NATCHEZ — Britton & Koontz Capital Corporation reports net income for the year ended Dec. 31, 2011, of $394,000, or $.18 per basic and diluted share, compared to $1.9 million, or $.90 per basic and diluted share, for 2010.
Net income for the quarter ended Dec. 31, 2011, was $311,000, or $.15 per basic and diluted share, compared to $665,000, or $.31 per basic and diluted share, for the fourth quarter of 2010.
The returns on average assets and equity for the year were .11 percent and 1.00 percent, respectively, compared to .51 percent and 4.76 percent, respectively, for same period in 2010.
Net interest income for the three and 12 months decreased $630,000 and $1.7 million, respectively, over the same periods in 2010. The decrease for both periods is primarily due to the shift in longer-term, higher-yielding loans and investment securities to cash. Factors contributing to the shift were lower volumes and returns on investment securities due to the lower interest rate environment during 2011, which made profitable reinvestment of cash flows back into the market difficult and continued weak loan demand in all markets. In both cases, cash flow was either used to pay down short-term debt or build up deposits at the Federal Reserve Bank.
As a result of these changes, asset yields declined twice as fast as funding costs, negatively impacting net interest income.
Since Dec. 31, 2010, total assets decreased $9.3 million to $366.1 million at Dec. 31, 2011. The change is due primarily to decreases in total investment securities of $19.9 million, a decrease in net loans of $31.5 million, an increase in cash and due from banks of $42.8 million and an increase in other real estate of $398,000.
Total deposits increased $4.5 million to $263.1 million.