-----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, Uv+gnKE9lc85arlp5bNU8ItoZRTJuMXgSByJZFqI8ldZz8I0hUUCGJxHxaqmLfY4 Rph6cjGsHpUGsktXgUCimg== 0001019056-08-000055.txt : 20080110 0001019056-08-000055.hdr.sgml : 20080110 20080110172043 ACCESSION NUMBER: 0001019056-08-000055 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080110 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080110 DATE AS OF CHANGE: 20080110 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: 001-33250 FILM NUMBER: 08524325 BUSINESS ADDRESS: STREET 1: 4142 HYLAN BOULEVARD CITY: STATEN ISLAND STATE: NY ZIP: 10308 BUSINESS PHONE: 7189791100 MAIL ADDRESS: STREET 1: 4142 HYLAN BOULEVARD CITY: STATEN ISLAND STATE: NY ZIP: 10308 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 10, 2008 VSB Bancorp, Inc. ------------------------------------------------------ (Exact Name of Registrant as specified in its charter) New York 0-50237 11-3680128 - -------------------------------------------------------------------------------- (State or other jurisdiction Commission IRS Employer of incorporation) File Number Identification No. 4142 Hylan Boulevard, Staten Island, New York 10308 -------------------------------------------------------- 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 10, 2008, VSB Bancorp, Inc. (the "Company") reported its results of operations for the quarter ended December 31, 2007 of $453,155 or diluted earnings per share of $0.24 and for the year ended December 31, 2007 of $1,987,226 or diluted earnings per share of $1.06. The Company's return on average assets and average equity were 0.86% and 8.80%, respectively, for the quarter ended December 31, 2007. This information and the accompanying press release were disseminated on January 10, 2008 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 10, 2008 of VSB Bancorp, Inc. describing the results of operations for the quarter and year ended December 31, 2007 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 10, 2008 VSB Bancorp, Inc. By: /s/ Raffaele M. Branca --------------------------------- Raffaele M. Branca President and CEO INDEX TO EXHIBITS Exhibit No. Description 99.1 Press Release reporting results of operations for the quarter and year ended December 31, 2007. EX-99.1 2 ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 VSB Bancorp, Inc. Fourth Quarter 2007 Results of Operations Contact Name: Ralph M. Branca President & CEO (718) 979-1100 Staten Island, N. Y. --January 10, 2008. VSB Bancorp, Inc. (NASDAQ CM: VSBN) reported net income of $453,155 for the fourth quarter of 2007, a $270,628, or 37.4%, decrease from net income of $723,783 in the fourth quarter of 2006. The following unaudited figures were released today. Pre-tax income was $848,669 in the fourth quarter of 2007, as compared to $1,354,833 for the fourth quarter of 2006, a decrease of $506,164, or 37.4%. Basic net income per common share was $0.25, as compared to basic net income per common share of $0.40 for the quarter ended December 31, 2006. Three unusual items represented $111,400 of the difference in pre-tax net income. The December 2006 quarter pre-tax income was benefited by a $65,000 credit to the provision for loan losses, which was the most significant of these items. The $270,628 decrease in net income was attributable to a decrease in interest income of $334,217 and a decrease in interest expense of $44,657, which combined to cause a $289,560 decrease in net interest income. The decrease in interest income was due to a decrease of $277,099 in interest on loans as the average balance of loans decreased by $4.0 million and the average yield decreased by 105 basis points from the fourth quarter of 2006. Interest income from money market investments declined by $107,747 as yields and average balances decreased over the same period. The decrease in interest income from loans was partially offset by $50,629 increase in interest from investment securities due primarily to a 19 basis point increase in yield. The Company also had an increase in the provision for loan losses of $105,000 and an increase in non-interest expense of $136,589. The decrease in net interest income was partially offset by an increase in non-interest income of $24,985, to $557,199, and a decrease in income tax expense of $235,536. The decrease in interest expense was primarily caused by an $80,338 decrease in the cost of time deposits, partially offset by an increase of $30,039 in the cost of money market deposit accounts. The average rate that the Company paid on money market deposits increased by 16 basis points and average money market deposits increased by $4.4 million since the fourth quarter of 2006. The average balance of time deposits decreased $7.0 million over the same period while the average rate paid on time deposits decreased by 10 basis points. The $136,589 increase in non-interest expense was directly attributable to an increase in occupancy expenses of $34,164, due to the operation of a new main office at 4142 Hylan Boulevard in Great Kills and the operation of the Rosebank branch, an increase in legal expenses of $25,816, an increase in professional fees of $29,200, and an increase in other expenses of $57,514 representing increased costs associated with implementing real time on line processing for existing ATM products, debit cards and online bill pay. Total assets decreased to $203.7 million at December 31, 2007, a decrease of $8.2 million, or 3.9%, from December 31, 2006. Total deposits, including escrow deposits, decreased to $176.3 million, a decrease of $10.3 million, or 5.5%, during the year ended 2007. The Bancorp's Tier 1 capital ratio of 12.60% includes the effect, as Tier 1 capital, of $5.0 million from the proceeds of a $5 million trust preferred securities issuance in August 2003. Average interest-earning assets and average loans decreased by $10.6 million and $4.0 million, respectively, from the fourth quarter of 2006 to the fourth quarter of 2007. Average demand deposits, an interest free source of funds for the Bancorp to invest, were approximately 35% of average total deposits for the fourth quarter of 2007, compared to 36% for the fourth quarter of 2006. Average deposits decreased by $13.6 million from the fourth quarter of 2006 to the fourth quarter of 2007. The Company's interest rate spread and interest rate margin were 3.36% and 4.36%, respectively, for the quarter ending December 31, 2007 as compared to 3.68% and 4.67%, respectively, for the quarter ended December 31, 2006. Pre-tax income decreased to $3,720,737 for the year ended of 2007, as compared to $4,765,867 for 2006, a decrease of $1.0 million, or 21.9%. Net income for the year ended December 31, 2007 was $1,987,226, or basic net income of $1.09 per common share, as compared to net income of $2,545,593, or $1.40 per common share, for the year ended December 31, 2006. The principal cause of the $558,367 reduction in net income for the year ended December 31, 2007 was a $795,599 year to year decline in interest income, primarily because the average loan volume declined by $8.6 million and the average loan yield declined by 23 basis points. Although a $2.0 million decrease in the average balance of investment securities also contributed to the decline in net income, this was partially offset by a 17 basis point increase in the yield on those securities as well as a $1.5 million increase in other earning assets and an 8 basis point increase in the average yield on those other assets. In addition, the Company experienced a $256,240 increase in interest expense due to higher average deposit costs, as the average rates paid increased 24 basis points on money market deposits, 18 basis points on NOW accounts and 40 basis points on time deposits. Also contributing to the decrease in net income was an increase in the provision for loan loss of $60,000 and an increase of $165,525 in non-interest expenses, which were partially offset by an increase in non-interest income of $232,234, due primarily to the increase in deposit service charges. Income tax expense also decreased $486,763 between the periods as pre-tax income decreased. Raffaele (Ralph) M. Branca, VSB Bancorp, Inc.'s President and CEO, stated, "The slow real estate market and the local economic downturn have hampered our earnings, including a reduction in our loan production. While we have no exposure to subprime mortgages, we are still affected by the repercussions to the home building industry on Staten Island, as it is the major industry on the Island. Our fourth quarter interest rate margin continues to remain strong compared to our peer group." Joseph J. LiBassi, VSB Bancorp, Inc.'s Chairman, stated "In 2007, our earnings were $2.0 million and our book value per share rose to $10.96 at December 31, 2007, up $1.58 from the book value per share one year earlier. We deliver the highest personal customer service and our reputation as the "Bank that fits your business" allows for more opportunities in the future. We are also pleased that during the fourth quarter of 2007, we declared our first quarterly cash dividend of $0.06 per share which, was paid on January 2, 2008." VSB Bancorp, Inc. is the one-bank holding company for Victory State Bank. Victory State Bank, a Staten Island based commercial bank, which 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 $20.8 million, primarily through the retention of earnings. The Bank operates five full service locations in Staten Island: the main office in Great Kills, and branches on Forest Avenue (West Brighton), Hyatt Street (St. George), Hylan Boulevard (Dongan Hills) and on Bay Street (Rosebank). In February 2007, we opened our new main office 4142 Hylan Boulevard in the Great Kills section of Staten Island. We simultaneously closed our former main office in the Oakwood Heights Shopping Center as the lease expired at that location. 2 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. 3
VSB Bancorp, Inc. Consolidated Statements of Financial Condition December 31, 2007 (unaudited) December 31, December 31, 2007 2006 ------------- ------------- Assets: Cash and cash equivalents $ 17,696,879 $ 25,363,069 Investment securities, available for sale 117,814,117 113,770,611 Loans receivable 62,373,078 66,410,677 Allowance for loan loss (927,161) (1,128,824) ------------- ------------- Loans receivable, net 61,445,917 65,281,853 Bank premises and equipment, net 3,931,679 1,554,363 Accrued interest receivable 799,249 805,681 Deferred taxes 991,297 2,030,647 Other assets 1,054,431 3,078,535 ------------- ------------- Total assets $ 203,733,569 $ 211,884,759 ============= ============= Liabilities and stockholders' equity: Liabilities: Deposits: Demand and checking $ 62,525,053 $ 67,371,582 NOW 16,931,113 19,935,769 Money market 20,534,721 18,359,007 Savings 11,349,111 12,526,485 Time 64,738,564 68,229,244 ------------- ------------- Total Deposits 176,078,562 186,422,087 Escrow deposits 255,881 261,063 Subordinated debt 5,155,000 5,155,000 Accounts payable and accrued expenses 1,420,321 2,306,312 ------------- ------------- Total liabilities 182,909,764 194,144,462 ------------- ------------- Employee Stock Ownership Plan Repurchase Obligation -- 399,026 Stockholders' equity: Common stock, ($.0001 par value, 3,000,000 shares authorized, 1,900,509 issued and outstanding at December 31, 2007 and 1,891,759 issued and outstanding at December 31, 2006) 190 189 Additional paid in capital 9,107,119 8,667,665 Retained earnings 13,166,395 11,293,200 Unearned ESOP shares (1,070,827) (1,239,905) Accumulated other comprehensive loss, net of taxes of $330,668 and $1,203,679, respectively (379,072) (1,379,878) ------------- ------------- Total stockholders' equity 20,823,805 17,341,271 ------------- ------------- Total liabilities and stockholders' equity $ 203,733,569 $ 211,884,759 ============= =============
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VSB Bancorp, Inc. Consolidated Statements of Operations December 31, 2007 (unaudited) Three months Three months Year ended Year ended ended ended ended ended December 31, 2007 December 31, 2006 December 31, 2007 December 31, 2006 ----------------- ----------------- ----------------- ----------------- Interest and dividend income: Loans receivable $ 1,406,313 $ 1,683,412 $ 5,980,133 $ 6,985,200 Investment securities 1,389,200 1,338,571 5,303,886 5,201,089 Other interest earning assets 185,240 292,987 994,334 887,663 ----------------- ----------------- ----------------- ----------------- Total interest income 2,980,753 3,314,970 12,278,353 13,073,952 Interest expense: NOW 34,945 30,461 131,634 107,973 Money market 118,086 88,047 439,236 352,956 Savings 23,586 22,428 97,900 85,413 Subordinated debt 89,040 89,040 356,159 356,159 Other interest expense -- -- -- 1,112 Time 573,703 654,041 2,436,688 2,301,764 ----------------- ----------------- ----------------- ----------------- Total interest expense 839,360 884,017 3,461,617 3,205,377 Net interest income 2,141,393 2,430,953 8,816,736 9,868,575 Provision (benefit) for loan loss 40,000 (65,000) (5,000) (65,000) ----------------- ----------------- ----------------- ----------------- Net interest income after provision for loan loss 2,101,393 2,495,953 8,821,736 9,933,575 Non-interest income: Loan fees 20,945 19,754 84,603 77,027 Service charges on deposits 475,277 441,683 1,794,699 1,585,127 Net rental income / (loss) (14,172) 9,138 (15,048) 16,970 Other income 75,149 61,639 309,138 262,034 ----------------- ----------------- ----------------- ----------------- Total non-interest income 557,199 532,214 2,173,392 1,941,158 Non-interest expenses: Salaries and benefits 908,733 909,538 3,800,954 3,820,566 Occupancy expenses 321,614 287,450 1,353,636 1,101,824 Legal expense 51,570 25,754 102,320 305,333 Professional fees 54,200 25,000 207,200 161,000 Computer expense 56,906 67,356 258,881 259,592 Director fees 55,700 54,550 216,150 221,950 Other expenses 361,200 303,686 1,335,250 1,238,601 ----------------- ----------------- ----------------- ----------------- Total non-interest expenses 1,809,923 1,673,334 7,274,391 7,108,866 Income before income taxes 848,669 1,354,833 3,720,737 4,765,867 ----------------- ----------------- ----------------- ----------------- Provision for income taxes: Current 363,719 556,412 1,593,554 2,101,161 Deferred 31,795 74,638 139,957 119,113 ----------------- ----------------- ----------------- ----------------- Total provision for income taxes 395,514 631,050 1,733,511 2,220,274 Net income $ 453,155 $ 723,783 $ 1,987,226 $ 2,545,593 ================= ================= ================= ================= Basic income per common share $ 0.25 $ 0.40 $ 1.09 $ 1.40 ================= ================= ================= ================= Diluted net income per share $ 0.24 $ 0.38 $ 1.06 $ 1.36 ================= ================= ================= ================= Book value per common share $ 10.96 $ 9.38 $ 10.96 $ 9.38 ================= ================= ================= =================
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