Financial Press Releases
| August 6, 2008 - | First Litchfield Financial Corporation Announces Six-Month Earnings |
| May 12, 2008 - | First Litchfield Financial Corporation Announces First Quarter Earnings |
| March 31, 2008 - | First Litchfield Financial Corporation Announces 2007 Earnings |
| November 13, 2007 - | First Litchfield Financial Corporation Announces Nine-Month Earnings |
| September 21, 2007 - | First Litchfield Financial Corporation Announces Stock Repurchase Program |
First Litchfield Financial Corporation Announces Six-Month Earnings
Litchfield, Connecticut, August 6, 2008--First Litchfield Financial Corporation (trading symbol: FLFL.OB) (the “Company”), the holding company for The First National Bank of Litchfield (the “Bank”) reported earnings for the three (3) months and six (6) months ended June 30, 2008.
Net income for the Company for the six months ended June 30, 2008 totaled $1,115,000, representing an increase of $130,000 or 13% from earnings of $985,000 for the same period in 2007. Basic and diluted net income per share for the six-month period ended June 30, 2008, was $.47 per share, as compared with $.42 basic and diluted net income per share, for the same period in 2007.
Earnings for the second quarter of 2008 totaled $616,000, which is an increase of 6% from second quarter 2007 earnings of $582,000. Quarterly basic and diluted net incomes per share for 2008 were $.26 per share, compared to $.25 per basic and diluted share for the same period in 2007.
Net interest income for the second quarter of 2008 increased $411,000, or 12.4% from the second quarter of 2007. The tax equivalent net interest margin improved from 3.02% in the second quarter of 2007 to 3.10% for the second quarter of 2008. The increase in the net interest income was due to increased income attributable to higher levels of earning assets. Average earning assets for the second quarter of 2008 totaled $506 million, an overall increase of $49 million from the second quarter of 2007. Average loans and leases increased by $31 million, or 10.0%, while average investments increased by $16 million, or 10.8%. The increase in earning assets came from organic growth in commercial leasing and lending as well as increases in the securities portfolio.
Net interest income for the first six months of 2008 totaled $7,290,000, which was an increase of $806,000, or 12.4% from the same period in 2007. Similar to second quarter results, both the increase in the volume of earning assets as well as increased net interest margin contributed to the improvement in net interest income. The net interest margin (net interest income divided by average earning assets) was 3.08% for the six-month period ended June 30, 2008 which was an increase of 14 basis points from the margin of 2.94% for the six months ended June 30, 2007. These results are reflective of the Bank’s ability to decrease funding costs to a greater degree than the decrease in the return on earning assets. Average earning assets for the first six months of 2008 totaled $496 million which was $35 million, or 7.6% above average assets for the first six months of 2007. Growth during the first six months of 2008 was in commercial loans and in lease receivables which were up $6.3 million and $7.0 million, respectively, since year-end 2007.
President and CEO, Joseph J. Greco stated, “I am pleased with the growth in earnings in this challenging economic environment. Our balance sheet remains strong. Our lending practices are conservative and we follow prudent lending standards that are thoroughly examined by Federal regulators to ensure performance, soundness and risk management.”
As of June 30, 2008, deposits totaled $344.8 million which was an increase of $9.1 million over the year-end level. Growth was primarily in time certificates of deposits which increased by $8.7 million over the year end balance. This increase is attributed to the consumer’s preference towards the safety of FDIC-insured deposits and continued market penetration due to the Bank’s branch expansion within the last two years.
The Bank increased its provision for loan and lease losses during the second quarter and for the first six months of 2008. The provision for the second quarter of 2008 totaled $137,000 as compared to the second quarter of 2007 where no provision was recorded. On a year-to-date basis, the provision totaled $212,000, which was an increase of $107,000 over the six-month provision through June 30, 2007. The increase in 2008 was reflects of the growth in the loan and lease portfolio and the potential effect of economic uncertainty on the quality of the Bank’s loan and lease portfolio.
Year-to-date noninterest income for the quarter and six months ended June 30, 2008 totaled $934,000 and $1,790,000, respectively, and were up 13.0% and 10.4%, respectively, over the same periods in 2007. In both comparisons, increased noninterest income resulted from higher levels of banking service charges, such as overdraft and ATM fees, loan fees, cash management income and bank-owned life insurance.
Second quarter and six-month noninterest expense for the periods ended June 30, 2008 totaled $3,824,000, and $7,623,000, respectively and represented an increases of 10.8% and 10.3%, respectively compared to similar periods in 2007. Increases in noninterest expenses resulted from staffing, occupancy, advertising, exam, audit and consulting fees. Increased salary and benefits expenses were due to additional compliance personnel and an increased emphasis on commercial and small business development. Costs for exam and audit fees increased due to costs for regulatory reporting, compliance and internal audit. The increase in advertising is due primarily to the Bank’s image campaign as well as product and publicity promotions.
Statements contained in this news release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and expectations of management as well as the assumption made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions, including, among others: changes in market interest rates and general and regional economic conditions; changes in government regulations; changes in accounting principles; and the quality or composition of the loan and investment portfolios and other factors that may be described in the Company’s quarterly reports on Form 10-Q and its annual report on Form 10-K, each filed with the Securities and Exchange Commission, which are available at the Securities and Exchange Commission's internet website (www.sec.gov) and to which reference is hereby made. Therefore, actual future results may differ significantly from results discussed in the forward-looking statements.
The First National Bank of Litchfield is a community bank operating nine full-service banking offices in Canton, Goshen, Litchfield, Marble Dale, New Milford, Roxbury, Washington and two in Torrington, Connecticut. The Bank maintains a full-service Trust department that offers asset management, custody and estate settlement services to individuals, non-profit and commercial customers. Additionally, the Bank offers non-deposit retail investment products such as mutual funds, annuities and insurance through its relationship with Infinex Investments, Inc. The Bank’s subsidiary, First Litchfield Leasing Corporation, provides middle-market equipment leasing/financing, to the commercial markets of Connecticut and Massachusetts. The Company’s website address is www.fnbl.com.
Contact:
Joseph J. Greco, President and CEO
(860) 567-6438
(selected financial data follows)
First Litchfield Financial Corp
Selected Consolidated Financial Data
(Unaudited)
| 2008 | 2007 | |
| Total Assets | $544,630,000 | $489,919,000 |
| Loans, net | 337,242,000 | 308,156,000 |
| Investments | 152,223,000 | 136,049,000 |
| Deposits | 344,758,000 | 333,289,000 |
| Borrowings | 169,436,000 | 124,632,000 |
| Stockholders’ equity | 25,362,000 | 25,775,000 |
| Book value per share | 10.75 | 10.87 |
| Tangible book value per share | 10.75 | 10.87 |
| Leverage ratio | 7.34% | 8.03% |
| Shares outstanding | 2,360,283 | 2,371,685 |
| 2008 | 2007 | |
| Net interest income | $3,712,000 | $3,301,000 |
| Securities gains, net | 21,000 | 0 |
| Total noninterest income | 934,000 | 827,000 |
| Loan loss provision | 137,000 | 0 |
| Income before tax | 685,000 | 676,000 |
| Income tax expense | 69,000 | 94,000 |
| Net income | 616,000 | 582,000 |
| Earnings per share (basic) | .26 | .25 |
| Return on average assets | .46% | .48% |
| Return on average equity | 8.99% | 8.89% |
| 2008 | 2007 | |
| Net interest income | $7,290,000 | $6,483,000 |
| Securities gains (losses), net | 33,000 | (14,000) |
| Total noninterest income | 1,790,000 | 1,621,000 |
| Loan loss provision | 212,000 | 105,000 |
| Total noninterest expense | 7,623,000 | 6,909,000 |
| Income before tax | 1,245,000 | 1,091,000 |
| Income tax expense | 130,000 | 106,000 |
| Net income | 1,115,000 | 985,000 |
| Earnings per share (basic) | .47 | .42 |
| Return on average assets | .42% | .40% |
| Return on average equity | 7.93% | 7.36% |
First Litchfield Financial Corporation Announces First Quarter Earnings
Litchfield, Connecticut, May 12, 2008--First Litchfield Financial Corporation (trading symbol: FLFL.OB) (the "Company"), the holding company for The First National Bank of Litchfield (the "Bank"), reported earnings for the three (3) months ended March 31, 2008. Earnings for the first quarter of 2008 totaled $499,000, which is an increase of 23.8% from first quarter 2007 earnings of $403,000. First quarter basic and diluted net income per share for 2008 was $.21 per share, as compared to $.17 basic and diluted net income per share for 2007.
President and CEO Joseph J. Greco stated, "Earnings for the first quarter are consistent with our expectations of net interest income, earning assets and deposit growth. I am encouraged about the prospects for improving our net interest income based upon interest rates, the quality of earning assets, and our ability to grow our expanded branch infrastructure. In addition, the continued growth from our wealth management business and leasing operations are expected to enhance and contribute to the Bank's profitability."
Net interest income for the first quarter of 2008 totaled $3,577,000, an increase of $395,000 or 12.4% from the first quarter of 2007. The increase in net interest income for the first quarter of 2008 was due to increased income resulting from an improved mix of earning assets, and the growth of the loan and lease portfolio. Interest and dividend income for the first quarter of 2008 totaled $7,256,000, which was an increase of 5.5%, from the first quarter of 2007 interest and dividend income of $6,877,000. The increase is the result of a higher level of average earning assets resulting from loan and lease growth. Additionally, the emphasis on deposit growth and cost-efficient funding has helped to slow further margin erosion. Consistent with that goal, net loans and leases increased $3,873,000 over the first quarter 2007 amount. The increase of $425,000 in net interest income after the provision for loan and lease losses also reflects a $30,000 reduction in the amount of the provisions to the allowance for loan and lease losses for the first quarter ended March 31, 2008 as compared with the first quarter of 2007. The year-over-year reduction in the provision for loan and lease losses is reflective of strong asset quality. This asset quality comes from our adherence to prudent underwriting standards and our conviction that we will not compromise those standards in order to achieve loan growth.
Retail deposits, which excludes brokered deposits, increased $5,954,000 or 1.8% over their respective year-end levels. This increase is attributed to the Bank's expansion from the opening of three (3) new branches during 2006, as well as to an increasing emphasis on the development and retention of commercial, municipal and small business accounts. Money market deposits and time certificates of deposit increased $2,629,000 and $8,514,000, respectively, due to growth in the relationship money market deposit products and certificates of deposit.
Noninterest income for the three months ended March 31, 2008 totaled $856,000, up $61,000, or 7.7%, from noninterest income from the same period in 2007. Trust fee income totaled $340,000 which represents an increase of $10,000, or 3%, from the first three months of 2007. This increase is due to fees from the Company's growth in investment management services. Banking service charges and fees totaled $345,000, increasing $34,000 or 11% from the previous year, as a result of revenue opportunities from deposit accounts and cash management services.
Noninterest expense for the three months ended March 31, 2008 totaled $3,799,000, and represented an increase of $342,000, or 9.9%, from the same period of 2007. The launching of a market-wide, multimedia image campaign that featured print, radio, direct, billboards, and television advertising contributed to these increases.
Statements contained in this news release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and expectations of management as well as the assumption made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions, including, among others: changes in market interest rates and general and regional economic conditions; changes in government regulations; changes in accounting principles; and the quality or composition of the loan and investment portfolios and other factors that may be described in the Company's quarterly reports on Form 10-Q and its annual report on Form 10-K, each filed with the Securities and Exchange Commission, which are available at the Securities and Exchange Commission's internet website (www.sec.gov) and to which reference is hereby made. Therefore, actual future results may differ significantly from results discussed in the forward-looking statements.
The First National Bank of Litchfield is a community bank operating nine full-service banking offices in Canton, Goshen, Litchfield, Marble Dale, New Milford, Roxbury, Washington and two in Torrington. The Bank maintains a full-service Trust department that offers asset management, custody and estate settlement services to individuals, non-profit and commercial customers. Additionally, the Bank offers non-deposit retail investment products such as mutual funds, annuities and insurance through its relationship with Infinex Investments, Inc. The Bank's subsidiary, First Litchfield Leasing Corporation, provides middle market equipment leasing/financing to the commercial markets of Connecticut and Massachusetts. The Company's website address is www.fnbl.com.
Contact:
Joseph J. Greco, President and CEO
(860) 567-6438
(selected financial data follows)
First Litchfield Financial Corp
Selected Consolidated Financial Data
(Unaudited)
| 2008 | 2007 | |
| Total Assets | $534,026,000 | $493,825,000 |
| Loans, net | 331,348,000 | 300,916,000 |
| Investments | 154,940,000 | 140,716,000 |
| Deposits | 341,572,000 | 343,192,000 |
| Borrowings | 157,750,000 | 119,769,000 |
| Stockholders’ equity | 27,443,000 | 26,749,000 |
| Book value per share | 11.57 | 11.28 |
| Tangible book value per share | 11.57 | 11.28 |
| Leverage ratio | 7.62% | 7.72% |
| Shares outstanding | 2,371,700 | 2,370,423 |
| 2008 | 2007 | |
| Net interest income | $3,577,000 | $3,182,000 |
| Securities (losses), net | 12,000 | (14,000) |
| Total noninterest income | 856,000 | 795,000 |
| Loan and lease loss provision | 75,000 | 105,000 |
| Total noninterest expense | 3,799,000 | 3,457,000 |
| Income before tax | 559,000 | 415,000 |
| Income tax expense | (61,000) | (12,000) |
| Net income | 499,000 | 403,000 |
| Earnings per share (basic) | .21 | .17 |
| Return on average assets | .38% | .32% |
| Return on average equity | 6.91% | 5.90% |
###
First Litchfield Financial Corporation Announces 2007 Earnings
Litchfield, Connecticut, March 31, 2008--First Litchfield Financial Corporation (trading symbol: FLFL.OB) (the “Company”) the holding company for The First National Bank of Litchfield (the “Bank”) reported earnings for the year ending December 31, 2007.
Net income for 2007 totaled $1,947,000, representing an increase of $538,000, or 38% from 2006 earnings of $1,409,000. Basic and diluted net income per share for 2007 were $.82 per share, as compared with $.60 basic and $.59 diluted net income per share, for 2006. Earnings for the fourth quarter of 2007 totaled $285,000, compared to a fourth quarter 2006 loss of $190,000. Fourth quarter basic and diluted net income per share for 2007 were $.12 per share, compared to a loss of $.08 per basic and diluted share for the same period in 2006.
President and CEO Joseph J. Greco stated, "2007 earnings were consistent with our expectations of growing into the infrastructure and initiatives begun over the last two years. We are particularly pleased with first-year results of First Litchfield Leasing Corporation as well as the market growth experienced via our new branches.
I am also pleased to report that our asset quality remains strong. As you know, the financial markets have suffered through some difficult times over the past months as a result of suspect lending practices. Many financial institutions have been forced to significantly curtail their ongoing loan operations. We have adhered to prudent underwriting standards while aggressively pursuing quality loan opportunities within our markets."
Net interest income for 2007 totaled $13,213,000, an increase of 4% or $522,000 from 2006. The increase in net interest income was due to increased margin resulting from a more profitable mix of earning assets in spite of the flat and inverted yield curve experienced during most of 2007. Interest income on average earning assets for 2007 totaled $28,710,000, which was an increase of 8.5%, from 2006 interest income. The increase is the result of a higher level of average earning assets resulting from loan and lease growth. Additionally, the strategy to shift the asset mix from investments to loans, with an emphasis on deposit growth and cost efficient funding helped to increase the net interest margin from 2006. Consistent with that goal, net loans and leases increased $33,575,000 over the year-end 2006 amount. During 2007, the volume of residential mortgage loans and lease receivables increased by $12,475,000 and $8,634,000, respectively, from year-end 2006.
Retail deposits, which excludes brokered deposits, increased $29,722,000 or 12% at December 31, 2007 over the year-end level. This increase is attributed to the Bank’s expansion from the opening of three (3) new branches during 2006 as well as to an increasing emphasis on the development and retention of commercial, municipal and small business accounts. Deposit growth in savings deposits was $11,040,000 due to higher municipal NOW deposits and increased Health Savings Accounts. Money market deposits and time certificates of deposit increased $7,659,000 and $18,573,000, respectively, due to growth in the relationship money market deposit products and promotional certificates of deposit.
Non-interest income for 2007 totaled $3,431,000, up $1,158,000, or 51%, from 2006 non-interest income of $2,273,000. Trust fee income totaled $1,373,000 which represents an increase of $237,000, or 21%, from 2006. This increase is due to fees from the Company’s growth in investment management services. Banking service charges and fees increased 11%, or $133,000, from 2006, as a result of revenue opportunities from deposit accounts and cash management services.
Non-interest expense for 2007 totaled $14,267,000, and represented an increase of $1,064,000, or 8.1%, from 2006. The execution of initiatives begun in 2006 and the full year’s costs related to those initiatives was responsible for the increase in non-interest expense. These initiatives which included increasing the branch franchise, adding key talent to the wealth management and commercial lending areas and the formation of the leasing company, resulted in significantly increased costs in personnel, occupancy, equipment, and other non-interest expenses. Offsetting some of the increase in costs were decreases in advertising costs, reflective of the branch opening promotions in 2006. Computer software and technology consulting costs have been reduced due to the change in the Bank’s core processor and lower costs for exam and audit fees as they relate to regulatory reporting and the Company’s plans for implementing Sarbanes-Oxley initiatives.
Statements contained in this news release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and expectations of management as well as the assumption made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions, including, among others: changes in market interest rates and general and regional economic conditions; changes in government regulations; changes in accounting principles; and the quality or composition of the loan and investment portfolios and other factors that may be described in the Company’s quarterly reports on Form 10-Q and its annual report on Form 10-K, each filed with the Securities and Exchange Commission, which are available at the Securities and Exchange Commission's internet website (www.sec.gov) and to which reference is hereby made. Therefore, actual future results may differ significantly from results discussed in the forward-looking statements.
Litchfield is a community bank operating full-service banking offices in Canton, Goshen, Litchfield, Marble Dale, New Milford, Roxbury, Washington and Torrington, Connecticut. The Bank maintains a full-service Trust department that offers asset management, custody and estate settlement services to individuals, non-profit and commercial customers. Additionally, the Bank offers non-deposit retail investment products such as mutual funds, annuities and insurance through its relationship with Infinex Investments, Inc. The Bank’s subsidiary, First Litchfield Leasing Corporation, provides middle market equipment leasing/financing to the commercial markets of Connecticut and Massachusetts. The Company’s website address is www.fnbl.com.
Contact:
Joseph J. Greco, President and CEO
(860) 567-6438
(selected financial data follows)
First Litchfield Financial Corp
Selected Consolidated Financial Data
(Unaudited)
| 2007 | 2006 | |
| Total Assets | $507,654,000 | $501,232,000 |
| Loans, net | 327,475,000 | 294,942,000 |
| Investments | 129,014,000 | 147,821,000 |
| Deposits | 335,618,000 | 333,429,000 |
| Borrowings | 137,297,000 | 136,510,000 |
| Stockholders’ equity | 28,313,000 | 26,206,000 |
| Book value per share | 11.96 | 11.63 |
| Tangible book value per share | 11.96 | 11.63 |
| Leverage ratio | 8.04% | 7.72% |
| Shares outstanding | 2,368,200 | 2,366,702 |
| 2007 | 2006 | |
| Net interest income | $13,213,000 | $12,691,000 |
| Securities (losses), net | 20,000 | (667,000) |
| Total noninterest income | 3,431,000 | 2,273,000 |
| Loan and lease loss provision | 204,000 | 420,000 |
| Total noninterest expense | 14,267,000 | 13,203,000 |
| Income before tax | 2,173,000 | 1,341,000 |
| Income tax expense | 226,000 | (68,000) |
| Net income | 1,947,000 | 1,409,000 |
| Earnings per share (basic) | .82 | .60 |
| Return on average assets | .39% | .29% |
| Return on average equity | 7.25% | 5.43% |
###
First Litchfield Financial Corporation Announces Nine-Month Earnings
Litchfield, Connecticut, November 13, 2007--First Litchfield Financial Corporation (Trading Symbol: FLFL.OB) (the "Company"), the holding company for The First National Bank of Litchfield (the "Bank"), reported earnings for the three (3) months and nine (9) months ended September 30, 2007. Earnings for the third quarter of 2007 totaled $678,000, which is an increase of 36% from third quarter 2006 earnings of $500,000. Third quarter basic and diluted net income per share for 2007 were $.30 per share, compared to $.22 per basic and diluted share for the same period in 2006.
President and CEO, Joseph J. Greco stated, "Third quarter earnings were the highest in the last six quarters. We are pleased that our net interest income has improved and our Wealth Management division has grown impressively over the past year. "
Net income for the nine months ended September 30, 2007 totaled $1,662,000, representing an increase of $63,000, or 4% from earnings of $1,599,000 for the same period in 2006. Basic and diluted net income per share for the nine months ended September 30, 2007, was $.74 per share, as compared with $.71 basic and diluted net income per share, for the same period in 2006.
Net interest income for the third quarter of 2007 increased $161,000, or 5.1% from the third quarter of 2006. The tax equivalent net interest margin improved from 2.82% in the third quarter of 2006 to 3.02% for the third quarter of 2007. The increase in the net interest income for the third quarter of 2007 was due to increased income resulting from an improved mix of earning assets, and the growth of the loan and lease portfolio. Although average earning assets for the third quarter of 2007 decreased by $10 million from the third quarter of 2006, average loans and leases increased by $33 million, or 12.0% as cash flows from the investment portfolio were reinvested into loans. The increase of $161,000 in net interest income after the provision for loan and lease losses also reflects a $105,000 reduction in provisions to the allowance for loan and lease losses for the quarter ended September 30, 2007 as compared with the third quarter of 2006.
Net interest income for the first nine months of 2007 totaled $9,821,000, which was an increase of $182,000, or 1.9% from the same period in 2006. The increase is the result of a higher level of average earning assets resulting from loan and lease growth. Additionally, the strategy to shift the asset mix from investments to loans, with an emphasis on deposit growth and cost-efficient funding, has helped to slow further margin erosion. Consistent with that goal, net loans and leases increased $19,568,000 over the year-end 2006 amount. During the first nine months of 2007, the volume of residential mortgage loans and in lease receivables increased by $9,058,000 and $9,164,000, respectively, from year-end 2006.
Net interest income after provisions for loan and lease losses amounted to $9,821,000 from the nine month period ended September 30, 2007, as compared with $9,639,000 for the same period in 2006. The reduction of the provision for loan and lease losses during 2007 accounts for the difference.
Retail deposits, which excludes brokered deposits, increased $15,565,000 or 5% over their respective year-end levels. This increase is attributed to the Bank's expansion from the opening of three (3) new branches during 2006 as well as to an increasing emphasis on the development and retention of commercial, municipal and small business accounts. Deposit growth was in savings deposits which increased $12,702,000, due to higher municipal NOW deposits and increased Health Savings Accounts. Money market deposits and time certificates of deposit also increased due to growth in the relationship money market deposit products and promotional certificates of deposit.
Year-to-date noninterest income for the nine months ended September 30, 2007 totaled $2,512,000, up $404,000, or 19%, from noninterest income from the same period in 2006. Trust fee income totaled $1,020,000 which represents an increase of $204,000, or 25%, from the first nine months of 2006. This increase is due to fees from the Company's growth in investment management services. Banking service charges and fees totaled $984,000, increasing 10%, from the previous year due to increased fee income from deposit overdraft and uncollected fees, credit card interchange income and non-customer ATM fees. Other noninterest income increased by $70,000, or 17% resulting from increased revenue from the Bank's retail investment products and income from increases in the cash surrender value of bank owned life insurance. Noninterest income for the third quarter of 2007 totaled $890,000, which is an increase of 21.0% from the $736,000 earned for the third quarter of 2006. This improvement is due to increases in trust income and other non interest income. The Company sold available for sale securities during the third quarter of 2007 for the purpose of increasing future income on the portfolio as well as decreasing the interest rate risk. These sales resulted in a gain of $34,000 for the quarter.
Noninterest expense for the nine months ended September 30, 2007 totaled $10,290,000, and represented an increase of $679,000, or 7.1%, from the same period of 2006. Staffing, occupancy and equipment costs, particularly as they relate to the new branches opened during 2006, and the Company's expanded wealth management and commercial lending focus, resulted in these increases. Offsetting some of the increase in costs were decreases in advertising costs, reflective of the branch opening promotions in 2006. Computer software and technology consulting costs have been reduced due to the change in the Bank's core processor and lower costs for exam and audit fees as they relate to regulatory reporting and the Company's plans for implementing Sarbanes Oxley initiatives. Noninterest expense for the third quarter of 2007 totaled $3,381,000, an increase of $150,000, or 4.6% from the similar period in 2006. Explanations of these variances are similar to the nine-month comparisons.
Statements contained in this news release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and expectations of management as well as the assumption made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions, including, among others: changes in market interest rates and general and regional economic conditions; changes in government regulations; changes in accounting principles; and the quality or composition of the loan and investment portfolios and other factors that may be described in the Company's quarterly reports on Form 10-Q and its annual report on Form 10-K, each filed with the Securities and Exchange Commission, which are available at the Securities and Exchange Commission's internet website (www.sec.gov) and to which reference is hereby made. Therefore, actual future results may differ significantly from results discussed in the forward-looking statements.
The First National Bank of Litchfield is a community bank operating nine full-service banking offices in Canton, Goshen, Litchfield, Marble Dale, New Milford, Roxbury, Washington and Torrington. The Bank maintains a full-service Trust department that offers asset management, custody and estate settlement services to individuals, non-profit and commercial customers. Additionally, the Bank offers non-deposit retail investment products such as mutual funds, annuities and insurance through its relationship with Infinex Investments, Inc. The Bank's subsidiary, First Litchfield Leasing Corporation, provides middle market equipment leasing/financing, to the commercial markets of Connecticut and Massachusetts. The Company's website address is www.fnbl.com.
Contact:
Joseph J. Greco, President and CEO
(860) 567-6438
(selected financial data follows)
First Litchfield Financial Corp
Selected Consolidated Financial Data
(Unaudited)
| 2007 | 2006 | |
| Total Assets | $476,993,000 | $506,927,000 |
| Loans, net | 313,468,000 | 280,511,000 |
| Investments | 125,270,000 | 180,398,000 |
| Deposits | 326,493,000 | 328,195,000 |
| Borrowings | 119,201,000 | 148,965,000 |
| Stockholders’ equity | 27,356,000 | 27,127,000 |
| Book value per share | 12.11 | 12.61 |
| Tangible book value per share | 12.11 | 12.61 |
| Leverage ratio | 8.01% | 7.83% |
| Shares outstanding | 2,259,348 | $2,151,648 |
| 2007 | 2006 | |
| Net interest income | $3,338,000 | $3,177,000 |
| Securities (losses), net | 33,982 | 0 |
| Total noninterest income | 890,000 | 736,000 |
| Loan and lease loss provision | 0 | 105,000 |
| Total noninterest expense | 3,381,000 | 3,231,000 |
| Income before tax | 847,000 | 577,000 |
| Income tax expense | 169,000 | 77,000 |
| Net income | 678,000 | 500,000 |
| Earnings per share (basic) | .30 | .22 |
| Return on average assets | .55% | .40% |
| Return on average equity | 10.28% | 7.91% |
| 2007 | 2006 | |
| Net interest income | $9,821,000 | $9,639,000 |
| Securities gains (losses), net | 20,000 | (18,000) |
| Total noninterest income | 2,512,000 | 2,108,000 |
| Loan and lease loss provision | 105,000 | 315,000 |
| Total noninterest expense | 10,290,000 | 9,611,000 |
| Income before tax | 1,938,000 | 1,821,000 |
| Income tax expense | 275,000 | 222,000 |
| Net income | 1,662,000 | 1,599,000 |
| Earnings per share (basic) | .74 | .71 |
| Return on average assets | .45% | .44% |
| Return on average equity | 8.32% | 8.38% |
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First Litchfield Financial Corporation Announces Stock Repurchase Program
Litchfield, Connecticut, September 21, 2007The Board of Directors of First Litchfield Financial Corporation (Trading Symbol: "FLFL.OB") (the "Corporation"), the parent company of The First National Bank of Litchfield, announced that it has authorized a stock repurchase program to acquire up to an aggregate of 30,000 shares of the outstanding common stock of the Corporation. The program will be dependent upon market conditions, and there is no assurance as to the exact number of shares to be repurchased by the Corporation.
President Greco stated that the Board of Directors has authorized the repurchase program, which is expected to be completed within a year. President Greco explained that the Board of Directors considers the Corporation's common stock to be an attractive investment and that repurchases should help to enhance shareholder value while maintaining the Corporation's designation as a "well capitalized" institution and assuring adequate capital for the current and foreseeable future needs of the Corporation and its subsidiary, The First National Bank of Litchfield.
President Greco indicated that the repurchases generally will be effected through open market purchases, although he did not rule out the possibility of negotiated transactions or other types of repurchases.
Statements contained in this news release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and expectations of management as well as the assumption made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions, including, among others: changes in market interest rates and general and regional economic conditions; changes in government regulations; changes in accounting principles; and the quality or composition of the loan and investment portfolios and other factors that may be described in the Corporation's quarterly reports on Form 10-Q and its annual report on Form 10-K, each filed with the Securities and Exchange Commission, which are available at the Securities and Exchange Commission's internet website (www.sec.gov) and to which reference is hereby made. Therefore, actual future results may differ significantly from results discussed in the forward-looking statements.
The First National Bank of Litchfield is a community bank operating full-service banking offices in Canton, Goshen, Litchfield, Marble Dale, New Milford, Roxbury, Washington and Torrington. The Bank maintains a full-service Trust department that offers asset management, custody and estate settlement services to individuals, non-profit and commercial customers. Additionally, the Bank offers nondeposit retail investment products such as mutual funds, annuities and insurance through its relationship with Infinex Investments, Inc. The Bank's subsidiary, First Litchfield Leasing Corporation, provides middle market equipment leasing/financing, to the commercial markets of Connecticut and Massachusetts. The Company's website address is www.fnbl.com.
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Contact: Carroll A. Pereira, CFO
(860) 567-2674
