NEWPORT – Newport Bancorp Inc., the holding company for Newport Federal Savings Co., on Friday posted $439,000 in net income for the second quarter, down 12.4 percent from the $501,000 report a year earlier.
Despite the drop in profits, earnings per diluted share of 13 cents still beat the 10-cent forecast of the one analyst who follows Newport Bancorp, Frank Schiraldi of Sandler O’Neill & Partners L.P., according to Yahoo!Finance.
Newport Bancorp finished the first six months of 2011 with $740,000 of net income, up from the $602,000 posted in the first half of 2010.
During the 2011 second quarter, the bank’s interest and noninterest income was $5.99 million, down 4.1 percent from $6.25 million in the same period a year earlier.
Meanwhile, Newport Bancorp raised its loan-loss provision – money set aside in anticipation of loan defaults – for the second quarter to $207,000, up from $80,000 in the same period of 2010.
“The provision increased during the first half of 2011 compared to the first half of 2010, due to an increase in problem loans and charge-offs, partially offset by a decrease in the loan portfolio,” the bank said in a statement.
Nonperforming assets totaled $1.3 million – or 0.29 percent of total assets – as of June 30, compared with $208,000 – or 0.05 percent of total assets – at the end of 2010.
The bank said the nonperforming assets consisted of two commercial real estate mortgage loans totaling $1.1 million, one $21,000 home equity loan and $195,000 of foreclosed real estate.
Net charge-offs – loans the bank has deemed uncollectible – totaled $246,000 for the second quarter, compared with $25,000 for the same period a year earlier.
Newport Bancorp’s total assets climbed in the first six months of 2011, from $449.69 million as of Dec. 31 to $453.91 million as of June 30.
Deposits were also on the rise in the same period, growing from $261.05 million to $262.32 million in the first half of the year.
