SOURCE: New Hampshire Thrift Bancshares

October 15, 2013 15:30 ET

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

NEWPORT, NH--(Marketwired - Oct 15, 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 nine months ended September 30, 2013 of $6.4 million, or $0.87 per diluted common share, compared to $6.1 million, or $0.94 per diluted common share for same period in 2012, an increase of $295 thousand, or 4.82%. For the quarter ended September 30, 2013, the Company reported consolidated net income of $2.6 million, or $0.35 per diluted common share, compared to $2.0 million, or $0.32 per diluted common share, for the quarter ended September 30, 2012, an increase of $542 thousand, or 26.70%. The increase of earnings during the nine- and three-month periods are in part due to a mark-to-market recognition related to the acquisition of Charter Holding Corp. offset in part by non-recurring expenses associated with the acquisition of Charter Holding Corp. and the pending acquisition of Central Financial Corporation. 

President and Chief Executive Officer, Steve Theroux, stated, "We are pleased with the results for the third quarter. Despite costs associated with our recent and pending acquisitions, we are encouraged to be able to continue to show positive results. The acquisition of Charter Trust on September 4, 2013, was a significant milestone for us as we build our franchise to provide a full array of financial products and services for customers at any stage of their financial lives."

Financial Highlights

  • Total assets were $1.2 billion at September 30, 2013, from $1.3 billion at December 31, 2012, a decrease of $30.2 million, or 2.38%.

  • Net loans were $950.9 million at September 30, 2013, from $902.2 million at December 31, 2012, an increase of $48.7 million, or 5.39%.

  • During the nine months ended September 30, 2013, the Company originated $294.7 million in loans compared to $323.3 million for the same period in 2012. During the quarter ended September 30, 2013, the Company originated $117.2 million in loans compared to $116.5 million for the same period in 2012.

  • The Company's loan servicing portfolio was $405.3 million at September 30, 2013, compared to $385.4 million at December 31, 2012.

  • Total deposits were $921.4 million at September 30, 2013, from $949.3 million at December 31, 2012, a decrease of $27.9 million, or 2.94%, which includes our call on $15.0 million of brokered deposits.

  • Net interest and dividend income for the nine months ended September 30, 2013 was $24.0 million compared to $21.7 million for the same period in 2012, an increase of $2.3 million, or 10.78%. Net interest and dividend income for the quarter ended September 30, 2013, was $8.1 million compared to $7.3 million for the same period in 2012, an increase of $818 thousand, or 11.27%.

  • Net income available to common stockholders increased $710 thousand to $6.2 million for the nine months ended September 30, 2013, compared to the same period in 2012. Common shares outstanding, assuming dilution, were 7,084,795 at September 30, 2013, compared to 5,866,680 at September 30, 2012, due primarily to the issuance of 1,153,544 shares in conjunction with the acquisition of The Nashua Bank on December 21, 2012. Net income available to common stockholders was $2.5 million for the quarter ended September 30, 2013, compared to $1.9 million for the same period in 2012. Common shares outstanding, assuming dilution for the quarter, were 7,113,611 at September 30, 2013, compared to 5,967,522 at September 30, 2012.

Earnings Summary

Net income of $6.4 million for the nine months ended September 30, 2013, included an increase of $2.3 million, or 10.78%, in net interest and dividend income. The provision for loan losses decreased $1.6 million, or 69.31%, to $694 thousand for the nine months ended September 30, 2013, compared to $2.3 million for the same period in 2012. Noninterest income was $11.1 million for the nine months ended September 30, 2013, compared to $10.8 million for the same period in 2012, an increase of $268 thousand, or 2.47%. This increase includes increases of: $524 thousand, or 34.15%, in net gains on the sales of loans; $1.4 million in a mark-to-market adjustment related to the purchase of Charter Holding Corp.; $679 thousand in trust services income; $122 thousand, or 11.64%, in insurance commission income; and $56 thousand, or 14.97%, in bank-owned life insurance income, offset by a decrease of $2.6 million, or 77.12%, in net gains on sales and calls of securities. Additionally, a net gain on sales of other real estate owned owned of $24 thousand was recorded during the nine months ended September 30, 2013, compared to a net loss on sales of other real estate owned of $150 thousand during the same period in 2012, and a net loss on sales of fixed assets of $14 thousand was recorded during the nine months ended September 30, 2013, compared to no losses on sales of fixed assets during the same period in 2012. Noninterest expense increased $4.3 million, or 19.81%, to $25.8 million for the nine months ended September 30, 2013, compared to $21.5 million for the same period in 2012. Expenses for the nine months ended September 30, 2013, includes $1.3 million of non-recurring expenses associated with the acquisition of Central Financial Corporation and the related conversion and integration of Randolph National Bank. Within noninterest expense, salaries and employee benefits increased $1.8 million, or 16.37%, to $13.0 million for the nine months ended September 30, 2013, compared to $11.2 million for the same period in 2012. This includes ordinary wage increases and increases in benefit costs, as well as the additional staffing expenses associated with The Nashua Bank division, which was not part of the Company's expenses during the nine months ended September 30, 2012. The effective income tax rate was impacted in part by the non-tax-deductibility of $801 thousand of previously referenced non-recurring expenses related to the acquisition of Central Financial Corporation and the non-taxable mark-to-market adjustment of $1.4 million related to the purchase of Charter Holding Corp.

Net income of $2.6 million for the quarter ended September 30, 2013, included an increase of $818 thousand, or 11.27%, in net interest and dividend income. The provision for loan losses decreased $914 thousand, or 88.57%, to $118 thousand for the quarter ended September 30, 2013, compared to $1.0 million for the same period in 2012. Noninterest income was $4.5 million for the quarter ended September 30, 2013, compared to $3.9 million for the same period in 2012, an increase of $622 thousand, or 15.87%. This increase includes increases of: $7 thousand, or 0.54%, in customer service fees; $1.4 million in a mark-to-market adjustment related to the purchase of Charter Holding Corp.; $679 thousand in trust services income; $8 thousand, or 2.33%, in insurance commission income; and $13 thousand, or 9.22%, in bank-owned life insurance income, offset by decreases of $328 thousand, or 42.16%, in net gains on the sales of loans including a periodic impairment of mortgage servicing rights of $140 thousand; $1.1 million, or 100.00%, in net gains on sales and calls of securities; and $19 thousand, or 26.39%, in realized gain on the equity interest in Charter Holding Corp. Additionally, a net loss on the sale of fixed assets of $18 thousand was recorded during the three months ended September 30, 2013, compared to no losses on sales of fixed assets during the same period in 2012. Noninterest expense increased $2.2 million, or 30.85%, to $9.5 million for the quarter ended September 30, 2013, compared to $7.3 million for the same period in 2012. Expenses for the quarter ended September 30, 2013 includes $910 thousand of non-recurring expenses associated with the pending acquisition of Central Financial Corporation. Within noninterest expense, salaries and employee benefits increased $889 thousand, or 24.07%, to $4.6 million for the quarter ended September 30, 2013, compared to $3.7 million for the same period in 2012. This includes ordinary wage increases and increases in benefit expenses, as well as the additional staffing expenses associated with The Nashua Bank division and the more recent addition of salaries and benefit expenses of approximately $350 thousand associated with Charter Holding Corp., which were not part of the Company's expenses during the quarter ended September 30, 2012. 

Balance Sheet Summary

Total assets were $1.2 billion at September 30, 2013, compared to $1.3 billion at December 31, 2012, a decrease of $30.2 million, or 2.38%. Securities available-for-sale decreased $57.6 million to $154.8 million at September 30, 2013, from $212.4 million at December 31, 2012, as a result of the sales of $91.2 million of investments, maturities of $45.0 million, purchases of $104.3 million, and ordinary amortization and pay-downs of $22.8 million. Loans held-for-sale decreased $11.2 million to $818 thousand at September 30, 2013, from $12.0 million at December 31, 2012. Net loans held in portfolio increased $48.7 million, or 5.39%, to $950.9 million at September 30, 2013, from $902.2 million at December 31, 2012. The allowance for loan losses, excluding provisions for overdrafts, was $9.6 million at September 30, 2013, compared to $9.9 million at December 31, 2012. The change in the allowance for loan losses is the net effect of provisions of $650 thousand, charge-offs of $1.4 million, and recoveries of $509 thousand. Total loan production for the nine months ended September 30, 2013, was $294.7 million compared to $323.3 million for the same period in 2012. Total loan production for the quarter ended September 30, 2013, was $117.2 million in loans compared to $116.5 million for the same period in 2012.

Total deposits were $921.4 million at September 30, 2013, from $949.3 million at December 31, 2012, a decrease of $27.9 million, or 2.94%. This decrease includes the call of $15.0 million of brokered deposits during the nine months ended September 30, 2013. Advances from the Federal Home Loan Bank decreased $18.0 million, or 12.61%, to $124.7 million at September 30, 2013, from $142.7 million at December 31, 2012. Securities sold under agreements to repurchase increased $11.3 million, or 77.24%, to $25.9 million at September 30, 2013, from $14.6 million at December 31, 2012.

Stockholders' equity of $131.6 million resulted in a book value of $15.25 per common share at September 30, 2013, based on 7,121,264 shares of common stock outstanding. The Bank remains well-capitalized with a Leverage (Tier I) Capital ratio of 8.82% at September 30, 2013.

Acquisition of Central Financial Corporation

On April 3, 2013, the Company and Central Financial Corporation jointly announced that they entered into a definitive agreement in which the Company will acquire Central Financial Corporation in an all-stock transaction. Following the merger, Central Financial Corporation's wholly owned subsidiary, The Randolph National Bank, will be merged with and into the Bank, with the Bank surviving. Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approval and the approval of Central Financial Corporation's shareholders. The transaction is expected to close in the fourth quarter of 2013.

For additional information, please see the Current Report on Form 8-K filed with the Securities and Exchange Commission on April 3, 2013.

Quarterly Dividend

On October 10, 2013, the Company announced a regular quarterly cash dividend of $0.13 per share payable October 31, 2013, to stockholders of record as of October 24, 2013. 

About New Hampshire Thrift Bancshares, Inc.

New Hampshire Thrift Bancshares, Inc. is the savings and loan holding company of Lake Sunapee Bank, fsb, a federally chartered savings bank that provides a wide range of banking and financial services. Lake Sunapee Bank has four wholly owned subsidiaries: Lake Sunapee Financial Services Corp., Lake Sunapee Group, Inc., which owns and maintains all buildings and investment properties, McCrillis & Eldredge Insurance, Inc., a full-line independent insurance agency, and Charter Holding Corp., which wholly owns Charter Trust Company, a trust services and wealth management company. New Hampshire Thrift Bancshares, Inc., through its direct and indirect subsidiaries, operates 28 locations in New Hampshire in Grafton, Hillsborough, Merrimack and Sullivan counties and 8 locations in Vermont in Rutland and Windsor counties. New Hampshire Thrift Bancshares, Inc. has total assets of approximately $1.2 billion as of September 30, 2013.

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, 2012, 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 Three Months Ended
September 30,
    For the Nine Months Ended
September 30,
 
    2013     2012     2013     2012  
(in thousands, except for per share data)                
Net Income   $ 2,572     $ 2,030     $ 6,419     $ 6,124  
Net Income Available to Common Stockholders   $ 2,515     $ 1,914     $ 6,161     $ 5,508  
Per Share Data:                                
  Earnings per common share, basic   $ 0.35     $ 0.32     $ 0.87     $ 0.94  
  Average number of shares, basic     7,102,893       5,967,522       7,080,299       5,860,169  
  Earnings per common share, assuming dilution (1)   $ 0.35     $ 0.32     $ 0.87     $ 0.94  
  Average number of shares, assuming dilution     7,113,611       5,967,522       7,084,795       5,866,680  
  Dividends Paid     0.13       0.13       0.39       0.39  
  Dividend Payout Ratio     37.14 %     40.63 %     44.83 %     41.49 %
                                 
                                 
    As of  
(in thousands, except for per share data)   September 30, 2013     December 31, 2012  
Total Assets   $ 1,240,234     $ 1,270,477  
Total Securities (2)     164,066       221,875  
Loans, Net     950,902       902,236  
Total Deposits     921,398       949,341  
Federal Home Loan Bank Advances     124,732       142,730  
Stockholders' Equity     131,628       129,494  
Book Value per Common Share   $ 15.25     $ 15.09  
Common Shares Outstanding     7,121,264       7,055,946  
                 
Leverage (Tier I) Capital     8.82 %     8.82 %
                 
Number of Locations:                
  Banking Offices     29       29  
  Insurance Offices     3       2  
  Trust Offices     6       -  
                 
(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  
   
    September 30,     December 31,  
(in thousands, except for share data)   2013     2012  
ASSETS   (unaudited)        
  Cash and due from banks   $ 22,435     $ 26,147  
  Overnight deposits     -       13,265  
    Total cash and cash equivalents     22,435       39,412  
  Securities available-for-sale     154,773       212,369  
  Federal Home Loan Bank stock     9,293       9,506  
  Loans held-for-sale     818       11,983  
  Loans receivable, net     950,902       902,236  
  Accrued interest receivable     2,902       2,845  
  Bank premises and equipment, net     20,247       17,261  
  Investments in real estate     3,723       4,074  
  Other real estate owned     -       102  
  Goodwill and other intangible assets     45,350       38,811  
  Investment in partially owned Charter Holding Corp., at equity     -       4,909  
  Bank-owned life insurance     19,370       18,905  
  Due from broker     583       -  
  Other assets     9,838       8,064  
    Total assets   $ 1,240,234     $ 1,270,477  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
LIABILITIES                
  Deposits:                
  Noninterest-bearing   $ 86,376     $ 74,133  
  Interest-bearing     835,022       875,208  
  Total deposits     921,398       949,341  
  Federal Home Loan Bank advances     124,732       142,730  
  Securities sold under agreements to repurchase     25,911       14,619  
  Subordinated debentures     20,620       20,620  
  Accrued expenses and other liabilities     15,945       13,673  
    Total liabilities     1,108,606       1,140,983  
                 
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 September 30, 2013, and December 31, 2012     -       -  
  Common stock, $.01 par value, per share: 10,000,000 shares authorized, 7,555,593 shares issued and 7,121,264 shares outstanding as of September 30, 2013, and 7,486,225 shares issued and 7,055,946 shares outstanding as of December 31, 2012     76       75  
  Paid-in capital     84,897       83,977  
  Retained earnings     57,336       53,933  
  Unearned stock awards     (566 )     (377 )
  Accumulated other comprehensive loss     (3,369 )     (1,444 )
  Treasury stock, at cost, 434,329 shares as of September 30, 2013, and 430,279 shares as of December 31, 2012     (6,746 )     (6,670 )
    Total stockholders' equity     131,628       129,494  
    Total liabilities and stockholders' equity   $ 1,240,234     $ 1,270,477  
                     
                     
                     
New Hampshire Thrift Bancshares, Inc.  
Consolidated Statements of Income  
(unaudited)  
   
    Three Months Ended   Nine Months Ended  
(in thousands, except for per share data)   September 30, 2013     September 30, 2012   September 30, 2013     September 30, 2012  
Interest and dividend income                              
Interest and fees on loans   $ 9,071     $ 8,305   $ 27,276     $ 24,053  
Interest on debt investments:                              
  Taxable     231       628     1,041       2,757  
  Dividends     16       15     39       47  
  Other     255       134     606       443  
Total interest and dividend income     9,573       9,082     28,962       27,300  
                               
Interest expense                              
Interest on deposits     956       1,072     3,062       3,358  
Interest on advances and other borrowed money     544       755     1,861       2,243  
Total interest expense     1,500       1,827     4,923       5,601  
                               
Net interest and dividend income     8,073       7,255     24,039       21,699  
                               
Provision for loan losses     118       1,032     694       2,261  
Net interest and dividend income after provision for loan losses     7,955       6,223     23,345       19,438  
                               
Noninterest income                              
Customer service fees     1,314       1,307     3,766       3,764  
Net gain on sales of loans     450       778     2,058       1,534  
Gain on sales and calls of securities, net     -       1,091     781       3,415  
Mark-to-Market purchase adjustment     1,369       -     1,369       -  
Gain on sales of other real estate owned, net of writedown     -       -     24       (150 )
Loss on sales of premises and equipment     (18 )     -     (14 )     -  
Rental income     189       186     557       560  
Income from equity interest in Charter Holding Corp.     53       72     294       298  
Trust services income     679       -     679       -  
Insurance commission income     351       343     1,170       1,048  
Brokerage service income     -       1     -       3  
Bank owned life insurance income     154       141     430       374  
  Total noninterest income     4,541       3,919     11,114       10,846  
                               
Noninterest expenses                              
Salaries and employee benefits     4,583       3,694     12,979       11,153  
Occupancy and equipment expenses     1,075       876     3,229       2,767  
Advertising and promotion     159       96     471       350  
Depositors' insurance     195       204     574       603  
Data processing and outside services     338       301     1,003       848  
Professional services     342       404     995       919  
ATM processing fees     153       130     466       367  
Supplies     100       93     350       279  
Telephone     159       146     494       511  
Non-deductible acquisition expenses     347       -     801       -  
Other expenses     2,058       1,323     4,451       3,747  
  Total noninterest expenses     9,509       7,267     25,813       21,544  
                               
Income before provision for income taxes     2,987       2,875     8,646       8,740  
                               
Provision for income taxes     415       845     2,227       2,616  
                               
Net income   $ 2,572     $ 2,030   $ 6,419     $ 6,124  

Contact Information

  • For additional information contact:
    Laura Jacobi
    First Senior Vice President
    Chief Financial Officer
    (603) 863-0886