Northwest Bancshares, Inc. Announces Fourth Quarter 2024 net income of $33 million, or $0.26 per diluted share

Adjusted net income (non-GAAP) of $35 million, or $0.27 per diluted shareNet interest margin expands 9 basis points to 3.42%, inclusive of 6bps from an interest recoveryEfficiency ratio improved to 61.8%121st consecutive quarterly dividend of $0.20 per share declared, /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (Nasdaq: NWBI) announced net income for the quarter ended December 31, 2024 of $33 million, or $0.26 per diluted share. This represents an increase of $4 million compared to the same quarter last year, when net income was $29 million, or $0.23 per diluted share, and a decrease of $1 million compared to the prior quarter, when net income was $34 million, or $0.26 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended December 31, 2024 were 8.20% and 0.91% compared to 7.64% and 0.80% for the same quarter last year and 8.50% and 0.93% from the prior quarter. (PRNewsfoto/Northwest Bancshares, Inc.) Compared to adjusted net income (non-GAAP) of $34 million, or $0.26 per diluted share in the prior quarter, adjusted net income (non-GAAP) increased by $1 million to $35 million, or $0.27 per diluted share for the quarter ended December 31, 2024. This increase was driven by an increase in noninterest income which was offset by an increase in provision expense of $17 million for the quarter ended December 31, 2024 compared to $4.9 million for the quarter ended September 30, 2024. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended December 31, 2024 were 8.71% and 0.97% compared to 8.51% and 0.93% 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 February 14, 2025 to shareholders of record as of February 3, 2025. This is the 121st consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of December 31, 2024, this represents an annualized dividend yield of approximately 6.1%. Remarking on the results, President and CEO Louis J. Torchio said, "We are pleased with our fourth quarter earnings, which demonstrate the success of our business model focused on strategic growth and transformation. Our focus on commercial banking and deposit growth has delivered an increase in average C&I loans and sustainable deposit generation while maintaining a stable cost of funds. We've entered 2025 with significant momentum driven by improvements in our net interest margin and efficiency ratio, thanks to the commitment of our entire team to produce results while managing risks and taking care of our customers.Notably in the fourth quarter, we were pleased to announce that we entered into an agreement to acquire Penns Woods Bancorp, Inc. expected to close in the third quarter of 2025, subject to customary closing conditions. This transaction marks another milestone in our long-term growth strategy and will place Northwest in the nation's top 100 largest banks. Our combination of companies will be strongly positioned to serve communities that are familiar to Northwest while also expanding into new markets across North Central and Northeastern Pennsylvania. We look forward to continuing our long-standing tradition of customer-focused banking in these new markets and across the entire Northwest footprint.I am pleased to announce that for the 121st consecutive quarter, we will provide a $0.20 per share dividend, which demonstrates our continued commitment to providing value to our shareholders. Our dedication to financial stability, outstanding performance and sustainable growth remains steadfast this year, as we work to deliver benefits to our shareholders, customers, and communities."Balance Sheet Highlights Dollars in thousands Change 4Q24 vs. 4Q24 3Q24 4Q23 3Q24 4Q23 Average loans receivable $ 11,204,781 11,223,602 11,251,717 (0.2) % (0.4) % Average investments 2,033,991 1,998,855 2,076,808 1.8 % (2.1) % Average deposits 12,028,417 12,096,811 11,796,193 (0.6) % 2.0 % Average borrowed funds 222,506 220,677 548,089 0.8 % (59.4) % Average loans receivable decreased $47 million from the quarter ended December 31, 2023 driven by our personal banking portfolio, which decreased by $448 million as cash flows from this portfolio were reinvested in our commercial portfolios. This was partially offset by a growth in our commercial banking portfolio, which grew by $401 million in total, including a $368 million increase in our commercial and industrial portfolio as we have continued to build-out our commercial lending verticals. Compared to the third quarter of 2024, average loans receivable decreased by $19 million. Growth was muted in the quarter as we continue to reinvest cash flows from our personal banking portfolio into our commercial banking portfolio and focus on profitability and credit discipline. Average investments declined $43 million from the quarter ended December 31, 2023 and increased $35 million from the quarter ended September 30, 2024. The decline from the prior year was driven by the investment portfolio restructure which occurred in the second quarter as a portion of the proceeds from the investment sale were used to reduce outstanding borrowings. The growth in average investments compared to the third 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 $232 million from the quarter ended December 31, 2023, driven by a $224 million increase in our average time deposits as we competitively positioned our deposit products over the last year. This increase was partially offset by a decrease in money market balances as customers shifted balances into higher yielding time deposit accounts. Compared to the third quarter of 2024, average deposits declined $68 million, driven by a $159 million decrease in time deposits due a decline in the need for brokered CDs. This was partially offset by a $69 million increase in our average interest-bearing checking deposits. Average borrowings saw a reduction of $326 million compared to the quarter ended December 31, 2023 and a $2 million increase compared to the quarter ended September 30, 2024. The decrease in average borrowings is primarily attributable to the pay-down of wholesale borrowings made possible by the increase in the average balance of deposits noted above coupled with the proceeds from our investment portfolio restructuring. Income Statement Highlights Dollars in thousands Change 4Q24 vs. 4Q24 3Q24 4Q23 3Q24 4Q23 Interest income $ 170,722 171,381 157,388 (0.4) % 8.5 % Interest expense 56,525 60,079 51,086 (5.9) % 10.6 % Net interest income $ 114,197 111,302 106,302 2.6 % 7.4 % Net interest margin 3.42 % 3.33 % 3.16 % Compared to the quarter ended December 31, 2023, net interest income increased $8 million and net interest margin increased to 3.42% from 3.16% for the quarter ended December 31, 2023. This increase in net interest income resulted primarily from: A $13 million increase in interest income that was the result of cash and marketable securities being redeployed into higher yielding loans. Driven by higher market interest rates, the average yield on loans improved to 5.56% for the quarter ended December 31, 2024 from 5.19% for the quarter ended December 31, 2023. This increase includes an interest recovery of $2.1 million on a non-accrual commercial loan payoff. Excluding this interest recovery, the adjusted yield on loans for the quarter ended December 31, 2024 was 5.48% and the adjusted net interest margin was 3.36%. A $5 million increase in interest expense as the result of higher costs of deposits due to the higher interest rate environment and competitive pressure for liquidity. The cost of interest-bearing liabilities increased to 2.27% for the quarter ended December 31, 2024 from 2.04% for the quarter ended December 31, 2023. Compared to the quarter ended September 30, 2024, net interest income increased $3 million and net interest margin increased to 3.42% for the quarter ended December 31, 2024 from 3.33% for the quarter ended September 30, 2024. This increase in net interest income resulted from the following: A $4 million decrease in interest expense driven by lower interest expense on deposits as average yield improved compared to the prior quarter to 2.14% from 2.27% for the quarter ended September 30, 2024. A $1 decrease in interest income, as lower interest yields were partially offset by an interest recovery of $2.1 million on a non-accrual commercial loan payoff. Dollars in thousands Change 4Q24 vs. 4Q24 3Q24 4Q23 3Q24 4Q23 Provision for credit losses - loans $ 15,549 5,727 3,801 171.5 % 309.1 % Provision for credit losses - unfunded commitments 1,016 (852) 4,145 219.2 % (75.5) % Total provision for credit losses expense $ 16,565 4,875 7,946 239.8 % 108.5 % Net charge-offs to average loans, annualized 0.87 % 0.18 % 0.12 % During the quarter the Company took several steps 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 of December 31, 2024. 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. Additionally, the Company saw a decrease in classified loans to $272 million, or 2.44% of total loans, at December 31, 2024 from $320 million, or 2.83% of total loans, at September 30, 2024.The total provision for credit losses for the quarter ended December 31, 2024 was $16.6 million primarily driven by the elevated charge-offs discussed above, coupled with growth in our commercial lending portfolio and changes in the economic forecasts in the current period. Dollars in thousands Change 4Q24 vs. 4Q24 3Q24 4Q23 3Q24 4Q23 Noninterest income: Loss on sale of investments $ — — (1) NA NA Gain on sale of loans — — 726 NA NA Gain on sale of SBA loans 822 667 388 23.2 % 111.9 % Service charges and fees 15,975 15,932 15,922 0.3 % 0.3 % Trust and other financial services income 7,485 7,924 6,884 (5.5) % 8.7 % Gain on real estate owned, net 238 105 1,084 126.7 % (78.0) % Income from bank-owned life insurance 2,020 1,434 1,454 40.9 % 38.9 % Mortgage banking income 224 744 247 (69.9) % (9.3) % Other operating income 13,299 1,027 2,465 1194.9 % 439.5 % Total noninterest income $ 40,063 27,833 29,169 43.9 % 37.3 % Noninterest income increased from the quarter ended December 31, 2023 by $11 million and from the quarter ended September 30, 2024 by $12 million due primarily to an increase 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. Dollars in thousands Change 4Q24 vs. 4Q24 3Q24 4Q23 3Q24 4Q23 Noninterest expense: Personnel expense $ 53,198 56,186 50,194 (5.3) % 6.0 % Non-personnel expense 42,128 34,581 40,482 21.8 % 4.1 % Total noninterest expense $ 95,326 90,767 90,676 5.0 % 5.1 % Noninterest expense increased from the quarter ended December 31, 2023 due to a $3 million increase in personnel expenses driven by an increase in incentive compensation and contract employee expense during the quarter.Compared to the quarter ended September 30, 2024, noninterest expense increased due to a $3 million decrease in personnel expense driven by a decline in contract employee expense and employee benefit expenses, which were more than offset by an increase in non-personnel expense of $8 million due to $3 million of merger and restructuring expenses in the current quarter as well as an increase in processing and other expense due to technology investments and the timing of charitable contributions. Dollars in thousands Change 4Q24 vs. 4Q24 3Q24 4Q23 3Q24 4Q23 Income before income taxes $ 42,369 43,493 36,849 (2.6) % 15.0 % Income tax expense 9,619 9,875 7,835 (2.6) % 22.8 % Net income $ 32,750 33,618 29,014 (2.6) % 12.9 % The provision for income taxes increased by $2 million from the quarter ended December 31, 2023 and remained flat from the quarter ended September 30, 2024 primarily due to the quarterly change in income before income taxes.Net income increased from the quarter ended December 31, 2023, due to the factors discussed above, and decreased from the quarter ended September 30, 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 December 31, 2024, Northwest operated 130 full-service financial centers and eleven free standing drive-up facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.'s common stock is listed on The Nasdaq Stock Market LLC ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed online at www.northwest.com.Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without 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 and benefits 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: (1) the businesses of the Company and Penns Woods may not be integrated successfully or such integration may take longer to accomplish than expected; (2) the expected cost savings and any revenue synergies from the proposed merger may not be fully realized within the expected timeframes; (3) disruption from the proposed merger may make it more difficult to maintain relationships with clients, associates, or suppliers; (4) the required governmental approvals of the proposed merger may not be obtained on the expected terms and schedule; and (5) Penns Woods' shareholders may not approve the proposed merger and the merger agreement. 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.Additional Information about the Merger and Where to Find It - This news release does not constitute an offer to sell or the solicitation of an offer to buy securities of the Company. In connection with the proposed merger, the Company will file with the Securities and Exchange Commission ("SEC") a Registration Statement on Form S-4 that will include a proxy statement of Penns Woods, and a prospectus of the Company, as well as other relevant documents concerning the proposed transaction. INVESTORS AND SHAREHOLDERS OF PENNS WOODS, AND OTHER INTERESTED PARTIES ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The Proxy Statement/Prospectus will be mailed to shareholders of Penns Woods prior to the shareholder meeting, which has not yet been scheduled. In addition, when the Registration Statement on Form S-4, which will include the Proxy Statement/Prospectus, and other related documents are filed by the Company with the SEC, it may be obtained for free at the SEC's website at www.sec.gov, and from either the Company's website at www.northwest.bank or Penns Woods' website at www.pwod.com.Participants in the Solicitation - The Company, Penns Woods, and their respective executive officers and directors may be deemed to be participants in the solicitation of proxies from the shareholders of the Company and Penns Woods in connection with the proposed merger. Information about the directors and executive officers of the Company is set forth in the proxy statement for the Company's 2024 annual meeting of shareholders, as filed with the SEC on March 8, 2024. Information about the directors and executive officers of Penns Woods is set forth in the proxy statement for Penns Woods's 2024 annual meeting of shareholders, as filed with the SEC on March 26, 2024. Information about any other persons who may, under the rules of the SEC, be considered participants in the solicitation of shareholders of Penns Woods in connection with the proposed merger will be included in the Proxy Statement/Prospectus. You can obtain free copies of these documents from the SEC, the Company, or Penns Woods using the website information above. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.PENNS WOODS SHAREHOLDERS AND INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN IT BECOMES AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS WITH RESPECT TO THE PROPOSED MERGER. Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) (dollars in thousands, except per share amounts) December 31,2024 September 30,2024 December 31,2023 Assets Cash and cash equivalents $ 288,378 226,883 122,260 Marketable securities available-for-sale (amortized cost of $1,278,665, $1,248,104 and $1,240,003, respectively) 1,108,944 1,111,868 1,043,359 Marketable securities held-to-maturity (fair value of $637,948, $672,641 and $699,506, respectively) 750,586 766,772 814,839 Total cash and cash equivalents and marketable securities 2,147,908 2,105,523 1,980,458 Loans held-for-sale 76,331 9,370 8,768 Residential mortgage loans 3,178,269 3,248,788 3,419,417 Home equity loans 1,149,396 1,167,202 1,227,858 Consumer loans 1,995,085 1,998,032 2,126,027 Commercial real estate loans 2,849,862 2,994,379 2,974,010 Commercial loans 2,007,402 1,886,787 1,658,729 Total loans receivable 11,180,014 11,295,188 11,406,041 Allowance for credit losses (116,819) (125,813) (125,243) Loans receivable, net 11,063,195 11,169,375 11,280,798 FHLB stock, at cost 21,006 21,223 30,146 Accrued interest receivable 46,356 46,678 47,353 Real estate owned, net 35 76 104 Premises and equipment, net 124,246 126,391 138,838 Bank-owned life insurance 253,137 255,324 251,895 Goodwill 380,997 380,997 380,997 Other intangible assets, net 2,837 3,363 5,290 Other assets 292,176 236,005 294,458 Total assets $ 14,408,224 14,354,325 14,419,105 Liabilities and shareholders' equity Liabilities Noninterest-bearing demand deposits $ 2,621,415 2,581,769 2,669,023 Interest-bearing demand deposits 2,666,504 2,676,779 2,634,546 Money market deposit accounts 2,007,739 1,956,747 1,968,218 Savings deposits 2,171,251 2,145,735 2,105,234 Time deposits 2,677,645 2,710,049 2,602,881 Total deposits 12,144,554 12,071,079 11,979,902 Borrowed funds 200,331 204,374 398,895 Subordinated debt 114,538 114,451 114,189 Junior subordinated debentures 129,834 129,769 129,574 Advances by borrowers for taxes and insurance 42,042 24,700 45,253 Accrued interest payable 6,935 15,125 13,669 Other liabilities 173,134 203,502 186,306 Total liabilities 12,811,368 12,763,000 12,867,788 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, 127,508,003, 127,400,199 and 127,110,453 shares issued and outstanding, respectively 1,275 1,274 1,271 Additional paid-in capital 1,033,385 1,030,384 1,024,852 Retained earnings 673,110 665,845 674,686 Accumulated other comprehensive loss (110,914) (106,178) (149,492) Total shareholders' equity 1,596,856 1,591,325 1,551,317 Total liabilities and shareholders' equity $ 14,408,224 14,354,325 14,419,105 Equity to assets 11.08 % 11.09 % 10.76 % Tangible common equity to tangible assets* 8.65 % 8.64 % 8.30 % Book value per share $ 12.52 12.49 12.20 Tangible book value per share* $ 9.51 9.47 9.17 Closing market price per share $ 13.19 13.38 12.48 Full time equivalent employees 1,956 1,975 2,098 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 December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 Interest income: Loans receivable $ 155,838 156,413 153,954 149,571 146,523 Mortgage-backed securities 11,515 10,908 9,426 7,944 7,951 Taxable investment securities 910 842 728 794 786 Tax-free investment securities 515 512 457 491 492 FHLB stock dividends 392 394 498 607 666 Interest-earning deposits 1,552 2,312 1,791 832 970 Total interest income 170,722 171,381 166,854 160,239 157,388 Interest expense: Deposits 50,854 54,198 52,754 47,686 40,600 Borrowed funds 5,671 5,881 7,259 9,315 10,486 Total interest expense 56,525 60,079 60,013 57,001 51,086 Net interest income 114,197 111,302 106,841 103,238 106,302 Provision for credit losses - loans 15,549 5,727 2,169 4,234 3,801 Provision for credit losses - unfunded commitments 1,016 (852) (2,539) (799) 4,145 Net interest income after provision for credit losses 97,632 106,427 107,211 99,803 98,356 Noninterest income: Loss on sale of investments — — (39,413) — (1) Gain on sale of SBA loans 822 667 1,457 873 388 Gain on sale of loans — — — — 726 Service charges and fees 15,975 15,932 15,527 15,523 15,922 Trust and other financial services income 7,485 7,924 7,566 7,127 6,884 Gain on real estate owned, net 238 105 487 57 1,084 Income from bank-owned life insurance 2,020 1,434 1,371 1,502 1,454 Mortgage banking income 224 744 901 452 247 Other operating income 13,299 1,027 3,255 2,429 2,465 Total noninterest income/(loss) 40,063 27,833 (8,849) 27,963 29,169 Noninterest expense: Compensation and employee benefits 53,198 56,186 53,531 51,540 50,194 Premises and occupancy costs 7,263 7,115 7,464 7,627 7,049 Office operations 3,036 2,811 3,819 2,767 3,747 Collections expense 905 474 406 336 328 Processing expenses 15,361 14,570 14,695 14,725 15,017 Marketing expenses 2,327 2,004 2,410 2,149 1,317 Federal deposit insurance premiums 2,949 2,763 2,865 3,023 2,643 Professional services 3,788 3,302 3,728 4,065 6,255 Amortization of intangible assets 526 590 635 701 724 Real estate owned expense 38 23 57 66 51 Merger, asset disposition and restructuring expense 2,850 43 1,915 955 2,354 Other expenses 3,085 886 895 2,070 997 Total noninterest expense 95,326 90,767 92,420 90,024 90,676 Income before income taxes 42,369 43,493 5,942 37,742 36,849 Income tax expense 9,619 9,875 1,195 8,579 7,835 Net income $ 32,750 33,618 4,747 29,163 29,014 Basic earnings per share $ 0.26 0.26 0.04 0.23 0.23 Diluted earnings per share $ 0.26 0.26 0.04 0.23 0.23 Annualized return on average equity 8.20 % 8.50 % 1.24 % 7.57 % 7.64 % Annualized return on average assets 0.91 % 0.93 % 0.13 % 0.81 % 0.80 % Annualized return on average tangible common equity * 10.81 % 11.26 % 1.65 % 10.08 % 10.28 % Efficiency ratio 61.80 % 65.24 % 94.31 % 68.62 % 66.93 % Efficiency ratio, excluding certain items ** 59.61 % 64.78 % 65.41 % 67.35 % 64.66 % Annualized noninterest expense to average assets 2.65 % 2.52 % 2.57 % 2.51 % 2.51 % Annualized noninterest expense to average assets, excluding certain items** 2.55 % 2.50 % 2.50 % 2.47 % 2.43 % * 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 Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts) Year ended December 31, 2024 2023 Interest income: Loans receivable $ 615,776 543,659 Mortgage-backed securities 39,793 32,886 Taxable investment securities 3,274 3,258 Tax-free investment securities 1,975 2,350 FHLB stock dividends 1,891 2,868 Interest-earning deposits 6,487 2,901 Total interest income 669,196 587,922 Interest expense: Deposits 205,492 105,343 Borrowed funds 28,126 46,896 Total interest expense 233,618 152,239 Net interest income 435,578 435,683 Provision for credit losses - loans 27,679 18,664 Provision for credit losses - unfunded commitments (3,174) 4,210 Net interest income after provision for credit losses 411,073 412,809 Noninterest income: Loss on sale of investments (39,413) (8,307) Gain on sale of mortgage servicing rights — 8,305 Gain on sale of SBA loans 3,819 1,800 Gain on sale of loans — 726 Service charges and fees 62,957 59,214 Trust and other financial services income 30,102 27,284 Gain on real estate owned, net 887 2,006 Income from bank-owned life insurance 6,327 8,588 Mortgage banking income 2,321 2,431 Other operating income 20,010 11,776 Total noninterest income 87,010 113,823 Noninterest expense: Compensation and employee benefits 214,455 195,691 Premises and occupancy costs 29,469 29,151 Office operations 12,433 12,955 Collections expense 2,121 1,695 Processing expenses 59,351 58,687 Marketing expenses 8,890 9,444 Federal deposit insurance premiums 11,600 9,271 Professional services 14,883 17,819 Amortization of intangible assets 2,452 3,270 Real estate owned expense 184 456 Merger, asset disposition and restructuring expense 5,763 6,749 Other expenses 6,936 6,366 Total noninterest expense 368,537 351,554 Income before income taxes 129,546 175,078 Income tax expense 29,268 40,121 Net income $ 100,278 134,957 Basic earnings per share $ 0.79 1.06 Diluted earnings per share $ 0.79 1.06 Annualized return on average equity 6.41 % 8.94 % Annualized return on average assets 0.70 % 0.95 % Annualized return on tangible common equity * 8.51 % 12.02 % Efficiency ratio 70.52 % 63.98 % Efficiency ratio, excluding certain items ** 64.11 % 62.15 % Annualized noninterest expense to average assets 2.56 % 2.46 % Annualized noninterest expense to average assets, excluding certain items ** 2.50 % 2.39 % * Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items. ** Excludes loss on sale of investments, gain on sale of mortgage servicing rights, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items. Northwest Bancshares, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited) * (dollars in thousands, except per share amounts) Quarter ended Year ended December 31, December 31,2024 September 30,2024 December 31,2023 2024 2023 Reconciliation of net income to adjusted net income: Net income (GAAP) $ 32,750 33,618 29,014 100,278 134,957 Non-GAAP adjustments Add: merger, asset disposition and restructuring expense 2,850 43 2,354 5,763 6,749 Add: loss on the sale of investments — — 1 39,413 8,307 Less: gain on sale of mortgage servicing rights — — — — (8,305) Less: tax benefit of non-GAAP adjustments (798) (12) (659) (12,649) (1,890) Adjusted net income (non-GAAP) $ 34,802 33,649 30,710 132,805 139,818 Diluted earnings per share (GAAP) $ 0.26 0.26 0.23 0.79 1.06 Diluted adjusted earnings per share (non-GAAP) $ 0.27 0.26 0.24 1.04 1.10 Average equity $ 1,589,228 1,572,897 1,506,895 1,563,454 1,510,285 Average assets 14,322,864 14,351,669 14,329,020 14,385,171 14,269,809 Annualized return on average equity (GAAP) 8.20 % 8.50 % 7.64 % 6.41 % 8.94 % Annualized return on average assets (GAAP) 0.91 % 0.93 % 0.80 % 0.70 % 0.95 % Annualized return on average equity, excluding merger, asset disposition and restructuring expense, loss on the sale of investments and gain on sale of mortgage servicing rights, net of tax (non-GAAP) 8.71 % 8.51 % 8.09 % 8.49 % 9.26 % Annualized return on average assets, excluding merger, asset disposition and restructuring expense, loss on sale of investments, and gain on sale of mortgage servicing rights, net of tax (non-GAAP) 0.97 % 0.93 % 0.85 % 0.92 % 0.98 % 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. December 31,2024 September 30,2024 December 31,2023 Tangible common equity to assets Total shareholders' equity $ 1,596,856 1,591,325 1,551,317 Less: goodwill and intangible assets (383,834) (384,360) (386,287) Tangible common equity $ 1,213,022 1,206,965 1,165,030 Total assets $ 14,408,224 14,354,325 14,419,105 Less: goodwill and intangible assets (383,834) (384,360) (386,287) Tangible assets $ 14,024,390 13,969,965 14,032,818 Tangible common equity to tangible assets 8.65 % 8.64 % 8.30 % Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments Tangible common equity $ 1,213,022 1,206,965 1,165,030 Less: unrealized losses on held to maturity investments (112,638) (94,131) (115,334) Add: deferred taxes on unrealized losses on held to maturity investments 31,539 26,357 32,294 Tangible common equity, including unrealized losses on held-to-maturity investments $ 1,131,923 1,139,191 1,081,990 Tangible assets $ 14,024,390 13,969,965 14,032,818 Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments 8.07 % 8.15 % 7.71 % Tangible book value per share Tangible common equity $ 1,213,022 1,206,965 1,165,030 Common shares outstanding 127,508,003 127,400,199 127,110,453 Tangible book value per share 9.51 9.47 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 Year ended December 31, December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 2024 2023 Annualized return on average tangible common equity Net income $ 32,750 33,618 4,747 29,163 29,014 100,278 134,957 Average shareholders' equity 1,589,228 1,572,897 1,541,434 1,549,870 1,506,895 1,563,454 1,510,285 Less: average goodwill and intangible assets (384,178) (384,730) (385,364) (386,038) (386,761) (385,074) (387,961) Average tangible common equity $ 1,205,050 1,188,167 1,156,070 1,163,832 1,120,134 1,178,380 1,122,324 Annualized return on average tangible common equity 10.81 % 11.26 % 1.65 % 10.08 % 10.28 % 8.51 % 12.02 % 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 $ 95,326 90,767 92,420 90,024 90,676 368,537 351,554 Less: amortization expense (526) (590) (635) (701) (724) (2,452) (3,270) Less: merger, asset disposition and restructuring expenses (2,850) (43) (1,915) (955) (2,354) (5,763) (6,749) Non-interest expense, excluding amortization and merger, assets disposition and restructuring expenses $ 91,950 90,134 89,870 88,368 87,598 360,322 341,535 Net interest income $ 114,197 111,302 106,841 103,238 106,302 435,578 435,683 Non-interest income 40,063 27,833 (8,849) 27,963 29,169 87,010 113,823 Add: loss on the sale of investments — — 39,413 — 1 39,413 8,307 Less: gain on sale of mortgage servicing rights — — — — — — (8,305) Net interest income plus non-interest income, excluding loss on sale of investments and gain on sale of mortgage servicing rights $ 154,260 139,135 137,405 131,201 135,472 562,001 549,508 Efficiency ratio, excluding loss on sale of investments, gain on sale of mortgage servicing rights, amortization and merger, asset disposition and restructuring expenses 59.61 % 64.78 % 65.41 % 67.35 % 64.66 % 64.11 % 62.15 % Annualized non-interest expense to average assets, excluding amortization and merger, asset disposition and restructuring expense Non-interest expense excluding amortization and merger, asset disposition and restructuring expenses $ 91,950 90,134 89,870 88,368 87,598 360,322 341,535 Average assets 14,322,864 14,351,669 14,458,592 14,408,612 14,329,020 14,385,171 14,269,809 Annualized non-interest expense to average assets, excluding amortization and merger, asset disposition and restructuring expense 2.55 % 2.50 % 2.50 % 2.47 % 2.43 % 2.50 % 2.39 % * The table summarizes the Company's results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude merger, asset disposition and restructuring expense, loss on sale of investments and gain on sale of mortgage servicing rights. The net tax effect was calculated using statutory tax rates of approximately 28.0%. The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations. 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 December 31, 2024 Balance Percent of total deposits Number of relationships Uninsured deposits per the Call Report (1) $ 3,131,231 25.8 % 5,233 Less intercompany deposit accounts 1,244,219 10.3 % 11 Less collateralized deposit accounts 413,479 3.4 % 224 Uninsured deposits excluding intercompany and collateralized accounts $ 1,473,533 12.1 % 4,998 (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 $26.2 million, or 0.22% of total deposits, as of December 31, 2024. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $167.4 million, or 1.38% of total deposits, as of December 31, 2024. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $295,000 as of December 31, 2024.The following table provides additional details for the Company's deposit portfolio: As of December 31, 2024 Balance Percent of total deposits Number of accounts Personal noninterest bearing demand deposits $ 1,372,651 11.3 % 285,040 Business noninterest bearing demand deposits 1,248,764 10.3 % 43,062 Personal interest-bearing demand deposits 1,380,138 11.4 % 55,870 Business interest-bearing demand deposits 1,286,366 10.6 % 7,586 Personal money market deposits 1,431,088 11.8 % 24,665 Business money market deposits 576,651 4.7 % 2,701 Savings deposits 2,171,251 17.9 % 180,725 Time deposits 2,677,645 22.0 % 80,256 Total deposits $ 12,144,554 100.0 % 679,905 Our average deposit account balance as of December 31, 2024 was $18,000. The Company's insured cash sweep deposit balance was $551 million as of December 31, 2024.The following table provides additional details regarding the Company's deposit portfolio over time: 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Personal noninterest bearing demand deposits $ 1,397,167 1,375,144 1,357,875 1,369,294 1,350,520 1,316,845 1,372,651 Business noninterest bearing demand deposits 1,423,396 1,399,147 1,311,148 1,249,085 1,231,179 1,264,924 1,248,764 Personal interest-bearing demand deposits 1,535,254 1,477,617 1,464,058 1,427,140 1,396,825 1,340,668 1,380,138 Business interest-bearing demand deposits 624,252 689,914 812,433 805,069 815,358 955,120 978,002 Municipal demand deposits 418,147 430,549 358,055 325,657 353,567 380,991 308,364 Personal money market deposits 1,511,652 1,463,689 1,435,939 1,393,532 1,390,162 1,394,904 1,431,088 Business money market deposits 642,601 579,124 532,279 559,005 574,679 561,843 576,651 Savings deposits 2,120,215 2,116,360 2,105,234 2,156,048 2,148,727 2,145,735 2,171,251 Time deposits 1,989,711 2,258,338 2,602,881 2,786,814 2,826,362 2,710,049 2,677,645 Total deposits $ 11,662,395 11,789,882 11,979,902 12,071,644 12,087,379 12,071,079 12,144,554 Northwest Bancshares, Inc. and Subsidiaries Regulatory Capital Requirements (Unaudited) (dollars in thousands) At December 31, 2024 Actual (1) Minimum capital requirements (2) Well capitalized requirements Amount Ratio Amount Ratio Amount Ratio Total capital (to risk weighted assets) Northwest Bancshares, Inc. $ 1,704,207 16.019 % $ 1,117,037 10.500 % $ 1,063,844 10.000 % Northwest Bank 1,466,805 13.800 % 1,116,035 10.500 % 1,062,890 10.000 % Tier 1 capital (to risk weighted assets) Northwest Bancshares, Inc. 1,464,067 13.762 % 904,268 8.500 % 851,075 8.000 % Northwest Bank 1,341,203 12.618 % 903,457 8.500 % 850,312 8.000 % Common equity tier 1 capital (to risk weighted assets) Northwest Bancshares, Inc. 1,338,222 12.579 % 744,691 7.000 % 691,499 6.500 % Northwest Bank 1,341,203 12.618 % 744,023 7.000 % 690,879 6.500 % Tier 1 capital (leverage) (to average assets) Northwest Bancshares, Inc. 1,464,067 10.369 % 564,772 4.000 % 705,965 5.000 % Northwest Bank 1,341,203 9.496 % 564,936 4.000 % 706,170 5.000 % (1) December 31, 2024 figures are estimated. (2) Amounts and ratios include the capital conservation buffer of 2.5%, which does not apply to Tier 1 capital to average assets (leverage ratio). For further information related to the capital conservation buffer, see "Item 1. Business - Supervision and Regulation" of our 2023 Annual Report on Form 10-K. Northwest Bancshares, Inc. and Subsidiaries Marketable Securities (Unaudited) (dollars in thousands) December 31, 2024 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 $ 45,289 — (9,898) 35,391 5.99 Debt issued by government sponsored enterprises: Due after one year through five years 122 — (4) 118 1.91 Municipal securities: Due after one year through five years 888 10 (2) 896 1.57 Due after five years through ten years 16,662 4 (1,756) 14,910 7.43 Due after ten years 51,257 4 (8,440) 42,821 10.22 Corporate debt issues: Due in one year through five years 5,485 — (78) 5,407 4.40 Due after five years through ten years 19,944 815 (65) 20,694 4.41 Mortgage-backed agency securities: Fixed rate pass-through 237,892 106 (17,581) 220,417 5.85 Variable rate pass-through 3,738 54 (3) 3,789 3.84 Fixed rate agency CMOs 852,648 174 (132,989) 719,833 5.22 Variable rate agency CMOs 44,740 30 (102) 44,668 5.69 Total mortgage-backed agency securities 1,139,018 364 (150,675) 988,707 5.38 Total marketable securities available-for-sale $ 1,278,665 1,197 (170,918) 1,108,944 5.59 Marketable securities held-to-maturity Government sponsored Due after one year through five years $ 124,462 — (14,464) 109,998 3.58 Mortgage-backed agency securities: Fixed rate pass-through 132,816 — (20,181) 112,635 4.70 Variable rate pass-through 364 1 — 365 3.21 Fixed rate agency CMOs 492,415 — (77,989) 414,426 5.63 Variable rate agency CMOs 529 — (5) 524 4.54 Total mortgage-backed agency securities 626,124 1 (98,175) 527,950 5.43 Total marketable securities held-to-maturity $ 750,586 1 (112,639) 637,948 5.12 Northwest Bancshares, Inc. and Subsidiaries Borrowed Funds (Unaudited) (dollars in thousands) December 31, 2024 Amount Average rate Term notes payable to the FHLB of Pittsburgh, due within one year $ 175,000 4.64 % Collateralized borrowings, due within one year 22,323 1.73 % Collateral received, due within one year 3,008 4.65 % Subordinated debentures, net of issuance costs 114,538 4.28 % Junior subordinated debentures 129,834 6.85 % Total borrowed funds * $ 444,703 5.05 % * As of December 31, 2024, the Company had $3.2 billion of additional borrowing capacity available with the FHLB of Pittsburgh, including a $250 million overnight line of credit, which has no balance as of December 31, 2024, as well as $555 million of borrowing capacity available with the Federal Reserve Bank and $105 million with two correspondent banks. Northwest Bancshares, Inc. and Subsidiaries Analysis of Loan Portfolio by Loan Sector (Unaudited) Commercial real estate loans outstanding The following table provides the various loan sectors in our commercial real estate portfolio at December 31, 2024: Property type Percent of portfolio Retail Building 13.4 % 5 or more unit dwelling 13.3 Commercial office building - non-owner occupied 10.5 Nursing Home 10.4 Manufacturing & industrial building 5.8 Warehouse/storage building 4.3 Commercial office building - owner occupied 4.2 Multi-use building - commercial, retail and residential 4.2 Residential acquisition & development - 1-4 family, townhouses and apartments 4.1 Multi-use building - office and warehouse 3.5 Other medical facility 2.9 Single family dwelling 2.4 Student housing 2.4 Hotel/motel 2.3 Agricultural real estate 2.2 Commercial acquisition and development 2.0 All other 12.1 Total 100.0 % The following table describes the collateral of our commercial real estate portfolio by state at December 31, 2024: State Percent of portfolio New York 34.4 % Pennsylvania 29.6 Ohio 18.7 Indiana 8.3 All other 9.0 Total 100.0 % Northwest Bancshares, Inc. and Subsidiaries Asset Quality (Unaudited) (dollars in thousands) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 Nonaccrual loans current: Residential mortgage loans $ 487 1,585 1,563 1,351 959 Home equity loans 681 1,239 1,088 974 871 Consumer loans 991 1,229 1,268 1,295 1,051 Commercial real estate loans 28,571 36,735 66,181 66,895 64,603 Commercial loans 1,468 1,922 788 934 1,182 Total nonaccrual loans current $ 32,198 42,710 70,888 71,449 68,666 Nonaccrual loans delinquent 30 days to 59 days: Residential mortgage loans $ 644 37 100 1,454 933 Home equity loans 132 157 260 125 174 Consumer loans 342 227 305 294 225 Commercial real estate loans 420 362 699 574 51 Commercial loans 283 444 183 161 139 Total nonaccrual loans delinquent 30 days to 59 days $ 1,821 1,227 1,547 2,608 1,522 Nonaccrual loans delinquent 60 days to 89 days: Residential mortgage loans $ 889 549 578 — 511 Home equity loans 269 87 234 488 347 Consumer loans 306 484 603 381 557 Commercial real estate loans 274 207 2,243 52 831 Commercial loans 115 48 8,088 201 56 Total nonaccrual loans delinquent 60 days to 89 days $ 1,853 1,375 11,746 1,122 2,302 Nonaccrual loans delinquent 90 days or more: Residential mortgage loans $ 4,931 5,370 4,162 4,304 6,324 Home equity loans 2,250 2,558 2,473 2,822 3,100 Consumer loans 3,389 3,265 2,433 2,659 3,212 Commercial real estate loans 7,702 6,167 5,849 6,931 6,488 Commercial loans 7,257 14,156 3,061 3,165 2,770 Total nonaccrual loans delinquent 90 days or more $ 25,529 31,516 17,978 19,881 21,894 Total nonaccrual loans $ 61,401 76,828 102,159 95,060 94,384 Total nonaccrual loans $ 61,401 76,828 102,159 95,060 94,384 Loans 90 days past due and still accruing 656 1,045 2,511 2,452 2,698 Nonperforming loans 62,057 77,873 104,670 97,512 97,082 Real estate owned, net 35 76 74 50 104 Other nonperforming assets (1) 16,102 — — — — Nonperforming assets $ 78,194 77,949 104,744 97,562 97,186 Nonperforming loans to total loans 0.56 % 0.69 % 0.92 % 0.85 % 0.85 % Nonperforming assets to total assets 0.54 % 0.54 % 0.73 % 0.67 % 0.67 % Allowance for credit losses to total loans 1.04 % 1.11 % 1.10 % 1.09 % 1.10 % Allowance for credit losses to nonperforming loans 188.24 % 161.56 % 119.49 % 128.08 % 129.01 % (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 December 31, 2024 Pass Special mention * Substandard** Doubtful Loss Loans receivable 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 At December 31, 2023 Personal Banking: Residential mortgage loans $ 3,405,078 — 14,339 — — 3,419,417 Home equity loans 1,223,097 — 4,761 — — 1,227,858 Consumer loans 2,120,216 — 5,811 — — 2,126,027 Total Personal Banking 6,748,391 — 24,911 — — 6,773,302 Commercial Banking: Commercial real estate loans 2,670,510 124,116 179,384 — — 2,974,010 Commercial loans 1,637,879 6,678 14,172 — — 1,658,729 Total Commercial Banking 4,308,389 130,794 193,556 — — 4,632,739 Total loans $ 11,056,780 130,794 218,467 — — 11,406,041 * Includes $2.7 million, $2.9 million, $2.5 million, $2.4 million, and $7.8 million of acquired loans at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively. ** Includes $19.8 million, $26.0 million, $24.3 million, $27.2 million, and $20.3 million of acquired loans at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively. Northwest Bancshares, Inc. and Subsidiaries Loan Delinquency (Unaudited) (dollars in thousands) December 31,2024 * September 30,2024 * June 30,2024 * March 31,2024 * December 31,2023 * (Number of loans and dollar amount of loans) Loans delinquent 30 days to 59 days: Residential mortgage loans 276 $ 28,690 0.9 % 16 $ 685 — % 12 $ 616 — % 351 $ 38,502 1.1 % 307 $ 30,041 0.9 % Home equity loans 147 5,365 0.5 % 112 3,907 0.3 % 104 3,771 0.3 % 113 4,608 0.4 % 121 5,761 0.5 % Consumer loans 836 11,102 0.6 % 801 10,777 0.5 % 742 10,372 0.5 % 737 9,911 0.5 % 896 11,211 0.5 % Commercial real estate loans 32 5,215 0.2 % 21 5,919 0.2 % 21 4,310 0.1 % 25 6,396 0.2 % 23 3,204 0.1 % Commercial loans 121 5,632 0.3 % 34 3,260 0.2 % 59 4,366 0.3 % 62 3,091 0.2 % 59 4,196 0.3 % Total loans delinquent 30 days to 59 days 1,412 $ 56,004 0.5 % 984 $ 24,548 0.2 % 938 $ 23,435 0.2 % 1,288 $ 62,508 0.5 % 1,406 $ 54,413 0.5 % Loans delinquent 60 days to 89 days: Residential mortgage loans 80 $ 10,112 0.3 % 75 $ 9,027 0.3 % 70 $ 8,223 0.2 % 3 $ 70 — % 69 $ 7,796 0.2 % Home equity loans 26 1,434 0.1 % 27 882 0.1 % 35 1,065 0.1 % 26 761 0.1 % 37 982 0.1 % Consumer loans 293 3,640 0.2 % 296 3,600 0.2 % 295 3,198 0.2 % 231 2,545 0.1 % 322 3,754 0.2 % Commercial real estate loans 8 915 — % 11 7,643 0.3 % 9 3,155 0.1 % 5 807 — % 9 1,031 — % Commercial loans 48 1,726 0.1 % 19 753 — % 22 8,732 0.5 % 27 1,284 0.1 % 16 703 — % Total loans delinquent 60 days to 89 days 455 $ 17,827 0.2 % 428 $ 21,905 0.2 % 431 $ 24,373 0.2 % 292 $ 5,467 — % 453 $ 14,266 0.1 % Loans delinquent 90 days or more: ** Residential mortgage loans 56 $ 4,931 0.2 % 52 $ 5,370 0.2 % 53 $ 5,553 0.2 % 50 $ 5,813 0.2 % 70 $ 7,995 0.2 % Home equity loans 66 2,250 0.2 % 67 2,558 0.2 % 51 2,506 0.2 % 71 2,823 0.2 % 81 3,126 0.3 % Consumer loans 378 3,967 0.2 % 402 3,983 0.2 % 358 3,012 0.1 % 398 3,345 0.2 % 440 3,978 0.2 % Commercial real estate loans 27 7,702 0.3 % 13 6,167 0.2 % 19 6,034 0.2 % 22 6,931 0.2 % 27 6,712 0.2 % Commercial loans 73 7,335 0.4 % 85 14,484 0.8 % 72 3,385 0.2 % 62 3,421 0.2 % 53 2,780 0.2 % Total loans delinquent 90 days or more 600 $ 26,185 0.2 % 619 $ 32,562 0.3 % 553 $ 20,490 0.2 % 603 $ 22,333 0.2 % 671 $ 24,591 0.2 % Total loans delinquent 2,467 $ 100,016 0.9 % 2,031 $ 79,015 0.7 % 1,922 $ 68,298 0.6 % 2,183 $ 90,308 0.8 % 2,530 $ 93,270 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, $0.1 million, $0.4 million, and $0.6 million at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively. Northwest Bancshares, Inc. and Subsidiaries Allowance for Credit Losses (Unaudited) (dollars in thousands) Quarter ended December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 Beginning balance $ 125,813 125,070 124,897 125,243 124,841 Provision 15,549 5,727 2,169 4,234 3,801 Charge-offs residential mortgage (176) (255) (252) (162) (266) Charge-offs home equity (197) (890) (237) (412) (133) Charge-offs consumer (4,044) (3,560) (2,561) (4,573) (3,860) Charge-offs commercial real estate (13,997) (475) (500) (349) (742) Charge-offs commercial (10,400) (1,580) (1,319) (1,163) (806) Recoveries 4,271 1,776 2,873 2,079 2,408 Ending balance $ 116,819 125,813 125,070 124,897 125,243 Net charge-offs to average loans, annualized 0.87 % 0.18 % 0.07 % 0.16 % 0.12 % Year ended December 31, 2024 2023 Beginning balance $ 125,243 118,036 ASU 2022-02 Adoption — 426 Provision 27,679 18,664 Charge-offs residential mortgage (845) (1,189) Charge-offs home equity (1,736) (852) Charge-offs consumer (14,738) (12,451) Charge-offs commercial real estate (15,321) (2,366) Charge-offs commercial (14,462) (4,166) Recoveries 10,999 9,141 Ending balance $ 116,819 125,243 Net charge-offs to average loans, annualized 0.32 % 0.11 % 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 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 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 $ 3,215,596 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 % $ 3,442,308 32,739 3.80 % Home equity loans 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 % 1,238,420 17,590 5.64 % Consumer loans 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 % 2,055,783 24,667 4.76 % Commercial real estate loans 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 % 2,950,589 43,337 5.75 % Commercial loans 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 % 1,564,617 28,801 7.20 % Total loans receivable (a) (b) (d) 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 % 11,251,717 147,134 5.19 % Mortgage-backed securities (c) 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 % 1,741,687 7,951 1.83 % Investment securities (c) (d) 264,840 1,575 2.38 % 263,127 1,504 2.29 % 287,262 1,316 1.83 % 333,752 1,430 1.71 % 335,121 1,425 1.70 % FHLB stock, at cost 21,237 392 7.35 % 20,849 394 7.51 % 25,544 498 7.84 % 32,249 607 7.57 % 35,082 665 7.52 % Other interest-earning deposits 132,273 1,554 4.60 % 173,770 2,312 5.29 % 135,520 1,791 5.23 % 61,666 832 5.34 % 71,987 970 5.27 % Total interest-earning assets 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 % 13,435,594 158,145 4.67 % Noninterest-earning assets (e) 930,582 934,593 907,432 918,331 893,426 Total assets $ 14,322,864 $ 14,351,669 $ 14,458,592 $ 14,408,612 $ 14,329,020 Liabilities and shareholders' equity: Interest-bearing liabilities: Savings deposits (g) $ 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 % $ 2,102,320 4,045 0.76 % Interest-bearing demand deposits (g) 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 % 2,573,634 4,921 0.76 % Money market deposit accounts (g) 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 % 1,997,116 7,446 1.48 % Time deposits (g) 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 % 2,447,335 24,187 3.92 % Borrowed funds (f) 222,506 2,246 4.02 % 220,677 2,266 4.09 % 323,191 3,662 4.56 % 469,697 5,708 4.89 % 548,089 6,826 4.94 % Subordinated debt 114,488 1,148 4.01 % 114,396 1,148 4.01 % 114,308 1,148 4.02 % 114,225 1,148 4.02 % 114,134 1,148 4.02 % Junior subordinated debentures 129,791 2,277 6.87 % 129,727 2,467 7.56 % 129,663 2,449 7.47 % 129,597 2,459 7.51 % 129,532 2,512 7.59 % Total interest-bearing liabilities 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 % 9,912,160 51,085 2.04 % Noninterest-bearing demand deposits (g) 2,587,071 2,579,775 2,595,511 2,567,781 2,675,788 Noninterest-bearing liabilities 238,434 217,161 263,634 257,269 234,177 Total liabilities 12,733,636 12,778,772 12,917,158 12,858,742 12,822,125 Shareholders' equity 1,589,228 1,572,897 1,541,434 1,549,870 1,506,895 Total liabilities and shareholders' equity $ 14,322,864 $ 14,351,669 $ 14,458,592 $ 14,408,612 $ 14,329,020 Net interest income/Interest rate spread FTE 115,048 2.83 % 112,216 2.72 % 107,724 2.58 % 104,095 2.52 % 107,060 2.63 % Net interest-earning assets/Net interest margin FTE $ 3,484,151 3.42 % $ 3,435,240 3.33 % $ 3,493,147 3.20 % $ 3,456,589 3.10 % $ 3,523,434 3.16 % Tax equivalent adjustment (d) 851 914 883 857 758 Net interest income, GAAP basis 114,197 111,302 106,841 103,238 106,302 Ratio of interest-earning assets to interest-bearing liabilities 1.35X 1.34X 1.35X 1.34X 1.36X (a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status. (b) Interest income includes accretion/amortization of deferred loan fees/expenses, which was not material. (c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale. (d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis. (e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. (f) Average balances include FHLB borrowings and collateralized borrowings. (g) Average cost of deposits were 1.68%, 1.78%, 1.76%, 1.61%, and 1.37%, respectively, and average cost of Interest-bearing deposits were 2.14%, 2.27%, 2.24%, 2.06%, and 1.77%, respectively. Northwest Bancshares, Inc. and Subsidiaries Average Balance Sheet (Unaudited) (in thousands) The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages. Year ended December 31, 2024 2023 Average balance Interest Avg. yield/ cost (h) Average balance Interest Avg. yield/ cost (h) Assets Interest-earning assets: Residential mortgage loans $ 3,308,977 127,499 3.85 % $ 3,474,336 129,828 3.74 % Home equity loans 1,177,431 68,694 5.83 % 1,264,941 68,058 5.38 % Consumer loans 1,988,806 103,694 5.21 % 2,103,602 91,645 4.36 % Commercial real estate loans 3,000,431 183,491 6.02 % 2,881,005 160,352 5.49 % Commercial loans 1,809,574 135,326 7.36 % 1,376,234 96,253 6.90 % Loans receivable (a) (b) (d) 11,285,219 618,704 5.48 % 11,100,118 546,136 4.92 % Mortgage-backed securities (c) 1,739,141 39,793 2.29 % 1,822,375 32,886 1.80 % Investment securities (c) (d) 287,118 5,825 2.03 % 357,436 6,312 1.77 % FHLB stock, at cost 24,948 1,891 7.58 % 39,467 2,868 7.27 % Other interest-earning deposits 126,097 6,489 5.15 % 55,998 2,901 5.11 % Total interest-earning assets 13,462,523 672,702 5.00 % 13,375,349 591,103 4.42 % Noninterest-earning assets (e) 922,648 894,415 Total assets $ 14,385,171 $ 14,269,809 Liabilities and shareholders' equity Interest-bearing liabilities: Savings deposits (g) $ 2,142,852 24,222 1.13 % $ 2,148,127 8,822 0.41 % Interest-bearing demand deposits (g) 2,574,810 27,394 1.06 % 2,556,281 11,606 0.45 % Money market deposit accounts (g) 1,966,732 34,564 1.76 % 2,183,583 24,734 1.13 % Time deposits (g) 2,758,157 119,313 4.33 % 1,913,372 60,181 3.15 % Borrowed funds (f) 308,540 13,882 4.50 % 691,636 32,903 4.76 % Subordinated debt 114,355 4,592 4.02 % 114,002 4,592 4.03 % Junior subordinated debentures 129,695 9,652 7.32 % 129,434 9,401 7.14 % Total interest-bearing liabilities 9,995,141 233,619 2.34 % 9,736,435 152,239 1.56 % Noninterest-bearing demand deposits (g) 2,582,540 2,785,279 Noninterest-bearing liabilities 244,036 237,810 Total liabilities 12,821,717 12,759,524 Shareholders' equity 1,563,454 1,510,285 Total liabilities and shareholders' equity $ 14,385,171 $ 14,269,809 Net interest income/Interest rate spread 439,083 2.66 % 438,864 2.86 % Net interest-earning assets/Net interest margin $ 3,467,382 3.26 % $ 3,638,959 3.28 % Tax equivalent adjustment (d) 3,505 3,181 Net interest income, GAAP basis 435,578 435,683 Ratio of interest-earning assets to interest-bearing liabilities 1.35X 1.37X (a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status. (b) Interest income includes accretion/amortization of deferred loan fees/expenses, which were not material. (c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale. (d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis. (e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. (f) Average balances include FHLB borrowings and collateralized borrowings. (g) Average cost of deposits were 1.71% and 0.91%, respectively and average cost of Interest-bearing deposits were 2.18% and 1.20%, 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 Fourth Quarter 2024 net income of $33 million, or $0.26 per diluted share

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