HARTFORD, Conn., Jan. 30, 2008 (PRIME NEWSWIRE) -- The Connecticut Bank and Trust Company (Nasdaq:CTBC) today announced its financial results for the fourth quarter of 2007. The net loss for the quarter ended December 31, 2007 was $388,000, or $0.11 per share, compared to a net loss of $610,000, or $0.17 per share, for the comparable period a year earlier. The fourth quarter loss also improved from the immediately preceding quarter decreasing $142,000, or 27%. Total assets rose $42.3 million from $136.4 million at December 31, 2006 to $178.7 million at December 31, 2007.
The results of operation for the year ended December 31, 2007 reflected improvement with a reduction in the net loss of $1.1 million, or 34%, to a net loss of $2.1 million, or $0.61 per share, compared to a net loss of $3.2 million, or $0.92 per share, for the year ended December 31, 2006.
Chairman and CEO David A. Lentini remarked, "I am encouraged by the financial results for 2007 especially given the very tough interest rate environment that existed throughout the year. We have completed our branch expansion plan with the addition of our Rocky Hill office in October 2007. With our seven banking centers located in and around the Hartford market, we are confident we can support all of our clients. I am also pleased to report that CBT has not engaged in any subprime lending activities. We will now concentrate on profitability, expanding our customer base, and continuing to provide high-touch service."
Results of Operations. For the three month period ended December 31, 2007, net interest income increased $367,000, or 32%, to $1.5 million compared to $1.2 million for the quarter ended December 31, 2006. The overall yield on assets rose from 7.00% to 7.04% and similarly the cost of funding rose from 4.41% to 4.46% for the comparable period a year earlier. The net interest margin (NIM) has continued to tighten and was 3.64% for the three month period ended December 31, 2007 compared to 3.74% for the comparable period a year earlier.
Net interest income rose 35% from $4.1 million for the year ended December 31, 2006 to $5.5 million for the year ended December 31, 2007.
Chief Financial Officer Anson Hall commented, "The Federal Open Market Committee (FOMC) lowered its target rates three times totaling 100 basis points from September to December 2007, and we maintained a fairly stable net interest margin. After reaching a low of 3.46% in the second quarter our NIM for all of 2007 was 3.59%, down from 3.85% for 2006. The FOMC has continued to cut rates in 2008, and we have had to continue adjusting our loan rates downward, while competitive pressures slow the rate of decline for deposits."
Noninterest expenses increased $202,000, or 11%, to $2.0 million for the quarter ended December 31, 2007 compared to $1.8 million for the comparable period a year earlier. Expenses related to opening and operating the two new branches in 2007, Windsor and Rocky Hill, are chiefly responsible for the increase. Other increases included higher maintenance and support costs for our core banking software and the employment of consultants to assist in developing CBT's Sarbanes-Oxley compliance program. General and Administrative expenses decreased $31,000 primarily as a result of cost containment efforts.
Balance Sheet Performance. Total assets at December 31, 2007, were $178.7 million, an increase of $42.3 million from the $136.4 million reported at December 31, 2006. During 2007, total loans outstanding increased $35.8 million to $142.7 million. Cash and cash equivalents totaling $11.5 million, an increase of $6.4 million from 2006, provides liquidity and a source for funding future loan growth. Deposits totaled $137.8 million, increasing $38.0 million from year end 2006. Management also added $5.0 million in long term debt. Stockholders' equity at December 31, 2007 was $20.4 million compared to $22.1 million at December 31, 2006 and primarily reflects the operating loss for the year ended December 31, 2007. Other components of stockholder's equity noting improvement were the unamortized portion of stock-related compensation and a rise in the market value of the Bank's investment portfolio. CBT's equity ratio remains strong at 11.44%
Asset Quality. The allowance for loan losses at December 31, 2007 was $1.7 million compared to $1.4 million at December 31, 2006. This represents 1.19% and 1.29% of outstanding loans at the respective dates and reflects the risk in the portfolio. There were no charge-offs during the quarter.
At December 31, 2007, six loans totaling $599,000 were classified as nonperforming loans compared to two loans totaling $597,000 at December 31, 2006. The coverage ratio which measures the allowance for loan and lease losses to total nonperforming loans was 283% at December 31, 2007 compared to 232% at the prior year end.
CBT is a full service commercial bank headquartered in Hartford, CT, with banking centers conveniently located in Glastonbury, Newington, Rocky Hill, 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 Sept. 30, Dec. 31, March 31,
except per share 2006 2006 2007
---------------------------------------- -------- --------
Total assets (EOP) $123,325 $136,434 $155,554
Net loss $ (844) $ (610) $ (638)
Net interest margin 3.69% 3.75% 3.70%
Net interest spread 2.57% 2.59% 2.57%
Ratio of total stockholders'
equity to total assets (EOP) 18.35% 16.19% 13.92%
Weighted Avg shrs outstanding 3,524 3,531 3,531
Loss per share $ (0.24) $ (0.17) $ (0.18)
Book value per share (EOP) $ 6.34 $ 6.19 $ 6.07
Allowance for loan losses to
total loans (EOP) 1.34% 1.29% 1.24%
Three months ended
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June 30, Sept 30, Dec. 31,
2007 2007 2007
---------------------------------------- -------- --------
Total assets (EOP) $169,816 $181,457 $178,739
Net loss $ (592) $ (530) $ (388)
Net interest margin 3.46% 3.58% 3.64%
Net interest spread 2.49% 2.54% 2.58%
Ratio of total stockholders'
equity to total assets (EOP) 12.25% 11.35% 11.44%
Weighted Avg shrs outstanding 3,534 3,537 3,544
Loss per share $ (0.17) $ (0.15) $ (0.11)
Book value per share (EOP) $ 5.83 $ 5.77 $ 5.72
Allowance for loan losses to
total loans (EOP) 1.22% 1.23% 1.19%
Year ended
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Dec. 31, Dec. 31,
2006 2007
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Total assets (EOP) $136,434 $178,739
Net loss $ (3,238) $ (2,148)
Net interest margin 3.85% 3.59%
Net interest spread 2.65% 2.53%
Ratio of total stockholders'
equity to total assets (EOP) 16.19% 11.44%
Weighted Avg shrs outstanding 3,524 3,542
Loss per share $ (0.92) $ (0.61)
Book value per share (EOP) $ 6.19 $ 5.72
Allowance for loan losses to
total loans (EOP) 1.29% 1.19%
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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.
THE CONNECTICUT BANK AND TRUST COMPANY
Statements of Operations
(Dollars in thousands,except share data)
Three Months Ended Year Ended
December 31, December 31,
------------------- -------------------
2007 2006 2007 2006
-------- -------- -------- --------
(Unaudited) (Unaudited)
Interest and dividends:
Loans, including fees $ 2,584 $ 1,859 $ 9,292 $ 6,054
Debt securities 257 231 1,006 963
Dividends 33 40 104 82
Federal funds sold 81 35 421 51
-------- -------- -------- --------
Total interest and
dividend income 2,955 2,165 10,823 7,150
-------- -------- -------- --------
Interest expense:
Deposits 1,216 866 4,541 2,469
Borrowed funds 214 141 742 584
-------- -------- -------- --------
Total interest expense 1,430 1,007 5,283 3,053
-------- -------- -------- --------
Net interest income 1,525 1,158 5,540 4,097
Provision for loan losses 70 106 308 516
-------- -------- -------- --------
Net interest income,
after provision for
loan losses 1,455 1,052 5,232 3,581
-------- -------- -------- --------
Non-interest income:
Service charges and fees 47 30 174 98
Brokerage fee income 73 87 262 95
Net gain/(loss) from
sale of available-for-
sale securities 1 (17) (41) (17)
-------- -------- -------- --------
Total non-interest income 121 100 395 176
-------- -------- -------- --------
Non-interest expenses:
Salaries and benefits 1,066 1,043 4,342 3,890
Occupancy and equipment 426 326 1,493 1,202
Data processing 77 53 234 174
Marketing 101 81 440 649
Professional services 165 99 524 444
Other general and
administrative 129 160 742 636
-------- -------- -------- --------
Total non-interest
expenses 1,964 1,762 7,775 6,995
-------- -------- -------- --------
Net loss $ (388) $ (610) $ (2,148) $ (3,238)
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Net loss per share:
Basic $ (0.11) $ (0.17) $ (0.61) $ (0.92)
Diluted $ (0.11) $ (0.17) $ (0.61) $ (0.92)
Balance Sheets
December 31, 2007 and 2006
(Dollars in Thousands)
2007 2006
--------- ---------
ASSETS Unaudited)
Cash and due from banks $ 3,411 $ 4,589
Federal funds sold 8,080 475
--------- ---------
Cash and cash equivalents 11,491 5,064
Securities available for sale, at fair value 19,894 20,738
Certificates of deposit 76 76
Federal Reserve Bank stock, at cost 635 693
Federal Home Loan Bank stock, at cost 945 728
Loans 142,686 106,910
Allowance for loan losses (1,693) (1,384)
--------- ---------
Loans, net 140,993 105,526
Premises and equipment, net 3,053 2,217
Accrued interest receivable 830 613
Other assets 822 779
--------- ---------
$ 178,739 $ 136,434
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LIABILITIES AND
STOCKHOLDERS' EQUITY
Deposits $ 137,800 $ 99,745
Short-term borrowings 2,255 1,453
FHLB Advances 17,450 12,450
Other liabilities 793 701
--------- ---------
Total liabilities 158,298 114,349
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Stockholders' equity;
Common stock, $1.00 par value;
10,000,000 shares authorized; shares
issued and outstanding: 3,572,450 at
December 31, 2007 and 3,567,450 at
December 31, 2006 3,572 3,567
Common stock warrants 853 853
Additional paid-in capital 29,700 29,582
Restricted stock unearned compensation (279) (426)
Retained deficit (13,142) (10,994)
Accumulated other comprehensive loss (263) (497)
--------- ---------
Total stockholders' equity 20,441 22,085
--------- ---------
$ 178,739 $ 136,434
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