Norwood Financial Corp Announces Third Quarter Financial Results
| (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 to 3.63%. On a linked-quarter basis, NIM increased 11 basis points from 3.90%. 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 of 18.3%. Loans receivable were $2.294 billion compared to $1.815 billion, an increase of 20.9%. Total deposits were $2.509 billion compared to $2.074 billion, an increase of 17.3%. 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 were 0.73% and nonperforming assets to total assets were 0.59%.
Follow-up on Second Quarter Credit Event
During the second quarter of 2026, the Company recorded a $729 thousand charge-off related to a borrower relationship that filed for Chapter 11 bankruptcy protection.
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 $7.1 million.
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
| 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 21% | 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 |
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