Northway Financial, Inc. Announces 2021 Earnings and Declares Semi-Annual Dividend
January 28, 2022 at 08:01 am
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NORTH CONWAY, N.H., Jan. 28, 2022 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the “Company”) (OTCQB: NWYF), the parent company of Northway Bank (the “Bank”), today reported net income for the year ended December 31, 2021 of $9.3 million, or $3.38 per basic common share.
The Board of Directors declared a semi-annual cash dividend of $0.35 per common share, payable on February 14, 2022, to common stockholders of record on February 7, 2022.
President and CEO William J. Woodward commented: “I am pleased to report record earnings of $9.3 million in 2021. In spite of the continuing challenges of the pandemic throughout the year, we were able to grow the loan portfolio by 9% and total deposits by 13%. Most importantly, we continued to build shareholder value as demonstrated by our tangible book value per common share growth of 5% to $32.75. As New Hampshire’s largest commercial bank, we remain committed to serving our communities through our financial products designed for individuals, businesses, and municipalities. This is all made possible by the hard work and dedication of the people of Northway Bank. As we enter 2022 we are optimistic that we will be able to build on the great results of 2021.”
Financial Highlights
Total assets were $1.2 billion, total loans, net, were $788 million, and total deposits were $1 billion at December 31, 2021.
The loan portfolio increased $65 million, or 9%, compared to December 31, 2020.
Residential mortgage loan originations totaled $130 million and new commercial loan originations totaled $103 million.
As of December 31, 2021, $91 million, or 90%, 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.
Securities Available-for-Sale, at Fair Value increased $129 million, or 75%, compared to December 31, 2020.
Marketable Equity Securities, at Fair Value increased $8 million, or 45%, compared to December 31, 2020.
Reported Net Income was positively impacted by a $3.2 million change in Fair Value of Marketable Equity Securities from December 31, 2020.
Total deposits increased 13% compared to December 31, 2020, driven by a 17% increase in total non-maturity deposits of $135 million.
The cost of interest bearing liabilities was 0.25% compared to 0.51% at December 31, 2020.
Nonperforming loans as a percentage of total loans stood at 0.26% at December 31, 2021 compared to 0.42% at December 31, 2020.
The Bank’s regulatory capital ratios at December 31, 2021 exceeded all well-capitalized ratios as defined under FDIC’s prompt corrective action rules.
The market price of our common stock, as of January 27, 2022, was $36.50.
Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
Year Ended
12/31/2021
12/31/2020
12/31/2021
12/31/2020
Interest and Dividend Income
$
8,980
$
8,338
$
33,835
$
32,007
Interest Expense
444
796
2,189
3,731
Net Interest and Dividend Income
8,536
7,542
31,646
28,276
Provision for Loan Losses
-
750
-
2,250
All Other Noninterest Income
1,361
1,908
5,079
7,754
Noninterest Expense
8,106
7,488
30,100
29,896
Net Income Before Gain (Loss) on Securities
1,791
1,212
6,625
3,884
Gain on Securities Available-for-Sale, net
-
-
63
1,175
Gain (Loss) on Marketable Equity Securities
2,632
2,051
4,657
988
Income (Loss) before Income Tax Expense
4,423
3,263
11,345
6,047
Income Tax Expense (Benefit)
836
556
2,042
803
Net Income
$
3,587
$
2,707
$
9,303
$
5,244
Net Income Available to Common Stockholders
$
3,587
$
2,707
$
9,303
$
5,244
Earnings per Common Share, Basic
$
1.30
$
0.99
$
3.38
$
1.91
12/31/2021
12/31/2020
Balance Sheet
Total Assets
$
1,248,053
$
1,120,692
Cash and Due from Banks and Interest-Bearing Deposits
93,958
167,812
Securities Available-for-Sale, at Fair Value
301,428
172,117
Marketable Equity Securities, at Fair Value
25,961
17,901
Loans Held-for-Sale
-
237
Loans, Net
787,661
722,354
Total Liabilities
1,147,407
1,024,577
Non Municipal Non-Maturity Deposits
794,808
673,502
Municipal Non-Maturity Deposits
129,839
116,255
Certificates of Deposit
79,232
96,476
Securities Sold Under Agreements to Repurchase
109,606
103,523
Junior Subordinated Debentures
20,620
20,620
Stockholders' Equity
100,646
96,115
Profitability and Efficiency
Net Interest Margin
2.81
%
2.96
%
Yield on Earning Assets
3.00
3.34
Cost of Interest Bearing Liabilities
0.25
0.51
Book Value Per Share of Common Shares Outstanding
$
36.58
$
34.93
Tangible Book Value Per Share of Common Shares Outstanding
32.75
31.07
Capital and Credit
Tier 1 Core Capital to Average Assets
9.22
%
9.67
%
Common Equity Risk-Based Capital
12.19
13.05
Tier 1 Risk-Based Capital
14.80
16.08
Total Risk-Based Capital
16.05
17.34
Common Shares Outstanding
2,751,650
2,751,650
Weighted Average Number of Common Shares, Basic
2,751,650
2,751,650
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:
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.