KEENE, N.H., Oct. 10, 2002 (PRIMEZONE) -- Granite State Bankshares, Inc. (Nasdaq:GSBI) today announced net earnings for the three and nine months ended September 30, 2002 of $3,447,000 and $10,504,000 compared to net earnings of $2,864,000 and $8,251,000 for the three and nine months ended September 30, 2001. Basic earnings per share were $.67 and $2.04 for the three and nine months ended September 30, 2002 compared to $.54 and $1.56 for the three and nine months ended September 30, 2001. Diluted earnings per share were $.65 and $1.97 for the three and nine months ended September 30, 2002 compared to $.53 and $1.52 for the three and nine months ended September 30, 2001, representing increases of 22.64% and 29.61%, respectively.
Net interest and dividend income for the three and nine months ended September 30, 2002 was $9,794,000 and $29,786,000 compared with $9,393,000 and $27,015,000 for the three and nine months ended September 30, 2001. The net interest margin for the three and nine months ended September 30, 2002 was 3.80% and 3.99% compared with 3.92% and 3.94% for the three and nine months ended September 30, 2001.
The provision for possible loan losses for the three and nine months ended September 30, 2002 was $0 and $325,000 compared with $180,000 and $360,000 for the three and nine months ended September 30, 2001.
Gains on sales of loans in the secondary mortgage market for the three and nine months ended September 30, 2002 were $775,000 and $2,087,000 compared with $500,000 and $919,000 for the three and nine months ended September 30, 2001. The large increase in 2002 relates to the continued lower interest rate environment, which encouraged residential borrowers to refinance into fixed rate loan products which the Company sells in the secondary mortgage market.
As a result of the lower interest rate environment during the third quarter of 2002, refinance activity and therefore prepayments on residential mortgage loans increased substantially. As a result of increases in prepayment speeds, the Bank recorded a $375,000 charge related to impairment on its mortgage servicing assets during the three months ended September 30, 2002.
Total assets at September 30, 2002 were $1,107,364,000 compared to $1,018,942,000 at December 31, 2001.
Total nonperforming loans and nonperforming assets were $1,474,000 or 0.13% of total assets at September 30, 2002. At December 31, 2001, total nonperforming loans and nonperforming assets were $3,015,000 or 0.30% of total assets.
Stockholders' equity at September 30, 2002 and December 31, 2001 was $88,905,000 and $80,537,000, respectively, representing 8.03% and 7.90% of total assets, respectively.
Chairman and CEO Charles W. Smith said, "We are pleased to report solid earnings and a significant increase in net earnings and earnings per share for the three and nine months ended September 30, 2002 over the same periods in 2001. As previously reported, effective April 1, 2002, the Company completed its acquisitions of Blake Insurance Agency, Sise Insurance and Sise Financial Services, three insurance agencies all located in Portsmouth, New Hampshire. We believe these acquisitions will enhance the Company's franchise."
Updated Earnings Outlook for 2002
Commenting on the Company's earnings expectations for the remainder of 2002, Chairman and CEO Smith stated: "In light of the results of operations for the three and nine months ended September 30, 2002, we are modifying our guidance on estimated diluted earnings per share for the year ended 2002 to be in the range of $2.53 to $2.63 as compared to the $2.43 to $2.50 range previously reported on July 9, 2002."
Forward-looking Statements
Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which the company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.
The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions which 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.
Granite State Bankshares, Inc. is the parent company for Granite Bank, a New Hampshire state-chartered commercial bank and the largest independent bank in the state of New Hampshire with 19 offices operating throughout southern New Hampshire.
GRANITE STATE BANKSHARES, INC. and SUBSIDIARY Selected Balance Sheet Data ($ in thousands, except per share data) September 30, December 31, 2002 2001 ---------- ------------ (unaudited) Total assets $1,107,364 $1,018,942 Securities held to maturity 5,005 5,006 Securities available for sale 297,598 274,201 Stock in Federal Home Loan Bank of Boston 7,773 7,201 Loans held for sale 19,287 14,821 Loans 632,670 655,000 Unearned income 976 1,075 Allowance for possible loan losses 8,092 8,085 Net loans 623,602 645,840 Total nonperforming loans and nonperforming assets 1,474 3,015 Nonperforming assets as percent of total assets 0.13% 0.30% Allowance for possible loan losses as a percent of nonperforming loans 548.98% 268.16% Total deposits $ 769,011 $ 714,143 Securities sold under agreements to repurchase 89,748 85,013 Other borrowings 155,436 135,464 Stockholders' equity 88,905 80,537 Book value per share 17.13 15.38 GRANITE STATE BANKSHARES, INC. and SUBSIDIARY Selected Operating Statement and Other Data ($ in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, ---------------------- ---------------------- 2002 2001 2002 2001 ---------- ---------- ---------- ---------- (unaudited) (unaudited) Interest and dividend income $ 15,806 $ 17,519 $ 48,010 $ 51,980 Interest expense 6,012 8,126 18,224 24,965 ---------- ---------- ---------- ---------- Net interest and dividend income 9,794 9,393 29,786 27,015 Provision for possible loan losses 0 180 325 360 ---------- ---------- ---------- ---------- Net interest and dividend income after provision for possible loan losses 9,794 9,213 29,461 26,655 Net gains on securities available for sale transactions 54 37 548 457 Net gains on sales of loans 775 500 2,087 919 Other noninterest income 2,256 1,338 5,900 3,891 Other noninterest expenses 7,235 6,489 20,941 18,885 ---------- ---------- ---------- ---------- Earnings before income taxes 5,644 4,599 17,055 13,037 Income taxes 2,197 1,735 6,551 4,786 ---------- ---------- ---------- ---------- Net earnings $ 3,447 $ 2,864 $ 10,504 $ 8,251 ========== ========== ========== ========== Weighted average shares outstanding Basic 5,144,490 5,260,103 5,138,679 5,290,183 Diluted 5,331,962 5,401,308 5,327,841 5,416,488 Net earnings per share-basic $ 0.67 $ 0.54 $ 2.04 $ 1.56 ========== ========== ========== ========== Net earnings per share-diluted $ 0.65 $ 0.53 $ 1.97 $ 1.52 ========== ========== ========== ========== Dividends declared per share $ 0.19 $ 0.17 $ 0.57 $ 0.51 ========== ========== ========== ========== Average Balance Sheet Data: Average loans and loans held for sale $ 654,430 $ 673,942 $ 653,951 $ 665,810 ========== ========== ========== ========== Average interest earning assets $1,021,479 $ 949,588 $ 999,338 $ 916,377 ========== ========== ========== ========== Average interest bearing deposits $ 650,410 $ 611,623 $ 640,382 $ 602,861 ========== ========== ========== ========== Average interest bearing liabilities $ 894,914 $ 839,315 $ 879,557 $ 811,630 ========== ========== ========== ========== Average stockholders' equity $ 88,404 $ 80,103 $ 84,640 $ 78,071 ========== ========== ========== ========== Average assets $1,090,967 $1,013,366 $1,065,730 $ 978,767 ========== ========== ========== ========== Key Operating Ratios: Return on Average Assets 1.25% 1.12% 1.32% 1.13% ========== ========== ========== ========== Return on Average Equity 15.47% 14.18% 16.59% 14.13% ========== ========== ========== ========== Weighted Average Interest Rate Spread 3.47% 3.48% 3.66% 3.47% ========== ========== ========== ========== Net Yield on Average Interest Earning Assets 3.80% 3.92% 3.99% 3.94% ========== ========== ========== ==========