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Northway Financial, Inc. Announces 2017 Earnings and an Increase in the Semi-Annual Dividend


NORTH CONWAY, N.H., Feb. 02, 2018 (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, 2017 of $7.3MM, or $2.64 per basic common share, compared to $4.0MM, or $1.46 per basic common share for the year ended December 31, 2016.

President and Chief Executive Officer William J. Woodward stated, "The Company had a very strong year, net income was very strong, stock price was up significantly, our levels of nonperforming loans are improved and in line with peers. As a result of this year's performance, the Board of Directors has declared a semi-annual cash dividend of $0.35 per share, payable on February 20, 2018, to common stockholders of record on February 12, 2018.  The dividend is being increased from $0.32 per share to $0.35 per share, a 9.4% increase. The 2017 total dividend payment of $0.67 per share results in a 25% payout ratio based on net income available to common stockholders. Based on a share price of $31.08 on January 31, 2018, this semi-annual dividend, when annualized, results in a dividend yield of approximately 2.2%."

Mr. Woodward went on to comment, "We are very pleased with the performance of the Company and we encourage you to read the Financial Highlights.  We look forward to providing you more detail in our 2017 Annual Report."   

The Company's common stock is available through brokers and is quoted on the OTCQB under the stock symbol "NWYF".

Financial Highlights      

  • For the year ended December 31, 2017 Return on Average Assets was 0.82% and Return on Average Equity was 9.32%.
  • Total assets were $884MM, net loans were $565MM, and total deposits were $723MM at December 31, 2017.
  • Non-Maturity Deposits including Customer Repo Accounts increased $34MM or 5% when compared to December 31, 2016.
  • Net interest margin improved to 3.48% compared to 3.17% at December 31, 2016 with the yield on earning assets increasing 14 basis points to 3.84% and the cost of interest-bearing liabilities decreasing 20 basis points to .45%.
  • Noninterest expense was reduced $3.0MM year-over-year due to the one-time expense related to the termination of the defined benefit plan in 2016.
  • Regulatory capital ratios at December 31, 2017 were 10.45% Tier 1 Leverage, 16.66% Total Risk Based Capital, and 12.08% Common Equity Tier 1.
  • Nonperforming loans as a percentage of total loans stood at 0.52% at December 31, 2017 compared to 0.60% at December 31, 2016.
  • The market price of our common stock increased to $31.08 as of January 31, 2018, a 16% improvement from the end of 2016.
Northway Financial, Inc.
Selected Financial Highlights
(Dollars in thousands, except per share data)   Year Ended
    12/31/2017   12/31/2016
Interest and Dividend Income   $ 30,920   $ 30,507
Interest Expense     3,034     4,596
Net Interest and Dividend Income     27,886     25,911
Provision for Loan Losses     -     -
All Other Noninterest Income     5,478     5,691
Noninterest Expense     26,342     29,302
Net Income Before Securities Gains     7,022     2,300
Securities Gains, Net     2,704     2,661
Net Income Before Taxes     9,726     4,961
Provision for Income Tax     2,448     946
Net Income   $ 7,278   $ 4,015
Net Income Available to Common Stockholders   $ 7,278   $ 4,015
Earnings per Common Share, Basic   $ 2.64   $ 1.46

    12/31/2017   12/31/2016  
Balance Sheet          
Total Assets   $ 884,084   $ 889,598  
Cash and Due from Banks and Interest-Bearing Deposits     25,091     44,854  
Securities Available-for-Sale, at Fair Value     258,109     261,008  
Loans, Net     565,294     545,594  
Total Deposits     722,755     737,732  
Securities Sold Under Agreements to Repurchase     53,380     50,528  
Junior Subordinated Debentures     20,620     20,620  
Stockholders' Equity     81,189     74,403  
Profitability and Efficiency              
Net Interest Margin     3.48 %   3.17 %
Yield on Earning Assets     3.84     3.70  
Cost of Interest Bearing Liabilities     0.45     0.65  
Book Value Per Share of Common Shares Outstanding   $ 29.51   $ 27.04  
Tangible Book Value Per Share of Common Shares Outstanding     25.88     23.40  
Capital and Credit              
Tier 1 Core Capital to Average Assets     10.45 %   9.83 %
Common Equity Risk-Based Capital     12.08     11.61  
Tier 1 Risk-Based Capital     15.35     14.93  
Total Risk-Based Capital     16.66     16.23  
Common Shares Outstanding     2,751,650     2,751,650  
Weighted Average Number of Common Shares, Basic     2,751,650     2,751,650  
Return on Average Assets     0.82 %   0.44 %
Return on Average Equity     9.32     5.38  
Nonperforming Loans as a % of Total Loans     0.52     0.60  
Allowance for Loan Losses as a % of Nonperforming Loans     241.75     236.02  

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.

Gary Laurash
Chief Financial Officer

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