Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 143

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 143
---
wood’s closing stock price on October 27, 2025, the most recent practicable trading day before this proxy statement/prospectus was finalized, was $21.17 per share. The market value of the stock consideration will fluctuate with the price of Norwood common stock. At the time of completion of the merger, the market value of the stock consideration could be greater or less than the value of the cash consideration due to fluctuations in the market price of Norwood common stock. Under the terms of the merger agreement, the aggregate consideration payable to PB Bankshares shareholders in the merger as of July 3, 2025 (based on an assumed price of $25.77 per share of Norwood common stock) was allocated approximately 20% in cash and 80% in Norwood common stock. The number of shares of PB Bankshares common stock to be converted into cash must equal 20% of the outstanding shares of PB Bankshares common stock. Approximately 510,463 shares of PB Bankshares common stock will be exchanged for the cash consideration. We call this number the cash consideration pool. The allocation procedures in the merger agreement are intended to provide for an approximate 80% stock and 20% cash allocation among all outstanding PB Bankshares shares. Norwood common stock will be issued to PB Bankshares shareholders who make cash elections, on a pro rata basis, if more shareholders elect to receive cash than is available in the cash consideration pool, so that the aggregate number of shares of PB Bankshares common stock that will be exchanged for cash consideration in the merger does not exceed 20% of the outstanding shares of PB Bankshares common stock. Likewise, cash will be paid to PB Bankshares shareholders who make stock elections, on a pro rata basis, if fewer shareholders elect to receive cash than is available the cash consideration pool, so that the aggregate number of shares of PB Bankshares common stock that will be exchanged for cash consideration in the merger equals 80% of the outstanding shares of PB Bankshares common stock. See “— Allocation Procedures” below. The allocation of the mix of consideration payable to PB Bankshares shareholders in the merger will not be known until Norwood tallies the results of the cash/stock elections made by PB Bankshares shareholders, which will not occur until near or after the closing of the merger. No guarantee can be made that PB Bankshares shareholders will receive the amounts of cash or stock they elect. As a result of the allocation procedures and other limitations contained in the merger agreement,