CCBT Financial Companies, Inc. Report 2003 First Quarter Results.Business Editors SOUTH YARMOUTH Yarmouth, city, Canada Yarmouth (yär`məth), city (1991 pop. 7,781), SW N.S., Canada, on the Atlantic Ocean. It is a port, with exports of lumber, fish, berries, and Irish moss. , Mass.--(BUSINESS WIRE)--April 17, 2003 CCBT CCBT Comprehensive Cognitive Behavioral Therapy Financial Companies, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CCBT) Chief Executive Officer and President Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and B. Lawson The name Lawson can refer to a number of different things: People
tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, as compared to earnings of $.58 per diluted share in the first quarter of 2002. Mr. Lawson stated, "CCBT's 2003 first quarter loss was the result of the March 5, 2003 amendment of Massachusetts' law that expressly disallows the deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. for dividends received from a real estate investment trust subsidiary (a "REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). "). We accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. a liability in the first quarter of 2003 of approximately $5.1 million, representing an estimate of the additional state tax liability of $7.1 million and including interest of $802,000 (net of any federal and state tax deductions Tax deduction An expense that a taxpayer is allowed to deduct from taxable income. tax deduction See deduction. associated with such taxes and interest), relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the deduction for dividends received from a REIT for the 1999 through 2001 fiscal years, and the anticipated deduction for fiscal 2002, thus reducing earnings by $5.1 million in the first quarter of 2003. As a result of the enactment of this legislation, we have ceased recording the tax benefits associated with the dividend received deduction effective for the 2003 tax year. We believe that this legislation will be challenged, especially the retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a provisions, on constitutional and other grounds. We would support such a challenge and otherwise intend to defend vigorously vig·or·ous adj. 1. Strong, energetic, and active in mind or body; robust. See Synonyms at healthy. 2. Marked by or done with force and energy. See Synonyms at active. our position. Earnings for the quarter would have been positive if not for the REIT tax adjustment." The return (loss) on average equity and assets for the first quarter of 2003 were (5.08%) and (0.43%) compared to 17.54% and 1.43%, respectively for the same quarter in 2002. Mr. Lawson stated, "The extended environment of lower interest rates accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. weak domestic economic activity has constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. our ability to maximize earnings potential from our significant base of low and non-interest bearing deposits. Coupled with significant pre-payments of our residential real estate portfolio and holdings of mortgage related investment securities, net interest income for the March 2003 quarter declined 10% below last year's levels resulting in net interest income of $10.8 million as compared to $12.0 million in the corresponding period last year. Net interest margin declined to 3.35% from 3.62%, as rates on interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin continue to reprice faster than our ability to lower funding costs in deposits and borrowings." "We are continuing to pursue our long range strategy of providing a wide range of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to our clients," commented Lawson, "while maintaining a strong capital position and asset quality. The fruits of this strategy are evident in the 16.3% increase in non-interest income for the first quarter of 2003 to $5.2 million compared to $4.5 million in the first quarter of 2002, excluding net gains from discretionary sales of securities and loans. The solid growth in fee-based revenues, derived from investment management fees, insurance commissions, brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. fees, as well as branch and electronic based deposit banking fees, is a reflection of our commitment to continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. expanding our products and expertise in these areas. Delivering this expertise out to our offices has been the focus of this first quarter, through the placing of broadly skilled financial advisors right at the front door of fifteen of our offices." Non-interest expense increased $1.0 million or 9.2% from $11.2 million in the first quarter of 2002 to a level of $12.2 million for the first quarter of 2003. Interest of $802,000 accrued on the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. retroactive REIT state tax liability is the largest component of the year-over-year quarterly increase in non-interest expense. Expenses related to the expansion in financial service offices account for the remaining increase in non-interest expense. Mr. Lawson commented, "Stockholder's equity Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. to assets ratios stood at 8.4% and 8.3%, respectively, as stockholder's equity on March 31, 2003 was $111.9 million as compared to $117.3 million a year ago. Total non-performing assets remained relatively unchanged from $3.3 million to $3.8 million at March 31, 2002 and 2003, respectively. The allowance for loan losses was $12.6 million on March 31, 2003, up slightly from $12.3 million a year ago. As residential mortgage loans have declined $127.0 million, borrowings from the FHLBB FHLBB abbr. Federal Home Loan Bank Board have correspondingly declined by $122.4 million. Partially offsetting the lower levels of residential mortgages and borrowings, investment securities increased $34.3 million primarily funded by overall deposit growth of $38.4 million, resulting in total assets decreasing $85.5 million year over year. Sustaining net interest income in the continued low interest rate environment presents a challenge as a significant portion of our liabilities have limited repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing opportunity." CCBT Financial Companies, Inc. declared a $0.19 quarterly dividend on April 10, 2003 to be paid April 30, 2003 to stockholders of record April 21, 2003. CCBT Financial Companies, Inc. is a bank holding company with total assets of $1.3 billion on March 31, 2003. Its subsidiary, Cape Cod Cape Cod, narrow peninsula of glacial origin, 399 sq mi (1,033 sq km), SE Mass., extending 65 mi (105 km) E and N into the Atlantic Ocean. It is generally flat, with sand dunes, low hills, and numerous lakes. Bank and Trust Company, N.A., owns CCBT Brokerage Direct and a 51% interest in Murray Murray, river, Australia Murray, principal river of Australia, 1,609 mi (2,589 km) long, rising in the Australian Alps, SE New South Wales, and flowing westward to form the New South Wales–Victoria boundary. & MacDonald Mac·don·ald , Sir John Alexander 1815-1891. Canadian politician and the first prime minister of the Dominion of Canada (1867-1873 and 1878-1891). He is considered the organizer of the Canadian confederation, established in 1867. Insurance Services, Inc. The Company offers a wide range of financial products and services including deposit services, loans, municipal services This article or section deals primarily with the United Kingdom and does not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , insurance, trust, investments and retirement services to individuals, municipalities and businesses. To find out more about CCBT Financial Companies, Inc. and our services, please visit our web site at www.ccbt.com or better yet, stop in for a visit at one of our thirty-four branch locations. This report may contain statements that are not historical facts and are considered forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements relate to, among other things, future financial results of the Company. You should not rely on forward-looking statements because the Company's actual results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, changes in prevailing interest rates, which may reduce interest margins and adversely affect net interest income, changes in economic conditions and equity and fixed income market fluctuations. Reference is made to the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other filings submitted to the Securities and Exchange Commission for factors that could cause actual results to differ materially from those anticipated. Our quarterly financial report on Form 10-Q Form 10-Q See 10-Q. , filed with the SEC, will be available on our web site and will contain more detailed financial information.
ASSETS ($000) 03/31/03 12/31/02 03/31/02
Cash & cash equivalents 62,887 60,798 83,018
Securities available for sale 420,130 510,837 385,751
Other securities 24,738 24,738 24,738
Construction loans 90,447 99,544 100,742
Commercial mortgages 283,814 283,458 265,467
Commercial loans 90,860 84,882 90,265
Residential mortgages 235,444 262,095 362,391
Home equity loans 69,091 65,794 56,585
Other consumer loans 5,584 5,629 6,682
Total portfolio loans 775,240 801,402 882,132
Loans held for sale 7,184 37,332 5,058
Loan loss reserve (12,596) (12,384) (12,336)
Goodwill 803 803 954
Other intangibles 5,205 5,511 6,430
Total intangible assets 6,008 6,314 7,384
Mortgage servicing rights 2,500 2,088 1,515
Real estate owned 1,500 1,500 1,500
Other assets 43,541 49,258 37,877
Total assets 1,331,132 1,481,883 1,416,637
LIABILITIES ($000)
Savings/NOW accounts 273,219 259,587 318,466
Money market deposits 293,928 294,295 195,449
Other consumer time 120,311 121,961 143,213
Time deposits over $100,000 38,348 37,344 46,206
Short-term borrowings 140,749 227,091 186,361
Long-term borrowings 118,233 170,750 163,979
Total interest-bearing liab. 984,788 1,111,028 1,053,674
Demand deposits 220,684 229,033 204,749
Minority interest 253 234 0
Other liabilities 13,496 23,142 40,875
Total liabilities 1,219,221 1,363,437 1,299,298
EQUITY ($000)
Common equity 111,911 118,447 117,339
Net unrealized loss on AFS securities (2,290) (1,018) 1,315
Book value per share 13.17 13.79 13.60
Common shares issued 9,061,064 9,061,064 9,061,064
Treasury shares (560,366) (470,266) (433,266)
Common shares outstanding 8,500,698 8,590,798 8,627,798
INCOME STATEMENT ($000) 1st Quarter 1st Quarter
03 02
Interest income 16,051 19,197
Interest expense 5,237 7,186
Net interest income 10,814 12,011
Net interest income (FTE) 10,899 12,120
Loan loss provision 0 0
Gain on securities 1 1,679
Financial advisor fees 1,919 1,720
Service charge on deposits 583 559
Gain on sale of loans 1,508 576
Other noninterest income 2,675 2,174
Total noninterest income 6,686 6,708
Employee salaries and benefits 6,202 6,138
Occupancy and equipment 1,507 1,464
Foreclosed property expense 33 29
Amortization of intangibles 306 306
Deposit insurance expense 43 41
Other noninterest expense 4,130 3,192
Total noninterest expense 12,221 11,170
Net income before taxes 5,279 7,549
Tax provision 6,760 2,502
Net (loss) income (1,481) 5,047
Basic EPS (0.17) 0.59
Diluted EPS (0.17) 0.58
Dividends per common share 0.19 0.19
Avg shares for basic EPS 8,563 8,622
Avg shares for diluted EPS 8,584 8,657
AVE. BALANCE SHEET ($000) 1st Quarter 1st Quarter
03 02
Taxable securities 481,992 441,324
Tax-exempt securities 23,579 23,499
Total portfolio loans 793,273 875,743
Loans held for sale 10,862 5,714
Other earning assets 0 0
Total earning assets 1,309,706 1,346,280
Total assets 1,375,587 1,416,137
Savings/NOW accounts 257,400 222,254
Money market deposits 290,393 271,632
Other consumer time 119,959 144,929
Time deposits over $100,000 37,443 49,654
Total interest-bearing deposits 705,195 688,469
Short-term borrowings 207,655 228,712
Long-term borrowings 125,283 173,984
Total interest-bearing liab. 1,038,133 1,091,165
Demand deposits 216,984 199,400
Minority interest 253 234
Other liabilities 3,499 10,237
Total liabilities 1,258,869 1,301,036
Common equity 116,718 115,101
Return (loss) on average assets (0.43%) 1.43%
Return (loss) on average equity (5.08%) 17.54%
CHARGEOFFS ($000) 1st Quarter 1st Quarter
03 02
Loan chargeoffs (22) (27)
Recoveries 234 111
Net loan charge-offs(recoveries) (212) (84)
ASSET QUALITY ($000) 03/31/03 3/31/02 12/31/02
Nonaccrual loans 2,313 1,815 1,348
Renegotiated loans 208 223 210
Other real estate owned 1,500 1,500 1,500
Total nonperforming assets 3,813 3,315 2,848
SUPPLEMENTAL DATA 03/31/03 03/31/02 12/31/02
Loans serviced f/others ($000) 372,428 225,717 322,085
FTE employees 394 398 402
Number of full service offices 34 29 34
Number of subsidiaries 2 2 2
Number of ATM's 42 35 42
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