Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 140

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 140
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 the section entitled “Relevant Public Companies Analysis – PB Bankshares” for the last ten years. Exercising its professional judgment, Stephens selected a range of 0.90x to 1.15x as the terminal price to tangible book value multiples for the discounted cash flow analysis. The following table summarizes the range of terminal values of PB Bankshares that Stephens calculated based upon PB Bankshares’s estimated end of 93

period tangible common equity (in millions of $) at December 31, 2029 and the range of terminal price to tangible book value multiples of 0.90x to 1.15x:

| 2029 Presence End of Period TCE |     | $ |  56.6 |     | $ |  56.6 |     | $ |  56.6 |     | $ |  56.6 |     | $ |  56.6 |
| x Terminal Multiple             |     |   | 0.90x |     |   | 0.95x |     |   | 1.05x |     |   | 1.10x |     |   | 1.15x |
| Terminal Value                  |     | $ |  51.0 |     | $ |  53.8 |     | $ |  59.5 |     | $ |  62.3 |     | $ |  65.1 |

Stephens considered discount rates from 14.0% to 16.0% for PB Bankshares. Based on this analysis, Stephens derived a range for the implied equity value of PB Bankshares from $12.44 per share to $16.29 per share. The discounted cash flow analysis is a widely used valuation methodology, but the results of this methodology are highly dependent on the assumptions that must be made, including asset and earnings growth rates, terminal values, capital levels, and discount rates. The analysis did not purport to be indicative of the actual values or expected values of PB Bankshares. The actual results may vary from the projected results, any of these assumptions might not be realized in future operations and the variations may be material. Miscellaneous: The preparation of a fairness opinion is a complex process and is not susceptible to a partial analysis or summary description. Stephens believes that its analyses must be considered as a whole and that selecting portions of its analyses, without considering the analyses taken as a whole, would create an incomplete view of the process