GUARANTY FEDERAL BANCSHARES INC - 10-Q Quarterly Report

. UNITED STATES

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 March 31, 2005

[ ] 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 Section 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 the 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 as of May 12, 2005
Common Stock, Par Value $0.10 per share	2,915,194 Shares

GUARANTY FEDERAL BANCSHARES, INC.
GUARANTY FEDERAL BANCSHARES, INC.

TABLE OF CONTENTS
Item		Page
PART I. Financial Information

1. Financial Statements Consolidated Financial Statements (Unaudited):
	Statements of Financial Condition	3
	Statements of Income	4
	Statements of Stockholders’ Equity	5
	Statements of Cash Flows	7
	Notes to Consolidated Financial Statements	8

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		10

3. Quantitative and Qualitative Disclosures about Market Risk		16

4. Control and Procedures		18

PART II. Other Information

1. Legal Proceedings		19

2. Unregistered Sales of Equity Securities and Use of Proceeds		19

3. Defaults Upon Senior Securities		19

4. Submission of Matters to a Vote of Security Holders		19

5. Other Information		19

6. Exhibits		19

Signatures


	2

PART I

Item 1. Financial Statements

GUARANTY FEDERAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
MARCH 31, 2005 (UNAUDITED) AND DECEMBER 31, 2004

ASSETS	3/31/05			12/31/04
Cash	$	7,994,293			14,087,915
Interest-bearing deposits in other financial institutions		643,462			1,808,543
Cash and cash equivalents		8,637,755			15,896,458
Available-for-sale securities		14,249,860			15,101,768
Held-to-maturity securities		1,214,515			1,305,158
Stock in Federal Home Loan Bank, at cost		5,048,600			5,146,500
Mortgage loans held for sale		2,416,043			3,590,536
Loans receivable, net of allowance for loan losses of
March 31, 2005 - $4,739,298 - December 31, 2004 - $4,536,654		407,264,291			388,742,792
Accrued interest receivable:
Loans		1,528,532			1,500,170
Investments		79,820			69,845
Prepaid expenses and other assets		1,939,996			1,976,284
Foreclosed assets held for sale		39,800			78,150
Premises and equipment		7,137,613			7,188,867
	$	449,556,825			440,596,528

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Deposits	$	302,080,609			296,387,742
Federal Home Loan Bank advances		104,000,000			100,000,000
Securities sold under agreements to repurchase		855,267			1,264,020
Advances from borrowers for taxes and insurance		535,087			271,796
Accrued expenses and other liabilities		333,703			234,818
Accrued interest payable		520,635			361,516
Dividend payable		448,863			450,868
Income taxes payable		886,985			220,046
Deferred income taxes		197,818			632,459
		409,858,967			399,823,265
STOCKHOLDERS' EQUITY
Common Stock:
$0.10 par value; authorized 10,000,000 shares;
issued March 31, 2005 - 6,509,010 shares;
December 31, 2004 - 6,493,861 shares		650,901			649,386
Additional paid-in capital		52,645,893			52,384,842
Unearned ESOP shares		(1,743,930	)		(1,800,930	)
Retained earnings, substantially restricted		33,201,271			32,437,131
Accumulated other comprehensive income
Unrealized appreciation on available-for-sale securities,
net of income taxes; March 31, 2005 - $1,338,853;
December 31, 2004 - $1,653,740		2,279,669			2,815,828
		87,033,804			86,486,257
Treasury stock, at cost; March 31, 2005 - 3,562,467 shares;
December 31, 2004 - 3,492,759 shares		(47,335,947	)		(45,712,994	)
		39,697,857			40,773,263
	$	449,556,825			440,596,528

See Notes to Condensed Consolidated Financial Statements
	3

GUARANTY FEDERAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 2005 AND 2004 (UNAUDITED)

	3/31/2005		3/31/2004
INTEREST INCOME
Loans	$	5,726,879		4,719,147
Investment securities		95,791		68,182
Other		78,248		53,788
		5,900,919		4,841,117
INTEREST EXPENSE
Deposits		1,559,107		1,153,832
Federal Home Loan Bank advances		893,972		895,578
Other		4,129		888
		2,457,208		2,050,298
NET INTEREST INCOME		3,443,710		2,790,819
PROVISION FOR LOAN LOSSES		225,000		188,830
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES		3,218,710		2,601,989
NONINTEREST INCOME
Service charges		381,348		440,595
Late charges and other fees		91,475		73,630
Gain on sale of investment securities		195,788		177,957
Gain on sale of loans		141,948		121,612
Income (loss) on foreclosed assets		2,801		(5,987	)
Other income		70,550		45,477
		883,910		853,284

NONINTEREST EXPENSE
Salaries and employee benefits		1,272,824		1,126,595
Occupancy		333,209		278,881