Company: NWFL
Filing Date: 2025-09-19
Form Type: S-4
Source: 0001193125-25-208580
Chunk: 18

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-09-19
Form: S-4
Chunk 18
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| • |     | $19.75 in cash, without interest, which we refer to as the “cash consideration;” or |

| • |     | 0.7850 of a share of Norwood common stock, which we refer to as the “stock consideration.” |

PB Bankshares shareholders may elect to receive the cash consideration for some or all of their shares of PB Bankshares’ common stock or the stock consideration for some or all of their shares of PB Bankshares’ common stock or make no election at all. Elections will be subject to the adjustment, election and allocation procedures specified in the merger agreement. All shareholder elections will be subject to the allocation and proration procedures set forth in the merger agreement which are intended to ensure that 80% of the shares of PB Bankshares will be exchanged for Norwood common stock and 20% of the shares of PB Bankshares will be exchanged for cash. The allocation procedures in the merger agreement provide that the aggregate number of shares of PB Bankshares common stock to be converted into the right to receive cash consideration will equal 20% of the outstanding shares of PB Bankshares common stock, and the number of shares to be converted into Norwood common stock will equal 80% of the outstanding PB Bankshares common stock. Pursuant to this limitation, if the aggregate number of shares with respect to which a valid cash consideration election is made is greater than 20% of the outstanding shares of PB Bankshares common stock, a pro rata portion of those shares will be converted into the right to receive Norwood common stock such that the number of shares of PB Bankshares common stock converted into the cash consideration equals 20% of the total. Similarly, if the number of shares pursuant to which a valid cash consideration election is made is less than 20% of the outstanding shares of PB Bankshares common stock, first such number of shares for which no election has been made and then, if necessary, such number of shares for which a stock consideration election has been made will be converted, as necessary, into stock consideration such that the number of shares of PB Bankshares common stock to be converted into cash in the transaction does not exceed 20% of the total number of shares.

8

Election Procedures for PB Bankshares Shareholders; Surrender of PB Bankshares Stock Certificates (page 87) Each PB Bankshares shareholder should complete and return an election form, along with the PB Bankshares stock certificate(s), according to the instructions included with the form. The election