STATEN ISALND, N.Y. — Despite a stumbling economy, Staten Island, N.Y.-based Victory State Bank experienced a jump in net income for 2010.
Reflecting an increase of 4.7 percent for the year ended 2010, VSB Bancorp Inc.’s (NASDAQ GM: VSBN) pre-tax income rose to $3,466,764, compared to $3,312,040 for the previous year.
Net income for the year ended Dec. 31, 2010 was $1,880,629, or basic net income of $1.06 per common share. This compares to net income of $1,822,277, or basic net income of $1.02 per common share, for 2009.
“We were able to increase our net income from the prior year in a challenging economy,” said Ralph M. Branca, president and CEO of Victory State Bank. “The low interest-rate environment and our decision to increase our liquidity position continue to limit our investment options as well as hamper our earnings. We continue to shift our balance sheet to help mitigate the future rise in interest rates as we expect to see some margin compression when interest rates begin to rise.”
The $58,352 growth in net income for the year ended Dec. 31, 2010 was attributable principally to a $420,000 reduction in the provision for loan losses, partially offset by a $291,662 increase in non-interest expenses.
“We increased our earnings per common share to $1.06 this year and our book value per share to $14.27,” said Joseph J. LiBassi, chairman of VSB Bancorp. “Our ability to generate earnings in these difficult times gave us the flexibility of paying our thirteenth consecutive dividend to our stockholders. … We continue to strengthen and increase our customer relationships by delivering the highest quality personal service to the professionals and business owners on Staten Island.”
About Victory State 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 Nov. 17, 1997. The Bank’s initial capitalization of $7.0 million was primarily raised within the Staten Island community. The Bancorp’s total equity has increased to $26 million, primarily through the retention of earnings. Victory State operates five full-service locations on Staten Island: The main office in Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank.
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, weaknesses of other financial institutions, 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.
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Source: VSB Bancorp Inc.
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