Norwood Financial Corp. closed its acquisition of PB Bankshares, Inc. and its wholly‑owned subsidiary Presence Bank on January 5 2026, adding roughly $456 million in assets, $355 million in deposits and $51 million in equity to its balance sheet. The combined institution now holds about $2.9 billion in assets and operates 33 branch locations across Pennsylvania and New York, a 33‑branch network that extends Norwood’s reach into central and southeastern Pennsylvania.
The deal was structured as a stock‑for‑cash exchange. PB Bankshares shareholders could elect either $19.75 in cash or 0.7850 shares of Norwood common stock per share of PB Bankshares. Approximately 87 % of shareholders chose the stock consideration, 1 % opted for cash, and the remaining 12 % either declined to elect or submitted no preference. The transaction closed at a fair valuation that aligns with Norwood’s strategic growth plan.
Strategically, the acquisition positions Norwood to capture higher‑growth markets in central and southeastern Pennsylvania, adding new customer segments and a broader deposit franchise. Management projects the combined entity to deliver about 10 % EPS accretion in 2026, driven by cost synergies, expanded lending capacity, and a diversified deposit base that supports a target net interest margin of 4 % as loan pricing and deposit costs improve.
James O. Donnelly, President and CEO of Norwood, emphasized the cultural fit and operational synergies: “We are pleased to welcome PB Bankshares’ shareholders, customers and employees to our family. The combination will allow us to offer expanded products and services to the communities in our combined market areas, and the alignment of our community‑banking cultures will accelerate integration.” Janak M. Amin, President and CEO of PB Bankshares, added, “This partnership gives us greater access to additional products and services, enhancing the customer experience for our commercial and retail clients.”
Norwood’s recent financial performance provides context for the deal’s impact. In Q3 2025 the company reported diluted EPS of $0.89, an 85 % year‑over‑year increase, and a net interest margin of 3.63 %. In Q4 2024, a one‑time $20 million loss on securities sales pushed the company into a $12.7 million net loss, but the net interest margin was 3.04 %. The acquisition is expected to lift the combined margin toward the 4 % target by expanding the loan book and achieving scale efficiencies.
Analysts have maintained a positive outlook on the transaction, noting that the deal’s accretive EPS profile and potential margin improvement align with Norwood’s growth strategy. The integration of PB Bankshares’ leadership and the expansion into high‑growth markets are viewed as key drivers of the company’s future performance.
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