Bank pg 3 4-28-11
- Details
- Category: Past Issues
PUTNAM --- PSB Holdings, Inc. , the holding company for Putnam Bank, reported net income for the quarter ended March 31, 2011 of $530,000 or $.08 per basic and diluted share as compared to net income of $251,000 or $.04 per basic and diluted share for the quarter ended March 31, 2010. The net income for the March 31, 2011 quarter included $420,000 in income due to a partial legal settlement regarding prior security losses. Other-than-temporarily impaired investment write-downs decreased by $854,000 from the quarter ended March 31, 2011 compared to the quarter ended March 31, 2010. This was partially offset by a decrease in net gains on security sales of $570,000 for the quarter ended March 31, 2011 compared to the quarter ended March 31, 2010. For the nine months ended March 31, 2011, net income totaled $1.20 million or $.19 per basic and diluted share as compared to net income of $1.18 million or $.19 per basic and diluted share for the nine months ended March 31, 2010. This was primarily due to the $420,000 in income from the legal settlement and a decrease in other-than-temporarily impaired investment write-downs of $1.3 million from the nine months ended March 31, 2011 compared to the nine months ended March 31, 2010. This was partially offset by a decrease in net gains on security sales of $1.2 million for the nine months ended March 31, 2011 compared to the quarter ended March 31, 2010.
“The bank’s capital ratios and net income continue to increase with the Bank remaining well-capitalized and net income of $1.2 million for the nine months ended March 31, 2011. The allowance for loan losses is 1.10% of total loans and we have significantly decreased the amount of non-performing loans. We remain encouraged by the performance of both our commercial and retail lending operations,” said Chairman and Chief Executive Officer Thomas A. Borner, “Our branch network has been enhanced with our newest location in Norwich, Connecticut and we continue to make solid inroads into the New London County market,” he added.
Total assets of the Company were $476.6 million at March 31, 2011 compared to $489.4 million at June 30, 2010. Total liabilities of the Company decreased to $429.7 million at March 31, 2011 from $445.5 million at June 30, 2010.
Net interest and dividend income decreased $209,000 or 6.9% to $2.8 million for the quarter ended March 31, 2011 compared to $3.0 million for the quarter ended March 31, 2010. Net interest rate spread decreased 14 basis points to 2.33% from 2.47% for the quarters ended March 31, 2011 and 2010, respectively. Net interest margin decreased 17 basis points to 2.56% from 2.73% for the same periods. Net interest and dividend income decreased $835,000 or 8.9% to $8.54 million for the nine months ended March 31, 2011 compared to $9.37 million for the nine months ended March 31, 2010. Net interest rate spread decreased 22 basis points to 2.29% from 2.51% for the nine months ended March 31, 2011 and 2010, respectively. Net interest margin decreased 26 basis points to 2.53% from 2.79% for the same periods. The provision for loan losses decreased $39,000 or 15.2% to $218,000 for the quarter ended March 31, 2011 compared to $257,000 for the quarter ended March 31, 2010.
Noninterest income increased $626,000 or 178.9% to $976,000 for the quarter ended March 31, 2011 compared to noninterest income of $350,000 for the quarter ended March 31, 2010. This was primarily due to $420,000 in income from a legal settlement and a decrease of $854,000 in write-downs of investments during the quarter ended March 31, 2011 compared to the quarter ended March 31, 2010. Noninterest expense increased $39,000 or 1.4% to $2.86 million for the quarter ended March 31, 2011 compared to $2.82 million for the quarter ended March 31, 2010. Salaries and benefits decreased $27,000 or 1.8% to $1.46 million for the quarter ended March 31, 2011 compared to $1.48 million for the quarter ended March 31, 2010. Occupancy expense increased $55,000 or 17.6% to $368,000 for the quarter ended March 31, 2011 compared to $313,000 for the quarter ended March 31, 2010. All other noninterest expenses increased $11,000 or 1.1% to $1.03 million for the quarter ended March 31, 2011 compared to $1.02 million for the quarter ended March 31, 2010.
Income tax expense increased $138,000 or 265.4% to $190,000 for the quarter ended March 31, 2011 compared to $52,000 for the quarter ended March 31, 2010. Income tax expense increased $22,000 or 6.3% to $370,000 for the nine months ended March 31, 2011 compared to $348,000 for the nine months ended March 31, 2010.