EL7.AI
StocksMedium•27 October 2026•
3 min read

Norwood Financial Posts Record Net Income of $11.763 Million in Third Quarter

Key Facts

1Net income was $11.763 million in the third quarter of 2026, compared with $8.334 million a year earlier and $9.328 million in the prior quarter.
2Diluted earnings per share reached $1.08, compared with $0.89 in the third quarter of 2025 and $0.86 in the second quarter of 2026.
3Net interest income rose to $28.009 million, from $20.458 million a year earlier and $26.839 million in the prior quarter.
4The net interest margin on a tax-equivalent basis was 4.01%, compared with 3.63% a year earlier and 3.90% in the prior quarter.
5Nonperforming loans as a share of total loans rose to 0.73% on September 30, 2026, from 0.36% a year earlier.

Norwood Financial, the parent company of Wayne Bank, reported results on October 27 for the third quarter and nine months ended September 30, 2026, posting net income of $11.763 million for the three months. Income rose from $8.334 million in the third quarter of 2025 and $9.328 million in the second quarter of 2026. The chief executive said the result set a record for the second consecutive quarter. Diluted earnings per share were $1.08, compared with $0.89 a year earlier and $0.86 in the prior quarter. The filing did not include a comparison with analyst estimates, and it provided no data on the stock's move following the announcement.

Net interest income, the difference between the interest revenue the company earns and the interest it pays, rose to $28.009 million in the third quarter, from $20.458 million in the same period last year and $26.839 million in the second quarter. This coincided with the net interest margin on a tax-equivalent basis widening to 4.01%, from 3.63% a year earlier and 3.90% in the prior quarter. The company said disciplined balance-sheet management contributed to the wider margin. The chief executive added that the settlement of one borrower's bankruptcy provided a one-time benefit. This exceptional effect puts part of the margin improvement in a context that extends beyond recurring operating performance.

The company also attributed its results to the contribution from the acquisition of Penns Business Bank, alongside disciplined execution and balance-sheet management. On the asset side, total assets were $2.952 billion on September 30, up from $2.908 billion on June 30. Total loans reached $2.294 billion, while deposits stood at $2.509 billion at the end of September. These figures show quarterly asset growth alongside loan and deposit bases near billion-dollar levels. Net income for the first nine months of 2026 was $24.821 million, compared with $20.313 million in the same period of 2025.

The earnings improvement came alongside an increase in nonperforming loans as a share of total loans, which stood at 0.73% on September 30, 2026, compared with 0.36% on the same date a year earlier. Part of the credit backdrop involves a borrower relationship for which the company recorded a charge-off of $729,000 in the second quarter. After a new entity purchased a loan that had been in default and the related core business, two loans remained with total exposure of $7.1 million. The filing thus places income growth and margin expansion alongside a year-over-year rise in the nonperforming-loan metric, with a defined borrower exposure remaining after the purchase. The filing did not provide a later earnings-call date or a specific subsequent development.

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