Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 125

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 125
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 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 $2.4 million payable under certain circumstances in 
 the event of the termination of the merger agreement due to a competing offer or certain other reasons;    |

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| • |     | the intended tax treatment of the merger as a tax-free reorganization; 
 and                                                                    |

| • |     | the likelihood of receiving all of the regulatory approvals required for the merger. |

This foregoing discussion of the factors considered by Norwood’s board of directors does not list every factor considered by the board but includes all material factors considered by the board. Based on the factors described above, Norwood’s board of directors determined that the merger with PB Bankshares and Presence Bank would be advisable and in the best interests of Norwood and its shareholders, and unanimously approved the merger agreement and the transactions contemplated by the merger agreement. In reaching its determination to approve the merger agreement, the board did not give relative or specific importance to each of the factors listed above, and individual directors may have given differing importance to different factors. Please note that this explanation of the board’s reasoning and all 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”. Opinion of PB Bankshares’s Financial Advisor On June 9, 2025, PB Bankshares engaged Stephens to act as financial adviser to PB Bankshares in connection with the proposed sale of PB Bankshares to Norwood. As part of its engagement, Stephens was