Norwood Financial Corp. · NASDAQ:NWFL
Norwood Financial — D.A. Davidson Conference (December 2022)
16 slides from Norwood Financial's conference presentation, Dec 7, 2022
Slide 1: Norwood Financial Corp Investor Presentation
Norwood Financial Corp Investor Presentation December 7, 2022 D.A. Davidson Conference
Slide 2: Forward Looking Statements & Disclaimers
Forward Looking Statements & Disclaimers 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 Act of 1995. The words “anti
Slide 3: Corporate Snapshot
Corporate Snapshot • Norwood Financial Corp (NWFL: Nasdaq Global Market) • Bank subsidiary is Wayne Bank opened in 1871 (operating for 151 years), headquartered in Wayne County, Pennsylvania • 29 branches across ten counties in Northeastern Pennsylvania, Upstate New York and the Southern Tier of New
Slide 4: Who We Are and What We Stand For
Who We Are and What We Stand For Our Mission Statement “Helping the community grow by serving businesses and their employees.” Our Core Values • We believe in lending money to the local businesses and residents within the communities we serve. • We believe in funding those loans with local deposits
Slide 5: A Leading Market Share in a Sizable, Quality Market
A Leading Market Share in a Sizable, Quality Market Quality Demographics • The Wayne Bank primary market of ten counties is home to 1.2 million people and is projected to grow by 2.69% between 2022 and 2027. • The average household income is projected to grow by 12% from 2022 to $96,553 in 2027. Div
Slide 6: Financial Highlights, Q3 2021 vs. Q3 2022
Financial Highlights, Q3 2021 vs. Q3 2022 YOY (dollars in thousands, except per share data) Q3 2021 * Q3 2022 * Change Balance Sheet and Capital Adequacy Total loans $1,371,002 $1,432,288 $61,286 Total assets 2,053,691 2,018,870 (34,821) Total deposits 1,722,522 1,768,796 46,274 Shareholders' equity
Slide 7: A Well Diversified Loan Portfolio
A Well Diversified Loan Portfolio Loan portfolio presented as of September 30, 2022 Loan Portfolio Categories Loan Portfolio by Industry Total loans of $1.433 billion % of total loans All others 58.28% 12% 2% Commercial rentals 10.23% 21% Residential rentals 7.82% Hotels/motels 4.58% 13% Mobile home
Slide 8: A Long-Term Focus on Credit Quality
A Long-Term Focus on Credit Quality NPAs/Assets • Allowance for loan losses as of 0.30% 0.24% September 30, 2022 of $16.9 0.20% 0.19% 0.19% million 0.12% 0.10% 0.05% • Non-performing assets 0.00% comprised of $618 thousand 2018 2019 2020 2021 2022 of non-accrual loans and $346 thousand of OREO NCOs/
Slide 9: A Favorable, Low Cost Deposit Mix
A Favorable, Low Cost Deposit Mix Cost of Interest Bearing Deposits Deposit Mix 1.00% 0.94% Total deposits of $1.8 billion as of September 30, 2022 0.90% 0.80% 11% 0.70% 0.68% 26% 0.63% 15% 0.60% 0.50% 0.47% 15% 0.40% 0.38% 16% 0.32% 0.32% 0.30% 17% 0.20% Non-interest bearing demand 0.10% Interest-b
Slide 10: Prudent Management of Liquidity
Prudent Management of Liquidity • $505 million in available for sale (AFS) securities ✓ No evidence of credit quality issues • No securities designated as held to maturity • Diligent management of the loan pipeline • $250 million in unfunded commitments under lines of credit and commitments to grant
Slide 11: Strong and Sustained Financial Performance
Strong and Sustained Financial Performance Net Interest Margin Efficiency Ratio 3.60% 3.55% 60.00% 58.88% 3.53% 3.53% 3.52% 3.50% 59.00% 58.20% 3.50% 57.70% 58.00% 3.40% 57.00% 56.00% 3.30% 55.00% 54.00% 3.20% 53.00% 52.01% 52.00% 51.52% 3.10% 51.00% 3.00% 50.00% 2018 2019 2020 2021 2022 2018 2019 2
Slide 12: Skilled and Thoughtful Acquiror
Skilled and Thoughtful Acquiror • $1 billion in total assets from three successful acquisitions in markets adjacent to the core geography • Acquisitions supplement organic growth 3 •1 North Penn Bancorp, Inc. 3 ✓ Closed May 31, 2011 ✓ $27 million deal (124% price/book) ✓ Acquired $166 million in tot
Slide 13: A Legacy of Creating Shareholder Value
A Legacy of Creating Shareholder Value • Total return of 1,171.5% between Cash Dividends per Share October 11, 1995 and November 22, $1.20 1.2 2022 50% stock • 27 consecutive years of increases in dividend in $1.00 2017 1 cash dividends per share ✓ Most recent quarterly dividend of $.28/share paid o
Slide 14: Our Strategies Connect Our Past to Our Future
Our Strategies Connect Our Past to Our Future Our Past Our Now Our Future •Focused on a limited •Improve customer •Frictionless processes number of local facing technology to to create personalized communities bank the next client experiences generation of clients •Personalized services •Services de
Slide 15: Investment Thesis and Concluding Thoughts
Investment Thesis and Concluding Thoughts • Top quartile financial performance relative to peers (and ranked by Bank Director as one of the Top 100 performing banks in the U.S.) • Earnings accretive acquisitions to add additional scale and human capital to the core franchise Dedicated and diverse Bo
Slide 16: Our Contact Information
Our Contact Information For more information regarding the Company: Norwood Financial Corp Investor Relations 717 Main Street Honesdale, Pennsylvania 18431 www.waynebank.com info@waynebank.com James O. Donnelly (“Jim”) William S. Lance (“Bill”) President & Executive Vice President & Chief Executive
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