FOR IMMEDIATE RELEASE
July 30, 2003
For further information contact:
Ralph A. Fernandez
Vice President and Chief Financial Officer
Synergy Financial Group, Inc.
(800) 693-3838, extension 3292
Synergy Financial Group, Inc.
Announces Second Quarter, 2003 Earnings
Cranford, New Jersey, July 30, 2003 - John S. Fiore, President and Chief
Executive Officer of Synergy Financial Group, Inc. (OTCBB: SYNF), the
middle-tier stock holding company of Synergy Bank and Synergy Financial
Services, Inc., today announced earnings for the three- and six-month periods
ended June 30, 2003. For the three months ended June 30, 2003, net income was
$726,993, or $0.22 per basic and diluted share, an increase of 17.4 percent from
$619,417 for the same period a year ago. Net income for the six-month period
ended June 30, 2003 was $1.6 million, an increase of $434,218, or 38.5 percent,
from $1.1 million for the same period a year earlier. Basic and diluted earnings
per common share were $0.48 for the first six months of 2003. The improved
results are primarily due to the growth and service initiatives undertaken by
the Company over the last few years to enhance profitability.
Total assets reached $562.3 million at June 30, 2003, an increase of 51.4
percent, or $190.9 million, from $371.4 million at June 30, 2002. Net loans
increased 29.9 percent, or $86.9 million, from $290.2 million on June 30, 2002
to $377.1 million on June 30, 2003. The allowance for loan and lease losses was
$3.0 million at June 30, 2003, compared to $1.9 million on June 30, 2002. The
increased allowance for loan and lease losses was primarily attributable to a
marked increase in total loans. Net deposits reached $442.7 million on June 30,
2003, an increase of 46.7 percent from the $301.7 million reported on June 30,
2002.
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Shareholders' equity at June 30, 2003 totaled $39.5 million, up 65.6 percent, or
$15.7 million, from twelve months ago. The increase is primarily attributable to
the minority stock offering of September 17, 2002 that generated additional
equity capital of approximately $14 million.
Net interest income during the second quarter of 2003 was $4.8 million, compared
to $3.7 million during the same period last year, an increase of 31.6 percent.
During the six months ended June 30, 2003, net interest income increased 41.6
percent, from $6.8 million to $9.6 million, when compared to the same period in
2002. This increase was primarily attributable to the growth in assets, a
continuing favorable interest rate environment and effective management of
interest rate spread.
Non-interest income increased to $651,677 for the second quarter of 2003, from
$566,079 for the same period in 2002. This was an increase of $85,598, or 15.1
percent. During the six months ended June 30, 2003, non-interest income totaled
$1.0 million compared to $884,923 for the comparable period in 2002. This
represents an increase of $148,874, or 16.8 percent. This increase was primarily
attributable to growth in service fees and other charges associated with an
expanding account base, along with an increase in the value of bank-owned life
insurance.
Non-interest expense increased to $4.0 million in the second quarter of 2003,
compared with $3.0 million for the second quarter of 2002. During the six months
ended June 30, 2003, non-interest expense totaled $7.8 million, compared to $5.4
million for the same period in 2002, an increase of $2.4 million, or 44.0
percent. The increase in non-interest expense is primarily due to increased
operating expenses associated with new branch offices, six of which opened in
the final three quarters of 2002 and two that were added with the acquisition of
First Bank of Central Jersey in January 2003.
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About Synergy Financial Group, Inc.
Synergy Financial Group, Inc. (the "Company) is the holding company for Synergy
Bank and Synergy Financial Services, Inc. A majority of the stock of the Company
is held by Synergy, MHC, a federal mutual holding company. The Company is a
financial services company that provides a diversified line of products and
services to consumers and small- to mid-sized businesses. Synergy offers
consumer banking, mortgage lending, commercial banking, consumer finance,
Internet banking, and financial services through a network of 18 branch offices
located in Middlesex, Monmouth, Morris, and Union counties New Jersey.
Forward-Looking Statements
This press release contains forward-looking statements, which are not historical
facts and pertain to future operating results. These forward-looking statements
are within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to, statements
about our plans, objectives, expectations, and intentions and other statements
contained in this press release that are not historical facts.
When used in this press release, the words "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates" or words of similar meaning, or future
or conditional verbs, such as "will," "would," "should," "could," or "may" are
generally intended to identify forward-looking statements. These forward-looking
statements are inherently subject to significant business, economic, and
competitive uncertainties and contingencies, many of which are beyond our
control. In addition, these forward-looking statements are subject to
assumptions with respect to future business strategies and decisions that are
subject to change. Actual results may differ materially from the results
discussed in these forward-looking statements for the reasons, among others,
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discussed under the heading "RISK FACTORS" in Synergy Financial Group, Inc.'s
August 9, 2002 Prospectus.
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