Southern Connecticut Bancorp Inc (SSE) filed Quarterly Report for the period ended 2009-09-30.
Southern Connecticut Bancorp, Inc. is a bank holding company and is the sole shareholder of the Bank of Southern Connecticut. The Bank provides a full range of banking services to commercial and consumer customers, primarily concentrated in the New Haven County area of Connecticut. Southern Connecticut Bancorp Inc has a market cap of $9.2 million; its shares were traded at around $3.4 with and P/S ratio of 1.1.
Highlight of Business Operations:
The Company s total assets were $137.9 million at September 30, 2009, an increase of $23 million from December 31, 2008. The increase in total assets was due primarily to growth in the Company s short-term investments and growth in the Bank s loan portfolio, which were funded from deposit growth. Short-term investments increased to $24.8 million from $8.6 million, and net loans receivable increased to $102.4 million from $89.2 million, as of September 30, 2009 and December 31, 2008, respectively. Total deposits increased to $119.5 million as of September 30, 2009 from $94.0 million as of December 31, 2008.
Company s net loan portfolio was $102.4 million at September 30, 2009 versus $89.2 million at December 31, 2008, an increase of $13.2 million. The increase in the loan portfolio for the nine months ended September 30, 2009 was due to a $14.7 million increase in outstanding loans partially offset by a $1.5 million increase in the allowance for loan losses, explained in more detail under Allowance for Loan Losses below. Management believes that loan growth will continue during the fourth quarter of 2009. The Bank s loans are made to borrowers primarily in the New Haven market area. The Company s loan to total asset ratio is 74.2% and 77.7% and its loan to total deposit ratio is 85.7% and 95.0% at September 30, 2009 and December 31, 2008, respectively. The Bank currently has a large number of loans pending closing and if these loans are closed, the ratios of loans receivable to total assets and total deposits are expected to increase.
Total deposits were $119.5 million at September 30, 2009, an increase of $25.5 million (27.1%) in comparison to total deposits at December 31, 2008 of $94.0 million. Non-interest bearing deposits were $29.5 million at September 30, 2009, an increase of $1.3 million (4.7%) from $28.2 million at December 31, 2008. The balance of interest bearing checking accounts can fluctuate as much as 5% to 10% on a daily basis. Total interest bearing checking, money market and savings deposits increased $3.5 million, or 10.4%, to $37.3 million at September 30, 2009 from $33.8 million at December 31, 2008. Time deposits increased to $52.7 million at September 30, 2009 from $32.0 million at December 31, 2008, a $20.7 million (64.7%) increase. Included in time deposits at September 30, 2009 is $15.9 million in brokered deposits, which includes the Company s placement of $1.3 million in customer deposits and purchase of $5.6 million in brokered certificates of deposit
The Company s interest earning assets averaged $131.0 million during the three months ended September 30, 2009 compared to $101.7 million for the same period in 2008, an increase of $29.3 million (or 28.8%). The net increase of $29.3 million in the average interest earning assets was comprised of increases in average balances of loans of $17.1 million and short-term and other investments of $20.1 million, which were partially offset by decreases in average balances of federal funds sold of $5.8 million and investments of $2.1 million.
For the nine months ended September 30, 2009, net interest income was $3,023,757 versus $3,572,597 for the same period in 2008. The $548,840 (or 15.4%) decrease was the result of a $597,767 decrease in interest income and a $48,927 decrease in interest expense. This net decrease was primarily the result of decreases in rates, partially offset by increases in volume, on both interest earning assets and interest bearing liabilities.
The Company s interest earning assets averaged $119.9 million during the nine months ended September 30, 2009 compared to $106.0 million for the same period in 2008, an increase of $13.9 million (or 13.0%). The net increase in the average interest earning assets of $13.8 million was comprised of increases in average balances of loans of $11.8 million and short-term and other investments of $13.4 million, partially offset by decreases in average balances of federal funds sold of $10.0 million and investments of $1.4 million.
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