Date of Report (Date of earliest event reported)
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January 27, 2012
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NORWOOD FINANCIAL CORP.
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(Exact name of registrant as specified in its charter)
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Pennsylvania
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0-28364
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23-2828306
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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717 Main Street, Honesdale, Pennsylvania
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18431
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
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(570) 253-1455
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Not Applicable
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(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
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NORWOOD FINANCIAL CORP.
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|||
Date: January 27, 2012
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By:
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/s/ Lewis J. Critelli
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Lewis J. Critelli
President and Chief Executive Officer
(Duly Authorized Representative)
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Three months ended | Year ended | |||||||||||||||
(dollars in thousands)
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December 31
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December 31
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||||||||||||||
2011
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2010
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2011
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2010
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|||||||||||||
Net interest income
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$ | 6,226 | $ | 4,916 | $ | 22,588 | $ | 19,664 | ||||||||
Tax equivalent basis adjustment using 34% marginal tax rate
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322 | 285 | 1,176 | 998 | ||||||||||||
Net interest income on a fully taxable equivalent basis
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$ | 6,548 | $ | 5,201 | $ | 23,764 | $ | 20,662 |
Contact:
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William S. Lance
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Executive Vice President &
Chief Financial Officer
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NORWOOD FINANCIAL CORP.
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570-253-8505
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www.waynebank.com
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||||||||
NORWOOD FINANCIAL CORP.
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||||||||
Consolidated Balance Sheets
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||||||||
(dollars in thousands, except share data)
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||||||||
(unaudited)
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||||||||
December 31
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||||||||
2011
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2010
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|||||||
ASSETS
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||||||
Cash and due from banks
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$ | 8,974 | $ | 5,782 | ||||
Interest-bearing deposits with banks
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12,449 | 7,843 | ||||||
Federal funds sold
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0 | 3,000 | ||||||
Cash and cash equivalents
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21,423 | 16,625 | ||||||
Securities available for sale
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150,263 | 145,815 | ||||||
Securities held to maturity, fair value 2011: $177 and 2010: $179
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171 | 170 | ||||||
Loans receivable (net of unearned Income)
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457,907 | 356,855 | ||||||
Less: Allowance for loan losses
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5,458 | 5,616 | ||||||
Net loans receivable
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452,449 | 351,239 | ||||||
Investment in FHLB Stock, at cost
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3,593 | 3,361 | ||||||
Bank premises and equipment, net
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7,479 | 4,904 | ||||||
Bank owned life insurance
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11,887 | 8,249 | ||||||
Foreclosed real estate owned
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2,910 | 748 | ||||||
Accrued interest receivable
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2,468 | 2,166 | ||||||
Goodwill and other intangibles
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10,283 | 13 | ||||||
Other assets
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5,888 | 3,715 | ||||||
TOTAL ASSETS
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$ | 668,814 | $ | 537,005 | ||||
LIABILITIES
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||||||||
Deposits:
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||||||||
Non-interest bearing demand
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$ | 71,959 | $ | 62,238 | ||||
Interest-bearing
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453,808 | 331,627 | ||||||
Total deposits
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525,767 | 393,865 | ||||||
Short-term borrowings
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21,794 | 33,309 | ||||||
Other borrowings
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27,670 | 38,000 | ||||||
Accrued interest payable
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1,321 | 1,536 | ||||||
Other liabilities
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4,201 | 2,597 | ||||||
TOTAL LIABILITIES
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580,753 | 469,307 | ||||||
STOCKHOLDERS' EQUITY
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||||||||
Common Stock, $.10 par value, authorized 10,000,000 shares
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||||||||
issued: 2011: 3,371,866 shares, 2010: 2,840,872 shares
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337 | 284 | ||||||
Surplus
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24,660 | 9,826 | ||||||
Retained earnings
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62,307 | 58,648 | ||||||
Treasury stock, at cost: 2011: 87,370 shares, 2010: 72,068 shares
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(2,558 | ) | (2,197 | ) | ||||
Accumulated other comprehensive income
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3,315 | 1,137 | ||||||
TOTAL STOCKHOLDERS' EQUITY
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88,061 | 67,698 | ||||||
TOTAL LIABILITIES AND
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||||||||
STOCKHOLDERS' EQUITY
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$ | 668,814 | $ | 537,005 |
NORWOOD FINANCIAL CORP.
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||||||||||||||||
Consolidated Statements of Income
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||||||||||||||||
(dollars in thousands, except per share data)
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||||||||||||||||
(unaudited)
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|||||||||||||||
Three Months Ended December 31
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Year ended December 31
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|||||||||||||||
2011
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2010
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2011
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2010
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|||||||||||||
INTEREST INCOME
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||||||||||||||||
Loans receivable, including fees
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$ | 6,372 | $ | 5,207 | $ | 23,289 | $ | 21,101 | ||||||||
Securities
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1,087 | 1,052 | 4,428 | 4,529 | ||||||||||||
Other
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11 | 14 | 53 | 57 | ||||||||||||
Total Interest income
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7,470 | 6,273 | 27,770 | 25,687 | ||||||||||||
INTEREST EXPENSE
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||||||||||||||||
Deposits
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980 | 951 | 3,851 | 4,283 | ||||||||||||
Short-term borrowings
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17 | 30 | 92 | 117 | ||||||||||||
Other borrowings
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247 | 376 | 1,239 | 1,623 | ||||||||||||
Total Interest expense
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1,244 | 1,357 | 5,182 | 6,023 | ||||||||||||
NET INTEREST INCOME
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6,226 | 4,916 | 22,588 | 19,664 | ||||||||||||
PROVISION FOR LOAN LOSSES
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500 | 270 | 1,575 | 1,000 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
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5,726 | 4,646 | 21,013 | 18,664 | ||||||||||||
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||||||||||||||||
OTHER INCOME
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||||||||||||||||
Service charges and fees
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533 | 551 | 2,255 | 2,231 | ||||||||||||
Income from fiduciary activities
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85 | 105 | 409 | 405 | ||||||||||||
Net realized gains on sales of securities
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205 | 68 | 973 | 448 | ||||||||||||
Gains on sale of loans and servicing rights
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(11 | ) | 99 | 271 | 307 | |||||||||||
Earnings and proceeds on life insurance policies
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133 | 97 | 463 | 391 | ||||||||||||
Other
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83 | 91 | 364 | 282 | ||||||||||||
Total other income
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1,028 | 1,011 | 4,735 | 4,064 | ||||||||||||
OTHER EXPENSES
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||||||||||||||||
Salaries and employee benefits
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2,136 | 1,663 | 7,848 | 6,507 | ||||||||||||
Occupancy, furniture and equipment
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542 | 370 | 1,837 | 1,560 | ||||||||||||
Data processing related
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220 | 196 | 855 | 803 | ||||||||||||
Taxes, other than income
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121 | 150 | 535 | 524 | ||||||||||||
Professional Fees
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266 | 292 | 1,283 | 650 | ||||||||||||
FDIC Insurance assessment
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76 | 117 | 393 | 474 | ||||||||||||
Foreclosed real estate owned
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170 | 9 | 578 | 41 | ||||||||||||
Other
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458 | 508 | 2,484 | 2,194 | ||||||||||||
Total other expenses
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3,989 | 3,305 | 15,813 | 12,753 | ||||||||||||
INCOME BEFORE TAX
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2,765 | 2,352 | 9,935 | 9,975 | ||||||||||||
INCOME TAX EXPENSE
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768 | 544 | 2,579 | 2,662 | ||||||||||||
NET INCOME
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$ | 1,997 | $ | 1,808 | $ | 7,356 | $ | 7,313 | ||||||||
Basic earnings per share
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$ | 0.61 | $ | 0.65 | $ | 2.39 | $ | 2.65 | ||||||||
Diluted earnings per share
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$ | 0.61 | $ | 0.65 | $ | 2.39 | $ | 2.64 |
NORWOOD FINANCIAL CORP.
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||||||||
Financial Highlights (Unaudited)
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||||||||
(dollars in thousands, except per share data)
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||||||||
For the Three Months Ended December 31
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2011
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2010
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||||||
Net interest income
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$ | 6,226 | $ | 4,916 | ||||
Net income
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1,997 | 1,808 | ||||||
Net interest spread (fully taxable equivalent)
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4.03 | % | 3.74 | % | ||||
Net interest margin (fully taxable equivalent)
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4.21 | % | 4.04 | % | ||||
Return on average assets
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1.18 | % | 1.33 | % | ||||
Return on average equity
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9.03 | % | 10.38 | % | ||||
Basic earnings per share
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$ | 0.61 | $ | 0.65 | ||||
Diluted earnings per share
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$ | 0.61 | $ | 0.65 | ||||
For the Year Ended December 31
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||||||||
Net interest income
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$ | 22,588 | $ | 19,664 | ||||
Net income
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7,356 | 7,313 | ||||||
Net interest spread (fully taxable equivalent)
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3.86 | % | 3.72 | % | ||||
Net interest margin (fully taxable equivalent)
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4.08 | % | 4.04 | % | ||||
Return on average assets
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1.18 | % | 1.37 | % | ||||
Return on average equity
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9.26 | % | 10.87 | % | ||||
Basic earnings per share
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$ | 2.39 | $ | 2.65 | ||||
Diluted earnings per share
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$ | 2.39 | $ | 2.64 | ||||
As of December 31
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||||||||
Total Assets
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$ | 668,814 | $ | 537,005 | ||||
Total loans receivable
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457,907 | 356,855 | ||||||
Allowance for loan losses
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5,458 | 5,616 | ||||||
Total deposits
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525,767 | 393,865 | ||||||
Stockholders' equity
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88,061 | 67,698 | ||||||
Trust Assets under management
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107,696 | 113,693 | ||||||
Book value per share
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$ | 26.81 | $ | 24.45 | ||||
Equity to total assets
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13.17 | % | 12.61 | % | ||||
Allowance to total loans receivable
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1.19 | % | 1.57 | % | ||||
Nonperforming loans to total loans
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1.71 | % | 1.14 | % | ||||
Nonperforming assets to total assets
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1.60 | % | 0.90 | % |
NORWOOD FINANCIAL CORP.
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|||||||||||||||||||
Consolidated Balance Sheets (unaudited)
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||||||||||||||||||||
(dollars in thousands)
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||||||||||||||||||||
Dec 31
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Sept 30
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June 30
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March 31
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Dec 31
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||||||||||||||||
2011
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2011
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2011
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2011
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2010
|
||||||||||||||||
ASSETS
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||||||||||||||||||||
Cash and due from banks
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$ | 8,974 | $ | 12,472 | $ | 9,269 | $ | 5,670 | $ | 5,782 | ||||||||||
Interest-bearing deposits with banks
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12,449 | 25,577 | 34,213 | 13,864 | 7,843 | |||||||||||||||
Federal funds sold
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0 | 0 | 1,729 | 0 | 3,000 | |||||||||||||||
Cash and cash equivalents
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21,423 | 38,049 | 45,211 | 19,534 | 16,625 | |||||||||||||||
Securities available for sale
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150,263 | 145,734 | 152,275 | 143,104 | 145,815 | |||||||||||||||
Securities held to maturity
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171 | 171 | 170 | 170 | 170 | |||||||||||||||
Loans receivable (net of unearned Income)
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457,907 | 454,832 | 464,646 | 350,128 | 356,855 | |||||||||||||||
Less: Allowance for loan losses
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5,458 | 5,345 | 5,267 | 5,780 | 5,616 | |||||||||||||||
Net loans receivable
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452,449 | 449,487 | 459,379 | 344,348 | 351,239 | |||||||||||||||
Investment in FHLB stock
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3,593 | 3,782 | 3,981 | 3,193 | 3,361 | |||||||||||||||
Bank premises and equipment, net
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7,479 | 7,601 | 7,672 | 4,798 | 4,904 | |||||||||||||||
Foreclosed real estate owned
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2,910 | 3,355 | 1,755 | 948 | 748 | |||||||||||||||
Other assets
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30,526 | 30,702 | 33,352 | 14,831 | 14,143 | |||||||||||||||
TOTAL ASSETS
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$ | 668,814 | $ | 678,881 | $ | 703,795 | $ | 530,926 | $ | 537,005 | ||||||||||
LIABILITIES
|
||||||||||||||||||||
Deposits:
|
||||||||||||||||||||
Non-interest bearing demand
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$ | 71,959 | $ | 78,500 | $ | 73,718 | $ | 62,736 | $ | 62,238 | ||||||||||
Interest-bearing deposits
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453,808 | 448,013 | 464,571 | 334,384 | 331,627 | |||||||||||||||
Total deposits
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525,767 | 526,513 | 538,289 | 397,120 | 393,865 | |||||||||||||||
Other borrowings
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49,464 | 59,692 | 74,942 | 60,465 | 71,309 | |||||||||||||||
Other liabilities
|
5,522 | 5,763 | 5,929 | 4,766 | 4,133 | |||||||||||||||
TOTAL LIABILITIES
|
580,753 | 591,968 | 619,160 | 462,351 | 469,307 | |||||||||||||||
STOCKHOLDERS' EQUITY
|
88,061 | 86,913 | 84,635 | 68,575 | 67,698 | |||||||||||||||
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
$ | 668,814 | $ | 678,881 | $ | 703,795 | $ | 530,926 | $ | 537,005 |
NORWOOD FINANCIAL CORP.
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||||||||||||||||||||
Consolidated Statements of Income (unaudited)
|
||||||||||||||||||||
(dollars in thousands, except per share data)
|
||||||||||||||||||||
31-Dec
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30-Sep
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30-Jun
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31-Mar
|
31-Dec
|
||||||||||||||||
Three months ended
|
2011
|
2011
|
2011
|
2011
|
2010
|
|||||||||||||||
INTEREST INCOME
|
||||||||||||||||||||
Loans receivable, including fees
|
$ | 6,372 | $ | 6,521 | $ | 5,468 | $ | 4,928 | $ | 5,207 | ||||||||||
Securities
|
1,087 | 1,116 | 1,135 | 1,090 | 1,052 | |||||||||||||||
Other
|
11 | 18 | 16 | 8 | 14 | |||||||||||||||
Total Interest income
|
7,470 | 7,655 | 6,619 | 6,026 | 6,273 | |||||||||||||||
INTEREST EXPENSE
|
||||||||||||||||||||
Deposits
|
980 | 1,054 | 932 | 885 | 951 | |||||||||||||||
Borrowings
|
264 | 338 | 369 | 360 | 406 | |||||||||||||||
Total Interest expense
|
1,244 | 1,392 | 1,301 | 1,245 | 1,357 | |||||||||||||||
NET INTEREST INCOME
|
6,226 | 6,263 | 5,318 | 4,781 | 4,916 | |||||||||||||||
PROVISION FOR LOAN LOSSES
|
500 | 425 | 430 | 220 | 270 | |||||||||||||||
NET INTEREST INCOME AFTER PROVISION
|
||||||||||||||||||||
FOR LOAN LOSSES
|
5,726 | 5,838 | 4,888 | 4,561 | 4,646 | |||||||||||||||
OTHER INCOME
|
||||||||||||||||||||
Service charges and fees
|
533 | 581 | 592 | 549 | 551 | |||||||||||||||
Income from fiduciary activities
|
85 | 106 | 105 | 113 | 105 | |||||||||||||||
Net realized gains (losses) on sales of securities
|
205 | 544 | 12 | 212 | 68 | |||||||||||||||
Gains on sale of loans and servicing rights
|
(11 | ) | 41 | 98 | 143 | 99 | ||||||||||||||
Earnings and proceeds on life insurance
|
133 | 130 | 106 | 94 | 97 | |||||||||||||||
Other
|
83 | 104 | 80 | 97 | 91 | |||||||||||||||
Total other income
|
1,028 | 1,506 | 993 | 1,208 | 1,011 | |||||||||||||||
OTHER EXPENSES
|
||||||||||||||||||||
Salaries and employee benefits
|
2,136 | 2,129 | 1,882 | 1,701 | 1,663 | |||||||||||||||
Occupancy, furniture and equipment, net
|
542 | 489 | 408 | 398 | 370 | |||||||||||||||
Foreclosed real estate owned
|
170 | 372 | 17 | 19 | 9 | |||||||||||||||
FDIC insurance assessment
|
76 | 102 | 95 | 120 | 117 | |||||||||||||||
Other
|
1,065 | 1,262 | 1,534 | 1,296 | 1,146 | |||||||||||||||
Total other expenses
|
3,989 | 4,354 | 3,936 | 3,534 | 3,305 | |||||||||||||||
INCOME BEFORE TAX
|
2,765 | 2,990 | 1,945 | 2,235 | 2,352 | |||||||||||||||
INCOME TAX EXPENSE
|
768 | 775 | 461 | 575 | 544 | |||||||||||||||
NET INCOME
|
$ | 1,997 | $ | 2,215 | $ | 1,484 | $ | 1,660 | $ | 1,808 | ||||||||||
Basic earnings per share
|
$ | 0.61 | $ | 0.67 | $ | 0.50 | $ | 0.60 | $ | 0.65 | ||||||||||
|
||||||||||||||||||||
Diluted earnings per share
|
$ | 0.61 | $ | 0.67 | $ | 0.50 | $ | 0.60 | $ | 0.65 | ||||||||||
Book Value per share
|
$ | 26.81 | $ | 26.40 | $ | 25.71 | $ | 24.78 | $ | 24.45 | ||||||||||
Return on average equity
|
9.03 | % | 10.17 | % | 7.88 | % | 9.76 | % | 10.38 | % | ||||||||||
Return on average assets
|
1.18 | % | 1.28 | % | 1.00 | % | 1.27 | % | 1.33 | % | ||||||||||
Net interest spread (fte)
|
4.03 | % | 3.94 | % | 3.75 | % | 3.70 | % | 3.74 | % | ||||||||||
Net interest margin (fte)
|
4.21 | % | 4.13 | % | 3.98 | % | 3.98 | % | 4.04 | % | ||||||||||
Allowance for loan losses to total loans
|
1.19 | % | 1.18 | % | 1.13 | % | 1.65 | % | 1.57 | % | ||||||||||
Net charge-offs to average loans (annualized)
|
0.34 | % | 0.30 | % | 1.02 | % | 0.06 | % | 0.19 | % | ||||||||||
Nonperforming loans to total loans
|
1.71 | % | 1.38 | % | 1.90 | % | 2.11 | % | 1.14 | % | ||||||||||
Nonperforming assets to total assets
|
1.60 | % | 1.42 | % | 1.50 | % | 1.57 | % | 0.90 | % | ||||||||||