GFSB
BANCORP, INC.
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FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
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November 4, 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 the quarter ended September 30, 2003, of $327,000 compared to
$512,000 for the quarter ended September 30, 2002, a $185,000 decrease.
The decrease in earnings is primarily attributable to a $35,000 increase in the
provision for loan losses, a $121,000 increase in non-interest expense and a
$98,000 decrease in net interest earnings partially offset by a $69,000 increase
in non-interest earnings.
Total non-interest income increased by $69,000 or 53.9% to $197,000 for the
quarter ended September 30, 2003 from $128,000 for the quarter ended September
30, 2002. This increase was primarily due to an increase in service charge
income of $72,000 partially offset by a decrease of $4,000 in net gains from
sales of loans.
Total non-interest expense increased $121,000 or 12.1% to $1,117,000 for the
quarter ended September 30, 2003 from $996,000 for the quarter ended September
30, 2002. The increase in non-interest expense was primarily attributable to
increases in compensation and benefits, data processing, professional fees,
advertising, postage and other operating expenses.
At September 30, 2003, the Company's capital to asset ratio was 7.4%, with
assets and stockholders' equity of $241.7 million and $17.8 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.
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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
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09/30/03 09/30/02 06/30/03
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Cash and investments 42,343 30,025 37,208
Mortgage-backed securities 33,823 28,091 38,517
FHLB stock 4,355 4,250 4,333
Loans receivable, net 157,456 143,742 146,396
Premises and equipment 2,420 2,457 2,314
Prepaid and other assets 1,345 1,354 1,187
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TOTAL ASSETS 241,742 209,919 229,955
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Deposits 137,116 114,054 129,759
Advances from FHLB 77,973 71,713 76,642
Other secured borrowings 6,096 3,438 3,658
Repurchase agreements 811 1,610 585
Accrued expenses and other liabilities 1,929 2,255 1,567
Stockholders' equity 17,817 16,849 17,744
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 241,742 209,919 229,955
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CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Three Months Ended
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09/30/03 09/30/02
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Interest earnings 3,007 3,247
Interest expense 1,459 1,601
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NET INTEREST EARNINGS 1,548 1,646
Provision for loan losses 60 25
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NET INTEREST EARNINGS AFTER
PROVISION FOR LOAN LOSSES 1,488 1,621
Non-interest income 197 128
Non-interest expense 1,117 996
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EARNINGS BEFORE INCOME TAXES 568 753
Provision for income taxes 241 241
NET EARNINGS 327 512
Weighted average number of 1,122 1,112
shares outstanding- basic
Earnings per common share-basic 0.29 0.46
Weighted average number of 1,170 1,156
shares outstanding- diluted
Earnings per common share-diluted 0.28 0.44