-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TIAsdm3JqnSr9lSaE9bnf1zIkRuPSM4cZoG2Q3qKcLgRT1w1uLSYi1vSaomOP1/3 o4pWYWBvLLsA/G6FHe0XVQ== 0000946275-07-000356.txt : 20070426 0000946275-07-000356.hdr.sgml : 20070426 20070426112937 ACCESSION NUMBER: 0000946275-07-000356 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070425 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070426 DATE AS OF CHANGE: 20070426 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYNERGY FINANCIAL GROUP INC /NJ/ CENTRAL INDEX KEY: 0001263766 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 522413926 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-50467 FILM NUMBER: 07789935 BUSINESS ADDRESS: STREET 1: 310 NORTH AVE EAST CITY: CRANFORD STATE: NJ ZIP: 07016 BUSINESS PHONE: 8006933838 8-K 1 f8k_042507-0207.txt FORM SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20552 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 April 25, 2007 --------------------------------- Date of Report (Date of earliest event reported) Synergy Financial Group, Inc. ------------------------------------------------------ (Exact name of Registrant as specified in its Charter) New Jersey 0-50467 52-2413926 - ---------------------------- ---------- ------------- (State or other jurisdiction (File No.) (IRS Employer of incorporation) Identification Number) 310 North Avenue East, Cranford, New Jersey 07016 - ------------------------------------------- ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (800) 693-3838 -------------- Not Applicable -------------- (Former name or former address, if changed since last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act SYNERGY FINANCIAL GROUP, INC. INFORMATION TO BE INCLUDED IN REPORT Item 2.02 Results of Operations and Financial Condition On April 25, 2007, the Registrant issued a press release to report earnings for the quarter ended March 31, 2007. A copy of the press release is furnished with this Form 8-K as Exhibit 99. Item 9.01 Financial Statements and Exhibits (d) Exhibits: Press Release dated April 25, 2007 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. SYNERGY FINANCIAL GROUP, INC. Date: April 26, 2007 By: /s/A. Richard Abrahamian --------------------------- A. Richard Abrahamian Senior Vice President and Chief Financial Officer EX-99 2 ex-99.txt PRESS RELEASE FOR IMMEDIATE RELEASE April 25, 2007 For further information contact: Kevin M. McCloskey Senior Vice President and Chief Operating Officer Synergy Financial Group, Inc. (800) 693-3838, extension 3292 Synergy Financial Group, Inc. Announces First Quarter, 2007 Earnings Cranford, New Jersey, April 25, 2007 - John S. Fiore, President and Chief Executive Officer of Synergy Financial Group, Inc. (NASDAQ: SYNF) (the "Company"), the holding company of Synergy Bank and Synergy Financial Services, Inc., today announced net income for the three-month period ended March 31, 2007 of $841 thousand, or $0.08 per diluted share, compared to $1.049 million, or $0.10 per diluted share, for the same period last year. Total assets were $966.5 million on March 31, 2007, a decrease of 2.0%, or $19.8 million, from $986.3 million on December 31, 2006. The decrease was primarily attributable to a decrease of $10.4 million in net loans, coupled with a decline of $8.0 million in investment securities. Net loans decreased 1.4%, to $754.5 million, on March 31, 2007, from $765.0 million on December 31, 2006. Over the past year, the Company has reduced the origination of automobile loans and deployed its cash into higher-yielding, commercial-based products. Automobile loans declined $15.8 million from December 31, 2006, while multi-family/non-residential loans and commercial loans increased $11.5 million, collectively. On March 31, 2007, total loans were comprised of 44.1% in multi-family/non-residential loans, 17.0% in consumer loans, 16.2% in single-family real estate loans, 14.1% in home equity loans, 7.5% in commercial and industrial loans and 1.1% in construction loans. On March 31, 2007, the allowance for loan losses was $5.9 million, compared to $6.0 million on December 31, 2006. The ratios of the allowance for loan losses to total loans and of non- - More - performing assets to total assets were 0.78% and 0.04%, respectively, on both March 31, 2007 and December 31, 2006. Deposits reached $677.7 million on March 31, 2007, an increase of $31.9 million, or 4.9%, from the $645.8 million reported on December 31, 2006. Core deposits, which consist of checking, savings, and money market accounts, increased $40.8 million, or 17.7%, while certificates of deposit decreased by $8.9 million, or 2.1%, from the $415.4 million reported at year-end 2006. During the same period, Federal Home Loan Bank borrowings declined $52.3 million, or 22.2%, to $183.4 million on March 31, 2007 due primarily to the growth in deposits and lower loan volume. Stockholders' equity totaled $99.6 million on March 31, 2007, an increase of $1.1 million, or 1.1%, from $98.5 million on December 31, 2006. The increase was primarily attributable to net income for the period and stock benefit plan activity, partially offset by the March 28, 2007 declaration of a quarterly cash dividend of $0.06 per common share, which is payable on April 27, 2007 to stockholders of record on April 13, 2007. Net interest income declined $936,000 or 14.7%, for the three months ended March 31, 2007, to $5.4 million, from $6.4 million for the same period last year. The year-over-year decline was the result of margin compression stemming from the flat to inverted yield curve, increased funding costs and a slowdown in asset growth. Compared to the fourth quarter of 2006, net interest income increased $3,000. The net interest margin for the first quarter of 2007 increased to 2.37%, from 2.34% for the fourth quarter of 2006, but was down 36 basis points from the 2.73% for the first quarter of 2006. Other income increased $143,000, or 16.3%, for the three months ended March 31, 2007, to $1,019,000, from $876,000 for the same period last year. The change was primarily due to an increase in income from bank-owned life insurance. Other expenses declined $83,000, or 1.6%, for the three months ended March 31, 2007, to $5.1 million, from $5.2 million for the same period last year. The decrease was primarily attributable to reduced spending, as the Company remains focused on controlling costs. - More - About Synergy Financial Group, Inc. Synergy Financial Group, Inc. is the holding company for Synergy Bank and Synergy Financial Services, Inc. The Company is a financial services company that provides a diversified line of products and services to individuals and small- to mid-size businesses. Synergy offers consumer banking, mortgage lending, commercial banking, consumer finance, Internet banking, and financial services through a network of 19 branch offices located in Middlesex, Monmouth and Union counties in New Jersey. Forward-Looking Statements This press release contains forward-looking statements, which are not historical facts and pertain to future operating results. These forward-looking statements are within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, expectations, and intentions and other statements contained in this press release that are not historical facts. When used in this press release, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," or words of similar meaning, or future or conditional verbs, such as "will," "would," "should," "could," or "may" are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic, and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements. We do not undertake to update any forward-looking statement that may be made by the Company from time to time. - More - SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) (Unaudited)
March 31, December 31, 2007 2006 --------- --------- Assets: Cash and amounts due from banks $ 5,676 $ 5,673 Interest-bearing deposits with banks 5,348 4,458 --------- --------- Cash and cash equivalents 11,024 10,131 Investment securities available-for-sale, at fair value 63,615 68,417 Investment securities held-to-maturity (fair value of $73,310 and $76,263, respectively) 74,737 77,917 Federal Home Loan Bank of New York stock, at cost 9,629 11,981 Loans receivable, net 754,467 765,001 Accrued interest receivable 3,882 3,848 Property and equipment, net 20,602 20,106 Cash surrender value of bank-owned life insurance 22,043 21,816 Other assets 6,541 7,109 --------- --------- Total assets $ 966,540 $ 986,326 ========= ========= Liabilities: Deposits $ 677,687 $ 645,816 Other borrowed funds 183,400 235,675 Advance payments by borrowers for taxes and insurance 2,694 2,701 Accrued interest payable on advances 608 651 Other liabilities 2,542 2,983 --------- --------- Total liabilities 866,931 887,826 --------- --------- Stockholders' equity: Preferred stock; $.10 par value, 5,000,000 shares authorized; issued and outstanding - none - - Common stock; $.10 par value, 20,000,000 shares authorized; Issued - 12,509,636 in 2007 and 2006 Outstanding - 11,382,143 in 2007 and 2006 1,251 1,251 Additional paid-in-capital 85,938 85,381 Retained earnings 34,784 34,582 Unearned ESOP shares (4,430) (4,600) Treasury stock acquired for the RSP, at cost; 266,223 in 2007 and 271,613 in 2006 (3,024) (3,086) Treasury stock, at cost; 1,127,493 in 2007 and 2006 (14,125) (14,125) Accumulated other comprehensive loss, net (785) (903) --------- --------- Total stockholders' equity 99,609 98,500 --------- --------- Total liabilities and stockholders' equity $ 966,540 $ 986,326 ========= =========
- More - SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income (In thousands, except per share data) (Unaudited) Three Months Ended March 31, ------------------ 2007 2006 ------- ------- Interest income: Loans, including fees $12,455 $11,340 Investment securities 1,452 1,763 Other 223 173 ------- ------- Total interest income 14,130 13,276 ------- ------- Interest expense: Deposits 6,215 4,357 Other borrowed funds 2,474 2,542 ------- ------- Total interest expense 8,689 6,899 ------- ------- Net interest income before provision for loan losses 5,441 6,377 Provision for loan losses 56 416 ------- ------- Net interest income after provision for loan losses 5,385 5,961 ------- ------- Other income: Service charges and other fees on deposit accounts 507 494 Commissions 226 230 Other 286 152 ------- ------- Total other income 1,019 876 ------- ------- Other expenses: Salaries and employee benefits 3,176 3,077 Premises and equipment 630 662 Occupancy 616 562 Professional services 204 197 Advertising 45 114 Other operating 412 554 ------- ------- Total other expenses 5,083 5,166 ------- ------- Income before income tax expense 1,321 1,671 Income tax expense 480 622 ------- ------- Net income $ 841 $ 1,049 ======= ======= Per share of common stock: Basic earnings per share $ 0.08 $ 0.10 Diluted earnings per share $ 0.08 $ 0.10 Basic weighted average shares outstanding 10,481 10,358 Diluted weighted average shares outstanding 10,910 10,671 # # # # # -----END PRIVACY-ENHANCED MESSAGE-----