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

Rhea-AI Summary

Northway Financial, Inc. (OTCQB: NWYF) reported record net income of $9.3 million or $3.38 per share for the year ending December 31, 2021. The Bank expanded its loan portfolio by 9% and increased total deposits by 13%, with assets totaling $1.2 billion. A semi-annual dividend of $0.35 per share was declared. Notably, 90% of Paycheck Protection Program loans were either forgiven or repaid, and nonperforming loans dropped to 0.26%. The bank's tangible book value grew by 5% to $32.75.

Positive

• Record net income of $9.3 million for 2021.
• Loan portfolio increased by 9% compared to 2020.
• Total deposits rose by 13%, reaching $1 billion.
• Tangible book value per share grew by 5% to $32.75.
• 90% of Paycheck Protection Program loans were forgiven or repaid.

Negative

• Net interest margin decreased to 2.81% from 2.96% in 2020.
• Noninterest expense increased to $30.1 million from $29.9 million in 2020.

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.

FAQ

What were Northway Financial's earnings for 2021?

Northway Financial reported net income of $9.3 million for the year ended December 31, 2021.

How much did Northway Financial increase its loan portfolio in 2021?

Northway Financial's loan portfolio increased by 9% in 2021.

What is the dividend declared by Northway Financial?

Northway Financial declared a semi-annual cash dividend of $0.35 per common share.

What was the tangible book value per share for Northway Financial at year-end 2021?

The tangible book value per share for Northway Financial as of December 31, 2021, was $32.75.

How did Northway Financial's total deposits change in 2021?

Total deposits for Northway Financial increased by 13%, reaching $1 billion by the end of 2021.