Profile: Norwood Financial Corp (NWFL.A)
16 Mar 2018
Norwood Financial Corp., incorporated on November 15, 1995, is a bank holding company. The Company operates through its subsidiary, Wayne Bank (the Bank). The Bank is a chartered bank and trust company. The Bank is an independent community bank that operates over five offices in the Wayne County, approximately three offices in Pike County, four offices in Monroe County and over three offices in Lackawanna County. The Bank offers various personal and business credit services, trust and investment products, and real estate settlement services to the consumers, businesses, nonprofit organizations and municipalities in each of the communities that the Bank serves. The Bank primarily serves the Pennsylvania counties of Wayne, Pike, Monroe and Lackawanna, as well as the Susquehanna County. In addition, the Bank operates approximately 20 automated teller machines (ATMs), each one located at a branch facility. The Bank operates a Wealth Management/Trust Department, which provides estate planning, investment management and financial planning to customers.
The Bank's loan products include loans for personal and business use. Personal lending includes mortgage lending to finance principal residences and second home dwellings. The Bank's loan products include fixed-rate mortgage products with terms up to approximately 30 years, which may be sold, in the secondary market through the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Bank (FHLB) or held in the Bank's portfolio. Fixed-rate home equity loans are originated on terms till approximately 180 months. It also offers home equity lines of credit tied to the prime rate. The Bank also offers indirect dealer financing of automobiles (new and used), boats, and recreational vehicles through a limited network of dealers in Northeast Pennsylvania.
The Company has approximately $23.5 million of indirect loans in the portfolio. Commercial loans and commercial mortgages are provided to local small and mid-sized businesses at a range of terms and rate structures. The Bank has approximately $52.6 million in loans to the hospitality lodging industry, as well as over $27.5 million of loans outstanding to automobile dealers. Commercial lending activities include lines of credit, revolving credit, term loans, mortgages, various forms of secured lending and a limited amount of letter of credit facilities. The Bank's construction lending has primarily involved lending for commercial construction projects and for single-family residences. For commercial projects, the Bank typically also provides the permanent financing after the construction period, as a commercial mortgage. The Bank also originates loans secured by undeveloped land. Its total loans amount to approximately $560.2 million.
The Company maintains a portfolio of investment securities consisting of obligations of the Unites States Government and its agencies, including mortgage-backed securities and obligations of states, counties and municipalities, including school districts. The Company also has corporate debt obligations in the portfolio, as well as a portfolio of equity instruments of other financial services companies. The Company considers its investment portfolio a source of earnings and liquidity. Investment securities may also be pledged to secure public deposits and customer repurchase agreements. The Company's total securities amount to approximately $138.9 million.
Sources of Funds
The Bank provides a range of deposit products to its retail and business customers. These include interest-bearing and noninterest bearing transaction accounts, statement savings and money market accounts. Other services the Bank offers its customers on a limited basis include cash management, direct deposit, remote deposit capture and automated clearing house (ACH) activity. The Bank's total deposits are approximately $550.9 million.
Norwood Investment Corp. (NIC), an insurance agency, is a subsidiary of the Bank. NIC's business is annuity and mutual fund sales, and discount brokerage activities primarily to customers of the Bank. Other subsidiaries of the Bank include WCB Realty Corp., a real estate company; WTRO Properties Inc., a real estate company, and Norwood Settlement Services, LLC, a provider of title and settlement services.
Norwood Financial Corp
717 Main St
PO Box 269
HONESDALE PA 18431-0269