Company: NWBI
Filing Date: 2025-02-24
Form Type: 424B3
Source: 0001193125-25-033488
Chunk: 45

Company: Northwest Bancshares, Inc.
Filing Date: 2025-02-24
Form: 424B3
Chunk 45
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 strategic goals, strategic opportunities, including opportunities for growth organically or otherwise, and potential challenges, including challenges relating to funding continued growth. The ongoing
process of strategic planning and consideration of business alternatives is intended to serve Penns Woods’ stated mission to (i) operate as a high-performing regional community bank, (ii) create long-term shareholder value through a
combination of return on shareholders’ equity and cash dividends to shareholders, (iii) grow the banking business in a safe, sound, diversified, and profitable manner, and (iv) provide exceptional service to customers. The goals of
increasing returns on shareholders’ equity and generating returns sufficient to maintain Penns Woods’ historical cash dividend levels are typically important considerations for the board in discussing strategic direction and alternatives.

Penn Woods’ stated emphasis on continued growth in quality assets also required consideration of appropriate methods to fund growth.
The board has been receptive to considering a number of different alternatives to fund continued growth, including an acquisition of one or more smaller financial institutions, a business combination with a larger financial institution that could
provide additional financial resources as well as acceptable shareholder returns, and funding loan growth through core and other deposit growth or through equity capital raises.

Over the past few years, Penns Woods’ Chief Executive Officer and President and Chief Financial Officer, at the board’s direction
and in connection with the board’s ongoing consideration of strategic paths, met

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or had discussions with certain financial institutions operating in Penns Woods’ market area, both institutions larger and smaller than Penns Woods, regarding a potential business
combination.

With respect to smaller institutions considered to be potential acquisition candidates, Penns Woods concluded, based on
preliminary discussions with the institutions contacted, that the institutions either had no desire to sell or had price expectations that were not in line with the price that Penns Woods was willing to offer. Penns Woods also acknowledged that,
given merger activity in recent years and the lack of de novo banking activity, there was a relative scarcity in the number of smaller community banks that would be an appropriate merger partner. Finally, the generally depressed market prices of
bank stocks generally during this period, including the market price of Penns Woods common stock, made an all-stock acquisition of a smaller institution challenging and an acquisition involving a substantial
amount of cash would have negative effects on capital.

With respect to larger institutions, Penns Woods had preliminary discussions over
the past few years with three different Pennsylvania-based bank holding companies. In January 2022, Penns Woods was introduced to