Company: NWFL
Filing Date: 2025-09-19
Form Type: S-4
Source: 0001193125-25-208580
Chunk: 128

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-09-19
Form: S-4
Chunk 128
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| • |     | 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; 
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| • |     | 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 asked to undertake a study of the fairness, from a financial point of view, of the proposed merger of PB Bankshares with and into Norwood and the merger of PB Bankshares’ bank subsidiary with Norwood’s bank subsidiary, with Norwood’s bank subsidiary surviving. PB Bankshares engaged Stephens because, among other factors, Stephens is a nationally recognized investment banking firm with substantial experience in similar transactions. As part of its investment banking business, Stephens is continually engaged in the valuation of financial services businesses and their securities in connection with mergers and acquisitions. As part of Stephens’ engagement, representatives of Stephens participated in a meeting of PB Bankshares’s board of directors held