Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 247

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 247
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. As monthly fees are typically incurred by the customer throughout the month, the fees should be recognized upon completion of the month since the performance obligations have been met for those services. Account analysis service charges and fees are recorded on a monthly basis on the last day of the month. The Company has determined that all performance obligations for account analysis fees are met during the month. Debit Card Income Debit card income consists of interchange fees from consumer debit card networks and other card related services. Interchange rates are set by the card networks. Interchange fees are based on purchase volumes and other factors and are recognized as transactions occur. F-67

Gains on Sale of Other Real Estate Owned The sale of other real estate owned is currently recognized on the closing date of sale when all performance obligations have been met, and control of the asset has been transferred to the buyer. Any gains are included in noninterest expenses in the consolidated statements of income. For the Company, there are no other material revenue streams within the scope of Topic 606. The following table presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2025 and 2024 (in thousands):

| Noninterest income in scope of Topic 606        |     | 2025 | Three Months Ended 
           June 30, |     | 2024 |     |     | 2025 | Six Months Ended 
         June 30, |     | 2024 |     |
|:------------------------------------------------|:----|:-----|-------------------:|:----|:-----|----:|:----|:-----|-----------------:|:----|:-----|----:|
| Service charges on deposit accounts             |     | $    |                 51 |     | $    |  42 |     | $    |               99 |     | $    |  87 |
| Debit card income                               |     |      |                 55 |     |      |  53 |     |      |              107 |     |      | 103 |
| Other service charges                           |     |      |                 14 |     |      |  20 |     |      |               25 |     |      |  37 |
| Other noninterest income                        |     |      |                102 |     |      |  25 |     |      |              177 |     |      |