Northway Financial, Inc. Announces Third Quarter Earnings
NORTH CONWAY, N.H., Oct. 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 quarter ended September 30, 2023, of $1.6 million, or $0.58 per basic common share. Year-to-date, the Company reported net income of $4.7 million, or $1.71 per basic common share.
President and CEO William J. Woodward commented: “We continue to operate in very uncertain times as the frequency of interest rate increases by the Federal Reserve has caused disruption for consumers, businesses, and the banking infrastructure. We continue to be cautious in our lending and aggressive in defending our core deposit base. Actions taken in prior periods are paying off as Year-to-Date Net Interest and Dividend Income is holding steady despite the pressure on our cost of funding. We are maintaining elevated levels of cash balances as a precaution against further industry turmoil. The credit quality of our loan portfolio continues to perform at or better than peers and we are optimistic that this advantage will continue.”
Financial Highlights
Total assets were $1.4 billion. Net loans were $956 million, and total deposits were $1.05 billion at September 30, 2023.
Total loan portfolio increased $34 million or 3.6% compared to September 30, 2022.
Residential mortgage loan balances increased $21 million, or 6%, compared to September 30, 2022.
Total deposits decreased $6 million compared to September 30, 2022; however, deposits sourced through wholesale channels increased $92 million.
Total time deposits, excluding broker deposits, increased $18 million or 30% when compared to September 30, 2022.
Total borrowings increased $66 million to $139 million when compared to September 30, 2022.
Year-to-Date Net Income was $4.7 million or $5.9 million higher than September 30, 2022, which reflects the impact of a $5.6 million change in market value of the Bank’s Marketable Equity Securities Portfolio.
As of September 30, 2023, the balance of the Marketable Equity Securities portfolio was $3.4 million which was $18 million lower than September 30, 2022, due to the sale of securities.
Net Interest and Dividend Income before Provision for Loan Losses was $26.3 million which was unchanged from September 30, 2022.
The Year-to-Date Net Interest Margin was 2.67% or .25% lower than the same period in 2022: the result of an increase in the yield on earning assets of .72% offset by an increase in the cost of interest-bearing liabilities of 1.24%.
Nonperforming loans as a percentage of total loans stood at 0.31% compared to 0.21% at September 30, 2022.
The Bank’s regulatory capital ratios at September 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 October 26, 2023, was $16.95.
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Northway Financial, Inc. | |||||||||||||||
Selected Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
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(Dollars in thousands, except per share data) | Three Months Ended |
| Nine Months Ended | ||||||||||||
| 9/30/2023 |
| 9/30/2022 |
| 9/30/2023 |
| 9/30/2022 | ||||||||
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Interest and Dividend Income | $ | 13,372 |
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| $ | 10,302 |
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| $ | 38,260 |
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| $ | 28,338 |
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Interest Expense |
| 4,572 |
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| 1,015 |
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| 12,002 |
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| 2,070 |
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Net Interest and Dividend Income |
| 8,800 |
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| 9,287 |
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| 26,258 |
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| 26,268 |
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Provision for Loan Losses |
| - |
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| 750 |
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| - |
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| 1,050 |
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All Other Noninterest Income |
| 1,036 |
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| 908 |
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| 3,535 |
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| 2,338 |
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Noninterest Expense |
| 7,720 |
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| 7,957 |
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| 24,030 |
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| 24,183 |
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Net Income Before Gain (Loss) on Securities |
| 2,116 |
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| 1,488 |
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| 5,763 |
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| 3,373 |
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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 |
| (199 | ) |
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| (1,805 | ) |
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| (309 | ) |
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| (5,645 | ) |
Income (Loss) before Income Tax Expense (Benefit) |
| 1,917 |
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| (317 | ) |
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| 5,454 |
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| (2,272 | ) |
Income Tax Expense (Benefit) |
| 305 |
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| (304 | ) |
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| 744 |
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| (1,028 | ) |
Net Income (Loss) | $ | 1,612 |
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| $ | (13 | ) |
| $ | 4,710 |
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| $ | (1,244 | ) |
Net Income (Loss) Available to Common Stockholders | $ | 1,612 |
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| $ | (13 | ) |
| $ | 4,710 |
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| $ | (1,244 | ) |
Earnings per Common Share, Basic | $ | 0.58 |
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| $ | - |
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| $ | 1.71 |
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| $ | (0.45 | ) |
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| 9/30/2023 |
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| 12/31/2022 |
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| 9/30/2022 | |||||
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Balance Sheet |
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Total Assets | $ | 1,357,654 |
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| $ | 1,302,602 |
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| $ | 1,318,922 |
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Cash and Due from Banks and Interest-Bearing Deposits |
| 74,139 |
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| 26,520 |
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| 22,548 |
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Securities Available-for-Sale, at Fair Value |
| 261,502 |
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| 288,576 |
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| 292,149 |
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Marketable Equity Securities, at Fair Value |
| 3,405 |
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| 10,586 |
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| 21,799 |
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Loans Held-for-Sale |
| - |
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| 208 |
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| - |
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Loans, Net |
| 956,053 |
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| 918,170 |
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| 922,587 |
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Total Liabilities |
| 1,299,301 |
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| 1,238,166 |
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| 1,260,084 |
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Non Municipal Non-Maturity Deposits |
| 763,784 |
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| 817,305 |
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| 844,776 |
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Municipal Non-Maturity Deposits |
| 138,674 |
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| 125,257 |
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| 131,201 |
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Certificates of Deposit |
| 143,868 |
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| 119,079 |
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| 76,331 |
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Securities Sold Under Agreements to Repurchase |
| 68,728 |
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| 78,793 |
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| 92,258 |
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Short-Term Borrowings |
| 28,600 |
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| 55,000 |
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| 73,000 |
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Long-Term Borrowings |
| 110,000 |
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| - |
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| - |
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Junior Subordinated Debentures |
| 20,620 |
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| 20,620 |
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| 20,620 |
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Stockholders' Equity |
| 58,353 |
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| 64,436 |
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| 58,838 |
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Profitability and Efficiency |
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Net Interest Margin |
| 2.67 | % |
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| 2.90 | % |
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| 2.92 | % | |
Yield on Earning Assets |
| 3.86 |
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| 3.24 |
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| 3.14 |
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Cost of Interest Bearing Liabilities |
| 1.54 |
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| 0.46 |
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| 0.30 |
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Book Value Per Share of Common Shares Outstanding | $ | 21.21 |
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| $ | 23.42 |
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| $ | 21.38 |
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Tangible Book Value Per Share of Common Shares Outstanding |
| 17.42 |
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| 19.63 |
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| 17.58 |
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Common Shares Outstanding |
| 2,751,650 |
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| 2,751,650 |
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| 2,751,650 |
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Weighted Average Number of Common Shares, Basic |
| 2,751,650 |
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| 2,751,650 |
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| 2,751,650 |
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Capital Ratios for the Bank |
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Tier 1 Core Capital to Average Assets |
| 8.23 | % |
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| 8.15 | % |
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| 8.31 | % | |
Common Equity Risk-Based Capital |
| 13.91 |
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| 13.47 |
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| 12.56 |
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Tier 1 Risk-Based Capital |
| 13.91 |
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| 13.47 |
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| 12.56 |
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Total Risk-Based Capital |
| 15.16 |
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| 14.72 |
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| 13.81 |
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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
