Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 234

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 234
---
 | (21  | ) |     |                   |      — |     |            | —    |   |     |            |    785 |     |            | (21  | ) |
| Mortgage-backed securities          |     |                     |  1,445 |     |            | (30  | ) |     |                   |      — |     |            | —    |   |     |            |  1,445 |     |            | (30  | ) |
| Collateralized mortgage obligations |     |                     |    160 |     |            | (17  | ) |     |                   |  1,704 |     |            | (161 | ) |     |            |  1,864 |     |            | (178 | ) |
| Total                               |     | $                   | 11,126 |     | $          | (331 | ) |     | $                 | 13,133 |     | $          | (480 | ) |     | $          | 24,259 |     | $          | (811 | ) |

F-50

As of June 30, 2025 and December 31, 2024, the mortgage-backed securities and collateralized mortgage obligations included in the securities portfolio consisted of securities issued by U.S. government sponsored agencies. There were no private label mortgage-backed securities or collateralized mortgage obligations held in the securities portfolio as of June 30, 2025 and December 31, 2024. At June 30, 2025, 40 agency bonds, two corporate bonds and 34 collateralized mortgage obligations were in an unrealized loss position. In analyzing an issuer’s financial condition, management considers whether downgrades by bond rating agencies have occurred and industry analysts’ reports. As of June 30, 2025, management believes that the estimated fair value of securities disclosed above is primarily dependent upon the movement in market interest rates particularly given the negligible inherent credit risk associated with these securities. Although the fair value will fluctuate as the market interest rates move, management believes that these fair values will recover as the underlying portfolios mature and are reinvested in market yielding investments. Additionally, all securities remain highly rated and all issuers have continued to make timely payments of interest and principal. As the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost basis, which may