Norwood Financial Corp. · NASDAQ:NWFL
Norwood Financial — Q2 2026 Earnings Presentation
33 slides from Norwood Financial's earnings presentation, Jul 27, 2026
Slide 1: Q2 2026 Investor Presentation
Q2 2026 Investor Presentation Community Bank Making Every Day Better JULY 27, 2026 NASDAQ GLOBAL: NWFL
Slide 2: Forward-looking statements and additional information
Forward-looking statements and additional information This presentation contains forward-looking statements within the meaning of the federal securities laws that are made by Norwood Financial Corp (“Norwood”). All statements other than statements of historical fact are statements that could be deem
Slide 3: Key messages
Key messages 1 Reinforcing strengths and growth trajectory of a regional bank with a rich history of serving communities since 1871 2 Creating a high-performance culture that consistently delivers improving results and increasing returns 3 Executing a disciplined strategy to achieve 6%+ growth throu
Slide 4: Growing and fortifying the Norwood franchise
Growing and fortifying the Norwood franchise Adding branch locations to From a strong foundation, we continue to GROW our geographic footprint FORTIFY our financial position Cooperstown Oneonta NWFL 1871 310 Honesdale, PA 13 NASDAQ Founded Employees Headquarters Countries Honesdale Scranton Milford
Slide 5: Driving consistent execution across the organization to profitably grow and create shareholder value
Driving consistent execution across the organization to profitably grow and create shareholder value Positioning the Bank for our next era of growth Structurally improved our franchise Strategically accelerating our growth trajectory Repositioned our portfolio Aligning with regions and markets that
Slide 6: Executing a disciplined growth strategy to achieve financial targets
Executing a disciplined growth strategy to achieve financial targets Leveraging our strengths to create value Organic growth Strategic M&A Strong execution Value creation Serving markets and Build on successful Maintain diversified Generate 6%+ asset growth regions that are growing track record port
Slide 7: Disciplined, opportunistic growth strategy
Disciplined, opportunistic growth strategy A history of organic GROWTH and successful ACQUISITIONS Acquired Branches NY ~12% $0.5 CAGR PA $0.5 $2.9 $2.3 $2.4 $2.1 $2.2 $2.0 $0.4 $1.4 $0.2 $1.1 $1.2 $1.2 $0.7 $0.7 $0.7 $0.8 $0.7 $0.5 $0.5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20
Slide 8: Clear focus on regions with healthy small businesses environment
Clear focus on regions with healthy small businesses environment Community bank targeting opportunity-rich regions Small cities in rural and suburban settings Growing metro areas that have high credit quality NY Finger Lakes, NY Northeast PA Central PA Southern Tier NY Finger Lakes NY Southern Tier
Slide 9: Our distinctives give us competitive advantages
Our distinctives give us competitive advantages We have COMPETITIVE DIFFERENTIATORS that position us to win in our markets Strong local ties Granular loan and Attractive financial provide consistent deposit portfolio tied profile enhanced by and sound growth to our community recent repositioning opp
Slide 10: Management team building on legacy to create shareholder value
Management team building on legacy to create shareholder value James O. Janak John Vincent G. John F. Donnelly Amin McCaffery O’Bell Carmody President and Executive Vice Executive Vice Executive Vice Executive Vice Chief Executive President and President and President and President and Officer Chief
Slide 11: Executing a clear strategy to accelerate asset growth
Executing a clear strategy to accelerate asset growth Focus on small business lending, granular relationships, and diverse industry exposure +9% 1 Organic growth as we serve and CAGR +9% win with the small businesses in 3,50 0 CAGR our communities +9% 2,908 3,00 0 CAGR 2,514 2 Disciplined underwriti
Slide 12: Upgrading the customer experience to support growth initiatives
Upgrading the customer experience to support growth initiatives Growing deposits as we enable customer engagement Modernizing our branches to provide the communities we serve with innovative banking technologies and tools • Forty Fort grand opening and Presence Bank acquisition added five new branch
Slide 13: Growing noninterest income to enhance earnings quality
Growing noninterest income to enhance earnings quality Provides diverse, stable income stream Growing noninterest income more Noninterest income ($K) Delivering Results: Improving quickly than interest income 10,257 Debit Card Utilization +5% • Improve debit card utilization Deposit growth provides
Slide 14: Capital allocation framework to extend shareholder value creation
Capital allocation framework to extend shareholder value creation Investing in growth Returning cash to shareholders Funding organic Expanding through Supporting and Repurchasing shares growth strategic M&A growing the dividend opportunistically Above well-capitalized Geographic adjacent 34 years of
Slide 15: Building on history of generating total shareholder return
Building on history of generating total shareholder return Total Shareholder Return Proactively repositioned investment as of 6/30/2026 portfolio to perform well in current and 53.7% future interest rate environment Strong track record of growing assets 41.9% organically and through strategic M&A 30
Slide 16: Presence Bank as an example of our successful M&A track record
M&A CASE STUDY Presence Bank as an example of our successful M&A track record ANNOUNCED Jul 7, 2025 Strategic fit COMPLETED • Shared values, culture, and commitment to high quality customer service Jan 5, 2026 • Geographic-adjacent expansion into growing metro areas Presence Bank: a • Well run bank
Slide 17: Presence Bank merger update
Presence Bank merger update OVERVIEW of financials HIGHLIGHTS Successful acquisition of Presence Bank, with transaction Expected at Q1 2026 updated Metric closing January 5, 2026 announcement expectations Core systems conversion completed April 2026 Tangible Book Value (TBV) 4.2% 2.24% TBV per share
Slide 18: Leveraging our distinctives to create shareholder value
SUMMARY Leveraging our distinctives to create shareholder value 1 2 3 4 Reinforcing strengths Creating a high- Executing a disciplined Combining improved and growth trajectory performance culture strategy to achieve returns and disciplined of a regional bank with a that consistently 6%+ growth throu
Slide 19: Appendix
APPENDIX Q2 2026 INVESTOR PRESENTATION 19
Slide 20: Quarterly Results
QUARTERLY RESULTS Q2 2026 INVESTOR PRESENTATION 20
Slide 21: Q2 2026 summary
Q2 2026 summary Selected financial highlights (all comps Y/Y) Key messages Achieved strong second-quarter performance, with $26.8M 3.27% Net Interest Income +41% Net Interest Spread (fte) 1 +52 bps 1 record net interest income and record net income, extending the momentum we are building towards a b
Slide 22: Making progress on our 2026 strategic priorities
Making progress on our 2026 strategic priorities Focused on actions that will create value and build momentum • Completed key integration activity, including core system conversion and brand convergence Successfully complete • Ongoing dialogue to share best practices as we continue to standardize on
Slide 23: Improving financial performance and positioning for continued growth
Improving financial performance and positioning for continued growth Adjusted earnings per share1 EPS improved on record net income due to record net $0.86 interest income and growth in other income, partially $0.67 $0.72 offset by higher expenses due to the acquisition Q2 2025 Q1 2026 Q2 2026 TBV p
Slide 24: Loan portfolio overview
Loan portfolio overview Small business lending, granular relationships and limited industry concentration Loan portfolio by category CRE loans by industry C&I 1-4 Family Rental 1-4 Family 13% $98K Average Loan Size 12% 14% Investor Const & Land Real Estate $325K Average Commercial Loan Size Agricult
Slide 25: Strong historical credit quality
Strong historical credit quality Credit quality ratios 2022 2023 2024 2025 Q2 2026 Non-performing Loans / 0.08% 0.48% 0.46% 0.34% 1.23% Loans Net Charge Offs / Loans 0.02% 0.39% 0.10% 0.03% 0.24% ACL / Loans 1.15% 1.18% 1.16% 1.07% 1.13% Reserves / NPAs 1,165% 246% 252% 280% 90% NORWOOD FINANCIAL CO
Slide 26: Deposit portfolio overview
Deposit portfolio overview Attractive retail franchise bolstered by commercial and municipal relationships Deposit portfolio by category Historical funding costs 2.49% 2.46% 2.39% 2.30% NIB Demand 2.21% 2.21% 2.21% 2.11% 20% 2.32% 2.30% 2.26% 2.17% 2.11% 2.14% 2.12% 2.06% Time Deposts 42% Total 2024
Slide 27: Strength. Security. Stability.
Strength. Security. Stability. Customers Employees Key tenets for SUCCESS Community Shareholders UNIFIED BRAND: Consolidated Wayne Bank, the Bank of Cooperstown, Bank of the Finger Lakes, and Presence Bank under single Wayne Bank brand 150+ years in business Committed to the same community banking m
Slide 28: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Q2 2026 INVESTOR PRESENTATION 28
Slide 29: Non-GAAP financial measures
Non-GAAP financial measures Net Interest Income FTE and Average Tangible Equity NORWOOD FINANCIAL CORP Reconciliation of Non-GAAP Results (dollars in thousands, except per share data) Net Interest Income FTE (dollars in thousands) Three months ended Six months ended June 30 June 30 2026 2025 2026 20
Slide 30: Non-GAAP financial measures
Non-GAAP financial measures Pre Provision Net Revenue NORWOOD FINANCIAL CORP Reconciliation of Non-GAAP Results (dollars in thousands, except per share data) Pre Provision Net Revenue (Dollars in thousands) Six Months Three Months Three Months Six Months Three Months Ended Ended Ended Ended Ended Ju
Slide 31: Non-GAAP financial measures
Non-GAAP financial measures Adjusted Return on Average Assets NORWOOD FINANCIAL CORP Reconciliation of Non-GAAP Results (unaudited) (dollars in thousands, except per share data) Adjusted Return on Average Assets (Dollars in thousands) Six Months Three Months Three Months Six Months Three Months Ende
Slide 32: Non-GAAP financial measures
Non-GAAP financial measures Adjusted Return on Average Tangible Shareholders’ Equity and Adjusted Earnings Per Share Adjusted Return on Average Tangible Shareholders' Equity (Dollars in thousands) Six Months Three Months Three Months Six Months Three Months Ended Ended Ended Ended Ended June 30, Jun
Slide 33: Thank you
Thank you