Company: NWFL
Filing Date: 2025-10-08
Form Type: S-4/A
Source: 0001193125-25-234244
Chunk: 28

Company: NORWOOD FINANCIAL CORP
Filing Date: 2025-10-08
Form: S-4/A
Chunk 28
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 instead of a fractional share of Norwood common stock. |

| • |     | If you receive solely cash in exchange for your PB Bankshares common stock, then you generally will recognize                                                                                                                                          
 gain or loss equal to the difference between the amount of cash you receive and your cost basis in your PB Bankshares common stock. Generally, any gain recognized upon the exchange will be capital gain, and any such capital gain will be long-term 
 capital gain if you have established a holding period of more than one year for your shares of PB Bankshares common stock.                                                                                                                             |

| • |     | If you receive a combination of Norwood common stock and cash, other than cash instead of a fractional share of                                                                                                                                         
 Norwood common stock, in exchange for your PB Bankshares common stock, then you may recognize gain, but you will not recognize loss, upon the exchange of your shares of PB Bankshares common stock for shares of Norwood common stock and cash. If the 
 sum of the fair market value of the Norwood common stock and the amount of cash you receive in exchange for your shares of PB Bankshares common stock exceeds the cost basis of your shares of PB Bankshares common stock, you will recognize taxable   
 gain equal to the lesser of the amount of such excess or the amount of cash you receive in the exchange. Generally, any gain recognized upon the exchange will be capital gain, and any such capital gain will be long-term capital gain if you have    
 established a holding period of more than one year for your shares of PB Bankshares common stock. Depending on certain facts specific to you, any gain could instead be characterized as ordinary dividend income.                                      |

For a more detailed discussion of the material United States federal income tax consequences of the transaction, see “The Merger and the Merger Agreement — Material United States Federal Income Tax Consequences of the Merger” beginning on page 99. The consequences of the merger to any particular shareholder will depend on that shareholder’s particular facts and circumstances. Accordingly, you are urged to consult your tax advisor to determine your tax consequences from the merger. Stock Market Listing (page 112) Application will be made by Norwood to have the shares of Norwood common stock to be issued in the merger approved for listing on the NASDAQ Global Market, which is the principal trading market for existing shares of Norwood common stock. It is a condition to both parties’ obligation to complete the merger that such approval be obtained, subject to official notice of issuance. In the merger, the PB Bankshares