Northway Financial : Announces Third Quarter Earnings
October 30, 2020 at 08:01 am EDT
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NORTH CONWAY, N.H., Oct. 30, 2020 (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 September 30, 2020 of $1.6MM, or $0.59 per basic common share. Year-to-date, the Company reported net income of $2.5MM, or $0.92 per basic common share.
Financial Highlights
Total assets were $1.1B, total loans, net, were $730MM, and total deposits were $876MM at September 30, 2020.
Year-to-date net income before gains on marketable equity securities, net, was $3.8MM.
Loans, net, increased $101MM when compared to December 31, 2019, which was due in part to the Bank processing 705 Small Business Administration’s Paycheck Protection Program loans in the aggregate amount of $71MM as of September 30, 2020.
Total deposits at September 30, 2020 were $876MM, an increase of $144MM, or 20%, from December 31, 2019. The increase is primarily attributable to federal and state funds from COVID-19 economic relief and stimulus programs deposited into our customers’ accounts.
In response to the COVID-19 pandemic the Bank granted short term modifications totaling $124MM. As of September 30, 2020, only $16MM have requested a second modification.
The net interest margin for the nine months ending September 30, 2020 was 2.98% driven by the extremely low interest rate environment and increase in cash balances.
For the nine months ending September 2020, a $1.5MM provision for loan losses was recorded.
Regulatory capital ratios at September 30, 2020 were 9.50% Tier 1 Core Capital to Average Assets, 17.12% Total Risk-Based Capital, and 12.80% Common Equity Risk-Based Capital.
Nonperforming loans as a percentage of total loans stood at 0.41% at September 30, 2020 compared to 0.49% at December 31, 2019.
The market price of our common stock, as of October 23, 2020, was $22.50.
Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
Nine Months Ended
9/30/2020
9/30/2019
9/30/2020
9/30/2019
Interest and Dividend Income
$
7,777
$
8,720
$
23,669
$
26,412
Interest Expense
926
1,245
2,935
4,185
Net Interest and Dividend Income
6,851
7,475
20,734
22,227
Provision for Loan Losses
750
-
1,500
210
All Other Noninterest Income
2,328
1,757
5,846
5,032
Realized Gains on Securities Available-for-Sale, net
-
282
1,175
827
Noninterest Expense
7,336
6,989
22,408
21,881
Net Income Before Gains on Marketable Equity Securities, net
1,093
2,525
3,847
5,995
Gain on Marketable Equity Securities Sold, net
91
188
26
686
Unrealized Gain (Loss) on Marketable Equity Securities Held, net
730
152
(1,089
)
2,316
Income before Income Tax Expense
1,914
2,865
2,784
8,997
Income Tax Expense
300
525
246
1,616
Net Income
$
1,614
$
2,340
$
2,538
$
7,381
Net Income Available to Common Stockholders
$
1,614
$
2,340
$
2,538
$
7,381
Earnings per Common Share, Basic
$
0.59
$
0.85
$
0.92
$
2.68
9/30/2020
12/31/2019
9/30/2019
Balance Sheet
Total Assets
$
1,100,700
$
916,995
$
898,550
Cash and Due from Banks and Interest-Bearing Deposits
134,069
78,639
41,068
Securities Available-for-Sale, at Fair Value
177,066
160,484
166,228
Marketable Equity Securities, at Fair Value
16,608
11,899
18,211
Loans, Net, including loans held for sale
729,733
628,797
636,037
Total Liabilities
1,007,319
825,616
808,805
Retail non-maturity deposits
669,908
508,724
507,265
Municipal non-maturity deposits
104,949
110,602
91,127
Certificates of deposit
101,313
111,771
120,811
Federal Home Loan Bank Advances
-
-
-
Securities Sold Under Agreements to Repurchase
96,206
64,329
59,125
Junior Subordinated Debentures
20,620
20,620
20,620
Stockholders' Equity
93,381
91,379
89,745
Profitability and Efficiency
Net Interest Margin
2.98
%
3.45
%
3.46
%
Yield on Earning Assets
3.39
4.05
4.09
Cost of Interest Bearing Liabilities
0.55
0.77
0.80
Book Value Per Share of Common Shares Outstanding
$
33.94
$
33.21
$
32.61
Tangible Book Value Per Share of Common Shares Outstanding
30.33
29.60
29.00
Capital and Credit
Tier 1 Core Capital to Average Assets
9.50
%
11.43
%
11.11
%
Common Equity Risk-Based Capital
12.80
13.61
12.86
Tier 1 Risk-Based Capital
15.87
16.89
16.02
Total Risk-Based Capital
17.12
18.10
17.20
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
Nonperforming Loans as a % of Total Loans
0.41
0.49
0.48
Allowance for Loan Losses as a % of Nonperforming Loans
288
230
238
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.
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.