Press Release

February 9, 2012



Quinnipiac Bank & Trust Company reports pretax income of $200,000 for the quarter ended December 31, 2011, an increase of $344,000 compared to a loss of $144,000 in the fourth quarter of 2010. For the year ended December 31, 2011, pretax income of $282,000 reflects an improvement of $981,000 compared to the $699,000 loss for year ended December 31, 2010.

Net interest income increased $272,000 or 50% for the three months ended December 31, 2011 compared to the same quarter last year; on a year to date basis net interest income increased $1.1 million or 65%. The increase in net interest income is attributable to an increase in average outstanding balances in the loan and investment portfolios and lower deposit funding costs. The provision for loan losses decreased $67,000 and $154,000, respectively, for the three and twelve months ended December 31, 2011 compared to the same periods in 2010. These decreases in the provision are due to the overall credit quality of the loan portfolio combined with adherence to prudent underwriting standards and a lower annual growth rate in the portfolio during 2011 compared to 2010. A lower volume of residential loans placed with outside investors was the primary driver behind the decrease in noninterest income during the periods presented. The decline in noninterest expenses in the fourth quarter of 2011 as compared to the fourth quarter of 2010 is primarily due to decreases in consulting and professional services and lower deposit insurance premium assessments. Noninterest expenses increased on a year to date comparison due primarily to higher costs associated with staffing, premises, data processing and advertising.

Mark Candido, President and Chief Executive Officer of the Bank stated that he is extremely proud of what the Bank has been able to achieve despite the challenges presented by the economic environment since the bank opened. “It is especially gratifying whenever I am contacted by one of my peers from other Connecticut Banks congratulating us on our results. We have entered 2012 energized and committed to maintaining our stride. The officers, employees and directors of the bank are intent on their efforts at expanding the name recognition and reputation of Quinnipiac Bank & Trust Company as a community focused bank, one that combines individualized service with the essential technology solutions required by today’s customer. We remain determined to continue providing quality service to our community and customers who have contributed to our success while increasing shareholder value.”

Net income for the year ended December 31, 2011 was $1,821,000; these results include the reversal of the $1.6 million valuation allowance applied to the deferred tax asset as of December 31, 2010. Management believes that the Bank has the ability to generate the necessary future income to realize its deferred tax asset; therefore, management has concluded that a valuation allowance is no longer needed.

Financial results as of December 31, 2011 reflect an increase in total assets of $18.8 million or 33% to $76.0 million compared to $57.2 million at December 31, 2010. Loan business development efforts resulted in an increase in the loan portfolio of $14.4 million or 32% to $60.2 million at December 31, 2011 from $45.7 million at December 31, 2010. Richard Barredo, Executive Vice President and Senior Lending Officer commented: “The credit quality of our loan portfolio remains high and there are no nonperforming assets at year end.” During the same period deposits increased $16.9 million or 34% to $66.8 million at December 31, 2011 from $49.9 million at December 31, 2010.

Quinnipiac Bank & Trust Company commenced operations in March of 2008 and is headquartered in Hamden, Connecticut. The Company previously announced its purchase of land at 2704 Dixwell Avenue in Hamden, Connecticut on which it will begin constructing its new headquarters in 2012.

QBT 2011 Fourth Quarter

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