NEWPORT, NH--(Marketwire - Apr 13, 2012) - 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 quarter ended March 31, 2012 of $2.1 million, or $0.31 per common share, assuming dilution, compared to $2.0 million, or $0.33 per common share, assuming dilution, for same period in 2011, an increase of $57 thousand, or 2.81%.

Financial Highlights

• Total assets increased $52.5 million, or 5.04%, to $1.1 billion at March 31, 2012 from $1.0 billion at December 31, 2011.
  
  
• Net loans increased $22.2 million, or 3.10%, to $737.1 million at March 31, 2012 from $715.0 million at December 31, 2011.
  
  
• For the three months ended March 31, 2012, the Company originated $72.7 million in loans, compared to $69.0 million for the same period in 2011.
  
  
• The Company's loan servicing portfolio was $357.2 million at March 31, 2012 compared to $365.8 million at December 31, 2011.
  
  
• Total deposits increased $7.5 million, or 0.94%, to $810.5 million at March 31, 2012 from $803.0 million at December 31, 2011.
  
  
• Net interest and dividend income for the three months ended March 31, 2012 was $7.1 million compared to $7.2 million for the same period in 2011.
  
  
• The Company's returns on average assets and average equity for the three months ended March 31, 2012 were 0.77% and 7.27%, respectively, compared to 0.80% and 8.91%, respectively, for the same period in 2011.
  
  
• As a percentage of total loans, non-performing loans decreased from 2.47% at December 31, 2011 to 2.39% at March 31, 2012.
  

Earnings Summary

Net income was $2.1 million for the quarter ended March 31, 2012, an increase over the same period in 2011. During the quarter ended March 31, 2012, net interest and dividend income showed a slight decline of $94 thousand, or 1.31%, compared to the same period in 2011. The provision for loan losses decreased $88 thousand to $155 thousand for the quarter ended March 31, 2012 compared to $243 thousand for the same period in 2011. Noninterest income increased $973 thousand, or 41.14%, to $3.3 million for the quarter ended March 31, 2012 compared to $2.4 million for the same period in 2011. This increase includes increases of $26 thousand in customer service fees, $26 thousand in net gain on sales of loans, $711 thousand in net gain on sales and calls of securities, $22 thousand in rental income, $409 thousand in insurance commission income and $9 thousand in bank-owned life insurance income partially offset by decreases of $45 thousand in income from equity interest in Charter Holding Corp. and $185 thousand in losses on other real estate and property owned as the Bank recognized a write-down of $190 thousand on a commercial property owned during the first quarter of 2012. Noninterest expense increased $888 thousand, or 13.80%, to $7.3 million for the quarter ended March 31, 2012 compared to $6.4 million for the same period in 2011. This increase includes $502 thousand, or a 15.30% increase in salaries and employee benefits which includes the additional salary associated with the employees of our recent acquisition, McCrillis & Eldredge Insurance, Inc., additional staffing within lending and compliance, the impact of ordinary cost-of-living increases during the year, and an impairment expense on our mortgage servicing rights of $224 thousand during the first quarter of 2012 which is included in other expenses compared to a benefit of $11 thousand during the same period in 2011.

Net income available to common stockholders was $1.8 million for the three months ended March 31, 2012 compared to $1.9 million for the same period in 2011. During 2011, the Company received $20.0 million from the U.S. Department of Treasury's ("Treasury") Small Business Lending Fund (SBLF) which was used in part to payoff $10.0 million from Treasury's Capital Purchase Program. The dividend related to these programs reduces net income available to common stockholders. During the first quarter of 2011, the $10.0 million investment resulted in a reduction in net income available to common stockholders of approximately $129 thousand as compared to the $20.0 million investment in 2012 resulting in a reduction in net income available to common stockholders of approximately $250 thousand. The dividend rate on the SBLF is based on growth within identified small business lending categories, and as the Bank grows lending in these categories, the rate will decrease resulting in reduced impact on net income available to common stockholders.

Balance Sheet Summary

Total assets were $1.1 billion at March 31, 2012, compared to $1.0 billion at December 31, 2011, an increase of 5.04%. Securities available-for-sale and FHLB stock were $211.7 million at March 31, 2012 down from $218.0 million at December 31, 2011. Net loans held in portfolio increased $22.2 million, or 3.10%, to $737.1 million at March 31, 2012, from $715.0 million at December 31, 2011. The allowance for loan losses was $9.0 million at March 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 $155 thousand, charge-offs of $274 thousand, and recoveries of $74 thousand. As a percentage of total loans, non-performing loans decreased from 2.47% at December 31, 2011 to 2.39% at March 31, 2012, primarily due to the increase in the loan base as the dollar value of non-performing loans remained relatively unchanged. Total loan production for the three months ended March 31, 2012 was $72.7 million compared to $69.0 million for the three months ended March 31, 2011.

Total deposits increased $7.5 million, or 0.94%, to $810.6 million at March 31, 2012 from $803.0 million at December 31, 2011. Within deposits, savings and money market accounts increased $16.4 million, transaction accounts decreased $2.4 million, and time deposits decreased $6.5 million. Advances from the Federal Home Loan Bank increased $40.0 million, or 49.38%, to $121.0 million at March 31, 2012 from $81.0 million at December 31, 2011.

Stockholders' equity of $108.7 million resulted in a book value of $15.20 per common share at March 31, 2012 based on 5,835,360 shares of common stock outstanding, equal to December 31, 2011. As previously announced, a regular quarterly dividend of $0.13 per share is payable on April 30, 2012 to stockholders of record as of April 23, 2012. The Bank remains well-capitalized with a Tier I (Core) Capital ratio of 9.05% at March 31, 2012.

Other Events

On February 15, 2012, the Company repurchased in its entirety the warrant (the "Warrant") previously issued to Treasury on January 16, 2009, in connection with the Company's participation in Treasury's Capital Purchase Program. The Company repurchased the Warrant for $737,100.

About New Hampshire Thrift Bancshares, Inc.

New Hampshire Thrift Bancshares, Inc. is the parent company of Lake Sunapee Bank, fsb, a federally-chartered stock savings bank which provides a wide range of banking and financial services and 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 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 $1.1 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.