Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 220

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 220
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     |      |       |
| Deferred loan costs                                |     |      |   147 |     |      |   138 |
| Right-of-use assets                                |     |      |   329 |     |      |   179 |
| Property and equipment                             |     |      |   191 |     |      |   156 |
| Prepaid expenses                                   |     |      |     5 |     |      |     9 |
| Gross deferred tax liabilities                     |     |      |   672 |     |      |   482 |
| Net Deferred Tax Assets                            |     | $    | 1,568 |     | $    | 1,732 |

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that, some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences F-28

PB BANKSHARES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Management concluded no valuation allowance was necessary. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2021. 9. Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk The Company 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. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The Company had the following off-balance sheet financial instruments whose contract amounts represent credit risk at December 31, 2024 and 2023 (in thousands):

|                                               |     | 2024 | December 31, |     | 2023 | December 31, |
|:----------------------------------------------|:----|:-----|-------------:|:----|:-----|-------------: