Norwood Financial Corp announces Second Quarter Financial Results

Rhea-AI Summary

Norwood Financial Corp (Nasdaq: NWFL) reported second quarter 2026 net income of $9.3 million and diluted EPS of $0.86, with record net interest income of $26.8 million and a fully taxable equivalent net interest margin of 3.90%, up from 3.43% a year earlier.

Total assets reached $2.908 billion, loans $2.263 billion, and deposits $2.514 billion, representing year-over-year growth of 22.9%, 26.4%, and 25.8%, respectively. Pre-provision net revenue was $13.6 million versus $8.8 million in 2025. Tangible book value per share rose to $22.96, above both $21.17 at June 30, 2025 and the pre-acquisition level of $22.90. Credit metrics included an allowance for credit losses at 1.13% of loans, nonperforming loans at 1.23% of loans, and nonperforming assets at 0.98% of assets. The Company also reported successful completion of the Presence Bancshares integration.

Positive

• Net income $9.3M in Q2 2026, up $3.1M from $6.2M
• Net interest income $26.8M vs $19.1M; NIM 3.90% vs 3.43% YoY
• Pre-provision net revenue $13.6M vs $8.8M prior-year quarter
• Total assets $2.91B, loans $2.26B, deposits $2.51B, each up over 22%
• Tangible book value per share $22.96 vs $21.17 and above pre-acquisition $22.90
• Return on tangible equity 15.04% and ROA 1.28% for Q2 2026

Negative

• Provision for credit losses $1.94M vs $0.95M in prior-year quarter
• Net charge-offs about $1.4M in Q2 2026, including $729K on a bankrupt borrower relationship
• Nonperforming loans 1.23% of total loans; NPAs 0.98% of total assets
• Other expenses $15.8M vs $12.5M, with higher salaries, data processing, and amortization
• Year-to-date diluted EPS $1.21 for 2026 vs $1.30 for 2025

News Explained

The quarter included $1.4 million of net charge-offs, including $729 thousand tied to a borrower relationship with approximately $22 million of exposure; Norwood is still evaluating collateral and potential loss, leaving the effect on existing holders unresolved.

News Market Reaction – NWFL

-1.97%

7 alerts

-1.97% Session close to close

+9.3% Peak in 29 hr 30 min

$340.23M Market Cap

0.8x Rel. Volume

In the Jul 22 session, NWFL declined 1.97%, reflecting a mild negative market reaction. Argus tracked a peak move of +9.3% during that session. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

Insider records showed 2,197 shares bought and zero sold during the analyzed period. Against that ba...

Analysis

Insider records showed 2,197 shares bought and zero sold during the analyzed period. Against that backdrop, this earnings report's profitability and credit metrics warrant attention to whether operating gains persist alongside loan-loss developments.

Key Figures

Net income: $9.3 million Net interest income: $26.8 million Diluted EPS: $0.86 +5 more

8 metrics

Net income $9.3 million Second quarter 2026; record result

Net interest income $26.8 million Second quarter 2026; record result

Diluted EPS $0.86 Second quarter 2026, compared with $0.67 prior year

Total assets $2.908 billion June 30, 2026

Net interest margin 3.90% Second quarter 2026, compared with 3.43% prior year

Tangible book value per share $22.96 June 30, 2026; compared with $22.90 pre-acquisition

Net charge-offs approximately $1.4 million Second quarter 2026

Borrower relationship exposure approximately $22 million Five loans to four entities; primarily commercial real estate

Previous Earnings Reports

5 past events · Latest: Apr 27 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 27	First-quarter earnings	Positive	-5.3%	Reported first-quarter results, acquisition completion, and integration-related financial metrics.
Jan 22	Full-year earnings	Positive	-2.0%	Reported 2025 earnings, balance-sheet growth, margin improvement, and acquisition completion.
Oct 22	Third-quarter earnings	Positive	+6.8%	Reported higher diluted EPS, profitability, balance-sheet growth, and improved efficiency.
Jul 22	Second-quarter earnings	Positive	+1.2%	Reported higher net income, EPS, margin, assets, loans, and deposits.
Apr 17	First-quarter earnings	Positive	+2.5%	Reported higher EPS, net income, margin, assets, loans, and deposits.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Positive earnings announcements were followed by positive 24-hour reactions in three of five tag-matched events, while two positive reports were followed by declines.

Key Terms

net interest margin, tangible book value per share, pre-provision net revenue, net charge-offs, +1 more

5 terms

net interest margin financial

"Net interest margin (fully taxable equivalent) was 3.90% compared to 3.43%."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

tangible book value per share financial

"Tangible book value per share was $22.96 compared to $21.17"

Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.

pre-provision net revenue financial

"Pre-provision net revenue (PPNR) was $13.6 million"

Pre-provision net revenue is a bank’s income from core operations — interest earned minus interest paid plus fees and other operating income, after operating costs — measured before setting aside funds for potential loan losses. Investors use it to gauge how well a bank’s everyday business generates money independent of one-time loss reserves, like judging a store’s sales and operating profit before accounting for an expected number of returned items.

net charge-offs financial

"the Company recorded net charge-offs of approximately $1.4 million"

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

nonperforming loans financial

"Nonperforming loans to total loans were 1.23%"

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

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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

FAQ

How did Norwood Financial (NWFL) perform in Q2 2026?

Norwood Financial reported Q2 2026 net income of $9.3 million and diluted EPS of $0.86. According to the company, results included record net interest income of $26.8 million and a fully taxable equivalent net interest margin of 3.90%, up from 3.43% a year earlier.

What were Norwood Financial’s key balance sheet figures as of June 30, 2026?

As of June 30, 2026, Norwood Financial reported $2.908 billion in total assets, loans of $2.263 billion, and deposits of $2.514 billion. According to the company, these represent year-over-year increases of 22.9% for assets, 26.4% for loans, and 25.8% for deposits.

How did Norwood Financial’s credit quality metrics look in Q2 2026?

Norwood Financial reported an allowance for credit losses of 1.13% of total loans and nonperforming loans at 1.23% of total loans. According to the company, nonperforming assets were 0.98% of total assets, and management believes the allowance remains appropriate based on current information.

What impacted Norwood Financial’s provision and charge-offs in Q2 2026?

Norwood Financial recorded a $1.94 million provision for credit losses and approximately $1.4 million in net charge-offs in Q2 2026. According to the company, this included a $729 thousand charge-off tied to a previously disclosed borrower relationship that filed for Chapter 11 bankruptcy in June 2026.

How did Norwood Financial’s year-to-date 2026 earnings compare to 2025?

For the first six months of 2026, Norwood Financial reported net income of $13.1 million and diluted EPS of $1.21. According to the company, this compares with net income of $12.0 million and diluted EPS of $1.30 for the same period in 2025.

What was Norwood Financial’s tangible book value per share after the Presence Bancshares integration?

Tangible book value per share at June 30, 2026 was $22.96. According to Norwood Financial, this exceeded both the $21.17 level at June 30, 2025 and the pre-acquisition tangible book value per share of $22.90, following completion of the Presence Bancshares integration.

What profitability ratios did Norwood Financial (NWFL) report for Q2 2026?

In Q2 2026, Norwood Financial reported a return on average assets of 1.28% and return on tangible equity of 15.04%. According to the company, these figures exclude any separate non-GAAP adjustments and reflect improved profitability versus the linked quarter and prior-year period.