Northway Financial, Inc. Announces 2020 Earnings and Declares Semi-Annual Dividend

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