BEL AIR, Md., March 30 /PRNewswire-FirstCall/ -- SFSB, INC. (BULLETIN BOARD: SFBI) today reported net income for the quarter ended December 31, 2006 of $68,000 or $.02 diluted earnings per share as compared to net income of $27,000 for the quarter ended December 31, 2005. The increase in earnings was primarily due to a $221,000 increase in interest income, a $40,000 increase in non-interest income and a $230,000 decrease in non- interest expense for the three months ended December 31, 2006 as compared to the three months ended December 31, 2005. These were offset by a $413,000 increase in interest expense, a $23,000 increase in provision for loan losses and a $14,000 increase in the income tax provision. The increase of net income for the fourth quarter is primarily due to an increase in non-interest income associated with the gain on sale of our residential loan originations.
For the twelve months ended December 31, 2006, earnings declined to $18,000 or $.01 diluted earnings per share as compared to $239,000 for the twelve months ended December 31, 2005. We incurred $101,000 in expenses due to the acceleration of depreciation on the leasehold improvements in connection with the closing of our Edgewood branch in the first quarter of 2006 and we increased our allowance for loan losses by $260,000 or 100% of the loan balance of two commercial non-real estate loans that were classified as impaired in the third quarter of 2006.
At December 31, 2006, SFSB, Inc., had total assets of $174.2 million, compared to $171.1 million at December 31, 2005. At December 31, 2006, stockholders' equity amounted to $22.4 million compared to $22.8 million at December 31, 2005. This decrease was primarily the result of the purchase of $665,000 in additional Treasury stock. The decrease in equity also reflects a $10,000 increase in accumulated other comprehensive loss (resulting from unrealized losses on investments available for sale, net of tax), partially offset by net income of $18,000 and stock based compensation of $217,000.
SFSB, Inc., headquartered in Bel Air, Maryland is the holding company of Slavie Federal Savings Bank. The bank is a 106 year old federally chartered, FDIC-insured thrift serving the Baltimore Metropolitan area and surrounding counties in Maryland. The bank offers a wide variety of financial services and products throughout its market area. The bank maintains a website at http://www.slavie.com/.
SFSB, INC.
AUDITED CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31 December 31
2006 2005 2006 2005
Interest income $2,334 $2,113 $9,091 $7,720
Interest expense 1,539 1,126 5,467 3,795
Net interest income 795 987 3,624 3,925
Provision for loan losses 36 13 376 58
Net interest income after
provision for loan losses 759 974 3,248 3,867
Non-interest income 102 62 277 234
Non-interest expenses 749 979 3,482 3,700
Income before income tax provision 112 57 43 401
Income tax provision 44 30 25 162
Net income $68 $27 $18 $239
Basic earnings per share .02 .01 .01 .08
Diluted earnings per share .02 .01 .01 .08
SFSB, INC
AUDITED SELECTED FINANCIAL DATA
(In thousands)
December 31 December 31
2006 2005
Total assets $174,225 $171,067
Cash and cash equivalents 2,851 1,342
Investment securities 12,526 12,151
Loans receivable-net 147,118 144,609
Deposits 111,823 109,623
Total borrowings 39,000 36,000
Total stockholders' equity 22,365 22,805
