SOURCE: New Hampshire Thrift Bancshares

February 01, 2013 16:05 ET

New Hampshire Thrift Bancshares, Inc. Announces Earnings for Fiscal Year 2012

Performance Reflects Loan and Deposit Growth

NEWPORT, NH--(Marketwire - Feb 1, 2013) - 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, 2012, of $7.8 million, or $1.20 per common share, assuming dilution, compared to $7.7 million, or $1.20 per common share, assuming dilution, for same period in 2011, an increase of $90 thousand, or 1.18%. For the quarter ended December 31, 2012, the Company reported consolidated net income of $1.6 million, or $0.26 per common share, assuming dilution, compared to $1.6 million, or $0.24 per common share, assuming dilution, for the quarter ended December 31, 2011, an increase of $5 thousand, or 0.31%.

2012 Financial Highlights

  • Total assets increased $228.7 million, or 21.95%, to $1.3 billion at December 31, 2012, from $1.0 billion at December 31, 2011.

  • Net loans increased $187.3 million, or 26.20%, to $902.2 million at December 31, 2012, from $715.0 million at December 31, 2011.

  • In 2012, the Company originated $426.8 million in loans, compared to $289.1 million in 2011.

  • The Company's loan servicing portfolio was $385.4 million at December 31, 2012, compared to $365.8 million at December 31, 2011.

  • Total deposits increased $146.3 million, or 18.22%, to $949.3 million at December 31, 2012, from $803.0 million at December 31, 2011.

  • Net interest and dividend income for the year ended December 31, 2012, was $29.0 million compared to $28.5 million for the same period in 2011.

  • Net income available to common stockholders was $7.1 million for the year ended December 31, 2012, compared to $7.0 million for the same period in 2011

  • The Company's returns on average assets and average equity for the twelve months ended December 31, 2012, were 0.84% and 7.51%, respectively, compared to 0.74% and 7.96%, respectively, for the same period in 2011.

  • As a percentage of total loans, non-performing loans decreased to 1.59% at December 31, 2012, from 2.32% at December 31, 2011.

Earnings Summary

Net income of $7.8 million for the twelve months ended December 31, 2012, includes an increase of $523 thousand, or 1.84%, in net interest and dividend income. The provision for loan losses increased $1.3 million, or 100.22%, to $2.7 million for the twelve months ended December 31, 2012, compared to $1.4 million for the same period in 2011. Noninterest income increased $4.2 million, or 39.69%, to $14.6 million for the twelve months ended December 31, 2012, compared to $10.5 million for the same period in 2011. This increase includes a net loss on sales of other real estate owned of $150 thousand and decreases of $4 thousand in customer service fees and $129 thousand in realized gain in Charter Holding Corp partially offset by increases of $1.2 million in net gains on sales and calls of securities, $1.9 million in net gains on the sales of loans, $1.2 million in insurance commission income and $79 thousand in bank-owned life insurance income. Noninterest expense increased $2.4 million, or 8.69%, to $29.5 million for the twelve months ended December 31, 2012, compared to $27.1 million for the same period in 2011. Within noninterest expense, salaries and employee benefits increased $682 thousand, or 4.78%, to $15.0 million for the twelve months ended December 31, 2012, compared to $14.3 million for the same period in 2011. The Company recorded approximately $1.2 million of expenses related to the fourth quarter acquisition of The Nashua Bank.

Net income of $1.6 million for the quarter ended December 31, 2012, includes an increase of $325 thousand, or 4.64%, in net interest and dividend income compared to the same period in 2011. The provision for loan losses increased $77 thousand to $444 thousand for the quarter ended December 31, 2012, compared to $367 thousand for the same period in 2011. Noninterest income increased $1.3 million, or 51.23%, to $3.8 million for the quarter ended December 31, 2012, compared to $2.5 million for the same period in 2011. This increase includes increases of $20 thousand in customer service fees, $56 thousand in net gains on sales and calls of securities, $965 thousand in net gain on sales of loans, $13 thousand in rental income, $32 thousand in realized gain in Charter Holding Corp., $146 thousand in insurance commission income, and $19 thousand in bank-owned life insurance income. Noninterest expense increased $853 thousand, or 12.04%, to $7.9 million for the quarter ended December 31, 2012, compared to $7.1 million for the same period in 2011, including approximately $1.0 million of expenses related to the acquisition of The Nashua Bank.

Balance Sheet Summary

Total assets were $1.3 billion at December 31, 2012, compared to $1.0 billion at December 31, 2011, an increase of 21.95%. Securities available-for-sale increased $2.1 million to $212.4 million at December 31, 2012, from $210.3 million at December 31, 2011. Net loans held in portfolio increased $187.3 million, or 26.20%, to $902.2 million at December 31, 2012, from $715.0 million at December 31, 2011. This increase in loans includes approximately $91.5 million of loans from the acquisition of The Nashua Bank. The allowance for loan losses was $9.9 million at December 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 $2.7 million, charge-offs of $2.5 million, and recoveries of $596 thousand. As a percentage of total loans, non-performing loans decreased from 2.32% at December 31, 2011 to 1.59% at December 31, 2012. Total loan production for the twelve months ended December 31, 2012, was $426.8 million compared to $289.1 million for the twelve months ended December 31, 2011. Loan production during the fourth quarter of 2012 was $103.5 million compared to $93.2 million for the same period in 2011.

Total deposits increased $146.3 million, or 18.22%, to $949.3 million at December 31, 2012, from $803.0 million at December 31, 2011. This increase in deposits includes approximately $94.4 million of deposits from the acquisition of The Nashua Bank. Within deposits, savings and money market accounts increased $87.2 million, transaction accounts increased $41.7 million and time deposits increased $17.4 million. Advances from the Federal Home Loan Bank increased $61.8 million, or 76.32%, to $142.7 million at December 31, 2012, from $81.0 million at December 31, 2011.

Stockholders' equity of $129.5 million resulted in a book value of $15.09 per common share at December 31, 2012, based on 7,055,946 shares of common stock outstanding. The Bank remains well-capitalized with a Leverage (Tier I) Capital ratio of 8.87% at December 31, 2012.

Other Events

On December 21, 2012, the Company announced it had completed its acquisition of The Nashua Bank in Nashua, New Hampshire, expanding the Company's presence in southern New Hampshire. The Company issued approximately 1.15 million shares of its common stock and paid approximately $3.68 million in cash to Nashua Bank shareholders in the transaction. The Nashua Bank now operates under the name "The Nashua Bank, a division of Lake Sunapee Bank, fsb."

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 banking and insurance 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 $1.3 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 Years Ended December 31,   2012     2011  
(Dollars in thousands except for per share data)        
Net Income   $ 7,759     $ 7,669  
Per Share Data:                
  Basic Earnings     1.20       1.20  
  Diluted Earnings (1)     1.20       1.20  
  Dividends Paid     0.52       0.52  
  Dividend Payout Ratio     43.33 %     43.33 %
                 
Return on Average Assets     0.84 %     0.74 %
Return on Average Equity     7.51 %     7.96 %
                 
                 
As of December 31,   2012     2011  
(Dollars in thousands except for per share data)        
Total Assets   $ 1,270,477     $ 1,041,819  
Total Securities (2)     221,875       217,933  
Loans, Net     902,236       714,952  
Total Deposits     949,341       803,023  
Federal Home Loan Bank Advances     142,730       80,967  
Stockholders' Equity     129,494       108,660  
Book Value per Common Share   $ 15.09     $ 15.20  
Common Shares Outstanding     7,055,946       5,832,360  
                 
Leverage (Tier I) Capital     8.87 %     9.75 %
                 
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  
   
As of December 31,            
(Dollars in thousands)   2012     2011  
ASSETS   (unaudited)        
  Cash and due from banks   $ 26,147     $ 21,841  
  Overnight deposits     13,265       2,899  
      Total cash and cash equivalents     39,412       24,740  
  Securities available-for-sale     212,369       210,318  
  Federal Home Loan Bank stock     9,506       7,615  
  Loans held-for-sale     11,983       3,434  
  Loans receivable, net of the allowance for loan losses of $9.9 million as of December 31, 2012, and $9.1 million as of December 31, 2011     902,236       714,952  
  Accrued interest receivable     2,845       2,669  
  Bank premises and equipment, net     17,261       16,450  
  Investments in real estate     4,074       3,451  
  Other real estate owned     102       1,344  
  Goodwill     35,395       28,597  
  Intangible assets     3,416       1,755  
  Investment in partially owned Charter Holding Corp., at equity     4,909       4,895  
  Bank-owned life insurance     18,905       13,347  
  Other assets     8,064       8,252  
    Total assets   $ 1,270,477     $ 1,041,819  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
LIABILITIES                
  Deposits:                
  Noninterest-bearing   $ 74,133     $ 64,356  
  Interest-bearing     875,208       738,667  
  Total deposits     949,341       803,023  
  Federal Home Loan Bank advances     142,730       80,967  
  Other borrowings     -       543  
  Securities sold under agreements to repurchase     14,619       15,514  
  Subordinated debentures     20,620       20,620  
  Accrued expenses and other liabilities     13,673       12,492  
    Total liabilities     1,140,983       933,159  
                 
STOCKHOLDERS' EQUITY                
  Preferred stock, $.01 par value per share: 2,500,000 shares authorized:                
      Series B, fixed rate noncumulative perpetual, fixed rate cumulative perpetual, 23,000 shares issued and outstanding at December 31, 2012, and 20,000 shares issued and outstanding at December 31, 2011     -       -  
  Common stock, $.01 par value, per share: 10,000,000 shares authorized, 7,486,225 shares issued and 7,055,946 shares outstanding as of December 31, 2012, and 6,292,639 shares issued and 5,832,360 shares outstanding as of December 31, 2011     75       63  
  Warrants     -       85  
  Paid-in capital     83,977       66,658  
  Retained earnings     53,933       49,892  
  Accumulated other comprehensive loss     (1,444 )     (887 )
  Unearned stock awards     (377 )     -  
  Treasury stock, at cost, 430,279 shares as of December 31, 2012, and 460,279 shares as of December 31, 2011     (6,670 )     (7,151 )
    Total stockholders' equity     129,494       108,660  
    Total liabilities and stockholders' equity   $ 1,270,477     $ 1,041,819  
 
 
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)   2012     2011   2012   2011
INTEREST AND DIVIDEND INCOME   (unaudited)         (unaudited)    
  Interest and fees on loans   $ 32,542     $ 31,640   $ 8,489   $ 7,844
  Interest and dividends on debt investments                          
  Taxable     3,223       4,601     466     989
  Dividends     62       35     15     6
  Other     594       912     135     232
  Total interest and dividend income     36,421       37,188     9,105     9,071
                           
INTEREST EXPENSE                          
  Interest on deposits     4,381       5,771     1,026     1,360
  Interest on advances and other borrowed money     1,944       1,863     495     450
  Interest expense on debentures     1,027       1,008     252     256
  Interest on securities sold under agreements to repurchase     47       47     12     9
  Total interest expense     7,399       8,689     1,785     2,075
                             
  Net interest and dividend income     29,022       28,499     7,320     6,996
                           
PROVISION FOR LOAN LOSSES     2,705       1,351     444     367
                           
  Net interest and dividend income after provision for loan losses     26,317       27,148     6,876     6,629
                           
OTHER INCOME                          
  Customer service fees     5,068       5,071     1,300     1,258
  Net gain on sales and calls of securities     3,819       2,588     404     348
  Net gain on sales of loans     2,867       931     1,333     368
  Net (loss) gain on sales of other real estate owned and fixed assets     (150 )     27     -     -
  Rental income     736       714     176     163
  Realized gain in Charter Holding Corp.     444       573     146     114
  Insurance commission income     1,315       122     267     120
  Bank owned life insurance income     511       432     137     118
  Total noninterest income     14,609       10,458     3,763     2,489
           
           
    For the Twelve Months Ended December 31,     Three Months Ended
December 31,
(Dollars in thousands except for per share data)   2012   2011     2012     2011
NONINTEREST EXPENSES   (unaudited)         (unaudited)      
Salaries and employee benefits     14,988     14,307       3,836       3,781
Occupancy and equipment expenses     3,648     3,806       937       957
Advertising and promotion     481     510       131       141
Depositors' insurance     802     793       198       184
Professional services     1,208     1,122       289       315
Data processing and outside services     1,117     1,048       268       285
Telephone     664     799       153       294
ATM processing fees     498     481       130       118
Mortgage servicing (income), net of amortization of mortgage servicing rights     92     (117 )     (4 )     11
Supplies     373     344       94       93
Other expenses     5,612     4,034       1,905       905
Total noninterest expenses     29,483     27,126       7,937       7,084
                             
INCOME BEFORE PROVISION FOR INCOME TAXES     11,443     10,480       2,703       2,034
                             
PROVISION FOR INCOME TAXES     3,684     2,811       1,068       404
                             
NET INCOME   $ 7,759   $ 7,669     $ 1,635     $ 1,630
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS   $ 7,093   $ 6,956     $ 1,584     $ 1,393
                             
Earnings Per Common Share, basic   $ 1.20   $ 1.20     $ 0.26     $ 0.24
Earnings Per Common Share, assuming dilution (1)   $ 1.20   $ 1.20     $ 0.26     $ 0.24
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