SFS Bancorp Reports Net Income of $2,115,000 for 1998, a $1,047,000 Increase from 1997

Strategic Insights -

Schenectady Federal Savings Bank's parent company, SFS Bancorp, Inc., announced a significant increase in net income in 1998, driven by a combination of factors including growth in interest-earning assets and a decline in noninterest expense. The company's net income for the year ended December 31, 1998 was $2,115,000, up from $1,068,000 in 1997. Diluted earnings per share were $1.83 for 1998, compared to $0.93 in 1997, while basic earnings per share were $1.94, up from $0.96 in 1997.

Key Takeaways:

  • SFS Bancorp's net income for 1998 was $2,115,000, an increase of $1,047,000 from 1997.
  • Net interest income for 1998 was $5,849,000, up $104,000 from 1997, driven by growth in interest-earning assets and the residential mortgage loan portfolio.
  • The provision for loan losses was $120,000 for both 1998 and 1997.
  • The terminated merger with Cohoes Savings Bank resulted in a termination fee of $2,000,000, recognized as income in the fourth quarter of 1998.
  • Noninterest expense increased by $350,000 in 1998, primarily due to incremental professional and other expenses related to the terminated merger.
  • Total assets increased by $3.8 million in 1998, driven by growth in loans receivable and the flexibility of the investments portfolio.
  • Nonperforming loans decreased by 36.2 percent in 1998 to $860,000 at December 31, 1998.
  • Total deposits increased by approximately $100,000 to $150.6 million at December 31, 1998.
  • Stockholders' Equity at December 31, 1998 was $23.6 million, representing book value per share of $19.54.

Statistics:

  • Net income: $2,115,000 (1998), $1,068,000 (1997)
  • Diluted earnings per share: $1.83 (1998), $0.93 (1997)
  • Basic earnings per share: $1.94 (1998), $0.96 (1997)
  • Net interest income: $5,849,000 (1998), $5,745,000 (1997)
  • Provision for loan losses: $120,000 (1998 and 1997)
  • Termination fee: $2,000,000
  • Noninterest expense: $4,638,000 (1998), $4,288,000 (1997)
  • Total assets: $178.2 million (1998), $174.4 million (1997)
  • Loans receivable: $140.2 million (1998), $133.8 million (1997)
  • Securities available for sale: $17.0 million (1998), $4.1 million (1997)
  • Nonperforming loans: $860,000 (1998), $1,347,000 (1997)
  • Total deposits: $150.6 million (1998), $150.5 million (1997)
  • Stockholders' Equity: $23.6 million (1998)

Sources:

  • SFS Bancorp, Inc. press release dated February 1, 1999