Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 189

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 189
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 ESOP Loan had a balance of $2,414,000 and will be paid off with the of retirement of 122,858 PB Bankshares ($2.4 million divided by the PB Bankshares assumed merger consideration per common share of $19.65). In this pro forma analysis per the Merger Agreement, each option to acquire shares of PB Bankshares Common Stock that is outstanding and unexercised shall automatically become vested and shall be converted into the right to receive from Norwood a cash payment in an amount, less required withholding taxes, equal to the product of (i) the number of shares of PB Bankshares Common Stock subject to the PB Bankshares Stock Option, multiplied by (ii) the amount by which the Cash Consideration (the “Option Payment Amount”) exceeds the exercise price of such PB Bankshares Stock Option. If the exercise price of a PB Bankshares Stock Option is greater than the Option Payment Amount, then at the Effective Time of the Merger, such PB Bankshares Stock Option shall be cancelled without any payment made in exchange. The total estimated purchase price for the purpose of this pro forma financial information is $49.9 million. The adjustment for shares outstanding, basic, and diluted weighted average common shares outstanding is an amount to adjust the shares to equal the new common shares issued for the transaction. The following is a summary of the fair value of assets acquired and liabilities assumed resulting in goodwill. Goodwill is created when the purchase price consideration exceeds the fair value of the net assets acquired or a bargain purchase gain results when the current fair value of the net assets acquired exceeds the purchase price consideration. For purposes of this analysis as of June 30, 2025, goodwill of $4.8 million results from the transaction; however, the final purchase accounting analysis will be performed as of the merger date and amounts therein are subject to change based on operations subsequent to June 30, 2025, as additional information becomes available and as additional analyses are performed.

| (dollars in thousands, except per share data)                                                                                                                                
 Purchase Price Consideration for Common Stock                                                                                                                                
 PB Bankshares, Inc. common shares outstanding as of June 30, 2025 (includes vested and                                                                                       
 unvested restricted stock awards)                                                                                                                                            
 Less: ESOP Suspense Shares                                                                                                                                                   |     |   | 2,552,315 |
|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----|:--|----------:|
| ESOP loan balance as of June 30, 2025                                                                                                                                        |