Synergy Financial (NASDAQ:SYNF)
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Synergy Financial Group, Inc. Announces Second Quarter, 2005
Earnings
CRANFORD, N.J., July 27 /PRNewswire-FirstCall/ -- John S. Fiore, President and
Chief Executive Officer of Synergy Financial Group, Inc. (NASDAQ:SYNF) (the
"Company"), the holding company of Synergy Bank and Synergy Financial Services,
Inc., today announced net income for the three-month period ended June 30, 2005
of $1.1 million, or $0.10 per basic and diluted share. This represents an
increase of $195,000, or 21.4%, from $0.9 million, or $0.08 per basic and
diluted share, for the same three-month period last year. Net income for the
six-month period ended June 30, 2005 was $2.2 million, or $0.20 per basic and
$0.19 per diluted share. This represents an increase of $310,000, or 16.2%,
from $1.9 million, or $0.18 per basic and diluted share, for the same six-month
period in 2004.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040128/SYNFDLOGO )
Total assets reached $923.0 million, on June 30, 2005, an increase of 7.2%, or
$62.3 million, from $860.7 million on December 31, 2004. The increase was
primarily attributable to increases of $92.4 million in net loans and $2.3
million in Federal Home Loan Bank of New York stock, offset by a decline of
$31.7 million in investment securities.
Net loans increased 16.5%, to $654.1 million, on June 30, 2005, from $561.7
million on December 31, 2004. On June 30, 2005, total loans were comprised of
29.5% in non-residential and multi-family mortgage loans, 29.1% in consumer
loans, 20.0% in single-family real estate loans, 17.5% in home equity loans,
2.3% in commercial and industrial loans and 1.6% in construction loans.
On June 30, 2005, the allowance for loan and lease losses was $5.1 million,
compared to $4.4 million on December 31, 2004. The ratio of the allowance to
total loans was 0.78 % on both June 30, 2005 and December 31, 2004.
Non-performing assets to total assets was 0.04% on June 30, 2005, compared to
0.03% on December 31, 2004.
Deposits reached $558.0 million on June 30, 2005, an increase of $19.1 million,
or 3.5%, from the $538.9 million reported on December 31, 2004. Certificates of
deposit increased by $27.2 million, or 10.8%, from the $252.7 million reported
at year-end 2004, while core deposits, which consist of checking, savings, and
money market accounts, decreased $8.1 million, or 2.8%. During the same period,
borrowings increased $49.6 million, or 23.4%, to $262.0 million on June 30,
2005.
Stockholders' equity totaled $98.9 million on June 30, 2005, a decrease of
4.9%, or $5.1 million, from $104.0 million on December 31, 2004. The decline
was attributable to the repurchase of common stock in open market transactions
to satisfy the Company's 2004 Restricted Stock Plan and the 5% stock repurchase
program that was announced on January 26, 2005, as well as the effect of the net
unrealized investment portfolio market value adjustment, offset by the net
income for the quarter. Additionally, on June 29, 2005, the Company's Board of
Directors declared a quarterly cash dividend of $0.05 per common share, which
represented an increase of $0.01, or 25.0%, over the prior quarterly dividend.
The dividend is payable on July 29, 2005 to stockholders of record on July 15,
2005.
Net interest income increased $893,000, or 16.2%, for the three months ended
June 30, 2005, to $6.4 million, from $5.5 million for the same period last
year. For the six months ended June 30, 2005, net interest income increased
11.2%, to $12.4 million, from $11.2 million for the same period last year.
Other income increased $348,000, or 66.4%, for the three months ended June 30,
2005, to $872,000, from $524,000 for the same period last year. For the six
months ended June 30, 2005, other income increased 51.6%, to $1.8 million from
$1.2 million for the same period last year. The increase was primarily
attributable to growth in commission income generated by Synergy Financial
Services, Inc. and an increase in income generated from bank-owned life
insurance.
Other expenses increased $795,000, or 18.7%, for the three months ended June
30, 2005, to $5.0 million, from $4.2 million for the same period last year. For
the six months ended June 30, 2005, other expenses increased $1.2 million, or
14.1%, to $9.8 million, from $8.6 million for the same period last year. The
increase was primarily attributable to salaries and benefits associated with
the Company's growth strategy, which includes equity-based employee
compensation plans.
About Synergy Financial Group, Inc.
Synergy Financial Group, Inc. is the holding company for Synergy Bank and
Synergy Financial Services, Inc. The Company is a financial services company
that provides a diversified line of products and services to individuals and
small- to mid-size businesses. Synergy offers consumer banking, mortgage
lending, commercial banking, consumer finance, Internet banking, and financial
services through a network of 19 branch offices located in Middlesex, Monmouth,
Morris, and Union counties New Jersey.
Forward-Looking Statements
This press release contains forward-looking statements, which are not
historical facts and pertain to future operating results. These forward-
looking statements are within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include, but are not
limited to, statements about our plans, objectives, expectations, and
intentions and other statements contained in this press release that are not
historical facts.
When used in this press release, the words "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates," or words of similar meaning, or
future or conditional verbs, such as "will," "would," "should," "could," or
"may" are generally intended to identify forward-looking statements. These
forward-looking statements are inherently subject to significant business,
economic, and competitive uncertainties and contingencies, many of which are
beyond our control. In addition, these forward-looking statements are subject
to assumptions with respect to future business strategies and decisions that
are subject to change. Actual results may differ materially from the results
discussed in these forward-looking statements. We do not undertake to update
any forward-looking statement that may be made by the Company from time to
time.
SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share data)
June 30, December 31,
2005 2004
(unaudited) (audited)
Assets:
Cash and amounts due from banks $4,083 $4,687
Interest-bearing deposits with banks 57 1,759
Cash and cash equivalents 4,140 6,446
Investment securities available-for-sale,
at fair value 102,743 134,360
Investment securities held-to-maturity
(fair value of $110,267 and $111,154,
respectively) 110,538 110,584
Federal Home Loan Bank of New York
stock, at cost 13,101 10,771
Loans receivable, net 654,068 561,687
Accrued interest receivable 3,014 2,751
Property and equipment, net 17,610 16,814
Cash surrender value of bank-owned life insurance 12,884 12,637
Other assets 4,918 4,627
Total assets $923,016 $860,677
Liabilities:
Deposits $558,003 $538,916
Federal Home Loan Bank advances 262,022 212,414
Advance payments by borrowers
for taxes and insurance 2,159 1,702
Accrued interest payable on advances 593 385
Dividend payable 623 498
Other liabilities 711 2,720
Total liabilities 824,111 756,635
Stockholders' equity:
Preferred stock; $.10 par value, 5,000,000
shares authorized; issued and outstanding - none - -
Common stock; $.10 par value, 20,000,000 shares
authorized; Issued - 12,466,903 in 2005 and
12,452,011 in 2004 Outstanding - 11,552,566 in
2005 and 12,064,968 in 2004 1,246 1,245
Additional paid-in-capital 86,085 86,177
Retained earnings 31,694 30,603
Unearned ESOP shares (5,622) (5,962)
Unearned RSP compensation (2,986) (3,391)
Treasury stock held for the RSP, at cost;
413,488 and 387,043 shares at June 30, 2005
and December 31, 2004, respectively (4,662) (4,343)
Treasury stock, at cost; 500,849 and - 0 -
shares at June 30, 2005 and December 31,
2004, respectively (6,050) -
Accumulated other comprehensive loss, net of
taxes (800) (287)
Total stockholders' equity 98,905 104,042
Total liabilities and stockholders' equity $923,016 $860,677
SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (unaudited)
Interest income:
Loans, including
fees $9,081 $6,669 $17,255 $13,369
Investment
securities 2,244 1,653 4,514 3,163
Other 143 23 234 45
Total interest
income 11,468 8,345 22,003 16,577
Interest expense:
Deposits 3,013 2,190 5,733 4,285
Borrowed funds 2,037 630 3,830 1,106
Total interest
expense 5,050 2,820 9,563 5,391
Net interest income
before provision
for loan losses 6,418 5,525 12,440 11,186
Provision for loan
losses 477 336 922 704
Net interest income
after provision for
loan losses 5,941 5,189 11,518 10,482
Other income:
Service charges and
other fees on deposit
accounts 503 564 1,012 1,048
Net (loss) gain on sale
of investments (34) 1 (34) 1
Commissions 201 18 449 33
Other 202 (59) 410 130
Total other income 872 524 1,837 1,212
Other expenses:
Salaries and employee
benefits 2,834 2,238 5,477 4,493
Premises and
equipment 956 934 1,828 1,915
Occupancy 527 474 1,051 947
Professional services 199 118 394 246
Advertising 246 186 453 362
Other operating 274 291 556 590
Total other
expenses 5,036 4,241 9,759 8,553
Income before income
tax expense 1,777 1,472 3,596 3,141
Income tax expense 672 562 1,371 1,226
Net income $1,105 $910 $2,225 $1,915
Per share of common
stock:
Basic earnings per
share $0.10 $0.08 $0.20 $0.18
Diluted earnings per
share $0.10 $0.08 $0.19 $0.18
Basic weighted
average shares
outstanding 11,043 11,495 11,136 10,575
Diluted weighted
average shares
outstanding 11,395 11,713 11,536 10,787
http://www.newscom.com/cgi-bin/prnh/20040128/SYNFDLOGODATASOURCE: Synergy
Financial Group, Inc.
CONTACT: Kevin M. McCloskey, Senior Vice President and Chief Operating
Officer of Synergy Financial Group, Inc., 1-800-693-3838, extension 3292
Web site: http://www.synergyonthenet.com/