FAIRPORT, N.Y., Feb. 4 /PRNewswire-FirstCall/ -- FSB Community Bankshares, Inc. (the "Company") (OTC Bulletin Board: FSBC), the mid-tier stock holding company of Fairport Savings Bank (the "Bank"), reported net income of $120,000 for the quarter ended December 31, 2008 compared to a net loss of $33,000 for the quarter ended December 31, 2007. Net income per basic share was $0.07 for the quarter ended December 31, 2008 compared to a net loss per basic share of $(0.02) for the quarter ended December 31, 2007. The Company's net interest margin for the quarter ended December 31, 2008 increased 35 basis points to 2.56% from 2.21% for the quarter ended December 31, 2007.
For the year ended December 31, 2008, the Company reported net income of $25,000 compared to a net loss of $281,000 for the year ended December 31, 2007. Net income per basic share for the year ended December 31, 2008 was $0.01 compared to a net loss per basic share of $(0.22) for the year ended December 31, 2007. The Company's net interest margin for the year ended December 31, 2008 increased 5 basis points to 2.30% from 2.25% for the year ended December 31, 2007. The year over year increase in net income was primarily a result of improvement in the net interest margin, reflective of a higher percentage of interest earning assets to interest bearing liabilities and the Bank's management of loan and deposit rates in a lower interest rate environment, as well as the Bank's strong asset quality.
At December 31, 2008, the Company had $196.1 million in consolidated assets and $176.1 million in consolidated liabilities. Stockholders' equity at December 31, 2008 was $20.0 million, or 10.22% of assets. Net loans receivable increased year over year by $11.4 million with $29.8 million in loan originations for 2008. Total deposits increased $8.3 million to $127.5 million at December 31, 2008 from $119.2 million at December 31, 2007, with deposit growth at all three of our branches.
The credit quality of the Bank's loan portfolio remains solid. The Bank continues not to be involved in, and has no exposure to, sub-prime or Alt-A lending activities. The Bank ended the year with net loans receivable of $135.7 million, with only three non-performing loans totaling $146,000. Management continues to actively monitor the performance of the loan portfolio during these difficult economic times.
As we previously disclosed in our Form 10-Q for the quarter ended September 30, 2008, net income for the third quarter of 2008 included a $57,000 other-than-temporary impairment charge related to the Company's investment in Federal Home Loan Mortgage Corporation (Freddie Mac) common stock. The carrying value of the Company's remaining Freddie Mac common stock after the impairment charge is not material. The Company has reviewed its investment securities totaling $51.2 million at December 31, 2008, and does not expect to record any "other-than-temporary impairment charges in this portfolio. The Company does not hold any mortgage-backed securities collateralized by sub-prime mortgages, Freddie Mac or Fannie Mae preferred stock, trust preferred securities or common stock of other banks.
FSB Community Bankshares, MHC owns 53% of the outstanding common stock of the Company. The Company is a federally chartered corporation. The Bank, the wholly owned subsidiary of the Company, conducts business from its main office in Fairport, New York and two branches located in Penfield, New York and Irondequoit, New York. The Bank's principal business consists of originating one- to four- family residential real estate mortgages, loans and home equity lines of credit and to a lesser extent originations of commercial real estate, multi-family, construction and other consumer loans. The Bank attracts retail deposits from the general public in the areas surrounding its main office and branches, offering a wide variety of deposit products. Through its wholly owned subsidiary, Oakleaf Services Corporation, the Bank offers non-deposit investment products, consisting of annuities, insurance products and mutual funds.
Statements contained in this news release, which are not historical facts, contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risk and uncertainties, which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.
Selected Balance Sheet Information
December 31, 2008 and December 31, 2007
(Dollars in thousands, except per share data)
(Unaudited)
December 31, December 31,
Assets 2008 2007
------------ ------------
Assets $196,135 $167,630
Cash and Cash Equivalents 3,173 9,444
Investment Securities 51,214 28,794
Net Loans Receivable 135,713 124,326
Deposits 127,522 119,158
Short-term and long-term borrowings 45,481 25,581
Total stockholders' equity 20,041 20,149
Book value per share $11.64 $11.75
Stockholders' equity to total assets 10.22% 12.02%
FSB COMMUNITY BANKSHARES, INC.
Selected Consolidated Statements of Operations
Three Months and Years Ended December 31, 2008 and December 31, 2007
(Dollars in thousands except per share data)
(Unaudited) (Unaudited)
For the Three Months For the Year
Ended Ended
December 31, December 31,
2008 2007 2008 2007
---- ---- ---- ----
Interest and Dividend Income $2,604 $2,285 $10,159 $8,815
Interest Expense 1,383 1,410 5,862 5,369
Net Interest Income 1,221 875 4,297 3,446
Provision for Loan Losses 10 - 24 -
Net Interest Income after 1,211 875 4 ,273 3,446
Provision for Loan Losses
Other Income 139 101 453 429
Other Expense 1,166 1,027 4,657 4,312
Income (Loss) Before Income Taxes 184 (51) 69 (437)
Provision (benefit) for Income
Taxes 64 (18) 44 (156)
Net Income (Loss) 120 (33) 25 (281)
Basic earnings (loss) per
common share $0.07 $(0.02) $0.01 $(0.22)
Basic average common shares
outstanding (In thousands) 1,722 1,715 1,721 1,249
SOURCE FSB Community Bankshares, Inc.
