{"id":418705,"date":"2021-01-21T09:03:18","date_gmt":"2021-01-21T14:03:18","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=418705"},"modified":"2021-01-21T09:03:18","modified_gmt":"2021-01-21T14:03:18","slug":"guaranty-federal-bancshares-inc-announces-preliminary-fourth-quarter-and-fiscal-year-2020-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/guaranty-federal-bancshares-inc-announces-preliminary-fourth-quarter-and-fiscal-year-2020-financial-results\/","title":{"rendered":"Guaranty Federal Bancshares, Inc. Announces Preliminary Fourth Quarter and Fiscal Year 2020 Financial Results"},"content":{"rendered":"
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SPRINGFIELD, Mo., Jan. 21, 2021 (GLOBE NEWSWIRE) — <\/p>\n

\n CEO Comments<\/strong>\n <\/p>\n

\n \u201c2020 will go down as the year that the COVID-19 pandemic impacted nearly every facet of our lives. For those in the financial industry the year included multiple rounds of stimulus to support individuals and business alike, closed facilities, restricted meetings, abrupt interest rate cuts and numerous regulatory changes. Despite these events, we continued to serve our communities by refinancing record amounts of mortgages, experienced unprecedented growth in deposits, advanced technological initiatives to assist customers in socially distanced settings and supported over 8,000 local jobs by originating 650 loans via the SBA Paycheck Protection Program (PPP). These figures are noteworthy, but in my opinion, the real story is the efforts by over 230 dedicated team members during the year to realize these results. To recognize our most valuable assets and their efforts in these very trying times, the Bank worked to support our staff throughout the year by making additional resources available to them. Specifically, bank-wide cash bonuses were paid out, a crisis fund was started to assist employees who are experiencing financial hardships, work-from-home policies were expanded and extensive cleaning and sanitizing efforts were utilized so that our team could safely complete their tasks. Guaranty Bank has weathered many events since its founding in 1913, with 2020 being no different. We look forward to 2021 as we continue to serve our valued customers with the highest level of service possible while delivering solid returns to our shareholders. <\/em>\n <\/p>\n

\n Preliminary financial results for 2020 included a strong 13% growth in assets supported by continued success in growing our core deposits. Annual net income was $6.8 million resulting in diluted earnings per share of $1.57 compared to net income of $9.4 million and diluted earnings per share of $2.11 for 2019. The decrease in earnings is primarily due to <\/em>
\n $3.6 million in additional funding of the allowance for loan loss reserves as a precautionary response to negative economic conditions impacting the local economy and select borrowers. Loan modifications and deferrals have receded from highs seen in the second and third quarters, however, certain industries continue to face difficulties returning to pre-pandemic levels. Additional government assistance was approved near the end of 2020 along with the continuation of other regulatory relief items to support economic recovery. Net interest margin compression became a headwind as interest rate cuts made by the Federal Reserve in March reset earning asset rates at a faster pace than our deposit products.<\/em>\u00a0\u00a0 Our capital position remains above all regulatory thresholds and was aided with the issuance of $20.0 million of subordinated debt by our holding company in the third quarter. Measured growth based on sound business practices remains our focus as we support our employees, customers, shareholders and communities as we begin to navigate 2021.\u201d<\/em>\u00a0\u00a0 \u00a0\u00a0\u00a0<\/p>\n

\n – <\/em>
\n Shaun A. Burke, President and Chief Executive Officer<\/em>\n <\/p>\n

\n 2020 Fiscal Year Highlights<\/strong>\n <\/p>\n