New Hampshire Thrift Bancshares, Inc. Announces Earnings for Fiscal Year 2013

Marketwired

NEWPORT, NH--(Marketwired - Jan 31, 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 twelve months ended December 31, 2013, of $8.4 million, or $1.11 per common share, assuming dilution, compared to $7.8 million, or $1.20 per common share, assuming dilution, for same period in 2012, an increase of $655 thousand, or 8.44%. The weighted average numbers of common shares, assuming dilution, were 7,301,861 and 5,912,051 for the years ended December 31, 2013 and 2012, respectively. Common shares outstanding were 8,216,747 and 7,055,946 at December 31, 2013 and 2012, respectively. For the quarter ended December 31, 2013, the Company reported consolidated net income of $2.0 million, or $0.24 per common share, assuming dilution, compared to $1.6 million, or $0.26 per common share, assuming dilution, for the quarter ended December 31, 2012, an increase of $360 thousand, or 22.02%. The weighted average numbers of common shares, assuming dilution, were 7,943,221 and 6,027,787 for the quarters ended December 31, 2013 and 2012, respectively.

"The operational results for the year ending December 31, 2013, reflect the integration of three transformative transactions for our Company," President and Chief Executive Officer, Steve Theroux, stated. "We are particularly pleased by our continued organic growth, and we are excited to focus our resources to maximize our franchise value. We are in a strong position to leverage our product platforms across companies and grow through our full array of financial products and services to benefit customers at any stage of their financial lives."

2013 Financial Highlights

  • Total assets increased $151.7 million, or 11.94%, to $1.4 billion at December 31, 2013, from $1.3 billion at December 31, 2012.

  • Net loans increased $231.9 million, or 25.70%, to $1.1 billion at December 31, 2013, from $902.2 million at December 31, 2012.

  • In 2013, the Company originated $414.0 million in loans, compared to $426.8 million in 2012.

  • The Company's loan servicing portfolio was $417.3 million at December 31, 2013, compared to $385.4 million at December 31, 2012.

  • Total deposits increased $138.8 million, or 14.62%, to $1.1 billion at December 31, 2013, from $949.3 million at December 31, 2012. 

  • Net interest and dividend income for the year ended December 31, 2013, was $33.8 million compared to $29.0 million for the same period in 2012.

  • Net income available to common stockholders was $8.1 million for the year ended December 31, 2013, compared to $7.1 million for the same period in 2012 

  • As a percentage of total loans, non-performing loans decreased to 1.97% at December 31, 2013, from 2.22% at December 31, 2012.

Earnings Summary

Net income of $8.4 million for the twelve months ended December 31, 2013, includes an increase of $4.8 million, or 16.39%, in net interest and dividend income. The provision for loan losses decreased $1.7 million to $962 thousand for the twelve months ended December 31, 2013, compared to $2.7 million for the same period in 2012. Noninterest income increased $1.0 million, or 7.14%, to $15.7 million for the twelve months ended December 31, 2013, compared to $14.6 million for the same period in 2012. This increase includes the addition of $2.7 million from trust and investment services income earned by Charter Trust Company since the acquisition in September of 2013 and a mark-to-market adjustment of $1.4 million related to the same acquisition partially offset by decreases of $2.9 million in net gains on sales and calls of securities and $643 thousand on net gains on sales of loans. Noninterest expense increased $7.4 million, or 25.23%, to $37.0 million for the twelve months ended December 31, 2013, compared to $29.5 million for the same period in 2012. Within noninterest expense, salaries and employee benefits increased $4.2 million, or 27.94%, to $19.2 million for the twelve months ended December 31, 2013, compared to $15.0 million for the same period in 2012. This increase reflects the expenses related to additional staff and operations for The Nashua Bank division acquired in December 2012, four months of expenses related to additional staff and operations for Charter Trust Company, and two months of expenses related to staff and operations for The Randolph National Bank and its eight branches, which the Company acquired in October 2013. Merger-related expenses increased $453 thousand, or 38.82%, to $1.6 million for the year ended December 31, 2013, compared to the same period in 2012 representing the costs of acquiring, converting and integrating The Randolph National Bank and Charter Holding Corp. in 2013 and The Nashua Bank in 2012.

Net income of $2.0 million for the quarter ended December 31, 2013, includes an increase of $2.4 million, or 33.06%, in net interest and dividend income compared to the same period in 2012. The provision for loan losses decreased $176 thousand to $268 thousand for the quarter ended December 31, 2013, compared to $444 thousand for the same period in 2012. Noninterest income increased $811 thousand, or 21.55%, to $4.6 million for the quarter ended December 31, 2013, compared to $3.8 million for the same period in 2012. This increase includes increases of $173 thousand in customer service fees, $13 thousand in rental income, the addition of $2.1 million in trust and investment services income, $30 thousand in insurance commission income, and $72 thousand in bank-owned life insurance income offset by decreases of $222 thousand in net gains on sales and calls of securities, $1.2 million in net gain on sales of loans, and $146 thousand in realized gains in Charter Holding Corp. Noninterest expense increased $3.2 million, or 40.51%, to $11.2 million for the quarter ended December 31, 2013, compared to $7.9 million for the same period in 2012, including an increase of $2.4 million of salaries and benefits expenses related to staffing additional locations as a result of the Company's recent acquisitions and the opening of a new branch in the Nashua market during the fourth quarter of 2013. Related to additional locations was an increase in occupancy and equipment expenses of $334 thousand, or 35.65%, for the quarter ended December 31, 2013, compared to the same period in 2012.

Balance Sheet Summary

Total assets were $1.4 billion at December 31, 2013, compared to $1.3 billion at December 31, 2012, an increase of 11.94%. Securities available-for-sale decreased $87.1 million to $125.2 million at December 31, 2013, from $212.4 million at December 31, 2012. Net loans held in portfolio increased $231.9 million, or 25.70%, to $1.1 billion million at December 31, 2013, from $902.2 million at December 31, 2012. This increase in loans includes approximately $131.2 million of loans from the acquisition of The Randolph National Bank. The allowance for loan losses was $9.8 million at December 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 $888 thousand, charge-offs of $1.8 million, and recoveries of $712 thousand in addition to a net increase of $10 thousand to the reserve for the overdraft protection program. Additionally, the Bank had a credit mark of $6.8 million at December 31, 2013 related to acquired loan balances of $191.4 million. Total loan production for the twelve months ended December 31, 2013 was $414.0 million compared to $426.8 million for the twelve months ended December 31, 2012. Loan production during the fourth quarter of 2013 was $119.3 million compared to $103.5 million for the same period in 2012.

Goodwill increased $7.9 million, or 22.47%, to $43.3 million at December 31, 2013, from $35.4 million at December 31, 2012. This increase reflects $3.2 million of goodwill related to the acquisition of Charter Holding Corp. and $4.7 million related to the acquisition of Central Financial Corp., holding company of The Randolph National Bank. Intangible assets increased $7.6 million, or 222.60%, to $11.0 million at December 31, 2013, compared to $3.4 million at December 31, 2012. This reflects a customer list intangible of $4.0 million related to Charter Holding Corp. and a core deposit intangible of $4.6 million related to The Randolph National Bank, net of intangible amortizations of $1.0 million for the year ended December 31, 2013.

Total deposits increased $138.8 million, or 14.62%, to $1.1 billion at December 31, 2013, from $949.3 million at December 31, 2012. This increase in deposits reflects the addition of approximately $148.7 million of deposits from the acquisition of The Randolph National Bank. Advances from the Federal Home Loan Bank decreased $21.0 million, or 14.71%, to $121.7 million at December 31, 2013, from $142.7 million at December 31, 2012.

Stockholders' equity of $149.3 million resulted in a book value of $15.37 per common share at December 31, 2013, based on 8,216,747 shares of common stock outstanding. The Bank remains well-capitalized with a Leverage (Tier I) Capital ratio of 8.39% at December 31, 2013.

Quarterly Dividend

On January 9, 2014, the Company declared a regular quarterly cash dividend of $0.13 per share payable January 31, 2014 to stockholders of record as of January 24, 2014. 

Annual Meeting

The 2014 Annual Meeting of Stockholders will be held on May 8, 2014 at the Lake Sunapee Bank Building, 1868 Room, 9 Main Street, Newport, New Hampshire at 10:00 a.m.

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, 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 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 Years Ended December 31,   2013     2012  
(Dollars in thousands except for per share data)      
Net Income   $ 8,414$     7,759  
Per Share Data:              
  Basic Earnings     1.11     1.20  
  Diluted Earnings (1)     1.11     1.20  
  Dividends Paid     0.52     0.52  
  Dividend Payout Ratio     46.85 %   43.33 %
               
As of December 31,   2013     2012  
(Dollars in thousands except for per share data)      
Total Assets   $ 1,422,207     $ 1,270,477  
Total Securities (2)     134,998       221,875  
Loans, Net     1,134,110       902,236  
Total Deposits     1,088,092       949,341  
Federal Home Loan Bank Advances     121,734       142,730  
Stockholders' Equity     149,257       129,494  
Book Value per Common Share   $ 15.37     $ 15.09  
Common Shares Outstanding     8,216,747       7,055,946  
                 
Leverage (Tier I) Capital     8.39 %     8.87 %
                 
Number of Offices:                
    Banking Offices     38       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  
   
As of December 31,            
(Dollars in thousands)   2013     2012  
ASSETS   (unaudited)        
  Cash and due from banks   $ 13,748     $ 26,147  
  Overnight deposits     21,573       13,265  
      Total cash and cash equivalents     35,321       39,412  
  Securities available-for-sale     125,238       212,369  
  Federal Home Loan Bank stock     9,760       9,506  
  Loans held-for-sale     680       11,983  
  Loans receivable, net of the allowance for loan losses of $9.8 million as of December 31, 2013, and $9.9 million as of December 31, 2012     1,134,110       902,236  
  Accrued interest receivable     2,628       2,845  
  Bank premises and equipment, net     23,842       17,261  
  Investments in real estate     3,681       4,074  
  Other real estate owned     1,343       102  
  Goodwill     43,348       35,395  
  Intangible assets     11,020       3,416  
  Investment in partially owned Charter Holding Corp., at equity     -       4,909  
  Bank-owned life insurance     19,544       18,905  
  Other assets     11,692       8,064  
    Total assets   $ 1,422,207     $ 1,270,477  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
LIABILITIES                
  Deposits:                
      Noninterest-bearing   $ 101,446     $ 74,133  
      Interest-bearing     986,646       875,208  
      Total deposits     1,088,092       949,341  
  Federal Home Loan Bank advances     121,734       142,730  
  Securities sold under agreements to repurchase     27,885       14,619  
  Subordinated debentures     20,620       20,620  
  Accrued expenses and other liabilities     14,619       13,673  
    Total liabilities     1,272,950       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 December 31, 2013, and 23,000 shares issued and outstanding at December 31, 2012     -       -  
  Common stock, $.01 par value, per share: 10,000,000 shares authorized, 8,651,076 shares issued and 8,216,747 shares outstanding as of December 31, 2013, and 7,486,225 shares issued and 7,055,946 shares outstanding as of December 31, 2012     87       75  
  Paid-in capital     100,961       83,977  
  Retained earnings     58,347       53,933  
  Accumulated other comprehensive loss     (2,897 )     (1,444 )
  Unearned stock awards     (490 )     (377 )
  Treasury stock, at cost, 434,329 shares as of December 31, 2013, and 430,279 shares as of December 31, 2012     (6,751 )     (6,670 )
    Total stockholders' equity     149,257       129,494  
    Total liabilities and stockholders' equity   $ 1,422,207     $ 1,270,477  
                 
                 
                 
New Hampshire Thrift Bancshares, Inc.
Consolidated Statements of Income
 
(Dollars in thousands except for per share   For the Twelve Months
Ended December 31,
    Three Months Ended
December 31,
data)   2013   2012     2013     2012
INTEREST AND DIVIDEND INCOME   (unaudited)         (unaudited)     (unaudited)
  Interest and fees on loans   $ 38,034   $ 32,542     $ 10,758     $ 8,489
  Interest and dividends on debt investments                            
  Taxable     1,333     3,223       292       466
  Dividends     52     62       13       15
  Other     857     594       251       135
  Total interest and dividend income     40,276     36,421       11,314       9,105
                             
INTEREST EXPENSE                            
  Interest on deposits     4,055     4,381       993       1,026
  Interest on advances and other borrowed money     1,585     1,944       409       495
  Interest expense on debentures     806     1,027       159       252
  Interest on securities sold under agreements to repurchase     51     47       13       12
  Total interest expense     6,497     7,399       1,574       1,785
                             
  Net interest and dividend income     33,779     29,022       9,740       7,320
                             
PROVISION FOR LOAN LOSSES     962     2,705       268       444
                             
  Net interest and dividend income after provision for loan losses     32,817     26,317       9,472       6,876
                             
NONINTEREST INCOME                            
  Customer service fees     5,239     5,067       1,473       1,300
  Net gain on sales and calls of securities     964     3,819       182       404
  Net gain on sales of loans     2,224     2,867       166       1,333
  Net gain (loss) on sales of other real estate owned and fixed assets     5     (150 )     (5 )     -
  Mark-to-market adjustment on Charter Holding Corp.     1,369     -       -       -
  Rental income     746     736       189       176
  Realized gain in Charter Holding Corp.     294     444       -       146
  Trust and investment services income     2,741     -       2,063       -
  Insurance commission income     1,467     1,315       297       267
  Bank owned life insurance income     639     545       209       137
  Total noninterest income     15,688     14,643       4,574       3,763
                             
                             
(Dollars in thousands except for per share   For the Twelve Months
Ended December 31,
  Three Months Ended
December 31,
 
data)   2013     2012   2013     2012  
NONINTEREST EXPENSES   (unaudited)         (unaudited)     (unaudited)  
Salaries and employee benefits     19,219       15,022     6,240       3,836  
Occupancy and equipment expenses     4,500       3,648     1,271       937  
Advertising and promotion     662       481     192       131  
Depositors' insurance     776       802     202       198  
Professional services     1,265       1,208     270       289  
Data processing and outside services     1,393       1,117     389       268  
Telephone     706       664     212       153  
ATM processing fees     630       498     164       130  
Net (benefit) amortization of mortgage servicing rights and mortgage servicing rights     (40 )     92     (17 )     (4 )
Supplies     454       373     104       94  
Merger related expenses     1,620       1,167     147          
Other expenses     5,779       4,445     1,977       1,904  
Total noninterest expenses     36,964       29,517     11,151       7,936  
                               
INCOME BEFORE PROVISION FOR INCOME TAXES     11,541       11,443     2,895       2,703  
                               
PROVISION FOR INCOME TAXES     3,127       3,684     900       1,068  
                               
NET INCOME   $ 8,414     $ 7,759   $ 1,995     $ 1,635  
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS   $ 8,098     $ 7,093   $ 1,937     $ 1,584  
                               
Earnings Per Common Share, basic   $ 1.11     $ 1.20   $ 0.24     $ 0.26  
Earnings Per Common Share, assuming dilution (1)   $ 1.11     $ 1.20   $ 0.24     $ 0.26  
Dividends Declared per common share   $ 0.52     $ 0.52   $ 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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