Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 217

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 217
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 the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable prepaid rent, initial direct costs and any incentives received from the lessor. Lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The following tables present information about the Company’s leases as of and for the year ended December 31, 2024 and 2023 (dollars in thousands):

|                                                                        |     |   | December 31, 
         2024 |       |     |   | December 31, 
         2023 |       |
|:-----------------------------------------------------------------------|:----|:--|-------------:|:------|:----|:--|-------------:|:------|
| Right-of-use assets                                                    |     | $ |        1,567 |       |     | $ |          852 |       |
| Lease liabilities                                                      |     | $ |        1,536 |       |     | $ |          814 |       |
| Weighted average remaining lease term                                  |     |   |        11.08 | years |     |   |        12.31 | years |
| Weighted average discount rate                                         |     |   |         4.81 | %     |     |   |         4.73 | %     |
| Operating lease cost                                                   |     | $ |          111 |       |     | $ |           97 |       |
| Short-term lease cost                                                  |     |   |            8 |       |     |   |           82 |       |
| Total lease costs                                                      |     | $ |          119 |       |     | $ |          179 |       |
| Cash paid for amounts included in the measurement of lease liabilities |     | $ |          150 |       |     | $ |          130 |       |

F-25

PB BANKSHARES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows:

| Lease payments due for the