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Northwest Bancshares, Inc. Announces First Quarter 2024 Earnings and Quarterly Dividend

NWBI

118th consecutive quarterly dividend of $0.20 per share declared.

COLUMBUS, Ohio, April 22, 2024 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2024 of $29 million, or $0.23 per diluted share. This represents a decrease of $5 million, or 13%, compared to the same quarter last year, 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 March 31, 2024 were 7.57% and 0.81% compared to 9.11% and 0.97% for the same quarter last year.

(PRNewsfoto/Northwest Bancshares, Inc.)

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on May 15, 2024 to shareholders of record as of May 2, 2024. This is the 118th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of March 31, 2024, this represents an annualized dividend yield of approximately 6.9%.

The Company is announcing its intentions to pursue a limited, strategic repositioning of the securities portfolio to optimize its balance sheet by liquidating lower-yielding securities in an effort to generate additional future earnings. This initiative will be accomplished through the sale of up to 15% of the Company's investment securities portfolio. The securities losses recognized will be limited to $40 million, equivalent to approximately $30 million after tax. The Company expects a yield pickup of 375-400 basis points from the repositioning and will look to manage the payback period so that it will be approximately three years. The characteristics of investment securities to be sold have an average yield less than 2.00% with a remaining maturity of greater than four years. The proceeds will be used to reduce borrowings in the short term while also opportunistically reinvesting into securities with similar risk, maturity and duration characteristics.

Louis J. Torchio, President and CEO, added, "As part of the Company's ongoing efforts to enhance future profitability, we have proactively chosen to reposition our securities portfolio. By executing this strategic securities transaction, we will significantly improve the Company's future earnings potential while simultaneously maintaining our robust capital levels and liquidity. This strategic move aligns with our commitment to long-term financial stability and growth, ensuring that we are well-positioned to capitalize on future opportunities and navigate any potential challenges in the market."

"In addition, we are proud of our first quarter earnings, which demonstrate our focus and commitment to achieving solid results in a challenging environment. Our strong performance is a testament to our robust business model, dedicated team, and the trust of our customers," added Mr. Torchio. "Despite industry headwinds, we have emerged stronger by staying true to our core values, prioritizing growth and transformation, and maintaining a customer-centric approach. Our first quarter results provide a solid foundation for continued growth. We are grateful for the support of our employees, customers, partners, and shareholders. Together, we will continue driving success and shape the future of our organization."

Balance Sheet Highlights


Quarter ended






March 31, 2024


March 31, 2023


Dollar change


Percent change

Average loans receivable

$ 11,345,308


10,887,132


458,176


4.2 %

Average investments

2,051,058


2,294,393


(243,335)


(10.6) %

Average deposits

11,887,954


11,404,035


483,919


4.2 %

Average borrowed funds

469,697


740,218


(270,521)


(36.5) %

  • Average loans receivable increased 4% from the quarter ended March 31, 2023 driven by commercial loans, which grew by $553 million as we have continued to build-out our commercial lending verticals.
  • Average investments declined 11% from the quarter ended March 31, 2023. The decline in investments was driven by the sale of investment securities during the prior year.
  • Average deposits grew 4% from the quarter ended March 31, 2023 driven by a $1.404 billion increase in our average time deposits as we continued competitively positioning our deposit products. 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 quarter ending March 31, 2023, average borrowings saw a significant 37% reduction, primarily attributable to the strategic pay down of wholesale borrowings. This decrease was made possible by a substantial increase in cash reserves, resulting from a notable rise in the average balance of deposits.

Income Statement Highlights


Quarter ended






March 31, 2024


March 31, 2023


Dollar change


Percent change

Interest income

$ 160,239


134,940


25,299


18.7 %

Interest expense

57,001


22,476


34,525


153.6 %

Net interest income

$ 103,238


112,464


(9,226)


(8.2) %









Net interest margin

3.10 %


3.46 %


N/A



Net interest income decreased 8%, and net interest margin decreased to 3.10% from the quarter ended March 31, 2023. This decrease in net interest income resulted primarily from:

  • A $25 million increase in interest income as cash and marketable securities were redeployed into higher yielding loans, which, along with higher market interest rates, caused the yield on loans to improve to 5.33% for the quarter ended March 31, 2024 from 4.63% for the quarter ended March 31, 2023.
  • A $35 million increase in interest expense as the result of higher costs of deposits and borrowings due to the higher interest rate environment and competitive pressure for liquidity. The cost of interest-bearing liabilities increased to 2.28% for the quarter ended March 31, 2024 from 0.96% for the quarter ended March 31, 2023.


Quarter ended






March 31, 2024


March 31, 2023


Dollar change


Percent change

Provision for credit losses - loans

$ 4,234


4,870


(636)


(13.1) %

Provision for credit losses - unfunded commitments

(799)


126


(925)


(734.1) %

Total provision for credit losses expense

$ 3,435


4,996


(1,561)


(31.2) %

The provision for credit losses decreased by 31% from the quarter ended March 31, 2023 primarily driven by a decline in our reserves for unfunded commitments in the current period based on the timing of origination and funding of commercial construction loans and lines of credit coupled with improvements in the economic forecasts. Additionally, the Company continued to experience low levels of classified loans with a slight increase to $229 million or 1.99% of total loans at March 31, 2024 from $209 million, or 1.88% of total loans, at March 31, 2023.


Quarter ended






March 31, 2024


March 31, 2023


Dollar change


Percent change

Noninterest income:








Gain on sale of SBA loans

$ 873


279


594


212.9 %

Service charges and fees

15,523


13,189


2,334


17.7 %

Trust and other financial services income

7,127


6,449


678


10.5 %

Gain on real estate owned, net

57


108


(51)


(47.2) %

Income from bank-owned life insurance

1,502


1,269


233


18.4 %

Mortgage banking income

452


524


(72)


(13.7) %

Other operating income

2,429


2,151


278


12.9 %

Total noninterest income

$ 27,963


23,969


3,994


16.7 %

Noninterest income increased 17% from the quarter ended March 31, 2023. This increase was primarily due to an increase in service charges and fees driven by deposit-related fees based on customer activity as well as commercial loans fees, gain on sale of SBA loans, and improvements in trust and other financial services income.


Quarter ended






March 31, 2024


March 31, 2023


Dollar change


Percent change

Noninterest expense:








Personnel expense

$ 51,540


46,604


4,936


10.6 %

Non personnel expense

38,484


40,846


(2,362)


(5.8) %

Total noninterest expense

$ 90,024


87,450


2,574


2.9 %

Noninterest expense increased 3% from the quarter ended March 31, 2023. This increase primarily resulted from a rise in personnel expense driven by the build-out of the commercial business and related credit, risk management and internal audit support functions over the past year. This was offset by a decrease in non-personnel expense related to a decline in merger, asset disposition and restructuring expense due to the severance and fixed asset charges related to the branch optimization and personnel reduction announced during the fourth quarter of 2022 as well as improvements in marketing expense and professional services expense.

The provision for income taxes decreased by $1.7 million, or 17%, to $8.6 million for the quarter ended March 31, 2024 from $10.3 million for the quarter ended March 31, 2023 due primarily to lower income before income taxes.

Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank. Founded in 1896 Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of March 31, 2024, Northwest operated 134 full-service branches and eight free standing drive-through facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line 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 limitations, 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, including COVID-19, war or act of terrorism. 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.

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(dollars in thousands, except per share amounts)



March 31,
2024


December 31,
2023


March 31,
2023

Assets






Cash and cash equivalents

$ 119,319


122,260


96,497

Marketable securities available-for-sale (amortized cost of $1,298,108, $1,240,003 and $1,402,805,

respectively)

1,094,009


1,043,359


1,205,510

Marketable securities held-to-maturity (fair value of $680,353, $699,506 and $750,345, respectively)

801,107


814,839


866,022

Total cash and cash equivalents and marketable securities

2,014,435


1,980,458


2,168,029







Loans held-for-sale

8,082


8,768


7,006

Residential mortgage loans

3,374,980


3,419,417


3,499,078

Home equity loans

1,196,607


1,227,858


1,281,546

Consumer loans

2,118,367


2,126,027


2,232,133

Commercial real estate loans

3,028,314


2,974,010


2,826,485

Commercial loans

1,774,896


1,658,729


1,246,023

Total loans receivable

11,501,246


11,414,809


11,092,271

Allowance for credit losses

(124,897)


(125,243)


(121,257)

Loans receivable, net

11,376,349


11,289,566


10,971,014







FHLB stock, at cost

30,811


30,146


41,519

Accrued interest receivable

50,680


47,353


36,177

Real estate owned, net

50


104


524

Premises and equipment, net

130,565


138,838


140,301

Bank-owned life insurance

252,842


251,895


256,310

Goodwill

380,997


380,997


380,997

Other intangible assets, net

4,589


5,290


7,651

Other assets

268,945


294,458


191,294

Total assets

$ 14,510,263


14,419,105


14,193,816

Liabilities and shareholders' equity






Liabilities






Noninterest-bearing demand deposits

$ 2,618,379


2,669,023


2,896,092

Interest-bearing demand deposits

2,557,866


2,634,546


2,541,503

Money market deposit accounts

1,952,537


1,968,218


2,328,050

Savings deposits

2,156,048


2,105,234


2,194,743

Time deposits

2,786,814


2,602,881


1,576,791

Total deposits

12,071,644


11,979,902


11,537,179







Borrowed funds

400,783


398,895


688,641

Subordinated debt

114,276


114,189


113,927

Junior subordinated debentures

129,639


129,574


129,379

Advances by borrowers for taxes and insurance

46,970


45,253


49,893

Accrued interest payable

17,395


13,669


2,236

Other liabilities

177,107


186,306


159,286

Total liabilities

12,957,814


12,867,788


12,680,541

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, 127,253,189, 127,110,453 and

127,065,400 shares issued and outstanding, respectively

1,273


1,271


1,271

Additional paid-in capital

1,026,173


1,024,852


1,020,855

Retained earnings

678,427


674,686


649,672

Accumulated other comprehensive loss

(153,424)


(149,492)


(158,523)

Total shareholders' equity

1,552,449


1,551,317


1,513,275

Total liabilities and shareholders' equity

$ 14,510,263


14,419,105


14,193,816







Equity to assets

10.70 %


10.76 %


10.66 %

Tangible common equity to assets*

8.26 %


8.30 %


8.15 %

Book value per share

$ 12.20


12.20


11.91

Tangible book value per share*

$ 9.17


9.17


8.85

Closing market price per share

$ 11.65


12.48


12.03

Full time equivalent employees

2,060


2,098


2,066

Number of banking offices

142


142


150



*

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

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)



Quarter ended


March 31,
2024


December 31,
2023


September 30,
2023


June 30,
2023


March 31,
2023






Interest income:










Loans receivable

$ 149,571


146,523


140,667


132,724


123,745

Mortgage-backed securities

7,944


7,951


8,072


8,326


8,537

Taxable investment securities

794


786


786


841


845

Tax-free investment securities

491


492


491


667


700

FHLB stock dividends

607


666


668


844


690

Interest-earning deposits

832


970


914


594


423

Total interest income

160,239


157,388


151,598


143,996


134,940

Interest expense:










Deposits

47,686


40,600


31,688


21,817


11,238

Borrowed funds

9,315


10,486


11,542


13,630


11,238

Total interest expense

57,001


51,086


43,230


35,447


22,476

Net interest income

103,238


106,302


108,368


108,549


112,464

Provision for credit losses - loans

4,234


3,801


3,983


6,010


4,870

Provision for credit losses - unfunded commitments

(799)


4,145


(2,981)


2,920


126

Net interest income after provision for credit losses

99,803


98,356


107,366


99,619


107,468

Noninterest income:










Loss on sale of investments


(1)



(8,306)


Gain on sale of mortgage servicing rights




8,305


Gain on sale of SBA loans

873


388


301


832


279

Gain on sale of loans


726




Service charges and fees

15,523


15,922


15,270


14,833


13,189

Trust and other financial services income

7,127


6,884


7,085


6,866


6,449

Gain on real estate owned, net

57


1,084


29


785


108

Income from bank-owned life insurance

1,502


1,454


4,561


1,304


1,269

Mortgage banking income

452


247


632


1,028


524

Other operating income

2,429


2,465


3,010


4,150


2,151

Total noninterest income

27,963


29,169


30,888


29,797


23,969

Noninterest expense:










Compensation and employee benefits

51,540


50,194


51,243


47,650


46,604

Premises and occupancy costs

7,627


7,049


7,052


7,579


7,471

Office operations

2,767


3,747


3,398


2,800


3,010

Collections expense

336


328


551


429


387

Processing expenses

14,725


15,017


14,672


14,648


14,350

Marketing expenses

2,149


1,317


2,379


2,856


2,892

Federal deposit insurance premiums

3,023


2,643


2,341


2,064


2,223

Professional services

4,065


6,255


3,002


3,804


4,758

Amortization of intangible assets

701


724


795


842


909

Real estate owned expense

66


51


141


83


181

Merger, asset disposition and restructuring expense

955


2,354



1,593


2,802

Other expenses

2,070


997


1,996


1,510


1,863

Total noninterest expense

90,024


90,676


87,570


85,858


87,450

Income before income taxes

37,742


36,849


50,684


43,558


43,987

Income tax expense

8,579


7,835


11,464


10,514


10,308

Net income

$ 29,163


29,014


39,220


33,044


33,679











Basic earnings per share

$ 0.23


0.23


0.31


0.26


0.27

Diluted earnings per share

$ 0.23


0.23


0.31


0.26


0.26











Annualized return on average equity

7.57 %


7.64 %


10.27 %


8.72 %


9.11 %

Annualized return on average assets

0.81 %


0.80 %


1.08 %


0.93 %


0.97 %

Annualized return on average tangible common equity *

10.08 %


10.28 %


13.80 %


11.71 %


12.31 %

Efficiency ratio

68.62 %


66.93 %


62.88 %


62.06 %


64.10 %

Efficiency ratio, excluding certain items **

67.35 %


64.66 %


62.31 %


60.30 %


61.38 %

Annualized noninterest expense to average assets

2.51 %


2.51 %


2.42 %


2.42 %


2.51 %

Annualized noninterest expense to average assets, excluding certain items**

2.47 %


2.43 %


2.39 %


2.35 %


2.40 %



*

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

Reconciliation of Non-GAAP Financial Measures (Unaudited) *

(dollars in thousands, except per share amounts)



Quarter ended March 31,


2024


2023

Reconciliation of net income to adjusted net operating income:




Net income (GAAP)

$ 29,163


33,679

Non-GAAP adjustments




Add: merger, asset disposition and restructuring expense

955


2,802

Less: tax benefit of merger, asset disposition and restructuring expense

(267)


(785)

Adjusted net operating income (non-GAAP)

$ 29,851


35,696

Diluted earnings per share (GAAP)

$ 0.23


0.26

Diluted adjusted operating earnings per share (non-GAAP)

$ 0.23


0.28





Average equity

$ 1,549,870


1,498,825

Average assets

14,408,612


14,121,496

Annualized return on average equity (GAAP)

7.57 %


9.11 %

Annualized return on average assets (GAAP)

0.81 %


0.97 %

Annualized return on average equity, excluding merger, asset disposition and restructuring expense, net of tax (non-GAAP)

7.75 %


9.66 %

Annualized return on average assets, excluding merger, asset disposition and restructuring expense, net of tax (non-GAAP)

0.83 %


1.03 %






The following non-GAAP financial measures used by the Company provide information useful to investors in understanding our operating performance and trends, and facilitate comparisons with the performance of our peers. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's Consolidated Statements of Financial Condition.



March 31,
2024


December 31,
2023


March 31,
2023

Tangible common equity to assets






Total shareholders' equity

$ 1,552,449


1,551,317


1,513,275

Less: goodwill and intangible assets

(385,586)


(386,287)


(388,648)

Tangible common equity

$ 1,166,863


1,165,030


1,124,627







Total assets

$ 14,510,263


14,419,105


14,193,816

Less: goodwill and intangible assets

(385,586)


(386,287)


(388,648)

Tangible assets

$ 14,124,677


14,032,818


13,805,168







Tangible common equity to tangible assets

8.26 %


8.30 %


8.15 %







Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments






Tangible common equity

$ 1,166,863


1,165,030


1,124,627

Less: unrealized losses on held to maturity investments

(120,754)


(115,334)


(115,677)

Add: deferred taxes on unrealized losses on held to maturity investments

33,811


32,294


32,390

Tangible common equity, including unrealized losses on held-to-maturity investments

$ 1,079,920


1,081,990


1,041,340







Tangible assets

$ 14,124,677


14,032,818


13,805,168







Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments

7.65 %


7.71 %


7.54 %







Tangible book value per share






Tangible common equity

$ 1,166,863


1,165,030


1,124,627

Common shares outstanding

127,253,189


127,110,453


127,065,400

Tangible book value per share

9.17


9.17


8.85

Northwest Bancshares, Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures (Unaudited) *

(dollars in thousands, except per share amounts)


The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's Consolidated Statements of Income.



Quarter ended


March 31,
2024


December 31,
2023


September 30,
2023


June 30,
2023


March 31,
2023






Annualized return on average tangible common equity










Net income

$ 29,163


29,014


39,220


33,044


33,679











Average shareholders' equity

1,549,870


1,506,895


1,515,287


1,519,990


1,498,825

Less: average goodwill and intangible assets

(386,038)


(386,761)


(387,523)


(388,354)


(389,236)

Average tangible common equity

$ 1,163,832


1,120,134


1,127,764


1,131,636


1,109,589











Annualized return on average tangible common equity

10.08 %


10.28 %


13.80 %


11.71 %


12.31 %











Efficiency ratio, excluding amortization and merger, asset disposition and restructuring expenses










Non-interest expense

$ 90,024


90,676


87,570


85,858


87,450

Less: amortization expense

(701)


(724)


(795)


(842)


(909)

Less: merger, asset disposition and restructuring expenses

(955)


(2,354)



(1,593)


(2,802)

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

$ 88,368


87,598


86,775


83,423


83,739











Net interest income

$ 103,238


106,302


108,368


108,549


112,464

Non-interest income

27,963


29,169


30,888


29,797


23,969

Net interest income plus non-interest income

$ 131,201


135,471


139,256


138,346


136,433











Efficiency ratio, excluding amortization and merger, asset disposition and restructuring expenses

67.35 %


64.66 %


62.31 %


60.30 %


61.38 %











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

$ 88,368


87,598


86,775


83,423


83,739

Average assets

14,408,612


14,329,020


14,379,323


14,245,917


14,121,496

Annualized non-interest expense to average assets, excluding amortization and merger, asset disposition

and restructuring expense

2.47 %


2.43 %


2.39 %


2.35 %


2.40 %



*

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. The net tax effect was calculated using statutory tax rates of approximately 28.0%. The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.

Northwest Bancshares, Inc. and Subsidiaries

Deposits (Unaudited)

(dollars in thousands)


Generally, deposits in excess of $250,000 are not federally insured. The following table provides details regarding the Company's uninsured deposits portfolio:



As of March 31, 2024


Balance


Percent of
total deposits


Number of
relationships

Uninsured deposits per the Call Report (1)

$ 2,806,650


23.25 %


4,965

Less intercompany deposit accounts

1,019,792


8.45 %


12

Less collateralized deposit accounts

408,083


3.38 %


255

Uninsured deposits excluding intercompany and collateralized accounts

$ 1,378,775


11.42 %


4,698



(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 $19.2 million, or 0.16% of total deposits, as of March 31, 2024. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $103.0 million, or 0.85% of total deposits, as of March 31, 2024. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $293,000 as of March 31, 2024.


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



As of March 31, 2024


Balance


Percent of
total deposits


Number of
accounts

Personal noninterest bearing demand deposits

$ 1,369,294


11.34 %


287,824

Business noninterest bearing demand deposits

1,249,085


10.35


43,868

Personal interest-bearing demand deposits

1,427,140


11.82


57,909

Business interest-bearing demand deposits

1,130,726


9.37


7,921

Personal money market deposits

1,393,532


11.54


25,156

Business money market deposits

559,005


4.63


2,805

Savings deposits

2,156,048


17.86


194,542

Time deposits

2,786,814


23.09


79,611

Total deposits

$ 12,071,644


100.00 %


699,636

Our average deposit account balance as of March 31, 2024 was $17,000. The Company's insured cash sweep deposit balance was $393.2 million as of March 31, 2024.


The following table provides additional details regarding the Company's deposit portfolio over time:



9/30/2022


12/31/2022


3/31/2023


6/30/2023


9/30/2023


12/31/2023


3/31/2024

Personal noninterest bearing demand deposits

$ 1,413,781


1,412,227


1,428,232


1,397,167


1,375,144


1,357,875


1,369,294

Business noninterest bearing demand deposits

1,680,339


1,581,016


1,467,860


1,423,396


1,399,147


1,311,148


1,249,085

Personal interest-bearing demand deposits

1,742,173


1,718,806


1,627,546


1,535,254


1,477,617


1,464,058


1,427,140

Business interest-bearing demand deposits

498,937


499,059


466,105


624,252


689,914


812,433


805,069

Municipal demand deposits

571,620


468,566


447,852


418,147


430,549


358,055


325,657

Personal money market deposits

1,949,379


1,832,583


1,626,614


1,511,652


1,463,689


1,435,939


1,393,532

Business money market deposits

627,634


624,986


701,436


642,601


579,124


532,279


559,005

Savings deposits

2,327,419


2,275,020


2,194,743


2,120,215


2,116,360


2,105,234


2,156,048

Time deposits

1,067,110


1,052,285


1,576,791


1,989,711


2,258,338


2,602,881


2,786,814

Total deposits

$ 11,878,392


11,464,548


11,537,179


11,662,395


11,789,882


11,979,902


12,071,644

Northwest Bancshares, Inc. and Subsidiaries

Regulatory Capital Requirements (Unaudited)

(dollars in thousands)



At March 31, 2024


Actual


Minimum capital

requirements (1)


Well capitalized

requirements


Amount


Ratio


Amount


Ratio


Amount


Ratio

Total capital (to risk weighted assets)












Northwest Bancshares, Inc.

$ 1,805,374


15.951 %


$ 1,188,406


10.500 %


$ 1,131,815


10.000 %

Northwest Bank

1,529,840


13.529 %


1,187,335


10.500 %


1,130,795


10.000 %













Tier 1 capital (to risk weighted assets)












Northwest Bancshares, Inc.

1,555,043


13.739 %


962,043


8.500 %


905,452


8.000 %

Northwest Bank

1,393,786


12.326 %


961,176


8.500 %


904,636


8.000 %













Common equity tier 1 capital (to risk weighted assets)












Northwest Bancshares, Inc.

1,429,393


12.629 %


792,270


7.000 %


735,680


6.500 %

Northwest Bank

1,393,786


12.326 %


791,557


7.000 %


735,017


6.500 %













Tier 1 capital (leverage) (to average assets)












Northwest Bancshares, Inc.

1,555,043


10.828 %


574,453


4.000 %


718,066


5.000 %

Northwest Bank

1,393,786


9.712 %


574,060


4.000 %


717,575


5.000 %



(1)

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)




March 31, 2024

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 one year through five years


$ 20,000



(1,204)


18,796


2.65

Due after ten years


48,182



(10,260)


37,922


6.13












Debt issued by government sponsored enterprises:











Due after one year through five years


45,987



(5,819)


40,168


4.11

Due after five years through ten years


360



(9)


351


1.73












Municipal securities:











Due after one year through five years


4,279


14


(426)


3,867


3.79

Due after five years through ten years


27,921


47


(1,886)


26,082


6.68

Due after ten years


53,464



(9,142)


44,322


10.81












Corporate debt issues:











Due after five years through ten years


8,467



(833)


7,634


5.14












Residential mortgage-backed agency securities:











Fixed rate pass-through


232,854


93


(26,711)


206,236


6.55

Variable rate pass-through


6,738


12


(69)


6,681


3.82

Fixed rate agency CMOs


776,087



(147,127)


628,960


5.30

Variable rate agency CMOs


73,769


35


(814)


72,990


5.01

Total residential mortgage-backed agency securities


1,089,448


140


(174,721)


914,867


5.55

Total marketable securities available-for-sale


$ 1,298,108


201


(204,300)


1,094,009


5.69












Marketable securities held-to-maturity











Government sponsored











Due after one year through five years


$ 89,472



(11,232)


78,240


3.89

Due after five years through ten years


34,987



(5,877)


29,110


5.31












Residential mortgage-backed agency securities:











Fixed rate pass-through


144,158



(21,062)


123,096


5.06

Variable rate pass-through


432


1



433


4.39

Fixed rate agency CMOs


531,529



(82,578)


448,951


6.81

Variable rate agency CMOs


529



(6)


523


4.96

Total residential mortgage-backed agency securities


676,648


1


(103,646)


573,003


6.44

Total marketable securities held-to-maturity


$ 801,107


1


(120,755)


680,353


6.10

Northwest Bancshares, Inc. and Subsidiaries

Borrowed Funds (Unaudited)

(dollars in thousands)



March 31, 2024


Amount


Average rate

Term notes payable to the FHLB of Pittsburgh, due within one year

$ 275,000


5.65 %

Notes payable to the FHLB of Pittsburgh, due within one year

55,600


5.67 %

Total term notes payable to the FHLB

330,600


5.66 %





Collateralized borrowings, due within one year

29,882


1.62 %

Collateral received, due within one year

40,301


5.08 %

Subordinated debentures, net of issuance costs

114,276


4.28 %

Junior subordinated debentures

129,639


7.61 %

Total borrowed funds *

$ 644,698


5.58 %



*

As of March 31, 2024, the Company had $3.3 billion of additional borrowing capacity available with the FHLB of Pittsburgh, including a $250.0 million overnight line of credit, which had a $55.6 million drawn balance, as well as $264.1 million of borrowing capacity available with the Federal Reserve Bank and $105.0 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 March 31, 2024:




March 31, 2024

Property type


Percent of portfolio

5 or more unit dwelling


15.2 %

Nursing home


12.8

Retail building


11.8

Commercial office building - non-owner occupied


9.1

Manufacturing & industrial building


5.0

Residential acquisition & development - 1-4 family, townhouses and apartments


4.3

Multi-use building - commercial, retail and residential


4.1

Warehouse/storage building


3.9

Multi-use building - office and warehouse


3.3

Commercial office building - owner occupied


3.3

Other medical facility


3.1

Single family dwelling


2.7

Student housing


2.2

Hotel/motel


2.1

Agricultural real estate


2.0

2-4 family


2.0

All other


13.1

Total


100.0 %


The following table describes the collateral of our commercial real estate portfolio by state at March 31, 2024:




March 31, 2024

State


Percent of portfolio

New York


33.0 %

Pennsylvania


30.2

Ohio


20.3

Indiana


8.1

All other


8.4

Total


100.0 %

Northwest Bancshares, Inc. and Subsidiaries

Asset Quality (Unaudited)

(dollars in thousands)



March 31,
2024


December 31,
2023


September 30,
2023


June 30,
2023


March 31,
2023

Nonaccrual loans current:










Residential mortgage loans

$ 1,351


959


1,951


1,559


1,423

Home equity loans

974


871


947


1,089


1,084

Consumer loans

1,295


1,051


1,049


1,009


911

Commercial real estate loans

66,895


64,603


44,639


48,468


50,045

Commercial loans

934


1,182


1,369


995


1,468

Total nonaccrual loans current

$ 71,449


68,666


49,955


53,120


54,931

Nonaccrual loans delinquent 30 days to 59 days:










Residential mortgage loans

$ 1,454


933


48


49


688

Home equity loans

125


174


92


37


18

Consumer loans

294


225


274


309


223

Commercial real estate loans

574


51


1,913


1,697


1,900

Commercial loans

161


139


90


855


341

Total nonaccrual loans delinquent 30 days to 59 days

$ 2,608


1,522


2,417


2,947


3,170

Nonaccrual loans delinquent 60 days to 89 days:










Residential mortgage loans

$ —


511


66


185


919

Home equity loans

488


347


319


363


338

Consumer loans

381


557


312


360


340

Commercial real estate loans

52


831


212


210


1,355

Commercial loans

201


56


291


245


126

Total nonaccrual loans delinquent 60 days to 89 days

$ 1,122


2,302


1,200


1,363


3,078

Nonaccrual loans delinquent 90 days or more:










Residential mortgage loans

$ 4,304


6,324


7,695


6,290


3,300

Home equity loans

2,822


3,100


2,073


1,965


2,190

Consumer loans

2,659


3,212


2,463


2,033


2,791

Commercial real estate loans

6,931


6,488


8,416


8,575


8,010

Commercial loans

3,165


2,770


2,435


2,296


1,139

Total nonaccrual loans delinquent 90 days or more

$ 19,881


21,894


23,082


21,159


17,430

Total nonaccrual loans

$ 95,060


94,384


76,654


78,589


78,609

Total nonaccrual loans

$ 95,060


94,384


76,654


78,589


78,609

Loans 90 days past due and still accruing

2,452


2,698


728


532


652

Nonperforming loans

97,512


97,082


77,382


79,121


79,261

Real estate owned, net

50


104


363


371


524

Nonperforming assets

$ 97,562


97,186


77,745


79,492


79,785











Nonperforming loans to total loans

0.85 %


0.85 %


0.68 %


0.70 %


0.71 %

Nonperforming assets to total assets

0.67 %


0.67 %


0.54 %


0.56 %


0.56 %

Allowance for credit losses to total loans

1.09 %


1.10 %


1.10 %


1.10 %


1.09 %

Allowance for credit losses to nonperforming loans

128.08 %


129.01 %


161.33 %


157.26 %


152.98 %

Northwest Bancshares, Inc. and Subsidiaries

Loans by Credit Quality Indicators (Unaudited)

(dollars in thousands)


At March 31, 2024


Pass


Special

mention *


Substandard
**


Doubtful


Loss


Loans

receivable

Personal Banking:













Residential mortgage loans


$ 3,370,307



12,541




3,382,848

Home equity loans


1,191,957



4,650




1,196,607

Consumer loans


2,113,050



5,317




2,118,367

Total Personal Banking


6,675,314



22,508




6,697,822

Commercial Banking:













Commercial real estate loans


2,714,857


131,247


182,424




3,028,528

Commercial loans


1,698,519


52,461


23,916




1,774,896

Total Commercial Banking


4,413,376


183,708


206,340




4,803,424

Total loans


$ 11,088,690


183,708


228,848




11,501,246

At December 31, 2023













Personal Banking:













Residential mortgage loans


$ 3,413,846



14,339




3,428,185

Home equity loans


1,223,097



4,761




1,227,858

Consumer loans


2,120,216



5,811




2,126,027

Total Personal Banking


6,757,159



24,911




6,782,070

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


$ 11,065,548


130,794


218,467




11,414,809

At September 30, 2023













Personal Banking:













Residential mortgage loans


$ 3,459,251



13,512




3,472,763

Home equity loans


1,254,985



3,780




1,258,765

Consumer loans


2,150,464



4,655




2,155,119

Total Personal Banking


6,864,700



21,947




6,886,647

Commercial Banking:













Commercial real estate loans


2,632,472


123,935


166,610




2,923,017

Commercial loans


1,476,833


3,690


20,086




1,500,609

Total Commercial Banking


4,109,305


127,625


186,696




4,423,626

Total loans


$ 10,974,005


127,625


208,643




11,310,273

At June 30, 2023













Personal Banking:













Residential mortgage loans


$ 3,483,098



12,059




3,495,157

Home equity loans


1,272,363



3,699




1,276,062

Consumer loans


2,196,938



4,124




2,201,062

Total Personal Banking


6,952,399



19,882




6,972,281

Commercial Banking:













Commercial real estate loans


2,649,535


74,170


171,519




2,895,224

Commercial loans


1,377,981


3,040


22,705




1,403,726

Total Commercial Banking


4,027,516


77,210


194,224




4,298,950

Total loans


$ 10,979,915


77,210


214,106




11,271,231

At March 31, 2023













Personal Banking:













Residential mortgage loans


$ 3,499,135



6,330




3,505,465

Home equity loans


1,277,915



3,631




1,281,546

Consumer loans


2,227,379



4,754




2,232,133

Total Personal Banking


7,004,429



14,715




7,019,144

Commercial Banking:













Commercial real estate loans


2,585,676


69,837


171,591




2,827,104

Commercial loans


1,217,344


6,381


22,298




1,246,023

Total Commercial Banking


3,803,020


76,218


193,889




4,073,127

Total loans


$ 10,807,449


76,218


208,604




11,092,271



*

Includes $2.4 million, $7.8 million, $6.9 million, $4.9 million, and $7.4 million of acquired loans at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively.

**

Includes $27.2 million, $20.3 million, $28.9 million, $31.2 million, and $31.9 million of acquired loans at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively.

Northwest Bancshares, Inc. and Subsidiaries

Loan Delinquency (Unaudited)

(dollars in thousands)



March 31,
2024


*


December 31,
2023


*


September 30,
2023


*


June 30,
2023


*


March 31,
2023


*

(Number of loans and dollar amount of loans)






























Loans delinquent 30 days to 59 days:






























Residential mortgage loans

351


$ 38,502


1.1 %


307


$ 30,041


0.9 %


6


$ 573


— %


14


$ 627


— %


259


$ 26,992


0.8 %

Home equity loans

113


4,608


0.4 %


121


5,761


0.5 %


112


4,707


0.4 %


92


3,395


0.3 %


111


4,235


0.3 %

Consumer loans

737


9,911


0.5 %


896


11,211


0.5 %


733


9,874


0.5 %


602


7,955


0.4 %


587


6,930


0.3 %

Commercial real estate loans

25


6,396


0.2 %


23


3,204


0.1 %


22


3,411


0.1 %


13


2,710


0.1 %


23


4,834


0.2 %

Commercial loans

62


3,091


0.2 %


59


4,196


0.3 %


52


2,847


0.2 %


38


15,658


1.1 %


46


4,253


0.3 %

Total loans delinquent 30 days to 59 days

1,288


$ 62,508


0.5 %


1,406


$ 54,413


0.5 %


925


$ 21,412


0.2 %


759


$ 30,345


0.3 %


1,026


$ 47,244


0.4 %































Loans delinquent 60 days to 89 days:






























Residential mortgage loans

3


$ 70


— %


69


$ 7,796


0.2 %


56


$ 5,395


0.2 %


52


$ 3,521


0.1 %


23


$ 1,922


0.1 %

Home equity loans

26


761


0.1 %


37


982


0.1 %


40


1,341


0.1 %


31


1,614


0.1 %


31


1,061


0.1 %

Consumer loans

231


2,545


0.1 %


322


3,754


0.2 %


236


2,707


0.1 %


250


2,584


0.1 %


185


2,083


0.1 %

Commercial real estate loans

5


807


— %


9


1,031


— %


13


1,588


0.1 %


12


1,288


— %


17


1,949


0.1 %

Commercial loans

27


1,284


0.1 %


16


703


— %


15


981


0.1 %


23


11,092


0.8 %


19


1,088


0.1 %

Total loans delinquent 60 days to 89 days

292


$ 5,467


— %


453


$ 14,266


0.1 %


360


$ 12,012


0.1 %


368


$ 20,099


0.2 %


275


$ 8,103


0.1 %































Loans delinquent 90 days or more: **






























Residential mortgage loans

50


$ 5,813


0.2 %


70


$ 7,995


0.2 %


79


$ 7,695


0.2 %


63


$ 6,290


0.2 %


39


$ 3,300


0.1 %

Home equity loans

71


2,823


0.2 %


81


3,126


0.3 %


73


2,206


0.2 %


68


1,965


0.2 %


65


2,190


0.2 %

Consumer loans

398


3,345


0.2 %


440


3,978


0.2 %


357


3,020


0.1 %


314


2,447


0.1 %


313


3,279


0.1 %

Commercial real estate loans

22


6,931


0.2 %


27


6,712


0.2 %


27


8,416


0.3 %


20


8,575


0.3 %


18


8,010


0.3 %

Commercial loans

62


3,421


0.2 %


53


2,780


0.2 %


39


2,472


0.2 %


38


2,414


0.2 %


24


1,302


0.1 %

Total loans delinquent 90 days or more

603


$ 22,333


0.2 %


671


$ 24,591


0.2 %


575


$ 23,809


0.2 %


503


$ 21,691


0.2 %


459


$ 18,081


0.2 %































Total loans delinquent

2,183


$ 90,308


0.8 %


2,530


$ 93,270


0.8 %


1,860


$ 57,233


0.5 %


1,630


$ 72,135


0.6 %


1,760


$ 73,428


0.7 %



*

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

**

Includes purchased credit deteriorated loans of $446,000, $646,000, $1.4 million, $605,000, and $331,000 at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively.

Northwest Bancshares, Inc. and Subsidiaries

Allowance for Credit Losses (Unaudited)

(dollars in thousands)



Quarter ended


March 31,
2024


December 31,
2023


September 30,
2023


June 30,
2023


March 31,
2023

Beginning balance

$ 125,243


124,841


124,423


121,257


118,036

ASU 2022-02 Adoption





426

Provision

4,234


3,801


3,983


6,010


4,870

Charge-offs residential mortgage

(162)


(266)


(171)


(545)


(207)

Charge-offs home equity

(412)


(133)


(320)


(235)


(164)

Charge-offs consumer

(4,573)


(3,860)


(3,085)


(2,772)


(2,734)

Charge-offs commercial real estate

(349)


(742)


(484)


(483)


(657)

Charge-offs commercial

(1,163)


(806)


(1,286)


(1,209)


(865)

Recoveries

2,079


2,408


1,781


2,400


2,552

Ending balance

$ 124,897


125,243


124,841


124,423


121,257

Net charge-offs to average loans, annualized

0.16 %


0.12 %


0.13 %


0.10 %


0.08 %

Northwest Bancshares, Inc. and Subsidiaries

Average Balance Sheet (Unaudited)

(dollars in thousands)


The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.



Quarter ended


March 31, 2024


December 31, 2023


September 30, 2023


June 30, 2023


March 31, 2023


Average

balance


Interest


Avg.
yield/
cost (h)


Average

balance


Interest


Avg.

yield/

cost (h)


Average

balance


Interest


Avg.

yield/

cost (h)


Average

balance


Interest


Avg.

yield/

cost (h)


Average

balance


Interest


Avg.

yield/

cost (h)

Assets:






























Interest-earning assets:






























Residential mortgage loans

$ 3,392,524


32,674


3.85 %


$ 3,442,308


32,739


3.80 %


$ 3,476,446


32,596


3.75 %


$ 3,485,517


32,485


3.73 %


$ 3,493,617


32,009


3.66 %

Home equity loans

1,205,273


17,294


5.77 %


1,238,420


17,590


5.64 %


1,264,134


17,435


5.47 %


1,273,298


16,898


5.32 %


1,284,425


16,134


5.09 %

Consumer loans

2,033,620


25,033


4.95 %


2,055,783


24,667


4.76 %


2,092,023


23,521


4.46 %


2,143,804


22,662


4.24 %


2,123,672


20,794


3.97 %

Commercial real estate loans

2,999,224


43,425


5.73 %


2,950,589


43,337


5.75 %


2,911,145


41,611


5.59 %


2,836,443


38,426


5.36 %


2,824,120


37,031


5.24 %

Commercial loans

1,714,667


31,857


7.35 %


1,564,617


28,801


7.20 %


1,447,211


26,239


7.09 %


1,326,598


22,872


6.82 %


1,161,298


18,353


6.32 %

Total loans receivable (a) (b) (d)

11,345,308


150,283


5.33 %


11,251,717


147,134


5.19 %


11,190,959


141,402


5.01 %


11,065,660


133,343


4.83 %


10,887,132


124,321


4.63 %

Mortgage-backed securities (c)

1,717,306


7,944


1.85 %


1,741,687


7,951


1.83 %


1,781,010


8,072


1.81 %


1,859,427


8,326


1.79 %


1,909,676


8,537


1.79 %

Investment securities (c) (d)

333,752


1,430


1.71 %


335,121


1,425


1.70 %


336,125


1,431


1.70 %


374,560


1,715


1.83 %


384,717


1,761


1.83 %

FHLB stock, at cost

32,249


607


7.57 %


35,082


665


7.52 %


37,722


668


7.03 %


45,505


844


7.44 %


39,631


690


7.06 %

Other interest-earning deposits

61,666


832


5.34 %


71,987


970


5.27 %


67,143


915


5.33 %


46,536


594


5.05 %


38,324


423


4.41 %

Total interest-earning assets

13,490,281


161,096


4.80 %


13,435,594


158,145


4.67 %


13,412,959


152,488


4.51 %


13,391,688


144,822


4.34 %


13,259,480


135,732


4.15 %

Noninterest-earning assets (e)

918,331






893,426






966,364






854,229






862,016





Total assets

$ 14,408,612






$ 14,329,020






$ 14,379,323






$ 14,245,917






$ 14,121,496





Liabilities and shareholders' equity:






























Interest-bearing liabilities:






























Savings deposits (g)

$ 2,122,035


5,036


0.95 %


$ 2,102,320


4,045


0.76 %


$ 2,116,759


2,695


0.51 %


$ 2,142,941


1,393


0.26 %


$ 2,198,988


690


0.13 %

Interest-bearing demand deposits (g)

2,538,823


5,402


0.86 %


2,573,634


4,921


0.76 %


2,569,229


4,086


0.63 %


2,469,666


1,648


0.27 %


2,612,883


951


0.15 %

Money market deposit accounts (g)

1,961,332


7,913


1.62 %


1,997,116


7,446


1.48 %


2,112,228


6,772


1.27 %


2,221,713


6,113


1.10 %


2,408,582


4,403


0.74 %

Time deposits (g)

2,697,983


29,335


4.37 %


2,447,335


24,187


3.92 %


2,164,559


18,136


3.32 %


1,765,454


12,663


2.88 %


1,293,609


5,194


1.63 %

Borrowed funds (f)

469,697


5,708


4.89 %


548,089


6,826


4.94 %


643,518


7,937


4.89 %


837,358


10,202


4.89 %


740,218


7,938


4.35 %

Subordinated debt

114,225


1,148


4.02 %


114,134


1,148


4.02 %


114,045


1,148


4.03 %


113,958


1,148


4.03 %


113,870


1,148


4.03 %

Junior subordinated debentures

129,597


2,459


7.51 %


129,532


2,512


7.59 %


129,466


2,456


7.42 %


129,401


2,280


6.97 %


129,335


2,152


6.66 %

Total interest-bearing liabilities

10,033,692


57,001


2.28 %


9,912,160


51,085


2.04 %


9,849,804


43,230


1.74 %


9,680,491


35,447


1.47 %


9,497,485


22,476


0.96 %

Noninterest-bearing demand deposits (g)

2,567,781






2,675,788






2,757,091






2,820,928






2,889,973





Noninterest-bearing liabilities

257,269






234,177






257,141






224,508






235,213





Total liabilities

12,858,742






12,822,125






12,864,036






12,725,927






12,622,671





Shareholders' equity

1,549,870






1,506,895






1,515,287






1,519,990






1,498,825





Total liabilities and shareholders' equity

$ 14,408,612






$ 14,329,020






$ 14,379,323






$ 14,245,917






$ 14,121,496





Net interest income/Interest rate spread



104,095


2.52 %




107,060


2.63 %




109,258


2.77 %




109,375


2.87 %




113,256


3.19 %

Net interest-earning assets/Net interest margin

$ 3,456,589




3.10 %


$ 3,523,434




3.16 %


$ 3,563,155




3.23 %


$ 3,711,197




3.28 %


$ 3,761,995




3.46 %

Ratio of interest-earning assets to interest-bearing liabilities

1.34X






1.36X






1.36X






1.38X






1.40X







(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 1.61%, 1.37%, 1.07%, 0.77%, and 0.40%, respectively, and average cost of Interest-bearing deposits were 2.06%, 1.77%, 1.40%, 1.02%, and 0.54%, respectively.

(h)

Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans — 5.30%, 5.17%, 4.99%, 4.81%, and 4.61%, respectively, Investment securities — 1.54%, 1.52%, 1.52%, 1.61%, and 1.61%, respectively, Interest-earning assets — 4.78%, 4.65%, 4.48%, 4.31%, and 4.13%, respectively. GAAP basis net interest rate spreads were 2.49%, 2.60%, 2.74%, 2.84%, and 3.17%, respectively, and GAAP basis net interest margins were 3.08%, 3.14%, 3.21%, 3.25%, and 3.44%, respectively.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-first-quarter-2024-earnings-and-quarterly-dividend-302122421.html

SOURCE Northwest Bancshares, Inc.



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