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Here are 1-3 brief analogies to describe PB Bankshares (PBBK):

• PBBK is like a highly localized version of a large regional bank such as Truist, focused on communities in Wisconsin.

• Think of it as the 'local hardware store' of banking for Dane County, Wisconsin, whereas a national bank like Wells Fargo is Home Depot.

• It's like the financial equivalent of a regional airline (compared to a major carrier like Delta or United), focused on serving a specific geographic area.

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• Deposit Services: Provides various account types for individuals and businesses to save and manage their money, including checking, savings, money market, and certificates of deposit.
• Lending Services: Offers a range of loan products, such as residential mortgages, commercial real estate loans, commercial and industrial loans, and consumer loans, to meet the financing needs of its customers.
• Digital Banking & Payment Services: Delivers modern financial conveniences including online banking, mobile banking, debit cards, and treasury management solutions for businesses.

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PB Bankshares (symbol: PBBK) is a bank holding company for Peoples Bank, a community bank primarily serving communities in Maryland. As a financial institution, it provides banking and lending services to a broad base of customers rather than selling products to a few specific other companies. Its major customer categories include:

• Individual and Retail Customers: This category encompasses consumers and families who utilize personal banking services such as checking and savings accounts, money market accounts, certificates of deposit (CDs), residential mortgages, home equity loans, and various other personal loans.
• Small to Medium-Sized Business Customers: This segment includes local and regional businesses seeking commercial checking and savings accounts, business lines of credit, term loans for equipment or expansion, Small Business Administration (SBA) loans, merchant services, and treasury management services.
• Commercial Real Estate (CRE) Customers: This category comprises investors and developers who require financing for the acquisition, development, and construction of commercial properties, including office buildings, retail centers, multi-family residential projects, and industrial properties within the bank's operating footprint.

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Janak M. Amin, President, Chief Executive Officer and Director

Mr. Amin leads the team at Presence Bank with values-driven principles, cultivated throughout two decades of executive leadership experience in the banking industry in Pennsylvania and Florida. He serves as President, Chief Executive Officer, and a director of Presence Bank and PB Bankshares.

Lindsay S. Bixler, CPA, Executive Vice President and Chief Financial Officer

Ms. Bixler joined Presence Bank in May 2021 and assumed the role of Chief Financial Officer in June 2021. In this position, she is responsible for long-term strategic planning, financial analysis, budgeting, and overall accounting oversight. Prior to joining Presence Bank, Ms. Bixler was a Senior Audit Manager at RKL, LLP from November 2015 until May 2021, where she managed external and internal audits of financial institutions.

William H. Sayre, Executive Vice President, Chief Credit and Chief Risk Officer

Mr. Sayre serves as Executive Vice President, Chief Credit and Chief Risk Officer of both the company and Presence Bank.

Douglas L. Byers, Executive Vice President and Chief Banking Officer

Mr. Byers holds the position of Executive Vice President and Chief Banking Officer of Presence Bank.

Larry W. Witt, Executive Vice President and Chief Information Officer

Mr. Witt is the Executive Vice President and Chief Information Officer of the Company and Presence Bank, and also serves as Chief Operating Officer.

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The primary key risks to PB Bankshares (PBBK) are predominantly tied to its impending merger with Norwood Financial Corp (NWFL).

1. Merger Completion and Integration Risks: The most significant risks revolve around the successful completion and subsequent integration of PB Bankshares with Norwood Financial Corp. While shareholders have approved the merger and regulatory approvals have been received, there are still customary closing conditions to be met. Potential delays in closing could negatively impact valuations. Furthermore, there is a risk that the integration of the two businesses may not be successful, or it could take longer and be more costly than anticipated, potentially leading to unforeseen adverse outcomes, customer loss, and business disruption.
2. Failure to Realize Anticipated Synergies and Financial Benefits: A key risk is that the expected cost savings and other synergies, including projected earnings per share (EPS) accretion, from the merger may not be fully realized or may take longer to achieve than initially forecast. The deal structure, involving an 80% stock and 20% cash split, introduces strategic risks, and the merger is expected to result in some tangible book value dilution for Norwood Financial, which could indirectly affect PBBK shareholders receiving NWFL stock.
3. General Banking and Economic Environment Risks: Beyond the merger, PB Bankshares, as a financial institution, remains subject to general banking risks. These include the potential for the interest rate environment to compress margins and adversely affect net interest income. There are also inherent risks associated with managing credit quality, particularly with diversified assets and consumer loans, which generally carry higher risk than residential mortgages. Additionally, evolving governmental and regulatory frameworks, as well as cybersecurity and operational risks, continuously pose challenges to the banking sector.

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The increasing competition from digital-first financial technology companies (fintechs) and large technology companies entering the banking sector represents a clear emerging threat to PB Bankshares (PBBK).

These new entrants, often referred to as neobanks or challenger banks (e.g., Chime, SoFi), leverage advanced technology, lower overheads, and superior digital customer experiences to attract deposits and offer a range of banking services. Furthermore, major technology companies (e.g., Apple with its high-yield savings account in partnership with Goldman Sachs, or Google's payment initiatives) are increasingly venturing into financial services, utilizing their vast user bases and technological prowess to compete directly for consumer and small business deposits and services.

This trend directly threatens traditional community banks like PB Bankshares by:

• **Siphoning off deposits:** Customers, including individuals and small businesses, are increasingly drawn to the convenience, often lower fees, and seamless digital experience offered by these competitors for their deposit needs.
• **Eroding market share:** While PBBK focuses on business banking, the principals and employees of those businesses are often consumers targeted by fintechs, and some fintechs are now directly targeting small and medium-sized businesses for lending and payment solutions.
• **Pressuring margins:** To compete, traditional banks may need to invest heavily in technology, which can be challenging for smaller institutions, or risk losing customers to more agile, digitally native competitors.

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• Residential Mortgage Market (U.S.): The U.S. home mortgage market is projected to reach a valuation of USD 204.49 billion in 2024. Americans held $12.94 trillion in mortgage debt as of the second quarter of 2025. Mortgage originations in the U.S. rose to $1.69 trillion in 2024.
• Commercial Real Estate Lending Market (U.S.): The U.S. commercial real estate debt market comprises $4.5 trillion backed by income-producing properties and $470 billion in construction loans. Total commercial real estate (CRE) mortgage borrowing and lending in the U.S. was estimated at $498 billion in 2024, and is projected to increase by 16% to $583 billion in 2025.
• Community Banking Market (U.S.): The U.S. community banking market was valued at approximately USD 6.35 billion in 2024, with a projected compound annual growth rate (CAGR) of 3.8%. Another estimate places the U.S. community banking market at $17.79 billion in 2024, growing to $19.39 billion in 2025. This market size encompasses various services provided by community banks, including commercial and industrial loans, consumer loans, home equity lines of credit, and deposit accounts.

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1. Strategic Merger with Norwood Financial Corp.: The ongoing merger process with Norwood Financial Corp. is anticipated to generate additional synergies and growth opportunities for PB Bankshares.

2. Organic Loan Growth, particularly in Commercial Real Estate and Industrial Loan Portfolios: PB Bankshares is actively focused on expanding its commercial real estate and industrial loan portfolios. For instance, commercial real estate loans increased by $20.3 million to $205.2 million in 2024.

3. Deposit Growth and Enhanced Cash Management: The bank's strategic initiatives emphasize deposit growth and effective cash management. This focus aims to strengthen the bank's funding base and improve its net interest margin.

4. Expansion within its Community Bank Model and Geographic Reach: PB Bankshares operates under a community bank model, serving individuals and small to midsize businesses. The opening of a new administrative office in Lancaster is intended to enhance communication and support the bank's expansion efforts within its 10-county market in Southcentral Pennsylvania.

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Share Repurchases

• PB Bankshares engaged in consistent quarterly stock buybacks from September 2022 to September 2024, with reported amounts ranging from $31.63K to $844.89K.
• An aggressive share buyback program was identified as a factor contributing to a 17.46% increase in the company's stock value over the year leading up to March 2025.
• The company's 3-year average share buyback ratio was 5.1, accompanied by a shareholder yield of 16.03%.

Outbound Investments

• PB Bankshares entered into a definitive merger agreement to be acquired by Norwood Financial Corp.
• The transaction is valued at approximately $54.9 million, based on Norwood Financial's closing stock price on July 3, 2025.
• Under the terms of the merger, expected to close in late 2025 or early 2026, 80% of PB Bankshares' common shares will be converted into Norwood Financial common stock, and the remaining 20% will be exchanged for cash.

Capital Expenditures

• PB Bankshares reported quarterly capital expenditures of $18,000 for the period ending June 2025.
• Higher capital expenditures contributed to a decrease in free cash flow per share from $1.63 in 2022 to $1.31 in 2023.
• The company has a strategic focus on investing in technology to enhance the customer experience.