Springfield-based Guaranty Federal Bancshares Inc. (Nasdaq: GFED) ended 2021 with a large gain in fourth-quarter profits.
The operator of Guaranty Bank produced quarterly net income of $2.5 million, a 165% increase from $946,000 during the same period a year earlier, according to a news release. That brought full-year earnings to $10.6 million, a 56% jump.
“We are proud of our company’s performance for the quarter and the record earnings for the year," President and CEO Shaun Burke said in the release. "We’ve seen the positive results of a much- improving environment for loan growth and the continued reduction in our cost of funds.
"The low- interest rate environment and strong housing market continue to keep our mortgage team closing loans at a fast pace, which contributed significant fee income to our quarterly results."
2021 additionally brought big news for Guaranty, which reached an agreement to be sold to Moline, Illinois-based QCR Holdings Inc. (Nasdaq: QCRH) in a $151.6 million deal. Under the deal, Guaranty will merge with QCR-owned Springfield First Community Bank.
The transaction is slated to close early in the second quarter.
"Joining the QCRH and SFC Bank teams will further expand our product and servicing offerings as well as our footprint in southwest Missouri," Burke said in the release. "It will also create economies of scale to realize the operational efficiencies found in a larger company."
As of Dec. 31, Guaranty Bank's assets were $1.2 billion and deposits were $1 billion, according to the release. The company has 16 full-service branches in Greene, Christian, Jasper and Newton counties, as well as a loan production office in Webster County.
GFED shares were trading at $33.88 as of 9:28 a.m., compared with a 52-week range of $17.29 to $34.86 per share.
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