Norwood Financial Corp. · NASDAQ:NWFL
Norwood Financial — Shareholder Meeting (April 2023)
42 slides from Norwood Financial's shareholder meeting presentation, Apr 25, 2023
Slide 1: Annual Stockholders' Meeting April 25, 2023
ANNUAL STOCKHOLDERS’ MEETING APRIL 25, 2023
Slide 2: Discussion: 2022 Results, First Quarter 2023, Moving Forward
DISCUSSION 2022 Results First Quarter 2023 Moving Forward
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: Summary
summry
Slide 5: Loan Portfolio Growth and Rising Rate Effects
â–ª Loan Portfolio Growth of $119 million â–ª Redeployment of Low-Earning Overnight Liquidity into Higher Earning Loans â–ª Positive Effects of Rising Interest Rates
Slide 6: Earnings Growth
EARNINGS GROWTH Cin millions) 2018 2019 2020 2021 2022
Slide 7: Earnings Per Share
EARNINGS PER SHARE 2018 2019 2020 2021 2022
Slide 8: Performance Ratios: Return on Assets
PERFORMANCE RATIOS RETURN ON ASSETS 1.50% 1.40% 1.30% 1.20% 1.10% 1.00% 0.80% 2018 2019 2020 2021 2022
Slide 9: Performance Ratios: Return on Equity
PERFORMANCE RATIOS RETURN ON EQUITY
Slide 10: Dividends Per Share
DIVIDENDS PER SHARE 2018 2019 2020 2021 2022
Slide 11: Cash Dividends Payout Ratio
CASH DIVIDENDS PAYOUT RATIO NWFL NATIONAL PA PEER PEERBANKS BANKS
Slide 12: Total Assets
TOTAL ASSETS Cin billions) $2.300 $2.100 $1.900 $1.700 $1.500 $1.300 $1100 $.900 $.700 2018 2019 2020 2021 2022
Slide 13: Total Assets, Loans and Deposits Changes
▪ Total Assets Decreased $21 million to $2.0 billion  Economic Stimulus Fund Runoff PPP Loans Paid Off ▪ Total Loan Increased $119 million in 2022  $90 million Increase in Retail Loans $29 million Increase in Commercial Loans ▪ Deposits Decreased $29 million  Economic Stimulus
Slide 14: Non-Performing Assets
NON-PERFORMING ASSETS NATIONAL PEER BANKS 0.07% 0.20%
Slide 15: Allowance for Loan Losses
ALLOWANCE FOR LOAN LOSSES in millions) $16.999 2018 2019 2020 8 2021 2022
Slide 16: Coverage Ratio
COVERAGE RATIO 1,527% IN 2022
Slide 17: Yield on Assets and Cost of Liabilities
â–ª Yield on Interest-Earning Assets Increased 9 Basis Points to 3.90% â–ª Cost of Interest-Bearing Liabilities Increased 10 Basis Points to 0.52%
Slide 18: Net Interest Margin
NET INTEREST MARGIN 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 2018 2019 2020 2021 2022
Slide 19: Net Interest Margin Comparison
NET INTEREST MARGIN COMPARISON
Slide 20: Operating Expenses
OPERATING EXPENSES Cin millions) $42.000 $39.000 $36.000 $33.000 $30.000 $27.000 $24.000 $21.000 2019 2020
Slide 21: Efficiency Ratio
EFFICIENCY RATIO zi Sxe see EE SESEESE 2020 2021 2022 2019 2018
Slide 22: Effective Spending
EFFECTIVE SPENDING $1.00 / $0.90 {| $0.80 / $0.70 //| $0.60 / $0.50 $0.40 // $0.30 // $0.20 |/ $0.10 /| $0.00 | $0.59 NWFL NATIONAL PEER BANKS
Slide 23: Capital at Year End
CAPITAL AT YEAR END Cin millions) 2018 2019 2020 2021 2022
Slide 24: Share Repurchase Program
SHARE REPURCHASE PROGRAM â–ª In 2021, Program Announced to Buy Back up to 5% of Outstanding Shares â–ª In 2022, Over 94,000 Shares of Stock were Repurchased.
Slide 25: Recap 2022
â–ª RECAP 2022 Record Earnings â–ª ROA = 1.43% â–ª ROE = 16.11% â–ª Grew Loans By 8.8% â–ª Increased Cash Dividend by 3.6% in Q4 â–ª Maintained Strong Credit Quality Metrics â–ª Managed Most Significant Increase in Interest Rates by Fed in Over 40 Years
Slide 26: Optimism: Future Opportunities
OPTIMISMS FUTURE UPPORTUNITIES
Slide 27: Looking Forward
LOOKING FORWARD
Slide 28: First Quarter Earnings, EPS, ROA and ROAE
â–ª Earnings of $5,782,000 â–ª EPS of $0.71 â–ª ROA = 1.13% â–ª ROAE = 13.61%
Slide 29: Total Assets, Loans, Deposits and Equity
â–ª Total Assets of $2.104 billion â–ª Total Loans of $1.536 billion â–ª Total Deposits of $1.756 billion â–ª Stockholder’s Equity of $176.4 million
Slide 30: Net Interest Income, Other Income and Operating Expenses
Net Interest Income: $16.1 million Net Interest Spread: 2.83% Other Income: $1.9 million Operating Expenses: $10.4 million
Slide 31: Annual Loan and Deposit Increase
â–ª 16.7% Annual Loan Increase â–ª 6.6% Annual Deposit Increase â–ª Well-Capitalized
Slide 32: Positive Change and Progress
POSITIVE CHANGE AND PROGRESS
Slide 33: Penn Yan Community Office Expansion & Relocation
PENN YAN COMMUNITY OFFICE EXPANSION & RELOCATION
Slide 34: Ranked One of the Top Performing Banks in the Country
RANKED ONE OF THE TOP 100 PERFORMING BANKS IN THE COUNTRY Profitability Capital Adequacy Asset Quality Shareholder Return
Slide 35: Focus on Technology: Debit Card Mobile Access
FOCUS ON TECHNOLOGY Easily Access Your Debit Card 24/7 From Your Mobile Device Instant Alerts, Turn Card Off if Lost or Stolen, and Create Travel Plan Notifications Used by Over 5,000 Customers
Slide 36: Focus on Technology: Mobile Banking Users
FOCUS ON TECHNOLOGY Over 46,000 Mobile Banking Users Over 7,500 Mobile Deposit Capture Users
Slide 37: Fraud Prevention, Education, & Awareness
FRAUD PREVENTION, EDUCATION, & AWARNESS
Slide 38: Helping the Community Grow
HELPING THE COMMUNITY GROW â– 1,237 Retail Loans just under $100 million
Slide 39: Business Development in Pennsylvania
BUSINESS DEVELOPMENT IN PENNSYLVANIA
Slide 40: Business Development in New York
BUSINESS DEVELOPMENT IN NEW YORK
Slide 41: Our Mission
OUR MISSION Build Lasting Relationships with Customers Help Local Businesses Grow and Thrive Reinvest in Communities we Serve Expand into New Markets Reward Shareholders
Slide 42: Thank you
Thank you