Company: NWFL
Filing Date: 2025-09-19
Form Type: S-4
Source: 0001193125-25-208580
Chunk: 144

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-09-19
Form: S-4
Chunk 144
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 cash flows from (i) and (ii) above at PB Bankshares’s estimated cost of equity to calculate a net present value range for such projected cash flows. In selecting terminal price to tangible book value multiples for PB Bankshares, Stephens considered the range of price to tangible book value multiples of PB Bankshares and of the comparable public companies of PB Bankshares set forth in the section entitled “Relevant Public Companies Analysis – PB Bankshares” for the last ten years. Exercising its professional judgment, Stephens selected a range of 0.90x to 1.15x as the terminal price to tangible book value multiples for the discounted cash flow analysis. The following table summarizes the range of terminal values of PB Bankshares that Stephens calculated based upon PB Bankshares’s estimated end of 93

period tangible common equity (in millions of $) at December 31, 2029 and the range of terminal price to tangible book value multiples of 0.90x to 1.15x:

| 2029 Presence End of Period TCE |     | $ |  56.6 |     | $ |  56.6 |     | $ |  56.6 |     | $ |  56.6 |     | $ |  56.6 |
| x Terminal Multiple             |     |   | 0.90x |     |   | 0.95x |     |   | 1.05x |     |   | 1.10x |     |   | 1.15x |
| Terminal Value                  |     | $ |  51.0 |     | $ |  53.8 |     | $ |  59.5 |     | $ |  62.3 |     | $ |  65.1 |

Stephens considered discount rates from 14.0% to 16.0% for PB Bankshares. Based on this analysis, Stephens derived a range for the implied equity value of PB Bankshares from $12.44 per share to $16.29 per share. The discounted cash flow analysis is a widely used valuation methodology, but the results of this methodology are highly dependent on the assumptions that must be made, including asset and earnings growth rates, terminal values, capital levels, and discount rates. The analysis did not purport to be indicative of the actual values or expected values of PB Bankshares. The actual results may vary from the projected results, any of these