Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 228

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 228
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|                                                   |     | December 31, |       |     |      |     |   |
| Noninterest income in scope of Topic 606          |     |         2024 |       |     | 2023 |     |   |
| Service charges on deposit accounts               |     |            $ |   204 |     |    $ | 176 |   |
| Debit card income                                 |     |              |   209 |     |      | 220 |   |
| Other service charges                             |     |              |    72 |     |      | 104 |   |
| Gain (loss) on disposal of premises and equipment |     |              |   494 |     |      | (52 | ) |
| Other noninterest income                          |     |              |   124 |     |      | 133 |   |
| Noninterest income (in scope for Topic 606)       |     |              | 1,103 |     |      | 581 |   |
| Noninterest income (out of scope for Topic 606)   |     |              |   210 |     |      | 204 |   |
| Total noninterest income                          |     |            $ | 1,313 |     |    $ | 785 |   |

Contract Balances A contract assets balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transaction activity, or standard month-end revenue accruals. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2024 and 2023, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize as an expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a