GS Financial Corp. Announces First Quarter Results
21 April 2006 - 7:31AM
Business Wire
GS Financial Corp. (NASDAQ:GSLA), the holding company of Guaranty
Savings and Homestead Association (www.gsha.com), reported earnings
for the quarter ended March 31, 2006 of $276,000, or $.23 per
share, compared with a loss of $101,000, or ($.09) per share for
the same period in 2005. The 2005 loss included costs associated
with the retirement of the Company's former President and Chief
Executive Officer totaling $428,000, or $.36 per share ($282,000,
or $.24 per share, after related tax benefits). Excluding the
impact of this one-time charge, net earnings from operations for
the quarter ended March 31, 2005 were $182,000, or $.15 per share.
President Stephen E. Wessel noted "Our strong first quarter results
come from growth in our core businesses of residential and
commercial mortgage lending, construction lending and deposits.
With the addition of two seasoned commercial lenders and our
existing core strengths in retail deposit and mortgage delivery, we
are well positioned for continued growth enhanced by rebuilding
efforts in our region." Net interest income for the quarter ended
March 31, 2006 was $1.5 million compared to $1.4 million for the
same period in 2005. The Company's net interest margin also
increased to 3.49% for the first quarter of 2006 from 3.03% for the
same period in 2005. This increase was due primarily to the
beneficial effects in a rising rate environment on our rate
sensitive balance sheet and lower funding costs related primarily
to a reduction in borrowings. Non-interest expenses for the first
quarter of 2006 were $1.1 million, down approximately $375,000 from
the first quarter of 2005 total of $1.5 million. If adjusted for
one-time retirement benefits incurred in 2005, operating expenses
would have increased by $43,000 from 2005 to 2006. Loan quality has
shown improvement subsequent to Hurricane Katrina. During the
months of September, October and November, 2005, payments were
unilaterally deferred by the Association for all borrowers. A $4.8
million provision for loan losses was taken during the fourth
quarter of 2005 to provide reserves for potential losses within the
loan portfolio caused by the impact of Hurricane Katrina. The
Company has experienced a reduction in non-performing loans from
$3.6 million at December 31, 2005 to $2.2 million at March 31,
2006. The majority of the reduction in non-performing loans was the
result of local customers who had not been in a position to make
payments on their loans by December 31, 2005 resuming payments on
their loans during the first quarter. Total Assets at March 31,
2006 were $176.8 million compared to $177.6 million at December 31,
2005, a decrease of approximately $0.8 million, or 0.5%. Net loans
increased $5.1 million, or 7.3% in the first quarter of 2006. At
March 31, 2006 net loans were $74.8 million compared to $69.7
million at year-end 2005. Deposit accounts increased approximately
$6.3 million, or 5.3% during the first quarter, totaling $125.2
million at March 31, 2006 compared to $118.9 million at December
31, 2005. Borrowings from the Federal Home Loan Bank were reduced
from $32.1 million at December 31, 2005 to $25.3 million at March
31, 2006. Stockholders' equity was 14.3% of total assets at both
March 31, 2006 and December 31, 2005. FORWARD-LOOKING INFORMATION
Statements contained in this news release which are not historical
facts may be forward-looking statements as that term is defined in
the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties
which could cause actual results to differ materially from those
currently anticipated due to a number of factors. Factors which
could result in material variations include, but are not limited
to, changes in interest rates which could affect net interest
margins and net interest income, competitive factors which could
affect net interest income and noninterest income, changes in
demand for loans, deposits and other financial services in the
Company's market area; changes in asset quality, general economic
conditions as well as other factors discussed in documents filed by
the Company with the Securities and Exchange Commission from time
to time. In addition to risks and uncertainties described by the
Company in prior filings with the SEC, other risks and
uncertainties potentially impacting the Company are those related
to the Company in its primary market area impacted by Hurricane
Katrina, including the continuing effect of the storm and its
aftermath on the Company's operating expenses and on the Company's
borrowers and other customers. The Company undertakes no obligation
to update these forward-looking statements to reflect events or
circumstances that occur after the date on which such statements
were made. -0- *T GS Financial Corp. Consolidated Statements of
Financial Condition
----------------------------------------------------------------------
March 31, December 31, 2006 2005 ($ in thousands) (Unaudited)
(Audited)
----------------------------------------------------------------------
ASSETS Cash and Amounts due from Depository Institutions $1,322
$3,040 Interest-Bearing Deposits in Other Banks 4,709 4,515 Federal
Funds Sold 9,410 15,000 Securities Available-for-Sale, at Fair
Value 78,466 77,344 Loans, Net 74,802 69,657 Accrued Interest
Receivable 1,562 1,627 Premises & Equipment, Net 2,244 2,257
Stock in Federal Home Loan Bank, at Cost 1,853 1,833 Foreclosed
Assets - - Real Estate Held-for-Investment, Net 474 478 Other
Assets 1,916 1,863
----------------------------------------------------------------------
Total Assets $176,758 $177,614
----------------------------------------------------------------------
LIABILITIES Interest-Bearing Deposits $123,024 $116,798
Noninterest-Bearing Deposits 2,139 2,195 FHLB Advances 25,250
32,106 Other Liabilities 926 1,108
----------------------------------------------------------------------
Total Liabilities 151,339 152,207
----------------------------------------------------------------------
STOCKHOLDERS' EQUITY Common Stock $34 $34 Additional Paid-in
Capital 34,576 34,565 Unearned ESOP Stock (179) (239) Unearned RRP
Trust Stock (698) (698) Treasury Stock (32,265) (32,193) Retained
Earnings 24,412 24,136 Accumulated Other Comprehensive Loss (461)
(198)
----------------------------------------------------------------------
Total Stockholders' Equity 25,419 25,407
----------------------------------------------------------------------
Total Liabilities & Stockholders' Equity $176,758 $177,614
----------------------------------------------------------------------
Selected Asset Quality Data Total Non Performing Assets $2,240
$3,582 Non Performing Assets to Total Assets 1.27% 2.01% Allowance
for Loan Losses to Non Performing Assets 255.04% 159.52%
----------------------------------------------------------------------
GS Financial Corp. Condensed Consolidated Statements of Income
(Unaudited) For the Three Months Ended March 31,
----------------------------------------------------------------------
($ in thousands, except per share data) 2006 2005
----------------------------------------------------------------------
Interest and Dividend Income $2,712 $2,663 Interest Expense 1,173
1,223
----------------------------------------------------------------------
Net Interest Income 1,539 1,440 Provision for Loan Losses - -
----------------------------------------------------------------------
Net Interest Income after Provision for Loan Losses 1,539 1,440
----------------------------------------------------------------------
Non-interest Expense 1,132 1,518
----------------------------------------------------------------------
Net Income (Loss) Before Non-Interest Income and Income Taxes 407
(78)
----------------------------------------------------------------------
Non-interest Income 7 8
----------------------------------------------------------------------
Income (Loss) Before Tax Expense 414 (70)
----------------------------------------------------------------------
Income Tax Expense 138 31
----------------------------------------------------------------------
Net Income (Loss) 276 (101)
----------------------------------------------------------------------
Earnings (Loss) Per Share - Basic $0.23 $(0.09)
----------------------------------------------------------------------
Earnings (Loss) Per Share - Diluted $0.23 $(0.08)
----------------------------------------------------------------------
Selected Operating Data Weighted Average Shares Outstanding
1,215,567 1,182,616 Return on Average Assets(1) 0.63% -0.21%
Non-Interest Expense/Average Assets(1) 2.57% 3.11% Net Interest
Margin(1) 3.49% 3.03%
----------------------------------------------------------------------
(1) Annualized *T
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