Norwood Financial Corp. · NASDAQ:NWFL
Norwood Financial — Shareholder Meeting (April 2024)
31 slides from Norwood Financial's shareholder meeting presentation, Apr 23, 2024
Slide 1: Annual Shareholders' Meeting April 23, 2024
Slide 2: 2023 Results, First Quarter 2024, Looking Forward
▪ 2023 Results ▪ First Quarter 2024 ▪ Looking 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
we 23. SUMMARY —— )\Jjorwood? ————
Slide 5: Yields and cost of funds increases
▪ 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 22
Slide 6: Loan yield and deposit cost vs peer banks
▪ 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: Net Income / Earnings Growth
Net Income qe) | val yD A ae EARNINGS GROWTH Cin millions) 0 8 ee mv ales eet 2022 2023 2019
Slide 8: Earnings Per Share
EARNINGS PER SHARE $3.58 7 PW Joss ah be | ' Perr TT \ clar wAt N N | 2019 | - im 3 geeaaad 8 N | °o =a Li} 1 \ \ } uo N (=) N i)
Slide 9: Performance Ratios: Return on Assets
PERFORMANCE RATIOS RETURN ON ASSETS 2019 2020 2021 £2022 #&«232023
Slide 10: Performance Ratios: Return on Equity
PERFORMANCE RATIOS RETURN ON EQUITY 2019 2020 2021 2022 202
Slide 11: Dividends Per Share
DIVIDENDS PER SHARE I ba od od Cy te _— _— —* >= -—— = — = _— MIN 2019 2020 2021 £2022
Slide 12: Cash Dividends Payout Ratio
CASH DIVIDENDS PAYOUT RATIO 100% _ 75% — NATIONAL PA PEER PEER BANKS BANKS
Slide 13: Total Assets
TOTAL ASSETS Cin billions) $2.201 $2.047 2019 2020 2021 2022 20
Slide 14: Assets, loans and deposits growth
▪ Total Assets Increased $154 million to $2.2 billion ▪ Total Loan 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 deposi
Slide 15: Total Assets
TOTAL ASSETS Cin billions) $2.201 $2.047 2019 2020 2021 2022 20
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 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
4.00% 3.50% 7? 3.00% 2.50% 2.00% NET INTEREST MARGIN 2019 2020 2021 2022
Slide 20: Net Interest Margin Comparison
NET INTEREST MARGIN COMPARISON 3.50% 3.40% NWFL NATIONAL PA PEER PEER BANKS BANKS
Slide 21: Operating Expenses
OPERATING EXPENSES $45.000 - $42.000 - $39.000 $36.000 $33.000 $30.000 _ $27.000 _| $24.000 2019 2020 2021 2022 2023 a.
Slide 22: Effective Spending
EFFECTIVE SPENDING ne Oe amas | mili 4 NATIONAL PAPEER PEERBANKS BANKS
Slide 23: Capital at Year End
CAPITAL AT YEAR END Cin millions) $211.1 | a a | _t 4a ~ 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 highlights
▪ 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 Conse
Slide 26: Optimism: Future Opportunities
OPTIMISMS FUTURE OPPORTUNITIES &
Slide 27: Looking Forward
LOOKING FORWARD
Slide 28: First quarter 2024 earnings
▪ Earnings of $4,433,000 ▪ EPS of $0.55 ▪ ROA = 0.80% ▪ ROAE = 9.79%
Slide 29: First quarter 2024 balance sheet
▪ Total Assets of $2.260 billion ▪ Total Loans of $1.621 billion ▪ Total Deposits of $1.839 billion ▪ Stockholder’s Equity of $181.2 million
Slide 30: First quarter 2024 income
▪ Net Interest Income: $14.9 million ▪ Net Interest Spread: 2.07% ▪ Other Income: $2.0 million ▪ Operating Expenses: $11.7 million
Slide 31: Annual growth and outlook summary
▪ 4.5% Annual Loan Increase ▪ 9.8% Annual Deposit Increase ▪ Well-Controlled Operating Expenses ▪ Well-Capitalized