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Northway Financial, Inc. Announces 2021 Earnings and Declares Semi-Annual Dividend

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: Contact:
Gary Laurash
Chief Financial Officer
603-326-7377

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