<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
0-9517
Commission File Number
BANK OF NEW HAMPSHIRE CORPORATION
(Exact name of registrant as specified in its charter)
NEW HAMPSHIRE 02-
0346918
(State or other jurisdiction of (I.R.S.
Employer
incorporation or organization)
Identification No.)
300 Franklin Street
Manchester, New Hampshire
03105
(Address of principal executive office) (Zip
Code)
(603) 624-6600
(Registrant's telephone number, including area code
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter periods that the registrant was required to file
such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
Indicate the number of shares outstanding of the issuer's common
stock as of March 31, 1995:
Common Stock, $2.50 stated value, no par value, 4,064,156 shares.
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BANK OF NEW HAMPSHIRE CORPORATION
TABLE OF CONTENTS
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Balance Sheets -
March 31, 1995 and December 31, 1994 3
Consolidated Statements of Income -
Quarters Ended March 31, 1995 and 1994 4
Consolidated Statements of Cash
Flows - Quarters Ended March 31, 1995
and 1994 5
Notes to Consolidated Financial
Statements. 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations. 7
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of
Security Holders. 17
Item 6. Exhibits and Reports on Form 8-K. 17
SIGNATURES 18
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
BANK OF NEW HAMPSHIRE CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
March 31 December 31,
1995 1994
(Dollars in thousands,
Assets except per share amounts)
Cash and due from banks $ 53,833 $ 66,037
Federal funds sold and securities purchased under
agreements to resell 51,000 28,000
Total cash and cash equivalents 104,833 94,037
Securities:
Held-to-maturity 286,138 286,577
Available-for-sale 3,628 3,614
Total securities 289,766 290,191
Loans:
Commercial 59,598 58,764
Real estate - commercial 128,896 133,183
Real estate - construction 3,439 3,544
Real estate - residential 256,587 261,062
Installment 64,621 85,926
Total loans 513,141 542,479
Less: Allowance for possible loan losses 12,750 13,191
Net loans 500,391 529,288
Premises and equipment 9,816 10,226
Other real estate 10,149 10,124
Other assets 17,267 19,590
Total Assets $932,222 $953,456
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $139,505 $148,009
Interest bearing 665,099 677,847
Total deposits 804,604 825,856
Federal funds purchased and securities sold under
agreements to repurchase 37,772 40,888
Other borrowed funds 2,557 3,072
Accrued expenses and other liabilities 9,916 8,466
Total liabilities 854,849 878,282
Shareholders' Equity:
Preferred stock - no par value
Authorized shares - 500,000; none issued
Common stock - stated value $2.50 per share
Authorized - 6,000,000 shares
Issued - 4,064,156 shares in 1995
and 4,064,103 shares in 1994 10,160 10,160
Surplus 27,289 27,288
Retained earnings 39,924 37,726
Total shareholders' equity 77,373 75,174
Total liabilities and shareholders' equity $932,222 $953,456
See notes to consolidated financial statements.
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BANK OF NEW HAMPSHIRE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Quarters Ended
March 31,
1995 1994
(In thousands, except
per share amounts)
Interest income:
Interest and fees on loans $ 12,418 $ 11,088
Interest on securities 3,884 2,422
Other interest income 650 743
Total interest income 16,952 14,253
Interest expense:
Deposits 5,035 4,923
Borrowings 479 155
Total interest expense 5,514 5,078
Net interest income 11,438 9,175
Provision for possible loan losses 450 449
Net interest income after provision
for possible loan losses 10,988 8,726
Non-interest income:
Trust fees 986 999
Service charges on deposit accounts 793 783
Securities losses (3)
Other 951 602
Total non-interest income 2,727 2,384
Non-interest expense:
Salaries and employee benefits 4,978 4,474
Occupancy expense 814 862
Equipment expense 365 435
ORE expense 235 475
FDIC insurance expense 465 551
Other 2,633 2,043
Total non-interest expense 9,490 8,840
Income before income taxes 4,225 2,270
Income taxes 1,428 567
NET INCOME $ 2,797 $ 1,703
Average shares outstanding 4,064 4,067
Per share amounts:
Earnings $ .69 $ .42
Cash dividends declared $ .15 $ .08
See notes to consolidated financial statements.
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BANK OF NEW HAMPSHIRE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Quarters Ended
March 31,
1995 1994
(In thousands)
Cash Flows from Operating Activities:
Net income $2,797 $1,703
Adjustments to reconcile net income to
net cash provided by operating activities:
Provision for possible loan losses 450 449
Depreciation, amortization and accretion 531 657
Net change in interest receivables and payables 2,980 290
Net gain on sales of loans (83) (53)
(Gains) losses on ORE, net (4) 81
Provision for deferred taxes 257 (17)
Other, net 979 494
Net cash provided by operating activities 7,907 3,604
Cash Flows from Investing Activities:
Sales of available-for-sale equity securities 596
Maturities of debt securities held-to-maturity 44,640 25,832
Purchases of debt securities held-to-maturity (44,923)(29,625)
Proceeds from sales of loans 23,123 7,431
Proceeds from sales of other real estate 935 795
Net cash from loans 4,448 4,394
Purchases of premises and equipment (438) (253)
Net cash provided by investing
activities 28,381 8,574
Cash Flows from Financing Activities:
Net decrease in demand deposits,
NOW accounts, and savings accounts (26,059) (8,713)
Net increase (decrease) in certificates
of deposit 4,807 (4,735)
Net (decrease) increase in short-term
borrowings (3,631) 5,130
Cash dividends paid (609) (326)
Net cash used for financing
activities (25,492) (8,644)
Increase in cash and cash equivalents 10,796 3,534
Cash and cash equivalents at January 1 94,037 165,999
Cash and cash equivalents at March 31 $104,833 $169,533
Income tax paid, net $ 525 $ -0-
Interest paid $ 5,113 $ 4,816
See notes to consolidated financial statements.
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BANK OF NEW HAMPSHIRE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. The accompanying unaudited interim consolidated financial
statements of Bank of New Hampshire Corporation (the "Company")
have been prepared in accordance with generally accepted
accounting principles. The balance sheet at December 31, 1994 is
from the audited financial statements at that date but does not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
In the opinion of Management, all adjustments, consisting only of
normal recurring adjustments, necessary for a fair presentation of
the information contained herein have been made. Results for the
quarter ended March 31, 1995 are not necessarily indicative of the
results that may be expected for the year ended December 31, 1995.
The accounting policies followed by the Company are set forth
below and in Note A to the consolidated financial statements in
the 1994 Annual Report to Shareholders (Form 10-K - Exhibit 13)
and should be read in conjunction with the information contained
herein.
Note 2. Other Real Estate (ORE). SFAS No. 114, "Accounting by
Creditors for Impairment of a Loan," was adopted by the Company as
of January 1, 1995. SFAS 114 requires that a collateral dependent
real estate loan be reported as ORE only if the lender has taken
possession of the collateral, otherwise the loan must remain in
the loan category. The previously issued financial statements
contained in this Form 10-Q have been reclassified to present in-
substance foreclosed assets, including any related allowances, on
a consistent basis.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
For the Quarters Ended March 31, 1995 and 1994
OVERVIEW
Net Income
For the first quarter of 1995, the Company recorded net income of
$2.8 million, or $.69 per share, compared to net income of $1.7
million, or $.42 per share, for the first quarter of 1994, a 64%
increase. The principal reason for the increase in net income for
the first quarter of 1995 compared to the same period in 1994 was
the increase in net interest income.
FINANCIAL CONDITION
Loans
Total loans at March 31, 1995 were $513.1 million, a decrease of
$29.4 million from the 1994 year-end balance of $542.5 million.
This decrease was primarily due to the sale of $23.0 million in
student loans. A significant amount of the Company's commercial
real estate loans have been made to owner occupied businesses.
Even though these loans are collateralized by real estate, the
primary repayment source for each such loan is the cash flow
generated by the related business. The diversification of the
commercial real estate loan portfolio is such that a material
adverse impact on future operations of the Company is unlikely.
See "Nonperforming Assets," and "Net Interest Income." The
Company has no foreign loans or energy loans, and agricultural
loans totalled only $16,000 at March 31, 1995.
Nonperforming Assets
The following Table provides information with respect to the
Company's past due, restructured and nonaccrual loans and the
components of nonperforming assets for the periods indicated.
March 31, December 31,
1995 1994
(In thousands)
Nonaccrual loans (NL) $10,293 $10,927
Past due 90 days or more (accruing) 2,058 3,003
Restructured loans - 1,251
Total nonperforming loans (NPL) 12,351 15,181
Other real estate (ORE) 10,149 10,124
Total nonperforming assets (NPA) $22,500 $25,305
At March 31, 1995 the nonaccrual loan balance of $10.3 million
included $9.3 million in real estate loans, $1.0 million in
commercial loans, and $25,000 in installment loans. At March 31,
1995, loans 90 days past due and still accruing interest were $2.1
million and included loans secured by real estate which totalled
$1.5 million, commercial loans which totalled $82,000 and
installment debt of $434,000. Although restructured loans have
not been material, management encourages restructuring when it is
likely to benefit the Company and the borrower.
The ORE balance at March 31, 1995 of $10.1 million consists of
$6.5 million of commercial properties, $2.3 million of residential
properties, and $1.3 million of sub-divided lots and undeveloped
land. Loans previously classified as in-substance foreclosure but
for which the Company had not taken possession
<PAGE>
of the collateral totalled $1.2 million at December 31, 1994 and
have been reclassified to nonaccrual loans, in accordance with SFAS 114.
The following Table summarizes the real estate operations of
property held for sale for the quarters ended March 31, 1995 and
1994.
1995 1994
(In thousands)
Balance, January 1 $10,192 $ 8,607
Additions during the period 1,039 2,254
ORE losses (50) (42)
ORE sales (931) (856)
Other, net (58) (85)
10,192 9,878
Allowance for possible ORE losses (43) (228)
Balance, March 31 $10,149 $ 9,650
The following Table summarizes the components of ORE expense for
the quarters ended March 31, 1995 and 1994.
1995 1994
(In thousands)
Valuation adjustments:
ORE losses $ - $ 20
Net (gain) loss on ORE sales (4) 61
(4) 81
General carrying costs 239 394
ORE expense $ 235 $ 475
General carrying costs include legal fees, real estate taxes,
maintenance, appraisals, insurance and miscellaneous other costs.
See "Non-Interest Expense." The gross gains on ORE sales were
$51,000 and $17,000 and the gross losses were $47,000 and $78,000
for the quarters ended March 31, 1995 and 1994, respectively.
<PAGE>
Allowance for Possible Loan Losses (APLL)
The APLL is available for future loan losses. Management believes
the APLL is adequate as of March 31, 1995.
An analysis of the APLL for the quarters ended March 31, 1995 and
1994 follows:
1995 1994
(In thousands)
Balance, beginning of year $13,191 $14,581
Provision for possible loan losses 450 449
Loan losses:
Commercial (32) (418)
Real estate - commercial (449) (142)
Real estate - residential (611) (1,025)
Installment (96) (112)
Total loan losses (1,188) (1,697)
Recoveries:
Commercial 128 160
Real estate - commercial 25 6
Real estate - construction 49 14
Real estate - residential 26 15
Installment 69 84
Total recoveries 297 279
Net loan losses (891) (1,418)
Balance, end of quarter $12,750 $13,612
APLL/NPA 57% 44%
APLL/NPL 103 64
APLL/NL 124 82
At March 31, 1995, the recorded investment in loans that are
considered impaired under SFAS 114 was $5.7 million, all of which
were nonaccrual loans. Included in this amount is $4.0 million of
impaired loans for which the related APLL is $1.6 million.
Impaired loans totalling $1.7 million do not have an APLL as a
result of write-downs and other factors. The average recorded
investment in impaired loans during the quarter ended March 31,
1995 was $5.0 million. For the quarter ended March 31, 1995, the
Company recognized no interest income on impaired loans or
nonaccrual loans.
Securities
Securities totalled $289.8 million at March 31, 1995 and $290.2
million at December 31, 1994. The portfolio consists principally
of U.S. Treasury instruments with an overall maturity of twelve
months. Federal funds sold and securities purchased under
agreements to resell totalled $51.0 million at March 31, 1995,
compared to $28.0 million at year-end 1994. The increase in
federal funds sold is principally due to the previously mentioned
sale of student loans.
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Deposits
Deposits of $804.6 million at March 31, 1995 decreased $21.3
million, or 2.6%, from $825.9 million at December 31, 1994.
Interest bearing deposit balances at March 31, 1995 totalled
$665.1 million compared to $677.9 million at year-end 1994, a
decrease of $12.8 million. The decrease occurred primarily in
savings deposits ($9.8 million), NOW accounts ($3.7 million) and
money market accounts ($4.0 million) and was offset somewhat by
increases in time deposits ($4.8 million). Demand deposits
decreased by $8.5 million through March 31, 1995 compared to the
1994 year-end balance of $148.0 million. The decreases are
principally attributable to normal seasonal fluctuation and, to a
lesser extent, customer movement of deposits into mutual funds.
The impact of the decreases in deposits during the first quarter
of 1995 was not material to the overall liquidity position of the
Company.
The following Table presents the various types of deposit balances
at March 31, 1995 and at December 31, 1994.
March 31, December 31,
1995 1994
(In thousands)
Demand deposits $139,505 $148,009
NOW accounts 134,348 138,031
Savings deposits 278,798 288,646
Money market accounts 47,335 51,359
Time deposits of $100,000 or more 10,106 9,558
Other time deposits 194,512 190,253
Total deposits $804,604 $825,856
Capitalization
The following Table presents the regulatory capital ratios of the
Company at March 31, 1995 and December 31, 1994.
Regulatory March 31, December 31,
Minimum 1995 1994
Regulatory Capital Ratios:
Leverage ratio 3.00% 8.12% 7.68%
Tier 1 risk-based ratio 4.00 16.72 15.94
Total risk-based ratio 8.00 17.99 17.21
The following Table presents the regulatory capital ratios of the
Bank at March 31, 1995 and December 31, 1994.
Regulatory March 31, December 31,
Minimum 1995 1994
Regulatory Capital Ratios:
Leverage ratio 3.00% 7.50% 7.06%
Tier 1 risk-based ratio 4.00 15.52 14.67
Total risk-based ratio 8.00 16.79 15.94
Dividend Policy
The declaration and subsequent payment of dividends on the
Company's common stock is considered quarterly by the Board of
Directors. The long-term capacity of the Company to pay dividends
is conditioned upon the receipt of upstreamed dividends from the
Bank.
<PAGE>
RESULTS OF OPERATIONS
Net Interest Income
This discussion of net interest income should be read in
conjunction with the Tables on pages 13 through 16. All interest
income, yields, rates, interest rate spreads and net interest
margins which follow in this discussion are stated on a fully
taxable equivalent ("FTE") basis using a tax rate of 34%.
Net interest income for the quarter ended March 31, 1995, totalled
$11.5 million compared to $9.2 million for the quarter ended March
31, 1994. Net interest income changes are caused by interest-rate
movements, changes in the amounts and the mix of earning assets
and interest bearing liabilities, and changes in the amounts of
non-earning assets and non-interest bearing liabilities. For the
first quarter of 1995, the $2.3 million increase in net interest
income was primarily due to higher rates earned on loans and
securities. For the first quarter of 1995, the interest rate
spread and net interest margin equalled 4.87% and 5.41%,
respectively, compared to 3.85% and 4.27%, respectively, for the
quarter ended March 31, 1994. Interest rate spread is the average
yield earned on total earning assets less the average rate paid
for interest bearing liabilities. Net interest margin is
calculated by dividing annualized net interest income by average
total earning assets.
Average interest earning assets totalled $859.8 million for the
first quarter of 1995, a decrease of $15.6 million compared to the
1994 comparable quarter. Average loans, however, totalled $524.8
million for the first quarter of 1995, an increase of $1.1 million
compared to the 1994 comparable quarter. The decrease in average
interest earning assets consists primarily of a decrease of $49.4
million in federal funds sold and securities purchased under
agreements to resell offset somewhat by an increase of $32.7
million in securities. The yield on average interest earning
assets for the first quarter of 1995 equalled 8.01%, an increase
of 139 basis points from the comparable 1994 yield of 6.62%. The
increase in yield was offset somewhat by higher interest rates
paid on deposits and borrowings in the first quarter of 1995
compared to 1994. Rates paid on deposits and borrowings increased
from 2.77% in the first quarter of 1994 to 3.14% in the comparable
1995 quarter. Average interest bearing liabilities totalled
$711.2 million for the first quarter of 1995, a decrease of $31.5
million from the comparable 1994 total.
Provision for Possible Loan Losses
The amount of the provision for possible loan losses is
recommended by Management and is then reviewed and approved
quarterly by the Board of Directors of the Company based on its
assessment of the size, composition and quality of the loan
portfolio and the adequacy of the APLL in relation to the risks
within the loan portfolio.
The provision for possible loan losses for the first quarter of
1995 and 1994 was approximately $450,000. Net loan losses for the
quarter ended March 31, 1995 and 1994 were $891,000 and $1.4
million, respectively. In connection with determining the
appropriate amount of the provision for possible loan losses for
any period, Management evaluates the current financial condition
of specific borrowers, the general economic climate, loan
portfolio composition, concentration of credits, loan loss
history, adequacy of collateral, the trends and amounts of
nonaccrual and past due loans and estimation of future potential
losses and the level of the Company's APLL. Management will
continue to utilize the aforementioned criteria to monitor and
analyze loan quality in future periods and will provide for
possible loan losses accordingly.
<PAGE>
Non-Interest Income
Non-interest income increased by $343,000 for the quarter ended
March 31, 1995 compared with last year's total for the comparable
quarter of $2.4 million.
The increase is primarily due to a gain of approximately $367,000
as a result of a fire in one of the branch locations wherein the
insurance reimbursement exceeded the book basis of the property
destroyed.
Non-Interest Expense
Non-interest expense increased $650,000 to $9.5 million for the
quarter ended March 31, 1995 compared to the 1994 first quarter.
This increase was primarily due to other miscellaneous non-
interest expense which totalled $2.6 million for the quarter ended
March 31, 1995, an increase of $590,000 compared to the prior year
first quarter total. This increase consists of higher student
loan service bureau expenses ($67,000), marketing expenses
($100,000) and other miscellaneous expenses ($348,000). ORE
expense decreased by $240,000 for the 1995 first quarter compared
to the 1994 first quarter total of $475,000. FDIC insurance
expense totalled $465,000 for the quarter ended March 31, 1995, a
decrease of $86,000 from the comparable 1994 quarter and was
primarily due to lower deposit balances. Salaries and employee
benefits increased by $504,000. This increase was primarily due
to increases in the cost of various employee benefit programs of
approximately $350,000 with the remainder resulting from planned
increases in salaries and wages.
Income Tax Expense
Income taxes for the first quarter of 1995 and 1994 totalled $1.4
million and $567,000, respectively, on 1995 pre-tax income of $4.2
million and 1994 pre-tax income of $2.3 million. The effective
tax rate was 34% and 25% for the quarters ended March 31, 1995 and
1994, respectively. The SFAS 109 valuation allowance which
totalled $198,000 at December 31, 1993, was reversed during the
1994 first quarter resulting in a reduction in income tax expense.
<PAGE>
AVERAGE BALANCES AND RATES -
FULLY TAXABLE EQUIVALENT BASIS
QUARTERLY SUMMARY
(In thousands)
1995
1st Quarter
Avg Balance Rate
ASSETS
Interest earning assets:
Loans (1) $524,790 9.62%
Taxable securities 289,077 5.43
Non-taxable securities 908 8.93
Federal funds sold and securities
purchased under agreements to resell 45,037 5.85
Total interest earning assets 859,812 8.01
Non-interest earning assets:
Cash and due from banks 48,304
Premises and equipment, net 10,172
Other assets 28,568
Less allowance for possible loan losses (13,318)
Total assets $933,538
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing liabilities:
Savings deposits $464,528 2.52
Certificates of deposit of $100,000
or more 9,737 4.17
Other time deposits 191,736 4.34
Federal funds purchased and securities
sold under agreements to repurchase 42,365 4.24
Other borrowed funds 2,876 5.08
Total interest bearing liabilities 711,242 3.14
Non-interest bearing liabilities:
Demand deposits 136,893
Other liabilities 9,512
Total liabilities 857,647
Shareholders' equity 75,891
Total liabilities and shareholders' equity $933,538
Interest rate spread 4.87%
Net interest margin 5.41%
(1) For the calculation of rates earned on loans, nonaccrual and restructured
loans are included in the average balance.
<PAGE>
<TABLE>
<CAPTION>
AVERAGE BALANCES AND RATES -
FULLY TAXABLE EQUIVALENT BASIS
QUARTERLY SUMMARY
(In thousands)
1994
4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
Avg Balance Rate Avg Balance Rate Avg Balance Rate Avg Balance Rate
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Interest earning assets:
Loans (1) $533,046 9.05% $520,221 8.80% $514,687 8.65% $523,703 8.60%
Taxable securities 287,717 4.80 289,680 4.45 281,454 4.16 255,100 3.81
Non-taxable securities 2,865 5.54 2,944 5.39 3,057 5.64 2,168 6.55
Federal funds sold and securities
purchased under agreements to resell 58,438 5.06 59,536 4.44 78,148 3.88 94,487 3.19
Total interest earning assets 882,066 7.39 872,381 7.04 877,346 6.77 875,458 6.62
Non-interest earning assets:
Cash and due from banks 50,905 52,694 56,095 55,377
Premises and equipment, net 10,347 10,770 11,041 11,201
Other assets 28,242 27,054 26,192 24,729
Less allowance for possible loan losses (13,509) (13,395) (13,750) (14,694)
Total assets $958,051 $949,504 $956,924 $952,071
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing liabilities:
Savings deposits $486,783 2.42 $490,648 2.38 $493,573 2.23 $485,317 2.23
Certificates of deposit of $100,000
or more 9,430 3.83 9,467 3.65 10,262 3.64 11,517 3.70
Other time deposits 191,084 4.00 194,882 3.92 203,024 3.95 212,233 4.11
Federal funds purchased and securities
sold under agreements to repurchase 39,976 3.85 32,855 2.86 29,666 2.15 30,886 1.79
Other borrowed funds 2,573 5.40 2,643 4.65 2,879 3.76 2,785 2.77
Total interest bearing liabilities 729,846 2.94 730,495 2.84 739,404 2.72 742,738 2.77
Non-interest bearing liabilities:
Demand deposits 145,845 138,736 138,464 131,659
Other liabilities 8,485 8,281 8,656 8,801
Total liabilities 884,176 877,512 886,524 883,198
Shareholders' equity 73,875 71,992 70,400 68,873
Total liabilities and shareholders'
equity $958,051 $949,504 $956,924 $952,071
Interest rate spread 4.45% 4.20% 4.05% 3.85%
Net interest margin 4.95% 4.67% 4.48% 4.27%
</TABLE>
(1) For the calculation of rates earned on loans, nonaccrual and restructured
loans are included in the average balance.
Note: Certain amounts in the 1994 Average Balances and Rates schedule have been
reclassified to present in-substance foreclosed assets on a consistent
basis under SFAS 114.
<PAGE>
<TABLE>
<CAPTION>
QUARTERLY INCOME SUMMARY -
FULLY TAXABLE EQUIVALENT BASIS
(In thousands, except per share data)
1995 1994
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
<S> <C> <C> <C> <C> <C>
Interest income $16,985 $16,420 $15,489 $14,817 $14,286
Interest expense 5,514 5,404 5,227 5,019 5,078
Net interest income 11,471 11,016 10,262 9,798 9,208
Less tax equivalent adjustment 33 39 41 47 33
Provision for possible loan
losses 450 385 252 431 449
Non-interest income 2,727 2,402 2,523 2,379 2,384
Non-interest expense 9,490 8,971 9,132 8,667 8,840
Income before income taxes 4,225 4,023 3,360 3,032 2,270
Income taxes 1,428 1,356 1,130 1,021 567
Net income $ 2,797 $ 2,667 $ 2,230 $ 2,011 $ 1,703
Earnings per share $ .69 $ .66 $ .55 $ .49 $ .42
Dividends per share $ .15 $ .125 $ .10 $ .10 $ .08
Return on average assets (1) 1.22% 1.10% .93% .84% .73%
Return on average equity (1) 14.95% 14.32% 12.29% 11.46% 10.03%
</TABLE>
(1) Annualized
Note: Certain amounts in the 1994 Quarterly Income Summary have been
reclassified to present in-substance foreclosed assets on a consistent
basis under SFAS 114.
<PAGE>
<TABLE>
<CAPTION>
NONPERFORMING ASSETS
QUARTERLY SUMMARY
(In thousands)
1995 1994
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
<S> <C> <C> <C> <C> <C>
Nonaccrual loans $10,293 $10,927 $12,760 $14,367 $16,673
Loans 90 days or more past due 2,058 3,003 2,041 2,603 4,144
Restructured loans - 1,251 1,259 281 602
Total nonperforming loans 12,351 15,181 16,060 17,251 21,419
Other real estate 10,149 10,124 10,676 11,312 9,650
Total nonperforming assets $22,500 $25,305 $26,736 $28,563 $31,069
Nonperforming loans as a
percent of total loans 2.41% 2.80% 3.04% 3.37% 4.17%
Nonperforming assets as a
percent of total loans 4.38% 4.67% 5.07% 5.57% 6.05%
</TABLE>
Note: Certain amounts in the 1994 Nonperforming Assets Quarterly Summary have
been reclassified to present in-substance foreclosed assets on a
consistent basis under SFAS 114.
<PAGE>
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
A. The 1995 Annual Meeting of Shareholders of the Company
was held on April 26, 1995.
B. The following matters were submitted to a vote of the
shareholders of the Company.
(1) To fix the number of Directors at seventeen.
VOTED: FOR: 3,537,481
AGAINST: 5,214
ABSTAINED: 11,028
(2) Election of Directors.
Voted Votes
Nominee For Withheld
Robert L. Bailey 3,543,692 10,031
Robert P. Bass, Jr. 3,543,773 9,950
Arthur E. Comolli 3,548,223 5,500
Raymond G. Cote 3,551,823 1,900
Sidney Thurber Cox 3,551,773 1,950
Raymond J. Creteau 3,551,773 1,950
Robert B. Field, Jr. 3,551,744 1,979
Morton E. Goulder 3,542,773 10,950
Philip D. Labombarde 3,542,773 10,950
Floyd A. Lamb 3,551,823 1,900
Daniel R.W. Murdock 3,542,173 11,550
Constance T. Prudden 3,547,273 6,450
Joseph G. Sakey 3,551,773 1,950
Paul R. Shea 3,551,642 2,081
Davis P. Thurber 3,551,773 1,950
George R. Walker; and 3,539,673 14,050
Richard S. West 3,551,773 1,950
All Nominees 3,551,823 1,900
(3) Re-engagement of Independent Auditors.
VOTED: FOR: 3,542,792
AGAINST: 9,045
ABSTAINED: 1,886
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits required by Item 601 of Regulation S-K are
listed on the Exhibits Index on page 20 of this
report and are filed herewith.
(b) Reports on Form 8-K.
No reports on Form 8-K were filed during the quarter
ended March 31, 1995.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this Report to be signed on
its behalf by the Undersigned thereunto duly authorized.
BANK OF NEW HAMPSHIRE CORPORATION
Date: May 4, 1995 /s/ Davis P. Thurber
Davis P. Thurber, Chairman of the
Board and President
Date: May 4, 1995 /s/ Gregory D. Landroche
Gregory D. Landroche, Executive
Vice President, Chief Financial
Officer and Treasurer
<PAGE>
EXHIBITS INDEX
Filed as part of this Report on Form 10-Q
Part I
Exhibit No. Description Page No.
27 Financial Data Schedule 20
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 53,833
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 51,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 3,628
<INVESTMENTS-CARRYING> 286,138
<INVESTMENTS-MARKET> 285,530
<LOANS> 513,141
<ALLOWANCE> 12,750
<TOTAL-ASSETS> 932,222
<DEPOSITS> 804,604
<SHORT-TERM> 40,329
<LIABILITIES-OTHER> 9,916
<LONG-TERM> 0
<COMMON> 10,160
0
0
<OTHER-SE> 67,213
<TOTAL-LIABILITIES-AND-EQUITY> 932,222
<INTEREST-LOAN> 12,418
<INTEREST-INVEST> 3,884
<INTEREST-OTHER> 650
<INTEREST-TOTAL> 16,952
<INTEREST-DEPOSIT> 5,035
<INTEREST-EXPENSE> 5,514
<INTEREST-INCOME-NET> 11,438
<LOAN-LOSSES> 450
<SECURITIES-GAINS> (3)
<EXPENSE-OTHER> 9,490
<INCOME-PRETAX> 4,225
<INCOME-PRE-EXTRAORDINARY> 2,797
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,797
<EPS-PRIMARY> .69
<EPS-DILUTED> 0
<YIELD-ACTUAL> 5.41
<LOANS-NON> 10,293
<LOANS-PAST> 2,058
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 7,779
<ALLOWANCE-OPEN> 13,191
<CHARGE-OFFS> 1,188
<RECOVERIES> 297
<ALLOWANCE-CLOSE> 12,750
<ALLOWANCE-DOMESTIC> 6,987
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 5,763
</TABLE>
