Financial Performance - For the three months ended March 31, 2025, net income increased to $5,773,000 from $4,433,000 for the same period in 2024, representing a growth of 30.3%[131]. - Net income for the three months ended March 31, 2025, was $5,773,000, an increase of 30.2% from $4,433,000 for the same period in 2024[132]. - Earnings per share for the three months ended March 31, 2025, were $0.63, compared to $0.55 for the same period in 2024, reflecting a 14.5% increase[131]. - The annualized return on average assets for the three months ended March 31, 2025, was 1.01%, up from 0.80% in the same period of 2024[131]. - The annualized return on average equity for the three months ended March 31, 2025, was 10.73%, compared to 9.79% for the same period in 2024[131]. Loans and Credit Quality - Loans receivable totaled $1.751 billion at March 31, 2025, reflecting a $57.0 million increase from $1.694 billion at December 31, 2024, driven by increases in commercial real estate loans, commercial loans, consumer loans, and residential loans[106]. - The allowance for credit losses was $20.442 million as of March 31, 2025, representing 1.15% of total loans outstanding, compared to $19.843 million or 1.16% at December 31, 2024[107]. - Non-performing loans totaled $7.951 million or 0.45% of total loans as of March 31, 2025, slightly down from $7.874 million or 0.46% at December 31, 2024[108]. - The provision for credit losses was $857,000 for the three months ended March 31, 2025, compared to a release of $624,000 for the same period in 2024[136]. - The allowance for credit losses related to loans receivable was 1.15% of loans receivable as of March 31, 2025, representing 257% of non-performing loans[136]. Assets and Equity - Total assets increased to $2.376 billion as of March 31, 2025, up from $2.317 billion as of December 31, 2024, primarily due to a $57.6 million increase in gross loans outstanding[104]. - Total stockholders' equity increased to $220.7 million as of March 31, 2025, up from $213.5 million at December 31, 2024, due to net income and an increase in the fair value of securities[114]. - The fair value of securities available for sale was $408.7 million as of March 31, 2025, up from $397.8 million at December 31, 2024[105]. - Total liquidity as of March 31, 2025, was $484.1 million, representing 20.4% of total assets, slightly up from $470.1 million and 20.3% of total assets as of December 31, 2024[121]. - The Company had cash and cash equivalents of $75.4 million as of March 31, 2025[121]. Deposits and Borrowings - Total deposits increased by $145.3 million during the three months ended March 31, 2025, primarily due to an $80.6 million increase in interest-bearing demand deposits[110]. - Short-term borrowings decreased to $0 at March 31, 2025, from $113.1 million at December 31, 2024, primarily due to a decrease in overnight borrowings[111]. - The maximum borrowing capacity with the Federal Home Loan Bank was approximately $658.3 million as of March 31, 2025, with $118.6 million outstanding[123]. Interest Income and Margin - Net interest income for the three months ended March 31, 2025, rose by $3,147,000, contributing to the overall increase in net income[131]. - Net interest income on a fully taxable equivalent basis for the three months ended March 31, 2025 totaled $18,054,000, an increase of $3,149,000 compared to the same period in 2024[133]. - Interest income (fte) increased to $30,281,000 for the three months ended March 31, 2025, with a yield on average earning assets of 5.54%, compared to $27,133,000 and 5.10% for the same period in 2024[134]. - The net interest margin (tax equivalent basis) for the three months ended March 31, 2025, was 3.30%, up from 2.80% for the same period in 2024[126]. Regulatory Capital - Tier 1 Capital to average assets ratio was 9.40% as of March 31, 2025, compared to 9.36% at December 31, 2024[116]. - The total capital ratio to risk-weighted assets was 13.19% as of March 31, 2025, down from 13.45% as of December 31, 2024[116]. - The Company maintained compliance with all applicable regulatory capital requirements as of March 31, 2025, under the Basel III Capital Rules[119]. - The Company adopted the transition guidance for CECL in the first quarter of 2023, impacting regulatory capital calculations[120]. Other Income and Expenses - Other income totaled $2,351,000 for the three months ended March 31, 2025, an increase from $2,006,000 in the same period in 2024[137]. - Other expenses totaled $12,064,000 for the three months ended March 31, 2025, an increase of $332,000 compared to the same period in 2024[138]. - Income tax expense for the three months ended March 31, 2025 was $1,514,000, with an effective tax rate of 20.8%[139].
Norwood Financial (NWFL) - 2025 Q1 - Quarterly Report