SBT Bancorp, Inc. Reports Record Third Quarter 2012 Results

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SBT Bancorp, Inc. Reports Record Third Quarter 2012 Results

SIMSBURY, Conn.--(BUSINESS WIRE)-- SBT Bancorp, Inc., (OTCBB: SBTB), the holding company for Simsbury Bank & Trust Company, today announced net income of $506,000 or $0.55 per diluted share, for the quarter ended September 30, 2012 compared to $258,000 or $0.10 per diluted share, for the quarter ended September 30, 2011.

For the nine months ended September 30, 2012, net income amounted to $1,440,000, or $1.51 per diluted share, compared to $543,000, or $0.28 per diluted share, for the nine months ended September 30, 2011. Total assets on September 30, 2012 were $369 million.


Key financial highlights for the third quarter of 2012 compared to the third quarter of 2011 include significant growth in earnings, continued loan and deposit growth, favorable asset quality, and a well capitalized regulatory capital position:

  • Third quarter 2012 net income of $506 thousand was the highest level of quarterly net income in the history of SBT Bancorp
  • Quarterly net income increased $248 thousand or 96%
  • Third quarter earnings per share increased by $0.45, from $0.10 to $0.55 per diluted common share
  • Noninterest income increased by $514 thousand or 87%
  • Loans outstanding grew by $17 million or 8%
  • Total deposits grew by $14 million or 5%
  • Asset quality remained very favorable with total non-accrual loans and loans 30 or more days past due decreasing to 0.69% of loans outstanding on September 30, 2012 from 1.34% of loans outstanding on September 30, 2011
  • The Bank's Total Risk Based Capital ratio ended the third quarter of 2012 at 14.95%

"Solid growth in revenue, loans and deposits produced the best quarter of earnings in the history of SBT Bancorp," stated SBT Bancorp President and CEO, Martin J. Geitz. "Our asset quality continues to be excellent, with total loan delinquency well below 1.00% of total loans at quarter end. We remain focused on growing the company's revenue and building value for our shareholders."

On September 30, 2012, loans outstanding were $227 million, an increase of $17 million, or 8%, over a year ago. With a loan loss provision of $60 thousand during the quarter, the Company's allowance for loan losses at September 30, 2012 was 1.09% of total loans. The profile of the Company's loan portfolio remains relatively low-risk. The Company had non-accrual loans totaling $0.6 million equal to 0.33% of total loans on September 30, 2012 compared to non-accrual loans totaling $2.0 million or 0.83% of total loans a year ago. Total non-accrual loans and loans 30 or more days delinquent decreased from 1.34% of loans outstanding on September 30, 2011 to 0.69% of loans outstanding on September 30, 2012.

Total deposits on September 30, 2012 were $333 million, an increase of $14 million or 5% over a year ago. This growth was mainly in Core deposits (Demand, Savings and NOW accounts). At quarter-end, 21% of total deposits were in non-interest bearing demand accounts, 56% were in low-cost savings and NOW accounts and 23% were in time deposits.

Total revenues, consisting of net interest and dividend income plus noninterest income, were $3,677,000 in the third quarter of 2012 compared to $3,164,000 a year ago, an increase of $513 thousand or 16%. Net interest and dividend income was materially unchanged, while noninterest income increased by $514 thousand or 87% primarily due to an increase in the gain on loans sold.

The Company's taxable-equivalent net interest margin (taxable-equivalent net interest and dividend income divided by average earning assets) decreased by 8 basis points from 3.11% for the third quarter of 2011 to 3.03% for the third quarter of 2012. The Company's cost of funds declined by 21 basis points during the third quarter of 2012 compared to the third quarter of 2011. Yield on assets declined by 25 basis points over this same period.

Total noninterest expenses for the third quarter were $2,964,000, an increase of $277 thousand or 10% over the third quarter of 2011. Salaries and employee benefit expenses increased by $261 thousand or 19%. Advertising and promotions expenses increased by $35 thousand or 25%. Professional fees decreased by $114 thousand or 49%. The increase in expenses was primarily attributable to strategic initiatives targeted to grow revenues. For the nine months ended September 30, 2012 total noninterest expenses were $8,557,000 compared to $8,081,000 for the nine months ended September 30, 2011, an increase of $476 thousand or 6%.

Capital levels for the Simsbury Bank & Trust Company on September 30, 2012 were above those required to meet the regulatory "well-capitalized" designation.

Simsbury Bank is an independent, local bank for consumers and businesses with region-wide strength in mortgage and commercial banking. The Bank serves customers through full-service offices in Avon, Bloomfield, Granby and Simsbury, Connecticut; mortgage loan originators throughout Connecticut and a mortgage loan production office in Canton, Connecticut; commercial bankers covering Central Connecticut; Simsbury Bank Online internet banking at simsburybank.com; free ATM transactions at hundreds of 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. Simsbury Bank is wholly-owned by publicly traded SBT Bancorp, Inc. Its stock 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 for per share amounts)
 
 9/30/2012  12/31/2011  9/30/2011 
(unaudited)(unaudited)

ASSETS

Cash and due from banks$6,807$19,217$7,656
Interest-bearing deposits with Federal Reserve Bank of Boston32,33865,29264,699
Interest-bearing deposits with the Federal Home Loan Bank212
Federal funds sold2,4762,0242,036
Money market mutual funds 365  5,346  5,346 
Cash and cash equivalents41,98891,88079,739
 
Interest-bearing time deposits with other bank3,7524,7284,684
Investments in available-for-sale securities (at fair value)86,27456,85949,443
Federal Home Loan Bank stock, at cost589660660
 
Loans outstanding227,224216,552210,592
Less allowance for loan losses 2,482  2,469  2,429 
Loans, net 224,742  214,083  208,163 
 
Premises and equipment841679505
Other real estate owned323--
Accrued interest receivable961964922
Bank owned life insurance6,3254,1734,133
Other assets 2,903  3,013  2,908 
Total other assets 11,353  8,829  8,468 
 
 
TOTAL ASSETS$368,698 $377,039 $351,157 
 

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:
Demand deposits$70,100$103,778$61,269
Savings and NOW deposits188,259164,318181,888
Time deposits 74,969  76,681  75,761 
Total deposits333,328344,777318,918
 
Securities sold under agreements to repurchase4,6153,5483,908
Due to broker---
Other liabilities 1,528  1,271  1,078 
Total liabilities 339,471  349,596  323,904 
 
Stockholders' equity:
Preferred Stock - Series A---
Preferred Stock - Series B---
Preferred Stock - Series C8,9618,9528,947

Common Stock, no par value; authorized 2,000,000 shares; issued 877,746 shares on 9/30/12, 876,808 shares on 12/31/11, and 876,596 shares on 9/30/11, respectively

9,6399,6209,616
Treasury Stock, 414 shares(7)(7)-
Unearned compensation restricted stock awards(141)(199)(225)
Retained earnings9,3648,3608,156
Accumulated other comprehensive income 1,411  717  759 
Total stockholders' equity 29,227  27,443  27,253 
 
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$368,698 $377,039 $351,157 
 

 

SBT Bancorp, Inc.

Condensed Consolidated Statements of Income
(Unaudited)
    
(Dollars in thousands, except for per share amounts)
 
For the quarter endedFor the nine months ended
 9/30/2012 9/30/2011 9/30/2012 9/30/2011
 
Interest and dividend income:
Interest and fees on loans$2,352$2,520$7,288$7,436
Investment securities4644161,3461,250
Federal funds sold and overnight deposits 23 30 81 69
Total interest and dividend income 2,839 2,966 8,715 8,755
 
Interest expense:
Deposits2633837841,180
Repurchase agreements 1 7 3 21
Total interest expense 264 390 787 1,201
 
Net interest and dividend income2,5752,5767,9287,554
 
Provision for loan losses 60 165 210 330
 

Net interest and dividend income after provision for loan losses

2,5152,4117,7187,224
 
Noninterest income:
Service charges on deposit accounts121129361377
Gain on sales of available-for-sale securities3011678384
Other service charges and fees235162558424

Increase in cash surrender value of life insurance policies

5740152120
Gain on loans sold6091031,491215
Investment services fees and commissions4936120139
Other income 1 2 2 49
Total noninterest income 1,102 588 2,762 1,708
 
Noninterest expense:
Salaries and employee benefits1,6581,3974,6484,212
Premises and equipment3393301,0021,023
Advertising and promotions174139506357
Forms and supplies4243
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