Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 121

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 121
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2025, the PB Bankshares board of directors unanimously determined that the
merger agreement and the merger are in the best interests of PB Bankshares, its shareholders, employees, community, customers and other constituents and approved the merger agreement. In reaching its decision to approve the merger agreement and the
merger and to recommend that PB Bankshares’s shareholders vote “FOR” the merger agreement and the merger, the PB Bankshares board of directors evaluated the merger agreement and the merger in consultation with PB Bankshares
management, as well as PB

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Bankshares’s financial and legal advisors, and considered a number of factors, including the following material factors, which are not presented in any order of priority:

| • |     | its knowledge of PB Bankshares’s business, operations, regulatory and financial condition, asset quality,                              
 earnings, loan portfolio, capital and prospects both as an independent organization, and as a part of a combined company with Norwood; |

| • |     | its understanding of Norwood’s business, operations, regulatory and financial condition, asset quality,                                  
 earnings, capital and prospects, taking into account discussions with senior management regarding their due diligence review of Norwood; |

| • |     | the PB Bankshares board’s understanding of the current and prospective environment in which PB Bankshares                                                                                                                                     
 and Norwood operate, including national and local economic conditions, the interest rate environment, increasing operating costs resulting from regulatory initiatives and compliance mandates, and the competitive effects of the continuing 
 consolidation in the banking industry;                                                                                                                                                                                                        |

| • |     | the board’s review with its legal and financial advisors of the structure of the merger, the financial and                                          
 other terms of the merger and related documents, including the board’s assessment of the adequacy of the exchange ratio provided for in the merger; |

| • |     | the PB Bankshares board’s understanding that the merger will qualify as a “reorganization”                                                                                                                                          
 under Section 368(a) of the Internal Revenue Code, providing favorable tax consequences to PB Bankshares’s shareholders with respect to the Norwood stock consideration to be received by PB Bankshares shareholders in the merger; |

| • |     | the PB Bankshares board’s review with its legal advisor, Barley Snyder, of the material terms of the merger                                                                                                                                            
 agreement, including the board’s ability, under certain circumstances, to withhold, withdraw, qualify or modify its recommendation to PB Bankshares’s shareholders and to consider and pursue a better unsolicited acquisition proposal,               
 subject to the potential