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Nature of Operations

12 Months Ended

Dec. 31, 2020

Nature of Operations [Abstract]

Nature of Operations

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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)		2020			2019
Noninterest Income
In-scope of Topic 606:
Service charges on deposit accounts		$	377		$	336
ATM Fees			457			384
Overdraft Fees			985			1,380
Safe deposit box rental			102			94
Loan related service fees			1,288			614
Debit card			1,656			1,424
Fiduciary activities			682			610
Commissions on mutual funds & annuities			122			141
Other income			540			465
Noninterest Income (in-scope of Topic 606)			6,209			5,448
Out-of-scope of Topic 606:
Net realized gains on sales of securities			71			254
Loan servicing fees			128			77
Gain on sales of loans			527			169
Earnings on and proceeds from bank-owned life insurance			845			830
Noninterest Income (out-of-scope of Topic 606)			1,571			1,330
Total Noninterest Income		$	7,780		$	6,778

 

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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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