Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 86

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 86
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 225 |     |      |   183 |     |        |  42 |   |     |         |   23 |   |
| Pennsylvania shares tax        |     |                        |    300 |     |      |   294 |     |        |   6 |   |     |         |    2 |   |
| Debit card expenses            |     |                        |    163 |     |      |   162 |     |        |   1 |   |     |         |  0.6 |   |
| Other                          |     |                        |    750 |     |      |   803 |     |        | (53 | ) |     |         | (6.6 | ) |
| Total noninterest expenses     |     | $                      | 10,197 |     | $    | 9,803 |     | $      | 394 |   |     |         |    4 | % |

Noninterest expense increased $394,000, or 4.0%, to $10.2 million in 2024 from $9.8 million in 2023. The increase in noninterest expense was primarily the result of increases in salaries and employee benefits expense of $165,000, professional fees of $165,000 and data and item processing expense of $135,000. Salaries and employee benefits expense increased $165,000 primarily due to the hiring of additional staff and annual salary increases. Professional fees increased $165,000 primarily due to legal expenses increasing in 2024. Data and item processing increased $135,000, primarily due to investment in our information technology infrastructure. Income Tax Expense. Income tax expense decreased $70,000, or 12.8%, to $475,000 for 2024 from $545,000 for 2023 due to the decrease in income before income tax expense. The effective tax rate was 21.1% in 2024 compared to 22.1% in 2023. The decrease in the effective tax rate was attributable to a decrease in nondeductible expenses. Average Balances and Yields. The following table sets forth average balance sheets, average yields and costs, and certain other information for the years indicated. No tax-equivalentyield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrualloans were included in the computation of average balances. The