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| 8-K - SBT BANCORP, INC. 8-K - SBT Bancorp, Inc. | a50349973.htm |
Exhibit 99.1
SBT Bancorp, Inc. Reports Second Quarter 2012 Results
SIMSBURY, Conn.--(BUSINESS WIRE)--July 24, 2012--SBT Bancorp, Inc., (OTCBB: SBTB), holding company for Simsbury Bank & Trust Company, today announced net income of $453,000 or $0.49 per diluted share for the second quarter of 2012, compared to $198,000 or $0.15 per diluted share for the second quarter of 2011.
For the six months ended June 30, 2012, net income amounted to $934,000, or $0.96 per diluted share. This compares to net income of $285,000 or $0.18 per diluted share for six months ended June 30, 2011. Total assets on June 30, 2012 were $340 million.
Key financial highlights for the second quarter of 2012 compared to the second quarter of 2011 include earnings growth, favorable asset quality trends, and a well capitalized regulatory capital position:
- Quarterly net income increased by $255 thousand or 129%
- Second quarter earnings per share increased by $0.34, from $0.15 to $0.49 per diluted common share
- Non-interest income increased by $373 thousand or 65%
- Net interest and dividend income increased by $114 thousand or 5%
- Asset quality remained very favorable with total non-accrual loans and loans 30 or more days past due decreasing to 0.44% of loans outstanding on June 30, 2012 from 1.17% of loans outstanding on June 30, 2011
- The Bank’s Total Risk Based Capital ratio ended the second quarter of 2012 at 14.99%
“Strong revenue growth produced solid second quarter earnings for SBT Bancorp,” stated SBT Bancorp President and CEO, Martin J. Geitz. “Our asset quality continues to be excellent, with total loan delinquency remaining 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.”
Total loans outstanding on June 30, 2012 were $223 million, an increase of $13 million or 6% over a year ago. Average loan balances for the quarter ending June 30, 2012 increased by $14 million or 7% compared to average loan balances for the quarter ending June 30, 2011. Residential mortgage loan average balances increased $6.4 million or 7% over last year’s second quarter. Commercial loan average balances increased $5.2 million or 10%. Consumer loan average balances increased $2.5 million or 4%. The profile of the Company’s loan portfolio remains relatively low-risk. Allowance for loan losses at June 30, 2012 was 1.10% of total loans. The Company had non-accrual loans of $0.8 million equal to 0.38% of total loans on June 30, 2012 compared to non-accrual loans of $2.1 million or 1.00% of total loans a year ago. Total delinquent loans decreased from 1.17% of loans outstanding on June 30, 2011 to 0.44% of loans outstanding on June 30, 2012.
Total deposits on June 30, 2012 were $308 million, a decrease of $1.6 million compared to total deposits a year ago. Prior year quarter-end, June 30, 2011, total deposits included a business checking account short-term deposit of $22 million that was deposited in late June 2011 and was withdrawn in early July 2011. Excluding this prior year quarter-end anomaly, total deposits for the quarter ending June 30, 2012 increased by $20 million or 7%. This growth was all in Core deposits (Demand, Savings and NOW accounts). Compared to June 30, 2011, demand deposits, excluding the prior year quarter-end anomaly, increased $8 million or 12%, savings and NOW deposits increased $14 million or 10%, and time deposits decreased by $1.5 million or 2%. At quarter end, 24% of total deposits were in non-interest bearing demand accounts, 52% were in low-cost savings and NOW accounts, and 24% were in time deposits.
Total revenues, consisting of net interest and dividend income plus noninterest income, were $3,616,000 in the second quarter compared to $3,129,000 a year ago, an increase of $487,000 or 16%. Net interest and dividend income increased by $114,000 or 5%, while noninterest income increased by $373,000 or 65% 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) was 3.34% for the second quarter of 2012, compared to 3.45% for the second quarter of 2011. The Company’s cost of funds declined 23 basis points while the yield on interest earning assets decreased 31 basis points during the second quarter of 2012, compared to the second quarter of 2011.
Total noninterest expenses increased by $205,000 or 7% to $2,946,000 for the second quarter 2012 compared to $2,741,000 in the second quarter 2011. This increase was mainly due to expenses related to growing the Bank’s revenues. Salaries and employee benefit expenses increased by $201,000. Advertising and promotion expenses increased by $66,000. Offsetting a portion of these expense increases were decreases in expenses for professional fees and FDIC assessment fees totaling $118,000.
Capital levels for the Simsbury Bank & Trust Company on June 30, 2012 were above those required to meet the regulatory “well-capitalized” designation.
Simsbury Bank is an independent, local bank for consumers and businesses. The Bank has approximately $340 million in assets. 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; 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) | ||||||||||||
| 6/30/2012 | 12/31/2011 | 6/30/2011 | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
|
ASSETS |
||||||||||||
|
Cash and due from banks |
$ | 8,101 | $ | 19,217 | $ | 7,381 | ||||||
| Interest-bearing deposits with Federal Reserve Bank of Boston | 17,737 | 65,291 | 38,939 | |||||||||
| Interest-bearing deposits with the Federal Home Loan Bank | 2 | 1 | 2 | |||||||||
| Federal funds sold | 2,314 | 2,024 | 4,138 | |||||||||
| Money market mutual funds | 348 | 5,346 | 9,344 | |||||||||
| Cash and cash equivalents | 28,502 | 91,879 | 59,804 | |||||||||
| Interest-bearing time deposits with other bank | 3,715 | 4,728 | 4,641 | |||||||||
| Investments in available-for-sale securities (at fair value) | 75,709 | 56,859 | 53,857 | |||||||||
| Federal Home Loan Bank stock, at cost | 589 | 660 | 660 | |||||||||
| Loans outstanding | 222,632 | 216,553 | 209,607 | |||||||||
| Less allowance for loan losses | 2,439 | 2,469 | 2,314 | |||||||||
| Loans, net | 220,193 | 214,084 | 207,293 | |||||||||
| Premises and equipment | 840 | 679 | 520 | |||||||||
| Other real estate owned | 372 | - | - | |||||||||
| Accrued interest receivable | 977 | 964 | 967 | |||||||||
| Bank owned life insurance | 6,268 | 4,173 | 4,093 | |||||||||
| Other assets | 2,652 | 3,013 | 3,141 | |||||||||
| Total other assets | 11,109 | 8,829 | 8,721 | |||||||||
| TOTAL ASSETS | $ | 339,817 | $ | 377,039 | $ | 334,976 | ||||||
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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| Deposits: | ||||||||||||
| Demand deposits | $ | 72,906 | $ | 103,778 | $ | 87,266 | ||||||
| Savings and NOW deposits | 159,887 | 164,318 | 145,627 | |||||||||
| Time deposits | 74,757 | 76,681 | 76,256 | |||||||||
| Total deposits | 307,550 | 344,777 | 309,149 | |||||||||
| Securities sold under agreements to repurchase | 2,673 | 3,548 | 2,581 | |||||||||
| Due to broker | - | - | - | |||||||||
| Other liabilities | 1,186 | 1,271 | 897 | |||||||||
| Total liabilities | 311,409 | 349,596 | 312,627 | |||||||||
| Stockholders' equity: | ||||||||||||
| Preferred Stock - Series A | - | - | 3,874 | |||||||||
| Preferred Stock - Series B | - | - | 216 | |||||||||
| Preferred Stock - Series C | 8,958 | 8,952 | - | |||||||||
|
Common Stock, no par value; authorized 2,000,000 shares; |
9,631 | 9,620 | 9,381 | |||||||||
| Treasury Stock, 414 shares | (7 | ) | (7 | ) | - | |||||||
| Unearned compensation restricted stock awards | (163 | ) | (199 | ) | - | |||||||
| Retained earnings | 8,991 | 8,360 | 8,203 | |||||||||
| Accumulated other comprehensive income | 998 | 717 | 675 | |||||||||
| Total stockholders' equity | 28,408 | 27,443 | 22,349 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 339,817 | $ | 377,039 | $ | 334,976 | ||||||
| SBT Bancorp, Inc | ||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands, except for per share amounts) | ||||||||||||
| For the quarter ended | For the six months ended | |||||||||||
| 6/30/2012 | 6/30/2011 | 6/30/2012 | 6/30/2011 | |||||||||
| Interest and dividend income: | ||||||||||||
| Interest and fees on loans | $ | 2,433 | $ | 2,480 | $ | 4,935 | $ | 4,955 | ||||
| Investment securities | 469 | 437 | 883 | 835 | ||||||||
| Federal funds sold and overnight deposits | 20 | 22 | 58 | 39 | ||||||||
| Total interest and dividend income | 2,922 | 2,939 | 5,876 | 5,829 | ||||||||
| Interest expense: | ||||||||||||
| Deposits | 253 | 379 | 521 | 797 | ||||||||
| Repurchase agreements | 1 | 6 | 2 | 14 | ||||||||
| Total interest expense | 254 | 385 | 523 | 811 | ||||||||
| Net interest and dividend income | 2,668 | 2,554 | 5,353 | 5,018 | ||||||||
| Provision for loan losses | 60 | 165 | 150 | 165 | ||||||||
| Net interest and dividend income after | ||||||||||||
| provision for loan losses | 2,608 | 2,389 | 5,203 | 4,853 | ||||||||
| Noninterest income: | ||||||||||||
| Service charges on deposit accounts | 118 | 134 | 240 | 247 | ||||||||
| Gain on sales of available-for-sale securities | 24 | 162 | 47 | 269 | ||||||||
| Other service charges and fees | 169 | 145 | 323 | 276 | ||||||||
|
Increase in cash surrender value of life insurance policies |
55 | 39 | 95 | 79 | ||||||||
| Gain on loans sold | 533 | 54 | 882 | 101 | ||||||||
| Investment services fees and commissions | 48 | 37 | 71 | 103 | ||||||||
| Other income | 1 | 4 | 1 | 4 | ||||||||
| Total noninterest income | 948 | 575 | 1,659 | 1,079 | ||||||||
| Noninterest expense: | ||||||||||||
| Salaries and employee benefits | 1,603 | 1,402 | 2,990 | 2,815 | ||||||||
| Premises and equipment | 324 | 330 | 663 | 692 | ||||||||
| Advertising and promotions | 183 | 117 | 332 | 217 | ||||||||
| Forms and supplies | 53 | 41 | 96 | 93 | ||||||||
| Professional fees | 174 | 226 | 319 | 384 | ||||||||
| Directors' fees | 56 | 39 | 113 | 78 | ||||||||
| Correspondent charges | 85 | 80 | 184 | 156 | ||||||||
| Postage | 20 | 20 | 47 | 41 | ||||||||
| FDIC Assessment | 46 | 112 | 69 | 241 | ||||||||
| Data Processing Fees | 124 | 112 | 238 | 221 | ||||||||
| Other expenses | 278 | 262 | 541 | 455 | ||||||||
| Total noninterest expense | 2,946 | 2,741 | 5,592 | 5,393 | ||||||||
| Income before income taxes | 610 | 223 | 1,270 | 539 | ||||||||
| Income tax provision | 157 | 25 | 336 | 254 | ||||||||
| Net income | $ | 453 | $ | 198 | $ | 934 | $ | 285 | ||||
| Net income available to common shareholders | $ | 423 | $ | 133 | $ | 839 | $ | 156 | ||||
| Average shares outstanding, basic | 854,078 | 864,976 | 859,657 | 864,976 | ||||||||
| Earnings per common share, basic | $ | 0.49 | $ | 0.15 | $ | 0.98 | $ | 0.18 | ||||
| Average shares outstanding, assuming dilution | 865,284 | 865,264 | 871,113 | 865,282 | ||||||||
| Earnings per common share, assuming dilution | $ | 0.49 | $ | 0.15 | $ | 0.96 | $ | 0.18 | ||||
CONTACT:
The Simsbury Bank & Trust Company
Anthony F.
Bisceglio, EVP & CFO, 860-408-5493
860-408-4679 (fax)
abisceglio@simsburybank.com