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SBT Bancorp, Inc. Reports Record Third Quarter 2012 Results

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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 Boston 32,338 65,292 64,699
Interest-bearing deposits with the Federal Home Loan Bank 2 1 2
Federal funds sold 2,476 2,024 2,036
Money market mutual funds   365     5,346     5,346  
Cash and cash equivalents 41,988 91,880 79,739
 
Interest-bearing time deposits with other bank 3,752 4,728 4,684
Investments in available-for-sale securities (at fair value) 86,274 56,859 49,443
Federal Home Loan Bank stock, at cost 589 660 660
 
Loans outstanding 227,224 216,552 210,592
Less allowance for loan losses   2,482     2,469     2,429  
Loans, net   224,742     214,083     208,163  
 
Premises and equipment 841 679 505
Other real estate owned 323 - -
Accrued interest receivable 961 964 922
Bank owned life insurance 6,325 4,173 4,133
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 deposits 188,259 164,318 181,888
Time deposits   74,969     76,681     75,761  
Total deposits 333,328 344,777 318,918
 
Securities sold under agreements to repurchase 4,615 3,548 3,908
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 C 8,961 8,952 8,947

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

9,639 9,620 9,616
Treasury Stock, 414 shares (7 ) (7 ) -
Unearned compensation restricted stock awards (141 ) (199 ) (225 )
Retained earnings 9,364 8,360 8,156
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 ended For 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 securities 464 416 1,346 1,250
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:
Deposits 263 383 784 1,180
Repurchase agreements   1   7   3   21
Total interest expense   264   390   787   1,201
 
Net interest and dividend income 2,575 2,576 7,928 7,554
 
Provision for loan losses   60   165   210   330
 

Net interest and dividend income after provision for loan losses

2,515 2,411 7,718 7,224
 
Noninterest income:
Service charges on deposit accounts 121 129 361 377
Gain on sales of available-for-sale securities 30 116 78 384
Other service charges and fees 235 162 558 424

Increase in cash surrender value of life insurance policies

57 40 152 120
Gain on loans sold 609 103 1,491 215
Investment services fees and commissions 49 36 120 139
Other income   1   2   2   49
Total noninterest income   1,102   588   2,762   1,708
 
Noninterest expense:
Salaries and employee benefits 1,658 1,397 4,648 4,212
Premises and equipment 339 330 1,002 1,023
Advertising and promotions 174 139 506 357
Forms and supplies 42 43 138 135
Professional fees 119 233 438 617
Directors' fees 57 53 170 131
Correspondent charges 83 73 267 229
Postage 20 24 68 65
FDIC Assessment 46 56 114 298
Data Processing Fees 131 107 369 328
Other expenses   295   232   837   686
Total noninterest expense   2,964   2,687   8,557   8,081
 
Income before income taxes 653 312 1,923 851
Income tax provision   147   54   483   308
 
Net income $ 506 $ 258 $ 1,440 $ 543
 
Net income available to common shareholders $ 481 $ 83 $ 1,320 $ 239
 
Average shares outstanding, basic 867,640 864,976 866,135 864,976
Earnings per common share, basic $ 0.55 $ 0.10 $ 1.52 $ 0.28
 
Average shares outstanding, assuming dilution 875,108 870,803 873,853 867,149
Earnings per common share, assuming dilution $ 0.55 $ 0.10 $ 1.51 $ 0.28

The Simsbury Bank & Trust Company
Anthony F. Bisceglio, 860-408-5493
EVP & CFO
860-408-4679 (fax)
abisceglio@simsburybank.com

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