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COLUMBUS, Ohio - Northwest Bancshares, Inc. (NASDAQ: NWBI), a bank holding company based in Columbus, Ohio, with a market capitalization of $1.47 billion and currently trading at $11.55, has announced that it has secured all necessary regulatory and shareholder approvals for its merger with Penns Woods Bancorp, Inc. (NASDAQ: PWOD). According to InvestingPro analysis, Northwest Bancshares currently trades below its Fair Value, suggesting potential upside opportunity for investors. The merger, which was previously made public, involves Penns Woods being consolidated into Northwest, as well as the merging of Penns Woods’ subsidiary banks, Jersey Shore State Bank and Luzerne Bank, into Northwest Bank, with Northwest Bank emerging as the surviving entity.
The Federal Deposit Insurance Corporation has given its approval for the merger of Jersey Shore State Bank and Luzerne Bank with Northwest Bank. Additionally, the Pennsylvania Department of Banking and Securities has sanctioned the merger of Penns Woods into Northwest and the consolidation of the subsidiary banks. The Federal Reserve Bank of Cleveland has also granted Northwest a waiver from its merger application requirements.
The endorsement from Penns Woods shareholders came during a special meeting held on Tuesday, where they voted in favor of the merger. The finalization of the merger is anticipated to occur in late July 2025.
Northwest Bancshares, Inc., established in 1896, operates Northwest Bank, a full-service financial institution. Northwest Bank provides a range of business and personal banking products, employee benefits, and wealth management services. It currently manages 130 full-service financial centers and eleven drive-up facilities across Pennsylvania, New York, Ohio, and Indiana. The company has maintained dividend payments for 31 consecutive years, currently offering a substantial 6.93% dividend yield. InvestingPro subscribers can access 6 additional key insights about Northwest Bancshares’ financial health and growth prospects.
Penns Woods Bancorp, Inc., the parent company of Jersey Shore State Bank and Luzerne Bank, caters to customers in North Central and Northeastern Pennsylvania with retail banking, commercial banking, mortgage services, and financial services divisions.
The press release statement indicates that the merger is expected to bring benefits, but it also contains forward-looking statements that are subject to various assumptions, risks, and uncertainties. With a P/E ratio of 14.62x and a beta of 0.53, Northwest Bancshares demonstrates relatively stable market performance. InvestingPro data shows the company maintains Fair financial health scores, with particularly strong marks in relative value and profitability metrics. These include potential delays in the integration process, the possibility of not achieving the anticipated cost savings and revenue synergies within the expected timeframes, and the risk of disruptions that could affect client, associate, or supplier relationships. Management has clarified that they are not obligated to revise or update these forward-looking statements unless required by law.
In other recent news, Northwest Bancshares, Inc. held its annual shareholder meeting, where several key governance decisions were made. Shareholders elected four directors to the board, with Mark A. Paup receiving the highest number of votes in favor. Additionally, KPMG LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. A non-binding advisory resolution to approve executive compensation also passed, reflecting shareholder sentiment on governance and executive practices. Meanwhile, DA Davidson adjusted its price target for Northwest Bancshares to $13.00 from $14.00, maintaining a Neutral rating. This adjustment followed an earnings report that, despite beating core pre-provision net revenue expectations, missed earnings per share estimates due to higher-than-expected credit costs. The report noted a 26% growth in commercial and industrial lending and a modest improvement in the core net interest margin. DA Davidson’s analysis suggests that the company shows progress in certain areas but is balanced by its current market valuation.
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