Warren-based Northwest Bankshares Inc., the holding company for Northwest Bank, said it has completed its merger with Donegal Financial Services Corp., the holding company for Union Community Bank.

Under the terms of the merger agreement, the two shareholders, Donegal Mutual Insurance Co. and Donegal Group Inc., received payment of 50 percent cash and 50 percent stock, or a total of $42.5 million and 2,462,373 shares of Northwest Bankshares common stock.

The completion of the merger, which was announced Friday, has resulted in a bank with about $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.

Northwest has five branches in Butler County.

“We are pleased to announce the completion of our merger with Donegal Financial Services Corporation 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,” said Ronald J. Seiffert, chairman, president and CEO of Northwest Bancshares.