VSB Bancorp Inc. (VSBN, Financial) filed Quarterly Report for the period ended 2010-09-30.
Vsb Bancorp Inc. has a market cap of $21.62 million; its shares were traded at around $11.75 with a P/E ratio of 10.88 and P/S ratio of 1.65. The dividend yield of Vsb Bancorp Inc. stocks is 2.04%.
Total stockholders equity was $26,467,527 at September 30, 2010, an increase of $1,983,578 or 8.10%, from December 31, 2009. The increase reflected: (i) $1,079,703 net increase in retained earnings due to net income of $1,401,459 for the nine months ended September 30, 2010 partially offset by $321,756 of dividends paid in 2010; (ii) an increase in the net unrealized gain on securities available for sale of $509,821 reflecting the positive effect of low market interest rates on the fair value of our securities portfolio; (iii) a $292,211 increase due to the exercise by officers and directors of options to purchase 44,375 shares of common stock; and (iv) a reduction of $126,809 in Unearned ESOP shares reflecting the gradual payment of the loan we made to fund the ESOP s purchase of our stock. The initial implementation of the RRP resulted in a $395,586 reduction in additional paid in capital and a corresponding reduction in Treasury shares, with no net change in stockholders equity. Additionally, there was a $21,912 increase in Treasury shares representing the cost of 1,866 shares of common stock we repurchased in the second quarter and third quarter of 2010 under our Company s previously announced stock repurchase plans.
Interest Income. Interest income was $2,598,016 for the quarter ended September 30, 2010, compared to $2,623,941 for the quarter ended September 30, 2009, a decrease of $25,925, or 1.0%. There were two principal reasons for the decline. First, a $1.5 million decrease in average balance in investment securities between the periods coupled with a decline in market interest rates, were the principal causes of a $163,112 decline in interest income on investment securities. Second, an increase in the average balance of other interest-earning assets shifted our asset mix toward our lowest interest-earning asset category due to our decision to become more liquid to provide increased flexibility in the event of an interest rate increase. On the positive side, interest income on loans increased by $131,677 as the average balance of loans increased between the periods.
Provision for Loan Losses. We took a provision for loan losses of $15,000 for the quarter ended September 30, 2010 compared to a provision for loan losses of $75,000 for the quarter ended September 30, 2009. The $60,000 decrease in the provision was due to our evaluation of our loan portfolio and the low level of charge-offs in the 2010 period. A number of factors justified the reduction. Although we experienced an increase in non-performing loans from $1,755,994 at September 30, 2009 to $6,459,626 at September 30, 2010, most of those loans are secured by real estate. We individually evaluated the non-performing mortgage loans based primarily upon updated appraisals and we determined that the level of our allowance was appropriate to address inherent losses. In addition, we had recoveries (which are added back to the allowance for loan losses) of $23,484 in the third quarter of 2010. We are aggressively collecting charged-off loans in an effort to recover the amounts charged off whenever we believe that collection efforts are likely to be fruitful. Overall, our allowance for loan losses increased from $1,024,025 or 1.40% of total loans, at September 30, 2009 to $1,246,245 or 1.57% of total loans, at September 30, 2010.
Interest Income. Interest income was $7,748,647 for the nine months ended September 30, 2010, compared to $7,985,556 for the nine months ended September 30, 2009, a decrease of $236,909, or 3.0%. There were two principal reasons for the decline. First, a $4.9 million decrease in average balance in investment securities between the periods, coupled with a decline in market interest rates, were the principal causes of a $574,144 decline in interest income on investment securities. Second, an increase in the average balance of other interest-earning assets shifted our asset mix toward our lowest interest-earning asset category due to our decision to become more liquid to provide increased flexibility in the event of an interest rate increase. On the positive side, interest income on loans increased by $319,269 as the average balance of loans increased between the periods due to our efforts to increase our loan portfolio.
Provision for Loan Losses. We took a provision for loan losses of $125,000 for the nine months ended September 30, 2010 compared to a provision for loan losses of $450,000 for the nine months ended September 30, 2009. The $325,000 decrease in the provision was due to our evaluation of our loan portfolio and substantially lower level of charge-offs in the 2010 period. Charge-offs totaled $22,712 for the nine months ended September 30, 2010 as compared to $467,336 in the same period in 2009 while we had recoveries of $80,503 in the first nine months of 2010 compared to recoveries of $53,485 during the first nine months of 2009. We are aggressively collecting charged-off loans in an effort to recover the amounts charged off whenever we believe that collection efforts are likely to be fruitful. Although we experienced an increase in non-performing loans from $1,755,994 at September 30, 2009 to $6,459,626 at September 30, 2010, most of those loans are secured by real estate. We individually evaluated the non-performing mortgage loans based primarily upon updated appraisals and we determined that the level of our allowance was appropriate to address inherent losses. Overall, our allowance for loan losses increased from $1,024,025, or 1.40% of total loans at September 30, 2009 to $1,246,245, or 1.57% of total loans, at September 30, 2010.
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Vsb Bancorp Inc. has a market cap of $21.62 million; its shares were traded at around $11.75 with a P/E ratio of 10.88 and P/S ratio of 1.65. The dividend yield of Vsb Bancorp Inc. stocks is 2.04%.
Highlight of Business Operations:
Our deposits (including escrow deposits) were $213,739,702 at September 30, 2010, an increase of $2,753,616 or 1.31%, from December 31, 2009 as a result of our active solicitation of retail deposits to increase funds for investment. The increase in deposits resulted from increases of $4,033,721 in NOW accounts, $797,600 in time deposits, $211,767 in savings accounts, $39,482 in escrow deposits and $7,908 in non-interest demand deposits, partially offset by a decrease of $2,336,862 in money market accounts. Our other liabilities were $2,450,261 at September 30, 2010, an increase of $920,424 or 60.2%, from December 31, 2009 primarily due to an increase in our deferred tax liability caused by the deferred tax effect of our FAS115 adjustment on investment securities.Total stockholders equity was $26,467,527 at September 30, 2010, an increase of $1,983,578 or 8.10%, from December 31, 2009. The increase reflected: (i) $1,079,703 net increase in retained earnings due to net income of $1,401,459 for the nine months ended September 30, 2010 partially offset by $321,756 of dividends paid in 2010; (ii) an increase in the net unrealized gain on securities available for sale of $509,821 reflecting the positive effect of low market interest rates on the fair value of our securities portfolio; (iii) a $292,211 increase due to the exercise by officers and directors of options to purchase 44,375 shares of common stock; and (iv) a reduction of $126,809 in Unearned ESOP shares reflecting the gradual payment of the loan we made to fund the ESOP s purchase of our stock. The initial implementation of the RRP resulted in a $395,586 reduction in additional paid in capital and a corresponding reduction in Treasury shares, with no net change in stockholders equity. Additionally, there was a $21,912 increase in Treasury shares representing the cost of 1,866 shares of common stock we repurchased in the second quarter and third quarter of 2010 under our Company s previously announced stock repurchase plans.
Interest Income. Interest income was $2,598,016 for the quarter ended September 30, 2010, compared to $2,623,941 for the quarter ended September 30, 2009, a decrease of $25,925, or 1.0%. There were two principal reasons for the decline. First, a $1.5 million decrease in average balance in investment securities between the periods coupled with a decline in market interest rates, were the principal causes of a $163,112 decline in interest income on investment securities. Second, an increase in the average balance of other interest-earning assets shifted our asset mix toward our lowest interest-earning asset category due to our decision to become more liquid to provide increased flexibility in the event of an interest rate increase. On the positive side, interest income on loans increased by $131,677 as the average balance of loans increased between the periods.
Provision for Loan Losses. We took a provision for loan losses of $15,000 for the quarter ended September 30, 2010 compared to a provision for loan losses of $75,000 for the quarter ended September 30, 2009. The $60,000 decrease in the provision was due to our evaluation of our loan portfolio and the low level of charge-offs in the 2010 period. A number of factors justified the reduction. Although we experienced an increase in non-performing loans from $1,755,994 at September 30, 2009 to $6,459,626 at September 30, 2010, most of those loans are secured by real estate. We individually evaluated the non-performing mortgage loans based primarily upon updated appraisals and we determined that the level of our allowance was appropriate to address inherent losses. In addition, we had recoveries (which are added back to the allowance for loan losses) of $23,484 in the third quarter of 2010. We are aggressively collecting charged-off loans in an effort to recover the amounts charged off whenever we believe that collection efforts are likely to be fruitful. Overall, our allowance for loan losses increased from $1,024,025 or 1.40% of total loans, at September 30, 2009 to $1,246,245 or 1.57% of total loans, at September 30, 2010.
Interest Income. Interest income was $7,748,647 for the nine months ended September 30, 2010, compared to $7,985,556 for the nine months ended September 30, 2009, a decrease of $236,909, or 3.0%. There were two principal reasons for the decline. First, a $4.9 million decrease in average balance in investment securities between the periods, coupled with a decline in market interest rates, were the principal causes of a $574,144 decline in interest income on investment securities. Second, an increase in the average balance of other interest-earning assets shifted our asset mix toward our lowest interest-earning asset category due to our decision to become more liquid to provide increased flexibility in the event of an interest rate increase. On the positive side, interest income on loans increased by $319,269 as the average balance of loans increased between the periods due to our efforts to increase our loan portfolio.
Provision for Loan Losses. We took a provision for loan losses of $125,000 for the nine months ended September 30, 2010 compared to a provision for loan losses of $450,000 for the nine months ended September 30, 2009. The $325,000 decrease in the provision was due to our evaluation of our loan portfolio and substantially lower level of charge-offs in the 2010 period. Charge-offs totaled $22,712 for the nine months ended September 30, 2010 as compared to $467,336 in the same period in 2009 while we had recoveries of $80,503 in the first nine months of 2010 compared to recoveries of $53,485 during the first nine months of 2009. We are aggressively collecting charged-off loans in an effort to recover the amounts charged off whenever we believe that collection efforts are likely to be fruitful. Although we experienced an increase in non-performing loans from $1,755,994 at September 30, 2009 to $6,459,626 at September 30, 2010, most of those loans are secured by real estate. We individually evaluated the non-performing mortgage loans based primarily upon updated appraisals and we determined that the level of our allowance was appropriate to address inherent losses. Overall, our allowance for loan losses increased from $1,024,025, or 1.40% of total loans at September 30, 2009 to $1,246,245, or 1.57% of total loans, at September 30, 2010.
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