Hartford Business.com
May 17, 2008
Browse News by Topic
- Manufacturing & Technology RSS
- Entrepreneurs & Economy RSS
- Professional Services & Media RSS
- Finance & Real Estate RSS
- Executive Suite RSS
- Opinion & Commentary RSS
- Accolades & More RSS
Data Products
To Do List
- Signup for HBJ Today
- Add a Calendar Item
- Submit News Release
- Advertise in the HBJ
- Subscribe to the HBJ
- 40 Under Forty Nomination
- Business Champions Nomination
- Women in Business Nomination
- Register for the CT Business Expo
- Greater Hartford Guest Guide
- Update your account information
Hartford-based Connecticut Bank and Trust Co. cut continued to trim its losses in the first quarter of its fiscal year, according to a recent financial report.
For the first three months of the year, CBT reported a net loss of $396,000, or 11 cents per share. That was better than the same period a year ago, when the bank had a net loss of $638,000, or 18 cents per share. Total assets were $204.2 million as of March 31, an increase of $25.5 million from $178.7 million reported at the end of 2007.
In comments accompanying the financial report, Chairman and Chief Executive Officer David A. Lentini said the “solid asset growth remains a key ingredient for our financial success.”
During the first quarter, the bank grew its balance sheet in both loans and investments, Lentini said.
Lower Rates
“We restructured our investment portfolio and improved earnings with a positive spread compared to borrowing rates,” he said. “I believe that these actions and our ability to grow quality loans should lead to much improved results in the quarters ahead.”
He said, the recent sharp decline in interest rates “has fallen unevenly on community banks.”
“Borrowers have been quick to take advantage of the lower rates while the banks were initially reluctant to lower deposit rates fearing outflows. This has put pressure on net interest margins and CBT is no exception. Despite this trend, CBT has been able to grow net interest income,” he added.
Net interest income is derived from investments and from the difference between interest charged borrowers and interest paid to depositors. Net interest income was $1.5 million for the three months ended March 31, compared to $1.2 million for the same period a year earlier. Noninterest expenses increased $94,000, or 5 percent, in the quarter, due in part to the opening of branches in Windsor and Rocky Hill in late 2007.
CBT opened for business in 2004 with only three branches, one each in Hartford, Glastonbury, and West Hartford. Those behind the revival of the CBT name are mostly a group of the original CBT’s executives who bought the rights to the name from Fleet Bank after the demise of the original CBT and its then-corporate parent Bank of New England. Fleet subsequently was merged into Bank of America.
In addition to the new Windsor and Rocky Hill branches, CBT has a branch in Vernon and Windsor.
Read more Finance & Real Estate stories