KEENE, N.H., Oct. 11, 2000 (PRIMEZONE) -- Granite State Bankshares, Inc. (Nasdaq:GSBI) today announced net earnings for the three and nine months ended September 30, 2000 of $2,516,000 and $7,547,000 compared to net earnings of $2,647,000 and $7,474,000 for the three and nine months ended September 30, 1999. Basic earnings per share were $.47 and $1.36 for the three and nine months ended September 30, 2000, compared to $.46 and $1.29 for the three and nine months ended September 30, 1999. Diluted earnings per share were $.46 and $1.35 for the three and nine months ended September 30, 2000 compared to $.45 and $1.26 for the three and nine months ended September 30, 1999.
Earnings before income taxes, exclusive of net gains on sales of securities available for sale (core earnings), were $3,855,000 and $11,675,000, respectively, for the three and nine months ended September 30, 2000, compared to $3,747,000 and $10,951,000, respectively, for the three and nine months ended September 30, 1999, representing increases of 2.88% and 6.61%, respectively.
Net interest and dividend income for the three and nine months ended September 30, 2000 was $8,116,000 and $24,128,000, compared with $7,955,000 and $23,833,000 for the three and nine months ended September 30, 1999. Interest rate spread for the three and nine months ended September 30, 2000 was 3.35% and 3.40%, compared with 3.42% and 3.49% for the three and nine months ended September 30, 1999.
The provision for possible loan losses for the three and nine months ended September 30, 2000 was $150,000 and $230,000, compared with $0 and $50,000 for the three and nine months ended September 30, 1999.
Total assets at September 30, 2000 were $885,129,000 compared to $867,677,000 at December 31, 1999.
Total nonperforming assets were $2,606,000 or 0.29% of total assets at September 30, 2000 and consisted of $2,340,000 of nonperforming loans and $266,000 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 $7,157,000 or 305.85% of nonperforming loans at September 30, 2000. At December 31, 1999, the allowance for possible loan losses was $7,032,000, or 463.85% of nonperforming loans.
Stockholders' equity at September 30, 2000 and December 31, 1999 was $70,836,000 and $70,369,000, respectively, representing 8.00% and 8.11% of total assets, respectively.
Chairman and CEO Charles W. Smith said, "We are pleased with the continued increase in core earnings." Smith added "We are delighted with the October 3, 2000 definitive agreement that Granite Bank, the Company's wholly-owned subsidiary, signed with Webster Bank, a wholly-owned subsidiary of Webster Financial Corp., for the in market acquisition of the two branch offices that represent their Olde Port Bank division, located in the city of Portsmouth and the town of Hampton, New Hampshire. The loans to be acquired total approximately $47 million and the deposit and repurchase agreement liabilities also approximate $47 million. Subject to regulatory approval, the transaction is expected to close by December 31, 2000 and is expected to be immediately accretive to earnings in 2001."
Smith further added, "We are pleased to further expand our franchise on the seacoast of New Hampshire. Granite's strong local presence, coupled with our commitment to full service, personal banking represents what Olde Port customers have come to expect. We will be communicating with them soon to ensure a smooth transition over the coming months."
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 17 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)
September 30, December 31,
2000 1999
------------- ------------
(unaudited)
Total assets $ 885,129 $ 867,677
Securities held to maturity 18,012 18,017
Securities available for sale 202,710 215,572
Stock in Federal Home Loan Bank
of Boston 7,201 7,201
Loans held for sale 420 479
Loans 601,183 568,694
Unearned income 1,126 1,248
Allowance for possible loan losses 7,157 7,032
Net loans 592,900 560,414
Nonperforming loans 2,340 1,516
Other real estate owned 266 1,288
Total nonperforming assets 2,606 2,804
Nonperforming assets as percent
of total assets 0.29% 0.32%
Allowance for possible loan losses
as a percent of nonperforming loans 305.85% 463.85%
Total deposits 640,497 628,018
Securities sold under agreements
to repurchase 79,008 75,042
Other borrowings-Federal Home Loan
Bank of Boston 91,450 90,563
Stockholders' equity 70,836 70,369
Book value per share 13.18 12.24
GRANITE STATE BANKSHARES, INC. and SUBSIDIARY
Selected Operating Statement Data
($ in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2000 1999 2000 1999
------ ------ ------ ------
(unaudited) (unaudited)
Interest and
dividend income $ 16,042 $ 14,932 $ 46,935 $ 44,555
Interest expense 7,926 6,977 22,807 20,722
------ ------ ------ ------
Net interest and
dividend income 8,116 7,955 24,128 23,833
Provision for possible
loan losses 150 0 230 50
Net gains on sales of
Securities available
for sale 83 404 89 695
Other noninterest income 1,337 1,247 3,979 3,544
Other noninterest expenses 5,448 5,455 16,202 16,376
------ ------ ------ ------
Earnings before
income taxes 3,938 4,151 11,764 11,646
Income taxes 1,422 1,504 4,217 4,172
------ ------ ------ ------
Net earnings $ 2,516 $ 2,647 $ 7,547 $ 7,474
====== ====== ====== ======
Weighted average shares
outstanding
Basic 5,396,932 5,757,767 5,553,735 5,797,538
Diluted 5,423,346 5,914,424 5,586,705 5,953,246
Net earnings per share
- basic $ 0.47 $ 0.46 $ 1.36 $ 1.29
====== ====== ====== ======
Net earnings per share
- diluted $ 0.46 $ 0.45 $ 1.35 $ 1.26
====== ====== ====== ======
Dividends declared
per share $ 0.16 $ 0.14 $ 0.48 $ 0.42
====== ====== ====== ======
Key Operating Ratios:
Return on Average Assets 1.14% 1.22% 1.16% 1.17%
===== ===== ===== =====
Return on Average Equity 14.30% 14.53% 14.35% 13.69%
====== ====== ====== ======
Weighted Average Interest
Rate Spread 3.35% 3.42% 3.40% 3.49%
===== ===== ===== =====
Net Yield on Average Interest
Earning Assets 3.89% 3.89% 3.92% 3.96%
===== ===== ===== =====