Norwood Financial and PB Bankshares, both based in Pennsylvania, have sealed a merger deal valued at around $54.9m.

The deal will see PB Bankshares integrate into Norwood Financial, strengthening the latter’s presence in Central and Southeastern Pennsylvania.

Besides, PB Bankshares’ subsidiary Presence Bank will merge into Norwood Financial subsidiary Wayne Bank, resulting in a combined entity with approximately $3bn in assets.

Norwood Financial and PB Bankshares reported total assets of $2.4bn and $467m, respectively, as of 31 March 2025.

Wayne Bank operates 30 branches across Pennsylvania and New York, while Presence Bank has four branches and a loan production office in Central and Southeastern Pennsylvania.

The transaction is due to be finalised in late 2025 or early 2026, contingent on regulatory approvals, PB Bankshares’ shareholder consent, and other standard closing conditions.

The merger terms specify that 80% of PB Bankshares’ common shares will be exchanged for Norwood Financial stock, while the remaining 20% will be converted to cash.

Shareholders can choose to receive either 0.7850 shares of Norwood Financial stock or $19.75 in cash per share, with adjustments to maintain the stock consideration ratio.

Norwood Financial president, CEO and director James Donnelly said: “I am very pleased to announce our merger with Presence Bank, a nearly 106-year-old institution which shares the same values, culture, and commitment to high quality customer service found at Wayne Bank.

“Presence is a growing and respected institution located within the most demographically attractive markets in Pennsylvania.”

Presence president, CEO and director Janak Amin said: “We are equally excited for this strategic partnership and the opportunity to gain market share in Central and Southeastern Pennsylvania.

“We have admired the leadership of Jim and his team, the similar culture and values we share, and the reputation of Wayne Bank as a premier Pennsylvania-based community bank.”