Norwood Financial Corp. · NASDAQ:NWFL
Norwood Financial — FY2023 Earnings Presentation
45 slides from Norwood Financial's earnings presentation, Apr 23, 2024
Slide 1: Exhibit 99.1
Exhibit 99.1
Slide 2: Discussion: 2023 Results, First Quarter 2024, Looking Forward
2023 Results First Quarter 2024 Looking Forward DISCUSSION
Slide 3: Forward-looking statements
The foregoing material may contain forward-looking statements. We caution that such statements may be subject to a number of uncertainties and actual results could differ materially, and therefore, you should not place undue reliance on any forward-looking statements. Norwood Financial Corp does not
Slide 4: 2023 Summary
Slide 5: Loan and deposit yields and costs increased
Loan yield increased 73 basis points to 5.46% Yield on total interest-earning assets increased 78 basis points to 4.68% Total interest-bearing liabilities increased 169 basis points to 2.21% Including 147 basis point increase in cost of deposits Cost of certificates of deposit increased 228 basis po
Slide 6: Yield on loans and cost of deposits versus peers
NWFL yield on loans increased 73 basis points National Peer Banks yield on loans increased 99 basis points NWFL yield cost of deposits increased 147 basis points National Peer Banks cost of deposits increased 158 basis points
Slide 7: Earnings Growth
EARNINGS GROWTH Cin millions) $29.233 I 1 cece 2019 2020 2021 2022 2023
Slide 8: Earnings Per Share
EARNINGS PER SHARE 2019 2020 2021 2022 2023
Slide 9: Performance Ratios: Return on Assets
PERFORMANCE RATIOS RETURN ON ASSETS 2019 2020 £2021 2022 2023
Slide 10: Performance Ratios: Return on Equity
PERFORMANCE RATIOS RETURN ON EQUITY 2021 2022
Slide 11: Dividends Per Share
DIVIDENDS PER SHARE 2020 2021 2022 2023
Slide 12: Cash Dividends Payout Ratio
CASH DIVIDENDS PAYOUT RATIO 100% _ 75% — 50% —/ 35% NATIONAL PA PEER PEERBANKS BANKS
Slide 13: Total Assets
TOTAL ASSETS Cin billions) $2.069 $2.047 2019 2020 2021 2022 20,
Slide 14: Total assets, loans and deposits changes
Total Assets Increased $154 million to $2.2 billion Total Loans Increased $130 million in 2023 $85 million Increase in Retail Loans $45 million Increase in Commercial Loans Deposits Increased $67 million $205 million increase in time deposits $140 million decrease in non-maturing deposits
Slide 15: Credit Quality
CREDIT QUALITY
Slide 16: Coverage Ratio
COVERAGE RATIO 249% IN 2023
Slide 17: Non-Performing Assets
NON-PERFORMING ASSETS PENNSYLVANIA PEER BANKS 0.47%
Slide 18: Yield on interest earning assets and cost of liabilities
Yield on interest earning assets increased 78 basis points to 4.68% Cost of total interest bearing liabilities increased 169 basis points to 2.21%
Slide 19: Net Interest Margin
NET INTEREST MARGIN ee 2019 2020 2021 2022
Slide 20: Net Interest Margin Comparison
NET INTEREST MARGIN COMPARISON 3.50% ~ 3.40% + SAS 3.30% NATIONAL PA PEER PEER BANKS BANKS
Slide 21: Operating Expenses
OPERATING EXPENSES $45.000 - $42.000 4 $39.000 4 $36.000 _/) 1 + | = 2022 2023 $33.000 _/ $30.000 _/j $27.000 _) $24.000 2019 2020 2021
Slide 22: Effective Spending
EFFECTIVE SPENDING NATIONAL PAPEER PEERBANKS BANKS
Slide 23: Capital at Year End
CAPITAL AT YEAR END Cin millions) $217.5 $211 $220.0 - $200.0 - $180.0 + $160.0 + $191.5 ee — ] yi | EI | i A =a _! = | | | Saal | 2019 2020 2021 2022 2023
Slide 24: Share repurchase program
In 2021, Program Announced to Buy Back up to 5% of Outstanding Shares In 2023, Over 108,000 Shares of Stock were Repurchased.
Slide 25: 2023 accomplishments
Grew Loans By 8.8%, Exceeding State Average of 7.1% Maintained Healthy Allowance for Credit Losses Maintained Capital Levels in Excess of Regulatory Requirements Received Recognition by Bank Director Magazine in their Best U.S. Banks Rankings Increased Cash Dividend by 3.5% in Q4, 32 Consecutive Yea
Slide 26: Optimism: Future Opportunities
OPTIMISM: FUTURE OPPORTUNITIES &
Slide 27: Looking Forward
LOOKING FORWARD
Slide 28: First quarter 2024 earnings and ratios
Earnings of $4,433,000 EPS of $0.55 ROA = 0.80% ROAE = 9.79%
Slide 29: First quarter total assets, loans, deposits, equity
Total Assets of $2.3 billion Total Loans of $1.6 billion Total Deposits of $1.8 billion Stockholder’s Equity of $181.2 million
Slide 30: Net interest income, spread, other income, expenses
Net Interest Income: $14.9 million Net Interest Spread: 2.07% Other Income: $2.0 million Operating Expenses: $11.7 million
Slide 31: Annual loan and deposit growth
4.5% Annual Loan Increase 9.8% Annual Deposit Increase Well-Controlled Operating Expenses Well-Capitalized
Slide 32: Rate hikes and economic uncertainty
COVID Spending Concluded 11 Fed Rate Hikes From March 2022 – July 2023 Pandemic, High-Inflation, Economic Uncertainty Wayne Bank Remains Strong & Resilient
Slide 33: Ranked Top Best U.S. Banks
RANKED TOP 25 BEST U.S. BANKS
Slide 34: Russell 2000 Index
RUSSELL 2000(R) INDEX RUSSELL 2000® INDEX < \icnwood? mr
Slide 35: Top Performing U.S. Bank
TOP 100 PERFORMING U.S. BANK AMERICAN BANKER
Slide 36: Corporate Office Renovation
CORPORATE OFFICE RENOVATION
Slide 37: New Community Office in Forty Fort
NEW COMMUNITY OFFICE IN FORTY FORT ra] | ni | i , } if re at ET ay
Slide 38: Focus on Technology
FOCUS ON TECHNOLOGY $Wayne Bank ONLINE ACCOUNT
Slide 39: Fraud Prevention, Education & Awareness
FRAUD PREVENTION, EDUCATION, & AWARNESS BANKSNEVER =» BANCOS NUNCA ASKTHAT PIDEN ESO
Slide 40: Lights, Camera, Save! Teen Video Contest
LIGHTS, CAMERA, SAVE! TEEN VIDEO CONTEST
Slide 41: Commercial and retail loans originated
Over $162 million Commercial Loans Over 1,000 Retail Loans for Over $69 million
Slide 42: Business Development in Pennsylvania
BUSINESS DEVELOPMENT IN PENNSYLVANIA NORTHEASTERN \ PENNSYLVANIA 7 (QERA © s ‘ “@ WISE Frases
Slide 43: Business Development in New York
BUSINESS DEVELOPMENT IN NEW YORK 5 OPPO! Linked Deposit Program SS
Slide 44: Strategic priorities
Build Lasting Relationships with Customers Help Local Businesses Grow and Thrive Reinvest in Communities we Serve Expand into New Markets Reward Shareholders
Slide 45: Thank You!