On October 27, 2026, Norwood Financial Corp (Nasdaq: NWFL), the holding company for Wayne Bank, announced financial results for the quarter ended September 30, 2026. The company reported record net income of $11.8 million for the three-month period, a $3.4 million increase compared to the same quarter in the prior year.
Key financial metrics for the quarter included:
- Net Interest Income: $28.0 million, up $7.6 million from the prior year and $1.2 million from the linked quarter.
- Net Interest Margin: 4.01%, an expansion of 38 basis points from the prior year and 11 basis points from the linked quarter.
- Diluted Earnings Per Share: $1.08, compared to $0.89 in the prior year.
- Total Assets: $2.95 billion, representing an 18.3% increase from $2.41 billion at the end of September 2025.
- Loans Receivable: $2.29 billion, an increase of 20.9% year-over-year.
- Total Deposits: $2.51 billion, an increase of 17.3% year-over-year.
The company also disclosed a credit event from the second quarter of 2026. During that period, a borrower relationship filed for Chapter 11 bankruptcy protection, resulting in a $729,000 charge-off. In the third quarter, a new entity purchased the underlying business and the associated loan, settling all past due interest and DIP financing. This resolution removed the loan from non-accrual status, lowering the provision for credit losses and contributing to the margin expansion.
As of September 30, 2026, the company reported an allowance for credit losses of 1.10% of total loans, with nonperforming loans at 0.73% of total loans and nonperforming assets at 0.59% of total assets.
