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

118^th 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.

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.

SOURCE Northwest Bancshares, Inc.