Company: NWFL
Filing Date: 2025-09-19
Form Type: S-4
Source: 0001193125-25-208580
Chunk: 225

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-09-19
Form: S-4
Chunk 225
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 associated with the matching contribution and discretionary contribution was $175,000 and $168,000 in 2024 and 2023, respectively. Deferred Compensation Agreement The Company has an executive deferred compensation plan, whereby each executive officer may voluntarily participate and elect each year to defer a portion or all of their compensation and bonus. The deferrals, along with accumulated earnings, are payable at retirement. The Company accrues the estimated annual cost of the deferred amounts that will be payable at retirement. At December 31, 2024 and 2023, the accumulated liability was approximately $953,000 and $482,000, respectively, and is included in accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets. Supplemental Executive Retirement Plan The Company maintains a supplemental executive retirement plan for certain executives. At December 31, 2024 and 2023, the accumulated liability was $863,000 and $620,000, respectively, and is included in accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets. The expense for the years ended December 31, 2024 and 2023, was $282,000 and $236,000, respectively. Employee Stock Ownership Plan (ESOP) During 2021, the ESOP borrowed from the Company to purchase 222,180 shares of stock at an average price of $13.04 per share. When loan payments are made, ESOP shares are allocated to participants based on relative compensation and expense is recorded. The Company’s related expense for the ESOP was $170,000 and $140,000 in 2024 and 2023, respectively. Shares held by the ESOP were as follows (dollars in thousands):

|                               |     | 2024 |         |     | 2023 |         |
| Allocated to participants     |     |      |  44,436 |     |      |  33,327 |
| Unearned                      |     |      | 177,744 |     |      | 188,853 |
| Total ESOP shares             |     |      | 222,180 |     |      | 222,180 |
| Fair value of unearned shares |     |    $ |   2,716 |     |    $ |   2,638 |

12. Stock-Based Compensation The Company’s stockholders approved the PB Bankshares, Inc. 2022 Equity Incentive Plan (the “2022 Equity Incentive Plan”) at the Annual Meeting on