SBT Bancorp, Inc. Reports Third Quarter 2009 Results
SIMSBURY, Conn., Nov 06, 2009 (BUSINESS WIRE) --
Company: SBT Bancorp Inc (SBTB)
SBT Bancorp, Inc. (OTCBB: SBTB), holding company for The Simsbury Bank & Trust Company, today announced third quarter 2009 net income of $160,000 and net income available to common shareholders of $95,000 or $0.11 per diluted share. This compares to a net loss of $1,556,000 or $1.80 per diluted share for the third quarter of 2008. For the nine months ended September 30, 2009, net income amounted to $527,000 and net income available to common shareholders equaled $395,000 or $0.46 per diluted share. This compares to a net loss of $931,000 or $1.09 per diluted share for the nine months ended September 30, 2008.
Key items for the quarter include:
-- Net income increased substantially compared to the third quarter of 2008 because of non-recurring items discussed below that impacted 2008 earnings.
-- Excluding the non-recurring items, net income for the quarter increased by $48,000 or 43% and diluted earnings per share declined by $0.02 compared to 2008 third quarter. Year to date, excluding non-recurring items, net income increased by $118,000 or 29% and diluted earnings per share declined by $0.01.
-- Strong growth in both retail and municipal deposits resulted in a 30% increase in total deposits compared to September 30, 2008.
-- Loans outstanding grew to $195 million, an increase of $16 million, or 9%, compared to September 30, 2008.
-- The loan portfolio experienced an increase in delinquencies during the quarter, but the overall quality of the loan portfolio remains very sound.
-- The Company's capital position remained very strong, with capital ratios well in excess of well-capitalized regulatory standards.
"The very strong deposit growth we have experienced over the past few quarters is a clear indication that Simsbury Bank is a strong and vibrant banking partner during this time of economic uncertainty," said Martin J. Geitz, SBT Bancorp President & CEO. "Very low short-term interest rates, including bank prime lending rates, coupled with increasing loan delinquencies continue to negatively impact earnings at all financial institutions. Though we have seen an increase in loan delinquencies recently, the overall quality of our loan portfolio remains very sound. As we manage through this difficult economic period, we will continue to focus on increasing shareholder value by building profitable banking relationships, diversifying our sources of revenue, and serving our customers' full range of financial services needs."
The Company's previous year's net income was impacted by two major items: (1) non-recurring income of $328,000 for Bank Owned Life Insurance death benefits occurring in the quarter ending June 30, 2008 and (2) an other-than-temporary-impairment ("OTTI") charge on Fannie Mae and Freddie Mac preferred stock of $1,668,000 in the quarter ending September 30, 2008. Excluding these items, third quarter 2008 net income and net income available to common shareholders would have been $112,000 or $0.13 per diluted share, and September 30, 2008 year to date net income and net income available to common shareholders would have been $409,000 or $0.47 per share. The following table compares 2009 to 2008 excluding these non-recurring items:
Excluding 2008 Non-Recurring Items
For the Quarter Ended Year to Date
09/30/09 09/30/08 09/30/09 09/30/08
Net Income (000) $160 $112 $527 $409
Income Available to Common Shareholders (000) $95 $112 $395 $409
Diluted Income Per Share $0.11 $0.13 $0.46 $0.47
On September 30, 2009, loans outstanding were $195 million, an increase of $16 million, over a year ago. Since September 30, 2008, commercial loans increased by 11% and residential mortgages by 12%. Mortgage loan growth does not reflect the $23 million in mortgages originated but sold as part of the Bank's asset/liability management strategy. Sale of these mortgages resulted in a $17,000 contribution to fee income for the quarter and $60,000 year to date. The Company also purchased a $9.9 million pool of high quality, seasoned, short-term residential mortgage loans during the quarter. At September 30, 2009, loans 30 days or more past due, including non-performing loans, totaled $4.4 million, or 2.28% of total loans compared to $2.6 million, or 1.46% at June 30, 2009. Non-performing loans were $2.5 million, or 1.27% of total loans compared to $1.4 million at June 30, 2009, or 0.78% of loans. With a loan loss provision of $192,000 during the quarter, the Company's allowance for loan losses at September 30, 2009 was $2.138 million or 1.10% of total loans compared to the June 30, 2009 total of $2.036 million or 1.14% of total loans. The Company has no foreclosed properties or Other Real Estate Owned (OREO) in its portfolio.
Core deposits (Demand, Savings, and NOW accounts) grew by $33 million or 24% over the past twelve months. Total deposits ended the quarter at $264 million, an increase of $61 million, or 30%, over a year ago. The Bank's deposit mix continued to be favorable with 27% checking (Demand and Now accounts), 37% savings and 36% certificates of deposit contributing to a relatively low cost of funds of 1.19%. A seasonal inflow of municipal tax deposits contributed to the deposit increase.
The Company's taxable-equivalent net interest margin (taxable-equivalent net interest and dividend income divided by average earning assets) decreased by 15 basis points from 3.57% in the second quarter of 2009 to 3.42% in the third quarter of 2009. The margin declined by 70 basis points when compared to the third quarter of 2008.
Total revenues, consisting of net interest and dividend income plus non-interest income, were $2,752,000 in the third quarter of 2009. Revenues for the third quarter of 2008 were impacted by a non-recurring "OTTI" charge on Fannie Mae and Freddie Mac preferred stock of $1,668,000. Excluding this item, third quarter 2008 total revenues were $2,446,000. Compared to 2008, third quarter 2009 total revenues, excluding non-recurring items, increased by $306,000, or 13%. The primary contributor to revenue enhancement over this period was an increase in net interest income resulting from deposit, loan, and investment portfolio growth.
Total non-interest expenses for the third quarter were $2,367,000, an increase of $125,000 or 5% over the third quarter of 2008 primarily due to an increase in FDIC insurance premiums. Salary and benefit expenses decreased by $139,000 or 13% compared to the third quarter of 2008. Premises and equipment expenses declined $143,000 or 28% compared to the third quarter of 2008.
Capital levels for The Simsbury Bank & Trust Company remain well in excess of those required to meet the regulatory "well-capitalized" designation.
Capital Ratios 09/30/09
The Simsbury Bank Regulatory Standard For
& Trust Company Well-Capitalized
Tier 1 Leverage Capital Ratio 7.01% 5.00%
Tier 1 Risk-Based Capital Ratio 12.10% 6.00%
Total Risk-Based Capital Ratio 13.35% 10.00%
SBT Bancorp Inc.'s wholly owned subsidiary, Simsbury Bank & Trust Company, is an independent, locally-controlled, customer-friendly commercial bank for businesses and consumers. The Bank has approximately $287 million in assets. The Bank serves customers through full-service offices in Avon, Bloomfield, Granby and Simsbury, Connecticut; SBT Online internet banking at simsburybank.com; free ATM transactions at 2,800 machines throughout the northeastern U.S. via the SUM program; and 24 hour telephone banking. The Bank's wholly-owned subsidiary, SBT Investment Services, Inc., offers securities and insurance products through LPL Financial and its affiliates, Member FINRA/SIPC. SBT Bancorp, Inc. is traded over-the-counter under the ticker symbol of OTCBB: SBTB. For more information, visit www.simsburybank.com.
Certain statements in this press release, including statements regarding the intent, belief or current expectations of SBT Bancorp, Inc., The Simsbury Bank & Trust Company, or their directors or officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.
SBT BANCORP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
9/30/2009 12/31/2008 9/30/2008
(Unaudited) (Unaudited)
ASSETS
Cash and due from banks $ 10,272 $ 11,392 $ 11,319
Interest-bearing deposits with Federal Home Loan Bank 89 116 2,949
Federal funds sold 10,213 1,800 8,985
Money market mutual funds 3,329 3,027 27
Cash and cash equivalents 23,903 16,335 23,280
Interest-bearing time deposits with other bank 5,443 7,320 -
Investments in available-for-sale securities (at fair value) 54,656 32,997 16,829
Federal Home Loan Bank Stock, at cost 631 631 631
Loans outstanding 195,349 180,091 179,608
Less allowance for loan losses 2,138 2,017 1,822
Loans, net 193,211 178,074 177,786
Premises and equipment 705 846 910
Accrued interest receivable 1,032 836 745
Bank owned life insurance 3,803 1,204 1,192
Due from broker 1,195 - -
Other assets 2,230 2,513 1,760
Total other assets 8,965 5,399 4,607
TOTAL ASSETS $ 286,809 $ 240,756 $ 223,133
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Demand deposits $ 40,011 $ 38,288 $ 37,418
Savings and NOW deposits 131,049 98,264 100,880
Time deposits 92,454 84,327 63,696
Total deposits 263,514 220,879 201,994
Federal Home Loan Bank advance - 1,000 3,000
Securities sold under agreements to repurchase 741 577 900
Other liabilities 1,025 1,454 1,012
Total liabilities 265,280 223,910 206,906
Stockholder's equity:
Preferred Stock - Class A 3,793 - -
Preferred Stock - Class B 227 - -
Common stock, no par value; authorized 2,000,000 shares; issued 9,365 9,328 9,292
and outstanding 864,976 shares on 9/30/09, 12/31/2008 and 9/30/2008
Retained earnings 7,759 7,543 7,256
Accumulated other comprehensive loss 385 (25 ) (321 )
Total shareholders' equity 21,529 16,846 16,227
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 286,809 $ 240,756 $ 223,133
SBT BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except for per share amounts)
For the quarter ended For the nine months ended
9/30/2009 9/30/2008 9/30/2009 9/30/2008
Interest and dividend income
Interest and fees on loans $ 2,447 $ 2,522 $ 7,254 $ 7,330
Investment securities 528 228 1,428 813
Federal funds sold and overnight deposits 12 41 21 126
Total interest and dividend income 2,987 2,791 8,703 8,269
Interest expense
Deposits 680 658 2,224 2,202
Repurchase agreements 3 11 7 44
Federal Home Loan Bank advances - 2 7 4
Total interest expense 683 671 2,238 2,250
Net interest and dividend income 2,304 2,120 6,465 6,019
Provision for loan losses 192 50 322 250
Net interest and dividend income after provision for loan losses 2,112 2,070 6,143 5,769
Noninterest income (charge)
Service charges on deposit accounts 159 129 395 363
Gain on sales of available for sale securities 40 - 40 10
Write-downs of available for sale securities - (1,668 ) - (1,668 )
Other service charges and fees 145 154 413 436
Increase in cash surrender value of life insurance policies 45 11 100 49
BOLI death benefit income - - - 328
Gain on loans sold 17 - 60 -
Investment services fees and commissions 27 20 74 66
Other income 15 12 61 56
Total noninterest income (charge) 448 (1,342 ) 1,143 (360 )
Noninterest expense
Salaries and employee benefits 964 1,103 3,033 3,144
Premises and equipment 373 516 1,109 1,293
Advertising and promotions 128 109 307 279
Forms and supplies 50 35 138 118
Professional fees 125 97 395 197
Directors fees 33 34 99 101
Correspondent charges 67 61 206 173
Postage 28 20 77 78
Other expenses 599 267 1,217 774
Total noninterest expense 2,367 2,242 6,581 6,157
Income (loss) before taxes 193 (1,514 ) 705 (748 )
Income tax provision 33 42 178 183
Net income (loss) $ 160 $ (1,556 ) $ 527 $ (931 )
Less: Preferred stock dividend and accretion $ 65 $ - $ 132 $ -
Net income (loss) available to common shareholders $ 95 $ (1,556 ) $ 395 $ (931 )
Average shares outstanding, basic 864,976 864,976 864,976 858,369
Net income (loss) available per common share, basic $ 0.11 $ (1.80 ) $ 0.46 $ (1.09 )
Average shares outstanding, assuming dilution 864,976 864,976 864,976 858,369
Net income (loss) available per common share, assuming dilution $ 0.11 $ (1.80 ) $ 0.46 $ (1.09 )
SOURCE: SBT Bancorp, Inc.
SBT Bancorp, Inc. The Simsbury Bank & Trust Company Anthony F. Bisceglio, 860-408-5493 EVP & CFO 860-408-4679 (fax) abisceglio@simsburybank.com
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Company: SBT Bancorp Inc (SBTB)
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