HARTFORD, Conn., April 28, 2010 (GLOBE NEWSWIRE) -- The Connecticut Bank and Trust Company ("CBT" or "Bank") (Nasdaq:CTBC) reported net income of $246,000 for the first quarter of 2010 compared to $27,000 for the comparable period a year earlier. For the three months ended March 31, 2010, after accounting for both dividends and accretion on preferred stock, the Bank reported net income attributable to common shareholders of $149,000 or $0.04 per share (basic and diluted) compared to a net loss attributable to common shareholders of ($2,000), for the comparable period a year earlier. The Bank also reported that total assets exceeded $266 million, up from $260 million reported at year end 2009.
"It was a solid quarter for our bank," reported Chairman and CEO David A. Lentini. "We had growth in all the important metrics including loans, deposits and net income." Lentini added, "We continue to operate in one of the worst economic climates in my memory. The Bank continues to be well-positioned to help Connecticut's businesses and families with their financial needs."
Operating Results for the Quarter Ended March 31, 2010. Net interest income for the quarter ended March 31, 2010, increased $541,000 or 28% over the same period in 2009. Growth in earning assets, despite a lower yield, and lower interest rates paid on average interest-bearing liabilities combined to lift the net interest margin 30 basis points to 3.97%.
Income from fee based services amounted to $149,000 in the quarter, compared to $125,000 in the first quarter of 2009. For the three month period ended March 31, 2009, the Bank also reported net gains on sales of securities of $39,000. There have been no security sales reported in 2010.
First quarter operating expenses were $2,223,000, an increase of $239,000, from the same period last year. Compensation costs, including staff additions, benefits, and related taxes, rose $148,000, for the three month period ended March 31, 2010. FDIC insurance premiums rose $56,000, for the three month period ending March 31, 2010 compared to the prior year. Planned spending for marketing and other professional services was up $13,000 and $27,000, respectively, compared to the same period in the prior year. Increases in all other general and administrative costs were offset by lower occupancy costs related to fully depreciated equipment and software.
Provision for Loan Losses. The provision for loan losses for the first quarter of 2010 was $155,000. Growth in the loan portfolio and internally identified problem loans were the principal factors in determining the need for provisions. The reserve ratio stood at 1.37% of loans outstanding compared to 1.35% at December 31, 2009. Mr. Lentini stated, "Our additions to reserves continue to reflect our conservative nature and our consistent portfolio management. While there may be signs of the beginning of an economic recovery, this conservative approach in reserving for possible loan losses will continue throughout 2010." At March 31, 2010, the allowance was $2.8 million compared to $2.7 million at December 31, 2009.
Asset Quality. We closely monitor all loan relationships and identify problem loans through an internal risk rating system, which is independently reviewed on an annual basis. Charged-off loans amounted to $48,000 for the quarter ended March 31, 2010 compared to $29,000 for the comparable period a year earlier. Total nonaccrual loans were $1.8 million and represented .87% of total loans outstanding at March 31, 2010, compared to $1.6 million, or 1.08% of total loans at December 31, 2009. The ratio of the allowance for loan losses to nonperforming loans was 157% at March 31, 2010. CBT had no loans that were past due more than 90 days and still accruing as of March 31, 2010.
Balance Sheet Performance. Total assets were $266.7 million at March 31, 2010, up $6.4 million from December 31, 2009. The increase was centered on growth in the loan portfolio of $4.4 million and increases in cash and cash equivalents of $1.2 million compared to December 31, 2009. Securities available for sale declined $1.5 million as a result of principal payments on mortgage-backed securities and sales of securities. Deposits increased $7.0 million while short-term borrowings declined $1.1 million. Borrowings from the Federal Home Loan Bank Boston remained consistent at $30.5 million. The Bank is considered well-capitalized with stockholders' equity of $24.7 million at March 31, 2010.
| Selected Performance Data | |||||
| Quarter Ended | |||||
| Dollars in thousands, except per share data |
Mar 31, 2009 |
Jun 30, 2009 |
Sept 30, 2009 |
Dec 31, 2009 |
Mar 31, 2010 |
| Total assets (EOP) | $ 223,420 | $ 241,645 | $ 238,263 | $ 260,254 | $ 266,661 |
| Net income (loss) | $ 27 | $ (106) | $ 204 | $ 232 | $ 246 |
| Net income (loss) available to common shareholders | $ (2) | $ (135) | $ 176 | $ 135 | $ 149 |
| Net interest margin | 3.69% | 3.80% | 4.13% | 4.06% | 3.97% |
| Net interest spread | 3.15% | 3.41% | 3.72% | 3.77% | 3.62% |
| Ratio of total stockholders' equity to total assets (EOP) | 10.48% | 9.69% | 10.22% | 9.24% | 9.25% |
| Weighted avg shares outstanding (1) | 3,572 | 3,572 | 3,572 | 3,572 | 3,604 |
| Income (loss) per common share (basic and diluted) | $ -- | $ (0.04) | $ 0.05 | $ 0.04 | $ 0.04 |
| Book value per common share (EOP) | $ 5.19 | $ 5.19 | $ 5.44 | $ 5.36 | $ 5.43 |
| Allowance for loan losses to total loans (EOP) | 1.51% | 1.56% | 1.55% | 1.35% | 1.37% |
| Nonperforming loans to total loans | 0.88% | 2.03% | 1.36% | 1.08% | 0.87% |
| (1) Prior periods restated in accordance with adoption of ASC 260-10-45-49A (Formerly EITF 06-3-1) | |||||
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 Operations | ||
| (Unaudited) | ||
|
Three Months Ended March 31, |
||
| 2010 | 2009 | |
| (Dollars in thousands; except per share data) | ||
| Interest and dividend income: | ||
| Loans, including fees | $ 3,048 | $ 2,703 |
| Debt securities | 268 | 358 |
| Federal funds sold/other | 19 | 6 |
| Total interest and dividend income | 3,335 | 3,067 |
| Interest expense: | ||
| Deposits | 592 | 851 |
| Borrowed funds | 268 | 282 |
| Total interest expense | 860 | 1,133 |
| Net interest income | 2,475 | 1,934 |
| Provision for loan losses | 155 | 87 |
| Net interest income, after provision for loan losses | 2,320 | 1,847 |
| Noninterest income: | ||
| Service charges and fees | 78 | 66 |
| Brokerage commissions | 71 | 59 |
| Gains from sales of available-for-sale securities, net | -- | 39 |
| Total noninterest income | 149 | 164 |
| Noninterest expenses: | ||
| Salaries and benefits | 1,171 | 1,023 |
| Occupancy and equipment | 435 | 468 |
| Data processing | 78 | 78 |
| Marketing | 93 | 80 |
| Professional services | 149 | 122 |
| FDIC insurance premiums | 97 | 41 |
| Other general and administrative | 200 | 172 |
| Total noninterest expenses | 2,223 | 1,984 |
| Net income | 246 | 27 |
| Preferred stock dividend and accretion | (97) | (29) |
| Net income (loss) attributable to common shareholders | $ 149 | $ (2) |
| Per share information: | ||
| Basic | $ 0.04 | $ -- |
| Diluted | $ 0.04 | $ -- |
| Average common shares issued and outstanding (in thousands) | 3,604 | 3,572 |
| Average diluted common shares issued and outstanding (in thousands) | 3,604 | 3,572 |
| THE CONNECTICUT BANK AND TRUST COMPANY | |||
| Balance Sheets | |||
| (Unaudited) | |||
| ASSETS | |||
| March 31, 2010 | December 31, 2009 | March 31, 2009 | |
| (Dollars in thousands) | |||
| Cash and due from banks | $ 4,314 | $ 4,317 | $ 8,268 |
| Federal funds sold | 24,000 | 22,800 | -- |
| Cash and cash equivalents | 28,314 | 27,117 | 8,268 |
| Certificates of deposit | 78 | 78 | 78 |
| Securities available for sale, at fair value | 27,574 | 27,431 | 29,024 |
| Federal Reserve Bank stock, at cost | 724 | 724 | 710 |
| Federal Home Loan Bank stock, at cost | 2,057 | 2,057 | 2,057 |
| Loans held for sale | -- | -- | 402 |
| Loans | 205,228 | 200,780 | 181,552 |
| Less: allowance for loan losses | (2,809) | (2,702) | (2,739) |
| Loans, net | 202,419 | 198,078 | 178,813 |
| Premises and equipment, net | 2,005 | 2,096 | 2,433 |
| Accrued interest receivable | 1,095 | 933 | 944 |
| Prepaid FDIC insurance | 995 | 1,069 | -- |
| Other assets | 1,400 | 671 | 691 |
| $ 266,661 | $ 260,254 | $ 223,420 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Noninterest-bearing deposits | $ 30,294 | $ 34,442 | $ 27,116 |
| Interest-bearing deposits | 177,486 | 166,330 | 137,045 |
| Short-term borrowings | 2,893 | 3,988 | 4,667 |
| Long-term debt | 30,450 | 30,450 | 30,450 |
| Other liabilities | 874 | 991 | 722 |
| Total liabilities | 241,997 | 236,201 | 200,000 |
| Stockholders' equity; | |||
| Preferred stock, no par value; 1,000,000 shares authorized; 5,448 shares issued and outstanding; aggregate liquidation preference of $5,448 | 5,448 | 5,448 | 5,448 |
| Discount on preferred stock | (460) | (489) | (575) |
| Common stock, $1.00 par value; 10,000,000 shares authorized; Issued and outstanding: 3,620,950 shares at March 31, 2010 and 3,572,450 at December 31, 2009 and March 31, 2009 | 3,621 | 3,572 | 3,572 |
| Common stock warrants | 1,405 | 1,405 | 1,405 |
| Additional paid-in capital | 30,032 | 29,858 | 29,801 |
| Restricted stock unearned compensation | (207) | (29) | (110) |
| Retained deficit | (15,295) | (15,444) | (15,620) |
| Accumulated other comprehensive income (loss) | 120 | (268) | (501) |
| Total stockholders' equity | 24,664 | 24,053 | 23,420 |
| $ 266,661 | $ 260,254 | $ 223,420 | |