EX-99.1 2 ex99-1.htm PRESS RELEASE ANNOUNCING 2005 4TH QUARTER EARNINGS Press release announcing 2005 4th quarter earnings
 
Exhibit 99.1
 

Contact: Shaun A. Burke     For Immediate Release
417-520-4333

GUARANTY FEDERAL BANCSHARES, INC. ANNOUNCES
A 38% INCREASE IN EARNINGS PER SHARE

SPRINGFIELD, MO - (January 13, 2006) - Guaranty Federal Bancshares, Inc, (NASDAQ:GFED), the holding company for Guaranty Bank (the “Company”), today announced the following highlights for its year ended December 31, 2005:

2005 Financial Highlights

·  
Assets increase $40M, or 9% over prior year
·  
Deposits increase $24M, or 8% over prior year
·  
Earnings per share increase 38% over prior year
·  
Loans increase $45M, or 11% over prior year
·  
Net earnings increase $1.6M, or 38% over prior year
·  
Net interest income increases 28% over prior year
·  
Net interest margin increases 41 basis points over prior year to 3.50%

The Company also announced that earnings for the fourth quarter ended December 31, 2005 were $0.59 per share (base on net earnings of $1,648,000 during that period), up from $0.41 per share the Company earned during the same quarter in the prior year (based on net earnings of $1,145,000 during that period). This represents a 44% increase in quarterly earnings per share.

Earnings for the twelve months ended December 31, 2005 were $2.12 per share (based on net earnings of $5,899,000 during that period), up from $1.53 per share the Company earned during the same period in the prior year (based on net earnings of $4,285,000 during that period). This represents a 38% increase in earnings per share compared to the same period one year ago.

The Company announced a plan to repurchase 300,000 shares of common stock on November 22, 2002. To date the Company has repurchased 261,457 shares of common stock under this plan at an average cost of $21.63 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 seven branches and 19 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.

Financial Highlights:
                  
   
Quarter ended
  
Year ended
  
Operating Data:
  
31-Dec-05
 
31-Dec-04
 
31-Dec-05
 
31-Dec-04
 
   
(Dollar amounts are in thousands, except per share data)
  
                   
Total interest income
  
$
7,730
    
5,634
   
27,283
   
20,539
 
Total interest expense
    
3,490
   
2,337
   
11,860
   
8,446
 
Provision for loan losses
    
240
   
225
   
945
   
864
 
Net interest income after
                      
provision for loan losses
    
4,000
   
3,072
   
14,478
   
11,229
 
Noninterest income
    
914
   
932
   
3,597
   
3,616
 
Noninterest expense
    
2,267
   
2,082
   
8,670
   
8,248
 
                       
Income before income tax
    
2,647
   
1,922
   
9,405
   
6,597
 
Income tax expense
    
999
   
777
   
3,506
   
2,313
 
 
                      
Net income
  
$
1,648
    
1,145
   
5,899
   
4,284
 
Net income per share-basic
  
$
0.59
  
$
0.41
  
$
2.12
  
$
1.53
  
Net income per share-diluted
  
$
0.56
  
$
0.39
  
$
2.03
  
$
1.47
  
                           
Annualized return on average assets
    
1.37
%
  
1.04
%
  
1.28
%
  
1.04
%
Annualized return on average equity
    
14.74
%
  
11.11
%
  
14.13
%
  
10.74
%
Net interest margin
    
3.71
%
  
3.16
%
  
3.50
%
  
3.09
%

 
 
 
 

   
As of
  
As of
  
Financial Condition Data:
  
31-Dec-05
 
31-Dec-04
 
           
Cash and cash equivalents
  
$
20,506
  
$
15,896
  
Investments
    
7,702
   
16,407
 
Loans, net of allowance for loan losses
    
435,528
   
392,333
 
12/31/2005 - $5,400; 12/31/2004 - $4,537
             
Other assets
    
17,265
   
15,961
 
Total Assets
  
$
481,001
  
$
440,597
  
 
          
Deposits
  
$
320,059
  
$
296,388
  
FHLB advances
    
100,000
   
100,000
 
Other liabilities
    
18,850
   
3,436
 
Total liabilities
  
$
438,909
  
$
399,824
  
Stockholder's equity
    
42,092
   
40,773
 
Total liabilities and stockholder equity
  
$
481,001
  
$
440,597
  
               
Book value per share
  
$
15.17
  
$
14.45
  
               
Non performing assets
  
$
722
  
$
1,007