SOURCE: New Hampshire Thrift Bancshares

April 13, 2012 14:00 ET

New Hampshire Thrift Bancshares, Inc. Announces Earnings for First Quarter

Performance Reflects Loan and Deposit Growth

NEWPORT, NH--(Marketwire - Apr 13, 2012) - New Hampshire Thrift Bancshares, Inc. (the "Company") (NASDAQ: NHTB), the holding company for Lake Sunapee Bank, fsb (the "Bank"), today reported consolidated net income for the quarter ended March 31, 2012 of $2.1 million, or $0.31 per common share, assuming dilution, compared to $2.0 million, or $0.33 per common share, assuming dilution, for same period in 2011, an increase of $57 thousand, or 2.81%.

Financial Highlights

  • Total assets increased $52.5 million, or 5.04%, to $1.1 billion at March 31, 2012 from $1.0 billion at December 31, 2011.

  • Net loans increased $22.2 million, or 3.10%, to $737.1 million at March 31, 2012 from $715.0 million at December 31, 2011.

  • For the three months ended March 31, 2012, the Company originated $72.7 million in loans, compared to $69.0 million for the same period in 2011.

  • The Company's loan servicing portfolio was $357.2 million at March 31, 2012 compared to $365.8 million at December 31, 2011.

  • Total deposits increased $7.5 million, or 0.94%, to $810.5 million at March 31, 2012 from $803.0 million at December 31, 2011.

  • Net interest and dividend income for the three months ended March 31, 2012 was $7.1 million compared to $7.2 million for the same period in 2011.

  • The Company's returns on average assets and average equity for the three months ended March 31, 2012 were 0.77% and 7.27%, respectively, compared to 0.80% and 8.91%, respectively, for the same period in 2011.

  • As a percentage of total loans, non-performing loans decreased from 2.47% at December 31, 2011 to 2.39% at March 31, 2012.

Earnings Summary

Net income was $2.1 million for the quarter ended March 31, 2012, an increase over the same period in 2011. During the quarter ended March 31, 2012, net interest and dividend income showed a slight decline of $94 thousand, or 1.31%, compared to the same period in 2011. The provision for loan losses decreased $88 thousand to $155 thousand for the quarter ended March 31, 2012 compared to $243 thousand for the same period in 2011. Noninterest income increased $973 thousand, or 41.14%, to $3.3 million for the quarter ended March 31, 2012 compared to $2.4 million for the same period in 2011. This increase includes increases of $26 thousand in customer service fees, $26 thousand in net gain on sales of loans, $711 thousand in net gain on sales and calls of securities, $22 thousand in rental income, $409 thousand in insurance commission income and $9 thousand in bank-owned life insurance income partially offset by decreases of $45 thousand in income from equity interest in Charter Holding Corp. and $185 thousand in losses on other real estate and property owned as the Bank recognized a write-down of $190 thousand on a commercial property owned during the first quarter of 2012. Noninterest expense increased $888 thousand, or 13.80%, to $7.3 million for the quarter ended March 31, 2012 compared to $6.4 million for the same period in 2011. This increase includes $502 thousand, or a 15.30% increase in salaries and employee benefits which includes the additional salary associated with the employees of our recent acquisition, McCrillis & Eldredge Insurance, Inc., additional staffing within lending and compliance, the impact of ordinary cost-of-living increases during the year, and an impairment expense on our mortgage servicing rights of $224 thousand during the first quarter of 2012 which is included in other expenses compared to a benefit of $11 thousand during the same period in 2011.

Net income available to common stockholders was $1.8 million for the three months ended March 31, 2012 compared to $1.9 million for the same period in 2011. During 2011, the Company received $20.0 million from the U.S. Department of Treasury's ("Treasury") Small Business Lending Fund (SBLF) which was used in part to payoff $10.0 million from Treasury's Capital Purchase Program. The dividend related to these programs reduces net income available to common stockholders. During the first quarter of 2011, the $10.0 million investment resulted in a reduction in net income available to common stockholders of approximately $129 thousand as compared to the $20.0 million investment in 2012 resulting in a reduction in net income available to common stockholders of approximately $250 thousand. The dividend rate on the SBLF is based on growth within identified small business lending categories, and as the Bank grows lending in these categories, the rate will decrease resulting in reduced impact on net income available to common stockholders.

Balance Sheet Summary

Total assets were $1.1 billion at March 31, 2012, compared to $1.0 billion at December 31, 2011, an increase of 5.04%. Securities available-for-sale and FHLB stock were $211.7 million at March 31, 2012 down from $218.0 million at December 31, 2011. Net loans held in portfolio increased $22.2 million, or 3.10%, to $737.1 million at March 31, 2012, from $715.0 million at December 31, 2011. The allowance for loan losses was $9.0 million at March 31, 2012, compared to $9.1 million at December 31, 2011. The change in the allowance for loan losses is the net effect of provisions of $155 thousand, charge-offs of $274 thousand, and recoveries of $74 thousand. As a percentage of total loans, non-performing loans decreased from 2.47% at December 31, 2011 to 2.39% at March 31, 2012, primarily due to the increase in the loan base as the dollar value of non-performing loans remained relatively unchanged. Total loan production for the three months ended March 31, 2012 was $72.7 million compared to $69.0 million for the three months ended March 31, 2011.

Total deposits increased $7.5 million, or 0.94%, to $810.6 million at March 31, 2012 from $803.0 million at December 31, 2011. Within deposits, savings and money market accounts increased $16.4 million, transaction accounts decreased $2.4 million, and time deposits decreased $6.5 million. Advances from the Federal Home Loan Bank increased $40.0 million, or 49.38%, to $121.0 million at March 31, 2012 from $81.0 million at December 31, 2011.

Stockholders' equity of $108.7 million resulted in a book value of $15.20 per common share at March 31, 2012 based on 5,835,360 shares of common stock outstanding, equal to December 31, 2011. As previously announced, a regular quarterly dividend of $0.13 per share is payable on April 30, 2012 to stockholders of record as of April 23, 2012. The Bank remains well-capitalized with a Tier I (Core) Capital ratio of 9.05% at March 31, 2012.

Other Events

On February 15, 2012, the Company repurchased in its entirety the warrant (the "Warrant") previously issued to Treasury on January 16, 2009, in connection with the Company's participation in Treasury's Capital Purchase Program. The Company repurchased the Warrant for $737,100.

About New Hampshire Thrift Bancshares, Inc.

New Hampshire Thrift Bancshares, Inc. is the parent company of Lake Sunapee Bank, fsb, a federally-chartered stock savings bank which provides a wide range of banking and financial services and McCrillis & Eldredge Insurance, Inc., a full-line independent insurance agency which offers a complete range of commercial insurance services and consumer products. These wholly-owned subsidiaries operate through 30 offices strategically located within the greater Dartmouth-Lake Sunapee-Kearsarge and Monadnock regions of west-central New Hampshire and central Vermont. New Hampshire Thrift Bancshares, Inc. has total assets of approximately $1.1 billion.

Forward-Looking Statements

The Company wishes to caution readers not to place undue reliance on any such forward-looking statements contained in this press release, which speak only as of the date made. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors discussed under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2011, and in subsequent filings with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent our views as of the date of this release. The Company and the Bank do not undertake and specifically decline any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

New Hampshire Thrift Bancshares, Inc.
Selected Financial Highlights
For the three months ended March 31, 2012 2011
(Dollars in thousands except for per share data)
Net Income $ 2,082 $ 2,025
Per Share Data:
Basic Earnings per common share $ 0.31 $ 0.33
Diluted Earnings per common share (1) 0.31 0.33
Dividends Paid, common 0.13 0.13
Dividend Payout Ratio 41.94 % 39.39 %
Return on Average Assets 0.77 % 0.80 %
Return on Average Equity 7.27 % 8.91 %
As of March 31, 2012 December 31, 2011
(Dollars in thousands except for per share data)
Total Assets $ 1,094,327 $ 1,041,819
Total Securities (2) 211,679 217,933
Loans, Net 737,137 714,952
Total Deposits 810,564 803,023
Federal Home Loan Bank Advances 120,970 80,967
Stockholders' Equity 108,744 108,660
Book Value per Common Share $ 15.20 $ 15.20
Shares Outstanding 5,835,360 5,832,360
Tier I (Core) Capital 9.05 % 9.58 %
Number of Locations 30 30
(1) Diluted earnings per share are calculated using the weighted-average number of shares outstanding for the period, including common stock equivalents, as appropriate.
(2) Includes available-for-sale securities shown at fair value and Federal Home Loan Bank stock at cost.
New Hampshire Thrift Bancshares, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
As of March 31, 2012 December 31, 2011
ASSETS (unaudited)
Cash and due from banks $ 12,090 $ 21,841
Federal Home Loan Bank overnight deposit 26,000 2,899
Total cash and cash equivalents 38,090 24,740
Securities available-for-sale 204,183 210,318
Federal Home Loan Bank stock 7,496 7,615
Loans held-for-sale 4,387 3,434
Loans receivable, net 737,137 714,952
Accrued interest receivable 2,531 2,669
Bank premises and equipment, net 16,677 16,450
Investments in real estate 3,427 3,451
Other real estate owned 760 1,344
Goodwill and intangible assets 30,238 30,352
Investment in partially owned Charter Holding Corp., at equity 5,020 4,895
Bank-owned life insurance 18,461 13,347
Due from brokers, net 18,121 -
Other assets 7,799 8,252
Total assets $ 1,094,327 $ 1,041,819
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing $ 61,783 $ 64,356
Interest-bearing 748,781 738,667
Total deposits 810,564 803,023
Federal Home Loan Bank advances 120,970 80,967
Other borrowings 272 543
Securities sold under agreements to repurchase 18,175 15,514
Subordinated debentures 20,620 20,620
Accrued expenses and other liabilities 15,012 12,492
Total liabilities 985,613 933,159
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value per share: 2,500,000 shares authorized:
Series B, non-cumulative perpetual, 20,000 shares issued and outstanding at March 31, 2012 and at December 31, 2011, liquidation value $1,000 per share - -
Common stock, $.01 par value, per share: 10,000,000 shares authorized, 6,295,639 shares issued and 5,835,360 shares outstanding as of March 31, 2012 and 6,292,639 shares issued and 5,832,360 shares outstanding as of December 31, 2011 63 63
Warrants - 85
Paid-in capital 66,036 66,658
Retained earnings 50,918 49,892
Accumulated other comprehensive loss (1,152 ) (887 )
Treasury stock, at cost, 460,279 shares as of March 31, 2012 and December 31, 2011 (7,151 ) (7,151 )
Total stockholders' equity 108,714 108,660
Total liabilities and stockholders' equity $ 1,094,327 $ 1,041,819
New Hampshire Thrift Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)
For the Three months Ended March 31,
(Dollars in thousands except for per share data) 2012 2011
INTEREST AND DIVIDEND INCOME
Interest and fees on loans $ 7,707 $ 7,965
Interest and dividends on debt investments
Taxable 1,144 1,233
Dividends 17 10
Other 166 235
Total interest and dividend income 9,034 9,443
INTEREST EXPENSE
Interest on deposits 1,187 1,503
Interest on advances and other borrowed money 739 738
Total interest expense 1,926 2,241
Net interest and dividend income 7,108 7,202
PROVISION FOR LOAN LOSSES 155 243
Net interest and dividend income after provision for loan losses 6,953 6,959
OTHER INCOME
Customer service fees 1,203 1,177
Net gain on sales and calls of securities 1,151 440
Net gain on sales of loans 346 320
Net (loss) gain on other real estate and property owned (181 ) 4
Rental income 194 172
Realized gain in Charter Holding Corp. 111 156
Insurance commission income 410 1
Bank owned life insurance income 104 95
Total noninterest income 3,338 2,365
Consolidated Statements of Income (continued)
For the Three months Ended March 31,
(Dollars in thousands except for per share data) 2012 2011
NONINTEREST EXPENSES
Salaries and employee benefits 3,784 3,282
Occupancy and equipment expenses 982 1,038
Advertising and promotion 127 111
Depositors' insurance 193 316
Outside services 281 235
Professional services 242 311
ATM processing fees 116 126
Mortgage servicing (income), net of amortization of mortgage servicing rights 7 (7 )
Supplies 92 84
Telephone 214 168
Other expenses 1,285 771
Total noninterest expenses 7,323 6,435
INCOME BEFORE PROVISION FOR INCOME TAXES 2,968 2,889
PROVISION FOR INCOME TAXES 886 864
NET INCOME $ 2,082 $ 2,025
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 1,832 $ 1,896
Earnings Per Common Share, basic $ 0.31 $ 0.33
Earnings Per Common Share, assuming dilution (1) $ 0.31 $ 0.33
Dividends Declared per common share $ 0.13 $ 0.13
(1) Diluted earnings per share are calculated using the weighted-average number of shares outstanding for the period, including common stock equivalents, as appropriate.

Contact Information

  • For additional information contact:
    Laura Jacobi
    Senior Vice President
    Chief Financial Officer
    603-863-0886