Norwood Financial Corp (NWFL) Announces Q3 2023 Earnings
Q3 2023 earnings of $4,119,000, a decrease from $8,109,000 in Q3 2022
Net interest income for Q3 2023 was $15,224,000, a decrease from Q3 2022
Total assets as of September 30, 2023, were $2.179 billion
Earnings per share (fully diluted) for Q3 2023 were $0.51, a decrease from $1.00 in Q3 2022
On October 24, 2023, Norwood Financial Corp (NASDAQ:NWFL) announced its earnings for the third quarter of 2023. The company reported earnings of $4,119,000 for the three months ended September 30, 2023, a decrease of $3,990,000 from the $8,109,000 earned in the same period in 2022. The decrease in earnings was primarily due to a $3.1 million decrease in net interest income, an $882,000 increase in the provision for credit losses, and a $1.1 million increase in total other expenses.
Financial Performance
For the three months ended September 30, 2023, earnings per share (fully diluted) were $0.51, a decrease from the $1.00 earned in the same period in 2022. The annualized returns on average assets and average tangible equity for the three-month period ended September 30, 2023, were 0.76% and 11.22%, respectively, compared to 1.57% and 21.48% for the same period in 2022.
Net income for the nine months ended September 30, 2023, totaled $16,405,000, which is $5,688,000 lower than the same period of 2022. The decrease in net income includes a $4,390,000 decrease in net interest income, a $2.0 million decrease in total other income, and a $1.9 million increase in total other expenses.
Balance Sheet Highlights
As of September 30, 2023, total assets were $2.179 billion, loans receivable were $1.611 billion, total deposits were $1.747 billion, and stockholders equity was $164.7 million. Net interest income, on a fully taxable equivalent basis (fte), totaled $15,224,000, which represents a decrease of $3,145,000, compared to the three months ended September 30, 2022.
Commentary
Our results for the first nine months of 2023 reflect decreasing net interest spreads due to rising interest rates, which have impacted our cost of interest-bearing liabilities more than the increase in yield earned on interest-earning assets. We continue to compare favorably to peer banks who have also reported a reduction in their financial performance. We will continue to search out opportunities to maintain our position as a premier community bank, and to serve our local communities with their financial needs. We appreciate the opportunity to serve our expanded base of stockholders and customers. - James O. Donnelly, President and Chief Executive Officer of Norwood Financial Corp
Explore the complete 8-K earnings release (here) from Norwood Financial Corp for further details.
This article first appeared on GuruFocus.
