Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 142

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 142
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 to Stephens upon the closing of the proposed merger. PB Bankshares has also agreed to indemnify Stephens against certain claims and liabilities that could arise out of Stephens’ engagement, including certain liabilities that could arise out of Stephens’ providing its fairness opinion. Stephens issues periodic research reports regarding the business and prospects of Norwood, and Stephens makes a market in the stock of Norwood. Stephens has not received fees for providing investment banking services to Norwood or PB Bankshares within the past two years. Stephens expects to pursue future investment banking services assignments with participants in the proposed merger. In the ordinary course of its business, Stephens Inc. and its affiliates and employees at any time may hold long or short positions, and may trade or otherwise effect transactions as principal or for the accounts of customers, in debt, equity or derivative securities of participants in the proposed merger. 94

Consideration to be Received in the Merger Norwood will pay cash for a number of shares equal to approximately 20% of the PB Bankshares common stock outstanding immediately prior to the effective time of the merger and will issue shares of Norwood common stock for the remaining 80% of such shares. Under the terms of the merger agreement, PB Bankshares shareholders will be given the opportunity to elect to receive for each outstanding share of PB Bankshares common stock they own:

| • |     | $19.75 in cash, without interest, which we refer to as “cash consideration”; |

| • |     | 0.7850 of a share of Norwood common stock, which we refer to as “stock consideration”; or |

| • |     | with respect to certain PB Bankshares shares owned by such shareholder, the cash consideration, and with respect 
 to all other PB Bankshares shares so owned, the stock consideration,                                             |

in each case, subject to the adjustment, election and allocation procedures specified in the merger agreement. No fractional shares of Norwood common stock will be issued in connection with the merger. Instead, Norwood will make a cash payment to each PB Bankshares shareholder who would otherwise receive a fractional share. The per share cash consideration of $19.75 is fixed. The 0.7850 exchange ratio for the stock consideration is fixed, subject to certain customary anti-dilution adjustments and a potential adjustment at Norwood’s option in certain circumstances involving a decline in Norwood’s stock price as described under “— Terminating the Merger Agreement” beginning on page 120. The per share value of the stock consideration, based upon Nor