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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):  October 29, 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 October 29, 2024, Northwest Bancshares, Inc. issued a press release announcing its financial results for the three and nine month period ended September 30, 2024 (the "Press Release"), and posted on its website its third 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 October 29, 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:October 29, 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 Third Quarter 2024 net income of $34 million,
or $0.26 per diluted share

Net interest margin expands 13 basis points to 3.33%, inclusive of 4bps from an interest recovery
Average deposits grew $10 million while cost of funds remained stable
Noninterest expense declines $2 million due to disciplined expense management
120th consecutive quarterly dividend of $0.20 per share declared
 
Columbus, Ohio — October 29, 2024
 
Northwest Bancshares, Inc., (the “Company”), (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2024 of $34 million, or $0.26 per diluted share. This represents a decrease of $5 million compared to the same quarter last year, when net income was $39 million, or $0.31 per diluted share, and an increase of $29 million compared to the prior quarter, when net income was $5 million, or $0.04 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended September 30, 2024 were 8.50% and 0.93% compared to 10.27% and 1.08% for the same quarter last year and 1.24% and 0.13% from the prior quarter.

Compared to adjusted net operating income (non-GAAP) of $35 million, or $0.27, per diluted share in the prior quarter, adjusted net operating income (non-GAAP) decreased by $1 million to $34 million, or $0.26, per diluted share for the quarter ended September 30, 2024. This decrease was driven by an increase in provision expense which was $5 million for the quarter ended September 30, 2024 compared to $(0.4) million for the quarter ended June 30, 2024. The adjusted annualized returns on average shareholders’ equity (non-GAAP) and average assets (non-GAAP) for the quarter ended September 30, 2024 were 8.51% and 0.93% compared to 9.00% and 0.96% for prior quarter.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on November 18, 2024 to shareholders of record as of November 8, 2024. This is the 120th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company’s common stock as of September 30, 2024, this represents an annualized dividend yield of approximately 6.0%.

Louis J. Torchio, President and CEO, added, “Our performance this quarter demonstrates the strength and resilience of our business model. We’ve delivered solid results that underscore our expanding earnings power, driven in large part by improvements in our net interest margin. This positive trajectory reflects our team’s dedication to operational excellence and strategic growth initiatives.”

“As we look ahead, we remain committed to creating long-term value for our shareholders. I’m pleased to announce that for the 120th consecutive quarter, we will be returning our earnings to our shareholders through a $0.20 per share dividend. This consistency in shareholder returns is a testament to our financial stability, performance and our unwavering focus on delivering sustainable growth. We enter the next quarter with confidence, buoyed by our strong performance and the ongoing optimization of our business operations. Our team remains focused on capitalizing on market opportunities while maintaining prudent risk management practices. Northwest is well-positioned to continue driving value for our shareholders, clients and communities in the quarters to come.”






1

Balance Sheet Highlights

Dollars in thousandsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Average loans receivable$11,223,602 11,368,749 11,190,959 (1.3)%0.3 %
Average investments1,998,855 2,021,347 2,117,135 (1.1)%(5.6)%
Average deposits12,096,811 12,086,362 11,719,866 0.1 %3.2 %
Average borrowed funds220,677 323,191 643,518 (31.7)%(65.7)%

•Average loans receivable increased $33 million from the quarter ended September 30, 2023 driven by our commercial banking portfolio, which grew by $456 million in total, including a $372 million increase in our commercial and industrial portfolio as we have continued to build-out our commercial lending verticals. This was offset by a decline in our personal banking portfolio, which decreased by $423 million as cash flows from this portfolio were reinvested in our commercial portfolios. Compared to the second quarter of 2024, average loans receivable decreased by $145 million. Growth was muted in the quarter as we continue to reinvest cash flows from our personal banking portfolio and focus on profitability and credit discipline.
•Average investments declined $118 million from the quarter ended September 30, 2023 and $22 million from the quarter ended June 30, 2024. The decline from the prior year was driven by the investment portfolio restructure which occurred in the second quarter and from lack of reinvestment of cash flow over the past year. The decline in average investments from the prior quarter is expected to be temporary as current quarter purchases occurred later in the quarter. This is evident as ending balances increased $28 million from the prior quarter end.
•Average deposits grew $377 million from the quarter ended September 30, 2023, driven by a $666 million increase in our average time deposits as we competitively positioned our deposit products over the last year. 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 second quarter of 2024, average deposits grew $10 million, driven by a $12 million increase in our average interest-bearing checking deposits. This increase was partially offset by a decrease in time deposits.
•Average borrowings saw a significant reduction of $423 million compared to the quarter end September 30, 2023 and $103 million compared to the quarter ended June 30, 2024. The decrease in average borrowings is primarily attributable to the strategic pay-down of wholesale borrowings. This decrease was made possible by the restructuring of our investment 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 3Q24 vs.
3Q242Q243Q232Q243Q23
Interest income$171,381 166,854 151,598 2.7 %13.0 %
Interest expense60,079 60,013 43,230 0.1 %39.0 %
Net interest income$111,302 106,841 108,368 4.2 %2.7 %
Net interest margin3.33 %3.20 %3.23 %

Compared to the quarter ended September 30, 2023, net interest income increased $3 million and net interest margin increased to 3.33% from 3.23% for the quarter ended September 30, 2023. This increase in net interest income resulted primarily from:

•A $20 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 5.57% for the quarter ended September 30, 2024 from 5.01% for the quarter ended September 30, 2023. This increase includes a one-time interest recovery of $1.3 million on a commercial loan payoff. Excluding this interest recovery, the adjusted yield on loans for the quarter ended September 30, 2024 was 5.53% and the adjusted net interest margin was 3.29%
•A $17 million increase in interest expense 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 2.39% for the quarter ended September 30, 2024 from 1.74% for the quarter ended September 30, 2023.

Compared to the quarter ended June 30, 2024, net interest income increased $4 million and net interest margin increased to 3.33% for the quarter ended September 30, 2024 from 3.20% for the quarter ended June 30, 2024. This increase in net interest income resulted from the following:

2

•A $5 million increase in interest income driven by higher interest income on loans receivable and investments as average yield increased compared to the prior quarter. The average yield on loans improved to 5.57% from 5.47% and average investment yields increased to 2.48% from 2.13% for the quarter ended June 30, 2024.

Dollars in thousandsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Provision for credit losses - loans$5,727 2,169 3,983 164.0 %43.8 %
Provision for credit losses - unfunded commitments(852)(2,539)(2,981)(66.4)%(71.4)%
Total provision for credit losses expense$4,875 (370)1,002 (1417.6)%386.5 %

The total provision for credit losses for the quarter ended September 30, 2024 was $4.9 million primarily driven by growth within our commercial lending portfolio and changes 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 saw an increase in classified loans to $320 million, or 2.83% of total loans, at September 30, 2024 from $209 million, or 1.84% of total loans, at September 30, 2023 and $257 million, or 2.26% of total loans, at June 30, 2024. The primary driver of the increase over the past year and quarter is reflective of the Company’s exposure to the Long Term Healthcare segment and the challenges a few operators have experienced post Covid.

Dollars in thousandsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Noninterest income:
Loss on sale of investments$— (39,413)— NANA
Gain on sale of SBA loans667 1,457301(54.2)%121.6 %
Service charges and fees15,932 15,527 15,270 2.6 %4.3 %
Trust and other financial services income7,924 7,566 7,085 4.7 %11.8 %
Gain on real estate owned, net105 487 29 (78.4)%262.1 %
Income from bank-owned life insurance1,434 1,371 4,561 4.6 %(68.6)%
Mortgage banking income744 901 632 (17.4)%17.7 %
Other operating income1,027 3,255 3,010 (68.4)%(65.9)%
Total noninterest income/(loss)$27,833 (8,849)30,888 (414.5)%(9.9)%
     
Noninterest income decreased from the quarter ended September 30, 2023 due to a decrease in income from bank-owned life insurance of $3 million as a result of death benefits received in the prior period. Compared to the quarter ended June 30, 2024, excluding the loss on sale of securities of $39 million, noninterest income decreased by $3 million due to a loss on an equity method investment, lower gain on sale of SBA loans and loss on the sale of buildings during the quarter.

Dollars in thousandsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Noninterest expense:
Personnel expense$56,186 53,531 51,243 5.0 %9.6 %
Non-personnel expense34,58138,88936,327(11.1)%(4.8)%
Total noninterest expense$90,767 92,420 87,570 (1.8)%3.7 %

Noninterest expense increased from the quarter ended September 30, 2023 due to a $5 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 coupled with an increase in contracted employees utilized during the quarter and an increase in medical expenses.

Compared to the quarter ended June 30, 2024, noninterest expense decreased due to a $3 million increase in personnel expense driven by additional contracted employees utilized during the quarter and an increase in medical expenses, which were more than offset by a decrease in non-personnel expense of $4 million due to restructuring expenses in the prior quarter and a decrease in fraud losses.

3

Dollars in thousandsChange 3Q24 vs.
3Q242Q243Q232Q243Q23
Income before income taxes$43,493 5,942 50,684 632.0 %(14.2)%
Income tax expense9,8751,19511,464726.4 %(13.9)%
Net income$33,618 4,747 39,220 608.2 %(14.3)%

The provision for income taxes decreased by $2 million from the quarter ended September 30, 2023 and increased $9 million from the quarter ended June 30, 2024 primarily due to the quarterly change in income before income taxes.

Net income decreased from the quarter ended September 30, 2023, due to the factors discussed above, and increased from the quarter ended June 30, 2024 due to loss on sale of investments from the prior 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 September 30, 2024, Northwest operated 130 full-service financial centers and eleven free standing drive-up facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.’s common stock is listed on The Nasdaq Stock Market LLC (“NWBI”). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed online 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, 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, except as required by law.
4

Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(dollars in thousands, except per share amounts)
September 30,
2024		December 31,
2023		September 30,
2023
Assets  
Cash and cash equivalents$226,883 122,260 161,995 
Marketable securities available-for-sale (amortized cost of $1,248,104, $1,240,003 and $1,262,080, respectively)
1,111,868 1,043,359 1,010,076 
Marketable securities held-to-maturity (fair value of $672,641, $699,506 and $682,681, respectively)
766,772 814,839 830,106 
Total cash and cash equivalents and marketable securities2,105,523 1,980,458 2,002,177 
Loans held-for-sale9,370 8,768 10,592 
Residential mortgage loans3,248,788 3,419,417 3,462,606 
Home equity loans1,167,202 1,227,858 1,258,765 
Consumer loans1,998,032 2,126,027 2,155,119 
Commercial real estate loans2,994,379 2,974,010 2,922,582 
Commercial loans1,886,787 1,658,729 1,500,609 
Total loans receivable11,304,558 11,414,809 11,310,273 
Allowance for credit losses(125,813)(125,243)(124,841)
Loans receivable, net11,178,745 11,289,566 11,185,432 
FHLB stock, at cost21,223 30,146 40,404 
Accrued interest receivable46,678 47,353 42,624 
Real estate owned, net76 104 363 
Premises and equipment, net126,391 138,838 138,041 
Bank-owned life insurance255,324 251,895 250,502 
Goodwill380,997 380,997 380,997 
Other intangible assets, net3,363 5,290 6,013 
Other assets236,005 294,458 315,648 
Total assets$14,354,325 14,419,105 14,362,201 
Liabilities and shareholders’ equity  
Liabilities  
Noninterest-bearing demand deposits$2,581,769 2,669,023 2,774,291 
Interest-bearing demand deposits2,676,779 2,634,546 2,598,080 
Money market deposit accounts1,956,747 1,968,218 2,042,813 
Savings deposits2,145,735 2,105,234 2,116,360 
Time deposits2,710,049 2,602,881 2,258,338 
Total deposits12,071,079 11,979,902 11,789,882 
Borrowed funds204,374 398,895 604,587 
Subordinated debt114,451 114,189 114,102 
Junior subordinated debentures129,769 129,574 129,509 
Advances by borrowers for taxes and insurance24,700 45,253 27,653 
Accrued interest payable15,125 13,669 7,915 
Other liabilities203,502 186,306 190,122 
Total liabilities12,763,000 12,867,788 12,863,770 
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, 127,400,199, 127,110,453 and 127,101,349 shares issued and outstanding, respectively
1,274 1,271 1,271 
Additional paid-in capital1,030,384 1,024,852 1,023,591 
Retained earnings665,845 674,686 671,092 
Accumulated other comprehensive loss(106,178)(149,492)(197,523)
Total shareholders’ equity1,591,325 1,551,317 1,498,431 
Total liabilities and shareholders’ equity$14,354,325 14,419,105 14,362,201 
Equity to assets11.09 %10.76 %10.43 %
Tangible common equity to tangible assets*8.64 %8.30 %7.95 %
Book value per share$12.49 12.20 11.79 
Tangible book value per share*$9.47 9.17 8.74 
Closing market price per share$13.38 12.48 10.23 
Full time equivalent employees1,975 2,098 2,084 
Number of banking offices141 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
 September 30, 2024June 30,
2024		March 31, 2024December 31, 2023September 30, 2023
 
Interest income:    
Loans receivable$156,413 153,954 149,571 146,523 140,667 
Mortgage-backed securities10,908 9,426 7,944 7,951 8,072 
Taxable investment securities842 728 794 786 786 
Tax-free investment securities512 457 491 492 491 
FHLB stock dividends394 498 607 666 668 
Interest-earning deposits2,312 1,791 832 970 914 
Total interest income171,381 166,854 160,239 157,388 151,598 
Interest expense:    
Deposits54,198 52,754 47,686 40,600 31,688 
Borrowed funds5,881 7,259 9,315 10,486 11,542 
Total interest expense60,079 60,013 57,001 51,086 43,230 
Net interest income111,302 106,841 103,238 106,302 108,368 
Provision for credit losses - loans5,727 2,169 4,234 3,801 3,983 
Provision for credit losses - unfunded commitments(852)(2,539)(799)4,145 (2,981)
Net interest income after provision for credit losses106,427 107,211 99,803 98,356 107,366 
Noninterest income: 
Loss on sale of investments— (39,413)— (1)— 
Gain on sale of SBA loans667 1,457 873 388 301 
Gain on sale of loans— — — 726 — 
Service charges and fees15,932 15,527 15,523 15,922 15,270 
Trust and other financial services income7,924 7,566 7,127 6,884 7,085 
Gain on real estate owned, net105 487 57 1,084 29 
Income from bank-owned life insurance1,434 1,371 1,502 1,454 4,561 
Mortgage banking income744 901 452 247 632 
Other operating income1,027 3,255 2,429 2,465 3,010 
Total noninterest income/(loss)27,833 (8,849)27,963 29,169 30,888 
Noninterest expense: 
Compensation and employee benefits56,186 53,531 51,540 50,194 51,243 
Premises and occupancy costs7,115 7,464 7,627 7,049 7,052 
Office operations2,811 3,819 2,767 3,747 3,398 
Collections expense474 406 336 328 551 
Processing expenses14,570 14,695 14,725 15,017 14,672 
Marketing expenses2,004 2,410 2,149 1,317 2,379 
Federal deposit insurance premiums2,763 2,865 3,023 2,643 2,341 
Professional services3,302 3,728 4,065 6,255 3,002 
Amortization of intangible assets590 635 701 724 795 
Real estate owned expense23 57 66 51 141 
Merger, asset disposition and restructuring expense43 1,915 955 2,354 — 
Other expenses886 895 2,070 997 1,996 
Total noninterest expense90,767 92,420 90,024 90,676 87,570 
Income before income taxes43,493 5,942 37,742 36,849 50,684 
Income tax expense9,875 1,195 8,579 7,835 11,464 
Net income$33,618 4,747 29,163 29,014 39,220 
Basic earnings per share$0.26 0.04 0.23 0.23 0.31 
Diluted earnings per share$0.26 0.04 0.23 0.23 0.31 
Annualized return on average equity8.50 %1.24 %7.57 %7.64 %10.27 %
Annualized return on average assets0.93 %0.13 %0.81 %0.80 %1.08 %
Annualized return on average tangible common equity *11.26 %1.65 %10.08 %10.28 %13.80 %
Efficiency ratio65.24 %94.31 %68.62 %66.93 %62.88 %
Efficiency ratio, excluding certain items **64.78 %65.41 %67.35 %64.66 %62.31 %
Annualized noninterest expense to average assets2.52 %2.57 %2.51 %2.51 %2.42 %
Annualized noninterest expense to average assets, excluding certain items**2.50 %2.50 %2.47 %2.43 %2.39 %
*    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, 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)
Nine months ended September 30,
20242023
Interest income:
Loans receivable$459,938 397,136 
Mortgage-backed securities28,278 24,935 
Taxable investment securities2,364 2,472 
Tax-free investment securities1,460 1,858 
FHLB stock dividends1,499 2,202 
Interest-earning deposits4,935 1,931 
Total interest income498,474 430,534 
Interest expense:
Deposits154,638 64,743 
Borrowed funds22,455 36,410 
Total interest expense177,093 101,153 
Net interest income321,381 329,381 
Provision for credit losses - loans12,130 14,863 
Provision for credit losses - unfunded commitments(4,190)65 
Net interest income after provision for credit losses313,441 314,453 
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 loans2,997 1,412 
Service charges and fees46,982 43,292 
Trust and other financial services income22,617 20,400 
Gain on real estate owned, net649 922 
Income from bank-owned life insurance4,307 7,134 
Mortgage banking income2,097 2,184 
Other operating income6,711 9,311 
Total noninterest income46,947 84,654 
Noninterest expense:
Compensation and employee benefits161,257 145,497 
Premises and occupancy costs22,206 22,102 
Office operations9,397 9,208 
Collections expense1,216 1,367 
Processing expenses43,990 43,670 
Marketing expenses6,563 8,127 
Federal deposit insurance premiums8,651 6,628 
Professional services11,095 11,564 
Amortization of intangible assets1,926 2,546 
Real estate owned expense146 405 
Merger, asset disposition and restructuring expense2,913 4,395 
Other expenses3,851 5,369 
Total noninterest expense273,211 260,878 
Income before income taxes87,177 138,229 
Income tax expense19,649 32,286 
Net income$67,528 105,943 
Basic earnings per share$0.53 0.83 
Diluted earnings per share$0.53 0.83 
Annualized return on average equity5.80 %9.37 %
Annualized return on average assets0.63 %0.99 %
Annualized return on tangible common equity *7.71 %12.61 %
Efficiency ratio74.18 %63.01 %
Efficiency ratio, excluding certain items **65.82 %61.33 %
Annualized noninterest expense to average assets2.53 %2.45 %
Annualized noninterest expense to average assets, excluding certain items **2.49 %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 endedNine months ended September 30,
September 30, 2024June 30,
2024		September 30, 202320242023
Reconciliation of net income to adjusted net operating income:
Net income (GAAP)$33,618 4,747 39,220 67,528 105,943 
Non-GAAP adjustments
Add: merger, asset disposition and restructuring expense43 1,915 — 2,913 4,395 
Add: loss on the sale of investments— 39,413 — 39,413 8,306 
Less: gain on sale of mortgage servicing rights— — — — (8,305)
Less: tax benefit of non-GAAP adjustments(12)(11,572)— (11,851)(1,231)
Adjusted net operating income (non-GAAP)$33,649 34,503 39,220 98,003 109,108 
Diluted earnings per share (GAAP)$0.26 0.04 0.31 0.53 0.83 
Diluted adjusted operating earnings per share (non-GAAP)$0.26 0.27 0.31 0.77 0.86 
Average equity$1,572,897 1,541,434 1,515,287 1,554,800 1,511,428 
Average assets14,351,669 14,458,592 14,379,323 14,406,092 14,249,857 
Annualized return on average equity (GAAP)8.50 %1.24 %10.27 %5.80 %9.37 %
Annualized return on average assets (GAAP)0.93 %0.13 %1.08 %0.63 %0.99 %
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)8.51 %9.00 %10.27 %8.42 %9.65 %
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)0.93 %0.96 %1.08 %0.91 %1.02 %
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.
September 30,
2024		December 31,
2023		September 30,
2023
Tangible common equity to assets
Total shareholders’ equity$1,591,325 1,551,317 1,498,431 
  Less: goodwill and intangible assets(384,360)(386,287)(387,010)
Tangible common equity$1,206,965 1,165,030 1,111,421 
Total assets$14,354,325 14,419,105 14,362,201 
Less: goodwill and intangible assets(384,360)(386,287)(387,010)
  Tangible assets$13,969,965 14,032,818 13,975,191 
Tangible common equity to tangible assets8.64 %8.30 %7.95 %
Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments
Tangible common equity$1,206,965 1,165,030 1,111,421 
Less: unrealized losses on held to maturity investments(94,131)(115,334)(147,425)
Add: deferred taxes on unrealized losses on held to maturity investments26,357 32,294 41,279 
Tangible common equity, including unrealized losses on held-to-maturity investments$1,139,191 1,081,990 1,005,275 
Tangible assets$13,969,965 14,032,818 13,975,191 
Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments8.15 %7.71 %7.19 %
Tangible book value per share
Tangible common equity$1,206,965 1,165,030 1,111,421 
Common shares outstanding127,400,199 127,110,453 127,101,349 
Tangible book value per share9.47 9.17 8.74 
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 endedNine months ended September 30,
September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		20242023
Annualized return on average tangible common equity
Net income$33,618 4,747 29,163 29,014 39,220 67,528 105,943 
Average shareholders’ equity1,572,897 1,541,434 1,549,870 1,506,895 1,515,287 1,554,800 1,511,428 
Less: average goodwill and intangible assets(384,730)(385,364)(386,038)(386,761)(387,523)(385,375)(388,365)
Average tangible common equity$1,188,167 1,156,070 1,163,832 1,120,134 1,127,764 1,169,425 1,123,063 
Annualized return on average tangible common equity11.26 %1.65 %10.08 %10.28 %13.80 %7.71 %12.61 %
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$90,767 92,420 90,024 90,676 87,570 273,211 260,878 
Less: amortization expense(590)(635)(701)(724)(795)(1,926)(2,546)
Less: merger, asset disposition and restructuring expenses(43)(1,915)(955)(2,354)— (2,913)(4,395)
Non-interest expense, excluding amortization and merger, assets disposition and restructuring expenses$90,134 89,870 88,368 87,598 86,775 268,372 253,937 
Net interest income$111,302 106,841 103,238 106,302 108,368 321,381 329,381 
Non-interest income27,833 (8,849)27,963 29,169 30,888 46,947 84,654 
  Add: loss on the sale of investments— 39,413 — 1 — 39,413 8,306 
  Less: gain on sale of mortgage servicing rights— — — — — — (8,305)
Net interest income plus non-interest income, excluding loss on sale of investments and gain on sale of mortgage servicing rights$139,135 137,405 131,201 135,472 139,256 407,741 414,036 
Efficiency ratio, excluding loss on sale of investments, gain on sale of mortgage servicing rights, amortization and merger, asset disposition and restructuring expenses64.78 %65.41 %67.35 %64.66 %62.31 %65.82 %61.33 %
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$90,134 89,870 88,368 87,598 86,775 268,372 253,937 
Average assets14,351,669 14,458,592 14,408,612 14,329,020 14,379,323 14,406,092 14,249,857 
Annualized non-interest expense to average assets, excluding amortization and merger, asset disposition and restructuring expense2.50 %2.50 %2.47 %2.43 %2.39 %2.49 %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 September 30, 2024
BalancePercent of
total deposits		Number of
relationships
Uninsured deposits per the Call Report (1)$3,097,247 25.7 %5,234 
Less intercompany deposit accounts1,201,625 10.0 %12 
Less collateralized deposit accounts480,039 4.0 %262 
Uninsured deposits excluding intercompany and collateralized accounts$1,415,583 11.7 %4,960
(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 $19.6 million, or 0.16% of total deposits, as of September 30, 2024. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $103 million, or 0.85% of total deposits, as of September 30, 2024. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $285,000 as of September 30, 2024.

The following table provides additional details for the Company’s deposit portfolio:
As of September 30, 2024
BalancePercent of
total deposits		Number of
accounts
Personal noninterest bearing demand deposits$1,316,845 10.9 %286,061 
Business noninterest bearing demand deposits1,264,924 10.5 %43,284 
Personal interest-bearing demand deposits1,340,668 11.1 %56,490 
Business interest-bearing demand deposits1,336,11111.0 %7,688 
Personal money market deposits1,394,904 11.6 %24,735 
Business money market deposits561,843 4.6 %2,738 
Savings deposits2,145,735 17.8 %183,941 
Time deposits2,710,049 22.5 %81,728 
Total deposits $12,071,079 100.0 %686,665

Our average deposit account balance as of September 30, 2024 was $18,000. The Company’s insured cash sweep deposit balance was $487 million as of September 30, 2024.

The following table provides additional details regarding the Company’s deposit portfolio over time:
3/31/20236/30/20239/30/202312/31/20233/31/20246/30/20249/30/2024
Personal noninterest bearing demand deposits$1,428,232 1,397,167 1,375,144 1,357,875 1,369,294 1,350,520 1,316,845 
Business noninterest bearing demand deposits1,467,860 1,423,396 1,399,147 1,311,148 1,249,085 1,231,179 1,264,924 
Personal interest-bearing demand deposits1,627,546 1,535,254 1,477,617 1,464,058 1,427,140 1,396,825 1,340,668 
Business interest-bearing demand deposits466,105 624,252 689,914 812,433 805,069 815,358 955,120
Municipal demand deposits447,852 418,147 430,549 358,055 325,657 353,567 380,991 
Personal money market deposits1,626,614 1,511,652 1,463,689 1,435,939 1,393,532 1,390,162 1,394,904 
Business money market deposits701,436 642,601 579,124 532,279 559,005 574,679 561,843 
Savings deposits2,194,743 2,120,215 2,116,360 2,105,234 2,156,048 2,148,727 2,145,735 
Time deposits1,576,791 1,989,711 2,258,338 2,602,881 2,786,814 2,826,362 2,710,049 
Total deposits $11,537,179 11,662,395 11,789,882 11,979,902 12,071,644 12,087,379 12,071,079 

10

Northwest Bancshares, Inc. and Subsidiaries
Regulatory Capital Requirements (Unaudited)
(dollars in thousands)
 At September 30, 2024
 Actual (1)Minimum capital
requirements (2)		Well capitalized
requirements 
 AmountRatioAmountRatioAmountRatio
Total capital (to risk weighted assets)      
Northwest Bancshares, Inc.$1,705,283 16.024 %$1,117,392 10.500 %$1,064,183 10.000 %
Northwest Bank1,460,909 13.740 %1,116,384 10.500 %1,063,223 10.000 %
Tier 1 capital (to risk weighted assets)    
Northwest Bancshares, Inc.1,457,698 13.698 %904,555 8.500 %851,346 8.000 %
Northwest Bank1,327,894 12.489 %903,739 8.500 %850,578 8.000 %
Common equity tier 1 capital (to risk weighted assets)    
Northwest Bancshares, Inc.1,331,918 12.516 %744,928 7.000 %691,719 6.500 %
Northwest Bank1,327,894 12.489 %744,256 7.000 %691,095 6.500 %
Tier 1 capital (leverage) (to average assets)    
Northwest Bancshares, Inc.1,457,698 10.283 %567,025 4.000 %708,782 5.000 %
Northwest Bank1,327,894 9.374 %566,633 4.000 %708,292 5.000 %
(1)     September 30, 2024 figures are estimated.
(2)    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)
September 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$46,292 — (8,497)37,795 6.05 
   Debt issued by government sponsored enterprises:
   Due after one year through five years136 — (4)132 0.87 
   Municipal securities:
Due after one year through five years884 18 (2)900 1.72 
   Due after five years through ten years15,729 277 (1,382)14,624 7.57 
   Due after ten years52,244 288 (6,971)45,561 10.37 
   Corporate debt issues:
   Due after five years through ten years25,396 307 (867)24,836 5.38 
   Mortgage-backed agency securities:
   Fixed rate pass-through222,573 2,926 (12,641)212,858 6.26 
   Variable rate pass-through3,905 57 (4)3,958 4.01 
   Fixed rate agency CMOs835,445 3,801 (113,373)725,873 5.22 
   Variable rate agency CMOs45,500 44 (213)45,331 7.68 
   Total mortgage-backed agency securities1,107,423 6,828 (126,231)988,020 5.55 
   Total marketable securities available-for-sale$1,248,104 7,718 (143,954)1,111,868 5.79 
Marketable securities held-to-maturity
Government sponsored
Due after one year through five years$109,460 — (10,520)98,940 3.65 
Due after five years through ten years15,000 — (1,923)13,077 5.04 
   Mortgage-backed agency securities:    
   Fixed rate pass-through136,439 — (16,184)120,255 4.76 
   Variable rate pass-through387 — — 387 3.00 
   Fixed rate agency CMOs504,957 — (65,502)439,455 5.66 
   Variable rate agency CMOs529 — (2)527 5.01 
   Total mortgage-backed agency securities642,312 — (81,688)560,624 5.47 
   Total marketable securities held-to-maturity$766,772 — (94,131)672,641 5.20 

12

Northwest Bancshares, Inc. and Subsidiaries
Borrowed Funds (Unaudited)
(dollars in thousands)
September 30, 2024
AmountAverage rate
Term notes payable to the FHLB of Pittsburgh, due within one year$175,000 5.15 %
Collateralized borrowings, due within one year21,624 1.59 %
Collateral received, due within one year 7,750 5.72 %
Subordinated debentures, net of issuance costs114,451 4.28 %
Junior subordinated debentures129,769 7.49 %
      Total borrowed funds *$448,594 5.44 %
*    As of September 30, 2024, the Company had $3.3 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 September 30, 2024, as well as $500 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 September 30, 2024:
Property typePercent of portfolio
5 or more unit dwelling16.6 %
Retail Building11.5 
Nursing Home11.2 
Commercial office building - non-owner occupied8.9 
Manufacturing & industrial building5.4 
Warehouse/storage building5.1 
Residential acquisition & development - 1-4 family, townhouses and apartments4.3 
Commercial office building - owner occupied4.0 
Multi-use building - commercial, retail and residential3.9 
Multi-use building - office and warehouse3.1 
Other medical facility3.0 
Single family dwelling2.6 
Student housing2.1 
Hotel/motel2.1 
Agricultural real estate2.0 
All other14.2 
   Total100.0 %

The following table describes the collateral of our commercial real estate portfolio by state at September 30, 2024:
StatePercent of portfolio
New York33.9 %
Pennsylvania29.3 
Ohio19.8 
Indiana8.9 
All other8.1 
   Total100.0 %
14

Northwest Bancshares, Inc. and Subsidiaries
Asset Quality (Unaudited)
(dollars in thousands)
 September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023
Nonaccrual loans current:     
Residential mortgage loans$1,585 1,563 1,351 959 1,951 
Home equity loans1,239 1,088 974 871 947 
Consumer loans1,229 1,268 1,295 1,051 1,049 
Commercial real estate loans36,735 66,181 66,895 64,603 44,639 
Commercial loans1,922 788 934 1,182 1,369 
Total nonaccrual loans current$42,710 70,888 71,449 68,666 49,955 
Nonaccrual loans delinquent 30 days to 59 days:   
Residential mortgage loans$37 100 1,454 933 48 
Home equity loans157 260 125 174 92 
Consumer loans227 305 294 225 274 
Commercial real estate loans362 699 574 51 1,913 
Commercial loans444 183 161 139 90 
Total nonaccrual loans delinquent 30 days to 59 days$1,227 1,547 2,608 1,522 2,417 
Nonaccrual loans delinquent 60 days to 89 days:     
Residential mortgage loans$549 578 — 511 66 
Home equity loans87 234 488 347 319 
Consumer loans484 603 381 557 312 
Commercial real estate loans207 2,243 52 831 212 
Commercial loans48 8,088 201 56 291 
Total nonaccrual loans delinquent 60 days to 89 days$1,375 11,746 1,122 2,302 1,200 
Nonaccrual loans delinquent 90 days or more:     
Residential mortgage loans$5,370 4,162 4,304 6,324 7,695 
Home equity loans2,558 2,473 2,822 3,100 2,073 
Consumer loans3,265 2,433 2,659 3,212 2,463 
Commercial real estate loans6,167 5,849 6,931 6,488 8,416 
Commercial loans14,156 3,061 3,165 2,770 2,435 
Total nonaccrual loans delinquent 90 days or more$31,516 17,978 19,881 21,894 23,082 
Total nonaccrual loans$76,828 102,159 95,060 94,384 76,654 
Total nonaccrual loans$76,828 102,159 95,060 94,384 76,654 
Loans 90 days past due and still accruing1,045 2,511 2,452 2,698 728 
Nonperforming loans77,873 104,670 97,512 97,082 77,382 
Real estate owned, net76 74 50 104 363 
Nonperforming assets$77,949 104,744 97,562 97,186 77,745 
Nonperforming loans to total loans0.69 %0.92 %0.85 %0.85 %0.68 %
Nonperforming assets to total assets0.54 %0.73 %0.67 %0.67 %0.54 %
Allowance for credit losses to total loans1.11 %1.10 %1.09 %1.10 %1.10 %
Allowance for credit losses to nonperforming loans161.56 %119.49 %128.08 %129.01 %161.33 %

15

Northwest Bancshares, Inc. and Subsidiaries
Loans by Credit Quality Indicators (Unaudited)
(dollars in thousands)
At September 30, 2024PassSpecial
   mention *		Substandard **DoubtfulLossLoans
receivable
Personal Banking:      
Residential mortgage loans$3,246,727 — 11,431 — — 3,258,158 
Home equity loans1,162,951 — 4,251 — — 1,167,202 
Consumer loans1,992,110 — 5,922 — — 1,998,032 
Total Personal Banking6,401,788 — 21,604 — — 6,423,392 
Commercial Banking:      
Commercial real estate loans2,634,987 87,693 271,699 — — 2,994,379 
Commercial loans1,808,433 51,714 26,640 — — 1,886,787 
Total Commercial Banking4,443,420 139,407 298,339 — — 4,881,166 
Total loans$10,845,208 139,407 319,943 — — 11,304,558 
At June 30, 2024
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 
*    Includes $2.9 million, $2.5 million, $2.4 million, $7.8 million, and $6.9 million of acquired loans at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.
**    Includes $26.0 million, $24.3 million, $27.2 million, $20.3 million, and $28.9 million of acquired loans at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.
16

Northwest Bancshares, Inc. and Subsidiaries
Loan Delinquency (Unaudited)
(dollars in thousands)
September 30,
2024		*June 30,
2024		*March 31,
2024		*December 31,
2023		*September 30,
2023		*
(Number of loans and dollar amount of loans)               
Loans delinquent 30 days to 59 days:  
Residential mortgage loans16 $685 — %12 $616 — %351 $38,502 1.1 %307 $30,041 0.9 %6 $573 — %
Home equity loans112 3,907 0.3 %104 3,771 0.3 %113 4,608 0.4 %121 5,761 0.5 %112 4,707 0.4 %
Consumer loans801 10,777 0.5 %742 10,372 0.5 %737 9,911 0.5 %896 11,211 0.5 %733 9,874 0.5 %
Commercial real estate loans21 5,919 0.2 %21 4,310 0.1 %25 6,396 0.2 %23 3,204 0.1 %22 3,411 0.1 %
Commercial loans34 3,260 0.2 %59 4,366 0.3 %62 3,091 0.2 %59 4,196 0.3 %52 2,847 0.2 %
Total loans delinquent 30 days to 59 days984 $24,548 0.2 %938 $23,435 0.2 %1,288 $62,508 0.5 %1,406 $54,413 0.5 %925 $21,412 0.2 %
Loans delinquent 60 days to 89 days:             
Residential mortgage loans75 $9,027 0.3 %70 $8,223 0.2 %3 $70 — %69 $7,796 0.2 %56 $5,395 0.2 %
Home equity loans27 882 0.1 %35 1,065 0.1 %26 761 0.1 %37 982 0.1 %40 1,341 0.1 %
Consumer loans296 3,600 0.2 %295 3,198 0.2 %231 2,545 0.1 %322 3,754 0.2 %236 2,707 0.1 %
Commercial real estate loans11 7,643 0.3 %9 3,155 0.1 %5 807 — %9 1,031 — %13 1,588 0.1 %
Commercial loans19 753 — %22 8,732 0.5 %27 1,284 0.1 %16 703 — %15 981 0.1 %
Total loans delinquent 60 days to 89 days428 $21,905 0.2 %431 $24,373 0.2 %292 $5,467 — %453 $14,266 0.1 %360 $12,012 0.1 %
Loans delinquent 90 days or more: **               
Residential mortgage loans52 $5,370 0.2 %53 $5,553 0.2 %50 $5,813 0.2 %70 $7,995 0.2 %79 $7,695 0.2 %
Home equity loans67 2,558 0.2 %51 2,506 0.2 %71 2,823 0.2 %81 3,126 0.3 %73 2,206 0.2 %
Consumer loans402 3,983 0.2 %358 3,012 0.1 %398 3,345 0.2 %440 3,978 0.2 %357 3,020 0.1 %
Commercial real estate loans13 6,167 0.2 %19 6,034 0.2 %22 6,931 0.2 %27 6,712 0.2 %27 8,416 0.3 %
Commercial loans85 14,484 0.8 %72 3,385 0.2 %62 3,421 0.2 %53 2,780 0.2 %39 2,472 0.2 %
Total loans delinquent 90 days or more619 $32,562 0.3 %553 $20,490 0.2 %603 $22,333 0.2 %671 $24,591 0.2 %575 $23,809 0.2 %
Total loans delinquent2,031 $79,015 0.7 %1,922 $68,298 0.6 %2,183 $90,308 0.8 %2,530 $93,270 0.8 %1,860 $57,233 0.5 %
*    Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
**    Includes purchased credit deteriorated loans of $0.2 million, $0.1 million, $0.4 million, $0.6 million, and $1.4 million at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

17

Northwest Bancshares, Inc. and Subsidiaries
Allowance for Credit Losses (Unaudited)
(dollars in thousands)
Quarter ended
 September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023
Beginning balance$125,070 124,897 125,243 124,841 124,423 
Provision5,727 2,169 4,234 3,801 3,983 
Charge-offs residential mortgage(255)(252)(162)(266)(171)
Charge-offs home equity(890)(237)(412)(133)(320)
Charge-offs consumer(3,560)(2,561)(4,573)(3,860)(3,085)
Charge-offs commercial real estate(475)(500)(349)(742)(484)
Charge-offs commercial(1,580)(1,319)(1,163)(806)(1,286)
Recoveries1,776 2,873 2,079 2,408 1,781 
Ending balance$125,813 125,070 124,897 125,243 124,841 
Net charge-offs to average loans, annualized0.18 %0.07 %0.16 %0.12 %0.13 %


Nine months ended September 30,
20242023
Beginning balance$125,243 118,036 
ASU 2022-02 Adoption— 426 
Provision12,130 14,863 
Charge-offs residential mortgage(669)(923)
Charge-offs home equity(1,539)(719)
Charge-offs consumer(10,694)(8,591)
Charge-offs commercial real estate(1,324)(1,624)
Charge-offs commercial(4,062)(3,360)
Recoveries6,728 6,733 
Ending balance$125,813 124,841 
Net charge-offs to average loans, annualized0.14 %0.10 %
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 
September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Average
balance		InterestAvg. yield/ costAverage
balance		InterestAvg.
yield/
cost		Average
balance		InterestAvg.
yield/
cost 		Average
balance		InterestAvg.
yield/
cost		Average
balance		InterestAvg.
yield/
cost
Assets:              
Interest-earning assets:              
Residential mortgage loans$3,286,316 31,537 3.84 %$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 %
Home equity loans1,166,866 17,296 5.90 %1,183,497 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 %
Consumer loans1,955,988 26,034 5.29 %2,048,396 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 %
Commercial real estate loans2,995,032 47,473 6.31 %3,023,762 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 %
Commercial loans1,819,400 34,837 7.62 %1,770,345 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 %
Total loans receivable (a) (b) (d)11,223,602 157,177 5.57 %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 %
Mortgage-backed securities (c)1,735,728 10,908 2.51 %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 %
Investment securities (c) (d)263,127 1,504 2.29 %287,262 1,316 1.83 %333,752 1,430 1.71 %335,121 1,425 1.70 %336,125 1,431 1.70 %
FHLB stock, at cost20,849 394 7.51 %25,544 498 7.84 %32,249 607 7.57 %35,082 665 7.52 %37,722 668 7.03 %
Other interest-earning deposits173,770 2,312 5.29 %135,520 1,791 5.23 %61,666 832 5.34 %71,987 970 5.27 %67,143 915 5.33 %
Total interest-earning assets13,417,076 172,295 5.11 %13,551,160 167,737 4.98 %13,490,281 161,096 4.80 %13,435,594 158,145 4.67 %13,412,959 152,488 4.51 %
Noninterest-earning assets (e)934,593 907,432 918,331 893,426 966,364 
Total assets$14,351,669   $14,458,592 $14,408,612 $14,329,020 $14,379,323 
Liabilities and shareholders’ equity:            
Interest-bearing liabilities:               
Savings deposits (g)$2,151,933 6,680 1.23 %$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 %
Interest-bearing demand deposits (g)2,567,682 7,452 1.15 %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 %
Money market deposit accounts (g)1,966,684 9,170 1.85 %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 %
Time deposits (g)2,830,737 30,896 4.34 %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 %
Borrowed funds (f)220,677 2,266 4.09 %323,191 3,662 4.56 %469,697 5,708 4.89 %548,089 6,826 4.94 %643,518 7,937 4.89 %
Subordinated debt114,396 1,148 4.01 %114,308 1,148 4.02 %114,225 1,148 4.02 %114,134 1,148 4.02 %114,045 1,148 4.03 %
Junior subordinated debentures129,727 2,467 7.56 %129,663 2,449 7.47 %129,597 2,459 7.51 %129,532 2,512 7.59 %129,466 2,456 7.42 %
Total interest-bearing liabilities9,981,836 60,079 2.39 %10,058,013 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 %
Noninterest-bearing demand deposits (g)2,579,775 2,595,511 2,567,781 2,675,788 2,757,091 
Noninterest-bearing liabilities217,161 263,634 257,269 234,177 257,141 
Total liabilities12,778,772   12,917,158 12,858,742 12,822,125 12,864,036   
Shareholders’ equity1,572,897 1,541,434 1,549,870 1,506,895 1,515,287 
Total liabilities and shareholders’ equity$14,351,669   $14,458,592 $14,408,612 $14,329,020 $14,379,323   
Net interest income/Interest rate spread FTE 112,216 2.72 %107,724 2.58 %104,095 2.52 %107,060 2.63 %109,258 2.77 %
Net interest-earning assets/Net interest margin FTE$3,435,240  3.33 %$3,493,147 3.20 %$3,456,589 3.10 %$3,523,434 3.16 %$3,563,155 3.23 %
Tax equivalent adjustment (d)914 883 857 758 890 
Net interest income, GAAP basis111,302 106,841 103,238 106,302 108,368 
Ratio of interest-earning assets to interest-bearing liabilities1.34X  1.35X1.34X1.36X1.36X
(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 1.78%, 1.76%, 1.61%, 1.37%, and 1.07%, respectively, and average cost of Interest-bearing deposits were 2.27%, 2.24%, 2.06%, 1.77%, and 1.40%, 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.
 Nine months ended September 30,
 20242023
Average
balance		InterestAvg.
yield/
cost (h)		Average
balance		InterestAvg.
yield/
cost (h)
Assets      
Interest-earning assets:      
Residential mortgage loans$3,340,332 96,392 3.85 %$3,485,130 97,090 3.71 %
Home equity loans1,185,145 51,893 5.85 %1,273,878 50,467 5.30 %
Consumer loans2,012,461 77,401 5.14 %2,119,717 66,977 4.22 %
Commercial real estate loans3,005,966 136,556 6.07 %2,857,555 117,074 5.40 %
Commercial loans1,768,325 99,923 7.55 %1,312,750 67,465 6.78 %
Loans receivable (a) (b) (d)11,312,229 462,165 5.46 %11,049,030 399,073 4.83 %
Mortgage-backed securities (c)1,729,064 28,278 2.18 %1,849,567 24,935 1.80 %
Investment securities (c) (d)294,598 4,251 1.92 %364,956 4,909 1.79 %
FHLB stock, at cost26,195 1,499 7.64 %40,945 2,202 7.19 %
Other interest-earning deposits124,037 4,935 5.31 %64,560 1,931 4.00 %
Total interest-earning assets13,486,123 501,128 4.96 %13,369,058 433,050 4.33 %
Noninterest-earning assets (e)919,969 880,799  
Total assets$14,406,092   $14,249,857   
Liabilities and shareholders’ equity      
Interest-bearing liabilities:     
Savings deposits (g)$2,139,461 17,673 1.10 %$2,163,564 4,777 0.30 %
Interest-bearing demand deposits (g)2,554,172 19,501 1.02 %2,550,433 6,684 0.35 %
Money market deposit accounts (g)1,962,019 25,684 1.75 %2,246,422 17,289 1.03 %
Time deposits (g)2,787,306 91,780 4.40 %1,733,428 35,993 2.78 %
Borrowed funds (f)337,427 11,636 4.61 %740,011 26,077 4.71 %
Subordinated debt114,310 3,444 4.02 %113,958 3,444 4.03 %
Junior subordinated debentures129,662 7,375 7.60 %129,401 6,889 7.02 %
Total interest-bearing liabilities10,024,357 177,093 2.36 %9,677,217 101,153 1.40 %
Noninterest-bearing demand deposits (g)2,581,018 2,822,178  
Noninterest-bearing liabilities245,917 239,034  
Total liabilities12,851,292   12,738,429   
Shareholders’ equity1,554,800 1,511,428   
Total liabilities and shareholders’ equity$14,406,092   $14,249,857   
Net interest income/Interest rate spread 324,035 2.60 % 331,897 2.93 %
Net interest-earning assets/Net interest margin$3,461,766  3.21 %$3,691,841  3.32 %
Tax equivalent adjustment (d)2,654 2,516 
Net interest income, GAAP basis321,381 329,381 
Ratio of interest-earning assets to interest-bearing liabilities1.35X  1.38X  
(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 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 1.72% and 0.75%, respectively and average cost of Interest-bearing deposits were 2.19% and 1.00%, respectively.
20
Third Quarter 2024 Earnings Conference Call October 29, 2024 Louis J. Torchio T.K. Creal President and Chief Executive Officer Chief Credit Officer Douglas M. Schosser Joseph D. Canfield Chief Financial Officer Chief Accounting Officer

 
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. See the end of this presentation for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures where applicable. 2

 
3 FOUNDED 1896 TOTAL ASSETS $14.4B TOTAL DEPOSITS $12.1B TOTAL LOANS $11.3B FINANCIAL CENTERS 130 ROA 0.93% ROTCE 11.3%(1) NIM 3.33% Northwest Bancshares At-A-Glance Diluted EPS $0.26 For the quarter ended September 30, 2024 (1) Non-GAAP measure- see slides 17-19 for reconciliation

 
3Q 2024 Highlights: Balance Sheet Management results in Solid Performance 4 Balance Sheet Net Interest Margin Noninterest Income Noninterest Expense Credit Quality • Loan growth muted with focus on re-mixing portfolio and profitable growth • Average commercial loans increased 3% QoQ and 26% YoY • Average deposits flat QoQ and up 3% YoY • Improved 13 bps due to higher average loan and security yields, 4bps due to a nonaccrual loan payoff in 3Q • Cost of funds decreased 1bp due to lower average borrowings • Increase of $37 million QoQ, 2Q24 included a $39.4 million loss on sale of investment securities • Excluding realized loss, 9% decrease QoQ led by lower SBA sale gains • 2% decrease vs 2Q24 driven by decrease in office expense and restructuring costs • Partially offset by increase in personnel expenses • Non-performing assets remains well controlled • Overall ALLL coverage of 1.11% and $5.7 million provision expense for loan losses

 
6.83 6.74 6.63 6.57 6.41 4.36 4.52 4.71 4.79 4.81 5.01% 5.19% 5.33% 5.47% 5.57% 4.30% 4.80% 5.30% 5.80% 6.30% - 2.00 4.00 6.00 8.00 10.00 12.00 3Q23 4Q23 1Q24 2Q24 3Q24 Personal Banking Loans Commercial Loans Loan Yield 11,369 (56) (17) (92) (29) 49 11,224 2Q24 Residential Home Equity Consumer CRE Commercial 3Q24 10,700 10,800 10,900 11,000 11,100 11,200 11,300 11,400 11,500 Loan Balances 5 3Q24 vs. 2Q24 3Q24 vs. 3Q23 Average balances ($ Millions) 3Q24 Change $ Change % Change $ Change % Residential mortgage 3,287 -56 -1.7% -190 -5.5% Home equity 1,167 -17 -1.4% -97 -7.7% Consumer 1,956 -92 -4.5% -136 -6.5% Commercial real estate 2,995 -29 -1.0% 84 2.9% Commercial 1,819 49 2.8% 372 25.7% Total Loans 11,224 -145 -1.3% 33 0.3% Change in Loan Mix • Average loans decreased 1.3% QoQ ,portfolio mix continued to become more commercial weighted • Company focused on profitable growth to drive margin expansion • Average commercial loans increased $49 million compared to 2Q24, or 2.8% despite some significant payoffs • Commercial growth funded through declines in residential mortgage and consumer portfolios, down 1.7% and 4.5% Summary Comments Loan Mix Change Loans declined $145MM or -1.3% +3% $ m illi on s $ bi llio ns Combined Loan Average Balances

 
Deposit Balances 6 3Q24 vs. 2Q24 3Q24 vs. 3Q23 Average balances ($ Millions) 3Q24 Change $ Change % Change $ Change % Demand 2,580 -16 -0.6% -177 -6.4% Interest-bearing Demand 2,567 12 0.5% -2 -0.1% Money Market 1,967 9 0.4% -145 -6.9% Savings 2,152 8 0.4% 35 1.7% Time 2,831 -2 -0.1% 666 30.8% Total Deposits 12,097 11 0.1% 377 3.2% Change in Deposit Mix Deposit Growth and Cost of Deposits • Deposit balances remained strong as average total deposits were stable QoQ and grew 3.2% versus 3Q23 • Customer (non-brokered) average deposits grew $120 million QoQ while brokered deposits decreased $110 million QoQ • The pace of volumes into higher-cost CDs and high-yield savings products is continuing to slow • Cost of deposits increased 2 bps QoQ, the lowest in the past six quarters Summary Comments Deposit Mix Change $ m illi on s $ m illi on s 12,086 (16) (2) 8 9 12 12,097 2Q24 Demand Time Savings Money Market Int-bearing demand 3Q24 12,000 12,020 12,040 12,060 12,080 12,100 12,120 7,443 7,352 7,229 7,296 7,299 4,277 4,444 4,659 4,791 4,798 11,720 11,796 11,888 12,086 12,097 1.07% 1.37% 1.61% 1.76% 1.78% -0.30% 0.20% 0.70% 1.20% 1.70% 2.20% 2.70% 3.20% 3.70% - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 3Q23 4Q23 1Q24 2Q24 3Q24 Demand and Savings Time and Money Market Total Cost of Deposits

 
(4) 4 6 7 333 320 2Q24 Deposits Borrowings Investments Loans 3Q24 280 290 300 310 320 330 340 8,963 9,120 9,320 9,491 9,517 887 792 714 567 465 1.74% 2.04% 2.28% 2.40% 2.39% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 8,000 8,500 9,000 9,500 10,000 10,500 3Q23 4Q23 1Q24 2Q24 3Q24 Interest Bearing Deposits Borrowings Cost of Funds % 109.3 107.1 104.1 107.7 112.2 3.23 3.16 3.10 3.20 3.33 2.95 3.15 3.35 3.55 3.75 100.0 102.0 104.0 106.0 108.0 110.0 112.0 114.0 3Q23 4Q23 1Q24 2Q24 3Q24 Net Intererst Income NIM% Net Interest Income (FTE) and NIM Trends $ m illi on s Net Interest Margin 7 • Net interest income increased 4% with NIM expanding to 3.33% from 3.20% in the previous quarter, with 4bps of the increase due to a non-accrual loan payoff in 3Q • Increased loan yields from growth and repricing, including the non- accrual loan payoff, drove a 13 bps increase in interest earning assets • Total cost of funds decreased 1 bps as lower average borrowing balances at market rates offset higher average deposit rates. • Average borrowing balances decreased $102 million QoQ $ m illi on s Summary Comments B ps Drivers of Net Interest Margin (FTE) Change $108 ($1) $1 $2 $2 $112 Net FTE Interest Income ($MM) Cost of Funds

 
Earning Asset & Funding Mix 8 Funding MixEarning Asset Mix Ending balances ($ Millions) 3Q24 Total % Fixed % Floating % Periodic % Securities 1,879 14% 96% 0% 4% Residential mortgage 3,249 25% 97% 2% 1% Home equity 1,167 9% 64% 36% 0% Consumer 1,998 15% 97% 3% 0% Commercial real estate 2,994 23% 25% 45% 30% Commercial 1,887 14% 27% 70% 3% Total 13,174 100% 68% 24% 8% Ending balances ($ Millions) 3Q24 Total % < 1 Year > 1 Year Demand 2,582 21% 100% 0% Interest-bearing Demand 2,677 22% 100% 0% Money Market 1,957 16% 100% 0% Savings 2,146 17% 99% 1% Time 2,710 22% 96% 4% Borrowings 449 2% 61% 39% Total 12,521 100% 98% 2% • Growth in Commercial Loans is gradually increasing floating % of total earning assets • Consumer loans are fixed but with shorter duration (vehicle loans) • Granular diversified deposit book, average balance of $18,000 • Customer deposits consists of 687K accounts with an average tenure of 12.2 years • Time Deposits have very short duration allowing for benefit of lower rates to impact net interest expense.

 
HTM, 38% AFS, 62% Municipal 4% Treasury/Agency 8% Corporate 1% Agency MBS 18% Agency CMO 69% 1,987 (11) (1) 1 8 32 2,016 2Q24 Agency MBS Treasury/Agency Municipal Corporate Agency CMO 3Q24 1,800 1,850 1,900 1,950 2,000 2,050 2,100 Securities Portfolio 9 • Achieved previously announced securities portfolio restructure metrics • Payback period of ~3 years from the restructure remain unchanged • Securities portfolio yield increased 10bps to 2.55% in the quarter • Portfolio effective duration is 5.6 years • 38% of portfolio is HTM to protect capital Summary Comments 2.55% 2.45% Securities Book Yield Securities Portfolio QoQ change Securities Portfolio $ m illi on s Amortized Cost Securities Classification

 
30.9 29.2 28.0 -8.9 27.8 30.9 29.2 28.0 30.6 27.8 (20.00) (10.00) - 10.00 20.00 30.00 40.00 3Q23 4Q23 1Q24 2Q24 3Q24 Total Non-interest Income Total Non-intereince income - adjusted* Noninterest Income 10 • Excluding 2Q24 $39.4 million loss on the sale of investment securities, noninterest income decreased $2.7 million QoQ • Continued grow in Service charges and Trust income were offset by lower gain on sale of SBA loans and a MTM loss on equity method investment in 3Q24 • Noninterest income decreased $3.1MM vs 3Q23 driven by a BOLI claim benefit in 2023 Summary Comments Noninterest Income Trend $ m illi on s $ in thousands 3Q24 vs. 2Q24 3Q24 vs. 3Q23 Non-interest Income 3Q24 Change $ Change % Change $ Change % Service charges and fees 15,932 405 2.6% 662 4.3% Trust and other financial services 7,924 358 4.7% 839 11.8% Other operating income 1,027 -2,228 -68.4% -1,983 -65.9% Gain on sale loans 667 -790 -54.2% 366 121.6% Bank-owned life insurance 1,434 63 4.6% -3,127 -68.6% Mortgage banking income 744 -157 -17.4% 112 17.7% Gain on real estate owned, net 105 -382 -78.4% 76 262.1% Gain / (Loss) on Sale Investments 0 39,413 100.0% 0 NA Total Non-interest Income 27,833 36,682 414.5% -3,055 -9.9% Total Noninterest Income - Adjusted* 27,833 -2,731 -8.9% - 3,055 -9.9% * Excludes Gain / (Loss) on Sale MSR and Gain / (Loss) on Sale Investments

 
51.2 50.2 51.5 53.5 56.2 36.3 38.1 37.5 37.0 34.2 - 2.4 1.0 1.9 0.4 87.5 90.7 90.0 92.4 90.8 62.3% 64.7% 67.4% 65.4% 64.8% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0% 200.0% - 20.0 40.0 60.0 80.0 100.0 120.0 3Q23 4Q23 1Q24 2Q24 3Q24 Personnel Non-personnel Restructuring Efficiency Ratio Noninterest Expense 11 • Disciplined expense management led to a QoQ 1.8% decrease in expenses • Compensation and benefits growth vs 2Q24 attributed to additional temporary contracted employees, YoY increase due to buildout of Commercial Business and related support functions • Office operations decrease reflects a decrease in fraud losses Summary Comments Expense Mix and Efficiency Trend $ m illi on s * Non-GAAP financial measure; See "Use of non-GAAP Financial Measures” and Non-GAAP reconciliations herein. $ in thousands 3Q24 vs. 2Q24 3Q24 vs 3Q23 Non-interest Expense 3Q24 Change $ Change % Change $ Change % Compensation and employee benefits 56,186 2,655 5.0% 4,943 9.6% Processing expenses 14,570 -125 -0.9% -102 -0.7% Premises and occupancy costs 7,115 -349 -4.7% 63 0.9% Office operations 2,811 -1,008 -26.4% -587 -17.3% Professional services 3,302 -426 -11.4% 300 10.0% Federal deposit insurance premiums 2,763 -102 -3.6% 422 18.0% Marketing expenses 2,004 -406 -16.8% -375 -15.8% Merger, asset disposition and restructuring expense 43 -1,872 -97.8% 43 NA Other 1,973 -20 -1.0% -1,510 -43.4 Total Non-interest Expense 90,767 -1,653 -1.8% 3,197 3.7% 3Q23 4Q23 1Q24 2Q24 3Q24 Efficiency Ratio 62.9% 66.9% 68.6% 94.3% 65.2% Efficiency Ratio* 62.3% 64.7% 67.4% 65.4% 64.8%

 
125.1 (5.0) 5.7 125.8 2Q24 Net Charge-offs Provision 3Q24 90.0 95.0 100.0 105.0 110.0 115.0 120.0 125.0 130.0 Allowance for Credit Losses 12 $ m illi on s • Overall ALLL coverage remains strong, increasing to 1.11% • Net charge-offs of 18 bps increased vs 2Q24 that were lower due to recoveries in that quarter • $5.7 million provision expense for loan losses based on CECL modeling Summary Comments Allowance Quarter-over-Quarter Change Total Loans and Allowance $ m illi on s Net Charge-offs and Provision $ m illi on s 1.11% 1.10% Allowance to Loans 11,310 11,415 11,501 11,354 11,305 1.10% 1.10% 1.09% 1.10% 1.11% 1.00% 1.10% 1.20% 1.30% 1.40% 11,000 11,100 11,200 11,300 11,400 11,500 11,600 3Q23 4Q23 1Q24 2Q24 3Q24 Loan Balances Allowance to Loans 4.0 3.8 4.2 2.2 5.7 0.13% 0.12% 0.16% 0.07% 0.18% 0.00% 0.06% 0.12% 0.18% 0.24% 0.30% 0.36% 0.42% 0.48% - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 3Q23 4Q23 1Q24 2Q24 3Q24 Provision for Credit Losses - Loans Net Charge-offs to Average Loans

 
208.6 218.5 228.8 256.8 319.9 1.84% 1.91% 1.99% 2.26% 2.83% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% (10.0) 40.0 90.0 140.0 190.0 240.0 290.0 340.0 3Q23 4Q23 1Q24 2Q24 3Q24 Classified Loans Classified Loans to Total Loans Credit Quality 13 $ m illi on s • Disciplined underwriting focus has resulted in credit risk metrics remaining steady and below pre-pandemic as well as national levels • Non-performing assets improved due to pay-off of a commercial credit during the quarter • 3Q24 increase in classified assets is reflective of the long-term health care segment exposure Summary Comments Non-Performing Assets 30 Day Loan Delinquency $ m illi on s Classified Loans $ m illi on s 57.2 93.3 90.3 68.3 79.0 0.50% 0.79% 0.76% 0.59% 0.70% -0.10% 0.40% 0.90% 1.40% - 20.0 40.0 60.0 80.0 100.0 3Q23 4Q23 1Q24 2Q24 3Q24 Delinquent Loans Delinquency Percentage 78 97 98 105 78 0.54% 0.67% 0.67% 0.73% 0.54% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 0 20 40 60 80 100 120 3Q23 4Q23 1Q24 2Q24 3Q24 Nonperformaing Assets Percent of Total Loans

 
Nursing Home 25% Other Non RE Collateral… Commercial Office Building… 5 or More Unit Dwelling 8% Retail Building 7% Other Medical Facility 6% All Others ~20 other property types 35% Commercial/CRE Loan Distribution 14 • Diverse portfolio has allowed Northwest to avoid material industry issues; Immaterial large metro office or rent controlled multi- family concentrations • Health care sector is a focus, see detail on slide 16 • Maturity and interest rate rollover risk is not significant Classified Loan by Collateral Type Commercial Commitments By IndustrySummary Comments Real Estate and Rental and Leasing 35.6% Manufacturing 11.2% Health Care and Social Assistance 10.3% Construction 4.9% Retail Trade 4.7% All Others ~20 other industries 33.3% $6.4B 47% of Total Loan Commitments $320MM 2.8% of Total Loan Outstandings

 
5 or More Unit Dwelling 14% Retail Building 13% Nursing Home 12% Commercial Office Building NonOwner Occupied 10% Manufacturing & Industrial Building 6% All Others ~30 other property types 46% $3.1B 27% of Total Loan Outstandings Commercial Real Estate Concentration 15 • $362MM in exposure of which 22% is classified with no material delinquency • Portfolio is well diversified geographically - $105MM Ohio - $85MM New York - $63MM Pennsylvania - $27MM Indiana • While there is elevated risk in the industry due to inflation effects on particularly personnel expenses and interest rates, industry occupancy has returned to pre-pandemic levels. • Reimbursement rates from Medicare/Medicaid are finally catching up with inflation. • Market appetite exists from an M&A perspective providing exit options Regulatory CRE Concentration 167% of T1+ACL Property Type Commercial Office Geographic Diversification CBSA Commitment Buffalo NY $119,413,759 Harrisburg PA $40,453,928 Rochester NY $37,465,764 New York NY $28,631,665 Cleveland OH $24,569,468 Total 250,534,584

 
2024 Outlook 16 $ in Millions 1Q24 2Q24 3Q24 4Q24 Guidance Average Loans 11,345 11,369 11,224 Profitability and credit discipline keeps growth in low single digits per quarter Average Deposits 11,888 12,086 12,097 Stable deposit balances expected through managed cost Net Interest Margin 3.10% 3.20% *3.33% Low single digit margin expansion expected vs 3Q Noninterest Income 28.0 -8.8 27.8 Mid single digit growth off 3Q level Noninterest Expense 90.0 92.4 90.8 Low single digit growth off adjusted base per quarter Effective Tax Rate 22.7% 20.1% 22.7% Expected to be consistent with 3Q rate Net charge-offs 0.16% 0.07% 0.18% Trend towards normalized net charge-off (25bps- 35bps) Note: Low single digits is 0 – 2%, Mid single digit is 3%-6%, High single digit is 7%-9% *-3Q net interest margin included 4bps positive impact from non-accrual loan payoff

 
Non-GAAP Reconciliation 17*Dollars in thousands, except per share amounts

 
Non-GAAP Reconciliation – Continued 18 *Dollars in thousands

 
v3.24.3
Cover Page Document
Oct. 29, 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 Oct. 29, 2024
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