Norwood Financial Corp announces Fourth Quarter and Full Year 2024 Results

Core Insights - Norwood Financial Corp reported a net loss of $12.7 million for Q4 2024, primarily due to a one-time$20 million loss from the repositioning of its investment portfolio [2][4][17] - The company successfully raised capital to enhance its investment portfolio's yield, which is expected to improve future performance despite the current loss [2][3] - Net interest income increased to $16.6 million in Q4 2024, up from$15.3 million in Q4 2023, indicating a year-over-year growth [4][16] Financial Performance - For the three months ended December 31, 2024, net interest income was $16,625 thousand, compared to$15,293 thousand in the same period of 2023, reflecting a year-over-year increase of $1,332 thousand [4][16] - The net interest margin improved to 3.04$2.317 billion, up from $2.201 billion a year earlier, with loans receivable growing to$1.694 billion [4][12][16] Adjusted Financial Metrics - Adjusted net income for Q4 2024 was $3,119 thousand, significantly higher than$355 thousand in Q4 2023, while adjusted diluted earnings per share rose to $0.38 from$0.04 [6][11] - The adjusted return on average assets for Q4 2024 was 0.54%, up from 0.06% in Q4 2023, and the adjusted return on tangible equity was 7.59%, compared to 1.01% in the prior year [6][10] Capital and Equity - The company’s stockholders' equity increased to $213.5 million as of December 31, 2024, from$181.1 million a year prior, reflecting a stronger capital position [4][12] - Tangible common equity ratio improved to 8.05% at the end of 2024, compared to 6.98% at the end of 2023 [4][12] Loan and Deposit Growth - Loans grew at an annualized rate of 9% during Q4 2024, indicating strong demand for credit [3] - Total deposits reached $1.859 billion as of December 31, 2024, compared to$1.795 billion a year earlier, showing a positive trend in customer deposits [4][12]