Northwest Bancshares, Inc. Completes Acquisition of Penns Woods Bancorp, Inc.

Rhea-AI Summary

Northwest Bancshares (NASDAQ: NWBI) has successfully completed its acquisition of Penns Woods Bancorp (NASDAQ: PWOD) on July 25, 2025. The merger integrates Penns Woods' subsidiary banks, Jersey Shore State Bank and Luzerne Bank, into Northwest Bank's operations.

The strategic acquisition expands Northwest's Pennsylvania presence with 21 additional branch locations across North Central and Northeastern Pennsylvania, bringing its total network to 151 financial centers across Pennsylvania, New York, Ohio, and Indiana. Former Penns Woods CEO Richard A. Grafmyre joins Northwest's Board of Directors, and all acquired branches have been rebranded under the Northwest Bank name following system integration over July 26-27, 2025.

Positive

• Expansion of banking network with 21 new branch locations in strategic Pennsylvania markets
• Enhanced market presence across four states with 151 total financial centers
• Successful integration of complementary banking operations
• Addition of experienced leadership with Penns Woods CEO joining the board

Negative

• Potential integration challenges and costs in combining operations
• Risk of customer attrition during transition period
• Possible revenue synergy delays due to integration complexity

Insights

Banking Industry Analyst

Northwest's acquisition of Penns Woods expands PA footprint to 151 branches, strengthening regional banking presence.

Northwest Bancshares has successfully completed its acquisition of Penns Woods Bancorp, adding 21 branch locations across North Central and Northeastern Pennsylvania to its network. This strategic move expands Northwest's total footprint to 151 financial centers across Pennsylvania, New York, Ohio, and Indiana, significantly strengthening its regional banking presence.

The merger follows a common pattern in the banking industry where regional banks seek to build scale through acquisitions to compete more effectively against larger national institutions. By absorbing Penns Woods' Jersey Shore State Bank and Luzerne Bank branches (which have already been rebranded to Northwest Bank), Northwest gains immediate access to established customer relationships and deposits in key Pennsylvania markets.

The integration appears to have proceeded efficiently, with customer data conversion and branch rebranding completed over a single weekend (July 26-27). The appointment of Penns Woods' CEO Richard A. Grafmyre to Northwest's Board of Directors suggests an attempt to maintain leadership continuity and local market knowledge.

For Northwest shareholders, this expansion represents a clear growth strategy focusing on building density in the bank's core Pennsylvania market. The acquisition should provide Northwest with operational synergies through consolidated back-office functions and increased negotiating power with vendors, though specific financial details of these projected efficiencies weren't disclosed in the announcement.

The banking industry continues to consolidate as mid-sized regional players like Northwest ($14.7 billion in assets prior to this acquisition) seek to achieve economies of scale necessary to invest in technology and compliance systems while maintaining competitive service offerings against larger institutions and emerging fintech competitors.

COLUMBUS, Ohio, July 28, 2025 /PRNewswire/ -- Northwest Bancshares, Inc. ("Northwest") (NASDAQ: NWBI), the bank holding company for Northwest Bank, and Penns Woods Bancorp, Inc. ("Penns Woods") (NASDAQ: PWOD), the multi-bank holding company of Jersey Shore State Bank and Luzerne Bank, announced that, effective as of July 25, 2025, the previously announced merger of Penns Woods with and into Northwest has been completed, along with the merger of Penns Woods' wholly-owned subsidiary banks, Jersey Shore State Bank and Luzerne Bank, each with and into Northwest Bank, a Pennsylvania-chartered savings bank and wholly-owned subsidiary of Northwest, with Northwest Bank as the surviving bank.

With the closing of the merger, Northwest has appointed Richard A. Grafmyre, CEO of Penns Woods, to the Board of Directors of Northwest and Northwest Bank.

The combination with Penns Woods enhances Northwest's Pennsylvania banking presence with the addition of 21 branch locations across North Central and Northeastern Pennsylvania after the consolidation.  With the closing of the merger, Northwest now operates 151 financial centers across Pennsylvania, New York, Ohio, and Indiana.

"We are pleased to welcome Penns Woods' customers, employees and shareholders to Northwest," said Louis J. Torchio, President and CEO of Northwest. "Together, we are better positioned to deliver value to our shareholders and provide an expanded range of products and services to customers and communities across our Pennsylvania footprint."

The former Jersey Shore State Bank and Luzerne Bank financial centers have all been rebranded and now operate under the Northwest Bank name, following customer and data conversion and financial center rebranding that took place over the weekend of July 26-27.

In addition, Northwest will host a conference call to review second quarter 2025 financial results on Wednesday, July 30 at 8:30 a.m. (EDT). The financial results and supporting financial data are scheduled to be released after market close on Tuesday, July 29.  

Conference Call / Webcast Information: The live audio webcast of the call and presentation slides will be available in Events & Presentations in the Investor Relations section of the company's website (https://investorrelations.northwest.bank/events-and-presentations/).

The general public can register for the conference call by visiting https://events.q4inc.com/attendee/790934970. After registering, they will receive instructions for downloading the meeting calendar event and signing up for email reminders.

Please join 15 minutes prior to the start of the call. A replay of the webcast will be archived in the Investor Relations section of Northwest's website.

About Northwest Bancshares, Inc.

Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank.  Founded in 1896, Northwest Bank is a full-service financial institution which offers a complete line of business and consumer banking products, as well as employee benefits and wealth management services. Currently, Northwest operates 151 full-service financial centers and eleven free standing drive-up facilities in Pennsylvania, New York, Ohio, and Indiana.  Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market under the symbol NWBI.  Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed online at www.northwest.bank.

Forward-Looking Statements

This release may contain forward-looking statements with respect to the benefits of the completed merger between Northwest and Penns Woods, including, without limitation, statements with respect to the expected timing of and benefits of the merger.  Such statements are subject to numerous assumptions, risks, and uncertainties.  Actual results could differ materially from those contained or implied by such statements for a variety of factors including, without limitation: (1) the businesses of Northwest and Penns Woods may not be integrated successfully or such integration may take longer to accomplish than expected; (2) the expected cost savings and any revenue synergies from the merger may not be fully realized within the expected timeframes; and (3) disruption from the proposed merger may make it more difficult to maintain relationships with clients, associates, or suppliers.  Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release, except as required by law.

Investor Contact:
Michael Perry
814-726-2140

Media Contact:
Ian Bailey
380-400-2423
press@northwest.com

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SOURCE Northwest Bancshares, Inc.

FAQ

When did Northwest Bancshares (NWBI) complete the Penns Woods acquisition?

Northwest Bancshares completed the acquisition of Penns Woods Bancorp on July 25, 2025.

How many branches did Northwest Bancshares gain from the Penns Woods merger?

The acquisition added 21 branch locations across North Central and Northeastern Pennsylvania to Northwest's network.

What is Northwest Bancshares' (NWBI) total branch count after the Penns Woods merger?

Following the merger, Northwest now operates 151 financial centers across Pennsylvania, New York, Ohio, and Indiana.

Who from Penns Woods joined Northwest Bancshares' leadership team?

Richard A. Grafmyre, former CEO of Penns Woods, has been appointed to the Board of Directors of Northwest and Northwest Bank.

When will Northwest Bancshares (NWBI) report its Q2 2025 earnings?

Northwest will release Q2 2025 financial results after market close on Tuesday, July 29, 2025, with a conference call scheduled for Wednesday, July 30 at 8:30 a.m. EDT.