Exhibit 991

FOR IMMEDIATE RELEASE

Norwood Financial Corp announces Second Quarter Financial Results

Quarterly Highlights:

Record net income of $9.3 million.

Record net interest income of $26.8 million.

Diluted earnings per share of $0.86.

Total assets of $2.908 billion.

Tangible book value per share increased to $22.96, surpassing the pre-acquisition value of $22.90.

Successfully completed Presence Bancshares integration, including core system conversion and brand convergence.

Honesdale, Pennsylvania – July 18, 2026 - Norwood Financial Corp (the “Company”) (Nasdaq Global Market-NWFL), the holding company of Wayne Bank, announced results for the second quarter and six months ended June 30, 2026.

Jim Donnelly, President and Chief Executive Officer, stated, “We are pleased to announce strong second quarter results, highlighted by record net interest income, improved profitability, and continued progress following the integration of Presence Bancshares. Net interest margin expanded on both a year-over-year and linked-quarter basis, reflecting disciplined balance sheet management and the benefit of our larger franchise. We remain focused on credit quality, expense management, and long-term value creation for our shareholders as our teams continue to execute.”

(dollars in thousands, except per share data)	Year-Over Year			Linked Quarter		Year-to-Date
	3 Months Ended			3 Months Ended		6 Months Ended
	Jun-26	Jun-25	Change	Mar-26	Change	Jun-26	Jun-25	Change
Net interest income	$26,839	$19,065	$7,774	$24,554	$2,285	$51,393	$36,923	$14,470
Net interest spread (fte) 1	3.27%	2.75%	52 bps	3.04%	23 bps	3.16%	2.68%	48 bps
Net interest margin (fte) 1	3.90%	3.43%	47 bps	3.68%	22 bps	3.79%	3.37%	42 bps
Pre Provision Net Revenue (PPNR) 1	$13,573	$8,782	$4,791	$6,279	$7,294	$19,852	$16,927	$2,925
Net income	$9,328	$6,205	$3,123	$3,730	$5,598	$13,058	$11,978	$1,080
Diluted earnings per share	$0.86	$0.67	$0.19	$0.35	$0.51	$1.21	$1.30	$(0.09)
Return on average assets	1.28%	1.06%	22 bps	0.53%	75 bps	0.91%	1.03%	(12 bps)
Return on tangible equity	15.04%	12.83%	221 bps	6.04%	900 bps	10.55%	12.62%	(207 bps)

Excluding merger-related expenses and 2026 BOLI Restructuring Fees (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		6 Months Ended
	Jun-26	Jun-25	Change	Mar-26	Change	Jun-26	Jun-25	Change
Pre Provision Net Revenue (PPNR)	$13,626	$8,932	$4,694	$11,445	$2,181	$25,071	$8,932	$16,139
Net income	$9,370	$6,324	$3,046	$7,811	$1,559	$17,181	$12,097	$5,085
Diluted earnings per share	$0.86	$0.69	$0.17	$0.72	$0.14	$1.59	$1.31	$0.28
Return on average assets	1.29%	1.08%	21 bps	1.10%	19bps	1.20%	1.04%	16bps
Return on average tangible equity	15.11%	13.08%	203 bps	12.65%	246 bps	13.88%	12.75%	126 bps

Discussion of financial results for the three months ended June 30, 2026 (all comparisons are to second quarter 2025, unless otherwise noted):

Net income was $9.3 million, an increase of $3.1 million from $6.2 million. Diluted earnings per share were $0.86 compared to $0.67.

Net interest income was $26.8 million, an increase of $7.8 million from $19.1 million. On a linked-quarter basis, net interest income increased $2.3 million from $24.6 million.

Net interest margin (fully taxable equivalent) was 3.90% compared to 3.43%. On a linked-quarter basis, NIM increased 22 basis points from 3.68%.

Pre-provision net revenue (PPNR) was $13.6 million, compared to $8.8 million in the prior-year quarter and $6.3 million in the linked quarter.

Total assets were $2.908 billion, compared to $2.365 billion, an increase of 22.9%.

Loans receivable were $2.263 billion compared to $1.791 billion, an increase of 26.4%.

Total deposits were $2.514 billion compared to $1.998 billion, an increase of 25.8%.

Tangible book value per share was $22.96 compared to $21.17 at June 30, 2025, and increased $0.54 on a linked-quarter basis from $22.43.

Allowance for credit losses to total loans was 1.13%. Nonperforming loans to total loans were 1.23% and nonperforming assets to total assets were 0.98%.

Credit Quality

During the second quarter of 2026, the Company recorded net charge-offs of approximately $1.4 million, including a $729 thousand charge-off related to a previously disclosed borrower relationship that filed for Chapter 11 bankruptcy protection during June 2026. The relationship consists of five loans to four borrower entities with aggregate exposure of approximately $22 million to the Bank and is primarily secured by commercial real estate. The Company continues to evaluate the potential loss exposure associated with the relationship, monitor the bankruptcy proceedings, and assess underlying collateral values. Management believes the allowance for credit losses remains appropriate based on information currently available.

About Norwood Financial Corp

Norwood Financial Corp, through its subsidiary, Wayne Bank operates 33 Community Offices serving Wayne, Pike, Monroe, Lackawanna, Luzerne, Chester, Cumberland, and Lancaster Counties in Pennsylvania, along with Delaware, Sullivan, Otsego, Ontario, and Yates Counties in New York. The Company has total assets of $2.9 billion. The Company’s stock is traded on the Nasdaq Global Market under the symbol “NWFL”. For more information, visit wayne.bank.

Forward-Looking Statements

In addition to historical information, this earnings release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which describes the future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,” “seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “contemplate,” “continue,” “target” and words of similar meaning. Forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, you should not place undue reliance on such statements. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this report. 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 Return on Average Assets, Return on Average Tangible Shareholders’ Equity, Basic Earnings per Share, Diluted Earnings per Share, Tangible Book Value and Pre Provision Net Revenue. 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.

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)
		June 30
		2026		2025
ASSETS
Cash and due from banks	$	30,902	$	32,052
Interest-bearing deposits with banks		29,387		20,993
Fed funds sold		0		0
Cash and cash equivalents		60,289		53,045

Securities available for sale		438,967		402,460
Loans receivable		2,262,813		1,790,574
Less: Allowance for credit losses		25,632		20,908
Net loans receivable		2,237,181		1,769,666
Regulatory stock, at cost		6,399		7,538
Bank premises and equipment, net		25,262		21,608
Bank owned life insurance		55,404		46,099
Foreclosed real estate owned		771		-
Accrued interest receivable		10,568		8,642
Deferred tax assets, net		19,979		17,693
Goodwill		36,375		29,266
Other intangible assets		3,153		121
Other assets		13,566		9,212
TOTAL ASSETS	$	2,907,914	$	2,365,350

LIABILITIES
Deposits:
Non-interest bearing demand	$	500,383	$	406,358
Interest-bearing		2,013,914		1,591,476
Total deposits		2,514,297		1,997,834
Short-term borrowings		-		26,500
Other borrowings		65,513		85,350
Accrued interest payable		8,668		10,975
Other liabilities		29,796		19,266
TOTAL LIABILITIES		2,618,274		2,139,925

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: 2026: 11,182,591 shares, 2025: 9,490,505 shares		1,118		949
Surplus		174,337		126,990
Retained earnings		146,685		131,199
Treasury stock, at cost: 2026: 290,841 shares, 2025: 229,983 shares		(7,957)		(6,208)
Accumulated other comprehensive loss		(24,543)		(27,505)
TOTAL STOCKHOLDERS' EQUITY		289,640		225,425

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$	2,907,914	$	2,365,350



Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
	Three Months Ended June 30,				Six Months Ended June 30,
		2026		2025		2026		2025
INTEREST INCOME
Loans receivable, including fees	$	35,585	$	27,115	$	69,458	$	53,103
Securities		4,495		3,871		8,605		7,742
Other		377		220		777		446
Total Interest income		40,457		31,206		78,840		61,291

INTEREST EXPENSE
Deposits		12,899		10,869		25,686		21,617
Short-term borrowings		32		211		92		669
Other borrowings		687		1,061		1,669		2,082
Total Interest expense		13,618		12,141		27,447		24,368
NET INTEREST INCOME		26,839		19,065		51,393		36,923
PROVISION FOR CREDIT LOSSES		1,944		950		3,403		1,807
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		24,895		18,115		47,990		35,116


OTHER INCOME
Service charges and fees		1,666		1,514		3,421		3,027
Income from fiduciary activities		248		226		486		551
Gains on sales of loans, net		54		65		131		112
Earnings and proceeds on life insurance policies		326		266		640		552
Other		232		177		564		357
Total other income		2,526		2,248		5,242		4,599

OTHER EXPENSES
Salaries and employee benefits		8,674		6,605		17,223		13,077
Occupancy, furniture and equipment		1,569		1,349		3,294		2,727
Data processing and related operations		1,576		1,189		3,010		2,274
Taxes, other than income		174		192		376		385
Professional fees		596		473		1,422		1,132
FDIC Insurance assessment		428		355		935		761
Foreclosed real estate		31		137		67		141
Amortization of intangibles		165		15		331		30
Merger		53		150		4,994		150
Other		2,526		2,066		5,131		3,918
Total other expenses		15,792		12,531		36,783		24,595

INCOME BEFORE TAX EXPENSE		11,629		7,832		16,449		15,120
INCOME TAX EXPENSE		2,301		1,627		3,391		3,142
NET INCOME	$	9,328	$	6,205	$	13,058	$	11,978

Basic earnings per share	$	0.86	$	0.67	$	1.21	$	1.30

Diluted earnings per share	$	0.86	$	0.67	$	1.21	$	1.30


NORWOOD FINANCIAL CORP
NET INTEREST MARGIN ANALYSIS (unaudited)
(dollars in thousands)
	For the Quarter Ended
	June 30, 2026							March 31, 2026							June 30, 2025
	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:
Fed funds sold	$	1,511		14		3.72	%	$	933		11		4.78	%	$						%
Interest-bearing deposits with banks		43,467	$	364		3.36			72,896	$	389		2.16			19,085	$	220		4.62
Securities available for sale:
Taxable		435,004		4,246		3.92			415,567		3,859		3.77			404,428		3,624		3.59
Tax-exempt (1)		44,269		315		2.85			44,634		318		2.89			44,158		312		2.83
Total securities available for sale (1)		479,273		4,561		3.82			460,201		4,177		3.68			448,586		3,936		3.52
Loans receivable (1) (4) (5)		2,253,991		35,700		6.35			2,195,033		33,999		6.28			1,783,626		27,249		6.13
Total interest-earning assets		2,778,242		40,639		5.87			2,729,063		38,576		5.73			2,251,297		31,405		5.60
Non-interest earning assets:
Cash and due from banks		30,147							30,663							30,323
Allowance for credit losses		(24,556)							(23,391)							(20,733)
Other assets		129,320							131,739							94,922
Total non-interest earning assets		134,911							139,011							104,512
Total Assets	$	2,913,153						$	2,868,074						$	2,355,809
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	727,580	$	3,460		1.91		$	723,966	$	3,462		1.94		$	573,904	$	2,887		2.02
Savings		231,852		200		0.35			218,829		137		0.25			204,318		119		0.23
Time		1,071,210		9,239		3.46			1,040,656		9,188		3.58			821,725		7,863		3.84
Total interest-bearing deposits		2,030,642		12,899		2.55			1,983,451		12,787		2.61			1,599,947		10,869		2.72
Short-term borrowings		3,233		32		3.97			6,358		60		3.83			17,757		211		4.77
Other borrowings		67,802		687		4.06			95,152		982		4.19			95,792		1,061		4.44
Total interest-bearing liabilities		2,101,677		13,618		2.60			2,084,961		13,829		2.69			1,713,496		12,141		2.84
Non-interest bearing liabilities:
Demand deposits		486,557							458,126							389,323
Other liabilities		36,585							35,188							29,639
Total non-interest bearing liabilities		523,142							493,314							418,962
Stockholders' equity		288,334							289,799							223,351
Total Liabilities and Stockholders' Equity	$	2,913,153						$	2,868,074						$	2,355,809
Net interest income/spread (tax equivalent basis)				27,021		3.27	%				24,747		3.04	%				19,264		2.75	%
Tax-equivalent basis adjustment				(182)							(193)							(199)
Net interest income			$	26,839						$	24,554						$	19,065
Net interest margin (tax equivalent basis)						3.90	%						3.68	%						3.43	%


(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 (unaudited)
(dollars in thousands)
	Year to Date
	June 30, 2026							#
	Average				Average			Average				Average
	Balance		Interest		Rate			Balance		Interest		Rate
	(2)		(1)		(3)			(2)		(1)		(3)
Assets
Interest-earning assets:
Fed funds sold	$	1,226		25		4.11	%	$						%
Interest-bearing deposits with banks		58,074	$	753		2.61			19,939	$	446		4.51
Securities available for sale:
Taxable		425,350		8,104		3.84			406,416		7,247		3.60
Tax-exempt (1)		44,451		633		2.87			44,199		626		2.86
Total securities available for sale (1)		469,801		8,737		3.75			450,615		7,873		3.52
Loans receivable (1) (4) (5)		2,224,699		69,700		6.32			1,763,710		53,369		6.10
Total interest-earning assets		2,75,800		79,215		5.80			2,234,264		61,688		5.57
Non-interest earning assets:
Cash and due from banks		30,409							29,519
Allowance for credit losses		(23,976)							(20,445)
Other assets		130,526							94,031
Total non-interest earning assets		136,959							103,105
Total Assets	$	2890,759						$	2,337,369
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	725,787	$	6,922		1.92		$	560,469	$	5,688		2.05
Savings		225,380		337		0.30			208,090		261		0.25
Time		1,056,053		18,427		3.52			807,841		15,668		3.91
Total interest-bearing deposits		2,00,220		25,686		2.58			1,576,400		21,617		2.77
Short-term borrowings		4,782		92		3.88			30,954		669		4.36
Other borrowings		81,395		1,669		4.13			94,676		2,082		4.43
Total interest-bearing liabilities		2,093,397		27,447		2.64			1,702,030		24,368		2.89
Non-interest bearing liabilities:
Demand deposits		472,412							384,958
Other liabilities		35,886							29,594
Total non-interest bearing liabilities		508,297							414,552
Stockholders' equity		289,064							220,787
Total Liabilities and Stockholders' Equity	$	2,890,759						$	2,337,369
Net interest income/spread (tax equivalent basis)				51,768		3.16	%				37,320		2.68	%
Tax-equivalent basis adjustment				(375)							(397)
Net interest income			$	51,393						$	36,923
Net interest margin (tax equivalent basis)						3.79	%						3.37	%


(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 June 30		2026		2025

Net interest income	$	26,839	$	19,065
Net income		9,328		6,205

Net interest spread (fully taxable equivalent)		3.27%		2.75%
Net interest margin (fully taxable equivalent)		3.90%		3.43%
Return on average assets		1.28%		1.06%
Return on average equity		12.98%		11.14%
Return on average tangible equity		15.04%		12.83%
Basic earnings per share	$	0.86	$	0.67
Diluted earnings per share	$	0.86	$	0.67

For the Six Months Ended June 30		2026		2025

Net interest income		51,393		36,923
Net income		13,058		11,978

Net interest spread (fully taxable equivalent)		3.16%		2.68%
Net interest margin (fully taxable equivalent)		3.79%		3.37%
Return on average assets		0.91%		1.03%
Return on average equity		9.11%		10.94%
Return on average tangible equity		10.55%		12.62%
Basic earnings per share		1.21		1.30
Diluted earnings per share		1.21		1.30



As of June 30		2026		2025

Total assets	$	2,907,914	$	2,365,350
Total loans receivable		2,262,813		1,790,574
Allowance for credit losses		25,632		20,908
Total deposits		2514297		1,997,834
Stockholders' equity		289,640		225,425
Trust assets under management		242,164		207,402

Book value per share	$	26.59	$	24.34
Tangible book value per share	$	22.96	$	21.17
Equity to total assets		9.96%		9.53%
Allowance to total loans receivable		1.13%		1.17%
Nonperforming loans to total loans		1.21%		0.45%
Nonperforming assets to total assets		0.97%		0.34%


NORWOOD FINANCIAL CORP
Consolidated Balance Sheets (unaudited)
(dollars in thousands)
		June 30		March 31		December 31		September 30		June 30
		2026		2026		2025		2025		2025
ASSETS
Cash and due from banks	$	30,902	$	25,480	$	32,118	$	50,348	$	32,052
Interest-bearing deposits with banks		29,387		75,258		12,318		24,382		20,993
Fed funds sold		0		1,835
Cash and cash equivalents		60,289		102,573		44,436		74,730		53,045

Securities available for sale		438,967		431,204		408,782		403,989		402,460
Loans receivable		2,262,813		2,238,657		1,853,422		1,814,682		1,790,574
Less: Allowance for credit losses		25,632		24,350		19,882		19,911		20,908
Net loans receivable		2,237,181		2,214,307		1,833,540		1,794,771		1,769,666
Regulatory stock, at cost		6,399		7,161		6,623		6,163		7,538
Bank owned life insurance		55,404		55,078		46,089		45,821		46,099
Bank premises and equipment, net		25,262		25,299		22,971		22,292		21,608
Foreclosed real estate owned		771		771		771		-		-
Goodwill and other intangibles		39,528		39,693		29,364		29,375		29,387
Other assets		44,113		41,168		32,266		34,810		35,547
TOTAL ASSETS	$	2,907,914	$	2,917,254	$	2,424,842	$	2,411,951	$	2,365,350

LIABILITIES
Deposits:
Non-interest bearing demand	$	500,383	$	470,706	$	419,597	$	424,027	$	406,358
Interest-bearing deposits		2,013,914		2,035,992		1,659,048		1,649,941		1,591,476
Total deposits		2,514,297		2,506,698		2,078,645		2,073,968		1,997,834
Borrowings		65,513		88,268		74,133		72,071		111,850
Other liabilities		38,464		38,350		29,907		31,007		30,241
TOTAL LIABILITIES		2,618,274		2,633,316		2,182,685		2,177,046		2,139,925

STOCKHOLDERS' EQUITY		289,640		283,938		242,157		234,905		225,425

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$	2,907,914	$	2,917,254	$	2,424,842	$	2,411,951	$	2,365,350



NORWOOD FINANCIAL CORP
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)
		June 30		March 31		December 31		September 30		June 30
Three months ended		2026		2026		2025		2025		2025
INTEREST INCOME
Loans receivable, including fees	$	35,585	$	33,873	$	28,666	$	28,141	$	27,115
Securities		4,495		4,110		3,906		3,907		3,871
Other		377		400		474		144		220
Total interest income		40,457		38,383		33,046		32,192		31,206

INTEREST EXPENSE
Deposits		12,899		12,787		11,334		10,730		10,869
Borrowings		719		1,042		768		1,004		1,272
Total interest expense		13,618		13,829		12,102		11,734		12,141
NET INTEREST INCOME		26,839		24,554		20,944		20,458		19,065
PROVISION FOR (RELEASE OF) CREDIT LOSSES		1,944		1,459		468		(502)		950
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION
FOR CREDIT LOSSES		24,895		23,095		20,476		20,960		18,115

OTHER INCOME
Service charges and fees		1,666		1,755		1,734		1,660		1,514
Income from fiduciary activities		248		238		228		254		226
Net realized (losses) gains on sales of securities		-		-		-		-		-
Gains on sales of loans, net		54		76		83		130		65
Gains on sales of foreclosed real estate owned		-		-		-		-		-
Earnings and proceeds on life insurance policies		326		314		268		268		266
Other		232		332		198		193		177
Total other income		2,526		2,715		2,511		2,505		2,248

OTHER EXPENSES
Salaries and employee benefits		8,674		8,549		7,155		6,696		6,605
Occupancy, furniture and equipment, net		1,569		1,725		1,390		1,361		2,538
Foreclosed real estate		31		36		-		1		137
FDIC insurance assessment		428		507		423		368		355
Other		5,090		10,173		4,651		4,508		2,896
Total other expenses		15,792		20,990		13,619		12,934		12,531

INCOME BEFORE TAX (BENEFIT) EXPENSE		11,629		4,820		9,368		10,531		7,832
INCOME TAX (BENEFIT) EXPENSE		2,301		1,090		1,926		2,197		1,627
NET (LOSS) INCOME	$	9,328	$	3,730	$	7,442	$	8,334	$	6,205

Basic (loss) earnings per share	$	0.86	$	0.35	$	0.81	$	0.89	$	0.67

Diluted (loss) earnings per share	$	0.86	$	0.35	$	0.81	$	0.89	$	0.67

Book Value per share	$	26.59	$	26.07	$	26.06	$	25.36	$	24.34
Tangible Book Value per share		22.96		22.43		22.90		22.19		21.17

Return on average assets (annualized)		1.28%		0.53%		1.21%		1.40%		1.06%
Return on average equity (annualized)		12.98%		5.22%		12.30%		14.58%		11.14%
Return on average tangible equity (annualized)		15.04%		6.04%		14.01%		16.76%		12.83%

Net interest spread (fte)		3.27%		3.04%		2.93%		2.94%		2.75%
Net interest margin (fte)		3.90%		3.68%		3.60%		3.63%		3.43%

Allowance for credit losses to total loans		1.13%		1.09%		1.07%		1.10%		1.17%
Net charge-offs to average loans (annualized)		0.24%		0.09%		0.13%		0.13%		0.08%
Nonperforming loans to total loans		1.21%		0.46%		0.34%		0.36%		0.45%
Nonperforming assets to total assets		0.97%		0.38%		0.28%		0.31%		0.34%
Nonperforming loans to total assets		0.94%		0.35%		0.26%		0.27%		0.34%
Loan Loss Reserve/NPAs		91.13%		219.93%		279.62%		270.50%		258.43%



NORWOOD FINANCIAL CORP
Reconciliation of Non-GAAP Results (unaudited)
(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	2025

	Net Interest Income	$26,839	$19,065	$51,393	$36,923
	Taxable equivalent basis adjustment using 21% marginal tax rate	182	199	375	397
	Net interest income on a fully taxable equivalent basis	$27,021	$19,264	$51,768	$37,320

Average Tangible Equity
(dollars in thousands)
		Three months ended		Six months ended
		June 30		June 30
		2026	2025	2026	2025

	Average equity	$288,334	$223,351	$289,064	$220,787
	Average goodwill and other intangibles	(39,609)	(29,394)	(39,472)	(29,402)
	Average tangible equity	$248,725	$193,957	$249,592	$191,385


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
			June 30,		June 30,		March 31,		June 30,		June 30,
			2026		2026		2026		2025		2025
	Income before tax expense (GAAP)	$	16,449	$	11,629	$	4,820	$	15,120	$	7,832
	Provision for credit losses		3,403		1,944		1,459		1,807		950
	Pre provision net revenue (PPNR) (Non-GAAP)		19,852		13,573		6,279		16,927		8,782
	Merger-related expenses		4,994		53		4,941		150		150
	BOLI restructuring fee		225		0		225		0		0
	PPNR adjusted for one time expenses (Non-GAAP)		25,071		13,626		11,445		17,077		8,932


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
			Ended			Ended			Ended			Ended			Ended
			June 30,			June 30,			March 31,			June 30,			June 30,
			2026			2026			2026			2025			2025
	Net income	$	13,058		$	9,328		$	3,730		$	11,978		$	6,205
	Average assets		2,890,759			2,913,153			2,868,074			2,337,369			2,355,809
	Return on average assets (annualized)		0.91	%		1.28	%		0.53	%		1.03	%		1.06	%
	Net income		13,058			9,328			3,730			11,978			6,205
	Merger-related expenses		4,994			53			4,941			150			150
	Boli restructuring fee		225			0			225			0			0
	Tax effect at 21%		(1,096)			(11)			(1,085)			(32)			(32)
	Adjusted Net Income (Non-GAAP)		17,181			9,370			7,811			12,097			6,324
	Average assets		2,890,759			2,913,153			2,868,074			2,337,369			2,355,809
	Adjusted return on average assets (annualized)
	(Non-GAAP)		1.20	%		1.29	%		1.10	%		1.04	%		1.08	%




	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,			June 30,			March 31,			June 30,			June 30,
			2026			2026			2026			2025			2025
	Net income	$	13,058		$	9,328		$	3,730		$	11,978		$	6,205
	Average shareholders' equity		289,064			288,334			289,799			220,787			223,351
	Average intangible assets		(39,472)			(39,609)			(39,334)			(29,402)			(29,394)
	Average tangible shareholders' equity		249,592			248,725			250,465			191,385			193,957
	Return on average tangible shareholders' equity (annualized)		10.55	%		15.04	%		6.04	%		12.62	%		12.83	%
	Net income		13,058			9,328			3,730			11,978			6,205
	Merger-related expenses		4,994			53			4,941			150			150
	Boli restructuring fee		225			0			225			0			0
	Tax effect at 21%		(1,096)			(11)			(1,085)			(32)			(32)
	Adjusted Net Income (Non-GAAP)		17,181			9,370			7,811			12,097			6,324
	Average tangible shareholders' equity		249,592			248,725			250,465			191,385			193,957
	Adjusted return on average shareholders' equity (annualized)
	(Non-GAAP)		13.88	%		15.11	%		12.65	%		12.75	%		13.08	%




	Adjusted Earnings Per Share
	(Dollars in thousands)
			Six Months			Three Months			Three Months			Six Months			Three Months
			Ended			Ended			Ended			Ended			Ended
			June 30,			June 30,			March 31,			June 30,			June 30,
			2026			2026			2026			2025			2025
	GAAP-Based Earnings Per Share, Basic	$	1.21		$	0.86		$	0.35		$	1.30		$	0.67
	GAAP-Based Earnings Per Share, Diluted	$	1.21		$	0.86		$	0.35		$	1.30		$	0.67
	Net Income		13,058			9,328			3,730			11,978			6,205
	Merger-related expenses		4,994			53			4,941			150			150
	Boli restructuring fee		225			0			225			0			0
	Tax effect at 21%		(1,096)			(11)			(1,085)			(32)			(32)
	Adjusted Net Income (Non-GAAP)		17,181			9,370			7,811			12,097			6,324
	Adjusted Earnings per Share, Basic (Non-GAAP)	$	1.59		$	0.86		$	0.73		$	1.31		$	0.69
	Adjusted Earnings per Share, Diluted (Non-GAAP)	$	1.59		$	0.86		$	0.72		$	1.31		$	0.69