Financial Data and Key Metrics Changes - Earnings for the quarter increased to $71.9 million, or $0.95 per share, exceeding the consensus estimate of $0.88 [6][19] - Return on Assets (ROA) improved to 0.82%, and Return on Equity (ROE) rose to 9.5% [6][19] - Net Interest Margin (NIM) reached 3%, achieved a quarter earlier than expected [6][19] - Capital levels continued to grow, with Common Equity Tier 1 (CET1) at 12.5% and tangible book value per share at $39.27 [6][7] Business Line Data and Key Metrics Changes - Total deposits were flat, declining by $28 million, with a $1.2 billion increase in non-broker deposit growth over the last 12 months [11][12] - Commercial Real Estate (CRE) loans increased by $61 million, while Commercial and Industrial (C&I) loans decreased by $130 million due to ongoing payoffs [12][13] - Mortgage warehouse loans grew by $83 million during the quarter [13] Market Data and Key Metrics Changes - The CRE exposure totaled $6.5 billion, representing 28% of loans, with a well-balanced portfolio across various asset classes [15][16] - The weighted average loan-to-value ratio of the CRE portfolio was 55%, and the debt service coverage ratio was 1.77 [16] - 49% of the CRE portfolio is in Florida, and 22% in the New York tri-state area, with diversification into other markets like Atlanta and Texas [17] Company Strategy and Development Direction - The company aims to continue margin expansion driven by a change in mix on both sides of the balance sheet rather than solely relying on Federal Reserve rate actions [19][20] - There is a focus on building core relationships and maintaining a disciplined approach to pricing in competitive markets [43][44] - The company is optimistic about long-term prospects for fee income, with a 20% growth in core fee income celebrated [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business environment, noting strong pipelines in commercial and real estate teams [10][11] - The sentiment among clients is positive, particularly in the CRE markets, with expectations for strong core commercial loan growth in the fourth quarter [11][50] - The company anticipates flat margin for the fourth quarter but expects to achieve double-digit growth in net interest-bearing deposits for the year [27] Other Important Information - The company has adopted a more opportunistic buyback strategy due to market volatility, rather than a consistent daily buyback approach [7][19] - Non-interest income increased by 24% year-over-year, excluding lease financing, as commercial fee businesses gained traction [25][66] - The CFO, Leslie N. Lunak, is retiring after 13 years, with Jim Mackey transitioning into the role [29][33] Q&A Session Summary Question: Will there be additional charge-offs in Q4 related to specific loans? - Yes, an additional charge-off of a few million dollars is expected in Q4 related to one C&I credit, but it has been fully reserved for [41] Question: Is the loan opportunity set improving in competitive markets? - The opportunity set is larger in growing markets, and while competition is high, the company is focused on maintaining pricing discipline [43][44] Question: What is the outlook for expenses next year? - Specific guidance for 2026 will be provided in January, but no major investments are anticipated that would significantly accelerate expense growth [54] Question: What is the growth potential of fee income businesses? - Fee income growth is expected to be strong, particularly in lending fees, syndication fees, and capital markets, which are closely tied to core commercial activities [63][70] Question: What is the company's appetite for incremental CRE? - The company sees opportunities in retail, industrial, and multifamily sectors, with a focus on grocery-anchored urban markets and construction lending [85]

Disclaimer Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, identified by words such as "may", "might", "should", "could ...

Core Insights - Norwood Financial Corp reported strong financial results for the third quarter and year-to-date ending September 30, 2025, highlighting solid growth, improved profitability, and efficiency [1][3][7]. Financial Performance - Net income for the three months ended September 30, 2025, was $8.334 million, an increase of $4.490 million compared to the same period in 2024 [7]. - Net interest income rose to $20.458 million for the third quarter of 2025, up from $15.931 million in the same quarter of 2024, reflecting an increase of $4.527 million [1][9]. - The net interest margin improved to 3.63% in Q3 2025, compared to 2.99% in Q3 2024, marking a 64 basis points increase [1][3][9]. - Pre-Provision Net Revenue (PPNR) for the third quarter was $10.029 million, up from $6.195 million year-over-year [1][9]. Growth Metrics - Loans receivable increased to $1.815 billion as of September 30, 2025, representing an 8.3% increase from $1.675 billion in the same period last year [7][9]. - Total deposits reached $2.074 billion, an increase of 11.8% from $1.855 billion year-over-year [7][9]. - Year-to-date loan growth was at an annualized rate of 7.3%, while deposits grew at an annualized rate of 15% [3][7]. Efficiency and Returns - The efficiency ratio improved to 56.3% in Q3 2025, down from 66.0% in Q3 2024, indicating better cost management [7]. - Return on average assets increased to 1.40%, up 72 basis points from the previous year [3][7]. - Return on average tangible equity rose to 16.76%, an increase of 718 basis points year-over-year [3][7]. Brand and Market Position - The company launched its "Every Day Better" brand, which received positive feedback from customers and employees, enhancing its market presence and company culture [1][3].

Core Viewpoint - FS Bancorp, Inc. reported a decrease in net income for the third quarter of 2025, with net income of $9.2 million compared to $10.3 million in the same quarter last year, reflecting challenges in maintaining profitability amidst changing market conditions [1][7]. Financial Performance - The net income for the third quarter of 2025 was $9.2 million, or $1.18 per diluted share, down from $10.3 million, or $1.29 per diluted share, in the same quarter of 2024 [1]. - For the nine months ended September 30, 2025, net income was $24.9 million, or $3.18 per diluted share, compared to $27.6 million, or $3.45 per diluted share, for the same period in 2024 [1]. - Total deposits increased by $133.1 million, or 5.2%, to $2.69 billion at September 30, 2025, compared to $2.55 billion at June 30, 2025, and increased by $259.2 million, or 10.7%, from $2.43 billion at September 30, 2024 [7]. - Loans receivable, net increased by $17.3 million, or 0.7%, to $2.60 billion at September 30, 2025, compared to $2.58 billion at June 30, 2025, and increased by $135.9 million, or 5.5%, from $2.46 billion at September 30, 2024 [7]. Shareholder Returns - The company balanced shareholder returns in the third quarter through share repurchases, a paid special dividend, and the payment of its 50th quarterly dividend [3]. - The Board of Directors approved a cash dividend of $0.28 per common share, marking the 51st consecutive quarterly cash dividend, to be paid on November 20, 2025 [3]. Segment Reporting - The company operates through two segments: Commercial and Consumer Banking, and Home Lending [5]. - In the third quarter of 2025, the Commercial and Consumer Banking segment reported net income of $8.4 million, while the Home Lending segment reported net income of $775,000 [7]. Asset and Liability Management - Total assets increased by $32.8 million, or 1%, to $3.21 billion at September 30, 2025, compared to $3.18 billion at June 30, 2025, and increased by $238.6 million, or 8%, from $2.97 billion at September 30, 2024 [13]. - Borrowings decreased by $105.0 million, or 44.8%, to $129.3 million at September 30, 2025, compared to $234.3 million at June 30, 2025 [7]. Loan Portfolio - Total loans receivable increased to $2.63 billion during the third quarter of 2025, primarily due to growth in commercial and speculative construction and development loans [16]. - The composition of commercial real estate (CRE) loans showed an increase in total CRE loans to $932.7 million, up from $916.1 million in the previous quarter [17].

Financial Data and Key Metrics Changes - Third quarter net income totaled $10.1 million or $0.59 per share, representing a 9% increase from the previous quarter and a 45% increase year-over-year [3][5] - Net interest income increased for the fifth consecutive quarter, up $1.9 million to $29.3 million, driven by higher interest income of $3.2 million [5][6] - Net interest margin expanded by 6 basis points to 2.98%, a 30 basis point increase over the last four quarters [3][6] Business Line Data and Key Metrics Changes - Loans held for investment grew by $68 million or 8% on an annualized basis, with third quarter loan originations totaling $188 million at a blended yield of 6.70% [4][5] - Non-performing loans decreased by $11.3 million or 20% to $44.5 million, attributed to charge-offs and upgrades [9][10] - Total deposits increased by $178 million to $3.4 billion, with growth across all deposit categories [11] Market Data and Key Metrics Changes - The spot rate on deposits was 2.97%, which was six basis points below the third quarter's average of 3.03% [6] - The loan portfolio yield expanded by 9 basis points to 6.12%, primarily due to strong origination yields [9] Company Strategy and Development Direction - The company is focused on addressing remaining credit issues and improving asset quality, with a goal of resolving significant non-accrual loans [18][19] - There is an ongoing effort to deepen relationships in existing markets and explore opportunities for sub-debt refinancing next year [54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about core earnings growth and lower credit costs, indicating a positive outlook for the future [3][5] - The company remains vigilant in managing credit quality and is focused on maintaining strong loan growth despite competitive pressures [18][19] Other Important Information - The company repurchased 660,000 shares or 4% of shares outstanding in the third quarter, with a tangible book value per share increasing to $25.89 [11][12] - Non-interest expenses decreased by $1.8 million to $18.7 million, primarily due to the absence of ERC-related expenses from the previous quarter [8] Q&A Session Summary Question: What inning do you think you are in regarding credit resolution? - Management acknowledged that while progress has been made, there is still work to do, and they are focused on resolving remaining credit issues [16][17] Question: How much is left in the current share repurchase authorization? - Approximately $4 million remains in the current program, and management is considering future buyback opportunities [20] Question: What is the expected deposit beta with potential rate cuts? - Management indicated that deposit beta may have slowed due to fierce competition for liquidity, but they expect to capitalize on upcoming opportunities [26][27] Question: What is the outlook for loan growth and portfolio mix? - The pipeline remains healthy, with a focus on residential mortgages and a gradual shift towards C&I loans, although seasonality may moderate growth in Q4 [36][37] Question: Was there any interest recovery during the third quarter? - There was no significant interest recovery or anomalies in net interest income during the third quarter [42] Question: What rates were the FHLB advances maturing at? - The FHLB advances matured at a rate of 3.40%, and were replaced with brokered deposits at higher rates [44]

Financial Data and Key Metrics Changes - The company reported earnings of $140.9 million, translating to an EPS of $2.22 per diluted share for Q3 2025, reflecting a solid foundation for future growth [3][4] - Total outstanding loan balances increased by 2.4% sequentially, adding almost $1.2 billion over the past two quarters [3][6] - Net interest margin expanded by 11 basis points, with core net interest income increasing by $11.3 million [4][13] - Fee income grew by 3.6% sequentially, contributing to overall performance [5][10] Business Line Data and Key Metrics Changes - The core Commercial and Industrial (CNI) loan portfolio grew by 1.4% quarter over quarter, while the commercial real estate (CRE) business increased by 4.2% [6][7] - The specialty lending portfolio saw a slight increase, with healthcare loans up by 1.8% driven by strong origination activity [7] - Investment banking revenue reached a record of $16.1 million, primarily due to municipal bond underwriting activity [10] Market Data and Key Metrics Changes - Assets Under Management (AUMA) grew to over $122 billion, marking a 4.1% increase in the third quarter [5][11] - Non-performing assets decreased by $7 million to $67 million, with a non-performing assets to period loans ratio of 27 basis points [8] Company Strategy and Development Direction - The company aims to sustain growth momentum, particularly in the CNI and CRE sectors, while maintaining a strong liquidity profile [4][16] - There is a focus on organic growth, with share repurchases and dividends as secondary uses of capital, while M&A opportunities are considered cautiously [22][23] - The launch of the mortgage finance business is expected to contribute significantly to growth, with a target of $500 million in commitments by year-end [30][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining loan growth despite competitive pressures and market disruptions from M&A activity [20][21] - The outlook for net interest income is projected between $1.325 billion and $1.35 billion, with expectations for continued growth in loans and deposits [16][18] - Credit quality remains strong, with expectations for low charge-offs and a healthy allowance for credit losses [8][72] Other Important Information - The company repurchased over 365,000 shares at an average price of $111 per share during the quarter, reflecting a commitment to shareholder value [5][6] - Total expenses increased by $15.3 million, primarily due to personnel expenses related to workforce realignment [13][15] Q&A Session Summary Question: Loan growth expectations and competitive forces - Management noted strong loan growth of around 2.5% in recent quarters and expressed confidence in sustaining this momentum despite competitive pressures from M&A activity [19][20] Question: Capital allocation and M&A considerations - The company prioritizes organic growth but remains open to M&A opportunities that align with strategic goals, emphasizing caution in execution [22][23] Question: Core margin trends and expectations - Management indicated a continued upward trend in core margin, driven by fixed-rate asset repricing and deposit repricing opportunities [26][27] Question: Mortgage finance business potential - The mortgage finance business is expected to grow significantly, with a target of $500 million in commitments by year-end and a strong growth outlook for 2026 [30][37] Question: Fee income range and guidance - Management discussed the challenges in providing precise guidance for fee income but noted strong activity across various fee-generating businesses [32][33] Question: Credit quality and charge-off expectations - The company maintains a strong credit quality outlook, with expectations for charge-offs to remain low in the near term [56][72]

Financial Data and Key Metrics Changes - Adjusted net income from continuing operations increased to $152.8 million or $0.81 per share, with adjusted return on assets at 1.13% for the quarter [7] - Tangible book value per share declined only $0.12 to $22.82, largely offset by strong operating earnings and improvement in accumulated other comprehensive income (AOCI) [6] - Adjusted pre-tax pre-provision net revenue reached a record $224 million, up nearly 9% from the prior quarter [9] - Total adjusted revenue of $517 million increased by $41 million or 9% in the quarter, with net interest revenue up $46 million or 12% [10] Business Line Data and Key Metrics Changes - Deposits increased by $3.4 billion, with core customer deposits up $3.1 billion due to the influx from the Industry acquisition [7] - Loans rose by $1.3 billion, with $1 billion attributed to the Industry acquisition and over $300 million in organic growth across mortgage and multiple verticals [7] - Adjusted non-interest revenue of $93.5 million decreased by $4.7 million, primarily due to seasonal declines in mortgage banking revenue [12] Market Data and Key Metrics Changes - The company experienced an uptick in commercial real estate (CRE) paydowns during the quarter, but new origination activity remained strong across its footprint [8] - Non-performing asset levels and criticized and classified asset levels continued to reflect stability [8] Company Strategy and Development Direction - The company completed the acquisition of Industry Bankshares and integrated it into its systems, aiming to grow in Central Texas and Georgia markets [4] - The management expressed confidence in leveraging deposit products and services more fully now that integration is complete [7] - The company plans to continue focusing on organic growth while also considering additional acquisitions in a consolidating industry [60] Management's Comments on Operating Environment and Future Outlook - Management noted that the pipeline for loan growth remains strong, with expectations for continued modest improvement in net interest margin through the end of the year and into next year [11] - The company anticipates that the expense expectations will align with revenue expectations, driving operating leverage as they approach year-end [23] Other Important Information - The company reported a $4.3 million securities gain offset by a $4.3 million hedge loss, resulting in a net impact of zero on the P&L [9][12] - The adjusted efficiency ratio improved to 56.5% [7] Q&A Session Summary Question: Can you talk about the drivers of the slightly lower revenue and loan growth guide? - Management indicated that the shorter timeline for the remaining months of the year provides better clarity, and they expect good growth in the fourth quarter [20][21] Question: What sort of beta do you expect in the broker and time deposits as rates go down? - Management expects interest-bearing betas to reach about 50%, with total deposits between 30% and 40% [25][26] Question: What's the expectation for DDA specifically as we go through the rest of the year? - Management noted that non-interest-bearing deposits finished Q3 at 20.6%, with expectations to stabilize around 21% [32][33] Question: What should we think of as a good capital level or a base capital level that you're trying to manage to? - Management aims to continue being good stewards of capital, with plans to execute on organic growth and consider additional deals [39] Question: What was driving the increase in deposits this quarter? - Management clarified that the increase was largely due to the Industry acquisition, with stable core organic deposits [46] Question: Can you provide insight into the fee income businesses this quarter? - Management highlighted a typical seasonal dip in mortgage production but noted a year-over-year increase of 13% [124]

Financial Data and Key Metrics Changes - Adjusted net income from continuing operations increased to $152.8 million or $0.81 per share, with adjusted return on assets at 1.13% for the quarter [6][10] - Adjusted pre-tax pre-provision net revenue reached a record $224 million, up nearly 9% from the prior quarter [9] - Total adjusted revenue of $517 million increased by $41 million or 9% in the quarter [10] - Net interest revenue was up $46 million or 12%, driven by a larger balance sheet and improved net interest margin [10] - Adjusted efficiency ratio improved to 56.5% [6] Business Line Data and Key Metrics Changes - Deposits increased by $3.4 billion, with core customer deposits up $3.1 billion due to the influx from the Industry acquisition [6] - Loans increased by $1.3 billion, with $1 billion from the Industry acquisition and over $300 million in organic growth [6] - Adjusted non-interest revenue of $93.5 million decreased by $4.7 million, primarily due to seasonal declines in mortgage banking revenue [12] Market Data and Key Metrics Changes - The securities portfolio grew by $780 million in the quarter, reflecting an improved mix and interest rate profile compared to the prior quarter [10] - Net interest margin improved by six basis points to 3.46%, driven by improved securities yields and a decline in overall funding costs [10] Company Strategy and Development Direction - The company completed the acquisition of Industry Bankshares and integrated it into its systems, aiming for growth in Central Texas and Georgia markets [4][5] - The company plans to leverage its deposit products and services more fully now that integration is complete [6] - The management expressed confidence in the performance and outlook for the markets, projecting growth in financial results through the end of the year [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains stable, with credit results in line with expectations and net charge-offs at 26 basis points annualized [7] - The company anticipates continued modest improvement in net interest margin through the end of the year and into next year [11] - Management highlighted strong pipelines and diverse growth opportunities across all business lines [75] Other Important Information - The company reported a decline in tangible book value per share by only $0.12 to $22.82, largely offset by strong operating earnings [5] - The company expects to continue building capital after the Industry transaction and is back in the buyback game sooner than anticipated [34] Q&A Session Summary Question: Can you talk about the drivers of the slightly lower revenue and loan growth guide? - Management indicated that the shorter timeline for the year provides better clarity, and they expect good growth in the fourth quarter [19][20] Question: What sort of beta do you expect in the broker and time deposits as rates go down? - Management expects interest-bearing betas to reach about 50% and total deposits between 30% and 40% [22] Question: What is the expectation for DDA specifically as we go through the rest of the year? - Management noted that non-interest-bearing deposits finished Q3 at 20.6%, down from 21.2% at year-end 2024, with fluctuations due to customer behavior [28][30] Question: What should we think of as a good capital level or a base capital level that you're trying to manage to? - Management aims to be good stewards of capital, focusing on core organic growth and potential inorganic opportunities [34] Question: Can you provide insight into loan pricing and competition in recent weeks? - Management acknowledged competitive pressures but noted that yields have been holding steady, particularly in the Community Bank segment [80][81]

Financial Data and Key Metrics Changes - WinTrust reported a record net income of $216 million for Q3 2025, up nearly 11% from $195 million in the previous quarter [5][10] - Net interest income increased by $20 million to $567 million, driven by solid loan and balance sheet growth [5][10] - Total loans reached $52 billion, reflecting an 11% year-to-date increase on an annualized basis [6][10] - Total deposits were nearly $57 billion, with deposit growth of $895 million, representing a 6% increase over the prior quarter [9][10] - Net interest margin was 3.5%, slightly down from the previous quarter but within the targeted range [6][10] Business Line Data and Key Metrics Changes - Loan growth was broad-based, with commercial real estate loans increasing by $327 million and life finance loans growing by $252 million [15][16] - Non-interest income totaled $130.8 million, up approximately $6.7 million compared to the prior quarter, supported by higher wealth management and mortgage revenue [12][10] - Non-interest expenses decreased slightly to $380 million from $381.5 million in the previous quarter, indicating well-controlled expenses [12][10] Market Data and Key Metrics Changes - WinTrust achieved deposit share gains in key markets, ranking third in deposit market share in Illinois, up one position [7][10] - The company continues to see strong growth in its franchises in Wisconsin and West Michigan, with significant upside potential [7][10] Company Strategy and Development Direction - The company remains focused on core deposit growth as a key strategy, leveraging its advantageous market position [7][10] - WinTrust aims to continue generating loan and deposit growth in the mid to high single-digit range while maintaining a stable net interest margin [23][10] - The management emphasizes a disciplined approach to underwriting and a commitment to customer relationships in the Midwest [24][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of net interest margin despite potential rate cuts, citing a balanced deposit structure [35][10] - The overall credit environment remains stable, with proactive measures in place to address any challenges [20][10] - Management noted a sense of measured optimism among customers as they approach year-end [20][10] Other Important Information - The company has consistently grown tangible book value per share since going public and is on track to do so again in 2025 [13][10] - A one-time impact from preferred stock redemption reduced fully diluted net income per common share by $0.28 in Q3 [14][10] Q&A Session Summary Question: Can you talk about the loan growth drivers and any NDFI exposure? - Management highlighted unique market positioning in Chicago, gaining market share from larger banks, and noted that 70% of NDFI exposure is in mortgage warehouse lines with no losses experienced [28][33] Question: How do you feel about holding the margin in the current range with potential Fed rate cuts? - Management expressed confidence in maintaining the margin around 3.5%, citing a balanced deposit structure and effective hedging strategies [35][36] Question: What is the outlook for commercial loan growth? - Management indicated that the decline in commercial loan growth was more about timing than market competition, with consistent opportunities in the pipeline [40][41] Question: Can you expand on the strategy to focus on Midwest markets? - Management emphasized the attractiveness of the Midwest markets and the company's ability to take market share from competitors, preferring organic growth over expansion into other geographies [42][44] Question: What is the outlook for premium finance loans? - Management remains optimistic about premium finance growth, indicating it will continue to be a significant part of the loan portfolio [75][108] Question: Are there any segments or industries being closely monitored for credit? - Management is paying close attention to higher education and healthcare sectors, ensuring customers are well-capitalized to weather potential challenges [99][100]

Financial Performance Highlights - Net income for the first nine months of 2025 reached a record of $6008 million, an increase of $911 million or 18% compared to the same period in 2024[10, 13, 14] - Diluted EPS for the first nine months of 2025 was $825, up $058 or 8% from the same period in 2024[10, 13, 14] - Net interest income for the first nine months of 2025 reached a record $16 billion, an increase of $2028 million or 14% compared to the same period in 2024[10, 13, 14] - Pre-tax, pre-provision income for the first nine months of 2025 was $8841 million, an increase of $1061 million or 14% compared to the same period in 2024[10, 13] - Total assets reached $696 billion, an increase of $58 billion or 9%[10, 13] - Total loans increased by $50 billion or 11% to $521 billion[10, 13, 14] - Total deposits increased by $53 billion or 10% to $567 billion[10, 13] Balance Sheet and Capital Strength - Tangible book value per common share (non-GAAP) increased to $8539 as of September 30, 2025[10, 13, 14, 43] - The company's capital levels are well in excess of regulatory thresholds[36, 39] - Investment portfolio at 13% of total assets as of September 30, 2025[39] Loan and Deposit Portfolio - Total loans increased by approximately $10 billion in Q3 2025, or 8% annualized[16, 31] - Total deposits increased by approximately $8946 million in Q3 2025, or 6% annualized[16, 35]