Norwood Financial Corp. and North Penn Bancorp Announce Preliminary Results of Elections Regarding Merger Consideration

Norwood Financial Corp. NWFL and North Penn Bancorp, Inc. (NPBP) today announced the preliminary results of elections made by North Penn Bancorp, Inc. stockholders as to the form of merger consideration to be received in the pending merger of North Penn Bancorp with and into Norwood Financial. Of the 1,334,844 shares of North Penn Bancorp common stock outstanding as of April 5, 2011, 411,285 shares, or 30.8%, elected to receive Norwood Financial common stock; 804,796 shares, or 60.3%, elected to receive cash; and 118,763 shares, or 8.9%, submitted elections expressing no preference as to the form of merger consideration or did not make a valid election. Based on the preliminary information above, North Penn stockholders who made valid elections to receive stock consideration and North Penn stockholders who failed to make a valid election, or chose to make no election, will receive stock consideration for 100% of their shares subject to such election. North Penn stockholders who made valid elections to receive cash consideration will receive cash consideration for approximately 75% of their shares and stock consideration for approximately 25% of their shares subject to such election. Norwood Financial and North Penn Bancorp expect to complete the merger during the second quarter. The proposed merger, which was approved by North Penn Bancorp stockholders on April 8, 2011, remains subject to the receipt of final regulatory approvals and the satisfaction of customary closing conditions.