NORTH CONWAY, N.H., July 31, 2020 (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, 2020 of $2.3MM, or $0.84 per basic common share. Year-to-date, the Company reported net income of $923M, or $0.34 per basic common share.
The Board of Directors has declared a semi-annual cash dividend of $0.35 per share, payable on August 10, 2020, to common stockholders of record on August 3, 2020 Based on a share price of $23.35 on July 24, 2020, this semi-annual dividend, when annualized, results in a dividend yield of approximately 2.17%. The Company’s common stock is available through brokers and is quoted on the OTCQB under the stock symbol “NWYF”.
William J. Woodward, President and Chief Executive Officer, stated, “During these unprecedented times, the Bank remains steadfast in using all of our available resources to enhance shareholder value, which is why we are continuing our current level of dividend. We are overwhelmed by the loyalty that our customers have exhibited during the COVID-19 pandemic. To help our small business and commercial customers, we processed 670 loans through the Paycheck Protection Program, of which 144 loans were for new customers. Our deposit growth has been very significant, reflecting the faith our customers have in our financial institution. Handling this significant level of growth has required our dedicated staff to work at an incredible pace. All of us at Northway are proud of the role we play as an essential business in this pandemic.”
Financial Highlights
- Included in year-to-date net income of $923M was $1.8MM in unrealized equity security losses, which accounting standards now require us to report in our income statement.
- Excluding marketable equity securities gains, both realized and unrealized, year-to-date pretax net income was $2.8MM.
- Total assets were $1.07B, total loans, net, were $692MM, and total deposits were $836MM at June 30, 2020.
- Total loans, net, including loans held for sale, increased $63MM from December 31, 2019 to $692MM
- The increase in loans was driven by the origination of $68MM in PPP loans which are 100% guaranteed by the Small Business Administration.
- 670 Paycheck Protection Program loans were originated and funded, of which 144, or 22%, were for new customers to the Bank.
- Total deposits at June 30, 2020 were $836MM, an increase of $105MM, or 14%, from December 31, 2019. The increase is primarily attributable to federal and state funds from COVID-19 economic relief and stimulus programs deposited into our customers’ accounts.
- During the first six months of 2020, total originations of residential first mortgage loans were $57 MM, an 84% increase from the same period in 2019.
- $35 MM of the residential first mortgage loan originations were sold for a realized gain on sale of $1.1MM.
- The net interest margin at June 30, 2020 was 3.26%.
- Nonperforming loans as a percentage of total loans stood at 0.48% at June 30, 2020.
- Regulatory capital ratios at June 30, 2020 were 10.51% Tier 1 Core Capital to Average Assets, 17.51% Total Risk-Based Capital, and 13.10% Common Equity Risk-Based Capital.
- The market price of our common stock, as of July 24, 2020, was $23.35.
| Selected Financial Highlights | |||||||||||||
| (Unaudited) | |||||||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | Six Months Ended | |||||||||||
| 6/30/2020 | 6/30/2019 | 6/30/2020 | 6/30/2019 | ||||||||||
| Interest and Dividend Income | $ | 7,802 | $ | 8,806 | $ | 15,892 | $ | 17,692 | |||||
| Interest Expense | 984 | 1,475 | 2,009 | 2,940 | |||||||||
| Net Interest and Dividend Income | 6,818 | 7,331 | 13,883 | 14,752 | |||||||||
| Provision for Loan Losses | 750 | 210 | 750 | 210 | |||||||||
| All Other Noninterest Income | 2,374 | 1,717 | 3,518 | 3,275 | |||||||||
| Realized Gains on Securities Available-for-Sale, net | 33 | 388 | 1,175 | 545 | |||||||||
| Noninterest Expense | 7,357 | 7,651 | 15,072 | 14,892 | |||||||||
| Net Income Before Gains on Marketable Equity Securities, net | 1,118 | 1,575 | 2,754 | 3,470 | |||||||||
| (Loss) Gain on Marketable Equity Securities Sold, net | (65 | ) | 225 | (65 | ) | 498 | |||||||
| Unrealized Gain (Loss) on Marketable Equity Securities Held, net | 1,749 | 238 | (1,819 | ) | 2,164 | ||||||||
| Income Before Income Tax Expense | 2,802 | 2,038 | 870 | 6,132 | |||||||||
| Income Tax (Benefit) Expense | 487 | 294 | (53 | ) | 1,092 | ||||||||
| Net Income | $ | 2,315 | $ | 1,744 | $ | 923 | $ | 5,040 | |||||
| Net Income Available to Common Stockholders | $ | 2,315 | $ | 1,744 | $ | 923 | $ | 5,040 | |||||
| Earnings per Common Share, Basic | $ | 0.84 | $ | 0.63 | $ | 0.34 | $ | 1.83 | |||||
| 6/30/20 | 12/31/2019 | 6/30/2019 | |||||||
| Balance Sheet | |||||||||
| Total Assets | $ | 1,065,015 | $ | 916,995 | $ | 933,770 | |||
| Cash and Due from Banks and Interest-Bearing Deposits | 160,342 | 78,639 | 36,399 | ||||||
| Securities Available-for-Sale, at Fair Value | 154,067 | 160,484 | 195,173 | ||||||
| Marketable Equity Securities, at Fair Value | 13,607 | 11,899 | 17,611 | ||||||
| Loans, Net | 691,777 | 628,797 | 644,227 | ||||||
| Total Liabilities | 972,286 | 825,616 | 846,020 | ||||||
| Retail Non-Maturity Deposits | 644,427 | 508,724 | 494,974 | ||||||
| Municipal Non-Maturity Deposits | 107,663 | 110,602 | 98,764 | ||||||
| Certificates of Deposit | 84,071 | 111,771 | 154,390 | ||||||
| Securities Sold Under Agreements to Repurchase | 99,635 | 64,329 | 67,430 | ||||||
| Junior Subordinated Debentures | 20,620 | 20,620 | 20,620 | ||||||
| Stockholders' Equity | 92,729 | 91,379 | 87,750 | ||||||
| Profitability and Efficiency | |||||||||
| Net Interest Margin | 3.26 | % | 3.45 | % | 3.44 | % | |||
| Yield on Earning Assets | 3.72 | 4.05 | 4.11 | ||||||
| Cost of Interest Bearing Liabilities | 0.59 | 0.77 | 0.84 | ||||||
| Book Value Per Share of Common Shares Outstanding | $ | 33.70 | $ | 33.21 | $ | 31.89 | |||
| Tangible Book Value Per Share of Common Shares Outstanding | 30.09 | 29.60 | 28.28 | ||||||
| Capital and Credit | |||||||||
| Tier 1 Core Capital to Average Assets | 10.51 | % | 11.43 | % | 10.92 | % | |||
| Common Equity Risk-Based Capital | 13.10 | 13.61 | 12.47 | ||||||
| Tier 1 Risk-Based Capital | 16.26 | 16.89 | 15.60 | ||||||
| Total Risk-Based Capital | 17.51 | 18.10 | 16.77 | ||||||
| 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 | 0.49 | 0.53 | ||||||
| Allowance for Loan Losses as a % of Nonperforming Loans | 260 | 230 | 216 | ||||||
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