KEENE, N.H., Jan. 12, 2001 (PRIMEZONE) -- Granite State Bankshares, Inc. (Nasdaq:GSBI) today announced net earnings for the three and twelve months ended December 31, 2000 of $2,531,000 and $10,078,000 compared to net earnings of $2,651,000 and $10,125,000 for the three and twelve months ended December 31,1999. Basic earnings per share were $.48 and $1.83 for the three and twelve months ended December 31, 2000, compared to $.46 and $1.75 for the three and twelve months ended December 31, 1999. Diluted earnings per share were $.47 and $1.82 for the three and twelve months ended December 31, 2000 compared to $.45 and $1.71 for the three and twelve months ended December 31, 1999.
Earnings before income taxes, exclusive of net gains on sales of securities available for sale ("core earnings"), were $15,415,000 for the twelve months ended December 31, 2000, compared with $14,695,000 for the twelve months ended December 31, 1999, an increase of 4.90%.
Net interest and dividend income for the three and twelve months ended December 31, 2000 was $8,114,000 and $32,242,000, compared with $8,073,000 and $31,906,000 for the three and twelve months ended December 31, 1999. The net yield on average interest earning assets for the three and twelve months ended December 31, 2000 was 3.82% and 3.90%, compared with 3.90% and 3.94% for the three and twelve months ended December 31, 1999.
The provision for possible loan losses for the three and twelve months ended December 31, 2000 was $100,000 and $330,000, compared with $0 and $50,000 for the three and twelve months ended December 31, 1999.
Total assets at December 31, 2000 were $955,009,000 compared to $867,677,000 at December 31, 1999. The Company completed its acquisition of the two branch offices of the former Olde Port Bank effective at year end 2000. Loans acquired in connection with the acquisition totaled approximately $43 million and deposits and repurchase agreement liabilities assumed totaled approximately $40 million. Since the acquisition closed effective at year end, the assets acquired and liabilities assumed are included in the balance sheet data. Additionally, since the acquisition is being accounted for under the purchase method of accounting, the operating results relating to the acquired branches will be reflected in earnings commencing January 1, 2001.
Total nonperforming assets were $3,617,000 or 0.38% of total assets at December 31, 2000 and consisted of $3,201,000 of nonperforming loans and $416,000 of other real estate owned. At December 31, 1999, total nonperforming assets were $2,804,000 or 0.32% of total assets and consisted of $1,516,000 of nonperforming loans and $1,288,000 of other real estate owned. The allowance for possible loan losses was $7,854,000 or 245.36% of nonperforming loans at December 31, 2000. At December 31, 1999, the allowance for possible loan losses was $7,032,000, or 463.85% of nonperforming loans.
Stockholders' equity at December 31, 2000 and December 31, 1999 was $73,464,000 and $70,369,000, respectively, representing 7.69% and 8.11% of total assets, respectively.
"Despite the Federal Reserve Board's recent actions to ease interest rates, the year 2000 was marked by increasing interest rates and considerable pressure on interest rate spreads. Additionally, consistent with its ongoing capital management strategies, the Company expended $7.1 million to repurchase 417 thousand shares of its stock during the year. We are pleased to report solid earnings and a significant increase in our earnings per share for the year," commented Charles W. Smith, Chairman and Chief Executive Officer. "We also closed the year with a further enhancement of the Company's franchise through the completion of the acquisition of the two branch offices of the former Olde Port Bank in Portsmouth and Hampton, New Hampshire" Smith stated.
Granite State Bankshares, Inc. is the parent company for Granite Bank, a New Hampshire state-chartered commercial bank and the largest independent bank in the state of New Hampshire with 19 offices operating throughout southern New Hampshire.
Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which the company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.
The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions which 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.
GRANITE STATE BANKSHARES, INC. and SUBSIDIARY
Selected Balance Sheet Data
($ in thousands, except per share data)
December 31, December 31,
2000 1999
------------ ------------
(unaudited)
Total assets $ 955,009 $ 867,677
Securities held to maturity 18,011 18,017
Securities available for sale 196,522 215,572
Stock in Federal Home Loan Bank
of Boston 7,201 7,201
Loans held for sale 657 479
Loans 657,385 568,694
Unearned income 1,177 1,248
Allowance for possible loan losses 7,854 7,032
Net loans 648,354 560,414
Nonperforming loans 3,201 1,516
Other real estate owned 416 1,288
Total nonperforming assets 3,617 2,804
Nonperforming assets as percent
of total assets 0.38% 0.32%
Allowance for possible loan losses
as a percent of nonperforming loans 245.36% 463.85%
Total deposits $ 683,334 $ 628,018
Securities sold under agreements
to repurchase 90,811 75,042
Other borrowings-Federal Home Loan
Bank of Boston 100,515 90,563
Stockholders' equity 73,464 70,369
Book value per share 13.76 12.24
GRANITE STATE BANKSHARES, INC. and SUBSIDIARY
Selected Operating Statement and Other Data
($ in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2000 1999 2000 1999
-------- -------- -------- --------
(unaudited) (unaudited)
Interest and dividend
income $ 16,401 $ 15,247 $ 63,336 $ 59,802
Interest expense 8,287 7,174 31,094 27,896
------ ------ ------ ------
Net interest and
dividend income 8,114 8,073 32,242 31,906
Provision for possible
loan losses 100 0 330 50
------ ------ ------ ------
Net interest and dividend
income after provision
for possible loan losses 8,014 8,073 31,912 31,856
Net gains on sales of
Securities available
for sale 233 13 322 708
Other noninterest income 1,268 1,211 5,247 4,755
Other noninterest expenses 5,542 5,540 21,744 21,916
------ ------ ------ ------
Earnings before
income taxes 3,973 3,757 15,737 15,403
Income taxes 1,442 1,106 5,659 5,278
------ ------ ------ ------
Net earnings $ 2,531 $ 2,651 $ 10,078 $ 10,125
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Weighted average
shares outstanding
Basic 5,319,999 5,720,475 5,494,982 5,778,272
Diluted 5,391,890 5,851,140 5,537,735 5,927,668
Net earnings per
share - basic $ 0.48 $ 0.46 $ 1.83 $ 1.75
====== ====== ====== ======
Net earnings per
share - diluted $ 0.47 $ 0.45 $ 1.82 $ 1.71
====== ====== ====== ======
Dividends declared
per share $ 0.16 $ 0.14 $ 0.64 $ 0.56
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Average Balance
Sheet Data:
Average interest
earning assets $ 844,950 $ 820,584 $ 827,012 $809,421
Average interest
bearing liabilities $ 741,942 $ 722,999 $ 725,261 $712,874
Average stockholders'
equity $ 72,139 $ 72,850 $ 70,714 $ 72,945
Average assets $ 896,972 $ 875,501 $ 875,848 $861,340
Key Operating Ratios:
Return on Average
Assets 1.12% 1.20% 1.15% 1.18%
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Return on Average
Equity 13.96% 14.44% 14.25% 13.88%
====== ====== ====== ======
Weighted Average Interest
Rate Spread 3.28% 3.44% 3.37% 3.48%
====== ====== ====== ======
Net Yield on Average
Interest Earning Assets 3.82% 3.90% 3.90% 3.94%
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