Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 228

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 228
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 Value) The estimated fair value of individually evaluated collateral dependent loans is based on the value of the underlying collateral or the value of the underlying collateral, less estimated cost to sell, as appropriate. Collateral is generally real estate; however, collateral may include vehicles, equipment, inventory, accounts receivable, and/or other assets. The value of real estate collateral is generally determined using a market valuation approach based on an appraisal conducted by an independent, licensed appraiser. The value of other assets may also be based on an appraisal, market quotations, aging schedules or other sources. Any fair value adjustments are recorded in the period incurred as a provision for credit losses on the Consolidated Statements of Income. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. At December 31, 2024, the fair value consisted of the recorded investment in the collateral dependent loans of $396,000, which was net of a valuation allowance of $92,000. At December 31, 2023, there were no individually evaluated collateral dependent loans with a specific reserve. For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2024 and 2023 are as follows (in thousands):

| December 31, 2024                                        |     | Total |        |     | Quoted      
 Prices in   
 Active      
 Markets for 
 Identical   
 Assets      
 (Level 1)   |        |     | Significant 
 Other       
 Observable  
 Inputs      
 (Level 2)   |        |     | Significant  
 Unobservable 
 Inputs       
 (Level 3)    |   |
|:---------------------------------------------------------|:----|:------|-------:|:----|:------------|-------:|:----|:------------|-------:|:----|:-------------|:--|
| Agency bonds                                             |     | $     | 20,165 |     | $           |      — |     | $           | 20,165 |     | $            | — |
| Corporate bonds                                          |     |       |  4,821 |     |             |      — |     |             |  4,821 |     |              | — |
| Treasury securities                                      |     |       | 21,950 |     |             | 21,950 |     |             |      — |     |              | — |
| Mortgage-backed securities                               |