Yahoo Finance

Consistent with prior periods there was no provision for loan losses for the six months ended June 30, 2016 and 2015. The allowance for loan losses as a percentage of nonperforming loans increased to 204% at June 30, 2016 compared to 129% at December 30, 2015 and 126% at June 30, 2015.

Noninterest income, excluding net gain on sales of loans and net securities gains, decreased $71 thousand compared to the same period in 2015 as fees from checking accounts continue to be negatively impact by regulatory changes. Net gains on sales of securities were $1.2MM compared to $1.3MM in 2015. Noninterest expense decreased $245 thousand in 2016 due primarily to decreases in pension expense and management recruitment expense. As mentioned last quarter, the Company froze its defined benefit plan as of December 31, 2015 and is currently working through the plan termination process.

Balance Sheet Summary

At June 30, 2016, the Company had total assets of $925MM compared to $934MM at December 31, 2015 and $938MM at June 30, 2015. Since year end, deposits and securities sold under agreements to repurchase have decreased $13MM due primarily to management's decision to not renew maturing higher rate customer and institutional certificates of deposits. This has resulted in a decrease in the interest-bearing deposits of the Bank. The decrease in deposits has resulted in a decrease in cash and due from banks. In addition, cash and due from banks was further reduced as funds were invested in securities available-for-sale, which increased $5.1MM, and loans, which increased $7.0MM. Equity has increased $6.1MM since year end due to net income year to date and an improvement in the market value of securities held for sale, which increased other comprehensive income.

Compared to June 30, 2015, total assets have decreased $13.2MM. Equity decreased $14.5MM, which was due to the redemption, in December 2015, of $24MM of outstanding preferred stock issued to the US Department of Treasury under its Small Business Lending Fund. Notwithstanding this transaction, equity has increased $9.1MM due to net income of $6.1MM over the last twelve months and an increase in comprehensive income of $4.9MM partially offset by dividends of $1.9MM for the last twelve months. In addition to the decrease in Equity there was a decrease in long-term borrowings of $4.9MM. These decreases were partially offset by an increase in securities sold under agreements to repurchase with the Company's customers, also known as customer sweep accounts, of $7.6MM.

Compared to June 30, 2015, the Company continued to see a shift in total assets as net loans decreased $22.1MM and securities available-for-sale decreased $5.7MM partially offset by an increase in cash and due from banks and interest-bearing deposits of $20.1MM.

Stockholders' equity available to common stockholders totaled $76.4MM at June 30, 2016 resulting in a book value per common share of $27.78, based on 2,751,650 shares of common stock outstanding; an increase of $2.23 and $3.30 compared to December 31, 2015 and June 30, 2015, respectively. Tangible book value per common share increased $2.24 and $3.32 to $24.13 at June 30, 2016, compared to $21.89 and $20.81 at December 31, 2015 and June 30, 2015, respectively.

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 17 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.