[LOGO]
GFSB
BANCORP, INC
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
- --------------------- --------------------------------
August 13, 2003 Jerry R. Spurlin, Chief Financial Officer
(505) 726-6500
GFSB BANCORP, INC. ANNOUNCES EARNINGS
Gallup, New Mexico - GFSB Bancorp, Inc. (NASDAQ SmallCap: GUPB) parent holding
company of Gallup Federal Savings Bank, Gallup, New Mexico, today announced
earnings for year ended June 30, 2003 of $1,690,000 compared to $1,611,000 for
the year ended June 30, 2002, a $79,000 or 4.9% increase.
The increase in earnings is primarily the result of an increase in net interest
earnings of $552,000, a $233,000 increase in non-interest income and a $156,000
decrease in the provision for income taxes partially offset by a $232,000
increase in the provision for loan losses and a $630,000 increase in
non-interest expense.
Total non-interest income increased by $233,000 or 59.7% from $390,000 for the
year ended June 30, 2002 to $623,000 for the year ended June 30, 2003. This
increase was primarily due to an increase in service charge income of $139,000,
an increase in net gains from sales of loans of $96,000, and an increase in
miscellaneous income of $8,000 partially offset by a $10,000 decrease in net
gains from sales of available-for-sale securities. The increase in service
charge income is primarily due to increased insufficient funds fees collected on
NOW and checking accounts. The increase in miscellaneous income is primarily due
to a $5,000 gain on the sale of other real estate owned.
Total non-interest expense increased $630,000 or 16.8% from $3,740,000 for the
year ended June 30, 2002 to $4,370,000 for the year ended June 30, 2003. The
increase in non-interest expense was primarily attributable to increases in
compensation and benefits, occupancy costs, advertising, stationery, printing
and office supplies, professional fees, data processing, insurance and other
operating expenses, offset by a decrease in stock services. A substantial
portion of the increase in non-interest expense is directly related to costs
associated with operating the Bank's new branch in Farmington, New Mexico.
At June 30, 2003, the Company's capital to asset ratio was 7.7%, with assets and
stockholders' equity of $230 million and $17.7 million, respectively.
This release may contain forward-looking statements. We caution that such
statements may be subject to a number of uncertainties and actual results could
differ materially and, therefore, readers should not place undue reliance on any
forward-looking statements. The Company does not undertake, and specifically
disclaims, any obligation to publicly release the results of any revisions that
may be made to any forward-looking statements to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date of such
statements.
- --------------------------------------------------------------------------------
P.O. BOX 820 - 221 WEST AZTEC - GALLUP, NM 87301
GFSB BANCORP, INC.
Selected Financial Information (Unaudited)
(dollars in thousands, except per share data)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
At Period End
---------------------
06/30/03 06/30/02
---------------------
Cash and investments 37,208 31,030
Mortgage-backed securities 38,517 27,290
FHLB stock 4,333 4,219
Loans receivable, net 146,396 143,681
Premises and equipment 2,314 2,511
Prepaid and other assets 1,187 1,347
------- -------
TOTAL ASSETS 229,955 210,078
======= =======
Deposits 129,759 110,349
Advances from FHLB 76,642 76,386
Other secured borrowings 3,658 3,933
Repurchase agreements 585 1,235
Accrued expenses and other liabilities 1,567 1,792
Stockholders' equity 17,744 16,383
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 229,955 210,078
======= =======
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Three Months Ended Fiscal Year Ended
--------------------------------------
06/30/03 06/30/02 06/30/03 06/30/02
--------------------------------------
Interest earnings 3,318 3,296 12,743 13,504
Interest expense 1,520 1,644 6,162 7,475
--------------------------------------
NET INTEREST EARNINGS 1,798 1,652 6,581 6,029
Provision for loan losses 237 100 452 220
--------------------------------------
NET INTEREST EARNINGS AFTER
PROVISION FOR LOAN LOSSES 1,561 1,552 6,129 5,809
Non-interest income 160 108 623 390
Non-interest expense 1,186 1,130 4,370 3,740
--------------------------------------
EARNINGS BEFORE INCOME TAXES 535 530 2,382 2,459
Provision for income taxes 62 216 692 848
NET EARNINGS 473 314 1,690 1,611
Weighted average number of 1,118 1,110 1,115 1,105
shares outstanding- basic
Earnings per common share-basic 0.42 0.28 1.52 1.46
Weighted average number of 1,166 1,153 1,160 1,144
shares outstanding- diluted
Earnings per common share-diluted 0.41 0.27 1.46 1.41