Northway Financial (NASDAQ:NWFI)
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BERLIN, N.H., July 26 /PRNewswire-FirstCall/ -- Northway Financial, Inc. (the "Company") (NASDAQ:NWFI) reported net income for the quarter ended June 30, 2006 of $756,000, or $0.51 per share-basic, compared to $904,000, or $0.60 per share-basic, for the same quarter in 2005, a decrease of $148,000, or 16.4%. Net income for the six months ended June 30, 2006 was $1,836,000, or $1.23 per share-basic, compared to $1,727,000, or $1.15 per share-basic, for the six months ended June 30, 2005, an increase of $109,000, or 6.3%.
Commenting on the second quarter, William J. Woodward, President and Chief Executive Officer of the Company, stated:
"In June we completed our third quarter as Northway Bank, and reaction from customers to this consolidation and name change leads us to believe that our new name and organization have been well received."
Mr. Woodward further commented: "In the second quarter, we took specific steps toward further improving our service to customers. On April 7, 2006, we completed the acquisition of two branches from Washington Mutual Bank, thereby expanding banking opportunities for our customers and solidifying our position in the Lakes Region. Additionally, to create a uniform Northway Bank 'look,' we are renovating and upgrading several of our branches."
On July 25, 2006, the Board of Directors declared a dividend of $0.20 cents per share, payable on August 14, 2006 to shareholders of record on August 4, 2006.
Net interest and dividend income for the second quarter of 2006 was $5,644,000 compared to $5,674,000 for the second quarter of 2005, a decrease of $30,000. The provision for loan losses for the second quarter of 2006 was $120,000 compared to no provision for the second quarter of 2005. Net securities gains for the quarter decreased $59,000 to $39,000 compared to $98,000 for the same period last year. Other noninterest income for the quarter increased $88,000 to $1,285,000 compared to $1,197,000 for the same period last year. Other operating expense was $5,921,000 for the quarter compared to $5,752,000 for the same period last year, an increase of $169,000.
Net interest and dividend income for the six months ended June 30, 2006 decreased $325,000 to $11,286,000 compared to $11,611,000 for the same period last year. The provision for loan losses for the first six months of 2006 increased $150,000 to $225,000 compared to $75,000 for the first six months of 2005. Securities gains for the first six months of 2006 increased $80,000 to $249,000 compared to $169,000 for the same period last year. Other noninterest income year-to-date increased $534,000 to $2,647,000 compared to $2,113,000 for the same period last year. Other operating expense increased $256,000 to $11,620,000 for the first six months of 2006 compared to $11,364,000 for the same period last year.
At June 30, 2006, the Company had total assets of $640,262,000 compared to $629,225,000 at June 30, 2005, an increase of $11,037,000. Loans, including loans held-for-sale, at June 30, 2006 increased $2,810,000 to $462,743,000 compared to $459,933,000 at June 30, 2005. Investments increased $15,117,000 to $122,582,000 compared to $107,465,000 at June 30, 2005. Total deposits were $473,744,000 at June 30, 2006 compared to $462,037,000 at June 30, 2005, an increase of $11,707,000. Total borrowings decreased $5,818,000 to $106,989,000 at June 30, 2006 compared to $112,807,000 at June 30, 2005. Total equity decreased $20,000 to $50,335,000 at June 30, 2006 compared to $50,355,000 at June 30, 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.
Northway Financial, Inc.
Selected Consolidated Financial Data
(Unaudited)
(In thousands, except for ratios and per share amounts)
Period end balance sheet data: June 30,
2006 2005
Total assets $640,262 $629,225
Loans, net (1) 462,743 459,933
Investments (2) 122,582 107,465
Deposits 473,744 462,037
Borrowings 106,989 112,807
Stockholders' equity 50,335 50,355
Book value per share $33.71 $33.45
Tangible book value per share (3) 24.67 24.89
Leverage ratio 9.01% 9.04%
Shares outstanding 1,493,174 1,505,574
For the Three Months For the Six Months
Ended June 30, Ended June 30,
Operating results: 2006 2005 2006 2005
Net interest and dividend
income $5,644 $5,674 $11,286 $11,611
Securities gains, net 39 98 249 169
Other noninterest income 1,285 1,197 2,647 2,113
Loan loss provision 120 - 225 75
Other operating expense 5,921 5,752 11,620 11,364
Income before tax 927 1,217 2,337 2,454
Income tax expense 171 313 501 727
Net income $ 756 $ 904 $ 1,836 $ 1,727
Earnings per share $ 0.51 $ 0.60 $ 1.23 $ 1.15
Return on average assets 0.48% 0.59% 0.59% 0.56%
Return on average equity 5.96% 7.24% 7.27% 6.95%
(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 $13,309 and $12,651 for goodwill, core deposit
intangible and mortgage servicing assets for 2006 and 2005,
respectively.
Contact: Richard P. Orsillo
Senior Vice President
and Chief Financial Officer
603-752-1171
DATASOURCE: Northway Financial, Inc.
CONTACT: Richard P. Orsillo of Northway Financial, Inc., +1-603-752-1171