Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 117

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 117
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 creating additional shareholder value, including, but not limited to, growth through the expansion
of its customer base in existing markets, growth through acquisitions of banks or business lines in existing or other markets and growth through sale to another financial institution with similar cultural values to PB Bankshares’ employees,
customers and community.

Janak M. Amin, the President and Chief Executive Officer of PB Bankshares and Presence Bank, has had, from time
to time, informal discussions with representatives of other financial institutions exploring topics of

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mutual interest to the banking industry. Many of those representatives are long-time colleagues of Mr. Amin, acquired over the course of his long career in banking. Some of those meetings
did, at times, include informal discussions about bank mergers and acquisitions in general as well as touching on possibilities of each representative’s organization.

Stephens, PB Bankshares financial advisor, has made presentations to the board on several occasions since 2023, including a presentation in
June 2024, which provided a strategic assessment of PB Bankshares. At that meeting, Stephens discussed with the board, among other things, the difficulty PB Bankshares might face in growing organically and through acquisition, with PB
Bankshares’ ability to be an acquirer of identified potential candidates being negatively affected by its capital and lack of a premium valuation in its stock. Stephens and the board also discussed the potential that a sale transaction might
enhance product delivery to PB Bankshares’ current customer base, provider greater capital to continue the growth of the Presence Bank market and create a potential acceleration in earnings per share, stock price and trading liquidity.

In the third quarter of 2024, Mr. Amin met with a long-time colleague representing a financial institution that we will refer to as
Institution A. At that meeting, Mr. Amin and Institution A’s representative discussed the potential that a transaction between PB Bankshares and Institution A might be beneficial to both organizations. The parties proceeded to enter into
a non-disclosure agreement and in October, 2024, executed a letter of intent with a purchase price of approximately 1.1x tangible book value of PB Bankshares’ tangible book value at that point in time,
or $18.69 per share. However, after both parties had engaged in substantial due diligence, it became apparent that the parties were not aligned enough on social and governance issues, and the transaction with Institution A was terminated in November
2024.

Mr. Amin and James O. Donnelly,