FT Markets Data
Northwest Bancshares Inc

Northwest Bancshares, Inc. Announces Fourth Quarter 2025 net income of $46 million, or $0.31 per diluted share

Adjusted net income (non-GAAP) of $49 million , or $0.33 per diluted share

Net interest margin expands to 3.69% amid solid performance

Year to date EPS of $0.92 per diluted share, 16% growth from the prior year

Record quarterly total revenue of $180 million, 17% growth from the prior year

COLUMBUS, Ohio , Jan. 26, 2026 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (Nasdaq: NWBI) announced net income for the quarter ended December 31, 2025 of $46 million, or $0.31 per diluted share. This represents an increase of $13 million compared to the same quarter last year, when net income was $33 million, or $0.26 per diluted share, and an increase of $43 million compared to the prior quarter, when net income was $3 million, or $0.02 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended December 31, 2025 were 9.70% and 1.10% compared to 8.20% and 0.91% for the same quarter last year and 0.69% and 0.08% from the prior quarter. 

Adjusted net income (non-GAAP) for the quarter ended December 31, 2025 was $49 million, or $0.33 per diluted share, which increased by $8 million from $41 million, or $0.29 per diluted share in the prior quarter. This increase was driven by an increase in net interest income of $6 million, coupled with an increase in noninterest income of $6 million and a decrease in adjusted provision expense partially offset by an increase in adjusted noninterest expense of $7 million for the quarter ended December 31, 2025. All quarterly results were impacted by a full quarter of the acquisition of Penns Woods Bancorp, Inc. ("Penns Woods") which closed in late July 2025. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended December 31, 2025 were 10.33% and 1.17% compared to 8.89% and 1.01% 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 18, 2026 to shareholders of record as of February 5, 2026. This is the 125th 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, 2025, this represents an annualized dividend yield of approximately 6.7%.

Louis J. Torchio, President and CEO, Northwest Bancshares commented, "2025 was a transformational year for Northwest Bank. We closed on a significant acquisition, drove record revenue of $655 million for the full year, and continued to expand the firm's net interest margin. Coupled with our demonstrated expense management discipline through the closing and integration of our sizeable acquisition, we drove double digit EPS growth, all while investing in the talent, technology, and new financial centers and products to support our future growth."

"I am excited at our prospects in 2026, and anticipate another year of record revenue growth, as we build out our consumer franchise in Columbus, deepen relationships in our existing core markets, and continue to build market share in our commercial lines of business."

Balance Sheet Highlights

Dollars in thousands







Change 4Q25 vs.


4Q25


3Q25


4Q24


3Q25


4Q24

Average loans receivable

$    12,982,499


12,568,497


11,204,781


3.3 %


15.9 %

Average investments

2,201,221


2,111,928


2,033,991


4.2 %


8.2 %

Average deposits

13,771,215


13,296,651


12,028,417


3.6 %


14.5 %

Average borrowed funds

354,894


347,357


222,506


2.2 %


59.5 %

  • Average loans receivable increased $1.8 billion from the quarter ended December 31, 2024, primarily driven by the Penns Woods acquisition. Compared to the third quarter of 2025, average loans receivable increased by $414 million due to a full quarter impact from the acquisition coupled with internal loan growth.
  • Average investments increased $167 million from the quarter ended December 31, 2024 and $89 million from the quarter ended September 30, 2025. The growth in average investments was primarily due to the Penns Woods acquisition and a targeted increase in the overall securities portfolio during the quarter.
  • Average deposits grew $1.7 billion from the quarter ended December 31, 2024 and $475 million from the third quarter 2025. The growth in both periods was primarily driven by an increase in interest-bearing account balances primarily due to the addition of the Penns Woods deposit accounts.
  • Average borrowings increased $132 million compared to the quarter ended December 31, 2024 due to the acquisition of long term borrowings from Penns Woods. Average borrowings increased $8 million compared to the quarter ended September 30, 2025. The increase is primarily attributable to the acquired long term borrowings and additional short term borrowings to fund loan and securities growth.

Income Statement Highlights

Dollars in thousands






Change 4Q25 vs.


4Q25


3Q25


4Q24


3Q25


4Q24

Interest income

$   202,825


194,678


170,722


4.2 %


18.8 %

Interest expense

60,659


58,704


56,525


3.3 %


7.3 %

Net interest income

$   142,166


135,974


114,197


4.6 %


24.5 %











Net interest margin (FTE)

3.69 %


3.65 %


3.42 %





Compared to the quarter ended December 31, 2024, net interest income increased $28 million and net interest margin increased to 3.69% from 3.42% for the quarter ended December 31, 2024. This increase in net interest income resulted primarily from:

  • A $32 million increase in interest income that was the result of higher average yields coupled with an increase in average earning assets. The increase in average earning assets was driven by the Penns Woods acquisition during the third quarter. The average yield on loans improved to 5.65% for the quarter ended December 31, 2025 from 5.56% for the quarter ended December 31, 2024 driven by a loan mix shift towards higher yielding commercial loans along with the accretion of loan fair value marks from the acquisition of $4.6 million during the quarter.
  • A $4 million increase in interest expense is the result of an increase in the average balance of interest-bearing liabilities partially offset by a decline in the cost of deposits. The cost of interest-bearing liabilities decreased to 2.14% for the quarter ended December 31, 2025 from 2.27% for the quarter ended December 31, 2024.

Compared to the quarter ended September 30, 2025, net interest income increased $6 million and net interest margin increased to 3.69% for the quarter ended December 31, 2025 from 3.65% for the quarter ended September 30, 2025. This increase in net interest income resulted from the following:

  • A $8 million increase in interest income driven by growth in the average loan and investment balances and an increase on loan and investments yields compared to the prior quarter. The average yield on loans increased to 5.65% from 5.63% and average investment yields increased to 2.98% from 2.81% for the quarter ended September 30, 2025. The increases were primarily driven by the Penns Woods acquisition, including the accretion of loan fair value marks, coupled with a continued shift in loan mix towards higher yielding commercial loans and adding new securities at rates above the existing portfolio average.
  • A $2 million increase in interest expense driven higher average balances on both deposits and borrowings from the Penns Woods acquisition. Average cost of interest-bearing deposits decreased slightly compared to the prior quarter to 1.97% from 1.99% for the September 30, 2025 while average cost of borrowings declined to 3.83% from 3.84% for the quarter ended September 30, 2025.

Dollars in thousands







Change 4Q25 vs.



4Q25


3Q25


4Q24


3Q25


4Q24


Provision for credit losses - loans

$       5,743


31,394


15,549


(81.7) %


(63.1) %


Provision for credit losses - unfunded commitments

1,981


(189)


1,016


1148.1 %


95.0 %


Total provision for credit losses expense

$       7,724


31,205


16,565


(75.2) %


(53.4) %













Net charge-offs to average loans, annualized

0.40 %


0.29 %


0.87 %






The total provision for credit losses for the quarter ended December 31, 2025 was $7.7 million primarily driven by growth in our commercial lending portfolio and net charge-offs in the current period.

The total provision for credit losses for the quarter ended September 30, 2025 was $31 million primarily driven by the Day 1 initial provision from the Penns Woods acquisition of $20.6 million. Excluding the Day 1 provision for credit losses from the acquisition, the provision for credit losses for the quarter ended September 30, 2025 was $10.5 million.

The Company saw an decrease in classified loans to $453 million, or 3.49% of total loans, at December 31, 2025 from $527 million, or 4.07% of total loans, at September 30, 2025 and an increase from $272 million, or 2.44% of total loans, at December 31, 2024. This decrease was driven by improvements within the commercial real estate portfolio which decreased $65 million from the prior quarter.  The increase from the prior year was primarily due to classified loans acquired in the Penns Woods acquisition.

Dollars in thousands






Change 4Q25 vs.


4Q25


3Q25


4Q24


3Q25


4Q24

Noninterest income:










Gain on sale of investments

$            142


36


—


294.4 %


NA

Gain on sale of SBA loans

437


341


822


28.2 %


(46.8) %

Service charges and fees

17,377


16,911


15,975


2.8 %


8.8 %

Trust and other financial services income

8,416


8,040


7,485


4.7 %


12.4 %

Gain on real estate owned, net

148


132


238


12.1 %


(37.8) %

Income from bank-owned life insurance

8,269


1,751


2,020


372.2 %


309.4 %

Mortgage banking income

379


1,003


224


(62.2) %


69.2 %

Other operating income

2,609


3,984


13,299


(34.5) %


(80.4) %

Total noninterest income

$        37,777


32,198


40,063


17.3 %


(5.7) %

Noninterest income decreased from the quarter ended December 31, 2024 by $2 million primarily due 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 in the prior year which was partially offset by an increase in income from bank-owned life insurance due to a large claim recognized in the current quarter.  Noninterest income increased from the quarter ended September 30, 2025 by $6 million due primarily to an increase in income from bank-owned life insurance.  

Dollars in thousands






Change 4Q25 vs.


4Q25


3Q25


4Q24


3Q25


4Q24

Noninterest expense:










Personnel expense

$        65,143


63,014


53,198


3.4 %


22.5 %

Non-personnel expense

48,378


70,484


42,128


(31.4) %


14.8 %

Total noninterest expense

$      113,521


133,498


95,326


(15.0) %


19.1 %

Noninterest expense increased from the quarter ended December 31, 2024 due to a $12 million increase in core compensation and benefits expense due to the addition of Penns Woods employees coupled with an increase in performance based incentive compensation expense. Additionally, non-personnel expense increased by $6 million due to an increase of $2 million of amortization of intangible expense and $1 million of merger and restructuring expense related to the acquisition coupled with increases in operating expenses due to the addition of the Penns Woods branches to our footprint.

Compared to the quarter ended September 30, 2025, personnel expense increased $2 million driven by the same factors discussed above. Non-personnel expense decreased by $22 million due to a $27 million decrease in merger and restructuring expenses in the current quarter which was offset by an increase in processing and other expense due to a full quarter of additional branches and the timing of charitable contributions. 

Dollars in thousands






Change 4Q25 vs.


4Q25


3Q25


4Q24


3Q25


4Q24

Income before income taxes

$        58,698


3,469


42,369


1592.1 %


38.5 %

Income tax expense

12,985


302


9,619


4199.7 %


35.0 %

Net income

$        45,713


3,167


32,750


1343.4 %


39.6 %

The provision for income taxes increased by $3 million from the quarter ended December 31, 2024 and $13 million from the quarter ended September 30, 2025 primarily due to the quarterly change in income before income taxes.

Net income increased from the quarter ended December 31, 2024 and September 30, 2025 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, 2025, Northwest operated 151 full-service financial centers and ten 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.

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

#                      #                      #

This release may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words "believe," "anticipate," "estimate," "expect," "project," "target," "goal" and similar expressions are intended to identify forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements include but are not limited to: statements of our goals, intentions and expectations; statements regarding our financial condition and results of operations, including statements related to our earnings outlook; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to the following: the possibility that any of the anticipated benefits of the merger with Penns Woods will not be realized or will not be realized within the expected time period; the effect of the merger on the combined company's customer and employee relationships and operating results; and other factors that may affect the results of operations and financial condition of the combined company; inflation and changes in the interest rate environment that reduce our margins, our loan origination, or the fair value of financial instruments; changes in asset quality, including increases in default rates on loans and higher levels of nonperforming loans and loan charge-offs generally; changes in laws, government regulations or supervision, examination and enforcement priorities affecting financial institutions, including as part of the regulatory reform agenda of the Trump administration, as well as changes in regulatory fees and capital requirements; changes in federal, state, or local tax laws and tax rates; general economic conditions, either nationally or in our market areas, that are different than expected, including inflationary or recessionary pressures or those related to changes in monetary, fiscal, regulatory, tariff and international trade policies of the U.S. government, including policies of the U.S. Department of Treasury and Board of Governors of the Federal Reserve System, and any related increases in compliance and other costs; trade disputes, barriers to trade or the emergence of trade restrictions and the resulting impacts on market volatility and global trade; growing fiscal deficits; potential recession or slowing of growth in the U.S., Europe and other regions; developments in the Middle East and in Latin America; adverse changes in the securities and credit markets; instability or breakdown in the financial services sector, including failures or rumors of failures of other depository institutions, along with actions taken by governmental agencies to address such turmoil; cyber-security concerns, including an interruption or breach in the security of our website or other information systems; technological changes that may be more difficult or expensive than expected; changes in liquidity, including the size and composition of our deposit portfolio, and the percentage of uninsured deposits in the portfolio; the ability of third-party providers to perform their obligations to us; competition among depository and other financial institutions, including with respect to deposit gathering, service charges and fees; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to manage our internal growth and our ability to successfully integrate acquired entities, businesses or branch offices; changes in consumer spending, borrowing and savings habits; our ability to continue to increase and manage our commercial and personal loans; possible impairments of securities held by us, including those issued by government entities and government sponsored enterprises; changes in the value of our goodwill or other intangible assets; the impact of the economy on our loan portfolio (including cash flow and collateral values), investment portfolio, customers and capital market activities; our ability to receive regulatory approvals for proposed transactions or new lines of business; the effects of any federal government shutdown or the inability of the federal government to manage debt limits; changes in the financial performance and/or condition of our borrowers; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Securities and Exchange Commission (the "SEC"), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board ("FASB") and other accounting standard setters; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the effect of global or national war, conflict, or terrorism; our ability to manage market risk, credit risk and operational risk; the disruption to local, regional, national and global economic activity caused by infectious disease outbreaks, and the significant impact that any such outbreaks may have on our growth, operations and earnings; the effects of natural disasters and extreme weather events; changes in our ability to continue to pay dividends, either at current rates or at all; our ability to retain key employees; and our compensation expense associated with equity allocated or awarded to our employees. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, expected or projected. These and other risk factors are more fully described in this presentation and in the Northwest Bancshares, Inc. (the "Company") Annual Report on Form 10-K for the year ended December 31, 2024 under the section entitled "Item 1A - Risk Factors," and from time to time in other filings made by the Company with the SEC. These forward-looking statements speak only at the date of the presentation. The Company expressly disclaims any obligation to publicly release any updates or revisions to reflect any change in the Company's expectations with regard to any change in events, conditions or circumstances on which any such statement is based.

Use of Non-GAAP Financial Measures

This release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses these "non-GAAP" measures in its analysis of the Company's performance. Management believes these non-GAAP financial measures allow for better comparability of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. See the pages 9 and 10 of this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures where applicable.

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(dollars in thousands, except per share amounts)



December 31,
2025


September 30,
2025


December 31,
2024

Assets






Cash and cash equivalents

$       233,647


278,817


288,378

Marketable securities available-for-sale (amortized cost of $1,710,978, $1,405,959 and $1,278,665,
respectively)

1,586,382


1,270,880


1,108,944

Marketable securities held-to-maturity (fair value of $605,929, $618,633 and $637,948, respectively)

683,369


702,392


750,586

Total cash and cash equivalents and marketable securities

2,503,398


2,252,089


2,147,908







Loans held-for-sale

22,437


22,297


76,331

Residential mortgage loans

3,100,780


3,157,853


3,178,269

Home equity loans

1,507,532


1,520,893


1,149,396

Consumer loans

2,563,890


2,453,805


1,995,085

Commercial real estate loans

3,296,902


3,495,664


2,849,862

Commercial loans

2,538,212


2,312,718


2,007,402

Total loans receivable

13,007,316


12,940,933


11,180,014

Allowance for credit losses

(150,212)


(157,396)


(116,819)

Loans receivable, net

12,857,104


12,783,537


11,063,195







FHLB stock, at cost

36,628


33,349


21,006

Accrued interest receivable

56,291


55,549


46,356

Real estate owned, net

76


174


35

Premises and equipment, net

140,381


139,491


124,246

Bank-owned life insurance

294,386


303,115


253,137

Goodwill

444,330


438,402


380,997

Other intangible assets, net

39,667


47,924


2,837

Other assets

371,919


305,082


292,176

Total assets

$   16,766,617


16,381,009


14,408,224

Liabilities and shareholders' equity






Liabilities






Noninterest-bearing demand deposits

$     3,123,229


3,089,963


2,621,415

Interest-bearing demand deposits

2,995,759


2,898,350


2,666,504

Money market deposit accounts

2,540,818


2,462,979


2,007,739

Savings deposits

2,366,513


2,373,413


2,171,251

Time deposits

2,916,698


2,871,544


2,677,645

Total deposits

13,943,017


13,696,249


12,144,554







Borrowed funds

446,283


368,241


200,331

Subordinated debt

114,800


114,800


114,538

Junior subordinated debentures

130,093


130,028


129,834

Advances by borrowers for taxes and insurance

37,309


21,840


42,042

Accrued interest payable

6,846


10,555


6,935

Other liabilities

197,845


183,560


173,134

Total liabilities

14,876,193


14,525,273


12,811,368

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, 146,107,964, 146,097,057 and
127,508,003 shares issued and outstanding, respectively

1,461


1,461


1,275

Additional paid-in capital

1,270,444


1,268,694


1,033,385

Retained earnings

689,210


672,843


673,110

Accumulated other comprehensive loss

(70,691)


(87,262)


(110,914)

Total shareholders' equity

1,890,424


1,855,736


1,596,856

Total liabilities and shareholders' equity

$   16,766,617


16,381,009


14,408,224







Equity to assets

11.27 %


11.33 %


11.08 %

Tangible common equity to tangible assets*

8.64 %


8.62 %


8.65 %

Book value per share

$           12.94


12.70


12.52

Tangible book value per share*

$             9.63


9.37


9.51

Closing market price per share

$           12.00


12.39


13.19

Full time equivalent employees

2,169


2,190


1,956

Number of banking offices

161


161


141



*

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,
2025


September 30,
2025


June 30,
2025


March 31,
2025


December 31,
2024






Interest income:










Loans receivable

$     184,047


177,723


154,914


164,638


155,838

Mortgage-backed securities

14,071


12,668


12,154


11,730


11,515

Taxable investment securities

1,324


1,183


999


933


910

Tax-free investment securities

777


752


512


512


515

FHLB stock dividends

701


652


318


366


392

Interest-earning deposits

1,905


1,700


2,673


2,416


1,552

Total interest income

202,825


194,678


171,570


180,595


170,722

Interest expense:










Deposits

52,947


51,880


46,826


47,325


50,854

Borrowed funds

7,712


6,824


5,300


5,452


5,671

Total interest expense

60,659


58,704


52,126


52,777


56,525

Net interest income

142,166


135,974


119,444


127,818


114,197

Provision for credit losses - loans

5,743


31,394


11,456


8,256


15,549

Provision for credit losses - unfunded commitments

1,981


(189)


(2,712)


(345)


1,016

Net interest income after provision for credit losses

134,442


104,769


110,700


119,907


97,632

Noninterest income:










Gain on sale of investments

142


36


—


—


—

Gain on sale of SBA loans

437


341


819


1,238


822

Service charges and fees

17,377


16,911


15,797


14,987


15,975

Trust and other financial services income

8,416


8,040


7,948


7,910


7,485

Gain on real estate owned, net

148


132


258


84


238

Income from bank-owned life insurance

8,269


1,751


1,421


1,331


2,020

Mortgage banking income

379


1,003


1,075


696


224

Other operating income

2,609


3,984


3,620


2,109


13,299

Total noninterest income

37,777


32,198


30,938


28,355


40,063

Noninterest expense:










Compensation and employee benefits

65,143


63,014


55,213


54,540


53,198

Premises and occupancy costs

8,170


7,707


7,122


8,400


7,263

Office operations

4,217


3,495


2,910


2,977


3,036

Collections expense

856


776


838


328


905

Processing expenses

16,454


15,072


12,973


13,990


15,361

Marketing expenses

1,827


1,932


3,018


1,880


2,327

Federal deposit insurance premiums

3,538


3,361


2,296


2,328


2,949

Professional services

3,366


3,010


3,990


2,756


3,788

Amortization of intangible assets

2,257


1,974


436


504


526

Merger, asset disposition and restructuring expense

4,160


31,260


6,244


1,123


2,850

Other expenses

3,533


1,897


2,500


2,911


3,123

Total noninterest expense

113,521


133,498


97,540


91,737


95,326

Income before income taxes

58,698


3,469


44,098


56,525


42,369

Income tax expense

12,985


302


10,423


13,067


9,619

Net income

$       45,713


3,167


33,675


43,458


32,750











Basic earnings per share

$          0.31


0.02


0.26


0.34


0.26

Diluted earnings per share

$          0.31


0.02


0.26


0.34


0.26











Weighted average common shares outstanding - diluted

146,703,966


141,175,516


128,114,509


128,299,013


127,968,910











Annualized return on average equity

9.70 %


0.69 %


8.26 %


10.90 %


8.20 %

Annualized return on average assets

1.10 %


0.08 %


0.93 %


1.22 %


0.91 %

Annualized return on average tangible common equity *

13.10 %


0.90 %


10.78 %


14.29 %


10.81 %

Efficiency ratio

63.09 %


79.38 %


64.86 %


58.74 %


61.80 %

Efficiency ratio, excluding certain items  **

59.52 %


59.62 %


60.42 %


57.70 %


59.61 %



*

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

**

Excludes 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,


2025


2024

Interest income:




Loans receivable

$                         681,322


615,776

Mortgage-backed securities

50,623


39,793

Taxable investment securities

4,439


3,274

Tax-free investment securities

2,553


1,975

FHLB stock dividends

2,037


1,891

Interest-earning deposits

8,694


6,487

Total interest income

749,668


669,196

Interest expense:




Deposits

198,978


205,492

Borrowed funds

25,288


28,126

Total interest expense

224,266


233,618

Net interest income

525,402


435,578

Provision for credit losses - loans

56,849


27,679

Provision for credit losses - unfunded commitments

(1,265)


(3,174)

Net interest income after provision for credit losses

469,818


411,073

Noninterest income:




Gain/(loss) on sale of investments

178


(39,413)

Gain on sale of SBA loans

2,835


3,819

Service charges and fees

65,072


62,957

Trust and other financial services income

32,314


30,102

Gain on real estate owned, net

622


887

Income from bank-owned life insurance

12,772


6,327

Mortgage banking income

3,153


2,321

Other operating income

12,322


20,010

Total noninterest income

129,268


87,010

Noninterest expense:




Compensation and employee benefits

237,910


214,455

Premises and occupancy costs

31,399


29,469

Office operations

13,599


12,433

Collections expense

2,798


2,121

Processing expenses

58,489


59,351

Marketing expenses

8,657


8,890

Federal deposit insurance premiums

11,523


11,600

Professional services

13,122


14,883

Amortization of intangible assets

5,171


2,452

Merger, asset disposition and restructuring expense

42,787


5,763

Other expenses

10,841


7,120

Total noninterest expense

436,296


368,537

Income before income taxes

162,790


129,546

Income tax expense

36,777


29,268

Net income

$                         126,013


100,278





Basic earnings per share

$                               0.93


0.79

Diluted earnings per share

$                               0.92


0.79





Weighted average common shares outstanding - diluted

136,322,885


127,699,501





Annualized return on average equity

7.27 %


6.41 %

Annualized return on average assets

0.82 %


0.70 %

Annualized return on tangible common equity *

9.56 %


8.51 %





Efficiency ratio

66.64 %


70.52 %

Efficiency ratio, excluding certain items **

59.32 %


64.11 %



*

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,
2025


September 30,
2025


December 31,
2024


2025


2024

Reconciliation of net income to adjusted net income:










Net income (GAAP)

$          45,713


3,167


32,750


126,013


100,278

Non-GAAP adjustments










Add: merger, asset disposition and restructuring expense

4,160


31,260


2,850


42,787


5,763

Add: loss on the sale of investments

—


—


—


—


39,413

Add: CECL Day 1 non-PCD and unfunded provision expense

—


20,664


—


20,664


—

Less: tax benefit of non-GAAP adjustments

(1,165)


(14,539)


(798)


(17,766)


(12,649)

Adjusted net income (non-GAAP)

$          48,708


40,552


34,802


171,698


132,805

Diluted earnings per share (GAAP)

$              0.31


0.02


0.26


0.92


0.79

Diluted adjusted earnings per share (non-GAAP)

$              0.33


0.29


0.27


1.26


1.04











Average equity

$      1,870,088


1,809,395


1,589,228


1,733,909


1,563,454

Average assets

16,494,008


15,942,440


14,322,864


15,334,189


14,385,171

Annualized return on average equity (GAAP)

9.70 %


0.69 %


8.20 %


7.27 %


6.41 %

Annualized return on average assets (GAAP)

1.10 %


0.08 %


0.91 %


0.82 %


0.70 %

Annualized return on average equity, excluding merger, asset
disposition and restructuring expense, loss on the sale of investments
and CECL Day 1 non-PCD and unfunded provision expense, net of
tax (non-GAAP)

10.33 %


8.89 %


8.71 %


9.90 %


8.49 %

Annualized return on average assets, excluding merger, asset
disposition and restructuring expense, loss on sale of investments, and
CECL Day 1 non-PCD and unfunded provision expense, net of tax
(non-GAAP)

1.17 %


1.01 %


0.97 %


1.12 %


0.92 %


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,
2025


September 30,
2025


December 31,
2024

Tangible common equity to assets






Total shareholders' equity

$     1,890,424


1,855,736


1,596,856

  Less: goodwill and intangible assets

(483,997)


(486,326)


(383,834)

Tangible common equity

$     1,406,427


1,369,410


1,213,022







Total assets

$   16,766,617


16,381,009


14,408,224

Less: goodwill and intangible assets

(483,997)


(486,326)


(383,834)

  Tangible assets

$   16,282,620


15,894,683


14,024,390







Tangible common equity to tangible assets

8.64 %


8.62 %


8.65 %







Tangible book value per share






Tangible common equity

$     1,406,427


1,369,410


1,213,022

Common shares outstanding

146,107,964


146,097,057


127,508,003

Tangible book value per share

9.63


9.37


9.51

 

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,
2025


September 30,
2025


June 30,
2025


March 31,
2025


December 31,
2024


2025


2024








Annualized return on average tangible common equity














Net income

$        45,713


3,167


33,675


43,458


32,750


126,013


100,278















Average shareholders' equity

1,870,088


1,809,395


1,635,966


1,616,611


1,589,228


1,733,909


1,563,454

Less: average goodwill and intangible assets

(485,252)


(409,875)


(383,152)


(383,649)


(384,178)


(415,735)


(385,074)

Average tangible common equity

$   1,384,836


1,399,520


1,252,814


1,232,962


1,205,050


1,318,174


1,178,380















Annualized return on average tangible common equity

13.10 %


0.90 %


10.78 %


14.29 %


10.81 %


9.56 %


8.51 %















Efficiency ratio, excluding loss on the sale of investments, amortization and merger,
asset disposition and restructuring expenses














Non-interest expense

$      113,521


133,498


97,540


91,737


95,326


436,296


368,537

Less: amortization expense

(2,257)


(1,974)


(436)


(504)


(526)


(5,171)


(2,452)

Less: merger, asset disposition and restructuring expenses

(4,160)


(31,260)


(6,244)


(1,123)


(2,850)


(42,787)


(5,763)

Non-interest expense, excluding amortization and merger, assets disposition and
restructuring expenses

$      107,104


100,264


90,860


90,110


91,950


388,338


360,322















Net interest income

$      142,166


135,974


119,444


127,818


114,197


525,402


435,578

Non-interest income

37,777


32,198


30,938


28,355


40,063


129,268


87,010

  Add: loss on the sale of investments

—


—


—


—


—


—


39,413

Net interest income plus non-interest income, excluding loss on sale of investments

$      179,943


168,172


150,382


156,173


154,260


654,670


562,001















Efficiency ratio, excluding loss on sale of investments, amortization and merger, asset
disposition and restructuring expenses

59.52 %


59.62 %


60.42 %


57.70 %


59.61 %


59.32 %


64.11 %

















*

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, 2025


Balance


Percent of
total deposits


Number of
relationships

Uninsured deposits per the Call Report (1)

$                      3,737,960


26.8 %


6,289

Less intercompany deposit accounts

1,339,304


9.6 %


12

Less collateralized deposit accounts

435,258


3.1 %


260

Uninsured deposits excluding intercompany and collateralized accounts

$                      1,963,398


14.1 %


6,017



(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 $42.4 million, or 0.31% of total deposits, as of December 31, 2025. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $236.3 million, or 1.69% of total deposits, as of December 31, 2025. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $326,254 as of December 31, 2025.


The following table provides additional details for the Company's deposit portfolio:



As of December 31, 2025


Balance


Percent of
total deposits


Number of
accounts

Personal noninterest bearing demand deposits

$              1,714,326


12.2 %


312,429

Business noninterest bearing demand deposits

1,408,903


10.1 %


48,081

Personal interest-bearing demand deposits

1,401,892


10.1 %


54,866

Business interest-bearing demand deposits

1,593,867


11.4 %


9,120

Personal money market deposits

1,766,973


12.7 %


27,259

Business money market deposits

773,845


5.6 %


3,226

Savings deposits

2,366,513


17.0 %


187,565

Time deposits

2,916,698


20.9 %


81,429

Total deposits

$            13,943,017


100.0 %


723,975


Our average deposit account balance as of December 31, 2025 was $19,259. The Company's insured cash sweep deposit balance was $781 million as of December 31, 2025.

 

Northwest Bancshares, Inc. and Subsidiaries

Regulatory Capital Requirements (Unaudited)

(dollars in thousands)



At December 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.

$     1,875,097


15.36 %


$     1,281,842


10.50 %


$     1,220,802


10.00 %

Northwest Bank

1,732,895


14.21 %


1,280,528


10.50 %


1,219,551


10.00 %













Tier 1 capital (to risk weighted assets)












Northwest Bancshares, Inc.

1,504,320


12.32 %


1,037,682


8.50 %


732,481


6.00 %

Northwest Bank

1,580,217


12.96 %


1,036,618


8.50 %


975,641


8.00 %













Common equity tier 1 capital (to risk weighted assets)












Northwest Bancshares, Inc.

1,504,320


12.32 %


854,561


7.00 %


N/A


N/A

Northwest Bank

1,580,217


12.96 %


853,686


7.00 %


792,708


6.50 %













Tier 1 capital (leverage)  (to average assets)












Northwest Bancshares, Inc.

1,504,320


9.29 %


647,636


4.00 %


N/A


N/A

Northwest Bank

1,580,217


9.77 %


647,141


4.00 %


808,926


5.00 %

(1)

December 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)




December 31, 2025

Marketable securities available-for-sale


Amortized cost


Gross unrealized

holding gains


Gross unrealized

holding losses


Fair value


Weighted average
duration

   Debt issued by the U.S. government and agencies:











Due after five years through ten years


$                1,631


11


(13)


1,629


3.12

Due after ten years


41,673


—


(7,390)


34,283


5.83












   Debt issued by government sponsored enterprises:











   Due after one year through five years


1,040


6


(2)


1,044


1.51

   Due after five years through ten years


996


7


—


1,003


0.42












   Municipal securities:











   Due within one year


1,810


9


—


1,819


0.59

Due after one year through five years


10,876


118


(7)


10,987


2.32

   Due after five years through ten years


25,111


393


(1,253)


24,251


6.69

   Due after ten years


52,342


342


(6,473)


46,211


9.40












   Corporate debt issues:











   Due within one year


500


—


—


500


0.24

   Due in one year through five years


4,716


12


(22)


4,706


3.65

   Due after five years through ten years


46,436


1,429


(64)


47,801


4.23

   Due after ten years


4,000


27


—


4,027


4.42












   Mortgage-backed agency securities:











   Fixed rate pass-through


402,670


3,940


(10,685)


395,925


7.24

   Variable rate pass-through


3,015


66


(2)


3,079


3.34

   Fixed rate agency CMBS


616,751


1,553


(73,461)


544,843


3.67

   Variable rate agency CMBS


8,341


2


—


8,343


3.00

   Fixed rate agency CMOs


451,776


1,685


(34,848)


418,613


5.35

   Variable rate agency CMOs


37,294


103


(79)


37,318


6.44

   Total mortgage-backed agency securities


1,519,847


7,349


(119,075)


1,408,121


5.24

   Total marketable securities available-for-sale


$         1,710,978


9,703


(134,299)


1,586,382


5.32












Marketable securities held-to-maturity











Government sponsored











Due after one year through five years


$              16,477


—


(98)


16,379


0.23

Due after five years through ten years


107,988


—


(8,216)


99,772


2.79












   Mortgage-backed agency securities:











   Fixed rate pass-through


98,462


1


(9,775)


88,688


4.21

   Variable rate pass-through


310


3


—


313


3.35

   Fixed rate agency CMBS


78,270


—


(13,133)


65,137


3.43

   Fixed rate agency CMOs


381,334


—


(46,220)


335,114


5.57

   Variable rate agency CMOs


528


—


(2)


526


3.96

   Total mortgage-backed agency securities


558,904


4


(69,130)


489,778


5.03

   Total marketable securities held-to-maturity


$            683,369


4


(77,444)


605,929


4.65

 

Northwest Bancshares, Inc. and Subsidiaries

Asset Quality (Unaudited)

(dollars in thousands)



December 31,
2025


September 30,
2025


June 30,
2025


March 31,
2025


December 31,
2024

Nonaccrual loans:










Residential mortgage loans

$         12,247


11,497


8,482


7,025


6,951

Home equity loans

3,755


6,979


3,507


3,004


3,332

Consumer loans

5,711


5,898


4,418


5,201


5,028

Commercial real estate loans

57,485


82,580


62,091


31,763


36,967

Commercial loans

28,085


21,371


23,896


11,757


9,123

Total nonaccrual loans

$       107,283


128,325


102,394


58,750


61,401

Loans 90 days past due and still accruing

646


701


493


603


656

Nonperforming loans

107,929


129,026


102,887


59,353


62,057

Real estate owned, net

76


174


48


80


35

Other nonperforming assets (1)

—


—


—


16,102


16,102

Nonperforming assets

$       108,005


129,200


102,935


75,535


78,194











Nonperforming loans to total loans

0.83 %


1.00 %


0.91 %


0.53 %


0.56 %

Nonperforming assets to total assets

0.64 %


0.79 %


0.71 %


0.52 %


0.54 %

Allowance for credit losses to total loans

1.15 %


1.22 %


1.14 %


1.09 %


1.04 %

Allowance for credit losses to nonperforming loans

139.18 %


121.99 %


125.53 %


206.91 %


188.24 %



(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, 2025


Pass


Special

   mention *


Substandard **


Doubtful


Loss


Loans

receivable

Personal Banking:













Residential mortgage loans


$       3,088,533


—


12,247


—


—


3,100,780

Home equity loans


1,503,777


—


3,755


—


—


1,507,532

Consumer loans


2,557,577


—


6,313


—


—


2,563,890

Total Personal Banking


7,149,887


—


22,315


—


—


7,172,202

Commercial Banking:













Commercial real estate loans


2,817,802


131,589


347,511


—


—


3,296,902

Commercial loans


2,392,830


61,852


83,530


—


—


2,538,212

Total Commercial Banking


5,210,632


193,441


431,041


—


—


5,835,114

Total loans


$     12,360,519


193,441


453,356


—


—


13,007,316

At September 30, 2025













Personal Banking:













Residential mortgage loans


$       3,146,355


—


11,498


—


—


3,157,853

Home equity loans


1,513,914


—


6,979


—


—


1,520,893

Consumer loans


2,447,208


—


6,597


—


—


2,453,805

Total Personal Banking


7,107,477


—


25,074


—


—


7,132,551

Commercial Banking:













Commercial real estate loans


2,912,166


171,005


412,493


—


—


3,495,664

Commercial loans


2,141,236


82,009


89,473


—


—


2,312,718

Total Commercial Banking


5,053,402


253,014


501,966


—


—


5,808,382

Total loans


$     12,160,879


253,014


527,040


—


—


12,940,933

At June 30, 2025













Personal Banking:













Residential mortgage loans


$       3,039,809


—


12,317


—


—


3,052,126

Home equity loans


1,153,808


—


3,712


—


—


1,157,520

Consumer loans


2,206,363


—


4,912


—


—


2,211,275

Total Personal Banking


6,399,980


—


20,941


—


—


6,420,921

Commercial Banking:













Commercial real estate loans


2,266,057


112,852


403,495


—


—


2,782,404

Commercial loans


1,956,751


87,951


93,797


—


—


2,138,499

Total Commercial Banking


4,222,808


200,803


497,292


—


—


4,920,903

Total loans


$     10,622,788


200,803


518,233


—


—


11,341,824

At March 31, 2025













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



*

Includes $38.2 million, $41.0 million, $4.0 million, $4.7 million, and $2.7 million of acquired loans at December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.

**

Includes $93.2 million, $96.9 million, $19.2 million, $18.0 million, and $19.8 million of acquired loans at December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.

 

Northwest Bancshares, Inc. and Subsidiaries

Loan Delinquency (Unaudited)

(dollars in thousands)




December 31,
2025


*



September 30,
2025


*



June 30,
2025


*



March 31,
2025


*



December 31,
2024


*


























Loans delinquent 30 days to 59 days:























Residential mortgage


$          41,180


1.3 %



$            1,639


0.1 %



$          561


— %



$        32,840


1.0 %



$          28,690


0.9 %

Home equity loans


6,488


0.4 %



4,644


0.3 %



4,664


0.4 %



3,882


0.3 %



5,365


0.5 %

Consumer loans


14,063


0.5 %



12,257


0.5 %



9,174


0.4 %



8,792


0.4 %



11,102


0.6 %

Commercial real estate


28,645


0.9 %



14,600


0.4 %



4,585


0.2 %



8,536


0.3 %



5,215


0.2 %

Commercial loans


5,657


0.2 %



9,974


0.4 %



5,569


0.3 %



6,841


0.3 %



5,632


0.3 %

Total loans delinquent 30
days to 59 days


$          96,033


0.7 %



$          43,114


0.3 %



$      24,553


0.2 %



$        60,891


0.5 %



$          56,004


0.5 %


























Loans delinquent 60 days to 89 days:























Residential mortgage


$          10,934


0.4 %



$            7,917


0.3 %



$        8,958


0.3 %



$          3,074


0.1 %



$          10,112


0.3 %

Home equity loans


2,316


0.2 %



2,671


0.2 %



985


0.1 %



1,290


0.1 %



1,434


0.1 %

Consumer loans


4,599


0.2 %



3,691


0.2 %



3,233


0.1 %



2,808


0.1 %



3,640


0.2 %

Commercial real estate


12,941


0.4 %



1,575


— %



13,240


0.5 %



2,001


0.1 %



915


— %

Commercial loans


2,899


0.1 %



1,915


0.1 %



2,031


0.1 %



2,676


0.1 %



1,726


0.1 %

Total loans delinquent 60
days to 89 days


$          33,689


0.3 %



$          17,769


0.1 %



$      28,447


0.3 %



$        11,849


0.1 %



$          17,827


0.2 %


























Loans delinquent 90 days or more:























Residential mortgage


$          10,001


0.3 %



$            9,427


0.3 %



$        6,905


0.2 %



$          4,005


0.1 %



$            4,931


0.2 %

Home equity loans


2,492


0.2 %



2,963


0.2 %



1,879


0.2 %



1,893


0.2 %



2,250


0.2 %

Consumer loans


4,893


0.2 %



4,865


0.2 %



3,486


0.2 %



4,026


0.2 %



3,967


0.2 %

Commercial real estate


32,745


1.0 %



56,453


1.6 %



41,875


1.5 %



23,433


0.8 %



7,702


0.3 %

Commercial loans


16,269


0.6 %



9,490


0.4 %



10,433


0.5 %



5,994


0.3 %



7,335


0.4 %

Total loans delinquent 90
days or more


$          66,400


0.5 %



$          83,198


0.6 %



$      64,578


0.6 %



$        39,351


0.3 %



$          26,185


0.2 %


























Total loans delinquent


$        196,122


1.5 %



$        144,081


1.1 %



$    117,578


1.0 %



$      112,091


1.0 %



$        100,016


0.9 %



*

Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for Credit Losses (Unaudited)

(dollars in thousands)



Quarter ended


December 31,
2025


September 30,
2025


June 30,
2025


March 31,
2025


December 31,
2024

Beginning balance

$      157,396


129,159


122,809


116,819


125,813

Initial allowance on loans purchased with credit deterioration

—


6,029


—


—


—

Provision

5,743


31,394


11,456


8,256


15,549

Charge-offs residential mortgage

(228)


(137)


(273)


(588)


(176)

Charge-offs home equity

(558)


(336)


(413)


(273)


(197)

Charge-offs consumer

(4,139)


(3,994)


(3,331)


(3,805)


(4,044)

Charge-offs commercial real estate

(9,765)


(4,312)


(293)


(116)


(13,997)

Charge-offs commercial

(532)


(2,395)


(3,597)


(571)


(10,400)

Recoveries

2,295


1,988


2,801


3,087


4,271

Ending balance

$      150,212


157,396


129,159


122,809


116,819

Net charge-offs to average loans, annualized

0.40 %


0.29 %


0.18 %


0.08 %


0.87 %

 

Year ended December 31,


2025


2024

Beginning balance

$                    116,819


125,243

Initial allowance on loans purchased with credit deterioration

6,029


—

Provision

56,849


27,679

Charge-offs residential mortgage

(1,226)


(845)

Charge-offs home equity

(1,580)


(1,736)

Charge-offs consumer

(15,269)


(14,738)

Charge-offs commercial real estate

(14,486)


(15,321)

Charge-offs commercial

(7,095)


(14,462)

Recoveries

10,171


10,999

Ending balance

$                    150,212


116,819

Net charge-offs to average loans, annualized

0.25 %


0.32 %

 

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, 2025


September 30, 2025


June 30, 2025


March 31, 2025


December 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

$  3,147,858


31,814


4.04 %


$  3,160,008


31,386


3.97 %


$  3,091,324


29,978


3.88 %


$  3,155,738


30,394


3.85 %


$  3,215,596


31,107


3.87 %

Home equity loans

1,512,049


22,802


5.98 %


1,421,717


21,080


5.88 %


1,145,655


16,265


5.69 %


1,139,728


16,164


5.75 %


1,154,456


16,801


5.79 %

Consumer loans

2,412,579


34,436


5.66 %


2,330,173


32,729


5.57 %


2,073,103


28,648


5.54 %


1,948,230


26,273


5.47 %


1,918,356


26,293


5.45 %

Commercial real estate loans

3,468,667


53,345


6.02 %


3,377,740


51,761


6.00 %


2,836,757


43,457


6.06 %


2,879,607


56,508


7.85 %


2,983,946


46,933


6.15 %

Commercial loans

2,441,346


42,447


6.80 %


2,278,859


41,519


7.13 %


2,102,115


37,287


7.02 %


2,053,213


36,012


7.02 %


1,932,427


35,404


7.17 %

Total loans receivable (a) (b) (d)

12,982,499


184,844


5.65 %


12,568,497


178,475


5.63 %


11,248,954


155,635


5.55 %


11,176,516


165,351


6.00 %


11,204,781


156,538


5.56 %

Mortgage-backed securities (c)

1,892,074


14,071


2.97 %


1,810,209


12,668


2.80 %


1,790,423


12,154


2.72 %


1,773,402


11,730


2.65 %


1,769,151


11,514


2.60 %

Investment securities (c) (d)

309,147


2,339


3.03 %


301,719


2,153


2.85 %


266,053


1,668


2.51 %


263,825


1,599


2.43 %


264,840


1,575


2.38 %

FHLB stock, at cost

32,876


701


8.46 %


30,434


652


8.51 %


17,838


318


7.15 %


20,862


366


7.11 %


21,237


392


7.35 %

Other interest-earning deposits

170,370


1,905


4.37 %


164,131


1,700


4.05 %


220,416


2,673


4.85 %


243,412


2,416


3.97 %


132,273


1,554


4.60 %

Total interest-earning assets

15,386,966


203,860


5.26 %


14,874,990


195,648


5.22 %


13,543,684


172,448


5.11 %


13,478,017


181,462


5.46 %


13,392,282


171,573


5.10 %

Noninterest-earning assets (e)

1,107,042






1,067,450






924,513






924,466






930,582





Total assets

$   16,494,008






$   15,942,440






$   14,468,197






$   14,402,483






$   14,322,864





Liabilities and shareholders' equity:






























Interest-bearing liabilities:






























Savings deposits

$  2,362,215


6,324


1.06 %


$  2,343,137


6,679


1.13 %


$  2,212,175


6,521


1.18 %


$  2,194,305


6,452


1.19 %


$  2,152,955


6,549


1.21 %

Interest-bearing demand deposits

2,940,296


9,084


1.23 %


2,782,369


8,258


1.18 %


2,609,887


7,192


1.11 %


2,593,228


7,063


1.10 %


2,636,279


7,894


1.19 %

Money market deposit accounts

2,522,362


12,499


1.97 %


2,392,748


11,785


1.95 %


2,121,088


9,658


1.83 %


2,082,948


9,306


1.81 %


1,980,769


8,880


1.78 %

Time deposits

2,841,234


25,040


3.50 %


2,818,526


25,158


3.54 %


2,599,254


23,455


3.62 %


2,629,388


24,504


3.78 %


2,671,343


27,531


4.10 %

Total interest bearing deposits (g)

10,666,107


52,947


1.97 %


10,336,780


51,880


1.99 %


9,542,404


46,826


1.97 %


9,499,869


47,325


2.02 %


9,441,346


50,854


2.14 %

Borrowed funds (f)

354,894


3,425


3.83 %


347,357


3,366


3.84 %


208,342


2,046


3.94 %


224,122


2,206


3.99 %


222,506


2,246


4.02 %

Subordinated debt

114,800


2,285


7.79 %


114,745


1,335


4.65 %


114,661


1,148


4.00 %


114,576


1,148


4.01 %


114,488


1,148


4.01 %

Junior subordinated debentures

130,051


2,002


6.02 %


129,986


2,123


6.39 %


129,921


2,106


6.41 %


129,856


2,098


6.46 %


129,791


2,277


6.87 %

Total interest-bearing liabilities

11,265,852


60,659


2.14 %


10,928,868


58,704


2.13 %


9,995,328


52,126


2.09 %


9,968,423


52,777


2.15 %


9,908,131


56,525


2.27 %

Noninterest-bearing demand deposits (g)

3,105,108






2,959,871






2,611,597






2,588,502






2,587,071





Noninterest-bearing liabilities

252,960






244,306






225,306






228,947






238,434





Total liabilities

14,623,920






14,133,045






12,832,231






12,785,872






12,733,636





Shareholders' equity

1,870,088






1,809,395






1,635,966






1,616,611






1,589,228





Total liabilities and shareholders' equity

$   16,494,008






$   15,942,440






$   14,468,197






$   14,402,483






$   14,322,864





Net interest income/Interest rate spread FTE



143,201


3.12 %




136,944


3.09 %




120,322


3.02 %




128,685


3.31 %




115,048


2.83 %

Net interest-earning assets/Net interest margin
FTE

$  4,121,114




3.69 %


$  3,946,122




3.65 %


$  3,548,356




3.56 %


$  3,509,594




3.87 %


$  3,484,151




3.42 %

Tax equivalent adjustment (d)



1,035






970






878






867






851



Net interest income, GAAP basis



142,166






135,974






119,444






127,818






114,197



Ratio of interest-earning assets to interest-
bearing liabilities

1.37X






1.36X






1.36X






1.35X






1.35X







(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 1.53%, 1.55%, 1.55%, 1.59%, and 1.68%, 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,


2025


2024


Average

balance


Interest


Avg.

yield/

cost (h)


Average

balance


Interest


Avg.

yield/

cost (h)

Assets












Interest-earning assets:












Residential mortgage loans

$     3,138,768


123,572


3.94 %


$     3,308,977


127,499


3.85 %

Home equity loans

1,306,128


76,311


5.84 %


1,177,431


68,694


5.83 %

Consumer loans

2,192,675


122,086


5.57 %


1,988,806


103,694


5.21 %

Commercial real estate loans

3,142,956


205,132


6.44 %


3,000,431


183,491


6.02 %

Commercial loans

2,220,111


157,273


6.99 %


1,809,574


135,326


7.36 %

Loans receivable (a) (b) (d)

12,000,638


684,374


5.70 %


11,285,219


618,704


5.48 %

Mortgage-backed securities (c)

1,816,835


50,623


2.79 %


1,739,141


39,793


2.29 %

Investment securities (c) (d)

285,355


7,776


2.72 %


287,118


5,825


2.03 %

FHLB stock, at cost

25,549


2,037


7.97 %


24,948


1,891


7.58 %

Other interest-earning deposits

199,582


8,693


4.30 %


126,097


6,489


5.15 %

Total interest-earning assets

14,327,959


753,503


5.26 %


13,462,523


672,702


5.00 %

Noninterest-earning assets (e)

1,006,230






922,648

















Total assets

$   15,334,189






$   14,385,171

















Liabilities and shareholders' equity












Interest-bearing liabilities:












Savings deposits

$     2,278,597


25,976


1.14 %


$     2,142,852


24,222


1.13 %

Interest-bearing demand deposits

2,732,535


31,597


1.16 %


2,574,810


27,394


1.06 %

Money market deposit accounts

2,281,300


43,248


1.90 %


1,966,732


34,564


1.76 %

Time deposits

2,722,945


98,157


3.60 %


2,758,157


119,313


4.33 %

Total interest bearing deposits (g)

10,015,377


198,978


1.99 %


9,442,551


205,493


2.18 %

Borrowed funds (f)

284,212


11,044


3.89 %


308,540


13,882


4.50 %

Subordinated debt

114,696


5,916


5.13 %


114,355


4,592


4.02 %

Junior subordinated debentures

129,954


8,328


6.32 %


129,695


9,652


7.32 %

Total interest-bearing liabilities

10,544,239


224,266


2.13 %


9,995,141


233,619


2.34 %

Noninterest-bearing demand deposits (g)

2,818,078






2,582,540





Noninterest-bearing liabilities

237,963






244,036

















Total liabilities

13,600,280






12,821,717

















Shareholders' equity

1,733,909






1,563,454

















Total liabilities and shareholders' equity

$   15,334,189






$   14,385,171

















Net interest income/Interest rate spread



529,237


3.13 %




439,083


2.66 %













Net interest-earning assets/Net interest margin

$     3,783,720




3.69 %


$     3,467,382




3.26 %













Tax equivalent adjustment (d)



3,835






3,505



Net interest income, GAAP basis



525,402






435,578















Ratio of interest-earning assets to interest-bearing liabilities

1.36X






1.35X







(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 1.55% and 1.71%, respectively.

 

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SOURCE Northwest Bancshares, Inc.