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NORTH CONWAY, N.H., Feb. 01, 2019 (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, 2018 of $2.9MM, or $1.07 per basic common share, compared to $7.3MM, or $2.64 per basic common share for the year ended December 31, 2017.
The Board of Directors has declared a semi-annual cash dividend of $0.35 per share, payable on February 19, 2019, to common stockholders of record on February 11, 2019. William J. Woodward President and Chief Executive Officer stated, “We are continuing our current level of dividend as we believe our investment in loan growth will continue to generate revenue for years to come.”
In 2018, the Bank adopted ASU 2016-01, “Financial Instruments – overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The adoption of this ASU requires equity investments to be measured at fair value with changes in fair value recognized in net income. With the current volatility in the stock market, net income for 2018 was negatively impacted by a $1.8MM unrealized loss on equity securities, net of taxes.
The investment we made to support loan growth has begun to pay dividends as we saw interest and dividend income improve $3.4MM compared to the prior year primarily as a result of an increase in average loan balances of $67MM, an increase of 12%, partially offset by an increase in noninterest expense related to the hiring of additional resources to support our growth strategy.
|Northway Financial, Inc.|
|Selected Financial Highlights|
|(Dollars in thousands, except per share data)||Three Months Ended||Year Ended|
|Interest and Dividend Income||$||9,259||$||7,878||$||34,364||$||30,920|
|Net Interest and Dividend Income||7,729||7,138||29,378||27,886|
|Provision for Loan Losses||195||-||390||-|
|All Other Noninterest Income||938||1,055||4,662||5,478|
|Net Income Before Securities Gains||918||1,109||4,628||7,022|
|Realized Securities Gains, Net||54||1,102||590||2,704|
|Unrealized Securities (Losses) Gains, Net||(2,464||)||-||(2,498||)||-|
|Net Income Before Taxes||(1,546||)||1,109||2,130||7,022|
|Provision for Income Tax||(255||)||492||(218||)||2,448|
|Net Income Available to Common Stockholders||$||(1,237||)||$||1,719||$||2,938||$||7,278|
|Earnings per Common Share, Basic||$||(0.45||)||$||0.62||$||1.07||$||2.64|
|Cash and Due from Banks and Interest-Bearing Deposits||18,132||25,091|
|Securities Available-for-Sale, at Fair Value||243,387||258,109|
|Retail non-maturity deposits||494,793||503,391|
|Municipal non-maturity deposits||101,746||108,918|
|Certificates of deposit||128,993||110,446|
|Federal Home Loan Bank Advances||13,848||-|
|Securities Sold Under Agreements to Repurchase||79,340||53,380|
|Junior Subordinated Debentures||20,620||20,620|
|Profitability and Efficiency|
|Net Interest Margin||3.36||%||3.48||%|
|Yield on Earning Assets||3.91||3.84|
|Cost of Interest Bearing Liabilities||0.70||0.45|
|Book Value Per Share of Common Shares Outstanding||$||28.86||$||29.51|
|Tangible Book Value Per Share of Common Shares Outstanding||25.25||25.88|
|Capital and Credit|
|Tier 1 Core Capital to Average Assets||9.83||%||10.45||%|
|Common Equity Risk-Based Capital||12.08||12.08|
|Tier 1 Risk-Based Capital||15.27||15.35|
|Total Risk-Based Capital||16.44||16.66|
|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||0.31||%||0.82||%|
|Return on Average Equity||3.75||9.32|
|Nonperforming Loans as a % of Total Loans||0.35||0.52|
|Allowance for Loan Losses as a % of Nonperforming Loans||323||242|
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.
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