Norwood Financial (NWFL)
NASDAQ:NWFL
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Norwood Financial
(NASDAQ:NWFL)
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Rating:63Neutral
Price Target:
$31.00
â–¼(-1.12% Downside)
Action:Downgraded
Date:05/14/26
Overall score is driven primarily by mid-range financial fundamentals (stronger balance sheet and solid margins, but weakening revenue and cash-flow momentum). The earnings call adds a positive tilt via improving NII/NIM and strong post-acquisition growth, while technical indicators are mildly soft and valuation is only moderate despite a strong dividend yield.
Positive Factors
Improved Balance Sheet
Lower leverage and growing equity materially strengthen financial flexibility for a regional bank. A ~0.31 debt-to-equity ratio and respectable TTM returns provide capacity to absorb credit losses, fund loan growth or acquisitions, and support dividends without immediate capital raises.
Negative Factors
Weak Revenue Momentum
A sharply negative TTM revenue trend and collapsing free-cash-flow growth signal top-line vulnerability. Even with margin gains, persistent revenue weakness can limit earnings durability, reduce reinvestment capacity, and make achievement of long-term targets dependent on sustained loan/fee recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Balance Sheet
Lower leverage and growing equity materially strengthen financial flexibility for a regional bank. A ~0.31 debt-to-equity ratio and respectable TTM returns provide capacity to absorb credit losses, fund loan growth or acquisitions, and support dividends without immediate capital raises.
Read all positive factors
Norwood Financial (NWFL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$335.32M
Dividend Yield4.21%
Average Volume (3M)20.15K
Price to Earnings (P/E)11.0
Beta (1Y)0.59
Revenue Growth37.90%
EPS Growth2989.42%
CountryUS
Employees264
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.78
Shares Outstanding10,890,699
10 Day Avg. Volume19,622
30 Day Avg. Volume20,152
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 Cap0.79
Enterprise Value/Revenue1.98
Enterprise Value/Gross Profit3.20
Enterprise Value/Ebitda7.90
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.45
Revenue Forecast (FY)$112.90M
Norwood Financial Business Overview & Revenue Model
Company Description
Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing and non-interest bearing transaction accou...
How the Company Makes Money
Norwood Financial primarily earns revenue through (1) net interest income and (2) noninterest income. Net interest income is generated by taking deposits and other funding (e.g., checking, savings, and time deposits) and using those funds to origi...
Norwood Financial Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive performance narrative: record net interest income, strong loan and deposit growth following the Presence Bank acquisition, margin expansion, improved adjusted earnings, and clear progress on integration and technology deployments that should drive future efficiency and revenue growth. Offsetting these positives were one-time merger charges (~$5M), higher provisions and nonperforming loans concentrated in commercial lending, and elevated near-term operating expenses due to technology and conversion investments. Management expects accretion to shareholder value earlier than planned and sees continued margin and fee-income tailwinds, but also signaled that some cost and competitive pressures may persist in the near term.Positive Updates
Record Net Interest Income
Net interest income reached a record $24.6 million in Q1 2026, an increase of 38% versus 2025 and up approximately $3.0 million on a linked-quarter basis due to higher interest-earning assets.
Negative Updates
Merger-Related Charges and GAAP Impact
Approximately $5.0 million of merger charges in Q1 2026 impacted GAAP results; management provided adjusted metrics excluding these one-time items.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Net Interest Income
Net interest income reached a record $24.6 million in Q1 2026, an increase of 38% versus 2025 and up approximately $3.0 million on a linked-quarter basis due to higher interest-earning assets.
Read all positive updates
Company Guidance
Management guided to modest near-term financial improvement driven by accretion and continued balance-sheet momentum: Q1 NII was a record $24.6M (up 38% YoY, +$3M linked-quarter) with NIM at 3.68%, and purchase-accounting contributed ~$435K pretax (~6 bps) in the quarter while scheduled yield accretion is ~$2.2M for FY2026 and ~$2.0M in 2027; they expect another ~3–5 bps of margin expansion over the next couple of quarters. They reiterated strong loan and deposit growth (loans +$46M, ~8.4% annualized since Jan. 5; deposits +$70M), healthy new-loan pricing (last 18 closings averaged 7.05%), an adjusted PPNR increase of ~11% linked-quarter, a Q1 merger charge of ~$5M, an OpEx run-rate near the Q1 level (~$16.1M/quarter, not expected below ~$15.08M), a coverage ratio of 1.09% (vs. 1.07 at year-end), nonperforming loans around ~$11M, CD costs near 3.6% with a goal to get CDs below 40% of deposits, and that tangible-book payback from the Presence acquisition should occur sooner than originally projected.Norwood Financial Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 134.89M | 136.14M | 101.43M | 103.66M | 85.60M | 79.43M |
| Gross Profit | 83.17M | 86.63M | 48.37M | 64.64M | 77.43M | 69.47M |
| EBITDA | 33.76M | 36.56M | 1.12M | 22.61M | 37.96M | 32.46M |
| Net Income | 25.71M | 27.75M | -160.00K | 16.76M | 29.23M | 24.91M |
Balance Sheet | ||||||
| Total Assets | 2.92B | 2.42B | 2.32B | 2.20B | 2.05B | 2.07B |
| Cash, Cash Equivalents and Short-Term Investments | 228.75M | 324.45M | 470.19M | 472.38M | 450.79M | 613.46M |
| Total Debt | 88.27M | 74.13M | 194.86M | 168.31M | 173.22M | 90.82M |
| Total Liabilities | 2.63B | 2.18B | 2.10B | 2.02B | 1.88B | 1.86B |
| Stockholders Equity | 283.94M | 242.16M | 213.51M | 181.07M | 167.09M | 205.26M |
Cash Flow | ||||||
| Free Cash Flow | 27.80M | 29.25M | 19.68M | 28.41M | 28.58M | 27.94M |
| Operating Cash Flow | 30.87M | 33.97M | 22.81M | 29.82M | 30.73M | 29.20M |
| Investing Cash Flow | -65.92M | -128.95M | -115.20M | -116.57M | -207.99M | -130.96M |
| Financing Cash Flow | 62.22M | 67.08M | 98.62M | 121.00M | 2.44M | 196.75M |
Norwood Financial Technical Analysis
Positive
31.35
Price Trends
30.08
Positive
29.66
Positive
28.00
Positive
Market Momentum
0.12
Negative
55.67
Neutral
43.59
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 31.35 is above the 20-day moving average (MA) of 29.96, above the 50-day MA of 30.08, and above the 200-day MA of 28.00, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 43.59 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 | $256.06M | 10.15 | 12.70% | 2.38% | 6.69% | 11.73% | |
72 Outperform | $287.82M | 11.81 | 11.99% | 1.99% | 6.08% | -2.72% | |
69 Neutral | $292.09M | 12.50 | 9.25% | 0.87% | 4.74% | 24.29% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $335.32M | 10.97 | 10.43% | 4.21% | 37.90% | 2989.42% | |
56 Neutral | $268.47M | 15.03 | 7.25% | 2.18% | 7.20% | 66.27% |
* Financial Sector Average
NWFL
Norwood Financial
30.79
6.06
24.49%
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Norwood Financial Corporate Events
Executive/Board ChangesShareholder Meetings
Norwood Financial Shareholders Back Board, Auditor and Pay
Positive
May 4, 2026
At its Annual Meeting of Stockholders held on April 28, 2026, Norwood Financial Corp reported that shareholders elected Kevin M. Lamont, Dr. Kenneth A. Phillips and Jeffrey S. Gifford to three-year terms on the board of directors. The meeting outc...
Business Operations and StrategyDividendsFinancial DisclosuresShareholder Meetings
Norwood Financial Highlights Strong 2025 Results and Integration
Positive
Apr 28, 2026
On April 28, 2026, Norwood Financial Corp used a slideshow at its virtual annual shareholders’ meeting to highlight recent strategic moves, including the integration of Presence Bank under the unified Wayne Bank brand. Management underscored...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Norwood Financial Reports Strong Q1 2026 Core Performance
Positive
Apr 27, 2026
On April 27, 2026, Norwood Financial reported first-quarter 2026 results showing record net interest income of $24.6 million and a higher net interest margin of 3.68%, driven largely by the integration of PB Bancshares, which boosted assets, loans...
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.