Northway Financial, Inc. Announces Second Quarter Earnings and Declares Semi-Annual Dividend
Rhea-AI Summary
Northway Financial, Inc. (NWYF) reported a net income of $2.2 million, or $0.81 per share, for Q2 2021, with a year-to-date net income of $4.1 million, or $1.50 per share. The Board declared a semi-annual cash dividend of $0.35 per share, payable on August 16, 2021. Key highlights include an 11% increase in both loans and deposits, a significant 137% rise in municipal loans, and nonperforming loans at just 0.30%. Total assets reached $1.2 billion, with a net interest margin of 2.76%. President William J. Woodward expressed optimism for continued growth in the second half of 2021.
Positive
- Net income increased to $4.1 million YTD, up from $923K last year.
- Total loans increased by 15% YOY to $799 million.
- Deposits rose by 17% YOY to $980 million.
- Nonperforming loans lowered to 0.30% of total loans.
- Cash dividend of $0.35 per share declared.
Negative
- Provision for loan losses remained at zero, indicating potential risk management concerns.
- Net interest margin decreased from 3.17% to 2.76% YOY.
News Market Reaction – NWYF
On the day this news was published, NWYF gained 2.22%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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
The Board of Directors declared a semi-annual cash dividend of
President and CEO William J. Woodward commented: “I am pleased to report the results for the first six months of 2021, which produced
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 or15% compared to June 30, 2020. - Loans to municipalities increased
$57.1 million or137% 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 or86% compared to June 30, 2020. - Marketable Equity Securities, at Fair Value increased
$14 million or102% compared to June 30, 2020. - Total deposits increased
17% compared to June 30, 2020 driven by a22% increase in total non-maturity deposits of$161 million . - The cost of interest bearing liabilities was
0.30% vs0.59% at June 30, 2020. - Nonperforming loans as a percentage of total loans stood at
0.30% at June 30, 2021 compared to0.43% 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.
FAQ
What are the Q2 2021 earnings of Northway Financial, Inc. (NWYF)?
How much did Northway Financial increase their loan portfolio in 2021?
What is the current dividend payout for NWYF?
What is the state of nonperforming loans at Northway Financial?
How have the deposits changed for Northway Financial?
