Company: NWFL
Filing Date: 2025-10-28
Form Type: 424B3
Source: 0001193125-25-252482
Chunk: 152

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-28
Form: 424B3
Chunk 152
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 legal judgment but is not binding on the IRS or on any court. Neither PB Bankshares nor Norwood intends to request any ruling from the IRS as to the U.S. federal income tax consequences of the merger. Consequently, no assurance can be given that the IRS will not assert, or that a court will not sustain, a position contrary to any of the tax consequences set forth below or any of the tax consequences described in the tax opinion. Based on representations contained in representation letters of officers of PB Bankshares and Norwood, all of which must continue to be true and accurate in all material respects as of the effective time of the merger, and 100

subject to the other matters set forth above, it is the opinion of Jones Walker LLP, Washington, DC, and Barley Snyder LLP that the merger will qualify as a “reorganization” within the meaning of Section 368(a) of the Code, and each of PB Bankshares and Norwood will be a party to such reorganization. Based upon the foregoing, and subject to the limitations and qualifications described herein, the material U.S. federal income tax consequences of the merger will generally be as follows:

| • |     | no gain or loss will be recognized by PB Bankshares or Norwood as a result of the merger; |

| • |     | a holder who receives solely shares of Norwood common stock (or receives Norwood common stock and cash solely in                                                                                                                                   
 lieu of a fractional share) in exchange for shares of PB Bankshares common stock generally will not recognize any gain or loss upon the merger, except with respect to the cash received in lieu of a fractional share of Norwood common stock (as 
 discussed below);                                                                                                                                                                                                                                  |

| • |     | gain (but not loss) will be recognized by a U.S. holder that receives shares of Norwood common stock and cash in                                                                                                                                     
 exchange for shares of PB Bankshares common stock pursuant to the merger, and the amount of taxable gain will equal the lesser of (i) the amount by which the sum of the fair market value of the Norwood common stock and cash received (other than 
 cash received in lieu of a fractional share of Norwood common stock) by the U.S. holder exceeds such U.S. holder’s tax basis in its PB Bankshares common stock and (ii) the amount of cash received by such U.S. holder;                             |

| • |     | subject to the discussion under “— Potential Recharacterization of Gain as a Dividend” below,