[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) [Q2 2025 Performance Summary](index=1&type=section&id=Q2%202025%20Performance%20Summary) Northwest Bancshares reported Q2 2025 net income of **$34 million**, or **$0.26 per diluted share**, a significant increase year-over-year but a decrease from the prior quarter, while maintaining a **3.56%** net interest margin and declaring a **$0.20** quarterly dividend after completing the Penns Woods merger Q2 2025 Key Financial Results | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $34 million | $43 million | $5 million | | Diluted EPS | $0.26 | $0.34 | $0.04 | | Adjusted Net Income (non-GAAP) | $38 million | $44 million | N/A | | Adjusted Diluted EPS (non-GAAP) | $0.30 | $0.35 | N/A | | Net Interest Margin | 3.56% | 3.87% | 3.20% | - The Board of Directors declared a quarterly cash dividend of **$0.20 per share**, marking the **123rd consecutive quarterly dividend**, representing an annualized dividend yield of approximately **6.3%** as of June 30, 2025[4](index=4&type=chunk) - Strategic focus is on optimizing operations and financial performance following the successful completion and systems conversion of the Penns Woods merger, with the company continuing to evaluate acquisition opportunities while also expanding its footprint through new branch openings[2](index=2&type=chunk)[6](index=6&type=chunk) [Detailed Financial Analysis](index=3&type=section&id=Detailed%20Financial%20Analysis) [Balance Sheet Analysis](index=3&type=section&id=Balance%20Sheet%20Analysis) Average loans receivable saw a slight quarterly increase of **0.6%** but a decrease of **1.1%** year-over-year, driven by a strategic shift from personal banking to commercial portfolios, while average deposits grew modestly and average borrowed funds significantly decreased by **35.5%** from the prior year due to strategic pay-downs Average Balance Sheet Highlights (Q2 2025) | Dollars in thousands | Q2 2025 | Change vs. 1Q25 | Change vs. 2Q24 | | :--- | :--- | :--- | :--- | | Average loans receivable | $11,248,954 | 0.6% | (1.1)% | | Average deposits | $12,154,001 | 0.5% | 0.6% | | Average borrowed funds | $208,342 | (7.0)% | (35.5)% | - The decrease in average loans YoY was driven by a **$265 million** decline in the personal banking portfolio, with cash flows reinvested into the commercial portfolio, which grew by **$145 million**, and the commercial and industrial portfolio specifically grew by **$332 million**[11](index=11&type=chunk) [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased by **11.8%** year-over-year to **$119.4 million**, with the net interest margin expanding to **3.56%** from **3.20%**, primarily due to higher loan yields and lower deposit costs, despite a **6.6%** quarterly decrease influenced by a prior quarter's non-accrual loan interest recovery Net Interest Income and Margin Performance | Dollars in thousands | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net interest income | $119,444 | $127,818 | $106,841 | | Net interest margin | 3.56% | 3.87% | 3.20% | - The YoY increase in NII was driven by a **$5 million** increase in interest income from higher loan yields and an **$8 million** decrease in interest expense due to lower cost of deposits and reduced borrowings[12](index=12&type=chunk) - The QoQ decrease in NII was primarily caused by a **$9 million** drop in interest income, stemming from a large **$13.1 million** interest recovery on a non-accrual commercial loan in Q1 2025, and excluding this recovery, the prior quarter's net interest margin would have been **3.48%**[10](index=10&type=chunk) [Provision for Credit Losses](index=4&type=section&id=Provision%20for%20Credit%20Losses) The total provision for credit losses was **$8.7 million** for Q2 2025, a significant increase from the prior year, primarily driven by downgrades and individual assessments within the commercial real estate portfolio, leading to classified loans increasing substantially to **$518 million** or **4.57%** of total loans Provision for Credit Losses Expense | Dollars in thousands | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Provision for credit losses - loans | $11,456 | $8,256 | $2,169 | | Provision for credit losses - unfunded commitments | $(2,712) | $(345) | $(2,539) | | **Total provision for credit losses expense** | **$8,744** | **$7,911** | **$(370)** | - Classified loans rose to **$518 million** (**4.57%** of total loans) at June 30, 2025, up from **$279 million** (**2.49%** of total loans) at March 31, 2025, with this increase driven by a **$195 million** rise in classified commercial real estate loans[15](index=15&type=chunk) [Noninterest Income and Expense](index=4&type=section&id=Noninterest%20Income%20and%20Expense) Total noninterest income was **$30.9 million**, a significant increase from a loss of **$8.8 million** in Q2 2024 due to a prior-year investment securities sale loss, while noninterest expense increased **5.5%** year-over-year to **$97.5 million** driven by higher personnel and merger-related costs - Noninterest income increased by **$40 million** YoY, mainly because Q2 2024 included a **$39 million** loss on the sale of investment securities, and excluding this item, noninterest income was flat YoY[16](index=16&type=chunk) - Noninterest expense rose by **$5.1 million** YoY to **$97.5 million**, due to a **$2 million** increase in personnel expenses and a **$3 million** increase in non-personnel expenses, which included merger and restructuring costs[17](index=17&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Financial Condition](index=6&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) As of June 30, 2025, total assets stood at **$14.49 billion**, with net loans receivable at **$11.21 billion** and total deposits at **$12.20 billion**, contributing to a rise in total shareholders' equity to **$1.64 billion** and tangible book value per share to **$9.85** Key Balance Sheet Items (as of June 30, 2025) | Dollars in thousands | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $14,485,107 | $14,408,224 | $14,385,553 | | Loans receivable, net | $11,212,665 | $11,063,195 | $11,229,294 | | Total Deposits | $12,201,029 | $12,144,554 | $12,087,379 | | Total Shareholders' Equity | $1,642,068 | $1,596,856 | $1,556,598 | | Tangible book value per share* | $9.85 | $9.51 | $9.20 | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) For Q2 2025, the company generated **$119.4 million** in net interest income, resulting in **$33.7 million** net income, while for the six months ended June 30, 2025, net income was **$77.1 million**, more than double the **$33.9 million** earned in the same period of 2024 Income Statement Summary (Quarter ended June 30, 2025) | Dollars in thousands | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net interest income | $119,444 | $127,818 | $106,841 | | Total noninterest income/(loss) | $30,938 | $28,355 | $(8,849) | | Total noninterest expense | $97,540 | $91,737 | $92,420 | | Net income | $33,675 | $43,458 | $4,747 | | Diluted earnings per share | $0.26 | $0.34 | $0.04 | Income Statement Summary (Six months ended June 30) | Dollars in thousands | 2025 | 2024 | | :--- | :--- | :--- | | Net interest income | $247,262 | $210,079 | | Total noninterest income | $59,293 | $19,114 | | Net income | $77,133 | $33,910 | | Diluted earnings per share | $0.60 | $0.27 | [Non-GAAP Financial Measures Reconciliation](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [Reconciliation of Net Income and Key Ratios](index=9&type=section&id=Reconciliation%20of%20Net%20Income%20and%20Key%20Ratios) For Q2 2025, GAAP net income of **$33.7 million** was adjusted for **$6.2 million** in merger-related expenses, resulting in an adjusted net income of **$38.2 million** and an adjusted diluted EPS of **$0.30**, providing a clearer view of operating performance Reconciliation of Net Income to Adjusted Net Income (Q2 2025) | Dollars in thousands | Q2 2025 | | :--- | :--- | | Net income (GAAP) | $33,675 | | Add: merger, asset disposition and restructuring expense | $6,244 | | Less: tax benefit of non-GAAP adjustments | $(1,748) | | **Adjusted net income (non-GAAP)** | **$38,171** | [Supplementary Financial Information](index=11&type=section&id=Supplementary%20Financial%20Information) [Deposit and Capital Analysis](index=11&type=section&id=Deposit%20and%20Capital%20Analysis) As of June 30, 2025, uninsured deposits, excluding intercompany and collateralized accounts, were **$1.55 billion**, representing **12.7%** of total deposits, with the company's regulatory capital ratios remaining well above 'well capitalized' requirements, including a Common Equity Tier 1 (CET1) ratio of **12.84%** for the holding company - Uninsured deposits per the Call Report were **$3.27 billion** (**26.8%** of total deposits), but after excluding intercompany and collateralized accounts, the adjusted uninsured balance is **$1.55 billion**, or **12.7%** of total deposits[39](index=39&type=chunk) Regulatory Capital Ratios (June 30, 2025) | Ratio (Northwest Bancshares, Inc.) | Actual | Minimum Requirement | Well Capitalized | | :--- | :--- | :--- | :--- | | Total capital (to risk weighted assets) | 16.32% | 10.50% | 10.00% | | Tier 1 capital (to risk weighted assets) | 14.01% | 8.50% | 6.00% | | Common equity tier 1 capital | 12.84% | 7.00% | N/A | [Asset Quality Analysis](index=14&type=section&id=Asset%20Quality%20Analysis) Asset quality metrics showed some deterioration during the quarter, with nonperforming loans increasing to **0.91%** of total loans from **0.53%** in the prior quarter, driven by an increase in nonaccrual commercial real estate and commercial loans, and substandard loans nearly doubling [Nonperforming Assets (NPAs)](index=14&type=section&id=Nonperforming%20Assets%20%28NPAs%29) Nonperforming Assets Trend | Dollars in thousands | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total nonaccrual loans | $102,394 | $58,750 | $102,159 | | Nonperforming loans | $102,887 | $59,353 | $104,670 | | Nonperforming assets | $102,935 | $75,535 | $104,744 | | Nonperforming loans to total loans | 0.91% | 0.53% | 0.92% | [Loan Portfolio Credit Quality](index=15&type=section&id=Loan%20Portfolio%20Credit%20Quality) - Substandard loans increased significantly to **$518.2 million** as of June 30, 2025, up from **$279.1 million** at March 31, 2025, with the increase concentrated in the Commercial Banking segment, particularly in commercial real estate loans[51](index=51&type=chunk) [Allowance for Credit Losses (ACL)](index=17&type=section&id=Allowance%20for%20Credit%20Losses%20%28ACL%29) ACL Roll-Forward (Quarter ended June 30, 2025) | Dollars in thousands | Amount | | :--- | :--- | | Beginning balance | $122,809 | | Provision | $11,456 | | Total Charge-offs | $(7,907) | | Recoveries | $2,801 | | **Ending balance** | **$129,159** | - The allowance for credit losses to total loans stood at **1.14%** at the end of Q2 2025, up from **1.09%** in the prior quarter[49](index=49&type=chunk) [Average Balance Sheet and Net Interest Margin Analysis](index=18&type=section&id=Average%20Balance%20Sheet%20and%20Net%20Interest%20Margin%20Analysis) [Quarterly and YTD Average Balance Sheet](index=18&type=section&id=Quarterly%20and%20YTD%20Average%20Balance%20Sheet) The average yield on interest-earning assets for Q2 2025 was **5.11%** (FTE), down from Q1 2025 but up from Q2 2024, while the average cost of interest-bearing liabilities decreased to **2.09%** year-over-year, resulting in a net interest margin of **3.56%** for the quarter and **3.72%** for the first six months of 2025 Quarterly Net Interest Margin Analysis (FTE) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Avg. Yield on Earning Assets | 5.11% | 5.46% | 4.98% | | Avg. Cost of Interest-Bearing Liabilities | 2.09% | 2.15% | 2.40% | | Net Interest Spread | 3.02% | 3.31% | 2.58% | | Net Interest Margin | 3.56% | 3.87% | 3.20% | Six-Month Net Interest Margin Analysis (FTE) | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Avg. Yield on Earning Assets | 5.28% | 4.89% | | Avg. Cost of Interest-Bearing Liabilities | 2.12% | 2.34% | | Net Interest Spread | 3.16% | 2.55% | | Net Interest Margin | 3.72% | 3.15% |

Core Viewpoint - Northwest Bancshares, Inc. reported strong financial performance for the second quarter of 2025, with significant revenue growth and successful integration of the Penns Woods merger, despite a decrease in net income compared to the previous quarter [1][4][5]. Financial Performance - Total revenue increased by 54% year-over-year, with net interest income rising by 12% compared to the prior year quarter [1]. - Adjusted net income for 2Q25 was $38 million, or $0.30 per diluted share, a decrease from $44 million, or $0.35 per diluted share in the prior quarter [2]. - Net income for the quarter ended June 30, 2025, was $34 million, or $0.26 per diluted share, up from $5 million, or $0.04 per diluted share in the same quarter last year, but down from $43 million, or $0.34 per diluted share in the prior quarter [1][2][14]. Interest Income and Margin - Net interest income for 2Q25 was $119.4 million, down 6.6% from the previous quarter but up 11.8% from the same quarter last year [6][21]. - The net interest margin stood at 3.56%, a decrease from 3.87% in the previous quarter but an increase from 3.20% in the same quarter last year [6][21]. Loan and Deposit Growth - Commercial C&I lending showed strong momentum with a 19% growth over the last year [1]. - Average loans receivable decreased by $120 million from the previous year, primarily due to a decline in the personal banking portfolio, while the commercial banking portfolio grew by $145 million [7]. - Average deposits increased by $68 million year-over-year, driven by higher balances in money market and interest-bearing accounts [7]. Noninterest Income and Expenses - Noninterest income grew by 9% over the prior quarter, totaling $30.9 million, with notable increases in service charges and fees [11][21]. - Total noninterest expense increased to $97.5 million, reflecting higher personnel and non-personnel expenses due to merger-related costs [12][13]. Credit Quality - The provision for credit losses was $9 million, primarily due to downgrades in the commercial real estate portfolio [9]. - Classified loans increased to $518 million, representing 4.57% of total loans, up from 2.26% a year ago [10]. Dividends - The Board of Directors declared a quarterly cash dividend of $0.20 per share, marking the 123rd consecutive quarter of dividend payments, with an annualized yield of approximately 6.3% [3].

Core Points - The merger between Northwest Bancshares, Inc. and Penns Woods Bancorp, Inc. has been completed as of July 25, 2025, enhancing Northwest's banking presence in Pennsylvania [1][2] - Richard A. Grafmyre, the CEO of Penns Woods, has been appointed to the Board of Directors of Northwest and Northwest Bank following the merger [2] - The merger adds 21 branch locations to Northwest, bringing the total to 151 financial centers across Pennsylvania, New York, Ohio, and Indiana [2][3] - The former Jersey Shore State Bank and Luzerne Bank locations have been rebranded to Northwest Bank after a successful customer and data conversion [3] Company Overview - Northwest Bancshares, Inc. is headquartered in Columbus, Ohio, and operates as a full-service financial institution offering a range of banking products and services [7] - The company was founded in 1896 and currently operates 151 full-service financial centers and eleven drive-up facilities [7] - Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market under the symbol NWBI [7]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Northwest Bancshares (NWBI) - NWBI currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance [3] Price Performance - Over the past week, NWBI shares increased by 5.14%, outperforming the Zacks Financial - Savings and Loan industry, which rose by 2.97% [5] - In a longer timeframe, NWBI's monthly price change is 7.84%, compared to the industry's 3.23% [5] - Over the last three months, NWBI shares have risen by 19.08%, and by 15.41% over the past year, while the S&P 500 has increased by 15.13% and 13.62%, respectively [6] Trading Volume - NWBI's average 20-day trading volume is 593,881 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, two earnings estimates for NWBI have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $1.17 to $1.24 [9] - For the next fiscal year, two estimates have also moved upwards without any downward revisions [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, NWBI is positioned as a promising investment opportunity with a Momentum Score of A [11]

Core Points - Northwest Bancshares, Inc. will host a conference call to discuss its second quarter 2025 financial results on July 30, 2025, at 8:30 a.m. EDT [1] - Financial results will be released after market close on July 29, 2025 [1] Conference Call / Webcast Information - The live audio webcast and presentation slides will be available in the Investor Relations section of the company's website [2] - The public can register for the conference call through a provided link and will receive instructions for calendar event download and email reminders [2] Additional Information - Northwest Bancshares, Inc. is headquartered in Columbus, Ohio, and operates as the bank holding company for Northwest Bank, which was founded in 1896 [4] - The bank offers a full range of business and personal banking products, employee benefits, and wealth management services, with 131 full-service financial centers and eleven drive-up facilities across Pennsylvania, New York, Ohio, and Indiana [4] - The company's common stock is listed on the NASDAQ Global Select Market under the ticker "NWBI" [4]

Core Viewpoint - Northwest Bancshares (NWBI) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Investor Sentiment - The upgrade reflects an improvement in Northwest Bancshares' underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. - Over the past three months, the Zacks Consensus Estimate for Northwest Bancshares has increased by 15%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, highlighting their potential for market-beating returns [9][10]. - Stocks rated Zacks Rank 1 have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of the rating system [7].

Leadership Transition - Northwest Bancshares, Inc. announced a change in its board of directors as part of a leadership transition, with Timothy B. Fannin stepping down as Board Chair and being succeeded by Vice Chair Timothy M. Hunter [1][2] - Timothy B. Fannin has been with the board since 2013 and served as Non-Executive Chairman since 2022, while Timothy M. Hunter joined the board in 2015 and was appointed Vice Chair in 2023 [2] Company Progress and Strategy - The company is on track to become a Top 100 US bank by assets following its merger with Penns Woods, expected to close in late July [3] - Fannin highlighted the company's significant progress on its strategic growth plan, including the largest acquisition in its history, and emphasized the importance of transitioning board leadership at this time [3] - Hunter expressed his commitment to continue the company's progress and capitalize on opportunities for sustainable, responsible, and profitable growth [3] Executive Experience - Timothy M. Hunter has extensive business experience, having served as President and CEO of McInnes Rolled Rings from 2003 to 2024, and has held various positions on business and philanthropic boards [3] - Hunter is a CPA and has a background with Ernst & Young, holding a bachelor's degree in accounting from Villanova University [3] Company Overview - Northwest Bancshares, Inc. is headquartered in Columbus, Ohio, and is the bank holding company for Northwest Bank, which was founded in 1896 [4] - The bank offers a complete line of business and personal banking products, as well as employee benefits and wealth management services, operating 130 full-service financial centers and eleven drive-up facilities across Pennsylvania, New York, Ohio, and Indiana [4]

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section details the company's unaudited consolidated financial statements and management's analysis of financial performance [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, income, and cash flow statements, reflecting financial growth [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to $14.45 billion, driven by growth in cash and net loans, with deposits and shareholders' equity also rising Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $14,453,727 | $14,408,224 | $45,503 | 0.3% | | Loans receivable, net | $11,093,636 | $11,063,195 | $30,441 | 0.3% | | Total Deposits | $12,174,156 | $12,144,554 | $29,602 | 0.2% | | Total Liabilities | $12,824,772 | $12,811,368 | $13,404 | 0.1% | | Total Shareholders' Equity | $1,628,955 | $1,596,856 | $32,099 | 2.0% | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net income significantly increased to $43.5 million for Q1 2025, primarily driven by a substantial rise in net interest income Quarterly Income Statement Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $127,818 | $103,238 | $24,580 | 23.8% | | Provision for credit losses - loans | $8,256 | $4,234 | $4,022 | 95.0% | | Noninterest Income | $28,355 | $27,963 | $392 | 1.4% | | Noninterest Expense | $91,737 | $90,024 | $1,713 | 1.9% | | Net Income | $43,458 | $29,163 | $14,295 | 49.0% | | Diluted EPS | $0.34 | $0.23 | $0.11 | 47.8% | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased, while investing activities used less cash, resulting in higher cash and equivalents Cash Flow Summary (in thousands) | Activity | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $107,612 | $70,701 | | Net cash used in investing activities | ($45,936) | ($143,587) | | Net cash provided by financing activities | $3,149 | $69,945 | | **Net increase/(decrease) in cash** | **$64,825** | **($2,941)** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes disclose accounting policies, financial statement line items, and significant subsequent events, including merger approval - The company's marketable securities portfolio, totaling **$1.9 billion**, consists of available-for-sale (**$1.15 billion**) and held-to-maturity (**$0.74 billion**) securities. Unrealized losses on these securities are primarily attributed to changes in the interest rate environment, not credit quality deterioration[21](index=21&type=chunk)[22](index=22&type=chunk)[24](index=24&type=chunk) - The total loan portfolio was **$11.2 billion**, with Personal Banking loans at **$6.3 billion** and Commercial Banking loans at **$4.9 billion**. The allowance for credit losses (ACL) stood at **$122.8 million** as of March 31, 2025[28](index=28&type=chunk) - The company utilizes various derivative instruments, primarily interest rate swaps, to manage interest rate risk and for customer accommodation. As of March 31, 2025, the notional amount of derivatives designated as hedging instruments was **$175 million**[101](index=101&type=chunk)[102](index=102&type=chunk)[108](index=108&type=chunk) - All regulatory and shareholder approvals for the merger with Penns Woods Bancorp, Inc. have been received. The merger is expected to close in the **third quarter of 2025**[120](index=120&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and operating results, highlighting net income growth, asset expansion, and strong capital adequacy [Comparison of Financial Condition](index=45&type=section&id=Comparison%20of%20Financial%20Condition) Total assets increased to **$14.5 billion**, driven by growth in cash and gross loans, with deposits and equity also rising - Total assets grew by **$46 million** to **$14.5 billion**, primarily from increased cash and loans[132](index=132&type=chunk) - Gross loans increased by **$36 million**, with the commercial and industrial (C&I) portfolio growing by **$72 million (4%)** since December 31, 2024, reflecting success in new commercial lending verticals[135](index=135&type=chunk) - Total deposits rose by **$30 million**, with a shift from time deposits (down **$81 million**) to money market (up **$117 million**) and savings accounts (up **$51 million**)[137](index=137&type=chunk) - As of March 31, 2025, uninsured deposits, excluding intercompany and collateralized accounts, were **$1.54 billion**, representing **12.7%** of total deposits[140](index=140&type=chunk) [Regulatory Capital](index=46&type=section&id=Regulatory%20Capital) The company and Northwest Bank continue to exceed all regulatory capital requirements, maintaining a 'well-capitalized' status Regulatory Capital Ratios (Company) | Ratio | March 31, 2025 | Minimum Requirement (with buffer) | Well Capitalized Requirement | | :--- | :--- | :--- | :--- | | CET1 Capital Ratio | 12.94% | 7.00% | N/A | | Tier 1 Capital Ratio | 14.13% | 8.50% | 6.00% | | Total Capital Ratio | 16.46% | 10.50% | 10.00% | | Tier 1 Leverage Ratio | 10.51% | 4.00% | N/A | [Nonperforming Assets](index=48&type=section&id=Nonperforming%20Assets) Total nonperforming assets decreased to **$75.5 million**, with nonaccrual loans also declining, indicating improved asset quality Nonperforming Assets (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total nonperforming loans | $59,353 | $62,057 | | Other nonperforming assets | $16,102 | $16,102 | | **Total nonperforming assets** | **$75,535** | **$78,194** | | Nonaccrual loans to total loans | 0.52% | 0.55% | [Comparison of Operating Results for Q1 2025 and Q1 2024](index=51&type=section&id=Comparison%20of%20Operating%20Results) Net income for Q1 2025 significantly increased by **49%**, driven by a substantial rise in net interest income and improved return on equity - Net income increased by **$14 million (49%)** YoY, with diluted EPS rising from **$0.23** to **$0.34**[168](index=168&type=chunk) - Net interest income (FTE) increased by **$25 million**, and net interest margin (FTE) expanded by **77 basis points** to **3.87%**, driven by higher earning asset yields and an interest recovery of **$13.1 million** on a non-accrual loan payoff[172](index=172&type=chunk)[174](index=174&type=chunk) - The provision for credit losses increased by **$4 million** from Q1 2024, reflecting growth in the commercial loan portfolio and changes in economic forecasts[186](index=186&type=chunk) - Noninterest expense rose by **$2 million (2%)**, mainly due to a **$3 million** increase in compensation and benefits, partially offset by a **$1 million** decrease in professional services[197](index=197&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk through simulations, projecting the impact of rate changes on net income and equity value Simulated Impact of Interest Rate Shifts over 12 Months | Parallel Shift in Interest Rates | Projected % Change in Net Income | Projected % Change in Market Value of Equity | | :--- | :--- | :--- | | +300 bps | (7.9)% | (14.8)% | | +200 bps | (4.9)% | (9.7)% | | +100 bps | (2.0)% | (4.6)% | | -100 bps | (2.5)% | 2.7% | | -200 bps | (14.4)% | 2.1% | | -300 bps | (20.6)% | 2.6% | [Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[209](index=209&type=chunk) - No **material changes** were made to the internal controls over financial reporting during the quarter[210](index=210&type=chunk) [PART II OTHER INFORMATION](index=61&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information, including legal proceedings, risk factors, equity sales, and other disclosures [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company does not anticipate any material adverse effects from pending or threatened legal proceedings on its financial statements - The company does not expect any pending legal proceedings to have a **material adverse effect** on its financial statements[211](index=211&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) No material updates or additions to the previously disclosed risk factors were reported for the quarter - No **material changes** to risk factors were reported for the quarter[212](index=212&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased under the company's stock repurchase program during the quarter, with shares remaining available - No shares of common stock were repurchased during the quarter ended March 31, 2025[213](index=213&type=chunk) - There are **2,261,130 shares** remaining that can be purchased under the current stock repurchase program, which has no expiration date[213](index=213&type=chunk) [Other Information](index=62&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading arrangements during the first quarter of 2025 - No directors or officers adopted or terminated any **Rule 10b5-1 trading arrangements** during the three months ended March 31, 2025[216](index=216&type=chunk) [Exhibits](index=63&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files

Core Viewpoint - Northwest Bancshares (NWBI) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook that may continue to drive stock performance [1][10]. Estimate Revisions - The upward trend in earnings estimate revisions reflects increasing analyst optimism regarding Northwest Bancshares' earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, the earnings estimate is $0.28 per share, representing a 3.7% increase from the previous year, with a notable 11.84% rise in consensus estimates over the last 30 days [6]. - For the full year, the earnings estimate stands at $1.17 per share, marking a 12.5% increase from the prior year, with a consensus estimate increase of 8.72% due to three upward revisions and no negative changes [7][8]. Zacks Rank - Northwest Bancshares currently holds a Zacks Rank 2 (Buy), supported by favorable estimate revisions, which historically correlate with strong stock performance [9]. - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500, indicating a positive investment outlook for Northwest Bancshares [9]. Stock Performance - The stock has experienced a 7.7% gain over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects, suggesting it may be a timely addition to investment portfolios [10].

Group 1 - The Q1 regional bank earnings are being closely monitored as they provide insights into local economies [1] - Key metrics indicate little cause for concern despite market selloff [1] - The company has identified areas for investment during the market correction [1] Group 2 - A money-back guarantee is offered to ensure customer satisfaction with the service [3] - The company promotes a proven track record of successful investment ideas [3]