BEL AIR, Md., April 1, 2008 /PRNewswire-FirstCall/ -- SFSB, INC. (BULLETIN BOARD: SFBI) today reported net income for the quarter ended December 31, 2007 of $124,000 or $.04 diluted earnings per share as compared to net income of $68,000 for the quarter ended December 31, 2006. The increase in earnings was primarily due to an $89,000 increase in interest income and a $55,000 increase in non-interest income for the three months ended December 31, 2007 as compared to the three months ended December 31, 2006. These were offset by a $55,000 increase in non-interest expense, a $29,000 increase in the income tax provision and a $4,000 increase in interest expense. The increase of net income for the fourth quarter is primarily a result of an increase in higher yielding commercial loan originations. Non- interest income increased as a result of selling residential loan originations and an increase in fee income from commissions earned through a financial services operation established in mid-year.
For the twelve months ended December 31, 2007, earnings increased to $103,000 or $.04 diluted earnings per share as compared to $18,000 for the twelve months ended December 31, 2006.
At December 31, 2007, SFSB, Inc., had total assets of $172.2 million, compared to $174.2 million at December 31, 2006. The decline in assets is primarily due to decreases in our cash and cash equivalents, investment securities - held to maturity and mortgage backed securities - held to maturity. During the twelve-month period we used cash, the proceeds of a matured investment and the principal repayments of the mortgage backed securities to pay off $5.0 million in borrowings.
At December 31, 2007, stockholders' equity amounted to $21.8 million compared to $22.4 million at December 31, 2006. This decrease was primarily the result of the purchase of $914,000 in additional Treasury stock. The decrease in equity also reflects a $23,000 increase in accumulated other comprehensive loss (resulting from unrealized losses on investments available for sale, net of tax), partially offset by net income of $103,000 and stock based compensation of $171,000.
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 Twelve Months Ended Ended December 31 December 31 2007 2006 2007 2006 Interest income $2,422 $2,335 $9,414 $9,091 Interest expense 1,543 1,539 6,137 5,467 Net interest income 879 796 3,277 3,624 Provision for loan losses 36 36 244 376 Net interest income after provision for loan losses 843 760 3,033 3,248 Non-interest income 157 102 434 277 Non-interest expenses 804 749 3,286 3,482 Income before income tax provision 196 113 181 43 Income tax provision 72 45 78 25 Net income $124 $68 $103 $18 Basic earnings per share .04 .02 .04 .01 Diluted earnings per share .04 .02 .04 .01 SFSB, INC AUDITED SELECTED FINANCIAL DATA (In thousands) December 31 December 31 2007 2006 Total assets $172,244 $174,225 Cash and cash 1,277 2,851 equivalents Investment securities 11,942 12,526 Loans receivable-net 147,744 147,118 Deposits 114,098 111,823 Total borrowings 34,000 39,000 Total stockholders' equity 21,769 22,365
