Exhibit 99.1
FOR IMMEDIATE RELEASE
Norwood Financial Corp announces Fourth Quarter and Full Year 2024 Results
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, Pennsylvania – January 27, 2025 - 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 Company has a net loss of $12.7 million for the three months ended December 31, 2024. This was $13 million lower than the same period last year due one-time $20 million loss incurred on the sale of securities during December. |
| • | Net interest income was higher during the fourth quarter of 2024 than 2023 as increases in asset yields outpaced increases in yields on liabilities. |
| • | Correspondingly, the net interest margin in the fourth quarter was 3.04% in 2024 compared to 2.93% in 2023. |
Discussion of financial results for the year ended December 31, 2024:
| • | The Company posted a had a net loss of $160 thousand, or -$0.02 per diluted share, for the full-fiscal year ended year December 31, 2024 compared to net income of $16.8 million, or $2.07 per diluted share, for the fiscal year ended December in31. 2023. This loss was primarily due to a one-time $20 million loss incurred on the sale of securities during December 2024. |
| • | The full-year net interest margin was 2.91% in 2024 versus 3.06% in 2023. Deposit costs were higher in 2024, especially in the earlier part of the year, before the Federal Reserve began to cut rates. |
| • | Total non-interest expenses for 2024 were $48.6 million compared to $43.5 million in 2023. The increase was generally due to higher compensation and data processing costs. |
| • | Adjusted net income for the year was lower as higher net interest income and total other income was more than offset by an increase in total other expenses. |
| • | As of December 31, 2024, total assets were $2.317 billion, compared to $2.201 billion at December 31, 2023. Loans receivable were $1.693 billion, total deposits were $1.859 billion, and stockholders’ equity was $213.5 million. |
| • | Tangible Common Equity was 8.05% as of December 31, 2024, versus 6.98% at the end of 2023. |
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 | ||||||||||
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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 | ||||||||||||
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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 | ||||||||||
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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 | ||||||||||
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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 | ) | ||||
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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 | ||||||
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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 | ||||||
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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 | ||||||
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TOTAL ASSETS | $ | 2,317,462 | $ | 2,201,079 | ||||
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LIABILITIES | ||||||||
Deposits: | ||||||||
Non-interest bearing demand | $ | 381,479 | $ | 399,545 | ||||
Interest-bearing | 1,477,684 | 1,395,614 | ||||||
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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 | ||||||
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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 | ) | ||||
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TOTAL STOCKHOLDERS' EQUITY | 213,508 | 181,070 | ||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,317,462 | $ | 2,201,079 | ||||
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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 | ||||||||||||
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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 | ||||||||||||
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Total Interest expense | 12,860 | 10,792 | 50,389 | 33,473 | ||||||||||||
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NET INTEREST INCOME | 16,625 | 15,293 | 62,191 | 62,067 | ||||||||||||
PROVISION FOR CREDIT LOSSES | $ | 1,604 | $ | 6,116 | $ | 2,673 | $ | 5,548 | ||||||||
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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 | ||||||||||||
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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 | ||||||||||||
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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 | ||||||||||
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NET (LOSS) INCOME | $ | (12,651 | ) | $ | 355 | $ | (160 | ) | $ | 16,759 | ||||||
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Basic (loss) earnings per share | $ | (1.54 | ) | $ | 0.04 | $ | (0.02 | ) | $ | 2.08 | ||||||
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Diluted (loss) earnings per share | $ | (1.54 | ) | $ | 0.04 | $ | (0.02 | ) | $ | 2.07 | ||||||
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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 2024 | September 30 2024 | June 30 2024 | March 31 2024 | December 31 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 | |||||||||||||||
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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 | |||||||||||||||
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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 | |||||||||||||||
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TOTAL ASSETS | $ | 2,317,462 | $ | 2,279,751 | $ | 2,235,316 | $ | 2,260,423 | $ | 2,201,079 | ||||||||||
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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 | |||||||||||||||
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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 | |||||||||||||||
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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 | |||||||||||||||
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| |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,317,462 | $ | 2,279,751 | $ | 2,235,316 | $ | 2,260,423 | $ | 2,201,079 | ||||||||||
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| |||||||||||
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 | |||||||||||||||
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| |||||||||||
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 | |||||||||||||||
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Total interest expense | 12,860 | 12,556 | 12,746 | 12,228 | 10,792 | |||||||||||||||
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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 | ||||||||||||||
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| |||||||||||
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 | |||||||||||||||
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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 | |||||||||||||||
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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 | ||||||||||||||
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NET (LOSS) INCOME | $ | (12,651 | ) | $ | 3,844 | $ | 4,213 | $ | 4,433 | $ | 355 | |||||||||
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Basic (loss) earnings per share | $ | (1.54 | ) | $ | 0.48 | $ | 0.52 | $ | 0.55 | $ | 0.04 | |||||||||
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Diluted (loss) earnings per share | $ | (1.54 | ) | $ | 0.48 | $ | 0.52 | $ | 0.55 | $ | 0.04 | |||||||||
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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 | % | ||||||||||
NORWOOD FINANCIAL CORP
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)
| For the Quarter Ended | ||||||||||||||||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
| Average Balance (2) | Interest (1) | Average Rate (3) | Average Balance (2) | Interest (1) | Average Rate (3) | Average Balance (2) | Interest (1) | Average Rate (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 | |||||||||||||||||||||||||||
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| |||||||||||||||||||||
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 | |||||||||||||||||||||||||||
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| |||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Total non-interest earning assets | 92,048 | 88,593 | 69,294 | |||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Total Assets | $ | 2,299,732 | $ | 2,236,466 | $ | 2,166,165 | ||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
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| |||||||||||||||||||||
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 | |||||||||||||||||||||||||||
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| |||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
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Total non-interest bearing liabilities | 424,353 | 429,854 | 436,750 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 192,981 | 189,135 | 168,320 | |||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 2,299,732 | $ | 2,236,466 | $ | 2,166,165 | ||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Net interest income/spread (tax equivalent basis) | 16,843 | 2.31 | % | 16,138 | 2.23 | % | 15,488 | 2.23 | % | |||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
Tax-equivalent basis adjustment | (218 | ) | (207 | ) | (195 | ) | ||||||||||||||||||||||||||||||
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Net interest income | $ | 16,625 | $ | 15,931 | $ | 15,293 | ||||||||||||||||||||||||||||||
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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 Balance (2) | Interest (1) | Average Rate (3) | Average Balance (2) | Interest (1) | Average Rate (3) | Average Balance (2) | Interest (1) | Average Rate (3) | ||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
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|
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| |||||||||||||||||||
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 | |||||||||||||||||||||||||||
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| |||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Total non-interest earning assets | 84,519 | 81,991 | 73,137 | |||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Total Assets | $ | 2,250,171 | $ | 2,233,530 | $ | 2,128,570 | ||||||||||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||
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| |||||||||||||||||||
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 | |||||||||||||||||||||||||||
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| |||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Total non-interest bearing liabilities | 421,966 | 419,156 | 441,226 | |||||||||||||||||||||||||||||||||
Stockholders’ equity | 185,952 | 183,593 | 173,274 | |||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,250,171 | $ | 2,233,530 | $ | 2,128,570 | ||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Net interest income/spread (tax equivalent basis) | 63,010 | 2.17 | % | 46,167 | 2.12 | % | 62,816 | 2.47 | % | |||||||||||||||||||||||||||
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| |||||||||||||||||||||||||
Tax-equivalent basis adjustment | (819 | ) | (601 | ) | (749 | ) | ||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Net interest income | $ | 62,191 | $ | 45,566 | $ | 62,067 | ||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Net interest margin (tax equivalent basis) | 2.91 | % | 2.87 | % | 3.06 | % | ||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
| (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. |