Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 222

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 222
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                | 12.28 |
| Granted                         |     |           |       — |   |     |                  |     — |
| Vested                          |     |           | (21,622 | ) |     |                  | 12.28 |
| Forfeited                       |     |           |       — |   |     |                  |     — |
| Non-vested at December 31, 2023 |     |           |  86,493 |   |     | $                | 12.28 |
| Granted                         |     |           |   2,975 |   |     |                  | 12.20 |
| Vested                          |     |           | (21,622 | ) |     |                  | 12.28 |
| Forfeited                       |     |           |       — |   |     |                  |     — |
| Non-vested at December 31, 2024 |     |           |  67,846 |   |     | $                | 12.28 |

The fair value of the vested shares during the years ended December 31,2024 and 2023 was $661,000 and $266,000, respectively. 13. Regulatory Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes as of December 31, 2024, the Bank met all capital adequacy requirements to which it was subject. Prompt corrective action regulations provide five classifications; well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2024 and 2023, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since those notifications that management believes have changed the Bank’s category. The capital conservation buffer is