04:52 PM EDT, 07/07/2025 (MT Newswires) -- Norwood Financial ( NWFL ) agreed to buy PB Bankshares ( PBBK ) for $54.9 million in stock and cash to expand in Pennsylvania.

Under the agreement, PB Bankshares' ( PBBK ) subsidiary, Presence Bank, will merge into Norwood's Wayne Bank. Shareholders of PB Bankshares ( PBBK ) will receive 80% of their consideration in Norwood common stock and 20% in cash.

PB Bankshares ( PBBK ) holders can receive either 0.785 shares of Norwood stock or $19.75 a share in cash, subject to proration.

Following the merger, PB Bankshares ( PBBK ) investors are expected to own 14% of the combined company.

The deal is expected to be close in Q4 or Q1 2026, the companies said Monday in a statement.

Janak Amin, chief executive officer of PB Bankshares ( PBBK ), will join Wayne Bank as chief operating officer upon completion of the merger.

PB Bankshares ( PBBK ) stock rose 5% in after-hours trading Monday after gaining 5.3% in the regular session. Norwood Financial ( NWFL ) fell 0.3%.