Core Viewpoint - Northwest Bancshares reported revenues of $97.99 million for the quarter ended June 2024, which was a 26.75% miss compared to the Zacks Consensus Estimate and a decline from $138.35 million year-over-year [1] Financial Performance - The company is expected to post quarterly earnings of $0.41 per share, reflecting a year-over-year decrease of 14.6%, with the consensus EPS estimate revised 2.4% lower in the last 30 days [3] - The actual quarterly earnings reported were $0.27 per share, surpassing the Zacks Consensus Estimate of $0.23 per share, consistent with earnings of $0.27 per share from the previous year [10] - The company has exceeded consensus EPS estimates two times over the last four quarters [14] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $136.36 million, and for the current fiscal year, it is $0.92 on revenues of $539.76 million [6] - The stock has gained approximately 6.7% since the beginning of the year, compared to a 16.7% increase in the S&P 500 [11] - The Zacks Rank for Northwest Bancshares is currently 3 (Hold), indicating expected performance in line with the market in the near future [12] Industry Context - The Financial - Savings and Loan industry is currently ranked in the bottom 31% of over 250 Zacks industries, suggesting that the outlook for the industry could significantly impact the stock's performance [15]

Financial Performance - Net income for the quarter ended June 30, 2024, was $4,747 thousand, a decline of 83.7% compared to $33,044 thousand in the same quarter last year[17]. - Net income for the quarter ended June 30, 2024, was $29,163 million, slightly up from $33,044 million in the same quarter last year, showing a decrease of 11.7%[34]. - Adjusted net operating income (non-GAAP) for the quarter was $34,503 thousand, up from $29,851 thousand year-over-year[38]. - Net income for the quarter ended June 30, 2024, was $5 million, a decrease of $28 million compared to the same quarter last year[66]. Interest Income and Expense - Total interest income for the quarter ended June 30, 2024, was $166,854 million, an increase from $143,996 million in the same quarter last year, representing a growth of 15.8%[34]. - Total interest expense for the quarter ended June 30, 2024, was $60,013 million, compared to $35,447 million in the same quarter last year, reflecting an increase of 69.4%[34]. - Net interest income was reported at $107,724 million with an interest rate spread of 2.58%[62]. - The net interest margin expanded by 10 basis points to 3.20%[68]. Deposits and Loans - Total deposits increased to $11,979,902, up from $11,789,882 in the previous quarter, representing a growth of 1.6%[5]. - Total loans receivable decreased slightly to $11,354,364 thousand from $11,414,809 thousand, a decline of 0.5%[31]. - Total deposits as of June 30, 2024, amounted to $12,087,379, with an average deposit account balance of $17,000[44]. - Average loans receivable increased by $303 million year-over-year, reaching $11,368,749, driven by a $631 million growth in the commercial banking portfolio[46]. Non-Interest Income and Expenses - Noninterest income showed a loss of $8,849 thousand for the quarter, primarily due to a $39,413 thousand loss on the sale of investment securities[14]. - Total noninterest expense for the quarter ended June 30, 2024, was $92,420 million, up from $85,858 million in the same quarter last year, indicating an increase of 7.5%[34]. - Noninterest expense, excluding amortization and merger, asset disposition and restructuring expenses was $89,870 for the latest quarter, up from $88,368 in the previous quarter[1]. Asset Quality - Total nonaccrual loans increased to $102,159 thousand as of June 30, 2024, up from $95,060 thousand in the previous quarter, representing an increase of 1.15%[11]. - Nonperforming loans to total loans ratio rose to 0.92% from 0.85% in the previous quarter, indicating a slight deterioration in loan quality[11]. - The allowance for credit losses to total loans remained stable at 1.10% for the quarter ended June 30, 2024[11]. - Classified loans slightly increased to $257 million, or 2.26% of total loans, compared to $214 million, or 1.90% a year earlier[13]. Capital Ratios - Total capital to risk-weighted assets for Northwest Bancshares, Inc. is $1,784,604, representing a ratio of 16.674%[25]. - Tier 1 capital to risk-weighted assets for Northwest Bancshares, Inc. is $1,536,552, with a ratio of 14.356%[25]. - Common equity tier 1 capital to risk-weighted assets for Northwest Bancshares, Inc. is $1,410,837, equating to a ratio of 13.182%[25]. - Tier 1 capital (leverage) to average assets for Northwest Bancshares, Inc. is 10.654%[25]. Employee and Office Metrics - Full-time equivalent employees decreased to 1,991 from 2,098, a reduction of 5.1%[31]. - The number of banking offices decreased to 139 from 142, indicating a contraction in physical presence[31]. Market Performance - The closing market price per share decreased to $11.55 from $12.48, a decline of 7.4%[31]. - Book value per share rose to $12.23 from $12.20, indicating a slight increase[31]. - Tangible book value per share increased to $9.20 from $8.84 year-over-year[38]. Efficiency Metrics - The efficiency ratio for the quarter ended June 30, 2024, was 68.62%, compared to 62.06% in the same quarter last year, indicating a decline in operational efficiency[34]. - The efficiency ratio, excluding certain losses and gains, improved to 65.41% from 67.35% in the previous quarter[41].

Core Viewpoint - The company reported a significant decline in net income for the quarter ended June 30, 2024, primarily due to a loss on the sale of investments and restructuring expenses, despite an increase in adjusted net operating income and strong performance in the commercial banking sector [15][17]. Financial Performance - The adjusted net operating income was $35 million, or $0.27 per diluted share, for the quarter ended June 30, 2024, representing an increase of $1 million from the same quarter last year [15]. - Net income for the same quarter was $4.7 million, or $0.04 per diluted share, a decrease of $28 million compared to the same quarter last year [15][17]. - The annualized return on average equity was 1.24% and on average assets was 0.13% for the quarter, down from 8.72% and 0.93% respectively in the same quarter last year [15][17]. Noninterest Income and Expenses - Noninterest income showed a loss of $8.8 million, significantly impacted by a $39 million loss on the sale of investment securities [17]. - Total noninterest expense increased to $92.4 million, driven by a $6 million rise in personnel expenses related to the expansion of the commercial business [17]. Loan and Deposit Growth - Average loans receivable increased by $303 million year-over-year, with a notable $631 million growth in the commercial banking portfolio [15]. - Average deposits grew by $666 million from the same quarter last year, primarily due to a $1.1 billion increase in average time deposits [15]. Securities Portfolio Restructuring - The company repositioned its securities portfolio by selling 15% of its investment securities, resulting in a pre-tax loss of $39 million [15]. - Proceeds from the sale were used to repay short-term borrowings, and the company expects to recover the loss over the next three years [15]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.20 per share, marking the 119th consecutive quarter of dividend payments [15].

Company Overview - Northwest Bancshares, Inc. is headquartered in Columbus, Ohio and serves as the bank holding company for Northwest Bank, which was founded in 1896. The bank offers a comprehensive range of business and personal banking products, employee benefits, and wealth management services [2] - Currently, Northwest operates 131 full-service financial centers and eight free-standing drive-through facilities across Pennsylvania, New York, Ohio, and Indiana. The company's common stock is listed on the NASDAQ Global Select Market under the ticker symbol "NWBI" [2] Upcoming Financial Events - Northwest will host a conference call to review its second-quarter 2024 financial results on July 23, 2024, at 9:00 a.m. (EDT), with results expected to be released at approximately 7:00 a.m. (EDT) on the same day [3] - The live audio webcast and presentation slides for the conference call will be accessible on the company's Investor Relations page [3] Communication of Financial Results - The company will announce its financial results through its social media channels, including @NWSB on X and Northwest Bank on LinkedIn, as well as via a press release distributed through PR Newswire [4] - Earnings results will also be filed with the Securities and Exchange Commission (SEC) on a Form 8-K, which will be available on the SEC website [4]

Core Viewpoint - Northwest Bancshares is expected to experience a decline in earnings due to margin pressure, but mid-single-digit loan growth will provide some support to the bottom line. The earnings per share (EPS) is projected to decrease by 13% year-over-year to $0.92 in 2024, followed by a modest increase of 2.2% to $0.94 in 2025. The stock is considered undervalued, and a buy rating is recommended due to a high dividend yield and potential price correction [11]. Financial Position - Net Loans are projected to grow from $10,802 million in FY22 to $12,282 million by FY25, reflecting a growth rate of 4.5% in FY25 [4]. - The net interest margin has declined for four consecutive quarters, with a drop of six basis points in Q1 2024. It is expected to remain stable before a rate cut late this year, with further declines anticipated in 2025 [4][5]. - Net interest income is expected to fall by 3.8% year-over-year in 2024, before rising by 2.5% in 2025 [6]. Loan Portfolio and Growth - The loan portfolio grew by 0.8% in Q1 2024, and it is anticipated that loan growth will match last year's performance, with a projected growth of 1.1% per quarter until the end of 2025 [12][13]. - Vehicle loans represent 17% of the total loan portfolio, which poses a higher credit risk compared to real estate loans. However, exposure to office loans is limited, keeping overall risk at a low to moderate level [8]. Dividend and Capital Position - The quarterly dividend has been maintained at $0.20 per share since Q2 2021, resulting in a dividend yield of 6.9%. The projected payout ratio is 86.8% for 2024 and 84.9% for 2025, which is considered sustainable [9]. - The total capital-to-risk-weighted assets ratio stands at 15.95%, significantly above the regulatory requirement, indicating a strong capital position [9]. Valuation and Price Target - The average price-to-tangible-book (P/TB) ratio over the last three years is 1.45, suggesting a target price of $13.4 for the end of 2024, which implies a 16.0% upside from the current market price [17]. - The average price-to-earnings (P/E) ratio indicates a target price of $10.9 for the end of 2024, suggesting a 5.1% downside from the current market price. A combined target price of $12.2 implies a 5.4% upside, leading to a total expected return of 12.4% when including the dividend yield [17].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2024 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 001-34582 NORTHWEST BANCSHARES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of i ...

Financial Performance - Net income for Q1 2024 was $29 million, or $0.23 per diluted share, a decrease of 13% from $34 million, or $0.26 per diluted share in Q1 2023[3]. - Net income for Q1 2024 was $29,163 thousand, down from $33,679 thousand in Q1 2023, representing a decline of 13.5%[24]. - Net income for the quarter ended March 31, 2024, was $29,163 thousand, slightly up from $29,014 thousand in the previous quarter[31]. - Basic earnings per share remained stable at $0.23 for Q1 2024, unchanged from Q4 2023[24]. - The annualized return on average equity for Q1 2024 was 7.57%, down from 9.11% in Q1 2023[27]. - The annualized return on average tangible common equity was 10.08% for the quarter ended March 31, 2024, down from 10.28% in the previous quarter[31]. - The efficiency ratio for Q1 2024 was 68.62%, compared to 64.10% in Q1 2023, indicating a decrease in operational efficiency[24]. Income and Expenses - Interest income rose by 18.7% to $160.24 million, while interest expense surged by 153.6% to $57.00 million, leading to a net interest margin decrease to 3.10%[11][12]. - Noninterest income increased by 16.7% to $27.96 million, primarily due to higher service charges and fees, and a significant gain on the sale of SBA loans[14][15]. - Total noninterest expense increased by 2.9% to $90.02 million, driven by a rise in personnel expenses related to the expansion of the commercial business[16]. - Total noninterest income for Q1 2024 was $29,169 thousand, compared to $23,969 thousand in Q1 2023, marking an increase of 21.5%[24]. Loans and Deposits - Average loans receivable increased by 4.2% to $11.35 billion, driven by a $553 million growth in commercial loans[7][8]. - Total loans as of March 31, 2024, amounted to $11,501,246, an increase from $11,414,809 as of December 31, 2023, representing a growth of 0.76%[51]. - Total deposits rose to $12,071,644 thousand, an increase of 4.63% from $11,537,179 thousand in the same quarter last year[22]. - Average deposits grew by 4.2% to $11.89 billion, with a $1.404 billion increase in average time deposits[9]. - The average deposit account balance was $17,000 as of March 31, 2024[35]. Credit Quality - The provision for credit losses decreased by 31.2% to $3.44 million, reflecting improvements in economic forecasts and a decline in reserves for unfunded commitments[13]. - The company reported a provision for credit losses of $4,234 thousand for Q1 2024, compared to $4,870 thousand in Q1 2023, indicating improved credit quality[24]. - The allowance for credit losses to total loans was 1.09% as of March 31, 2024, indicating a slight decrease from 1.10% in the previous quarter[49]. - Nonaccrual loans totaled $95,060,000 as of March 31, 2024, reflecting an increase from $94,384,000 in the previous quarter[49]. - The total delinquent loans decreased to $90,308, or 0.8% of total loans, as of March 31, 2024, compared to $93,270, or 0.8%, as of December 31, 2023[54]. Capital and Assets - Total assets increased to $14,510,263 thousand as of March 31, 2024, compared to $14,193,816 thousand a year earlier, reflecting a growth of 2.23%[22]. - Total shareholders' equity increased to $1,552,449 thousand as of March 31, 2024, compared to $1,513,275 thousand a year earlier, reflecting a growth of 2.58%[28]. - The total capital to risk-weighted assets ratio was 15.951% for Northwest Bancshares, Inc. as of March 31, 2024, exceeding the minimum requirement of 10.500%[39]. Securities and Investments - The company plans to reposition its securities portfolio by liquidating up to 15% of lower-yielding securities, expecting a yield pickup of 375-400 basis points[5][6]. - As of March 31, 2024, total marketable securities available-for-sale amounted to $1,298,108,000, with gross unrealized holding losses of $204,300,000[42]. - The total marketable securities held-to-maturity were valued at $801,107,000, with gross unrealized holding losses of $120,755,000[42]. Borrowings - Average borrowed funds decreased significantly by 36.5% to $469.70 million, attributed to a strategic pay down of wholesale borrowings[10]. - The total borrowed funds as of March 31, 2024, were $644,698,000, with an average interest rate of 5.58%[45]. - The company had $3.3 billion of additional borrowing capacity available with the FHLB of Pittsburgh as of March 31, 2024[45]. Future Outlook - The company plans to continue focusing on expanding its commercial loan portfolio and enhancing its interest-earning asset base in the upcoming quarters[62].

Financial Condition and Performance - As of December 31, 2023, the company had $85.8 million invested in municipal bonds and $194.3 million in loans to municipalities, indicating significant exposure to potential operating losses due to economic stress on state and local governments[236]. - The company's municipal bond portfolio may face risks from declining revenues and large unfunded liabilities, which could materially affect its financial condition and liquidity[236]. - At December 31, 2023, the company held $602.3 million in deposits from municipalities, which may be more volatile than other deposits, posing a risk to liquidity and earnings if a significant amount were withdrawn[247]. - Total assets increased to $14.42 billion as of December 31, 2023, from $14.11 billion in 2022, representing a growth of about 2.2%[467]. - Total liabilities increased to $12.87 billion in 2023, compared to $12.62 billion in 2022, marking a rise of about 2.0%[467]. - Shareholders' equity increased to $1.55 billion in 2023, compared to $1.49 billion in 2022, representing a growth of about 4.0%[467]. - Net income for 2023 was $134,957 thousand, a marginal increase from $133,666 thousand in 2022[472]. - Total noninterest expense increased to $351,554 thousand in 2023, up from $329,523 thousand in 2022, marking a 7% rise[470]. Interest Rate Sensitivity - Total interest-earning liabilities maturing or re-pricing within one year exceeded total interest-bearing assets by $565.9 million, resulting in a negative one-year gap ratio of 3.92%[425]. - The company’s interest-earning assets totaled $13.283 billion, with $4.072 billion, or 30.7%, consisting of assets with adjustable rates of interest as of December 31, 2023[424]. - Estimated net interest income may decrease by 5%, 10%, and 15% with parallel shifts of 100 bps, 200 bps, and 300 bps in interest rates, respectively[431]. - Estimated net income may decrease by 10%, 20%, and 30% under the same interest rate shifts[432]. - Market value of equity may decrease by 15%, 30%, and 35% with parallel shifts of 100 bps, 200 bps, and 300 bps in interest rates, respectively[433]. - Cumulative interest sensitivity gap as a percentage of total assets is 23.09%[428]. - Management estimates that $617.8 million (23.5%) of interest-bearing demand accounts are interest sensitive and may re-price in one year or less[437]. Credit Losses and Allowance - The allowance for credit losses for loans held for investment was $125.2 million as of December 31, 2023, compared to $118.0 million in 2022, reflecting an increase of approximately 1.0%[460]. - The allowance for credit losses as of December 31, 2023, was $125,243 thousand, up from $118,036 thousand in 2022, marking an increase of about 6.5%[585]. - The total allowance for credit losses for personal banking was $51,706 thousand in 2023, compared to $48,887 thousand in 2022, indicating an increase of about 3.3%[585]. - The allowance for credit losses is estimated using relevant information, with a focus on historical data and macroeconomic forecasts[506]. - The allowance for credit losses in the mortgage and home equity loan pools is calculated using a non-discounted cash flow method, incorporating key risk drivers such as current balance and original loan-to-value ratio[508]. - The company did not recognize an allowance for credit losses in its investment portfolio for the years ended December 31, 2023, 2022, and 2021[572]. Loans and Deposits - Loans held for investment rose to $11.41 billion in 2023, up from $10.91 billion in 2022, indicating an increase of approximately 4.6%[467]. - Deposits grew to $11.98 billion in 2023, up from $11.46 billion in 2022, reflecting an increase of approximately 4.6%[467]. - The total personal banking loans receivable reached $6,782,070 thousand as of December 31, 2023, compared to $6,964,928 thousand in the previous year, indicating a decrease of about 2.6%[579]. - Commercial banking loans receivable increased to $4,632,739 thousand in 2023 from $3,955,524 thousand in 2022, reflecting a growth of approximately 17.1%[579]. - The company serviced loans for others totaling approximately $230.8 million as of December 31, 2023, down from $1.549 billion in 2022[581]. - The company did not purchase any loans during the year ended December 31, 2023, after acquiring $182.8 million in small business equipment finance loan pools and $188.3 million in jumbo mortgage loan pools in 2022[581]. Marketable Securities - Total marketable securities available-for-sale as of December 31, 2023, amounted to $1,240,003 million, with gross unrealized holding gains of $223 million and gross unrealized holding losses of $196,867 million, resulting in a fair value of $1,043,359 million[568]. - Total marketable securities held-to-maturity as of December 31, 2023, were valued at $814,839 million, with gross unrealized holding gains of $1 million and gross unrealized holding losses of $115,334 million, leading to a fair value of $699,506 million[570]. - The company sold marketable securities classified as available-for-sale for $101.2 million during the year ended December 31, 2023, realizing gross gains of $9,000 and gross losses of $8.3 million[572]. - The fair value of temporarily impaired securities as of December 31, 2023, was $1,724,739 million, with total unrealized losses of $312,201 million[574]. - All held-to-maturity securities are issued by U.S. government-sponsored agencies or enterprises, which are highly rated and have a long history of no credit losses[575]. Internal Controls and Compliance - The company's internal control over financial reporting is effective as of December 31, 2023, based on established criteria[443]. - The company expressed an unqualified opinion on the effectiveness of its internal control over financial reporting as of December 31, 2023[456]. - The critical audit matter identified involved the assessment of expected credit losses on a collective basis, requiring significant auditor judgment due to measurement uncertainty[462]. Operating Leases and Compensation - Total operating lease costs for 2023 were $7.4 million, an increase from $6.9 million in 2022 and $6.5 million in 2021[564]. - Operating lease ROU assets increased to $61.7 million in 2023 from $54.9 million in 2022, while operating lease liabilities rose to $64.7 million from $57.7 million[564]. - The weighted average remaining lease term increased to 16.6 years in 2023 from 15.6 years in 2022, with a weighted average discount rate of 4.2% compared to 3.2% in the previous year[564]. - Stock-based employee compensation expense for common share awards was $4.3 million in 2023, $2.8 million in 2022, and $4.1 million in 2021, with a net income reduction of $3.1 million, $2.0 million, and $2.9 million respectively[545].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 001-34582 NORTHWEST BANCSHARES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 001-34582 NORTHWEST BANCSHARES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of in ...