Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 119

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 119
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ice Chair),
Alexandra Nolan and Jeffery Gifford (Norwood Financial Executive Committee of the board) met with Janak M. Amin, Joseph Carroll (Chairman of PB Bankshares and Presence Bank board), Spencer Andress (Vice Chairman) and Larry Constable (executive
committee members of PB Bankshares) met in Stroudsburg, Pennsylvania to discuss each organizations’ business objectives, culture, values, employee considerations and the merits of a merger.

At a PB Bankshares board meeting on March 26, 2025, Stephens presented a group of similar organizations that could be potential merger
partners that would have the capacity to pay a premium for shares of PB Bankshares common stock. The board of directors of PB Bankshares then considered the prospects of Presence Bank’s organic growth, noting the CRE concentration limits and
the need to raise capital to continue its balance sheet growth. Barley Snyder, PB Bankshares’ legal counsel, reviewed with the board of directors the fiduciary duties of directors under Maryland law, including the fiduciary duty of directors
in the context of a change in control. Following thorough discussion and deliberation, and after all questions posed by the directors had been answered by management, Stephens and Barley Snyder, the PB Bankshares board unanimously agreed that it was
in the best interest of PB Bankshares’ shareholders and other constituents for PB Bankshares to explore a potential business combination with Norwood. The board of directors of PB Bankshares directed Mr. Amin to negotiate an indication of
interest with Norwood.

Norwood provided a nonbinding indication of its interest in acquiring PB Bankshares to Mr. Amin on
April 1, 2025. That indication of interest proposed a merger of PB Bankshares with Norwood, with Norwood surviving, followed by the merger of Wayne Bank and Presence Bank, with Wayne Bank surviving. The April 1 indication of interest
proposed that, in the merger, each share of PB Bankshares be exchanged for either (i) Norwood common stock, at a fixed exchange ratio of .7797 shares of Norwood common stock for each share of PB Bankshares common stock or (ii) $19.50 cash
(subject to the requirement that 80% of PB Bankshares’ shares would be converted into Norwood stock) and that stock options would be cashed out based on the cash consideration to be paid in the merger. The April 1 indication of interest
also proposed a termination fee of 4.5