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Northway Financial, Inc. Announces 2022 Earnings and Declares Semi-Annual Dividend

NORTH CONWAY, N.H., Jan. 27, 2023 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the “Company”) (OTCQB: NWYF), the parent company of Northway Bank (the “Bank”), today reported net income for the year ended December 31, 2022 of $2.7 million, or $0.97 per basic common share.

The Board of Directors declared a semi-annual cash dividend of $0.35 per common share, payable on February 13, 2023, to common stockholders of record on February 6, 2023.

President and CEO William J. Woodward commented: “The financial results for 2022 were impacted by the financial markets and our focus on preparing for the economic uncertainties of the coming years. To reduce future earnings volatility, we liquidated a portion of our equity portfolio. The impact of the liquidation and the value of the remaining equities resulted in a loss on equities of $2.7 million. We also set aside $1.8 million in the allowance for loan losses which now totals $11.4 million. Despite the economic uncertainty, we grew our loan portfolio by $131 million primarily in organically originated residential and commercial real estate loans. Our core consumer and business deposits increased by 3%. The credit quality of our loan portfolio remains very strong with all measures moving in the right direction. Despite the volatile financial conditions that effected our net income for 2022, the Board of Directors continues to support the payment of our semi-annual dividend, an indication of our belief in the Company’s ability to improve financial performance, as rates return to normalcy.”

Financial Highlights

  • Total assets were $1.3 billion, loans, net, were $918 million, and total deposits were $1.1 billion at December 31, 2022.
  • The loan portfolio increased $131 million, or 16%, compared to December 31, 2021.
  • Residential mortgage loan balances increased $96 million, or 37%, compared to December 31, 2021.
  • Commercial real estate loans increased $42 million, or 11%, compared to December 31, 2021.
  • Year-to-Date Net Interest and Dividend Income before the Provision for Loan Losses increased $4 million, or 12%, compared to December 31, 2021.
  • Due to loan growth and the uncertain economic environment, a $1.8 million Provision for Loan Losses was recognized.
  • The decline during 2022 in equity markets negatively impacted earnings by $2.7 million.
  • The rapid rise in interest rates in 2022 resulted in a 15% decline in the market value of securities classified as Available for Sale which reduced Total Capital by $37 million.
  • Nonperforming loans as a percentage of total loans stood at 0.23% compared to 0.26% at December 31, 2021.
  • The Bank’s regulatory capital ratios at December 31, 2022 exceeded all well-capitalized ratios as defined under FDIC’s prompt corrective action rules.
  • The market price of our common stock, as of January 26, 2023, was $24.00.


Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)
               
(Dollars in thousands, except per share data) Three Months Ended   Year Ended
  12/31/2022   12/31/2021 12/31/2022   12/31/2021
               
Interest and Dividend Income $ 11,579   $ 8,980   $ 39,917     $ 33,835
Interest Expense   2,237     444     4,307       2,189
Net Interest and Dividend Income   9,342     8,536     35,610       31,646
Provision for Loan Losses   750     -     1,800       -
All Other Noninterest Income   1,324     1,361     3,662       5,079
Noninterest Expense   7,837     8,106     32,020       30,100
Net Income Before Gain (Loss) on Securities   2,079     1,791     5,452       6,625
Gain (Loss) on Securities Available-for-Sale, net   -     -     -       63
Gain (Loss) on Marketable Equity Securities   2,937     2,632     (2,708 )     4,657
Income before Income Tax Expense   5,016     4,423     2,744       11,345
Income Tax Expense   1,097     836     69       2,042
Net Income $ 3,919   $ 3,587   $ 2,675     $ 9,303
Net Income Available to Common Stockholders $ 3,919   $ 3,587   $ 2,675     $ 9,303
Earnings per Common Share, Basic $ 1.42   $ 1.30   $ 0.97     $ 3.38
               

 


    12/31/2022   12/31/2021  
           
Balance Sheet          
Total Assets   $ 1,302,009   $ 1,247,516  
Cash and Due from Banks and Interest-Bearing Deposits     26,520     93,958  
Securities Available-for-Sale, at Fair Value     288,228     301,428  
Marketable Equity Securities, at Fair Value     10,586     25,961  
Loans Held-for-Sale     208     -  
Loans, Net     918,170     787,661  
Total Liabilities     1,236,573     1,146,870  
Non Municipal Non-Maturity Deposits     817,305     794,808  
Municipal Non-Maturity Deposits     125,257     129,839  
Certificates of Deposit     119,079     79,232  
Securities Sold Under Agreements to Repurchase     78,793     109,606  
Federal Home Loan Bank Advances     55,000     -  
Junior Subordinated Debentures     20,620     20,620  
Stockholders' Equity     64,436     100,646  
Profitability and Efficiency          
Net Interest Margin     2.90 %   2.81 %
Yield on Earning Assets     3.24     3.00  
Cost of Interest Bearing Liabilities     0.46     0.25  
Book Value Per Share of Common Shares Outstanding   $ 23.42   $ 36.58  
Tangible Book Value Per Share of Common Shares Outstanding     19.63     32.75  
Common Shares Outstanding     2,751,650     2,751,650  
Weighted Average Number of Common Shares, Basic     2,751,650     2,751,650  
Capital Ratios for the Bank          
Tier 1 Core Capital to Average Assets     8.15 %   8.92 %
Common Equity Risk-Based Capital     13.46     14.37  
Tier 1 Risk-Based Capital     13.46     14.37  
Total Risk-Based Capital     14.71     15.62  

 

About Northway Financial, Inc.

Northway Financial, Inc., headquartered in North Conway, 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 17 full-service banking offices and its loan production offices located in Bedford and Portsmouth, New Hampshire.

Forward-looking Statements

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:
Gary Laurash
Chief Financial Officer
603-326-7377


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