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Nature of Operations

12 Months Ended

Dec. 31, 2019

Nature of Operations [Abstract]

Nature of Operations

NOTE 1 - NATURE OF OPERATIONS



Norwood Financial Corp (Company) is a one bank holding company. Wayne Bank (Bank) is a

wholly-owned subsidiary of the Company. The Bank is a state-chartered bank headquartered in Honesdale, Pennsylvania. The Company derives substantially all of its income from bank-related services which include interest earnings on commercial mortgages, residential real estate mortgages, commercial and consumer loans, as well as interest earnings on investment securities and fees from deposit services to its customers. The Company is subject to regulation and supervision by the Federal Reserve Board while the Bank is subject to regulation and supervision by the Federal Deposit Insurance Corporation and the Pennsylvania Department of Banking and Securities.



Revenue Recognition



Under ASC Topic 606, management determined that the primary sources of revenue emanating from interest and dividend income on loans and investments along with noninterest revenue resulting from investment securities gains, loans servicing, gains on loans sold and earnings on bank-owned life insurance are not within the scope of this Topic.



The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the year ended December 31:










(dollars in thousands)		2019			2018
Noninterest Income
  In-scope of Topic 606:
     Service charges on deposit accounts	$	301		$	263
     ATM Fees		384			398
     Overdraft Fees		1,380			1,505
     Safe deposit box rental		94			96
     Loan related service fees		614			515
     Debit card		1,424			1,330
     Fiduciary activities		610			589
     Commissions on mutual funds & annuities		141			185
     Other income		500			782
  Noninterest Income (in-scope of Topic 606)		5,448			5,663
  Out-of-scope of Topic 606:
     Net realized gains on sales of securities		254			213
     Loan servicing fees		77			48
     Gain on sales of loans		169			15
     Earnings on and proceeds from bank-owned life insurance		830			1,126
  Noninterest Income (out-of-scope of Topic 606)		1,330			1,402
Total Noninterest Income	$	6,778		$	7,065









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- Definition

The entire disclosure for the nature of an entity's business, major products or services, principal markets including location, and the relative importance of its operations in each business and the basis for the determination, including but not limited to, assets, revenues, or earnings. For an entity that has not commenced principal operations, disclosures about the risks and uncertainties related to the activities in which the entity is currently engaged and an understanding of what those activities are being directed toward.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=99393423&loc=d3e5967-108592

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-URI http://asc.fasb.org/topic&trid=2134479

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- References

No definition available.

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