Exhibit 99.1
FOR IMMEDIATE RELEASE
_____________________
July 25, 2007
GS Financial Corp. Announces Second Quarter Results
METAIRIE, La. - GS Financial Corp., (NASDAQ: GSLA), the holding
company of Guaranty Savings Bank (www.guarantysb.com), announced
quarterly earnings of $293,000 for the quarter ended June 30,
2007, up $50,000, or 20.6% from the same period in 2006.
Earnings per share for the second quarter of 2007 were $.24, up
from $.20 for the second quarter of 2006. The increase in
earnings for the quarter ended June 30, 2007 was primarily due to
a reversal of provision for loan losses of $300,000, or $198,000
net of income taxes during the quarter.
"We continue to make progress in executing our strategic
objectives" noted President Stephen E. Wessel. "Our residential
and commercial loan demand continues to be robust. Recovery from
the devastation of Hurricane Katrina is continuing to progress in
some parts of our metropolitan area. In the first six (6) months
of 2007 we have invested additional resources in new employees
for mortgage origination and in commercial banking. We have
purchased a new branch site to expand our presence to the west
bank of Jefferson Parish. Our renovation and reconstruction of
our flooded mid-city branch is nearly complete. We have also
built a secondary marketing capability which will generate long-
term revenue, and have introduced new products in mortgage
banking, credit cards and remote deposit. We have successfully
grown some of our targeted products such as demand deposit
accounts, money market accounts and home equity lending along
with more commercial owner-occupied building loans. These are
significant steps in implementing the long-term strategic plan
adopted by the Board of Directors that have increased our
expenses during the six months but which we expect will enhance
our profitability through the conversion of Guaranty Savings Bank
from a traditional thrift to a community bank business model."
For the first six months of 2007, net income totaled $389,000,
down 25.0% from $519,000 over the same time period in 2006.
Earnings per share over the first half of 2007 were $.32, down
25.6% from $.43 in the first half of 2006.
Net interest income, excluding loan loss reserves, for the
quarter ended June 30, 2007 was $1.4 million, down 14.0% from
$1.6 million in the second quarter of 2006, and up $21,000, or
1.5% from the first quarter of 2007. The second quarter 2007 net
interest margin was 3.50%, down 30 basis points from 3.80% for
the second quarter of 2006, and up 2 basis points from 3.48% in
the first quarter of 2007.
Net interest income for the first half of 2007 was $2.8 million,
down 12.5% from $3.2 million in the first six months of 2006.
This decline was primarily the result of increases in deposit
costs only partially being offset by improved product mixes on
both the asset and liability side of the balance sheet. The net
interest margin for the first half of 2007 was 3.49%, down 16
basis points from 3.65% for the same time period in 2006.
Additional financial highlights include the following:
* Total assets at June 30, 2007 were $169.9 million, up
approximately 0.9% from December 31, 2006.
* Total loans at June 30, 2007 were $108.9 million, up
approximately 11.4% from December 31, 2006.
* Deposits at June 30, 2007 were $125.2 million, up
approximately 2.4% from December 31, 2006.
* Outstanding advances from the Federal Home Loan Bank at June
30, 2007 were $16.8 million, down approximately 1.3% from
December 31, 2006.
* Stockholders' equity at June 30, 2007 was $27.0 million,
down $177,000 from December 31, 2006. Stockholders' equity as a
percentage of total assets at June 30, 2007 was 15.88%, down from
16.13% at December 31, 2006.
* Non-interest expense for the second quarter of 2007 totaled
$1.3 million, up approximately 10.7% from a year earlier. Non-
interest expense for the first half of 2007 totaled $2.6 million,
up approximately 11.7% from the first six months of 2006.
* Non-performing assets were $502,000 at June 30, 2007,
compared to $179,000 at December 31, 2006. The ratio of non-
performing assets to total assets at June 30, 2007 was 0.30%
compared to 0.11% at December 31, 2006.
* The ratio of total loans to deposits at June 30, 2007 was
86.98%, compared to 79.60% at December 31, 2006.
FORWARD-LOOKING INFORMATION
Statements contained in this news release which are not
historical facts may be forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are subject to risks and
uncertainties which could cause actual results to differ
materially from those currently anticipated due to a number of
factors. Factors which could result in material variations
include, but are not limited to, changes in interest rates which
could affect net interest margins and net interest income,
competitive factors which could affect net interest income and
noninterest income, changes in demand for loans, deposits and
other financial services in the Company's market area; changes in
asset quality, general economic conditions as well as other
factors discussed in documents filed by the Company with the
Securities and Exchange Commission from time to time. In addition
to risks and uncertainties described by the Company in prior
filings with the SEC, other risks and uncertainties potentially
impacting the Company are those related to the Company in its
primary market area impacted by Hurricane Katrina, including the
continuing effect of the storm and its aftermath on the Company's
operating expenses and on the Company's borrowers and other
customers. The Company undertakes no obligation to update these
forward-looking statements to reflect events or circumstances
that occur after the date on which such statements were made.
GS Financial Corp.
Condensed Consolidated Statements of Financial Condition
_________________________________________________________________________________________
June 30, 2007 December 31, 2006
($ in thousands) (Unaudited) (Audited)
_________________________________________________________________________________________
ASSETS
Cash and Cash Equivalents
Cash & Amounts Due from Depository Institutions $ 1,702 $ 1,893
Interest-Bearing Deposits in Other Banks 2,107 6,544
Federal Funds Sold 360 2,680
Securities Available-for-Sale, at Fair Value 50,852 55,090
Loans, Net 105,466 93,987
Accrued Interest Receivable 1,883 2,004
Premises & Equipment, Net 4,263 3,578
Stock in Federal Home Loan Bank, at Cost 1,009 982
Real Estate Held-for-Investment, Net 457 464
Other Assets 1,825 1,158
________________________________________________________________________________________
Total Assets $ 169,924 $ 168,380
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LIABILITIES
Deposits
Interest-Bearing Deposits $ 120,597 $ 119,364
Noninterest-Bearing Deposits 4,597 3,390
________________________________________________________________________________________
Total Deposits 125,194 122,754
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FHLB Advances 16,817 17,042
Other Liabilities 927 1,420
________________________________________________________________________________________
Total Liabilities 142,938 141,216
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STOCKHOLDERS' EQUITY
Common Stock - $.01 Par Value 34 $ 34
Additional Paid-in Capital 34,701 34,701
Unearned RRP Trust Stock (523) (523)
Treasury Stock (32,493) (32,493)
Retained Earnings 25,902 25,764
Accumulated Other Comprehensive Loss (635) (319)
________________________________________________________________________________________
Total Stockholders' Equity 26,986 27,164
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Total Liabilities & Stockholders' Equity $ 169,924 $ 168,380
Selected Asset Quality Data
Total Non Performing Assets $ 502 $ 179
Non Performing Assets to Total Assets 0.30% 0.11%
GS Financial Corp.
Condensed Consolidated Statements of Income
(Unaudited)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
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($ in thousands, except per share data) 2007 2006 2007 2006
____________________________________________________________________________________________________________________
Interest and Dividend Income $ 2,733 $ 2,782 $ 5,387 $ 5,494
Interest Expense 1,342 1,170 2,627 2,344
____________________________________________________________________________________________________________________
Net Interest Income 1,391 1,612 2,760 3,150
Provision (Reversal) for Loan Losses (300) - (300) -
____________________________________________________________________________________________________________________
Net Interest Income after Provision (Reversal)
for Loan Losses 1,691 1,612 3,060 3,150
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Non-Interest Expense 1,314 1,187 2,590 2,319
____________________________________________________________________________________________________________________
Net Income Before Non-Interest Income and
Income Taxes 377 425 470 831
====================================================================================================================
Non-interest Income (Loss) 43 (53) 72 (45)
____________________________________________________________________________________________________________________
Income Before Tax Expense 420 372 542 786
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Income Tax Expense 127 129 153 267
____________________________________________________________________________________________________________________
Net Income $ 293 243 $ 389 519
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Earnings Per Share - Basic $ 0.24 0.20 $ 0.32 0.43
====================================================================================================================
Earnings Per Share - Diluted $ 0.24 0.20 $ 0.32 0.43
====================================================================================================================
Selected Operating Data
Weighted Average Shares Outstanding 1,234,453 1,214,190 1,234,453 1,215,707
Return on Average Assets(1) 0.70% 0.56% 0.47% 0.59%
Non-Interest Expense/Average Assets(1) 3.13% 2.72% 3.12% 2.65%
Net Interest Margin(1) 3.50% 3.80% 3.49% 3.65%
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(1) Annualized
Contact: Andy Bower, Chief Financial Officer, (504) 883-5535