Regional lender Northwest Bancshares, Inc. (NWBI) entered a merger agreement on December 17, 2024, to acquire Penns Woods Bancorp, Inc. (PWOD) in an all-stock deal valued at $270.4 million.
Under the terms of the agreement, Penns Woods shareholders will be entitled to receive 2.385 shares of Northwest common stock for each share of Penns Woods common stock they own. The transaction is valued at about $34.44 per share of Penns Woods common stock, representing a premium of 1.86% from the stock’s last close.
Penns Woods is the bank holding company for Jersey Shore State Bank and Luzerne Bank, offering retail and commercial banking, mortgage services, financial planning, and insurance products through 27 branches in North Central and Northeastern Pennsylvania.
Northwest is the bank holding company for Northwest Bank, a full-service financial institution offering personal and business banking, loans, wealth management, and employee benefit services through over 130 locations in Pennsylvania, New York, Ohio, and Indiana.
The merger will strengthen the company’s presence in North Central and Northeastern Pennsylvania, adding 24 branches in Blair, Centre, Clinton, Luzerne, Lycoming, Montour, and Union counties, with total assets of over $17 billion.
Upon completion, expected in the third quarter of 2025, Penns Woods shareholders will own about 12% of the combined company’s shares. Northwest will also appoint Richard Grafmyre, Penns Woods’ CEO, to the boards of Northwest and Northwest Bank.
At closing, Penns Woods’ Jersey Shore State Bank and Luzerne Bank branches will become branches of Northwest Bank.
Northwest is paying 1.25 times the book value for Penns Woods.
For more details regarding this M&A transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Penns Woods Bancorp, Inc. (PWOD) by Northwest Bancshares, Inc. (NWBI)
The Deal Metrics page for each merger or acquisition includes:
– A spread history chart of the merger from announcement through completion or failure.
– Every event as the merger progresses through the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And much more.
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Editor’s Note: Baranjot Kaur contributed to this article