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 2011. For the quarter ended March 31, 2011, the Company reported net income of $301,000, or $.09 per share (basic and diluted), compared to net income of $101,000, or $.03 per share (basic and diluted), for the quarter ended March 31, 2010.
During the first three months of 2011, the Company’s assets decreased by $156,000, to $449.5 million. The decrease in assets was primarily concentrated in securities, which decreased by $3.3 million, or 7.0%, offset by an increase of $2.9 million, or 30.8%, in cash and cash equivalents. The decrease in securities was attributable to principal payments of mortgage-backed securities held to maturity, which contributed towards the growth in cash and cash equivalents. Other changes to the balance sheet were a $389,000, or 0.1%, decrease in net loans, a $478,000, or 3.3%, increase in premises and equipment, and a $662,000 decrease, or 0.2%, in total liabilities. The loan portfolio decrease was attributable to a decrease in home equity loans and lines (a decrease of $1.0 million, or 4.4%), commercial real estate mortgages (a decrease of $475,000, or 0.5%) and commercial loans (a decrease of $175,000, or 10.7%), partially offset by growth in residential real estate mortgages (an increase of $393,000, or 0.2%) and construction loans (an increase of $927,000, or 18.7%).
Deposit balances remained relatively steady, decreasing $69,000. Decreases in NOW/Demand accounts (a decrease of $1.8 million, or 1.7%) and time deposit accounts (a decrease of $470,000, or 0.7%) were partially offset by increases in money market accounts (an increase of $1.5 million, or 2.9%) and savings accounts (an increase of $746,000, or 2.5%).
Total stockholders’ equity at March 31, 2011 was $50.2 million compared to $49.7 million at December 31, 2010. The increase was primarily attributable to net income and stock-based compensation credits.