Welcome!

News Feed Item

Northway Financial, Inc. Announces First Quarter Earnings

NORTH CONWAY, NH -- (Marketwired) -- 04/25/14 -- Northway Financial, Inc. (the "Company") (OTCQB: NWYF), the parent company of Northway Bank, today reported net income for the quarter ended March 31, 2014 of $1,307,000, or $0.45 per basic common share, compared to net income of $2,028,000, or $0.74 per basic common share, for the quarter ended March 31, 2013, a decrease of $721,000. The result of the first quarter of 2013 included securities gains of $1,616,000, compared to $428,000 for the first quarter of 2014.

CEO William J. Woodward said, "We continue to execute our strategic objective of improving core earnings, which have increased over last year. Loans and deposits have each increased $53 million compared to the prior year and have resulted in an increase in net interest income of $611,000. I am also pleased with the execution of our strategy to improve asset quality, which has allowed us to reduce our provision for possible loan losses by $515,000 compared to the previous year.

We continue to experience strong traction as we move into Southern New Hampshire and are particularly pleased with the deposit growth at our two newest branches located in Manchester and Portsmouth."

Financial Highlights

  • Net loans increased $53,331,000, or 9.3%, to $625,015,000 at March 31, 2014, compared to $571,684,000 at March 31, 2013. Commercial loans increased $44,956,000 and comprise 62.1% of gross loans. This growth is reflective of our efforts to increase small business lending throughout the state.

  • Total deposits increased $52,873,000, or 8.0%, to $709,842,000 at March 31, 2014, compared to $656,969,000 at March 31, 2013. For the quarter ended March 31, 2014, total deposits increased $15,483,000, which is an annualized growth rate of 8.9%.

  • The Company's returns on average assets and average equity for the quarter ended March 31, 2014 were 0.58% and 6.31%, respectively, compared to 0.96% and 10.06% for the same period last year.

  • Core earnings comprise 71.8% of net income for the quarter ended March 31, 2014, compared to 43.4% for the same period last year. Core earnings exclude non-recurring items such as gains on sales of investment securities and represent earnings generated from our principal banking activities. Interest income has increased $678,000 over last year due primarily to the increase in the loan portfolio. Further, the provision for loan losses has decreased $515,000 as many of our problem credits have been resolved. Overall, net income has decreased due primarily to a decrease in gains on sales of investments and loans of $1,188,000 and $477,000, respectively.

  • Regulatory capital ratios at March 31, 2014 exceeded minimum requirements. The Company's total risk-based capital ratio was 17.24% compared to the regulatory requirement of 10.0%; Tier 1 risk-based capital was 15.91% compared to the regulatory requirement of 6.0% and Tier 1 capital to average assets was 10.75% compared to the regulatory requirement of 5.0%.

Earnings Summary

As noted above, the Company recorded net income of $1,307,000 for the quarter ended March 31, 2014 compared to $2,028,000 for the same period in 2013. For the quarter ended March 31, 2014, $1,240,000, or $0.45 per common share, was available to common stockholders compared to $1,948,000, or $0.74 per common share, for the same period last year.

Net interest and dividend income for the quarter ended March 31, 2014 increased $611,000 to $7,148,000 compared to $6,537,000 for the same period last year. The provision for loan losses for the quarter ended March 31, 2014 decreased $515,000 to $405,000 compared to $920,000 for the same period in 2013. Net gains on sales of securities were $428,000 compared to $1,616,000 for the quarter ended March 31, 2013, a decrease of $1,188,000. Gains on sales of loans decreased $477,000 to $165,000 for the quarter ended March 31, 2014, compared to $642,000 for the same period last year. 2013 gains were positively impacted by the high level of refinance activity that occurred given the then record low level of long-term interest rates. All other noninterest income decreased $7,000 to $1,330,000 compared to $1,337,000 for the same period last year. Total noninterest expense increased $585,000 to $7,025,000 for the quarter ended March 31, 2014, compared to $6,440,000 for the same period last year. The increase was due primarily to higher salaries expense, pension, and consulting expense. Income tax expense decreased $410,000 to $334,000 for the quarter ended March 31, 2014, compared to $744,000 for the same period last year; the effective tax rates were 20.4% and 26.8%, respectively.

Balance Sheet Summary

At March 31, 2014, the Company had total assets of $920,287,000 compared to $849,928,000 at March 31, 2013, an increase of $70,359,000, or 8.3%. Net loans at March 31, 2014, increased $53,331,000, or 9.3%, to $625,015,000 compared to $571,684,000 at March 31, 2013. Securities available-for-sale increased $20,567,000 to $228,086,000 at March 31, 2014, compared to $207,519,000 at March 31, 2013.

Total deposits were $709,842,000 at March 31, 2014, compared to $656,969,000 at March 31, 2013, an increase of $52,873,000, or 8.0%. Securities sold under agreements to repurchase increased $6,600,000 to $23,308,000 at March 31, 2014, compared to $16,708,000 at March 31, 2013. Other borrowings increased $7,464,000 to $95,155,000 at March 31, 2014, compared to $87,691,000 at March 31, 2013.

Total stockholders' equity increased $3,067,000 to $84,435,000 at March 31, 2014, compared to $81,368,000 at March 31, 2013. Stockholders' equity available to common stockholders totaled $60,903,000, resulting in a book value per common share of $22.13 per share at March 31, 2014, based on 2,751,650 shares of common stock outstanding, an increase of $0.05 per share, from March 31, 2013. Tangible book value per common share increased $0.25, or 1.4%, to $17.89 at March 31, 2014, compared to $17.64 at March 31, 2013.

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 18 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.
                        Selected Financial Highlights
                                 (Unaudited)

(Dollars in thousands, except per share data)           Three Months Ended
                                                     -----------------------
                                                      3/31/2014   3/31/2013
                                                     ----------- -----------

Interest and Dividend Income                         $     8,486 $     7,808
Interest Expense                                           1,338       1,271
                                                     ----------- -----------
Net Interest and Dividend Income                           7,148       6,537
Provision for Loan Losses                                    405         920
Gains on Sales of Loans, Net                                 165         642
All Other Noninterest Income                               1,330       1,337
Noninterest Expense                                        7,025       6,440
                                                     ----------- -----------
Net Income Before Securities Gains                         1,213       1,156
Securities Gains, Net                                        428       1,616
                                                     ----------- -----------
Net Income Before Taxes                                    1,641       2,772
Provision for Income Tax                                     334         744
                                                     ----------- -----------
Net Income                                           $     1,307 $     2,028
                                                     =========== ===========
Net Income Available to Common Stockholders          $     1,240 $     1,948
                                                     =========== ===========
Earnings per Common Share, Basic                     $      0.45 $      0.74



                                                      3/31/2014   3/31/2013
                                                     ----------  ----------

Balance Sheet
Total Assets                                         $  920,287  $  849,928
Cash and Due from Banks and Interest-Bearing
 Deposits                                                20,659      18,933
Securities Available-for-Sale, at Fair Value            228,086     207,519
Loans, Net                                              625,015     571,684
Total Deposits                                          709,842     656,969
Federal Home Loan Bank Advances                          74,535      67,071
Securities Sold Under Agreements to Repurchase           23,308      16,708
Junior Subordinated Debentures                           20,620      20,620
Stockholders' Equity                                     84,435      81,368
Profitability and Efficiency
Net Interest Margin                                        3.51%       3.43%
Yield on Earning Assets                                    4.13        4.06
Cost of Interest Bearing Liabilities                       0.74        0.75
Book Value Per Share of Common Shares Outstanding    $    22.13  $    22.08
Tangible Book Value Per Share of Common Shares
 Outstanding                                              17.89       17.64
Capital and Credit
Tier 1 Core Capital to Average Assets                     10.75%      10.89%
Tier 1 Risk-Based Capital                                 15.91       16.71
Total Risk-Based Capital                                  17.24       18.05
Common Shares Outstanding                             2,751,650   2,620,755
Weighted Average Number of Common Shares, Basic       2,751,650   2,620,755
Return on Average Assets                                   0.58%       0.96%
Return on Average Equity                                   6.31       10.06
Nonperforming Loans as a % of Total Loans                  2.37        2.64
Allowance for Loan Losses as a % of Nonperforming
 Loans                                                    75.91       66.34

Contact:
Russell A. Cronin, Jr.
Senior Vice President
and Chief Financial Officer
603-326-7398

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
SYS-CON Events announced today that Catchpoint, a leading digital experience intelligence company, has been named “Silver Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Catchpoint Systems is a leading Digital Performance Analytics company that provides unparalleled insight into your customer-critical services to help you consistently deliver an amazing customer experience. Designed for digital business, C...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed ...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
"We provide DevOps solutions. We also partner with some key players in the DevOps space and we use the technology that we partner with to engineer custom solutions for different organizations," stated Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.