Northway Financial (NWYF) 10-Q 2006 Q2 Quarterly report

Exhibit 11

Statement re computation of per Share Earnings

Three Months Ended June 30, 2006

Basic Earnings Per Share:
Net Income			$	755,789.01		=	$ 0.51
Weighted Average Number of Common Shares				1,491,548
Diluted Earnings Per Share:
Net Income	$	755,789.01		=	$	755.789.01	=	$ 0.50
Weighted Average Number of Common Shares Adjusted for Effect of Outstanding Options		1,491,548 + 11,102				1,502,650

Six Months Ended June 30, 2006

Basic Earnings Per Share:
Net Income			$	1,835,690.32		=	$ 1.23
Weighted Average Number of Common Shares				1,491,362
Diluted Earnings Per Share:
Net Income	$	1,835,690.32		=	$	1,835,690.32	=	$ 1.22
Weighted Average Number of Common Shares Adjusted for Effect of Outstanding Options		1,491,362 + 10,862				1,502,224