Guaranty Federal Bancshares, Inc. Announces a 6 Percent Increase in Quarterly Earnings Per Share
SPRINGFIELD, Mo., July 14, 2006 -- Guaranty Federal Bancshares, Inc. (Nasdaq:GFED), the holding company (the "Company") for Guaranty Bank, today announces the following highlights for its second quarter ended June 30, 2006:
Second Quarter 2006 Financial Highlights
-- Annualized return on average assets increased to 1.31%
-- Earnings per share increased 6% over prior year quarter
-- Net income increased 9% over prior year quarter
-- Net interest income increased 13% over prior year quarter
-- Net interest margin increased 24 basis points over prior
year quarter to 3.69%
The Company today announces that earnings for the second quarter ended June 30, 2006 were $0.56 per share ($1,581,000), up from the $0.53 per share ($1,449,000) the Company earned during the same quarter in the prior year. This represents a 6% increase in quarterly earnings per share.
The discussion set forth above may contain forward-looking comments. Such comments are based upon the information currently available to management of the Company and management's perception thereof as of the date of this release. When used in this release, words such as "anticipates," "estimates," "believes," "expects," and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Such statements are subject to risks and uncertainties. Actual results of the Company's operations could materially differ from those forward-looking comments. The differences could be caused by a number of factors or combination of factors including, but not limited to: changes in demand for banking services; changes in portfolio composition; changes in management strategy; increased competition from both bank and non-bank companies; changes in the general level of interest rates; the effect of regulatory or government legislative changes; technology changes; fluctuation in inflation; and other factors set forth in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time.
Guaranty Federal Bancshares Inc. has a subsidiary corporation offering full banking services. The principal subsidiary, Guaranty Bank, is located in Springfield, Missouri, and has eight branches and 20 ATM locations located in Greene and Christian Counties. In addition Guaranty Bank is a member of the Privileged Status ATM network, which provides its customers surcharge free access to over 60 area ATMs and over 1,000 ATMs nationwide.
Quarter ended Six Months ended
Operating Data: 30-Jun-06 30-Jun-05 30-Jun-06 30-Jun-05
--------- --------- --------- ---------
(Dollar amounts are in thousands,
except per share data)
Total interest income $ 8,386 6,561 16,464 12,462
Total interest expense 4,125 2,783 7,894 5,241
Provision for loan losses 225 240 450 465
------- ------- ------- -------
Net interest income after
provision for loan losses 4,036 3,538 8,120 6,756
Noninterest income 959 841 1,781 1,725
Noninterest expense 2,544 2,066 4,911 4,246
------- ------- ------- -------
Income before income tax 2,451 2,313 4,990 4,235
Income tax expense 870 864 1,844 1,572
------- ------- ------- -------
Net income $ 1,581 1,449 3,146 2,663
======= ======= ======= =======
Net income per share - basic $ 0.56 0.53 1.12 0.96
======= ======= ======= =======
Net income per share - diluted $ 0.54 0.50 1.08 0.91
======= ======= ======= =======
Annualized return on average
assets 1.31% 1.27% 1.31% 1.19%
Annualized return on average
equity 14.19% 14.44% 14.48% 13.14%
Net interest margin 3.69% 3.45% 3.73% 3.37%
As of At
Financial Condition Data: 30-Jun-06 31-Dec-05
------------------------- ---------- ---------
Cash and cash equivalents $ 19,023 20,506
Investments 10,004 12,681
Loans, net of allowance for loan losses 448,068 435,528
6/30/2006 - $5,601; 12/31/2005 -
$5,400
Other assets 19,017 12,286
-------- --------
Total assets $496,112 481,001
======== ========
Deposits $316,008 320,059
FHLB advances 116,000 100,000
Subordinated debentures 15,465 15,465
Other liabilities 4,588 3,435
-------- --------
Total liabilities 452,061 438,909
-------- --------
Stockholder's equity 44,051 42,092
-------- --------
Total liabilities and stockholder
equity $496,112 481,001
======== ========
Equity to assets ratio 8.9% 8.8%
======== ========
Book value per share $15.40 15.17
======== ========
Non performing assets $3,485 722
======== ========
CONTACT: Guaranty Federal Bancshares Inc.
Shaun A. Burke
417-520-4333