8-K
NORWOOD FINANCIAL CORP (NWFL)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 17, 2025
NORWOOD FINANCIAL CORP
(Exact name of registrant as specified in its charter)
| Pennsylvania | 0-28364 | 23-2828306 |
|---|---|---|
| (State or other jurisdiction<br> <br>of incorporation) | (Commission<br> <br>File Number) | (IRS Employer<br> <br>Identification No.) |
| 717 Main Street, Honesdale, Pennsylvania | 18431 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (570) 253-1455
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br> <br>symbol(s) | Name of each exchange<br> <br>on which registered |
|---|---|---|
| Common Stock, par value $0.10 per share | NWFL | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
NORWOOD FINANCIAL CORP
INFORMATION TO BE INCLUDED IN THE REPORT
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On April 17, 2025, Norwood Financial Corp (the “Company”) issued a press release announcing its earnings for the quarter ended March 31, 2025. A copy of the press release is furnished with this report as exhibit 99.1 hereto and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
| Item 9.01 | Financial Statements and Exhibits. |
|---|---|
| (d) | Exhibits: |
| --- | --- |
The following exhibits are being furnished with this report.
| No. | Description |
|---|---|
| 99.1 | Press Release dated April 17, 2025. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NORWOOD FINANCIAL CORP | ||
|---|---|---|
| Date: April 17, 2025 | By: | /s/ John M. McCaffery |
| John M. McCaffery<br> <br>Executive Vice President and Chief Financial Officer<br> <br>(Duly Authorized Representative) |
EX-99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
Norwood Financial Corp announces First Quarter 2025 Results
Quarterly Highlights:
| • | Fully diluted EPS of $0.63, a 14.5% increase over the same period in 2024 |
|---|---|
| • | Return on assets rises to over 1.00%. |
| --- | --- |
| • | Net interest margin increased 30 basis points vs. the prior quarter and 11 basis points over the prior year.<br> |
| --- | --- |
| • | Loans grew at a 13.5% annualized rate during the first quarter. |
| --- | --- |
| • | Capital continues to improve on increased earnings and lower AOCI adjustment. |
| --- | --- |
Honesdale, Pennsylvania – April 17, 2025 – Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced results for the three months March 31, 2025.
Jim Donnelly, President and Chief Executive Officer of Norwood Financial Corp and Wayne Bank, stated, “The actions that we took in December 2024 to improve our capital and earnings have given us a great start to 2025. The portfolio repositioning has improved our net interest margin. That, coupled with strong annualized growth in loans and deposits, put us on a positive trajectory for 2025. We continue to benefit from lower deposit costs together with higher assets yields and our deposit growth has allowed us to lower our use of wholesale borrowings.”
Mr. Donnelly continued, “The capital that we raised in December 2024, has strengthened our balance sheet and will allow our Company to better weather any headwinds that come with global uncertainty. Although we do not have any international business per se, we do have customers who may have exposure to developing trade conditions. Because we are a community bank we are contacting our customers to determine how we can best assist them, if necessary. Additionally, we are being prudent regarding the opportunities in front of us, taking the time to assess the effects of changing economic circumstances.”
Selected **** Financial Highlights
| Year-Over Year | Linked Quarter | Adjusted Linked Quarter^1^ | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||
| (dollars in thousands, except per share data) | Mar-25 | Mar-24 | Change | Dec-24 | Change | Dec-24 | Change | ||||||||||||||
| Net interest income | 17,857 | 14,710 | 3,147 | 16,625 | 1,232 | 16,625 | 1,232 | ||||||||||||||
| Net interest spread (fte) | 2.61 | % | 2.08 | % | 53 | bps | 2.31 | % | 30 | bps | 2.31 | % | 30 | bps | |||||||
| Net interest margin (fte) | 3.30 | % | 2.80 | % | 50 | bps | 3.04 | % | 26 | bps | 3.04 | % | 26 | bps | |||||||
| Net income (loss) | 5,773 | 4,433 | 1,340 | (12,651 | ) | 18,424 | 3,119 | 2,654 | |||||||||||||
| Diluted earnings per share | 0.63 | 0.55 | 0.08 | -1.54 | -2.09 | 0.38 | 0.25 | ||||||||||||||
| Return on average assets | 1.01 | % | 0.80 | % | 21 | bps | -2.19 | % | 320 | bps | 0.54 | % | 47 | bps | |||||||
| Return on tangible equity | 12.40 | % | 11.65 | % | 75 | bps | -30.77 | % | (4,317 | bps) | 7.59 | % | 481 | bps | |||||||
| 1. | The above table includes non-GAAP financial measures excluding 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<br>Measures” below for a reconciliation of all non-GAAP financial measures. | ||||||||||||||||||||
| --- | --- |
Discussion of financial results for the three months ended March 31, 2025:
| • | The Company had net income of $5.8 million for the three months ended March 31, 2025, an increase<br>$1.3 million over the same period last year. |
|---|---|
| • | Net interest income increased during the first quarter of 2025 compared to the first quarter of 2024 due to<br>increases in asset yields which outpaced increases in yields on liabilities. |
| --- | --- |
| • | Correspondingly, the net interest margin in the first quarter of 2025 was 3.30% compared to 2.80% in the first<br>quarter of 2024. |
| --- | --- |
| • | The efficiency ratio for the first quarter of 2025 was 59.7% compared to 70.6% in the first quarter of 2024.<br> |
| --- | --- |
| • | As of March 31, 2025, total assets were $2.376 billion, compared to $2.260 billion at<br>March 31, 2024, an increase of 5.07% . |
| --- | --- |
| • | Loans receivable were $1.771 billion at March 31 2025, compared to $1.621 billion at<br>March 31, 2024, an increase of 9.24% . |
| --- | --- |
| • | Total deposits were $2.004 billion at March 31 2025, compared to $1.839 billion at March 31,<br>2024, an increase of 9.00% . |
| --- | --- |
| • | Tangible Common Equity was 8.16% as of March 31, 2025, versus 6.80% at March 31, 2024.<br> |
| --- | --- |
| • | Tangible Book Value per share increased $0.81 from $19.85 at December 31, 2024 to $20.66 at March 31,<br>2025. |
| --- | --- |
Norwood Financial Corp is the parent company of Wayne Bank, which operates from sixteen offices throughout Northeastern Pennsylvania and fourteen offices in 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 December 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<br>December 31, 2024 | |||
|---|---|---|---|
| Net (loss) income | $ | (12,651 | ) |
| Average assets | 2,299,732 | ||
| Return on average assets (annualized) | **** | -2.19 | % |
| Net (loss) income | (12,651 | ) | |
| Net realized losses on sale of securities | 19,962 | ||
| Tax effect at 21% | (4,192 | ) | |
| Adjusted Net Income (Non-GAAP) | 3,119 | ||
| Average assets | 2,299,732 | ||
| Adjusted return on average assets (annualized)(Non-GAAP) | **** | 0.54 | % |
Adjusted Return on Average TangibleShareholders’ Equity
(Dollars in thousands)
| Three Months Ended<br>December 31, 2024 | |||
|---|---|---|---|
| Net (loss) income | $ | (12,651 | ) |
| Average shareholders’ equity | 192,981 | ||
| Average intangible assets | 29,424 | ||
| Average tangible shareholders’ equity | 163,557 | ||
| Return on average tangible shareholders’ equity (annualized) | **** | -30.77 | % |
| Net (loss) income | (12,651 | ) | |
| Net realized losses on sale of securities | 19,962 | ||
| Tax effect at 21% | (4,192 | ) | |
| Adjusted Net Income (Non-GAAP) | 3,119 | ||
| Average tangible shareholders’ equity | 163,557 | ||
| Adjusted return on average shareholders’ equity (annualized) (Non-GAAP) | **** | 7.59 | % |
Adjusted Earnings Per Share
(Dollars in thousands)
| Three Months Ended<br>December 31, 2024 | |||
|---|---|---|---|
| GAAP-Based Earnings Per Share, Basic | $ | (1.54 | ) |
| GAAP-Based Earnings Per Share, Diluted | $ | (1.54 | ) |
| Net (Loss) Income | (12,651 | ) | |
| Net realized losses on sale of securities | 19,962 | ||
| Tax effect at 21% | (4,192 | ) | |
| Adjusted Net Income (Non-GAAP) | 3,119 | ||
| Adjusted Earnings per Share, Basic(Non-GAAP) | $ | 0.38 | **** |
| Adjusted Earnings per Share, Diluted(Non-GAAP) | $ | 0.38 | **** |
The following table reconciles average equity to average tangible equity:
| For the Period Ended<br>March 31 | ||||||
|---|---|---|---|---|---|---|
| (dollars in thousands) | 2025 | 2024 | ||||
| Average equity | $ | 218,194 | $ | 182,088 | ||
| Average goodwill and other intangibles | (29,409 | ) | (29,476 | ) | ||
| Average tangible equity | $ | 188,785 | $ | 152,612 |
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)
| 2024 | |||||
| ASSETS | |||||
| Cash and due from banks | 31,729 | **** | $ | 19,519 | |
| Interest-bearing deposits with banks | 43,678 | **** | 92,444 | ||
| Cash and cash equivalents | 75,407 | **** | 111,963 | ||
| Securities available for sale | 408,742 | **** | 398,374 | ||
| Loans receivable | 1,771,269 | **** | 1,621,448 | ||
| Less: Allowance for credit losses | 20,442 | **** | 18,020 | ||
| Net loans receivable | 1,750,827 | **** | 1,603,428 | ||
| Regulatory stock, at cost | 7,616 | **** | 6,545 | ||
| Bank premises and equipment, net | 20,273 | **** | 18,057 | ||
| Bank owned life insurance | 46,914 | **** | 45,869 | ||
| Foreclosed real estate owned | — | **** | 97 | ||
| Accrued interest receivable | 8,587 | **** | 8,135 | ||
| Deferred tax assets, net | 17,859 | **** | 21,642 | ||
| Goodwill | 29,266 | **** | 29,266 | ||
| Other intangible assets | 136 | **** | 202 | ||
| Other assets | 10,417 | **** | 16,845 | ||
| TOTAL ASSETS | 2,376,044 | **** | $ | 2,260,423 | |
| LIABILITIES | |||||
| Deposits: | |||||
| Non-interest bearing demand | 391,377 | **** | $ | 383,362 | |
| Interest-bearing | 1,613,071 | **** | 1,455,636 | ||
| Total deposits | 2,004,448 | **** | 1,838,998 | ||
| Short-term borrowings | — | **** | 60,055 | ||
| Other borrowings | 118,590 | **** | 151,179 | ||
| Accrued interest payable | 13,864 | **** | 11,737 | ||
| Other liabilities | 18,435 | **** | 17,241 | ||
| TOTAL LIABILITIES | 2,155,337 | **** | 2,079,210 | ||
| 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: 2025: 9,489,398<br>shares, 2024: 8,310,847 shares | 949 | **** | 831 | ||
| Surplus | 126,785 | **** | 97,893 | ||
| Retained earnings | 127,865 | **** | 137,285 | ||
| Treasury stock, at cost: 2025: 229,979 shares, 2024: 200,690 shares | (6,208 | ) | (5,397 | ) | |
| Accumulated other comprehensive loss | (28,684 | ) | (49,399 | ) | |
| TOTAL STOCKHOLDERS’ EQUITY | 220,707 | **** | 181,213 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 2,376,044 | **** | $ | 2,260,423 |
All values are in US Dollars.
NORWOOD FINANCIAL CORP
Consolidated Statements of Income
(dollars inthousands, except per share data)
(unaudited)
| Three Months EndedMarch 31, | |||||
|---|---|---|---|---|---|
| 2025 | 2024 | ||||
| INTEREST INCOME | |||||
| Loans receivable, including fees | $ | 25,988 | $ | 23,681 | |
| Securities | **** | 3,870 | 2,526 | ||
| Other | **** | 226 | 731 | ||
| Total Interest income | **** | 30,084 | 26,938 | ||
| INTEREST EXPENSE | |||||
| Deposits | **** | 10,748 | 10,110 | ||
| Short-term borrowings | **** | 458 | 336 | ||
| Other borrowings | **** | 1,021 | 1,782 | ||
| Total Interest expense | **** | 12,227 | 12,228 | ||
| NET INTEREST INCOME | **** | 17,857 | 14,710 | ||
| PROVISION FOR (RELEASE OF) CREDIT LOSSES | $ | 857 | $ | (624 | ) |
| NET INTEREST INCOME AFTER PROVISION FOR (RELEASE OF) CREDIT LOSSES | **** | 17,000 | 15,334 | ||
| OTHER INCOME | |||||
| Service charges and fees | **** | 1,513 | 1,343 | ||
| Income from fiduciary activities | **** | 325 | 238 | ||
| Gains on sales of loans, net | **** | 47 | 6 | ||
| Earnings and proceeds on life insurance policies | **** | 286 | 268 | ||
| Other | **** | 180 | 151 | ||
| Total other income | **** | 2,351 | 2,006 | ||
| OTHER EXPENSES | |||||
| Salaries and employee benefits | **** | 6,472 | 6,135 | ||
| Occupancy, furniture and equipment | **** | 1,378 | 1,261 | ||
| Data processing and related operations | **** | 1,085 | 1,022 | ||
| Taxes, other than income | **** | 192 | 93 | ||
| Professional fees | **** | 659 | 585 | ||
| FDIC Insurance assessment | **** | 406 | 361 | ||
| Foreclosed real estate | **** | 4 | 21 | ||
| Amortization of intangibles | **** | 15 | 19 | ||
| Other | **** | 1,853 | 2,235 | ||
| Total other expenses | 12,064 | 11,732 | |||
| INCOME BEFORE TAX EXPENSE | **** | 7,287 | 5,608 | ||
| INCOME TAX EXPENSE | **** | 1,514 | 1,175 | ||
| NET INCOME | $ | 5,773 | $ | 4,433 | |
| Basic earnings per share | $ | 0.63 | $ | 0.55 | |
| Diluted earnings per share | $ | 0.63 | $ | 0.55 |
NORWOOD FINANCIAL CORP
Financial Highlights (Unaudited)
(dollars inthousands, except per share data)
| For the Three Months Ended March 31 | 2025 | 2024 | ||||
|---|---|---|---|---|---|---|
| Net interest income | $ | 17,857 | **** | $ | 14,710 | |
| Net income | **** | 5,773 | **** | 4,433 | ||
| Net interest spread (fully taxable equivalent) | **** | 2.61 | % | 2.08 | % | |
| Net interest margin (fully taxable equivalent) | **** | 3.30 | % | 2.80 | % | |
| Return on average assets | **** | 1.01 | % | 0.80 | % | |
| Return on average equity | **** | 10.73 | % | 9.79 | % | |
| Return on average tangible equity | **** | 12.40 | % | 11.68 | % | |
| Basic earnings per share | $ | 0.63 | **** | $ | 0.55 | |
| Diluted earnings per share | $ | 0.63 | **** | $ | 0.55 | |
| As of March 31 | 2025 | 2024 | ||||
| Total assets | $ | 2,376,044 | **** | $ | 2,260,423 | |
| Total loans receivable | **** | 1,771,269 | **** | 1,621,448 | ||
| Allowance for credit losses | **** | 20,442 | **** | 18,020 | ||
| Total deposits | **** | 2,004,448 | **** | 1,838,998 | ||
| Stockholders’ equity | **** | 220,707 | **** | 181,213 | ||
| Trust assets under management | **** | 198,761 | **** | 202,020 | ||
| Book value per share | $ | 23.84 | **** | $ | 22.34 | |
| Tangible book value per share | $ | 20.66 | **** | $ | 18.71 | |
| Equity to total assets | **** | 9.29 | % | 8.02 | % | |
| Allowance to total loans receivable | **** | 1.15 | % | 1.11 | % | |
| Nonperforming loans to total loans | **** | 0.45 | % | 0.23 | % | |
| Nonperforming assets to total assets | **** | 0.33 | % | 0.17 | % |
NORWOOD FINANCIAL CORP
Consolidated Balance Sheets (unaudited)
(dollars inthousands)
| March 31<br>2025 | December 31<br>2024 | September 30<br>2024 | June 30<br>2024 | March 31<br>2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||||
| Cash and due from banks | $ | 31,729 | $ | 27,562 | $ | 47,072 | $ | 29,903 | $ | 19,519 |
| Interest-bearing deposits with banks | 43,678 | 44,777 | 35,808 | 39,492 | 92,444 | |||||
| Cash and cash equivalents | 75,407 | 72,339 | 82,880 | 69,395 | 111,963 | |||||
| Securities available for sale | 408,742 | 397,846 | 396,891 | 397,578 | 398,374 | |||||
| Loans receivable | 1,771,269 | 1,713,638 | 1,675,139 | 1,641,356 | 1,621,448 | |||||
| Less: Allowance for credit losses | 20,442 | 19,843 | 18,699 | 17,807 | 18,020 | |||||
| Net loans receivable | 1,750,827 | 1,693,795 | 1,656,440 | 1,623,549 | 1,603,428 | |||||
| Regulatory stock, at cost | 7,616 | 13,366 | 6,329 | 6,443 | 6,545 | |||||
| Bank owned life insurance | 46,914 | 46,657 | 46,382 | 46,121 | 45,869 | |||||
| Bank premises and equipment, net | 20,273 | 19,657 | 18,503 | 18,264 | 18,057 | |||||
| Foreclosed real estate owned | — | — | — | — | 97 | |||||
| Goodwill and other intangibles | 29,402 | 29,418 | 29,433 | 29,449 | 29,468 | |||||
| Other assets | 36,863 | 44,384 | 42,893 | 44,517 | 46,622 | |||||
| TOTAL ASSETS | $ | 2,376,044 | $ | 2,317,462 | $ | 2,279,751 | $ | 2,235,316 | $ | 2,260,423 |
| LIABILITIES | ||||||||||
| Deposits: | ||||||||||
| Non-interest bearing demand | $ | 391,377 | $ | 381,479 | $ | 420,967 | $ | 391,849 | $ | 383,362 |
| Interest-bearing deposits | 1,613,071 | 1,477,684 | 1,434,284 | 1,419,323 | 1,455,636 | |||||
| Total deposits | 2,004,448 | 1,859,163 | 1,855,251 | 1,811,172 | 1,838,998 | |||||
| Borrowings | 118,590 | 214,862 | 197,412 | 210,422 | 211,234 | |||||
| Other liabilities | 32,299 | 29,929 | 31,434 | 31,534 | 28,978 | |||||
| TOTAL LIABILITIES | 2,155,337 | 2,103,954 | 2,084,097 | 2,053,128 | 2,079,210 | |||||
| STOCKHOLDERS’ EQUITY | 220,707 | 213,508 | 195,654 | 182,188 | 181,213 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 2,376,044 | $ | 2,317,462 | $ | 2,279,751 | $ | 2,235,316 | $ | 2,260,423 |
NORWOOD FINANCIAL CORP
Consolidated Statements of Income (unaudited)
(dollarsin thousands, except per share data)
| Three months ended | March 31<br>2025 | December 31<br>2024 | September 30<br>2024 | June 30<br>2024 | March 31<br>2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| INTEREST INCOME | |||||||||||||||
| Loans receivable, including fees | $ | 25,988 | $ | 26,122 | $ | 25,464 | $ | 24,121 | $ | 23,681 | |||||
| Securities | 3,870 | 2,789 | 2,526 | 2,584 | 2,526 | ||||||||||
| Other | 226 | 574 | 497 | 966 | 731 | ||||||||||
| Total interest income | 30,084 | 29,485 | 28,487 | 27,671 | 26,938 | ||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 10,748 | 10,984 | 10,553 | 10,687 | 10,110 | ||||||||||
| Borrowings | 1,479 | 1,876 | 2,003 | 2,059 | 2,118 | ||||||||||
| Total interest expense | 12,227 | 12,860 | 12,556 | 12,746 | 12,228 | ||||||||||
| NET INTEREST INCOME | 17,857 | 16,625 | 15,931 | 14,925 | 14,710 | ||||||||||
| PROVISION FOR (RELEASE OF) CREDIT LOSSES | 857 | 1,604 | 1,345 | 347 | (624 | ) | |||||||||
| NET INTEREST INCOME AFTER (RELEASE OF) PROVISION FOR CREDIT LOSSES | 17,000 | 15,021 | 14,586 | 14,578 | 15,334 | ||||||||||
| OTHER INCOME | |||||||||||||||
| Service charges and fees | 1,513 | 1,595 | 1,517 | 1,504 | 1,343 | ||||||||||
| Income from fiduciary activities | 325 | 224 | 256 | 225 | 238 | ||||||||||
| Net realized (losses) gains on sales of securities | — | (19,962 | ) | — | — | — | |||||||||
| Gains on sales of loans, net | 47 | 50 | 103 | 36 | 6 | ||||||||||
| Gains on sales of foreclosed real estate owned | — | — | — | 32 | — | ||||||||||
| Earnings and proceeds on life insurance policies | 286 | 275 | 261 | 253 | 268 | ||||||||||
| Other | 180 | 159 | 158 | 157 | 151 | ||||||||||
| Total other income | 2,351 | (17,659 | ) | 2,295 | 2,207 | 2,006 | |||||||||
| OTHER EXPENSES | |||||||||||||||
| Salaries and employee benefits | 6,472 | 6,690 | 6,239 | 5,954 | 6,135 | ||||||||||
| Occupancy, furniture and equipment, net | 1,378 | 1,291 | 1,269 | 1,229 | 1,261 | ||||||||||
| Foreclosed real estate | 4 | 9 | 9 | 15 | 21 | ||||||||||
| FDIC insurance assessment | 406 | 335 | 339 | 309 | 361 | ||||||||||
| Other | 3,804 | 5,094 | 4,175 | 3,937 | 3,954 | ||||||||||
| Total other expenses | 12,064 | 13,419 | 12,031 | 11,444 | 11,732 | ||||||||||
| INCOME BEFORE TAX (BENEFIT) EXPENSE | 7,287 | (16,057 | ) | 4,850 | 5,341 | 5,608 | |||||||||
| INCOME TAX (BENEFIT) EXPENSE | 1,514 | (3,406 | ) | 1,006 | 1,128 | 1,175 | |||||||||
| NET (LOSS) INCOME | $ | 5,773 | $ | (12,651 | ) | $ | 3,844 | $ | 4,213 | $ | 4,433 | ||||
| Basic (loss) earnings per share | $ | 0.63 | $ | (1.54 | ) | $ | 0.48 | $ | 0.52 | $ | 0.55 | ||||
| Diluted (loss) earnings per share | $ | 0.63 | $ | (1.54 | ) | $ | 0.48 | $ | 0.52 | $ | 0.55 | ||||
| Book Value per share | $ | 23.84 | $ | 23.02 | $ | 24.18 | $ | 22.52 | $ | 22.34 | |||||
| Tangible Book Value per share | 20.66 | 19.85 | 20.54 | 18.88 | 18.71 | ||||||||||
| Return on average assets (annualized) | 1.01 | % | -2.19 | % | 0.68 | % | 0.75 | % | 0.80 | % | |||||
| Return on average equity (annualized) | 10.73 | % | -26.08 | % | 8.09 | % | 9.41 | % | 9.79 | % | |||||
| Return on average tangible equity (annualized) | 12.40 | % | -30.77 | % | 9.58 | % | 11.26 | % | 11.68 | % | |||||
| Net interest spread (fte) | 2.61 | % | 2.31 | % | 2.23 | % | 2.06 | % | 2.08 | % | |||||
| Net interest margin (fte) | 3.30 | % | 3.04 | % | 2.99 | % | 2.80 | % | 2.80 | % | |||||
| Allowance for credit losses to total loans | 1.15 | % | 1.16 | % | 1.12 | % | 1.08 | % | 1.11 | % | |||||
| Net charge-offs to average loans (annualized) | 0.07 | % | 0.12 | % | 0.08 | % | 0.13 | % | 0.08 | % | |||||
| Nonperforming loans to total loans | 0.45 | % | 0.46 | % | 0.47 | % | 0.47 | % | 0.23 | % | |||||
| Nonperforming assets to total assets | 0.33 | % | 0.34 | % | 0.35 | % | 0.34 | % | 0.17 | % |
NORWOOD FINANCIAL CORP
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)
| For the Quarter Ended | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||||||||||||||||||
| 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 | $ | 20,802 | $ | 226 | 4.41 | % | $ | 46,629 | $ | 574 | 4.90 | % | $ | 53,930 | $ | 730 | 5.44 | % | |||||||||
| Securities available for sale: | |||||||||||||||||||||||||||
| Taxable | 408,427 | 3,623 | 3.60 | 404,777 | 2,434 | 2.39 | 402,275 | 2,147 | 2.15 | ||||||||||||||||||
| Tax-exempt (1) | 44,242 | 312 | 2.86 | 65,628 | 449 | 2.72 | 69,880 | 481 | 2.77 | ||||||||||||||||||
| Total securities available for sale (1) | 452,669 | 3,935 | 3.53 | 470,405 | 2,883 | 2.44 | 472,155 | 2,628 | 2.24 | ||||||||||||||||||
| Loans receivable (1) (4) (5) | 1,743,572 | 26,120 | 6.08 | 1,690,650 | 26,246 | 6.18 | 1,612,106 | 23,775 | 5.93 | ||||||||||||||||||
| Total interest-earning assets | 2,217,043 | 30,281 | 5.54 | 2,207,684 | 29,703 | 5.35 | 2,138,191 | 27,133 | 5.10 | ||||||||||||||||||
| Non-interest earning assets: | |||||||||||||||||||||||||||
| Cash and due from banks | 28,705 | 27,283 | 24,593 | ||||||||||||||||||||||||
| Allowance for credit losses | (20,154 | ) | (18,741 | ) | (19,096 | ) | |||||||||||||||||||||
| Other assets | 93,131 | 83,506 | 73,692 | ||||||||||||||||||||||||
| Total non-interest earning assets | 101,682 | 92,048 | 79,189 | ||||||||||||||||||||||||
| Total Assets | $ | 2,318,725 | $ | 2,299,732 | $ | 2,217,380 | |||||||||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||
| Interest-bearing demand and money market | $ | 546,884 | $ | 2,801 | 2.08 | $ | 528,330 | $ | 3,017 | 2.27 | $ | 449,825 | $ | 2,311 | 2.07 | ||||||||||||
| Savings | 211,905 | 142 | 0.27 | 209,362 | 162 | 0.31 | 235,545 | 250 | 0.43 | ||||||||||||||||||
| Time | 793,803 | 7,805 | 3.99 | 764,819 | 7,805 | 4.06 | 725,199 | 7,549 | 4.19 | ||||||||||||||||||
| Total interest-bearing deposits | 1,552,592 | 10,748 | 2.81 | 1,502,511 | 10,984 | 2.91 | 1,410,569 | 10,110 | 2.88 | ||||||||||||||||||
| Short-term borrowings | 44,297 | 458 | 4.19 | 46,267 | 348 | 2.99 | 57,997 | 336 | 2.33 | ||||||||||||||||||
| Other borrowings | 93,549 | 1,021 | 4.43 | 133,620 | 1,528 | 4.55 | 155,498 | 1,782 | 4.61 | ||||||||||||||||||
| Total interest-bearing liabilities | 1,690,438 | 12,227 | 2.93 | 1,682,398 | 12,860 | 3.04 | 1,624,064 | 12,228 | 3.03 | ||||||||||||||||||
| Non-interest bearing liabilities: | |||||||||||||||||||||||||||
| Demand deposits | 380,544 | 394,001 | 386,066 | ||||||||||||||||||||||||
| Other liabilities | 29,549 | 30,352 | 25,162 | ||||||||||||||||||||||||
| Total non-interest bearing liabilities | 410,093 | 424,353 | 411,228 | ||||||||||||||||||||||||
| Stockholders’ equity | 218,194 | 192,981 | 182,088 | ||||||||||||||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 2,318,725 | $ | 2,299,732 | $ | 2,217,380 | |||||||||||||||||||||
| Net interest income/spread (tax equivalent basis) | 18,054 | 2.61 | % | 16,843 | 2.31 | % | 14,905 | 2.08 | % | ||||||||||||||||||
| Tax-equivalent basis adjustment | (197 | ) | (218 | ) | (195 | ) | |||||||||||||||||||||
| Net interest income | $ | 17,857 | $ | 16,625 | $ | 14,710 | |||||||||||||||||||||
| Net interest margin (tax equivalent basis) | 3.30 | % | 3.04 | % | 2.80 | % | |||||||||||||||||||||
| (1) | Interest and yields are presented on a tax-equivalent basis using a<br>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.<br> | ||||||||||||||||||||||||||
| --- | --- | ||||||||||||||||||||||||||
| (5) | Loan yields include the effect of amortization of deferred fees, net of costs. | ||||||||||||||||||||||||||
| --- | --- |