(WHTM) -- Northwest Bancshares, Inc., which is the holding company for Northwest Bank, has announced it has reached an agreement to acquire the Pennsylvania-based Penns Woods Bancorp, Inc.

According to Northwest, the two companies entered into a definitive 'Agreement and Plan of Merger', which will result in Northwest acquiring Penns Woods in an all-stock transaction valued at approximately $270.4 million.

The companies say that combining the two organizations will enhance their presence in North Central and Northeastern Pennsylvania.

Once the transaction is complete, Northwest will have more than 150 financial centers across, as well as loan production offices in four states.

"We are very excited to announce this partnership with the Penns Woods team as this transaction marks another milestone in our long-term growth strategy and executes on our strategic plan," Louis J. Torchio, President and CEO of Northwest, stated. "Jersey Shore State Bank and Luzerne Bank have outstanding reputations throughout their respective markets, and we look forward to welcoming our new colleagues and their customers to the Northwest family. We will be strongly positioned to continue to serve communities that are familiar to Northwest, expand our presence into new markets, and deliver exceptional banking services across our entire footprint. Through this acquisition, we look forward to building on Northwest's rich history of community-focused banking and delivering even greater value to our customers, employees, communities, and shareholders."

Once the merger is completed, the shares issued to Penns Woods shareholders are expected to comprise about 12% of the outstanding shares of the combined company.

As part of the agreement, Northwest will appoint Richard A. Grafmyre to the boards of Northwest and Northwest Bank after closing. 

According to Northwest, the transaction is slated for completion in the third quarter of 2025. At closing, Jersey Shore State Bank and Luzerne Bank branches will become Northwest Bank(s).

Northwest Bancshares, Inc. is headquartered in Columbus, Ohio, and was first founded back in 1896. Northwest Bank is a full-service financial institution that currently operates 130 full-service financial centers and eleven free-standing drive-up facilities in Pennsylvania, New York, Ohio, and Indiana. 

abc27 news will keep you updated as more information becomes available.