Norwood Financial (NWFL) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2025 was $5.8 million, a 30.2$4.4 million in Q1 2024[5] - Fully diluted earnings per share increased to $0.63, up 14.5$0.55 in the same period last year[3] - Net income increased to $5,773,000, up from$4,433,000 year-over-year, reflecting a growth of about 30.2%[14] - The company reported a net income of $5,773 thousand for Q1 2025, compared to a net loss of$12,651 thousand in Q4 2024[16] - Basic earnings per share improved to $0.63 from$0.55, representing a growth of 14.55%[14] - Basic earnings per share for Q1 2025 was $0.63, compared to a loss per share of$1.54 in Q4 2024[16] Interest Income and Margin - Net interest income rose to $17.9 million, a 21.4$14.7 million in Q1 2024[5] - Net interest income for the three months ended March 31, 2025, was $17,857,000, compared to$14,710,000 for the same period in 2024, representing a growth of approximately 21.5%[14] - The net interest margin improved to 3.30%, up 50 basis points from 2.80% in Q1 2024[5] - The net interest margin improved to 2.61% from 2.08%, indicating a significant enhancement in profitability[14] - The company maintained a net interest margin (fte) of 3.30% in Q1 2025, up from 3.04% in Q4 2024[16] - The net interest margin (tax equivalent basis) improved to 3.30% for the quarter ended March 31, 2025, compared to 3.04% in the previous quarter[17] Asset and Loan Growth - Loans grew at an annualized rate of 13.5% during the first quarter, reaching $1.771 billion[3] - Total loans receivable increased to$1,771,269,000, compared to $1,614,448,000, reflecting a growth of about 9.7$2.376 billion, reflecting a 5.07% increase from $2.260 billion a year earlier[5] - Total assets as of March 31, 2025, were$2,376,044,000, up from $2,260,423,000, marking a growth of approximately 5.1$2,217,043 thousand, up from $2,207,684 thousand in the previous quarter[17] - Loans receivable reached$1,743,572 thousand with a yield of 6.08%, slightly down from 6.18% in the previous quarter[17] Deposits and Liabilities - Total deposits increased by 9.0% year-over-year, totaling $2.004 billion as of March 31, 2025[5] - Total deposits reached$2,004,448,000, up from $1,838,998,000, indicating an increase of approximately 9.0$2,004,448 thousand, a rise of 7.8% from $1,859,163 thousand at December 31, 2024[15] - Total interest-bearing liabilities were$1,690,438 thousand, with an average rate of 2.93%, down from 3.04% in the previous quarter[17] Efficiency and Asset Quality - The efficiency ratio for Q1 2025 was 59.7%, significantly improved from 70.6% in Q1 2024[5] - Return on average assets increased to 1.01%, a rise of 21 basis points compared to the previous year[5] - Return on average assets rose to 1.01%, compared to 0.80% in the previous year, showing an increase of 26.25%[14] - Return on average assets (annualized) improved to 1.01% in Q1 2025, compared to -2.19% in Q4 2024[16] - Non-performing loans to total loans ratio decreased to 0.45% from 0.23%, showing improved asset quality[14] Risk Management - The allowance for credit losses was $20,442,218, compared to$18,002,000, indicating a proactive approach to risk management[14] - The allowance for credit losses to total loans ratio was 1.15% as of March 31, 2025, slightly down from 1.16% at December 31, 2024[16] - The allowance for credit losses was $20,154 thousand, up from$18,741 thousand in the previous quarter[17]