-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OZVjrKlvqboMHQnIb4+MtzLsgFIKdH3gsXjtl5gGOQGpugPSh6s3+9StL/fQTbjL jDOR7/+LVsIYx1wSnx+naQ== 0001019056-04-001244.txt : 20041013 0001019056-04-001244.hdr.sgml : 20041013 20041013164954 ACCESSION NUMBER: 0001019056-04-001244 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041013 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041013 DATE AS OF CHANGE: 20041013 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VSB BANCORP INC CENTRAL INDEX KEY: 0001225874 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 113680128 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-50237 FILM NUMBER: 041077364 BUSINESS ADDRESS: STREET 1: 3155 AMBOY ROAD CITY: STATEN ISLAND STATE: NY ZIP: 10306 BUSINESS PHONE: 7189791100 MAIL ADDRESS: STREET 1: 3155 AMBOY ROAD CITY: STATEN ISLAND STATE: NY ZIP: 10306 8-K 1 vsb_8k.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 13, 2004 VSB Bancorp, Inc. ------------------------------------------------------ (Exact Name of Registrant as specified in its charter) New York 0-50237 11-3680128 - -------------------------------------------------------------------------------- (State or other jurisdiction Commission File IRS Employer Identification of incorporation) Number No. 3155 Amboy Road, Staten Island, New York 10306 -------------------------------------------------------- Address of principal (Zip/Postal Code) executive offices Registrant's telephone number: 718-979-1100 n/a ------------------------------------------------------------- (Former name or former address, if changed since last report) TABLE OF CONTENTS ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS SIGNATURES ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On October 13, 2004, VSB Bancorp, Inc. (the "Company") reported its results of operations for the quarter ended September 30, 2004 of $618,841 or diluted earnings per share of $0.41, and for the nine months ended September 30, 2004 of $1,607,319 or diluted earnings per share of $1.08. The Company's return on average assets and average equity was 1.19% and 22.40%, respectively, for the quarter ended September 30, 2004. This information and the accompanying press release were disseminated on October 13, 2004 through the broad distribution of the press release in a manner designed to provide broad, non-exclusionary distribution of the information to the public, but this voluntary report on Form 8-K is being filed so that the public can have a consistent source for earnings releases by searching the SEC's EDGAR database. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS c. Exhibits - Press Release dated October 13, 2004 of VSB Bancorp, Inc. describing the results of operations for the quarter and nine months ended September 30, 2004 is annexed as Exhibit 99.1. For additional information, see annexed Exhibit 99.1. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: October 13, 2004 VSB Bancorp, Inc. By: /s/ RAFFAELE M. BRANCA -------------------------------- Raffaele M. Branca Executive Vice President and CFO INDEX TO EXHIBITS Exhibit No. Description 99.1 Press Release reporting results of operations for the quarter and nine months ended September 30, 2004. EX-99.1 2 ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 VSB Bancorp, Inc. Third Quarter 2004 Results of Operations VSB Reports 59% Growth In Quarterly Earnings Contact Name: Ralph M. Branca Executive Vice President (718) 979-1100 Staten Island, N. Y. --October 13, 2004. VSB Bancorp, Inc. (NASDAQ OTCBB: VSBN) reported quarterly net income of $618,841 for the third quarter of 2004, a 59.4% increase from the third quarter of 2003. The following unaudited figures were released today. Pre-tax income was $1,158,300 in the third quarter of 2004, as compared to $726,738 for the third quarter of 2003, an increase of $431,562, or 59.4%. Net income was $618,841, or basic income of $0.43 per common share, as compared to a net income of $388,320, or basic income per common share of $0.28, for the quarter ended September 30, 2003. The increase in net income was attributable to an increase in net interest income of $527,330, an increase in non-interest income of $63,283 and a decrease in the provision for loan loss of $20,000 which were partially offset by an increase in non-interest expense of $179,051 and an increase in income tax expense of $201,041. Total assets increased to $233.6 million, an increase of $48.7 million from December 31, 2003. Total deposits stood at $214.3 million, an increase of $46.6 million, or 27.8%, for the same period. The increase in deposits includes a $5 million deposit from the City of New York, into the St. George branch of the company's subsidiary, Victory State Bank, under the City's new Bank Development District deposit program. The company's Tier 1 capital ratio of 8.14% includes, as Tier 1 capital, $4.2 million (25% of its regulatory capital) from the $5 million trust preferred securities that we issued in August 2003. All per share data have been adjusted for the 4 for 3 stock split, in the form of a 33 1/3 stock dividend, paid on March 8, 2004. Average interest-earning assets grew $32.5 million from the third quarter of 2003 to the third quarter of 2004. Average investment securities and other interest earning assets increased $35.5 million between those same periods. Average demand deposits (an interest free source of funds for investment) remained approximately 44% of average total deposits. The company's interest rate spread and interest rate margin were 4.09% and 4.55%, respectively, for the quarter ending September 30, 2004 as compared to 3.78% and 4.16%, respectively, for the quarter ended September 30, 2003. Non-interest income grew to $471,065 in the third quarter of 2004, an increase of $63,283 from the third quarter of 2003. Non-interest expense totaled $1.5 million, an increase of $179,051 from the third quarter of 2003. The growth in non-interest expense is directly attributable to increased personnel expenses relating to new staff, due to our increase in size, increases in health insurance costs and other benefits, compensation costs associated with the newly established ESOP plan and increased occupancy expenses. Net income for the nine months ended September 30, 2004 was $1.6 million, or basic income of $1.13 per common share, as compared to a net income of $1.0 million, or $0.72 per share for the nine months ended September 30, 2003. This represented a 59.6% increase in net income. Pre-tax income grew to $3.0 million for the first nine months of 2004, as compared to $1.9 million for 2003, an increase of $1.1 million, or 59.7%. The growth in net income was attributable to an increase in net interest income of $1.4 million and an increase in non-interest income of $230,787 partially offset by an increase in non-interest expense of $462,916, an increase in the provision for loan loss of $10,000 and an increase in income tax expense of $523,813. In the nine months ended September 30, 2004, our unrealized loss in available for sale securities increased by $388,695. The increase was the result of increases in market interest rates, which caused downward pressure on the value of our securities portfolio. The unrealized loss, although it reduces GAAP capital, does not reduce capital for bank regulatory purposes at either the bank or the holding company level. Merton Corn, President and CEO of VSB Bancorp, Inc., stated "We had a strong third quarter, as the growth of the company offset the moderate increases in interest rates. Our net margin improved as we were able to invest the cash from our growth into higher yielding securities. Our quarterly earnings of $618,841 is a record." Mr. Joseph J. LiBassi, VSB Bancorp, Inc.'s Chairman stated "Our earnings per share stood at a record $0.43 per common share. Our third quarter 2004 return on assets and return on equity were 1.19% and 22.40%, our best quarterly results. Our success in delivering the highest quality personal service is a direct result of our highly motivated and dedicated staff." VSB Bancorp, Inc. is the one-bank holding company for Victory State Bank. Victory State Bank, a Staten Island based commercial bank, commenced operations on November 17, 1997. The Bank's initial capitalization of $7.0 million was primarily raised in the Staten Island community. The Bancorp's total equity has increased to $12.1 million since its inception. The Bank operates four full service locations in Staten Island, the main office in the Oakwood Heights Shopping Center, the second on Forest Avenue, the third on Hyatt Street and the fourth branch on Hylan Boulevard. The Bank plans to open its fifth branch at 1071 Bay Street, in the Rosebank section of Staten Island, subject to regulatory approval. Statements contained in this press release, which are not historical facts, are forward -looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to materially differ from those currently, anticipated. Those risks and uncertainties include, among other things, possible future changes in (i) the local, regional or national economy, (ii) market interest rates, (iii) customer preferences; (iv) competition or (v) federal or state laws. VSB Bancorp, Inc. Consolidated Statements of Financial Condition September 30, 2004 (unaudited) September 30, December 31, 2004 2003 ------------- ------------- Assets: Cash and due from banks $ 50,764,203 $ 30,187,741 Money market investments, held to maturity 585,742 599,356 Investment securities, available for sale 109,973,728 83,171,547 Loans receivable 68,872,304 67,981,461 Allowance for loan loss (1,237,048) (1,162,776) ------------- ------------- Loans receivable, net 67,635,256 66,818,685 Bank premises and equipment, net 1,894,453 2,132,154 Accrued interest receivable 664,062 588,232 Deferred taxes 1,455,474 934,710 Other assets 673,750 542,545 ------------- ------------- Total assets $ 233,646,668 $ 184,974,970 ============= ============= Liabilities and stockholders' equity: Liabilities: Deposits: Demand and checking $ 103,735,325 $ 77,416,339 NOW 22,545,445 23,627,653 Money market 23,084,095 23,709,155 Savings 13,202,516 10,394,955 Time 51,329,237 32,287,215 ------------- ------------- Total Deposits 213,896,618 167,435,317 Escrow deposits 440,116 267,484 Trust preferred securities 5,000,000 5,000,000 Accounts payable and accrued expenses 2,201,029 1,630,544 ------------- ------------- Total liabilities 221,537,763 174,333,345 Stockholders' equity: Common stock, ($.0001 par value, 3,000,000 shares authorized, 1,505,022 and 1,407,997 issued and outstanding, respectively) 150 106 Additional paid in capital 8,900,442 7,031,499 Retained earnings 5,387,005 3,779,686 Unallocated ESOP Shares (1,620,331) -- Accumulated other comprehensive loss, net of taxes of $487,063 and $148,001, respectively (558,361) (169,666) ------------- ------------- Total stockholders' equity 12,108,905 10,641,625 ------------- ------------- Total liabilities and stockholders' equity $ 233,646,668 $ 184,974,970 ============= ============= VSB Bancorp, Inc. Consolidated Statements of Operations September 30, 2004 (unaudited)
Three months Three months Nine months Nine months ended ended ended ended Sep. 30, 2004 Sep. 30, 2003 Sep. 30, 2004 Sep. 30, 2003 ------------- ------------- ------------- ------------- Interest and dividend income: Loans receivable $ 1,335,491 $ 1,349,614 $ 3,952,991 $ 3,766,538 Investment securities 1,074,268 495,576 2,815,246 1,466,620 Other interest earning assets 87,848 54,542 160,493 176,034 ------------- ------------- ------------- ------------- Total interest income 2,497,607 1,899,732 6,928,730 5,409,192 Interest expense: NOW 25,494 30,199 76,168 96,241 Money market 50,924 57,946 150,876 209,473 Savings 16,910 13,228 45,090 44,650 Trust preferred 86,362 31,666 259,087 31,666 Time 107,626 83,732 267,620 263,678 ------------- ------------- ------------- ------------- Total interest expense 287,316 216,771 798,841 645,708 Net interest income 2,210,291 1,682,961 6,129,889 4,763,484 Provision for loan loss 30,000 50,000 130,000 120,000 ------------- ------------- ------------- ------------- Net interest income after provision for loan loss 2,180,291 1,632,961 5,999,889 4,643,484 Non-interest income: Loan fees 23,109 27,262 57,306 91,571 Service charges on deposits 428,587 354,889 1,264,253 1,010,821 Net rental income/(loss) 3,799 9,792 23,593 18,755 Other income 15,570 15,839 52,848 46,066 ------------- ------------- ------------- ------------- Total non-interest income 471,065 407,782 1,398,000 1,167,213 Non-interest expenses: Salaries and benefits 853,144 706,875 2,483,512 2,063,439 Occupancy expenses 248,119 230,309 707,596 715,632 Legal expense 36,890 36,545 121,188 90,223 Professional fees 49,814 37,880 145,591 113,905 Computer expense 60,914 74,539 196,140 217,237 Other expenses 244,175 227,857 734,681 725,356 ------------- ------------- ------------- ------------- Total non-interest expenses 1,493,056 1,314,005 4,388,708 3,925,792 Income before income taxes 1,158,300 726,738 3,009,181 1,884,905 ------------- ------------- ------------- ------------- Provision (benefit) for income taxes: Current 589,434 372,959 1,583,564 945,959 Deferred (49,975) (34,541) (181,702) (67,910) ------------- ------------- ------------- ------------- Total provision for income taxes 539,459 338,418 1,401,862 878,049 Net income $ 618,841 $ 388,320 $ 1,607,319 $ 1,006,856 ============= ============= ============= ============= Basic income per common share $ 0.43 $ 0.28 $ 1.13 $ 0.72 ============= ============= ============= ============= Fully diluted net income per share $ 0.41 $ 0.26 $ 1.08 $ 0.69 ============= ============= ============= ============= Book value per common share $ 8.05 $ 7.42 $ 8.05 $ 7.42 ============= ============= ============= =============
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