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 mergerTotal revenue grew 19% from first quarter 20243rd consecutive quarter of reduced costs of fundsCredit quality remains stable with nonperforming assets at 0.52% of total assets, /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." "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.# # #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) 726-2140Media 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 andloss 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 andloss 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 averageduration 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. SOURCE Northwest Bancshares, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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

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