This excerpt taken from the NHTB 10-K filed Mar 30, 2006.
BALANCE SHEET FUNDAMENTALS
Total assets of the Company stood at $650,178,681 at year-end December 31, 2005 as compared to $595,514,082 at year-end 2004. This is a net increase of just over 9.00% and nearly $55 million in real growth over the course of the year. All primary asset and liability areas were up for the year, including loans, deposits and advances. As noted previously, the increasing cost of funds remains of serious concern to the Company as it attempts to offset the affects of margin
the Company recognizes the need to be technologically advanced enough to meet the emerging needs of the growing self-service segment of the population while at the same time serving the currently-larger segment that continues to value, appreciate and rely upon the delivery of banking products in the more traditional setting
\Letter to Shareholders (continued)
the role and positioning of a financial services intermediary such as ours remains culturally intertwined with our communities and our customers
compression with corresponding growth in other service-sector areas of our banking operations.
With the mortgage loan refinance boom now well behind us and many of our existing borrowers now comfortably locked into longer-term fixed-rate mortgages that we service for the secondary market, the Company has focused more attention once again on the purchase-money and construction-loan market. In this regard, 2005 was a very good year for the Company, with net portfolio loan growth of just under $50 million or nearly 12.00%. At December 31, 2005 the loan portfolio stood at $467,172,877 as compared to $417,827,740 at year-end 2004. In addition, the sold loan portfolio has now crossed the $300,000,000 mark and the Company services more than 2,700 loans for the secondary market. When these numbers are combined with those of the Companys own loan portfolio, it is becomes clear that, from an operational basis, we are conducting the day-to-day business of a company much larger than our asset size would indicate.
The two underlying and fundamental strengths of any financial institution are capital adequacy and asset quality. To this end, the Company has continued to maintain its well-capitalized position and to further reduce the already record-low levels of non-performing assets from 0.05% of total assets at year-end 2004 to 0.04% on December 31, 2005. The Company believes that good asset quality is most important to the longer-term stability of the franchise and that yielding on loan policy guidelines and extending credit risk limits can in no way be offset by the attraction of the associated higher interest rates. With the annual Safety and Soundness Examination and Compliance Examination having been conducted by the Office of Thrift Supervision just prior to the close of the year, it is reassuring to note that the Company received a high quality rating in all categories of the examinations.
This excerpt taken from the NHTB 10-K filed Mar 29, 2005.
BALANCE SHEET FUNDAMENTALS
Total assets of the Company stood at $595,514,082 at year end December 31, 2004 as compared to $526,246,231 at year end 2003. This represents a net increase of nearly $70,000,000 over the course of the year and is primarily attributable to a corresponding growth in the loan portfolio that was supported by the leveraged use of advances from the Federal Home Loan Bank that grew from $22,000,000 to $75,000,000 during the year. With total deposits remaining almost flat for the year, it appears that there is now more interest by the investor-depositor in cautiously returning to the stock market as the opportunity (or missed opportunity) for greater returns becomes more financially enticing.
The Companys 10-year fixed-rate portfolio mortgage that was introduced at the end of 2003 has met with great success and, along with the more traditional adjustable rate mortgage programs and the commercial lending activities, helped to significantly increase the outstanding loan portfolio. At December 31, 2004, the loan portfolio stood at $417,827,740 as compared to $348,471,365 at year end 2003. This change represents a net growth of almost 20% and establishes a new baseline from which the Companys interest income from invested assets will grow in future periods. Additionally, the sold loan portfolio of just under $295,000,000 remained almost flat for the year as a direct result of the increase in interest rates and the corresponding reduction in secondary market loan activity. The Company, as in the past, continues to retain the servicing rights on the majority of these loans in order to maintain a stream of income and to further develop the customer relationships so crucial to the future of community banking.
Asset quality remains at historically high levels and the Company uses both internal and external audit functions for thorough review of the loan portfolio, as well as for the periodic review of various other segments of the Companys operations. The additional burdens placed on financial
by mid-year 2005, new full service branches will be open and operational in the New Hampshire communities of Peterborough, Enfield and Claremont
Letter to Shareholders (continued)
service providers to monitor and report on suspicious activity as a deterrent to potential terrorist activity remain in place and regulatory compliance with the Bank Secrecy Act is of paramount concern across the industry.