SOURCE: New Hampshire Thrift Bancshares

July 13, 2012 15:19 ET

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

Performance Reflects Loan and Deposit Growth

NEWPORT, NH--(Marketwire - Jul 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 six months ended June 30, 2012, of $4.1 million, or $0.61 per diluted diluted common share compared to $4.0 million, or $0.65 per diluted common share for same period in 2011, an increase of $69 thousand, or 1.71%. For the quarter ended June 30, 2012, the Company reported consolidated net income of $2.0 million, or $0.30 per diluted common share compared to $2.0 million, or $0.32 per diluted common share for the quarter ended June 30, 2011, an increase of $12 thousand, or 0.60%.

Financial Highlights

  • Total assets increased $100.0 million, or 9.60%, to $1.1 billion at June 30, 2012, from $1.0 billion at December 31, 2011.

  • Net loans increased $76.7 million, or 10.72%, to $791.6 million at June 30, 2012, from $715.0 million at December 31, 2011.

  • The Company originated $206.8 million in loans for the six months ended June 30, 2012, compared to $132.0 million for the same period in 2011.

  • The Company's loan servicing portfolio was $349.0 million at June 30, 2012, compared to $365.8 million at December 31, 2011.

  • Total deposits increased $23.8 million, or 2.97%, to $826.9 million at June 30, 2012, from $803.0 million at December 31, 2011. 

  • Net interest and dividend income for the six months ended June 30, 2012, was $14.4 million compared to $14.3 million for the same period in 2011.

  • Net income available to common stockholders was $3.6 million for the six months ended June 30, 2012, compared to $3.8 million for the same period in 2011.

  • The Company's returns on average assets and average equity for the six months ended June 30, 2012, were 0.82% and 6.94%, respectively, compared to 0.79% and 8.72%, respectively, for the same period in 2011.

  • As a percentage of total loans, non-performing loans decreased from 2.32% at December 31, 2011, to 1.91% at June 30, 2012.

Earnings Summary

Net income of $4.1 million for the six months ended June 30, 2012, includes an increase of $101 thousand, or 0.71%, in net interest and dividend income compared to the same period in 2011. The provision for loan losses increased $819 thousand, to $1.2 million for the six months ended June 30, 2012, compared to $410 thousand for the same period in 2011. Noninterest income increased $1.8 million, or 35.96%, to $6.9 million for the six months ended June 30, 2012, compared to $5.1 million for the same period in 2011. This increase includes increases of $325 thousand in net gains on the sales of loans, $1.0 million in net gains on sales and calls of securities, and $704 thousand in insurance commission income. Noninterest expense increased $990 thousand, or 7.45%, to $14.3 million for the six months ended June 30, 2012, compared to $13.3 million for the same period in 2011. Within noninterest expense, salaries and employee benefits increased $625 thousand, or 9.15%, to $7.5 million for the six months ended June 30, 2012, compared to $6.8 million for the same period in 2011, including $343 thousand of salaries and employees benefits of the insurance agency, which was acquired on November 10, 2011.

Net income of $2.0 million for the quarter ended June 30, 2012, includes an increase of $196 thousand, or 2.74%, in net interest and dividend income compared to the same period in 2011. The provision for loan losses increased $906 thousand to $1.1 million for the quarter ended June 30, 2012, compared to $168 thousand for the same period in 2011. Noninterest income increased $857 thousand, or 31.39%, to $3.6 million for the quarter ended June 30, 2012, compared to $2.7 million for the same period in 2011. This increase includes increases of $299 thousand in net gains on the sales of loans, $304 thousand in net gains on sales and calls of securities, and $294 thousand in insurance commission income. Noninterest expense increased $100 thousand, or 1.46%, to $7.0 million for the quarter ended June 30, 2012, compared to $6.9 million for the same period in 2011. 

Balance Sheet Summary

Total assets were $1.1 billion at June 30, 2012, compared to $1.0 billion at December 31, 2011, an increase of 9.60%. Securities available-for-sale decreased $23.4 million to $186.9 million at June 30, 2012, from $210.3 million at December 31, 2011. Net loans held in portfolio increased $76.7 million, or 10.72% to $791.6 million at June 30, 2012, from $715.0 million at December 31, 2011. The allowance for loan losses was $9.1 million at June 30, 2012, compared to $9.1 million at December 31, 2011. Within the allowance for loan losses is the net effect of provisions of $1.2 million, charge-offs of $1.4 million, and recoveries of $173 thousand during the six months ended June 30, 2012. As a percentage of total loans, non-performing loans decreased from 2.32% at December 31, 2011 to 1.91% at June 30, 2012. Total loan production for the six months ended June 30, 2012, was $206.8 million compared to $132.0 million for the six months ended June 30, 2011. Loan production during the second quarter of 2012 was $134.1 million compared to $63.1 million for the same period in 2011.

Total deposits increased $23.8 million, or 2.97%, to $826.9 million at June 30, 2012, from $803.0 million at December 31, 2011. Within deposits, savings and money market accounts increased $14.5 million, transaction accounts increased $9.6 million, brokered deposits increased $15.0 million, and time deposits decreased $15.3 million. Advances from the Federal Home Loan Bank increased $70.0 million, or 86.46%, to $151.0 million at June 30, 2012, from $81.0 million at December 31, 2011.

Stockholders' equity of $110.2 million resulted in a book value of $15.27 per common share at June 30, 2012, based on 5,907,402 shares of common stock outstanding, an increase of $0.07, or 0.46%, per common share from December 31, 2011. As previously announced, a regular quarterly dividend of $0.13 per share is payable on July 31, 2012 to stockholders of record of July 24, 2012. The Bank remains well-capitalized with a Tier I (Leverage) Capital ratio of 8.79% at June 30, 2012. 

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 service, 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 29 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  
(Dollars in thousands except for per share data)  
   
    For the three months
ended June 30,
    For the six months
ended June 30,
 
    2012     2011     2012     2011  
Net Income   $ 2,012     $ 2,000     $ 4,094     $ 4,025  
                                 
Per Share Data:                                
  Basic Earnings   $ 0.30     $ 0.32     $ 0.62     $ 0.65  
  Diluted Earnings (1)     0.30       0.32       0.61       0.65  
  Dividends Paid     0.13       0.13       0.26       0.26  
  Dividend Payout Ratio     43.33 %     40.63 %     42.62 %     40.00 %
                                 
                                 
    As of  
    June 30, 2012     December 31, 2011  
(Dollars in thousands except for per share data)        
Total Assets   $ 1,141,875     $ 1,041,819  
Total Securities (2)     196,113       217,933  
Loans, Net     791,607       714,952  
Total Deposits     826,863       803,023  
Federal Home Loan Bank Advances     150,972       80,967  
Stockholders' Equity     110,219       108,660  
Book Value per Common Share   $ 15.27     $ 15.20  
Common Shares Outstanding     5,907,402       5,832,360  
                 
Tier I (Core) Capital     8.79 %     9.58 %
                 
Number of Locations     29       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  
    June 30, 2012     December 31, 2011  
ASSETS   (unaudited)        
  Cash and due from banks   $ 22,404     $ 21,841  
  Federal Reserve Bank interest-bearing deposit     18,000       2,899  
      Total cash and cash equivalents     40,404       24,740  
  Securities available-for-sale     186,990       210,318  
  Federal Home Loan Bank stock     9,123       7,615  
  Loans held-for-sale     9,683       3,434  
  Loans receivable, net     791,607       714,952  
  Accrued interest receivable     2,840       2,669  
  Bank premises and equipment, net     16,664       16,450  
  Investments in real estate     3,926       3,451  
  Other real estate owned     -       1,344  
  Goodwill and intangible assets     30,180       30,352  
  Investment in partially owned Charter Holding Corp., at equity     5,143       4,895  
  Bank-owned life insurance     18,598       13,347  
  Due from brokers, net     18,257       -  
  Other assets     8,460       8,252  
    Total assets   $ 1,141,875     $ 1,041,819  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
LIABILITIES                
  Deposits:                
  Noninterest-bearing   $ 65,918     $ 64,356  
  Interest-bearing     760,945       738,667  
  Total deposits     826,863       803,023  
  Federal Home Loan Bank advances     150,972       80,967  
  Other borrowings     272       543  
  Securities sold under agreements to repurchase     21,278       15,514  
  Subordinated debentures     20,620       20,620  
  Accrued expenses and other liabilities     11,651       12,492  
    Total liabilities     1,031,656       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 June 30, 2012 and at December 31, 2011, liquidation value $1,000 per share    
-
      -  
  Common stock, $.01 par value, per share: 10,000,000 shares authorized, 6,332,681 shares issued and 5,907,402 shares outstanding as of June 30, 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     66,292       66,658  
  Retained earnings     51,922       49,892  
  Accumulated other comprehensive loss     (1,011 )     (887 )
  Unearned Stock Awards     (440 )     -  
  Treasury stock, at cost, 425,279 shares as of June 30, 2012, and 460,279 at December 31, 2011     (6,607 )     (7,151 )
    Total stockholders' equity     110,219       108,660  
    Total liabilities and stockholders' equity   $ 1,141,875     $ 1,041,819  
                     
                     
                     
New Hampshire Thrift Bancshares, Inc.
Consolidated Statements of Income (unaudited)
 
    Three months Ended June 30,   Six Months Ended
June 30,
(Dollars in thousands except for per share data)   2012   2011   2012     2011
INTEREST AND DIVIDEND INCOME                          
  Interest and fees on loans   $ 8,041   $ 7,884   $ 15,748     $ 15,849
  Interest and dividends on debt investments                          
    Taxable     984     1,225     2,128       2,458
    Dividends     14     10     31       20
    Other     145     219     310       454
  Total interest and dividend income     9,184     9,338     18,217       18,781
                           
INTEREST EXPENSE                          
  Interest on deposits     1,096     1,442     2,283       2,945
  Interest on advances and other borrowed money     749     753     1,488       1,491
  Total interest expense     1,845     2,195     3,771       4,436
                           
  Net interest and dividend income     7,339     7,143     14,446       14,345
                           
PROVISION FOR LOAN LOSSES     1,074     168     1,229       410
                           
  Net interest and dividend income after provision for loan losses     6,265     6,975     13,217       13,935
                           
OTHER INCOME                          
  Customer service fees     1,255     1,288     2,457       2,465
  Net gain on sales of loans     409     110     755       430
  Net gain on sales and calls of securities     1,173     869     2,324       1,310
  Net gain (loss) on sales of other real estate owned and fixed assets     31     6     (150 )     9
  Rental income     180     169     374       341
  Realized gain in Charter Holding Corp.     115     179     226       335
  Insurance commission income     293     -     706       -
  Brokerage service income     2     -     2       1
  Bank owned life insurance income     129     109     233       204
  Total noninterest income     3,587     2,730     6,927       5,095
                             
(unaudited)   Three months Ended June 30,     Six Months Ended
June 30,
 
(Dollars in thousands except for per share data)   2012   2011     2012   2011  
NONINTEREST EXPENSES                            
Salaries and employee benefits     3,675     3,552       7,459     6,834  
Occupancy and equipment expenses     933     931       1,949     1,969  
Advertising and promotion     128     147       255     258  
Depositors' insurance     205     321       399     637  
Data processing and outside services     267     261       548     497  
Professional services     273     266       515     578  
ATM processing fees     121     130       237     256  
Mortgage servicing (income), net of amortization of mortgage servicing rights     39     (54 )     45     (61 )
Supplies     94     81       187     165  
Other expenses     1,219     1,218       2,685     2,156  
Total noninterest expenses     6,954     6,853       14,279     13,289  
                             
INCOME BEFORE PROVISION FOR INCOME TAXES     2,898     2,852       5,865     5,741  
                             
PROVISION FOR INCOME TAXES     886     852       1,771     1,716  
                             
NET INCOME   $ 2,012   $ 2,000     $ 4,094   $ 4,025  
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS   $ 1,762   $ 1,871     $ 3,594   $ 3,767  
                             
Earnings Per Common Share, basic   $ 0.30   $ 0.32     $ 0.62   $ 0.65  
Earnings Per Common Share, assuming dilution (1)   $ 0.30   $ 0.32     $ 0.61   $ 0.65  
Dividends Declared per common share   $ 0.13   $ 0.13     $ 0.26   $ 0.26  
                             
(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