Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 232

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 232
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out of scope for Topic 606)   |     |              |   210 |     |      | 204 |   |
| Total noninterest income                          |     |            $ | 1,313 |     |    $ | 785 |   |

Contract Balances A contract assets balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transaction activity, or standard month-end revenue accruals. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2024 and 2023, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize as an expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the assets that would have resulted from capitalizing these costs would have been amortized in one year or less. F-38

PB BANKSHARES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 17. Parent Company Only Financial Statements Condensed financial statements of PB Bankshares, Inc. are as follows for December 31, (in thousands): Parent Company Balance Sheets As of December 31,

| Assets                                     |     | 2024 |        |     | 2023 |        |
|:-------------------------------------------|:----|:-----|-------:|:----|:-----|-------:|
| Cash and cash equivalents                  |     | $    |  3,921 |     | $    |  5,513 |
| ESOP Loan Receivable                       |     |      |  2,414 |     |      |  2,527 |