KEENE, N.H., July 9, 2002 (PRIMEZONE) -- Granite State Bankshares, Inc. (Nasdaq:GSBI) today announced net earnings for the three and six months ended June 30, 2002 of $3,721,000 and $7,057,000 compared to net earnings of $2,730,000 and $5,387,000 for the three and six months ended June 30, 2001. Basic earnings per share were $.73 and $1.37 for the three and six months ended June 30, 2002 compared to $.52 and $1.02 for the three and six months ended June 30, 2001. Diluted earnings per share were $.70 and $1.33 for the three and six months ended June 30, 2002 compared to $.50 and $.99 for the three and six months ended June 30, 2001, representing increases of 40.00% and 34.34%, respectively.
Net interest and dividend income for the three and six months ended June 30, 2002 was $10,019,000 and $19,992,000 compared with $9,016,000 and $17,622,000 for the three and six months ended June 30, 2001. The interest rate spread for the three and six months ended June 30, 2002 was 3.71% and 3.75% compared with 3.48% and 3.47% for the three and six months ended June 30, 2001. The net interest margin for the three and six months ended June 30, 2002 was 4.03% and 4.08% compared with 3.96% and 3.95% for the three and six months ended June 30, 2001.
The provision for possible loan losses for the three and six months ended June 30, 2002 was $100,000 and $325,000 compared with $120,000 and $180,000 for the three and six months ended June 30, 2001.
Gains on sales of loans in the secondary mortgage market for the three and six months ended June 30, 2002 were $481,000 and $1,312,000 compared with $265,000 and $419,000 for the three and six months ended June 30, 2001. The large increase in 2002 relates to the lower interest rate environment, which encouraged residential borrowers to refinance into fixed rate loan products which the Company sells in the secondary mortgage market. Since the Company does not expect further significant reductions in market interest rates, management does not expect to realize the same level of gains on sales of loans in the secondary mortgage market during the remaining quarters of 2002 as compared to the first and second quarters of 2002.
Total assets at June 30, 2002 were $1,083,913,000 compared to $1,018,942,000 at December 31, 2001.
Total nonperforming loans and nonperforming assets were $2,275,000 or 0.21% of total assets at June 30, 2002. At December 31, 2001, total nonperforming loans and nonperforming assets were $3,015,000 or 0.30% of total assets. The allowance for possible loan losses was $8,104,000 or 356.22% of nonperforming loans at June 30, 2002. At December 31, 2001, the allowance for possible loan losses was $8,085,000, or 268.16% of nonperforming loans.
Stockholders' equity at June 30, 2002 and December 31, 2001 was $85,901,000 and $80,537,000, respectively, representing 7.93% and 7.90% of total assets, respectively.
Chairman and CEO Charles W. Smith said, "We are pleased to report solid earnings and a significant increase in net earnings and earnings per share for the three and six months ended June 30, 2002 over the same periods in 2001. As previously reported, effective April 1, 2002, the Company completed its acquisitions of Blake Insurance Agency, Sise Insurance and Sise Financial Services, three insurance agencies all located in Portsmouth, New Hampshire. We believe these acquisitions will enhance the Company's franchise. Additionally, we are delighted to report that the Company has been included in the Russell 2000 Index based on its market capitalization as of May 31, 2002."
Updated Earnings Outlook for 2002
Commenting on the Company's earnings expectations for the remainder of 2002, Chairman and CEO Smith stated: "Although we do not expect to see significant further decreases in interest rates nor the continued high levels of loan originations and gains on sales of loans, in light of the results of operations for the three and six months ended June 30, 2002, we are modifying our guidance on estimated diluted earnings per share for the year ended 2002 to be in the range of $2.43 to $2.50 as compared to the $2.24 to $2.32 range previously reported on April 8, 2002."
Forward-looking Statements
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. 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.
GRANITE STATE BANKSHARES, INC. and SUBSIDIARY
Selected Balance Sheet Data
($ in thousands, except per share data)
June 30, December 31,
2002 2001
---------- ------------
(unaudited)
Total assets $1,083,913 $1,018,942
Securities held to maturity 5,005 5,006
Securities available for sale 299,698 274,201
Stock in Federal Home Loan Bank of Boston 7,773 7,201
Loans held for sale 5,550 14,821
Loans 657,316 655,000
Unearned income 1,034 1,075
Allowance for possible loan losses 8,104 8,085
Net loans 648,178 645,840
Total nonperforming loans and
nonperforming assets 2,275 3,015
Nonperforming assets as percent
of total assets 0.21% 0.30%
Allowance for possible loan losses
as a percent of nonperforming loans 356.22% 268.16%
Total deposits $ 760,322 $ 714,143
Securities sold under agreements
to repurchase 78,311 85,013
Other borrowings - Federal Home Loan
Bank of Boston 155,449 135,464
Stockholders' equity 85,901 80,537
Book value per share 16.57 15.38
GRANITE STATE BANKSHARES, INC. and SUBSIDIARY
Selected Operating Statement and Other Data
($ in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2002 2001 2002 2001
---------- ---------- ---------- ----------
(unaudited) (unaudited)
Interest and dividend
income $ 16,034 $ 17,357 $ 32,204 $ 34,461
Interest expense 6,015 8,341 12,212 16,839
---------- ---------- ---------- ----------
Net interest and
dividend income 10,019 9,016 19,992 17,622
Provision for possible
loan losses 100 120 325 180
---------- ---------- ---------- ----------
Net interest and
dividend income
after provision for
possible loan losses 9,919 8,896 19,667 17,442
Net gains on sales of
securities available
for sale 544 192 494 420
Net gains on sales
of loans 481 265 1,312 419
Other noninterest
income 2,258 1,313 3,644 2,553
Other noninterest
expenses 7,180 6,418 13,706 12,396
---------- ---------- ---------- ----------
Earnings before
income taxes 6,022 4,248 11,411 8,438
Income taxes 2,301 1,518 4,354 3,051
---------- ---------- ---------- ----------
Net earnings $ 3,721 $ 2,730 $ 7,057 $ 5,387
========== ========== ========== ==========
Weighted average shares
outstanding
Basic 5,130,697 5,296,567 5,135,726 5,305,473
Diluted 5,350,853 5,428,517 5,325,746 5,424,204
Net earnings per
share - basic $ 0.73 $ 0.52 $ 1.37 $ 1.02
========== ========== ========== ==========
Net earnings per
share - diluted $ 0.70 $ 0.50 $ 1.33 $ 0.99
========== ========== ========== ==========
Dividends declared
per share $ 0.19 $ 0.17 $ 0.38 $ 0.34
========== ========== ========== ==========
Average Balance Sheet
Data:
Average loans and
Loans held for
sale $ 651,888 $ 664,778 $ 653,707 $ 661,677
========== ========== ========== ==========
Average interest
earning assets $ 996,267 $ 913,307 $ 988,084 $ 899,497
========== ========== ========== ==========
Average interest
bearing deposits $ 640,939 $ 603,731 $ 635,284 $ 598,407
========== ========== ========== ==========
Average interest
bearing
liabilities $ 876,862 $ 808,085 $ 871,751 $ 797,557
========== ========== ========== ==========
Average stockholders'
equity $ 83,519 $ 77,849 $ 82,727 $ 77,039
========== ========== ========== ==========
Average assets $1,063,447 $ 975,318 $1,052,902 $ 961,180
========== ========== ========== ==========
Key Operating Ratios:
Return on Average
Assets 1.40% 1.12% 1.35% 1.13%
========== ========== ========== ==========
Return on Average
Equity 17.87% 14.07% 17.20% 14.10%
========== ========== ========== ==========
Weighted Average
Interest Rate Spread 3.71% 3.48% 3.75% 3.47%
========== ========== ========== ==========
Net Yield on Average
Interest Earning
Assets 4.03% 3.96% 4.08% 3.95%
========== ========== ========== ==========