Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 123

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 123
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 PB Bankshares’s directors and executive officers have interests in the merger that are different from, or in addition to, those of other PB Bankshares shareholders. The PB Bankshares board of directors was aware of and considered these interests, among other matters, in evaluating and negotiating the merger agreement, and in recommending that the merger proposal be approved by the shareholders of PB Bankshares. See “The Merger – Interests of PB Bankshares’s Directors and Executive Officers” This summary of the reasoning of PB Bankshares’s board of directors and other information presented in this section is forward-looking in nature and, therefore, should be read in light of the factors discussed under the heading “Cautionary Statement Regarding Forward-Looking Statements”. Norwood’s Reasons for the Merger In reaching its determination to approve the merger agreement, the board of directors of Norwood considered a number of factors, including:

| • |     | the complementary geographical locations of Presence Bank’s branch network, which will augment 
 Norwood’s operations;                                                                          |

| • |     | the board’s understanding of, and the presentations of Norwood’s management and financial advisor,                     
 regarding PB Bankshares’ business, operations, management, financial condition, asset quality, earnings and prospects; |

| • |     | the board’s view that the merger is consistent with Norwood’s expansion strategy and will allow for 
 enhanced opportunities for Norwood’s new and existing clients and customers;                        |

| • |     | the results of management’s due diligence investigation of PB Bankshares and the reputation, business                                                                                                          
 practices and experience of PB Bankshares and its management, including their impression that PB Bankshares is a financially healthy, well-run bank holding company that is deeply committed to its customers, 
 employees, and the communities that it serves;                                                                                                                                                                 |

| • |     | the fact that the merger is expected to be accretive to earnings per share of Norwood in the first full year of 
 operations;                                                                                                     |

| • |     | the anticipated operating efficiencies and cost savings of the combined company following the completion of the 
 merger, and the likelihood that they would be achieved after the merger;                                        |

| • |     | the fact that the merger consideration consists of a mixture of cash and stock in which PB Bankshares’ 
 shareholders would have an election, subject to limitations;                                           |

| • |     | the fact that the per share stock consideration is fixed; |

| • |     | the deal protection provided by the termination fee of $2.