NORTH CONWAY, N.H., Oct. 29, 2021 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the “Company”) ( NWYF), the parent company of Northway Bank (the “Bank”), today reported net income for the quarter ended September 30, 2021 of $1.6 million, or $0.58 per basic common share.
President and CEO William J. Woodward commented: “I am pleased to report the results for the first nine months of 2021, which produced $5.7 million in net income. As the pandemic continued to weigh on our business and the state and national economy, we were able to increase our loan balances by 12% since the beginning of the year. The growth was achieved through our very capable residential mortgage and municipal lending teams. Also in the first nine months of 2021, we were able to increase our non maturity retail and commercial deposits by 16% thanks to our retail and commercial banking teams working with our customers. I am also proud to report the Bank achieved $1 billion in deposits for the first time in its history. As we move towards the end of 2021 and into 2022 we are hopeful that the national and state economy will continue to improve.”
Financial Highlights
- Total assets were $1.2 billion, total loans, net, were $813 million, and total deposits were $1.0 billion at September 30, 2021.
- Our total loan portfolio increased $84 million, or 11%, compared to September 30, 2020.
- Loans to municipalities increased $34 million, or 56%, compared to September 30, 2020.
- Thru September 30, 2021, $79 million, or 78%, of Paycheck Protection Program loans originated by the Bank were either forgiven by the SBA or paid back by the borrowers.
- Securities Available-for-Sale, at Fair Value increased $123 million, or 69%, compared to September 30, 2020.
- Marketable Equity Securities, at Fair Value increased $10 million, or 60%, compared to September 30, 2020.
- Total deposits increased 14% compared to September 30, 2020, driven by a 18% increase in total non-maturity deposits of $142 million.
- The cost of interest bearing liabilities was 0.27% compared to 0.55% at September 30, 2020.
- Nonperforming loans as a percentage of total loans stood at 0.27% at September 30, 2021 compared to 0.41% at September 30, 2020.
- The Bank’s regulatory capital ratios at September 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 October 28, 2021, was $32.15.
| Northway Financial, Inc. | ||||||||||||||
| Selected Financial Highlights | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | Nine Months Ended | ||||||||||||
| 9/30/2021 | 9/30/2020 | 9/30/2021 | 9/30/2020 | |||||||||||
| Interest and Dividend Income | $ | 8,754 | $ | 7,777 | $ | 24,855 | $ | 23,669 | ||||||
| Interest Expense | 519 | 926 | 1,745 | 2,935 | ||||||||||
| Net Interest and Dividend Income | 8,235 | 6,851 | 23,110 | 20,734 | ||||||||||
| Provision for Loan Losses | - | 750 | - | 1,500 | ||||||||||
| All Other Noninterest Income | 1,112 | 2,328 | 3,718 | 5,846 | ||||||||||
| Noninterest Expense | 7,172 | 7,336 | 21,994 | 22,408 | ||||||||||
| Net Income Before Gain (Loss) on Securities | 2,175 | 1,093 | 4,834 | 2,672 | ||||||||||
| Gain on Securities Available-for-Sale, net | 63 | - | 63 | 1,175 | ||||||||||
| Gain (Loss) on Marketable Equity Securities | (326 | ) | 821 | 2,025 | (1,063 | ) | ||||||||
| Income (Loss) before Income Tax Expense | 1,912 | 1,914 | 6,922 | 2,784 | ||||||||||
| Income Tax Expense (Benefit) | 332 | 300 | 1,206 | 247 | ||||||||||
| Net Income | $ | 1,580 | $ | 1,614 | $ | 5,716 | $ | 2,537 | ||||||
| Net Income Available to Common Stockholders | $ | 1,580 | $ | 1,614 | $ | 5,716 | $ | 2,537 | ||||||
| Earnings per Common Share, Basic | $ | 0.58 | $ | 0.59 | $ | 2.08 | $ | 0.92 | ||||||
| 9/30/2021 | 12/31/2020 | 9/30/2020 | |||||||||
| Balance Sheet | |||||||||||
| Total Assets | $ | 1,228,436 | $ | 1,120,692 | $ | 1,100,700 | |||||
| Cash and Due from Banks and Interest-Bearing Deposits | 48,523 | 167,812 | 134,069 | ||||||||
| Securities Available-for-Sale, at Fair Value | 299,705 | 172,117 | 177,066 | ||||||||
| Marketable Equity Securities, at Fair Value | 26,603 | 17,901 | 16,608 | ||||||||
| Loans Held-for-Sale | 3 | 237 | 2,863 | ||||||||
| Loans, Net | 813,473 | 722,354 | 729,733 | ||||||||
| Total Liabilities | 1,130,268 | 1,024,577 | 1,007,319 | ||||||||
| Non Municipal Non-Maturity Deposits | 796,369 | 673,502 | 669,908 | ||||||||
| Municipal Non-Maturity Deposits | 120,631 | 116,255 | 104,949 | ||||||||
| Certificates of Deposit | 82,604 | 96,476 | 101,313 | ||||||||
| Securities Sold Under Agreements to Repurchase | 96,464 | 103,523 | 96,206 | ||||||||
| Junior Subordinated Debentures | 20,620 | 20,620 | 20,620 | ||||||||
| Stockholders' Equity | 98,168 | 96,115 | 93,381 | ||||||||
| Profitability and Efficiency | |||||||||||
| Net Interest Margin | 2.78 | % | 2.96 | % | 2.98 | % | |||||
| Yield on Earning Assets | 2.98 | 3.34 | 3.39 | ||||||||
| Cost of Interest Bearing Liabilities | 0.27 | 0.51 | 0.55 | ||||||||
| Book Value Per Share of Common Shares Outstanding | $ | 35.68 | $ | 34.93 | $ | 33.94 | |||||
| Tangible Book Value Per Share of Common Shares Outstanding | 31.84 | 31.07 | 30.06 | ||||||||
| Capital and Credit | |||||||||||
| Tier 1 Core Capital to Average Assets | 8.98 | % | 9.67 | % | 9.50 | % | |||||
| Common Equity Risk-Based Capital | 11.56 | 13.05 | 12.80 | ||||||||
| Tier 1 Risk-Based Capital | 14.13 | 16.08 | 15.87 | ||||||||
| Total Risk-Based Capital | 15.37 | 17.34 | 17.12 | ||||||||
| 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
