Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 116

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 116
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 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, President and Chief Executive Officer of Norwood, had become acquainted as a result of their
common service on the Philadelphia Federal Reserve Board Committee and through various Pennsylvania Bankers Association meeting events and had gotten to know one another better through various social engagements.

In January 2025, Stephens prepared a presentation for the PB Bankshares board that provided an overview of the current banking landscape and
potential transaction partners for PB Bankshares, both as a potential acquirer and as a potential target. At that meeting, Norwood was identified as an institution that, if PB Bankshares were to sell, would likely be able to pay a premium purchase
price consistent with the premium PB Bankshares board felt was necessary. As a result, in late February, 2025, Mr. Amin arranged a meeting with Mr. Donnelly. At the meeting, the two executives discussed the potential of Norwood acquiring
PB Bankshares. During the conversation, the gentlemen discussed, in depth, their institutions’ cultural values, business models and strategies, as well