Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 49

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 49
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 and voting interest.

Norwood’s certificate of incorporation authorizes the issuance of up to 20,000,000 shares of common stock and 5,000,000 shares of
preferred stock. Any future issuance of equity securities by Norwood may result in dilution in the percentage ownership and voting interest of Norwood’s shareholders. Also, any securities Norwood issues in the future may be valued differently,
and the issuance of equity securities for future services, acquisitions or other corporate actions may have the effect of diluting the value of the shares held by Norwood shareholders, including former PB Bankshares shareholders who become Norwood
shareholders. Norwood shareholders do not have any preemptive rights to acquire additional shares in the event of future issuances of equity by Norwood.

Our business is geographically concentrated and is subject to regional economic factors that could have an adverse impact on our business.

Substantially all of our business is with customers in our market area of Northeastern Pennsylvania and the Southern Tier of New York. Most of
our customers are consumers and small and medium-sized businesses which are dependent upon the regional economy. Adverse changes in economic and business conditions in our markets could adversely affect our
borrowers, their ability to repay their loans and to borrow additional funds, and consequently our financial condition and performance.

Additionally, we often secure our loans with real estate collateral, most of which is located in Northeastern Pennsylvania or the Southern
Tier of New York. A decline in local economic conditions could adversely affect the values of such real estate. Consequently, a decline in local economic conditions may have a greater effect on our earnings and capital than on the earnings and
capital of larger financial institutions whose real estate loan portfolios are geographically diverse.

We may not be able to attract and retain key personnel.

Our success depends, in large part, on its ability to attract and retain qualified, key personnel. Competition for
qualified personnel in the banking industry is intense, and there can be no assurance that we will continue to be successful in attracting, recruiting and retaining the necessary skilled managerial, marketing and technical personnel for the
successful operation of our existing lending, operations, accounting and administrative functions or to support the expansion of the functions necessary for our future growth. Limitations in the way regulated financial institutions can compensate
their officers and employees may make it more difficult for regulated financial institutions to compete with unregulated companies for talent. There can be no assurance that we will continue to be successful in attracting, recruiting and retaining
the necessary skilled managerial, marketing and technical