The Simsbury Bank & Trust
Simsbury-based SBT Bancorp, the holding company for The Simsbury Bank & Trust, recently announced net income of $283,000 in the first quarter compared to $425,000 during the same period a year ago. Net income per diluted share was 33 cents compared to 50 cents a year ago. Total assets as of March 31, 2006, totaled $213 million, an increase of $15 million, or 7.5 percent, over the prior year.
Officials said net income for the quarter was affected by the first full quarter of operations for the bank’s newest full-service branch in Canton, preparing for the midyear opening of the bank’s fifth full-service branch in Bloomfield, the formation of a holding company that was completed in March of this year and the effects of a challenging interest-rate environment on the bank’s net-interest income growth.
On March 31, 2006, loans outstanding were $149 million, an increase of $7 million, or 5 percent, over a year ago. Total deposits were $195 million, an increase of $14 million, or 8 percent, over a year ago.
Total revenues, consisting of net-interest income plus non-interest income, were $2.13 million in the first quarter compared to $2.08 million a year ago. Net-interest income increased by $23,000, or 1 percent. Income from fees, services and other sources (non-interest income) increased by $25,000, or 11 percent. The bank’s total revenues increased despite operating in a difficult interest-rate environment, with the spread between long-term and short-term interest rates remaining very narrow.
Total non-interest expenses for the first quarter increased by $279,000 compared to a year earlier, primarily due to expenses associated with the new Canton and Bloomfield branch offices and the formation of SBT Bancorp.
“Our focus over the past year has been on positioning the bank for growth,” said Martin J. Geitz, The Simsbury Bank’s president and chief executive officer. “We successfully opened our fourth branch office in Canton late in 2005 and we are on schedule to open our fifth branch office in Bloomfield at midyear. Anticipating the need for additional capital to support the growth of these new branches, we completed the formation of a holding company during the first quarter. While we have no immediate plans to raise additional capital, the holding company structure gives us the flexibility to issue trust-preferred securities to meet our future capital requirements.”
InsurBanc Refocuses Efforts
Farmington-based InsurBanc, the only federal savings bank exclusively serving insurance agents, brokers and their clients, is focusing its efforts to also offer competitive personal banking products for one-stop banking.
“InsurBanc was organized in 2001 specifically to serve independent insurance agents, brokers and their clients,” said David W. Tralka, InsurBanc president and chief executive officer. “Now that more and more agents have placed their trust in us and realize our commitment to helping them succeed and plan for their business future, they are also looking to us for competitive personal products.”
“We are recognizing our customers’ interest in personal products by offering a special, low-rate 15-year home equity loan and a highly competitive mortgage program,” said Robert J. Pettinicchi, InsurBanc executive vice president and chief lending officer.
InsurBanc accepts mortgage applications over the Internet and offers a full range of options that include mortgages with no down payment, mortgages for individuals with less-than-perfect credit and flexible plan mortgages. The bank’s Web site provides customers with a step-by step, customized rate quote.
“We don’t just list all of our rates and have customers try to figure out what is best for them,” said Pettinicchi. “Our online rate-quote page asks a series of questions and then displays the best product and the best rate for an individual’s needs – all it takes is a few clicks and a few minutes.”
