Northway Financial, Inc. Announces First Quarter Earnings

NORTH CONWAY, N.H., April 29, 2022 (GLOBE NEWSWIRE) — Northway Financial, Inc. (the “Company”) (OTCQB: NWYF), the parent company of Northway Bank (the “Bank”), today reported a net loss for the quarter ended March 31, 2022 of $0.1MM, or $(0.05) per basic common share.

President and CEO William J. Woodward commented: In the first quarter of 2022 we were able to continue the momentum of the prior year in terms of loan and deposit growth. Loans grew $27 million or 3% and non municipal non-maturity deposits grew $31 million or 4% when compared to December 31, 2021. The turbulent and uncertain times that we are in, did negatively impact our reported net income, as the value of our equity security portfolio moved in tandem with the general stock market. Net income, excluding the change in value of our equity portfolio, would have been $659 thousand. Our loan and deposit growth are reflective of the Bank’s commitment to its customers.

Financial Highlights

• Total assets were $1.2 billion, total loans, net, were $815 million, and total deposits were $1 billion at March 31, 2022.
• The loan portfolio increased $52 million, or 7%, compared to March 31, 2021.
• Residential mortgage loan balances increased $74 million, or 37%, compared to March 31, 2021.
• Commercial Real Estate loans increased $45 million, or 13%, compared to March 31, 2021.
• As of March 31, 2022, $95 million, or 94%, 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.
• Cash and Due from Banks and Interest-Bearing Deposits decreased $107 million, or 66%, compared to March 31, 2021.
• Securities Available-for-Sale, at Fair Value increased $95 million, or 50%, compared to March 31, 2021.
• Net Income was impacted by a negative $1.2 million change in Fair Value of Marketable Equity Securities from December 31, 2021.
• Total deposits increased 7% compared to March 31, 2021, driven by a 9% increase in total non-maturity deposits of $80 million.
• The cost of interest bearing liabilities was 0.20% compared to 0.33% at March 31, 2021.
• Nonperforming loans as a percentage of total loans stood at 0.27% at March 31, 2022 compared to 0.35% at March 31, 2021.
• The Bank’s regulatory capital ratios at March 31, 2022 exceeded all well-capitalized ratios as defined under FDIC’s prompt corrective action rules.
• The market price of our common stock, as of April 28, 2022, was $31.45.

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.