New Hampshire Thrift Bancshares, Inc. Announces Earnings for Fiscal Year 2013NEWPORT, NH -- (Marketwired - January 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 For the Twelve Months Three Months Ended
except for per share Ended December 31, December 31,
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 For the Twelve Months Three Months Ended
except for per share Ended December 31, December 31,
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.
For additional information contact:
Laura Jacobi
First Senior Vice President
Chief Financial Officer
603-863-0886
