NORTH CONWAY, N.H., July 26, 2019 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the “Company”) ( NWYF), the parent company of Northway Bank (the “Bank”), today reported net income for the quarter ended June 30, 2019 of $1.7MM, or $0.63 per basic common share. Year-to-date, the Company reported net income of $5.0MM, or $1.83 per basic common share.
The Board of Directors has declared a semi-annual cash dividend of $0.35 per share, payable on August 12, 2019, to common stockholders of record on August 5, 2019. The payment of this dividend results in a 55% payout ratio based on net income available to common stockholders. Based on a share price of $30.06 on July 19, 2019, this semi-annual dividend, when annualized, results in a dividend yield of approximately 2.33%. The Company’s common stock is available through brokers and is quoted on the OTCQB under the stock symbol “NWYF”.
Financial Highlights
- Total assets were $934MM, total loans, net, were $644MM, and total deposits were $748MM at June 30, 2019.
- Loans, net, including loans held for sale, increased $19.4MM from December 31, 2018 to $648MM and increased $26.2MM from June 30, 2018.
- In April 2019, the Bank sold $17.3MM in residential loans at a gain of $372M.
- The 2018 accounting change requiring unrealized gains/losses on equity securities to be recognized in the income statement accounted for $2.2MM of pretax income as of June 30, 2019.
- Excluding marketable equity securities gains, both realized and unrealized, year to date pretax net income was $3.5MM, a 53% increase compared to the same period in 2018.
- The net interest margin at June 30, 2019 was 3.44%.
- The yield on earning assets was 4.11% and the cost of interest-bearing liabilities was 0.84%, for the quarter ended June 30, 2019.
- For the quarter ended June 30, 2019, the trailing twelve months Return on Average Assets was 0.70% and Return on Average Equity was 7.81%.
- Regulatory capital ratios at June 30, 2019 were 10.92% Tier 1 Core Capital to Average Assets, 16.77% Total Risk-Based Capital, and 12.47% Common Equity Risk-Based Capital.
- Nonperforming loans as a percentage of total loans stood at 0.53% at June 30, 2019.
- The market price of our common stock, as of July 19, 2019, was $30.06.
| Northway Financial, Inc. | |||||||||||||
| Selected Financial Highlights | |||||||||||||
| (Unaudited) | |||||||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | Six Months Ended | |||||||||||
| 6/30/2019 | 6/30/2018 | 6/30/2019 | 6/30/2018 | ||||||||||
| Interest and Dividend Income | $ | 8,806 | $ | 8,321 | $ | 17,692 | $ | 16,347 | |||||
| Interest Expense | 1,475 | 1,261 | 2,940 | 2,134 | |||||||||
| Net Interest and Dividend Income | 7,331 | 7,060 | 14,752 | 14,213 | |||||||||
| Provision for Loan Losses | 210 | - | 210 | - | |||||||||
| All Other Noninterest Income | 1,717 | 1,258 | 3,275 | 2,429 | |||||||||
| Realized Gains on Securities Available-for-Sale, net | 388 | - | 545 | - | |||||||||
| Noninterest Expense | 7,651 | 7,029 | 14,892 | 14,381 | |||||||||
| Net Income Before Gains on Marketable Equity Securities, net | 1,575 | 1,289 | 3,470 | 2,261 | |||||||||
| Gain on Marketable Equity Securities Sold, net | 225 | 115 | 498 | 255 | |||||||||
| Unrealized Gain (Loss) on Marketable Equity Securities Held, net | 238 | (233 | ) | 2,164 | (1,124 | ) | |||||||
| Income before Income Tax Expense | 2,038 | 1,171 | 6,132 | 1,392 | |||||||||
| Income Tax Expense (Benefit) | 294 | 110 | 1,092 | (84 | ) | ||||||||
| Net Income | $ | 1,744 | $ | 1,061 | $ | 5,040 | $ | 1,476 | |||||
| Net Income Available to Common Shareholders | $ | 1,744 | $ | 1,061 | $ | 5,040 | $ | 1,476 | |||||
| Earnings per Common Share, Basic | $ | 0.63 | $ | 0.39 | $ | 1.83 | $ | 0.54 | |||||
| 6/30/2019 | 12/31/2018 | 6/30/2018 | ||||||||
| Balance Sheet | ||||||||||
| Total Assets | $ | 933,770 | $ | 926,898 | $ | 944,440 | ||||
| Cash and Due from Banks and Interest-Bearing Deposits | 36,399 | 18,132 | 20,065 | |||||||
| Securities Available-for-Sale, at Fair Value | 195,173 | 225,409 | 242,643 | |||||||
| Marketable Equity Securities, at Fair Value | 17,611 | 17,978 | 19,972 | |||||||
| Loans, Net, including loans held for sale | 647,733 | 628,343 | 621,581 | |||||||
| Total Liabilities | 846,020 | 847,480 | 866,482 | |||||||
| Retail Non-Maturity Deposits | 494,974 | 494,793 | 501,537 | |||||||
| Municipal Non-Maturity Deposits | 98,764 | 101,746 | 106,408 | |||||||
| Certificates of Deposit | 154,390 | 128,993 | 109,037 | |||||||
| Federal Home Loan Bank Advances | - | 13,848 | 59,987 | |||||||
| Securities Sold Under Agreements to Repurchase | 67,430 | 79,340 | 60,545 | |||||||
| Junior Subordinated Debentures | 20,620 | 20,620 | 20,620 | |||||||
| Shareholders' Equity | 87,750 | 79,418 | 77,958 | |||||||
| Profitability and Efficiency | ||||||||||
| Net Interest Margin | 3.44 | % | 3.36 | % | 3.36 | % | ||||
| Yield on Earning Assets | 4.11 | 3.91 | 3.85 | |||||||
| Cost of Interest Bearing Liabilities | 0.84 | 0.70 | 0.61 | |||||||
| Book Value Per Share of Common Shares Outstanding | $ | 31.89 | $ | 28.86 | $ | 28.33 | ||||
| Tangible Book Value Per Share of Common Shares Outstanding | 28.28 | 25.25 | 24.71 | |||||||
| Capital and Credit | ||||||||||
| Tier 1 Core Capital to Average Assets | 10.92 | % | 9.83 | % | 10.22 | % | ||||
| Common Equity Risk-Based Capital | 12.47 | 12.08 | 11.86 | |||||||
| Tier 1 Risk-Based Capital | 15.60 | 15.27 | 15.00 | |||||||
| Total Risk-Based Capital | 16.77 | 16.44 | 16.13 | |||||||
| 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 | 0.53 | 0.34 | 0.56 | |||||||
| Allowance for Loan Losses as a % of Nonperforming Loans | 216 | 323 | 219 | |||||||
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
