Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 127

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 127
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 the date of the opinion. The opinion does not address the underlying business decision of PB Bankshares to engage in the proposed merger or any other term or aspect of the merger agreement or the transactions contemplated thereby. Stephens’ opinion does not constitute a recommendation to PB Bankshares’s board of directors or any of PB Bankshares’s shareholders as to how such person should vote or otherwise act with respect to the proposed merger or any other matter. PB Bankshares and Norwood determined the merger consideration through a negotiation process. 82

In connection with developing its opinion, Stephens:

| (i) | reviewed certain publicly available financial statements and reports regarding PB Bankshares and Norwood; |

| (ii) | reviewed certain audited financial statements regarding PB Bankshares and Norwood; |

| (iii) | reviewed certain internal financial statements, management reports and other financial and operating data             
 concerning PB Bankshares and Norwood prepared by management of PB Bankshares and management of Norwood, respectively; |

| (iv) | reviewed, on a pro forma basis, in reliance upon financial projections and other information and assumptions                                                                                                                                            
 concerning PB Bankshares and Norwood provided by management of PB Bankshares and management of Norwood, as applicable, and upon consensus research estimates concerning Norwood, the effect of the proposed merger on the balance sheet, capitalization 
 ratios, earnings and tangible book value, both in the aggregate and, where applicable, on a per share basis of Norwood;                                                                                                                                 |

| (v) | reviewed the reported prices and trading activity for the common stock of PB Bankshares and Norwood; |

| (vi) | compared the financial performance of PB Bankshares and Norwood with that of certain other publicly-traded 
 companies and their securities that Stephens deemed relevant to Stephens’ analysis of the proposed merger; |

| (vii) | reviewed the financial terms, to the extent publicly available, of certain merger or acquisition transactions 
 that Stephens deemed relevant to Stephens’ analysis of the proposed merger;                                   |

| (viii) | reviewed the then most recent draft of the merger agreement and related documents provided to Stephens by PB 
 Bankshares;                                                                                                  |

| (ix) | discussed with management of PB Bankshares and management of Norwood the operations of and future business                                                          
 prospects for PB Bankshares and Norwood, respectively and the anticipated financial consequences of the proposed merger to PB Bankshares and Norwood, respectively; |

| (x) | assisted in PB Bankshares’s deliberations regarding the material terms of the proposed merger and