NEWPORT, NH--(Marketwired - Oct 15, 2013) - New Hampshire Thrift Bancshares, Inc. (the "Company") (
President and Chief Executive Officer, Steve Theroux, stated, "We are pleased with the results for the third quarter. Despite costs associated with our recent and pending acquisitions, we are encouraged to be able to continue to show positive results. The acquisition of Charter Trust on September 4, 2013, was a significant milestone for us as we build our franchise to provide a full array of financial products and services for customers at any stage of their financial lives."
Financial Highlights
- Total assets were $1.2 billion at September 30, 2013, from $1.3 billion at December 31, 2012, a decrease of $30.2 million, or 2.38%.
- Net loans were $950.9 million at September 30, 2013, from $902.2 million at December 31, 2012, an increase of $48.7 million, or 5.39%.
- During the nine months ended September 30, 2013, the Company originated $294.7 million in loans compared to $323.3 million for the same period in 2012. During the quarter ended September 30, 2013, the Company originated $117.2 million in loans compared to $116.5 million for the same period in 2012.
- The Company's loan servicing portfolio was $405.3 million at September 30, 2013, compared to $385.4 million at December 31, 2012.
- Total deposits were $921.4 million at September 30, 2013, from $949.3 million at December 31, 2012, a decrease of $27.9 million, or 2.94%, which includes our call on $15.0 million of brokered deposits.
- Net interest and dividend income for the nine months ended September 30, 2013 was $24.0 million compared to $21.7 million for the same period in 2012, an increase of $2.3 million, or 10.78%. Net interest and dividend income for the quarter ended September 30, 2013, was $8.1 million compared to $7.3 million for the same period in 2012, an increase of $818 thousand, or 11.27%.
- Net income available to common stockholders increased $710 thousand to $6.2 million for the nine months ended September 30, 2013, compared to the same period in 2012. Common shares outstanding, assuming dilution, were 7,084,795 at September 30, 2013, compared to 5,866,680 at September 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 $2.5 million for the quarter ended September 30, 2013, compared to $1.9 million for the same period in 2012. Common shares outstanding, assuming dilution for the quarter, were 7,113,611 at September 30, 2013, compared to 5,967,522 at September 30, 2012.
Earnings Summary
Net income of $6.4 million for the nine months ended September 30, 2013, included an increase of $2.3 million, or 10.78%, in net interest and dividend income. The provision for loan losses decreased $1.6 million, or 69.31%, to $694 thousand for the nine months ended September 30, 2013, compared to $2.3 million for the same period in 2012. Noninterest income was $11.1 million for the nine months ended September 30, 2013, compared to $10.8 million for the same period in 2012, an increase of $268 thousand, or 2.47%. This increase includes increases of: $524 thousand, or 34.15%, in net gains on the sales of loans; $1.4 million in a mark-to-market adjustment related to the purchase of Charter Holding Corp.; $679 thousand in trust services income; $122 thousand, or 11.64%, in insurance commission income; and $56 thousand, or 14.97%, in bank-owned life insurance income, offset by a decrease of $2.6 million, or 77.12%, in net gains on sales and calls of securities. Additionally, a net gain on sales of other real estate owned owned of $24 thousand was recorded during the nine months ended September 30, 2013, compared to a net loss on sales of other real estate owned of $150 thousand during the same period in 2012, and a net loss on sales of fixed assets of $14 thousand was recorded during the nine months ended September 30, 2013, compared to no losses on sales of fixed assets during the same period in 2012. Noninterest expense increased $4.3 million, or 19.81%, to $25.8 million for the nine months ended September 30, 2013, compared to $21.5 million for the same period in 2012. Expenses for the nine months ended September 30, 2013, includes $1.3 million of non-recurring expenses associated with the acquisition of Central Financial Corporation and the related conversion and integration of Randolph National Bank. Within noninterest expense, salaries and employee benefits increased $1.8 million, or 16.37%, to $13.0 million for the nine months ended September 30, 2013, compared to $11.2 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 nine months ended September 30, 2012. The effective income tax rate was impacted in part by the non-tax-deductibility of $801 thousand of previously referenced non-recurring expenses related to the acquisition of Central Financial Corporation and the non-taxable mark-to-market adjustment of $1.4 million related to the purchase of Charter Holding Corp.
Net income of $2.6 million for the quarter ended September 30, 2013, included an increase of $818 thousand, or 11.27%, in net interest and dividend income. The provision for loan losses decreased $914 thousand, or 88.57%, to $118 thousand for the quarter ended September 30, 2013, compared to $1.0 million for the same period in 2012. Noninterest income was $4.5 million for the quarter ended September 30, 2013, compared to $3.9 million for the same period in 2012, an increase of $622 thousand, or 15.87%. This increase includes increases of: $7 thousand, or 0.54%, in customer service fees; $1.4 million in a mark-to-market adjustment related to the purchase of Charter Holding Corp.; $679 thousand in trust services income; $8 thousand, or 2.33%, in insurance commission income; and $13 thousand, or 9.22%, in bank-owned life insurance income, offset by decreases of $328 thousand, or 42.16%, in net gains on the sales of loans including a periodic impairment of mortgage servicing rights of $140 thousand; $1.1 million, or 100.00%, in net gains on sales and calls of securities; and $19 thousand, or 26.39%, in realized gain on the equity interest in Charter Holding Corp. Additionally, a net loss on the sale of fixed assets of $18 thousand was recorded during the three months ended September 30, 2013, compared to no losses on sales of fixed assets during the same period in 2012. Noninterest expense increased $2.2 million, or 30.85%, to $9.5 million for the quarter ended September 30, 2013, compared to $7.3 million for the same period in 2012. Expenses for the quarter ended September 30, 2013 includes $910 thousand of non-recurring expenses associated with the pending acquisition of Central Financial Corporation. Within noninterest expense, salaries and employee benefits increased $889 thousand, or 24.07%, to $4.6 million for the quarter ended September 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 and the more recent addition of salaries and benefit expenses of approximately $350 thousand associated with Charter Holding Corp., which were not part of the Company's expenses during the quarter ended September 30, 2012.
Balance Sheet Summary
Total assets were $1.2 billion at September 30, 2013, compared to $1.3 billion at December 31, 2012, a decrease of $30.2 million, or 2.38%. Securities available-for-sale decreased $57.6 million to $154.8 million at September 30, 2013, from $212.4 million at December 31, 2012, as a result of the sales of $91.2 million of investments, maturities of $45.0 million, purchases of $104.3 million, and ordinary amortization and pay-downs of $22.8 million. Loans held-for-sale decreased $11.2 million to $818 thousand at September 30, 2013, from $12.0 million at December 31, 2012. Net loans held in portfolio increased $48.7 million, or 5.39%, to $950.9 million at September 30, 2013, from $902.2 million at December 31, 2012. The allowance for loan losses, excluding provisions for overdrafts, was $9.6 million at September 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 $650 thousand, charge-offs of $1.4 million, and recoveries of $509 thousand. Total loan production for the nine months ended September 30, 2013, was $294.7 million compared to $323.3 million for the same period in 2012. Total loan production for the quarter ended September 30, 2013, was $117.2 million in loans compared to $116.5 million for the same period in 2012.
Total deposits were $921.4 million at September 30, 2013, from $949.3 million at December 31, 2012, a decrease of $27.9 million, or 2.94%. This decrease includes the call of $15.0 million of brokered deposits during the nine months ended September 30, 2013. Advances from the Federal Home Loan Bank decreased $18.0 million, or 12.61%, to $124.7 million at September 30, 2013, from $142.7 million at December 31, 2012. Securities sold under agreements to repurchase increased $11.3 million, or 77.24%, to $25.9 million at September 30, 2013, from $14.6 million at December 31, 2012.
Stockholders' equity of $131.6 million resulted in a book value of $15.25 per common share at September 30, 2013, based on 7,121,264 shares of common stock outstanding. The Bank remains well-capitalized with a Leverage (Tier I) Capital ratio of 8.82% at September 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 October 10, 2013, the Company announced a regular quarterly cash dividend of $0.13 per share payable October 31, 2013, to stockholders of record as of October 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 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 28 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 September 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 September 30, |
For the Nine Months Ended September 30, |
||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||
| (in thousands, except for per share data) | |||||||||||||||||
| Net Income | $ | 2,572 | $ | 2,030 | $ | 6,419 | $ | 6,124 | |||||||||
| Net Income Available to Common Stockholders | $ | 2,515 | $ | 1,914 | $ | 6,161 | $ | 5,508 | |||||||||
| Per Share Data: | |||||||||||||||||
| Earnings per common share, basic | $ | 0.35 | $ | 0.32 | $ | 0.87 | $ | 0.94 | |||||||||
| Average number of shares, basic | 7,102,893 | 5,967,522 | 7,080,299 | 5,860,169 | |||||||||||||
| Earnings per common share, assuming dilution (1) | $ | 0.35 | $ | 0.32 | $ | 0.87 | $ | 0.94 | |||||||||
| Average number of shares, assuming dilution | 7,113,611 | 5,967,522 | 7,084,795 | 5,866,680 | |||||||||||||
| Dividends Paid | 0.13 | 0.13 | 0.39 | 0.39 | |||||||||||||
| Dividend Payout Ratio | 37.14 | % | 40.63 | % | 44.83 | % | 41.49 | % | |||||||||
| As of | |||||||||
| (in thousands, except for per share data) | September 30, 2013 | December 31, 2012 | |||||||
| Total Assets | $ | 1,240,234 | $ | 1,270,477 | |||||
| Total Securities (2) | 164,066 | 221,875 | |||||||
| Loans, Net | 950,902 | 902,236 | |||||||
| Total Deposits | 921,398 | 949,341 | |||||||
| Federal Home Loan Bank Advances | 124,732 | 142,730 | |||||||
| Stockholders' Equity | 131,628 | 129,494 | |||||||
| Book Value per Common Share | $ | 15.25 | $ | 15.09 | |||||
| Common Shares Outstanding | 7,121,264 | 7,055,946 | |||||||
| Leverage (Tier I) Capital | 8.82 | % | 8.82 | % | |||||
| Number of Locations: | |||||||||
| Banking Offices | 29 | 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 | ||||||||||
| September 30, | December 31, | |||||||||
| (in thousands, except for share data) | 2013 | 2012 | ||||||||
| ASSETS | (unaudited) | |||||||||
| Cash and due from banks | $ | 22,435 | $ | 26,147 | ||||||
| Overnight deposits | - | 13,265 | ||||||||
| Total cash and cash equivalents | 22,435 | 39,412 | ||||||||
| Securities available-for-sale | 154,773 | 212,369 | ||||||||
| Federal Home Loan Bank stock | 9,293 | 9,506 | ||||||||
| Loans held-for-sale | 818 | 11,983 | ||||||||
| Loans receivable, net | 950,902 | 902,236 | ||||||||
| Accrued interest receivable | 2,902 | 2,845 | ||||||||
| Bank premises and equipment, net | 20,247 | 17,261 | ||||||||
| Investments in real estate | 3,723 | 4,074 | ||||||||
| Other real estate owned | - | 102 | ||||||||
| Goodwill and other intangible assets | 45,350 | 38,811 | ||||||||
| Investment in partially owned Charter Holding Corp., at equity | - | 4,909 | ||||||||
| Bank-owned life insurance | 19,370 | 18,905 | ||||||||
| Due from broker | 583 | - | ||||||||
| Other assets | 9,838 | 8,064 | ||||||||
| Total assets | $ | 1,240,234 | $ | 1,270,477 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| LIABILITIES | ||||||||||
| Deposits: | ||||||||||
| Noninterest-bearing | $ | 86,376 | $ | 74,133 | ||||||
| Interest-bearing | 835,022 | 875,208 | ||||||||
| Total deposits | 921,398 | 949,341 | ||||||||
| Federal Home Loan Bank advances | 124,732 | 142,730 | ||||||||
| Securities sold under agreements to repurchase | 25,911 | 14,619 | ||||||||
| Subordinated debentures | 20,620 | 20,620 | ||||||||
| Accrued expenses and other liabilities | 15,945 | 13,673 | ||||||||
| Total liabilities | 1,108,606 | 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 September 30, 2013, and December 31, 2012 | - | - | ||||||||
| Common stock, $.01 par value, per share: 10,000,000 shares authorized, 7,555,593 shares issued and 7,121,264 shares outstanding as of September 30, 2013, and 7,486,225 shares issued and 7,055,946 shares outstanding as of December 31, 2012 | 76 | 75 | ||||||||
| Paid-in capital | 84,897 | 83,977 | ||||||||
| Retained earnings | 57,336 | 53,933 | ||||||||
| Unearned stock awards | (566 | ) | (377 | ) | ||||||
| Accumulated other comprehensive loss | (3,369 | ) | (1,444 | ) | ||||||
| Treasury stock, at cost, 434,329 shares as of September 30, 2013, and 430,279 shares as of December 31, 2012 | (6,746 | ) | (6,670 | ) | ||||||
| Total stockholders' equity | 131,628 | 129,494 | ||||||||
| Total liabilities and stockholders' equity | $ | 1,240,234 | $ | 1,270,477 | ||||||
| New Hampshire Thrift Bancshares, Inc. | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| (in thousands, except for per share data) | September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||
| Interest and dividend income | ||||||||||||||||
| Interest and fees on loans | $ | 9,071 | $ | 8,305 | $ | 27,276 | $ | 24,053 | ||||||||
| Interest on debt investments: | ||||||||||||||||
| Taxable | 231 | 628 | 1,041 | 2,757 | ||||||||||||
| Dividends | 16 | 15 | 39 | 47 | ||||||||||||
| Other | 255 | 134 | 606 | 443 | ||||||||||||
| Total interest and dividend income | 9,573 | 9,082 | 28,962 | 27,300 | ||||||||||||
| Interest expense | ||||||||||||||||
| Interest on deposits | 956 | 1,072 | 3,062 | 3,358 | ||||||||||||
| Interest on advances and other borrowed money | 544 | 755 | 1,861 | 2,243 | ||||||||||||
| Total interest expense | 1,500 | 1,827 | 4,923 | 5,601 | ||||||||||||
| Net interest and dividend income | 8,073 | 7,255 | 24,039 | 21,699 | ||||||||||||
| Provision for loan losses | 118 | 1,032 | 694 | 2,261 | ||||||||||||
| Net interest and dividend income after provision for loan losses | 7,955 | 6,223 | 23,345 | 19,438 | ||||||||||||
| Noninterest income | ||||||||||||||||
| Customer service fees | 1,314 | 1,307 | 3,766 | 3,764 | ||||||||||||
| Net gain on sales of loans | 450 | 778 | 2,058 | 1,534 | ||||||||||||
| Gain on sales and calls of securities, net | - | 1,091 | 781 | 3,415 | ||||||||||||
| Mark-to-Market purchase adjustment | 1,369 | - | 1,369 | - | ||||||||||||
| Gain on sales of other real estate owned, net of writedown | - | - | 24 | (150 | ) | |||||||||||
| Loss on sales of premises and equipment | (18 | ) | - | (14 | ) | - | ||||||||||
| Rental income | 189 | 186 | 557 | 560 | ||||||||||||
| Income from equity interest in Charter Holding Corp. | 53 | 72 | 294 | 298 | ||||||||||||
| Trust services income | 679 | - | 679 | - | ||||||||||||
| Insurance commission income | 351 | 343 | 1,170 | 1,048 | ||||||||||||
| Brokerage service income | - | 1 | - | 3 | ||||||||||||
| Bank owned life insurance income | 154 | 141 | 430 | 374 | ||||||||||||
| Total noninterest income | 4,541 | 3,919 | 11,114 | 10,846 | ||||||||||||
| Noninterest expenses | ||||||||||||||||
| Salaries and employee benefits | 4,583 | 3,694 | 12,979 | 11,153 | ||||||||||||
| Occupancy and equipment expenses | 1,075 | 876 | 3,229 | 2,767 | ||||||||||||
| Advertising and promotion | 159 | 96 | 471 | 350 | ||||||||||||
| Depositors' insurance | 195 | 204 | 574 | 603 | ||||||||||||
| Data processing and outside services | 338 | 301 | 1,003 | 848 | ||||||||||||
| Professional services | 342 | 404 | 995 | 919 | ||||||||||||
| ATM processing fees | 153 | 130 | 466 | 367 | ||||||||||||
| Supplies | 100 | 93 | 350 | 279 | ||||||||||||
| Telephone | 159 | 146 | 494 | 511 | ||||||||||||
| Non-deductible acquisition expenses | 347 | - | 801 | - | ||||||||||||
| Other expenses | 2,058 | 1,323 | 4,451 | 3,747 | ||||||||||||
| Total noninterest expenses | 9,509 | 7,267 | 25,813 | 21,544 | ||||||||||||
| Income before provision for income taxes | 2,987 | 2,875 | 8,646 | 8,740 | ||||||||||||
| Provision for income taxes | 415 | 845 | 2,227 | 2,616 | ||||||||||||
| Net income | $ | 2,572 | $ | 2,030 | $ | 6,419 | $ | 6,124 | ||||||||
Contact Information:
For additional information contact:
Laura Jacobi
First Senior Vice President
Chief Financial Officer
(603) 863-0886