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 %

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:

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:

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

—

294.4 %

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

174

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

114,538

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

1,275

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

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

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

—

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

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 %

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

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

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

(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

(2)

1,044

1.51

Due after five years through ten years

996

—

1,003

0.42

Municipal securities:

Due within one year

1,810

—

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

(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

—

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

(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

—

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

(9,775)

88,688

4.21

Variable rate pass-through

310

—

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

(69,130)

489,778

5.03

Total marketable securities held-to-maturity

$ 683,369

(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

174

Other nonperforming assets (1)

—

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

1.35X

(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.

SOURCE Northwest Bancshares, Inc.