Exhibit 99.1
| | |
NEWS RELEASE For Immediate Release | | For additional information contact: Stephen R. Theroux Executive Vice President |
NEW HAMPSHIRE THRIFT BANCSHARES, INC.
ANNOUNCES EARNINGS INCREASED BY 34% IN 2003
Newport, New Hampshire—January 28, 2004—New Hampshire Thrift Bancshares, Inc. (Nasdaq: NHTB), the holding company for Lake Sunapee Bank, fsb, (the Bank) today reported consolidated net income for the year ended December 31, 2003 of $5,771,453 or $2.84 per share (fully diluted) compared to $4,299,988 or $2.19 per share (fully diluted), over 2002, an increase of 34.22%. For the quarter ended December 31, 2003, NHTB recorded net income of $1,312,462 or $0.64 per share (fully diluted) compared to $1,182,045 or $0.60 per share (fully diluted) for the fourth quarter ended 2002, an increase of 11.03%. The Company’s returns on average assets and equity for the year ended December 31, 2003 were 1.15% and 15.83% respectively, compared to 0.88% and 13.94%, respectively, in 2002.
The increase in net income for the year ended December 31, 2003 was primarily the result of a $1,344,210 increase in non-interest income. The increase in non-interest income was driven by the continued low interest rate environment, which has created a sustained demand for mortgage loan refinancings. Because the Bank sells the majority of fixed-rate mortgage loans that it originates with servicing retained, loan fees generated by the sale of loans created by the refinance boom contributed to the majority of the $1,344,210 increase in non-interest income for the year. During the year, the Bank sold $173,000,000 in loans to the secondary market, and realized $1,213,804 of pre-tax gains on the sale of such loans. In addition, the valuation of Mortgage Servicing Rights increased by approximately $600,000 during the year, which also contributed to the increase in non-interest income.
Total assets increased $29,601,308, or 5.96% to $526,246,231 at December 31, 2003 from $496,644,923 at December 31, 2002. Loans increased $22,765,106, or 6.97%, from $326,575,799 at December 31, 2002 to $349,340,905 at December 31, 2003. Sold loans totaled $289,824,810 at December 31, 2003, as compared to $260,774,730 at December 31, 2002, an increase of 11.14%. Proceeds from the sale of loans, the use Federal Funds Sold, and advances from the Federal Home Loan Bank (FHLB) were invested in investment securities, which increased $40,350,801 to $126,178,697 at December 31, 2003, from $85,827,896 at December 31, 2002, an increase of 47.01%. FHLB advances totaled $22,000,000 at December 31, 2003, compared to $0 at December 31, 2002. The Bank took advantage of favorable interest rates on the advances and invested the proceeds of the advances in higher yielding securities. At December 31, 2003, the Bank’s net interest rate spread was 3.96%, compared to 3.63% at December 31, 2002, an increase of 9.09%.
Total deposits and Repurchase Agreements increased $2,920,153 or .67% to $440,840,671 at December 31, 2003 from $437,920,518 at December 31, 2002. Shareholders’ equity of $39,124,596 resulted in a book value of $19.48 per share based on 2,008,690 shares of common stock outstanding at December 31, 2003, an increase of $2.24 per share from a year ago.
As previously announced, a regular quarterly dividend of $0.225 per share, an increase of 25%, is payable on January 30, 2004 to shareholders of record as of January 23, 2004.
New Hampshire Thrift Bancshares, Inc. (NHTB) is the parent company of Lake Sunapee Bank, fsb, a federally-chartered stock savings bank providing a wide range of banking and financial services throughout the Dartmouth-Lake Sunapee-Kearsarge Region of west-central New Hampshire.
This release may contain “forward-looking statements” within the meaning of section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company’s present expectations or beliefs concerning future events. The Company cautions that assumptions which are subject to risks and uncertainties, including, but not limited to, changes in general economic conditions and changing competition which could cause actual future results to differ materially from those indicated herein. The Company has no obligation to update any forward-looking statements upon the occurrence of future events. Further information on these risks factors is included in the Company’s filings with the Securities and Exchange Commission.
New Hampshire Thrift Bancshares, Inc.
Selected Financial Highlights
(unaudited)
| | | | | | | | | | | | |
| | | Three Months Ended
| | Year End
|
| | | 12/31/03
| | 12/31/02
| | 12/31/03
| | 12/31/02
|
Interest Income | | $ | 5,718,654 | | $ | 6,107,061 | | $ | 21,493,692 | | $ | 26,860,376 |
Interest Expense | | | 1,332,143 | | | 2,048,528 | | | 5,705,521 | | | 10,292,884 |
Net Interest Income | | | 4,386,511 | | | 4,058,533 | | | 15,788,171 | | | 16,567,492 |
Provision for Loan Losses | | | 24,999 | | | 30,000 | | | 99,996 | | | 120,000 |
Non-interest Income | | | 1,262,769 | | | 2,201,513 | | | 6,894,751 | | | 5,550,541 |
Operating Expenses (1) | | | 3,525,119 | | | 4,326,045 | | | 13,304,951 | | | 15,222,750 |
Net Income | | | 1,312,462 | | | 1,182,045 | | | 5,771,453 | | | 4,299,988 |
Earnings Per Common Share, basic | | $ | .66 | | $ | .60 | | $ | 2.92 | | $ | 2.20 |
Earnings Per Common Share, assuming dilution (2) | | $ | .64 | | $ | .60 | | $ | 2.84 | | $ | 2.19 |
Dividends Declared | | $ | .18 | | $ | .16 | | $ | .72 | | $ | .64 |
| | | | | | | | |
| | | As of 12/31/03
| | | As of 12/31/02
| |
Total Assets | | $ | 526,246,231 | | | $ | 496,644,923 | |
Loans | | | 349,340,905 | | | | 326,575,799 | |
Reserve for Loan Losses | | | 3,898,650 | | | | 3,875,708 | |
Investment Securities, net | | | 126,178,697 | | | | 85,827,896 | |
Federal Funds Sold | | | 6,418,370 | | | | 32,022,628 | |
Total Deposits and Repurchase Agreements | | | 440,840,671 | | | | 437,920,518 | |
Advances from the Federal Home Loan Bank | | | 22,000,000 | | | | 0 | |
NHTB Capital Trust Preferred | | | 16,400,000 | | | | 16,400,000 | |
Shareholders’ Equity | | | 39,124,596 | | | | 33,765,996 | |
Book Value of Shares Outstanding | | $ | 19.48 | | | $ | 17.24 | |
Tier I Core Capital | | | 7.56 | % | | | 6.96 | % |
Tier I Risk Based Capital | | | 11.87 | % | | | 11.08 | % |
Shares Outstanding | | | 2,008,690 | | | | 1,958,924 | |
Return on Average Assets | | | 1.15 | % | | | 0.88 | % |
Return on Average Equity | | | 15.83 | % | | | 13.94 | % |
Non-performing Loans as a Percentage of Total Assets | | | 0.22 | % | | | 0.10 | % |
