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NewMil Bancorp Posts Record Income for 2001
NewMil Bancorp Posts Record Income for 2001. Earnings Per Share Up 15%,Net Income Up 37%. Board Announces $0.11 Quarterly Dividend.
New Milford, CT-(January 23, 2002) The Board of Directors of NewMil Bancorp,
Inc. (NASDAQ/NM:NMIL) today announced results of its fourth quarter and year
ended December 31, 2001.
For the twelve month period ended December 31, 2001, net income increased
| | - to $5.6 million from $4.1 million for 2000. Diluted earnings per share
increased 15% to $1.21 for 2001 from $1.05 for 2000. Diluted cash earnings
- share was $1.35 for 2001, up 26% from $1.07 for 2000.
- income increased 43% to $1.4 million for the fourth quarter of 2001,
compared with $1.0 million for the quarter ended December 31, 2000. Diluted
earnings per share increased 36% to 30 cents for the fourth quarter of 2001
from 22 cents for the quarter ended December 31, 2000. Diluted cash
earnings per share (excluding amortization of goodwill and core deposit
intangible) increased 42% to 34 cents for the fourth quarter of 2001 from 24
cents for the quarter ended December 31, 2000.
NewMils results for the fourth quarter of 2001 include a full quarters
operating results from the acquisition of Nutmeg Federal Savings and Loan
Association on November 9, 2000. The $411,000 increase in net income was
achieved through growth in net interest income and non-interest income
offset by increased non-interest expense. Net interest income increased
$1.4 million, or 34%, due to higher volume, and a 23 basis point increase in
- net interest margin to 4.13%. Non-interest income increased $156,000, or
25%, due to increases in service fee income and gains on sales of mortgage
loans. Non-interest expense increased $599,000 or 16% and, for the fourth
quarter of 2001 included amortization expense for goodwill and core deposit
intangible of $166,000.
Francis J. Wiatr, NewMil Chairman, President and CEO, commented "2001 was an
excellent year for NewMil and we are pleased with the results. Effective
balance sheet management and expense control in a period of growth,
continued strong asset quality and increases in market share all led to
increased earnings per share and net income."
- a result of further consolidations among large regional banks in our
market, we experienced a significant growth in our deposit base while
forging new relationships with new customers who value local, personalized
service offered by our Bank."
- low interest rate environment fueled a record year for residential
mortgage originations. While many homeowners took this opportunity to
refinance their existing loans, our wide range of mortgage programs
attracted new homebuyers and kept our new purchase activity brisk.
During the year the Bank also benefited from our active and highly
successful Small Business Administration Lending program, which was enhanced
- our designation as an SBA Preferred Lender. In fact, NewMil Bank was
ranked sixth among all Banks in the State of Connecticut for the number of
- loans originated during the SBAs fiscal year ended September 30, 2001.
- also ranked first for closed SBA 504 loans in western Connecticut during
- same period."
- also continued to strengthen our product line during the year. In
January 2001 we introduced Online Bill Pay, enhancing our already popular
Online Banking service. This service continues to attract new users,
especially among our small business customers. During the year, the Bank
installed three new ATMs, further providing our customers with access to
their accounts 7 days a week, 24 hours a day. We also expanded our Business
Development Program, which offers business customers an expanded range of
financial services. Our team of professional Business Development Officers
work closely with companies providing one-on-one banking assistance."
These financial results, which represent solid growth in our market and
across all of our business lines, demonstrate the viability and long term
earnings potential of our strategy which focuses on new opportunities in
specific segments of our market. By targeting small business and consumer
markets with successful marketing strategies, including new products and
services, we expect to continue to grow market share and will continue to
pursue an expansion strategy in high growth potential markets."
- is important to note that the Companys asset quality remains strong,
with the ratio of non-performing assets to total assets at year end at
0.31%, unchanged from the same period last year," continued Wiatr.
- December 31, 2001 NewMil had total assets of $607.0 million, up $83.4
million, or 16%, since December 31, 2000. During the twelve month period
deposits grew $38.3 million, or 9%, to $476.1 million, securities increased
$72.0 million, or 51%, to $212.4 million and net loans increased $7.8
million, or 2%, to $340.4 million. At December 31, 2001 book value and
tangible book value per common share were $11.52 and $9.40, respectively,
- tier 1 leverage and total risk-based capital ratios were 6.56% and
12.18%, respectively.
- Board announced a quarterly dividend of 12.5 cents per common share
payable on February 13, 2002 to shareholders of record on February 1, 2002.
This represents a dividend increase of 13.6%. Wiatr commented, This
increase follows a pattern of dividend increases over the years and reflects
- Boards confidence in the quality of the Companys financial results."
NewMil Bancorp is the parent company of NewMil Bank, which has served
western Connecticut since 1858, and operates 18 full-service banking offices
- one special needs branch.
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