Document and Entity Information [Abstract]

0001667939

--12-31

1,943,253

Mar. 31, 2018

EXPLANATORY NOTE

FSB Bancorp, Inc. (the “Company”) is filing this amendment to its quarterly report on Form 10-Q for the period ended March 31, 2018 to amend and restate financial statements and certain other financial information filed with the Securities and Exchange Commission (“SEC”). These amendments restate the Consolidated Financial Statements and the other financial information for the three months ended March 31, 2018 and 2017, and the audited consolidated balance sheet as of December 31, 2017 (the “Restatement Periods”). These amendments are being filed to change the Company’s treatment of mortgage recording tax expense for residential mortgage loans originated in Erie County, New York beginning in the fourth quarter of 2016 through the first quarter of 2018.

Effective for the 2015 tax year, New York state tax law was amended and allowed the Company to become eligible to recapture a portion of the special additional mortgage recording tax paid on mortgages and the Company elected to have the overpayment of tax refunded for the years ended December 31, 2015 through December 31, 2017 and the first quarter ended March 31, 2018 rather than used as a credit carryforward. As part of a review of the Company’s 2015 state tax return by the New York State Department of Taxation and Finance, management became aware that the Company had been incorrectly claiming a tax credit for residential mortgages on property located in Erie County, the Company’s second largest county for mortgage originations. Pursuant to New York State Department of Taxation and Finance rules, no tax credit will be allowed for payment of the special additional mortgage recording tax with respect to a mortgage of real property located in Erie County and the mortgage was recorded after 1987.

Upon recommendation of management, the Audit Committee of the Company determined that the effect of reversing the tax credits was necessary for the Restatement Periods. The Company estimates that the cumulative effect of the restatement due to the origination of residential mortgage loans in Erie County beginning in the fourth quarter of 2016 through the first quarter of 2018 is a reduction in income before income taxes of $266,000 and a reduction in income net of income taxes of $178,000.

The effect this restatement had on earnings for the respective comparative periods is as follows:

	For the three			For the three
	months ended			months ended
(In thousands, except per share data)	March 31, 2018			March 31, 2017
Mortgage fees and taxes	$	19		$	24
Benefit for income taxes		(4	)		(8	)
Net income (loss)	$	(15	)	$	(16	)
Earnings per common share – basic and diluted	$	(0.01	)	$	(0.01	)

Items 1, 2 and 4 have been amended to reflect the restatements. All other information contained in the original filing remains unchanged. For convenience of the reader, we have included in this amendment our entire Quarterly Report on Form 10-Q, as amended hereby. For additional information on the restatement see Note 1, Restatement in the Notes to the Unaudited Consolidated Financial Statements.

Document Fiscal Period Focus

Q1