VSB Bancorp (VSBN) in Staten Island, N.Y., reported higher quarterly profit on lower expenses and higher-yielding securities investments.
The $285 million-asset company reported that its second-quarter net income rose 33% from a year earlier, to nearly $300,000, or 17 cents a share. Net interest income rose less than 1%, to $1.9 million. Noninterest expenses fell 6%, to $2 million.
Noninterest income rose by 3%, to $661,830, largely because of higher service charges.
Total loans fell roughly 7%, to $71.2 million. Total deposits fell nearly 5%, to $255.9 million, primarily on large withdrawals from two customers that redeployed their investments. The net interest margin widened by 6 basis points, to 2.72%.
"The expansion of our investment portfolio" along with controlled expenses led to improved results, Raffaele Branca, VSB's president and chief executive, said in a press release. "We are employing different venues to generate additional loan production as well as looking for additional loan participations."