[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)
|
Pennsylvania
|
23-2828306
|
|
(State or other jurisdiction of
|
(I.R.S. employer identification no.)
|
|
incorporation or organization)
|
717 Main Street, Honesdale, Pennsylvania
|
18431
|
||
(Address of principal executive offices)
|
(Zip Code)
|
Registrant's telephone number, including area code
|
(570) 253-1455
|
N/A
|
Former name, former address and former fiscal year, if changed since last report.
|
Class
|
Outstanding as of October 31, 2016
|
|
Common stock, par value $0.10 per share
|
4,125,576
|
Page
Number
|
||
PART I -
|
CONSOLIDATED FINANCIAL INFORMATION OF NORWOOD
FINANCIAL CORP.
|
|
Item 1.
|
Financial Statements (unaudited)
|
3
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
36
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
50
|
Item 4.
|
Controls and Procedures
|
52
|
PART II -
|
OTHER INFORMATION
|
|
Item 1.
|
Legal Proceedings
|
52
|
Item 1A.
|
Risk Factors
|
52
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
52
|
Item 3.
|
Defaults Upon Senior Securities
|
52
|
Item 4.
|
Mine Safety Disclosures
|
52
|
Item 5.
|
Other Information
|
52
|
Item 6.
|
Exhibits
|
53
|
Signatures
|
55
|
September 30,
|
December 31,
|
||||
2016
|
2015
|
||||
ASSETS
|
|||||
Cash and due from banks
|
$
|
19,404
|
$
|
9,744
|
|
Interest bearing deposits with banks
|
13,729
|
266
|
|||
Cash and cash equivalents
|
33,133
|
10,010
|
|||
Securities available for sale, at fair value
|
310,126
|
138,851
|
|||
Loans receivable
|
706,199
|
559,925
|
|||
Less: Allowance for loan losses
|
6,164
|
7,298
|
|||
Net loans receivable
|
700,035
|
552,627
|
|||
Regulatory stock, at cost
|
2,351
|
3,412
|
|||
Bank premises and equipment, net
|
13,617
|
6,472
|
|||
Bank owned life insurance
|
35,889
|
18,820
|
|||
Accrued interest receivable
|
3,541
|
2,363
|
|||
Foreclosed real estate owned
|
5,386
|
2,847
|
|||
Goodwill
|
11,679
|
9,715
|
|||
Other intangibles
|
652
|
285
|
|||
Deferred tax asset
|
5,560
|
3,669
|
|||
Other assets
|
3,088
|
1,434
|
|||
TOTAL ASSETS
|
$
|
1,125,057
|
$
|
750,505
|
|
LIABILITIES
|
|||||
Deposits:
|
|||||
Non-interest bearing demand
|
$
|
200,481
|
$
|
107,814
|
|
Interest-bearing
|
721,763
|
443,095
|
|||
Total deposits
|
922,244
|
550,909
|
|||
Short-term borrowings
|
33,156
|
53,235
|
|||
Other borrowings
|
34,294
|
41,126
|
|||
Junior subordinated debentures
|
8,248
|
-
|
|||
Accrued interest payable
|
1,040
|
957
|
|||
Other liabilities
|
10,375
|
3,280
|
|||
TOTAL LIABILITIES
|
1,009,357
|
649,507
|
|||
STOCKHOLDERS' EQUITY
|
|||||
Common stock, $.10 par value per share,
|
|||||
authorized 10,000,000 shares; issued 2016: 4,156,273 shares, 2015: 3,724,668 shares
|
416
|
373
|
|||
Surplus
|
47,576
|
35,351
|
|||
Retained earnings
|
66,210
|
65,412
|
|||
Treasury stock at cost: 2016: 32,797 shares,
|
|||||
2015: 23,311 shares
|
(908)
|
(626)
|
|||
Accumulated other comprehensive income
|
2,406
|
488
|
|||
TOTAL STOCKHOLDERS' EQUITY
|
115,700
|
100,998
|
|||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
1,125,057
|
$
|
750,505
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
September 30,
|
September 30,
|
||||||||||
2016
|
2015
|
2016
|
2015
|
||||||||
INTEREST INCOME
|
|||||||||||
Loans receivable, including fees
|
$
|
7,267
|
$
|
5,958
|
$
|
19,752
|
$
|
17,943
|
|||
Securities
|
1,239
|
911
|
3,008
|
2,884
|
|||||||
Other
|
22
|
3
|
28
|
15
|
|||||||
Total interest income
|
8,528
|
6,872
|
22,788
|
20,842
|
|||||||
INTEREST EXPENSE
|
|||||||||||
Deposits
|
677
|
611
|
1,838
|
1,833
|
|||||||
Short-term borrowings
|
65
|
19
|
142
|
47
|
|||||||
Other borrowings
|
216
|
189
|
669
|
553
|
|||||||
Total interest expense
|
958
|
819
|
2,649
|
2,433
|
|||||||
NET INTEREST INCOME
|
7,570
|
6,053
|
20,139
|
18,409
|
|||||||
PROVISION FOR LOAN LOSSES
|
450
|
720
|
1,600
|
1,760
|
|||||||
NET INTEREST INCOME AFTER
|
|||||||||||
PROVISION FOR LOAN LOSSES
|
7,120
|
5,333
|
18,539
|
16,649
|
|||||||
OTHER INCOME
|
|||||||||||
Service charges and fees
|
829
|
592
|
2,000
|
1,776
|
|||||||
Income from fiduciary activities
|
126
|
126
|
342
|
341
|
|||||||
Net realized gains on sales of securities
|
-
|
63
|
269
|
508
|
|||||||
Gains on sale of loans and servicing rights, net
|
-
|
16
|
54
|
56
|
|||||||
Earnings and proceeds on bank owned life insurance
|
283
|
167
|
616
|
497
|
|||||||
Other
|
161
|
107
|
408
|
305
|
|||||||
Total other income
|
1,399
|
1,071
|
3,689
|
3,483
|
|||||||
OTHER EXPENSES
|
|||||||||||
Salaries and employee benefits
|
3,070
|
2,175
|
7,620
|
6,383
|
|||||||
Occupancy, furniture & equipment, net
|
755
|
473
|
1,736
|
1,571
|
|||||||
Data processing
|
423
|
247
|
949
|
682
|
|||||||
Taxes, other than income
|
205
|
175
|
535
|
525
|
|||||||
Professional fees
|
185
|
140
|
516
|
447
|
|||||||
Federal Deposit Insurance Corporation insurance
|
170
|
119
|
402
|
278
|
|||||||
Foreclosed real estate owned
|
119
|
47
|
582
|
436
|
|||||||
Amortization of intangibles
|
34
|
24
|
81
|
80
|
|||||||
Merger related
|
1,659
|
-
|
1,664
|
-
|
|||||||
Other
|
1,059
|
670
|
2,471
|
2,023
|
|||||||
Total other expenses
|
7,679
|
4,070
|
16,556
|
12,425
|
|||||||
INCOME BEFORE INCOME TAXES
|
840
|
2,334
|
5,672
|
7,707
|
|||||||
INCOME TAX EXPENSE
|
228
|
557
|
1,307
|
1,926
|
|||||||
NET INCOME
|
$
|
612
|
$
|
1,777
|
$
|
4,365
|
$
|
5,781
|
|||
BASIC EARNINGS PER SHARE
|
$
|
0.15
|
$
|
0.48
|
$
|
1.16
|
$
|
1.57
|
|||
DILUTED EARNINGS PER SHARE
|
$
|
0.15
|
$
|
0.48
|
$
|
1.15
|
$
|
1.57
|
Three Months Ended
|
|||||
September 30,
|
|||||
2016
|
2015
|
||||
Net income
|
$
|
612
|
$
|
1,777
|
|
Other comprehensive income (loss):
|
|||||
Investment securities available for sale:
|
|||||
Unrealized holding gain (loss)
|
(653)
|
1,938
|
|||
Tax effect
|
221
|
(654)
|
|||
Reclassification of gains recognized in net income
|
-
|
(63)
|
|||
Tax effect
|
-
|
22
|
|||
Other comprehensive income (loss)
|
(432)
|
1,243
|
|||
Comprehensive Income
|
$
|
180
|
$
|
3,020
|
Nine Months Ended
|
|||||
September 30,
|
|||||
2016
|
2015
|
||||
Net income
|
$
|
4,365
|
$
|
5,781
|
|
Other comprehensive income:
|
|||||
Investment securities available for sale:
|
|||||
Unrealized holding gain
|
3,176
|
890
|
|||
Tax effect
|
(1,080)
|
(296)
|
|||
Reclassification of gains recognized in net income
|
(269)
|
(508)
|
|||
Tax effect
|
91
|
173
|
|||
Other comprehensive income
|
1,918
|
259
|
|||
Comprehensive Income
|
$
|
6,283
|
$
|
6,040
|
Accumulated
|
||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||
Common Stock
|
Retained
|
Treasury Stock
|
Comprehensive
|
|||||||||||||||||||||
Shares
|
Amount
|
Surplus
|
Earnings
|
Shares
|
Amount
|
Income
|
Total
|
|||||||||||||||||
Balance, December 31, 2015
|
3,724,668
|
$
|
373
|
$
|
35,351
|
$
|
65,412
|
23,311
|
$
|
(626)
|
$
|
488
|
$
|
100,998
|
||||||||||
Net Income
|
4,365
|
4,365
|
||||||||||||||||||||||
Other comprehensive income
|
1,918
|
1,918
|
||||||||||||||||||||||
Cash dividends declared ($.93 per share)
|
(3,567)
|
(3,567)
|
||||||||||||||||||||||
Compensation expense related to restricted stock
|
67
|
67
|
||||||||||||||||||||||
Acquisition of treasury stock
|
15,538
|
(447)
|
(447)
|
|||||||||||||||||||||
Stock options exercised
|
(5)
|
(6,052)
|
165
|
160
|
||||||||||||||||||||
Tax benefit of stock options
|
3
|
3
|
||||||||||||||||||||||
Compensation expense related to stock options
|
53
|
53
|
||||||||||||||||||||||
Delaware Bancshares acquisition
|
431,605
|
43
|
12,107
|
12,150
|
||||||||||||||||||||
Balance, September 30, 2016
|
4,156,273
|
$
|
416
|
$
|
47,576
|
$
|
66,210
|
32,797
|
$
|
(908)
|
$
|
2,406
|
$
|
115,700
|
(dollars in thousands)
|
|||||
Nine Months Ended September 30,
|
|||||
2016
|
2015
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|||||
Net Income
|
$
|
4,365
|
$
|
5,781
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||
Provision for loan losses
|
1,600
|
1,760
|
|||
Depreciation
|
484
|
414
|
|||
Amortization of intangible assets
|
81
|
80
|
|||
Deferred income taxes
|
155
|
184
|
|||
Net amortization of securities premiums and discounts
|
1,039
|
711
|
|||
Net realized gain on sales of securities
|
(269)
|
(508)
|
|||
Earnings and proceeds on bank owned life insurance
|
(616)
|
(497)
|
|||
Loss on sales of fixed assets and foreclosed real estate owned
|
2
|
271
|
|||
Gain on sale of mortgage loans
|
(54)
|
(56)
|
|||
Mortgage loans originated for sale
|
(1,685)
|
(2,605)
|
|||
Proceeds from sale of mortgage loans originated for sale
|
1,739
|
2,661
|
|||
Compensation expense related to stock options
|
53
|
49
|
|||
Compensation expense related to restricted stock
|
67
|
49
|
|||
Decrease (increase) in accrued interest receivable and other assets
|
1,894
|
(609)
|
|||
(Decrease) increase in accrued interest payable and other liabilities
|
(920)
|
531
|
|||
Net cash provided by operating activities
|
7,935
|
8,216
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|||||
Securities available for sale:
|
|||||
Proceeds from sales
|
101,804
|
28,850
|
|||
Proceeds from maturities and principal reductions on mortgage-backed securities
|
18,083
|
19,408
|
|||
Purchases
|
(80,538)
|
(44,987)
|
|||
Purchase of regulatory stock
|
(2,675)
|
(1,830)
|
|||
Redemption of regulatory stock
|
4,015
|
1,056
|
|||
Net increase in loans
|
(35,325)
|
(44,592)
|
|||
Proceeds from bank-owned life insurance
|
205
|
-
|
|||
Purchase of bank-owned life insurance
|
(2,000)
|
-
|
|||
Purchase of premises and equipment
|
(337)
|
(184)
|
|||
Proceeds from sales of fixed assets and foreclosed real estate owned
|
387
|
2,378
|
|||
Acquisition, net of cash and cash equivalents acquired
|
11,112
|
-
|
|||
Net cash provided by (used in) investing activities
|
14,731
|
(39,901)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|||||
Net increase in deposits
|
44,072
|
11,409
|
|||
Net (decrease) increase in short-term borrowings
|
(21,456)
|
15,851
|
|||
Repayments of other borrowings
|
(18,439)
|
(9,038)
|
|||
Proceeds from other borrowings
|
-
|
16,000
|
|||
Stock options exercised
|
160
|
310
|
|||
Tax benefit of stock options exercised
|
3
|
14
|
|||
Purchase of treasury stock
|
(447)
|
(135)
|
|||
Cash dividends paid
|
(3,436)
|
(3,386)
|
|||
Net cash provided by financing activities
|
457
|
31,025
|
|||
Increase (decrease) in cash and cash equivalents
|
23,123
|
(660)
|
|||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
10,010
|
12,376
|
|||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
33,133
|
$
|
11,716
|
(dollars in thousands)
|
|||||
Nine Months Ended September 30,
|
|||||
2016
|
2015
|
||||
Supplemental Disclosures of Cash Flow Information
|
|||||
Cash payments for:
|
|||||
Interest on deposits and borrowings
|
$
|
2,566
|
$
|
2,403
|
|
Income taxes paid, net of refunds
|
$
|
1,135
|
$
|
1,881
|
|
Supplemental Schedule of Noncash Investing Activities
|
|||||
Transfers of loans to foreclosed real estate and repossession of other assets
|
$
|
2,953
|
$
|
290
|
|
Cash dividends declared
|
$
|
1,278
|
$
|
1,142
|
|
Merger with Delaware Bancshares, Inc.
|
|||||
Noncash assets acquired:
|
|||||
Securities available-for-sale
|
$
|
208,488
|
|||
Regulatory stock
|
279
|
||||
Loans
|
116,674
|
||||
Premises and equipment, net
|
7,292
|
||||
Accrued interest receivable
|
1,626
|
||||
Bank-owned life insurance
|
14,762
|
||||
Core deposit intangible
|
449
|
||||
Deferred tax assets
|
3,034
|
||||
Other assets
|
2,934
|
||||
Goodwill
|
1,964
|
||||
$
|
357,502
|
||||
Liabilities assumed:
|
|||||
Time deposits
|
$
|
71,342
|
|||
Deposits other than time deposits
|
255,921
|
||||
Borrowings
|
21,232
|
||||
Accrued interest payable
|
95
|
||||
Other liabilities
|
7,873
|
||||
356,463
|
|||||
Net Noncash Assets Acquired
|
1,039
|
||||
Cash Acquired
|
$
|
14,977
|
Three Months Ended
|
Nine Months Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2016
|
2015
|
2016
|
2015
|
|||||
Weighted average shares outstanding
|
3,978
|
3,683
|
3,790
|
3,681
|
||||
Less: Unvested restricted shares
|
(14)
|
(9)
|
(14)
|
(9)
|
||||
Basic EPS weighted average shares outstanding
|
3,964
|
3,674
|
3,776
|
3,672
|
||||
Basic EPS weighted average shares outstanding
|
3,964
|
3,683
|
3,776
|
3,681
|
||||
Add: Dilutive effect of stock options
|
9
|
9
|
9
|
10
|
||||
Diluted EPS weighted average shares outstanding
|
3,973
|
3,692
|
3,785
|
3,691
|
||||
Weighted
|
||||||||||
Average Exercise
|
Weighted Average
|
Aggregate
|
||||||||
Price
|
Remaining
|
Intrinsic Value
|
||||||||
Options
|
Per Share
|
Contractual Term
|
($000)
|
|||||||
Outstanding at January 1, 2016
|
194,521
|
$
|
26.91
|
5.2
|
Yrs.
|
$
|
363
|
|||
Granted
|
-
|
-
|
-
|
-
|
||||||
Exercised
|
(6,052)
|
26.37
|
4.1
|
-
|
||||||
Forfeited
|
(16,019)
|
27.71
|
0.5
|
-
|
||||||
Outstanding at September 30, 2016
|
172,450
|
$
|
26.85
|
4.9
|
Yrs.
|
$
|
383
|
|||
Exercisable at September 30, 2016
|
157,950
|
$
|
26.70
|
4.5
|
Yrs.
|
$
|
375
|
Weighted-Average
|
||||
Number of
|
Grant Date
|
|||
Restricted Stock
|
Fair Value
|
|||
Outstanding, January 1,
|
13,810
|
$
|
28.82
|
|
Granted
|
-
|
-
|
||
Vested
|
-
|
-
|
||
Forfeited
|
-
|
-
|
||
Non-vested at September 30,
|
13,810
|
$
|
28.82
|
Unrealized gains (losses) on
|
||
available for sale
|
||
securities (a)
|
||
Balance as of June 30, 2016
|
$
|
2,838
|
Other comprehensive loss before reclassification
|
(432)
|
|
Amount reclassified from accumulated other comprehensive income
|
-
|
|
Total other comprehensive loss
|
(432)
|
|
Balance as of September 30, 2016
|
$
|
2,406
|
Unrealized gains (losses) on
|
||
available for sale
|
||
securities (a)
|
||
Balance as of June 30, 2015
|
$
|
(522)
|
Other comprehensive income before reclassification
|
1,284
|
|
Amount reclassified from accumulated other comprehensive income
|
(41)
|
|
Total other comprehensive income
|
1,243
|
|
Balance as of September 30, 2015
|
$
|
721
|
Unrealized gains (losses) on
|
||
available for sale
|
||
securities (a)
|
||
Balance as of December 31, 2015
|
$
|
488
|
Other comprehensive income before reclassification
|
2,096
|
|
Amount reclassified from accumulated other comprehensive income
|
(178)
|
|
Total other comprehensive income
|
1,918
|
|
Balance as of September 30, 2016
|
$
|
2,406
|
Unrealized gains (losses) on
|
||
available for sale
|
||
securities (a)
|
||
Balance as of December 31, 2014
|
$
|
462
|
Other comprehensive income before reclassification
|
594
|
|
Amount reclassified from accumulated other comprehensive income
|
(335)
|
|
Total other comprehensive income
|
259
|
|
Balance as of September 30, 2015
|
$
|
721
|
Amount Reclassified
|
|||||||||
From Accumulated
|
Affected Line Item in
|
||||||||
Other
|
Consolidated
|
||||||||
Comprehensive
|
Statements
|
||||||||
Details about other comprehensive income
|
Income (a)
|
of Income
|
|||||||
Three months ended
|
|||||||||
September 30,
|
|||||||||
2016
|
2015
|
||||||||
Unrealized gains on available for sale securities
|
$
|
-
|
$
|
63
|
Net realized gains on sales of securities
|
||||
-
|
(22)
|
Income tax expense
|
|||||||
$
|
-
|
$
|
41
|
||||||
Nine months ended
|
|||||||||
September 30,
|
|||||||||
2016
|
2015
|
||||||||
Unrealized gains on available for sale securities
|
$
|
269
|
$
|
508
|
Net realized gains on sales of securities
|
||||
(91)
|
(173)
|
Income tax expense
|
|||||||
$
|
178
|
$
|
335
|
(in thousands)
|
September 30,
|
||||
2016
|
2015
|
||||
Commitments to grant loans
|
$
|
21,764
|
$
|
21,279
|
|
Unfunded commitments under lines of credit
|
62,599
|
51,489
|
|||
Standby letters of credit
|
5,642
|
5,504
|
|||
$
|
90,005
|
$
|
78,272
|
September 30, 2016
|
||||||||||||
Gross
|
Gross
|
|||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||
(In Thousands)
|
||||||||||||
Available for Sale:
|
||||||||||||
U.S. Treasury securities
|
$
|
2,006
|
$
|
-
|
$
|
(2)
|
$
|
2,004
|
||||
U.S. Government agencies
|
2,001
|
-
|
-
|
2,001
|
||||||||
States and political subdivisions
|
127,694
|
3,050
|
(172)
|
130,572
|
||||||||
Corporate obligations
|
10,301
|
101
|
(17)
|
10,385
|
||||||||
Mortgage-backed securities-
|
||||||||||||
government sponsored entities
|
164,158
|
845
|
(223)
|
164,780
|
||||||||
Total debt securities
|
306,160
|
3,996
|
(414)
|
309,742
|
||||||||
Equity securities-financial services
|
320
|
64
|
-
|
384
|
||||||||
$
|
306,480
|
$
|
4,060
|
$
|
(414)
|
$
|
310,126
|
|||||
December 31, 2015
|
||||||||||||
Gross
|
Gross
|
|||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||
(In Thousands)
|
||||||||||||
Available for Sale:
|
||||||||||||
U.S. Government agencies
|
$
|
9,275
|
$
|
2
|
$
|
(108)
|
$
|
9,169
|
||||
States and political subdivisions
|
59,120
|
1,747
|
(112)
|
60,755
|
||||||||
Corporate obligations
|
4,933
|
45
|
(4)
|
4,974
|
||||||||
Mortgage-backed securities-government
|
||||||||||||
sponsored entities
|
64,491
|
23
|
(945)
|
63,569
|
||||||||
Total debt securities
|
137,819
|
1,817
|
(1,169)
|
138,467
|
||||||||
Equity securities-financial services
|
292
|
92
|
-
|
384
|
||||||||
$
|
138,111
|
$
|
1,909
|
$
|
(1,169)
|
$
|
138,851
|
|||||
September 30, 2016
|
|||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
|||||||||||||||
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
||||||||||||
U.S. Treasury securities
|
$
|
2,004
|
$
|
(2)
|
$
|
-
|
$
|
-
|
$
|
2,004
|
$
|
(2)
|
|||||
States and political subdivisions
|
33,918
|
(170)
|
210
|
(2)
|
34,128
|
(172)
|
|||||||||||
Corporate obligations
|
3,312
|
(17)
|
-
|
-
|
3,312
|
(17)
|
|||||||||||
Mortgage-backed securities-government sponsored entities
|
49,341
|
(156)
|
9,885
|
(67)
|
59,226
|
(223)
|
|||||||||||
$
|
88,575
|
$
|
(345)
|
$
|
10,095
|
$
|
(69)
|
$
|
98,670
|
$
|
(414)
|
December 31, 2015
|
|||||||||||||||||
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
|
$
|
6,058
|
$
|
(71)
|
$
|
2,109
|
$
|
(37)
|
$
|
8,167
|
$
|
(108)
|
|||||
States and political subdivisions
|
9,086
|
(99)
|
1,417
|
(13)
|
10,503
|
(112)
|
|||||||||||
Corporate obligations
|
2,221
|
(4)
|
-
|
-
|
2,221
|
(4)
|
|||||||||||
Mortgage-backed securities-government sponsored entities
|
40,300
|
(432)
|
16,595
|
(513)
|
56,895
|
(945)
|
|||||||||||
$
|
57,665
|
$
|
(606)
|
$
|
20,121
|
$
|
(563)
|
$
|
77,786
|
$
|
(1,169)
|
Available for Sale
|
||||||
Amortized Cost
|
Fair Value
|
|||||
(In Thousands)
|
||||||
Due in one year or less
|
$
|
983
|
$
|
991
|
||
Due after one year through five years
|
20,978
|
21,097
|
||||
Due after five years through ten years
|
53,744
|
54,044
|
||||
Due after ten years
|
66,297
|
68,830
|
||||
Mortgage-backed securities-government sponsored agencies
|
164,158
|
164,780
|
||||
$
|
306,160
|
$
|
309,742
|
Three Months
|
Nine Months
|
|||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||
Gross realized gains
|
$
|
-
|
$
|
63
|
$
|
269
|
$
|
508
|
||||
Gross realized losses
|
-
|
-
|
-
|
-
|
||||||||
Net realized gain
|
$
|
-
|
$
|
63
|
$
|
269
|
$
|
508
|
||||
Proceeds from sales of securities
|
$
|
70,028
|
$
|
5,466
|
$
|
101,804
|
$
|
28,850
|
Types of loans
|
|||||||||||
(dollars in thousands)
|
|||||||||||
September 30, 2016
|
December 31, 2015
|
||||||||||
Real Estate Loans:
|
|||||||||||
Residential
|
$
|
237,897
|
33.7
|
%
|
$
|
161,820
|
28.9
|
%
|
|||
Commercial
|
315,270
|
44.6
|
279,123
|
49.8
|
|||||||
Construction
|
20,056
|
2.8
|
18,987
|
3.4
|
|||||||
Commercial, financial and agricultural
|
85,145
|
12.1
|
71,090
|
12.7
|
|||||||
Consumer loans to individuals
|
48,225
|
6.8
|
29,231
|
5.2
|
|||||||
Total loans
|
706,593
|
100.0
|
%
|
560,251
|
100.0
|
%
|
|||||
Deferred fees, net
|
(394)
|
(326)
|
|||||||||
Total loans receivable
|
706,199
|
559,925
|
|||||||||
Allowance for loan losses
|
(6,164)
|
(7,298)
|
|||||||||
Net loans receivable
|
$
|
700,035
|
$
|
552,627
|
(In Thousands)
|
|||
Contractually required principal and interest
|
$
|
2,621
|
|
Non-accretable discount
|
(1,014)
|
||
Expected cash flows
|
1,607
|
||
Accretable discount
|
(239)
|
||
Estimated fair value
|
$
|
1,368
|
2016
|
2015
|
||||
Balance at beginning of period
|
$
|
-
|
$
|
8
|
|
Additions
|
239
|
-
|
|||
Accretion
|
(12)
|
(1)
|
|||
Reclassification and other
|
-
|
-
|
|||
Balance at end of period
|
$
|
227
|
$
|
7
|
September 30, 2016
|
December 31, 2015
|
||||
Outstanding Balance
|
$
|
1,855
|
$
|
498
|
|
Carrying Amount
|
$
|
1,368
|
$
|
498
|
Real Estate Loans
|
|||||||||||||||||
Commercial
|
Consumer
|
||||||||||||||||
Residential
|
Commercial
|
Construction
|
Loans
|
Loans
|
Total
|
||||||||||||
September 30, 2016
|
(In thousands)
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
24
|
$
|
2,791
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,815
|
|||||
Loans acquired with deteriorated credit quality
|
797
|
571
|
-
|
-
|
-
|
1,368
|
|||||||||||
Collectively evaluated for impairment
|
237,076
|
311,908
|
20,056
|
85,145
|
48,225
|
702,410
|
|||||||||||
Total Loans
|
$
|
237,897
|
$
|
315,270
|
$
|
20,056
|
$
|
85,145
|
$
|
48,225
|
$
|
706,593
|
Real Estate Loans
|
|||||||||||||||||
Commercial
|
Consumer
|
||||||||||||||||
Residential
|
Commercial
|
Construction
|
Loans
|
Loans
|
Total
|
||||||||||||
(In thousands)
|
|||||||||||||||||
December 31, 2015
|
|||||||||||||||||
Individually evaluated for impairment
|
$
|
28
|
$
|
8,660
|
$
|
-
|
$
|
43
|
$
|
-
|
$
|
8,731
|
|||||
Loans acquired with deteriorated credit quality
|
140
|
358
|
-
|
-
|
-
|
498
|
|||||||||||
Collectively evaluated for impairment
|
161,652
|
270,105
|
18,987
|
71,047
|
29,231
|
551,022
|
|||||||||||
Total Loans
|
$
|
161,820
|
$
|
279,123
|
$
|
18,987
|
$
|
71,090
|
$
|
29,231
|
$
|
560,251
|
Unpaid
|
||||||||
Recorded
|
Principal
|
Associated
|
||||||
Investment
|
Balance
|
Allowance
|
||||||
September 30, 2016
|
(in thousands)
|
|||||||
With no related allowance recorded:
|
||||||||
Real Estate Loans
|
||||||||
Residential
|
$
|
1,003
|
$
|
1,189
|
$
|
-
|
||
Commercial
|
3,349
|
4,267
|
-
|
|||||
Subtotal
|
4,352
|
5,456
|
-
|
|||||
With an allowance recorded:
|
||||||||
Real Estate Loans
|
||||||||
Commercial
|
74
|
1,020
|
15
|
|||||
Subtotal
|
74
|
1,020
|
15
|
|||||
Total:
|
||||||||
Real Estate Loans
|
||||||||
Residential
|
1,003
|
1,189
|
-
|
|||||
Commercial
|
3,423
|
5,287
|
15
|
|||||
Total Impaired Loans
|
$
|
4,426
|
$
|
6,476
|
$
|
15
|
Unpaid
|
||||||||
Recorded
|
Principal
|
Associated
|
||||||
Investment
|
Balance
|
Allowance
|
||||||
December 31, 2015
|
(in thousands)
|
|||||||
With no related allowance recorded:
|
||||||||
Real Estate Loans
|
||||||||
Residential
|
$
|
168
|
$
|
173
|
$
|
-
|
||
Commercial
|
2,644
|
4,610
|
-
|
|||||
Commercial, financial and agriculture
|
43
|
43
|
-
|
|||||
Subtotal
|
2,855
|
4,826
|
-
|
|||||
With an allowance recorded:
|
||||||||
Real Estate Loans
|
||||||||
Commercial
|
6,373
|
6,446
|
1,613
|
|||||
Subtotal
|
6,373
|
6,446
|
1,613
|
|||||
Total:
|
||||||||
Real Estate Loans
|
||||||||
Residential
|
168
|
173
|
-
|
|||||
Commercial
|
9,017
|
11,056
|
1,613
|
|||||
Commercial, financial and agriculture
|
43
|
43
|
-
|
|||||
Total Impaired Loans
|
$
|
9,228
|
$
|
11,272
|
$
|
1,613
|
Average Recorded
|
Interest Income
|
||||||||||
Investment
|
Recognized
|
||||||||||
2016
|
2015
|
2016
|
2015
|
||||||||
Real Estate Loans:
|
|||||||||||
Residential
|
$
|
372
|
$
|
236
|
$
|
3
|
$
|
3
|
|||
Commercial
|
3,249
|
10,477
|
90
|
510
|
|||||||
Total
|
$
|
3,621
|
$
|
10,713
|
$
|
93
|
$
|
513
|
Average Recorded
|
Interest Income
|
||||||||||
Investment
|
Recognized
|
||||||||||
2016
|
2015
|
2016
|
2015
|
||||||||
Real Estate Loans:
|
|||||||||||
Residential
|
$
|
579
|
$
|
249
|
$
|
1
|
$
|
1
|
|||
Commercial
|
3,253
|
10,294
|
33
|
45
|
|||||||
Total
|
$
|
3,832
|
$
|
10,543
|
$
|
34
|
$
|
46
|
Special
|
Doubtful
|
|||||||||||||
Pass
|
Mention
|
Substandard
|
or Loss
|
Total
|
||||||||||
September 30, 2016
|
||||||||||||||
Commercial real estate loans
|
$
|
306,177
|
$
|
4,442
|
$
|
4,651
|
$
|
-
|
$
|
315,270
|
||||
Commercial loans
|
85,087
|
35
|
23
|
-
|
85,145
|
|||||||||
Total
|
$
|
391,264
|
$
|
4,477
|
$
|
4,674
|
$
|
-
|
$
|
400,415
|
Special
|
Doubtful
|
|||||||||||||
Pass
|
Mention
|
Substandard
|
or Loss
|
Total
|
||||||||||
December 31, 2015
|
||||||||||||||
Commercial real estate loans
|
$
|
267,892
|
$
|
1,837
|
$
|
9,394
|
$
|
-
|
$
|
279,123
|
||||
Commercial loans
|
71,047
|
-
|
43
|
-
|
71,090
|
|||||||||
Total
|
$
|
338,939
|
$
|
1,837
|
$
|
9,437
|
$
|
-
|
$
|
350,213
|
Performing
|
Nonperforming
|
Total
|
||||||
September 30, 2016
|
||||||||
Residential real estate loans
|
$
|
236,711
|
$
|
1,186
|
$
|
237,897
|
||
Construction
|
20,028
|
28
|
20,056
|
|||||
Consumer loans
|
48,225
|
-
|
48,225
|
|||||
Total
|
$
|
304,964
|
$
|
1,214
|
$
|
306,178
|
Performing
|
Nonperforming
|
Total
|
||||||
December 31, 2015
|
||||||||
Residential real estate loans
|
$
|
161,380
|
$
|
440
|
$
|
161,820
|
||
Construction
|
18,987
|
-
|
18,987
|
|||||
Consumer loans
|
29,231
|
-
|
29,231
|
|||||
Total
|
$
|
209,598
|
$
|
440
|
$
|
210,038
|
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
|
||||||||||||||
September 30, 2016
|
||||||||||||||||||||
Real Estate loans
|
||||||||||||||||||||
Residential
|
$
|
234,857
|
$
|
1,548
|
$
|
306
|
$
|
-
|
$
|
1,186
|
$
|
3,040
|
$
|
237,897
|
||||||
Commercial
|
313,916
|
198
|
131
|
49
|
976
|
1,354
|
315,270
|
|||||||||||||
Construction
|
20,028
|
-
|
-
|
-
|
28
|
28
|
20,056
|
|||||||||||||
Commercial loans
|
85,083
|
62
|
-
|
-
|
-
|
62
|
85,145
|
|||||||||||||
Consumer loans
|
48,118
|
96
|
11
|
-
|
-
|
107
|
48,225
|
|||||||||||||
Total
|
$
|
702,002
|
$
|
1,904
|
$
|
448
|
$
|
49
|
$
|
2,190
|
$
|
4,591
|
$
|
706,593
|
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, 2015
|
||||||||||||||||||||
Real Estate loans
|
||||||||||||||||||||
Residential
|
$
|
160,683
|
$
|
646
|
$
|
51
|
$
|
-
|
$
|
440
|
$
|
1,137
|
$
|
161,820
|
||||||
Commercial
|
272,125
|
310
|
39
|
-
|
6,649
|
6,998
|
279,123
|
|||||||||||||
Construction
|
18,959
|
28
|
-
|
-
|
-
|
28
|
18,987
|
|||||||||||||
Commercial loans
|
71,043
|
4
|
-
|
-
|
43
|
47
|
71,090
|
|||||||||||||
Consumer loans
|
29,179
|
41
|
11
|
-
|
-
|
52
|
29,231
|
|||||||||||||
Total
|
$
|
551,989
|
$
|
1,029
|
$
|
101
|
$
|
-
|
$
|
7,132
|
$
|
8,262
|
$
|
560,251
|
(In thousands)
|
Residential Real Estate
|
Commercial Real Estate
|
Construction
|
Commercial
|
Consumer
|
Total
|
|||||||||||
Beginning balance, December 31, 2015
|
$
|
1,069
|
$
|
5,506
|
$
|
90
|
$
|
397
|
$
|
236
|
$
|
7,298
|
|||||
Charge Offs
|
(32)
|
(2,670)
|
-
|
(15)
|
(71)
|
(2,788)
|
|||||||||||
Recoveries
|
4
|
11
|
-
|
-
|
39
|
54
|
|||||||||||
Provision for loan losses
|
15
|
1,516
|
(12)
|
(46)
|
127
|
1,600
|
|||||||||||
Ending balance, September 30, 2016
|
$
|
1,056
|
$
|
4,363
|
$
|
78
|
$
|
336
|
$
|
331
|
$
|
6,164
|
|||||
Ending balance individually evaluated
for impairment |
$
|
-
|
$
|
15
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
15
|
|||||
Ending balance collectively evaluated
for impairment |
$
|
1,056
|
$
|
4,348
|
$
|
78
|
$
|
336
|
$
|
331
|
$
|
6,149
|
(In thousands)
|
Residential Real Estate
|
Commercial Real Estate
|
Construction
|
Commercial
|
Consumer
|
Total
|
|||||||||||
Beginning balance, June 30, 2016
|
$
|
976
|
$
|
4,191
|
$
|
59
|
$
|
293
|
$
|
279
|
$
|
5,798
|
|||||
Charge Offs
|
(15)
|
(28)
|
-
|
(15)
|
(41)
|
(99)
|
|||||||||||
Recoveries
|
2
|
9
|
-
|
-
|
4
|
15
|
|||||||||||
Provision for loan losses
|
93
|
191
|
19
|
58
|
89
|
450
|
|||||||||||
Ending balance, September 30, 2016
|
$
|
1,056
|
$
|
4,363
|
$
|
78
|
$
|
336
|
$
|
331
|
$
|
6,164
|
(In thousands)
|
Residential Real Estate
|
Commercial Real Estate
|
Construction
|
Commercial
|
Consumer
|
Total
|
|||||||||||
Beginning balance, December 31, 2014
|
$
|
1,323
|
$
|
3,890
|
$
|
222
|
$
|
256
|
$
|
184
|
$
|
5,875
|
|||||
Charge Offs
|
(159)
|
(1,692)
|
-
|
-
|
(59)
|
(1,910)
|
|||||||||||
Recoveries
|
4
|
-
|
-
|
-
|
18
|
22
|
|||||||||||
Provision for loan losses
|
(181)
|
1,980
|
(137)
|
28
|
70
|
1,760
|
|||||||||||
Ending balance, September 30, 2015
|
$
|
987
|
$
|
4,178
|
$
|
85
|
$
|
284
|
$
|
213
|
$
|
5,747
|
|||||
Ending balance individually evaluated
for impairment |
$
|
-
|
$
|
389
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
389
|
|||||
Ending balance collectively evaluated
for impairment |
$
|
987
|
$
|
3,789
|
$
|
85
|
$
|
284
|
$
|
213
|
$
|
5,358
|
(In thousands)
|
Residential Real Estate
|
Commercial Real Estate
|
Construction
|
Commercial
|
Consumer
|
Total
|
|||||||||||
Beginning balance, June 30, 2015
|
$
|
1,085
|
$
|
4,152
|
$
|
97
|
$
|
405
|
$
|
208
|
$
|
5,947
|
|||||
Charge Offs
|
(46)
|
(865)
|
-
|
-
|
(16)
|
(927)
|
|||||||||||
Recoveries
|
-
|
-
|
-
|
-
|
7
|
7
|
|||||||||||
Provision for loan losses
|
(52)
|
891
|
(12)
|
(121)
|
14
|
720
|
|||||||||||
Ending balance, September 30, 2015
|
$
|
987
|
$
|
4,178
|
$
|
85
|
$
|
284
|
$
|
213
|
$
|
5,747
|
Fair Value Measurement Using
|
||||||||||||
Reporting Date
|
||||||||||||
Description
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||
(In thousands)
|
||||||||||||
September 30, 2016
|
||||||||||||
Available for Sale:
|
||||||||||||
U.S. Treasury securities
|
$
|
2,004
|
$
|
-
|
$
|
2,004
|
$
|
-
|
||||
U.S. Government agencies
|
2,001
|
-
|
2,001
|
-
|
||||||||
States and political subdivisions
|
130,572
|
-
|
130,572
|
-
|
||||||||
Corporate obligations
|
10,385
|
-
|
10,385
|
-
|
||||||||
Mortgage-backed securities-government
|
||||||||||||
sponsored agencies
|
164,780
|
-
|
164,780
|
-
|
||||||||
Equity securities-financial services
|
384
|
384
|
-
|
-
|
||||||||
Total
|
$
|
310,126
|
$
|
384
|
$
|
309,742
|
$
|
-
|
||||
Description
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||
(In thousands)
|
||||||||||||
December 31, 2015
|
||||||||||||
Available for Sale:
|
||||||||||||
U.S. Government agencies
|
$
|
9,169
|
$
|
-
|
$
|
9,169
|
$
|
-
|
||||
States and political subdivisions
|
60,755
|
-
|
60,755
|
-
|
||||||||
Corporate obligations
|
4,974
|
-
|
4,974
|
-
|
||||||||
Mortgage-backed securities-government
|
||||||||||||
sponsored agencies
|
63,569
|
-
|
63,569
|
-
|
||||||||
Equity securities-financial services
|
384
|
384
|
-
|
-
|
||||||||
Total
|
$
|
138,851
|
$
|
384
|
$
|
138,467
|
$
|
-
|
Fair Value Measurement Reporting Date using Reporting Date
|
||||||||||||
(In thousands)
|
||||||||||||
Description
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||
September 30, 2016
|
||||||||||||
Impaired Loans
|
$
|
4,411
|
$
|
-
|
$
|
-
|
$
|
4,411
|
||||
Foreclosed Real Estate Owned
|
5,386
|
-
|
-
|
5,386
|
||||||||
December 31, 2015
|
||||||||||||
Impaired Loans
|
$
|
7,615
|
$
|
-
|
$
|
-
|
$
|
7,615
|
||||
Foreclosed Real Estate Owned
|
2,847
|
-
|
-
|
2,847
|
Quantitative Information about Level 3 Fair Value Measurements
|
|||||||
(dollars in thousands)
|
Fair Value Estimate
|
Valuation Techniques
|
Unobservable Input
|
Range (Weighted Average)
|
|||
September 30, 2016
|
|||||||
Impaired loans
|
$
|
2,847
|
Appraisal of collateral(1)
|
Appraisal adjustments(2)
|
0 - 10% (9.50%)
|
||
Impaired loans
|
$
|
1,564
|
Present value of future cash flows
|
Loan discount rate
|
4 - 6.75% (5.46%)
|
||
Foreclosed real estate owned
|
$
|
5,386
|
Appraisal of collateral(1)
|
Liquidation Expenses(2)
|
0 - 10% (9.90%)
|
Quantitative Information about Level 3 Fair Value Measurements
|
|||||||
(dollars in thousands)
|
Fair Value Estimate
|
Valuation Techniques
|
Unobservable Input
|
Range (Weighted Average)
|
|||
December 31, 2015
|
|||||||
Impaired loans
|
$
|
2,574
|
Appraisal of collateral(1)
|
Appraisal adjustments(2)
|
10% (10%)
|
||
Impaired loans
|
$
|
5,041
|
Present value of future cash flows
|
Loan discount rate
|
4-7% (5.61%)
|
||
Foreclosed real estate owned
|
$
|
2,847
|
Appraisal of collateral(1)
|
Liquidation Expenses(2)
|
10% (10%)
|
(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.
|
Fair Value Measurements at September 30, 2016
|
||||||||||||||
Carrying Amount
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||
Financial assets:
|
||||||||||||||
Cash and cash equivalents
|
$
|
33,133
|
$
|
33,133
|
$
|
33,133
|
$
|
-
|
$
|
-
|
||||
Securities
|
310,126
|
310,126
|
384
|
309,742
|
-
|
|||||||||
Loans receivable, net
|
700,035
|
715,469
|
-
|
-
|
715,469
|
|||||||||
Mortgage servicing rights
|
244
|
260
|
-
|
-
|
260
|
|||||||||
Regulatory stock
|
2,351
|
2,351
|
2,351
|
-
|
-
|
|||||||||
Bank owned life insurance
|
35,889
|
35,889
|
35,889
|
-
|
-
|
|||||||||
Accrued interest receivable
|
3,541
|
3,541
|
3,541
|
-
|
-
|
|||||||||
Financial liabilities:
|
||||||||||||||
Deposits
|
922,244
|
922,394
|
275,564
|
-
|
646,830
|
|||||||||
Short-term borrowings
|
33,156
|
33,156
|
33,156
|
-
|
-
|
|||||||||
Other borrowings
|
42,542
|
42,712
|
-
|
-
|
42,712
|
|||||||||
Accrued interest payable
|
1,040
|
1,040
|
1,040
|
-
|
-
|
|||||||||
Off-balance sheet financial instruments:
|
||||||||||||||
Commitments to extend credit and
outstanding letters of credit |
-
|
-
|
-
|
-
|
-
|
Fair Value Measurements at December 31, 2015
|
||||||||||||||
Carrying Amount
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||
Financial assets:
|
||||||||||||||
Cash and cash equivalents
|
$
|
10,010
|
$
|
10,010
|
$
|
10,010
|
$
|
-
|
$
|
-
|
||||
Securities
|
138,851
|
138,851
|
384
|
138,467
|
-
|
|||||||||
Loans receivable, net
|
552,627
|
559,416
|
-
|
-
|
559,416
|
|||||||||
Mortgage servicing rights
|
261
|
291
|
-
|
-
|
291
|
|||||||||
Regulatory stock
|
3,412
|
3,412
|
3,412
|
-
|
-
|
|||||||||
Bank owned life insurance
|
18,820
|
18,820
|
18,820
|
-
|
-
|
|||||||||
Accrued interest receivable
|
2,363
|
2,363
|
2,363
|
-
|
-
|
|||||||||
Financial liabilities:
|
||||||||||||||
Deposits
|
550,909
|
551,175
|
354,162
|
-
|
197,013
|
|||||||||
Short-term borrowings
|
53,235
|
53,235
|
53,235
|
-
|
-
|
|||||||||
Other borrowings
|
41,126
|
41,260
|
-
|
-
|
41,260
|
|||||||||
Accrued interest payable
|
957
|
957
|
957
|
-
|
-
|
|||||||||
Off-balance sheet financial instruments:
|
||||||||||||||
Commitments to extend credit and
outstanding letters of credit |
-
|
-
|
-
|
-
|
-
|
Purchase Price Consideration in Common Stock
|
||
Delaware Bancshares, Inc. common shares settled for stock
|
694,114
|
|
Exchange Ratio
|
0.6221
|
|
Norwood Financial Corp. shares issued
|
431,605
|
|
Value assigned to Norwood Financial Corp. common share
|
$28.15
|
|
Purchase price assigned to Delaware Bancshares, Inc. common shares exchanged for Norwood Financial Corp.
|
$12,150
|
|
Purchase Price Consideration – Cash for Common Stock
|
||
Delaware Bancshares, Inc. shares exchanged for cash
|
231,385
|
|
Purchase price paid to each Delaware Bancshares, Inc. common shares exchanged for cash
|
$16.68
|
|
Purchase price assigned to Delaware Bancshares, Inc. common shares exchanged for cash
|
$3,860
|
|
Purchase price consideration-Cash in Lieu of Fractional Shares
|
6
|
|
Total Purchase Price
|
$16,016
|
|
Net Assets Acquired:
|
||
Delaware Bancshares, Inc. shareholders' equity
|
19,357
|
|
Delaware Bancshares, Inc. goodwill and intangibles
|
(7,640)
|
|
Total tangible equity
|
11,717
|
|
Adjustments to reflect assets acquired at fair value:
|
||
Investments
|
219
|
|
Loans
|
||
Interest rate
|
1,486
|
|
General credit
|
(1,614)
|
|
Specific credit- non-amortizing
|
(260)
|
|
Specific credit – amortizing
|
(239)
|
|
Core deposit intangible
|
449
|
|
Deferred loan fees
|
(296)
|
|
Premises and equipment
|
3,053
|
|
Allowance for loan and lease losses
|
1,651
|
|
Deferred tax assets
|
(1,417)
|
|
Other
|
(445)
|
|
Adjustments to reflect liabilities acquired at fair value:
|
||
Time deposits
|
(252)
|
|
14,052
|
||
Goodwill resulting from merger
|
$1,964
|
|
Total purchase price
|
$16,016
|
|
Net assets acquired:
|
||
Cash
|
$14,977
|
|
Securities available for sale
|
208,488
|
|
Loans
|
116,674
|
|
Premises and equipment, net
|
7,292
|
|
Regulatory stock
|
279
|
|
Accrued interest receivable
|
1,626
|
|
Bank-owned life insurance
|
14,762
|
|
Core deposit intangible
|
449
|
|
Deferred tax assets
|
3,034
|
|
Other assets
|
2,934
|
|
Time deposits
|
(71,342)
|
|
Deposits other than time deposits
|
(255,921)
|
|
Borrowings
|
(21,232)
|
|
Accrued interest payable
|
(95)
|
|
Other liabilities
|
(7,873)
|
|
14,052
|
||
Goodwill resulting from Delaware Bancshares, Inc.
|
||
Merger
|
$1,964
|
|
2016
|
$
|
13
|
||
2017
|
30
|
|||
2018
|
30
|
|||
2019
|
30
|
|||
2020
|
30
|
|||
After five years
|
316
|
|||
$
|
449
|
|||
Actual From Acquisition Date
|
Pro Forma
Nine Months Ended September 30
|
||||
(In Thousands, Except Per Share Data)
|
Through September 30, 2016
|
2016
|
2015
|
||
Net interest income
|
$1,560
|
$25,377
|
$26,340
|
||
Non-interest income
|
357
|
4,715
|
5,179
|
||
Net income
|
300
|
1,243
|
6,050
|
||
Pro forma earnings per share:
|
|||||
Basic
|
$0.08
|
$0.33
|
$1.60
|
||
Diluted
|
$0.08
|
$0.33
|
$1.60
|
||
•
|
our ability to realize the anticipated benefits from our acquisition of Delaware Bancshares, 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
|
|
•
|
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
|
|
•
|
cybersecurity
|
September 30, 2016
|
December 31, 2015
|
||||||||||
(dollars in thousands)
|
Amount
|
% of portfolio
|
Amount
|
% of portfolio
|
|||||||
U.S. Treasury securities
|
$
|
2,004
|
0.7
|
%
|
$
|
-
|
-
|
%
|
|||
U.S. Government agencies
|
2,001
|
0.7
|
9,169
|
6.6
|
|||||||
States and political subdivisions
|
130,572
|
42.1
|
60,755
|
43.8
|
|||||||
Corporate obligations
|
10,385
|
3.3
|
4,974
|
3.5
|
|||||||
Mortgage-backed securities-
|
|||||||||||
government sponsored entities
|
164,780
|
53.1
|
63,569
|
45.8
|
|||||||
Equity securities-financial services
|
384
|
0.1
|
384
|
0.3
|
|||||||
Total
|
$
|
310,126
|
100.0
|
%
|
$
|
138,851
|
100.0
|
%
|
(dollars in thousands)
|
September 30, 2016
|
December 31, 2015
|
||||
Loans accounted for on a non-accrual basis:
|
||||||
Real Estate
|
||||||
Residential
|
$
|
1,186
|
$
|
440
|
||
Commercial
|
976
|
6,649
|
||||
Construction
|
28
|
-
|
||||
Commercial, financial and agricultural
|
-
|
43
|
||||
Consumer loans to individuals
|
-
|
-
|
||||
Total non-accrual loans *
|
2,190
|
7,132
|
||||
Accruing loans which are contractually
|
||||||
past due 90 days or more
|
49
|
-
|
||||
Total non-performing loans
|
2,239
|
7,132
|
||||
Foreclosed real estate
|
5,386
|
2,847
|
||||
Total non-performing assets
|
$
|
7,625
|
$
|
9,979
|
||
Allowance for loans losses
|
$
|
6,164
|
$
|
7,298
|
||
Coverage of non-performing loans
|
275.30
|
%
|
102.33
|
%
|
||
Non-performing loans to total loans
|
0.32
|
%
|
1.27
|
%
|
||
Non-performing loans to total assets
|
0.20
|
%
|
0.95
|
%
|
||
Non-performing assets to total assets
|
0.68
|
%
|
1.33
|
%
|
(dollars in thousands)
|
September 30, 2016
|
December 31, 2015
|
|||
Non-interest bearing demand
|
$
|
200,481
|
$
|
107,814
|
|
Interest bearing demand
|
96,189
|
52,040
|
|||
Money market deposit accounts
|
158,156
|
119,028
|
|||
Savings
|
192,005
|
75,280
|
|||
Time deposits <$100,000
|
160,519
|
121,211
|
|||
Time deposits >$100,000
|
114,894
|
75,536
|
|||
Total
|
$
|
922,244
|
$
|
550,909
|
September 30, 2016
|
December 31, 2015
|
||||
Notes with the FHLB:
|
|||||
Convertible note due January 2017 at 4.71%
|
$
|
10,000
|
$
|
10,000
|
|
Amortizing fixed rate borrowing due December 2017 at 1.275%
|
5,024
|
8,000
|
|||
Amortizing fixed rate borrowing due January 2018 at 0.91%
|
814
|
1,267
|
|||
Amortizing fixed rate borrowing due December 2018 at 1.425%
|
1,835
|
2,434
|
|||
Amortizing fixed rate borrowing due June 2020 at 1.490%
|
7,569
|
9,033
|
|||
Amortizing fixed rate borrowing due December 2020 at 1.706%
|
4,277
|
5,000
|
|||
Amortizing fixed rate borrowing due March 2022 at 1.748%
|
4,775
|
5,392
|
|||
$
|
34,294
|
$
|
41,126
|
September 30, 2016
|
December 31, 2015
|
||
Tier 1 Capital
|
|||
(To average assets)
|
10.64%
|
12.40%
|
|
Tier 1 Capital
|
|||
(To risk-weighted assets)
|
14.22%
|
15.86%
|
|
Common Equity Tier 1 Capital
|
|||
(To risk-weighted assets)
|
14.22%
|
15.86%
|
|
Total Capital
|
|||
(To risk-weighted assets)
|
15.04%
|
17.09%
|
(Tax-Equivalent Basis,
|
Three Months Ended September 30,
|
||||||||||||||||
dollars in thousands)
|
2016
|
2015
|
|||||||||||||||
Average
|
Average
|
Average
|
Average
|
||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||
(2)
|
(1)
|
(3)
|
(2)
|
(1)
|
(3)
|
||||||||||||
Assets
|
|||||||||||||||||
Interest-earning assets:
|
|||||||||||||||||
Interest bearing deposits with banks
|
$
|
15,756
|
$
|
22
|
0.53%
|
$
|
4,508
|
$
|
3
|
0.27%
|
|||||||
Securities available for sale:
|
|||||||||||||||||
Taxable
|
141,751
|
625
|
1.77
|
93,051
|
454
|
1.95
|
|||||||||||
Tax-exempt (1)
|
100,538
|
930
|
3.70
|
60,100
|
692
|
4.61
|
|||||||||||
Total securities available for sale (1)
|
242,289
|
1,555
|
2.57
|
153,151
|
1,146
|
2.99
|
|||||||||||
Loans receivable (1) (4) (5)
|
661,781
|
7,437
|
4.50
|
539,487
|
6,083
|
4.51
|
|||||||||||
Total interest-earning assets
|
919,826
|
9,014
|
3.92
|
697,146
|
7,232
|
4.15
|
|||||||||||
Non-interest earning assets:
|
|||||||||||||||||
Cash and due from banks
|
13,340
|
9,016
|
|||||||||||||||
Allowance for loan losses
|
(5,980)
|
(5,815)
|
|||||||||||||||
Other assets
|
73,091
|
43,808
|
|||||||||||||||
Total non-interest earning assets
|
80,451
|
47,009
|
|||||||||||||||
Total Assets
|
$
|
1,000,277
|
$
|
744,155
|
|||||||||||||
Liabilities and Stockholders' Equity
|
|||||||||||||||||
Interest-bearing liabilities:
|
|||||||||||||||||
Interest bearing demand and money market
|
$
|
231,303
|
$
|
91
|
0.16
|
$
|
182,645
|
$
|
79
|
0.17
|
|||||||
Savings
|
155,896
|
23
|
0.06
|
75,321
|
10
|
0.05
|
|||||||||||
Time
|
245,406
|
563
|
0.92
|
203,658
|
522
|
1.03
|
|||||||||||
Total interest-bearing deposits
|
632,605
|
677
|
0.43
|
461,624
|
611
|
0.53
|
|||||||||||
Short-term borrowings
|
34,192
|
65
|
0.76
|
33,175
|
19
|
0.23
|
|||||||||||
Other borrowings
|
35,386
|
216
|
2.44
|
30,541
|
189
|
2.48
|
|||||||||||
Total interest-bearing liabilities
|
702,183
|
958
|
0.55
|
525,340
|
819
|
0.62
|
|||||||||||
Non-interest bearing liabilities:
|
|||||||||||||||||
Demand deposits
|
171,329
|
113,094
|
|||||||||||||||
Other liabilities
|
12,542
|
4,376
|
|||||||||||||||
Total non-interest bearing liabilities
|
183,871
|
117,470
|
|||||||||||||||
Stockholders' equity
|
114,223
|
101,345
|
|||||||||||||||
Total Liabilities and Stockholders' Equity
|
$
|
1,000,277
|
$
|
744,155
|
|||||||||||||
Net interest income (tax equivalent basis)
|
8,056
|
3.37%
|
6,413
|
3.53%
|
|||||||||||||
Tax-equivalent basis adjustment
|
(486)
|
(360)
|
|||||||||||||||
Net interest income
|
$
|
7,570
|
$
|
6,053
|
|||||||||||||
Net interest margin (tax equivalent basis)
|
3.50%
|
3.68%
|
(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 September 30, 2016 Compared to
|
||||||||
Three months ended September 30, 2015
|
||||||||
Variance due to
|
||||||||
Volume
|
Rate
|
Net
|
||||||
(dollars in thousands)
|
||||||||
Interest earning assets:
|
||||||||
Interest bearing deposits with banks
|
$
|
10
|
$
|
9
|
$
|
19
|
||
Securities available for sale:
|
||||||||
Taxable
|
230
|
(59)
|
171
|
|||||
Tax-exempt securities
|
432
|
(194)
|
238
|
|||||
Total securities
|
662
|
(253)
|
409
|
|||||
Loans receivable
|
1,371
|
(17)
|
1,354
|
|||||
Total interest earning assets
|
2,043
|
(261)
|
1,782
|
|||||
Interest bearing liabilities:
|
||||||||
Interest-bearing demand and money market
|
18
|
(6)
|
12
|
|||||
Savings
|
10
|
3
|
13
|
|||||
Time
|
104
|
(63)
|
41
|
|||||
Total interest bearing deposits
|
132
|
(66)
|
66
|
|||||
Short-term borrowings
|
2
|
44
|
46
|
|||||
Other borrowings
|
31
|
(4)
|
27
|
|||||
Total interest bearing liabilities
|
165
|
(26)
|
139
|
|||||
Net interest income (tax-equivalent basis)
|
$
|
1,878
|
$
|
(235)
|
$
|
1,643
|
(dollars in thousands)
|
Three months ended
|
|
September 30, 2016 to September 30, 2015
|
||
Net income three months ended September 30, 2015
|
$
|
1,777
|
Change due to:
|
||
Net interest income
|
1,517
|
|
Provision for loan losses
|
270
|
|
Net gain on sales of loans and securities
|
(79)
|
|
Other income
|
407
|
|
Salaries and employee benefits
|
(895)
|
|
Occupancy, furniture and equipment
|
(282)
|
|
Foreclosed real estate owned
|
(72)
|
|
Merger related
|
(1,659)
|
|
All other expenses
|
(701)
|
|
Income tax expense
|
329
|
|
Net income three months ended September 30, 2016
|
$
|
612
|
(Tax-Equivalent Basis,
|
Nine Months Ended September 30,
|
||||||||||||||||
dollars in thousands)
|
2016
|
2015
|
|||||||||||||||
Average
|
Average
|
Average
|
Average
|
||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||
(2)
|
(1)
|
(3)
|
(2)
|
(1)
|
(3)
|
||||||||||||
Assets
|
|||||||||||||||||
Interest-earning assets:
|
|||||||||||||||||
Interest bearing deposits with banks
|
$
|
7,117
|
$
|
28
|
0.52%
|
$
|
7,960
|
$
|
15
|
0.25%
|
|||||||
Securities available for sale:
|
|||||||||||||||||
Taxable
|
101,851
|
1,503
|
1.97
|
97,310
|
1,509
|
2.07
|
|||||||||||
Tax-exempt (1)
|
72,763
|
2,279
|
4.18
|
59,068
|
2,084
|
4.70
|
|||||||||||
Total securities available for sale (1)
|
174,614
|
3,782
|
2.89
|
156,378
|
3,593
|
3.06
|
|||||||||||
Loans receivable (1) (4) (5)
|
598,808
|
20,187
|
4.49
|
523,269
|
18,230
|
4.65
|
|||||||||||
Total interest-earning assets
|
780,539
|
23,997
|
4.10
|
687,607
|
21,838
|
4.23
|
|||||||||||
Non-interest earning assets:
|
|||||||||||||||||
Cash and due from banks
|
10,034
|
8,492
|
|||||||||||||||
Allowance for loan losses
|
(6,845)
|
(6,001)
|
|||||||||||||||
Other assets
|
56,345
|
45,052
|
|||||||||||||||
Total non-interest earning assets
|
59,534
|
47,543
|
|||||||||||||||
Total Assets
|
$
|
840,073
|
$
|
735,150
|
|||||||||||||
Liabilities and Stockholders' Equity
|
|||||||||||||||||
Interest-bearing liabilities:
|
|||||||||||||||||
Interest-bearing demand and money market
|
$
|
195,501
|
$
|
243
|
0.17
|
$
|
178,248
|
$
|
226
|
0.17
|
|||||||
Savings
|
104,281
|
42
|
0.05
|
74,756
|
28
|
0.05
|
|||||||||||
Time
|
213,518
|
1,553
|
0.97
|
214,076
|
1,579
|
0.98
|
|||||||||||
Total interest-bearing deposits
|
513,300
|
1,838
|
0.48
|
467,080
|
1,833
|
0.52
|
|||||||||||
Short-term borrowings
|
42,931
|
142
|
0.44
|
29,065
|
47
|
0.22
|
|||||||||||
Other borrowings
|
37,656
|
669
|
2.37
|
28,056
|
553
|
2.63
|
|||||||||||
Total interest bearing liabilities
|
593,887
|
2,649
|
0.59
|
524,201
|
2,433
|
0.62
|
|||||||||||
Non-interest bearing liabilities:
|
|||||||||||||||||
Demand deposits
|
132,263
|
105,677
|
|||||||||||||||
Other liabilities
|
6,955
|
4,250
|
|||||||||||||||
Total non-interest bearing liabilities
|
139,218
|
109,927
|
|||||||||||||||
Stockholders' equity
|
106,968
|
101,022
|
|||||||||||||||
Total Liabilities and Stockholders' Equity
|
$
|
840,073
|
$
|
735,150
|
|||||||||||||
Net interest income (tax equivalent basis)
|
21,348
|
3.50%
|
19,405
|
3.62%
|
|||||||||||||
Tax-equivalent basis adjustment
|
(1,209)
|
(996)
|
|||||||||||||||
Net interest income
|
$
|
20,139
|
$
|
18,409
|
|||||||||||||
Net interest margin (tax equivalent basis)
|
3.65%
|
3.76%
|
(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)
|
||||||||
Nine months ended September 30, 2016 Compared to
|
||||||||
Nine months ended September 30, 2015
|
||||||||
Variance due to
|
||||||||
Volume
|
Rate
|
Net
|
||||||
(dollars in thousands)
|
||||||||
Interest earning assets:
|
||||||||
Interest bearing deposits with banks
|
$
|
(3)
|
$
|
16
|
$
|
13
|
||
Securities available for sale:
|
||||||||
Taxable
|
45
|
(51)
|
(6)
|
|||||
Tax-exempt securities
|
345
|
(150)
|
195
|
|||||
Total securities
|
390
|
(201)
|
189
|
|||||
Loans receivable
|
2,273
|
(316)
|
1,957
|
|||||
Total interest earning assets
|
2,660
|
(501)
|
2,159
|
|||||
Interest bearing liabilities:
|
||||||||
Interest-bearing demand and money market
|
17
|
-
|
17
|
|||||
Savings
|
14
|
-
|
14
|
|||||
Time
|
(5)
|
(21)
|
(26)
|
|||||
Total interest bearing deposits
|
26
|
(21)
|
5
|
|||||
Short-term borrowings
|
38
|
57
|
95
|
|||||
Other borrowings
|
183
|
(67)
|
116
|
|||||
Total interest bearing liabilities
|
247
|
(31)
|
216
|
|||||
Net interest income (tax-equivalent basis)
|
$
|
2,413
|
$
|
(470)
|
$
|
1,943
|
(dollars in thousands)
|
Nine months ended
|
|
September 30, 2016 to September 30, 2015
|
||
Net income nine months ended September 30, 2015
|
$
|
5,781
|
Change due to:
|
||
Net interest income
|
1,730
|
|
Provision for loan losses
|
160
|
|
Gain on sales of loans and securities
|
(241)
|
|
Other income
|
447
|
|
Salaries and employee benefits
|
(1,237)
|
|
Occupancy, furniture and equipment
|
(165)
|
|
Foreclosed real estate owned
|
(146)
|
|
Merger related
|
(1,664)
|
|
All other expenses
|
(919)
|
|
Income tax expense
|
619
|
|
Net income nine months ended September 30, 2016
|
$
|
4,365
|
3 Months
|
3-12 Months
|
1 to 3 Years
|
Over 3 Years
|
Total
|
||||||||||
Federal funds sold and interest bearing deposits
|
$
|
13,629
|
$
|
-
|
$
|
100
|
$
|
-
|
$
|
13,729
|
||||
Securities
|
10,310
|
26,262
|
59,582
|
213,972
|
310,126
|
|||||||||
Loans Receivable
|
161,944
|
161,183
|
193,287
|
189,785
|
706,199
|
|||||||||
Total RSA
|
$
|
185,883
|
$
|
187,445
|
$
|
252,969
|
$
|
403,757
|
$
|
1,030,054
|
||||
Non-maturity interest-bearing deposits
|
$
|
70,248
|
$
|
74,399
|
$
|
198,304
|
$
|
103,399
|
$
|
446,350
|
||||
Time Deposits
|
46,095
|
109,264
|
89,342
|
30,712
|
275,413
|
|||||||||
Other
|
17,824
|
28,016
|
24,793
|
5,065
|
75,698
|
|||||||||
Total RSL
|
$
|
134,167
|
$
|
211,679
|
$
|
312,439
|
$
|
139,176
|
$
|
797,461
|
||||
Interest Sensitivity Gap
|
$
|
51,716
|
$
|
(24,234)
|
$
|
(59,470)
|
$
|
264,581
|
$
|
232,593
|
||||
Cumulative Gap
|
51,716
|
27,482
|
(31,988)
|
232,593
|
||||||||||
RSA/RSL-cumulative
|
138.5%
|
107.9%
|
95.1%
|
129.2%
|
||||||||||
December 31, 2015
|
||||||||||||||
Interest Sensitivity Gap
|
$
|
38,817
|
$
|
11,614
|
$
|
(57,114)
|
$
|
168,269
|
$
|
161,586
|
||||
Cumulative Gap
|
38,817
|
50,431
|
(6,683)
|
161,586
|
||||||||||
RSA/RSL-cumulative
|
140.9%
|
122.8%
|
98.5%
|
130.1%
|
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)
|
4.1
|
Amended and Restated Declaration of Trust, dated as of October 31, 2007*
|
4.2
|
Indenture, dated October 31, 2007, between Wells Fargo Bank National Association, as trustee, and Delaware Bancshares, Inc.*
|
4.3
|
First Supplemental Indenture, dated as of July 31, 2016, by and between Wells Fargo Bank, National Association, as Trustee, Delaware Bancshares, Inc. and Norwood Financial Corp.*
|
10.1
|
Employment Agreement with Lewis J. Critelli (3)
|
10.2
|
Change in Control Severance Agreement with William S. Lance(3)
|
10.3
|
Norwood Financial Corp. Stock Option Plan (4)
|
10.4
|
Change in Control Severance Agreement with Robert J. Mancuso(5)
|
10.5
|
Salary Continuation Agreement between the Bank and William W. Davis, Jr. (6)
|
10.6
|
Salary Continuation Agreement between the Bank and Lewis J. Critelli (6)
|
10.7
|
1999 Directors Stock Compensation Plan (4)
|
10.8
|
Salary Continuation Agreement between the Bank and John H. Sanders (7)
|
10.9
|
2006 Stock Option Plan (8)
|
10.10
|
First and Second Amendments to Salary Continuation Agreement with William W. Davis, Jr. (9)
|
10.11
|
First and Second Amendments to Salary Continuation Agreement with Lewis J. Critelli (9)
|
10.12
|
First and Second Amendments to Salary Continuation Agreement with John H. Sanders (9)
|
10.13
|
Change In Control Severance Agreement with James F. Burke(10)
|
10.14
|
2014 Equity Incentive Plan(11)
|
10.15
|
Addendum to Change in Control Severance Agreement with William S. Lance (12)
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certification of CEO
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certification of CFO
|
32
|
Certification pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of Sarbanes Oxley Act of 2002
|
101
|
Interactive Data Files
|
(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 exhibit to the Registrant's Form 10-Q filed with the Commission on August 8, 2014.
|
(3)
|
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.
|
(4)
|
Incorporated herein by reference to the identically numbered exhibits of the Registrant's Form 10-K filed with the Commission on March 23, 2000.
|
(5)
|
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.
|
(6)
|
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.
|
(7)
|
Incorporated herein by reference to the identically numbered exhibit to the Registrant's Form 10-K filed with the Commission on March 22, 2004.
|
(8)
|
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.
|
(9)
|
Incorporated herein by reference from the Exhibits to the Registrant's Current Report on Form 8-K filed on April 4, 2006.
|
(10)
|
Incorporated by reference from the identically numbered exhibit to the Registrant's Form 10-Q filed with the Commission on November 7, 2013.
|
(11)
|
Incorporated by reference to Exhibit 10.1 to the Registrant's Registration Statement on Form S-8 (File No. 333-195643) filed with the Commission on May 2, 2014.
|
(12)
|
Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on February 18, 2015.
|
NORWOOD FINANCIAL CORP.
|
||||||
Date:
|
November 9, 2016
|
By:
|
/s/ Lewis J. Critelli
|
|||
Lewis J. Critelli
|
||||||
President and Chief Executive Officer
|
||||||
(Principal Executive Officer)
|
||||||
Date:
|
November 9, 2016
|
By:
|
/s/ William S. Lance
|
|||
William S. Lance
|
||||||
Executive Vice President and
|
||||||
Chief Financial Officer
|
||||||
(Principal Financial Officer)
|