New Hampshire Thrift Bancshares, Inc. Announces Earnings for Fiscal Year 2010Performance Reflects Loan Growth and Increased Net Interest and Dividend Income
NEWPORT, NH -- (Marketwire - January 28, 2011) - New Hampshire Thrift Bancshares, Inc. (NASDAQ: NHTB), the holding company for Lake Sunapee Bank, fsb (the Bank), today reported consolidated net income for the twelve months ended December 31, 2010 of $7,947,435, or $1.29 per common share (assuming dilution), compared to $6,597,706, or $1.06 per common share (assuming dilution), for same period in 2009, an increase of $1,349,729 or 20.45%. For the quarter ended December 31, 2010, NHTB reported consolidated net income of $2,120,350, or $0.34 per common share (assuming dilution), compared to $1,774,173, or $0.28 per common share (assuming dilution), for the quarter ended December 31, 2009, an increase of $346,177, or 19.15%.
2010 Financial Highlights
- -- Total assets increased $32,452,697, or 3.37%, to $995,053,884 at
December 31, 2010 from $962,601,187 at December 31, 2009.
- -- Net loans increased $50,487,514, or 8.14%, to $670,820,120 at December
31, 2010 from $620,332,606 at December 31, 2009.
- -- In 2010, the Bank originated $341,457,443 in loans, compared to
$309,592,066 in 2009.
- -- The Bank's loan servicing portfolio increased to $370,331,523 at
December 31, 2010 from $352,066,692 at December 31, 2009, an increase
of $18,264,831, or 5.19%.
- -- The Company earned $7,947,435, or $1.29 per common share, assuming
dilution, for the year ended December 31, 2010, compared to
$6,597,706, or $1.06 per common share, assuming dilution, for the year
ended December 31, 2009. Net income available to common stockholders
was $7,341,256 for the year ended December 31, 2010 compared to
$6,103,445 for the same period in 2009.
- -- Net interest and dividend income for the year ended December 31, 2010
increased $1,604,271, or 5.87%, to $28,912,231 from $27,307,960 for the
same period in 2009.
- -- The Company's returns on average assets and average equity for the
twelve months ended December 31, 2010 were 0.79% and 8.71%,
respectively, compared to 0.73% and 7.75%, respectively, for the same
period in 2009.
Earnings Summary
Net income of $7,947,435 for the twelve months ended December 31, 2010 includes an increase of $1,604,272, or 5.87%, in net interest and dividend income. The provision for loan losses decreased $3,770,000, or 63.34%, to $2,182,000 for the twelve months ended December 31, 2010 compared to $5,952,000 for the same period in 2009. Noninterest income decreased $2,571,792, or 20.02%, to $10,274,243 for the twelve months ended December 31, 2010 compared to $12,846,035 for the same period in 2009. This decrease includes decreases of $1,565,885 in net gains on sales and calls of securities, $859,213 in net gains on the sales of loans and $239,190 in customer service fees. Noninterest expense increased $1,021,714, or 4.17%, to $25,513,494 for the twelve months ended December 31, 2010 compared to $24,491,780 for the same period in 2009. Within noninterest expense, salaries and employee benefits increased $1,012,294, or 8.19%, to $13,370,442 for the twelve months ended December 31, 2010 compared to $12,358,148 for the same period in 2009. During 2010, the Company's tax-exempt investments and loans increased resulting in a lower effective tax rate which was offset by the recorded interest income on lower-rate tax-exempt investments and loans.
Net income of $2,120,350 for the quarter ended December 31, 2010 includes a decrease of $614,459, or 8.49%, in net interest and dividend income. The provision for loan losses decreased $2,464,000 to $162,000 for the quarter ended December 31, 2010 compared to $2,626,000 for the same period in 2009. Noninterest income decreased $1,529,283, or 35.83%, to $2,738,397 for the quarter ended December 31, 2010 compared to $4,267,680 for the same period in 2009. This decrease includes a decrease of $1,654,190 in net gains on sales and calls of securities, an increase of $281,441 in net gains on the sales of loans and a decrease of $130,275 in customer service fees. Noninterest expense increased $17,664, or 0.28%, to $6,350,860 for the quarter ended December 31, 2010 compared to $6,333,196 for the same period in 2009.
Balance Sheet Summary
Total assets were $995,053,884 at December 31, 2010, compared to $962,601,187 at December 31, 2009, an increase of 3.37%. Securities available-for-sale decreased $22,308,586 to $195,984,515 at December 31, 2010 from $218,293,101. Within the securities available-for-sale portfolio, the book values of (i) U.S. government bonds increased $3,995,816, (ii) mortgage-backed securities decreased $52,020,262, (iii) municipal bonds increased $31,502,223, (iv) other bonds and debentures decreased $4,752,332, (v) preferred stock with maturities decreased $1,554,150, and (vi) equity securities remained at $494,666. Net unrealized losses on the securities available-for-sale were $317,373 at December 31, 2010 compared to $837,491 at December 31, 2009.
Net loans held in portfolio increased $50,487,514, or 8.14%, to $670,820,120 at December 31, 2010, from $620,332,606 at December 31, 2009. The allowance for loan losses increased $345,272 to $9,863,904 at December 31, 2010, from $9,518,632 at December 31, 2009. The change in the allowance for loan losses is the net of effect of provisions of $2,182,000, charge-offs of $1,877,426, recoveries of $215,698 and a one-time transfer of $175,000 to off-balance sheet liabilities. Non-performing loans as a percentage of total loans amounted to 1.46% at December 31, 2010 compared to 0.98% at December 31, 2009.
Total loan production for the twelve months ended December 31, 2010 was $341,457,443 compared to $309,592,066 for the twelve months ended December 31, 2009. Due primarily to loan interest rates and refinancing demands, loan production during the fourth quarter of 2010 increased $61,445,910, or 101.46%, to $122,006,169 compared to the same period in 2009.
Total deposits increased $43,790,349, or 5.96%, to $778,219,117 at December 31, 2010 from $734,428,768 at December 31, 2009. Within deposits, savings and money market accounts increased $4,706,171, transaction accounts increased $28,255,504 and time deposits increased $10,828,674. Advances from the Federal Home Loan Bank decreased $20,002,645, or 20.84%, from $95,962,006 at December 31, 2009 to $75,959,361 at December 31, 2010.
Stockholders' equity of $92,391,419 resulted in a book value of $14.26 per common share at December 31, 2010 based on 5,773,772 shares of common stock outstanding, an increase of $0.78, or 5.79%, per common share from a year ago. As previously announced, a regular quarterly dividend of $0.13 per share is payable on January 28, 2011 to stockholders of record of January 21, 2011. The Bank remains well-capitalized with a Tier I (Core) Capital ratio of 8.28% at December 31, 2010.
2011 Annual Meeting
The Company will hold its annual meeting of stockholders on May 12, 2011.
About New Hampshire Thrift Bancshares, Inc.
New Hampshire Thrift Bancshares, Inc. is the parent company of Lake Sunapee Bank, fsb, a federally-chartered stock savings bank providing a wide range of banking and financial services through twenty-eight offices strategically located within the greater Dartmouth-Lake Sunapee-Kearsarge and Monadnock regions of west-central New Hampshire and central Vermont. New Hampshire Thrift Bancshares, Inc. has total assets of approximately $995 million.
Forward-looking Statements
Statements included in this press release that are not historical or current fact are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. New Hampshire Thrift Bancshares, Inc. disclaims any obligation to subsequently revise 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 or circumstances.
New Hampshire Thrift Bancshares, Inc.
Selected Financial Highlights
For the Years Ended December 31, 2010 2009
----------- -----------
(In thousands, except
per share data)
Net Income $ 7,947 $ 6,598
Per Share Data:
Basic Earnings 1.29 1.06
Diluted Earnings (1) 1.29 1.06
Dividends Paid 0.52 0.52
Dividend Payout Ratio 40.31% 49.06%
Return on Average Assets 0.79% 0.73%
Return on Average Equity 8.71% 7.75%
As of December 31, 2010 2009
----------- -----------
(In thousands, except
share and per share data)
Total Assets $ 995,054 $ 962,601
Total Securities (2) 203,599 224,469
Loans, Net 670,820 620,333
Total Deposits 778,219 734,429
Federal Home Loan Bank Advances 75,959 95,962
Stockholders' Equity 92,391 87,776
Book Value per Common Share $ 14.26 $ 13.48
Shares Outstanding 5,773,772 5,771,772
Tier I (Core) Capital 8.28% 8.45%
Number of Branch Locations 28 28
(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,
held-to-maturity securities at cost and Federal Home Loan Bank stock
at cost.
New Hampshire Thrift Bancshares, Inc.
Consolidated Balance Sheets
As of December 31, 2010 2009
------------- -------------
ASSETS (unaudited)
Cash and due from banks $ 21,512,894 $ 20,338,652
Federal Home Loan Bank overnight deposit 11,700,000 17,700,000
------------- -------------
Total cash and cash equivalents 33,212,894 38,038,652
Securities available-for-sale 195,984,515 218,293,101
Federal Home Loan Bank stock 7,614,600 6,175,800
Loans held-for-sale 5,887,141 2,077,900
Loans receivable, net of the allowance for
loan losses of $9,863,904 as of
December 31, 2010 and $9,518,632 as of
December 31, 2009 670,820,120 620,332,606
Accrued interest receivable 2,986,348 2,972,403
Bank premises and equipment, net 16,671,896 17,034,220
Investments in real estate 3,550,427 3,505,828
Other real estate owned 75,000 100,000
Goodwill 27,293,470 27,293,470
Core deposit intangible 1,550,139 2,023,806
Investment in partially owned Charter
Holding Corp., at equity 4,898,869 3,083,084
Bank-owned life insurance 10,358,288 9,965,068
Other assets 14,150,177 11,705,249
------------- -------------
Total assets $ 995,053,884 $ 962,601,187
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing $ 53,265,124 $ 48,430,291
Interest-bearing 724,953,993 685,998,477
------------- -------------
Total deposits 778,219,117 734,428,768
Federal Home Loan Bank advances 75,959,361 95,962,006
Other borrowings - 2,077,500
Securities sold under agreements to
repurchase 16,165,074 12,118,953
Subordinated debentures 20,620,000 20,620,000
Accrued expenses and other liabilities 11,698,913 9,617,707
------------- -------------
Total liabilities 902,662,465 874,824,934
------------- -------------
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value per share:
2,500,000 shares authorized, 10,000 issued
and outstanding at December 31, 2010,
and December 31, 2009 100 100
Common stock, $.01 par value, per share:
10,000,000 shares authorized,
6,233,051 shares issued and 5,773,772
shares outstanding as of December 31, 2010
and 6,232,051 shares issued and 5,771,772
shares outstanding as of December 31, 2009 62,341 62,321
Warrants 85,020 85,020
Paid-in capital 55,920,664 55,884,604
Retained earnings 46,000,732 41,570,797
Accumulated other comprehensive loss (2,526,715) (2,675,866)
Treasury stock, at cost, 460,279 shares as
of December 31, 2010 and 2009 (7,150,723) (7,150,723)
------------- -------------
Total stockholders' equity 92,391,419 87,776,253
------------- -------------
Total liabilities and stockholders'
equity $ 995,053,884 $ 962,601,187
============= =============
New Hampshire Thrift Bancshares, Inc.
Consolidated Statements of Income
For the Twelve Months Three Months Ended
Ended December 31, December 31,
2010 2009 2010 2009
------------ ------------ ------------ ------------
INTEREST AND DIVIDEND
INCOME (unaudited) (unaudited)
Interest and fees on
loans $ 31,955,755 $ 33,176,044 $ 7,771,582 $ 8,060,744
Interest and
dividends on debt
investments
Taxable 6,596,400 6,131,899 1,215,468 1,741,403
Dividends 17,026 20,689 4,062 10,735
Other 87,351 55,510 49,410 34,014
------------ ------------ ------------ ------------
Total interest and
dividend income 38,656,532 39,384,142 9,040,522 9,846,896
------------ ------------ ------------ ------------
INTEREST EXPENSE
Interest on deposits 6,634,538 8,762,151 1,624,191 1,854,040
Interest on advances
and other borrowed
money 2,039,544 2,098,049 526,425 493,599
Interest expenses on
debentures 1,011,037 1,157,953 253,631 253,462
Interest on
securities sold
under agreements to
repurchase 59,181 58,029 14,723 9,784
------------ ------------ ------------ ------------
Total interest
expense 9,744,300 12,076,182 2,418,970 2,610,885
------------ ------------ ------------ ------------
Net interest and
dividend income 28,912,232 27,307,960 6,621,552 7,236,011
PROVISION FOR LOAN
LOSSES 2,182,000 5,952,000 162,000 2,626,000
------------ ------------ ------------ ------------
Net interest and
dividend income
after provision for
loan losses 26,730,232 21,355,960 6,459,552 4,610,011
------------ ------------ ------------ ------------
OTHER INCOME
Customer service
fees 5,197,963 5,437,153 1,259,336 1,389,611
Net gain on sales
and calls of
securities 2,082,910 3,648,795 425,989 2,080,179
Net gain on sales of
loans 1,692,332 2,551,545 750,134 468,693
Net gain (loss) on
sales of other real
estate owned
and fixed assets 49,603 (9,435) 6,725 3,378
Rental income 700,845 703,572 182,398 186,688
Realized gain in
Charter Holding
Corp. 191,853 106,295 26,157 43,163
Brokerage service
income 2,402 9,832 574 832
Bank owned life
insurance income 356,335 371,930 87,084 92,977
Other income - 26,348 - 2,159
------------ ------------ ------------ ------------
Total noninterest
income 10,274,243 12,846,035 2,738,397 4,267,680
------------ ------------ ------------ ------------
New Hampshire Thrift Bancshares, Inc.
Consolidated Statements of Income (continued)
Twelve Months Ended Three Months Ended
December 31, December 31,
2010 2009 2010 2009
----------- ------------ ----------- -----------
NONINTEREST EXPENSES (unaudited) (unaudited)
Salaries and employee
benefits 13,370,442 12,358,148 3,690,866 3,275,264
Occupancy and
equipment expenses 3,743,232 3,815,924 914,120 892,917
Advertising and
promotion 432,063 376,431 125,693 109,198
Depositors' insurance 1,020,231 1,177,519 238,246 375,916
Professional services 953,355 1,011,861 217,737 304,086
Data processing and
outside services 933,896 917,170 214,605 243,033
ATM processing fees 520,072 614,516 124,331 131,074
Mortgage servicing
(income), net of
amortization of
mortgage servicing
rights (112,965) 121,728 (11,261) (38,802)
Supplies 407,630 387,260 115,283 87,837
Other expenses 4,245,538 3,711,223 721,240 952,673
----------- ------------ ----------- -----------
Total noninterest
expenses 25,513,494 24,491,780 6,350,860 6,333,196
----------- ------------ ----------- -----------
INCOME BEFORE PROVISION
FOR INCOME TAXES 11,490,981 9,710,215 2,847,089 2,544,495
PROVISION FOR INCOME
TAXES 3,543,546 3,112,509 726,739 770,322
----------- ------------ ----------- -----------
NET INCOME $ 7,947,435 $ 6,597,706 $ 2,120,350 $ 1,774,173
=========== ============ =========== ===========
NET INCOME AVAILABLE TO
COMMON STOCKHOLDERS $ 7,431,256 $ 6,103,445 $ 1,990,278 $ 1,644,100
Earnings Per Common
Share, basic $ 1.29 $ 1.06 $ 0.34 $ 0.28
Earnings Per Common
Share, assuming
dilution (1) $ 1.29 $ 1.06 $ 0.34 $ 0.28
Dividends Declared $ 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.
For additional information contact:
Stephen R. Theroux
President
603-863-0886
