Shareholder letter
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Quarterly Report for Quarter Ended December 31, 2025 We ended 2025 on a positive note and with good momentum, as the Norwood team achieved strong results by continuing to serve our customers and communities. In the fourth quarter, we expanded our net interest spread by 62 basis points, increasing net interest income 62% compared with the fourth quarter of 2024. Net income and earnings per share more than doubled on an adjusted basis, and we improved returns on both average assets and tangible equity. We maintained focus on our mission to make Every Day Better even while we closed on the Presence Bank acquisition. By nearly any measure, 2025 was a great year. The improvement in our results and financial position are a result of the portfolio repositioning we completed in December of 2024, as well as strong loan and deposit growth of 8% and 11.9%, respectively, during the year. The repositioning resulted in a more robust balance sheet and higher quality earnings. It was the right thing to do for our bank, our customers, and our shareholders. It served us well in 2025 and should continue to benefit us in 2026. Our biggest achievement in 2025 was announcing and preparing for the acquisition of Presence Bank that closed on January 5. Presence Bank is a nearly 106-year-old institution that shares our values, culture, and commitment to high-quality customer service. With this acquisition, we grew our asset base by 20%, added four branches in the coveted southeast and south-central Pennsylvania region, and enhanced our talent base with excellent employees. These additions better position us to serve our communities and bring value to our customers. I am pleased with our performance in 2025 and proud of what we were able to accomplish. We have great momentum, achieved strong results, and we're able to do the additional work to close the Presence Bank acquisition at the beginning of this year. Our capital base remains above “Well-Capitalized” targets, and our credit quality metrics remain strong. Going forward, we will continue to manage our deposits and assets to maintain our strong financial position, ensuring that we can continue serving our communities for years to come. We will actively grow through increased deposits and prudent investment decisions, as well as strategic M&A when an attractive and fairly valued target is available. Finally, we will combine these activities with a capital allocation framework that includes returning cash to shareholders through a reliable and growing dividend. I firmly believe that these priorities will allow us to continue to create value and build momentum for our shareholders in 2026 and beyond. James O. Donnelly President and Chief Executive Officer To Our Stockholders Selected Financial Highlights (unaudited) (dollars in thousands, except per share data) Three Months Ended December 31, 2025 2025 2024 Change Net interest income $ 20,944 $ 16,625 $ 4,319 Net interest spread (fte) 2.93% 2.31% 62 bps Net interest margin (fte) 3.60% 3.04% 56 bps Net income (loss) 7,442 (12,651) 20,093 Diluted earnings (loss) per share 0.81 (1.54) 2.35 Return on average assets 1.21% -2.19% 340 bps Return on tangible equity 14.01% -30.77% 4,478 bps NWFL NASDAQ Honesdale, PA Headquarters 1871 Founded 300 + Employees 4.56% Dividend Yield $2.4B Total Assets $1.9B Total Gross Loans $2.1B Total Deposits $242M Total Equity $260.69M Market Cap
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Quarterly Report for Quarter Ended December 31, 2025 For additional information and to stay informed on our progress, please visit wayne.bank/shareholder-services wayne.bank | Nasdaq symbol: NWFL | (570) 253-1455 | 1-800-598-5002 33 Offices 2 States 13 Counties Rejoined the Russell 2000 Index in 2023 Branch Footprint Note: Financials as of September 30, 2025 ; Market data as of September 30, 2025 Source: S&P Capital IQ Pro Customers Employees Community Shareholders Key Tenets for Success 150 Years in Business A Community Pillar Growth & Expansion Rewarding Shareholders Investment Proposition Strength. Security. Stability. Unified brand: Consolidated Wayne Bank, Bank of Cooperstown, Bank of the Finger Lakes, and Presence Bank (April 2026) under single Wayne Bank brand Disciplined underwriting culture Granular loan and deposit portfolio tied to our community Experienced Executive Team, aligned with Board of Directors, focused on delivering shareholder return Well-positioned to take advantage of market dislocation and M&A opportunities Attractive financial profile enhanced by the proposed offering and repositioning $1B – $5B in Asset Size PA NJ NY Acquired Presence Bank Branches