Northway Financial, Inc. Announces First Quarter Earnings
NORTH CONWAY, N.H., April 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 March 31, 2021 of $1.9MM, or $0.69 per basic common share.
President and CEO William J. Woodward commented: “I am pleased to report the results for the first quarter of 2021, which was $1.9 million in net income. This is a significant increase over the first quarter of 2020, where we reported a loss of $1.4 million. The Bank weathered the pandemic and we emerged as a stronger organization. Key performance measures in the first quarter includes an increase in total deposits of 33%, a 280% increase in residential mortgage production, and a 128% increase in municipal loans. Overall, the Bank experienced loan growth of 21% from the prior year. Because of the uncertainty in the economy, we increased our allowance for loan losses by $2.25 million during 2020. Our credit quality continues to show improvement, which is a testament to many of the provisions of the CARES Act. We are in a good position to take advantage of opportunities, as the economy continues to improve. The results are an indication of the trust that our existing customers and new customers have in Northway Bank. None of this would have been possible without the hard work of all our employees.”
Financial Highlights
- Total assets were $1.2 billion, total loans, net, were $763 million, and total deposits were $952 million at March 31, 2021.
- Total loans, net increased $133 million or 21% compared to March 31, 2020.
- Residential real estate loan originations were $39 million in the first three months of the year which was 280% greater than the same period last year.
- Loans to municipalities increased $45 million or 128% compared to March 31, 2020.
- During the quarter, the Bank funded 318 Paycheck Protection Program loans with total balances of $26 million.
- Total deposits increased 33% compared to March 31, 2020 driven by an increase in total non-maturity deposits of $249 million, or 41%.
- The cost of interest bearing liabilities was .33% vs .62% at March 31, 2020.
- The gain on marketable equity securities was $1.3 million compared to a loss of $3.6 million at March 31, 2020.
- Nonperforming loans as a percentage of total loans stood at 0.35% at March 31, 2021 compared to 0.52% at March 31, 2020.
- Regulatory capital ratios at March 31, 2021 were 9.42% Tier 1 Core Capital to Average Assets, 16.57% Total Risk-Based Capital, and 12.45% Common Equity Risk-Based Capital.
- The market price of our common stock, as of April 29, 2021, was $30.90.
| Northway Financial, Inc. | ||||||
| Selected Financial Highlights | ||||||
| (Unaudited) | ||||||
| (Dollars in thousands, except per share data) | Three Months Ended | |||||
| 3/31/2021 | 3/31/2020 | |||||
| Interest and Dividend Income | $ | 7,965 | $ | 8,090 | ||
| Interest Expense | 671 | 1,025 | ||||
| Net Interest and Dividend Income | 7,294 | 7,065 | ||||
| Provision for Loan Losses | - | - | ||||
| All Other Noninterest Income | 1,313 | 1,144 | ||||
| Noninterest Expense | 7,589 | 7,715 | ||||
| Net Income Before Gain (Loss) on Securities | 1,018 | 494 | ||||
| Gain on Securities Available-for-Sale, net | - | 1,142 | ||||
| Gain (Loss) on Marketable Equity Securities | 1,273 | (3,568 | ) | |||
| Income (Loss) before Income Tax Expense | 2,291 | (1,932 | ) | |||
| Income Tax Expense (Benefit) | 392 | (540 | ) | |||
| Net Income | $ | 1,899 | $ | (1,392 | ) | |
| Net Income Available to Common Stockholders | $ | 1,899 | $ | (1,392 | ) | |
| Earnings per Common Share, Basic | $ | 0.69 | $ | (0.51 | ) | |
| 3/31/2021 | 12/31/2020 | 3/31/2020 | |||||||
| Balance Sheet | |||||||||
| Total Assets | $ | 1,182,047 | $ | 1,120,692 | $ | 897,271 | |||
| Cash and Due from Banks and Interest-Bearing Deposits | 162,361 | 167,812 | 68,998 | ||||||
| Securities Available-for-Sale, at Fair Value | 191,526 | 172,117 | 143,700 | ||||||
| Marketable Equity Securities, at Fair Value | 23,965 | 17,901 | 11,910 | ||||||
| Loans Held-for-Sale | - | 237 | 3,444 | ||||||
| Loans, Net | 763,428 | 722,354 | 630,128 | ||||||
| Total Liabilities | 1,086,244 | 1,024,577 | 807,006 | ||||||
| Non Municipal Non-Maturity Deposits | 752,921 | 673,502 | 521,030 | ||||||
| Municipal Non-Maturity Deposits | 107,566 | 116,255 | 90,466 | ||||||
| Certificates of Deposit | 91,870 | 96,476 | 104,871 | ||||||
| Securities Sold Under Agreements to Repurchase | 86,952 | 103,523 | 50,972 | ||||||
| Junior Subordinated Debentures | 20,620 | 20,620 | 20,620 | ||||||
| Stockholders' Equity | 95,803 | 96,115 | 90,265 | ||||||
| Profitability and Efficiency | |||||||||
| Net Interest Margin | 2.76 | % | 2.96 | % | 3.37 | % | |||
| Yield on Earning Assets | 3.01 | 3.34 | 3.84 | ||||||
| Cost of Interest Bearing Liabilities | 0.33 | 0.51 | 0.62 | ||||||
| Book Value Per Share of Common Shares Outstanding | $ | 34.82 | $ | 34.93 | $ | 32.80 | |||
| Tangible Book Value Per Share of Common Shares Outstanding | 30.94 | 31.07 | 29.01 | ||||||
| Capital and Credit | |||||||||
| Tier 1 Core Capital to Average Assets | 9.42 | % | 9.67 | % | 11.13 | % | |||
| Common Equity Risk-Based Capital | 12.45 | 13.05 | 13.07 | ||||||
| Tier 1 Risk-Based Capital | 15.31 | 16.08 | 16.32 | ||||||
| Total Risk-Based Capital | 16.57 | 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
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