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SBT Bancorp, Inc. Reports Third Quarter 2010 Results

^{Published on 2010-10-27 03:22:18 - Market Wire}
 

SIMSBURY, Conn.--([ BUSINESS WIRE ])--SBT Bancorp, Inc., (OTCBB: SBTB), holding company for Simsbury Bank & Trust Company, today announced net income of $314,000 for the third quarter of 2010, compared to $160,000 for the third quarter of 2009, an increase of 96%. Net income available to common shareholders after preferred dividends was $249,000, or $0.29 per diluted share, for the third quarter of 2010, compared to $95,000, or $0.11 per diluted share, for the third quarter of 2009, an increase in diluted earnings per share of 164%.

"SBT Bancorp is pleased to report another quarter of increased earnings"

Key items for the third quarter of 2010 compared to the third quarter of 2009 include:

• Total revenues increased by 13%.
• Core deposits increased by 14%.
• Total loans outstanding increased by 7%.
• Taxable equivalent net interest margin increased by 36 basis points, from 3.39% to 3.75%.
• Total non-accrual loans and loans 30 or more days past due decreased from 2.27% of loans outstanding to 1.28% of loans outstanding.
• Allowance for loan losses ended the quarter at 1.10% of total loans outstanding.
• Capital ratios remained well above regulatory standards for a awell capitalizeda bank.

aSBT Bancorp is pleased to report another quarter of increased earnings,a said SBT Bancorp President and CEO, Martin J. Geitz. aOur steady growth in loans, deposits, and revenues has now produced increased earnings in each of the past four quarters. Customer focus remains the foundation of our success. We will continue to build shareholder value by developing profitable banking relationships, diversifying our sources of revenue, and serving our customersa™ full range of financial services needs.a

For the nine months ended September 30, 2010, net income amounted to $830,000, or $0.74 per diluted share. This compares to net income of $527,000, or $0.46 per diluted share, for the nine months ended September 30, 2009, an increase in diluted per share earnings of 61%. Total assets were $297 million on September 30, 2010 compared to $287 million on September 30, 2009, an increase of $10 million or 3%.

Total revenues, consisting of net interest and dividend income plus noninterest income, were $3,116,000 in the third quarter compared to $2,752,000 during the same period a year ago, an increase of 13%. Net interest and dividend income increased by $308,000, or 13%. This increase was driven by a 3% growth in the balance sheet and a 36 basis point increase in the Companya™s taxable equivalent net interest margin. For the nine months ended September 30, 2010 total revenues were $8,954,000 compared to $7,608,000 for the nine months ended September 30, 2009, an increase of 18%.

The Companya™s taxable-equivalent net interest margin (taxable-equivalent net interest and dividend income divided by average earning assets) was 3.75% for the third quarter of 2010, compared to 3.39% for the third quarter of 2009. The primary cause of this increase was a much lower cost of funds. Core deposits grew rapidly during this period, replacing higher-cost time deposits.

Total non-interest expenses for the third quarter were $2,515,000, an increase of $148,000 or 6% over the third quarter of 2009. Salaries and employee benefit expenses and professional fees increased during the third quarter of 2010 compared to the third quarter of 2009. Advertising and promotion expenses as well as data processing fees declined in the third quarter of 2010 compared to the third quarter of 2009. For the nine months ended September 30, 2010 total non-interest expenses were $7,268,000 compared to $6,581,000 for the nine months ended September 30, 2009, an increase of 10%.

On September 30, 2010, loans outstanding were $209 million, an increase of $14 million, or 7%, over a year ago. With a loan loss provision of $180,000 during the quarter, the Companya™s allowance for loan losses at September 30, 2010 was 1.10% of total loans. The profile of the Companya™s loan portfolio remains relatively low-risk. The Company had non-accrual loans totaling $2.5 million equal to 1.19% of total loans on September 30, 2010 compared to non-accrual loans of 1.27% of total loans a year ago. Loans 30 days or more delinquent, excluding non-accrual loans, totaled $184,000, or 0.09% of total loans on September 30, 2010 compared to 1.00% a year ago. Total non-accrual loans and loans 30 or more days past due decreased from 2.27% of loans outstanding on September 30, 2009 to 1.28% of loans outstanding on September 30, 2010.

Total deposits on September 30, 2010 were $270 million, an increase of $7 million or 3% over a year ago. Core deposits (Demand, Savings and NOW accounts) increased by $23 million or 14% while Time Deposits decreased by $17 million. At quarter-end, 18% of total deposits were in non-interest bearing demand accounts, 54% were in low-cost savings and NOW accounts, and 28% were in time deposits.

Capital levels for the Simsbury Bank & Trust Company remain well in excess of those required to meet the regulatory awell-capitalizeda designation.

SBT Bancorp Inc.a™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 $297 million in assets. The Bank serves customers through full-service offices in Avon, Bloomfield, Granby and Simsbury, Connecticut; a loan production office and ATM in Canton, Connecticut; SBT 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 Banka™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., Simsbury Bank & Trust Company, or their directors or officers, are aforward-lookinga 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.