Guaranty Federal Bancshares Inc. Message Board

The following is per the press release:

"The Treasury no longer has any equity interest in the Company as a result of the Company's repurchase of the warrant. In June 2012, the Company repurchased $5 million of the $17 million in preferred stock originally sold to the Treasury in 2009. In April 2013, the Treasury sold the remaining $12 million of preferred stock at a private auction to entities unrelated to the Company."

Sorry the amount of Tarp funds is 12 million

The 112 Million of TARP funds are still outstanding . I believe what was repurchased were the Warrents to purchase GFED stock. The interest payments are still due and if not repaid by the end of January 2014 the rate will increase to 9% The 12 Million needs to be refinanced or paid off before they can even think about dividends It may still be down the road aways

Does anyone think they could reinstate a dividend? Might help move the shares if they did...

Don't know. I have a call into the bank.

Employee embezzlement of customer funds?

I would be happy to buy all that you can sell me of GFED at $10.

In banking, as in insurance, you really never know about the next blow up. It's a percentage game that some play well, others don't. But you never know in any given time.

You can fault Burke of not forthcoming on a few occasions and on a few blunders, but the theme for investment does not change.
It has book value 50% above current quotations.
Its credit problem is receding.

The turn off for me is the lack of earning power. Pretax, pre-provision operating income was stuck at 1.1% on asset, way bellow peer average of 1.7%.
The bank held on its interest spread by lowing interest cost. It held down expense too. What it need is to make profitable loans. Easy said than done.

Not exciting enough to buy at $10 per-share for sure. I still don't see how some of the multi-million dollar fraud loans from last year got swept under the rug without seeing any major charge-offs since then.

I have serious reservations about GFED because I have a hard time trusting anything they say. I would be far-far more likely to buy here if they canned Burke. On paper it looks fairly attractive, but you never know what disaster is lurking just around the corner with GFED.

Tired, Many banks use a preferred issue to pay off TARP. As most on this Board knows, GFED's TARP will reset at, some point not far from now, at 9%. If GFED can sell a pfd. at say 5%, it is a good deal for the entire bank.

I'd buy some BB paper at 7+%....