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
