Adolfo Pena

Adolfo “Al” Pena has joined the Savings Bank of Danbury’s mortgage team as a mortgage loan officer. In that role, Pena will be working out of the bank’s newest branch office located in the Plumtrees Plaza at 59 Newtown Road in Danbury.

Pena’s responsibilities will include educating and counseling borrowers, as well as the origination of mortgages.

Pena comes from Sterling Lending Group where he held the position of loan officer. He brings a wealth of knowledge and residential lending experience with him to his new position. Fluent in Spanish, his career includes positions at NewMil Bank, Nutmeg Federal Savings and Loan Association, and Prudential Insurance, where he served as financial planner.

He is currently a member of Richter Men’s Club, former president of the Hispanic Cultural Society and a former member of the Bethel Chamber of Commerce. A resident of Danbury, Pena is married and has three children.

Established in 1849, Savings Bank of Danbury is based at 220 Main St. in Danbury. Its branch offices are in Danbury, Bethel, Brookfield, New Fairfield, New Milford, Newtown, in addition to two new branch locations in Waterbury.

NewMil Announces Earnings

The board of directors of NewMil Bancorp recently announced earnings results from its fourth quarter and fiscal year ended Dec. 31, 2005.

Diluted earnings per share increased 8 percent to a record level of $2.10 for the 12-month period ended Dec. 31 of last year, compared to $1.95 for 2004. Net income increased 6 percent to $8.9 million for the 12 months that ended Dec. 31 from $8.4 million in the comparable 2004 period.

NewMil improved its net-interest income, primarily due to an increase of $90.9 million in average earning assets, which more than offset the 39-basis-point decrease in the net-interest margin to 3.52 percent, compared with 3.91 percent at Dec. 31, 2004. Meanwhile, non-interest income increased primarily from a non-recurring asset sale gain and an OREO (other real estate-owned) sale. Non-interest expense increased 1.4 percent to $17.7 million when compared to the 2004 period. The efficiency ratio was 59 percent for the 12-month period.

Diluted earnings per share increased 6 percent to 54 cents for the fourth quarter ended Dec. 31, 2005, from 51 cents for the fourth quarter ended Dec. 31, 2004. Net income increased 0.5 percent to $2.23 million for the fourth quarter of 2005, when compared to the prior year’s fourth quarter. Non-interest income increased primarily due to a gain on sale of assets and higher gains on sale of mortgage loans. Non-interest expense increased $0.4 million in the three-month period ended Dec. 31, 2005, primarily related to compensation and, to a lesser degree, for occupancy, equipment and professional fees.

NewMil’s assets increased to $873 million, up $128 million since Dec. 31, 2004. Total gross loans were $498 million at the end of 2005, an increase of $16 million, or 3.3 percent, since the end of 2004. Credit quality remains strong, as evidenced by nonperforming assets at 18 basis points of total assets as of Dec. 31, 2005. Deposits increased $29 million to $616 million from $587 million as Dec. 31, 2004.

As of Dec. 31 of last year, book value and tangible book value per common share were $12.98 and $10.99, respectively, and Tier 1 leverage and total risk-based capital ratios were 6.81 percent and 13.09 percent, respectively. Return on average shareholder’s equity was 17 percent for the fourth quarter of 2005 vs. 16 percent for the fourth quarter of 2004 and averaged 16.4 percent for all of 2005 vs. 15.6 percent for the 2004 fiscal year.