Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 121

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 121
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 the indication of interest, including a request by Presence that the
exclusivity period be limited to 60 days instead of 90 and that Norwood not seek another transaction, as either buyer or seller, during the exclusivity period. PB Bankshares also requested customary “double trigger” price protection be
added to the indication of interest. Norwood agreed to all of these changes and, following PB Bankshares’ board approval of the May 7 indication of interest on May 20, 2025, the parties executed the indication of interest on
May 20, 2025.

On June 12, 2025, the parties began due diligence. During due diligence, Mr. Donnelly and Mr. Amin and
the parties’ legal counsel discussed internal revenue 280G issues.

On June 19, Norwood’s legal counsel provided a first
draft of the proposed merger agreement to Barley Snyder as well as drafts of director and officer voting and non-compete agreements and the proposed bank merger agreement.

Between June 19, 2025 and July 3, 2025, Barley Snyder proceeded to negotiate the merger agreement, with input from the PB
Bankshares’ board of directors and senior management. In that process, the parties negotiated over: the timing of shareholder elections; addition of representations and warranties to be given by Norwood; qualification and clarification of
representations and warranties being provided by PB Bankshares; the standard to be applied to the PB Bankshares board in circumstances where PB Bankshares may have the right, in the exercise of its fiduciary duties, to pursue a superior transaction
if one were to materialize; the termination fee, which Presence asked to be reduced to 4%, but which Norwood ultimately did not accept; the circumstances under which the termination fee would be payable; and the time at which PB Bankshares’
price protection would be determined. PB Bankshares determined that the voting agreements and bank merger agreement were generally acceptable as presented, with immaterial changes.

At a board meeting on June 26, 2025 PB Bankshares’ board met to review the status of negotiations and discussions with Norwood and
the due diligence process.

June 26, 2025 Mr. Amin had a conference call with Mr. Donnelly to review open items, the status
of negotiations of the merger agreement and timelines for merger announcement.

On July 2, 2025 PB Bankshares’ board met to
review the outcome of PB Bankshares’