Norwood Financial (NASDAQ:NWFL – Get Free Report) posted its quarterly earnings results on Wednesday. The financial services provider reported $0.86 earnings per share for the quarter, missing analysts’ consensus estimates of $0.87 by ($0.01), FiscalAI reports. Norwood Financial had a net margin of 18.68% and a return on equity of 13.33%. The business had revenue of $29.37 million during the quarter, compared to analysts’ expectations of $28.10 million.
Here are the key takeaways from Norwood Financial’s conference call:
- Norwood reported a record second quarter with net income of $26.8 million, up 41% year over year, while adjusted EPS and returns on assets/equity also improved meaningfully.
- Net interest margin expanded to 3.9%, up 47 basis points from a year ago, helped mainly by lower deposit costs and the benefits of the repositioned portfolio.
- The company said the Presence Bank integration is now complete, including core system conversion and brand rollout, and management expects the experience to support future acquisition efforts.
- Norwood said it has already earned back the tangible book value dilution from the Presence Bank acquisition two years ahead of estimates, which management framed as evidence of strong earnings power and disciplined M&A.
- Credit quality was pressured by a $22 million borrower bankruptcy, leading to a $700,000 net charge-off and higher provision expense, though management said the outcome is acceptable relative to exposure and the bankruptcy process remains ongoing.
Norwood Financial Price Performance
Shares of NWFL traded up $0.34 during trading hours on Friday, reaching $32.53. 5,756 shares of the company traded hands, compared to its average volume of 31,723. The stock has a market capitalization of $354.25 million, a PE ratio of 11.19 and a beta of 0.55. The stock has a fifty day simple moving average of $31.02 and a 200 day simple moving average of $30.17. Norwood Financial has a fifty-two week low of $23.70 and a fifty-two week high of $32.86. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 0.31.
Norwood Financial Announces Dividend
Analyst Upgrades and Downgrades
A number of research firms have commented on NWFL. Stephens reissued a “mixed” rating and issued a $35.00 target price (up from $34.00) on shares of Norwood Financial in a report on Thursday. Weiss Ratings upgraded shares of Norwood Financial from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, April 29th. Finally, Wall Street Zen lowered Norwood Financial from a “buy” rating to a “hold” rating in a report on Saturday, May 16th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $35.00.
Get Our Latest Stock Analysis on NWFL
Insiders Place Their Bets
In other news, CFO John Martin Mccaffery, Jr. bought 1,000 shares of the business’s stock in a transaction that occurred on Thursday, April 30th. The stock was purchased at an average price of $29.44 per share, with a total value of $29,440.00. Following the purchase, the chief financial officer owned 4,000 shares of the company’s stock, valued at $117,760. This trade represents a 33.33% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Over the last three months, insiders have bought 3,297 shares of company stock valued at $97,483. Insiders own 8.10% of the company’s stock.
Hedge Funds Weigh In On Norwood Financial
A number of institutional investors have recently modified their holdings of NWFL. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Norwood Financial by 18.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,909 shares of the financial services provider’s stock worth $119,000 after acquiring an additional 765 shares during the last quarter. Geode Capital Management LLC raised its holdings in Norwood Financial by 3.2% in the 2nd quarter. Geode Capital Management LLC now owns 201,858 shares of the financial services provider’s stock valued at $5,205,000 after acquiring an additional 6,238 shares during the last quarter. Marshall Wace LLP purchased a new position in shares of Norwood Financial during the 2nd quarter worth $648,000. Raymond James Financial Inc. lifted its stake in shares of Norwood Financial by 20.8% during the 2nd quarter. Raymond James Financial Inc. now owns 89,419 shares of the financial services provider’s stock worth $2,305,000 after purchasing an additional 15,408 shares during the period. Finally, Tower Research Capital LLC TRC boosted its holdings in shares of Norwood Financial by 293.6% during the second quarter. Tower Research Capital LLC TRC now owns 1,771 shares of the financial services provider’s stock worth $46,000 after purchasing an additional 1,321 shares during the last quarter. Institutional investors and hedge funds own 28.08% of the company’s stock.
Norwood Financial Company Profile
Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing and non-interest-bearing transaction accounts, and statement savings and money market accounts, as well as certificate of deposits. It also provides commercial loans comprising lines of credit, revolving credit, term loans, mortgages, secured lending products, and letter of credit facilities; municipal finance lending; construction loans for commercial construction projects and single-family residences; land loans; construction financing; consumer loans; mortgage lending to finance principal residences and second home dwellings; and indirect dealer financing of new and used automobiles, boats, and recreational vehicles.
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