FOR IMMEDIATE RELEASE
January 21, 2005
Contact: Ralph Weber, President
Phone: (504) 457-6220
GS Financial Corp. Announces Fourth Quarter Earnings
(NASDAQ: GSLA)
Metairie, Louisiana – Ralph Weber, President of GS Financial Corp. (the “Company”), the holding company for Guaranty Savings and Homestead Association (the “Association”), announced losses for the quarter ended December 31, 2004 of $246,000, or $.21 per share, compared to earnings of $160,000, or $.14 per share, for the quarter ended December 31, 2003. Earnings for the year ended December 31, 2004 were $199,000, or $.17 per share, compared to $691,000, or $.58 per share, for the year ended December 31, 2003.
Earnings for the fourth quarter of 2004 were adversely affected by a $497,000 write-down of the Association’s investment in FHLMC preferred stock due to losses which was determined to be “other than temporary” as defined by current accounting guidance. Management felt that this action was necessary after reviewing data and analysis from several sources concerning the current financial position of FHLMC and the future prospects of recovery of at least some portion of the Association’s losses.
In addition, the Association took a $310,000 charge to fourth quarter earnings in the form of an increase to its allowance for loan losses. This action was taken as part of the Association’s regular evaluation of the loan portfolio.
Net interest income for the quarter ended December 31, 2004 was $1.5 million compared to $1.1 million for the same period in 2003 and $5.6 million for the year ended December 31, 2004 compared to $3.8 million for the previous year. The Company’s net interest margin increased to 3.06% for the fourth quarter of 2004 from 2.11% for the year earlier quarter and 2.76% for the year ended December 31, 2004 compared to 1.84% in 2003.
Total assets of the Company at December 31, 2004 amounted to $200.1 million compared to $214.7 million at December 31, 2003. The reduction in assets is in part due to the utilization of cash to make scheduled principal reductions on FHLB advances, the principal repayment of mortgage backed securities, the sale of other investments and decreases in the market value of the Company’s investments.
There was significant growth in the Company’s loan portfolio during 2004. Net loans at December 31, 2004 were $92.2 million compared to $77.4 million at December 31, 2003. With the reduction of interest rates in the second quarter of 2004, the outstanding balance in customer deposit accounts began to decline, as anticipated, & continued through year-end.
GS Financial Corp. |
Condensed Consolidated Statements of Financial Condition |
(Unaudited) |
| | |
($ in thousands) | December 31, 2004 | December 31, 2003 |
ASSETS | | |
Cash & Due from Banks | $ 1,613 | $ 1,899 |
Interest Bearing Deposits | 3,761 | 4,507 |
Federal Funds Sold | 1,650 | 4,965 |
Securities Available-for-Sale, at Fair Value | 94,557 | 119,271 |
Loans, Net | 92,158 | 77,367 |
Accrued Interest Receivable | 596 | 547 |
Premises & Equipment, Net | 2,508 | 2,591 |
Stock in Federal Home Loan Bank, at Cost | 2,445 | 2,726 |
Foreclosed Assets | - | 52 |
Real Estate Held-for-Investment, Net | 493 | 511 |
Other Assets | 285 | 278 |
Total Assets | $ 200,066 | $ 214,714 |
| | | |
LIABILITIES | | |
Interest Bearing Deposits | $ 129,758 | $ 140,953 |
Non-Interest Bearing Deposits | 965 | 1,155 |
FHLB Advances | 39,689 | 42,135 |
Other Liabilities | 710 | 1,163 |
Total Liabilities | 171,122 | 185,406 |
| | | |
STOCKHOLDERS' EQUITY | | |
Common Stock & Additional Paid in Capital | $ 34,459 | $ 34,265 |
Unearned ESOP Stock | (521) | (802) |
Unearned RRP Trust Stock | (865) | (1,059) |
Treasury Stock | (32,119) | (31,804) |
Retained Earnings | 28,286 | 28,553 |
Accumulated Other Comprehensive Income | (296) | 155 |
Total Stockholders' Equity | 28,944 | 29,308 |
Total Liabilities & Stockholders' Equity | $ 200,066 | $ 214,714 |
| | | |
Selected Asset Quality Data | | |
Total Non Performing Assets | $ 894 | $ 981 |
Non Performing Assets to Total Assets | 0.45% | 0.46% |
Allowance for Loan Losses to Non Performing Assets | 102.90% | 61.23% |
GS Financial Corp. |
Condensed Consolidated Statements of Income |
(Unaudited) |
| |
| For the three months ended December 31, | For the year ended December 31, |
($ in thousands, except per share data) | 2004 | 2003 | 2004 | 2003 |
Interest Income | $ 2,796 | $ 2,538 | $ 10,989 | $ 9,993 |
Interest Expense | 1,297 | 1,455 | 5,436 | 6,178 |
| | | | | |
Net Interest Income | 1,499 | 1,083 | 5,553 | 3,815 |
Provision for Loan Losses | 310 | 21 | 343 | 118 |
Net Interest Income after Provision for Loan Losses | 1,189 | 1,062 | 5,210 | 3,697 |
| | | | | |
Noninterest Expense | 1,091 | 985 | 4,483 | 4,419 |
Net Income (Loss) Before Non-Interest Income and Income Taxes | 98 | 77 | 727 | (722) |
| | | | | |
Noninterest Income | (510) | 34 | (691) | 1,476 |
Income Before Tax Expense | (412) | 111 | 36 | 754 |
| | | | | |
Income Tax Expense | (166) | (49) | (163) | 63 |
Net Income | $ (246) | $ 160 | $ 199 | $ 691 |
Net Income Per Common Share | $ (0.21) | $ 0.14 | $ 0.17 | $ 0.58 |
| | | | | |
Selected Operating Data | | | | |
Weighted Average Shares Outstanding | 1,156,537 | 1,139,674 | 1,156,441 | 1,194,296 |
Return on Average Assets1 | -0.48% | 0.30% | 0.09% | 0.32% |
Non Interest Expense/Average Assets1 | 2.14% | 1.82% | 2.12% | 2.06% |
Net Interest Margin | 3.06% | 2.11% | 2.76% | 1.84% |
1 Annualized | | | | |
