Northway Financial, Inc. Announces Third Quarter Earnings

Rhea-AI Summary

Northway Financial, Inc. (OTCQB: NWYF) reported a net income of $1.6 million for Q3 2021, equating to earnings per share of $0.58. For the nine months ending September 30, 2021, net income reached $5.7 million. The company saw a 12% increase in loan balances and a 16% rise in non-maturity deposits, achieving $1 billion in total deposits for the first time. Total assets reached $1.2 billion. Nonperforming loans decreased to 0.27%. The market price of common stock was $32.15 as of October 28, 2021.

Positive

• Net income for Q3 2021: $1.6 million; EPS: $0.58
• Total deposits increased by 14% YoY, reaching $1 billion
• Loan portfolio grew by 11% YoY, with a notable 56% rise in municipal loans
• Nonperforming loans dropped to 0.27% from 0.41% YoY
• Achieved $5.7 million in net income for the first nine months

Negative

• Q3 2021 noninterest expense remained high at $7.2 million
• Total interest income decreased from $8.8 million in Q3 2020 to $8.7 million in Q3 2021
• Yield on earning assets declined to 2.98% from 3.39% YoY

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.

Contact:

Gary Laurash
Chief Financial Officer
603-326-7377

FAQ

What were Northway Financial's earnings for Q3 2021?

Northway Financial reported net income of $1.6 million for Q3 2021, with an earnings per share of $0.58.

How much did Northway Financial's total deposits increase by?

Total deposits increased by 14% compared to September 30, 2020, reaching $1 billion.

What was the market price of Northway Financial's stock on October 28, 2021?

The market price of Northway Financial's common stock was $32.15 as of October 28, 2021.

What is the status of Northway Financial's loan portfolio?

The loan portfolio increased by 11% year-over-year, with a significant rise in municipal loans by 56%.

What is the nonperforming loans percentage for Northway Financial?

Nonperforming loans as a percentage of total loans stood at 0.27% as of September 30, 2021.