VSB Bancorp Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2012. For the quarter, the company's total interest income was $2,120,127 compared with $2,197,576 a year ago. Net interest income was $1,932,195 compared with $1,992,309 a year ago. The $60,114 decrease in net interest income for the fourth quarter of 2012 occurred primarily because its interest income decreased by $77,449, while its cost of funds decreased by $17,335. Income before income taxes was $326,770 compared with $265,668 a year ago. Net income was $177,255 or $0.10 per basic and diluted share compared with $162,668 or $0.09 per basic and diluted share a year ago. The $14,587 increase in net income was due to a decrease in the provision for loan losses of $375,000, partially offset by an increase in non-interest expense of $187,396, a decrease in non-interest income of $66,388, a decrease in net interest income of $60,114, and an increase in the provision for income taxes of $46,515.

For the year, the company's total interest income was $9,006,715 compared with $9,547,161 a year ago. Net interest income was $8,210,690 compared with $8,688,395 a year ago. Income before income taxes was $2,190,314 compared with $2,628,511 a year ago. Net income was $1,188,200 or $0.67 per basic and diluted share compared with $1,444,451 or $0.80 per basic and diluted share a year ago. The $256,251 reduction in net income for the year ended December 31, 2012 was attributable principally to a $477,705 decrease in net interest income, a $157,387 increase in non-interest expenses and a $43,105 decrease in non-interest income, partially offset by a $240,000 decrease in the provision for loan losses. As on December 31, 2012, the company's book value per common share was $15.55.