Northwest Bancshares, Inc. Announces Third Quarter 2024 net income of $34 million, or $0.26 per diluted share

Net interest margin expands 13 basis points to 3.33%, inclusive of 4bps from an interest recovery

Average deposits grew $10 million while cost of funds remained stable

Noninterest expense declines $2 million due to disciplined expense management

120th consecutive quarterly dividend of $0.20 per share declared

COLUMBUS, Ohio, Oct. 29, 2024 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2024 of $34 million, or $0.26 per diluted share. This represents a decrease of $5 million compared to the same quarter last year, when net income was $39 million, or $0.31 per diluted share, and an increase of $29 million compared to the prior quarter, when net income was $5 million, or $0.04 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended September 30, 2024 were 8.50% and 0.93% compared to 10.27% and 1.08% for the same quarter last year and 1.24% and 0.13% from the prior quarter.

Compared to adjusted net operating income (non-GAAP) of $35 million, or $0.27, per diluted share in the prior quarter, adjusted net operating income (non-GAAP) decreased by $1 million to $34 million, or $0.26, per diluted share for the quarter ended September 30, 2024. This decrease was driven by an increase in provision expense which was $5 million for the quarter ended September 30, 2024 compared to $(0.4) million for the quarter ended June 30, 2024. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended September 30, 2024 were 8.51% and 0.93% compared to 9.00% and 0.96% for prior quarter.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on November 18, 2024 to shareholders of record as of November 8, 2024. This is the 120^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 September 30, 2024, this represents an annualized dividend yield of approximately 6.0%.

Louis J. Torchio, President and CEO, added, "Our performance this quarter demonstrates the strength and resilience of our business model. We've delivered solid results that underscore our expanding earnings power, driven in large part by improvements in our net interest margin. This positive trajectory reflects our team's dedication to operational excellence and strategic growth initiatives."

"As we look ahead, we remain committed to creating long-term value for our shareholders. I'm pleased to announce that for the 120th consecutive quarter, we will be returning our earnings to our shareholders through a $0.20 per share dividend. This consistency in shareholder returns is a testament to our financial stability, performance and our unwavering focus on delivering sustainable growth. We enter the next quarter with confidence, buoyed by our strong performance and the ongoing optimization of our business operations. Our team remains focused on capitalizing on market opportunities while maintaining prudent risk management practices. Northwest is well-positioned to continue driving value for our shareholders, clients and communities in the quarters to come."

Balance Sheet Highlights

Dollars in thousands							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Average loans receivable	$ 11,223,602		11,368,749		11,190,959		(1.3) %		0.3 %
Average investments	1,998,855		2,021,347		2,117,135		(1.1) %		(5.6) %
Average deposits	12,096,811		12,086,362		11,719,866		0.1 %		3.2 %
Average borrowed funds	220,677		323,191		643,518		(31.7) %		(65.7) %

• Average loans receivable increased $33 million from the quarter ended September 30, 2023 driven by our commercial banking portfolio, which grew by $456 million in total, including a $372 million increase in our commercial and industrial portfolio as we have continued to build-out our commercial lending verticals. This was offset by a decline in our personal banking portfolio, which decreased by $423 million as cash flows from this portfolio were reinvested in our commercial portfolios. Compared to the second quarter of 2024, average loans receivable decreased by $145 million. Growth was muted in the quarter as we continue to reinvest cash flows from our personal banking portfolio and focus on profitability and credit discipline.

• Average investments declined $118 million from the quarter ended September 30, 2023 and $22 million from the quarter ended June 30, 2024. The decline from the prior year was driven by the investment portfolio restructure which occurred in the second quarter and from lack of reinvestment of cash flow over the past year. The decline in average investments from the prior quarter is expected to be temporary as current quarter purchases occurred later in the quarter. This is evident as ending balances increased $28 million from the prior quarter end.

• Average deposits grew $377 million from the quarter ended September 30, 2023, driven by a $666 million increase in our average time deposits as we competitively positioned our deposit products over the last year. 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 second quarter of 2024, average deposits grew $10 million, driven by a $12 million increase in our average interest-bearing checking deposits. This increase was partially offset by a decrease in time deposits.

• Average borrowings saw a significant reduction of $423 million compared to the quarter end September 30, 2023 and $103 million compared to the quarter ended June 30, 2024. The decrease in average borrowings is primarily attributable to the strategic pay-down of wholesale borrowings. This decrease was made possible by the restructuring of our investment 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 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Interest income	$ 171,381		166,854		151,598		2.7 %		13.0 %
Interest expense	60,079		60,013		43,230		0.1 %		39.0 %
Net interest income	$ 111,302		106,841		108,368		4.2 %		2.7 %
Net interest margin	3.33 %		3.20 %		3.23 %

Compared to the quarter ended September 30, 2023, net interest income increased $3 million and net interest margin increased to 3.33% from 3.23% for the quarter ended September 30, 2023. This increase in net interest income resulted primarily from:

• A $20 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 5.57% for the quarter ended September 30, 2024 from 5.01% for the quarter ended September 30, 2023. This increase includes a one-time interest recovery of $1.3 million on a commercial loan payoff. Excluding this interest recovery, the adjusted yield on loans for the quarter ended September 30, 2024 was 5.53% and the adjusted net interest margin was 3.29%

• A $17 million increase in interest expense 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 2.39% for the quarter ended September 30, 2024 from 1.74% for the quarter ended September 30, 2023.

Compared to the quarter ended June 30, 2024, net interest income increased $4 million and net interest margin increased to 3.33% for the quarter ended September 30, 2024 from 3.20% for the quarter ended June 30, 2024. This increase in net interest income resulted from the following:

• A $5 million increase in interest income driven by higher interest income on loans receivable and investments as average yield increased compared to the prior quarter. The average yield on loans improved to 5.57% from 5.47% and average investment yields increased to 2.48% from 2.13% for the quarter ended June 30, 2024.

Dollars in thousands							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Provision for credit losses - loans	$ 5,727		2,169		3,983		164.0 %		43.8 %
Provision for credit losses - unfunded commitments	(852)		(2,539)		(2,981)		(66.4) %		(71.4) %
Total provision for credit losses expense	$ 4,875		(370)		1,002		(1417.6) %		386.5 %

The total provision for credit losses for the quarter ended September 30, 2024 was $4.9 million primarily driven by growth within our commercial lending portfolio and changes 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 saw an increase in classified loans to $320 million, or 2.83% of total loans, at September 30, 2024 from $209 million, or 1.84% of total loans, at September 30, 2023 and $257 million, or 2.26% of total loans, at June 30, 2024. The primary driver of the increase over the past year and quarter is reflective of the Company's exposure to the Long Term Healthcare segment and the challenges a few operators have experienced post Covid.

Dollars in thousands							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Noninterest income:
Loss on sale of investments	$ -		(39,413)		-		NA		NA
Gain on sale of SBA loans	667		1,457		301		(54.2) %		121.6 %
Service charges and fees	15,932		15,527		15,270		2.6 %		4.3 %
Trust and other financial services income	7,924		7,566		7,085		4.7 %		11.8 %
Gain on real estate owned, net	105		487		29		(78.4) %		262.1 %
Income from bank-owned life insurance	1,434		1,371		4,561		4.6 %		(68.6) %
Mortgage banking income	744		901		632		(17.4) %		17.7 %
Other operating income	1,027		3,255		3,010		(68.4) %		(65.9) %
Total noninterest income/(loss)	$ 27,833		(8,849)		30,888		(414.5) %		(9.9) %

Noninterest income decreased from the quarter ended September 30, 2023 due to a decrease in income from bank-owned life insurance of $3 million as a result of death benefits received in the prior period. Compared to the quarter ended June 30, 2024, excluding the loss on sale of securities of $39 million, noninterest income decreased by $3 million due to a loss on an equity method investment, lower gain on sale of SBA loans and loss on the sale of buildings during the quarter.

Dollars in thousands							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Noninterest expense:
Personnel expense	$ 56,186		53,531		51,243		5.0 %		9.6 %
Non-personnel expense	34,581		38,889		36,327		(11.1) %		(4.8) %
Total noninterest expense	$ 90,767		92,420		87,570		(1.8) %		3.7 %

Noninterest expense increased from the quarter ended September 30, 2023 due to a $5 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 coupled with an increase in contracted employees utilized during the quarter and an increase in medical expenses.

Compared to the quarter ended June 30, 2024, noninterest expense decreased due to a $3 million increase in personnel expense driven by additional contracted employees utilized during the quarter and an increase in medical expenses, which were more than offset by a decrease in non-personnel expense of $4 million due to restructuring expenses in the prior quarter and a decrease in fraud losses.

Dollars in thousands							Change 3Q24 vs.
	3Q24		2Q24		3Q23		2Q24		3Q23
Income before income taxes	$ 43,493		5,942		50,684		632.0 %		(14.2) %
Income tax expense	9,875		1,195		11,464		726.4 %		(13.9) %
Net income	$ 33,618		4,747		39,220		608.2 %		(14.3) %

The provision for income taxes decreased by $2 million from the quarter ended September 30, 2023 and increased $9 million from the quarter ended June 30, 2024 primarily due to the quarterly change in income before income taxes.

Net income decreased from the quarter ended September 30, 2023, due to the factors discussed above, and increased from the quarter ended June 30, 2024 due to loss on sale of investments from the prior 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 September 30, 2024, Northwest operated 130 full-service financial centers and eleven free standing drive-up facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.'s common stock is listed on The Nasdaq Stock Market LLC ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed online at www.northwest.com.

# # #

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, 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, except as required by law.

Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(dollars in thousands, except per share amounts)
	September 30, 2024		December 31, 2023		September 30, 2023
Assets
Cash and cash equivalents	$ 226,883		122,260		161,995
Marketable securities available-for-sale (amortized cost of $1,248,104, $1,240,003 and $1,262,080, respectively)	1,111,868		1,043,359		1,010,076
Marketable securities held-to-maturity (fair value of $672,641, $699,506 and $682,681, respectively)	766,772		814,839		830,106
Total cash and cash equivalents and marketable securities	2,105,523		1,980,458		2,002,177
Loans held-for-sale	9,370		8,768		10,592
Residential mortgage loans	3,248,788		3,419,417		3,462,606
Home equity loans	1,167,202		1,227,858		1,258,765
Consumer loans	1,998,032		2,126,027		2,155,119
Commercial real estate loans	2,994,379		2,974,010		2,922,582
Commercial loans	1,886,787		1,658,729		1,500,609
Total loans receivable	11,304,558		11,414,809		11,310,273
Allowance for credit losses	(125,813)		(125,243)		(124,841)
Loans receivable, net	11,178,745		11,289,566		11,185,432
FHLB stock, at cost	21,223		30,146		40,404
Accrued interest receivable	46,678		47,353		42,624
Real estate owned, net	76		104		363
Premises and equipment, net	126,391		138,838		138,041
Bank-owned life insurance	255,324		251,895		250,502
Goodwill	380,997		380,997		380,997
Other intangible assets, net	3,363		5,290		6,013
Other assets	236,005		294,458		315,648
Total assets	$ 14,354,325		14,419,105		14,362,201
Liabilities and shareholders' equity
Liabilities
Noninterest-bearing demand deposits	$ 2,581,769		2,669,023		2,774,291
Interest-bearing demand deposits	2,676,779		2,634,546		2,598,080
Money market deposit accounts	1,956,747		1,968,218		2,042,813
Savings deposits	2,145,735		2,105,234		2,116,360
Time deposits	2,710,049		2,602,881		2,258,338
Total deposits	12,071,079		11,979,902		11,789,882
Borrowed funds	204,374		398,895		604,587
Subordinated debt	114,451		114,189		114,102
Junior subordinated debentures	129,769		129,574		129,509
Advances by borrowers for taxes and insurance	24,700		45,253		27,653
Accrued interest payable	15,125		13,669		7,915
Other liabilities	203,502		186,306		190,122
Total liabilities	12,763,000		12,867,788		12,863,770
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, 127,400,199, 127,110,453 and 127,101,349 shares issued and outstanding, respectively	1,274		1,271		1,271
Additional paid-in capital	1,030,384		1,024,852		1,023,591
Retained earnings	665,845		674,686		671,092
Accumulated other comprehensive loss	(106,178)		(149,492)		(197,523)
Total shareholders' equity	1,591,325		1,551,317		1,498,431
Total liabilities and shareholders' equity	$ 14,354,325		14,419,105		14,362,201
Equity to assets	11.09 %		10.76 %		10.43 %
Tangible common equity to tangible assets*	8.64 %		8.30 %		7.95 %
Book value per share	$ 12.49		12.20		11.79
Tangible book value per share*	$ 9.47		9.17		8.74
Closing market price per share	$ 13.38		12.48		10.23
Full time equivalent employees	1,975		2,098		2,084
Number of banking offices	141		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
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Interest income:
Loans receivable	$ 156,413		153,954		149,571		146,523		140,667
Mortgage-backed securities	10,908		9,426		7,944		7,951		8,072
Taxable investment securities	842		728		794		786		786
Tax-free investment securities	512		457		491		492		491
FHLB stock dividends	394		498		607		666		668
Interest-earning deposits	2,312		1,791		832		970		914
Total interest income	171,381		166,854		160,239		157,388		151,598
Interest expense:
Deposits	54,198		52,754		47,686		40,600		31,688
Borrowed funds	5,881		7,259		9,315		10,486		11,542
Total interest expense	60,079		60,013		57,001		51,086		43,230
Net interest income	111,302		106,841		103,238		106,302		108,368
Provision for credit losses - loans	5,727		2,169		4,234		3,801		3,983
Provision for credit losses - unfunded commitments	(852)		(2,539)		(799)		4,145		(2,981)
Net interest income after provision for credit losses	106,427		107,211		99,803		98,356		107,366
Noninterest income:
Loss on sale of investments	-		(39,413)		-		(1)		-
Gain on sale of SBA loans	667		1,457		873		388		301
Gain on sale of loans	-		-		-		726		-
Service charges and fees	15,932		15,527		15,523		15,922		15,270
Trust and other financial services income	7,924		7,566		7,127		6,884		7,085
Gain on real estate owned, net	105		487		57		1,084		29
Income from bank-owned life insurance	1,434		1,371		1,502		1,454		4,561
Mortgage banking income	744		901		452		247		632
Other operating income	1,027		3,255		2,429		2,465		3,010
Total noninterest income/(loss)	27,833		(8,849)		27,963		29,169		30,888
Noninterest expense:
Compensation and employee benefits	56,186		53,531		51,540		50,194		51,243
Premises and occupancy costs	7,115		7,464		7,627		7,049		7,052
Office operations	2,811		3,819		2,767		3,747		3,398
Collections expense	474		406		336		328		551
Processing expenses	14,570		14,695		14,725		15,017		14,672
Marketing expenses	2,004		2,410		2,149		1,317		2,379
Federal deposit insurance premiums	2,763		2,865		3,023		2,643		2,341
Professional services	3,302		3,728		4,065		6,255		3,002
Amortization of intangible assets	590		635		701		724		795
Real estate owned expense	23		57		66		51		141
Merger, asset disposition and restructuring expense	43		1,915		955		2,354		-
Other expenses	886		895		2,070		997		1,996
Total noninterest expense	90,767		92,420		90,024		90,676		87,570
Income before income taxes	43,493		5,942		37,742		36,849		50,684
Income tax expense	9,875		1,195		8,579		7,835		11,464
Net income	$ 33,618		4,747		29,163		29,014		39,220
Basic earnings per share	$ 0.26		0.04		0.23		0.23		0.31
Diluted earnings per share	$ 0.26		0.04		0.23		0.23		0.31
Annualized return on average equity	8.50 %		1.24 %		7.57 %		7.64 %		10.27 %
Annualized return on average assets	0.93 %		0.13 %		0.81 %		0.80 %		1.08 %
Annualized return on average tangible common equity *	11.26 %		1.65 %		10.08 %		10.28 %		13.80 %
Efficiency ratio	65.24 %		94.31 %		68.62 %		66.93 %		62.88 %
Efficiency ratio, excluding certain items **	64.78 %		65.41 %		67.35 %		64.66 %		62.31 %
Annualized noninterest expense to average assets	2.52 %		2.57 %		2.51 %		2.51 %		2.42 %
Annualized noninterest expense to average assets, excluding certain items**	2.50 %		2.50 %		2.47 %		2.43 %		2.39 %

*	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, 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)
	Nine months ended September 30,
	2024		2023
Interest income:
Loans receivable	$ 459,938		397,136
Mortgage-backed securities	28,278		24,935
Taxable investment securities	2,364		2,472
Tax-free investment securities	1,460		1,858
FHLB stock dividends	1,499		2,202
Interest-earning deposits	4,935		1,931
Total interest income	498,474		430,534
Interest expense:
Deposits	154,638		64,743
Borrowed funds	22,455		36,410
Total interest expense	177,093		101,153
Net interest income	321,381		329,381
Provision for credit losses - loans	12,130		14,863
Provision for credit losses - unfunded commitments	(4,190)		65
Net interest income after provision for credit losses	313,441		314,453
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	2,997		1,412
Service charges and fees	46,982		43,292
Trust and other financial services income	22,617		20,400
Gain on real estate owned, net	649		922
Income from bank-owned life insurance	4,307		7,134
Mortgage banking income	2,097		2,184
Other operating income	6,711		9,311
Total noninterest income	46,947		84,654
Noninterest expense:
Compensation and employee benefits	161,257		145,497
Premises and occupancy costs	22,206		22,102
Office operations	9,397		9,208
Collections expense	1,216		1,367
Processing expenses	43,990		43,670
Marketing expenses	6,563		8,127
Federal deposit insurance premiums	8,651		6,628
Professional services	11,095		11,564
Amortization of intangible assets	1,926		2,546
Real estate owned expense	146		405
Merger, asset disposition and restructuring expense	2,913		4,395
Other expenses	3,851		5,369
Total noninterest expense	273,211		260,878
Income before income taxes	87,177		138,229
Income tax expense	19,649		32,286
Net income	$ 67,528		105,943
Basic earnings per share	$ 0.53		0.83
Diluted earnings per share	$ 0.53		0.83
Annualized return on average equity	5.80 %		9.37 %
Annualized return on average assets	0.63 %		0.99 %
Annualized return on tangible common equity *	7.71 %		12.61 %
Efficiency ratio	74.18 %		63.01 %
Efficiency ratio, excluding certain items **	65.82 %		61.33 %
Annualized noninterest expense to average assets	2.53 %		2.45 %
Annualized noninterest expense to average assets, excluding certain items **	2.49 %		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						Nine months ended September 30,
	September 30, 2024		June 30, 2024		September 30, 2023		2024		2023
Reconciliation of net income to adjusted net operating income:
Net income (GAAP)	$ 33,618		4,747		39,220		67,528		105,943
Non-GAAP adjustments
Add: merger, asset disposition and restructuring expense	43		1,915		-		2,913		4,395
Add: loss on the sale of investments	-		39,413		-		39,413		8,306
Less: gain on sale of mortgage servicing rights	-		-		-		-		(8,305)
Less: tax benefit of non-GAAP adjustments	(12)		(11,572)		-		(11,851)		(1,231)
Adjusted net operating income (non-GAAP)	$ 33,649		34,503		39,220		98,003		109,108
Diluted earnings per share (GAAP)	$ 0.26		0.04		0.31		0.53		0.83
Diluted adjusted operating earnings per share (non-GAAP)	$ 0.26		0.27		0.31		0.77		0.86
Average equity	$ 1,572,897		1,541,434		1,515,287		1,554,800		1,511,428
Average assets	14,351,669		14,458,592		14,379,323		14,406,092		14,249,857
Annualized return on average equity (GAAP)	8.50 %		1.24 %		10.27 %		5.80 %		9.37 %
Annualized return on average assets (GAAP)	0.93 %		0.13 %		1.08 %		0.63 %		0.99 %
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)	8.51 %		9.00 %		10.27 %		8.42 %		9.65 %
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)	0.93 %		0.96 %		1.08 %		0.91 %		1.02 %

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.

	September 30, 2024		December 31, 2023		September 30, 2023
Tangible common equity to assets
Total shareholders' equity	$ 1,591,325		1,551,317		1,498,431
Less: goodwill and intangible assets	(384,360)		(386,287)		(387,010)
Tangible common equity	$ 1,206,965		1,165,030		1,111,421
Total assets	$ 14,354,325		14,419,105		14,362,201
Less: goodwill and intangible assets	(384,360)		(386,287)		(387,010)
Tangible assets	$ 13,969,965		14,032,818		13,975,191
Tangible common equity to tangible assets	8.64 %		8.30 %		7.95 %
Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments
Tangible common equity	$ 1,206,965		1,165,030		1,111,421
Less: unrealized losses on held to maturity investments	(94,131)		(115,334)		(147,425)
Add: deferred taxes on unrealized losses on held to maturity investments	26,357		32,294		41,279
Tangible common equity, including unrealized losses on held-to-maturity investments	$ 1,139,191		1,081,990		1,005,275
Tangible assets	$ 13,969,965		14,032,818		13,975,191
Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments	8.15 %		7.71 %		7.19 %
Tangible book value per share
Tangible common equity	$ 1,206,965		1,165,030		1,111,421
Common shares outstanding	127,400,199		127,110,453		127,101,349
Tangible book value per share	9.47		9.17		8.74

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										Nine months ended September 30,
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023		2024		2023
Annualized return on average tangible common equity
Net income	$ 33,618		4,747		29,163		29,014		39,220		67,528		105,943
Average shareholders' equity	1,572,897		1,541,434		1,549,870		1,506,895		1,515,287		1,554,800		1,511,428
Less: average goodwill and intangible assets	(384,730)		(385,364)		(386,038)		(386,761)		(387,523)		(385,375)		(388,365)
Average tangible common equity	$ 1,188,167		1,156,070		1,163,832		1,120,134		1,127,764		1,169,425		1,123,063
Annualized return on average tangible common equity	11.26 %		1.65 %		10.08 %		10.28 %		13.80 %		7.71 %		12.61 %
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	$ 90,767		92,420		90,024		90,676		87,570		273,211		260,878
Less: amortization expense	(590)		(635)		(701)		(724)		(795)		(1,926)		(2,546)
Less: merger, asset disposition and restructuring expenses	(43)		(1,915)		(955)		(2,354)		-		(2,913)		(4,395)
Non-interest expense, excluding amortization and merger, assets disposition and restructuring expenses	$ 90,134		89,870		88,368		87,598		86,775		268,372		253,937
Net interest income	$ 111,302		106,841		103,238		106,302		108,368		321,381		329,381
Non-interest income	27,833		(8,849)		27,963		29,169		30,888		46,947		84,654
Add: loss on the sale of investments	-		39,413		-		1		-		39,413		8,306
Less: gain on sale of mortgage servicing rights	-		-		-		-		-		-		(8,305)
Net interest income plus non-interest income, excluding loss on sale of investments and gain on sale of mortgage servicing rights	$ 139,135		137,405		131,201		135,472		139,256		407,741		414,036
Efficiency ratio, excluding loss on sale of investments, gain on sale of mortgage servicing rights, amortization and merger, asset disposition and restructuring expenses	64.78 %		65.41 %		67.35 %		64.66 %		62.31 %		65.82 %		61.33 %
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	$ 90,134		89,870		88,368		87,598		86,775		268,372		253,937
Average assets	14,351,669		14,458,592		14,408,612		14,329,020		14,379,323		14,406,092		14,249,857
Annualized non-interest expense to average assets, excluding amortization and merger, asset disposition and restructuring expense	2.50 %		2.50 %		2.47 %		2.43 %		2.39 %		2.49 %		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 September 30, 2024
	Balance		Percent of total deposits		Number of relationships
Uninsured deposits per the Call Report (1)	$ 3,097,247		25.7 %		5,234
Less intercompany deposit accounts	1,201,625		10.0 %		12
Less collateralized deposit accounts	480,039		4.0 %		262
Uninsured deposits excluding intercompany and collateralized accounts	$ 1,415,583		11.7 %		4,960

(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 $19.6 million, or 0.16% of total deposits, as of September 30, 2024. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $103 million, or 0.85% of total deposits, as of September 30, 2024. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $285,000 as of September 30, 2024.

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

	As of September 30, 2024
	Balance		Percent of total deposits		Number of accounts
Personal noninterest bearing demand deposits	$ 1,316,845		10.9 %		286,061
Business noninterest bearing demand deposits	1,264,924		10.5 %		43,284
Personal interest-bearing demand deposits	1,340,668		11.1 %		56,490
Business interest-bearing demand deposits	1,336,111		11.0 %		7,688
Personal money market deposits	1,394,904		11.6 %		24,735
Business money market deposits	561,843		4.6 %		2,738
Savings deposits	2,145,735		17.8 %		183,941
Time deposits	2,710,049		22.5 %		81,728
Total deposits	$ 12,071,079		100.0 %		686,665

Our average deposit account balance as of September 30, 2024 was $18,000. The Company's insured cash sweep deposit balance was $487 million as of September 30, 2024.

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

	3/31/2023		6/30/2023		9/30/2023		12/31/2023		3/31/2024		6/30/2024		9/30/2024
Personal noninterest bearing demand deposits	$ 1,428,232		1,397,167		1,375,144		1,357,875		1,369,294		1,350,520		1,316,845
Business noninterest bearing demand deposits	1,467,860		1,423,396		1,399,147		1,311,148		1,249,085		1,231,179		1,264,924
Personal interest-bearing demand deposits	1,627,546		1,535,254		1,477,617		1,464,058		1,427,140		1,396,825		1,340,668
Business interest-bearing demand deposits	466,105		624,252		689,914		812,433		805,069		815,358		955,120
Municipal demand deposits	447,852		418,147		430,549		358,055		325,657		353,567		380,991
Personal money market deposits	1,626,614		1,511,652		1,463,689		1,435,939		1,393,532		1,390,162		1,394,904
Business money market deposits	701,436		642,601		579,124		532,279		559,005		574,679		561,843
Savings deposits	2,194,743		2,120,215		2,116,360		2,105,234		2,156,048		2,148,727		2,145,735
Time deposits	1,576,791		1,989,711		2,258,338		2,602,881		2,786,814		2,826,362		2,710,049
Total deposits	$ 11,537,179		11,662,395		11,789,882		11,979,902		12,071,644		12,087,379		12,071,079

Northwest Bancshares, Inc. and Subsidiaries
Regulatory Capital Requirements (Unaudited)
(dollars in thousands)
	At September 30, 2024
	Actual (1)				Minimum capital requirements (2)				Well capitalized requirements
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk weighted assets)
Northwest Bancshares, Inc.	$ 1,705,283		16.024 %		$ 1,117,392		10.500 %		$ 1,064,183		10.000 %
Northwest Bank	1,460,909		13.740 %		1,116,384		10.500 %		1,063,223		10.000 %
Tier 1 capital (to risk weighted assets)
Northwest Bancshares, Inc.	1,457,698		13.698 %		904,555		8.500 %		851,346		8.000 %
Northwest Bank	1,327,894		12.489 %		903,739		8.500 %		850,578		8.000 %
Common equity tier 1 capital (to risk weighted assets)
Northwest Bancshares, Inc.	1,331,918		12.516 %		744,928		7.000 %		691,719		6.500 %
Northwest Bank	1,327,894		12.489 %		744,256		7.000 %		691,095		6.500 %
Tier 1 capital (leverage) (to average assets)
Northwest Bancshares, Inc.	1,457,698		10.283 %		567,025		4.000 %		708,782		5.000 %
Northwest Bank	1,327,894		9.374 %		566,633		4.000 %		708,292		5.000 %

(1)	September 30, 2024 figures are estimated.
(2)	Amounts and ratios include the capital conservation buffer of 2.5%, which does not apply to Tier 1 capital to average assets (leverage ratio). For further information related to the capital conservation buffer, see "Item 1. Business - Supervision and Regulation" of our 2023 Annual Report on Form 10-K.

Northwest Bancshares, Inc. and Subsidiaries
Marketable Securities (Unaudited)
(dollars in thousands)
		September 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		$ 46,292		-		(8,497)		37,795		6.05
Debt issued by government sponsored enterprises:
Due after one year through five years		136		-		(4)		132		0.87
Municipal securities:
Due after one year through five years		884		18		(2)		900		1.72
Due after five years through ten years		15,729		277		(1,382)		14,624		7.57
Due after ten years		52,244		288		(6,971)		45,561		10.37
Corporate debt issues:
Due after five years through ten years		25,396		307		(867)		24,836		5.38
Mortgage-backed agency securities:
Fixed rate pass-through		222,573		2,926		(12,641)		212,858		6.26
Variable rate pass-through		3,905		57		(4)		3,958		4.01
Fixed rate agency CMOs		835,445		3,801		(113,373)		725,873		5.22
Variable rate agency CMOs		45,500		44		(213)		45,331		7.68
Total mortgage-backed agency securities		1,107,423		6,828		(126,231)		988,020		5.55
Total marketable securities available-for-sale		$ 1,248,104		7,718		(143,954)		1,111,868		5.79
Marketable securities held-to-maturity
Government sponsored
Due after one year through five years		$ 109,460		-		(10,520)		98,940		3.65
Due after five years through ten years		15,000		-		(1,923)		13,077		5.04
Mortgage-backed agency securities:
Fixed rate pass-through		136,439		-		(16,184)		120,255		4.76
Variable rate pass-through		387		-		-		387		3.00
Fixed rate agency CMOs		504,957		-		(65,502)		439,455		5.66
Variable rate agency CMOs		529		-		(2)		527		5.01
Total mortgage-backed agency securities		642,312		-		(81,688)		560,624		5.47
Total marketable securities held-to-maturity		$ 766,772		-		(94,131)		672,641		5.20

Northwest Bancshares, Inc. and Subsidiaries Borrowed Funds (Unaudited) (dollars in thousands)
	September 30, 2024
	Amount		Average rate
Term notes payable to the FHLB of Pittsburgh, due within one year	$ 175,000		5.15 %
Collateralized borrowings, due within one year	21,624		1.59 %
Collateral received, due within one year	7,750		5.72 %
Subordinated debentures, net of issuance costs	114,451		4.28 %
Junior subordinated debentures	129,769		7.49 %
Total borrowed funds *	$ 448,594		5.44 %

*	As of September 30, 2024, the Company had $3.3 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 September 30, 2024, as well as $500 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 September 30, 2024:
Property type		Percent of portfolio
5 or more unit dwelling		16.6 %
Retail Building		11.5
Nursing Home		11.2
Commercial office building - non-owner occupied		8.9
Manufacturing & industrial building		5.4
Warehouse/storage building		5.1
Residential acquisition & development - 1-4 family, townhouses and apartments		4.3
Commercial office building - owner occupied		4.0
Multi-use building - commercial, retail and residential		3.9
Multi-use building - office and warehouse		3.1
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		14.2
Total		100.0 %
The following table describes the collateral of our commercial real estate portfolio by state at September 30, 2024:
State		Percent of portfolio
New York		33.9 %
Pennsylvania		29.3
Ohio		19.8
Indiana		8.9
All other		8.1
Total		100.0 %

Northwest Bancshares, Inc. and Subsidiaries Asset Quality (Unaudited) (dollars in thousands)
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Nonaccrual loans current:
Residential mortgage loans	$ 1,585		1,563		1,351		959		1,951
Home equity loans	1,239		1,088		974		871		947
Consumer loans	1,229		1,268		1,295		1,051		1,049
Commercial real estate loans	36,735		66,181		66,895		64,603		44,639
Commercial loans	1,922		788		934		1,182		1,369
Total nonaccrual loans current	$ 42,710		70,888		71,449		68,666		49,955
Nonaccrual loans delinquent 30 days to 59 days:
Residential mortgage loans	$ 37		100		1,454		933		48
Home equity loans	157		260		125		174		92
Consumer loans	227		305		294		225		274
Commercial real estate loans	362		699		574		51		1,913
Commercial loans	444		183		161		139		90
Total nonaccrual loans delinquent 30 days to 59 days	$ 1,227		1,547		2,608		1,522		2,417
Nonaccrual loans delinquent 60 days to 89 days:
Residential mortgage loans	$ 549		578		-		511		66
Home equity loans	87		234		488		347		319
Consumer loans	484		603		381		557		312
Commercial real estate loans	207		2,243		52		831		212
Commercial loans	48		8,088		201		56		291
Total nonaccrual loans delinquent 60 days to 89 days	$ 1,375		11,746		1,122		2,302		1,200
Nonaccrual loans delinquent 90 days or more:
Residential mortgage loans	$ 5,370		4,162		4,304		6,324		7,695
Home equity loans	2,558		2,473		2,822		3,100		2,073
Consumer loans	3,265		2,433		2,659		3,212		2,463
Commercial real estate loans	6,167		5,849		6,931		6,488		8,416
Commercial loans	14,156		3,061		3,165		2,770		2,435
Total nonaccrual loans delinquent 90 days or more	$ 31,516		17,978		19,881		21,894		23,082
Total nonaccrual loans	$ 76,828		102,159		95,060		94,384		76,654
Total nonaccrual loans	$ 76,828		102,159		95,060		94,384		76,654
Loans 90 days past due and still accruing	1,045		2,511		2,452		2,698		728
Nonperforming loans	77,873		104,670		97,512		97,082		77,382
Real estate owned, net	76		74		50		104		363
Nonperforming assets	$ 77,949		104,744		97,562		97,186		77,745
Nonperforming loans to total loans	0.69 %		0.92 %		0.85 %		0.85 %		0.68 %
Nonperforming assets to total assets	0.54 %		0.73 %		0.67 %		0.67 %		0.54 %
Allowance for credit losses to total loans	1.11 %		1.10 %		1.09 %		1.10 %		1.10 %
Allowance for credit losses to nonperforming loans	161.56 %		119.49 %		128.08 %		129.01 %		161.33 %

Northwest Bancshares, Inc. and Subsidiaries Loans by Credit Quality Indicators (Unaudited) (dollars in thousands)
At September 30, 2024		Pass		Special mention *		Substandard **		Doubtful		Loss		Loans receivable
Personal Banking:
Residential mortgage loans		$ 3,246,727		-		11,431		-		-		3,258,158
Home equity loans		1,162,951		-		4,251		-		-		1,167,202
Consumer loans		1,992,110		-		5,922		-		-		1,998,032
Total Personal Banking		6,401,788		-		21,604		-		-		6,423,392
Commercial Banking:
Commercial real estate loans		2,634,987		87,693		271,699		-		-		2,994,379
Commercial loans		1,808,433		51,714		26,640		-		-		1,886,787
Total Commercial Banking		4,443,420		139,407		298,339		-		-		4,881,166
Total loans		$ 10,845,208		139,407		319,943		-		-		11,304,558
At June 30, 2024
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

*	Includes $2.9 million, $2.5 million, $2.4 million, $7.8 million, and $6.9 million of acquired loans at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.
**	Includes $26.0 million, $24.3 million, $27.2 million, $20.3 million, and $28.9 million of acquired loans at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

Northwest Bancshares, Inc. and Subsidiaries Loan Delinquency (Unaudited) (dollars in thousands)
	September 30, 2024				*		June 30, 2024				*		March 31, 2024				*		December 31, 2023				*		September 30, 2023				*
(Number of loans and dollar amount of loans)
Loans delinquent 30 days to 59 days:
Residential mortgage loans	16		$ 685		- %		12		$ 616		- %		351		$ 38,502		1.1 %		307		$ 30,041		0.9 %		6		$ 573		- %
Home equity loans	112		3,907		0.3 %		104		3,771		0.3 %		113		4,608		0.4 %		121		5,761		0.5 %		112		4,707		0.4 %
Consumer loans	801		10,777		0.5 %		742		10,372		0.5 %		737		9,911		0.5 %		896		11,211		0.5 %		733		9,874		0.5 %
Commercial real estate loans	21		5,919		0.2 %		21		4,310		0.1 %		25		6,396		0.2 %		23		3,204		0.1 %		22		3,411		0.1 %
Commercial loans	34		3,260		0.2 %		59		4,366		0.3 %		62		3,091		0.2 %		59		4,196		0.3 %		52		2,847		0.2 %
Total loans delinquent 30 days to 59 days	984		$ 24,548		0.2 %		938		$ 23,435		0.2 %		1,288		$ 62,508		0.5 %		1,406		$ 54,413		0.5 %		925		$ 21,412		0.2 %
Loans delinquent 60 days to 89 days:
Residential mortgage loans	75		$ 9,027		0.3 %		70		$ 8,223		0.2 %		3		$ 70		- %		69		$ 7,796		0.2 %		56		$ 5,395		0.2 %
Home equity loans	27		882		0.1 %		35		1,065		0.1 %		26		761		0.1 %		37		982		0.1 %		40		1,341		0.1 %
Consumer loans	296		3,600		0.2 %		295		3,198		0.2 %		231		2,545		0.1 %		322		3,754		0.2 %		236		2,707		0.1 %
Commercial real estate loans	11		7,643		0.3 %		9		3,155		0.1 %		5		807		- %		9		1,031		- %		13		1,588		0.1 %
Commercial loans	19		753		- %		22		8,732		0.5 %		27		1,284		0.1 %		16		703		- %		15		981		0.1 %
Total loans delinquent 60 days to 89 days	428		$ 21,905		0.2 %		431		$ 24,373		0.2 %		292		$ 5,467		- %		453		$ 14,266		0.1 %		360		$ 12,012		0.1 %
Loans delinquent 90 days or more: **
Residential mortgage loans	52		$ 5,370		0.2 %		53		$ 5,553		0.2 %		50		$ 5,813		0.2 %		70		$ 7,995		0.2 %		79		$ 7,695		0.2 %
Home equity loans	67		2,558		0.2 %		51		2,506		0.2 %		71		2,823		0.2 %		81		3,126		0.3 %		73		2,206		0.2 %
Consumer loans	402		3,983		0.2 %		358		3,012		0.1 %		398		3,345		0.2 %		440		3,978		0.2 %		357		3,020		0.1 %
Commercial real estate loans	13		6,167		0.2 %		19		6,034		0.2 %		22		6,931		0.2 %		27		6,712		0.2 %		27		8,416		0.3 %
Commercial loans	85		14,484		0.8 %		72		3,385		0.2 %		62		3,421		0.2 %		53		2,780		0.2 %		39		2,472		0.2 %
Total loans delinquent 90 days or more	619		$ 32,562		0.3 %		553		$ 20,490		0.2 %		603		$ 22,333		0.2 %		671		$ 24,591		0.2 %		575		$ 23,809		0.2 %
Total loans delinquent	2,031		$ 79,015		0.7 %		1,922		$ 68,298		0.6 %		2,183		$ 90,308		0.8 %		2,530		$ 93,270		0.8 %		1,860		$ 57,233		0.5 %

*	Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
**	Includes purchased credit deteriorated loans of $0.2 million, $0.1 million, $0.4 million, $0.6 million, and $1.4 million at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

Northwest Bancshares, Inc. and Subsidiaries Allowance for Credit Losses (Unaudited) (dollars in thousands)
	Quarter ended
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Beginning balance	$ 125,070		124,897		125,243		124,841		124,423
Provision	5,727		2,169		4,234		3,801		3,983
Charge-offs residential mortgage	(255)		(252)		(162)		(266)		(171)
Charge-offs home equity	(890)		(237)		(412)		(133)		(320)
Charge-offs consumer	(3,560)		(2,561)		(4,573)		(3,860)		(3,085)
Charge-offs commercial real estate	(475)		(500)		(349)		(742)		(484)
Charge-offs commercial	(1,580)		(1,319)		(1,163)		(806)		(1,286)
Recoveries	1,776		2,873		2,079		2,408		1,781
Ending balance	$ 125,813		125,070		124,897		125,243		124,841
Net charge-offs to average loans, annualized	0.18 %		0.07 %		0.16 %		0.12 %		0.13 %

	Nine months ended September 30,
	2024		2023
Beginning balance	$ 125,243		118,036
ASU 2022-02 Adoption	-		426
Provision	12,130		14,863
Charge-offs residential mortgage	(669)		(923)
Charge-offs home equity	(1,539)		(719)
Charge-offs consumer	(10,694)		(8,591)
Charge-offs commercial real estate	(1,324)		(1,624)
Charge-offs commercial	(4,062)		(3,360)
Recoveries	6,728		6,733
Ending balance	$ 125,813		124,841
Net charge-offs to average loans, annualized	0.14 %		0.10 %

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
	September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023
	Average balance		Interest		Avg. yield/ cost		Average balance		Interest		Avg. yield/ cost		Average balance		Interest		Avg. yield/ cost		Average balance		Interest		Avg. yield/ cost		Average balance		Interest		Avg. yield/ cost
Assets:
Interest-earning assets:
Residential mortgage loans	$ 3,286,316		31,537		3.84 %		$ 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 %
Home equity loans	1,166,866		17,296		5.90 %		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 %
Consumer loans	1,955,988		26,034		5.29 %		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 %
Commercial real estate loans	2,995,032		47,473		6.31 %		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 %
Commercial loans	1,819,400		34,837		7.62 %		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 %
Total loans receivable (a) (b) (d)	11,223,602		157,177		5.57 %		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 %
Mortgage-backed securities (c)	1,735,728		10,908		2.51 %		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 %
Investment securities (c) (d)	263,127		1,504		2.29 %		287,262		1,316		1.83 %		333,752		1,430		1.71 %		335,121		1,425		1.70 %		336,125		1,431		1.70 %
FHLB stock, at cost	20,849		394		7.51 %		25,544		498		7.84 %		32,249		607		7.57 %		35,082		665		7.52 %		37,722		668		7.03 %
Other interest-earning deposits	173,770		2,312		5.29 %		135,520		1,791		5.23 %		61,666		832		5.34 %		71,987		970		5.27 %		67,143		915		5.33 %
Total interest-earning assets	13,417,076		172,295		5.11 %		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 %
Noninterest-earning assets (e)	934,593						907,432						918,331						893,426						966,364
Total assets	$ 14,351,669						$ 14,458,592						$ 14,408,612						$ 14,329,020						$ 14,379,323
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings deposits (g)	$ 2,151,933		6,680		1.23 %		$ 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 %
Interest-bearing demand deposits (g)	2,567,682		7,452		1.15 %		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 %
Money market deposit accounts (g)	1,966,684		9,170		1.85 %		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 %
Time deposits (g)	2,830,737		30,896		4.34 %		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 %
Borrowed funds (f)	220,677		2,266		4.09 %		323,191		3,662		4.56 %		469,697		5,708		4.89 %		548,089		6,826		4.94 %		643,518		7,937		4.89 %
Subordinated debt	114,396		1,148		4.01 %		114,308		1,148		4.02 %		114,225		1,148		4.02 %		114,134		1,148		4.02 %		114,045		1,148		4.03 %
Junior subordinated debentures	129,727		2,467		7.56 %		129,663		2,449		7.47 %		129,597		2,459		7.51 %		129,532		2,512		7.59 %		129,466		2,456		7.42 %
Total interest-bearing liabilities	9,981,836		60,079		2.39 %		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 %
Noninterest-bearing demand deposits (g)	2,579,775						2,595,511						2,567,781						2,675,788						2,757,091
Noninterest-bearing liabilities	217,161						263,634						257,269						234,177						257,141
Total liabilities	12,778,772						12,917,158						12,858,742						12,822,125						12,864,036
Shareholders' equity	1,572,897						1,541,434						1,549,870						1,506,895						1,515,287
Total liabilities and shareholders' equity	$ 14,351,669						$ 14,458,592						$ 14,408,612						$ 14,329,020						$ 14,379,323
Net interest income/Interest rate spread FTE			112,216		2.72 %				107,724		2.58 %				104,095		2.52 %				107,060		2.63 %				109,258		2.77 %
Net interest-earning assets/Net interest margin FTE	$ 3,435,240				3.33 %		$ 3,493,147				3.20 %		$ 3,456,589				3.10 %		$ 3,523,434				3.16 %		$ 3,563,155				3.23 %
Tax equivalent adjustment (d)			914						883						857						758						890
Net interest income, GAAP basis			111,302						106,841						103,238						106,302						108,368
Ratio of interest-earning assets to interest-bearing liabilities	1.34X						1.35X						1.34X						1.36X						1.36X

(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 1.78%, 1.76%, 1.61%, 1.37%, and 1.07%, respectively, and average cost of Interest-bearing deposits were 2.27%, 2.24%, 2.06%, 1.77%, and 1.40%, 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.
	Nine months ended September 30,
	2024						2023
	Average balance		Interest		Avg. yield/ cost (h)		Average balance		Interest		Avg. yield/ cost (h)
Assets
Interest-earning assets:
Residential mortgage loans	$ 3,340,332		96,392		3.85 %		$ 3,485,130		97,090		3.71 %
Home equity loans	1,185,145		51,893		5.85 %		1,273,878		50,467		5.30 %
Consumer loans	2,012,461		77,401		5.14 %		2,119,717		66,977		4.22 %
Commercial real estate loans	3,005,966		136,556		6.07 %		2,857,555		117,074		5.40 %
Commercial loans	1,768,325		99,923		7.55 %		1,312,750		67,465		6.78 %
Loans receivable (a) (b) (d)	11,312,229		462,165		5.46 %		11,049,030		399,073		4.83 %
Mortgage-backed securities (c)	1,729,064		28,278		2.18 %		1,849,567		24,935		1.80 %
Investment securities (c) (d)	294,598		4,251		1.92 %		364,956		4,909		1.79 %
FHLB stock, at cost	26,195		1,499		7.64 %		40,945		2,202		7.19 %
Other interest-earning deposits	124,037		4,935		5.31 %		64,560		1,931		4.00 %
Total interest-earning assets	13,486,123		501,128		4.96 %		13,369,058		433,050		4.33 %
Noninterest-earning assets (e)	919,969						880,799
Total assets	$ 14,406,092						$ 14,249,857
Liabilities and shareholders' equity
Interest-bearing liabilities:
Savings deposits (g)	$ 2,139,461		17,673		1.10 %		$ 2,163,564		4,777		0.30 %
Interest-bearing demand deposits (g)	2,554,172		19,501		1.02 %		2,550,433		6,684		0.35 %
Money market deposit accounts (g)	1,962,019		25,684		1.75 %		2,246,422		17,289		1.03 %
Time deposits (g)	2,787,306		91,780		4.40 %		1,733,428		35,993		2.78 %
Borrowed funds (f)	337,427		11,636		4.61 %		740,011		26,077		4.71 %
Subordinated debt	114,310		3,444		4.02 %		113,958		3,444		4.03 %
Junior subordinated debentures	129,662		7,375		7.60 %		129,401		6,889		7.02 %
Total interest-bearing liabilities	10,024,357		177,093		2.36 %		9,677,217		101,153		1.40 %
Noninterest-bearing demand deposits (g)	2,581,018						2,822,178
Noninterest-bearing liabilities	245,917						239,034
Total liabilities	12,851,292						12,738,429
Shareholders' equity	1,554,800						1,511,428
Total liabilities and shareholders' equity	$ 14,406,092						$ 14,249,857
Net interest income/Interest rate spread			324,035		2.60 %				331,897		2.93 %
Net interest-earning assets/Net interest margin	$ 3,461,766				3.21 %		$ 3,691,841				3.32 %
Tax equivalent adjustment (d)			2,654						2,516
Net interest income, GAAP basis			321,381						329,381
Ratio of interest-earning assets to interest-bearing liabilities	1.35X						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 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 1.72% and 0.75%, respectively and average cost of Interest-bearing deposits were 2.19% and 1.00%, respectively.

SOURCE Northwest Bancshares, Inc.