Norwood Financial (NASDAQ:NWFL) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Norwood Financial (NASDAQ:NWFL) announced its earnings results on Wednesday, July 22nd. The financial services provider reported $0.86 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 company had revenue of $29.37 million during the quarter, compared to the consensus estimate 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 Trading Up 2.0%

NASDAQ:NWFL traded up $0.68 during midday trading on Wednesday, hitting $34.65. 32,805 shares of the company traded hands, compared to its average volume of 32,575. The firm has a market capitalization of $377.75 million, a P/E ratio of 11.95 and a beta of 0.54. The firm’s fifty day moving average is $32.91 and its 200-day moving average is $31.10. Norwood Financial has a 12-month low of $23.82 and a 12-month high of $35.45. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.23.

Norwood Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Wednesday, July 15th were given a dividend of $0.32 per share. The ex-dividend date was Wednesday, July 15th. This represents a $1.28 dividend on an annualized basis and a yield of 3.7%. Norwood Financial’s dividend payout ratio is 44.14%.

Analysts Set New Price Targets

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

Insider Buying and Selling at Norwood Financial

In other Norwood Financial news, Director James Shook purchased 3,100 shares of Norwood Financial stock in a transaction dated Tuesday, July 28th. The shares were 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 $434,846.30. This represents a 32.68% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 8.10% of the company’s stock.

Hedge Funds Weigh In On Norwood Financial

Hedge funds and other institutional investors have recently made changes to their positions in the company. CANADA LIFE ASSURANCE Co raised its stake in shares of Norwood Financial by 75.3% during the 4th quarter. CANADA LIFE ASSURANCE Co now owns 880 shares of the financial services provider’s stock worth $25,000 after acquiring an additional 378 shares in the last quarter. Osaic Holdings Inc. boosted its stake in Norwood Financial by 130.7% in the second quarter. Osaic Holdings Inc. now owns 1,061 shares of the financial services provider’s stock valued at $27,000 after acquiring an additional 601 shares in the last quarter. Tower Research Capital LLC TRC boosted its stake in Norwood Financial by 293.6% in the second quarter. Tower Research Capital LLC TRC now owns 1,771 shares of the financial services provider’s stock valued at $46,000 after acquiring an additional 1,321 shares in the last quarter. BNP Paribas Financial Markets grew its holdings in Norwood Financial by 144.5% in the third quarter. BNP Paribas Financial Markets now owns 2,100 shares of the financial services provider’s stock worth $53,000 after purchasing an additional 1,241 shares during the last quarter. Finally, Russell Investments Group Ltd. grew its holdings in Norwood Financial by 68.9% in the third quarter. Russell Investments Group Ltd. now owns 2,138 shares of the financial services provider’s stock worth $54,000 after purchasing an additional 872 shares during the last quarter. Institutional investors own 28.08% of the company’s stock.

Norwood Financial Company Profile

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.