Wayne Bank Announces Third Quarter Earnings James O. Donnelly, President and Chief Executive Officer of Norwood Financial Corp. (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced earnings for the three months ended September 30, 2023 of $4,119,000, which represents a decrease of $3,990,000, from the $8,109,000 earned in the same three-month period of 2022. The decrease in earnings was due to a $3.1 million decrease in net interest income, an $882,000 increase in the provision for credit losses, and a $1.1 million increase in total other expenses during the three-months ended September 30, 2023. For the three months ended September 30, 2023, earnings per share (fully diluted) were $0.51, which represents a decrease from the $1.00 earned in the three months ended September 30, 2022. The annualized returns on average assets and average tangible equity for the three-month period ended September 30, 2023, were 0.76% and 11.22%, respectively, compared to 1.57% and 21.48% for the three-month period ended September 30, 2022. Net income for the nine months ended September 30, 2023, totaled $16,405,000, which is $5,688,000 lower than the same period of 2022. The decrease in net income includes a $4,390,000 decrease in net interest income, a $2.0 million decrease in total other income, and a $1.9 million increase in total other expenses during the nine months ended September 30, 2023. Earnings per share (fully diluted) for the nine months ended September 30, 2023, totaled $2.03 per share compared to $2.71 per share for the ninemonths ended September 30, 2022. As of September 30, 2023, total assets were $2.179 billion, loans receivable were $1.611 billion, total deposits were $1.747 billion and stockholders’ equity was $164.7 million. For the three months ended September 30, 2023, net interest income, on a fully taxable equivalent basis (fte), totaled $15,224,000, which represents a decrease of $3,145,000, compared to the three months ended September 30, 2022. Net interest margin (fte) for the three months ended September 30, 2023 was 2.94%, compared to 3.74% for the three months ended September 30, 2022. Net interest income (fte) for the nine months ended September 30, 2023 totaled $47,328,000, a decrease of $4,406,000, compared to the nine months ended September 30,2022, due primarily to the increased cost of interest-bearing liabilities in excess of the increase in the yield earned on interestearning assets. The net interest margin (fte) for the nine months ended September 30, 2023 was 3.09%, compared to 3.52% for the nine months ended September 30, 2022. For the three months ended September 30, 2023, the Company recorded a provision for credit losses in the amount of $882,000 compared to $0 in the three-month period ended September 30, 2022. The increase in the provision for credit losses was required to replenish the allowance for credit losses to a level deemed appropriate after recognizing $2.3 million of credit losses during the current period. The current period losses include a $2.0 million charge-off resulting from deterioration in one large commercial relationship. The remaining balance of the relationship was transferred to nonperforming status, resulting in an increase in nonperforming loans and nonperforming assets. For the nine-month period ended September 30, 2023, the Company recorded a release of provision for credit losses in the amount of $568,000, compared to a provision of $600,000 in the nine-month period ended September 30, 2022. Total other income for the three months ended September 30, 2023 was $2,306,000, compared to $2,178,000 for the three months ended September 30, 2022. For the nine months ended September 30, 2023, total other income was $6,001,000, compared to $8,006,000 in the same period of 2022. The decrease was due primarily to income recognized in 2022 on previously acquired purchased impaired loans that were carried at a discount. Total other expenses were $11,276,000 for the three months ended September 30, 2023, compared to $10,139,000 for the three months ended September 30, 2022. For the nine months ended September 30, 2023, total other expenses were $32,649,000, compared to $30,768,000 for the nine months ended September 30, 2022. The increase was due primarily to a $1,069,000 increase in salaries and employee benefit costs duringthe nine months ended September 30, 2023. Mr. Donnelly commented, “Our results for the first nine months of 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. We continue to compare favorably to peer banks who have also reported a reduction in their financial performance. We will continue to search out opportunities to maintain our position as a premier community bank, and to serve our local communities with their financial needs. We appreciate the opportunity to serve our expanded base of stockholders and customers.” Norwood Financial Corp is the parent company of Wayne Bank, which operates from fourteen offices throughout Northeastern Pennsylvania and fifteen offices in Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. The Company’s stock trades 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, the risks and uncertainty posed by, and the continued effect, and impact of, the COVID-19 pandemic on the economy and the Company’s results of operation and financial condition, 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 industrypractice.
The Wayne Bank to Host Food Drive for Wayne County Food Pantry From November 13th through the 17th, Wayne Bank’s Honesdale Main Street Community Office will host a food drive to support the Wayne County Food Pantry. The Office will collect non-perishable food items including food, paper products, and personal care items during regular lobby hours. “There are many local families in need this time of year,” explained Jill Hessling, Vice President and Regional Manager for Wayne Bank. “Wayne Bank is committed to not only supporting our local neighbors with their financial goals, but we also care about their well-being and understand the importance of giving back. All items collected will be donated to the Wayne County Food Pantry. Just in time for Thanksgiving and the holiday season. Please consider taking a moment of your day to stop by with a donation that can help make a difference in our community.” The Wayne County Pantry Program is sponsored through County Government. It is operated under the leadership of the Wayne County Pantry Board which is comprised of private citizens. Board members are also coordinators at each of the pantry sites. The Wayne County Pantry Program has five sites located in strategic areas of the County to serve eligible County residents. The five food pantry sites can be found in Honesdale, Lakeville, Newfoundland, Lakewood, and Damascus. If you are interested in becoming involved with the food pantry or would like further information, please contact 570-253-4262 or visit https://www.waynecountypa.gov/169/Pantry.
Wayne Bank Employee Honored as Future Under 40 Award Winner Steven Daniels, Wayne Bank’s Senior Vice President and Director of Consumer Banking, was announced as a winner of the Pennsylvania Bankers Association’s (“PA Bankers”) Future Under 40 Awards. The Future Under 40 Award recognizes influential senior leaders who inspire and promote the growth of young professionals in their industry. They are honored as young leaders who have made a tremendous impact in their institution, community, and industry. Steven Daniels, Wayne Bank’s Senior Vice President and Director of Consumer Banking, was announced as a winner of the Pennsylvania Bankers Association’s (“PA Bankers”) Future Under 40 Awards. The Future Under 40 Award recognizes influential senior leaders who inspire and promote the growth of young professionals in their industry. They are honored as young leaders who have made a tremendous impact in their institution, community, and industry. Mr. Daniels joined Wayne Bank in 2011 and has held various roles during his tenure. He holds a bachelor’s degree from Penn State University, is a graduate of the PBA Advanced School of Banking and is presently enrolled in the ABA Stonier Graduate School of Banking. In addition to serving as Co-Chair of the United Way of Lackawanna and Wayne Counties, Mr. Daniels is also the Co-Chair of the Talent and Financial Development Committee of Wayne Tomorrow, as well as past President of the Honesdale Area Jaycees. A lifelong resident of Wayne County, he resides in Milanville with his wife, Ali, and son, Russell. Jim Donnelly, President and Chief Executive Officer of Wayne Bank stated, “Steve has played a key leadership role in driving Wayne Bank’s consumer banking products and services. His guidance, expertise, and commitment to our customers have helped ongoing initiatives to grow the Bank and support shareholder value. Under his leadership, our consumer banking division has made significant advancements in high-tech financial solutions while maintaining our relationship-based banking standard for our customers. He is extremely deserving of this award, and we are proud to celebrate his recognition.” PA Bankers has been bringing banks and bankers together for more than 125 years to learn, grow, serve, and engage with their peers, communities, and lawmakers. The association has built a strong reputation as a leading advocate for pro-banking policies at the state and federal levels, as well as the delivery of quality education, products and services for banks of all sizes and their employees. 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 Promotes Collin Ennis Jim Donnelly, President and Chief Executive Officer of Wayne Bank, is pleased to announce the promotion of Collin Ennis to Commercial Loan Officer. According to Mr. Donnelly, “I’m so proud to announce this promotion of Collin. His expertise and client skills have made him an asset to our company, and his new role will allow Collin to work more closely with our commercial customers, to help them grow and expand their business. Since first joining Wayne Bank in 2022, Collin has served as a Commercial Loan Associate. In Collin’s new role, he will be responsible for providing exceptional customer service, initiating new business, and deepening current business relationships within our Wayne and Pike County service areas. He is a graduate of the University of Scranton, where he earned a Bachelor of Science Degree in Finance.
Wayne Bank Promotes Derek Bellinger Jim Donnelly, President and Chief Executive Officer of Wayne Bank, is happy to announce the promotion of Derek Bellinger to Residential Mortgage Sales Manager. According to Mr. Donnelly, “I’m so pleased to announce this promotion. Derek’s extensive experience and commitment to the communities we serve, makes him an asset to our mortgage team and well-deserving of this promotion. Derek has acted as a mentor to our new mortgage team members for a number of years. His deep knowledge of the product set, natural leadership style and inherent kindness make him ideal for this role. In Derek’s new role, he will be responsible for managing the sales efforts of our team of Mortgage Originators to meet and exceed our customer expectations.” Derek has 27 years of banking and management experience and has held several titles during his banking career, including Commercial Loan Officer, Financial Center Manager, and Multi-Site Branch Manager. Derek is an active member of the community and is involved in many non-profit organizations. He currently serves on the Board of Directors of The Human Resources Center, The Chamber of the Northern Poconos, and the Honesdale Lions Club. Derek holds a Master of Science degree in Human Resources Administration from the University of Scranton.
Wayne Bank Ranks Amongst Top Banks in the Country Wayne Bank, a subsidiary of Norwood Financial Corp (Nasdaq Global Market – NWFL), was recently ranked by Bank Director magazine as one of the top 25 best banks in the country in their Ranking Banking, The Best US Banks 2023 publication. Wayne Bank was also ranked number ten (#10) in the country for banks in the $1B-$5B asset size category. Bank Director applied a consistent set of metrics to determine the best banks, based on calendar year 2022 results. Wayne Bank was evaluated on its profitability, capital adequacy, asset quality, and total shareholder return. For this 2023 study, Bank Director identified The Best U.S. Banks 2023: those that balance growth and profitability, deliver long-term shareholder value, and execute their goals in a safe and sound manner. They also examined factors that drive performance, including growth, leadership, board oversight, and technological innovation. President and Chief Executive Officer, James O. Donnelly, stated, “We are delighted and honored to be on both prestigious lists of The Best U.S. Banks 2023. Our inclusion in the Top 25 Banks in the Country overall is an accomplishment we have never before achieved. Last year, Wayne Bank was ranked at number seventy-one for banks in our asset size. This year we are proud to say that our dedication and commitment to shareholders, employees, customers, and our communities has helped us rise to number ten in our asset size. This is a testament to the dedication of our employees and to executing our strategic vision.”
Wayne Bank Staff Member Receives Honor Student Recognition Anna Van Acker, Assistant Vice President and Commercial Loan Officer of Wayne Bank, achieved honor student status from the Pennsylvania Bankers Association’s (PA Bankers’) 2023 School of Commercial Lending. Honor students are selected for outstanding academic achievement on a final examination. Jim Donnelly, President and Chief Executive Officer of Wayne Bank, stated, “Anna’s strong work ethic and dedication to her customers makes her an asset to our commercial lending team. I am so pleased, but not at all surprised by her tremendous achievement. Her commitment to ensuring she remains knowledgeable on the latest banking products and procedures for her co-workers and her customers is admirable. Congratulations, Anna!” Van Acker has served the banking industry for five years and joined Wayne Bank in 2021 as a Commercial Loan Associate. She specializes in commercial property mortgages and construction loans, equipment financing and lines of credit, customized acquisition financing, capital projects, and USDA loans. She is very active in the community and serves on the boards of the Wayne Pike Building Industry Association, Pennsylvania Builders Association, and Professional Women in Building. Anna holds a bachelor’s degree from the University of Scranton. PA Bankers’ School of Commercial Lending provides educational content similar to 200- and 300-level college course study. Topics for this program include: business development, credit structuring, the practical application of commercial lending knowledge, and client and internal communication. PA Bankers has been bringing banks and bankers together for more than 125 years to learn, grow, serve and engage with their peers, communities and lawmakers. The association has built a strong reputation as a leading advocate for pro-banking policies at the state and federal levels, as well as the delivery of quality education, products and services for banks of all sizes and their employees. 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
Norwood Financial Corp Rejoins Russell 3000® Index Logo Mockup by Mithun Mitra Jim Donnelly, President and Chief Executive Officer of Norwood Financial Corp (NASDAQ Global Market – NWFL) and its subsidiary, Wayne Banks pleased to announce that the Company has been included in the Russell 3000® Index, as part of the 2023 Russell U.S. Indexes annual reconstitution.The Russell 3000® Index encompasses and tracks the performance of the 3,000 largest traded U.S. stocks, based on market capitalization. “Norwood Financial Corp is honored to be a part of the Russell 3000 Index, alongside some of the top performing companies in the U.S. This distinguished designation shows our commitment to our shareholders and is a testament to our strong capital position and credit quality metrics. This inclusion will continue to drive awareness of Norwood Financial Corp as an appealing investment as we continue to execute our strategic plans for growth,” stated Mr. Donnelly. The Russell 3000 Index is comprised of the large-cap Russell 1000 and the small-cap Russell 2000 index. The top 1,000 companies having the highest market capitalization make up the Russell 1000, while the next largest 2,000 make up the Russell 2000.
Local Foundation and Wayne Bank Supports Community Foundation The Board of The John and Helen Villaume Foundation, a fiduciary of the Wayne Bank, announced that the Wayne County Community Foundation was selected to receive one of the Foundation’s 2023 community grant awards. Ryanne Jennings, President & CEO, received a check in the amount of $5,000.00 from Villaume Foundation board members, Jon Villaume and Tracy L. Schwarz. The John and Helen Villaume Foundation established by Honesdale natives, John and Helen Villaume, was created to benefit charitable, religious, scientific, literary, and educational programs within Wayne County. Since its inception, the Foundation has made awards totaling over $2,425,000.00 with Wayne Bank managing the account in the Wealth Management and Trust Services Division of Wayne Bank. Additional information about the Foundation and grant applications may be obtained from: The John and Helen Villaume Foundation, c/o Wayne Bank Wealth Management and Trust Services Division, 717 Main Street, Honesdale, PA 18431, or by phone: 570-253-1571 or email: Trust@WayneBank.com
Wayne Bank Ranks in Top 100 Performing Banks in U.S. American Banker has conducted its rankings of the top-performing banks of 2023. Wayne Bank has been evaluated by American Banker on profitability, efficiency, capital adequacy, and asset quality based on a three-year average return. Jim Donnelly, President, and Chief Executive Officer of Wayne Bank is pleased to announce that Wayne Bank has ranked number eighty-four out of two hundred in the $2 billion to $10 billion asset size category. Financial industry professionals turn to American Banker, every day and throughout the day, to stay maximally informed — drilling down on complex issues, keeping up with breaking news, and downloading research and data. “We are honored to be recognized for our strong financial performance. For over 150 years, we have been committed to helping our employees, customers, and communities we serve achieve their financial goals,” stated Mr. Donnelly.
