SOURCE: New Hampshire Thrift Bancshares

October 15, 2012 16:59 ET

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

Performance Reflects Loan and Deposit Growth

NEWPORT, NH--(Marketwire - Oct 15, 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 nine months ended September 30, 2012, of $6.1 million, or $0.94 per diluted common share, compared to $6.0 million, or $0.96 per diluted common share for same period in 2011, an increase of $86 thousand, or 1.42%. For the quarter ended September 30, 2012, the Company reported consolidated net income of $2.0 million, or $0.32 per diluted common share compared to $2.0 million, or $0.31 per diluted common share, for the quarter ended September 30, 2011, an increase of $17 thousand, or 0.84%.

Financial Highlights

  • Total assets increased $76.5 million, or 7.34%, to $1.1 billion at September 30, 2012, from $1.0 billion at December 31, 2011.

  • Net loans increased $95.3 million, or 13.34%, to $810.3 million at September 30, 2012, from $715.0 million at December 31, 2011.

  • The Company originated $323.3 million in loans for the nine months ended September 30, 2012, compared to $195.8 million for the same period in 2011.

  • The Company's loan servicing portfolio was $361.1 million at September 30, 2012, compared to $365.8 million at December 31, 2011.

  • Total deposits increased $27.6 million, or 3.44%, to $830.7 million at September 30, 2012, from $803.0 million at December 31, 2011.

  • Net interest and dividend income for the nine months ended September 30, 2012, was $21.7 million compared to $21.5 million for the same period in 2011.

  • Net income available to common stockholders was $5.5 million for the nine months ended September 30, 2012, compared to $5.6 million for the same period in 2011.

  • The Company's returns on average assets and average equity for the nine months ended September 30, 2012, were 0.82% and 7.24%, respectively, compared to 0.88% and 7.91%, 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 2.04% at September 30, 2012.

Earnings Summary

Net income of $6.1 million for the nine months ended September 30, 2012 includes an increase of $196 thousand, or 0.91%, in net interest and dividend income compared to the same period in 2011. The provision for loan losses increased $1.3 million, to $2.3 million for the nine months ended September 30, 2012, compared to $984 thousand for the same period in 2011. Noninterest income increased $2.9 million, or 36.11%, to $10.8 million for the nine months ended September 30, 2012, compared to $8.0 million for the same period in 2011. This increase includes increases of $971 thousand in net gains on the sales of loans, $1.2 million in net gains on sales and calls of securities, and $1.0 million in insurance commission income. Noninterest expense increased $1.5 million, or 7.50%, to $21.5 million for the nine months ended September 30, 2012, compared to $20.0 million for the same period in 2011. Within noninterest expense, salaries and employee benefits increased $628 thousand, or 5.97%, to $11.2 million for the nine months ended September 30, 2012, compared to $10.5 million for the same period in 2011, including $532 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 September 30, 2012 includes an increase of $98 thousand, or 1.37%, in net interest and dividend income compared to the same period in 2011. The provision for loan losses increased $458 thousand to $1.0 million for the quarter ended September 30, 2012, compared to $574 thousand for the same period in 2011. Noninterest income increased $1.0 million, or 36.40%, to $3.9 million for the quarter ended September 30, 2012, compared to $2.9 million for the same period in 2011. This increase includes increases of $645 thousand in net gains on the sales of loans, $162 thousand in net gains on sales and calls of securities, and $343 thousand in insurance commission income. Noninterest expense increased $513 thousand, or 7.60%, to $7.3 million for the quarter ended September 30, 2012, compared to $6.8 million for the same period in 2011.

Balance Sheet Summary

Total assets were $1.1 billion at September 30, 2012, compared to $1.0 billion at December 31, 2011, an increase of 7.34%. Securities available-for-sale decreased $36.1 million to $174.2 million at September 30, 2012, from $210.3 million at December 31, 2011. Net loans held in portfolio increased $95.3 million, or 13.34% to $810.3 million at September 30, 2012, from $715.0 million at December 31, 2011. The allowance for loan losses was $9.8 million at September 30, 2012, compared to $9.1 million at December 31, 2011. Within the allowance for loan losses is the net effect of provisions of $2.2 million, charge-offs of $1.9 million, and recoveries of $390 thousand during the nine months ended September 30, 2012. As a percentage of total loans, non-performing loans decreased from 2.32% at December 31, 2011, to 2.04% at September 30, 2012. The Company originated $323.3 million in loans for the nine months ended September 30, 2012, compared to $195.8 million for the same period in 2011. Loan production during the second quarter of 2012 was $116.5 million compared to $63.8 million for the same period in 2011.

Total deposits increased $27.6 million, or 3.44%, to $830.7 million at September 30, 2012, from $803.0 million at December 31, 2011. Within deposits, savings and money market accounts increased $29.2 million, transaction accounts increased $7.8 million, brokered deposits increased $15.0 million, and time deposits decreased $24.4 million. Advances from the Federal Home Loan Bank increased $40.0 million, or 49.41% to $121.0 million at September 30, 2012, from $81.0 million at December 31, 2011.

Stockholders' equity of $112.0 million resulted in a book value of $15.58 per common share at September 30, 2012, based on 5,902,402 shares of common stock outstanding, an increase of $0.38, or 2.50%, per common share from December 31, 2011. As previously announced, a regular quarterly dividend of $0.13 per share is payable on October 31, 2012 to stockholders of record of October 24, 2012. The Bank remains well-capitalized with a Tier I (Leverage) Capital ratio of 9.22% at September 30, 2012.

Acquisition of The Nashua Bank

On August 1, 2012, the Company announced the execution of a definitive agreement in which it will acquire The Nashua Bank in an exchange of cash and stock (the "Merger"). The Nashua Bank will merge with and into the Bank and will operate under the name "The Nashua Bank, a division of Lake Sunapee Bank." Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approval and the approval of The Nashua Bank's shareholders. The transaction is expected to close in the fourth quarter of 2012.

For additional information, please see the Current Report on Form 8-K filed with the Securities and Exchange Commission on August 7, 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 September 30,
  For the nine months
ended September 30,
  2012     2011     2012     2011  
Net Income $ 2,030     $ 2,013     $ 6,124     $ 6,038  
                               
Per Share Data:                              
  Basic Earnings $ 0.32     $ 0.31     $ 0.94     $ 0.96  
  Diluted Earnings (1)   0.32       0.31       0.94       0.96  
  Dividends Declared   0.13       0.13       0.39       0.39  
  Dividend Payout Ratio   40.63 %     41.94 %     41.49 %     40.63 %
                                 
                                 
    As of  
    September 30, 2012     December 31, 2011  
(Dollars in thousands except for per share data)        
Total Assets   $ 1,118,361     $ 1,041,819  
Total Securities (2)     183,370       217,933  
Loans, Net     810,307       714,952  
Total Deposits     830,664       803,023  
Federal Home Loan Bank Advances     120,974       80,967  
Stockholders' Equity     111,986       108,660  
Book Value per Common Share   $ 15.58     $ 15.20  
Common Shares Outstanding     5,902,402       5,832,360  
                 
Tier I (Core) Capital     9.21 %     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  
(Dollars in thousands, except for per share data)   September 30, 2012     December 31, 2011  
ASSETS   (unaudited)        
  Cash and due from banks   $ 16,839     $ 21,841  
  Federal Reserve Bank interest-bearing deposit     12,000       2,899  
      Total cash and cash equivalents     28,839       24,740  
  Securities available-for-sale     174,247       210,318  
  Federal Home Loan Bank stock     9,123       7,615  
  Loans held-for-sale     10,718       3,434  
  Loans receivable, net     810,307       714,952  
  Accrued interest receivable     2,616       2,669  
  Bank premises and equipment, net     16,573       16,450  
  Investments in real estate     3,863       3,451  
  Other real estate owned     -       1,344  
  Goodwill and intangible assets     30,077       30,352  
  Investment in partially owned Charter Holding Corp., at equity     5,217       4,895  
  Bank-owned life insurance     18,758       13,347  
  Other assets     8,023       8,252  
    Total assets   $ 1,118,361     $ 1,041,819  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
LIABILITIES                
  Deposits:                
    Noninterest-bearing   $ 68,465     $ 64,356  
    Interest-bearing     762,199       738,667  
      Total deposits     830,664       803,023  
  Federal Home Loan Bank advances     120,974       80,967  
  Other borrowings     272       543  
  Securities sold under agreements to repurchase     18,330       15,514  
  Subordinated debentures     20,620       20,620  
  Accrued expenses and other liabilities     15,515       12,492  
    Total liabilities     1,006,375       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 September 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 5,902,402 shares outstanding as of September 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     53,067       49,892  
  Accumulated other comprehensive loss     (389 )     (887 )
  Unearned Stock Awards     (377 )     -  
  Treasury stock, at cost, 430,279 shares as of September 30, 2012, and 460,279 at December 31, 2011     (6,670 )     (7,151 )
    Total stockholders' equity     111,986       108,660  
    Total liabilities and stockholders' equity   $ 1,118,361     $ 1,041,819  
                   
                   
                   
New Hampshire Thrift Bancshares, Inc.
Consolidated Statements of Income (unaudited)
 
    Three months Ended September 30,   Nine months Ended
September 30,
(Dollars in thousands except for per share data)   2012   2011   2012     2011
INTEREST AND DIVIDEND INCOME                          
  Interest and fees on loans   $ 8,305   $ 7,947   $ 24,053     $ 23,797
  Interest and dividends on debt investments                          
    Taxable     628     1,154     2,757       3,612
    Dividends     15     9     47       29
    Other     134     226     443       679
  Total interest and dividend income     9,082     9,336     27,300       28,117
                           
INTEREST EXPENSE                          
  Interest on deposits     1,072     1,466     3,358       4,411
  Interest on advances and other borrowed money     755     712     2,243       2,203
  Total interest expense     1,827     2,178     5,601       6,614
                             
  Net interest and dividend income     7,255     7,158     21,699       21,503
                           
PROVISION FOR LOAN LOSSES     1,032     574     2,261       984
                           
  Net interest and dividend income after provision for loan losses     6,223     6,584     19,438       20,519
                           
OTHER INCOME                          
  Customer service fees     1,306     1,348     3,764       3,813
  Net gain on sales of loans     778     133     1,534       563
  Net gain on sales and calls of securities     1,091     929     3,415       2,239
  Net gain (loss) on sales of other real estate owned and fixed assets     -     18     (150 )     27
  Rental income     187     210     560       551
  Realized gain in Charter Holding Corp.     72     124     298       459
  Insurance commission income     343     -     1,048       -
  Brokerage service income     1     1     3       2
  Bank-owned life insurance income     141     110     374       314
  Total noninterest income     3,919     2,873     10,846       7,968
                             
             
             
(unaudited)   Three months Ended September 30,     Nine months Ended
September 30,
 
(Dollars in thousands except for per share data)   2012   2011     2012   2011  
NONINTEREST EXPENSES                            
Salaries and employee benefits     3,694     3,691       11,153     10,525  
Occupancy and equipment expenses     876     881       2,767     2,850  
Advertising and promotion     96     111       350     369  
Depositors' insurance     204     (27 )     603     610  
Data processing and outside services     301     266       848     763  
Professional services     404     230       919     808  
ATM processing fees     130     107       367     363  
Mortgage servicing (income), net of amortization of mortgage servicing rights     50     (67 )     96     (128 )
Supplies     93     85       279     251  
Other expenses     1,419     1,477       4,162     3,632  
Total noninterest expenses     7,267     6,754       21,544     20,043  
                             
INCOME BEFORE PROVISION FOR INCOME TAXES     2,875     2,703       8,740     8,444  
                             
PROVISION FOR INCOME TAXES     845     690       2,616     2,406  
                             
NET INCOME   $ 2,030   $ 2,013     $ 6,124   $ 6,038  
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS   $ 1,914   $ 1,800     $ 5,508   $ 5,567  
                             
Earnings Per Common Share, basic   $ 0.32   $ 0.31     $ 0.94   $ 0.96  
Earnings Per Common Share, assuming dilution (1)   $ 0.32   $ 0.31     $ 0.94   $ 0.96  
Dividends Declared per common share   $ 0.13   $ 0.13     $ 0.39   $ 0.39  
     
(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