NWFL Doubles Earnings, Buys Its Way Bigger

Date of Call: Jan 22, 2026

Financials Results

• EPS: Adjusted earnings per share more than doubled in 2025

Business Commentary:

Financial Performance and Growth:

• NWFL reported net interest income increased by 62% compared to the fourth quarter of 2024, and net income and earnings per share more than doubled on an adjusted basis.
• The growth was driven by the expansion of the net interest spread by 62 basis points, strong loan and deposit growth, and the successful completion of the balance sheet repositioning in December 2024.

Strategic Acquisition and Integration:

• The acquisition of Presence Bank resulted in a 20% increase in NWFL's asset base and the addition of 4 branches in Southeast and South Central Pennsylvania.
• The acquisition aligned with NWFL's strategic priorities to enhance its geographic coverage and talent base, positioning the company to better serve its communities.

Operational Efficiency and Technology Integration:

• NWFL is leveraging AI tools, such as those implemented by Presence Bank, to enhance operational efficiency, particularly in credit underwriting processes.
• The integration of these tools aims to supplement the work of credit officers, allowing for quicker deal underwriting and improved customer experience.

Talent and Leadership Enhancements:

• NWFL has welcomed several key executives, including Janak Amin as Chief Operating Officer and Larry Witt as Chief Information Officer, following the acquisition.
• These additions are part of NWFL's strategy to strengthen its leadership bench and talent pool, ensuring continued growth and operational excellence.

Sentiment Analysis:

Overall Tone: Positive

• CEO stated 'We ended 2025 on a positive note and with good momentum' and 'I believe that our best days are ahead.' CFO noted 'solid quarter and leave our company well positioned for the future.'

Contradiction Point 1

M&A Deal Closing Timeline

Contradiction on the expected timeline for closing the Presence Bank merger, impacting strategic planning and market expectations.

Were there any questions during the earnings call? - Questioner's Name (Company Name)

20260122-2025 Q4: The transcript does not contain any direct questions from participants. The call featured introductory remarks, financial results presentations, and closing statements from the executives. - No direct statement on M&A timeline provided.

How is the company positioned regarding M&A opportunities, and when is the expected deal close? - Tyler Cacciatori (Stephens Inc.)

2025Q3: A Q4 close is unlikely due to calendar and operational/accounting issues... The closing calendar will start once the proxy is mailed out. - John McCaffery(CFO)