Northway Financial, Inc. (the "Company") (OTCBB: NWYF) reported net
income for the year ended December 31, 2010 of $4,713,000 compared
to net income of $2,033,000 for the year ended December 31, 2009,
an increase of $2,680,000. Net income available to common
stockholders was $4,068,000, or $1.55 per common share, for the
year ended December 31, 2010, compared to $1,441,000, or $0.56 per
common share, for the year ended December 31, 2009, an increase of
$2,627,000. For the quarter ended December 31, 2010, the Company
reported net income of $1,638,000 compared to net income of
$584,000 for the same quarter in 2009, an increase of $1,054,000.
Net income available to common stockholders increased $1,053,000
from $423,000, or $0.28 per common share, for the quarter ended
December 31, 2009 to $1,476,000, or $0.56 per common share, for the
quarter ended December 31, 2010. The Company's returns on average
assets and average equity for the year ended December 31, 2010 were
0.58% and 8.65%, respectively.
CEO William Woodward stated, "I am particularly pleased with our
results for 2010. Not only did we have three consecutive quarters
of record earnings, but we also had a record year. Achieving these
financial results in a very challenging economy is a tribute to our
staff, which was very focused on controlling overhead and improving
asset quality and earnings."
Net interest and dividend income for the year ended December 31,
2010 increased $2,645,000 to $24,356,000 compared to $21,711,000
for the same period last year due primarily to an improvement in
the net interest margin of 18 basis points. This improvement, from
3.27% to 3.45%, was due primarily to a 71 basis point decrease in
the cost of interest-bearing liabilities. The provision for loan
losses for the year ended December 31, 2010 increased $1,225,000 to
$3,335,000 compared to $2,110,000 for the same period in 2009.
Noninterest income increased $2,028,000 due primarily to an
increase in gain on sale of loans of $1,759,000, primarily
reflecting the sale of $29.6 million of portfolio fixed-rate
residential mortgage loans. Noninterest expense decreased $730,000
to $24,145,000 for the year ended December 31, 2010 compared to
$24,875,000 for the same period last year. The provision for income
tax for the year ended December 31, 2010 increased $1,498,000 from
the same period in 2009 due primarily to the increase in net income
before taxes of $4,178,000.
Net interest and dividend income for the quarter ended December
31, 2010 increased $191,000 to $6,011,000 compared to $5,820,000
for the same period last year. The provision for loan losses for
the quarter ended December 31, 2010 decreased $70,000 to $690,000
compared to $760,000 for the same period in 2009. Noninterest
income increased $1,023,000 due primarily to an increase in gain on
sale of loans of $989,000 resulting primarily from the sale of
$10.8 million of portfolio fixed-rate residential mortgage loans.
Noninterest expense decreased $270,000 to $6,140,000 for the
quarter ended December 31, 2010 compared to $6,410,000 for the same
period last year. The provision for income tax for the quarter
ended December 31, 2010 increased $500,000 from the quarter ended
December 31, 2009.
At December 31, 2010, the Company had total assets of
$831,973,000 compared to $807,357,000 at December 31, 2009, an
increase of $24,616,000. Cash and due from banks and
interest-bearing deposits increased $49,844,000 to $106,232,000 at
December 31, 2010 compared to $56,388,000 at December 31, 2009.
Securities available-for-sale increased $38,463,000 to $158,715,000
at December 31, 2010 compared to $120,252,000 at December 31, 2009.
Loans at December 31, 2010 decreased $66,159,000 to $512,683,000
compared to $578,842,000 at December 31, 2009. This decrease was
primarily the result of the sale of $29.6 million in fixed-rate
portfolio mortgages 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 $645,820,000 at December 31, 2010
compared to $628,991,000 at December 31, 2009, an increase of
$16,829,000. Securities sold under agreements to repurchase
increased $4,541,000 to $39,812,000 at December 31, 2010 compared
to $35,271,000 at December 31, 2009.
Total equity increased $4,434,000 to $55,997,000 at December 31,
2010 compared to $51,563,000 at December 31, 2009 due to net income
of $4,713,000 and a decrease in the unrealized loss on
available-for-sale securities of $905,000 partially offset by
dividends paid in the amount of $1,174,000. Considering the rights
of preferred stockholders, stockholders' equity available to common
stockholders at December 31, 2010 was $45,439,000. The book value
of stockholders' equity available to common stockholders at
December 31, 2010 was $17.34 per share, an increase of $1.70 per
common share from December 31, 2009.
On February 9, 2011, the Board of Directors declared a common
stock dividend of $0.12 per share. This dividend is payable on
February 22, 2011 to common stockholders of record on February 14,
2011. On February 9, 2011, the Board of Directors also 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
February 15, 2011, and are required as part of the U.S. Department
of Treasury's investment in 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 full-service banking offices.
Northway Financial, Inc.
Selected Financial Highlights
(Dollars in thousands,
except per share data) Three Months Ended Year Ended
---------------------- ----------------------
12/31/2010 12/31/2009 12/31/2010 12/31/2009
---------- ---------- ---------- ----------
Interest and Dividend
Income $ 8,276 $ 8,885 $ 34,345 $ 35,669
Interest Expense 2,265 3,065 9,989 13,958
Net Interest and Dividend
Income 6,011 5,820 24,356 21,711
Provision for Loan Losses 690 760 3,335 2,110
Noninterest Income 2,846 1,823 8,263 6,235
Noninterest Expense 6,140 6,410 24,145 24,875
Provision for Income Tax 389 (111) 426 (1,072)
Net Income 1,638 584 4,713 2,033
Net Income Available to
Common Stockholders 1,476 423 4,068 1,441
Earnings Per Common Share,
Basic 0.56 0.28 1.55 0.56
Earnings Per Common Share,
Assuming Dilution (1) 0.56 0.28 1.55 0.56
Dividends Declared per
Common Share 0.12 0.12 0.24 0.24
(1) Diluted earnings per share are caclulated using the weighted average
number of shares outstanding for the period, including common stock
equivalents, as appropriate.
12/31/2010 12/31/2009
---------- ----------
Total Assets $ 831,973 $ 807,357
Loans, net 512,683 578,842
Securities available-for-sale, at fair value 158,715 120,252
Federal Funds Sold 95,672 45,501
Total Deposits 645,820 628,991
Federal Home Loan Bank Advances 62,962 63,000
Securities Sold Under Agreements to Repurchase 39,812 35,271
Junior Subordinated Debentures 20,620 20,620
Stockholders' Equity 55,997 51,563
Book Value of Common Shares Outstanding 17.34 15.64
Tangible Book Value of Common Shares
Outstanding 12.72 11.14
Tier 1 Core Capital to Assets 8.15 % 7.82 %
Common Shares Outstanding 2,620,755 2,620,755
Return on Average Assets 0.58 % 0.27 %
Return on Average Equity 8.65 4.05
Nonperforming Loans as a % of Total Loans 3.18 2.03
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.
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