Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 240

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 240
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 1,472 |     |                | 92 |
| Construction                    |     |                   |     — |     |                 | — |     |            |     — |     |                |  — |
| Commercial and industrial       |     |                   |   159 |     |                 | — |     |            |   159 |     |                |  — |
| Consumer and other              |     |                   |     — |     |                 | — |     |            |     — |     |                |  — |
| Total                           |     | $                 | 1,949 |     | $               | — |     | $          | 1,949 |     | $              | 92 |

F-54

A loan is considered “substandard” if it is inadequately protected by the current net worth and
paying capacity of the obligor or of the collateral pledged, if any. “Substandard” loans include those characterized by the “distinct possibility” that the Company will sustain “some loss” if the deficiencies are
not corrected. Loans classified as “doubtful” have all of the weaknesses inherent in those classified “substandard,” with the added characteristic that the weaknesses present make “collection or liquidation in
full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Loans classified as “loss” are those considered “uncollectible” and of such little value that
their continuance as assets without the establishment of a specific allowance for credit losses is not warranted. Loans that do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned
categories but possess weaknesses are designated as “special mention” by our management. Loans that are performing as agreed are classified as “pass”.

F-55

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of June 30, 2025 (in thousands); as well as gross charge-offs (in thousands) for the six months ended June 30, 2025:

| Real estate: one- to four-family residential       |     | Year of Origination 
 2025                |        |     | 2024 |        |     | 2023 |        |     | 2022 |        |     | 2021 |        |     | Prior |        |