PRESS RELEASE OF FSB COMMUNITY BANKSHARES, INC.
October 31, 2008
FOR IMMEDIATE RELEASE
Contact: Dana C. Gavenda, Chief Executive Officer
FSB Community Bankshares, Inc.
Tel (585) 223-9080
FSB COMMUNITY BANKSHARES, INC.
ANNOUNCES THIRD QUARTER RESULTS
Fairport, New York, October 31, 2008: 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 $1,000 for the
quarter ended September 30, 2008 compared to a net loss of $1,000 for the
quarter ended September 30, 2007. Net income per basic share was $0.00 for the
quarter ended September 30, 2008. Assuming that 946,050 shares that are held by
FSB Community Bankshares, MHC, the Company's parent mutual holding company, were
outstanding for the entire quarter ended September 30, 2007, the net income per
share would have been $0.00 for the quarter ended September 30, 2007.
For the nine months ended September 30, 2008, the Company reported a net loss of
$95,000 compared to a net loss of $248,000 for the nine months ended September
30, 2007. Net loss per basic share for the nine months ended September 30, 2008
was $(0.06) compared to a net loss per basic share of $(0.23) for the nine
months ended September 30, 2007.
Net income for the third quarter of 2008 compared to the third quarter of 2007
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 impairment charge in the Company's holdings of Freddie Mac
common stock resulted from the decline in market value of these shares in
connection with the federal government's conservatorship of Freddie Mac in
September 2008. The carrying value of the Company's remaining Freddie Mac common
stock at September 30, 2008 after the other-than-temporary impairment charge was
not material. The Company does not have any preferred stock issued by Freddie
Mac or Fannie Mae.
Net interest income increased by $230,000 to $1.2 million for the quarter ended
September 30, 2008 from $921,000 for the quarter ended September 30, 2007.
Additionally, the Company's net interest margin increased by 9 basis points to
2.40% for the quarter ended September 20, 2008 from 2.31% for the quarter ended
September 30, 2007. The net interest income improvement of $230,000 when
comparing the two quarters was primarily a result of a higher percentage of
earning assets deployed in higher yielding loans and investments, together with
the benefit of lower yielding liabilities due to a decline in short term
interest rates with a steeper and more favorable yield curve in 2008.
At September 30, 2008, the Company had $199.5 million in consolidated assets, an
increase of $31.9 million, or 19.0%, from $167.6 million at December 31, 2007.
Total deposits increased $13.2 million, or 11.1%, to $132.4 million at September
30, 2008 from $119.2 million at December 31, 2007. Federal Home Loan Bank
advances increased $17.0 million to $42.6 million at September 30, 2008
resulting from management's decision to utilize wholesale borrowing as a lower
cost alternative to higher priced short term certificates of deposit to fund
loan and investment growth. Stockholders' equity at September 30, 2008 was $19.9
million, or 9.95% of assets compared to 20.1 million, or 12% of assets at
December 31, 2007.
The credit quality of the Bank's loan portfolio remains solid. We had no loans
classified as non-performing at September 30, 2008. The Bank has no involvement
in, and has no exposure to, sub-prime lending activities. The Bank continues to
execute on its' business plan of making high quality loans to our customers and
potential customers in our market area with $5.1 million, or 15.3% annualized
loan growth in the third quarter of 2008, with gross loans at September 30, 2008
of $137.3 million. The Bank continues to be well capitalized with strong
liquidity ratios.
FSB Community Bankshares, MHC owns 53% of the outstanding common 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.
FSB COMMUNITY BANKSHARES, INC.
Selected Consolidated Balance Sheet Information
September 30, 2008 and December 31, 2007
(Dollars in thousands, except per share data)
(Unaudited)
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September 30, December 31,
2008 2007
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Total Assets $199,520 $167,630
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Cash and Cash Equivalents 6,597 9,444
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Investment Securities 49,952 28,794
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Net Loans Receivable 136,963 124,326
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Deposits 132,364 119,158
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Borrowings 42,622 25,581
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Total stockholders' equity 19,856 20,149
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Book value per share $ 11.55 $ 11.75
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Stockholders' equity to total assets 9.95% 12.0%
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FSB COMMUNITY BANKSHARES, INC.
Selected Consolidated Statement of Operations Information
Three Months and Nine Months Ended September 30, 2008 and September 30, 2007
(Dollars in thousands except per share data)
(Unaudited)
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For the Three Months Ended For the Nine Months Ended
September 30, September 30,
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2008 2007 2008 2007
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Interest and Dividend Income 2,614 2,308 7,555 6,530
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Interest Expense 1,463 1,387 4,479 3,959
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Net Interest Income 1,151 921 3,076 2,571
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Provision for Loan Losses 8 - 14 -
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Net Interest Income after Provision for 1,143 921 3,062 2,571
Loan Losses
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Other Income 89 169 314 328
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Other Expense 1,197 1,091 3,491 3,285
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Income (Loss) Before Income Taxes 35 (1) (115) (386)
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Provision (Benefit) for Income Taxes 34 - (20) (138)
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Net Income (Loss) 1 (1) (95) (248)
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Basic Net Income (loss) per common share 0.00 (0.00) (0.06) (0.23)
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Average common shares outstanding (1) 1,719 1,381 1,719 1,093
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(1) Assumes that for the period ended September 30, 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)