VSB Bancorp, Inc. Fourth Quarter 2017 Results of Operations
Jan 12, 2018
OTC Disclosure News Service
STATEN ISLAND, NY / ACCESSWIRE / Jan 12, 2018 / VSB Bancorp, Inc. (OTCQX: VSBN) reported net income of $321,536 for a fourth entertain of 2017, a diminution of $261,723, or 44.9%, from a fourth entertain of 2016. The rebate in net income was a directly attributable to a approval of $463,933 in deferred taxation responsibility in a fourth entertain of 2017. The following unaudited sum were expelled today. Pre-tax income was $1,208,644 in a fourth entertain of 2017, compared to $897,380 for a fourth entertain of 2016. Net income for a entertain was $321,536, or simple income of $0.18 per common share, compared to net income of $583,259, or $0.33 simple net income per common share, for a entertain finished Dec 31, 2016. Return on normal resources decreased from 0.67% in a fourth entertain of 2016 to 0.28% in a fourth entertain of 2017, while lapse on normal equity decreased from 7.48% to 3.03%.
The $261,723 diminution in net income was due to an boost in income taxation responsibility of $572,987, due predominantly to a sovereign taxation rate rebate and an boost in pre-tax income. The recently enacted sovereign taxation law (“The Tax Cuts and Jobs Act of 2017”) forsaken a corporate taxation rate to 21% from 35% for 2018. This resulted in a revaluation of a deferred taxation asset, as it had to be recalculated during a reduce sovereign taxation rate of 21% in 2017, a year that a sovereign taxation law was enacted. Non-interest losses increasing by $164,223. The diminution in net income was partially equivalent by an boost in net seductiveness income of $431,428 and a diminution in a sustenance for loan detriment of $40,000. We did not record a sustenance for loan detriment in a fourth entertain as we recovered over $160,000 in 2017 on 3 loans that were formerly charged off.
The $431,428 boost in net seductiveness income for a fourth entertain of 2017 occurred essentially since a seductiveness income increasing by $430,186 and a cost of supports decreased $1,242 in a same period. The arise in seductiveness income resulted from a $202,845 boost in income from loans as we had an $8.2 million boost in normal loan change between a periods, and a 12 basement indicate boost in produce between a periods, as we requisitioned new loans during somewhat aloft rates. The normal change of loans increasing by 6.6% as we continued to exercise a plan to boost a loan portfolio, that helped urge a earnings. Income from investment bonds increasing by $192,060, due to an boost of $25.7 million in normal investment bonds and a 6 basement indicate boost in produce between a periods.
Interest income from other seductiveness earning resources (principally overnight investments) increasing by $35,281 due to a 74 basement indicate boost in a normal produce partially equivalent by a $12.7 million diminution in a normal balance. This normal produce boost corresponded to a Federal Reserve’s boost in a aim sovereign supports rate between a periods. Overall, normal interest-earning resources increasing by $21.2 million from a fourth entertain of 2016 to a fourth entertain of 2017.
The medium diminution in seductiveness responsibility was predominantly due to a $10,566 diminution in seductiveness on time accounts, as a normal cost decreased by 3 basement points and a normal change between durations decreased by $4.8 million and a $3,581 diminution in seductiveness on income marketplace accounts, as a normal cost decreased by 1 basement indicate and a normal change between durations decreased by $1.38 million. These decreases were partially equivalent by an $11,950 boost in a cost of NOW accounts, due to a 5 basement indicate boost in normal cost and a $10.1 million boost in a normal balance. Our altogether normal cost of interest-bearing liabilities decreased by 2 basement points. We expect that new increases in a sovereign supports rate might outcome in an ceiling vigour on deposition rates in a foreseeable future.
Average direct deposits, an seductiveness giveaway source of supports for us to invest, increasing $11.5 million from a fourth entertain of 2016 and represented approximately 43% of normal sum deposits for a fourth entertain of 2017. Average interest-bearing deposits increasing by $5.8 million, ensuing in an altogether $17.4 million boost in normal sum deposits from a fourth entertain of 2016 to a fourth entertain of 2017.
The normal produce on earning resources rose by 23 basement points while a normal cost of supports fell by 2 basement points. The boost in a produce on resources was predominantly due to increases in a normal change of loans by 6.6% and a 12 basement indicate boost in loan yield, a normal change of investment bonds by 15.7% and a produce on other seductiveness earning resources by 74 basement points. Our seductiveness rate domain increasing by 24 basement points from 3.04% to 3.28% when comparing a fourth entertain of 2017 to a same entertain in 2016, while a seductiveness rate widespread increasing by 25 basement points from 2.81% to 3.06% in a same period. The domain increasing since of a multiple of factors. Our normal loan change increasing by $8.2 million and a normal investment bonds change increasing by $25.7 million. We continue to have an boost in gain from resources saved by non-interest temperament direct deposits and capital. However, while a stream cost of deposits has not risen, additional increases in a sovereign supports rate after this year might boost foe for deposits, as some-more banks lift their seductiveness rates to attract new deposits, and might obligate an boost in destiny deposition rates.
Non-interest income increasing somewhat by $4,059 to $659,629 in a fourth entertain of 2017, compared to $655,570 in a same entertain in 2016. The boost was especially a outcome of $35,912 boost in net let income due to a early stop of a sublease, a $26,779 boost in loan fees due to increasing prepayments on certain loans, partially equivalent by a $41,372 rebate in use charges on deposits, that embody especially of fees on equipment being presented for remuneration opposite deficient funds, that are inherently volatile.
Comparing a fourth entertain of 2017 with a same entertain in 2016, non-interest responsibility increasing by $164,223, totaling $2.4 million for a fourth entertain of 2017. Non-interest responsibility increasing for several business reasons including: (i) $66,411 boost in other losses due to ongoing lawsuit matters; (ii) a $44,756 boost in occupancy losses due to a let responsibility compared with a designed new branch; (iii) a $15,838 boost in authorised fees due to aloft lawsuit and collection costs; (iv) a $18,970 boost in veteran fees due predominantly to recruitment fees; and (v) a $9,667 boost in income and advantage costs.
Total resources increasing to $349.8 million during Dec 31, 2017, an boost of $16.7 million, or 5.01%, from Dec 31, 2016. The largest components of this boost were a $30.4 million boost in investment securities, as we redeployed cash, and an $11.0 million boost in loans, partially equivalent by a $24.3 million diminution in income and other glass assets. Our non-performing loans decreased from $1.8 million during Dec 31, 2016 to $593,000 during Dec 31, 2017, due essentially to a boon of $1.3 million in non-performing loans in 2017. Total OREO stood during $43,000 during Dec 31, 2017. Total deposits, including escrow deposits, increasing to $315.6 million, an boost of $14.7 million, or 4.9% during 2017. The boost was essentially attributable to increases of $11.6 million in NOW accounts, $7.7 million in direct and checking deposits, and $940,961 in saving accounts, partially equivalent by a $4.8 million diminution in time deposits and $750,523 diminution in income marketplace accounts.
Our sum stockholders’ equity increasing by $2.0 million, predominantly due to $2.0 million in defended earnings, $321,103 in additional paid in capital, and $100,125 of amortization of a ESOP loan, partially equivalent by an boost in amassed other extensive detriment of $249,621 and increasing book shares of $96,525. VSB Bancorp’s Tier 1 collateral ratio was 9.12% during Dec 31, 2017. Book value per common share increasing from $16.72 during year finish 2016 to $17.82 during Dec 31, 2017.
For a year finale 2017, pre-tax income increasing to $4.6 million from $3.5 million for a year finale 2016, an alleviation of $1.2 million, or 33.8%. Net income for a year finished Dec 31, 2017 was $2.6 million, or simple net income of $1.44 per common share, as compared to net income of $2.3 million, or simple net income of $1.29 per common share, for a year finished Dec 31, 2016. The boost in net income for a year finished Dec 31, 2017 compared to a same duration in 2016 was attributable predominantly to a $1.6 million boost in net seductiveness income (due to aloft normal loan balances in 2017 and $331,219 of non-recurring income representing a receipt of seductiveness on a loan formerly charged off and prepayment penalties collected on mortgage-backed securities), and a $250,000 rebate in a sustenance for loan loss. These increases were partially equivalent by an $874,982 boost in a sustenance for income taxes ($463,933 representing a boost in deferred sovereign taxation responsibility ensuing from a 2017 dramatization of a new taxation law), a $569,110 boost in non-interest losses and a $114,693 diminution in other income.
The boost in non-interest responsibility of $569,110 was due essentially to (i) a $231,410 boost in income and advantage costs due to a acceleration of batch choice losses as a outcome of a executive resignation, separation paid to vacating employees and a aloft turn of staff; (ii) a $119,248 boost in authorised losses due to an boost in collection and litigation; (iii) a $117,773 boost in veteran fees since we hired a new tellurian apparatus manager and a business expansion officer by a recruitment agency, and we defended a third celebration to examination some of a bank privacy act correspondence systems; and (iv) a $81,346 boost in occupancy losses due predominantly to a remuneration of prejudiced lease on a designed new branch. The net seductiveness domain increasing by 20 basement points to 3.29% for a year finished Dec 31, 2017 from 3.09% in a same duration in 2016, essentially due to a sum outcome of a receipt of $326,765 in non-recurring seductiveness income from loans and investment bonds in a second entertain of 2017, and an boost in a normal change of a loans by 12%. Without a outcome of a non-recurring income, a net seductiveness domain would have increasing by 10 basement points. Average seductiveness earning resources for a year finished Dec 31, 2017 increasing by $30.0 million, or 9.4%, from a same duration in 2016.
Raffaele (Ralph) M. Branca, VSB Bancorp, Inc.’s President and CEO, stated, “Our net income in 2017 was adversely influenced by a approval of additional deferred sovereign taxation responsibility ensuing from a new sovereign taxation law. This should almost retreat in 2018 as a sovereign stream taxation responsibility will be distributed during a reduce rate of 21%.” Joseph J. LiBassi, VSB Bancorp, Inc.’s Chairman, stated, “Although a expansion of a net income was compelled in 2017, pre-tax income showed a 34% boost over 2016. We paid a forty-first uninterrupted income dividend, increasing a quarterly income division to $0.10 per share and a book value per share has climbed to $17.82. We sojourn committed to delivering a best in personal use to a customers.”
VSB Bancorp, Inc. is a one-bank holding association for Victory State Bank. Victory State Bank, a Staten Island-based blurb bank, that commenced operations on Nov 17, 1997. The Bank’s initial capitalization of $7.0 million was essentially lifted in a Staten Island community. The Bancorp’s sum equity has increasing to $32.6 million essentially by a influence of earnings. The Bank operates 5 full use locations in Staten Island: a categorical bureau in Great Kills, and branches on Forest Avenue (West Brighton), Hyatt Street (St. George), Hylan Boulevard (Dongan Hills) and on Bay Street (Rosebank). We are formulation to open a sixth bend in Meiers Corners territory of Staten Island, in 2018, as we have perceived both regulatory and building dialect approvals.
This recover contains forward-looking statements that are theme to risks and uncertainties. Such risks and uncertainties might embody though are not indispensably singular to inauspicious changes in local, informal or inhabitant mercantile conditions, fluctuations in marketplace seductiveness rates, changes in laws or supervision regulations, weaknesses of other financial institutions, changes in patron preferences, and changes in foe within a marketplace area. When used in this recover or in any other created or verbal statements by a Company or a directors, officers or employees, difference or phrases such as “will outcome in,” “management expects that,” “will continue,” “is anticipated,” “estimate,” “projected,” or identical expressions, and other terms used to report destiny events, are dictated to brand “forward-looking statements” within a definition of a Private Securities Litigation Reform Act of 1995 (“PSLRA”). Readers should not place undue faith on a forward-looking statements, that simulate management’s perspective usually as of a date of a statement. The Company undertakes no requirement to publicly correct these forward-looking statements to simulate successive events or circumstances. This matter is enclosed for a demonstrate purpose of safeguarding a Company underneath a PSLRA’s protected bay provisions.
Ralph M. Branca
VSB Bancorp, Inc. Consolidated Statements of Financial Condition December 31, 2017 (unaudited) $ 12,920,547 $ 37,240,361 46,080,113 42,588,960 145,853,876 118,979,809 137,180,384 126,196,441 (1,564,698)
135,615,686 124,821,874 1,086,569 1,418,054 888,936 756,277 5,433,064 5,316,199 1,884,885 1,951,425 $ 349,763,676 $ 333,072,959 $ 131,300,711 $ 123,572,468 53,070,471 41,489,564 54,894,238 55,644,761 23,715,892 22,774,931 52,297,151 57,146,886 315,278,463 300,628,610 281,505 244,784 1,603,368 1,627,210 317,163,336 302,500,604 209 209 10,590,557 10,269,454 25,722,467 23,769,564 (2,813,653)
32,600,340 30,572,355 $ 349,763,676 $ 333,072,959
VSB Bancorp, Inc. Consolidated Statements of Operations December 31, 2017 (unaudited) $ 2,057,153 $ 1,854,308 $ 8,047,482 $ 7,146,195 1,030,204 838,144 3,901,097 3,479,511 93,234 57,953 440,835 164,910 3,180,591 2,750,405 12,389,414 10,790,616 35,741 23,791 125,183 79,190 109,388 112,969 446,973 468,283 13,087 12,160 53,505 47,930 72,141 82,679 299,372 338,649 230,357 231,599 925,033 934,052 2,950,234 2,518,806 11,464,381 9,856,564 – 40,000 15,000 265,000 2,950,234 2,478,806 11,449,381 9,591,564 72,503 45,724 232,633 106,600 463,512 504,884 1,920,788 2,030,673 48,578 12,666 93,367 63,807 75,036 92,296 329,264 489,665 659,629 655,570 2,576,052 2,690,745 1,177,589 1,167,922 4,830,687 4,599,277 369,097 324,341 1,413,896 1,332,550 73,503 57,665 312,728 193,480 115,100 96,130 483,346 365,573 110,643 108,463 422,171 405,250 60,276 62,875 240,001 246,575 51,000 42,000 182,000 188,000 444,011 377,600 1,490,967 1,475,981 2,401,219 2,236,996 9,375,796 8,806,686 1,208,644 897,380 4,649,637 3,475,623 434,217 362,229 1,692,790 1,417,782 452,891 (48,108)
887,108 314,121 2,091,515 1,216,533 $ 321,536 $ 583,259 $ 2,558,122 $ 2,259,090 $ 0.18 $ 0.33 $ 1.44 $ 1.29 $ 0.18 $ 0.33 $ 1.43 $ 1.28 $ 17.82 $ 16.72 $ 17.82 $ 16.72
SOURCE: VSB Bancorp, Inc.
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