A N N U A L R E P O R T 2 0 1 6

a year lived in

NORWAY BANCORP, MHC SINCE 1866

It’s amazing to think our story began in 1866—with 14 locals

who shared a vision for what a community bank could be.

A century and a half later, Norway Savings Bank is a leader

among community banks in Maine, ready for another 150

years as a beacon for banking in Maine.

Looking back, 2016 was memorable for many reasons.

Once again, we achieved record earnings and our capital

grew to a new historic high. Bauer Financial awarded us a

5-star rating, a recognition we have earned for more than

25 years for our continued strong financial performance.

As a bank, we work hard and pull together to make a

difference in our communities and our world. I am proud

of the role Norway Savings Bank, and all community banks

continue to play in improving the economic health of our

area residents, businesses and the state of Maine. In 2016,

Norway Savings Bank made $165 million in consumer

loans helping hundreds of Mainers buy homes and educate

their children; an additional $140 million was loaned to area

businesses for working capital, real estate and equipment

needs; and our Asset Management Group provided support

to help Mainers retire comfortably and to protect their hard

earned assets.

These financial achievements allow us to meet our goal of

delivering the best banking experience in Maine—and we do that

by continuing to invest in technology and banking channels. In

late 2016, we built a new website, www.norwaysavings.bank,

moving our domain from .COM to .BANK to enhance our

online security and to defend against cybercrime. We also

issued EMV chip-enabled debit cards to our customers and

updated all of our ATMs so that they are EMV-compliant. The

growth explosion and adoption of mobile users, 22% in 2016,

is a trend that we continue to see as a preference for banking

what a YEAR it was

in the future and we now offer mobile deposit, Apple Pay,

Android Pay and Samsung Pay to improve our mobile

customer experience.

Our 2016 accomplishments are a true source

of pride, the product of hard work from our greatest

resource, our employees. And still, there’s another set

of numbers we are just as proud of: employees

volunteering more than 40,000 hours at various non-

profits over the past five years, as well as the bank

providing millions of dollars through donations and

sponsorships over the last decade. It’s humbling to think

we’ve helped support over 400 different Maine non-

profits in 2016 alone. And then there’s this number—95.

It’s the percentage of Norway Savings employees who

decided to make their health a priority by participating

in our wellness program—95%! The good news just keeps

coming. In 2016, Norway Savings Bank was honored as

one of the Best Banks to Work For by American Banker

and Best Companies Group as well as one of the Best

Places to Work in Maine.

So yes, 2016 was a year of celebration and also for

evaluating the Norway Savings Bank brand. For years,

we have offered our customers “Colorful Solutions,”

and the idea of “making a difference” led us to a new

way to express our brand promise, empowering our

customers with a simple statement—Live Your Life in

Color. You’ll see our new look and feel across all of our

communications—and you can read about our brand

refresh in this report.

Looking back on this past year only makes me look

forward to year 151 that much more. So, go live your life

in color. And know that we will be with you every step

of the way, doing what we can to help you be you.

PERSONAL BANKING• Checking, Savings, CDs & IRAs• GenGold® Savings Program• Health Savings Accounts• Debit / ATM Cards• Home Mortgages• Home Equity Lines of Credit• Construction Loans• Auto, Boat and Other Personal Loans

BUSINESS BANKING• Checking and Savings Accounts• Debit/ATM Cards• Cash Management Services• inBusiness Remote Deposit• Commercial Loans• Construction Loans• Lines of Credit• Equipment Loans• Agency Guaranteed Loans

OTHER SERVICES• Internet Banking• Bill Pay• e-Statements• Mobile Banking• Online Account Opening• Telephone Banking• Maine Cash AccessSM ATM Alliance

ASSET MANAGEMENT GROUP• Investment Management• Estate Planning• Trust Services

• Not FDIC Insured• No Bank Guarantee• May Lose Value

— PATRICIA WEIGEL, PRESIDENT & CEO

whatsyourGREEN?

fly your flag

choose your own adventure

We all come from different walks of

life, but there’s one thing we have in

common: we live our lives in COLOR.

This idea is what drives our refreshed

brand expression—to celebrate you,

our customer, as a unique individual,

while offering banking that fits your life.

a brand about

YOU

Because even though we’re only a small part of your life,

when you live your life in color, Norway Savings Bank is with

you, every step of the way, doing our best to help you be you.

we all come from different walks of life

what'sYOURhappy

WE STANDfrom whereSTATEMENT OF CONDITION Annual statement as of December 31, 2016

ASSETS 12/31/16 12/31/15Cash on Hand and in Banks $37,233,010 $27,352,842 United States Government Bonds & Agencies* $9,747,361 $13,931,908 Mortgage-Backed Securities* $17,052,007 $19,740,555 Municipal Bonds* $18,834,666 $17,052,355 Corporate Stock* $50,551,310 $48,876,986 Residential Real Estate Loans $452,432,730 $417,502,275 Commercial Real Estate Loans $321,054,703 $309,347,007 Business Loans $56,589,321 $56,494,500 Other Loans $52,107,245 $43,465,285 Allowance for Loan Loss ($8,308,693) ($8,492,128)Federal Funds Sold $504,995 $504,108 Real Estate Owned $39,461,429 $31,890,171 Furniture & Equipment $4,905,350 $5,137,393 Investments in Unconsolidated Subsidiaries $0 $65,585 Goodwill & Other Intangible Assets $6,729,129 $7,215,407 Other Assets $33,708,948 $35,057,044

Total Assets $1,092,603,511 $1,025,141,293

* Listed at market value

This statement has not been reviewed or confirmed for accuracy or relevance by the FDIC.

LIABILITIES Amount Due Depositors $900,144,183 $845,958,483 Other Liabilities $12,194,738 $11,116,026 Other Borrowings $27,219,592 $27,472,843 Reserve Funds & Undivided Profits $153,044,997 $140,593,941 Total Liabilities $1,092,603,511 $1,025,141,293

WE STANDSTATEMENT OF OPERATIONS

GROSS OPERATING INCOME

Interest on Bonds $1,210,873

Dividends on Stock $1,254,224

Interest on Loans $39,248,807

Other Interest Income $214,990

Total Interest Income $41,928,894

Interest Expense $2,538,344

Net Interest Income $39,390,550

Other Income $8,086,868

Allowance for Loan Loss $50,000

Operating Expense $36,218,831

Core Earnings $11,208,587

Security Gains (Loss) $2,984,207

Income before Taxes $14,192,794

Estimated Income Tax $3,916,853

INCOME AFTER TAXES $10,275,941

TOTAL ASSETS(in millions)

INCOME AFTER TAXES(in millions)

‘12 ‘13 ‘14 ‘15 ‘16‘12 ‘13 ‘14 ‘15 ‘16

$1 100

$1080

$1060

$1040

$1020

$1000

$980

$960

$940

$920

$11

$10

$9

$8

OFFICERSEXECUTIVEPatricia Weigel, President & CEOPam Veilleux, Assistant Vice President,Executive Administration

BUSINESS BANKINGDaniel Walsh, Executive Vice President,Senior Commercial Banking OfficerCarolyn S. Thomas, Senior Vice President,Commercial Credit Administration & Loan ServicingMelissa E. Babineau, Vice President,Cash Management ManagerPamela J. Bowerman, Vice President,Commercial LendingJanice Brown, Assistant Vice President, Commercial Loan AdministrationJack Day, Regional Vice President,Commercial LendingBrian Desjardins, Vice President,Commercial LendingTalley Estes, Assistant Vice President, Commercial Loan AdministrationRichard R. Flagg, Regional Vice President,Commercial LendingEthan Gamage, Assistant Vice President,Commercial Portfolio ManagerPeter H. Godsoe, Regional Vice President,Commercial LendingNoel Graydon, Regional Vice President,Commercial LendingAnita Hamilton, Assistant Vice President,Senior Commercial Credit AnalystRobert C. Harville, Assistant Vice President,Commercial LendingDonny Hinkley, Assistant Vice President, Commercial LendingTim Michalak, Vice President, Commercial LendingDana Myles, Vice President, Commercial LendingBruce Ottman, Vice President,Commercial Credit ManagerIan Pullen, Vice President, Commercial LendingJanet S. Ross, Vice President,Special Assets OfficerTodd Schryer, Assistant Vice President,Commercial Appraisal ReviewerWilliam Wurts White III, Vice President,Commercial Lending

PERSONAL BANKINGDarci Hamm, Senior Vice President,Retail BankingJennifer Bell Corbett, Vice PresidentMortgage Sales Manager

Randy Easler, Vice PresidentRetail Loan Center ManagerJill French, Assistant Vice President, Customer Care Center ManagerAndrea Osgood, Regional Vice President,Retail BankingLouis Paquet, Assistant Vice President,Retail Collections ManagerTerry Seavey, Regional Vice President,Retail BankingDebora Ward, Regional Vice President,Retail Banking

BRANCHES & CONSUMER LENDERSCrystal V. Card, Assistant Vice President & Market ManagerMaine Street & Cooks Corner, Brunswick Iva A. Carroll, Vice PresidentRetail Lender & Windham Branch ManagerKristen Charette, Vice President, & Fryeburg Branch ManagerHolly M. Chase, Vice President,Personal & Small Business DevelopmentTina M. Croteau, Vice President,Personal & Small Business DevelopmentKaleigh Gerity Deering, Vice President & Retail Lender & Mortgage Loan OfficerLinette Dehetre, Assistant Vice President& Auburn Branch ManagerMaria Edwards, Vice President & Yarmouth Branch Manager Jason P. Fitzgerald, Vice President & Market Manager Kennebunk & SacoMichael Scott Grass, Assistant Vice President & Market ManagerNorway & South Paris Kyle W. Hodgkins, Vice President & Market ManagerCongress Street, Exchange Street & Forest Avenue, PortlandKarry R. Kane, Assistant Vice President& Topsham Branch ManagerKathryn A. Letourneau, Vice President, Retail & Indirect Lending OfficerSherrie L. Maietta, Assistant Vice President& South Portland Branch ManagerMary Metcalf, Vice President,Personal & Small Business DevelopmentErin L. Nelson, Assistant Vice President & Market ManagerBridgton & Naples William J. Onorato, Vice President & Scarborough Branch ManagerGerald Scott Smith, Vice President& Bethel Branch ManagerKelly J. Sturmer, Assistant Vice President & Market ManagerGorham & Standish

ASSET MANAGEMENT GROUPJennifer Cook Schumacher, Senior Vice President,Senior Trust OfficerBrian J. Bernier, Vice President, Investment OfficerKurt C. Garascia, Vice President, Investment Officer Mary Leavitt, Vice President, Senior Trust OfficerBrittany L. Robidoux, Assistant Vice President, Trust Officer

FINANCE & FACILITIESBrian Shibles, Executive Vice President & TreasurerCharles Williams, Vice President, Finance & AccountingSharon E. Breytenbach, Assistant Vice President,AccountingMichael Noble, Vice President, Facilities & Purchasing

HUMAN RESOURCESRichelle Wallace, Senior Vice President, Human ResourcesTricia L. Brooks, Assistant Vice President, Human ResourcesMary Hewett, Vice President,Employee Development & Training ManagerAmy Marshall, Assistant Vice President,Senior Employee Development SpecialistPatricia Shields, Vice President, Human Resources Manager

MARKETINGKaren Hakala, Senior Vice President, Marketing

RISK MANAGEMENT & OPERATIONSSteven Whitney, Executive Vice President,Risk Management, Deposit Operations & ITBobbie-Jo Chase, Assistant Vice President, Deposit OperationsJanice de Lima, Vice President, CRA OfficerRhonda Ferrara, Vice President, Compliance Officer Vicky Libby, Vice President, Loan ServicingChristine McMann, Assistant Vice President,Senior Operational Support Applications AnalystDebra McPhail, Vice President, Deposit OperationsNancy Stroud, Assistant Vice President, BSA Program AnalystBarry Towle, Vice President, Security Officer

INFORMATION TECHNOLOGY Ann Brett, Senior Vice President, Chief Technology & Information Security OfficerRay Charest, Vice President,IT Network Manager & AdministratorBrenda Moore, Vice President, IT Mainframe Manager

senior MANAGEMENTPATRICIA WEIGEL President & Chief Executive OfficerPat Weigel joined Norway Savings in 2001 and has worked in the banking industry for 30 years, and is also the first female president in the bank’s history. She is active in the community and serves on the boards of Norway Savings Bank

and Outdoor Sports Institute. Pat also serves as board chair of Western Maine Health and is a member of the Professional Development Council of the American Bankers Association (ABA). She is a graduate of Denison University.

BRIAN SHIBLES Executive Vice President & TreasurerBrian Shibles began his career with Norway Savings in 2002, was promoted to Chief Financial Officer in 2006 and was elected Treasurer in 2013. In addition to overseeing the bank’s financial accounting, budget and investments, he is involved in

many of the Bank’s strategic initiatives, including asset and liability management, new product development and facilities-related initiatives. In 2008, Brian graduated from the National School of Banking at Fairfield University as class valedictorian.

DANIEL WALSH Executive Vice President, Senior Commercial Banking OfficerDan Walsh has over 30 years of banking experience, joining Norway Savings in 1997 as a Vice President & Commercial Lender. As Executive Vice President, Senior Commercial Banking Officer, Dan oversees all commercial banking

functions, including business development, asset quality and portfolio management. Dan earned a Bachelor of Science in Finance from Salem State University and an MBA from Southern New Hampshire University. He also attended the American Bankers Association National Graduate School of Banking, where he distinguished himself as valedictorian.

STEVEN WHITNEY Executive Vice President, Risk Management, Deposit Operations and Information TechnologySteven Whitney began his career with Norway Savings in 2006 and has been instrumental in the Bank’s risk management process. He plays an important role in many of the Bank’s

strategic initiatives and recently took on responsibility for the Deposit Operations and IT departments. Steve currently serves on the NEACH (New England ACH) Board of Directors. Steve earned both a Bachelor of Science with Honors in Management and an MBA from Northeastern University. He is also a graduate of the Executive Program at MIT and the Federal Reserve System Leadership Institute at Northwestern University.

ANN BRETT Senior Vice President, Chief Technology & Information Security OfficerAnn Brett joined Norway Savings in 1983 and has been

a member of the IT department since 1986. In 2005, she became the Network Administrator and in 2012 was promoted to her current position, where she is responsible

for the overall management of Information Technology and Information Security. Ann holds an Associate’s degree in Business Administration, is a graduate of the New England School for Financial Studies and graduated with honors from the National School of Finance, ABA Stonier Program in 2012.

KAREN HAKALA Senior Vice President, Marketing Karen Hakala joined Norway Savings in 1997. She oversees the Bank’s marketing functions and plays an integral role in the Bank’s strategic initiatives, including product development, technology implementation, brand development and the design and branding of new branches. Karen has a Bachelor of Science degree in

Leadership & Organizational Studies from the University of Southern Maine. She is also a graduate of the American Bankers Association’s School of Bank Marketing and holds a Certified Financial Marketing Professional (CFMP) designation.

DARCI HAMM Senior Vice President, Retail BankingDarci Hamm has worked in the banking industry for over 20 years and began her career with Norway Savings Bank in 1999. As Senior Vice President & Retail Banking Officer, Darci oversees all retail banking functions, including branch administration, customer care, retail lending and asset quality. Darci holds a

Bachelor of Science degree in Business Administration, graduating from the University of Maine and the New England School of Banking.

JENNIFER COOK SCHUMACHER Senior Vice President & Senior Trust OfficerJennifer Schumacher joined Norway Savings in 2005 and has been working with trust and investment management clients for 25 years. Her area of expertise includes estate and financial planning for individuals and nonprofits. Jennifer graduated from

the University of Maine with a Bachelor of Science in Marketing. She attended Cannon Financial Institute and graduated from the Personal Trust Program in 1996 and Personal Trust Graduate Program in 2008. Jennifer earned her designation as a Certified Trust and Financial Advisor (CTFA) in 1997. She is currently serving on the Board of Trustees for Seventy-Five State Street as well as the Finance and Human Resource committees. She is also a member of the Maine Estate Planning Council.

CAROLYN THOMAS Senior Vice President, Commercial Credit Administration & Loan ServicingCarolyn Thomas joined Norway Savings in 1999 and has over 30 years of experience in lending and bank operations. Carolyn oversees the Bank’s commercial loan policies, commercial credit underwriting, commercial loan administration, commercial

compliance, special assets and the Bank’s Loan Operations department. Carolyn has a BA in Math and Economics.

RICHELLE WALLACE Senior Vice President, Human ResourcesRichelle Wallace joined Norway Savings in 2005 and has over 30 years of progressive human resources, business operations and leadership experience. She aligns talent initiatives with the Bank’s mission, vision and strategic direction. Richelle has a Master’s Degree in Human Resources Development and a

Bachelor’s Degree in Business Administration. She is an honors graduate of the Graduate School of Banking at Colorado. Richelle is certified as a Senior Professional in Human Resources (SPHR) and a Senior Certified Professional (SHRM-SCP). She is currently appointed by the Governor to serve on the Maine Worker’s Compensation Board.

Norway Bancorp, MHC

CORPORATORSR. Elizabeth BairdAngela BancroftMark BancroftLance Bean, CPAEugene BennerRick BennettBrenda BirneyRobert BizierWilliam ChalmersAndrew CharlesTimothy ChurchillPeter ConnellDavid CowensC. Bradley CummingsJames DetertEdward Dilworth III, Esq.David Dow, Esq.Rev. John EllisLarry E. Farmer, ODMaryEllen FitzGeraldTodd Gauger, DVM

William GoddardStuart W. Goodwin, IIDeborah Hammond-HarlowGregory Hardy, MDSuzanne HardyRobert A. Harmon, CPADavid E. Hoisington, CPARobert HoldenShirley HuffDebi IronsWilliam JohnsonJosh KennisonJacqueline KimMyung Kim, DMDDavid Kumaki, MDDavid LongstaffPeter McAlaneyJill McGowanDaniel MeyerMichael MeyerEd Michaud

Nancy MichaudLisa Miller, MDTed MocciaShawn MoodyTed MortonTom MortonHoward MundayKaty NoonanPeter W. ObergJay PartridgeJohn PetersJohn PintoJamey PittmanGina PolandHeath PolandLloyd PolandDavid PrebleMichael QuinnDonald W. RayeLisa RideoutBrian E. Shibles

DIRECTORS Honorary DirectorsAllen BancroftRichard Gaisford, CPACharles F. Gauger, DVMFrancis H. ShoreyEdward Simensky, CPA

Board of DirectorsEugene BennerWilliam ChalmersDavid Dow, Esq.MaryEllen FitzGeraldRobert A. Harmon, CPA, Chairman David E. Hoisington, CPA, Vice ChairmanTom MortonJohn PetersPatricia Weigel, President & CEO

Ronald S. Smith, Jr.Jonathan SpakWilliam StockwellRobert Story, MDFreda TrumanDonald E. Ware, MDPeter WarrenPatricia WeigelSteve WentworthSeth WescottMarc WestJohn WestonValerie WestonNancy Stowell WhiteWilliam W. White IIISteve WhitneyJohn WilliamsWendy WilliamsTom WrightDavid L. WymanHolly Young

choose

YOUR own adventure

branch LOCATIONS

Kennebunk68 Portland RoadKennebunk, ME 04043(207) 985.4001

Naples621 Roosevelt TrailNaples, ME 04055(207) 693.6224

Norway, Main Office261 Main StreetPO Box 347Norway, ME 04268(207) 743.7986

Portland, Congress Street1200 Congress StreetPO Box 8550Portland, ME 04102(207) 774.5000

Auburn 31 Court Street Auburn ME 04210(207) 782.2700

BethelOne Parkway, Suite 100Bethel, ME 04217(207) 824.4989

Bridgton1 Harrison RoadBridgton, ME 04009(207) 647.3344

Brunswick, Cooks Corner14 Gurnet RoadBrunswick, ME 04011(207) 725.4303

Brunswick, Maine Street83 Maine StreetBrunswick, ME 04011(207) 725.5591

Falmouth 266 US Route 1 Falmouth, ME 04105(207) 781.7450

Freeport8 Mallett DriveFreeport, ME 04032(207) 865.6141

Fryeburg557 Main StreetFryeburg, ME 04037(207) 935.2051

Gorham65 Main StreetGorham, ME 04038(207) 222.1502

Gray1 Libby Hill RoadGray, ME 04039(207) 791.2121

way

walk your

OWN

Portland, Exchange Street120 Exchange StreetPortland, ME 04101(207) 879.4307

Portland, Forest Avenue446 Forest AvenuePortland, ME 04101(207) 772.0017

Saco 569 Main StreetSaco, ME 04072(207) 282.6121

Scarborough158 US Route 1PO Box 1599Scarborough, ME 04070-1599(207) 885.0742

South Paris7 High StreetSouth Paris, ME 04281(207) 743.9771

South Portland207 Waterman DriveSouth Portland, ME 04106(207) 741.9100

Standish88 Ossipee Trail EastPO Box 489Standish, ME 04084(207) 642.1290

Topsham47 Topsham Fair Mall RoadTopsham, ME 04086(207) 725.5950

Windham10 Franklin DriveWindham, ME 04062(207) 892.3339

Yarmouth 688 US Route 1Yarmouth, ME 04096(207) 846.8701

LOVE what you do

a celebration

150 YEARSin the making

261 Main Street, PO Box 347 | Norway, ME 04268 | www.norwaysavings.bank | MEMBER FDIC

It all started in 2015 when we asked local artists to create a piece that conveyed the spirit of the Norway

Savings Bank brand, Maine culture and way of life. Every page of the 2016 Norway Savings Bank calendar

showcased winning artwork, including the painting above by local artist, Barbara Traficonte. In 2016, we

began our 150th year by publishing a special commemorative book chronicling the

bank’s history and significant milestones. On February 5th, our official anniversary,

cake was cut and enjoyed in all of our locations as we began

celebrating with our customers, communities, corporators and

employees. Words of congratulations came in from members of

our Maine delegation, and from local house and senate members

—even U.S. Senator Angus King stopped by our Brunswick office! And, in the spirit of giving

back, our employees published a limited-edition cookbook with proceeds (all $10,000)

distributed to various food pantries in our branch markets. To capture memories and to

preserve our culture, our employees also created a 25-year time capsule they filled with mementos, photos

and stories to be enjoyed by future generations of NSB employees. This is how we celebrated 150 years in

banking. And now we’re ready for 150 more.