Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 188

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 188
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 $         | (0.39 | ) |     | $               | (0.31 | ) |
| Book Value per common share as of December 31, 2024 |     | $                 | 23.02 |   |     | $              | 19.07 |     | $         | 22.47 |   |     | $               | 17.64 |   |

NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS TRANSACTION ACCOUNTING ADJUSTMENTS:

| (1) | Under the terms of the merger agreement, 80% of PB Bankshares’ common shares will be converted into                                                                                                                                                       
 Norwood common stock while the remaining 20% will be exchanged for cash. PB Bankshares’ stockholders will have the option to elect to receive either 0.7850 shares of Norwood common stock or $19.75 in cash for each common share of PB Bankshares       
 they own. The election is subject to proration to ensure that, in the aggregate, 80% of the transaction consideration will be paid in the form of Norwood common stock. In this pro forma analysis and assuming a Norwood common stock price of $25.03 as 
 of August 15, 2025 (which was the latest practical trading date before the date of this document) the PB Bankshares merger consideration per common share was assumed to equal $19.65.                                                                    |

In this pro forma analysis, per the Merger Agreement, the final PB Bankshares common shares to be settled will be adjusted to exclude the number of shares to repay the Presence Bank ESOP loan. In accordance with the Merger Agreement, the Presence Bank ESOP shall be terminated immediately prior to the closing date of the transaction (the “ESOP Termination Date”). On the ESOP Termination Date, all existing ESOP participants’ accounts shall become fully vested and 100% non-forfeitable.Presence Bank shall direct the ESOP trustee to remit a sufficient number of the shares of PB Bankshares Common Stock allocated to the suspense account pursuant to the ESOP (the “Suspense Shares”) back to PB Bankshares to repay the outstanding ESOP loan which promissory note is held by PB Bankshares in full, with each remitted share to 126

be valued equal to the closing price of PB Bankshares Common Stock on the day immediately prior to the ESOP Termination Date. In this pro forma analysis it was assumed that the PB Bankshares