CONDENSED PARENT COMPANY STATEMENTS

12 Months Ended

Dec. 31, 2011

CONDENSED PARENT COMPANY STATEMENTS [Abstract]

CONDENSED PARENT COMPANY STATEMENTS

NOTE 20:            CONDENSED PARENT COMPANY STATEMENTS

The condensed balance sheets as of December 31, 2011 and 2010, and statements of operations and cash flows for the years ended December 31, 2011, 2010 and 2009 for the parent company, Guaranty Federal Bancshares, Inc., are as follows:

Balance Sheets	December 31,
	2011			2010
Assets
Cash	$	781,432		$	1,197,553
Available-for-sale securities		62,262			77,920
Due from subsidiary		21,295			21,295
Investment in subsidiary		67,649,693			65,164,131
Investment in Capital Trust I & II		465,000			465,000
Prepaid expenses and other assets		183,508			287,684
Refundable income taxes		717,319			499,486
Deferred income taxes		5,793			38,833
	$	69,886,302		$	67,751,902
Liabilities
Subordinated debentures	$	15,465,000		$	15,465,000
Accrued expenses and other liabilities		186,455			246,136
Stockholders' equity
Series A preferred stock		16,425,912			16,150,350
Common stock		677,980			677,980
Common stock warrants		1,377,811			1,377,811
Additional paid-in capital		58,333,614			58,505,046
Unearned ESOP shares		(204,930	)		(432,930	)
Retained earnings		38,456,991			35,746,914
Unrealized appreciation on available-for-sale securities and interest rate swaps, net		791,285			1,843,004
Treasury stock		(61,623,816	)		(61,827,409	)
	$	69,886,302		$	67,751,902

Statements of Operations	Years ended December 31,
	2011			2010			2009
Income
Dividends from subsidiary bank	$	1,000,000		$	-		$	-
Gain on investment securities		-			-			365,077
Interest income:
Related party		14,753			25,933			36,726
Other		18,369			30,783			55,425
		1,033,122			56,716			457,228
Expense
Interest expense:
Other		-			-			2,556
Related party		610,929			1,023,783			1,023,783
Other		462,971			463,502			458,947
		1,073,900			1,487,285			1,485,286
Loss before income taxes and equity in undistributed income (loss) of subsidiaries		(40,778	)		(1,430,569	)		(1,028,058	)
Credit for income taxes		(349,000	)		(480,000	)		(302,528	)
Income (Loss) before equity in undistributed earnings of subsidiaries		308,222			(950,569	)		(725,530	)
Equity in undistributed income (losses) of subsidiaries		3,527,417			2,081,340			(1,615,188	)
Net income (loss)	$	3,835,639		$	1,130,771		$	(2,340,718	)

Statements of Cash Flows	Years ended December 31,
	2011			2010			2009
Cash Flows From Operating Activities
Net income (loss)	$	3,835,639		$	1,130,771		$	(2,340,718	)
Items not requiring (providing) cash:
Equity in undistributed (income) loss of subsidiaries		(3,527,417	)		(2,081,340	)		1,615,188
Deferred income taxes		38,834			-			-
Release of ESOP shares		126,737			100,014			121,219
Stock award plan expense		186,655			109,386			95,268
Gain on investment securities		-			-			(365,077	)
Changes in:
Prepaid expenses and other assets		104,176			103,787			11,094
Income taxes payable/refundable		(217,833	)		(104,143	)		(62,672	)
Accrued expenses		(59,682	)		(18,376	)		(31,264	)
Net cash provided by (used in) operating activities		487,109			(759,901	)		(956,962	)
Cash Flows From Investing Activities
Capital contributions to subsidiary bank		-			-			(13,000,000	)
Proceeds from sales of AFS securities		-			-			834,952
Net cash used in investing activities		-			-			(12,165,048	)
Cash Flows From Financing Activities
Cash dividends paid on common and preferred stock		(850,000	)		(850,000	)		(672,917	)
Treasury stock purchased		(53,230	)		(6,540	)		(7,515	)
Repayment of advances from subsidiary		-			900			-
Repayment of notes payable		-			-			(1,435,190	)
Proceeds from issuance of preferred stock and warrants		-			-			17,000,000
Net cash provided by (used in) financing activities		(903,230	)		(855,640	)		14,884,378
Increase (decrease) in cash		(416,121	)		(1,615,541	)		1,762,368
Cash, beginning of year		1,197,553			2,813,094			1,050,726
Cash, end of year	$	781,432		$	1,197,553		$	2,813,094