Norwood Financial announces results

HONESDALE, PA — Norwood Financial Corp. and its subsidiary Wayne Bank have announced earnings for the three months ended December 31, 2017 of $157,000 compared to $2,346,000 earned in the corresponding period of 2016. The decrease in earnings is due to the $3,060,000 of non-recurring additional tax expense attributable to the revaluation of the company’s net deferred tax asset as a result of the Tax Cuts and Jobs Act (the “Act”). The company’s core operating results (which excludes the non-recurring tax expense related to the revaluation of the deferred tax asset) for the three-month period improved $871,000 to $3,217,000. For the year ended December 31, 2017, net income totaled $8,198,000, an increase of $1,487,000 from the $6,711,000 earned in the prior year. For the year of 2017, the company’s core operating results increased $4,547,000 to $11,258,000.

Among other things, the Act reduces the corporate tax rate from a maximum of 35% to a flat 21% rate effective January 1, 2018. Prior to December 22, 2017, the company had a net deferred tax asset totaling $7.6 million, based on the pre-Act federal tax rate of 35%. As a result of the reduction in the corporate income tax rate to 21%, the company revalued its net deferred tax asset as of December 31, 2017. Beginning in 2018, the company’s earnings are expected to benefit from the lower corporate income tax rate.


Privacy Policy & Terms of Use

Copyright 2017 Stuart Communications, Inc.

PO Box 150, 93 Erie Avenue

Narrowsburg NY 12764

(845) 252-7414

All Rights Reserved

Comment Here