Exhibit 99.1
(GS Financial Logo)
FOR IMMEDIATE RELEASE
July 19, 2004
Contact: Donald C. Scott, President
Phone: (504) 457-6220
GS Financial Corp. Announces First Quarter Earnings
(NASDAQ: GSLA)
Metairie, Louisiana - Donald C. Scott, President of GS Financial Corp. (the “Company”), the holding company for Guaranty Savings and Homestead Association (the “Association”), announced earnings for the quarter ended June 30, 2004 of $94,000, or $.08 per share, compared to $6,000, or $.01 per share, for the quarter ended June 30, 2003. Earnings for the first six months of 2004 were $205,000, or $.18 per share, compared to $381,000, or $.31 per share, for the first six months of 2003.
Net interest income for the quarter ended June 30, 2004 was $1.3 million compared to $879,000 for the same period in 2003. The Company’s net interest margin increased to 2.55% for the second quarter of 2004 from 1.70% for 2003.
Overall earnings for the quarter were adversely affected by $143,000 in realized losses sustained on securities transactions. Net income before securities transactions and income tax expense were $226,000 for the second quarter and $346,000 for the first six months of 2004, compared with net losses of $271,000 and $378,000 for the same time periods of 2003.
Total assets of the company at June 30, 2004 amounted to $209.5 million compared to $214.7 million at December 31, 2003. The reduction in assets is due to a $1.6 million decrease in the market value of the Company’s investment in securities and the utilization of $3.7 million of cash to make scheduled principal reductions on FHLB advances.
There has been significant growth in the Company’s loan portfolio in the first six months of 2004. Net loans at June 30, 2004 were $87.1 million compared to $77.4 million at December 31, 2003. After continual increases over the past two years and into the beginning of 2004, deposit accounts began to decline in the second quarter. At June 30, 2004 total deposits amounted to $141.8 million compared to $142.1 million at December 31, 2003.
GS Financial Corp. |
Condensed Consolidated Statements of Financial Condition |
(Unaudited) |
| | |
($ in thousands) | June 30, 2004 | December 31, 2003 |
ASSETS | | |
Cash & Due from Banks | $ 1,350 | $ 1,899 |
Interest Bearing Deposits | 2,548 | 4,507 |
Federal Funds Sold | 1,486 | 4,965 |
Securities Available-for-Sale, at Fair Value | 110,194 | 119,271 |
Loans, Net | 87,074 | 77,367 |
Accrued Interest Receivable | 615 | 547 |
Premises & Equipment, Net | 2,536 | 2,591 |
Stock in Federal Home Loan Bank, at Cost | 2,418 | 2,726 |
Foreclosed Assets | 417 | 52 |
Real Estate Held-for-Investment, Net | 502 | 511 |
Other Assets | 356 | 278 |
Total Assets | $ 209,496 | $ 214,714 |
| | | |
LIABILITIES | | |
Interest Bearing Deposits | $ 140,730 | $ 140,953 |
Non-Interest Bearing Deposits | 1,044 | 1,155 |
FHLB Advances | 38,464 | 42,135 |
Other Liabilities | 864 | 1,163 |
Total Liabilities | 181,102 | 185,406 |
| | | |
STOCKHOLDERS' EQUITY | | |
Common Stock & Additional Paid in Capital | $ 34,395 | $ 34,265 |
Unearned ESOP Stock | (661) | (802) |
Unearned RRP Trust Stock | (1,039) | (1,059) |
Treasury Stock | (31,925) | (31,804) |
Retained Earnings | 28,523 | 28,553 |
Accumulated Other Comprehensive Income | (899) | 155 |
Total Stockholders' Equity | 28,394 | 29,308 |
Total Liabilities & Stockholders' Equity | $ 209,496 | $ 214,714 |
| | | |
Selected Asset Quality Data | | |
Total Non Performing Assets | $ 1,176 | $ 651 |
Non Performing Assets to Total Assets | 0.56% | 0.30% |
Allowance for Loan Losses to Non Performing Assets | 51.88% | 74.19% |
GS Financial Corp. |
Condensed Consolidated Statements of Income |
(Unaudited) |
| | | | | |
| For the three months ended June 30, | For the six months ended June 30, |
($ in thousands, except per share data) | 2004 | 2003 | 2004 | 2003 |
Interest Income | $ 2,717 | $ 2,492 | $ 5,400 | $ 5,102 |
Interest Expense | 1,378 | 1,613 | 2,806 | 3,221 |
| | | | | |
Net Interest Income | 1,339 | 879 | 2,594 | 1,881 |
Provision for Loan Losses | 19 | 56 | 33 | 56 |
Net Interest Income after Provision for Loan Losses | 1,320 | 823 | 2,561 | 1,825 |
| | | | | |
Noninterest Expense | 1,120 | 1,126 | 2,263 | 2,255 |
Net Income (Loss) Before Non-Interest Income and Income Taxes | 200 | (303) | 298 | (430) |
| | | | | |
Noninterest Income | (117) | 281 | (96) | 874 |
Income Before Tax Expense | 83 | (22) | 202 | 444 |
| | | | | |
Income Tax Expense | (11) | (28) | (3) | 63 |
Net Income | $ 94 | $ 6 | $ 205 | $ 381 |
Net Income Per Common Share | $ 0.08 | $ 0.01 | $ 0.18 | $ 0.31 |
| | | | | |
Selected Operating Data | | | | |
Weighted Average Shares Outstanding | 1,156,784 | 1,187,429 | 1,158,428 | 1,242,659 |
Return on Average Assets1 | 0.17% | 0.01% | 0.19% | 0.36% |
Non Interest Expense/Average Assets1 | 2.07% | 2.09% | 2.09% | 2.12% |
Net Interest Margin | 2.55% | 1.70% | 2.47% | 1.84% |
1 Annualized | | | | |
