NEWPORT – Newport Bancorp Inc. the holding company for Newport Federal Savings Bank, on Friday reported second-quarter net income of $253,000, a 42 percent decline from the $439,000 profit posted during the same quarter ending June 30 last year.
Through June of this year, the bank has posted a profit of $655,000, or 20 cents per share. That’s 11 percent less than the $740,000 in net income, or 22 cents per share, reported for the same six-month period last year.
During the first six months of 2012, the bank’s assets increased by $12.6 million, or 2.8 percent, to $466.6 million. The increase in assets was primarily concentrated in net loans, which increased by $15.3 million, or 4.4 percent, partially offset by a $3.3 million, or a 10.8 percent decrease in cash and cash equivalents. The decrease in cash and cash equivalents is due to an increase in loan originations, partially offset by an increase in deposits and borrowings.
Net interest income of $3.4 million for second quarter was less than the $3.8 million for the second quarter in 2011. Net interest income for the first six months of 2012 was $7 million, a decrease of $583,000, or 7.7 percent, when compared to the $7.6 million reported for 2011. According to the bank, the decrease was caused by a reduction in the interest earned on loans and securities, partially offset by a decrease in the expense from deposits and borrowings.
The loan-portfolio gain is due to increases in family residential mortgages, commercial mortgages, commercial loans and consumer loans, but were offset by decreases in home- equity loans and lines, and construction loans.
Nonperforming assets totaled $6.8 million, or 1.47 percent of total assets, at June 30, compared to $2.7 million, or 0.61 percent of total assets, at Dec. 31, 2011