PRESS RELEASE OF FSB COMMUNITY BANKSHARES, INC.
April 29, 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 RESULTS
Fairport, New York, April 29, 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 $51,000 for the
quarter ended March 31, 2009 compared to a net loss of $106,000 for the quarter
ended March 31, 2008. Net income per share was $0.03 for the quarter ended March
31, 2009 compared to a net loss per share of $(0.06) for the quarter ended March
31, 2008. The Company's net interest margin for the quarter ended March 31, 2009
increased 52 basis points to 2.53% from 2.01% for the quarter ended March 31,
2008.
The $157,000 improvement in net income (loss) for the first quarter of 2009
compared to the first quarter of 2008 resulted primarily from an increase in net
interest income, reflective of an increase in higher yielding interest earning
assets and the Company's ability to reduce the deposit costs in a low interest
rate environment, an increase in other income, partially offset by an increase
in other expenses.
At March 31, 2009, the Company had $199.4 million in consolidated assets and
$179.0 million in consolidated liabilities. Consolidated stockholders' equity at
March 31, 2009 was $20.4 million, or 10.23% of consolidated assets. Net loans
receivable decreased during the first quarter of 2009 by $7.1 million. The Bank
sold $4.8 million in mortgage loans in the first quarter of 2009 as management
made the decision to sell long term, fixed rate loans in this historically low
interest rate environment. The Bank sold these loans at a significant gain which
was recorded in other income, and will realize servicing income on these loans
in the years ahead. Management felt that selling these loans was a prudent
interest rate risk decision in order to position the balance sheet for higher
interest rates in the future. Total deposits increased $10.9 million to $138.4
million at March 31, 2009 from $127.5 million at December 31, 2008, with deposit
growth at all three 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 first quarter of 2009 with net loans
receivable of $128.6 million, with only three non-performing loans totaling
$133,000. Management believes no losses will be recognized on these loans and
continues to actively monitor the performance of the loan portfolio during these
difficult economic times.
Investment securities increased by $7.0 million, or 13.7% to $58.2 million on
March 31, 2009 from $51.2 million on December 31, 2008. The Company has reviewed
its investment securities portfolio totaling $58.2 million at March 31, 2009,
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 Consolidated Balance Sheet Information
March 31, 2009 and December 31, 2008
(Dollars in thousands, except per share data)
(Unaudited) (Unaudited)
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March 31, December 31,
Assets 2009 2008
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Assets $199,367 $196,135
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Cash and Cash Equivalents 6,604 3,173
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Investment Securities 58,214 51,214
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Net Loans Receivable 128,640 135,713
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Deposits 138,395 127,522
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Short-term and long-term borrowings 38,318 45,481
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Total stockholders' equity 20,389 20,041
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Book value per share $ 11.83 $ 11.64
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Stockholders' equity to total assets 10.23% 10.22%
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FSB COMMUNITY BANKSHARES, INC.
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Selected Consolidated Statements of Operations Information
Three Months Ended March 31, 2009 and March 31, 2008
(Dollars in thousands except per share data)
(Unaudited)
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For the Three Months Ended
March 31,
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2009 2008
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Interest and Dividend Income $ 2,501 $ 2,406
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Interest Expense 1,304 1,520
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Net Interest Income 1,197 886
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Provision for Loan Losses 6 -
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Net Interest Income after 1,191 886
Provision for Loan Losses
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Other Income 134 94
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Other Expense 1,246 1,144
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Income (Loss) Before Income Taxes 79 (164)
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Provision (Benefit) for Income Taxes 28 (58)
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Net Income (Loss) 51 (106)
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Earnings (Loss) per common share $ 0.03 $ (0.06)
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Average common shares outstanding (In 1,723 1,719
thousands)
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(End)