Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - New England Bancshares, Inc. | form8k-108482_neb.htm |
NEW
ENGLAND BANCSHARES, INC.
855
Enfield Street
Enfield,
CT 06082
For
Immediate Release
CONTACT: Scott
D. Nogles, Chief Financial Officer
(860)
253-5200
New
England Bancshares, Inc. Announces a $1.7 Million
Improvement
for Net Income for the Quarter Ended March
31,
2010 and a $3.5 Million Improvement for the Year
ENFIELD,
CT, May 6, 2010– New England Bancshares, Inc. (the “Company”) (NASDAQ GM: NEBS),
the holding company for New England Bank, reported net income for the quarter
ended March 31, 2010 of $700,000, or $0.12 per diluted share as compared to a
loss of $1.0 million, or $0.18 per share, reported for the same quarter a year
ago. Net income for the year ended March 31, 2010 totaled $1.7
million, or $0.28 per diluted share, compared to a net loss of $1.8 million, or
$0.32 per share, for the same period last year. The increase was
primarily attributable to higher net interest income and higher non-interest
income.
President’s
Comments:
President
and CEO David O’Connor commented, “I am encouraged by this quarter’s
results. While there continue to be challenges facing the industry,
our focus remains on reducing costs and growing margins, in order to increase
revenues. Our commitment to meet the lending needs of our communities
have resulted in significant growth in our portfolio. We continue to
focus on profitably growing New England Bank in a safe and sound
manner.”
Results
– Fourth Quarter, March 31, 2010:
|
|
·
|
Net
interest income was $5.3 million for the three months ended March 31,
2010, an increase of $1.4 million, or 35.9%, compared to the same quarter
last year. The Company increased its loan balances and reduced
its cash held at the Federal Reserve. This helped increase the
net interest margin to 3.53% for the quarter ended March 31, 2010 compared
to 3.14% for the year ago period.
|
|
|
·
|
Non-interest
expense for the quarter ended March 31, 2010 was virtually unchanged from
the two previous quarters as the Company focused on cost control to
enhance profitability and earnings per
share.
|
|
|
·
|
The
Company held auction rate securities in three public entities for which
the Company had written-down the investments during the prior fiscal
year. In the December 31, 2009 quarter the Company converted
these auction rate securities into the underlying preferred stock and sold
two of the investments. In the current quarter the Company sold
its remaining corporate investment, as well as its investment in Fannie
Mae and Freddie Mac, and recorded a gain on sale of
$319,000.
|
Page 2 of
3
|
|
·
|
The
Company repurchased 18,200 shares of the Company’s stock during the
quarter, which was accretive to both book value and earnings per
share.
|
Results
- Year Ended March 31, 2010:
|
|
·
|
For
the fiscal year, assets, net loans and deposits grew 18.1%, 24.6% and
23.4%, respectively.
|
|
|
·
|
For
the year ended March 31, 2010 net interest income was $18.8 million, up
$3.1 million, or 19.8%, from the net interest income for the year ended
March 31, 2009.
|
|
|
·
|
Nonperforming
assets as a percentage of assets declined from 2.1% at March 31, 2009 to
1.8% at March 31, 2010.
|
|
|
·
|
The
provision for loan losses for the year ended March 31, 2010 totaled $3.0
million relative to $2.9 million for the year ended March 31,
2009.
|
|
|
·
|
The
Company recorded $1.1 million in FDIC insurance expense in the current
year compared to $322,000 in the prior year. The current year
expense includes $313,000 for the special FDIC
assessment.
|
|
|
·
|
The
Company recorded approximately $220,000 in merger related expenses during
the year ended March 31, 2010.
|
|
|
·
|
The
Company sold Riverside Investments, New England Bank’s advisory and
investment services division, during the current period and recognized a
$175,000 gain on sale of the
division.
|
|
|
·
|
Capital
remains strong with an equity to assets ratio of 10.1%. In
addition New England Bank remains well capitalized with a Tier 1 capital
ratio of 7.34%.
|
|
|
·
|
The
Company repurchased 226,867 shares of the Company’s stock during the year,
which was accretive to both book value and earnings per
share.
|
Statements
contained in this news release, which are not historical facts, are
forward-looking statements as that term is defined in the Private Securities
Litigation reform Act of 1995. Such forward-looking statements are
subject to risks and uncertainties, which could cause actual results to differ
materially from those currently anticipated due to a number of factors, which
include, but are not limited to, factors discussed in documents filed by the
Company with the Securities and Exchange Commission from time to
time. Subject to applicable laws and regulation, the Company does not
undertake – and specifically disclaims any obligation – to publicly release the
results of any revisions which may be made to any forward-looking statements to
reflect events or circumstances after the date of such statements or to reflect
the occurrence of anticipated or unanticipated events.
New
England Bancshares, Inc. is headquartered in Enfield, Connecticut, and operates
New England Bank with fifteen banking centers servicing the communities of
Bristol, Cheshire, East Windsor, Ellington, Enfield, Manchester, Plymouth,
Southington, Suffield, Wallingford and Windsor Locks. For more
information regarding New England Bank’s products and services, please visit
www.nebankct.com.
Page 3 of 3
Selected
Financial Highlights
(unaudited)
(dollars in thousands, except per
share data)
|
Income
Statement Data
|
Three
Months Ended
March
31,
|
Year
Ended
March
31,
|
||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Net
interest income
|
$ | 5,252 | $ | 3,864 | $ | 18,826 | $ | 15,718 | ||||||||
|
Provision
for loan losses
|
1,042 | 2,057 | 3,049 | 2,929 | ||||||||||||
|
Non-interest
income (charge)
|
746 | 539 | 2,945 | (550 | ) | |||||||||||
|
Non-interest
expense
|
4,159 | 3,932 | 16,834 | 14,957 | ||||||||||||
|
Net
income (loss)
|
700 | (1,007 | ) | 1,676 | (1,802 | ) | ||||||||||
|
Earnings
(loss) per share:
|
||||||||||||||||
|
Basic
|
$ | 0.12 | $ | (0.18 | ) | $ | 0.28 | $ | (0.32 | ) | ||||||
|
Diluted
|
0.12 | (0.18 | ) | 0.28 | (0.32 | ) | ||||||||||
|
Dividend
per share
|
$ | 0.02 | $ | 0.04 | $ | 0.08 | $ | 0.15 | ||||||||
|
Balance
Sheet Data
|
March
31, 2010
|
March
31, 2009
|
||||||
|
Total
assets
|
$ | 675,059 | $ | 571,664 | ||||
|
Total
loans, net
|
515,504 | 413,566 | ||||||
|
Allowance
for loan losses
|
4,625 | 6,458 | ||||||
|
Other
real estate owned
|
2,846 | 141 | ||||||
|
Total
deposits
|
517,572 | 419,436 | ||||||
|
Repurchase
agreements
|
23,460 | 12,069 | ||||||
|
FHLB
advances
|
56,860 | 66,833 | ||||||
|
Total
equity
|
67,907 | 63,954 | ||||||
|
Book
value per share
|
11.00 | 10.83 | ||||||
|
Tangible
book value per share
|
8.00 | 7.98 | ||||||
|
Key
Ratios
|
Three
Months Ended
March
31,
|
Year
Ended
March
31,
|
||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Return
on average assets
|
0.42 | % | (0.72 | )% | 0.25 | % | (0.33 | )% | ||||||||
|
Return
on average equity
|
4.13 | % | (6.22 | )% | 2.50 | % | (2.71 | )% | ||||||||
|
Net
interest margin
|
3.53 | % | 3.14 | % | 3.16 | % | 3.18 | % | ||||||||
###