New Hampshire Thrift Bancshares, Inc. Announces Earnings for Fiscal Year 2013
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 | Three Months Ended | |||||||||||||
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 | Three Months Ended | |||||||||||||
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. |
