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EXHIBIT 99.1
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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 ENDED SEPTEMBER 30, 2003
ENFIELD, CT, October 23, 2003 - New England Bancshares, Inc. (the "Company")
(OTC: NEBS), the holding company for Enfield Federal Savings and Loan
Association (the "Bank") reported second quarter earnings of $173,000, or $0.09
per share, a decrease of $28,000, or 13.93%, from $201,000, or $0.10 per share,
reported in the same quarter a year ago. The decrease in net income was due to a
decline in the net interest margin to 3.44% for the three months ended September
30, 2003, as compared to 3.72% for the three months ended September 20, 2002.
The decline in the margin reflects in part the continuing low interest rate
environment resulting in accelerated loan prepayments.
Net interest income for the quarter amounted to $1,344,000, an increase of
$73,000, from the same quarter last year, primarily due to loan growth which
helped to offset the lower interest rate environment.
Total noninterest expenses for the quarter were $1,130,000, an increase of
$114,000, or 11.22%, from $1,016,000 for the quarter ended September 30, 2002.
The increase was primarily the result of additions to staff and other expenses
relating to the two new banking locations.
At September 30, 2003, total assets were $164.5 million, an increase of $14.9
million, or 9.96%, from September 30, 2002. Loans outstanding increased $12.2
million, or 14.07% to $98.8 million at September 30, 2003 compared to $86.7
million at September 30, 2002. Short-term investments, including federal funds
sold, interest-bearing demand deposits with other banks and money market mutual
funds, increased $3.1 million from September 30, 2002 to September 30, 2003.
Cash and due from banks decreased by $1.4 million over the same period.
Total deposits at September 30, 2003 increased by 2.21% over the levels at March
31, 2003.
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New England Bancshares, Inc. Page 2 of 3
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 regulation, 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 and Loan Association 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.
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STATISTICAL SUMMARY
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT FOR RATIOS AND PER SHARE DATA)
PERIOD ENDING SEPTEMBER 30, THREE MONTHS SIX MONTHS
- ------------------------------ -------------------- ---------------------
2003 2002 2003 2002
--------- -------- ---------- --------
Net interest income $1,344 $1,271 $2,679 $2,438
Provision for loan losses $60 $60 $120 $120
Noninterest income $97 $98 $242 $201
Noninterest expenses $1,130 $1,016 $2,347 $1,870
Net income $173 $201 $316 $441
Earnings per share $0.09 $0.10 $0.16 N/A
Average Shares outstanding 2,019,880 2,049,875 2,019,880 N/A
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New England Bancshares, Inc. Page 3 of 3
BALANCE SHEET DATA AT
SEPTEMBER 30 2003 2002
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Total assets $164,465 $149,609
Gross loans $98,840 $86,686
Allowance for loan losses $1,128 $893
Total deposits $131,806 $119,114
Total equity $23,290 $22,933
Book value per share $11.53 $11.35
KEY RATIOS QUARTER ENDED
SEPTEMBER 30
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Return on average assets 0.39% 0.54%
Return on average equity 2.71% 3.53%
Net interest margin 3.44% 3.72%
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