BEL AIR, Md., Aug. 15 /PRNewswire-FirstCall/ -- SFSB, INC. (OTC Bulletin Board: SFBI) today reported net income for the quarter ended June 30, 2008 of $142,000 or $0.05 diluted earnings per share as compared to a net loss of $38,000 for the quarter ended June 30, 2007. The increase in earnings was primarily due to a $146,000 increase in interest income and a $24,000 increase in non-interest income, while we had a decrease of $77,000 in interest expense for the three months ended June 30, 2008 as compared to the three months ended June 30, 2007. These improvements were partially offset by a $51,000 increase in non-interest expenses. The increase in net interest income during the second quarter of 2008 is primarily a result of an increase in higher yielding commercial real estate loans. Non-interest income increased primarily as a result of an increase in fee income from commissions earned through a financial services operation established mid-year 2007.

For the six months ended June 30, 2008, net income was $184,000 as compared to a net loss of $48,000 for the six months ended June 30, 2007.

At June 30, 2008, SFSB, Inc., had total assets of $177.3 million, compared to $172.2 million at December 31, 2007. Stockholders' equity amounted to $21.6 million as of June 30, 2008 as compared to $21.8 million at December 31, 2007. The increase in assets is primarily due to an increase in our loan portfolio, primarily attributable to an increase in commercial real estate loans, which is part of a strategic effort to increase the percentage of commercial real estate loans to residential loans to improve our net interest margin.



    SFSB, Inc., headquartered in Bel Air, Maryland is the holding company of
Slavie Federal Savings Bank.  The bank is a 108 year old federally chartered,
FDIC-insured thrift serving the Baltimore Metropolitan area and surrounding
counties in Maryland.  The bank offers a wide variety of financial services
and products throughout its market area.  The bank maintains a website at
www.slavie.com.



                                  SFSB, INC.
                   UNAUDITED CONDENSED STATEMENTS OF INCOME
                     (In thousands except per share data)

                                      Three Months Ended      Six Months Ended
                                            June 30               June 30
                                        2008      2007        2008      2007
    Interest income                    $2,469    $2,323     $4,881     $4,625

    Interest expense                    1,443     1,520      2,954      3,044
    Net interest income                 1,026       803      1,927      1,581
    Provision for loan losses              38       149         74        182
    Net interest income after
     provision for loan losses            988       654      1,853      1,399
    Non-interest income                   129       105        212        172
    Non-interest expenses                 867       816      1,749      1,634
    Income (loss) before income taxes     250       (57)       316        (63)
    Income tax (benefit) provision        108       (19)       132        (15)
    Net income (loss)                     142       (38)       184        (48)
    Basic earnings (loss) per share      0.05     (0.01)      0.07      (0.02)
    Diluted earnings (loss) per share    0.05     (0.01)      0.07      (0.02)



                                  SFSB, INC
                      UNAUDITED SELECTED FINANCIAL DATA
                                (In thousands)

                                       June 30      December 31
                                         2008          2007

    Total assets                       $177,262      $172,244
    Cash and cash equivalents             1,535         1,277
    Investment securities                10,462        11,942
    Loans receivable-net                154,170       147,744
    Deposits                            122,071       114,098
    Total borrowings                     31,000        34,000
    Total stockholders' equity           21,619        21,769

SOURCE SFSB, Inc.