Northway Financial, Inc. Announces Third Quarter Results and
Declares Quarterly Dividend BERLIN, N.H., Oct. 28
/PRNewswire-FirstCall/ -- Northway Financial, Inc. (the "Company")
reported net income for the quarter ended September 30, 2003 of
$978,000, or $0.65 per share, compared to $175,000, or $0.12 per
share, for the same quarter in 2002, an increase of $803,000. Net
income for the nine months ended September 30, 2003 was $2,613,000,
or $1.74 per share, compared to $2,216,000, or $1.46 per share, for
the nine months ended September 30, 2002, an increase of $397,000.
Commenting on the third quarter results, William J. Woodward,
Chairman, President and Chief Executive Officer of the Company
stated: "We are pleased with the results of our latest quarter. Two
of the more significant factors in the improvement of earnings are
the more favorable market conditions for investment securities and
the acquisition last October of three branches in the Laconia area.
During this past quarter, we made further progress in continuing to
optimize the effectiveness of our technology resources, with a
focus on improved customer service and greater internal
efficiency." The Company declared a quarterly dividend on October
28, 2003 of $0.17 per share payable November 12, 2003 to
shareholders of record on November 7, 2003. Net interest and
dividend income for the third quarter of 2003 increased by $333,000
to $5,637,000 compared to $5,304,000 for the third quarter of 2002.
The provision for loan losses for the third quarter of 2003
decreased $15,000 to $210,000, compared to $225,000 for the third
quarter of last year. Securities gains for the quarter increased
$621,000 to $614,000, compared to a loss of $7,000 for the same
period last year. Noninterest income for the quarter, excluding
securities gains, increased $228,000 to $1,102,000 compared to
$874,000 for the same period last year. During the third quarter,
the Company recorded a write-down of equity securities in the
amount of $65,000 compared to $814,000 for the third quarter of
last year. Other operating expense, excluding write-down of equity
securities, increased $694,000 to $5,542,000 for the quarter,
compared to $4,848,000 for the same period last year. Net interest
and dividend income for the nine months ended September 30, 2003
increased by $1,381,000 to $17,438,000, compared to $16,057,000 for
the same period last year. The provision for loan losses for the
first nine months of 2003 decreased $20,000 to $655,000, compared
to $675,000 for the first nine months of 2002. Securities gains for
the first nine months of 2003 increased $584,000 to $851,000,
compared to $267,000 for the same period last year. Noninterest
income year-to-date, excluding securities gains, increased $582,000
to $2,886,000, compared to $2,304,000 for the same period last
year. During the first nine months of 2003, the Company recorded a
write-down of equity securities in the amount of $184,000 compared
to $814,000 for the same period last year. Other operating expense,
excluding write-down of equity securities, increased $2,497,000 to
$16,234,000 for the first nine months of 2003, compared to
$13,737,000 for the same period last year. At September 30, 2003,
Northway Financial had total assets of $619,982,000 compared to
$542,093,000 at September 30, 2002, an increase of $77,889,000.
This increase in total assets was funded by both the October 2002
acquisition of three branch facilities located in Laconia,
Pittsfield, and Belmont, New Hampshire by Pemigewasset National
Bank, a subsidiary of the Company and an increase in Federal Home
Loan Bank advances. Loans, including loans held-for- sale, at
September 30, 2003 increased $56,789,000 to $461,476,000, compared
to September 30, 2002. Investments, including federal funds sold,
increased $15,268,000 to $106,588,000. Total deposits were
$473,875,000 at September 30, 2003, an increase of $54,221,000 over
September 30, 2002. Total borrowings increased $19,929,000 to
$75,633,000. Total equity increased $2,252,000 to $46,670,000.
During the quarter the Company repurchased 5,000 shares of stock
for approximately $151,000 pursuant to the Company's current stock
repurchase program. An additional 91,915 shares are authorized for
repurchase under the current stock repurchase program. 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. 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 can be identified by the use of the words "expect,"
"believe," "estimate," "will" and other expressions which predict
or indicate future trends and which do not relate to historical
matters. Forward-looking statements may include, but are not
limited to, expectations for re-engineering and new technology
initiatives, projections of revenue, income or loss, plans for
future operations, including in new markets, 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
technology, 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 in local business conditions resulting
in rising unemployment and other circumstances 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, and changes in
assumptions used in making such forward-looking statements. These
forward- looking statements were based on information, plans and
estimates at the date of this press release, and the Company does
not promise to update any forward- looking statements to reflect
changes in underlying assumptions or factors, new information,
future events or other changes. Northway Financial, Inc. Selected
Consolidated Financial Data (Unaudited) (In thousands, except for
ratios and per share amounts) Period end balance sheet data:
September 30, 2003 2002 Total assets $619,982 $542,093 Loans, net
(1) 461,476 404,687 Investments (2) 106,588 91,320 Deposits 473,875
419,654 Borrowings 75,633 55,704 Capital securities 20,000 20,000
Stockholders' equity 46,670 44,418 Book value per share $31.12
$29.29 Tangible book value per share (3) 21.34 23.92 Leverage ratio
6.85% 9.22% Shares outstanding 1,499,574 1,516,574 For the Three
Months For the Nine Months Ended Sept 30, Ended Sept 30, Operating
results: 2003 2002 2003 2002 Net interest and dividend income
$5,637 $5,304 $17,438 $16,057 Securities gains (losses), net 614
(7) 851 267 Other noninterest income 1,102 874 2,886 2,304 Loan
loss provision 210 225 655 675 Write-down of equity securities 65
814 184 814 Other operating expense 5,542 4,848 16,234 13,737
Income before tax 1,536 284 4,102 3,402 Income tax expense 558 109
1,489 1,186 Net income $978 $175 $2,613 $2,216 Earnings per share
$0.65 $0.12 $1.74 $1.46 Return on average assets 0.62% 0.13% 0.58%
0.58% Return on average equity 8.26% 1.55% 7.61% 6.69% (1) Net of
unearned income and the allowance for loan losses. Includes loans
held-for-sale. (2) Includes federal funds sold, Federal Home Loan
Bank stock, Federal Reserve Board stock and investment securities
available-for-sale. (3) Includes a deduction of $14,676 and $7,849
for goodwill, core deposit intangible and mortgage servicing assets
for 2003 and 2002, respectively. Contact: Richard P. Orsillo Senior
Vice President and Chief Financial Officer 603-752-1171 DATASOURCE:
Northway Financial, Inc. CONTACT: Richard P. Orsillo, Senior Vice
President and Chief Financial Officer of Northway Financial, Inc.,
+1-603-752-1171
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