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Press Release

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

Company Release - 7/26/2019 8:47 AM ET

NORTH CONWAY, N.H., July 26, 2019 (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, 2019 of $1.7MM, or $0.63 per basic common share. Year-to-date, the Company reported net income of $5.0MM, or $1.83 per basic common share.

The Board of Directors has declared a semi-annual cash dividend of $0.35 per share, payable on August 12, 2019, to common stockholders of record on August 5, 2019.  The payment of this dividend results in a 55% payout ratio based on net income available to common stockholders.  Based on a share price of $30.06 on July 19, 2019, this semi-annual dividend, when annualized, results in a dividend yield of approximately 2.33%. 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 $934MM, total loans, net, were $644MM, and total deposits were $748MM at June 30, 2019.
  • Loans, net, including loans held for sale, increased $19.4MM from December 31, 2018 to $648MM and increased $26.2MM from June 30, 2018.
  • In April 2019, the Bank sold $17.3MM in residential loans at a gain of $372M.
  • The 2018 accounting change requiring unrealized gains/losses on equity securities to be recognized in the income statement accounted for $2.2MM of pretax income as of June 30, 2019.
  • Excluding marketable equity securities gains, both realized and unrealized, year to date pretax net income was $3.5MM, a 53% increase compared to the same period in 2018.
  • The net interest margin at June 30, 2019 was 3.44%.
  • The yield on earning assets was 4.11% and the cost of interest-bearing liabilities was 0.84%, for the quarter ended June 30, 2019.
  • For the quarter ended June 30, 2019, the trailing twelve months Return on Average Assets was 0.70% and Return on Average Equity was 7.81%.
  • Regulatory capital ratios at June 30, 2019 were 10.92% Tier 1 Core Capital to Average Assets, 16.77% Total Risk-Based Capital, and 12.47% Common Equity Risk-Based Capital.
  • Nonperforming loans as a percentage of total loans stood at 0.53% at June 30, 2019.
  • The market price of our common stock, as of July 19, 2019, was $30.06.
Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)
        
(Dollars in thousands, except per share data)Three Months Ended Six Months Ended
 6/30/2019 6/30/2018 6/30/2019 6/30/2018
        
Interest and Dividend Income$8,806 $8,321  $17,692 $16,347 
Interest Expense 1,475  1,261   2,940  2,134 
Net Interest and Dividend Income 7,331  7,060   14,752  14,213 
Provision for Loan Losses 210  -   210  - 
All Other Noninterest Income 1,717  1,258   3,275  2,429 
Realized Gains on Securities Available-for-Sale, net 388  -   545  - 
Noninterest Expense 7,651  7,029   14,892  14,381 
Net Income Before Gains on Marketable Equity Securities, net 1,575  1,289   3,470  2,261 
Gain on Marketable Equity Securities Sold, net 225  115   498  255 
Unrealized Gain (Loss) on Marketable Equity Securities Held, net 238  (233)  2,164  (1,124)
Income before Income Tax Expense 2,038  1,171   6,132  1,392 
Income Tax Expense (Benefit) 294  110   1,092  (84)
Net Income$1,744 $1,061  $5,040 $1,476 
Net Income Available to Common Shareholders$1,744 $1,061  $5,040 $1,476 
Earnings per Common Share, Basic$0.63 $0.39  $1.83 $0.54 


  6/30/2019 12/31/2018 6/30/2018 
        
Balance Sheet       
Total Assets $933,770 $926,898 $944,440 
Cash and Due from Banks and Interest-Bearing Deposits  36,399  18,132  20,065 
Securities Available-for-Sale, at Fair Value  195,173  225,409  242,643 
Marketable Equity Securities, at Fair Value  17,611  17,978  19,972 
Loans, Net, including loans held for sale  647,733  628,343  621,581 
Total Liabilities  846,020  847,480  866,482 
Retail Non-Maturity Deposits  494,974  494,793  501,537 
Municipal Non-Maturity Deposits  98,764  101,746  106,408 
Certificates of Deposit  154,390  128,993  109,037 
Federal Home Loan Bank Advances  -  13,848  59,987 
Securities Sold Under Agreements to Repurchase  67,430  79,340  60,545 
Junior Subordinated Debentures  20,620  20,620  20,620 
Shareholders' Equity  87,750  79,418  77,958 
Profitability and Efficiency       
Net Interest Margin  3.44% 3.36% 3.36%
Yield on Earning Assets  4.11  3.91  3.85 
Cost of Interest Bearing Liabilities  0.84  0.70  0.61 
Book Value Per Share of Common Shares Outstanding $31.89 $28.86 $28.33 
Tangible Book Value Per Share of Common Shares Outstanding  28.28  25.25  24.71 
Capital and Credit       
Tier 1 Core Capital to Average Assets  10.92% 9.83% 10.22%
Common Equity Risk-Based Capital  12.47  12.08  11.86 
Tier 1 Risk-Based Capital  15.60  15.27  15.00 
Total Risk-Based Capital  16.77  16.44  16.13 
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 
Nonperforming Loans as a % of Total Loans  0.53  0.34  0.56 
Allowance for Loan Losses as a % of Nonperforming Loans  216  323  219 

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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Source: Northway Financial Inc.