Company: NWFL
Filing Date: 2025-07-07
Form Type: 425
Source: 0001193125-25-156258
Chunk: 7

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-07-07
Form: 425
Chunk 7
---
 |     | James O. Donnelly President and Chief              
 Executive Officer (Duly Authorized Representative) |

EXHIBIT 2.1

AGREEMENT AND PLAN OF MERGER

BY AND AMONG

NORWOOD FINANCIAL CORP,

WAYNE BANK,

PB BANKSHARES, INC.

AND

PRESENCE BANK

Dated as of July 7, 2025

TABLE OF CONTENTS

| Article 1 - THE MERGER                                                     |     |                                                            |     |  2 |
| Section 1.1                                                                |     | Consummation of Merger; Closing Date                       |     |  2 |
| Section 1.2                                                                |     | Effect of Merger                                           |     |  3 |
| Section 1.3                                                                |     | Further Assurances                                         |     |  3 |
| Section 1.4                                                                |     | Directors and Officers                                     |     |  4 |
| Section 1.5                                                                |     | Tax Consequences                                           |     |  4 |
| Section 1.6                                                                |     | Bank Merger                                                |     |  4 |
| Article 2 - CONVERSION OF CONSTITUENTS’ CAPITAL SHARES                     |     |                                                            |     |  4 |
| Section 2.1                                                                |     | Manner of Conversion of Bankshares Common Stock            |     |  4 |
| Section 2.2                                                                |     | Election Procedures                                        |     |  5 |
| Section 2.3                                                                |     | Effectuating Conversion                                    |     |  8 |
| Section 2.4                                                                |     | Determination of Alternative Structures                    |     | 10 |
| Section 2.5                                                                |     | Laws of Escheat                                            |     | 11 |
| Section 2.6                                                                |     | Anti-Dilution                                              |     | 11 |
| Section 2.7                                                                |     | Absence of Control                                         |     | 11 |
| Section 2.8                                                                |     | Treatment of Stock Options                                 |     | 11 |
| Section 2.9                                                                |     | Treatment of Restricted Stock                              |     | 12 |
| Section 2.10                                                               |     | Additional Actions                                         |     | 12 |
| Section 2.11                                                               |     | Exemption from Liability Under Section 16(b)               |     | 12 |
| Article