Exhibit 99.1
SBT Bancorp, Inc. Reports First Quarter 2007 Results
SIMSBURY, Conn.--(BUSINESS WIRE)--May 4, 2007--SBT Bancorp, Inc.,
(OTCBB: SBTB), holding company for The Simsbury Bank & Trust Company,
today announced net income of $182,000 or $0.21 per diluted share for
the first quarter of 2007, compared to $119,000 or $0.14 per diluted
share for the fourth quarter of 2006 and to $283,000 or $0.33 for the
first quarter of 2006. Total assets on March 31, 2007 were $214
million.
First quarter 2007 net income was a 53% increase over fourth
quarter 2006. This marks the second quarter of increased earnings
following four quarters of declining earnings brought about by
expenses associated with SBT Bancorp's strategic initiative to expand
into neighboring communities, coupled with the impact of operating in
a difficult interest rate environment.
On March 31, 2007, loans outstanding were $155 million, an
increase of $6 million, or 4%, over a year ago, and total deposits
were $195 million, at the same level as March 31, 2006. Demand
deposits (checking account balances) grew by $5 million or 17% over
the past twelve months.
Total revenues, consisting of net interest and dividend income
plus non-interest income, were $2,259,000 in the first quarter
compared to $2,153,000 a year ago, an increase of 5%. Net interest and
dividend income increased by $58,000, or 3%. Income from fees,
services and other sources (non-interest income) increased by $48,000,
or 18%. Revenue generated by SBT Investment Services, Inc., a wholly
owned subsidiary of The Simsbury Bank & Trust Company, was a primary
contributor to the increase in non-interest income.
The Company's net interest margin (net interest and dividend
income divided by average earning assets) increased by 19 basis points
from 3.68% in the fourth quarter of 2006 to 3.87% in the first quarter
of 2007.
Total non-interest expenses for the first quarter increased by
$273,000 compared to a year earlier, primarily due to expenses
associated with expanding the Company's delivery network into the
neighboring communities of Canton and Bloomfield.
"We are encouraged by first quarter earnings," said Martin J.
Geitz, The Simsbury Bank's President & CEO. "Our improved earnings,
net interest margin and contribution from investment services
activities demonstrated the discipline and focus we have brought to
managing our funding and loan pricing and business mix, and expanding
our customer relationships. We will continue to show the discipline
necessary to build our business and our earnings during this difficult
competitive and interest rate environment."
The Simsbury Bank & Trust Company is a locally-controlled,
customer-friendly commercial bank for businesses and consumers; the
Bank has approximately $214 million in assets. The Bank serves
customers through full-service offices in Simsbury, Avon, Bloomfield,
Canton and Granby, Connecticut, SBT Online Internet banking at
simsburybank.com, free ATM transactions at 2,800 machines throughout
the northeastern U.S. via the SUM program in addition to thousands of
ATM locations world-wide, and 24 hour telephone banking. The Bank
offers investment services through its wholly-owned subsidiary, SBT
Investment Services, Inc. The Company's stock is traded
over-the-counter under the ticker symbol OTCBB: SBTB. Visit the Bank's
website at www.simsburybank.com.
Certain statements in this press release, including statements
regarding the intent, belief or current expectations of SBT Bancorp,
Inc., The Simsbury Bank & Trust Company, or their directors or
officers, are "forward-looking" statements (as such term is defined in
the Private Securities Litigation Reform Act of 1995). Because such
statements are subject to risks and uncertainties, actual results may
differ materially from those expressed or implied by such
forward-looking statements.
SBT BANCORP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
3/31/2007 12/31/2006 3/31/2006
----------- ----------- ----------
ASSETS
- -------
Cash and due from banks $9,546 $10,861 $6,751
Interest bearing deposits with
Federal Home Loan Bank 7 18 37
Federal funds sold 8,600 4,875 6,700
Money market mutual funds 31 52 103
----------- ----------- ----------
Cash and cash equivalents 18,184 15,806 13,591
Interest-bearing time deposits
with other bank 110 0 0
Investments in available for sale
securities (at fair value) 34,863 37,817 44,214
Federal Home Loan Bank Stock, at
cost 599 668 966
Loans held-for-sale 0 268 0
Loans outstanding 155,449 157,211 149,052
Less allowance for loan losses 1,690 1,698 1,712
----------- ----------- ----------
Loans, net 153,759 155,513 147,340
----------- ----------- ----------
Premises and equipment 1,467 1,552 1,003
Accrued interest receivable 829 895 827
Bank owned life insurance 2,865 2,827 2,718
Other assets 1,506 1,701 2,243
----------- ----------- ----------
Total other assets 6,667 6,975 6,791
----------- ----------- ----------
TOTAL ASSETS $214,182 $217,047 $212,902
=========== =========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
- ----------------------------------
Deposits
Demand deposits $36,907 $38,791 $31,474
Savings and NOW deposits 90,593 85,036 93,759
Certificates of deposit 67,508 74,575 69,787
----------- ----------- ----------
Total deposits 195,008 198,402 195,020
Securities sold under agreement to
repurchase 1,548 1,628 1,376
Other liabilities 1,095 898 784
----------- ----------- ----------
Total liabilities 197,651 200,928 197,180
----------- ----------- ----------
Stockholder's equity:
Common stock, no par value;
authorized 2,000,000 shares;
issued and outstanding 848,459
shares on 3/31/07; 841,991 shares
on 12/31/06; 840,897 shares on
3/31/06 8,756 8,636 8,523
Retained earnings 8,019 7,837 7,757
Accumulated other comprehensive
income (244) (354) (558)
----------- ----------- ----------
Total shareholders' equity 16,531 16,119 15,722
----------- ----------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $214,182 $217,047 $212,902
=========== =========== ==========
THE SIMSBURY BANK & TRUST COMPANY, INC.
STATEMENT OF INCOME
(Unaudited)
(Dollars in thousands, except for per share amounts)
For the quarter ended
---------------------------------
3/31/2007 12/31/2006 3/31/2006
========== =========== ==========
Interest and dividend income
Interest and fees on loans $2,387 $2,347 $2,142
Investment securities 419 465 425
Federal funds sold and overnight
deposits 72 75 62
---------- ----------- ----------
Total interest and dividend
income 2,878 2,887 2,629
---------- ----------- ----------
Interest expense
Deposits 897 978 736
Repurchase agreements 7 16 7
Federal Home Loan Bank advances 30 29 0
---------- ----------- ----------
Total interest expense 934 1,023 743
---------- ----------- ----------
Net interest and dividend
income 1,944 1,864 1,886
---------- ----------- ----------
Noninterest income
Service charges on deposit
accounts 98 95 75
Other service charges and fees 118 127 118
Increase in cash surrender value of
life insurance policies 37 5 37
Gains on loans sold 0 0 3
Investment services fees and
commissions 56 35 26
Other income 6 6 8
---------- ----------- ----------
Total noninterest income 315 268 267
---------- ----------- ----------
Noninterest expense
Salaries and employee benefits 1,059 1,052 913
Premises and equipment 372 385 295
Advertising and promotions 76 65 79
Forms and supplies 46 48 58
Professional fees 109 76 78
Directors fees 37 27 37
Correspondent charges 42 45 47
Postage 24 28 26
Other expenses 239 250 198
---------- ----------- ----------
Total noninterest expense 2,004 1,976 1,731
---------- ----------- ----------
Income before taxes 255 156 422
Income tax provision 73 37 139
---------- ----------- ----------
Net income $182 $119 $283
========== =========== ==========
Comprehensive income $292 $209 $280
========== =========== ==========
Net income per share, basic $0.21 $0.14 $0.34
========== =========== ==========
Average shares outstanding, basic 847,413 841,798 840,001
========== =========== ==========
Net income per share, assuming
dilution $0.21 $0.14 $0.33
========== =========== ==========
Average shares outstanding,
assuming dilution 858,195 855,524 856,223
========== =========== ==========
CONTACT: Anthony F. Bisceglio, 860-408-5493
860-408-4679 (fax)
EVP & CFO
abisceglio@simsburybank.com