Norwood Financial Corp reported a net loss for Q4 2024, amid increased net interest income and loan growth.
Quiver AI Summary
Norwood Financial Corp, the parent company of Wayne Bank, reported its financial results for the fourth quarter and fiscal year ending December 31, 2024. Despite facing a significant one-time loss of $20 million from securities repositioning, the company demonstrated positive growth in net interest income, which increased year-over-year. The net interest margin rose to 3.04% for the fourth quarter, an increase from 2.93% a year earlier, aided by improved yields on assets. The annualized loan growth rate for the fourth quarter was 9%, and overall capital continued to strengthen following a capital raise aimed at enhancing the investment portfolio's yield. However, the company reported a net loss of $12.7 million for the fourth quarter and a slight net loss of $160,000 for the full year, contrasting with a net income of $16.8 million in 2023. Total assets as of December 31, 2024, stood at $2.317 billion compared to $2.201 billion the previous year.
Potential Positives
- Net interest margin increased by 11 basis points year-over-year, indicating improved efficiency in earning interest relative to interest-bearing liabilities.
- Loans grew at an annualized rate of 9% during the fourth quarter, showcasing strong lending capabilities and potential for future revenue growth.
- The successful capital raise is expected to strengthen the company’s financial position and enable better yield on the investment portfolio, enhancing future performance.
- Tangible common equity increased to 8.05% from 6.98%, indicating a stronger capital base and improved financial health.
Potential Negatives
- Norwood Financial Corp reported a net loss of $12.7 million for the fourth quarter and a net loss of $160 thousand for the fiscal year 2024, a significant decrease from the prior year's net income of $16.8 million.
- The company incurred a one-time loss of $20 million due to the sale of securities, which negatively impacted overall financial results and raises questions about the effectiveness of its investment strategy.
- Return on average assets and return on average tangible equity were markedly negative at -2.19% and -30.77%, respectively, indicating poor operational efficiency and profitability for the quarter.
FAQ
What were the key financial highlights for Norwood Financial Corp in Q4 2024?
The company reported a net interest margin increase of 11 basis points year-over-year and 9% annual loan growth.
How did the recent capital raise affect Norwood Financial Corp?
The capital raise repositioned the investment portfolio, improving yield despite a one-time $20 million loss during the fourth quarter.
What is Norwood Financial's net income for the fiscal year 2024?
For fiscal year 2024, Norwood Financial reported a net loss of $160,000 compared to a net income of $16.8 million in 2023.
How did interest expenses change for Norwood Financial in 2024?
Interest expenses rose to $50.4 million in 2024, up from $33.5 million in 2023, mainly due to higher deposit costs.
What is the return on tangible equity for Norwood Financial in the latest report?
The return on tangible equity was -30.77% for Q4 2024, down significantly from 1.01% in the previous year.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$NWFL Insider Trading Activity
$NWFL insiders have traded $NWFL stock on the open market 13 times in the past 6 months. Of those trades, 13 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $NWFL stock by insiders over the last 6 months:
- RONALD R SCHMALZLE has made 2 purchases buying 15,092 shares for an estimated $399,792 and 0 sales.
- JOHN MARTIN JR MCCAFFERY (EVP & CFO) has made 11 purchases buying 2,000 shares for an estimated $51,665 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$NWFL Hedge Fund Activity
We have seen 32 institutional investors add shares of $NWFL stock to their portfolio, and 16 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- GOLDMAN SACHS GROUP INC added 18,303 shares (+inf%) to their portfolio in Q3 2024, for an estimated $504,796
- INVESCO LTD. removed 13,971 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $385,320
- BLACKROCK, INC. added 13,942 shares (+2.5%) to their portfolio in Q3 2024, for an estimated $384,520
- CITADEL ADVISORS LLC added 12,857 shares (+inf%) to their portfolio in Q3 2024, for an estimated $354,596
- MORGAN STANLEY added 12,160 shares (+71.3%) to their portfolio in Q3 2024, for an estimated $335,372
- JPMORGAN CHASE & CO added 9,950 shares (+250.5%) to their portfolio in Q3 2024, for an estimated $274,421
- SIGNATURE ESTATE & INVESTMENT ADVISORS LLC added 7,268 shares (+inf%) to their portfolio in Q3 2024, for an estimated $200,451
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Quarterly Highlights:
- Net interest margin increased 5 basis points vs. the prior quarter and 11 basis points over the prior year.
- Loans grew at an 9% annualized rate during the fourth quarter.
- Completed capital raise that supports our long-term strategy and repositions our investment portfolio to improve our yield on the portfolio.
- Capital continues to improve due to recent equity offering and lower AOCI adjustment.
HONESDALE, Pa., Jan. 27, 2025 (GLOBE NEWSWIRE) -- Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced results for the three months and fiscal year ended December 31, 2024.
Jim Donnelly, President and Chief Executive Officer of Norwood Financial Corp and Wayne Bank, stated, “During the fourth quarter, we successfully completed a capital raise that enabled us to reposition our investment portfolio for improved yields on the portfolio in future periods. While we incurred a one-time $20 million loss as a result of this repositioning, we believe the portfolio is better positioned for the current and future interest rate environment. Excluding this loss, we performed well during the fourth quarter, delivering higher net interest income year-over-year for both the fourth quarter and the full year. As a result of these actions, we believe the Company is financially stronger and better protected from changes in interest rates and will enhance our future performance.”
Selected Financial Highlights
(dollars in thousands, except per share data)
|
Three Months Ended | Twelve Months Ended | ||||||||||
December 31, 2024 | December 31, 2024 | |||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
Net interest income | 16,625 | 15,293 | 1,332 | 62,191 | 62,067 | 124 | ||||||
Net interest spread (fte) | 2.31% | 2.23% | 8 bps | 2.17% | 2.47% | (30 bps | ) | |||||
Net interest margin (fte) | 3.04% | 2.93% | 11 bps | 2.91% | 3.06% | (15 bps | ) | |||||
Net income (loss) | (12,651 | ) | 355 | (13,006 | ) | (160 | ) | 16,759 | (16,919 | ) | ||
Diluted earnings per share | (1.54 | ) | 0.04 | (1.41 | ) | (0.02 | ) | 2.07 | (2.09 | ) | ||
Return on average assets | (2.19% | ) | 0.06% | (225 bps | ) | -0.01% | 0.79% | (80 bps | ) | |||
Return on tangible equity | (30.77% | ) | 1.01% | (3,178 bps | ) | (0.10% | ) | 11.66% | (1,167 bps | ) | ||
Discussion of financial results for the three months ended December 31, 2024:
|
||||||||||||
The following non-GAAP financial measures exclude the one-time $20.0 million net realized loss incurred in the fourth quarter as a result of the repositioning of our investment portfolio. Please see “Non-GAAP Financial Measures” below for a reconciliation of all non-GAAP financial measures. | ||||||||||||
(dollars in thousands, except per share data)
|
Three Months Ended | Twelve Months Ended | ||||||||||
December 31, 2024 | December 31, 2024 | |||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
Adjusted net income | 3,119 | 355 | 2,764 | 15,610 | 16,759 | (1,149 | ) | |||||
Adjusted diluted earnings per share | 0.38 | 0.04 | 0.34 | 1.93 | 2.07 | (0.14 | ) | |||||
Adjusted return on average assets | 0.54% | 0.06% | 48 bps | 0.69% | 0.79% | (10 bps | ) | |||||
Adjusted return on tangible equity | 7.59% | 1.01% | 654 bps | 9.97% | 11.66% | (169 bps | ) |
Norwood Financial Corp is the parent company of Wayne Bank, which operates from 16 offices throughout Northeastern Pennsylvania and 14 offices in 4 Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. The Company’s stock trades on the Nasdaq Global Market under the symbol “NWFL”.
Non-GAAP Financial Measures
This release references adjusted net income, adjusted diluted earnings per share, adjusted return on average assets and adjusted return on tangible equity, all of which are non-GAAP (Generally Accepted Accounting Principles) financial measures. Adjusted values were derived by reversing the effect of loss on sale of securities in 2024 along with the attendant tax effect. We believe the presentation of adjusted net income, adjusted diluted earnings per share, adjusted return on average assets and adjusted return on tangible equity ensures comparability of these measures as the portfolio restructuring is not something the Company expects to be a recurring event.
Adjusted Return on Average Assets | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net (loss) income | $ | (12,651 | ) | $ | 355 | $ | (160 | ) | $ | 16,759 | ||||||
Average assets | 2,299,732 | 2,166,821 | 2,250,171 | 2,128,570 | ||||||||||||
Return on average assets (annualized) | -2.19 | % | 0.06 | % | -0.01 | % | 0.79 | % | ||||||||
Net (loss) income | (12,651 | ) | 355 | (160 | ) | 16,759 | ||||||||||
Net realized losses on sale of securities | 19,962 | 0 | 19,962 | 0 | ||||||||||||
Tax effect at 21% | (4,192 | ) | 0 | (4,192 | ) | 0 | ||||||||||
Adjusted Net Income (Non-GAAP) | 3,119 | 355 | 15,610 | 16,759 | ||||||||||||
Average assets | 2,299,732 | 2,166,821 | 2,250,171 | 2,128,570 | ||||||||||||
Adjusted return on average assets (annualized) | ||||||||||||||||
(Non-GAAP) | 0.54 | % | 0.06 | % | 0.69 | % | 0.79 | % | ||||||||
Adjusted Return on Average Tangible Shareholders' Equity | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net (loss) income | $ | (12,651 | ) | $ | 355 | $ | (160 | ) | $ | 16,759 | ||||||
Average shareholders' equity | 192,981 | 168,317 | 185,952 | 173,273 | ||||||||||||
Average intangible assets | 29,424 | 29,495 | 29,449 | 29,526 | ||||||||||||
Average tangible shareholders' equity | 163,557 | 138,822 | 156,503 | 143,747 | ||||||||||||
Return on average tangible shareholders' equity (annualized) | -30.77 | % | 1.01 | % | -0.10 | % | 11.66 | % | ||||||||
Net (loss) income | (12,651 | ) | 355 | (160 | ) | 16,759 | ||||||||||
Net realized losses on sale of securities | 19,962 | 0 | 19,962 | 0 | ||||||||||||
Tax effect at 21% | (4,192 | ) | 0 | (4,192 | ) | 0 | ||||||||||
Adjusted Net Income (Non-GAAP) | 3,119 | 355 | 15,610 | 16,759 | ||||||||||||
Average tangible shareholders' equity | 163,557 | 138,822 | 156,503 | 143,747 | ||||||||||||
Adjusted return on average shareholders' equity (annualized) | ||||||||||||||||
(Non-GAAP) | 7.59 | % | 1.01 | % | 9.97 | % | 11.66 | % | ||||||||
Adjusted Earnings Per Share | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
GAAP-Based Earnings Per Share, Basic | $ | (1.54 | ) | $ | 0.04 | $ | (0.02 | ) | $ | 2.08 | ||||||
GAAP-Based Earnings Per Share, Diluted | $ | (1.54 | ) | $ | 0.04 | $ | (0.02 | ) | $ | 2.07 | ||||||
Net (Loss) Income | (12,651 | ) | 355 | (160 | ) | 16,759 | ||||||||||
Net realized losses on sale of securities | 19,962 | 0 | 19,962 | 0 | ||||||||||||
Tax effect at 21% | (4,192 | ) | 0 | (4,192 | ) | 0 | ||||||||||
Adjusted Net Income (Non-GAAP) | 3,119 | 355 | 15,610 | 16,759 | ||||||||||||
Adjusted Earnings per Share, Basic (Non-GAAP) | $ | 0.38 | $ | 0.04 | $ | 1.93 | $ | 2.08 | ||||||||
Adjusted Earnings per Share, Diluted (Non-GAAP) | $ | 0.38 | $ | 0.04 | $ | 1.93 | $ | 2.07 |
The following table reconciles average equity to average tangible equity:
Tangible Book Value | |||||||
(Dollars in thousands) | |||||||
December 31, | |||||||
2024 | 2023 | ||||||
Total shareholders' equity | 213,508 | 181,070 | |||||
Adjustments: | |||||||
Goodwill | (29,266 | ) | (29,266 | ) | |||
Other intangible assets | (152 | ) | (221 | ) | |||
Tangible common equity (Non-GAAP) | 184,090 | 151,583 | |||||
Common shares outstanding | 9,272,906 | 8,110,157 | |||||
Book value per common share | 23.02 | 22.33 | |||||
Tangible book value per common share (Non-GAAP) | 19.85 | 18.69 |
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words “believes”, “anticipates”, “contemplates”, “expects”, “bode”, “future performance” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Those risks and uncertainties include, among other things, changes in federal and state laws, changes in interest rates, our ability to maintain strong credit quality metrics, our ability to have future performance, our ability to control core operating expenses and costs, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contact: | John M. McCaffery |
Executive Vice President & | |
Chief Financial Officer | |
NORWOOD FINANCIAL CORP | |
272-304-3003 | |
www.waynebank.com |
NORWOOD FINANCIAL CORP | |||||||
Consolidated Balance Sheets | |||||||
(dollars in thousands, except share and per share data) | |||||||
(unaudited) | |||||||
December 31 | |||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 27,562 | $ | 28,533 | |||
Interest-bearing deposits with banks | 44,777 | 37,587 | |||||
Cash and cash equivalents | 72,339 | 66,120 | |||||
Securities available for sale | 397,846 | 406,259 | |||||
Loans receivable | 1,713,638 | 1,603,618 | |||||
Less: Allowance for credit losses | 19,843 | 18,968 | |||||
Net loans receivable | 1,693,795 | 1,584,650 | |||||
Regulatory stock, at cost | 13,366 | 7,318 | |||||
Bank premises and equipment, net | 19,657 | 17,838 | |||||
Bank owned life insurance | 46,657 | 46,439 | |||||
Foreclosed real estate owned | - | 97 | |||||
Accrued interest receivable | 8,466 | 8,123 | |||||
Deferred tax assets, net | 17,696 | 21,353 | |||||
Goodwill | 29,266 | 29,266 | |||||
Other intangible assets | 152 | 221 | |||||
Other assets | 18,222 | 13,395 | |||||
TOTAL ASSETS | $ | 2,317,462 | $ | 2,201,079 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Non-interest bearing demand | $ | 381,479 | $ | 399,545 | |||
Interest-bearing | 1,477,684 | 1,395,614 | |||||
Total deposits | 1,859,163 | 1,795,159 | |||||
Short-term borrowings | 113,069 | 74,076 | |||||
Other borrowings | 101,793 | 124,236 | |||||
Accrued interest payable | 12,615 | 10,510 | |||||
Other liabilities | 17,314 | 16,028 | |||||
TOTAL LIABILITIES | 2,103,954 | 2,020,009 | |||||
STOCKHOLDERS' EQUITY | |||||||
Preferred Stock, no par value per share, authorized 5,000,000 shares | - | - | |||||
Common Stock, $.10 par value per share, | |||||||
authorized: 20,000,000 shares, | |||||||
issued: 2024: 9,487,067 shares, 2023: 8,310,847 shares | 949 | 831 | |||||
Surplus | 98,513 | 97,700 | |||||
Retained earnings | 152,964 | 135,284 | |||||
Treasury stock, at cost: 2024: 214,161 shares, 2023: 200,690 shares | (5,797 | ) | (5,397 | ) | |||
Accumulated other comprehensive loss | (33,121 | ) | (47,348 | ) | |||
TOTAL STOCKHOLDERS' EQUITY | 213,508 | 181,070 | |||||
TOTAL LIABILITIES AND | |||||||
STOCKHOLDERS' EQUITY | $ | 2,317,462 | $ | 2,201,079 | |||
NORWOOD FINANCIAL CORP | |||||||||||||||||
Consolidated Statements of Income | |||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
INTEREST INCOME | |||||||||||||||||
Loans receivable, including fees | $ | 26,122 | $ | 23,328 | $ | 99,388 | $ | 85,209 | |||||||||
Securities | 2,789 | 2,504 | 10,424 | 9,922 | |||||||||||||
Other | 574 | 253 | 2,768 | 409 | |||||||||||||
Total Interest income | 29,485 | 26,085 | 112,580 | 95,540 | |||||||||||||
INTEREST EXPENSE | |||||||||||||||||
Deposits | 10,984 | 8,910 | 42,334 | 26,029 | |||||||||||||
Short-term borrowings | 348 | 346 | 1,363 | 3,048 | |||||||||||||
Other borrowings | 1,528 | 1,536 | 6,692 | 4,396 | |||||||||||||
Total Interest expense | 12,860 | 10,792 | 50,389 | 33,473 | |||||||||||||
NET INTEREST INCOME | 16,625 | 15,293 | 62,191 | 62,067 | |||||||||||||
PROVISION FOR CREDIT LOSSES | $ | 1,604 | $ | 6,116 | $ | 2,673 | $ | 5,548 | |||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 15,021 | 9,177 | 59,518 | 56,519 | |||||||||||||
OTHER INCOME | |||||||||||||||||
Service charges and fees | 1,595 | 1,421 | 5,959 | 5,613 | |||||||||||||
Income from fiduciary activities | 224 | 210 | 943 | 898 | |||||||||||||
Net realized (losses) gains on sales of securities | (19,962 | ) | - | (19,962 | ) | (209 | ) | ||||||||||
Gains on sales of loans, net | 50 | 36 | 195 | 63 | |||||||||||||
Gains on sales of foreclosed real estate owned | - | 66 | 32 | 80 | |||||||||||||
Earnings and proceeds on life insurance policies | 275 | 242 | 1,056 | 1,012 | |||||||||||||
Other | 159 | 148 | 626 | 667 | |||||||||||||
Total other income | (17,659 | ) | 2,123 | (11,151 | ) | 8,124 | |||||||||||
OTHER EXPENSES | |||||||||||||||||
Salaries and employee benefits | 6,690 | 5,672 | 25,018 | 23,565 | |||||||||||||
Occupancy, furniture and equipment | 1,291 | 1,265 | 5,049 | 5,083 | |||||||||||||
Data processing and related operations | 1,312 | 877 | 4,520 | 3,342 | |||||||||||||
Taxes, other than income | 163 | 77 | 615 | 566 | |||||||||||||
Professional fees | 504 | 544 | 2,173 | 1,676 | |||||||||||||
FDIC Insurance assessment | 335 | 287 | 1,344 | 985 | |||||||||||||
Foreclosed real estate | 9 | 17 | 54 | 129 | |||||||||||||
Amortization of intangibles | 15 | 19 | 69 | 85 | |||||||||||||
Other | 3,100 | 2,091 | 9,783 | 8,066 | |||||||||||||
Total other expenses | 13,419 | 10,849 | 48,625 | 43,497 | |||||||||||||
INCOME BEFORE TAX (BENEFIT) EXPENSE | (16,057 | ) | 451 | (258 | ) | 21,146 | |||||||||||
INCOME TAX (BENEFIT) EXPENSE | (3,406 | ) | 96 | (98 | ) | 4,387 | |||||||||||
NET (LOSS) INCOME | $ | (12,651 | ) | $ | 355 | $ | (160 | ) | $ | 16,759 | |||||||
Basic (loss) earnings per share | $ | (1.54 | ) | $ | 0.04 | $ | (0.02 | ) | $ | 2.08 | |||||||
Diluted (loss) earnings per share | $ | (1.54 | ) | $ | 0.04 | $ | (0.02 | ) | $ | 2.07 | |||||||
NORWOOD FINANCIAL CORP | ||||||||||||||||||||||||
NET INTEREST MARGIN ANALYSIS | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||||||
December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
(2) | (1) | (3) | (2) | (1) | (3) | (2) | (1) | (3) | ||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Interest-bearing deposits with banks | $ | 46,629 | $ | 574 | 4.90 | % | $ | 36,221 | $ | 497 | 5.46 | % | $ | 18,282 | $ | 253 | 5.49 | % | ||||||
Securities available for sale: | ||||||||||||||||||||||||
Taxable | 404,777 | 2,434 | 2.39 | 392,168 | 2,161 | 2.19 | 403,044 | 2,126 | 2.09 | |||||||||||||||
Tax-exempt (1) | 65,628 | 449 | 2.72 | 67,563 | 461 | 2.71 | 70,049 | 479 | 2.71 | |||||||||||||||
Total securities available for sale (1) | 470,405 | 2,883 | 2.44 | 459,731 | 2,622 | 2.27 | 473,093 | 2,605 | 2.18 | |||||||||||||||
Loans receivable (1) (4) (5) | 1,690,650 | 26,246 | 6.18 | 1,651,921 | 25,575 | 6.16 | 1,605,496 | 23,422 | 5.79 | |||||||||||||||
Total interest-earning assets | 2,207,684 | 29,703 | 5.35 | 2,147,873 | 28,694 | 5.31 | 2,096,871 | 26,280 | 4.97 | |||||||||||||||
Non-interest earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 27,283 | 28,193 | 27,791 | |||||||||||||||||||||
Allowance for credit losses | (18,741 | ) | (17,944 | ) | (16,728 | ) | ||||||||||||||||||
Other assets | 83,506 | 78,344 | 58,231 | |||||||||||||||||||||
Total non-interest earning assets | 92,048 | 88,593 | 69,294 | |||||||||||||||||||||
Total Assets | $ | 2,299,732 | $ | 2,236,466 | $ | 2,166,165 | ||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing demand and money market | $ | 528,330 | $ | 3,017 | 2.27 | $ | 461,897 | $ | 2,782 | 2.40 | $ | 463,792 | $ | 2,059 | 1.76 | |||||||||
Savings | 209,362 | 162 | 0.31 | 221,366 | 13 | 0.02 | 226,809 | 119 | 0.21 | |||||||||||||||
Time | 764,819 | 7,805 | 4.06 | 734,235 | 7,758 | 4.20 | 679,587 | 6,732 | 3.93 | |||||||||||||||
Total interest-bearing deposits | 1,502,511 | 10,984 | 2.91 | 1,417,498 | 10,553 | 2.96 | 1,370,188 | 8,910 | 2.58 | |||||||||||||||
Short-term borrowings | 46,267 | 348 | 2.99 | 53,622 | 323 | 2.40 | 59,836 | 346 | 2.29 | |||||||||||||||
Other borrowings | 133,620 | 1,528 | 4.55 | 146,357 | 1,680 | 4.57 | 131,071 | 1,536 | 4.65 | |||||||||||||||
Total interest-bearing liabilities | 1,682,398 | 12,860 | 3.04 | 1,617,477 | 12,556 | 3.09 | 1,561,095 | 10,792 | 2.74 | |||||||||||||||
Non-interest bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 394,001 | 400,314 | 411,434 | |||||||||||||||||||||
Other liabilities | 30,352 | 29,540 | 25,316 | |||||||||||||||||||||
Total non-interest bearing liabilities | 424,353 | 429,854 | 436,750 | |||||||||||||||||||||
Stockholders' equity | 192,981 | 189,135 | 168,320 | |||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 2,299,732 | $ | 2,236,466 | $ | 2,166,165 | ||||||||||||||||||
Net interest income/spread (tax equivalent basis) | 16,843 | 2.31 | % | 16,138 | 2.23 | % | 15,488 | 2.23 | % | |||||||||||||||
Tax-equivalent basis adjustment | (218 | ) | (207 | ) | (195 | ) | ||||||||||||||||||
Net interest income | $ | 16,625 | $ | 15,931 | $ | 15,293 | ||||||||||||||||||
Net interest margin (tax equivalent basis) | 3.04 | % | 2.99 | % | 2.93 | % | ||||||||||||||||||
(1) Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%. | ||||||||||||||||||||||||
(2) Average balances have been calculated based on daily balances. | ||||||||||||||||||||||||
(3) Annualized | ||||||||||||||||||||||||
(4) Loan balances include non-accrual loans and are net of unearned income. | ||||||||||||||||||||||||
(5) Loan yields include the effect of amortization of deferred fees, net of costs. | ||||||||||||||||||||||||
Year to Date | ||||||||||||||||||||||||
December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
(2) | (1) | (3) | (2) | (1) | (3) | (2) | (1) | (3) | ||||||||||||||||
Assets | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Interest-bearing deposits with banks | $ | 51,433 | $ | 2,768 | 5.38 | % | $ | 53,046 | $ | 2,194 | 5.52 | % | $ | 7,537 | $ | 409 | 5.43 | % | ||||||
Securities available for sale: | ||||||||||||||||||||||||
Taxable | 400,050 | 8,948 | 2.24 | 398,462 | 6,514 | 2.18 | 411,633 | 8,390 | 2.04 | |||||||||||||||
Tax-exempt (1) | 68,041 | 1,868 | 2.75 | 68,852 | 1,419 | 2.75 | 70,598 | 1,940 | 2.75 | |||||||||||||||
Total securities available for sale (1) | 468,091 | 10,816 | 2.31 | 467,314 | 7,933 | 2.27 | 482,231 | 10,330 | 2.14 | |||||||||||||||
Loans receivable (1) (4) (5) | 1,646,128 | 99,815 | 6.06 | 1,631,179 | 73,569 | 6.02 | 1,565,665 | 85,550 | 5.46 | |||||||||||||||
Total interest-earning assets | 2,165,652 | 113,399 | 5.24 | 2,151,539 | 83,696 | 5.20 | 2,055,433 | 96,289 | 4.68 | |||||||||||||||
Non-interest earning assets: | ||||||||||||||||||||||||
Cash and due from banks | 26,629 | 26,409 | 26,633 | |||||||||||||||||||||
Allowance for credit losses | (18,450 | ) | (18,353 | ) | (18,122 | ) | ||||||||||||||||||
Other assets | 76,340 | 73,935 | 64,626 | |||||||||||||||||||||
Total non-interest earning assets | 84,519 | 81,991 | 73,137 | |||||||||||||||||||||
Total Assets | $ | 2,250,171 | $ | 2,233,530 | $ | 2,128,570 | ||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing demand and money market | $ | 476,106 | $ | 10,506 | 2.21 | $ | 460,579 | $ | 7,489 | 2.17 | $ | 466,329 | $ | 5,824 | 1.25 | |||||||||
Savings | 220,190 | 711 | 0.32 | 223,825 | 549 | 0.33 | 248,629 | 378 | 0.15 | |||||||||||||||
Time | 744,895 | 31,117 | 4.18 | 738,205 | 23,311 | 4.22 | 610,726 | 19,827 | 3.25 | |||||||||||||||
Total interest-bearing deposits | 1,441,191 | 42,334 | 2.94 | 1,422,609 | 31,349 | 2.94 | 1,325,684 | 26,029 | 1.96 | |||||||||||||||
Short-term borrowings | 54,867 | 1,363 | 2.48 | 57,754 | 1,015 | 2.35 | 93,455 | 3,048 | 3.26 | |||||||||||||||
Other borrowings | 146,195 | 6,692 | 4.58 | 150,418 | 5,165 | 4.59 | 94,931 | 4,396 | 4.63 | |||||||||||||||
Total interest-bearing liabilities | 1,642,253 | 50,389 | 3.07 | 1,630,781 | 37,529 | 3.07 | 1,514,070 | 33,473 | 2.21 | |||||||||||||||
Non-interest bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 393,616 | 391,479 | 418,631 | |||||||||||||||||||||
Other liabilities | 28,350 | 27,677 | 22,595 | |||||||||||||||||||||
Total non-interest bearing liabilities | 421,966 | 419,156 | 441,226 | |||||||||||||||||||||
Stockholders' equity | 185,952 | 183,593 | 173,274 | |||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 2,250,171 | $ | 2,233,530 | $ | 2,128,570 | ||||||||||||||||||
Net interest income/spread (tax equivalent basis) | 63,010 | 2.17 | % | 46,167 | 2.12 | % | 62,816 | 2.47 | % | |||||||||||||||
Tax-equivalent basis adjustment | (819 | ) | (601 | ) | (749 | ) | ||||||||||||||||||
Net interest income | $ | 62,191 | $ | 45,566 | $ | 62,067 | ||||||||||||||||||
Net interest margin (tax equivalent basis) | 2.91 | % | 2.87 | % | 3.06 | % | ||||||||||||||||||
(1) Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%. | ||||||||||||||||||||||||
(2) Average balances have been calculated based on daily balances. | ||||||||||||||||||||||||
(3) Annualized | ||||||||||||||||||||||||
(4) Loan balances include non-accrual loans and are net of unearned income. | ||||||||||||||||||||||||
(5) Loan yields include the effect of amortization of deferred fees, net of costs. |
NORWOOD FINANCIAL CORP | |||||||
Financial Highlights (Unaudited) | |||||||
(dollars in thousands, except per share data) | |||||||
For the Three Months Ended December 31 | 2024 | 2023 | |||||
Net interest income | $ | 16,625 | $ | 15,293 | |||
Net (loss) income | (12,651 | ) | 355 | ||||
Net interest spread (fully taxable equivalent) | 2.31 % | 2.23% | |||||
Net interest margin (fully taxable equivalent) | 3.04 % | 2.93% | |||||
Return on average assets | -2.19% | 0.06% | |||||
Return on average equity | -26.08% | 0.84% | |||||
Return on average tangible equity | -30.77% | 1.01% | |||||
Basic (loss) earnings per share | $ | (1.54 | ) | $ | 0.04 | ||
Diluted (loss) earnings per share | $ | (1.54 | ) | $ | 0.04 | ||
For the Twelve Months Ended December 31 | 2024 | 2023 | |||||
Net interest income | $ | 62,191 | $ | 62,067 | |||
Net (loss) income | (160 | ) | 16,759 | ||||
Net interest spread (fully taxable equivalent) | 2.17 % | 2.47% | |||||
Net interest margin (fully taxable equivalent) | 2.91 % | 3.06% | |||||
Return on average assets | -0.01% | 0.79% | |||||
Return on average equity | -0.09% | 9.67% | |||||
Return on average tangible equity | -0.10% | 11.66% | |||||
Basic (loss) earnings per share | $ | (0.02 | ) | $ | 2.08 | ||
Diluted (loss) earnings per share | $ | (0.02 | ) | $ | 2.07 | ||
As of December 31 | 2024 | 2023 | |||||
Total assets | $ | 2,317,462 | $ | 2,201,079 | |||
Total loans receivable | 1,713,638 | 1,603,618 | |||||
Allowance for credit losses | 19,843 | 18,968 | |||||
Total deposits | 1,859,163 | 1,795,159 | |||||
Stockholders' equity | 213,508 | 181,070 | |||||
Trust assets under management | 205,097 | 192,374 | |||||
Book value per share | $ | 23.02 | $ | 22.33 | |||
Tangible book value per share | $ | 19.85 | $ | 18.69 | |||
Equity to total assets | 9.21 % | 8.23% | |||||
Allowance to total loans receivable | 1.16 % | 1.18% | |||||
Nonperforming loans to total loans | 0.46 % | 0.48% | |||||
Nonperforming assets to total assets | 0.34 % | 0.35% | |||||
NORWOOD FINANCIAL CORP | |||||||||||||||
Consolidated Balance Sheets (unaudited) | |||||||||||||||
(dollars in thousands) | |||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||
ASSETS | |||||||||||||||
Cash and due from banks | $ | 27,562 | $ | 47,072 | $ | 29,903 | $ | 19,519 | $ | 28,533 | |||||
Interest-bearing deposits with banks | 44,777 | 35,808 | 39,492 | 92,444 | 37,587 | ||||||||||
Cash and cash equivalents | 72,339 | 82,880 | 69,395 | 111,963 | 66,120 | ||||||||||
Securities available for sale | 397,846 | 396,891 | 397,578 | 398,374 | 406,259 | ||||||||||
Loans receivable | 1,713,638 | 1,675,139 | 1,641,356 | 1,621,448 | 1,603,618 | ||||||||||
Less: Allowance for credit losses | 19,843 | 18,699 | 17,807 | 18,020 | 18,968 | ||||||||||
Net loans receivable | 1,693,795 | 1,656,440 | 1,623,549 | 1,603,428 | 1,584,650 | ||||||||||
Regulatory stock, at cost | 13,366 | 6,329 | 6,443 | 6,545 | 7,318 | ||||||||||
Bank owned life insurance | 46,657 | 46,382 | 46,121 | 45,869 | 46,439 | ||||||||||
Bank premises and equipment, net | 19,657 | 18,503 | 18,264 | 18,057 | 17,838 | ||||||||||
Foreclosed real estate owned | 0 | 0 | 0 | 97 | 97 | ||||||||||
Goodwill and other intangibles | 29,418 | 29,433 | 29,449 | 29,468 | 29,487 | ||||||||||
Other assets | 44,384 | 42,893 | 44,517 | 46,622 | 42,871 | ||||||||||
TOTAL ASSETS | $ | 2,317,462 | $ | 2,279,751 | $ | 2,235,316 | $ | 2,260,423 | $ | 2,201,079 | |||||
LIABILITIES | |||||||||||||||
Deposits: | |||||||||||||||
Non-interest bearing demand | $ | 381,479 | $ | 420,967 | $ | 391,849 | $ | 383,362 | $ | 399,545 | |||||
Interest-bearing deposits | 1,477,684 | 1,434,284 | 1,419,323 | 1,455,636 | 1,395,614 | ||||||||||
Total deposits | 1,859,163 | 1,855,251 | 1,811,172 | 1,838,998 | 1,795,159 | ||||||||||
Borrowings | 214,862 | 197,412 | 210,422 | 211,234 | 198,312 | ||||||||||
Other liabilities | 29,929 | 31,434 | 31,534 | 28,978 | 26,538 | ||||||||||
TOTAL LIABILITIES | 2,103,954 | 2,084,097 | 2,053,128 | 2,079,210 | 2,020,009 | ||||||||||
STOCKHOLDERS' EQUITY | 213,508 | 195,654 | 182,188 | 181,213 | 181,070 | ||||||||||
TOTAL LIABILITIES AND | |||||||||||||||
STOCKHOLDERS' EQUITY | $ | 2,317,462 | $ | 2,279,751 | $ | 2,235,316 | $ | 2,260,423 | $ | 2,201,079 | |||||
NORWOOD FINANCIAL CORP | |||||||||||||||
Consolidated Statements of Income (unaudited) | |||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
Three months ended | 2024 | 2024 | 2024 | 2024 | 2023 | ||||||||||
INTEREST INCOME | |||||||||||||||
Loans receivable, including fees | $ | 26,122 | $ | 25,464 | $ | 24,121 | $ | 23,681 | $ | 23,328 | |||||
Securities | 2,789 | 2,526 | 2,584 | 2,526 | 2,504 | ||||||||||
Other | 574 | 497 | 966 | 731 | 253 | ||||||||||
Total interest income | 29,485 | 28,487 | 27,671 | 26,938 | 26,085 | ||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 10,984 | 10,553 | 10,687 | 10,110 | 8,910 | ||||||||||
Borrowings | 1,876 | 2,003 | 2,059 | 2,118 | 1,882 | ||||||||||
Total interest expense | 12,860 | 12,556 | 12,746 | 12,228 | 10,792 | ||||||||||
NET INTEREST INCOME | 16,625 | 15,931 | 14,925 | 14,710 | 15,293 | ||||||||||
PROVISION FOR (RELEASE OF) CREDIT LOSSES | 1,604 | 1,345 | 347 | (624 | ) | 6,116 | |||||||||
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION | |||||||||||||||
FOR CREDIT LOSSES | 15,021 | 14,586 | 14,578 | 15,334 | 9,177 | ||||||||||
OTHER INCOME | |||||||||||||||
Service charges and fees | 1,595 | 1,517 | 1,504 | 1,343 | 1,421 | ||||||||||
Income from fiduciary activities | 224 | 256 | 225 | 238 | 210 | ||||||||||
Net realized (losses) gains on sales of securities | (19,962 | ) | - | - | - | - | |||||||||
Gains on sales of loans, net | 50 | 103 | 36 | 6 | 36 | ||||||||||
Gains on sales of foreclosed real estate owned | - | - | 32 | - | 66 | ||||||||||
Earnings and proceeds on life insurance policies | 275 | 261 | 253 | 268 | 242 | ||||||||||
Other | 159 | 158 | 157 | 151 | 148 | ||||||||||
Total other income | (17,659 | ) | 2,295 | 2,207 | 2,006 | 2,123 | |||||||||
OTHER EXPENSES | |||||||||||||||
Salaries and employee benefits | 6,690 | 6,239 | 5,954 | 6,135 | 5,672 | ||||||||||
Occupancy, furniture and equipment, net | 1,291 | 1,269 | 1,229 | 1,261 | 1,265 | ||||||||||
Foreclosed real estate | 9 | 9 | 15 | 21 | 17 | ||||||||||
FDIC insurance assessment | 335 | 339 | 309 | 361 | 287 | ||||||||||
Other | 5,094 | 4,175 | 3,937 | 3,954 | 3,608 | ||||||||||
Total other expenses | 13,419 | 12,031 | 11,444 | 11,732 | 10,849 | ||||||||||
INCOME BEFORE TAX (BENEFIT) EXPENSE | (16,057 | ) | 4,850 | 5,341 | 5,608 | 451 | |||||||||
INCOME TAX (BENEFIT) EXPENSE | (3,406 | ) | 1,006 | 1,128 | 1,175 | 96 | |||||||||
NET (LOSS) INCOME | $ | (12,651 | ) | $ | 3,844 | $ | 4,213 | $ | 4,433 | $ | 355 | ||||
Basic (loss) earnings per share | $ | (1.54 | ) | $ | 0.48 | $ | 0.52 | $ | 0.55 | $ | 0.04 | ||||
Diluted (loss) earnings per share | $ | (1.54 | ) | $ | 0.48 | $ | 0.52 | $ | 0.55 | $ | 0.04 | ||||
Book Value per share | $ | 23.02 | $ | 24.92 | $ | 23.26 | $ | 23.01 | $ | 22.99 | |||||
Tangible Book Value per share | 19.85 | 21.28 | 19.62 | 19.38 | 19.36 | ||||||||||
Return on average assets (annualized) | -2.19 | % | 0.68% | 0.75% | 0.80% | 0.06% | |||||||||
Return on average equity (annualized) | -26.08 | % | 8.09% | 9.41% | 9.79% | 0.84% | |||||||||
Return on average tangible equity (annualized) | -30.77 | % | 9.58% | 11.26% | 11.68% | 1.01% | |||||||||
Net interest spread (fte) | 2.31% | 2.23% | 2.06% | 2.06% | 2.23% | ||||||||||
Net interest margin (fte) | 3.04% | 2.99% | 2.80% | 2.79% | 2.93% | ||||||||||
Allowance for credit losses to total loans | 1.16% | 1.12% | 1.08% | 1.11% | 1.18% | ||||||||||
Net charge-offs to average loans (annualized) | 0.12% | 0.08% | 0.13% | 0.08% | 0.79% | ||||||||||
Nonperforming loans to total loans | 0.46% | 0.47% | 0.47% | 0.23% | 0.48% | ||||||||||
Nonperforming assets to total assets | 0.34% | 0.35% | 0.34% | 0.17% | 0.35% |