Northway Financial, Inc. Announces First Quarter Results and Declares Quarterly Dividend

Apr 17, 2001, 01:00 ET from Northway Financial, Inc.

    BERLIN, N.H., April 17 /PRNewswire/ -- Northway Financial, Inc.
 (Nasdaq: NWFI)  reported net income for the quarter ended March 31, 2001 of
 $1,002,000, or $0.65 per share, compared to $1,004,000, or $0.62 per share,
 for the same quarter in 2000.  The increase to earnings per share is the
 result of the Company's repurchase of 69,746 shares of its common stock during
 the past twelve months. The Company declared a quarterly dividend on April 17,
 2001 of $0.17 per share payable May 9, 2001 to shareholders of record on April
 27, 2001.
     Commenting on the first quarter results, William Woodward, Chairman,
 President and Chief Executive Officer stated "We are pleased with our first
 quarter results and continue to focus on improving profitability,
 strengthening our product line, and improving our technological capabilities.
 During the coming months we expect to introduce internet banking, corporate
 cash management and a new telephone banking system. We feel these enhancements
 will provide our customers with products relevant to today's banking
 environment."
     Net interest income for the first quarter decreased by $182,000 from the
 first quarter of 2000 to $5,101,000.  Interest income increased $343,000 due
 primarily to an increase in average earning assets of $5.8 million, partially
 offset by a lower yield on these earning assets. Interest expense increased
 $525,000 as a result of a shifting of funds into money market accounts and
 certificates of deposit, higher costing sources of funds.
     The provision for loan losses decreased $20,000 to $225,000 from the
 $245,000 recorded in the first quarter of last year.  Noninterest income for
 the quarter ended March 31, 2001, excluding securities gains, increased by
 $122,000, or 27.9%, to $560,000 compared to $438,000 for the same period last
 year. This increase was due primarily to higher service charges on transaction
 accounts, serviced loan income, and mastermoney fees.  Securities gains
 decreased $87,000 compared to the same period last year.  Noninterest expense
 decreased $25,000, or 0.6%, to $4,029,000 for the quarter ended March 31, 2001
 compared to $4,054,000 for the quarter ended March 31, 2000.
     At March 31, 2001, Northway Financial had total assets of $478.6 million
 compared to $474.6 million at March 31, 2000, an increase of $4.0 million.
 Loans, net of unearned income, increased  $2.0 million to $389.4 million,
 while loans held-for-sale increased $0.5 million to $0.6 million.
 Investments, including federal funds sold, decreased $0.9 million to $59.2
 million. Total deposits were $381.6 million at March 31, 2001, an increase of
 $44.4 million over March 31, 2000.  Total equity increased $2.3 million to
 $41.8 million.
     During the quarter the Company repurchased 26,546 shares of stock for
 approximately $637,000.  An additional 129,454 shares are authorized to be
 repurchased under the current stock repurchase program.
 
     Certain statements in this press release are "forward-looking statements"
 within the meaning of the Private Securities Litigation Reform Act of 1995.
 Such forward-looking statements may include, but are not limited to,
 projections of revenue, income or loss, plans for future operations and
 acquisitions, and plans related to products or services of the Company and its
 subsidiaries.  Such forward-looking statements are subject to known and
 unknown risks, uncertainties and contingencies, many of which are beyond the
 control of the Company.  The Company's actual results could differ materially
 from those projected in the forward-looking statements as the result of, among
 other factors, changes in interest rates, changes in the securities or
 financial markets, a deterioration in general economic conditions on a
 national basis or in the local markets in which the Company operates,
 including changes which adversely affect borrowers' ability to service and
 repay our loans, changes in loan defaults and charge-off rates, reduction in
 deposit levels necessitating increased borrowing to fund loans and
 investments, the passing of adverse government regulation, changes in
 assumptions used in making such forward-looking statements, as well as those
 factors set forth in the Company's Annual Report on Form 10-K for the year
 ending December 31, 2000, as well as in the Company's other filings with the
 Securities & Exchange Commission.
 
     Northway Financial, Inc., headquartered in Berlin, New Hampshire, is a
 multi-bank holding company.  Through its subsidiary banks, The Berlin City
 Bank and Pemigewasset National Bank, the Company offers a broad range of
 financial products and services to individuals, businesses and the public
 sector from its full service banking offices.
 
                            Northway Financial, Inc.
                      Selected Consolidated Financial Data
                                  (Unaudited)
            (In thousands, except for ratios and per share amounts)
 
     Period End Balance                                       March 31,
     Sheet Data:                                         2001           2000
 
     Total Assets                                    $478,630       $474,618
     Loans, net(1)                                    385,521        383,332
     Investments(2)                                    59,230         60,111
     Deposits                                         381,568        337,182
     Borrowings                                        51,309         92,990
     Stockholders' Equity                              41,774         39,518
 
     Tangible book value per share                     $24.04         $23.88
     Leverage Ratio                                     7.57%          8.44%
     Shares outstanding                             1,532,823      1,602,569
 
                                                        For the Three Months
                                                            Ended March 31,
 
     Operating Results:                                  2001           2000
 
     Net Interest Income                               $5,101         $5,283
 
     Gain on Sale of Investments                           33            120
     Other Noninterest Income                             560            438
     Loan Loss Provision                                  225            245
     Other Operating Expense                            4,029          4,054
     Income Before Tax                                  1,440          1,542
     Income Tax Expense                                   438            538
     Net Income                                        $1,002         $1,004
 
     Earnings Per Share                                 $0.65          $0.62
     Return on Average Assets                           0.83%          0.87%
     Return on Average Equity                           9.71%         10.21%
 
     (1) Includes loans held-for-sale
     (2) Includes federal funds sold, Federal Home Loan Bank stock, Federal
 Reserve Board stock, investment securities available-for-sale and investment
 securities held-to-maturity
 
 

SOURCE Northway Financial, Inc.
    BERLIN, N.H., April 17 /PRNewswire/ -- Northway Financial, Inc.
 (Nasdaq: NWFI)  reported net income for the quarter ended March 31, 2001 of
 $1,002,000, or $0.65 per share, compared to $1,004,000, or $0.62 per share,
 for the same quarter in 2000.  The increase to earnings per share is the
 result of the Company's repurchase of 69,746 shares of its common stock during
 the past twelve months. The Company declared a quarterly dividend on April 17,
 2001 of $0.17 per share payable May 9, 2001 to shareholders of record on April
 27, 2001.
     Commenting on the first quarter results, William Woodward, Chairman,
 President and Chief Executive Officer stated "We are pleased with our first
 quarter results and continue to focus on improving profitability,
 strengthening our product line, and improving our technological capabilities.
 During the coming months we expect to introduce internet banking, corporate
 cash management and a new telephone banking system. We feel these enhancements
 will provide our customers with products relevant to today's banking
 environment."
     Net interest income for the first quarter decreased by $182,000 from the
 first quarter of 2000 to $5,101,000.  Interest income increased $343,000 due
 primarily to an increase in average earning assets of $5.8 million, partially
 offset by a lower yield on these earning assets. Interest expense increased
 $525,000 as a result of a shifting of funds into money market accounts and
 certificates of deposit, higher costing sources of funds.
     The provision for loan losses decreased $20,000 to $225,000 from the
 $245,000 recorded in the first quarter of last year.  Noninterest income for
 the quarter ended March 31, 2001, excluding securities gains, increased by
 $122,000, or 27.9%, to $560,000 compared to $438,000 for the same period last
 year. This increase was due primarily to higher service charges on transaction
 accounts, serviced loan income, and mastermoney fees.  Securities gains
 decreased $87,000 compared to the same period last year.  Noninterest expense
 decreased $25,000, or 0.6%, to $4,029,000 for the quarter ended March 31, 2001
 compared to $4,054,000 for the quarter ended March 31, 2000.
     At March 31, 2001, Northway Financial had total assets of $478.6 million
 compared to $474.6 million at March 31, 2000, an increase of $4.0 million.
 Loans, net of unearned income, increased  $2.0 million to $389.4 million,
 while loans held-for-sale increased $0.5 million to $0.6 million.
 Investments, including federal funds sold, decreased $0.9 million to $59.2
 million. Total deposits were $381.6 million at March 31, 2001, an increase of
 $44.4 million over March 31, 2000.  Total equity increased $2.3 million to
 $41.8 million.
     During the quarter the Company repurchased 26,546 shares of stock for
 approximately $637,000.  An additional 129,454 shares are authorized to be
 repurchased under the current stock repurchase program.
 
     Certain statements in this press release are "forward-looking statements"
 within the meaning of the Private Securities Litigation Reform Act of 1995.
 Such forward-looking statements may include, but are not limited to,
 projections of revenue, income or loss, plans for future operations and
 acquisitions, and plans related to products or services of the Company and its
 subsidiaries.  Such forward-looking statements are subject to known and
 unknown risks, uncertainties and contingencies, many of which are beyond the
 control of the Company.  The Company's actual results could differ materially
 from those projected in the forward-looking statements as the result of, among
 other factors, changes in interest rates, changes in the securities or
 financial markets, a deterioration in general economic conditions on a
 national basis or in the local markets in which the Company operates,
 including changes which adversely affect borrowers' ability to service and
 repay our loans, changes in loan defaults and charge-off rates, reduction in
 deposit levels necessitating increased borrowing to fund loans and
 investments, the passing of adverse government regulation, changes in
 assumptions used in making such forward-looking statements, as well as those
 factors set forth in the Company's Annual Report on Form 10-K for the year
 ending December 31, 2000, as well as in the Company's other filings with the
 Securities & Exchange Commission.
 
     Northway Financial, Inc., headquartered in Berlin, New Hampshire, is a
 multi-bank holding company.  Through its subsidiary banks, The Berlin City
 Bank and Pemigewasset National Bank, the Company offers a broad range of
 financial products and services to individuals, businesses and the public
 sector from its full service banking offices.
 
                            Northway Financial, Inc.
                      Selected Consolidated Financial Data
                                  (Unaudited)
            (In thousands, except for ratios and per share amounts)
 
     Period End Balance                                       March 31,
     Sheet Data:                                         2001           2000
 
     Total Assets                                    $478,630       $474,618
     Loans, net(1)                                    385,521        383,332
     Investments(2)                                    59,230         60,111
     Deposits                                         381,568        337,182
     Borrowings                                        51,309         92,990
     Stockholders' Equity                              41,774         39,518
 
     Tangible book value per share                     $24.04         $23.88
     Leverage Ratio                                     7.57%          8.44%
     Shares outstanding                             1,532,823      1,602,569
 
                                                        For the Three Months
                                                            Ended March 31,
 
     Operating Results:                                  2001           2000
 
     Net Interest Income                               $5,101         $5,283
 
     Gain on Sale of Investments                           33            120
     Other Noninterest Income                             560            438
     Loan Loss Provision                                  225            245
     Other Operating Expense                            4,029          4,054
     Income Before Tax                                  1,440          1,542
     Income Tax Expense                                   438            538
     Net Income                                        $1,002         $1,004
 
     Earnings Per Share                                 $0.65          $0.62
     Return on Average Assets                           0.83%          0.87%
     Return on Average Equity                           9.71%         10.21%
 
     (1) Includes loans held-for-sale
     (2) Includes federal funds sold, Federal Home Loan Bank stock, Federal
 Reserve Board stock, investment securities available-for-sale and investment
 securities held-to-maturity
 
 SOURCE  Northway Financial, Inc.