Newmil Bancorp (NASDAQ:NMIL)
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From May 2019 to May 2024
The Board of Directors of NewMil Bancorp, Inc.
(NASDAQ/NM:NMIL) today announced results of its fourth quarter and
fiscal year ended December 31, 2005.
Diluted earnings per share increased 8% to a record level of $2.10
for the twelve-month period ended December 31, 2005, compared to $1.95
for the 2004 period. Net income increased 6% to $8.9 million for the
twelve months ended December 31, 2005 from $8.4 million in the
comparable 2004 period. NewMil improved its net interest income,
primarily due to an increase of $90.9 million in average earning
assets, which more than offset the 39 basis point decrease in the net
interest margin to 3.52%, compared with 3.91% at December 31, 2004.
Non-interest income increased primarily from a non-recurring asset
sale gain and an OREO sale. Non-interest expense increased 1.4% to
$17.7 million when compared to the 2004 period. The efficiency ratio
was 59% for the twelve-month period.
Diluted earnings per share increased 6% to $0.54 for the fourth
quarter ended December 31, 2005 from $0.51 for the fourth quarter
ended December 31, 2004. Net income increased 0.5% to $2.23 million
for the fourth quarter of 2005, when compared to the prior year
quarter. Non-interest income increased primarily due to a gain on sale
of assets, and higher gains on sale of mortgage loans. Non-interest
expense increased $0.4 million in the three month period ended
December 31, 2005, primarily related to compensation and to a lesser
degree for occupancy, equipment and professional fees.
NewMil's assets increased to $873 million, up $128 million since
December 31, 2004. Total gross loans were $498 million at December 31,
2005 an increase of $16 million, or 3.3%, since December 31, 2004.
Credit quality remains strong, as evidenced by nonperforming assets at
18 basis points of total assets at December 31, 2005. Deposits
increased $29 million to $616 million from $587 million at December
31, 2004. At December 31, 2005, book value and tangible book value per
common share were $12.98 and $10.99, respectively, and tier 1 leverage
and total risk-based capital ratios were 6.81% and 13.09%,
respectively. Return on average shareholder's equity was 17% for the
fourth quarter of 2005 versus 16% for the fourth quarter of 2004 and
averaged 16.4% for all of 2005 versus 15.6% for the 2004 fiscal year.
Francis J. Wiatr, NewMil's Chairman, President and CEO noted,
"Given the continued difficulty of the yield curve, we are pleased
with our results for the quarter. Our record earnings for the entire
year were achieved in an environment that tested the industry as a
whole. Our commercial lending business remained strong for the year
and our programs for small business continue to rank us as one of the
top originators of SBA Loans in the State according to Small Business
Administration statistics as of September 30, 2005.
"Our deposit programs are strong and we continue to enjoy a nearly
two thirds low cost core deposit structure within our total deposit
mix. One of our most popular accounts, Security Plus Checking, was
enhanced in 2005 to provide identity theft restoration services, an
added benefit that is highly valued by our customers. Also, our highly
competitive Health Savings Account (HSA) product, introduced in 2005,
is attracting many new accounts to the Bank.
"We are extremely pleased with our new branch in Shelton which
opened September 1, 2005. By December 31, 2005 it had already
surpassed our objectives for growth for the first year and we are well
on our way to having one of the most successful branches in our
system.
"We are well positioned for 2006 to take advantage of our very
strong position in Litchfield and Fairfield Counties. The year will
have its challenges as the pressure on deposit rates backs up against
the yield curve and the industry's ability to deploy funds at the
appropriate margin. However, we will further build our market share as
people appreciate the difference dealing with a highly responsive
community bank.
"We look forward to increasing market share in the high growth
markets we serve and to improving the Bank's overall franchise as we
pursue our continued growth plans."
The Board of Directors also announced a quarterly dividend
increase of 10% to $0.22 from $0.20 per common share, payable on
February 17, 2006 to shareholders of record on February 1, 2006. This
marks the 11th consecutive increase in the company's dividend and the
46th consecutive quarterly dividend payment since the corporation
reinstituted its dividend policy in 1994, and reflects not only on the
quality of past performance, but also in the confidence of the Board's
future outlook.
NewMil Bancorp is the parent company of NewMil Bank, which has
served western Connecticut since 1858, and operates 20 full-service
banking offices.
Financial highlights are attached.
Statements in this news release concerning future results,
performance, expectations or intentions are forward-looking
statements. Actual results, performance or developments may differ
materially from forward-looking statements as a result of known or
unknown risks, uncertainties, and other factors, including those
identified from time to time in the Company's other filings with the
Securities and Exchange Commission, press releases and other
communications.
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NewMil Bancorp, Inc
SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands except ratios and per share amounts)
Three month Twelve month
period ended period ended
December 31 December 31
STATEMENT OF INCOME 2005 2004 2005 2004
Interest and dividend income $ 10,907 $ 9,009 $40,236 $35,418
Interest expense 4,485 2,503 14,324 9,515
Net interest income 6,422 6,506 25,912 25,903
Provision for loan losses - - (135) -
Non-interest income
Service fees on deposit
accounts 746 764 2,972 2,968
Gains on sales of mortgage
loans 83 39 187 185
Gains on sale of OREO - - 65 -
Gain on sale of real estate
property 334 - 334 -
Other non-interest income 187 182 762 790
Total non-interest income 1,350 985 4,320 3,943
Non-interest expense
Compensation 2,763 2,291 9,958 9,544
Occupancy and equipment 812 754 3,173 2,951
Postage and telecommunication 136 147 558 591
Professional services,
collection & OREO 220 191 796 919
Printing and office supplies 113 110 465 416
Marketing 88 141 296 550
Service bureau EDP 97 87 384 366
Amortization of intangible
assets 37 49 147 196
Other 414 493 1,955 1,957
Total non-interest expense 4,680 4,263 17,732 17,490
Income before income taxes 3,092 3,228 12,635 12,356
Provision for income taxes 862 1,010 3,718 3,909
Net income $ 2,230 $ 2,218 $ 8,917 $ 8,447
Per common share
Diluted earnings $ 0.54 $ 0.51 $ 2.10 $ 1.95
Basic earnings 0.54 0.53 2.14 2.01
Cash dividends 0.20 0.17 0.80 0.66
Statistical data
Net interest margin, (fully tax
equivalent) 3.31% 3.83% 3.52% 3.91%
Efficiency ratio 60.22 56.91 58.65 58.60
Return on average assets 1.05 1.21 1.11 1.18
Return on average common
shareholders' equity 16.90 16.01 16.40 15.59
Weighted average equivalent
common shares outstanding,
diluted 4,163 4,320 4,238 4,327
NewMil Bancorp, Inc.
SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands except ratios and per share amounts)
December 31, December 31,
FINANCIAL CONDITION 2005 2004
Total assets $ 872,975 $ 744,599
Loans, net 492,763 476,660
Allowance for loan losses 4,949 5,048
Securities 322,343 216,558
Cash and cash equivalents 22,564 18,493
Intangible assets 8,093 8,240
Deposits 615,995 587,010
Federal Home Loan Bank advances 174,266 75,654
Repurchase agreements 15,491 13,147
Long term debt 9,866 9,806
Shareholders' equity 53,016 55,613
Non-performing assets 1,590 922
Deposits
Demand (non-interest bearing) $ 77,383 $ 66,895
NOW accounts 82,400 85,889
Money market 146,007 147,375
Savings and other 88,142 85,829
Certificates of deposit 222,063 201,022
Total deposits 615,995 587,010
Per common share
Book value $ 12.98 $ 13.25
Tangible book value 10.99 11.29
Statistical data
Non-performing assets to total assets 0.18% 0.12%
Allowance for loan losses to total loans 0.99 1.05
Allowance for loan losses to non-
performing loans 311.26 547.51
Common shareholders' equity to assets 6.07 7.47
Tangible common shareholders' equity to
assets 5.15 6.36
Tier 1 leverage capital 6.81 7.79
Total risk-based capital 13.09 14.40
Common shares outstanding, net
(period end) 4,086 4,197
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