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NEW ENGLAND BANCSHARES, INC.
660 Enfield Street
Enfield, CT 06083
FOR IMMEDIATE RELEASE
CONTACT: David J. O'Connor, President and CEO
(860) 253-5200
NEW ENGLAND BANCSHARES, INC. REPORTS EARNINGS FOR THE
QUARTER AND YEAR ENDED MARCH 31, 2003
ENFIELD, CT, May 28, 2003--New England Bancshares, Inc. (the "Company") (OTC:
NEBS), the holding company for Enfield Federal Savings and Loan Association (the
"Bank") reported net income for the quarter ended March 31, 2003 of $106,000,
compared to $225,000 for the same quarter a year ago. Net income for the twelve
months ended March 31, 2003 was $708,000, compared to $656,000 for the twelve
months ended March 31, 2002, an increase of $52,000.
Commenting on the quarterly results, David J. O'Connor, President and Chief
Executive Officer stated that the decrease in net income for the quarter ended
March 31, 2003 compared to the same period in 2002 was due to an increase in
operating expenses related to the opening of two branch offices in 2002 and the
staff additions to support them, and the development and conversion to a new
core processing system. However, net interest income improved significantly for
the same period due to an increase in earnings assets.
Earnings per share for the quarter ended March 31, 2003 amounted to $0.05.
Because NEBS issued shares in June 2002, per share earnings are not applicable
for prior comparative periods and therefore are not presented.
Net interest income for the fourth quarter increased by $178,000 to $1,257,000
compared to $1,079,000 for the fourth quarter 2002. On a year-to-date basis, net
interest income for the year ended March 31, 2003 increased $1,043,000 or 26.31%
to $5,008,000 from $3,965,000 reported for the same period in 2002.
At March 31, 2003, total assets were $161.2 million, an increase of $24.8
million or 18% from a year ago. Net loans outstanding increased $13.1 million,
or 16%, to $93.6 million compared to $80.5 million a year ago. Total deposits
were $129.0 million at March 31, 2003, an increase of $14.0 million over March
31, 2002. Total borrowings from the Federal Home Loan Bank of Boston increased
$2.0 million. Shareholders' equity increased $8.8 million, primarily due to the
$7.7 million in net proceeds from the initial stock offering in June 2002.
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Statements contained in this news release, which are not historical facts, are
forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risks and uncertainties, which could cause actual results to differ materially
from those currently anticipated due to a number of factors, which include, but
are not limited to, factors discussed in documents filed by the Company with the
Securities and Exchange Commission from time to time. Subject to applicable laws
and regulations, the Company does not undertake - and specifically disclaims any
obligation - to publicly release the results of any revisions which may be made
to any forward-looking statements to reflect events or circumstances after the
date of such statements or to reflect the occurrence of anticipated or
unanticipated events.
New England Bancshares, Inc. is headquartered in Enfield, Connecticut, and
operates Enfield Federal Savings with six banking centers servicing the
communities of Enfield, Manchester, Suffield, and Windsor Locks. For more
information regarding the Bank's products and services, please visit
www.enfieldfederal.com.
STATISTICAL SUMMARY
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
PERIOD ENDING MARCH 31, THREE MONTHS YEAR-TO-DATE
- ----------------------- ---------------------- -----------------------
2003 2002 2003 2002
--------- --------- --------- -----------
Net interest income $1,257 $ 1,079 $5,008 $3,965
Provision for loan losses $60 $94 $240 $200
Noninterest income $134 $153 $471 $432
Noninterest expenses $1,187 $865 $4,225 $3,249
Net income $106 $225 $708 $656
Earnings per share $0.05 N/A N/A N/A
Average Shares outstanding 2,003,288 N/A N/A N/A
BALANCE SHEET DATA AT
MARCH 31, 2003 2002
- --------------------- --------- --------
Total assets $161,184 $136,311
Total loans, net $93,581 $80,468
Loan loss reserve $1,008 $773
Total deposits $128,953 $114,998
Total equity $23,150 $14,352
Book value per share $11.46 N/A
KEY RATIOS QUARTER ENDED
MARCH 31,
- ------------------------
Return on average assets 0.47% 0.52%
Return on average equity 3.40% 3.15%
Net interest margin 3.46% 3.38%
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