Financial Performance - For the three months ended September 30, 2024, net income totaled $3,844,000, a decrease from $4,119,000 in the same period of 2023, primarily due to a $463,000 increase in the provision for credit losses [139]. - Earnings per share for the three months ended September 30, 2024 were $0.48, compared to $0.51 for the same period in 2023 [139]. - 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, with earnings per share decreasing from $2.03 to $1.55 [151]. - Other income for Q3 2024 totaled $2,295,000, slightly down from $2,306,000 in Q3 2023, primarily due to a decrease in life insurance earnings [145]. - Other income increased to $6.5 million for the nine months ended September 30, 2024, up 8.4% from $6.0 million in 2023, driven by higher service charges and gains on sales of securities [156]. Asset and Loan Growth - Total assets increased to $2.280 billion as of September 30, 2024, from $2.201 billion as of December 31, 2023, primarily due to a $71.5 million increase in gross loans outstanding [115]. - Loans receivable totaled $1.656 billion at September 30, 2024, reflecting a $71.8 million increase from $1.585 billion at December 31, 2023, driven by increases in commercial real estate, residential real estate, and consumer loans [117]. - Average loans increased by $62,447,000 during the three months ended September 30, 2024, while average loans rose by $78.9 million during the nine months ended September 30, 2024 [142][154]. Credit Quality - The allowance for credit losses was $18.699 million as of September 30, 2024, representing 1.12% of total loans, a slight decrease from $18.968 million or 1.18% at December 31, 2023 [118]. - Non-performing loans totaled $7.888 million or 0.47% of total loans at September 30, 2024, compared to $7.622 million or 0.48% at December 31, 2023 [119]. - The provision for credit losses was $1,345,000 for Q3 2024, up from $882,000 in Q3 2023, with a net charge-off of $323,000 compared to $2,349,000 in the prior year [144]. - The allowance for credit losses related to loans receivable was 1.12% of loans receivable as of September 30, 2024, representing 237% of non-performing loans [144]. Capital and Liquidity - Total stockholders' equity increased to $195.7 million as of September 30, 2024, from $181.1 million at December 31, 2023, due to net income and an increase in the fair value of securities [125]. - The Company maintained total liquidity of $479.8 million as of September 30, 2024, representing 21.0% of total assets, slightly down from 21.5% as of December 31, 2023 [132]. - The maximum borrowing capacity with the Federal Home Loan Bank was approximately $678.03 million as of September 30, 2024, with $84.96 million outstanding [134]. - The Company is in compliance with all applicable regulatory capital requirements as of September 30, 2024 [130]. Interest Income and Expense - Net interest income on a fully taxable equivalent basis for the three months ended September 30, 2024 was $16,138,000, an increase of $914,000 from the comparable period in 2023 [141]. - Total interest income for the three months ended September 30, 2024 was $28,694,000, with a yield on average earning assets of 5.31%, compared to $24,693,000 and 4.73% for the same period in 2023 [142]. - Interest expense for the three months ended September 30, 2024 totaled $12,556,000, at an average cost of 3.09%, compared to $9,469,000 at 2.47% for the same period in 2023 [143]. - The net interest margin for the nine months ended September 30, 2024, was 2.87%, down from 3.10% in the same period of 2023 [153]. Tax Expense - Income tax expense for Q3 2024 was $1,006,000, with an effective tax rate of 20.7%, compared to $1,068,000 and 20.6% in Q3 2023 [147]. - Income tax expense totaled $3,308,000 for an effective tax rate of 20.9% for the nine months ended September 30, 2024, compared to $4,289,000 at a rate of 20.7% for the same period in 2023 [158].
Norwood Financial (NWFL) - 2024 Q3 - Quarterly Report