WSB HOLDINGS, INC. 
By BOWIE, Md., Jan. 27, 2011 /PRNewswire/ -- WSB Holdings, Inc. (Nasdaq: WSB), the parent company of Washington Savings Bank, F.S.B., (the "Bank") today announced results of operations for both the fourth quarter and the twelve month period ending December 31, 2010. WSB reports net earnings of $368,000 or $0.05 per basic and diluted share for the three months ended December 31, 2010, compared to net earnings of $209,000, or $0.03 per basic and diluted share for the comparable period of the prior year. WSB reports net loss for the year ending December 31, 2010 of $3.9 million, or $0.49 per basic and diluted share, compared to net loss of $5.7 million, or $0.73 per basic and diluted share for the twelve months ending December 31, 2009.
During the three month period ending December 31, 2010, no provision for loan losses was recorded compared to a $100,000 provision in the prior year. During the twelve month period, $3.4 million provision for loan losses was recorded compared to $9.5 million during the twelve month period last year. Net interest income for the three and twelve month period increased $45,000, or 2% and $1.3 million, or 12%, respectively, as a result of the continued restructuring and re-pricing of our liabilities including a $30 million reduction in borrowings. Non-interest income increased during the three month period ending December 31, 2010 primarily as the result of gain on sale of loans sold in the secondary market. Gain on the sale of loans increased $321,000, or 166% and $419,300, or 51% for the three and twelve month periods ending December 31, 2010 and 2009. Non-interest income decreased for the twelve month period ending December 31, 2010 primarily due to the result an other than temporary impairment charge of $2.9 million on one of our non-agency mortgage-backed securities recorded during the third quarter of 2010. Non-interest expenses increased for the three and twelve month period ending December 31, 2010, primarily as a result of an increase in salaries and benefits.
As noted, the increase in non-interest income during the three month period is the result of a gain on the sale of loans sold in the secondary market, which is a direct result of our expansion of our mortgage lending department. Approximately 30 experienced mortgage loan officers joined WSB during the fourth quarter ending December 31, 2010. Non-interest expenses also increased due to salaries and benefits as a result of this expansion.
Mr. Phillip C. Bowman, CEO, said, "During this period of slow demand in other areas of lending, we will continue to focus on increasing the mortgage activity in order to reduce balance sheet risk as well as realizing gains on the sale of loans in the secondary market. The Bank continues to remain well in excess of the regulatory levels for being 'well capitalized' and continues to look for new opportunities to grow the Bank in a conservative manner. WSB is optimistic about future periods with the opportunities for conservative loan growth and continued reduction in interest costs. We continue to be committed to the long term best interests of our customers and of our shareholders."
About The Washington Savings Bank, F.S.B.
The Washington Savings Bank, F.S.B. is a $396 million full service community bank serving the business and consumer needs of the Washington, Baltimore, Annapolis, and Southern Maryland communities.
Headquartered in the Baltimore-Washington corridor, WSB serves the banking needs of growing businesses with commercial lending facilities, commercial real estate financing, residential mortgages, and residential construction financing for both developers and individual home owners. The Bank offers a full range of deposit services and products for both consumers and businesses, through internet banking and its branches located in Anne Arundel, Prince George's, and Charles counties. Remote deposit capture services for our commercial customers allow us a commercially viable means to serve the depository needs of businesses beyond our branch network. The Bank continues to offer FDIC insurance coverage of $250,000 per depositor. The Dodd-Frank Wall Street Reform and Consumer Protection Act signed on July 21, 2010, made permanent the current standard maximum deposit insurance amount of $250,000.
For more information, visit http://www.twsb.com or call 301-352-3120.
FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended December 31,
-------------------------------
2010 2009
---- ----
Interest Income $4,554,000 $5,805,000
Interest Expense $1,670,000 $2,967,000
Net Interest Income $2,883,000 $2,838,000
Non-Interest Income $975,000 $794,000
Non-Interest Expenses $3,343,000 $3,099,000
Provision for Loan Losses $0 $100,000
Net Earnings $368,000 $209,000
Basic Earnings Per Share $0.05 $0.03
Diluted Earnings Per Share $0.05 $0.03
Dividends Declared Per
Share $0.00 $0.02
Average Shares Outstanding 7,912,294 7,851,656
Average Diluted Shares
Outstanding 7,913,196 7,858,021
Twelve Months Ended December 31,
--------------------------------
2010 2009
---- ----
Interest Income $20,727,000 $24,632,000
Interest Expense $8,375,000 $13,591,000
Net Interest Income $12,352,000 $11,041,000
Non-Interest Income $683,000 $1,819,000
Non-Interest Expenses $16,443,000 $12,714,000
Provision for Loan Losses $3,350,000 $9,450,000
Net Loss $(3,873,000) $(5,716,000)
Basic Loss Per Share $(0.49) $(0.73)
Diluted Loss Per Share $(0.49) $(0.73)
Dividends Declared Per
Share $0.00 $0.12
Average Shares Outstanding 7,885,217 7,849,105
Average Diluted Shares
Outstanding 7,885,217 7,849,105
As of
-----
December 31, December 31,
2010 2009
------------- -------------
Total Assets $395,930,000 $437,954,000
Total loans held-for-
investment $234,064,000 $249,236,000
Total non performing loans
to total loans held for
investment 11.56% 10.80%
Allowance as a percentage
of total gross
loans held-for-investment 4.37% 3.28%
Total non-performing loans
to total assets 6.84% 6.15%
Total non-performing
assets to total assets 8.37% 7.45%
Deposits and borrowings 342,581,000 382,821,000
Total Stockholders' Equity 51,619,000 52,857,000
Book Value Per Share $6.51 $6.73
Return on Average Assets (0.92)% (1.26)%
Return on Average Equity (7.29)% (10.58)%
% Change
--------
Interest Income (22)%
Interest Expense (44)%
Net Interest Income 2%
Non-Interest Income 23%
Non-Interest Expenses 8%
Provision for Loan Losses (100)%
Net Earnings 76%
Basic Earnings Per Share 66%
Diluted Earnings Per Share 66%
Dividends Declared Per
Share (100)%
Average Shares Outstanding 1%
Average Diluted Shares
Outstanding 1%
% Change
--------
Interest Income (16)%
Interest Expense (38)%
Net Interest Income 12%
Non-Interest Income (62)%
Non-Interest Expenses 29%
Provision for Loan Losses (65)%
Net Loss 32%
Basic Loss Per Share 33%
Diluted Loss Per Share 33%
Dividends Declared Per
Share (100)%
Average Shares Outstanding 0%
Average Diluted Shares
Outstanding 0%
% Change
--------
Total Assets (10)%
Total loans held-for-
investment (6)%
Total non performing loans
to total loans held for
investment 7%
Allowance as a percentage
of total gross
loans held-for-investment 33%
Total non-performing loans
to total assets 11%
Total non-performing
assets to total assets 12%
Deposits and borrowings (11)%
Total Stockholders' Equity (2)%
Book Value Per Share (3)%
Return on Average Assets 27%
Return on Average Equity 31%
Washington
As of December 31, Savings Bank,
2010: F.S.B.
-------------
Amount Ratio
Tier 1 adjusted
capital (to risk
weighted assets) $47,783,649 19.18%
Total capital (to risk
weighted assets) 50,915,261 20.44%
Core capital
(leverage) (to
tangible assets) 47,794,134 12.16%
To be
Considered
Well
Capitalized
Under Prompt
As of December 31, Corrective
2010: Action
------------
Amount Ratio
Tier 1 adjusted
capital (to risk
weighted assets) $14,948,005 6.00%
Total capital (to risk
weighted assets) 24,913,342 10.00%
Core capital
(leverage) (to
tangible assets) 19,657,158 5.00%
Excess over
Levels to be
Considered Well
Capitalized
Under Prompt
As of December 31, Corrective
2010: Action
---------------
Amount Ratio
Tier 1 adjusted
capital (to risk
weighted assets) $32,835,644 13.18%
Total capital (to risk
weighted assets) 26,001,919 10.44%
Core capital
(leverage) (to
tangible assets) 28,136,976 7.16%
Forward-Looking Statements: The statements in this release regarding increasing our mortgage banking activity, reducing risk, future gain on the sale of loans in the secondary market, future growth and continued reduction in interest costs, are forward-looking statements within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations and assessments of potential developments affecting market conditions, interest rates and other economic conditions, and are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by such forward-looking statement made in this release. Potential risks and uncertainties include, but are not limited to continued deterioration in the housing market or in general economic conditions in our market areas or a lagging recovery,, the impact of new governmental regulations, and unexpected changes in interest rates, deposit flows, loan demand and real estate values, as well as other risks and uncertainties, as described by WSB in its Annual Report on Form 10-K for the year ended December 31, 2009, and in such other reports filed with the Securities and Exchange Commission and Office of Thrift Supervision, which are available on the Bank's website at www.twsb.com. WSB will not update forward-looking statements to reflect events or developments after a forward-looking statement was made.
SOURCE WSB Holdings, Inc.
