Company: NWFL
Filing Date: 2025-09-19
Form Type: S-4
Source: 0001193125-25-208580
Chunk: 224

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-09-19
Form: S-4
Chunk 224
---
31, 2024 and 2023 (in thousands):

|                                               |     | 2024 | December 31, |     | 2023 | December 31, |
|:----------------------------------------------|:----|:-----|-------------:|:----|:-----|-------------:|
| Commitments to grant loans                    |     | $    |       23,958 |     | $    |       31,481 |
| Unfunded commitments under lines of credit    |     |      |       12,409 |     |      |       12,186 |
| Standby letters of credit                     |     |      |        6,698 |     |      |        1,808 |
| Total off-balance sheet financial instruments |     | $    |       43,065 |     | $    |       45,475 |

Outstanding loan commitments represent the unused portion of loan commitments available to individuals and companies as long as there is no violation of any condition established in the contract. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company upon extension of credit is based upon management’s credit evaluation of the customer. Various types of collateral may be held, including property and marketable securities. The credit risk involved in these financial instruments is essentially the same as that involved in extending loan facilities to customers. 10. Contingencies In the normal course of business, the Company is subject to various lawsuits involving matters generally incidental to its business. Management is of the opinion that the ultimate liability, if any, resulting from any pending actions or proceedings will not have a material effect on the 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