Company: NWFL
Filing Date: 2025-09-19
Form Type: S-4
Source: 0001193125-25-208580
Chunk: 147

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-09-19
Form: S-4
Chunk 147
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 per share of Norwood common stock) was allocated approximately 20% in cash and 80% in Norwood common stock. The number of shares of PB Bankshares common stock to be converted into cash must equal 20% of the outstanding shares of PB Bankshares common stock. Approximatelyshares of PB Bankshares common stock will be exchanged for the cash consideration. We call this number the cash consideration pool. The allocation procedures in the merger agreement are intended to provide for an approximate 80% stock and 20% cash allocation among all outstanding PB Bankshares shares. Norwood common stock will be issued to PB Bankshares shareholders who make cash elections, on a pro rata basis, if more shareholders elect to receive cash than is available in the cash consideration pool, so that the aggregate number of shares of PB Bankshares common stock that will be exchanged for cash consideration in the merger does not exceed 20% of the outstanding shares of PB Bankshares common stock. Likewise, cash will be paid to PB Bankshares shareholders who make stock elections, on a pro rata basis, if fewer shareholders elect to receive cash than is available the cash consideration pool, so that the aggregate number of shares of PB Bankshares common stock that will be exchanged for cash consideration in the merger equals 80% of the outstanding shares of PB Bankshares common stock. See “— Allocation Procedures” below. The allocation of the mix of consideration payable to PB Bankshares shareholders in the merger will not be known until Norwood tallies the results of the cash/stock elections made by PB Bankshares shareholders, which will not occur until near or after the closing of the merger. No guarantee can be made that PB Bankshares shareholders will receive the amounts of cash or stock they elect. As a result of the allocation procedures and other limitations contained in the merger agreement, as described in this proxy statement/prospectus, PB Bankshares shareholders may receive Norwood common stock or cash in amounts that vary from the amounts they elect to receive. 95

PB Bankshares is not making any recommendation as to whether PB Bankshares shareholders should elect to receive cash or Norwood common stock. Each PB Bankshares shareholder must make his or her own decision with respect to such election.

Election Procedures; Surrender of Stock Certificates

Each PB Bankshares shareholder should complete and return an election form, along with such shareholder’s PB Bankshares stock
certificate(s), according to the instructions included with the form. The election form and related materials associated with making the election will be mailed concurrently,