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CST: 20/11/2019 03:34:59   

Northway Financial, Inc. Announces Third Quarter Earnings

18 Days ago

NORTH CONWAY, N.H., Nov. 01, 2019 (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, 2019 of $2.3MM, or $0.85 per basic common share.  Year-to-date, the Company reported net income of $7.4MM, or $2.68 per basic common share.

Financial Highlights

  • Total assets were $899MM, total loans, net, were $636MM, and total deposits were $719MM at September 30, 2019.
  • Loans, net, increased $8.3MM when compared to December 31, 2018 even though $34MM of portfolio residential fixed rate loans were sold during 2019.
  • During the first nine months of the year, the Bank sold $34MM in portfolio fixed rate residential loans and $21MM of newly originated fixed rate residential loans and recorded gain on loan sales of $936 thousand.
  • Total assets decreased $28MM as compared to December 31, 2018 which was the result of cash flows from securities available-for-sale that was used to paydown liabilities.
  • Excluding marketable equity securities gains, both realized and unrealized, year to date pretax net income was $6.0MM, a 60% increase compared to the same period in 2018.
  • The net interest margin for the nine months ending September 30, 2019 was 3.46% up from 3.35% for the same period last year.
  • The yield on earning assets was 4.09% and the cost of interest-bearing liabilities was 0.80%, for the nine months ended September 30, 2019.
  • For the period ending September 30, 2019, the trailing twelve months Return on Average Assets was 0.66% and Return on Average Equity was 7.21%.
  • Regulatory capital ratios at September 30, 2019 were 11.11% Tier 1 Core Capital to Average Assets, 17.20% Total Risk-Based Capital, and 12.86% Common Equity Risk-Based Capital.
  • Nonperforming loans as a percentage of total loans stood at 0.48% at September 30, 2019.
  • The market price of our common stock, as of October 25, 2019, was $33.00.
 
 
Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)
               
(Dollars in thousands, except per share data) Three Months Ended   Nine Months Ended
  9/30/19   9/30/18   9/30/19   9/30/18
               
Interest and Dividend Income $ 8,720   $ 8,758   $ 26,412   $ 25,105  
Interest Expense   1,245     1,322     4,185     3,456  
Net Interest and Dividend Income   7,475     7,436     22,227     21,649  
Provision for Loan Losses   -     195     210     195  
All Other Noninterest Income   1,757     1,295     5,032     3,724  
Realized Gains on Securities Available-for-Sale, net   282     40     827     40  
Noninterest Expense   6,989     7,087     21,881     21,468  
Net Income Before Gains on Marketable Equity Securities, net   2,525     1,489     5,995     3,750  
Gain on Marketable Equity Securities Sold, net   188     241     686     496  
Unrealized Gain (Loss) on Marketable Equity Securities Held, net   152     1,090     2,316     (34 )
Income before Income Tax Expense   2,865     2,820     8,997     4,212  
Income Tax Expense   525     120     1,616     37  
Net Income $ 2,340   $ 2,700   $ 7,381   $ 4,175  
Net Income Available to Common Stockholders $ 2,340   $ 2,700   $ 7,381   $ 4,175  
Earnings per Common Share, Basic $ 0.85   $ 0.98   $ 2.68   $ 1.52  

 

    9/30/19     12/31/18     9/30/18  
                   
Balance Sheet                  
Total Assets   $ 898,550     $ 926,898     $ 969,123  
Cash and Due from Banks and Interest-Bearing Deposits     41,068       18,132       18,713  
Securities Available-for-Sale, at Fair Value     166,228       225,409       223,150  
Marketable Equity Securities, at Fair Value     18,211       17,978       19,956  
Loans, Net, including loans held for sale     636,037       627,915       663,770  
Total Liabilities     808,805       847,480       891,237  
Retail non-maturity deposits     507,265       494,793       511,753  
Municipal non-maturity deposits     91,127       101,746       92,707  
Certificates of deposit     120,811       128,993       175,830  
Federal Home Loan Bank Advances     -       13,848       23,396  
Securities Sold Under Agreements to Repurchase     59,125       79,340       57,640  
Junior Subordinated Debentures     20,620       20,620       20,620  
Stockholders' Equity     89,745       79,418       77,886  
Profitability and Efficiency                        
Net Interest Margin     3.46 %     3.36 %     3.35 %
Yield on Earning Assets     4.09       3.91       3.86  
Cost of Interest Bearing Liabilities     0.80       0.70       0.65  
Book Value Per Share of Common Shares Outstanding   $ 32.61     $ 28.86     $ 28.30  
Tangible Book Value Per Share of Common Shares Outstanding     29.00       25.25       24.68  
Capital and Credit                        
Tier 1 Core Capital to Average Assets     11.11 %     9.83 %     10.13 %
Common Equity Risk-Based Capital     12.86       12.08       11.78  
Tier 1 Risk-Based Capital     16.02       15.27       14.83  
Total Risk-Based Capital     17.20       16.44       15.93  
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     0.48       0.34       0.52  
Allowance for Loan Losses as a % of Nonperforming Loans     238       323       235  
                         

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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