SOURCE: Christiana Bank & Trust Company

January 27, 2006 13:49 ET

Financial Data Addendum to Christiana Bank's Earnings Release of January 26, 2006

GREENVILLE, DE -- (MARKET WIRE) -- January 27, 2006 -- Christiana Bank and Trust Company (OTC BB: CBTD) (the "Bank") reported net income of $1.5 million for 2005, an increase of $566 thousand, or 59%, from $966 thousand in 2004. This is the highest level of net income in the history of the Bank. Net income for the fourth quarter of 2005 was $512 thousand, an increase of $144 thousand, or 39%, from $368 thousand for the same period in 2004. Net income for the third quarter of 2005 was $385 thousand.

Net income per diluted share was $1.13 for 2005. This was an increase of 53% from $0.74 reported for 2004. For the fourth quarter of 2005, net income per diluted share was $0.37, an increase of $0.08, or 28%, from the same period in 2004. The Bank reported $0.29 in net income per diluted share for the third quarter of 2005. All per share data have been restated for the 5% stock dividend declared on October 20, 2005, and distributed November 30, 2005.

Zissimos A. Frangopoulos, President and CEO, stated, "We are very pleased with the 2005 results. The record earnings that we reported and the continuing growth of our business reflect the success of our business strategy to diversify and grow both the banking and trust businesses, and of our financial strategy that focuses on the growth of revenues while instilling and maintaining expense control in the conduct of the business."

FINANCIAL CONDITION

The Bank ended 2005 with total assets of $166.1 million showing year-over-year growth of 12% from $147.7 million on December 31, 2004. Total assets at September 30, 2005, were $154.0 million.

Loans, net of allowance for loan losses, were $116.0 million at December 31, 2005, as compared to $101.5 million at December 31, 2004 -- a growth of 14%. Net loans were $113.9 million at September 30, 2005.

Total deposits at December 31, 2005, were $148.3 million as compared to $122.1 million at December 31, 2004 -- a year-over-year growth of 21%. Total deposits were $132.4 million at September 30, 2005.

EARNINGS

Relative to 2004, earnings in 2005 reflect growth in total revenues (consisting of net interest income after provision for loan losses plus other income) at a faster rate than expenses -- 26% and 18%, respectively. The growth in revenues was primarily due to strength in net interest income as well as trust revenues. The growth in expenses reflects increased expenses related to the growing volume of business. Additionally, 2005 non-interest expense includes prepayment fees of $417 thousand incurred for the early repayment of $10 million in fixed-rate, long-term debt and a reduction of $67 thousand in trust operating expense representing a refund for certain charges that had been erroneously assessed to and paid by the Bank. There were no prepayment fees and no refunds affecting trust operating expenses in 2004.

The quarterly comparison reflects the same pattern. Growth in revenues during the fourth quarter of 2005, relative to the same period last year, was 20%, while expenses grew by 12%.

Compared to the third quarter of 2005, fourth quarter revenues increased by 10% and non-interest expense increased by 1%. Prepayment fees included in the 2005 fourth quarter expenses were $42 thousand compared to $130 thousand in the third quarter.

Net interest income

Net interest income for 2005 was $6.0 million as compared to $4.5 million in 2004, an increase of 35%. The increase in the net interest income primarily reflects increased margins and the growth in loans. The net interest margin for 2005 was 4.40%, compared to 3.65% for 2004. During 2005, average net loans were $108.1 million compared to $99.4 million in 2004, a growth of 9%.

For the fourth quarter of 2005, net interest income was $1.7 million, compared to $1.3 million in the fourth quarter 2004 -- a growth of 33%. For the third quarter 2005, net interest income was $1.6 million. The net interest margin for the fourth quarter 2005 was 4.73%, compared to 3.85% in the same period in 2004. In the third quarter 2005, the net interest margin was 4.52%. Average net loans in the fourth quarter 2005 were $113.4 million, compared to $100.5 million in the same period a year earlier -- a growth of 13%. In the third quarter 2005, average net loans were $112.1 million.

The improvement in the net interest margin reflects interest rates on earning assets rising faster than the interest rates on deposits and other interest-bearing liabilities. In addition, the margin benefited by the repayment of fixed-rate, long-term debt and replacement by lower-cost funding sources. As the Federal Reserve Board has implemented a series of rate increases starting in the summer of 2004, the Bank has benefited from having a larger amount of assets than liabilities that reprice with changing interest rates. This excess of rate-sensitive assets over rate-sensitive liabilities is a major factor contributing to the improvement of the net interest margin. If this interest rate re-pricing profile were to remain unchanged, the net interest margin would contract in a declining rate environment.

Provision for loan losses

The provision to the allowance for loan losses for 2005 totaled $118 thousand, compared to $127 thousand provided in 2004.

During the fourth quarter of 2005, the Bank provided $17 thousand to the allowance for possible loan losses, compared to $35 thousand in the third quarter of 2005 and no provision in the fourth quarter of 2004.

Other income

For 2005, trust revenues were $3.3 million, with $912 thousand earned during the fourth quarter, compared to $2.8 million in 2004, of which $869 thousand came in the fourth quarter. Assets under administration totaled $1.8 billion at December 31, 2005, September 30, 2005, and December 31, 2004. Assets under management were $511.8 million at December 31, 2005, as compared to $500.0 million at September 30, 2005, and $666.7 million at December 31, 2004.

For 2005, there were no gains or losses on the sale of securities, while gains on sales of securities totaled $31 thousand in 2004, none of which were realized in the fourth quarter of 2004.

The remaining other income for 2005 was $350 thousand, compared to $359 thousand in 2004. For the fourth quarter of 2005, it totaled $83 thousand, compared to $85 thousand in the fourth quarter 2004. Other income was $83 thousand in the third quarter 2005. This income largely reflects fees charged for various banking services and earnings on bank-owned life insurance.

Total revenues in 2005 amounted to $9.5 million, an increase of $2.0 million or 26% over the $7.5 million recorded in 2004. Total revenues for the fourth quarter of 2005 amounted to $2.7 million compared to $2.2 million in the fourth quarter 2004 -- an increase of 20%. Total revenues for the third quarter 2005 were $2.4 million.

Non-interest expense

Personnel expense for 2005 was $3.9 million compared to $3.3 million in 2004, an increase of 17%. In the fourth quarter of 2005, personnel expense was $1.1 million as compared to $930 thousand for the fourth quarter 2004. In the third quarter 2005, personnel expense totaled $990 thousand. The Bank's staff consisted of 41 full-time-equivalent employees at December 31, 2005, as compared to 40 at December 31, 2004. The total at September 30, 2005 was 42.

Occupancy expense for 2005 amounted to $392 thousand, materially unchanged from 2004. In the fourth quarter of 2005, occupancy expense was $93 thousand compared to $97 thousand for the fourth quarter 2004. In the third quarter of 2005, occupancy expense totaled $101 thousand.

Trust operating expense for 2005 was $383 thousand, compared to $526 thousand in 2004. Trust operating expense totaled $49 thousand in the fourth quarter of 2005, compared to $179 thousand in the fourth quarter of 2004 and $100 thousand in the third quarter of 2005. The 2005 expense includes the benefit of a $67 thousand refund received in the fourth quarter for certain charges that had been erroneously assessed to and paid by the Bank. Additionally, in the fourth quarter of 2004, the Bank incurred certain expenses amounting to $64 thousand directly related to the asset management business which were not repeated in 2005.

Other expense totaled $2.5 million for 2005 compared to $1.8 million in 2004. For the fourth quarter 2005, other expense totaled $620 thousand, compared to $451 thousand for the fourth quarter 2004 and $634 thousand for the third quarter of 2005. For the full year 2005, the fourth quarter of 2005, and the third quarter of 2005, other expense includes $417 thousand, $42 thousand and $130 thousand respectively in prepayment fees for the early redemption of certain fixed-rate long-term borrowings. There were no prepayment fees in 2004.

Total non-interest expense for 2005 was $7.1 million, compared to $6.1 million in 2004. During 2005, total non-interest expense grew by 18% as compared to a growth of 10% in 2004. In the fourth quarter 2005, total non-interest expense amounted to $1.9 million, compared to $1.7 million in the fourth quarter of 2004 and $1.8 million in the third quarter of 2005.

ASSET QUALITY

There were no non-performing assets at December 31, 2005, or at December 31, 2004. No loans were charged off during 2005 or during 2004.

The allowance for loan losses was $937 thousand, or 0.80% of total loans at December 31, 2005; $920 thousand, or 0.80% of total loans at September 30, 2005; and $819 thousand, or 0.80% of total loans at December 31, 2004.

CAPITAL

Stockholders' equity totaled $16.0 million at December 31, 2005, compared to $15.5 million at September 30, 2005, and $14.4 million at December 31, 2004. The increase in stockholders' equity during 2005 primarily reflects the earnings during the period, plus the issuance of shares to cover the Bank's contribution of $131 thousand to its 401(k) plan, and additional capital of $107 thousand from the exercise of options, offset by an increase in unrealized losses on securities classified as available-for-sale of $178 thousand net of applicable federal tax.

All the regulatory capital ratios of the Bank are in excess of the "well-capitalized" threshold.

THE COMPANY

Christiana Bank and Trust Company, headquartered in Greenville, Delaware, is listed on the OTC Bulletin Board under the symbol "CBTD." The Bank provides commercial banking as well as trust and asset management services from locations in Greenville and Wilmington, Delaware. In addition, Christiana Corporate Services, Inc., a wholly owned subsidiary, provides commercial domicile services in Delaware and Nevada and Christiana Trust Company LLC, a wholly-owned non-depository trust company, provides commercial domicile and trust services in Nevada.

Forward-looking Statements

This news release contains forward-looking statements. Such statements are subject to certain factors that may cause the Bank's results to vary from those expected. These factors include changing economic and financial market conditions, competition, ability to execute the Bank's business plan, items already mentioned in this press release and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of this date. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect events and circumstances that arise after the date of this release.

                                          CHRISTIANA BANK AND TRUST CO
                                      SELECTED CONSOLIDATED FINANCIAL DATA
                                                 (unaudited)


                                      For the three months ended
                              Dec-05   Sep-05   Jun-05   Mar-05   Dec-04
Income Statement

Total interest income        $ 2,394  $ 2,228  $ 1,936  $ 1,792  $ 1,719
Total interest expense           710      617      526      483      450
                             -------  -------  -------  -------  -------
  Net interest income          1,684    1,611    1,410    1,309    1,269
Provision for loan losses         17       35       56       10        -
                             -------  -------  -------  -------  -------
Net interest income
 after provision               1,667    1,576    1,354    1,299    1,269

Trust fees                       912      756      803      800      869
Service fees and
 other income                     83       83       87       97       85
Gain on sale of securities         -        -        -        -        -
                             -------  -------  -------  -------  -------
  Total non-interest income      995      839      890      897      954

Total revenues                 2,662    2,415    2,244    2,196    2,223
                             -------  -------  -------  -------  -------
Personnel expenses             1,090      990      898      907      930
Occupancy expense                 93      101       97      101       97
Trust operating expense           49      100      119      115      179
Other expense                    620      634      552      670      451
                             -------  -------  -------  -------  -------
  Total non-interest expense   1,852    1,825    1,666    1,793    1,657

Income before taxes              810      590      578      403      566
Federal and state
 income taxes                    298      205      204      142      198
                             -------  -------  -------  -------  -------
Net income                   $   512  $   385  $   374  $   261  $   368
                             =======  =======  =======  =======  =======




Income Statement               Year to Date
                              Dec-05   Dec-04

Total interest income        $ 8,350  $ 6,181
Total interest expense         2,336    1,715
                             -------  -------
  Net interest income          6,014    4,466
Provision for loan losses        118      127
                             -------  -------
Net interest income            5,896    4,339
 after provision

Trust fees                     3,271    2,810
Service fees and other income    350      359
Gain on sale of securities         -       31
                             -------  -------
  Total non-interest income    3,621    3,200

Total revenues                 9,517    7,539
                             -------  -------
Personnel expenses             3,885    3,325
Occupancy expense                392      391
Trust operating expense          383      526
Other expense                  2,476    1,817
                             -------  -------
  Total non-interest expense   7,136    6,059

Income before taxes            2,381    1,480
Federal and state                849      514
 income taxes                -------  -------

Net income                   $ 1,532  $   966
                             =======  =======

Certain reclasses have been made to conform prior periods to current
period presentation.
                        CHRISTIANA BANK AND TRUST CO
                      SELECTED CONSOLIDATED FINANCIAL DATA
                                (unaudited)
                                  (000)


                               Dec-05   Sep-05   Jun-05   Mar-05   Dec-04
Balance Sheet

Cash and due from banks       $ 20,776 $ 11,111 $ 12,218 $ 16,020 $ 19,834
Investment securities           21,260   20,728   20,053   17,739   18,571

Loans (net of unearned
 income)                       116,974  114,826  110,578  103,539  102,305
     Allowance for loan
      losses                       937      920      885      829      819
                              -------- -------- -------- -------- --------
Net loans                      116,037  113,906  109,693  102,710  101,486

Bank premises and equipment
 - net                           3,095    3,123    3,162    3,201    3,250
Other assets                     4,918    5,141    5,154    5,161    4,574
                              -------- -------- -------- -------- --------

Total assets                  $166,086 $154,009 $150,280 $144,831 $147,715
                              ======== ======== ======== ======== ========


Non-interest bearing deposits $ 40,968 $ 51,441 $ 44,040 $ 44,093 $ 32,114
Savings and interest bearing
 demand                         80,805   61,856   60,932   56,078   66,827
Time deposits                   26,530   19,134   22,184   21,198   23,180
                              -------- -------- -------- -------- --------
     Total deposits            148,303  132,431  127,156  121,369  122,121

Borrowings                           -    5,000    7,000    8,000   10,000
Other liabilities                1,799    1,124    1,061      928    1,200
                              -------- -------- -------- -------- --------

Total liabilities              150,102  138,555  135,217  130,297  133,321

Total stockholders' equity      15,984   15,454   15,063   14,534   14,394
                              -------- -------- -------- -------- --------

Total liabilities and
 stockholders' equity         $166,086 $154,009 $150,280 $144,831 $147,715
                              ======== ======== ======== ======== ========

Certain reclasses have been made to conform prior periods to current
period presentation.
                      CHRISTIANA BANK AND TRUST CO
                  SELECTED CONSOLIDATED FINANCIAL DATA
                              (unaudited)

Dollar amounts in thousands except share and per share data

                                     For and at the Three Months Ended
                       Dec-05     Sep-05     Jun-05     Mar-05     Dec-04
Share Data  *
Book value per share
 (period end)        $   12.17  $   11.86  $   11.59  $   11.21  $   11.12
Earnings per share
 (basic)             $    0.39  $    0.30  $    0.29  $    0.20  $    0.29
Earnings per share
 (diluted)           $    0.37  $    0.29  $    0.29  $    0.20  $    0.29
Basic shares         1,310,432  1,303,032  1,299,171  1,295,697  1,291,802
Diluted shares       1,403,780  1,350,849  1,319,307  1,314,345  1,306,811


Selected Averages
Average Gross Loans  $ 114,343  $ 113,025  $ 106,941  $ 101,385  $ 101,350
Average total
 deposits            $ 123,990  $ 124,161  $ 111,229  $ 117,463  $ 115,586
Average earning
 assets (1)          $ 141,307  $ 141,330  $ 129,993  $ 133,883  $ 130,573

Selected Performance
 Ratios
Return on average
 assets                   1.36%      1.02%      1.08%      0.74%      1.04%
Return on average
 equity                  12.97%     10.00%     10.11%      7.30%     10.28%
Net interest margin       4.73%      4.52%      4.35%      3.96%      3.85%
Non-interest income
 as % of revenue         37.38%     34.75%     39.66%     40.84%     42.98%
Non-interest income
 as % of average assets   2.67%      2.25%      2.57%      2.52%      2.71%
Non-interest expense
 as % of average assets   4.97%      4.90%      4.82%      5.04%      4.71%

Asset Quality
Net chargeoffs       $       -  $       -  $       -  $       -  $       -
Non-performing loans $       -  $       -  $       -  $       -  $       -
Allowance for loan
 losses to total
 loans (period end)       0.80%      0.80%      0.80%      0.80%      0.80%
Non-performing loans
 to total loans
 (period end)             0.00%      0.00%      0.00%      0.00%      0.00%

Capital
Stockholders' equity
 to total assets
 (period end)             9.62%     10.03%     10.02%     10.04%      9.74%
Tier 1 leverage
 ratio                   10.91%     10.49%     10.98%     10.37%     10.29%
Tier 1 capital to
 risk-weighted assets    11.73%     11.70%     11.82%     12.23%     12.19%
Total capital to
 risk-weighted assets    12.40%     12.39%     12.51%     12.92%     12.88%

(1) Earning assets include loan balances before loan loss reserve and AFS
    investments before unrealized holding gains or losses.

Certain reclasses have been made to conform prior periods to current period
presentation.

 *  Adjusted for 5% stock Dividend declared October 20, 2005



                      CHRISTIANA BANK AND TRUST CO
                  SELECTED CONSOLIDATED FINANCIAL DATA
                              (unaudited)

Dollar amounts in thousands except share and per share data

                                               Year to Date
                                             Dec-05     Dec-04
Share Data  *
Book value per share
 (period end)                              $   12.17  $   11.12
Earnings per share
 (basic)                                   $    1.18  $    0.76
Earnings per share
 (diluted)                                 $    1.13  $    0.74
Basic shares                               1,302,532  1,272,881
Diluted shares                             1,356,405  1,297,447


Selected Averages
Average Gross Loans                        $ 108,970  $ 100,194
Average total
 deposits                                  $ 119,242  $ 107,032
Average earning
 assets (1)                                $ 136,661  $ 122,484

Selected Performance
 Ratios
Return on average
 assets                                         1.06%      0.72%
Return on average
 equity                                        10.16%      7.11%
Net interest margin                             4.40%      3.65%
Non-interest income
 as % of revenue                               38.05%     42.46%
Non-interest income
 as % of average assets                         2.50%      2.38%
Non-interest expense
 as % of average assets                         4.93%      4.50%

Asset Quality
Net chargeoffs                             $       -  $       -
Non-performing loans                       $       -  $       -
Allowance for loan
 losses to total
 loans (period end)                             0.80%      0.80%
Non-performing loans
 to total loans
 (period end)                                   0.00%      0.00%

Capital
Stockholders' equity
 to total assets
 (period end)                                   9.62%      9.74%
Tier 1 leverage
 ratio                                         10.91%     10.29%
Tier 1 capital to
 risk-weighted assets                          11.73%     12.19%
Total capital to
 risk-weighted assets                          12.40%     12.88%

(1) Earning assets include loan balances before loan loss reserve and AFS
    investments before unrealized holding gains or losses.

Certain reclasses have been made to conform prior periods to current
period presentation.

* Adjusted for 5% stock Dividend declared October 20, 2005

Contact Information

  • Christiana Bank
    Chris J. Cusatis
    SR VP/CFO
    Phone : (302) 421-5800