CBT Reports Results for the Fourth Quarter

  
    
  
  
    
      The Connecticut Bank and Trust Company, (Nasdaq: CTBC), reported a net 
      loss for the quarter ended December 31, 2006 of $610,000 or $0.17 per 
      share compared to a net loss of $844,000 or $0.24 per share in the 
      immediately preceding quarter. The results also reflected modest 
      improvement compared to $622,000 or $0.17 per share reported for the 
      quarter ended December 31, 2005. During the quarter, CBT passed the $100 
      million mark in loans outstanding. CBT has attained this threshold 
      faster than that of any de novo institution in the history of the State 
      of Connecticut.
    
    
      For the year ended December 31, 2006, the net loss was $3,238,000 or 
      $0.91 per share compared to a net loss of $3,568,000 or $1.53 per share 
      for the year ended December 31, 2005. The per-share results reflect the 
      issuance of 1.65 million shares of CBT common stock issued in September 
      2005. During 2006, total assets increased $39.5 million to end the year 
      at $136.4 million.
    
    
      The results for both the quarter and all of 2006 reflect growth in total 
      assets and the increased costs of operations. During 2006, the Bank 
      continued to invest in its expanding network of banking centers, opening 
      facilities in Vernon and Newington and developing the home-office team 
      to support them. Chairman and CEO David A. Lentini noted, “In 
      2007, we intend to complete this phase of our development with offices 
      in Windsor and Rocky Hill, subject to all necessary approvals. With the 
      start-up costs of our seven banking centers behind us, we will then be 
      positioned to optimize marketing dollars, technology and the best team 
      of bankers in greater Hartford to attain profitability.”
    
    
      Results of Operations. 
      The results for the fourth quarter of 2006 improved $12,000 compared to 
      the fourth quarter of 2005. Interest income improved $920,000 for the 
      quarter ending December 31, 2006 to $2,165,000 compared to $1,245,000 
      for the same period in 2005. Interest expense paid on deposits and 
      borrowed funds increased to $1,007,000 for the period ending December 
      31, 2006 from $408,000 for the comparable period in 2005.
    
    
      Net interest income rose $321,000, or 38%, to $1,158,000 for the three 
      month period ending December 31, 2006 compared to $837,000 for the 
      period ending December 31, 2005. For the quarter ending December 31, 
      2006 the net interest margin was 3.74%, a modest improvement from 3.69% 
      for the quarter ending December 31, 2005
    
    
      Chairman Lentini remarked, “As our financial 
      statements illustrate, we have been emphasizing loan growth, and in 
      particular our loan yields. Interest income continues to rise in 
      relation to loans outstanding; however, developing our core deposit base 
      by attracting business customers will alleviate the effects of this 
      narrow interest rate environment.”
    
    
      Non-interest expenses totaled $1,762,000 for the quarter ended December 
      31, 2006 compared to $1,335,000 for the quarter ending December 31, 
      2005. The increase in non-interest expenses is largely attributable to 
      the opening of the two new branches in 2006.
    
    
      Balance Sheet Performance. 
      Total assets were $136.4 million as of December 31, 2006 compared to 
      $96.9 million as of December 31, 2005. Total loans outstanding grew 
      $49.8 million, or 87%, to $106.9 million at year end December 31, 2006 
      compared to $57.1 million for the year ended December 31, 2005.
    
    
      Total deposits of $99.7 million at December 31, 2006 represented a $29.0 
      million increase from the prior year end of $70.7 million. Stockholders’ 
      equity at December 31, 2006 was $22.1 million compared to $25.0 million 
      at December 31, 2005 primarily reflecting the operating losses for the 
      year ended December 31, 2006.
    
    
      Asset Quality. The 
      allowance for loan losses at December 31, 2006 was $1,384,000 compared 
      to $876,000 at December 31, 2005 and represented 1.29% and 1.53% of 
      total loans outstanding for the respective dates. There are two loans 
      past due 30 days or more totaling $151,000 and two loans are classified 
      as nonaccrual totaling $597,000. At the prior year end, there were no 
      loans past due more than 30 days or more other than one consumer loan on 
      nonaccrual for $25,000.
    
    
      
        
          
            Selected Performance Data
          
        
      
      
        
           
        
        
        
        
          Three months ended
        
        
        
        
          Year ended
        
      
      
        
          
            Dollar values in thousands
          
          except per share
        
        
        
        
          Sept. 30,
        
        
        
        
          Dec. 31,
        
        
        
        
          March 31,
        
        
        
        
          June 30,
        
        
        
        
          Sept 30,
        
        
        
        
          Dec. 31,
        
        
        
        
          Dec. 31,
        
        
        
        
          Dec. 31,
        
      
      
        
        
        
          2005 
        
        
        
        
          2005 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2005 
        
        
           
        
        
          2006 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total assets (EOP)
        
        
        
        
          $ 99,589 
        
        
        
        
          $ 96,875 
        
        
        
        
          $ 99,016 
        
        
        
        
          $ 112,462 
        
        
        
        
          $ 123,325 
        
        
        
        
          $ 136,434 
        
        
        
        
          $ 96,875 
        
        
        
        
          $ 136,434 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net operating loss
        
        
        
        
          $ (861)
        
        
        
        
          $ (622)
        
        
        
        
          $ (877)
        
        
        
        
          $ (908)
        
        
        
        
          $ (844)
        
        
        
        
          $ (610)
        
        
        
        
          $ (3,568)
        
        
        
        
          $ (3,238)
        
      
      
        
          Net interest margin
        
        
        
        
          2.97%
        
        
        
        
          3.69%
        
        
        
        
          4.19%
        
        
        
        
          3.86%
        
        
        
        
          3.69%
        
        
        
        
          3.74%
        
        
        
        
          3.08%
        
        
        
        
          3.85%
        
      
      
        
          
            Ratio of total stock-holders' equity to total assets (EOP)
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          25.84%
        
        
        
        
          25.85%
        
        
        
        
          24.25%
        
        
        
        
          20.47%
        
        
        
        
          18.35%
        
        
        
        
          16.19%
        
        
        
        
          25.85%
        
        
        
        
          16.19%
        
      
      
        
          Average shares outstanding
        
        
        
        
          1,968 
        
        
        
        
          3,567 
        
        
        
        
          3,567 
        
        
        
        
          3,567 
        
        
        
        
          3,567 
        
        
        
        
          3,547 
        
        
        
        
          2,336 
        
        
        
        
          3,541 
        
      
      
        
          Loss per share (1)
        
        
        
        
          $ (0.44)
        
        
        
        
          $ (0.17)
        
        
        
        
          $ (0.25)
        
        
        
        
          $ (0.25)
        
        
        
        
          $ (0.24)
        
        
        
        
          $ (0.17)
        
        
        
        
          $ (1.53)
        
        
        
        
          $ (0.91)
        
      
      
        
          Book value per share (EOP)
        
        
        
        
          $ 7.21 
        
        
        
        
          $ 7.02 
        
        
        
        
          $ 6.73 
        
        
        
        
          $ 6.45 
        
        
        
        
          $ 6.34 
        
        
        
        
          $ 6.19 
        
        
        
        
          $ 7.02 
        
        
        
        
          $ 6.19 
        
      
      
        
          Allowance for loan losses to
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          total loans (EOP)
        
        
        
        
          1.45%
        
        
        
        
          1.53%
        
        
        
        
          1.36%
        
        
        
        
          1.37%
        
        
        
        
          1.34%
        
        
        
        
          1.29%
        
        
        
        
          1.53%
        
        
        
        
          1.29%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (1) Issuance of Shares in Sept. 2005.
        
      
    
    
      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
        
      
      
        
          Consolidated Statements of Operations
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Three Months Ended
        
        
        
        
          Year Ended
        
      
      
        
        
        
        
        
          December 31,
        
        
        
        
          December 31,
        
      
      
        
        
        
        
        
          2006 
        
        
        
        
          2005 
        
        
        
        
          2006 
        
        
        
        
          2005 
        
      
      
        
          (Dollars in thousands,except share data)
        
        
          
             
          
        
        
          
            (Unaudited)
          
        
        
          
             
          
        
        
          
            (Unaudited)
          
        
      
      
        
          Interest and dividends:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Loans, including fees
        
        
        
        
          $ 1,859 
        
        
        
        
          $ 896 
        
        
        
        
          $ 6,054 
        
        
        
        
          $ 2,514 
        
      
      
        
          Debt securities
        
        
        
        
          231 
        
        
        
        
          231 
        
        
        
        
          963 
        
        
        
        
          1,197 
        
      
      
        
          Dividends
        
        
        
        
          40 
        
        
        
        
          10 
        
        
        
        
          82 
        
        
        
        
          34 
        
      
      
        
          Federal funds sold
        
        
        
        
          35 
        
        
        
        
          108 
        
        
        
        
          51 
        
        
        
        
          322 
        
      
      
        
          Total interest and dividend income
        
        
        
        
          2,165 
        
        
        
        
          1,245 
        
        
        
        
          7,150 
        
        
        
        
          4,067 
        
      
      
        
          Interest expense:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Deposits
        
        
        
        
          866 
        
        
        
        
          405 
        
        
        
        
          2,469 
        
        
        
        
          1,581 
        
      
      
        
          Borrowed funds
        
        
        
        
          141 
        
        
        
        
          3 
        
        
        
        
          584 
        
        
        
        
          6 
        
      
      
        
          Total interest expense
        
        
        
        
          1,007 
        
        
        
        
          408 
        
        
        
        
          3,053 
        
        
        
        
          1,587 
        
      
      
        
          Net interest income
        
        
        
        
          1,158 
        
        
        
        
          837 
        
        
        
        
          4,097 
        
        
        
        
          2,480 
        
      
      
        
          Provision for loan losses
        
        
        
        
          106 
        
        
        
        
          159 
        
        
        
        
          516 
        
        
        
        
          637 
        
      
      
        
          Net interest income, after provision for loan losses
        
        
        
        
          1,052 
        
        
        
        
          678 
        
        
        
        
          3,581 
        
        
        
        
          1,843 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Service charges and fees
        
        
        
        
          30 
        
        
        
        
          21 
        
        
        
        
          98 
        
        
        
        
          66 
        
      
      
        
          Brokerage fee income
        
        
        
        
          87 
        
        
        
        
          - 
        
        
        
        
          95 
        
        
        
        
          - 
        
      
      
        
          Net gains on sales of loans
        
        
        
        
          - 
        
        
        
        
          14 
        
        
        
        
          - 
        
        
        
        
          16 
        
      
      
        
          Net losses from sales of available-for-sale securities
        
        
        
        
          (17)
        
        
        
        
          - 
        
        
        
        
          (17)
        
        
        
        
          (48)
        
      
      
        
          Total non-interest income
        
        
        
        
          100 
        
        
        
        
          35 
        
        
        
        
          176 
        
        
        
        
          34 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest expenses:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Salaries and benefits
        
        
        
        
          1,043 
        
        
        
        
          793 
        
        
        
        
          3,890 
        
        
        
        
          2,782 
        
      
      
        
          Occupancy and equipment
        
        
        
        
          326 
        
        
        
        
          251 
        
        
        
        
          1,202 
        
        
        
        
          899 
        
      
      
        
          Data processing
        
        
        
        
          53 
        
        
        
        
          61 
        
        
        
        
          174 
        
        
        
        
          183 
        
      
      
        
          Marketing
        
        
        
        
          81 
        
        
        
        
          176 
        
        
        
        
          649 
        
        
        
        
          797 
        
      
      
        
          Professional services
        
        
        
        
          99 
        
        
        
        
          21 
        
        
        
        
          444 
        
        
        
        
          395 
        
      
      
        
          Other general and administrative
        
        
        
        
          160 
        
        
        
        
          33 
        
        
        
        
          636 
        
        
        
        
          389 
        
      
      
        
          Total non-interest expenses
        
        
        
        
          1,762 
        
        
        
        
          1,335 
        
        
        
        
          6,995 
        
        
        
        
          5,445 
        
      
      
        
          Net loss
        
        
        
        
          $ (610)
        
        
        
        
          $ (622)
        
        
        
        
          $ (3,238)
        
        
        
        
          $ (3,568)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net loss per share:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
        
        
          $ (0.17)
        
        
        
        
          $ (0.17)
        
        
        
        
          $ (0.91)
        
        
        
        
          $ (1.53)
        
      
      
        
          Diluted
        
        
        
        
          $ (0.17)
        
        
        
        
          $ (0.17)
        
        
        
        
          $ (0.91)
        
        
        
        
          $ (1.53)
        
      
    
    
      
        
          THE CONNECTICUT BANK AND TRUST COMPANY
        
      
      
        
          Balance Sheets
        
      
      
        
          December 31, 2006 and 2005
        
      
      
        
          (Dollars in Thousands)
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          ASSETS
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
          2006 
        
        
        
        
          2005 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cash and due from banks
        
        
        
        
          $ 4,589 
        
        
        
        
          $ 1,406 
        
      
      
        
          Federal funds sold
        
        
        
        
          475 
        
        
        
        
          11,027 
        
      
      
        
          Cash and cash equivalents
        
        
        
        
          5,064 
        
        
        
        
          12,433 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Securities available for sale, at fair value
        
        
        
        
          20,738 
        
        
        
        
          23,908 
        
      
      
        
          Certificates of deposit
        
        
        
        
          76 
        
        
        
        
          - 
        
      
      
        
          Federal Reserve Bank stock, at cost
        
        
        
        
          693 
        
        
        
        
          766 
        
      
      
        
          Federal Home Loan Bank stock, at cost
        
        
        
        
          728 
        
        
        
        
          125 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loans
        
        
        
        
          106,910 
        
        
        
        
          57,140 
        
      
      
        
          Allowance for loan losses
        
        
        
        
          (1,384)
        
        
        
        
          (876)
        
      
      
        
          Loans, net
        
        
        
        
          105,526 
        
        
        
        
          56,264 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Premises and equipment, net
        
        
        
        
          2,217 
        
        
        
        
          2,079 
        
      
      
        
          Accrued interest receivable
        
        
        
        
          613 
        
        
        
        
          390 
        
      
      
        
          Other assets
        
        
        
        
          779 
        
        
        
        
          910 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          $136,434 
        
        
        
        
          $ 96,875 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          LIABILITIES AND STOCKHOLDERS' EQUITY
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Deposits
        
        
        
        
          $ 99,745 
        
        
        
        
          $ 70,740 
        
      
      
        
          Short-term borrowings
        
        
        
        
          1,453 
        
        
        
        
          442 
        
      
      
        
          Long-term debt
        
        
        
        
          12,450 
        
        
        
        
          - 
        
      
      
        
          Other liabilities
        
        
        
        
          701 
        
        
        
        
          648 
        
      
      
        
          Total liabilities
        
        
        
        
          114,349 
        
        
        
        
          71,830 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders' equity;
        
        
        
        
        
        
        
        
        
      
      
        
          
            Common stock, $1.00 par value; 10,000,000 shares authorized;shares 
            issued and outstanding: 3,567,450 at December 31, 2006and 
            December 31, 2005
          
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          3,567 
        
        
        
        
          3,567 
        
      
      
        
          Common stock warrants
        
        
        
        
          853 
        
        
        
        
          853 
        
      
      
        
          Additional paid-in capital
        
        
        
        
          29,582 
        
        
        
        
          29,536 
        
      
      
        
          Restricted stock unearned compensation
        
        
        
        
          (426)
        
        
        
        
          (618)
        
      
      
        
          Retained deficit
        
        
        
        
          (10,994)
        
        
        
        
          (7,756)
        
      
      
        
          Accumulated other comprehensive loss
        
        
        
        
          (497)
        
        
        
        
          (537)
        
      
      
        
          Total stockholders' equity
        
        
        
        
          22,085 
        
        
        
        
          25,045 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          $136,434 
        
        
        
        
          $ 96,875