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Norwood Financial
(NASDAQ:NWFL)
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Rating:76Outperform
Price Target:
$38.00
â–²(16.46% Upside)
Action:Reiterated
Date:08/08/26
NWFL scores well primarily on improved financial performance (profitability recovery, stronger leverage, and positive cash generation) and constructive technical momentum (price above all major moving averages with positive MACD). Valuation adds support via a modest P/E and ~3.7% dividend yield. The main offset is earnings-call risk around the sizable single-credit charge-off and ongoing deposit competition that could raise funding costs and temper margin gains.
Positive Factors
Margin recovery and sustained profitability
TTM margin expansion and positive revenue trends indicate improved core lending economics and fee capture. Durable higher margins provide a buffer for credit volatility, support dividend payouts and reinvestment, and underpin sustainable return-on-equity generation across the next several quarters.
Negative Factors
Large single-borrower bankruptcy and charge-off
A concentrated, material charge-off highlights single-borrower and portfolio concentration risk. Such sizable losses can erode capital, raise provisioning, and inject earnings volatility over several quarters, complicating credit underwriting and capital allocation decisions.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin recovery and sustained profitability
TTM margin expansion and positive revenue trends indicate improved core lending economics and fee capture. Durable higher margins provide a buffer for credit volatility, support dividend payouts and reinvestment, and underpin sustainable return-on-equity generation across the next several quarters.
Read all positive factors
Norwood Financial (NWFL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$366.53M
Dividend Yield3.71%
Average Volume (3M)48.74K
Price to Earnings (P/E)10.7
Beta (1Y)0.55
Revenue Growth42.39%
EPS Growth1119.11%
CountryUS
Employees275
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.13
Shares Outstanding10,902,074
10 Day Avg. Volume36,556
30 Day Avg. Volume48,740
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.06
Price to Sales (P/S)1.89
P/FCF Ratio8.79
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$35.00Price Target Upside7.26% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.48
Revenue Forecast (FY)$113.20M
Norwood Financial Business Overview & Revenue Model
Company Description
Norwood Financial Corp. functions as the holding entity for Wayne Bank, delivering a comprehensive suite of financial products and services. The institution facilitates a broad array of deposit options, encompassing both interest-bearing and non-i...
How the Company Makes Money
Norwood Financial primarily makes money through community banking activities conducted by its bank subsidiary. The largest driver is typically net interest income: the company earns interest and fees on loans and other interest-earning assets (e.g...
Norwood Financial Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong financial and operational accomplishments: record quarterly earnings, substantial pre-provision revenue growth, margin expansion, completion of the Presence Bank integration, recovery of tangible book value dilution ahead of schedule, and a formal AI/leadership roadmap. Offsetting these positives were a material $7.7 million charge-off tied to a single borrower bankruptcy (driving elevated nonaccruals and provisions), some nonrecurring accounting items, elevated deposit competition that could pressure future margins, and localized payoffs that constrained loan growth. Overall, the results and execution milestones materially outweigh the isolated credit event and near-term deposit pressures.Positive Updates
Record Quarterly Earnings
Second-quarter GAAP net income of $9.3 million (record) and diluted EPS of $0.86 versus $6.2 million and $0.67 in the year-ago quarter — roughly a +50% increase in net income and ~+28% increase in EPS YoY.
Negative Updates
Single-Borrower Bankruptcy and Material Charge-off
On June 18 a customer with total loans of $22 million filed Chapter 11; Norwood recorded a $7.7 million net charge-off related to that credit. The bankruptcy is ongoing and increased the provision for credit losses.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Earnings
Second-quarter GAAP net income of $9.3 million (record) and diluted EPS of $0.86 versus $6.2 million and $0.67 in the year-ago quarter — roughly a +50% increase in net income and ~+28% increase in EPS YoY.
Read all positive updates
Company Guidance
Management guided that the combined franchise will sustain strong 2026 performance while completing the Presence integration and rolling out AI on a three‑year plan, and provided several concrete metrics: pipeline loan yields are in the high‑ to mid‑6% range; reported NIM was 3.9% (up 47 bps YoY and 22 bps QoQ, with ~$241k of one‑time items ≈3–4 bps); loan purchase‑accounting accretion was roughly $700k this quarter (expected to be similar over the next ~6 months) and core deposit intangible (CDI) amortization was about $300k (expected flat for the year). Management framed guidance against balance‑sheet and credit metrics of total assets ≈$2.9B, loans $2.26B, deposits $2.51B, allowance $25.6M (~1.13% of loans), nonaccruals ≈$22.5M and a $7.7M charge‑off tied to one bankruptcy; operating performance cited pre‑provision net revenue $13.6M (+55% YoY), year‑to‑date NII +39%, adjusted net income +42%, average tangible equity +15% and tangible book value per share $22.96 (versus $22.90 pre‑acquisition). They also warned deposit competition could push funding costs higher (SPOC deposit costs ~+2 bps in June) even as DDAs grow, and noted merger expenses are largely behind them (~$53k this quarter).Norwood Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 144.42M | 136.14M | 101.43M | 103.66M | 85.60M | 79.43M |
| Gross Profit | 90.23M | 86.63M | 48.37M | 64.64M | 77.43M | 69.47M |
| EBITDA | 38.41M | 36.56M | 1.12M | 22.61M | 37.96M | 32.46M |
| Net Income | 28.83M | 27.75M | -160.00K | 16.76M | 29.23M | 24.91M |
Balance Sheet | ||||||
| Total Assets | 2.91B | 2.42B | 2.32B | 2.20B | 2.05B | 2.07B |
| Cash, Cash Equivalents and Short-Term Investments | 499.26M | 324.45M | 470.19M | 472.38M | 450.79M | 613.46M |
| Total Debt | 65.51M | 74.13M | 194.86M | 168.31M | 173.22M | 90.82M |
| Total Liabilities | 2.62B | 2.18B | 2.10B | 2.02B | 1.88B | 1.86B |
| Stockholders Equity | 289.64M | 242.16M | 213.51M | 181.07M | 167.09M | 205.26M |
Cash Flow | ||||||
| Free Cash Flow | 34.55M | 29.25M | 19.68M | 28.41M | 28.58M | 27.94M |
| Operating Cash Flow | 33.02M | 33.97M | 22.81M | 29.82M | 30.73M | 29.20M |
| Investing Cash Flow | -85.55M | -128.95M | -115.20M | -116.57M | -207.99M | -130.96M |
| Financing Cash Flow | 59.78M | 67.08M | 98.62M | 121.00M | 2.44M | 196.75M |
Norwood Financial Technical Analysis
Positive
32.63
Price Trends
31.76
Positive
30.69
Positive
29.33
Positive
Market Momentum
0.75
Negative
65.47
Neutral
38.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWFL, the sentiment is Positive. The current price of 32.63 is below the 20-day moving average (MA) of 32.93, above the 50-day MA of 31.76, and above the 200-day MA of 29.33, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 65.47 is Neutral, neither overbought nor oversold. The STOCH value of 38.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWFL.
Norwood Financial Risk Analysis
Norwood Financial disclosed 26 risk factors in its most recent earnings report. Norwood Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Norwood Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $279.33M | 11.75 | 11.46% | 1.82% | 2.09% | -3.47% | |
77 Outperform | $333.99M | 12.92 | 12.52% | 1.44% | 4.97% | 28.06% | |
76 Outperform | $366.53M | 10.74 | 10.98% | 3.89% | 42.39% | 1119.11% | |
75 Outperform | $286.94M | 11.73 | 12.22% | 2.32% | 6.51% | 5.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $275.63M | 16.67 | 6.78% | 1.96% | 6.09% | 41.66% |
* Financial Sector Average
NWFL
Norwood Financial
34.24
10.06
41.63%
FUNC
First United
45.39
11.12
32.44%
OVLY
Oak Valley Bancorp [Ca]
33.36
5.80
21.04%
WNEB
Western New England Bancorp
14.00
2.34
20.07%
FVCB
FVCBankcorp
18.60
5.66
43.77%
FBLA
FB Bancorp, Inc.
15.69
4.02
34.45%
Norwood Financial Corporate Events
Business Operations and Strategy
Norwood Financial Charts Disciplined Growth Strategy Path
Positive
Jul 27, 2026
Norwood Financial Corp used its Q2 2026 investor presentation, dated July 27, 2026, to outline a disciplined growth strategy aimed at reinforcing its position as a high-performing regional community bank. The bank highlighted a structurally improv...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Norwood Financial Posts Record Second-Quarter 2026 Results
Positive
Jul 22, 2026
Norwood Financial Corp reported record second-quarter 2026 results, with net income reaching $9.3 million and net interest income rising to $26.8 million, supported by an expanded net interest margin and strong pre-provision net revenue. The compa...
Financial DisclosuresLegal Proceedings
Norwood Financial Reviews Bankruptcy-Linked Loan Exposure Disclosure
Negative
Jun 18, 2026
In June 2026, two customers of Wayne Bank, the banking subsidiary of Norwood Financial Corp, filed for personal and corporate Chapter 11 bankruptcy, affecting multiple entities they control. Wayne Bank holds five loans to four corporate entities t...
Business Operations and StrategyDividends
Norwood Financial Maintains Quarterly Dividend, Signals Ongoing Stability
Positive
Jun 18, 2026
On June 18, 2026, Norwood Financial Corp announced that its board declared a quarterly cash dividend of $0.32 per share, payable on August 3, 2026, to shareholders of record as of July 15, 2026. The payout matches the first-quarter 2026 dividend, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.