Norwood Financial (NWFL) investor relations material

Executive summary

• Achieved record net interest income in Q1 2026, with strong profitability and asset growth driven by the Presence Bank acquisition and successful integration activities.

• Integration of Presence Bank progressing as planned, expanding geographic reach, strengthening the team, and completing core system conversion in April 2026.

• Adjusted net income and EPS increased 35% and 14% respectively, with higher returns on average assets and tangible equity year-over-year.

• Strategic priorities include integration, operational efficiency via AI, talent development, and shareholder value creation.

• Reported results were impacted by merger-related and restructuring expenses.

Financial highlights

• Net interest income rose 38% year-over-year to $24.6 million, with margin expanding by 38 basis points to 3.68%.

• Adjusted pre-provision net revenue increased 41% year-over-year to $11.4 million.

• Loan portfolio grew $46 million (8.4% annualized) and deposits increased $70 million (11.6% annualized) since January 5.

• Total assets reached $2.9 billion, loans receivable $2.239 billion, and deposits $2.507 billion as of March 31, 2026.

• Quarterly expenses rose as a percentage of average assets, mainly due to technology investments and merger costs.

Outlook and guidance

• Margin expected to expand by 3–5 basis points over the next quarters, though at a slower pace than Q1.

• Management remains focused on disciplined execution, expense management, and long-term value creation.

• Fee income anticipated to grow, especially in brokerage, trust, mortgage, and treasury management in the second half.

• Deposit costs expected to remain stable or decline slightly, with limited competitive pressure in core markets.

• Forward-looking statements highlight risks from interest rates, credit quality, and economic conditions.