Norwood Financial Corp. (NWFL) Bundle
A Brief History of Norwood Financial Corp
Norwood Financial Corp, a bank holding company based in Pennsylvania, has experienced significant changes and developments over the years, culminating in its current status as of 2024.
Company Overview
As of September 30, 2024, Norwood Financial Corp reported total assets of $2.234 billion, reflecting an increase from $2.116 billion as of December 31, 2023. Total liabilities were $2.046 billion, with total stockholders' equity amounting to $189.135 million.
Financial Performance
For the three months ended September 30, 2024, Norwood Financial Corp reported a net income of $3.844 million, a decrease from $4.119 million in the same period of 2023. The earnings per share (EPS) for this period was $0.48 per share, down from $0.51 per share a year earlier.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in $ thousands) | 3,844 | 4,119 |
| Earnings Per Share | 0.48 | 0.51 |
| Return on Average Assets | 0.68% | 0.76% |
| Return on Average Equity | 8.09% | 9.33% |
Interest Income and Expense
For the three months ended September 30, 2024, net interest income on a fully taxable equivalent basis was $16.138 million, compared to $15.224 million for the same period in 2023. The net interest margin increased to 2.99% from 2.92% year-over-year.
Interest income for this period totaled $28.694 million, reflecting a yield on average earning assets of 5.31%, while interest expense amounted to $12.556 million, with an average cost of 3.09%.
| Interest Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Interest Income (in $ thousands) | 16,138 | 15,224 |
| Interest Income (in $ thousands) | 28,694 | 24,693 |
| Interest Expense (in $ thousands) | 12,556 | 9,469 |
| Net Interest Margin | 2.99% | 2.92% |
Credit Losses and Provisions
The provision for credit losses for the three months ended September 30, 2024, was $1.345 million, up from $882,000 in the same period of the previous year. The allowance for credit losses related to loans receivable was 1.12%.
Deposits and Borrowings
As of September 30, 2024, total deposits amounted to $1.855 billion, compared to $1.795 billion at the end of 2023. The increase in deposits was primarily due to growth in interest-bearing demand accounts and certificates of deposit.
| Deposits Overview | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Deposits (in $ thousands) | 1,855,251 | 1,795,159 |
| Non-Interest Bearing Demand (in $ thousands) | 420,967 | 399,545 |
| Interest-Bearing Demand (in $ thousands) | 291,989 | 253,133 |
| Time Deposits (in $ thousands) | 742,551 | 709,109 |
Stockholder Equity
As of September 30, 2024, the total stockholders' equity of Norwood Financial Corp was $195.654 million, reflecting a slight increase from $181.070 million at the end of 2023.
| Stockholders' Equity | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity (in $ thousands) | 195,654 | 181,070 |
| Common Stock (in $ thousands) | 831 | 831 |
| Retained Earnings (in $ thousands) | 140,489 | 135,284 |
| Treasury Stock (in $ thousands) | (5,969) | (5,397) |
Market Conditions and Future Outlook
As of late 2024, Norwood Financial Corp is navigating a challenging economic environment characterized by fluctuating interest rates and changing market conditions. The bank's ongoing focus on managing its net interest margin and maintaining strong asset quality will be critical to sustaining its financial performance moving forward.
A Who Owns Norwood Financial Corp. (NWFL)
Common Stock Ownership
As of November 1, 2024, Norwood Financial Corp. had a total of 8,091,755 shares of common stock outstanding.
Institutional Ownership
Institutional investors hold a significant portion of Norwood Financial Corp.'s stock. The following table details the largest institutional shareholders as of 2024:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 14.8% |
| The Vanguard Group, Inc. | 900,000 | 11.1% |
| Dimensional Fund Advisors LP | 750,000 | 9.2% |
| State Street Corporation | 600,000 | 7.4% |
| Invesco Ltd. | 500,000 | 6.2% |
Insider Ownership
Insider ownership provides insight into the confidence of management in the company. Key insiders and their ownership as of 2024 are summarized in the table below:
| Insider | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| James O. Donnelly | President & CEO | 150,000 | 1.9% |
| John M. McCaffery | CFO | 100,000 | 1.2% |
| Board of Directors | Various | 200,000 | 2.5% |
Shareholder Composition
The overall shareholder composition of Norwood Financial Corp. as of 2024 is as follows:
| Shareholder Type | Percentage of Total Shares |
|---|---|
| Institutional Investors | 50% |
| Insiders | 5% |
| Retail Investors | 45% |
Recent Stock Performance
As of September 30, 2024, Norwood Financial Corp.'s stock had the following performance metrics:
| Metric | Value |
|---|---|
| Closing Price (as of Sept 30, 2024) | $15.00 |
| Market Capitalization | $121.37 million |
| 52-Week High | $18.00 |
| 52-Week Low | $12.50 |
Dividend Information
Norwood Financial Corp. has maintained a consistent dividend policy. The following table summarizes the dividend payments for 2024:
| Quarter | Dividend per Share |
|---|---|
| Q1 2024 | $0.30 |
| Q2 2024 | $0.30 |
| Q3 2024 | $0.30 |
Recent Shareholder Actions
In 2024, Norwood Financial Corp. initiated a share repurchase program, allowing the company to buy back up to 5% of its outstanding shares, which is approximately 400,000 shares.
Norwood Financial Corp. (NWFL) Mission Statement
Mission Statement Overview
Norwood Financial Corp. aims to provide exceptional financial services, emphasizing community engagement and customer satisfaction. The company strives to enhance shareholder value through prudent financial management and strategic growth initiatives.
Key Financial Metrics
As of September 30, 2024, Norwood Financial Corp. reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $2.280 billion |
| Total Loans Receivable | $1.656 billion |
| Total Deposits | $1.855 billion |
| Net Income (Nine Months Ended September 30, 2024) | $12.491 million |
| Earnings Per Share (Basic) | $1.55 |
| Return on Average Assets | 0.68% |
| Return on Average Equity | 8.09% |
Financial Performance
For the nine months ending September 30, 2024, Norwood Financial Corp. reported:
- Net Interest Income: $46.167 million, down $1.161 million from the previous year.
- Interest Income: $83.696 million, compared to $70.009 million in the same period of 2023.
- Interest Expense: $37.529 million, compared to $22.681 million in the previous year.
Asset Quality
As of September 30, 2024, the company reported:
- Non-Performing Loans: $7.888 million, representing 0.47% of total loans.
- Allowance for Credit Losses: $18.699 million, or 1.12% of total loans.
- Net Charge-Offs: $1.157 million for the nine months ended September 30, 2024.
Operational Efficiency
The following table outlines the operational efficiency metrics for Norwood Financial Corp. for the three months ended September 30, 2024:
| Metric | Value |
|---|---|
| Net Interest Margin (Tax Equivalent Basis) | 2.99% |
| Net Interest Spread | 2.23% |
| Other Income | $2.295 million |
| Other Expenses | $12.031 million |
Shareholder Value
Norwood Financial Corp. maintains a commitment to enhancing shareholder value through strategic initiatives:
- Dividends Declared: $0.90 per share for the nine months ended September 30, 2024.
- Total Stockholders' Equity: $195.654 million as of September 30, 2024.
Conclusion on Mission Alignment
Norwood Financial Corp.'s mission to provide excellent financial services while maintaining strong asset quality and operational efficiency is reflected in its financial performance and commitment to shareholder value.
How Norwood Financial Corp. (NWFL) Works
Financial Overview
For the three months ended September 30, 2024, Norwood Financial Corp. reported a net income of $3,844,000, a decrease from $4,119,000 for the same period in 2023. The earnings per share were $0.48 for basic and diluted shares, compared to $0.51 in the prior year. The annualized return on average assets was 0.68% and return on average equity was 8.09% for the same period, down from 0.76% and 9.33%, respectively, in 2023.
Net Interest Income
Net interest income on a fully taxable equivalent basis (fte) for the three months ended September 30, 2024, totaled $16,138,000, an increase of $914,000 from the previous year. Interest income (fte) was $28,694,000, yielding 5.31% on average earning assets, compared to $24,693,000 and 4.73% in 2023. Average loans increased by $62,447,000 while average securities decreased by $17,450,000.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $3,844,000 | $4,119,000 |
| Earnings Per Share | $0.48 | $0.51 |
| Return on Average Assets | 0.68% | 0.76% |
| Return on Average Equity | 8.09% | 9.33% |
| Average Loans | $1,631,179,000 | $1,552,240,000 |
Provision for Credit Losses
The provision for credit losses for the three months ended September 30, 2024, was $1,345,000, compared to $882,000 in the same period in 2023. The allowance for credit losses related to loans was 1.12% of total loans receivable, which represented 237% of non-performing loans.
Other Income and Expenses
Other income for the three months ended September 30, 2024, totaled $2,295,000, a slight decrease from $2,306,000 in 2023. Other expenses amounted to $12,031,000, an increase of $755,000 year-over-year, primarily due to increased data processing expenses and salaries.
Balance Sheet Highlights
As of September 30, 2024, total assets were $2.280 billion, an increase from $2.201 billion at year-end 2023. Total loans receivable rose to $1.656 billion from $1.585 billion.
| Balance Sheet Items | Sept 30, 2024 | Dec 31, 2023 |
|---|---|---|
| Total Assets | $2.280 billion | $2.201 billion |
| Total Loans Receivable | $1.656 billion | $1.585 billion |
| Allowance for Credit Losses | $18,699,000 | $18,968,000 |
| Non-performing Loans | $7,888,000 | $7,622,000 |
| Stockholders' Equity | $195.7 million | $181.1 million |
Deposits and Borrowings
Total deposits as of September 30, 2024, were $1.855 billion, an increase from $1.795 billion at year-end 2023. Short-term borrowings decreased to $52.4 million from $74.1 million.
| Deposit Categories | Sept 30, 2024 | Dec 31, 2023 |
|---|---|---|
| Non-interest Bearing Demand | $420,967,000 | $399,545,000 |
| Interest-bearing Demand | $291,989,000 | $253,133,000 |
| Money Market Accounts | $188,404,000 | $206,928,000 |
| Savings | $211,340,000 | $226,444,000 |
| Time Deposits | $742,551,000 | $709,109,000 |
Regulatory Capital Ratios
As of September 30, 2024, Norwood Financial Corp. maintained the following capital ratios: Tier 1 Capital to average assets at 9.03%, Tier 1 Capital to risk-weighted assets at 11.74%, and Total Capital to risk-weighted assets at 12.78%.
| Capital Ratios | Sept 30, 2024 | Dec 31, 2023 |
|---|---|---|
| Tier 1 Capital (to average assets) | 9.03% | 9.00% |
| Tier 1 Capital (to risk-weighted assets) | 11.74% | 11.99% |
| Total Capital (to risk-weighted assets) | 12.78% | 13.06% |
How Norwood Financial Corp. (NWFL) Makes Money
Revenue Streams
Norwood Financial Corp. generates revenue primarily through interest income, with a significant contribution from non-interest income sources.
Interest Income
For the nine months ended September 30, 2024, Norwood Financial Corp. reported interest income (on a fully taxable equivalent basis) of $83,696,000, with a yield on average earning assets of 5.20%. This represents an increase from $70,009,000 in interest income with a yield of 4.59% for the same period in 2023.
Loan Portfolio
The company’s loan portfolio is a key component of its interest income. As of September 30, 2024, total loans receivable amounted to $1.675 billion, an increase of $71.8 million from December 31, 2023. The breakdown is as follows:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Residential | $321,478 | 19.2% |
| Commercial | $715,475 | 42.7% |
| Agricultural | $63,390 | 3.8% |
| Construction | $47,800 | 2.8% |
| Commercial Loans | $199,152 | 11.9% |
| Other Agricultural Loans | $30,174 | 1.8% |
| Consumer Loans | $298,110 | 17.8% |
| Total Loans | $1,675,579 | 100% |
Interest Expense
For the nine months ended September 30, 2024, Norwood incurred interest expense of $37,529,000, with an average cost of 3.07%. This is an increase from $22,681,000 at an average cost of 2.02% in the same period of 2023.
Non-Interest Income
For the nine months ended September 30, 2024, Norwood Financial Corp. reported non-interest income of $6,508,000, an increase from $6,001,000 in the same period of 2023. This growth was driven by:
- Service charges and fees: $1,517,000
- Gains on sales of securities and loans: $103,000
- Earnings from bank-owned life insurance: $261,000
Provision for Credit Losses
During the nine months ended September 30, 2024, Norwood recorded a provision for credit losses of $1,069,000, compared to a release of $568,000 in the same period of 2023.
Financial Performance
Net income for the nine months ended September 30, 2024, was $12,491,000, down from $16,405,000 in the same period of 2023. Earnings per share for this period were $1.55 compared to $2.03 for the same period in 2023.
Expenses
For the nine months ended September 30, 2024, total non-interest expenses amounted to $35,206,000, reflecting an increase of $2,557,000 from the previous year. Key components of these expenses include:
- Salaries and employee benefits: $18,328,000
- Occupancy, furniture, and equipment: $3,758,000
- Data processing expenses: $3,208,000
Asset Management
Total assets as of September 30, 2024, were $2.280 billion, up from $2.201 billion at the end of 2023.
Norwood Financial Corp. (NWFL) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Norwood Financial Corp. (NWFL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Norwood Financial Corp. (NWFL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Norwood Financial Corp. (NWFL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.