Northwest Bancshares, Inc. Announces First Quarter 2025 net income of $43 million, or $0.34 per diluted share

Net interest margin expands 45 basis points to 3.87% our 4th consecutive quarter of improved margin

All regulatory and shareholder approvals received for Penns Woods merger

Total revenue grew 19% from first quarter 2024

3rd consecutive quarter of reduced costs of funds

Credit quality remains stable with nonperforming assets at 0.52% of total assets

COLUMBUS, Ohio, April 28, 2025 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (Nasdaq: NWBI) announced net income for the quarter ended March 31, 2025 of $43 million, or $0.34 per diluted share. This represents an increase of $14 million compared to the same quarter last year, when net income was $29 million, or $0.23 per diluted share, and an increase of $11 million compared to the prior quarter, when net income was $33 million, or $0.26 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended March 31, 2025 were 10.90% and 1.22% compared to 7.57% and 0.81% for the same quarter last year and 8.20% and 0.91% from the prior quarter.(PRNewsfoto/Northwest Bancshares, Inc.)

Compared to adjusted net income (non-GAAP) of $35 million, or $0.27, per diluted share in the prior quarter, adjusted net income (non-GAAP) increased by $9 million to $44 million, or $0.35, per diluted share for the quarter ended March 31, 2025. This increase was driven by a $14 million increase in net interest income impacted by a large non-accrual interest income recovery. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended March 31, 2025 were 11.11% and 1.25% compared to 8.71% and 0.97% for the prior quarter.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on May 20, 2025 to shareholders of record as of May 8, 2025. This is the 122th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of March 31, 2025, this represents an annualized dividend yield of approximately 6.7%.

Louis J. Torchio, President and CEO, Northwest Bancshares commented, "Our strong performance, with record earnings for a first quarter and one of the best quarters in Northwest's history, is a result of the Northwest team's continued rigorous focus on execution, and cost control and risk management discipline. We continue to enhance our capabilities, expand our footprint, and provide personalized services and expertise to our consumers, companies, and the communities we serve."

Story Continues

"Despite the unpredictable operating environment, I remain confident and excited about Northwest's prospects for the year ahead. We continue to focus on managing the factors within our control, such as serving our core customers and communities, building on our strong and stable financial foundations, maintaining prudent cost control and risk management discipline, and executing to plan on our financial close and systems conversion for the Penns Woods acquisition by late July 2025. We are well prepared to capitalize on opportunities aligned with our strategy for sustainable, responsible, and profitable growth, when and where they arise in the coming months."

Balance Sheet Highlights

Dollars in thousands       Change 1Q25 vs. 1Q25  4Q24  1Q24  4Q24  1Q24 Average loans receivable $     11,176,516  11,204,781  11,345,308  (0.3) %  (1.5) % Average investments 2,037,227  2,033,991  2,051,058  0.2 %  (0.7) % Average deposits 12,088,371  12,028,417  11,887,954  0.5 %  1.7 % Average borrowed funds 224,122  222,506  469,697  0.7 %  (52.3) %

Average loans receivable decreased $169 million from the quarter ended March 31, 2024 driven by our personal banking portfolio, which decreased by $388 million as cash flows from this portfolio were reinvested in our commercial portfolios.  This was partially offset by growth in our commercial banking portfolio, which grew by $219 million in total, including a $339 million increase in our commercial and industrial portfolio as we have continued to build-out our commercial lending verticals. Compared to the fourth quarter of 2024, average loans receivable decreased by $28 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 $14 million from the quarter ended March 31, 2024 and increased $3 million from the quarter ended December 31, 2024. The decline from the prior year was driven by the investment portfolio restructure which occurred in the second quarter of 2024 as a portion of the proceeds from the investment sale were used to reduce outstanding borrowings. The growth in average investments from the prior quarter was due to an increase in net portfolio purchases during the quarter to reach a normalized percentage of total assets for liquidity purposes. Average deposits grew $200 million from the quarter ended March 31, 2024 and $60 million from the quarter ended December 31, 2024. The growth in both periods was driven by an increase in both money market and saving account balances partly due to customers shifting funds to these competitively priced products as their time deposits matured. These  increases were partially offset by a decrease in brokered time deposit balances as growth in core deposits provided sufficient funding. Average borrowings decreased $246 million compared to the quarter end March 31, 2024 and increased $2 million compared to the quarter ended December 31, 2024. The decrease in average borrowings from the prior year is primarily attributable to the strategic pay-down of wholesale borrowings with the proceeds from our investment portfolio restructuring in the second quarter of 2024.

Income Statement Highlights

Dollars in thousands      Change 1Q25 vs. 1Q25  4Q24  1Q24  4Q24  1Q24 Interest income $    180,595  170,722  160,239  5.8 %  12.7 % Interest expense 52,777  56,525  57,001  (6.6) %  (7.4) % Net interest income $    127,818  114,197  103,238  11.9 %  23.8 %  Net interest margin 3.87 %  3.42 %  3.10 %

Compared to the quarter ended March 31, 2024, net interest income increased $25 million and net interest margin increased to 3.87% from 3.10% for the quarter ended March 31, 2024. This increase in net interest income resulted primarily from:

A $20 million increase in interest income that was the result of higher average yields, partly offset by lower average earning assets. The average yield on loans improved to 6.00% for the quarter ended March 31, 2025 from 5.33% for the quarter ended March 31, 2024. This increase was driven by a loan mix shift towards  higher yielding commercial loans and also includes an interest recovery of $13.1 million on a non-accrual commercial loan payoff during the quarter ended March 31, 2025. Excluding this interest recovery, the yield on loans for the quarter ended March 31, 2025 was 5.52% and the net interest margin was 3.48%. The average yields on investments increased due to a portfolio restructuring completed in the second quarter of 2024. A $4 million decrease in interest expense as the result of a decline in the average balance of borrowings and higher cost brokered CDs that was accomplished by growth in core deposits. The cost of interest-bearing liabilities decreased to 2.15% for the quarter ended March 31, 2025 from 2.28% for the quarter ended March 31, 2024.

Compared to the quarter ended December 31, 2024, net interest income increased $14 million and net interest margin increased to 3.87% for the quarter ended March 31, 2025 from 3.42% for the quarter ended December 31, 2024. This increase in net interest income resulted from the following:

A $10 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 6.00% from 5.56% and average investment yields increased to 2.62% from 2.57% for the quarter ended December 31, 2024. The increase in loan yields was impacted by non-accrual interest recoveries in both the current and prior quarter, partially offset by the full impact of fourth quarter 2024 rate cuts. A $4 million decrease in interest expense driven by lower interest expense on deposits as average cost declined compared to the prior quarter to 2.02% from 2.14% for the quarter ended December 31, 2024.

Dollars in thousands       Change 1Q25 vs. 1Q25  4Q24  1Q24  4Q24  1Q24 Provision for credit losses - loans $           8,256  15,549  4,234  (46.9) %  95.0 % Provision for credit losses - unfunded commitments (345)  1,016  (799)  (134.0) %  (56.8) % Total provision for credit losses expense $           7,911  16,565  3,435  (52.2) %  130.3 %

The total provision for credit losses for the quarter ended March 31, 2025 was $8 million primarily driven by growth within our commercial lending portfolio and changes in the economic forecasts. Total provision for credit losses for the quarter ended December 31, 2024 was $17 million as the result of steps taken to de-risk our loan portfolio and reduce our levels of nonperforming, criticized and classified loans by completing two loan pool sales and transferring certain loans within our Long Term Healthcare portfolio into held for sale. As a result we saw an elevated level of charge-offs during the fourth quarter as the loans noted above were written-down to fair market value prior to sale. Total charge-offs related to the loan sales and transfer to loans held-for-sale was a combined $15 million.

The Company saw an increase in classified loans to $279 million, or 2.49% of total loans, at March 31, 2025 from $229 million, or 1.99% of total loans, at March 31, 2024 and $272 million, or 2.44% of total loans, at December 31, 2024.

Dollars in thousands      Change 1Q25 vs. 1Q25  4Q24  1Q24  4Q24  1Q24 Noninterest income:  Gain on sale of SBA loans $           1,238  822  873  50.6 %  41.8 % Service charges and fees 14,987  15,975  15,523  (6.2) %  (3.5) % Trust and other financial services income 7,910  7,485  7,127  5.7 %  11.0 % Gain on real estate owned, net 84  238  57  (64.7) %  47.4 % Income from bank-owned life insurance 1,331  2,020  1,502  (34.1) %  (11.4) % Mortgage banking income 696  224  452  210.7 %  54.0 % Other operating income 2,109  13,299  2,429  (84.1) %  (13.2) % Total noninterest income $         28,355  40,063  27,963  (29.2) %  1.4 %

Noninterest income remained flat from the quarter ended March 31, 2024 and decreased by $12 million from the quarter ended December 31, 2024, due primarily to a decrease in other operating income driven by a gain on sale of Visa B shares and a gain on a low income housing tax credit investment that occurred in the quarter ended December 31, 2024.

Dollars in thousands      Change 1Q25 vs. 1Q25  4Q24  1Q24  4Q24  1Q24 Noninterest expense:  Personnel expense $         54,540  53,198  51,540  2.5 %  5.8 % Non-personnel expense 37,197  42,128  38,484  (11.7) %  (3.3) % Total noninterest expense $         91,737  95,326  90,024  (3.8) %  1.9 %

Noninterest expense increased from the quarter ended March 31, 2024 due to a $3 million increase in personnel expenses driven by an increase in incentive compensation and an increase in medical expenses, which was partially offset by a decrease in non-personnel expense of $1 million  due to the decline in professional services fees.

Compared to the quarter ended December 31, 2024, noninterest expense decreased due to a decrease in non-personnel expense of $5 million due to restructuring expenses in the prior quarter and a decrease in processing expense due to technology investments in the prior period.

Dollars in thousands      Change 1Q25 vs. 1Q25  4Q24  1Q24  4Q24  1Q24 Income before income taxes $         56,525  42,369  37,742  33.4 %  49.8 % Income tax expense 13,067  9,619  8,579  35.8 %  52.3 % Net income $         43,458  32,750  29,163  32.7 %  49.0 %

The provision for income taxes increased by $4 million from the quarter ended March 31, 2024 and increased $3 million from the quarter ended December 31, 2024 primarily due to the quarterly change in income before income taxes.

Net income increased from the quarter ended March 31, 2024 and December 31, 2024 due to the 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 March 31, 2025, 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.

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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 limitation, 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. This release also contains forward-looking statements with respect to the proposed merger between the Company and Penns Woods Bancorp, Inc. ("Penns Woods") including, without limitation, statements with respect to the expected timing of the proposed merger. Such statements are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors including, without limitation: the proposed merger may not be consummated within the anticipated time period or at all.  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.

Investor Contact: Michael Perry, Corporate Development & Strategy (814) 726-2140
Media Contact: Ian Bailey, External Communications (380) 400-2423

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(dollars in thousands, except per share amounts)  March 31,
2025  December 31,
2024  March 31,
2024 Assets  Cash and cash equivalents $       353,203  288,378  119,319 Marketable securities available-for-sale (amortized cost of $1,304,760, $1,278,665 and $1,298,108, 
respectively) 1,153,385  1,108,944  1,094,009 Marketable securities held-to-maturity (fair value of $637,803, $637,948 and $680,353, respectively) 735,909  750,586  801,107 Total cash and cash equivalents and marketable securities 2,242,497  2,147,908  2,014,435  Loans held-for-sale 71,206  76,331  8,082 Residential mortgage loans 3,121,647  3,178,269  3,374,980 Home equity loans 1,141,577  1,149,396  1,196,607 Consumer loans 2,081,469  1,995,085  2,118,367 Commercial real estate loans 2,792,734  2,849,862  3,028,314 Commercial loans 2,079,018  2,007,402  1,774,896 Total loans receivable 11,216,445  11,180,014  11,493,164 Allowance for credit losses (122,809)  (116,819)  (124,897) Loans receivable, net 11,093,636  11,063,195  11,368,267  FHLB stock, at cost 17,941  21,006  30,811 Accrued interest receivable 45,949  46,356  50,680 Real estate owned, net 80  35  50 Premises and equipment, net 123,138  124,246  130,565 Bank-owned life insurance 254,444  253,137  252,842 Goodwill 380,997  380,997  380,997 Other intangible assets, net 2,334  2,837  4,589 Other assets 221,505  292,176  268,945 Total assets $   14,453,727  14,408,224  14,510,263 Liabilities and shareholders' equity  Liabilities  Noninterest-bearing demand deposits $     2,640,943  2,621,415  2,618,379 Interest-bearing demand deposits 2,590,568  2,666,504  2,557,866 Money market deposit accounts 2,124,293  2,007,739  1,952,537 Savings deposits 2,221,901  2,171,251  2,156,048 Time deposits 2,596,451  2,677,645  2,786,814 Total deposits 12,174,156  12,144,554  12,071,644  Borrowed funds 197,270  200,331  400,783 Subordinated debt 114,625  114,538  114,276 Junior subordinated debentures 129,899  129,834  129,639 Advances by borrowers for taxes and insurance 44,121  42,042  46,970 Accrued interest payable 6,843  6,935  17,395 Other liabilities 157,858  173,134  177,107 Total liabilities 12,824,772  12,811,368  12,957,814 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, 127,736,303, 127,508,003 and 
127,253,189 shares issued and outstanding, respectively 1,277  1,275  1,273 Additional paid-in capital 1,035,093  1,033,385  1,026,173 Retained earnings 691,066  673,110  678,427 Accumulated other comprehensive loss (98,481)  (110,914)  (153,424) Total shareholders' equity 1,628,955  1,596,856  1,552,449 Total liabilities and shareholders' equity $   14,453,727  14,408,224  14,510,263  Equity to assets 11.27 %  11.08 %  10.70 % Tangible common equity to tangible assets* 8.85 %  8.65 %  8.26 % Book value per share $           12.75  12.52  12.20 Tangible book value per share* $             9.75  9.51  9.17 Closing market price per share $           12.02  13.19  11.65 Full time equivalent employees 1,996  1,956  2,060 Number of banking offices 141  141  142

*          Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)  Quarter ended March 31, 
2025  December 31,
2024  September 30, 
2024  June 30,

2024  March 31,

2024  Interest income:  Loans receivable $     164,638  155,838  156,413  153,954  149,571 Mortgage-backed securities 11,730  11,515  10,908  9,426  7,944 Taxable investment securities 933  910  842  728  794 Tax-free investment securities 512  515  512  457  491 FHLB stock dividends 366  392  394  498  607 Interest-earning deposits 2,416  1,552  2,312  1,791  832 Total interest income 180,595  170,722  171,381  166,854  160,239 Interest expense:  Deposits 47,325  50,854  54,198  52,754  47,686 Borrowed funds 5,452  5,671  5,881  7,259  9,315 Total interest expense 52,777  56,525  60,079  60,013  57,001 Net interest income 127,818  114,197  111,302  106,841  103,238 Provision for credit losses - loans 8,256  15,549  5,727  2,169  4,234 Provision for credit losses - unfunded commitments (345)  1,016  (852)  (2,539)  (799) Net interest income after provision for credit losses 119,907  97,632  106,427  107,211  99,803 Noninterest income:  Loss on sale of investments —  —  —  (39,413)  — Gain on sale of SBA loans 1,238  822  667  1,457  873 Service charges and fees 14,987  15,975  15,932  15,527  15,523 Trust and other financial services income 7,910  7,485  7,924  7,566  7,127 Gain on real estate owned, net 84  238  105  487  57 Income from bank-owned life insurance 1,331  2,020  1,434  1,371  1,502 Mortgage banking income 696  224  744  901  452 Other operating income 2,109  13,299  1,027  3,255  2,429 Total noninterest income/(loss) 28,355  40,063  27,833  (8,849)  27,963 Noninterest expense:  Compensation and employee benefits 54,540  53,198  56,186  53,531  51,540 Premises and occupancy costs 8,400  7,263  7,115  7,464  7,627 Office operations 2,977  3,036  2,811  3,819  2,767 Collections expense 328  905  474  406  336 Processing expenses 13,990  15,361  14,570  14,695  14,725 Marketing expenses 1,880  2,327  2,004  2,410  2,149 Federal deposit insurance premiums 2,328  2,949  2,763  2,865  3,023 Professional services 2,756  3,788  3,302  3,728  4,065 Amortization of intangible assets 504  526  590  635  701 Merger, asset disposition and restructuring expense 1,123  2,850  43  1,915  955 Other expenses 2,911  3,123  909  952  2,136 Total noninterest expense 91,737  95,326  ...90,767  92,420  90,024 Income before income taxes 56,525  42,369  43,493  5,942  37,742 Income tax expense 13,067  9,619  9,875  1,195  8,579 Net income $       43,458  32,750  33,618  4,747  29,163  Basic earnings per share $          0.34  0.26  0.26  0.04  0.23 Diluted earnings per share $          0.34  0.26  0.26  0.04  0.23  Weighted average common shares outstanding - diluted 128,299,013  127,968,910  127,714,511  127,199,039  127,598,971  Annualized return on average equity 10.90 %  8.20 %  8.50 %  1.24 %  7.57 % Annualized return on average assets 1.22 %  0.91 %  0.93 %  0.13 %  0.81 % Annualized return on average tangible common equity * 14.29 %  10.81 %  11.26 %  1.65 %  10.08 % Efficiency ratio 58.74 %  61.80 %  65.24 %  94.31 %  68.62 % Efficiency ratio, excluding certain items  ** 57.70 %  59.61 %  64.78 %  65.41 %  67.35 %

*         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, 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.

Northwest Bancshares, Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures (Unaudited) *

(dollars in thousands, except per share amounts)  Quarter ended March 31, 
2025  December 31,
2024  March 31,

2024 Reconciliation of net income to adjusted net income:  Net income (GAAP) $       43,458  32,750  29,163 Non-GAAP adjustments  Add: merger, asset disposition and restructuring expense 1,123  2,850  955 Less: tax benefit of non-GAAP adjustments (314)  (798)  (267) Adjusted net income (non-GAAP) $       44,267  34,802  29,851 Diluted earnings per share (GAAP) $          0.34  0.26  0.23 Diluted adjusted earnings per share (non-GAAP) $          0.35  0.27  0.23  Average equity $  1,616,611  1,589,228  1,549,870 Average assets 14,402,483  14,322,864  14,408,612 Annualized return on average equity (GAAP) 10.90 %  8.20 %  7.57 % Annualized return on average assets (GAAP) 1.22 %  0.91 %  0.81 % Annualized return on average equity, excluding merger, asset disposition and restructuring expense and
loss on the sale of investments, net of tax (non-GAAP) 11.11 %  8.71 %  7.75 % Annualized return on average assets, excluding merger, asset disposition and restructuring expense and
loss on sale of investments, net of tax (non-GAAP) 1.25 %  0.97 %  0.83 %

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.

March 31,
2025  December 31,
2024  March 31,
2024 Tangible common equity to assets  Total shareholders' equity $     1,628,955  1,596,856  1,552,449 Less: goodwill and intangible assets (383,331)  (383,834)  (385,586) Tangible common equity $     1,245,624  1,213,022  1,166,863  Total assets $   14,453,727  14,408,224  14,510,263 Less: goodwill and intangible assets (383,331)  (383,834)  (385,586) Tangible assets $   14,070,396  14,024,390  14,124,677  Tangible common equity to tangible assets 8.85 %  8.65 %  8.26 %  Tangible book value per share  Tangible common equity $     1,245,624  1,213,022  1,166,863 Common shares outstanding 127,736,303  127,508,003  127,253,189 Tangible book value per share 9.75  9.51  9.17

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 ended March 31,
2025  December 31,
2024  September 30,
2024  June 30,
2024  March 31,
2024  Annualized return on average tangible common equity  Net income $        43,458  32,750  33,618  4,747  29,163  Average shareholders' equity 1,616,611  1,589,228  1,572,897  1,541,434  1,549,870 Less: average goodwill and intangible assets (383,649)  (384,178)  (384,730)  (385,364)  (386,038) Average tangible common equity $   1,232,962  1,205,050  1,188,167  1,156,070  1,163,832  Annualized return on average tangible common equity 14.29 %  10.81 %  11.26 %  1.65 %  10.08 %  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 $        91,737  95,326  90,767  92,420  90,024 Less: amortization expense (504)  (526)  (590)  (635)  (701) Less: merger, asset disposition and restructuring expenses (1,123)  (2,850)  (43)  (1,915)  (955) Non-interest expense, excluding amortization and merger, assets disposition and restructuring expenses $        90,110  91,950  90,134  89,870  88,368  Net interest income $      127,818  114,197  111,302  106,841  103,238 Non-interest income 28,355  40,063  27,833  (8,849)  27,963 Add: loss on the sale of investments —  —  —  39,413  — Net interest income plus non-interest income, excluding loss on sale of investments $      156,173  154,260  139,135  137,405  131,201  Efficiency ratio, excluding loss on sale of investments, amortization and merger, asset disposition and restructuring expenses 57.70 %  59.61 %  64.78 %  65.41 %  67.35 %

*    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, amortization expense and loss on sale of investments. 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.

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 March 31, 2025 Balance  Percent of 
total deposits  Number of 
relationships Uninsured deposits per the Call Report (1) $                      3,222,098  26.5 %  5,345 Less intercompany deposit accounts 1,282,989  10.5 %  12 Less collateralized deposit accounts 395,737  3.3 %  237 Uninsured deposits excluding intercompany and collateralized accounts $                      1,543,372  12.7 %  5,096

(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 $29.2 million, or 0.24% of total deposits, as of March 31, 2025. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $186.0 million, or 1.53% of total deposits, as of March 31, 2025. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $303,000 as of March 31, 2025.   The following table provides additional details for the Company's deposit portfolio:

As of March 31, 2025 Balance  Percent of 
total deposits  Number of 
accounts Personal noninterest bearing demand deposits $              1,404,770  11.5 %  284,530 Business noninterest bearing demand deposits 1,236,173  10.2 %  42,964 Personal interest-bearing demand deposits 1,374,998  11.3 %  55,371 Business interest-bearing demand deposits 1,215,570  10.0 %  7,486 Personal money market deposits 1,512,596  12.4 %  24,817 Business money market deposits 611,697  5.0 %  2,675 Savings deposits 2,221,901  18.3 %  178,473 Time deposits 2,596,451  21.3 %  78,677 Total deposits  $            12,174,156  100.0 %  674,993

Our average deposit account balance as of March 31, 2025 was $18,036. The Company's insured cash sweep deposit balance was $501 million as of March 31, 2025.

Northwest Bancshares, Inc. and Subsidiaries

Regulatory Capital Requirements (Unaudited)

(dollars in thousands)  At March 31, 2025 Actual (1)  Minimum capital

requirements (2)  Well capitalized

requirements  Amount  Ratio  Amount  Ratio  Amount  Ratio Total capital (to risk weighted assets)  Northwest Bancshares, Inc. $     1,743,262  16.468 %  $     1,111,489  10.500 %  $     1,058,561  10.000 % Northwest Bank 1,504,956  14.231 %  1,110,402  10.500 %  1,057,526  10.000 %  Tier 1 capital (to risk weighted assets)  Northwest Bancshares, Inc. 1,496,161  14.134 %  899,777  8.500 %  635,136  6.000 % Northwest Bank 1,372,608  12.979 %  898,897  8.500 %  846,021  8.000 %  Common equity tier 1 capital (to risk weighted assets)  Northwest Bancshares, Inc. 1,370,251  12.944 %  740,992  7.000 %  N/A  N/A Northwest Bank 1,372,608  12.979 %  740,268  7.000 %  687,392  6.500 %  Tier 1 capital (leverage)  (to average assets)  Northwest Bancshares, Inc. 1,496,161  10.512 %  569,332  4.000 %  N/A  N/A Northwest Bank 1,372,608  9.650 %  568,942  4.000 %  711,177  5.000 %

(1) March 31, 2025 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 2024 Annual Report on Form 10-K.

Northwest Bancshares, Inc. and Subsidiaries

Marketable Securities (Unaudited)

(dollars in thousands)  March 31, 2025 Marketable securities available-for-sale  Amortized cost  Gross unrealized

holding gains  Gross unrealized

holding losses  Fair value  Weighted average
duration Debt issued by the U.S. government and agencies:  Due after ten years  $              44,404  —  (8,913)  35,491  5.96  Debt issued by government sponsored enterprises:  Due after one year through five years  106  —  (4)  102  1.73  Municipal securities:  Due after one year through five years  848  11  —  859  1.45 Due after five years through ten years  17,783  120  (1,947)  15,956  7.34 Due after ten years  50,075  82  (8,823)  41,334  9.97  Corporate debt issues:  Due after one year through five years  5,486  1  (58)  5,429  2.59 Due after five years through ten years  19,968  773  (57)  20,684  3.74 Due after ten years  3,000  5  —  3,005  4.28  Mortgage-backed agency securities:  Fixed rate pass-through  240,994  1,176  (13,799)  228,371  6.55 Variable rate pass-through  3,521  57  (3)  3,575  3.42 Fixed rate agency CMOs  874,552  1,613  (121,492)  754,673  4.64 Variable rate agency CMOs  44,023  28  (145)  43,906  6.34 Total mortgage-backed agency securities  1,163,090  2,874  (135,439)  1,030,525  5.13 Total marketable securities available-for-sale  $         1,304,760  3,866  (155,241)  1,153,385  5.32  Marketable securities held-to-maturity  Government sponsored  Due in one year or less  $              16,478  —  (497)  15,981  0.98 Due after one year through five years  107,985  —  (11,667)  96,318  3.70  Mortgage-backed agency securities:  Fixed rate pass-through  129,505  —  (17,095)  112,410  4.70 Variable rate pass-through  356  2  —  358  5.41 Fixed rate agency CMOs  481,057  —  (68,846)  412,211  5.99 Variable rate agency CMOs  528  —  (3)  525  4.51 Total mortgage-backed agency securities  611,446  2  (85,944)  525,504  5.71 Total marketable securities held-to-maturity  $            735,909  2  (98,108)  637,803  5.31

Northwest Bancshares, Inc. and Subsidiaries

Asset Quality (Unaudited)

(dollars in thousands)  March 31,
2025  December 31,
2024  September 30,
2024  June 30,
2024  March 31,
2024 Nonaccrual loans:  Residential mortgage loans $           7,025  6,951  7,541  6,403  7,109 Home equity loans 3,004  3,332  4,041  4,055  4,409 Consumer loans 5,201  5,028  5,205  4,609  4,629 Commercial real estate loans 31,763  36,967  43,471  74,972  74,452 Commercial loans 11,757  9,123  16,570  12,120  4,461 Total nonaccrual loans 58,750  61,401  76,828  102,159  95,060 Loans 90 days past due and still accruing 603  656  1,045  2,511  2,452 Nonperforming loans 59,353  62,057  77,873  104,670  97,512 Real estate owned, net 80  35  76  74  50 Other nonperforming assets (1) 16,102  16,102  —  —  — Nonperforming assets $         75,535  78,194  77,949  104,744  97,562  Nonperforming loans to total loans 0.53 %  0.56 %  0.69 %  0.92 %  0.85 % Nonperforming assets to total assets 0.52 %  0.54 %  0.54 %  0.73 %  0.67 % Allowance for credit losses to total loans 1.09 %  1.04 %  1.11 %  1.10 %  1.09 % Allowance for credit losses to nonperforming loans 206.91 %  188.24 %  161.56 %  119.49 %  128.08 %

(1)  Other nonperforming assets includes nonaccrual loans held-for-sale.

Northwest Bancshares, Inc. and Subsidiaries

Loans by Credit Quality Indicators (Unaudited)

(dollars in thousands)  At March 31, 2025  Pass  Special

mention *  Substandard **  Doubtful  Loss  Loans

receivable Personal Banking:  Residential mortgage loans  $       3,110,770  —  10,877  —  —  3,121,647 Home equity loans  1,138,367  —  3,210  —  —  1,141,577 Consumer loans  2,075,719  —  5,750  —  —  2,081,469 Total Personal Banking  6,324,856  —  19,837  —  —  6,344,693 Commercial Banking:  Commercial real estate loans  2,497,722  86,779  208,233  —  —  2,792,734 Commercial loans  1,964,699  63,249  51,070  —  —  2,079,018 Total Commercial Banking  4,462,421  150,028  259,303  —  —  4,871,752 Total loans  $     10,787,277  150,028  279,140  —  —  11,216,445 At December 31, 2024  Personal Banking:  Residential mortgage loans  $       3,167,447  —  10,822  —  —  3,178,269 Home equity loans  1,145,856  —  3,540  —  —  1,149,396 Consumer loans  1,989,479  —  5,606  —  —  1,995,085 Total Personal Banking  6,302,782  —  19,968  —  —  6,322,750 Commercial Banking:  Commercial real estate loans  2,571,915  72,601  205,346  —  —  2,849,862 Commercial loans  1,923,382  37,063  46,957  —  —  2,007,402 Total Commercial Banking  4,495,297  109,664  252,303  —  —  4,857,264 Total loans  $     10,798,079  109,664  272,271  —  —  11,180,014 At September 30, 2024  Personal Banking:  Residential mortgage loans  $       3,237,357  —  11,431  —  —  3,248,788 Home equity loans  1,162,951  —  4,251  —  —  1,167,202 Consumer loans  1,992,110  —  5,922  —  —  1,998,032 Total Personal Banking  6,392,418  —  21,604  —  —  6,414,022 Commercial Banking:  Commercial real estate loans  2,634,987  87,693  271,699  —  —  2,994,379 Commercial loans  1,808,433  51,714  26,640  —  —  1,886,787 Total Commercial Banking  4,443,420  139,407  298,339  —  —  4,881,166 Total loans  $     10,835,838  139,407  319,943  —  —  11,295,188 At June 30, 2024  Personal Banking:  Residential mortgage loans  $       3,303,603  —  11,700  —  —  3,315,303 Home equity loans  1,176,187  —  4,299  —  —  1,180,486 Consumer loans  2,074,869  —  5,189  —  —  2,080,058 Total Personal Banking  6,554,659  —  21,188  —  —  6,575,847 Commercial Banking:  Commercial real estate loans  2,682,086  130,879  213,993  —  —  3,026,958 Commercial loans  1,673,052  47,400  21,662  —  —  1,742,114 Total Commercial Banking  4,355,138  178,279  235,655  —  —  4,769,072 Total loans  $     10,909,797  178,279  256,843  —  —  11,344,919 At March 31, 2024  Personal Banking:  Residential mortgage loans  $       3,362,439  —  12,541  —  —  3,374,980 Home equity loans  1,191,957  —  4,650  —  —  1,196,607 Consumer loans  2,113,050  —  5,317  —  —  2,118,367 Total Personal Banking  6,667,446  —  22,508  —  —  6,689,954 Commercial Banking:  Commercial real estate loans  2,714,643  131,247  182,424  —  —  3,028,314 Commercial loans  1,698,519  52,461  23,916  —  —  1,774,896 Total Commercial Banking  4,413,162  183,708  206,340  —  —  4,803,210 Total loans  $     11,080,608  183,708  228,848  —  —  11,493,164

*        Includes $4.7 million, $2.7 million, $2.9 million, $2.5 million, and $2.4 million of acquired loans at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. **       Includes $18.0 million, $19.8 million, $26.0 million, $24.3 million, and $27.2 million of acquired loans at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.

Northwest Bancshares, Inc. and Subsidiaries

Loan Delinquency (Unaudited)

(dollars in thousands)  March 31, 
2025  *  December 31,

2024  *  September 30,

2024  *  June 30,

2024  *  March 31,

2024  *  Loans delinquent 30 days to 59 days:  Residential mortgage loans $       32,840  1.0 %  $            28,690  0.9 %  $                 685  — %  $           616  — %  $       38,502  1.1 % Home equity loans 3,882  0.3 %  5,365  0.5 %  3,907  0.3 %  3,771  0.3 %  4,608  0.4 % Consumer loans 8,792  0.4 %  11,102  0.6 %  10,777  0.5 %  10,372  0.5 %  9,911  0.5 % Commercial real estate loans 8,536  0.3 %  5,215  0.2 %  5,919  0.2 %  4,310  0.1 %  6,396  0.2 % Commercial loans 6,841  0.3 %  5,632  0.3 %  3,260  0.2 %  4,366  0.3 %  3,091  0.2 % Total loans delinquent 30 days to 59 days $       60,891  0.5 %  $            56,004  0.5 %  $            24,548  0.2 %  $       23,435  0.2 %  $       62,508  0.5 %  Loans delinquent 60 days to 89 days:  Residential mortgage loans $         3,074  0.1 %  $            10,112  0.3 %  $              9,027  0.3 %  $         8,223  0.2 %  $             70  — % Home equity loans 1,290  0.1 %  1,434  0.1 %  882  0.1 %  1,065  0.1 %  761  0.1 % Consumer loans 2,808  0.1 %  3,640  0.2 %  3,600  0.2 %  3,198  0.2 %  2,545  0.1 % Commercial real estate loans 2,001  0.1 %  915  — %  7,643  0.3 %  3,155  0.1 %  807  — % Commercial loans 2,676  0.1 %  1,726  0.1 %  753  — %  8,732  0.5 %  1,284  0.1 % Total loans delinquent 60 days to 89 days $       11,849  0.1 %  $            17,827  0.2 %  $            21,905  0.2 %  $       24,373  0.2 %  $         5,467  — %  Loans delinquent 90 days or more: **  Residential mortgage loans $         4,005  0.1 %  $              4,931  0.2 %  $              5,370  0.2 %  $         5,553  0.2 %  $         5,813  0.2 % Home equity loans 1,893  0.2 %  2,250  0.2 %  2,558  0.2 %  2,506  0.2 %  2,823  0.2 % Consumer loans 4,026  0.2 %  3,967  0.2 %  3,983  0.2 %  3,012  0.1 %  3,345  0.2 % Commercial real estate loans 23,433  0.8 %  7,702  0.3 %  6,167  0.2 %  6,034  0.2 %  6,931  0.2 % Commercial loans 5,994  0.3 %  7,335  0.4 %  14,484  0.8 %  3,385  0.2 %  3,421  0.2 % Total loans delinquent 90 days or more $       39,351  0.3 %  $            26,185  0.2 %  $            32,562  0.3 %  $       20,490  0.2 %  $       22,333  0.2 %  Total loans delinquent $     112,091  1.0 %  $          100,016  0.9 %  $            79,015  0.7 %  $       68,298  0.6 %  $       90,308  0.8 %

*      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, $0.2 million, $0.2 million, $0.1 million, and $0.4 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.

Northwest Bancshares, Inc. and Subsidiaries

Allowance for Credit Losses (Unaudited)

(dollars in thousands)  Quarter ended March 31,
2025  December 31,
2024  September 30,
2024  June 30,
2024  March 31,
2024 Beginning balance $      116,819  125,813  125,070  124,897  125,243 Provision 8,256  15,549  5,727  2,169  4,234 Charge-offs residential mortgage (588)  (176)  (255)  (252)  (162) Charge-offs home equity (273)  (197)  (890)  (237)  (412) Charge-offs consumer (3,805)  (4,044)  (3,560)  (2,561)  (4,573) Charge-offs commercial real estate (116)  (13,997)  (475)  (500)  (349) Charge-offs commercial (571)  (10,400)  (1,580)  (1,319)  (1,163) Recoveries 3,087  4,271  1,776  2,873  2,079 Ending balance $      122,809  116,819  125,813  125,070  124,897 Net charge-offs to average loans, annualized 0.08 %  0.87 %  0.18 %  0.07 %  0.16 %

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  March 31, 2025  December 31, 2024  September 30, 2024  June 30, 2024  March 31, 2024 Average

balance  Interest  Avg.
yield/

cost  Average

balance  Interest  Avg.

yield/

cost  Average

balance  Interest  Avg.

yield/

cost   Average

balance  Interest  Avg.

yield/

cost  Average

balance  Interest  Avg.

yield/

cost Assets:  Interest-earning assets:  Residential mortgage loans $  3,155,738  30,394  3.85 %  $  3,215,596  31,107  3.87 %  $  3,286,316  31,537  3.84 %  $  3,342,749  32,182  3.85 %  $  3,392,524  32,674  3.85 % Home equity loans 1,139,728  16,164  5.75 %  1,154,456  16,801  5.79 %  1,166,866  17,296  5.90 %  1,183,497  17,303  5.88 %  1,205,273  17,294  5.77 % Consumer loans 1,948,230  26,273  5.47 %  1,918,356  26,293  5.45 %  1,955,988  26,034  5.29 %  2,048,396  26,334  5.17 %  2,033,620  25,033  4.95 % Commercial real estate loans 2,879,607  56,508  7.85 %  2,983,946  46,933  6.15 %  2,995,032  47,473  6.31 %  3,023,762  45,658  5.97 %  2,999,224  43,425  5.73 % Commercial loans 2,053,213  36,012  7.02 %  1,932,427  35,404  7.17 %  1,819,400  34,837  7.62 %  1,770,345  33,229  7.43 %  1,714,667  31,857  7.35 % Total loans receivable (a) (b) (d) 11,176,516  165,351  6.00 %  11,204,781  156,538  5.56 %  11,223,602  157,177  5.57 %  11,368,749  154,706  5.47 %  11,345,308  150,283  5.33 % Mortgage-backed securities (c) 1,773,402  11,730  2.65 %  1,769,151  11,514  2.60 %  1,735,728  10,908  2.51 %  1,734,085  9,426  2.17 %  1,717,306  7,944  1.85 % Investment securities (c) (d) 263,825  1,599  2.43 %  264,840  1,575  2.38 %  263,127  1,504  2.29 %  287,262  1,316  1.83 %  333,752  1,430  1.71 % FHLB stock, at cost 20,862  366  7.11 %  21,237  392  7.35 %  20,849  394  7.51 %  25,544  498  7.84 %  32,249  607  7.57 % Other interest-earning deposits 243,412  2,415  3.97 %  132,273  1,554  4.60 %  173,770  2,312  5.29 %  135,520  1,791  5.23 %  61,666  832  5.34 % Total interest-earning assets 13,478,017  181,461  5.46 %  13,392,282  171,573  5.10 %  13,417,076  172,295  5.11 %  13,551,160  167,737  4.98 %  13,490,281  161,096  4.80 % Noninterest-earning assets (e) 924,466      930,582      934,593      907,432      918,331  Total assets $   14,402,483      $   14,322,864      $   14,351,669      $   14,458,592      $   14,408,612  Liabilities and shareholders' equity:  Interest-bearing liabilities:  Savings deposits $  2,194,305  6,452  1.19 %  $  2,152,955  6,549  1.21 %  $  2,151,933  6,680  1.23 %  $  2,144,278  5,957  1.12 %  $  2,122,035  5,036  0.95 % Interest-bearing demand deposit 2,593,228  7,063  1.10 %  2,636,279  7,894  1.19 %  2,567,682  7,452  1.15 %  2,555,863  6,646  1.05 %  2,538,823  5,402  0.86 % Money market deposit accounts 2,082,948  9,306  1.81 %  1,980,769  8,880  1.78 %  1,966,684  9,170  1.85 %  1,957,990  8,601  1.77 %  1,961,332  7,913  1.62 % Time deposits 2,629,388  24,504  3.78 %  2,671,343  27,531  4.10 %  2,830,737  30,896  4.34 %  2,832,720  31,550  4.48 %  2,697,983  29,335  4.37 % Total interesting bearing deposits (g) 9,499,869  47,325  2.02 %  9,441,346  50,854  2.14 %  9,517,036  54,198  2.27 %  9,490,851  52,754  2.24 %  9,320,173  47,686  2.07 % Borrowed funds (f) 224,122  2,206  3.99 %  222,506  2,246  4.02 %  220,677  2,266  4.09 %  323,191  3,662  4.56 %  469,697  5,708  4.89 % Subordinated debt 114,576  1,148  4.01 %  114,488  1,148  4.01 %  114,396  1,148  4.01 %  114,308  1,148  4.02 %  114,225  1,148  4.02 % Junior subordinated debentures 129,856  2,098  6.46 %  129,791  2,277  6.87 %  129,727  2,467  7.56 %  129,663  2,449  7.47 %  129,597  2,459  7.51 % Total interest-bearing liabilities 9,968,423  52,777  2.15 %  9,908,131  56,525  2.27 %  9,981,836  60,079  2.39 %  10,058,013  60,013  2.40 %  10,033,692  57,001  2.28 % Noninterest-bearing demand deposits (g) 2,588,502      2,587,071      2,579,775      2,595,511      2,567,781  Noninterest-bearing liabilities 228,947      238,434      217,161      263,634      257,269  Total liabilities 12,785,872      12,733,636      12,778,772      12,917,158      12,858,742  Shareholders' equity 1,616,611      1,589,228      1,572,897      1,541,434      1,549,870  Total liabilities and shareholders' equity $   14,402,483      $   14,322,864      $   14,351,669      $   14,458,592      $   14,408,612  Net interest income/Interest rate spread FTE   128,684  3.31 %    115,048  2.83 %    112,216  2.72 %    107,724  2.58 %    104,095  2.52 % Net interest-earning assets/Net interest margin FTE $  3,509,594    3.87 %  $  3,484,151    3.42 %  $  3,435,240    3.33 %  $  3,493,147    3.20 %  $  3,456,589    3.10 % Tax equivalent adjustment (d)   866      851      914      883      857  Net interest income, GAAP basis   127,818      114,197      111,302      106,841      103,238  Ratio of interest-earning assets to interest-bearing liabilities 1.35X      1.35X      1.34X      1.35X      1.34X

(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 total deposits were 1.59%, 1.68%, 1.78%, 1.76%, and 1.61%, respectively. Cision

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SOURCE Northwest Bancshares, Inc.

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