Start here if you're new
what it is
Norwood is a small Pennsylvania bank that makes money from loans, deposits, and wealth services through Wayne Bank.
how it gets paid
Last year Norwood Financial made $8M in revenue. business lending services was the main engine at $2.3M, or 29% of sales.
why it's growing
Revenue grew 8.1% last year. EDGAR shows the latest quarter up 188% on revenue and 149% on EPS versus the prior year.
what just happened
Revenue hit $6M and EPS reached $2.22, but the full-year picture still looks rough.
At a glance
B balance sheet — gets the job done, barely
35/100 earnings predictability — expect surprises
43.3x trailing p/e — you're paying up for this one
4.5% dividend yield — cash in your pocket every quarter
-$0.02 fy2024 eps est
xvary composite: 60/100 — average
What they do
Norwood is a small Pennsylvania bank that makes money from loans, deposits, and wealth services through Wayne Bank.
This is a local-bank moat, not a tech moat. You win by being the lender, deposit box, and advisor people already use, and Norwood is about to run a combined $2.9 billion asset base across 33 offices after the PB Bankshares deal. Banking jargon → deposits → your cheap funding source → so what: sticky local accounts can support lending margins if credit stays clean.
How they make money
$8M
annual revenue · their business grew +8.1% last year
business lending services
$2.3M
personal lending services
$1.8M
deposit account fees
$1.5M
money market and savings products
$1.2M
trust and investment management
$0.8M
financial planning and estate services
$0.4M
The products that matter
makes loans and books interest income
Commercial & Consumer Loans
$126.5M of interest income
this is the engine. It produced $126.5M last year, which tells you the bank lives or dies by loan yields, funding costs, and credit quality.
core profit driver
gathers deposits and manages funding costs
Deposit Services
3.60% net interest margin
deposits are the raw material. If deposit costs rise faster than loan yields, that 3.60% spread gets squeezed and your earnings follow it down.
funding base
adds fee income outside lending
Trust & Investment
part of $23.5M non-interest income
fee income matters because it does not depend on the loan-deposit spread. At $23.5M, it helps diversify the story, but it is still the side business.
smaller buffer
Key numbers
43.3x
trailing p/e
P/E → stock price divided by trailing earnings → so what: you are paying 43.3 times profit for a bank with 2024 EPS of -$0.02 and trailing EPS of just $0.65.
4.5%
dividend yield
Dividend yield → annual cash payout as a percent of your share price → so what: the income looks nice until you remember 2024 earnings were negative.
$215M
long-term debt
Long-term debt → money owed over years → so what: debt equals 41% of capital, which reduces flexibility if credit costs rise.
0.85
beta
Beta → how jumpy the stock is versus the market → so what: NWFL has traded calmer than the market even while its earnings got much uglier.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 75 / 100
- long-term debt $215M (41% of capital)
B — risk rank looks solid but long-term debt needs watching.
Total return vs. market
Return history isn't available for NWFL right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $6M and EPS reached $2.22, but the full-year picture still looks rough.
EDGAR shows the latest quarter up 188% on revenue and 149% on EPS versus the prior year. Contrast that with full-year EPS of -$0.02 in 2024 versus $2.07 in 2023.
$6M
revenue
$2.22
eps
n/a
n/a
the number that mattered
The number is -$1.54. That was Q4 2024 EPS from the quarterly history, and it explains why one strong recent quarter does not erase the damage.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the top risk is integrating PB Bankshares without giving back the earnings improvement.
med
PB Bankshares integration risk
The deal closed on Jan 5, 2026. Cost saves that miss, systems that do not mesh, or credit that comes in worse than expected would hit the thesis fast.
Why it matters: if the acquisition fails to add the expected earnings lift, the stock is just a small bank with average growth and a dividend.
med
Net interest margin compression
NWFL reported a 3.60% net interest margin. In human-speak, that is the spread between what the bank earns on assets and what it pays for funding. A narrower spread means lower earnings even if loan balances look fine.
Why it matters: this bank produced $86.2M of trailing revenue, so a thinner margin has an outsized effect on a company this size.
med
Regional credit concentration
This is a Pennsylvania-focused lender. If local borrowers weaken, the damage shows up through higher provisions, slower loan growth, and more pressure on the dividend case.
Why it matters: you do not have national diversification here. A local slowdown hits more of the book at once.
This is not a many-ways-to-win stock. The spread, the deal, and local credit conditions carry most of the investment case.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
first full quarter after the deal
Watch the next quarterly report for the first clean read on PB Bankshares integration. One quarter will not settle the debate, but it will tell you whether management is starting from ahead or behind.
metric
net interest margin
3.60% is the key operating number. If it holds or improves, the cheap multiple has a case. If it slips, the stock gets a lot less cheap.
risk
dividend coverage
A 4.1% yield helps the story only if earnings support it. Watch whether integration costs or credit provisions start crowding out the payout.
trend
earnings consistency
The bank has a 35/100 earnings predictability score. You want the next few quarters to look boring. Boring is bullish for a community bank.
Analyst rankings
earnings predictability
35 / 100
in human-speak, analysts do not see this as a clean, steady earner yet.
risk rank
2
that puts it in the safer bucket versus many small caps, but safer does not mean smooth when bank earnings are this spread-sensitive.
source: institutional data
Institutional activity
institutional ownership data for NWFL is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$28
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive