[Logo] GALLUP
FEDERAL
SAVINGS BANK
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FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
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February 11, 2005 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, 2004, of $327,000 ($0.27 per diluted
share) and for the six months ended December 31, 2004, of $801,000 ($0.67 per
diluted share). Earnings for the same periods a year earlier were $500,000 and
$827,000.
The $26,000 decrease in earnings for the six months ended December 31, 2004 was
primarily the result of a $332,000 increase in non-interest expense and a
$141,000 increase in income tax expense, partially offset by an increase of
$312,000 in net interest earnings, a $64,000 increase in non-interest earnings,
and a $70,000 decrease in provision for loan losses. The decrease in provision
for loan losses for the current six-month period is primarily due to improvement
in loan quality and the fact that the Company's loan portfolio decreased during
the period.
The increase in net interest earnings was primarily due to a $460,000 decrease
in total interest expense partially offset by a $148,000 decrease in total
interest earnings. The increase in non-interest expense is primarily
attributable to significant increases in legal and professional services fees
associated with the Agreement and Plan of Merger between the Company and First
Federal Banc of the Southwest, Inc. announced on August 25, 2004.
The $64,000 increase in non-interest earnings for the six-month period was
primarily due to an increase in service charge income of $87,000 and a $5,000
increase in income from real estate operations coupled with a decrease of
$29,000 in miscellaneous income. The decrease in miscellaneous income is
primarily attributed to gains on the sale of other real estate owned in the
year-ago period.
At December 31, 2004, the Company's capital to asset ratio was 8.8%, with assets
and stockholders' equity of $217.3 million and $19.1 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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221 West Aztec o Gallup, N.M. 87301 o PHONE (505) 726-6800 o FAX (505) 722-9205
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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12/31/04 12/31/03 06/30/04
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Cash and investments 34,940 41,151 39,625
Mortgage-backed securities 26,454 32,460 30,680
FHLB stock 3,626 4,377 4,409
Loans receivable, net 148,420 157,745 152,842
Premises and equipment 2,411 2,623 2,514
Prepaid and other assets 1,406 1,165 2,017
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TOTAL ASSETS 217,257 239,521 232,087
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Deposits 131,589 139,702 133,860
Advances from FHLB 60,468 72,399 73,652
Other secured borrowings 4,809 7,485 5,109
Accrued expenses and other liabilities 1,275 1,765 1,334
Stockholders' equity 19,116 18,170 18,132
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 217,257 239,521 232,087
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CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Three Months Ended Six Months Ended
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12/31/04 12/31/03 12/31/04 12/31/03
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Interest earnings 2,969 3,087 5,945 6,094
Interest expense 1,191 1,418 2,417 2,877
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NET INTEREST EARNINGS 1,778 1,669 3,528 3,217
Provision for loan losses 60 70 60 130
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NET INTEREST EARNINGS AFTER
PROVISION FOR LOAN LOSSES 1,718 1,599 3,468 3,087
Non-interest income 256 249 511 446
Non-interest expense 1,344 1,189 2,638 2,306
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EARNINGS BEFORE INCOME TAXES 630 659 1,341 1,227
Provision for income taxes 303 159 540 400
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NET EARNINGS 327 500 801 827
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Weighted average number of
shares outstanding- basic 1,138 1,125 1,138 1,123
Earnings per common share-basic 0.29 0.44 0.70 0.74
Weighted average number of
shares outstanding- diluted 1,200 1,180 1,200 1,178
Earnings per common share-diluted 0.27 0.42 0.67 0.70
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