NORTH CONWAY, N.H., July 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 June 30, 2022 of $1.1MM, or $(0.40) per basic common share. Year-to-date, the Company reported a net loss of $1.2MM, or $(0.45) per basic common share.
The Board of Directors declared a semi-annual cash dividend of $0.35 per share, payable on August 15, 2022, to common stockholders of record on August 8, 2022.
President and CEO William J. Woodward commented: Although our focus is on growing our core business, I would like to note that the downturn in the equity markets had a significant negative impact of $2.7 million on net income. We are required to report the unrealized gains or losses in the equity portfolio through our income statement. Our net income from operations excluding the impact of equities was $1.5 million.
We continue to execute our business plan of organic growth in loans and deposits. Excluding Paycheck Protection Program loans, in the last 12 months Commercial loans grew $33 million, or 9%, and Residential Real Estate loans grew $85 million, or 39%. Despite the rise in interest rates in the past six months and industry-wide mortgage originations at historically low levels, our Residential Mortgage business was able to generate $68 million of new loans, which was only 14% lower than the record volumes generated in the same period in 2021. Lastly, we continue to prepare for a potentially weak economic environment.
Financial Highlights
- Total assets were $1.2 billion, loans, net, were $854 million, and total deposits were $1 billion at June 30, 2022.
- The loan portfolio increased $55 million, or 7%, compared to June 30, 2021.
- Residential mortgage loan balances increased $85 million, or 39%, compared to June 30, 2021.
- Commercial Real Estate loans increased $33 million, or 9%, compared to June 30, 2021.
- As of June 30, 2022, 99%, 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 $29 million, or 53%, compared to June 30, 2021.
- Net Income was impacted by a negative $3.8 million change in Fair Value of Marketable Equity Securities from December 31, 2021.
- Total deposits increased 5% compared to June 30, 2021, driven by a 7% increase in total non-maturity deposits of $67 million.
- The cost of interest bearing liabilities was 0.24% compared to 0.30% at June 30, 2021.
- Nonperforming loans as a percentage of total loans stood at 0.22% at June 30, 2022 compared to 0.30% at June 30, 2021.
- The Bank’s regulatory capital ratios at June 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 July 28, 2022, was $29.05.
| Northway Financial, Inc. | ||||||||||||||
| Selected Financial Highlights | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | Year Ended | ||||||||||||
| 6/30/2022 | 6/30/2021 | 6/30/2022 | 6/30/2021 | |||||||||||
| Interest and Dividend Income | $ | 9,325 | $ | 8,136 | $ | 18,036 | $ | 16,101 | ||||||
| Interest Expense | 601 | 555 | 1,055 | 1,226 | ||||||||||
| Net Interest and Dividend Income | 8,724 | 7,581 | 16,981 | 14,875 | ||||||||||
| Provision for Loan Losses | 300 | – | 300 | – | ||||||||||
| All Other Noninterest Income | 631 | 1,293 | 1,430 | 2,606 | ||||||||||
| Noninterest Expense | 8,025 | 7,233 | 16,226 | 14,822 | ||||||||||
| Net Income Before Gain (Loss) on Securities | 1,030 | 1,641 | 1,885 | 2,659 | ||||||||||
| (Loss) Gain on Marketable Equity Securities | (2,656 | ) | 1,078 | (3,840 | ) | 2,351 | ||||||||
| (Loss) Income before Income Tax Expense | (1,626 | ) | 2,719 | (1,955 | ) | 5,010 | ||||||||
| Income Tax (Benefit) Expense | (526 | ) | 482 | (724 | ) | 874 | ||||||||
| Net (Loss) Income | $ | (1,100 | ) | $ | 2,237 | $ | (1,231 | ) | $ | 4,136 | ||||
| Net (Loss) Income Available to Common Stockholders | $ | (1,100 | ) | $ | 2,237 | $ | (1,231 | ) | $ | 4,136 | ||||
| Earnings per Common Share, Basic | $ | (0.40 | ) | $ | 0.81 | $ | (0.45 | ) | $ | 3.38 | ||||
| 6/30/2022 | 12/31/2021 | 6/30/2021 | |||||||||
| Balance Sheet | |||||||||||
| Total Assets | $ | 1,244,107 | $ | 1,247,516 | $ | 1,208,960 | |||||
| Cash and Due from Banks and Interest-Bearing Deposits | 26,316 | 93,958 | 55,620 | ||||||||
| Securities Available-for-Sale, at Fair Value | 290,634 | 301,428 | 287,016 | ||||||||
| Marketable Equity Securities, at Fair Value | 23,152 | 25,961 | 27,522 | ||||||||
| Loans, Net | 853,974 | 787,661 | 798,744 | ||||||||
| Total Liabilities | 1,171,102 | 1,146,870 | 1,110,199 | ||||||||
| Non Municipal Non-Maturity Deposits | 827,737 | 794,808 | 762,855 | ||||||||
| Municipal Non-Maturity Deposits | 132,359 | 129,839 | 130,407 | ||||||||
| Certificates of Deposit | 72,778 | 79,232 | 86,366 | ||||||||
| Securities Sold Under Agreements to Repurchase | 98,584 | 109,606 | 96,553 | ||||||||
| Junior Subordinated Debentures | 20,620 | 20,620 | 20,620 | ||||||||
| Stockholders’ Equity | 73,005 | 100,646 | 98,761 | ||||||||
| Profitability and Efficiency | |||||||||||
| Net Interest Margin | 2.89 | % | 2.81 | % | 2.76 | % | |||||
| Yield on Earning Assets | 3.06 | 3.00 | 2.98 | ||||||||
| Cost of Interest Bearing Liabilities | 0.24 | 0.25 | 0.30 | ||||||||
| Book Value Per Share of Common Shares Outstanding | $ | 26.53 | $ | 36.58 | $ | 35.89 | |||||
| Tangible Book Value Per Share of Common Shares Outstanding | 22.72 | 32.75 | 32.04 | ||||||||
| 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 | 8.72 | % | 8.92 | % | 9.06 | % | |||||
| Common Equity Risk-Based Capital | 13.32 | 14.37 | 14.08 | ||||||||
| Tier 1 Risk-Based Capital | 13.32 | 14.37 | 14.08 | ||||||||
| Total Risk-Based Capital | 14.55 | 15.62 | 15.33 | ||||||||
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.
