|By Marketwired .||
|April 25, 2014 09:14 AM EDT||
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."
- 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%.
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.
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
Russell A. Cronin, Jr.
Senior Vice President
and Chief Financial Officer
Leading cloud-centric IT organizations are establishing core capabilities to improve productivity, control costs and provide a highly responsive end-user experience. Key steps along this journey include creating an end-user cloud services catalog, automating workflows and provisioning, and implementing IT showback and chargeback. In his session at 19th Cloud Expo, Mark Jamensky, executive vice president of Products at Embotics, will walk attendees through an in-depth case study of enterprise I...
Sep. 29, 2016 06:15 AM EDT Reads: 1,455
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Sep. 29, 2016 06:00 AM EDT Reads: 2,749
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
Sep. 29, 2016 06:00 AM EDT Reads: 2,665
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Sep. 29, 2016 06:00 AM EDT Reads: 516
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Sep. 29, 2016 05:45 AM EDT Reads: 1,046
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Sep. 29, 2016 05:45 AM EDT Reads: 1,500
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Sep. 29, 2016 05:30 AM EDT Reads: 2,948
Apache Hadoop is a key technology for gaining business insights from your Big Data, but the penetration into enterprises is shockingly low. In fact, Apache Hadoop and Big Data proponents recognize that this technology has not yet achieved its game-changing business potential. In his session at 19th Cloud Expo, John Mertic, director of program management for ODPi at The Linux Foundation, will explain why this is, how we can work together as an open data community to increase adoption, and the i...
Sep. 29, 2016 05:30 AM EDT Reads: 1,144
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
Sep. 29, 2016 05:15 AM EDT Reads: 1,242
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Sep. 29, 2016 05:00 AM EDT Reads: 1,635
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Sep. 29, 2016 04:45 AM EDT Reads: 1,797
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Sep. 29, 2016 04:30 AM EDT Reads: 4,679
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Sep. 29, 2016 04:00 AM EDT Reads: 1,814
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Sep. 29, 2016 04:00 AM EDT Reads: 1,211
We’ve been doing it for years, decades for some. How many websites have you created accounts on? Your bank, your credit card companies, social media sites, hotels and travel sites, online shopping sites, and that’s just the start. We do it often without even thinking about it, quickly entering our personal information, our data, in a plethora of systems. Sometimes we’re not even aware of the information we are providing. It could be very personal information (think of the security questions you ...
Sep. 29, 2016 03:45 AM EDT Reads: 4,823