Full Year Highlights:

  • Full year fully diluted EPS of $3.01.
  • Full year net interest margin increased 58 basis points over the prior year.
  • Full year loan growth of 8.2%.
  • Full year deposit growth of 11.8%.
  • Non-interest bearing DDA up 10% during 2025.
  • Tangible book value per share increased 15.4%.

HONESDALE, Pa., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced results for the three months and full year ended December 31, 2025.

Jim Donnelly, President and Chief Executive Officer, stated, “We finished the year on a positive note in the fourth quarter, as we continued to maintain solid growth, while improving profitability and efficiency. Our disciplined approach and commitment to core values propels us to be able to deliver strong 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. This gives us great momentum as we enter 2026.

“On January 5, we closed on the acquisition of Presence Bank, giving us a larger geographic presence, greater assets, and a talented team dedicated to serving our communities. I am energized by this combination and believe that we are on our way to creating a bright future for us, our customers, and our shareholders.”

(dollars in thousands, except per share data) Year-Over Year Linked Quarter Year-to-Date
3 Months Ended 3 Months Ended 12 Months Ended
Dec-25 Dec-24 Change Sep-25 Change Dec-25 Dec-24 Change
Net interest income $ 20,944 $ 16,625 $ 4,319 $ 20,458 $ 486 $ 78,324 $ 62,191 $ 16,133
Net interest spread (fte) 1 2.93 % 2.31 % 62 bps 0.00 % (1) bp 2.81 % 2.17 % 64 bps
Net interest margin (fte) 1 3.60 % 3.04 % 56 bps 3.63 % (3) bps 3.49 % 2.91 % 58 bps
Pre Provision Net Revenue (PPNR) 1 $ 9,836 $ (14,453 ) $ 24,289 $ 10,029 $ (193 ) $ 36,792 $ 2,415 $ 34,377
Net income (loss) $ 7,442 $ (12,651 ) $ 20,093 $ 8,334 $ (892 ) $ 27,755 $ (160 ) $ 27,915
Diluted earnings per share $ 0.81 $ (1.54 ) $ 2.35 $ 0.89 $ (0.08 ) $ 3.01 $ (0.02 ) $ 3.03
Return on average assets 1.21 % -2.19 % 340 bps 1.40 % -19 bps 1.17 % -0.01 % 118 bps
Return on average tangible equity 14.01 % -30.77 % 4478 bps 16.76 % -275 bps 14.03 % -0.10 % 1413 bps
1 - Non GAAP ratio. See Non-GAAP Reconciliation
Excluding 2025 merger charges and 2024 Loss on Sale of Securities (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 12 Months Ended
Dec-25 Dec-24 Change Sep-25 Change Dec-25 Dec-24 Change
Pre Provision Net Revenue (PPNR) $ 10,356 $ 5,509 $ 4,847 $ 10,597 $ (241 ) $ 38,030 $ 22,377 $ 15,653
Net income (loss) $ 7,853 $ 3,119 $ 4,734 $ 8,783 $ (930 ) $ 28,773 $ 15,610 $ 13,163
Diluted earnings per share $ 0.85 $ 0.38 $ 0.47 $ 0.94 $ (0.09 ) $ 3.11 $ 1.93 $ 1.18
Return on average assets 1.28 % 0.54 % 74 bps 1.47 % -19 bps 1.21 % 0.69 % 52 bps
Return on average tangible equity 14.78 % 7.59 % 719 bps 17.66 % -288 bps 14.53 % 9.97 % 456 bps

Discussion of financial results for the three months and full year ended December 31, 2025 (all comparisons are year-over-year):

  • Fourth quarter net income of $7.4 million increased $20.0 million.
  • Net interest income increased during the fourth quarter due to increases in earning assets and yields on those assets while interest costs of liabilities decreased.
  • Correspondingly, the net interest margin in the fourth quarter was 3.60% compared to 3.04%.
  • Non-interest income for the full year increased $806 thousand or 9.2%, excluding the 2024 loss on the sale of securities.
  • Total assets were $2.425 billion, compared to $2.317 billion, an increase of 4.63%.
  • Loans receivable were $1.853 billion, compared to $1.713 billion, an increase of 8.2%.
  • Total deposits were $2.079 billion, compared to $1.859 billion, an increase of 11.8%.
  • Tangible Common Equity Ratio was 8.88%, versus 8.05%.
  • Tangible Book Value per share increased $3.05 to $22.90 from $19.85.

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.

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

  • Net Interest Spread (fte)
  • Net Interest Margin (fte)
  • Pre-Provision Net Revenue
  • Earnings per share
  • Return on average assets
  • Return on average tangible equity

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. Refer to the tables on pages 10-12 for Non-GAAP to GAAP reconciliations.

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)
December 31
2025 2024
ASSETS
Cash and due from banks $ 32,118 $ 27,562
Interest-bearing deposits with banks 12,318 44,777
Cash and cash equivalents 44,436 72,339
Securities available for sale 408,782 397,846
Loans receivable 1,853,422 1,713,638
Less: Allowance for credit losses 19,882 19,843
Net loans receivable 1,833,540 1,693,795
Regulatory stock, at cost 6,623 13,366
Bank premises and equipment, net 22,971 19,657
Bank owned life insurance 46,089 46,657
Foreclosed real estate owned 771 -
Accrued interest receivable 9,250 8,466
Deferred tax assets, net 14,654 17,696
Goodwill 29,266 29,266
Other intangible assets 98 152
Other assets 8,362 18,222
TOTAL ASSETS $ 2,424,842 $ 2,317,462
LIABILITIES
Deposits:
Non-interest bearing demand $ 419,597 $ 381,479
Interest-bearing 1,659,048 1,477,684
Total deposits 2,078,645 1,859,163
Short-term borrowings 14,714 113,069
Other borrowings 59,419 101,793
Accrued interest payable 12,138 12,615
Other liabilities 17,769 17,314
TOTAL LIABILITIES 2,182,685 2,103,954
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: 9,516,503 shares, 2024: 9,487,068 shares 952 949
Surplus 127,426 126,514
Retained earnings 141,130 124,963
Treasury stock, at cost: 2025: 222,645 shares, 2024: 214,161 shares (6,008 ) (5,797 )
Accumulated other comprehensive loss (21,343 ) (33,121 )
TOTAL STOCKHOLDERS' EQUITY 242,157 213,508
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,424,842 $ 2,317,462


NORWOOD FINANCIAL CORP
Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
Three Months Ended December 31, Twelve Months Ended December 31,
2025 2024 2025 2024
INTEREST INCOME
Loans receivable, including fees $ 28,666 $ 26,122 $ 109,910 $ 99,388
Securities 3,906 2,789 15,554 10,424
Other 474 574 1,064 2,768
Total Interest income 33,046 29,485 126,528 112,580
INTEREST EXPENSE
Deposits 11,334 10,984 43,681 42,334
Short-term borrowings 25 348 798 1,363
Other borrowings 743 1,528 3,725 6,692
Total Interest expense 12,102 12,860 48,204 50,389
NET INTEREST INCOME 20,944 16,625 78,324 62,191
PROVISION FOR CREDIT LOSSES $ 468 1,604 $ 1,773 2,673
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 20,476 15,021 76,551 59,518
OTHER INCOME
Service charges and fees 1,734 1,595 6,421 5,959
Income from fiduciary activities 228 224 1,033 943
Net realized (losses) gains on sales of securities - (19,962 ) - (19,962 )
Gains on sales of loans, net 83 50 326 195
Gains on sales of foreclosed real estate owned 0 0 0 32
Earnings and proceeds on life insurance policies 268 275 1,088 1,056
Other 198 159 749 626
Total other income 2,511 (17,659 ) 9,617 (11,151 )
8,811
OTHER EXPENSES
Salaries and employee benefits 7,155 6,690 26,928 25,018
Occupancy, furniture and equipment 1,390 1,291 5,478 5,049
Data processing and related operations 1,203 1,312 4,563 4,520
Taxes, other than income 192 163 770 615
Professional fees 898 504 3,148 2,173
FDIC Insurance assessment 423 335 1,552 1,344
Foreclosed real estate 0 9 142 54
Amortization of intangibles 11 15 54 69
Other 2,347 3,100 8,514 9,783
Total other expenses 13,619 13,419 51,149 48,625
INCOME BEFORE TAX (BENEFIT) EXPENSE 9,368 (16,057 ) 35,019 (258 )
INCOME TAX (BENEFIT) EXPENSE 1,926 (3,406 ) 7,264 (98 )
NET (LOSS) INCOME $ 7,442 $ (12,651 ) $ 27,755 $ (160 )
Basic (loss) earnings per share $ 0.80 $ (1.54 ) $ 3.01 $ (0.02 )
Diluted (loss) earnings per share $ 0.80 $ (1.54 ) $ 3.01 $ (0.02 )


NORWOOD FINANCIAL CORP
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)
For the Quarter Ended
December 31, 2025 September 30, 2025 December 31, 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 $ 46,766 $ 474 4.02 % $ 12,485 $ 144 4.58 % $ 46,629 $ 574 4.90 %
Securities available for sale:
Taxable 400,094 3,656 3.63 399,090 3,661 3.64 404,777 2,434 2.39
Tax-exempt (1) 44,700 316 2.80 44,074 312 2.81 65,628 449 2.72
Total securities available for sale (1) 444,794 3,972 3.54 443,164 3,973 3.56 470,405 2,883 2.44
Loans receivable (1) (4) (5) 1,835,902 28,786 6.22 1,802,046 28,267 6.22 1,690,650 26,246 6.18
Total interest-earning assets 2,327,462 33,232 5.66 2,257,695 32,384 5.69 2,207,684 29,703 5.35
Non-interest earning assets:
Cash and due from banks 31,388 31,050 27,283
Allowance for credit losses (20,070 ) (21,128 ) (18,741 )
Other assets 102,792 96,142 83,506
Total non-interest earning assets 114,110 106,064 92,048
Total Assets $ 2,441,572 $ 2,363,759 $ 2,299,732
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and money market $ 640,265 $ 3,324 2.06 $ 579,145 $ 2,900 1.99 $ 528,330 $ 3,017 2.27
Savings 198,463 106 0.21 200,559 113 0.22 209,362 162 0.31
Time 848,216 7,904 3.70 822,491 7,717 3.72 764,819 7,805 4.06
Total interest-bearing deposits 1,686,944 11,334 2.67 1,602,195 10,730 2.66 1,502,511 10,984 2.91
Short-term borrowings 2,461 25 4.03 8,740 105 4.77 46,267 348 2.99
Other borrowings 68,025 743 4.33 81,125 899 4.40 133,620 1,528 4.55
Total interest-bearing liabilities 1,757,430 12,102 2.73 1,692,060 11,734 2.75 1,682,398 12,860 3.04
Non-interest bearing liabilities:
Demand deposits 413,238 416,150 394,001
Other liabilities 30,781 28,816 30,352
Total non-interest bearing liabilities 444,019 444,966 424,353
Stockholders' equity 240,123 226,733 192,981
Total Liabilities and Stockholders' Equity $ 2,441,572 $ 2,363,759 $ 2,299,732
Net interest income/spread (tax equivalent basis) 21,130 2.93 % 20,650 2.94 % 16,843 2.31 %
Tax-equivalent basis adjustment (186 ) (192 ) (218 )
Net interest income $ 20,944 $ 20,458 $ 16,625
Net interest margin (tax equivalent basis) 3.60 % 3.63 % 3.04 %
(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
December 31, 2025 September 30, 2025 December 31, 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 $ 24,822 $ 1,064 4.29 % $ 17,427 $ 590 4.53 % $ 51,433 $ 2,768 5.38 %
Securities available for sale:
Taxable 402,976 14,563 3.61 403,947 10,907 3.61 400,050 8,948 2.24
Tax-exempt (1) 44,294 1,254 2.83 44,157 938 2.84 68,041 1,868 2.75
Total securities available for sale (1) 447,270 15,817 3.54 448,104 11,845 3.53 468,091 10,816 2.31
Loans receivable (1) (4) (5) 1,791,569 110,422 6.16 1,776,629 81,636 6.14 1,646,128 99,815 6.06
Total interest-earning assets 2,263,661 127,303 5.62 2,242,160 94,071 5.61 2,165,652 113,399 5.24
Non-interest earning assets:
Cash and due from banks 30,376 30,035 26,629
Allowance for credit losses (20,523 ) (20,675 ) (18,450 )
Other assets 96,136 94,389 76,340
Total non-interest earning assets 105,989 103,749 84,519
Total Assets $ 2,369,650 $ 2,345,909 $ 2,250,171
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and money market $ 585,289 $ 11,912 2.04 $ 566,762 $ 8,588 2.03 $ 476,106 $ 10,506 2.21
Savings 203,765 480 0.24 205,552 374 0.24 220,190 711 0.32
Time 821,710 31,289 3.81 812,778 23,385 3.85 744,895 31,117 4.18
Total interest-bearing deposits 1,610,764 43,681 2.71 1,585,092 32,347 2.73 1,441,191 42,334 2.94
Short-term borrowings 18,173 798 4.39 23,468 774 4.41 54,867 1,363 2.48
Other borrowings 84,543 3,725 4.41 90,110 2,981 4.42 146,195 6,692 4.58
Total interest-bearing liabilities 1,713,480 48,204 2.81 1,698,670 36,102 2.84 1,642,253 50,389 3.07
Non-interest bearing liabilities:
Demand deposits 399,948 395,470 393,616
Other liabilities 29,062 28,978 28,350
Total non-interest bearing liabilities 429,010 424,448 421,966
Stockholders' equity 227,160 222,791 185,952
Total Liabilities and Stockholders' Equity $ 2,369,650 $ 2,345,909 $ 2,250,171
Net interest income/spread (tax equivalent basis) 79,099 2.81 % 57,969 2.77 % 63,010 2.17 %
Tax-equivalent basis adjustment (775 ) (589 ) (819 )
Net interest income $ 78,324 $ 57,380 $ 62,191
Net interest margin (tax equivalent basis) 3.49 % 3.46 % 2.91 %
(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 December 31 2025
2024
Net interest income $ 20,944 $ 16,625
Net (loss) income 7,442 (12,651 )
Net interest spread (fully taxable equivalent) 2.93 % 2.31 %
Net interest margin (fully taxable equivalent) 3.60 % 3.04 %
Return on average assets 1.21 % -2.19 %
Return on average equity 12.30 % -26.08 %
Return on average tangible equity 14.01 % -30.77 %
Basic (loss) earnings per share $ 0.80 $ (1.54 )
Diluted (loss) earnings per share $ 0.80 $ (1.54 )
For the Twelve Months Ended December 31 2025
2024
Net interest income $ 78,324 $ 62,191
Net (loss) income 27,755 (160 )
Net interest spread (fully taxable equivalent) 2.81 % 2.17 %
Net interest margin (fully taxable equivalent) 3.49 % 2.91 %
Return on average assets 1.17 % -0.01 %
Return on average equity 12.22 % -0.09 %
Return on average tangible equity 14.03 % -0.10 %
Basic (loss) earnings per share $ 3.01 $ (0.02 )
Diluted (loss) earnings per share $ 3.01 $ (0.02 )
As of December 31 2025
2024
Total assets $ 2,424,842 $ 2,317,462
Total loans receivable 1,853,422 1,713,638
Allowance for credit losses 19,882 19,843
Total deposits 2,078,645 1,859,163
Stockholders' equity 242,157 213,508
Trust assets under management 213,912 205,097
Book value per share $ 26.06 $ 23.02
Tangible book value per share $ 22.90 $ 19.85
Equity to total assets 9.99 % 9.21 %
Allowance to total loans receivable 1.07 % 1.16 %
Nonperforming loans to total loans 0.34 % 0.46 %
Nonperforming assets to total assets 0.29 % 0.34 %


NORWOOD FINANCIAL CORP
Consolidated Balance Sheets (unaudited)
(dollars in thousands)
December 31 September 30 June 30 March 31 December 31
2025
2025
2025
2025
2024
ASSETS
Cash and due from banks $ 32,118 $ 50,348 $ 32,052 $ 31,729 $ 27,562
Interest-bearing deposits with banks 12,318 24,382 20,993 43,678 44,777
Cash and cash equivalents 44,436 74,730 53,045 75,407 72,339
Securities available for sale 408,782 403,989 402,460 408,742 397,846
Loans receivable 1,853,422 1,814,682 1,790,574 1,771,269 1,713,638
Less: Allowance for credit losses 19,882 19,911 20,908 20,442 19,843
Net loans receivable 1,833,540 1,794,771 1,769,666 1,750,827 1,693,795
Regulatory stock, at cost 6,623 6,163 7,538 7,616 13,366
Bank owned life insurance 46,089 45,821 46,099 46,914 46,657
Bank premises and equipment, net 22,971 22,292 21,608 20,273 19,657
Foreclosed real estate owned 771 - - - -
Goodwill and other intangibles 29,364 29,375 29,387 29,402 29,418
Other assets 32,266 34,810 35,547 36,863 44,384
TOTAL ASSETS $ 2,424,842 $ 2,411,951 $ 2,365,350 $ 2,376,044 $ 2,317,462
LIABILITIES
Deposits:
Non-interest bearing demand $ 419,597 $ 424,027 $ 406,358 $ 391,377 $ 381,479
Interest-bearing deposits 1,659,048 1,649,941 1,591,476 1,613,071 1,477,684
Total deposits 2,078,645 2,073,968 1,997,834 2,004,448 1,859,163
Borrowings 74,133 72,071 111,850 118,590 214,862
Other liabilities 29,907 31,007 30,241 32,299 29,929
TOTAL LIABILITIES 2,182,685 2,177,046 2,139,925 2,155,337 2,103,954
STOCKHOLDERS' EQUITY 242,157 234,905 225,425 220,707 213,508
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,424,842 $ 2,411,951 $ 2,365,350 $ 2,376,044 $ 2,317,462
NORWOOD FINANCIAL CORP
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)
December 31 September 30 June 30 March 31 December 31
Three months ended 2025
2025
2025
2025
2024
INTEREST INCOME
Loans receivable, including fees $ 28,666 $ 28,141 $ 27,115 $ 25,988 $ 26,122
Securities 3,906 3,907 3,871 3,870 2,789
Other 474 144 220 226 574
Total interest income 33,046 32,192 31,206 30,084 29,485
INTEREST EXPENSE
Deposits 11,334 10,730 10,869 10,748 10,984
Borrowings 768 1,004 1,272 1,479 1,876
Total interest expense 12,102 11,734 12,141 12,227 12,860
NET INTEREST INCOME 20,944 20,458 19,065 17,857 16,625
PROVISION FOR (RELEASE OF) CREDIT LOSSES 468 (502 ) 950 857 1,604
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION FOR CREDIT LOSSES 20,476 20,960 18,115 17,000 15,021
OTHER INCOME
Service charges and fees 1,734 1,660 1,514 1,513 1,595
Income from fiduciary activities 228 254 226 325 224
Net realized (losses) gains on sales of securities - - - - (19,962 )
Gains on sales of loans, net 83 130 65 47 50
Gains on sales of foreclosed real estate owned - - - - -
Earnings and proceeds on life insurance policies 268 268 266 286 275
Other 198 193 177 180 159
Total other income 2,511 2,505 2,248 2,351 (17,659 )
OTHER EXPENSES
Salaries and employee benefits 7,155 6,696 6,605 6,472 6,690
Occupancy, furniture and equipment, net 1,390 1,361 2,538 1,378 1,291
Foreclosed real estate - 1 137 4 9
FDIC insurance assessment 423 368 355 406 335
Other 4,651 4,508 2,896 3,804 5,094
Total other expenses 13,619 12,934 12,531 12,064 13,419
INCOME BEFORE TAX (BENEFIT) EXPENSE 9,368 10,531 7,832 7,287 (16,057 )
INCOME TAX (BENEFIT) EXPENSE 1,926 2,197 1,627 1,514 (3,406 )
NET (LOSS) INCOME $ 7,442 $ 8,334 $ 6,205 $ 5,773 $ (12,651 )
Basic (loss) earnings per share $ 0.80 $ 0.89 $ 0.67 $ 0.63 $ (1.54 )
Diluted (loss) earnings per share $ 0.80 $ 0.89 $ 0.67 $ 0.63 $ (1.54 )
Book Value per share $ 26.06 $ 25.36 $ 24.34 $ 23.84 $ 23.02
Tangible Book Value per share 22.90 22.19 21.17 20.66 19.85
Return on average assets (annualized) 1.21 % 1.40 % 1.06 % 1.01 % -2.19 %
Return on average equity (annualized) 12.30 % 14.58 % 11.14 % 10.73 % -26.08 %
Return on average tangible equity (annualized) 14.01 % 16.76 % 12.83 % 12.40 % -30.77 %
Net interest spread (fte) 2.93 % 2.94 % 2.75 % 2.61 % 2.31 %
Net interest margin (fte) 3.60 % 3.63 % 3.43 % 3.30 % 3.04 %
Allowance for credit losses to total loans 1.07 % 1.10 % 1.17 % 1.15 % 1.16 %
Net charge-offs to average loans (annualized) 0.13 % 0.13 % 0.08 % 0.07 % 0.12 %
Nonperforming loans to total loans 0.34 % 0.36 % 0.45 % 0.45 % 0.46 %
Nonperforming assets to total assets 0.29 % 0.31 % 0.34 % 0.33 % 0.34 %


NORWOOD FINANCIAL CORP
Reconciliation of Non-GAAP Adjustments for 2025 Merger Charges
Adjusted Return on Average Assets
(Dollars in thousands)
Three Months Three Months Twelve Months
Ended Ended Ended
September 30, December 31, December 31,
2025 2025 2025
Net (loss) income $ 8,334 $ 7,442 $ 27,755
Average assets 2,363,759 2,441,572 2,369,516
Return on average assets (annualized) 1.40 % 1.21 % 1.17 %
Net (loss) income 8,334 7,442 27,755
Merger Expenses 568 520 1,238
Tax effect at 21% (119 ) (109 ) (260 )
Adjusted Net Income (Non-GAAP) 8,783 7,853 28,733
Average assets 2,363,759 2,441,572 2,369,516
Adjusted return on average assets (annualized)
(Non-GAAP) 1.47 % 1.28 % 1.21 %
Adjusted Return on Average Tangible Shareholders' Equity
(Dollars in thousands)
Three Months Three Months Twelve Months
Ended Ended Ended
September 30, December 31, December 31,
2025 2025 2025
Net (loss) income $ 8,334 $ 7,442 $ 27,755
Average shareholders' equity 226,733 240,123 227,160
Average intangible assets 29,380 29,369 29,388
Average tangible shareholders' equity 197,353 210,754 197,772
Return on average tangible shareholders' equity (annualized) 16.76 % 14.01 % 14.03 %
Net (loss) income 8,334 7,442 27,755
Merger Expenses 568 520 1,238
Tax effect at 21% (119 ) (109 ) (260 )
Adjusted Net Income (Non-GAAP) 8,783 7,853 28,733
Average tangible shareholders' equity 197,353 210,754 197,772
Adjusted return on average shareholders' equity (annualized)
(Non-GAAP) 17.66 % 14.78 % 14.53 %
Adjusted Earnings Per Share
(Dollars in thousands)
Three Months Three Months Twelve Months
Ended Ended Ended
September 30, December 31, December 31,
2025 2025 2025
GAAP-Based Earnings Per Share, Basic $ 0.89 $ 0.80 $ 3.01
GAAP-Based Earnings Per Share, Diluted $ 0.89 $ 0.80 $ 3.01
Net (Loss) Income 8,334 7,442 27,755
Merger Expenses 568 520 1,238
Tax effect at 21% (119 ) (109 ) (260 )
Adjusted Net Income (Non-GAAP) 8,783 7,853 28,733
Adjusted Earnings per Share, Basic (Non-GAAP) $ 0.94 $ 0.84 $ 3.11
Adjusted Earnings per Share, Diluted (Non-GAAP) $ 0.94 $ 0.84 $ 3.11
Tangible Book Value
(Dollars in thousands)
September 30, December 31,
2025 2025
Total shareholders' equity 234,905 242,157
Adjustments:
Goodwill (29,266 ) (29,266 )
Other intangible assets (109 ) (98 )
Tangible common equity (Non-GAAP) 205,530 212,793
Common shares outstanding 9,262,325 9,293,858
Book value per common share 25.36 26.06
Tangible book value per common share (Non-GAAP) 22.19 22.90


NORWOOD FINANCIAL CORP
Reconciliation of Non-GAAP Adjustments for 2024 Loss on Sale of Securities
Adjusted Return on Average Assets
(Dollars in thousands)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2024 2024
Net (loss) income $ (12,651 ) $ (160 )
Average assets 2,299,732 2,250,171
Return on average assets (annualized) -2.19 % -0.01 %
Net (loss) income (12,651 ) (160 )
Net realized losses on sale of securities 19,962 19,962
Tax effect at 21% (4,192 ) (4,192 )
Adjusted Net Income (Non-GAAP) 3,119 15,610
Average assets 2,299,732 2,250,171
Adjusted return on average assets (annualized)
(Non-GAAP) 0.54 % 0.69 %
Adjusted Return on Average Tangible Shareholders' Equity
(Dollars in thousands)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2024 2024
Net (loss) income $ (12,651 ) $ (160 )
Average shareholders' equity 192,981 185,952
Average intangible assets 29,424 29,449
Average tangible shareholders' equity 163,557 156,503
Return on average tangible shareholders' equity (annualized) -30.77 % -0.10 %
Net (loss) income (12,651 ) (160 )
Net realized losses on sale of securities 19,962 19,962
Tax effect at 21% (4,192 ) (4,192 )
Adjusted Net Income (Non-GAAP) 3,119 15,610
Average tangible shareholders' equity 163,557 156,503
Adjusted return on average shareholders' equity (annualized)
(Non-GAAP) 7.59 % 9.97 %
Adjusted Earnings Per Share
(Dollars in thousands)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2024 2024
GAAP-Based Earnings Per Share, Basic $ (1.54 ) $ (0.02 )
GAAP-Based Earnings Per Share, Diluted $ (1.54 ) $ (0.02 )
Net (Loss) Income (12,651 ) (160 )
Net realized losses on sale of securities 19,962 19,962
Tax effect at 21% (4,192 ) (4,192 )
Adjusted Net Income (Non-GAAP) 3,119 15,610
Adjusted Earnings per Share, Basic (Non-GAAP) $ 0.38 $ 1.93
Adjusted Earnings per Share, Diluted (Non-GAAP) $ 0.38 $ 1.93
Tangible Book Value
(Dollars in thousands)
December 31,
2024
Total shareholders' equity 213,508
Adjustments:
Goodwill (29,266 )
Other intangible assets (152 )
Tangible common equity (Non-GAAP) 184,090
Common shares outstanding 9,272,906
Book value per common share 23.02
Tangible book value per common share (Non-GAAP) 19.85



NORWOOD FINANCIAL CORP
Reconciliation of Non-GAAP Adjustments for 2025 Merger Charges and Loss on Sale of Securities
Pre Provision Net Revenue
(Dollars in thousands)
Three Months Ended December 31, Twelve Months Ended December 31,
2025 2024 2025 2024
Income before tax expense (GAAP) $ 9,368 $ (16,057 ) $ 35,019 $ (258 )
Provision for (release of) credit losses 468 1,604 1,773 2,673
Pre provision net revenue (PPNR) (Non-GAAP) 9,836 (14,453 ) 36,792 2,415
Merger expenses and net realize losses on sale of securities 520 19,962 1,238 19,962
PPNR adjusted for merger expenses (Non-GAAP) 10,356 5,509 38,030 22,377
Three Months Ended
September 30,
2025
Income before tax expense (GAAP) $ 10,531
Provision for (release of) credit losses (502 )
Pre provision net revenue (PPNR) (Non-GAAP) 10,029
Merger expenses 568
PPNR adjusted for merger expenses (Non-GAAP) 10,597