Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 153

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 153
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 gain or loss will generally be recognized by a U.S. holders that receives solely cash in exchange for shares of PB Bankshares common stock pursuant to the merger, in an amount equal to the difference between the amount of cash received and the 
 holder’s adjusted tax basis in shares of PB Bankshares common stock surrendered, and such gain or loss generally will be long-term capital gain or loss for any shares of PB Bankshares common stock for which the holder’s holding period is       
 more than one year as of the effective date of the merger;                                                                                                                                                                                          |

| • |     | the aggregate tax basis of the Norwood common stock received by a U.S. holder in the merger (including fractional                                                                                                                                       
 shares of Norwood common stock deemed received as described below) will be the same as the aggregate tax basis of the PB Bankshares common stock for which it is exchanged, decreased by the amount of cash received in the merger (other than cash     
 received in lieu of a fractional share of Norwood common stock), and increased by the amount of gain recognized on the exchange (other than with respect to cash received in lieu of a fractional share in Norwood common stock) (regardless of whether 
 such gain is classified as capital gain or as dividend income, as discussed below under “— Potential Recharacterization of Gain as a Dividend”); and                                                                                                    |

| • |     | the holding period of Norwood common stock received in exchange for shares of PB Bankshares common stock                                                                              
 (including fractional shares of Norwood common stock deemed received as described below) will include the holding period of the PB Bankshares common stock for which it is exchanged. |

If a U.S. holder acquired different blocks of PB Bankshares common stock at different times or at different prices, any gain or loss will generally be determined separately with respect to each block of PB Bankshares common stock, and the cash and shares of Norwood common stock received will be allocated pro rata to each such block of stock. A loss realized on the exchange of one block of shares cannot be used to offset a gain realized on the exchange of another block of shares, but a U.S. holder will be able to reduce its recognized capital gains by recognized capital losses in determining its income tax liability. Each U.S. holder should consult its own tax advisor with regard to identifying the basis or holding periods of the particular shares of Norwood common stock received in the merger. Taxation of Gain.Except as described under “— Potential Recharacterization of Gain as a