Guaranty’s earnings dip 4% in Q1

Citing a challenge loan environment, Springfield-based Guaranty Federal Bancshares Inc. (Nasdaq: GFED) reported first-quarter net income available to common shareholders of $1.28 million, a roughly 4 percent slide from $1.33 million a year earlier.

The holding company of nine area Guaranty Bank branches posted diluted share earnings of 29 cents for the three months ended March 31, a 1-cent decrease, according to a news release.

Guaranty officials noted “unanticipated payoffs and a highly competitive pricing environment” affected the bank’s ability to grow loan balances, interest income and loan yield.

First-quarter financial notes:
    •    Net interest income dipped 0.3 percent to $5.18 million compared to the same quarter of 2015.
    •    Provision for loan losses more than doubled to $375,000.
    •    Total interest expenses slid 6 percent to $1 million, while noninterest expenses rose 0.7 percent to $4.1 million.

As of March 31, Guaranty held assets of $656 million and deposits of $519 million. In addition to its branches, the company also operates a loan production office in Marshfield.

The company announced this month it hired a Joplin market leader with plans to open a loan production office in the city.

GFED shares were trading at $15.84 as of 9:06 a.m., compared to a 52-week range of $14.15 to $16.25.