Northwest Bancshares, Inc. Announces Third Quarter 2025 GAAP net income of $3 million, or $0.02 per diluted share

Rhea-AI Summary

Northwest Bancshares (Nasdaq: NWBI) reported 3Q25 GAAP net income of $3 million, or $0.02 per diluted share, versus $34 million, or $0.26, in both prior periods. The company reported record total revenue of $168 million (≈21% YoY) and adjusted net income (non-GAAP) of $41 million, or $0.29 per diluted share. The July 25, 2025 acquisition of Penns Woods added $2.2 billion of assets (including $1.8 billion loans) and increased average balances, NII, and expenses. The Board declared a $0.20 quarterly dividend payable Nov 18, 2025 (record Nov 6), the 124th consecutive quarter, implying ~6.5% annualized yield as of Sept 30, 2025.

Positive

• Record total revenue of $168 million (+21% YoY)
• Adjusted net income (non-GAAP) of $41 million ($0.29 per share)
• Acquisition added $2.2 billion of total assets on close
• Quarterly dividend of $0.20 (124th consecutive quarter)

Negative

• GAAP net income fell to $3 million from $34 million prior quarter
• Provision for credit losses of $31 million (incl. $20.6M Day‑1)
• Total noninterest expense of $133.5 million (+36.9%) including $31M merger charges
• Classified loans at $527 million (4.07% of total loans)

Insights

Bank financial analyst

Acquisition drove record revenue but GAAP earnings fell sharply; adjusted results show core earnings strength amid elevated merger costs.

Northwest Bancshares reported GAAP net income of $3 million ($0.02 per diluted share) for the quarter ended September 30, 2025, down from $34 million the prior quarter, while adjusted net income (non-GAAP) was $41 million ($0.29 per diluted share). The results reflect the July 25, 2025 acquisition of Penns Woods, which added $2.2 billion of assets and materially increased average balances, net interest income, and noninterest expense.

The business mechanics are clear: record total revenue of $168 million and a 3Q net interest margin of 3.65% came from higher earning assets and a shift to higher‑yield commercial loans; however, merger-related charges, a Day‑1 provision for credit losses of $20.6 million, and $31 million of merger and restructuring expenses depressed GAAP earnings. Key balance-sheet moves include average loans of $12,568,497, average deposits of $13,296,651, and increased borrowings.

Dependencies and risks are explicit: profit metrics hinge on successful integration and realization of the acquisition economics already reflected in adjusted results, while elevated provisions and classified loans (now $527 million, or 4.07% of total loans) increase near-term credit risk. Watch the announced quarterly cash dividend of $0.20 payable November 18, 2025 and the company’s note of branch openings and a Columbus market center scheduled for mid‑2026 as observable milestones. Monitor future quarterly GAAP vs. adjusted reconciliation, provision trends, and merger‑related expense run‑rate over the next 2 quarters.

Year to date EPS of $0.61 per diluted share, 15% growth from the prior year

Record total revenue of $168 million, 21% growth over prior year quarter

COLUMBUS, Ohio, Oct. 27, 2025 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (Nasdaq: NWBI) announced net income for the quarter ended September 30, 2025 of $3 million, or $0.02 per diluted share. This represents a decrease of $31 million compared to the prior quarter and same quarter last year, when net income was $34 million, or $0.26 per diluted share, in both periods. The annualized returns on average shareholders' equity and average assets for the quarter ended September 30, 2025 were 0.69% and 0.08% compared to 8.50% and 0.93% for the same quarter last year and 8.26% and 0.93% for the prior quarter. 

Adjusted net income (non-GAAP) for the quarter ended September 30, 2025 was $41 million, or $0.29, per diluted share, which increased by $3 million from $38 million, or $0.30, per diluted share, in the prior quarter. This increase was primarily driven by a $17 million increase in net interest income from the addition of Penns Woods which was partly offset by an increase in adjusted noninterest expense of $11 million. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended September 30, 2025 were 8.89% and 1.01% compared to 9.36% and 1.06% for the prior quarter.

On July 25, 2025, the Company completed its acquisition of Penns Woods Bancorp, Inc. ("Penns Woods") and its results of operations are included in the Company's consolidated results since the date of acquisition. Therefore, the Company's third quarter and year to date 2025 results reflect increased levels of average balances, net interest income, and noninterest expense compared to the prior quarter and 2024 results. After purchase accounting fair value adjustments, the acquisition added $2.2 billion of total assets, including $1.8 billion of loans, $164 million of investments, of which $82 million were immediately sold, as well as $2.0 billion of total liabilities, primarily consisting of $1.6 billion in deposits. The Company recorded preliminary goodwill of $61 million and core deposit intangibles of $48 million related to the acquisition.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on November 18, 2025 to shareholders of record as of November 6, 2025. This is the 124th 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, 2025, this represents an annualized dividend yield of approximately 6.5%.

Louis J. Torchio, President and CEO, Northwest Bancshares commented, "I am pleased with our first quarter of performance as a combined company. The team completed merger integration activities on time, while staying focused on executing our strategy, and delivering on our commitment to sustainable, responsible, and profitable growth. The benefits of the additional scale from the merger are already evident. We delivered a record $168 million in revenue for the quarter, more than 25% year over year average commercial C&I loan growth continuing our strategic re-balancing, and drove a strong 3Q net interest margin of 3.65% as we maintained our loan yield and low-cost, high-quality, stable funding base." 

"We are expanding our footprint through new branch openings in high growth markets, and have just broken ground on the first of three Columbus market financial centers scheduled for mid-2026 opening. We continue to enhance our capabilities, and provide personalized services and expertise to our customers and the growing number of communities we serve."

Balance Sheet Highlights

Dollars in thousands							Change 3Q25 vs.
	3Q25		2Q25		3Q24		2Q25		3Q24
Average loans receivable	$    12,568,497		11,248,954		11,223,602		11.7 %		12.0 %
Average investments	2,111,928		2,056,476		1,998,855		2.7 %		5.7 %
Average deposits	13,296,651		12,154,001		12,096,811		9.4 %		9.9 %
Average borrowed funds	347,357		208,342		220,677		66.7 %		57.4 %

• Average loans receivable increased $1.3 billion from the quarter ended September 30, 2024 and the quarter ended June 30, 2025. The increase from the prior year and the prior quarter was driven by the Penns Woods acquisition.
• Average investments grew $113 million from the quarter ended September 30, 2024 and $55 million from the quarter ended June 30, 2025. The growth in average investments was primarily due to the investments acquired as part of the Penns Woods acquisition during the third quarter.
• Average deposits grew $1.2 billion from the quarter ended September 30, 2024 and $1.1 billion from the quarter ended June 30, 2025. The growth in both periods was primarily driven by an increase in interest-bearing account balances primarily due to the addition of the Penns Woods deposit accounts.
• Average borrowings increased $127 million compared to the quarter end September 30, 2024 and $139 million compared to the quarter ended June 30, 2025. The increase in average borrowings from the prior year and prior quarter is attributable to the acquisition of long term borrowings from Penns Woods.

Income Statement Highlights

Dollars in thousands							Change 3Q25 vs.
	3Q25		2Q25		3Q24		2Q25		3Q24
Interest income	$   194,678		171,570		171,381		13.5 %		13.6 %
Interest expense	58,704		52,126		60,079		12.6 %		(2.3) %
Net interest income	$   135,974		119,444		111,302		13.8 %		22.2 %
Net interest margin	3.65 %		3.56 %		3.33 %

Compared to the quarter ended September 30, 2024, net interest income increased $25 million and net interest margin increased to 3.65% from 3.33% for the quarter ended September 30, 2024.  This increase in net interest income resulted primarily from:

• A $23 million increase in interest income that was the result of higher average yields coupled with increase in average earning assets. The increase in average earnings assets was driven by the Penns Woods acquisition during the third quarter. The average yield on loans improved to 5.63% for the quarter ended September 30, 2025 from 5.57% for the quarter ended September 30, 2024. This increase was driven by a loan mix shift towards higher yielding commercial loans along with the accretion of loan fair value marks from the acquisition of $3 million during the quarter.
• A $1 million decrease in interest expense was the result of a decline in the cost of deposits partially off by an increase in the average balance of interest-bearing liabilities. The cost of interest-bearing liabilities decreased to 2.13% for the quarter ended September 30, 2025 from 2.39% for the quarter ended September 30, 2024.

Compared to the quarter ended June 30, 2025, net interest income increased $17 million and net interest margin increased to 3.65% for the quarter ended September 30, 2025 from 3.56%. This increase in net interest income resulted from the following:

• A $23 million increase in interest income driven by growth in the average loan balances and an increase on investments yields compared to the prior quarter. The average yield on loans increased to 5.63% from 5.55% and average investment yields increased to 2.81% from 2.69% for the quarter ended June 30, 2025. The increase was primarily driven by the Penns Woods acquisition and the accretion of loan fair value marks coupled with a continued shift in loan mix towards higher yielding commercial loans.
• A $7 million increase in interest expense driven by higher interest expense on both deposits and borrowings from the Penns Woods acquisition. Average cost of interest-bearing deposits increased compared to the prior quarter to 1.99% from 1.97% for the quarter ended June 30, 2025 while average cost of borrowings declined to 3.84% from 3.94% for the quarter ended June 30, 2025.

Dollars in thousands							Change 3Q25 vs.
	3Q25		2Q25		3Q24		2Q25		3Q24
Provision for credit losses - loans	$        31,394		11,456		5,727		174.0 %		448.2 %
Provision for credit losses - unfunded commitments	(189)		(2,712)		(852)		(93.0) %		(77.8) %
Total provision for credit losses expense	$        31,205		8,744		4,875		256.9 %		540.1 %

The total provision for credit losses for the quarter ended September 30, 2025 was $31 million primarily driven by the Day 1 initial provision from the Penns Woods acquisition of $20.6 million. Excluding the Day 1 provision for credit losses from the acquisition, the provision for credit losses for the quarter ended September 30, 2025 was $10.5 million, which increased compared to the prior year and the prior quarter primarily due to an increase in net charge offs coupled with an increase due to individually assessed loans.

The Company saw an increase in classified loans to $527 million, or 4.07% of total loans, at September 30, 2025 from $320 million, or 2.83% of total loans, at September 30, 2024 and $518 million, or 4.57% of total loans, at June 30, 2025. This increase was driven by changes in our commercial real estate portfolio which increased $141 million from the prior year.  The increase from the prior quarter was primarily due to classified loans acquired in the Penns Woods acquisition which were partially offset by improvements in our legacy loan portfolio.  

Dollars in thousands							Change 3Q25 vs.
	3Q25		2Q25		3Q24		2Q25		3Q24
Noninterest income:
Gain/(loss) on sale of investments	$              36		—		—		NA		NA
Gain on sale of SBA loans	341		819		667		(58.4) %		(48.9) %
Service charges and fees	16,911		15,797		15,932		7.1 %		6.1 %
Trust and other financial services income	8,040		7,948		7,924		1.2 %		1.5 %
Gain on real estate owned, net	132		258		105		(48.8) %		25.7 %
Income from bank-owned life insurance	1,751		1,421		1,434		23.2 %		22.1 %
Mortgage banking income	1,003		1,075		744		(6.7) %		34.8 %
Other operating income	3,984		3,620		1,027		10.1 %		287.9 %
Total noninterest income	$        32,198		30,938		27,833		4.1 %		15.7 %

Noninterest income increased $4 million from the quarter ended September 30, 2024 driven by an increase in other operating income driven by a gain on equity method investments during the current quarter compared to a loss on equity method investments and the sale of a building during the prior year. Noninterest income increased by $1 million from the quarter ended June 30, 2025, due primarily to an increase in service charges and fees driven by deposit related fees based on customer activity partially related to the Penns Woods acquisition.

Dollars in thousands							Change 3Q25 vs.
	3Q25		2Q25		3Q24		2Q25		3Q24
Noninterest expense:
Personnel expense	$        63,014		55,213		56,186		14.1 %		12.2 %
Non-personnel expense	70,484		42,327		34,581		66.5 %		103.8 %
Total noninterest expense	$      133,498		97,540		90,767		36.9 %		47.1 %

Noninterest expense increased from the quarter ended September 30, 2024 due to a $7 million increase in personnel expenses driven by an increase in core compensation and benefits expense due to the addition of  Penns Woods employees coupled with an increase in performance based incentive compensation expense. Additionally, non-personnel expense increased by $36 million due to $31 million of merger and restructuring expenses in the current period and an increase of $1 million in amortization of intangible expense related to the acquisition. 

Compared to the quarter ended June 30, 2025, noninterest expense increased due to an increase in personnel expense of $8 million driven by the same factors discussed above. Non-personnel expense increased by $28 million due to an increase of $25 million in merger and restructuring expenses in the quarter ended September 30, 2025, an increase of $2 million in amortization of intangible expense related to the acquisition and an increase in processing expense of $2 million based on lower software spend in the prior quarter.

Dollars in thousands							Change 3Q25 vs.
	3Q25		2Q25		3Q24		2Q25		3Q24
Income before income taxes	$          3,469		44,098		43,493		(92.1) %		(92.0) %
Income tax expense	302		10,423		9,875		(97.1) %		(96.9) %
Net income	$          3,167		33,675		33,618		(90.6) %		(90.6) %

The provision for income taxes decreased by $10 million from the quarter ended September 30, 2024 and the quarter ended June 30, 2025 primarily due to the quarterly change in income before income taxes.

Net income decreased from the quarter ended September 30, 2024 and the quarter ended June 30, 2025 due to the factors discussed above.

Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank. Founded in 1896 Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of September 30, 2025, Northwest operated 151 full-service financial centers and ten free standing drive-up facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.'s common stock is listed on The Nasdaq Stock Market LLC ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed online at www.northwest.com. 

Investor Contact:	Michael Perry, Corporate Development & Strategy (814) 726-2140
Media Contact:	Ian Bailey, External Communications (380) 400-2423

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This release may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words "believe," "anticipate," "estimate," "expect," "project," "target," "goal" and similar expressions are intended to identify forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements include but are not limited to: statements of our goals, intentions and expectations; statements regarding our financial condition and results of operations, including statements related to our earnings outlook; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to the following: the possibility that any of the anticipated benefits of the merger with Penns Woods will not be realized or will not be realized within the expected time period; the effect of the merger on the combined company's customer and employee relationships and operating results; and other factors that may affect the results of operations and financial condition of the combined company; inflation and changes in the interest rate environment that reduce our margins, our loan origination, or the fair value of financial instruments; changes in asset quality, including increases in default rates on loans and higher levels of nonperforming loans and loan charge-offs generally; changes in laws, government regulations or supervision, examination and enforcement priorities affecting financial institutions, including as part of the regulatory reform agenda of the Trump administration, as well as changes in regulatory fees and capital requirements; changes in federal, state, or local tax laws and tax rates; general economic conditions, either nationally or in our market areas, that are different than expected, including inflationary or recessionary pressures or those related to changes in monetary, fiscal, regulatory and tariff policies of the U.S. government, including policies of the U.S. Department of Treasury and Board of Governors of the Federal Reserve System; adverse changes in the securities and credit markets; instability or breakdown in the financial services sector, including failures or rumors of failures of other depository institutions, along with actions taken by governmental agencies to address such turmoil; cyber-security concerns, including an interruption or breach in the security of our website or other information systems; technological changes that may be more difficult or expensive than expected; changes in liquidity, including the size and composition of our deposit portfolio, and the percentage of uninsured deposits in the portfolio; the ability of third-party providers to perform their obligations to us; competition among depository and other financial institutions, including with respect to deposit gathering, service charges and fees; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to manage our internal growth and our ability to successfully integrate acquired entities, businesses or branch offices; changes in consumer spending, borrowing and savings habits; our ability to continue to increase and manage our commercial and personal loans; possible impairments of securities held by us, including those issued by government entities and government sponsored enterprises; changes in the value of our goodwill or other intangible assets; the impact of the economy on our loan portfolio (including cash flow and collateral values), investment portfolio, customers and capital market activities; our ability to receive regulatory approvals for proposed transactions or new lines of business; the effects of any federal government shutdown or the inability of the federal government to manage debt limits; changes in the financial performance and/or condition of our borrowers; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Securities and Exchange Commission (the "SEC"), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board ("FASB") and other accounting standard setters; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the effect of global or national war, conflict, or terrorism; our ability to manage market risk, credit risk and operational risk; the disruption to local, regional, national and global economic activity caused by infectious disease outbreaks, and the significant impact that any such outbreaks may have on our growth, operations and earnings; the effects of natural disasters and extreme weather events; changes in our ability to continue to pay dividends, either at current rates or at all; our ability to retain key employees; and our compensation expense associated with equity allocated or awarded to our employees. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, expected or projected. These and other risk factors are more fully described in this presentation and in the Northwest Bancshares, Inc. (the "Company") Annual Report on Form 10-K for the year ended December 31, 2024 under the section entitled "Item 1A - Risk Factors," and from time to time in other filings made by the Company with the SEC. These forward-looking statements speak only at the date of the presentation. The Company expressly disclaims any obligation to publicly release any updates or revisions to reflect any change in the Company's expectations with regard to any change in events, conditions or circumstances on which any such statement is based.

Use of Non-GAAP Financial Measures

This release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses these "non-GAAP" measures in its analysis of the Company's performance. Management believes these non-GAAP financial measures allow for better comparability of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.  See the pages 9 and 10 of this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures where applicable.

 

Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) (dollars in thousands, except per share amounts)
	September 30, 2025		December 31, 2024		September 30, 2024
Assets
Cash and cash equivalents	$       278,817		288,378		226,883
Marketable securities available-for-sale (amortized cost of $1,405,959, $1,278,665 and $1,248,104, respectively)	1,270,880		1,108,944		1,111,868
Marketable securities held-to-maturity (fair value of $618,633, $637,948 and $672,641, respectively)	702,392		750,586		766,772
Total cash and cash equivalents and marketable securities	2,252,089		2,147,908		2,105,523
Loans held-for-sale	22,297		76,331		9,370
Residential mortgage loans	3,157,853		3,178,269		3,248,788
Home equity loans	1,520,893		1,149,396		1,167,202
Consumer loans	2,453,805		1,995,085		1,998,032
Commercial real estate loans	3,495,664		2,849,862		2,994,379
Commercial loans	2,312,718		2,007,402		1,886,787
Total loans receivable	12,940,933		11,180,014		11,295,188
Allowance for credit losses	(157,396)		(116,819)		(125,813)
Loans receivable, net	12,783,537		11,063,195		11,169,375
FHLB stock, at cost	33,349		21,006		21,223
Accrued interest receivable	55,549		46,356		46,678
Real estate owned, net	174		35		76
Premises and equipment, net	139,491		124,246		126,391
Bank-owned life insurance	303,115		253,137		255,324
Goodwill	442,010		380,997		380,997
Other intangible assets, net	47,924		2,837		3,363
Other assets	305,082		292,176		236,005
Total assets	$   16,384,617		14,408,224		14,354,325
Liabilities and shareholders' equity
Liabilities
Noninterest-bearing demand deposits	$     3,089,963		2,621,415		2,581,769
Interest-bearing demand deposits	2,898,350		2,666,504		2,676,779
Money market deposit accounts	2,462,979		2,007,739		1,956,747
Savings deposits	2,373,413		2,171,251		2,145,735
Time deposits	2,871,544		2,677,645		2,710,049
Total deposits	13,696,249		12,144,554		12,071,079
Borrowed funds	368,241		200,331		204,374
Subordinated debt	114,800		114,538		114,451
Junior subordinated debentures	130,028		129,834		129,769
Advances by borrowers for taxes and insurance	21,840		42,042		24,700
Accrued interest payable	10,555		6,935		15,125
Other liabilities	183,560		173,134		203,502
Total liabilities	14,525,273		12,811,368		12,763,000
Shareholders' equity
Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares issued	—		—		—
Common stock, $0.01 par value: 500,000,000 shares authorized, 146,097,057, 127,508,003 and 127,400,199 shares issued and outstanding, respectively	1,461		1,275		1,274
Additional paid-in capital	1,275,444		1,033,385		1,030,384
Retained earnings	669,701		673,110		665,845
Accumulated other comprehensive loss	(87,262)		(110,914)		(106,178)
Total shareholders' equity	1,859,344		1,596,856		1,591,325
Total liabilities and shareholders' equity	$   16,384,617		14,408,224		14,354,325
Equity to assets	11.35 %		11.08 %		11.09 %
Tangible common equity to tangible assets*	8.62 %		8.65 %		8.64 %
Book value per share	$           12.73		12.52		12.49
Tangible book value per share*	$             9.37		9.51		9.47
Closing market price per share	$           12.39		13.19		13.38
Full time equivalent employees	2,190		1,956		1,975
Number of banking offices	161		141		141

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

 

Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts)
	Quarter ended
	September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024
Interest income:
Loans receivable	$      177,723		154,914		164,638		155,838		156,413
Mortgage-backed securities	12,668		12,154		11,730		11,515		10,908
Taxable investment securities	1,183		999		933		910		842
Tax-free investment securities	752		512		512		515		512
FHLB stock dividends	652		318		366		392		394
Interest-earning deposits	1,700		2,673		2,416		1,552		2,312
Total interest income	194,678		171,570		180,595		170,722		171,381
Interest expense:
Deposits	51,880		46,826		47,325		50,854		54,198
Borrowed funds	6,824		5,300		5,452		5,671		5,881
Total interest expense	58,704		52,126		52,777		56,525		60,079
Net interest income	135,974		119,444		127,818		114,197		111,302
Provision for credit losses - loans	31,394		11,456		8,256		15,549		5,727
Provision for credit losses - unfunded commitments	(189)		(2,712)		(345)		1,016		(852)
Net interest income after provision for credit losses	104,769		110,700		119,907		97,632		106,427
Noninterest income:
Gain on sale of investments	36		—		—		—		—
Gain on sale of SBA loans	341		819		1,238		822		667
Service charges and fees	16,911		15,797		14,987		15,975		15,932
Trust and other financial services income	8,040		7,948		7,910		7,485		7,924
Gain on real estate owned, net	132		258		84		238		105
Income from bank-owned life insurance	1,751		1,421		1,331		2,020		1,434
Mortgage banking income	1,003		1,075		696		224		744
Other operating income	3,984		3,620		2,109		13,299		1,027
Total noninterest income	32,198		30,938		28,355		40,063		27,833
Noninterest expense:
Compensation and employee benefits	63,014		55,213		54,540		53,198		56,186
Premises and occupancy costs	7,707		7,122		8,400		7,263		7,115
Office operations	3,495		2,910		2,977		3,036		2,811
Collections expense	776		838		328		905		474
Processing expenses	15,072		12,973		13,990		15,361		14,570
Marketing expenses	1,932		3,018		1,880		2,327		2,004
Federal deposit insurance premiums	3,361		2,296		2,328		2,949		2,763
Professional services	3,010		3,990		2,756		3,788		3,302
Amortization of intangible assets	1,974		436		504		526		590
Merger, asset disposition and restructuring expense	31,260		6,244		1,123		2,850		43
Other expenses	1,897		2,500		2,911		3,123		909
Total noninterest expense	133,498		97,540		91,737		95,326		90,767
Income before income taxes	3,469		44,098		56,525		42,369		43,493
Income tax expense	302		10,423		13,067		9,619		9,875
Net income	$          3,167		33,675		43,458		32,750		33,618
Basic earnings per share	$           0.02		0.26		0.34		0.26		0.26
Diluted earnings per share	$           0.02		0.26		0.34		0.26		0.26
Weighted average common shares outstanding - diluted	141,175,516		128,114,509		128,299,013		127,968,910		127,714,511
Annualized return on average equity	0.69 %		8.26 %		10.90 %		8.20 %		8.50 %
Annualized return on average assets	0.08 %		0.93 %		1.22 %		0.91 %		0.93 %
Annualized return on average tangible common equity*	0.90 %		10.78 %		14.29 %		10.81 %		11.26 %
Efficiency ratio	79.38 %		64.86 %		58.74 %		61.80 %		65.24 %
Efficiency ratio, excluding certain items**	59.62 %		60.42 %		57.70 %		59.61 %		64.78 %

*	Excludes goodwill and other intangible assets (non-GAAP).  See reconciliation of non-GAAP financial measures for additional information relating to these items.
**	Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.

 

Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts)
	Nine months ended September 30,
	2025		2024
Interest income:
Loans receivable	$                         497,275		459,938
Mortgage-backed securities	36,552		28,278
Taxable investment securities	3,115		2,364
Tax-free investment securities	1,776		1,460
FHLB stock dividends	1,336		1,499
Interest-earning deposits	6,789		4,935
Total interest income	546,843		498,474
Interest expense:
Deposits	146,031		154,638
Borrowed funds	17,576		22,455
Total interest expense	163,607		177,093
Net interest income	383,236		321,381
Provision for credit losses - loans	51,106		12,130
Provision for credit losses - unfunded commitments	(3,246)		(4,190)
Net interest income after provision for credit losses	335,376		313,441
Noninterest income:
Gain/(loss) on sale of investments	36		(39,413)
Gain on sale of SBA loans	2,398		2,997
Service charges and fees	47,695		46,982
Trust and other financial services income	23,898		22,617
Gain on real estate owned, net	474		649
Income from bank-owned life insurance	4,503		4,307
Mortgage banking income	2,774		2,097
Other operating income	9,713		6,711
Total noninterest income	91,491		46,947
Noninterest expense:
Compensation and employee benefits	172,767		161,257
Premises and occupancy costs	23,229		22,206
Office operations	9,382		9,397
Collections expense	1,942		1,216
Processing expenses	42,035		43,990
Marketing expenses	6,830		6,563
Federal deposit insurance premiums	7,985		8,651
Professional services	9,756		11,095
Amortization of intangible assets	2,914		1,926
Merger, asset disposition and restructuring expense	38,627		2,913
Other expenses	7,308		3,997
Total noninterest expense	322,775		273,211
Income before income taxes	104,092		87,177
Income tax expense	23,792		19,649
Net income	$                           80,300		67,528
Basic earnings per share	$                               0.61		0.53
Diluted earnings per share	$                               0.61		0.53
Weighted average common shares outstanding - diluted	132,700,517		127,569,014
Annualized return on average equity	6.36 %		5.80 %
Annualized return on average assets	0.72 %		0.63 %
Annualized return on tangible common equity*	8.29 %		7.71 %
Efficiency ratio	67.99 %		74.18 %
Efficiency ratio, excluding certain items**	59.24 %		65.82 %

*	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 Reconciliation of Non-GAAP Financial Measures (Unaudited) * (dollars in thousands, except per share amounts)
	Quarter ended						Nine months ended September 30,
	September 30, 2025		June 30, 2025		September 30, 2024		2025		2024
Reconciliation of net income to adjusted net income:
Net income (GAAP)	$          3,167		33,675		33,618		80,300		67,528
Non-GAAP adjustments
Add: merger, asset disposition and restructuring expense	31,260		6,244		43		38,627		2,913
Add: loss on the sale of investments	—		—		—		—		39,413
Add: CECL Day 1 non-PCD and unfunded provision expense	20,664		—		—		20,664		—
Less: tax benefit of non-GAAP adjustments	(14,539)		(1,748)		(12)		(16,601)		(11,851)
Adjusted net income (non-GAAP)	$        40,552		38,171		33,649		122,990		98,003
Diluted earnings per share (GAAP)	$           0.02		0.26		0.26		0.61		0.53
Diluted adjusted earnings per share (non-GAAP)	$           0.29		0.30		0.26		0.93		0.77
Average equity	$   1,809,395		1,635,966		1,572,897		1,688,030		1,554,800
Average assets	15,942,440		14,468,197		14,351,669		14,943,347		14,406,092
Annualized return on average equity (GAAP)	0.69 %		8.26 %		8.50 %		6.36 %		5.80 %
Annualized return on average assets (GAAP)	0.08 %		0.93 %		0.93 %		0.72 %		0.63 %
Annualized return on average equity, excluding merger, asset disposition and restructuring expense, loss on the sale of investments and CECL Day 1 non-PCD and unfunded provision expense, net of tax (non-GAAP)	8.89 %		9.36 %		8.51 %		9.74 %		8.42 %
Annualized return on average assets, excluding merger, asset disposition and restructuring expense, loss on sale of investments and CECL Day 1 non-PCD and unfunded provision expense, net of tax (non-GAAP)	1.01 %		1.06 %		0.93 %		1.10 %		0.91 %

 

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, 2025		December 31, 2024		September 30, 2024
Tangible common equity to assets
Total shareholders' equity	$     1,859,344		1,596,856		1,591,325
Less: goodwill and intangible assets	(489,934)		(383,834)		(384,360)
Tangible common equity	$     1,369,410		1,213,022		1,206,965
Total assets	$   16,384,617		14,408,224		14,354,325
Less: goodwill and intangible assets	(489,934)		(383,834)		(384,360)
Tangible assets	$   15,894,683		14,024,390		13,969,965
Tangible common equity to tangible assets	8.62 %		8.65 %		8.64 %
Tangible book value per share
Tangible common equity	$     1,369,410		1,213,022		1,206,965
Common shares outstanding	146,097,057		127,508,003		127,400,199
Tangible book value per share	9.37		9.51		9.47

 

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, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		2025		2024
Annualized return on average tangible common equity
Net income	$          3,167		33,675		43,458		32,750		33,618		80,300		67,528
Average shareholders' equity	1,809,395		1,635,966		1,616,611		1,589,228		1,572,897		1,688,030		1,554,800
Less: average goodwill and intangible assets	(409,875)		(383,152)		(383,649)		(384,178)		(384,730)		(392,321)		(385,375)
Average tangible common equity	$   1,399,520		1,252,814		1,232,962		1,205,050		1,188,167		1,295,709		1,169,425
Annualized return on average tangible common equity	0.90 %		10.78 %		14.29 %		10.81 %		11.26 %		8.29 %		7.71 %
Efficiency ratio, excluding loss on the sale of investments, amortization and merger, asset disposition and restructuring expenses
Non-interest expense	$      133,498		97,540		91,737		95,326		90,767		322,775		273,211
Less: amortization expense	(1,974)		(436)		(504)		(526)		(590)		(2,914)		(1,926)
Less: merger, asset disposition and restructuring expenses	(31,260)		(6,244)		(1,123)		(2,850)		(43)		(38,627)		(2,913)
Non-interest expense, excluding amortization and merger, assets disposition and restructuring expenses	$      100,264		90,860		90,110		91,950		90,134		281,234		268,372
Net interest income	$      135,974		119,444		127,818		114,197		111,302		383,236		321,381
Non-interest income	32,198		30,938		28,355		40,063		27,833		91,491		46,947
Add: loss on the sale of investments	—		—		—		—		—		—		39,413
Net interest income plus non-interest income, excluding loss on sale of investments	$      168,172		150,382		156,173		154,260		139,135		474,727		407,741
Efficiency ratio, excluding loss on sale of investments, amortization and merger, asset disposition and restructuring expenses	59.62 %		60.42 %		57.70 %		59.61 %		64.78 %		59.24 %		65.82 %

*

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, amortization expense and loss on sale of investments. 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 per depositor are not insured by the Federal Deposit Insurance Corporation. The following table provides details regarding the Company's uninsured deposits portfolio:
	As of September 30, 2025
	Balance		Percent of total deposits		Number of relationships
Uninsured deposits per the Call Report (1)	$                      3,746,638		27.4 %		6,277
Less intercompany deposit accounts	1,321,881		9.7 %		12
Less collateralized deposit accounts	480,761		3.5 %		253
Uninsured deposits excluding intercompany and collateralized accounts	$                      1,943,996		14.2 %		6,012

(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 $39.0 million, or 0.28% of total deposits, as of September 30, 2025. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $198 million, or 1.45% of total deposits, as of September 30, 2025. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $323,353 as of September 30, 2025.

 

The following table provides additional details for the Company's deposit portfolio:
	As of September 30, 2025
	Balance		Percent of total deposits		Number of accounts
Personal noninterest bearing demand deposits	$              1,618,533		11.8 %		314,147
Business noninterest bearing demand deposits	1,471,430		10.7 %		48,395
Personal interest-bearing demand deposits	1,354,562		9.9 %		55,431
Business interest-bearing demand deposits	1,543,788		11.3 %		9,236
Personal money market deposits	1,685,343		12.3 %		27,005
Business money market deposits	777,636		5.7 %		3,237
Savings deposits	2,373,413		17.3 %		188,460
Time deposits	2,871,544		21.0 %		82,932
Total deposits	$            13,696,249		100.0 %		728,843

 

Our average deposit account balance as of September 30, 2025 was $18,792. The Company's insured cash sweep deposit balance was $653 million as of September 30, 2025.

 

Northwest Bancshares, Inc. and Subsidiaries Regulatory Capital Requirements (Unaudited) (dollars in thousands)
	At September 30, 2025
	Actual (1)				Minimum capital requirements (2)				Well capitalized requirements
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk weighted assets)
Northwest Bancshares, Inc.	$     1,874,975		15.50 %		$     1,269,941		10.50 %		$     1,209,468		10.00 %
Northwest Bank	1,677,386		13.88 %		1,268,588		10.50 %		1,208,179		10.00 %
Tier 1 capital (to risk weighted assets)
Northwest Bancshares, Inc.	1,482,638		12.26 %		1,028,047		8.50 %		725,681		6.00 %
Northwest Bank	1,526,048		12.63 %		1,026,952		8.50 %		966,543		8.00 %
Common equity tier 1 capital (to risk weighted assets)
Northwest Bancshares, Inc.	1,482,638		12.26 %		846,627		7.00 %		N/A		N/A
Northwest Bank	1,526,048		12.63 %		845,725		7.00 %		785,316		6.50 %
Tier 1 capital (leverage)  (to average assets)
Northwest Bancshares, Inc.	1,482,638		9.47 %		626,057		4.00 %		N/A		N/A
Northwest Bank	1,526,048		9.41 %		648,658		4.00 %		810,822		5.00 %

(1)	September 30, 2025 figures are estimated.
(2)	Amounts and ratios include the capital conservation buffer of 2.5%, which does not apply to Tier 1 capital to average assets (leverage ratio). For further information related to the capital conservation buffer, see "Item 1. Business - Supervision and Regulation" of our 2024 Annual Report on Form 10-K.

 

Northwest Bancshares, Inc. and Subsidiaries Marketable Securities (Unaudited) (dollars in thousands)
		September 30, 2025
Marketable securities available-for-sale		Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses		Fair value		Weighted average duration
Debt issued by the U.S. government and agencies:
Due after five years through ten years		$                1,762		11		(18)		1,755		3.20
Due after ten years		42,581		—		(8,165)		34,416		5.89
Debt issued by government sponsored enterprises:
Due after one year through five years		1,055		6		(3)		1,058		1.74
Due after five years through ten years		996		7		—		1,003		0.65
Municipal securities:
Due in one year or less		4,774		6		—		4,779		0.16
Due after one year through five years		12,096		117		(1)		12,212		2.30
Due after five years through ten years		24,655		312		(1,405)		23,562		6.76
Due after ten years		53,172		191		(7,843)		45,520		9.77
Corporate debt issues:
Due in one year or less		1,421		3		—		1,424		0.28
Due after one year through five years		10,893		59		(79)		10,873		3.79
Due after five years through ten years		26,315		1,151		—		27,466		4.02
Mortgage-backed agency securities:
Fixed rate pass-through		297,215		3,099		(11,877)		288,437		6.48
Variable rate pass-through		3,156		59		(2)		3,213		3.53
Fixed rate agency CMOs		879,499		2,428		(113,019)		768,909		4.32
Variable rate agency CMOs		46,369		102		(218)		46,253		5.97
Total mortgage-backed agency securities		1,226,239		5,688		(125,116)		1,106,811		4.95
Total marketable securities available-for-sale		$         1,405,959		7,551		(142,630)		1,270,880		5.10
Marketable securities held-to-maturity
Government sponsored
Due in one year or less		$              16,478		—		(226)		16,252		0.48
Due after one year through five years		107,987		—		(9,406)		98,581		3.22
Mortgage-backed agency securities:
Fixed rate pass-through		122,022		—		(13,870)		108,152		4.17
Variable rate pass-through		328		3		—		331		3.34
Fixed rate agency CMOs		455,049		—		(60,258)		394,791		5.42
Variable rate agency CMOs		528		—		(2)		526		4.39
Total mortgage-backed agency securities		577,927		3		(74,130)		503,800		5.01
Total marketable securities held-to-maturity		$            702,392		3		(83,762)		618,633		4.63

 

Northwest Bancshares, Inc. and Subsidiaries Asset Quality (Unaudited) (dollars in thousands)
	September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024
Nonaccrual loans:
Residential mortgage loans	$         11,497		8,482		7,025		6,951		7,541
Home equity loans	6,979		3,507		3,004		3,332		4,041
Consumer loans	5,898		4,418		5,201		5,028		5,205
Commercial real estate loans	82,580		62,091		31,763		36,967		43,471
Commercial loans	21,371		23,896		11,757		9,123		16,570
Total nonaccrual loans	128,325		102,394		58,750		61,401		76,828
Loans 90 days past due and still accruing	701		493		603		656		1,045
Nonperforming loans	129,026		102,887		59,353		62,057		77,873
Real estate owned, net	174		48		80		35		76
Other nonperforming assets (1)	—		—		16,102		16,102		—
Nonperforming assets	$       129,200		102,935		75,535		78,194		77,949
Nonperforming loans to total loans	1.00 %		0.91 %		0.53 %		0.56 %		0.69 %
Nonperforming assets to total assets	0.79 %		0.71 %		0.52 %		0.54 %		0.54 %
Allowance for credit losses to total loans	1.22 %		1.14 %		1.09 %		1.04 %		1.11 %
Allowance for credit losses to nonperforming loans	121.99 %		125.53 %		206.91 %		188.24 %		161.56 %

(1)  Other nonperforming assets includes nonaccrual loans held-for-sale.

 

Northwest Bancshares, Inc. and Subsidiaries Loans by Credit Quality Indicators (Unaudited) (dollars in thousands)
At September 30, 2025		Pass		Special mention *		Substandard **		Doubtful		Loss		Loans receivable
Personal Banking:
Residential mortgage loans		$       3,146,355		—		11,498		—		—		3,157,853
Home equity loans		1,513,914		—		6,979		—		—		1,520,893
Consumer loans		2,447,208		—		6,597		—		—		2,453,805
Total Personal Banking		7,107,477		—		25,074		—		—		7,132,551
Commercial Banking:
Commercial real estate loans		2,912,166		171,005		412,493		—		—		3,495,664
Commercial loans		2,141,236		82,009		89,473		—		—		2,312,718
Total Commercial Banking		5,053,402		253,014		501,966		—		—		5,808,382
Total loans		$     12,160,879		253,014		527,040		—		—		12,940,933
At June 30, 2025
Personal Banking:
Residential mortgage loans		$       3,039,809		—		12,317		—		—		3,052,126
Home equity loans		1,153,808		—		3,712		—		—		1,157,520
Consumer loans		2,206,363		—		4,912		—		—		2,211,275
Total Personal Banking		6,399,980		—		20,941		—		—		6,420,921
Commercial Banking:
Commercial real estate loans		2,266,057		112,852		403,495		—		—		2,782,404
Commercial loans		1,956,751		87,951		93,797		—		—		2,138,499
Total Commercial Banking		4,222,808		200,803		497,292		—		—		4,920,903
Total loans		$     10,622,788		200,803		518,233		—		—		11,341,824
At March 31, 2025
Personal Banking:
Residential mortgage loans		$       3,110,770		—		10,877		—		—		3,121,647
Home equity loans		1,138,367		—		3,210		—		—		1,141,577
Consumer loans		2,075,719		—		5,750		—		—		2,081,469
Total Personal Banking		6,324,856		—		19,837		—		—		6,344,693
Commercial Banking:
Commercial real estate loans		2,497,722		86,779		208,233		—		—		2,792,734
Commercial loans		1,964,699		63,249		51,070		—		—		2,079,018
Total Commercial Banking		4,462,421		150,028		259,303		—		—		4,871,752
Total loans		$     10,787,277		150,028		279,140		—		—		11,216,445
At December 31, 2024
Personal Banking:
Residential mortgage loans		$       3,167,447		—		10,822		—		—		3,178,269
Home equity loans		1,145,856		—		3,540		—		—		1,149,396
Consumer loans		1,989,479		—		5,606		—		—		1,995,085
Total Personal Banking		6,302,782		—		19,968		—		—		6,322,750
Commercial Banking:
Commercial real estate loans		2,571,915		72,601		205,346		—		—		2,849,862
Commercial loans		1,923,382		37,063		46,957		—		—		2,007,402
Total Commercial Banking		4,495,297		109,664		252,303		—		—		4,857,264
Total loans		$     10,798,079		109,664		272,271		—		—		11,180,014
At September 30, 2024
Personal Banking:
Residential mortgage loans		$       3,237,357		—		11,431		—		—		3,248,788
Home equity loans		1,162,951		—		4,251		—		—		1,167,202
Consumer loans		1,992,110		—		5,922		—		—		1,998,032
Total Personal Banking		6,392,418		—		21,604		—		—		6,414,022
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		$     10,835,838		139,407		319,943		—		—		11,295,188

*	Includes $41.0 million, $4.0 million, $4.7 million, $2.7 million, and $2.9 million of acquired loans at September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024, respectively.
**	Includes $96.9 million, $19.2 million, $18.0 million, $19.8 million, and $26.0 million of acquired loans at September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024, respectively.

 

Northwest Bancshares, Inc. and Subsidiaries Loan Delinquency (Unaudited) (dollars in thousands)
	September 30, 2025		*		June 30, 2025		*		March 31, 2025		*		December 31, 2024		*		September 30, 2024		*
Loans delinquent 30 days to 59 days:
Residential mortgage loans	$            1,639		0.1 %		$         561		— %		$          32,840		1.0 %		$           28,690		0.9 %		$               685		— %
Home equity loans	4,644		0.3 %		4,664		0.4 %		3,882		0.3 %		5,365		0.5 %		3,907		0.3 %
Consumer loans	12,257		0.5 %		9,174		0.4 %		8,792		0.4 %		11,102		0.6 %		10,777		0.5 %
Commercial real estate loans	14,600		0.4 %		4,585		0.2 %		8,536		0.3 %		5,215		0.2 %		5,919		0.2 %
Commercial loans	9,974		0.4 %		5,569		0.3 %		6,841		0.3 %		5,632		0.3 %		3,260		0.2 %
Total loans delinquent 30 days to 59 days	$           43,114		0.3 %		$    24,553		0.2 %		$          60,891		0.5 %		$           56,004		0.5 %		$           24,548		0.2 %
Loans delinquent 60 days to 89 days:
Residential mortgage loans	$            7,917		0.3 %		$      8,958		0.3 %		$            3,074		0.1 %		$           10,112		0.3 %		$            9,027		0.3 %
Home equity loans	2,671		0.2 %		985		0.1 %		1,290		0.1 %		1,434		0.1 %		882		0.1 %
Consumer loans	3,691		0.2 %		3,233		0.1 %		2,808		0.1 %		3,640		0.2 %		3,600		0.2 %
Commercial real estate loans	1,575		— %		13,240		0.5 %		2,001		0.1 %		915		— %		7,643		0.3 %
Commercial loans	1,915		0.1 %		2,031		0.1 %		2,676		0.1 %		1,726		0.1 %		753		— %
Total loans delinquent 60 days to 89 days	$           17,769		0.1 %		$    28,447		0.3 %		$          11,849		0.1 %		$           17,827		0.2 %		$           21,905		0.2 %
Loans delinquent 90 days or more:
Residential mortgage loans	$            9,427		0.3 %		$      6,905		0.2 %		$            4,005		0.1 %		$             4,931		0.2 %		$            5,370		0.2 %
Home equity loans	2,963		0.2 %		1,879		0.2 %		1,893		0.2 %		2,250		0.2 %		2,558		0.2 %
Consumer loans	4,865		0.2 %		3,486		0.2 %		4,026		0.2 %		3,967		0.2 %		3,983		0.2 %
Commercial real estate loans	56,453		1.6 %		41,875		1.5 %		23,433		0.8 %		7,702		0.3 %		6,167		0.2 %
Commercial loans	9,490		0.4 %		10,433		0.5 %		5,994		0.3 %		7,335		0.4 %		14,484		0.8 %
Total loans delinquent 90 days or more	$           83,198		0.6 %		$    64,578		0.6 %		$          39,351		0.3 %		$           26,185		0.2 %		$           32,562		0.3 %
Total loans delinquent	$         144,081		1.1 %		$  117,578		1.0 %		$        112,091		1.0 %		$         100,016		0.9 %		$           79,015		0.7 %

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

 

Northwest Bancshares, Inc. and Subsidiaries Allowance for Credit Losses (Unaudited) (dollars in thousands)
	Quarter ended
	September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024
Beginning balance	$      129,159		122,809		116,819		125,813		125,070
Initial allowance on loans purchased with credit deterioration	6,029		—		—		—		—
Provision	31,394		11,456		8,256		15,549		5,727
Charge-offs residential mortgage	(137)		(273)		(588)		(176)		(255)
Charge-offs home equity	(336)		(413)		(273)		(197)		(890)
Charge-offs consumer	(3,994)		(3,331)		(3,805)		(4,044)		(3,560)
Charge-offs commercial real estate	(4,312)		(293)		(116)		(13,997)		(475)
Charge-offs commercial	(2,395)		(3,597)		(571)		(10,400)		(1,580)
Recoveries	1,988		2,801		3,087		4,271		1,776
Ending balance	$      157,396		129,159		122,809		116,819		125,813
Net charge-offs to average loans, annualized	0.29 %		0.18 %		0.08 %		0.87 %		0.18 %

 

	Nine months ended September 30,
	2025		2024
Beginning balance	$                    116,819		125,243
Initial allowance on loans purchased with credit deterioration	6,029		—
Provision	51,106		12,130
Charge-offs residential mortgage	(998)		(669)
Charge-offs home equity	(1,022)		(1,539)
Charge-offs consumer	(11,130)		(10,694)
Charge-offs commercial real estate	(4,721)		(1,324)
Charge-offs commercial	(6,563)		(4,062)
Recoveries	7,876		6,728
Ending balance	$                    157,396		125,813
Net charge-offs to average loans, annualized	0.19 %		0.14 %

 

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, 2025						June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024
	Average balance		Interest		Avg. yield/ cost		Average balance		Interest		Avg. yield/ cost		Average balance		Interest		Avg. yield/ cost		Average balance		Interest		Avg. yield/ cost		Average balance		Interest		Avg. yield/ cost
Assets:
Interest-earning assets:
Residential mortgage loans	$  3,160,008		31,386		3.97 %		$  3,091,324		29,978		3.88 %		$  3,155,738		30,394		3.85 %		$  3,215,596		31,107		3.87 %		$  3,286,316		31,537		3.84 %
Home equity loans	1,421,717		21,080		5.88 %		1,145,655		16,265		5.69 %		1,139,728		16,164		5.75 %		1,154,456		16,801		5.79 %		1,166,866		17,296		5.90 %
Consumer loans	2,330,173		32,729		5.57 %		2,073,103		28,648		5.54 %		1,948,230		26,273		5.47 %		1,918,356		26,293		5.45 %		1,955,988		26,034		5.29 %
Commercial real estate loans	3,377,740		51,761		6.00 %		2,836,757		43,457		6.06 %		2,879,607		56,508		7.85 %		2,983,946		46,933		6.15 %		2,995,032		47,473		6.31 %
Commercial loans	2,278,859		41,519		7.13 %		2,102,115		37,287		7.02 %		2,053,213		36,012		7.02 %		1,932,427		35,404		7.17 %		1,819,400		34,837		7.62 %
Total loans receivable (a) (b) (d)	12,568,497		178,475		5.63 %		11,248,954		155,635		5.55 %		11,176,516		165,351		6.00 %		11,204,781		156,538		5.56 %		11,223,602		157,177		5.57 %
Mortgage-backed securities (c)	1,810,209		12,668		2.80 %		1,790,423		12,154		2.72 %		1,773,402		11,730		2.65 %		1,769,151		11,514		2.60 %		1,735,728		10,908		2.51 %
Investment securities (c) (d)	301,719		2,153		2.85 %		266,053		1,668		2.51 %		263,825		1,599		2.43 %		264,840		1,575		2.38 %		263,127		1,504		2.29 %
FHLB stock, at cost	30,434		652		8.51 %		17,838		318		7.15 %		20,862		366		7.11 %		21,237		392		7.35 %		20,849		394		7.51 %
Other interest-earning deposits	164,131		1,700		4.05 %		220,416		2,673		4.85 %		243,412		2,416		3.97 %		132,273		1,554		4.60 %		173,770		2,312		5.29 %
Total interest-earning assets	14,874,990		195,648		5.22 %		13,543,684		172,448		5.11 %		13,478,017		181,462		5.46 %		13,392,282		171,573		5.10 %		13,417,076		172,295		5.11 %
Noninterest-earning assets (e)	1,067,450						924,513						924,466						930,582						934,593
Total assets	$   15,942,440						$   14,468,197						$   14,402,483						$   14,322,864						$   14,351,669
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings deposits	$  2,343,137		6,679		1.13 %		$  2,212,175		6,521		1.18 %		$  2,194,305		6,452		1.19 %		$  2,152,955		6,549		1.21 %		$  2,151,933		6,680		1.23 %
Interest-bearing demand deposit	2,782,369		8,258		1.18 %		2,609,887		7,192		1.11 %		2,593,228		7,063		1.10 %		2,636,279		7,894		1.19 %		2,567,682		7,452		1.15 %
Money market deposit accounts	2,392,748		11,785		1.95 %		2,121,088		9,658		1.83 %		2,082,948		9,306		1.81 %		1,980,769		8,880		1.78 %		1,966,684		9,170		1.85 %
Time deposits	2,818,526		25,158		3.54 %		2,599,254		23,455		3.62 %		2,629,388		24,504		3.78 %		2,671,343		27,531		4.10 %		2,830,737		30,896		4.34 %
Total interesting bearing deposits (g)	10,336,780		51,880		1.99 %		9,542,404		46,826		1.97 %		9,499,869		47,325		2.02 %		9,441,346		50,854		2.14 %		9,517,036		54,198		2.27 %
Borrowed funds (f)	347,357		3,366		3.84 %		208,342		2,046		3.94 %		224,122		2,206		3.99 %		222,506		2,246		4.02 %		220,677		2,266		4.09 %
Subordinated debt	114,745		1,335		4.65 %		114,661		1,148		4.00 %		114,576		1,148		4.01 %		114,488		1,148		4.01 %		114,396		1,148		4.01 %
Junior subordinated debentures	129,986		2,123		6.39 %		129,921		2,106		6.41 %		129,856		2,098		6.46 %		129,791		2,277		6.87 %		129,727		2,467		7.56 %
Total interest-bearing liabilities	10,928,868		58,704		2.13 %		9,995,328		52,126		2.09 %		9,968,423		52,777		2.15 %		9,908,131		56,525		2.27 %		9,981,836		60,079		2.39 %
Noninterest-bearing demand deposits (g)	2,959,871						2,611,597						2,588,502						2,587,071						2,579,775
Noninterest-bearing liabilities	244,306						225,306						228,947						238,434						217,161
Total liabilities	14,133,045						12,832,231						12,785,872						12,733,636						12,778,772
Shareholders' equity	1,809,395						1,635,966						1,616,611						1,589,228						1,572,897
Total liabilities and shareholders' equity	$   15,942,440						$   14,468,197						$   14,402,483						$   14,322,864						$   14,351,669
Net interest income/Interest rate spread FTE			136,944		3.09 %				120,322		3.02 %				128,685		3.31 %				115,048		2.83 %				112,216		2.72 %
Net interest-earning assets/Net interest margin FTE	$  3,946,122				3.65 %		$  3,548,356				3.56 %		$  3,509,594				3.87 %		$  3,484,151				3.42 %		$  3,435,240				3.33 %
Tax equivalent adjustment (d)			970						878						867						851						914
Net interest income, GAAP basis			135,974						119,444						127,818						114,197						111,302
Ratio of interest-earning assets to interest- bearing liabilities	1.36X						1.36X						1.35X						1.35X						1.34X

(a)	Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
(b)	Interest income includes accretion/amortization of deferred loan fees/expenses, which was not material.
(c)	Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
(d)	Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis.
(e)	Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
(f)	Average balances include FHLB borrowings and collateralized borrowings.
(g)	Average cost of total deposits were 1.55%, 1.55%, 1.59%, 1.68%, and 1.78%, 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,
	2025						2024
	Average balance		Interest		Avg. yield/ cost (h)		Average balance		Interest		Avg. yield/ cost (h)
Assets
Interest-earning assets:
Residential mortgage loans	$     3,135,705		91,758		3.90 %		$     3,340,332		96,392		3.85 %
Home equity loans	1,236,733		53,509		5.78 %		1,185,145		51,893		5.85 %
Consumer loans	2,118,568		87,650		5.53 %		2,012,461		77,401		5.14 %
Commercial real estate loans	3,033,193		151,726		6.60 %		3,005,966		136,556		6.07 %
Commercial loans	2,145,555		114,818		7.06 %		1,768,325		99,923		7.55 %
Loans receivable (a) (b) (d)	11,669,754		499,461		5.72 %		11,312,229		462,165		5.46 %
Mortgage-backed securities (c)	1,791,479		36,552		2.72 %		1,729,064		28,278		2.18 %
Investment securities (c) (d)	277,338		5,420		2.61 %		294,598		4,251		1.92 %
FHLB stock, at cost	23,080		1,336		7.74 %		26,195		1,499		7.64 %
Other interest-earning deposits	209,320		6,789		4.28 %		124,037		4,935		5.31 %
Total interest-earning assets	13,970,971		549,558		5.26 %		13,486,123		501,128		4.96 %
Noninterest-earning assets (e)	972,376						919,969
Total assets	$   14,943,347						$   14,406,092
Liabilities and shareholders' equity
Interest-bearing liabilities:
Savings deposits	$     2,250,418		19,653		1.17 %		$     2,139,461		17,673		1.10 %
Interest-bearing demand deposits	2,662,521		22,513		1.13 %		2,554,172		19,501		1.02 %
Money market deposit accounts	2,200,063		30,748		1.87 %		1,962,019		25,684		1.75 %
Time deposits	2,683,081		73,117		3.64 %		2,787,306		91,780		4.40 %
Total interesting bearing deposits (g)	9,796,083		146,031		1.99 %		9,442,958		154,638		2.19 %
Borrowed funds (f)	260,392		7,618		3.91 %		337,427		11,636		4.61 %
Subordinated debt	114,661		3,631		4.22 %		114,310		3,444		4.02 %
Junior subordinated debentures	129,922		6,327		6.42 %		129,662		7,375		7.60 %
Total interest-bearing liabilities	10,301,058		163,607		2.12 %		10,024,357		177,093		2.36 %
Noninterest-bearing demand deposits (g)	2,721,350						2,581,018
Noninterest-bearing liabilities	232,909						245,917
Total liabilities	13,255,317						12,851,292
Shareholders' equity	1,688,030						1,554,800
Total liabilities and shareholders' equity	$   14,943,347						$   14,406,092
Net interest income/Interest rate spread			385,951		3.14 %				324,035		2.60 %
Net interest-earning assets/Net interest margin	$     3,669,913				3.69 %		$     3,461,766				3.21 %
Tax equivalent adjustment (d)			2,715						2,654
Net interest income, GAAP basis			383,236						321,381
Ratio of interest-earning assets to interest-bearing liabilities	1.36X						1.35X

(a)	Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
(b)	Interest income includes accretion/amortization of deferred loan fees/expenses, which were not material.
(c)	Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
(d)	Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis.
(e)	Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
(f)	Average balances include FHLB borrowings and collateralized borrowings.
(g)	Average cost of deposits were 1.56% and 1.72%, respectively.

 

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SOURCE Northwest Bancshares, Inc.

FAQ

What did NWBI report for GAAP net income in 3Q25?

NWBI reported $3 million GAAP net income, or $0.02 per diluted share for 3Q25.

How did Northwest's acquisition of Penns Woods affect 3Q25 results (NWBI)?

The July 25, 2025 acquisition added $2.2 billion of assets (including $1.8 billion loans) and increased NII and expenses in 3Q25.

What was NWBI's adjusted (non‑GAAP) earnings per share in 3Q25?

Adjusted net income was $41 million, or $0.29 per diluted share in 3Q25.

Why did NWBI's provision for credit losses rise in 3Q25?

Total provision was $31 million, driven primarily by a $20.6 million Day‑1 provision from the Penns Woods acquisition.

What dividend did NWBI declare and when is it payable?

The Board declared a quarterly cash dividend of $0.20 per share, payable Nov 18, 2025 to shareholders of record Nov 6, 2025.

How did NWBI's net interest margin perform in 3Q25?

NWBI reported a net interest margin of 3.65% for 3Q25.