Financial Performance - Norwood Financial Corp reported a net loss of $12.7 million for Q4 2024, a decrease of $13 million compared to the same period last year, primarily due to a one-time $20 million loss on the sale of securities[6]. - Adjusted net income for Q4 2024 was $3.1 million, significantly higher than $355 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 $16,759 thousand in 2023[15]. - Basic loss per share for 2024 was $(0.02), compared to earnings per share of $2.08 in 2023[15]. - The net loss for the three months ended December 31, 2024, was $12,651,000, compared to a net loss of $3,559,000 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 $0.04 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 $15.3 million in Q4 2023[2]. - Total non-interest expenses rose to $48.6 million in 2024, up from $43.5 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 $8,124 thousand in 2023[15]. - Total other expenses increased to $48,625 thousand in 2024, up from $43,497 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 $2.201 billion at the end of 2023[6]. - Total assets increased to $2,317,462 thousand in 2024 from $2,201,079 thousand in 2023, representing a growth of 5.3%[14]. - Net loans receivable rose to $1,693,795 thousand in 2024, up from $1,584,650 thousand in 2023, an increase of 6.9%[14]. - Total deposits grew to $1,859,163 thousand in 2024, compared to $1,795,159 thousand in 2023, reflecting a 3.6% increase[14]. - The allowance for credit losses was $19,843,000, compared to $18,968,000 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 $95,540 thousand in 2023[15]. - Net interest income after provision for credit losses increased to $59,518 thousand in 2024, compared to $56,519 thousand in 2023, a rise of 5.3%[15]. - Total interest income for Q4 2024 was $29,485 thousand, up 12.5% from $26,085 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].
Norwood Financial (NWFL) - 2024 Q4 - Annual Results