Staten Island, N.Y., Bank Among Top 50 U.S. Banks Making The Best Use Of Shareholder Money, Report Says
Victory State Bank is only financial institution in state to qualify for nationwide ‘Nifty 50’ list
STATEN ISLAND, N.Y. (March 15, 2012) – A Staten Island, N.Y.-based bank has been ranked as one of the top 50 publically traded U.S. banks in regard to handling capital on behalf of shareholders, according to a recent report by Bank Director magazine.
VSB Bancorp, Inc. (NASDAQ: VSBN), the one-bank holding company for Victory State Bank, scored 28th on the industry publication’s “Nifty 50” list, making Staten Island’s only community-based commercial bank the sole bank in New York state to qualify for the distinction.
“We have to continually balance the return we generate for our stockholders with maintaining the strength of our company. Our position on the “Nifty 50” demonstrates our commitment to both ideals,” said Ralph Branca, president and CEO of Victory State Bank.
The 50 banks on the list had scored best in a survey of the 484 U.S. banks traded on the NYSE, NYSE Amex or NASDAQ OMX stock exchanges.
Bank Director explains the formula for the rankings as having two financial metrics:
- Core return on tangible common equity (ROTCE)
- The ratio of average tangible common equity (TCRE) to tangible assets
The rankings, an initiative of Bank Director and the New York-based investment banking firm Sandler O’Neill + Partners, combined each individual institution’s two scores into a final number; the lower the final number, the higher the ranking.
Due to federal legislation and the urging of bank regulators, commercial banks and thrifts are now “required to maintain much higher levels of capital,” the Bank Director article explains.
For the majority of banks and thrifts, this translates into lower returns.
“Capital strength is a necessary component to weather the economic storm that we have been facing these past four years,” said Joseph J. LiBassi, chairman of VSB Bancorp. “We have been able to generate a good return to our stockholders through our earnings, the payment of cash dividends and most recently, our stock buyback program.”
VSB Bancorp’s final score was 233. Republic Bancorp Inc. (NASDAQ: RBCAA), Kentucky, placed first on the list with a score of 85, and Lakeland Financial Corp. (NASDAQ: LKFN), Indiana was posted at number 50 with a score of 254.
The entire Bank Director article and “Nifty 50” list may be seen at http://www.bankdirector.com/index.php/magazine/archives/1st-quarter-2012/the-bank-director-nifty-50/.
ABOUT VSB BANCORP, INC.
VSB Bancorp, Inc. is the one-bank holding company for Victory State Bank. Victory State Bank, a Staten Island, N.Y.-based commercial bank, which commenced operations on November 17, 1997. The bank’s initial capitalization of $7.0 million was primarily raised in the Staten Island community. The Bancorp’s total equity has increased to $27.1 million primarily through the retention of earnings. The bank operates five full-service locations on Staten Island: The main office in Great Kills, and branches in West Brighton, St. George, Dongan Hills and Rosebank. Victory State Bank’s sixth location, subject to regulatory approval, will be located in Charleston.
Media Contact: Barton Horowitz