Newport Bancorp, Inc. Reports Results For First Quarter Of 2010
Newport Bancorp, Inc. (the “Company”) (Nasdaq: NFSB), the holding company for Newport Federal Savings Bank (the “Bank” or “NewportFed”), today announced first quarter earnings for 2010. For the quarter ended March 31, 2010, the Company reported net income of $101,000, or $.03 per share (basic and diluted), compared to a net loss of $7,000, or $.00 per share (basic and diluted), for the quarter ended March 31, 2009.
During the first three months of 2010, the Company’s assets decreased by $2.3 million, or 0.5%, to $456.6 million. The decrease in assets was primarily concentrated in securities, which decreased by $1.2 million, or 2.4%, net loans, which decreased by $494,000, or 0.1%, and other assets, which decreased by $772,000, or 39.9%. The decrease in securities was attributable to sales of available-for-sale securities, partially offset by mortgage-backed securities purchases. The loan decrease was attributable to a decrease in commercial real estate mortgages (a decrease of $2.0 million or 1.9%) and construction loans (a decrease of $2.1 million or 21.9%), partially offset by growth in residential real estate mortgages (an increase of $3.8 million or 1.8%).
Deposit balances decreased by $1.8 million, or 0.7%, which resulted in a need to increase Federal Home Loan Bank borrowings by $943,000. The decrease in deposits occurred in time deposit accounts (a decrease of $3.2 million or 4.0%), partially offset by an increase in money market accounts (an increase of $1.3 million or 2.7%).
Total stockholders’ equity at March 31, 2010 was $50.6 million compared to $51.4 million at December 31, 2009. The decrease was primarily attributable to stock buybacks under the Company’s stock repurchase plan, partially offset by net income and stock-based compensation credits.Net interest income increased to $3.7 million for the quarter ended March 31, 2010 from $3.2 million for the quarter ended March 31, 2009, an increase of $507,000, or 16.0%. The increase in net interest income was primarily due to a decrease in expense from deposits and borrowings, partially offset by a decrease in the interest earned on securities. The average balance of interest-bearing deposits increased, but the average cost of interest-bearing deposits decreased by 110 basis points, resulting in a $495,000 decrease in interest expense on such deposits. As a result of the low interest rate environment, the average cost of interest-bearing liabilities decreased to 2.2% for the quarter ended March 31, 2010 from 2.9% for the quarter ended March 31, 2009. The average yield on interest-earning assets for the first three months of 2010 was 5.5%, compared to 5.7% for the first three months of 2009. The Company’s first quarter 2010 interest rate spread increased to 3.3% from 2.8% in 2009, up 50 basis points.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV