- The Enterprise
- The Recorder
WSB Holdings Inc., the parent company of Washington Savings Bank, F.S.B., announced results of operations for both its fourth quarter and for 2012.
WSB reported net earnings of $578,000 or 7 cents per basic and diluted share for the quarter, compared to net earnings of $283,000 or 4 cents per basic and diluted share for the comparable period of 2011.
WSB reported net earnings for 2012 of $1 million, or 13 cents per basic and diluted share, compared to net earnings of $1.2 million, or 16 cents per share for 2011.
Net interest income decreased $565,000, or 19 percent for the final quarter, and $1.5 million, or 12 percent, for 2012 as compared to the same periods last year.
According to a news release from the company, the bank is experiencing low loan demand, so there has been a decrease in its loans held for investment portfolio, which has contributed to interest income decreasing by 22 percent and 15 percent, respectively, for the quarter and the year. The decrease was partially offset by decreases in interest expense of 29 percent and 23 percent for the quarter and the year, respectively.
Noninterest income increased $1.1 million, or 142 percent, and $828,000, or 22 percent, for quarter and the year, respectively, over 2011. The release stated the increases are the result of an increase in rental income, gain on the sale of loans sold in the secondary market and gain on the sale of real estate acquired in settlement of loans and, during the last quarter, the sale of securities in the bank’s investment portfolio as discussed below.
On Sept. 10, the bank announced the execution of a merger agreement that provides for the acquisition of WSB Holdings by Old Line Bancshares Inc. for approximately $49 million, or approximately $6.12 per share, in cash and stock, subject to adjustment including adjustments relating to the value of the investment portfolio. In accordance with the merger agreement, WSB has been repositioning a portion of the investment portfolio by selling existing securities and purchasing new securities with Old Line Bancshares’ consent, the release stated. Such sales and repurchases resulted in a gain of $760,000 pretax, $460,000 net of tax, during the last quarter, offsetting the decrease in net interest income and resulting in a net profit for the fourth quarter.
Noninterest expenses increased by $174,000, or 5 percent, for the last quarter as compared to the same period last year as a result of an increase in salaries and benefits and additional professional fees associated with the pending merger. Noninterest expense increased $68,000, or 0.5 percent, for the year as a result of increase in salaries and benefits, offset by lower FDIC premiums compared to 2011.