CRANFORD, N.J., July 25 /PRNewswire-FirstCall/ -- John S. Fiore,
President and Chief Executive Officer of Synergy Financial Group,
Inc. (Nasdaq/Global Market: SYNF) (the "Company"), the holding
company for Synergy Bank and Synergy Financial Services, Inc.,
today announced net income for the three-month period ended June
30, 2007 of $280,000, or $0.03 per diluted share, compared to
$1.060 million, or $0.10 per diluted share, for the same period
last year. Net income for the six-month period ended June 30, 2007
was $1.121 million, or $0.10 per diluted share, compared to $2.109
million, or $0.20 per diluted share, for the same period last year.
Results for the three- and six-month periods ended June 30, 2007
include $710,000, or $0.07 per diluted share, of after-tax
merger-related expenses. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040128/SYNFDLOGO ) On May 13,
2007, the Company announced the signing of a definitive agreement
pursuant to which it will merge with and into New York Community
Bancorp, Inc. (NYSE:NYB). The Company's shareholders will receive
0.80 of a share of New York Community Bancorp, Inc. common stock in
a tax-free exchange for each share of the Company's common stock
held at the closing date. The merger is expected to occur during
the fourth quarter of 2007, pending approval of the Company's
shareholders and that of certain regulatory agencies. Total assets
were $932.5 million on June 30, 2007, a decrease of 5.5%, or $53.8
million, from $986.3 million on December 31, 2006. The decrease was
primarily attributable to a decrease of $34.5 million in net loans,
coupled with a decline of $17.5 million in investment securities.
Net loans decreased 4.5%, to $730.5 million, on June 30, 2007, from
$765.0 million on December 31, 2006. Over the past year, the
Company decelerated the origination of automobile loans in favor of
higher-yielding, commercial-based products. As a result, automobile
loans declined $30.8 million from December 31, 2006, while
multi-family/non-residential loans and commercial loans increased
$8.4 million, collectively. On June 30, 2007, multi-family/non-
residential loans represented 45.1%, single-family real estate
loans represented 16.0%, consumer loans represented 15.6%, home
equity loans represented 14.1%, commercial and industrial loans
represented 7.8%, and construction loans represented 1.4% of total
loans. On June 30, 2007, the allowance for loan losses was $5.7
million, compared to $6.0 million on December 31, 2006. The ratio
of the allowance for loan losses to total loans was 0.78% on both
June 30, 2007 and December 31, 2006. Non-performing assets
represented 0.02% of total assets on June 30, 2007, compared to
0.04% on December 31, 2006. Deposits were $598.6 million on June
30, 2007, a decrease of $47.2 million, or 7.3%, from the $645.8
million reported on December 31, 2006. Core deposits, which consist
of checking, savings, and money market accounts, increased $27.8
million, or 12.1%, while certificates of deposit decreased by $75.0
million, or 18.1%, from the $415.4 million reported at year-end
2006. During the same period, Federal Home Loan Bank borrowings
decreased $8.2 million, or 3.5%, to $227.5 million on June 30,
2007. Stockholders' equity totaled $99.9 million on June 30, 2007,
an increase of $1.4 million, or 1.4%, from $98.5 million on
December 31, 2006. The increase was primarily attributable to net
income for the period and stock benefit plan activity, partially
offset by cash dividends declared. Net interest income declined
$760,000, or 12.1%, for the three months ended June 30, 2007, to
$5.5 million, from $6.3 million for the same period last year. For
the six months ended June 30, 2007, net interest income decreased
13.4%, to $10.9 million, from $12.6 million for the same period
last year. This year-over-year decline was the result of margin
compression stemming from the flat to inverted yield curve,
increased funding costs and a slowdown in asset growth. Compared to
the first quarter of 2007, net interest income for the second
quarter increased $60,000. The net interest margin for the second
quarter of 2007 increased to 2.48%, from 2.37% for the first
quarter of 2007, but was down 18 basis points from the 2.66% for
the second quarter of 2006. Other income increased $106,000, or
12.0%, for the three months ended June 30, 2007, to $990,000, from
$884,000 for the same period last year. For the six months ended
June 30, 2007, other income increased 14.1%, to $2.0 million. The
increase for both the three- and six-month periods was primarily
due to an increase in income from bank-owned life insurance. Other
expenses increased $662,000, or 12.8%, for the three months ended
June 30, 2007, to $5.8 million. For the six months ended June 30,
2007, other expenses increased $579,000, or 5.6%, to $10.9 million,
from $10.3 million for the same period last year. For the three-
and six-month periods of 2007, there were approximately $835,000 of
pre-tax expenses relating to the proposed merger with New York
Community Bancorp, Inc. Excluding these merger-related expenses,
core operating expenses declined 3.3% and 2.5% for the three- and
six-month periods of 2007, respectively. This decrease in core
expenses was primarily attributable to reduced spending, as the
Company remains focused on controlling costs. This press release
does not constitute an offer to sell or a solicitation of an offer
to buy any securities. The proposed transaction will be submitted
to the Company's stockholders for their consideration. New York
Community Bancorp, Inc. has filed a registration statement
containing a proxy statement/prospectus that will be sent to the
Company's stockholders, and other relevant documents concerning the
proposed transaction, with the U.S. Securities and Exchange
Commission (the "SEC"). The Company has filed and will continue to
file relevant documents concerning the proposed transaction with
the SEC. WE URGE INVESTORS TO READ THE REGISTRATION STATEMENT
CONTAINING THE PROXY STATEMENT/PROSPECTUS, AND ANY OTHER RELEVANT
DOCUMENTS FILED WITH THE SEC, BECAUSE THEY CONTAIN IMPORTANT
INFORMATION. Investors will be able to obtain these documents free
of charge at the SEC's web site (http://www.sec.gov/). In addition,
documents filed with the SEC by New York Community Bancorp, Inc.
will be available free of charge from the Investor Relations
Department, New York Community Bancorp, Inc., 615 Merrick Avenue,
Westbury, New York 11590. Documents filed with the SEC by the
Company will be available free of charge from the Corporate
Secretary, Synergy Financial Group, Inc., 310 North Avenue East,
Cranford, New Jersey 07016. The Company's directors, executive
officers, and certain other members of management may be soliciting
proxies in favor of the transaction from the Company's
shareholders. For information about these directors, executive
officers, and members of management, please refer to the Company's
proxy statement for the 2007 Annual Meeting of Stockholders, which
is available on its web site and on the SEC's web site, and at the
address provided in the preceding paragraph. Safe Harbor Provisions
of the Private Litigation Reform Act of 1995 This release, like
other written and oral communications presented by Synergy
Financial Group, Inc. (the "Company") and its authorized officers,
may contain certain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. The
Company intends such forward-looking statements, including those
pertaining to its pending merger with and into New York Community
Bancorp, Inc., to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995, and is including this statement for
purposes of said safe harbor provisions. Forward-looking
statements, which are based on certain assumptions, may be
identified by their reference to future periods. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this release. Except
as required by applicable law or regulation, the Company disclaims
any obligation to update any forward-looking statements. About
Synergy Financial Group, Inc. Synergy Financial Group, Inc. is the
holding company for Synergy Bank and Synergy Financial Services,
Inc. The Company is a financial services company that provides a
diversified line of products and services to individuals and small
to mid-size businesses. Synergy offers consumer banking, mortgage
lending, commercial banking, consumer finance, Internet banking,
and financial services through a network of 20 branch offices
located in Middlesex, Monmouth, and Union counties in New Jersey.
An additional branch office is scheduled to open in Mercer County
during the third quarter of 2007. SYNERGY FINANCIAL GROUP, INC. AND
SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands)
(Unaudited) June 30, December 31, 2007 2006 Assets: Cash and
amounts due from banks $4,487 $5,673 Interest-bearing deposits with
banks 2,698 4,458 Cash and cash equivalents 7,185 10,131 Investment
securities available-for-sale, at fair value 58,534 68,417
Investment securities held-to-maturity (fair value of $68,188 and
$76,263, respectively) 70,290 77,917 Federal Home Loan Bank of New
York stock, at cost 11,643 11,981 Loans receivable, net 730,533
765,001 Accrued interest receivable 3,798 3,848 Property and
equipment, net 20,681 20,106 Cash surrender value of bank-owned
life insurance 22,274 21,816 Other assets 7,536 7,109 Total assets
$932,474 $986,326 Liabilities: Deposits $598,563 $645,816 Other
borrowed funds 227,500 235,675 Advance payments by borrowers for
taxes and insurance 2,945 2,701 Accrued interest payable on
advances 511 651 Other liabilities 3,104 2,983 Total liabilities
832,623 887,826 Stockholders' equity: Preferred stock; $.10 par
value, 5,000,000 shares authorized; issued and outstanding - none -
- Common stock; $.10 par value, 20,000,000 shares authorized;
Issued - 12,509,636 in 2007 and 2006 Outstanding - 11,382,143 in
2007 and 2006 1,251 1,251 Additional paid-in-capital 86,114 85,381
Retained earnings 34,350 34,582 Unearned ESOP shares (4,363)
(4,600) Treasury stock acquired for the RSP, at cost; 229,450 in
2007 and 271,613 in 2006 (2,607) (3,086) Treasury stock, at cost;
1,127,493 in 2007 and 2006 (14,125) (14,125) Accumulated other
comprehensive loss, net of taxes (769) (903) Total stockholders'
equity 99,851 98,500 Total liabilities and stockholders' equity
$932,474 $986,326 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (In thousands, except per share
data) (Unaudited) Three Months Ended Six Months Ended June 30, June
30, 2007 2006 2007 2006 Interest income: Loans, including fees
$12,185 $11,917 $24,640 $23,257 Investment securities 1,371 1,658
2,823 3,421 Other 214 172 437 345 Total interest income 13,770
13,747 27,900 27,023 Interest expense: Deposits 5,793 5,057 12,008
9,414 Borrowed funds 2,476 2,429 4,950 4,971 Total interest expense
8,269 7,486 16,958 14,385 Net interest income before provision for
loan losses 5,501 6,261 10,942 12,638 Provision for loan losses 24
252 80 668 Net interest income after provision for loan losses
5,477 6,009 10,862 11,970 Other income: Service charges and other
fees on deposit accounts 526 519 1,033 1,013 Commissions 184 184
410 414 Other 280 181 566 333 Total other income 990 884 2,009
1,760 Other expenses: Salaries and employee benefits 2,987 3,047
6,163 6,124 Premises and equipment 605 671 1,235 1,333 Occupancy
615 564 1,231 1,126 Professional services 178 262 382 459
Advertising 149 146 194 260 Merger-related 835 - 835 - Other
operating 472 489 884 1,043 Total other expenses 5,841 5,179 10,924
10,345 Income before income tax expense 626 1,714 1,947 3,385
Income tax expense 346 654 826 1,276 Net income $280 $1,060 $1,121
$2,109 Per share of common stock: Basic earnings per share $0.03
$0.10 $0.11 $0.20 Diluted earnings per share $0.03 $0.10 $0.10
$0.20 Basic weighted average shares outstanding 10,538 10,313
10,510 10,335 Diluted weighted average shares outstanding 10,891
10,705 10,900 10,688
http://www.newscom.com/cgi-bin/prnh/20040128/SYNFDLOGO
http://photoarchive.ap.org/ DATASOURCE: Synergy Financial Group,
Inc. CONTACT: Kevin M. McCloskey, Senior Vice President and Chief
Operating Officer of Synergy Financial Group, Inc.,
+1-800-693-3838, extension 3292 Web site:
http://www.synergyonthenet.com/
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