Note 23 - Condensed Parent Company Statements

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE 23: CONDENSED PARENT COMPANY STATEMENTS

The condensed balance sheets as of December 31, 2021 and 2020, and statements of income, comprehensive income and cash flows for the years ended December 31, 2021, 2020 and 2019 for the parent company, Guaranty Federal Bancshares, Inc., are as follows:

Condensed Balance Sheets	December 31,
	2021			2020
Assets
Cash	$	3,774,700		$	7,940,245
Investment in subsidiary		123,442,257			115,472,127
Investment in Capital Trusts		310,000			465,000
Prepaid expenses and other assets		545,935			218,411
Deferred and receivable income taxes		1,350,782			2,197,483
	$	129,423,674		$	126,293,266
Liabilities
Subordinated debentures issued to Capital Trusts	$	10,310,000		$	15,465,000
Subordinated notes, net		19,609,576			19,564,131
Accrued expenses and other liabilities		2,033,067			2,288,869
Due to subsidiary		6,900			6,900
Stockholders' equity
Common stock		691,950			691,950
Additional paid-in capital		51,536,205			51,337,219
Retained earnings		85,081,199			77,073,707
Accumulated other comprehensive loss		(50,427	)		(53,378	)
Treasury stock		(39,794,796	)		(40,081,132	)
	$	129,423,674		$	126,293,266

Condensed Statements of Income	Years ended December 31,
	2021			2020			2019
Income
Dividends from subsidiary bank	$	5,000,000		$	2,500,000		$	8,000,000
Net gain on foreclosed assets		26,259			74,716			-
Interest income:
Other		10,216			22,515			40,855
		5,036,475			2,597,231			8,040,855
Expense
Interest expense		1,050,000			716,070			362,079
Other		2,481,173			1,839,930			2,439,799
		3,531,173			2,556,000			2,801,878
Income before income taxes and equity in undistributed income of subsidiaries		1,505,302			41,231			5,238,977
Credit for income taxes		(711,666	)		(681,092	)		(721,649	)
Income before equity in undistributed earnings of subsidiaries		2,216,968			722,323			5,960,626
Equity in undistributed income of subsidiaries		8,421,174			6,109,891			3,454,464
Net income	$	10,638,142		$	6,832,214		$	9,415,090

Condensed Statements of Cash Flows	Years ended December 31,
	2021			2020			2019
Cash Flows From Operating Activities
Net income	$	10,638,142		$	6,832,214		$	9,415,090
Items not requiring (providing) cash:
Distributions in excess of subsidiaries		(8,421,174	)		(6,109,891	)		(3,454,464	)
Deferred income taxes		789,978			(237,281	)		(633,608	)
Accretion of purchase accounting adjustment		-			-			(109,829	)
Stock award plan expense		485,322			136,138			615,385
Changes in:
Prepaid expenses and other assets		(327,524	)		118,386			(28,124	)
Income taxes payable/refundable		(86,645	)		(193,812	)		157,458
Accrued expenses		384,272			270,503			(26,374	)
Net cash provided by operating activities		3,462,371			816,257			5,935,534
Cash Flows From Financing Activities
Proceeds from stock options exercised		-			-			90,000
Cash dividends paid on common stock		(2,627,916	)		(2,615,028	)		(2,313,661	)
Proceeds from issuance of notes payable		-			1,800,000			7,450,000
Proceeds from issuance of subordinated notes, net		-			19,545,555			-
Repayment of notes payable		-			(13,000,000	)		(1,250,000	)
Repayment of Capital Trust		(5,000,000	)		-			(6,000,000	)
Treasury Stock purchased		-			(390,268	)		(3,604,879	)
Net cash provided by (used in) financing activities		(7,627,916	)		5,340,259			(5,628,540	)
Increase (Decrease) in cash		(4,165,545	)		6,156,516			306,994
Cash, beginning of year		7,940,245			1,783,729			1,476,735
Cash, end of year	$	3,774,700		$	7,940,245		$	1,783,729

Statements of Comprehensive Income	Years ended December 31,
	2021			2020			2019
NET INCOME	$	10,638,142		$	6,832,214		$	9,415,090
OTHER ITEMS OF COMPREHENSIVE INCOME:
Change in unrealized gain (loss) on interest rate swaps, before income taxes		597,363			(620,521	)		(560,388	)
Income tax expense (benefit) related to other items of comprehensive income		143,367			(140,519	)		(142,899	)
Other comprehensive income (loss)		453,996			(480,002	)		(417,489	)
Comprehensive income (loss) of Bank		(451,045	)		857,659			439,210
TOTAL COMPREHENSIVE INCOME	$	10,641,093		$	7,209,871		$	9,436,811