CRANFORD, N.J., Oct. 25 /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 September 30, 2006 of $981
thousand, or $0.09 per diluted share, compared to $1.108 million,
or $0.10 per diluted share, for the same period last year. Net
income for the nine-month period ended September 30, 2006 was
$3.090 million, or $0.29 per diluted share, compared to $3.333
million, or $0.29 per diluted share, for the same period last year.
Results for the three- and nine-month periods ended September 30,
2006 included $129,000, or $0.01 per diluted share, and $376,000,
or $0.03 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 $993.3 million on September 30, 2006, an increase of
2.0%, or $19.4 million, from $973.9 million on December 31, 2005.
The increase was primarily attributable to an increase of $36.0
million in net loans and $8.4 million in bank-owned life insurance,
partially offset by a decline of $26.7 million in investment
securities. Net loans increased 4.9%, to $769.1 million, on
September 30, 2006, from $733.2 million on December 31, 2005.
During the first nine months of 2006, Synergy Bank sold
approximately $9.1 million of loan participations that were
providing yields below current market levels. On September 30,
2006, total loans were comprised of 40.5% in non-residential and
multi-family mortgage loans, 20.2% in consumer loans, 16.6% in
single-family real estate loans, 14.6% in home equity loans, 6.8%
in commercial and industrial loans and 1.3% in construction loans.
On September 30, 2006, the allowance for loan losses was $6.0
million, compared to $5.8 million on December 31, 2005. The ratio
of the allowance for loan losses to total loans was 0.78% on both
September 30, 2006 and December 31, 2005. Non-performing assets
represented 0.13% of total assets on September 30, 2006, compared
to 0.04% on December 31, 2005. The increase was due to an $825,000
non-residential loan, which was placed into non-performing status
during the third quarter of 2006. Deposits reached $635.3 million
on September 30, 2006, an increase of $28.8 million, or 4.8%, from
the $606.5 million reported on December 31, 2005. Certificates of
deposit increased by $31.8 million, or 8.7%, from the $366.5
million reported at year-end 2005, while core deposits, which
consist of checking, savings, and money market accounts, decreased
3.0 million, or 1.2%. During the same period, Federal Home Loan
Bank borrowings declined $11.9 million, or 4.4%, to $254.8 million
on September 30, 2006. Stockholders' equity totaled $96.5 million
on September 30, 2006, an increase of $1.2 million, or 1.3%, from
$95.3 million on December 31, 2005. The increase was attributable
to net income for the period, partially offset by the repurchase of
201,893 shares of the Company's common stock in open market
transactions. Additionally, on September 27, 2006, the Company's
Board of Directors declared a quarterly cash dividend of $0.06 per
common share, which is payable on October 27, 2006 to stockholders
of record on October 13, 2006. Net interest income declined
$491,000, or 8.0%, for the three months ended September 30, 2006,
to $5.7 million, from $6.2 million for the same period last year.
For the nine months ended September 30, 2006, net interest income
decreased 2.0%, to $18.3 million, from $18.7 million for the same
period last year. This year-over-year decline was the result of
margin compression stemming from the prolonged, flat yield curve
and increased funding costs, coupled with a slowdown in asset
growth. Other income increased $2,000, or 0.2%, for the three
months ended September 30, 2006, to $956,000, from $954,000 for the
same period last year. For the nine months ended September 30,
2006, other income increased 1.9%, to $2.7 million. The increase
for both the three- and nine-month periods was primarily due to an
increase in income generated from bank-owned life insurance. Other
expenses decreased $60,000, or 1.2%, for the three months ended
September 30, 2006, to $5.0 million. For the nine months ended
September 30, 2006, other expenses increased $566,000, or 3.8%, to
$15.3 million, from $14.8 million for the same period last year.
For the three- and nine-month periods of 2006, there was
approximately $169,000 and $497,000, 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 19 branch offices located in Middlesex, Monmouth 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) September 30, December 31, 2006 2005 Assets: Cash and
amounts due from banks $5,108 $4,635 Interest-bearing deposits with
banks 414 1,948 Cash and cash equivalents 5,522 6,583 Investment
securities available-for-sale, at fair value 72,640 85,319
Investment securities held-to-maturity (fair value of $79,359 and
$93,575, respectively) 81,582 95,621 Federal Home Loan Bank of New
York stock, at cost 12,840 13,263 Loans receivable, net 769,135
733,183 Accrued interest receivable 3,785 3,313 Property and
equipment, net 19,504 18,570 Cash surrender value of bank-owned
life insurance 21,581 13,138 Other assets 6,655 4,897 Total assets
$993,244 $973,887 Liabilities: Deposits $635,329 $606,471 Other
borrowed funds 254,750 266,600 Advance payments by borrowers for
taxes and insurance 2,737 2,215 Accrued interest payable on
advances 674 611 Other liabilities 3,293 2,740 Total liabilities
896,783 878,637 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 - 12,509,636 in 2006 and 12,471,481 in 2005 Outstanding -
11,382,143 in 2006 and 11,545,881 in 2005 1,251 1,247 Additional
paid-in-capital 84,447 85,959 Retained earnings 33,953 32,794
Unearned ESOP shares (4,770) (5,282) Unearned RSP compensation -
(2,567) Treasury stock acquired for the RSP, at cost; 271,613 in
2006 and 363,037 in 2005 (3,086) (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 (1,209) (1,351) Total
stockholders' equity 96,461 95,250 Total liabilities and
stockholders' equity $993,244 $973,887 SYNERGY FINANCIAL GROUP,
INC. AND SUBSIDIARIES Consolidated Statements of Income (In
thousands, except per share data) (Unaudited) Three Months Ended
Nine Months Ended September 30, September 30, 2006 2005 2006 2005
Interest income: Loans, including fees $12,199 $9,868 $35,456
$27,210 Investment securities 1,577 1,934 4,998 6,448 Other 181 157
526 391 Total interest income 13,957 11,959 40,980 34,049 Interest
expense: Deposits 5,671 3,292 15,085 9,025 Borrowed funds 2,627
2,517 7,598 6,347 Total interest expense 8,298 5,809 22,683 15,372
Net interest income before provision for loan losses 5,659 6,150
18,297 18,677 Provision for loan losses 200 392 868 1,314 Net
interest income after provision for loan losses 5,459 5,758 17,429
17,363 Other income: Service charges and other fees on deposit
accounts 557 550 1,570 1,562 Net gain (loss) on sale of investments
- 8 - (26) Commissions 211 211 625 660 Other 188 185 521 468 Total
other income 956 954 2,716 2,664 Other expenses: Salaries and
employee benefits 3,080 2,784 9,204 8,261 Premises and equipment
634 765 1,967 2,226 Occupancy 589 583 1,715 1,595 Professional
services 149 165 608 559 Advertising 81 262 341 677 Other operating
443 477 1,486 1,437 Total other expenses 4,976 5,036 15,321 14,755
Income before income tax expense 1,439 1,676 4,824 5,272 Income tax
expense 458 568 1,734 1,939 Net income $981 $1,108 $3,090 $3,333
Per share of common stock: Basic earnings per share $0.09 $0.10
$0.30 $0.30 Diluted earnings per share $0.09 $0.10 $0.29 $ 0.29
Basic weighted average shares outstanding 10,379 10,711 10,350
10,993 Diluted weighted average shares outstanding 10,874 11,102
10,824 11,390
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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