NewportFed 1Q profit increases to $259,000

NEWPORT – Newport Bancorp Inc., the holding company for Newport Federal Savings Bank, has reported a first-quarter profit of $259,000 or 6 cents per share compared with net income of $25,000 in the first quarter of 2006, before the company went public.
Net interest and dividend income increased 15.6 percent to $2.4 million from the year-ago period. Non-interest income increased 42.7 percent year-over-year to $555,000, fueled by growth in customer-service fees and bank-owned life insurance.
“Despite a flat yield curve, which has caused a prolonged period of interest-rate difficulties, we have managed to maintain and … improve our net interest margin by 34 basis points when compared to the prior-year quarter,” said Kevin McCarthy, NewportFed president and CEO.
Assets increased 4.5 percent over the quarter to $303.6 million on March 31 from $290.4 million on Dec. 31. Net loans increased 3.3 percent over the quarter, and cash and cash equivalents increased by 17.1 percent.