Savings Institute Bank & Trust Co., Willimantic
Willimantic-based SI Financial Group, holding company of Savings Institute Bank & Trust Co., reported net income of $458,000, for the quarter ended Dec. 31, 2007, versus net income of $669,000 for the same period the prior year. Net income for the year was $1.4 million, compared to $2.8 million for the prior year. The provision for loan losses decreased $13,000 to $322,000 for the fourth quarter of 2007 compared to the same period in the prior year, and increased $181,000 to $1.1 million for the year, versus $881,000 the prior year. As of Dec. 31, 2007, nonperforming loans totaled $7.6 million, compared to $1.4 million the year before. While the company has no direct exposure to subprime mortgages in its loan portfolio, declining economic conditions have negatively impacted the residential and commercial construction markets and contributed to the decrease in credit quality for commercial loans. As a result, the company has increased its provision for loan losses on this portion of the loan portfolio during the second half of 2007 to reflect the increased risk of loss associated with this type of lending. Total assets increased $33.2 million, or 4.4 percent, to $790.2 million at Dec. 31, 2007, from $757 million the prior year. During the fourth quarter of 2007, the company announced the purchase of two branch locations in Colchester and New London. The Colchester branch acquisition was completed two months ago, and the New London acquisition is expected to be completed soon. Separately, the company’s board of directors approved the repurchase of up to 5 percent of the company’s outstanding common stock, or approximately 596,000 shares. When combined with shares that remain to be repurchased under the existing stock repurchase program, the company may repurchase up to 647,000 shares of its common stock. SI Financial Group Inc. is the holding company for Savings Institute Bank & Trust Co., which has 21 branches in eastern Connecticut.
GE Provides Financing
GE Commercial Finance’s Media, Communications & Entertainment business, based in Norwalk, has provided $55 million in financing to Reading International, a Commerce, Calif.-based cinema exhibition and real estate company. The financing will support Reading International’s acquisition of a number of cinemas in California and Hawaii operated by Pacific Theatres Exhibition Corp. Reading International primarily develops, owns and operates multiplex cinemas in the United States, Australia and New Zealand. Reading also is involved in the development, ownership and operation of retail and commercial real estate in those locations, including entertainment-themed retail centers in Australia and New Zealand and live-theater assets in New York and Chicago.
