EX-99.1

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE

Norwood Financial Corp announces Second Quarter 2025 Results

Quarterly and Year-to-Date Highlights:

•

Fully diluted EPS of $0.67, a 29% increase over the same period in 2024

•

Return on assets rose 31 basis points to 1.06% from 2Q 2024.

•

Net interest margin increased 13 basis points vs. the prior quarter and 63 basis points over the prior year.

•

Loans grew at a 4.4% and 8.2% annualized rate during the second quarter and year-to-date, respectively.

•

Deposits grew year-to-date at an annualized rate of 15% while deposit costs fell 20 basis points since the 4^th quarter of 2024.

•

Capital continues to improve on increased earnings and lower accumulated other comprehensive income (AOCI) adjustment.

Honesdale, Pennsylvania – July 22, 2025 - Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced results for the three months and six months ended June 30, 2025.

Jim Donnelly, President and Chief Executive Officer, stated, “Our company’s performance continues to strengthen, due to increased yields coming out of our 2024 4^th quarter repositioning, as well as improved results in all our business lines. In the first half of 2025 we achieved robust growth in both loans and deposits while improving yields as well. We enter the second half of 2025 on solid footing and with good momentum”

Mr. Donnelly continued, “I am proud of the performance from the entire Norwood team as they remain focused on delivering the products and services that help our customers achieve their goals. During the second quarter we launched our ‘Every Day Better’ campaign to high acclaim from customers, employees, and community members. This full rebrand enabled us to articulate our values and mission, stand out from competitors, and unite and energize our company culture. Building on this great combination of a high-performing team and strong brand, I am confident that we are on our way to creating a bright future for us, our customers, and our shareholders.”

Selected Financial Highlights (unaudited)


	Year-Over Year								Linked Quarter					Year-to-Date
	3 Months Ended								3 Months Ended					6 Months Ended
(dollars in thousands, except per share data)	Jun-25			Jun-24			Change		Mar-25			Change		Jun-25			Jun-24			Change
Net interest income	$	19,065		$	14,925		$	4,140	$	17,857		$	1,208	$	36,923		$	29,635		$	7,288
Net interest spread (fte)		2.75	%		2.06	%		69 bps		2.61	%		14 bps		2.68	%		2.07	%		30 bps
Net interest margin (fte)		3.43	%		2.80	%		63 bps		3.30	%		13 bps		3.37	%		2.80	%		26 bps
Net income	$	6,205		$	4,213		$	1,992	$	5,773		$	432	$	11,978		$	8,646		$	3,332
Diluted earnings per share	$	0.67		$	0.52		$	0.15	$	0.63		$	0.04	$	1.30		$	1.07		$	0.23
Return on average assets		1.06	%		0.75	%		31 bps		1.01	%		5 bps		1.03	%		0.78	%		25 bps
Return on tangible equity		12.83	%		9.44	%		339 bps		12.40	%		43 bps		12.62	%		11.49	%		113 bps

Discussion of financial results for the three months ended June 30, 2025:

•

The Company had net income of $6.2 million for the three months ended June 30, 2025, an increase of $2.0 million over the same period last year.

•

Net interest income increased during the second quarter of 2025 compared to the second quarter of 2024 due to increases in asset yields while yields on liabilities decreased.

•

Correspondingly, the net interest margin in the second quarter of 2025 was 3.43% compared to 2.80% in the second quarter of 2024.

•

Non-interest income in the first 6 months of 2025 increased $386 thousand or 9.2% over the same period in 2024.

•

The efficiency ratio for the second quarter of 2025 was 58.7% compared to 66.7% in the second quarter of 2024.

•

As of June 30, 2025, total assets were $2.365 billion, compared to $2.235 billion at June 30, 2024, an increase of 5.82%.

•

Loans receivable were $1.791 billion at June 30, 2025, compared to $1.641 billion at June 30, 2024, an increase of 9.1% .

•

Total deposits were $1.997 billion at June 30, 2025, compared to $1.811 billion at June 30, 2024, an increase of 10.3%.

•

Tangible Common Equity was 8.39% as of June 30, 2025, versus 6.92% at June 30, 2024.

•

Tangible Book Value per share increased $1.32 from $19.85 at December 31, 2024, to $21.17 at June 30, 2025.

Norwood Financial Corp is the parent company of Wayne Bank, which operates from sixteen offices throughout Northeastern Pennsylvania and fourteen offices in Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. The Company’s stock trades on the Nasdaq Global Market under the symbol “NWFL”.

Non-GAAP Financial Measures (unaudited)

The following tables reconcile certain Non-GAAP financial measures references in this release:


	Three months ended						Six months ended
	June 30						June 30
(dollars in thousands)	2025			2024			2025			2024
Net Interest Income	$	19,065		$	14,925		$	36,923		$	29,635
Taxable equivalent basis adjustment using 21% marginal tax rate		199			199			397			394
Net interest income on a fully taxable equivalent basis	$	19,264		$	15,124		$	37,320		$	30,029


	Three months ended						Six months ended
	June 30						June 30
(dollars in thousands)	2025			2024			2025			2024
Average equity	$	223,351		$	179,494		$	220,787		$	180,791
Average goodwill and other intangibles		(29,394	)		(29,457	)		(29,402	)		(29,466	)
Average tangible equity	$	193,957		$	150,037		$	191,385		$	151,325

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words “believes”, “anticipates”, “contemplates”, “expects”, “bode”, “future performance”, “solid footing,” “good momentum,” “bright future” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. 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.

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
	2025			2024
ASSETS
Cash and due from banks	$	32,052		$	29,903
Interest-bearing deposits with banks		20,993			39,492

Cash and cash equivalents		53,045			69,395
Securities available for sale		402,460			397,578
Loans receivable		1,790,574			1,641,355
Less: Allowance for credit losses		20,908			17,806

Net loans receivable		1,769,666			1,623,549
Regulatory stock, at cost		7,538			6,443
Bank premises and equipment, net		21,608			18,265
Bank owned life insurance		46,099			46,121
Accrued interest receivable		8,642			8,329
Deferred tax assets, net		17,693			21,707
Goodwill		29,266			29,266
Other intangible assets		121			183
Other assets		9,212			14,480

TOTAL ASSETS	$	2,365,350		$	2,235,316

LIABILITIES
Deposits:
Non-interest bearing demand	$	406,358		$	391,849
Interest-bearing		1,591,476			1,419,323

Total deposits		1,997,834			1,811,172
Short-term borrowings		26,500			62,335
Other borrowings		85,350			148,087
Accrued interest payable		10,975			13,329
Other liabilities		19,266			18,206

TOTAL LIABILITIES		2,139,925			2,053,129
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: 2025: 9,490,505 shares, 2024: 8,311,851 shares		949			831
Surplus		126,990			98,082
Retained earnings		131,199			139,070
Treasury stock, at cost: 2025: 229,983 shares, 2024: 221,540 shares		(6,208	)		(5,977	)
Accumulated other comprehensive loss		(27,505	)		(49,819	)

TOTAL STOCKHOLDERS’ EQUITY		225,425			182,187

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,365,350		$	2,235,316

NORWOOD FINANCIAL CORP

Consolidated Statements of Income

(dollars in thousands, except per share data)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
INTEREST INCOME
Loans receivable, including fees	$	27,115	$	24,121	$	53,103	$	47,802
Securities		3,871		2,584		7,742		5,109
Other		220		966		446		1,697

Total Interest income		31,206		27,671		61,291		54,608
INTEREST EXPENSE
Deposits		10,869		10,687		21,617		20,796
Short-term borrowings		211		356		669		692
Other borrowings		1,061		1,703		2,082		3,485

Total Interest expense		12,141		12,746		24,368		24,973

NET INTEREST INCOME		19,065		14,925		36,923		29,635
PROVISION FOR (RELEASE OF) CREDIT LOSSES		950		347		1,807		(276	)

NET INTEREST INCOME AFTER PROVISION FOR (RELEASE
OF) CREDIT LOSSES		18,115		14,578		35,116		29,911
OTHER INCOME
Service charges and fees		1,514		1,504		3,027		2,847
Income from fiduciary activities		226		225		551		463
Gains on sales of loans, net		65		36		112		42
Earnings and proceeds on life insurance policies		266		253		552		520
Other		177		189		357		341

Total other income		2,248		2,207		4,599		4,213
OTHER EXPENSES
Salaries and employee benefits		6,605		5,954		13,077		12,090
Occupancy, furniture and equipment		1,349		1,229		2,727		2,489
Data processing and related operations		1,189		1,024		2,274		2,046
Taxes, other than income		192		179		385		272
Professional fees		623		508		1,282		1,092
FDIC Insurance assessment		355		309		761		670
Foreclosed real estate		137		15		141		36
Amortization of intangibles		15		19		30		38
Other		2,066		2,207		3,918		4,442

Total other expenses		12,531		11,444		24,595		23,175
INCOME BEFORE TAX EXPENSE		7,832		5,341		15,120		10,949
INCOME TAX EXPENSE		1,627		1,128		3,142		2,303

NET INCOME	$	6,205	$	4,213	$	11,978	$	8,646

Basic earnings per share	$	0.67	$	0.52	$	1.30	$	1.07

Diluted earnings per share	$	0.67	$	0.52	$	1.30	$	1.07

NORWOOD FINANCIAL CORP

NET INTEREST MARGIN ANALYSIS

(dollars in thousands)


	For the Quarter Ended
	June 30, 2025									March 31, 2025									June 30, 2024
	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:
Interest-bearing deposits with banks	$	19,085		$	220			4.62	%	$	20,802		$	226			4.41	%	$	69,173		$	967			5.62	%
Securities available for sale:
Taxable		404,428			3,624			3.59			408,427			3,623			3.60			401,014			2,206			2.21
Tax-exempt (1)		44,158			312			2.83			44,242			312			2.86			69,126			477			2.78

Total securities available for sale (1)		448,586			3,936			3.52			452,669			3,935			3.53			470,140			2,683			2.30
Loans receivable (1) (4) (5)		1,783,626			27,249			6.13			1,743,572			26,120			6.08			1,629,283			24,220			5.98

Total interest-earning assets		2,251,297			31,405			5.60			2,217,043			30,281			5.54			2,168,596			27,870			5.17
Non-interest earning assets:
Cash and due from banks		30,323									28,705									26,422
Allowance for credit losses		(20,733	)								(20,154	)								(18,023	)
Other assets		94,922									93,131									69,718

Total non-interest earning assets		104,512									101,682									78,117

Total Assets	$	2,355,809								$	2,318,725								$	2,246,713

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and money market $		573,904		$	2,887			2.02		$	546,884		$	2,801			2.08		$	450,918		$	2,397			2.14
Savings		204,318			119			0.23			211,905			142			0.27			233,676			286			0.49
Time		821,725			7,863			3.84			793,803			7,805			3.99			755,224			8,004			4.26

Total interest-bearing deposits		1,599,947			10,869			2.72			1,552,592			10,748			2.81			1,439,818			10,687			2.99
Short-term borrowings		17,757			211			4.77			44,297			458			4.19			61,689			356			2.32
Other borrowings		95,792			1,061			4.44			93,549			1,021			4.43			149,442			1,703			4.58

Total interest-bearing liabilities		1,713,496			12,141			2.84			1,690,438			12,227			2.93			1,650,949			12,746			3.11
Non-interest bearing liabilities:
Demand deposits		389,323									380,544									387,962
Other liabilities		29,639									29,549									28,308

Total non-interest bearing liabilities		418,962									410,093									416,270
Stockholders’ equity		223,351									218,194									179,494

Total Liabilities and Stockholders’ Equity	$	2,355,809								$	2,318,725								$	2,246,713

Net interest income/spread (tax equivalent basis)					19,264			2.75	%					18,054			2.61	%					15,124			2.06	%

Tax-equivalent basis adjustment					(199	)								(197	)								(199	)

Net interest income				$	19,065								$	17,857								$	14,925

Net interest margin (tax equivalent basis)								3.43	%								3.30	%								2.80	%

(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.


	Year to Date
	June 30, 2025									March 31, 2025									June 30, 2024
	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:
Interest-bearing deposits with banks	$	19,939		$	446			4.51	%	$	20,802		$	226			4.41	%	$	61,551		$	1,697			5.54	%
Securities available for sale:
Taxable		406,416			7,247			3.60			408,427			3,623			3.60			401,645			4,353			2.18
Tax-exempt (1)		44,199			626			2.86			44,242			312			2.86			69,503			958			2.77

Total securities available for sale (1)		450,615			7,873			3.52			452,669			3,935			3.53			471,148			5,311			2.27
Loans receivable (1) (4) (5)		1,763,710			53,369			6.10			1,743,572			26,120			6.08			1,620,694			47,994			5.96

Total interest-earning assets		2,234,264			61,688			5.57			2,217,043			30,281			5.54			2,153,393			55,002			5.14
Non-interest earning assets:
Cash and due from banks		29,519									28,705									25,508
Allowance for credit losses		(20,445	)								(20,154	)								(18,559	)
Other assets		94,031									93,131									71,705

Total non-interest earning assets		103,105									101,682									78,654

Total Assets	$	2,337,369								$	2,318,725								$	2,232,047

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and money market $		560,469		$	5,688			2.05		$	546,884		$	2,801			2.08		$	450,372		$	4,707			2.10
Savings		208,090			261			0.25			211,905			142			0.27			234,611			536			0.46
Time		807,841			15,668			3.91			793,803			7,805			3.99			740,211			15,553			4.23

Total interest-bearing deposits		1,576,400			21,617			2.77			1,552,592			10,748			2.81			1,425,194			20,796			2.93
Short-term borrowings		30,954			669			4.36			44,297			458			4.19			59,843			692			2.33
Other borrowings		94,676			2,082			4.43			93,549			1,021			4.43			152,470			3,485			4.60

Total interest-bearing liabilities		1,702,030			24,368			2.89			1,690,438			12,227			2.93			1,637,507			24,973			3.07
Non-interest bearing liabilities:
Demand deposits		384,958									380,544									387,014
Other liabilities		29,594									29,549									26,735

Total non-interest bearing liabilities		414,552									410,093									413,749
Stockholders’ equity		220,787									218,194									180,791

Total Liabilities and Stockholders’ Equity	$	2,337,369								$	2,318,725								$	2,232,047

Net interest income/spread (tax equivalent basis)					37,320			2.68	%					18,054			2.61	%					30,029			2.07	%

Tax-equivalent basis adjustment					(397	)								(197	)								(394	)

Net interest income				$	36,923								$	17,857								$	29,635

Net interest margin (tax equivalent basis)								3.37	%								3.30	%								2.80	%

(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	2025			2024
Net interest income	$	19,065		$	14,925
Net income		6,205			4,213
Net interest spread (fully taxable equivalent)		2.75	%		2.06	%
Net interest margin (fully taxable equivalent)		3.43	%		2.80	%
Return on average assets		1.06	%		0.75	%
Return on average equity		11.14	%		9.44	%
Return on average tangible equity		12.83	%		11.29	%
Basic earnings per share	$	0.67		$	0.52
Diluted earnings per share	$	0.67		$	0.52

For the Six Months Ended June 30	2025			2024
Net interest income		36,923			29,635
Net income		11,978			8,646
Net interest spread (fully taxable equivalent)		2.68	%		2.07	%
Net interest margin (fully taxable equivalent)		3.37	%		2.80	%
Return on average assets		1.03	%		0.78	%
Return on average equity		10.94	%		9.62	%
Return on average tangible equity		12.62	%		11.49	%
Basic earnings per share		1.30			1.07
Diluted earnings per share		1.30			1.07

As of June 30	2025			2024
Total assets	$	2,365,350		$	2,235,316
Total loans receivable		1,790,574			1,641,355
Allowance for credit losses		20,908			17,806
Total deposits		1,997,834			1,811,172
Stockholders’ equity		225,425			182,187
Trust assets under management		207,402			201,079
Book value per share	$	24.34		$	22.52
Tangible book value per share	$	21.17		$	18.88
Equity to total assets		9.53	%		8.15	%
Allowance to total loans receivable		1.17	%		1.08	%
Nonperforming loans to total loans		0.45	%		0.47	%
Nonperforming assets to total assets		0.34	%		0.34	%

NORWOOD FINANCIAL CORP

Consolidated Statements of Income (unaudited)

(dollars in thousands, except per share data)


Three months ended	June 30 2025			March 31 2025			December 31 2024			September 30 2024			June 30 2024
INTEREST INCOME
Loans receivable, including fees	$	27,115		$	25,988		$	26,122		$	25,464		$	24,121
Securities		3,871			3,870			2,789			2,526			2,584
Other		220			226			574			497			966

Total interest income		31,206			30,084			29,485			28,487			27,671
INTEREST EXPENSE
Deposits		10,869			10,748			10,984			10,553			10,687
Borrowings		1,272			1,479			1,876			2,003			2,059

Total interest expense		12,141			12,227			12,860			12,556			12,746

NET INTEREST INCOME		19,065			17,857			16,625			15,931			14,925
PROVISION FOR (RELEASE OF) CREDIT LOSSES		950			857			1,604			1,345			347

NET INTEREST INCOME AFTER (RELEASE OF) PROVISION FOR CREDIT LOSSES		18,115			17,000			15,021			14,586			14,578
OTHER INCOME
Service charges and fees		1,514			1,513			1,595			1,517			1,504
Income from fiduciary activities		226			325			224			256			225
Net realized (losses) gains on sales of securities		—			—			(19,962	)		—			—
Gains on sales of loans, net		65			47			50			103			36
Gains on sales of foreclosed real estate owned		—			—			—			—			32
Earnings and proceeds on life insurance policies		266			286			275			261			253
Other		177			180			159			158			157

Total other income		2,248			2,351			(17,659	)		2,295			2,207
OTHER EXPENSES
Salaries and employee benefits		6,605			6,472			6,690			6,239			5,954
Occupancy, furniture and equipment, net		2,538			1,378			1,291			1,269			1,229
Foreclosed real estate		137			4			9			9			15
FDIC insurance assessment		355			406			335			339			309
Other		2,896			3,804			5,094			4,175			3,937

Total other expenses		12,531			12,064			13,419			12,031			11,444
INCOME BEFORE TAX (BENEFIT) EXPENSE		7,832			7,287			(16,057	)		4,850			5,341
INCOME TAX (BENEFIT) EXPENSE		1,627			1,514			(3,406	)		1,006			1,128

NET (LOSS) INCOME	$	6,205		$	5,773		$	(12,651	)	$	3,844		$	4,213

Basic (loss) earnings per share	$	0.67		$	0.63		$	(1.54	)	$	0.48		$	0.52

Diluted (loss) earnings per share	$	0.67		$	0.63		$	(1.54	)	$	0.48		$	0.52

Book Value per share	$	24.34		$	23.84		$	23.02		$	24.18		$	22.52
Tangible Book Value per share		21.17			20.66			19.85			20.54			18.88
Return on average assets (annualized)		1.06	%		1.01	%		-2.19	%		0.68	%		0.75	%
Return on average equity (annualized)		11.14	%		10.73	%		-26.08	%		8.09	%		9.44	%
Return on average tangible equity (annualized)		12.83	%		12.40	%		-30.77	%		9.58	%		11.29	%
Net interest spread (fte)		2.75	%		2.61	%		2.31	%		2.23	%		2.06	%
Net interest margin (fte)		3.43	%		3.30	%		3.04	%		2.99	%		2.80	%
Allowance for credit losses to total loans		1.17	%		1.15	%		1.16	%		1.12	%		1.08	%
Net charge-offs to average loans (annualized)		0.08	%		0.07	%		0.12	%		0.08	%		0.13	%
Nonperforming loans to total loans		0.45	%		0.45	%		0.46	%		0.47	%		0.47	%
Nonperforming assets to total assets		0.34	%		0.33	%		0.34	%		0.35	%		0.34	%