New Hampshire Thrift Bancshares, Inc. Announces Earnings for First Quarter and Quarterly Dividend

NEWPORT, NH--(Marketwired - Apr 11, 2013) - 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 three months ended March 31, 2013, of $2.1 million, or $0.27 per common share, assuming dilution, compared to $2.1 million, or $0.31 per common share, assuming dilution, for same period in 2012.

Financial Highlights

• Total assets were $1.2 billion at March 31, 2013, from $1.3 billion at December 31, 2012, a decrease of $39.3 million, or 3.09%.
  
  
• Net loans were $900.1 million at March 31, 2013, from $902.2 million at December 31, 2012, a decrease of $2.1 million, or 0.23%.
  
  
• During the three month period ended March 31, 2012, the Company originated $77.7 million in loans, compared to $72.7 million for the same period in 2012, an increase of $5.0 million, or 6.81%.
  
  
• The Company's loan servicing portfolio was $395.4 million at March 31, 2013, compared to $385.4 million at December 31, 2012.
  
  
• Total deposits were $912.4 million at March 31, 2013, from $949.3 million at December 31, 2012, a decrease of $36.9 million, or 3.89%.
  
  
• Net interest and dividend income for the three month period ended March 31, 2013, was $8.2 million compared to $7.1 million for the same period in 2012, an increase of $1.0 million, or 14.66%.
  
  
• Net income available to common stockholders was $1.9 million for the three month period ended March 31, 2013, compared to $1.8 million for the same period in 2012. Common shares outstanding, assuming dilution, were 7,060,650 at March 31, 2013, compared to 5,844,014 at March 31, 2012, due primarily to the issuance of 1,153,544 shares in conjunction with the acquisition of The Nashua Bank on December 21, 2012.
  
  
• As a percentage of total loans, non-performing loans decreased to 2.00% at March 31, 2013, from 2.22% at December 31, 2012.
  
  

Earnings Summary

Net income of $2.1 million for the three months ended March 31, 2013, includes an increase of $1.0 million, or 14.66%, in net interest and dividend income. The provision for loan losses increased $259 thousand, or 167.10%, to $414 thousand for the three months ended March 31, 2013, compared to $155 thousand for the same period in 2012. Noninterest income was $3.2 million for the three months ended March 31, 2013, compared to $3.3 million for the same period in 2012, a decrease of $158 thousand, or 4.73%. This decrease includes increases of $587 thousand, or 169.65%, in net gains on the sales of loans, $75 thousand, or 18.29%, insurance commission income and $24 thousand, or 23.08%, in bank-owned life insurance income offset by decreases of $984 thousand, or 85.49%, in net gains on sales and calls of securities, $17 thousand, or 1.41%, in customer service fees, and $13 thousand, or 11.71%, in realized gain in Charter Holding Corp; additionally, a net loss on sales of other real estate owned of $181 thousand was recorded during the period in 2012. Noninterest expense increased $710 thousand, or 9.70%, to $8.0 million for the three months ended March 31, 2013, compared to $7.3 million for the same period in 2012. Within noninterest expense, salaries and employee benefits increased $511 thousand, or 13.51%, to $4.3 million for the three months ended March 31, 2013, compared to $3.8 million for the same period in 2012. This includes the additional staffing expenses associated with The Nashua Bank division, which was not part of our expenses during the three months ended March 31, 2012.

Balance Sheet Summary

Total assets were $1.2 billion at March 31, 2013, compared to $1.3 billion at December 31, 2012, a decrease of 39.3 million, or 3.09%. Securities available-for-sale decreased $18.5 million to $193.9 million at March 31, 2013, from $212.4 million at December 31, 2012, as a result of ordinary amortization and our sale of $7.6 million of a mortgage backed investment. Net loans held in portfolio decreased $2.1 million, or 0.23%, to $900.1 million at March 31, 2013, from $902.2 million at December 31, 2012. The allowance for loan losses was $9.8 million at March 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 $400 thousand, charge-offs of $734 thousand, and recoveries of $180 thousand. As a percentage of total loans, non-performing loans decreased from 2.22% at December 31, 2012, to 2.00% at March 31, 2013. Total loan production for the three months ended March 31, 2013, was $77.7 million compared to $72.7 million for the three months ended March 31, 2012.

Total deposits were $912.4 million at March 31, 2013, from $949.3 million at December 31, 2012, a decrease of $36.9 million, or 3.89%. This decrease in deposits is not an atypical occurrence during our first quarter. Within deposits, savings and money market accounts decreased $9.3 million, transaction accounts decreased $20.0 million and time deposits decreased $5.7 million. Advances from the Federal Home Loan Bank decreased $10.5 million, or 7.36%, to $132.2 million at March 31, 2013, from $142.7 million at December 31, 2012. Securities sold under agreements to repurchase increased $4.7 million, or 32.05%, to $19.3 million at March 31, 2013, from $14.6 million at December 31, 2012.

Stockholders' equity of $130.3 million resulted in a book value of $15.19 per common share at March 31, 2013, based on 7,064,489 shares of common stock outstanding. The Bank remains well-capitalized with a Leverage (Tier I) Capital ratio of 9.28% at March 31, 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

The Company has declared a regular quarterly cash dividend of $0.13 per share payable April 30, 2013, to stockholders of record as of April 23, 2013. 

About New Hampshire Thrift Bancshares, Inc.

New Hampshire Thrift Bancshares, Inc. is the bank holding company of Lake Sunapee Bank, fsb, a federally chartered stock savings bank that provides a wide range of banking and financial services. Lake Sunapee Bank has three wholly owned subsidiaries: Lake Sunapee Financial Services Corp., Lake Sunapee Group, Inc., which owns and maintains all buildings and investment properties, and McCrillis & Eldredge Insurance, Inc., a full-line independent insurance agency acquired in 2012, which offers a complete range of commercial insurance services and consumer products. New Hampshire Thrift Bancshares, Inc., through its direct and indirect subsidiaries, operates 22 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 March 31, 2013.

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 twelve month period 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 the 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 Quarter Ended March 31,			2013				2012
(Dollars in thousands except for per share data)
Net Income			$	2,052			$	2,082
Per Share Data:
	Basic Earnings			0.27				0.31
	Diluted Earnings (1)			0.27				0.31
	Dividends Paid			0.13				0.13
	Dividend Payout Ratio			48.15	%			41.94	%
Return on Average Assets				0.74	%			0.87	%
Return on Average Equity				6.29	%			7.27	%
			As of
(Dollars in thousands except for per share data)			March 31, 2013				December 31, 2012
Total Assets			$	1,231,214			$	1,270,477
Total Securities (2)				203,151				221,875
Loans, Net				900,124				902,236
Total Deposits				912,407				949,341
Federal Home Loan Bank Advances				132,231				142,730
Stockholders' Equity				130,288				129,494
Book Value per Common Share			$	15.19			$	15.09
Common Shares Outstanding				7,064,489				7,055,946
Leverage (Tier I) Capital				9.28	%			8.87	%
Number of Locations				30				30

(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
					March 31,				December 31,
(Dollars in thousands)					2013				2012
ASSETS					(unaudited)
	Cash and due from banks				$	18,359			$	26,147
	Overnight deposits					3,934				13,265
			Total cash and cash equivalents			22,293				39,412
	Securities available-for-sale					193,858				212,369
	Federal Home Loan Bank stock					9,293				9,506
	Loans held-for-sale					8,556				11,983
	Loans receivable, net of the allowance for loan losses of $9.9 million as of March 31, 2013, and $9.1 million as of December 31, 2012					900,124				902,236
	Accrued interest receivable					3,221				2,845
	Bank premises and equipment, net					18,597				17,261
	Investments in real estate					3,892				4,074
	Other real estate owned					102				102
	Goodwill and other intangible assets					38,660				38,811
	Investment in partially owned Charter Holding Corp., at equity					5,013				4,909
	Bank-owned life insurance					19,041				18,905
	Other assets					8,564				8,064
		Total assets			$	1,231,214			$	1,270,477
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
	Deposits:
	Noninterest-bearing				$	69,792			$	74,133
	Interest-bearing					842,615				875,208
	Total deposits					912,407				949,341
	Federal Home Loan Bank advances					132,231				142,730
	Securities sold under agreements to repurchase					19,305				14,619
	Subordinated debentures					20,620				20,620
	Accrued expenses and other liabilities					16,363				13,673
		Total liabilities				1,100,926				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 March 31, 2013, and 20,000 shares issued and outstanding at December 31, 2012
	Common stock, $.01 par value, per share: 10,000,000 shares authorized, 7,490,268 shares issued and 7,064,489 shares outstanding as of March 31, 2013, and 7,486,225 shares issued and 7,055,946 shares outstanding as of December 31, 2012					75				75
	Warrants					-				-
	Paid-in capital					84,028				83,977
	Retained earnings					54,927				53,933
	Accumulated other comprehensive loss					(1,695	)			(1,444	)
	Unearned stock awards					(438	)			(377	)
	Treasury stock, at cost, 425,779 shares as of March 31, 2013, and 430,279 shares as of December 31, 2012					(6,609	)			(6,670	)
		Total stockholders' equity				130,288				129,494
		Total liabilities and stockholders' equity			$	1,231,214			$	1,270,477

New Hampshire Thrift Bancshares, Inc.
Consolidated Statements of Income
			For the Three months Ended
			March 31,			March 31,
(Dollars in thousands except for per share data)			2013			2012
Interest and dividend income
Interest and fees on loans			$	9,181		$	7,707
Interest on debt investments:
Taxable				524			1,144
Dividends				13			17
Other				139			166
Total interest and dividend income				9,857			9,034
Interest expense
Interest on deposits				1,025			1,187
Interest on advances and other borrowed money				684			739
Total interest expense				1,709			1,926
Net interest and dividend income				8,148			7,108
Provision for loan losses				414			155
Net interest and dividend income after provision for loan losses				7,734			6,953
Noninterest income
Customer service fees				1,186			1,203
Gain on sales of securities, net				167			1,151
Net gain on sales of loans				933			346
Loss on other real estate and property owned, net				-			(181	)
Rental income				183			194
Income from equity interest in Charter Holding Corp.				98			111
Insurance and brokerage service income				485			410
Bank-owned life insurance income				128			104
	Total noninterest income			3,180			3,338
Noninterest expenses
Salaries and employee benefits				4,295			3,784
Occupancy expenses				1,076			982
Advertising and promotion				99			127
Depositors' insurance				177			193
Outside services				319			281
Professional services				336			242
ATM processing fees				151			116
Supplies				129			92
Telephone expense				163			214
Other expenses				1,236			1,292
	Total noninterest expense			8,031			7,323
Income before provision for income taxes				2,883			2,968
Provision for income taxes				831			886
Net income			$	2,052		$	2,082
Net income available to common stockholders			$	1,911		$	1,832
Earnings per common share, basic			$	0.27		$	0.31
Earnings per common share, assuming dilution(1)			$	0.27		$	0.31
Dividends declared per common share			$	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.