Wayne Bank Announces Promotion in Loan Operations Department Jim Donnelly, President and Chief Executive Officer of Wayne Bank, is pleased to announce the promotion of Corissa O’Malley to Assistant Vice President and Loan Documentation Manager. In her new role, O’Malley will lead the New York and Pennsylvania retail loan processing and documentation teams. O’Malley joined the Bank in 2011, and has held several positions during her tenure, most recently as Residential Mortgage Processor and Loan Documentation Officer. According to Mr. Donnelly, “I’m very pleased to announce Corissa’s promotion, as her dedication to Wayne Bank over these last 13 years make her the ideal individual for this role. I look forward to her continued leadership as she oversees the residential loan documentation and processing department, while ensuring efficient systems are in place and loans remain in good standing.” O’Malley resides in South Canaan, PA, with her husband, Eugene, and their two children.
Wayne Bank Announces Promotion in Collections Department Wayne Bank President and Chief Executive Officer Jim Donnelly is pleased to announce the promotion of Gary Steich to Assistant Vice President and Retail Collections Officer. Steich joined the Bank in 2016 as a Collections Officer and obtained a bachelor’s degree in history with a minor in business from Wilkes University. Mr. Donnelly stated, “As a Retail Collections Officer, Gary works to collect outstanding debts so that our organization can continue to invest in our communities and take care of our customers. He does a great job of partnering with our customers to provide options and find the best solution. This promotion is extremely well earned.” Steich enjoys spending time with his wife, Michelle, and their two children, Novaleigh and Maverick.
Wayne Bank Announces Promotion in Loan Operations Department Jim Donnelly, President and Chief Executive Officer of Wayne Bank, is pleased to announce the promotion of Tonya Ryan to Assistant Vice President and Commercial Loans Documentation Officer. Ryan joined the bank in 2016 and has held several titles during her tenure. She holds a business degree from Lackawanna Community College. Mr. Donnelly stated, “I’m so pleased to announce this promotion. As a Commercial Loan Documentation Officer, Tonya is responsible for reviewing and overseeing all loan documents for community lending and community development purposes. She is a valued employee whose knowledge, expertise, and precision reflects in all aspects of her work.” Ryan resides in Beach Lake with her Husband, Scott. She has two children, Veara and Keith, and a one and half year-old grandson, whom she adores.
Wayne Bank Announces Norwood Financial Corp’s Earnings James O. Donnelly, President and Chief Executive Officer of Norwood Financial Corp (Nasdaq Global Market – NWFL), and its subsidiary Wayne Bank, announced net income for the three months ended December 31, 2023 of $355,000 compared to the net income of $7,140,000 earned in the three months ended December 31, 2022. The decrease in net income was due primarily to a $1,939,000 decrease in net interest income, and a $5,816,000 increase in the provision for credit losses. For the year ended December 31, 2023, net income totaled $16,759,000, a decrease of $12,474,000 from net income of $29,233,000 earned in year ended December 31, 2022. The decrease includes a $6,330,000 decrease in net interest income and a $4,648,000 increase in the provision for credit losses. Earnings per share (fully diluted) were $0.04 and $0.88 for the three-month periods ended December 31, 2023 and 2022, respectively. For the year ended December 31, 2023, earnings per share on a fully diluted basis were $2.07, compared to $3.58 for the year ended December 31, 2022. For the year ended December 31, 2023, the return on average assets was 0.79%, and the return on average equity was 9.67%, compared to 1.43% and 16.11%, respectively, for the year ended December 31, 2022. Total assets were $2.201 billion as of December 31, 2023. As of December 31, 2023, loans receivable were $1.604 billion, total deposits were $1.795 billion and stockholders’ equity was $181.1 million. Loans receivable increased $129.7 million to $1.604 billion at December 31, 2023, from $1.474 billion at December 31, 2022. The increase in loans receivable in 2023 included an $83.9 million increase in retail loans and a $45.8 million increase in commercial loans. For the three months and year ended December 31, 2023, net charge-offs totaled $3,181,000 and $6,078,000, respectively, compared to $232,000 and $344,000, respectively, for the corresponding periods in 2022. The increase in net charge-offs for the three months and year ended December 31, 2023 was due primarily to losses on one credit relationship in the amount of $2,806,000 and $4,806,000, respectively. Net interest income, on a fully taxable equivalent basis (fte), totaled $15,488,000 for the three months ended December 31, 2023, a decrease of $1,941,000 compared to the same period in 2022. For the year ended December 31, 2023, net interest income (fte) totaled $62,816,000, a decrease of $6,348,000 compared to 2022, due primarily to the increase in funding costs on interest-bearing liabilities in excess of the increase inthe yield earned on interest earning assets. The provision for credit losses totaled $6,116,000 for the three months endedDecember 31, 2023, compared to $300,000 for the three months ended December 31, 2022. The increase was required to maintain the allowance for credit losses at an adequate level based on the quarterly analysis and was due primarily to replenish the allowance for credit losses for charge-offs recorded during the period. For the year ended December 31, 2023, the provision for credit losses totaled $5,548,000 comparedto $900,000 for the year ended December 31, 2022. The $4,648,000 increase in the provision for credit losses was required to replenish the allowance for credit losses for charge-offs incurred during the year ended December 31, 2023. Other income for the three months ended December 31, 2023, totaled $2,123,000 compared to $1,926,000 for the similar period in 2022. Gains on the sale of loans, securities and foreclosed real estate increased $98,000, while service charges and fees increased $51,000. All other items of other income increased $48,000, net. Other income for the year ended December 31, 2023, totaled $8,124,000 compared to $9,932,000 in 2022, a decrease of $1,808,000 due primarily to income recognized in 2022 on previously acquired purchased impaired loans that were carried at a discount. For the year ended December 31, 2023, gains on the sale of loans and investment securities decreased $152,000 in the aggregate, compared to the year ended December 31, 2022. Gains on sales of foreclosed real estate owned decreased $347,000 during the year ended December 31, 2023, compared to the year ended December 31, 2022. Other expenses totaled $10,849,000 for the three months ended December 31, 2023, compared to $10,275,000 in the similar period of 2022. For the year ended December 31, 2023, other expenses totaled $43,497,000 compared to $41,044,000 for 2022, an increase of $2,453,000, or 6.0%. Mr. Donnelly commented, “Our results in 2023 reflect decreasing net interest spreads due to rising interest rates, which have impacted our cost of interest-bearing liabilities more than the increase in yield earned on interest-earning assets. Our Return on Average Assets was 0.79%, and our Return on Average Equity was 9.67%. We have continued to grow our core business lines, including an 8.8% increase in loans outstanding and a 3.90% increase in total deposits. Our cash dividend of $0.30 per share declared in the fourth quarter of 2023, represents a 3.5% increase over the same period of last year. We appreciate the opportunity to serve our Wayne Bank customers and our customers at the Bank of the Finger Lakes and Bank of Cooperstown locations. We continue to look for opportunities available to us as we service our growing base ofcustomers and enhance shareholder value in our Company.” Norwood Financial Corp is the parent company of Wayne Bank, which operatesfrom fourteen offices throughout Northeastern Pennsylvania and fifteen offices in Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. The Company’s stock is traded on the Nasdaq Global Market, under the symbol, “NWFL”. 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” 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 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. Non-GAAP Financial Measures This release references net interest income on a fully taxable-equivalent basis (fte), which is a non-GAAP (Generally Accepted Accounting Principles) financial measure. Fully taxable-equivalent net interest income was derived from GAAP interest income and net interest income using an assumed tax rate of 21%. We believe the presentation of net interest income on a fully taxable-equivalent basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. The following table reconciles net interest income to net interest income on a fully taxable-equivalent basis:(dollars in thousands)Three months endedDecember 31Year endedDecember 312023 2022 2023 2022Net interest income $15,293 $17,232 $62,067 $68,397Tax equivalent basis adjustmentusing 21% marginal tax rate 195 197 749 767Net interest income on a fullytaxable equivalent basis $15,488 $17,429 $62,816 $69,164 This release also references average tangible equity, which is also a non-GAAP financial measure. Average tangible equity is calculated by deducting average goodwill and other intangible assets from average stockholders’ equity. The Company believes that disclosure of tangible equity ratios enhances investor understanding of our financial position and improves the comparability of our financial data. The following table reconciles average equity to average tangible equity:Three months ended Year endedDecember 31, December 31,(dollars in thousands) 2023 2022 2023 2022Average equity $168,320 $162,762 $173,274 $181,499Average goodwill and other Intangibles (29,495) (29,582) (29,526) (29,618)Average tangible equity $138,825 $133,180 $143,748 $151,881
Wayne Bank Hires New Risk Director Jim Donnelly, president and chief executive officer of Wayne Bank, is pleased to announce the addition of Tracie Young as Wayne Bank’s new director of risk. Young joins the Bank as a Senior Vice President and will oversee the newly formed Risk Management department. She will work out of the Bank’s Corporate Office in Honesdale, PA. Young brings over 30 years of experience in the areas of risk management, internal audit, and compliance for financial institutions. In her new role, she will be responsible for overseeing the Bank’s risk management framework, which includes Audit, Compliance, Deposit Operations, Fraud, and Security & Facilities, while proactively identifying and addressing potential risks to the operations of the business. Mr. Donnelly stated, “We are excited to welcome Tracie to our team. Her extensive knowledge and dedication to effective risk management, will play a key role in safeguarding the interests of the Bank, while promoting a culture of informed decision-making.” Young resides in Honesdale, PA, with her husband, Neal. They have two daughters.
Wayne Bank Takes Part in Video Contest for Teens Throughout the Fall of 2023, Wayne Bank partnered with the American Bankers Association Foundation for their Lights, Camera, Save contest. The contest is a national competition that encourages teens to use video to communicate the value of sound money management and set their peers on a sound financial path. To participate, students ages 13-18, created a 30-second or less video on using money wisely. The contest was open to all filmmakers of all experience levels. They then submitted their entry forms and links to the videos to Wayne Bank’s promotional inbox. Wayne Bank hosted the first round of judging and selected one winning video to compete in the next round. Those winners were: Rebecca Dadig, Brenna Dahlgren, Rony Decker, Brooklyn Moody, and Zoie Hessling, all students from Honesdale High School. These students are part of the FBLA Club and had the guidance of their FBLA advisors Courtney Krajkovich, Lauren Cawley, and Laura Lockwood. Wayne Bank’s Steven R. Daniels, Senior Vice President and Director of Consumer Banking, and Kristen E. Lancia, CFMP, Vice President and Marketing Manager, recently had the pleasure of gifting each winning student a $100 gift card as a token of appreciation and congratulations for their hard work and amazing talent. Wayne Bank wishes them the best of luck as they move forward in the next and final stages of the contest! These winners will now compete on the national level for one of three cash prizes, including $5,000 for first place, $2,500 for second place, and $1,000 for third place. National contestants will face off head-to-head in the first round of national judging on the ABA Instagram page, which will determine which videos advance to the second and then final rounds of judging. Videos are judged on their quality, message, content, and the criteria set forth by the contest’s official rules. To learn more about Lights, Camera, Save! visit lightscamerasave.com.
Wayne Bank’s Vincent O’Bell Re-Appointed to Health and Welfare Authority Wayne Bank Executive Vice President and Chief Lending Officer, Vincent O’Bell, was recently reappointed to Chairman of the Scranton and Lackawanna Health and Welfare Authority. Mr. O’Bell has over 45 years in the financial industry. Mr. O’Bell also serves as a member of the investment and finance committee for the Congregation of the Sisters, Servants of the Immaculate Heart of Mary, a member of the finance counsel of Sacred Heart of Jesus Parish and a Board Member, Treasurer, and Paul Harris Fellow for the Rotary Club of Scranton. Mr. Donnelly stated, “Vinny is an integral part of our leadership team. His guidance, expertise, and commitment to our business customers and our employees are a big part of our success. We are proud to celebrate Vinny’s re-appointment as Chairman of Scranton and Lackawanna County’s Health and Welfare Authority. Vinny cares deeply about our communities, and I am confident the people of Lackawanna County will continue to benefit from him leading the Scranton and Lackawanna Health and Welfare Authority.”
Wayne Bank Increases Cash Dividend James O. Donnelly, President and Chief Executive Officer of Norwood Financial Corp (NASDAQ Global Market – NWFL), and its subsidiary Wayne Bank, announced that the Board of Directors declared a $0.30 per share quarterly dividend, payable February 1, 2024, to shareholders of record as of January 12, 2024. The $0.30 per share represents an increase of 3.5% over the cash dividend declared in the third quarter of this year and the fourth quarter of 2022. During 2023, total cash dividends declared were $1.17 per share, compared to the $1.13 per share declared in 2022. Mr. Donnelly commented, “The Board is extremely pleased to provide our shareholders with this increase in their quarterly dividend. It reflects the Company’s financial strength and strong capital position which has contributed to our solid performance. We are also very proud that 2023 marks the thirty-second consecutive year of dividend increases for the Company.” Norwood Financial Corp, through its subsidiary, Wayne Bank operates fourteen offices in Northeastern Pennsylvania and fifteen offices in Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. As of September 30, 2023, the Company had total assets of $2.180 billion, loans outstanding of $1.611 billion, total deposits of $1.747 billion and total stockholders’ equity of $164.7 million. The Company’s stock is traded on the Nasdaq Global Market under the symbol “NWFL”. Forward-Looking Statements The foregoing material may contain forward-looking statements. Norwood cautions that such statements may be subject to a number of risks and uncertainties which may cause actual results to differ materially from those currently anticipated, and therefore readers should not place undue reliance on any forward-looking statements. Those risks and uncertainties include, but are not limited to, our ability to pay or increase cash dividends in the future, the continued financial strength, solid performance and strong capital position of the Company, changes in federal and state laws, changes in the absolute and relative levels of interest rates, the impact of the COVID-19 pandemic on the Company’s results of operation and financial condition, the ability to control costs and expenses, demand for real estate, costs associated with cybercrime, general economic conditions and the effectiveness of governmental responses thereto. Norwood Financial Corp does not undertake and specifically disclaims any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
Wayne Bank Supports Local Animal Shelter Jim Donnelly, President and Chief Executive Officer of Wayne Bank, is pleased to present the Olga and Dorothea Dessin Animal Society with a donation of $10,000 on behalf of Wayne Bank. Dessin Animal Shelter is a not-for-profit organization that has greatly supported the needs of the local community and has provided ongoing animal housing, medical care, and adoption services for over 50 years. “Wayne Bank is committed to helping and giving back to the communities we serve. We care about the welfare of not only the people in our community, but our animal companions as well. We are proud to partner with Dessin Animal Shelter to help aid in providing humane animal rescue, medical and daily care, and pet adoption services in Wayne County,” stated Mr. Donnelly. These funds will directly impact the Dessin Animal Shelter and will be used for facility renovations, a new septic and sewage system, HVCC, electrical system repairs, and kennel restorations. Wayne Bank is a subsidiary of Norwood Financial Corp., Member FDIC, and is located in Honesdale, Pennsylvania. The Bank has 29 Community Offices serving Wayne, Pike, Monroe, Lackawanna, and Luzerne Counties in Pennsylvania, along with Delaware, Sullivan, Otsego, Ontario, and Yates Counties in New York, including those offices operating under the Bank of Cooperstown and Bank of the Finger Lakes brands. The stock trades on the NASDAQ Global Market under the symbol— NWFL.
Wayne Bank Joins ABA for Anti-Phishing Campaign Wayne Bank has joined the American Bankers Association and banks across the nation to promote an industry-wide campaign educating consumers about the persistent threat of phishing scams. The FDIC estimates that consumers lost $8.8 billion to phishing and other fraud in 2022, an increase of 44% compared to 2021. To combat phishing, the award winning #BanksNeverAskThat campaign uses attention-grabbing humor and other engaging content to empower consumers to identify fake bank communications asking for sensitive information like their passwords and social security numbers. “We are happy to be partnering with the American Bankers Association for this campaign. With fraud and scams unfortunately on the rise, we want to be vigilant in protecting our customers and educate them on the importance of keeping their personal information secure”, stated Jillian Guenther, Wayne Bank Vice President, and Fraud Officer. “This campaign encourages our customers to be mindful of the lengths to which scammers and fraudsters will go to capture their personal information. Being able to identify red flags and warning signs are key in preventing fraud.” Wayne Bank has been sharing eye catching and engaging short videos and consumer tips on social media and in their Community Offices designed to highlight common phishing schemes. Because cybersecurity education and fraud awareness can often be dull and forgettable to many consumers, the #BanksNeverAskThat campaign is designed to be bright and bold with a bit of comedy. Consumers are directed to BanksNeverAskThat.com where they will find a new interactive quiz, the “Scam City” video game, engaging videos, and tips on how to spot phishing scams. Additionally, the campaign is offering a Spanish language version of the website, BancosNuncaPidenEso.com, and providing of other #BanksNeverAskThat consumer resources in Spanish. For more information about phishing scams and how to stop fraudsters in their tracks, visit www.BanksNeverAskThat.com.
