GS Financial Corp. (MM) (NASDAQ:GSLA)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more GS Financial Corp. (MM) Charts. Click Here for more GS Financial Corp. (MM) Charts.](/p.php?pid=staticchart&s=N%5EGSLA&p=8&t=15)
GS Financial Corp. (NASDAQ: GSLA), the holding company of Guaranty
Savings Bank (www.guarantysb.com),
reported earnings for the quarter ended March 31, 2008 of $126,000, or
$.10 per share, compared with $96,000, or $.08 per share, for the same
period in 2007, an increase of 31.3%.
President Stephen E. Wessel noted “The first
quarter of 2008 was a challenging time for the banking industry given
the rapid decline in interest rates combined with the major economic
slowdown. In spite of these challenges, our performance continues to
improve, with loans growing to a record level and earnings exceeding
those of the same period last year. We are beginning to reap the
benefits of our investments in physical locations, people, and
technology and are expecting continued improvement in the upcoming
periods. The New Orleans metropolitan area economy and unemployment
numbers continue to demonstrate positive trends.”
Net interest income for the quarter ended March 31, 2008 was $1.5
million, an increase of 8.9% from $1.4 million for the same period in
2007. The Company’s net interest margin
decreased slightly to 3.23% for the first quarter of 2008 from 3.48% for
the same period in 2007. The decrease was the result of higher deposit
costs relating to increases in interest rates generally during 2007, the
sharp decline in short-term interest rates in the first quarter of 2008,
and a reversal of approximately $40,000 in interest income from a
commercial loan being placed on non-accrual status.
Interest and dividend income for the three months ended March 31, 2008
was $3.0 million, an increase of $333,000, or 12.5% from $2.7 million
for the three months ended March 31, 2007. The increase was due to the
increase in average balance of interest-earning assets for the first
quarter of 2008 compared to the same period in 2007.
Non-interest income increased from $29,000 in the first quarter of 2007
to $115,000 for the same period in 2008, primarily due to increases in
gains on sales of residential loans in the secondary market as the Bank
continues to grow its mortgage banking operations.
Interest expense for the three months ended March 31, 2008 was $1.5
million, an increase of 16.4% over interest expense for the three months
ended March 31, 2007. Non-interest expense for the first quarter of 2008
was $1.4 million, up approximately $140,000 from the first quarter of
2007 total non-interest expense of $1.3 million.
Non-performing assets increased during the first quarter of 2008 from
$1.4 million at December 31, 2007 to $3.2 million at March 31, 2008.
With the exception of one loan of $20,000, all of the non-performing
assets were real estate-secured loans originated prior to Hurricane
Katrina. The largest component of the increase from December 31, 2007 to
March 31, 2008 was a loan of $1.3 million secured by a mixed-use
property in Orleans Parish. Management believes its allowance for loan
losses is adequate to provide for any potential loan losses inherent in
the loan portfolio.
Total Assets at March 31, 2008 were $200.5 million compared to $186.5
million at December 31, 2007, an increase of approximately $14.0
million, or 7.0%. Net loans increased $11.3 million, or 9.6% in the
first quarter of 2008. At March 31, 2008 net loans were $129.8 million
compared to $118.5 million at year-end 2007. Deposit accounts increased
approximately $3.8 million, or 2.9% during the first quarter, totaling
$133.3 million at March 31, 2008 compared to $129.5 million at December
31, 2007. Borrowings from the Federal Home Loan Bank increased from
$27.0 million at December 31, 2007 to $37.5 million at March 31, 2008.
Stockholders’ equity was 14.0% of total assets
at March 31, 2008, down from 15.1% at December 31, 2007.
Highlights of the first quarter of 2008 include:
Gross loans increased by $11.3 million (9.3%) during the first quarter
of 2008 to $133.2 million at March 31, 2008, with the majority of the
growth in real-estate secured loans, both residential and
non-residential.
Deposits increased in the first quarter of 2008 by $3.8 million (2.9%)
to $133.3 million at March 31, 2008, including $2.5 million of growth
in non-interest bearing deposits.
Interest and dividend income increased by $333,000 (12.5%) to $3.0
million for the three months ended March 31, 2008 compared to the
prior year period.
Non-interest expense for the first quarter of 2008 totaled $1.4
million, up 10.9% from the same period in the prior year. However, as
the Company has grown during that period, non-interest expense as a
percentage of average assets fell from 3.10% in the first quarter of
2007 to 2.91% in the first quarter of 2008.
Non-interest income for the first quarter of 2008 totaled $115,000, up
from $29,000 in the first quarter of 2007, due primarily to gains
recognized on sales of mortgage loans in the secondary market. During
the first quarter of 2008 the Bank sold $6.6 million of loans
resulting in gains of $95,000, which were the most gains the Bank has
recognized in a single quarter.
Management has performed a thorough examination of its loan portfolio
as well as the mortgage backed securities and collateralized mortgage
obligations in its investment portfolio and has not identified any
exposure to Subprime or Alt-A loans.
FORWARD-LOOKING INFORMATION
Statements contained in this news release which are not historical
facts may be forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties which could cause
actual results to differ materially from those currently anticipated due
to a number of factors. Factors which could result in material
variations include, but are not limited to, changes in interest rates
which could affect net interest margins and net interest income,
competitive factors which could affect net interest income and
noninterest income, changes in demand for loans, deposits and other
financial services in the Company's market area; changes in asset
quality, general economic conditions as well as other factors discussed
in documents filed by the Company with the Securities and Exchange
Commission from time to time. In addition to risks and uncertainties
described by the Company in prior filings with the SEC, other risks and
uncertainties potentially impacting the Company are those related to the
Company in its primary market area impacted by Hurricane Katrina,
including the continuing effect of the storm and its aftermath on the
Company's operating expenses and on the Company's borrowers and other
customers. The Company undertakes no obligation to update these
forward-looking statements to reflect events or circumstances that occur
after the date on which such statements were made.
GS Financial Corp.
Consolidated Statements of Financial Condition
($ in thousands)
March 31, 2008
(Unaudited)
December 31, 2007
(Audited)
ASSETS
Cash and Amounts due from Depository Institutions
$
2,751
$
2,485
Interest-Bearing Deposits in Other Banks
7,076
6,008
Federal Funds Sold
1,658
969
Securities Available-for-Sale, at Fair Value
47,964
47,747
Loans, Net
129,815
118,477
Accrued Interest Receivable
1,716
1,828
Premises & Equipment, Net
5,863
5,874
Stock in Federal Home Loan Bank, at Cost
1,651
1,220
Foreclosed Assets
85
-
Real Estate Held-for-Investment, Net
446
450
Other Assets
1,496
1,429
Total Assets
$
200,521
$
186,487
LIABILITIES
Interest-Bearing Deposits
$
125,168
$
123,825
Noninterest-Bearing Deposits
8,162
5,685
FHLB Advances
37,537
26,986
Other Liabilities
1,535
1,827
Total Liabilities
172,402
158,323
STOCKHOLDERS' EQUITY
Common Stock
$
34
$
34
Additional Paid-in Capital
34,546
34,546
Unearned RRP Trust Stock
(158)
(158)
Treasury Stock
(32,062)
(32,062)
Retained Earnings
25,917
25,919
Accumulated Other Comprehensive Loss
(158)
(115)
Total Stockholders' Equity
28,119
28,164
Total Liabilities & Stockholders' Equity
$
200,521
$
186,487
Selected Asset Quality Data
Total Non Performing Assets
$
3,247
$
1,438
Non Performing Assets to Total Assets
1.62%
0.77%
GS Financial Corp.
Condensed Consolidated Statements of Income
(Unaudited)
For the Three Months Ended
March 31,
($ in thousands, except per share data)
2008
2007
Interest and Dividend Income
$
2,987
$
2,654
Interest Expense
1,496
1,284
Net Interest Income
1,491
1,370
Provision for Loan Losses
-
-
Net Interest Income after Provision for Loan Losses
1,491
1,370
Non-interest Expense
1,416
1,276
Net Income Before Non-Interest Income and Income Taxes
75
94
Non-interest Income
115
29
Income Before Income Tax Expense
190
123
Income Tax Expense
64
27
Net Income
126
96
Earnings Per Share – Basic
$
0.10
$
0.08
Earnings Per Share –Diluted
$
0.08
$
0.08
Selected Operating Data
Weighted Average Shares Outstanding
1,285,800
1,234,453
Return on Average Assets 1
0.26%
0.20%
Non-Interest Expense/Average Assets1
2.91%
3.10%
Net Interest Margin1
3.23%
3.48%
1 Annualized