Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 140

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 140
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 the projected period. In this analysis, Stephens used (i) financial information and data provided by PB Bankshares and (ii) financial forecasts and projections provided by the executive management team of PB Bankshares. Stephens determined the projected amount of cash flow for PB Bankshares assuming (i) annual dividend payments for excess capital (if any) above a tangible common equity to tangible asset ratio of 9.0% from 2025 to 2029, and (ii) a range of standalone terminal values assuming price to last-twelve-months tangible book value per share multiples ranging from 0.90x to 1.15x. Stephens discounted the projected cash flows from (i) and (ii) above at PB Bankshares’s estimated cost of equity to calculate a net present value range for such projected cash flows. In selecting terminal price to tangible book value multiples for PB Bankshares, Stephens considered the range of price to tangible book value multiples of PB Bankshares and of the comparable public companies of PB Bankshares set forth in the section entitled “Relevant Public Companies Analysis – PB Bankshares” for the last ten years. Exercising its professional judgment, Stephens selected a range of 0.90x to 1.15x as the terminal price to tangible book value multiples for the discounted cash flow analysis. The following table summarizes the range of terminal values of PB Bankshares that Stephens calculated based upon PB Bankshares’s estimated end of 93

period tangible common equity (in millions of $) at December 31, 2029 and the range of terminal price to tangible book value multiples of 0.90x to 1.15x:

| 2029 Presence End of Period TCE |     | $ |  56.6 |     | $ |  56.6 |     | $ |  56.6 |     | $ |  56.6 |     | $ |  56.6 |
| x Terminal Multiple             |     |   | 0.90x |     |   | 0.95x |     |   | 1.05x |     |   | 1.10x |     |   | 1.15x |
| Terminal Value                  |     | $ |  51.0 |     | $ |  53.8 |     | $ |  59.5 |     | $ |  62.3 |     | $ |  65.1 |

Stephens