- The Enterprise
- The Recorder
WSB Holdings, the parent company of Washington Savings Bank, announced results of operations for its third quarter and the nine-month period ending Sept. 30.
WSB reported a net loss of $4,000 for the third quarter, compared to net earnings of $410,000, or 5 cents per basic and diluted share, for the comparable period in 2011.
WSB reported net earnings for the year up to Sept. 30 of $448,000, or 6 cents per basic and diluted share, compared to net earnings of $966,000, or 12 cents per basic and diluted share, for the year up to Sept. 30, 2011.
Net interest income decreased $462,000, or 15 percent and $901,000, or 10 percent, for the three- and nine-month periods ending Sept. 30, as compared to the same periods last year.
As the company continues to experience low loan demand, there has been a decrease in its loans-held-for-investment portfolio, which has contributed to interest income decreasing by 16 percent and 13 percent, respectively, for the three- and nine-month periods, according to a WSB news release.
The decrease was partially offset by decreases in interest expense of 20 percent, the release states.
The decrease in interest expense is the result of continued efforts to reduce higher cost liabilities.
On Sept. 10, the company announced a merger agreement that provides for the acquisition of WSB by Old Line Bancshares for approximately $49 million, or approximately $6.12 per share, in cash and stock, subject to adjustment, including related to the value of WSB’s investment portfolio.
In accordance with the merger agreement, WSB is repositioning a portion of the investment portfolio by selling existing securities and purchasing new securities with Old Line Bancshares’ consent.
Such sales and repurchases resulted in a loss of $288,000 pretax, $174,000 net of tax, during the third quarter, resulting, along with the decrease in interest income, in a net loss for the third quarter.
Such further repositioning after Sept. 30 did, however, result in a gain of approximately $628,000 pretax, $380,000 net of tax, since Sept. 30, the release states.
Company officials expect to continue to reposition the investment portfolio to attempt to minimize any potential adjustment to the total consideration upon closing of the merger, the release states.