NewportFed holding company reports 33% rise in 1Q revenue
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.
COURTESY NEWPORT FEDERAL SAVINGS BANK
By Michael Souza PBN Staff Writer
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.