Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 183

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 183
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 of the merger agreement and Norwood does not make an offer at least as favorable to PB Bankshares  
 within five calendar days after notice; 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 the 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.                           |

119

Termination Fee The merger agreement requires PB Bankshares to pay Norwood a fee of $2.4 million if the merger agreement is terminated in certain circumstances. Specifically, termination of the merger agreement in the following circumstances would require PB Bankshares to pay the termination fee:

| • |     | PB Bankshares terminates the merger agreement to accept a proposal which the PB Bankshares board of directors                                                                                                                                      
 reasonably determines, after consultation with its financial advisor and legal counsel, to be (i) more favorable to its shareholders from a financial point of view than the merger (taking into account any changes to the financial terms of the 
 merger agreement proposed by Norwood in response to such offer) and (ii) reasonably capable of being completed (referred to in the merger agreement as a “superior proposal”) with respect to a merger or consolidation or any similar             
 transaction (re