Northway Financial, Inc. (the "Company") (OTCBB: NWYF) reported net
income for the first quarter ended March 31, 2011 of $1,005,000
compared to net income of $276,000 for the quarter ended March 31,
2010, an increase of $729,000.
Financial Highlights
-- Net income available to common stockholders was $844,000, or $0.32 per
common share, for the quarter ended March 31, 2011, compared to
$115,000, or $0.04 per common share, for the quarter ended
March 31, 2010, an increase of $729,000.
-- The Company's returns on average assets and average equity for the
quarter March 31, 2011 were 0.48% and 7.19%, respectively, compared to
0.14% and 2.13% for the same period last year.
-- Total assets increased $49,014,000, or 6.3%, to $831,026,000 at
March 31, 2011 from $782,012,000 at March 31, 2010.
-- As a result of our strategy to reduce our exposure to long-term
fixed-rate loans secured by real estate, net loan balances decreased
$76,114,000, or 13.2%, to $499,633,000 at March 31, 2011 from
$575,747,000 at March 31, 2010.
-- The cash flow generated from the implementation of the strategy
described above was invested in securities available-for-sale which
increased $94,255,000, or 70.4%, to $228,095,000 at March 31, 2011 from
$133,840,000 at March 31, 2010.
-- Borrowings increased $22,967,000, or 27.5%, to $106,587,000 at
March 31, 2011 from $83,620,000 at March 31, 2010 due to an increase in
FHLB advances in order to fund a leverage strategy.
-- Deposits increased $15,296,000, or 2.5%, to $632,363,000 at March 31,
2011 from $617,067,000 at March 31, 2010.
Earnings Summary
Net interest and dividend income for the quarter ended March 31,
2011 decreased $34,000 to $5,780,000 compared to $5,814,000 for the
same period last year. The provision for loan losses for the
quarter ended March 31, 2011 decreased $250,000 to $615,000
compared to $865,000 for the same period in 2010. Noninterest
income increased $1,281,000 to $2,047,000 for the quarter ended
March 31, 2011 compared to $766,000 for the same period a year ago.
During the first quarter of 2010, the Company recorded a write-down
on securities available-for-sale of $1,128,000. In addition, net
gains on sales of loans increased $195,000 from the prior year.
Total noninterest expense increased $323,000 to $6,226,000 for the
quarter ended March 31, 2011 compared to $5,903,000 for the same
period last year. Income tax expense for the quarter ended March
31, 2011 increased $445,000 from the quarter ended March 31,
2010.
Balance Sheet Summary
At March 31, 2011, the Company had total assets of $831,026,000
compared to $782,012,000 at March 31, 2010, an increase of
$49,014,000. Cash and due from banks and interest-bearing deposits
increased $31,379,000 to $51,272,000 at March 31, 2011 compared to
$19,893,000 at March 31, 2010. Securities available-for-sale
increased $94,255,000 to $228,095,000 at March 31, 2011 compared to
$133,840,000 at March 31, 2010. The increase in securities
available-for-sale is due primarily to a $30 million leverage
strategy in January to lock in a positive income spread for two
years as well as the deployment of $35 million in excess overnight
funds during March. Loans at March 31, 2011 decreased $76,114,000
to $499,633,000 compared to $575,747,000 at March 31, 2010. This
decrease was primarily the result of the sale of $29.6 million in
fixed-rate portfolio mortgages during the second half of 2010 as
part of a strategy to reduce our exposure to long-term fixed-rate
loans that are secured by real estate. In addition, the Company's
decision to sell new originations in the secondary market has
contributed to the decline in residential real estate loans. Total
deposits were $632,363,000 at March 31, 2011 compared to
$617,067,000 at March 31, 2010, an increase of $15,296,000.
Securities sold under agreements to repurchase increased $6,907,000
to $28,088,000 at March 31, 2011 compared to $21,181,000 at March
31, 2010. Other borrowings increased $22,967,000 to $106,587,000 at
March 31, 2011 compared to $83,620,000 at March 31, 2010 due to the
previously referenced leverage strategy.
Total equity increased $4,749,000 to $57,158,000 at March 31,
2011 compared to $52,409,000 at March 31, 2010. Stockholders'
equity available to common stockholders of $46,590,000 resulted in
a book value of $17.78 per share at March 31, 2011, based on
2,620,755 shares of common stock outstanding, an increase of $1.81
per share from March 31, 2010.
Dividends
On April 27, 2011, the Board of Directors declared a 5% dividend
on the Preferred Stock Class A shares, and a 9% dividend on the
Preferred Stock Class B shares. Both of these dividends are payable
to the U.S. Department of Treasury on May 16, 2011, and are
required as part of the U.S. Department of Treasury's investment in
Northway Financial, Inc.
About Northway Financial, Inc.
Northway Financial, Inc., headquartered in Berlin, 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 20 full-service banking offices.
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
(Dollars in thousands, except per share data) Three Months Ended
----------------------
3/31/2011 3/31/2010
---------- ----------
Interest and Dividend Income $ 7,992 $ 8,525
Interest Expense 2,212 2,711
Net Interest and Dividend Income 5,780 5,814
Provision for Loan Losses 615 865
Noninterest Income 2,047 766
Noninterest Expense 6,226 5,903
Provision for Income Tax (19) (464)
Net Income 1,005 276
Net Income Available to Common Stockholders 844 115
Earnings Per Common Share, Basic 0.32 0.04
Dividends Declared per Common Share - -
3/31/2011 3/31/2010
---------- ----------
Total Assets $ 831,026 $ 782,012
Cash and due from banks and interest-bearing deposits 51,272 19,893
Securities available-for-sale, at fair value 228,095 133,840
Loans, net 499,633 575,747
Total Deposits 632,363 617,067
Federal Home Loan Bank Advances 85,967 63,000
Securities Sold Under Agreements to Repurchase 28,088 21,181
Junior Subordinated Debentures 20,620 20,620
Stockholders' Equity 57,158 52,409
Book Value of Common Shares Outstanding 17.78 15.97
Tangible Book Value of Common Shares Outstanding 13.14 11.48
Tier 1 Core Capital to Assets (1) 7.54% 7.86%
Common Shares Outstanding 2,620,755 2,620,755
Return on Average Assets 0.48% 0.14%
Return on Average Equity 7.19 2.13
Nonperforming Loans as a % of Total Loans 4.03 3.51
(1) Effective March 31, 2011 the quantitative limits applied to the amount
of qualifying trust preferred securities became subject to stricter
standards. The result was a decrease in the Tier 1 Core Capital to
Assets ratio of 32 basis points. Without the change in regulation, this
ratio would have increased 13 basis points.
Contact: Richard P. Orsillo Senior Vice President and Chief
Financial Officer 603-752-1171
Northway Financial (QB) (USOTC:NWYF)
Historical Stock Chart
From Aug 2024 to Sep 2024
Northway Financial (QB) (USOTC:NWYF)
Historical Stock Chart
From Sep 2023 to Sep 2024