Northway Financial, Inc. Announces First Quarter Earnings
NORTH CONWAY, N.H., April 28, 2023 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the “Company”) (OTCQB: NWYF), the parent company of Northway Bank (the “Bank”), today reported net income for the quarter ended March 31, 2023, of $1.4 million, or $0.50 per basic common share.
President and CEO William J. Woodward commented: “In the first quarter, net income increased $1.5 million compared to last year as loan growth fueled an increase in net interest income. The Federal Reserve increased rates by 400 basis points from March of 2022 to March of 2023. This unprecedented increase in rates affected everyone and we know that many of our customers have been significantly impacted. The failure of Silicon Valley Bank and Signature Bank caused a temporary concern by customers regarding the safety of their deposits. We took the opportunity to communicate with our customers regarding the many ways they can secure their deposits. We are fortunate to have a very loyal customer base, which is not something we take for granted. The efforts we took were very much appreciated by our customers. We are looking forward to our 2023 annual meeting of shareholders, which is expected to be held on May 25, 2023. In accordance with the Company’s bylaws, any shareholder proposals must be received by the Company no later than May 13, 2023. We look forward to connecting with our shareholders in person at the meeting.”
Financial Highlights
Total assets were $1.4 billion. Net loans were $938 million, and total deposits were $1 billion at March 31, 2023.
Residential mortgage loan balances increased $81 million, or 30%, compared to March 31, 2022.
Commercial real estate loans increased $35 million, or 9%, compared to March 31, 2022.
Total deposits were unchanged from March 31, 2022; however, $30 million of deposits at March 31, 2023 were considered brokered time deposits, of which there were none at March 31, 2022.
Total borrowings increased $159 million when compared to March 31, 2022. $50 million of the borrowings are currently held in Cash earning interest to deal with any potential market volatility.
Year-to-Date Net Income was $1.4 million or $1.5 million higher than March 31, 2022.
Year-to-Date Net Interest and Dividend Income was $9.1 million or 10% greater than March 31, 2022.
During the previous 12 months, $20 million of the equity portfolio was liquidated which reduced its effect on Net Income by $1 million via a lower loss on Marketable Equity Securities when compared to March 31, 2022.
The rapid rise in interest rates since March 2022 resulted in a decline in the market value of securities classified as Available for Sale, which reduced Total Capital by $19 million from the same period last year. This adjustment does not affect regulatory capital.
Nonperforming loans as a percentage of total loans stood at 0.24% compared to 0.27% at March 31, 2022.
The Bank’s regulatory capital ratios at March 31, 2023 exceeded all well-capitalized ratios as defined under FDIC’s prompt corrective action rules.
The market price of our common stock, as of April 27, 2023, was $18.25.
Northway Financial, Inc. | |||||||
Selected Financial Highlights | |||||||
(Unaudited) | |||||||
|
|
|
| ||||
(Dollars in thousands, except per share data) | Three Months Ended | ||||||
| 3/31/2023 |
| 3/31/2022 | ||||
|
|
|
| ||||
Interest and Dividend Income | $ | 11,948 |
|
| $ | 8,711 |
|
Interest Expense |
| 2,885 |
|
|
| 454 |
|
Net Interest and Dividend Income |
| 9,063 |
|
|
| 8,257 |
|
Provision for Loan Losses |
| - |
|
|
| - |
|
All Other Noninterest Income |
| 1,246 |
|
|
| 799 |
|
Noninterest Expense |
| 8,474 |
|
|
| 8,201 |
|
Net Income Before Gain (Loss) on Securities |
| 1,835 |
|
|
| 855 |
|
Gain (Loss) on Securities Available-for-Sale, net |
| - |
|
|
| - |
|
Loss on Marketable Equity Securities |
| (250 | ) |
|
| (1,184 | ) |
Income (Loss) before Income Tax Expense (Benefit) |
| 1,585 |
|
|
| (329 | ) |
Income Tax Expense (Benefit) |
| 210 |
|
|
| (198 | ) |
Net Income (Loss) | $ | 1,375 |
|
| $ | (131 | ) |
Net Income (Loss) Available to Common Stockholders | $ | 1,375 |
|
| $ | (131 | ) |
Earnings per Common Share, Basic | $ | 0.50 |
|
| $ | (0.05 | ) |
|
| 3/31/2023 |
| 12/31/2022 |
| 3/31/2022 |
| |||
|
|
|
|
|
|
|
| |||
Balance Sheet |
|
|
|
|
|
|
| |||
Total Assets |
| $ | 1,369,822 |
| $ | 1,302,602 |
| $ | 1,226,571 |
|
Cash and Due from Banks and Interest-Bearing Deposits |
|
| 76,306 |
|
| 26,520 |
|
| 55,241 |
|
Securities Available-for-Sale, at Fair Value |
|
| 290,511 |
|
| 288,576 |
|
| 286,389 |
|
Marketable Equity Securities, at Fair Value |
|
| 5,467 |
|
| 10,586 |
|
| 25,306 |
|
Loans Held-for-Sale |
|
| 690 |
|
| 208 |
|
| - |
|
Loans, Net |
|
| 938,470 |
|
| 918,170 |
|
| 815,177 |
|
Total Liabilities |
|
| 1,300,726 |
|
| 1,238,166 |
|
| 1,141,038 |
|
Non Municipal Non-Maturity Deposits |
|
| 773,702 |
|
| 817,305 |
|
| 825,633 |
|
Municipal Non-Maturity Deposits |
|
| 127,777 |
|
| 125,257 |
|
| 114,844 |
|
Certificates of Deposit |
|
| 111,716 |
|
| 119,079 |
|
| 75,759 |
|
Securities Sold Under Agreements to Repurchase |
|
| 50,609 |
|
| 78,793 |
|
| 87,874 |
|
Short-Term Borrowings |
|
| 95,500 |
|
| 55,000 |
|
| - |
|
Long-Term Borrowings |
|
| 100,000 |
|
| - |
|
| - |
|
Junior Subordinated Debentures |
|
| 20,620 |
|
| 20,620 |
|
| 20,620 |
|
Stockholders' Equity |
|
| 69,096 |
|
| 64,436 |
|
| 85,533 |
|
Profitability and Efficiency |
|
|
|
|
|
|
| |||
Net Interest Margin |
|
| 2.87 | % |
| 2.90 | % |
| 2.83 | % |
Yield on Earning Assets |
|
| 3.76 |
|
| 3.24 |
|
| 2.99 |
|
Cost of Interest Bearing Liabilities |
|
| 1.17 |
|
| 0.46 |
|
| 0.20 |
|
Book Value Per Share of Common Shares Outstanding |
| $ | 25.11 |
| $ | 23.42 |
| $ | 31.08 |
|
Tangible Book Value Per Share of Common Shares Outstanding |
|
| 21.33 |
|
| 19.63 |
|
| 27.27 |
|
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 |
|
| 8.36 | % |
| 8.15 | % |
| 8.86 | % |
Common Equity Risk-Based Capital |
|
| 13.51 |
|
| 13.47 |
|
| 13.88 |
|
Tier 1 Risk-Based Capital |
|
| 13.51 |
|
| 13.47 |
|
| 13.88 |
|
Total Risk-Based Capital |
|
| 14.76 |
|
| 14.72 |
|
| 15.11 |
|
|
|
|
|
|
|
|
|
|
|
|
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: Contact: Gary Laurash Chief Financial Officer 603-326-7377
