NHTB » Topics » Comparison of Financial Condition at September 30, 2007 and December 31, 2006

This excerpt taken from the NHTB 10-Q filed Nov 14, 2007.

Comparison of Financial Condition at September 30, 2007 and December 31, 2006

During the nine months ended September 30, 2007, total assets increased by $88,706,554, including approximately $105.4 million from the First Brandon acquisition, from $672,031,030 at December 31, 2006 to $760,737,584 at September 30, 2007. Total net loans increased $77,968,145, including approximately $66.4 million from the First Brandon acquisition, from $492,711,797 at December 31, 2006 to $570,679,942 at September 30, 2007. During the nine months ended September 30, 2007, the Bank originated $149,542,811 in loans, compared to $147,526,406 for the same period in 2006. Total loans sold into the secondary market amounted to $34,691,518 for the nine months ended September 30, 2007, compared to $26,837,552 for the same period in 2006. Selling fixed rate loans into the secondary market helps protect the Bank against interest rate risk and provides the Bank with fee income. At September 30, 2007, the Bank’s mortgage loan servicing portfolio amounted to $303,177,854, as compared to $298,893,938 at September 30, 2006. The Bank expects to continue to sell fixed rate loans into the secondary market in order to manage interest rate risk. Market risk exposure during the production cycle is managed through the use of secondary market forward commitments. At September 30, 2007, adjustable rate mortgages comprised approximately 77% of the Bank’s real estate mortgage loan portfolio. This is consistent with prior years.

For the nine months ended September 30, 2007, securities available-for-sale decreased by $2,395,254, to $89,127,049, as the Bank utilized funds from either maturing or called securities to pay off maturing Federal Home Loan Bank (“FHLB”) advances. This decrease was partially offset by the addition of $17.3 million in securities available-for-sale in the First Brandon acquisition. The Bank’s net unrealized loss (after-tax) on its investment portfolio amounted to $671,847 as of September 30, 2007 compared to a net unrealized loss of $1,064,427 as of December 31, 2006. Management is of the opinion that this unrealized loss is temporary.

Real estate owned and property acquired in settlement of loans (“OREO”) remained unchanged at $115,000.

During the nine months ended September 30, 2007, deposits increased by $114,021,230, including approximately $89.8 million from the First Brandon acquisition, to $579,527,050 as of

 

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NEW HAMPSHIRE THRIFT BANCSHARES, INC. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

September 30, 2007 from $465,505,820 as of December 31, 2006. Non-interest bearing checking accounts increased $7,096,063, or 18.35%, to $45,759,616 as of September 30, 2007 from $38,663,553 as of December 31, 2006. Savings and interest-bearing checking accounts increased $42,659,574, or 17.64%. Time deposits increased $64,265,593, or 34.73%, to $249,335,025 as customers opted for higher yielding time deposits

Securities sold under agreement to repurchase increased by $3,192,939 to $12,074,803 during the nine months ended September 30, 2007 from $8,881,864 as of December 31, 2006. Repurchase agreements are collateralized by some of the Bank’s government and agency investment securities.

Advances from the Federal Home Loan Bank (FHLB) decreased by $44,895,651 during the nine months ended September 30, 2007 to $75,104,349, as the Bank utilized the proceeds from deposit inflows and maturing securities to fund maturing FHLB advances as part of a de-leveraging strategy, which allowed the Bank to pay-off higher costing liabilities.

Goodwill and Other Intangible Assets amounted to $22,121,971, or 2.91% of total assets, as of September 30, 2007 compared to $12,140,016, or 1.81% of total assets, as of December 31, 2006. This increase was due to the acquisition of First Brandon.

This excerpt taken from the NHTB 10-Q filed Aug 14, 2007.

Comparison of Financial Condition at June 30, 2007 and December 31, 2006

Consolidated net income for the six months ended June 30, 2007 was $2,104,564, or $0.48 per share (assuming dilution) compared to $2,757,917, or $0.64 per share (assuming dilution) for the first six months of 2006, a decrease of 23.69%. For the second quarter ended June 30, 2007, net income totaled $1,079,955, or $.24 per share (assuming dilution) compared to $1,387,204, or $.32 per share (assuming dilution) for the same period in 2006, a decrease of 22.15%. The Company’s returns on average assets and equity for the six months ended June 30, 2007 were 0.63% and 9.26%, respectively, compared to 0.85% and 12.50%, respectively, for the same period in 2006. The above results include one month of operations from the acquisition of First Brandon National Bank (“First Brandon”), which closed on June 1, 2007, and merged with and into the Bank.

The $653,353 decrease in net income for the six months ended June 30, 2007 reflects a decrease of $687,842 in net interest and dividend income, due to continuing margin compression and a slowing housing market. The decrease in net income for the six months ended June 30, 2007 was also caused by an increase of $793,368 in noninterest expense, due in part to the opening of two new branch offices and the consummation of the First Brandon acquisition. An increase in noninterest income for the six months ended June 30, 2007, in the amount of $443,366 partially due to increases in customer service fees, helped to offset the above decreases. The $307,249 decrease in net income for the quarter ended June 30, 2007 reflects a decrease of $50,342 in net interest and dividend income, as well as an increase in

 

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NEW HAMPSHIRE THRIFT BANCSHARES, INC. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

noninterest expense in the amount of $585,423. Included in the results of the quarter ended June 30, 2007 is one month of operations from the First Brandon division. Sharp increases in the Bank’s cost of funds, as customers opted for higher yielding time deposits, reduced the Bank’s interest rate margin to 2.96% at June 30, 2007, from 3.29% at June 30, 2006.

During the first six months ended June 30, 2007, total assets increased by $85,670,025, including approximately $105.4 million from the First Brandon acquisition, from $672,031,030 at December 31, 2006 to $757,898,055 at June 30, 2007. Total net loans increased $75,958,550, including approximately $66.4 million from the First Brandon acquisition, from $492,711,797 at December 31, 2006 to $568,670,347 at June 30, 2007. During the first six months ended June 30, 2007, the Bank originated $101,624,756 in loans, compared to $103,954,444 for the same period in 2006. Total loans sold into the secondary market amounted to $23,365,903 for the six months ended June 30, 2007, compared to $19,599,118 for the same period in 2006. Selling fixed rate loans into the secondary market helps protect the Bank against interest rate risk and provides the Bank with fee income. At June 30, 2007, the Bank’s mortgage loan servicing portfolio amounted to $301,634,075, compared to $303,818,570 as of June 30, 2006. The Bank expects to continue to sell fixed rate loans into the secondary market in order to manage interest rate risk. Market risk exposure during the production cycle is managed through the use of secondary market forward commitments. At June 30, 2007, adjustable rate mortgages comprised approximately 77% of the Bank’s real estate mortgage loan portfolio. This is consistent with prior years.

For the six months ended June 30, 2007, securities available-for-sale increased by $3,387,852, to $94,910,155, including approximately $17.3 million from the First Brandon acquisition, as the Bank utilized funds from either maturing or called securities to pay off maturing Federal Home Loan Bank (“FHLB”) advances. The Bank’s net unrealized loss (after-tax) on its investment portfolio amounted to $1,891,753 as of June 30, 2007 compared to a net unrealized loss of $1,707,556 as of December 31, 2006. This change was the result of an increase in interest rates, which created a decrease in the value of the Bank’s investment securities. Management feels that this unrealized loss is temporary.

Real estate owned and property acquired in settlement of loans (“OREO”) remained unchanged at $0. There was no activity in the OREO account during the first six months ended June 30, 2007.

During the first six months of 2007, deposits increased by $90,299,217, including approximately $89.8 million from the First Brandon acquisition, to $555,805,037 as of June 30, 2007, from $465,505,820 as of December 31, 2006. Non-interest bearing checking accounts increased $10,025,862, or 25.93%, to $48,689,415 as of June 30, 2007, from $38,663,553 as of December 31, 2006. Savings and interest-bearing checking accounts increased $40,017,672, or 16.55%. Time deposits increased $40,255,683, or 21.75%.

Securities sold under agreement to repurchase increased slightly by $214,875 to $9,096,739 during the first six months ended June 30, 2007, from $8,881,864 as of December 31, 2006. Repurchase agreements are collateralized by some of the Bank’s government and agency investment securities.

Advances from the Federal Home Loan Bank (FHLB) decreased by $19,880,343 from June 30, 2006, to $100,119,657 at June 30, 2007, as the Bank utilized the proceeds from deposit inflows and maturing securities to fund maturing FHLB advances as part of a de-leveraging strategy which allows the Bank to pay-off higher costing liabilities.

Goodwill and Other Intangible Assets amounted to $22,223,198, or 2.93% of total assets, as of June 30, 2007, as compared to $12,140,016, or 1.81% of total assets, as of December 31, 2006.

 

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NEW HAMPSHIRE THRIFT BANCSHARES, INC. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

This excerpt taken from the NHTB 10-Q filed May 15, 2007.

Comparison of Financial Condition at March 31, 2007 and December 31, 2006

During the quarter ended March 31, 2007, total assets decreased by $17,440,787, or 2.60%, from $672,031,030 at December 31, 2006 to $654,590,243 at March 31, 2007. Cash, cash equivalents, and securities available-for-sale decreased $16,742,464 from December 31, 2006, as the Bank used cash and the proceeds from maturing securities to pay off advances from the Federal Home Loan Bank of Boston (FHLBB).

Net loans increased $385,271, or 0.08%, from $492,711,797 at December 31, 2006 to $493,097,068 at March 31, 2007. During the first three months of 2007, the Bank originated $37.1 million in loans, compared to $40.7 million in originated loans for the quarter ended March 31, 2006. The decrease was caused by a slow-down in the residential housing market. At March 31, 2007, the Bank had $299,795,160 in its servicing portfolio compared to $305,944,988 at March 31, 2006. The Bank expects to continue to sell fixed rate loans into the secondary market in order to manage interest rate risk. Market risk exposure during the production cycle is managed through the use of secondary market forward commitments. At March 31, 2007, adjustable rate mortgages comprised approximately 77% of the Bank’s real estate mortgage loan portfolio. This is consistent with prior periods.

As of March 31, 2007, securities available-for-sale decreased by $7,032,445 to $84,489,858 compared to $91,522,303 as of December 31, 2006. The Bank’s net unrealized loss (after tax) on its investment portfolio was $1,451,837 at March 31, 2007 compared to an unrealized loss (after tax) of $1,707,556 at December 31, 2006. This slight change was the result of stable interest rates.

Real estate owned (“OREO”) and property acquired in settlement of loans remained at zero. There was no activity in the OREO account during the first quarter of 2007.

Deposits increased by $4,393,243, or 0.94%, to $469,899,063 at March 31, 2007, from $465,505,820, at year-end December 31, 2006. Non-interest bearing checking accounts decreased $5,113,632, or 13.23%. Savings and interest-bearing checking accounts decreased $6,132,817, or 2.54%, as customers moved funds into higher yielding time deposits. Time deposits increased $15,639,692, or 8.45%.

 

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NEW HAMPSHIRE THRIFT BANCSHARES, INC. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Securities sold under agreements to repurchase increased by $359,290, or 4.05%, to $9,241,154 at March 31, 2007 from $8,881,864 at December 31, 2006.

The Bank had $100,000,000 in short-term advances from the Federal Home Loan Bank (“FHLB”) as of March 31, 2007, a decrease of $20,000,000 from December 31, 2006. The Bank used the proceeds from maturing securities and cash to pay off maturing advances.

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