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Norwood Financial Corp announces Second Quarter 2025 Results

1. NWFL reports $0.67 EPS, up 29% from 2024. 2. Net interest margin increased 63 basis points year-over-year. 3. Loans and deposits have grown robustly, indicating strong demand. 4. Capital improves with higher earnings and lower AOCI adjustments. 5. 'Every Day Better' campaign strengthens brand perception among customers.

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Why Bullish?

NWFL's strong EPS growth suggests a positive earnings trajectory, similar to past performance spikes, which can lead to increased investor confidence and higher stock prices.

How important is it?

The reported financial results significantly reflect NWFL's operational health, influencing investor sentiment positively.

Why Short Term?

The immediate effects of quarterly results often drive prices quickly, as seen in previous earnings announcements that led to upward momentum for banking shares.

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Quarterly and Year-to-Date Highlights: Fully diluted EPS of $0.67, a 29% increase over the same period in 2024Return on assets rose 31 basis points to 1.06% from 2Q 2024.Net interest margin increased 13 basis points vs. the prior quarter and 63 basis points over the prior year.Loans grew at a 4.4% and 8.2% annualized rate during the second quarter and year-to-date, respectively.Deposits grew year-to-date at an annualized rate of 15% while deposit costs fell 20 basis points since the 4th quarter of 2024.Capital continues to improve on increased earnings and lower accumulated other comprehensive income (AOCI) adjustment. HONESDALE, Pa., July 22, 2025 (GLOBE NEWSWIRE) -- Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced results for the three months and six months ended June 30, 2025. Jim Donnelly, President and Chief Executive Officer, stated, “Our company’s performance continues to strengthen, due to increased yields coming out of our 2024 4th quarter repositioning, as well as improved results in all our business lines. In the first half of 2025 we achieved robust growth in both loans and deposits while improving yields as well. We enter the second half of 2025 on solid footing and with good momentum” Mr. Donnelly continued, “I am proud of the performance from the entire Norwood team as they remain focused on delivering the products and services that help our customers achieve their goals.  During the second quarter we launched our ‘Every Day Better’ campaign to high acclaim from customers, employees, and community members.  This full rebrand enabled us to articulate our values and mission, stand out from competitors, and unite and energize our company culture. Building on this great combination of a high-performing team and strong brand, I am confident that we are on our way to creating a bright future for us, our customers, and our shareholders.” Selected Financial Highlights (unaudited) (dollars in thousands, except per share data)Year-Over YearLinked QuarterYear-to-Date3 Months Ended3 Months Ended6 Months EndedJun-25Jun-24ChangeMar-25ChangeJun-25Jun-24ChangeNet interest income$19,065 $14,925 $4,140$17,857 $1,208$36,923 $29,635 $7,288Net interest spread (fte) 2.75% 2.06%69 bps 2.61%14 bps 2.68% 2.07%30 bpsNet interest margin (fte) 3.43% 2.80%63 bps 3.30%13 bps 3.37% 2.80%26 bpsNet income$6,205 $4,213 $1,992$5,773 $432$11,978 $8,646 $3,332Diluted earnings per share$0.67 $0.52 $0.15$0.63 $0.04$1.30 $1.07 $0.23Return on average assets 1.06% 0.75%31 bps 1.01%5 bps 1.03% 0.78%25 bpsReturn on tangible equity 12.83% 9.44%339 bps 12.40%43 bps 12.62% 11.49%113 bps Discussion of financial results for the three months ended June 30, 2025:The Company had net income of $6.2 million for the three months ended June 30, 2025, an increase of $2.0 million over the same period last year.Net interest income increased during the second quarter of 2025 compared to the second quarter of 2024 due to increases in asset yields while yields on liabilities decreased.Correspondingly, the net interest margin in the second quarter of 2025 was 3.43% compared to 2.80% in the second quarter of 2024.Non-interest income in the first 6 months of 2025 increased $386 thousand or 9.2% over the same period in 2024.The efficiency ratio for the second quarter of 2025 was 58.7% compared to 66.7% in the second quarter of 2024.As of June 30, 2025, total assets were $2.365 billion, compared to $2.235 billion at June 30, 2024, an increase of 5.82%.Loans receivable were $1.791 billion at June 30, 2025, compared to $1.641 billion at June 30, 2024, an increase of 9.1% .Total deposits were $1.997 billion at June 30, 2025, compared to $1.811 billion at June 30, 2024, an increase of 10.3%.Tangible Common Equity was 8.39% as of June 30, 2025, versus 6.92% at June 30, 2024.Tangible Book Value per share increased $1.32 from $19.85 at December 31, 2024, to $21.17 at June 30, 2025.   Norwood Financial Corp is the parent company of Wayne Bank, which operates from sixteen 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”. Non-GAAP Financial Measures (unaudited) The following tables reconcile certain Non-GAAP financial measures references in this release:  Three months ended  Six months ended (dollars in thousands)June 30 June 30  2025  2024   2025  2024       Net Interest Income$19,065 $14,925  $36,923 $29,635 Taxable equivalent basis adjustment using 21% marginal tax rate 199  199   397  394 Net interest income on a fully taxable equivalent basis$19,264 $15,124  $37,320 $30,029              Three months ended  Six months ended (dollars in thousands)June 30 June 30  2025  2024   2025  2024       Average equity$223,351 $179,494  $220,787 $180,791 Average goodwill and other intangibles (29,394) (29,457)  (29,402) (29,466)Average tangible equity$193,957 $150,037  $191,385 $151,325        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” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Those risks and uncertainties include, among other things, changes in federal and state laws, changes in interest rates, our ability to maintain strong credit quality metrics, our ability to have future performance, our ability to control core operating expenses and costs, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Contact: John M. McCaffery Executive Vice President & Chief Financial Officer NORWOOD FINANCIAL CORP 272-304-3003 www.waynebank.com NORWOOD FINANCIAL CORP    Consolidated Balance Sheets     (dollars in thousands, except share and per share data)    (unaudited)      June 30  2025 2024ASSETS    Cash and due from banks$32,052 $29,903 Interest-bearing deposits with banks 20,993  39,492 Cash and cash equivalents 53,045  69,395      Securities available for sale 402,460  397,578 Loans receivable 1,790,574  1,641,355 Less: Allowance for credit losses 20,908  17,806 Net loans receivable 1,769,666  1,623,549 Regulatory stock, at cost 7,538  6,443 Bank premises and equipment, net 21,608  18,265 Bank owned life insurance 46,099  46,121 Foreclosed real estate owned -  - Accrued interest receivable 8,642  8,329 Deferred tax assets, net 17,693  21,707 Goodwill 29,266  29,266 Other intangible assets 121  183 Other assets 9,212  14,480 TOTAL ASSETS$2,365,350 $2,235,316      LIABILITIES    Deposits:    Non-interest bearing demand$406,358 $391,849 Interest-bearing 1,591,476  1,419,323 Total deposits 1,997,834  1,811,172 Short-term borrowings 26,500  62,335 Other borrowings 85,350  148,087 Accrued interest payable 10,975  13,329 Other liabilities 19,266  18,206 TOTAL LIABILITIES 2,139,925  2,053,129      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: 9,490,505 shares, 2024: 8,311,851 shares949  831 Surplus 126,990  98,082 Retained earnings 131,199  139,070 Treasury stock, at cost: 2025: 229,983 shares, 2024: 221,540 shares (6,208) (5,977)Accumulated other comprehensive loss (27,505) (49,819)TOTAL STOCKHOLDERS' EQUITY 225,425  182,187      TOTAL LIABILITIES AND    STOCKHOLDERS' EQUITY$2,365,350 $2,235,316       NORWOOD FINANCIAL CORPConsolidated Statements of Income (dollars in thousands, except per share data)  (unaudited)  Three Months Ended June 30,   Six Months Ended June 30,   2025 2024   2025 2024 INTEREST INCOME          Loans receivable, including fees$27,115$24,121  $53,103$47,802 Securities 3,871 2,584   7,742 5,109 Other 220 966   446 1,697 Total Interest income 31,206 27,671   61,291 54,608            INTEREST EXPENSE          Deposits 10,869 10,687   21,617 20,796 Short-term borrowings 211 356   669 692 Other borrowings 1,061 1,703   2,082 3,485 Total Interest expense 12,141 12,746   24,368 24,973 NET INTEREST INCOME 19,065 14,925   36,923 29,635 PROVISION FOR (RELEASE OF) CREDIT LOSSES950 347   1,807 (276)NET INTEREST INCOME AFTER PROVISION FOR (RELEASE OF) CREDIT LOSSES 18,115 14,578   35,116 29,911                       OTHER INCOME          Service charges and fees 1,514 1,504   3,027 2,847 Income from fiduciary activities 226 225   551 463 Gains on sales of loans, net 65 36   112 42 Earnings and proceeds on life insurance policies266 253   552 520 Other 177 189   357 341 Total other income 2,248 2,207   4,599 4,213            OTHER EXPENSES          Salaries and employee benefits 6,605 5,954   13,077 12,090 Occupancy, furniture and equipment 1,349 1,229   2,727 2,489 Data processing and related operations 1,189 1,024   2,274 2,046 Taxes, other than income 192 179   385 272 Professional fees 623 508   1,282 1,092 FDIC Insurance assessment 355 309   761 670 Foreclosed real estate 137 15   141 36 Amortization of intangibles 15 19   30 38 Other 2,066 2,207   3,918 4,442 Total other expenses 12,531 11,444   24,595 23,175            INCOME BEFORE TAX EXPENSE 7,832 5,341   15,120 10,949 INCOME TAX EXPENSE 1,627 1,128   3,142 2,303 NET INCOME$6,205$4,213   $11,978$8,646            Basic earnings per share$0.67$0.52  $1.30$1.07            Diluted earnings per share$0.67$0.52  $1.30$1.07             NORWOOD FINANCIAL CORPNET INTEREST MARGIN ANALYSIS(dollars in thousands)  For the Quarter Ended June 30, 2025March 31, 2025June 30, 2024 Average Average Average Average Average Average  BalanceInterest   Rate  BalanceInterest    Rate  BalanceInterest    Rate   (2)(1)(3) (2)(1)(3) (2)(1)(3) Assets                  Interest-earning assets:                    Interest-bearing deposits with banks$19,085 $220 4.62 %$20,802 $226 4.41 %$69,173 $967 5.62 %   Securities available for sale:                       Taxable 404,428  3,624 3.59   408,427  3,623 3.60   401,014  2,206 2.21       Tax-exempt (1) 44,158  312 2.83   44,242  312 2.86   69,126  477 2.78          Total securities available for sale (1) 448,586  3,936 3.52   452,669  3,935 3.53   470,140  2,683 2.30       Loans receivable (1) (4) (5) 1,783,626  27,249 6.13   1,743,572  26,120 6.08   1,629,283  24,220 5.98          Total interest-earning assets  2,251,297  31,405 5.60   2,217,043  30,281 5.54   2,168,596  27,870 5.17  Non-interest earning assets:                     Cash and due from banks 30,323      28,705      26,422        Allowance for credit losses (20,733)     (20,154)     (18,023)       Other assets 94,922      93,131      69,718             Total non-interest earning assets  104,512      101,682      78,117     Total Assets $2,355,809     $2,318,725     $2,246,713     Liabilities and Stockholders' Equity                  Interest-bearing liabilities:                     Interest-bearing demand and money market$573,904 $2,887 2.02  $546,884 $2,801 2.08  $450,918 $2,397 2.14     Savings 204,318  119 0.23   211,905  142 0.27   233,676  286 0.49     Time 821,725  7,863 3.84   793,803  7,805 3.99   755,224  8,004 4.26        Total interest-bearing deposits  1,599,947  10,869 2.72   1,552,592  10,748 2.81   1,439,818  10,687 2.99     Short-term borrowings 17,757  211 4.77   44,297  458 4.19   61,689  356 2.32     Other borrowings 95,792  1,061 4.44   93,549  1,021 4.43   149,442  1,703 4.58     Total interest-bearing liabilities  1,713,496  12,141 2.84   1,690,438  12,227 2.93   1,650,949  12,746 3.11  Non-interest bearing liabilities:                     Demand deposits 389,323      380,544      387,962        Other liabilities 29,639      29,549      28,308           Total non-interest bearing liabilities  418,962      410,093      416,270        Stockholders' equity 223,351      218,194      179,494     Total Liabilities and Stockholders' Equity $2,355,809     $2,318,725     $2,246,713     Net interest income/spread (tax equivalent basis)   19,264 2.75 %   18,054 2.61 %   15,124 2.06 %Tax-equivalent basis adjustment   (199)     (197)     (199)  Net interest income  $19,065     $17,857     $14,925   Net interest margin (tax equivalent basis)    3.43 %    3.30 %    2.80 %                                      (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.                                                          Year to Date June 30, 2025March 31, 2025June 30, 2024 Average Average Average Average Average Average  BalanceInterest   Rate  BalanceInterest    Rate  BalanceInterest    Rate   (2)(1)(3) (2)(1)(3) (2)(1)(3) Assets                  Interest-earning assets:                    Interest-bearing deposits with banks$19,939 $446 4.51 %$20,802 $226 4.41 %$61,551 $1,697 5.54 %   Securities available for sale:                       Taxable 406,416  7,247 3.60   408,427  3,623 3.60   401,645  4,353 2.18       Tax-exempt (1) 44,199  626 2.86   44,242  312 2.86   69,503  958 2.77          Total securities available for sale (1) 450,615  7,873 3.52   452,669  3,935 3.53   471,148  5,311 2.27       Loans receivable (1) (4) (5) 1,763,710  53,369 6.10   1,743,572  26,120 6.08   1,620,694  47,994 5.96          Total interest-earning assets  2,234,264  61,688 5.57   2,217,043  30,281 5.54   2,153,393  55,002 5.14  Non-interest earning assets:                     Cash and due from banks 29,519      28,705      25,508        Allowance for credit losses (20,445)     (20,154)     (18,559)       Other assets 94,031      93,131      71,705             Total non-interest earning assets  103,105      101,682      78,654     Total Assets $2,337,369     $2,318,725     $2,232,047     Liabilities and Stockholders' Equity                  Interest-bearing liabilities:                     Interest-bearing demand and money market$560,469 $5,688 2.05  $546,884 $2,801 2.08  $450,372 $4,707 2.10     Savings 208,090  261 0.25   211,905  142 0.27   234,611  536 0.46     Time 807,841  15,668 3.91   793,803  7,805 3.99   740,211  15,553 4.23        Total interest-bearing deposits  1,576,400  21,617 2.77   1,552,592  10,748 2.81   1,425,194  20,796 2.93  Short-term borrowings 30,954  669 4.36   44,297  458 4.19   59,843  692 2.33  Other borrowings 94,676  2,082 4.43   93,549  1,021 4.43   152,470  3,485 4.60     Total interest-bearing liabilities  1,702,030  24,368 2.89   1,690,438  12,227 2.93   1,637,507  24,973 3.07  Non-interest bearing liabilities:                     Demand deposits 384,958      380,544      387,014        Other liabilities 29,594      29,549      26,735           Total non-interest bearing liabilities  414,552      410,093      413,749        Stockholders' equity 220,787      218,194      180,791     Total Liabilities and Stockholders' Equity $2,337,369     $2,318,725     $2,232,047     Net interest income/spread (tax equivalent basis)   37,320 2.68 %   18,054 2.61 %   30,029 2.07 %Tax-equivalent basis adjustment   (397)     (197)     (394)  Net interest income  $36,923     $17,857     $29,635   Net interest margin (tax equivalent basis)    3.37 %    3.30 %    2.80 %                                      (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 CORPFinancial Highlights (Unaudited)(dollars in thousands, except per share data)     For the Three Months Ended June 30 2025 2024     Net interest income$19,065 $14,925 Net income 6,205  4,213      Net interest spread (fully taxable equivalent) 2.75% 2.06%Net interest margin (fully taxable equivalent) 3.43% 2.80%Return on average assets 1.06% 0.75%Return on average equity 11.14% 9.44%Return on average tangible equity 12.83% 11.29%Basic earnings per share$0.67 $0.52 Diluted earnings per share$0.67 $0.52      For the Six Months Ended June 30 2025 2024     Net interest income 36,923  29,635 Net income 11,978  8,646      Net interest spread (fully taxable equivalent) 2.68% 2.07%Net interest margin (fully taxable equivalent) 3.37% 2.80%Return on average assets 1.03% 0.78%Return on average equity 10.94% 9.62%Return on average tangible equity 12.62% 11.49%Basic earnings per share 1.30  1.07 Diluted earnings per share 1.30  1.07                As of June 30 2025 2024     Total assets$2,365,350 $2,235,316 Total loans receivable 1,790,574  1,641,355 Allowance for credit losses 20,908  17,806 Total deposits 1,997,834  1,811,172 Stockholders' equity 225,425  182,187 Trust assets under management 207,402  201,079      Book value per share$24.34 $22.52 Tangible book value per share$21.17 $18.88 Equity to total assets 9.53% 8.15%Allowance to total loans receivable 1.17% 1.08%Nonperforming loans to total loans 0.45% 0.47%Nonperforming assets to total assets 0.34% 0.34%      NORWOOD FINANCIAL CORPConsolidated Balance Sheets (unaudited)(dollars in thousands)     June 30    March 31    December 31    September 30    June 30  2025 2025 2024 2024 2024ASSETS             Cash and due from banks $32,052  $31,729  $27,562  $47,072  $29,903    Interest-bearing deposits with banks 20,993  43,678  44,777  35,808  39,492         Cash and cash equivalents 53,045  75,407  72,339  82,880  69,395              Securities available for sale 402,460  408,742  397,846  396,891  397,578   Loans receivable 1,790,574  1,771,269  1,713,638  1,675,139  1,641,356    Less: Allowance for credit losses 20,908  20,442  19,843  18,699  17,807      Net loans receivable 1,769,666  1,750,827  1,693,795  1,656,440  1,623,549   Regulatory stock, at cost 7,538  7,616  13,366  6,329  6,443   Bank owned life insurance 46,099  46,914  46,657  46,382  46,121   Bank premises and equipment, net 21,608  20,273  19,657  18,503  18,264   Foreclosed real estate owned -  -  -  -  -   Goodwill and other intangibles 29,387  29,402  29,418  29,433  29,449   Other assets 35,547  36,863  44,384  42,893  44,517           TOTAL ASSETS $2,365,350  $2,376,044  $2,317,462  $2,279,751  $2,235,316            LIABILITIES             Deposits:               Non-interest bearing demand $406,358  $391,377  $381,479  $420,967  $391,849      Interest-bearing deposits 1,591,476  1,613,071  1,477,684  1,434,284  1,419,323           Total deposits 1,997,834  2,004,448  1,859,163  1,855,251  1,811,172    Borrowings 111,850  118,590  214,862  197,412  210,422    Other liabilities 30,241  32,299  29,929  31,434  31,534             TOTAL LIABILITIES 2,139,925  2,155,337  2,103,954  2,084,097  2,053,128            STOCKHOLDERS' EQUITY 225,425  220,707  213,508  195,654  182,188                      TOTAL LIABILITIES AND                           STOCKHOLDERS' EQUITY $2,365,350  $2,376,044  $2,317,462  $2,279,751  $2,235,316                                  NORWOOD FINANCIAL CORPConsolidated Statements of Income (unaudited)(dollars in thousands, except per share data)     June 30    March 31    December 31    September 30    June 30Three months ended 2025 2025 2024 2024 2024INTEREST INCOME              Loans receivable, including fees $27,115  $25,988  $26,122  $25,464  $24,121     Securities 3,871  3,870  2,789  2,526  2,584     Other 220  226  574  497  966          Total interest income 31,206  30,084  29,485  28,487  27,671            INTEREST EXPENSE              Deposits 10,869  10,748  10,984  10,553  10,687     Borrowings 1,272  1,479  1,876  2,003  2,059         Total interest expense 12,141  12,227  12,860  12,556  12,746 NET INTEREST INCOME 19,065  17,857  16,625  15,931  14,925 PROVISION FOR (RELEASE OF) CREDIT LOSSES950  857  1,604  1,345  347 NET INTEREST INCOME AFTER (RELEASE OF) PROVISION             FOR CREDIT LOSSES 18,115  17,000  15,021  14,586  14,578            OTHER INCOME              Service charges and fees 1,514  1,513  1,595  1,517  1,504     Income from fiduciary activities 226  325  224  256  225     Net realized (losses) gains on sales of securities -  -  (19,962) -  -     Gains on sales of loans, net 65  47  50  103  36     Gains on sales of foreclosed real estate owned -  -  -  -  32     Earnings and proceeds on life insurance policies 266  286  275  261  253     Other 177  180  159  158  157            Total other income 2,248  2,351  (17,659) 2,295  2,207            OTHER EXPENSES              Salaries and employee benefits 6,605  6,472  6,690  6,239  5,954     Occupancy, furniture and equipment, net 2,538  1,378  1,291  1,269  1,229     Foreclosed real estate 137  4  9  9  15     FDIC insurance assessment 355  406  335  339  309     Other 2,896  3,804  5,094  4,175  3,937              Total other expenses 12,531  12,064  13,419  12,031  11,444            INCOME BEFORE TAX (BENEFIT) EXPENSE 7,832  7,287  (16,057) 4,850  5,341 INCOME TAX (BENEFIT) EXPENSE 1,627  1,514  (3,406) 1,006  1,128 NET (LOSS) INCOME $6,205  $5,773  $(12,651) $3,844  $4,213            Basic (loss) earnings per share $0.67  $0.63  $(1.54) $0.48  $0.52            Diluted (loss) earnings per share $0.67  $0.63  $(1.54) $0.48  $0.52            Book Value per share$24.34 $23.84 $23.02 $24.18 $22.52 Tangible Book Value per share 21.17  20.66  19.85  20.54  18.88            Return on average assets (annualized) 1.06% 1.01% -2.19% 0.68% 0.75%Return on average equity (annualized) 11.14% 10.73% -26.08% 8.09% 9.44%Return on average tangible equity (annualized) 12.83% 12.40% -30.77% 9.58% 11.29%           Net interest spread (fte) 2.75% 2.61% 2.31% 2.23% 2.06%Net interest margin (fte) 3.43% 3.30% 3.04% 2.99% 2.80%           Allowance for credit losses to total loans 1.17% 1.15% 1.16% 1.12% 1.08%Net charge-offs to average loans (annualized) 0.08% 0.07% 0.12% 0.08% 0.13%Nonperforming loans to total loans 0.45% 0.45% 0.46% 0.47% 0.47%Nonperforming assets to total assets 0.34% 0.33% 0.34% 0.35% 0.34%

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