Norwood Financial Corp announces Second Quarter 2025 Results
Quarterly and Year-to-Date Highlights:
Fully diluted EPS of $0.67, a 29% increase over the same period in 2024
Return on assets rose 31 basis points to 1.06% from 2Q 2024.
Net interest margin increased 13 basis points vs. the prior quarter and 63 basis points over the prior year.
Loans grew at a 4.4% and 8.2% annualized rate during the second quarter and year-to-date, respectively.
Deposits grew year-to-date at an annualized rate of 15% while deposit costs fell 20 basis points since the 4th quarter of 2024.
Capital continues to improve on increased earnings and lower accumulated other comprehensive income (AOCI) adjustment.
HONESDALE, Pa., July 22, 2025 (GLOBE NEWSWIRE) -- Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced results for the three months and six months ended June 30, 2025.
Jim Donnelly, President and Chief Executive Officer, stated, "Our company's performance continues to strengthen, due to increased yields coming out of our 2024 4th quarter repositioning, as well as improved results in all our business lines. In the first half of 2025 we achieved robust growth in both loans and deposits while improving yields as well. We enter the second half of 2025 on solid footing and with good momentum"
Mr. Donnelly continued, "I am proud of the performance from the entire Norwood team as they remain focused on delivering the products and services that help our customers achieve their goals. During the second quarter we launched our ‘Every Day Better' campaign to high acclaim from customers, employees, and community members. This full rebrand enabled us to articulate our values and mission, stand out from competitors, and unite and energize our company culture. Building on this great combination of a high-performing team and strong brand, I am confident that we are on our way to creating a bright future for us, our customers, and our shareholders."
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)
Year-Over Year
Linked Quarter
Year-to-Date
3 Months Ended
3 Months Ended
6 Months Ended
Jun-25
Jun-24
Change
Mar-25
Change
Jun-25
Jun-24
Change
Net interest income
$
19,065
$
14,925
$
4,140
$
17,857
$
1,208
$
36,923
$
29,635
$
7,288
Net interest spread (fte)
2.75
%
2.06
%
69 bps
2.61
%
14 bps
2.68
%
2.07
%
30 bps
Net interest margin (fte)
3.43
%
2.80
%
63 bps
3.30
%
13 bps
3.37
%
2.80
%
26 bps
Net income
$
6,205
$
4,213
$
1,992
$
5,773
$
432
$
11,978
$
8,646
$
3,332
Diluted earnings per share
$
0.67
$
0.52
$
0.15
$
0.63
$
0.04
$
1.30
$
1.07
$
0.23
Return on average assets
1.06
%
0.75
%
31 bps
1.01
%
5 bps
1.03
%
0.78
%
25 bps
Return on tangible equity
12.83
%
9.44
%
339 bps
12.40
%
43 bps
12.62
%
11.49
%
113 bps
Discussion of financial results for the three months ended June 30, 2025:
The Company had net income of $6.2 million for the three months ended June 30, 2025, an increase of $2.0 million over the same period last year.
Net interest income increased during the second quarter of 2025 compared to the second quarter of 2024 due to increases in asset yields while yields on liabilities decreased.
Correspondingly, the net interest margin in the second quarter of 2025 was 3.43% compared to 2.80% in the second quarter of 2024.
Non-interest income in the first 6 months of 2025 increased $386 thousand or 9.2% over the same period in 2024.
The efficiency ratio for the second quarter of 2025 was 58.7% compared to 66.7% in the second quarter of 2024.
As of June 30, 2025, total assets were $2.365 billion, compared to $2.235 billion at June 30, 2024, an increase of 5.82%.
Loans receivable were $1.791 billion at June 30, 2025, compared to $1.641 billion at June 30, 2024, an increase of 9.1% .
Total deposits were $1.997 billion at June 30, 2025, compared to $1.811 billion at June 30, 2024, an increase of 10.3%.
Tangible Common Equity was 8.39% as of June 30, 2025, versus 6.92% at June 30, 2024.
Tangible Book Value per share increased $1.32 from $19.85 at December 31, 2024, to $21.17 at June 30, 2025.
Norwood Financial Corp is the parent company of Wayne Bank, which operates from sixteen offices throughout Northeastern Pennsylvania and fourteen offices in Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. The Company's stock trades on the Nasdaq Global Market under the symbol "NWFL".
Non-GAAP Financial Measures (unaudited)
The following tables reconcile certain Non-GAAP financial measures references in this release:
Three months ended
Six months ended
(dollars in thousands)
June 30
June 30
2025
2024
2025
2024
Net Interest Income
$
19,065
$
14,925
$
36,923
$
29,635
Taxable equivalent basis adjustment using 21% marginal tax rate
199
199
397
394
Net interest income on a fully taxable equivalent basis
$
19,264
$
15,124
$
37,320
$
30,029
Three months ended
Six months ended
(dollars in thousands)
June 30
June 30
2025
2024
2025
2024
Average equity
$
223,351
$
179,494
$
220,787
$
180,791
Average goodwill and other intangibles
(29,394
)
(29,457
)
(29,402
)
(29,466
)
Average tangible equity
$
193,957
$
150,037
$
191,385
$
151,325
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words "believes", "anticipates", "contemplates", "expects", "bode", "future performance", "solid footing," "good momentum," "bright future" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Those risks and uncertainties include, among other things, changes in federal and state laws, changes in interest rates, our ability to maintain strong credit quality metrics, our ability to have future performance, our ability to control core operating expenses and costs, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contact: John M. McCaffery Executive Vice President & Chief Financial Officer NORWOOD FINANCIAL CORP 272-304-3003 www.waynebank.com
NORWOOD FINANCIAL CORP
Consolidated Balance Sheets
(dollars in thousands, except share and per share data)
(unaudited)
June 30
2025
2024
ASSETS
Cash and due from banks
$
32,052
$
29,903
Interest-bearing deposits with banks
20,993
39,492
Cash and cash equivalents
53,045
69,395
Securities available for sale
402,460
397,578
Loans receivable
1,790,574
1,641,355
Less: Allowance for credit losses
20,908
17,806
Net loans receivable
1,769,666
1,623,549
Regulatory stock, at cost
7,538
6,443
Bank premises and equipment, net
21,608
18,265
Bank owned life insurance
46,099
46,121
Foreclosed real estate owned
-
-
Accrued interest receivable
8,642
8,329
Deferred tax assets, net
17,693
21,707
Goodwill
29,266
29,266
Other intangible assets
121
183
Other assets
9,212
14,480
TOTAL ASSETS
$
2,365,350
$
2,235,316
LIABILITIES
Deposits:
Non-interest bearing demand
$
406,358
$
391,849
Interest-bearing
1,591,476
1,419,323
Total deposits
1,997,834
1,811,172
Short-term borrowings
26,500
62,335
Other borrowings
85,350
148,087
Accrued interest payable
10,975
13,329
Other liabilities
19,266
18,206
TOTAL LIABILITIES
2,139,925
2,053,129
STOCKHOLDERS' EQUITY
Preferred Stock, no par value per share, authorized 5,000,000 shares
-
-
Common Stock, $.10 par value per share,
authorized: 20,000,000 shares,
issued: 2025: 9,490,505 shares, 2024: 8,311,851 shares
949
831
Surplus
126,990
98,082
Retained earnings
131,199
139,070
Treasury stock, at cost: 2025: 229,983 shares, 2024: 221,540 shares
(6,208
)
(5,977
)
Accumulated other comprehensive loss
(27,505
)
(49,819
)
TOTAL STOCKHOLDERS' EQUITY
225,425
182,187
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
$
2,365,350
$
2,235,316
NORWOOD FINANCIAL CORP
Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
INTEREST INCOME
Loans receivable, including fees
$
27,115
$
24,121
$
53,103
$
47,802
Securities
3,871
2,584
7,742
5,109
Other
220
966
446
1,697
Total Interest income
31,206
27,671
61,291
54,608
INTEREST EXPENSE
Deposits
10,869
10,687
21,617
20,796
Short-term borrowings
211
356
669
692
Other borrowings
1,061
1,703
2,082
3,485
Total Interest expense
12,141
12,746
24,368
24,973
NET INTEREST INCOME
19,065
14,925
36,923
29,635
PROVISION FOR (RELEASE OF) CREDIT LOSSES
950
347
1,807
(276
)
NET INTEREST INCOME AFTER PROVISION FOR (RELEASE OF) CREDIT LOSSES
18,115
14,578
35,116
29,911
OTHER INCOME
Service charges and fees
1,514
1,504
3,027
2,847
Income from fiduciary activities
226
225
551
463
Gains on sales of loans, net
65
36
112
42
Earnings and proceeds on life insurance policies
266
253
552
520
Other
177
189
357
341
Total other income
2,248
2,207
4,599
4,213
OTHER EXPENSES
Salaries and employee benefits
6,605
5,954
13,077
12,090
Occupancy, furniture and equipment
1,349
1,229
2,727
2,489
Data processing and related operations
1,189
1,024
2,274
2,046
Taxes, other than income
192
179
385
272
Professional fees
623
508
1,282
1,092
FDIC Insurance assessment
355
309
761
670
Foreclosed real estate
137
15
141
36
Amortization of intangibles
15
19
30
38
Other
2,066
2,207
3,918
4,442
Total other expenses
12,531
11,444
24,595
23,175
INCOME BEFORE TAX EXPENSE
7,832
5,341
15,120
10,949
INCOME TAX EXPENSE
1,627
1,128
3,142
2,303
NET INCOME
$
6,205
$
4,213
$
11,978
$
8,646
Basic earnings per share
$
0.67
$
0.52
$
1.30
$
1.07
Diluted earnings per share
$
0.67
$
0.52
$
1.30
$
1.07
NORWOOD FINANCIAL CORP
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)
For the Quarter Ended
June 30, 2025
March 31, 2025
June 30, 2024
Average
Average
Average
Average
Average
Average
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Interest
Rate
(2)
(1)
(3)
(2)
(1)
(3)
(2)
(1)
(3)
Assets
Interest-earning assets:
Interest-bearing deposits with banks
$
19,085
$
220
4.62
%
$
20,802
$
226
4.41
%
$
69,173
$
967
5.62
%
Securities available for sale:
