Exhibit 99.1
CCBT Financial Companies, Inc. Report 2003 First Quarter Results
SOUTH YARMOUTH, Mass.--(BUSINESS WIRE)--April 17, 2003--CCBT
Financial Companies, Inc. (NASDAQ: CCBT) Chief Executive Officer and
President Stephen B. Lawson announced a first quarter 2003 loss of
$1.5 million compared to earnings of $5.0 million in the same period
last year. This represents a loss of $.17 per diluted share, as
compared to earnings of $.58 per diluted share in the first quarter of
2002.
Mr. Lawson stated, "CCBT's 2003 first quarter loss was the result
of the March 5, 2003 amendment of Massachusetts' law that expressly
disallows the deduction for dividends received from a real estate
investment trust subsidiary (a "REIT"). We accrued a liability in the
first quarter of 2003 of approximately $5.1 million, representing an
estimate of the additional state tax liability of $7.1 million and
including interest of $802,000 (net of any federal and state tax
deductions associated with such taxes and interest), relating to the
deduction for dividends received from a REIT for the 1999 through 2001
fiscal years, and the anticipated deduction for fiscal 2002, thus
reducing earnings by $5.1 million in the first quarter of 2003. As a
result of the enactment of this legislation, we have ceased recording
the tax benefits associated with the dividend received deduction
effective for the 2003 tax year. We believe that this legislation will
be challenged, especially the retroactive provisions, on
constitutional and other grounds. We would support such a challenge
and otherwise intend to defend vigorously our position. Earnings for
the quarter would have been positive if not for the REIT tax
adjustment."
The return (loss) on average equity and assets for the first
quarter of 2003 were (5.08%) and (0.43%) compared to 17.54% and 1.43%,
respectively for the same quarter in 2002.
Mr. Lawson stated, "The extended environment of lower interest
rates accompanying weak domestic economic activity has constrained our
ability to maximize earnings potential from our significant base of
low and non-interest bearing deposits. Coupled with significant
pre-payments of our residential real estate portfolio and holdings of
mortgage related investment securities, net interest income for the
March 2003 quarter declined 10% below last year's levels resulting in
net interest income of $10.8 million as compared to $12.0 million in
the corresponding period last year. Net interest margin declined to
3.35% from 3.62%, as rates on interest earning assets continue to
reprice faster than our ability to lower funding costs in deposits and
borrowings."
"We are continuing to pursue our long range strategy of providing
a wide range of financial services to our clients," commented Lawson,
"while maintaining a strong capital position and asset quality. The
fruits of this strategy are evident in the 16.3% increase in
non-interest income for the first quarter of 2003 to $5.2 million
compared to $4.5 million in the first quarter of 2002, excluding net
gains from discretionary sales of securities and loans. The solid
growth in fee-based revenues, derived from investment management fees,
insurance commissions, brokerage fees, as well as branch and
electronic based deposit banking fees, is a reflection of our
commitment to continually expanding our products and expertise in
these areas. Delivering this expertise out to our offices has been the
focus of this first quarter, through the placing of broadly skilled
financial advisors right at the front door of fifteen of our offices."
Non-interest expense increased $1.0 million or 9.2% from $11.2
million in the first quarter of 2002 to a level of $12.2 million for
the first quarter of 2003. Interest of $802,000 accrued on the
aforementioned retroactive REIT state tax liability is the largest
component of the year-over-year quarterly increase in non-interest
expense. Expenses related to the expansion in financial service
offices account for the remaining increase in non-interest expense.
Mr. Lawson commented, "Stockholder's equity to assets ratios stood
at 8.4% and 8.3%, respectively, as stockholder's equity on March 31,
2003 was $111.9 million as compared to $117.3 million a year ago.
Total non-performing assets remained relatively unchanged from $3.3
million to $3.8 million at March 31, 2002 and 2003, respectively. The
allowance for loan losses was $12.6 million on March 31, 2003, up
slightly from $12.3 million a year ago. As residential mortgage loans
have declined $127.0 million, borrowings from the FHLBB have
correspondingly declined by $122.4 million. Partially offsetting the
lower levels of residential mortgages and borrowings, investment
securities increased $34.3 million primarily funded by overall deposit
growth of $38.4 million, resulting in total assets decreasing $85.5
million year over year. Sustaining net interest income in the
continued low interest rate environment presents a challenge as a
significant portion of our liabilities have limited repricing
opportunity."
CCBT Financial Companies, Inc. declared a $0.19 quarterly dividend
on April 10, 2003 to be paid April 30, 2003 to stockholders of record
April 21, 2003.
CCBT Financial Companies, Inc. is a bank holding company with
total assets of $1.3 billion on March 31, 2003. Its subsidiary, Cape
Cod Bank and Trust Company, N.A., owns CCBT Brokerage Direct and a 51%
interest in Murray & MacDonald Insurance Services, Inc. The Company
offers a wide range of financial products and services including
deposit services, loans, municipal services, insurance, trust,
investments and retirement services to individuals, municipalities and
businesses. To find out more about CCBT Financial Companies, Inc. and
our services, please visit our web site at www.ccbt.com or better yet,
stop in for a visit at one of our thirty-four branch locations.
This report may contain statements that are not historical facts
and are considered forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
relate to, among other things, future financial results of the
Company. You should not rely on forward-looking statements because the
Company's actual results may differ materially from those indicated by
these forward-looking statements as a result of a number of important
factors. These factors include, but are not limited to, changes in
prevailing interest rates, which may reduce interest margins and
adversely affect net interest income, changes in economic conditions
and equity and fixed income market fluctuations. Reference is made to
the Company's annual report on Form 10-K and other filings submitted
to the Securities and Exchange Commission for factors that could cause
actual results to differ materially from those anticipated.
Our quarterly financial report on Form 10-Q, filed with the SEC,
will be available on our web site and will contain more detailed
financial information.
ASSETS ($000) 03/31/03 12/31/02 03/31/02
Cash & cash equivalents 62,887 60,798 83,018
Securities available for sale 420,130 510,837 385,751
Other securities 24,738 24,738 24,738
Construction loans 90,447 99,544 100,742
Commercial mortgages 283,814 283,458 265,467
Commercial loans 90,860 84,882 90,265
Residential mortgages 235,444 262,095 362,391
Home equity loans 69,091 65,794 56,585
Other consumer loans 5,584 5,629 6,682
Total portfolio loans 775,240 801,402 882,132
Loans held for sale 7,184 37,332 5,058
Loan loss reserve (12,596) (12,384) (12,336)
Goodwill 803 803 954
Other intangibles 5,205 5,511 6,430
Total intangible assets 6,008 6,314 7,384
Mortgage servicing rights 2,500 2,088 1,515
Real estate owned 1,500 1,500 1,500
Other assets 43,541 49,258 37,877
Total assets 1,331,132 1,481,883 1,416,637
LIABILITIES ($000)
Savings/NOW accounts 273,219 259,587 318,466
Money market deposits 293,928 294,295 195,449
Other consumer time 120,311 121,961 143,213
Time deposits over $100,000 38,348 37,344 46,206
Short-term borrowings 140,749 227,091 186,361
Long-term borrowings 118,233 170,750 163,979
Total interest-bearing liab. 984,788 1,111,028 1,053,674
Demand deposits 220,684 229,033 204,749
Minority interest 253 234 0
Other liabilities 13,496 23,142 40,875
Total liabilities 1,219,221 1,363,437 1,299,298
EQUITY ($000)
Common equity 111,911 118,447 117,339
Net unrealized loss on AFS securities (2,290) (1,018) 1,315
Book value per share 13.17 13.79 13.60
Common shares issued 9,061,064 9,061,064 9,061,064
Treasury shares (560,366) (470,266) (433,266)
Common shares outstanding 8,500,698 8,590,798 8,627,798
INCOME STATEMENT ($000) 1st Quarter 1st Quarter
03 02
Interest income 16,051 19,197
Interest expense 5,237 7,186
Net interest income 10,814 12,011
Net interest income (FTE) 10,899 12,120
Loan loss provision 0 0
Gain on securities 1 1,679
Financial advisor fees 1,919 1,720
Service charge on deposits 583 559
Gain on sale of loans 1,508 576
Other noninterest income 2,675 2,174
Total noninterest income 6,686 6,708
Employee salaries and benefits 6,202 6,138
Occupancy and equipment 1,507 1,464
Foreclosed property expense 33 29
Amortization of intangibles 306 306
Deposit insurance expense 43 41
Other noninterest expense 4,130 3,192
Total noninterest expense 12,221 11,170
Net income before taxes 5,279 7,549
Tax provision 6,760 2,502
Net (loss) income (1,481) 5,047
Basic EPS (0.17) 0.59
Diluted EPS (0.17) 0.58
Dividends per common share 0.19 0.19
Avg shares for basic EPS 8,563 8,622
Avg shares for diluted EPS 8,584 8,657
AVE. BALANCE SHEET ($000) 1st Quarter 1st Quarter
03 02
Taxable securities 481,992 441,324
Tax-exempt securities 23,579 23,499
Total portfolio loans 793,273 875,743
Loans held for sale 10,862 5,714
Other earning assets 0 0
Total earning assets 1,309,706 1,346,280
Total assets 1,375,587 1,416,137
Savings/NOW accounts 257,400 222,254
Money market deposits 290,393 271,632
Other consumer time 119,959 144,929
Time deposits over $100,000 37,443 49,654
Total interest-bearing deposits 705,195 688,469
Short-term borrowings 207,655 228,712
Long-term borrowings 125,283 173,984
Total interest-bearing liab. 1,038,133 1,091,165
Demand deposits 216,984 199,400
Minority interest 253 234
Other liabilities 3,499 10,237
Total liabilities 1,258,869 1,301,036
Common equity 116,718 115,101
Return (loss) on average assets (0.43%) 1.43%
Return (loss) on average equity (5.08%) 17.54%
CHARGEOFFS ($000) 1st Quarter 1st Quarter
03 02
Loan chargeoffs (22) (27)
Recoveries 234 111
Net loan charge-offs(recoveries) (212) (84)
ASSET QUALITY ($000) 03/31/03 3/31/02 12/31/02
Nonaccrual loans 2,313 1,815 1,348
Renegotiated loans 208 223 210
Other real estate owned 1,500 1,500 1,500
Total nonperforming assets 3,813 3,315 2,848
SUPPLEMENTAL DATA 03/31/03 03/31/02 12/31/02
Loans serviced f/others ($000) 372,428 225,717 322,085
FTE employees 394 398 402
Number of full service offices 34 29 34
Number of subsidiaries 2 2 2
Number of ATM's 42 35 42
CONTACT: CCBT Financial Companies, Inc.
Phillip W. Wong, 508/760-8306