Overview

• U.S. regional bank reported record Q2 net income and net interest income

• Diluted EPS for Q2 rose to $0.86 from $0.67 a year earlier

• Company completed Presence Bancshares integration, supporting balance sheet growth

Outlook

• Company did not provide specific guidance for the current or upcoming periods in the press release

Result Drivers

• NET INTEREST INCOME - Record net interest income and margin expansion drove profitability, attributed to disciplined balance sheet management and larger franchise

• PRESENCE BANCSHARES INTEGRATION - Completion of Presence Bancshares integration supported growth in loans, deposits, and assets

• BALANCE SHEET GROWTH - Significant increases in loans receivable and deposits contributed to higher net interest income

Company press release: ID:nGNX9TkVHY

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Adjusted EPS	Miss	$0.86	$0.87 (2 Analysts)
Q2 EPS		$0.86
Q2 Net Interest Income		$26.80 mln
Q2 Net Interest Margin		3.90%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "hold."

• Wall Street's median 12-month price target for Norwood Financial Corp is $34.00, about 9.8% above its July 21 closing price of $30.96

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 21 - Bank First's Q2 net interest income rises, boosted by Centre acquisition

• July 22 - Farmers National Banc Q2 net interest income rises on Middlefield acquisition

• July 22 - Old National Bancorp's Q2 net income hits record on loan growth

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