Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 80

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 80
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 of $371,000 primarily on leasehold improvements at our Lancaster administrative office, partially offset by depreciation and amortization of fixed assets of $224,000 and the sale of the Oxford Branch that had a book value of $135,000 at
the time of the sale.

Bank owned life insurance increased by $218,000, or 2.6%, to $8.5 million at December 31, 2024 from
$8.2 million at December 31, 2023, primarily due to the earnings on the existing policies.

Restricted stock decreased by
$465,000, or 18.0%, to $2.1 million at December 31, 2024 from $2.6 million at December 31, 2023 due to the redemption of Federal Home Loan Bank of Pittsburgh stock in conjunction with decreased borrowings from the Federal Home
Loan Bank of Pittsburgh during 2024.

Deposits and Borrowings. Total deposits increased $21.2 million, or 6.4%, to
$354.2 million at December 31, 2024 from $333.0 million at December 31, 2023. The increase in our deposits reflected a $28.2 million increase in certificates of deposit, and a $5.4 million increase in
noninterest-bearing demand accounts, partially offset by a $8.6 million decrease in money market accounts, a $2.3 million decrease in interest-bearing demand accounts and a $1.4 million decrease in savings accounts. The increase in
certificates of deposit was due to brokered deposits increasing in 2024 to increase liquidity. Noninterest-bearing demand

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deposits increased primarily due to increased deposit customers from commercial accounts offering cash management services. The money market, interest-bearing and savings accounts decreased as
the result of customers needing their liquidity for business needs and moving funds to higher yielding bank products.

Total borrowings
from the Federal Home Loan Bank of Pittsburgh decreased $12.6 million, or 22.9%, to $42.5 million at December 31, 2024 from $55.1 million at December 31, 2023 due to $12.6 million of repayments on maturing and
amortizing advances. There were no new Federal Home Loan Bank of Pittsburgh borrowings during 2024.

Stockholders’ Equity. Stockholders’ equity increased $1.7 million, or 3.6%, to $48.7 million at