Northwest Bancshares Inc. (NASDAQ: NWBI), the holding company for Northwest Bank, announced today that it has successfully completed its merger with Donegal Financial Services Corporation (DFSC), (privately-owned) the holding company for Union Community Bank (UCB).
Ronald J. Seiffert, chairman, president and chief executive officer of Northwest Bancshares Inc., commented, “We are pleased to announce the completion of our merger with Donegal Financial Services Corp. and Union Community Bank. The management teams and employees of Northwest, DFSC and UCB have worked tirelessly over the last several months to prepare for the integration of our companies. We believe that this transaction will help deliver value through increased operating scale in one of the most rapidly growing counties in our footprint. The combined strength of our institutions will allow us to better serve customers across all of our markets with a wide range of financial products and services, while maintaining the personal service they expect from their community bank.”
Under the terms of the merger agreement, the two shareholders, Donegal Mutual Insurance Co. and Donegal Group Inc., received payment in the form of 50 percent cash and 50 percent stock, or a total of $42.5 million and 2,462,373 shares of NWBI common stock.
The completion of the merger has resulted in a bank with approximately $10.1 billion in total assets, providing banking services through 182 locations and 205 ATMs in three states. The transaction has expanded Northwest’s franchise by 12 offices in Lancaster County in eastern Pennsylvania.
Ambassador Financial Group Inc. served as financial advisor and Luse Gorman, PC, served as legal counsel to Northwest in this transaction.
Keefe, Bruyette & Woods Inc. served as financial adviser and Duane Morris LLP served as legal counsel to the two shareholders of DFSC.