NEWPORT - Newport Bancorp Inc., the holding company for Newport Federal Savings Bank, reported a 33 percent increase in income for the months ended March 31, 2012.
The company reported a net income of $402,000, or $0.12 per share compared to $301,000, or $0.09 per share, for the same period 2011.
The Company's assets were $467.5 million, an increase of $13.6 million from the previous quarter.
The increase was concentrated in cash and cash equivalents, which increased by $8.6 million, or 27.8 percent, and net loans, which increased by $5.1 million, or 1.4 percent. The increase in cash and cash equivalents was due an increase in deposits.
Deposit balances improved by $8.3 million, or 3.1 percent better than the fourth quarter of 2011. The increase can be broken down to deposits in NOW/Demand accounts, up $7.3 million, or 6.5 percent, and savings accounts, up $1.7 million, or 5.2 percent.
These increases were partially offset by decreases in money market accounts, $270,000, and time deposit accounts, down $392,000.
The loan portfolio increase was attributable to increases in residential mortgages, an increase of $8.5 million as compared to the last quarter, and commercial loans, which increased by $374,000.
These, increases, however, were reduced by decreases in home equity loans and lines by $852,000, commercial mortgages by $1.3 million, and construction loans which decreased by $1.7 million.
Net interest income decreased $3.6 million for the quarter, a decrease of $234,000 from the fourth quarter of 2011, due to a decrease in the interest earned on loans and securities, partially offset by a decrease in the expense from deposits and borrowings, according to the company.
The average balance of interest-earning assets for the first three months of 2012 fell by $7.3 million, compared to the first three months of 2011.
Non-performing assets totaled $3.5 million, or 0.76 percent of total assets, compared to $2.7 million, or 0.61 percent of total assets last quarter.
Net charge-offs were $312,000 and $261,000 for the quarters ended March 31, 2012 and 2011, respectively.
The provision for loan loss however, was reduced to $281,000, compared to $315,000 for the first quarter of 2011, due to a decrease in the loan portfolio, partially offset by an increase in problem loans and charge-offs.
Total stockholders' equity at March 31, 2012 was $52.2 million compared to $51.7 million on Dec. 31, 2011. The increase was primarily attributable to net income and stock-based compensation credits.
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.