Northway Financial, Inc. Announces 2022 Earnings and Declares Semi-Annual Dividend
January 27, 2023 at 06:31 pm IST
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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
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.