----

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| (Mark One) | T  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |   |
|------------|------------------------------------------------------------------------------------------------------|--------|

|   | £ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |   |
|--------|-------------------------------------------------------------------------------------------------|--------|

| Delaware                                                       | 43-1792717                        |
|----------------------------------------------------------------|-----------------------------------|
|                                                           |                              |
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
|                                                           |                              |
| 1341 West Battlefield                                          |                              |
| Springfield, Missouri                                          | 65807                             |
| (Address of principal executive offices)                       | (Zip Code)                        |

| Class                                   | Outstanding as of May 6, 2009 |
|-----------------------------------------|-------------------------------|
| Common Stock, Par Value $0.10 per share | 2,620,940 Shares              |

----

----

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| GUARANTY FEDERAL BANCSHARES, INC.                        |
|----------------------------------------------------------|
|                                                     |   |   |   |
|                                                     |   |   |   |
| TABLE OF CONTENTS                                        |
|                                                     |   |   | Page |
| PART I. FINANCIAL INFORMATION                            |
|                                                     |   |   |   |
| Item 1.                                                  | Financial Statements |   |
| Condensed Consolidated Financial Statements (Unaudited): |   |
|                                                     |   | Condensed Consolidated Statements of Financial Condition | 3 |
|                                                     |   | Condensed Consolidated Statements of Operations | 4 |
|                                                     |   | Condensed Consolidated Statements of  Stockholders’ Equity | 5 |
|                                                     |   | Condensed Consolidated Statements of Cash Flows | 7 |
|                                                     |   | Notes to Condensed Consolidated Financial Statements | 8 |
|                                                     |   |   |   |
| Item 2.                                                  | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 14 |
|                                                     |   |   |   |
| Item 3.                                                  | Quantitative and Qualitative Disclosures about Market Risk | 19 |
|                                                     |   |   |   |
| Item 4.                                                  | Controls and Procedures | 20 |
|                                                     |   |   |   |
| PART II. OTHER INFORMATION                               |
|                                                     |   |   |   |
| Item 1.                                                  | Legal Proceedings | 21 |
|                                                     |   |   |   |
| Item 1A.                                       | Risk factors | 21 |
|                                                     |   |   |   |
| Item 2.                                                  | Unregistered Sales of Equity Securities and Use of Proceeds | 21 |
|                                                     |   |   |   |
| Item 3.                                                  | Defaults Upon Senior Securities | 21 |
|                                                     |   |   |   |
| Item 4.                                                  | Submission of Matters to a Vote of Security Holders | 21 |
|                                                     |   |   |   |
| Item 5.                                                  | Other Information | 21 |
|                                                     |   |   |   |
| Item 6.                                                  | Exhibits | 21 |
|                                                     |   |   |   |
| Signatures                                               |   |

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Table of Contents

GUAR

| ASSETS                                                                                                                        |   | 3/31/09 |        |   | 12/31/08 |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|---------|-------------|--------|----------|--------|
| Cash                                                                                                                          |   | $       | 3,640,524   |   |     | $      | 3,826,567 |   |
| Interest-bearing deposits in other financial institutions                                                                     |   |    | 58,740,677  |   |     |   | 11,270,448 |   |
| Cash and cash equivalents                                                                                                     |   |    | 62,381,201  |   |     |   | 15,097,015 |   |
| Interest-bearing deposits                                                                                                     |   |    | 2,689,000   |   |     |   | - |   |
| Available-for-sale securities                                                                                                 |   |    | 113,910,498 |   |     |   | 65,505,339 |   |
| Held-to-maturity securities                                                                                                   |   |    | 532,450     |   |     |   | 556,465 |   |
| Stock in Federal Home Loan Bank, at cost                                                                                      |   |    | 6,730,100   |   |     |   | 6,730,100 |   |
| Mortgage loans held for sale                                                                                                  |   |    | 2,929,264   |   |     |   | 1,933,798 |   |
| Loans receivable, net of allowance for loan losses of March 31, 2009 - $16,233,456 - December 31, 2008 - $16,728,492          |   |    | 534,575,531 |   |     |   | 556,393,243 |   |
| Accrued interest receivable:                                                                                                  |   |    |        |   |     |   |   |   |
| Loans                                                                                                                         |   |    | 1,910,180   |   |     |   | 2,310,062 |   |
| Investments                                                                                                                   |   |    | 410,921     |   |     |   | 322,388 |   |
| Prepaid expenses and other assets                                                                                             |   |    | 3,976,955   |   |     |   | 4,065,359 |   |
| Foreclosed assets held for sale                                                                                               |   |    | 5,897,531   |   |     |   | 5,655,257 |   |
| Premises and equipment                                                                                                        |   |    | 11,971,012  |   |     |   | 11,323,463 |   |
| Income taxes receivable                                                                                                       |   |    | 900,328     |   |     |   | 9,091 |   |
| Deferred income taxes                                                                                                         |   |    | 5,244,633   |   |     |   | 5,768,813 |   |
|                                                                                                                          |   | $       | 754,059,604 |   |     | $      | 675,670,393 |   |
|                                                                                                                          |   |    |        |   |     |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                          |   |    |        |   |     |   |   |   |
|                                                                                                                          |   |    |        |   |     |   |   |   |
| LIABILITIES                                                                                                                   |   |    |        |   |     |   |   |   |
| Deposits                                                                                                                      |   | $       | 530,536,191 |   |     | $      | 447,079,469 |   |
| Federal Home Loan Bank advances                                                                                               |   |    | 111,436,000 |   |     |   | 132,436,000 |   |
| Securities sold under agreements to repurchase                                                                                |   |    | 39,750,000  |   |     |   | 39,750,000 |   |
| Subordinated debentures                                                                                                       |   |    | 15,465,000  |   |     |   | 15,465,000 |   |
| Notes payable                                                                                                                 |   |    | -           |   |     |   | 1,435,190 |   |
| Advances from borrowers for taxes and insurance                                                                               |   |    | 304,362     |   |     |   | 166,327 |   |
| Accrued expenses and other liabilities                                                                                        |   |    | 838,763     |   |     |   | 448,226 |   |
| Accrued interest payable                                                                                                      |   |    | 1,685,812   |   |     |   | 1,577,279 |   |
|                                                                                                                          |   |    | 700,016,128 |   |     |   | 638,357,491 |   |
|                                                                                                                          |   |    |        |   |     |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                 |   |    | -           |   |     |   | - |   |
|                                                                                                                          |   |    |        |   |     |   |   |   |
| STOCKHOLDERS' EQUITY                                                                                                          |   |    |        |   |     |   |   |   |
| Capital Stock:                                                                                                                |   |    |        |   |     |   |   |   |
| Series A preferred stock, $0.01 par value; authorized 2,000,000 shares; issued and outstanding March 31, 2009 - 17,000 shares |   |    | 15,668,116  |   |     |   | - |   |
| Common stock, $0.10 par value; authorized 10,000,000 shares; issued March 31, 2009 and December 31, 2008 - 6,779,800 shares;  |   |    | 677,980     |   |     |   | 677,980 |   |
| Common stock warrants; March 31, 2009 - 459,459 shares                                                                        |   |    | 1,377,811   |   |     |   | - |   |
| Additional paid-in capital                                                                                                    |   |    | 58,531,989  |   |     |   | 58,535,159 |   |
| Unearned ESOP shares                                                                                                          |   |    | (831,930    | )      |     |   | (888,930 | ) |
| Retained earnings, substantially restricted                                                                                   |   |    | 38,334,475  |   |     |   | 39,114,189 |   |
| Accumulated other comprehensive income                                                                                        |   |    |        |   |     |   |   |   |
| Unrealized appreciation on available-for-sale securities and effect of interest rate swaps, net of income taxes               |   |    | 2,098,389   |   |     |   | 1,687,858 |   |
|                                                                                                                          |   |    | 115,856,830 |   |     |   | 99,126,256 |   |
| Treasury stock, at cost; March 31, 2009 and December 31, 2008 - 4,077,567 shares                                              |   |    | (61,813,354 | )      |     |   | (61,813,354 | ) |
|                                                                                                                          |   |    | 54,043,476  |   |     |   | 37,312,902 |   |
|                                                                                                                          |   | $       | 754,059,604 |   |     | $      | 675,670,393 |   |

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Table of Contents

GUA

|                                                |   | 3/31/2009 |      |   | 3/31/2008 |   |
|-----------------------------------------------------|--------|-----------|-----------|--------|-----------|--------|
| Interest Income                                     |   |      |      |   |      |   |
| Loans                                               |   | $         | 7,444,709 |   |      | $      | 8,602,216 |   |
| Investment securities                               |   |      | 829,396   |   |      |   | 575,165 |   |
| Other                                               |   |      | 49,196    |   |      |   | 53,652 |   |
|                                                |   |      | 8,323,301 |   |      |   | 9,231,033 |   |
| Interest Expense                                    |   |      |      |   |      |   |   |   |
| Deposits                                            |   |      | 4,035,306 |   |      |   | 3,986,532 |   |
| Federal Home Loan Bank advances                     |   |      | 782,250   |   |      |   | 733,289 |   |
| Subordinated debentures                             |   |      | 255,946   |   |      |   | 255,946 |   |
| Other                                               |   |      | 234,489   |   |      |   | 225,299 |   |
|                                                |   |      | 5,307,991 |   |      |   | 5,201,066 |   |
| Net Interest Income                                 |   |      | 3,015,310 |   |      |   | 4,029,967 |   |
| Provision for Loan Losses                           |   |      | 980,000   |   |      |   | 820,000 |   |
| Net Interest Income After Provision for Loan Losses |   |      | 2,035,310 |   |      |   | 3,209,967 |   |
| Noninterest Income                                  |   |      |      |   |      |   |   |   |
| Service charges                                     |   |      | 425,189   |   |      |   | 459,400 |   |
| Other fees                                          |   |      | 11,345    |   |      |   | 6,398 |   |
| Gain on sale of loans                               |   |      | 355,410   |   |      |   | 231,077 |   |
| Loss on foreclosed assets                           |   |      | (150,712  | )      |      |   | (13,202 | ) |
| Other income                                        |   |      | 167,740   |   |      |   | 198,178 |   |
|                                                |   |      | 808,972   |   |      |   | 881,851 |   |
| Noninterest Expense                                 |   |      |      |   |      |   |   |   |
| Salaries and employee benefits                      |   |      | 2,032,460 |   |      |   | 1,891,462 |   |
| Occupancy                                           |   |      | 481,264   |   |      |   | 387,588 |   |
| FDIC deposit insurance premiums                     |   |      | 274,530   |   |      |   | 62,499 |   |
| Data processing                                     |   |      | 110,602   |   |      |   | 89,816 |   |
| Advertising                                         |   |      | 90,976    |   |      |   | 99,999 |   |
| Other expense                                       |   |      | 754,733   |   |      |   | 570,044 |   |
|                                                |   |      | 3,744,565 |   |      |   | 3,101,408 |   |
| Income (Loss) Before Income Taxes (Credits)         |   |      | (900,283  | )      |      |   | 990,410 |   |
| Provision (Credit) for Income Taxes                 |   |      | (308,163  | )      |      |   | 373,552 |   |
| Net Income (Loss)                                   |   |      | (592,120  | )      |      |   | 616,858 |   |
| Preferred Stock Dividends and Discount Accretion    |   |      | 187,594   |   |      |   | - |   |
| Net Income (Loss) Available to Common Shareholders  |   | $         | (779,714  | )      |      | $      | 616,858 |   |
|                                                |   |      |      |   |      |   |   |   |
| Basic Earnings (Loss) Per Common Share              |   | $         | (0.30     | )      |      | $      | 0.24 |   |
| Diluted Earnings (Loss) Per Common Share            |   | $         | (0.30     | )      |      | $      | 0.23 |   |

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Table of Contents

GUARA

|                                                                                                                      |   | Preferred Stock |       |   | Common Stock |   |    | Common Stock Warrants |   |   | Additional Paid-In Capital |   |   | Unearned ESOP Shares |       |   | Treasury Stock |   |     | Retained Earnings |   |   | Accumulated Other Comprehensive Income |   |   | Total  |       |
|---------------------------------------------------------------------------------------------------------------------------|--------|-----------------|------------|--------|--------------|--------|---------|-----------------------|--------|--------|----------------------------|--------|--------|----------------------|------------|--------|----------------|--------|----------|-------------------|--------|--------|----------------------------------------|--------|--------|--------|------------|
| Balance, January 1, 2009                                                                                                  |   | $               | -          |   |         | $      | 677,980 |                  |   | $      | -                          |   |   | $                    | 58,535,159 |   |           | $      | (888,930 | )                 |   | $      | (61,813,354                            | )      |   | $      | 39,114,189 |   |   | $ | 1,687,858 |   |   | $ | 37,312,902 |   |
| Comprehensive loss                                                                                                        |   |            |       |   |         |   |    |                  |   |   |                       |   |   |                 |       |   |           |   |     |              |   |   |                                   |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                  |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | (592,120   | ) |   |   | - |   |   |   | (592,120 | ) |
| Change in unrealized appreciation on available-for-sale securities and effect of interest rate swaps, net of income taxes |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | -          |   |   |   | 410,531 |   |   |   | 410,531 |   |
| Total comprehensive loss                                                                                                  |   |            |       |   |         |   |    |                  |   |   |                       |   |   |                 |       |   |           |   |     |              |   |   |                                   |   |   |   |       |   |   |   |   |   |   |   | (181,589 | ) |
| Preferred stock issued                                                                                                    |   |            | 15,622,189 |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   |       |   |   |   | - |   |   |   | 15,622,189 |   |
| Common stock warrants issued                                                                                              |   |            | -          |   |         |   | -       |                  |   |   | 1,377,811                  |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | -          |   |   |   | - |   |   |   | 1,377,811 |   |
| Preferred stock discount accretion                                                                                        |   |            | 45,927     |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | (45,927    | ) |   |   | - |   |   |   | - |   |
| Preferred stock dividends accrued (5%)                                                                                    |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | (141,667   | ) |   |   | - |   |   |   | (141,667 | ) |
| Stock award plans                                                                                                         |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | 24,426     |   |           |   | -        |              |   |   | -                                      |   |   |   | -          |   |   |   | - |   |   |   | 24,426 |   |
| Release of ESOP shares                                                                                                    |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | (27,596    | )      |           |   | 57,000   |              |   |   | -                                      |   |   |   | -          |   |   |   | - |   |   |   | 29,404 |   |
| Balance, March 31, 2009                                                                                                   |   | $               | 15,668,116 |   |         | $      | 677,980 |                  |   | $      | 1,377,811                  |   |   | $                    | 58,531,989 |   |           | $      | (831,930 | )                 |   | $      | (61,813,354                            | )      |   | $      | 38,334,475 |   |   | $ | 2,098,389 |   |   | $ | 54,043,476 |   |

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Table of Contents

|                                                                                    |   | Common Stock |    |   | Additional Paid-In Capital |   |       | Unearned ESOP Shares |   |   | Treasury Stock |   |   | Retained Earnings |        |   | Accumulated Other Comprehensive Income |   |       | Total  |   |
|-----------------------------------------------------------------------------------------|--------|--------------|---------|--------|----------------------------|--------|------------|----------------------|--------|--------|----------------|--------|--------|-------------------|-------------|--------|----------------------------------------|--------|------------|--------|--------|
| Balance, January 1, 2008                                                                |   | $            | 673,649 |   |                       |   | 57,571,929 |                 |   |   | (1,116,930     | )      |   |              | (60,348,204 | )      |                                   |   | 45,402,449 |   |   |   | 503,767 |   |   |   | 42,686,660 |   |
| Comprehensive income                                                                    |   |         |    |   |                       |   |       |                 |   |   |           |   |   |              |        |   |                                   |   |       |   |   |   |   |   |   |   |   |   |
| Net income                                                                              |   |         | -       |   |                       |   | -          |                 |   |   | -              |   |   |              | -           |   |                                   |   | 616,858    |   |   |   | - |   |   |   | 616,858 |   |
| Change in unrealized appreciation on available-for-sale securities, net of income taxes |   |         | -       |   |                       |   | -          |                 |   |   | -              |   |   |              | -           |   |                                   |   | -          |   |   |   | 98,558 |   |   |   | 98,558 |   |
| Total comprehensive income                                                              |   |         |    |   |                       |   |       |                 |   |   |           |   |   |              |        |   |                                   |   |       |   |   |   |   |   |   |   | 715,416 |   |
| Dividends ($0.18 per share)                                                             |   |         | -       |   |                       |   | -          |                 |   |   | -              |   |   |              | -           |   |                                   |   | (464,517   | )      |   |   | - |   |   |   | (464,517 | ) |
| Stock award plans                                                                       |   |         | -       |   |                       |   | 24,304     |                 |   |   | -              |   |   |              | -           |   |                                   |   | -          |   |   |   | - |   |   |   | 24,304 |   |
| Stock options exercised                                                                 |   |         | 1,235   |   |                       |   | 163,887    |                 |   |   | -              |   |   |              | -           |   |                                   |   | -          |   |   |   | - |   |   |   | 165,122 |   |
| Release of ESOP shares                                                                  |   |         | -       |   |                       |   | 93,072     |                 |   |   | 57,000         |   |   |              | -           |   |                                   |   | -          |   |   |   | - |   |   |   | 150,072 |   |
| Treasury stock purchased                                                                |   |         | -       |   |                       |   | -          |                 |   |   | -              |   |   |              | (510,914    | )      |                                   |   | -          |   |   |   | - |   |   |   | (510,914 | ) |
| Balance, March 31, 2008                                                                 |   | $            | 674,884 |   |                       |   | 57,853,192 |                 |   |   | (1,059,930     | )      |   |              | (60,859,118 | )      |                                   |   | 45,554,790 |   |   |   | 602,325 |   |   |   | 42,766,143 |   |

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Table of Contents

GUAR

|                                                               |   | 3/31/2009 |        |   | 3/31/2008 |   |
|--------------------------------------------------------------------|--------|-----------|-------------|--------|-----------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES                               |   |      |        |   |      |   |
| Net income (loss)                                                  |   | $         | (592,120    | )      |      | $      | 616,858 |   |
| Items not requiring (providing) cash:                              |   |      |        |   |      |   |   |   |
| Deferred income taxes                                              |   |      | 283,074     |   |      |   | 202,155 |   |
| Depreciation                                                       |   |      | 249,571     |   |      |   | 209,519 |   |
| Provision for loan losses                                          |   |      | 980,000     |   |      |   | 820,000 |   |
| Gain on loans and investment securities                            |   |      | (355,410    | )      |      |   | (231,077 | ) |
| Loss on sale of foreclosed assets                                  |   |      | 31,636      |   |      |   | 453 |   |
| Accretion of gain on termination of interest rate swaps            |   |      | (254,373    | )      |      |   | - |   |
| Amortization of deferred income, premiums and discounts            |   |      | (1,068      | )      |      |   | 3,862 |   |
| Stock award plan expense                                           |   |      | 24,426      |   |      |   | 24,304 |   |
| Origination of loans held for sale                                 |   |      | (24,292,585 | )      |      |   | (14,332,451 | ) |
| Proceeds from sale of loans held for sale                          |   |      | 23,652,529  |   |      |   | 15,766,701 |   |
| Release of ESOP shares                                             |   |      | 29,404      |   |      |   | 150,072 |   |
| Changes in:                                                        |   |      |        |   |      |   |   |   |
| Accrued interest receivable                                        |   |      | 311,349     |   |      |   | 864,701 |   |
| Prepaid expenses and other assets                                  |   |      | 88,404      |   |      |   | 223,713 |   |
| Accounts payable and accrued expenses                              |   |      | 357,403     |   |      |   | 107,143 |   |
| Income taxes receivable                                            |   |      | (891,237    | )      |      |   | (878,381 | ) |
| Net cash provided by (used in) operating activities                |   |      | (378,997    | )      |      |   | 3,547,572 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                               |   |      |        |   |      |   |   |   |
| Net (increase) decrease in loans                                   |   |      | 19,946,469  |   |      |   | (18,162,773 | ) |
| Principal payments on available-for-sale securities                |   |      | 1,823,631   |   |      |   | 398,106 |   |
| Principal payments on held-to-maturity securities                  |   |      | 24,015      |   |      |   | 23,857 |   |
| Proceeds from maturities of available-for-sale securities          |   |      | -           |   |      |   | 1,550,000 |   |
| Purchase of premises and equipment                                 |   |      | (897,120    | )      |      |   | (369,302 | ) |
| Purchase of available-for-sale securities                          |   |      | (54,904,218 | )      |      |   | (50,306,886 | ) |
| Proceeds from sale of available-for-sale securities                |   |      | 5,566,848   |   |      |   | - |   |
| Purchase of interest-bearing deposits                              |   |      | (2,689,000  | )      |      |   | - |   |
| Purchase of FHLB stock                                             |   |      | -           |   |      |   | (1,046,361 | ) |
| Proceeds from sale of foreclosed assets                            |   |      | 632,991     |   |      |   | 247,938 |   |
| Net cash used in investing activities                              |   |      | (30,496,384 | )      |      |   | (67,665,421 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES                               |   |      |        |   |      |   |   |   |
| Stock options exercised                                            |   |      | -           |   |      |   | 165,122 |   |
| Cash dividends paid                                                |   |      | -           |   |      |   | (464,781 | ) |
| Net increase in demand deposits, NOW accounts and savings accounts |   |      | 100,832,660 |   |      |   | 7,212,287 |   |
| Net increase (decrease) in certificates of deposit                 |   |      | (17,375,938 | )      |      |   | 5,700,973 |   |
| Net increase in securities sold under agreements to repurchase     |   |      | -           |   |      |   | 29,900,705 |   |
| Proceeds from FHLB advances                                        |   |      | -           |   |      |   | 570,300,000 |   |
| Repayments of FHLB advances                                        |   |      | (21,000,000 | )      |      |   | (548,450,000 | ) |
| Proceeds from issuance of notes payable                            |   |      | -           |   |      |   | 717,000 |   |
| Repayments of notes payable                                        |   |      | (1,435,190  | )      |      |   | - |   |
| Advances from borrowers for taxes and insurance                    |   |      | 138,035     |   |      |   | 154,418 |   |
| Proceeds from preferred stock and warrants                         |   |      | 17,000,000  |   |      |   | - |   |
| Treasury stock purchased                                           |   |      | -           |   |      |   | (510,914 | ) |
| Net cash provided by financing activities                          |   |      | 78,159,567  |   |      |   | 64,724,810 |   |
| INCREASE  IN CASH AND CASH EQUIVALENTS                   |   |      | 47,284,186  |   |      |   | 606,961 |   |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                     |   |      | 15,097,015  |   |      |   | 12,046,202 |   |
| CASH AND CASH EQUIVALENTS, END OF PERIOD                           |   | $         | 62,381,201  |   |      | $      | 12,653,163 |   |

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NOT

|                                      |   | Number of shares       |    |   |                       |   |
|-------------------------------------------|--------|------------------------|---------|--------|----------------------------|--------|
|                                      |   | Incentive Stock Option |    |   | Non-Incentive Stock Option |   |   | Weighted Average Exercise Price |   |
|                                      |   |                   |    |   |                       |   |   |   |   |
| Balance outstanding as of January 1, 2009 |   |                   | 108,250 |   |                       |   | 116,704 |   |   | $ | 23.29 |   |
| Granted                                   |   |                   | 37,500  |   |                       |   | 20,000 |   |   |   | 5.30 |   |
| Exercised                                 |   |                   | -       |   |                       |   | - |   |   |   | - |   |
| Forfeited                                 |   |                   | -       |   |                       |   | - |   |   |   | - |   |
| Balance outstanding as of March 31, 2009  |   |                   | 145,750 |   |                       |   | 136,704 |   |   |   | 19.63 |   |
| Options exercisable as of March 31, 2009  |   |                   | 48,950  |   |                       |   | 82,704 |   |   |   | 20.39 |   |

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|                                         |   | For three months ended March 31, 2009   |     |
|----------------------------------------------|--------|-----------------------------------------|----------|
|                                         |   | Loss Available to Common Stockholders   |     |   | Average Common Shares Outstanding |   |   | Per Common Share |   |
| Basic Loss per Common Share                  |   | $                                       | (779,714 | ) |   |   | 2,615,303 |   |   |   | (0.30 | ) |
| Effect of Dilutive Securities: Stock Options |   |                                    |     |   |   |   | - |   |   |   |   |   |
| Diluted Loss per Common Share                |   | $                                       | (779,714 | ) |   |   | 2,615,303 |   |   |   | (0.30 | ) |
|                                         |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                         |   | For three months ended March 31, 2008   |     |
|                                         |   | Income Available to Common Stockholders |     |   | Average Common Shares Outstanding |   |   | Per Common Share |   |
| Basic Earnings per Share                     |   | $                                       | 616,858  |   |   |   | 2,605,280 |   |   |   | 0.24 |   |
| Effect of Dilutive Securities: Stock Options |   |                                    |     |   |   |   | 42,168 |   |   |   |   |   |
| Diluted Earnings per Share                   |   | $                                       | 616,858  |   |   |   | 2,647,448 |   |   |   | 0.23 |   |

|                                                  |   | 3/31/2009 |     |   | 3/31/2008 |   |
|-------------------------------------------------------|--------|-----------|----------|--------|-----------|--------|
| Unrealized gains on available-for-sale securities     |   | $         | 906,010  |   |      | $      | 156,441 |   |
| Accretion of gains on interest rate swaps into income |   |      | (254,373 | )      |      |   | - |   |
| Other comprehensive income, before tax effect         |   |      | 651,637  |   |      |   | 156,441 |   |
| Tax expense                                           |   |      | 241,106  |   |      |   | 57,883 |   |
| Other comprehensive income                            |   | $         | 410,531  |   |      | $      | 98,558 |   |

|                                             |   | 3/31/2009 |      |   | 12/31/2008 |   |
|--------------------------------------------------|--------|-----------|-----------|--------|------------|--------|
|                                             |   |      |      |   |       |   |
| Unrealized gain on available-for-sale securities |   | $         | 2,058,895 |   |       | $      | 1,152,885 |   |
| Unrealized gain on interest rate swaps           |   |      | 1,271,881 |   |       |   | 1,526,254 |   |
|                                             |   |      | 3,330,776 |   |       |   | 2,679,139 |   |
| Tax effect                                       |   |      | 1,232,387 |   |       |   | 991,281 |   |
| Net of tax amount                                |   | $         | 2,098,389 |   |       | $      | 1,687,858 |   |

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| 3/31/2009                     |   |           |   |   |           |   |    |           |   |   |             |   |
|-------------------------------|--------|----------------|--------|--------|----------------|--------|---------|----------------|--------|--------|------------------|--------|
|                          |   | Level 1 inputs |   |   | Level 2 inputs |   |    | Level 3 inputs |   |   | Total fair value |   |
| Available-for-sale securities |   | $              | 653    |   |           |   | 113,257 |           |   |   | -                |   |   | $ | 113,910 |   |
|                          |   |           |   |   |           |   |    |           |   |   |             |   |   |   |   |   |
| 12/31/2008                    |   |           |   |   |           |   |    |           |   |   |             |   |   |   |   |   |
|                          |   | Level 1 inputs |   |   | Level 2 inputs |   |    | Level 3 inputs |   |   | Total fair value |   |
| Available-for-sale securities |   | $              | 561    |   |           |   | 64,944  |           |   |   | -                |   |   | $ | 65,505 |   |

| 3/31/2009      |   |           |   |   |           |   |   |           |   |   |             |   |
|----------------|--------|----------------|--------|--------|----------------|--------|--------|----------------|--------|--------|------------------|--------|
|           |   | Level 1 inputs |   |   | Level 2 inputs |   |   | Level 3 inputs |   |   | Total fair value |   |
| Impaired loans |   | $              | -      |   |           |   | -      |           |   |   | 32,034           |   |   | $ | 32,034 |   |
|           |   |           |   |   |           |   |   |           |   |   |             |   |   |   |   |   |
| 12/31/2008     |   |           |   |   |           |   |   |           |   |   |             |   |   |   |   |   |
|           |   | Level 1 inputs |   |   | Level 2 inputs |   |   | Level 3 inputs |   |   | Total fair value |   |
| Impaired loans |   | $              | -      |   |           |   | -      |           |   |   | 32,706           |   |   | $ | 32,706 |   |

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Item 2.

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|                                                                    |   | Three Months ended 3/31/2009 |    |   | Three Months ended 3/31/2008 |   |
|-------------------------------------------------------------------------|--------|------------------------------|---------|--------|------------------------------|--------|
|                                                                    |   | Average Balance              |    |   | Interest                     |   |   | Yield / Cost |   |   | Average Balance |   |   | Interest |   |   | Yield / Cost |   |
| ASSETS                                                                  |   |                         |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning:                                                       |   |                         |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                   |   | $                            | 563,137 |   |                         | $      | 7,445 |   |   |   | 5.29 | % |   | $ | 520,562 |   |   | $ | 8,602 |   |   |   | 6.61 | % |
| Investment securities                                                   |   |                         | 73,437  |   |                         |   | 829 |   |   |   | 4.52 | % |   |   | 44,073 |   |   |   | 575 |   |   |   | 5.22 | % |
| Other assets                                                            |   |                         | 88,665  |   |                         |   | 49 |   |   |   | 0.22 | % |   |   | 6,285 |   |   |   | 54 |   |   |   | 3.44 | % |
| Total interest-earning                                                  |   |                         | 725,239 |   |                         |   | 8,323 |   |   |   | 4.59 | % |   |   | 570,920 |   |   |   | 9,231 |   |   |   | 6.47 | % |
| Noninterest-earning                                                     |   |                         | 20,889  |   |                         |   |   |   |   |   |   |   |   |   | 19,942 |   |   |   |   |   |   |   |   |   |
|                                                                    |   | $                            | 746,128 |   |                         |   |   |   |   |   |   |   |   | $ | 590,862 |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                              |   |                         |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing:                                                       |   |                         |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                        |   | $                            | 11,968  |   |                         |   | 27 |   |   |   | 0.90 | % |   | $ | 12,642 |   |   |   | 51 |   |   |   | 1.61 | % |
| Transaction accounts                                                    |   |                         | 174,000 |   |                         |   | 1,144 |   |   |   | 2.63 | % |   |   | 99,107 |   |   |   | 562 |   |   |   | 2.27 | % |
| Certificates of deposit                                                 |   |                         | 309,175 |   |                         |   | 2,864 |   |   |   | 3.71 | % |   |   | 276,797 |   |   |   | 3,364 |   |   |   | 4.86 | % |
| FHLB Advances                                                           |   |                         | 114,005 |   |                         |   | 782 |   |   |   | 2.74 | % |   |   | 84,561 |   |   |   | 733 |   |   |   | 3.47 | % |
| Securities sold under agreements to repurchase                          |   |                         | 39,750  |   |                         |   | 232 |   |   |   | 2.33 | % |   |   | 29,861 |   |   |   | 224 |   |   |   | 3.00 | % |
| Subordinated debentures                                                 |   |                         | 15,465  |   |                         |   | 256 |   |   |   | 6.62 | % |   |   | 15,465 |   |   |   | 257 |   |   |   | 6.65 | % |
| Other borrowed funds                                                    |   |                         | 462     |   |                         |   | 3 |   |   |   | 2.60 | % |   |   | 919 |   |   |   | 10 |   |   |   | 4.35 | % |
| Total interest-bearing                                                  |   |                         | 664,825 |   |                         |   | 5,308 |   |   |   | 3.19 | % |   |   | 519,352 |   |   |   | 5,201 |   |   |   | 4.01 | % |
| Noninterest-bearing                                                     |   |                         | 31,926  |   |                         |   |   |   |   |   |   |   |   |   | 28,300 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                       |   |                         | 696,751 |   |                         |   |   |   |   |   |   |   |   |   | 547,652 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                              |   |                         | 49,377  |   |                         |   |   |   |   |   |   |   |   |   | 43,210 |   |   |   |   |   |   |   |   |   |
|                                                                    |   | $                            | 746,128 |   |                         |   |   |   |   |   |   |   |   | $ | 590,862 |   |   |   |   |   |   |   |   |   |
| Net earning balance                                                     |   | $                            | 60,414  |   |                         |   |   |   |   |   |   |   |   | $ | 51,568 |   |   |   |   |   |   |   |   |   |
| Earning yield less costing rate                                         |   |                         |    |   |                         |   |   |   |   |   | 1.40 | % |   |   |   |   |   |   |   |   |   |   | 2.46 | % |
| Net interest income, and net interest margin on interest earning assets |   |                         |    |   |                         | $      | 3,015 |   |   |   | 1.66 | % |   |   |   |   |   | $ | 4,030 |   |   |   | 2.82 | % |
| Ratio of interest-earning assets to interest-bearing liabilities        |   |                         |    |   |                         |   | 109 | % |   |   |   |   |   |   |   |   |   |   | 110 | % |   |   |   |   |

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|                                                       |   | 3/31/2009 |   |   | 12/31/2008 |   |   | 12/31/2007 |   |
|------------------------------------------------------------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|
| Nonperforming loans                                        |   | $         | 22,873 |   |       | $      | 20,694 |       |   | $ | 7,254 |   |
| Real estate acquired in settlement of loans                |   |      | 5,897  |   |       |   | 5,655  |       |   |   | 727 |   |
| Total nonperforming assets                                 |   | $         | 28,770 |   |       | $      | 26,349 |       |   | $ | 7,981 |   |
|                                                       |   |      |   |   |       |   |   |       |   |   |   |   |
| Total nonperforming assets as a percentage of total assets |   |      | 3.82   | %      |       |   | 3.90   | %          |   |   | 1.41 | % |
| Allowance for loan losses                                  |   | $         | 16,233 |   |       | $      | 16,728 |       |   | $ | 5,963 |   |
| Allowance for loan losses as a percentage of gross loans   |   |      | 2.95   | %      |       |   | 2.92   | %          |   |   | 1.15 | % |

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Item 3.

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| BP Change |   |   | Estimated Net Portfolio Value |   |   | NPV as % of PV of Assets |   |
|-----------|--------|--------|-------------------------------|--------|--------|--------------------------|--------|
| in Rates  |   |   | $ Amount                      |   |   | $ Change                 |   |   | % Change |   |   | NPV Ratio |   |   | Change |   |
| +200      |   |   |                          | 52,384 |   |                     |   | (3,199 | ) |   |   | -6 | % |   |   | 7.02 | % |   |   | -0.31 | % |
| +100      |   |   |                          | 54,104 |   |                     |   | (1,480 | ) |   |   | -3 | % |   |   | 7.19 | % |   |   | -0.14 | % |
| NC        |   |   |                          | 55,583 |   |                     |   | - |   |   |   | - |   |   |   | 7.33 | % |   |   | - |   |
| -100      |   |   |                          | 57,773 |   |                     |   | 2,189 |   |   |   | 4 | % |   |   | 7.55 | % |   |   | 0.22 | % |
| -200      |   |   |                          | 62,024 |   |                     |   | 6,440 |   |   |   | 12 | % |   |   | 8.03 | % |   |   | 0.70 | % |

Item 4. Controls 

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| Item 1. | Legal Proceedings |
|---------|-------------------|

| Item 1A. | Risk Factors |
|----------|--------------|

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
|---------|-------------------------------------------------------------|

| Item 3. | Defaults Upon Senior Securities |
|---------|---------------------------------|

| Item 4. | Submission of Matters to a Vote of Common Security Holders |
|---------|------------------------------------------------------------|

| Item 5. | Other Information |
|---------|-------------------|

| Item 6. | Exhibits |
|---------|----------|

|  | 3(i).1 | Restated Certificate of Incorporation of Guaranty Federal Bancshares, Inc. (1) |
|--|--------|--------------------------------------------------------------------------------|

|  | 3(i).2 | Certificate of Designations for the Series A Preferred Stock (2) |
|--|--------|------------------------------------------------------------------|

|  | 4.1 | Form of Certificate for the Series A Preferred Stock (3) |
|--|-----|---------------------------------------------------------------|

|  | 4.2 | Warrant to Purchase Common Stock (4) |
|--|-----|--------------------------------------|

|  | 10.1 | Letter Agreement dated January 30, 2009, including Securities Purchase Agreement – standard terms incorporated by reference therein, between the Company and the United States Department of the Treasury, with respect to the issuance and sale of Series A Preferred Stock and the Warrant (5) |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.2 | Amendment and Waiver Regarding Compensation Arrangements dated January 28, 2009 by and among the Bank, the Company and its Senior Executive Officers* (6) |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.3 | Written Description of 2009 Executive Incentive Compensation Annual Plan – President and Chief Executive Officer* (7) |
|--|------|-----------------------------------------------------------------------------------------------------------------------------|

|  | 10.4 | Written Description of 2009 Executive Incentive Compensation Annual Plan – Chief Financial Officer and Chief Operating Officer* (8) |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.5 | Written Description of 2009 Executive Incentive Compensation Annual Plan – Chief Lending Officer* (9) |
|--|------|-------------------------------------------------------------------------------------------------------------|

|  | 11. | Statement re: computation of per share earnings (set forth in “Note 4: Earnings Per Common Share” of the Notes to Condensed Consolidated Financial Statement (unaudited) |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 31(i).1 | Certification of the Principal Executive Officer pursuant to Rule 13a -14(a) of the Exchange Act |
|--|---------|--------------------------------------------------------------------------------------------------|

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|   | 31(i).2 | Certification of the Principal Financial Officer pursuant to Rule 13a - 14(a) of the Exchange Act |
|--------|---------|---------------------------------------------------------------------------------------------------|

|  | 32.1 | CEO certification pursuant to 18 U.S.C. Section 1350 |
|--|------|------------------------------------------------------|

|  | 32.2 | CFO certification pursuant to 18 U.S.C. Section 1350 |
|--|------|------------------------------------------------------|

| (1) | Filed as an exhibit to the Annual Report on Form 10-K for the fiscal year ended June 30, 1998 (SEC File No. 0-23325) and incorporated herein by reference. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Filed as Exhibit 3.1 to the Current Report on Form 8-K filed by the Registrant on February 3, 2009 and incorporated herein by reference. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Filed as Exhibit 4.1 to the Current Report on Form 8-K filed by the Registrant on February 3, 2009 and incorporated herein by reference. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Filed as Exhibit 4.2 to the Current Report on Form 8-K filed by the Registrant on February 3, 2009 and incorporated herein by reference. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Filed as Exhibit 10.1 to the Current Report on Form 8-K filed by the Registrant on February 3, 2009 and incorporated herein by reference. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Filed as Exhibit 10.2 to the Current Report on Form 8-K filed by the Registrant on February 3, 2009 and incorporated herein by reference. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Filed as Exhibit 10.23 to the Current Report on Form 8-K filed by the Registrant on February 9, 2009 and incorporated herein by reference. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Filed as Exhibit 10.24 to the Current Report on Form 8-K filed by the Registrant on February 9, 2009 and incorporated herein by reference. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Filed as Exhibit 10.25 to the Current Report on Form 8-K filed by the Registrant on February 9, 2009 and incorporated herein by reference. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

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SIGN

| Guaranty Federal Bancshares, Inc.                         |   |         |
|-----------------------------------------------------------|--------|--------------|
|                                                      |   |         |
|                                                      |   |         |
|                                                      |   |         |
| Signature and Title                                       |   | Date         |
|                                                      |   |         |
| /s/ Shaun A. Burke                                        |   | May 15, 2009 |
| Shaun A. Burke                                            |   |         |
| President and Chief Executive Officer                     |   |         |
| (Principal Executive Officer and Duly Authorized Officer) |   |         |
|                                                      |   |         |
|                                                      |   |         |
|                                                      |   |         |
| /s/ Carter Peters                                         |   | May 15, 2009 |
| Carter Peters                                             |   |         |
| Executive Vice President and Chief Financial Officer      |   |         |
| (Principal Financial and Accounting Officer)              |   |         |

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