GUARANTY FEDERAL BANCSHARES INC - 10-Q Quarterly Report

Back to GetFilings.com

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended December 31, 2002

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission number 0-23325

Guaranty Federal Bancshares, Inc.

(Exact name of registrant as specified in its charter)

Delaware

43-1792717

(State or other jurisdiction of

(IRS Employer Identification No.)

incorporation or organization)

1341 West Battlefield

Springfield, Missouri

65807

(Address of principal executive offices)

(Zip Code)

Telephone Number: (417) 520-4333

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes X No___

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of Exchange Act)

Yes No X

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

Class Outstanding at February 10, 2003

Common Stock, Par Value $0.10

3,028,601 Shares

GUARANTY FEDERAL BANCSHARES, INC.

Form 10-Q

TABLE OF CONTENTS

Item

Page

PART I. Financial Information

1. Consolidated Financial Statements (Unaudited):

Statements of Financial Condition

Statements of Income

Statements of Stockholders’ Equity

Statements of Cash Flows

Notes to Condensed Consolidated Financial Statements

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

3. Quantitative and Qualitative Disclosures about Market Risk

4. Control and Procedures

PART II. Other Information

1. Legal Proceedings

2. Changes in Securities

3. Defaults Upon Senior Securities

4. Submission of Matters to Vote of Common Stockholders

5. Other Information

6. Exhibits and Reports on Form 8-K

Signatures

Certification of the Principal Executive Officer

Certification of the Principal Financial Officer

PART I

Item 1. Financial Statements

GUARANTY FEDERAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 2002 (UNAUDITED) AND JUNE 30, 2002

ASSETS	12/31/02	6/30/02
Cash	$ 3,030,116	3,251,579
Interest-bearing deposits in other financial institutions	10,180,720	13,711,923
Cash and cash equivalents	13,210,836	16,963,502
Available-for-sale securities	14,763,145	16,463,460
Held-to-maturity securities	2,819,833	3,219,091
Stock in Federal Home Loan Bank, at cost	8,600,400	8,600,400
Mortgage loans held for sale	5,266,077	3,131,138
Loans receivable, net of allowance for loan losses;
12/31/02 - $2,639,552; 6/30/02 $2,649,872	319,633,449	316,785,118
Accrued interest receivable:
Loans	1,394,286	1,569,260
Investments	40,492	85,251
Prepaid expenses and other assets	1,875,102	1,693,760
Foreclosed assets held for sale	8,450	683,329
Premises and equipment	7,089,729	7,356,098
	$ 374,701,799	376,550,407
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits	$ 230,258,874	225,283,994
Federal Home Loan Bank advances	104,368,292	111,083,163
Securities sold under agreements to repurchase	702,501	1,093,074
Advances from borrowers for taxes and insurance	324,282	1,048,297
Accrued expenses and other liabilities	52,749	103,993
Accrued interest payable	742,372	759,099
Dividend payable	420,430	347,656
Income taxes payable	362,075	163,897
Deferred income taxes	1,202,589	1,232,357
	338,434,164	341,115,530
STOCKHOLDERS' EQUITY
Common stock:
$0.10 par value; authorized 10,000,000 shares;
issued; 12/31/02 - 6,380,034 shares, 6/30/02 - 6,365,404 shares	638,003	636,540
Additional paid-in capital	50,195,997	49,842,032
Unearned ESOP shares	(2,281,070)	(2,406,070)
Retained earnings, substantially restricted	28,299,337	27,372,935
Accumulated other comprehensive income
Unrealized appreciation on available-for-sale securities,
net of income taxes; 12/31/02 - $1,532,437, 6/30/02 - $1,731,122	2,609,285	2,947,587
	79,461,552	78,393,024
Treasury stock, at cost; 12/31/02 - 3,349,071 shares, 6/30/02 - 3,333,089 shares	(43,193,917)	(42,958,147)
	36,267,635	35,434,877
	$ 374,701,799	376,550,407

See Notes to Condensed Consolidated Financial Statements

GUARANTY FEDERAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2002 AND 2001 (UNAUDITED)

	Three months ended		Six months ended
	12/31/02	12/31/01	12/31/02	12/31/01
INTEREST INCOME
Loans	$ 5,338,380	6,159,625	10,826,819	12,520,007
Investment securities	105,076	190,223	231,070	383,948
Other	100,284	146,759	232,307	334,128
Total Interest Income	5,543,740	6,496,607	11,290,196	13,238,083
INTEREST EXPENSE
Deposits	1,504,795	1,816,039	3,121,175	3,623,412
Federal Home Loan Bank advances	1,458,495	1,854,978	2,959,213	3,988,261
Other	2,111	9,994	5,188	22,182
Total Interest Expense	2,965,401	3,681,011	6,085,576	7,633,855
Net Interest Income	2,578,339	2,815,596	5,204,620	5,604,228
Provision for Loan Losses	105,000	75,000	205,000	150,000
Net Interest Income after
Provision for Loan Losses	2,473,339	2,740,596	4,999,620	5,454,228
NONINTEREST INCOME (LOSS)
Service charges	443,552	389,394	884,132	742,419
Late charges and other fees	(91,613)	29,949	65,238	58,967
Gain on sale of investment securities	-	205,199	-	366,911
Gain on sale of loans	444,643	337,155	669,220	517,941
Income on foreclosed assets	24,658	861	19,865	861
Other income	67,042	55,957	113,279	121,152
Total Noninterest Income	888,282	1,018,515	1,751,734	1,808,251
NONINTEREST EXPENSE
Salaries and employee benefits	1,117,597	1,145,672	2,238,783	2,227,377
Occupancy	337,044	399,321	673,847	717,454
SAIF deposit insurance premiums	9,557	10,409	19,416	17,365
Data processing fees	153,836	110,405	294,976	245,027
Advertising	55,097	107,171	104,210	185,583
Other expense	360,618	606,421	728,746	992,884
Total Noninterest Expense	2,033,749	2,379,399	4,059,978	4,385,690
Income Before Income Taxes	1,327,872	1,379,712	2,691,376	2,876,789
Provision for Income Taxes	459,888	447,024	927,346	975,021
NET INCOME	867,984	932,688	1,764,030	1,901,768
OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized appreciation (depreciation) on
available-for-sale securities, net of income taxes
of $12,087, ($71,603), ($198,685) and ($335,942),
respectively	20,581	(121,918)	(338,302)	(572,009)
COMPREHENSIVE INCOME	888,565	810,770	$ 1,425,728	1,329,759
BASIC EARNINGS PER SHARE	$ 0.31	0.25	$ 0.63	0.50
DILUTED EARNINGS PER SHARE	$ 0.30	0.24	$ 0.62	0.49

See Notes to Condensed Consolidated Financial Statements

GUARANTY FEDERAL BANCSHARES, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
SIX MONTHS ENDED DECEMBER 31, 2002 (UNAUDITED)

					Accumulated Other Comprehensive Income
	Common Stock	Additional Paid-In Capital	Unearned ESOP Shares	Retained Earnings	Unrealized Appreciation on Available-for-Sale Securities, Net	Treasury Stock	Total

Balance, July 1, 2002	$ 636,540	49,842,032	(2,406,070)	27,372,935	2,947,587	(42,958,147)	35,434,877
Net income	-	-	-	1,764,030	-	-	1,764,030
Dividends on common stock,
($0.15 per share on 2,781,315 shares &
$0.15 per share on 2,802,866 shares)	-	-	-	(837,628)	-	-	(837,628)
Stock award plans	-	186,630	-	-	-	-	186,630
Stock options exercised	1,463	112,091	-	-	-	-	113,554
Release of ESOP shares	-	55,244	125,000	-	-	-	180,244
Treasury stock purchased	-	-	-	-	-	(235,770)	(235,770)
Change in unrealized appreciation on
available-for-sale securities, net of
income taxes of ($198,685)	-	-	-	-	(338,302)	-	(338,302)
Balance, December 31, 2002	$ 638,003	50,195,997	(2,281,070)	28,299,337	2,609,285	(43,193,917)	36,267,635

See Notes to Condensed Consolidated Financial Statements

GUARANTY FEDERAL BANCSHARES, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
SIX MONTHS ENDED DECEMBER 31, 2001 (UNAUDITED)

					Accumulated Other Comprehensive Income
	Common Stock	Additional Paid-In Capital	Unearned ESOP Shares	Retained Earnings	Unrealized Appreciation on Available-for-Sale Securities, Net	Treasury Stock	Total

Balance, July 1, 2001	$ 626,840	48,451,515	(2,640,800)	25,951,537	3,948,203	(26,131,504)	50,205,791
Net income	-	-	-	1,901,768	-	-	1,901,768
Dividends on common stock,
($0.25 per share on 3,800,279 shares)	-	-	-	(950,070)	-	-	(950,070)
Stock award plans	-	198,111	-	-	-	-	198,111
Stock options exercised	3,116	224,270	-	-	-	-	227,386
Dividends on RRP stock	-	1,647	-	-	-	-	1,647
Release of ESOP shares	-	39,157	114,820	-	-	-	153,977
Treasury stock purchased	-	-	-	-	-	(784,561)	(784,561)
Change in unrealized appreciation on
available-for-sale securities, net of
income taxes of ($335,942)	-	-	-	-	(572,009)	-	(572,009)
Balance, December 31, 2001	$ 629,956	48,914,700	(2,525,980)	26,903,235	3,376,194	(26,916,065)	50,382,040

See Notes to Condensed Consolidated Financial Statements

GUARANTY FEDERAL BANCSHARES, INC
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED DECEMBER 31, 2002 AND 2001 (UNAUDITED)
	12/31/02	12/31/01
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,764,030	1,901,768
Items not requiring (providing) cash:
Deferred income taxes	168,917	178,647
Depreciation	404,498	435,342
Provision for loan losses	205,000	150,000
Gain on loans and investment securities	(669,220)	(884,852)
Gain on sale of foreclosed assets	(26,218)	(1,140)
Amortization of deferred income, premiums and discounts	(80,575)	(17,280)
RRP/RSP expense	177,810	218,328
Origination of loans held for sale	(34,910,348)	(37,624,182)
Proceeds from sale of loans held for sale	33,444,629	32,996,233
Release of ESOP shares	180,244	153,977
Changes in:
Accrued interest receivable	219,733	395,589
Prepaid expenses and other assets	(181,342)	(627,993)
Accounts payable and accrued expenses	(67,971)	104,434
Income taxes payable	205,676	117,454
Net cash provided by (used in) operating activities	834,863	(2,503,675)
CASH FLOWS FROM INVESTING ACTIVITIES
Net (increase) decrease in loans	(3,172,569)	2,133,129
Principal payments on available-for-sale securities	172,835	1,216,091
Principal payments on held-to-maturity securities	406,222	756,495
Purchase of premises and equipment	(138,129)	(182,095)
Purchase of available-for-sale securities	(2,978,928)	(6,415,229)
Proceeds from sale of available-for-sale securities	-	2,109,541
Proceeds from maturities of available-for-sale securities	4,000,000	2,000,000
Proceeds from sale of foreclosed assets	863,367	11,491
Cash acquired in purchase of Commercial Federal Bank branches	-	25,556,972
Net cash provided by (used in) investing activities	(847,202)	27,186,395