Northway Financial 4Q income plummets
Northway Financial, a bank holding company based in Berlin, announced fourth-quarter income of $69,000, or 5 cents per basic share, compared to $934,000, or 62 cents per basic share, for the same quarter a year ago.
William J. Woodward, president and chief executive officer of the company, said much of the 93 percent drop in income was the result of one-time costs. Among them, he said, were the Oct. 1 consolidation under the name Northway Bank of its two operating subsidiaries, The Berlin City Bank and Pemigewasset National Bank of Plymouth.
He said the holding company also restructured its portfolio, closed branches in Shaw’s supermarkets in Berlin and North Conway, and is in the process of acquiring two Washington Mutual branches in Tilton and Belmont from Providian National Bank.
In addition, Northway consolidated and relocated its processing center from West Plymouth to Berlin, selling the unused building along with several other properties.
“Several of these repositioning actions resulted in one-time costs, some of which significantly impacted the fourth quarter and others of which impacted earlier quarters of the year,” said Woodward. “We expect that each of these initiatives will result in efficiencies and other benefits that will have a positive impact on earnings in future years.” — CINDY KIBBE