NEBS New England Bancshares, Inc. (MM)

New England Bancshares, Inc. (the “Company”) (NASDAQ GM: NEBS), the holding company for New England Bank (the “Bank”), today announced net income for the quarter ended March 31, 2012 of $1,167,000, or $0.20 per diluted share, compared to $715,000, or $0.12 per diluted share, for the quarter ended March 31, 2011. For the fiscal year ended March 31, 2012 the Company reported net income of $4.6 million, or $0.70 per diluted share, as compared to $3.2 million, or $0.53 per diluted share, for the fiscal 2011. President and Chief Executive Officer David J. O’Connor commented “We are very pleased to report not only a strong quarter but the most profitable fiscal year in our history. In 2012, we increased our loans outstanding by $25.7 million, or 5%, compared to our balance at March 31, 2011. Deposits increased $40.9 million, or 8%, since March 31, 2011. This growth reflected our success in serving our market area and our commitment to our communities, which resulted in our strong annual and fourth quarter 2012 earnings. Our earnings were also positively affected by our recent legal settlement.”

Results – Quarter Ended March 31, 2012:

• Net interest and dividend income was $5.6 million for the three months ended March 31, 2012, an increase of $50,000 compared to the same quarter last year. The net interest margin for the quarter was 3.45% compared to 3.73% for the comparable period a year ago.
• Non-interest income was $790,000 for the quarter ended March 31, 2012 compared to $397,000 for the fourth quarter of fiscal 2011. The Company recorded $181,000 in gains on sales of securities and loans for the quarter ended March 31, 2012 compared to $77,000 for the quarter ended March 31, 2011.
• Non-interest expense was $4.5 million for the quarter ended March 31, 2012, a decrease of $146,000 from the fourth quarter of fiscal 2011. FDIC insurance decreased by $240,000 compared to $270,000 during last year’s fourth quarter due to a change in the method the FDIC calculates insurance premiums. REO write downs and related expenses decreased by $161,000 from the same quarter last year to $92,000. Professional fees increased $141,000 to $259,000 from the same quarter a year ago and Advertising increased $118,000 from a year ago to $163,000.
• The Bank repurchased 67,191 of its outstanding common shares during the fourth quarter of fiscal 2012 through its stock repurchase program.
• The Bank is well capitalized, as defined by regulatory agencies. The Tier 1 capital ratio was 7.69% at March 31, 2012.

Results – Year Ended March 31, 2012:

• Net interest and dividend income was $22.6 million, an increase of $515,000, or 2.3%, compared to the year ended March 31, 2011.
• The provision for loan losses amounted to $1.6 million and $2.0 million for the years ended March 31, 2012 and 2011, respectively. For the 2012 fiscal year, the Company recorded $1.7 million of charge-offs, and the ratio of the allowance for loan losses to total loans was 1.02% at March 31, 2012.
• Non-interest income was $4,016,000 for the year ended March 31, 2012 compared to $2,526,000 for fiscal 2011. The Company recorded $556,000 in gains on sales of securities and loans for the year ended March 31, 2012 compared to $633,000 for the year ended March 31, 2011. Other noninterest income for the year ended March 31, 2012 included $1,283,000, before expenses of $360,000 and taxes of $287,000, from a legal settlement related to the Bank’s investment portfolio.
• Non-interest expense totaled $18.1 million for the year ended March 31, 2012, a $327,000, or 1.8%, increase from last year. Salaries and employee benefits expense increased $381,000 and professional fees, mostly related to the previously mentioned legal settlement, increased $506,000 while write downs of other real estate owned and other real estate owned expenses decreased $315,000. In addition, FDIC insurance expense decreased $375,000 due to a change in the method the FDIC now uses to calculate insurance premiums.
• Non-accrual loans were $15.2 million at March 31, 2012 versus $13.4 million at March 31, 2011. Total non-performing assets, including non-accrual loans and other real estate owned, were $16.7 million at March 31, 2012, compared to $14.9 million at March 31, 2011.

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 New England Bank with fifteen banking centers servicing the communities of Bristol, Cheshire, East Windsor, Ellington, Enfield, Manchester, Plymouth, Southington, Suffield, Wallingford and Windsor Locks. For more information regarding New England Bank’s products and services, please visit www.nebankct.com.

 

Selected Financial Highlights

(unaudited)

(dollars in thousands, except per share data)

    Income Statement Data  

Three Months EndedMarch 31,

 

 

Year EndedMarch 31,

    2012   2011   2012   2011 Net interest and dividend income   $5,640   $5,590   $22,555   $22,040 Provision for loan losses   363   347   1,600  

2,013

Noninterest income   790   397   4,016   2,526 Noninterest expense   4,529   4,675   18,103   17,777 Net income   1,167   715   4,559   3,154 Earnings per share:                 Basic   $0.20   $0.12   $0.77   $0.53 Diluted   0.20   0.12   0.76   0.53                   Dividends per share   $0.03   $0.03   $0.12   $0.10 Balance Sheet Data   March 31, 2012   March 31, 2011 Total assets   $726,502   $682,044 Total loans, net   552,246   526,595 Allowance for loan losses   5,697   5,686 Other real estate owned   1,491   1,496 Total deposits   581,628   540,769 Repurchase agreements   27,752   21,666 FHLB advances   33,044   39,113 Total equity   73,370   70,691 Non-accrual loans   15,173   13,442 Non-performing assets   16,664   14,938 Book value per share   12.34   11.48 Tangible book value per share   9.36   8.55 Key Ratios  

Three Months EndedMarch 31,

 

Year EndedMarch 31,

    2012   2011   2012   2011 Return on average assets   0.65%   0.43%   0.64%   0.46% Return on average equity   6.40%   4.14%   6.29%   4.55% Net interest margin   3.45%   3.73%   3.48%   3.57%