Ohio-based Northwest Bancshares, Inc., the bank holding company of Northwest Bank, and Williamsport-based Penns Woods Bancorp, the multibank holding company of Jersey Shore State Bank and Luzerne Bank, plan to merge in an all-stock transaction valued at approximately $270.4 million.
Under the terms of the agreement, Northwest will acquire Penns Woods by exchanging shares of its common stock for all outstanding shares of Penns Woods common stock.
The merger allows the companies to increase their presence in North Central and Northeastern Pennsylvania.
“This combination will provide the best path for the long-term success of our organization, employees, customers, and shareholders,” Richard Grafmyre, Penns Woods CEO, said. “We believe that the combination of our highly compatible organizations will create a catalyst for growth and benefit all of the communities we serve. The merger will provide increased scale and additional capabilities for our customers, and it will provide greater opportunities for our employees to advance their careers as a part of a larger organization.”
Grafmyre will become a member of the boards of directors of Northwest and Northwest Bank after the merger completes, which is expected during the third quarter of 2025. After the deal closes, Jersey Shore State Bank and Luzerne Bank branches will become branches of Northwest Bank.