Company: NWBI
Filing Date: 2025-02-20
Form Type: S-4/A
Source: 0001193125-25-030716
Chunk: 72

Company: Northwest Bancshares, Inc.
Filing Date: 2025-02-20
Form: S-4/A
Chunk 72
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 of 12.5x. Stephens discounted the projected cash flows from (i) and (ii) above at Penns Woods’ estimated cost of equity to calculate a net present value range for such projected cash flows. In selecting a terminal Earnings Multiple for Penns Woods, Stephens considered the range of Earnings Multiples of Penns Woods and of the comparable public companies of Penns Woods set forth in the section entitled “Relevant Public Companies Analysis – Penns Woods” for the last ten years. Exercising its professional judgment, Stephens selected 12.5x as the terminal Earnings Multiple for Penns Woods. The following table summarizes the terminal value of Penns Woods that Stephens calculated by applying the selected terminal Earnings Multiple to Penns Woods’ estimated net income at December 31, 2029:

| 2029 Penns Woods Net Income |     | $ |  32.2 |
| x Terminal Multiple         |     |   | 12.5x |
| Terminal Value              |     | $ | 402.3 |

51

The following table summarizes the forecasted free cash flows for Penns Woods that Stephens calculated by adding (i) the net present value of projected annual dividend payments, including projected additional dividends for earnings and excess capital (if any) above a tangible common equity to tangible asset ratio of 9.0% from 2024 to 2029, and (ii) the present value of Penns Woods’ implied standalone terminal value at the end of such period:

| ($ in thousands)                                                                                  |     | Actuals    
 9/30/2024  
 12/31/2025 |           |   |     | To Year End 
 12/31/2024  
 12/31/2026  |           |   |     | To Close   
 6/30/2025  
 12/31/2027 |           |   |     | Projected  
 12/31/2028 |           |   |     | 12/31/2029 |           |   |     |    |           |   |     |    |           |   |     |    |           |   |
|:--------------------------------------------------------------------------------------------------|:----|:-----------|----------:|:--|:----|:------------|----------:|:--|:----|:-----------|----------:|:--|:----|:-----------|----------:|:--|:----|:-----------|----------:|: