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Northway Financial, Inc. Announces 2019 Earnings and Declares Semi-Annual Dividend

NORTH CONWAY, N.H., Jan. 31, 2020 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the “Company”) (NWYF), the parent company of Northway Bank (the “Bank”), today reported record net income for the year ended December 31, 2019 of $9.3MM, or $3.37 per basic common share, compared to $2.9MM, or $1.07 per basic common share for the year ended December 31, 2018.

The Board of Directors has declared a semi-annual cash dividend of $0.35 per share, payable on February 18, 2020, to common stockholders of record on February 10, 2020. William J. Woodward, President and Chief Executive Officer, stated, “We are continuing our current level of dividend, as we believe our investment in growth will continue to enhance shareholder value.”

Financial Highlights

  • Included in our net income of $9.3MM for the year ended December 31, 2019 is $2.3MM of unrealized equity security gains, which accounting standards now require us to report in our income statement.

  • Total assets were $916MM; total loans, net, were $629MM; and total deposits were $731MM at December 31, 2019.

  • Loans, net, increased $1MM from December 31, 2018; $34MM of portfolio residential fixed rate loans were sold during 2019.

  • In addition to the sale of $34MM of portfolio residential fixed rate loans, the Bank sold $36MM of newly originated fixed rate residential loans and recorded total gain on loan sales of $1.2MM.

  • The net interest margin at December 31, 2019 was 3.45% up from 3.36% from December 31, 2018.

  • The yield on earning assets was 4.05% and the cost of interest-bearing liabilities was 0.77%, for the year ended December 31, 2019.

  • For the year ended December 31, 2019, return on average assets was 1.01% and return on average equity was 10.72%

  • Regulatory capital ratios at December 31, 2019 were 11.43% Tier 1 Core Capital to Average Assets, 18.10% Total Risk-Based Capital, and 13.61% Common Equity Risk-Based Capital.

  • Nonperforming loans as a percentage of total loans stood at .49% at December 31, 2019.

  • The market price of our common stock, as of January 25, 2020, was $34.32.

Northway Financial, Inc.

Selected Financial Highlights

(Unaudited)

(Dollars in thousands, except per share data)

Three Months Ended

Year Ended

12/31/19

12/31/18

12/31/19

12/31/18

Interest and Dividend Income

$

8,231

$

9,259

$

34,643

$

34,364

Interest Expense

1,084

1,530

5,269

4,986

Net Interest and Dividend Income

7,147

7,729

29,374

29,378

Provision for Loan Losses

-

195

210

390

All Other Noninterest Income

1,620

936

6,652

4,662

Realized Gains on Securities Available-for-Sale, net

-

-

827

40

Gain on Marketable Equity Securities Sold, net

732

54

1,418

550

Noninterest Expense

7,329

7,554

29,210

29,022

Net Income Before Gains on Marketable Equity Securities, net

2,170

970

8,851

5,218

Unrealized Gain (Loss) on Marketable Equity Securities Held, net

11

(2,464

)

2,327

(2,498

)

Income (Loss) before Income Tax Expense

2,181

(1,494

)

11,178

2,720

Income Tax Expense (Benefit)

278

(256

)

1,894

(218

)

Net Income (Loss)

$

1,903

$

(1,238

)

$

9,284

$

2,938

Net Income (Loss) Available to Common Stockholders

$

1,903

$

(1,238

)

$

9,284

$

2,938

Earnings per Common Share, Basic

$

0.69

$

(0.45

)

$

3.37

$

1.07


12/31/19

12/31/18

Balance Sheet

Total Assets

$

916,283

$

926,898

Cash and Due from Banks and Interest-Bearing Deposits

78,639

18,132

Securities Available-for-Sale, at Fair Value

160,484

225,409

Marketable Equity Securities, at Fair Value

11,899

17,978

Loans, Net, including loans held for sale

628,797

627,915

Total Liabilities

824,904

847,480

Retail non-maturity deposits

508,724

494,793

Municipal non-maturity deposits

110,602

101,746

Certificates of deposit

111,771

128,993

Federal Home Loan Bank Advances

-

13,848

Securities Sold Under Agreements to Repurchase

64,329

79,340

Junior Subordinated Debentures

20,620

20,620

Stockholders' Equity

91,379

79,418

Profitability and Efficiency

Net Interest Margin

3.45

%

3.36

%

Yield on Earning Assets

4.05

3.91

Cost of Interest Bearing Liabilities

0.77

0.70

Book Value Per Share of Common Shares Outstanding

$

33.21

$

28.86

Tangible Book Value Per Share of Common Shares Outstanding

29.60

25.25

Capital and Credit

Tier 1 Core Capital to Average Assets

11.43

%

9.93

%

Common Equity Risk-Based Capital

13.61

12.23

Tier 1 Risk-Based Capital

16.89

15.44

Total Risk-Based Capital

18.10

16.60

Common Shares Outstanding

2,751,650

2,751,650

Weighted Average Number of Common Shares, Basic

2,751,650

2,751,650

Nonperforming Loans as a % of Total Loans

0.49

0.34

Allowance for Loan Losses as a % of Nonperforming Loans

230

323

Note: The 2019 Annual Report will be provided to shareholders in conjunction with the distribution of the proxy materials for the 2020 Annual Meeting.

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. These statements are based upon the current beliefs and expectations of the Company’s management 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