HARTFORD, Conn., Jan. 24 /PRNewswire-FirstCall/ -- The Connecticut
Bank and Trust Company, (OTC:CTBC) (BULLETIN BOARD: CTBC) ,
reported the second consecutive improvement in quarterly results as
net operating results improved by $239,000. The net loss for the
quarter ended December 31, 2005 was ($622,000) or ($0.17) per share
compared to ($861,000) or ($0.44) per share in the quarter ended
September 30, 2005. A noteworthy accomplishment during the quarter
included the opening of CBT's fourth branch -- in the important
tri- town market of Vernon, Manchester and South Windsor. At
December 31, 2005, loans outstanding had reached $57 million, an
increase of $36 million for the year. For the year ended December
31, 2005 the net loss was ($3,568,000) or ($1.53) per share
compared to ($3,431,000) or ($2.29) per share for year ended
December 31, 2004. The loss per share for the quarter and year
ended December 31, 2005 reflected the issuance of 1,650,000 shares
of common stock in September of 2005. Chairman and CEO David A.
Lentini remarked, "We are all very excited to have our Vernon
Branch up and running. Our people are working hard to bring our
brand of personal service and quality products to the central
Connecticut marketplace." He went on to note, "I am also pleased
with our results. The improvements over the past several quarters
convince me that we are making the right choices concerning growth
and profitability." Balance Sheet Performance. At December 31,
2005, total assets were $96.9 million compared to $78.3 million at
December 31, 2004. During the year ended December 31, 2005, loans
outstanding increased $35.9 million, or 169.3%, to $57.1 million.
Total deposits were $70.7 million at December 31, 2005, an increase
of $7.2 million or 11.5% from $63.5 million at December 31, 2004.
Stockholders' Equity at December 31, 2005 was $25.0 million
compared to $14.1 million at December 31, 2004. This change results
primarily from the increased deficit and the completion in
September 2005 of the secondary offering of common stock in which
CBT sold 1,650,000 shares for $14.6 million. Asset Quality. The
allowance for loan losses at December 31, 2005 was $876,000
compared to $239,000 at December 31, 2004 and represented 1.53% and
1.13% of loans outstanding for the respective dates. There were no
loans past due 30 days or more at December 31, 2005, other than one
consumer loan ($25,000) on nonaccrual. Net Interest Income. During
the quarter ended December 31, 2005, net interest income amounted
to $837,000 compared to $625,000 in the quarter ended September 30,
2005. This increase reflected both the continued growth in loans
outstanding and the modest but continuing rise in interest rates.
The net interest margin for the quarter was 3.69% compared to 2.97%
in the quarter ended September 30, 2005. For the year ended
December 31, 2005, net interest income amounted to $2,480,000
compared to $640,000 for the year ended December 31, 2004. This
marked increase reflects, in part, the fact that CBT began
operation in March 2004. The net interest margin for the year ended
December 31, 2005 was 3.08% compared to 1.94% for the previous
year. Noninterest Expenses. Total expenses increased $88,000 or
7.1% in the quarter ended December 31, 2005, to $1,335,000 from
$1,247,000 in the quarter ended September 30, 2005. The largest
change occurred in salaries and benefits which increased $99,000
and resulted principally from staff additions for the new Vernon
Branch. Occupancy expense increased $37,000 also chiefly related to
the new branch. All other expenses as a group decreased $48,000
during the quarter. For the 12 months ended December 31, 2005,
total expenses increased $1,587,000 compared to the same period in
2004. This increase included the effect of a full period of
operation in 2005. Expense increases included salaries and
benefits, $1,115,000; marketing, $448,000; occupancy and equipment,
$236,000; data processing, $93,000; and professional services,
$81,000. The $360,000 contribution to the CBT Charitable Trust in
2004 did not recur and all other expenses as a group decreased
$26,000. Selected Performance Data Three months ended Dollar values
in thousands Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, except
per share 2004 2004 2005 2005 2005 2005 Total assets (EOP) $63,008
$78,288 $77,357 $86,132 $99,589 $96,875 Net operating loss ($844)
($984) ($964) ($1,121) ($861) ($622) Net interest margin 2.53%
1.58% 2.62% 2.95% 2.97% 3.69% Ratio of total stockholders' equity
to total assets (EOP) 24.14% 18.02% 16.70% 14.12% 25.84% 25.85%
Average shares outstanding (in thousands) 1,850 1,887 1,889 1,905
1,968 3,567 Loss per share ($0.46) ($0.52) ($0.51) ($0.59) ($0.44)
($0.17) Book value per share (EOP) $8.07 $7.49 $6.84 $6.35 $7.21
$7.02 Allowance for loan losses/total loans (EOP) 1.08% 1.13% 1.17%
1.33% 1.45% 1.53% Selected Performance Data Year ended Dollar
values in thousands Dec 31, Dec 31, except per share 2004 2005
Total assets (EOP) $78,288 $96,875 Net operating loss ($3,431)
($3,568) Net interest margin 1.94% 3.08% Ratio of total
stockholders' equity to total assets (EOP) 18.02% 25.85% Average
shares outstanding (in thousands) 1,501 2,336 Loss per share
($2.29) ($1.53) Book value per share (EOP) $7.47 $7.02 Allowance
for loan losses/total loans (EOP) 1.13% 1.53% Statements contained
in this release, which are not historical facts, may be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
subject to risks and uncertainties which could cause actual results
to differ materially from those currently anticipated, due to a
number of factors which include without limitation the effects of
future economic conditions, governmental fiscal and monetary
policies, legislative and regulatory changes, changes in the
interest rates, the effects of competition, and other factors that
could cause actual results to differ materially from those provided
in any such forward-looking statements. See financial statements
accompanying this release for additional data. THE CONNECTICUT BANK
AND TRUST COMPANY BALANCE SHEETS December 31, 2005 and 2004
(Dollars in Thousands) ASSETS 2005 2004 Cash and due from banks
$1,406 $1,482 Federal funds sold 11,027 14,731 Cash and cash
equivalents 12,433 16,213 Securities available for sale, at fair
value 23,908 37,927 Federal Reserve Bank stock, at cost 766 529
Federal Home Loan Bank stock, at cost 125 - Loans 57,140 21,239
Allowance for loan losses (876) (239) Loans, net 56,264 21,000
Premises and equipment, net 2,079 1,928 Accrued interest receivable
390 322 Other assets 910 369 $96,875 $78,288 LIABILITIES AND
STOCKHOLDERS' EQUITY Deposits $70,740 $63,451 Repurchase agreements
442 302 Other liabilities 648 425 Total liabilities 71,830 64,178
Stockholders' equity; Common stock, $1.00 par value; 10,000,000
shares authorized; shares issued and outstanding: 3,567,450 at
December 31, 2005 and 1,888,550 at December 31, 2004 3,567 1,889
Common stock warrants 853 853 Additional paid-in capital 29,536
16,178 Restricted stock unearned compensation (618) (407) Retained
deficit (7,756) (4,188) Accumulated other comprehensive loss (537)
(215) Total stockholders' equity 25,045 14,110 $96,875 $78,288 THE
CONNECTICUT BANK AND TRUST COMPANY Statements of Operations Three
Months Ended Year Ended Dec 31, Sep 30, Dec 31, December 31, 2005
2005 2004 2005 2004 (Dollars in thousands except (Unaudited)
(Unaudited) share data) Interest and dividend income: Interest and
fees on loans $896 $690 $190 $2,514 $340 Debt securities 231 290
278 1,197 490 Dividends 10 8 25 34 25 Federal funds sold 108 104 97
322 177 Total interest and dividend income 1,245 1,092 590 4,067
1,032 Interest expense: Deposits 405 465 316 1,581 382 Borrowed
funds 3 2 7 6 10 Total interest expense 408 467 323 1,587 392 Net
interest income 837 625 267 2,480 640 Provision for loan losses 159
211 132 637 239 Net interest income, after provision for loan
losses 678 414 135 1,843 401 Non-interest income (charges): Service
charges and fees 21 15 22 66 28 Net gains on sales of loans 14 2 2
16 - Net losses from sales of available-for-sale securities - (45)
(2) (48) (2) Total non-interest income 35 (28) 22 34 26
Non-interest expenses: Salaries and benefits 793 694 553 2,782
1,667 Occupancy and equipment 251 214 271 899 663 Data processing
61 49 24 183 90 Marketing 176 118 102 797 349 Professional services
21 57 75 395 314 Other general and administrative 33 115 116 389
775 Total non-interest expenses 1,335 1,247 1,141 5,445 3,858 Net
loss $(622) $(861) $(984) $(3,568) $(3,431) Net loss per share:
Basic $(0.17) $(0.44) $0.52 $(1.53) $(2.29) Diluted $(0.17) $(0.44)
$0.52 $(1.53) $(2.29) First Call Analyst: FCMN Contact: DATASOURCE:
The Connecticut Bank and Trust Company CONTACT: David A. Lentini of
The Connecticut Bank and Trust Company, +1-860-748-4250,
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