Northway Financial, Inc. Announces First Quarter Earnings

NORTH CONWAY, N.H., May 04, 2018 -- Northway Financial, Inc. (the “Company”) (OTCQB:NWYF), the parent company of Northway Bank (the “Bank”), today reported net income for the quarter ended March 31, 2018 of $1.2MM, or $0.43 per basic common share.

Financial Highlights

Total assets were $917MM, total loans, net, were $595MM, and total deposits were $705MM at March 31, 2018.
Loans, net, increased $30MM and $49MM from December 31, 2017 and March 31, 2017, respectively.
Net income was $1.2MM.
The net interest margin at March 31, 2018 was 3.44%
The yield on earning assets was 3.85% and the cost of interest-bearing liabilities was 0.51%.
Net interest income was positively impacted by the increase in average loan balances.
The change in both Federal and State income tax rates has resulted in a decrease in tax expense of $510 thousand.
For the quarter ended March 31, 2018 Return on Average Assets was 0.53% and Return on Average Equity was 6.07%
Regulatory capital ratios at March 31, 2018 were 10.35% Tier 1 Leverage, 16.67% Total Risk Based Capital, and 12.17% Common Equity Tier 1.
Nonperforming loans as a percentage of total loans stood at 0.56% at March 31, 2018.
The market price of our common stock, as of May 1, 2018, was $30.80.


Northway Financial, Inc.
Selected Financial Highlights
(Unaudited)

(Dollars in thousands, except per share data)	Three Months Ended
	3/31/2018		3/31/2017

Interest and Dividend Income	$	8,026	$	7,527
Interest Expense		873		766
Net Interest and Dividend Income		7,153		6,761
Provision for Loan Losses		-		-
All Other Noninterest Income		1,336		1,569
Noninterest Expense		7,352		6,530
Net Income Before Securities Gains		1,137		1,800
Securities Gains, Net		140		482
Net Income Before Taxes		1,277		2,282
Provision for Income Tax		94		604
Net Income	$	1,183	$	1,678
Net Income Available to Common Stockholders	$	1,183	$	1,678
Earnings per Common Share, Basic	$	0.43	$	0.61


	3/31/2018			12/31/2017			3/31/2017

Balance Sheet
Total Assets	$	916,737		$	884,084		$	878,113
Cash and Due from Banks and Interest-Bearing Deposits		18,305			25,091			26,457
Securities Available-for-Sale, at Fair Value		264,676			258,109			268,378
Loans, Net		595,339			565,294			546,438
Retail non-maturity deposits		508,074			503,391			499,926
Municipal non-maturity deposits		90,681			108,918			91,885
Certificates of deposit		106,509			110,446			135,446
Federal Home Loan Bank Advances		61,585			-			8,000
Securities Sold Under Agreements to Repurchase		42,217			53,380			39,754
Junior Subordinated Debentures		20,620			20,620			20,620
Stockholders' Equity		77,903			81,189			75,786
Profitability and Efficiency
Net Interest Margin		3.44	%		3.48	%		3.43	%
Yield on Earning Assets		3.85			3.84			3.80
Cost of Interest Bearing Liabilities		0.51			0.45			0.46
Book Value Per Share of Common Shares Outstanding	$	28.31		$	29.51		$	27.54
Tangible Book Value Per Share of Common Shares Outstanding		24.69			25.88			23.91
Capital and Credit
Tier 1 Core Capital to Average Assets		10.35	%		10.45	%		10.13	%
Common Equity Risk-Based Capital		12.17			12.08			11.60
Tier 1 Risk-Based Capital		15.45			15.35			14.93
Total Risk-Based Capital		16.67			16.66			16.26
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		0.53	%		0.82	%		0.77	%
Return on Average Equity		6.07			9.32			9.09
Nonperforming Loans as a % of Total Loans		0.56			0.52			0.52
Allowance for Loan Losses as a % of Nonperforming Loans		215.42			241.75			244.24

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

Northway Financial, Inc. Announces First Quarter Earnings

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