Exhibit 99
PRESS RELEASE OF FSB COMMUNITY BANKSHARES, INC.
May 1, 2008
FOR IMMEDIATE RELEASE
Contact: Dana C. Gavenda, Chief Executive Officer
FSB Community Bankshares, Inc.
Tel (585) 223-9080
FSB COMMUNITY BANKSHARES, INC.
ANNOUNCES QUARTERLY RESULTS
Fairport, New York, May 1, 2008: FSB Community Bankshares, Inc. (the "Company")
(OTC Bulletin Board: FSBC), the mid-tier stock holding company of Fairport
Savings Bank (the "Bank"), reported a net loss of $106,000 for the quarter ended
March 31, 2008 compared to net loss of $135,000 for the quarter ended March 31,
2007. Loss per basic share for quarter ended March 31, 2008 was $(0.06).
Assuming that 946,050 shares that are held by FSB Community Bankshares, MHC, the
Company's parent mutual holding company, were outstanding for the quarter ended
March 31, 2007, the loss per basic share for that quarter would have been
$(0.14).
The decrease of $29,000 in net loss for the first quarter of 2008 compared to
the first quarter of 2007 resulted primarily from an increase in interest
earning assets, due to the investment of the proceeds of our initial stock
offering that closed in August 2007.
The Company's net interest margin for the quarter ended March 31, 2008 decreased
28 basis points to 2.02% from 2.30% for the quarter ended March 31, 2007. The
decrease in our net interest margin is consistent with the lagging effect of the
flat or inverted yield curve that existed for much of 2007, as well as
competitive market rates for certificates of deposit and the impact of the
balance sheet leverage transaction described below. We expect that the decrease
in the Federal Fund's rate of 200 basis points during the first quarter of 2008
should improve our net interest margin over the next few quarters, as customers'
certificates of deposits mature and renew at these lower interest rates.
In February 2008, the Company executed a $14.6 million mortgage-backed
securities balance sheet leverage strategy in an effort to increase earnings
that, at the time of the transaction, generated a positive 149 basis point
spread over Federal Home Loan Bank funding costs.
At March 31, 2008, the Company had $193.0 million in consolidated assets, an
increase of $25.4 million, or 15.2%, from $167.6 million at December 31, 2007.
Total deposits increased $9.1 million, or 7.6%, to $128.3 million at March 31,
2008 from $119.2 million at December 31, 2007. Federal Home Loan Bank advances
increased $17.3 million to $42.9 million at March 31, 2008. Stockholders' equity
at March 31, 2008 was $20.0 million, or 10.4% of assets.
The credit quality of the Bank's loan portfolio remains solid. The Bank
continues to have no involvement in, and has no exposure to, sub-prime lending
activities. The Bank ended the first quarter with gross loans of $123.6 million,
with no non-performing loans.
FSB Community Bankshares, MHC owns 53% of the stock of the Company. The Company
is a federally chartered corporation. The Bank conducts business from its main
office in Fairport, New York and two branches located in Penfield and
Irondequoit, New York. The Bank's principal business consists of originating
one-to-four-family residential real estate mortgages, home equity loans and
lines of credit, and to a lesser extent, 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 Sheets
March 31, 2008 and December 31, 2007
(Dollars in thousands, except per share data)
(Unaudited)
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Assets March 31, 2008 December 31, 2007
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Assets $193,034 $167,630
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Cash and Cash Equivalents 9,327 9,444
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Investment Securities 54,229 28,794
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Net Loans Receivable 123,606 124,326
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Deposits 128,299 119,158
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Short-term and long-term borrowings 42,890 25,581
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Total stockholders' equity 20,046 20,149
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Book value per share $ 11.66 $ 11.75
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Stockholders' equity to total assets 10.4% 12.0%
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FSB COMMUNITY BANKSHARES, INC.
Selected Consolidated Statements of Operations
Three Months Ended March 31, 2008 and March 31, 2007
(Dollars in thousands except per share data)
(Unaudited)
- --------------------------------------------- -------------------------------------
For the Three Months Ended March
31,
- --------------------------------------------- ------------------ ------------------
2008 2007
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Iterest and Dividend Income 2,406 2,094
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Interest Expense 1,520 1,253
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Net Interest Income 886 841
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Other Income 94 81
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Other Expense 1,144 1,132
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Loss Before Income Taxes (164) (210)
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Benefit for Income Taxes (58) (75)
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Net Loss (106) (135)
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Basic loss per common share (0.06) (0.14)
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Basic average common shares outstanding (1) 1,719 946
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(1) Assumes that at March 31, 2007, 946,050 shares of common stock, which equals
the 53.0% interest of the Company's common stock held by FSB Community
Bankshares, MHC, were outstanding.
* * *
(End)