Northway Financial, Inc. Announces Second Quarter Earnings and Declares Semi-Annual Dividend
NORTH CONWAY, N.H., July 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 June 30, 2023, of $1.7 million, or $0.63 per basic common share. Year-to-date, the Company reported net income of $3.1 million, or $1.13 per basic common share.
The Board of Directors declared a semi-annual cash dividend of $0.35 per share, payable on August 14, 2023, to common stockholders of record on August 7, 2023.
President and CEO William J. Woodward commented: “Our reported earnings of $3.1 million for the first six months of 2023 is a marked improvement from a year ago. We made some changes to our balance sheet to reduce our exposure to the volatile U.S. equity markets. We experienced a decrease in our core deposits, as some of our customers had to access their savings to deal with the rise in the cost of living. In spite of the economy, we experienced an increase in our loan volume, which we have funded through wholesale markets. We have a solid customer base, experienced employees, and are confident in our efforts to drive value to our communities and our shareholders.”
Financial Highlights
Total assets were $1.4 billion. Net loans were $950 million, and total deposits were $1.1 billion at June 30, 2023.
Total loan portfolio increased $96 million or 11% compared to June 30, 2022.
Residential mortgage loan balances increased $59 million, or 20%, compared to June 30, 2022.
Commercial real estate loans increased $30 million, or 8%, compared to June 30, 2022.
As a safeguard against liquidity concerns gripping the industry, the Bank increased its Cash balances by $48 million.
Total deposits increased $26 million compared to June 30, 2022; however, deposits sourced through wholesale channels increased $95 million.
Total borrowings increased $134 million when compared to June 30, 2022.
Year-to-Date Net Income was $3.1 million or $4.3 million higher than June 30, 2022, which reflects a $3.7 million change in market value of the Bank’s Marketable Equity Securities Portfolio.
As of June 30, 2023, the balance of the Marketable Equity Securities portfolio was $6 million or $17 million lower than June 30, 2022.
Nonperforming loans as a percentage of total loans stood at 0.25% compared to 0.22% at June 30, 2022.
The Bank’s regulatory capital ratios at June 30, 2023 exceeded all well-capitalized ratios as defined under FDIC’s prompt corrective action rules.
The market price of our common stock, as of July 27, 2023, was $18.50.
Northway Financial, Inc. | ||||||||||||||
Selected Financial Highlights | ||||||||||||||
(Unaudited) | ||||||||||||||
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(Dollars in thousands, except per share data) | Three Months Ended |
| Six Months Ended | |||||||||||
| 6/30/2023 |
| 6/30/2022 |
| 6/30/2023 |
| 6/30/2022 | |||||||
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Interest and Dividend Income | $ | 12,940 |
| $ | 9,325 |
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| $ | 24,888 |
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| $ | 18,036 |
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Interest Expense |
| 4,545 |
|
| 601 |
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| 7,430 |
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| 1,055 |
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Net Interest and Dividend Income |
| 8,395 |
|
| 8,724 |
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| 17,458 |
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| 16,981 |
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Provision for Loan Losses |
| - |
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| 300 |
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| - |
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| 300 |
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All Other Noninterest Income |
| 1,253 |
|
| 631 |
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| 2,499 |
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| 1,430 |
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Noninterest Expense |
| 7,836 |
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| 8,025 |
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| 16,310 |
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| 16,226 |
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Net Income Before Gain (Loss) on Securities |
| 1,812 |
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| 1,030 |
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| 3,647 |
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| 1,885 |
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Gain (Loss) on Securities Available-for-Sale, net |
| - |
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| - |
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| - |
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| - |
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Gain (Loss) on Marketable Equity Securities |
| 140 |
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| (2,656 | ) |
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| (110 | ) |
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| (3,840 | ) |
Income (Loss) before Income Tax Expense (Benefit) |
| 1,952 |
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| (1,626 | ) |
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| 3,537 |
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| (1,955 | ) |
Income Tax Expense (Benefit) |
| 229 |
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| (526 | ) |
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| 439 |
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| (724 | ) |
Net Income (Loss) | $ | 1,723 |
| $ | (1,100 | ) |
| $ | 3,098 |
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| $ | (1,231 | ) |
Net Income (Loss) Available to Common Stockholders | $ | 1,723 |
| $ | (1,100 | ) |
| $ | 3,098 |
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| $ | (1,231 | ) |
Earnings per Common Share, Basic | $ | 0.63 |
| $ | (0.40 | ) |
| $ | 1.13 |
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| $ | (0.45 | ) |
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| 6/30/2023 |
| 12/31/2022 |
| 6/30/2022 | |||
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Balance Sheet |
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Total Assets |
| $ | 1,369,352 |
| $ | 1,302,602 |
| $ | 1,244,107 |
Cash and Due from Banks and Interest-Bearing Deposits |
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| 74,260 |
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| 26,520 |
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| 26,316 |
Securities Available-for-Sale, at Fair Value |
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| 281,187 |
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| 288,576 |
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| 290,634 |
Marketable Equity Securities, at Fair Value |
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| 5,606 |
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| 10,586 |
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| 23,152 |
Loans Held-for-Sale |
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| 469 |
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| 208 |
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| - |
Loans, Net |
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| 949,547 |
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| 918,170 |
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| 853,974 |
Total Liabilities |
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| 1,301,879 |
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| 1,238,166 |
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| 1,171,102 |
Non Municipal Non-Maturity Deposits |
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| 760,416 |
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| 817,305 |
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| 827,737 |
Municipal Non-Maturity Deposits |
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| 149,713 |
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| 125,257 |
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| 132,359 |
Certificates of Deposit |
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| 151,182 |
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| 119,079 |
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| 72,778 |
Securities Sold Under Agreements to Repurchase |
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| 63,878 |
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| 78,793 |
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| 98,584 |
Short-Term Borrowings |
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| 9,500 |
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| 55,000 |
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| - |
Long-Term Borrowings |
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| 125,000 |
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| - |
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| - |
Junior Subordinated Debentures |
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| 20,620 |
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| 20,620 |
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| 20,620 |
Stockholders' Equity |
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| 67,473 |
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| 64,436 |
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| 73,005 |
Profitability and Efficiency |
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Net Interest Margin |
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| 2.70 | % |
| 2.90 | % |
| 2.89 |
Yield on Earning Assets |
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| 3.82 |
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| 3.24 |
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| 3.06 |
Cost of Interest Bearing Liabilities |
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| 1.45 |
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| 0.46 |
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| 0.24 |
Book Value Per Share of Common Shares Outstanding |
| $ | 24.52 |
| $ | 23.42 |
| $ | 26.53 |
Tangible Book Value Per Share of Common Shares Outstanding |
| 20.74 |
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| 19.63 |
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| 22.72 | |
Common Shares Outstanding |
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| 2,751,650 |
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| 2,751,650 |
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| 2,751,650 |
Weighted Average Number of Common Shares, Basic |
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| 2,751,650 |
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| 2,751,650 |
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| 2,751,650 |
Capital Ratios for the Bank |
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Tier 1 Core Capital to Average Assets |
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| 8.16 | % |
| 8.15 | % |
| 8.72 |
Common Equity Risk-Based Capital |
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| 13.59 |
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| 13.47 |
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| 13.32 |
Tier 1 Risk-Based Capital |
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| 13.59 |
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| 13.47 |
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| 13.32 |
Total Risk-Based Capital |
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| 14.84 |
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| 14.72 |
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| 14.55 |
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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 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
