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Tax benefits lift CBT’s 1Q net

Connecticut Bank and Trust Co.’s first-quarter earnings rose more than five-fold due to the positive impact of certain tax treatments on the Hartford community lender’s bottom line.

CBT earned $709,000, or 19 cents a share, in the first three months of this year, up from $149,000, or 4 cents a share, earned the same period last year.

Without the tax benefit of operating loss carryforwards, CBT’s first quarter net profit attributable to common stockholders was just $106,000, the bank said.

Chairman and CEO David A. Lentini said the bank issued more than $8.5 million in new loans in the quarter.

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However, its asset quality continued to deteriorate in the period. Nonperforming loans, as a percentage of all loans, was 5 percent at March 31, up from 0.87 in at the close of the 2010 first quarter.

Total assets at March 31 were $273.6 million vs. $274.2 million a year earlier.

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