Exhibit 99.1

FOR IMMEDIATE RELEASE

NORWOOD FINANCIAL CORP ANNOUNCES FIRST QUARTER EARNINGS

Honesdale, Pennsylvania - April 23, 2021

Lewis J. Critelli, President and Chief Executive Officer of Norwood Financial Corp (Nasdaq Global Market – NWFL) and its subsidiary, Wayne Bank, announced record earnings of $5,542,000 for the three months ended March 31, 2021, increasing 80% from the $3,079,000 recorded during the corresponding period of 2020. The increase reflects the benefits derived from the Company’s acquisition of UpState New York Bancorp, Inc. (“UpState”), which closed on July 7, 2020. Earnings per share on a fully diluted basis were $0.67 in the first quarter of 2021 compared to $0.49 in the first quarter of 2020. The annualized return on average assets was 1.18% in the first quarter of 2021 and the annualized return on average equity was 11.39%, compared to 1.01% and 8.79%, respectively, in the first quarter of 2020.

Total assets were $2.010 billion as of March 31, 2021, an increase of $767.5 million compared to March 31, 2020. As of March 31, 2021, total loans increased $493.0 million compared to March 31, 2020, total deposits increased $695.0 million compared to March 31, 2020, and stockholders’ equity increased $52.9 million compared to March 31, 2020. The increases reflect the balances acquired from UpState and the impact from economic stimulus, including loans originated through the Payroll Protection Program (“PPP”). During the three months ended March 31, 2021, we originated 633 new PPP loans totaling $54.3 million, and had $30.0 million of loans forgiven that were originated in previous periods. As of March 31, 2021, the total of all PPP loans outstanding was $119.3 million.

Net interest income (fully taxable equivalent, or fte) was $15,981,000 during the three months ended March 31, 2021, which is $6,078,000 higher than the comparable three-month period of 2020. A $491.3 million increase in average loans outstanding over the corresponding period in 2020 contributed to the increased interest income. During the three-months ended March 31, 2021, the fte yield on interest-earning assets decreased thirty-two basis points compared to the three months ended March 31, 2020, while the cost of funds decreased fifty-five basis points. As a result, the annualized net interest spread (fte) improved to 3.46% from 3.23% in the quarter ended March 31, 2021 compared to the corresponding three-month period in 2020.

Other income totaled $1,989,000 for the three months ended March 31, 2021 compared to $1,654,000 during the corresponding period of last year. The increase is due primarily to an $184,000 increase in service charges due primarily to service charges and fees related to the acquisition of UpState. Earnings and proceeds on bank-owned life insurance policies also increased $166,000 over the first quarter of last year. All other categories of other income decreased $15,000, net.

Operating expenses totaled $9,452,000 in the three months ended March 31, 2021 and were $2,393,000 higher than the $7,059,000 recorded in the same period of last year. The increase reflects the costs of operations acquired from UpState, including four new Community Offices.

Mr. Critelli stated, “Our first quarter results reflect the revenue generated and the costs associated with our acquisition of UpState, as well as the continued impact of economic stimulus on our balance sheet. We remain committed to providing the financial resources that will help our customers emerge from the restrictions related to the COVID-19 pandemic, and continue to provide the resources to allow our employees the ability to perform their functions in a safe work environment. We look forward to continuing to serve our expanded base of stockholders and customers.”

Norwood Financial Corp. is the parent company of Wayne Bank, which operates from fourteen offices throughout Northeastern Pennsylvania and sixteen offices in Delaware, Sullivan, Ontario, Otsego and Yates Counties, 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:

	Three months ended March 31,
(dollars in thousands)
	2021		2020
Net interest income	$	15,776	$	9,665
Tax equivalent basis adjustment using 21% marginal tax rate		205		238
Net interest income on a fully taxable equivalent basis	$	15,981	$	9,903

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:

	Three months ended March 31,
(dollars in thousands)
	2021			2020
Average equity	$	197,243		$	140,962
Average goodwill and other intangibles		(29,798	)		(11,552	)
Average tangible equity	$	167,445		$	129,410

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
	2021			2020
ASSETS
Cash and due from banks	$	20,364		$	14,712
Interest-bearing deposits with banks		190,135			23,706
Cash and cash equivalents		210,499			38,418
Securities available for sale		275,224			196,998
Loans receivable		1,421,568			928,565
Less: Allowance for loan losses		14,509			9,088
Net loans receivable		1,407,059			919,477
Regulatory stock, at cost		4,043			3,770
Bank premises and equipment, net		17,648			14,071
Bank owned life insurance		39,471			38,971
Foreclosed real estate owned		844			1,077
Accrued interest receivable		6,317			3,669
Goodwill		29,290			11,331
Other intangible assets		495			212
Other assets		18,946			14,297
TOTAL ASSETS	$	2,009,836		$	1,242,291
LIABILITIES
Deposits:
Non-interest bearing demand	$	415,395		$	213,359
Interest-bearing		1,269,793			776,801
Total deposits		1,685,188			990,160
Short-term borrowings		72,917			40,656
Other borrowings		39,366			51,350
Accrued interest payable		1,370			2,895
Other liabilities		15,888			15,043
TOTAL LIABILITIES		1,814,729			1,100,104
STOCKHOLDERS’ EQUITY
Preferred Stock, no par value per share, authorized 5,000,000 shares		—			—
Common Stock, $.10 par value per share, authorized: 20,000,000 shares, issued: 2021: 8,240,081 shares, 2020: 6,342,568 shares		824			634
Surplus		95,717			49,644
Retained earnings		97,201			88,032
Treasury stock, at cost: 2021: 21,568 shares, 2020: 12,007 shares		(656	)		(400	)
Accumulated other comprehensive income		2,021			4,277
TOTAL STOCKHOLDERS’ EQUITY		195,107			142,187
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,009,836		$	1,242,291

NORWOOD FINANCIAL CORP.

Consolidated Statements of Income

(dollars in thousands, except per share data)

(unaudited)

	Three Months Ended March 31,
	2021		2020
INTEREST INCOME
Loans receivable, including fees	$	16,146	$	10,683
Securities		1,112		1,179
Other		43		6
Total Interest income		17,301		11,868
INTEREST EXPENSE
Deposits		1,255		1,790
Short-term borrowings		69		111
Other borrowings		201		302
Total Interest expense		1,525		2,203
NET INTEREST INCOME		15,776		9,665
PROVISION FOR LOAN LOSSES		1,500		700
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		14,276		8,965
OTHER INCOME
Service charges and fees		1,247		1,063
Income from fiduciary activities		160		153
Net realized gains on sales of securities		21		38
Gains on sales of loans, net		29		56
Earnings and proceeds on life insurance policies		374		208
Other		158		136
Total other income		1,989		1,654
OTHER EXPENSES
Salaries and employee benefits		4,953		3,777
Occupancy, furniture and equipment		1,220		968
Data processing and related operations		603		437
Taxes, other than income		305		214
Professional fees		540		218
FDIC Insurance assessment		181		0
Foreclosed real estate		30		16
Amortization of intangibles		35		22
Other		1,585		1,407
Total other expenses		9,452		7,059
INCOME BEFORE TAX		6,813		3,560
INCOME TAX EXPENSE		1,271		481
NET INCOME	$	5,542	$	3,079
Basic earnings per share	$	0.68	$	0.49
Diluted earnings per share	$	0.67	$	0.49

NORWOOD FINANCIAL CORP.

Financial Highlights (Unaudited)

(dollars in thousands, except per share data)

For the Three Months Ended March 31	2021			2020
Net interest income	$	15,776		$	9,665
Net income		5,542			3,079
Net interest spread (fully taxable equivalent)		3.46	%		3.23	%
Net interest margin (fully taxable equivalent)		3.59	%		3.48	%
Return on average assets		1.18	%		1.01	%
Return on average equity		11.39	%		8.79	%
Return on average tangible equity		13.42	%		9.57	%
Basic earnings per share	$	0.68		$	0.49
Diluted earnings per share	$	0.67		$	0.49
As of March 31	2021			2020
Total assets	$	2,009,836		$	1,242,291
Total loans receivable		1,421,568			928,565
Allowance for loan losses		14,509			9,088
Total deposits		1,685,188			990,160
Stockholders’ equity		195,107			142,187
Trust assets under management		173,263			137,059
Book value per share	$	23.82		$	22.52
Tangible book value per share	$	20.20		$	20.70
Equity to total assets		9.71	%		11.45	%
Allowance to total loans receivable		1.02	%		0.98	%
Nonperforming loans to total loans		0.83	%		0.30	%
Nonperforming assets to total assets		0.63	%		0.31	%

NORWOOD FINANCIAL CORP.

Consolidated Balance Sheets (unaudited)

(dollars in thousands)

	March		December 31		September 30		June 30		March 31
	2021		2020		2020		2020		2020
ASSETS
Cash and due from banks	$	20,364	$	19,445	$	23,874	$	15,387	$	14,712
Interest-bearing deposits with banks		190,135		92,248		100,566		67,989		23,706
Cash and cash equivalents		210,499		111,693		124,440		83,376		38,418
Securities available for sale		275,224		226,586		197,436		196,735		196,998
Loans receivable		1,421,568		1,410,732		1,414,662		988,679		928,565
Less: Allowance for loan losses		14,509		13,150		11,674		10,312		9,088
Net loans receivable		1,407,059		1,397,582		1,402,988		978,367		919,477
Regulatory stock, at cost		4,043		3,981		3,876		3,677		3,770
Bank owned life insurance		39,471		39,608		39,400		39,183		38,971
Bank premises and equipment, net		17,648		17,814		18,124		14,040		14,071
Foreclosed real estate owned		844		965		965		965		1,077
Goodwill and other intangibles		29,785		29,820		30,778		11,522		11,543
Other assets		25,263		23,815		24,100		26,676		17,966
TOTAL ASSETS	$	2,009,836	$	1,851,864	$	1,842,107	$	1,354,541	$	1,242,291
LIABILITIES
Deposits:
Non-interest bearing demand	$	415,395	$	359,559	$	372,237	$	284,754	$	213,359
Interest-bearing deposits		1,269,793		1,175,826		1,143,685		801,484		776,801
Total deposits		1,685,188		1,535,385		1,515,922		1,086,238		990,160
Borrowings		112,283		105,762		115,732		106,027		92,006
Other liabilities		17,258		15,932		19,906		19,612		17,938
TOTAL LIABILITIES		1,814,729		1,657,079		1,651,560		1,211,877		1,100,104
STOCKHOLDERS’ EQUITY		195,107		194,785		190,547		142,664		142,187
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,009,836	$	1,851,864	$	1,842,107	$	1,354,541	$	1,242,291

NORWOOD FINANCIAL CORP.

Consolidated Statements of Income (unaudited)

(dollars in thousands, except per share data)

	March 31			December 31			September 30			June 30			March 31
Three months ended	2021			2020			2020			2020			2020
INTEREST INCOME
Loans receivable, including fees	$	16,146		$	16,336		$	16,260		$	10,767		$	10,683
Securities		1,112			1,064			1,031			1,063			1,179
Other		43			29			18			19			6
Total interest income		17,301			17,429			17,309			11,849			11,868
INTEREST EXPENSE
Deposits		1,255			1,514			1,676			1,630			1,790
Borrowings		270			301			303			352			413
Total interest expense		1,525			1,815			1,979			1,982			2,203
NET INTEREST INCOME		15,776			15,614			15,330			9,867			9,665
PROVISION FOR LOAN LOSSES		1,500			1,600			1,850			1,300			700
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		14,276			14,014			13,480			8,567			8,965
OTHER INCOME
Service charges and fees		1,247			1,913			1,301			837			1,063
Income from fiduciary activities		160			150			205			175			153
Net realized gains on sales of securities		21			—			33			—			38
Gains on sales of loans, net		29			241			164			65			56
Earnings and proceeds on life insurance policies		374			208			217			212			208
Other		158			149			152			103			136
Total other income		1,989			2,661			2,072			1,392			1,654
OTHER EXPENSES
Salaries and employee benefits		4,953			5,243			4,812			3,289			3,777
Occupancy, furniture and equipment, net		1,220			1,165			1,109			906			968
Foreclosed real estate		30			8			31			(2	)		16
FDIC insurance assessment		181			213			144			42			—
Merger related		22			66			386			1,597			—
Other		3,046			3,214			2,898			2,260			2,298
Total other expenses		9,452			9,909			9,380			8,092			7,059
INCOME BEFORE TAX		6,813			6,766			6,172			1,867			3,560
INCOME TAX EXPENSE		1,271			1,253			1,173			379			481
NET INCOME	$	5,542		$	5,513		$	4,999		$	1,488		$	3,079
Basic earnings per share	$	0.68		$	0.67		$	0.62		$	0.24		$	0.49
Diluted earnings per share	$	0.67		$	0.67		$	0.62		$	0.24		$	0.49
Book Value per share	$	23.82		$	23.72		$	23.30		$	22.62		$	22.52
Tangible Book Value per share		20.20			20.10			19.55			20.80			20.70
Return on average assets (annualized)		1.18	%		1.18	%		1.11	%		0.45	%		1.01	%
Return on average equity (annualized)		11.39	%		11.32	%		10.64	%		4.17	%		8.79	%
Return on average tangible equity (annualized)		13.42	%		13.46	%		11.75	%		4.54	%		9.57	%
Net interest spread (fte)		3.46	%		3.50	%		3.55	%		3.03	%		3.23	%
Net interest margin (fte)		3.59	%		3.65	%		3.73	%		3.25	%		3.48	%
Allowance for loan losses to total loans		1.02	%		0.93	%		0.83	%		1.04	%		0.98	%
Net charge-offs to average loans (annualized)		0.04	%		0.04	%		0.14	%		0.03	%		0.05	%
Nonperforming loans to total loans		0.83	%		0.85	%		0.89	%		0.30	%		0.30	%
Nonperforming assets to total assets		0.63	%		0.70	%		0.74	%		0.29	%		0.31	%