NewAlliance Earnings Up 7% Over Prior Quarter.NEW HAVEN New Haven, city (1990 pop. 130,474), New Haven co., S Conn., a port of entry where the Quinnipiac and other small rivers enter Long Island Sound; inc. 1784. Firearms and ammunition, clocks and watches, tools, rubber and paper products, and textiles are among the many , Conn. -- NewAlliance Bancshares, Inc. (NYSE NYSE See: New York Stock Exchange : NAL NAL National Agricultural Library (Agricultural Research Service; US Department of Agriculture) NAL New American Library NAL National Accelerator Laboratory NAL National Aerospace Laboratory (Japan) ), the parent company of NewAlliance Bank NewAlliance Bank is the second largest Connecticut-based savings bank. It was formed in 2004 through the union of The Savings Bank of Manchester, New Haven Savings Bank, and Tolland Bank. , announced today net income of $11.8 million, or 12 cents a share for the second quarter ended June June: see month. 30, 2006, an increase of 7% over net income of $11.0 million, or 11 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , over the first quarter. Net income for the second quarter was $674,000 ($1.0 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ) lower than anticipated as a result of a change in the Federal Home Loan Bank (FHLB FHLB Federal Home Loan Bank ) dividend schedule. The Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. FHLB has indicated it expects to pay a half year dividend in the third quarter rather than a quarterly dividend in each of the second and third quarters. The Company also announced that its Board of Directors today approved a quarterly dividend of 6 cents per share for the quarter ended June 30, 2006, level with the dividend paid for the prior quarter and 9% higher than the dividend paid following the second quarter of 2005. The dividend will be paid August 14, 2006 to shareholders of record on August 4, 2006. Strengths of the second quarter included strong balance sheet growth as NewAlliance saw increases in every loan category over both the prior quarter and the same quarter a year ago, helping to push the Company's total assets past $7 billion for the first time. NewAlliance also achieved increases in every deposit category except higher cost time deposits, principally CDs, over the prior quarter. Average balances of overall checking, including NOW accounts, for the second quarter ended June 30, 2006 were 6% higher than for the same quarter a year ago. "Balance sheet growth has been a point of emphasis at NewAlliance all year and it is paying dividends in strong business momentum," said Peyton Peyton may refer to: Places
Peyton is an Irish surname:
Robert Wilson Patterson, 1850–1910, b. Chicago, grad. Williams, 1871, became (1871) a reporter on the Chicago Times and after 1873 was attached to the Chicago Tribune. , NewAlliance Chairman, President and Chief Executive Officer. "Continuing to increase core deposits and attract loan customers will be the key to success and profitability over the long run." The greatest challenge of the quarter ended June 30, 2006 was continuing pressure on the net interest margin, down to 2.77% from 2.96% from the prior quarter, largely as a result of continuing interest rate increases by the Federal Reserve Bank. The margin also declined by 7 basis points as a result of the delay in the declaration of the FHLB dividend. Interest and dividend income, driven by the increases in loan balances, increased by 16% over the second quarter of 2005 from $68.6 million to $79.8 million. However, that growth was offset by a 55% increase in interest expense for the same periods, from $24.1 million to $37.2 million, resulting in a nearly $2 million decline in net interest income. Non-interest income increased by $856,000 over the same quarter a year ago, principally because of increases in deposit service charges and trust fees. Non-interest expense for the three months ended June 30, 2006 increased by nearly $3.0 million from the same quarter a year ago but decreased by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.4 million from the prior quarter. The Company repurchased a limited number of shares during the second quarter, just over 300,000, prior to entering negotiations leading to its announcement last week of a definitive agreement to acquire Westbank Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : WBKC), headquartered in West Springfield, Massachusetts The Town of West Springfield (familiarly known as "West Side") is a city[1] in Hampden County, Massachusetts, United States. It is considered a suburb of Springfield, Massachusetts. The population was 27,899 at the 2000 census. , adjacent to current NewAlliance Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). markets. "We have said all along that while we intend to utilize three capital deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. strategies including share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. and a competitive dividend, our first choice is to make sound acquisitions such as Westbank," said Ms Patterson. "We continue to have adequate capital to continue that three-pronged Adj. 1. three-pronged - having three prongs divided - separated into parts or pieces; "opinions are divided" strategy." Credit quality remained strong at NewAlliance. The ratio of nonperforming loans to total loans for the second quarter ended June 30, 2006 was level with the first quarter at 0.26%. The ratio of nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. to total assets for the second quarter was 0.14% as compared to 0.13% for the first quarter. The Company's book value per share at June 30, 2006 was $12.11 and tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. book value per share was $7.48. Shareholders equity at June 30, 2006 was essentially even with March 31, 2006 at $1.33 billion. At June 30, 2006, NewAlliance Bancshares, the parent company of NewAlliance Bank, had $7.11 billion in assets and operated 71 banking offices. By the start of 2007, when the company anticipates completion of the acquisition of Westbank, total assets are expected to exceed $8 billion. In addition to offering a full range of consumer and commercial banking products and services, NewAlliance Bank also provides trust services and investment and insurance products and services. The Bank's website is at www.newalliancebank.com. Shareholders are particularly urged to monitor the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Company's website. A webcast and conference call to discuss the results will be held on Wednesday Wednesday: see week. , July July: see month. 26, 2006, at 10:00 a.m. Eastern Standard Time. This call is being webcast by Thomson/CCBN and can be accessed in the Investor Relations area of the Company's website. Individuals can dial in to the call at 1-866-314-5232, passcode 27808674. The international dial-in number is 1-617-213-8052. A replay of the call will be at 1-888-286-8010, passcode 18167819 or the international dial in number is 1-617-801-6888. NewAlliance will also have a podcast (iPOD broadCAST) An audio broadcast that has been converted to an MP3 file or other audio file format for playback in a digital music player or computer. The "pod" in podcast was coined from "iPod," the predominant portable, digital music player, and although podcasts are available from its website 24 hours after the call for those interested in downloading downloading - download the conference call onto individual listening devices or laptops. The webcast is also being distributed over Thomson/CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson/CCBN's individual investor center at www.fulldisclosure.com or by visiting any of the investor sites in Thomson/CCBN's Individual Investor Network. Institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. can access the call via Thomson/CCBN's password-protected event management site, StreetEvents (www.streetevents.com). Note: In discussing financial results, management may refer to certain non-GAAP (Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ) measures. The Company's management believes these non-GAAP measurements, which generally exclude the effects of charges and expenses related to the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of mergers and acquisitions and costs related to the integration of merged entities are essential to a proper understanding of the operating results of the Company's core business largely because the merger and acquisition related items and their impact on the Company's performance are difficult to predict. These non-GAAP measurements are not a substitute for operating results determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). nor do they necessarily conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" non-GAAP performance measures that may be presented by other companies. A reconciliation of GAAP and non-GAAP information is included in this release. Statements in this news release, if any, concerning future results, performance, expectations or intentions are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Actual results, performance or developments may differ materially from forward-looking statements as a result of known or unknown risks, uncertainties and other factors, including those identified from time to time in the Company's filings with the Securities and Exchange Commission, press releases and other communications. Actual results also may differ based on the Company's ability to successfully maintain and integrate customers from acquisitions. The Company intends any forward-looking statements to be covered by the Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995 and is including this statement for purposes of said safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. Except as required by applicable law or regulation, the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that occur after the date as of which such statements are made. The Company's capital strategy includes deployment of excess capital through acquisitions. The Company's results reported above reflect the impact of acquisitions completed in the 12 months ending June 30, 2006. Past and future acquisitions are expected to continue to impact the Company's results in future periods.
NewAlliance Bancshares, Inc.
Consolidated Balance Sheets (Unaudited)
June 30, March 31, December 31,
(In thousands) 2006 2006 2005
----------------------------------------------------------------------
Assets
Cash and due from banks,
noninterest bearing $ 126,925 $ 120,508 $ 127,290
Short-term investments 64,059 127,425 46,497
Investment securities
available for sale 2,188,527 2,291,386 2,363,471
Investment securities held to
maturity 333,078 109,066 91,734
Loans held for sale 3,705 795 1,222
Loans
Residential real estate 1,874,160 1,770,447 1,650,527
Commercial real estate 903,192 868,983 768,582
Commercial business 350,403 344,806 314,562
Consumer 580,360 563,832 543,035
----------------------------------------------------------------------
Total loans 3,708,115 3,548,068 3,276,706
Less allowance for loan
losses (37,958) (38,153) (35,552)
----------------------------------------------------------------------
Total loans, net 3,670,157 3,509,915 3,241,154
Premises and equipment, net 51,861 52,266 50,399
Cash surrender value of bank
owned life insurance 63,118 62,472 57,325
Goodwill 454,231 454,131 425,001
Identifiable intangible assets 53,936 56,325 52,016
Other assets 102,618 97,586 105,293
----------------------------------------------------------------------
Total assets $ 7,112,215 $ 6,881,875 $ 6,561,402
----------------------------------------------------------------------
Liabilities
Deposits
Regular savings $ 809,884 $ 791,710 $ 781,346
Money market 581,736 566,755 554,079
NOW 386,637 366,421 342,268
Demand 485,519 475,439 486,528
Time 1,690,398 1,725,763 1,633,891
----------------------------------------------------------------------
Total deposits 3,954,174 3,926,088 3,798,112
Borrowings
Federal Home Loan Bank
advances 1,581,132 1,363,480 1,191,280
Repurchase agreements 160,054 178,305 179,970
Junior subordinated
debentures 7,709 7,759 7,809
Other borrowings 1,655 1,686 1,716
Other liabilities 78,597 75,543 71,647
----------------------------------------------------------------------
Total liabilities 5,783,321 5,552,861 5,250,534
Stockholders' equity 1,328,894 1,329,014 1,310,868
----------------------------------------------------------------------
Total liabilities and
stockholders' equity $ 7,112,215 $ 6,881,875 $ 6,561,402
----------------------------------------------------------------------
NewAlliance Bancshares, Inc.
Consolidated Statements of Income (Unaudited)
(In thousands, Three Months Ended Six Months Ended
except per June 30, June 30,
share data) 2006 2005 2006 2005
----------------------------------------------------------------------
Interest and
dividend income $ 79,844 $ 68,583 $ 157,622 $ 133,237
Interest expense 37,240 24,085 70,398 44,536
----------------------------------------------------------------------
Net interest
income before
provision for
loan losses 42,604 44,498 87,224 88,701
Provision for loan
losses - - - -
----------------------------------------------------------------------
Net interest
income after
provision
for loan
losses 42,604 44,498 87,224 88,701
----------------------------------------------------------------------
Non-interest
income
Depositor
service charges 6,584 5,790 12,543 10,775
Loan and
servicing
income 481 1,089 1,237 1,908
Trust fees 1,647 710 3,312 1,275
Investment and
insurance fees 1,350 1,574 2,960 3,374
Bank owned life
insurance 653 606 1,288 1,197
Rent 832 821 1,640 1,586
Net securities
gains 4 4 4 12
Net gain on sale
of loans 164 76 538 120
Other 318 507 743 817
----------------------------------------------------------------------
Total non-
interest
income 12,033 11,177 24,265 21,064
----------------------------------------------------------------------
Non-interest
expense
Salaries and
employee
benefits 20,099 17,160 40,640 32,580
Occupancy 3,456 2,749 6,978 6,133
Furniture and
fixtures 1,483 1,697 3,269 3,257
Outside services 4,453 4,614 9,476 9,288
Advertising,
public
relations, and
sponsorships 1,572 1,473 3,133 2,534
Amortization of
identifiable
intangible
assets 2,389 2,664 4,858 5,971
Conversion and
merger related
charges 326 410 2,481 890
Other 3,200 3,290 6,552 6,915
----------------------------------------------------------------------
Total non-
interest
expense 36,978 34,057 77,387 67,568
----------------------------------------------------------------------
Income before
income taxes 17,659 21,618 34,102 42,197
----------------------------------------------------------------------
Income tax
provision 5,850 7,108 11,273 13,992
----------------------------------------------------------------------
Net income $ 11,809 $ 14,510 $ 22,829 $ 28,205
----------------------------------------------------------------------
Earnings per
share
Basic $ 0.12 $ 0.14 $ 0.23 $ 0.26
Diluted 0.12 0.14 0.23 0.26
Weighted average
shares
outstanding
Basic 100,102,013 106,933,079 100,161,660 106,902,106
Diluted 100,524,577 106,933,079 100,608,205 106,902,106
NewAlliance Bancshares, Inc.
Selected Financial Highlights (Unaudited)
Three Months Ended
(Dollars in thousands, June 30,
except per share data) 2006 2005
----------------------------------------------------------------------
Net interest income $ 42,604 $ 44,498
Net income 11,809 14,510
Shares outstanding (end of period) 109,777,926 114,158,736
Weighted average shares outstanding:
Basic 100,102,013 106,933,079
Diluted 100,524,577 106,933,079
Earnings per share:
Basic $ 0.12 $ 0.14
Diluted 0.12 0.14
Shareholders' equity (end of period) 1,328,894 1,431,922
Book value per share (end of period) 12.11 12.54
Tangible book value per share (end of
period) 7.48 8.44
Ratios & Other Information
Net interest margin (net interest
income as a % of average earnings
assets) 2.77 % 3.07 %
Net interest spread (yield on earning
assets minus yield on interest-bearing
liabilities) 2.21 2.62
Return on average assets 0.69 0.89
Return on average equity 3.56 4.10
At period end:
--------------
Tier 1 leverage capital ratio 13.61 16.09
Tangible equity/tangible assets 12.43 15.73
Nonperforming loans $ 9,663 $ 9,392
Total nonperforming assets 9,663 9,392
Nonperforming loans as a % of total
loans 0.26 % 0.29 %
Nonperforming assets as a % of total
assets 0.14 0.14
Banking offices 71 64
Financial Information & Ratios Excluding
Certain Items
(Non-GAAP Financial Information):
Noninterest income as a percent of
operating revenue (1) 22.00 % 20.10 %
Merger and conversion costs on a net
of tax basis $212 $267
Per share - basic - -
Per share - diluted - -
Noninterest expense (2) 36,652 33,647
Proforma return on average assets (3) 0.70 % 0.91 %
Proforma return on average tangible
assets (3) 0.76 0.98
Proforma return on average equity (3) 3.62 4.17
Proforma return on average tangible
equity (3) 5.88 6.24
Efficiency ratio (4) 67.65 61.11
Proforma efficiency ratio (2) (4) 67.06 60.38
(1) Excludes securities & limited partnerships net gains or losses
(2) Excludes merger and conversion costs.
(3) Excludes merger and conversion costs net of related tax benefits
(4) Excludes net securities gains and other real estate owned
expenses.
NewAlliance Bancshares, Inc.
Average Balance Sheets (Unaudited)
Three Months Ended
-------------------------------------
June 30, 2006
-------------------------------------
Average
Average Yield/
(Dollars in thousands) Balance Interest Rate
----------------------------------------------------------------------
Interest-earning assets
Loans
Residential real estate $ 1,822,346 $ 24,188 5.31 %
Commercial real estate 882,643 14,356 6.51
Commercial business 348,246 6,190 7.11
Consumer 567,070 9,002 6.35
----------------------------------------------------------------------
Total Loans 3,620,305 53,736 5.94
Short-term investments 76,811 941 4.90
Investment securities 2,451,351 25,167 4.11
----------------------------------------------------------------------
Total interest-earning assets 6,148,467 $ 79,844 5.19 %
Non-interest-earning assets 726,965
------------
Total assets $ 6,875,432
============
Interest-bearing liabilities
Deposits
Money market $ 570,112 $ 3,772 2.65 %
NOW 361,283 439 0.49
Savings 799,766 1,864 0.93
Time 1,701,553 15,576 3.66
--------------------------------------------------------------------
Total interest-bearing
deposits 3,432,714 21,651 2.52
Repurchase agreements 165,419 1,288 3.11
FHLB advances and other
borrowings 1,408,924 14,301 4.06
--------------------------------------------------------------------
Total interest-bearing-
liabilities 5,007,057 37,240 2.98 %
Non-interest-bearing demand
deposits 471,047
Other non-interest-bearing
liabilities 70,200
------------
Total liabilities 5,548,304
Equity 1,327,128
------------
Total liabilities and
equity $ 6,875,432
============
Net interest-earning assets $ 1,141,410
============
Net interest income $ 42,604
============
Interest rate spread 2.21 %
Net interest margin (net
interest income as a
percentage of total
interest-earning assets) 2.77 %
Ratio of total interest-earning
assets to total interest-
bearing liabilities 122.80 %
Three Months Ended
-------------------------------------
June 30, 2005
-------------------------------------
Average
Average Yield/
(Dollars in thousands) Balance Interest Rate
----------------------------------------------------------------------
Interest-earning assets
Loans
Residential real estate $ 1,577,179 $ 20,344 5.16 %
Commercial real estate 733,870 11,058 6.03
Commercial business 318,653 5,006 6.28
Consumer 523,279 7,012 5.36
----------------------------------------------------------------------
Total Loans 3,152,981 43,420 5.51
Short-term investments 40,537 315 3.11
Investment securities 2,608,068 24,848 3.81
----------------------------------------------------------------------
Total interest-earning assets 5,801,586 $ 68,583 4.73 %
Non-interest-earning assets 699,594
------------
Total assets $ 6,501,180
============
Interest-bearing liabilities
Deposits
Money market $ 768,396 $ 3,599 1.87 %
NOW 335,598 148 0.18
Savings 895,778 1,066 0.48
Time 1,292,440 8,334 2.58
--------------------------------------------------------------------
Total interest-bearing
deposits 3,292,212 13,147 1.60
Repurchase agreements 189,607 1,008 2.13
FHLB advances and other
borrowings 1,078,127 9,930 3.68
--------------------------------------------------------------------
Total interest-bearing-
liabilities 4,559,946 24,085 2.11 %
Non-interest-bearing demand
deposits 448,120
Other non-interest-bearing
liabilities 75,781
------------
Total liabilities 5,083,847
Equity 1,417,333
------------
Total liabilities and
equity $ 6,501,180
============
Net interest-earning assets $ 1,241,640
============
Net interest income $ 44,498
============
Interest rate spread 2.62 %
Net interest margin (net
interest income as a
percentage of total
interest-earning assets) 3.07 %
Ratio of total interest-earning
assets to total interest-
bearing liabilities 127.23 %
NewAlliance Bancshares, Inc.
Average Balance Sheets (Unaudited)
Six Months Ended
-------------------------------------
June 30, 2006
-------------------------------------
Average
Average Yield/
(Dollars in thousands) Balance Interest Rate
----------------------------------------------------------------------
Interest-earning assets
Loans
Residential real estate $ 1,762,800 $ 46,573 5.28 %
Commercial real estate 877,738 28,414 6.47
Commercial business 346,249 12,231 7.06
Consumer 558,399 17,491 6.26
----------------------------------------------------------------------
Total Loans 3,545,186 104,709 5.91
Short-term investments 66,644 1,560 4.68
Investment securities 2,478,746 51,353 4.14
----------------------------------------------------------------------
Total interest-earning assets 6,090,576 $ 157,622 5.18 %
Non-interest-earning assets 730,171
------------
Total assets $ 6,820,747
============
Interest-bearing liabilities
Deposits
Money market $ 572,063 $ 6,799 2.38 %
NOW 351,908 668 0.38
Savings 793,052 3,185 0.80
Time 1,700,985 30,005 3.53
--------------------------------------------------------------------
Total interest-bearing
deposits 3,418,008 40,657 2.38
Repurchase agreements 171,752 2,549 2.97
FHLB advances and other
borrowings 1,357,736 27,192 4.01
--------------------------------------------------------------------
Total interest-bearing-
liabilities 4,947,496 70,398 2.85 %
Non-interest-bearing demand
deposits 475,477
Other non-interest-bearing
liabilities 68,527
------------
Total liabilities 5,491,500
Equity 1,329,247
------------
Total liabilities and
equity $ 6,820,747
============
Net interest-earning assets $ 1,143,080
============
Net interest income $ 87,224
============
Interest rate spread 2.33 %
Net interest margin (net
interest income as a
percentage of total
interest-earning assets) 2.86 %
Ratio of total interest-earning
assets to total interest-
bearing liabilities 123.10 %
Six Months Ended
-------------------------------------
June 30, 2005
-------------------------------------
Average
Average Yield/
(Dollars in thousands) Balance Interest Rate
----------------------------------------------------------------------
Interest-earning assets
Loans
Residential real estate $ 1,571,001 $ 40,710 5.18 %
Commercial real estate 731,310 21,721 5.94
Commercial business 318,710 9,524 5.98
Consumer 518,637 13,543 5.22
----------------------------------------------------------------------
Total Loans 3,139,658 85,498 5.45
Short-term investments 58,213 738 2.54
Investment securities 2,511,459 47,001 3.74
----------------------------------------------------------------------
Total interest-earning assets 5,709,330 $ 133,237 4.67 %
Non-interest-earning assets 708,086
------------
Total assets $ 6,417,416
============
Interest-bearing liabilities
Deposits
Money market $ 765,550 $ 6,483 1.69 %
NOW 334,609 303 0.18
Savings 905,935 2,154 0.48
Time 1,248,985 14,999 2.40
--------------------------------------------------------------------
Total interest-bearing
deposits 3,255,079 23,939 1.47
Repurchase agreements 192,058 1,759 1.83
FHLB advances and other
borrowings 1,036,677 18,838 3.63
--------------------------------------------------------------------
Total interest-bearing-
liabilities 4,483,814 44,536 1.99 %
Non-interest-bearing demand
deposits 440,337
Other non-interest-bearing
liabilities 75,741
------------
Total liabilities 4,999,892
Equity 1,417,524
------------
Total liabilities and
equity $ 6,417,416
============
Net interest-earning assets $ 1,225,516
============
Net interest income $ 88,701
============
Interest rate spread 2.68 %
Net interest margin (net
interest income as a
percentage of total
interest-earning assets) 3.11 %
Ratio of total interest-earning
assets to total interest-
bearing liabilities 127.33 %
NewAlliance Bancshares, Inc.
Average Balance Sheets (Unaudited)
Three Months Ended
-------------------------------------
June 30, 2006
-------------------------------------
Average
Average Yield/
(Dollars in thousands) Balance Interest Rate
----------------------------------------------------------------------
Interest-earning assets
Loans
Residential real estate $ 1,822,346 $ 24,188 5.31 %
Commercial real estate 882,643 14,356 6.51
Commercial business 348,246 6,190 7.11
Consumer 567,070 9,002 6.35
----------------------------------------------------------------------
Total Loans 3,620,305 53,736 5.94
Short-term investments 76,811 941 4.90
Investment securities 2,451,351 25,167 4.11
----------------------------------------------------------------------
Total interest-earning assets 6,148,467 $ 79,844 5.19 %
Non-interest-earning assets 726,965
------------
Total assets $ 6,875,432
============
Interest-bearing liabilities
Deposits
Money market $ 570,112 $ 3,772 2.65 %
NOW 361,283 439 0.49
Savings 799,766 1,864 0.93
Time 1,701,553 15,576 3.66
--------------------------------------------------------------------
Total interest-bearing
deposits 3,432,714 21,651 2.52
Repurchase agreements 165,419 1,288 3.11
FHLB advances and other
borrowings 1,408,924 14,301 4.06
--------------------------------------------------------------------
Total interest-bearing-
liabilities 5,007,057 37,240 2.98 %
Non-interest-bearing demand
deposits 471,047
Other non-interest-bearing
liabilities 70,200
------------
Total liabilities 5,548,304
Equity 1,327,128
------------
Total liabilities and
equity $ 6,875,432
============
Net interest-earning assets $ 1,141,410
============
Net interest income $ 42,604
============
Interest rate spread 2.21 %
Net interest margin (net
interest income as a
percentage of total
interest-earning assets) 2.77 %
Ratio of total interest-earning
assets to total interest-
bearing liabilities 122.80 %
Three Months Ended
-------------------------------------
March 31, 2006
-------------------------------------
Average
Average Yield/
(Dollars in thousands) Balance Interest Rate
----------------------------------------------------------------------
Interest-earning assets
Loans
Residential real estate $ 1,702,592 $ 22,385 5.26 %
Commercial real estate 872,779 14,057 6.44
Commercial business 344,230 6,041 7.02
Consumer 549,632 8,490 6.18
----------------------------------------------------------------------
Total Loans 3,469,233 50,973 5.88
Short-term investments 56,364 619 4.39
Investment securities 2,506,445 26,186 4.18
----------------------------------------------------------------------
Total interest-earning assets 6,032,042 $ 77,778 5.16 %
Non-interest-earning assets 733,466
------------
Total assets $ 6,765,508
============
Interest-bearing liabilities
Deposits
Money market $ 574,035 $ 3,027 2.11 %
NOW 342,429 229 0.27
Savings 786,263 1,321 0.67
Time 1,700,411 14,430 3.39
--------------------------------------------------------------------
Total interest-bearing
deposits 3,403,138 19,007 2.23
Repurchase agreements 178,155 1,262 2.83
FHLB advances and other
borrowings 1,305,979 12,890 3.95
--------------------------------------------------------------------
Total interest-bearing-
liabilities 4,887,272 33,159 2.71 %
Non-interest-bearing demand
deposits 480,962
Other non-interest-bearing
liabilities 65,864
------------
Total liabilities 5,434,098
Equity 1,331,410
------------
Total liabilities and
equity $ 6,765,508
============
Net interest-earning assets $ 1,144,770
============
Net interest income $ 44,619
============
Interest rate spread 2.45 %
Net interest margin (net
interest income as a
percentage of total
interest-earning assets) 2.96 %
Ratio of total interest-earning
assets to total interest-
bearing liabilities 123.42 %
NewAlliance Bancshares, Inc.
Asset Quality (Unaudited)
June 30, March 31,
(Dollars in thousands) 2006 2006
----------------------------------------------------------------------
Nonperforming assets
Residential real estate $ 709 $ 901
Commercial real estate 5,908 4,326
Commercial business 2,951 3,628
Consumer 95 212
----------------------------------------------------------------------
Total nonperforming loans 9,663 9,067
Other nonperforming assets, net - 153
----------------------------------------------------------------------
Total nonperforming assets $ 9,663 $ 9,220
----------------------------------------------------------------------
Allowance for loan losses $ 37,958 $ 38,153
----------------------------------------------------------------------
Three Months Ended
----------------------------
June 30, March 31,
2006 2006
----------------------------------------------------------------------
Net loan (recoveries) charge-offs
Residential real estate $ (4) $ (143)
Commercial real estate 104 (13)
----------------------------------------------------------------------
Total real estate 100 (156)
Commercial business 33 (266)
Consumer 62 45
----------------------------------------------------------------------
Total net charge-offs (recoveries) $ 195 $ (377)
----------------------------------------------------------------------
At or For The
Three Months Ended
----------------------------
June 30, March 31,
2006 2006
----------------------------------------------------------------------
Ratios
Allowance for loan losses to total loans 1.02 % 1.08 %
Allowance for loan losses to
nonperforming loans 392.82 420.79
Nonperforming loans to total loans 0.26 0.26
Nonperforming assets to total assets 0.14 0.13
Net charge-offs (recoveries) to average
loans (annualized) 0.02 (0.04)
NewAlliance Bancshares, Inc.
Reconciliation Table-Non-GAAP Financial Information (Unaudited)
Three Six
(Dollars in thousands, Months Ended Months Ended
except per share data) June 30, 2006 June 30, 2006
----------------------------------------------------------------------
Net income, GAAP $ 11,809 $ 22,829
Add back merger and conversion costs,
net of tax 212 1,613
Proforma net income $ 12,021 $ 24,442
----------------------------------------------------------------------
Basic income per share, GAAP $ 0.12 $ 0.23
Effects of merger and conversion costs,
net of tax - 0.01
Proforma basic earnings per share $ 0.12 $ 0.24
----------------------------------------------------------------------
Diluted earnings per share, GAAP $ 0.12 $ 0.23
Effects of merger and conversion costs,
net of tax - 0.01
Proforma diluted earnings per share $ 0.12 $ 0.24
----------------------------------------------------------------------
Return on average assets, GAAP 0.69 % 0.67 %
Effects of merger and conversion costs,
net of tax 0.01 0.05
Proforma return on average assets 0.70 % 0.72 %
----------------------------------------------------------------------
Return on average equity, GAAP 3.56 % 3.43 %
Effects of merger and conversion costs,
net of tax 0.06 0.25
Proforma return on average equity 3.62 % 3.68 %
----------------------------------------------------------------------
Efficiency ratio 67.65 % 69.27 %
Effects of merger and conversion costs 0.59 2.23
----------------------------------------------------------------------
Proforma efficiency ratio 67.06 % 67.04 %
----------------------------------------------------------------------
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