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Share Name | Share Symbol | Market | Type |
---|---|---|---|
GS Financial Corp. (MM) | NASDAQ:GSLA | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 20.83 | 0 | 01:00:00 |
GS Financial Corp.
|
2010 Annual Report
|
To our Shareholders: A Message from the President and CEO
|
·
|
Net interest income increased to $9.3 million in 2010 compared to $8.1 million in 2009 and the net interest margin improved 36 basis points to 3.62% in 2010 from 3.26% in the prior year.
|
·
|
Noninterest income increased to $2.0 million in 2010 from $1.3 million in 2009.
|
·
|
The ratio of the allowance for loan losses to total loans improved to 1.91% in 2010 from 1.27% at the end of 2009.
|
Index to Annual Report
|
Business Description
|
4
|
Shareholder Information
|
4
|
Selected Consolidated Financial Data
|
5
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
6
|
Management’s Report on Internal Control Over Financial Reporting
|
27
|
Report of Independent Registered Public Accounting Firm
|
28
|
Consolidated Balance Sheets
|
29
|
Consolidated Statements of Income
|
30
|
Consolidated Statements of Comprehensive Income
|
31
|
Consolidated Statements of Changes in Stockholders’ Equity
|
32
|
Consolidated Statements of Cash Flows
|
33
|
Notes to Consolidated Financial Statements
|
35
|
Board of Directors
|
70
|
Executive Officers Who Are Not Directors
|
70
|
Banking Locations
|
71
|
Business Description
|
Shareholder Information
|
TRANSFER AGENT, REGISTRAR, AND | COMMON STOCK | |
DIVIDEND PAYING AGENT FOR COMMON | GS Financial’s common stock is traded on The NASDAQ Global Market | |
STOCK | under the ticker symbol GSLA. As of March 30, 2011, there were | |
Registered shareholder inquiries related to stock transfers, address | approximately 84 shareholders of record. | |
changes, lost stock certificates, dividend payments or account | ||
consolidations should be directed to: | MARKET PRICES AND DIVIDENDS | |
Set forth below are the high and low sales prices for GS Financial’s common | ||
Registrar and Transfer Company | stock on the NASDAQ Global Market and dividends paid for the periods | |
10 Commerce Drive | presented. | |
Cranford, New Jersey 07016 | ||
(800) 368-5948 | ||
www.rtco.com | Year 2010 Stock Price Dividends | |
Quarter Ended High Low | ||
FORM 10-K AND OTHER FINANCIAL | March 31 $ 14.99 $ 13.00 $ 0.10 | |
INFORMATION | June 30 14.18 10.59 0.10 | |
Shareholders are advised to review financial information and other | September 30 12.25 9.36 0.10 | |
disclosures about GS Financial contained in its Annual Report on | December 31 11.98 8.50 0.10 | |
Form 10-K. The Form 10-K for the year ended December 31, 2010 | Year 2009 Stock Price Dividends | |
and other financial reports filed by GS Financial with the SEC are | Quarter Ended High Low | |
available on the Company’s web site at www.gsfinancialcorp.com | March 31 $ 14.00 $ 10.51 $ 0.10 | |
or may be obtained without charge by calling Lettie Moll, | June 30 17.44 12.50 0.10 | |
Corporate Secretary, or Stephen Theriot, Chief Financial Officer, at | September 30 17.10 13.80 0.10 | |
(504) 457-6220 or by writing to:
|
December 31 16.20 12.90 0.10 | |
GS Financial Corp. |
INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS
|
|
Investor Relations | LaPorte, Sehrt, Romig and Hand | |
3798 Veterans Boulevard | A Professional Accounting Corporation | |
Metairie, Louisiana 70002 | 111 Veterans Boulevard, Suite 600 | |
Metairie, Louisiana 70005 | ||
GS Financial Corp. and Subsidiary |
Selected Consolidated Financial Data
|
($ in thousands, except per share data)
|
2010
|
2009
|
2008
|
2007
|
2006
|
BALANCE SHEET DATA
|
|||||
Total assets
|
$263,811
|
$ 271,604
|
$ 221,870
|
$ 186,487
|
$ 168,380
|
Cash and cash equivalents
|
10,254
|
19,735
|
3,205
|
9,462
|
11,117
|
Loans receivable, net
|
189,229
|
185,500
|
158,523
|
118,477
|
93,987
|
Investment securities
|
48,308
|
50,455
|
47,617
|
47,747
|
55,090
|
Deposit accounts
|
198,756
|
201,493
|
140,115
|
129,510
|
122,754
|
Borrowings
|
35,398
|
40,512
|
52,002
|
26,986
|
17,042
|
Stockholders' equity
|
27,690
|
28,021
|
27,558
|
28,164
|
27,164
|
INCOME STATEMENT DATA
|
|||||
Interest income
|
$ 13,720
|
$ 14,159
|
$ 12,426
|
$ 11,248
|
$ 11,000
|
Interest expense
|
4,459
|
6,084
|
5,751
|
5,547
|
4,904
|
Net interest income
|
9,261
|
8,075
|
6,675
|
5,701
|
6,096
|
Provision (reversal) for loan losses
|
2,800
|
500
|
-
|
(300)
|
(1,981)
|
Noninterest income
|
2,010
|
1,330
|
(994)
|
424
|
51
|
Noninterest expense
|
8,057
|
7,529
|
5,673
|
5,409
|
4,926
|
Net income before taxes
|
414
|
1,376
|
8
|
1,016
|
3,202
|
Net income (loss)
|
407
|
886
|
(6)
|
658
|
2,114
|
KEY RATIOS
|
|||||
Return on average assets
|
0.15%
|
0.34%
|
n/m
|
0.38%
|
1.21%
|
Return on average stockholders' equity
|
1.43%
|
3.13%
|
(0.02)%
|
2.40%
|
8.15%
|
Net interest margin
|
3.62%
|
3.26%
|
3.43%
|
3.44%
|
3.58%
|
Average loans to average deposits
|
94.28%
|
97.37%
|
104.88%
|
88.35%
|
70.74%
|
Interest-earning assets to
|
|||||
Interest-bearing liabilities
|
113.51%
|
113.13%
|
117.05%
|
118.86%
|
117.88%
|
Efficiency ratio
|
71.48%
|
80.06%
|
99.86%
|
88.27%
|
80.14%
|
Noninterest expense to average assets
|
2.97%
|
2.89%
|
2.73%
|
3.12%
|
2.82%
|
Allowance for loan losses to loans
|
1.90%
|
1.27%
|
1.69%
|
2.82%
|
3.82%
|
Stockholders' equity to total assets
|
10.50%
|
10.32%
|
12.42%
|
15.10%
|
16.16%
|
COMMON SHARE DATA
|
|||||
Earnings per share:
|
|||||
Basic
|
$ 0.33
|
$ 0.70
|
n/m
|
$ 0.53
|
$ 1.74
|
Diluted
|
0.33
|
0.70
|
n/m
|
0.52
|
1.73
|
Dividends paid per share
|
0.40
|
0.40
|
0.40
|
0.40
|
0.40
|
Dividend payout ratio
|
123.34%
|
57.56%
|
n/m
|
76.44%
|
22.99%
|
Book value per share
|
$ 22.11
|
$ 22.19
|
$ 21.56
|
$ 21.90
|
$ 22.00
|
Trading data:
|
|||||
High closing price
|
$ 14.99
|
$ 17.44
|
$ 18.94
|
$ 21.49
|
$ 21.76
|
Low closing price
|
8.50
|
10.51
|
10.75
|
17.04
|
14.99
|
End of period closing price
|
8.91
|
14.99
|
12.50
|
18.94
|
19.80
|
Average shares outstanding:
|
|||||
Basic
|
1,252,428
|
1,263,021
|
1,278,292
|
1,243,655
|
1,212,173
|
Diluted
|
1,252,428
|
1,263,021
|
1,278,292
|
1,268,995
|
1,222,949
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
·
|
expectations about the overall economy in the Company’s market area,
|
·
|
expectations about the ability of the Company’s borrowers to make payments on outstanding loans and the sufficiency of the allowance for loan losses,
|
·
|
expectations about the current values of collateral securing the Company’s outstanding loans,
|
·
|
expectations about the movement of interest rates, including actions that may be taken by the Federal Reserve Board in response to changing economic conditions,
|
·
|
reliance on existing or anticipated changes in laws or regulations affecting the activities of the banking industry and other financial service providers, and
|
·
|
expectations regarding the nature and level of competition, changes in customer behavior and preferences, and the Company’s ability to execute its plans to respond effectively.
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 1. COMPOSITION OF LOAN PORTFOLIO
|
|||||
At December 31, | |||||
($ in thousands)
|
2010
|
2009
|
2008
|
2007
|
2006
|
Real estate loans - residential
|
$ 80,353
|
$ 78,160
|
$ 69,405
|
$ 59,530
|
$ 47,654
|
Real estate loans - commercial and other
|
76,768
|
69,658
|
67,616
|
45,757
|
36,896
|
Real estate loans - construction
|
12,130
|
19,728
|
10,542
|
9,074
|
9,089
|
Home equity line of credit
|
13,945
|
12,760
|
6,873
|
2,951
|
956
|
Commercial loans
|
7,523
|
5,422
|
4,807
|
3,625
|
2,445
|
Consumer loans
|
1,729
|
1,728
|
1,713
|
913
|
677
|
Total loans at year-end
|
$ 192,448
|
$ 187,456
|
$ 160,956
|
$ 121,850
|
$ 97,717
|
Allowance for loan losses
|
(3,671)
|
(2,380)
|
(2,719)
|
(3,432)
|
(3,732)
|
Deferred loan origination costs
|
452
|
424
|
286
|
59
|
2
|
Net loans at year end
|
189,229
|
185,500
|
158,523
|
118,477
|
93,987
|
Average total loans during year
|
$ 190,536
|
$ 178,780
|
$ 141,892
|
$ 107,785
|
$ 87,360
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 2. LOAN ORIGINATIONS BY TYPE
|
||
Year Ended December 31,
|
||
($ in thousands)
|
2010
|
2009
|
Real estate loans - residential
|
$ 42,510
|
$ 74,724
|
Real estate loans - commercial and other
|
15,553
|
20,229
|
Real estate loans - construction
|
14,192
|
16,633
|
Home equity lines of credit
|
2,638
|
7,807
|
Commercial loans
|
4,516
|
2,106
|
Consumer loans
|
1,460
|
1,461
|
Total originations
|
80,869
|
122,960
|
Loan principal repayments
|
(46,207)
|
(39,893)
|
Loans sold
|
(29,670)
|
(56,567)
|
Net portfolio activity
|
$ 4,992
|
$ 26,500
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 3. LOAN MATURITIES BY TYPE
|
||||
At December 31, 2010, Loans Maturing In
|
||||
($ in thousands)
|
One year or
less
|
One through
five years
|
More than
five years
|
Total
|
Real estate loans – residential
|
$ 2,794
|
$ 24,505
|
$ 53,054
|
$ 80,353
|
Real estate loans – commercial and other
|
12,108
|
39,889
|
24,771
|
76,768
|
Real estate loans – construction
|
12,130
|
-
|
-
|
12,130
|
Home equity line of credit
|
409
|
2,279
|
11,257
|
13,945
|
Commercial loans
|
2,605
|
4,797
|
121
|
7,523
|
Consumer loans
|
1,047
|
447
|
235
|
1,729
|
Total
|
$ 31,093
|
$ 71,917
|
$ 89,438
|
$ 192,448
|
Percentage
|
16.2%
|
37.4%
|
46.4%
|
100.0%
|
TABLE 4. LOAN INTEREST RATES BY TYPE
|
|||
At December 31, 2010, Loans Due After December 31, 2011
|
|||
($ in thousands)
|
Variable rate
|
Fixed rate
|
Total
|
Real estate loans – residential
|
$ 8,720
|
$ 68,839
|
$ 77,559
|
Real estate loans – commercial and other
|
987
|
63,673
|
64,660
|
Home equity line of credit
|
13,536
|
-
|
13,536
|
Commercial loans
|
258
|
4,660
|
4,918
|
Consumer loans
|
333
|
349
|
682
|
Total
|
$ 23,834
|
$ 137,521
|
$ 161,355
|
Percentage
|
14.8%
|
85.2%
|
100.0%
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 5. SUMMARY OF ACTIVITY IN THE ALLOWANCE FOR LOSSES
|
|||||
Year Ended December 31,
|
|||||
($ in thousands)
|
2010
|
2009
|
2008
|
2007
|
2006
|
Balance at the beginning of year
|
$ 2,380
|
$ 2,719
|
$ 3,432
|
$ 3,732
|
$ 5,713
|
Provision (reversal) for loan losses charged to operations
|
2,800
|
500
|
-
|
(300)
|
(1,981)
|
Charge-offs:
|
|||||
Real estate loans - residential
|
(241)
|
(817)
|
(293)
|
-
|
-
|
Real estate loans - commercial and other
|
(1,067)
|
(24)
|
(420)
|
-
|
-
|
Real estate loans - construction
|
-
|
-
|
-
|
-
|
-
|
Home equity lines of credit
|
(210)
|
-
|
-
|
-
|
-
|
Commerical loans
|
(58)
|
-
|
-
|
-
|
-
|
Consumer loans
|
(39)
|
(13)
|
-
|
-
|
-
|
Total charge-offs
|
(1,615)
|
(854)
|
(713)
|
-
|
-
|
Recoveries of loans previously charged-off
|
106
|
15
|
-
|
-
|
-
|
Balance at the end of year
|
$ 3,671
|
$ 2,380
|
$ 2,719
|
$ 3,432
|
$ 3,732
|
Ratios:
|
|||||
Charge-offs to average total loans
|
0.85%
|
0.48%
|
0.50%
|
n/a
|
n/a
|
Provision for loan losses to charge-offs
|
173.37%
|
58.55%
|
n/a
|
n/a
|
n/a
|
Allowance for loan losses to nonperforming loans
|
34.10%
|
57.16%
|
135.21%
|
238.66%
|
2084.92%
|
Allowance for loan losses to loans at end of year
|
1.91%
|
1.27%
|
1.69%
|
2.82%
|
3.82%
|
TABLE 6. ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES
|
||||||||||
At December 31, | ||||||||||
2010
|
2009
|
2008
|
2007
|
2006
|
||||||
($ in thousands)
|
Allowance for Loan Losses
|
% of Loans by Type to Total Loans
|
Allowance for Loan Losses
|
% of Loans by Type to Total Loans
|
Allowance for Loan Losses
|
% of Loans by Type to Total Loans
|
Allowance for Loan Losses
|
% of Loans by Type to Total Loans
|
Allowance
for Loan Losses
|
% of Loans
by Type to Total Loans
|
Real estate loans - residential
|
$ 1,202
|
41.8%
|
$ 618
|
41.7%
|
$ 817
|
43.1%
|
$ 1,115
|
48.9%
|
$ 1,156
|
48.8%
|
Real estate loans - commercial and other
|
1,618
|
39.9%
|
1,065
|
37.2%
|
1,478
|
42.0%
|
1,802
|
37.6%
|
1,963
|
37.8%
|
Real estate loans - construction
|
90
|
6.3%
|
155
|
10.5%
|
57
|
6.5%
|
189
|
7.4%
|
360
|
9.3%
|
Home equity lines of credit
|
404
|
7.2%
|
163
|
6.8%
|
79
|
4.3%
|
54
|
2.4%
|
21
|
1.0%
|
Commercial loans
|
328
|
3.9%
|
343
|
2.9%
|
274
|
3.0%
|
272
|
3.0%
|
232
|
2.5%
|
Consumer loans
|
29
|
0.9%
|
36
|
0.9%
|
14
|
1.1%
|
-
|
0.7%
|
-
|
0.6%
|
Total
|
$ 3,671
|
100.0%
|
$ 2,380
|
100.0%
|
$ 2,719
|
100.0%
|
$ 3,432
|
100.0%
|
$ 3,732
|
100.0%
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 7. DELINQUENT LOANS
|
|||
At December 31,
|
|||
($ in thousands)
|
2010
|
2009
|
2008
|
30-89 Days
|
$ 3,349
|
$ 3,401
|
$ 5,231
|
90+ Days
|
7,594
|
4,164
|
2,011
|
Total
|
$ 10,943
|
$ 7,565
|
$ 7,242
|
Ratios
|
|||
Loans delinquent 90 days or more to total loans
|
3.95%
|
2.22%
|
1.25%
|
Total delinquent loans to total loans
|
5.69%
|
4.04%
|
4.50%
|
Allowance for loan losses to total delinquent loans
|
33.55%
|
31.46%
|
37.54%
|
TABLE 8. NONPERFORMING ASSETS
|
|||||
At December 31,
|
|||||
($ in thousands)
|
2010
|
2009
|
2008
|
2007
|
2006
|
Loans accounted for on a nonaccrual basis
|
$ 10,765
|
$ 4,164
|
$ 2,011
|
$ 1,438
|
$ 179
|
Foreclosed assets
|
1,358
|
2,489
|
461
|
-
|
-
|
Total nonperforming assets
|
$ 12,123
|
$ 6,653
|
$ 2,472
|
$ 1,438
|
$ 179
|
Loans greater than 90 days past due and accruing interest
|
-
|
-
|
-
|
-
|
-
|
Troubled debt restructures
|
2,668
|
-
|
-
|
-
|
-
|
Ratios
|
|||||
Nonperforming assets to loans plus foreclosed assets
|
6.26%
|
3.50%
|
1.53%
|
1.18%
|
0.18%
|
Nonperforming assets to total assets
|
4.60%
|
2.45%
|
1.11%
|
0.77%
|
0.11%
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 9. COMPOSITION OF INVESTMENT SECURITIES PORTFOLIO
|
||||||
At December 31,
|
||||||
2010
|
2009
|
2008
|
||||
($ in thousands)
|
Balance
|
Percent
|
Balance
|
Percent
|
Balance
|
Percent
|
Agency securities
|
$ 2,914
|
6.0%
|
$ 6,937
|
13.7%
|
$ 10,070
|
21.1%
|
Mortgage-backed securities
|
26,795
|
55.5%
|
32,678
|
64.8%
|
26,100
|
54.8%
|
Collateralized mortgage obligations
|
8,232
|
17.0%
|
1,433
|
2.8%
|
8,039
|
16.9%
|
Municipal securities
|
10,367
|
21.5%
|
7,013
|
13.9%
|
-
|
-
|
Mutual funds
|
-
|
-
|
2,394
|
4.8%
|
3,408
|
7.2%
|
Total investment securities at year end
|
$ 48,308
|
100.0%
|
$ 50,455
|
100.0%
|
$ 47,617
|
100.0%
|
Average investment securities during year
|
$ 52,498
|
$ 50,172
|
$ 49,113
|
|||
TABLE 10. DISTRIBUTION OF INVESTMENT SECURITY MATURITIES
|
||||||||||
At December 31, 2010
|
||||||||||
($ in thousands)
|
One year or less
|
Over one through five years
|
Over five through ten years
|
Over ten years
|
Total
|
|||||
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
|
U.S. Treasuy and agency securities
|
$ -
|
-
|
$ -
|
-
|
$ 1,913
|
2.38%
|
$ 1,001
|
5.55%
|
$ 2,914
|
3.45%
|
Municipal securities
|
-
|
-
|
1,129
|
4.24%
|
4,870
|
3.88%
|
4,368
|
4.15%
|
10,367
|
4.04%
|
Total
|
$ -
|
-
|
$ 1,129
|
4.24%
|
$ 6,783
|
3.46%
|
$ 5,369
|
4.41%
|
$ 13,281
|
3.91%
|
Percentage of total
|
-
|
8.5%
|
51.1%
|
40.4%
|
100.0%
|
|||||
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 11. INVESTMENT SECURITIES GREATER THAN 10% OF STOCKHOLDERS' EQUITY
|
||||
At December 31, 2010
|
||||
($ in thousands)
|
Type
|
Total Investment
|
% of Total Assets
|
% of Stockholders' Equity
|
Government National Mortgage Association
|
Mortgage-Backed Securities
|
$ 16,146
|
6.1%
|
58.3%
|
Federal National Mortgage Association
|
Agency Bonds and
|
8,888
|
3.4%
|
32.1%
|
Mortgage-Backed Securities
|
||||
Federal Home Loan Mortgage Corporation
|
Mortgage-Backed Securities and
|
10,001
|
3.8%
|
36.1%
|
Collateralized Mortgage Obligations
|
||||
Total
|
$ 35,035
|
13.3%
|
126.5%
|
|
TABLE 12. DEPOSIT COMPOSITION
|
||||||
At December 31,
|
||||||
2010
|
2009
|
2008
|
||||
($ in thousands)
|
Average Balances
|
% of
Deposits
|
Average
Balances
|
% of
Deposits
|
Average
Balances
|
% of
Deposits
|
Noninterest bearing demand deposits
|
$ 15,201
|
7.5%
|
$ 10,213
|
5.6%
|
$ 8,915
|
6.6%
|
NOW and MMDA account deposits
|
65,969
|
32.6%
|
63,874
|
34.8%
|
26,134
|
19.3%
|
Savings deposits
|
12,871
|
6.4%
|
13,693
|
7.4%
|
17,074
|
12.6%
|
Certificates of deposit
|
108,054
|
53.5%
|
95,830
|
52.2%
|
83,167
|
61.5%
|
Total
|
$ 202,095
|
100.0%
|
$ 183,610
|
100.0%
|
$ 135,290
|
100.0%
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 13. MATURITIES OF TIME DEPOSITS
|
||||
At December 31, 2010
|
||||
Less than
|
More than
|
Total
|
||
($ in thousands) | $100,000 | $100,000 |
Amount
|
Percentage
|
Three months or less
|
$ 20,867
|
$ 12,578
|
$ 33,445
|
29.7%
|
Over three months through six months
|
9,124
|
4,006
|
13,130
|
11.6%
|
Over six months through twelve months
|
18,520
|
15,261
|
33,781
|
29.9%
|
Over twelve months
|
19,224
|
13,243
|
32,467
|
28.8%
|
Total
|
$ 67,735
|
$ 45,088
|
$ 112,823
|
100.0%
|
TABLE 14. SUMMARY OF ADVANCES
|
|||||
At or For the Year Ended December 31,
|
|||||
($ in thousands)
|
2010
|
2009
|
2008
|
||
FHLB advances and other borrowings:
|
|||||
Average balance outstanding
|
$ 38,301
|
$ 45,408
|
$ 43,049
|
||
Maximum amount outstanding at any month-end during the period
|
40,472
|
51,896
|
52,926
|
||
Balance outstanding at end of period
|
35,398
|
40,512
|
52,002
|
||
Average interest rate during the period
|
3.65%
|
3.97%
|
4.11%
|
||
Weighted average interest rate at end of period
|
2.73%
|
4.10%
|
3.75%
|
||
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 15. SUMMARY OF STOCK REPURCHASES
|
|||
Year Ended December 31,
|
Shares
|
Cost
($000)
|
Average Price
Per Share
|
2006 and prior
|
2,172,232
|
$ 32,493
|
$ 14.96
|
2007
|
10,468
|
188
|
18.00
|
2008
|
-
|
-
|
-
|
2009
|
27,862
|
387
|
13.87
|
2010
|
-
|
-
|
-
|
Total stock repurchases
|
2,210,562
|
$ 33,068
|
$ 14.96
|
TABLE 16. CAPITAL AND RISK BASED CAPITAL RATIOS
|
|||
At December 31,
|
|||
($ in thousands)
|
2010
|
2009
|
2008
|
Tier 1 regulatory capital
|
$ 27,018
|
$ 26,510
|
$ 25,611
|
Tier 2 regulatory capital
|
1,840
|
1,613
|
1,772
|
Total regulatory capital
|
$ 28,858
|
$ 28,123
|
$ 27,383
|
Adjusted total assets
|
$ 262,088
|
$ 270,920
|
$ 221,614
|
Risk-weighted assets
|
$ 165,313
|
$ 164,373
|
$ 141,772
|
Ratios
|
|||
Tier 1 capital to adjusted total assets
|
10.31%
|
9.79%
|
11.56%
|
Tier 1 capital to risk-weighted assets
|
16.34%
|
16.13%
|
18.06%
|
Total regulatory capital to risk-weighted assets
|
17.46%
|
17.11%
|
19.31%
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 17. KEY LIQUIDITY INDICATORS
|
|||
At December 31,
|
|||
($ in thousands)
|
2010
|
2009
|
2008
|
Cash and cash equivalents
|
$ 10,254
|
$ 19,735
|
$ 3,205
|
Total loans
|
192,448
|
187,456
|
160,956
|
Total deposits
|
198,756
|
201,493
|
140,115
|
Deposits $100,000 and over
|
98,255
|
99,182
|
54,620
|
Ratios
|
|||
Total loans to total deposits
|
96.83%
|
93.03%
|
114.87%
|
Deposits $100,000 and over to total deposits
|
49.43%
|
49.22%
|
38.98%
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 18. ECONOMIC VALUE AT RISK AND EARNINGS AT RISK
|
|||||||
Change (Basis Point) in Interest Rates
|
|||||||
($ in thousands)
|
Down 300
|
Down 200
|
Down 100
|
Base Case
|
Up 100
|
Up 200
|
Up 300
|
At December 31, 2010
|
|||||||
Total assets
|
$ 272,155
|
$ 270,095
|
$ 267,955
|
$ 264,703
|
$ 259,973
|
$ 255,389
|
$ 250,719
|
Total liabilities
|
243,874
|
241,672
|
239,334
|
236,454
|
234,092
|
232,184
|
230,102
|
Economic value of equity
|
28,281
|
28,423
|
28,621
|
28,249
|
25,881
|
23,205
|
20,617
|
EVE at risk
|
0.11%
|
0.62%
|
1.32%
|
n/a
|
(8.38)%
|
(17.86)%
|
(27.02)%
|
Projected EAR For the Year Ended December 31, 2011
|
|||||||
Interest income
|
$ 12,889
|
$ 13,093
|
$ 13,302
|
$ 13,471
|
$ 13,701
|
$ 13,960
|
$ 14,234
|
Interest expense
|
3,113
|
3,114
|
3,133
|
3,305
|
3,626
|
3,975
|
4,309
|
Net interest income
|
9,776
|
9,979
|
10,168
|
10,166
|
10,075
|
9,985
|
9,925
|
Earnings at risk
|
(3.83)%
|
(1.84)%
|
0.02%
|
n/a
|
(0.89)%
|
(1.77)%
|
(2.37)%
|
TABLE 19. NET PORTFOLIO VALUE
|
||||||
At December 31,
|
||||||
($ in thousands)
|
2010
|
2009
|
||||
Change (Basis Point) in Interest Rates
|
$ Value
|
$ Change
|
% Change
|
$ Value
|
$ Change
|
% Change
|
+300
|
$ 26,261
|
$ (10,593)
|
(29)%
|
$ 23,475
|
$ (11,455)
|
(33)%
|
+200
|
30,499
|
(6,355)
|
(17)%
|
27,826
|
(7,104)
|
(20)%
|
+100
|
34,198
|
(2,656)
|
(7)%
|
31,857
|
(3,074)
|
(9)%
|
+50
|
35,629
|
(1,225)
|
(3)%
|
33,572
|
(1,358)
|
(4)%
|
0
|
36,854
|
-
|
-
|
34,930
|
-
|
-
|
-50
|
38,021
|
1,167
|
3%
|
36,397
|
1,467
|
4%
|
-100
|
39,979
|
3,125
|
8%
|
37,961
|
3,030
|
9%
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 20. SUMMARY OF AVERAGE BALANCES, NET INTEREST INCOME AND INTEREST RATES
|
|||||||||
Year Ended December 31,
|
2010
|
2009
|
2008
|
||||||
($ in thousands)
|
Average Balance
|
Interest
|
Average Yield/ Cost
|
Average Balance
|
Interest
|
Average Yield/ Cost
|
Average Balance
|
Interest
|
Average Yield/ Cost
|
ASSETS
|
|||||||||
INTEREST-EARNING ASSETS
|
|||||||||
Loans
¹
|
$ 190,536
|
$ 11,834
|
6.21%
|
$ 178,780
|
$ 11,804
|
6.60%
|
$ 141,892
|
$ 9,579
|
6.75%
|
U.S. Treasury and Agency securities
|
5,721
|
190
|
3.32%
|
9,118
|
388
|
4.26%
|
15,110
|
887
|
5.87%
|
Mortgage-backed securities
|
32,070
|
1,082
|
3.37%
|
30,402
|
1,369
|
4.50%
|
16,416
|
884
|
5.38%
|
Collateralized mortgage obligations
|
3,420
|
145
|
4.24%
|
5,939
|
353
|
5.94%
|
12,689
|
692
|
5.45%
|
Municipal securities
²
|
9,735
|
348
|
3.57%
|
1,850
|
70
|
3.78%
|
-
|
-
|
-
|
Mutual funds
|
1,553
|
51
|
3.28%
|
2,863
|
118
|
4.12%
|
4,898
|
224
|
4.57%
|
Total investment in securities
|
52,499
|
1,816
|
3.46%
|
50,172
|
2,298
|
4.58%
|
49,113
|
2,687
|
5.47%
|
FHLB stock
|
2,241
|
9
|
0.40%
|
2,350
|
6
|
0.26%
|
1,931
|
44
|
2.28%
|
Federal funds sold and interest-bearing deposits in other banks
|
10,345
|
61
|
0.59%
|
16,231
|
51
|
0.31%
|
1,520
|
116
|
7.63%
|
Total interest-earning assets
|
255,621
|
13,720
|
5.37%
|
247,533
|
14,159
|
5.72%
|
194,456
|
12,426
|
6.39%
|
NONINTEREST-EARNING ASSETS
|
|||||||||
Other assets
|
19,077
|
15,254
|
16,660
|
||||||
Allowance for loan losses
|
(3,249)
|
(2,680)
|
(3,115)
|
||||||
Total assets
|
$ 271,449
|
$ 260,107
|
$ 208,001
|
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
INTEREST-BEARING LIABILITIES
|
|||||||||
NOW and MMDA account deposits
|
$ 65,969
|
$ 677
|
1.03%
|
$ 63,874
|
$ 1,327
|
2.08%
|
$ 26,134
|
$ 633
|
2.42%
|
Savings deposits
|
12,871
|
63
|
0.49%
|
13,693
|
68
|
0.50%
|
17,074
|
130
|
0.76%
|
Time deposits
|
108,054
|
2,322
|
2.15%
|
95,830
|
2,887
|
3.01%
|
83,167
|
3,218
|
3.87%
|
Total interest-bearing deposits
|
186,894
|
3,062
|
1.64%
|
173,397
|
4,282
|
2.47%
|
126,375
|
3,981
|
3.15%
|
Borrowings
|
38,301
|
1,397
|
3.65%
|
45,408
|
1,802
|
3.97%
|
43,049
|
1,770
|
4.11%
|
Total interest-bearing liabilities
|
225,195
|
4,459
|
1.98%
|
218,805
|
6,084
|
2.78%
|
169,424
|
5,751
|
3.39%
|
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||||||
Demand deposits
|
15,201
|
10,213
|
8,915
|
||||||
Other liabilities
|
2,499
|
2,757
|
1,845
|
||||||
Stockholders' equity
|
28,554
|
28,332
|
27,817
|
||||||
Total liabilities and stockholders' equity
|
$ 271,449
|
$ 260,107
|
$ 208,001
|
||||||
Net interest income and margin
³
|
$9,261
|
3.62%
|
$8,075
|
3.26%
|
$6,675
|
3.43%
|
|||
Net interest-earning assets and spread
|
$30,426
|
3.39%
|
$28,728
|
2.94%
|
$25,032
|
3.00%
|
|||
Cost of funding interest-earning assets
|
1.74%
|
2.46%
|
2.96%
|
1
|
Includes nonaccrual loans during the respective periods. The average loan balance had been calculated net of deferred fees and discounts, loans in process, and the allowance for loan losses.
|
2
|
The tax-exempt income from municipal securities in 2010 and 2009 has not been calculated on a tax equivalent basis.
|
3
|
Net interest margin equals net interest income divided by average interest-earning assets.
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 21. SUMMARY OF CHANGES IN NET INTEREST INCOME
|
||||||
2010 Compared to 2009
|
2009 Compared to 2008
|
|||||
Due to Change in
|
Total
Increase
|
Due to Change in
|
Total
Increase
|
|||
($ in thousands)
|
Volume
|
Rate
|
(Decrease) |
Volume
|
Rate
|
(Decrease) |
INTEREST INCOME
|
||||||
Loans
|
$ 776
|
$ (746)
|
$ 30
|
$ 2,490
|
$ (265)
|
$ 2,225
|
U.S. Treasury and Agency securities
|
(145)
|
(53)
|
(198)
|
(352)
|
(147)
|
(499)
|
Mortgage-backed securities
|
75
|
(362)
|
(287)
|
753
|
(268)
|
485
|
Collateralized mortgage obligations
|
(150)
|
(58)
|
(208)
|
(368)
|
29
|
(339)
|
Municipal Securities
|
298
|
(20)
|
278
|
70
|
-
|
70
|
Mutual funds
|
(54)
|
(13)
|
(67)
|
(93)
|
(13)
|
(106)
|
Total investment in securities
|
24
|
(506)
|
(482)
|
10
|
(399)
|
(389)
|
FHLB stock
|
-
|
3
|
3
|
10
|
(48)
|
(38)
|
Federal funds sold and interest-bearing deposits in other banks
|
(18)
|
28
|
10
|
1,123
|
(1,188)
|
(65)
|
Total interest income
|
782
|
(1,221)
|
(439)
|
3,633
|
(1,900)
|
1,733
|
INTEREST EXPENSE
|
||||||
NOW and MMDA account deposits
|
44
|
(694)
|
(650)
|
914
|
(220)
|
694
|
Savings deposits
|
(4)
|
(1)
|
(5)
|
(26)
|
(36)
|
(62)
|
Time deposits
|
368
|
(933)
|
(565)
|
490
|
(821)
|
(331)
|
Total interest-bearing deposits
|
408
|
(1,628)
|
(1,220)
|
1,378
|
(1,077)
|
301
|
Borrowings
|
(282)
|
(123)
|
(405)
|
97
|
(65)
|
32
|
Total interest expense
|
126
|
(1,751)
|
(1,625)
|
1,475
|
(1,142)
|
333
|
Change in net interest income
|
$ 656
|
$ 530
|
$ 1,186
|
$ 2,158
|
$ (758)
|
$ 1,400
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 22. NONINTEREST INCOME
|
||
($ in thousands)
|
2010
|
2009
|
Service charges on deposit accounts
|
$ 58
|
$ 64
|
ATM fees
|
27
|
23
|
Early closing penalties
|
10
|
12
|
Rental income
|
56
|
56
|
Gain on sales of mortgage loans
|
804
|
1,034
|
Net gain on securities transactions
|
1,010
|
4
|
(Loss) Gain on sales of foreclosed assets
|
(6)
|
35
|
Gain on sale of premises & equipment
|
-
|
134
|
Mortgage servicing fees, net
|
(32)
|
(43)
|
Miscellaneous
|
83
|
11
|
Total noninterest income
|
$ 2,010
|
$ 1,330
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 23. NONINTEREST EXPENSE
|
||
($ in thousands)
|
2010
|
2009
|
Employee compensation and benefits
|
$ 3,959
|
$ 3,855
|
Net occupancy expense
|
1,063
|
878
|
Ad Valorem taxes
|
186
|
187
|
Data processing costs
|
491
|
394
|
Advertising
|
76
|
90
|
ATM expenses
|
52
|
52
|
Professional fees
|
509
|
566
|
Deposit insurance and supervisory fees
|
397
|
400
|
Printing and office supplies
|
135
|
136
|
Telephone and security expense
|
113
|
120
|
Impairment of other real estate owned
|
425
|
436
|
Other real estate owned expense
|
148
|
70
|
Other operating expenses
|
503
|
345
|
Total noninterest expense
|
$ 8,057
|
$ 7,529
|
Efficiency ratio
|
71.48%
|
80.06%
|
GS Financial Corp. and Subsidiary |
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
TABLE 24. CONTRACTUAL OBLIGATIONS
|
|||||
($ in thousands)
|
Payments Due By Period From December 31, 2010
|
||||
Less Than
|
1 to 3
|
3 to 5
|
More Than
|
||
Total |
1 Year
|
Years | Years |
5 Years
|
|
Federal Home Loan Bank advances
|
$ 35,398
|
$ 1,250
|
$ 25,533
|
$ 8,615
|
$ -
|
Operating leases on banking facilities
|
200
|
60
|
120
|
20
|
-
|
Purchase obligation on banking facilities
|
44
|
44
|
-
|
-
|
-
|
Total obligations
|
$ 35,642
|
$ 1,354
|
$ 25,653
|
$ 8,635
|
$ -
|
TABLE 25. OFF-BALANCE SHEET OBLIGATIONS
|
|||||
($ in thousands)
|
Commitments Due By Period From December 31, 2010
|
||||
Less Than
|
More Than
|
||||
Total |
1 Year
|
1 to 3 Years | 3 to 5 Years |
5 Years
|
|
Mortgage loan commitments
|
$ 2,414
|
$ 2,414
|
$ -
|
$ -
|
$ -
|
Construction loan commitments
|
4,061
|
4,061
|
-
|
-
|
-
|
Unused portions of lines of credit
|
11,990
|
11,990
|
-
|
-
|
-
|
Letters of credit
|
215
|
215
|
-
|
-
|
-
|
Commercial loan commitments
|
911
|
911
|
-
|
-
|
-
|
Consumer loan commitments
|
-
|
-
|
-
|
-
|
-
|
Total obligations
|
$ 19,591
|
$ 19,591
|
$ -
|
$ -
|
$ -
|
Management’s Report On Internal Control Over Financial Reporting
|
December 31,
|
||||||||
2010
|
2009
|
|||||||
ASSETS
|
(In Thousands)
|
|||||||
Cash and Cash Equivalents
|
||||||||
Cash and Amounts Due from Depository Institutions
|
$ | 4,270 | $ | 7,158 | ||||
Interest-Bearing Deposits in Other Banks
|
5,267 | 9,293 | ||||||
Federal Funds Sold
|
717 | 3,284 | ||||||
Total Cash and Cash Equivalents
|
10,254 | 19,735 | ||||||
Securities Available-for-Sale, at Fair Value
|
48,308 | 50,455 | ||||||
Loans, Net of Allowance for Loan Losses of $3,671 and
|
||||||||
$2,380, Respectively
|
189,229 | 185,500 | ||||||
Accrued Interest Receivable
|
1,498 | 1,518 | ||||||
Other Real Estate
|
1,358 | 2,489 | ||||||
Premises and Equipment, Net
|
6,819 | 5,934 | ||||||
Stock in Federal Home Loan Bank, at Cost
|
1,702 | 2,354 | ||||||
Real Estate Held-for-Investment, Net
|
418 | 427 | ||||||
Other Assets
|
4,225 | 3,192 | ||||||
Total Assets
|
$ | 263,811 | $ | 271,604 | ||||
LIABILITIES
|
||||||||
Deposits
|
||||||||
Noninterest-Bearing
|
$ | 15,696 | $ | 14,812 | ||||
Interest-Bearing
|
183,060 | 186,681 | ||||||
Total Deposits
|
198,756 | 201,493 | ||||||
Advance Payments by Borrowers for Taxes and Insurance
|
223 | 249 | ||||||
FHLB Advances
|
35,398 | 40,512 | ||||||
Other Liabilities
|
1,744 | 1,329 | ||||||
Total Liabilities
|
236,121 | 243,583 | ||||||
STOCKHOLDERS' EQUITY
|
||||||||
Preferred Stock - $.01 Par Value; 5,000,000 Shares Authorized,
|
||||||||
None Issued
|
- | - | ||||||
Common Stock - $.01 Par Value; 20,000,000 Shares Authorized
|
||||||||
3,438,500 Shares Issued; 1,257,938 Shares Outstanding
|
||||||||
in 2010 and 2009
|
34 | 34 | ||||||
Additional Paid-In Capital
|
34,541 | 34,550 | ||||||
Unearned RRP Trust Stock
|
(105 | ) | (132 | ) | ||||
Treasury Stock (2,180,562 Shares in 2010 and 2009) at Cost
|
(32,449 | ) | (32,449 | ) | ||||
Retained Earnings
|
25,685 | 25,780 | ||||||
Accumulated Other Comprehensive (Loss) Income
|
(16 | ) | 238 | |||||
Total Stockholders' Equity
|
27,690 | 28,021 | ||||||
Total Liabilities and Stockholders' Equity
|
$ | 263,811 | $ | 271,604 | ||||
|
||||||||
|
||||||||
For the Years Ended
|
||||||||
December 31,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands, Except Per Share Data)
|
||||||||
INTEREST AND DIVIDED INCOME
|
||||||||
Loans, Including Fees
|
$ | 11,834 | $ | 11,804 | ||||
Investment Securities
|
1,816 | 2,298 | ||||||
Other Interest Income
|
70 | 57 | ||||||
Total Interest Income
|
13,720 | 14,159 | ||||||
INTEREST EXPENSE
|
||||||||
Deposits
|
3,062 | 4,282 | ||||||
Advances from Federal Home Loan Bank
|
1,397 | 1,802 | ||||||
Total Interest Expense
|
4,459 | 6,084 | ||||||
NET INTEREST INCOME
|
9,261 | 8,075 | ||||||
PROVISION FOR LOAN LOSSES
|
2,800 | 500 | ||||||
NET INTEREST INCOME AFTER PROVISION
|
||||||||
FOR LOAN LOSSES
|
6,461 | 7,575 | ||||||
NONINTEREST INCOME
|
||||||||
Gain on Sale of Loans
|
804 | 1,034 | ||||||
Gain on Securities Transactions
|
1,010 | 4 | ||||||
Gain on Sale of Premises and Equipment
|
- | 134 | ||||||
Customer Service Fees
|
95 | 99 | ||||||
Other Income
|
101 | 59 | ||||||
Total Noninterest Income
|
2,010 | 1,330 | ||||||
NONINTEREST EXPENSE
|
||||||||
Salaries and Employee Benefits
|
3,959 | 3,855 | ||||||
Occupancy Expense
|
1,063 | 878 | ||||||
Ad Valorem Taxes
|
186 | 187 | ||||||
Loss on Write-Down of Other Real Estate
|
425 | 436 | ||||||
Other Expenses
|
2,424 | 2,173 | ||||||
Total Noninterest Expense
|
8,057 | 7,529 | ||||||
INCOME BEFORE INCOME TAX EXPENSE
|
414 | 1,376 | ||||||
INCOME TAX EXPENSE
|
7 | 490 | ||||||
NET INCOME
|
$ | 407 | $ | 886 | ||||
EARNINGS PER SHARE - BASIC
|
$ | 0.33 | $ | 0.70 | ||||
EARNINGS PER SHARE - DILUTED
|
$ | 0.33 | $ | 0.70 | ||||
For the Years Ended
|
||||||||
December 31,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
NET INCOME
|
$ | 407 | $ | 886 | ||||
OTHER COMPREHENSIVE INCOME,
|
||||||||
NET OF TAX
|
||||||||
Unrealized Holding (Losses) Gains
|
||||||||
Arising During the Period
|
(921 | ) | 456 | |||||
Reclassification Adjustment for Gains
|
||||||||
Included in Net Income
|
667 | 3 | ||||||
Total Other Comprehensive (Loss) Income
|
(254 | ) | 459 | |||||
COMPREHENSIVE INCOME
|
$ | 153 | $ | 1,345 | ||||
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Unearned
|
Other
|
Total
|
|||||||||||||||||||||||||
Common
|
Paid-In
|
Treasury
|
RRP Trust
|
Retained
|
Comprehensive
|
Stockholders'
|
||||||||||||||||||||||
Stock
|
Capital
|
Stock
|
Stock
|
Earnings
|
(Loss) Income
|
Equity
|
||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
BALANCES AT JANUARY 1, 2009
|
$ | 34 | $ | 34,546 | $ | (32,062 | ) | $ | (143 | ) | $ | 25,404 | $ | (221 | ) | $ | 27,558 | |||||||||||
Distribution of RRP Trust Stock
|
- | 4 | - | 11 | - | - | 15 | |||||||||||||||||||||
Purchase of Treasury Stock
|
- | - | (387 | ) | - | - | - | (387 | ) | |||||||||||||||||||
Dividends Declared
|
- | - | - | - | (510 | ) | - | (510 | ) | |||||||||||||||||||
Net Income - Year Ended December 31, 2009
|
- | - | - | - | 886 | - | 886 | |||||||||||||||||||||
Other Comprehensive Gain, Net of Applicable
|
||||||||||||||||||||||||||||
Deferred Income Taxes
|
- | - | - | - | - | 459 | 459 | |||||||||||||||||||||
BALANCES AT DECEMBER 31, 2009
|
34 | 34,550 | (32,449 | ) | (132 | ) | 25,780 | 238 | 28,021 | |||||||||||||||||||
Distribution of RRP Trust Stock
|
- | (9 | ) | - | 27 | - | - | 18 | ||||||||||||||||||||
Dividends Declared
|
- | - | - | - | (502 | ) | - | (502 | ) | |||||||||||||||||||
Net Income - Year Ended December 31, 2010
|
- | - | - | - | 407 | - | 407 | |||||||||||||||||||||
Other Comprehensive Loss, Net of Applicable
|
||||||||||||||||||||||||||||
Deferred Income Taxes
|
- | - | - | - | - | (254 | ) | (254 | ) | |||||||||||||||||||
BALANCES AT DECEMBER 31, 2010
|
$ | 34 | $ | 34,541 | $ | (32,449 | ) | $ | (105 | ) | $ | 25,685 | $ | (16 | ) | $ | 27,690 | |||||||||||
For the Years Ended
|
||||||||
December 31,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net Income
|
$ | 407 | $ | 886 | ||||
Adjustments to Reconcile Net Income to Net Cash
|
||||||||
Provided by Operating Activities:
|
||||||||
Depreciation and Amortization
|
374 | 290 | ||||||
Premium Amortization, Net
|
288 | 166 | ||||||
Amortization of Mortgage Servicing Rights
|
236 | 166 | ||||||
Provision for Loan Losses
|
2,800 | 500 | ||||||
Federal Home Loan Bank Stock Dividends
|
(9 | ) | (6 | ) | ||||
RRP Expense
|
18 | 15 | ||||||
Gain on Sales of Loans, Net
|
(804 | ) | (1,034 | ) | ||||
Loss (Gain) on Sales of Other Real Estate, Net
|
6 | (35 | ) | |||||
Gain on Sales of Investments, Net
|
(1,010 | ) | (4 | ) | ||||
Gain on Sales of Premises and Equipment
|
- | (134 | ) | |||||
Loss on Write-Down of Other Real Estate
|
425 | 436 | ||||||
Originations of Loans Held for Sale
|
(29,670 | ) | (56,565 | ) | ||||
Proceeds from Sales of Loans Held for Sale
|
30,133 | 56,948 | ||||||
Deferred Income Tax Benefit
|
(923 | ) | (51 | ) | ||||
Changes in Operating Assets and Liabilities:
|
||||||||
Accrued Interest Receivable and Other Assets
|
(233 | ) | (919 | ) | ||||
Accrued Interest Payable and Other Liabilities
|
794 | (616 | ) | |||||
Net Cash Provided by Operating Activities
|
2,832 | 43 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Proceeds from Maturities of Investment Securities
|
10,940 | 21,280 | ||||||
Proceeds from Sales of Investment Securities
|
22,406 | 5,522 | ||||||
Purchases of Investment Securities
|
(33,308 | ) | (30,107 | ) | ||||
Redemption of Mutual Funds, Net
|
2,446 | 1,000 | ||||||
Loan Originations and Principal Collections, Net
|
(8,124 | ) | (30,039 | ) | ||||
Purchases of Premises and Equipment
|
(1,250 | ) | (516 | ) | ||||
Proceeds from Sales of Premises and Equipment
|
- | 191 | ||||||
Proceeds from Sales of Other Real Estate
|
2,295 | 131 | ||||||
Purchase of Federal Home Loan Bank Stock
|
- | (48 | ) | |||||
Redemption of Federal Home Loan Bank Stock
|
661 | - | ||||||
Net Cash Used in Investing Activities
|
(3,934 | ) | (32,586 | ) | ||||
For the Years Ended
|
||||||||
December 31,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Purchase of Treasury Stock
|
$ | - | $ | (387 | ) | |||
Decrease in Federal Home Loan Bank Advances
|
(5,114 | ) | (11,490 | ) | ||||
Payment of Cash Stock Dividends
|
(502 | ) | (510 | ) | ||||
(Decrease) Increase in Deposits
|
(2,737 | ) | 61,378 | |||||
(Decrease) Increase in Deposit for Insurance and Taxes
|
(26 | ) | 82 | |||||
Net Cash (Used in) Provided by Financing Activities
|
(8,379 | ) | 49,073 | |||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
(9,481 | ) | 16,530 | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
19,735 | 3,205 | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR
|
$ | 10,254 | $ | 19,735 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
Cash Paid During the Year for:
|
||||||||
Interest
|
$ | 4,517 | $ | 6,107 | ||||
Income Taxes
|
75 | 664 | ||||||
Loans Transferred to Other Real Estate
|
||||||||
During the Year
|
1,595 | 2,560 | ||||||
Market Value Adjustment for (Loss) Gain
|
||||||||
on Securities Available-for-Sale
|
(385 | ) | 695 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements
|
|
GS FINANCIAL CORP.
(“Company”) was organized as a Louisiana corporation on December 24, 1996, for the purpose of becoming the holding company of Guaranty Savings and Homestead Association (“Association”) in anticipation of converting the Association from a Louisiana chartered mutual savings and loan association to a Louisiana chartered stock savings and loan association. In June 2006, the Association changed its name to Guaranty Savings Bank (“Bank”). The Company operates in the banking/savings and loan industry and, as such, provides financial services to individuals, corporate entities, and other organizations through the origination of loans and the acceptance of deposits in the form of demand deposit accounts, money market accounts, savings accounts, and certificates of deposit.
|
|
The Company is subject to competition from other financial institutions and is subject to the regulations of Federal agencies. The Company undergoes periodic examinations by those regulatory authorities.
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
|
The Company expenses advertising costs as incurred. Advertising costs were $76,000, and $90,000 for the years ended December 31, 2010 and 2009, respectively.
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
|
Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of stockholders’ equity in the balance sheets; such items, along with net income, are components of comprehensive income.
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
December 31, 2010
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Debt Securities:
|
||||||||||||||||
U.S. Government and Federal Agencies
|
$ | 2,952 | $ | 1 | $ | 39 | $ | 2,914 | ||||||||
Mortgage-Backed Securities
|
26,618 | 333 | 156 | 26,795 | ||||||||||||
Collateralized Mortgage Obligations
|
8,411 | 31 | 210 | 8,232 | ||||||||||||
Municipal Funds
|
10,355 | 95 | 83 | 10,367 | ||||||||||||
Total Securities Available-for-Sale
|
$ | 48,336 | $ | 460 | $ | 488 | $ | 48,308 | ||||||||
December 31, 2009
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Debt Securities:
|
||||||||||||||||
U.S. Government and Federal Agencies
|
$ | 7,132 | $ | - | $ | 195 | $ | 6,937 | ||||||||
Mortgage-Backed Securities
|
31,913 | 875 | 110 | 32,678 | ||||||||||||
Collateralized Mortgage Obligations
|
1,612 | - | 179 | 1,433 | ||||||||||||
Municipal Funds
|
7,044 | 24 | 55 | 7,013 | ||||||||||||
Total Debt Securities
|
47,701 | 899 | 539 | 48,061 | ||||||||||||
Marketable Equity Securities:
|
||||||||||||||||
Mutual Funds
|
2,394 | - | - | 2,394 | ||||||||||||
Total Securities Available-for-Sale
|
$ | 50,095 | $ | 899 | $ | 539 | $ | 50,455 | ||||||||
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
Securities | ||||||||
Available for Sale | ||||||||
Amortized | Fair | |||||||
Cost | Value | |||||||
(In Thousands)
|
||||||||
Amounts Maturing in:
|
||||||||
Less than One Year
|
$ | - | $ | - | ||||
One to Five Years
|
1,099 | 1,129 | ||||||
Five to Ten Years
|
6,770 | 6,783 | ||||||
Greater than Ten Years | 5,438 | 5,369 | ||||||
13,307 | 13,281 | |||||||
Mortgage-Backed Securities | 26,618 | 26,795 | ||||||
Collateralized Mortgage Obligations | 8,411 | 8,232 | ||||||
$ | 48,336 | $ | 48,308 | |||||
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
Less Than Twelve Months
|
Over Twelve Months
|
|||||||||||||||
December 31, 2010
|
Gross Unrealized Losses
|
Fair Value
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
(In Thousands)
|
||||||||||||||||
U.S. Government and Federal
|
||||||||||||||||
Agencies
|
$ | 39 | $ | 1,913 | $ | - | $ | - | ||||||||
Mortgage-Backed Securities
|
156 | 9,836 | - | - | ||||||||||||
Collateralized Mortgage Obligations
|
94 | 3,053 | 116 | 994 | ||||||||||||
Municipal Funds
|
83 | 4,712 | - | - | ||||||||||||
Total Securities
|
$ | 372 | $ | 19,514 | $ | 116 | $ | 994 | ||||||||
Less Than Twelve Months
|
Over Twelve Months
|
|||||||||||||||
December 31, 2009
|
Gross Unrealized Losses
|
Fair Value
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
(In Thousands)
|
||||||||||||||||
U.S. Government and Federal
|
||||||||||||||||
Agencies
|
$ | 195 | $ | 6,937 | $ | - | $ | - | ||||||||
Mortgage-Backed Securities
|
105 | 9,923 | 5 | 616 | ||||||||||||
Collateralized Mortgage Obligations
|
1 | 69 | 178 | 1,364 | ||||||||||||
Municipal Funds
|
55 | 3,564 | - | - | ||||||||||||
Total Securities
|
$ | 356 | $ | 20,493 | $ | 183 | $ | 1,980 | ||||||||
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
December 31, | ||||||||
2010 | 2009 | |||||||
(In Thousands) | ||||||||
Loans Secured by Mortgages on Real Estate:
|
||||||||
1-4 Family Residential
|
$ | 80,353 | $ | 78,160 | ||||
Commercial Real Estate
|
61,289 | 54,640 | ||||||
Construction
|
12,130 | 19,728 | ||||||
Home Equity Lines of Credit
|
13,945 | 12,760 | ||||||
Other Real Estate
|
15,479 | 15,018 | ||||||
Total Real Estate Loans
|
183,196 | 180,306 | ||||||
Consumer Loans
|
1,729 | 1,728 | ||||||
Commercial Loans
|
7,523 | 5,422 | ||||||
Total Loans
|
192,448 | 187,456 | ||||||
Allowance for Loan Losses
|
(3,671 | ) | (2,380 | ) | ||||
Net Deferred Loan Origination Costs
|
452 | 424 | ||||||
Loans, Net
|
$ | 189,229 | $ | 185,500 | ||||
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
Pass Credits
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
( In Thousands)
|
||||||||||||||||||||
Real Estate Loans - Residential
|
$ | 73,495 | $ | 1,003 | $ | 4,965 | $ | 890 | $ | 80,353 | ||||||||||
Real Estate Loans - Commercial & Other:
|
||||||||||||||||||||
Commercial
|
55,994 | 359 | 3,548 | 1,388 | 61,289 | |||||||||||||||
Multifamily
|
8,909 | - | - | - | 8,909 | |||||||||||||||
Vacant Land
|
5,455 | - | 272 | 843 | 6,570 | |||||||||||||||
Real Estate Loans - Construction
|
12,130 | - | - | - | 12,130 | |||||||||||||||
Home Equity Lines of Credit
|
12,980 | 313 | 419 | 233 | 13,945 | |||||||||||||||
Commercial Loans
|
7,208 | - | - | 315 | 7,523 | |||||||||||||||
Consumer Loans
|
1,729 | - | - | - | 1,729 | |||||||||||||||
Total at December 31, 2010
|
$ | 177,900 | $ | 1,675 | $ | 9,204 | $ | 3,669 | $ | 192,448 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
30-59 Days Past Due
|
60-89 Days Past Due
|
90 Days or More Past Due
|
Total Past Due Loans
|
Current Loans
|
Total Loans
|
|||||||||||||||||||
( In Thousands)
|
||||||||||||||||||||||||
Real Estate Loans - Residential
|
$ | 1,951 | $ | 422 | $ | 4,270 | $ | 6,643 | $ | 73,710 | $ | 80,353 | ||||||||||||
Real Estate Loans - Commercial & Other:
|
||||||||||||||||||||||||
Commercial
|
442 | - | 2,270 | 2,712 | 58,577 | 61,289 | ||||||||||||||||||
Multifamily
|
- | - | - | - | 8,909 | 8,909 | ||||||||||||||||||
Vacant Land
|
78 | - | 1,038 | 1,116 | 5,454 | 6,570 | ||||||||||||||||||
Real Estate Loans - Construction
|
- | - | - | - | 12,130 | 12,130 | ||||||||||||||||||
Home Equity Lines of Credit
|
276 | 176 | 16 | 468 | 13,477 | 13,945 | ||||||||||||||||||
Commercial Loans
|
- | - | - | - | 7,523 | 7,523 | ||||||||||||||||||
Consumer Loans
|
4 | - | - | 4 | 1,725 | 1,729 | ||||||||||||||||||
Total
|
$ | 2,751 | $ | 598 | $ | 7,594 | $ | 10,943 | $ | 181,505 | $ | 192,448 | ||||||||||||
2010
|
||||||||||||
Number of Contracts
|
Pre-Modification Recorded Investment
|
Post-Modification Recorded Investment
|
||||||||||
( In Thousands)
|
||||||||||||
Troubled Debt Restructurings that
|
||||||||||||
Have Not Subsequently Defaulted:
|
||||||||||||
Real Estate Loans - Commercial & Other:
|
2 | $ | 2,076 | $ | 2,076 | |||||||
Troubled Debt Restructurings that
|
||||||||||||
Have Subsequently Defaulted:
|
||||||||||||
Real Estate Loans - Residential
|
1 | $ | 592 | $ | 592 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
December 31,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
Balance, Beginning of Year
|
$ | 46 | $ | 405 | ||||
Additions
|
- | - | ||||||
Payments and Renewals
|
(46 | ) | (359 | ) | ||||
Balance, End of Year
|
$ | - | $ | 46 |
Years Ended December 31,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
Balance, Beginning of Year
|
$ | 2,380 | $ | 2,719 | ||||
Charge-offs
|
(1,615 | ) | (854 | ) | ||||
Recoveries
|
106 | 15 | ||||||
Provision for Loan Losses
|
2,800 | 500 | ||||||
Balance, End of Year
|
$ | 3,671 | $ | 2,380 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
Real Estate | ||||||||||||||||||||||||||||
Real Estate | Loans - | Real Estate | Home | |||||||||||||||||||||||||
Loans - | Commercial | Loans - | Equity Lines | Commercial | Consumer | |||||||||||||||||||||||
Residential | & Other | Construction | of Credit | Loans | Loans | Total | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Allowance for Loan Losses:
|
||||||||||||||||||||||||||||
Beginning Balance
|
$ | 618 | $ | 1,065 | $ | 155 | $ | 163 | $ | 343 | $ | 36 | $ | 2,380 | ||||||||||||||
Charge-offs
|
(241 | ) | (1,067 | ) | - | (210 | ) | (58 | ) | (39 | ) | (1,615 | ) | |||||||||||||||
Recoveries
|
100 | - | - | - | - | 6 | 106 | |||||||||||||||||||||
Provision
|
725 | 1,620 | (65 | ) | 451 | 43 | 26 | 2,800 | ||||||||||||||||||||
Ending Balance
|
$ | 1,202 | $ | 1,618 | $ | 90 | $ | 404 | $ | 328 | $ | 29 | $ | 3,671 | ||||||||||||||
Period-end Amount Allocated to:
|
||||||||||||||||||||||||||||
Loans Individually Evaluated
|
$ | 700 | $ | 742 | $ | - | $ | 225 | $ | 165 | $ | - | $ | 1,832 | ||||||||||||||
for Impairment
|
||||||||||||||||||||||||||||
Loans Collectively Evaluated
|
502 | 876 | 90 | 179 | 163 | 29 | 1,839 | |||||||||||||||||||||
for Impairment
|
||||||||||||||||||||||||||||
Total
|
$ | 1,202 | $ | 1,618 | $ | 90 | $ | 404 | $ | 328 | $ | 29 | $ | 3,671 | ||||||||||||||
Loans:
|
||||||||||||||||||||||||||||
Individually Evaluated for
|
$ | 5,855 | $ | 6,052 | $ | - | $ | 652 | $ | 314 | $ | - | $ | 12,873 | ||||||||||||||
Impairment
|
||||||||||||||||||||||||||||
Collectively Evaluated for
|
74,498 | 70,716 | 12,130 | 13,293 | 7,209 | 1,729 | 179,575 | |||||||||||||||||||||
Impairment
|
||||||||||||||||||||||||||||
Total
|
$ | 80,353 | $ | 76,768 | $ | 12,130 | $ | 13,945 | $ | 7,523 | $ | 1,729 | $ | 192,448 | ||||||||||||||
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
Unpaid Principal Balance
|
Recorded Investment With No Allowance
|
Recorded Investment With Allowance
|
Total Recorded Investment
|
Related Allowance
|
Average Recorded Investment
|
|||||||||||||||||||
( In Thousands) | ||||||||||||||||||||||||
Real Estate Loans - Residential
|
$ | 5,889 | $ | 2,111 | $ | 3,745 | $ | 5,856 | $ | 700 | $ | 4,164 | ||||||||||||
Real Estate Loans - Commercial & Other:
|
||||||||||||||||||||||||
Commercial
|
5,302 | 2,630 | 2,306 | 4,936 | 369 | 3,239 | ||||||||||||||||||
Multifamily
|
- | - | - | - | - | 445 | ||||||||||||||||||
Vacant Land
|
1,512 | 81 | 1,034 | 1,115 | 373 | 598 | ||||||||||||||||||
Real Estate Loans - Construction
|
- | - | - | - | - | - | ||||||||||||||||||
Home Equity Lines of Credit
|
652 | 419 | 233 | 652 | 225 | 404 | ||||||||||||||||||
Commercial Loans
|
320 | - | 314 | 314 | 165 | 396 | ||||||||||||||||||
Consumer Loans
|
- | - | - | - | - | 7 | ||||||||||||||||||
Total
|
$ | 13,675 | $ | 5,241 | $ | 7,632 | $ | 12,873 | $ | 1,832 | $ | 9,253 |
2010
|
2009
|
|||||||
( In Thousands)
|
||||||||
Real Estate Loans - Residential
|
$ | 4,853 | $ | 2,171 | ||||
Real Estate Loans - Commercial & Other:
|
||||||||
Commercial
|
4,346 | 1,548 | ||||||
Multifamily
|
- | 193 | ||||||
Vacant Land
|
1,038 | 80 | ||||||
Real Estate Loans - Construction
|
- | - | ||||||
Home Equity Lines of Credit
|
213 | 100 | ||||||
Commercial Loans
|
315 | 58 | ||||||
Consumer Loans
|
- | 14 | ||||||
Total
|
$ | 10,765 | $ | 4,164 | ||||
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
December 31, | ||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
Loans
|
$ | 1,203 | $ | 1,197 | ||||
Securities
|
295 | 321 | ||||||
Total Accrued Interest
|
$ | 1,498 | $ | 1,518 |
December 31, | ||||||||
2010 |
2009
|
|||||||
(In Thousands)
|
||||||||
Land
|
$ | 2,618 | $ | 2,618 | ||||
Buildings and Improvements
|
4,462 | 3,546 | ||||||
Furniture, Fixtures, and Equipment
|
1,831 | 1,678 | ||||||
Total Premises and Equipment
|
8,911 | 7,842 | ||||||
Accumulated Depreciation and Amortization
|
(2,092 | ) | (1,908 | ) | ||||
Total Premises and Equipment, Net
|
$ | 6,819 | $ | 5,934 |
|
Depreciation expense for the years ended December 31, 2010 and 2009, was approximately $365,000 and $281,000, respectively.
|
December 31, | ||||||||
2010 | 2009 | |||||||
(In Thousands)
|
||||||||
Land
|
$ | 226 | $ | 226 | ||||
Buildings and Improvements
|
320 | 320 | ||||||
Total Real Estate Held-for-Investment
|
546 | 546 | ||||||
Accumulated Depreciation and Amortization
|
(128 | ) | (119 | ) | ||||
Total Real Estate Held-for-Investment, Net
|
$ | 418 | $ | 427 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
Weighted Average | ||||||||||||||||||||||||
Rate at | Account Balances at December 31, | |||||||||||||||||||||||
December 31, | 2010 | 2009 | ||||||||||||||||||||||
2010 | 2009 | Amount | Percent | Amount | Percent | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Balance by Interest Rate:
|
||||||||||||||||||||||||
NOW and MMDA Accounts
|
0.77 | % | 1.36 | % | $ | 57,073 | 31.2 | % | $ | 74,260 | 39.8 | % | ||||||||||||
Savings Accounts
|
0.40 | % | 0.50 | % | 13,164 | 7.2 | % | 12,832 | 6.9 | % | ||||||||||||||
Certificates of Deposit
|
1.91 | % | 2.57 | % | 112,823 | 61.6 | % | 99,589 | 53.3 | % | ||||||||||||||
$ | 183,060 | 100.0 | % | $ | 186,681 | 100.0 | % | |||||||||||||||||
Certificates Accounts Maturing:
|
||||||||||||||||||||||||
One Year or Less
|
$ | 80,356 | 71.2 | % | $ | 74,278 | 74.6 | % | ||||||||||||||||
One to Two Years
|
24,136 | 21.4 | % | 15,461 | 15.5 | % | ||||||||||||||||||
Two to Three Years
|
4,749 | 4.2 | % | 7,319 | 7.4 | % | ||||||||||||||||||
Three to Five Years
|
3,582 | 3.2 | % | 2,531 | 2.5 | % | ||||||||||||||||||
$ | 112,823 | 100.0 | % | $ | 99,589 | 100.0 | % | |||||||||||||||||
Years Ended December 31,
|
||||||||
2010
|
2009
|
|||||||
( In Thousands)
|
||||||||
NOW and MMDA Accounts
|
$ | 677 | $ | 1,327 | ||||
Savings Accounts
|
63 | 68 | ||||||
Certificates of Deposit
|
2,322 | 2,887 | ||||||
$ | 3,062 | $ | 4,282 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
FHLB Advance Total
|
||||||||||
Contract Rate
|
2010
|
2009
|
||||||||
(In Thousands)
|
||||||||||
0.00% - 1.99% | $ | 9,783 | $ | - | ||||||
2.00% - 2.99% | 13,545 | 1,684 | ||||||||
3.00% - 3.99% | 6,570 | 16,750 | ||||||||
4.00% - 4.99% | 5,500 | 17,750 | ||||||||
5.00% - 5.99% | - | 4,328 | ||||||||
$ | 35,398 | $ | 40,512 | |||||||
Year Ending
December 31,
|
Amount
Maturing
|
|||
( In Thousands)
|
||||
2011
|
$ | 1,250 | ||
2012
|
15,283 | |||
2013
|
10,250 | |||
2014
|
6,295 | |||
2015
|
2,320 | |||
$ | 35,398 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
Years Ended December 31,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
Current Tax Expense
|
$ | 930 | $ | 541 | ||||
Deferred Tax Benefit
|
(923 | ) | (51 | ) | ||||
$ | 7 | $ | 490 | |||||
2010 | 2009 | |||||||
(In Thousands)
|
||||||||
Expected Tax Provision at a 34% Rate
|
$ | 141 | $ | 468 | ||||
Effect of tax-exempt income
|
(100 | ) | (20 | ) | ||||
Nondeductible expenses
|
13 | 5 | ||||||
Realized capital gain
|
(18 | ) | ||||||
Other
|
(29 | ) | 37 | |||||
$ | 7 | $ | 490 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
December 31,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
Deferred Tax Assets | ||||||||
Recognition and Retention Plan
|
$ | 7 | $ | 5 | ||||
Credits Carryforward
|
- | 148 | ||||||
Recognition of Other-than-Temporary Decline in
|
||||||||
Market Value of Available-for-Sale Securities
|
- | 266 | ||||||
Market Value Adjustment to Available-for-Sale Securities
|
- | 121 | ||||||
Capital Loss Carryforward
|
538 | 502 | ||||||
Allowance for Loan Losses
|
1,313 | 366 | ||||||
Total Deferred Tax Assets
|
1,858 | 1,408 | ||||||
Deferred Tax Liabilities | ||||||||
Premises and Equipment
|
(166 | ) | (291 | ) | ||||
FHLB Stock Dividends
|
(122 | ) | (277 | ) | ||||
Mortgage Servicing Rights
|
(309 | ) | (274 | ) | ||||
Other
|
(157 | ) | (172 | ) | ||||
Total Deferred Tax Liabilities
|
(754 | ) | (1,014 | ) | ||||
Valuation Allowance
|
(538 | ) | (768 | ) | ||||
Net Deferred Tax Asset (Liability)
|
$ | 566 | $ | (374 | ) |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
Awarded Shares
|
||||||||
2010
|
2009
|
|||||||
Balance, Beginning of Year
|
6,422 | 7,334 | ||||||
Purchased by Plan
|
- | - | ||||||
Granted
|
- | - | ||||||
Forfeited/Expired
|
- | - | ||||||
Earned and Issued
|
(913 | ) | (912 | ) | ||||
Balance, End of Year
|
5,509 | 6,422 | ||||||
Years Ended December 31,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
Unrealized Holding (Losses) Gains
|
||||||||
Arising During the Period
|
$ | (1,395 | ) | $ | 691 | |||
Tax (Benefit) Expense
|
(474 | ) | 235 | |||||
(921 | ) | 456 | ||||||
Reclassification Adjustments for Gains
|
||||||||
Included in Net Income
|
1,010 | 4 | ||||||
Tax Expense
|
343 | 1 | ||||||
667 | 3 | |||||||
Net Unrealized Holding (Losses) Gains
|
||||||||
Arising During the Period
|
$ | (254 | ) | $ | 459 | |||
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
|
REGULATORY MATTERS
|
|
Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of the following as defined in the regulations: total risk-based capital and Tier I capital to risk-weighted assets, Tier I capital to adjusted total assets, and tangible capital to adjusted total assets. As of December 31, 2010, the Company met all of the capital requirements to which it is subject and is, therefore, deemed to be well capitalized.
|
Actual
|
Minimum |
Well Capitalized
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount |
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
December 31, 2010
|
||||||||||||||||||||||||
Tangible Capital
|
$ | 27,018 | 10.31 | % | $ | 3,931 | 1.50 | % | N/A | N/A | ||||||||||||||
Tier 1 Capital
|
27,018 | 10.31 | % | 7,863 | 3.00 | % | $ | 13,104 | 5.00 | % | ||||||||||||||
Tier 1 Risk-Based Capital
|
27,018 | 16.34 | % | 6,613 | 4.00 | % | 9,919 | 6.00 | % | |||||||||||||||
Total Risk-Based Capital
|
28,858 | 17.46 | % | 13,225 | 8.00 | % | 16,531 | 10.00 | % | |||||||||||||||
December 31, 2009
|
||||||||||||||||||||||||
Tangible Capital
|
$ | 26,510 | 9.79 | % | $ | 4,064 | 1.50 | % | N/A | N/A | ||||||||||||||
Tier 1 Capital
|
26,510 | 9.79 | % | 8,128 | 3.00 | % | $ | 13,546 | 5.00 | % | ||||||||||||||
Tier 1 Risk-Based Capital
|
26,510 | 16.13 | % | 6,575 | 4.00 | % | 9,862 | 6.00 | % | |||||||||||||||
Total Risk-Based Capital
|
28,123 | 17.11 | % | 13,150 | 8.00 | % | 16,437 | 10.00 | % | |||||||||||||||
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
December 31, 2010
|
December 31, 2009
|
|||||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||||||||||
Available for Sale Securities:
1
|
||||||||||||||||||||||||
Mortgage Backed Securities
|
$ | - | $ | 26,795 | $ | - | $ | - | $ | 32,678 | $ | - | ||||||||||||
Collateralized Mortgage
|
||||||||||||||||||||||||
Obligations
|
- | 8,232 | - | - | 1,433 | - | ||||||||||||||||||
U.S. Government and
|
||||||||||||||||||||||||
Agency Securities
|
- | 2,914 | - | - | 6,937 | - | ||||||||||||||||||
Mutual Funds
|
- | - | - | - | 2,394 | - | ||||||||||||||||||
Municipal Securities
|
- | 10,367 | - | - | 7,013 | - | ||||||||||||||||||
Loans
2
|
- | 12,873 | - | - | 5,633 | - | ||||||||||||||||||
Other Real Estate
3
|
- | 1,358 | - | - | 2,489 | - | ||||||||||||||||||
1
Securities are measured at fair value on a recurring basis, generally monthly.
|
||||||||||||||||||||||||
2
Includes impaired loans that have been measured for impairment at the fair value of the loan's collateral.
|
||||||||||||||||||||||||
3
Other real estate is transferred from loans to REO at the lower of cost or market.
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
|
NOTE Q
|
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
December 31, 2010
|
December 31, 2009
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Value
|
Value
|
Value
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Financial Assets:
|
||||||||||||||||
Cash and Cash Equivalents
|
$ | 10,254 | $ | 10,254 | $ | 19,735 | $ | 19,735 | ||||||||
Securities Available-for-Sale
|
48,308 | 48,308 | 50,455 | 50,455 | ||||||||||||
Loans, Net
|
189,229 | 200,722 | 185,500 | 194,118 | ||||||||||||
FHLB Stock
|
1,702 | 1,702 | 2,354 | 2,354 | ||||||||||||
Accrued Interest Receivable
|
1,498 | 1,498 | 1,518 | 1,518 | ||||||||||||
Financial Liabilities:
|
||||||||||||||||
Deposits
|
$ | 198,756 | $ | 201,188 | $ | 201,493 | $ | 203,972 | ||||||||
Borrowings
|
35,398 | 36,384 | 40,512 | 42,039 | ||||||||||||
Accrued Interest Payable
|
83 | 83 | 140 | 140 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
(Dollars in Thousands, Except Per Share Data)
|
||||||||||||||||
2010
|
||||||||||||||||
Interest and Dividend Income
|
$ | 3,443 | $ | 3,530 | $ | 3,415 | $ | 3,332 | ||||||||
Interest Expense
|
1,251 | 1,166 | 1,038 | 1,004 | ||||||||||||
Net Interest Income
|
2,192 | 2,364 | 2,377 | 2,328 | ||||||||||||
Provision for Loan Losses
|
500 | 650 | 1,150 | 500 | ||||||||||||
Other Income
|
213 | 427 | 254 | 1,116 | ||||||||||||
Other Expense
|
2,020 | 1,963 | 2,085 | 1,989 | ||||||||||||
Income Tax (Benefit) Expense
|
(63 | ) | 40 | (226 | ) | 256 | ||||||||||
Net (Loss) Income
|
$ | (52 | ) | $ | 138 | $ | (378 | ) | $ | 699 | ||||||
Net (Loss) Income per Common Share
|
||||||||||||||||
Basic
|
$ | (0.04 | ) | $ | 0.11 | $ | (0.30 | ) | $ | 0.56 | ||||||
Diluted
|
$ | (0.04 | ) | $ | 0.11 | $ | (0.30 | ) | $ | 0.56 | ||||||
Dividends Per Share
|
$ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | ||||||||
2009
|
||||||||||||||||
Interest and Dividend Income
|
$ | 3,388 | $ | 3,610 | $ | 3,600 | $ | 3,561 | ||||||||
Interest Expense
|
1,513 | 1,663 | 1,548 | 1,360 | ||||||||||||
Net Interest Income
|
1,875 | 1,947 | 2,052 | 2,201 | ||||||||||||
Provision for Loan Losses
|
- | - | 200 | 300 | ||||||||||||
Other Income
|
373 | 481 | 245 | 231 | ||||||||||||
Other Expense
|
1,676 | 1,773 | 1,928 | 2,152 | ||||||||||||
Income Tax Expense
|
194 | 152 | 65 | 79 | ||||||||||||
Net Income (Loss)
|
$ | 378 | $ | 503 | $ | 104 | $ | (99 | ) | |||||||
Net Income (Loss) per Common Share
|
||||||||||||||||
Basic
|
$ | 0.30 | $ | 0.40 | $ | 0.08 | $ | (0.08 | ) | |||||||
Diluted
|
$ | 0.30 | $ | 0.40 | $ | 0.08 | $ | (0.08 | ) | |||||||
Dividends Per Share
|
$ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
Years Ended December 31,
|
||||||||
2010
|
2009
|
|||||||
(Dollars in Thousands,
|
||||||||
Except Per Share Data)
|
||||||||
Numerator:
|
||||||||
Net Income
|
$ | 407 | $ | 886 | ||||
Effect of Dilutive Securities
|
- | - | ||||||
Numerator for Diluted Earnings Per Share
|
$ | 407 | $ | 886 | ||||
Denominator
|
||||||||
Average Shares Outstanding
|
1,252,248 | 1,263,021 | ||||||
Effect of Potentially Dilutive Securities and Contingently Issuable Shares
|
- | - | ||||||
Denominator for Diluted Earnings Per Share
|
1,252,248 | 1,263,021 | ||||||
Earnings Per Share
|
||||||||
Basic
|
$ | 0.33 | $ | 0.70 | ||||
Diluted
|
$ | 0.33 | $ | 0.70 | ||||
Cash Dividends Per Share
|
$ | 0.40 | $ | 0.40 |
December 31,
|
||||||||
2010
|
2009
|
|||||||
Average Common Shares Issued
|
3,438,500 | 3,438,500 | ||||||
Average Treasury Shares
|
(2,180,562 | ) | (2,168,882 | ) | ||||
Average Unearned ESOP Shares
|
- | - | ||||||
Average Unearned RRP Trust Shares
|
(5,510 | ) | (6,597 | ) | ||||
1,252,428 | 1,263,021 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
CONDENSED BALANCE SHEETS
|
||||||||
December 31,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
ASSETS
|
||||||||
Cash and Cash Equivalents
|
$ | 398 | $ | 665 | ||||
Securities Available-for-Sale, at Fair Value
|
25 | 30 | ||||||
Investment in Subsidiary
|
27,000 | 26,745 | ||||||
Other Assets
|
461 | 831 | ||||||
Total Assets
|
$ | 27,884 | $ | 28,271 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Other Liabilities
|
$ | 16 | $ | 72 | ||||
Stockholders’ Equity
|
27,868 | 28,199 | ||||||
Total Liabilities and Stockholders' Equity
|
$ | 27,884 | $ | 28,271 | ||||
CONDENSED STATEMENTS OF INCOME
|
||||||||
Years Ended December 31,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
Income:
|
||||||||
Interest Income
|
$ | 2 | $ | 3 | ||||
Other Income
|
157 | 237 | ||||||
Total Income
|
159 | 240 | ||||||
Operating Expenses
|
279 | 382 | ||||||
Loss Before Income Taxes and Equity in
|
||||||||
Undistributed Earnings of Guaranty Savings Bank
|
(120 | ) | (142 | ) | ||||
Applicable Income Tax Benefit
|
(37 | ) | (146 | ) | ||||
Equity in Undistributed Earnings of
|
||||||||
Guaranty Savings Bank
|
490 | 882 | ||||||
Net Income
|
$ | 407 | $ | 886 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
Years Ended December 31,
|
||||||||
2010
|
2009
|
|||||||
(In Thousands)
|
||||||||
OPERATING ACTIVITIES
|
||||||||
Net Income
|
$ | 407 | $ | 886 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided by
|
||||||||
(Used in) Operating Activities
|
||||||||
Depreciation Expense
|
9 | 10 | ||||||
Gain on Sale of Premises and Equipment
|
- | (134 | ) | |||||
Equity in Undistributed Earnings of Subsidiary
|
(490 | ) | (882 | ) | ||||
Deferred Income Tax Benefit
|
(3 | ) | (42 | ) | ||||
Decrease (Increase) in Other Assets
|
363 | (225 | ) | |||||
Decrease in Other Liabilities
|
(56 | ) | - | |||||
Net Cash Provided by (Used in) Operating Activities
|
230 | (387 | ) | |||||
INVESTING ACTIVITIES
|
||||||||
Proceeds from Sale of Premises and Equipment
|
- | 191 | ||||||
Proceeds from Maturites of Investment Securities
|
5 | 22 | ||||||
Net Cash Provided by Investing Activities
|
5 | 213 | ||||||
FINANCING ACTIVITIES
|
||||||||
Purchases of Treasury Stock
|
- | (387 | ) | |||||
Payment of Dividends
|
(502 | ) | (510 | ) | ||||
Net Cash Used in Financing Activities
|
(502 | ) | (897 | ) | ||||
DECREASE IN CASH AND CASH EQUIVALENTS
|
(267 | ) | (1,071 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
665 | 1,736 | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR
|
$ | 398 | $ | 665 |
GS Financial Corp. and Subsidiary |
Notes to Consolidated Financial Statements (Continued)
|
Board of Directors |
Albert J. Zahn, Jr.
Mr. Zahn (age 59) has served as Chairman of the Board of GS Financial and Guaranty Savings Bank since April 2005. Mr. Zahn is a certified public accountant and President of the firm Al Zahn CPA, a Professional Accounting Corporation in Mandeville, Louisiana. He has been a director since 1992.
Edward J. Bourgeois
Mr. Bourgeois (age 54) is a certified public accountant in the State of Louisiana and currently serves as President and Chief Executive Officer of Centergy Consulting, LLC, New Orleans, Louisiana, a consulting firm specializing in the banking and financial industry. Mr. Bourgeois also serves as the President and Chief Executive Officer of My EZ Car Care LLC, an automotive services limited liability company. Mr. Bourgeois was formerly the Executive Vice President/Chief Operating Officer of Crescent Bank and Trust, New Orleans, Louisiana from 2001 to 2004. He is a member of the American Institute of Certified Public Accountants and Louisiana Society of Certified Public Accountants. He has been a director since 2004.
Stephen L.
Cory
Mr. Cory (age 61) is an insurance agent and President of Cory, Tucker & Larrowe, Inc. in Metairie, Louisiana. He has been a director since 1995.
Bradford A. Glazer
Mr. Glazer (age 55) is President of Glazer Enterprises, Inc., a freight agency representing Park Transport, Inc., as well as other carriers as the need arises. Mr. Glazer also serves as President of Park Transport, a logistics services provider. Glazer Enterprises, located in Cincinnati, Ohio, is also a real estate management and development company. He has been a director since 1991.
Bruce A. Scott
Mr. Scott (age 58) Scott is an attorney and has served as Executive Vice President of GS Financial since its formation in February 1997 and Executive Vice President of Guaranty Savings Bank since 1985.
Mr. Scott served as Vice Chairman of the Board from 1990 to 2010. Mr. Scott also serves as legal counsel of Guaranty Savings Bank. He has been a director since 1982.
Paul D. Cordes, Jr.
Mr. Cordes (age 57) is a member of the law firm of Guarisco & Cordes, LLC, New Orleans, Louisiana, specializing primarily in tax and related business and estate planning matters. From 2002 to 2003, Mr. Cordes operated a solo law practice and prior thereto, served as a tax consulting partner with Ernst & Young LLP. He has been a director since 2010.
|
Hayden W. Wren III
Mr. Wren (age 62) has served as Vice Chairman of Guaranty Savings Bank and GS Financial since 2010. Mr. Wren is the Director of Commercial/Investment Brokerage of Corporate Realty, Inc., New Orleans, Louisiana. Mr. Wren is a Certified Commercial Investment Member (CCIM), a member of the Society of Industrial and Office Realtors (SIOR), and a licensed certified public accountant having membership affiliations with the American Institute of Certified Public Accountants and the Louisiana Society of Certified Public Accountants. He has been a director since 2003.
Executive Officers Who Are Not Directors
Stephen E. Wessel
Mr. Wessel (age 48) has served as President and Chief Executive Officer of GS Financial and Guaranty Savings Bank since December 2005. Since December 2007, he has served as a Director of Guaranty Savings Bank. Previously, he served as Senior Vice President/South Louisiana Business Banking Manager for AmSouth Bank, (now, Regions Bank), a regional commercial bank, New Orleans, Louisiana since August 2001. Prior thereto, he held various lending and management positions at Whitney National Bank.
Kevin J. Dobson
Mr. Dobson (age 37) has served as Senior Vice President - Commercial Lending Manager of Guaranty Savings Bank since January 2006.
Lettie R. Moll
Ms. Moll (age 57) has served as Vice President and Corporate Secretary of GS Financial since its formation in 1997 and Senior Vice President and Corporate Secretary of Guaranty Savings Bank since July 2009 and March 1982, respectively. Prior to July 2009, Ms. Moll served as Vice President and Corporate Secretary of Guaranty Savings. Ms. Moll currently also serves as Guaranty Savings Bank's Deposit Operations Manager and BSA/AML Compliance Officer.
Stephen F. Theriot
Mr. Theriot (age 37) has served as Senior Vice President and Chief Financial Officer of GS Financial and Guaranty Savings Bank since December 2008. Prior thereto, Mr. Theriot served as the Vice President and Chief Operating Officer of Guaranty Savings Bank since February 2007 and assumed the additional duties of principal financial officer of GS Financial and Guaranty Savings Bank in September 2008. Mr. Theriot previously served as Controller of Mutual Savings and Loan Association, in Metairie, Louisiana. Prior thereto, Mr. Theriot served as a Senior Auditor in the Audit and Assurance Business Services Department of Ernst & Young LLP.
|
Banking Locations |
Main Office
3798 Veterans Memorial Blvd.
Metairie, LA 70002
(504) 457-6220
West Bank Branch
1800 Manhattan Blvd.
Harvey, LA 70058
(504) 361-3391
Mid City Branch
3915 Canal Street
New Orleans, LA 70119
(504) 483-7146
|
Elmwood Branch
5700 Citrus Boulevard
Suite K
Harahan, LA 70123
(504) 733-8176
Mandeville Branch
2111 N. Causeway Blvd
Mandeville, LA 70471
(985) 626-6229
Mortgage Production Office
1700 Veterans Memorial Blvd.
Metairie, LA 70002
(504) 828-4327
|
1 Year GS Financial Corp. (MM) Chart |
1 Month GS Financial Corp. (MM) Chart |
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