HARTFORD, Conn., Oct. 18, 2007 (PRIME NEWSWIRE) -- The Connecticut Bank and Trust Company (Nasdaq:CTBC) today announced its financial results for the third quarter of 2007. The net loss for the quarter ending September 30, 2007 was $530,000 or $0.15 per share, decreasing $344,000 or 37%, compared to a net loss of $844,000 or $0.24 per share for comparable period a year earlier. The quarterly net loss also improved from the immediately preceding quarter decreasing $62,000, or 10%. CBT also reported that total assets rose $45 million from December 31, 2006 to $181.5 million at September 30, 2007.
The results of operation for the nine months ended September 30, 2007 also reflected improvement with a reduction in the loss of $868,000, or 33%, to a loss of $1.8 million or $0.50 per share compared to a loss of $2.6 million or $0.75 per share for the nine months ended September 30, 2006.
Chairman and CEO David A. Lentini remarked, "CBT's financial results have shown improvement throughout 2007. I am confident that our results will continue to improve as our asset base continues to expand." Lentini added, "Our financial results to date reflect the considerable planned expenditures of our just completed branch expansion plan. This month we opened our 7th banking center, located in Rocky Hill. Our locations provide us with a geographic footprint from which we can meet the financial services needs of both business owners and consumers."
Results of Operations. For the three month period ended September 30, 2007, net interest income increased $442,000 to $1.5 million compared to $1.0 million for the quarter ended September 30, 2006. Noninterest income increased $76,000 to $109,000, and noninterest expense increased $243,000 to $2,006,000 for the same period a year earlier. The provisions for loan losses were $111,000, decreasing $39,000 from a year earlier.
The net interest margin (NIM) was 3.58% for the three month period ending September 30, 2007 compared to 3.69% for the comparable period a year earlier. The overall yield on assets improved 25 basis points to 7.03% while the costs associated with interest bearing liabilities rose 28 basis points to 4.49%, resulting in an overall decline in the net interest spread of 3 basis points.
CEO Lentini commented, "There are significant competitive pressures for both the origination of commercial loans and the gathering of deposits to support our growth. Net interest income, one of our key financial metrics, has tightened over the past year as a result. We remain focused on gathering low cost core deposits to ensure a net interest spread that will lead to profitability."
Noninterest income totaled $109,000 for the quarter ended September 30, 2007 compared to $33,000 for the quarter ended September 30, 2006. Service charges and fees on deposit accounts increased $19,000 to $44,000 and retail brokerage commission revenue increased $57,000 to $65,000 for the quarter ended September 30, 2007 compared to the comparable period a year earlier. CBT commenced offering retail brokerage services to its customers in the third quarter of 2006.
Noninterest expenses increased $243,000, or 14%, to $2.0 million in the quarter ended September 30, 2007 compared to $1.8 million for the comparable period a year earlier. The further development of the branch network are principally responsible for increased compensation costs of $92,000 to $1.1 million and increased occupancy costs of $73,000 to $386,000 for the quarter ending September 30, 2007. Professional services increased $45,000 resulting from consulting services, and other expenses increased $34,000 primarily as a result of FDIC insurance premiums compared to the same period a year earlier.
Balance Sheet Performance. Total assets at September 30, 2007, were $181.5 million, an increase of $45.1 million from the $136.4 million reported at December 31, 2006. The loan portfolio totaled $132.2 million at September 30, 2007 with a $25.3 million increase in loans from year end 2006. Cash and cash equivalents increased $18.9 million from year end 2006 and provide liquidity and a source for funding future loan growth. Deposits totaled $140.6 million, increasing $40.8 million from year end 2006. Management also added $5 million in long term debt. Stockholders' equity at September 30, 2007 was $20.1 million compared to $22.1 million at December 31, 2006 and primarily reflects the operating losses for the period ending September 30, 2007.
Asset Quality. The allowance for loan losses at September 30, 2007 was $1.6 million compared to $1.4 million at December 31, 2006. This represents 1.23% 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 September 30, 2007, three loans totaling $621,000 were classified as nonperforming loans, unchanged from the prior quarter, and 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 261% at September 30, 2007 compared to 243% at June 30, 2007.
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Selected Performance Data
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Three months ended
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Dollar values
in thousands
except per June 30, Sept. 30, Dec. 31, March 31, June 30, Sept. 30,
share data 2006 2006 2006 2007 2007 2007
------------------ -------- -------- -------- -------- --------
Total
assets
(EOP) $112,462 $123,325 $136,434 $155,554 $169,816 $181,457
Net
operating
loss $ (908) $ (844) $ (610) $ (638) $ (592) $ (530)
Net
interest
margin 3.86% 3.69% 3.74% 3.70% 3.46% 3.58%
Net
interest
spread 2.72% 2.57% 2.59% 2.57% 2.49% 2.54%
Ratio of
total
stock-
holders'
equity to
total
assets
(EOP) 20.47% 18.35% 16.19% 13.92% 12.25% 11.35%
Weighted
avg
shrs
out-
standing 3,521 3,524 3,531 3,531 3,534 3,537
Loss
per
share $ (0.26) $ (0.24) $ (0.17) $ (0.18) $ (0.17) $ (0.15)
Book
value
per
share
(EOP) $ 6.45 $ 6.34 $ 6.19 $ 6.07 $ 5.83 $ 5.77
Allowance
for loan
losses
to total
loans
(EOP) 1.37% 1.34% 1.29% 1.24% 1.22% 1.23%
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Nine months ended
-----------------------
Dollar values in thousands Sept. 30, Sept. 30,
except per share 2006 2007
-----------------------
Total assets (EOP) $ 123,325 $ 181,457
Net operating loss $ (2,628) $ (1,760)
Net interest margin 3.89% 3.57%
Net interest spread 2.69% 2.54%
Ratio of total stockholders'
equity to total assets (EOP) 18.35% 11.35%
Weighted avg shrs outstanding 3,520 3,533
Loss per share $ (0.75) $ (0.50)
Book value per share (EOP) $ 6.34 $ 5.77
Allowance for loan losses to
total loans (EOP) 1.34% 1.23%
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
Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2007 2006 2007 2006
-------- -------- -------- --------
(Dollars in thousands (Unaudited) (Unaudited)
except per share data)
Interest and dividend
income:
Loans, including fees $ 2,423 $ 1,661 $ 6,708 $ 4,195
Debt securities 254 233 749 732
Federal funds sold 196 -- 340 16
Other 26 13 71 42
-------- -------- -------- --------
Total interest and
dividend income 2,899 1,907 7,868 4,985
-------- -------- -------- --------
Interest expense:
Deposits 1,236 650 3,325 1,598
Borrowed funds 185 221 528 448
-------- -------- -------- --------
Total interest expense 1,421 871 3,853 2,046
-------- -------- -------- --------
Net interest income 1,478 1,036 4,015 2,939
Provision for loan losses 111 150 238 410
-------- -------- -------- --------
Net interest income, after
provision for loan losses 1,367 886 3,777 2,529
-------- -------- -------- --------
Non-interest income:
Service charges and fees 44 25 127 68
Brokerage commissions 65 8 189 8
Net gain/(loss) from sales
of available-for-sale
securities -- -- (42) --
-------- -------- -------- --------
Total non-interest income 109 33 274 76
-------- -------- -------- --------
Non-interest expenses:
Salaries and benefits 1,104 1,012 3,276 2,846
Occupancy and equipment 386 313 1,067 876
Data processing 58 39 157 121
Marketing 118 138 339 568
Professional services 138 93 359 346
Other general and
administrative 202 168 613 476
-------- -------- -------- --------
Total non-interest
expenses 2,006 1,763 5,811 5,233
-------- -------- -------- --------
Net loss $ (530) $ (844) $ (1,760) $ (2,628)
======== ======== ======== ========
Net loss per share:
Basic $ (0.15) $ (0.24) $ (0.50) $ (0.75)
Diluted $ (0.15) $ (0.24) $ (0.50) $ (0.75)
THE CONNECTICUT BANK AND TRUST COMPANY
BALANCE SHEETS
(Dollars in Thousands)
ASSETS
September 30, December 31, September 30,
2007 2006 2006
(Unaudited) (Unaudited)
---------- ---------- ----------
Cash and due from banks $ 6,383 $ 4,589 $ 3,088
Federal funds sold 17,609 475 40
---------- ---------- ----------
Cash and cash equivalents 23,992 5,064 3,128
Securities available for sale 21,089 20,738 21,035
Interest bearing asset 76 76 76
Federal Reserve Bank stock,
at cost 635 693 770
Federal Home Loan Bank stock,
at cost 914 728 739
Loans 132,172 106,910 95,109
Less: allowance for loan losses (1,622) (1,384) (1,277)
---------- ---------- ----------
Loans, net 130,550 105,526 93,832
Premises and equipment, net 2,652 2,217 2,261
Accrued interest receivable 820 613 641
Other assets 729 779 843
---------- ---------- ----------
Total Assets $ 181,457 $ 136,434 $ 123,325
========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 140,607 $ 99,745 $ 87,453
Short term borrowings 2,028 1,453 10,071
Long term debt 17,450 12,450 2,450
Other liabilities 777 701 727
---------- ---------- ----------
Total liabilities 160,862 114,349 100,701
---------- ---------- ----------
Stockholders' equity;
Common stock, $1.00 par
value; 10,000,000 shares
authorized; 3,572,450 shares
issued and outstanding at
September 30, 2007 and
3,567,450 issued and
outstanding at
December 31, 2006 3,572 3,567 3,567
Common stock warrants 853 853 853
Additional paid-in capital 29,678 29,582 29,554
Restricted stock unearned
compensation (318) (426) (475)
Retained deficit (12,754) (10,994) (10,384)
Accumulated other
comprehensive loss (436) (497) (491)
---------- ---------- ----------
Total stockholders' equity 20,595 22,085 22,624
---------- ---------- ----------
Total Liabilities and
Stockholders' Equity $ 181,457 $ 136,434 $ 123,325
========== ========== ==========