Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 101

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 101
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 based on estimates and the ultimate losses may vary from such estimates as more information becomes available or conditions change. We assess
the allowance for credit losses on a quarterly basis and make provisions for credit losses in order to maintain the allowance. Based on our evaluation of the above factors, we recorded a $40,000 provision for credit losses for the three months ended
June 30, 2025 compared to $17,000 for the three months ended June 30, 2024. The increase in provision for credit losses was primarily due to a provision of $16,000 for unfunded commitments for the three months ended June 30, 2025 as
compared to a recovery of $13,000 for the

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three months ended June 30, 2024. The allowance for credit losses on loans was $4.5 million, or 1.25%, of loans outstanding at June 30, 2025 and $4.4 million, or 1.25%, of loans outstanding at December 31, 2024. To the best of our knowledge, we have recorded our best estimate of expected losses in the loan portfolio and for unfunded commitments at June 30, 2025. However, future changes in the factors described above, including, but not limited to, actual loss experience with respect to our loan portfolio could result in material increases in our provision for credit losses. In addition, the PADOB and the FDIC, as an integral part of their examination process, will periodically review our allowance for credit losses, and as a result of such reviews, we may have to adjust our allowance for credit losses. However, regulatory agencies are not directly involved in establishing the allowance for credit losses as the process is our responsibility and any increase or decrease in the allowance is the responsibility of management. Noninterest income. Noninterest income information is as follows.

|                                     |     | Three Months           
 Ended June 30,         
 2025                   
 (Dollars in thousands) |     |     | 2024 |     |   |     | Change 
 Amount |    |   |     | Percent |       |   |
|:------------------------------------|:----|:-----------------------|----:|:----|:-----|----:|:--|:----|:-------|---:|:--|:----|:--------|------:|:--|
| Service charges on deposit accounts |     | $                      |  51 |     | $    |