---
title: "Norwood Financial Corp announces Second Quarter Financial Results | NWFL Stock News"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293480309.md"
description: "Norwood Financial Corp (NWFL) reported record second-quarter 2026 net income of $9.3 million and diluted EPS of $0.86, driven by a 47-basis-point expansion in net interest margin to 3.90%. Total assets reached $2.908 billion following the successful integration of Presence Bancshares. The company highlighted strong profitability, disciplined balance sheet management, and continued focus on credit quality and long-term shareholder value creation."
datetime: "2026-07-22T05:21:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293480309.md)
  - [en](https://longbridge.com/en/news/293480309.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293480309.md)
---

# Norwood Financial Corp announces Second Quarter Financial Results | NWFL Stock News

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**Quarterly Highlights:**

-   Record net income of $9.3 million.
-   Record net interest income of $26.8 million.
-   Diluted earnings per share of $0.86.
-   Total assets of $2.908 billion.
-   Tangible book value per share increased to $22.96, surpassing the pre-acquisition value of $22.90.
-   Successfully completed Presence Bancshares integration, including core system conversion and brand convergence.

HONESDALE, Pa., July 22, 2026 (GLOBE NEWSWIRE) -- Norwood Financial Corp (the “Company”) (Nasdaq Global Market-NWFL), the holding company of Wayne Bank, announced results for the second quarter and six months ended June 30, 2026.

Jim Donnelly, President and Chief Executive Officer, stated, “We are pleased to announce strong second quarter results, highlighted by record net interest income, improved profitability, and continued progress following the integration of Presence Bancshares. Net interest margin expanded on both a year-over-year and linked-quarter basis, reflecting disciplined balance sheet management and the benefit of our larger franchise. We remain focused on credit quality, expense management, and long-term value creation for our shareholders as our teams continue to execute.”

(dollars in thousands, except per share data)

Year-Over Year

Linked Quarter

Year-to-Date

3 Months Ended

3 Months Ended

6 Months Ended

Jun-26

Jun-25

Change

Mar-26

Change

Jun-26

Jun-25

Change

Net interest income

$

26,839

$

19,065

$

7,774

$

24,554

$

2,285

$

51,393

$

36,923

$

14,470

Net interest spread (fte) 1

3.27%

2.75%

52 bps

3.04%

23 bps

3.16%

2.68%

48 bps

Net interest margin (fte) 1

3.90%

3.43%

47 bps

3.68%

22 bps

3.79%

3.37%

42 bps

Pre Provision Net Revenue (PPNR) 1

$

13,573

$

8,782

$

4,791

$

6,279

$

7,294

$

19,852

$

16,927

$

2,925

Net income

$

9,328

$

6,205

$

3,123

$

3,730

$

5,598

$

13,058

$

11,978

$

1,080

Diluted earnings per share

$

0.86

$

0.67

$

0.19

$

0.35

$

0.51

$

1.21

$

1.30

$

(0.09

)

Return on average assets

1.28%

1.06%

22 bps

0.53%

75 bps

0.91%

1.03%

(12 bps)

Return on tangible equity

15.04%

12.83%

221 bps

6.04%

900 bps

10.55%

12.62%

(207 bps)

**Excluding merger-related expenses and 2026 BOLI Restructuring Fees (see Non-GAAP reconciliations)**

(dollars in thousands, except per share data)

Year-Over Year

Linked Quarter

Year-to-Date

3 Months Ended

3 Months Ended

6 Months Ended

Jun-26

Jun-25

Change

Mar-26

Change

Jun-26

Jun-25

Change

Pre Provision Net Revenue (PPNR)

$

13,626

$

8,932

$

4,694

$

11,445

$

2,181

$

25,071

$

8,932

$

16,139

Net income

$

9,370

$

6,324

$

3,046

$

7,811

$

1,559

$

17,181

$

12,097

$

5,085

Diluted earnings per share

$

0.86

$

0.69

$

0.17

$

0.72

$

0.14

$

1.59

$

1.31

$

0.28

Return on average assets

1.29%

1.08%

21 bps

1.10%

19bps

1.20%

1.04%

16bps

Return on average tangible equity

15.11%

13.08%

203 bps

12.65%

246 bps

13.88%

12.75%

126 bps

**Discussion of financial results for the three months ended June 30, 2026 (all comparisons are to second quarter 2025, unless otherwise noted):**

-   Net income was $9.3 million, an increase of $3.1 million from $6.2 million. Diluted earnings per share were $0.86 compared to $0.67.
-   Net interest income was $26.8 million, an increase of $7.8 million from $19.1 million. On a linked-quarter basis, net interest income increased $2.3 million from $24.6 million.
-   Net interest margin (fully taxable equivalent) was 3.90% compared to 3.43%. On a linked-quarter basis, NIM increased 22 basis points from 3.68%.
-   Pre-provision net revenue (PPNR) was $13.6 million, compared to $8.8 million in the prior-year quarter and $6.3 million in the linked quarter.
-   Total assets were $2.908 billion, compared to $2.365 billion, an increase of 22.9%.
-   Loans receivable were $2.263 billion compared to $1.791 billion, an increase of 26.4%.
-   Total deposits were $2.514 billion compared to $1.998 billion, an increase of 25.8%.
-   Tangible book value per share was $22.96 compared to $21.17 at June 30, 2025, and increased $0.54 on a linked-quarter basis from $22.43.
-   Allowance for credit losses to total loans was 1.13%. Nonperforming loans to total loans were 1.23% and nonperforming assets to total assets were 0.98%.

**Credit Quality**

During the second quarter of 2026, the Company recorded net charge-offs of approximately $1.4 million, including a $729 thousand charge-off related to a previously disclosed borrower relationship that filed for Chapter 11 bankruptcy protection during June 2026. The relationship consists of five loans to four borrower entities with aggregate exposure of approximately $22 million to the Bank and is primarily secured by commercial real estate. The Company continues to evaluate the potential loss exposure associated with the relationship, monitor the bankruptcy proceedings, and assess underlying collateral values. Management believes the allowance for credit losses remains appropriate based on information currently available.

**About Norwood Financial Corp**

Norwood Financial Corp, through its subsidiary, Wayne Bank operates 33 Community Offices serving Wayne, Pike, Monroe, Lackawanna, Luzerne, Chester, Cumberland, and Lancaster Counties in Pennsylvania, along with Delaware, Sullivan, Otsego, Ontario, and Yates Counties in New York. The Company has total assets of $2.9 billion. The Company’s stock is traded on the Nasdaq Global Market under the symbol “NWFL”. For more information, visit wayne.bank.

**Forward-Looking Statements**

In addition to historical information, this earnings release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which describes the future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “contemplate,” “continue,” “target” and words of similar meaning. Forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, you should not place undue reliance on such statements. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this report. Those risks and uncertainties include, among other things, changes in federal and state laws, changes in interest rates, our ability to maintain strong credit quality metrics, our ability to have future performance, our ability to control core operating expenses and costs, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

**Non-GAAP Measures**

In addition to presenting information in conformity with accounting principles generally accepted in the United States of America (GAAP), this news release contains financial information determined by methods other than GAAP (non-GAAP). The following measures used in this release, which are commonly utilized by financial institutions, have not been specifically exempted by the Securities and Exchange Commission ("SEC") and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules.

The Company has provided in this news release supplemental disclosures for the calculation of Return on Average Assets, Return on Average Tangible Shareholders’ Equity, Basic Earnings per Share, Diluted Earnings per Share, Tangible Book Value and Pre Provision Net Revenue. Management believes that the non-GAAP financial measures disclosed by the Company from time to time are useful in evaluating the Company’s performance and that such information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Our non-GAAP financial measures may differ from similar measures presented by other companies.

Contact:

John M. McCaffery  
Executive Vice President &  
Chief Financial Officer  
NORWOOD FINANCIAL CORP  
272-304-3003  
www.waynebank.com

**NORWOOD FINANCIAL CORP**  

**Consolidated Balance Sheets**  

**(dollars in thousands, except share and per share data)**  

**(unaudited)**  

**June 30**

**2026**  

2025  

ASSETS

Cash and due from banks

**$**

**30,902**

$

32,052

Interest-bearing deposits with banks

**29,387**

20,993

Fed funds sold

**0**

0

Cash and cash equivalents

**60,289**

53,045

Securities available for sale

**438,967**

402,460

Loans receivable

**2,262,813**

1,790,574

Less: Allowance for credit losses

**25,632**

20,908

Net loans receivable

**2,237,181**

1,769,666

Regulatory stock, at cost

**6,399**

7,538

Bank premises and equipment, net

**25,262**

21,608

Bank owned life insurance

**55,404**

46,099

Foreclosed real estate owned

**771**

\-

Accrued interest receivable

**10,568**

8,642

Deferred tax assets, net

**19,979**

17,693

Goodwill

**36,375**

29,266

Other intangible assets

**3,153**

121

Other assets

**13,566**

9,212

TOTAL ASSETS

**$**

**2,907,914**

$

2,365,350

LIABILITIES

Deposits:

Non-interest bearing demand

**$**

**500,383**

$

406,358

Interest-bearing

**2,013,914**

1,591,476

Total deposits

**2,514,297**

1,997,834

Short-term borrowings

**\-**

26,500

Other borrowings

**65,513**

85,350

Accrued interest payable

**8,668**

10,975

Other liabilities

**29,796**

19,266

TOTAL LIABILITIES

**2,618,274**

2,139,925

STOCKHOLDERS' EQUITY

Preferred Stock, no par value per share, authorized 5,000,000 shares

**\-**

\-

Common Stock, $.10 par value per share,

authorized: 20,000,000 shares,

issued: 2026: 11,182,591 shares, 2025: 9,490,505 shares

**1,118**

949

Surplus

**174,337**

126,990

Retained earnings

**146,685**

131,199

Treasury stock, at cost: 2026: 290,841 shares, 2025: 229,983 shares

**(7,957**

**)**

(6,208

)

Accumulated other comprehensive loss

**(24,543**

**)**

(27,505

)

TOTAL STOCKHOLDERS' EQUITY

**289,640**

225,425

TOTAL LIABILITIES AND

STOCKHOLDERS' EQUITY

**$**

**2,907,914**

$

2,365,350

**NORWOOD FINANCIAL CORP**  

**Consolidated Statements of Income**  

**(dollars in thousands, except per share data)**  

**(unaudited)**  

Three Months Ended June 30,

Six Months Ended June 30,  

**2026**

2025  

**2026**  

2025  

INTEREST INCOME

Loans receivable, including fees

**$**

**35,585**

$

27,115

**$**

**69,458**

$

53,103

Securities

**4,495**

3,871

**8,605**

7,742

Other

**377**

220

**777**

446

Total Interest income

**40,457**

31,206

**78,840**

61,291

INTEREST EXPENSE

Deposits

**12,899**

10,869

**25,686**

21,617

Short-term borrowings

**32**

211

**92**

669

Other borrowings

**687**

1,061

**1,669**

2,082

Total Interest expense

**13,618**

12,141

**27,447**

24,368

NET INTEREST INCOME

**26,839**

19,065

**51,393**

36,923

PROVISION FOR CREDIT LOSSES

**1,944**

950

**3,403**

1,807

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

**24,895**

18,115

**47,990**

35,116

OTHER INCOME

Service charges and fees

**1,666**

1,514

**3,421**

3,027

Income from fiduciary activities

**248**

226

**486**

551

Gains on sales of loans, net

**54**

65

**131**

112

Earnings and proceeds on life insurance policies

**326**

266

**640**

552

Other

**232**

177

**564**

357

Total other income

**2,526**

2,248

**5,242**

4,599

OTHER EXPENSES

Salaries and employee benefits

**8,674**

6,605

**17,223**

13,077

Occupancy, furniture and equipment

**1,569**

1,349

**3,294**

2,727

Data processing and related operations

**1,576**

1,189

**3,010**

2,274

Taxes, other than income

**174**

192

**376**

385

Professional fees

**596**

473

**1,422**

1,132

FDIC Insurance assessment

**428**

355

**935**

761

Foreclosed real estate

**31**

137

**67**

141

Amortization of intangibles

**165**

15

**331**

30

Merger

**53**

150

**4,994**

150

Other

**2,526**

2,066

**5,131**

3,918

Total other expenses

**15,792**

12,531

**36,783**

24,595

INCOME BEFORE TAX EXPENSE

**11,629**

7,832

**16,449**

15,120

INCOME TAX EXPENSE

**2,301**

1,627

**3,391**

3,142

NET INCOME

**$**

**9,328**

$

6,205

**$**

**13,058**

$

11,978

Basic earnings per share

**$**

**0.86**

$

0.67

**$**

**1.21**

$

1.30

Diluted earnings per share

**$**

**0.86**

$

0.67

**$**

**1.21**

$

1.30

**NORWOOD FINANCIAL CORP**  

**NET INTEREST MARGIN ANALYSIS (unaudited)**  

**(dollars in thousands)**  

**For the Quarter Ended**

**June 30, 2026**

**March 31, 2026**

**June 30, 2025**

**Average**

**Average**

**Average**

**Average**

**Average**

**Average**

**Balance**

**Interest**

**Rate**

**Balance**

**Interest**

**Rate**

**Balance**

**Interest**

**Rate**

(2)

(1)

(3)

(2)

(1)

(3)

(2)

(1)

(3)

**Assets**

**Interest-earning assets:**

Fed funds sold

$

1,511

14

3.72

%

$

933

11

4.78

%

$

%

Interest-bearing deposits with banks

43,467

$

364

3.36

72,896

$

389

2.16

19,085

$

220

4.62

Securities available for sale:

Taxable

435,004

4,246

3.92

415,567

3,859

3.77

404,428

3,624

3.59

Tax-exempt (1)

44,269

315

2.85

44,634

318

2.89

44,158

312

2.83

Total securities available for sale (1)

479,273

4,561

3.82

460,201

4,177

3.68

448,586

3,936

3.52

Loans receivable (1) (4) (5)

2,253,991

35,700

6.35

2,195,033

33,999

6.28

1,783,626

27,249

6.13

**Total interest-earning assets**

2,778,242

40,639

5.87

2,729,063

38,576

5.73

2,251,297

31,405

5.60

**Non-interest earning assets:**

Cash and due from banks

30,147

30,663

30,323

Allowance for credit losses

(24,556

)

(23,391

)

(20,733

)

Other assets

129,320

131,739

94,922

**Total non-interest earning assets**

134,911

139,011

104,512

**Total Assets**

$

2,913,153

$

2,868,074

$

2,355,809

**Liabilities and Stockholders' Equity**

**Interest-bearing liabilities:**

Interest-bearing demand and money market

$

727,580

$

3,460

1.91

$

723,966

$

3,462

1.94

$

573,904

$

2,887

2.02

Savings

231,852

200

0.35

218,829

137

0.25

204,318

119

0.23

Time

1,071,210

9,239

3.46

1,040,656

9,188

3.58

821,725

7,863

3.84

**Total interest-bearing deposits**

2,030,642

12,899

2.55

1,983,451

12,787

2.61

1,599,947

10,869

2.72

Short-term borrowings

3,233

32

3.97

6,358

60

3.83

17,757

211

4.77

Other borrowings

67,802

687

4.06

95,152

982

4.19

95,792

1,061

4.44

**Total interest-bearing liabilities**

2,101,677

13,618

2.60

2,084,961

13,829

2.69

1,713,496

12,141

2.84

**Non-interest bearing liabilities:**

Demand deposits

486,557

458,126

389,323

Other liabilities

36,585

35,188

29,639

**Total non-interest bearing liabilities**

523,142

493,314

418,962

Stockholders' equity

288,334

289,799

223,351

**Total Liabilities and Stockholders' Equity**

$

2,913,153

$

2,868,074

$

2,355,809

Net interest income/spread (tax equivalent basis)

27,021

3.27

%

24,747

3.04

%

19,264

2.75

%

Tax-equivalent basis adjustment

(182

)

(193

)

(199

)

Net interest income

$

26,839

$

24,554

$

19,065

Net interest margin (tax equivalent basis)

3.90

%

3.68

%

3.43

%

(1) Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%.  

(2) Average balances have been calculated based on daily balances.  

(3) Annualized  

(4) Loan balances include non-accrual loans and are net of unearned income.  

(5) Loan yields include the effect of amortization of deferred fees, net of costs.  

**NORWOOD FINANCIAL CORP**  

**NET INTEREST MARGIN ANALYSIS (unaudited)**  

**(dollars in thousands)**  

**Year to Date**

**June 30, 2026**

**June 30, 2025**

**Average**

**Average**

**Average**

**Average**

**Balance**

**Interest**

**Rate**

**Balance**

**Interest**

**Rate**

(2)

(1)

(3)

(2)

(1)

(3)

**Assets**

**Interest-earning assets:**

Fed funds sold

$

1,226

25

4.11

%

$

%

Interest-bearing deposits with banks

58,074

$

753

2.61

19,939

$

446

4.51

Securities available for sale:

Taxable

425,350

8,104

3.84

406,416

7,247

3.60

Tax-exempt (1)

44,451

633

2.87

44,199

626

2.86

Total securities available for sale (1)

469,801

8,737

3.75

450,615

7,873

3.52

Loans receivable (1) (4) (5)

2,224,699

69,700

6.32

1,763,710

53,369

6.10

**Total interest-earning assets**

2,753,800

79,215

5.80

2,234,264

61,688

5.57

**Non-interest earning assets:**

Cash and due from banks

30,409

29,519

Allowance for credit losses

(23,976

)

(20,445

)

Other assets

130,526

94,031

**Total non-interest earning assets**

136,959

103,105

**Total Assets**

$

2,890,759

$

2,337,369

**Liabilities and Stockholders' Equity**

**Interest-bearing liabilities:**

Interest-bearing demand and money market

$

725,787

$

6,922

1.92

$

560,469

$

5,688

2.05

Savings

225,380

337

0.30

208,090

261

0.25

Time

1,056,053

18,427

3.52

807,841

15,668

3.91

**Total interest-bearing deposits**

2,007,220

25,686

2.58

1,576,400

21,617

2.77

Short-term borrowings

4,782

92

3.88

30,954

669

4.36

Other borrowings

81,395

1,669

4.13

94,676

2,082

4.43

**Total interest-bearing liabilities**

2,093,397

27,447

2.64

1,702,030

24,368

2.89

**Non-interest bearing liabilities:**

Demand deposits

472,412

384,958

Other liabilities

35,886

29,594

**Total non-interest bearing liabilities**

508,297

414,552

Stockholders' equity

289,064

220,787

**Total Liabilities and Stockholders' Equity**

$

2,890,759

$

2,337,369

Net interest income/spread (tax equivalent basis)

51,768

3.16

%

37,320

2.68

%

Tax-equivalent basis adjustment

(375

)

(397

)

Net interest income

$

51,393

$

36,923

Net interest margin (tax equivalent basis)

3.79

%

3.37

%

(1) Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%.  

(2) Average balances have been calculated based on daily balances.  

(3) Annualized  

(4) Loan balances include non-accrual loans and are net of unearned income.  

(5) Loan yields include the effect of amortization of deferred fees, net of costs.  

**NORWOOD FINANCIAL CORP**  

**Financial Highlights (Unaudited)**  

**(dollars in thousands, except per share data)**  

**For the Three Months Ended June 30**

**2026**  

2025  

Net interest income

$

**26,839**

$

19,065

Net income

**9,328**

6,205

Net interest spread (fully taxable equivalent)

**3.27**

**%**

2.75

%

Net interest margin (fully taxable equivalent)

**3.90**

**%**

3.43

%

Return on average assets

**1.28**

**%**

1.06

%

Return on average equity

**12.98**

**%**

11.14

%

Return on average tangible equity

**15.04**

**%**

12.83

%

Basic earnings per share

$

**0.86**

$

0.67

Diluted earnings per share

$

**0.86**

$

0.67

**For the Six Months Ended June 30**

**2026**  

2025  

Net interest income

**51,393**

36,923

Net income

**13,058**

11,978

Net interest spread (fully taxable equivalent)

**3.16**

**%**

2.68

%

Net interest margin (fully taxable equivalent)

**3.79**

**%**

3.37

%

Return on average assets

**0.91**

**%**

1.03

%

Return on average equity

**9.11**

**%**

10.94

%

Return on average tangible equity

**10.55**

**%**

12.62

%

Basic earnings per share

**1.21**

1.30

Diluted earnings per share

**1.21**

1.30

**As of June 30**

**2026**  

2025  

Total assets

$

**2,907,914**

$

2,365,350

Total loans receivable

**2,262,813**

1,790,574

Allowance for credit losses

**25,632**

20,908

Total deposits

**2,514,297**

1,997,834

Stockholders' equity

**289,640**

225,425

Trust assets under management

**242,164**

207,402

Book value per share

$

**26.59**

$

24.34

Tangible book value per share

$

**22.96**

$

21.17

Equity to total assets

**9.96**

**%**

9.53

%

Allowance to total loans receivable

**1.13**

**%**

1.17

%

Nonperforming loans to total loans

**1.21**

**%**

0.45

%

Nonperforming assets to total assets

**0.97**

**%**

0.34

%

**NORWOOD FINANCIAL CORP**  

**Consolidated Balance Sheets (unaudited)**  

**(dollars in thousands)**  

June 30

March 31

December 31

September 30

June 30

2026  

2026  

2025  

2025  

2025  

ASSETS

Cash and due from banks

$

30,902

$

25,480

$

32,118

$

50,348

$

32,052

Interest-bearing deposits with banks

29,387

75,258

12,318

24,382

20,993

Fed funds sold

0

1,835

Cash and cash equivalents

60,289

102,573

44,436

74,730

53,045

Securities available for sale

438,967

431,204

408,782

403,989

402,460

Loans receivable

2,262,813

2,238,657

1,853,422

1,814,682

1,790,574

Less: Allowance for credit losses

25,632

24,350

19,882

19,911

20,908

Net loans receivable

2,237,181

2,214,307

1,833,540

1,794,771

1,769,666

Regulatory stock, at cost

6,399

7,161

6,623

6,163

7,538

Bank owned life insurance

55,404

55,078

46,089

45,821

46,099

Bank premises and equipment, net

25,262

25,299

22,971

22,292

21,608

Foreclosed real estate owned

771

771

771

\-

\-

Goodwill and other intangibles

39,528

39,693

29,364

29,375

29,387

Other assets

44,113

41,168

32,266

34,810

35,547

TOTAL ASSETS

$

2,907,914

$

2,917,254

$

2,424,842

$

2,411,951

$

2,365,350

LIABILITIES

Deposits:

Non-interest bearing demand

$

500,383

$

470,706

$

419,597

$

424,027

$

406,358

Interest-bearing deposits

2,013,914

2,035,992

1,659,048

1,649,941

1,591,476

Total deposits

2,514,297

2,506,698

2,078,645

2,073,968

1,997,834

Borrowings

65,513

88,268

74,133

72,071

111,850

Other liabilities

38,464

38,350

29,907

31,007

30,241

TOTAL LIABILITIES

2,618,274

2,633,316

2,182,685

2,177,046

2,139,925

STOCKHOLDERS' EQUITY

289,640

283,938

242,157

234,905

225,425

TOTAL LIABILITIES AND

STOCKHOLDERS' EQUITY

$

2,907,914

$

2,917,254

$

2,424,842

$

2,411,951

$

2,365,350

**NORWOOD FINANCIAL CORP**  

**Consolidated Statements of Income (unaudited)**  

**(dollars in thousands, except per share data)**  

June 30

March 31

December 31

September 30

June 30

Three months ended

2026  

2026  

2025  

2025  

2025  

INTEREST INCOME

Loans receivable, including fees

$

35,585

$

33,873

$

28,666

$

28,141

$

27,115

Securities

4,495

4,110

3,906

3,907

3,871

Other

377

400

474

144

220

Total interest income

40,457

38,383

33,046

32,192

31,206

INTEREST EXPENSE

Deposits

12,899

12,787

11,334

10,730

10,869

Borrowings

719

1,042

768

1,004

1,272

Total interest expense

13,618

13,829

12,102

11,734

12,141

NET INTEREST INCOME

26,839

24,554

20,944

20,458

19,065

PROVISION FOR (RELEASE OF) CREDIT LOSSES

1,944

1,459

468

(502

)

950

NET INTEREST INCOME AFTER (RELEASE OF) PROVISION

FOR CREDIT LOSSES

24,895

23,095

20,476

20,960

18,115

OTHER INCOME

Service charges and fees

1,666

1,755

1,734

1,660

1,514

Income from fiduciary activities

248

238

228

254

226

Net realized (losses) gains on sales of securities

\-

\-

\-

\-

\-

Gains on sales of loans, net

54

76

83

130

65

Gains on sales of foreclosed real estate owned

\-

\-

\-

\-

\-

Earnings and proceeds on life insurance policies

326

314

268

268

266

Other

232

332

198

193

177

Total other income

2,526

2,715

2,511

2,505

2,248

OTHER EXPENSES

Salaries and employee benefits

8,674

8,549

7,155

6,696

6,605

Occupancy, furniture and equipment, net

1,569

1,725

1,390

1,361

2,538

Foreclosed real estate

31

36

\-

1

137

FDIC insurance assessment

428

507

423

368

355

Other

5,090

10,173

4,651

4,508

2,896

Total other expenses

15,792

20,990

13,619

12,934

12,531

INCOME BEFORE TAX (BENEFIT) EXPENSE

11,629

4,820

9,368

10,531

7,832

INCOME TAX (BENEFIT) EXPENSE

2,301

1,090

1,926

2,197

1,627

NET (LOSS) INCOME

$

9,328

$

3,730

$

7,442

$

8,334

$

6,205

Basic (loss) earnings per share

$

0.86

$

0.35

$

0.81

$

0.89

$

0.67

Diluted (loss) earnings per share

$

0.86

$

0.35

$

0.81

$

0.89

$

0.67

Book Value per share

$

26.59

$

26.07

$

26.06

$

25.36

$

24.34

Tangible Book Value per share

22.96

22.43

22.90

22.19

21.17

Return on average assets (annualized)

1.28

%

0.53

%

1.21

%

1.40

%

1.06

%

Return on average equity (annualized)

12.98

%

5.22

%

12.30

%

14.58

%

11.14

%

Return on average tangible equity (annualized)

15.04

%

6.04

%

14.01

%

16.76

%

12.83

%

Net interest spread (fte)

3.27

%

3.04

%

2.93

%

2.94

%

2.75

%

Net interest margin (fte)

3.90

%

3.68

%

3.60

%

3.63

%

3.43

%

Allowance for credit losses to total loans

1.13

%

1.09

%

1.07

%

1.10

%

1.17

%

Net charge-offs to average loans (annualized)

0.24

%

0.09

%

0.13

%

0.13

%

0.08

%

Nonperforming loans to total loans

1.21

%

0.46

%

0.34

%

0.36

%

0.45

%

Nonperforming assets to total assets

0.97

%

0.38

%

0.29

%

0.31

%

0.34

%

Nonperforming loans to total assets

0.94

%

0.35

%

0.26

%

0.27

%

0.34

%

Loan Loss Reserve/NPAs

91.13

%

219.93

%

279.62

%

270.50

%

258.43

%

**NORWOOD FINANCIAL CORP**  

**Reconciliation of Non-GAAP Results (unaudited)**  

**(dollars in thousands, except per share data)**  

**Net Interest Income FTE**  

(dollars in thousands)  

**Three months ended**

**Six months ended**

**June 30**

**June 30**

2026  

2025  

2026  

2025  

Net Interest Income

$

26,839

$

19,065

$

51,393

$

36,923

Taxable equivalent basis adjustment using 21% marginal tax rate

182

199

375

397

Net interest income on a fully taxable equivalent basis

$

27,021

$

19,264

$

51,768

$

37,320

**Average Tangible Equity**  

(dollars in thousands)  

**Three months ended**

**Six months ended**

**June 30**

**June 30**

2026  

2025  

2026  

2025  

Average equity

$

288,334

$

223,351

$

289,064

$

220,787

Average goodwill and other intangibles

(39,609

)

(29,394

)

(39,472

)

(29,402

)

Average tangible equity

$

248,725

$

193,957

$

249,592

$

191,385

**NORWOOD FINANCIAL CORP**  

**Reconciliation of Non-GAAP Results**  

**(dollars in thousands, except per share data)**  

**Pre Provision Net Revenue**

(Dollars in thousands)

**Six Months**

**Three Months**

**Three Months**

**Six Months**

**Three Months**

**Ended**

**Ended**

**Ended**

**Ended**

**Ended**

**June 30,**

**June 30,**

**March 31,**

**June 30,**

**June 30,**

**2026**

**2026**

**2026**

**2025**

**2025**

Income before tax expense (GAAP)

$

16,449

$

11,629

$

4,820

$

15,120

$

7,832

Provision for credit losses

3,403

1,944

1,459

1,807

950

**Pre provision net revenue (PPNR) (Non-GAAP)**

**19,852**

**13,573**

**6,279**

**16,927**

**8,782**

Merger-related expenses

4,994

53

4,941

150

150

BOLI restructuring fee

225

0

225

0

0

**PPNR adjusted for one time expenses (Non-GAAP)**

**25,071**

**13,626**

**11,445**

**17,077**

**8,932**

**NORWOOD FINANCIAL CORP**  

**Reconciliation of Non-GAAP Results (unaudited)**  

**(dollars in thousands, except per share data)**  

**Adjusted Return on Average Assets**

(Dollars in thousands)

**Six Months**

**Three Months**

**Three Months**

**Six Months**

**Three Months**

**Ended**

**Ended**

**Ended**

**Ended**

**Ended**

**June 30,**

**June 30,**

**March 31,**

**June 30,**

**June 30,**

**2026**

**2026**

**2026**

**2025**

**2025**

Net income

$

13,058

$

9,328

$

3,730

$

11,978

$

6,205

Average assets

2,890,759

2,913,153

2,868,074

2,337,369

2,355,809

**Return on average assets (annualized)**

**0.91**

**%**

**1.28**

**%**

**0.53**

**%**

**1.03**

**%**

**1.06**

**%**

Net income

13,058

9,328

3,730

11,978

6,205

Merger-related expenses

4,994

53

4,941

150

150

Boli restructuring fee

225

0

225

0

0

Tax effect at 21%

(1,096

)

(11

)

(1,085

)

(32

)

(32

)

Adjusted Net Income (Non-GAAP)

17,181

9,370

7,811

12,097

6,324

Average assets

2,890,759

2,913,153

2,868,074

2,337,369

2,355,809

**Adjusted return on average assets (annualized)**

**(Non-GAAP)**

**1.20**

**%**

**1.29**

**%**

**1.10**

**%**

**1.04**

**%**

**1.08**

**%**

**Adjusted Return on Average Tangible Shareholders' Equity**

(Dollars in thousands)

**Six Months**

**Three Months**

**Three Months**

**Six Months**

**Three Months**

**Ended**

**Ended**

**Ended**

**Ended**

**Ended**

**June 30,**

**June 30,**

**March 31,**

**June 30,**

**June 30,**

**2026**

**2026**

**2026**

**2025**

**2025**

Net income

$

13,058

$

9,328

$

3,730

$

11,978

$

6,205

Average shareholders' equity

289,064

288,334

289,799

220,787

223,351

Average intangible assets

(39,472

)

(39,609

)

(39,334

)

(29,402

)

(29,394

)

Average tangible shareholders' equity

249,592

248,725

250,465

191,385

193,957

**Return on average tangible shareholders' equity (annualized)**

**10.55**

**%**

**15.04**

**%**

**6.04**

**%**

**12.62**

**%**

**12.83**

**%**

Net income

13,058

9,328

3,730

11,978

6,205

Merger-related expenses

4,994

53

4,941

150

150

Boli restructuring fee

225

0

225

0

0

Tax effect at 21%

(1,096

)

(11

)

(1,085

)

(32

)

(32

)

Adjusted Net Income (Non-GAAP)

17,181

9,370

7,811

12,097

6,324

Average tangible shareholders' equity

249,592

248,725

250,465

191,385

193,957

**Adjusted return on average shareholders' equity (annualized)**

**(Non-GAAP)**

**13.88**

**%**

**15.11**

**%**

**12.65**

**%**

**12.75**

**%**

**13.08**

**%**

**Adjusted Earnings Per Share**

(Dollars in thousands)

**Six Months**

**Three Months**

**Three Months**

**Six Months**

**Three Months**

**Ended**

**Ended**

**Ended**

**Ended**

**Ended**

**June 30,**

**June 30,**

**March 31,**

**June 30,**

**June 30,**

**2026**

**2026**

**2026**

**2025**

**2025**

**GAAP-Based Earnings Per Share, Basic**

$

**1.21**

$

**0.86**

$

**0.35**

$

**1.30**

$

**0.67**

**GAAP-Based Earnings Per Share, Diluted**

$

**1.21**

$

**0.86**

$

**0.35**

$

**1.30**

$

**0.67**

Net Income

13,058

9,328

3,730

11,978

6,205

Merger-related expenses

4,994

53

4,941

150

150

Boli restructuring fee

225

0

225

0

0

Tax effect at 21%

(1,096

)

(11

)

(1,085

)

(32

)

(32

)

Adjusted Net Income (Non-GAAP)

17,181

9,370

7,811

12,097

6,324

**Adjusted Earnings per Share, Basic (Non-GAAP)**

$

**1.59**

$

**0.86**

$

**0.73**

$

**1.31**

$

**0.69**

**Adjusted Earnings per Share, Diluted (Non-GAAP)**

$

**1.59**

$

**0.86**

$

**0.72**

$

**1.31**

$

**0.69**

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