Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 116

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 116
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us carefully and in its entirety, including the annexes, for more detailed information concerning the merger agreement and the merger. A copy of the merger agreement is attached to this proxy statement/prospectus as
Annex A.

The PB Bankshares board of directors unanimously recommends that PB Bankshares shareholders vote “FOR” the approval of the merger agreement.

THE MERGER AND THE MERGER AGREEMENT

The following discussion contains certain information about the merger. The discussion is subject, and qualified in its entirety by reference,
to the merger agreement attached as Annex A to this proxy statement/prospectus and incorporated herein by reference. We urge you to read carefully and fully this entire proxy statement/prospectus, including the merger agreement attached as Annex A,
for a more complete understanding of the merger.

General

The merger agreement provides for the merger of PB Bankshares with and into Norwood, with Norwood as the surviving entity. Immediately
following the merger, Presence Bank will merge with and into Wayne Bank, with Wayne Bank as the surviving entity.

Background of the Merger

Presence Bank a community-oriented bank offering a variety of financial products and services to meet the needs of its
customers. As part of its ongoing consideration of the long-term prospects and strategies of PB Bankshares and Presence Bank, their boards have regularly considered various strategic alternatives, including opportunities for organic growth and
potential acquisitions and merger transactions. They have considered strategic options potentially available to PB Bankshares and Presence Bank, with the goal of enhancing and focusing on value for their shareholders, as well as Presence
Bank’s interest in serving its customers and community, and providing for its employees.

The PB Bankshares board believes that PB
Bankshares needs to continue to grow to reach the scale necessary to operate efficiently and absorb increased costs of operating PB Bankshares in order to become more profitable. Like many community banks, Presence Bank has incurred increasing costs
in complying with new banking laws, regulations and policies, in addition to changes in technology that affect the way customers conduct banking business, as well as the difficulty of operating in a sustained low interest rate environment. A future
economic downturn would make PB Bankshares’s continued growth more difficult to achieve.

The PB Bankshares board of directors has
regularly reviewed and discussed Presence Bank’s strategy, performance and prospects in the context of the national and local economic environment, developments in the regulation of financial institutions and the competitive landscape. During
the course of developing its strategic plan, the PB Bankshares board of directors and senior management team regularly consider various strategies for