Guaranty Federal Bancshares, Inc. Announces a 14% Increase in Earnings per Share for Six Months Ended December 31, 2003
SPRINGFIELD, Mo., Jan. 16, 2004 -- Guaranty Federal Bancshares, Inc, (Nasdaq:GFED), the holding company for Guaranty Bank, today announced earnings for the second quarter ended December 31, 2003, were $0.33 per share, ($923,000) up from the $0.31 per share ($868,000) the Company earned during the same quarter in the prior year. This represents a 6% increase in quarterly earnings per share. Earnings for the six-month period ending December 31, 2003 were $0.72 per share, ($2,000,000) up from the $0.63 per share, ($1,764,000) the Company earned during the same period in 2002. This represents a 14% increase in earnings per share when compared to the same period in the prior year.
In conjunction with the Company's conversion of the subsidiary Guaranty Federal Savings Bank from a federal savings bank to a state chartered trust company, Guaranty Bank, on June 27, 2003, the accounting and tax years of the Company will change to a calendar year basis beginning January 1, 2004. To transition from the fiscal year ended June 30, 2003 to the calendar year 2004, the Company will have a short fiscal year ended December 31, 2003 that will include the six months from July 1, 2003 to December 31, 2003.
The Company announced a plan to repurchase 300,000 shares of common stock on November 22, 2002. To date the Company has repurchased 58,806 shares of common stock under this plan at an average cost of $15.90 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, Mo., and has nine branches and 18 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 ATM's and over 1,000 ATM's nationwide.
Financial Highlights:
Quarter ended Six Months ended
Operating Data: 31-Dec-03 31-Dec-02 31-Dec-03 31-Dec-02
--------- --------- --------- ---------
(Dollar amounts are in thousands, except per share data)
Total interest income $ 4,849 5,544 9,846 11,290
Total interest
expense 2,165 2,966 4,491 6,086
Provision for loan
losses 150 105 362 205
--------- --------- --------- ---------
Net interest income
after provision
for loan losses 2,534 2,473 4,993 4,999
Noninterest income 858 889 2,089 1,752
Noninterest expense 1,999 2,034 3,994 4,060
--------- --------- --------- ---------
Income before income
tax 1,393 1,328 3,088 2,691
Income tax expense 470 460 1,088 927
--------- --------- --------- ---------
Net income $ 923 868 2,000 1,764
Net income per ========= ========= ========= =========
share-basic $ 0.33 $ 0.31 $ 0.72 $ 0.63
Net income per ========= ========= ========= =========
share-diluted $ 0.32 $ 0.30 $ 0.69 $ 0.62
========= ========= ========= =========
Annualized return on
average assets 0.98% 0.93% 1.06% 0.94%
Annualized return on
average equity 9.65% 9.52% 10.56% 9.70%
Net interest margin 3.02% 2.87% 2.99% 2.89%
Financial Condition As of As of
Data: 31-Dec-03 30-Jun-03
--------- ---------
Cash and cash
equivalents $ 22,657 19,015
Investments 16,731 15,522
Loans, net of
allowance for loan
losses 332,930 336,838
12/31/2003 - $3,086;
6/30/2003 - $2,775
Other assets 15,239 18,776
--------- ---------
Total Assets $ 387,557 390,151
========= =========
Deposits $ 237,131 235,677
FHLB advances 108,837 114,619
Other liabilities 3,111 3,313
--------- ---------
Total liabilities $ 349,079 353,609
Stockholder's equity 38,478 36,542
--------- ---------
Total liabilities
and stockholder
equity $ 387,557 390,151
========= =========
Book value per share $ 13.80 13.14
========= =========
Non performing assets $ 749 513
========= =========
CONTACT: Guaranty Federal Bancshares, Inc.
Don M. Gibson
(417) 520-4333