Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 152

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 152
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 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,                                                                                                                                                       
 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