Northway Financial, Inc. Announces Third Quarter Earnings
October 28, 2022 at 08:01 am EDT
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NORTH CONWAY, N.H., Oct. 28, 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 September 30, 2022 of $13 Thousand, or $(0.00) per basic common share. Year-to-date, the Company reported a net loss of $1.2MM, or $(0.45) per basic common share.
President and CEO William J. Woodward commented: The first nine months of this year have been one of the most challenging times in recent history given the economic and interest rate environments. Despite these difficult times, the core earnings of the Bank remain strong as we have been able to continue to execute our organic loan growth plan, resulting in total loans increasing 13% since last year. The growth was fueled by commercial, residential, and municipal loan production. Our core deposits, which we define as our customer’s non-maturity deposits, grew by 6% which is indicative of the strong position we hold in the state for both retail and commercial customers. The credit quality of our loan portfolio continues to be strong, and we are prepared for the uncertain future by building our reserves for loan losses. The value of investments and equity securities was negatively impacted by the significant decline in the economy and resulted in the net loss in earnings.
Financial Highlights
Total assets were $1.3 billion, loans, net, were $923 million, and total deposits were $1.1 billion at September 30, 2022.
The loan portfolio increased $108 million, or 13%, compared to September 30, 2021.
Residential mortgage loan balances increased $85 million, or 34%, compared to September 30, 2021.
Commercial real estate loans increased $46 million, or 12%, compared to September 30, 2021.
Non-maturity deposits increased $59 million, or 6%, compared to September 30, 2021.
Year-to-Date Net Interest and Dividend Income increased $3.2, million or 14%, compared to September 30, 2021.
Due to loan growth and the uncertain economic environment, year-to-date earnings was impacted by a $1 million Provision for Loan Losses expense.
The adverse economic environment effecting the equity markets negatively impacted earnings by $5.4 million.
The rapid rise in interest rates in 2022 resulted in a 15% decline in the market value of the investment portfolio.
Nonperforming loans as a percentage of total loans stood at 0.21% compared to 0.27% at September 30, 2021.
The Bank’s regulatory capital ratios at September 30, 2022 exceeded all well-capitalized ratios as defined under FDIC’s prompt corrective action rules.
The market price of our common stock, as of October 27, 2022, was $23.77.
Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
Nine Months Ended
9/30/2022
9/30/2021
9/30/2022
9/30/2021
Interest and Dividend Income
$
10,302
$
8,754
$
28,338
$
24,855
Interest Expense
1,015
519
2,070
1,745
Net Interest and Dividend Income
9,287
8,235
26,268
23,110
Provision for Loan Losses
750
-
1,050
-
All Other Noninterest Income
908
1,112
2,338
3,718
Noninterest Expense
7,957
7,172
24,183
21,994
Net Income Before Gain (Loss) on Securities
1,488
2,175
3,373
4,834
Gain on Securities Available-for-Sale, net
-
63
-
63
(Loss) on Marketable Equity Securities
(1,805
)
(326
)
(5,645
)
2,025
(Loss) Income before Income Tax (Benefit) Expense
(317
)
1,912
(2,272
)
6,922
Income Tax (Benefit) Expense
(304
)
332
(1,028
)
1,206
Net (Loss) Income
$
(13
)
$
1,580
$
(1,244
)
$
5,716
Net (Loss) Income Available to Common Stockholders
$
(13
)
$
1,580
$
(1,244
)
$
5,716
Earnings per Common Share, Basic
$
-
$
0.58
$
(0.45
)
$
2.08
9/30/2022
12/31/2021
9/30/2021
Balance Sheet
Total Assets
$
1,318,922
$
1,247,516
$
1,228,436
Cash and Due from Banks and Interest-Bearing Deposits
22,548
93,958
48,523
Securities Available-for-Sale, at Fair Value
292,149
301,428
299,705
Marketable Equity Securities, at Fair Value
21,799
25,961
26,603
Loans, Net
922,587
787,661
813,473
Total Liabilities
1,260,084
1,146,870
1,130,268
Non Municipal Non-Maturity Deposits
844,776
794,808
796,369
Municipal Non-Maturity Deposits
131,201
129,839
120,631
Certificates of Deposit
76,331
79,232
82,604
Securities Sold Under Agreements to Repurchase
92,258
109,606
96,464
Federal Home Loan Bank Advances
73,000
-
-
Junior Subordinated Debentures
20,620
20,620
20,620
Stockholders' Equity
58,838
100,646
98,168
Profitability and Efficiency
Net Interest Margin
2.92
%
2.81
%
2.78
%
Yield on Earning Assets
3.14
3.00
2.98
Cost of Interest Bearing Liabilities
0.30
0.25
0.27
Book Value Per Share of Common Shares Outstanding
$
21.38
$
36.58
$
35.68
Tangible Book Value Per Share of Common Shares Outstanding
17.58
32.75
31.84
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
Capital Ratios for the Bank
Tier 1 Core Capital to Average Assets
8.31
%
8.92
%
8.74
%
Common Equity Risk-Based Capital
12.56
14.37
13.78
Tier 1 Risk-Based Capital
12.56
14.37
13.78
Total Risk-Based Capital
13.81
15.62
15.02
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
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.
NORTHWAY FINANCIAL, INC. 
