The holding company for Northwest Bank has agreed to acquire Penns Woods Bancorp in an all-stock deal valued at $270.3 million. Northwest Bancshares said Tuesday it would absorb Penns Woods, the holding company for Jersey Shore State Bank and Luzerne Bank, to create a combined company with a deeper presence throughout Pennsylvania.

Northwest Bancshares Inc. (Northwest), the bank holding company for Northwest Bank, and Penns Woods Bancorp Inc. (Penns Woods), the multi-bank holding company of Jersey Shore State Bank

Northwest Bancshares, Inc., the bank holding company for Northwest Bank, and Penns Woods Bancorp, Inc., the multi-bank holding company of Jersey Shore State Bank and Luzerne Bank, jointly announced today that they have entered into a definitive Agreement and Plan of Merger whereby Northwest will acquire Penns Woods in an all-stock transaction valued at approximately

Upon completion of the merger, the shares issued to Penns Woods shareholders are expected to comprise approximately 12% of the outstanding shares of the combined company. The Agreement also provides that Northwest will appoint Richard A. Grafmyre to the boards of Northwest and Northwest Bank after closing.

Bank holding company Northwest Bancshares (NASDAQ:NWBI) is set to acquire Penns Woods Bancorp (NASDAQ:PWOD) in an all-stock transaction valued at ~$270.4M. NWBI shares were trading -1.04% Tuesday pre-market at $14.