# EDGAR Filing Document

**Accession Number:** 0001013272
**File Stem:** 0001193125-25-163087
**Filing Date:** 2025-7
**Character Count:** 38448
**Document Hash:** e2fd4c352c6f5db0bb206fdf0a3eea95
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-163087.hdr.sgml**: 20250723

**ACCESSION NUMBER**: 0001193125-25-163087

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250722

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250723

**DATE AS OF CHANGE**: 20250723

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NORWOOD FINANCIAL CORP
- **CENTRAL INDEX KEY:** 0001013272
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 232828306
- **STATE OF INCORPORATION:** PA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-28364
- **FILM NUMBER:** 251141819

**BUSINESS ADDRESS:**
- **STREET 1:** 717 MAIN ST
- **STREET 2:** PO BOX 269
- **CITY:** HONESDALE
- **STATE:** PA
- **ZIP:** 18431
- **BUSINESS PHONE:** 570-253-8500

**MAIL ADDRESS:**
- **STREET 1:** 717 MAIN ST
- **STREET 2:** PO BOX 269
- **CITY:** HONESDALE
- **STATE:** PA
- **ZIP:** 18431

?xml version='1.0' encoding='ASCII'? 8-K

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

### FORM 8-K

#### CURRENT REPORT

#### Pursuant to Section 13 or 15(d)

#### of the Securities Exchange Act of 1934

#### Date of Report (Date of earliest event reported) July 22, 2025

## NORWOOD FINANCIAL CORP

#### (Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Pennsylvania** | **0-28364** | **23-2828306** |
| **(State or other jurisdiction**<br> **of incorporation)** | **(Commission**<br> **File Number)** | **(IRS Employer**<br> **Identification No.)** |

---

---

| | |
|:---|:---|
| **717 Main Street, Honesdale, Pennsylvania** | **18431** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

#### Registrant's telephone number, including area code: (570) 253-1455

#### Not Applicable

#### (Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br> **symbol(s)** | **Name of each exchange<br>on which registered** |
| Common Stock, par value $0.10 per share | NWFL | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

#### NORWOOD FINANCIAL CORP

#### INFORMATION TO BE INCLUDED IN THE REPORT

#### Item 2.02 Results of Operations and Financial Condition.
On July 22, 2025, Norwood Financial Corp (the "Company") issued a press release announcing its earnings for the three and six months ended June 30, 2025. A copy of the press release is furnished with this report as exhibit 99.1 hereto and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

#### Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:

The following exhibits are being furnished with this report.

---

| | |
|:---|:---|
| No. | Description |
| 99.1 | [Press Release dated July 22, 2025.](d23216dex991.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **NORWOOD FINANCIAL CORP** | **NORWOOD FINANCIAL CORP** |
| Date:July 22, 2025 | By: | /s/ John M. McCaffery |
|  |  | John M. McCaffery<br> Executive Vice President and Chief Financial Officer<br> (Duly Authorized Representative) |

---

## Exhibit 99.1

**Exhibit 99.1**![LOGO](g23216g0723023125023.jpg)

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<sup>th</sup> 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<sup>th</sup> 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 | Year-Over Year | Year-Over Year | Linked Quarter | Linked Quarter | Year-to-Date | Year-to-Date | Year-to-Date |
|  | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 6 Months Ended | 6 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 | $19065 | $14925 | $4140 | $17857 | $1208 | $36923 | $29635 | $7288 |
|  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 | $6205 | $4213 | $1992 | $5773 | $432 | $11978 | $8646 | $3332 |
|  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 | Three months ended | Six months ended | Six months ended |
|  | June 30 | June 30 | June 30 | June 30 |
| (dollars in thousands) | 2025 | 2024 | 2025 | 2024 |
|  Net Interest Income | $19065 | $14925 | $36923 | $29635 |
|  Taxable equivalent basis adjustment using 21% marginal tax rate | 199 | 199 | 397 | 394 |
|  Net interest income on a fully taxable equivalent basis | $19264 | $15124 | $37320 | $30029 |
|  | Three months ended | Three months ended | Six months ended | Six months ended |
|  | June 30 | June 30 | June 30 | June 30 |
| (dollars in thousands) | 2025 | 2024 | 2025 | 2024 |
|  Average equity | $223351 | $179494 | $220787 | $180791 |
|  Average goodwill and other intangibles | (29394) | (29457) | (29402) | (29466) |
|  Average tangible equity | $193957 | $150037 | $191385 | $151325 |

---

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

<u>www.waynebank.com</u>

------

**NORWOOD FINANCIAL CORP** 

**Consolidated Balance Sheets** 

**(dollars in thousands, except share and per share data)** 

**(unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **June 30** | **June 30** |
|  | **2025** | 2024 |
|  ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | $**32052** | $29903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing deposits with banks | **20993** | 39492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | **53045** | 69395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale | **402460** | 397578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans receivable | **1790574** | 1641355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowance for credit losses | **20908** | 17806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loans receivable | **1769666** | 1623549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regulatory stock, at cost | **7538** | 6443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank premises and equipment, net | **21608** | 18265 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank owned life insurance | **46099** | 46121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest receivable | **8642** | 8329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets, net | **17693** | 21707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | **29266** | 29266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other intangible assets | **121** | 183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | **9212** | 14480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL ASSETS | $**2365350** | $2235316 |
|  LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-interest bearing demand | $**406358** | $391849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing | **1591476** | 1419323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deposits | **1997834** | 1811172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | **26500** | 62335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other borrowings | **85350** | 148087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest payable | **10975** | 13329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | **19266** | 18206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL LIABILITIES | **2139925** | 2053129 |
|  STOCKHOLDERS' EQUITY |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred Stock, no par value per share, authorized 5,000,000 shares | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surplus | **126990** | 98082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | **131199** | 139070 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury stock, at cost: 2025: 229,983 shares, 2024: 221,540 shares | **(6208)** | (5977) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | **(27505)** | (49819) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL STOCKHOLDERS' EQUITY | **225425** | 182187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $**2365350** | $2235316 |

---

------

**NORWOOD FINANCIAL CORP** 

**Consolidated Statements of Income** 

**(dollars in thousands, except per share data)** 

**(unaudited)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, |
|  | **2025** | 2024 | **2025** | 2024 |
|  INTEREST INCOME |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans receivable, including fees | $**27115** | $24121 | $**53103** | $47802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities | **3871** | 2584 | **7742** | 5109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | **220** | 966 | **446** | 1697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Interest income | **31206** | 27671 | **61291** | 54608 |
|  INTEREST EXPENSE |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | **10869** | 10687 | **21617** | 20796 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | **211** | 356 | **669** | 692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other borrowings | **1061** | 1703 | **2082** | 3485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Interest expense | **12141** | 12746 | **24368** | 24973 |
|  NET INTEREST INCOME | **19065** | 14925 | **36923** | 29635 |
|  PROVISION FOR (RELEASE OF) CREDIT LOSSES | **950** | 347 | **1807** | (276) |
|  NET INTEREST INCOME AFTER PROVISION FOR (RELEASE |  |  |  |  |
|  OF) CREDIT LOSSES | **18115** | 14578 | **35116** | 29911 |
|  OTHER INCOME |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service charges and fees | **1514** | 1504 | **3027** | 2847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from fiduciary activities | **226** | 225 | **551** | 463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on sales of loans, net | **65** | 36 | **112** | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings and proceeds on life insurance policies | **266** | 253 | **552** | 520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | **177** | 189 | **357** | 341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income | **2248** | 2207 | **4599** | 4213 |
|  OTHER EXPENSES |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salaries and employee benefits | **6605** | 5954 | **13077** | 12090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy, furniture and equipment | **1349** | 1229 | **2727** | 2489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Data processing and related operations | **1189** | 1024 | **2274** | 2046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxes, other than income | **192** | 179 | **385** | 272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees | **623** | 508 | **1282** | 1092 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FDIC Insurance assessment | **355** | 309 | **761** | 670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreclosed real estate | **137** | 15 | **141** | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangibles | **15** | 19 | **30** | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | **2066** | 2207 | **3918** | 4442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other expenses | **12531** | 11444 | **24595** | 23175 |
|  INCOME BEFORE TAX EXPENSE | **7832** | 5341 | **15120** | 10949 |
|  INCOME TAX EXPENSE | **1627** | 1128 | **3142** | 2303 |
|  NET INCOME | $**6205** | $4213 | $**11978** | $8646 |
|  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** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|  | **Average**<br>**Balance**<br>**(2)** |<br>**Interest**<br>**(1)** | **Average**<br>**Rate**<br>**(3)** | **Average**<br>**Balance**<br>**(2)** |<br>**Interest**<br>**(1)** | **Average**<br>**Rate**<br>**(3)** | **Average**<br>**Balance**<br>**(2)** |<br>**Interest**<br>**(1)** | **Average**<br>**Rate**<br>**(3)** |
|  **Assets** |  |  |  |  |  |  |  |  |  |
|  **Interest-earning assets:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing deposits with banks | $19085 | $220 | 4.62% | $20802 | $226 | 4.41% | $69173 | $967 | 5.62% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable | 404428 | 3624 | 3.59 | 408427 | 3623 | 3.60 | 401014 | 2206 | 2.21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt (1) | 44158 | 312 | 2.83 | 44242 | 312 | 2.86 | 69126 | 477 | 2.78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total securities available for sale (1) | 448586 | 3936 | 3.52 | 452669 | 3935 | 3.53 | 470140 | 2683 | 2.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans receivable (1) (4) (5) | 1783626 | 27249 | 6.13 | 1743572 | 26120 | 6.08 | 1629283 | 24220 | 5.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest-earning assets** | 2251297 | 31405 | 5.60 | 2217043 | 30281 | 5.54 | 2168596 | 27870 | 5.17 |
|  **Non-interest earning assets:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | 30323 |  |  | 28705 |  |  | 26422 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | (20733) |  |  | (20154) |  |  | (18023) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 94922 |  |  | 93131 |  |  | 69718 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-interest earning assets** | 104512 |  |  | 101682 |  |  | 78117 |  |  |
|  **Total Assets** | $2355809 |  |  | $2318725 |  |  | $2246713 |  |  |
|  **Liabilities and Stockholders' Equity** |  |  |  |  |  |  |  |  |  |
|  **Interest-bearing liabilities:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing demand and money market $ | 573904 | $2887 | 2.02 | $546884 | $2801 | 2.08 | $450918 | $2397 | 2.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Savings | 204318 | 119 | 0.23 | 211905 | 142 | 0.27 | 233676 | 286 | 0.49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time | 821725 | 7863 | 3.84 | 793803 | 7805 | 3.99 | 755224 | 8004 | 4.26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest-bearing deposits** | 1599947 | 10869 | 2.72 | 1552592 | 10748 | 2.81 | 1439818 | 10687 | 2.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | 17757 | 211 | 4.77 | 44297 | 458 | 4.19 | 61689 | 356 | 2.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other borrowings | 95792 | 1061 | 4.44 | 93549 | 1021 | 4.43 | 149442 | 1703 | 4.58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest-bearing liabilities** | 1713496 | 12141 | 2.84 | 1690438 | 12227 | 2.93 | 1650949 | 12746 | 3.11 |
|  **Non-interest bearing liabilities:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits | 389323 |  |  | 380544 |  |  | 387962 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 29639 |  |  | 29549 |  |  | 28308 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-interest bearing liabilities** | 418962 |  |  | 410093 |  |  | 416270 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stockholders' equity | 223351 |  |  | 218194 |  |  | 179494 |  |  |
|  **Total Liabilities and Stockholders' Equity** | $2355809 |  |  | $2318725 |  |  | $2246713 |  |  |
|  Net interest income/spread (tax equivalent basis) |  | 19264 | 2.75% |  | 18054 | 2.61% |  | 15124 | 2.06% |
|  Tax-equivalent basis adjustment |  | (199) |  |  | (197) |  |  | (199) |  |
|  Net interest income |  | $19065 |  |  | $17857 |  |  | $14925 |  |
|  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** | **Year to Date** | **Year to Date** | **Year to Date** | **Year to Date** | **Year to Date** | **Year to Date** | **Year to Date** | **Year to Date** |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|  | **Average**<br>**Balance**<br>**(2)** |<br>**Interest**<br>**(1)** | **Average**<br>**Rate**<br>**(3)** | **Average**<br>**Balance**<br>**(2)** |<br>**Interest**<br>**(1)** | **Average**<br>**Rate**<br>**(3)** | **Average**<br>**Balance**<br>**(2)** |<br>**Interest**<br>**(1)** | **Average**<br>**Rate**<br>**(3)** |
|  **Assets** |  |  |  |  |  |  |  |  |  |
|  **Interest-earning assets:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing deposits with banks | $19939 | $446 | 4.51% | $20802 | $226 | 4.41% | $61551 | $1697 | 5.54% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable | 406416 | 7247 | 3.60 | 408427 | 3623 | 3.60 | 401645 | 4353 | 2.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt (1) | 44199 | 626 | 2.86 | 44242 | 312 | 2.86 | 69503 | 958 | 2.77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total securities available for sale (1) | 450615 | 7873 | 3.52 | 452669 | 3935 | 3.53 | 471148 | 5311 | 2.27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans receivable (1) (4) (5) | 1763710 | 53369 | 6.10 | 1743572 | 26120 | 6.08 | 1620694 | 47994 | 5.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest-earning assets** | 2234264 | 61688 | 5.57 | 2217043 | 30281 | 5.54 | 2153393 | 55002 | 5.14 |
|  **Non-interest earning assets:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | 29519 |  |  | 28705 |  |  | 25508 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | (20445) |  |  | (20154) |  |  | (18559) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 94031 |  |  | 93131 |  |  | 71705 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-interest earning assets** | 103105 |  |  | 101682 |  |  | 78654 |  |  |
|  **Total Assets** | $2337369 |  |  | $2318725 |  |  | $2232047 |  |  |
|  **Liabilities and Stockholders' Equity** |  |  |  |  |  |  |  |  |  |
|  **Interest-bearing liabilities:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing demand and money market $ | 560469 | $5688 | 2.05 | $546884 | $2801 | 2.08 | $450372 | $4707 | 2.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Savings | 208090 | 261 | 0.25 | 211905 | 142 | 0.27 | 234611 | 536 | 0.46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time | 807841 | 15668 | 3.91 | 793803 | 7805 | 3.99 | 740211 | 15553 | 4.23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest-bearing deposits** | 1576400 | 21617 | 2.77 | 1552592 | 10748 | 2.81 | 1425194 | 20796 | 2.93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | 30954 | 669 | 4.36 | 44297 | 458 | 4.19 | 59843 | 692 | 2.33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other borrowings | 94676 | 2082 | 4.43 | 93549 | 1021 | 4.43 | 152470 | 3485 | 4.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total interest-bearing liabilities** | 1702030 | 24368 | 2.89 | 1690438 | 12227 | 2.93 | 1637507 | 24973 | 3.07 |
|  **Non-interest bearing liabilities:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits | 384958 |  |  | 380544 |  |  | 387014 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 29594 |  |  | 29549 |  |  | 26735 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-interest bearing liabilities** | 414552 |  |  | 410093 |  |  | 413749 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stockholders' equity | 220787 |  |  | 218194 |  |  | 180791 |  |  |
|  **Total Liabilities and Stockholders' Equity** | $2337369 |  |  | $2318725 |  |  | $2232047 |  |  |
|  Net interest income/spread (tax equivalent basis) |  | 37320 | 2.68% |  | 18054 | 2.61% |  | 30029 | 2.07% |
|  Tax-equivalent basis adjustment |  | (397) |  |  | (197) |  |  | (394) |  |
|  Net interest income |  | $36923 |  |  | $17857 |  |  | $29635 |  |
|  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 | $**19065** | $14925 |
|  Net income | **6205** | 4213 |
|  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 |
| **<u>For the Six Months Ended June 30</u>** | **2025** | 2024 |
|  Net interest income | **36923** | 29635 |
|  Net income | **11978** | 8646 |
|  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 | $**2365350** | $2235316 |
|  Total loans receivable | **1790574** | 1641355 |
|  Allowance for credit losses | **20908** | 17806 |
|  Total deposits | **1997834** | 1811172 |
|  Stockholders' equity | **225425** | 182187 |
|  Trust assets under management | **207402** | 201079 |
|  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<br>2025 | March 31<br>2025 | December 31<br>2024 | September 30<br>2024 | June 30<br>2024 |
|  INTEREST INCOME |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans receivable, including fees | $27115 | $25988 | $26122 | $25464 | $24121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities | 3871 | 3870 | 2789 | 2526 | 2584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 220 | 226 | 574 | 497 | 966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest income | 31206 | 30084 | 29485 | 28487 | 27671 |
|  INTEREST EXPENSE |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 10869 | 10748 | 10984 | 10553 | 10687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 1272 | 1479 | 1876 | 2003 | 2059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest expense | 12141 | 12227 | 12860 | 12556 | 12746 |
|  NET INTEREST INCOME | 19065 | 17857 | 16625 | 15931 | 14925 |
|  PROVISION FOR (RELEASE OF) CREDIT LOSSES | 950 | 857 | 1604 | 1345 | 347 |
|  NET INTEREST INCOME AFTER (RELEASE OF) PROVISION FOR CREDIT LOSSES | 18115 | 17000 | 15021 | 14586 | 14578 |
|  OTHER INCOME |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service charges and fees | 1514 | 1513 | 1595 | 1517 | 1504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from fiduciary activities | 226 | 325 | 224 | 256 | 225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized (losses) gains on sales of securities |  |  | (19962) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on sales of loans, net | 65 | 47 | 50 | 103 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on sales of foreclosed real estate owned |  |  |  |  | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings and proceeds on life insurance policies | 266 | 286 | 275 | 261 | 253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 177 | 180 | 159 | 158 | 157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income | 2248 | 2351 | (17659) | 2295 | 2207 |
|  OTHER EXPENSES |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salaries and employee benefits | 6605 | 6472 | 6690 | 6239 | 5954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy, furniture and equipment, net | 2538 | 1378 | 1291 | 1269 | 1229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreclosed real estate | 137 | 4 | 9 | 9 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FDIC insurance assessment | 355 | 406 | 335 | 339 | 309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 2896 | 3804 | 5094 | 4175 | 3937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other expenses | 12531 | 12064 | 13419 | 12031 | 11444 |
|  INCOME BEFORE TAX (BENEFIT) EXPENSE | 7832 | 7287 | (16057) | 4850 | 5341 |
|  INCOME TAX (BENEFIT) EXPENSE | 1627 | 1514 | (3406) | 1006 | 1128 |
|  NET (LOSS) INCOME | $6205 | $5773 | $(12651) | $3844 | $4213 |
|  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% |

---