SOURCE: New Hampshire Thrift Bancshares

January 27, 2012 15:03 ET

New Hampshire Thrift Bancshares, Inc. Announces Earnings for Fiscal Year 2011

Performance Reflects Loan and Deposit Growth

NEWPORT, NH--(Marketwire - Jan 27, 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 twelve months ended December 31, 2011 of $7.7 million, or $1.20 per common share, assuming dilution, compared to $7.9 million, or $1.29 per common share, assuming dilution, for the same period in 2010, a decrease of $278 thousand, or 3.50%. For the quarter ended December 31, 2011, the Company reported consolidated net income of $1.6 million, or $0.24 per common share, assuming dilution, compared to $2.1 million, or $0.34 per common share, assuming dilution, for the quarter ended December 31, 2010, a decrease of $490 thousand, or 23.11%.

2011 Financial Highlights

  • Total assets increased $46.8 million, or 4.70%, to $1.0 billion at December 31, 2011 from $995.1 million at December 31, 2010.

  • Net loans increased $39.5 million, or 5.85%, to $715.0 million at December 31, 2011 from $675.5 million at December 31, 2010.

  • In 2011, the Company originated $289.1 million in loans, compared to $341.5 million in 2010.

  • The Company's loan servicing portfolio was $365.8 million at December 31, 2011 compared to $370.3 million at December 31, 2010.

  • Total deposits increased $24.8 million, or 3.19%, to $803.0 million at December 31, 2011 from $778.2 million at December 31, 2010.

  • Net interest and dividend income for the year ended December 31, 2011 was $28.5 million compared to $28.9 million for the same period in 2010.

  • The Company's returns on average assets and average equity for the twelve months ended December 31, 2011 were 0.74% and 7.96%, respectively, compared to 0.79% and 8.71%, respectively, for the same period in 2010.

  • As a percentage of total loans, non-performing loans increased from 1.45% at December 31, 2010 to 2.32% at December 31, 2011, primarily as a result of an increase in troubled debt restructurings.

  • Net income available to common stockholders was $7.0 million for the year ended December 31, 2011 compared to $7.4 million for the same period in 2010.

Earnings Summary

Net income of $7.7 million for the twelve months ended December 31, 2011 includes a decrease of $413 thousand, or 1.43%, in net interest and dividend income. The provision for loan losses decreased $831 thousand, or 38.08%, to $1.4 million for the twelve months ended December 31, 2011 compared to $2.2 million for the same period in 2010. Noninterest income increased $184 thousand, or 1.79%, to $10.5 million for the twelve months ended December 31, 2011 compared to $10.3 million for the same period in 2010. This increase includes decreases of $127 thousand in customer service fees and $761 thousand in net gains on the sales of loans partially offset by increases of $505 thousand in net gains on sales and calls of securities, $381 thousand in realized gain in Charter Holding Corp., $119 thousand in insurance commission income and $76 thousand in bank-owned life insurance income. Noninterest expense increased $1.6 million, or 6.32%, to $27.1 million for the twelve months ended December 31, 2011 compared to $25.5 million for the same period in 2010. Within noninterest expense, salaries and employee benefits increased $936 thousand, or 7.00%, to $14.3 million for the twelve months ended December 31, 2011 compared to $13.4 million for the same period in 2010.

Net income of $1.6 million for the quarter ended December 31, 2011 includes an increase of $375 thousand, or 5.65%, in net interest and dividend income compared to the same period in 2010. The provision for loan losses increased $205 thousand to $367 thousand for the quarter ended December 31, 2011 compared to $162 thousand for the same period in 2010. Noninterest income decreased $249 thousand, or 9.09%, to $2.5 million for the quarter ended December 31, 2011 compared to $2.7 million for the same period in 2010. This decrease includes decreases of $78 thousand in net gains on sales and calls of securities and $382 thousand in net gain on sales of loans partially offset by increases of $88 thousand in realized gain in Charter Holding Corp., $119 thousand in insurance commission income, and $31 thousand in bank-owned life insurance income. Noninterest expense increased $734 thousand, or 11.55%, to $7.1 million for the quarter ended December 31, 2011 compared to $6.4 million for the same period in 2010.

Balance Sheet Summary

Total assets were $1.0 billion at December 31, 2011, compared to $995.1 million at December 31, 2010, an increase of 4.70%. Securities available-for-sale increased $14.3 million to $210.3 million at December 31, 2011 from $196.0 million at December 31, 2010. Net loans held in portfolio increased $39.5 million, or 5.85%, to $715.0 million at December 31, 2011, from $675.5 million at December 31, 2010. The allowance for loan losses was $9.1 million at December 31, 2011, compared to $9.9 million at December 31, 2010. The change in the allowance for loan losses is the net effect of provisions of $1.4 million, charge-offs of $2.4 million, and recoveries of $365 thousand. As a percentage of total loans, non-performing loans increased from 1.45% at December 31, 2010 to 2.32% at December 31, 2011, primarily as a result of an increase in troubled debt restructurings. Total loan production for the twelve months ended December 31, 2011 was $289.1 million compared to $341.5 million for the twelve months ended December 31, 2010. Loan production during the fourth quarter of 2011 was $93.2 million compared to $122.0 million for the same period in 2010.

Total deposits increased $24.8 million, or 3.19%, to $803.0 million at December 31, 2011 from $778.2 million at December 31, 2010. Within deposits, savings and money market accounts increased $21.6 million, transaction accounts increased $18.9 million and time deposits decreased $15.7 million. Advances from the Federal Home Loan Bank increased $5.0 million, or 6.59%, to $81.0 million at December 31, 2011 from $76.0 million at December 31, 2010.

Stockholders' equity of $108.7 million resulted in a book value of $15.20 per common share at December 31, 2011 based on 5,832,360 shares of common stock outstanding, an increase of $0.94, or 6.58%, per common share from a year ago. As previously announced, a regular quarterly dividend of $0.13 per share is payable on January 31, 2012 to stockholders of record of January 24, 2012. The Bank remains well-capitalized with a Tier I (Core) Capital ratio of 9.75% at December 31, 2011. Tier I (Core) Capital at December 31, 2011 includes additional investment from the U.S. Department of the Treasury (the "Treasury") during 2011.

Other Events

On August 29, 2011, the Company announced that it received $20.0 million from the Small Business Lending Fund ("SBLF"). The SBLF is the Treasury's effort to bring Main Street banks and small businesses together to help create jobs and promote economic growth in local communities. The Company used $10.0 million of the SBLF proceeds to repurchase approximately $10.0 million of outstanding preferred shares issued under the Treasury's Capital Purchase Program.

On November 10, 2011, the Company announced it had completed its acquisition of McCrillis & Eldredge Insurance, Inc., ("McCrillis & Eldredge") of Newport, New Hampshire. McCrillis & Eldredge is a full-line independent insurance agency which offers a complete range of commercial insurance services and consumer products, including life, health, auto, and homeowner insurances. McCrillis & Eldredge will retain its name and operate as a division of the Bank.

About New Hampshire Thrift Bancshares, Inc.

New Hampshire Thrift Bancshares, Inc. is the bank holding company of Lake Sunapee Bank, fsb, a federally-chartered stock savings bank which provides a wide range of banking and financial services including 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 $1.0 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, 2010, 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 Years Ended December 31, 2011 2010
(Dollars in thousands except for per share data)
Net Income $ 7,669 $ 7,947
Per Share Data:
Basic Earnings 1.20 1.29
Diluted Earnings (1) 1.20 1.29
Dividends Paid 0.52 0.52
Dividend Payout Ratio 43.33 % 40.31 %
Return on Average Assets 0.74 % 0.79 %
Return on Average Equity 7.96 % 8.71 %
As of December 31, 2011 2010
(Dollars in thousands except for per share data)
Total Assets $ 1,041,819 $ 995,054
Total Securities (2) 217,933 203,600
Loans, Net 714,952 675,514
Total Deposits 803,023 778,219
Federal Home Loan Bank Advances 80,967 75,959
Stockholders' Equity 108,660 92,391
Book Value per Common Share $ 15.20 $ 14.26
Shares Outstanding 5,832,360 5,773,772
Tier I (Core) Capital 9.75 % 8.28 %
Number of Locations 30 28
(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
As of December 31,
(Dollars in thousands) 2011 2010
ASSETS (unaudited)
Cash and due from banks $ 21,841 $ 21,513
Federal Home Loan Bank overnight deposit 2,899 11,700
Total cash and cash equivalents 24,740 33,213
Securities available-for-sale 210,318 195,985
Federal Home Loan Bank stock 7,615 7,615
Loans held-for-sale 3,434 5,887
Loans receivable, net of the allowance for loan losses of $9.1 million as of December 31, 2011 and $9.9 million as of December 31, 2010
714,952

675,514
Accrued interest receivable 2,669 2,986
Bank premises and equipment, net 16,450 16,672
Investments in real estate 3,451 3,550
Other real estate owned 1,344 75
Goodwill 28,597 27,293
Intangible assets 1,755 1,550
Investment in partially owned Charter Holding Corp., at equity 4,895 4,899
Bank-owned life insurance 13,347 10,358
Other assets 8,252 9,457
Total assets $ 1,041,819 $ 995,054
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing $ 64,356 $ 53,265
Interest-bearing 738,667 724,954
Total deposits 803,023 778,219
Federal Home Loan Bank advances 80,967 75,959
Other borrowings 543 -
Securities sold under agreements to repurchase 15,514 16,165
Subordinated debentures 20,620 20,620
Accrued expenses and other liabilities 12,492 11,699
Total liabilities 933,159 902,662
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value per share: 2,500,000 shares authorized:
Series B, fixed rate noncumulative perpetual, fixed rate cumulative perpetual, 20,000 shares issued and outstanding at December 31, 2011 and no shares issued and outstanding at December 31, 2010 - -
Series A, no shares issued and outstanding at December 31, 2011 and 10,000 shares issued and outstanding at December 31, 2010 - -
Common stock, $.01 par value, per share: 10,000,000 shares authorized, 6,292,639 shares issued and 5,832,360 shares outstanding as of December 31, 2011 and 6,234,051 shares issued and 5,773,772 shares outstanding as of December 31, 2010
63


62
Warrants 85 85
Paid-in capital 66,658 55,921
Retained earnings 49,892 46,001
Accumulated other comprehensive loss (887 ) (2,527 )
Treasury stock, at cost, 460,279 shares as of December 31, 2011 and 2010 (7,151 ) (7,151 )
Total stockholders' equity 108,660 92,391
Total liabilities and stockholders' equity $ 1,041,819 $ 995,054

New Hampshire Thrift Bancshares, Inc.
Consolidated Statements of Income
For the Twelve Months Ended
December 31,
Three Months Ended
December 31,
(Dollars in thousands except for per share data) 2011 2010 2011 2010
INTEREST AND DIVIDEND INCOME (unaudited) (unaudited)
Interest and fees on loans $ 31,640 $ 31,955 $ 7,844 $ 7,773
Interest and dividends on debt investments
Taxable 4,601 6,085 989 1,215
Dividends 35 17 6 4
Other 912 599 232 49
Total interest and dividend income 37,188 38,656 9,071 9,041
INTEREST EXPENSE
Interest on deposits 5,771 6,634 1,360 1,624
Interest on advances and other borrowed money 1,863 2,040 450 526
Interest expenses on debentures 1,008 1,011 256 254
Interest on securities sold under agreements to repurchase 47 59 9 15
Total interest expense 8,689 9,744 2,075 2,419
Net interest and dividend income 28,499 28,912 6,996 6,622
PROVISION FOR LOAN LOSSES 1,351 2,182 367 162
Net interest and dividend income after provision for loan losses 27,148 26,730 6,629 6,460
OTHER INCOME
Customer service fees 5,071 5,198 1,258 1,259
Net gain on sales and calls of securities 2,588 2,083 348 426
Net gain on sales of loans 931 1,692 368 750
Net gain on sales of other real estate owned and fixed assets
27

50

-

7
Rental income 714 701 163 182
Realized gain in Charter Holding Corp. 573 192 114 26
Insurance commission income 122 2 120 1
Bank owned life insurance income 432 356 118 87
Total noninterest income 10,458 10,274 2,489 2,738

For the Twelve Months Ended
December 31,
Three Months Ended
December 31,
(Dollars in thousands except for per share data) 2011 2010 2011 2010
NONINTEREST EXPENSES (unaudited) (unaudited)
Salaries and employee benefits 14,306 13,370 3,781 3,691
Occupancy and equipment expenses 3,807 3,743 957 914
Advertising and promotion 510 432 141 126
Depositors' insurance 793 1,020 184 238
Professional services 1,122 953 315 218
Data processing and outside services 1,048 934 285 215
Telephone 799 676 294 164
ATM processing fees 481 520 118 124
Mortgage servicing (income), net of amortization of mortgage servicing rights
(117
)
(113
)
11

(11
)
Supplies 344 408 93 115
Other expenses 4,034 3,570 905 557
Total noninterest expenses 27,127 25,513 7,084 6,352
INCOME BEFORE PROVISION FOR INCOME TAXES 10,480 11,491 2,034 2,846
PROVISION FOR INCOME TAXES 2,811 3,544 404 726
NET INCOME $ 7,669 $ 7,947 $ 1,630 $ 2,120
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 6,956 $ 7,431 $ 1,393 $ 1,990
Earnings Per Common Share, basic $ 1.20 $ 1.29 $ 0.24 $ 0.34
Earnings Per Common Share, assuming dilution (1) $ 1.20 $ 1.29 $ 0.24 $ 0.34
Dividends Declared per common share $ 0.52 $ 0.52 $ 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:
    Stephen R. Theroux
    President
    603-863-0886