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Norwood Financial Corp Announces Third Quarter 2024 Results

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Norwood Financial Corp (NWFL) reported Q3 2024 earnings of $3.8 million ($0.48 per share), down from the same period last year. Net interest income increased by $892 thousand, offset by higher operating expenses and credit loss provisions. The company's net interest margin rose to 2.99%, up 19 basis points from the previous quarter and 7 basis points year-over-year. Total assets reached $2.280 billion, with loans at $1.675 billion and deposits at $1.855 billion. Loans grew at an 8% annualized rate during Q3, while capital improved as the negative mark-to-market effect decreased 42% since last year.

Norwood Financial Corp (NWFL) ha riportato utili del terzo trimestre 2024 di 3,8 milioni di dollari (0,48 dollari per azione), in calo rispetto allo stesso periodo dell'anno scorso. Il reddito netto da interessi è aumentato di 892 mila dollari, compensato da spese operative più elevate e accantonamenti per perdite su crediti. Il margine di interesse netto della società è aumentato al 2,99%, con un incremento di 19 punti base rispetto al trimestre precedente e di 7 punti base rispetto all'anno precedente. Il totale degli attivi ha raggiunto 2,280 miliardi di dollari, con prestiti per 1,675 miliardi di dollari e depositi per 1,855 miliardi di dollari. I prestiti sono cresciuti a un tasso annualizzato dell'8% durante il terzo trimestre, mentre il capitale è migliorato poiché l'effetto negativo del mark-to-market è diminuito del 42% rispetto all'anno scorso.

Norwood Financial Corp (NWFL) reportó ganancias del tercer trimestre de 2024 de 3.8 millones de dólares (0.48 dólares por acción), una disminución en comparación con el mismo período del año pasado. Los ingresos netos por intereses aumentaron en 892 mil dólares, compensados por mayores gastos operativos y provisiones para pérdidas crediticias. El margen de interés neto de la compañía subió al 2.99%, un aumento de 19 puntos básicos en comparación con el trimestre anterior y de 7 puntos básicos interanuales. Los activos totales alcanzaron los 2.280 millones de dólares, con préstamos por 1.675 millones de dólares y depósitos por 1.855 millones de dólares. Los préstamos crecieron a una tasa anualizada del 8% durante el tercer trimestre, mientras que el capital mejoró, ya que el efecto negativo del mark-to-market disminuyó un 42% desde el año pasado.

노우드 파이낸셜 코프 (NWFL)는 2024년 3분기 수익이 380만 달러(주당 0.48달러)로 발표했으며, 이는 작년 같은 기간과 비교해 감소한 수치입니다. 순이자 수익은 892천 달러 증가했으나, 운영 비용 상승과 신용 손실 대비를 상쇄했습니다. 회사의 순이자 마진은 2.99%로 증가했으며, 이는 전 분기 대비 19 베이시스 포인트 및 전년 대비 7 베이시스 포인트 상승한 수치입니다. 총 자산은 22억 8천만 달러에 이르렀고, 대출은 16억 7천5백만 달러, 예금은 18억 5천5백만 달러입니다. 대출은 3분기 동안 연율 8% 성장했으며, 자본은 마크투마켓 효과가 작년 대비 42% 감소하면서 개선되었습니다.

Norwood Financial Corp (NWFL) a annoncé des bénéfices de 3,8 millions de dollars (0,48 dollar par action) pour le troisième trimestre 2024, en baisse par rapport à la même période l'année dernière. Les revenus nets d'intérêts ont augmenté de 892 000 dollars, compensés par une hausse des charges d'exploitation et des provisions pour pertes sur créances. La marge d'intérêt nette de l'entreprise a augmenté à 2,99 %, soit une hausse de 19 points de base par rapport au trimestre précédent et de 7 points de base par rapport à l'année précédente. Les actifs totaux ont atteint 2,280 milliards de dollars, avec des prêts à 1,675 milliard de dollars et des dépôts à 1,855 milliard de dollars. Les prêts ont enregistré une croissance à un taux annualisé de 8 % au cours du troisième trimestre, tandis que le capital s'est amélioré grâce à une baisse de 42 % des effets négatifs de la variation de juste valeur par rapport à l'année dernière.

Norwood Financial Corp (NWFL) berichtete für das 3. Quartal 2024 einen Gewinn von 3,8 Millionen Dollar (0,48 Dollar pro Aktie), was einen Rückgang im Vergleich zum gleichen Zeitraum des Vorjahres darstellt. Die Nettozinsaufwendungen stiegen um 892 Tausend Dollar, wurden jedoch durch höhere Betriebskosten und Rückstellungen für Kreditverluste ausgeglichen. Die Nettozinsmarge des Unternehmens stieg auf 2,99 %, was einem Anstieg von 19 Basispunkten im Vergleich zum vorherigen Quartal und 7 Basispunkten gegenüber dem Vorjahr entspricht. Die Gesamtsumme der Vermögenswerte erreichte 2,280 Milliarden Dollar, wobei die Kredite 1,675 Milliarden Dollar und die Einlagen 1,855 Milliarden Dollar betrugen. Die Kredite wuchsen im 3. Quartal mit einer annualisierten Rate von 8 %, während das Eigenkapital sich verbesserte, da der negative Mark-to-Market-Effekt um 42 % im Vergleich zum Vorjahr zurückging.

Positive
  • Net interest margin increased to 2.99% from 2.92% year-over-year
  • Loans grew at 8% annualized rate in Q3
  • Total assets increased to $2.280 billion from $2.180 billion year-over-year
  • 42% reduction in negative mark-to-market effect since last year
Negative
  • Q3 earnings decreased by $275,000 compared to last year
  • EPS declined to $0.48 from $0.51 year-over-year
  • 9-month net income dropped by $3.9 million compared to 2023
  • Operating expenses increased by $755,000 in Q3 compared to 2023

Insights

Q3 results show mixed performance with some concerning trends. Net income dropped to $3.8 million, down from the same period last year, with EPS declining to $0.48 from $0.51. The 8% annualized loan growth is positive, but comes with increased credit loss provisions.

The improved net interest margin of 2.99% is a bright spot, up 19 basis points sequentially and 7 basis points year-over-year. However, the nine-month performance shows broader challenges with net income down $3.9 million year-over-year and ROA at just 0.75%.

While capital remains above well-capitalized levels and credit quality metrics are strong, rising operating expenses and higher funding costs are pressuring profitability. The 42% reduction in negative mark-to-market impact on the bond portfolio is encouraging for capital stability.

Quarterly Highlights:

  • Net interest margin increased 19 basis points vs. the prior quarter and 7 basis points over the prior year.
  • Loans grew at an 8% annualized rate during the 3rd quarter.
  • Capital continues to improve as the negative mark-to-market effect lessens 42% since last year.

HONESDALE, Pa., Oct. 28, 2024 (GLOBE NEWSWIRE) -- Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced earnings for the three months ended September 30, 2024 of $3.8 million, which was $275 thousand lower than the same three-month period of last year. Net interest income was up by $892 thousand which was offset by increases in operating expense and the provision for credit losses. Earnings per share (fully diluted) were $0.48 in the three months ended September 30, 2024, compared to $0.51 in the same period of last year. The annualized return on average assets for the three months ended September 30, 2024, was 0.68%, while the annualized return on average tangible equity was 9.58%.

Net income for the nine months ended September 30, 2024, was $12.5 million, which is $3.9 million lower than the same nine-month period of 2023, due to a decrease in net interest income, an increase in the provision for credit losses, and an increase in operating expenses, partially offset by an increase in total other income. Earnings per share (fully diluted) for the nine months ended September 30, 2024, were $1.55, compared to $2.03 for the nine months ended September 30, 2023. The annualized return on average assets for the nine months ended September 30, 2024 was 0.75%. The annualized return on average tangible equity for the nine months ended September 30, 2024 was 10.82%.

Total assets as of September 30, 2024 were $2.280 billion, compared to $2.180 billion at September 30, 2023. At September 30, 2024, loans receivable were $1.675 billion, total deposits were $1.855 billion and stockholders’ equity was $195.7 million.

For the three months ended September 30, 2024, net interest income, on a fully-taxable equivalent basis (fte), totaled $16.1 million, an increase of $914 thousand compared to the same period in 2023. A $77.5 million increase in average interest-earning assets, generated an increase in interest income of $4.0 million. Interest expense increased $3.1 million mainly due to higher deposit balances and higher rates on those deposits. Net interest margin (fte) for the three months ended September 30, 2024 was 2.99%, compared to 2.92% in the same period of 2023. The tax-equivalent yield on interest-earning assets increased 58 basis points to 5.31% during the three months ended September 30, 2024, compared to the same prior year period, while the cost of interest-bearing liabilities increased 62 basis points to 3.09%.

Net interest income (fte) for the nine-months ended September 30, 2024 totaled $45.6 million, which was $1.2 million lower than the same period in 2023, due primarily to a $14.8 million increase in the cost of interest-bearing liabilities. The net interest margin (fte) was 2.87% for the nine-months ended September 30, 2024, as compared to 3.10% for the nine-months ended September 30, 2023.

Other income for the three months ended September 30, 2024, totaled $2.3 million, compared to $2.3 million for the same period in 2023. For the nine-months ended September 30, 2024, other income totaled $6.5 million, compared to $6.0 million for the nine-months ended September 30, 2023.

Other expenses totaled $12.0 million for the three months ended September 30, 2024, an increase of $755 thousand, compared to the $11.3 million for the same period of 2023. For the nine-months ended September 30, 2024, other expenses totaled $35.2 million, compared to $32.6 million for the same period in 2023, due primarily to an increase in salaries and benefits, professional fees, data processing costs and FDIC insurance.

Jim Donnelly President and CEO of Norwood Financial Corp and Wayne Bank, stated, “We are pleased to present our result of operations for the third quarter. Although strong loan growth caused an increase in our provision for credit losses we welcome the ongoing opportunity to serve our customers. Net interest margin (fte) for this quarter eclipsed the margin for last year, something that hasn’t happened since the Federal Reserve began raising interest rates. Our capital base remains above “Well-Capitalized” targets and we continue to show less impact from the market value of our bond portfolio. Additionally, our credit quality metrics remained strong during the third quarter, which we believe should benefit future performance. We appreciate the opportunity to serve our Wayne Bank customers and our customers at the Bank of the Finger Lakes and Bank of Cooperstown locations. We continue to look for opportunities available to us as we service our growing base of stockholders and customers.”

Norwood Financial Corp is the parent company of Wayne Bank, which operates from fourteen offices throughout Northeastern Pennsylvania and fifteen 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”.

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.

Non-GAAP Financial Measures

This release references net interest income on a fully taxable-equivalent basis (fte), which is a non-GAAP (Generally Accepted Accounting Principles) financial measure. Fully taxable-equivalent net interest income was derived from GAAP interest income and net interest income using an assumed tax rate of 21%. We believe the presentation of net interest income on a fully taxable-equivalent basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.

The following table reconciles net interest income to net interest income on a fully taxable-equivalent basis:

   
(dollars in thousands)

Three months endedNine months ended
September 30September 30
  2024  2023  2024  2023
Net Interest Income
$
        15,931
 $
        15,039
 $
        45,566
 $
        46,774
Taxable equivalent basis
adjustment using 21% marginal
tax rate
 207  185  601  554
Net interest income on a fully
taxable equivalent basis
$16,138 $15,224 $46,167 $47,328
            

This release also references average tangible equity, which is also a non-GAAP financial measure. Average tangible equity is calculated by deducting average goodwill and other intangible assets from average stockholders’ equity. The Company believes that disclosure of tangible equity ratios enhances investor understanding of our financial position and improves the comparability of our financial data.

The following table reconciles average equity to average tangible equity:

    
 Three months ended Nine months ended
(dollars in thousands)September 30 September 30
  2024   2023  2024  2023
Average equity
$189,135 $175,224 $183,593  $174,943
Average goodwill and other
intangibles
  (29,440)  (29,514)   (29,457)  (29,536)
Average tangible equity$159,695 $145,710 $154,136 $145,407
            

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)
 September 30
  2024
 2023
 
ASSETS       
Cash and due from banks$ 47,072  $41,141 
Interest-bearing deposits with banks 35,808   13,005 
Cash and cash equivalents 82,880   54,146 
        
Securities available for sale 396,891   380,499 
Loans receivable 1,675,139   1,611,069 
Less: Allowance for credit losses 18,699   16,086 
Net loans receivable 1,656,440   1,594,983 
Regulatory stock, at cost 6,329   8,843 
Bank premises and equipment, net 18,503   17,254 
Bank owned life insurance 46,382   46,197 
Foreclosed real estate owned 0   290 
Accrued interest receivable 8,062   7,759 
Deferred tax assets, net 18,818   25,610 
Goodwill 29,266   29,266 
Other intangible assets 167   240 
Other assets 16,013   14,911 
TOTAL ASSETS$        2,279,751  $        2,179,998 


      
LIABILITIES
     
Deposits:     
Non-interest bearing demand$420,967  $430,242 
Interest-bearing 1,434,284   1,316,582 
Total deposits 1,855,251   1,746,824 
Short-term borrowings 52,453   103,881 
Other borrowings 144,959   137,447 
Accrued interest payable 12,688   8,605 
Other liabilities 18,746   18,539 
TOTAL LIABILITIES 2,084,097   2,015,296 
        
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: 8,311,851 shares, 2023: 8,291,401 shares
 831   829 
Surplus 98,330   97,449 
Retained earnings 140,489   137,363 
Treasury stock, at cost: 2024: 221,140 shares, 2023: 222,051 shares (5,969)  (5,957)
Accumulated other comprehensive loss (38,027)  (64,982)
TOTAL STOCKHOLDERS' EQUITY 195,654   164,702 
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
$2,279,751  $2,179,998 


     
NORWOOD FINANCIAL CORP
Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
    
  Three Months Ended September 30, Nine Months Ended September 30,
  2024 2023  2024    2023 
INTEREST INCOME           
Loans receivable, including fees$25,464 22,021 $73,266 $61,881 
Securities 2,526  2,433  7,635  7,418 
Other 497  54  2,194  156 
Total Interest income 28,487  24,508  83,095  69,455 
           
INTEREST EXPENSE          
Deposits 10,553  7,017  31,349  17,119 
Short-term borrowings 323  1,126  1,015  2,702 
Other borrowings 1,680  1,326  5,165  2,860 
Total Interest expense 12,556  9,469  37,529  22,681 
NET INTEREST INCOME 15,931  15,039  45,566  46,774 
PROVISION FOR CREDIT LOSSES 1,345 $882 $        1,069 $(568)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 14,586  14,157  44,497  47,342 
           
OTHER INCOME          
Service charges and fees 1,517  1,527  4,364  4,192 
Income from fiduciary activities 256  246  719  688 
Net realized (losses) gains on sales of securities -  -  -  (209)
Gains on sales of loans, net 103  18  145  27 
Gains on sales of foreclosed real estate owned -  13  32  13 
Earnings and proceeds on life insurance policies 261  328  781  770 
Other 158  174  467  520 
Total other income 2,295  2,306  6,508  6,001 
           
OTHER EXPENSES          
Salaries and employee benefits 6,239  6,083  18,328  17,893 
Occupancy, furniture and equipment 1,269  1,242  3,758  3,818 
Data processing and related operations 1,162  876  3,208  2,465 
Taxes, other than income 179  167  452  490 
Professional fees 576  524  1,669  1,132 
FDIC Insurance assessment 339  254  1,009  699 
Foreclosed real estate 9  9  45  112 
Amortization of intangibles 16  20  54  66 
Other 2,242  2,101  6,683  5,974 
Total other expenses 12,031  11,276  35,206  32,649 
             
INCOME BEFORE TAX 4,850  5,187  15,799  20,694 
INCOME TAX EXPENSE 1,006  1,068  3,308  4,289 
NET INCOME$3,844 $4,119 $12,491 $16,405 
             
Basic earnings per share$0.48 $0.51 $1.55 $2.03 
             
Diluted earnings per share$0.48 $0.51 $1.55 $2.03 


        
NORWOOD FINANCIAL CORP
Financial Highlights (Unaudited)
(dollars in thousands, except per share data)
       
For the Three Months Ended September 30 2024   2023 
Net interest income$        15,931  $        15,039 
Net income 3,844   4,119 
        
Net interest spread (fully taxable equivalent) 2.23%  2.26%
Net interest margin (fully taxable equivalent) 2.99%  2.92%
Return on average assets 0.68%  0.76%
Return on average equity 8.09%  9.33%
Return on average tangible equity 9.58%  11.22%
Basic earnings per share$        0.48  $        0.51 
Diluted earnings per share$        0.48  $        0.51 
        
For the Nine Months Ended September 30 2024   2023 
Net interest income$        45,566  $        46,774 
Net income 12,491   16,405 
        
Net interest spread (fully taxable equivalent) 2.12%  2.56%
Net interest margin (fully taxable equivalent) 2.87%  3.10%
Return on average assets 0.75%  1.04%
Return on average equity 9.09%  12.54%
Return on average tangible equity 10.82%  15.08%
Basic earnings per share$        1.55  $        2.03 
Diluted earnings per share$        1.55  $        2.03 
        
As of September 30 2024   2023 
Total assets$        2,279,751  $        2,179,998 
Total loans receivable 1,675,139   1,611,069 
Allowance for credit losses 18,699   16,086 
Total deposits 1,855,251   1,746,824 
Stockholders' equity 195,654   164,702 
Trust assets under management 209,857   185,913 
        
Book value per share$        24.92  $        21.15 
Tangible book value per share$        21.28  $        17.49 
Equity to total assets 8.58%  7.56%
Allowance to total loans receivable 1.12%  1.00%
Nonperforming loans to total loans 0.47%  0.65%
Nonperforming assets to total assets 0.35%  0.50%


 
NORWOOD FINANCIAL CORP
Consolidated Balance Sheets (unaudited)
(dollars in thousands)
 September 30
2024
June 30
2024
March 31
2024
December 31
2023
September 30
2023
ASSETS     
Cash and due from banks$
        47,072
 $
        29,903
 $
        19,519
 $
        28,533
 $
        41,141
 
Interest-bearing deposits with banks  35,808  39,492  92,444  37,587  13,005 
Cash and cash equivalents 82,880  69,395  111,963  66,120  54,146 
                
Securities available for sale 396,891  397,578  398,374  406,259  380,499 
Loans receivable 1,675,139  1,641,356  1,621,448  1,603,618  1,611,069 
Less: Allowance for credit losses 18,699  17,807  18,020  18,968  16,086 
Net loans receivable 1,656,440  1,623,549  1,603,428  1,584,650  1,594,983 
Regulatory stock, at cost 6,329  6,443  6,545  7,318  8,843 
Bank owned life insurance 46,382  46,121  45,869  46,439  46,197 
Bank premises and equipment, net 18,503  18,264  18,057  17,838  17,254 
Foreclosed real estate owned 0  0  97  97  290 
Goodwill and other intangibles 29,433  29,449  29,468  29,487  29,506 
Other assets 42,893  44,517  46,622  42,871  48,280 
TOTAL ASSETS$        2,279,751 $        2,235,316 $        2,260,423 $        2,201,079 $        2,179,998 
      
LIABILITIES
     
Deposits       
Non-interest bearing demand$        420,967 $        391,849 $        383,362 $        399,545 $        430,242 
Interest-bearing deposits 1,434,284  1,419,323  1,455,636  1,395,614  1,316,582 
Total deposits 1,855,251  1,811,172  1,838,998  1,795,159  1,746,824 
Borrowings 197,412  210,422  211,234  198,312  241,328 
Other liabilities 31,434  31,534  28,978  26,538  27,144 
TOTAL LIABILITIES 2,084,097  2,053,128  2,079,210  2,020,009  2,015,296 
                
STOCKHOLDERS' EQUITY 195,654  182,188  181,213  181,070  164,702 
                
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$        2,279,751 $        2,235,316 $        2,260,423 $        2,201,079 $        2,179,998 


       
NORWOOD FINANCIAL CORP
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)
    
       
  September 30
2024
June 30
2024
March 31
2024
December 31
2023
September 30
2023
Three months ended 
INTEREST INCOME      
Loans receivable, including fees$25,464 $24,121 $23,681 $23,328 $22,021 
Securities 2,526  2,584  2,526  2,504  2,433 
Other 497  966  731  253  54 
Total interest income 28,487  27,671  26,938  26,085  24,508 
                
INTEREST EXPENSE      
Deposits 10,553  10,687  10,110  8,910  7,017 
Borrowings 2,003  2,059  2,118  1,882  2,452 
Total interest expense 12,556  12,746  12,228  10,792  9,469 
NET INTEREST INCOME 15,931  14,925  14,710  15,293  15,039 
(RELEASE OF) PROVISION FOR CREDIT LOSSES 1,345  347  (624 6,116  882 
NET INTEREST INCOME AFTER (RELEASE OF)
PROVISION FOR CREDIT LOSSES
      
14,586  14,578  15,334  9,177  14,157 
       
OTHER INCOME               
Service charges and fees 1,517  1,504  1,343  1,421  1,527 
Income from fiduciary activities 256  225  238  210  246 
Net realized (losses) gains on sales of securities -  -  -  -  - 
Gains on sales of loans, net 103  36  6  36  18 
Gains on sales of foreclosed real estate owned -  32  -  66  13 
Earnings and proceeds on life insurance policies 261  253  268  242  328 
Other 158  157  151  148  174 
Total other income 2,295  2,207  2,006  2,123  2,306 
                
OTHER EXPENSES      
Salaries and employee benefits 6,239  5,954  6,135  5,672  6,083 
Occupancy, furniture and equipment, net 1,269  1,229  1,261  1,265  1,242 
Foreclosed real estate 9  15  21  17  9 
FDIC insurance assessment 339  309  361  287  254 
Other 4,175  3,937  3,954  3,608  3,688 
Total other expenses 12,031  11,444  11,732  10,849  11,276 
                
INCOME BEFORE TAX 4,850  5,341  5,608  451  5,187 
INCOME TAX EXPENSE 1,006  1,128  1,175  96  1,068 
NET INCOME$3,844 $4,213 $4,433 $355 $4,119 
                
Basic earnings per share$0.48 $0.52 $0.55 $0.04 $0.51 
                
Diluted earnings per share$0.48 $0.52 $0.55 $0.04 $0.51 
                
Book Value per share$24.92 $23.26 $23.01 $22.99 $21.15 
Tangible Book Value per share 21.28  19.62  19.38  19.36  17.49 
                
Return on average assets (annualized) 0.68% 0.75% 0.80% 0.06 0.76%
Return on average equity (annualized) 8.09% 9.41 9.79 0.84 9.33%
Return on average tangible equity (annualized) 9.58% 11.26 11.68 1.01 11.22%
                
Net interest spread (fte) 2.23% 2.05 2.07 2.24 2.28%
Net interest margin (fte) 2.99% 2.79 2.79 2.95 2.94%
                
Allowance for credit losses to total loans 1.12% 1.08 1.11 1.18 1.00%
Net charge-offs to average loans (annualized) 0.08% 0.13 0.08 0.79 0.59%
Nonperforming loans to total loans 0.47% 0.47 0.23 0.48 0.65%
Nonperforming assets to total assets 0.35% 0.34 0.17 0.35 0.50%


NORWOOD FINANCIAL CORP
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)

 For the Quarter Ended
 September 30, 2024For the Quarter Ended June 30, 2024September 30, 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$36,221 $497 5.46%$69,173 $967 5.62%$3,675 $54 5.83%
Securities available for sale:           
Taxable 392,168  2,161 2.19  401,014  2,206 2.21  406,962  2,052 2.00 
Tax-exempt (1) 67,563  461 2.71  69,126  477 2.78  70,219  483 2.73 
Total securities available for sale (1) 459,731  2,622 2.27  470,140  2,683 2.30  477,181  2,535 2.11 
Loans receivable (1) (4) (5) 1,651,921  25,575 6.16  1,629,283  24,220 5.98  1,589,474  22,104 5.52 
Total interest-earning assets 2,147,873  28,694 5.31  2,168,596  27,870 5.17  2,070,330  24,693 4.73 
Non-interest earning assets:           
Cash and due from banks 28,193     26,422     27,910   
Allowance for credit losses (17,944)    (18,023)    (17,262)  
Other assets 78,344     69,718     65,863   
Total non-interest earning assets 88,593     78,117     76,511   
Total Assets$2,236,466    $2,246,713    $2,146,841   
Liabilities and Stockholders' Equity           
Interest-bearing liabilities:           
            
Interest-bearing demand and money market$461,897 $2,782 2.40 $450,918 $2,397 2.14 $439,255 $1,647 1.49 
Savings 221,366  13 0.02  233,676  286 0.49  238,493  77 0.13 
Time 734,235  7,758 4.20  755,224  8,004 4.26  611,607  5,293 3.43 
Total interest-bearing deposits 1,417,498  10,553 2.96  1,439,818  10,687 2.99  1,289,355  7,017 2.16 
Short-term borrowings 53,622  323 2.40  61,689  356 2.32  116,470  1,126 3.84 
Other borrowings 146,357  1,680 4.57  149,442  1,703 4.58  116,700  1,326 4.51 
Total interest-bearing liabilities 1,617,477  12,556 3.09  1,650,949  12,746 3.11  1,522,525  9,469 2.47 
Non-interest bearing liabilities:           
Demand deposits 400,314     387,962     425,216   
Other liabilities 29,540     28,308     23,876   
Total non-interest bearing liabilities 429,854     416,270     449,092   
Stockholders' equity 189,135     179,494     175,224   
Total Liabilities and Stockholders' Equity$2,236,466    $2,246,713    $2,146,841   
Net interest income/spread (tax equivalent basis)  16,138 2.23%  15,124 2.06%  15,224 2.26%
Tax-equivalent basis adjustment  (207)    (199)    (185) 
Net interest income $15,931    $14,925    $15,039  
Net interest margin (tax equivalent basis)  2.99%  2.80%  2.92%
             

(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.



FAQ

What was Norwood Financial Corp's (NWFL) earnings per share in Q3 2024?

Norwood Financial Corp reported earnings per share of $0.48 for Q3 2024, compared to $0.51 in the same period last year.

How much did NWFL's net interest margin increase in Q3 2024?

NWFL's net interest margin increased by 19 basis points compared to the previous quarter and 7 basis points year-over-year, reaching 2.99%.

What was NWFL's total asset value as of September 30, 2024?

NWFL's total assets were $2.280 billion as of September 30, 2024, compared to $2.180 billion the previous year.

What was NWFL's loan growth rate in Q3 2024?

NWFL's loans grew at an 8% annualized rate during the third quarter of 2024.

Norwood Financial Corp

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