Company: NWFL
Filing Date: 2025-09-19
Form Type: S-4
Source: 0001193125-25-208580
Chunk: 194

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-09-19
Form: S-4
Chunk 194
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 the transaction before such person otherwise would have become an interested stockholder.                                                                                                                                                      |     |                                                                                                                                                                                                                                                   |

138

| PB Bankshares, Inc.                                                                                                                                                                                                                          |     | Norwood Financial Corp |
| Under Subtitle 8 of Title 3 of the Maryland General Corporation Law, a public corporation with a class of equity securities registered under the Securities Exchange Act of 1934 and at least three (3) independent directors can            
 elect to be subject to certain takeover defense provisions. A corporation’s charter may contain a provision or the board of directors may adopt a resolution that prohibits the corporation from electing to be subject to any or all of the 
 provisions of Subtitle 8. PB Bankshares did not opt into Subtitle 8’s provisions.                                                                                                                                                            |     |                        |

139

DESCRIPTION OF NORWOOD CAPITAL STOCK

Norwood is authorized to issue 20,000,000 shares of common stock, par value $0.10 per share, and 5,000,000 shares of preferred stock no par
value. As of August 1, 2025, there were 9,261,575 shares of Norwood common stock issued and outstanding. Norwood has no outstanding shares of preferred stock. Each share of Norwood common stock has the same relative rights as, and is identical
in all respects with, each other share of common stock.

The common stock of Norwood represents nonwithdrawable capital, is not an account
of an insurable type, and is not insured by the FDIC or any other government agency.

Common Stock

Dividends.Norwood may pay dividends out of statutory surplus or from net earnings if, as and when declared by its board of
directors. The payment of dividends by Norwood is subject to limitations that are imposed by law and applicable regulation. The holders of common stock of Norwood will be entitled to receive and share equally in dividends as may be declared by the
board of directors of Norwood out of funds legally available therefor. If Norwood issues shares of preferred stock, the holders thereof may have a priority over the holders of the common stock with respect to dividends.

Voting Rights.The holders of common stock of Norwood have exclusive voting rights in Norwood. They elect Norwood’s board
of directors and act on other matters as are required to be presented to them under Pennsylvania law, or as are otherwise presented to them by the board of directors. Generally, each holder of common stock is entitled to one vote per share and