HARTFORD, Conn., July 22, 2008 (PRIME NEWSWIRE) -- The Connecticut Bank and Trust Company (Nasdaq:CTBC)("CBT") announced a net loss of $295,000 or $0.08 per share for the second quarter of 2008. This represents an improvement of $297,000, compared to a loss of $592,000 or $0.17 per share for the same period in 2007. Total assets were $200.1 million at June 30, 2008, an increase of $21.4 million from $178.7 million reported at December 31, 2007.
Chairman and CEO David A. Lentini remarked, "I am pleased to say that CBT is making strong, steady progress toward achieving profitability in these very difficult economic times. This is the 11th consecutive quarterly improvement in year over year operating results."
For the six months ended June 30, 2008, CBT reported a $691,000 loss, or $0.19 per share, compared to a $1,230,000 loss or $0.35 per share for the six months ended June 30, 2007.
Results of Operations. The results of operation for the quarter ended June 30, 2008 showed improvement of $297,000 or 50% from $592,000 reported for the quarter ended June 30, 2007. Growth in net interest, still the bank's primary source of income, increased $334,000 and fee based income increased $11,000. Partially offsetting these gains were $17,000 increase in the provisions for loan losses and $31,000 increase in noninterest expenses. Noninterest expenses, the costs of day-to-day operation of the bank, remain tightly controlled with the increase representing a modest 1.6% year over year.
The increase in net interest resulted primarily from asset growth. Average earning assets were up $40 million in the quarter ended June 30, 2008 over the same period in 2007 lead principally by $34 million in loans. Despite the effect of Federal Open Market Committee actions that lowered the prime interest rate 2.75% between September 2007 and May 2008, the bank's net interest margin decreased a slight three basis points to 3.43% for the quarter compared to 3.46% in the quarter ended June 30, 2007.
Noninterest income was $125,000 in the quarter ended June 30, 2008 an increase of 10% compared to the same period a year earlier primarily due to the increased sales of fee based services. CEO Lentini commented, "While our core business is commercial loan origination, fee income provided from diverse sources is proving a modest complement to lending."
Noninterest expense increased $31,000 or 1.6%, to $1,994,000 for the three month period ending June 30, 2008 compared to the same period in the prior year. It is notable that the increase resulted principally from higher facilities costs reflecting double digit rises in fuel, electricity and local property taxes.
Balance Sheet Performance. Total assets were $200.1 million at June 30, 2008, an increase of $21.4 million or 12%, compared to $178.7 million at December 31, 2007. Total loans outstanding grew $13.9 million to $156.6 million and total investments grew $7.8 million to $27.7 million at June 30, 2008. Asset growth was funded through a combination of increased deposits and increased borrowings from the Federal Home Loan Bank of Boston. Total deposits were $147.4 million at June 30, 2008, an increase of $9.6 million from December 31, 2007.
Borrowings from the Federal Home Loan Bank of Boston totaled $30.5 million, increasing $13 million from the $17.5 million at December 31, 2007. The Bank continues to be well-capitalized with stockholders' equity of $19.3 million at June 30, 2008. The ratio of stockholders' equity to total assets was 11.44%.
Asset Quality. The provision for losses was $84,000 for the three month period ending June 30, 2008 compared to $67,000 in the same period a year prior. The provisions increased the allowance for loan losses to $1.9 million at June 30, 2008 or 1.21% of outstanding loans compared to $1.7 million or 1.19% of outstanding loans at December 31, 2007. Loans charged-off for the three month period ending June 30, 2008 totaled $23,000. There were no charged-off loans in the comparable period in 2007.
Total nonaccrual loans were $1.5 million and represented 0.93% of total loans outstanding at June 30, 2008, compared to $599,000, or 0.42% at December 31, 2007. The coverage ratio which measures the allowance for loan and lease losses to nonperforming loans was 130% at June 30, 2008. CBT had no other loans that were past due 90 days or more.
CEO Lentini concluded his remarks by saying "Having completed our branch expansion in 2007, our seven locations greet new customers every day. While no one has a crystal ball, I am confident that CBT will remain well-capitalized and capable of meeting the financial services needs of its growing base of customers."
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Selected Performance Data
----------------------------------------------------------------------
Three months ended
----------------------------------------------------------------------
Dollar
values in
thousands
except March 31, June 30, Sept 30, Dec. 31, March 31, June 30,
per share 2007 2007 2007 2007 2008 2008
------------------- -------- -------- -------- -------- --------
Total
assets
(EOP) $155,554 $169,816 $181,457 $178,739 $204,205 $200,128
Net
operating
loss $ (638) $ (592) $ (530) $ (388) $ (396) $ (295)
Net
interest
margin 3.70% 3.46% 3.58% 3.64% 3.37% 3.43%
Net
interest
spread 2.57% 2.49% 2.54% 2.58% 2.45% 2.75%
Ratio of
total
stock-
holders'
equity to
total
assets
(EOP) 13.92% 12.25% 11.35% 11.44% 9.82% 9.65%
Weighted
avg shrs
outstanding 3,531 3,534 3,537 3,544 3,545 3,550
Loss per
share $ (0.18) $ (0.17) $ (0.15) $ (0.11) $ (0.11) $ (0.08)
Book value
per share
(EOP) $ 6.07 $ 5.83 $ 5.77 $ 5.72 $ 5.62 $ 5.40
Allowance
for loan
losses to
total
loans
(EOP) 1.24% 1.22% 1.23% 1.19% 1.19% 1.21%
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------------------------------------------------ -------------------
Six months ended
------------------------------------------------ -------------------
Dollar values in thousands June 30, June 30,
except per share 2007 2008
------------------------------------------------ -------- --------
Total assets (EOP) $169,816 $200,128
Net operating loss $ (1,230) $ (691)
Net interest margin 3.57% 3.42%
Net interest spread 2.54% 2.62%
Ratio of total stockholders'
equity to total assets (EOP) 12.25% 9.65%
Weighted avg shrs outstanding 3,532 3,550
Loss per share $ (0.51) $ (0.19)
Book value per share (EOP) $ 5.83 $ 5.40
Allowance for loan losses to total loans (EOP) 1.22% 1.21%
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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.
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.
THE CONNECTICUT BANK AND TRUST COMPANY
Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
(Dollars in thousands except (Unaudited) (Unaudited)
share data)
Interest and dividend income:
Interest and fees on loans $ 2,564 $ 2,254 $ 5,154 $ 4,285
Debt securities 340 245 582 495
Dividends 26 25 51 45
Federal funds sold 37 137 112 144
-------- -------- -------- --------
Total interest and dividend
income 2,967 2,661 5,899 4,969
-------- -------- -------- --------
Interest expense:
Deposits 1,030 1,185 2,243 2,089
Borrowed funds 279 152 500 343
-------- -------- -------- --------
Total interest expense 1,309 1,337 2,743 2,432
-------- -------- -------- --------
Net interest income 1,658 1,324 3,156 2,537
Provision for loan losses 84 67 221 127
-------- -------- -------- --------
Net interest income, after
provision for loan losses 1,574 1,257 2,935 2,410
-------- -------- -------- --------
Non-interest income:
Service charges and fees 55 43 103 83
Brokerage commissions 70 70 136 124
Gains(losses) from sales of
available-for-sale
securities, net -- 1 65 (42)
-------- -------- -------- --------
Total non-interest income 125 114 304 165
-------- -------- -------- --------
Non-interest expenses:
Salaries and benefits 1,084 1,112 2,142 2,172
Occupancy and equipment 432 345 866 681
Data processing 74 50 142 99
Marketing 75 106 140 221
Professional services 111 116 210 221
Other general and
administrative 218 234 430 411
-------- -------- -------- --------
Total non-interest expenses 1,994 1,963 3,930 3,805
-------- -------- -------- --------
Net loss $ (295) $ (592) $ (691) $ (1,230)
======== ======== ======== ========
Net loss per share:
Basic $ (0.08) $ (0.17) $ (0.19) $ (0.35)
Diluted $ (0.08) $ (0.17) $ (0.19) $ (0.35)
BALANCE SHEETS
(Dollars in Thousands)
ASSETS
June 30, December 31, June 30,
2008 2007 2007
(Unaudited) (Unaudited)
----------- ----------- -----------
Cash and due from banks $ 3,913 $ 3,411 $ 5,407
Federal funds sold 6,524 8,080 16,274
----------- ----------- -----------
Cash and cash equivalents 10,437 11,491 21,681
Securities available
for sale 27,740 19,894 20,125
Certificates of deposit 491 76 76
Federal Reserve Bank stock,
at cost 622 635 675
Federal Home Loan Bank
stock, at cost 1,567 945 914
Loans 156,582 142,686 123,665
Less: allowance for loan
losses (1,891) (1,693) (1,511)
----------- ----------- -----------
Loans, net 154,691 140,993 122,154
Premises and equipment, net 2,797 3,053 2,689
Accrued interest receivable 866 830 765
Other assets 917 822 737
----------- ----------- -----------
Total Assets $ 200,128 $ 178,739 $ 169,816
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 147,352 $ 137,800 $ 133,091
Short-term borrowings 2,507 2,255 1,839
Long-term debt 30,450 17,450 12,450
Other liabilities 513 793 1,628
----------- ----------- -----------
Total liabilities 180,822 158,298 149,008
----------- ----------- -----------
Stockholders' equity;
Common stock, $1.00 par
value; 10,000,000 shares
authorized; 3,572,450
shares issued and
outstanding at June 30,
2008, and December 31,
2007 3,572 3,572 3,572
Common stock warrants 853 853 853
Additional paid-in
capital 29,738 29,700 29,657
Restricted stock unearned
compensation (207) (279) (367)
Retained deficit (13,833) (13,142) (12,224)
Accumulated other
comprehensive loss (817) (263) (683)
----------- ----------- -----------
Total stockholders'
equity 19,306 20,441 20,808
----------- ----------- -----------
Total Liabilities and
Stockholders' Equity $ 200,128 $ 178,739 $ 169,816
=========== =========== ===========