Northway Financial, Inc. Announces Third Quarter Earnings
October 27, 2023 at 08:01 am EDT
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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.
Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)
(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
Interest and Dividend Income
$
13,372
$
10,302
$
38,260
$
28,338
Interest Expense
4,572
1,015
12,002
2,070
Net Interest and Dividend Income
8,800
9,287
26,258
26,268
Provision for Loan Losses
-
750
-
1,050
All Other Noninterest Income
1,036
908
3,535
2,338
Noninterest Expense
7,720
7,957
24,030
24,183
Net Income Before Gain (Loss) on Securities
2,116
1,488
5,763
3,373
Gain (Loss) on Securities Available-for-Sale, net
-
-
-
-
Gain (Loss) on Marketable Equity Securities
(199
)
(1,805
)
(309
)
(5,645
)
Income (Loss) before Income Tax Expense (Benefit)
1,917
(317
)
5,454
(2,272
)
Income Tax Expense (Benefit)
305
(304
)
744
(1,028
)
Net Income (Loss)
$
1,612
$
(13
)
$
4,710
$
(1,244
)
Net Income (Loss) Available to Common Stockholders
$
1,612
$
(13
)
$
4,710
$
(1,244
)
Earnings per Common Share, Basic
$
0.58
$
-
$
1.71
$
(0.45
)
9/30/2023
12/31/2022
9/30/2022
Balance Sheet
Total Assets
$
1,357,654
$
1,302,602
$
1,318,922
Cash and Due from Banks and Interest-Bearing Deposits
74,139
26,520
22,548
Securities Available-for-Sale, at Fair Value
261,502
288,576
292,149
Marketable Equity Securities, at Fair Value
3,405
10,586
21,799
Loans Held-for-Sale
-
208
-
Loans, Net
956,053
918,170
922,587
Total Liabilities
1,299,301
1,238,166
1,260,084
Non Municipal Non-Maturity Deposits
763,784
817,305
844,776
Municipal Non-Maturity Deposits
138,674
125,257
131,201
Certificates of Deposit
143,868
119,079
76,331
Securities Sold Under Agreements to Repurchase
68,728
78,793
92,258
Short-Term Borrowings
28,600
55,000
73,000
Long-Term Borrowings
110,000
-
-
Junior Subordinated Debentures
20,620
20,620
20,620
Stockholders' Equity
58,353
64,436
58,838
Profitability and Efficiency
Net Interest Margin
2.67
%
2.90
%
2.92
%
Yield on Earning Assets
3.86
3.24
3.14
Cost of Interest Bearing Liabilities
1.54
0.46
0.30
Book Value Per Share of Common Shares Outstanding
$
21.21
$
23.42
$
21.38
Tangible Book Value Per Share of Common Shares Outstanding
17.42
19.63
17.58
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
8.23
%
8.15
%
8.31
%
Common Equity Risk-Based Capital
13.91
13.47
12.56
Tier 1 Risk-Based Capital
13.91
13.47
12.56
Total Risk-Based Capital
15.16
14.72
13.81
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:
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.
NORTHWAY FINANCIAL, INC. 
