The parent of Simsbury Bank & Trust said Wednesday first-quarter earnings shot up 67 percent, spurred by wider spreads in its net interest margin.
Bank parent SBT Bancorp, announced net income of $243,000, or 21 cents a share, for the three months ended March 31, up from $146,000, or 17 cents per earned the same period a year ago.
The bank’s total income, consisting of net interest and dividend income plus noninterest income, were $2.9 million in the quarter, up 24 percent from $2.3 million a year earlier.
SBT’s taxable-equivalent net interest margin — the difference between what the bank earns on loans and pays on deposits — increased 43 basis points to 3.88 percent.
“SBT Bancorp experienced a good quarter of growth in loans, deposits, revenues and earnings” said President and CEO Martin J. Geitz. “We will continue to focus on serving our current and new customers very well and thereby earning more of their business.”
During the quarter, the bank set aside $225,000 to cover loans that may go bad in the future.
The bank said its loan portfolio remains relatively low-risk, with 71 percent of total loans underwritten as conventional residential mortgages and consumer home equity lines.
SBT also said its exposure to commercial real estate loans is relatively conservative.
The company’s assets and deposits both grew in the quarter to $282 million and $254 million, respectively.
