Northway Financial, Inc. Announces Third Quarter Earnings
October 29, 2021 at 01:01 pm
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NORTH CONWAY, N.H., Oct. 29, 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 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.
Northway Financial, Inc. is a bank holding company for Northway Bank (the Bank). The Bank is engaged principally in the business of attracting deposits from the general public and investing those deposits in securities, commercial loans, real estate loans and consumer loans. It has six segments. Residential segment offers first lien mortgages and home equity loans. Construction segment offers residential construction and commercial real estate construction loans. Commercial segment offers loans, which are secured primarily by income-producing investor-owned or owner-occupied business properties. Commercial segment offers loans, which are made to businesses and are generally secured by assets of the business. Consumer segment offers automobile and aircraft loans, and repayment is dependent on the credit quality of the individual borrower. Municipal segment offers loans, which are generally unsecured, and repayment is dependent on the tax assessments of the local municipalities.
NORTHWAY FINANCIAL, INC. 
