SFC Bank parent, soon to acquire Guaranty, improves profits

QCR Holdings Inc. (Nasdaq: QCRH), the parent company of Springfield First Community Bank that's set to boost its holdings in southwest Missouri with the purchase of Guaranty Bank, recorded positive momentum in its 2021 earnings report.

The Moline, Illinois-based company reported 2021 net income of $99 million, a roughly 63% increase from $60.6 million in 2020, according to a news release.

"We are very pleased with our 2021 financial performance, highlighted by record net income and earnings per share,” said Larry Helling, QCR's CEO, in the release. “Our strong results were driven by robust loan growth of 17% for the year as we capitalized on strengthening economic conditions in our markets, as well as the value that our clients place on relationship-based community banking."

SFC Bank's assets grew to $882.9 million at the end of 2021 from $780 million in 2020, while its deposits rose to $590.2 million from $569 million. The QCR release did not include net income for SFC Bank. However, data on file with the Federal Deposit Insurance Corp. show the Springfield company's profits increased by 52% to $10.5 million for the first nine months of 2021 compared with the same period in 2020.

QCR in November announced its planned acquisition of Guaranty Bank parent company Guaranty Federal Bancshares Inc. (Nasdaq: GFED) in a deal valued at roughly $151.6 million. Through the deal expected to close in the late first quarter or early second quarter, Guaranty will merge with SFC Bank.

Guaranty Bank last week reported full-year earnings of $10.6 million, a 56% increase from 2020.