Norwood Financial Corp announces Fourth Quarter and Full Year 2025 Results

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