Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 245

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 245
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 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 June 30, 2025, the fair value consisted of the recorded investment in the collateral dependent loans of $396,000, which was net of a valuation allowance of $71,000. 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. Collateral dependent individually evaluated loans are included in Loans Receivable in the table below, which details the fair value of all the Company’s financial instruments. For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2025 and December 31, 2024 are as follows (in thousands):

| June 30, 2025                                            |     | Total |        |     | Quoted      
 Prices in   
 Active      
 Markets for 
 Identical   
 Assets      
 (Level 1)   |       |     | Significant 
 Other       
 Observable  
 Inputs      
 (Level 2)   |        |     | Significant  
 Unobservable 
 Inputs       
 (Level 3)    |   |
|:---------------------------------------------------------|:----|:------|-------:|:----|:------------|------:|:----|:------------|-------:|:----|:-------------|:--|
| Agency bonds                                             |     | $     | 17,011 |     | $           |     — |     | $           | 17,011 |     | $            | — |
| Corporate bonds                                          |     |       |  6,157 |     |             |     — |     |             |  6,157 |     |              | — |
| Treasury securities                                      |     |       |  5,927 |     |             |