Document and Entity Information
v3.19.2
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2019
Aug. 01, 2019
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2019  
Entity Registrant Name NORWOOD FINANCIAL CORP  
Entity Central Index Key 0001013272  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q2  
Entity Current Reporting Status Yes  
Entity Shell Company false  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   6,292,106
Entity Interactive Data Current Yes  

Consolidated Balance Sheets
v3.19.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
ASSETS    
Cash and due from banks $ 14,207 $ 18,039
Interest-bearing deposits with banks 4,265 309
Cash and cash equivalents 18,472 18,348
Securities available for sale, at fair value 238,083 243,277
Loans receivable 887,673 850,182
Less: Allowance for loan losses 8,228 8,452
Net loans receivable 879,445 841,730
Regulatory stock, at cost 3,155 3,926
Bank premises and equipment, net 13,880 13,846
Bank owned life insurance 38,340 37,932
Accrued interest receivable 3,979 3,776
Foreclosed real estate owned 1,677 1,115
Goodwill 11,331 11,331
Other intangibles 280 336
Other assets 13,886 8,942
TOTAL ASSETS 1,222,528 1,184,559
LIABILITIES    
Deposits: Non-interest bearing demand 221,764 201,457
Deposits: Interest-bearing demand 759,460 745,323
Total deposits 981,224 946,780
Short-term borrowings 48,094 53,046
Other borrowings 44,024 52,284
Accrued interest payable 3,008 1,806
Other liabilities 14,695 8,358
TOTAL LIABILITIES 1,091,045 1,062,274
STOCKHOLDERS' EQUITY    
Preferred stock, no par value per share, authorized 5,000,000 shares
Common stock, $0.10 par value per share, authorized: 2019: 20,000,000 shares, 2018: 10,000,000 shares issued: 2019: 6,304,413 shares, 2018: 6,295,113 shares 630 630
Surplus 48,741 48,322
Retained earnings 82,127 78,434
Treasury stock at cost: 2019: 13,807 shares, 2018: 2,470 shares (455) (81)
Accumulated other comprehensive income (loss) 440 (5,020)
TOTAL STOCKHOLDERS' EQUITY 131,483 122,285
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,222,528 $ 1,184,559

Consolidated Balance Sheets (Parenthetical)
v3.19.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2019
Dec. 31, 2018
Consolidated Balance Sheets [Abstract]    
Preferred Stock, No Par Value
Preferred Stock, Shares Authorized 5,000,000 5,000,000
Common Stock, Par Value Per Share $ 0.10 $ 0.10
Common Stock, Shares Authorized 20,000,000 10,000,000
Common Stock, Shares, Issued 6,304,413 6,295,113
Treasury Stock, Shares 13,807 2,470

Consolidated Statements of Income
v3.19.2
Consolidated Statements of Income - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
INTEREST INCOME        
Loans receivable, including fees $ 10,328 $ 8,857 $ 20,298 $ 17,344
Securities 1,435 1,536 2,876 3,060
Other 51 43 66 61
Total Interest Income 11,814 10,436 23,240 20,465
INTEREST EXPENSE        
Deposits 1,839 1,052 3,568 2,082
Short-term borrowings 85 38 209 90
Other borrowings 278 131 581 271
Total interest expense 2,202 1,221 4,358 2,443
NET INTEREST INCOME 9,612 9,215 18,882 18,022
PROVISION FOR LOAN LOSSES 300 425 750 975
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 9,312 8,790 18,132 17,047
OTHER INCOME        
Other Income 1,279 1,427 2,580 2,696
Net realized gains on sales of securities 64 58 64 200
Gain on sale of loans, net 67   110  
Earnings and proceeds on bank owned life insurance 207 279 408 552
Other 106 161 249 323
Total Other Income 1,641 1,774 3,201 3,468
OTHER EXPENSES        
Salaries and employee benefits 3,599 3,406 7,248 6,868
Occupancy, furniture & equipment, net 940 857 1,864 1,749
Data processing and related operations 472 340 920 658
Taxes, other than income 179 153 340 327
Professional fees 226 229 476 459
Federal Deposit Insurance Corporation insurance 84 86 155 178
Foreclosed real estate (10) 114 13 95
Amortization of intangibles 27 33 56 68
Other 1,268 1,135 2,361 2,198
Total other expenses 6,785 6,353 13,433 12,600
INCOME BEFORE INCOME TAXES 4,168 4,211 7,900 7,915
INCOME TAX EXPENSE 646 698 1,188 1,273
NET INCOME $ 3,522 $ 3,513 $ 6,712 $ 6,642
BASIC EARNINGS PER SHARE $ 0.56 $ 0.57 $ 1.07 $ 1.07
DILUTED EARNINGS PER SHARE $ 0.56 $ 0.56 $ 1.06 $ 1.06
Service Charges And Fees [Member]        
OTHER INCOME        
Other Income $ 1,052 $ 1,101 $ 2,083 $ 2,082
Income From Fiduciary Activities [Member]        
OTHER INCOME        
Other Income $ 145 $ 175 $ 287 $ 311

Consolidated Statements of Comprehensive Income
v3.19.2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Consolidated Statements of Comprehensive Income [Abstract]        
Net income $ 3,522 $ 3,513 $ 6,712 $ 6,642
Investment securities available for sale:        
Unrealized holding gain (loss) 3,250 (840) 6,975 (5,330)
Tax effect (682) 177 (1,464) 1,119
Reclassification of investment securities gains recognized in net income (64) (58) (64) (200)
Tax effect 13 12 13 42
Other comprehensive income (loss) 2,517 (709) 5,460 (4,369)
Comprehensive Income $ 6,039 $ 2,804 $ 12,172 $ 2,273

Consolidated Statements of Changes in Stockholders' Equity
v3.19.2
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Common Stock [Member]
Surplus [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Total
Beginning balance at Dec. 31, 2017 $ 626 $ 47,431 $ 70,426 $ (77) $ (2,667) $ 115,739
Beginning balance, shares at Dec. 31, 2017 6,256,063     2,608    
Net income     6,642     6,642
Other comprehensive income (loss)         (4,369) (4,369)
Cash dividends declared     (2,753)     (2,753)
Compensation expense related to restricted stock   102       102
Acquisition of treasury stock       $ (179)   (179)
Acquisition of treasury stock, shares       5,446    
Stock options exercised $ 1 164   $ 68   233
Stock options exercised, shares 10,325     2,325    
Compensation expense related to stock options   118       118
Ending balance, shares at Jun. 30, 2018 6,266,388     5,729    
Ending balance at Jun. 30, 2018 $ 627 47,815 74,315 $ (188) (7,036) 115,533
Beginning balance at Mar. 31, 2018 $ 626 47,548 72,179 $ (188) (6,327) 113,838
Beginning balance, shares at Mar. 31, 2018 6,257,563     5,729    
Net income     3,513     3,513
Other comprehensive income (loss)         (709) (709)
Cash dividends declared     (1,377)     (1,377)
Compensation expense related to restricted stock   51       51
Acquisition of treasury stock
Stock options exercised $ 1 157       158
Stock options exercised, shares 8,825          
Compensation expense related to stock options   59       59
Ending balance, shares at Jun. 30, 2018 6,266,388     5,729    
Ending balance at Jun. 30, 2018 $ 627 47,815 74,315 $ (188) (7,036) 115,533
Beginning balance at Dec. 31, 2018 $ 630 48,322 78,434 $ (81) (5,020) 122,285
Beginning balance, shares at Dec. 31, 2018 6,295,113     2,470    
Net income     6,712     6,712
Other comprehensive income (loss)         5,460 5,460
Cash dividends declared     (3,019)     (3,019)
Compensation expense related to restricted stock   145       145
Acquisition of treasury stock       $ (374)   (374)
Acquisition of treasury stock, shares       11,337    
Stock options exercised   170       $ 170
Stock options exercised, shares 9,300         9,300
Compensation expense related to stock options   104       $ 104
Ending balance, shares at Jun. 30, 2019 6,304,413     13,807    
Ending balance at Jun. 30, 2019 $ 630 48,741 82,127 $ (455) 440 131,483
Beginning balance at Mar. 31, 2019 $ 630 48,559 80,115 $ (455) (2,077) 126,772
Beginning balance, shares at Mar. 31, 2019 6,301,263     13,807    
Net income     3,522     3,522
Other comprehensive income (loss)         2,517 2,517
Cash dividends declared     (1,510)     (1,510)
Compensation expense related to restricted stock   73       73
Acquisition of treasury stock
Stock options exercised   57       57
Stock options exercised, shares 3,150          
Compensation expense related to stock options   52       52
Ending balance, shares at Jun. 30, 2019 6,304,413     13,807    
Ending balance at Jun. 30, 2019 $ 630 $ 48,741 $ 82,127 $ (455) $ 440 $ 131,483

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical)
v3.19.2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Consolidated Statements of Changes in Stockholders' Equity [Abstract]        
Cash dividends declared $ 0.24 $ 0.22 $ 0.48 $ 0.44

Consolidated Statements of Cash Flows
v3.19.2
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 6,712 $ 6,642
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for loan losses 750 975
Depreciation 487 437
Amortization of intangible assets 56 68
Deferred income taxes (25) (202)
Net amortization of securities premiums and discounts 732 885
Net realized gain on sales of securities (64) (200)
Earnings and proceeds on life insurance policies (408) (552)
(Gain) loss on sales and write-downs of fixed assets and foreclosed real estate owned, net (65) 9
Net gain on sale of loans (110) 0
Mortgage loans originated for sale (2,191) 0
Proceeds from sale of loans originated for sale 2,255 0
Compensation expense related to stock options 104 118
Compensation expense related to restricted stock 145 102
(Increase) decrease in accrued interest receivable (203) 44
Increase in accrued interest payable 1,202 27
Other, net 234 853
Net cash provided by operating activities 9,611 9,206
CASH FLOWS FROM INVESTING ACTIVITIES    
Proceeds from sales 3,626 14,583
Proceeds from maturities and principal reductions on mortgage-backed securities 12,877 15,151
Purchases (5,066) (14,269)
Purchase of regulatory stock (1,666) (1,158)
Redemption of regulatory stock 2,437 2,350
Net increase in loans (39,398) (40,393)
Purchase of premises and equipment (757) (467)
Proceeds from sales of foreclosed real estate owned 205 467
Proceeds from sales of bank premises and equipment 246 0
Net cash used in investing activities (27,496) (23,736)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net increase in deposits 34,444 21,505
Net (decrease) increase in short-term borrowings (4,952) 795
Repayments of other borrowings (8,260) (5,662)
Stock options exercised 170 233
Acquisition of treasury stock (374) (179)
Cash dividends paid (3,019) (2,752)
Net cash provided by financing activities 18,009 13,940
Increase (decrease) in cash and cash equivalents 124 (590)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 18,348 16,697
CASH AND CASH EQUIVALENTS, END OF PERIOD 18,472 16,107
Supplemental Disclosures of Cash Flow Information    
Interest on deposits and borrowings 3,156 2,416
Income taxes paid, net of refunds 862 1,097
Supplemental Schedule of Noncash Investing Activities:    
Transfers of loans to foreclosed real estate and repossession of other assets 1,003 333
Dividends payable $ 1,510 $ 1,377

Basis of Presentation
v3.19.2
Basis of Presentation
6 Months Ended
Jun. 30, 2019
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., and WTRO Properties, Inc.  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 consolidated financial position and results of operations of the Company.  The operating results for the three month and six month periods ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other future interim period.




Basis of Presentation (Policy)
v3.19.2
Basis of Presentation (Policy)
6 Months Ended
Jun. 30, 2019
Basis of Presentation [Abstract]  
Basis of Presentation

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., and WTRO Properties, Inc.  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 consolidated financial position and results of operations of the Company.  The operating results for the three month and six month periods ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other future interim period.




Revenue Recognition
v3.19.2
Revenue Recognition
6 Months Ended
Jun. 30, 2019
Revenue Recognition [Abstract]  
Revenue Recognition

2.Revenue Recognition



Management has determined that the primary sources of revenue emanating from interest income on loans and investments along with noninterest revenue resulting from investment security gains, loan servicing, gains on the sale of loans, commitment fees, and fees from financial guarantees are not within the scope of ASC 606.  As a result, no changes were made during the period related to those sources of revenue.



The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30:





 

 

 

 

 

 



 

 

Three months ended



 

 

June 30,



 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 



 

 

 

 

 

 

Noninterest Income

 

 

2019

 

 

2018

   In-scope of Topic 606:

 

 

 

 

 

 

      Service charges on deposit accounts

 

$

66 

 

$

64 

      ATM fees

 

 

91 

 

 

95 

      Overdraft fees

 

 

343 

 

 

381 

      Safe deposit box rental

 

 

23 

 

 

23 

      Loan related service fees

 

 

94 

 

 

155 

      Debit card fees

 

 

371 

 

 

338 

      Fiduciary activities

 

 

145 

 

 

174 

      Commissions on mutual funds and annuities

 

 

26 

 

 

60 

      Other income

 

 

120 

 

 

137 

Noninterest Income (in-scope of Topic 606)

 

 

1,279 

 

 

1,427 



 

 

 

 

 

 

Out-of-scope of Topic 606:

 

 

 

 

 

 

      Net realized gains on sales of securities

 

 

64 

 

 

58 

      Loan servicing fees

 

 

24 

 

 

10 

      Gains on sales of loans

 

 

67 

 

 

 -

      Earnings on and proceeds from bank-owned life insurance

 

 

207 

 

 

279 

Noninterest Income (out-of-scope of Topic 606)

 

 

362 

 

 

347 

Total Noninterest Income

 

$

1,641 

 

$

1,774 







 

 

 

 

 

 



 

 

Six months ended



 

 

June 30,



 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 



 

 

 

 

 

 

Noninterest Income

 

 

2019

 

 

2018

   In-scope of Topic 606:

 

 

 

 

 

 

      Service charges on deposit accounts

 

$

133 

 

$

129 

      ATM fees

 

 

181 

 

 

191 

      Overdraft fees

 

 

694 

 

 

765 

      Safe deposit box rental

 

 

49 

 

 

53 

      Loan related service fees

 

 

223 

 

 

235 

      Debit card fees

 

 

697 

 

 

633 

      Fiduciary activities

 

 

287 

 

 

311 

      Commissions on mutual funds and annuities

 

 

81 

 

 

103 

      Other income

 

 

235 

 

 

276 

Noninterest Income (in-scope of Topic 606)

 

 

2,580 

 

 

2,696 



 

 

 

 

 

 

Out-of-scope of Topic 606:

 

 

 

 

 

 

      Net realized gains on sales of securities

 

 

64 

 

 

200 

      Loan servicing fees

 

 

39 

 

 

20 

      Gains on sales of loans

 

 

110 

 

 

 -

      Earnings on and proceeds from bank-owned life insurance

 

 

408 

 

 

552 

Noninterest Income (out-of-scope of Topic 606)

 

 

621 

 

 

772 

Total Noninterest Income

 

$

3,201 

 

$

3,468 







 

 




Revenue Recognition (Policy)
v3.19.2
Revenue Recognition (Policy)
6 Months Ended
Jun. 30, 2019
Revenue Recognition [Abstract]  
Revenue Recognition

Management has determined that the primary sources of revenue emanating from interest income on loans and investments along with noninterest revenue resulting from investment security gains, loan servicing, gains on the sale of loans, commitment fees, and fees from financial guarantees are not within the scope of ASC 606.  As a result, no changes were made during the period related to those sources of revenue.



The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30:





 

 

 

 

 

 



 

 

Three months ended



 

 

June 30,



 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 



 

 

 

 

 

 

Noninterest Income

 

 

2019

 

 

2018

   In-scope of Topic 606:

 

 

 

 

 

 

      Service charges on deposit accounts

 

$

66 

 

$

64 

      ATM fees

 

 

91 

 

 

95 

      Overdraft fees

 

 

343 

 

 

381 

      Safe deposit box rental

 

 

23 

 

 

23 

      Loan related service fees

 

 

94 

 

 

155 

      Debit card fees

 

 

371 

 

 

338 

      Fiduciary activities

 

 

145 

 

 

174 

      Commissions on mutual funds and annuities

 

 

26 

 

 

60 

      Other income

 

 

120 

 

 

137 

Noninterest Income (in-scope of Topic 606)

 

 

1,279 

 

 

1,427 



 

 

 

 

 

 

Out-of-scope of Topic 606:

 

 

 

 

 

 

      Net realized gains on sales of securities

 

 

64 

 

 

58 

      Loan servicing fees

 

 

24 

 

 

10 

      Gains on sales of loans

 

 

67 

 

 

 -

      Earnings on and proceeds from bank-owned life insurance

 

 

207 

 

 

279 

Noninterest Income (out-of-scope of Topic 606)

 

 

362 

 

 

347 

Total Noninterest Income

 

$

1,641 

 

$

1,774 







 

 

 

 

 

 



 

 

Six months ended



 

 

June 30,



 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 



 

 

 

 

 

 

Noninterest Income

 

 

2019

 

 

2018

   In-scope of Topic 606:

 

 

 

 

 

 

      Service charges on deposit accounts

 

$

133 

 

$

129 

      ATM fees

 

 

181 

 

 

191 

      Overdraft fees

 

 

694 

 

 

765 

      Safe deposit box rental

 

 

49 

 

 

53 

      Loan related service fees

 

 

223 

 

 

235 

      Debit card fees

 

 

697 

 

 

633 

      Fiduciary activities

 

 

287 

 

 

311 

      Commissions on mutual funds and annuities

 

 

81 

 

 

103 

      Other income

 

 

235 

 

 

276 

Noninterest Income (in-scope of Topic 606)

 

 

2,580 

 

 

2,696 



 

 

 

 

 

 

Out-of-scope of Topic 606:

 

 

 

 

 

 

      Net realized gains on sales of securities

 

 

64 

 

 

200 

      Loan servicing fees

 

 

39 

 

 

20 

      Gains on sales of loans

 

 

110 

 

 

 -

      Earnings on and proceeds from bank-owned life insurance

 

 

408 

 

 

552 

Noninterest Income (out-of-scope of Topic 606)

 

 

621 

 

 

772 

Total Noninterest Income

 

$

3,201 

 

$

3,468 







 

 








Revenue Recognition (Tables)
v3.19.2
Revenue Recognition (Tables)
6 Months Ended
Jun. 30, 2019
Revenue Recognition [Abstract]  
Noninterest Income







 

 

 

 

 

 



 

 

Three months ended



 

 

June 30,



 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 



 

 

 

 

 

 

Noninterest Income

 

 

2019

 

 

2018

   In-scope of Topic 606:

 

 

 

 

 

 

      Service charges on deposit accounts

 

$

66 

 

$

64 

      ATM fees

 

 

91 

 

 

95 

      Overdraft fees

 

 

343 

 

 

381 

      Safe deposit box rental

 

 

23 

 

 

23 

      Loan related service fees

 

 

94 

 

 

155 

      Debit card fees

 

 

371 

 

 

338 

      Fiduciary activities

 

 

145 

 

 

174 

      Commissions on mutual funds and annuities

 

 

26 

 

 

60 

      Other income

 

 

120 

 

 

137 

Noninterest Income (in-scope of Topic 606)

 

 

1,279 

 

 

1,427 



 

 

 

 

 

 

Out-of-scope of Topic 606:

 

 

 

 

 

 

      Net realized gains on sales of securities

 

 

64 

 

 

58 

      Loan servicing fees

 

 

24 

 

 

10 

      Gains on sales of loans

 

 

67 

 

 

 -

      Earnings on and proceeds from bank-owned life insurance

 

 

207 

 

 

279 

Noninterest Income (out-of-scope of Topic 606)

 

 

362 

 

 

347 

Total Noninterest Income

 

$

1,641 

 

$

1,774 







 

 

 

 

 

 



 

 

Six months ended



 

 

June 30,



 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 



 

 

 

 

 

 

Noninterest Income

 

 

2019

 

 

2018

   In-scope of Topic 606:

 

 

 

 

 

 

      Service charges on deposit accounts

 

$

133 

 

$

129 

      ATM fees

 

 

181 

 

 

191 

      Overdraft fees

 

 

694 

 

 

765 

      Safe deposit box rental

 

 

49 

 

 

53 

      Loan related service fees

 

 

223 

 

 

235 

      Debit card fees

 

 

697 

 

 

633 

      Fiduciary activities

 

 

287 

 

 

311 

      Commissions on mutual funds and annuities

 

 

81 

 

 

103 

      Other income

 

 

235 

 

 

276 

Noninterest Income (in-scope of Topic 606)

 

 

2,580 

 

 

2,696 



 

 

 

 

 

 

Out-of-scope of Topic 606:

 

 

 

 

 

 

      Net realized gains on sales of securities

 

 

64 

 

 

200 

      Loan servicing fees

 

 

39 

 

 

20 

      Gains on sales of loans

 

 

110 

 

 

 -

      Earnings on and proceeds from bank-owned life insurance

 

 

408 

 

 

552 

Noninterest Income (out-of-scope of Topic 606)

 

 

621 

 

 

772 

Total Noninterest Income

 

$

3,201 

 

$

3,468 







 

 




Revenue Recognition (Noninterest Income) (Details)
v3.19.2
Revenue Recognition (Noninterest Income) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Noninterest Income (in scope of Topic 606) $ 1,279 $ 1,427 $ 2,580 $ 2,696
Net realized gains on sales of securities 64 58 64 200
Loan servicing fees 24 10 39 20
Gain on sales of loans 67   110  
Earnings on and proceeds from bank-owned life insurance 207 279 408 552
Noninterest Income (out-of-scope of Topic 606) 362 347 621 772
Total Other Income 1,641 1,774 3,201 3,468
Service Charges On Deposit Accounts [Member]        
Noninterest Income (in scope of Topic 606) 66 64 133 129
ATM Fees [Member]        
Noninterest Income (in scope of Topic 606) 91 95 181 191
Overdraft Fees [Member]        
Noninterest Income (in scope of Topic 606) 343 381 694 765
Safe Deposit Box Rental [Member]        
Noninterest Income (in scope of Topic 606) 23 23 49 53
Loan Related Service Fees [Member]        
Noninterest Income (in scope of Topic 606) 94 155 223 235
Debit Card [Member]        
Noninterest Income (in scope of Topic 606) 371 338 697 633
Fiduciary Activities [Member]        
Noninterest Income (in scope of Topic 606) 145 174 287 311
Commissions On Mutual Funds And Annuities [Member]        
Noninterest Income (in scope of Topic 606) 26 60 81 103
Other Income [Member]        
Noninterest Income (in scope of Topic 606) $ 120 $ 137 $ 235 $ 276

Earnings Per Share
v3.19.2
Earnings Per Share
6 Months Ended
Jun. 30, 2019
Earning Per Share [Abstract]  
Earnings Per Share

3.         Earnings Per Share

Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period.  Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.  Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock, and are determined using the treasury stock method.



The following table sets forth the weighted average shares outstanding used in the computations of basic and diluted earnings per share. 









 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

(in thousands)

 

Three Months Ended

 

Six Months Ended



 

June 30,

 

June 30,



 

2019

 

2018

 

2019

 

2018

Weighted average shares outstanding

 

6,290 

 

6,256 

 

6,292 

 

6,256 

Less: Unvested restricted shares

 

(35)

 

(31)

 

(35)

 

(31)

Basic EPS weighted average shares outstanding

 

6,255 

 

6,225 

 

6,257 

 

6,225 



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Basic EPS weighted average shares outstanding

 

6,255 

 

6,225 

 

6,257 

 

6,225 

Add:  Dilutive effect of stock options and restricted shares

 

60 

 

50 

 

62 

 

51 

Diluted EPS weighted average shares outstanding

 

6,315 

 

6,275 

 

6,319 

 

6,276 



For the three and six month periods ending June 30, 2019, there were no stock options that would be anti-dilutive to the earnings per share calculations based upon the closing price of Norwood common stock of $34.81 per share on June 30, 2019.





For the three and six month periods ending June 30, 2018, there were no stock options that would be anti-dilutive to the earnings per share calculations based upon the closing price of Norwood common stock of $36.02 per share on June 30, 2018.


Earnings Per Share (Policy)
v3.19.2
Earnings Per Share (Policy)
6 Months Ended
Jun. 30, 2019
Earning Per Share [Abstract]  
Earnings Per Share

Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period.  Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.  Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock, and are determined using the treasury stock method.




Earnings Per Share (Tables)
v3.19.2
Earnings Per Share (Tables)
6 Months Ended
Jun. 30, 2019
Earning Per Share [Abstract]  
Schedule Of Weighted Average Shares Outstanding Used In The Computations Of Basic And Diluted Earnings Per Share



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

(in thousands)

 

Three Months Ended

 

Six Months Ended



 

June 30,

 

June 30,



 

2019

 

2018

 

2019

 

2018

Weighted average shares outstanding

 

6,290 

 

6,256 

 

6,292 

 

6,256 

Less: Unvested restricted shares

 

(35)

 

(31)

 

(35)

 

(31)

Basic EPS weighted average shares outstanding

 

6,255 

 

6,225 

 

6,257 

 

6,225 



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Basic EPS weighted average shares outstanding

 

6,255 

 

6,225 

 

6,257 

 

6,225 

Add:  Dilutive effect of stock options and restricted shares

 

60 

 

50 

 

62 

 

51 

Diluted EPS weighted average shares outstanding

 

6,315 

 

6,275 

 

6,319 

 

6,276 




Earnings Per Share (Narrative) (Details)
v3.19.2
Earnings Per Share (Narrative) (Details) - $ / shares
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Earning Per Share [Abstract]          
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 0 0 0 0  
Share price $ 34.81 $ 36.02 $ 34.81 $ 36.02 $ 33.00

Earnings Per Share (Schedule of Weighted Average Shares Outstanding Used in the Computations of Basic and Diluted Earnings Per Share) (Details)
v3.19.2
Earnings Per Share (Schedule of Weighted Average Shares Outstanding Used in the Computations of Basic and Diluted Earnings Per Share) (Details) - shares
shares in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Earning Per Share [Abstract]        
Weighted average shares outstanding 6,290 6,256 6,292 6,256
Less: Unvested restricted shares (35) (31) (35) (31)
Basic EPS weighted average shares outstanding 6,255 6,225 6,257 6,225
Add: Dilutive effect of stock options and restricted shares 60 50 62 51
Diluted EPS weighted average shares outstanding 6,315 6,275 6,319 6,276

Stock-Based Compensation
v3.19.2
Stock-Based Compensation
6 Months Ended
Jun. 30, 2019
Stock Based Compensation [Abstract]  
Stock-Based Compensation

4.         Stock-Based Compensation



No awards were granted during the six-month period ending June 30, 2019. As of June 30, 2019, there was $104,000 of total unrecognized compensation cost related to non-vested options granted in 2018 under the 2014 Equity Incentive Plan, which will be fully amortized by December 31, 2019. Compensation costs related to stock options amounted to $104,000 and $118,000 during the six-month periods ended June 30, 2019 and 2018, respectively.



A summary of the Company’s stock option activity for the six-month period ended June 30, 2019 is as follows:





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

Weighted

 

 

 

 

 



 

 

Average Exercise

 

Weighted Average

 

Aggregate



 

 

Price

 

Remaining

 

Intrinsic Value



Options

 

Per Share

 

Contractual Term

 

($000)



 

 

 

 

 

 

 

 

 

 

Outstanding at January 1, 2019

208,700 

 

$

22.54 

 

5.9 

Yrs.

 

$

2,183 

Granted

 -

 

 

 -

 

 -

 

 

 

 -

Exercised

(9,300)

 

 

18.31 

 

4.1 

Yrs.

 

 

119 

Forfeited

 -

 

 

 -

 

 -

 

 

 

 -

Outstanding at June 30, 2019

199,400 

 

$

22.74 

 

5.5 

Yrs.

 

$

2,407 



 

 

 

 

 

 

 

 

 

 

Exercisable at June 30, 2019

170,500 

 

$

21.11 

 

4.8 

Yrs.

 

$

2,335 



Intrinsic value represents the amount by which the market price of the stock on the measurement date exceeded the exercise price of the option.  The market price was $34.81 per share as of June 30, 2019 and $33.00 per share as of December 31, 2018.



A summary of the Company’s restricted stock activity for the six-month periods ended June 30, 2019 and 2018 is as follows:







 

 

 

 

 

 

 

 

 



2019

 

2018



 

 

 

Weighted-Average

 

 

 

 

Weighted-Average



Number of

 

 

Grant Date

 

Number of

 

 

Grant Date



Restricted Stock

 

 

Fair Value

 

Restricted Stock

 

 

Fair Value

Non-vested, January 1,

34,615