Norwood Financial (NASDAQ:NWFL) Announces Earnings Results, Misses Estimates By $0.01 EPS

Norwood Financial (NASDAQ:NWFL) issued its quarterly earnings results on Wednesday, July 22nd. The financial services provider reported $0.86 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.87 by ($0.01), FiscalAI reports. Norwood Financial had a return on equity of 12.88% and a net margin of 18.68%.The business had revenue of $29.37 million for the quarter, compared to analysts’ expectations of $28.10 million.

Here are the key takeaways from Norwood Financial’s conference call:

• Norwood reported a record second quarter with net income of $26.8 million, up 41% year over year, while adjusted EPS and returns on assets/equity also improved meaningfully.
• Net interest margin expanded to 3.9%, up 47 basis points from a year ago, helped mainly by lower deposit costs and the benefits of the repositioned portfolio.
• The company said the Presence Bank integration is now complete, including core system conversion and brand rollout, and management expects the experience to support future acquisition efforts.
• Norwood said it has already earned back the tangible book value dilution from the Presence Bank acquisition two years ahead of estimates, which management framed as evidence of strong earnings power and disciplined M&A.
• Credit quality was pressured by a $22 million borrower bankruptcy, leading to a $700,000 net charge-off and higher provision expense, though management said the outcome is acceptable relative to exposure and the bankruptcy process remains ongoing.

Norwood Financial Stock Performance

Shares of NWFL stock opened at $34.15 on Monday. The firm has a 50 day moving average of $32.79 and a two-hundred day moving average of $31.06. The stock has a market capitalization of $372.24 million, a PE ratio of 11.78 and a beta of 0.54. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.23. Norwood Financial has a 52 week low of $23.82 and a 52 week high of $35.45.

Norwood Financial Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Wednesday, July 15th were given a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 3.7%. The ex-dividend date of this dividend was Wednesday, July 15th. Norwood Financial’s dividend payout ratio (DPR) is currently 44.14%.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on NWFL shares. Stephens reissued a “mixed” rating and issued a $35.00 price target (up from $34.00) on shares of Norwood Financial in a research note on Thursday, July 23rd. Weiss Ratings reiterated a “buy (b)” rating on shares of Norwood Financial in a report on Friday, July 24th. Finally, Wall Street Zen lowered shares of Norwood Financial from a “buy” rating to a “hold” rating in a research note on Saturday, May 16th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, Norwood Financial presently has a consensus rating of “Moderate Buy” and an average price target of $35.00.

Insider Activity

In related news, Director James Shook bought 3,100 shares of the firm’s stock in a transaction that occurred on Tuesday, July 28th. The stock was purchased at an average cost of $34.55 per share, for a total transaction of $107,105.00. Following the completion of the acquisition, the director owned 12,586 shares in the company, valued at approximately $434,846.30. This trade represents a 32.68% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 8.10% of the company’s stock.

Hedge Funds Weigh In On Norwood Financial

Several hedge funds and other institutional investors have recently made changes to their positions in NWFL. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Norwood Financial by 18.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,909 shares of the financial services provider’s stock worth $119,000 after purchasing an additional 765 shares during the last quarter. Geode Capital Management LLC increased its stake in Norwood Financial by 3.2% in the second quarter. Geode Capital Management LLC now owns 201,858 shares of the financial services provider’s stock valued at $5,205,000 after purchasing an additional 6,238 shares during the last quarter. Marshall Wace LLP acquired a new stake in Norwood Financial during the second quarter worth approximately $648,000. Raymond James Financial Inc. raised its holdings in Norwood Financial by 20.8% during the second quarter. Raymond James Financial Inc. now owns 89,419 shares of the financial services provider’s stock worth $2,305,000 after purchasing an additional 15,408 shares in the last quarter. Finally, Tower Research Capital LLC TRC lifted its position in shares of Norwood Financial by 293.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,771 shares of the financial services provider’s stock worth $46,000 after buying an additional 1,321 shares during the last quarter. Hedge funds and other institutional investors own 28.08% of the company’s stock.

About Norwood Financial

Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing and non-interest-bearing transaction accounts, and statement savings and money market accounts, as well as certificate of deposits. It also provides commercial loans comprising lines of credit, revolving credit, term loans, mortgages, secured lending products, and letter of credit facilities; municipal finance lending; construction loans for commercial construction projects and single-family residences; land loans; construction financing; consumer loans; mortgage lending to finance principal residences and second home dwellings; and indirect dealer financing of new and used automobiles, boats, and recreational vehicles.