Exhibit 99.1

FOR IMMEDIATE RELEASE

NORWOOD FINANCIAL CORP. ANNOUNCES FIRST QUARTER EARNINGS

Honesdale, Pennsylvania—April 23, 2020

Lewis J. Critelli, President and Chief Executive Officer of Norwood Financial Corp. (Nasdaq Global Market – NWFL) and its subsidiary, Wayne Bank, announced earnings of $3,079,000 for the three months ended March 31, 2020, decreasing from the $3,190,000 recorded during the same three-month period of last year. The decrease was due to an increased provision for loan losses related to the current period of economic uncertainty. Earnings per share on a fully diluted basis were $0.49 in the first quarter of this year compared to $0.51 in the first quarter of 2019. The annualized return on average assets was 1.01% in the first quarter of 2020 and the annualized return on average equity was 8.79%, compared to 1.09% and 10.37%, respectively, in the first quarter of 2019.

Total assets were $1.242 billion as of March 31, 2020, an increase of $38.7 million compared to March 31, 2019. Total loans increased $64.4 million compared to March 31, 2019, total deposits increased $15.7 million compared to March 31, 2019, and stockholders’ equity increased $15.4 million compared to March 31, 2019.

Non-performing assets totaled $3.8 million or 0.31% of total assets at March 31, 2020 comprised of $2.7 million of non-performing loans and $1.1 million of foreclosed real estate owned, compared to non-performing assets of $2.9 million, or 0.24% of total assets as of March 31, 2019. The increase reflects the transfer of one loan relationship with an outstanding balance of $1.9 million as of March 31, 2020, to nonaccrual status. Net charge-offs for the three-month period ended March 31, 2020, were $121,000, compared to $553,000 of net charge-offs in the first quarter of last year. The allowance for loan losses totaled $9,088,000 as of March 31, 2020 compared to $8,349,000 as of March 31, 2019. As of March 31, 2020, the allowance for loan losses was 331% of nonperforming loans, compared to 761% as of March 31, 2019.

Net interest income (fully taxable equivalent, or fte) was $9,903,000 during the first quarter of 2020, which is $367,000 higher than the comparable three-month period of last year. A $69.7 million increase in average loans outstanding contributed to the increased interest income. The fte yield on interest-earning assets improved four basis points compared to the three months ended March 31, 2019, while the cost of funds increased one basis point. As a result, the annualized net interest margin (fte) improved to 3.48% from 3.43% in the quarter ended March 31, 2020 compared to the prior year period.

Other income totaled $1,654,000 in the first quarter of 2020 compared to $1,560,000 during the same period of last year. The increase is due primarily to a $32,000 increase in service charges and a $38,000 increase net gains on sales of securities. All other categories of other income increased $24,000, net.

Operating expenses totaled $7,059,000 in the first quarter and were $411,000 higher than the $6,648,000 recorded in the same period of last year. Salaries and benefits costs rose $128,000 while all other operating expenses increased $283,000, net.

Mr. Critelli stated, “Our first quarter results were on track for a solid start to the year prior to the impact from the Covid-19 pandemic. We have since focused our efforts on providing the products and services that will assist our customers through the crisis. In addition, we are providing the resources to allow our employees the ability to perform their functions in a safe work environment. We feel we have been successful on both fronts and remain committed to providing the financial resources that will help

our customers emerge from the current situation financially sound. We are doing everything we can to keep current of developments during this period of rapid change, and encourage our customers to contact us for assistance. We look forward to serving our stockholders and customers during these trying times. ”

Norwood Financial Corp. is the parent company of Wayne Bank, which operates from fifteen offices throughout Northeastern Pennsylvania and twelve offices in the Southern Tier of New York. The Company’s stock trades on the Nasdaq Global Market under the symbol “NWFL”.

Forward-Looking Statements.

The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words “believes”, “anticipates”, “contemplates”, “expects”, and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Those risks and uncertainties include changes in federal and state laws, changes in interest rates, the risks and uncertainty posed by, and the effect and impact of, the COVID-19 pandemic on the economy and the Company’s results of operation and financial condition, the ability to control costs and expenses, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Measures

This release references tax-equivalent net interest income, which is a non-GAAP (Generally Accepted Accounting Principles) financial measure. Tax-equivalent net interest income is derived from GAAP interest income and net interest income using an assumed tax rate of 21%. We believe the presentation of net interest income on a tax–equivalent basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. The following reconciles net interest income to net interest income on a fully taxable-equivalent basis:

(dollars in thousands)	Three months ended March 31,
	2020		2019
Net interest income	$	9,665	$	9,271
Tax equivalent basis adjustment using 21% marginal tax rate		238		265
Net interest income on a fully taxable equivalent basis	$	9,903	$	9,536

This release also references average tangible equity, which is also a non-GAAP financial measure. Average tangible equity is calculated by deducting average goodwill and other intangible assets from average stockholders’ equity. The Company believes that disclosure of tangible equity ratios enhances investor understanding of our financial position and improves the comparability of our financial data. The following reconciles average equity to average tangible equity:

(dollars in thousands)	Three months ended March 31,
	2020			2019
Average equity	$	140,962		$	124,746
Average goodwill and other intangibles		(11,552	)		(11,650	)
Average tangible equity	$	129,410		$	113,096

Contact: William S. Lance Executive Vice President & Chief Financial Officer NORWOOD FINANCIAL CORP 570-253-8505 www.waynebank.com

NORWOOD FINANCIAL CORP.

Consolidated Balance Sheets

(dollars in thousands, except share and per share data)

(unaudited)

	March 31
	2020			2019
ASSETS
Cash and due from banks	$	14,712		$	13,583
Interest-bearing deposits with banks		23,706			6,291
Cash and cash equivalents		38,418			19,874
Securities available for sale		196,998			240,621
Loans receivable		928,565			864,198
Less: Allowance for loan losses		9,088			8,349
Net loans receivable		919,477			855,849
Regulatory stock, at cost		3,770			3,132
Bank premises and equipment, net		14,071			14,165
Bank owned life insurance		38,971			38,134
Foreclosed real estate owned		1,077			1,792
Accrued interest receivable		3,669			4,089
Goodwill		11,331			11,331
Other intangible assets		212			307
Other assets		14,297			14,301
TOTAL ASSETS	$	1,242,291		$	1,203,595
LIABILITIES
Deposits:
Non-interest bearing demand	$	213,359		$	206,806
Interest-bearing		776,801			767,609
Total deposits		990,160			974,415
Short-term borrowings		40,656			37,824
Other borrowings		51,350			47,955
Accrued interest payable		2,895			2,457
Other liabilities		15,043			14,172
TOTAL LIABILITIES		1,100,104			1,076,823
STOCKHOLDERS' EQUITY
Preferred Stock, no par value per share, authorized 5,000,000 shares		—			—
Common Stock, $.10 par value per share,
authorized: 2020: 20,000,000 shares, 2019: 10,000,000 shares		634			630
issued: 2020: 6,342,568 shares, 2019: 6,301,263 shares
Surplus		49,644			48,559
Retained earnings		88,032			80,115
Treasury stock, at cost: 2020: 12,007 shares, 2019: 13,807 shares		(400	)		(455	)
Accumulated other comprehensive income (loss)		4,277			(2,077	)
TOTAL STOCKHOLDERS' EQUITY		142,187			126,772
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,242,291		$	1,203,595

NORWOOD FINANCIAL CORP.

Consolidated Statements of Income

(dollars in thousands, except per share data)

(unaudited)

	Three Months Ended March 31,
	2020		2019
INTEREST INCOME
Loans receivable, including fees	$	10,683	$	9,970
Securities		1,179		1,441
Other		6		15
Total Interest income		11,868		11,426
INTEREST EXPENSE
Deposits		1,790		1,729
Short-term borrowings		111		123
Other borrowings		302		303
Total Interest expense		2,203		2,155
NET INTEREST INCOME		9,665		9,271
PROVISION FOR LOAN LOSSES		700		450
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		8,965		8,821
OTHER INCOME
Service charges and fees		1,063		1,031
Income from fiduciary activities		153		142
Net realized gains on sales of securities		38		—
Gains on sales of loans, net		56		42
Earnings and proceeds on life insurance policies		208		202
Other		136		143
Total other income		1,654		1,560
OTHER EXPENSES
Salaries and employee benefits		3,777		3,649
Occupancy, furniture and equipment		968		924
Data processing and related operations		437		448
Taxes, other than income		214		161
Professional fees		218		250
FDIC Insurance assessment		—		71
Foreclosed real estate		16		23
Amortization of intangibles		22		29
Other		1,407		1,093
Total other expenses		7,059		6,648
INCOME BEFORE TAX		3,560		3,733
INCOME TAX EXPENSE		481		543
NET INCOME	$	3,079	$	3,190
Basic earnings per share	$	0.49	$	0.51
Diluted earnings per share	$	0.49	$	0.51

NORWOOD FINANCIAL CORP.

Financial Highlights (Unaudited)

(dollars in thousands, except per share data)

For the Three Months Ended March 31	2020			2019
Net interest income	$	9,665		$	9,271
Net income		3,079			3,190
Net interest spread (fully taxable equivalent)		3.23	%		3.20	%
Net interest margin (fully taxable equivalent)		3.48	%		3.43	%
Return on average assets		1.01	%		1.09	%
Return on average equity		8.79	%		10.37	%
Return on average tangible equity		9.57	%		11.44	%
Basic earnings per share	$	0.49		$	0.51
Diluted earnings per share	$	0.49		$	0.51
As of March 31
Total assets	$	1,242,291		$	1,203,595
Total loans receivable		928,565			864,198
Allowance for loan losses		9,088			8,349
Total deposits		990,160			974,415
Stockholders' equity		142,187			126,772
Trust assets under management		137,059			159,339
Book value per share	$	22.52		$	20.16
Tangible book value per share	$	20.70		$	18.31
Equity to total assets		11.45	%		10.53	%
Allowance to total loans receivable		0.98	%		0.97	%
Nonperforming loans to total loans		0.30	%		0.13	%
Nonperforming assets to total assets		0.31	%		0.24	%

NORWOOD FINANCIAL CORP.

Consolidated Balance Sheets (unaudited)

(dollars in thousands)

	March 31 2020		December 31 2019		September 30 2019		June 30 2019		March 31 2019
ASSETS
Cash and due from banks	$	14,712	$	15,038	$	20,067	$	14,207	$	13,583
Interest-bearing deposits with banks		23,706		377		848		4,265		6,291
Cash and cash equivalents		38,418		15,415		20,915		18,472		19,874
Securities available for sale		196,998		210,205		211,199		238,083		240,621
Loans receivable		928,565		924,581		905,582		887,673		864,198
Less: Allowance for loan losses		9,088		8,509		8,405		8,228		8,349
Net loans receivable		919,477		916,072		897,177		879,445		855,849
Regulatory stock, at cost		3,770		4,844		3,137		3,155		3,132
Bank owned life insurance		38,971		38,763		38,562		38,340		38,134
Bank premises and equipment, net		14,071		14,228		13,927		13,880		14,165
Foreclosed real estate owned		1,077		1,556		1,572		1,677		1,792
Goodwill and other intangibles		11,543		11,566		11,588		11,611		11,638
Other assets		17,966		17,961		17,779		17,865		18,390
TOTAL ASSETS	$	1,242,291	$	1,230,610	$	1,215,856	$	1,222,528	$	1,203,595
LIABILITIES
Deposits:
Non-interest bearing demand	$	213,359	$	207,299	$	231,211	$	221,764	$	206,806
Interest-bearing deposits		776,801		750,230		743,222		759,460		767,609
Total deposits		990,160		957,529		974,433		981,224		974,415
Borrowings		92,006		118,694		88,684		92,118		85,779
Other liabilities		17,938		16,959		17,845		17,703		16,629
TOTAL LIABILITIES		1,100,104		1,093,182		1,080,962		1,091,045		1,076,823
STOCKHOLDERS' EQUITY		142,187		137,428		134,894		131,483		126,772
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,242,291	$	1,230,610	$	1,215,856	$	1,222,528	$	1,203,595

NORWOOD FINANCIAL CORP.

Consolidated Statements of Income (unaudited)

(dollars in thousands, except per share data)

Three months ended	March 31 2020			December 31 2019			September 30 2019			June 30 2019			March 31 2019
INTEREST INCOME
Loans receivable, including fees	$	10,683		$	10,815		$	10,776		$	10,328		$	9,970
Securities		1,179			1,159			1,278			1,435			1,441
Other		6			11			5			51			15
Total interest income		11,868			11,985			12,059			11,814			11,426
INTEREST EXPENSE
Deposits		1,790			1,784			1,787			1,839			1,729
Borrowings		413			368			381			363			426
Total interest expense		2,203			2,152			2,168			2,202			2,155
NET INTEREST INCOME		9,665			9,833			9,891			9,612			9,271
PROVISION FOR LOAN LOSSES		700			200			300			300			450
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		8,965			9,633			9,591			9,312			8,821
OTHER INCOME
Service charges and fees		1,063			1,168			1,200			1,052			1,031
Income from fiduciary activities		153			156			167			145			142
Net realized gains on sales of securities		38			21			169			64			—
Gains on sales of loans, net		56			44			15			67			42
Earnings and proceeds on life insurance policies		208			200			222			207			202
Other		136			107			109			106			143
Total other income		1,654			1,696			1,882			1,641			1,560
OTHER EXPENSES
Salaries and employee benefits		3,777			3,740			3,667			3,599			3,649
Occupancy, furniture and equipment, net		968			938			916			940			924
Foreclosed real estate		16			9			24			(10	)		23
FDIC insurance assessment		—			3			(5	)		84			71
Other		2,298			2,398			2,189			2,172			1,981
Total other expenses		7,059			7,088			6,791			6,785			6,648
INCOME BEFORE TAX		3,560			4,241			4,682			4,168			3,733
INCOME TAX EXPENSE		481			645			775			646			543
NET INCOME	$	3,079		$	3,596		$	3,907		$	3,522		$	3,190
Basic earnings per share	$	0.49		$	0.57		$	0.62		$	0.56		$	0.51
Diluted earnings per share	$	0.49		$	0.57		$	0.62		$	0.56		$	0.51
Book Value per share	$	22.52		$	21.67		$	21.41		$	20.90		$	20.16
Tangible Book Value per share		20.70			19.84			19.57			19.06			18.31
Return on average assets (annualized)		1.01	%		1.18	%		1.27	%		1.16	%		1.09	%
Return on average equity (annualized)		8.79	%		10.42	%		11.56	%		10.93	%		10.37	%
Return on average tangible equity (annualized)		9.57	%		11.38	%		12.66	%		12.01	%		11.44	%
Net interest spread (fte)		3.23	%		3.33	%		3.35	%		3.24	%		3.20	%
Net interest margin (fte)		3.48	%		3.59	%		3.60	%		3.49	%		3.43	%
Allowance for loan losses to total loans		0.98	%		0.92	%		0.93	%		0.93	%		0.97	%
Net charge-offs to average loans (annualized)		0.05	%		0.04	%		0.05	%		0.19	%		0.26	%
Nonperforming loans to total loans		0.30	%		0.09	%		0.15	%		0.15	%		0.13	%
Nonperforming assets to total assets		0.31	%		0.19	%		0.24	%		0.25	%		0.24	%