Company: NWBI
Filing Date: 2025-02-20
Form Type: S-4/A
Source: 0001193125-25-030716
Chunk: 48

Company: Northwest Bancshares, Inc.
Filing Date: 2025-02-20
Form: S-4/A
Chunk 48
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 Woods was introduced to bank holding company A by a financial advisor. A confidentiality agreement was signed with bank holding company A and
preliminary discussions with bank holding company A resulted in a non-binding indication of interest letter for an all-stock transaction. Although the price offered by
bank holding company A was in an acceptable range for possible consideration (low $30s per share at that time), the pro forma equivalent cash dividend payable to Penns Woods shareholders after the transaction would have decreased by 40% and the
transaction was not considered to otherwise be a good cultural fit for customers or employees. In December 2023, the chief executive officer of bank holding company B contacted Penns Woods’ chief executive officer to discuss a potential
business combination. A confidentiality agreement was signed with bank holding company B and limited information was exchanged between the parties. No written or verbal indication of interest was received from bank holding company B and discussions
terminated after some financial modelling by Penns Woods and its financial advisor relating to an assessment of bank holding company B’s ability to pay a price that would be acceptable to Penns Woods. Finally, in July 2024, Penns Woods was
contacted by, and executed a confidentiality agreement with, bank holding company C. Bank holding company C indicated a verbal range in the upper $20s or low $30s per share of Penns Woods common stock, but no written indication of interest was
provided by bank holding company C. Penns Woods terminated discussions with bank holding company C as a result of the verbal indication of interest on possible price range and the fact that pro forma equivalent cash dividends for Penns Woods
shareholders would have decreased in the event of a transaction with bank holding company C. None of these confidentiality agreements entered into by Penns Woods contained standstill provisions or “don’t ask/don’t waive”
provisions.

Penns Woods’ management and the board also recognized that funding continued loan growth that outpaced deposit growth
through other means could pose challenges.

Although Penns Woods has historically enjoyed a high quality core deposit base at reasonable
cost, management and the board were cognizant of the continued funding challenges resulting from demographic limitations in some of its less densely populated market areas, as well as the effects of intense competition in certain markets or
potential markets, such as State College, Pennsylvania and Northeastern Pennsylvania, resulting from the large number of financial institutions operating in those markets.

Penns Woods also utilized the capital markets to fund continued growth. During 2023, Penns Woods raised