8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): March 31, 2007

NORTHWAY FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

New Hampshire	000-23129	04-3368579
(State or other jurisdiction of	Commission file number	(I.R.S. Employer
incorporation or organization)		Identification No.)

9 Main Street

Berlin, New Hampshire03570

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (603)752-1171

No Change

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On April 25, 2007, Northway Financial, Inc. issued a press release announcing its financial results for the first quarter of 2007. The full text of the press release is furnished as Exhibit 99.1 hereto.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits.

99.1 Press Release of Northway Financial, Inc. dated April 25, 2007.

[Remainder of page left blank intentionally]

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be filed on its behalf by the undersigned hereunto duly authorized.

	NORTHWAY FINANCIAL, INC.
Dated: April 25, 2007	By: \s\Richard P. Orsillo
	Richard P. Orsillo
	Senior Vice President and Chief Financial Officer

Exhibit Index

99.1 Press Release of Northway Financial, Inc. dated April 25, 2007.

EX-99.1

Exhibit 99.1

NORTHWAY FINANCIAL, INC.9 Main Street

  Berlin, New Hampshire 03570

Contact: Richard P. Orsillo

     Senior Vice President

    and Chief Financial Officer

    603-752-1171                FOR IMMEDIATE RELEASE

NORTHWAY FINANCIAL, INC. ANNOUNCES FIRST QUARTER

RESULTSAND DECLARES QUARTERLY DIVIDEND

Berlin, NH, April 25, 2007…Northway Financial, Inc. (the “Company”) (NASDAQ: NWFI) reported net income for the quarter ended March 31, 2007 of $846,000, or $0.57 per share-basic, compared to $1,080,000, or $0.72 per share-basic, for the same quarter in 2006, a decrease of $234,000.

Commenting on the first quarter results, William J. Woodward, President and Chief Executive Officer of the Company stated:

“The adverse interest rate environment in which Northway and other banks are operating continues to put pressure on our margin, negatively affecting our net interest and dividend income.  While the results of this quarter compared to the same quarter last year reflect this interest rate environment, we are pleased that our decision to change the mix in our investment portfolio toward more tax favored securities has partially offset this negative impact.

I am pleased to announce that Jeffrey D. Smith has joined Northway as Senior Vice President and Chief Administrative Officer, and am confident that Jeff’s 20 years of banking experience will add significant strength to our management team.”

On April 24, 2007, the Board of Directors declared a dividend of $0.20 cents per share, payable on May 14, 2007 to shareholders of record on May 4, 2007.

Net interest and dividend income for the first quarter of 2007 was $5,184,000 compared to $5,644,000 for the first quarter of 2006, a decrease of $460,000. The provision for loan losses for the first quarter of 2007 increased $15,000 to $120,000, compared to $105,000 for the first quarter of the previous year. Net securities gains for the quarter decreased $69,000 to $141,000 compared to $210,000 for the same period last year. Other noninterest income for the quarter decreased $56,000 to $1,304,000 compared to $1,360,000 for the same period last year. Other operating expense was $5,522,000 for the quarter compared to $5,699,000 for the same period last year, a decrease of $177,000.

At March 31, 2007, the Company had total assets of $678,729,000 compared to $617,262,000 at March 31, 2006, an increase of $61,467,000. Loans, including loans held-for-sale, at March 31, 2007 increased $3,530,000 to $459,103,000 compared to $455,573,000 at March 31, 2006. Investments increased $50,548,000 to $166,526,000 compared to $115,978,000 at March 31, 2006. Total deposits were $489,080,000 at March 31, 2007 compared to $453,021,000 at March 31, 2006, an increase of $36,059,000. Total borrowings increased $17,707,000 to $128,049,000 at March 31, 2007 compared to $110,342,000 at March 31, 2006. Total equity increased $2,011,000 to $52,861,000 at March 31, 2007 compared to $50,850,000 at March 31, 2006.

 Northway Financial, Inc., headquartered in Berlin, 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 full-service banking offices.

Certain statements in this press release may be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of the words “expect,” “believe,” “estimate,” “will” and other expressions which predict or indicate future trends and which do not relate to historical matters. Forward-looking statements may include, but are not limited to, expectations for impact of new products on noninterest income and expense, projections of revenue, income or loss, and plans related to products or services of the Company and its subsidiary. Such forward-looking statements are subject to known and unknown risks, uncertainties and contingencies, many of which are beyond the control of the Company. The Company’s actual results could differ materially from those projected in the forward-looking statements as the result of, among other factors, changes in interest rates, a prolonged continuation of the current interest rate environment, changes in the securities or financial markets, a deterioration in general economic conditions on a national basis or in the local markets in which the Company operates, including changes in local business conditions resulting in rising unemployment and other circumstances which adversely affect borrowers’ ability to service and repay our loans, changes in loan defaults and charge-off rates, reduction in deposit levels necessitating increased borrowing to fund loans and investments, the passing of adverse government regulation, and changes in assumptions used in making such forward-looking statements. These forward-looking statements were based on information, plans and estimates at the date of this press release, and the Company does not promise to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Northway Financial, Inc.

Selected Consolidated Financial Data

(Unaudited)

(In thousands, except for ratios and per share amounts)

Period end balance sheet data:	March 31,
	2007			2006
Total assets	$	678,729		$	617,262
Loans, net (1)		459,103			455,573
Investments (2)		166,526			115,978
Deposits		489,080			453,021
Borrowings		128,049			110,342
Stockholders’ equity		52,861			50,850
Book value per share	$	35.38		$	34.10
Tangible book value per share (3)		26.80			25.97
Leverage ratio		9.20	%		9.30	%
Shares outstanding		1,494,174			1,491,174

	For the Three Months Ended March 31,
Operating results:		2007			2006
Net interest and dividend income	$	5,184		$	5,644
Securities gains, net		141			210
Other noninterest income		1,304			1,360
Loan loss provision		120			105
Other operating expense		5,522			5,699
Income before tax		987			1,410
Income tax expense		141			330
Net income	$	846		$	1,080
Earnings per share-basic	$	0.57		$	0.72
Return on average assets		0.52	%		0.70	%
Return on average equity		6.54	%		8.58	%

¹Net of unearned income and the allowance for loan losses. Includes loans held-for-sale.

²Includes federal funds sold, Federal Home Loan Bank stock, Federal Reserve Bank stock and investment securities available-for-sale.

³Includes a deduction of $12,786 and $12,027 for goodwill, core deposit intangible and mortgage servicing assets for 2007 and 2006, respectively.