New Hampshire Thrift Bancshares, Inc. Announces Earnings for First Quarter and Quarterly Dividend

Marketwired

NEWPORT, NH--(Marketwired - Apr 11, 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 three months ended March 31, 2013, of $2.1 million, or $0.27 per common share, assuming dilution, compared to $2.1 million, or $0.31 per common share, assuming dilution, for same period in 2012.

Financial Highlights

  • Total assets were $1.2 billion at March 31, 2013, from $1.3 billion at December 31, 2012, a decrease of $39.3 million, or 3.09%.

  • Net loans were $900.1 million at March 31, 2013, from $902.2 million at December 31, 2012, a decrease of $2.1 million, or 0.23%.

  • During the three month period ended March 31, 2012, the Company originated $77.7 million in loans, compared to $72.7 million for the same period in 2012, an increase of $5.0 million, or 6.81%.

  • The Company's loan servicing portfolio was $395.4 million at March 31, 2013, compared to $385.4 million at December 31, 2012.

  • Total deposits were $912.4 million at March 31, 2013, from $949.3 million at December 31, 2012, a decrease of $36.9 million, or 3.89%.

  • Net interest and dividend income for the three month period ended March 31, 2013, was $8.2 million compared to $7.1 million for the same period in 2012, an increase of $1.0 million, or 14.66%.

  • Net income available to common stockholders was $1.9 million for the three month period ended March 31, 2013, compared to $1.8 million for the same period in 2012. Common shares outstanding, assuming dilution, were 7,060,650 at March 31, 2013, compared to 5,844,014 at March 31, 2012, due primarily to the issuance of 1,153,544 shares in conjunction with the acquisition of The Nashua Bank on December 21, 2012.

  • As a percentage of total loans, non-performing loans decreased to 2.00% at March 31, 2013, from 2.22% at December 31, 2012.

Earnings Summary

Net income of $2.1 million for the three months ended March 31, 2013, includes an increase of $1.0 million, or 14.66%, in net interest and dividend income. The provision for loan losses increased $259 thousand, or 167.10%, to $414 thousand for the three months ended March 31, 2013, compared to $155 thousand for the same period in 2012. Noninterest income was $3.2 million for the three months ended March 31, 2013, compared to $3.3 million for the same period in 2012, a decrease of $158 thousand, or 4.73%. This decrease includes increases of $587 thousand, or 169.65%, in net gains on the sales of loans, $75 thousand, or 18.29%, insurance commission income and $24 thousand, or 23.08%, in bank-owned life insurance income offset by decreases of $984 thousand, or 85.49%, in net gains on sales and calls of securities, $17 thousand, or 1.41%, in customer service fees, and $13 thousand, or 11.71%, in realized gain in Charter Holding Corp; additionally, a net loss on sales of other real estate owned of $181 thousand was recorded during the period in 2012. Noninterest expense increased $710 thousand, or 9.70%, to $8.0 million for the three months ended March 31, 2013, compared to $7.3 million for the same period in 2012. Within noninterest expense, salaries and employee benefits increased $511 thousand, or 13.51%, to $4.3 million for the three months ended March 31, 2013, compared to $3.8 million for the same period in 2012. This includes the additional staffing expenses associated with The Nashua Bank division, which was not part of our expenses during the three months ended March 31, 2012.

Balance Sheet Summary

Total assets were $1.2 billion at March 31, 2013, compared to $1.3 billion at December 31, 2012, a decrease of 39.3 million, or 3.09%. Securities available-for-sale decreased $18.5 million to $193.9 million at March 31, 2013, from $212.4 million at December 31, 2012, as a result of ordinary amortization and our sale of $7.6 million of a mortgage backed investment. Net loans held in portfolio decreased $2.1 million, or 0.23%, to $900.1 million at March 31, 2013, from $902.2 million at December 31, 2012. The allowance for loan losses was $9.8 million at March 31, 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 $400 thousand, charge-offs of $734 thousand, and recoveries of $180 thousand. As a percentage of total loans, non-performing loans decreased from 2.22% at December 31, 2012, to 2.00% at March 31, 2013. Total loan production for the three months ended March 31, 2013, was $77.7 million compared to $72.7 million for the three months ended March 31, 2012.

Total deposits were $912.4 million at March 31, 2013, from $949.3 million at December 31, 2012, a decrease of $36.9 million, or 3.89%. This decrease in deposits is not an atypical occurrence during our first quarter. Within deposits, savings and money market accounts decreased $9.3 million, transaction accounts decreased $20.0 million and time deposits decreased $5.7 million. Advances from the Federal Home Loan Bank decreased $10.5 million, or 7.36%, to $132.2 million at March 31, 2013, from $142.7 million at December 31, 2012. Securities sold under agreements to repurchase increased $4.7 million, or 32.05%, to $19.3 million at March 31, 2013, from $14.6 million at December 31, 2012.

Stockholders' equity of $130.3 million resulted in a book value of $15.19 per common share at March 31, 2013, based on 7,064,489 shares of common stock outstanding. The Bank remains well-capitalized with a Leverage (Tier I) Capital ratio of 9.28% at March 31, 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

The Company has declared a regular quarterly cash dividend of $0.13 per share payable April 30, 2013, to stockholders of record as of April 23, 2013. 

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 that provides a wide range of banking and financial services. Lake Sunapee Bank has three wholly owned subsidiaries: Lake Sunapee Financial Services Corp., Lake Sunapee Group, Inc., which owns and maintains all buildings and investment properties, and McCrillis & Eldredge Insurance, Inc., a full-line independent insurance agency acquired in 2012, which offers a complete range of commercial insurance services and consumer products. New Hampshire Thrift Bancshares, Inc., through its direct and indirect subsidiaries, operates 22 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 March 31, 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 twelve month period 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 Quarter Ended March 31,   2013     2012  
(Dollars in thousands except for per share data)      
Net Income   $ 2,052     $ 2,082  
Per Share Data:                
  Basic Earnings     0.27       0.31  
  Diluted Earnings (1)     0.27       0.31  
  Dividends Paid     0.13       0.13  
  Dividend Payout Ratio     48.15 %     41.94 %
                 
Return on Average Assets     0.74 %     0.87 %
Return on Average Equity     6.29 %     7.27 %
       
       
    As of  
(Dollars in thousands except for per share data)   March 31, 2013     December 31, 2012  
Total Assets   $ 1,231,214     $ 1,270,477  
Total Securities (2)     203,151       221,875  
Loans, Net     900,124       902,236  
Total Deposits     912,407       949,341  
Federal Home Loan Bank Advances     132,231       142,730  
Stockholders' Equity     130,288       129,494  
Book Value per Common Share   $ 15.19     $ 15.09  
Common Shares Outstanding     7,064,489       7,055,946  
                 
Leverage (Tier I) Capital     9.28 %     8.87 %
                 
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  
   
    March 31,     December 31,  
(Dollars in thousands)   2013     2012  
ASSETS   (unaudited)        
  Cash and due from banks   $ 18,359     $ 26,147  
  Overnight deposits     3,934       13,265  
      Total cash and cash equivalents     22,293       39,412  
  Securities available-for-sale     193,858       212,369  
  Federal Home Loan Bank stock     9,293       9,506  
  Loans held-for-sale     8,556       11,983  
  Loans receivable, net of the allowance for loan losses of $9.9 million as of March 31, 2013, and $9.1 million as of December 31, 2012     900,124       902,236  
  Accrued interest receivable     3,221       2,845  
  Bank premises and equipment, net     18,597       17,261  
  Investments in real estate     3,892       4,074  
  Other real estate owned     102       102  
  Goodwill and other intangible assets     38,660       38,811  
  Investment in partially owned Charter Holding Corp., at equity     5,013       4,909  
  Bank-owned life insurance     19,041       18,905  
  Other assets     8,564       8,064  
    Total assets   $ 1,231,214     $ 1,270,477  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
LIABILITIES                
  Deposits:                
  Noninterest-bearing   $ 69,792     $ 74,133  
  Interest-bearing     842,615       875,208  
  Total deposits     912,407       949,341  
  Federal Home Loan Bank advances     132,231       142,730  
  Securities sold under agreements to repurchase     19,305       14,619  
  Subordinated debentures     20,620       20,620  
  Accrued expenses and other liabilities     16,363       13,673  
    Total liabilities     1,100,926       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 March 31, 2013, and 20,000 shares issued and outstanding at December 31, 2012                
  Common stock, $.01 par value, per share: 10,000,000 shares authorized, 7,490,268 shares issued and 7,064,489 shares outstanding as of March 31, 2013, and 7,486,225 shares issued and 7,055,946 shares outstanding as of December 31, 2012     75       75  
  Warrants     -       -  
  Paid-in capital     84,028       83,977  
  Retained earnings     54,927       53,933  
  Accumulated other comprehensive loss     (1,695 )     (1,444 )
  Unearned stock awards     (438 )     (377 )
  Treasury stock, at cost, 425,779 shares as of March 31, 2013, and 430,279 shares as of December 31, 2012     (6,609 )     (6,670 )
    Total stockholders' equity     130,288       129,494  
    Total liabilities and stockholders' equity   $ 1,231,214     $ 1,270,477  
                     
                     
   
New Hampshire Thrift Bancshares, Inc.  
Consolidated Statements of Income  
   
    For the Three months Ended  
    March 31,   March 31,  
(Dollars in thousands except for per share data)   2013   2012  
Interest and dividend income              
Interest and fees on loans   $ 9,181   $ 7,707  
Interest on debt investments:              
Taxable     524     1,144  
Dividends     13     17  
Other     139     166  
Total interest and dividend income     9,857     9,034  
               
Interest expense              
Interest on deposits     1,025     1,187  
Interest on advances and other borrowed money     684     739  
Total interest expense     1,709     1,926  
               
Net interest and dividend income     8,148     7,108  
               
Provision for loan losses     414     155  
               
Net interest and dividend income after provision for loan losses     7,734     6,953  
               
Noninterest income              
Customer service fees     1,186     1,203  
Gain on sales of securities, net     167     1,151  
Net gain on sales of loans     933     346  
Loss on other real estate and property owned, net     -     (181 )
Rental income     183     194  
Income from equity interest in Charter Holding Corp.     98     111  
Insurance and brokerage service income     485     410  
Bank-owned life insurance income     128     104  
  Total noninterest income     3,180     3,338  
               
Noninterest expenses              
Salaries and employee benefits     4,295     3,784  
Occupancy expenses     1,076     982  
Advertising and promotion     99     127  
Depositors' insurance     177     193  
Outside services     319     281  
Professional services     336     242  
ATM processing fees     151     116  
Supplies     129     92  
Telephone expense     163     214  
Other expenses     1,236     1,292  
  Total noninterest expense     8,031     7,323  
               
Income before provision for income taxes     2,883     2,968  
               
Provision for income taxes     831     886  
               
Net income   $ 2,052   $ 2,082  
               
               
Net income available to common stockholders   $ 1,911   $ 1,832  
               
Earnings per common share, basic   $ 0.27   $ 0.31  
Earnings per common share, assuming dilution(1)   $ 0.27   $ 0.31  
Dividends declared per common share   $ 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:
For additional information contact:
Stephen R. Theroux
President and CEO
603-863-0886
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