Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 32

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 32
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 parties and the
performance by both parties of their covenants and agreements, and the receipt by both parties of legal opinions from their respective tax counsel. Furthermore, there shall not have occurred any Material Adverse Effect (as defined in the merger
agreement) with respect to PB Bankshares, or Norwood. Therefore, the conditions to closing of the merger may not be fulfilled and the merger may not be completed.

In addition, certain circumstances may occur under which PB Bankshares may choose to terminate the merger agreement. These circumstances
include a situation in which if Norwood’s average share price during the specified determination period declines to below $20.62 (subject to customary anti-dilution adjustments) and such decline is at least 20% greater than the corresponding
decline (if any) in the value of the KBW NASDAQ Regional Bank over the same time period, provided that Norwood may increase the merger consideration to cause such tests not to be met in order to avoid termination of the merger agreement by PB
Bankshares. See “The Merger and the Merger Agreement—Terminating the Merger Agreement” beginning on page 108 for a more complete discussion of the circumstances under which the merger agreement could be terminated.

18

Termination of the Merger Agreement Could Negatively Impact PB Bankshares. If the merger agreement is terminated, there may be various consequences, including:

| • |     | PB Bankshares’s businesses may have been adversely impacted by the failure to pursue other beneficial                                                                                                                        
 opportunities due to the focus of management on the merger, and PB Bankshares would have incurred costs in pursuing the merger, in each case without realizing any of the anticipated benefits of completing the merger; and |

| • |     | the market price of PB Bankshares common stock might decline to the extent that the current market price reflects 
 a market assumption that the merger will be completed.                                                            |

If the merger agreement is terminated and PB Bankshares’s board of directors seeks another merger or business combination, PB Bankshares shareholders cannot be certain that PB Bankshares will be able to find a party willing to offer equivalent or more attractive consideration than the consideration Norwood has agreed to provide in the merger. If the merger agreement is terminated under certain circumstances involving PB Bankshares pursing an alternate transaction, PB Bankshares may be required to pay a termination fee of $2.4 million to Norwood. See “The Merger and the Merger Agreement-Termination Fee” beginning on page 120. Each of PB Bank