Two Pennsylvania back holding companies have agreed to a merger deal valued at almost $55 million.
As part of the agreement, PB Bankshares, the parent company of Presence Bank, will be merged into Norwood Financial, the holding company for Wayne Bank. Norwood is based in Honesdale while PB Bankshares is headquartered in Coatesville.
Wayne Bank operates 30 banks in Pennsylvania and New York. As of March 31, Norwood Financial had consolidated assets of $2.4 billion. Presence Bank operates four banks, one loan production office and one administration office in Central and Southeastern Pennsylvania. Presence Bank had assets of $467 million as of March 31, 2025.
The combined company will have approximately $3.0 billion in assets and will operate in Northeastern, Central and Southeastern Pennsylvania.
“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,” James Donnelly, president, CEO and director of Norwood Financial, said. “Presence is a growing and respected institution located within the most demographically attractive markets in Pennsylvania. Joining these institutions provides Wayne Bank with the opportunity to deepen Presence Bank’s relationships with its customers, given our broader product mix and larger balance sheet.”
The merger represents a substantial expansion of Norwood Financial’s geographic footprint into higher growth markets in Central and Southeastern Pennsylvania.
“We are equally excited for this strategic partnership and the opportunity to gain market share in Central and Southeastern Pennsylvania,” Janak Amin, president, CEO and director of Presence, said. “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. This combination will provide our customers and communities with greater access to additional products and services. This will result in an enhanced customer experience for our commercial base and the opportunity to augment the retail portion of our business with their product set and consumer verticals.”
Amin will be joining Wayne Bank as executive vice president and chief operating officer upon closing of the transaction.
Under the terms of the deal, 80 percent of Presence’s common shares will be converted into Norwood Financial common stock while the remaining 20 percent will be exchanged for cash. Based on the closing price of $26.65 for Norwood Financial Common Stock on July 3, the transaction would have an aggregate value of approximately $54.9 million.
Holders of Presence’s common stock prior to the merger will own approximately 14 percent of Norwood Financial’s common stock. The merger is expected to be approximately 10 percent accretive to earnings per share in 2026.
Also, two non-employee Presence Bank board members will be joining the Norwood Financial and Wayne Bank boards.
The transaction is expected to close in either the late fourth quarter of 2025 or early first quarter of 2026.