SBT Bancorp Inc (OTCMKTS:SBTB) reported net income of $343,000 in 1Q2015 compared to a net income of $78,000 from the same quarter, a year ago. The growth in net income was mainly due to a decrease in noninterest expense and increase in mortgage banking activities. The increase in net income was partially offset by a decline in other service charges and fees.

The management speaks

Martin J. Geitz, the President and CEO, said that the bank posted strong loan growth as compared to prior year quarter. Commercial banking continues to expand, with commercial loan balances surging by $11.0 million since March 31, 2014. The mortgage unit has recorded some improvement in its overall performance during 1Q2015. The management experienced a considerable increase in applications and concluded purchased mortgages in 1Q2015. The introduction of the wholesale mortgage origination source has accounted for incremental loan volume to SBT Bancorp’s retail origination platform.

The highlights

SBT Bancorp reported that net loans surged 5% to $13.9 million in 1Q2015. The total deposits declined $11.0 million led by reductions in CD’s and Money Market Accounts. These were partially offset by increase in Checking and Savings Accounts. The total loan delinquency dropped to 1.12% of total loans compared to 1.33% in same period last year. The bank said that overall loan delinquency stays positive to peers.

The loan portfolio

SBT Bancorp Inc (OTCMKTS:SBTB) reported that the loan outstanding surged 5% to $292 million from a year ago. The commercial loans increased by 13.5% while residential mortgage loans declined by 1.0%. The consumer loans showed a good growth of 9.1%, due to surge in purchased auto loans. Overall, the loan portfolio remains healthy. The total deposits came at $361 million, a decline of $11.0 million from 1Q2014 due to a drop in time deposits and a decline in low cost Demand, NOW and Savings deposits.