-----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, NGlxD8jM4goHqxYXfd5YDnicORfQnD4bqQpYN7+wvao2rkiwwc68GO4WPGH9kaaB PN2ohY50E4gPeL4/aFPA6g== 0001019056-06-000043.txt : 20060112 0001019056-06-000043.hdr.sgml : 20060112 20060112120454 ACCESSION NUMBER: 0001019056-06-000043 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060111 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060112 DATE AS OF CHANGE: 20060112 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: 06526442 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): January 11, 2006 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 of incorporation) Number Identification 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) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 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 January 11, 2006, VSB Bancorp, Inc. (the "Company") reported its results of operations for the quarter ended December 31, 2005 of $645,602 or diluted earnings per share of $0.43 and for the year ended December 31, 2005 of $2,567,429 or diluted earnings per share of $1.73. The Company's return on average assets and average equity was 1.15% and 17.68%, respectively, for the quarter ended December 31, 2005. All share data has been adjusted for the Bancorp's four-for-three stock split paid on March 9, 2004. This information and the accompanying press release were disseminated on January 11, 2006 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 January 11, 2006 of VSB Bancorp, Inc. describing the results of operations for the quarter and the year ended December 31, 2005 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: January 11, 2006 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 year ended December 31, 2005. 2 EX-99.1 2 ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 VSB Bancorp, Inc. Fourth Quarter 2005 Results of Operations Year End Income Up 12.9% Contact Name: Ralph M. Branca Executive Vice President (718) 979-1100 Staten Island, N. Y. -- January 11, 2006. VSB Bancorp, Inc. (NASDAQ OTCBB: VSBN) reported quarterly net income of $645,602 for the fourth quarter of 2005, a 3.3% decrease from the fourth quarter of 2004. The following unaudited figures were released today. Pre-tax income was $1,208,360 in the fourth quarter of 2005 as compared to $1,248,801 for the fourth quarter of 2004, a decrease of $40,441, or 3.2%. Net income was $645,602, or basic income of $0.45 per common share, as compared to a net income of $667,259, or $0.47 basic income per common share, for the quarter ended December 31, 2004. The $21,657 decrease in net income was a result of an increase in non-interest expense of $36,329, a decrease in non-interest income of $26,719 and an increase in the provision for loan loss of $10,000, which were partially offset by an increase in net interest income of $32,607 and a decrease in income tax expense of $18,784. Total assets were $215.8 million at December 31, 2005, a decrease of $19.9 million, or 8.5%, from December 31, 2004. Total deposits were $193.3 million at December 31, 2005, a decrease of $22.2 million, or 10.3%, during the year ending 2005. The Bancorp's Tier 1 capital ratio of 9.40% includes, as Tier 1 capital, $5.0 million (25% of its Tier 1 capital) from the proceeds of a $5 million trust preferred securities issuance in August 2003. Average interest-earning assets and average investment securities were reduced by $3.8 million and $9.8 million, respectively, from the fourth quarter of 2004 to the fourth quarter of 2005. Average demand deposits, an interest free source of funds for the Bancorp to invest, were approximately 36% of average total deposits for the fourth quarter of 2005, compared to 44% for the fourth quarter of 2004. Average time deposits grew by $13.0 million from the fourth quarter of 2004. The Company's interest rate spread and interest rate margin were 3.94% and 4.61%, respectively, for the quarter ending December 31, 2005 as compared to 3.93% and 4.43%, respectively, for the quarter ended December 31, 2004. Non-interest income decreased $26,719, to $468,367, in the fourth quarter of 2005. Non-interest expense totaled $1.7 million, an increase of $36,329 from the fourth quarter of 2004. The growth in non-interest expense is directly attributable to, increases in health insurance costs and legal fees, an increase in other expenses due to increased costs of services. The legal fee increase involves legal matters in which the Company's subsidiary is either a garnishee or holder of extensive subpoenaed records. Pre-tax income grew to $4,806,903 for the year ended of 2005, as compared to $4,257,982 for 2004, an increase of $548,921, or 12.9%. Net income for the year ended December 31, 2005 was $2,567,429, or basic income of $1.78 per common share, as compared to a net income of $2,274,578, or basic income of $1.60 per common share, for the year ended December 31, 2004. The $292,851 growth in net income was 3 attributable to an increase in net interest income of $790,809, a decrease in the provision for loan loss of $210,000, and an increase in non-interest income of $214,319, partially offset by an increase in non-interest expense of $666,207. Income tax expense also increased $256,070 between the periods as pre-tax income increased. Merton Corn, President and CEO of VSB Bancorp, Inc., stated, "Year end earnings were up over 12% from 2004, another strong year for our Company. The current interest rate environment and the softening of the real estate market will pose some challenges for us in the coming year. The branch application for our sixth branch site in Great Kills has been approved and construction has begun." Mr. Joseph J. LiBassi, VSB Bancorp, Inc.'s Chairman stated "Our earnings per share were $0.45 for the fourth quarter of 2005, our Return on Assets was 1.15% and our Return on Equity was 17.68% for this quarter. We look forward to opening our fifth branch at 1065 Bay Street and our next branch in Great Kills. Increasing our branches is another way of enhancing our position as the Island's premier business bank." 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 $14.5 million since the Bank was formed. 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. We received regulatory approval to open our fifth branch at 1065 Bay Street, in the Rosebank section of Staten Island and for our sixth branch location in the Great Kills section of Staten Island. FORWARD LOOKING STATEMENTS This release contains forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to adverse changes in local, regional or national economic conditions, fluctuations in market interest rates, changes in laws or government regulations, changes in customer preferences, and changes in competition within our market area. When used in this release or in any other written or oral statements by the Company or its directors, officers or employees, words or phrases such as "will result in," "management expects that," "will continue," "is anticipated," "estimate," "projected," or similar expressions, and other terms used to describe future events, are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date of the statement. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. This statement is included for the express purpose of protecting the Company under the PSLRA's safe harbor provisions. 4 VSB Bancorp, Inc. Consolidated Statements of Financial Condition December 31, 2005 (unaudited)
December 31, December 31, 2005 2004 ------------- ------------- Assets: Cash and cash equivalents $ 31,324,147 $ 35,659,073 Investment securities, available for sale 106,023,293 128,532,767 Loans receivable 73,944,105 68,046,885 Allowance for loan loss (1,153,298) (1,299,520) ------------- ------------- Loans receivable, net 72,790,807 66,747,365 Bank premises and equipment, net 1,441,087 1,817,284 Accrued interest receivable 728,627 745,368 Deferred taxes 2,298,195 1,462,940 Other assets 1,169,556 719,670 ------------- ------------- Total assets $ 215,775,712 $ 235,684,467 ============= ============= Liabilities and stockholders' equity: Liabilities: Deposits: Demand and checking $ 66,692,436 $ 101,560,932 NOW 23,574,056 21,574,053 Money market 20,177,240 23,388,850 Savings 14,809,010 14,159,026 Time 67,731,273 54,470,507 ------------- ------------- Total Deposits 192,984,015 215,153,368 Escrow deposits 267,144 270,105 Subordinated debt 5,155,000 5,155,000 Accounts payable and accrued expenses 2,553,208 2,149,548 ------------- ------------- Total liabilities 200,959,367 222,728,021 ------------- ------------- Employee Stock Ownership Plan Repurchase Obligation 284,938 126,825 Stockholders' equity: Common stock, ($.0001 par value, 3,000,000 shares authorized, 1,509,822 issued and outstanding at Dec. 31, 2005 and 1,505,022 issued and outstanding at December 31, 2004) 151 150 Additional paid in capital 8,742,673 8,818,313 Retained earnings 8,621,693 6,054,264 Unallocated ESOP shares (1,408,983) (1,578,061) Accumulated other comprehensive loss, net of taxes of $1,242,278 and $405,662, respectively (1,424,127) (465,045) ------------- ------------- Total stockholders' equity 14,531,407 12,829,621 ------------- ------------- Total liabilities and stockholders' equity $ 215,775,712 $ 235,684,467 ============= =============
5 VSB Bancorp, Inc. Consolidated Statements of Operations December 31, 2005 (unaudited)
Three months Three months Year Year ended ended ended ended Dec. 31, 2005 Dec. 31, 2004 Dec. 31, 2005 Dec. 31, 2004 ------------- ------------- ------------- ------------- Interest and dividend income: Loans receivable $ 1,634,396 $ 1,387,290 $ 5,828,338 $ 5,340,281 Investment securities 1,155,234 1,236,737 4,870,635 4,052,186 Other interest earning assets 269,223 126,478 585,512 279,758 ------------ ------------ ------------ ------------ Total interest income 3,058,853 2,750,505 11,284,485 9,672,225 Interest expense: NOW 26,269 24,773 104,620 100,941 Money market 68,138 49,200 229,906 195,269 Savings 19,838 18,040 79,073 63,130 Subordinated debt 89,040 89,040 356,159 356,159 Time 419,263 165,754 1,200,566 433,374 ------------ ------------ ------------ ------------ Total interest expense 622,548 346,807 1,970,324 1,148,873 Net interest income 2,436,305 2,403,698 9,314,161 8,523,352 Provision (benefit) for loan loss 30,000 20,000 (60,000) 150,000 ------------ ------------ ------------ ------------ Net interest income after provision for loan loss 2,406,305 2,383,698 9,374,161 8,373,352 Non-interest income: Loan fees 12,523 20,418 92,531 77,724 Service charges on deposits 390,419 445,534 1,685,198 1,709,787 Net rental income 7,229 4,219 177,963 27,812 Other income 58,196 24,915 161,948 87,998 ------------ ------------ ------------ ------------ Total non-interest income 468,367 495,086 2,117,640 1,903,321 Non-interest expenses: Salaries and benefits 948,404 935,393 3,780,485 3,418,905 Occupancy expenses 251,912 240,358 976,949 947,954 Legal expense 55,746 13,183 173,178 134,371 Professional fees 45,000 89,450 222,000 235,041 Computer expense 64,401 59,210 241,396 255,350 Other expenses 300,849 292,389 1,290,890 1,027,070 ------------ ------------ ------------ ------------ Total non-interest expenses 1,666,312 1,629,983 6,684,898 6,018,691 Income before income taxes 1,208,360 1,248,801 4,806,903 4,257,982 ------------ ------------ ------------ ------------ Provision (benefit) for income taxes: Current 573,274 670,408 2,238,114 2,253,972 Deferred (10,516) (88,866) 1,360 (270,568) ------------ ------------ ------------ ------------ Total provision for income taxes 562,758 581,542 2,239,474 1,983,404 Net income $ 645,602 $ 667,259 $ 2,567,429 $ 2,274,578 ============ ============ ============ ============ Basic income per common share $ 0.45 $ 0.47 $ 1.78 $ 1.60 ============ ============ ============ ============ Diluted net income per share $ 0.43 $ 0.45 $ 1.73 $ 1.54 ============ ============ ============ ============ Book value per common share $ 9.81 $ 8.61 $ 9.81 $ 8.61 ============ ============ ============ ============
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