Norwood Financial (NWFL) investor relations material

Strategic direction and growth trajectory

• Reinforcing a legacy of community banking since 1871, focusing on high-performance culture and disciplined capital allocation to drive shareholder value.

• Targeting 6%+ annual asset growth through market outperformance and strategic M&A, with a goal to surpass $5B in assets.

• Expanding geographic footprint via branch additions and acquisitions, notably the Presence Bank acquisition in 2026.

• Aligning with regions that offer durable growth fundamentals, especially small business-rich rural and metro areas in PA and NY.

• Building a diversified loan and deposit portfolio with disciplined underwriting and robust financial management.

Financial performance and shareholder returns

• Achieved record Q2 2026 net interest income of $26.8M (+41% YoY) and adjusted net income of $9.4M (+48% YoY).

• Adjusted diluted EPS rose to $0.86 (+25% YoY), with adjusted return on tangible equity at 15.11%.

• Maintained strong capital ratios: total capital 13.06%, Tier 1 and CET1 at 12.37%.

• 34 consecutive years of increasing dividends, with a current yield of 4.1%.

• Five-year total shareholder return of 53.7%, outperforming the KBW Nasdaq Regional Banking Index.

Operational execution and integration

• Successfully integrated Presence Bank, completing core system conversion and brand convergence in early 2026.

• Presence Bank acquisition resulted in lower-than-expected TBV dilution (2.24% vs. 4.2% estimated) and transaction expenses 14% below projections.

• Expanded branch network and modernized customer experience with digital banking and new technologies.

• Enhanced noninterest income, targeting an increase from 12% to 20% of total revenue within 3-5 years.

• Continued focus on small business lending, maintaining loans-to-deposits near 90% and balanced asset growth.