Northway Financial, Inc. Announces Third Quarter Earnings - Northway Finl (OTC:NWYF)

NORTH CONWAY, N.H., Oct. 26, 2018 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the "Company") NWYF, the parent company of Northway Bank (the "Bank"), today reported net income for the quarter ended September 30, 2018 of $2.7MM, or $0.98 per basic common share. Year-to-date, the Company reported net income of $4.9MM, or $1.80 per basic common share.

Financial Highlights

Total assets were $969MM, total loans, net, were $664MM, and total deposits were $780MM at September 30, 2018.
Loans, net, increased $98MM, or 17.4%, from December 31, 2017, which is the result of the implementation of our organic growth strategy.
Net interest income increased $0.9MM for the nine months ended September 30, 2018 when compared to the same period last year.
Net income for the nine months ending September 30, 2018 was $0.6MM less than the same period last year, primarily due to an increase in noninterest expense related to the hiring of additional lenders to support our growth strategy.
The net interest margin at September 30, 2018 was 3.35%.
The yield on earning assets was 3.86% and the cost of interest-bearing liabilities was 0.65%, for the nine months ended September 30, 2018.
For the nine months ended September 30, 2018, Return on Average Assets was 0.71% and Return on Average Equity was 8.42%
Regulatory capital ratios at September 30, 2018 were 10.13% Tier 1 Leverage, 15.93% Total Risk Based Capital, and 11.78 % Common Equity Tier 1.
Nonperforming loans as a percentage of total loans stood at 0.52% at September 30, 2018.
The market price of our common stock, as of October 24, 2018, was $31.80.


Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)

(Dollars in thousands, except per share data)	Three Months Ended				Nine Months Ended
	9/30/2018		9/30/2017		9/30/2018		9/30/2017

Interest and Dividend Income	$	8,758	$	7,790	$	25,105	$	23,042
Interest Expense		1,322		727		3,456		2,294
Net Interest and Dividend Income		7,436		7,063		21,649		20,748
Provision for Loan Losses		195		-		195		-
All Other Noninterest Income		1,295		1,396		3,724		4,423
Noninterest Expense		7,087		6,429		21,468		19,258
Net Income Before Securities Gains		1,449		2,030		3,710		5,913
Securities Gains, Net		1,371		423		1,558		1,602
Net Income Before Taxes		2,820		2,453		5,268		7,515
Provision for Income Tax		120		607		324		1,956
Net Income	$	2,700	$	1,846	$	4,944	$	5,559
Net Income Available to Common Stockholders	$	2,700	$	1,846	$	4,944	$	5,559
Earnings per Common Share, Basic	$	0.98	$	0.67	$	1.80	$	2.02

	9/30/2018			12/31/2017			9/30/2017

Balance Sheet
Total Assets	$	969,117		$	884,084		$	882,955
Cash and Due from Banks and Interest-Bearing Deposits		18,713			25,091			14,810
Securities Available-for-Sale, at Fair Value		243,106			258,109			262,855
Loans, Net		663,770			565,294			569,304
Total Liabilities		891,237			802,895			803,326
Retail non-maturity deposits		511,753			503,391			509,430
Municipal non-maturity deposits		92,707			108,918			86,138
Certificates of deposit		175,830			110,446			114,455
Federal Home Loan Bank Advances		23,396			-			17,700
Securities Sold Under Agreements to Repurchase		57,640			53,380			49,208
Junior Subordinated Debentures		20,620			20,620			20,620
Stockholders' Equity		77,880			81,189			79,629
Profitability and Efficiency
Net Interest Margin		3.35	%		3.48	%		3.47	%
Yield on Earning Assets		3.86			3.84			3.83
Cost of Interest Bearing Liabilities		0.65			0.45			0.46
Book Value Per Share of Common Shares Outstanding	$	28.30		$	29.51		$	28.94
Tangible Book Value Per Share of Common Shares Outstanding		24.68			25.88			25.31
Capital and Credit
Tier 1 Core Capital to Average Assets		10.13	%		10.45	%		10.41	%
Common Equity Risk-Based Capital		11.78			12.08			11.79
Tier 1 Risk-Based Capital		14.83			15.35			15.03
Total Risk-Based Capital		15.93			16.66			16.36
Common Shares Outstanding		2,751,650			2,751,650			2,751,650
Weighted Average Number of Common Shares, Basic		2,751,650			2,751,650			2,751,650
Return on Average Assets		0.71	%		0.82	%		0.84	%
Return on Average Equity		8.42			9.32			9.62
Nonperforming Loans as a % of Total Loans		0.52			0.52			0.52
Allowance for Loan Losses as a % of Nonperforming Loans		235			242			247

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

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