EX-99.1 2 ex99-1.htm PRESS RELEASE ANNOUNCING 2006 2ND QTR EARNINGS Press release announcing 2006 2nd qtr earnings
 
                                                                                                                                                                                                                                                                                 Exhibit 99.1
 
Contact: Shaun A. Burke                  For ImmediateRelease
417-520-4333


GUARANTY FEDERAL BANCSHARES, INC. ANNOUNCES
                                                                     A 6% 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