10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________ 

Commission file number   0-28364

Norwood Financial Corp.

(Exact name of Registrant as specified in its charter)

Pennsylvania	23-2828306
(State or other jurisdiction of Incorporation or organization)	(I.R.S. employer identification no.)

717 Main Street, Honesdale, Pennsylvania	18431
(Address of principal executive offices)	(Zip Code)

(570) 253-1455

(Registrant’s telephone number, including area code)

NA

(Former name, former address and former fiscal year, if changed since last report))

Indicate by check (x) whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  x    No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer  x
Non-accelerated filer o	Smaller reporting company   o
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): o Yes   x No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding as of August 1, 2012
Common stock, par value $0.10 per share	3,277,607

1

Explanatory Note

The purpose of this Amendment No. 1 to our Quarterly Report Form 10-Q for the period ended June, 30, 2012 (“Form 10-Q”), as filed with the Securities and Exchange Commission on August 8, 2012, is to furnish Exhibit 101 to the Form 10-Q, which provides certain items from our Form 10-Q formatted in Extensible Business Reporting Language (“XBRL”).

No other changes have been made to the Form 10-Q other than the furnishing of the exhibit described above. This Amendment No. 1 does not reflect subsequent events occurring after the original date of the Form 10-Q or modify or update in any way disclosures made in the Form 10-Q.

Pursuant to Rule 406T of Regulations S-T, the Interactive Data Files in Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

Item 6.  Exhibits

No.	Description
3(i)	Articles of Incorporation of Norwood Financial Corp.(1)
3(ii)	Bylaws of Norwood Financial Corp. (2)
4.0	Specimen Stock Certificate of Norwood Financial Corp. (1)
10.1	Employment Agreement with Lewis J. Critelli (2)
10.2	Change in Control Severance Agreement with William S. Lance(2)
10.3	Norwood Financial Corp. Stock Option Plan (4)
10.4	Salary Continuation Agreement between the Bank and William W. Davis, Jr. (3)
10.5	Salary Continuation Agreement between the Bank and Lewis J. Critelli (3)
10.7	1999 Directors Stock Compensation Plan (3)
10.8	Salary Continuation Agreement between the Bank and Joseph A. Kneller (5)
10.9	Salary Continuation Agreement between the Bank and John H. Sanders (5)
10.10	2006 Stock Option Plan (6)
10.11	First and Second Amendments to Salary Continuation Agreement with William W. Davis, Jr. (7)
10.12	First and Second Amendments to Salary Continuation Agreement with Lewis J. Critelli (7)
10.14	First and Second Amendments to Salary Continuation Agreement with Joseph A. Kneller (7)
10.15	First and Second Amendments to Salary Continuation Agreement with John H. Sanders (7)
31	Rule 13a-14(a)/15d-14(a) Certification of CEO and CFO *
32	Certification pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of Sarbanes Oxley Act of 2002 *
101.INS	XBRL Instance Document **
101.SCH	XBRL Schema Document **
101.CAL	XBRL Calculation Linkbase Document **
101.LAB	XBRL Labels Linkbase Document **
101.PRE	XBRL Presentation Linkbase Document **
101.DEF	XBRL Definition Linkbase Document **

______________________

*

Previously filed with Norwood Financial Corp.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 (filed on August 8, 2012).

**

Attached as Exhibits 101 to this Form 10-Q/A Amendment No. 1 are documents formatted in XBRL (Extensible Business Reporting Language).  Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability.

2

(1)	Incorporated herein by reference into this document from the Exhibits to Form 10, Registration  Statement initially filed with the Commission on April 29, 1996, Registration No. 0-28364
(2)	Incorporated by reference into this document from the identically numbered exhibits to the  Registrant’s Form 10-K filed with the Commission on March 15, 2010.
(3)	Incorporated herein by reference to the identically numbered exhibits of the Registrant’s Form 10-K filed with the Commission on March 23, 2000.
(4)	Incorporated by reference into this document from the Exhibits to Form S-8 filed with the Commission on August 14, 1998, File No. 333-61487.
(5)	Incorporated herein by reference to the identically numbered exhibit to the Registrant’s Form 10-K filed with the Commission on March 22, 2004.
(6)	Incorporated by reference to this document from Exhibit 4.1 to Registrant’s Registration Statement on Form S-8 (File No. 333-134831) filed with the Commission on June 8, 2006.
(7)	Incorporated herein by reference from the Exhibits to the Registrant’s Current Report on Form 8-K filed on April 4, 2006.

3

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		NORWOOD FINANCIAL CORP.
Date:	September 5, 2012	By:	/s/ Lewis J. Critelli
			Lewis J. Critelli
			President and Chief Executive Officer
			(Principal Executive Officer)
Date:	September 5, 2012	By:	/s/ William S. Lance
			William S. Lance
			Executive Vice President, and Chief Financial Officer
			(Principal Financial Officer)

4

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Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) (Significant Unobservable Inputs (Level 3) [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 14,258	$ 15,309
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	12,990	12,399
Foreclosed Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 1,268	$ 2,910

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Loans Receivable and Allowance for Loan Losses (Loans Acquired and Accounted for in Accordance with ASC 310-30) (Details) (USD $)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Loans Receivable and Allowance for Loan Losses [Abstract]
Outstanding Balance	$ 1,346,000	$ 1,412,000
Carrying Amount	1,224,000	1,246,000
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease)	$ 0
Allowance for Loan Losses Reversed	0

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Stock-Based Compensation (Details) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011
Stock-Based Compensation [Abstract]
Options, Outstanding, beginning of period	209,914
Options, Exercised in Period	(4,775)
Options, Forfeited in Period	(12,225)
Options, Outstanding, end of period	192,914	209,914
Options, Exercisable at Period End	164,914
Weighted Average Exercise Price Per Share, Outstanding,	$ 28.43
Weighted Average Exercise Price Per Share, Exercised in Period	$ 20.72
Weighted Average Exercise Price Per Share, Forfeited in Period	$ 29.65
Weighted Average Exercise Price Per Share, Outstanding,	$ 28.54	$ 28.43
Weighted Average Exercise Price Per Share, Exercisable at End of Period	$ 28.72
Weighted Average Remaining Contractual Term, Outstanding,	5 years 11 months 25 days	6 years 4 months 20 days
Weighted Average Remaining Contractual Term, Granted in Period	0 years
Weighted Average Remaining Contractual Term, Exercised During Period	0 years 10 months 19 days
Weighted Average Remaining Contractual Term, Forfeited During Period	5 years 3 months 14 days
Weighted Average Remaining Contractual Term, Outstanding,	5 years 11 months 25 days	6 years 4 months 20 days
Weighted Average Remaining Contractual Term, Exercisable at End of Period	5 years 4 months 20 days
Aggregate Intrinsic Value, Outstanding,	$ 113
Aggregate Intrinsic Value, Exercised in Period	31
Aggregate Intrinsic Value, Outstanding,	170	113
Aggregate Intrinsic Value, Exercisable at End of Period	142
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 65
Amortization Date of Unrecognized Compensation Cost, Related to Non-Vested Options Granted in 2011	Dec. 31, 2012
Share Price	$ 28.50	$ 27.47	$ 26.15

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Loans Receivable and Allowance for Loan Losses (Loan Portfolio Summarized by the Past Due Status) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 469,415	$ 445,616
31-60 Days Past Due	1,575	1,458
61-90 Days Past Due	81	3,440
Greater than 90 Days Past Due and still accruing	3
Non-Accrual	8,878	7,815
Total Past Due and Non-Accrual	10,537	12,713
Total Loans	479,952	458,329
Residential Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	145,026	143,550
31-60 Days Past Due	435	160
61-90 Days Past Due	69	1,351
Non-Accrual	2,521	3,087
Total Past Due and Non-Accrual	3,025	4,598
Total Loans	148,051	148,148
Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	268,298	255,613
31-60 Days Past Due	986	1,015
61-90 Days Past Due		1,524
Greater than 90 Days Past Due and still accruing	2
Non-Accrual	5,972	4,324
Total Past Due and Non-Accrual	6,960	6,863
Total Loans	275,258	262,476
Construction Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	15,816	10,532
31-60 Days Past Due	65
61-90 Days Past Due		555
Total Past Due and Non-Accrual	65	555
Total Loans	15,881	11,087
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	26,131	22,086
31-60 Days Past Due	2	194
Non-Accrual	385	404
Total Past Due and Non-Accrual	387	598
Total Loans	26,518	22,684
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	14,144	13,835
31-60 Days Past Due	87	89
61-90 Days Past Due	12	10
Greater than 90 Days Past Due and still accruing	1
Total Past Due and Non-Accrual	100	99
Total Loans	$ 14,244	$ 13,934

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Basis of Presentation

6 Months Ended

Jun. 30, 2012

Basis of Presentation [Abstract]

Basis of Presentation

1.         Basis of Presentation

            The unaudited consolidated financial statements include the accounts of Norwood Financial Corp. (Company) and its wholly-owned subsidiary, Wayne Bank (Bank) and the Bank's wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., Norwood Settlement Services, LLC,  and WTRO Properties.   All significant intercompany transactions have been eliminated in consolidation. 

            The accompanying unaudited consolidated financial statements have been prepared in conformity with generally accepted accounting principles for interim financial statements and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period.  Actual results could differ from those estimates.  The financial statements reflect, in the opinion of management, all normal, recurring adjustments necessary to present fairly the financial position and results of operations of the Company.  The operating results for the six month period ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012 or any other future interim period.

            These statements should be read in conjunction with the consolidated financial statements and related notes which are incorporated by reference in the Company's Annual Report on Form 10-K for the year-ended December 31, 2011.

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Securities (Securities by Contractual Maturity) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Securities [Abstract]
Available for Sale, Amortized Cost, Due in one year or less	$ 10,209
Available for Sale, Amortized Cost, Due after one year through five years	7,466
Available for Sale, Amortized Cost, Due after five years through ten years	17,363
Available for Sale, Amortized Cost, Due after ten years	29,760
Available for Sale, Amortized Cost, Mortgage-backed securities- government sponsored agencies	74,944
Available for Sale, Amortized Cost, Total	139,742
Available for Sale, Fair Value, Due in one year or less	10,313
Available for Sale, Fair Value, Due after one year through five years	7,690
Available for Sale, Fair Value, Due after five years through ten years	18,255
Available for Sale, Fair Value, Due after ten years	31,361
Available for Sale, Fair Value, Mortgage-backed securities- government sponsored agencies	76,889
Available for Sale, Fair Value, Total	144,508
Held to Maturity, Amortized Cost, Due after one year through five years	172
Held to Maturity, Amortized Cost, Total	172
Held to Maturity, Fair Value, Due after one year through five years	177
Held to Maturity, Fair Value, Total	$ 177

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Securities (Investments' Gross Unrealized Losses and Fair Value) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of Investments [Line Items]
Less than 12 Months, Fair Value	$ 12,272	$ 6,681
Less than 12 Months, Unrealized Losses	(74)	(58)
12 Months or More, Fair Value		15
12 Months or More, Unrealized Losses		(1)
Total, Fair Value	12,272	6,696
Total, Unrealized Losses	(74)	(59)
US Government Agencies [Member]
Schedule of Investments [Line Items]
Less than 12 Months, Fair Value	998
Less than 12 Months, Unrealized Losses	(2)
12 Months or More, Fair Value
12 Months or More, Unrealized Losses
Total, Fair Value	998
Total, Unrealized Losses	(2)
States and political subdivisions [Member]
Schedule of Investments [Line Items]
Less than 12 Months, Fair Value	3,254
Less than 12 Months, Unrealized Losses	(42)
12 Months or More, Fair Value
12 Months or More, Unrealized Losses
Total, Fair Value	3,254
Total, Unrealized Losses	(42)
Corporate obligations [Member]
Schedule of Investments [Line Items]
Less than 12 Months, Fair Value	1,457	4,152
Less than 12 Months, Unrealized Losses	(5)	(54)
12 Months or More, Fair Value
12 Months or More, Unrealized Losses
Total, Fair Value	1,457	4,152
Total, Unrealized Losses	(5)	(54)
Mortgage-backed securities-government sponsored entities [Member]
Schedule of Investments [Line Items]
Less than 12 Months, Fair Value	6,563	2,495
Less than 12 Months, Unrealized Losses	(25)	(2)
12 Months or More, Fair Value
12 Months or More, Unrealized Losses
Total, Fair Value	6,563	2,495
Total, Unrealized Losses	(25)	(2)
Equity securities-financial services [Member]
Schedule of Investments [Line Items]
Less than 12 Months, Fair Value		34
Less than 12 Months, Unrealized Losses		(2)
12 Months or More, Fair Value		15
12 Months or More, Unrealized Losses		(1)
Total, Fair Value		49
Total, Unrealized Losses		$ (3)
Less than 12 Months [Member]
Schedule of Investments [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	14
12 Months or More [Member]
Schedule of Investments [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	0

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Securities (Gross Realized Gains and Losses on Sales of Securities Available-for-Sale) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Securities [Abstract]
Gross realized gains	$ 285	$ 15	$ 687	$ 228
Gross realized losses		(3)		(4)
Net realized gain	285	12	687	224
Proceeds from Sale of Available-for-sale Securities	$ 7,716	$ 4,157	$ 18,349	$ 10,344

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Loans Receivable and Allowance for Loan Losses (Composition of Loans Receivable) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Gross	$ 479,952	$ 458,329
Percent of Loans	100.00%	100.00%
Deferred fees (net)	(531)	(422)
Allowance for loan losses	(5,775)	(5,458)
Net loans receivable	473,646	452,449
Residential Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Gross	148,051	148,148
Percent of Loans	30.80%	32.30%
Allowance for loan losses	(1,559)	(1,257)	(1,096)	(1,167)
Commercial Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Gross	275,258	262,476
Percent of Loans	57.40%	57.30%
Allowance for loan losses	(3,691)	(3,838)	(3,675)	(3,976)
Construction Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Gross	15,881	11,087
Percent of Loans	3.30%	2.40%
Allowance for loan losses	(87)	(72)	(91)	(110)
Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Gross	26,518	22,684
Percent of Loans	5.50%	5.00%
Allowance for loan losses	(263)	(147)	(258)	(171)
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Gross	14,244	13,934
Percent of Loans	3.00%	3.00%
Allowance for loan losses	$ (175)	$ (144)	$ (147)	$ (192)

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 4,444	$ 3,144
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	750	650
Depreciation	280	226
Amortization of intangible assets	80	27
Deferred income taxes	(259)	(8)
Net amortization of securities premiums and discounts	580	345
Net realized gain on sales of securities	(687)	(224)
Net increase in value of life insurance	(263)	(180)
Loss on sale of foreclosed real estate	27
Net gain on sale of mortgage loans	(74)	(241)
Mortgage loans originated for sale	(2,269)	(6,530)
Proceeds from sale of mortgage loans originated for sale	2,343	6,771
Compensation expense related to stock options	66	82
Increase in accrued interest receivable and other assets	985	(182)
Increase in accrued interest payable and other liabilities	(1,441)	841
Net cash provided by operating activities	4,562	4,721
CASH FLOWS FROM INVESTING ACTIVITIES
Securities available for sale: Proceeds from sales	18,349	10,344
Securities available for sale: Proceeds from maturities and principal reductions on mortgage-backed securities	17,259	15,918
Securities available for sale: Purchases	(28,582)	(18,769)
Redemption of FHLB stock	350	328
Net (increase) decrease in loans	(22,883)	8,527
Acquisition, net of cash and cash acquired		4,544
Purchase of bank premises and equipment	(172)	(63)
Proceeds from sales of premises and equipment and foreclosed real estate	2,569
Net cash (used in) provided by investing activities	(13,110)	20,829
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits	8,390	8,990
Net increase (decrease) in short-term borrowings	5,398	(1,128)
Repayments of other borrowings	(91)	(3,015)
Stock options exercised	99
Tax benefit of stock options exercised	11
Acquisition of treasury stock	(320)	(207)
Cash dividends paid	(1,966)	(1,604)
Net cash provided by financing activities	11,521	3,036
Increase (decrease) in cash and cash equivalents	2,973	28,586
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	21,423	16,625
CASH AND CASH EQUIVALENTS, END OF PERIOD	24,396	45,211
Supplemental Disclosure of Cash Flow Information
Cash payments for: Interest paid to depositors and borrowers	2,398	2,610
Cash payments for: Income taxes paid, net of refunds	1,559	1,407
Supplemental Schedule of Noncash Investing Activities
Investment purchases	1,619
Transfer of loans to foreclosed real estate and repossession of other assets	$ 954	$ 1,036

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Loans Receivable and Allowance for Loan Losses (Changes in the Accretable Yield for Purchased Credit Impaired Loans) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Loans Receivable and Allowance for Loan Losses [Abstract]
Balance,	$ 171
Accretion	(47)
Balance,	$ 124

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Fair Value Measurements (Quantitative Information about Level 3 Fair Value Measurements) (Details) (Fair Value [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 12,990
Foreclosed Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 1,268

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and due from banks	$ 9,135	$ 8,974
Interest bearing deposits with banks	15,261	12,449
Cash and cash equivalents	24,396	21,423
Securities available for sale, at fair value	144,720	150,263
Securities held to maturity, fair value 2012: $177, 2011: $177	172	171
Loans receivable (net of unearned income)	479,421	457,907
Less: Allowance for loan losses	5,775	5,458
Net loans receivable	473,646	452,449
Investment in Federal Home Loan Bank Stock, at cost	3,243	3,593
Bank premises and equipment, net	7,371	7,479
Bank owned life insurance	12,119	11,887
Financial assets: Accrued interest receivable	2,416	2,468
Foreclosed real estate owned	1,268	2,910
Goodwill	9,715	9,715
Other intangibles	720	800
Other assets	5,081	5,656
TOTAL ASSETS	684,867	668,814
LIABILITIES
Deposits: Non-interest bearing demand	82,525	71,959
Deposits: Interest-bearing	451,632	453,808
Total Deposits	534,157	525,767
Short-term borrowings	27,192	21,794
Other borrowings	27,579	27,670
Financial liabilities: Accrued interest payable	1,335	1,321
Other liabilities	4,363	4,201
TOTAL LIABILITIES	594,626	580,753
STOCKHOLDERS' EQUITY
Common stock, $.10 par value per share, authorized 10,000,000; shares issued 2012: 3,371,849 shares, 2011: 3,371,866 shares	337	337
Surplus	24,696	24,660
Retained earnings	64,788	62,308
Treasury stock at cost: 2012: 94,242 shares, 2011: 87,370 shares	(2,739)	(2,559)
Accumulated other comprehensive income	3,159	3,315
TOTAL STOCKHOLDERS' EQUITY	90,241	88,061
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 684,867	$ 668,814

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Consolidated Statements of Changes in Stockholders' Equity (USD $) In Thousands, except Share data	Common Stock [Member]	Surplus [Member]	Retained Earnings [Member]	Treasury [Member]	Accumulated Other Comprehensive Income [Member]	Total
Balance, at Dec. 31, 2011	$ 337	$ 24,660	$ 62,308	$ (2,559)	$ 3,315	$ 88,061
Shares, Issued, Beginning Balance at Dec. 31, 2011	3,371,866			87,370
Net Income			4,444			4,444
Other comprehensive income					(156)	(156)
Cash dividends declared $.60 per share			(1,964)			(1,964)
Acquisition of treasury stock				(320)		(320)
Acquisition of treasury stock, shares				11,647
Compensation expense related to stock options		66				66
Stock options exercised		(41)		140		99
Stock options exercised, shares				(4,775)		(4,775)
Tax benefit on stock options		11				11
North Penn exchange adjustment, shares	(17)
Balance, at Jun. 30, 2012	$ 337	$ 24,696	$ 64,788	$ (2,739)	$ 3,159	$ 90,241
Shares, Issued, Ending Balance at Jun. 30, 2012	3,371,866			94,242

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Loans Receivable and Allowance for Loan Losses (Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	$ 6,078,000	$ 6,807,000
Impaired Financing Receivable, with Related Allowance, Recorded Investment	8,031,000	6,823,000
Impaired Financing Receivable, Recorded Investment	14,109,000	13,630,000
Unpaid Principal Balance, With no related allowance recorded	6,202,000	6,978,000
Unpaid Principal Balance, With an allowance recorded	8,031,000	6,823,000
Unpaid Principal Balance, Total	14,233,000	13,801,000
Average Recorded Investment, With no related allowance recorded	6,576,000	6,113,000
Average Recorded Investment, With an allowance recorded	7,379,000	9,670,000
Average Recorded Investment, Total	13,955,000	15,783,000
Interest Income Recognized, With no related allowance recorded	42,000	357,000
Interest Income Recognized, With an allowance recorded	106,000	204,000
Interest Income Recognized, Total	148,000	561,000
Financing Receivable, Modifications, Recorded Investment	7,100,000	7,200,000
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down	991,000,000	1,200,000
Financing Receivable, Modifications, Subsequent Default, Recorded Investment		0
New Loans Identified as Troubled Debt Restructurings		0
Residential Real Estate Loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	273,000	343,000
Impaired Financing Receivable, Recorded Investment	273,000	343,000
Unpaid Principal Balance, With no related allowance recorded	297,000	385,000
Unpaid Principal Balance, Total	297,000	385,000
Average Recorded Investment, With no related allowance recorded	289,000	245,000
Average Recorded Investment, Total	289,000	245,000
Interest Income Recognized, With no related allowance recorded	2,000	7,000
Interest Income Recognized, Total	2,000	7,000
Commercial Real Estate Loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	5,420,000	5,866,000
Impaired Financing Receivable, with Related Allowance, Recorded Investment	8,031,000	6,823,000
Impaired Financing Receivable, Recorded Investment	13,451,000	12,689,000
Unpaid Principal Balance, With no related allowance recorded	5,520,000	5,995,000
Unpaid Principal Balance, With an allowance recorded	8,031,000	6,823,000
Unpaid Principal Balance, Total	13,551,000	12,818,000
Associated Allowance	1,120,000	1,231,000
Average Recorded Investment, With no related allowance recorded	5,902,000	5,372,000
Average Recorded Investment, With an allowance recorded	7,379,000	9,670,000
Average Recorded Investment, Total	13,281,000	15,042,000
Interest Income Recognized, With no related allowance recorded	40,000	340,000
Interest Income Recognized, With an allowance recorded	106,000	204,000
Interest Income Recognized, Total	146,000	544,000
Commercial Loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	385,000	598,000
Impaired Financing Receivable, Recorded Investment	385,000	598,000
Unpaid Principal Balance, With no related allowance recorded	385,000	598,000
Unpaid Principal Balance, Total	385,000	598,000
Average Recorded Investment, With no related allowance recorded	385,000	496,000
Average Recorded Investment, Total	385,000	496,000
Interest Income Recognized, With no related allowance recorded		10,000
Interest Income Recognized, Total		$ 10,000

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Loans Receivable and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2012

Loans Receivable and Allowance for Loan Losses [Abstract]

Composition of Loans Receivable [Table Text Block]

	Types of loans
	(dollars in thousands)         June 30, 2012                   December 31, 2011
Real Estate-Residential	$148,051	30.8%	$148,148	32.3%
Commercial	275,258	57.4	262,476	57.3
Construction	15,881	3.3	11,087	2.4
Commercial, financial and agricultural	26,518	5.5	22,684	5.0
Consumer loans to individuals	14,244	3.0	13,934	3.0
Total loans	479,952	100.0%	458,329	100.0%
Deferred fees (net)	(531)		(422)
Allowance for loan losses	(5,775)		(5,458)
Net loans receivable	$473,646		$452,449

Changes In The Accretable Yield For Purchased Credit Impaired Loans [Table Text Block]

Balance at beginning of period	$171
Accretion	(47)
Reclassification and other	-
Balance at end of period	$124

Loans Acquired And Accounted For in Accordance With ASC 310-30 [Table Text Block]

	June 30, 2012	December 31, 2011
	Acquired Loans with Specific Evidence of Deterioration in Credit Quality	Acquired Loans with Specific Evidence of Deterioration in Credit Quality
Outstanding Balance	$ 1,346	$ 1,412
Carrying Amount	1,224	1,246

Allowance for Loan Losses and Recorded Investment in Financing Receivables [Table Text Block]

		Real Estate Loans
		Residential			Commercial			Construction		Commercial Loans			Consumer Loans		Total
June 30, 2012								(In thousands)
Individually     evaluated for     impairment	$	-		$	12,501		$	-	$	385	$		-	$	12,886
Loans acquired     with     deteriorated     credit quality		273			951			-		-			-		1,224
Collectively     evaluated for     impairment		147,778			261,806			15,881		26,133			14,244		465,842
Total Loans	$	148,051	$			275,258	$	15,881	$	26,518	$	14,244		$	479,952
			Real Estate Loans
		Residential			Commercial			Construction		Commercial Loans			Consumer Loans		Total
December 31,       2011								(In thousands)
Individually     evaluated for     impairment	$	-		$	11,786		$	-	$	598	$		-	$	12,384
Loans acquired with deteriorated credit quality		343			903			-		-			-		1,246
Collectively     evaluated for     impairment		147,805			249,787			11,087		22,086			13,934		444,699
Total Loans	$	148,148		$	262,476		$	11,087	$	22,684	$		13,934	$	458,329

(In thousands)		Residential Real Estate		Commercial Real Estate		Construction		Commercial		Consumer		Total
Beginning balance, December 31, 2011	$	1,257	$	3,838	$	72	$	147	$	144	$	5,458
Charge Offs		(308)		(96)		(7)		-		(33)		(444)	)
Recoveries		1		-		-		-		10		11
Provision Expense		609		(51)		22		116		54		750
Ending balance,      June 30, 2012	$	1,559	$	3,691	$	87	$	263	$	175	$	5,775
Ending balance individually   evaluated for impairment	$	-	$	1,120		-		-		-	$	1,120
Ending balance collectively   evaluated for impairment	$	1,559	$	2,571	$	87	$	263	$	175	$	4,655

(In thousands)		Residential Real Estate		Commercial Real Estate		Construction		Commercial		Consumer		Total
Beginning balance, December 31, 2010	$	1,167	$	3,976	$	110	$	171	$	192	$	5,616
Charge Offs		(226)		(764)		-		(2)		(41)		(1,033)	)
Recoveries		7		-		-		5		22		34
Provision Expense		148		463		(19)		84		(26)		650
Ending balance,      June 30, 2011	$	1,096	$	3,675	$	91	$	258	$	147	$	5,267
Ending balance individually   evaluated for impairment	$	-	$	1,678		-		-		-	$	1,678
Ending balance collectively   evaluated for impairment	$	1,096	$	1,997	$	91	$	258	$	147	$	3,589

Impaired Loans and Related Interest Income by Loan Portfolio Class [Table Text Block]

		Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Recorded Investment		Interest Income Recognized
June 30, 2012 With no related allowance recorded:					(In thousands)
Real Estate Loans
Residential	$	273	$	297	$	-	$	289	$	2
Commercial		5,420		5,520		-		5,902		40
Commercial Loans		385		385		-		385		-
Total		6,078		6,202		-		6,576		42
With an allowance recorded:
Real Estate Loans
Commercial		8,031		8,031		1,120		7,379		106
Total		8,031		8,031		1,120		7,379		106
Total:
Real Estate loans
Residential		273		297		-		289		2
Commercial		13,451		13,551		1,120		13,281		146
Commercial Loans		385		385		-		385		-
Total Impaired Loans	$	14,109	$	14,233	$	1,120	$	13,955	$	148

Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating [Table Text Block]

The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful and Loss within the internal risk rating system as of June 30, 2012 and December 31, 2011 (in thousands):

		Pass		Special Mention		Substandard		Doubtful		Total
June 30, 2012
Commercial real estate loans	$	250,726	$	9,825	$	14,707	$	-	$	275,258
Commercial loans		25,842		238		438		-		26,518
Total	$	276,568	$	10,063	$	15,145	$	-	$	301,776

		Pass		Special Mention		Substandard		Doubtful		Total
December 31,  2011
Commercial real estate loans	$	237,407	$	11,009	$	14,060	$	-	$	262,476
Commercial loans		21,598		427		659		-		22,684
Total	$	259,005	$	11,436	$	14,719	$	-	$	285,160

For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. Nonperforming loans include loans on nonaccrual status and accruing loans which are past due over ninety days. The following table presents the recorded investment in the loan classes based on payment activity as of June 30, 2012 and December 31, 2011 (in thousands):

June 30, 2012		Performing		Nonperforming		Total
Residential real estate loans	$	145,530	$	2,521	$	148,051
Construction		15,881		-		15,881
Consumer loans		14,244		-		14,244
Total	$	175,655	$	2,521	$	178,176

December 31, 2011		Performing		Nonperforming		Total
Residential real estate loans	$	145,061	$	3,087	$	148,148
Construction		11,087		-		11,087
Consumer loans		13,934		-		13,934
Total	$	170,082	$	3,087	$	173,169

Loan Portfolio Summarized by the Past Due Status [Table Text Block]

		Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non-Accrual		Total Loans
June 30, 2012
Real Estate loans
Residential	$	145,026	$	435	$	69	$	-	$	2,521	$	3,025	$	148,051
Commercial		268,298		986		-		2		5,972		6,960		275,258
Construction		15,816		65		-		-		-		65		15,881
Commercial  loans		26,131		2		-		-		385		387		26,518
Consumer  loans		14,144		87		12		1		-		100		14,244
Total	$	469,415	$	1,575	$	81	$	3	$	8,878	$	10,537	$	479,952
		Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non-Accrual		Total Loans
December 31, 2011
Real Estate loans
Residential	$	143,550	$	160	$	1,351	$	-	$	3,087	$	4,598	$	148,148
Commercial		255,613		1,015		1,524		-		4,324		6,863		262,476
Construction		10,532		-		555		-		-		555		11,087
Commercial  loans		22,086		194		-		-		404		598		22,684
Consumer  loans		13,835		89		10		-		-		99		13,934
Total	$	445,616	$	1,458	$	3,440	$	-	$	7,815	$	12,713	$	458,329

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Loans Receivable and Allowance for Loan Losses (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	$ 479,952	$ 458,329
Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	276,568	259,005
Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	10,063	11,436
Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	15,145	14,719
Performing Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	175,655	170,082
Nonperforming Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	2,521	3,087
Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	275,258	262,476
Commercial Real Estate Loans [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	250,726	237,407
Commercial Real Estate Loans [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	9,825	11,009
Commercial Real Estate Loans [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	14,707	14,060
Commercial Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	26,518	22,684
Commercial Loans [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	25,842	21,598
Commercial Loans [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	238	427
Commercial Loans [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	438	659
Residential Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	148,051	148,148
Residential Real Estate Loans [Member] | Performing Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	145,530	145,061
Residential Real Estate Loans [Member] | Nonperforming Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	2,521	3,087
Construction Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	15,881	11,087
Construction Real Estate Loans [Member] | Performing Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	15,881	11,087
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	14,244	13,934
Consumer Loans [Member] | Performing Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross	$ 14,244	$ 13,934

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Earnings Per Share (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Earnings Per Share [Abstract]
Basic EPS weighted average shares outstanding	3,276,000	2,937,000	3,280,000	2,852,000
Dilutive effect of stock options	4,000	2,000	3,000	3,000
Diluted EPS weighted average shares outstanding	3,280,000	2,939,000	3,283,000	2,855,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			98,275	165,150
Share Price	$ 28.50	$ 26.15	$ 28.50	$ 26.15	$ 27.47

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Consolidated Statements of Changes in Stockholders' Equity (parenthetical) (USD $)	6 Months Ended
	Jun. 30, 2012
Consolidated Statements of Changes in Stockholders' Equity
Common Stock, Dividends, Per Share, Declared	$ 0.6

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Consolidated Balance Sheets (parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Consolidated Balance Sheets
Held-to-maturity Securities, Fair Value	$ 177	$ 177
Common Stock, Par or Stated Value Per Share	$ 0.1	$ 0.1
Common Stock, Shares Authorized	10,000,000	10,000,000
Common Stock, Shares, Issued	3,371,849	3,371,866
Treasury Stock, Shares	94,242	87,370

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Basis of Presentation (Policy)

6 Months Ended

Jun. 30, 2012

Basis of Presentation [Abstract]

Basis of Accounting, Policy [Policy Text Block]

            The unaudited consolidated financial statements include the accounts of Norwood Financial Corp. (Company) and its wholly-owned subsidiary, Wayne Bank (Bank) and the Bank's wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., Norwood Settlement Services, LLC,  and WTRO Properties.   All significant intercompany transactions have been eliminated in consolidation. 

            The accompanying unaudited consolidated financial statements have been prepared in conformity with generally accepted accounting principles for interim financial statements and with instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period.  Actual results could differ from those estimates.  The financial statements reflect, in the opinion of management, all normal, recurring adjustments necessary to present fairly the financial position and results of operations of the Company.  The operating results for the six month period ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012 or any other future interim period.

            These statements should be read in conjunction with the consolidated financial statements and related notes which are incorporated by reference in the Company's Annual Report on Form 10-K for the year-ended December 31, 2011.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 01, 2012
Document and Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Entity Registrant Name	NORWOOD FINANCIAL CORP
Entity Central Index Key	0001013272
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		3,277,607
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

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Earnings Per Share (Policy)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share, Policy [Policy Text Block]

Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
INTEREST INCOME
Loans receivable, including fees	$ 6,431	$ 5,468	$ 12,804	$ 10,396
Securities	1,007	1,135	2,033	2,225
Other	7	16	11	24
Total interest income	7,445	6,619	14,848	12,645
INTEREST EXPENSE
Deposits	942	932	1,903	1,817
Short-term borrowings	13	27	24	51
Other borrowings	243	342	487	678
Total interest expense	1,198	1,301	2,414	2,546
NET INTEREST INCOME	6,247	5,318	12,434	10,099
PROVISION FOR LOAN LOSSES	400	430	750	650
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	5,847	4,888	11,684	9,449
OTHER INCOME
Service charges and fees	559	592	1,113	1,141
Income from fiduciary activities	80	105	178	218
Net realized gains on sales of securities	285	12	687	224
Gains on sale of loans and servicing rights	66	98	60	241
Other	216	186	459	377
Total other income	1,206	993	2,497	2,201
OTHER EXPENSES
Salaries and employee benefits	2,047	1,832	4,198	3,533
Occupancy, furniture & equipment, net	490	408	977	806
Data processing related	216	187	448	402
Taxes, other than income	149	143	301	272
Professional fees	217	126	426	281
Merger related expenses		488	18	755
Federal Deposit Insurance Corporation insurance assessment	97	95	196	215
Foreclosed real estate owned	85	17	207	36
Other	656	640	1,333	1,170
Total other expenses	3,957	3,936	8,104	7,470
INCOME BEFORE INCOME TAXES	3,096	1,945	6,077	4,180
INCOME TAX EXPENSE	838	461	1,633	1,036
NET INCOME	$ 2,258	$ 1,484	$ 4,444	$ 3,144
BASIC EARNINGS PER SHARE	$ 0.69	$ 0.50	$ 1.35	$ 1.10
DILUTED EARNINGS PER SHARE	$ 0.69	$ 0.50	$ 1.35	$ 1.10

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Off-Balance Sheet Financial Instruments and Guarantees

6 Months Ended

Jun. 30, 2012

Off-Balance Sheet Financial Instruments and Guarantees [Abstract]

Off-Balance Sheet Financial Instruments and Guarantees

4.         Off-Balance Sheet Financial Instruments and Guarantees

            The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit and letters of credit.  Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. 

            The Bank's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments.  The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

A summary of the Bank's financial instrument commitments is as follows:

(in thousands)	June 30,
	2012	2011
Unfunded availability under loan commitments	$50,754	$43,395
Unfunded commitments under lines of credit	37,462	28,910
Standby letters of credit	11,248	5,586
	$99,464	$77,891

            Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  Since some of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.  The Bank evaluates each customer's credit worthiness on a case-by-case basis.  The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management's credit evaluation of the customer and generally consists of real estate.

            The Bank does not issue any guarantees that would require liability recognition or disclosure, other than its standby letters of credit.  Standby letters of credit written are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party.  Generally, all letters of credit, when issued, have expiration dates within one year.  The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers.  The Bank, generally, holds collateral and/or personal guarantees supporting these commitments.  Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payments required under the corresponding guarantees.  The current amount of the liability as of June 30, 2012 for guarantees under standby letters of credit issued is not material.  

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

3. Stock-Based Compensation

As of June 30, 2012, there was $65,000 of total unrecognized compensation cost related to non-vested options granted in 2011 under the plan, which will be fully amortized by December 31, 2012.

A summary of stock options from all plans, adjusted for stock dividends declared, is shown below.

	Options	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value ($000)
Outstanding at January 1, 2012	209,914	$	28.43	6.3	Yrs.	$	113
Granted	-		-		-		-
Exercised	(4,775)		20.72	.8	Yrs.		31
Forfeited	(12,225)		29.65	5.2	Yrs.		-
Outstanding at June 30, 2012	192,914		28.54	5.9	Yrs.		170
Exercisable at June 30, 2012	164,914		28.72	5.3	Yrs.		142

            Intrinsic value represents the amount by which the market price of the stock on the measurement date exceeded the exercise price of the option.  The stock price was $28.50 as of June 30, 2012 and $27.47 as of December 31, 2011. 

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	Fair Value Measurement Using
Description	Total		(Level 1)	(Level 2)	(Level 3)
(In thousands)
June 30, 2012
Available for Sale:
U.S. Government agencies		$2,005	$-	$2,005	$-
States and political subdivisions		56,769	-	56,769	-
Corporate obligations		8,845	-	8,845	-
Mortgage-backed securities-government   sponsored agencies		76,889	-	76,889	-
Equity securities-financial services		212	212	-	­  ______-
Total		$144,720	$212	$144,508	$             -
December 31, 2011
Available for Sale:
U.S. Government agencies		$  13,398	$     -	$   13,398	$             -
States and political subdivisions		56,746	-	56,746	-
Corporate obligations		8,809	-	8,809	-
Mortgage-backed securities-government   sponsored agencies		70,965	-	70,965	-
Equity securities-financial services		345	345	_____-_	­_______-
Total		$150,263	$345	$149,918	$             -

Fair Value, Assets Measured on Nonrecurring Basis [Table Text Block]

		Fair Value Measurement  using
(In thousands)
Description	Total	(Level 1)	(Level 2)	(Level 3)
June 30, 2012
Impaired Loans	$12,990	$-	$-	$12,990
Foreclosed Real Estate Owned	1,268	-	-	1,268
	$14,258	$-	$-	$14,258
December 31, 2011
Impaired Loans	$12,399	$ -	$ -	$12,399
Foreclosed Real Estate Owned	2,910	-	-	2,910
	$15,309	$ -	$ -	$15,309

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

	Quantitative Information about Level 3 Fair Value Measurements
(In thousands)	Fair Value Estimate	Valuation Techniques	Unobservable Input	Range(Weighted Average)
June 30, 2012
Impaired loans	$12,990	Appraisal of collateral(1)	Appraisal adjustments(2) Liquidation expenses(2)	0-20% 20%
Foreclosed real estate owned	$1,268	Appraisal of collateral(1)(3)

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which

      generally include various level 3 inputs which are not identifiable, less any associated allowance.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and

       estimated liquidation expenses.  The range and weighted average of liquidation expenses and other

       appraisal adjustments are presented as a percent of the appraisal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

Fair Value, by Balance Sheet Grouping [Table Text Block]

	Fair Value Measurements at June 30, 2012
	Carrying Amount	Fair Value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and due from banks, interest-bearing deposits with banks and federal funds sold	$24,396	$24,396	$24,396	$-	$-
Securities	144,892	144,897	212	144,685	-
Loans receivable, net	473,646	483,418	-	-	483,418
Mortgage servicing rights	288	286	286	-	-
Investment in FHLB stock	3,243	3,243	3,243	-	-
Bank owned life insurance	12,119	12,119	12,119	-	-
Accrued interest receivable	2,416	2,416	2,416	-	-
Financial liabilities:
Deposits	534,157	535,878	319,552	-	216,326
Short-term borrowings	27,192	27,192	27,192	-	-
Other borrowings	27,579	30,947	-	-	30,947
Accrued interest payable	1,335	1,335	1,335	-	-
Off-balance sheet financial instruments:  Commitments to extend credit and outstanding letters of credit	-	-	-	-	-

	Fair Value Measurements at December 31, 2011
	Carrying Amount	Fair Value
Financial assets:
Cash and due from banks, interest-   bearing deposits with banks and   federal funds sold	$21,423	$21,423
Securities	150,434	150,440
Loans receivable, net	452,449	463,118
Mortgage servicing rights	302	308
Investment in FHLB stock	3,593	3,593
Bank owned life insurance	11,887	11,887
Accrued interest receivable	2,468	2,468
Financial liabilities:
Deposits	525,767	527,707
Short-term borrowings	21,794	21,794
Other borrowings	27,670	30,002
Accrued interest payable	1,321	1,321
Off-balance sheet financial instruments:  Commitments to extend credit and         outstanding letters of credit	-	-

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

Stock-Based Compensation [Abstract]

Stock Options from All Plans, Adjusted for Stock Dividends Declared [Table Text Block]

	Options	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value ($000)
Outstanding at January 1, 2012	209,914	$	28.43	6.3	Yrs.	$	113
Granted	-		-		-		-
Exercised	(4,775)		20.72	.8	Yrs.		31
Forfeited	(12,225)		29.65	5.2	Yrs.		-
Outstanding at June 30, 2012	192,914		28.54	5.9	Yrs.		170
Exercisable at June 30, 2012	164,914		28.72	5.3	Yrs.		142

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Fair Value Measurements

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

7.         Fair Value Measurements

Fair value estimates are based on quoted market prices, if available, quoted market prices of similar assets or liabilities, or the present value of expected future cash flows and other valuation techniques.  These valuations are significantly affected by discount rates, cash flow assumptions and risk assumptions used.  Therefore, fair value estimates may not be substantiated by comparison to independent markets and are not intended to reflect the proceeds that may be realizable in an immediate settlement of the instruments.

            Fair value is determined at one point in time and is not representative of future value.  These amounts do not reflect the total value of a going concern organization.  Management does not have the intention to dispose of a significant portion of its assets and liabilities and therefore, the unrealized gains or losses should not be interpreted as a forecast of future earnings and cash flows.

            The following is a discussion of assets and liabilities measured at fair value on a recurring basis and valuation techniques applied:

Securities:

            The fair value of securities available for sale (carried at fair value) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted prices.  For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability and such adjustments are generally based on available market evidence (Level 2).  Internal cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) are used to support fair values of certain (Level 3) investments, if applicable.

            We may be required from time to time to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP.  These adjustments to fair value usually result from application of lower-of-cost-or market accounting or write-downs of individual assets.

Impaired loans (carried at fair value):

            The Company measured impairment generally based on the fair value of the loan's collateral.  Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds.  These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.

Foreclosed real estate owned (carried at fair value):

            Real estate properties acquired through, or in lieu of loan foreclosure are to be sold and are carried at fair value less estimated cost to sell.  Fair value is based upon independent market prices, appraised value of the collateral or management's estimation of the value of the collateral.  These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement.

For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2012 and December 31, 2011 are as follows:

	Fair Value Measurement Using
Description	Total		(Level 1)	(Level 2)	(Level 3)
(In thousands)
June 30, 2012
Available for Sale:
U.S. Government agencies		$2,005	$-	$2,005	$-
States and political subdivisions		56,769	-	56,769	-
Corporate obligations		8,845	-	8,845	-
Mortgage-backed securities-government   sponsored agencies		76,889	-	76,889	-
Equity securities-financial services		212	212	-	­  ______-
Total		$144,720	$212	$144,508	$             -
December 31, 2011
Available for Sale:
U.S. Government agencies		$  13,398	$     -	$   13,398	$             -
States and political subdivisions		56,746	-	56,746	-
Corporate obligations		8,809	-	8,809	-
Mortgage-backed securities-government   sponsored agencies		70,965	-	70,965	-
Equity securities-financial services		345	345	_____-_	­_______-
Total		$150,263	$345	$149,918	$             -

For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2012 and December 31, 2011 are as follows:

		Fair Value Measurement  using
(In thousands)
Description	Total	(Level 1)	(Level 2)	(Level 3)
June 30, 2012
Impaired Loans	$12,990	$-	$-	$12,990
Foreclosed Real Estate Owned	1,268	-	-	1,268
	$14,258	$-	$-	$14,258
December 31, 2011
Impaired Loans	$12,399	$ -	$ -	$12,399
Foreclosed Real Estate Owned	2,910	-	-	2,910
	$15,309	$ -	$ -	$15,309

There were no assets measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value at June 30, 2012.

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Norwood has utilized Level 3 inputs to determine fair value:

	Quantitative Information about Level 3 Fair Value Measurements
(In thousands)	Fair Value Estimate	Valuation Techniques	Unobservable Input	Range(Weighted Average)
June 30, 2012
Impaired loans	$12,990	Appraisal of collateral(1)	Appraisal adjustments(2) Liquidation expenses(2)	0-20% 20%
Foreclosed real estate owned	$1,268	Appraisal of collateral(1)(3)

1) Fair value is generally determined through independent appraisals of the underlying collateral, which

      generally include various level 3 inputs which are not identifiable, less any associated allowance.

(

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and

       estimated liquidation expenses.  The range and weighted average of liquidation expenses and other

       appraisal adjustments are presented as a percent of the appraisal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company's assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company's disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company's financial instruments at June 30, 2012 and December 31, 2011.

Cash and cash equivalents (carried at cost):

            The carrying amounts reported in the consolidated balance sheet for cash and short-term instruments approximate those assets' fair values.

Loans receivable (carried at cost):

            The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans.  Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal.  Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair value of impaired loans are generally based on the fair value of the loan's collateral.

Mortgage servicing rights (generally carried at cost)

The Company utilizes a third party provider to estimate the fair value of certain loan servicing rights.  Fair value for the purpose of this measurement is defined as the amount at which the asset could be exchanged in a current transaction between willing parties, other than in a forced liquidation.

Investment in Federal Home Loan Bank stock (carried at cost):

The Company as a member of the Federal Home Loan Bank (FHLB) system is required to maintain an investment in capital stock of its district FHLB according to a predetermined formula.  This restricted stock has no quoted market value and is carried at cost.

Bank owned life insurance (carried at cost):

            The fair value is equal to the cash surrender value of the Bank-owned life insurance.

Accrued interest receivable and payable (carried at cost):    

The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value.

Deposit liabilities (carried at cost):

The fair values disclosed for demand deposits (e.g. interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e. their carrying amounts).  Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Short-term borrowings (carried at cost):

The carrying amounts of short-term borrowings approximate their fair values.

Other borrowings (carried at cost):

Fair values of FHLB advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity.  These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party.

Off-balance sheet financial instruments (disclosed at cost):

            Fair values for the Company's off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties' credit standing.

The estimated fair values of the Bank's financial instruments were as follows at June 30, 2012 and December 31, 2011. (In thousands)

	Fair Value Measurements at June 30, 2012
	Carrying Amount	Fair Value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and due from banks, interest-bearing deposits with banks and federal funds sold	$24,396	$24,396	$24,396	$-	$-
Securities	144,892	144,897	212	144,685	-
Loans receivable, net	473,646	483,418	-	-	483,418
Mortgage servicing rights	288	286	286	-	-
Investment in FHLB stock	3,243	3,243	3,243	-	-
Bank owned life insurance	12,119	12,119	12,119	-	-
Accrued interest receivable	2,416	2,416	2,416	-	-
Financial liabilities:
Deposits	534,157	535,878	319,552	-	216,326
Short-term borrowings	27,192	27,192	27,192	-	-
Other borrowings	27,579	30,947	-	-	30,947
Accrued interest payable	1,335	1,335	1,335	-	-
Off-balance sheet financial instruments:  Commitments to extend credit and outstanding letters of credit	-	-	-	-	-

	Fair Value Measurements at December 31, 2011
	Carrying Amount	Fair Value
Financial assets:
Cash and due from banks, interest-   bearing deposits with banks and   federal funds sold	$21,423	$21,423
Securities	150,434	150,440
Loans receivable, net	452,449	463,118
Mortgage servicing rights	302	308
Investment in FHLB stock	3,593	3,593
Bank owned life insurance	11,887	11,887
Accrued interest receivable	2,468	2,468
Financial liabilities:
Deposits	525,767	527,707
Short-term borrowings	21,794	21,794
Other borrowings	27,670	30,002
Accrued interest payable	1,321	1,321
Off-balance sheet financial instruments:  Commitments to extend credit and         outstanding letters of credit	-	-

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Securities

6 Months Ended

Jun. 30, 2012

Securities [Abstract]

Securities

5. Securities

The amortized cost and fair value of securities were as follows:

	June 30, 2012
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
	(In Thousands)
Available for Sale:
U.S. Government agencies	$2,000	$7	$(2)	$2,005
States and political subdivisions	54,163	2,648	(42)	56,769
Corporate obligations	8,635	215	(5)	8,845
Mortgage-backed securities-  government sponsored entities	74,944	1,970	(25)	76,889
	139,742	4,840	(74)	144,508
Equity securities-financial services	189	23	-	212
	$139,931	$4,863	$(74)	$144,720
Held to Maturity:
States and political subdivisions	$172	$5	$-	$177

	December 31, 2011
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
	(In Thousands)
Available for Sale:
U.S. Government agencies	$13,268	$130	$-	$13,398
States and political subdivisions	54,106	2,640	-	56,746
Corporate obligations	8,733	130	(54)	8,809
Mortgage-backed securities-government     sponsored entities	68,886	2,081	(2)	70,965
	144,993	4,981	(56)	149,918
Equity securities-financial services	239	109	(3)	345
	$145,232	$5,090	$(59)	$150,263
Held to Maturity:
States and political subdivisions	$171	$6	$-	$177

The following tables show the Company's investments' gross unrealized losses and fair value aggregated by length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	June 30, 2012
	Less than 12 Months           12 Months or More           __Total__ ___
	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
U.S. Government Agencies	$998	$(2)	$-	$-	$998	$(2)
States and political subdivisions	3,254	(42)	-	-	3,254	(42)
Corporate obligations	1,457	(5)	-	-	1,457	(5)
Mortgage-backed securities-government sponsored agencies	6,563	(25)	-	-	6,563	(25)
	$12,272	$(74)	$-	$-	$12,272	$(74)

	December 31, 2011
	Less than 12 Months         12 Months or More                     Total
	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
Corporate obligations	$4,152	$ (54)	$-	$-	$4,152	$ (54)
Mortgage-backed securities-government sponsored agencies	2,495	(2)	-	-	2,495	(2)
Equity securities-financial services	34	(2)	15	(1)	49	(3)
	$6,681	$ (58)	$15	$(1)	$6,696	$(59)

            At June 30, 2012, the Company has 14 debt securities in an unrealized loss position in the less than twelve months category and no debt securities in the twelve months or more category.  In Management's opinion the unrealized losses less than twelve months principally reflect changes in interest rates subsequent to the acquisition of specific securities.  The Company holds a small amount of equity securities in other financial institutions.  As of June 30, 2012, there were no unrealized losses on equity securities.  Management believes that the other unrealized loss represents temporary impairment of the security as the Company does not have the intent to sell the security and it is more likely than not that it will not have to sell the security before recovery of its cost basis.

            The amortized cost and fair value of debt securities as of June 30, 2012 by contractual maturity are shown below.  Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties.

	Available for Sale          Held to Maturity
	Amortized Cost	Fair Value	Amortized Cost	Fair Value
	(In Thousands)
Due in one year or less	$10,209	$10,313	$-	$-
Due after one year through five years
Due after five years through ten years	7,466	7,690	172	177
Due after ten years	17,363	18,255	-	-
	29,760	31,361	-	-
Mortgage-backed securities-government      sponsored agencies	74,944	76,889	-	-
	$139,742	$144,508	$172	$177

            Gross realized gains and gross realized losses on sales of securities available for sale were as follows (in thousands):

	Three Months            Six Months
	Ended  June 30,         Ended June 30,
	2012	2011	2012	2011
Gross realized gains	$285	$15	$687	$228
Gross realized losses	___-	__(3)	___-	_(4)
Net realized gain	$285	$12	$687	$224
Proceeds from sales of securities	$7,716	$4,157	$18,349	$10,344

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Loans Receivable and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2012

Loans Receivable and Allowance for Loan Losses [Abstract]

Loans Receivable and Allowance for Loan Losses

6. Loans Receivable and Allowance for Loan Losses

Set forth below is selected data relating to the composition of the loan portfolio at the dates indicated:

	Types of loans
	(dollars in thousands)         June 30, 2012                   December 31, 2011
Real Estate-Residential	$148,051	30.8%	$148,148	32.3%
Commercial	275,258	57.4	262,476	57.3
Construction	15,881	3.3	11,087	2.4
Commercial, financial and agricultural	26,518	5.5	22,684	5.0
Consumer loans to individuals	14,244	3.0	13,934	3.0
Total loans	479,952	100.0%	458,329	100.0%
Deferred fees (net)	(531)		(422)
Allowance for loan losses	(5,775)		(5,458)
Net loans receivable	$473,646		$452,449

Changes in the accretable yield for purchased credit-impaired loans were as follows for the six months ended June 30, 2012 (in thousands):

Balance at beginning of period	$171
Accretion	(47)
Reclassification and other	-
Balance at end of period	$124

            The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30 (in thousands):

	June 30, 2012	December 31, 2011
	Acquired Loans with Specific Evidence of Deterioration in Credit Quality	Acquired Loans with Specific Evidence of Deterioration in Credit Quality
Outstanding Balance	$ 1,346	$ 1,412
Carrying Amount	1,224	1,246

            There were no material increases or decreases in the expected cash flows of these loans between May 31, 2011 (the "acquisition date") and June 30, 2012.  There has been no allowance for loan losses recorded for acquired loans with or without specific evidence of deterioration in credit quality as of May 31, 2011 as well as those acquired without specific evidence of deterioration in credit quality as of June 30, 2012.  In addition, there has been no allowance for loan losses reversed.

The Company maintains a loan review system, which allows for a periodic review of our loan portfolio and the early identification of potential impaired loans. Such system takes into consideration, among other things, delinquency status, size of loans, type and market value of collateral and financial condition of the borrowers. Specific loan loss allowances are established for identified losses based on a review of such information. A loan evaluated for impairment is considered to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans identified as impaired are evaluated independently. We do not aggregate such loans for evaluation purposes. Impairment is measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral-dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential mortgage loans for impairment disclosures, unless such loans are part of a larger relationship that is impaired, or are classified as a troubled debt restructuring.

The following table shows the amount of loans in each category that were individually and collectively evaluated for impairment at the dates indicated:

		Real Estate Loans
		Residential			Commercial			Construction		Commercial Loans			Consumer Loans		Total
June 30, 2012								(In thousands)
Individually     evaluated for     impairment	$	-		$	12,501		$	-	$	385	$		-	$	12,886
Loans acquired     with     deteriorated     credit quality		273			951			-		-			-		1,224
Collectively     evaluated for     impairment		147,778			261,806			15,881		26,133			14,244		465,842
Total Loans	$	148,051	$			275,258	$	15,881	$	26,518	$	14,244		$	479,952
			Real Estate Loans
		Residential			Commercial			Construction		Commercial Loans			Consumer Loans		Total
December 31,       2011								(In thousands)
Individually     evaluated for     impairment	$	-		$	11,786		$	-	$	598	$		-	$	12,384
Loans acquired with deteriorated credit quality		343			903			-		-			-		1,246
Collectively     evaluated for     impairment		147,805			249,787			11,087		22,086			13,934		444,699
Total Loans	$	148,148		$	262,476		$	11,087	$	22,684	$		13,934	$	458,329

The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired.

		Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Recorded Investment		Interest Income Recognized
June 30, 2012 With no related allowance recorded:					(In thousands)
Real Estate Loans
Residential	$	273	$	297	$	-	$	289	$	2
Commercial		5,420		5,520		-		5,902		40
Commercial Loans		385		385		-		385		-
Total		6,078		6,202		-		6,576		42
With an allowance recorded:
Real Estate Loans
Commercial		8,031		8,031		1,120		7,379		106
Total		8,031		8,031		1,120		7,379		106
Total:
Real Estate loans
Residential		273		297		-		289		2
Commercial		13,451		13,551		1,120		13,281		146
Commercial Loans		385		385		-		385		-
Total Impaired Loans	$	14,109	$	14,233	$	1,120	$	13,955	$	148

		Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Recorded Investment		Interest Income Recognized
December 31, 2011 With no related allowance recorded:				(In thousands)
Real Estate Loans
Residential	$	343	$	385	$	-	$	245	$	7
Commercial		5,866		5,995		-		5,372		340
Commercial Loans		598		598		-		496		10
Total		6,807		6,978		-		6,113		357
With an allowance recorded:
Real Estate Loans
Commercial		6,823		6,823		1,231		9,670		204
Total		6,823		6,823		1,231		9,670		204
Total:
Real Estate loans
Residential		343		385		-		245		7
Commercial		12,689		12,818		1,231		15,042		544
Commercial Loans		598		598		-		496		10
Total Impaired Loans	$	13,630	$	13,801	$	1,231	$	15,783	$	561

            Troubled debt restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources.  As of June 30, 2012, troubled debt restructured loans totaled $7.1 million and resulted in specific reserves of $991,000. There were no defaults on restructured loans during the past twelve months.  During 2012 and 2011, there were no new loans identified as troubled debt restructurings.  As of December 31, 2011, troubled debt restructured loans totaled $7.2 million and resulted in specific reserves of $1.2 million. 

Management uses a seven point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first three categories are considered not criticized, and are aggregated as "Pass" rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as non performance, repossession, or death occurs to raise awareness of a possible credit event. The Bank's Loan Review Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. Loan Review also annually reviews relationships of $500,000 and over to assign or re-affirm risk ratings. Loans in the Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance.

The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful and Loss within the internal risk rating system as of June 30, 2012 and December 31, 2011 (in thousands):

		Pass		Special Mention		Substandard		Doubtful		Total
June 30, 2012
Commercial real estate loans	$	250,726	$	9,825	$	14,707	$	-	$	275,258
Commercial loans		25,842		238		438		-		26,518
Total	$	276,568	$	10,063	$	15,145	$	-	$	301,776

		Pass		Special Mention		Substandard		Doubtful		Total
December 31,  2011
Commercial real estate loans	$	237,407	$	11,009	$	14,060	$	-	$	262,476
Commercial loans		21,598		427		659		-		22,684
Total	$	259,005	$	11,436	$	14,719	$	-	$	285,160

For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. Nonperforming loans include loans on nonaccrual status and accruing loans which are past due over ninety days. The following table presents the recorded investment in the loan classes based on payment activity as of June 30, 2012 and December 31, 2011 (in thousands):

June 30, 2012		Performing		Nonperforming		Total
Residential real estate loans	$	145,530	$	2,521	$	148,051
Construction		15,881		-		15,881
Consumer loans		14,244		-		14,244
Total	$	175,655	$	2,521	$	178,176

December 31, 2011		Performing		Nonperforming		Total
Residential real estate loans	$	145,061	$	3,087	$	148,148
Construction		11,087		-		11,087
Consumer loans		13,934		-		13,934
Total	$	170,082	$	3,087	$	173,169

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of June 30, 2012 and December 31, 2011 (in thousands):

		Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non-Accrual		Total Loans
June 30, 2012
Real Estate loans
Residential	$	145,026	$	435	$	69	$	-	$	2,521	$	3,025	$	148,051
Commercial		268,298		986		-		2		5,972		6,960		275,258
Construction		15,816		65		-		-		-		65		15,881
Commercial  loans		26,131		2		-		-		385		387		26,518
Consumer  loans		14,144		87		12		1		-		100		14,244
Total	$	469,415	$	1,575	$	81	$	3	$	8,878	$	10,537	$	479,952
		Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non-Accrual		Total Loans
December 31, 2011
Real Estate loans
Residential	$	143,550	$	160	$	1,351	$	-	$	3,087	$	4,598	$	148,148
Commercial		255,613		1,015		1,524		-		4,324		6,863		262,476
Construction		10,532		-		555		-		-		555		11,087
Commercial  loans		22,086		194		-		-		404		598		22,684
Consumer  loans		13,835		89		10		-		-		99		13,934
Total	$	445,616	$	1,458	$	3,440	$	-	$	7,815	$	12,713	$	458,329

The following table presents the allowance for loan losses by the classes of the loan portfolio:

(In thousands)		Residential Real Estate		Commercial Real Estate		Construction		Commercial		Consumer		Total
Beginning balance, December 31, 2011	$	1,257	$	3,838	$	72	$	147	$	144	$	5,458
Charge Offs		(308)		(96)		(7)		-		(33)		(444)	)
Recoveries		1		-		-		-		10		11
Provision Expense		609		(51)		22		116		54		750
Ending balance,      June 30, 2012	$	1,559	$	3,691	$	87	$	263	$	175	$	5,775
Ending balance individually   evaluated for impairment	$	-	$	1,120		-		-		-	$	1,120
Ending balance collectively   evaluated for impairment	$	1,559	$	2,571	$	87	$	263	$	175	$	4,655

(In thousands)		Residential Real Estate		Commercial Real Estate		Construction		Commercial		Consumer		Total
Beginning balance, December 31, 2010	$	1,167	$	3,976	$	110	$	171	$	192	$	5,616
Charge Offs		(226)		(764)		-		(2)		(41)		(1,033)	)
Recoveries		7		-		-		5		22		34
Provision Expense		148		463		(19)		84		(26)		650
Ending balance,      June 30, 2011	$	1,096	$	3,675	$	91	$	258	$	147	$	5,267
Ending balance individually   evaluated for impairment	$	-	$	1,678		-		-		-	$	1,678
Ending balance collectively   evaluated for impairment	$	1,096	$	1,997	$	91	$	258	$	147	$	3,589

            The Company's primary business activity is with customers located in northeastern Pennsylvania. Accordingly, the Company has extended credit primarily to commercial entities and individuals in this area whose ability to honor their contracts is influenced by the region's economy.

As of June 30, 2012, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in the hospitality lodging industry and builders/contractors with loans outstanding of $44.1 million, or 49.6% of capital, to the hospitality lodging industry and $14.1 million, or 19.7% of capital, to builders/contractors. There were no losses recognized on loans to the hospitality industry or to builders/contractors during the current period.

Gross realized gains and gross realized losses on sales of residential mortgage loans were $74,000 and $0 respectively, in the first six months of 2012 compared to $94,000 and $0, respectively, in the same period in 2011. The proceeds from the sales of residential mortgage loans totaled $2.3 million and $6.7 million for the six months ended June 30, 2012 and 2011, respectively.

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New and Recently Adopted Accounting Pronouncements

6 Months Ended

Jun. 30, 2012

New and Recently Adopted Accounting Pronouncements [Abstract]

New and Recently Adopted Accounting Pronouncements

8.         New and Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements:

In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820):  Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.  The amendments in this Update result in common fair value measurement and disclosure requirements in U.S. GAAP and IFRSs.  Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements.  The amendments in this Update are to be applied prospectively.  For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. Early application by public entities is not permitted.The Company has provided the necessary disclosure in Note 7.

            In June 2011, the FASB issued ASU 2011-05, Comprehensive Income (Topic 220):  Presentation of Comprehensive Income.  The amendments in this Update improve the comparability, clarity, consistency, and transparency of financial reporting and increase the prominence of items reported in other comprehensive income.  To increase the prominence of items reported in other comprehensive income and to facilitate convergence of U.S. GAAP and IFRS, the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity was eliminated.  The amendments require that all non-owner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  In the two-statement approach, the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income, the components of other comprehensive income, and the total of comprehensive income.  All entities that report items of comprehensive income, in any period presented, will be affected by the changes in this Update.  For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The amendments in this Update should be applied retrospectively, and early adoption is permitted.The Company has provided the necessary disclosure in the Consolidated Statement of Comprehensive Income.

            In September 2011, the FASB issued ASU 2011-08, Intangibles – Goodwill and Other Topics (Topic 350), Testing Goodwill for Impairment.  The objective of this update is to simplify how entities, both public and nonpublic, test goodwill for impairment.  The amendments in the Update permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350.  The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent.  Under the amendments in this Update, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount.  The amendments in this Update apply to all entities, both public and nonpublic, that have goodwill reported in their financial statements and are effective for interim and annual goodwill impairment tests performed for fiscal years beginning after December 15, 2011.  Early adoption is permitted, including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011, if an entity's financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance.  The Company has provided the necessary disclosure in Item 2 of this Form 10-Q.

In September 2011, the FASB issued ASU 2011-09, Compensation-Retirement Benefits-Multiemployer Plans (Subtopic 715-80): Disclosures about an Employer's Participation in a Multiemployer Plan. The amendments in this Update will require additional disclosures about an employer's participation in a multiemployer pension plan to enable users of financial statements to assess the potential cash flow implications relating to an employer's participation in multiemployer pension plans. The disclosures also will indicate the financial health of all of the significant plans in which the employer participates and assist a financial statement user to access additional information that is available outside the financial statements. For public entities, the amendments in this Update are effective for annual periods for fiscal years ending after December 15, 2011, with early adoption permitted. The amendments should be applied retrospectively for all prior periods presented.The Company has adopted this standard.

In December 2011, the FASB issued ASU 2011-10, Property, Plant, and Equipment (Topic 360): Derecognition of in Substance Real Estate-a Scope Clarification. The amendments in this Update affect entities that cease to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary's nonrecourse debt. Under the amendments in this Update, when a parent (reporting entity) ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary's nonrecourse debt, the reporting entity should apply the guidance in Subtopic 360-20 to determine whether it should derecognize the in substance real estate. Generally, a reporting entity would not satisfy the requirements to derecognize the in substance real estate before the legal transfer of the real estate to the lender and the extinguishment of the related nonrecourse indebtedness. That is, even if the reporting entity ceases to have a controlling financial interest under Subtopic 810-10 , the reporting entity would continue to include the real estate, debt, and the results of the subsidiary's operations in its consolidated financial statements until legal title to the real estate is transferred to legally satisfy the debt. The amendments in this Update should be applied on a prospective basis to deconsolidation events occurring after the effective date. Prior periods should not be adjusted even if the reporting entity has continuing involvement with previously derecognized in substance real estate entities. For public entities, the amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2012. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company's financial statements.

In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The amendments in this Update affect all entities that have financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement. The requirements amend the disclosure requirements on offsetting in Section 210-20-50 . This information will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. This ASU is not expected to have a significant impact on the Company's financial statements.

In December 2011, the FASB issued ASU 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. In order to defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments, the paragraphs in this Update supersede certain pending paragraphs in Update 2011-05. Entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before Update 2011-05. All other requirements in Update 2011-05 are not affected by this Update, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company has provided the necessary disclosure in the Consolidated Statement of Comprehensive Income.

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Loans Receivable and Allowance for Loan Losses (Allowance for Loan Losses and Recorded Investment in Financing Receivables) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	$ 12,886,000		$ 12,886,000		$ 12,384,000
Loans acquired with deteriorated credit quality	1,224,000		1,224,000		1,246,000
Collectively evaluated for impairment	465,842,000		465,842,000		444,699,000
Total Loans	479,952,000		479,952,000		458,329,000
Beginning balance,			5,458,000
Provision for loan losses	400,000	430,000	750,000	650,000
Ending balance,	5,775,000		5,775,000
Concentration Risk, Credit Risk, Loan Products			As of June 30, 2012, the Company considered its concentration of credit risk to be acceptable. The highest concentrations are in the hospitality lodging industry and builders/contractors with loans outstanding of $44.1 million, or 49.6% of capital, to the hospitality lodging industry and $14.1 million, or 19.7% of capital, to builders/contractors.
Loan Losses in Hospitality Industry			0
Gross Realized Gains on Loans			74,000	94,000
Gross Realized Losses on Loans			0	0
Proceeds from Sale of Residential Mortgage Loans			2,300,000	6,700,000
Residential Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans acquired with deteriorated credit quality	273,000		273,000		343,000
Collectively evaluated for impairment	147,778,000		147,778,000		147,805,000
Total Loans	148,051,000		148,051,000		148,148,000
Beginning balance,			1,257,000	1,167,000
Charge Offs			(308,000)	(226,000)
Recoveries			1,000	7,000
Provision for loan losses			609,000	148,000
Ending balance,	1,559,000	1,096,000	1,559,000	1,096,000
Ending balance collectively evaluated for impairment	1,559,000	1,096,000	1,559,000	1,096,000
Commercial Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	12,501,000		12,501,000		11,786,000
Loans acquired with deteriorated credit quality	951,000		951,000		903,000
Collectively evaluated for impairment	261,806,000		261,806,000		249,787,000
Total Loans	275,258,000		275,258,000		262,476,000
Beginning balance,			3,838,000	3,976,000
Charge Offs			(96,000)	(764,000)
Provision for loan losses			(51,000)	463,000
Ending balance,	3,691,000	3,675,000	3,691,000	3,675,000
Ending balance individually evaluated for impairment	1,120,000	1,678,000	1,120,000	1,678,000
Ending balance collectively evaluated for impairment	2,571,000	1,997,000	2,571,000	1,997,000
Construction Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment	15,881,000		15,881,000		11,087,000
Total Loans	15,881,000		15,881,000		11,087,000
Beginning balance,			72,000	110,000
Charge Offs			(7,000)
Provision for loan losses			22,000	(19,000)
Ending balance,	87,000	91,000	87,000	91,000
Ending balance collectively evaluated for impairment	87,000	91,000	87,000	91,000
Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment	385,000		385,000		598,000
Collectively evaluated for impairment	26,133,000		26,133,000		22,086,000
Total Loans	26,518,000		26,518,000		22,684,000
Beginning balance,			147,000	171,000
Charge Offs				(2,000)
Recoveries				5,000
Provision for loan losses			116,000	84,000
Ending balance,	263,000	258,000	263,000	258,000
Ending balance collectively evaluated for impairment	263,000	258,000	263,000	258,000
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment	14,244,000		14,244,000		13,934,000
Total Loans	14,244,000		14,244,000		13,934,000
Beginning balance,			144,000	192,000
Charge Offs			(33,000)	(41,000)
Recoveries			10,000	22,000
Provision for loan losses			54,000	(26,000)
Ending balance,	175,000	147,000	175,000	147,000
Ending balance collectively evaluated for impairment	$ 175,000	$ 147,000	$ 175,000	$ 147,000

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Securities (Tables)

6 Months Ended

Jun. 30, 2012

Securities [Abstract]

Amortized Cost and Fair Values of Securities [Table Text Block]

	June 30, 2012
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
	(In Thousands)
Available for Sale:
U.S. Government agencies	$2,000	$7	$(2)	$2,005
States and political subdivisions	54,163	2,648	(42)	56,769
Corporate obligations	8,635	215	(5)	8,845
Mortgage-backed securities-  government sponsored entities	74,944	1,970	(25)	76,889
	139,742	4,840	(74)	144,508
Equity securities-financial services	189	23	-	212
	$139,931	$4,863	$(74)	$144,720
Held to Maturity:
States and political subdivisions	$172	$5	$-	$177

	December 31, 2011
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
	(In Thousands)
Available for Sale:
U.S. Government agencies	$13,268	$130	$-	$13,398
States and political subdivisions	54,106	2,640	-	56,746
Corporate obligations	8,733	130	(54)	8,809
Mortgage-backed securities-government     sponsored entities	68,886	2,081	(2)	70,965
	144,993	4,981	(56)	149,918
Equity securities-financial services	239	109	(3)	345
	$145,232	$5,090	$(59)	$150,263
Held to Maturity:
States and political subdivisions	$171	$6	$-	$177

Investments' Gross Unrealized Losses and Fair Value [Table Text Block]

	June 30, 2012
	Less than 12 Months           12 Months or More           __Total__ ___
	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
U.S. Government Agencies	$998	$(2)	$-	$-	$998	$(2)
States and political subdivisions	3,254	(42)	-	-	3,254	(42)
Corporate obligations	1,457	(5)	-	-	1,457	(5)
Mortgage-backed securities-government sponsored agencies	6,563	(25)	-	-	6,563	(25)
	$12,272	$(74)	$-	$-	$12,272	$(74)

	December 31, 2011
	Less than 12 Months         12 Months or More                     Total
	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
Corporate obligations	$4,152	$ (54)	$-	$-	$4,152	$ (54)
Mortgage-backed securities-government sponsored agencies	2,495	(2)	-	-	2,495	(2)
Equity securities-financial services	34	(2)	15	(1)	49	(3)
	$6,681	$ (58)	$15	$(1)	$6,696	$(59)

Securities by Contractual Maturity [Table Text Block]

	Available for Sale          Held to Maturity
	Amortized Cost	Fair Value	Amortized Cost	Fair Value
	(In Thousands)
Due in one year or less	$10,209	$10,313	$-	$-
Due after one year through five years
Due after five years through ten years	7,466	7,690	172	177
Due after ten years	17,363	18,255	-	-
	29,760	31,361	-	-
Mortgage-backed securities-government      sponsored agencies	74,944	76,889	-	-
	$139,742	$144,508	$172	$177

Gross Realized Gains and Losses on Sales of Securities Available-for-Sale [Table Text Block]

	Three Months            Six Months
	Ended  June 30,         Ended June 30,
	2012	2011	2012	2011
Gross realized gains	$285	$15	$687	$228
Gross realized losses	___-	__(3)	___-	_(4)
Net realized gain	$285	$12	$687	$224
Proceeds from sales of securities	$7,716	$4,157	$18,349	$10,344

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Off-Balance Sheet Financial Instruments and Guarantees (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Jun. 30, 2011
Loss Contingencies [Line Items]
Financial Instrument Commitments	$ 99,464	$ 77,891
Unfunded availability under loan commitments [Member]
Loss Contingencies [Line Items]
Financial Instrument Commitments	50,754	43,395
Unfunded commitments under lines of credit [Member]
Loss Contingencies [Line Items]
Financial Instrument Commitments	37,462	28,910
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Financial Instrument Commitments	$ 11,248	$ 5,586

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Fair Value Measurements (Fair Value, by Balance Sheet Grouping) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets: Cash and due from banks, interest-bearing deposits with banks and federal funds sold	$ 15,261	$ 12,449
Financial assets: Accrued interest receivable	2,416	2,468
Financial liabilities: Accrued interest payable	1,335	1,321
Carrying Amount [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets: Cash and due from banks, interest-bearing deposits with banks and federal funds sold		21,423
Financial assets: Securities		150,434
Financial assets: Loans receivable, net		452,449
Financial assets: Mortgage servicing rights		302
Financial assets: Investment in FHLB stock		3,593
Financial assets: Bank owned life insurance		11,887
Financial assets: Accrued interest receivable		2,468
Financial liabilities: Deposits		525,767
Financial liabilities: Short-term borrowings		21,794
Financial liabilities: Other borrowings		27,670
Financial liabilities: Accrued interest payable		1,321
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets: Cash and due from banks, interest-bearing deposits with banks and federal funds sold		21,423
Financial assets: Securities		150,440
Financial assets: Loans receivable, net		463,118
Financial assets: Mortgage servicing rights		308
Financial assets: Investment in FHLB stock		3,593
Financial assets: Bank owned life insurance		11,887
Financial assets: Accrued interest receivable		2,468
Financial liabilities: Deposits		527,707
Financial liabilities: Short-term borrowings		21,794
Financial liabilities: Other borrowings		30,002
Financial liabilities: Accrued interest payable		1,321
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit

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Consolidated Statement of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Consolidated Statement of Comprehensive Income
Net income	$ 2,258	$ 1,484	$ 4,444	$ 3,144
Other Comprehensive income:
Investment securities available for sale: Unrealized holding gains	291	1,161	450	1,627
Investment securities available for sale: Tax effect	(100)	(395)	(153)	(553)
Reclassification of gains recognized in net income	(285)	(12)	(687)	(224)
Reclassification of gains recognized in net income: Tax effect	97	4	234	76
Net of tax amount	3	758	(156)	926
Comprehensive Income	$ 2,261	$ 2,242	$ 4,288	$ 4,070

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Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

2.             Earnings Per Share

Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.

The following table sets forth the weighted average shares outstanding used in the computations of basic and diluted earnings per share:                                                     

(in thousands)

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2012	2011	2012	2011
Basic EPS weighted average shares outstanding	3,276	2,937	3,280	2,852
Dilutive effect of stock options	4	2	3	3
Diluted EPS weighted average shares outstanding	3,280	2,939	3,283	2,855

Stock options which had no intrinsic value, because their effect would be anti-dilutive and therefore would not be included in the diluted EPS calculation were 98,275 and 165,150 as of June 30, 2012 and 2011, respectively, based upon the closing price of Norwood common stock of $28.50 and $26.15 per share on June 30, 2012 and 2011, respectively.

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Securities (Amortized Cost and Fair Values of Securities) (Details) New (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of Investments [Line Items]
Available for Sale, Fair Value	$ 144,720	$ 150,263
Held to Maturity, Fair Value	177	177
US Government Agencies [Member]
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost	2,000	13,268
Available for Sale, Gross Unrealized Gains	7	130
Available for Sale, Gross Unrealized Losses	(2)
Available for Sale, Fair Value	2,005	13,398
States and political subdivisions [Member]
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost	54,163	54,106
Available for Sale, Gross Unrealized Gains	2,648	2,640
Available for Sale, Gross Unrealized Losses	(42)
Available for Sale, Fair Value	56,769	56,746
Held to Maturity, Amortized Cost	172	171
Held to Maturity, Gross Unrealized Gains	5	6
Held to Maturity, Gross Unrealized Losses
Held to Maturity, Fair Value	177	177
Corporate obligations [Member]
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost	8,635	8,733
Available for Sale, Gross Unrealized Gains	215	130
Available for Sale, Gross Unrealized Losses	(5)	(54)
Available for Sale, Fair Value	8,845	8,809
Mortgage-backed securities-government sponsored entities [Member]
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost	74,944	68,886
Available for Sale, Gross Unrealized Gains	1,970	2,081
Available for Sale, Gross Unrealized Losses	(25)	(2)
Available for Sale, Fair Value	76,889	70,965
Total Debt Securities [Member]
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost	139,742	144,993
Available for Sale, Gross Unrealized Gains	4,840	4,981
Available for Sale, Gross Unrealized Losses	(74)	(56)
Available for Sale, Fair Value	144,508	149,918
Equity securities-financial services [Member]
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost	189	239
Available for Sale, Gross Unrealized Gains	23	109
Available for Sale, Gross Unrealized Losses		(3)
Available for Sale, Fair Value	212	345
Total Securities [Member]
Schedule of Investments [Line Items]
Available for Sale, Amortized Cost	139,931	145,232
Available for Sale, Gross Unrealized Gains	4,863	5,090
Available for Sale, Gross Unrealized Losses	(74)	(59)
Available for Sale, Fair Value	$ 144,720	$ 150,263

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Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	$ 212	$ 345
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	144,508	149,918
US Government Agencies [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	2,005	13,398
States and political subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	56,769	56,746
Corporate obligations [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	8,845	8,809
Mortgage-backed securities-government sponsored entities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	76,889	70,965
Equity securities-financial services [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	$ 212	$ 345

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Off-Balance Sheet Financial Instruments and Guarantees (Tables)

6 Months Ended

Jun. 30, 2012

Off-Balance Sheet Financial Instruments and Guarantees [Abstract]

Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block]

(in thousands)	June 30,
	2012	2011
Unfunded availability under loan commitments	$50,754	$43,395
Unfunded commitments under lines of credit	37,462	28,910
Standby letters of credit	11,248	5,586
	$99,464	$77,891