Company: NWFL
Filing Date: 2025-09-19
Form Type: S-4
Source: 0001193125-25-208580
Chunk: 190

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-09-19
Form: S-4
Chunk 190
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 preliminary significant valuations based on the fair value of the acquired assets and liabilities have been estimated and included in the unaudited condensed pro forma financial statements.

The final allocation of the purchase price will be determined after the merger is completed and after completion of thorough analyses to
determine the fair value of PB Bankshares’s tangible and identifiable intangible assets and liabilities as of the closing date. Increases or decreases in the estimated fair values of the net assets as compared with the information shown in the
unaudited pro forma combined condensed consolidated financial information may change the amount of the purchase price allocated to goodwill and other assets and liabilities and may impact Norwood’s consolidated statements of income due to
adjustments in yield and/or amortization of the adjusted assets or liabilities. Any changes to PB Bankshares’s stockholders’ equity, including results of operations from June 30, 2025, through the closing date will also change the
purchase price allocation, which may include the recording of a lower or higher amount of goodwill. The final adjustments may be materially different from the transaction accounting adjustments presented herein.

The pro forma statements of income and per share data information does not include anticipated cost savings or revenue enhancements. Norwood
and PB Bankshares are currently in the process of assessing the two companies’ personnel, benefits plans, premises, equipment, computer systems and service contracts to determine where the companies may take advantage of redundancies or where
it will be beneficial or necessary to convert to one system. Certain decisions arising from these assessments may involve canceling contracts between either PB Bankshares or Norwood and certain service providers. There is no assurance that the
anticipated cost savings will be realized on the anticipated time schedule or at all.

The pro forma combined basic and diluted earnings
per share of Norwood common stock is based on the pro forma combined net income per common share for PB Bankshares and Norwood divided by the pro forma basic or diluted common shares of the combined entities for the periods presented on such
statements of income. The pro forma information includes adjustments related to the fair value of assets and liabilities of PB Bankshares and is subject to adjustment as additional information becomes available and as final merger date analyses are
performed. The pro forma combined balance sheet and book value per share data includes the adjustment to reflect the accrual of one-time merger-related charges for Norwood and PB Bankshares: (a) Norwood pre-tax charges are estimated at $6.0 million ($4.8 million after-tax) and are included as a pro forma liability accr