Company: NWFL
Filing Date: 2025-07-07
Form Type: 8-K
Source: 0001193125-25-156255
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Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-07-07
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Definitive Material Agreement.  

On July 7, 2025, Norwood Financial Corp (“ Norwood Financial”) and its wholly owned subsidiary, Wayne Bank, and PB Bankshares, Inc. (“ PB Bankshares”), and its wholly owned subsidiary, Presence Bank, entered into an Agreement and Plan of Merger (the “ Merger Agreement”), pursuant to which PB Bankshares will merge with and into Norwood Financial, with Norwood Financial as the surviving corporation (the “ Merger”). Concurrent with the merger, it is expected that Presence Bank will merge with and into Wayne Bank.

Under the terms of the Merger Agreement, each outstanding share of PB Bankshares common stock will be converted into either the right to receive $19.75 in cash or 0.7850 shares of Norwood Financial common stock. The elections as to the consideration to be received by PB Bankshares stockholders, will be subject to the requirement that 80% of the merger consideration will be paid in shares of Norwood Financial common stock, and that the remainder will be paid in cash.

The Merger Agreement has been approved by the boards of directors of each of Norwood Financial and PB Bankshares. Subject to receiving the requisite approval of the Merger Agreement by PB Bankshares’ shareholders, the receipt of the requisite regulatory approvals, and the fulfillment of other customary closing conditions, the parties anticipate that the Merger will close either late in the fourth quarter of 2025 or early first quarter of 2026.

The Merger Agreement contains customary representations and warranties from each of Norwood Financial and PB Bankshares with respect to its and its subsidiaries’ businesses. In addition, the Merger Agreement includes customary covenants, including, among others, (i) covenants by each party relating to the conduct of its business during the interim period between the execution of the Merger Agreement and the effective time of the Merger, (ii) covenants by PB Bankshares relating to PB Bankshares obligation to call a meeting of its shareholders to approve the Merger Agreement, (iii) a covenant by PB Bankshares, subject to certain exceptions, to recommend that its shareholders approve the Merger Agreement and (iv) covenants by PB Bankshares not to, subject to certain exceptions, (a) initiate, solicit, induce or encourage or take any action to facilitate (including by providing non-public information) any inquiries or proposals with respect to any acquisition proposals or (b) engage in discussions