Exhibit 99.1
PRESS RELEASE
Release Date: April 1, 2008
| For Further Information: | Charles E. Wagner, Jr. |
| | Executive Vice President and Corporate Secretary |
| | 443-265-5570 |
| | E-mail-c.wagner@slavie.com |
SFSB, INC. ANNOUNCES EARNINGS FOR THE 4th QUARTER OF FISCAL 2007.
BEL AIR, MD. - April 1, 2008 - SFSB, INC. (OTCBB: SFBI) today reported net income for the quarter ended December 31, 2007 of $124,000 or $.04 diluted earnings per share as compared to net income of $68,000 for the quarter ended December 31, 2006. The increase in earnings was primarily due to an $87,000 increase in interest income and a $55,000 increase in non-interest income for the three months ended December 31, 2007 as compared to the three months ended December 31, 2006. These were offset by a $55,000 increase in non-interest expense, a $27,000 increase in the income tax provision and a $4,000 increase in interest expense. The increase of net income for the fourth quarter is primarily a result of an increase in higher yielding commercial loan originations. Non-interest income increased as a result of selling residential loan originations and an increase in fee income from commissions earned through a financial services operation established in mid-year.
For the twelve months ended December 31, 2007, earnings increased to $103,000 or $.04 diluted earnings per share as compared to $18,000 for the twelve months ended December 31, 2006.
At December 31, 2007, SFSB, Inc., had total assets of $172.2 million, compared to $174.2 million at December 31, 2006. The decline in assets is primarily due to decreases in our cash and cash equivalents, investment securities - held to maturity and mortgage backed securities - held to maturity. During the twelve-month period we used cash, the proceeds of a matured investment and the principal repayments of the mortgage backed securities to pay off $5.0 million in borrowings.
At December 31, 2007, stockholders’ equity amounted to $21.8 million compared to $22.4 million at December 31, 2006. This decrease was primarily the result of the purchase of $914,000 in additional Treasury stock. The decrease in equity also reflects a $23,000 increase in accumulated other comprehensive loss (resulting from unrealized losses on investments available for sale, net of tax), partially offset by net income of $103,000 and stock based compensation of $171,000.
SFSB, Inc., headquartered in Bel Air, Maryland is the holding company of Slavie Federal Savings Bank. The bank is a 107 year old federally chartered, FDIC-insured thrift serving the Baltimore Metropolitan area and surrounding counties in Maryland. The bank offers a wide variety of financial services and products throughout its market area. The bank maintains a website at www.slavie.com.
SFSB, INC.
AUDITED CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
| | | Three Months Ended December 31, | | Twelve Months Ended December 31, | |
| | | 2007 | | 2006 | | 2007 | | 2006 | |
| Interest income | | $ | 2,422 | | $ | 2,335 | | $ | 9,414 | | $ | 9,091 | |
| Interest expense | | | 1,543 | | | 1,539 | | | 6,137 | | | 5,467 | |
| Net interest income | | | 879 | | | 796 | | | 3,277 | | | 3,624 | |
| Provision for loan losses | | | 36 | | | 36 | | | 244 | | | 376 | |
| Net interest income after provision for loan losses | | | 843 | | | 760 | | | 3,033 | | | 3,248 | |
| Non-interest income | | | 157 | | | 102 | | | 434 | | | 277 | |
| Non-interest expenses | | | 804 | | | 749 | | | 3,286 | | | 3,482 | |
| Income before income tax provision | | | 196 | | | 113 | | | 181 | | | 43 | |
| Income tax provision | | | 72 | | | 45 | | | 78 | | | 25 | |
| Net income | | $ | 124 | | $ | 68 | | $ | 103 | | $ | 18 | |
| Basic earnings per share | | | .04 | | | .02 | | | .04 | | | .01 | |
| Diluted earnings per share | | | .04 | | | .02 | | | .04 | | | .01 | |
SFSB, INC
AUDITED SELECTED FINANCIAL DATA
(In thousands)
| | | December 31, 2007 | | December 31, 2006 | |
| | | | | | |
| Total assets | | $ | 172,244 | | $ | 174,225 | |
| Cash and cash equivalents | | | 1,277 | | | 2,851 | |
| Investment securities | | | 11,942 | | | 12,526 | |
| Loans receivable-net | | | 147,744 | | | 147,118 | |
| Deposits | | | 114,098 | | | 111,823 | |
| Total borrowings | | | 34,000 | | | 39,000 | |
| Total stockholders’ equity | | | 21,769 | | | 22,365 | |
