PRESS RELEASE OF FSB COMMUNITY BANKSHARES, INC.
February 4, 2009
FOR IMMEDIATE RELEASE
Contact: Dana C. Gavenda, Chief Executive Officer
FSB Community Bankshares, Inc.
Tel (585) 223-9080
FSB COMMUNITY BANKSHARES, INC.
ANNOUNCES QUARTERLY AND ANNUAL RESULTS
Fairport, New York, February 4, 2009: 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)
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December 31, December 31,
Assets 2008 2007
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Assets $196,135 $167,630
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Cash and Cash Equivalents 3,173 9,444
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Investment Securities 51,214 28,794
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Net Loans Receivable 135,713 124,326
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Deposits 127,522 119,158
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Short-term and long-term borrowings 45,481 25,581
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Total stockholders' equity 20,041 20,149
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Book value per share $ 11.64 $ 11.75
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Stockholders' equity to total assets 10.22% 12.02%
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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)
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For the Three Months Ended For the Year Ended
December 31, December 31,
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2008 2007 2008 2007
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Interest and Dividend Income $ 2,604 $ 2,285 $ 10,159 $ 8,815
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Interest Expense 1,383 1,410 5,862 5,369
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Net Interest Income 1,221 875 4,297 3,446
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Provision for Loan Losses 10 - 24 -
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Net Interest Income after
Provision for Loan Losses 1,211 875 4 ,273 3,446
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Other Income 139 101 453 429
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Other Expense 1,166 1,027 4,657 4,312
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Income (Loss) Before Income Taxes 184 (51) 69 (437)
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Provision (benefit) for Income Taxes 64 (18) 44 (156)
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Net Income (Loss) 120 (33) 25 (281)
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Basic earnings (loss) per common share $ 0.07 $ (0.02) $ 0.01 $ (0.22)
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Basic average common shares outstanding 1,722 1,715 1,721 1,249
(In thousands)
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(End)