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

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NORTH CONWAY, N.H., July 27, 2018 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the "Company") (OTCQB:NWYF), the parent company of Northway Bank (the "Bank"), today reported net income for the quarter ended June 30, 2018 of $1.1MM, or $0.39 per basic common share.  Year-to-date, the Company reported net income of $2.2MM, or $0.82 per basic common share.

The Board of Directors has declared a semi-annual cash dividend of $0.35 per share, payable on August 13, 2018, to common stockholders of record on August 6, 2018.  The payment of this dividend results in a 43% payout ratio based on net income available to common stockholders.  Based on a share price of $32.30 on July 25, 2018, this semi-annual dividend, when annualized, results in a dividend yield of approximately 2.1%. The Company's common stock is available through brokers and is quoted on the OTCQB under the stock symbol "NWYF". 

Financial Highlights

  • Total assets were $944MM, total loans, net, were $621MM, and total deposits were $717MM at June 30, 2018.
  • Loans, net, increased $56MM from December 31, 2017, which is the result of the implementation of our organic growth strategy. 
  • Net income was $2.2MM for the six months ended June 30, 2018.
  • Net income for the six months ending June 30, 2018 was $1.5MM less than the same period last year, primarily due to a lower level of security gains and an increase in noninterest expense related to the hiring of additional lenders to support our growth strategy. 
  • The net interest margin at June 30, 2018 was 3.36%.
  • The yield on earning assets was 3.85% and the cost of interest-bearing liabilities was 0.61%, for the six months ended June 30, 2018.
  • For the six months ended June 30, 2018, Return on Average Assets was 0.49% and Return on Average Equity was 5.77%
  • Regulatory capital ratios at June 30, 2018 were 10.22% Tier 1 Leverage, 16.13% Total Risk Based Capital, and 11.86% Common Equity Tier 1.
  • Nonperforming loans as a percentage of total loans stood at 0.56% at June 30, 2018.
 
Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)
 
(Dollars in thousands, except per share data) Three Months Ended   Six Months Ended
  6/30/2018   6/30/2017   6/30/2018   6/30/2017
               
Interest and Dividend Income $ 8,321     $ 7,725   $ 16,347   $ 15,252
Interest Expense   1,261       801     2,134     1,567
Net Interest and Dividend Income   7,060       6,924     14,213     13,685
Provision for Loan Losses   -       -     -     -
All Other Noninterest Income   1,258       1,458     2,429     3,027
Noninterest Expense   7,029       6,299     14,381     12,829
Net Income Before Securities Gains   1,289       2,083     2,261     3,883
Securities Gains, Net   (118 )     697     187     1,179
Net Income Before Taxes   1,171       2,780     2,448     5,062
Provision for Income Tax   110       745     204     1,349
Net Income $ 1,061     $ 2,035   $ 2,244   $ 3,713
Net Income Available to Common Stockholders $ 1,061     $ 2,035   $ 2,244   $ 3,713
Earnings per Common Share, Basic $ 0.39     $ 0.74   $ 0.82   $ 1.35
               


             
    6/30/2018   12/31/2017   6/30/2017  
                     
Balance Sheet  
Total Assets   $ 944,433   $ 884,084   $ 883,476  
Cash and Due from Banks and Interest-Bearing Deposits     20,065     25,091     20,116  
Securities Available-for-Sale, at Fair Value     262,615     258,109     265,107  
Loans, Net     620,852     565,294     561,767  
Total Liabilities     866,482     802,895     813,169  
Retail non-maturity deposits     501,537     503,391     503,039  
Municipal non-maturity deposits     106,408     108,918     101,669  
Certificates of deposit     109,037     110,446     124,672  
Federal Home Loan Bank Advances     59,987     -     8,000  
Securities Sold Under Agreements to Repurchase     60,545     53,380     49,798  
Junior Subordinated Debentures     20,620     20,620     20,620  
Stockholders' Equity     77,951     81,189     78,307  
Profitability and Efficiency      
Net Interest Margin     3.36 %   3.48 %   3.45 %
Yield on Earning Assets     3.85     3.84     3.83  
Cost of Interest Bearing Liabilities     0.61     0.45     0.47  
Book Value Per Share of Common Shares Outstanding   $ 28.33   $ 29.51   $ 28.46  
Tangible Book Value Per Share of Common Shares Outstanding     24.71     25.88     24.83  
Capital and Credit              
Tier 1 Core Capital to Average Assets     10.22 %   10.45 %   10.34 %
Common Equity Risk-Based Capital     11.86     12.08     11.92  
Tier 1 Risk-Based Capital     15.00     15.35     15.24  
Total Risk-Based Capital     16.13     16.66     16.54  
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     0.49 %   0.82 %   0.85 %
Return on Average Equity     5.77     9.32     9.82  
Nonperforming Loans as a % of Total Loans     0.56     0.52     0.56  
Allowance for Loan Losses as a % of Nonperforming Loans     219     242     234  
                     

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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