HARTFORD, Conn., Oct. 21, 2009 (GLOBE NEWSWIRE) -- The Connecticut Bank and Trust Company ("CBT") (Nasdaq:CTBC) reported net operating income of $204,000 before preferred dividends for the three months ended September 30, 2009 compared to a net loss of $1,487,000 for the comparable period a year earlier.
Chairman and CEO David A. Lentini commented, "Everyone on the CBT team has responded well to the difficult economic conditions of the past 15 months. We continue to make funds available to the local market through our various loan programs. We are focused on proactive monitoring of the loan portfolio and growing core deposits. I am pleased that our efforts are now producing profits."
CBT also reported net operating income of $125,000 before preferred dividends for the nine month period ended September 30, 2009 compared to a net loss of $2,178,000 for the comparable period in the prior year.
Operating Results. Net interest income for the quarter ended September 30, 2009 increased $576,000 or 33% over the same period in 2008. The yield on earning assets declined a modest 21 basis points, while the average rate paid on interest bearing liabilities decreased 115 basis points, producing a strong margin of 4.14%. The collection of $34,000 of past due interest added 6 basis points to the margin.
Noninterest Income. Noninterest income totaled $153,000 for the quarter ended September 30, 2009. Service fees on deposit accounts and commissions on retail brokerage accounts comprise the principle sources of non-interest income. The Bank began originating residential mortgage loans for sale in the secondary market earlier this year which to date has produced modest results.
Noninterest Expenses. The expenses for the quarter amounted to $2.1 million, increasing $54,000 or 2.6%, from the same period in 2008. Expenses increased in most categories as a result of higher costs of conducting business, but management remains diligent in holding the line on discretionary spending. The increase in FDIC insurance premiums were principally responsible for the increased expense in the year over year results.
Provisions for Loan Losses. The provisions for loan losses in the third quarter of 2009 amounted to $154,000. Growth in the loan portfolio and internal risk ratings are the primary attributes used to assess provisions necessary to meet potential loan losses. The reserve ratio increased to 1.55% of loans outstanding from 1.47% at year end. Mr. Lentini said, "There remains a good deal of uncertainty about the economy, both nationally and here in Connecticut. Our adherence to sound underwriting principles continues to be a significant factor in the managing the need for higher provisions."
Balance Sheet Performance. Total assets were $238 million at September 30, 2009, up $13.2 million from December 31, 2008. The increase was centered in growth in the loan portfolio of $10.1 million and increases in cash and cash equivalents of $6.9 million from year end totals. Deposits increased $18.4 million while short term borrowings declined $6.3 million. Borrowings from the Federal Home Loan Bank Boston remained at $30.0 million. The Bank is considered well-capitalized with stockholders' equity of $24.4 million at September 30, 2009.
Asset Quality. Our ability to respond quickly in these difficult economic conditions is intended to reduce our risk of loss by providing assistance where appropriate. Total nonaccrual loans were $2.6 million and represented 1.36% of total loans outstanding at September 30, 2009, compared to $2.1 million, or 1.15% of total loans at December 31, 2008. The coverage ratio which measures the allowance for loan losses to nonperforming loans was 113% at September 30, 2009. CBT had no other loans that were past due 90 days or more.
Allowance for Loan Losses. At September 30, 2009 the allowance was $3.0 million, compared to $2.7 million at December 31, 2008. This represented 1.55% and 1.47% of outstanding loans at the respective dates. Charged-off loans amounted to $100,000 for the quarter ended September 30, 2009 compared to $632,000 for the comparable period in 2008.
CBT is a full service commercial bank headquartered in Hartford, CT, with branch offices conveniently located in Glastonbury, Newington, Rocky Hill, Vernon, West Hartford, and Windsor.
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
Selected Performance Measures
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Selected Performance Data
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Dollars in
thousands,except Sept. 30, Dec. 31, March 31, June 30, Sept. 30,
per share data 2008 2008 2009 2009 2009
---------------------------- --------- --------- --------- ---------
Total assets (EOP) $223,465 $225,078 $223,420 $241,645 $238,263
Net operating
income (loss) $ (1,487) $ (298) $ 27 $ (106) $ 204
Net interest
margin 3.39% 3.41% 3.69% 3.80% 4.14%
Net interest
spread 2.79% 2.84% 3.15% 3.41% 3.73%
Ratio of total
stockholders'
equity to total
assets (EOP) 8.09% 10.46% 10.48% 9.69% 10.22%
Weighted avg
shares
outstanding (1) 3,572 3,572 3,572 3,572 3,572
Income (loss)
per share $ (0.42) $ (0.08) $ (0.00) $ (0.04) $ 0.05
Book value per
share (EOP) $ 5.06 $ 5.23 $ 5.19 $ 5.19 $ 5.44
Allowance for loan
losses to
total loans (EOP) 1.52% 1.47% 1.51% 1.56% 1.55%
Nine months ended
-------------------------
Dollars in thousands, Sept. 30, Sept. 30,
except per share data 2008 2009
----------------------------------- --------- ---------
Total assets (EOP) $223,465 $238,263
Net operating income (loss) $ (2,178) $ 125
Net interest margin 3.42% 3.88%
Net interest spread 2.62% 3.44%
Ratio of total stockholders' equity
to total assets (EOP) 8.09% 10.22%
Weighted avg shares outstanding (1) 3,572 3,572
Income (loss) per share $ (0.19) $ 0.01
Book value per share (EOP) $ 5.06 $ 5.44
Allowance for loan losses to
total loans (EOP) 1.52% 1.55%
(1) Prior periods restated in accordance with adoption of FSP EITF
06-31 for change in presentation for prior period earnings per
share.
THE CONNECTICUT BANK AND TRUST COMPANY
Balance Sheets
(Unaudited)
ASSETS
Sept. 30, Dec. 31,
2009 2008
--------- ---------
(Dollars in thousands)
Cash and due from banks $ 13,639 $ 6,774
Certificates of deposit 78 99
Securities available for sale,
at fair value 29,017 32,461
Federal Reserve Bank stock, at cost 710 585
Federal Home Loan Bank stock, at cost 2,057 1,870
Loans 191,869 181,772
Less: allowance for loan losses (2,973) (2,681)
--------- ---------
Loans, net 188,896 179,091
Premises and equipment, net 2,203 2,566
Accrued interest receivable 894 949
Other assets 769 683
--------- ---------
$ 238,263 $ 225,078
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 181,368 $ 162,934
Short-term borrowings 1,173 7,521
Long-term debt 30,450 30,450
Other liabilities 922 634
--------- ---------
Total liabilities 213,913 201,539
--------- ---------
Stockholders' equity:
Preferred stock, no par value;
1,000,000 shares authorized;
5,448 shares issued and outstanding
at September 30, 2009 and December 31,
2008; aggregate liquidation preference
of $5,448 at September 30, 2009 and
December 31, 2008 5,448 5,448
Discount on preferred stock (518) (604)
Common stock, $1.00 par value;
10,000,000 shares authorized;
3,572,450 shares issued and
outstanding at September 30, 2009
and December 31, 2008 3,572 3,572
Common stock warrants 1,405 1,405
Additional paid-in capital 29,839 29,780
Restricted stock unearned compensation (49) (141)
Retained deficit (15,579) (15,618)
Accumulated other comprehensive income 232 (303)
--------- ---------
Total stockholders' equity 24,350 23,539
--------- ---------
$ 238,263 $ 225,078
========= =========
THE CONNECTICUT BANK AND TRUST COMPANY
Statements of Operations
(Unaudited)
Three Months Nine Months
Ended Ended
September 30, September 30,
---------------- ----------------
(Dollars in thousands,
except per share data) 2009 2008 2009 2008
------- ------- ------- -------
Interest and dividend income:
Interest and fees on loans $ 2,887 $ 2,651 $ 8,359 $ 7,805
Debt securities 317 356 1,001 938
Dividends 11 10 27 61
Federal funds sold/other 1 37 2 149
------- ------- ------- -------
Total interest and
dividend income 3,216 3,054 9,389 8,953
------- ------- ------- -------
Interest expense:
Deposits 629 1,039 2,265 3,282
Borrowed funds 277 281 831 781
------- ------- ------- -------
Total interest expense 906 1,320 3,096 4,063
------- ------- ------- -------
Net interest income 2,310 1,734 6,293 4,890
Provision for loan losses 154 1,316 420 1,537
------- ------- ------- -------
Net interest income, after
provision for loan losses 2,156 418 5,873 3,353
------- ------- ------- -------
Noninterest income:
Service charges and fees 75 69 211 172
Brokerage commissions 71 77 191 213
Gains from sales of
available-for-sale
securities, net -- -- 56 65
Gains from sales of
loans, net 7 -- 15 --
------- ------- ------- -------
Total noninterest income 153 146 473 450
------- ------- ------- -------
Noninterest expenses:
Salaries and benefits 1,087 1,102 3,170 3,244
Occupancy and equipment 443 467 1,348 1,333
Data processing 82 76 230 218
Marketing 105 90 268 230
Professional services 134 115 392 325
FDIC assessment 82 33 300 93
Other general and
administrative 172 168 513 538
------- ------- ------- -------
Total noninterest expenses 2,105 2,051 6,221 5,981
------- ------- ------- -------
Net income (loss) 204 (1,487) 125 (2,178)
Accretion of discount on
preferred stock issuance (28) -- (86) --
------- ------- ------- -------
Net income (loss) attributable
to common shareholders $ 176 $(1,487) $ 39 $(2,178)
======= ======= ======= =======
Net income (loss) per share:
Basic $ 0.05 $ (0.42) $ 0.01 $ (0.19)
Diluted $ 0.05 $ (0.42) $ 0.01 $ (0.19)