Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 46

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 46
---
 funding sources to support future growth, our revenues may not increase proportionately to cover our costs. In this case, operating margins and profitability would be adversely affected. Turbulence in the capital and
credit markets may adversely affect our liquidity and financial condition and the willingness of certain counterparties and clients to do business with us. Our ability to borrow from other financial institutions or to access the debt or equity
capital markets on favorable terms or at all could be adversely affected by disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations.

Our holding company is dependent on liquidity through payments, including dividends, from our bank subsidiary, which are subject to restrictions.

Norwood is a holding company, separate from its wholly-owned subsidiary, Wayne Bank, and must provide for its own liquidity.
Norwood depends on dividends, distributions and other payments from Wayne Bank to fund dividend payments and stock repurchases and to fund all payments on obligations. The Federal Reserve requires a bank holding company to act as a source of
financial and managerial strength for its subsidiary banks. The Federal Reserve could require us to commit resources to Wayne Bank when doing so is not otherwise in the interests of our shareholders or creditors. Wayne Bank is subject to laws that
restrict dividend payments or authorize regulatory bodies to prohibit or reduce the flow of funds from it to us. If Wayne Bank is unable to pay dividends to us, we may not be able to service our debt, pay dividends on our common stock or engage in
stock repurchases. A reduction or elimination of dividends could adversely affect the market price of our common stock and would adversely affect our business, financial condition, results of operations and prospects. In addition, our right to
participate in a distribution of assets upon Wayne Bank’s liquidation or reorganization is subject to the prior claims of Wayne Bank’s creditors, including its depositors.

Difficult economic and market conditions can adversely affect the financial services industry and may materially and adversely affect us.

Our operations are sensitive to general business and economic conditions in the U.S. If the growth of the U.S. economy slows, or if the economy
worsens or enters a recession, our growth and profitability could be constrained. In addition, economic conditions in foreign countries can affect the stability of global financial markets, which could impact the U.S. economy and financial markets.
Weak economic conditions, which could directly impact our operations, are characterized by inflation, fluctuations in debt and equity capital markets, including a lack of liquidity and/or depressed prices in the secondary