Fully diluted EPS of $0.89, an 85% increase over the same period in 2024
Return on assets rose 72 basis points to 1.40% from 3Q 2024.
Net interest margin increased 20 basis points vs. the prior quarter and 64 basis points over the prior year.
Loans grew at a 5.4% and 7.3% annualized rate during the third quarter and year-to-date, respectively.
Deposits grew year-to-date at an annualized rate of 15% while deposit costs fell 19 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., Oct. 22, 2025 (GLOBE NEWSWIRE) -- Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced results for the three months and nine months ended September 30, 2025.
Jim Donnelly, President and Chief Executive Officer, stated, "Our quarterly results continue to demonstrate the strength of our community banking franchise. We have been able to maintain solid growth, while improving profitability and efficiency."
Mr. Donnelly continued, "Our disciplined approach to growth, improving margins, and credit quality have allowed us to deliver strong quarterly 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. We have improved our credit quality from already sound levels. This is a result of our well-managed and consistent approach to credit. We have also improved our fee income lines of business."
"During the second quarter we launched our ‘Every Day Better' brand 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 believe 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 Year
Linked Quarter
Year-to-Date
3 Months Ended
3 Months Ended
9 Months Ended
Sep-25
Sep-24
Change
Jun-25
Change
Sep-25
Sep-24
Change
Net interest income
$
20,458
$
15,931
$
4,527
$
19,065
$
1,393
$
57,380
$
45,566
$
11,814
Net interest spread (fte)1
2.94%
2.23%
71 bps
2.75%
19 bps
2.77%
2.12%
65 bps
Net interest margin (fte)1
3.63%
2.99%
64 bps
3.43%
20 bps
3.46%
2.87%
59 bps
Pre Provision Net Revenue (PPNR)1
$
10,029
$
6,195
$
3,834
$
8,782
$
1,247
$
26,956
$
16,868
$
10,088
Net income
$
8,334
$
3,844
$
4,490
$
6,205
$
2,129
$
20,313
$
12,491
$
7,822
Diluted earnings per share
$
0.89
$
0.48
$
0.41
$
0.67
$
0.22
$
2.22
$
1.55
$
0.67
Return on average assets
1.40%
0.68%
72 bps
1.06%
34 bps
1.16%
0.75%
41 bps
Return on average tangible equity
16.76%
9.58%
718 bps
12.83%
393 bps
14.04%
10.82%
322 bps
1 - Non GAAP ratio. See Non-GAAP Reconciliation
Excluding merger charges (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-25
Sep-24
Change
Jun-25
Change
Sep-25
Sep-24
Change
Pre Provision Net Revenue (PPNR)
$
10,597
$
6,195
$
4,402
$
8,932
$
1,665
$
27,674
$
16,868
$
10,806
Net income
$
8,783
$
3,844
$
4,939
$
6,324
$
2,460
$
20,880
$
12,491
$
8,389
Diluted earnings per share
$
0.94
$
0.48
$
0.46
$
0.69
$
0.25
$
2.28
$
1.55
$
0.73
Return on average assets
1.47%
0.68%
79 bps
1.08%
39 bps
1.19%
0.75%
44 bps
Return on average tangible equity
17.66%
9.58%
808 bps
13.08%
458 bps
14.43%
10.82%
361 bps
Discussion of financial results for the three months ended September 30, 2025:
The Company had net income of $8.3 million for the three months ended September 30, 2025, an increase of $4.5 million over the same period last year.
Net interest income increased during the third quarter of 2025 compared to the third quarter of 2024 due to increases in asset yields while interest costs of liabilities decreased.
Correspondingly, the net interest margin in the third quarter of 2025 was 3.63% compared to 2.99% in the third quarter of 2024.
Non-interest income in the first 9 months of 2025 increased $597 thousand or 9.2% over the same period in 2024.
The efficiency ratio for the third quarter of 2025 was 56.3% compared to 66.0% in the third quarter of 2024.
As of September 30, 2025, total assets were $2.412 billion, compared to $2.280 billion at September 30, 2024, an increase of 5.80%.
Loans receivable were $1.815 billion at September 30, 2025, compared to $1.675 billion at September 30, 2024, an increase of 8.3%.
Total deposits were $2.074 billion at September 30, 2025, compared to $1.855 billion at September 30, 2024, an increase of 11.8%.
Tangible Common Equity was 8.63% as of September 30, 2025, versus 7.57% at September 30, 2024.
Tangible Book Value per share increased $2.34 from $19.85 at December 31, 2024, to $22.19 at September 30, 2025.
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.
Contact:
John M. McCaffery
Executive Vice President & Chief Financial Officer
NORWOOD FINANCIAL CORP
272-304-3003
www.waynebank.com
NORWOOD FINANCIAL CORP
Consolidated Balance Sheets
(dollars in thousands, except share and per share data)
(unaudited)
September 30
2025
2024
ASSETS
Cash and due from banks
$
50,348
$
47,072
Interest-bearing deposits with banks
24,382
35,808
Cash and cash equivalents
74,730
82,880
Securities available for sale
403,989
396,891
Loans receivable
1,814,682
1,675,139
Less: Allowance for credit losses
19,911
18,699
Net loans receivable
1,794,771
1,656,440
Regulatory stock, at cost
6,163
6,329
Bank premises and equipment, net
22,292
18,503
Bank owned life insurance
45,821
46,382
Foreclosed real estate owned
-
-
Accrued interest receivable
8,686
8,062
Deferred tax assets, net
16,528
18,818
Goodwill
29,266
29,266
Other intangible assets
109
167
Other assets
9,596
16,013
TOTAL ASSETS
$
2,411,951
$
2,279,751
LIABILITIES
Deposits:
Non-interest bearing demand
$
424,027
$
420,967
Interest-bearing
1,649,941
1,434,284
Total deposits
2,073,968
1,855,251
Short-term borrowings
-
52,453
Other borrowings
72,071
144,959
Accrued interest payable
9,823
12,688
Other liabilities
21,184
18,746
TOTAL LIABILITIES
2,177,046
2,084,097
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: 9,491,558 shares, 2024: 8,311,851 shares
949
831
Surplus
127,190
98,330
Retained earnings
136,662
140,489
Treasury stock, at cost: 2025: 229,233 shares, 2024: 221,140 shares
(6,188
)
(5,969
)
Accumulated other comprehensive loss
(23,708
)
(38,027
)
TOTAL STOCKHOLDERS' EQUITY
234,905
195,654
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
$
2,411,951
$
2,279,751
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,
2025
2024
2025
2024
INTEREST INCOME
Loans receivable, including fees
$
28,141
$
25,464
$
81,244
$
73,266
Securities
3,907
2,526
11,648
7,635
Other
144
497
590
2,194
Total Interest income
32,192
28,487
93,482
83,095
INTEREST EXPENSE
Deposits
10,730
10,553
32,347
31,349
Short-term borrowings
105
323
774
1,015
Other borrowings
899
1,680
2,981
5,165
Total Interest expense
11,734
12,556
36,102
37,529
NET INTEREST INCOME
20,458
15,931
57,380
45,566
(RELEASE OF) PROVISION FOR CREDIT LOSSES
(502
)
1,345
1,305
1,069
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION FOR CREDIT LOSSES
20,960
14,586
56,075
44,497
OTHER INCOME
Service charges and fees
1,660
1,517
4,687
4,364
Income from fiduciary activities
254
256
805
719
Gains on sales of loans, net
130
103
242
145
Gains on sales of foreclosed real estate owned
-
-
-
32
Earnings and proceeds on life insurance policies
268
261
820
781
Other
193
158
551
467
Total other income
2,505
2,295
7,105
6,508
OTHER EXPENSES
Salaries and employee benefits
6,696
6,239
19,773
18,328
Occupancy, furniture and equipment
1,361
1,269
4,088
3,758
Data processing and related operations
1,087
1,162
3,361
3,208
Taxes, other than income
192
179
577
452
Professional fees
968
576
2,250
1,669
FDIC Insurance assessment
368
339
1,129
1,009
Foreclosed real estate
1
9
143
45
Amortization of intangibles
12
16
42
54
Other
2,249
2,242
6,166
6,683
Total other expenses
12,934
12,031
37,529
35,206
INCOME BEFORE TAX EXPENSE
10,531
4,850
25,651
15,799
INCOME TAX EXPENSE
2,197
1,006
5,338
3,308
NET INCOME
$
8,334
$
3,844
$
20,313
$
12,491
Basic earnings per share
$
0.89
$
0.48
$
2.22
$
1.55
Diluted earnings per share
$
0.89
$
0.48
$
2.22
$
1.55
NORWOOD FINANCIAL CORP
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)
For the Quarter Ended
September 30, 2025
June 30, 2025
September 30, 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
$
12,485
$
144
4.58
%
$
19,085
$
220
4.62
%
$
36,221
$
497
5.46
%
Securities available for sale:
Taxable
399,090
3,661
3.64
404,428
3,624
3.59
392,168
2,161
2.19
Tax-exempt (1)
44,074
312
2.81
44,158
312
2.83
67,563
461
2.71
Total securities available for sale (1)
443,164
3,973
3.56
448,586
3,936
3.52
459,731
2,622
2.27
Loans receivable (1) (4) (5)
1,802,046
28,267
6.22
1,783,626
27,249
6.13
1,651,921
25,575
6.16
Total interest-earning assets
2,257,695
32,384
5.69
2,251,297
31,405
5.60
2,147,873
28,694
5.31
Non-interest earning assets:
Cash and due from banks
31,050
30,323
