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NORTH CONWAY, NH --(Marketwired - January 05, 2016) - The Board of Directors of Northway Financial, Inc. (the "Company") (OTCQB: NWYF), the parent company of Northway Bank, today announced that it has redeemed all of the 23,593 outstanding shares of the Company's Senior Non-cumulative Perpetual Preferred Stock, Series C (the "Preferred Stock") that had been issued to the United States Department of the Treasury (the "Treasury") in September 2011 pursuant to the Treasury's Small Business Lending Fund ("SBLF") program. The aggregate redemption price of the Preferred Stock was approximately $24 million, including dividends accrued but unpaid through, but not including, the redemption date. After the redemption, the Company's capital ratios remain in excess of the capital ratios required to meet the regulatory "well-capitalized" designation. The redemption, approved by all appropriate regulatory authorities, was paid for out of the Company's retained earnings with no additional equity or debt required. This was made possible by five years of record earnings, reflecting Management's successful execution of its growth strategy of the past several years.
Participation in the SBLF program benefited numerous small businesses in the Company's primary markets of central and northern New Hampshire. Utilizing the funds from the SBLF the Company was able to grow its small business loans by $44 million. The decision to repay the Preferred Stock was influenced by the scheduled increase in the dividend rate to 9% in March 2016. The Company continues to be committed to provide financial solutions to small businesses throughout the state of New Hampshire.
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.
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.
Chief Financial Officer