Northwest Bancshares, Inc. Announces Second Quarter 2024 net income of $5 million, or $0.04 per diluted share

The Company's adjusted net operating income was $35 million, or $0.27 per diluted share⁽¹⁾

Previously announced balance sheet restructure successfully completed

Net interest margin expands 10 basis points to 3.20%

Credit quality remains strong

119th consecutive quarterly dividend of $0.20 per share declared

COLUMBUS, Ohio, July 23, 2024 /PRNewswire/ --

Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended June 30, 2024 of $5 million, or $0.04 per diluted share. This represents a decrease of $28 million compared to the same quarter last year, when net income was $33 million, or $0.26 per diluted share, and a decrease of $24 million compared to the prior quarter, when net income was $29 million, or $0.23 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended June 30, 2024 were 1.24% and 0.13% compared to 8.72% and 0.93% for the same quarter last year and 7.57% and 0.81% from the prior quarter.

Excluding loss on the sale of investments of $28 million, net of tax, and restructuring expense of $1 million, net of tax, the Company's adjusted net operating income was $35 million, or $0.27 per diluted share for the quarter ended June 30, 2024. This represents an increase of $1 million from the same quarter last year, when adjusted net operating income was $34 million, or $0.27 per diluted share, and an increase of $5 million compared to the prior quarter, where adjusted net operating income was $30 million, or $0.23 per diluted share. The adjusted annualized returns on average shareholders' equity and average assets for the quarter ended June 30, 2024 were 9.00% and 0.96% compared to 9.02% and 0.96% for the same quarter last year and 7.75% and 0.83% from the prior quarter.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on August 14, 2024 to shareholders of record as of August 2, 2024. This is the 119^th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of June 30, 2024, this represents an annualized dividend yield of approximately 6.9%.

In the quarter, as previously disclosed, the Company repositioned its security portfolio by selling 15% of its investment securities with proceeds totaling $276 million at a pre-tax loss of $39 million, or $28 million after tax. The proceeds of the sale were immediately used to repay short-term borrowings. In addition, $258 million has already been invested into securities netting a 420 basis point higher yield. The Company currently expects to earn-back the loss over the next three years.

Louis J. Torchio, President and CEO, added, "Our core earnings this quarter reflect our commitment to responsible growth, with particularly strong performance in our commercial division. I'm especially proud of the flawless execution of our previously announced securities restructuring, which has yielded results surpassing our initial projections. This success underscores our team's ability to implement strategic initiatives effectively while maintaining focus on our core business objectives."

"Performance this quarter highlights the significant progress in our commercial transformation strategy. We've seen solid loan growth, particularly in commercial and industrial originations, which aligns with our strategic focus. This targeted growth outpaces less preferred categories in the current market, such as commercial office space or long-term health care. Our success in this area not only validates our strategic direction but also positions us well for sustained, quality growth in the commercial sector."

(1) See reconciliation of non-GAAP financial measures for additional information relating to these items.

Balance Sheet Highlights

Dollars in thousands							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Average loans receivable	$ 11,368,749		11,345,308		11,065,660		0.2 %		2.7 %
Average investments	2,021,347		2,051,058		2,233,987		(1.4) %		(9.5) %
Average deposits	12,086,362		11,887,954		11,420,702		1.7 %		5.8 %
Average borrowed funds	323,191		469,697		837,358		(31.2) %		(61.4) %

• Average loans receivable increased $303 million from the quarter ended June 30, 2023 driven by our commercial banking portfolio, which grew by $631 million in total, including a $444 million increase in our commercial and industrial portfolio as we have continued to build-out our commercial lending verticals. Compared to the first quarter of 2024, average loans receivable increased by $23 million, also driven by growth in the commercial banking portfolio.
• Average investments declined $213 million from the quarter ended June 30, 2023 and $30 million from the quarter ended March 31, 2024. The decline from the prior year was driven by the investment portfolio restructure described above and from lack of reinvestment of cash flow over the past year. The decline in investments from the prior quarter is expected to be temporary and was also driven by the timing of the investment portfolio repositioning activity.
• Average deposits grew $666 million from the quarter ended June 30, 2023, driven by a $1.1 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 first quarter of 2024, average deposits grew $198 million, also driven by an increase in time deposits.
• Average borrowings saw a significant reduction of $514 million compared to the quarter end June 30, 2023 and $147 million compared to the quarter ended March 31, 2024. The decrease in average borrowings is primarily attributable to the strategic pay-down of wholesale borrowings. This decrease was made possible by our repositioning of our securities portfolio as well as a substantial increase in cash reserves resulting from the notable rise in the average balance of deposits noted above.

Income Statement Highlights

Dollars in thousands							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24	2Q23
Interest income	$ 166,854		160,239		143,996		4.1 %		15.9 %
Interest expense	60,013		57,001		35,447		5.3 %		69.3 %
Net interest income	$ 106,841		103,238		108,549		3.5 %		(1.6) %
Net interest margin	3.20 %		3.10 %		3.28 %

Net interest income decreased $2 million and net interest margin decreased to 3.20% for the quarter ended June 30, 2024 from 3.28% for the quarter ended June 30, 2023. This decrease in net interest income resulted primarily from:

• A $23 million increase in interest income that was the result of cash and marketable securities being redeployed into higher yielding loans. Driven by higher market interest rates, the average yield on loans improved to 5.47% for the quarter ended June 30, 2024 from 4.83% for the quarter ended June 30, 2023.
• A $25 million increase in interest expense more than offset the increase in interest income as the result of higher costs of deposits due to the higher interest rate environment and competitive pressure for liquidity. The cost of interest-bearing liabilities increased to 2.40% for the quarter ended June 30, 2024 from 1.47% for the quarter ended June 30, 2023.

Compared to the quarter ended March 31, 2024, net interest income increased $4 million and net interest margin increased to 3.20% for the quarter ended June 30, 2024. This increase in net interest income resulted from the following:

• A $7 million increase in interest income driven by higher interest income on loans receivable as both the average balance and average yield increased compared to the prior quarter. The average yield on loans improved to 5.47% from 5.33% for the quarter ended March 31, 2024.
• Partially offsetting the increase in interest income was a $3 million increase in interest expense due to increases in both the average balance and average yield of interest-earning deposits. The cost of interest-bearing liabilities increased to 2.40% from 2.28% for the quarter ended March 31, 2024.

Dollars in thousands							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Provision for credit losses - loans	$ 2,169		4,234		6,010		(48.8) %		(63.9) %
Provision for credit losses - unfunded commitments	(2,539)		(799)		2,920		217.8 %		(187.0) %
Total provision for credit losses expense	$ (370)		3,435		8,930		(110.8) %		(104.1) %

The total provision for credit losses for the quarter ended June 30, 2024 was a credit of $0.4 million primarily driven by improvements in the economic forecasts coupled with a decline in our reserves for unfunded commitments in the current period. This decline is based on the timing of origination and funding of commercial construction loans and lines of credit.

Additionally, the Company continued to experience low levels of classified loans with a slight increase to $257 million or 2.26% of total loans at June 30, 2024 from $214 million, or 1.90% of total loans, at June 30, 2023 and $229 million, or 1.99% of total loans, at March 31, 2024.

Dollars in thousands							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Noninterest income:
Loss on sale of investments	$ (39,413)		-		(8,306)		NA		374.5 %
Gain on sale of mortgage servicing rights	-		-		8,305		NA		(100.0) %
Gain on sale of SBA loans	1,457		873		832		66.9 %		75.1 %
Service charges and fees	15,527		15,523		14,833		- %		4.7 %
Trust and other financial services income	7,566		7,127		6,866		6.2 %		10.2 %
Gain on real estate owned, net	487		57		785		754.4 %		(38.0) %
Income from bank-owned life insurance	1,371		1,502		1,304		(8.7) %		5.1 %
Mortgage banking income	901		452		1,028		99.3 %		(12.4) %
Other operating income	3,255		2,429		4,150		34.0 %		(21.6) %
Total noninterest (loss)/income	(8,849)		27,963		29,797		(131.6) %		(129.7) %

Noninterest income for the quarter ended June 30, 2024 showed a loss of $9 million inclusive of a $39 million loss on the sale of investment securities, excluding the loss on sale of securities net interest income grew by $1 million, or 3%, from the quarter ended June 30, 2023 and $3 million, or 9% from the quarter ended March 31, 2024. In addition, in the prior year period we realized a gain on sale of mortgage servicing rights of $8 million and an offsetting loss on the sale of investments of $8 million.

Dollars in thousands							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Noninterest expense:
Personnel expense	$ 53,531		51,540		47,650		3.9 %		12.3 %
Non personnel expense	38,889		38,484		38,208		1.1 %		1.8 %
Total noninterest expense	$ 92,420		90,024		85,858		2.7 %		7.6 %

Noninterest expense increased from the quarter ended June 30, 2023 due to a $6 million increase in personnel expenses driven by the build-out of the commercial business and related credit, risk management and internal audit support functions over the past year.

Compared to the quarter ended March 31, 2024, noninterest expense increased due to a $2 million increase in personnel expense driven by an annual salary merit increase, additional contracted employees utilized during the quarter and an increase in incentive compensation expenses.

Dollars in thousands							Change 2Q24 vs.
	2Q24		1Q24		2Q23		1Q24		2Q23
Income before income taxes	$ 5,942		37,742		43,558		(84.3) %		(86.4) %
Income tax expense	1,195		8,579		10,514		(86.1) %		(88.6) %
Net income	$ 4,747		29,163		33,044		(83.7) %		(85.6) %

The provision for income taxes decreased by $9 million from the quarter ended June 30, 2023 and $7 million from the quarter ended March 31, 2024 primarily due to lower income before income taxes.

Net income declined compared to both the quarter ended June 30, 2023 and the quarter ended March 31, 2024 due to loss on sale of investments from the current period balance sheet restructuring as well as the additional 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 June 30, 2024, Northwest operated 131 full-service financial centers 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)
	June 30, 2024		December 31, 2023		June 30, 2023
Assets
Cash and cash equivalents	$ 228,433		122,260		127,627
Marketable securities available-for-sale (amortized cost of $1,202,354, $1,240,003 and $1,287,101, respectively)	1,029,191		1,043,359		1,073,952
Marketable securities held-to-maturity (fair value of $663,292, $699,506 and $718,676, respectively)	784,208		814,839		847,845
Total cash and cash equivalents and marketable securities	2,041,832		1,980,458		2,049,424
Loans held-for-sale	9,445		8,768		16,077
Residential mortgage loans	3,315,303		3,419,417		3,479,080
Home equity loans	1,180,486		1,227,858		1,276,062
Consumer loans	2,080,058		2,126,027		2,201,062
Commercial real estate loans	3,026,958		2,974,010		2,895,224
Commercial loans	1,742,114		1,658,729		1,403,726
Total loans receivable	11,354,364		11,414,809		11,271,231
Allowance for credit losses	(125,070)		(125,243)		(124,423)
Loans receivable, net	11,229,294		11,289,566		11,146,808
FHLB stock, at cost	20,842		30,146		44,613
Accrued interest receivable	48,739		47,353		37,281
Real estate owned, net	74		104		371
Premises and equipment, net	128,208		138,838		139,915
Bank-owned life insurance	253,890		251,895		257,614
Goodwill	380,997		380,997		380,997
Other intangible assets, net	3,954		5,290		6,809
Other assets	277,723		294,458		227,659
Total assets	$ 14,385,553		14,419,105		14,291,491
Liabilities and shareholders' equity
Liabilities
Noninterest-bearing demand deposits	$ 2,581,699		2,669,023		2,820,563
Interest-bearing demand deposits	2,565,750		2,634,546		2,577,653
Money market deposit accounts	1,964,841		1,968,218		2,154,253
Savings deposits	2,148,727		2,105,234		2,120,215
Time deposits	2,826,362		2,602,881		1,989,711
Total deposits	12,087,379		11,979,902		11,662,395
Borrowed funds	242,363		398,895		632,313
Subordinated debt	114,364		114,189		114,015
Junior subordinated debentures	129,703		129,574		129,444
Advances by borrowers for taxes and insurance	52,271		45,253		57,143
Accrued interest payable	21,423		13,669		4,936
Other liabilities	181,452		186,306		179,744
Total liabilities	12,828,955		12,867,788		12,779,990
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, 127,307,997, 127,110,453 and 127,088,963 shares issued and outstanding, respectively	1,273		1,271		1,271
Additional paid-in capital	1,027,703		1,024,852		1,022,189
Retained earnings	657,706		674,686		657,292
Accumulated other comprehensive loss	(130,084)		(149,492)		(169,251)
Total shareholders' equity	1,556,598		1,551,317		1,511,501
Total liabilities and shareholders' equity	$ 14,385,553		14,419,105		14,291,491
Equity to assets	10.82 %		10.76 %		10.58 %
Tangible common equity to assets*	8.37 %		8.30 %		8.08 %
Book value per share	$ 12.23		12.20		11.89
Tangible book value per share*	$ 9.20		9.17		8.84
Closing market price per share	$ 11.55		12.48		10.60
Full time equivalent employees	1,991		2,098		2,025
Number of banking offices	139		142		142

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

Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)
	Quarter ended
	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Interest income:
Loans receivable	$ 153,954		149,571		146,523		140,667		132,724
Mortgage-backed securities	9,426		7,944		7,951		8,072		8,326
Taxable investment securities	728		794		786		786		841
Tax-free investment securities	457		491		492		491		667
FHLB stock dividends	498		607		666		668		844
Interest-earning deposits	1,791		832		970		914		594
Total interest income	166,854		160,239		157,388		151,598		143,996
Interest expense:
Deposits	52,754		47,686		40,600		31,688		21,817
Borrowed funds	7,259		9,315		10,486		11,542		13,630
Total interest expense	60,013		57,001		51,086		43,230		35,447
Net interest income	106,841		103,238		106,302		108,368		108,549
Provision for credit losses - loans	2,169		4,234		3,801		3,983		6,010
Provision for credit losses - unfunded commitments	(2,539)		(799)		4,145		(2,981)		2,920
Net interest income after provision for credit losses	107,211		99,803		98,356		107,366		99,619
Noninterest income:
Loss on sale of investments	(39,413)		-		(1)		-		(8,306)
Gain on sale of mortgage servicing rights	-		-		-		-		8,305
Gain on sale of SBA loans	1,457		873		388		301		832
Gain on sale of loans	-		-		726		-		-
Service charges and fees	15,527		15,523		15,922		15,270		14,833
Trust and other financial services income	7,566		7,127		6,884		7,085		6,866
Gain on real estate owned, net	487		57		1,084		29		785
Income from bank-owned life insurance	1,371		1,502		1,454		4,561		1,304
Mortgage banking income	901		452		247		632		1,028
Other operating income	3,255		2,429		2,465		3,010		4,150
Total noninterest (loss)/income	(8,849)		27,963		29,169		30,888		29,797
Noninterest expense:
Compensation and employee benefits	53,531		51,540		50,194		51,243		47,650
Premises and occupancy costs	7,464		7,627		7,049		7,052		7,579
Office operations	3,819		2,767		3,747		3,398		2,800
Collections expense	406		336		328		551		429
Processing expenses	14,695		14,725		15,017		14,672		14,648
Marketing expenses	2,410		2,149		1,317		2,379		2,856
Federal deposit insurance premiums	2,865		3,023		2,643		2,341		2,064
Professional services	3,728		4,065		6,255		3,002		3,804
Amortization of intangible assets	635		701		724		795		842
Real estate owned expense	57		66		51		141		83
Merger, asset disposition and restructuring expense	1,915		955		2,354		-		1,593
Other expenses	895		2,070		997		1,996		1,510
Total noninterest expense	92,420		90,024		90,676		87,570		85,858
Income before income taxes	5,942		37,742		36,849		50,684		43,558
Income tax expense	1,195		8,579		7,835		11,464		10,514
Net income	$ 4,747		29,163		29,014		39,220		33,044
Basic earnings per share	$ 0.04		0.23		0.23		0.31		0.26
Diluted earnings per share	$ 0.04		0.23		0.23		0.31		0.26
Annualized return on average equity	1.24 %		7.57 %		7.64 %		10.27 %		8.72 %
Annualized return on average assets	0.13 %		0.81 %		0.80 %		1.08 %		0.93 %
Annualized return on average tangible common equity *	1.65 %		10.08 %		10.28 %		13.80 %		11.71 %
Efficiency ratio	94.31 %		68.62 %		66.93 %		62.88 %		62.06 %
Efficiency ratio, excluding certain items **	65.41 %		67.35 %		64.66 %		62.31 %		60.30 %
Annualized noninterest expense to average assets	2.57 %		2.51 %		2.51 %		2.42 %		2.42 %
Annualized noninterest expense to average assets, excluding certain items**	2.50 %		2.47 %		2.43 %		2.39 %		2.35 %

*	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
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)
	Six months ended June 30,
	2024		2023
Interest income:
Loans receivable	$ 303,525		256,469
Mortgage-backed securities	17,370		16,863
Taxable investment securities	1,522		1,686
Tax-free investment securities	948		1,367
FHLB stock dividends	1,105		1,534
Interest-earning deposits	2,623		1,017
Total interest income	327,093		278,936
Interest expense:
Deposits	100,440		33,055
Borrowed funds	16,574		24,868
Total interest expense	117,014		57,923
Net interest income	210,079		221,013
Provision for credit losses - loans	6,403		10,880
Provision for credit losses - unfunded commitments	(3,338)		3,046
Net interest income after provision for credit losses	207,014		207,087
Noninterest income:
Loss on sale of investments	(39,413)		(8,306)
Gain on sale of mortgage servicing rights	-		8,305
Gain on sale of SBA loans	2,330		1,111
Service charges and fees	31,050		28,022
Trust and other financial services income	14,693		13,315
Gain on real estate owned, net	544		893
Income from bank-owned life insurance	2,873		2,573
Mortgage banking income	1,353		1,552
Other operating income	5,684		6,301
Total noninterest income	19,114		53,766
Noninterest expense:
Compensation and employee benefits	105,071		94,254
Premises and occupancy costs	15,091		15,050
Office operations	6,586		5,810
Collections expense	742		816
Processing expenses	29,420		28,998
Marketing expenses	4,559		5,748
Federal deposit insurance premiums	5,888		4,287
Professional services	7,793		8,562
Amortization of intangible assets	1,336		1,751
Real estate owned expense	123		264
Merger, asset disposition and restructuring expense	2,870		4,395
Other expenses	2,965		3,373
Total noninterest expense	182,444		173,308
Income before income taxes	43,684		87,545
Income tax expense	9,774		20,822
Net income	$ 33,910		66,723
Basic earnings per share	$ 0.27		0.53
Diluted earnings per share	$ 0.27		0.52
Annualized return on average equity	4.41 %		8.91 %
Annualized return on average assets	0.47 %		0.95 %
Annualized return on tangible common equity *	5.88 %		12.01 %
Efficiency ratio	79.60 %		63.07 %
Efficiency ratio, excluding certain items **	66.36 %		60.83 %
Annualized noninterest expense to average assets	2.54 %		2.46 %
Annualized noninterest expense to average assets, excluding certain items **	2.48 %		2.38 %

*	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						Six months ended June 30,
	June 30, 2024		March 31, 2024		June 30, 2023		2024		2023
Reconciliation of net income to adjusted net operating income:
Net income (GAAP)	$ 4,747		29,163		33,044		33,910		66,723
Non-GAAP adjustments
Add: merger, asset disposition and restructuring expense	1,915		955		1,593		2,870		4,395
Add: loss on the sale of investments	39,413		-		8,306		39,413		8,306
Less: gain on sale of mortgage servicing rights	-		-		(8,305)		-		(8,305)
Less: tax benefit of non-GAAP adjustments	(11,572)		(267)		(446)		(11,839)		(1,231)
Adjusted net operating income (non-GAAP)	$ 34,503		29,851		34,192		64,354		69,888
Diluted earnings per share (GAAP)	$ 0.04		0.23		0.26		0.27		0.52
Diluted adjusted operating earnings per share (non-GAAP)	$ 0.27		0.23		0.27		0.51		0.55
Average equity	$ 1,541,434		1,549,870		1,519,990		1,545,651		1,509,466
Average assets	14,458,592		14,408,612		14,245,917		14,433,602		14,184,050
Annualized return on average equity (GAAP)	1.24 %		7.57 %		8.72 %		4.41 %		8.91 %
Annualized return on average assets (GAAP)	0.13 %		0.81 %		0.93 %		0.47 %		0.95 %
Annualized return on average equity, excluding merger, asset disposition and restructuring expense, loss on the sale of investments and gain on sale of mortgage servicing rights, net of tax (non-GAAP)	9.00 %		7.75 %		9.02 %		8.37 %		9.34 %
Annualized return on average assets, excluding merger, asset disposition and restructuring expense, loss on sale of investments, and gain on sale of mortgage servicing rights, net of tax (non-GAAP)	0.96 %		0.83 %		0.96 %		0.90 %		0.99 %

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.
	June 30, 2024		December 31, 2023		June 30, 2023
Tangible common equity to assets
Total shareholders' equity	$ 1,556,598		1,551,317		1,511,501
Less: goodwill and intangible assets	(384,951)		(386,287)		(387,806)
Tangible common equity	$ 1,171,647		1,165,030		1,123,695
Total assets	$ 14,385,553		14,419,105		14,291,491
Less: goodwill and intangible assets	(384,951)		(386,287)		(387,806)
Tangible assets	$ 14,000,602		14,032,818		13,903,685
Tangible common equity to tangible assets	8.37 %		8.30 %		8.08 %
Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments
Tangible common equity	$ 1,171,647		1,165,030		1,123,695
Less: unrealized losses on held to maturity investments	(120,916)		(115,334)		(129,169)
Add: deferred taxes on unrealized losses on held to maturity investments	33,856		32,294		36,167
Tangible common equity, including unrealized losses on held-to-maturity investments	$ 1,084,587		1,081,990		1,030,693
Tangible assets	$ 14,000,602		14,032,818		13,903,685
Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments	7.75 %		7.71 %		7.41 %
Tangible book value per share
Tangible common equity	$ 1,171,647		1,165,030		1,123,695
Common shares outstanding	127,307,997		127,110,453		127,088,963
Tangible book value per share	9.20		9.17		8.84

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										Six months ended June 30,
	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		2024		2023
Annualized return on average tangible common equity
Net income	$ 4,747		29,163		29,014		39,220		33,044		33,910		66,723
Average shareholders' equity	1,541,434		1,549,870		1,506,895		1,515,287		1,519,990		1,545,651		1,509,466
Less: average goodwill and intangible assets	(385,364)		(386,038)		(386,761)		(387,523)		(388,354)		(385,701)		(388,793)
Average tangible common equity	$ 1,156,070		1,163,832		1,120,134		1,127,764		1,131,636		1,159,950		1,120,673
Annualized return on average tangible common equity	1.65 %		10.08 %		10.28 %		13.80 %		11.71 %		5.88 %		12.01 %
Efficiency ratio, excluding loss on the sale of investments, gain on the sale of mortgage servicing rights, amortization and merger, asset disposition and restructuring expenses
Non-interest expense	$ 92,420		90,024		90,676		87,570		85,858		182,444		173,308
Less: amortization expense	(635)		(701)		(724)		(795)		(842)		(1,336)		(1,751)
Less: merger, asset disposition and restructuring expenses	(1,915)		(955)		(2,354)		-		(1,593)		(2,870)		(4,395)
Non-interest expense, excluding amortization and merger, assets disposition and restructuring expenses	$ 89,870		88,368		87,598		86,775		83,423		178,238		167,162
Net interest income	$ 106,841		103,238		106,302		108,368		108,549		210,079		221,013
Non-interest income	(8,849)		27,963		29,169		30,888		29,797		19,114		53,766
Add: loss on the sale of investments	39,413		-		1		-		8,306		39,413		8,306
Less: gain on sale of mortgage servicing rights	-		-	-	-	-	-		(8,305)		-		(8,305)
Net interest income plus non-interest income, excluding loss on sale of investments and gain on sale of mortgage servicing rights	$ 137,405		131,201		135,472		139,256		138,347		268,606		274,780
Efficiency ratio, excluding loss on sale of investments, gain on sale of mortgage servicing rights, amortization and merger, asset disposition and restructuring expenses	65.41 %		67.35 %		64.66 %		62.31 %		60.30 %		66.36 %		60.83 %
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	$ 89,870		88,368		87,598		86,775		83,423		178,238		167,162
Average assets	14,458,592		14,408,612		14,329,020		14,379,323		14,245,917		14,433,602		14,184,050
Annualized non-interest expense to average assets, excluding amortization and merger, asset disposition and restructuring expense	2.50 %		2.47 %		2.43 %		2.39 %		2.35 %		2.48 %		2.38 %

*

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 June 30, 2024
	Balance		Percent of total deposits		Number of relationships
Uninsured deposits per the Call Report (1)	$ 3,019,897		24.98 %		5,062
Less intercompany deposit accounts	1,163,566		9.62 %		12
Less collateralized deposit accounts	468,815		3.88 %		243
Uninsured deposits excluding intercompany and collateralized accounts	$ 1,387,516		11.48 %		4,807

(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 $19.4 million, or 0.16% of total deposits, as of June 30, 2024. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $102 million, or 0.84% of total deposits, as of June 30, 2024. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $289,000 as of June 30, 2024.
The following table provides additional details for the Company's deposit portfolio:
	As of June 30, 2024
	Balance		Percent of total deposits		Number of accounts
Personal noninterest bearing demand deposits	$ 1,350,520		11.2 %		286,513
Business noninterest bearing demand deposits	1,231,179		10.2 %		43,499
Personal interest-bearing demand deposits	1,396,825		11.5 %		57,185
Business interest-bearing demand deposits	1,168,925		9.7 %		7,786
Personal money market deposits	1,390,162		11.5 %		24,906
Business money market deposits	574,679		4.7 %		2,777
Savings deposits	2,148,727		17.8 %		187,406
Time deposits	2,826,362		23.4 %		81,844
Total deposits	$ 12,087,379		100.0 %		691,916

Our average deposit account balance as of June 30, 2024 was $17,000. The Company's insured cash sweep deposit balance was $394 million as of June 30, 2024.
The following table provides additional details regarding the Company's deposit portfolio over time:
	12/31/2022		3/31/2023		6/30/2023		9/30/2023		12/31/2023		3/31/2024		6/30/2024
Personal noninterest bearing demand deposits	$ 1,412,227		1,428,232		1,397,167		1,375,144		1,357,875		1,369,294		1,350,520
Business noninterest bearing demand deposits	1,581,016		1,467,860		1,423,396		1,399,147		1,311,148		1,249,085		1,231,179
Personal interest-bearing demand deposits	1,718,806		1,627,546		1,535,254		1,477,617		1,464,058		1,427,140		1,396,825
Business interest-bearing demand deposits	499,059		466,105		624,252		689,914		812,433		805,069		815,358
Municipal demand deposits	468,566		447,852		418,147		430,549		358,055		325,657		353,567
Personal money market deposits	1,832,583		1,626,614		1,511,652		1,463,689		1,435,939		1,393,532		1,390,162
Business money market deposits	624,986		701,436		642,601		579,124		532,279		559,005		574,679
Savings deposits	2,275,020		2,194,743		2,120,215		2,116,360		2,105,234		2,156,048		2,148,727
Time deposits	1,052,285		1,576,791		1,989,711		2,258,338		2,602,881		2,786,814		2,826,362
Total deposits	$ 11,464,548		11,537,179		11,662,395		11,789,882		11,979,902		12,071,644		12,087,379

Northwest Bancshares, Inc. and Subsidiaries
Regulatory Capital Requirements (Unaudited)
(dollars in thousands)
	At June 30, 2024
	Actual				Minimum capital requirements (1)				Well capitalized requirements
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk weighted assets)
Northwest Bancshares, Inc.	$ 1,784,604		16.674 %		$ 1,123,831		10.500 %		$ 1,070,315		10.000 %
Northwest Bank	1,537,783		14.380 %		1,122,827		10.500 %		1,069,359		10.000 %
Tier 1 capital (to risk weighted assets)
Northwest Bancshares, Inc.	1,536,552		14.356 %		909,768		8.500 %		856,252		8.000 %
Northwest Bank	1,404,095		13.130 %		908,955		8.500 %		855,487		8.000 %
Common equity tier 1 capital (to risk weighted assets)
Northwest Bancshares, Inc.	1,410,837		13.182 %		749,220		7.000 %		695,705		6.500 %
Northwest Bank	1,404,095		13.130 %		748,551		7.000 %		695,083		6.500 %
Tier 1 capital (leverage) (to average assets)
Northwest Bancshares, Inc.	1,536,552		10.654 %		576,913		4.000 %		721,142		5.000 %
Northwest Bank	1,404,095		9.742 %		576,521		4.000 %		720,651		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)
		June 30, 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 ten years		$ 47,263		-		(10,292)		36,971		6.08
Debt issued by government sponsored enterprises:
Due after one year through five years		185		-		(5)		180		1.19
Municipal securities:
Due after one year through five years		880		8		(3)		885		1.83
Due after five years through ten years		9,157		5		(1,565)		7,597		7.89
Due after ten years		58,872		13		(8,626)		50,259		10.17
Corporate debt issues:
Due after five years through ten years		14,373		20		(886)		13,507		4.79
Due after ten years		3,250		-		-		3,250		10.04
Mortgage-backed agency securities:
Fixed rate pass-through		228,855		83		(16,874)		212,064		7.64
Variable rate pass-through		4,093		24		(13)		4,104		3.59
Fixed rate agency CMOs		789,673		293		(135,258)		654,708		4.72
Variable rate agency CMOs		45,753		38		(125)		45,666		7.18
Total mortgage-backed agency securities		1,068,374		438		(152,270)		916,542		5.52
Total marketable securities available-for-sale		$ 1,202,354		484		(173,647)		1,029,191		5.78
Marketable securities held-to-maturity
Government sponsored
Due after one year through five years		$ 89,472		-		(10,845)		78,627		3.66
Due after five years through ten years		34,988		-		(5,645)		29,343		5.08
Mortgage-backed agency securities:
Fixed rate pass-through		140,245		-		(21,704)		118,541		4.84
Variable rate pass-through		414		-		(4)		410		4.23
Fixed rate agency CMOs		518,560		-		(82,714)		435,846		5.85
Variable rate agency CMOs		529		-		(4)		525		5.09
Total mortgage-backed agency securities		659,748		-		(104,426)		555,322		5.63
Total marketable securities held-to-maturity		$ 784,208		-		(120,916)		663,292		5.38

Northwest Bancshares, Inc. and Subsidiaries
Borrowed Funds (Unaudited)
(dollars in thousands)
	June 30, 2024
	Amount		Average rate
Term notes payable to the FHLB of Pittsburgh, due within one year	$ 175,000		5.65 %
Collateralized borrowings, due within one year	26,213		1.83 %
Collateral received, due within one year	41,150		5.17 %
Subordinated debentures, net of issuance costs	114,364		4.28 %
Junior subordinated debentures	129,703		7.61 %
Total borrowed funds *	$ 486,430		5.61 %

*	As of June 30, 2024, the Company had $3.4 billion of additional borrowing capacity available with the FHLB of Pittsburgh, including a $250 million overnight line of credit, which has no balance as of June 30, 2024, as well as $404 million of borrowing capacity available with the Federal Reserve Bank and $105 million with two correspondent banks.

Northwest Bancshares, Inc. and Subsidiaries
Analysis of Loan Portfolio by Loan Sector (Unaudited)
Commercial real estate loans outstanding
The following table provides the various loan sectors in our commercial real estate portfolio at June 30, 2024:
Property type		Percent of portfolio
5 or more unit dwelling		16.8 %
Nursing home		12.5
Retail building		11.7
Commercial office building - non-owner occupied		8.9
Manufacturing & industrial building		4.8
Residential acquisition & development - 1-4 family, townhouses and apartments		4.3
Multi-use building - commercial, retail and residential		4.0
Warehouse/storage building		3.9
Commercial office building - owner occupied		3.9
Multi-use building - office and warehouse		3.0
Other medical facility		3.0
Single family dwelling		2.6
Student housing		2.1
Hotel/motel		2.1
Agricultural real estate		2.0
All other		14.4
Total		100.0 %

The following table describes the collateral of our commercial real estate portfolio by state at June 30, 2024:
State		Percent of portfolio
New York		32.7 %
Pennsylvania		29.4
Ohio		20.7
Indiana		9.0
All other		8.2
Total		100.0 %

Northwest Bancshares, Inc. and Subsidiaries
Asset Quality (Unaudited)
(dollars in thousands)
	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Nonaccrual loans current:
Residential mortgage loans	$ 1,563		1,351		959		1,951		1,559
Home equity loans	1,088		974		871		947		1,089
Consumer loans	1,268		1,295		1,051		1,049		1,009
Commercial real estate loans	66,181		66,895		64,603		44,639		48,468
Commercial loans	788		934		1,182		1,369		995
Total nonaccrual loans current	$ 70,888		71,449		68,666		49,955		53,120
Nonaccrual loans delinquent 30 days to 59 days:
Residential mortgage loans	$ 100		1,454		933		48		49
Home equity loans	260		125		174		92		37
Consumer loans	305		294		225		274		309
Commercial real estate loans	699		574		51		1,913		1,697
Commercial loans	183		161		139		90		855
Total nonaccrual loans delinquent 30 days to 59 days	$ 1,547		2,608		1,522		2,417		2,947
Nonaccrual loans delinquent 60 days to 89 days:
Residential mortgage loans	$ 578		-		511		66		185
Home equity loans	234		488		347		319		363
Consumer loans	603		381		557		312		360
Commercial real estate loans	2,243		52		831		212		210
Commercial loans	8,088		201		56		291		245
Total nonaccrual loans delinquent 60 days to 89 days	$ 11,746		1,122		2,302		1,200		1,363
Nonaccrual loans delinquent 90 days or more:
Residential mortgage loans	$ 4,162		4,304		6,324		7,695		6,290
Home equity loans	2,473		2,822		3,100		2,073		1,965
Consumer loans	2,433		2,659		3,212		2,463		2,033
Commercial real estate loans	5,849		6,931		6,488		8,416		8,575
Commercial loans	3,061		3,165		2,770		2,435		2,296
Total nonaccrual loans delinquent 90 days or more	$ 17,978		19,881		21,894		23,082		21,159
Total nonaccrual loans	$ 102,159		95,060		94,384		76,654		78,589
Total nonaccrual loans	$ 102,159		95,060		94,384		76,654		78,589
Loans 90 days past due and still accruing	2,511		2,452		2,698		728		532
Nonperforming loans	104,670		97,512		97,082		77,382		79,121
Real estate owned, net	74		50		104		363		371
Nonperforming assets	$ 104,744		97,562		97,186		77,745		79,492
Nonperforming loans to total loans	0.92 %		0.85 %		0.85 %		0.68 %		0.70 %
Nonperforming assets to total assets	0.73 %		0.67 %		0.67 %		0.54 %		0.56 %
Allowance for credit losses to total loans	1.10 %		1.09 %		1.10 %		1.10 %		1.10 %
Allowance for credit losses to nonperforming loans	119.49 %		128.08 %		129.01 %		161.33 %		157.26 %

Northwest Bancshares, Inc. and Subsidiaries
Loans by Credit Quality Indicators (Unaudited)
(dollars in thousands)
At June 30, 2024		Pass		Special mention *		Substandard **		Doubtful		Loss		Loans receivable
Personal Banking:
Residential mortgage loans		$ 3,312,368		-		11,700		-		-		3,324,068
Home equity loans		1,176,187		-		4,299		-		-		1,180,486
Consumer loans		2,074,869		-		5,189		-		-		2,080,058
Total Personal Banking		6,563,424		-		21,188		-		-		6,584,612
Commercial Banking:
Commercial real estate loans		2,682,766		130,879		213,993		-		-		3,027,638
Commercial loans		1,673,052		47,400		21,662		-		-		1,742,114
Total Commercial Banking		4,355,818		178,279		235,655		-		-		4,769,752
Total loans		$ 10,919,242		178,279		256,843		-		-		11,354,364
At March 31, 2024
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

*	Includes $2.5 million, $2.4 million, $7.8 million, $6.9 million, and $4.9 million of acquired loans at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.
**	Includes $24.3 million, $27.2 million, $20.3 million, $28.9 million, and $31.2 million of acquired loans at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.

Northwest Bancshares, Inc. and Subsidiaries
Loan Delinquency (Unaudited)
(dollars in thousands)
	June 30, 2024				*		March 31, 2024				*		December 31, 2023				*		September 30, 2023				*		June 30, 2023				*
(Number of loans and dollar amount of loans)
Loans delinquent 30 days to 59 days:
Residential mortgage loans	12		$ 616		- %		351		$ 38,502		1.1 %		307		$ 30,041		0.9 %		6		$ 573		- %		14		$ 627		- %
Home equity loans	104		3,771		0.3 %		113		4,608		0.4 %		121		5,761		0.5 %		112		4,707		0.4 %		92		3,395		0.3 %
Consumer loans	742		10,372		0.5 %		737		9,911		0.5 %		896		11,211		0.5 %		733		9,874		0.5 %		602		7,955		0.4 %
Commercial real estate loans	21		4,310		0.1 %		25		6,396		0.2 %		23		3,204		0.1 %		22		3,411		0.1 %		13		2,710		0.1 %
Commercial loans	59		4,366		0.3 %		62		3,091		0.2 %		59		4,196		0.3 %		52		2,847		0.2 %		38		15,658		1.1 %
Total loans delinquent 30 days to 59 days	938		$ 23,435		0.2 %		1,288		$ 62,508		0.5 %		1,406		$ 54,413		0.5 %		925		$ 21,412		0.2 %		759		$ 30,345		0.3 %
Loans delinquent 60 days to 89 days:
Residential mortgage loans	70		$ 8,223		0.2 %		3		$ 70		- %		69		$ 7,796		0.2 %		56		$ 5,395		0.2 %		52		$ 3,521		0.1 %
Home equity loans	35		1,065		0.1 %		26		761		0.1 %		37		982		0.1 %		40		1,341		0.1 %		31		1,614		0.1 %
Consumer loans	295		3,198		0.2 %		231		2,545		0.1 %		322		3,754		0.2 %		236		2,707		0.1 %		250		2,584		0.1 %
Commercial real estate loans	9		3,155		0.1 %		5		807		- %		9		1,031		- %		13		1,588		0.1 %		12		1,288		- %
Commercial loans	22		8,732		0.5 %		27		1,284		0.1 %		16		703		- %		15		981		0.1 %		23		11,092		0.8 %
Total loans delinquent 60 days to 89 days	431		$ 24,373		0.2 %		292		$ 5,467		- %		453		$ 14,266		0.1 %		360		$ 12,012		0.1 %		368		$ 20,099		0.2 %
Loans delinquent 90 days or more: **
Residential mortgage loans	53		$ 5,553		0.2 %		50		$ 5,813		0.2 %		70		$ 7,995		0.2 %		79		$ 7,695		0.2 %		63		$ 6,290		0.2 %
Home equity loans	51		2,506		0.2 %		71		2,823		0.2 %		81		3,126		0.3 %		73		2,206		0.2 %		68		1,965		0.2 %
Consumer loans	358		3,012		0.1 %		398		3,345		0.2 %		440		3,978		0.2 %		357		3,020		0.1 %		314		2,447		0.1 %
Commercial real estate loans	19		6,034		0.2 %		22		6,931		0.2 %		27		6,712		0.2 %		27		8,416		0.3 %		20		8,575		0.3 %
Commercial loans	72		3,385		0.2 %		62		3,421		0.2 %		53		2,780		0.2 %		39		2,472		0.2 %		38		2,414		0.2 %
Total loans delinquent 90 days or more	553		$ 20,490		0.2 %		603		$ 22,333		0.2 %		671		$ 24,591		0.2 %		575		$ 23,809		0.2 %		503		$ 21,691		0.2 %
Total loans delinquent	1,922		$ 68,298		0.6 %		2,183		$ 90,308		0.8 %		2,530		$ 93,270		0.8 %		1,860		$ 57,233		0.5 %		1,630		$ 72,135		0.6 %

*	Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
**	Includes purchased credit deteriorated loans of $82,000, $446,000, $646,000, $1.4 million, and $605,000 at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.

Northwest Bancshares, Inc. and Subsidiaries
Allowance for Credit Losses (Unaudited)
(dollars in thousands)
	Quarter ended
	June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023
Beginning balance	$ 124,897		125,243		124,841		124,423		121,257
Provision	2,169		4,234		3,801		3,983		6,010
Charge-offs residential mortgage	(252)		(162)		(266)		(171)		(545)
Charge-offs home equity	(237)		(412)		(133)		(320)		(235)
Charge-offs consumer	(2,561)		(4,573)		(3,860)		(3,085)		(2,772)
Charge-offs commercial real estate	(500)		(349)		(742)		(484)		(483)
Charge-offs commercial	(1,319)		(1,163)		(806)		(1,286)		(1,209)
Recoveries	2,873		2,079		2,408		1,781		2,400
Ending balance	$ 125,070		124,897		125,243		124,841		124,423
Net charge-offs to average loans, annualized	0.07 %		0.16 %		0.12 %		0.13 %		0.10 %

	Six months ended June 30,
	2024		2023
Beginning balance	$ 125,243		118,036
ASU 2022-02 Adoption	-		426
Provision	6,403		10,880
Charge-offs residential mortgage	(414)		(752)
Charge-offs home equity	(649)		(399)
Charge-offs consumer	(7,134)		(5,506)
Charge-offs commercial real estate	(849)		(1,140)
Charge-offs commercial	(2,482)		(2,074)
Recoveries	4,952		4,952
Ending balance	$ 125,070		124,423
Net charge-offs to average loans, annualized	0.12 %		0.09 %

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
	June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						June 30, 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	$ 3,342,749		32,182		3.85 %		$ 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 %
Home equity loans	1,183,497		17,303		5.88 %		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 %
Consumer loans	2,048,396		26,334		5.17 %		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 %
Commercial real estate loans	3,023,762		45,658		5.97 %		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 %
Commercial loans	1,770,345		33,229		7.43 %		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 %
Total loans receivable (a) (b) (d)	11,368,749		154,706		5.47 %		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 %
Mortgage-backed securities (c)	1,734,085		9,426		2.17 %		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 %
Investment securities (c) (d)	287,262		1,316		1.83 %		333,752		1,430		1.71 %		335,121		1,425		1.70 %		336,125		1,431		1.70 %		374,560		1,715		1.83 %
FHLB stock, at cost	25,544		498		7.84 %		32,249		607		7.57 %		35,082		665		7.52 %		37,722		668		7.03 %		45,505		844		7.44 %
Other interest-earning deposits	135,520		1,791		5.23 %		61,666		832		5.34 %		71,987		970		5.27 %		67,143		915		5.33 %		46,536		594		5.05 %
Total interest-earning assets	13,551,160		167,737		4.98 %		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 %
Noninterest-earning assets (e)	907,432						918,331						893,426						966,364						854,229
Total assets	$ 14,458,592						$ 14,408,612						$ 14,329,020						$ 14,379,323						$ 14,245,917
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings deposits (g)	$ 2,144,278		5,957		1.12 %		$ 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 %
Interest-bearing demand deposits (g)	2,555,863		6,646		1.05 %		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 %
Money market deposit accounts (g)	1,957,990		8,601		1.77 %		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 %
Time deposits (g)	2,832,720		31,550		4.48 %		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 %
Borrowed funds (f)	323,191		3,662		4.56 %		469,697		5,708		4.89 %		548,089		6,826		4.94 %		643,518		7,937		4.89 %		837,358		10,202		4.89 %
Subordinated debt	114,308		1,148		4.02 %		114,225		1,148		4.02 %		114,134		1,148		4.02 %		114,045		1,148		4.03 %		113,958		1,148		4.03 %
Junior subordinated debentures	129,663		2,449		7.47 %		129,597		2,459		7.51 %		129,532		2,512		7.59 %		129,466		2,456		7.42 %		129,401		2,280		6.97 %
Total interest-bearing liabilities	10,058,013		60,013		2.40 %		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 %
Noninterest-bearing demand deposits (g)	2,595,511						2,567,781						2,675,788						2,757,091						2,820,928
Noninterest-bearing liabilities	263,634						257,269						234,177						257,141						224,508
Total liabilities	12,917,158						12,858,742						12,822,125						12,864,036						12,725,927
Shareholders' equity	1,541,434						1,549,870						1,506,895						1,515,287						1,519,990
Total liabilities and shareholders' equity	$ 14,458,592						$ 14,408,612						$ 14,329,020						$ 14,379,323						$ 14,245,917
Net interest income/Interest rate spread			107,724		2.58 %				104,095		2.52 %				107,060		2.63 %				109,258		2.77 %				109,375		2.87 %
Net interest-earning assets/Net interest margin	$ 3,493,147				3.20 %		$ 3,456,589				3.10 %		$ 3,523,434				3.16 %		$ 3,563,155				3.23 %		$ 3,711,197				3.28 %
Ratio of interest-earning assets to interest-bearing liabilities	1.35X						1.34X						1.36X						1.36X						1.38X

(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 1.76%, 1.61%, 1.37%, 1.07%, and 0.77%, respectively, and average cost of Interest-bearing deposits were 2.24%, 2.06%, 1.77%, 1.40%, and 1.02%, respectively.
(h)	Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 5.45%, 5.30%, 5.17%, 4.99%, and 4.81%, respectively, Investment securities - 1.65%, 1.54%, 1.52%, 1.52%, and 1.61%, respectively, Interest-earning assets - 4.95%, 4.78%, 4.65%, 4.48%, and 4.31%, respectively. GAAP basis net interest rate spreads were 2.55%, 2.49%, 2.60%, 2.74%, and 2.84%, respectively, and GAAP basis net interest margins were 3.17%, 3.08%, 3.14%, 3.21%, and 3.25%, 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.
	Six months ended June 30,
	2024						2023
	Average balance		Interest		Avg. yield/ cost (h)		Average balance		Interest		Avg. yield/ cost (h)
Assets
Interest-earning assets:
Residential mortgage loans	$ 3,367,636		64,855		3.85 %		$ 3,489,545		64,494		3.70 %
Home equity loans	1,194,385		34,596		5.83 %		1,278,831		33,033		5.21 %
Consumer loans	2,041,008		51,367		5.06 %		2,133,794		43,457		4.11 %
Commercial real estate loans	3,011,493		89,066		5.85 %		2,830,316		75,463		5.30 %
Commercial loans	1,742,506		65,083		7.39 %		1,244,404		41,225		6.59 %
Loans receivable (a) (b) (d)	11,357,028		304,967		5.40 %		10,976,890		257,672		4.73 %
Mortgage-backed securities (c)	1,725,696		17,370		2.01 %		1,884,412		16,863		1.79 %
Investment securities (c) (d)	310,507		2,742		1.77 %		379,611		3,478		1.83 %
FHLB stock, at cost	28,897		1,105		7.69 %		42,584		1,534		7.26 %
Other interest-earning deposits	99,252		2,623		5.23 %		42,431		1,017		4.77 %
Total interest-earning assets	13,521,380		328,807		4.89 %		13,325,928		280,564		4.25 %
Noninterest-earning assets (e)	912,222						858,122
Total assets	$ 14,433,602						$ 14,184,050
Liabilities and shareholders' equity
Interest-bearing liabilities:
Savings deposits (g)	$ 2,133,157		10,993		1.04 %		$ 2,187,355		2,082		0.19 %
Interest-bearing demand deposits (g)	2,547,343		12,048		0.95 %		2,540,879		2,599		0.21 %
Money market deposit accounts (g)	1,959,661		16,514		1.69 %		2,314,631		10,516		0.92 %
Time deposits (g)	2,765,351		60,885		4.43 %		1,514,289		17,858		2.38 %
Borrowed funds (f)	396,444		9,370		4.75 %		789,057		18,139		4.64 %
Subordinated debt	114,267		2,296		4.02 %		113,914		2,296		4.03 %
Junior subordinated debentures	129,630		4,908		7.49 %		129,368		4,433		6.82 %
Total interest-bearing liabilities	10,045,853		117,014		2.34 %		9,589,493		57,923		1.22 %
Noninterest-bearing demand deposits (g)	2,581,646						2,855,260
Noninterest-bearing liabilities	260,452						229,831
Total liabilities	12,887,951						12,674,584
Shareholders' equity	1,545,651						1,509,466
Total liabilities and shareholders' equity	$ 14,433,602						$ 14,184,050
Net interest income/Interest rate spread			211,793		2.55 %				222,641		3.03 %
Net interest-earning assets/Net interest margin	$ 3,475,527				3.15 %		$ 3,736,435				3.37 %
Ratio of interest-earning assets to interest-bearing liabilities	1.35X						1.39X

(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 1.69% and 0.58%, respectively and average cost of Interest-bearing deposits were 2.15% and 0.78%, respectively.
(h)	Shown on a FTE basis. GAAP basis yields were: Loans - 5.37% and 4.71%, respectively; Investment securities - 1.59% and 1.61%, respectively; Interest-earning assets - 4.86% and 4.22%, respectively. GAAP basis net interest rate spreads were 2.52% and 3.00%, respectively; and GAAP basis net interest margins were 3.12% and 3.34%, respectively.

SOURCE Northwest Bancshares, Inc.