SYNF Synergy Financial Grp. (MM)

Synergy Financial Group, Inc. Announces First Quarter, 2005 Earnings CRANFORD, N.J., April 27 /PRNewswire-FirstCall/ -- 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, 2005 of $1.1 million, or $0.10 per basic and diluted share. This represents an increase of $115,000, or 11.4 percent, from $1.0 million, or $0.10 per basic and diluted share, for the same three-month period last year. (Logo: http://www.newscom.com/cgi-bin/prnh/20040128/SYNFDLOGO ) Total assets reached $896.3 million on March 31, 2005, an increase of 4.1 percent, or $35.6 million, from $860.7 million on December 31, 2004. Net loans increased 6.3 percent, or $35.2 million, to $596.9 million on March 31, 2005, from $561.7 million on December 31, 2004. On March 31, 2005, total loans were comprised of 22.0 percent in single-family real estate loans, 18.8 percent in home equity loans, 27.8 percent in non-residential and multi-family mortgage loans, 28.6 percent in consumer loans, 1.0 percent in construction loans and 1.8 percent in commercial and industrial loans. On March 31, 2005, the allowance for loan and lease losses was $4.7 million, compared to $4.4 million on December 31, 2004. The ratio of the allowance to total loans was 0.78 percent during both periods. Non-performing assets to total assets was 0.04 percent on March 31, 2005, compared to 0.03 percent on December 31, 2004. Deposits reached $566.9 million on March 31, 2005, an increase of $28.0 million, or 5.2 percent, from the $538.9 million reported on December 31, 2004. Core deposits, consisting of checking, savings, and money market accounts, increased $7.1 million, or 2.5 percent, and represented 51.7 percent of total deposits on March 31, 2005. During the same period, borrowings increased $8.2 million, or 3.8 percent, to $220.6 million on March 31, 2005. Stockholders' equity totaled $102.8 million on March 31, 2005, a decrease of 1.2 percent, or $1.2 million, from $104.0 million on December 31, 2004. The decline in equity is the result of the repurchase of shares to satisfy the Company's restricted stock plans and the stock repurchase program announced on January 26, 2005, as well as the accumulated effect of an unrealized investment portfolio market value adjustment, net of tax, offset by net income for the quarter. Additionally, on March 22, 2005, the Company's Board of Directors declared a quarterly cash dividend of $0.04 per common share, consistent with the prior quarterly dividend. The dividend is payable on April 29, 2005 to stockholders of record on April 15, 2005. Net interest income increased $361,000, or 6.4 percent, for the three months ended March 31, 2005, to $6.0 million, from $5.7 million for the same period last year. Other income increased $276,000, or 40.2 percent, for the three months ended March 31, 2005, to $965,000, from $688,000 for the same quarter one year ago. This increase was primarily attributable to growth in commission income generated by Synergy Financial Services, Inc. Other expenses increased $411,000, or 9.5 percent, for the three months ended March 31, 2005, to $4.7 million, from $4.3 million for the same period one year ago. The increase was primarily attributable to wages and benefits associated with the Company's growth strategy, as well as to equity-based employee compensation plans. 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, Morris, and Union counties 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. 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. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands) March 31, December 31, 2005 2004 (unaudited) (audited) Assets: Cash and amounts due from banks $ 4,097 $ 4,687 Interest-bearing deposits with banks 2,286 1,759 Cash and cash equivalents 6,383 6,446 Investment securities available-for-sale, at fair value 126,290 134,360 Investment securities held-to-maturity (fair value of $116,586 and $111,154, respectively) 117,573 110,584 Federal Home Loan Bank of New York stock, at cost 11,250 10,771 Loans receivable, net 596,886 561,687 Accrued interest receivable 2,991 2,751 Property and equipment, net 17,261 16,814 Cash surrender value of bank-owned life insurance 12,760 12,637 Other assets 4,856 4,627 Total assets $ 896,250 $ 860,677 Liabilities: Deposits $ 566,882 $ 538,916 Federal Home Loan Bank advances 220,570 212,414 Advance payments by borrowers for taxes and insurance 1,840 1,702 Accrued interest payable on advances 412 385 Dividend payable 498 498 Other liabilities 3,232 2,720 Total liabilities 793,434 756,635 Commitments and contingencies - - 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 March 31, 2005 - 12,452,011 December 31, 2004 - 12,452,011 1,245 1,245 Additional paid-in-capital 86,321 86,177 Retained earnings 31,210 30,603 Unearned ESOP shares (5,792) (5,962) Unearned RSP compensation (3,189) (3,391) Treasury stock acquired for the RSP (5,109) (4,343) Treasury stock, at cost; 66,749 and --0-- shares at March 31, 2005 and December 31, 2004, respectively (804) - Accumulated other comprehensive income (loss), net of taxes (1,066) (287) Total stockholders' equity 102,816 104,042 Total liabilities and stockholders' equity $ 896,250 $ 860,677 SYNERGY FINANCIAL GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income (In thousands, except per share data) For the Three Months Ended March 31, 2005 2004 (unaudited) (unaudited) Interest income: Loans, including fees $ 8,174 $ 6,700 Investment securities 2,270 1,510 Other 91 22 Total interest income 10,535 8,232 Interest expense: Deposits 2,720 2,095 Borrowed funds 1,793 476 Total interest expense 4,513 2,571 Net interest income before provision for loan losses 6,022 5,661 Provision for loan losses 445 368 Net interest income after provision for loan losses 5,577 5,293 Other income: Service charges and other fees on deposit accounts 509 484 Net gain on sale of loans - - Net gain on sale of investments - - Commissions 248 15 Other 208 189 Total other income 965 688 Other expenses: Salaries and employee benefits 2,643 2,255 Premises and equipment 872 981 Occupancy 524 473 Professional services 195 128 Advertising 207 176 Other operating 282 299 Total other expenses 4,723 4,312 Income before income tax expense 1,819 1,669 Income tax expense 699 664 Net income $ 1,120 $ 1,005 Per share of common stock: Basic earnings per share $ 0.10 $ 0.10 Diluted earnings per share $ 0.10 $ 0.10 Basic weighted average shares outstanding 11,231,081 10,086,963 Diluted weighted average shares outstanding 11,679,829 10,312,989 http://www.newscom.com/cgi-bin/prnh/20040128/SYNFDLOGODATASOURCE: Synergy Financial Group, Inc. CONTACT: Kevin M. McCloskey, Senior Vice President and Chief Operating Officer, Synergy Financial Group, Inc., 1-800-693-3838, ext. 3292 Web site: http://www.synergyonthenet.com/

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