KEENE, N.H., April 9, 2001 (PRIMEZONE) -- Granite State Bankshares, Inc. (Nasdaq:GSBI) today announced net earnings for the three months ended March 31, 2001, of $2,657,000 compared to net earnings of $2,509,000 for the three months ended March 31, 2000. Basic earnings per share were $.50 for the three months ended March 31, 2001, compared to $.44 for the three months ended March 31, 2000. Diluted earnings per share were $.49 for the three months ended March 31, 2001, compared to $.44 for the three months ended March 31, 2000, an increase of 11.36%.
The Company adopted Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging Activities," on January 1, 2001. The cumulative effect on prior years of adopting SFAS No. 133 on January 1, 2001, was not significant and therefore has not been separately disclosed. The impact of accounting for derivative instruments under SFAS No. 133 during the three months ended March 31, 2001, decreased net interest and dividend income by $163,000. The after tax impact on net earnings was a decrease of $98,000.
Net interest and dividend income for the three months ended March 31, 2001, was $8,606,000, compared with $7,931,000 for the three months ended March 31, 2000. Interest rate spread for the three months ended March 31, 2001, was 3.45%, compared with 3.40% for the three months ended March 31, 2000.
The provision for possible loan losses for the three months ended March 31, 2001, was $60,000, compared with $30,000 for the three months ended March 31, 2000.
Total assets at March 31, 2001, were $962,272,000 compared to $955,009,000 at December 31, 2000.
Total nonperforming assets were $3,537,000 or 0.37% of total assets at March 31, 2001, and consisted of $3,070,000 of nonperforming loans and $467,000 of other real estate owned. At December 31, 2000, total nonperforming assets were $3,617,000 or 0.38% of total assets and consisted of $3,201,000 of nonperforming loans and $416,000 of other real estate owned. The allowance for possible loan losses was $7,969,000 or 259.58% of nonperforming loans at March 31, 2001. At December 31, 2000, the allowance for possible loan losses was $7,854,000, or 245.36% of nonperforming loans.
Stockholders' equity at March 31, 2001, and December 31, 2000, was $76,659,000 and $73,464,000, respectively, representing 7.97% and 7.69% of total assets, respectively.
Chairman and CEO Charles W. Smith said, "We are pleased with the increase in earnings for the three months ended March 31, 2001 over the same period in 2000. The Company's Board of Directors increased the quarterly cash dividend to $.17 per share, which represents an increase of 6.25% over the previous quarter's dividend and an annualized dividend rate of $.68 per share. We are also delighted with the completion and integration of the Olde Port acquisition, which will be accretive to earnings in 2001. This addition to our franchise gives us five offices on the seacoast, which is a strong growth area and a desirable part of the state to do business."
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 and Other Data
($ in thousands, except per share data)
March 31, December 31,
2001 2000
--------- ------------
(unaudited)
Total assets $962,272 $955,009
Securities held
to maturity 6,009 18,011
Securities available
for sale 213,799 196,522
Stock in Federal Home
Loan Bank of Boston 7,201 7,201
Loans held for sale 1,098 657
Loans 661,529 657,385
Unearned income 1,148 1,177
Allowance for possible
loan losses 7,969 7,854
Net loans 652,412 648,354
Nonperforming loans 3,070 3,201
Other real estate owned 467 416
Total nonperforming assets 3,537 3,617
Nonperforming assets as
percent of total assets 0.37% 0.38%
Allowance for possible
loan losses as a percent
of nonperforming loans 259.58% 245.36%
Total deposits $681,496 $683,334
Securities sold under
agreements to repurchase 78,996 90,811
Other borrowings-Federal
Home Loan Bank of Boston 120,502 100,515
Stockholders' equity 76,659 73,464
Book value per share 14.30 13.76
GRANITE STATE BANKSHARES, INC. and SUBSIDIARY
Selected Operating Statement and Other Data
($ in thousands, except per share data)
Three Months Ended
March 31,
---------------------
2001 2000
-------- --------
(unaudited)
Interest and dividend income $ 17,104 $ 15,314
Interest expense 8,498 7,383
---------- ----------
Net interest and
dividend income 8,606 7,931
Provision for possible
loan losses 60 30
Net interest and
dividend income after -- --
provision for possible
loan losses 8,546 7,901
Net gains on sales of
securities available
for sale 228 6
Other noninterest income 1,394 1,266
Other noninterest expenses 5,978 5,280
---------- ----------
Earnings before
income taxes 4,190 3,893
Income taxes 1,533 1,384
---------- ----------
Net earnings $ 2,657 $ 2,509
========== ==========
Weighted average shares
outstanding
Basic 5,314,478 5,704,777
Diluted 5,419,844 5,752,907
Net earnings per share-basic $ 0.50 $ 0.44
========== ==========
Net earnings per share-diluted $ 0.49 $ 0.44
========== ==========
Dividends declared per share $ 0.17 $ 0.16
========== ==========
Average Balance Sheet Data:
Average interest
earning assets $ 885,533 $ 819,194
========== ==========
Average interest
bearing liabilities $ 786,913 $ 721,378
========== ==========
Average stockholders'
equity $ 76,219 $ 70,818
========== ==========
Average assets $ 946,885 $ 866,196
========== ==========
Key Operating Ratios:
Return on Average Assets 1.14% 1.16%
========== ==========
Return on Average Equity 14.14% 14.25%
========== ==========
Weighted Average
Interest Rate Spread 3.45% 3.40%
========== ==========
Net Yield on Average
Interest Earning Assets 3.94% 3.89%
========== ==========