Company: NWFL
Filing Date: 2025-07-07
Form Type: 425
Source: 0001193125-25-156258
Chunk: 139

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-07-07
Form: 425
Chunk 139
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 very pleased to announce our merger with Presence Bank, a nearly 106-year-old institution which shares
the same values, culture, and commitment to high quality customer service found at Wayne Bank.” He continued, “Presence is a growing and respected institution located within the most demographically attractive markets in Pennsylvania.
Joining these institutions provides Wayne Bank with the opportunity to deepen Presence Bank’s relationships with its customers, given our broader product mix and larger balance sheet. We look forward to working with Janak and his team to
improve the financial lives of the businesses and individuals operating in Presence Bank’s communities.”

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“We are equally excited for this strategic partnership and the opportunity to gain market share in
Central and Southeastern Pennsylvania” commented Mr. Amin who will be joining Wayne Bank as Executive Vice President and Chief Operating Officer upon closing of the transaction. “We have admired the leadership of Jim and his team, the
similar culture and values we share, and the reputation of Wayne Bank as a premier Pennsylvania-based community bank. This combination will provide our customers and communities with greater access to additional products and services. This will
result in an enhanced customer experience for our commercial base and the opportunity to augment the retail portion of our business with their product set and consumer verticals.”

Under the terms of the merger agreement, 80% of Presence’s common shares will be converted into Norwood Financial common stock while the remaining 20%
will be exchanged for cash. Presence’s shareholders will have the option to elect to receive either 0.7850 shares of Norwood Financial common stock or $19.75 in cash for each common share of Presence they own. The election is subject to
proration to ensure that, in the aggregate, 80% of the transaction consideration will be paid in the form of Norwood Financial common stock. All options to purchase Presence’s common stock will be cashed out upon completion of the merger. Based
on the closing price $26.65 for Norwood Financial Common Stock on July 3, 2025, the transaction would have an aggregate value of approximately $54.9 million. The purchase price reflects a multiple of 106.6% of Presence’s
March 31, 2025, tangible book value and a 2.3% core deposit premium. Following completion of the transaction, Presence shareholders who elect to receive common stock share consideration will receive a quarterly cash dividend equal to
approximately $0.24 per Norwood Financial share of common stock based on Norwood Financial’s current quarterly dividend