HARTFORD, Conn., Aug. 6, 2009 (GLOBE NEWSWIRE) -- The Connecticut Bank and Trust Company ("CBT") (Nasdaq:CTBC) reported a net loss of $106,000 for the quarter ended June 30, 2009. This represents an improvement of $189,000 from the $295,000 loss reported in the quarter ended June 20, 2008. The loss per share was $0.04 for the quarter compared to $0.08 reported in the same period last year.
For the first half of 2009 the net loss amounted to $79,000 compared to a $691,000 loss in the first half of 2008.
Total assets grew $17 million during the quarter, to close at $242 million. Loans outstanding increased $5 million. Deposits increased $20 million and short-term borrowings decreased $2 million. The increase in deposits resulted primarily from a $17 million increase in core deposits consisting of our customers' funds in various checking and savings accounts.
CBT Chairman and CEO David A. Lentini commented, "While at first glance the result appears disappointing, the quarter included significant improvement. Net interest income increased $391,000, or 24%, while operating expenses increased $138,000 or 7% compared to the results reported for second quarter of 2008."
Results of Operations - Second Quarter 2009
Net Interest Income. Despite the historically low interest rate environment that continued throughout the quarter, net interest income for the quarter increased $391,000 or 24% over the same period in 2008. Growth in average loans outstanding and lower rates paid on time deposits were the principal reasons for this improvement. The net interest margin rose 37 basis points despite a decrease in both our average asset yield and average funding costs.
Noninterest Income. Deposit service fees increased $15,000 to $70,000 for the three-month period ending June 30, 2009 compared to $55,000 in the comparable period a year earlier. Wealth and investment services declined $9,000 to $61,000 on lower volume of transactions. During the quarter, CBT began originating residential mortgage loans for sale in the secondary market. Fees earned amounted to $8,000 for the quarter. CBT realized gains of $17,000 from sales of investment securities in the second quarter of 2009.
Noninterest Expenses. The operating expenses for the quarter, excluding $110,000 for a special assessment from the FDIC rose $28,000, or just 1%, from the same period in 2008. The FDIC's special assessment, applicable to banks throughout the U.S., was intended to replenish the insurance fund for losses related to failed banks.
Asset Quality. Total nonaccrual loans were $3.8 million and represented 2.0% of total loans outstanding at June 30, 2009, compared to $2.1 million, or 1.5% of total loans at December 31, 2008. CBT had no other loans that were past due 90 days or more.
Allowance for Loan Losses. Loan growth coupled with our internal risk analysis of the loan portfolio required provisions of $179,000 for the quarter ended June 30, 2009 compared to $84,000 in the comparable period a year ago. CEO Lentini said, "Loan growth and the loan pipeline remain strong. CBT is a traditional commercial bank and our Business Development Officers actively monitor and assess our loan portfolio. When necessary, CBT prudently reserves for loan losses." At June 30, 2009, the allowance was $2.9 million, compared to $2.7 million at December 31, 2008. This represented 1.58% and 1.47% of outstanding loans at each of the respective dates. There were no charge-offs in the current quarter compared to $23,000 in the comparable period a year earlier.
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Selected Performance Data
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Dollars in
thousands, except June 30, Sept 30, Dec. 31, March 31, June 30,
per share data 2008 2008 2008 2009 2009
---------------------------- -------- -------- -------- --------
Total assets (EOP) $200,128 $223,465 $225,078 $223,420 $241,645
Net operating
income (loss) $ (295) $ (1,487) $ (298) $ 27 $ (106)
Net interest margin 3.43% 3.39% 3.41% 3.69% 3.80%
Net interest spread 2.75% 2.79% 2.84% 3.15% 3.41%
Ratio of total
stockholders'
equity to total
assets (EOP) 9.65% 8.09% 10.46% 10.48% 9.69%
Weighted avg shares
outstanding (1) 3,572 3,572 3,572 3,572 3,572
Loss per share $ (0.08) $ (0.42) $ (0.08) $ (0.00) $ (0.04)
Book value per
share (EOP) $ 5.40 $ 5.06 $ 5.23 $ 5.19 $ 5.19
Allowance for loan
losses to total
loans (EOP) 1.21% 1.52% 1.47% 1.51% 1.56%
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Selected Performance Data
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Six months ended
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Dollars in thousands, June 30, June 30,
except per share data 2008 2009
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Total assets (EOP) $200,128 $241,645
Net operating income (loss) $ (691) $ (79)
Net interest margin 3.42% 3.75%
Net interest spread 2.62% 3.29%
Ratio of total stockholders' equity to
total assets (EOP) 9.65% 9.69%
Weighted avg shares outstanding (1) 3,572 3,572
Loss per share $ (0.19) $ (0.04)
Book value per share (EOP) $ 5.40 $ 5.19
Allowance for loan losses to
total loans (EOP) 1.21% 1.56%
(1) Prior periods restated in accordance with adoption of FSP EITF
06-31 for change in presentation for prior period earnings per share.
Caution concerning forward-looking statements:
Statements contained in this release, which are not historical facts, may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated, due to a number of factors which include, without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, changes in the interest rates, the effects of competition, and other factors that could cause actual results to differ materially from those provided in any such forward-looking statements. CBT does not undertake to update its forward-looking statements.
See financial statements accompanying this release for additional data.
THE CONNECTICUT BANK AND TRUST COMPANY
Statements of Loss
(Unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
(Dollars in thousands, ----------------- -----------------
except per share data) 2009 2008 2009 2008
------- ------- ------- -------
Interest and dividend income:
Interest and fees on loans $ 2,769 $ 2,564 $ 5,472 $ 5,154
Debt securities 326 340 684 582
Dividends 11 26 16 51
Federal funds sold/other -- 37 1 112
------- ------- ------- -------
Total interest and
dividend income 3,106 2,967 6,173 5,899
------- ------- ------- -------
Interest expense:
Deposits 785 1,030 1,636 2,243
Borrowed funds 272 279 554 500
------- ------- ------- -------
Total interest expense 1,057 1,309 2,190 2,743
------- ------- ------- -------
Net interest income 2,049 1,658 3,983 3,156
Provision for loan losses 179 84 266 221
------- ------- ------- -------
Net interest income, after
provision for loan losses 1,870 1,574 3,717 2,935
------- ------- ------- -------
Noninterest income:
Service charges and fees 70 55 136 103
Brokerage commissions 61 70 120 136
Gains from sales of
available-for-sale
securities, net 17 -- 56 65
Gains from sales of
loans, net 8 -- 8 --
------- ------- ------- -------
Total noninterest income 156 125 320 304
------- ------- ------- -------
Noninterest expenses:
Salaries and benefits 1,060 1,084 2,083 2,142
Occupancy and equipment 437 432 905 866
Data processing 70 74 148 142
Marketing 83 75 163 140
Professional services 136 111 258 210
FDIC assessment 177 32 218 60
Other general and
administrative 169 186 341 370
------- ------- ------- -------
Total noninterest expenses 2,132 1,994 4,116 3,930
------- ------- ------- -------
Net loss (106) (295) (79) (691)
Accretion of discount on
preferred stock issuance (29) -- (58) --
------- ------- ------- -------
Net loss attributable to
common shareholders $ (135) $ (295) $ (137) $ (691)
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Net loss per share:
Basic $ (0.04) $ (0.08) $ (0.04) $ (0.19)
Diluted $ (0.04) $ (0.08) $ (0.04) $ (0.19)
Shares outstanding
(in thousands):
Average basic common shares
issued and outstanding 3,572 3,572 3,572 3,572
Average diluted common shares
issued and outstanding 3,572 3,572 3,572 3,572
THE CONNECTICUT BANK AND TRUST COMPANY
Balance Sheets
(Unaudited)
ASSETS
June 30, December 31,
2009 2008
------------ ------------
(Dollars in thousands)
Cash and due from banks $ 20,409 $ 6,774
Certificates of deposit 78 99
Securities available for sale, at
fair value 29,569 32,461
Federal Reserve Bank stock, at cost 710 585
Federal Home Loan Bank stock, at cost 2,057 1,870
Loans held for sale 728 --
Loans 187,072 181,772
Less: allowance for loan losses (2,918) (2,681)
------------ ------------
Loans, net 184,154 179,091
Premises and equipment, net 2,315 2,566
Accrued interest receivable 923 949
Other assets 702 683
------------ ------------
$ 241,645 $ 225,078
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 184,691 $ 162,934
Short-term borrowings 2,292 7,521
Long-term debt 30,450 30,450
Other liabilities 786 634
------------ ------------
Total liabilities 218,219 201,539
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Stockholders' equity:
Preferred stock, no par value;
1,000,000 shares authorized; 5,448
shares issued and outstanding at
June 30, 2009 and December 31,
2008; aggregate liquidation
preference of $5,448 at June 30,
2009 and December 31, 2008 5,448 5,448
Discount on preferred stock (546) (604)
Common stock, $1.00 par value;
10,000,000 shares authorized;
3,572,450 shares issued and
outstanding at June 30, 2009 and
December 31, 2008 3,572 3,572
Common stock warrants 1,405 1,405
Additional paid-in capital 29,821 29,780
Restricted stock unearned
compensation (79) (141)
Retained deficit (15,755) (15,618)
Accumulated other comprehensive loss (440) (303)
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Total stockholders' equity 23,426 23,539
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$ 241,645 $ 225,078
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