Northway Financial, Inc. Announces Second Quarter Earnings and Declares Semi-Annual Dividend

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.