GS Financial Corp. Announces First Quarter Results and Declares Dividend

  
    
  
  
    
      GS Financial Corp. (NASDAQ: GSLA), the holding company of Guaranty 
      Savings Bank (www.guarantysb.com), 
      reported earnings for the quarter ended March 31, 2007 of $96,000, or 
      $.08 per share, compared with $276,000, or $.23 per share for the same 
      period in 2006.
    
    
      President Stephen E. Wessel noted “We continue 
      to build the foundation for our long-term growth strategy by increasing 
      our product offerings, technological capabilities and branch locations 
      as well as adding talented banking professionals. These investments in 
      our future have temporarily slowed earnings, but I am very excited about 
      our opportunities to attract and service more customers enabling us to 
      experience profitable growth in the near future.”
    
    
      Net interest income for the quarter ended March 31, 2007 was $1.4 
      million compared to $1.5 million for the same period in 2006. The Company’s 
      net interest margin decreased slightly to 3.48% for the first quarter of 
      2007 from 3.49% for the same period in 2006. The decrease was the result 
      of increasing deposit costs, prevalent throughout the banking industry, 
      partially offset by a reduction in higher cost borrowings from the FHLB.
    
    
      Interest expense for the three months ended March 31, 2007 was $1.3 
      million, an increase of 9.5% over interest expense for the three months 
      ended March 31, 2006. Non-interest expenses for the first quarter of 
      2007 were $1.3 million, up approximately $144,000 from the first quarter 
      of 2006 total of $1.1 million.
    
    
      Loan quality continued to be sound during the first quarter of 2007. The 
      Company experienced a decrease in non-performing loans from $2.2 million 
      at March 31, 2006 to $334,000 at March 31, 2007. In addition, total 
      non-performing assets at March 31, 2007 increased to $282,000 compared 
      to $179,000 at December 31, 2006. Some credit quality concerns persist 
      in our market as the area continues to recover from Hurricane Katrina. 
      The ultimate ability of the area to economically recover is a major 
      factor influencing the performance of the Bank’s 
      loan portfolio.
    
    
      Total Assets at March 31, 2007 were $168.6 million compared to $168.4 
      million at December 31, 2006, an increase of approximately $235,000, or 
      0.1%. Net loans increased $3.5 million, or 3.7% in the first quarter of 
      2007. At March 31, 2007 net loans were $97.5 million compared to $94.0 
      million at year-end 2006. Deposit accounts increased approximately $1.9 
      million, or 1.5% during the first quarter, totaling $124.7 million at 
      March 31, 2007 compared to $122.8 million at December 31, 2006. 
      Borrowings from the Federal Home Loan Bank were reduced from $17.0 
      million at December 31, 2006 to $15.7 million at March 31, 2007. 
      Stockholders’ equity was 16.1% of total assets 
      at both March 31, 2007 and December 31, 2006.
    
    
      During February, 2007 the Bank converted its former loan production 
      office in Ponchatoula, Louisiana, to a full-service branch office. 
      During March, 2007 the Company purchased a vacant site in Harvey, 
      Louisiana for future branch expansion.
    
    
      Albert J. Zahn, Jr., Chairman of the Board of Directors of GS Financial 
      Corp. announced that the Board of Directors, at its meeting on April 24, 
      2007, declared a quarterly cash dividend of $.10 per share. The dividend 
      is payable to shareholders of record as of May 8, 2007 and is payable on 
      May 23, 2007.
    
    
      Chairman Zahn further announced that Directors Donald C. Scott and 
      Hayden W. Wren, III were re-elected at the Annual Meeting of 
      Shareholders held on April 24, 2007, to a three-year term expiring in 
      2010.
    
    
      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.
        
      
      
        
          Consolidated Statements of Financial Condition
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
          ($ in thousands)
        
        
           
        
        
          March 31, 2007

          
            (Unaudited)
          
        
        
           
        
        
          December 31, 2006

          
            (Audited)
          
        
      
      
        
          ASSETS
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and Amounts due from Depository Institutions
        
        
        
        
          $
        
        
          1,705 
        
        
        
        
          $
        
        
          1,893 
        
      
      
        
          Interest-Bearing Deposits in Other Banks
        
        
        
        
        
        
          6,868 
        
        
        
        
        
        
          6,544 
        
      
      
        
          Federal Funds Sold
        
        
        
        
        
        
          3,855 
        
        
        
        
        
        
          2,680 
        
      
      
        
          Securities Available-for-Sale, at Fair Value
        
        
        
        
        
        
          50,043 
        
        
        
        
        
        
          55,090 
        
      
      
        
          Loans, Net
        
        
        
        
        
        
          97,490 
        
        
        
        
        
        
          93,987 
        
      
      
        
          Accrued Interest Receivable
        
        
        
        
        
        
          1,771 
        
        
        
        
        
        
          2,004 
        
      
      
        
          Premises & Equipment, Net
        
        
        
        
        
        
          4,189 
        
        
        
        
        
        
          3,578 
        
      
      
        
          Stock in Federal Home Loan Bank, at Cost
        
        
        
        
        
        
          996 
        
        
        
        
        
        
          982 
        
      
      
        
          Real Estate Held-for-Investment, Net
        
        
        
        
        
        
          460 
        
        
        
        
        
        
          464 
        
      
      
        
          Other Assets
        
        
           
        
        
           
        
        
          1,238 
        
        
           
        
        
           
        
        
          1,158 
        
      
      
        
          Total Assets
        
        
           
        
        
          $
        
        
          168,615 
        
        
           
        
        
          $
        
        
          168,380 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          LIABILITIES
        
        
        
        
        
        
        
        
        
      
      
        
          Interest-Bearing Deposits
        
        
        
        
          $
        
        
          121,101 
        
        
        
        
          $
        
        
          119,364 
        
      
      
        
          Noninterest-Bearing Deposits
        
        
        
        
        
        
          3,625 
        
        
        
        
        
        
          3,390 
        
      
      
        
          FHLB Advances
        
        
        
        
        
        
          15,689 
        
        
        
        
        
        
          17,042 
        
      
      
        
          Other Liabilities
        
        
           
        
        
           
        
        
          990 
        
        
           
        
        
           
        
        
          1,420 
        
      
      
        
          Total Liabilities
        
        
           
        
        
           
        
        
          141,405 
        
        
           
        
        
           
        
        
          141,216 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          STOCKHOLDERS' EQUITY
        
        
        
        
        
        
        
        
        
      
      
        
          Common Stock
        
        
        
        
          $
        
        
          34 
        
        
        
        
          $
        
        
          34 
        
      
      
        
          Additional Paid-in Capital
        
        
        
        
        
        
          34,751 
        
        
        
        
        
        
          34,701 
        
      
      
        
          Unearned RRP Trust Stock
        
        
        
        
        
        
          (573)
        
        
        
        
        
        
          (523)
        
      
      
        
          Treasury Stock
        
        
        
        
        
        
          (32,493)
        
        
        
        
        
        
          (32,493)
        
      
      
        
          Retained Earnings
        
        
        
        
        
        
          25,734 
        
        
        
        
        
        
          25,764 
        
      
      
        
          Accumulated Other Comprehensive Loss
        
        
           
        
        
           
        
        
          (243)
        
        
           
        
        
           
        
        
          (319)
        
      
      
        
          Total Stockholders' Equity
        
        
           
        
        
           
        
        
          27,210 
        
        
           
        
        
           
        
        
          27,164 
        
      
      
        
          Total Liabilities & Stockholders' Equity
        
        
           
        
        
          $
        
        
          168,615 
        
        
           
        
        
          $
        
        
          168,380 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Selected Asset Quality Data
        
        
        
        
        
        
        
        
        
      
      
        
          Total Non Performing Assets
        
        
        
        
          $
        
        
          282 
        
        
        
        
          $
        
        
          179 
        
      
      
        
          Non Performing Assets to Total Assets
        
        
        
        
        
        
          0.17%
        
        
        
        
        
        
          0.11%
        
      
    
    
      
        
          GS Financial Corp.
        
      
      
        
          Condensed Consolidated Statements of Income
        
      
      
        
          (Unaudited)
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
           
        
        
           
        
        
          For the Three Months Ended March 31,
        
      
      
        
          ($ in thousands, except per share data)
        
        
           
        
        
          2007 
        
        
           
        
        
          2006 
        
      
      
        
          Interest and Dividend Income
        
        
        
        
          $
        
        
          2,654 
        
        
        
        
          $
        
        
          2,712 
        
      
      
        
          Interest Expense
        
        
           
        
        
           
        
        
          1,284 
        
        
           
        
        
           
        
        
          1,173 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net Interest Income
        
        
        
        
        
        
          1,370 
        
        
        
        
        
        
          1,539 
        
      
      
        
          Provision for Loan Losses
        
        
           
        
        
           
        
        
          - 
        
        
           
        
        
           
        
        
          - 
        
      
      
        
          Net Interest Income after Provision for Loan Losses
        
        
           
        
        
           
        
        
          1,370 
        
        
           
        
        
           
        
        
          1,539 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest Expense
        
        
           
        
        
           
        
        
          1,276 
        
        
           
        
        
           
        
        
          1,132 
        
      
      
        
          Net Income Before Non-Interest Income and Income Taxes
        
        
           
        
        
           
        
        
          94 
        
        
           
        
        
           
        
        
          407 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest Income
        
        
           
        
        
           
        
        
          29 
        
        
           
        
        
           
        
        
          7 
        
      
      
        
          Income Before Income Tax Expense
        
        
           
        
        
           
        
        
          123 
        
        
           
        
        
           
        
        
          414 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income Tax Expense
        
        
           
        
        
           
        
        
          27 
        
        
           
        
        
           
        
        
          138 
        
      
      
        
          Net Income
        
        
           
        
        
           
        
        
          96 
        
        
           
        
        
           
        
        
          276 
        
      
      
        
          Earnings Per Share – Basic
        
        
           
        
        
          $
        
        
          0.08 
        
        
           
        
        
          $
        
        
          0.23 
        
      
      
        
          Earnings Per Share –Diluted
        
        
           
        
        
          $
        
        
          0.08 
        
        
           
        
        
          $
        
        
          0.23 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Selected Operating Data
        
        
        
        
        
        
        
        
        
      
      
        
          Weighted Average Shares Outstanding
        
        
        
        
        
        
          1,234,453 
        
        
        
        
        
        
          1,215,567 
        
      
      
        
          
            Return on Average Assets1
          
        
        
        
        
        
        
          0.23%
        
        
        
        
        
        
          0.63%
        
      
      
        
          
            Non-Interest Expense/Average Assets1
          
        
        
        
        
        
        
          3.10%
        
        
        
        
        
        
          2.57%
        
      
      
        
          Net Interest Margin1
        
        
           
        
        
           
        
        
          3.48%
        
        
           
        
        
           
        
        
          3.49%
        
      
      
        
          1 Annualized