CRANFORD, N.J., July 26 /PRNewswire-FirstCall/ -- John S. Fiore,
President and Chief Executive Officer of Synergy Financial Group,
Inc. (NASDAQ:SYNF) (the "Company"), the holding company of Synergy
Bank and Synergy Financial Services, Inc., today announced net
income for the three-month period ended June 30, 2006 of $1.060
million, or $0.10 per diluted share, compared to $1.105 million, or
$0.10 per diluted share, for the same period last year. Net income
for the six-month period ended June 30, 2006 was $2.109 million, or
$0.20 per diluted share, compared to $2.225 million, or $0.19 per
diluted share, for the same period last year. Results for the
three- and six-month periods ended June 30, 2006 included $128,000,
or $0.01 per diluted share, and $246,000, or $0.02 per diluted
share, respectively, in after-tax stock option expense relating to
the adoption of Statement of Financial Accounting Standards (SFAS)
No. 123(R), "Share-Based Payment," which became effective January
1, 2006. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040128/SYNFDLOGO ) Total
assets reached $999.7 million on June 30, 2006, an increase of
2.6%, or $25.8 million, from $973.9 million on December 31, 2005.
The increase was primarily attributable to an increase of $37.5
million in net loans, partially offset by a decline of $20.3
million in investment securities. Net loans increased 5.1%, to
$770.7 million, on June 30, 2006, from $733.2 million on December
31, 2005. During the first six months of 2006, Synergy Bank sold
approximately $9.1 million of loans that were providing yields
below current market levels. On June 30, 2006, total loans were
comprised of 39.4% in non-residential and multi-family mortgage
loans, 21.4% in consumer loans, 16.6% in single-family real estate
loans, 14.8% in home equity loans, 6.5% in commercial and
industrial loans and 1.3% in construction loans. On June 30, 2006
the allowance for loan and lease losses was $6.1 million, compared
to $5.8 million on December 31, 2005. The ratio of the allowance
for loan and lease losses to total loans was 0.78% on both June 30,
2006 and December 31, 2005. Non-performing assets represented 0.05%
of total assets on June 30, 2006, compared to 0.04% on December 31,
2005. Deposits reached $658.4 million on June 30, 2006, an increase
of $51.9 million, or 8.6%, from the $606.5 million reported on
December 31, 2005. Certificates of deposit increased by $44.6
million, or 12.2%, from the $366.5 million reported at year-end
2005, while core deposits, which consist of checking, savings, and
money market accounts, increased $7.3 million, or 3.0%. During the
same period, Federal Home Loan Bank borrowings declined $23.9
million, or 9.0%, to $242.7 million on June 30, 2006, due primarily
to the growth in deposits. Stockholders' equity totaled $94.5
million on June 30, 2006, a decrease of $0.7 million, or 0.8%, from
$95.3 million on December 31, 2005. The decline was attributable to
the repurchase of 201,893 shares of the Company's common stock in
open market transactions, partially offset by net income for the
period. Additionally, on June 28, 2006, the Company's Board of
Directors declared a quarterly cash dividend of $0.06 per common
share, which represented an increase of $0.01, or 20%, from the
Company's former quarterly cash dividend of $0.05. The dividend is
payable on July 28, 2006 to stockholders of record on July 14,
2006. Net interest income declined $198,000, or 3.1%, for the three
months ended June 30, 2006, to $6.3 million, from $6.5 million for
the same period last year. Last year's results included
approximately $117,000 of loan prepayment fees. For the six months
ended June 30, 2006, net interest income increased 0.9%, to $12.6
million, from $12.5 million for the same period last year. Other
income increased $73,000, or 9.0%, for the three months ended June
30, 2006, to $883,000, from $811,000 for the same period last year.
For the six months ended June 30, 2006, other income increased
2.9%, to $1.8 million, from $1.7 million for the same period last
year. The increase for both the three- and six-month periods was
primarily due to an increase in income generated from bank-owned
life insurance. Other expenses increased $163,000, or 3.2%, for the
three months ended June 30, 2006, to $5.2 million, from $5.0
million for the same period last year. For the six months ended
June 30, 2006, other expenses increased $626,000, or 6.4%, to $10.3
million, from $9.7 million for the same period last year. The
increase was primarily attributable to salaries and benefits
associated with the Company's growth strategy of expanding its
branch network. Additionally, for the three- and six-month periods
of 2006, there was approximately $169,000 and $328,000,
respectively, of pre-tax stock option compensation expense
associated with the adoption of SFAS No. 123(R). 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, Morris, and Union counties in 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. We do not undertake to update any
forward-looking statement that may be made by the Company from time
to time. SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Dollars in thousands) (Unaudited) June
30, December 31, 2006 2005 Assets: Cash and amounts due from banks
$6,769 $4,635 Interest-bearing deposits with banks 7,095 1,948 Cash
and cash equivalents 13,864 6,583 Investment securities
available-for-sale, at fair value 74,264 85,319 Investment
securities held-to-maturity (fair value of $82,738 and $93,575,
respectively) 86,331 95,621 Federal Home Loan Bank of New York
stock, at cost 12,298 13,263 Loans receivable, net 770,658 733,183
Accrued interest receivable 3,553 3,313 Property and equipment, net
18,304 18,570 Cash surrender value of bank-owned life insurance
15,424 13,138 Other assets 4,991 4,897 Total assets $999,687
$973,887 Liabilities: Deposits $658,417 $606,471 Other borrowed
funds 242,705 266,600 Advance payments by borrowers for taxes and
insurance 2,837 2,215 Accrued interest payable on advances 503 611
Other liabilities 693 2,740 Total liabilities 905,155 878,637
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 - 12,471,681
in 2006 and 12,471,481 in 2005 Outstanding - 11,344,188 in 2006 and
11,545,881 in 2005 1,247 1,247 Additional paid-in-capital 84,071
85,959 Retained earnings 33,655 32,794 Unearned ESOP shares (4,939)
(5,282) Unearned RSP compensation - (2,567) Treasury stock acquired
for the RSP, at cost; 326,264 in 2006 and 363,037 in 2005 (3,706)
(4,124) Treasury stock, at cost; 1,127,493 in 2006 and 925,600 in
2005 (14,125) (11,426) Accumulated other comprehensive loss, net of
taxes (1,671) (1,351) Total stockholders' equity 94,532 95,250
Total liabilities and stockholders' equity $999,687 $973,887
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,
2006 2005 2006 2005 Interest income: Loans, including fees $11,917
$9,122 $23,257 $17,342 Investment securities 1,658 2,244 3,421
4,514 Other 172 143 345 234 Total interest income 13,747 11,509
27,023 22,090 Interest expense: Deposits 5,057 3,013 9,414 5,733
Borrowed funds 2,429 2,037 4,971 3,830 Total interest expense 7,486
5,050 14,385 9,563 Net interest income before provision for loan
losses 6,261 6,459 12,638 12,527 Provision for loan losses 252 477
668 922 Net interest income after provision for loan losses 6,009
5,982 11,970 11,605 Other income: Service charges and other fees on
deposit accounts 519 504 1,013 1,012 Net gain (loss) on sale of
investments - (34) - (34) Commissions 184 201 414 449 Other 181 140
333 283 Total other income 884 811 1,760 1,710 Other expenses:
Salaries and employee benefits 3,047 2,834 6,124 5,477 Premises and
equipment 671 768 1,333 1,461 Occupancy 564 507 1,126 1,012
Professional services 262 199 459 394 Advertising 146 241 260 415
Other operating 489 467 1,043 960 Total other expenses 5,179 5,016
10,345 9,719 Income before income tax expense 1,714 1,777 3,385
3,596 Income tax expense 654 672 1,276 1,371 Net income $1,060
$1,105 $2,109 $2,225 Per share of common stock: Basic earnings per
share $0.10 $0.10 $0.20 $0.20 Diluted earnings per share $0.10
$0.10 $0.20 $0.19 Basic weighted average shares outstanding 10,313
11,043 10,335 11,136 Diluted weighted average shares outstanding
10,802 11,395 10,798 11,536
http://www.newscom.com/cgi-bin/prnh/20040128/SYNFDLOGODATASOURCE:
Synergy Financial Group, Inc. CONTACT: Kevin M. McCloskey, Senior
Vice President and Chief Operating Officer, Synergy Financial
Group, Inc., 1-800-693-3838, ext. 3292 Web site:
http://www.synergyonthenet.com/
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