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NEW ENGLAND BANCSHARES, INC.
660 Enfield Street
Enfield, CT 06083
For Immediate Release
CONTACT: Scott D. Nogles, Chief Financial Officer
(860) 253-5200
New England Bancshares, Inc. Reports 72.3% Increase
in Earnings for the Quarter Ended September 30, 2004
ENFIELD, CT, October 26, 2004 - 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 September
30, 2004 of $298,000, or $0.13 per diluted share, an increase of $125,000, or
72.3%, from the $173,000, or $0.09 per diluted share, reported in the same
quarter a year ago. The increase in net income was primarily due to a $438,000
increase in net interest income and a $131,000 increase in non-interest income,
partially offset by a $384,000 increase in non-interest expense and a $57,000
increase in income tax expense. Net income for the six months ended September
30, 2004 amounted to $538,000, or $0.24 per diluted share, an increase of
$222,000 from the $316,000, or $0.16 per diluted share, for the year ago period.
The increase was comprised primarily of an $859,000 increase in net interest
income and a $144,000 increase in non-interest income, partially offset by a
$656,000 increase in non-interest expense and a $121,000 increase in income tax
expense.
Net interest and dividend income for the quarter and six months ended September
30, 2004 increased by $438,000 and $859,000, respectively. This increase was
primarily from the growth in earning assets due to the loans and securities
acquired in the acquisition of Windsor Locks Community Bank FSL, and a lower
cost of funds due to the low interest rate environment. The Company's net
interest margin for the quarter and six months ended September 30, 2004 was
3.63% and 3.71%, respectively, compared to 3.57% and 3.60% in the year earlier
periods.
Non-interest income for the quarter ended September 30, 2004 was $235,000
compared to $104,000 reported for the same period last year, an increase of
$131,000. The increase was caused primarily by a $72,000 increase in service
charges on deposit accounts, a $17,000 increase in gains on sales and calls of
available-for-sale securities and a $32,000 increase in other income. For the
six months ended September 30, 2004 non-interest income increased $144,000 to
$399,000 compared to $255,000 for the year-ago period. This increase was caused
primarily by a $96,000 increase in service charges on deposit accounts and a
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$49,000 increase in other income. During the quarter the Bank started offering
an Overdraft Privilege product which allows customers to overdraw their account
to a specified limit at the Bank's option. This new product was the primary
driver for the increase in service charges on deposit accounts.
Non-interest expense for the quarter ended September 30, 2004 was $1.5 million,
an increase of $384,000, or 34.0%, from $1.1 million for the same quarter a year
ago. For the six months ended September 30, 2004 non-interest expense increased
$656,000 to $3.0 million compared to $2.3 million for the year ago period. This
increase reflects our growth in staff and occupancy expenses associated with the
acquisition of Windsor Locks Community Bank FSL in December 2003.
At September 30, 2004, total assets were $208.5 million, an increase of $5.3
million from March 31, 2004 and a $44.0 million increase from September 30,
2003. Net loans outstanding increased $27.2 million to $124.9 million compared
to September 30, 2003 and $3.5 million compared to March 31, 2004. The increase
in loans compared to last year was partially due to the $16.4 million in loans
obtained through the acquisition of Windsor Locks Community Bank FSL. The growth
in assets was supported by the growth in deposits. Total deposits were $165.7
million at September 30, 2004 an increase of $33.9 million over September 30,
2003 and $2.9 million over March 31, 2004.
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 seven banking centers
servicing the communities of Enfield, Manchester, Suffield, East Windsor 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 per share data)
Income Statement Data Quarter Ended Six Months Ended
September 30, September 30,
2004 2003 2004 2003
---- ---- ---- ----
Net interest and dividend income $1,775 $1,337 $3,525 $2,666
Provision for loan losses $ 64 $ 60 $ 124 $ 120
Non-interest income $ 235 $ 104 $ 399 $ 255
Non-interest expenses $1,514 $1,130 $3,003 $2,347
Net income $ 298 $ 173 $ 538 $ 316
Earnings per share:
Basic $ 0.14 $ 0.09 $ 0.25 $ 0.16
Diluted $ 0.13 $ 0.09 $ 0.24 $ 0.16
Balance Sheet Data September 30, 2004 March 31, 2004 September 30, 2003
------------------ -------------- ------------------
Total assets $208,470 $203,168 $164,465
Total loans, net $124,936 $121,404 $ 97,712
Loan loss reserve $ 1,418 $ 1,301 $ 1,128
Total deposits $165,678 $162,790 $131,806
Total equity $ 27,958 $ 27,594 $ 23,290
Book value per share $ 12.72 $ 12.55 $ 11.53
Key Ratios Quarter Ended Six Months Ended
September 30, September 30,
2004 2003 2004 2003
---- ---- ---- ----
Return on average assets 0.57% 0.42% 0.52% 0.39%
Return on average equity 4.29% 3.17% 3.89% 2.92%
Net interest margin 3.63% 3.57% 3.71% 3.60%