GFSB
BANCORP, INC.
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FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
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February 13, 2004 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 December 31, 2003, of $500,000 and for the six
months ended December 31, 2003, of $827,000. Earnings for the same periods a
year earlier were $426,000 and $937,000.
The Company attributes the $110,000 decrease in earnings for the six months
ended December 31, 2003 from the six months ended December 31, 2002 primarily to
a $47,000 decrease in net interest earnings, a $55,000 increase in the provision
for loan losses, and a $241,000 increase in non-interest expense, partially
offset by a $171,000 increase in non-interest earnings and a $62,000 decrease in
income tax expense. The decrease in net interest earnings is primarily due to
the recent leveling of interest rates which has put pressure on the Company's
net interest margin and reduced refinancing activity. The Company attributes the
increase in provisions and non-interest expense to bank growth and growth in the
loan portfolio in particular.
Total non-interest income increased by $171,000 or 62.2% to $446,000 for the six
months ended December 31, 2003 from $275,000 for the six months ended December
31, 2002. This increase was primarily due to an increase in service charge
income of $157,000 and an increase in miscellaneous income of $42,000, partially
offset by a decrease of $26,000 in net gains from sales of loans.
Total non-interest expense increased $241,000 or 11.7% to $2,306,000 for the six
months ended December 31, 2003 from $2,065,000 for the six months ended December
31, 2002. The increase in non-interest expense was primarily attributable to
increases in compensation and benefits, data processing, professional fees,
advertising, postage, stock services and other operating expenses.
At December 31, 2003, the Company's capital to asset ratio was 7.6%, with assets
and stockholders' equity of $239.5 million and $18.2 million, respectively.
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P.O. BOX 820 O 221 WEST AZTEC O 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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12/31/03 12/31/02 06/30/03
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Cash and investments 41,151 30,036 37,208
Mortgage-backed securities 32,460 30,602 38,517
FHLB stock 4,377 4,280 4,333
Loans receivable, net 157,745 145,389 146,396
Premises and equipment 2,623 2,416 2,314
Prepaid and other assets 1,165 1,431 1,187
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TOTAL ASSETS 239,521 214,154 229,955
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Deposits 139,702 111,651 129,759
Advances from FHLB 72,399 79,253 76,642
Other secured borrowings 6,555 2,930 3,658
Repurchase Agreements 930 1,130 585
Accrued expenses and other liabilities 1,765 1,954 1,567
Stockholders' equity 18,170 17,236 17,744
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 239,521 214,154 229,955
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CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Three Months Ended Six Months Ended
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12/31/03 12/31/02 12/31/03 12/31/02
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Interest earnings 3,087 3,157 6,094 6,404
Interest expense 1,418 1,539 2,877 3,140
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NET INTEREST EARNINGS 1,669 1,618 3,217 3,264
Provision for loan losses 70 50 130 75
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NET INTEREST EARNINGS AFTER
PROVISION FOR LOAN LOSSES 1,599 1,568 3,087 3,189
Non-interest income 249 147 446 275
Non-interest expense 1,189 1,069 2,306 2,065
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EARNINGS BEFORE INCOME TAXES 659 646 1,227 1,399
Provision for income taxes 159 220 400 462
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NET EARNINGS 500 426 827 937
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Weighted average number of
shares outstanding- basic 1,125 1,116 1,123 1,114
Earnings per common share-basic 0.44 0.38 0.74 0.84
Weighted average number of
shares outstanding- diluted 1,180 1,162 1,178 1,160
Earnings per common share-diluted 0.42 0.37 0.70 0.81