KEENE, N.H., Jan. 15, 2002 (PRIMEZONE) -- Granite State Bankshares, Inc. (Nasdaq:GSBI) today announced net earnings for the three and twelve months ended December 31, 2001 of $3,138,000 and $11,389,000, compared to net earnings of $2,531,000 and $10,078,000 for the three and twelve months ended December 31, 2000. Basic earnings per share were $.60 and $2.16 for the three and twelve months ended December 31, 2001, compared to $.48 and $1.83 for the three and twelve months ended December 31, 2000. Diluted earnings per share were $.59 and $2.11 for the three and twelve months ended December 31, 2001 compared to $.47 and $1.82 for the three and twelve months ended December 31, 2000, representing increases of 25.53% and 15.93%, respectively.
Net interest and dividend income for the three and twelve months ended December 31, 2001 was $9,995,000 and $37,010,000, compared with $8,114,000 and $32,242,000 for the three and twelve months ended December 31, 2000. The net interest margin for the three and twelve months ended December 31, 2001 was 4.10% and 3.98%, compared with 3.82% and 3.90% for the three and twelve months ended December 31, 2000.
Gains on sales of loans in the secondary mortgage market for the three and twelve months ended December 31, 2001 were $803,000 and $1,722,000, respectively, compared with $102,000 and $364,000, respectively, for the three and twelve months ended December 31, 2000. The large increase in 2001 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.
The provision for possible loan losses for the three and twelve months ended December 31, 2001 was $300,000 and $660,000, compared with $100,000 and $330,000 for the three and twelve months ended December 31, 2000.
Total assets at December 31, 2001 were $1,018,942,000 compared to $955,009,000 at December 31, 2000.
Total nonperforming assets were $3,015,000 or 0.30% of total assets at December 31, 2001 and consisted of $3,015,000 of nonperforming loans. 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 $8,085,000 or 268.16% of nonperforming loans at December 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 December 31, 2001 and 2000 was $80,537,000 and $73,464,000, respectively, representing 7.90% and 7.69% of total assets, respectively.
Chairman and CEO Charles W. Smith said, "We are pleased to report solid earnings and a significant increase in earnings per share for the three and twelve months ended December 31, 2001 over the same periods in 2000. The Olde Port acquisition, completed December 31, 2000, continued to be accretive to earnings in 2001. This addition to our franchise is on the seacoast, which represents a strong growth area and a desirable part of the state to do business. Additionally, consistent with its ongoing capital management strategies, the Company expended $3.7 million to repurchase 163 thousand shares of its stock during the year. Also, we are delighted to report that strong asset growth during the year has enabled Granite State Bankshares, Inc. to report assets in excess of $1 billion for year end for the first time in its history."
Earnings Outlook for 2002
Commenting on the Company's earnings expectations for 2002, Chairman and CEO Smith stated: "We look forward to continued earnings momentum in 2002, although we do not expect to see significant further decreases in interest rates nor the related pace of loan originations and gains on sales of loans. Although it is acknowledged now that the economy has experienced a recession, we also do not expect to see the economic disruptions that occurred in prior periods of recession. We are currently estimating fully diluted earnings per share for 2002 in the range of $2.20 to $2.30."
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)
December 31, December 31,
2001 2000
------------ ------------
(unaudited)
Total assets $1,018,942 $ 955,009
Securities held to maturity 5,006 18,011
Securities available for sale 274,201 196,522
Stock in Federal Home Loan Bank of Boston 7,201 7,201
Loans held for sale 14,821 657
Loans 655,000 657,385
Unearned income 1,075 1,177
Allowance for possible loan losses 8,085 7,854
Net loans 645,840 648,354
Nonperforming loans 3,015 3,201
Other real estate owned - 416
Total nonperforming assets 3,015 3,617
Nonperforming assets as percent of total assets 0.30% 0.38%
Allowance for possible loan losses as a percent
of nonperforming loans 268.16% 245.36%
Total deposits $ 714,143 $ 683,334
Securities sold under agreements to repurchase 85,013 90,811
Other borrowings - Federal Home
Loan Bank of Boston 135,464 100,515
Stockholders' equity 80,537 73,464
Book value per share 15.38 13.76
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,
-------------------- ----------------------
2001 2000 2001 2000
------ ------ ------ ------
(unaudited) (unaudited)
Interest and
dividend income $ 16,942 $ 16,401 $ 68,922 $ 63,336
Interest expense 6,947 8,287 31,912 31,094
---------- --------- ---------- ---------
Net interest and
dividend income 9,995 8,114 37,010 32,242
Provision for
possible loan losses 300 100 660 330
---------- --------- ---------- ---------
Net interest and
dividend income
after provision for
possible loan
losses 9,695 8,014 36,350 31,912
Net gains (losses) on
sales of securities
available for sale (54) 233 403 322
Net gains on sales
of loans 803 102 1,722 364
Other noninterest
income 1,476 1,166 5,367 4,883
Other noninterest
expenses 6,795 5,542 25,680 21,744
---------- --------- ---------- ---------
Earnings before
income taxes 5,125 3,973 18,162 15,737
Income taxes 1,987 1,442 6,773 5,659
---------- --------- ---------- ---------
Net earnings $ 3,138 $ 2,531 $ 11,389 $ 10,078
========== ========= ========== =========
Weighted average
shares outstanding
Basic 5,189,767 5,319,999 5,264,873 5,494,982
Diluted 5,310,393 5,391,890 5,389,746 5,537,735
Net earnings per
share-basic $ 0.60 $ 0.48 $ 2.16 $ 1.83
========== ========= ========== =========
Net earnings per
share-diluted $ 0.59 $ 0.47 $ 2.11 $ 1.82
========== ========= ========== =========
Dividends declared
per share $ 0.17 $ 0.16 $ 0.68 $ 0.64
========== ========= ========== =========
Average Balance
Sheet Data:
Average loans and
loans held for sale $ 674,246 $ 608,663 $ 667,963 $ 586,081
========== ========= ========== =========
Average interest
earning assets $ 967,967 $ 844,950 $ 929,468 $ 827,012
========== ========= ========== =========
Average interest
bearing deposits $ 625,351 $ 565,386 $ 608,540 $ 560,929
========== ========= ========== =========
Average interest
bearing
liabilities $ 851,660 $ 741,942 $ 821,767 $ 725,261
========== ========= ========== =========
Average
stockholders'
equity $ 82,224 $ 72,139 $ 79,118 $ 70,714
========== ========= ========== =========
Average assets $ 1,034,015 $ 896,972 $ 992,782 $ 875,848
========== ========= ========== =========
Key Operating Ratios:
Return on
Average Assets 1.20% 1.12% 1.15% 1.15%
========== ========= ========== =========
Return on
Average Equity 15.14% 13.96% 14.39 14.25%
========== ========= ========== =========
Weighted Average
Interest Rate
Spread 3.71% 3.28% 3.53% 3.37%
========== ========= ========== =========
Net Yield on Average
Interest Earning
Assets 4.10% 3.82% 3.98% 3.90%
========== ========= ========== =========