NORTH CONWAY, N.H., Jan. 29, 2021 (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, 2020 of $5.2MM, or $1.91 per basic common share.
The Board of Directors declared a semi-annual cash dividend of $0.35 per share, payable on February 16, 2021, to common stockholders of record on February 8, 2021.
President and CEO William J. Woodward commented: “2020 was one of the most challenging years in our long history of providing community banking services to the residents of New Hampshire. The pandemic effected every part of our Bank and required us to adapt to a constantly changing environment. I am extremely proud of our entire organization in pulling together to meet our customers’ needs. For the first time in our history we finished the year with total assets in excess of $1 Billion, reflecting not only the hard work and dedication of our staff, but the confidence our customers have in Northway Bank.”
Financial Highlights
- Total assets were $1.1 billion, total loans, net, were $722 million, and total deposits were $886 million at December 31, 2020.
- Total deposits increased 21% compared to December 31, 2019 driven by an increase in non maturity deposits of $170 million or 27%.
- Total loans, net increased $93 million or 15% compared to December 31, 2019.
- Net income of $5.2 million included $2.2 million in gain on sale of residential mortgage loans.
- In 2020, the Bank processed and closed 705 Small Business Administration Paycheck Protection Program loans in the aggregate amount of $71 million. As of December 31, 2020, $46 million remained outstanding.
- In 2020, the Bank originated 693 residential first mortgage loans totaling $145 million, the most ever originated by the Bank.
- In response to the COVID-19 pandemic, the Bank granted short term payment deferments on $132 million of commercial loans under Section 4013 of the CARES Act. As of December 31, 2020, only $12 million were still in deferment.
- Nonperforming loans as a percentage of total loans stood at 0.42% at December 31, 2020 compared to 0.49% at December 31, 2019.
- Regulatory capital ratios at December 31, 2020 were 9.67% Tier 1 Core Capital to Average Assets, 17.33% Total Risk-Based Capital, and 13.04% Common Equity Risk-Based Capital.
- The market price of our common stock, as of January 28, 2021, was $28.40.
| Northway Financial, Inc. | |||||||||||||
| Selected Financial Highlights | |||||||||||||
| (Unaudited) | |||||||||||||
| (Dollars in thousands, except per share data) | Three Months Ended | Year Ended | |||||||||||
| 12/31/2020 | 12/31/2019 | 12/31/2020 | 12/31/2019 | ||||||||||
| Interest and Dividend Income | $ | 8,338 | $ | 8,231 | $ | 32,007 | $ | 34,643 | |||||
| Interest Expense | 796 | 1,084 | 3,731 | 5,269 | |||||||||
| Net Interest and Dividend Income | 7,542 | 7,147 | 28,276 | 29,374 | |||||||||
| Provision for Loan Losses | 750 | – | 2,250 | 210 | |||||||||
| All Other Noninterest Income | 1,908 | 1,620 | 7,754 | 6,652 | |||||||||
| Realized Gains on Securities Available-for-Sale, net | – | – | 1,175 | 827 | |||||||||
| Noninterest Expense | 7,488 | 7,328 | 29,896 | 29,209 | |||||||||
| Net Income Before Gains on Marketable Equity Securities | 1,212 | 1,439 | 5,059 | 7,434 | |||||||||
| Gain on Marketable Equity Securities Sold | 373 | 1,319 | 399 | 2,243 | |||||||||
| Unrealized Gain (Loss) on Marketable Equity Securities Held | 1,678 | (576 | ) | 589 | 1,502 | ||||||||
| Income before Income Tax Expense | 3,263 | 2,182 | 6,047 | 11,179 | |||||||||
| Income Tax Expense | 557 | 279 | 803 | 1,895 | |||||||||
| Net Income | $ | 2,706 | $ | 1,903 | $ | 5,244 | $ | 9,284 | |||||
| Net Income Available to Common Stockholders | $ | 2,706 | $ | 1,903 | $ | 5,244 | $ | 9,284 | |||||
| Earnings per Common Share, Basic | $ | 0.99 | $ | 0.69 | $ | 1.91 | $ | 3.37 | |||||
| 12/31/20 | 12/31/2019 | |||||
| Balance Sheet | ||||||
| Total Assets | $ | 1,119,552 | $ | 916,995 | ||
| Cash and Due from Banks and Interest-Bearing Deposits | 167,812 | 78,639 | ||||
| Securities Available-for-Sale, at Fair Value | 172,117 | 160,484 | ||||
| Marketable Equity Securities, at Fair Value | 17,901 | 11,899 | ||||
| Loans Held-for-Sale | 237 | 1,424 | ||||
| Loans, Net | 722,354 | 628,797 | ||||
| Total Liabilities | 1,023,437 | 825,616 | ||||
| Retail Non-Maturity Deposits | 673,502 | 508,724 | ||||
| Municipal Non-Maturity Deposits | 116,255 | 110,602 | ||||
| Certificates of Deposit | 96,476 | 111,771 | ||||
| Securities Sold Under Agreements to Repurchase | 103,523 | 64,329 | ||||
| Junior Subordinated Debentures | 20,620 | 20,620 | ||||
| Stockholders’ Equity | 96,115 | 91,379 | ||||
| Profitability and Efficiency | ||||||
| Net Interest Margin | 2.96 | % | 3.45 | % | ||
| Yield on Earning Assets | 3.34 | 4.05 | ||||
| Cost of Interest Bearing Liabilities | 0.51 | 0.77 | ||||
| Book Value Per Share of Common Shares Outstanding | $ | 34.93 | $ | 33.21 | ||
| Tangible Book Value Per Share of Common Shares Outstanding | 31.07 | 29.60 | ||||
| Capital and Credit | ||||||
| Tier 1 Core Capital to Average Assets | 9.67 | % | 11.43 | % | ||
| Common Equity Risk-Based Capital | 13.04 | 13.61 | ||||
| Tier 1 Risk-Based Capital | 16.08 | 16.89 | ||||
| Total Risk-Based Capital | 17.33 | 18.10 | ||||
| Common Shares Outstanding | 2,751,650 | 2,751,650 | ||||
| Weighted Average Number of Common Shares, Basic | 2,751,650 | 2,751,650 | ||||
| Allowance for Loan Losses as a % of Nonperforming Loans | 311 | % | 230 | % | ||
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 16 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