Document and Entity Information
v3.8.0.1
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2017
Nov. 01, 2017
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2017  
Entity Registrant Name NORWOOD FINANCIAL CORP  
Entity Central Index Key 0001013272  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   6,234,939
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q3  

Consolidated Balance Sheets
v3.8.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
ASSETS    
Cash and due from banks $ 13,947 $ 14,900
Interest-bearing deposits with banks 368 2,274
Cash and cash equivalents 14,315 17,174
Securities available for sale, at fair value 285,706 302,564
Loans receivable 756,014 713,889
Less: Allowance for loan losses 7,760 6,463
Net loans receivable 748,254 707,426
Regulatory stock, at cost 3,115 2,119
Bank premises and equipment, net 12,922 13,531
Bank owned life insurance 36,839 36,133
Accrued interest receivable 3,729 3,643
Foreclosed real estate owned 4,243 5,302
Goodwill 11,331 11,331
Other intangibles 496 612
Deferred tax asset 8,304 8,989
Other assets 2,699 2,359
TOTAL ASSETS 1,131,953 1,111,183
LIABILITIES    
Deposits: Non-interest bearing demand 212,844 191,445
Deposits: Interest-bearing 711,178 733,940
Total deposits 924,022 925,385
Short-term borrowings 47,229 32,811
Other borrowings 31,771 32,001
Accrued interest payable 1,167 1,069
Other liabilities 10,072 8,838
TOTAL LIABILITIES 1,014,261 1,000,104
STOCKHOLDERS' EQUITY    
Common stock, $.10 par value per share, authorized 10,000,000 shares; issued 2017: 6,246,662 shares, 2016: 4,164,723 shares 625 416
Surplus 47,467 47,682
Retained earnings 71,210 67,225
Treasury stock at cost: 2017: 11,724 shares, 2016: 4,509 shares (341) (125)
Accumulated other comprehensive loss [1] (1,269) (4,119)
TOTAL STOCKHOLDERS' EQUITY 117,692 111,079
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,131,953 $ 1,111,183
[1] All amounts are net of tax. Amounts in parentheses indicate debits.

Consolidated Balance Sheets (Parenthetical)
v3.8.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2017
Dec. 31, 2016
Consolidated Balance Sheets [Abstract]    
Common Stock, Par or Stated Value Per Share $ 0.10 $ 0.10
Common Stock, Shares Authorized 10,000,000 10,000,000
Common Stock, Shares, Issued 6,246,662 4,164,723
Treasury Stock, Shares 11,724 4,509

Consolidated Statements of Income
v3.8.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
INTEREST INCOME        
Loans receivable, including fees $ 8,289 $ 7,267 $ 24,020 $ 19,752
Securities 1,605 1,239 4,856 3,008
Other 2 22 37 28
Total Interest Income 9,896 8,528 28,913 22,788
INTEREST EXPENSE        
Deposits 828 677 2,392 1,838
Short-term borrowings 82 65 138 142
Other borrowings 116 216 360 669
Total interest expense 1,026 958 2,890 2,649
NET INTEREST INCOME 8,870 7,570 26,023 20,139
PROVISION FOR LOAN LOSSES 600 450 1,800 1,600
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 8,270 7,120 24,223 18,539
OTHER INCOME        
Service charges and fees 1,105 829 3,056 2,000
Income from fiduciary activities 160 126 395 342
Net realized gains on sales of securities 129   167 269
Gains on sale of loans, net     67 54
Gain on sale of deposits     209  
Earnings and proceeds on bank owned life insurance 320 283 850 616
Other 144 161 414 408
Total other income 1,858 1,399 5,158 3,689
OTHER EXPENSES        
Salaries and employee benefits 3,209 3,070 9,639 7,620
Occupancy, furniture & equipment, net 799 755 2,519 1,736
Data processing and related operations 354 423 1,022 949
Taxes, other than income 233 205 693 535
Professional fees 217 185 706 516
Federal Deposit Insurance Corporation insurance 97 170 283 402
Foreclosed real estate 303 119 1,028 582
Amortization of intangibles 35 34 115 81
Merger related   1,659   1,664
Other 992 1,059 2,979 2,471
Total other expenses 6,239 7,679 18,984 16,556
INCOME BEFORE INCOME TAXES 3,889 840 10,397 5,672
INCOME TAX EXPENSE 948 228 2,356 1,307
NET INCOME $ 2,941 $ 612 $ 8,041 $ 4,365
BASIC EARNINGS PER SHARE [1] $ 0.47 $ 0.10 $ 1.29 $ 0.77
DILUTED EARNINGS PER SHARE [1] $ 0.47 $ 0.10 $ 1.28 $ 0.77
[1] Per share data has been restated to give retroactive effect to the 50% stock dividend declared on August 8, 2017.

Consolidated Statements of Income (Parenthetical)
v3.8.0.1
Consolidated Statements of Income (Parenthetical)
9 Months Ended
Sep. 30, 2017
Consolidated Statements of Income [Abstract]  
Common Stock, Dividend Rate, Percentage 50.00%

Consolidated Statements of Comprehensive Income
v3.8.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Consolidated Statements of Comprehensive Income [Abstract]        
Net income $ 2,941 $ 612 $ 8,041 $ 4,365
Other comprehensive income (loss):        
Unrealized holding gain 529 (653) 4,486 3,176
Unrealized holding gain : Tax effect (180) 221 (1,526) (1,080)
Reclassification of gains recognized in net income (129)   (167) (269)
Reclassification of gains recognized in net income: Tax effect 43   57 91
Other comprehensive income (loss) [1] 263 (432) 2,850 1,918
Comprehensive Income $ 3,204 $ 180 $ 10,891 $ 6,283
[1] All amounts are net of tax. Amounts in parentheses indicate debits.

Consolidated Statements of Changes in Stockholders' Equity
v3.8.0.1
Consolidated Statements of Changes in Stockholders' Equity - 9 months ended Sep. 30, 2017 - 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, 2016 $ 416 $ 47,682 $ 67,225 $ (125) $ (4,119) $ 111,079
Beginning balance, shares at Dec. 31, 2016 4,164,723     4,509    
Net income     8,041     8,041
Other comprehensive income         2,850 2,850 [1]
Cash dividends declared [2]     (4,037)     (4,037)
Compensation expense related to restricted stock   107       107
Acquisition of treasury stock       $ (1,290)   (1,290)
Acquisition of treasury stock, shares       32,257    
Stock options exercised   (308)   $ 1,074   $ 766
Stock options exercised, shares       (28,950)   (28,950)
Tax benefit of stock options   125       $ 125
Compensation expense related to stock options   69       69
Stock dividend declared-50% $ 209 (208) (19)     (18)
Stock dividend declared-50%, shares 2,081,939     3,908    
Ending balance, shares at Sep. 30, 2017 6,246,662     11,724    
Ending balance at Sep. 30, 2017 $ 625 $ 47,467 $ 71,210 $ (341) $ (1,269) $ 117,692
[1] All amounts are net of tax. Amounts in parentheses indicate debits.
[2] Per share data has been restated to give retroactive effect to the 50% stock dividend declared on August 8, 2017.

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical)
v3.8.0.1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical)
9 Months Ended
Sep. 30, 2017
$ / shares
Consolidated Statements of Changes in Stockholders' Equity [Abstract]  
Cash dividends declared $ 0.65
Common Stock, Dividend Rate, Percentage 50.00%

Consolidated Statements of Cash Flows
v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 8,041 $ 4,365
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for loan losses 1,800 1,600
Depreciation 703 484
Amortization of intangible assets 115 81
Deferred income taxes (783) 155
Net amortization of securities premiums and discounts 1,651 1,039
Net realized gain on sales of securities (167) (269)
Gain on sale of deposits (209) 0
Earnings and proceeds on bank owned life insurance (850) (616)
Loss on sales and writedowns of fixed assets and foreclosed real estate owned 673 2
Gain on sale of loans (67) (54)
Loans originated for sale (1,693) (1,685)
Proceeds from sale of loans originated for sale 1,760 1,739
Compensation expense related to stock options 69 53
Tax benefit of stock options exercised 125 3
Compensation expense related to restricted stock 107 67
(Increase) decrease in accrued interest receivable (86) (1,178)
Increase (decrease) in accrued interest payable 98 84
Other, net 1,153 2,068
Net cash provided by operating activities 12,440 7,938
CASH FLOWS FROM INVESTING ACTIVITIES    
Proceeds from sales 13,027 101,804
Proceeds from maturities and principal reductions on mortgage-backed securities 20,570 18,083
Purchases (13,905) (80,538)
Purchase of regulatory stock (3,737) (2,675)
Redemption of regulatory stock 2,741 4,015
Net increase in loans (42,783) (35,325)
Proceeds from bank-owned life insurance 0 205
Purchase of bank-owned life insurance 0 (2,000)
Purchase of premises and equipment (484) (337)
Proceeds from sales of fixed assets and foreclosed real estate owned 777 387
Acquisition, net of cash and cash equivalents acquired 0 11,112
Net cash (used in) provided by investing activities (23,794) 14,731
CASH FLOWS FROM FINANCING ACTIVITIES    
Net increase in deposits 12,505 44,072
Deposits sold (13,659) 0
Net increase (decrease) in short-term borrowings 14,418 (21,456)
Repayments of other borrowings (20,230) (18,439)
Proceeds from other borrowings 20,000 0
Stock options exercised 766 160
Purchase of treasury stock (1,290) (447)
Cash dividends paid (4,015) (3,436)
Net cash provided by financing activities 8,495 454
(Decrease) increase in cash and cash equivalents (2,859) 23,123
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 17,174 10,010
CASH AND CASH EQUIVALENTS, END OF PERIOD 14,315 33,133
Supplemental Disclosure of Cash Flow Information    
Cash payments for: Interest on deposits and borrowings 2,792 2,566
Cash payments for: Income taxes paid, net of refunds 1,825 1,135
Supplemental Schedule of Noncash Investing Activities    
Transfers of loans to foreclosed real estate and repossession of other assets 112 2,953
Cash dividends declared $ 4,037 3,567
Merger with Delaware Bancshares, Inc.    
Noncash assets acquired: Securities available-for-sale   208,488
Noncash assets acquired: Regulatory stock   279
Noncash assets acquired: Loans   116,674
Noncash assets acquired: Premises and equipment, net   7,292
Noncash assets acquired: Accrued interest receivable   1,626
Noncash assets acquired: Bank-owned life insurance   14,762
Noncash assets acquired: Core deposit intangibles   449
Noncash assets acquired: Deferred tax assets   3,034
Noncash assets acquired: Other assets   2,934
Noncash assets acquired: Goodwill   1,964
Total Noncash assets acquired   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
Total Liabilities assumed   356,463
Net Noncash Assets Acquired   1,039
Cash Acquired   $ 14,977

Basis of Presentation
v3.8.0.1
Basis of Presentation
9 Months Ended
Sep. 30, 2017
Basis of Presentation [Abstract]  
Basis of Presentation

1.         Basis of Presentation

The unaudited consolidated financial statements include the accounts of Norwood Financial Corp. (Company) and its wholly-owned subsidiary, Wayne Bank (Bank) and the Bank’s wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., Norwood Settlement Services, LLC,  and WTRO Properties, Inc.   On June 13, 2017, the Company approved and adopted a Plan of Dissolution for Norwood Settlement Services, LLC.  All activity prior to the dissolution is included in the consolidated financial statements.  All significant intercompany transactions have been eliminated in consolidation. 



The accompanying unaudited consolidated  financial statements have been prepared in conformity with generally accepted accounting principles for interim financial statements and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period.  Actual results could differ from those estimates.  The financial statements reflect, in the opinion of management, all normal, recurring adjustments necessary to present fairly the financial position and results of operations of the Company.  The operating results for the three and nine month periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 or any other future interim period.



Stock Dividend

On August 8, 2017, the Company declared a 50% stock dividend to stockholders of record on August 22, 2017 which was payable September 15, 2017.  Share and per share information has been adjusted for this dividend.



These statements should be read in conjunction with the consolidated financial statements and related notes which are incorporated by reference in the Company’s Annual Report on Form 10-K for the year-ended December 31, 2016.




Basis of Presentation (Policy)
v3.8.0.1
Basis of Presentation (Policy)
9 Months Ended
Sep. 30, 2017
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., Norwood Settlement Services, LLC,  and WTRO Properties, Inc.   On June 13, 2017, the Company approved and adopted a Plan of Dissolution for Norwood Settlement Services, LLC.  All activity prior to the dissolution is included in the consolidated financial statements.  All significant intercompany transactions have been eliminated in consolidation. 



The accompanying unaudited consolidated  financial statements have been prepared in conformity with generally accepted accounting principles for interim financial statements and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period.  Actual results could differ from those estimates.  The financial statements reflect, in the opinion of management, all normal, recurring adjustments necessary to present fairly the financial position and results of operations of the Company.  The operating results for the three and nine month periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 or any other future interim period.

Stock Dividend

Stock Dividend

On August 8, 2017, the Company declared a 50% stock dividend to stockholders of record on August 22, 2017 which was payable September 15, 2017.  Share and per share information has been adjusted for this dividend.


Basis of Presentation (Details)
v3.8.0.1
Basis of Presentation (Details)
9 Months Ended
Sep. 30, 2017
Basis of Presentation [Abstract]  
Dividends Payable, Date Declared Aug. 08, 2017
Common Stock, Dividend Rate, Percentage 50.00%
Dividends Payable, Date of Record Aug. 22, 2017
Dividends Payable, Date to be Paid Sep. 15, 2017

Earnings Per Share
v3.8.0.1
Earnings Per Share
9 Months Ended
Sep. 30, 2017
Earnings Per Share [Abstract]  
Earnings Per Share

2.         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 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.  All share and per share information has been restated to reflect the retroactive effect of the 50% stock dividend declared on August 8, 2017.





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

(in thousands)

 

Three Months Ended

 

Nine Months Ended



 

September 30,

 

September 30,



 

2017

 

2016

 

2017

 

2016

Weighted average shares outstanding

 

6,239 

 

5,967 

 

6,239 

 

5,685 

Less: Unvested restricted shares

 

(28)

 

(21)

 

(28)

 

(21)

Basic EPS weighted average shares outstanding

 

6,211 

 

5,946 

 

6,211 

 

5,664 



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Basic EPS weighted average shares outstanding

 

6,211 

 

5,946 

 

6,211 

 

5,664 

Add:  Dilutive effect of stock options

 

52 

 

14 

 

56 

 

14 

Diluted EPS weighted average shares outstanding

 

6,263 

 

5,960 

 

6,267 

 

5,678 



 

 

 

 

 

 

 

 

As of September 30, 2017, 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 $30.52 per share on September 30, 2017. 

 

As of September 30, 2016, there were 16,500 anti-dilutive options based on Norwood's closing price of $19.38 per share, after adjusting for the 50% stock dividend declared on August 8, 2017.


Earnings Per Share (Policy)
v3.8.0.1
Earnings Per Share (Policy)
9 Months Ended
Sep. 30, 2017
Earnings 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 are determined using the treasury stock method.


Earnings Per Share (Tables)
v3.8.0.1
Earnings Per Share (Tables)
9 Months Ended
Sep. 30, 2017
Earnings 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

 

Nine Months Ended



 

September 30,

 

September 30,



 

2017

 

2016

 

2017

 

2016

Weighted average shares outstanding

 

6,239 

 

5,967 

 

6,239 

 

5,685 

Less: Unvested restricted shares

 

(28)

 

(21)

 

(28)

 

(21)

Basic EPS weighted average shares outstanding

 

6,211 

 

5,946 

 

6,211 

 

5,664 



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Basic EPS weighted average shares outstanding

 

6,211 

 

5,946 

 

6,211 

 

5,664 

Add:  Dilutive effect of stock options

 

52 

 

14 

 

56 

 

14 

Diluted EPS weighted average shares outstanding

 

6,263 

 

5,960 

 

6,267 

 

5,678 



 

 

 

 

 

 

 

 




Earnings Per Share (Narrative) (Details)
v3.8.0.1
Earnings Per Share (Narrative) (Details) - $ / shares
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Earnings Per Share [Abstract]      
Common Stock, Dividend Rate, Percentage 50.00%    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 0 16,500  
Share price $ 30.52 $ 19.38 $ 22.09

Earnings Per Share (Schedule Of Weighted Average Shares Outstanding Used In The Computations Of Basic And Diluted Earnings Per Share) (Details)
v3.8.0.1
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 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Earnings Per Share [Abstract]        
Weighted average shares outstanding 6,239 5,967 6,239 5,685
Less: Unvested restricted shares (28) (21) (28) (21)
Basic EPS weighted average shares outstanding 6,211 5,946 6,211 5,664
Basic EPS weighted average shares outstanding 6,211 5,946 6,211 5,664
Add: Dilutive effect of stock options 52 14 56 14
Diluted EPS weighted average shares outstanding 6,263 5,960 6,267 5,678

Stock-Based Compensation
v3.8.0.1
Stock-Based Compensation
9 Months Ended
Sep. 30, 2017
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

3.         Stock-Based Compensation



No awards were granted during the nine-month period ending September 30, 2017. As of September 30, 2017, there was $23,000 of total unrecognized compensation cost related to non-vested options granted in 2016 under the 2014 Equity Incentive Plan, which will be fully amortized by December 31, 2017. Compensation costs related to stock options amounted to $69,000 and $53,000 during the nine-month periods ended September 30, 2017 and 2016, respectively.



A summary of stock options from all plans, adjusted for stock dividends declared, is shown below.





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

Weighted

 

 

 

 

 



 

 

Average Exercise

 

Weighted Average

 

Aggregate



 

 

Price

 

Remaining

 

Intrinsic Value



Options

 

Per Share

 

Contractual Term

 

($000)



 

 

 

 

 

 

 

 

 

 

Outstanding at January 1, 2017

225,669 

 

$

19.46 

 

5.6 

Yrs.

 

$

932 

Granted

 -

 

 

 -

 

 -

 

 

 

 -

Exercised

(28,950)

 

 

26.46 

 

3.1 

Yrs.

 

 

 -

Forfeited

(1,000)

 

 

28.55 

 

8.2 

Yrs.

 

 

 -

Outstanding at September 30, 2017

195,719 

 

$

18.38 

 

5.2 

Yrs.

 

$

2,377 



 

 

 

 

 

 

 

 

 

 

Exercisable at September 30, 2017

171,719 

 

$

17.82 

 

4.7 

Yrs.

 

$

2,181 



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 stock price was $30.52 as of September 30, 2017 and $22.09 as of December 31, 2016, after adjusting for the 50% stock dividend declared on August 8, 2017.



A summary of the Company’s restricted stock activity for the nine-month periods ended September 30, 2017 and 2016 is as follows, after adjusting for the 50% stock dividend declared on August 8, 2017:









 

 

 

 

 

 

 

 

 



2017

 

2016



 

 

 

Weighted-Average

 

 

 

 

Weighted-Average



Number of

 

 

Grant Date

 

Number of

 

 

Grant Date



Restricted Stock

 

 

Fair Value

 

Restricted Stock

 

 

Fair Value

Non-vested, January 1,

28,035 

 

$

20.64 

 

28,035 

 

$

19.21 

Granted

 -

 

 

 -

 

 -

 

 

 -

Vested

 -

 

 

 -

 

 -

 

 

 -

Forfeited

 -

 

 

 -

 

 -

 

 

 -

Non-vested, September 30,

28,035 

 

$

20.64 

 

28,035 

 

$

19.21 



The expected future compensation expense relating to the 28,035 shares of non-vested restricted stock outstanding as of September 30, 2017 is $471,000.  This cost will be recognized over the remaining vesting period of 4.25  years.  Compensation costs related to restricted stock amounted to $107,000 and $67,000 during the nine-month periods ended September 30, 2017 and 2016, respectively.


Stock-Based Compensation (Tables)
v3.8.0.1
Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2017
Stock-Based Compensation [Abstract]  
Summary of Stock Option Activity



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

Weighted

 

 

 

 

 



 

 

Average Exercise

 

Weighted Average

 

Aggregate



 

 

Price

 

Remaining

 

Intrinsic Value



Options

 

Per Share

 

Contractual Term

 

($000)



 

 

 

 

 

 

 

 

 

 

Outstanding at January 1, 2017

225,669 

 

$

19.46 

 

5.6 

Yrs.

 

$

932 

Granted

 -

 

 

 -

 

 -

 

 

 

 -

Exercised

(28,950)

 

 

26.46 

 

3.1 

Yrs.

 

 

 -

Forfeited

(1,000)

 

 

28.55 

 

8.2 

Yrs.

 

 

 -

Outstanding at September 30, 2017

195,719 

 

$

18.38 

 

5.2 

Yrs.

 

$

2,377 



 

 

 

 

 

 

 

 

 

 

Exercisable at September 30, 2017

171,719 

 

$

17.82 

 

4.7 

Yrs.

 

$

2,181 



Summary of Restricted Stock Activity



 

 

 

 

 

 

 

 

 



2017

 

2016



 

 

 

Weighted-Average

 

 

 

 

Weighted-Average



Number of

 

 

Grant Date

 

Number of

 

 

Grant Date



Restricted Stock

 

 

Fair Value

 

Restricted Stock

 

 

Fair Value

Non-vested, January 1,

28,035 

 

$

20.64 

 

28,035 

 

$

19.21 

Granted

 -

 

 

 -

 

 -

 

 

 -

Vested

 -

 

 

 -

 

 -

 

 

 -

Forfeited

 -

 

 

 -

 

 -

 

 

 -

Non-vested, September 30,

28,035 

 

$

20.64 

 

28,035 

 

$

19.21 




Stock-Based Compensation (Narrative) (Details)
v3.8.0.1
Stock-Based Compensation (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Thousands
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Options, Granted 0      
Compensation expense related to stock options $ 69 $ 53    
Share price $ 30.52 $ 19.38 $ 22.09  
Non-vested stock outstanding 28,035 28,035 28,035 28,035
Future compensation expense of non-vested restricted stock outstanding $ 471      
Non-vested restricted stock recognition period 4 years 3 months      
Compensation expense related to restricted stock $ 107 $ 67    
Common Stock, Dividend Rate, Percentage 50.00%      
Restricted Stock [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Compensation cost $ 107 $ 67    
Norwood Financial Corp 2014 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation cost related to non-vested options granted $ 23      

Stock-Based Compensation (Summary of Stock Option Activity) (Details)
v3.8.0.1
Stock-Based Compensation (Summary of Stock Option Activity) (Details) - USD ($)
$ / shares in Units, $ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Stock-Based Compensation [Abstract]    
Options, Outstanding, beginning of period 225,669  
Options, Granted 0  
Options, Exercised (28,950)  
Options, Forfeited (1,000)  
Options, Outstanding, end of period 195,719 225,669
Options, Exercisable, end of period 171,719  
Weighted Average Exercise Price Per Share, Outstanding, beginning of period $ 19.46  
Weighted Average Exercise Price Per Share, Granted  
Weighted Average Exercise Price Per Share, Exercised 26.46  
Weighted Average Exercise Price Per Share, Forfeited 28.55  
Weighted Average Exercise Price Per Share, Outstanding, end of period 18.38 $ 19.46
Weighted Average Exercise Price Per Share, Exercisable, end of period $ 17.82  
Weighted Average Remaining Contractual Term, Outstanding 5 years 2 months 12 days 5 years 7 months 6 days
Weighted Average Remaining Contractual Term, Exercised During Period 3 years 1 month 6 days  
Weighted Average Remaining Contractual Term, Forfeited During Period 8 years 2 months 12 days  
Weighted Average Remaining Contractual Term, Exercisable at End of Period 4 years 8 months 12 days  
Aggregate Intrinsic Value, Outstanding, beginning of period $ 932  
Aggregate Intrinsic Value, Granted in Period 0  
Aggregate Intrinsic Value, Exercised in Period 0  
Aggregate Intrinsic Value, Forfeited in Period 0  
Aggregate Intrinsic Value, Outstanding, end of period 2,377 $ 932
Aggregate Intrinsic Value, Exercisable at end of period $ 2,181  

Stock-Based Compensation (Summary of Restricted Stock Activity) (Details)
v3.8.0.1
Stock-Based Compensation (Summary of Restricted Stock Activity) (Details) - $ / shares
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Stock-Based Compensation [Abstract]    
Restricted stock Non-vested, beginning balance 28,035 28,035
Restricted stock, granted 0
Restricted stock, vested 0
Restricted stock, forfeited 0
Restricted stock Non-vested, ending balance 28,035 28,035
Restricted stock Non-vested, weighted-average grant date fair value, beginning balance $ 20.64 $ 19.21
Restricted stock, granted, weighted-average grant date fair value
Restricted stock, vested, weighted-average grant date fair value
Restricted stock, forfeited, weighted-average grant date fair value
Restricted stock Non-vested, weighted-average grant date fair value, ending balance $ 20.64 $ 19.21

Accumulated Other Comprehensive Income (Loss)
v3.8.0.1
Accumulated Other Comprehensive Income (Loss)
9 Months Ended
Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Abstract]  
Accumulated Other Comprehensive Income (Loss)

4.         Accumulated Other Comprehensive Income (Loss)



The following table presents the changes in accumulated other comprehensive income (loss)               (in thousands) by component net of tax for the three months and nine months ended September 30, 2017 and 2016:













 

 



 

 



Unrealized gains (losses) on



available for sale



securities (a)

Balance as of  December 31, 2016

$

(4,119)

Other comprehensive income before reclassification

 

2,960 

Amount reclassified from accumulated other comprehensive loss

 

(110)

Total other comprehensive income

 

2,850 

Balance as of September 30, 2017

$

(1,269)



 

 



 

 



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 June 30, 2017

$

(1,532)

Other comprehensive income before reclassification

 

349 

Amount reclassified from accumulated other comprehensive loss

 

(86)

Total other comprehensive income

 

263 

Balance as of September 30, 2017

$

(1,269)



 

 



 

 



 

 



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 

















 (a)  All amounts are net of tax.  Amounts in parentheses indicate debits.











The following table presents significant amounts reclassified out of each component of accumulated other comprehensive income (loss) (in thousands) for the three months and nine months ended September 30, 2017 and 2016:















 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

Amount Reclassified

 

 



 

From Accumulated

 

Affected Line Item in



 

Other

 

Consolidated



 

Comprehensive

 

Statements

Details about other comprehensive income

 

Income (Loss) (a)

 

of Income



 

 

 

 

 

 

 

 

 



 

 

Three months ended

 

 



 

 

September 30,

 

 



 

 

2017

 

 

 

2016

 

 

Unrealized gains on available for sale securities

 

$

129 

 

 

$

 -

 

Net realized gains on sales of securities



 

 

(43)

 

 

 

 -

 

Income tax expense



 

$

86 

 

 

$

 -

 

 



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

 

Nine months ended

 

 



 

 

September 30,

 

 



 

 

2017

 

 

 

2016

 

 

Unrealized gains on available for sale securities

 

$

167 

 

 

$

269 

 

Net realized gains on sales of securities



 

 

(57)

 

 

 

(91)

 

Income tax expense



 

$

110 

 

 

$

178 

 

 



(a)  Amounts in parentheses indicate debits to net income


Accumulated Other Comprehensive Income (Loss) (Tables)
v3.8.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
9 Months Ended
Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Abstract]  
Summary Of Changes In Accumulated Other Comprehensive Income (Loss)











 

 



 

 



Unrealized gains (losses) on



available for sale



securities (a)

Balance as of  December 31, 2016

$

(4,119)

Other comprehensive income before reclassification

 

2,960 

Amount reclassified from accumulated other comprehensive loss

 

(110)

Total other comprehensive income

 

2,850 

Balance as of September 30, 2017

$

(1,269)



 

 



 

 



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 June 30, 2017