Company: NWFL
Filing Date: 2025-09-19
Form Type: S-4
Source: 0001193125-25-208580
Chunk: 87

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-09-19
Form: S-4
Chunk 87
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 |   803 |     |        | (53 | ) |     |         | (6.6 | ) |
| Total noninterest expenses     |     | $                      | 10,197 |     | $    | 9,803 |     | $      | 394 |   |     |         |    4 | % |

Noninterest expense increased $394,000, or 4.0%, to $10.2 million in 2024 from $9.8 million in 2023. The increase in noninterest expense was primarily the result of increases in salaries and employee benefits expense of $165,000, professional fees of $165,000 and data and item processing expense of $135,000. Salaries and employee benefits expense increased $165,000 primarily due to the hiring of additional staff and annual salary increases. Professional fees increased $165,000 primarily due to legal expenses increasing in 2024. Data and item processing increased $135,000, primarily due to investment in our information technology infrastructure. Income Tax Expense. Income tax expense decreased $70,000, or 12.8%, to $475,000 for 2024 from $545,000 for 2023 due to the decrease in income before income tax expense. The effective tax rate was 21.1% in 2024 compared to 22.1% in 2023. The decrease in the effective tax rate was attributable to a decrease in nondeductible expenses. Average Balances and Yields. The following table sets forth average balance sheets, average yields and costs, and certain other information for the years indicated. No tax-equivalentyield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrualloans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or interest expense.

| Interest-earning assets:      |     | For the Years Ended December 31, 
 2024                             
 Average                          
 Outstanding                      
 Balance                          
 (Dollars in thousands)           |         |     | Interest |        |     | Average    
 Yield/Rate |      |   |     | 2023        
 Average     
 Outstanding 
 Balance     |         |     | Interest |        |     | Average    
 Yield/Rate |      |   |
|:------------------------------|:----|:---------------------------------|--------: