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

Rhea-AI Summary

Northway Financial, Inc. (OTCQB: NWYF) reported a net income of $5.2 million, or $1.91 per share, for the year ended December 31, 2020. Total assets reached $1.1 billion with total deposits increasing by 21% year-over-year. The company originated a record $145 million in residential first mortgage loans and processed 705 PPP loans totaling $71 million. A semi-annual cash dividend of $0.35 per share was declared. Regulatory capital ratios remained solid, with nonperforming loans decreasing to 0.42% of total loans.

Positive

• Net income of $5.2 million for FY 2020, $1.91 per share.
• Total assets increased to $1.1 billion.
• Total deposits rose 21% year-over-year.
• Originated $145 million in residential first mortgage loans, a record.
• Processed 705 PPP loans totaling $71 million.

Negative

• Net income decreased from $9.3 million in FY 2019 to $5.2 million in FY 2020.
• Net interest margin fell from 3.45% in 2019 to 2.96% in 2020.
• Provision for loan losses increased to $2.25 million in FY 2020 from $210,000 in FY 2019.

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.

FAQ

What were Northway Financial's earnings for the year ended December 31, 2020?

Northway Financial reported net income of $5.2 million, or $1.91 per share, for 2020.

How much did Northway Financial's total assets grow in 2020?

Total assets increased to $1.1 billion as of December 31, 2020.

What dividend did Northway Financial declare in 2021?

A semi-annual cash dividend of $0.35 per share was declared, payable on February 16, 2021.

How did the COVID-19 pandemic affect Northway Financial's performance?

The pandemic led to significant adaptations, but Northway Financial still achieved a record in mortgage loan originations and a 21% increase in total deposits.

What is the current market price for Northway Financial's stock (NWYF)?

As of January 28, 2021, the market price for NWYF was $28.40.