New Hampshire Thrift Bancshares, Inc. Announces Earnings for First Quarter of 2014

Marketwired

NEWPORT, NH--(Marketwired - Apr 14, 2014) - 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, 2014, of $2.1 million, or $0.25 per common share, assuming dilution, compared to $2.1 million, or $0.27 per common share, assuming dilution, for same period in 2013, an increase of $92 thousand, or 4.49%. The weighted average numbers of common shares, assuming dilution, were 8,231,992 and 7,060,234 for the three periods ended March 31, 2014, and 2013, respectively.

"We are pleased by the positive impact of our 2013 acquisitions on earnings during the first quarter of 2014," President and Chief Executive Officer, Steve Theroux, stated. "Amidst a challenging residential market with refinancing demand waning, we experienced an increase in commercial lending which resulted in higher loan production volume during the first quarter compared to the same period last year. We continually strive to enhance our franchise value by taking advantage of our product platforms which offer a full array of financial products and services to benefit customers at any stage of their financial lives."

2013 Financial Highlights

  • Total assets increased $11.6 million, or 0.82%, to $1.4 billion at March 31, 2014, from $1.4 billion at December 31, 2013.

  • Net loans increased $20.9 million, or 1.85%, to $1.2 billion at March 31, 2014, from $1.1 billion at December 31, 2013.

  • In the three months ended March 31, 2014, the Company originated $79.9 million in loans, compared to $77.7 million during to the same period in 2013.

  • The Company's loan servicing portfolio was $413.2 million at March 31, 2014, compared to $417.3 million at December 31, 2013.

  • Total deposits decreased $19.9 million, or 1.83%, to $1.1 billion at March 31, 2014, from $1.1 billion at December 31, 2013. 

  • Net interest and dividend income for the three months ended March 31, 2014, was $10.3 million compared to $8.2 million for the same period in 2013.

  • Net income available to common stockholders was $2.1 million for the three months ended March 31, 2014, compared to $2.0 million for the same period in 2013

  • As a percentage of total loans, non-performing loans decreased to 1.73% at March 31, 2014, from 1.86% at December 31, 2013.

Earnings Summary

Net income of $2.1 million for the three months ended March 31, 2014, includes an increase of $2.1 million, or 25.85%, in net interest and dividend income. The provision for loan losses decreased $414 thousand with no provisions required based on adequacy calculations for the three months ended March 31, 2014, compared to $414 thousand for the same period in 2013. Noninterest income increased $1.2 million, or 37.80%, to $4.4 million for the three months ended March 31, 2014, compared to $3.2 million for the same period in 2013. This increase includes the addition of $2.1 million from trust and investment management fees earned by Charter Trust Company during the three months ended March 31, 2014 and an increase of $252 thousand, or 21.25%, in customer service fees, partially offset by decreases of $159 thousand in net gains on sales and calls of securities, $881 thousand on net gains on sales of loans, and $98 thousand from our former equity position in Charter Holding Corp. 

Noninterest expense increased $3.6 million, or 44.35%, to $11.6 million for the three months ended March 31, 2014, compared to $8.0 million for the same period in 2013. Within noninterest expense, salaries and employee benefits increased $1.7 million, or 39.73%, to $6.0 million for the three months ended March 31, 2014, compared to $4.3 million for the same period in 2013. This increase includes expenses related to additional staff and operations for Charter Trust Company, acquired in September 2013, and The Randolph National Bank and its eight branches, acquired in October 2013, which represent over 85% of the increase in salaries and employees benefits. Occupancy expense increased $502 thousand, or 46.65%, to $1.6 million for the three month period ended March 31, 2014, compared to the same period in 2013. The occupancy expenses from Charter Holding Corp. and former The Randolph National Bank branches represent $205 thousand and $281 thousand, respectively, representing nearly 97% of the increase in occupancy expenses. Depositors' insurance increased $94 thousand, or 53.11%, due to the growth in deposits comparing March 31, 2014 to March 31, 2013. The increase of $384 thousand in outside services for the three months ended March 31, 2014, compared to the same period in 2013 includes $246 thousand related to Charter Trust Company operations and an increase of $65 thousand related to our core processing provider. Amortization of intangible assets increased $243 thousand, or 126.56%, to $435 thousand for the three months ended March 31, 2014, compared to the same period in 2013 due to the additional core deposit intangible from the acquisition of The Randolph National Bank and the customer list intangible from the acquisition of Charter Holding Corp. Other expenses increased $403 thousand to $1.5 million for the three months ended March 31, 2014, including $221 thousand from Charter Trust Company operations and an increase of $80 thousand in tax-qualified contributions.

Balance Sheet Summary

Total assets were $1.4 billion at March 31, 2014, compared to $1.4 billion at December 31, 2013, an increase of $11.6 million, or 0.82%. Securities available-for-sale decreased $11.1 million to $114.1 million at March 31, 2014, from $125.2 million at December 31, 2013. Net loans held in portfolio increased $20.9 million, or 1.85%, to $1.2 billion million at March 31, 2014, from $1.1 billion at December 31, 2013. The allowance for loan losses was $9.8 million at March 31, 2014, compared to $9.8 million at December 31, 2013. The change of $20 thousand in the allowance for loan losses is the net effect of charge-offs of $223 thousand and recoveries of $243 thousand in addition to a net decrease of $3 thousand to the reserve for the overdraft protection program. Additionally, the Bank had a credit mark of $6.5 million at March 31, 2014 related to acquired loan balances of $184.1 million. Total loan production for the three months ended March 31, 2014 was 79.9 million in loans, compared to $77.7 million for the same period in 2013.

Goodwill increased $70 thousand, or 0.16%, to $44.7 million at March 31, 2014, from $44.6 million at December 31, 2013. Intangible assets decreased $435 thousand, or 3.95%, to $10.6 million at March 31, 2014, compared to $11.0 million at December 31, 2013. This reflects amortizations of intangible assets of $435 thousand for the three months ended March 31, 2014.

Total deposits decreased $19.9 million, or 1.83%, to $1.1 billion at March 31, 2014, from $1.1 billion at December 31, 2013. Advances from the Federal Home Loan Bank increased $34.3 million, or 28.14%, to $156.0 million at March 31, 2014, from $121.7 million at December 31, 2013. Securities sold under agreements to repurchase decreased $5.2 million, or 18.71%, to $22.7 million at March 31, 2014 from $27.9 million at December 31, 2013.

Stockholders' equity of $150.8 million resulted in a book value of $15.55 per common share at March 31, 2014, based on 8,219,442 shares of common stock outstanding. The Bank remains well capitalized with a Leverage Capital ratio of 8.42% at March 31, 2014.

Quarterly Dividend

On April 10, 2014, the Company declared a regular quarterly cash dividend of $0.13 per share payable April 30, 2014 to stockholders of record as of April 23, 2014. 

About New Hampshire Thrift Bancshares, Inc.

New Hampshire Thrift Bancshares, Inc. is the holding company of Lake Sunapee Bank, fsb, a federally chartered savings bank that provides a wide range of life-cycle 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 29 offices in New Hampshire in Grafton, Hillsborough, Merrimack and Sullivan counties and 18 offices in Vermont in Orange, Rutland and Windsor counties.

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, 2013, 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 Lake Sunapee 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 March 31,   2014     2013  
(Dollars in thousands except for per share data)                
Net Income   $ 2,143     $ 2,052  
Per Share Data:                
  Basic Earnings     0.25       0.27  
  Diluted Earnings (1)     0.25       0.27  
  Dividends Paid     0.13       0.13  
  Dividend Payout Ratio     52.00 %     48.15 %
                   
    As of  
(Dollars in thousands except for per share data)   March 31, 2014   December 31, 2013  
Total Assets   $ 1,435,469   $ 1,422,207  
Total Securities (2)     123,935     134,998  
Loans, Net     1,155,053     1,134,110  
Total Deposits     1,068,218     1,088,092  
Federal Home Loan Bank Advances     155,986     121,734  
Stockholders' Equity     150,778     149,257  
Book Value per Common Share   $ 15.55   $ 15.37  
Common Shares Outstanding     8,219,442     8,216,747  
               
Leverage (Tier I) Capital     8.42 %   8.29 %
               
Number of Offices:              
  Banking Offices     38     38  
  Insurance Offices     3     3  
  Trust Offices     6     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  
   
    March 31,     December 31,  
(Dollars in thousands)   2014     2013  
ASSETS   (unaudited)        
  Cash and due from banks   $ 20,697     $ 12,005  
  Overnight deposits     15,179       21,573  
      Total cash and cash equivalents     35,876       33,578  
  Interest-bearing time deposits with other banks     1,245       1,743  
  Securities available-for-sale     114,117       125,238  
  Federal Home Loan Bank stock     9,818       9,760  
  Loans held-for-sale     406       680  
  Loans receivable, net of the allowance for loan losses of $9.8 million as of March 31, 2014, and $9.8 million as of December 31, 2013     1,155,053       1,134,110  
  Accrued interest receivable     3,292       2,628  
  Bank premises and equipment, net     24,576       23,842  
  Investments in real estate     3,644       3,681  
  Other real estate owned     1,208       1,343  
  Goodwill     44,702       44,632  
  Intangible assets     10,585       11,020  
  Bank-owned life insurance     19,702       19,544  
  Other assets     11,244       12,071  
    Total assets   $ 1,435,468     $ 1,423,870  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
LIABILITIES                
  Deposits:                
      Noninterest-bearing   $ 94,394     $ 101,446  
      Interest-bearing     973,824       986,646  
      Total deposits     1,068,218       1,088,092  
  Federal Home Loan Bank advances     155,986       121,734  
  Securities sold under agreements to repurchase     22,667       27,885  
  Subordinated debentures     20,620       20,620  
  Accrued expenses and other liabilities     17,201       16,282  
    Total liabilities     1,284,692       1,274,613  
                 
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, 2014, and December 31, 2013     -       -  
  Common stock, $.01 par value per share: 10,000,000 shares authorized, 8,653,771 shares issued and 8,219,442 shares outstanding as of March 31, 2014 and 8,651,076 shares issued and 8,216,747 shares outstanding as of December 31, 2013     87       87  
  Paid-in capital     100,998       100,961  
  Retained earnings     59,363       58,347  
  Accumulated other comprehensive loss     (2,443 )     (2,897 )
  Unearned stock awards     (478 )     (490 )
  Treasury stock, at cost, 434,329 shares as of March 31, 2014 and December 31, 2013     (6,751 )     (6,751 )
    Total stockholders' equity     150,776       149,257  
    Total liabilities and stockholders' equity   $ 1,435,468     $ 1,423,870  
                 
                 
                 
New Hampshire Thrift Bancshares, Inc.
Consolidated Statements of Income (unaudited)
 
    For the Three Months Ended March 31,
(Dollars in thousands except for per share data)   2014     2013
INTEREST AND DIVIDEND INCOME              
  Interest and fees on loans   $ 11,350     $ 9,181
  Interest and dividends on debt investments              
    Taxable     325       524
    Dividends     35       13
    Other     170       139
  Total interest and dividend income     11,880       9,857
               
INTEREST EXPENSE              
  Interest on deposits     1,102       1,025
  Interest on advances and other borrowed money     525       684
  Total interest expense     1,627       1,709
               
  Net interest and dividend income     10,253       8,148
               
PROVISION FOR LOAN LOSSES     -       414
               
  Net interest and dividend income after provision for loan losses     10,253       7,734
               
NONINTEREST INCOME              
  Customer service fees     1,438       1,186
  Net gain on sales and calls of securities     8       167
  Net gain on sales of loans     52       933
  Net gain on sales of premises and equipment     2       -
  Net loss on sales of other real estate owned     (2 )     -
  Rental income     175       183
  Realized gain in Charter Holding Corp.     -       98
  Bank owned life insurance income     149       128
  Insurance commission income     484       485
  Trust and investment management fees     2,076       -
  Total noninterest income     4,382       3,180
               
               
               
    For the Three Months Ended March 31,
(Dollars in thousands except for per share data)   2014   2013
NONINTEREST EXPENSES            
Salaries and employee benefits     6,002     4,295
Occupancy and equipment expenses     1,578     1,076
Advertising and promotion     155     99
Depositors' insurance     271     177
Professional services     272     336
Data processing and outside services     703     319
Telephone     295     163
ATM processing fees     221     151
Supplies     164     129
Amortization of intangible assets     435     192
Other expenses     1,497     1,094
Total noninterest expenses     11,593     8,031
             
INCOME BEFORE PROVISION FOR INCOME TAXES     3,042     2,883
             
PROVISION FOR INCOME TAXES     899     831
             
NET INCOME   $ 2,143   $ 2,052
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS   $ 2,085   $ 1,911
             
Earnings Per Common Share, basic   $ 0.25   $ 0.27
Earnings Per Common Share, assuming dilution (1)   $ 0.25   $ 0.27
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:
Laura Jacobi
First Senior Vice President
Chief Financial Officer
603-863-0886

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