Exhibit 99.1
(GS Financial Corp Letterhead)
FOR IMMEDIATE RELEASE
July 20, 2005
GS Financial Corp. Announces Second Quarter Results
(NASDAQ: GSLA)
METAIRIE, La. – GS Financial Corp, the holding company of Guaranty Savings and Homestead Association (www.gsha.com), announced quarterly earnings of $271,000 for the quarter ended June 30, 2005, up 188% from $94,000 over the same period in 2004. Earnings per share for the second quarter of 2005 were $.23, up 188% from $.08 for the second quarter of 2004.
For the first six months of 2005, net income totaled $172,000, down 16% from $205,000 over the same time period in 2004. Earnings per share over the first half of 2005 were $.14, down 22% from $.18 in the first half of 2004. First half results include the one-time recognition of costs associated with the retirement of the Company’s former President and Chief Executive Officer. These costs totaled $428,000, or $.36 per share ($282,000, or $.24 per share, after related tax benefits). Excluding the impact of this one-time charge, net earnings from operations for the six months ended June 30, 2005 were $454,000, or $.38 per share.
Net interest income for the quarter ended June 30, 2005 was $1.4 million, up 7% from $1.3 million in the second quarter of 2004, and down 1% from 1.4 million in the first quarter of 2005. The second quarter 2005 net interest margin was 3.09%, up 54 basis points from 2.55% for the second quarter of 2004, and up 6 basis points from 3.03% in the first quarter of 2005.
Net interest income for the first half of 2005 was $2.9 million, up 11% from $2.6 million in the first six months of 2004. The net interest margin for the first half of 2005 was 3.06%, up 59 basis points from 2.47% for the same time period in 2004.
Additional financial highlights include the following:
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Total assets at June 30, 2005 were $189.4 million, down approximately 5% from December 31, 2004.
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Loans at June 30, 2005 were $87.9 million, down approximately 5% from December 31, 2004.
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Deposits at June 30, 2005 were $123.9 million, down approximately 5% from December 31, 2004.
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Outstanding advances from the Federal Home Loan Bank at June 30, 2005 were $35.8 million, down approximately 10% from December 31, 2004.
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Stockholders’ equity at June 30, 2005 was $28.8 million, down less than 1% from December 31, 2004. Stockholders’ equity as a percentage of total assets at June 30, 2005 was 15.22%, up from 14.47% at December 31, 2004.
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Non-interest expense for the second quarter of 2005 totaled $1.1 million, down approximately 4% from a year earlier. Non-interest expense for the first half of 2005 totaled $2.6 million, up approximately 14% from the first six months of 2004. Included in the first half of 2005 are the previously mentioned expenses associated with the retirement of the Company’s former President and Chief Executive Officer. Excluding the impact of this one-time charge, non-interest expenses for the first half would have been $2.2 million, down approximately 5% from the previous year.
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Non-performing assets were $718,000 at June 30, 2005, compared to $894,000 at December 31, 2004. The ratio of non-performing assets to total assets at June 30, 2005 was .38% compared to .45% at December 31, 2004.
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Reserve coverage of non-performing assets at June 30, 2004 was 128% compared to 103% at December 31, 2004. Reserve coverage of total loans was 1.04% at June 30, 2005 compared to .99% at December 31, 2004.
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The ratio of loans to deposits at June 30, 2005 was 70.97%, compared to 70.5% at December 31, 2004.
GS Financial Corp. |
Condensed Consolidated Statements of Financial Condition |
| | |
($ in thousands) | 6/30/2005 (Unaudited) | 12/31/2004 (Audited) |
ASSETS | | |
| | | |
Cash & Amounts Due from Depository Institutions | $ 2,162 | $ 1,613 |
Interest-Bearing Deposits from Other Banks | 5,244 | 3,761 |
Federal Funds Sold | 2,930 | 1,650 |
| | | |
Securities Available-for-Sale, at Fair Value | 84,406 | 94,557 |
Loans, Net | 87,903 | 92,158 |
Accrued Interest Receivable | 753 | 596 |
Premises & Equipment, Net | 2,543 | 2,508 |
Stock in Federal Home Loan Bank, at Cost | 2,484 | 2,445 |
Foreclosed Assets | 159 | - |
Real Estate Held-for-Investment, Net | 485 | 493 |
Other Assets | 334 | 285 |
Total Assets | $ 189,403 | $ 200,066 |
| | | |
LIABILITIES | | |
Deposits | | |
Interest-Bearing Deposits | $ 122,772 | $ 129,758 |
Noninterest-Bearing Deposits | 1,088 | 965 |
Total Deposits | 123,860 | 130,723 |
FHLB Advances | 35,817 | 39,689 |
Other Liabilities | 901 | 710 |
Total Liabilities | 160,578 | 171,122 |
| | | |
STOCKHOLDERS' EQUITY | | |
Preferred Stock - $.01 Par Value | $ - | $ - |
Common Stock - $.01 Par Value | 34 | 34 |
Additional Paid-in Capital | 34,538 | 34,425 |
Unearned ESOP Stock | (380) | (521) |
Unearned RRP Trust Stock | (861) | (865) |
Treasury Stock | (32,193) | (32,119) |
Retained Earnings | 28,216 | 28,286 |
Accumulated Other Comprehensive Loss | (529) | (296) |
Total Stockholders' Equity | 28,825 | 28,944 |
Total Liabilities & Stockholders' Equity | $ 189,403 | $ 200,066 |
| | |
| | | |
Selected Asset Quality Data | | |
Total Non Performing Assets | $ 718 | $ 894 |
Non Performing Assets to Total Assets | 0.38% | 0.45% |
Allowance for Loan Losses to Non Performing Assets | 128.13% | 102.90% |
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) | 2005 | 2004 | 2005 | 2004 |
Interest and Dividend Income | $ 2,647 | $ 2,717 | $ 5,310 | $ 5,400 |
Interest Expense | 1,220 | 1,378 | 2,443 | 2,806 |
| | | | | |
Net Interest Income | 1,427 | 1,339 | 2,867 | 2,594 |
Provision for Loan Losses | - | 19 | - | 33 |
Net Interest Income after Provision for Loan Losses | 1,427 | 1,320 | 2,867 | 2,561 |
| | | | | |
Non-interest Expense | 1,071 | 1,120 | 2,588 | 2,263 |
Net Income Before Non-Interest Income and Income Taxes | 356 | 200 | 279 | 298 |
| | | | | |
Non-interest Income | 24 | (117) | 32 | (96) |
Income Before Tax Expense | 380 | 83 | 311 | 202 |
| | | | | |
Income Tax Expense | 109 | (11) | 139 | (3) |
Net Income | $ 271 | $ 94 | $ 172 | $ 205 |
Earnings Per Share - Basic | $ 0.23 | $ 0.08 | $ 0.14 | $ 0.18 |
Earnings Per Share -Diluted | $ 0.23 | $ 0.08 | $ 0.14 | $ 0.17 |
| | | | | |
Selected Operating Data | | | | |
Weighted Average Shares Outstanding | 1,181,065 | 1,156,784 | 1,181,834 | 1,158,428 |
Return on Average Assets1 | 0.57% | 0.17% | 0.18% | 0.19% |
Non-Interest Expense/Average Assets1 | 2.26% | 2.07% | 2.69% | 2.09% |
Net Interest Margin1 | 3.09% | 2.55% | 3.06% | 2.47% |
1 Annualized | | | | |
