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

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.