Norwood Financial Corp reported a net loss of $160,000 for the fiscal year ending December 31, 2024, a significant decline from the net income of $16.8 million recorded in 2023. This resulted in a loss per share of $0.02, compared to earnings of $2.08 per share in the previous year. The company's total assets increased to $2.317 billion, up from $2.201 billion in 2023, primarily driven by a $110.2 million rise in loans receivable, which reached $1.714 billion. The increase in loans was attributed to growth in consumer and commercial real estate loans.
The company's financial performance was notably impacted by a substantial increase in net realized losses on securities, which totaled $19.96 million in 2024, compared to a mere $209,000 in 2023. This loss was primarily due to the repositioning of the securities portfolio, which was undertaken to enhance profitability and liquidity. Additionally, total other income for the year resulted in a loss of $11.15 million, a stark contrast to the income of $8.12 million reported in the prior year. The increase in other expenses to $48.63 million, up from $43.50 million in 2023, further contributed to the overall loss.
Operationally, Norwood Financial Corp maintained a strong presence in its market, with total deposits increasing to $1.859 billion, a rise of $64 million from the previous year. The bank's customer base remains robust, with 264 full-time employees as of December 31, 2024. The company also completed a public offering of 1.15 million shares at $26.00 per share in December 2024, generating approximately $28 million in net proceeds, which will be utilized to support future growth and strengthen its capital position.
Looking ahead, Norwood Financial Corp anticipates challenges due to fluctuating interest rates and economic conditions that may impact loan demand and credit quality. The company has expressed confidence in its ability to navigate these challenges, supported by its strong capital ratios, which include a Tier 1 capital ratio of 12.35% and a total risk-based capital ratio of 13.45% as of December 31, 2024. Management remains focused on enhancing operational efficiency and profitability while continuing to serve its community banking customers effectively.
About NORWOOD FINANCIAL CORP
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