PRESS RELEASE
JANUARY 26, 2005
NEW HAVEN, CONNECTICUT 06510
CONTACT: MICHAEL M. CIABURRI
PRESIDENT AND COO
(203) 782-1100
SOUTHERN CONNECTICUT BANCORP, INC. ANNOUNCES YEAR END RESULTS
SOUTHERN CONNECTICUT BANCORP, INC. (AMEX: SSE), THE PARENT COMPANY OF THE BANK
OF SOUTHERN CONNECTICUT AND THE BANK OF SOUTHEASTERN CONNECTICUT (IN
ORGANIZATION), REPORTS SUBSTANTIAL ASSET GROWTH FOR THE TWELVE MONTH PERIOD
ENDING DECEMBER 31, 2004 IN COMPARISON TO DECEMBER 31, 2003. TOTAL ASSETS OF
BANCORP WERE $82,445,725 AT DECEMBER 31, 2004 IN COMPARISON TO $56,386,041 AT
DECEMBER 31, 2003, REPRESENTING A 46% INCREASE. TOTAL EQUITY CAPITAL OF BANCORP
INCREASED TO $20,697,727 AT DECEMBER 31, 2004 FROM $7,314,449 AT DECEMBER 31,
2003 REPRESENTING A 183% INCREASE. BANCORP REPORTS LOSSES OF $101,226 AND
$98,284 FOR THE THREE AND TWELVE MONTH PERIODS ENDING DECEMBER 31, 2004 IN
COMPARISON TO A PROFIT OF $25,948 AND A LOSS OF $597,927 FOR THE THREE AND
TWELVE MONTH PERIODS ENDING DECEMBER 31, 2003. THREE AND TWELVE MONTH BASIC
INCOME (LOSS) PER SHARE AT DECEMBER 31, 2004 WERE $(0.04) AND $(0.04)
RESPECTIVELY IN COMPARISON TO A PROFIT OF $0.02 AND A LOSS OF $(0.56) IN THE
PREVIOUS YEAR.
FOR THE FISCAL YEAR END DECEMBER 31, 2004, THE BANK OF SOUTHERN CONNECTICUT
RECORDED A PROFIT OF $191,342 IN COMPARISON TO A LOSS OF $485,127 FOR DECEMBER
31, 2003, THUS DEMONSTRATING SUBSTANTIAL IMPROVEMENT AND PROGRESS IN THE BANK'S
OPERATIONS. THE BANK REPORTS A LOSS OF $10,056 FOR THE FOURTH QUARTER OF 2004 IN
COMPARISON TO A PROFIT OF $110,641 FOR THE FOURTH QUARTER OF 2003. TOTAL ASSETS
OF THE BANK OF SOUTHERN CONNECTICUT INCREASED BY 34% TO $75,234,783 AT DECEMBER
31, 2004 FROM $56,327,062 AT DECEMBER 31, 2003. TOTAL LOANS INCREASED BY 22% TO
$49,862,694 AT DECEMBER 31, 2004 FROM $40,818,719 AT DECEMBER 31, 2003. TOTAL
DEPOSITS INCREASED BY 24% TO $58,761,428 AT DECEMBER 31, 2004 FROM $47,273,875
AT DECEMBER 31, 2003. IN ADDITION, THE BANK INCREASED ITS ALLOWANCE FOR LOAN AND
LEASE LOSS TO 1.48% OF TOTAL LOANS AT DECEMBER 31, 2004 FROM 1.03% OF TOTAL
LOANS AT DECEMBER 31, 2003.
THE BANK'S LOAN LOSS RESERVE OF 1.48% OF TOTAL LOANS IS ABOVE ITS PEER GROUP
AVERAGE IN THE STATE OF CONNECTICUT OF 1.22% OF TOTAL LOANS.
THE BANK OF SOUTHERN CONNECTICUT OPENED FOR BUSINESS IN OCTOBER 2001 AND
CURRENTLY HAS THREE BANKING OFFICES.
"WHILE WE EXPERIENCED A MODEST LOSS OF $98,284 FOR THE YEAR DUE PRIMARILY TO
INCREASED EXPENSES ASSOCIATED WITH ESTABLISHING THE OPENING OF THE BANK OF
SOUTHEASTERN CONNECTICUT IN NEW LONDON, CONNECTICUT, WE ARE PLEASED WITH THE
CONTINUED GROWTH AND PROGRESS OF OUR COMPANY," STATED MICHAEL M. CIABURRI,
PRESIDENT AND CHIEF OPERATING OFFICER.
THE BANK OF SOUTHEASTERN CONNECTICUT (IN ORGANIZATION) IS EXPECTED TO COMMENCE
OPERATION DURING THE SECOND HALF OF 2005, SUBJECT TO RECEIPT OF FINAL APPROVALS
FROM APPLICABLE REGULATORY AUTHORITIES, AND WILL BE HEADQUARTERED IN THE CITY OF
NEW LONDON, CONNECTICUT. THE DELAY IN THE OPENING IS A DIRECT RESULT OF
CONSTRUCTION PROBLEMS THAT HAVE OCCURRED AT THE BANK'S HEADQUARTERS LOCATED AT
15 MASONIC STREET.
CERTAIN STATEMENTS CONTAINED IN THIS RELEASE AND IN OTHER WRITTEN MATERIALS AND
STATEMENTS WE MAY ISSUE, INCLUDING WITHOUT LIMITATION STATEMENTS CONTAINING THE
WORD "BELIEVES," "ANTICIPATES," "INTENDS," "EXPECTS," "ESTIMATES," "COULD,"
"WOULD," "WILL," OR WORDS OF SIMILAR IMPORT, CONSTITUTE FORWARD -LOOKING
STATEMENTS WITHIN THE MEANING OF THE FEDERAL SECURITIES LAWS.
SUCH FORWARD-LOOKING STATEMENTS INVOLVE RISKS, UNCERTAINTIES AND OTHER FACTORS
THAT MAY CAUSE OUR ACTUAL FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE
MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH
FORWARD-LOOKING STATEMENTS. SUCH FACTORS INCLUDE, AMONG OTHERS, A LIMITED
OPERATING HISTORY AND VOLATILITY OF EARNINGS, OUR DEPENDENCE ON OUR EXECUTIVE
MANAGEMENT AND BOARD OF DIRECTORS, OUR BUSINESS CONCENTRATION IN SMALL TO
MEDIUM-SIZED BUSINESSES IN THE NEW HAVEN AND NEW LONDON, CONNECTICUT AREAS, AS
WELL AS CHANGES IN OUR BUSINESS, COMPETITIVE MARKET AND REGULATORY CONDITIONS
AND STRATEGIES. ADDITIONAL INFORMATION CONCERNING FACTORS THAT COULD IMPACT
FORWARD-LOOKING STATEMENTS CAN BE FOUND IN THE COMPANY'S PERIODIC PUBLIC FILINGS
WITH THE SECURITIES AND EXCHANGE COMMISSION AND IN THE SECTION CAPTIONED "RISK
FACTORS" IN OUR FINAL PROSPECTUS, FILED ON JUNE 17, 2004 PURSUANT TO THE RULE
424(B) (1) UNDER THE SECURITIES ACT OF 1933 AS AMENDED. GIVEN THESE
UNCERTAINTIES, READERS ARE CAUTIONED NOT TO PLACE ANY UNDUE RELIANCE ON SUCH
FORWARD-LOOKING STATEMENTS. WE DISCLAIM ANY INTENT OR OBLIGATION TO UPDATE THESE
FORWARD LOOKING STATEMENTS TO REFLECT FACTS, ASSUMPTIONS, CIRCUMSTANCES OR
EVENTS THAT OCCUR AFTER THE DATE ON WHICH SUCH FORWARD-LOOKING STATEMENTS WERE
MADE.