New Hampshire Thrift Bancshares, Inc. Announces Earnings for Fiscal Year 2012

New Hampshire Thrift Bancshares, Inc. Announces Earnings for Fiscal Year 2012 
Performance Reflects Loan and Deposit Growth 
NEWPORT, NH -- (Marketwire) -- 02/01/13 --  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, 2012, of $7.8
million, or $1.20 per common share, assuming dilution, compared to
$7.7 million, or $1.20 per common share, assuming dilution, for same
period in 2011, an increase of $90 thousand, or 1.18%. For the
quarter ended December 31, 2012, the Company reported consolidated
net income of $1.6 million, or $0.26 per common share, assuming
dilution, compared to $1.6 million, or $0.24 per common share,
assuming dilution, for the quarter ended December 31, 2011, an
increase of $5 thousand, or 0.31%.  
2012 Financial Highlights  


 
--  Total assets increased $228.7 million, or 21.95%, to $1.3 billion at
    December 31, 2012, from $1.0 billion at December 31, 2011.
    
    
--  Net loans increased $187.3 million, or 26.20%, to $902.2 million at
    December 31, 2012, from $715.0 million at December 31, 2011.
    
    
--  In 2012, the Company originated $426.8 million in loans, compared to
    $289.1 million in 2011.
    
    
--  The Company's loan servicing portfolio was $385.4 million at December
    31, 2012, compared to $365.8 million at December 31, 2011.
    
    
--  Total deposits increased $146.3 million, or 18.22%, to $949.3 million
    at December 31, 2012, from $803.0 million at December 31, 2011.
    
    
--  Net interest and dividend income for the year ended December 31, 2012,
    was $29.0 million compared to $28.5 million for the same period in
    2011.
    
    
--  Net income available to common stockholders was $7.1 million for the
    year ended December 31, 2012, compared to $7.0 million for the same
    period in 2011
    
    
--  The Company's returns on average assets and average equity for the
    twelve months ended December 31, 2012, were 0.84% and 7.51%,
    respectively, compared to 0.74% and 7.96%, respectively, for the same
    period in 2011.
    
    
--  As a percentage of total loans, non-performing loans decreased to
    1.
59% at December 31, 2012, from 2.32% at December 31, 2011.

  
Earnings Summary 
Net income of $7.8 million for the twelve months ended December 31,
2012, includes an increase of $523 thousand, or 1.84%, in net
interest and dividend income. The provision for loan losses increased
$1.3 million, or 100.22%, to $2.7 million for the twelve months ended
December 31, 2012, compared to $1.4 million for the same period in
2011. Noninterest income increased $4.2 million, or 39.69%, to $14.6
million for the twelve months ended December 31, 2012, compared to
$10.5 million for the same period in 2011. This increase includes a
net loss on sales of other real estate owned of $150 thousand and
decreases of $4 thousand in customer service fees and $129 thousand
in realized gain in Charter Holding Corp partially offset by
increases of $1.2 million in net gains on sales and calls of
securities, $1.9 million in net gains on the sales of loans, $1.2
million in insurance commission income and $79 thousand in bank-owned
life insurance income. Noninterest expense increased $2.4 million, or
8.69%, to $29.5 million for the twelve months ended December 31,
2012, compared to $27.1 million for the same period in 2011. Within
noninterest expense, salaries and employee benefits increased $682
thousand, or 4.78%, to $15.0 million for the twelve months ended
December 31, 2012, compared to $14.3 million for the same period in
2011. The Company recorded approximately $1.2 million of expenses
related to the fourth quarter acquisition of The Nashua Bank. 
Net income of $1.6 million for the quarter ended December 31, 2012,
includes an increase of $325 thousand, or 4.64%, in net interest and
dividend income compared to the same period in 2011. The provision
for loan losses increased $77 thousand to $444 thousand for the
quarter ended December 31, 2012, compared to $367 thousand for the
same period in 2011. Noninterest income increased $1.3 million, or
51.23%, to $3.8 million for the quarter ended December 31, 2012,
compared to $2.5 million for the same period in 2011. This increase
includes increases of $20 thousand in customer service fees, $56
thousand in net gains on sales and calls of securities, $965 thousand
in net gain on sales of loans, $13 thousand in rental income, $32
thousand in realized gain in Charter Holding Corp., $146 thousand in
insurance commission income, and $19 thousand in bank-owned life
insurance income. Noninterest expense increased $853 thousand, or
12.04%, to $7.9 million for the quarter ended December 31, 2012,
compared to $7.1 million for the same period in 2011, including
approximately $1.0 million of expenses related to the acquisition of
The Nashua Bank.  
Balance Sheet Summary  
Total assets were $1.3 billion at December 31, 2012, compared to $1.0
billion at December 31, 2011, an increase of 21.95%. Securities
available-for-sale increased $2.1 million to $212.4 million at
December 31, 2012, from $210.3 million at December 31, 2011. Net
loans held in portfolio increased $187.3 million, or 26.20%, to
$902.2 million at December 31, 2012, from $715.0 million at December
31, 2011. This increase in loans includes approximately $91.5 million
of loans from the acquisition of The Nashua Bank. The allowance for
loan losses was $9.9 million at December 31, 2012, compared to $9.1
million at December 31, 2011. The change in the allowance for loan
losses is the net effect of provisions of $2.7 million, charge-offs
of $2.5 million, and recoveries of $596 thousand. As a percentage of
total loans, non-performing loans decreased from 2.32% at December
31, 2011 to 1.59% at December 31, 2012. Total loan production for the
twelve months ended December 31, 2012, was $426.8 million compared to
$289.1 million for the twelve months ended December 31, 2011. Loan
production during the fourth quarter of 2012 was $103.5 million
compared to $93.2 million for the same period in 2011. 
Total deposits increased $146.3 million, or 18.22%, to $949.3 million
at December 31, 2012, from $803.0 million at December 31, 2011. This
increase in deposits includes approximately $94.4 million of deposits
from the acquisition of The Nashua Bank. Within deposits, savings and
money market accounts increased $87.2 million, transaction accounts
increased $41.7 million and time deposits increased $17.4 million.
Advances from the Federal Home Loan Bank increased $61.8 million, or
76.32%, to $142.7 million at December 31, 2012, from $81.0 million at
December 31, 2011.  
Stockholders' equity of $129.5 million resulted in a book value of
$15.09 per common share at December 31, 2012, based on 7,055,946
shares of common stock outstanding. The Bank remains well-capitalized
with a Leverage (Tier I) Capital ratio of 8.87% at December 31, 2012. 
Other Events 
On December 21, 2012, the Company announced it had completed its
acquisition of The Nashua Bank in Nashua, New Hampshire, expanding
the Company's presence in southern New Hampshire. The Company issued
approximately 1.15 million shares of its common stock and paid
approximately $3.68 million in cash to Nashua Bank shareholders in
the transaction. The Nashua Bank now operates under the name "The
Nashua Bank, a division of Lake Sunapee Bank, fsb." 
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
which provides a wide range of banking and financial services
including McCrillis & Eldredge Insurance, Inc., a full-line
independent insurance agency which offers a complete range of
commercial insurance services and consumer products. These wholly
owned subsidiaries operate through 30 banking and insurance 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 $1.3 billion. 
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, 2011, 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 Years Ended December 31,                        2012        2011    
                                                     ----------  ---------- 
(Dollars in thousands except for per share data)                            
Net Income                                           $    7,759  $    7,669 
Per Share Data:                                                             
  Basic Earnings                                           1.20        1.20 
  Diluted Earnings (1)                                     1.20        1.20 
  Dividends Paid                                           0.52        0.52 
  Dividend Payout Ratio                                   43.33%      43.33%
                                                                            
Return on Average Assets                                   0.84%       0.74%
Return on Average Equity                                   7.51%       7.96%
                                                                            
                                                                            
As of December 31,                                      2012        2011    
                                                     ----------  ---------- 
(Dollars in thousands except for per share data)                            
Total Assets                                         $1,270,477  $1,041,819 
Total Securities (2)                                    221,875     217,933 
Loans, Net                                              902,236     714,952 
Total Deposits                                          949,341     803,023 
Federal Home Loan Bank Advances                         142,730      80,967 
Stockholders' Equity                                    129,494     108,660 
Book Value per Common Share                          $    15.09  $    15.20 
Common Shares Outstanding                             7,055,946   5,832,360 
                                                                            
Leverage (Tier I) Capital                                  8.87%       9.75%
                                                                            
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                         
                                                                            
As of December 31,                                                          
(Dollars in thousands)                                 2012         2011    
                                                   -----------  ----------- 
ASSETS                                             (unaudited)              
  Cash and due from banks                          $    26,147  $    21,841 
  Overnight deposits                                    13,265        2,899 
                                                   -----------  ----------- 
      Total cash and cash equivalents                   39,412       24,740 
  Securities available-for-sale                        212,369      210,318 
  Federal Home Loan Bank stock                           9,506        7,615 
  Loans held-for-sale                                   11,983        3,434 
  Loans receivable, net of the allowance for loan                           
   losses of $9.9 million as of December 31, 2012,                          
   and $9.1 million as of December 31, 2011            902,236      714,952 
  Accrued interest receivable                            2,845        2,669 
  Bank premises and equipment, net                      17,261       16,450 
  Investments in real estate                             4,074        3,451 
  Other real estate owned                                  102        1,344 
  Goodwill                                              35,395       28,597 
  Intangible assets                                      3,416        1,755 
  Investment in partially owned Charter Holding                             
   Corp., at equity                                      4,909        4,895 
  Bank-owned life insurance                             18,905       13,347 
  Other assets                                           8,064        8,252 
                                                   -----------  ----------- 
    Total assets                                   $ 1,270,477  $ 1,041,819 
                                                   ===========  =========== 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
LIABILITIES                                                                 
  Deposits:                                                                 
  Noninterest-bearing                              $    74,133  $    64,356 
  Interest-bearing                                     875,208      738,667 
                                                   -----------  ----------- 
  Total deposits                                       949,341      803,023 
  Federal Home Loan Bank advances                      142,730       80,967 
  Other borrowings                                           -          543 
  Securities sold under agreements to repurchase        14,619       15,514 
  Subordinated debentures                               20,620       20,620 
  Accrued expenses and other liabilities                13,673       12,492 
                                                   -----------  ----------- 
    Total liabilities                                1,140,983      933,159 
                                             
      -----------  ----------- 
                                                                            
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, 2012, and 20,000 shares issued                          
       and outstanding at December 31, 2011                  -            - 
  Common stock, $.01 par value, per share:                                  
   10,000,000 shares authorized, 7,486,225 shares                           
   issued and 7,055,946 shares outstanding as of                            
   December 31, 2012, and 6,292,639 shares issued                           
   and 5,832,360 shares outstanding as of December                          
   31, 2011                                                 75           63 
  Warrants                                                   -           85 
  Paid-in capital                                       83,977       66,658 
  Retained earnings                                     53,933       49,892 
  Accumulated other comprehensive loss                  (1,444)        (887)
  Unearned stock awards                                   (377)           - 
  Treasury stock, at cost, 430,279 shares as of                             
   December 31, 2012, and 460,279 shares as of                              
   December 31, 2011                                    (6,670)      (7,151)
                                                   -----------  ----------- 
    Total stockholders' equity                         129,494      108,660 
                                                   -----------  ----------- 
    Total liabilities and stockholders' equity     $ 1,270,477  $ 1,041,819 
                                                   ===========  =========== 
                                                                            
                                                                            
                    New Hampshire Thrift Bancshares, Inc.                   
                      Consolidated Statements of Income                     
                                                                            
                               For the Twelve Months    Three Months Ended  
                                 Ended December 31,        December 31,     
(Dollars in thousands except                                                
 for per share data)              2012        2011        2012       2011   
                              -----------  ---------- ----------- ----------
INTEREST AND DIVIDEND INCOME  (unaudited)             (unaudited)           
  Interest and fees on loans  $    32,542  $   31,640 $     8,489 $    7,844
  Interest and dividends on                                                 
   debt investments                                                         
  Taxable                           3,223       4,601         466        989
  Dividends                            62          35          15          6
  Other                               594         912         135        232
                              -----------  ---------- ----------- ----------
  Total interest and dividend                                               
   income                          36,421      37,188       9,105      9,071
                              -----------  ---------- ----------- ----------
                                                                            
INTEREST EXPENSE                                                            
  Interest on deposits              4,381       5,771       1,026      1,360
  Interest on advances and                                                  
   other borrowed money             1,944       1,863         495        450
  Interest expense on                                                       
   debentures                       1,027       1,008         252        256
  Interest on securities sold                                               
   under agreements to                                                      
   repurchase                          47          47          12          9
                              -----------  ---------- ----------- ----------
  Total interest expense            7,399       8,689       1,785      2,075
                              -----------  ---------- ----------- ----------
                                                                            
  Net interest and dividend                                                 
   income                          29,022      28,499       7,320      6,996
                                                                            
PROVISION FOR LOAN LOSSES           2,705       1,351         444        367
                              -----------  ---------- ----------- ----------
                                                                            
  Net interest and dividend                                                 
   income after provision for                                               
   loan losses                     26,317      27,148       6,876      6,629
                              -----------  ---------- ----------- ----------
                                                                            
OTHER INCOME                                                                
  Customer service fees             5,068       5,071       1,300      1,258
  Net gain on sales and calls                                               
   of securities                    3,819       2,588         404        348
  Net gain on sales of loans        2,867         931       1,333        368
  Net (loss) gain on sales of                                               
   other real estate owned                                                  
   and fixed assets                  (150)         27           -          -
  Rental income                       736         714         176        163
  Realized gain in Charter                                                  
   Holding Corp.                      444         573         146        114
  Insurance commission income       1,315         122         267        120
  Bank owned life insurance                                                 
   income                             511         432         137        118
                              -----------  ---------- ----------- ----------
  Total noninterest income         14,609      10,458       3,763      2,489
                              -----------  ---------- ----------- ----------
                                                                            
                                                                            
                              For the Twelve Months     Three Months Ended  
                               Ended December 31,          December 31,     
(Dollars in thousands except                                                
 for per share data)             2012       2011         2012        2011   
                             ----------- ----------  -----------  ----------
NONINTEREST EXPENSES         (unaudited)             (unaudited)            
Salaries and employee                                                       
 benefits                         14,988     14,307        3,836       3,781
Occupancy and equipment                                                     
 expenses                          3,648      3,806          937         957
Advertising and promotion            481        510          131         141
Depositors' insurance                802        793          198         184
Professional services              1,208      1,122          289         315
Data processing and outside                                                 
 services                          1,117      1,048          268         285
Telephone                            664        799          153         294
ATM processing fees                  498        481          130         118
Mortgage servicing (income),                                                
 net of amortization of                                                     
 mortgage servicing rights            92       (117)          (4)         11
Supplies                             373        344           94          93
Other expenses                     5,612      4,034        1,905         905
                             ----------- ----------  -----------  ----------
Total noninterest expenses        29,483     27,126        7,937       7,084
                             ----------- ----------  -----------  ----------
                                                                            
INCOME BEFORE PROVISION FOR                                                 
 INCOME TAXES                     11,443     10,480        2,703       2,034
                                                                            
PROVISION FOR INCOME TAXES         3,684      2,811        1,068         404
                                                                            
                             ----------- ----------  -----------  ----------
NET INCOME                   $     7,759 $    7,669  $     1,635  $    1,630
                             =========== ==========  ===========  ==========
NET INCOME AVAILABLE TO                                                     
 COMMON STOCKHOLDERS         $     7,093 $    6,956  $     1,584  $    1,393
                                                                            
Earnings Per Common Share,                                                  
 basic                       $      1.20 $     1.20  $      0.26  $     0.24
Earnings Per Common Share,                                                  
 assuming dilution (1)       $      1.20 $     1.20  $      0.26  $     0.24
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:
Stephen R. Theroux
President
603-863-0886