New England Bancshares boosted lending and reported positive earnings growth in fourth quarter of 2009, despite the broader economic uncertainty.
The Enfield-based holding company for New England Bank reported a net income for the quarter ended Dec. 31, of $856,000, or 14 cents per diluted share, compared to $747,000, or 13 cents per diluted share, in the year ago period.
Net income for the nine months ended Dec. 31, totaled $976,000 compared to a net loss of $795,000 for the same period last year.
The improved earnings were driven by the banks’ increase in net interest income, which grew $1 million over the past year to $5 million.
The bank also earned $175,000 selling Riverside Investments, its advisory and investment services division.
“The banking industry continues to face challenges,” said David O’Connor, president and CEO of the bank. “New England Bank has proactively been working through these challenges and beginning to see the positive results of our hard work.”
During the nine-month period, New England Bank also set aside $2 million for bad loans, but the company’s loans past due as a percentage of its total assets declined from 2.1 percent in March to 1.8 percent at the end of December.
Between March 31 and Dec. 31, its assets, net loans and deposits each grew by 17.6 percent, 17.5 percent and 23.8 percent respectively.
Salisbury Bank Boosts Earnings
Salisbury Bancorp nearly doubled its annual earnings in 2009, despite a 23 percent dip in fourth-quarter profits.
The holding company for Lakeville-based Salisbury Bank and Trust Co. saw a decline in delinquent borrowers and higher net interest income during the year, which drove the improved results.
The company reported net income available to common shareholders for the year ended Dec. 31, of $2.1 million, or $1.25 per common share, compared with $1.1 million, or 66 cents a share, in the year ago period.
“Despite the challenges presented by current economic conditions, income from core operations remains stable,” said President and CEO Richard J. Cantele Jr. “I believe the fundamentals of our core business remain solid.”
Non-interest income increased $2.2 million for 2009, helped largely by lower investment losses.
In the fourth quarter, the bank’s earnings fell 23 percent to $734,000, primarily due to the recognition of a tax benefit in the fourth quarter of 2008 arising from a Freddie Mac preferred stock loss.
Overall, Salisbury’s assets grew $67 million to $562 million last year and its total net loans, including loans held for sale, grew $31 million, or 11 percent, to $328 million.
Deposits grew $73 million to $418 million, helped in part by the bank’s acquisition of $11 million in deposits from the Canaan branch of Webster Bank in December.
Enfield Plaza Finds Financing
A portion of the Enfield shopping center Freshwater-Stateline Plaza has secured an $18.2 million lifeline.
The 425,000-square-foot shopping center is anchored by Costco, Home Depot, Dick’s Sporting Goods, and Dollar Tree, and the new loan is secured by the entire center, with the exception of the Home Depot property.
Centro Properties Group owns the property secured by the loan, which is in the form of a senior note.
A real estate investment advisor underwrote the deal on behalf of one of its institutional clients.
Freshwater-Stateline Plaza is located 20 miles north of Hartford, and sits adjacent to Enfield Square Mall, a 787,000-square-foot retail center that is also owned by Centro.
The two centers form a major retail hub for the greater Hartford-Springfield area.
Cushman & Wakefield Sonnenblick Goldman served as the advisor in the deal.
Greg Bordonaro is a Hartford Business Journal staff writer.
