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]

Financial Data and Key Metrics Changes - The company reported revenue of $156 million and net income of $43 million, an increase of $14 million or 48% compared to the same quarter last year, with earnings per diluted share rising to $0.34 from $0.23 [5][6] - The net interest margin improved by 45 basis points from the prior quarter to 3.87%, marking the fourth consecutive quarter of margin improvement [11][12] - Non-interest income decreased by $11.7 million due to prior quarter transactions, but overall revenue grew by 19% compared to Q1 2024 [12][16] Business Line Data and Key Metrics Changes - Average commercial loans increased by $121 million or 6.2% compared to the fourth quarter, reflecting a strategic shift towards commercial lending [13] - The consumer non-brokered average deposits increased by $68 million quarter over quarter, while brokered deposits decreased by $8 million [14] - The loan yields increased by 44 basis points to 6%, benefiting from an interest recovery [13] Market Data and Key Metrics Changes - Average total deposits increased by $60 million quarter over quarter and grew by 1.7% or $200 million compared to Q1 2024 [14] - The cost of deposits decreased by 9 basis points quarter over quarter, with the current cost standing at 1.59% [14][15] - The overall coverage ratio is at 1.09%, reflecting prudent risk management amid market concerns [19] Company Strategy and Development Direction - The company continues to focus on sustainable, responsible, and profitable growth, with a strategic shift towards commercial lending and enhancing retail banking [6][7] - Integration activities for the merger with Pennswoods Bancorp are underway, expected to close by late July, which will position the company among the top 100 banks in the U.S. by asset size [8][9] - The company is also exploring de novo branch opportunities, particularly in Columbus and Indianapolis [7] Management's Comments on Operating Environment and Future Outlook - The current operating environment is characterized by significant market volatility and economic uncertainty, but the company remains focused on managing controllable factors [10][11] - The company expects to maintain its margin performance at or above the high end of its range, depending on future Fed rate cuts [22] - Loan growth will depend on the broader economic environment, which remains unpredictable [22] Other Important Information - The company declared a quarterly dividend of $0.20 per share to shareholders of record as of May 8, 2025 [6] - Non-interest expense declined by 3.8% compared to the prior quarter, driven by disciplined expense management [12][18] Q&A Session Summary Question: Margin guidance and future expectations - Management indicated a core margin of 3.48% and expects to be at the high end of the range, with potential impacts from future rate cuts [30] Question: Deposit growth drivers - The company is transitioning from CDs to more liquid products, with new money market rates around 3.75% [34][38] Question: Credit trends and tariff impacts - Management noted minimal current impact from tariffs, with exposure to manufacturing, transportation, and hospitality sectors being monitored [45] Question: Commercial loan build-out and market share - The company continues to take share in newer verticals and has seen stronger pipelines compared to the previous year [46][54] Question: Competitive landscape and yield trends - New commercial loan yields are at 7.26%, with roll-off yields at 6.76%, indicating competitive pressure [61] Question: Future M&A activity - Management remains open to future M&A opportunities but is currently focused on internal efficiencies and execution [81]