NORTH CONWAY, N.H., Jan. 31, 2020 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the "Company") NWYF, the parent company of Northway Bank (the "Bank"), today reported record net income for the year ended December 31, 2019 of $9.3MM, or $3.37 per basic common share, compared to $2.9MM, or $1.07 per basic common share for the year ended December 31, 2018.
The Board of Directors has declared a semi-annual cash dividend of $0.35 per share, payable on February 18, 2020, to common stockholders of record on February 10, 2020. William J. Woodward, President and Chief Executive Officer, stated, "We are continuing our current level of dividend, as we believe our investment in growth will continue to enhance shareholder value."
Financial Highlights
- Included in our net income of $9.3MM for the year ended December 31, 2019 is $2.3MM of unrealized equity security gains, which accounting standards now require us to report in our income statement.
- Total assets were $916MM; total loans, net, were $629MM; and total deposits were $731MM at December 31, 2019.
- Loans, net, increased $1MM from December 31, 2018; $34MM of portfolio residential fixed rate loans were sold during 2019.
- In addition to the sale of $34MM of portfolio residential fixed rate loans, the Bank sold $36MM of newly originated fixed rate residential loans and recorded total gain on loan sales of $1.2MM.
- The net interest margin at December 31, 2019 was 3.45% up from 3.36% from December 31, 2018.
- The yield on earning assets was 4.05% and the cost of interest-bearing liabilities was 0.77%, for the year ended December 31, 2019.
- For the year ended December 31, 2019, return on average assets was 1.01% and return on average equity was 10.72%
- Regulatory capital ratios at December 31, 2019 were 11.43% Tier 1 Core Capital to Average Assets, 18.10% Total Risk-Based Capital, and 13.61% Common Equity Risk-Based Capital.
- Nonperforming loans as a percentage of total loans stood at .49% at December 31, 2019.
- The market price of our common stock, as of January 25, 2020, was $34.32.
| Northway Financial, Inc. | |||||||||||||
| Selected Financial Highlights | |||||||||||||
| (Unaudited) | |||||||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | Year Ended | |||||||||||
| 12/31/19 | 12/31/18 | 12/31/19 | 12/31/18 | ||||||||||
| Interest and Dividend Income | $ | 8,231 | $ | 9,259 | $ | 34,643 | $ | 34,364 | |||||
| Interest Expense | 1,084 | 1,530 | 5,269 | 4,986 | |||||||||
| Net Interest and Dividend Income | 7,147 | 7,729 | 29,374 | 29,378 | |||||||||
| Provision for Loan Losses | - | 195 | 210 | 390 | |||||||||
| All Other Noninterest Income | 1,620 | 936 | 6,652 | 4,662 | |||||||||
| Realized Gains on Securities Available-for-Sale, net | - | - | 827 | 40 | |||||||||
| Gain on Marketable Equity Securities Sold, net | 732 | 54 | 1,418 | 550 | |||||||||
| Noninterest Expense | 7,329 | 7,554 | 29,210 | 29,022 | |||||||||
| Net Income Before Gains on Marketable Equity Securities, net | 2,170 | 970 | 8,851 | 5,218 | |||||||||
| Unrealized Gain (Loss) on Marketable Equity Securities Held, net | 11 | (2,464 | ) | 2,327 | (2,498 | ) | |||||||
| Income (Loss) before Income Tax Expense | 2,181 | (1,494 | ) | 11,178 | 2,720 | ||||||||
| Income Tax Expense (Benefit) | 278 | (256 | ) | 1,894 | (218 | ) | |||||||
| Net Income (Loss) | $ | 1,903 | $ | (1,238 | ) | $ | 9,284 | $ | 2,938 | ||||
| Net Income (Loss) Available to Common Stockholders | $ | 1,903 | $ | (1,238 | ) | $ | 9,284 | $ | 2,938 | ||||
| Earnings per Common Share, Basic | $ | 0.69 | $ | (0.45 | ) | $ | 3.37 | $ | 1.07 | ||||
| 12/31/19 | 12/31/18 | |||||
| Balance Sheet | ||||||
| Total Assets | $ | 916,283 | $ | 926,898 | ||
| Cash and Due from Banks and Interest-Bearing Deposits | 78,639 | 18,132 | ||||
| Securities Available-for-Sale, at Fair Value | 160,484 | 225,409 | ||||
| Marketable Equity Securities, at Fair Value | 11,899 | 17,978 | ||||
| Loans, Net, including loans held for sale | 628,797 | 627,915 | ||||
| Total Liabilities | 824,904 | 847,480 | ||||
| Retail non-maturity deposits | 508,724 | 494,793 | ||||
| Municipal non-maturity deposits | 110,602 | 101,746 | ||||
| Certificates of deposit | 111,771 | 128,993 | ||||
| Federal Home Loan Bank Advances | - | 13,848 | ||||
| Securities Sold Under Agreements to Repurchase | 64,329 | 79,340 | ||||
| Junior Subordinated Debentures | 20,620 | 20,620 | ||||
| Stockholders' Equity | 91,379 | 79,418 | ||||
| Profitability and Efficiency | ||||||
| Net Interest Margin | 3.45 | % | 3.36 | % | ||
| Yield on Earning Assets | 4.05 | 3.91 | ||||
| Cost of Interest Bearing Liabilities | 0.77 | 0.70 | ||||
| Book Value Per Share of Common Shares Outstanding | $ | 33.21 | $ | 28.86 | ||
| Tangible Book Value Per Share of Common Shares Outstanding | 29.60 | 25.25 | ||||
| Capital and Credit | ||||||
| Tier 1 Core Capital to Average Assets | 11.43 | % | 9.93 | % | ||
| Common Equity Risk-Based Capital | 13.61 | 12.23 | ||||
| Tier 1 Risk-Based Capital | 16.89 | 15.44 | ||||
| Total Risk-Based Capital | 18.10 | 16.60 | ||||
| Common Shares Outstanding | 2,751,650 | 2,751,650 | ||||
| Weighted Average Number of Common Shares, Basic | 2,751,650 | 2,751,650 | ||||
| Nonperforming Loans as a % of Total Loans | 0.49 | 0.34 | ||||
| Allowance for Loan Losses as a % of Nonperforming Loans | 230 | 323 | ||||
Note: The 2019 Annual Report will be provided to shareholders in conjunction with the distribution of the proxy materials for the 2020 Annual Meeting.
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. These statements are based upon the current beliefs and expectations of the Company's management 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
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