New Hampshire Thrift Bancshares, Inc (NASDAQ: NHTB), the holding company for Lake Sunapee Bank, fsb, has reported consolidated net income for the nine months ended September 30, 2013 of $6.4 million, or $0.87 per diluted common share, compared to $6.1 million, or $0.94 per diluted common share for same period in 2012, an increase of $295 thousand, or 4.82%. For the quarter ended September 30, 2013, the Company reported consolidated net income of $2.6 million, or $0.35 per diluted common share, compared to $2.0 million, or $0.32 per diluted common share, for the quarter ended September 30, 2012, an increase of $542 thousand, or 26.70 percent. The increase of earnings during the nine- and three-month periods are in part due to a mark-to-market recognition related to the acquisition of Charter Holding Corp offset in part by non-recurring expenses associated with the acquisition of Charter Holding Corp. and the pending acquisition of Central Financial Corporation.
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 ne t 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 righ ts 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 i ncreases 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.
New Hampshire Thrift Bancshares, Inc.
Selected Financial Highlights
For the Three Months For the Nine Months
Ended Ended
September 30, 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
September 30, December 31,
(in thousands, except for per share data) 2013 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 September September September September
per share data) 30, 2013 30, 2012 30, 2013 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
---------- ----------- ---------- ----------
NEWPORT, NH--(Marketwired - October 15, 2013) - New Hampshire Thrift Bancshares, Inc