Northway Financial, Inc. Announces Second Quarter Earnings and Declares Semi-Annual Dividend
Northway Financial (OTCQB: NWYF) reported net income of $859,000 ($0.31 per share) for Q2 2024, down from $1.7 million ($0.63 per share) in Q2 2023. For the first half of 2024, net income was $2.4 million ($0.86 per share), compared to $3.1 million ($1.13 per share) in H1 2023. The company declared a semi-annual dividend of $0.35 per share. Total assets decreased to $1.3 billion, with loans at $919 million and deposits at $1 billion. The decrease in assets was driven by reductions in securities and loans. Non-municipal deposits decreased slightly, while wholesale funding saw a significant reduction. Net interest margin decreased from 2.70% to 2.60% year-over-year due to increased funding costs.
Northway Financial (OTCQB: NWYF) ha riportato un utile netto di $859.000 ($0,31 per azione) per il secondo trimestre del 2024, in calo rispetto ai $1,7 milioni ($0,63 per azione) del secondo trimestre del 2023. Per i primi sei mesi del 2024, l'utile netto è stato di $2,4 milioni ($0,86 per azione), rispetto ai $3,1 milioni ($1,13 per azione) del primo semestre del 2023. L'azienda ha dichiarato un dividendo semestrale di $0,35 per azione. Il totale degli attivi è diminuito a $1,3 miliardi, con prestiti a $919 milioni e depositi a $1 miliardo. La diminuzione degli attivi è stata causata da riduzioni in titoli e prestiti. I depositi non municipali sono diminuiti leggermente, mentre il finanziamento all'ingrosso ha subito una riduzione significativa. Il margine di interesse netto è sceso dal 2,70% al 2,60% anno su anno a causa dell'aumento dei costi di finanziamento.
Northway Financial (OTCQB: NWYF) reportó un ingreso neto de $859,000 ($0.31 por acción) para el segundo trimestre de 2024, una disminución desde los $1.7 millones ($0.63 por acción) en el segundo trimestre de 2023. Para la primera mitad de 2024, el ingreso neto fue de $2.4 millones ($0.86 por acción), en comparación con $3.1 millones ($1.13 por acción) en la primera mitad de 2023. La empresa declaró un dividendo semestral de $0.35 por acción. Los activos totales disminuyeron a $1.3 mil millones, con préstamos de $919 millones y depósitos de $1 mil millones. La disminución de activos se debió a reducciones en valores y préstamos. Los depósitos no municipales disminuyeron ligeramente, mientras que la financiación mayorista experimentó una reducción significativa. El margen de interés neto disminuyó del 2.70% al 2.60% año tras año debido al aumento de los costos de financiación.
Northway Financial (OTCQB: NWYF)는 2024년 2분기에 순이익 $859,000 ($0.31 주당)을 보고했으며, 이는 2023년 2분기의 $1.7백만 ($0.63 주당)에서 감소한 수치입니다. 2024년 상반기 동안 순이익은 $2.4백만 ($0.86 주당)으로, 2023년 상반기의 $3.1백만 ($1.13 주당)과 비교됩니다. 회사는 주당 $0.35의 반기 배당금을 선언했습니다. 총 자산은 $1.3백억으로 감소했으며, 대출은 $919백만, 예금은 $1백억입니다. 자산 감소는 증권과 대출의 줄어듦으로 인해 발생했습니다. 비지방 예금은 약간 감소했으며 도매 자금 조달은 크게 감소했습니다. 순이자 마진은 자금 조달 비용 증가로 인해 전년 대비 2.70%에서 2.60%로 감소했습니다.
Northway Financial (OTCQB: NWYF) a rapporté un revenu net de 859 000 $ (0,31 $ par action) pour le deuxième trimestre 2024, en baisse par rapport à 1,7 million $ (0,63 $ par action) au deuxième trimestre 2023. Pour la première moitié de 2024, le revenu net était de 2,4 millions $ (0,86 $ par action), contre 3,1 millions $ (1,13 $ par action) durant le premier semestre 2023. La société a déclaré un dividende semi-annuel de 0,35 $ par action. Les actifs totaux ont diminué à 1,3 milliard $, avec des prêts s'élevant à 919 millions $ et des dépôts à 1 milliard $. La diminution des actifs a été provoquée par des réductions dans les valeurs mobilières et les prêts. Les dépôts non municipaux ont légèrement diminué, tandis que le financement en gros a connu une réduction significative. La marge d'intérêt nette a diminué de 2,70 % à 2,60 % d'une année sur l'autre en raison de l'augmentation des coûts de financement.
Northway Financial (OTCQB: NWYF) berichtete von einem Nettoeinkommen von $859.000 ($0,31 pro Aktie) für das zweite Quartal 2024, was einen Rückgang von $1,7 Millionen ($0,63 pro Aktie) im zweiten Quartal 2023 darstellt. Für die erste Hälfte von 2024 betrug das Nettoeinkommen $2,4 Millionen ($0,86 pro Aktie), im Vergleich zu $3,1 Millionen ($1,13 pro Aktie) in der ersten Hälfte von 2023. Das Unternehmen erklärte eine halbjährliche Dividende von $0,35 pro Aktie. Die Gesamtsumme der Vermögenswerte sank auf $1,3 Milliarden, wobei die Kredite $919 Millionen und die Einlagen $1 Milliarde betrugen. Der Rückgang der Vermögenswerte war auf Reduzierungen bei Wertpapieren und Krediten zurückzuführen. Die nicht kommunalen Einlagen sanken leicht, während die Großfinanzierung einen signifikanten Rückgang verzeichnete. Die Nettozinsspanne sank von 2,70% auf 2,60% im Vergleich zum Vorjahr aufgrund gestiegener Finanzierungskosten.
- Declared semi-annual cash dividend of $0.35 per share
- Maintained strong capital ratios, exceeding well-capitalized thresholds
- Reduced reliance on wholesale funding by $68 million compared to June 30, 2023
- Low non-performing loans at 0.38% of total loans
- Net income decreased by 49.5% in Q2 2024 compared to Q2 2023
- Total assets decreased by $94 million compared to June 30, 2023
- Net interest margin declined from 2.70% to 2.60% year-over-year
- Non-municipal deposits decreased by $23 million compared to June 30, 2023
NORTH CONWAY, N.H., July 26, 2024 (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, 2024 of
The Board of Directors declared a semi-annual cash dividend of
President and CEO William J. Woodward commented: “During the first six months of 2024 we continued to focus on retaining and increasing our core deposit base while reducing our reliance on wholesale funding. We also have taken a cautious view on lending with added emphasis on strengthening our relationship with existing customers. We have also attempted to encourage a full banking relationship with new customers. The increased cost of deposits has impacted earnings, but we are confident that repositioning the balance sheet will provide the best path forward to increase shareholder value over the long term. Finally, I am pleased to announce the payment of our semi-annual dividend which has been uninterrupted since Northway Financial was formed in 1997.”
Financial Highlights
- Total Assets were
$1.3 billion , Loans, Net, were$919 million , and Total Deposits were$1 billion at June 30, 2024. - Total Assets decreased
$94 million compared to June 30, 2023, driven by decreases in Securities Available-for-Sale at Fair Value of$46 million , Loans, Net of$31 million , and Cash and Due from Banks and Interest-Bearing Deposits. - The decrease in Securities Available-for-Sale at Fair Value was primarily due to the sale of
$30 million in securities in December 2023. - The decrease in Loans, Net was the result of decreases in Commercial and Residential Real Estate loans of
$50 million partially offset by an increase in Municipal Loans of$20 million , compared to June 30, 2023. - Non-Municipal Deposits (excluding brokered deposits) decreased
$23 million , or0.4% , compared to June 30, 2023, the result of a decrease in Commercial Deposits of$15 million and a decrease in Retail Deposits of$7 million . - Non-Municipal Deposits (excluding brokered deposits) were unchanged, compared to December 31, 2023.
- Wholesale Funding, which includes brokered deposits and borrowings, decreased
$68 million compared to June 30, 2023, and$30 million compared to December 31, 2023. - Net Income for the six-month period ending June 30, 2024, was
$2.4 million or$0.86 per basic common share. - Year-to-date Net Interest Income was
$1.9 million lower than the same period last year driven by an increase in interest expense of$1.8 million . - Year-to-date Net Interest Margin decreased from
2.70% to2.60% as funding costs increased .47% while the yield on earning assets increased0.27% , when compared to year-to-date June 30, 2023. - Nonperforming loans as a percentage of total loans stood at
0.38% compared to0.25% at June 30, 2023. - Total delinquent loans as a percentage of total loans were
0.07% compared to0.05% at June 30, 2023. - The Bank’s regulatory capital ratios at June 30, 2024 exceeded all well-capitalized ratios as defined under FDIC’s prompt corrective action rules.
- The market price of our common stock, as of July 25, 2024, was
$19.55 .
| Northway Financial, Inc. Selected Financial Highlights (Unaudited) | ||||||||||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | Six Months Ended | ||||||||||||||
| 6/30/2024 | 6/30/2023 | 6/30/2024 | 6/30/2023 | |||||||||||||
| Interest and Dividend Income | $ | 12,216 | $ | 12,940 | $ | 24,804 | $ | 24,888 | ||||||||
| Interest Expense | 4,826 | 4,545 | 9,177 | 7,430 | ||||||||||||
| Net Interest and Dividend Income | 7,390 | 8,395 | 15,627 | 17,458 | ||||||||||||
| Provision for Credit Losses | - | - | - | - | ||||||||||||
| All Other Noninterest Income | 1,117 | 1,253 | 2,374 | 2,499 | ||||||||||||
| Noninterest Expense | 7,710 | 7,836 | 15,796 | 16,310 | ||||||||||||
| Net Income Before Gain (Loss) on Securities | 797 | 1,812 | 2,205 | 3,647 | ||||||||||||
| Gain (Loss) on Securities Available-for-Sale, Net | - | - | - | - | ||||||||||||
| (Loss) Gain on Marketable Equity Securities | (11 | ) | 140 | 266 | (110 | ) | ||||||||||
| Income before Income Tax (Benefit) Expense | 786 | 1,952 | 2,471 | 3,537 | ||||||||||||
| Income Tax (Benefit) Expense | (73 | ) | 229 | 100 | 439 | |||||||||||
| Net Income | $ | 859 | $ | 1,723 | $ | 2,371 | $ | 3,098 | ||||||||
| Net Income Available to Common Stockholders | $ | 859 | $ | 1,723 | $ | 2,371 | $ | 3,098 | ||||||||
| Earnings per Common Share, Basic | $ | 0.31 | $ | 0.63 | $ | 0.86 | $ | 1.13 | ||||||||
| 6/30/2024 | 12/31/2023 | 6/30/2023 | ||||||||||
| Balance Sheet | ||||||||||||
| Total Assets | $ | 1,276,475 | $ | 1,290,467 | $ | 1,369,352 | ||||||
| Cash and Due from Banks and Interest-Bearing Deposits | 62,567 | 68,887 | 74,260 | |||||||||
| Securities Available-for-Sale, at Fair Value | 234,823 | 246,756 | 281,187 | |||||||||
| Marketable Equity Securities, at Fair Value | 2,856 | 2,589 | 5,606 | |||||||||
| Loans Held-for-Sale | 767 | - | 469 | |||||||||
| Loans, Net | 918,579 | 909,781 | 949,547 | |||||||||
| Total Liabilities | 1,204,177 | 1,217,230 | 1,301,879 | |||||||||
| Non Municipal Non-Maturity Deposits | 697,713 | 734,741 | 760,416 | |||||||||
| Municipal Non-Maturity Deposits | 154,469 | 133,100 | 149,713 | |||||||||
| Certificates of Deposit | 162,525 | 127,726 | 151,182 | |||||||||
| Securities Sold Under Agreements to Repurchase | 53,301 | 55,353 | 63,878 | |||||||||
| Short-Term Borrowings | 50,000 | 65,000 | 59,500 | |||||||||
| Long-Term Debt | 45,000 | 60,000 | 75,000 | |||||||||
| Junior Subordinated Debentures | 20,620 | 20,620 | 20,620 | |||||||||
| Stockholders' Equity | 72,298 | 73,237 | 67,473 | |||||||||
| Profitability and Efficiency | ||||||||||||
| Net Interest Margin | 2.60 | % | 2.63 | % | 2.70 | % | ||||||
| Yield on Earning Assets | 4.09 | 3.90 | 3.82 | |||||||||
| Cost of Interest Bearing Liabilities | 1.93 | 1.63 | 1.45 | |||||||||
| Book Value Per Share of Common Shares Outstanding | $ | 26.27 | $ | 26.62 | $ | 24.52 | ||||||
| Tangible Book Value Per Share of Common Shares Outstanding | 22.49 | 22.83 | 20.74 | |||||||||
| 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 | |||||||||
| Capital Ratios for the Bank | ||||||||||||
| Tier 1 Core Capital to Average Assets | 9.21 | % | 8.30 | % | 8.16 | % | ||||||
| Common Equity Risk-Based Capital | 14.75 | 14.40 | 13.59 | |||||||||
| Tier 1 Risk-Based Capital | 14.75 | 14.40 | 13.59 | |||||||||
| Total Risk-Based Capital | 16.00 | 15.65 | 14.84 | |||||||||
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 17 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.
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