Norwood Financial Corp announces Third Quarter Financial Results
A borrower bankruptcy resolution provided a one-time lift to interest income and margin, while two related loans remain outstanding.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Norwood Financial (NWFL) reported record third-quarter 2026 net income of $11.8 million, with earnings higher than a year earlier.
Diluted earnings per share rose to $1.08 from $0.89. Net interest income reached $28.009 million versus $20.458 million a year earlier and $26.839 million in the second quarter. Net interest margin, measured on a tax-equivalent basis, widened to 4.01% from 3.63% and 3.90%, respectively. The company attributed part of the improvement to a one-time borrower bankruptcy resolution and cited contributions from the Presence Bank acquisition.
Assets totaled $2.952 billion, loans $2.294 billion and deposits $2.509 billion at September 30. Nine-month net income increased to $24.821 million from $20.313 million. Quarterly other expenses rose to $15.552 million from $12.934 million. Tangible book value per share was $22.35, up from $21.19 a year earlier but down from $22.96 in June.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net income rose to $11.763 million from $8.334 million a year earlier and $9.328 million sequentially.
- Moderate pointQuarterly net interest income reached $28.009 million, versus $20.458 million a year earlier and $26.839 million sequentially.
- Moderate pointTax-equivalent net interest margin widened to 4.01%, versus 3.63% a year earlier and 3.90% sequentially.
- Moderate pointQuarterly revenue before credit provisions rose to $15.377 million, from $10.029 million a year earlier and $13.573 million sequentially.
- Moderate pointAssets increased to $2,951.557 million at September 30, 2026, from $2,411.951 million a year earlier.
- Moderate pointBorrower loan purchase settled past-due interest and debtor-in-possession financing, lifting quarterly interest income and reducing provision expense.
12 minor points
- Minor pointQuarterly diluted earnings per share increased to $1.08 from $0.89 a year earlier and $0.86 sequentially.
- Minor pointQuarterly return on average assets improved to 1.60% from 1.40%; return on tangible equity reached 18.51% from 16.76%.
- Minor pointLoans increased to $2,294.467 million at September 30, 2026, from $1,814.682 million a year earlier.
- Minor pointDeposits increased to $2,508.980 million at September 30, 2026, from $2,073.968 million a year earlier.
- Minor pointTangible book value per share reached $22.35, versus $21.19 a year earlier, but fell $0.61 sequentially.
- Minor pointQuarterly other income increased to $2.920 million from $2.505 million a year earlier.
- Minor pointNine-month net income rose to $24.821 million from $20.313 million; diluted earnings per share increased to $2.29 from $2.22.
- Minor pointNine-month net interest income increased to $79.402 million from $57.380 million a year earlier.
- Minor pointNine-month tax-equivalent net interest margin widened to 3.87% from 3.46% a year earlier.
- Minor pointNine-month revenue before credit provisions increased to $35.229 million from $24.346 million a year earlier.
- Minor pointNine-month other income rose to $8.162 million from $7.105 million a year earlier.
- Minor pointOther borrowings declined to $62.728 million at September 30, 2026, from $72.071 million a year earlier.
Negative
- Moderate pointQuarterly other expenses rose to $15.552 million from $12.934 million; nine-month expenses increased to $52.335 million from $37.529 million.
- Moderate pointNine-month credit-loss provision increased to $3.503 million from $1.305 million a year earlier.
- Moderate pointAccumulated other comprehensive loss widened to $39.973 million from $23.708 million at September 30, 2025.
- Moderate pointIssued common shares increased to 11,184,631 at September 30, 2026, from 9,491,558 a year earlier.
- Minor pointCredit-loss provision was $100 thousand for the quarter, versus a $502 thousand release a year earlier.
4 minor points
- Minor pointRemaining exposure to the bankrupt borrower comprises two loans totaling $7.1 million.
- Minor pointNonperforming loans were 0.73% of total loans; nonperforming assets were 0.59% of total assets.
- Minor pointNine-month return on average assets fell to 1.15% from 1.16%; return on tangible equity declined to 13.25% from 14.04%.
- Minor pointShort-term borrowings totaled $56.124 million at September 30, 2026, versus none a year earlier.
News Explained
The settlement lifted interest income and margin for the quarter, while two related loans totaling 7.1 million dollars remain.
During the third quarter, a new entity purchased one loan that had been placed on non-accrual because of the bankruptcy and the underlying business. The past-due interest on that loan was paid, and the purchase settled Wayne Bank’s debtor-in-possession financing to keep the business operating, plus its interest and fees. Two related loans remain, with total exposure of
Norwood says settlement of the financing and interest increased third-quarter interest income and, in turn, net interest margin; removing the purchased loan from non-accrual also lowered provision expense for the quarter.
Key Figures
- Net income
- $11.8 million
- Third quarter 2026
- Diluted EPS
- $1.08
- Three months ended September 30, 2026
- Net interest income
- $28.0 million
- Third quarter 2026
- Net interest margin
- 4.01%
- Third quarter 2026; compared with 3.63% a year earlier
- Pre-provision net revenue
- $15.4 million
- Third quarter 2026
- Total assets
- $2.951 billion
- September 30, 2026
- Loans receivable
- $2.294 billion
- September 30, 2026
- Remaining borrower exposure
- $7.1 million
- Two loans remaining after the third-quarter loan purchase
Previous Earnings Reports
-
Reported $9.3 million net income, $0.86 diluted EPS and 3.90% net interest margin.
-
Reported $24.6 million net interest income and closed the Presence Bancshares acquisition.
-
Reported $27.8 million annual net income and 3.49% net interest margin.
-
Reported $0.89 diluted EPS and $8.33 million quarterly net income.
-
Reported $6.2 million net income and $0.67 fully diluted EPS.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
pre-provision net revenue financial
debtor-in-possession financing financial
non-accrual financial
allowance for credit losses financial
fully taxable equivalent financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Quarterly Highlights:
- Record net income of
$11.8 million . - Record net interest income of
$28.0 million . - Net interest margin
4.01% . - Diluted earnings per share of
$1.08 . - Total assets of
$2.95 billion . - Disciplined execution across the enterprise plus contribution from Presence Bank acquisition contributed to the strong performance.
HONESDALE, Pa., Oct. 27, 2026 (GLOBE NEWSWIRE) -- - Norwood Financial Corp (the “Company”) (Nasdaq Global Market-NWFL), the holding company of Wayne Bank, announced results for the three- and nine-month periods ended September 30, 2026.
Jim Donnelly, President and Chief Executive Officer, stated, “The entire Wayne Bank team continued to perform well in the third quarter, delivering record net income and net interest income for the second consecutive quarter. In addition to strong income growth, we navigated the bankruptcy related to a borrower relationship, resolving the issue with favorable outcome. Net interest margin expanded on disciplined balance sheet management and one-time benefit of the bankruptcy resolution. Our financial position is strong and believe we are poised to extend our performance for long-term shareholder value creation.”
| (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-26 | Sep-25 | Change | Jun-26 | Change | Sep-26 | Sep-25 | Change | ||||||||||||||
| Net interest income | $ | 28,009 | $ | 20,458 | $ | 7,551 | $ | 26,839 | $ | 1,170 | $ | 79,402 | $ | 57,380 | $ | 22,022 | |||||
| Net interest spread (fte) 1 | 3.36 | % | 2.94 | % | 42 bps | 3.27 | % | 9 bps | 3.23 | % | 2.77 | % | 46 bps | ||||||||
| Net interest margin (fte) 1 | 4.01 | % | 3.63 | % | 38 bps | 3.90 | % | 11 bps | 3.87 | % | 3.46 | % | 140 bps | ||||||||
| Pre Provision Net Revenue (PPNR) 1 | $ | 15,377 | $ | 10,029 | $ | 5,348 | $ | 13,573 | $ | 1,804 | $ | 35,229 | $ | 24,346 | $ | 10,883 | |||||
| Net income | $ | 11,763 | $ | 8,334 | $ | 3,429 | $ | 9,328 | $ | 2,435 | $ | 24,821 | $ | 20,313 | $ | 4,508 | |||||
| Diluted earnings per share | $ | 1.08 | $ | 0.89 | $ | 0.19 | $ | 0.86 | $ | 0.22 | $ | 2.29 | $ | 2.22 | $ | 0.07 | |||||
| Return on average assets | 1.60 | % | 1.40 | % | 20 bps | 1.28 | % | 32 bps | 1.15 | % | 1.16 | % | (1 bp) | ||||||||
| Return on tangible equity | 18.51 | % | 16.76 | % | 175 bps | 15.04 | % | 347 bps | 13.25 | % | 14.04 | % | (79 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 | 9 Months Ended | |||||||||||||||||||
| Sep-26 | Sep-25 | Change | Jun-26 | Change | Sep-26 | Sep-25 | Change | ||||||||||||||
| Pre Provision Net Revenue (PPNR) | $ | 15,377 | $ | 10,597 | $ | 4,780 | $ | 8,932 | $ | 6,445 | $ | 40,448 | $ | 27,674 | $ | 12,774 | |||||
| Net income | $ | 11,763 | $ | 8,783 | $ | 2,980 | $ | 6,324 | $ | 5,440 | $ | 30,040 | $ | 21,031 | $ | 9,009 | |||||
| Diluted earnings per share | $ | 1.08 | $ | 0.94 | $ | 0.14 | $ | 0.69 | $ | 0.39 | $ | 2.67 | $ | 2.28 | $ | 0.39 | |||||
| Return on average assets | 1.60 | % | 1.47 | % | 13 bps | 1.08 | % | 52bps | 1.39 | % | 1.20 | % | 19 bps | ||||||||
| Return on average tangible equity | 18.51 | % | 17.66 | % | 85 bps | 13.08 | % | 543 bps | 16.04 | % | 14.54 | % | 150 bps | ||||||||
Discussion of financial results for the three months ended September 30, 2026 (all comparisons are to third quarter 2025, unless otherwise noted):
- Net income was
$11.8 million , an increase of$3.4 million from$8.3 million . Diluted earnings per share were$1.08 compared to$0.89 . - Net interest income was
$28.0 million , an increase of$7.6 million from$20.5 million . On a linked-quarter basis, net interest income increased$1.2 million from$26.8 million . - Net interest margin (fully taxable equivalent) was
4.01% compared to3.63% . On a linked-quarter basis, NIM increased 11 basis points from3.90% . - Pre-provision net revenue (PPNR) was
$15.4 million , compared to$10.0 million in the prior year quarter and$13.6 million in the linked quarter. - Total assets were
$2.951 billion , compared to$2.412 billion , an increase of18.3% . - Loans receivable were
$2.294 billion compared to$1.815 billion , an increase of20.9% . - Total deposits were
$2.509 billion compared to$2.074 billion , an increase of17.3% . - Tangible book value per share was
$22.35 compared to$21.19 at September 30, 2025, and decreased$0.61 on a linked-quarter basis from$22.96 . - Allowance for credit losses to total loans was
1.10% . Nonperforming loans to total loans were0.73% and nonperforming assets to total assets were0.59% .
Follow-up on Second Quarter Credit Event
During the second quarter of 2026, the Company recorded a
During the third quarter, one of the loans that had been placed on non-accrual, due to the bankruptcy previously disclosed, was purchased by a new entity, as was the underlying business. All past due interest from the previous loan was paid. During the period that the business was in bankruptcy, Wayne Bank advanced debtor-in-possession (DIP) financing to keep the business operating. The DIP financing along with all interest and fees was settled as part of the loan purchase. Accordingly, interest income increased in the third quarter which, in turn, increased our margin during the quarter. Additionally, removing the previous loan from non-accrual status resulted in a lower provision expense for the quarter.
Following the purchase of this loan, there remain two loans related to the borrower with a total exposure of
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
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) | ||||||
| September 30 | ||||||
| 2026 | 2025 | |||||
| ASSETS | ||||||
| Cash and due from banks | $ | 19,857 | $ | 50,348 | ||
| Interest-bearing deposits with banks | 52,667 | 24,382 | ||||
| Cash and cash equivalents | 72,524 | 74,730 | ||||
| Securities available for sale | 429,492 | 403,989 | ||||
| Loans receivable | 2,294,467 | 1,814,682 | ||||
| Less: Allowance for credit losses | 25,146 | 19,911 | ||||
| Net loans receivable | 2,269,321 | 1,794,771 | ||||
| Regulatory stock, at cost | 8,460 | 6,163 | ||||
| Bank premises and equipment, net | 25,140 | 22,292 | ||||
| Bank owned life insurance | 62,738 | 45,821 | ||||
| Foreclosed real estate owned | 771 | - | ||||
| Accrued interest receivable | 10,609 | 8,686 | ||||
| Deferred tax assets, net | 22,982 | 16,528 | ||||
| Goodwill | 36,375 | 29,266 | ||||
| Other intangible assets | 2,992 | 109 | ||||
| Other assets | 10,153 | 9,596 | ||||
| TOTAL ASSETS | $ | 2,951,557 | $ | 2,411,951 | ||
| LIABILITIES | ||||||
| Deposits: | ||||||
| Non-interest bearing demand | $ | 487,753 | $ | 424,027 | ||
| Interest-bearing | 2,021,227 | 1,649,941 | ||||
| Total deposits | 2,508,980 | 2,073,968 | ||||
| Short-term borrowings | 56,124 | - | ||||
| Other borrowings | 62,728 | 72,071 | ||||
| Accrued interest payable | 10,467 | 9,823 | ||||
| Other liabilities | 29,897 | 21,184 | ||||
| TOTAL LIABILITIES | 2,668,196 | 2,177,046 | ||||
| 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: 11,184,631 shares, 2025: 9,491,558 shares | 1,118 | 949 | ||||
| Surplus | 174,650 | 127,190 | ||||
| Retained earnings | 154,956 | 136,662 | ||||
| Treasury stock, at cost: 2026: 269,841 shares, 2025: 229,233 shares | (7,390 | ) | (6,188 | ) | ||
| Accumulated other comprehensive loss | (39,973 | ) | (23,708 | ) | ||
| TOTAL STOCKHOLDERS' EQUITY | 283,361 | 234,905 | ||||
| TOTAL LIABILITIES AND | ||||||
| STOCKHOLDERS' EQUITY | $ | 2,951,557 | $ | 2,411,951 | ||
| 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, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| INTEREST INCOME | |||||||||||||
| Loans receivable, including fees | $ | 36,635 | $ | 28,141 | $ | 106,093 | $ | 81,244 | |||||
| Securities | 4,472 | 3,907 | 13,076 | 11,648 | |||||||||
| Other | 354 | 144 | 1,132 | 590 | |||||||||
| Total Interest income | 41,461 | 32,192 | 120,301 | 93,482 | |||||||||
| INTEREST EXPENSE | |||||||||||||
| Deposits | 12,775 | 10,730 | 38,462 | 32,347 | |||||||||
| Short-term borrowings | 37 | 105 | 128 | 774 | |||||||||
| Other borrowings | 640 | 899 | 2,309 | 2,981 | |||||||||
| Total Interest expense | 13,452 | 11,734 | 40,899 | 36,102 | |||||||||
| NET INTEREST INCOME | 28,009 | 20,458 | 79,402 | 57,380 | |||||||||
| PROVISION FOR (RELEASE OF) CREDIT LOSSES | 100 | (502 | ) | 3,503 | 1,305 | ||||||||
| NET INTEREST INCOME AFTER PROVISION FOR (RELEASE OF) CREDIT LOSSES | 27,909 | 20,960 | 75,899 | 56,075 | |||||||||
| OTHER INCOME | |||||||||||||
| Service charges and fees | 2,004 | 1,660 | 5,425 | 4,687 | |||||||||
| Income from fiduciary activities | 265 | 254 | 751 | 805 | |||||||||
| Gains on sales of loans, net | 58 | 130 | 188 | 242 | |||||||||
| Earnings and proceeds on life insurance policies | 334 | 268 | 974 | 820 | |||||||||
| Other | 259 | 193 | 824 | 551 | |||||||||
| Total other income | 2,920 | 2,505 | 8,162 | 7,105 | |||||||||
| OTHER EXPENSES | |||||||||||||
| Salaries and employee benefits | 8,274 | 6,696 | 25,497 | 19,773 | |||||||||
| Occupancy, furniture and equipment | 1,521 | 1,361 | 4,815 | 4,088 | |||||||||
| Data processing and related operations | 1,650 | 1,087 | 4,660 | 3,361 | |||||||||
| Taxes, other than income | 145 | 192 | 521 | 577 | |||||||||
| Professional fees | 530 | 400 | 1,952 | 1,532 | |||||||||
| FDIC Insurance assessment | 639 | 368 | 1,574 | 1,129 | |||||||||
| Foreclosed real estate | 58 | 1 | 125 | 143 | |||||||||
| Amortization of intangibles | 162 | 12 | 493 | 42 | |||||||||
| Merger | 0 | 568 | 4,994 | 718 | |||||||||
| Other | 2,573 | 2,249 | 7,704 | 6,166 | |||||||||
| Total other expenses | 15,552 | 12,934 | 52,335 | 37,529 | |||||||||
| INCOME BEFORE TAX EXPENSE | 15,277 | 10,531 | 31,726 | 25,651 | |||||||||
| INCOME TAX EXPENSE | 3,514 | 2,197 | 6,905 | 5,338 | |||||||||
| NET INCOME | $ | 11,763 | $ | 8,334 | $ | 24,821 | $ | 20,313 | |||||
| Basic earnings per share | $ | 1.08 | $ | 0.89 | $ | 2.29 | $ | 2.22 | |||||
| Diluted earnings per share | $ | 1.08 | $ | 0.89 | $ | 2.29 | $ | 2.22 | |||||
| NORWOOD FINANCIAL CORP | ||||||||||||||||||||||||||
| NET INTEREST MARGIN ANALYSIS | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 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 | $ | 15 | – | – | % | $ | 1,511 | 14 | 3.72 | % | $ | – | – | – | % | |||||||||||
| Interest-bearing deposits with banks | 39,717 | $ | 354 | 3.54 | 43,467 | $ | 364 | 3.36 | 12,485 | $ | 144 | 4.58 | ||||||||||||||
| Securities available for sale: | ||||||||||||||||||||||||||
| Taxable | 439,064 | 4,224 | 3.82 | 435,004 | 4,246 | 3.92 | 399,090 | 3,661 | 3.64 | |||||||||||||||||
| Tax-exempt (1) | 43,956 | 322 | 2.91 | 44,269 | 315 | 2.85 | 44,074 | 312 | 2.81 | |||||||||||||||||
| Total securities available for sale (1) | 483,020 | 4,546 | 3.73 | 479,273 | 4,561 | 3.82 | 443,164 | 3,973 | 3.56 | |||||||||||||||||
| Loans receivable (1) (4) (5) | 2,267,664 | 36,760 | 6.43 | 2,253,991 | 35,700 | 6.35 | 1,802,046 | 28,267 | 6.22 | |||||||||||||||||
| Total interest-earning assets | 2,790,416 | 41,660 | 5.92 | 2,778,242 | 40,639 | 5.87 | 2,257,695 | 32,384 | 5.69 | |||||||||||||||||
| Non-interest earning assets: | ||||||||||||||||||||||||||
| Cash and due from banks | 19,466 | 30,147 | 31,050 | |||||||||||||||||||||||
| Allowance for credit losses | (26,101 | ) | (24,556 | ) | (21,128 | ) | ||||||||||||||||||||
| Other assets | 125,818 | 129,320 | 96,142 | |||||||||||||||||||||||
| Total non-interest earning assets | 119,183 | 134,911 | 106,064 | |||||||||||||||||||||||
| Total Assets | $ | 2,909,599 | $ | 2,913,153 | $ | 2,363,759 | ||||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||
| Interest-bearing demand and money market | $ | 741,251 | $ | 3,519 | 1.88 | $ | 727,580 | $ | 3,460 | 1.91 | $ | 579,145 | $ | 2,900 | 1.99 | |||||||||||
| Savings | 230,456 | 268 | 0.46 | 231,852 | 200 | 0.35 | 200,559 | 113 | 0.22 | |||||||||||||||||
| Time | 1,045,893 | 8,989 | 3.41 | 1,071,210 | 9,239 | 3.46 | 822,491 | 7,717 | 3.72 | |||||||||||||||||
| Total interest-bearing deposits | 2,017,600 | 12,776 | 2.51 | 2,030,642 | 12,899 | 2.55 | 1,602,195 | 10,730 | 2.66 | |||||||||||||||||
| Short-term borrowings | 3,540 | 36 | 4.03 | 3,233 | 32 | 3.97 | 8,740 | 105 | 4.77 | |||||||||||||||||
| Other borrowings | 63,901 | 640 | 3.97 | 67,802 | 687 | 4.06 | 81,125 | 899 | 4.40 | |||||||||||||||||
| Total interest-bearing liabilities | 2,085,041 | 13,452 | 2.56 | 2,101,677 | 13,618 | 2.60 | 1,692,060 | 11,734 | 2.75 | |||||||||||||||||
| Non-interest bearing liabilities: | ||||||||||||||||||||||||||
| Demand deposits | 494,690 | 486,557 | 416,150 | |||||||||||||||||||||||
| Other liabilities | 38,244 | 36,585 | 28,816 | |||||||||||||||||||||||
| Total non-interest bearing liabilities | 532,934 | 523,142 | 444,966 | |||||||||||||||||||||||
| Stockholders' equity | 291,624 | 288,334 | 226,733 | |||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 2,909,599 | $ | 2,913,153 | $ | 2,363,759 | ||||||||||||||||||||
| Net interest income/spread (tax equivalent basis) | 28,208 | 3.36 | % | 27,021 | 3.27 | % | 20,650 | 2.94 | % | |||||||||||||||||
| Tax-equivalent basis adjustment | (199 | ) | (182 | ) | (192 | ) | ||||||||||||||||||||
| Net interest income | $ | 28,009 | $ | 26,839 | $ | 20,458 | ||||||||||||||||||||
| Net interest margin (tax equivalent basis) | 4.01 | % | 3.90 | % | 3.63 | % | ||||||||||||||||||||
| (1) Interest and yields are presented on a tax-equivalent basis. | ||||||||||||||||||||||||||
| (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, 2026 | June 30, 2026 | September 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 | $ | 818 | 25 | 4.09 | % | $ | 1,226 | 25 | 4.11 | % | $ | – | – | – | % | ||||||||||||
| Interest-bearing deposits with banks | 51,908 | $ | 1,107 | 2.85 | 58,074 | $ | 753 | 2.61 | 17,427 | $ | 590 | 4.53 | |||||||||||||||
| Securities available for sale: | |||||||||||||||||||||||||||
| Taxable | 429,970 | 12,328 | 3.83 | 425,350 | 8,104 | 3.84 | 403,947 | 10,907 | 3.61 | ||||||||||||||||||
| Tax-exempt (1) | 44,285 | 955 | 2.88 | 44,451 | 633 | 2.87 | 44,157 | 938 | 2.84 | ||||||||||||||||||
| Total securities available for sale (1) | 474,255 | 13,283 | 3.74 | 469,801 | 8,737 | 3.75 | 448,104 | 11,845 | 3.53 | ||||||||||||||||||
| Loans receivable (1) (4) (5) | 2,239,147 | 106,460 | 6.36 | 2,224,699 | 69,700 | 6.32 | 1,776,629 | 81,636 | 6.14 | ||||||||||||||||||
| Total interest-earning assets | 2,766,128 | 120,875 | 5.84 | 2,753,800 | 79,215 | 5.80 | 2,242,160 | 94,071 | 5.61 | ||||||||||||||||||
| Non-interest earning assets: | |||||||||||||||||||||||||||
| Cash and due from banks | 26,719 | 30,409 | 30,035 | ||||||||||||||||||||||||
| Allowance for credit losses | (24,691 | ) | (23,976 | ) | (20,675 | ) | |||||||||||||||||||||
| Other assets | 128,943 | 130,526 | 94,389 | ||||||||||||||||||||||||
| Total non-interest earning assets | 130,971 | 136,959 | 103,749 | ||||||||||||||||||||||||
| Total Assets | $ | 2,897,099 | $ | 2,890,759 | $ | 2,345,909 | |||||||||||||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||
| Interest-bearing demand and money market | $ | 730,956 | $ | 10,441 | 1.91 | $ | 725,787 | $ | 6,922 | 1.92 | $ | 566,762 | $ | 8,588 | 2.03 | ||||||||||||
| Savings | 227,101 | 605 | 0.36 | 225,380 | 337 | 0.30 | 205,552 | 374 | 0.24 | ||||||||||||||||||
| Time | 1,052,670 | 27,416 | 3.48 | 1,056,053 | 18,427 | 3.52 | 812,778 | 23,385 | 3.85 | ||||||||||||||||||
| Total interest-bearing deposits | 2,010,727 | 38,462 | 2.56 | 2,007,220 | 25,686 | 2.58 | 1,585,092 | 32,347 | 2.73 | ||||||||||||||||||
| Short-term borrowings | 4,337 | 128 | 3.95 | 4,782 | 92 | 3.88 | 23,468 | 774 | 4.41 | ||||||||||||||||||
| Other borrowings | 75,503 | 2,309 | 4.09 | 81,395 | 1,669 | 4.13 | 90,110 | 2,981 | 4.42 | ||||||||||||||||||
| Total interest-bearing liabilities | 2,090,567 | 40,899 | 2.62 | 2,093,397 | 27,447 | 2.64 | 1,698,670 | 36,102 | 2.84 | ||||||||||||||||||
| Non-interest bearing liabilities: | |||||||||||||||||||||||||||
| Demand deposits | 479,931 | 472,412 | 395,470 | ||||||||||||||||||||||||
| Other liabilities | 36,680 | 35,886 | 28,978 | ||||||||||||||||||||||||
| Total non-interest bearing liabilities | 516,611 | 508,298 | 424,448 | ||||||||||||||||||||||||
| Stockholders' equity | 289,921 | 289,064 | 222,791 | ||||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 2,897,099 | $ | 2,890,759 | $ | 2,345,909 | |||||||||||||||||||||
| Net interest income/spread (tax equivalent basis) | 79,976 | 3.23 | % | 51,768 | 3.16 | % | 57,969 | 2.77 | % | ||||||||||||||||||
| Tax-equivalent basis adjustment | (574 | ) | (375 | ) | (589 | ) | |||||||||||||||||||||
| Net interest income | $ | 79,402 | $ | 51,393 | $ | 57,380 | |||||||||||||||||||||
| Net interest margin (tax equivalent basis) | 3.87 | % | 3.79 | % | 3.46 | % | |||||||||||||||||||||
| (1) Interest and yields are presented on a tax-equivalent basis. | |||||||||||||||||||||||||||
| (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 | 2026 | 2025 | |||||
| Net interest income | $ | 28,009 | $ | 20,458 | |||
| Net income | 11,763 | 8,334 | |||||
| Net interest spread (fully taxable equivalent) | 3.36 | % | 2.94 | % | |||
| Net interest margin (fully taxable equivalent) | 4.01 | % | 3.63 | % | |||
| Return on average assets | 1.60 | % | 1.40 | % | |||
| Return on average equity | 16.00 | % | 14.58 | % | |||
| Return on average tangible equity | 18.51 | % | 16.76 | % | |||
| Basic earnings per share | $ | 1.08 | $ | 0.89 | |||
| Diluted earnings per share | $ | 1.08 | $ | 0.89 | |||
| Efficiency ratio | 50.28 | % | 56.33 | % | |||
| Operating expense/Average assets | 2.14 | % | 2.19 | % | |||
| For the Nine Months Ended September 30 | 2026 | 2025 | |||||
| Net interest income | 79,402 | 57,380 | |||||
| Net income | 24,821 | 20,313 | |||||
| Net interest spread (fully taxable equivalent) | 3.23 | % | 2.77 | % | |||
| Net interest margin (fully taxable equivalent) | 3.87 | % | 3.46 | % | |||
| Return on average assets | 1.15 | % | 1.16 | % | |||
| Return on average equity | 11.45 | % | 12.19 | % | |||
| Return on average tangible equity | 13.25 | % | 14.04 | % | |||
| Basic earnings per share | 2.29 | 2.22 | |||||
| Diluted earnings per share | 2.29 | 2.22 | |||||
| Efficiency ratio | 59.77 | % | 58.20 | % | |||
| Operating expense/Average assets | 2.41 | % | 2.13 | % | |||
| As of September 30 | 2026 | 2025 | |||||
| Total assets | $ | 2,951,557 | $ | 2,411,951 | |||
| Total loans receivable | 2,294,467 | 1,814,682 | |||||
| Allowance for credit losses | 25,146 | 19,911 | |||||
| Total deposits | 2,508,980 | 2,073,968 | |||||
| Stockholders' equity | 283,361 | 234,905 | |||||
| Trust assets under management | 231,302 | 211,563 | |||||
| Book value per share | $ | 25.96 | $ | 25.36 | |||
| Tangible book value per share | $ | 22.35 | $ | 22.19 | |||
| Equity to total assets | 9.60 | % | 9.74 | % | |||
| Allowance to total loans receivable | 1.10 | % | 1.10 | % | |||
| Nonperforming loans to total loans | 0.73 | % | 0.36 | % | |||
| Nonperforming assets to total assets | 0.59 | % | 0.31 | % | |||
| NORWOOD FINANCIAL CORP | ||||||||||||||||
| Consolidated Balance Sheets (unaudited) | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| September 30 | June 30 | March 31 | December 31 | September 30 | ||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 19,857 | $ | 30,902 | $ | 25,480 | $ | 32,118 | $ | 50,348 | ||||||
| Interest-bearing deposits with banks | 52,667 | 29,387 | 75,258 | 12,318 | 24,382 | |||||||||||
| Fed funds sold | 0 | 0 | 1,835 | 0 | 0 | |||||||||||
| Cash and cash equivalents | 72,524 | 60,289 | 102,573 | 44,436 | 74,730 | |||||||||||
| Securities available for sale | 429,492 | 438,967 | 431,204 | 408,782 | 403,989 | |||||||||||
| Loans receivable | 2,294,467 | 2,262,813 | 2,238,657 | 1,853,422 | 1,814,682 | |||||||||||
| Less: Allowance for credit losses | 25,146 | 25,632 | 24,350 | 19,882 | 19,911 | |||||||||||
| Net loans receivable | 2,269,321 | 2,237,181 | 2,214,307 | 1,833,540 | 1,794,771 | |||||||||||
| Regulatory stock, at cost | 8,460 | 6,399 | 7,161 | 6,623 | 6,163 | |||||||||||
| Bank owned life insurance | 62,738 | 55,404 | 55,078 | 46,089 | 45,821 | |||||||||||
| Bank premises and equipment, net | 25,140 | 25,262 | 25,299 | 22,971 | 22,292 | |||||||||||
| Foreclosed real estate owned | 771 | 771 | 771 | 771 | - | |||||||||||
| Goodwill and other intangibles | 39,367 | 39,528 | 39,693 | 29,364 | 29,375 | |||||||||||
| Other assets | 43,744 | 44,113 | 41,168 | 32,266 | 34,810 | |||||||||||
| TOTAL ASSETS | $ | 2,951,557 | $ | 2,907,914 | $ | 2,917,254 | $ | 2,424,842 | $ | 2,411,951 | ||||||
| LIABILITIES | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Non-interest bearing demand | $ | 487,753 | $ | 500,383 | $ | 470,706 | $ | 419,597 | $ | 424,027 | ||||||
| Interest-bearing deposits | 2,021,227 | 2,013,914 | 2,035,992 | 1,659,048 | 1,649,941 | |||||||||||
| Total deposits | 2,508,980 | 2,514,297 | 2,506,698 | 2,078,645 | 2,073,968 | |||||||||||
| Borrowings | 118,852 | 65,513 | 88,268 | 74,133 | 72,071 | |||||||||||
| Other liabilities | 40,364 | 38,464 | 38,350 | 29,907 | 31,007 | |||||||||||
| TOTAL LIABILITIES | 2,668,196 | 2,618,274 | 2,633,316 | 2,182,685 | 2,177,046 | |||||||||||
| STOCKHOLDERS' EQUITY | 283,361 | 289,640 | 283,938 | 242,157 | 234,905 | |||||||||||
| TOTAL LIABILITIES AND | ||||||||||||||||
| STOCKHOLDERS' EQUITY | $ | 2,951,557 | $ | 2,907,914 | $ | 2,917,254 | $ | 2,424,842 | $ | 2,411,951 | ||||||
| NORWOOD FINANCIAL CORP | ||||||||||||||||
| 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 | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||
| INTEREST INCOME | ||||||||||||||||
| Loans receivable, including fees | $ | 36,635 | $ | 35,585 | $ | 33,873 | $ | 28,666 | $ | 28,141 | ||||||
| Securities | 4,472 | 4,495 | 4,110 | 3,906 | 3,907 | |||||||||||
| Other | 354 | 377 | 400 | 474 | 144 | |||||||||||
| Total interest income | 41,461 | 40,457 | 38,383 | 33,046 | 32,192 | |||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Deposits | 12,775 | 12,899 | 12,787 | 11,334 | 10,730 | |||||||||||
| Borrowings | 677 | 719 | 1,042 | 768 | 1,004 | |||||||||||
| Total interest expense | 13,452 | 13,618 | 13,829 | 12,102 | 11,734 | |||||||||||
| NET INTEREST INCOME | 28,009 | 26,839 | 24,554 | 20,944 | 20,458 | |||||||||||
| PROVISION FOR (RELEASE OF) CREDIT LOSSES | 100 | 1,944 | 1,459 | 468 | (502 | ) | ||||||||||
| NET INTEREST INCOME AFTER (RELEASE OF) PROVISION | ||||||||||||||||
| FOR CREDIT LOSSES | 27,909 | 24,895 | 23,095 | 20,476 | 20,960 | |||||||||||
| OTHER INCOME | ||||||||||||||||
| Service charges and fees | 2,004 | 1,666 | 1,755 | 1,734 | 1,660 | |||||||||||
| Income from fiduciary activities | 265 | 248 | 238 | 228 | 254 | |||||||||||
| Net realized (losses) gains on sales of securities | - | - | - | - | - | |||||||||||
| Gains on sales of loans, net | 58 | 54 | 76 | 83 | 130 | |||||||||||
| Gains on sales of foreclosed real estate owned | - | - | - | - | - | |||||||||||
| Earnings and proceeds on life insurance policies | 334 | 326 | 314 | 268 | 268 | |||||||||||
| Other | 259 | 232 | 332 | 198 | 193 | |||||||||||
| Total other income | 2,920 | 2,526 | 2,715 | 2,511 | 2,505 | |||||||||||
| OTHER EXPENSES | ||||||||||||||||
| Salaries and employee benefits | 8,274 | 8,674 | 8,549 | 7,155 | 6,696 | |||||||||||
| Occupancy, furniture and equipment, net | 1,521 | 1,569 | 1,725 | 1,390 | 1,361 | |||||||||||
| Foreclosed real estate | 58 | 31 | 36 | - | 1 | |||||||||||
| FDIC insurance assessment | 639 | 428 | 507 | 423 | 368 | |||||||||||
| Other | 5,060 | 5,090 | 10,173 | 4,651 | 4,508 | |||||||||||
| Total other expenses | 15,552 | 15,792 | 20,990 | 13,619 | 12,934 | |||||||||||
| INCOME BEFORE TAX (BENEFIT) EXPENSE | 15,277 | 11,629 | 4,820 | 9,368 | 10,531 | |||||||||||
| INCOME TAX (BENEFIT) EXPENSE | 3,514 | 2,301 | 1,090 | 1,926 | 2,197 | |||||||||||
| NET (LOSS) INCOME | $ | 11,763 | $ | 9,328 | $ | 3,730 | $ | 7,442 | $ | 8,334 | ||||||
| Basic (loss) earnings per share | $ | 1.08 | $ | 0.86 | $ | 0.35 | $ | 0.81 | $ | 0.89 | ||||||
| Diluted (loss) earnings per share | $ | 1.08 | $ | 0.86 | $ | 0.35 | $ | 0.81 | $ | 0.89 | ||||||
| Book Value per share | $ | 25.96 | $ | 26.59 | $ | 26.07 | $ | 26.06 | $ | 25.36 | ||||||
| Tangible Book Value per share | 22.35 | 22.96 | 22.43 | 22.90 | 22.19 | |||||||||||
| Return on average assets (annualized) | 1.60 | % | 1.28 | % | 0.53 | % | 1.21 | % | 1.40 | % | ||||||
| Return on average equity (annualized) | 16.00 | % | 12.98 | % | 5.22 | % | 12.30 | % | 14.58 | % | ||||||
| Return on average tangible equity (annualized) | 18.51 | % | 15.04 | % | 6.04 | % | 14.01 | % | 16.76 | % | ||||||
| Net interest spread (fte) | 3.36 | % | 3.27 | % | 3.04 | % | 2.93 | % | 2.94 | % | ||||||
| Net interest margin (fte) | 4.01 | % | 3.90 | % | 3.68 | % | 3.60 | % | 3.63 | % | ||||||
| Allowance for credit losses to total loans | 1.10 | % | 1.13 | % | 1.09 | % | 1.07 | % | 1.10 | % | ||||||
| Net charge-offs to average loans (annualized) | 0.13 | % | 0.24 | % | 0.09 | % | 0.13 | % | 0.13 | % | ||||||
| Nonperforming loans to total loans | 0.73 | % | 1.21 | % | 0.46 | % | 0.34 | % | 0.36 | % | ||||||
| Nonperforming assets to total assets | 0.59 | % | 0.97 | % | 0.38 | % | 0.29 | % | 0.31 | % | ||||||
| Nonperforming loans to total assets | 0.57 | % | 0.94 | % | 0.35 | % | 0.26 | % | 0.27 | % | ||||||
| Loan Loss Reserve/NPAs | 143.33 | % | 91.13 | % | 219.93 | % | 279.62 | % | 270.50 | % | ||||||
| NORWOOD FINANCIAL CORP | ||||||||||||||||
| NON-GAAP ADJUSTMENTS | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| Adjusted Return on Average Assets | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Nine Months | Three Months | Three Months | Nine Months | Three Months | ||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||
| September 30, | September 30, | June 30, | September 30, | September 30, | ||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||
| Net income | $ | 24,821 | $ | 11,763 | $ | 9,328 | $ | 20,313 | $ | 8,334 | ||||||
| Average assets | 2,897,099 | 2,909,599 | 2,913,153 | 2,345,909 | 2,363,759 | |||||||||||
| Return on average assets (annualized) | 1.15 | % | 1.60 | % | 1.28 | % | 1.16 | % | 1.40 | % | ||||||
| Net income | 24,821 | 11,763 | 9,328 | 20,313 | 8,334 | |||||||||||
| Merger-related expenses | 4,994 | 0 | 53 | 718 | 568 | |||||||||||
| Boli restructuring fee | 225 | 0 | 0 | 0 | 0 | |||||||||||
| Tax effect | 0 | 0 | 0 | 0 | 0 | |||||||||||
| Adjusted net income (Non-GAAP) | 30,040 | 11,763 | 9,381 | 21,031 | 8,902 | |||||||||||
| Average assets | 2,897,099 | 2,909,599 | 2,913,153 | 2,345,909 | 2,363,759 | |||||||||||
| Adjusted return on average assets (annualized) | ||||||||||||||||
| (Non-GAAP) | 1.39 | % | 1.60 | % | 1.29 | % | 1.20 | % | 1.49 | % | ||||||
| Adjusted Return on Average Tangible Shareholders' Equity | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Nine Months | Three Months | Three Months | Nine Months | Three Months | ||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||
| September 30, | September 30, | June 30, | September 30, | September 30, | ||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||
| Net income | $ | 24,821 | $ | 11,763 | $ | 9,328 | $ | 20,313 | $ | 8,334 | ||||||
| Average shareholders' equity | 289,921 | 291,624 | 288,334 | 222,791 | 226,733 | |||||||||||
| Average intangible assets | 39,466 | 39,455 | 39,609 | 29,394 | 29,380 | |||||||||||
| Average tangible shareholders' equity | 250,455 | 252,169 | 248,725 | 193,397 | 197,353 | |||||||||||
| Return on average tangible shareholders' equity (annualized) | 13.25 | % | 18.51 | % | 15.04 | % | 14.04 | % | 16.76 | % | ||||||
| Net income | 24,821 | 11,763 | 9,328 | 20,313 | 8,334 | |||||||||||
| Merger-related expenses | 4,994 | 0 | 53 | 718 | 568 | |||||||||||
| Boli restructuring fee | 225 | 0 | 0 | 0 | 0 | |||||||||||
| Tax effect | 0 | 0 | 0 | 0 | 0 | |||||||||||
| Adjusted net income (Non-GAAP) | 30,040 | 11,763 | 9,381 | 21,031 | 8,902 | |||||||||||
| Average tangible shareholders' equity | 250,455 | 252,169 | 248,725 | 193,397 | 197,353 | |||||||||||
| Adjusted return on average shareholders' equity (annualized) | ||||||||||||||||
| (Non-GAAP) | 16.04 | 18.51 | % | 15.13 | % | 14.54 | % | 17.90 | % | |||||||
| Adjusted Earnings Per Share | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Nine Months | Three Months | Three Months | Nine Months | Three Months | ||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||
| September 30, | September 30, | June 30, | September 30, | September 30, | ||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||
| GAAP-Based Earnings Per Share, Basic | $ | 2.29 | $ | 1.08 | $ | 0.86 | $ | 2.22 | $ | 0.89 | ||||||
| GAAP-Based Earnings Per Share, Diluted | $ | 2.29 | $ | 1.08 | $ | 0.86 | $ | 2.22 | $ | 0.89 | ||||||
| Net income | 24,821 | 11,763 | 9,328 | 20,313 | 8,334 | |||||||||||
| Merger-related expenses | 4,994 | 0 | 53 | 718 | 568 | |||||||||||
| Boli restructuring fee | 225 | 0 | 0 | 0 | 0 | |||||||||||
| Tax effect | 0 | 0 | 0 | 0 | 0 | |||||||||||
| Adjusted net income (Non-GAAP) | 30,040 | 11,763 | 9,381 | 21,031 | 8,902 | |||||||||||
| Adjusted Earnings per Share, Basic (Non-GAAP) | $ | 2.67 | $ | 1.08 | $ | 0.86 | $ | 2.28 | $ | 0.94 | ||||||
| Adjusted Earnings per Share, Diluted (Non-GAAP) | $ | 2.67 | $ | 1.08 | $ | 0.86 | $ | 2.28 | $ | 0.94 | ||||||
| Pre Provision Net Revenue | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Nine Months | Three Months | Three Months | Nine Months | Three Months | ||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||
| September 30, | September 30, | June 30, | September 30, | September 30, | ||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||
| Income before tax expense (GAAP) | $ | 31,726 | $ | 15,277 | $ | 11,629 | $ | 25,651 | 10,531 | |||||||
| Provision for credit losses | 3,503 | 100 | 1,944 | 1,305 | (502 | ) | ||||||||||
| Pre provision net revenue (PPNR) (Non-GAAP) | 35,229 | 15,377 | 13,573 | 26,956 | 10,029 | |||||||||||
| Merger-related expenses | 4,994 | 0 | 53 | 718 | 568 | |||||||||||
| BOLI restructuring fee | 225 | 0 | 0 | 0 | 0 | |||||||||||
| PPNR adjusted for one time expenses (Non-GAAP) | 40,448 | 15,377 | 13,626 | 27,674 | 10,597 | |||||||||||
| Net Interest Income FTE | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Nine Months | Three Months | Three Months | Nine Months | Three Months | ||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||
| September 30, | September 30, | June 30, | September 30, | September 30, | ||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||
| Net interest income | $ | 79,402 | $ | 28,009 | $ | 26,839 | $ | 57,380 | $ | 20,458 | ||||||
| Tax effect at | 574 | 199 | 182 | 589 | 192 | |||||||||||
| Net interest income on a fully taxable equivalent basis | $ | 79,976 | $ | 28,208 | $ | 27,021 | $ | 57,969 | $ | 20,650 | ||||||
| Average Tangible Shareholders' Equity | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| Nine Months | Three Months | Three Months | Nine Months | Three Months | ||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||
| September 30, | September 30, | June 30, | September 30, | September 30, | ||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||
| Average shareholders' equity | $ | 289,921 | $ | 291,624 | $ | 288,334 | $ | 222,791 | $ | 226,733 | ||||||
| Average intangible assets | (39,466 | ) | (39,455 | ) | (39,609 | ) | (29,394 | ) | (29,380 | ) | ||||||
| Average tangible shareholders' equity | $ | 250,455 | $ | 252,169 | $ | 248,725 | $ | 193,397 | $ | 197,353 | ||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Norwood Financial's third-quarter 2026 earnings?
Norwood Financial earned $11.763 million, or $1.08 per diluted share, in the third quarter of 2026. That compares with $8.334 million and $0.89 per diluted share in the third quarter of 2025.
Why did Norwood Financial's net interest margin improve in the third quarter of 2026?
The company attributed the improvement to balance-sheet management and a one-time benefit from a borrower bankruptcy resolution. Payment of past-due interest and settlement of financing extended during bankruptcy increased quarterly interest income. Tax-equivalent net interest margin reached 4.01%, compared with 3.90% in the second quarter.
What exposure does Norwood Financial retain to the borrower involved in the bankruptcy resolution?
Norwood Financial retains two loans totaling $7.1 million related to the borrower. A new entity purchased another loan and the underlying business during the third quarter. The company had recorded a $729 thousand charge-off related to the relationship in the second quarter of 2026.