EX-99.1 2 a2025-03x31nwbi8ker.htm EX-99.1

EXHIBIT 99.1

 

PRESS RELEASE OF NORTHWEST BANCSHARES, INC.

EARNINGS RELEASE

 

FOR IMMEDIATE RELEASE

 

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

 

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

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.

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.”

“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.”

1

---

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:

2

---

•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.

3

---

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.

 

#                      #                      #

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.

4

---

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.

5

---

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.

6

---

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

7

---

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.

8

---

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.

9

---

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.

10

---

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

11

---

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.

12

---

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.

13

---

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.

14

---

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		%

15

---

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.

16