Norwood Financial Corp announces Third Quarter and Year-to-Date 2025 Results

Rhea-AI Summary

Norwood Financial Corp (Nasdaq: NWFL) reported results for the quarter and nine months ended September 30, 2025, showing marked profitability and balance-sheet growth. Diluted EPS was $0.89 for the quarter (an 85% increase YoY) and quarterly net income was $8.33 million vs. $3.84 million a year earlier. Return on average assets rose to 1.40% and return on average tangible equity improved to 16.76%. Total assets grew to $2.412 billion, loans to $1.815 billion (+8.3% YoY) and deposits to $2.074 billion (+11.8% YoY). Net interest margin was 3.63% and the efficiency ratio improved to 56.3%. Tangible book value per share increased to $22.19.

Positive

• Diluted EPS of $0.89, up 85% YoY
• Quarterly net income $8.33M, up $4.49M YoY
• Total deposits $2.074B, up 11.8% YoY
• Efficiency ratio improved to 56.3% from 66.0%
• Tangible book value per share increased $2.34 to $22.19

Negative

• Accumulated other comprehensive loss of $23.7M remains on the balance sheet
• Other borrowings declined $72.9M YoY to $72.1M, reducing reported wholesale borrowings

Insights

Regional bank financial analyst

Strong quarter: improving margins, higher earnings, loan and deposit growth boost capital and profitability.

Net income of $8.3 million and diluted EPS of $0.89 mark material year‑over‑year gains versus 3Q 2024; net interest margin widened to 3.63% and net interest income rose to $20.458 million, driven by higher asset yields and lower funding costs. Efficiency improved with the third‑quarter ratio at 56.3%, and pre‑provision net revenue expanded, supporting both earnings and retained capital.

Balance sheet trends underpin the operating results: loans increased to $1.815 billion (+8.3% YoY) and deposits to $2.074 billion (+11.8% YoY), while tangible common equity rose to 8.63% and tangible book value per share climbed to $22.19. The company also reported a release in the provision for credit losses, modest non‑interest income growth, and lower AOCI pressure contributing to capital improvement.

The main dependencies and near‑term risks are credit performance and interest rate movements: credit metrics improved but remain central to sustaining the provision trajectory; net interest margin gains depend on continued asset yield advantage and lower deposit costs. Watch quarterly loan growth, deposit cost trends, allowance movement (provision or releases), and the next quarter's net interest margin and efficiency ratio for confirmation within the next 1–2 quarters.

Quarterly and Year-to-Date Highlights:

• Fully diluted EPS of $0.89, an 85% increase over the same period in 2024
• Return on assets rose 72 basis points to 1.40% from 3Q 2024.
• Net interest margin increased 20 basis points vs. the prior quarter and 64 basis points over the prior year.
• Loans grew at a 5.4% and 7.3% annualized rate during the third quarter and year-to-date, respectively.
• Deposits grew year-to-date at an annualized rate of 15% while deposit costs fell 19 basis points since the 4^th quarter of 2024.
• Capital continues to improve on increased earnings and lower accumulated other comprehensive income (AOCI) adjustment.

HONESDALE, Pa., Oct. 22, 2025 (GLOBE NEWSWIRE) -- Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced results for the three months and nine months ended September 30, 2025.

Jim Donnelly, President and Chief Executive Officer, stated, “Our quarterly results continue to demonstrate the strength of our community banking franchise. We have been able to maintain solid growth, while improving profitability and efficiency.”

Mr. Donnelly continued, “Our disciplined approach to growth, improving margins, and credit quality have allowed us to deliver strong quarterly results for our shareholders. I am proud of the performance of the entire Norwood team as they remain focused on delivering the products and services that help our customers achieve their goals. We have improved our credit quality from already sound levels. This is a result of our well-managed and consistent approach to credit. We have also improved our fee income lines of business.”

“During the second quarter we launched our ‘Every Day Better’ brand to high acclaim from customers, employees, and community members. This full rebrand enabled us to articulate our values and mission, stand out from competitors, and unite and energize our company culture. Building on this great combination of a high-performing team and strong brand, I believe that we are on our way to creating a bright future for us, our customers, and our shareholders.”

Selected Financial Highlights (unaudited)

(dollars in thousands, except per share data)	Year-Over Year								Linked Quarter					Year-to-Date
	3 Months Ended								3 Months Ended					9 Months Ended
	Sep-25			Sep-24			Change		Jun-25			Change		Sep-25			Sep-24			Change
Net interest income	$	20,458		$	15,931		$	4,527	$	19,065		$	1,393	$	57,380		$	45,566		$	11,814
Net interest spread (fte)1		2.94%			2.23%		71 bps			2.75%		19 bps			2.77%			2.12%		65 bps
Net interest margin (fte)1		3.63%			2.99%		64 bps			3.43%		20 bps			3.46%			2.87%		59 bps
Pre Provision Net Revenue (PPNR)1	$	10,029		$	6,195		$	3,834	$	8,782		$	1,247	$	26,956		$	16,868		$	10,088
Net income	$	8,334		$	3,844		$	4,490	$	6,205		$	2,129	$	20,313		$	12,491		$	7,822
Diluted earnings per share	$	0.89		$	0.48		$	0.41	$	0.67		$	0.22	$	2.22		$	1.55		$	0.67
Return on average assets		1.40%			0.68%		72 bps			1.06%		34 bps			1.16%			0.75%		41 bps
Return on average tangible equity		16.76%			9.58%		718 bps			12.83%		393 bps			14.04%			10.82%		322 bps
1 - Non GAAP ratio. See Non-GAAP Reconciliation
Excluding merger charges (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					9 Months Ended
	Sep-25			Sep-24			Change		Jun-25			Change		Sep-25			Sep-24			Change
Pre Provision Net Revenue (PPNR)	$	10,597		$	6,195		$	4,402	$	8,932		$	1,665	$	27,674		$	16,868		$	10,806
Net income	$	8,783		$	3,844		$	4,939	$	6,324		$	2,460	$	20,880		$	12,491		$	8,389
Diluted earnings per share	$	0.94		$	0.48		$	0.46	$	0.69		$	0.25	$	2.28		$	1.55		$	0.73
Return on average assets		1.47%			0.68%		79 bps			1.08%		39 bps			1.19%			0.75%		44 bps
Return on average tangible equity		17.66%			9.58%		808 bps			13.08%		458 bps			14.43%			10.82%		361 bps

Discussion of financial results for the three months ended September 30, 2025:

• The Company had net income of $8.3 million for the three months ended September 30, 2025, an increase of $4.5 million over the same period last year.
• Net interest income increased during the third quarter of 2025 compared to the third quarter of 2024 due to increases in asset yields while interest costs of liabilities decreased.
• Correspondingly, the net interest margin in the third quarter of 2025 was 3.63% compared to 2.99% in the third quarter of 2024.
• Non-interest income in the first 9 months of 2025 increased $597 thousand or 9.2% over the same period in 2024.
• The efficiency ratio for the third quarter of 2025 was 56.3% compared to 66.0% in the third quarter of 2024.
• As of September 30, 2025, total assets were $2.412 billion, compared to $2.280 billion at September 30, 2024, an increase of 5.80%.
• Loans receivable were $1.815 billion at September 30, 2025, compared to $1.675 billion at September 30, 2024, an increase of 8.3%.
• Total deposits were $2.074 billion at September 30, 2025, compared to $1.855 billion at September 30, 2024, an increase of 11.8%.
• Tangible Common Equity was 8.63% as of September 30, 2025, versus 7.57% at September 30, 2024.
• Tangible Book Value per share increased $2.34 from $19.85 at December 31, 2024, to $22.19 at September 30, 2025.

Norwood Financial Corp is the parent company of Wayne Bank, which operates from fifteen offices throughout Northeastern Pennsylvania and fourteen offices in Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. The Company’s stock trades on the Nasdaq Global Market under the symbol “NWFL”.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words “believes”, “anticipates”, “contemplates”, “expects”, “bode”, “future performance”, “solid footing,” “good momentum,” “bright future”, “robust growth” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. 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.

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)
		September 30
		2025			2024
ASSETS
Cash and due from banks	$	50,348		$	47,072
Interest-bearing deposits with banks		24,382			35,808
Cash and cash equivalents		74,730			82,880
Securities available for sale		403,989			396,891
Loans receivable		1,814,682			1,675,139
Less: Allowance for credit losses		19,911			18,699
Net loans receivable		1,794,771			1,656,440
Regulatory stock, at cost		6,163			6,329
Bank premises and equipment, net		22,292			18,503
Bank owned life insurance		45,821			46,382
Foreclosed real estate owned		-			-
Accrued interest receivable		8,686			8,062
Deferred tax assets, net		16,528			18,818
Goodwill		29,266			29,266
Other intangible assets		109			167
Other assets		9,596			16,013
TOTAL ASSETS	$	2,411,951		$	2,279,751
LIABILITIES
Deposits:
Non-interest bearing demand	$	424,027		$	420,967
Interest-bearing		1,649,941			1,434,284
Total deposits		2,073,968			1,855,251
Short-term borrowings		-			52,453
Other borrowings		72,071			144,959
Accrued interest payable		9,823			12,688
Other liabilities		21,184			18,746
TOTAL LIABILITIES		2,177,046			2,084,097
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: 2025: 9,491,558 shares, 2024: 8,311,851 shares		949			831
Surplus		127,190			98,330
Retained earnings		136,662			140,489
Treasury stock, at cost: 2025: 229,233 shares, 2024: 221,140 shares		(6,188	)		(5,969	)
Accumulated other comprehensive loss		(23,708	)		(38,027	)
TOTAL STOCKHOLDERS' EQUITY		234,905			195,654
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$	2,411,951		$	2,279,751

NORWOOD FINANCIAL CORP
Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
	Three Months Ended September 30,							Nine Months Ended September 30,
		2025			2024				2025			2024
INTEREST INCOME
Loans receivable, including fees	$	28,141		$	25,464			$	81,244		$	73,266
Securities		3,907			2,526				11,648			7,635
Other		144			497				590			2,194
Total Interest income		32,192			28,487				93,482			83,095
INTEREST EXPENSE
Deposits		10,730			10,553				32,347			31,349
Short-term borrowings		105			323				774			1,015
Other borrowings		899			1,680				2,981			5,165
Total Interest expense		11,734			12,556				36,102			37,529
NET INTEREST INCOME		20,458			15,931				57,380			45,566
(RELEASE OF) PROVISION FOR CREDIT LOSSES		(502	)		1,345				1,305			1,069
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION FOR CREDIT LOSSES		20,960			14,586				56,075			44,497
OTHER INCOME
Service charges and fees		1,660			1,517				4,687			4,364
Income from fiduciary activities		254			256				805			719
Gains on sales of loans, net		130			103				242			145
Gains on sales of foreclosed real estate owned		-			-				-			32
Earnings and proceeds on life insurance policies		268			261				820			781
Other		193			158				551			467
Total other income		2,505			2,295				7,105			6,508
OTHER EXPENSES
Salaries and employee benefits		6,696			6,239				19,773			18,328
Occupancy, furniture and equipment		1,361			1,269				4,088			3,758
Data processing and related operations		1,087			1,162				3,361			3,208
Taxes, other than income		192			179				577			452
Professional fees		968			576				2,250			1,669
FDIC Insurance assessment		368			339				1,129			1,009
Foreclosed real estate		1			9				143			45
Amortization of intangibles		12			16				42			54
Other		2,249			2,242				6,166			6,683
Total other expenses		12,934			12,031				37,529			35,206
INCOME BEFORE TAX EXPENSE		10,531			4,850				25,651			15,799
INCOME TAX EXPENSE		2,197			1,006				5,338			3,308
NET INCOME	$	8,334		$	3,844			$	20,313		$	12,491
Basic earnings per share	$	0.89		$	0.48			$	2.22		$	1.55
Diluted earnings per share	$	0.89		$	0.48			$	2.22		$	1.55

NORWOOD FINANCIAL CORP
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)
	For the Quarter Ended
	September 30, 2025									June 30, 2025									September 30, 2024
	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:
Interest-bearing deposits with banks	$	12,485		$	144		4.58		%	$	19,085		$	220		4.62		%	$	36,221		$	497		5.46		%
Securities available for sale:
Taxable		399,090			3,661		3.64				404,428			3,624		3.59				392,168			2,161		2.19
Tax-exempt (1)		44,074			312		2.81				44,158			312		2.83				67,563			461		2.71
Total securities available for sale (1)		443,164			3,973		3.56				448,586			3,936		3.52				459,731			2,622		2.27
Loans receivable (1) (4) (5)		1,802,046			28,267		6.22				1,783,626			27,249		6.13				1,651,921			25,575		6.16
Total interest-earning assets		2,257,695			32,384		5.69				2,251,297			31,405		5.60				2,147,873			28,694		5.31
Non-interest earning assets:
Cash and due from banks		31,050									30,323									28,193
Allowance for credit losses		(21,128	)								(20,733	)								(17,944	)
Other assets		96,142									94,922									78,344
Total non-interest earning assets		106,064									104,512									88,593
Total Assets	$	2,363,759								$	2,355,809								$	2,236,466
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	579,145		$	2,900		1.99			$	573,904		$	2,887		2.02			$	461,897		$	2,782		2.40
Savings		200,559			113		0.22				204,318			119		0.23				221,366			13		0.02
Time		822,491			7,717		3.72				821,725			7,863		3.84				734,235			7,758		4.20
Total interest-bearing deposits		1,602,195			10,730		2.66				1,599,947			10,869		2.72				1,417,498			10,553		2.96
Short-term borrowings		8,740			105		4.77				17,757			211		4.77				53,622			323		2.40
Other borrowings		81,125			899		4.40				95,792			1,061		4.44				146,357			1,680		4.57
Total interest-bearing liabilities		1,692,060			11,734		2.75				1,713,496			12,141		2.84				1,617,477			12,556		3.09
Non-interest bearing liabilities:
Demand deposits		416,150									389,323									400,314
Other liabilities		28,816									29,639									29,540
Total non-interest bearing liabilities		444,966									418,962									429,854
Stockholders' equity		226,733									223,351									189,135
Total Liabilities and Stockholders' Equity	$	2,363,759								$	2,355,809								$	2,236,466
Net interest income/spread (tax equivalent basis)					20,650		2.94		%					19,264		2.75		%					16,138		2.23		%
Tax-equivalent basis adjustment					(192	)								(199	)								(207	)
Net interest income				$	20,458								$	19,065								$	15,931
Net interest margin (tax equivalent basis)							3.63		%							3.43		%							2.99		%
(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
(dollars in thousands)
	Year to Date
	September 30, 2025									June 30, 2025									September 30, 2024
	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:
Interest-bearing deposits with banks	$	17,427		$	590		4.53		%	$	19,939		$	446		4.51		%	$	53,046		$	2,194		5.52		%
Securities available for sale:
Taxable		403,947			10,907		3.61				406,416			7,247		3.60				398,462			6,514		2.18
Tax-exempt (1)		44,157			938		2.84				44,199			626		2.86				68,852			1,419		2.75
Total securities available for sale (1)		448,104			11,845		3.53				450,615			7,873		3.52				467,314			7,933		2.27
Loans receivable (1) (4) (5)		1,776,629			81,636		6.14				1,763,710			53,369		6.10				1,631,179			73,569		6.02
Total interest-earning assets		2,242,160			94,071		5.61				2,234,264			61,688		5.57				2,151,539			83,696		5.20
Non-interest earning assets:
Cash and due from banks		30,035									29,519									26,409
Allowance for credit losses		(20,675	)								(20,445	)								(18,353	)
Other assets		94,389									94,031									73,935
Total non-interest earning assets		103,749									103,105									81,991
Total Assets	$	2,345,909								$	2,337,369								$	2,233,530
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	566,762		$	8,588		2.03			$	560,469		$	5,688		2.05			$	460,579		$	7,489		2.17
Savings		205,552			374		0.24				208,090			261		0.25				223,825			549		0.33
Time		812,778			23,385		3.85				807,841			15,668		3.91				738,205			23,311		4.22
Total interest-bearing deposits		1,585,092			32,347		2.73				1,576,400			21,617		2.77				1,422,609			31,349		2.94
Short-term borrowings		23,468			774		4.41				30,954			669		4.36				57,754			1,015		2.35
Other borrowings		90,110			2,981		4.42				94,676			2,082		4.43				150,418			5,165		4.59
Total interest-bearing liabilities		1,698,670			36,102		2.84				1,702,030			24,368		2.89				1,630,781			37,529		3.07
Non-interest bearing liabilities:
Demand deposits		395,470									384,958									391,479
Other liabilities		28,978									29,594									27,677
Total non-interest bearing liabilities		424,448									414,552									419,156
Stockholders' equity		222,791									220,787									183,593
Total Liabilities and Stockholders' Equity	$	2,345,909								$	2,337,369								$	2,233,530
Net interest income/spread (tax equivalent basis)					57,969		2.77		%					37,320		2.68		%					46,167		2.12		%
Tax-equivalent basis adjustment					(589	)								(397	)								(601	)
Net interest income				$	57,380								$	36,923								$	45,566
Net interest margin (tax equivalent basis)							3.46		%							3.37		%							2.87		%
(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 September 30		2025			2024
Net interest income	$	20,458		$	15,931
Net income		8,334			3,844
Net interest spread (fully taxable equivalent)		2.94%			2.23%
Net interest margin (fully taxable equivalent)		3.63%			2.99%
Return on average assets		1.40%			0.68%
Return on average equity		14.58%			8.09%
Return on average tangible equity		16.76%			9.58%
Basic earnings per share	$	0.89		$	0.48
Diluted earnings per share	$	0.89		$	0.48
For the Nine Months Ended September 30		2025			2024
Net interest income		57,380			45,566
Net income		20,313			12,491
Net interest spread (fully taxable equivalent)		2.77%			2.12%
Net interest margin (fully taxable equivalent)		3.46%			2.87%
Return on average assets		1.16%			0.75%
Return on average equity		12.19%			9.09%
Return on average tangible equity		14.04%			10.82%
Basic earnings per share		2.22			1.55
Diluted earnings per share		2.22			1.55
As of September 30		2025			2024
Total assets	$	2,411,951		$	2,279,751
Total loans receivable		1,814,682			1,675,139
Allowance for credit losses		19,911			18,699
Total deposits		2,073,968			1,855,251
Stockholders' equity		234,905			195,654
Trust assets under management		211,563			209,857
Book value per share	$	25.36		$	24.18
Tangible book value per share	$	22.19		$	20.54
Equity to total assets		9.74%			8.58%
Allowance to total loans receivable		1.10%			1.12%
Nonperforming loans to total loans		0.36%			0.47%
Nonperforming assets to total assets		0.31%			0.35%

NORWOOD FINANCIAL CORP
Historical Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)
		September 30			June 30			March 31			December 31			September 30
Three months ended		2025			2025			2025			2024			2024
INTEREST INCOME
Loans receivable, including fees	$	28,141		$	27,115		$	25,988		$	26,122		$	25,464
Securities		3,907			3,871			3,870			2,789			2,526
Other		144			220			226			574			497
Total interest income		32,192			31,206			30,084			29,485			28,487
INTEREST EXPENSE
Deposits		10,730			10,869			10,748			10,984			10,553
Borrowings		1,004			1,272			1,479			1,876			2,003
Total interest expense		11,734			12,141			12,227			12,860			12,556
NET INTEREST INCOME		20,458			19,065			17,857			16,625			15,931
PROVISION FOR (RELEASE OF) CREDIT LOSSES		(502	)		950			857			1,604			1,345
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION
FOR CREDIT LOSSES		20,960			18,115			17,000			15,021			14,586
OTHER INCOME
Service charges and fees		1,660			1,514			1,513			1,595			1,517
Income from fiduciary activities		254			226			325			224			256
Net realized (losses) gains on sales of securities		-			-			-			(19,962	)		-
Gains on sales of loans, net		130			65			47			50			103
Gains on sales of foreclosed real estate owned		-			-			-			-			-
Earnings and proceeds on life insurance policies		268			266			286			275			261
Other		193			177			180			159			158
Total other income		2,505			2,248			2,351			(17,659	)		2,295
OTHER EXPENSES
Salaries and employee benefits		6,696			6,605			6,472			6,690			6,239
Occupancy, furniture and equipment, net		1,361			2,538			1,378			1,291			1,269
Foreclosed real estate		1			137			4			9			9
FDIC insurance assessment		368			355			406			335			339
Other		4,508			2,896			3,804			5,094			4,175
Total other expenses		12,934			12,531			12,064			13,419			12,031
INCOME BEFORE TAX (BENEFIT) EXPENSE		10,531			7,832			7,287			(16,057	)		4,850
INCOME TAX (BENEFIT) EXPENSE		2,197			1,627			1,514			(3,406	)		1,006
NET (LOSS) INCOME	$	8,334		$	6,205		$	5,773		$	(12,651	)	$	3,844
Basic (loss) earnings per share	$	0.89		$	0.67		$	0.63		$	(1.54	)	$	0.48
Diluted (loss) earnings per share	$	0.89		$	0.67		$	0.63		$	(1.54	)	$	0.48
Return on average assets (annualized)		1.40%			1.06%			1.01%			-2.19	%		0.68%
Return on average equity (annualized)		14.58%			11.14%			10.73%			-26.08	%		8.09%
Return on average tangible equity (annualized)		16.76%			12.83%			12.40%			-30.77	%		9.58%
Net interest spread (fte)		2.94%			2.75%			2.61%			2.31%			2.23%
Net interest margin (fte)		3.63%			3.43%			3.30%			3.04%			2.99%

NORWOOD FINANCIAL CORP
Historical Consolidated Balance Sheets (unaudited)
(dollars in thousands)
		September 30			June 30			March 31			December 31			September 30
		2025			2025			2025			2024			2024
ASSETS
Cash and due from banks	$	50,348		$	32,052		$	31,729		$	27,562		$	47,072
Interest-bearing deposits with banks		24,382			20,993			43,678			44,777			35,808
Cash and cash equivalents		74,730			53,045			75,407			72,339			82,880
Securities available for sale		403,989			402,460			408,742			397,846			396,891
Loans receivable		1,814,682			1,790,574			1,771,269			1,713,638			1,675,139
Less: Allowance for credit losses		19,911			20,908			20,442			19,843			18,699
Net loans receivable		1,794,771			1,769,666			1,750,827			1,693,795			1,656,440
Regulatory stock, at cost		6,163			7,538			7,616			13,366			6,329
Bank owned life insurance		45,821			46,099			46,914			46,657			46,382
Bank premises and equipment, net		22,292			21,608			20,273			19,657			18,503
Foreclosed real estate owned		-			-			-			-			-
Goodwill and other intangibles		29,375			29,387			29,402			29,418			29,433
Other assets		34,810			35,547			36,863			44,384			42,893
TOTAL ASSETS	$	2,411,951		$	2,365,350		$	2,376,044		$	2,317,462		$	2,279,751
LIABILITIES
Deposits:
Non-interest bearing demand	$	424,027		$	406,358		$	391,377		$	381,479		$	420,967
Interest-bearing deposits		1,649,941			1,591,476			1,613,071			1,477,684			1,434,284
Total deposits		2,073,968			1,997,834			2,004,448			1,859,163			1,855,251
Borrowings		72,071			111,850			118,590			214,862			197,412
Other liabilities		31,007			30,241			32,299			29,929			31,434
TOTAL LIABILITIES		2,177,046			2,139,925			2,155,337			2,103,954			2,084,097
STOCKHOLDERS' EQUITY		234,905			225,425			220,707			213,508			195,654
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$	2,411,951		$	2,365,350		$	2,376,044		$	2,317,462		$	2,279,751
Book Value per share	$	25.36		$	24.34		$	23.84		$	23.02		$	24.18
Tangible Book Value per share		22.19			21.17			20.66			19.85			20.54
Allowance for credit losses to total loans		1.10%			1.17%			1.15%			1.16%			1.12%
Net charge-offs to average loans (annualized)		0.13%			0.08%			0.07%			0.12%			0.08%
Nonperforming loans to total loans		0.36%			0.45%			0.45%			0.46%			0.47%
Nonperforming assets to total assets		0.31%			0.34%			0.33%			0.34%			0.35%

Non-GAAP Financial Measures (unaudited)

The following tables reconcile certain Non-GAAP financial measures references in this release:

Adjusted Return on Average Assets
(Dollars in thousands)
	Three Months Ended September 30,										Nine Months Ended September 30,										Three Months Ended
		2025				2024						2025				2024					June 30, 2025
Net (loss) income	$	8,334			$	3,844					$	20,313			$	12,491					$	6,205
Average assets		2,363,759				2,236,466						2,345,909				2,233,530						2,355,809
Return on average assets (annualized)		1.40		%		0.68		%				1.16		%		0.75		%				1.06		%
Net (loss) income		8,334				3,844						20,313				12,491						6,205
Merger Expenses		568				0						718				0						150
Tax effect at 21%		(119	)			0						(151	)			0						(32	)
Adjusted Net Income (Non-GAAP)		8,783				3,844						20,880				12,491						6,324
Average assets		2,363,759				2,236,466						2,345,909				2,233,530						2,355,809
Adjusted return on average assets (annualized)
(Non-GAAP)		1.47		%		0.68		%				1.19		%		0.75		%				1.08		%
Adjusted Return on Average Tangible Shareholders' Equity
(Dollars in thousands)
	Three Months Ended September 30,										Nine Months Ended September 30,										Three Months Ended
		2025				2024						2025				2024					June 30, 2025
Net (loss) income	$	8,334			$	3,844					$	20,313			$	12,491					$	6,205
Average shareholders' equity		226,733				189,135						222,791				183,593						223,351
Average intangible assets		29,380				29,440						29,394				29,457						29,394
Average tangible shareholders' equity		197,353				159,695						193,397				154,136						193,957
Return on average tangible shareholders' equity (annualized)		16.76		%		9.58		%				14.04		%		10.82		%				12.83		%
Net (loss) income		8,334				3,844						20,313				12,491						6,205
Merger Expenses		568				0						718				0						150
Tax effect at 21%		(119	)			0						(151	)			0						(32	)
Adjusted Net Income (Non-GAAP)		8,783				3,844						20,880				12,491						6,324
Average tangible shareholders' equity		197,353				159,695						193,397				154,136						193,957
Adjusted return on average shareholders' equity (annualized)
(Non-GAAP)		17.66		%		9.58		%				14.43		%		10.82		%				13.08		%
Adjusted Earnings Per Share
(Dollars in thousands)
	Three Months Ended September 30,										Nine Months Ended September 30,										Three Months Ended
		2025				2024						2025				2024					June 30, 2025
GAAP-Based Earnings Per Share, Basic	$	0.89			$	0.48					$	2.22			$	1.55					$	0.67
GAAP-Based Earnings Per Share, Diluted	$	0.89			$	0.48					$	2.22			$	1.55					$	0.67
Net (Loss) Income		8,334				3,844						20,313				12,491						6,205
Merger Expenses		568				0						718				0						150
Tax effect at 21%		(119	)			0						(151	)			0						(32	)
Adjusted Net Income (Non-GAAP)		8,783				3,844						20,880				12,491						6,324
Adjusted Earnings per Share, Basic (Non-GAAP)	$	0.94			$	0.48					$	2.28			$	1.55					$	0.69
Adjusted Earnings per Share, Diluted (Non-GAAP)	$	0.94			$	0.48					$	2.28			$	1.55					$	0.69
Pre Provision Net Revenue
(Dollars in thousands)
	Three Months Ended September 30,										Nine Months Ended September 30,										Three Months Ended
		2025				2024						2025				2024					June 30, 2025
Income before tax expense (GAAP)	$	10,531			$	4,850					$	25,651			$	15,799					$	7,832
Provision for (release of) credit losses		(502	)			1,345						1,305				1,069						950
Pre provision net revenue (PPNR) (Non-GAAP)		10,029				6,195						26,956				16,868						8,782
Merger expenses		568				0						718				0						150
PPNR adjusted for merger expenses (Non-GAAP)	$	10,597			$	6,195					$	27,674			$	16,868					$	8,932
Net interest income on a fully taxable equivalent basis
(Dollars in thousands)
	Three Months Ended September 30,										Nine Months Ended September 30,										Three Months Ended
		2025				2024						2025				2024					June 30, 2025
Net Interest Income	$	20,458			$	15,931					$	57,380			$	45,566					$	19,065
Taxable equivalent basis adjustment using 21% marginal tax rate		192				207						589				601						199
Net interest income on a fully taxable equivalent basis	$	20,650			$	16,138					$	57,969			$	46,167					$	19,264
Average tangible equity
(Dollars in thousands)
	Three Months Ended September 30,										Nine Months Ended September 30,										Three Months Ended
		2025				2024						2025				2024					June 30, 2025
Average equity	$	226,733			$	189,135					$	222,791			$	183,593					$	223,351
Average goodwill and other intangibles		(29,380	)			(29,440	)					(29,394	)			(29,457	)					(29,394	)
Average tangible equity	$	197,353			$	159,695					$	193,397			$	154,136					$	193,957
Tangible Book Value
(Dollars in thousands)
	at September 30,																				at June 30,
		2025				2024															2025
Total shareholders' equity		234,905				195,654																225,425
Adjustments:
Goodwill		(29,266	)			(29,266	)															(29,266	)
Other intangible assets		(109	)			(167	)															(121	)
Tangible common equity (Non-GAAP)		205,530				166,221																196,038
Common shares outstanding		9,262,325				8,090,711																9,260,522
Book value per common share		25.36				24.18																24.34
Tangible book value per common share (Non-GAAP)		22.19				20.54																21.17

FAQ

What were Norwood Financial (NWFL) diluted earnings per share for Q3 2025?

Norwood Financial reported $0.89 diluted EPS for the three months ended September 30, 2025.

How did Norwood Financial's net income for Q3 2025 compare to Q3 2024 (NWFL)?

Net income for Q3 2025 was $8.33M versus $3.84M in Q3 2024, an increase of about $4.49M.

What was Norwood Financial's deposit growth and total deposits as of September 30, 2025 (NWFL)?

Total deposits were $2.074 billion as of September 30, 2025, a 11.8% year-over-year increase.

What margin and efficiency metrics did Norwood Financial (NWFL) report for Q3 2025?

Norwood Financial reported a net interest margin of 3.63% and an efficiency ratio of 56.3% for Q3 2025.

How large were Norwood Financial's loans and total assets at September 30, 2025 (NWFL)?

Loans receivable were $1.815 billion and total assets were $2.412 billion at September 30, 2025.

Did Norwood Financial (NWFL) report changes to tangible book value per share in Q3 2025?

Yes. Tangible book value per share increased by $2.34 to $22.19 as of September 30, 2025.