Northway Financial, Inc. Announces Third Quarter Earnings
NORTH CONWAY, N.H., Nov. 01, 2024 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the "Company") (OTCQB:NWYF), the parent company of Northway Bank (the "Bank"), today reported net income for the quarter ended September 30, 2024 of $1.2 million, or $0.45 per basic common share, compared to $1.6 million, or $0.58 per basic common share for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, the Company reported net income of $3.6 million, or $1.31 per basic common share, compared to $4.7 million, or $1.71 per basic common share for the same period in 2023.
President and CEO William J. Woodward commented: "During the third quarter we continued to reduce our reliance on wholesale funding by putting a focus on retaining deposits and limiting our lending. Wholesale funding decreased by $122 million, significantly reducing our reliance on wholesale funding. The third quarter was marked by the announcement of our pending merger with Camden National Corporation. The closing date of the merger is still to be determined but we anticipate the merger to be completed in the first quarter of 2025. We will be holding a special shareholder meeting to approve the merger agreement. The details of the merger and the shareholder meeting will be sent to all shareholders in the coming weeks. Please look out for the information and return your proxy card as soon as possible. The Board of Directors have unanimously approved the merger, and your support, as always, is greatly appreciated."
Financial Highlights
Total Assets were $1.2 billion, Loans, Net, were $900 million, and Total Deposits were $1 billion at September 30, 2024.
Total Assets decreased $137 million, or 10%, compared to September 30, 2023, driven by decreases in Loans, Net of $55 million, Cash and Due from Banks and Interest-Bearing Deposits of $51 million and Securities Available-for-Sale at Fair Value of $20 million.
The decrease in Loans, Net was led by a decrease in Commercial Real Estate loans of $25 million, Residential Real Estate loans of $22 million, and Consumer Loans of $6 million, compared to September 30, 2023.
Non-Municipal Deposits (excluding brokered deposits) increased $18 million compared to September 30, 2023 led by an increase in Retail Deposits of $21 million or 4%.
The increase in Retail Deposits was led by an increase in Time Deposits of $69 million offset by a decrease in Non-Maturity Deposits of $48 million.
Non-Municipal Deposits (excluding brokered deposits) increased $18 million, or 6%, compared to December 31, 2023.
Wholesale Funding, which includes brokered deposits and borrowings, decreased $122 million, or 49%, compared to September 30, 2023, and $82 million, or 39%, compared to December 31, 2023.
Total Equity increased $21 million, or 37%, compared to September 30, 2023, primarily from an increase in the market value of Securities Available-for-Sale at Fair Value.
Net Income for the nine-month period ending September 30, 2024, was $3.6 million, or $1.31, per basic common share.
Year-to-date Net Interest Income was $2.9 million lower than the same period last year driven by an increase in interest expense of $2.2 million.
The year-to-date Net Interest Margin decreased from 2.67% to 2.59% as funding costs increased .44% while the yield on earning assets increased 0.25%, compared to year-to-date September 30, 2023.
Nonperforming loans as a percentage of total loans stood at 0.41% compared to 0.31% at September 30, 2023.
Total delinquent loans as a percentage of total loans were 0.06% compared to 0.02% at September 30, 2023.
The Bank's regulatory capital ratios at September 30, 2024 exceeded all well-capitalized ratios as defined under FDIC's prompt corrective action rules.
The market price of our common stock, as of October 31, 2024, was $32.35.
Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
Nine Months Ended
9/30/2024
9/30/2023
9/30/2024
9/30/2023
Interest and Dividend Income
$
12,772
$
13,372
$
37,576
$
38,260
Interest Expense
5,046
4,572
14,223
12,002
Net Interest and Dividend Income
7,726
8,800
23,353
26,258
Provision for Credit Losses
-
-
-
-
All Other Noninterest Income
1,445
1,036
3,819
3,535
Noninterest Expense
8,041
7,720
23,837
24,030
Net Income Before Gain (Loss) on Securities
1,130
2,116
3,335
5,763
Gain (Loss) on Securities Available-for-Sale, Net
-
-
