Northway Financial : Announces Second Quarter Earnings and Declares Semi-Annual Dividend
July 30, 2021 at 05:30 pm IST
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NORTH CONWAY, N.H., July 30, 2021 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the “Company”) (OTCQB: NWYF), the parent company of Northway Bank (the “Bank”), today reported net income for the quarter ended June 30, 2021 of $2.2MM, or $0.81 per basic common share. Year-to-date, the Company reported net income of $4.1MM, or $1.50 per basic common share.
The Board of Directors declared a semi-annual cash dividend of $0.35 per share, payable on August 16, 2021, to common stockholders of record on August 9, 2021.
President and CEO William J. Woodward commented: “I am pleased to report the results for the first six months of 2021, which produced $4.1 million in net income. During the first half of the year we increased our loan portfolio by 11%, grew our deposits by 11%, and managed down nonperforming loans to 0.30% of total loans. Residential mortgage lending continues to be a driving force in our retail business as we are well positioned to assist borrowers in this strong housing market. We have also been able to enhance our municipal lending to New Hampshire communities. As we enter the second half of 2021, we are increasingly optimistic that the economy will continue to improve as the effects of the pandemic fall further into the past. We have the people and resources in place to continue to grow our business throughout the State of New Hampshire.”
Financial Highlights
Total assets were $1.2 billion, total loans, net, were $799 million, and total deposits were $980 million at June 30, 2021.
Total loans, net, increased $107 million or 15% compared to June 30, 2020.
Loans to municipalities increased $57.1 million or 137% compared to June 30, 2020.
During the quarter, the Bank funded 81 Paycheck Protection Program loans with total balances of $3.4 million.
Securities Available-for-Sale, at Fair Value increased $133 million or 86% compared to June 30, 2020.
Marketable Equity Securities, at Fair Value increased $14 million or 102% compared to June 30, 2020.
Total deposits increased 17% compared to June 30, 2020 driven by a 22% increase in total non-maturity deposits of $161 million.
The cost of interest bearing liabilities was 0.30% vs 0.59% at June 30, 2020.
Nonperforming loans as a percentage of total loans stood at 0.30% at June 30, 2021 compared to 0.43% at June 30, 2020.
The Bank’s regulatory capital ratios at June 30, 2021 exceeded all well-capitalized ratios as defined under FDIC’s Prompt Corrective Action rules.
The market price of our common stock, as of July 29, 2021, was $31.50.
Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
Six Months Ended
6/30/2021
6/30/2020
6/30/2021
6/30/2020
Interest and Dividend Income
$
8,136
$
7,802
$
16,101
$
15,892
Interest Expense
555
984
1,226
2,009
Net Interest and Dividend Income
7,581
6,818
14,875
13,883
Provision for Loan Losses
-
750
-
750
All Other Noninterest Income
1,293
2,374
2,606
3,518
Noninterest Expense
7,233
7,357
14,822
15,072
Net Income Before Gain (Loss) on Securities
1,641
1,085
2,659
1,579
Gain on Securities Available-for-Sale, net
-
33
-
1,175
Gain (Loss) on Marketable Equity Securities
1,078
1,684
2,351
(1,884
)
Income (Loss) before Income Tax Expense
2,719
2,802
5,010
870
Income Tax Expense (Benefit)
482
487
874
(53
)
Net Income
$
2,237
$
2,315
$
4,136
$
923
Net Income Available to Common Stockholders
$
2,237
$
2,315
$
4,136
$
923
Earnings per Common Share, Basic
$
0.81
$
0.84
$
1.50
$
0.33
6/30/21
12/31/2020
6/30/2020
Balance Sheet
Total Assets
$
1,208,960
$
1,120,692
$
1,065,015
Cash and Due from Banks and Interest-Bearing Deposits
55,620
167,812
160,342
Securities Available-for-Sale, at Fair Value
287,016
172,117
154,067
Marketable Equity Securities, at Fair Value
27,522
17,901
13,607
Loans Held-for-Sale
-
237
5,221
Loans, Net
798,744
722,354
691,777
Total Liabilities
1,110,199
1,024,577
972,286
Non Municipal Non-Maturity Deposits
762,855
673,502
624,730
Municipal Non-Maturity Deposits
130,407
116,255
107,663
Certificates of Deposit
86,366
96,476
103,768
Securities Sold Under Agreements to Repurchase
96,553
103,523
99,635
Junior Subordinated Debentures
20,620
20,620
20,620
Stockholders' Equity
98,761
96,115
92,729
Profitability and Efficiency
Net Interest Margin
2.76
%
2.96
%
3.17
%
Yield on Earning Assets
2.98
3.34
3.62
Cost of Interest Bearing Liabilities
0.30
0.51
0.59
Book Value Per Share of Common Shares Outstanding
$
35.89
$
34.93
$
33.70
Tangible Book Value Per Share of Common Shares Outstanding
32.04
31.07
29.86
Capital and Credit
Tier 1 Core Capital to Average Assets
9.36
%
9.67
%
10.51
%
Common Equity Risk-Based Capital
11.85
13.05
13.10
Tier 1 Risk-Based Capital
14.50
16.08
16.26
Total Risk-Based Capital
15.75
17.34
17.51
Common Shares Outstanding
2,751,650
2,751,650
2,751,650
Weighted Average Number of Common Shares, Basic
2,751,650
2,751,650
2,751,650
About Northway Financial, Inc.
Northway Financial, Inc., headquartered in North Conway, New Hampshire, is a bank holding company. Through its subsidiary bank, Northway Bank, the Company offers a broad range of financial products and services to individuals, businesses and the public sector from its 16 full-service banking offices and its loan production offices located in Bedford and Portsmouth, New Hampshire.
Forward-looking Statements
Statements included in this press release that are not historical or current fact are “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Northway Financial, Inc. disclaims any obligation to subsequently revise 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 or circumstances.
Contact:
Gary Laurash
Chief Financial Officer
603-326-7377
Northway Financial, Inc. is a bank holding company for Northway Bank (the Bank). The Bank is engaged principally in the business of attracting deposits from the general public and investing those deposits in securities, commercial loans, real estate loans and consumer loans. It has six segments. Residential segment offers first lien mortgages and home equity loans. Construction segment offers residential construction and commercial real estate construction loans. Commercial segment offers loans, which are secured primarily by income-producing investor-owned or owner-occupied business properties. Commercial segment offers loans, which are made to businesses and are generally secured by assets of the business. Consumer segment offers automobile and aircraft loans, and repayment is dependent on the credit quality of the individual borrower. Municipal segment offers loans, which are generally unsecured, and repayment is dependent on the tax assessments of the local municipalities.