Hampshire First Bank Announces First Quarter Results

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) May 11, 2010 -- Hampshire First Bank (www.hampshirefirst.com) reported a net income for the quarter ended March 31, 2010 totaled $174,000 or $0.06 (basic) per share compared to a net loss of $77,000 or ($0.03) (basic) per share for the same period last year.

Total assets as of March 31, 2010 amounted to $190.9 million compared to $132.5 million as of March 31, 2009. This represents a 44% growth rate and was fueled by strong loan demand and deposit growth year over year of 54% and 60%, respectively.

“This level of growth is indicative of the market strong acceptance of our personalized products and services,” commented James Dunphy, President and CEO of Hampshire First Bank. “We continue to find business relationship opportunities for our core lending, depository and cash management services.”

The Bank’s book value per common shares (basic) increased to $9.33 at March 31, 2010 from $8.64 at March 31, 2009. This represents an 8% increase and is a result of more than one year of profitability and the recognition of a deferred-tax asset in 2009. Return on average assets (ROA) and average common equity (ROE) also increased over the same time period. ROA and ROE as of March 31, 2010 stood at .38% and 2.52%, respectively, compared to (.24%) and (1.19%) for the first quarter of 2009.

The Bank’s tier one leverage capital ratio at 14.9% is more than double the 5% regulatory requirement to be considered “well capitalized” and is indicative of an institution that is well positioned to take advantage of further growth opportunities, Dunphy said.

Management has increased the bank’s allowance for bad debt from 1.08% of total loans as of March 31, 2009 to 1.16% of total loans as of March 31, 2010. Dunphy explained this increase as “warranted due to underlying weaknesses in real estate values and the economy in general”. Nonperforming loans year over year have increased from $1.4 million to $5.6 million. Charged off loans during the first quarter amounted to $10,000 or .03% of total loans.

“Hampshire First Bank is a local community Bank that is well positioned to achieve better and better returns for its customers and shareholders alike. We thank all our clients and stockholders for the trust you have placed in us and look forward to sharing our continued success”, Dunphy said.

The Bank’s complete financial statements can be found at www.hampshirefirst.com

About Hampshire First Bank: Hampshire First Bank is a New Hampshire-chartered commercial bank that serves customers throughout Southern New Hampshire. The Bank operates its main banking office at 80 Canal Street, Manchester and with locations in Downtown Nashua, Keene, Londonderry, and Portsmouth. The bank also provides state of the art electronic banking services, such as Online Account Origination and Remote Deposit Automation. The Bank’s common stock is traded on the OTC electronic bulletin board, under the symbol HFBN.

2010 first quarter earnings     financial institutions     local community bank