0001471265false00014712652024-07-232024-07-23


SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  July 23, 2024
 
Northwest Bancshares, Inc.
(Exact name of registrant as specified in its charter)
 
Maryland 001-34582 27-0950358
(State or other jurisdiction of incorporation) (Commission File No.) (I.R.S. Employer Identification No.)
 
3 Easton Oval Suite 500ColumbusOhio 43219
(Address of principal executive office) (Zip code)
 
(814) 726-2140
(Registrant’s telephone number, including area code)  

Not Applicable
(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, 0.01 Par ValueNWBINASDAQ Stock Market, LLC

    Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

    Indicate by a check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange act. ☐


Item 2.02                                           Results of Operations and Financial Condition
 
    On July 23, 2024, Northwest Bancshares, Inc. issued a press release announcing its financial results for the three and six month period ended June 30, 2024 (the "Press Release"), and posted on its website its second quarter 2024 supplemental earnings release presentation (the "Supplemental Earnings Release Presentation"). The Press Release and Supplemental Earnings Release Presentation are being furnished as Exhibit 99.1 and Exhibit 99.2, respectively.

The information in the preceding paragraph, as well as Exhibit 99.1 and Exhibit 99.2 referenced therein, is being furnished to the SEC and shall not be deemed “filed” for any purpose.

Item 9.01                                           Financial Statements and Exhibits
 
(a)                                 Not applicable
 
(b)                                 Not applicable
 
(c)                                  Not applicable
 
(d)                                 Exhibits
 
Exhibit No. Description
   
 Press release dated July 23, 2024
Supplemental Earnings Release Presentation reviewed during the conference call
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
 
  NORTHWEST BANCSHARES, INC.
   
Date:July 23, 2024 By:
/s/ Douglas M. Schosser
  Douglas M. Schosser
  Chief Financial Officer



EXHIBIT 99.1
 
PRESS RELEASE OF NORTHWEST BANCSHARES, INC.
EARNINGS RELEASE
 
FOR IMMEDIATE RELEASE
 
Contact:Louis J. Torchio, President and Chief Executive Officer
Douglas M. Schosser, Chief Financial Officer (814) 726-2140
 
Northwest Bancshares, Inc. Announces Second Quarter 2024 net income of $5 million,
or $0.04 per diluted share

The Company’s adjusted net operating income was $35 million, or $0.27 per diluted share(1)
Previously announced balance sheet restructure successfully completed
Net interest margin expands 10 basis points to 3.20%
Credit quality remains strong
119th consecutive quarterly dividend of $0.20 per share declared
 
Columbus, Ohio — July 23, 2024
 
Northwest Bancshares, Inc., (the “Company”), (NasdaqGS: NWBI) announced net income for the quarter ended June 30, 2024 of $5 million, or $0.04 per diluted share. This represents a decrease of $28 million compared to the same quarter last year, when net income was $33 million, or $0.26 per diluted share, and a decrease of $24 million compared to the prior quarter, when net income was $29 million, or $0.23 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended June 30, 2024 were 1.24% and 0.13% compared to 8.72% and 0.93% for the same quarter last year and 7.57% and 0.81% from the prior quarter.

Excluding loss on the sale of investments of $28 million, net of tax, and restructuring expense of $1 million, net of tax, the Company’s adjusted net operating income was $35 million, or $0.27 per diluted share for the quarter ended June 30, 2024. This represents an increase of $1 million from the same quarter last year, when adjusted net operating income was $34 million, or $0.27 per diluted share, and an increase of $5 million compared to the prior quarter, where adjusted net operating income was $30 million, or $0.23 per diluted share. The adjusted annualized returns on average shareholders’ equity and average assets for the quarter ended June 30, 2024 were 9.00% and 0.96% compared to 9.02% and 0.96% for the same quarter last year and 7.75% and 0.83% from the prior quarter.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on August 14, 2024 to shareholders of record as of August 2, 2024. This is the 119th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company’s common stock as of June 30, 2024, this represents an annualized dividend yield of approximately 6.9%.

In the quarter, as previously disclosed, the Company repositioned its security portfolio by selling 15% of its investment securities with proceeds totaling $276 million at a pre-tax loss of $39 million, or $28 million after tax. The proceeds of the sale were immediately used to repay short-term borrowings. In addition, $258 million has already been invested into securities netting a 420 basis point higher yield. The Company currently expects to earn-back the loss over the next three years.

Louis J. Torchio, President and CEO, added, “Our core earnings this quarter reflect our commitment to responsible growth, with particularly strong performance in our commercial division. I’m especially proud of the flawless execution of our previously announced securities restructuring, which has yielded results surpassing our initial projections. This success underscores our team’s ability to implement strategic initiatives effectively while maintaining focus on our core business objectives.”

“Performance this quarter highlights the significant progress in our commercial transformation strategy. We’ve seen solid loan growth, particularly in commercial and industrial originations, which aligns with our strategic focus. This targeted growth outpaces less preferred categories in the current market, such as commercial office space or long-term health care. Our success in this area not only validates our strategic direction but also positions us well for sustained, quality growth in the commercial sector.”

(1) See reconciliation of non-GAAP financial measures for additional information relating to these items.
1

Balance Sheet Highlights

Dollars in thousandsChange 2Q24 vs.
2Q241Q242Q231Q242Q23
Average loans receivable$11,368,749 11,345,308 11,065,660 0.2 %2.7 %
Average investments2,021,347 2,051,058 2,233,987 (1.4)%(9.5)%
Average deposits12,086,362 11,887,954 11,420,702 1.7 %5.8 %
Average borrowed funds323,191 469,697 837,358 (31.2)%(61.4)%

•Average loans receivable increased $303 million from the quarter ended June 30, 2023 driven by our commercial banking portfolio, which grew by $631 million in total, including a $444 million increase in our commercial and industrial portfolio as we have continued to build-out our commercial lending verticals. Compared to the first quarter of 2024, average loans receivable increased by $23 million, also driven by growth in the commercial banking portfolio.
•Average investments declined $213 million from the quarter ended June 30, 2023 and $30 million from the quarter ended March 31, 2024. The decline from the prior year was driven by the investment portfolio restructure described above and from lack of reinvestment of cash flow over the past year. The decline in investments from the prior quarter is expected to be temporary and was also driven by the timing of the investment portfolio repositioning activity.
•Average deposits grew $666 million from the quarter ended June 30, 2023, driven by a $1.1 billion increase in our average time deposits as we continued competitively positioning our deposit products. This increase was partially offset by a decrease in money market balances as customers shifted balances into higher yielding time deposit accounts. Compared to the first quarter of 2024, average deposits grew $198 million, also driven by an increase in time deposits.
•Average borrowings saw a significant reduction of $514 million compared to the quarter end June 30, 2023 and $147 million compared to the quarter ended March 31, 2024. The decrease in average borrowings is primarily attributable to the strategic pay-down of wholesale borrowings. This decrease was made possible by our repositioning of our securities portfolio as well as a substantial increase in cash reserves resulting from the notable rise in the average balance of deposits noted above.

Income Statement Highlights

Dollars in thousandsChange 2Q24 vs.
2Q241Q242Q231Q242Q23
Interest income$166,854 160,239 143,996 4.1 %15.9 %
Interest expense60,013 57,001 35,447 5.3 %69.3 %
Net interest income$106,841 103,238 108,549 3.5 %(1.6)%
Net interest margin3.20 %3.10 %3.28 %

Net interest income decreased $2 million and net interest margin decreased to 3.20% for the quarter ended June 30, 2024 from 3.28% for the quarter ended June 30, 2023. This decrease in net interest income resulted primarily from:

•A $23 million increase in interest income that was the result of cash and marketable securities being redeployed into higher yielding loans. Driven by higher market interest rates, the average yield on loans improved to 5.47% for the quarter ended June 30, 2024 from 4.83% for the quarter ended June 30, 2023.
•A $25 million increase in interest expense more than offset the increase in interest income as the result of higher costs of deposits due to the higher interest rate environment and competitive pressure for liquidity. The cost of interest-bearing liabilities increased to 2.40% for the quarter ended June 30, 2024 from 1.47% for the quarter ended June 30, 2023.

Compared to the quarter ended March 31, 2024, net interest income increased $4 million and net interest margin increased to 3.20% for the quarter ended June 30, 2024. This increase in net interest income resulted from the following:

•A $7 million increase in interest income driven by higher interest income on loans receivable as both the average balance and average yield increased compared to the prior quarter. The average yield on loans improved to 5.47% from 5.33% for the quarter ended March 31, 2024.
•Partially offsetting the increase in interest income was a $3 million increase in interest expense due to increases in both the average balance and average yield of interest-earning deposits. The cost of interest-bearing liabilities increased to 2.40% from 2.28% for the quarter ended March 31, 2024.

2

Dollars in thousandsChange 2Q24 vs.
2Q241Q242Q231Q242Q23
Provision for credit losses - loans$2,169 4,234 6,010 (48.8)%(63.9)%
Provision for credit losses - unfunded commitments(2,539)(799)2,920 217.8 %(187.0)%
Total provision for credit losses expense$(370)3,435 8,930 (110.8)%(104.1)%

The total provision for credit losses for the quarter ended June 30, 2024 was a credit of $0.4 million primarily driven by improvements in the economic forecasts coupled with a decline in our reserves for unfunded commitments in the current period. This decline is based on the timing of origination and funding of commercial construction loans and lines of credit.

Additionally, the Company continued to experience low levels of classified loans with a slight increase to $257 million or 2.26% of total loans at June 30, 2024 from $214 million, or 1.90% of total loans, at June 30, 2023 and $229 million, or 1.99% of total loans, at March 31, 2024.

Dollars in thousandsChange 2Q24 vs.
2Q241Q242Q231Q242Q23
Noninterest income:
Loss on sale of investments$(39,413)— (8,306)NA374.5 %
Gain on sale of mortgage servicing rights— — 8,305NA(100.0)%
Gain on sale of SBA loans1,457 87383266.9 %75.1 %
Service charges and fees15,527 15,523 14,833 — %4.7 %
Trust and other financial services income7,566 7,127 6,866 6.2 %10.2 %
Gain on real estate owned, net487 57 785 754.4 %(38.0)%
Income from bank-owned life insurance1,371 1,502 1,304 (8.7)%5.1 %
Mortgage banking income901 452 1,028 99.3 %(12.4)%
Other operating income3,255 2,429 4,150 34.0 %(21.6)%
Total noninterest (loss)/income(8,849)27,963 29,797 (131.6)%(129.7)%
     
Noninterest income for the quarter ended June 30, 2024 showed a loss of $9 million inclusive of a $39 million loss on the sale of investment securities, excluding the loss on sale of securities net interest income grew by $1 million, or 3%, from the quarter ended June 30, 2023 and $3 million, or 9% from the quarter ended March 31, 2024. In addition, in the prior year period we realized a gain on sale of mortgage servicing rights of $8 million and an offsetting loss on the sale of investments of $8 million.

Dollars in thousandsChange 2Q24 vs.
2Q241Q242Q231Q242Q23
Noninterest expense:
Personnel expense$53,531 51,540 47,650 3.9 %12.3 %
Non personnel expense38,88938,48438,2081.1 %1.8 %
Total noninterest expense$92,420 90,024 85,858 2.7 %7.6 %

Noninterest expense increased from the quarter ended June 30, 2023 due to a $6 million increase in personnel expenses driven by the build-out of the commercial business and related credit, risk management and internal audit support functions over the past year.

Compared to the quarter ended March 31, 2024, noninterest expense increased due to a $2 million increase in personnel expense driven by an annual salary merit increase, additional contracted employees utilized during the quarter and an increase in incentive compensation expenses.

Dollars in thousandsChange 2Q24 vs.
2Q241Q242Q231Q242Q23
Income before income taxes$5,942 37,742 43,558 (84.3)%(86.4)%
Income tax expense1,1958,57910,514(86.1)%(88.6)%
Net income$4,747 29,163 33,044 (83.7)%(85.6)%

The provision for income taxes decreased by $9 million from the quarter ended June 30, 2023 and $7 million from the quarter ended March 31, 2024 primarily due to lower income before income taxes.

3

Net income declined compared to both the quarter ended June 30, 2023 and the quarter ended March 31, 2024 due to loss on sale of investments from the current period balance sheet restructuring as well as the additional factors discussed above.

Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank. Founded in 1896 Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of June 30, 2024, Northwest operated 131 full-service financial centers and eight free standing drive-through facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.’s common stock is listed on the NASDAQ Global Select Market (“NWBI”). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.
 
#                      #                      #

Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including inflation and an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; (7) increased risk associated with commercial real-estate and business loans; (8) changes in liquidity, including the size and composition of our deposit portfolio; (9) reduction in the value of our goodwill and other intangible assets; and (10) the effect of any pandemic, including COVID-19, war or act of terrorism. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.
4

Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(dollars in thousands, except per share amounts)
June 30,
2024		December 31,
2023		June 30,
2023
Assets  
Cash and cash equivalents$228,433 122,260 127,627 
Marketable securities available-for-sale (amortized cost of $1,202,354, $1,240,003 and $1,287,101, respectively)
1,029,191 1,043,359 1,073,952 
Marketable securities held-to-maturity (fair value of $663,292, $699,506 and $718,676, respectively)
784,208 814,839 847,845 
Total cash and cash equivalents and marketable securities2,041,832 1,980,458 2,049,424 
Loans held-for-sale9,445 8,768 16,077 
Residential mortgage loans3,315,303 3,419,417 3,479,080 
Home equity loans1,180,486 1,227,858 1,276,062 
Consumer loans2,080,058 2,126,027 2,201,062 
Commercial real estate loans3,026,958 2,974,010 2,895,224 
Commercial loans1,742,114 1,658,729 1,403,726 
Total loans receivable11,354,364 11,414,809 11,271,231 
Allowance for credit losses(125,070)(125,243)(124,423)
Loans receivable, net11,229,294 11,289,566 11,146,808 
FHLB stock, at cost20,842 30,146 44,613 
Accrued interest receivable48,739 47,353 37,281 
Real estate owned, net74 104 371 
Premises and equipment, net128,208 138,838 139,915 
Bank-owned life insurance253,890 251,895 257,614 
Goodwill380,997 380,997 380,997 
Other intangible assets, net3,954 5,290 6,809 
Other assets277,723 294,458 227,659 
Total assets$14,385,553 14,419,105 14,291,491 
Liabilities and shareholders’ equity  
Liabilities  
Noninterest-bearing demand deposits$2,581,699 2,669,023 2,820,563 
Interest-bearing demand deposits2,565,750 2,634,546 2,577,653 
Money market deposit accounts1,964,841 1,968,218 2,154,253 
Savings deposits2,148,727 2,105,234 2,120,215 
Time deposits2,826,362 2,602,881 1,989,711 
Total deposits12,087,379 11,979,902 11,662,395 
Borrowed funds242,363 398,895 632,313 
Subordinated debt114,364 114,189 114,015 
Junior subordinated debentures129,703 129,574 129,444 
Advances by borrowers for taxes and insurance52,271 45,253 57,143 
Accrued interest payable21,423 13,669 4,936 
Other liabilities181,452 186,306 179,744 
Total liabilities12,828,955 12,867,788 12,779,990 
Shareholders’ equity  
Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares issued
— — — 
Common stock, $0.01 par value: 500,000,000 shares authorized, 127,307,997, 127,110,453 and 127,088,963 shares issued and outstanding, respectively
1,273 1,271 1,271 
Additional paid-in capital1,027,703 1,024,852 1,022,189 
Retained earnings657,706 674,686 657,292 
Accumulated other comprehensive loss(130,084)(149,492)(169,251)
Total shareholders’ equity1,556,598 1,551,317 1,511,501 
Total liabilities and shareholders’ equity$14,385,553 14,419,105 14,291,491 
Equity to assets10.82 %10.76 %10.58 %
Tangible common equity to assets*8.37 %8.30 %8.08 %
Book value per share$12.23 12.20 11.89 
Tangible book value per share*$9.20 9.17 8.84 
Closing market price per share$11.55 12.48 10.60 
Full time equivalent employees1,991 2,098 2,025 
Number of banking offices139 142 142 
*    Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
5

Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)
 Quarter ended
 June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
 
Interest income:    
Loans receivable$153,954 149,571 146,523 140,667 132,724 
Mortgage-backed securities9,426 7,944 7,951 8,072 8,326 
Taxable investment securities728 794 786 786 841 
Tax-free investment securities457 491 492 491 667 
FHLB stock dividends498 607 666 668 844 
Interest-earning deposits1,791 832 970 914 594 
Total interest income166,854 160,239 157,388 151,598 143,996 
Interest expense:    
Deposits52,754 47,686 40,600 31,688 21,817 
Borrowed funds7,259 9,315 10,486 11,542 13,630 
Total interest expense60,013 57,001 51,086 43,230 35,447 
Net interest income106,841 103,238 106,302 108,368 108,549 
Provision for credit losses - loans2,169 4,234 3,801 3,983 6,010 
Provision for credit losses - unfunded commitments(2,539)(799)4,145 (2,981)2,920 
Net interest income after provision for credit losses107,211 99,803 98,356 107,366 99,619 
Noninterest income: 
Loss on sale of investments(39,413)— (1)— (8,306)
Gain on sale of mortgage servicing rights— — — — 8,305 
Gain on sale of SBA loans1,457 873 388 301 832 
Gain on sale of loans— — 726 — — 
Service charges and fees15,527 15,523 15,922 15,270 14,833 
Trust and other financial services income7,566 7,127 6,884 7,085 6,866 
Gain on real estate owned, net487 57 1,084 29 785 
Income from bank-owned life insurance1,371 1,502 1,454 4,561 1,304 
Mortgage banking income901 452 247 632 1,028 
Other operating income3,255 2,429 2,465 3,010 4,150 
Total noninterest (loss)/income(8,849)27,963 29,169 30,888 29,797 
Noninterest expense: 
Compensation and employee benefits53,531 51,540 50,194 51,243 47,650 
Premises and occupancy costs7,464 7,627 7,049 7,052 7,579 
Office operations3,819 2,767 3,747 3,398 2,800 
Collections expense406 336 328 551 429 
Processing expenses14,695 14,725 15,017 14,672 14,648 
Marketing expenses2,410 2,149 1,317 2,379 2,856 
Federal deposit insurance premiums2,865 3,023 2,643 2,341 2,064 
Professional services3,728 4,065 6,255 3,002 3,804 
Amortization of intangible assets635 701 724 795 842 
Real estate owned expense57 66 51 141 83 
Merger, asset disposition and restructuring expense1,915 955 2,354 — 1,593 
Other expenses895 2,070 997 1,996 1,510 
Total noninterest expense92,420 90,024 90,676 87,570 85,858 
Income before income taxes5,942 37,742 36,849 50,684 43,558 
Income tax expense1,195 8,579 7,835 11,464 10,514 
Net income$4,747 29,163 29,014 39,220 33,044 
Basic earnings per share$0.04 0.23 0.23 0.31 0.26 
Diluted earnings per share$0.04 0.23 0.23 0.31 0.26 
Annualized return on average equity1.24 %7.57 %7.64 %10.27 %8.72 %
Annualized return on average assets0.13 %0.81 %0.80 %1.08 %0.93 %
Annualized return on average tangible common equity *1.65 %10.08 %10.28 %13.80 %11.71 %
Efficiency ratio94.31 %68.62 %66.93 %62.88 %62.06 %
Efficiency ratio, excluding certain items **65.41 %67.35 %64.66 %62.31 %60.30 %
Annualized noninterest expense to average assets2.57 %2.51 %2.51 %2.42 %2.42 %
Annualized noninterest expense to average assets, excluding certain items**2.50 %2.47 %2.43 %2.39 %2.35 %
*    Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
**    Excludes loss on sale of investments, gain on sale of mortgage servicing rights, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
6

Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)
Six months ended June 30,
20242023
Interest income:
Loans receivable$303,525 256,469 
Mortgage-backed securities17,370 16,863 
Taxable investment securities1,522 1,686 
Tax-free investment securities948 1,367 
FHLB stock dividends1,105 1,534 
Interest-earning deposits2,623 1,017 
Total interest income327,093 278,936 
Interest expense:
Deposits100,440 33,055 
Borrowed funds16,574 24,868 
Total interest expense117,014 57,923 
Net interest income210,079 221,013 
Provision for credit losses - loans6,403 10,880 
Provision for credit losses - unfunded commitments(3,338)3,046 
Net interest income after provision for credit losses207,014 207,087 
Noninterest income:
Loss on sale of investments(39,413)(8,306)
Gain on sale of mortgage servicing rights— 8,305 
Gain on sale of SBA loans2,330 1,111 
Service charges and fees31,050 28,022 
Trust and other financial services income14,693 13,315 
Gain on real estate owned, net544 893 
Income from bank-owned life insurance2,873 2,573 
Mortgage banking income1,353 1,552 
Other operating income5,684 6,301 
Total noninterest income19,114 53,766 
Noninterest expense:
Compensation and employee benefits105,071 94,254 
Premises and occupancy costs15,091 15,050 
Office operations6,586 5,810 
Collections expense742 816 
Processing expenses29,420 28,998 
Marketing expenses4,559 5,748 
Federal deposit insurance premiums5,888 4,287 
Professional services7,793 8,562 
Amortization of intangible assets1,336 1,751 
Real estate owned expense123 264 
Merger, asset disposition and restructuring expense2,870 4,395 
Other expenses2,965 3,373 
Total noninterest expense182,444 173,308 
Income before income taxes43,684 87,545 
Income tax expense9,774 20,822 
Net income$33,910 66,723 
Basic earnings per share$0.27 0.53 
Diluted earnings per share$0.27 0.52 
Annualized return on average equity4.41 %8.91 %
Annualized return on average assets0.47 %0.95 %
Annualized return on tangible common equity *5.88 %12.01 %
Efficiency ratio79.60 %63.07 %
Efficiency ratio, excluding certain items **66.36 %60.83 %
Annualized noninterest expense to average assets2.54 %2.46 %
Annualized noninterest expense to average assets, excluding certain items **2.48 %2.38 %
*    Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
**    Excludes loss on sale of investments, gain on sale of mortgage servicing rights, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
7

Northwest Bancshares, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited) *
(dollars in thousands, except per share amounts)
Quarter endedSix months ended June 30,
June 30, 2024March 31, 2024June 30, 202320242023
Reconciliation of net income to adjusted net operating income:
Net income (GAAP)$4,747 29,163 33,044 33,910 66,723 
Non-GAAP adjustments
Add: merger, asset disposition and restructuring expense1,915 955 1,593 2,870 4,395 
Add: loss on the sale of investments39,413 — 8,306 39,413 8,306 
Less: gain on sale of mortgage servicing rights— — (8,305)— (8,305)
Less: tax benefit of non-GAAP adjustments(11,572)(267)(446)(11,839)(1,231)
Adjusted net operating income (non-GAAP)$34,503 29,851 34,192 64,354 69,888 
Diluted earnings per share (GAAP)$0.04 0.23 0.26 0.27 0.52 
Diluted adjusted operating earnings per share (non-GAAP)$0.27 0.23 0.27 0.51 0.55 
Average equity$1,541,434 1,549,870 1,519,990 1,545,651 1,509,466 
Average assets14,458,592 14,408,612 14,245,917 14,433,602 14,184,050 
Annualized return on average equity (GAAP)1.24 %7.57 %8.72 %4.41 %8.91 %
Annualized return on average assets (GAAP)0.13 %0.81 %0.93 %0.47 %0.95 %
Annualized return on average equity, excluding merger, asset disposition and restructuring expense, loss on the sale of investments and gain on sale of mortgage servicing rights, net of tax (non-GAAP)9.00 %7.75 %9.02 %8.37 %9.34 %
Annualized return on average assets, excluding merger, asset disposition and restructuring expense, loss on sale of investments, and gain on sale of mortgage servicing rights, net of tax (non-GAAP)0.96 %0.83 %0.96 %0.90 %0.99 %
The following non-GAAP financial measures used by the Company provide information useful to investors in understanding our operating performance and trends, and facilitate comparisons with the performance of our peers. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s Consolidated Statements of Financial Condition.
June 30,
2024		December 31,
2023		June 30,
2023
Tangible common equity to assets
Total shareholders’ equity$1,556,598 1,551,317 1,511,501 
  Less: goodwill and intangible assets(384,951)(386,287)(387,806)
Tangible common equity$1,171,647 1,165,030 1,123,695 
Total assets$14,385,553 14,419,105 14,291,491 
Less: goodwill and intangible assets(384,951)(386,287)(387,806)
  Tangible assets$14,000,602 14,032,818 13,903,685 
Tangible common equity to tangible assets8.37 %8.30 %8.08 %
Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments
Tangible common equity$1,171,647 1,165,030 1,123,695 
Less: unrealized losses on held to maturity investments(120,916)(115,334)(129,169)
Add: deferred taxes on unrealized losses on held to maturity investments33,856 32,294 36,167 
Tangible common equity, including unrealized losses on held-to-maturity investments$1,084,587 1,081,990 1,030,693 
Tangible assets$14,000,602 14,032,818 13,903,685 
Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments7.75 %7.71 %7.41 %
Tangible book value per share
Tangible common equity$1,171,647 1,165,030 1,123,695 
Common shares outstanding127,307,997 127,110,453 127,088,963 
Tangible book value per share9.20 9.17 8.84 
8

Northwest Bancshares, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited) *
(dollars in thousands, except per share amounts)

The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s Consolidated Statements of Income.
Quarter endedSix months ended June 30,
June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		20242023
Annualized return on average tangible common equity
Net income$4,747 29,163 29,014 39,220 33,044 33,910 66,723 
Average shareholders’ equity1,541,434 1,549,870 1,506,895 1,515,287 1,519,990 1,545,651 1,509,466 
Less: average goodwill and intangible assets(385,364)(386,038)(386,761)(387,523)(388,354)(385,701)(388,793)
Average tangible common equity$1,156,070 1,163,832 1,120,134 1,127,764 1,131,636 1,159,950 1,120,673 
Annualized return on average tangible common equity1.65 %10.08 %10.28 %13.80 %11.71 %5.88 %12.01 %
Efficiency ratio, excluding loss on the sale of investments, gain on the sale of mortgage servicing rights, amortization and merger, asset disposition and restructuring expenses
Non-interest expense$92,420 90,024 90,676 87,570 85,858 182,444 173,308 
Less: amortization expense(635)(701)(724)(795)(842)(1,336)(1,751)
Less: merger, asset disposition and restructuring expenses(1,915)(955)(2,354)— (1,593)(2,870)(4,395)
Non-interest expense, excluding amortization and merger, assets disposition and restructuring expenses$89,870 88,368 87,598 86,775 83,423 178,238 167,162 
Net interest income$106,841 103,238 106,302 108,368 108,549 210,079 221,013 
Non-interest income(8,849)27,963 29,169 30,888 29,797 19,114 53,766 
  Add: loss on the sale of investments39,413 — 1 — 8,306 39,413 8,306 
  Less: gain on sale of mortgage servicing rights— — — — — — (8,305)— (8,305)
Net interest income plus non-interest income, excluding loss on sale of investments and gain on sale of mortgage servicing rights$137,405 131,201 135,472 139,256 138,347 268,606 274,780 
Efficiency ratio, excluding loss on sale of investments, gain on sale of mortgage servicing rights, amortization and merger, asset disposition and restructuring expenses65.41 %67.35 %64.66 %62.31 %60.30 %66.36 %60.83 %
Annualized non-interest expense to average assets, excluding amortization and merger, asset disposition and restructuring expense
Non-interest expense excluding amortization and merger, asset disposition and restructuring expenses$89,870 88,368 87,598 86,775 83,423 178,238 167,162 
Average assets14,458,592 14,408,612 14,329,020 14,379,323 14,245,917 14,433,602 14,184,050 
Annualized non-interest expense to average assets, excluding amortization and merger, asset disposition and restructuring expense2.50 %2.47 %2.43 %2.39 %2.35 %2.48 %2.38 %
*    The table summarizes the Company’s results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude merger, asset disposition and restructuring expense, loss on sale of investments and gain on sale of mortgage servicing rights. The net tax effect was calculated using statutory tax rates of approximately 28.0%. The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.
9

Northwest Bancshares, Inc. and Subsidiaries
Deposits (Unaudited)
(dollars in thousands)

Generally, deposits in excess of $250,000 are not federally insured. The following table provides details regarding the Company’s uninsured deposits portfolio:
As of June 30, 2024
BalancePercent of
total deposits		Number of
relationships
Uninsured deposits per the Call Report (1)$3,019,897 24.98 %5,062 
Less intercompany deposit accounts1,163,566 9.62 %12 
Less collateralized deposit accounts468,815 3.88 %243 
Uninsured deposits excluding intercompany and collateralized accounts$1,387,516 11.48 %4,807
(1)      Uninsured deposits presented may be different from actual amounts due to titling of accounts.

Our largest uninsured depositor, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $19.4 million, or 0.16% of total deposits, as of June 30, 2024. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $102 million, or 0.84% of total deposits, as of June 30, 2024. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $289,000 as of June 30, 2024.

The following table provides additional details for the Company’s deposit portfolio:
As of June 30, 2024
BalancePercent of
total deposits		Number of
accounts
Personal noninterest bearing demand deposits$1,350,520 11.2 %286,513 
Business noninterest bearing demand deposits1,231,179 10.2 %43,499 
Personal interest-bearing demand deposits1,396,825 11.5 %57,185 
Business interest-bearing demand deposits1,168,9259.7 %7,786 
Personal money market deposits1,390,162 11.5 %24,906 
Business money market deposits574,679 4.7 %2,777 
Savings deposits2,148,727 17.8 %187,406 
Time deposits2,826,362 23.4 %81,844 
Total deposits $12,087,379 100.0 %691,916

Our average deposit account balance as of June 30, 2024 was $17,000. The Company’s insured cash sweep deposit balance was $394 million as of June 30, 2024.

The following table provides additional details regarding the Company’s deposit portfolio over time:
12/31/20223/31/20236/30/20239/30/202312/31/20233/31/20246/30/2024
Personal noninterest bearing demand deposits$1,412,227 1,428,232 1,397,167 1,375,144 1,357,875 1,369,294 1,350,520 
Business noninterest bearing demand deposits1,581,016 1,467,860 1,423,396 1,399,147 1,311,148 1,249,085 1,231,179 
Personal interest-bearing demand deposits1,718,806 1,627,546 1,535,254 1,477,617 1,464,058 1,427,140 1,396,825 
Business interest-bearing demand deposits499,059 466,105 624,252 689,914 812,433 805,069 815,358 
Municipal demand deposits468,566 447,852 418,147 430,549 358,055 325,657 353,567 
Personal money market deposits1,832,583 1,626,614 1,511,652 1,463,689 1,435,939 1,393,532 1,390,162 
Business money market deposits624,986 701,436 642,601 579,124 532,279 559,005 574,679 
Savings deposits2,275,020 2,194,743 2,120,215 2,116,360 2,105,234 2,156,048 2,148,727 
Time deposits1,052,285 1,576,791 1,989,711 2,258,338 2,602,881 2,786,814 2,826,362 
Total deposits $11,464,548 11,537,179 11,662,395 11,789,882 11,979,902 12,071,644 12,087,379 

10

Northwest Bancshares, Inc. and Subsidiaries
Regulatory Capital Requirements (Unaudited)
(dollars in thousands)
 At June 30, 2024
 ActualMinimum capital
requirements (1)		Well capitalized
requirements 
 AmountRatioAmountRatioAmountRatio
Total capital (to risk weighted assets)      
Northwest Bancshares, Inc.$1,784,604 16.674 %$1,123,831 10.500 %$1,070,315 10.000 %
Northwest Bank1,537,783 14.380 %1,122,827 10.500 %1,069,359 10.000 %
Tier 1 capital (to risk weighted assets)    
Northwest Bancshares, Inc.1,536,552 14.356 %909,768 8.500 %856,252 8.000 %
Northwest Bank1,404,095 13.130 %908,955 8.500 %855,487 8.000 %
Common equity tier 1 capital (to risk weighted assets)    
Northwest Bancshares, Inc.1,410,837 13.182 %749,220 7.000 %695,705 6.500 %
Northwest Bank1,404,095 13.130 %748,551 7.000 %695,083 6.500 %
Tier 1 capital (leverage) (to average assets)    
Northwest Bancshares, Inc.1,536,552 10.654 %576,913 4.000 %721,142 5.000 %
Northwest Bank1,404,095 9.742 %576,521 4.000 %720,651 5.000 %
(1) Amounts and ratios include the capital conservation buffer of 2.5%, which does not apply to Tier 1 capital to average assets (leverage ratio). For further information related to the capital conservation buffer, see "Item 1. Business - Supervision and Regulation" of our 2023 Annual Report on Form 10-K.

11

Northwest Bancshares, Inc. and Subsidiaries
Marketable Securities (Unaudited)
(dollars in thousands)
June 30, 2024
Marketable securities available-for-saleAmortized costGross unrealized
holding gains		Gross unrealized
holding losses		Fair valueWeighted average duration
   Debt issued by the U.S. government and agencies:    
Due after ten years$47,263 — (10,292)36,971 6.08 
   Debt issued by government sponsored enterprises:
   Due after one year through five years185 — (5)180 1.19 
   Municipal securities:
Due after one year through five years880 8 (3)885 1.83 
   Due after five years through ten years9,157 5 (1,565)7,597 7.89 
   Due after ten years58,872 13 (8,626)50,259 10.17 
   Corporate debt issues:
   Due after five years through ten years14,373 20 (886)13,507 4.79 
   Due after ten years3,250 — — 3,250 10.04 
   Mortgage-backed agency securities:
   Fixed rate pass-through228,855 83 (16,874)212,064 7.64 
   Variable rate pass-through4,093 24 (13)4,104 3.59 
   Fixed rate agency CMOs789,673 293 (135,258)654,708 4.72 
   Variable rate agency CMOs45,753 38 (125)45,666 7.18 
   Total mortgage-backed agency securities1,068,374 438 (152,270)916,542 5.52 
   Total marketable securities available-for-sale$1,202,354 484 (173,647)1,029,191 5.78 
Marketable securities held-to-maturity
Government sponsored
Due after one year through five years$89,472 — (10,845)78,627 3.66 
Due after five years through ten years34,988 — (5,645)29,343 5.08 
   Mortgage-backed agency securities:    
   Fixed rate pass-through140,245 — (21,704)118,541 4.84 
   Variable rate pass-through414 — (4)410 4.23 
   Fixed rate agency CMOs518,560 — (82,714)435,846 5.85 
   Variable rate agency CMOs529 — (4)525 5.09 
   Total mortgage-backed agency securities659,748 — (104,426)555,322 5.63 
   Total marketable securities held-to-maturity$784,208 — (120,916)663,292 5.38 

12

Northwest Bancshares, Inc. and Subsidiaries
Borrowed Funds (Unaudited)
(dollars in thousands)
June 30, 2024
AmountAverage rate
Term notes payable to the FHLB of Pittsburgh, due within one year$175,000 5.65 %
Collateralized borrowings, due within one year26,213 1.83 %
Collateral received, due within one year 41,150 5.17 %
Subordinated debentures, net of issuance costs114,364 4.28 %
Junior subordinated debentures129,703 7.61 %
      Total borrowed funds *$486,430 5.61 %
*    As of June 30, 2024, the Company had $3.4 billion of additional borrowing capacity available with the FHLB of Pittsburgh, including a $250 million overnight line of credit, which has no balance as of June 30, 2024, as well as $404 million of borrowing capacity available with the Federal Reserve Bank and $105 million with two correspondent banks.

13

Northwest Bancshares, Inc. and Subsidiaries
Analysis of Loan Portfolio by Loan Sector (Unaudited)


Commercial real estate loans outstanding
The following table provides the various loan sectors in our commercial real estate portfolio at June 30, 2024:
Property typePercent of portfolio
5 or more unit dwelling16.8 %
Nursing home12.5 
Retail building11.7 
Commercial office building - non-owner occupied8.9 
Manufacturing & industrial building4.8 
Residential acquisition & development - 1-4 family, townhouses and apartments 4.3 
Multi-use building - commercial, retail and residential4.0 
Warehouse/storage building3.9 
Commercial office building - owner occupied3.9 
Multi-use building - office and warehouse3.0 
Other medical facility3.0 
Single family dwelling2.6 
Student housing2.1 
Hotel/motel2.1 
Agricultural real estate2.0 
All other14.4 
   Total100.0 %

The following table describes the collateral of our commercial real estate portfolio by state at June 30, 2024:
StatePercent of portfolio
New York32.7 %
Pennsylvania29.4 
Ohio20.7 
Indiana9.0 
All other8.2 
   Total100.0 %
14

Northwest Bancshares, Inc. and Subsidiaries
Asset Quality (Unaudited)
(dollars in thousands)
 June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Nonaccrual loans current:     
Residential mortgage loans$1,563 1,351 959 1,951 1,559 
Home equity loans1,088 974 871 947 1,089 
Consumer loans1,268 1,295 1,051 1,049 1,009 
Commercial real estate loans66,181 66,895 64,603 44,639 48,468 
Commercial loans788 934 1,182 1,369 995 
Total nonaccrual loans current$70,888 71,449 68,666 49,955 53,120 
Nonaccrual loans delinquent 30 days to 59 days:   
Residential mortgage loans$100 1,454 933 48 49 
Home equity loans260 125 174 92 37 
Consumer loans305 294 225 274 309 
Commercial real estate loans699 574 51 1,913 1,697 
Commercial loans183 161 139 90 855 
Total nonaccrual loans delinquent 30 days to 59 days$1,547 2,608 1,522 2,417 2,947 
Nonaccrual loans delinquent 60 days to 89 days:     
Residential mortgage loans$578 — 511 66 185 
Home equity loans234 488 347 319 363 
Consumer loans603 381 557 312 360 
Commercial real estate loans2,243 52 831 212 210 
Commercial loans8,088 201 56 291 245 
Total nonaccrual loans delinquent 60 days to 89 days$11,746 1,122 2,302 1,200 1,363 
Nonaccrual loans delinquent 90 days or more:     
Residential mortgage loans$4,162 4,304 6,324 7,695 6,290 
Home equity loans2,473 2,822 3,100 2,073 1,965 
Consumer loans2,433 2,659 3,212 2,463 2,033 
Commercial real estate loans5,849 6,931 6,488 8,416 8,575 
Commercial loans3,061 3,165 2,770 2,435 2,296 
Total nonaccrual loans delinquent 90 days or more$17,978 19,881 21,894 23,082 21,159 
Total nonaccrual loans$102,159 95,060 94,384 76,654 78,589 
Total nonaccrual loans$102,159 95,060 94,384 76,654 78,589 
Loans 90 days past due and still accruing2,511 2,452 2,698 728 532 
Nonperforming loans104,670 97,512 97,082 77,382 79,121 
Real estate owned, net74 50 104 363 371 
Nonperforming assets$104,744 97,562 97,186 77,745 79,492 
Nonperforming loans to total loans0.92 %0.85 %0.85 %0.68 %0.70 %
Nonperforming assets to total assets0.73 %0.67 %0.67 %0.54 %0.56 %
Allowance for credit losses to total loans1.10 %1.09 %1.10 %1.10 %1.10 %
Allowance for credit losses to nonperforming loans119.49 %128.08 %129.01 %161.33 %157.26 %

15

Northwest Bancshares, Inc. and Subsidiaries
Loans by Credit Quality Indicators (Unaudited)
(dollars in thousands)
At June 30, 2024PassSpecial
   mention *		Substandard **DoubtfulLossLoans
receivable
Personal Banking:      
Residential mortgage loans$3,312,368 — 11,700 — — 3,324,068 
Home equity loans1,176,187 — 4,299 — — 1,180,486 
Consumer loans2,074,869 — 5,189 — — 2,080,058 
Total Personal Banking6,563,424 — 21,188 — — 6,584,612 
Commercial Banking:      
Commercial real estate loans2,682,766 130,879 213,993 — — 3,027,638 
Commercial loans1,673,052 47,400 21,662 — — 1,742,114 
Total Commercial Banking4,355,818 178,279 235,655 — — 4,769,752 
Total loans$10,919,242 178,279 256,843 — — 11,354,364 
At March 31, 2024
Personal Banking:      
Residential mortgage loans$3,370,307 — 12,541 — — 3,382,848 
Home equity loans1,191,957 — 4,650 — — 1,196,607 
Consumer loans2,113,050 — 5,317 — — 2,118,367 
Total Personal Banking6,675,314 — 22,508 — — 6,697,822 
Commercial Banking:      
Commercial real estate loans2,714,857 131,247 182,424 — — 3,028,528 
Commercial loans1,698,519 52,461 23,916 — — 1,774,896 
Total Commercial Banking4,413,376 183,708 206,340 — — 4,803,424 
Total loans$11,088,690 183,708 228,848 — — 11,501,246 
At December 31, 2023
Personal Banking:      
Residential mortgage loans$3,413,846 — 14,339 — — 3,428,185 
Home equity loans1,223,097 — 4,761 — — 1,227,858 
Consumer loans2,120,216 — 5,811 — — 2,126,027 
Total Personal Banking6,757,159 — 24,911 — — 6,782,070 
Commercial Banking:
Commercial real estate loans2,670,510 124,116 179,384 — — 2,974,010 
Commercial loans1,637,879 6,678 14,172 — — 1,658,729 
Total Commercial Banking4,308,389 130,794 193,556 — — 4,632,739 
Total loans$11,065,548 130,794 218,467 — — 11,414,809 
At September 30, 2023
Personal Banking:      
Residential mortgage loans$3,459,251 — 13,512 — — 3,472,763 
Home equity loans1,254,985 — 3,780 — — 1,258,765 
Consumer loans2,150,464 — 4,655 — — 2,155,119 
Total Personal Banking6,864,700 — 21,947 — — 6,886,647 
Commercial Banking:
Commercial real estate loans2,632,472 123,935 166,610 — — 2,923,017 
Commercial loans1,476,833 3,690 20,086 — — 1,500,609 
Total Commercial Banking4,109,305 127,625 186,696 — — 4,423,626 
Total loans$10,974,005 127,625 208,643 — — 11,310,273 
At June 30, 2023
Personal Banking:      
Residential mortgage loans$3,483,098 — 12,059 — — 3,495,157 
Home equity loans1,272,363 — 3,699 — — 1,276,062 
Consumer loans2,196,938 — 4,124 — — 2,201,062 
Total Personal Banking6,952,399 — 19,882 — — 6,972,281 
Commercial Banking:
Commercial real estate loans2,649,535 74,170 171,519 — — 2,895,224 
Commercial loans1,377,981 3,040 22,705 — — 1,403,726 
Total Commercial Banking4,027,516 77,210 194,224 — — 4,298,950 
Total loans$10,979,915 77,210 214,106 — — 11,271,231 
*    Includes $2.5 million, $2.4 million, $7.8 million, $6.9 million, and $4.9 million of acquired loans at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.
**    Includes $24.3 million, $27.2 million, $20.3 million, $28.9 million, and $31.2 million of acquired loans at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.
16

Northwest Bancshares, Inc. and Subsidiaries
Loan Delinquency (Unaudited)
(dollars in thousands)
June 30,
2024		*March 31,
2024		*December 31,
2023		*September 30,
2023		*June 30,
2023		*
(Number of loans and dollar amount of loans)               
Loans delinquent 30 days to 59 days:  
Residential mortgage loans12 $616 — %351 $38,502 1.1 %307 $30,041 0.9 %6 $573 — %14 $627 — %
Home equity loans104 3,771 0.3 %113 4,608 0.4 %121 5,761 0.5 %112 4,707 0.4 %92 3,395 0.3 %
Consumer loans742 10,372 0.5 %737 9,911 0.5 %896 11,211 0.5 %733 9,874 0.5 %602 7,955 0.4 %
Commercial real estate loans21 4,310 0.1 %25 6,396 0.2 %23 3,204 0.1 %22 3,411 0.1 %13 2,710 0.1 %
Commercial loans59 4,366 0.3 %62 3,091 0.2 %59 4,196 0.3 %52 2,847 0.2 %38 15,658 1.1 %
Total loans delinquent 30 days to 59 days938 $23,435 0.2 %1,288 $62,508 0.5 %1,406 $54,413 0.5 %925 $21,412 0.2 %759 $30,345 0.3 %
Loans delinquent 60 days to 89 days:             
Residential mortgage loans70 $8,223 0.2 %3 $70 — %69 $7,796 0.2 %56 $5,395 0.2 %52 $3,521 0.1 %
Home equity loans35 1,065 0.1 %26 761 0.1 %37 982 0.1 %40 1,341 0.1 %31 1,614 0.1 %
Consumer loans295 3,198 0.2 %231 2,545 0.1 %322 3,754 0.2 %236 2,707 0.1 %250 2,584 0.1 %
Commercial real estate loans9 3,155 0.1 %5 807 — %9 1,031 — %13 1,588 0.1 %12 1,288 — %
Commercial loans22 8,732 0.5 %27 1,284 0.1 %16 703 — %15 981 0.1 %23 11,092 0.8 %
Total loans delinquent 60 days to 89 days431 $24,373 0.2 %292 $5,467 — %453 $14,266 0.1 %360 $12,012 0.1 %368 $20,099 0.2 %
Loans delinquent 90 days or more: **               
Residential mortgage loans53 $5,553 0.2 %50 $5,813 0.2 %70 $7,995 0.2 %79 $7,695 0.2 %63 $6,290 0.2 %
Home equity loans51 2,506 0.2 %71 2,823 0.2 %81 3,126 0.3 %73 2,206 0.2 %68 1,965 0.2 %
Consumer loans358 3,012 0.1 %398 3,345 0.2 %440 3,978 0.2 %357 3,020 0.1 %314 2,447 0.1 %
Commercial real estate loans19 6,034 0.2 %22 6,931 0.2 %27 6,712 0.2 %27 8,416 0.3 %20 8,575 0.3 %
Commercial loans72 3,385 0.2 %62 3,421 0.2 %53 2,780 0.2 %39 2,472 0.2 %38 2,414 0.2 %
Total loans delinquent 90 days or more553 $20,490 0.2 %603 $22,333 0.2 %671 $24,591 0.2 %575 $23,809 0.2 %503 $21,691 0.2 %
Total loans delinquent1,922 $68,298 0.6 %2,183 $90,308 0.8 %2,530 $93,270 0.8 %1,860 $57,233 0.5 %1,630 $72,135 0.6 %
*    Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
**    Includes purchased credit deteriorated loans of $82,000, $446,000, $646,000, $1.4 million, and $605,000 at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.

17

Northwest Bancshares, Inc. and Subsidiaries
Allowance for Credit Losses (Unaudited)
(dollars in thousands)
Quarter ended
 June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Beginning balance$124,897 125,243 124,841 124,423 121,257 
Provision2,169 4,234 3,801 3,983 6,010 
Charge-offs residential mortgage(252)(162)(266)(171)(545)
Charge-offs home equity(237)(412)(133)(320)(235)
Charge-offs consumer(2,561)(4,573)(3,860)(3,085)(2,772)
Charge-offs commercial real estate(500)(349)(742)(484)(483)
Charge-offs commercial(1,319)(1,163)(806)(1,286)(1,209)
Recoveries2,873 2,079 2,408 1,781 2,400 
Ending balance$125,070 124,897 125,243 124,841 124,423 
Net charge-offs to average loans, annualized0.07 %0.16 %0.12 %0.13 %0.10 %


Six months ended June 30,
20242023
Beginning balance$125,243 118,036 
ASU 2022-02 Adoption— 426 
Provision6,403 10,880 
Charge-offs residential mortgage(414)(752)
Charge-offs home equity(649)(399)
Charge-offs consumer(7,134)(5,506)
Charge-offs commercial real estate(849)(1,140)
Charge-offs commercial(2,482)(2,074)
Recoveries4,952 4,952 
Ending balance$125,070 124,423 
Net charge-offs to average loans, annualized0.12 %0.09 %
18

Northwest Bancshares, Inc. and Subsidiaries
Average Balance Sheet (Unaudited)
(dollars in thousands) 
The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
 Quarter ended 
June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
Average
balance		InterestAvg. yield/ cost (h)Average
balance		InterestAvg.
yield/
cost (h)		Average
balance		InterestAvg.
yield/
cost (h)		Average
balance		InterestAvg.
yield/
cost (h)		Average
balance		InterestAvg.
yield/
cost (h)
Assets:              
Interest-earning assets:              
Residential mortgage loans$3,342,749 32,182 3.85 %$3,392,524 32,674 3.85 %$3,442,308 32,739 3.80 %$3,476,446 32,596 3.75 %$3,485,517 32,485 3.73 %
Home equity loans1,183,497 17,303 5.88 %1,205,273 17,294 5.77 %1,238,420 17,590 5.64 %1,264,134 17,435 5.47 %1,273,298 16,898 5.32 %
Consumer loans2,048,396 26,334 5.17 %2,033,620 25,033 4.95 %2,055,783 24,667 4.76 %2,092,023 23,521 4.46 %2,143,804 22,662 4.24 %
Commercial real estate loans3,023,762 45,658 5.97 %2,999,224 43,425 5.73 %2,950,589 43,337 5.75 %2,911,145 41,611 5.59 %2,836,443 38,426 5.36 %
Commercial loans1,770,345 33,229 7.43 %1,714,667 31,857 7.35 %1,564,617 28,801 7.20 %1,447,211 26,239 7.09 %1,326,598 22,872 6.82 %
Total loans receivable (a) (b) (d)11,368,749 154,706 5.47 %11,345,308 150,283 5.33 %11,251,717 147,134 5.19 %11,190,959 141,402 5.01 %11,065,660 133,343 4.83 %
Mortgage-backed securities (c)1,734,085 9,426 2.17 %1,717,306 7,944 1.85 %1,741,687 7,951 1.83 %1,781,010 8,072 1.81 %1,859,427 8,326 1.79 %
Investment securities (c) (d)287,262 1,316 1.83 %333,752 1,430 1.71 %335,121 1,425 1.70 %336,125 1,431 1.70 %374,560 1,715 1.83 %
FHLB stock, at cost25,544 498 7.84 %32,249 607 7.57 %35,082 665 7.52 %37,722 668 7.03 %45,505 844 7.44 %
Other interest-earning deposits135,520 1,791 5.23 %61,666 832 5.34 %71,987 970 5.27 %67,143 915 5.33 %46,536 594 5.05 %
Total interest-earning assets13,551,160 167,737 4.98 %13,490,281 161,096 4.80 %13,435,594 158,145 4.67 %13,412,959 152,488 4.51 %13,391,688 144,822 4.34 %
Noninterest-earning assets (e)907,432 918,331 893,426 966,364 854,229 
Total assets$14,458,592   $14,408,612 $14,329,020 $14,379,323 $14,245,917 
Liabilities and shareholders’ equity:            
Interest-bearing liabilities:               
Savings deposits (g)$2,144,278 5,957 1.12 %$2,122,035 5,036 0.95 %$2,102,320 4,045 0.76 %$2,116,759 2,695 0.51 %$2,142,941 1,393 0.26 %
Interest-bearing demand deposits (g)2,555,863 6,646 1.05 %2,538,823 5,402 0.86 %2,573,634 4,921 0.76 %2,569,229 4,086 0.63 %2,469,666 1,648 0.27 %
Money market deposit accounts (g)1,957,990 8,601 1.77 %1,961,332 7,913 1.62 %1,997,116 7,446 1.48 %2,112,228 6,772 1.27 %2,221,713 6,113 1.10 %
Time deposits (g)2,832,720 31,550 4.48 %2,697,983 29,335 4.37 %2,447,335 24,187 3.92 %2,164,559 18,136 3.32 %1,765,454 12,663 2.88 %
Borrowed funds (f)323,191 3,662 4.56 %469,697 5,708 4.89 %548,089 6,826 4.94 %643,518 7,937 4.89 %837,358 10,202 4.89 %
Subordinated debt114,308 1,148 4.02 %114,225 1,148 4.02 %114,134 1,148 4.02 %114,045 1,148 4.03 %113,958 1,148 4.03 %
Junior subordinated debentures129,663 2,449 7.47 %129,597 2,459 7.51 %129,532 2,512 7.59 %129,466 2,456 7.42 %129,401 2,280 6.97 %
Total interest-bearing liabilities10,058,013 60,013 2.40 %10,033,692 57,001 2.28 %9,912,160 51,085 2.04 %9,849,804 43,230 1.74 %9,680,491 35,447 1.47 %
Noninterest-bearing demand deposits (g)2,595,511 2,567,781 2,675,788 2,757,091 2,820,928 
Noninterest-bearing liabilities263,634 257,269 234,177 257,141 224,508 
Total liabilities12,917,158   12,858,742 12,822,125 12,864,036 12,725,927   
Shareholders’ equity1,541,434 1,549,870 1,506,895 1,515,287 1,519,990 
Total liabilities and shareholders’ equity$14,458,592   $14,408,612 $14,329,020 $14,379,323 $14,245,917   
Net interest income/Interest rate spread 107,724 2.58 %104,095 2.52 %107,060 2.63 %109,258 2.77 %109,375 2.87 %
Net interest-earning assets/Net interest margin$3,493,147  3.20 %$3,456,589 3.10 %$3,523,434 3.16 %$3,563,155 3.23 %$3,711,197 3.28 %
Ratio of interest-earning assets to interest-bearing liabilities1.35X  1.34X1.36X1.36X1.38X
(a)    Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
(b)    Interest income includes accretion/amortization of deferred loan fees/expenses, which was not material.
(c)    Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
(d)    Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent (“FTE”) basis.
(e)     Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
(f)    Average balances include FHLB borrowings and collateralized borrowings.
(g)    Average cost of deposits were 1.76%, 1.61%, 1.37%, 1.07%, and 0.77%, respectively, and average cost of Interest-bearing deposits were 2.24%, 2.06%, 1.77%, 1.40%, and 1.02%, respectively.
(h)    Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans — 5.45%, 5.30%, 5.17%, 4.99%, and 4.81%, respectively, Investment securities — 1.65%, 1.54%, 1.52%, 1.52%, and 1.61%, respectively, Interest-earning assets — 4.95%, 4.78%, 4.65%, 4.48%, and 4.31%, respectively. GAAP basis net interest rate spreads were 2.55%, 2.49%, 2.60%, 2.74%, and 2.84%, respectively, and GAAP basis net interest margins were 3.17%, 3.08%, 3.14%, 3.21%, and 3.25%, respectively.
19

Northwest Bancshares, Inc. and Subsidiaries
Average Balance Sheet (Unaudited)
(in thousands)
 
The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
 Six months ended June 30,
 20242023
Average
balance		InterestAvg.
yield/
cost (h)		Average
balance		InterestAvg.
yield/
cost (h)
Assets      
Interest-earning assets:      
Residential mortgage loans$3,367,636 64,855 3.85 %$3,489,545 64,494 3.70 %
Home equity loans1,194,385 34,596 5.83 %1,278,831 33,033 5.21 %
Consumer loans2,041,008 51,367 5.06 %2,133,794 43,457 4.11 %
Commercial real estate loans3,011,493 89,066 5.85 %2,830,316 75,463 5.30 %
Commercial loans1,742,506 65,083 7.39 %1,244,404 41,225 6.59 %
Loans receivable (a) (b) (d)11,357,028 304,967 5.40 %10,976,890 257,672 4.73 %
Mortgage-backed securities (c)1,725,696 17,370 2.01 %1,884,412 16,863 1.79 %
Investment securities (c) (d)310,507 2,742 1.77 %379,611 3,478 1.83 %
FHLB stock, at cost28,897 1,105 7.69 %42,584 1,534 7.26 %
Other interest-earning deposits99,252 2,623 5.23 %42,431 1,017 4.77 %
Total interest-earning assets13,521,380 328,807 4.89 %13,325,928 280,564 4.25 %
Noninterest-earning assets (e)912,222 858,122  
Total assets$14,433,602   $14,184,050   
Liabilities and shareholders’ equity      
Interest-bearing liabilities:     
Savings deposits (g)$2,133,157 10,993 1.04 %$2,187,355 2,082 0.19 %
Interest-bearing demand deposits (g)2,547,343 12,048 0.95 %2,540,879 2,599 0.21 %
Money market deposit accounts (g)1,959,661 16,514 1.69 %2,314,631 10,516 0.92 %
Time deposits (g)2,765,351 60,885 4.43 %1,514,289 17,858 2.38 %
Borrowed funds (f)396,444 9,370 4.75 %789,057 18,139 4.64 %
Subordinated debt114,267 2,296 4.02 %113,914 2,296 4.03 %
Junior subordinated debentures129,630 4,908 7.49 %129,368 4,433 6.82 %
Total interest-bearing liabilities10,045,853 117,014 2.34 %9,589,493 57,923 1.22 %
Noninterest-bearing demand deposits (g)2,581,646 2,855,260  
Noninterest-bearing liabilities260,452 229,831  
Total liabilities12,887,951   12,674,584   
Shareholders’ equity1,545,651 1,509,466   
Total liabilities and shareholders’ equity$14,433,602   $14,184,050   
Net interest income/Interest rate spread 211,793 2.55 % 222,641 3.03 %
Net interest-earning assets/Net interest margin$3,475,527  3.15 %$3,736,435  3.37 %
Ratio of interest-earning assets to interest-bearing liabilities1.35X  1.39X  
(a)Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
(b)Interest income includes accretion/amortization of deferred loan fees/expenses, which were not material.
(c)Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
(d)Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent (“FTE”) basis.
(e)Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
(f)Average balances include FHLB borrowings and collateralized borrowings.
(g)Average cost of deposits were 1.69% and 0.58%, respectively and average cost of Interest-bearing deposits were 2.15% and 0.78%, respectively.
(h)Shown on a FTE basis. GAAP basis yields were: Loans — 5.37% and 4.71%, respectively; Investment securities — 1.59% and 1.61%, respectively; Interest-earning assets — 4.86% and 4.22%, respectively. GAAP basis net interest rate spreads were 2.52% and 3.00%, respectively; and GAAP basis net interest margins were 3.12% and 3.34%, respectively.
20
Second Quarter 2024 Earnings Conference Call July 23, 2024 Louis J. Torchio President and Chief Executive Officer Douglas M. Schosser Chief Financial Officer T.K. Creal Chief Credit Officer Jeffrey J. Maddigan Treasurer and Investor Relations

 
Forward-looking Statements and Additional Information The information contained in this presentation may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words “believe,” “anticipate,” “estimate,” “expect,” “project,” “target,” “goal” and similar expressions are intended to identify forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements include but are not limited to: statements of our goals, intentions and expectations; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward- looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward- looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to the following: inflation and changes in the interest rate environment that reduce our margins, our loan origination, or the fair value of financial instruments; changes in asset quality, including increases in default rates on loans and higher levels of nonperforming loans and loan charge-offs generally; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; changes in federal, state, or local tax laws and tax rates; general economic conditions, either nationally or in our market areas, that are different than expected, including inflationary or recessionary pressures; adverse changes in the securities and credit markets; cyber-security concerns, including an interruption or breach in the security of our website or other information systems; technological changes that may be more difficult or expensive than expected; changes in liquidity, including the size and composition of our deposit portfolio, and the percentage of uninsured deposits in the portfolio; the ability of third-party providers to perform their obligations to us; competition among depository and other financial institutions, including with respect to deposit gathering, service charges and fees; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to manage our internal growth and our ability to successfully integrate acquired entities, businesses or branch offices; changes in consumer spending, borrowing and savings habits; our ability to continue to increase and manage our commercial and personal loans; possible impairments of securities held by us, including those issued by government entities and government sponsored enterprises; changes in the value of our goodwill or other intangible assets; the impact of the economy on our loan portfolio (including cash flow and collateral values), investment portfolio, customers and capital market activities; our ability to receive regulatory approvals for proposed transactions or new lines of business; the effects of any federal government shutdown or the inability of the federal government to manage debt limits; changes in the financial performance and/or condition of our borrowers; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Securities and Exchange Commission, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (“FASB”) and other accounting standard setters; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the effect of global or national war, conflict, or terrorism; our ability to manage market risk, credit risk and operational risk; the disruption to local, regional, national and global economic activity caused by infectious disease outbreaks, and the significant impact that any such outbreaks may have on our growth, operations and earnings; the effects of natural disasters and extreme weather events; changes in our ability to continue to pay dividends, either at current rates or at all; our ability to retain key employees; and our compensation expense associated with equity allocated or awarded to our employees. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, expected or projected. These and other risk factors are more fully described in this presentation and in the Northwest Bancshares, Inc. (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2023 under the section entitled "Item 1A - Risk Factors," and from time to time in other filings made by the Company with the SEC. These forward-looking statements speak only at the date of the presentation. The Company expressly disclaims any obligation to publicly release any updates or revisions to reflect any change in the Company’s expectations with regard to any change in events, conditions or circumstances on which any such statement is based. Use of Non-GAAP Financial Measures This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company’s performance. Management believes these non-GAAP financial measures allow for better comparability of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. 2

 
3 FOUNDED 1896 TOTAL ASSETS $14.4B TOTAL DEPOSITS $12.1B TOTAL LOANS $11.4B FINANCIAL CENTERS 131 ROAA 0.13% 0.96%(1) ROAE 1.24% 9.00%(1) NIM 3.20% Northwest Bancshares At-A-Glance Diluted EPS $0.04 $0.27(1) (1) Q2 2024 Non-GAAP financial measure; See "Use of non-GAAP Financial Measures” and Non-GAAP reconciliations herein. For the quarter ended June 30, 2024

 
2Q 2024 Highlights: Balance Sheet Management results in Solid Performance 4 Balance Sheet Net Interest Margin Noninterest Income Noninterest Expense Credit Quality • Repositioned through sale of securities hitting announced metrics • Loan growth muted with focus on re-mixing portfolio and profitable growth • Average deposits up 2% allowing for 21% reduction in borrowings • Improved 10 bps due to securities restructure and favorable funding mix • Net interest income increased $3.6 million (+3.6%) QoQ • Loss of $8.8 million inclusive of a $39.4 million loss (or $0.22 EPS) on the sale of investment securities. • Excluding realized loss, 9% increase QoQ led by SBA sale gains up 67% • 3% increase driven by rise in personnel costs • Partially offset by decreasing non-personnel expenses • Includes $1.9 million pre-tax restructuring charges or $0.01 EPS • Non-performing assets remains well controlled • Overall ALLL coverage of 1.10% and $2.2 million provision expense for loan losses

 
Treasury / Agency, … Municipal, 3% Agency MBS, 19% Agency CMO, 68% Corporate, 1% Securities Portfolio 5 Modified Duration Available for sale Percent of total assets AOCI 2Q24 5.5 Years 61% 13% -$133 Million 1Q24 5.8 Years 62% 13% -$156 Million • Achieved previously announced securities portfolio restructure metrics • Sold $314 million par value (15% of portfolio) at loss of $39.4 million pre-tax with a book yield of 1.79%, providing proceeds of $276 million • To date, $258 million has been re-invested into AFS at a yield of 6.00%, expected yield on fully re-invested funds is 6.17% • Yield pickup over 420 bps providing payback period of approximately 3 years Summary Comments 1.96% 2.45% Securities Book Yield Securities Portfolio quarter-over-quarter change Securities Portfolio $ m ill io ns Amortized Cost

 
Loan Balances 6 2Q24 vs. 1Q24 2Q24 vs. 2Q23 Average balances ($ Millions) 2Q24 Change $ Change % Change $ Change % Residential mortgage 3,343 -50 -1.5% -143 -4.1% Home equity 1,184 -21 -1.7% -89 -7.0% Consumer 2,048 15 -.07% -96 -4.5% Commercial real estate 3,024 25 0.8% 188 6.6% Commercial 1,770 55 3.2% 443 33.4% Total Loans 11,369 24 0.2% 303 2.7% Change in Loan Mix • Average loans increased 0.2% QoQ as portfolio mix continued to become more commercial weighted • Company focused on profitable growth to drive margin expansion • Average commercial loans increased $55 million compared to 1Q24, or 3.2% despite some significant payoffs • Commercial growth funded through declines in residential and home equity portfolios down, 1.5% and 1.7%, respectively Summary Comments Loan Mix Change Loans grew $24MM or 0.2% +3% +1% $ m ill io ns $ bi lli on s Combined Loan Average Balances 6.90 6.83 6.74 6.63 6.57 4.16 4.36 4.52 4.71 4.79 11.07 11.19 11.25 11.35 11.37 4.83% 5.01% 5.19% 5.33% 5.47% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% - 2.00 4.00 6.00 8.00 10.00 12.00 2Q23 3Q23 4Q23 1Q24 2Q24 Personal Banking Loans Commercial Banking Loans Loan Yield

 
Deposit Balances 7 2Q24 vs. 1Q24 2Q24 vs. 2Q23 Average balances ($ Millions) 2Q24 Change $ Change % Change $ Change % Demand 2,596 28 1.1% -225 -8.0% Interest-bearing Demand 2,556 17 0.7% 86 3.5% Money Market 1,958 -3 -0.2% -264 -11.9% Savings 2,144 22 1.0% 1 0.0% Time 2,833 135 4.8% 1,067 60.4% Total Deposits 12,086 199 1.6% 665 5.8% Change in Deposit Mix Deposit Growth and Cost of Deposits • Deposit balances remained strong as average total deposits grew 1.6% QoQ and 5.8% versus 2Q23 • The pace of volumes into higher-cost CDs and high-yield savings products beginning to slow • Cost of deposits increased 15 bps QoQ, the lowest in the past six quarters Summary Comments Deposit Mix Change $ m ill io ns $ m ill io ns 7,434 7,443 7,352 7,229 7,296 3,987 4,277 4,444 4,659 4,791 11,421 11,720 11,796 11,888 12,086 0.77% 1.07% 1.37% 1.61% 1.76% (1,000) 1,000 3,000 5,000 7,000 9,000 11,000 13,000 15,000 2Q23 3Q23 4Q23 1Q24 2Q24 Demand and Savings Time and Money Market Cost of Deposits

 
8,600 8,963 9,120 9,320 9,491 1,081 887 792 714 567 1.47 1.74 2.04 2.28 2.40 7,500 8,000 8,500 9,000 9,500 10,000 10,500 - 1.00 2.00 3.00 4.00 5.00 6.00 2Q23 3Q23 4Q23 1Q24 2Q24 Interest Bearing Deposits Borrowings Cost of Funds % 109.4 109.3 107.1 104.1 107.7 3.28 3.23 3.16 3.10 3.20 2.95 3.15 3.35 3.55 3.75 100.0 102.0 104.0 106.0 108.0 110.0 2Q23 3Q23 4Q23 1Q24 2Q24 Net Intererst Income NIM% Net Interest Income and NIM Trends $ m ill io ns Net Interest Margin 8 • Net interest income increased 3% with NIM expanding to 3.20% from 3.10% in the previous quarter • Increased loan yields from growth and repricing, as well as benefits from the securities restructure offset higher deposit costs • Average borrowing balances decreased $146 million QoQ or 21%, helping to keep the cost of funds low $ m ill io ns Summary Comments Bp s Drivers of Net Interest Margin Change $104 ($5) $2 $2 $4 $108 Net Interest Income ($MM) Cost of Funds

 
Non-Interest Income 9 • Loss of $8.8 million inclusive of a $39.4 million loss on the sale of investment securities. • Excluding loss from sale of securities, non-interest income increased $2.6 million QoQ, or 9% • Gain on sale of SBA loans accelerating and grew by 67% compared to the previous quarter Summary Comments Non-interest Income Trend $ m ill io ns $ in thousands 2Q24 vs. 1Q24 2Q24 vs. 2Q23 Non-interest Income 2Q24 Change $ Change % Change $ Change % Service charges and fees 15,527 4 0.0% 694 4.7% Trust and other financial services 7,566 439 6.2% 700 10.2% Other operating income 3,255 826 34.0% (895) -21.6% Gain on sale loans 1,457 584 66.9% 625 75.1% Bank-owned life insurance 1,371 (131) -8.7% 67 5.1% Mortgage banking income 901 449 99.3% (127) -12.4% Gain on real estate owned, net 487 430 754.4% (298) -38.0% Gain / (Loss) on Sale MSR - - 0.0% (8,305) -100.0% Gain / (Loss) on Sale Investments (39,413) (39,413) 0.0% (31,107) 374.5% Total Non-interest Income (8,849) (36,812) -131.6% (38,646) -129.7% Total Noninterest Income - Adjusted* 30,564 2,601 9.3% 766 2.6% * Excludes Gain / (Loss) on Sale MSR and Gain / (Loss) on Sale Investments 29.80 30.89 29.17 27.96 (8.85) 29.80 30.89 29.17 27.96 30.56 2Q23 3Q23 4Q23 1Q24 2Q24 Total Non-interest income Total Non-interest income - adjusted*

 
47.7 51.2 50.2 51.5 53.5 36.6 36.3 38.1 37.5 37.0 1.6 - 2.4 1.0 1.9 85.9 87.6 90.7 90.0 92.4 60.3% 62.3% 64.7% 67.4% 65.4% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 95.0% 100.0% - 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 2Q23 3Q23 4Q23 1Q24 2Q24 Personnel Non-personnel Restructuring Efficiency Ratio* Non-Interest Expense 10 • Compensation and benefits growth attributed to annual merit increase and additional temporary contracted employees and increased incentive compensation • Professional services reduced and replaced with internal solutions • Office operations increase reflects increase in fraud losses Summary Comments Expense Mix and Efficiency Trend $ m ill io ns * Non-GAAP financial measure; See "Use of non-GAAP Financial Measures” and Non-GAAP reconciliations herein. $ in thousands 2Q24 vs. 1Q24 2Q24 vs 2Q23 Non-interest Expense 2Q24 Change $ Change % Change $ Change % Compensation and employee benefits 53,531 1,991 3.9% 5,881 12.3% Processing expenses 14,695 (30) -0.2% 47 0.3% Premises and occupancy costs 7,464 (163) -2.1% (115) -1.5% Office operations 3,819 1,052 38.0% 1,019 36.4% Professional services 3,728 (337) -8.3% (76) -2.0% Federal deposit insurance premiums 2,865 (158) -5.2% 801 38.8% Marketing expenses 2,410 261 12.1% (446) -15.6% Merger, asset disposition and restructuring expense 1,915 960 100.5% 322 20.2% Other 1,993 (1,180) -37.2% (871) -30.4% Total Non-interest Expense 92,420 2,396 2.7% 6,562 7.6% 2Q23 3Q23 4Q23 1Q24 2Q24 Efficiency Ratio 62.1% 62.9% 66.9% 68.6% 94.3% Efficiency Ratio* 60.3% 62.3% 64.7% 67.4% 65.4%

 
6.0 4.0 3.8 4.2 2.2 0.10% 0.13% 0.12% 0.16% 0.07% 0.00% 0.10% 0.20% 0.30% 0.40% (0.5) 0.5 1.5 2.5 3.5 4.5 5.5 6.5 2Q23 3Q23 4Q23 1Q24 2Q24 Provision for Credit Losses - Loans Net Charge-offs to Average Loans 11,271 11,310 11,415 11,501 11,354 1.10% 1.10% 1.10% 1.09% 1.10% 1.00% 1.05% 1.10% 1.15% 1.20% 1.25% 1.30% 11,050 11,150 11,250 11,350 11,450 11,550 2Q23 3Q23 4Q23 1Q24 2Q24 Loan Balances Allowance to Loans Allowance for Credit Losses 11 $ m ill io ns • Overall ALLL coverage remains strong at 1.10% • Net charge-offs of 7 bps reflects increased recoveries in the quarter • $2.2 million provision expensed for loan losses based on CECL modeling Summary Comments Allowance Quarter-over-Quarter Change Total Loans and Allowance $ m ill io ns Net Charge-offs and Provision $ m ill io ns 1.10% 1.09% Allowance to Loans

 
72.1 57.2 93.3 90.3 68.3 0.64% 0.50% 0.79% 0.76% 0.59% -0.10% 0.40% 0.90% 1.40% - 20.0 40.0 60.0 80.0 100.0 2Q23 3Q23 4Q23 1Q24 2Q24 Delinquent Loans Delinquency Percentage 79 78 97 98 105 0.56% 0.54% 0.67% 0.67% 0.73% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% - 20 40 60 80 100 120 2Q23 3Q23 4Q23 1Q24 2Q24 Nonperforming Assets Percent of Total Assets Credit Quality 12 $ m ill io ns • Disciplined underwriting focus has resulted in credit risk metrics to remain steady and below pre-pandemic as well as national levels • The uptick this quarter in non-performing assets was primarily a result of one commercial credit • Change in classified assets is reflective of the health care exposure Summary Comments Non-Performing Assets Loan Delinquency $ m ill io ns Classified Assets $ m ill io ns 234.4 221.7 226.6 250.7 283.8 1.64% 1.54% 1.57% 1.73% 1.97% 0.00% 1.00% 2.00% 3.00% 4.00% 0.0 50.0 100.0 150.0 200.0 250.0 300.0 2Q23 3Q23 4Q23 1Q24 2Q24 Classified Assets Classified Assets to Total Assets

 
Commercial Concentration 13 $ m ill io ns • Diverse portfolio has allowed Northwest to avoid material industry issues; Immaterial large metro office or rent controlled multi- family concentrations • Health care sector credit metrics appear to be leveling off • Maturity and interest rate rollover risk is not significant Summary Comments Criticized – Classified Commitments by Property Type Commercial Commitments By Industry

 
Balance Sheet Overview 14 2Q24 vs. 1Q24 2Q24 vs. 2Q23 Average balances ($ thousands) 2Q24 Change $ Change % Change $ Change % Total loans 11,368,749 23,441 0% 303,089 3% Investment securities 2,021,347 (29,711) -1% (212.640) -10% Other interest earning assets 159,769 65,854 70% 75,352 89% Deposits 12,086,362 198,408 2% 665,660 6% Borrowed funds and Junior sub-debt 567,162 (146,357) -21% (513,555) -48% Common shareholders’ equity 1,541,434 (8,436) -1% 21,444 1% Period end 2Q24 1Q24 vs. 1Q24 2Q23 Vs. 2Q23 CET1 capital ratio 13.18% 13.19% (1 bp) 13.45% (27 bps) Tangible Common Equity to Tangible Assets 8.37% 8.26% 11 bps 8.08% 29 bps Tangible book value per common share (non-GAAP) $9.20 $9.17 $0.03 $08.84 $0.36

 
2024 Outlook 15 $ in Millions 1Q24 2Q24 2H24 Guidance Average Loans 11,345 11,369 Profitability and credit discipline keeps growth in low single digits per quarter Average Deposits 11,888 12,086 Stable deposit balances expected through managed cost Net Interest Margin 3.10% 3.20% Modest margin expansion per quarter with full impact of restructuring in Q3 Non-interest Income 28.0 -8.4 Low single digit growth off adjusted base per quarter Non-interest Expense 90.0 92.4 Low single digit growth off adjusted base per quarter Effective Tax Rate 22.7% 20.1% Tax rate normalizes back near Q1 Net charge-offs 0.16% 0.07% Normalize closer to Q1 (within normal range of 15-20 bps through the cycle) Note: Low single digits is 0 – 2%

 
Non-GAAP Reconciliation 16 Dollars in thousands, except per share amounts * The table summarizes the Company’s results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude merger, asset disposition and restructuring expense, loss on sale of investments and gain on sale of mortgage servicing rights. The net tax effect was calculated using statutory tax rates of approximately 28.0%. The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.

 
Non-GAAP Reconciliation - Continued 17 Dollars in thousands * The table summarizes the Company’s results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude merger, asset disposition and restructuring expense, loss on sale of investments and gain on sale of mortgage servicing rights. The net tax effect was calculated using statutory tax rates of approximately 28.0%. The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.

 
Second Quarter 2024 Earnings Conference Call July 23, 2024 Louis J. Torchio President and Chief Executive Officer Douglas M. Schosser Chief Financial Officer T.K. Creal Chief Credit Officer Jeffrey J. Maddigan Treasurer and Investor Relations

 
v3.24.2
Cover Page Document
Jul. 23, 2024
Cover page. [Abstract]  
Document Type 8-K
Entity Registrant Name Northwest Bancshares, Inc.
Entity Incorporation, State or Country Code MD
Entity File Number 001-34582
Entity Tax Identification Number 27-0950358
Entity Address, Address Line One 3 Easton Oval Suite 500
Entity Address, City or Town Columbus
Entity Address, State or Province OH
Entity Address, Postal Zip Code 43219
City Area Code 814
Local Phone Number 726-2140
Title of 12(b) Security Common Stock, 0.01 Par Value
Trading Symbol NWBI
Security Exchange Name NASDAQ
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001471265
Amendment Flag false
Document Period End Date Jul. 23, 2024
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