Shares of Norwood Financial on Monday declined after the company reported a big drop in net profit in the fourth quarter amid a significantly higher provision for credit losses.
At 1:31 p.m. ET, shares were down 6.3% at $27.31. The stock has dropped 17% since the year started.
The bank holding company posted a net income of $355,000, or 4 cents a share, compared with $7.1 million, or 88 cents a share, for the same period a year earlier.
Norwood Financial saw its total interest expenses jump 241% to $10.8 million, and its provision for credit losses surge to $6.1 million from $300,000 a year ago.
“Our results in 2023 reflect decreasing net interest spreads due to rising interest rates, which have impacted our cost of interest-bearing liabilities more than the increase in yield earned on interest-earning assets,” Chief Executive James Donnelly said.