Northway Financial, Inc. Announces First Quarter Earnings

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. 

Contact:

Gary Laurash Chief Financial Officer 603-326-7377