|
|
|
Bancorp Connecticut Inc. (NASDAQ: BKCT)
121 Main Street, Southington 06489-2533
President/Chief Executive Officer: Robert D. Morton
Revenues (Interest Income) (FYE December 31, 1998): $35.3 million
Net Income (FYE December 31, 1998): $6.3 million
Market Capitalization: $87.4 million
Employees: 101
|
Business New Haven
9/20/1999
By: BNH
|
It is often said that good things come in small packages. And, compared to the mega-banks out there today, Bancorp Connecticut Inc. is certainly a somewhat smaller package. With total assets of $521.4 million and stockholder equity at $49.9 million at its year ended December 31, Bancorp Connecticut is the parent of its single wholly owned subsidiary, Southington Savings Bank, which is largely responsible for its parent's financial performance.
1998 witnessed much activity for Southington Savings Bank, which operates four branches in Southington. In that year the bank opened its first out-of-town branch in Wallingford and also commenced operations of two subsidiaries.
SSB Mortgage Corp. was created as a passive investment company to effect a reduced tax rate for the company starting in 1999. Its other new subsidiary, BCI Financial Corp., is involved in the indirect financing of auto loans and also generates revenues from selling loans to financial institutions. Also during the year, the bank installed a new computer system to enable the bank to provide improved products and better serve customers.
The main source of revenue for Southington Savings Bank is through loans to individuals or to small to middle-market commercial customers. Net loans for calendar 1998 grew nine percent to $278.4 million, compared to $255.5 million for 1997. Almost half of the loan portfolio consists of residential real estate, with another 20 percent for consumer loans and 30 percent for commercial loans and mortgages.
Total deposits for the bank, including regular savings, NOW accounts, money-market savings, CDs, club accounts and no-interest demand accounts, stood at $345.6 million at the end of 1998, an increase of 8.9 percent over $317.3 million for 1997. The bank attributes these increases largely to two sources: promotion of its checking account product, which pays interest comparable to money-market rates for mutual funds, and increased business from the opening of the Wallingford branch.
About half of the bank's deposits are in certificates of deposits; 40 percent are in various interest-bearing account offerings; with the remaining deposits in demand accounts that earn no interest. The bank also offers brokerage services to its clients for planning for financial needs and offers such products as stocks and bonds, life or long-term care insurance, annuities and mutual funds.
At the end of 1998 the bank held investments totaling $217.3 million, representing an increase of more than 30 percent from the 1997 figure of $166.7 million. The bank cites its purchase of about $43 million in federal government vehicles for the increase. The purchases were paid for through borrowings from the Federal Home Loan Bank and broker-repurchase agreements.
At year-end about 42 percent of the bank's investments were in mortgage-backed securities, 28 percent in marketable equity securities and 22 percent in federal government obligations. The remaining investments were in municipal bonds, mutual funds and capital trust preferred securities.
Revenues for the bank derive largely from income generated from interest and fees from loans and interest and dividends earned on investments and other income sources such as gains on the sale of securities. From this one must subtract interest paid on deposits or borrowings, write off loan losses and the deduction of operating expenses to derive net income.
For Bancorp Connecticut total interest income for 1998 was $35.3 million, compared to $31.9 million for 1997, a 10.6-percent increase. Net income of $6.3 million ($1.14 per diluted share) represents a 7.6-percent increase over 1997 net income of $5.9 million ($1.08 per diluted share).
The first 6 months ended June 30 witnessed continued growth over the equivalent period a year ago. Net loans increased 17 percent to $300.7 million from $256.1 million for the prior year's first half. Total assets grew nearly eight percent to $536.8 million from $497.2 million. Interest income for the half-year period rose seven percent to $18.5 million from $17.2 million.
Net income for the six months rose 8.5 percent to $3.8 million (68 cents per share), compared to $3.5 million (63 cents per share) for the comparable 1998 period.
The company cites various positive indications at the six-month mark including a 44 percent decline in non-performing assets to $1.7 million from $3.0 million at June 30, 1998. Commercial business loans increased over 24 percent from the prior year 6-month period. The second quarter 1999 also reported a record in net income, posting an increase of 11.8 percent to $1.957 million (35 cents per diluted share) compared to $1.751 million (31 cents per diluted share) for the 1998 second quarter. Although certain expenses rose due to the opening of the Wallingford office, the new computer system and its formation of its auto finance unit, the company expects the growth rate of these expenses to reduce in the future.
Over the past five years the company's stock has split three times. In 1996 the company announced a stock-repurchase program of 15 percent of outstanding stock. By mid-1997 it had repurchased more than 519,000 shares. Also during this five-year period, a dividend-reinvestment plan was initiated. Continuing the trend of dividend increases for each of the past five years, in July a 15 cent-per-share dividend was declared by the company's directors.
However, the stock has not necessarily reflected Bancorp Connecticut's performance. The 52-week range spans a low of 13 to a high of 18 1/4. Most recently, the stock closed at 16 5/8 on September 7. Analyst input indicates the company's performance is in line with other banks and thrifts of similar size. The outlook appears strong but is necessarily constrained somewhat by the geographic market in which it operates.
BUSINESS WIRE
By Kristine Hansen
Sovereign to Buy Fleet, BankBoston Branches
BOSTON - The Philadelphia-based Sovereign Bancorp has announced that it will buy 278 branches along with other assets from Fleet Financial Group Inc. (NYSE: FLT) and BankBoston Corp. (NYSE: BKB) for $1.4 billion. Sovereign also said it plans to purchase deposits of $12 billion, loans of $8 billion and 160 ATMs. As a result of this deal, Sovereign will become the third-largest banking operation in New England, following the merged Fleet/BankBoston and Citizens/US Trust entities. The acquired branches will be renamed Sovereign Bank New England. Fleet and BankBoston are also planning to sell 28 branches located in Massachusetts to several small banks in the Bay State.
BHC Closes Land Deal
BRIDGEPORT - The town of Weston, along with BHC Co., a subsidiary of Aquarion Co. (NYSE: WTR), and the Aspetuck Land Trust Inc. have closed the sale of property identified as Trout Brook Valley. The $12 million deal involves almost 640 acres of land in Weston and Easton held by BHC. Also, 90 acres of land at Trout Brook Valley value at about $1.7 million is planned to be donated by BHC.
Celera Genomics/Gemini Research Sign Pact
ROCKVILLE, Md. and CAMBRIDGE, UK - PE Corp.'s (NYSE: PEB) unit, Celera Genomics (NYSE: CRA) and Gemini Holdings PLC's subsidiary, Gemini Research Limited, announced a collaborative agreement for the discovery of genes specific to age-related illnesses. The two partners plan to license the discoveries to other parties interested in the development of commercialized diagnostic and therapeutic products.
Ames Sales Keep Moving
ROCKY HILL - Buoyed by a strong back-to-school market, Ames Department Stores Inc. (NASDAQ: AMES) announced increased sales for the four-week period ending August 28. Net sales of $236.9 million for the period were 43.8 percent above the $164.7 million figure posted during the prior-year period. Looking at comparable store sales of 287 stores, net sales were $165.5 million vs. $158.9 million a year ago. For the year to date (30 weeks), net sales were $1.922 billion, a 60.6-percent increase over the previous year's figure of $1.197 billion. Comparable store sales for the 30-week period were $1.256 billion, an 8.6-percent increase over last year's sales of $1.157 billion.
FCC Revise Conditions of SBC/Ameritech Merger
WASHINGTON, D.C. - Regarding the proposed SBC Communications Inc. (NYSE: SBC) merger with Ameritech Corp. (NYSE: AIT), the Federal Communications Commission has revised concessions to be met by SBC. However, opponents of the merger - smaller local phone companies and long-distance carriers - say they are dissatisfied with the revision, saying the concessions fall short of what is necessary to keep SBC/Ameritech from gaining unfair competitive advantage.
JRC Gobbles Connecticut Mag
TRENTON, N.J. - On September 1, the Journal Register Co. (NYSE: JRC) announced its purchase of Connecticut Magazine. Founded in 1980, Connecticut Magazine has a paid circulation of about 88,000.
Snap.com and Xoom.com To Carry Free Online Games
NEW YORK - In an agreement between Snap.com, a joint venture of General Electric Co. (NYSE: GE) and CNET Inc. (NASDAQ: CNET), and Xoom.com Inc. (NASDAQ: XMCM), interactive games from pogo.com will be carried at no extra charge. Subscribers to Xoom and Snap will be able to use the interactive games, including arcade games and board games.
First Union One of 100 Best for Working Moms
CHARLOTTE, N.C. - First Union Corp. (NYSE: FTU) has been named to Working Mother magazine's list of the "100 Best Companies for Working Mothers." This is the fourth year that First Union has received the designation. First Union has such family-friendly practices and facilities as child-care centers, flexible work schedules, time off for participation in school volunteerism and work-life seminars.
Tyco To Acquire AFC Cable
HAMILTON, Bermuda - Tyco International Ltd. (NYSE: TYC) has signed a definitive agreement to buy AFC Cable Inc. (NASDAQ: AFCX) in a deal worth $575 million. Holders of AFC Cable stock are expected to receive a fraction of a share of Tyco stock . The purchase is subject to all necessary approvals.
Webster Financial Added to MidCap 400
WATERBURY - Webster Financial Corp. (NASDAQ: WBST) announced that it was named to Standard & Poor's MidCap 400 Index, which measures performance of mid-sized companies traded on the U.S. stock market. The segment includes companies with market capitalization of $1 billion to $4 billion. More than 95 percent of pension-plan sponsors and mutual-fund managers in the U.S. use this index.
|
Go FirstGo PreviousGo
NextGo LastGo
to Index
|
|
