NEWPORT - Newport Bancorp Inc., the holding company for Newport Federal Savings Bank has posted a third quarter net income of $417,000, or 12 cents per diluted share, a 33 percent increase from the $278,000, or 8 cents per diluted share, posted for the quarter ended Sept. 30, 2011.
Net interest income decreased to $3.4 million for the quarter, a 7.7 percent drop from $3.7 million during for the same quarter in quarter in 2011. The bank attributed the drop in net interest income primarily to a decrease in the interest earned on loans and securities, partially offset by a decrease in the expense from deposits and borrowings.
Non-performing assets totaled $4.2 million, or 0.88 percent of total assets, at Sept. 30, compared to $2.7 million, or 0.61percent of total assets, at Dec. 31, 2011. Non-performing assets at Sept. 30, 2012 consisted of commercial real estate mortgage loans totaling $3.4 million, one-to-four family residential real estate mortgage loans totaling $521,000, home equity loan totaling $57,000, and $157,000 of foreclosed real estate.
Non-interest income for the third quarter totaled $592,000, and $650,000 ending Sept. 30, 2011. The $58,000 decrease, 8.9 percent, is primarily due to a $43,000 decrease in customer services fees earned on checking accounts, according to the bank.
Non-interest expenses totaled $3.2 million for the quarter, compared to $3.4 million for same time last year. The decrease was attributable to salaries, marketing costs, employee benefits and other general and administrative expenses.
A decrease in net premises and equipment was due to normal depreciation and the sale of the former Westerly branch, with a carrying value of $415,000, resulting in a gain of $15,000.
Charge-offs significantly lessened over the last 12-months. Charge-offs were $7,000 and $525,000 for the quarters ending Sept. 30, 2012 and 2011, respectively.
The loan loss provision for the third quarter this year was $176,000, compared to $507,000 for the Sept. 30, 2011, a reserve reduction of 65 percent.
For the nine months ended Sept. 30, the company reported net income of $1.1 million, or $0.32 per diluted share consistent when compared to the net income of $1.0 million, or $0.31 per basic share and $0.30 per diluted share for the nine months ended Sept. 30, 2011.
The yield on interest-earning assets decreased to 4.70 percent in the third quarter of 2012, compared to 5.30 percent for the third quarter of 2011. The decline was partially offset by an increase in the average balance of interest-earning assets, resulting in a decrease of $434,000 of income earned on such assets.
PBN is now accepting applications for its newest award program and event for RI & Bristol County to celebrate the Manufacturing Renaissance that is evolving regionally and across the country. The deadline for applications is March 20th.
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.