EX-99 3 nmex99.txt Exhibit 99.1 Contact: Francis J. Wiatr Chairman, President and CEO (860) 355-7602 fwiatr@newmilbank.com April 21, 2004 For Immediate Release NewMil Bancorp Reports 15% Increase in Earnings Per Share for First Quarter 2004 New Milford, CT-(April 21, 2004) The Board of Directors of NewMil Bancorp, Inc. (NASDAQ/NM:NMIL) today announced results of its first quarter ended March 31, 2004. Diluted earnings per share increased 15% to $0.47 for the first quarter ended March 31, 2004 from $0.41 for the first quarter ended March 31, 2003. Net income increased 11% to $2.0 million for the first quarter of 2004, compared with $1.8 million for the first quarter ended 2003. The increase was achieved through a variety of factors, the most important of which was an increase in net interest income. Net interest income increased $0.5 million, or 9% as a result of a $44 million increase in average earning assets and a 7 basis point increase in the net interest margin to 4.01% from 3.94% in 2003. The increase in earning assets is due to internal growth. Non-interest expense increased $0.3 million, or 8% for the first quarter of 2004, primarily due to higher compensation, marketing and professional services. Credit quality remains strong as evidenced by nonperforming assets at 21 basis points of total assets at March 31, 2004. The return on average shareholders equity was 15% for the first quarter. Francis J. Wiatr, NewMil's Chairman, President and CEO, noted, "We are very pleased with our results for the quarter. Our net interest margin has remained strong despite the continued low interest rate environment. Our core low cost deposits continued to improve as a percentage of total deposits, primarily because of the strength of our commercial lending relationships and our focus on retail deposits." "As we see clearer signs that the economy is recovering, our approach to the marketplace is to deliver a wide range of products to individuals and business, backed up by superior service. We recently introduced a new express loan program for small business with guaranteed 24-hour turn around. This product complements our extensive commercial loan offerings and we anticipate a significant volume over the next year. Importantly, we also expect deposit growth from this initiative, made more attractive by the launch of our free checking plan for small business." "Our knowledge of the local marketplace and our commitment to our communities place us in the best possible position to grow, especially as many customers again experience the disruption associated with still another mega-bank consolidation." "While we are working hard to win new banking relationships, both personal and business, we also have plans to continue to develop our banking franchise in high growth markets in and around our existing branch configuration. We remain optimistic about future earnings prospects and our strong position in Connecticut's Litchfield and Northern Fairfield County marketplace." At March 31, 2004 NewMil had total assets of $714 million, up $10 million since December 31, 2003. For the three month period deposits were stable at $559 million. At March 31, 2004, book value and tangible book value per common share were $12.90 and $10.85, respectively, and tier 1 leverage and total risk-based capital ratios were 7.61% and 13.78%, respectively. On February 25, 2004 the Board of Directors declared a quarterly dividend of 17 cents per common share, payable on May 17, 2004 to shareholders of record on May 3, 2004. NewMil Bancorp is the parent company of NewMil Bank, which has served western Connecticut since 1858, and operates 19 full-service banking offices and one special needs branch. Financial highlights are attached. ***** Statements in this news release concerning future results, performance, expectations or intentions are forward-looking statements. 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 other filings with the Securities and Exchange Commission, press releases and other communications. NewMil Bancorp, Inc SELECTED CONSOLIDATED FINANCIAL DATA (in thousands except ratios and per share amounts) Three month period ended March 31 STATEMENT OF INCOME 2004 2003 ------ ------ Interest and dividend income $ 8,831 $ 8,739 Interest expense 2,321 2,778 Net interest income 6,510 5,961 Provision for loan losses - - Non-interest income Service fees on deposit accounts 684 547 Gains on sales of mortgage loans 40 72 Other non-interest income 193 206 Total non-interest income 917 825 Non-interest expense Compensation 2,466 2,345 Occupancy and equipment 730 717 Postage and telecommunication 131 133 Professional services, collection & OREO 297 173 Printing and office supplies 101 98 Marketing 121 45 Service bureau EDP 94 107 Amortization of intangible assets 49 61 Other 476 453 Total non-interest expense 4,465 4,132 Income before income taxes 2,962 2,654 Provision for income taxes 939 827 Net income $ 2,023 $ 1,827 Per common share Diluted earnings $ 0.47 $ 0.41 Basic earnings 0.48 0.43 Cash dividends 0.15 0.15 Statistical data Net interest margin 4.01% 3.94% Efficiency ratio 60.12 60.89 Return on average assets 1.16 1.11 Return on average common shareholders' equity 15.16 13.44 Weighted average equivalent common shares outstanding, diluted 4,334 4,450 NewMil Bancorp, Inc. SELECTED CONSOLIDATED FINANCIAL DATA (in thousands except ratios and per share amounts) March 31, March 31, December 31, FINANCIAL CONDITION 2004 2003 2003 --------- --------- ------------ Total assets $714,370 $685,163 $704,042 Loans, net 452,301 389,544 449,651 Allowance for loan losses 5,178 5,249 5,198 Securities 199,087 197,432 199,101 Cash and cash equivalents 30,460 65,878 22,524 Intangible assets 8,650 8,882 8,700 Deposits 558,841 553,480 558,168 Federal Home Loan Bank advances 75,546 53,040 70,247 Repurchase agreements 11,066 7,395 9,317 Long term debt 9,761 9,701 9,746 Shareholders' equity 54,424 55,003 52,306 Non-performing assets 1,518 1,438 1,262 Deposits Demand (non-interest bearing)$ 49,178 $ 46,263 $ 49,813 NOW accounts 78,025 71,514 76,524 Money market 156,872 149,921 155,911 Savings and other 85,073 82,407 84,660 Certificates of deposit 189,693 203,375 191,260 Total deposits 558,841 553,480 558,168 Per common share Book value $ 12.90 $ 13.01 $ 12.78 Tangible book value 10.85 10.91 10.65 Statistical data Non-performing assets to total assets 0.21% 0.21% 0.18% Allowance for loan losses to total loans 1.13 1.33 1.14 Allowance for loan losses to non-performing loans 341.11 365.02 411.89 Common shareholders' equity to assets 7.62 8.03 7.43 Tangible common shareholders' equity to assets 6.41 6.73 6.19 Tier 1 leverage capital 7.61 7.71 7.39 Total risk-based capital 13.78 14.30 13.23 Common shares outstanding, net (period end) 4,220 4,229 4,093