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Norwood Financial (NWFL) - 2024 Q4 - Annual Results
NWFLNorwood Financial (NWFL)2025-01-27 23:14

Financial Performance - Norwood Financial Corp reported a net loss of 12.7millionforQ42024,adecreaseof12.7 million for Q4 2024, a decrease of 13 million compared to the same period last year, primarily due to a one-time 20millionlossonthesaleofsecurities[6].−AdjustednetincomeforQ42024was20 million loss on the sale of securities[6]. - Adjusted net income for Q4 2024 was 3.1 million, significantly higher than 355thousandinQ42023[5].−ThenetlossforthetwelvemonthsendedDecember31,2024,was355 thousand in Q4 2023[5]. - The net loss for the twelve months ended December 31, 2024, was (160) thousand, a significant decrease from the net income of 16,759thousandin2023[15].−Basiclosspersharefor2024was16,759 thousand in 2023[15]. - Basic loss per share for 2024 was (0.02), compared to earnings per share of 2.08in2023[15].−ThenetlossforthethreemonthsendedDecember31,2024,was2.08 in 2023[15]. - The net loss for the three months ended December 31, 2024, was 12,651,000, compared to a net loss of 3,559,000forthesameperiodin2023,indicatingasignificantincreaseinlosses[16].−BasiclosspershareforQ42024was3,559,000 for the same period in 2023, indicating a significant increase in losses[16]. - Basic loss per share for Q4 2024 was 1.54, compared to earnings of 0.04pershareinthesamequarterlastyear[18].IncomeandExpenses−NetinterestincomeforQ42024was0.04 per share in the same quarter last year[18]. Income and Expenses - Net interest income for Q4 2024 was 16.6 million, an increase of 8.7% from 15.3millioninQ42023[2].−Totalnon−interestexpensesroseto15.3 million in Q4 2023[2]. - Total non-interest expenses rose to 48.6 million in 2024, up from 43.5millionin2023,mainlyduetohighercompensationanddataprocessingcosts[6].−Otherincomeshowedasignificantdecline,resultinginatotalof43.5 million in 2023, mainly due to higher compensation and data processing costs[6]. - Other income showed a significant decline, resulting in a total of (11,151) thousand for the twelve months ended December 31, 2024, compared to 8,124thousandin2023[15].−Totalotherexpensesincreasedto8,124 thousand in 2023[15]. - Total other expenses increased to 48,625 thousand in 2024, up from 43,497thousandin2023,anincreaseof11.843,497 thousand in 2023, an increase of 11.8%[15]. Assets and Liabilities - Total assets increased to 2.317 billion as of December 31, 2024, compared to 2.201billionattheendof2023[6].−Totalassetsincreasedto2.201 billion at the end of 2023[6]. - Total assets increased to 2,317,462 thousand in 2024 from 2,201,079thousandin2023,representingagrowthof5.32,201,079 thousand in 2023, representing a growth of 5.3%[14]. - Net loans receivable rose to 1,693,795 thousand in 2024, up from 1,584,650thousandin2023,anincreaseof6.91,584,650 thousand in 2023, an increase of 6.9%[14]. - Total deposits grew to 1,859,163 thousand in 2024, compared to 1,795,159thousandin2023,reflectinga3.61,795,159 thousand in 2023, reflecting a 3.6% increase[14]. - The allowance for credit losses was 19,843,000, compared to 18,968,000inthepreviousyear,indicatingaslightincreaseinprovisions[16].InterestIncomeandMargin−InterestincomeforthetwelvemonthsendedDecember31,2024,was18,968,000 in the previous year, indicating a slight increase in provisions[16]. Interest Income and Margin - Interest income for the twelve months ended December 31, 2024, was 112,580 thousand, up 17.8% from 95,540thousandin2023[15].−Netinterestincomeafterprovisionforcreditlossesincreasedto95,540 thousand in 2023[15]. - Net interest income after provision for credit losses increased to 59,518 thousand in 2024, compared to 56,519thousandin2023,ariseof5.356,519 thousand in 2023, a rise of 5.3%[15]. - Total interest income for Q4 2024 was 29,485 thousand, up 12.5% from 26,085thousandinQ42023[18].−Netinterestincomeafterprovisionforcreditlosseswas26,085 thousand in Q4 2023[18]. - Net interest income after provision for credit losses was 15,021 thousand, compared to $9,177 thousand in the same quarter last year, reflecting a year-over-year increase of 63.5%[18]. - The net interest margin improved to 3.04% in Q4 2024, up 11 basis points from 2.93% in Q4 2023[6]. Capital and Equity - Tangible common equity increased to 8.05% as of December 31, 2024, compared to 6.98% at the end of 2023[6]. - The equity to total assets ratio improved to 9.21% from 8.23% year-over-year, suggesting a stronger capital position[16]. Future Outlook - The company completed a capital raise to reposition its investment portfolio, which is expected to improve future yields[3]. - The company anticipates that the repositioned portfolio will enhance future performance amid changing interest rates[2].