HARTFORD, Conn., April 24, 2007 (PRIME NEWSWIRE) -- The Connecticut Bank and Trust Company (Nasdaq:CTBC) reported total assets of $155 million at March 31, 2007, an increase of $19 million from $136 million at December 31, 2006. The results of operations for the three months ended March 31, 2007 improved $239,000 to a loss of $638,000 or $0.18 per share compared to a loss of $877,000 or $0.25 per share for the quarter ended March 31, 2006.
Chairman and CEO David A. Lentini remarked, "The improvement in results reflects both the continued growth in assets and the significant decrease in the rate of growth in expenses. The increase in assets is significantly related to the development of our branch network which now includes six banking centers in and around Hartford." He went on to note, "Until now, we have been increasing the staff, facilities and resources necessary to meet our commitment to being a full service commercial bank. I believe we have reached a level that will permit continued growth without significant additional investment in these resources. Our prudent approach to loan origination and asset gathering has positioned the bank well for stability and future long-term profitability."
Results of Operations. The results of operations for the quarter ended March 31, 2007 improved $239,000 to a loss of $638,000 compared to a loss of $877,000 for the quarter ended March 31, 2006. Net interest income improved $275,000 and non-interest income improved $33,000. Noninterest expense increased $91,000 and the provisions for loan losses decreased $22,000.
The increase in net interest income attributable to growth in earning assets was $347,000 while the effect of a 33 basis point decrease in the net interest spread reduced net interest income $72,000. The net interest spread measures the difference between the average rate earned on earning assets and the average rate paid for interest-bearing liabilities. Net interest income for the quarter was negatively affected by the flat yield curve, as it was throughout much of 2006.
Noninterest expenses increased $91,000, or 5% to $1,842,000 in the quarter ended March 31, 2007 compared to $1,751,000 in the first quarter of 2006. The rate of increase in non-interest expenses has slowed significantly as the Bank nears the end of its build-out phase for the branch network and support areas. Included in this increase were the costs related to newly hired employees in anticipation of the April 2, 2007 opening of CBT's sixth banking center, in Windsor, CT and a $157,000 decrease in marketing costs. The results also included price increases in many of the goods and services purchased by CBT.
Balance Sheet Performance. Total assets were $155 million at March 31, 2007, an increase of $19 million compared to $136 million at December 31, 2006. The growth was led by a $10 million increase in loans outstanding and also included a $9 million increase in cash and cash equivalents. This category includes the Bank's most liquid assets available to meet the needs of both borrowers and depositors.
Total deposits were $114 million at March 31, 2007, an increase of $14 million from December 31, 2006. The Bank also increased its short term borrowings $5 million during the quarter. These two sources provided the funds for the growth in assets. Stockholders' equity at March 31, 2007 was $21.7 million compared to $22.1 million at December 31, 2006 primarily reflective of the operating losses for the quarter ended March 31, 2007 and somewhat mitigated by the improvement in the estimated market value of the Bank's available-for sale-securities portfolio.
Asset Quality. The allowance for loan losses at March 31, 2007 was $1,444,000 compared to $1,384,000 at December 31, 2006. This represented 1.24% and 1.29% of outstanding loans at the respective dates. There were no charge-offs during the quarter.
At March 31, 2007, two loans totaling $597,000 were classified as nonperforming loans. This was unchanged from December 31, 2006. The ratio of the allowance to nonperforming loans was 242% at March 31, 2007. There were no other loans past due 30 days or more and none classified as nonaccrual at March 31, 2006.
CBT is a full-service commercial bank headquartered in Hartford, CT, with branch offices conveniently located in Glastonbury, Newington, Vernon, West Hartford, and Windsor.
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Selected Performance Data
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Three months ended
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Dollar values in thousands Dec. 31, March 31, June 30, Sept 30,
except per share 2005 2006 2006 2006
-------------------------- ------- ------- -------- --------
Total assets (EOP) $96,875 $99,016 $112,462 $123,325
Net operating loss $ (622) $ (877) $ (908) $ (844)
Net interest margin 3.69% 4.19% 3.86% 3.69%
Ratio of total
stockholders' equity
to total assets (EOP) 25.85% 24.25% 20.47% 18.35%
Weighted avg shrs
outstanding 3,567 3,534 3,539 3,543
Loss per share $ (0.17) $ (0.25) $ (0.26) $ (0.24)
Book value per share (EOP) $ 7.02 $ 6.73 $ 6.45 $ 6.34
Allowance for loan losses
to total loans (EOP) 1.53% 1.36% 1.37% 1.34%
Three months ended Year ended
------------------ -------------------
Dollar values in thousands Dec. 31, March 31, Dec. 31, Dec. 31,
except per share 2006 2007 2005 2006
-------------------------- -------- -------- -------- --------
Total assets (EOP) $136,434 $155,554 $ 96,875 $136,434
Net operating loss $ (610) $ (638) $ (3,568) $ (3,238)
Net interest margin 3.74% 3.70% 3.08% 3.85%
Ratio of total
stockholders' equity
to total assets (EOP) 16.19% 13.92% 25.85% 16.19%
Weighted avg shrs
outstanding 3,547 3,541 3,567 3,547
Loss per share $ (0.17) $ (0.18) $ (1.53) $ (0.91)
Book value per share (EOP) $ 6.19 $ 6.07 $ 7.02 $ 6.19
Allowance for loan losses
to total loans (EOP) 1.29% 1.24% 1.53% 1.29%
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.
THE CONNECTICUT BANK AND TRUST COMPANY
Statements of Operations
(Unaudited)
(Dollars in thousands except share data)
Three Months Ended
March 31,
------------------
2007 2006
------- -------
Interest and dividend income:
Interest and fees on loans $ 2,031 $ 1,147
Debt securities 250 261
Dividends 20 18
Federal funds sold 7 15
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Total interest and dividend income 2,308 1,441
------- -------
Interest expense:
Deposits 904 418
Borrowed funds 191 85
------- -------
Total interest expense 1,095 503
------- -------
Net interest income 1,213 938
Provision for loan losses 60 82
------- -------
Net interest income, after provision
for loan losses 1,153 856
------- -------
Non-interest income:
Service charges and fees 40 18
Brokerage commissions 54 --
Net losses from sales of
available-for-sale securities (43) --
------- -------
Total non-interest income 51 18
------- -------
Non-interest expenses:
Salaries and benefits 1,060 906
Occupancy and equipment 336 276
Data processing 49 42
Marketing 115 272
Professional services 105 53
Telecommunications 47 45
Other general and administrative 130 157
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Total non-interest expenses 1,842 1,751
------- -------
Net loss $ (638) $ (877)
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Net loss per share:
Basic $ (0.18) $ (0.25)
Diluted $ (0.18) $ (0.25)
THE CONNECTICUT BANK AND TRUST COMPANY
Balance Sheets
(Dollars in thousands)
March 31, Dec. 31, March 31,
2007 2006 2006
-------- -------- --------
ASSETS (Unaudited) (Unaudited)
Cash and due from banks $ 9,017 $ 4,589 $ 1,760
Federal funds sold 5,200 475 100
-------- -------- --------
Cash and cash equivalents 14,217 5,064 1,860
Securities available for sale 20,857 20,738 22,888
Certificates of deposit 76 76 --
Federal Reserve Bank stock, at cost 675 693 766
Federal Home Loan Bank stock, at cost 914 728 534
Loans 116,627 106,910 70,550
Less: allowance for loan losses (1,444) (1,384) (958)
-------- -------- --------
Loans, net 115,183 105,526 69,592
Premises and equipment, net 2,137 2,217 2,059
Accrued interest receivable 700 613 529
Other assets 795 779 788
-------- -------- --------
Total Assets $155,554 $136,434 $ 99,016
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LIABILITIES AND
STOCKHOLDERS' EQUITY
Deposits $114,156 $ 99,745 $ 64,371
Short term borrowings 6,722 1,453 7,758
Long term debt 12,450 12,450 2,450
Other liabilities 567 701 425
-------- -------- --------
Total liabilities 133,895 114,349 75,004
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Stockholders' equity;
Common stock, $1.00 par value;
10,000,000 shares authorized;
3,567,450 shares issued and
outstanding at March 31,
2007 and 2006 3,567 3,567 3,567
Common stock warrants 853 853 853
Additional paid-in capital 29,600 29,582 29,545
Restricted stock unearned compensation (379) (426) (569)
Retained deficit (11,632) (10,994) (8,633)
Accumulated other comprehensive loss (350) (497) (751)
-------- -------- --------
Total stockholders' equity 21,659 22,085 24,012
-------- -------- --------
Total Liabilities and
Stockholders' Equity $155,554 $136,434 $ 99,016
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