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Guaranty Bank CEO Shaun Burke cites the Hometown Bank acquisition for record quarterly earnings. Pictured is a converted Hometown branch in Joplin.
Photo provided by Guaranty Bank
Guaranty Bank CEO Shaun Burke cites the Hometown Bank acquisition for record quarterly earnings. Pictured is a converted Hometown branch in Joplin.

Guaranty doubles quarterly profits

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Guaranty Federal Bancshares Inc. (Nasdaq: GFED) more than doubled its third-quarter earnings to $3.9 million from $1.7 million a year earlier.

The Guaranty Bank operator’s diluted share earnings increased by 49 cents to 88 cents for the three-month period that ended Sept. 30, according to a news release.

Guaranty President and CEO Shaun Burke pointed to the impact of Guaranty’s second-quarter purchase of Carthage-based Hometown Bancshares Inc. for $4.6 million. The acquisition expanded Guaranty’s footprint into Jasper and Newton counties, adding two branches each in Joplin and Carthage and one each in Neosho, Oronogo and Pineville, according to past Springfield Business Journal reporting.

“We experienced a smooth integration with the Hometown acquisition and are already seeing the benefits that our new team members and expansion provides to our company,” Burke said in the release.

Third-quarter financial notes:
    •    Net interest income improved by 77 percent to $10.7 million.
    •    Provision for loan losses was down 56 percent to $200,000.
    •    Salaries and employee benefits totaled $3.9 million, a 27 percent increase.

Guaranty held $966.4 million in assets and $760.7 million in deposits as of Sept. 30. The company operates 18 branches in Greene, Christian, Jasper, Newton and McDonald counties, as well as a loan production office in Webster County, according to the release.

The company ranked fourth this year in deposits held in the Springfield metropolitan statistical area as of June 30, with $612.4 million, or 6.2 percent of the market, according to the Federal Deposit Insurance Corp.

GFED shares were trading at $23.01 as of 9:42 a.m., compared with a 52-week range of $20.41 to $27.39.

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