[x]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Norwood Financial Corp.
|
(Exact name of Registrant as specified in its charter)
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Pennsylvania
|
23-2828306
|
|
(State or other jurisdiction of
Incorporation or organization)
|
(I.R.S. employer identification no.)
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717 Main Street, Honesdale, Pennsylvania
|
18431
|
||
(Address of principal executive offices)
|
(Zip Code)
|
(570) 253-1455
|
(Registrant’s telephone number, including area code)
|
NA
|
(Former name, former address and former fiscal year, if changed since last report)
|
Large accelerated filer o
|
Accelerated filer x
|
Non-accelerated filer o
|
Smaller reporting company o
|
(Do not check if a smaller reporting company)
|
Class
|
Outstanding as of May 1, 2013
|
||
Common stock, par value $0.10 per share
|
3,620,551 |
Page
Number
|
||
PART I -
|
CONSOLIDATED FINANCIAL INFORMATION OF NORWOOD
FINANCIAL CORP.
|
|
Item 1.
|
Financial Statements
|
3
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
27
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
37
|
Item 4.
|
Controls and Procedures
|
38
|
PART II -
|
OTHER INFORMATION
|
|
Item 1.
|
Legal Proceedings
|
39
|
Item 1A.
|
Risk Factors
|
39
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
39
|
Item 3.
|
Defaults upon Senior Securities
|
39
|
Item 4.
|
Mine Safety Disclosures
|
39
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Item 5.
|
Other Information
|
39
|
Item 6.
|
Exhibits
|
39
|
Signatures
|
41
|
March 31,
2013
|
December 31,
2012
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 6,763 | $ | 10,867 | ||||
Interest bearing deposits with banks
|
9,182 | 1,428 | ||||||
Cash and cash equivalents
|
15,945 | 12,295 | ||||||
Securities available for sale, at fair value
|
148,598 | 145,390 | ||||||
Securities held to maturity, fair value 2013: $175, 2012: $177
|
173 | 173 | ||||||
Loans receivable (net of unearned income)
|
478,663 | 476,710 | ||||||
Less: Allowance for loan losses
|
5,726 | 5,502 | ||||||
Net loans receivable
|
472,937 | 471,208 | ||||||
Regulatory stock, at cost
|
2,533 | 2,630 | ||||||
Bank premises and equipment, net
|
7,191 | 7,326 | ||||||
Bank owned life insurance
|
14,402 | 15,357 | ||||||
Accrued interest receivable
|
2,456 | 2,393 | ||||||
Foreclosed real estate owned
|
1,099 | 852 | ||||||
Goodwill
|
9,715 | 9,715 | ||||||
Other intangibles
|
610 | 647 | ||||||
Other assets
|
5,094 | 4,313 | ||||||
TOTAL ASSETS
|
$ | 680,753 | $ | 672,299 | ||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Non-interest bearing demand
|
$ | 84,357 | $ | 82,075 | ||||
Interest-bearing
|
451,275 | 442,350 | ||||||
Total deposits
|
535,632 | 524,425 | ||||||
Short-term borrowings
|
21,859 | 28,697 | ||||||
Other borrowings
|
25,343 | 22,487 | ||||||
Accrued interest payable
|
1,082 | 1,242 | ||||||
Other liabilities
|
3,917 | 3,027 | ||||||
TOTAL LIABILITIES
|
587,833 | 579,878 | ||||||
STOCKHOLDERS’ EQUITY
|
||||||||
Common stock, $.10 par value per share, authorized
10,000,000; shares issued 2013: 3,709,034 shares,
2012: 3,371,849 shares
|
371 | 337 | ||||||
Surplus
|
34,912 | 24,737 | ||||||
Retained earnings
|
57,847 | 66,742 | ||||||
Treasury stock at cost: 2013: 80,438 shares,
2012: 75,426 shares
|
(2,345 | ) | (2,192 | ) | ||||
Accumulated other comprehensive income
|
2,135 | 2,797 | ||||||
TOTAL STOCKHOLDERS’ EQUITY
|
92,920 | 92,421 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 680,753 | $ | 672,299 |
|
Three Months Ended
March 31,
|
|||||||
2013 | 2012 | |||||||
INTEREST INCOME
|
||||||||
Loans receivable, including fees
|
$ | 6,186 | $ | 6,373 | ||||
Securities
|
868 | 1,026 | ||||||
Other
|
3 | 4 | ||||||
Total interest income
|
7,057 | 7,403 | ||||||
INTEREST EXPENSE
|
||||||||
Deposits
|
754 | 961 | ||||||
Short-term borrowings
|
12 | 11 | ||||||
Other borrowings
|
190 | 244 | ||||||
Total interest expense
|
956 | 1,216 | ||||||
NET INTEREST INCOME
|
6,101 | 6,187 | ||||||
PROVISION FOR LOAN LOSSES
|
800 | 350 | ||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
5,301 | 5,837 | ||||||
OTHER INCOME
|
||||||||
Service charges and fees
|
592 | 554 | ||||||
Income from fiduciary activities
|
85 | 98 | ||||||
Net realized gains on sales of securities
|
138 | 402 | ||||||
Net gains on sale of loans
|
11 | 5 | ||||||
Earnings and proceeds on life insurance policies
|
925 | 132 | ||||||
Other
|
126 | 100 | ||||||
Total other income
|
1,877 | 1,291 | ||||||
OTHER EXPENSES
|
||||||||
Salaries and employee benefits
|
2,211 | 2,151 | ||||||
Occupancy, furniture & equipment, net
|
529 | 487 | ||||||
Data processing related
|
221 | 232 | ||||||
Taxes, other than income
|
174 | 152 | ||||||
Professional fees
|
187 | 227 | ||||||
Federal Deposit Insurance Corporation insurance assessment
|
111 | 99 | ||||||
Foreclosed real estate owned
|
191 | 122 | ||||||
Other
|
677 | 677 | ||||||
Total other expenses
|
4,301 | 4,147 | ||||||
INCOME BEFORE INCOME TAXES
|
2,877 | 2,981 | ||||||
INCOME TAX EXPENSE
|
569 | 795 | ||||||
NET INCOME
|
$ | 2,308 | $ | 2,186 | ||||
BASIC EARNINGS PER SHARE
|
$ | .64 | $ | .61 | ||||
DILUTED EARNINGS PER SHARE
|
$ | .63 | $ | .61 | ||||
Three Months Ended
March 31, 2013
|
Three Months Ended
March 31, 2012
|
|||||||
Net income
|
$ | 2,308 | $ | 2,186 | ||||
Other comprehensive loss:
|
||||||||
Investment securities available for sale:
|
||||||||
Unrealized holding (losses) gains
|
(864 | ) | 154 | |||||
Tax effect
|
293 | (48 | ) | |||||
Reclassification of gains recognized in net income
|
(138 | ) | (402 | ) | ||||
Tax effect
|
47 | 137 | ||||||
Other comprehensive loss
|
(662 | ) | (159 | ) | ||||
Comprehensive Income
|
$ | 1,646 | $ | 2,027 |
Common Stock
|
Retained
|
Treasury Stock
|
Accumulated
Other
Comprehensive
|
|||||||||||||||||||||||||||||
Shares
|
Amount
|
Surplus
|
Earnings
|
Shares
|
Amount
|
Income
|
Total
|
|||||||||||||||||||||||||
Balance December 31, 2012
|
3,371,849 | $ | 337 | $ | 24,737 | $ | 66,742 | 75,426 | $ | (2,192 | ) | $ | 2,797 | $ | 92,421 | |||||||||||||||||
Net Income
|
2,308 | 2,308 | ||||||||||||||||||||||||||||||
Other comprehensive loss
|
(662 | ) | (662 | ) | ||||||||||||||||||||||||||||
Cash dividends declared $.31 per share
|
(1,020 | ) | (1,020 | ) | ||||||||||||||||||||||||||||
Acquisition of treasury stock
|
10,712 | (319 | ) | (319 | ) | |||||||||||||||||||||||||||
10% stock dividend
|
337,185 | 34 | 10,149 | (10,183 | ) | - | ||||||||||||||||||||||||||
Compensation expense related to stock options
|
39 | 39 | ||||||||||||||||||||||||||||||
Stock options exercised
|
(24 | ) | (5,700 | ) | 166 | 142 | ||||||||||||||||||||||||||
Tax benefit on stock options
|
11 | 11 | ||||||||||||||||||||||||||||||
Balance, March 31, 2013
|
3,709,034 | $ | 371 | $ | 34,912 | $ | 57,847 | 80,438 | $ | (2,345 | ) | $ | 2,135 | $ | 92,920 |
Three Months Ended March 31, | ||||||||
|
2013
|
2012
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net Income
|
$ | 2,308 | $ | 2,186 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for loan losses
|
800 | 350 | ||||||
Depreciation
|
149 | 141 | ||||||
Amortization of intangible assets
|
37 | 40 | ||||||
Deferred income taxes
|
12 | 52 | ||||||
Net amortization of securities premiums and discounts
|
298 | 296 | ||||||
Net realized gain on sales of securities
|
(138 | ) | (402 | ) | ||||
Gain on life insurance policy
|
(770 | ) | - | |||||
Net increase in value of life insurance
|
(155 | ) | (132 | ) | ||||
Loss on sale of bank premises and equipment and foreclosed real estate
|
97 | 32 | ||||||
Net gain on sale of mortgage loans
|
(11 | ) | (5 | ) | ||||
Mortgage loans originated for sale
|
(1,101 | ) | (123 | ) | ||||
Proceeds from sale of mortgage loans originated for sale
|
1,112 | 128 | ||||||
Compensation expense related to stock options
|
39 | 33 | ||||||
Decrease in accrued interest receivable and other assets
|
(530 | ) | (495 | ) | ||||
Increase (decrease) in accrued interest payable and other liabilities
|
732 | (456 | ) | |||||
Net cash provided by operating activities
|
2,879 | 1,645 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Securities available for sale:
|
||||||||
Proceeds from sales
|
7,403 | 10,633 | ||||||
Proceeds from maturities and principal reductions on mortgage-backed securities
|
5,093 | 6,738 | ||||||
Purchases
|
(16,867 | ) | (13,804 | ) | ||||
Redemption of FHLB stock
|
97 | 180 | ||||||
Net increase in loans
|
(2,964 | ) | (21,692 | ) | ||||
Proceeds from life insurance policy
|
1,859 | - | ||||||
Purchase of bank premises and equipment
|
(14 | ) | (130 | ) | ||||
Proceeds from sale of bank premises and equipment and foreclosed real estate
|
127 | 2,071 | ||||||
Net cash used in investing activities
|
(5,266 | ) | (16,004 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Net increase in deposits
|
11,207 | 20,425 | ||||||
Net decrease in short-term borrowings
|
(6,838 | ) | (5,940 | ) | ||||
Repayments of other borrowings
|
(144 | ) | (45 | ) | ||||
Proceeds from other borrowings
|
3,000 | - | ||||||
Stock options exercised
|
142 | 39 | ||||||
Tax benefit of stock options exercised
|
11 | 2 | ||||||
Acquisition of treasury stock
|
(319 | ) | (320 | ) | ||||
Cash dividends paid
|
(1,022 | ) | (984 | ) | ||||
Net cash provided by financing activities
|
6,037 | 13,177 | ||||||
Increase (decrease) in cash and cash equivalents
|
3,650 | (1,182 | ) | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
12,295 | 21,423 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 15,945 | $ | 20,241 |
Three Months Ended March 31, | ||||||||
2013
|
2012
|
|||||||
Supplemental Disclosures of Cash Flow Information
|
||||||||
Cash payments for:
|
||||||||
Interest on deposits and borrowings
|
$ | 1,116 | $ | 1,204 | ||||
Income taxes paid, net of refunds
|
(3 | ) | 197 | |||||
Supplemental Schedule of Noncash Investing Activities
|
||||||||
Investment purchases
|
- | 1,934 | ||||||
Transfers of loans to foreclosed real estate and repossession of other assets
|
486 | 336 |
Three Months Ended | ||||||||
March 31, | ||||||||
|
2013
|
2012
|
||||||
Basic EPS weighted average shares outstanding
|
3,628 | 3,613 | ||||||
Dilutive effect of stock options
|
9 | 2 | ||||||
Diluted EPS weighted average shares outstanding
|
3,637 | 3,615 |
Options
|
Weighted Average Exercise Price
Per Share
|
Weighted Average Remaining Contractual Term
|
Aggregate Intrinsic Value ($000)
|
|||||||||
Outstanding at January 1, 2013
|
226,739
|
$
|
26.27
|
6.1 Yrs. |
$
|
256
|
||||||
Granted
|
1,100
|
27.55
|
9.7 Yrs. |
30
|
||||||||
Exercised
|
(6,270
|
) |
22.62
|
2.9 Yrs. |
-
|
|||||||
Forfeited
|
(5,583
|
) |
27.89
|
4.3 Yrs. |
-
|
|||||||
Outstanding at March 31, 2013
|
215,986
|
$
|
26.34
|
6.0 Yrs. |
$
|
347
|
||||||
Exercisable at March 31, 2013
|
184,636
|
$
|
26.22
|
5.3 Yrs. |
$
|
324
|
Unrealized gains on
available for sale
securities (a)
|
||||
Balance as of December 31, 2012
|
$ | 2,797 | ||
Other comprehensive loss before reclassification
|
(571 | ) | ||
Amount reclassified from accumulated other comprehensive income
|
(91 | ) | ||
Total other comprehensive loss
|
(662 | ) | ||
Balance as of March 31, 2013
|
$ | 2,135 |
Details about other comprehensive income
|
Amount Reclassified
From Accumulated
Other
Comprehensive
Income (a)
|
Affected Line Item in
the Statement Where
Net Income is
Presented
|
|||
Unrealized gains on available for sale securities
|
$ | 138 |
Net realized gains on sales of securities
|
||
(47 | ) |
Income tax expense
|
|||
$ | 91 |
Net of tax
|
(in thousands)
|
March 31,
|
|||||||
2013
|
2012
|
|||||||
Unfunded availability under loan commitments
|
$ | 22,836 | $ | 42,538 | ||||
Unfunded commitments under lines of credit
|
49,433 | 41,865 | ||||||
Standby letters of credit
|
6,128 | 11,557 | ||||||
$ | 78,397 | $ | 95,960 |
March 31, 2013
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Available for Sale:
|
||||||||||||||||
U.S. Government agencies
|
$ | 17,290 | $ | 34 | $ | (29 | ) | $ | 17,295 | |||||||
States and political subdivisions
|
56,125 | 2,384 | (182 | ) | 58,327 | |||||||||||
Corporate obligations
|
8,502 | 328 | - | 8,830 | ||||||||||||
Mortgage-backed securities-
government sponsored entities
|
63,151 | 878 | (196 | ) | 63,833 | |||||||||||
Equity securities-financial services
|
292 | 28 | (7 | ) | 313 | |||||||||||
$ | 145,360 | $ | 3,652 | $ | (414 | ) | $ | 148,598 | ||||||||
Held to Maturity:
|
||||||||||||||||
States and political subdivisions
|
$ | 173 | $ | 2 | $ | - | $ | 175 |
December 31, 2012
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Available for Sale:
|
||||||||||||||||
U.S. Government agencies
|
$ | 13,076 | $ | 36 | $ | (20 | ) | $ | 13,092 | |||||||
States and political subdivisions
|
55,864 | 2,995 | (73 | ) | 58,786 | |||||||||||
Corporate obligations
|
8,521 | 347 | - | 8,868 | ||||||||||||
Mortgage-backed securities-government
sponsored entities
|
63,397 | 1,041 | (113 | ) | 64,325 | |||||||||||
Equity securities-financial services
|
292 | 27 | - | 319 | ||||||||||||
$ | 141,150 | $ | 4,446 | $ | (206 | ) | $ | 145,390 | ||||||||
Held to Maturity:
|
||||||||||||||||
States and political subdivisions
|
$ | 173 | $ | 4 | $ | - | $ | 177 |
March 31, 2013
|
||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
|||||||||||||||||||
U.S. government agencies
|
$ | 9,070 | $ | (29 | ) | $ | - | $ | - | $ | 9,070 | $ | (29 | ) | ||||||||||
States and political subdivisions
|
8,814 | (182 | ) | - | - | 8,814 | (182 | ) | ||||||||||||||||
Mortgage-backed securities-government sponsored agencies
|
28,321 | (196 | ) | - | - | 28,321 | (196 | ) | ||||||||||||||||
Equity securities–financial services
|
178 | (7 | ) | - | - | 178 | (7 | ) | ||||||||||||||||
$ | 46,383 | $ | (414 | ) | $ | - | $ | - | $ | 46,383 | $ | (414 | ) |
December 31, 2012
|
||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
|||||||||||||||||||
U.S. government agencies
|
$ | 7,056 | $ | (20 | ) | $ | - | $ | - | $ | 7,056 | $ | (20 | ) | ||||||||||
States and political subdivisions
|
5,821 | (73 | ) | - | - | 5,821 | (73 | ) | ||||||||||||||||
Mortgage-backed securities-government sponsored agencies
|
17,199 | (113 | ) | - | - | 17,199 | (113 | ) | ||||||||||||||||
$ | 30,076 | $ | (206 | ) | $ | - | $ | - | $ | 30,076 | $ | (206 | ) |
Available for Sale | Held to Maturity | |||||||||||||||
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Due in one year or less
|
$ | 5,474 | $ | 5,542 | $ | - | $ | - | ||||||||
Due after one year through five years
|
14,147 | 14,433 | 173 | 175 | ||||||||||||
Due after five years through ten years
|
29,990 | 30,844 | - | - | ||||||||||||
Due after ten years
|
32,306 | 33,633 | - | - | ||||||||||||
Mortgage-backed securities-government sponsored agencies
|
63,151 | 63,833 | - | - | ||||||||||||
$ | 145,068 | $ | 148,285 | $ | 173 | $ | 175 |
Three Months
|
||||||||
Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Gross realized gains
|
$ | 156 | $ | 402 | ||||
Gross realized losses
|
(18 | ) | - | |||||
Net realized gain
|
$ | 138 | $ | 402 | ||||
Proceeds from sales of securities
|
$ | 7,403 | $ | 10,633 |
Types of loans
|
||||||||||||||||
(dollars in thousands) | ||||||||||||||||
March 31, 2013 | December 31, 2012 | |||||||||||||||
Real Estate-Residential
|
$ | 153,422 | 32.0 | % | $ | 150,043 | 31.4 | % | ||||||||
Commercial
|
270,654 | 56.5 | 274,484 | 57.5 | ||||||||||||
Construction
|
14,750 | 3.1 | 13,435 | 2.8 | ||||||||||||
Commercial, financial and agricultural
|
26,443 | 5.5 | 25,113 | 5.3 | ||||||||||||
Consumer loans to individuals
|
13,922 | 2.9 | 14,154 | 3.0 | ||||||||||||
Total loans
|
479,191 | 100.0 | % | 477,229 | 100.0 | % | ||||||||||
Deferred fees, net
|
(528 | ) | (519 | ) | ||||||||||||
Total loans receivable
|
478,663 | 476,710 | ||||||||||||||
Allowance for loan losses
|
(5,726 | ) | (5,502 | ) | ||||||||||||
Net loans receivable
|
$ | 472,937 | $ | 471,208 |
2013
|
2012
|
|||||||
Balance at beginning of period
|
$ | 76 | $ | 171 | ||||
Accretion
|
(23 | ) | (24 | ) | ||||
Reclassification and other
|
- | - | ||||||
Balance at end of period
|
$ | 53 | $ | 147 |
March 31, 2013
|
December 31, 2012
|
|||||||
Outstanding Balance
|
$ | 1,102 | $ | 1,145 | ||||
Carrying Amount
|
$ | 1,049 | $ | 1,069 |
Real Estate | ||||||||||||||||||||||||
Residential | Commercial | Construction | Commercial Loans |
Consumer Loans |
Total | |||||||||||||||||||
March 31, 2013
|
(In thousands) | |||||||||||||||||||||||
Individually evaluated for impairment
|
$ | - | $ | 10,035 | $ | - | $ | - | $ | - | $ | 10,035 | ||||||||||||
Loans acquired with deteriorated credit quality
|
253 | 796 | - | - | - | 1,049 | ||||||||||||||||||
Collectively evaluated for impairment
|
153,169 | 259,823 | 14,750 | 26,443 | 13,922 | 468,107 | ||||||||||||||||||
Total loans | $ | 153,422 | $ | 270,654 | $ | 14,750 | $ | 26,443 | $ | 13,922 | $ | 479,191 |
Real Estate | ||||||||||||||||||||||||
Residential | Commercial | Construction | Commercial Loans |
Consumer Loans |
Total | |||||||||||||||||||
December 31, 2012
|
(In thousands) | |||||||||||||||||||||||
Individually evaluated for impairment
|
$ | - | $ | 10,246 | $ | - | $ | 310 | $ | - | $ | 10,556 | ||||||||||||
Loans acquired with deteriorated credit quality
|
270 | 799 | - | - | - | 1,069 | ||||||||||||||||||
Collectively evaluated for impairment
|
149,773 | 263,439 | 13,435 | 24,803 | 14,154 | 465,604 | ||||||||||||||||||
Total Loans
|
$ | 150,043 | $ | 274,484 | $ | 13,435 | $ | 25,113 | $ | 14,154 | $ | 477,229 |
Recorded
Investment
|
Unpaid
Principal
Balance
|
Associated
Allowance
|
||||||||||
March 31, 2013
With no related allowance recorded:
|
(In thousands) | |||||||||||
Real Estate Loans
|
||||||||||||
Residential
|
$ | 253 | $ | 265 | $ | - | ||||||
Commercial
|
10,831 | 10,872 | - | |||||||||
Subtotal
|
11,084 | 11,137 | - | |||||||||
With an allowance recorded:
|
||||||||||||
Subtotal
|
- | - | - | |||||||||
Total:
|
||||||||||||
Real Estate loans
|
||||||||||||
Residential
|
253 | 265 | - | |||||||||
Commercial
|
10,831 | 10,872 | - | |||||||||
Total Impaired Loans
|
$ | 11,084 | $ | 11,137 | $ | - |
Recorded
Investment
|
Unpaid
Principal
Balance
|
Associated
Allowance
|
||||||||||
December 31, 2012
With no related allowance recorded:
|
(In thousands) | |||||||||||
Real Estate Loans
|
||||||||||||
Residential
|
$ | 270 | $ | 286 | $ | - | ||||||
Commercial
|
10,494 | 10,554 | - | |||||||||
Commercial Loans
|
310 | 310 | - | |||||||||
Subtotal
|
11,074 | 11,150 | - | |||||||||
With an allowance recorded:
|
||||||||||||
Real Estate Loans
|
||||||||||||
Commercial
|
551 | 551 | 9 | |||||||||
Subtotal
|
551 | 551 | 9 | |||||||||
Total:
|
||||||||||||
Real Estate loans
|
||||||||||||
Residential
|
270 | 286 | - | |||||||||
Commercial
|
11,045 | 11,105 | 9 | |||||||||
Commercial Loans
|
310 | 310 | - | |||||||||
Total Impaired Loans
|
$ | 11,625 | $ | 11,701 | $ | 9 |
Average Recorded Investment | Interest Income Recognized | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Total:
|
|||||||||||||
Real Estate loans
|
|||||||||||||
Residential
|
$ |
262
|
$ |
296
|
$ |
1
|
$ |
1
|
|||||
Commercial
|
10,839
|
13,197
|
19
|
75
|
|||||||||
Commercial loans
|
-
|
385
|
-
|
-
|
|||||||||
Total Loans
|
$ |
11,101
|
$ |
13,878
|
$ |
20
|
$ |
76
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
March 31, 2013
|
||||||||||||||||||||
Commercial real estate loans
|
$ | 248,287 | $ | 10,819 | $ | 11,548 | $ | - | $ | 270,654 | ||||||||||
Commercial loans
|
26,443 | - | - | - | 26,443 | |||||||||||||||
Total
|
$ | 274,730 | $ | 10,819 | $ | 11,548 | $ | - | $ | 297,097 |
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
December 31, 2012
|
||||||||||||||||||||
Commercial real estate loans
|
$ |
251,484
|
$ |
11,245
|
$ |
11,755
|
$ | - | $ |
274,484
|
||||||||||
Commercial loans
|
24,427
|
318
|
368
|
- | 26,443 | |||||||||||||||
Total
|
$ |
275,911
|
$ |
11,563
|
$ |
12,123
|
$ | - | $ |
299,597
|
March 31, 2013
|
Performing
|
Nonperforming
|
Total
|
|||||||||
Residential real estate loans
|
$ | 150,800 | $ | 2,622 | $ | 153,422 | ||||||
Construction
|
14,750 | - | 14,750 | |||||||||
Consumer loans
|
13,922 | - | 13,922 | |||||||||
Total
|
$ | 179,472 | $ | 2,622 | $ | 182,094 | ||||||
December 31, 2012
|
Performing
|
Nonperforming
|
Total
|
|||||||||
Residential real estate loans
|
$ | 147,197 | $ | 2,846 | $ | 150,043 | ||||||
Construction
|
13,435 | - | 13,435 | |||||||||
Consumer loans
|
14,154 | - | 14,154 | |||||||||
Total
|
$ | 174,786 | $ | 2,846 | $ | 177,632 | ||||||
Current
|
31-60 Days Past Due
|
61-90 Days Past Due
|
Greater than 90 Days Past Due and still accruing
|
Non-Accrual
|
Total Past Due and Non-Accrual
|
Total Loans
|
||||||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||||||||||
Real Estate loans
|
||||||||||||||||||||||||||||
Residential
|
$ | 150,283 | $ | 457 | $ | 60 | $ | - | $ | 2,622 | $ | 3,139 | $ | 153,422 | ||||||||||||||
Commercial
|
259,838 | 856 | - | - | 9,960 | 10,816 | 270,654 | |||||||||||||||||||||
Construction
|
14,683 | 67 | - | - | - | 67 | 14,750 | |||||||||||||||||||||
Commercial loans
|
26,405 | 30 | 8 | - | - | 38 | 26,443 | |||||||||||||||||||||
Consumer loans
|
13,878 | 35 | 9 | - | - | 44 | 13,922 | |||||||||||||||||||||
Total
|
$ | 465,087 | $ | 1,445 | $ | 77 | $ | - | $ | 12,582 | $ | 14,104 | $ | 479,191 | ||||||||||||||
Current
|
31-60 Days Past Due
|
61-90 Days Past Due
|
Greater than 90 Days Past Due and still accruing
|
Non-Accrual
|
Total Past Due and Non-Accrual
|
Total Loans
|
||||||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||||||
Real Estate loans
|
||||||||||||||||||||||||||||
Residential
|
$ | 146,847 | $ | 94 | $ | 256 | $ | - | $ | 2,846 | $ | 3,196 | $ | 150,043 | ||||||||||||||
Commercial
|
261,527 | 2,333 | 598 | - | 10,026 | 12,957 | 274,484 | |||||||||||||||||||||
Construction
|
13,363 | 72 | - | - | - | 72 | 13,435 | |||||||||||||||||||||
Commercial loans
|
24,785 | - | - | - | 328 | 328 | 25,113 | |||||||||||||||||||||
Consumer loans
|
14,029 | 114 | 11 | - | - | 125 | 14,154 | |||||||||||||||||||||
Total
|
$ | 460,551 | $ | 2,613 | $ | 865 | $ | - | $ | 13,200 | $ | 16,678 | $ | 477,229 |
(In thousands)
|
Residential
Real Estate
|
Commercial
Real Estate
|
Construction
|
Commercial
|
Consumer
|
Total
|
||||||||||||||||||
Beginning balance, December 31, 2012
|
$ | 1,797 | $ | 3,183 | $ | 119 | $ | 223 | $ | 180 | $ | 5,502 | ||||||||||||
Charge Offs
|
(250 | ) | (313 | ) | - | - | (19 | ) | (582 | ) | ||||||||||||||
Recoveries
|
- | - | - | - | 6 | 6 | ||||||||||||||||||
Provision Expense
|
427 | 420 | 5 | (47 | ) | (5 | ) | 800 | ||||||||||||||||
Ending balance, March 31, 2013
|
$ | 1,974 | $ | 3,290 | $ | 124 | $ | 176 | $ | 162 | $ | 5,726 | ||||||||||||
Ending balance individually evaluated for impairment
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Ending balance collectively evaluated for impairment
|
$ | 1,974 | $ | 3,290 | $ | 124 | $ | 176 | $ | 162 | $ | 5,726 |
(In thousands)
|
Residential
Real Estate
|
Commercial
Real Estate
|
Construction
|
Commercial
|
Consumer
|
Total
|
||||||||||||||||||
Beginning balance, December 31, 2011
|
$ | 1,257 | $ | 3,838 | $ | 72 | $ | 147 | $ | 144 | $ | 5,458 | ||||||||||||
Charge Offs
|
(61 | ) | (103 | ) | - | (32 | ) | (196 | ) | |||||||||||||||
Recoveries
|
1 | - | - | - | 5 | 6 | ||||||||||||||||||
Provision Expense
|
2 | 272 | 3 | 44 | 29 | 350 | ||||||||||||||||||
Ending balance, March 31, 2012
|
$ | 1,199 | $ | 4,007 | $ | 75 | $ | 191 | $ | 146 | $ | 5,618 | ||||||||||||
Ending balance individually evaluated for impairment
|
$ | - | $ | 1,073 | $ | - | $ | - | $ | - | $ | 1,073 | ||||||||||||
Ending balance collectively evaluated for impairment
|
$ | 1,199 | $ | 2,934 | $ | 75 | $ | 191 | $ | 146 | $ | 4,545 |
Fair Value Measurement Using
Reporting Date
|
||||||||||||||||
Description
|
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
(In thousands)
|
||||||||||||||||
March 31, 2013
|
||||||||||||||||
Available for Sale:
|
||||||||||||||||
US Government agencies
|
$ | 17,295 | $ | - | $ | 17,295 | $ | - | ||||||||
States and political subdivisions
|
58,327 | - | 58,327 | - | ||||||||||||
Corporate obligations
|
8,830 | - | 8,830 | - | ||||||||||||
Mortgage-backed securities-government sponsored agencies
|
63,833 | - | 63,833 | - | ||||||||||||
Equity securities-financial services
|
313 | 313 |
-
|
- | ||||||||||||
Total
|
$ | 148,598 | $ | 313 | $ | 148,285 | $ | - | ||||||||
December 31, 2012
|
||||||||||||||||
Available for Sale:
|
||||||||||||||||
US Government agencies
|
$ | 13,092 | $ | - | $ | 13,092 | $ | - | ||||||||
States and political subdivisions
|
58,786 | - | 58,786 | - | ||||||||||||
Corporate obligations
|
8,868 | - | 8,868 | - | ||||||||||||
Mortgage-backed securities-government sponsored agencies
|
64,325 | - | 64,325 | - | ||||||||||||
Equity securities-financial services
|
319 | 319 |
-
|
-
|
||||||||||||
Total
|
$ | 145,390 | $ | 319 | $ | 145,071 | $ | - |
Fair Value Measurement Reporting Date using
|
||||||||||||||||
(In thousands)
|
||||||||||||||||
Description
|
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
March 31, 2013
|
||||||||||||||||
Impaired Loans
|
$ | 11,084 | $ | - | $ | - | $ | 11,084 | ||||||||
Foreclosed Real Estate Owned
|
1,099 | - | - | 1,099 | ||||||||||||
December 31, 2012
|
||||||||||||||||
Impaired Loans
|
$ | 11,616 | $ | - | $ | - | $ | 11,616 | ||||||||
Foreclosed Real Estate Owned
|
852 | - | - | 852 |
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||
(In thousands)
|
Fair Value
Estimate
|
Valuation Techniques
|
Unobservable
Input
|
Range (Weighted
Average)
|
||||||
March 31, 2013
|
||||||||||
Impaired loans
|
$ | 11,084 |
Appraisal of collateral(1)
|
Appraisal adjustments(2)
|
0-30% (24.07%) | |||||
Foreclosed real estate owned
|
$ | 1,099 |
Appraisal of collateral(1)(3)
|
Liquidation Expenses(2)
|
20% |
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||
(In thousands)
|
Fair Value
Estimate
|
Valuation Techniques
|
Unobservable
Input
|
Range (Weighted
Average)
|
||||||
December 31, 2012
|
||||||||||
Impaired loans
|
$ | 11,616 |
Appraisal of collateral(1)
|
Appraisal adjustments(2)
|
0-30% (24.10%) | |||||
Foreclosed real estate owned
|
$ | 852 |
Appraisal of collateral(1)(3)
|
Liquidation Expenses(2)
|
20% |
(1) | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable, less any associated allowance. |
(2) | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
(3) |
Includes qualitative adjustments by management and estimated liquidation expenses.
|
Fair Value Measurements at March 31, 2013
|
||||||||||||||||||||
Carrying Amount
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 15,945 | $ | 15,945 | $ | 15,945 | $ | - | $ | - | ||||||||||
Securities
|
148,771 | 148,773 | 313 | 148,460 | - | |||||||||||||||
Loans receivable, net
|
472,937 | 486,608 | - | - | 486,608 | |||||||||||||||
Mortgage servicing rights
|
234 | 234 | 234 | - | - | |||||||||||||||
Regulatory Stock
|
2,533 | 2,533 | 2,533 | - | - | |||||||||||||||
Bank owned life insurance
|
14,402 | 14,402 | 14,402 | - | - | |||||||||||||||
Accrued interest receivable
|
2,456 | 2,456 | 2,456 | - | - | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
535,632 | 537,201 | 324,564 | - | 212,637 | |||||||||||||||
Short-term borrowings
|
21,859 | 21,859 | 21,859 | - | - | |||||||||||||||
Other borrowings
|
25,343 | 28,068 | - | - | 28,068 | |||||||||||||||
Accrued interest payable
|
1,082 | 1,082 | 1,082 | - | - | |||||||||||||||
Off-balance sheet financial instruments: | ||||||||||||||||||||
Commitments to extend credit and outstanding letters of credit
|
- | - | - | - | - |
Fair Value Measurements at December 31, 2012
|
||||||||||||||||||||
Carrying Amount
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 12,295 | $ | 12,295 | $ | 12,295 | $ | - | $ | - | ||||||||||
Securities
|
145,563 | 145,567 | 319 | 145,248 | - | |||||||||||||||
Loans receivable, net
|
471,208 | 485,848 | - | - | 485,848 | |||||||||||||||
Mortgage servicing rights
|
243 | 243 | - | 243 | - | |||||||||||||||
Regulatory stock
|
2,630 | 2,630 | 2,630 | - | - | |||||||||||||||
Bank owned life insurance
|
15,357 | 15,357 | 15,357 | - | - | |||||||||||||||
Accrued interest receivable
|
2,393 | 2,393 | 2,393 | - | - | |||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
524,425 | 526,081 | 313,166 | - | 212,915 | |||||||||||||||
Short-term borrowings
|
28,697 | 28,697 | 28,697 | - | - | |||||||||||||||
Other borrowings
|
22,487 | 25,426 | - | - | 25,426 | |||||||||||||||
Accrued interest payable
|
1,242 | 1,242 | 1,242 | - | - | |||||||||||||||
Off-balance sheet financial instruments:
|
||||||||||||||||||||
Commitments to extend credit and outstanding letters of credit
|
- | - | - | - | - |
•
|
our ability to realize the anticipated benefits from our acquisition of North Penn Bancorp, Inc.
|
|
•
|
possible future impairment of intangible assets
|
|
•
|
our ability to effectively manage future growth
|
|
•
|
loan losses in excess of our allowance
|
|
•
|
risks inherent in commercial lending
|
|
•
|
real estate collateral which is subject to declines in value
|
|
•
|
potential other-than-temporary impairments
|
|
•
|
higher deposit insurance premiums
|
|
•
|
soundness of other financial institutions
|
|
•
|
increased compliance burden under new financial reform legislation
|
|
•
|
risk of failure to stabilize the financial system
|
|
•
|
current market volatility
|
|
•
|
potential liquidity risk
|
|
•
|
availability of capital
|
|
•
|
regional economic factors
|
|
•
|
loss of senior officers
|
|
•
|
comparatively low legal lending limits
|
|
•
|
risks of new capital requirements
|
|
•
|
limited market for the Company’s stock
|
|
•
|
restrictions on ability to pay dividends
|
|
•
|
common stock may lose value
|
|
•
|
competitive environment
|
|
•
|
issuing additional shares may dilute ownership
|
|
•
|
extensive and complex governmental regulation and associated cost
|
|
•
|
interest rate risks
|
March 31, 2013 | December 31, 2012 | |||||||||||||||
(dollars in thousands)
|
Amount
|
% of portfolio
|
Amount
|
% of portfolio
|
||||||||||||
US Government agencies
|
$ | 17,295 | 11.6 | % | $ | 13,092 | 9.0 | % | ||||||||
States and political subdivisions
|
58,500 | 39.3 | 58,959 | 40.5 | ||||||||||||
Corporate obligations
|
8,830 | 6.0 | 8,868 | 6.1 | ||||||||||||
Mortgage-backed securities-government sponsored entities
|
63,833 | 42.9 | 64,325 | 44.2 | ||||||||||||
Equity securities-financial services
|
313 | 0.2 | 319 | 0.2 | ||||||||||||
Total
|
$ | 148,771 | 100.0 | % | $ | 145,563 | 100.0 | % |
(dollars in thousands)
|
March 31, 2013
|
December 31, 2012
|
||||||
Loans accounted for on a non-accrual basis:
|
||||||||
Commercial and all other
|
$ | - | $ | 328 | ||||
Real Estate
|
12,582 | 12,872 | ||||||
Total
|
12,582 | 13,200 | ||||||
Accruing loans which are contractually
|
||||||||
past due 90 days or more
|
- | - | ||||||
Total non-performing loans
|
12,582 | 13,200 | ||||||
Foreclosed real estate
|
1,099 | 852 | ||||||
Total non-performing assets
|
$ | 13,681 | $ | 14,052 | ||||
Allowance for loans losses
|
$ | 5,726 | $ | 5,502 | ||||
Coverage of non-performing loans
|
0.46 | x | 0.42 | x | ||||
Non-performing loans to total loans
|
2.63 | % | 2.77 | % | ||||
Non-performing loans to total assets
|
1.85 | % | 1.96 | % | ||||
Non-performing assets to total assets
|
2.01 | % | 2.09 | % |
(dollars in thousands)
|
March 31, 2013
|
December 31, 2012
|
||||||
Non-interest bearing demand
|
$ | 84,357 | $ | 82,075 | ||||
Interest bearing demand
|
46,711 | 45,616 | ||||||
Money market deposit accounts
|
123,664 | 116,841 | ||||||
Savings
|
69,832 | 68,633 | ||||||
Time deposits <$100,000
|
136,644 | 139,949 | ||||||
Time deposits >$100,000
|
74,424 | 71,311 | ||||||
Total
|
$ | 535,632 | $ | 524,425 |
March 31, 2013
|
December 31, 2012
|
|||||||
Notes with the FHLB:
|
||||||||
Convertible note due May 2013 at 3.015%
|
$ | 5,000 | $ | 5,000 | ||||
Fixed rate note due July 2015 at 4.34%
|
7,441 | 7,487 | ||||||
Convertible note due January 2017 at 4.71%
|
10,000 | 10,000 | ||||||
Amortizing advance due January, 2018 at 0.91%
|
2,902 | - | ||||||
$ | 25,343 | $ | 22,487 |
March 31, 2013
|
December 31, 2012
|
|||||||
(in thousands)
|
||||||||
Unfunded availability under loan commitments
|
$ | 22,836 | $ | 17,582 | ||||
Unfunded commitments under lines of credit
|
49,433 | 42,735 | ||||||
Standby letters of credit
|
6,128 | 6,128 | ||||||
$ | 78,397 | $ | 66,445 |
March 31, 2013 | December 31, 2012 | |||
Tier 1 Capital
|
||||
(To average assets) | 12.18% | 11.77% | ||
Tier 1 Capital
|
||||
(To risk-weighted assets) | 16.54% | 16.37% | ||
Total Capital
|
||||
(To risk-weighted assets) | 17.72% | 17.51% |
(Tax-Equivalent Basis, dollars in thousands)
|
Three Months Ended March 31,
|
|||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Average
Balance
(2)
|
Interest
(1)
|
Average
Rate
(3)
|
Average
Balance
(2)
|
Interest
(1)
|
Average
Rate
(3)
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Interest bearing deposits with banks
|
$ | 3,983 | $ | 3 | 0.30 | % | $ | 5,718 | $ | 4 | 0.28 | % | ||||||||||||
Securities held-to-maturity
|
173 | 3 | 6.94 | 171 | 2 | 4.68 | ||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||
Taxable
|
89,946 | 400 | 1.78 | 92,769 | 533 | 2.30 | ||||||||||||||||||
Tax-exempt(1)
|
54,973 | 706 | 5.14 | 53,735 | 745 | 5.55 | ||||||||||||||||||
Total securities available for sale (1)
|
144,919 | 1,106 | 3.05 | 146,504 | 1,278 | 3.49 | ||||||||||||||||||
Loans receivable (1) (4) (5)
|
478,170 | 6,231 | 5.21 | 469,937 | 6,437 | 5.48 | ||||||||||||||||||
Total interest earning assets
|
627,245 | 7,343 | 4.68 | 622,330 | 7,721 | 4.96 | ||||||||||||||||||
Non-interest earning assets:
|
||||||||||||||||||||||||
Cash and due from banks
|
8,835 | 8,299 | ||||||||||||||||||||||
Allowance for loan losses
|
(5,580 | ) | (5,543 | ) | ||||||||||||||||||||
Other assets
|
44,199 | 40,505 | ||||||||||||||||||||||
Total non-interest earning assets
|
47,454 | 48,839 | ||||||||||||||||||||||
Total Assets
|
$ | 674,699 | $ | 671,169 | ||||||||||||||||||||
Liabilities and Stockholders' Equity
|
||||||||||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||||||
Interest bearing demand and money market
|
$ | 167,514 | 111 | 0.27 | $ | 165,561 | 139 | 0.34 | ||||||||||||||||
Savings
|
69,178 | 17 | 0.10 | 67,913 | 25 | 0.15 | ||||||||||||||||||
Time
|
210,035 | 626 | 1.19 | 225,959 | 797 | 1.41 | ||||||||||||||||||
Total interest bearing deposits
|
446,727 | 754 | 0.68 | 459,433 | 961 | 0.84 | ||||||||||||||||||
Short-term borrowings
|
22,137 | 12 | 0.22 | 18,459 | 11 | 0.24 | ||||||||||||||||||
Other borrowings
|
24,734 | 190 | 3.07 | 27,651 | 244 | 3.53 | ||||||||||||||||||
Total interest bearing liabilities
|
493,598 | 956 | 0.77 | 505,543 | 1,216 | 0.96 | ||||||||||||||||||
Non-interest bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
83,618 | 72,078 | ||||||||||||||||||||||
Other liabilities
|
4,073 | 3,969 | ||||||||||||||||||||||
Total non-interest bearing liabilities
|
87,691 | 76,047 | ||||||||||||||||||||||
Stockholders' equity
|
93,410 | 89,579 | ||||||||||||||||||||||
Total Liabilities and Stockholders' Equity
|
$ | 674,699 | $ | 671,169 | ||||||||||||||||||||
Net interest income (tax equivalent basis)
|
6,387 | 3.91 | % | 6,505 | 4.00 | % | ||||||||||||||||||
Tax-equivalent basis adjustment
|
(286 | ) | (318 | ) | ||||||||||||||||||||
Net interest income
|
$ | 6,101 | $ | 6,187 | ||||||||||||||||||||
Net interest margin (tax equivalent basis)
|
4.07 | % | 4.18 | % |
(1)
|
Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 34%.
|
(2)
|
Average balances have been calculated based on daily balances.
|
(3)
|
Annualized
|
(4)
|
Loan balances include non-accrual loans and are net of unearned income.
|
(5)
|
Loan yields include the effect of amortization of deferred fees, net of costs.
|
Increase/(Decrease) | ||||||||||||
Three months ended March 31, 2013 Compared to | ||||||||||||
Three months ended March 31, 2012 | ||||||||||||
Variance due to | ||||||||||||
Volume | Rate | Net | ||||||||||
(dollars in thousands) | ||||||||||||
Interest earning assets:
|
|
|||||||||||
Interest bearing deposits with banks
|
$ | (3 | ) | $ | 2 | $ | (1 | ) | ||||
Securities held to maturity
|
- | 1 | 1 | |||||||||
Securities available for sale:
|
||||||||||||
Taxable
|
(16 | ) | (117 | ) | (133 | ) | ||||||
Tax-exempt securities
|
95 | (134 | ) | (39 | ) | |||||||
Total securities
|
79 | (251 | ) | (172 | ) | |||||||
Loans receivable
|
609 | (815 | ) | (206 | ) | |||||||
Total interest earning assets
|
685 | (1,063 | ) | (378 | ) | |||||||
Interest bearing liabilities:
|
||||||||||||
Interest-bearing demand and money market
|
11 | (39 | ) | (28 | ) | |||||||
Savings
|
3 | (11 | ) | (8 | ) | |||||||
Time
|
(53 | ) | (118 | ) | (171 | ) | ||||||
Total interest bearing deposits
|
(39 | ) | (168 | ) | (207 | ) | ||||||
Short-term borrowings
|
6 | (5 | ) | 1 | ||||||||
Other borrowings
|
(24 | ) | (30 | ) | (54 | ) | ||||||
Total interest bearing liabilities
|
(57 | ) | (203 | ) | (260 | ) | ||||||
Net interest income (tax-equivalent basis)
|
$ | 742 | $ | (860 | ) | $ | (118 | ) |
(dollars in thousands)
|
Three months ended
|
||||||
March 31, 2012 to March 31, 2013
|
|||||||
Net income three months ended March 31, 2012
|
$ | 2,186 | |||||
Change due to:
|
|||||||
Net interest income
|
(86 | ) | |||||
Provision for loan losses
|
(450 | ) | |||||
Gain on sales of loans and securities
|
(264 | ) | |||||
Earnings and proceeds on bank-owned life insurance
|
793 | ||||||
Other income
|
57 | ||||||
Salaries and employee benefits
|
(60 | ) | |||||
Occupancy, furniture and equipment
|
(42 | ) | |||||
Foreclosed real estate expense
|
(69 | ) | |||||
All other expenses
|
17 | ||||||
Income tax expense
|
226 | ||||||
Net income three months ended March 31, 2013
|
$ | 2,308 |
3 Months
|
3-12 Months
|
1 to 3 Years
|
Over
3 Years
|
Total
|
||||||||||||||||
Federal funds sold and interest bearing deposits
|
$ | 9,182 | $ | - | $ | - | $ | - | $ | 9,182 | ||||||||||
Securities
|
12,825 | 23,888 | 52,722 | 59,336 | 148,771 | |||||||||||||||
Loans Receivable
|
112,858 | 114,873 | 133,468 | 117,464 | 478,663 | |||||||||||||||
Total RSA
|
134,865 | 138,761 | 186,190 | 176,800 | 636,616 | |||||||||||||||
`
|
||||||||||||||||||||
Non-maturity interest-bearing deposits
|
38,578 | 43,762 | 116,030 | 41,837 | 240,207 | |||||||||||||||
Time Deposits
|
33,194 | 67,520 | 79,846 | 30,508 | 211,068 | |||||||||||||||
Other
|
9,947 | 8,250 | 17,868 | 11,137 | 47,202 | |||||||||||||||
Total RSL
|
81,719 | 119,532 | 213,744 | 83,482 | 498,477 | |||||||||||||||
Interest Sensitivity Gap
|
$ | 53,146 | $ | 19,229 | $ | (27,554 | ) | $ | 93,318 | $ | 138,139 | |||||||||
Cumulative Gap
|
53,146 | 72,375 | 44,821 | 138,139 | ||||||||||||||||
RSA/RSL-cumulative
|
165.0 | % | 136.0 | % | 110.8 | % | 127.7 | % | ||||||||||||
December 31, 2012
|
||||||||||||||||||||
Interest Sensitivity Gap
|
$ | 54,309 | $ | 8,226 | $ | (19,404 | ) | $ | 87,036 | $ | 130,167 | |||||||||
Cumulative Gap
|
54,309 | 62,535 | 43,131 | 130,167 | ||||||||||||||||
RSA/RSL-cumulative
|
173.6 | % | 130.7 | % | 110.4 | % | 126.4 | % |
No.
|
Description
|
3(i)
|
Articles of Incorporation of Norwood Financial Corp.(1)
|
3(ii)
|
Bylaws of Norwood Financial Corp. (2)
|
4.0
|
Specimen Stock Certificate of Norwood Financial Corp. (1)
|
10.1
|
Employment Agreement with Lewis J. Critelli (2)
|
10.2
|
Change in Control Severance Agreement with William S. Lance(2)
|
10.3
|
Norwood Financial Corp. Stock Option Plan (3)
|
10.4
|
Change in Control Severance Agreement with Robert J. Mancuso(4)
|
10.5
|
Salary Continuation Agreement between the Bank and William W. Davis, Jr. (5)
|
10.6
|
Salary Continuation Agreement between the Bank and Lewis J. Critelli (5)
|
10.7
|
1999 Directors Stock Compensation Plan (3)
|
10.8
|
Salary Continuation Agreement between the Bank and John H. Sanders (6)
|
10.9
|
2006 Stock Option Plan (7)
|
10.10
|
First and Second Amendments to Salary Continuation Agreement with William W. Davis, Jr. (8)
|
10.11
|
First and Second Amendments to Salary Continuation Agreement with Lewis J. Critelli (8)
|
10.12
|
First and Second Amendments to Salary Continuation Agreement with John H. Sanders (8)
|
31
|
Rule 13a-14(a)/15d-14(a) Certification of CEO and CFO
|
32
|
Certification pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of Sarbanes Oxley Act of 2002
|
101.INS
|
XBRL Instance Document *
|
101.SCH
|
XBRL Schema Document *
|
101.CAL
|
XBRL Calculation Linkbase Document *
|
101.LAB
|
XBRL Labels Linkbase Document *
|
101.PRE
|
XBRL Presentation Linkbase Document *
|
101.DEF
|
XBRL Definition Linkbase Document *
|
*
|
Submitted as Exhibits 101 to this Form 10-Q are documents formatted in XBRL (Extensible Business Reporting Language). Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability.
|
(1)
|
Incorporated herein by reference into this document from the Exhibits to Form 10, Registration Statement initially filed with the Commission on April 29, 1996, Registration No. 0-28364
|
(2)
|
Incorporated by reference into this document from the identically numbered exhibits to the Registrant’s Form 10-K filed with the Commission on March 15, 2010.
|
(3)
|
Incorporated herein by reference to the identically numbered exhibits of the Registrant’s Form 10-K filed with the Commission on March 23, 2000.
|
(4)
|
Incorporated by reference into this document from the identically numbered exhibit to the Registrant’s Form 10-K filed with the Commission on March 14, 2013, File No. 0-28364.
|
(5)
|
Incorporated by reference into this document from the Exhibits to Form S-8 filed with the Commission on August 14, 1998, File No. 333-61487.
|
(6)
|
Incorporated herein by reference to the identically numbered exhibit to the Registrant’s Form 10-K filed with the Commission on March 22, 2004.
|
(7)
|
Incorporated by reference to this document from Exhibit 4.1 to Registrant’s Registration Statement on Form S-8 (File No. 333-134831) filed with the Commission on June 8, 2006.
|
(8)
|
Incorporated herein by reference from the Exhibits to the Registrant’s Current Report on Form 8-K filed on April 4, 2006.
|
NORWOOD FINANCIAL CORP.
|
|||
Date: May 10, 2013
|
By:
|
/s/ Lewis J. Critelli
|
|
Lewis J. Critelli
|
|||
President and Chief Executive Officer
|
|||
(Principal Executive Officer)
|
|||
Date: May 10, 2013
|
By:
|
/s/ William S. Lance
|
|
William S. Lance
|
|||
Executive Vice President and
|
|||
Chief Financial Officer
|
|||
(Principal Financial Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Norwood Financial Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: | May 10, 2013 | /s/ Lewis J. Critelli | |
Lewis J. Critelli
|
|||
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Norwood Financial Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: | May 10, 2013 | /s/ William S. Lance | |
William S. Lance
|
|||
Executive Vice President and Chief Financial Officer
|
/s/ Lewis J. Critelli | /s/ William S. Lance | |
Lewis J. Critelli
|
William S. Lance
|
|
President and Chief Executive Officer
|
Executive Vice President and Chief Financial Officer
|
Loans Receivable and Allowance for Loan Losses (Loans Acquired and Accounted for in Accordance with ASC 310-30) (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Loans Receivable and Allowance for Loan Losses [Abstract] | ||
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Outstanding Balance | $ 1,102 | $ 1,145 |
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Carrying Amount | $ 1,049 | $ 1,069 |
Fair Value Measurements and Fair Value of Financial Instruments (Additional Qualitative Information about Level 3 Assets) (Details) (Significant Unobservable Inputs (Level 3) [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|||||||||
Impaired Loans [Member]
|
||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, Fair Value Disclosure, Nonrecurring | $ 11,084 | |||||||||
Fair Value Measurements, Valuation Techniques | Appraisal of collateral |
Appraisal of collateral |
[1] | |||||||
Impaired Loans [Member] | Minimum [Member] | Unobservable Inputs Appraisal Adjustments [Member]
|
||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Fair Value Disclosure, Unbservable Input Range | 0.00% | [2] | ||||||||
Impaired Loans [Member] | Maximum [Member] | Unobservable Inputs Appraisal Adjustments [Member]
|
||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Fair Value Disclosure, Unbservable Input Range | 30.00% | [2] | 30.00% | [2] | ||||||
Impaired Loans [Member] | Weighted Average [Member] | Unobservable Inputs Appraisal Adjustments [Member]
|
||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Fair Value Disclosure, Unbservable Input Range | 24.07% | [2] | 24.10% | [2] | ||||||
Foreclosed Real Estate Owned [Member]
|
||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,099 | |||||||||
Fair Value Measurements, Valuation Techniques | Appraisal of collateral |
Appraisal of collateral |
[1],[3] | |||||||
Foreclosed Real Estate Owned [Member] | Unobservable Inputs - Liquidation Expenses [Member]
|
||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Fair Value Disclosure, Unbservable Input Range | 20.00% | 20.00% | ||||||||
|
Loans Receivable and Allowance for Loan Losses (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable and Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Loans Receivable [Table Text Block] |
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Changes In The Accretable Yield For Purchased Credit Impaired Loans [Table Text Block] |
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Loans Acquired And Accounted For in Accordance With ASC 310-30 [Table Text Block] |
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Allowance for Loan Losses and Recorded Investment in Financing Receivables [Table Text Block] |
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Impaired Loans and Related Interest Income by Loan Portfolio Class [Table Text Block] | following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired.
The following information for impaired loans is presented for the periods ended March 31, 2013 and 2012:
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Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating [Table Text Block] |
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Loan Portfolio Summarized by the Past Due Status [Table Text Block] |
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Loans Receivable and Allowance for Loan Losses (Loan Portfolio Summarized by the Past Due Status) (Details) (USD $)
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3 Months Ended | 12 Months Ended |
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Mar. 31, 2013
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Dec. 31, 2012
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Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 465,087,000 | $ 460,551,000 |
31-60 Days Past Due | 1,445,000 | 2,613,000 |
61-90 Days Past Due | 77,000 | 865,000 |
Non-Accrual | 12,582,000 | 13,200,000 |
Total Past Due and Non-Accrual | 14,104,000 | 16,678,000 |
Total Loans | 479,191,000 | 477,229,000 |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | 0 | 9,000,000,000 |
Residential Real Estate Loans [Member]
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Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 150,283,000 | 146,847,000 |
31-60 Days Past Due | 457,000 | 94,000 |
61-90 Days Past Due | 60,000 | 256,000 |
Non-Accrual | 2,622,000 | 2,846,000 |
Total Past Due and Non-Accrual | 3,139,000 | 3,196,000 |
Total Loans | 153,422,000 | 150,043,000 |
Construction Real Estate Loans [Member]
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Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 14,683,000 | 13,363,000 |
31-60 Days Past Due | 67,000 | 72,000 |
Total Past Due and Non-Accrual | 67,000 | 72,000 |
Total Loans | 14,750,000 | 13,435,000 |
Commercial Real Estate Loans [Member]
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Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 259,838,000 | 261,527,000 |
31-60 Days Past Due | 856,000 | 2,333,000 |
61-90 Days Past Due | 598,000 | |
Non-Accrual | 9,960,000 | 10,026,000 |
Total Past Due and Non-Accrual | 10,816,000 | 12,957,000 |
Total Loans | 270,654,000 | 274,484,000 |
Commercial Loans [Member]
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Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 26,405,000 | 24,785,000 |
31-60 Days Past Due | 30,000 | |
61-90 Days Past Due | 8,000 | |
Non-Accrual | 328,000 | |
Total Past Due and Non-Accrual | 38,000 | 328,000 |
Total Loans | 26,443,000 | 25,113,000 |
Consumer Loans [Member]
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Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 13,878,000 | 14,029,000 |
31-60 Days Past Due | 35,000 | 114,000 |
61-90 Days Past Due | 9,000 | 11,000 |
Total Past Due and Non-Accrual | 44,000 | 125,000 |
Total Loans | $ 13,922,000 | $ 14,154,000 |
Basis of Presentation
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3 Months Ended |
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Mar. 31, 2013
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Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation
The unaudited consolidated financial statements include the accounts of Norwood Financial Corp. (Company) and its wholly-owned subsidiary, Wayne Bank (Bank) and the Bank's wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., Norwood Settlement Services, LLC, and WTRO Properties. All significant intercompany transactions have been eliminated in consolidation.
The accompanying unaudited consolidated financial statements have been prepared in conformity with generally accepted accounting principles for interim financial statements and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. The financial statements reflect, in the opinion of management, all normal, recurring adjustments necessary to present fairly the financial position and results of operations of the Company. The operating results for the three month period ended March 31, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013 or any other future interim period.
These statements should be read in conjunction with the consolidated financial statements and related notes which are incorporated by reference in the Company's Annual Report on Form 10-K for the year-ended December 31, 2012.
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