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

Marketwired

NEWPORT, NH--(Marketwired - Jul 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 six months ended June 30, 2013, of $3.8 million, or $0.52 per diluted common share, compared to $4.1 million, or $0.61 per diluted common share for same period in 2012, a decrease of $248 thousand, or 6.06%. For the quarter ended June 30, 2013, the Company reported consolidated net income of $1.8 million, or $0.25 per diluted common share compared to $2.0 million, or $0.30 per diluted common share, for the quarter ended June 30, 2012, a decrease of $215 thousand, or 10.71%. The decrease of earnings during the six- and three-month periods are in part due to non-recurring expenses associated with the pending acquisition of Charter Holding Corp. and Central Financial Corporation. President and Chief Executive Officer, Steve Theroux, stated, "We are pleased with the results of the second quarter considering the costs incurred associated with the pending acquisitions of Charter Holding Corp. and Central Financial Corporation. These investments in our future will provide the opportunity to offer more customers access to comprehensive financial solutions with experienced well-respected providers."

Financial Highlights

  • Total assets were $1.2 billion at June 30, 2013, from $1.3 billion at December 31, 2012, a decrease of $50.5 million, or 3.97%.

  • Net loans were $909.6 million at June 30, 2013, from $902.2 million at December 31, 2012, an increase of $7.3 million, or 0.81%.

  • During the six months ended June 30, 2013, the Company originated $177.5 million in loans compared to $206.8 million for the same period in 2012. During the quarter ended June 30, 2013, the Company originated $99.8 million in loans compared to $134.1 million for the same period in 2012.

  • The Company's loan servicing portfolio was $405.1 million at June 30, 2013, compared to $385.4 million at December 31, 2012.

  • Total deposits were $912.4 million at June 30, 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 six months ended June 30, 2013, was $16.0 million compared to $14.4 million for the same period in 2012, an increase of $1.6 million, or 10.53%. Net interest and dividend income for the quarter ended June 30, 2013, was $7.8 million compared to $7.3 million for the same period in 2012, an increase of $480 thousand, or 6.54%.

  • Net income available to common stockholders increased $52 thousand to $3.6 million for the six months ended June 30, 2013, compared to the same period in 2012. Common shares outstanding, assuming dilution, were 7,069,896 at June 30, 2013, compared to 5,850,456 at June 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 $1.7 million for the quarter ended June 30, 2013, compared to $1.8 million for the same period in 2012. Common shares outstanding, assuming dilution for the quarter, were 7,079,171 at June 30, 2013, compared to 5,857,022 at June 30, 2012.

Earnings Summary

Net income of $3.8 million for the six months ended June 30, 2013, included an increase of $1.6 million, or 10.53%, in net interest and dividend income. The provision for loan losses decreased $653 thousand, or 53.13%, to $576 thousand for the six months ended June 30, 2013, compared to $1.2 million for the same period in 2012. Noninterest income was $6.6 million for the six months ended June 30, 2013, compared to $6.9 million for the same period in 2012, a decrease of $354 thousand, or 5.11%. This decrease includes increases of: $853 thousand, or 112.98%, in net gains on the sales of loans; $15 thousand, or 6.47%, in realized gain in Charter Holding Corp.; $113 thousand, or 16.01%, in insurance commission income; and $43 thousand, or 18.45%, in bank-owned life insurance income, offset by decreases of $1.5 million, or 66.38%, in net gains on sales and calls of securities and $7 thousand, or 0.29%, in customer service fees. Additionally, a net gain on sales of other real estate owned and property owned of $28 thousand was recorded during the six months ended June 30, 2013, compared to a net loss on sales of other real estate owned of $150 thousand during the same period in 2012. Noninterest expense increased $2.0 million, or 14.19%, to $16.3 million for the six months ended June 30, 2013, compared to $14.3 million for the same period in 2012. Expenses for the six months ended June 30, 2013, includes $454 thousand of non-recurring expenses associated with the acquisition of Central Financial Corporation. Within noninterest expense, salaries and employee benefits increased $937 thousand, or 12.56%, to $8.4 million for the six months ended June 30, 2013, compared to $7.5 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 six months ended June 30, 2012. Despite lower income before provision for income taxes, the provision for income taxes was $41 thousand higher for the six months ended June 30, 2013, compared to the same period in 2012, due in significant part to the non-tax-deductibility of $454 thousand of previously referenced non-recurring expenses related to the acquisition of Central Financial Corp.

Net income of $1.8 million for the quarter ended June 30, 2013, included an increase of $480 thousand, or 6.54%, in net interest and dividend income. The provision for loan losses decreased $912 thousand, or 84.92%, to $162 thousand for the quarter ended June 30, 2013, compared to $1.1 million for the same period in 2012. Noninterest income was $3.4 million for the quarter ended June 30, 2013, compared to $3.6 million for the same period in 2012, a decrease of $195 thousand, or 5.43%. This decrease includes increases of: $13 thousand, or 1.04%, in customer service fees; $265 thousand, or 63.57%, in net gains on the sales of loans; $28 thousand, or 24.35%, in realized gain in Charter Holding Corp.; $37 thousand, or 12.50%, in insurance commission income; and $18 thousand, or 13.95%, in bank-owned life insurance income, offset by a decrease of $559 thousand, or 47.66%, in net gains on sales and calls of securities. Noninterest expense increased $1.3 million, or 18.95%, to $8.3 million for the quarter ended June 30, 2013, compared to $7.0 million for the same period in 2012. Expenses for the quarter ended June 30, 2013, includes $344 thousand of non-recurring expenses associated with the acquisition of Central Financial Corporation. Within noninterest expense, salaries and employee benefits increased $425 thousand, or 11.57%, to $4.1 million for the quarter ended June 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, which was not part of the Company's expenses during the quarter ended June 30, 2012. 

Balance Sheet Summary

Total assets were $1.2 billion at June 30, 2013, compared to $1.3 billion at December 31, 2012, a decrease of $50.5 million, or 3.97%. Securities available-for-sale decreased $61.1 million to $151.3 million at June 30, 2013, from $212.4 million at December 31, 2012, as a result of the sales of $91.4 million of investments, purchases of $52.7 million, and ordinary amortization of mortgage-backed securities. Loans held-for-sale decreased $9.4 million to $2.6 million at June 30, 2013, from $12.0 million at December 31, 2012. Net loans held in portfolio increased $7.3 million, or 0.81%, to $909.6 million at June 30, 2013, from $902.2 million at December 31, 2012. The allowance for loan losses, excluding provisions for overdrafts, was $9.5 million at June 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 $550 thousand, charge-offs of $1.2 million, and recoveries of $298 thousand. Total loan production for the six months ended June 30, 2013, was $177.5 million compared to $206.8 million for the same period in 2012. Total loan production for the quarter ended June 30, 2013, was $99.8 million in loans compared to $134.1 million for the same period in 2012.

Total deposits were $912.4 million at June 30, 2013, from $949.3 million at December 31, 2012, a decrease of $36.9 million, or 3.89%. This decrease reflects the call of $15.0 million of brokered deposits during the six months ended June 30, 2013. Advances from the Federal Home Loan Bank decreased $15.5 million, or 10.86%, to $127.2 million at June 30, 2013, from $142.7 million at December 31, 2012. Securities sold under agreements to repurchase increased $4.3 million, or 29.48%, to $18.9 million at June 30, 2013, from $14.6 million at December 31, 2012.

Stockholders' equity of $129.4 million resulted in a book value of $15.01 per common share at June 30, 2013, based on 7,088,896 shares of common stock outstanding. The Bank remains well-capitalized with a Leverage (Tier I) Capital ratio of 9.24% at June 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 July 11, 2013, the Company announced a regular quarterly cash dividend of $0.13 per share payable July 31, 2013, to stockholders of record as of July 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 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 2011, 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 June 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
June 30,
    For the Six Months Ended
June 30,
 
             
    2013     2012     2013     2012  
(in thousands, except for per share data)                
Net Income   $ 1,796     $ 2,012     $ 3,847     $ 4,094  
Net Income Available to Common Stockholders   $ 1,736     $ 1,762     $ 3,647     $ 3,594  
Per Share Data:                                
  Earnings per common share, basic   $ 0.25     $ 0.30     $ 0.52     $ 0.62  
    Average number of shares, basic     7,077,239       5,847,908       7,068,828       5,841,040  
  Earnings per common share, assuming dilution (1)   $ 0.25     $ 0.30     $ 0.52     $ 0.61  
    Average number of shares, assuming dilution     7,079,171       5,857,022       7,069,896       5,850,456  
  Dividends Paid     0.13       0.13       0.26       0.26  
  Dividend Payout Ratio     52.00 %     43.33 %     50.00 %     42.62 %
                                 
       
    As of  
       
(in thousands, except for per share data)   June 30,
2013
    December 31, 2012  
Total Assets   $ 1,220,005     $ 1,270,477  
Total Securities (2)     160,551       221,875  
Loans, Net     909,552       902,236  
Total Deposits     912,432       949,341  
Federal Home Loan Bank Advances     127,231       142,730  
Stockholders' Equity     129,409       129,494  
Book Value per Common Share   $ 15.01     $ 15.09  
Common Shares Outstanding     7,088,896       7,055,946  
                 
Leverage (Tier I) Capital     9.24 %     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  
   
    June 30,     December 31,  
(in thousands, except for share data)   2013     2012  
ASSETS   (unaudited)          
  Cash and due from banks   $ 18,714     $ 26,147  
  Overnight deposits     32,000       13,265  
      Total cash and cash equivalents     50,714       39,412  
  Securities available-for-sale     151,258       212,369  
  Federal Home Loan Bank stock     9,293       9,506  
  Loans held-for-sale     2,556       11,983  
  Loans receivable, net     909,552       902,236  
  Accrued interest receivable     2,919       2,845  
  Bank premises and equipment, net     18,772       17,261  
  Investments in real estate     3,810       4,074  
  Other real estate owned     -       102  
  Goodwill and other intangible assets     38,471       38,811  
  Investment in partially owned Charter Holding Corp., at equity     5,152       4,909  
  Bank-owned life insurance     19,197       18,905  
  Other assets     8,311       8,064  
    Total assets   $ 1,220,005     $ 1,270,477  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
LIABILITIES                
  Deposits:                
  Noninterest-bearing   $ 80,267     $ 74,133  
  Interest-bearing     832,165       875,208  
  Total deposits     912,432       949,341  
  Federal Home Loan Bank advances     127,231       142,730  
  Securities sold under agreements to repurchase     18,929       14,619  
  Subordinated debentures     20,620       20,620  
  Accrued expenses and other liabilities     11,384       13,673  
    Total liabilities     1,090,596       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 June 30, 2013, and 20,000 shares issued and outstanding at December 31, 2012     -       -  
  Common stock, $.01 par value, per share: 10,000,000 shares authorized, 7,523,225 shares issued and 7,088,896 shares outstanding as of June 30, 2013, and 7,486,225 shares issued and 7,055,946 shares outstanding as of December 31, 2012    


75
     


75
 
  Paid-in capital     84,463       83,977  
  Retained earnings     55,743       53,933  
  Accumulated other comprehensive loss     (3,562 )     (1,444 )
  Unearned stock awards     (437 )     (377 )
  Treasury stock, at cost, 434,329 shares as of June 30, 2013, and 430,279 shares as of December 31, 2012     (6,874 )     (6,670 )
    Total stockholders' equity     129,409       129,494  
    Total liabilities and stockholders' equity   $ 1,220,005     $ 1,270,477  
                 
   
New Hampshire Thrift Bancshares, Inc.  
Consolidated Statements of Income  
(unaudited)  
   
    Three Months Ended   Six Months Ended  
    June 30,   June 30,   June 30,   June 30,  
(in thousands, except for per share data)   2013   2012   2013   2012  
Interest and dividend income                          
Interest and fees on loans   $ 9,025   $ 8,041   $ 18,205   $ 15,748  
Interest on debt investments:                          
Taxable     322     984     810     2,128  
Dividends     10     14     23     31  
Other     175     145     351     310  
Total interest and dividend income     9,532     9,184     19,389     18,217  
                           
Interest expense                          
Interest on deposits     1,081     1,096     2,106     2,283  
Interest on advances and other borrowed money     636     752     1,317     1,488  
Total interest expense     1,717     1,848     3,423     3,771  
                           
Net interest and dividend income     7,815     7,336     15,966     14,446  
                           
Provision for loan losses     162     1,074     576     1,229  
Net interest and dividend income after provision for loan losses     7,653     6,262     15,390     13,217  
                           
Noninterest income                          
Customer service fees     1,267     1,254     2,452     2,459  
Net gain on sales of loans     674     409     1,608     755  
Gain on sales and calls of securities, net     614     1,173     781     2,324  
Gain (loss) on sales of other real estate and                          
property owned, net of writedown     28     31     28     (150 )
Rental income     186     180     368     374  
Income from equity interest in Charter Holding Corp.     143     115     241     226  
Insurance commission income     333     296     819     706  
Bank owned life insurance income     147     129     276     233  
  Total noninterest income     3,392     3,587     6,573     6,927  
                           
Noninterest expenses                          
Salaries and employee benefits     4,100     3,675     8,396     7,459  
Occupancy and equipment expenses     1,052     932     2,154     1,949  
Advertising and promotion     213     128     312     255  
Depositors' insurance     202     205     379     399  
Data processing and outside services     346     267     665     548  
Professional services     317     273     653     515  
ATM processing fees     162     121     313     237  
Supplies     120     94     250     187  
Telephone     172     151     335     365  
Non-deductible acquisition     344     -     454     -  
Other expenses     1,241     1,105     2,393     2,365  
  Total noninterest expenses     8,269     6,951     16,304     14,279  
                           
Income before provision for income taxes     2,776     2,898     5,659     5,865  
                           
Provision for income taxes     981     886     1,812     1,771  
                           
Net income   $ 1,795   $ 2,012   $ 3,847   $ 4,094  
                           
Contact:
For additional information contact:
Stephen R. Theroux
President and CEO
(603) 863-0886

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