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