SPRINGFIELD, Mo., April 18, 2013 (GLOBE NEWSWIRE) -- Guaranty Federal Bancshares, Inc., (Nasdaq:GFED), the holding company (the "Company") for Guaranty Bank, today announces the following results for its first quarter ended March 31, 2013.
First Quarter 2013 Financial Highlights
- Diluted earnings per common share for the quarter increased to $0.25 compared to $0.20 per common share for the same quarter in 2012.
- Net income increased to $953,000 for the quarter compared to $834,000 for the same quarter in 2012.
- Annualized return on average assets increased to .59% for the quarter compared to .52% for the same quarter in 2012.
- Annualized return on average equity increased to 7.47% for the quarter compared to 6.08% for the same quarter in 2012.
- Transaction deposit account balances as of March 31, 2013 have increased $14.1 million, or 4%, since December 31, 2012.
- Long-term borrowings (classified as non-core funding liabilities) decreased $15.1 million as of March 31, 2013 compared to December 31, 2012.
- Book value per common share was $14.49 as of March 31, 2013, an increase of $.15 as compared to December 31, 2012.
Net income for the quarter ended March 31, 2013 was $953,000 as compared to $834,000 for the same quarter in 2012. After preferred stock dividends and accretion, diluted earnings per common share was $0.25 for the quarter, an increase from the $0.20 per diluted common share during the same quarter in 2012.The following were key issues that contributed to the first quarter financial results as compared to the same quarter in 2012:
Net interest income – One of the Company's primary objectives over the last several years has been to improve net interest margin. A weakened economy, increased regulation and a historically low interest rate environment have made it difficult to increase earning assets, especially in the loan portfolio. Total net loans have declined $15.2 million since December 31, 2012 which has had a negative impact on interest income and net interest margin. Despite the decline in loans, net interest income remains steady quarter over quarter due to the Company's efforts in growing core deposits and its management of interest bearing liabilities. The average cost of funds for the first quarter was 1.03% compared to 1.36% for the same quarter in 2012. The Company has benefited from the continued repricing of most of its deposit products throughout 2012 and the reduction in higher cost wholesale funding balances (primarily Federal Home Loan Bank advances). Non-interest income – Non-interest income increased $173,000 during the quarter due to several factors. The Company's mortgage division continues to produce strong volume and income. Gains on sales of loans in the secondary market increased $70,000 for the period compared to the prior year quarter. Also, the Company recognized gains of $89,000 on various investments, an increase of $51,000 over the prior year quarter. Another noteworthy item for the quarter was the loss of $72,000 that was recognized on foreclosed assets, representing a $29,000 decline compared to the same quarter in 2012. Non-interest expense – Non-interest expense increased $378,000 over the prior year quarter. The primary factor was a charge of $231,000 relating to losses on three customer deposit accounts. This is considered a one-time charge and the Company has made a claim to its insurance carrier for a partial recovery. Salaries and employee benefits have also increased $57,000 due to normal pay increases of existing staff and increased health care costs over the prior year quarter. Provision for loan loss expense and allowance for loan losses –Based on its reserve analysis and methodology, the Company recorded a provision for loan loss expense of $400,000 during the quarter, a decrease from the $900,000 recognized in the prior year quarter. The allowance for loan losses as of March 31, 2013 was 1.76% of gross loans outstanding (excluding mortgage loans held for sale) compared to 1.83% as of December 31, 2012. Non-performing assets – The Company experienced a small improvement in nonperforming assets which were $19.6 million as of March 31, 2013, representing a decrease of $300,000 from December 31, 2012. Nonperforming assets as a percentage of total assets remained at 3.01% as of March 31, 2013, no change from December 31, 2012. Reducing non-performing assets has been and will continue to be a primary focus of the Company.Non-Generally Accepted Accounting Principle (GAAP) Financial Measures In addition to the GAAP financial results presented in this press release, the Company presents non-GAAP financial measures discussed below. These non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance. Additionally, Company management believes that this presentation enables meaningful comparison of financial performance in various periods. However, the non-GAAP financial results presented should not be considered a substitute for results that are presented in a manner consistent with GAAP. A limitation of the non-GAAP financial measures presented is that the adjustments concern gains, losses or expenses that the Company does expect to continue to recognize; the adjustments of these items should not be construed as an inference that these gains or expenses are unusual, infrequent or non-recurring. Therefore, Company management believes that both GAAP measures of its financial performance and the respective non-GAAP measures should be considered together.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV