BERLIN, N.H., April 26 /PRNewswire-FirstCall/ -- Northway
Financial, Inc. (the "Company") (NASDAQ:NWFI) reported net income
for the quarter ended March 31, 2006 of $1,080,000, or $0.72 per
share-basic, compared to $823,000, or $0.55 per share-basic, for
the same quarter in 2005, an increase of $257,000. Commenting on
the first quarter results, William J. Woodward, President and Chief
Executive Officer of the Company stated: "We are pleased to report
that the financial results for the first quarter reflect the
several significant steps we took in the last half of 2005 to
position the Company for improved earnings, including the
consolidation of our two operating subsidiaries into Northway Bank;
the closure of two supermarket branches; and the sale of the former
Pemigewasset National Bank headquarters in Plymouth, New
Hampshire." Mr. Woodward further commented: "I'd also like to
report that on April 7, 2006, we acquired from Washington Mutual
Bank the former Providian National Bank branches located in Tilton
and Belmont, New Hampshire. We welcome the customers of these
branches to the Northway family, and are confident that they will
value the wide range of products and services offered by Northway
Bank." On April 25, 2006, the Board of Directors declared a
dividend of $0.20 per share, payable on May 15, 2006 to
shareholders of record on May 5, 2006. This dividend represents an
11% increase from the previous $0.18 per share. Net interest and
dividend income for the first quarter of 2006 was $5,642,000
compared to $5,937,000 for the first quarter of 2005, a decrease of
$295,000. The provision for loan losses for the first quarter of
2006 increased $30,000 to $105,000, compared to $75,000 for the
first quarter of the previous year. Net securities gains for the
quarter increased $139,000 to $210,000 compared to $71,000 for the
same period last year. Other noninterest income for the quarter
increased $446,000 to $1,362,000 compared to $916,000 for the same
period last year. Other operating expense was $5,699,000 for the
quarter compared to $5,612,000 for the same period last year, an
increase of $87,000. At March 31, 2006, the Company had total
assets of $617,262,000 compared to $615,922,000 at March 31, 2005,
an increase of $1,340,000. Loans, including loans held-for-sale, at
March 31, 2006 decreased $4,786,000 to $455,573,000 compared to
$460,359,000 at March 31, 2005. Investments increased $9,871,000 to
$115,978,000 compared to $106,107,000 at March 31, 2005. Total
deposits were $453,021,000 at March 31, 2006 compared to
$444,848,000 at March 31, 2005, an increase of $8,173,000. Total
borrowings decreased $7,272,000 to $110,342,000 at March 31, 2006
compared to $117,614,000 at March 31, 2005. Total equity increased
$1,595,000 to $50,850,000 at March 31, 2006 compared to $49,255,000
at March 31, 2005. 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 full-service banking offices. Certain
statements in this press release are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements can be identified by the
use of the words "expect," "believe," "estimate," "will" and other
expressions which predict or indicate future trends and which do
not relate to historical matters. Forward-looking statements may
include, but are not limited to, expectations for impact of new
products on noninterest income and expense, projections of revenue,
income or loss, and plans related to products or services of the
Company and its subsidiary. Such forward-looking statements are
subject to known and unknown risks, uncertainties and
contingencies, many of which are beyond the control of the Company.
The Company's actual results could differ materially from those
projected in the forward-looking statements as the result of, among
other factors, changes in interest rates, changes in the securities
or financial markets, a deterioration in general economic
conditions on a national basis or in the local markets in which the
Company operates, including changes in local business conditions
resulting in rising unemployment and other circumstances which
adversely affect borrowers' ability to service and repay our loans,
changes in loan defaults and charge-off rates, reduction in deposit
levels necessitating increased borrowing to fund loans and
investments, the passing of adverse government regulation, and
changes in assumptions used in making such forward-looking
statements. These forward- looking statements were based on
information, plans and estimates at the date of this press release,
and the Company does not promise to update any forward- looking
statements to reflect changes in underlying assumptions or factors,
new information, future events or other changes. Contact: Richard
P. Orsillo Senior Vice President and Chief Financial Officer
603-752-1171 Northway Financial, Inc. Selected Consolidated
Financial Data (Unaudited) (In thousands, except for ratios and per
share amounts) Period end balance sheet data: March 31, 2006 2005
Total assets $617,262 $615,922 Loans, net (1) 455,573 460,359
Investments (2) 115,978 106,107 Deposits 453,021 444,848 Borrowings
110,342 117,614 Stockholders' equity 50,850 49,255 Book value per
share $34.10 $32.67 Tangible book value per share (3) 25.97 23.96
Leverage ratio 9.30% 8.72% Shares outstanding 1,491,174 1,507,574
For the Three Months Ended March 31, Operating results: 2006 2005
Net interest and dividend income $5,642 $5,937 Securities gains,
net 210 71 Other noninterest income 1,362 916 Loan loss provision
105 75 Other operating expense 5,699 5,612 Income before tax 1,410
1,237 Income tax expense 330 414 Net income $1,080 $823 Earnings
per share-basic $0.72 $0.55 Return on average assets 0.70% 0.53%
Return on average equity 8.58% 6.66% (1) Net of unearned income and
the allowance for loan losses. Includes loans held-for-sale. (2)
Includes Federal Home Loan Bank stock, Federal Reserve Bank stock
and investment securities available-for-sale. (3) Includes a
deduction of $12,120 and $13,137 for goodwill, core deposit
intangible and mortgage servicing assets for 2006 and 2005,
respectively. DATASOURCE: Northway Financial, Inc. CONTACT: Richard
P. Orsillo, Senior Vice President and Chief Financial Officer of
Northway Financial, +1-603-752-1171
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