Northway Financial (NASDAQ:NWFI)
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Northway Financial, Inc. Announces First Quarter Results and
Declares Quarterly Dividend
BERLIN, N.H., April 26 /PRNewswire-FirstCall/ -- Northway Financial, Inc. (the
"Company") (NASDAQ:NWFI) reported net income for the quarter ended March 31,
2005 of $823,000, or $0.55 per share, compared to $729,000, or $0.49 per share,
for the same quarter in 2004, an increase of $94,000.
Commenting on the first quarter results, William J. Woodward, President and
Chief Executive Officer of the Company stated:
"We are pleased with the 13% increase in net income in the first quarter of
2005 over the same period last year. Contributing to this improvement was an
increase in both our yield on earning assets and the level of earning assets
which resulted in a 7% increase in net interest and dividend income. Partially
offsetting this increase was the recording of approximately $150,000 in
one-time expenses associated with moving Data Processing and Proof Operations
from West Plymouth to Berlin. With this consolidation we now have a single
Operations Center supporting all of Northway's 22 offices in New Hampshire."
The Company declared a quarterly dividend on April 26, 2005 of $0.18 per share
payable May 11, 2005 to shareholders of record on May 6, 2005. This dividend
represents an increase in the dividend of $0.01 per share, or 5.9%. This
recommendation to increase the dividend per share is based upon the positive
trends in core earnings.
Net interest and dividend income for the first quarter of 2005 was $5,937,000
compared to $5,544,000 for the first quarter of 2004, an increase of $393,000.
The provision for loan losses for the first quarter of 2005 decreased $75,000
to $75,000, compared to $150,000 for the first quarter of the previous year.
Net securities gains for the quarter decreased $388,000 to $71,000 compared to
$459,000 for the same period last year. Other noninterest income for the
quarter increased $79,000 to $916,000 compared to $837,000 for the same period
last year. Other operating expense was $5,612,000 for the quarter compared to
$5,608,000 for the same period last year, an increase of $4,000.
At March 31, 2005, the Company had total assets of $615,922,000 compared to
$627,336,000 at March 31, 2004, a decrease of $11,414,000. Loans, including
loans held-for-sale, at March 31, 2005 decreased $14,773,000 to $460,359,000
compared to March 31, 2004. Investments, including federal funds sold,
increased $2,303,000 to $106,107,000. Total deposits were $444,848,000 at March
31, 2005, a decrease of $5,520,000 compared to March 31, 2004. Total
borrowings increased $2,793,000 to $117,614,000. Total equity increased
$895,000 to $49,255,000.
The Company, headquartered in Berlin, New Hampshire, is a multi-bank holding
company. Through its subsidiary banks, The Berlin City Bank and The
Pemigewasset National Bank of Plymouth, New Hampshire, 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 on net income of withdrawing from the indirect automobile lending
line of business, expectation 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 subsidiaries. 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.
Northway Financial, Inc.
Selected Consolidated Financial Data
(Unaudited)
(In thousands, except for ratios and per share amounts)
Period end balance sheet data: March 31,
2005 2004
Total assets $615,922 $627,336
Loans, net (1) 460,359 475,132
Investments (2) 106,107 103,804
Deposits 444,848 450,368
Borrowings 117,614 114,821
Stockholders' equity 49,255 48,360
Book value per share $32.67 $32.25
Tangible book value per share (3) 23.96 22.80
Leverage ratio 8.73 % 8.41 %
Shares outstanding 1,507,574 1,499,574
For the Three Months
Ended March 31,
Operating results: 2005 2004
Net interest income $5,937 $5,544
Securities gains, net 71 459
Other noninterest income 916 837
Loan loss provision 75 150
Other operating expense 5,612 5,608
Income before tax 1,237 1,082
Income tax expense 414 353
Net income $823 $729
Earnings per share $0.55 $0.49
Return on average assets 0.53 % 0.49 %
Return on average equity 6.66 % 6.05 %
(1) Net of unearned income and the allowance for loan losses. Includes
loans held-for-sale.
(2) Includes federal funds sold, Federal Home Loan Bank stock, Federal
Reserve Bank stock and investment securities available-for-sale.
(3) Includes a deduction of $13,137 and $14,174 for goodwill, core deposit
intangible and mortgage servicing assets for 2005 and 2004,
respectively.
DATASOURCE: Northway Financial, Inc.
CONTACT: Richard P. Orsillo, Senior Vice President and Chief Financial
Officer of Northway Financial, Inc., +1-603-752-1171