Simsbury Bank & Trust Co.’s fourth-quarter net income skidded after rising interest rates crimped demand for mortgage refinancings tied to a chunk of the bank’s revenue.
For three months ended Dec. 31, parent SBT Bancorp Inc. said Tuesday it netted $132,000, or 12 cents a diluted share, down from $604,000, or 66 cents a share, netted the same quarter a year earlier.
For 2013, SBT’s net income was $1.14 million, or $1.17 a diluted share, about half the $2.1 million, or $2.18 a share, netted for all of 2012, the bank said.
“2013 featured double digit growth in our loans and continued strong deposit growth,’’ said SBT President and CEO Martin J. Geitz. “Our earnings performance, however, was disappointing as the sudden and dramatic rise in market interest rates adversely impacted our mortgage gain-on-sale revenue trend due to lower demand for mortgage re-financings.”
