Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 219

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 219
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 consolidated balance sheet or of operations of the Company. 11. Employee Benefits 401(k) Retirement Plan The Company maintains a 401(k) Retirement Plan for eligible employees. The plan provides a matching contribution for all employees. The matching contribution is an amount equal to 100% of the participant’s elective contribution not to exceed 3% of the participant’s plan salary, plus 50% of the participant’s contribution that exceeds 3% of their plan salary but not to exceed 5% of their plan salary. With the freezing of the Pension F-29

PB BANKSHARES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Plan, the Company initiated a 2% discretionary contribution to the 401(k) for employees beginning January 1, 2019. The Company’s related expense 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):

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