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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------------------
AMENDMENT NO. 1 FORM 10-QSB/A
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to _______
Commission File Number: No. 0-22742
GFS BANCORP, INC.
______________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 42-1410536
- -------------------------------- ------------------
(State of other jurisdiction of (I.R.S. Employer
of incorporation or organization Identification No.)
1025 Main Street, Grinnell, Iowa 50112-0030
-------------------------------------------
(Address of principal executive offices)
(515) 236-3121
-------------------------
(Issuer's telephone number)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 of 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. [X] Yes [ ] No
Transitional Small Business Disclosure Format (check one):
[ ] Yes [X] No
State the number of Shares outstanding of each of the
issuer's classes of common equity, as of the latest date:
As of December 31, 1997, there were 966,242 shares of the
Registrant's common stock issued and outstanding, including
8,252 shares of restricted stock.<PAGE>
<PAGE>
GFS BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
December 31 June 30,
1997 1997
------------ ------------
<S> <C> <C>
ASSETS
Cash and amounts due from depository institutions:
Noninterest bearing $ 293,696 $ 334,287
Interest bearing 6,612,159 4,308,632
Securities available for sale 805,735 1,909,490
Securities held to maturity 1,498,069 1,497,785
Mortgage-backed securities held to maturity 2,991,984 3,145,696
Stock in Federal Home Loan Bank, at cost
(approximate fair value) 1,159,000 1,159,000
Loans receivable, net 79,703,968 78,474,914
Real estate acquired in settlement of loans, net 211,828 0
Premises and equipment, net 229,068 223,236
Accrued interest receivable 546,382 520,661
Other assets 494,362 489,552
------------ ------------
Total Assets $ 94,546,251 $ 92,063,253
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Demand $ 7,743,644 $ 6,273,344
Savings and money market 12,104,362 11,617,756
Certificates of deposit 42,035,023 41,659,676
------------ ------------
Total Deposits 61,883,029 59,550,776
Advances from Federal Home Loan Bank 20,431,697 20,961,466
Advances from borrowers for taxes and insurance 682,174 713,593
Accrued dividends payable 64,756 64,235
Other accrued expenses and liabilities 299,378 236,005
------------ ------------
Total Liabilities $ 83,361,034 $ 81,526,075
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS EQUITY
Preferred stock, $.01 par value,
authorized 500,000 shares, issued none $ -- $ --
Common stock, $.01 par value,
authorized 2,000,000 shares; issued
December 1,108,720 shares;
June 1,100,720 shares 11,087 11,007
Additional paid-in capital 5,332,530 5,202,310
Retained earnings -substantially restricted 6,981,093 6,523,527
Less:
Unearned employee stock ownership plan (167,651) (197,631)
Unearned retention and recognition plan (1,075) (7,225)
Treasury stock at cost 112,478 shares (1,055,302) (1,055,302)
Unrealized gain on securities
available for sale, net 84,535 60,492
------------ ------------
Total Stockholders' Equity $ 11,185,217 $ 10,537,178
------------ ------------
Total Liabilities and Stockholders' Equity $ 94,546,251 $ 92,063,253
============ ============
</TABLE>
1 <PAGE>
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GFS BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three months ended Six Months Ended
December 31, December 31,
------------------------- ------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Interest income:
Loans receivable $1,721,402 $1,605,928 $3,465,367 $3,212,764
Mortgage-backed securities 56,584 60,385 114,468 122,872
Other securities and interest-bearing
cash accounts 135,192 101,452 237,433 191,399
---------- ---------- ---------- ----------
1,913,178 1,767,765 3,817,268 3,527,035
---------- ---------- ---------- ----------
Interest expense:
Deposits 779,379 744,059 1,544,571 1,453,749
Advances from Federal Home Loan Bank 318,748 285,419 644,008 580,670
---------- ---------- ---------- ----------
1,098,127 1,029,478 2,188,579 2,034,419
---------- ---------- ---------- ----------
Net interest income 815,051 738,287 1,628,689 1,492,616
Provision for loan losses 24,000 24,000 48,000 73,000
---------- ---------- ---------- ----------
Net interest income after provision
for loan losses 791,051 714,287 1,580,689 1,419,616
Noninterest income:
Gain (loss) on sale of securities
available for sale 91,562 0 88,559 (1,576)
Other 48,743 29,005 97,422 63,536
---------- ---------- ---------- ----------
140,305 29,005 185,981 61,960
---------- ---------- ---------- ----------
Noninterest expense:
Salaries and employee benefits 263,265 237,923 503,047 451,646
Occupancy expenses 26,250 22,264 47,700 41,755
Federal deposit insurance premiums 9,424 30,647 18,652 59,738
FDIC-SAIF Special Assessment 0 0 0 287,568
Data processing services 18,827 16,755 37,665 33,889
Other 174,418 106,885 274,466 186,374
---------- ---------- ---------- ----------
492,184 414,474 881,530 1,060,970
---------- ---------- ---------- ----------
Income before provision for income taxes 439,172 328,818 885,140 420,606
Provision for income taxes 153,050 81,500 301,050 137,582
---------- ---------- ---------- ----------
Net income $ 286,122 $ 247,318 $ 584,090 $ 283,024
========== ========== ========== ==========
Basic earnings per common share $ 0.30 $ 0.26 $ 0.62 $ 0.30
Diluted earnings per common share $ 0.27 $ 0.25 $ 0.56 $ 0.28
========== ========== ========== ==========
</TABLE>
2<PAGE>
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GFS BANCORP, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED DECEMBER 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
Additional ESOP
Common Paid-in Retained Stock
Stock Capital Earnings Awards
-------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Balance, June 30, 1997 $ 11,007 $5,202,310 $6,523,527 $ (197,631)
Net income 584,090
Dividends (126,524)
ESOP common stock released
for allocation 63,540 29,980
Amortization of RRP
contributions
Common stock issued to fund
stock options exercised
(8,000 shares) 80 66,680
Net change in unrealized
loss on securities
available for sale
-------- ---------- ---------- ----------
Balance, December 31, 1997 $ 11,087 $5,332,530 $6,981,093 $ (167,651)
-------- ---------- ---------- ----------
</TABLE>
<TABLE>
<CAPTION>
Net Unrealized
Loss on
RRP Available Total
Stock Treasury for Sale Stockholders'
Awards Stock Securities Equity
-------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Balance, June 30, 1997 $ (7,225) $(1,055,302) $ 60,492 $10,537,178
Net income 584,090
Dividends (126,524)
ESOP common stock released
for allocation 93,520
Amortization of RRP
contributions 6,150 6,150
Common stock issued to fund
stock options exercised
(8,000 shares) 66,760
Net change in unrealized
loss on securities
available for sale 24,043 24,043
-------- ----------- ---------- -----------
Balance, December 31, 1997 $ (1,075) $(1,055,302) $ 84,535 $11,185,217
======== =========== ========== ===========
</TABLE>
3
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GFS BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six months ended
December 31,
--------------------------
1997 1996
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 584,090 $ 283,024
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 19,535 17,231
Gain (loss) on sale of available for sale investments (88,559) 1,576
ESOP and RRP expense 99,670 82,856
Deferred loan fees, net (17,214) (3,538)
Provisions for loan losses 48,000 73,000
Purchase of loans for resale (9,926,180) (9,613,683)
Proceeds for the sale of loans 9,926,180 9,613,683
Change in:
Accrued interest receivable (25,721) (30,517)
Other assets (4,810) 36,017
Other liabilities 48,673 (116,576)
---------- ----------
Net cash provided by operating activities 663,664 343,073
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Maturity of securities held to maturity 0 85,000
Proceeds from sales of securities available for sale 1,380,773 99,925
Purchase of securities available for sale (150,000) 0
Principal payments received on mortgage-backed
securities 153,712 193,027
Purchase of loans to be held in portfolio (4,920,409) (4,019,583)
Net change in loans outstanding 3,448,741 (174,892)
Proceeds from sale of real estate 0 226,616
Purchase of premises and equipment (25,367) (10,323)
---------- ----------
Net cash (used) by investing activities (112,550) (3,600,230)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits 2,332,253 5,332,814
Advances from Federal Home Loan Bank 1,000,000 500,000
Repayment of advances from the Federal Home Loan Bank (1,529,769) (1,527,776)
Net (decrease) increase in advances from borrowers
for taxes and insurance (31,419) 27,069
Proceeds from the issuance of common stock for stock
options exercised 66,760 0
Purchase of treasury stock 0 (204,875)
Dividends paid (126,003) (96,661)
---------- ----------
Net cash provided by financing activities 1,711,822 4,030,571
---------- ----------
Net(increase) in cash and cash equivalents 2,262,936 773,414
Cash and cash equivalents, beginning of period 4,642,919 2,271,132
---------- ----------
Cash and cash equivalents, end of period $6,905,855 $3,044,546
========== ==========
</TABLE>
4<PAGE>
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GFS BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) Basis of Presentation
---------------------
The accompanying unaudited Consolidated Financial
Statements have been prepared in accordance with generally
accepted accounting principles for interim financial information
and with the instructions to Form 10-QSB and Regulation S-X.
Accordingly, they do not include all the information and
footnotes required by generally accepted accounting principles
for complete financial statements.
In the opinion of management, the Consolidated Financial
Statements contain all adjustments (consisting only of normal
recurring adjustments) necessary to present fairly the financial
condition of GFS Bancorp, Inc. as of December 31, 1997 and
June 30, 1997, the results of its operations for the three
months and six months ended December 31, 1997 and 1996, changes
in stockholders' equity for the six months ended December 31,
1997 and for the statement of cash flows for the six months
ended December 31, 1997 and 1996.
Operating results for the three months and six months ended
December 31, 1997 are not necessarily indicative of the results
that may be expected for the fiscal year ending June 30, 1998.
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(2) Earnings Per Share of Common Stock
----------------------------------
The Company adopted FASB No. 128 "earnings per share"
effective January 1, 1998. The previous year computations have
been restated to conform to FASB 128.
The table below sets forth the earnings per share
computation for the three and six months periods ending December
31, 1997 and 1996.
December 31, 1997
Basic EPS Diluted EPS
--------- -----------
3 months 6 months 3 months 6 months
-------- -------- -------- --------
Weighted
Avg Shares 996,242 992,242 996,242 992,242
Unallocted
ESOP & RRP
Shares (42,370) (44,012) (34,182) (35,794)
Options -- -- 89,983 85,772
--------- --------- ---------- ---------
Total Shares 953,872 948,230 1,052,043 1,042,220
Net Income for
the periods $ 286,122 $ 584,090 $ 286,122 $ 584,090
Earnings Per
Share $0.30 $0.62 $0.27 $0.56
December 31, 1996
Basic EPS Diluted EPS
--------- -----------
3 months 6 months 3 months 6 months
-------- -------- -------- --------
Weighted
Avg Shares 1,004,418 1,006,907 1,004,418 1,006,907
Unallocted
ESOP & RRP
Shares (66,022) (67,739) (47,718) (49,738)
Options -- -- 51,153 51,256
--------- --------- ---------- ---------
Total Shares 938,396 939,168 1,007,853 1,008,425
Net Income for
the periods $ 247,318 $ 283,024 $ 247,318 $ 283,024
Earnings Per
Share $0.26 $0.30 $0.25 $0.28
6<PAGE>
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(3) Regulatory Capital Requirements
-------------------------------
Pursuant to Office of Thrift Supervision Regulations,
savings institutions must meet three separate minimum capital-
to-asset requirements. The following table summarizes, as of
December 31, 1997, the capital requirements for Grinnell Federal
Savings Bank (the "Bank") under these regulations. As of
December 31, 1997 the Bank Substantially exceeded all current
regulatory capital standards.
<TABLE>
<CAPTION>
Regulatory Actual
Capital Capital
Requirement (Bank Only) Excess Capital
--------------- --------------- --------------
Amount Percent Amount Percent Amount Percent
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C>
Risk-Based . . . . . . . $4,178 8.0% $10,118 19.37% $5,940 11.37%
Core Capital . . . . . . 2,801 3.0 9,526 10.20 6,725 7.20
Tangible Capital . . . . 1,401 1.5 9,526 10.20 8,125 8.70
</TABLE>
(4) Pending Accounting Pronouncements
---------------------------------
The Financial Accounting Standards Board (FASB) has
approved, effective for years beginning after December 15, 1997,
Statement No. 129, "Disclosure of Information About Capital
Structure", Statement No. 130, "Reporting Comprehensive Income
and Statement No. 131, "Disclosure About Segments of an
Enterprise and Related Information". FASB Statements No. 129,
130 and 131 are not expected to have a material effect on the
Company's financial statements when adopted.
(5) Pending Acquisition by First Federal Savings Bank of
Siouxland
----------------------------------------------------
On October 16, 1997, the Company entered into an Agreement
and Plan of Reorganization (the "Agreement"), providing for the
acquisition of the Company by First Federal Savings Bank of
Siouxland ("First Federal"), a mutual holding company
headquartered in Sioux City, Iowa. The Agreement provides for
the conversion of each issued and outstanding share of the
Company's common stock into the right to receive $17.65 per
share in cash
7<PAGE>
<PAGE>
from First Federal. The acquisition is subject to receipt of
regulatory approvals, approval by the Company's shareholders (at
a meeting scheduled for March 12, 1998) and other conditions.
Management currently expects the acquisition to be completed in
late March or April 1998.
8<PAGE>
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SIGNATURES
Pursuant to the requirement of the Securities Exchange Act
of 1934, the registrant has duly caused this Report to be signed
on its behalf by the undersigned thereunto duly authorized.
GFS BANCORP, INC.
Registrant
Date: March 13, 1998 /s/ Steven L. Opsal
---------------------------------
Steven L. Opsal, President
and Chief Executive Officer
Date: March 13, 1998 /s/ Katherine A. Rose
---------------------------------
Katherine A. Rose, Vice President
and Chief Financial Officer
