Northway Financial, Inc. Announces Adjustment to Previously Disclosed Unaudited Retained Earnings and Net Income
NORTH CONWAY, N.H., Dec. 21, 2018 (GLOBE NEWSWIRE) -- Northway Financial, Inc. (the “Company”) (OTCQB: NWYF), the parent company of Northway Bank (the “Bank”), today reported an increase in retained earnings of $775 thousand and a decrease in net income of $758 thousand retroactive to January 2, 2018. The adjustment was required due to the Bank’s adoption of a new accounting standard, ASU 2016-01.
On January 1, 2018 the Bank adopted ASU 2016-01, “Financial Instruments – overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The adoption of this ASU requires equity investments be measured at fair value with changes in fair value recognized in net income. We began recognizing the changes to fair value in the income statement with the January 31, 2018 valuation. However, this ASU requires a cumulative-effect adjustment to the financial statements as of the beginning of the fiscal year in which the guidance is adopted. This adjustment required the reclassification of other accumulated comprehensive income, related to equity securities, to be classified as retained earnings.
The results of the reclassification are an increase in retained earnings and a decrease in net income. As the accounting entries are retroactive to January 2, 2018, previously reported net income for each of the first three quarters of 2018 will be reduced accordingly. This is a one-time adjustment and does not impact total stockholders’ equity.
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 16 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.
Contact: Gary Laurash Chief Financial Officer 603-326-7377