HONESDALE, Pa., Jan. 05, 2026 (GLOBE NEWSWIRE) -- Norwood Financial Corp (NASDAQ Global Market: NWFL) (“Norwood”), the holding company for Wayne Bank, announced today that it had completed its acquisition of PB Bankshares, Inc. (“PB Bankshares”) and its wholly-owned subsidiary, Presence Bank effective as of January 5, 2026. Presence Bank has been merged into Wayne Bank. At their election, PB Bankshares shareholders are receiving either $19.75 in cash or 0.7850 shares of Norwood common stock for each share o ...

Core Insights - The article discusses the positive outlook for bank stocks, particularly focusing on high dividend yield stocks, following a rebound in the market after a dip in April due to tariff plans [2][4] - The Federal Reserve's interest rate cuts, totaling 75 basis points this year, are expected to support banks' net interest income (NII) and accelerate deal-making activities in 2026 [2][3] Group 1: Bank Stocks Overview - Three bank stocks highlighted for their high dividend yields are Truist Financial Corp. (TFC), Columbia Banking System, Inc. (COLB), and Norwood Financial Corp. (NWFL) [2][5] - Each of these stocks has seen a share price increase of over 3% in the past year, with one stock rated as a Strong Buy and the others rated as Hold [5] Group 2: Norwood Financial Corp. (NWFL) - Norwood Financial, with $2.4 billion in assets as of September 30, 2025, is set to enhance its scale through the acquisition of PB Bankshares, expected to close on January 5, 2026 [6][7] - The company has a strong liquidity position, reporting long-term debt of $72.1 million and cash and cash equivalents of $49.3 million as of September 30, 2025 [8] - Norwood Financial raised its quarterly dividend by 3.2% to 32 cents per share, yielding 4.33%, and has increased its dividend six times over the past five years [9][10] Group 3: Columbia Banking System, Inc. (COLB) - Columbia Banking operates approximately 350 branches across eight Western states and has expanded its assets to nearly $70 billion following a merger with Pacific Premier in August 2025 [11][12] - The bank's NII rose to approximately $1.38 billion in the first nine months of 2025, a 7.8% year-over-year increase, supported by higher customer-related fee income [13] - Columbia raised its quarterly dividend by 2.8% to 37 cents per share, currently yielding 5.17%, with a payout ratio of 48% [15] Group 4: Truist Financial Corp. (TFC) - Truist Financial operates a wide range of services and anticipates a sequential NII increase of approximately 2% in the fourth quarter, driven by higher client deposits and lower deposit costs [16][19] - The company is refining its business mix and investing in digital capabilities to support long-term growth while maintaining a liquidity position with total debt of $71.1 billion [17][18] - Truist's quarterly dividend remains at 52 cents per share, yielding 4.12%, with a payout ratio of 56% [19][20]

Industry Overview - This year has been favorable for bank stocks following a recovery from a dip in April due to tariff plans, with markets reaching record highs supported by the Federal Reserve's interest rate cuts of 75 basis points [1] - The Federal Reserve is expected to implement another rate cut in 2026, which is anticipated to enhance banks' net interest income (NII) as funding costs stabilize and loan demand improves [1] Technological Advancements - Banks are increasingly focusing on artificial intelligence (AI) and technology to improve client experiences and expand their online presence, aiming to capture the growing mobile banking demographic [2] - Strategic buyouts and collaborations are expected to deepen global presence and diversify revenue streams, further bolstering fee income for banking firms [2] Economic Factors - Stronger-than-expected GDP growth and robust consumer spending have renewed investor optimism, making dividend stocks an attractive option for stable income and growth [3] - Dividend-heavy bank stocks such as Truist Financial Corporation, Columbia Banking System, and Norwood Financial Corporation are highlighted as potential steady income generators [3] Bank Performance and Dividends - Norwood Financial has a dividend yield of 4.18%, supported by consistent dividend increases and a conservative payout ratio [7] - Columbia Banking offers a 5.13% yield, bolstered by recent dividend hikes and solid capital returns [7] - Truist Financial provides a 4.12% yield, maintaining its quarterly dividend following the 2025 stress test [21] Company-Specific Insights - Norwood Financial's strategic growth initiatives include the acquisition of PB Bankshares, expected to enhance scale and create sustainable earnings growth opportunities [9] - Columbia Banking's relationship-based model and diversified deposit base support stable earnings, with NII rising to approximately $1.38 billion, up 7.8% year over year [14] - Truist Financial is refining its business mix to support long-term growth, investing in digital capabilities while divesting non-core businesses to enhance operational efficiency [19]

Core Insights - U.S. markets are experiencing an upswing, leading investors to seek opportunities in bank stocks, which have shown positive performance after a dip in April due to tariff plans [1] - The optimism in the banking sector is attributed to trade clarity and interest rate cuts by the Federal Reserve, although inflationary pressures and geopolitical uncertainties remain concerns [1] Bank Stocks with Dividend Increases - Investors are advised to focus on fundamentally solid banks that provide robust dividend yields, which can offer stability and income during volatile times [2] - Four bank stocks highlighted for their recent dividend hikes are ServisFirst Bancshares, Fulton Financial Corporation, First Financial Corporation, and Norwood Financial Corp, all of which have seen their stock prices rally over 3% in the past month [3][9] ServisFirst Bancshares, Inc. (SFBS) - Headquartered in Birmingham, AL, SFBS has $17.6 billion in assets as of September 30, 2025 [7] - Announced a quarterly cash dividend of 38 cents per share, a 13.4% increase from the previous payout, with a dividend yield of 1.84% and a payout ratio of 28% [8] - Zacks Consensus Estimate for 2025 sales indicates a 16.2% year-over-year rise, with earnings expected to grow by 21.8% [12] Fulton Financial Corporation (FULT) - Based in Lancaster, PA, FULT has $32 billion in assets and operates 200 financial centers [13] - Announced a quarterly cash dividend of 19 cents per share, a 5.6% increase, with a dividend yield of 3.57% and a payout ratio of 34% [14] - Zacks Consensus Estimate for 2025 sales suggests an 8.5% increase, while earnings are expected to grow by 11.9% [17] First Financial Corporation (THFF) - Operates in Indiana, Illinois, Kentucky, Tennessee, and Georgia with $5.7 billion in assets [18] - Announced a quarterly cash dividend of 56 cents per share, a 9.8% increase, with a dividend yield of 3.19% and a payout ratio of 33% [19] - Zacks Consensus Estimate for 2025 sales indicates an 18.5% rise, with earnings expected to surge by 64.8% [22] Norwood Financial Corp. (NWFL) - Offers a variety of financial services with $2.4 billion in assets as of September 30, 2025 [23] - Announced a quarterly cash dividend of 32 cents per share, a 3.1% increase, with a dividend yield of 4.18% and a payout ratio of 47% [24] - Zacks Consensus Estimate for 2025 sales indicates a 23.1% rise, while earnings are expected to jump by 60.1% [27] Conclusion on Dividend Stocks - Investing in dividend stocks is seen as a prudent strategy for generating steady income and providing a buffer against market risks, although careful selection is necessary to ensure consistent returns [26]

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Core Viewpoint - Norwood Financial Corp has received final regulatory approvals for the acquisition of PB Bankshares, with the transaction expected to close around January 5, 2026 [1][2]. Group 1: Company Overview - Norwood Financial Corp is the parent company of Wayne Bank, operating 15 offices in Northeastern Pennsylvania and 12 in the Southern Tier of New York, with its stock traded on the Nasdaq Global Market under the symbol "NWFL" [3]. - PB Bankshares is the parent company of Presence Bank, which operates four offices and two loan production offices in Chester, Lancaster, and Dauphin Counties, Pennsylvania, with its common stock traded on the NASDAQ Capital Market under the symbol "PBBK" [4]. Group 2: Merger Details - The merger was approved by PB Bankshares' shareholders on December 11, 2025, and is subject to customary closing conditions [1]. - The merger aims to expand products and services offered to the communities served by both banks, enhancing value for customers and shareholders [2].

Core Viewpoint - Norwood Financial Corp. (NWFL) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on the Zacks Consensus Estimate, which aggregates EPS estimates from sell-side analysts for the current and following years [2]. - The upgrade reflects an improvement in Norwood Financial's earnings outlook, likely leading to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimate Revisions - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors often adjust their valuations based on earnings estimates, which can lead to significant stock price changes due to their bulk investment actions [5]. Recent Performance of Norwood Financial - For the fiscal year ending December 2025, Norwood Financial is expected to earn $3.09 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 15.3% over the past three months [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Norwood Financial to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11].

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Group 1: Company Earnings Estimates - Norwood Financial Corp. (NWFL) has seen a 16.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Kennametal Inc. (KMT) has experienced a 25% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Topgolf Callaway Brands Corp. (MODG) has seen a nearly 59% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Interface, Inc. (TILE) has experienced an 8.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Universal Health Services, Inc. (UHS) has seen a 6.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Financial Performance - For the three months ended September 30, 2025, net income increased to $8.3 million, up from $3.8 million in the same period of 2024, representing a significant growth [153]. - Net income for the three months ended September 30, 2025, was $8.334 million, an increase of $4.490 million from $3.844 million for the same period in 2024 [154]. - For the nine months ended September 30, 2025, net income was $20.3 million, up from $12.5 million in the same period in 2024, primarily due to an $11.8 million increase in net interest income [168]. - Earnings per share for the three months ended September 30, 2025, were $0.89, compared to $0.48 for the same period in 2024 [153]. - Earnings per share for the nine months ended September 30, 2025, were $2.22, compared to $1.55 for the same period in 2024 [168]. Loans and Credit Quality - Loans receivable totaled $1.795 billion at September 30, 2025, reflecting a $101.0 million increase driven by growth in commercial real estate loans, commercial loans, consumer loans, construction loans, and residential loans [128]. - The allowance for credit losses was $19.9 million, representing 1.10% of total loans outstanding, compared to $19.8 million or 1.16% at December 31, 2024 [129]. - Non-performing loans decreased to $6.6 million or 0.36% of total loans as of September 30, 2025, down from $7.9 million or 0.46% at December 31, 2024 [130]. - The provision for credit losses was a release of $502,000 for the three months ended September 30, 2025, compared to a provision of $1.3 million in the same period in 2024 [159]. - The allowance for credit losses related to loans receivable was 1.10% of loans receivable as of September 30, 2025, compared to 1.12% at the same date in 2024 [159]. Deposits and Liquidity - Total deposits increased by $214.8 million during the nine months ended September 30, 2025, driven by increases in interest-bearing demand deposits, certificates of deposit, and other deposit categories [132]. - The Company had no short-term borrowings as of September 30, 2025, a decrease from $113.1 million at December 31, 2024, due to growth in deposits [133]. - Total liquidity as of September 30, 2025, was $216.4 million, representing 8.97% of total assets, an increase from $161.5 million and 6.97% of total assets as of December 31, 2024 [143]. - The Company had cash and cash equivalents of $74.7 million as of September 30, 2025 [143]. - Total interest-bearing liabilities decreased by $822,000 during the three months ended September 30, 2025, reflecting a net change in interest-bearing demand and money market accounts [154]. Interest Income and Expenses - Net interest income rose by $4.5 million, contributing to the overall increase in net income [153]. - Net interest income for the three months ended September 30, 2025, totaled $20.7 million, up $4.5 million from $16.2 million in the comparable period in 2024, with a net interest margin of 3.63% compared to 2.99% in 2024 [155][156]. - Interest income totaled $94.1 million with a yield on average earning assets of 5.61%, compared to $83.7 million and 5.20% for the same period in 2024 [171]. - Interest expense decreased to $11.7 million for the three months ended September 30, 2025, down from $12.6 million in 2024, reflecting lower market interest rates [157]. Capital and Equity - Total stockholders' equity rose to $234.9 million as of September 30, 2025, an increase of $20.3 million due to net income and an increase in the fair value of securities [137]. - Tier 1 Capital to average assets ratio improved to 9.62% as of September 30, 2025, compared to 9.36% at December 31, 2024 [139]. - The Company maintained compliance with all applicable regulatory capital requirements as of September 30, 2025 [142]. - Total capital ratio to risk-weighted assets was 13.33% as of September 30, 2025, down from 13.45% as of December 31, 2024 [139]. Other Income and Expenses - Other income increased to $2.5 million for the three months ended September 30, 2025, compared to $2.3 million in 2024, primarily due to a $143,000 increase in service charges and fees [160]. - Total expenses for the three months ended September 30, 2025, were $12.9 million, an increase of $903,000 from the same period in 2024, driven by higher salaries and professional fees [161]. - Income tax expense for the three months ended September 30, 2025, was $2.2 million, with an effective tax rate of 20.9%, compared to $1.0 million and 20.6% in 2024 [162]. - Other income increased to $7.1 million for the nine months ended September 30, 2025, up from $6.5 million in 2024, primarily due to higher service charges and fees [174]. - Other expenses totaled $37.5 million for the nine months ended September 30, 2025, an increase of $2.3 million or 6.60% compared to the same period in 2024 [175].

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