Northway Financial, Inc. Announces Third Quarter Earnings
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
