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”) (OTCQB: 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: Contact:
Gary Laurash
Chief Financial Officer
603-326-7377