Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 246

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 246
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 the shortfall. Under the Basel III rules, banks must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The required capital conservation buffer is 2.50%. On January 1, 2023, the Company adopted ASC 326. Regulatory capital rules permitted the Bank to phase-in the day-one effects of adopting ASC 326 over a three-year transition period. The Bank elected to take the phase-in for the amount of $140,000. The following tables present actual and required capital ratios as of June 30, 2025 and December 31, 2024 under the Basel III Capital Rules. Bank capital levels required to be considered well capitalized are based upon prompt corrective action regulations. Actual and required capital amounts (in thousands) and ratios of the Bank are presented below at quarter-end.

| June 30, 2025                            |     | Actual |        |     |       |       |   |     | For Capital       
 Adequacy Purposes |        |     |       |      |   |     | For Capital         
 Adequacy Purposes   
 with Capital Buffer |        |     |       |       |   |     | To be Well        
 Capitalized under 
 Prompt Corrective 
 Action Provisions |        |     |       |       |   |
|:-----------------------------------------|:----|:-------|-------:|:----|:------|------:|:--|:----|:------------------|-------:|:----|:------|-----:|:--|:----|:--------------------|-------:|:----|:------|------:|:--|:----|:------------------|-------:|:----|:------|------:|:--|
|                                          |     | Amount |        |     | Ratio |       |   |     | Amount            |        |     | Ratio |      |   |     | Amount              |        |     | Ratio |       |   |     | Amount            |        |     | Ratio |       |   |
| Total capital (to risk-weighted assets)  |     | $      | 48,466 |     |       | 13.39 | % |     | $                 | 28,966 |     |       | 8.00 | % |     | $                   | 38,017 |     |       | 10.50 | % |     | $                 | 36,207 |     |       | 10.00 | % |