Norwood Financial Corp reported its financial results for the three and nine months ended September 30, 2024, highlighting several key performance metrics and strategic developments.

As of September 30, 2024, total assets increased to $2.280 billion from $2.201 billion at the end of 2023. Total deposits rose to $1.855 billion, up from $1.795 billion, primarily driven by a $38.9 million increase in interest-bearing demand deposits and a $33.4 million rise in certificates of deposit. Cash and cash equivalents also saw a significant increase, reaching $82.9 million compared to $66.1 million at the end of 2023.

Interest income for the three months ended September 30, 2024, was $28.7 million, an increase from $24.7 million in the same period of 2023. However, total interest expense rose sharply to $12.6 million from $9.5 million, leading to net interest income of $15.9 million, slightly up from $15.0 million year-over-year. For the nine-month period, net interest income decreased to $45.6 million from $46.8 million in 2023, attributed to rising interest expenses which totaled $37.5 million, compared to $22.7 million in the prior year.

Net income for the three months ended September 30, 2024, was $3.8 million, down from $4.1 million in 2023, with earnings per share decreasing to $0.48 from $0.51. For the nine-month period, net income fell to $12.5 million from $16.4 million, reflecting a decrease in net interest income and an increase in operating expenses, which rose by $2.6 million to $35.2 million.

The company reported a provision for credit losses of $1.3 million for the third quarter, up from $882,000 in the same quarter of 2023. The allowance for credit losses as of September 30, 2024, was $18.7 million, representing 1.12% of total loans, a slight decrease from 1.18% at the end of 2023.

In terms of strategic developments, Norwood Financial Corp did not report any significant acquisitions or layoffs during this period. The company continues to focus on managing interest rate risk, which is identified as a significant market risk affecting net income. The Asset and Liability Committee regularly evaluates the impact of interest rates on net interest margin, capital, and liquidity.

Overall, while the company experienced growth in assets and deposits, profitability metrics showed a decline compared to the previous fiscal period, primarily due to increased interest expenses and operating costs.