Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 25

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 25
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 the approval of the merger agreement by the shareholders of PB Bankshares, it                                                                                                                                               
 receives a superior proposal from a third party and the board determines, in good faith, based on the advice of legal counsel, that failure to pursue such superior proposal is reasonably likely to cause the directors of PB Bankshares to breach their 
 fiduciary duties under applicable law, and, provided that Bankshares is not in breach of the provisions of the merger agreement and Norwood does not make an offer at least as favorable to PB Bankshares within five calendar days after notice, and PB  
 Bankshares pays Norwood a termination fee of $2.4 million; or                                                                                                                                                                                             |

| • |     | by PB Bankshares, at any time during the five day period commencing on the 15th calendar day immediately prior to the closing date of the merger (the “Determination Date”) if both of the following conditions are satisfied: |

| • |     | the average of the daily closing sales prices for the Norwood common stock for the 20 consecutive trading days                             
 immediately preceding the Determination Date (the “Norwood Market Value”), is less than 80% of initial Norwood market value of $25.77; and |

| • |     | the number obtained by dividing the Norwood Market Value on the Determination Date by the initial Norwood market                                                                                                                                          
 value of $25.77 is less than the number obtained by dividing the average closing prices of the KBW NASDAQ Regional Bank Index for the 20 consecutive trading days immediately preceding the Determination Date divided by the closing value of KBW NASDAQ 
 Regional Bank Index on July 3, 2025, minus 0.20; unless within five business days of notice of such termination, Norwood notifies PB Bankshares that it will increase the exchange ratio for the stock consideration so that the Norwood Market           
 Value is equal to a dollar amount that is the lesser of $20.62 or the amount obtained by reducing the initial Norwood market value ($25.77) by the percentage change in the KBW NASDAQ Regional Bank Index less 20 percentage points.                     |

PB Bankshares may be required to pay to Norwood a termination fee of $2.4 million in certain circumstances described under “The Merger and the Merger Agreement — Termination Fee” beginning on page 120. Material United States Federal Income Tax Consequences of the Merger (page 99) Norwood and PB Bankshares will not be required to complete the merger unless