Northway closes 2Q down 16 percent

Northway Financial, the Berlin-based parent corporation of Northway Bank, posted a 16 percent drop in net income for the second quarter of 2006.

The quarter ended June 30 closed with a net income of $756,000, or 51 cents per basic share, down from $904,000, or 60 cents per basic share, in the second quarter of 2005.

Net interest and dividend income decreased by $30,000, or 0.5 percent, to $5.64 million from $5.67 million in the second quarter of 2005.

Another notable drop was experienced in the company’s net securities gains, which fell $59,000 from $98,000 in the second quarter of 2005 to $39,000 in the second quarter of this year — a 60 percent decrease.

Despite the lower numbers for the quarter, there were modest gains for the six-month period ended June 30. Net income for the period was up 6.3 percent to $1.8 million, or $1.23 per basic share, up from $1.7 million, or $1.15 per basic share, in the same time frame in 2005.

Total assets increased by $11 million, or 1.7 percent to $640 million for the first six months of 2006, up from $629 million.

On July 25, the board of directors declared a dividend of 20 cents per share, payable on Aug. 14 to shareholders of record on August 4.

“In June we completed our third quarter as Northway Bank, and reaction from customers to this consolidation and name change leads us to believe that our new name and organization have been well received,” said William J. Woodward, president and chief executive officer. “In the second quarter, we took specific steps toward further improving our service to customers. On April 7, we completed the acquisition of two branches from Washington Mutual Bank, thereby expanding banking opportunities for our customers and solidifying our position in the Lakes Region. Additionally, to create a uniform Northway Bank ‘look,’ we are renovating and upgrading several of our branches.” – CINDY KIBBE