New Haven-based NewAlliance Bancshares saw its earnings jump 42 percent in the first quarter, helped largely by an increase in interest payments on loans and investments.
The holding company for NewAlliance Bank announced Tuesday net income for the quarter ended March 31 of $16.4 million, or 17 cents per diluted share. This compares to the $11.6 million, or 12 cents per diluted share, the company earned in the first quarter of 2009.
During the quarter NewAlliance, with $8.5 billion in assets and 87 branches, also saw record revenues of $71 million.
“Our first quarter results reflect our sound banking fundamentals and our core earnings momentum,” said Peyton R. Patterson, chairman, president and CEO of NewAlliance. “We are very pleased with the success of the initiatives undertaken in 2009 and in the first quarter of 2010 to further improve our performance as reflected in record revenues and the growth of the net interest margin.”
The board of directors also voted today, to pay a quarterly dividend of 7 cents per share to shareholders of record on May 10.
NewAlliance brought in $55.6 million, in net interest income during the quarter, a $7.6 million increase from the year ago period.
Net interest margin — the difference between what the bank earns on loans and pays on deposits — increased 15 basis points to 2.97 percent
The company also increased deposits and loan originations in the quarter.
The weak economy, however, did not leave the bank totally unscathed. NewAlliance’s total delinquencies inched up to 1.77 percent of the company’s total assets and the bank did charge off $3.1 million in bad assets.
NewAlliance also set aside $4.8 million to cover loans that are expected to go bad in the future.
