Norwood Financial Corp announces Fourth Quarter and Full Year 2024 Results
Norwood Financial Corp (NWFL) reported Q4 and full-year 2024 results, highlighting a strategic capital raise and investment portfolio repositioning. The company incurred a one-time $20 million loss from securities sales, resulting in a Q4 net loss of $12.7 million and full-year net loss of $160,000 (-$0.02 per diluted share), compared to net income of $16.8 million ($2.07 per diluted share) in 2023.
Key metrics include: net interest margin increased to 3.04% in Q4 2024 (vs 2.93% in Q4 2023), loans grew at 9% annualized rate in Q4, and total assets reached $2.317 billion. The company's adjusted Q4 net income (excluding the one-time loss) was $3.119 million, with adjusted EPS of $0.38. Tangible Common Equity improved to 8.05% from 6.98% year-over-year.
Norwood Financial Corp (NWFL) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, evidenziando un aumento strategico di capitale e una ristrutturazione del portafoglio di investimenti. L'azienda ha subito una perdita una tantum di 20 milioni di dollari dalla vendita di titoli, portando a una perdita netta di 12,7 milioni di dollari nel quarto trimestre e a una perdita netta annuale di 160.000 dollari (-0,02 dollari per azione diluita), rispetto a un reddito netto di 16,8 milioni di dollari (2,07 dollari per azione diluita) nel 2023.
I principali indicatori includono: il margine di interesse netto è aumentato al 3,04% nel quarto trimestre 2024 (rispetto al 2,93% nel quarto trimestre 2023), i prestiti sono cresciuti a un tasso annualizzato del 9% nel quarto trimestre e il totale delle attività ha raggiunto 2,317 miliardi di dollari. Il reddito netto rettificato del quarto trimestre (escludendo la perdita una tantum) è stato di 3,119 milioni di dollari, con un utile per azione rettificato di 0,38 dollari. L'Equità Comune Tangibile è migliorata all'8,05% rispetto al 6,98% rispetto all'anno precedente.
Norwood Financial Corp (NWFL) reportó los resultados del cuarto trimestre y del año completo 2024, destacando una recaudación de capital estratégica y una reestructuración de la cartera de inversiones. La empresa incurrió en una pérdida única de 20 millones de dólares por la venta de valores, lo que resultó en una pérdida neta de 12,7 millones de dólares en el cuarto trimestre y una pérdida neta anual de 160.000 dólares (-0,02 dólares por acción diluida), en comparación con un ingreso neto de 16,8 millones de dólares (2,07 dólares por acción diluida) en 2023.
Los indicadores clave incluyen: el margen de interés neto aumentó al 3,04% en el cuarto trimestre de 2024 (frente al 2,93% en el cuarto trimestre de 2023), los préstamos crecieron a una tasa anualizada del 9% en el cuarto trimestre, y el total de activos alcanzó los 2,317 millones de dólares. El ingreso neto ajustado del cuarto trimestre (excluyendo la pérdida única) fue de 3,119 millones de dólares, con una utilidad por acción ajustada de 0,38 dólares. El Patrimonio Común Tangible mejoró al 8,05% desde el 6,98% año tras año.
Norwood Financial Corp (NWFL)는 2024년 4분기 및 전체 연간 실적을 보고하며 전략적 자본 조달과 투자 포트폴리오 재편성을 강조했습니다. 해당 회사는 증권 판매로 인해 2천만 달러의 일회성 손실을 입어 4분기 순손실이 1,270만 달러, 연간 순손실이 16만 달러(-0.02 달러 주당 희석 기준)로 기록되었으며, 이는 2023년 1,680만 달러(주당 2.07 달러)의 순이익과 비교됩니다.
주요 지표로는, 2024년 4분기 순이자 마진이 3.04%로 증가했으며 (2023년 4분기 2.93% 대비), 대출은 4분기 연율 9%로 성장했고, 총 자산은 23억 1,700만 달러에 도달했습니다. 회사의 조정된 4분기 순이익(일회성 손실 제외)은 311.9만 달러였으며, 조정된 EPS는 0.38 달러였습니다. 실질적 공통 자본 비율은 전년 대비 6.98%에서 8.05%로 개선되었습니다.
Norwood Financial Corp (NWFL) a publié les résultats du quatrième trimestre et de l'année complète 2024, mettant en avant une augmentation stratégique de capital et un repositionnement du portefeuille d'investissement. L'entreprise a enregistré une perte unique de 20 millions de dollars provenant de la vente de titres, entraînant une perte nette de 12,7 millions de dollars au quatrième trimestre et une perte nette annuelle de 160 000 dollars (-0,02 dollar par action diluée), par rapport à un bénéfice net de 16,8 millions de dollars (2,07 dollars par action diluée) en 2023.
Les indicateurs clés incluent : la marge d'intérêt nette a augmenté à 3,04 % au quatrième trimestre 2024 (contre 2,93 % au quatrième trimestre 2023), les prêts ont crû à un taux annualisé de 9 % au quatrième trimestre, et le total des actifs a atteint 2,317 milliards de dollars. Le bénéfice net ajusté du quatrième trimestre (hors perte unique) était de 3,119 millions de dollars, avec un bénéfice par action ajusté de 0,38 dollar. L'Équité Commune Tangible a progressé à 8,05 % contre 6,98 % d'une année sur l'autre.
Norwood Financial Corp (NWFL) hat die Ergebnisse des 4. Quartals und des gesamten Jahres 2024 bekannt gegeben und dabei eine strategische Kapitalerhöhung sowie eine Umstrukturierung des Investmentportfolios hervorgehoben. Das Unternehmen verzeichnete einen einmaligen Verlust von 20 Millionen Dollar aus dem Verkauf von Wertpapieren, was zu einem Nettverlust von 12,7 Millionen Dollar im 4. Quartal und einem Nettverlust von 160.000 Dollar (-0,02 Dollar pro verwässerter Aktie) führte, verglichen mit einem Nettogewinn von 16,8 Millionen Dollar (2,07 Dollar pro verwässerter Aktie) im Jahr 2023.
Zu den wichtigsten Kennzahlen gehören: Die Nettozinsmarge stieg im 4. Quartal 2024 auf 3,04% (im Vergleich zu 2,93% im 4. Quartal 2023), die Kredite wuchsen im 4. Quartal mit einer annualisierten Rate von 9%, und die Gesamtsumme der Vermögenswerte erreichte 2,317 Milliarden Dollar. Der bereinigte Nettogewinn des Unternehmens im 4. Quartal (ohne den einmaligen Verlust) betrug 3,119 Millionen Dollar, mit einem bereinigten Ergebnis je Aktie von 0,38 Dollar. Das greifbare Stammkapital verbesserte sich im Jahresvergleich von 6,98% auf 8,05%.
- Net interest margin increased to 3.04% in Q4 2024, up 11 basis points year-over-year
- Loans grew at 9% annualized rate in Q4
- Total assets increased to $2.317 billion from $2.201 billion year-over-year
- Tangible Common Equity improved to 8.05% from 6.98% year-over-year
- Net interest income increased year-over-year for both Q4 and full year
- Q4 2024 net loss of $12.7 million due to one-time $20 million securities loss
- Full-year 2024 net loss of $160,000 compared to $16.8 million profit in 2023
- Full-year net interest margin declined to 2.91% from 3.06% in 2023
- Non-interest expenses increased to $48.6 million from $43.5 million in 2023
Insights
The Q4 and FY2024 results for Norwood Financial Corp reveal a strategic transformation focused on long-term sustainability, though at a short-term cost. The headline $20M loss from investment portfolio restructuring masks several positive underlying trends:
1. Core Performance Indicators:
- Net interest margin expanded to
3.04% in Q4, up 11 basis points YoY - Loan portfolio grew at a robust
9% annualized rate - Tangible Common Equity ratio strengthened to
8.05% from6.98%
2. Strategic Repositioning:
- The investment portfolio restructuring, while causing a one-time loss, positions the bank for higher yields in a declining rate environment
- Successful capital raise strengthens the balance sheet and provides growth capacity
- Total assets grew to
$2.317B , reflecting continued business expansion
3. Adjusted Performance Metrics:
- Excluding the one-time loss, adjusted Q4 net income was
$3.119M versus$355K in 2023 - Adjusted ROA improved to
0.54% from0.06% in Q4 - Adjusted return on tangible equity reached
7.59% , up from1.01%
This strategic repositioning demonstrates management's proactive approach to interest rate risk management. The improved capital position and restructured portfolio suggest enhanced earnings potential for 2025, particularly if the Federal Reserve proceeds with expected rate cuts. The bank's strong loan growth and expanding net interest margin indicate healthy core operations despite the transitional period.
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
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) | 8 bps | (30 bps | ) | |||||||||
| Net interest margin (fte) | 11 bps | (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 | ( | ) | (225 bps | ) | - | (80 bps | ) | |||||
| Return on tangible equity | ( | ) | (3,178 bps | ) | ( | ) | (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 | ||||||||||||
| (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 | 48 bps | (10 bps | ) | |||||||||
| Adjusted return on tangible equity | 654 bps | (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 | (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 | (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 | (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 | ||||||||||||||||||||||||
| (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 | ||||||||||||||||||||||||
| (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% | ||||||
| Net interest margin (fully taxable equivalent) | 3.04% | ||||||
| Return on average assets | - | ||||||
| Return on average equity | - | ||||||
| Return on average tangible equity | - | ||||||
| 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% | ||||||
| Net interest margin (fully taxable equivalent) | 2.91% | ||||||
| Return on average assets | - | ||||||
| Return on average equity | - | ||||||
| Return on average tangible equity | - | ||||||
| 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% | ||||||
| Allowance to total loans receivable | 1.16% | ||||||
| Nonperforming loans to total loans | 0.46% | ||||||
| Nonperforming assets to total assets | 0.34% | ||||||
| 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 | % | |||||||||||||
| Return on average equity (annualized) | -26.08 | % | |||||||||||||
| Return on average tangible equity (annualized) | -30.77 | % | |||||||||||||
| Net interest spread (fte) | |||||||||||||||
| Net interest margin (fte) | |||||||||||||||
| Allowance for credit losses to total loans | |||||||||||||||
| Net charge-offs to average loans (annualized) | |||||||||||||||
| Nonperforming loans to total loans | |||||||||||||||
| Nonperforming assets to total assets | |||||||||||||||
FAQ
What caused NWFL's $12.7 million loss in Q4 2024?
How did NWFL's loan growth perform in Q4 2024?
What was NWFL's net interest margin in Q4 2024 vs Q4 2023?
How did NWFL's full-year 2024 earnings compare to 2023?
What was NWFL's adjusted Q4 2024 earnings excluding one-time losses?
