William J. Wagner, President and Chief Executive Officer of Northwest Bancshares, Inc., commented, "We are pleased to announce the completion of our merger with LNB Bancorp, Inc. and The Lorain National Bank. The management teams and employees of both Northwest and LNB have worked tirelessly over the past seven months to prepare for the integration of our two companies.
"We believe that this transaction will help deliver value through increased operating scale and new market opportunities. 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, shareholders of LNB Bancorp, Inc. elected to receive either 1.461 shares of Northwest Bancshares, Inc. common stock or $18.70 in cash for each common share of LNB Bancorp, Inc., subject to an overall allocation of exchanged shares into 50% cash and 50% shares of stock.
Cash will be paid in lieu of fractional shares at a rate of $12.66 per whole share of Northwest Bancshares, Inc. common stock. Northwest Bancshares, Inc. will provide information separately regarding the final results of the consideration election of LNB Bancorp, Inc. shareholders.
Northwest Bancshares, Inc. issued 7,057,229 shares of common stock in the merger (subject to adjustment for cash issued in lieu of fractional shares), and based upon the $12.58 per share closing price of Northwest Bancshares, Inc.’s common stock on August 13, 2015, the transaction value was approximately $179.1 million.
The completion of the merger has resulted in a bank with approximately $9.0 billion in total assets, providing banking services through 182 branch locations and 297 ATMs in four states. The transaction has expanded Northwest’s franchise by 21 offices located in Lorain, Cuyahoga and Summit Counties in northeastern Ohio.
