Norwood Financial Corp. · NASDAQ:NWFL
Norwood Financial — Investor Presentation (January 2025)
21 slides from Norwood Financial's investor presentation, January 2025
Slide 1: Investor Presentation
Investor Presentation January 2025 | 1
Slide 2: Forward-Looking Statements & Disclaimers
Forward-Looking Statements & Disclaimers Forward-Looking Statements The information disclosed in this document includes various forward-looking statements that are made by Norwood Financial Corp (the “Company”) in reliance upon the safe harbor provisions of the Private Securities Litigation Reform A
Slide 3: Franchise Overview | Norwood Financial Corp.
Franchise Overview | Norwood Financial Corp. Branch Footprint Franchise Highlights Cooperstown NASDAQ: NWFL Oneonta $2.3B Headquarters: Honesdale, PA Total Assets NWFL (29) Founded: 1871 Honesdale Employees: 264 $1.7B Scranton Milford Total Gross Loans Dividend Yield: 4.0% Stroudsburg Geneva NY 29 2
Slide 4: Strength. Security. Stability.
Strength. Security. Stability. Key Tenets for Success Customers Employees Community Shareholders • Operates under three brands: Wayne Bank, the Bank of Cooperstown and Bank of the Finger Lakes 150 Years in Business • Committed to the same community banking mission and core values instated upon our f
Slide 5: Historical Growth and Expansion
Historical Growth and Expansion A History of De Novo Growth and Successful Acquisitions 2024: Renovating new location in Forty Fort, PA scheduled to open in Acquired Branches Q1 2025 2020: Acquired USNY and Bank NY of Cooperstown and Bank of Finger Lakes brands PA 2016: Acquired National Bank of Del
Slide 6: Loan Portfolio Overview
Loan Portfolio Overview Small Business Lending, Granular Relationships and Limited Industry Concentration LOAN PORTFOLIO BY CATEGORY Historical Asset Yields 1-4 Family, 15% C&I, 15% 6.16% 6.18% 5.90% 5.98% 5.84% Const & Land, 3% 5.52% 5.33% 5.31% 5.35% Consumer, 1% 5.17% 5.11% 5.08% 4.92% 5.01% Tota
Slide 7: Strong Historical Credit Quality
Strong Historical Credit Quality Recent Loan Growth Has Not Compromised Our Disciplined Credit Culture For the Calendar Year Ended 2018Y 2020Y 2021Y 2022Y 2023Y 2024Y Credit Quality Ratios (%) Non-Performing Loans/Loans 0.09 0.24 0.05 0.08 0.48 0.46 Net Charge Offs/Loans 0.13 0.07 0.07 0.02 0.39 0.1
Slide 8: Deposit Portfolio Overview
Deposit Portfolio Overview Attractive Retail Franchise Bolstered by Commercial and Municipal Relationships Deposit Portfolio by Category Historical Funding Costs NIB Demand 2.43% 2.50% 2.49% 2.46% 21% 2.18% Time Deposits 1.94% 41% 2.34% 2.32% 2.30% 2.25% 1.58% 2.01% 1.19% 1.64% Total 1.32% $1.9B IB
Slide 9: Key Performance Indicators – Through September 30, 2024
Key Performance Indicators – Through September 30, 2024 Earnings Commentary Return on Average Assets Return on Average Tangible Common Equity¹ PPNR ROAA¹ • Net income for Q3 2024 was ROAA $3.8M and for the first nine months of the year was $12.5M • Net interest income for Q3 2024 was $15.9M and for
Slide 10: Securities Repositioning
Securities Repositioning Investment Portfolio at 11/30/2024 Investment Portfolio at 12/31/2024 Treasury Agency (Fixed) SBA Treasury Agency SBA (Fixed) 7% 6% (Fixed) 5% (Fixed) 0% CMBS 0% 3% (Fixed) Municipal - CMBS (Fixed) Municipal 10% Taxable 2% - Taxable 18% 14% 2.25% 3.42% Yield Municipal Yield
Slide 11: Interest Rate Sensitivity
Interest Rate Sensitivity Net Interest Income Sensitivity 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% Q3 Q4 -10.0% -300 -200 -100 0 +100 +200 +300 Note: Impact to net interest income as of September 30, 2024 | 11
Slide 12: Investment Proposition
Investment Proposition Strong local ties providing consistent and sound growth opportunities Granular loan and deposit portfolio tied to our community Attractive financial profile enhanced by the proposed offering and repositioning Disciplined underwriting culture Experienced Executive Team, aligned
Slide 13: Appendix
Appendix Nena CORP
Slide 14: Today's Presenters
Today’s Presenters Jim Donnelly, President, Chief Executive Officer, and Director Mr. Donnelly became President, Chief Executive Officer, and Director of the Company in 2022. Mr. Donnelly joined the Company with over 30 years of banking experience, most recently with Bangor Savings Bank where he ser
Slide 15: Historical Financial Highlights
Historical Financial Highlights For the Calendar Year Ended For the Calendar Quarter Ended Balance Sheet ($M) 2020Y 2021Y 2022Y 2023Y 2023Q4 2024Q1 2024Q2 2024Q3 Total Assets $1,852 $2,069 $2,047 $2,201 $2,201 $2,260 $2,235 $2,280 Gross Loans HFI 1,411 1,355 1,474 1,604 1,604 1,621 1,641 1,675 Depos
Slide 16: Historical Balance Sheet
Historical Balance Sheet ($ in Thousands) As of December 31, As of September, 2022 2023 2024 Cash and Cash Equivalents $31,866 $66,120 $82,880 Securities Available for Sale, at Fair Value 418,927 406,259 396,891 Loans Receivable, Net of Allowance for Credit Losses 1,456,946 1,584,650 1,656,440 Bank
Slide 17: Historical Income Statement
Historical Income Statement For the Nine ($ in Thousands, Except Per Share Data) As of December 31, Months Ended 2022 2023 September 30, 2024 Interest and Fees on Loans $66,013 $85,209 $73,266 Interest and Dividends on Securities, Taxable 7,262 8,389 6,514 Interest on Securities, Tax-Exempt 1,789 1,
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-GAAP Reconciliation Illustrated for Capital Offering + Securities Repositioning (Dollars in Thousands) For the Calendar Year Ended Consolidated TCE / TA 2020 2021 2022 2023 2024 YTD Stockholders' Equity $194,785 $205,262 $167,085 $181,070 $195,654 Less: Intangible Assets
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations (Dollars in Thousands) For the Calendar Quarter Ended Potential Pro-Forma Consolidated TCE / TA 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Adjustments¹ 9/30/2024 Stockholders' Equity $167,085 $176,415 $173,424 $164,702 $181,070 $181,213
Slide 20: Non-GAAP Reconciliations (Continued)
Non-GAAP Reconciliations (Continued) Non-GAAP Reconciliation Illustrated for Capital Offering + Securities Repositioning (Dollars in Thousands) For the Calendar Year Ended Consolidated PPNR ROAA 2020 2021 2022 2023 2024 YTD Total Net interest Income $50,476 $65,313 $68,397 $62,067 $45,566 Add: Total
Slide 21: Thank You
Thank You Nena CORP
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