Norwood Financial (NASDAQ:NWFL) Announces Quarterly Earnings Results

Norwood Financial (NASDAQ:NWFL) posted its quarterly earnings data on Tuesday. The financial services provider reported $1.08 earnings per share for the quarter, topping the consensus estimate of $0.95 by $0.13, FiscalAI reports. Norwood Financial had a net margin of 19.67% and a return on equity of 13.53%. The company had revenue of $3.27 million during the quarter, compared to analysts’ expectations of $30.00 million.

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

• Record third-quarter results: Net income reached $11.8 million, or $1.08 per diluted share, while net interest income rose 37% year over year to $28 million. Net interest margin expanded 38 basis points to 4.01%, and return on average assets was 1.60%.
• Operating performance benefited from the larger post-Presence Bank balance sheet and improving efficiency, with pre-provision net revenue up 53% year over year to $15.4 million. Merger-related expenses were essentially complete, with none recorded in the quarter.
• A favorable development in a previously disclosed borrower bankruptcy generated approximately $400,000 of interest and fee income, reduced the bank’s exposure, and drove a significant improvement in non-performing loans. Provision for credit losses fell to $100,000 from $1.9 million in the second quarter.
• Management expects continued loan and margin support from loans repricing upward, lower retail CD costs, and a strong pipeline, but does not anticipate significant further margin expansion as rates rise. The bank also noted that roughly $7 million of remaining exposure remains on non-accrual and may require a longer workout, although management does not foresee a large loss.
• Fee-income initiatives are gaining traction, including a 41% year-over-year improvement in brokerage revenue following the transition to Cetera Wealth Services. Management views fee-income growth as sustainable and potentially expandable, while maintaining an active but selective approach to future M&A.

Norwood Financial Stock Down 0.4%

Shares of NWFL stock traded down $0.13 during trading on Friday, reaching $35.51. The company’s stock had a trading volume of 38,092 shares, compared to its average volume of 54,080. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.23. The business has a fifty day moving average price of $34.24 and a 200-day moving average price of $31.62. The company has a market cap of $387.06 million, a price-to-earnings ratio of 11.49 and a beta of 0.55. Norwood Financial has a one year low of $25.73 and a one year high of $37.39.

Norwood Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Thursday, October 15th will be paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend is Thursday, October 15th. Norwood Financial’s dividend payout ratio (DPR) is presently 41.42%.

Insider Transactions at Norwood Financial

In other Norwood Financial news, EVP Vincent O’bell sold 3,000 shares of the business’s stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $34.52, for a total transaction of $103,560.00. Following the completion of the sale, the executive vice president owned 4,392 shares in the company, valued at approximately $151,611.84. The trade was a 40.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 8.10% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on NWFL shares. Stephens restated 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 reissued a “buy (b)” rating on shares of Norwood Financial in a report on Thursday, October 22nd. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, Norwood Financial has an average rating of “Moderate Buy” and a consensus target price of $35.00.

About Norwood Financial

Norwood Financial Corp. is the bank holding company for Wayne Bank, a community banking institution headquartered in Honesdale, Pennsylvania. Through Wayne Bank, the company provides banking and financial services to individuals, families, businesses, and nonprofit organizations.

Wayne Bank offers deposit products, including checking, savings, money market, and certificate of deposit accounts, along with consumer, residential mortgage, commercial, and real estate lending. Its services also include online and mobile banking, cash management, debit cards, and other electronic banking solutions.

Founded in 1870, Wayne Bank serves communities in northeastern Pennsylvania and the Catskill and Hudson Valley regions of New York through its branch network and digital channels.