Press Release
February 9,
2012
QUINNIPIAC BANK & TRUST COMPANY REPORTS THIRD CONSECUTIVE PROFITABLE QUARTER
HAMDEN, CONNECTICUT -
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.
This press release may contain certain forward-looking statements
about the Bank. Forward-looking statements include statements regarding
anticipated future events and can be identified by the fact that they do
not relate strictly to historical or current facts. They often include
words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend”
or future or conditional verbs such as “will,” “would,” “should,” “could,”
or “may.” Forward-looking statements, by their nature, are subject to
risks and uncertainties. Certain factors that could cause actual results
to differ materially from expected results include increased competitive
pressures, changes in the interest rate environment, general economic
conditions or conditions within the securities markets, and legislative
and regulatory changes that could adversely affect the business in which
the Bank is engaged.
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