Northway Financial, Inc. Announces Third Quarter Earnings

NORTH CONWAY, N.H., Oct. 26, 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 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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