Northway Financial, Inc. Announces First Quarter Earnings
April 29, 2022 at 08:01 am EDT
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NORTH CONWAY, N.H., April 29, 2022 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the “Company”) (OTCQB: NWYF), the parent company of Northway Bank (the “Bank”), today reported a net loss for the quarter ended March 31, 2022 of $0.1MM, or $(0.05) per basic common share.
President and CEO William J. Woodward commented: In the first quarter of 2022 we were able to continue the momentum of the prior year in terms of loan and deposit growth. Loans grew $27 million or 3% and non municipal non-maturity deposits grew $31 million or 4% when compared to December 31, 2021. The turbulent and uncertain times that we are in, did negatively impact our reported net income, as the value of our equity security portfolio moved in tandem with the general stock market. Net income, excluding the change in value of our equity portfolio, would have been $659 thousand. Our loan and deposit growth are reflective of the Bank’s commitment to its customers.
Financial Highlights
Total assets were $1.2 billion, total loans, net, were $815 million, and total deposits were $1 billion at March 31, 2022.
The loan portfolio increased $52 million, or 7%, compared to March 31, 2021.
Residential mortgage loan balances increased $74 million, or 37%, compared to March 31, 2021.
Commercial Real Estate loans increased $45 million, or 13%, compared to March 31, 2021.
As of March 31, 2022, $95 million, or 94%, of Paycheck Protection Program loans originated by the Bank were either forgiven by the U.S. Small Business Administration or paid back by the borrowers.
Cash and Due from Banks and Interest-Bearing Deposits decreased $107 million, or 66%, compared to March 31, 2021.
Securities Available-for-Sale, at Fair Value increased $95 million, or 50%, compared to March 31, 2021.
Net Income was impacted by a negative $1.2 million change in Fair Value of Marketable Equity Securities from December 31, 2021.
Total deposits increased 7% compared to March 31, 2021, driven by a 9% increase in total non-maturity deposits of $80 million.
The cost of interest bearing liabilities was 0.20% compared to 0.33% at March 31, 2021.
Nonperforming loans as a percentage of total loans stood at 0.27% at March 31, 2022 compared to 0.35% at March 31, 2021.
The Bank’s regulatory capital ratios at March 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 April 28, 2022, was $31.45.
Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
3/31/2022
3/31/2021
Interest and Dividend Income
$
8,711
$
7,965
Interest Expense
454
671
Net Interest and Dividend Income
8,257
7,294
Provision for Loan Losses
-
-
All Other Noninterest Income
799
1,313
Noninterest Expense
8,201
7,589
Net Income Before Gain (Loss) on Securities
855
1,018
Gain on Securities Available-for-Sale, net
-
-
(Loss) Gain on Marketable Equity Securities
(1,184
)
1,273
(Loss) Income before Income Tax Expense
(329
)
2,291
Income Tax (Benefit) Expense
(198
)
392
Net (Loss) Income
$
(131
)
$
1,899
Net (Loss) Income Available to Common Stockholders
$
(131
)
$
1,899
Earnings per Common Share, Basic
$
(0.05
)
$
0.69
3/31/22
12/31/2021
3/31/2021
Balance Sheet
Total Assets
$
1,226,571
$
1,247,516
$
1,182,047
Cash and Due from Banks and Interest-Bearing Deposits
55,241
93,958
162,361
Securities Available-for-Sale, at Fair Value
286,389
301,428
191,526
Marketable Equity Securities, at Fair Value
25,306
25,961
23,965
Loans, Net
815,177
787,661
763,428
Total Liabilities
1,141,038
1,146,870
1,086,244
Non Municipal Non-Maturity Deposits
825,633
794,808
752,921
Municipal Non-Maturity Deposits
114,844
129,839
107,566
Certificates of Deposit
75,759
79,232
91,870
Securities Sold Under Agreements to Repurchase
87,874
109,606
86,952
Junior Subordinated Debentures
20,620
20,620
20,620
Stockholders' Equity
85,533
100,646
95,803
Profitability and Efficiency
Net Interest Margin
2.83
%
2.81
%
2.76
%
Yield on Earning Assets
2.99
3.00
3.01
Cost of Interest Bearing Liabilities
0.20
0.25
0.33
Book Value Per Share of Common Shares Outstanding
$
31.08
$
36.58
$
34.82
Tangible Book Value Per Share of Common Shares Outstanding
27.27
32.75
30.94
Capital and Credit
Tier 1 Core Capital to Average Assets
9.09
%
9.22
%
9.42
%
Common Equity Risk-Based Capital
11.69
12.21
12.45
Tier 1 Risk-Based Capital
14.22
14.81
15.31
Total Risk-Based Capital
15.43
16.06
16.57
Common Shares Outstanding
2,751,650
2,751,650
2,751,650
Weighted Average Number of Common Shares, Basic
2,751,650
2,751,650
2,751,650
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.
Northway Financial, Inc. is a bank holding company for Northway Bank (the Bank). The Bank is engaged principally in the business of attracting deposits from the general public and investing those deposits in securities, commercial loans, real estate loans and consumer loans. It has six segments. Residential segment offers first lien mortgages and home equity loans. Construction segment offers residential construction and commercial real estate construction loans. Commercial segment offers loans, which are secured primarily by income-producing investor-owned or owner-occupied business properties. Commercial segment offers loans, which are made to businesses and are generally secured by assets of the business. Consumer segment offers automobile and aircraft loans, and repayment is dependent on the credit quality of the individual borrower. Municipal segment offers loans, which are generally unsecured, and repayment is dependent on the tax assessments of the local municipalities.