NewAlliance Bank, New Haven
New Haven-based NewAlliance Bancshares Inc. has reported a $3.86 million quarterly loss for the period ending June 30, due to the restructuring of its investment securities portfolio.
The company also announced that it will pay a quarterly dividend of 6.5 cents per share on Aug. 20 to shareholders of record on Aug. 10. The dividend is 8 percent higher than was paid for the same quarter a year ago.
“As I noted when we announced the investment securities portfolio restructuring [recently], we seized the opportunity to strengthen our net-interest margin and earnings going forward by taking a charge right now,” said Peyton R. Patterson, NewAlliance chairman, president and chief executive officer.
“We estimate that the restructuring will add 15 basis points to our 2008 net-interest margin and provide an additional 7 cents per diluted share to 2008 earnings,” Patterson said.
Total loans as of June 30 were $4.6 billion, up 20 percent from year-end 2006, in large part because of the acquisition of Westbank Corp., and by approximately $100 million from $4.5 billion at March 31, 2007. Average balances for the quarter increased in every loan category over both the same quarter a year ago and the prior quarter.
The ratio of nonperforming loans to total loans improved to 0.33 percent as of June 30 from 0.41 percent on March 31. The ratio was slightly above that of 0.26 percent on June 30, 2006, which was prior to the addition of loans from the acquisition of Westbank Corp.
SCB Reports Loss
New Haven-based Southern Connecticut Bancorp reported a net loss of $23,016 for the second quarter ended June 30. That figure compares with a net loss of $242,408 for the same period last year.
The loss is a result of various one-time expenses, including the retirement benefits of Joseph V. Ciaburri, Bancorp’s former chairman and chief executive officer. Ciaburri is now a consultant to Bancorp and The Bank of Southern Connecticut.
Total assets as of June 30 were $130 million, representing a 33 percent increase from total assets of $98 million on June 30, 2006.
“Despite the small loss in the current quarter, we are encouraged with the continuing development of our operations as we continue to increase our loans and deposits,” said Michael M. Ciaburri, president and chief executive officer. “We will continue to grow our franchise in a slow and steady fashion and try to maintain strict and necessary expense controls that will hopefully lead us to sustained and consistent profitability on a quarterly basis.”
Essex Bank Holds Election
Essex Savings Bank elected directors and trustees at the bank’s 156th annual meeting held July 23 at the Connecticut River Museum in Essex.
Incumbents John Rafal, Gary Reynolds, Carol Ryland and Richard Swan were re-elected to the board of directors for a three-year term. Incumbents Peter Bonano, Geoffrey Jacobson, Jayne Mather, Barry Maynard and Judy Preston were re-elected as trustees for a five-year term. A new member, Nicholas Clements, was elected to a one-year term as trustee and director.
“The bank has grown 5 percent to $257 million since the close of our fiscal year Sept. 30, 2006, and earnings are on track to be very close to last year’s, which was our highest earning year ever,” said Gregory R. Shook, bank president and chief executive officer.
John W. Rafal, president of Essex Financial Services, said, “The flow of new business combined with a favorable stock market growth has raised our assets under management to slightly over $2 billion.”
