KEENE, N.H., April 8, 2002 (PRIMEZONE) -- Granite State Bankshares, Inc. (Nasdaq:GSBI) today announced net earnings for the three months ended March 31, 2002 of $3,336,000 compared to net earnings of $2,657,000 for the three months ended March 31, 2001. Basic earnings per share were $.65 for the three months ended March 31, 2002 compared to $.50 for the three months ended March 31, 2001. Diluted earnings per share were $.63 for the three months ended March 31, 2002 compared to $.49 for the three months ended March 31, 2001, an increase of 28.57%.
Net interest and dividend income for the three months ended March 31, 2002 was $9,973,000 compared with $8,606,000 for the three months ended March 31, 2001. The interest rate spread and net interest margin for the three months ended March 31, 2002 was 3.79% and 4.13%, compared with 3.45% and 3.94% for the three months ended March 31, 2001.
The provision for possible loan losses for the three months ended March 31, 2002 was $225,000 compared with $60,000 for the three months ended March 31, 2001.
Gains on sales of loans in the secondary mortgage market for the three months ended March 31, 2002 were $831,000 compared with $154,000 for the three months ended March 31, 2001. The large increase in 2002 relates to the lower interest rate environment, which encouraged residential borrowers to refinance into fixed rate loan products, which the Company sells in the secondary mortgage market. Since the Company does not expect further significant reductions in market interest rates, management does not expect to realize the same level of gains on sales of loans in the secondary mortgage market during the remaining quarters of 2002 as compared to the first quarter of 2002.
Total assets at March 31, 2002 were $1,054,399,000 compared to $1,018,942,000 at December 31, 2001.
Total nonperforming loans and nonperforming assets were $2,191,000 or 0.21% of total assets at March 31, 2002. At December 31, 2001, total nonperforming loans and nonperforming assets were $3,015,000 or 0.30% of total assets. The allowance for possible loan losses was $7,990,000 or 364.67% of nonperforming loans at March 31, 2002. At December 31, 2001, the allowance for possible loan losses was $8,085,000, or 268.16% of nonperforming loans.
Stockholders' equity at March 31, 2002 and December 31, 2001 was $79,260,000 and $80,537,000, respectively, representing 7.52% 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 months ended March 31, 2002 over the same period in 2001. As previously reported, the Board of Directors approved an increase in the quarterly cash dividend to $.19 per share, an 11.76% increase, and the implementation of a new 10% Stock Repurchase Program. Consistent with its ongoing capital management strategies, the Company expended $1.9 million during the first quarter of 2002 to complete the repurchase of shares under its previous Stock Repurchase Program. Additionally, we are delighted to report that 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. The acquisitions are expected to be accretive to earnings for the remainder of 2002."
Updated Earnings Outlook for 2002
Commenting on the Company's earnings expectations for the remainder of 2002, Chairman and CEO Smith stated, "Although we do not expect to see significant further decreases in interest rates nor the continued high levels of loan originations and gains on sales of loans, in light of the results of operations for the quarter ended March 31, 2002, we are modifying our guidance on estimated diluted earnings per share for the year ended 2002 to be in the range of $2.24 to $2.32."
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)
March 31, December 31,
2002 2001
---------- ----------
(unaudited)
Total assets $1,054,399 $1,018,942
Securities held to maturity 5,006 5,006
Securities available for sale 300,786 274,201
Stock in Federal Home Loan Bank
of Boston 7,773 7,201
Loans held for sale 7,024 14,821
Loans 645,265 655,000
Unearned income 1,047 1,075
Allowance for possible loan
losses 7,990 8,085
Net loans 636,228 645,840
Total nonperforming loans and
nonperforming assets 2,191 3,015
Nonperforming assets as percent
of total assets 0.21% 0.30%
Allowance for possible loan
losses as a percent of
nonperforming loans 364.67% 268.16%
Total deposits $ 733,796 $ 714,143
Securities sold under
agreements to repurchase 80,856 85,013
Other borrowings-Federal Home
Loan Bank of Boston 155,450 135,464
Stockholders' equity 79,260 80,537
Book value per share 15.36 15.38
GRANITE STATE BANKSHARES, INC. and SUBSIDIARY
Selected Operating Statement and Other Data
($ in thousands, except per share data)
Three Months Ended
March 31,
---------------------------
2002 2001
----------- -----------
(unaudited)
Interest and dividend income $ 16,170 $ 17,104
Interest expense 6,197 8,498
----------- -----------
Net interest and dividend income 9,973 8,606
Provision for possible loan losses 225 60
----------- -----------
Net interest and dividend income
after provision for possible
loan losses 9,748 8,546
Net gains (losses) on sales of
securities available for sale (50) 228
Net gains on sales of loans 831 154
Other noninterest income 1,386 1,240
Other noninterest expenses 6,526 5,978
----------- -----------
Earnings before income taxes 5,389 4,190
Income taxes 2,053 1,533
----------- -----------
Net earnings $ 3,336 $ 2,657
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Weighted average shares outstanding
Basic 5,140,811 5,314,478
Diluted 5,300,360 5,419,844
Net earnings per share-basic $ 0.65 $ 0.50
=========== ===========
Net earnings per share-diluted $ 0.63 $ 0.49
=========== ===========
Dividends declared per share $ 0.19 $ 0.17
=========== ===========
Average Balance Sheet Data:
Average loans and loans held
for sale $ 655,547 $ 658,542
=========== ===========
Average interest earning assets $ 979,810 $ 885,533
=========== ===========
Average interest bearing deposits $ 629,567 $ 593,024
=========== ===========
Average interest bearing
liabilities $ 866,583 $ 786,913
=========== ===========
Average stockholders' equity $ 81,927 $ 76,219
=========== ===========
Average assets $ 1,042,240 $ 946,885
=========== ===========
Key Operating Ratios:
Return on Average Assets 1.30% 1.14%
=========== ===========
Return on Average Equity 16.51% 14.14%
=========== ===========
Weighted Average Interest
Rate Spread 3.79% 3.45%
=========== ===========
Net Yield on Average Interest
Earning Assets 4.13% 3.94%
=========== ===========