Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 112

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 112
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   |     |      | (394 | ) |     |            | (245 | ) |
| Change in net interest income      |     | $                      |   49 |   |     | $    |  876 |   |     | $          |  925 |   |

Non-PerformingAssets and Allowance for Credit Losses Non-performingloans. Non-performingloans are reviewed on a weekly basis by management and again by our credit committee on a monthly basis. Nonaccrual loans are loans for which collectability is questionable and, therefore, interest on such loans will no longer be recognized on an accrual basis. All loans that become 90 days or more delinquent are placed on nonaccrual status unless the loan is well secured and in the process of collection. When loans are placed on nonaccrual status, unpaid accrued interest is fully reversed, and further income is recognized only to the extent received on a cash basis or cost recovery method. Real estate owned .When we acquire real estate as a result of foreclosure, the real estate is classified as real estate owned. The real estate owned is recorded at the lower of carrying amount or fair value, less estimated costs to sell. Soon after acquisition, we order a new appraisal to determine the current market value of the property. Any excess of the recorded value of the loan satisfied over the market value of the property is charged against the allowance for credit losses. After acquisition, all costs incurred in maintaining the property are expensed. Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value less estimated costs to sell. We had no real estate owned at June 30, 2025 or as of December 31, 2024. 69

Non-PerformingAssets.The following table sets forth information regarding our non-performingassets.

|                                               |     | June 30,              
 2025                  |      |   |     | December 31, 
 2024         |       |   |
|:----------------------------------------------|:----|:----------------------|-----:|:--|:----|:-------------|------:|:--|
|                                               |     | -Dollars in thousands |      |   |     |              |       |   |
| Nonaccrual loans:                             |     |                       |      |   |     |              |       |   |
| Real estate:                                  |     |                       |      |