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Total revenue grew 54% and net interest income increased 12% over prior year quarter
Successful completion and systems conversion of Penns Woods merger
Strong 2Q net interest margin at 3.56% as we continue to manage our funding costs and maintain our loan yield
Noninterest income grew 9% over prior quarter
2Q25 adjusted (non-GAAP) net income of $38 million, or $0.30 per diluted share
Commercial C&I lending momentum continues with 19% growth in the last year
COLUMBUS, Ohio, July 29, 2025 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (Nasdaq: NWBI) announced net income for the quarter ended June 30, 2025 of $34 million, or $0.26 per diluted share. This represents an increase of $29 million compared to the same quarter last year, when net income was $5 million, or $0.04 per diluted share, and a decrease of $10 million compared to the prior quarter, when net income was $43 million, or $0.34 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended June 30, 2025 were 8.26% and 0.93% compared to 1.24% and 0.13% for the same quarter last year and 10.90% and 1.22% from the prior quarter.
Adjusted net income (non-GAAP) for the quarter ended June 30, 2025 was $38 million, or $0.30, per diluted share, which decreased by $6 million from $44 million, or $0.35, per diluted share, in the prior quarter. This decrease was primarily driven by an $8 million decrease in net interest income impacted by a large non-accrual interest income recovery in the prior quarter. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended June 30, 2025 were 9.36% and 1.06% compared to 11.11% and 1.25% for the prior quarter.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on August 19, 2025 to shareholders of record as of August 8, 2025. This is the 123rd consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of June 30, 2025, this represents an annualized dividend yield of approximately 6.3%.
Louis J. Torchio, President and CEO, Northwest Bancshares commented, "I am pleased with our performance in the second quarter of 2025, as we continue to execute our strategy, delivering on our commitment to sustainable, responsible and profitable growth. Overall, we built on our strong start to the year, with net interest margin expansion and revenue growth, and we continued to exercise prudent expense control, resulting in further improvements in our efficiency ratio.
"Despite a still unpredictable operating environment, I am confident and excited about Northwest's prospects for the year ahead. Although we are always evaluating acquisition opportunities for additional scale and strategic benefits, with the Penns Woods acquisition and conversion just behind us, we are primarily focused on optimizing the operations and financial performance of the newly combined entity. We continue to enhance our capabilities, expand our footprint thru new branch openings, and provide personalized services and expertise to our customers and communities we serve."
Dollars in thousands | Change 2Q25 vs. | ||||||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | |||||
Average loans receivable | $ 11,248,954 | 11,176,516 | 11,368,749 | 0.6 % | (1.1) % | ||||
Average investments | 2,056,476 | 2,037,227 | 2,021,347 | 0.9 % | 1.7 % | ||||
Average deposits | 12,154,001 | 12,088,371 | 12,086,362 | 0.5 % | 0.6 % | ||||
Average borrowed funds | 208,342 | 224,122 | 323,191 | (7.0) % | (35.5) % | ||||
Income Statement Highlights
Dollars in thousands | Change 2Q25 vs. | ||||||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | |||||
Interest income | $ 171,570 | 180,595 | 166,854 | (5.0) % | 2.8 % | ||||
Interest expense | 52,126 | 52,777 | 60,013 | (1.2) % | (13.1) % | ||||
Net interest income | $ 119,444 | 127,818 | 106,841 | (6.6) % | 11.8 % | ||||
| |||||||||
Net interest margin | 3.56 % | 3.87 % | 3.20 % | ||||||
Compared to the quarter ended June 30, 2024, net interest income increased $13 million and net interest margin increased to 3.56% from 3.20% for the quarter ended June 30, 2024. This increase in net interest income resulted primarily from:
Compared to the quarter ended March 31, 2025, net interest income decreased $8 million and net interest margin decreased to 3.56% for the quarter ended June 30, 2025 from 3.87%. This decrease in net interest income resulted from the following:
Dollars in thousands | Change 2Q25 vs. | ||||||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | |||||
Provision for credit losses - loans | $ 11,456 | 8,256 | 2,169 | 38.8 % | 428.2 % | ||||
Provision for credit losses - unfunded commitments | (2,712) | (345) | (2,539) | 686.1 % | 6.8 % | ||||
Total provision for credit losses expense | $ 8,744 | 7,911 | (370) | 10.5 % | (2463.2) % | ||||
The total provision for credit losses for the quarter ended June 30, 2025 was $9 million primarily driven by downgrades and individual assessments within our commercial real estate portfolio offset by changes in the economic forecasts coupled with a decline in our reserves for unfunded commitments in the current period. This decline is based on the timing of origination and funding of commercial construction loans and lines of credit.
The Company saw an increase in classified loans to $518 million, or 4.57% of total loans, at June 30, 2025 from $257 million, or 2.26% of total loans, at June 30, 2024 and $279 million, or 2.49% of total loans, at March 31, 2025. This increase was driven by changes in our commercial real estate portfolio which increased $195 million.
Dollars in thousands | Change 2Q25 vs. | ||||||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | |||||
Noninterest income: | |||||||||
Loss on sale of investments | $ — | — | (39,413) | NA | NA | ||||
Gain on sale of SBA loans | 819 | 1,238 | 1,457 | (33.8) % | (43.8) % | ||||
Service charges and fees | 15,797 | 14,987 | 15,527 | 5.4 % | 1.7 % | ||||
Trust and other financial services income | 7,948 | 7,910 | 7,566 | 0.5 % | 5.0 % | ||||
Gain on real estate owned, net | 258 | 84 | 487 | 207.1 % | (47.0) % | ||||
Income from bank-owned life insurance | 1,421 | 1,331 | 1,371 | 6.8 % | 3.6 % | ||||
Mortgage banking income | 1,075 | 696 | 901 | 54.5 % | 19.3 % | ||||
Other operating income | 3,620 | 2,109 | 3,255 | 71.6 % | 11.2 % | ||||
Total noninterest income | $ 30,938 | 28,355 | (8,849) | 9.1 % | (449.6) % | ||||
Noninterest income increased $40 million from the quarter ended June 30, 2024 driven by a $39 million loss on the sale of investment securities in the prior year quarter. Excluding the loss on sale of securities, noninterest income was flat from the second quarter of 2024. Noninterest income increased by $3 million from the quarter ended March 31, 2025, due primarily to an increase in other operating income, driven by a gain on equity method investments, coupled with an increase in service charges and fees driven by commercial loan fees and deposit related fees based on customer activity.
Dollars in thousands | Change 2Q25 vs. | ||||||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | |||||
Noninterest expense: | |||||||||
Personnel expense | $ 55,213 | 54,540 | 53,531 | 1.2 % | 3.1 % | ||||
Non-personnel expense | 42,327 | 37,197 | 38,889 | 13.8 % | 8.8 % | ||||
Total noninterest expense | $ 97,540 | 91,737 | 92,420 | 6.3 % | 5.5 % | ||||
Noninterest expense increased from the quarter ended June 30, 2024 due to a $2 million increase in personnel expenses driven by an increase in core and incentive compensation coupled with an increase in non-personnel expense of $3 million due to merger and restructuring expenses in the current period.
Compared to the quarter ended March 31, 2025, noninterest expense increased due to an increase in non-personnel expense of $5 million due to merger and restructuring expenses in the quarter ended June 30, 2025.
Dollars in thousands | Change 2Q25 vs. | ||||||||
2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | |||||
Income before income taxes | $ 44,098 | 56,525 | 5,942 | (22.0) % | 642.1 % | ||||
Income tax expense | 10,423 | 13,067 | 1,195 | (20.2) % | 772.2 % | ||||
Net income | $ 33,675 | 43,458 | 4,747 | (22.5) % | 609.4 % | ||||
The provision for income taxes increased by $9 million from the quarter ended June 30, 2024 and decreased $3 million from the quarter ended March 31, 2025 primarily due to the quarterly change in income before income taxes.
Net income increased from the quarter ended June 30, 2024 and decreased from the quarter ended March 31, 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 June 30, 2025, Northwest operated 131 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
# # #
Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitation, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies or instability or breakdown in the financial services sector; (3) general economic conditions including inflation, an increase in non-performing loans or changes in monetary, fiscal, regulatory and tariff policies of the U.S. government; (4) changes in legislation or regulatory requirements, including as part of the regulatory reform agenda of the Trump administration; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; (7) increased risk associated with commercial real-estate and business loans; (8) changes in liquidity, including the size and composition of our deposit portfolio; (9) reduction in the value of our goodwill and other intangible assets; and (10) the effect of any pandemic, war or act of terrorism. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release, except as required by law.
Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) (dollars in thousands, except per share amounts) | |||||
| |||||
June 30, | December 31, | June 30, | |||
Assets | |||||
Cash and cash equivalents | $ 267,075 | 288,378 | 228,433 | ||
Marketable securities available-for-sale (amortized cost of $1,341,651, $1,278,665 and $1,202,354, respectively) | 1,194,883 | 1,108,944 | 1,029,191 | ||
Marketable securities held-to-maturity (fair value of $628,936, $637,948 and $663,292, respectively) | 719,561 | 750,586 | 784,208 | ||
Total cash and cash equivalents and marketable securities | 2,181,519 | 2,147,908 | 2,041,832 | ||
| |||||
Loans held-for-sale | 13,104 | 76,331 | 9,445 | ||
Residential mortgage loans | 3,052,126 | 3,178,269 | 3,315,303 | ||
Home equity loans | 1,157,520 | 1,149,396 | 1,180,486 | ||
Consumer loans | 2,211,275 | 1,995,085 | 2,080,058 | ||
Commercial real estate loans | 2,782,404 | 2,849,862 | 3,026,958 | ||
Commercial loans | 2,138,499 | 2,007,402 | 1,742,114 | ||
Total loans receivable | 11,341,824 | 11,180,014 | 11,354,364 | ||
Allowance for credit losses | (129,159) | (116,819) | (125,070) | ||
Loans receivable, net | 11,212,665 | 11,063,195 | 11,229,294 | ||
| |||||
FHLB stock, at cost | 17,809 | 21,006 | 20,842 | ||
Accrued interest receivable | 46,987 | 46,356 | 48,739 | ||
Real estate owned, net | 48 | 35 | 74 | ||
Premises and equipment, net | 123,402 | 124,246 | 128,208 | ||
Bank-owned life insurance | 255,708 | 253,137 | 253,890 | ||
Goodwill | 380,997 | 380,997 | 380,997 | ||
Other intangible assets, net | 1,897 | 2,837 | 3,954 | ||
Other assets | 250,971 | 292,176 | 277,723 | ||
Total assets | $ 14,485,107 | 14,408,224 | 14,385,553 | ||
Liabilities and shareholders' equity | |||||
Liabilities | |||||
Noninterest-bearing demand deposits | $ 2,643,099 | 2,621,415 | 2,581,699 | ||
Interest-bearing demand deposits | 2,622,695 | 2,666,504 | 2,565,750 | ||
Money market deposit accounts | 2,153,078 | 2,007,739 | 1,964,841 | ||
Savings deposits | 2,211,509 | 2,171,251 | 2,148,727 | ||
Time deposits | 2,570,648 | 2,677,645 | 2,826,362 | ||
Total deposits | 12,201,029 | 12,144,554 | 12,087,379 | ||
| |||||
Borrowed funds | 198,008 | 200,331 | 242,363 | ||
Subordinated debt | 114,713 | 114,538 | 114,364 | ||
Junior subordinated debentures | 129,964 | 129,834 | 129,703 | ||
Advances by borrowers for taxes and insurance | 47,865 | 42,042 | 52,271 | ||
Accrued interest payable | 7,729 | 6,935 | 21,423 | ||
Other liabilities | 143,731 | 173,134 | 181,452 | ||
Total liabilities | 12,843,039 | 12,811,368 | 12,828,955 | ||
Shareholders' equity | |||||
Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares issued | — | — | — | ||
Common stock, $0.01 par value: 500,000,000 shares authorized, 127,842,403, 127,508,003 and 127,307,997 shares issued and outstanding, respectively | 1,278 | 1,275 | 1,273 | ||
Additional paid-in capital | 1,037,615 | 1,033,385 | 1,027,703 | ||
Retained earnings | 699,049 | 673,110 | 657,706 | ||
Accumulated other comprehensive loss | (95,874) | (110,914) | (130,084) | ||
Total shareholders' equity | 1,642,068 | 1,596,856 | 1,556,598 | ||
Total liabilities and shareholders' equity | $ 14,485,107 | 14,408,224 | 14,385,553 | ||
| |||||
Equity to assets | 11.34 % | 11.08 % | 10.82 % | ||
Tangible common equity to tangible assets * | 8.93 % | 8.65 % | 8.37 % | ||
Book value per share | $ 12.84 | 12.52 | 12.23 | ||
Tangible book value per share * | $ 9.85 | 9.51 | 9.20 | ||
Closing market price per share | $ 12.78 | 13.19 | 11.55 | ||
Full time equivalent employees | 1,998 | 1,956 | 1,991 | ||
Number of banking offices | 141 | 141 | 139 | ||
* | 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 | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
Interest income: | |||||||||
Loans receivable | $ 154,914 | 164,638 | 155,838 | 156,413 | 153,954 | ||||
Mortgage-backed securities | 12,154 | 11,730 | 11,515 | 10,908 | 9,426 | ||||
Taxable investment securities | 999 | 933 | 910 | 842 | 728 | ||||
Tax-free investment securities | 512 | 512 | 515 | 512 | 457 | ||||
FHLB stock dividends | 318 | 366 | 392 | 394 | 498 | ||||
Interest-earning deposits | 2,673 | 2,416 | 1,552 | 2,312 | 1,791 | ||||
Total interest income | 171,570 | 180,595 | 170,722 | 171,381 | 166,854 | ||||
Interest expense: | |||||||||
Deposits | 46,826 | 47,325 | 50,854 | 54,198 | 52,754 | ||||
Borrowed funds | 5,300 | 5,452 | 5,671 | 5,881 | 7,259 | ||||
Total interest expense | 52,126 | 52,777 | 56,525 | 60,079 | 60,013 | ||||
Net interest income | 119,444 | 127,818 | 114,197 | 111,302 | 106,841 | ||||
Provision for credit losses - loans | 11,456 | 8,256 | 15,549 | 5,727 | 2,169 | ||||
Provision for credit losses - unfunded commitments | (2,712) | (345) | 1,016 | (852) | (2,539) | ||||
Net interest income after provision for credit losses | 110,700 | 119,907 | 97,632 | 106,427 | 107,211 | ||||
Noninterest income: | |||||||||
Loss on sale of investments | — | — | — | — | (39,413) | ||||
Gain on sale of SBA loans | 819 | 1,238 | 822 | 667 | 1,457 | ||||
Service charges and fees | 15,797 | 14,987 | 15,975 | 15,932 | 15,527 | ||||
Trust and other financial services income | 7,948 | 7,910 | 7,485 | 7,924 | 7,566 | ||||
Gain on real estate owned, net | 258 | 84 | 238 | 105 | 487 | ||||
Income from bank-owned life insurance | 1,421 | 1,331 | 2,020 | 1,434 | 1,371 | ||||
Mortgage banking income | 1,075 | 696 | 224 | 744 | 901 | ||||
Other operating income | 3,620 | 2,109 | 13,299 | 1,027 | 3,255 | ||||
Total noninterest income/(loss) | 30,938 | 28,355 | 40,063 | 27,833 | (8,849) | ||||
Noninterest expense: | |||||||||
Compensation and employee benefits | 55,213 | 54,540 | 53,198 | 56,186 | 53,531 | ||||
Premises and occupancy costs | 7,122 | 8,400 | 7,263 | 7,115 | 7,464 | ||||
Office operations | 2,910 | 2,977 | 3,036 | 2,811 | 3,819 | ||||
Collections expense | 838 | 328 | 905 | 474 | 406 | ||||
Processing expenses | 12,973 | 13,990 | 15,361 | 14,570 | 14,695 | ||||
Marketing expenses | 3,018 | 1,880 | 2,327 | 2,004 | 2,410 | ||||
Federal deposit insurance premiums | 2,296 | 2,328 | 2,949 | 2,763 | 2,865 | ||||
Professional services | 3,990 | 2,756 | 3,788 | 3,302 | 3,728 | ||||
Amortization of intangible assets | 436 | 504 | 526 | 590 | 635 | ||||
Merger, asset disposition and restructuring expense | 6,244 | 1,123 | 2,850 | 43 | 1,915 | ||||
Other expenses | 2,500 | 2,911 | 3,123 | 909 | 952 | ||||
Total noninterest expense | 97,540 | 91,737 | 95,326 | 90,767 | 92,420 | ||||
Income before income taxes | 44,098 | 56,525 | 42,369 | 43,493 | 5,942 | ||||
Income tax expense | 10,423 | 13,067 | 9,619 | 9,875 | 1,195 | ||||
Net income | $ 33,675 | 43,458 | 32,750 | 33,618 | 4,747 | ||||
| |||||||||
Basic earnings per share | $ 0.26 | 0.34 | 0.26 | 0.26 | 0.04 | ||||
Diluted earnings per share | $ 0.26 | 0.34 | 0.26 | 0.26 | 0.04 | ||||
Weighted average common shares outstanding - diluted | 128,114,509 | 128,299,013 | 127,968,910 | 127,714,511 | 127,199,039 | ||||
| |||||||||
Annualized return on average equity | 8.26 % | 10.90 % | 8.20 % | 8.50 % | 1.24 % | ||||
Annualized return on average assets | 0.93 % | 1.22 % | 0.91 % | 0.93 % | 0.13 % | ||||
Annualized return on average tangible common equity * | 10.78 % | 14.29 % | 10.81 % | 11.26 % | 1.65 % | ||||
Efficiency ratio | 64.86 % | 58.74 % | 61.80 % | 65.24 % | 94.31 % | ||||
Efficiency ratio, excluding certain items ** | 60.42 % | 57.70 % | 59.61 % | 64.78 % | 65.41 % | ||||
* | Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items. |
** | Excludes loss on sale of investments, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items. |
Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts) | |||
| |||
Six months ended June 30, | |||
2025 | 2024 | ||
Interest income: | |||
Loans receivable | $ 319,552 | 303,525 | |
Mortgage-backed securities | 23,884 | 17,370 | |
Taxable investment securities | 1,932 | 1,522 | |
Tax-free investment securities | 1,024 | 948 | |
FHLB stock dividends | 684 | 1,105 | |
Interest-earning deposits | 5,089 | 2,623 | |
Total interest income | 352,165 | 327,093 | |
Interest expense: | |||
Deposits | 94,151 | 100,440 | |
Borrowed funds | 10,752 | 16,574 | |
Total interest expense | 104,903 | 117,014 | |
Net interest income | 247,262 | 210,079 | |
Provision for credit losses - loans | 19,712 | 6,403 | |
Provision for credit losses - unfunded commitments | (3,057) | (3,338) | |
Net interest income after provision for credit losses | 230,607 | 207,014 | |
Noninterest income: | |||
Loss on sale of investments | — | (39,413) | |
Gain on sale of SBA loans | 2,057 | 2,330 | |
Service charges and fees | 30,784 | 31,050 | |
Trust and other financial services income | 15,858 | 14,693 | |
Gain on real estate owned, net | 342 | 544 | |
Income from bank-owned life insurance | 2,752 | 2,873 | |
Mortgage banking income | 1,771 | 1,353 | |
Other operating income | 5,729 | 5,684 | |
Total noninterest income | 59,293 | 19,114 | |
Noninterest expense: | |||
Compensation and employee benefits | 109,753 | 105,071 | |
Premises and occupancy costs | 15,522 | 15,091 | |
Office operations | 5,887 | 6,586 | |
Collections expense | 1,166 | 742 | |
Processing expenses | 26,963 | 29,420 | |
Marketing expenses | 4,898 | 4,559 | |
Federal deposit insurance premiums | 4,624 | 5,888 | |
Professional services | 6,746 | 7,793 | |
Amortization of intangible assets | 940 | 1,336 | |
Merger, asset disposition and restructuring expense | 7,367 | 2,870 | |
Other expenses | 5,411 | 3,088 | |
Total noninterest expense | 189,277 | 182,444 | |
Income before income taxes | 100,623 | 43,684 | |
Income tax expense | 23,490 | 9,774 | |
Net income | $ 77,133 | 33,910 | |
| |||
Basic earnings per share | $ 0.60 | 0.27 | |
Diluted earnings per share | $ 0.60 | 0.27 | |
| |||
Weighted average common shares outstanding - diluted | 128,347,141 | 127,345,379 | |
| |||
Annualized return on average equity | 9.56 % | 4.41 % | |
Annualized return on average assets | 1.08 % | 0.47 % | |
Annualized return on tangible common equity * | 12.51 % | 5.88 % | |
| |||
Efficiency ratio | 61.74 % | 79.60 % | |
Efficiency ratio, excluding certain items ** | 59.03 % | 66.36 % | |
* | 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 | Six months ended June 30, | ||||||||
June 30, | March 31, | June 30, | 2025 | 2024 | |||||
Reconciliation of net income to adjusted net income: | |||||||||
Net income (GAAP) | $ 33,675 | 43,458 | 4,747 | 77,133 | 33,910 | ||||
Non-GAAP adjustments | |||||||||
Add: merger, asset disposition and restructuring expense | 6,244 | 1,123 | 1,915 | 7,367 | 2,870 | ||||
Add: loss on the sale of investments | — | — | 39,413 | — | 39,413 | ||||
Less: tax benefit of non-GAAP adjustments | (1,748) | (314) | (11,572) | (2,063) | (11,839) | ||||
Adjusted net income (non-GAAP) | $ 38,171 | 44,267 | 34,503 | 82,437 | 64,354 | ||||
Diluted earnings per share (GAAP) | $ 0.26 | 0.34 | 0.04 | 0.60 | 0.27 | ||||
Diluted adjusted earnings per share (non-GAAP) | $ 0.30 | 0.35 | 0.27 | 0.64 | 0.51 | ||||
| |||||||||
Average equity | $ 1,635,966 | 1,616,611 | 1,541,434 | 1,626,342 | 1,545,651 | ||||
Average assets | 14,468,197 | 14,402,483 | 14,458,592 | 14,435,522 | 14,433,602 | ||||
Annualized return on average equity (GAAP) | 8.26 % | 10.90 % | 1.24 % | 9.56 % | 4.41 % | ||||
Annualized return on average assets (GAAP) | 0.93 % | 1.22 % | 0.13 % | 1.08 % | 0.47 % | ||||
Annualized return on average equity, excluding merger, asset disposition and restructuring expense and loss on the sale of investments, net of tax (non-GAAP) | 9.36 % | 11.11 % | 9.00 % | 10.22 % | 8.37 % | ||||
Annualized return on average assets, excluding merger, asset disposition and restructuring expense and loss on sale of investments, net of tax (non-GAAP) | 1.06 % | 1.25 % | 0.96 % | 1.15 % | 0.90 % | ||||
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. |
June 30, | December 31, | June 30, | |||
Tangible common equity to assets | |||||
Total shareholders' equity | $ 1,642,068 | 1,596,856 | 1,556,598 | ||
Less: goodwill and intangible assets | (382,894) | (383,834) | (384,951) | ||
Tangible common equity | $ 1,259,174 | 1,213,022 | 1,171,647 | ||
| |||||
Total assets | $ 14,485,107 | 14,408,224 | 14,385,553 | ||
Less: goodwill and intangible assets | (382,894) | (383,834) | (384,951) | ||
Tangible assets | $ 14,102,213 | 14,024,390 | 14,000,602 | ||
| |||||
Tangible common equity to tangible assets | 8.93 % | 8.65 % | 8.37 % | ||
| |||||
Tangible book value per share | |||||
Tangible common equity | $ 1,259,174 | 1,213,022 | 1,171,647 | ||
Common shares outstanding | 127,842,403 | 127,508,003 | 127,307,997 | ||
Tangible book value per share | 9.85 | 9.51 | 9.20 |
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 | Six months ended June 30, | ||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | 2025 | 2024 | |||||||
Annualized return on average tangible common equity | |||||||||||||
Net income | $ 33,675 | 43,458 | 32,750 | 33,618 | 4,747 | 77,133 | 33,910 | ||||||
Average shareholders' equity | 1,635,966 | 1,616,611 | 1,589,228 | 1,572,897 | 1,541,434 | 1,626,342 | 1,545,651 | ||||||
Less: average goodwill and intangible assets | (383,152) | (383,649) | (384,178) | (384,730) | (385,364) | (383,399) | (385,701) | ||||||
Average tangible common equity | $ 1,252,814 | 1,232,962 | 1,205,050 | 1,188,167 | 1,156,070 | 1,242,943 | 1,159,950 | ||||||
| |||||||||||||
Annualized return on average tangible common equity | 10.78 % | 14.29 % | 10.81 % | 11.26 % | 1.65 % | 12.51 % | 5.88 % | ||||||
| |||||||||||||
Efficiency ratio, excluding loss on the sale of investments, amortization and merger, asset disposition and restructuring expenses | |||||||||||||
Non-interest expense | $ 97,540 | 91,737 | 95,326 | 90,767 | 92,420 | 189,277 | 182,444 | ||||||
Less: amortization expense | (436) | (504) | (526) | (590) | (635) | (940) | (1,336) | ||||||
Less: merger, asset disposition and restructuring expenses | (6,244) | (1,123) | (2,850) | (43) | (1,915) | (7,367) | (2,870) | ||||||
Non-interest expense, excluding amortization and merger, assets disposition and restructuring expenses | $ 90,860 | 90,110 | 91,950 | 90,134 | 89,870 | 180,970 | 178,238 | ||||||
| |||||||||||||
Net interest income | $ 119,444 | 127,818 | 114,197 | 111,302 | 106,841 | 247,262 | 210,079 | ||||||
Non-interest income | 30,938 | 28,355 | 40,063 | 27,833 | (8,849) | 59,293 | 19,114 | ||||||
Add: loss on the sale of investments | — | — | — | — | 39,413 | — | 39,413 | ||||||
Net interest income plus non-interest income, excluding loss on sale of investments | $ 150,382 | 156,173 | 154,260 | 139,135 | 137,405 | 306,555 | 268,606 | ||||||
| |||||||||||||
Efficiency ratio, excluding loss on sale of investments, amortization and merger, asset disposition and restructuring expenses | 60.42 % | 57.70 % | 59.61 % | 64.78 % | 65.41 % | 59.03 % | 66.36 % | ||||||
* | 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 June 30, 2025 | |||||
Balance | Percent of | Number of | |||
Uninsured deposits per the Call Report (1) | $ 3,274,416 | 26.8 % | 5,418 | ||
Less intercompany deposit accounts | 1,322,820 | 10.8 % | 12 | ||
Less collateralized deposit accounts | 404,411 | 3.3 % | 253 | ||
Uninsured deposits excluding intercompany and collateralized accounts | $ 1,547,185 | 12.7 % | 5,153 | ||
(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 $39.5 million, or 0.24% of total deposits, as of June 30, 2025. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $194 million, or 1.59% of total deposits, as of June 30, 2025. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $300,249 as of June 30, 2025. |
The following table provides additional details for the Company's deposit portfolio: |
As of June 30, 2025 | |||||
Balance | Percent of | Number of | |||
Personal noninterest bearing demand deposits | $ 1,385,555 | 11.4 % | 284,252 | ||
Business noninterest bearing demand deposits | 1,257,544 | 10.3 % | 42,811 | ||
Personal interest-bearing demand deposits | 1,345,985 | 11.0 % | 54,853 | ||
Business interest-bearing demand deposits | 1,276,710 | 10.5 % | 7,425 | ||
Personal money market deposits | 1,513,265 | 12.4 % | 25,159 | ||
Business money market deposits | 639,813 | 5.2 % | 2,689 | ||
Savings deposits | 2,211,509 | 18.1 % | 175,659 | ||
Time deposits | 2,570,648 | 21.1 % | 77,685 | ||
Total deposits | $ 12,201,029 | 100.0 % | 670,533 | ||
Our average deposit account balance as of June 30, 2025 was $18,196. The Company's insured cash sweep deposit balance was $608 million as of June 30, 2025. |
Northwest Bancshares, Inc. and Subsidiaries Regulatory Capital Requirements (Unaudited) (dollars in thousands) | |||||||||||
At June 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. | $ 1,756,799 | 16.32 % | $ 1,130,037 | 10.50 % | $ 1,076,226 | 10.00 % | |||||
Northwest Bank | 1,521,646 | 14.15 % | 1,129,018 | 10.50 % | 1,075,255 | 10.00 % | |||||
| |||||||||||
Tier 1 capital (to risk weighted assets) | |||||||||||
Northwest Bancshares, Inc. | 1,507,385 | 14.01 % | 914,792 | 8.50 % | 645,735 | 6.00 % | |||||
Northwest Bank | 1,387,064 | 12.90 % | 913,967 | 8.50 % | 860,204 | 8.00 % | |||||
| |||||||||||
Common equity tier 1 capital (to risk weighted assets) | |||||||||||
Northwest Bancshares, Inc. | 1,381,410 | 12.84 % | 753,358 | 7.00 % | N/A | N/A | |||||
Northwest Bank | 1,387,064 | 12.90 % | 752,679 | 7.00 % | 698,916 | 6.50 % | |||||
| |||||||||||
Tier 1 capital (leverage) (to average assets) | |||||||||||
Northwest Bancshares, Inc. | 1,507,385 | 10.55 % | 571,623 | 4.00 % | N/A | N/A | |||||
Northwest Bank | 1,387,064 | 9.71 % | 571,230 | 4.00 % | 714,037 | 5.00 % | |||||
(1) | June 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) | ||||||||||
| ||||||||||
June 30, 2025 | ||||||||||
Marketable securities available-for-sale | Amortized cost | Gross unrealized holding gains | Gross unrealized holding losses | Fair value | Weighted average | |||||
Debt issued by the U.S. government and agencies: | ||||||||||
Due after ten years | $ 43,461 | — | (8,531) | 34,930 | 5.91 | |||||
| ||||||||||
Debt issued by government sponsored enterprises: | ||||||||||
Due after one year through five years | 84 | — | (4) | 80 | 1.11 | |||||
| ||||||||||
Municipal securities: | ||||||||||
Due after one year through five years | 853 | 12 | — | 865 | 1.32 | |||||
Due after five years through ten years | 17,774 | 109 | (1,772) | 16,111 | 7.14 | |||||
Due after ten years | 50,029 | 25 | (9,189) | 40,865 | 9.79 | |||||
| ||||||||||
Corporate debt issues: | ||||||||||
Due after one year through five years | 7,929 | 56 | (67) | 7,918 | 3.87 | |||||
Due after five years through ten years | 22,049 | 873 | — | 22,922 | 4.04 | |||||
| ||||||||||
Mortgage-backed agency securities: | ||||||||||
Fixed rate pass-through | 265,566 | 1,452 | (13,350) | 253,668 | 6.42 | |||||
Variable rate pass-through | 3,309 | 55 | (2) | 3,362 | 3.54 | |||||
Fixed rate agency CMOs | 887,740 | 1,996 | (118,226) | 771,510 | 4.38 | |||||
Variable rate agency CMOs | 42,857 | 30 | (235) | 42,652 | 4.99 | |||||
Total mortgage-backed agency securities | 1,199,472 | 3,533 | (131,813) | 1,071,192 | 4.88 | |||||
Total marketable securities available-for-sale | $ 1,341,651 | 4,608 | (151,376) | 1,194,883 | 5.08 | |||||
| ||||||||||
Marketable securities held-to-maturity | ||||||||||
Government sponsored | ||||||||||
Due in one year or less | $ 16,477 | — | (381) | 16,096 | 0.73 | |||||
Due after one year through five years | 107,986 | — | (10,215) | 97,771 | 3.46 | |||||
| ||||||||||
Mortgage-backed agency securities: | ||||||||||
Fixed rate pass-through | 125,996 | — | (15,293) | 110,703 | 4.48 | |||||
Variable rate pass-through | 346 | 3 | — | 349 | 4.81 | |||||
Fixed rate agency CMOs | 468,228 | — | (64,736) | 403,492 | 5.56 | |||||
Variable rate agency CMOs | 528 | — | (3) | 525 | 4.18 | |||||
Total mortgage-backed agency securities | 595,098 | 3 | (80,032) | 515,069 | 5.33 | |||||
Total marketable securities held-to-maturity | $ 719,561 | 3 | (90,628) | 628,936 | 4.95 | |||||
Northwest Bancshares, Inc. and Subsidiaries Asset Quality (Unaudited) (dollars in thousands) | |||||||||
| |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
Nonaccrual loans: | |||||||||
Residential mortgage loans | $ 8,482 | 7,025 | 6,951 | 7,541 | 6,403 | ||||
Home equity loans | 3,507 | 3,004 | 3,332 | 4,041 | 4,055 | ||||
Consumer loans | 4,418 | 5,201 | 5,028 | 5,205 | 4,609 | ||||
Commercial real estate loans | 62,091 | 31,763 | 36,967 | 43,471 | 74,972 | ||||
Commercial loans | 23,896 | 11,757 | 9,123 | 16,570 | 12,120 | ||||
Total nonaccrual loans | 102,394 | 58,750 | 61,401 | 76,828 | 102,159 | ||||
Loans 90 days past due and still accruing | 493 | 603 | 656 | 1,045 | 2,511 | ||||
Nonperforming loans | 102,887 | 59,353 | 62,057 | 77,873 | 104,670 | ||||
Real estate owned, net | 48 | 80 | 35 | 76 | 74 | ||||
Other nonperforming assets (1) | — | 16,102 | 16,102 | — | — | ||||
Nonperforming assets | $ 102,935 | 75,535 | 78,194 | 77,949 | 104,744 | ||||
| |||||||||
Nonperforming loans to total loans | 0.91 % | 0.53 % | 0.56 % | 0.69 % | 0.92 % | ||||
Nonperforming assets to total assets | 0.71 % | 0.52 % | 0.54 % | 0.54 % | 0.73 % | ||||
Allowance for credit losses to total loans | 1.14 % | 1.09 % | 1.04 % | 1.11 % | 1.10 % | ||||
Allowance for credit losses to nonperforming loans | 125.53 % | 206.91 % | 188.24 % | 161.56 % | 119.49 % | ||||
(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 June 30, 2025 | Pass | Special mention * | Substandard ** | Doubtful | Loss | Loans receivable | ||||||
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 | ||||||
At June 30, 2024 | ||||||||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 3,303,603 | — | 11,700 | — | — | 3,315,303 | ||||||
Home equity loans | 1,176,187 | — | 4,299 | — | — | 1,180,486 | ||||||
Consumer loans | 2,074,869 | — | 5,189 | — | — | 2,080,058 | ||||||
Total Personal Banking | 6,554,659 | — | 21,188 | — | — | 6,575,847 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,682,086 | 130,879 | 213,993 | — | — | 3,026,958 | ||||||
Commercial loans | 1,673,052 | 47,400 | 21,662 | — | — | 1,742,114 | ||||||
Total Commercial Banking | 4,355,138 | 178,279 | 235,655 | — | — | 4,769,072 | ||||||
Total loans | $ 10,909,797 | 178,279 | 256,843 | — | — | 11,344,919 | ||||||
* | Includes $4.0 million, $4.7 million, $2.7 million, $2.9 million, and $2.5 million of acquired loans at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively. |
** | Includes $19.2 million, $18.0 million, $19.8 million, $26.0 million, and $24.3 million of acquired loans at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively. |
Northwest Bancshares, Inc. and Subsidiaries Loan Delinquency (Unaudited) (dollars in thousands) | |||||||||||||||||||
| |||||||||||||||||||
June 30, | * | March 31, | * | December 31, 2024 | * | September 30, 2024 | * | June 30, 2024 | * | ||||||||||
Loans delinquent 30 days to 59 days: | |||||||||||||||||||
Residential mortgage loans | $ 561 | — % | $ 32,840 | 1.0 % | $ 28,690 | 0.9 % | $ 685 | — % | $ 616 | — % | |||||||||
Home equity loans | 4,664 | 0.4 % | 3,882 | 0.3 % | 5,365 | 0.5 % | 3,907 | 0.3 % | 3,771 | 0.3 % | |||||||||
Consumer loans | 9,174 | 0.4 % | 8,792 | 0.4 % | 11,102 | 0.6 % | 10,777 | 0.5 % | 10,372 | 0.5 % | |||||||||
Commercial real estate loans | 4,585 | 0.2 % | 8,536 | 0.3 % | 5,215 | 0.2 % | 5,919 | 0.2 % | 4,310 | 0.1 % | |||||||||
Commercial loans | 5,569 | 0.3 % | 6,841 | 0.3 % | 5,632 | 0.3 % | 3,260 | 0.2 % | 4,366 | 0.3 % | |||||||||
Total loans delinquent 30 days to 59 days | $ 24,553 | 0.2 % | $ 60,891 | 0.5 % | $ 56,004 | 0.5 % | $ 24,548 | 0.2 % | $ 23,435 | 0.2 % | |||||||||
| |||||||||||||||||||
Loans delinquent 60 days to 89 days: | |||||||||||||||||||
Residential mortgage loans | $ 8,958 | 0.3 % | $ 3,074 | 0.1 % | $ 10,112 | 0.3 % | $ 9,027 | 0.3 % | $ 8,223 | 0.2 % | |||||||||
Home equity loans | 985 | 0.1 % | 1,290 | 0.1 % | 1,434 | 0.1 % | 882 | 0.1 % | 1,065 | 0.1 % | |||||||||
Consumer loans | 3,233 | 0.1 % | 2,808 | 0.1 % | 3,640 | 0.2 % | 3,600 | 0.2 % | 3,198 | 0.2 % | |||||||||
Commercial real estate loans | 13,240 | 0.5 % | 2,001 | 0.1 % | 915 | — % | 7,643 | 0.3 % | 3,155 | 0.1 % | |||||||||
Commercial loans | 2,031 | 0.1 % | 2,676 | 0.1 % | 1,726 | 0.1 % | 753 | — % | 8,732 | 0.5 % | |||||||||
Total loans delinquent 60 days to 89 days | $ 28,447 | 0.3 % | $ 11,849 | 0.1 % | $ 17,827 | 0.2 % | $ 21,905 | 0.2 % | $ 24,373 | 0.2 % | |||||||||
| |||||||||||||||||||
Loans delinquent 90 days or more: ** | |||||||||||||||||||
Residential mortgage loans | $ 6,905 | 0.2 % | $ 4,005 | 0.1 % | $ 4,931 | 0.2 % | $ 5,370 | 0.2 % | $ 5,553 | 0.2 % | |||||||||
Home equity loans | 1,879 | 0.2 % | 1,893 | 0.2 % | 2,250 | 0.2 % | 2,558 | 0.2 % | 2,506 | 0.2 % | |||||||||
Consumer loans | 3,486 | 0.2 % | 4,026 | 0.2 % | 3,967 | 0.2 % | 3,983 | 0.2 % | 3,012 | 0.1 % | |||||||||
Commercial real estate loans | 41,875 | 1.5 % | 23,433 | 0.8 % | 7,702 | 0.3 % | 6,167 | 0.2 % | 6,034 | 0.2 % | |||||||||
Commercial loans | 10,433 | 0.5 % | 5,994 | 0.3 % | 7,335 | 0.4 % | 14,484 | 0.8 % | 3,385 | 0.2 % | |||||||||
Total loans delinquent 90 days or more | $ 64,578 | 0.6 % | $ 39,351 | 0.3 % | $ 26,185 | 0.2 % | $ 32,562 | 0.3 % | $ 20,490 | 0.2 % | |||||||||
| |||||||||||||||||||
Total loans delinquent | $ 117,578 | 1.0 % | $ 112,091 | 1.0 % | $ 100,016 | 0.9 % | $ 79,015 | 0.7 % | $ 68,298 | 0.6 % | |||||||||
* | Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding. |
** | Includes purchased credit deteriorated loans of $0.3 million, $0.2 million, $0.2 million, $0.2 million, and $0.1 million at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively. |
Northwest Bancshares, Inc. and Subsidiaries Allowance for Credit Losses (Unaudited) (dollars in thousands) | |||||||||
| |||||||||
Quarter ended | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
Beginning balance | $ 122,809 | 116,819 | 125,813 | 125,070 | 124,897 | ||||
Provision | 11,456 | 8,256 | 15,549 | 5,727 | 2,169 | ||||
Charge-offs residential mortgage | (273) | (588) | (176) | (255) | (252) | ||||
Charge-offs home equity | (413) | (273) | (197) | (890) | (237) | ||||
Charge-offs consumer | (3,331) | (3,805) | (4,044) | (3,560) | (2,561) | ||||
Charge-offs commercial real estate | (293) | (116) | (13,997) | (475) | (500) | ||||
Charge-offs commercial | (3,597) | (571) | (10,400) | (1,580) | (1,319) | ||||
Recoveries | 2,801 | 3,087 | 4,271 | 1,776 | 2,873 | ||||
Ending balance | $ 129,159 | 122,809 | 116,819 | 125,813 | 125,070 | ||||
Net charge-offs to average loans, annualized | 0.18 % | 0.08 % | 0.87 % | 0.18 % | 0.07 % | ||||
Six months ended June 30, | |||
2025 | 2024 | ||
Beginning balance | $ 116,819 | 125,243 | |
Provision | 19,712 | 6,403 | |
Charge-offs residential mortgage | (861) | (414) | |
Charge-offs home equity | (686) | (649) | |
Charge-offs consumer | (7,136) | (7,134) | |
Charge-offs commercial real estate | (409) | (849) | |
Charge-offs commercial | (4,168) | (2,482) | |
Recoveries | 5,888 | 4,952 | |
Ending balance | $ 129,159 | 125,070 | |
Net charge-offs to average loans, annualized | 0.13 % | 0.12 % | |
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 | |||||||||||||||||||||||||||||
June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||||||||||||
Average balance | Interest | Avg. | 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 | $ 3,091,324 | 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 % | $ 3,342,749 | 32,182 | 3.85 % | ||||||||||||||
Home equity loans | 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 % | 1,183,497 | 17,303 | 5.88 % | ||||||||||||||
Consumer loans | 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 % | 2,048,396 | 26,334 | 5.17 % | ||||||||||||||
Commercial real estate loans | 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 % | 3,023,762 | 45,658 | 5.97 % | ||||||||||||||
Commercial loans | 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 % | 1,770,345 | 33,229 | 7.43 % | ||||||||||||||
Total loans receivable (a) (b) (d) | 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 % | 11,368,749 | 154,706 | 5.47 % | ||||||||||||||
Mortgage-backed securities (c) | 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 % | 1,734,085 | 9,426 | 2.17 % | ||||||||||||||
Investment securities (c) (d) | 266,053 | 1,668 | 2.51 % | 263,825 | 1,599 | 2.43 % | 264,840 | 1,575 | 2.38 % | 263,127 | 1,504 | 2.29 % | 287,262 | 1,316 | 1.83 % | ||||||||||||||
FHLB stock, at cost | 17,838 | 318 | 7.15 % | 20,862 | 366 | 7.11 % | 21,237 | 392 | 7.35 % | 20,849 | 394 | 7.51 % | 25,544 | 498 | 7.84 % | ||||||||||||||
Other interest-earning deposits | 220,416 | 2,673 | 4.85 % | 243,412 | 2,416 | 3.97 % | 132,273 | 1,554 | 4.60 % | 173,770 | 2,312 | 5.29 % | 135,520 | 1,791 | 5.23 % | ||||||||||||||
Total interest-earning assets | 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 % | 13,551,160 | 167,737 | 4.98 % | ||||||||||||||
Noninterest-earning assets (e) | 924,513 | 924,466 | 930,582 | 934,593 | 907,432 | ||||||||||||||||||||||||
Total assets | $ 14,468,197 | $ 14,402,483 | $ 14,322,864 | $ 14,351,669 | $ 14,458,592 | ||||||||||||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||
Savings deposits | $ 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 % | $ 2,144,278 | 5,957 | 1.12 % | ||||||||||||||
Interest-bearing demand deposit | 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 % | 2,555,863 | 6,646 | 1.05 % | ||||||||||||||
Money market deposit accounts | 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 % | 1,957,990 | 8,601 | 1.77 % | ||||||||||||||
Time deposits | 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 % | 2,832,720 | 31,550 | 4.48 % | ||||||||||||||
Total interesting bearing deposits (g) | 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 % | 9,490,851 | 52,754 | 2.24 % | ||||||||||||||
Borrowed funds (f) | 208,342 | 2,046 | 3.94 % | 224,122 | 2,206 | 3.99 % | 222,506 | 2,246 | 4.02 % | 220,677 | 2,266 | 4.09 % | 323,191 | 3,662 | 4.56 % | ||||||||||||||
Subordinated debt | 114,661 | 1,148 | 4.00 % | 114,576 | 1,148 | 4.01 % | 114,488 | 1,148 | 4.01 % | 114,396 | 1,148 | 4.01 % | 114,308 | 1,148 | 4.02 % | ||||||||||||||
Junior subordinated debentures | 129,921 | 2,106 | 6.41 % | 129,856 | 2,098 | 6.46 % | 129,791 | 2,277 | 6.87 % | 129,727 | 2,467 | 7.56 % | 129,663 | 2,449 | 7.47 % | ||||||||||||||
Total interest-bearing liabilities | 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 % | 10,058,013 | 60,013 | 2.40 % | ||||||||||||||
Noninterest-bearing demand deposits (g) | 2,611,597 | 2,588,502 | 2,587,071 | 2,579,775 | 2,595,511 | ||||||||||||||||||||||||
Noninterest-bearing liabilities | 225,306 | 228,947 | 238,434 | 217,161 | 263,634 | ||||||||||||||||||||||||
Total liabilities | 12,832,231 | 12,785,872 | 12,733,636 | 12,778,772 | 12,917,158 | ||||||||||||||||||||||||
Shareholders' equity | 1,635,966 | 1,616,611 | 1,589,228 | 1,572,897 | 1,541,434 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ 14,468,197 | $ 14,402,483 | $ 14,322,864 | $ 14,351,669 | $ 14,458,592 | ||||||||||||||||||||||||
Net interest income/Interest rate spread FTE | 120,322 | 3.02 % | 128,685 | 3.31 % | 115,048 | 2.83 % | 112,216 | 2.72 % | 107,724 | 2.58 % | |||||||||||||||||||
Net interest-earning assets/Net interest margin FTE | $ 3,548,356 | 3.56 % | $ 3,509,594 | 3.87 % | $ 3,484,151 | 3.42 % | $ 3,435,240 | 3.33 % | $ 3,493,147 | 3.20 % | |||||||||||||||||||
Tax equivalent adjustment (d) | 878 | 867 | 851 | 914 | 883 | ||||||||||||||||||||||||
Net interest income, GAAP basis | 119,444 | 127,818 | 114,197 | 111,302 | 106,841 | ||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.36X | 1.35X | 1.35X | 1.34X | 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 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%, 1.59%, 1.68%, 1.78%, and 1.76%, respectively. |
Northwest Bancshares, Inc. and Subsidiaries Average Balance Sheet (Unaudited) (in thousands) | |||||||||||
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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. | |||||||||||
| |||||||||||
Six months ended June 30, | |||||||||||
2025 | 2024 | ||||||||||
Average balance | Interest | Avg. yield/ cost (h) | Average balance | Interest | Avg. yield/ cost (h) | ||||||
Assets | |||||||||||
Interest-earning assets: | |||||||||||
Residential mortgage loans | $ 3,123,353 | 60,372 | 3.87 % | $ 3,367,636 | 64,855 | 3.85 % | |||||
Home equity loans | 1,142,708 | 32,429 | 5.72 % | 1,194,385 | 34,596 | 5.83 % | |||||
Consumer loans | 2,011,012 | 54,921 | 5.51 % | 2,041,008 | 51,367 | 5.06 % | |||||
Commercial real estate loans | 2,858,064 | 99,973 | 6.96 % | 3,011,493 | 89,066 | 5.85 % | |||||
Commercial loans | 2,077,799 | 73,299 | 7.02 % | 1,742,506 | 65,083 | 7.39 % | |||||
Loans receivable (a) (b) (d) | 11,212,936 | 320,994 | 5.77 % | 11,357,028 | 304,967 | 5.40 % | |||||
Mortgage-backed securities (c) | 1,781,959 | 23,884 | 2.68 % | 1,725,696 | 17,370 | 2.01 % | |||||
Investment securities (c) (d) | 264,945 | 3,269 | 2.47 % | 310,507 | 2,742 | 1.77 % | |||||
FHLB stock, at cost | 19,342 | 684 | 7.13 % | 28,897 | 1,105 | 7.69 % | |||||
Other interest-earning deposits | 231,914 | 5,089 | 4.36 % | 99,252 | 2,623 | 5.23 % | |||||
Total interest-earning assets | 13,511,096 | 353,920 | 5.28 % | 13,521,380 | 328,807 | 4.89 % | |||||
Noninterest-earning assets (e) | 924,426 | 912,222 | |||||||||
| |||||||||||
Total assets | $ 14,435,522 | $ 14,433,602 | |||||||||
| |||||||||||
Liabilities and shareholders' equity | |||||||||||
Interest-bearing liabilities: | |||||||||||
Savings deposits | $ 2,203,289 | 12,973 | 1.19 % | $ 2,133,157 | 10,993 | 1.04 % | |||||
Interest-bearing demand deposits | 2,601,604 | 14,255 | 1.10 % | 2,547,343 | 12,048 | 0.95 % | |||||
Money market deposit accounts | 2,102,124 | 18,964 | 1.82 % | 1,959,661 | 16,514 | 1.69 % | |||||
Time deposits | 2,614,238 | 47,959 | 3.70 % | 2,765,351 | 60,885 | 4.43 % | |||||
Total interesting bearing deposits (g) | 9,521,255 | 94,151 | 1.99 % | 9,405,512 | 100,440 | 2.15 % | |||||
Borrowed funds (f) | 216,189 | 4,252 | 3.97 % | 396,444 | 9,370 | 4.75 % | |||||
Subordinated debt | 114,618 | 2,296 | 4.01 % | 114,267 | 2,296 | 4.02 % | |||||
Junior subordinated debentures | 129,889 | 4,204 | 6.44 % | 129,630 | 4,908 | 7.49 % | |||||
Total interest-bearing liabilities | 9,981,951 | 104,903 | 2.12 % | 10,045,853 | 117,014 | 2.34 % | |||||
Noninterest-bearing demand deposits (g) | 2,600,113 | 2,581,646 | |||||||||
Noninterest-bearing liabilities | 227,116 | 260,452 | |||||||||
| |||||||||||
Total liabilities | 12,809,180 | 12,887,951 | |||||||||
| |||||||||||
Shareholders' equity | 1,626,342 | 1,545,651 | |||||||||
| |||||||||||
Total liabilities and shareholders' equity | $ 14,435,522 | $ 14,433,602 | |||||||||
| |||||||||||
Net interest income/Interest rate spread | 249,017 | 3.16 % | 211,793 | 2.55 % | |||||||
| |||||||||||
Net interest-earning assets/Net interest margin | $ 3,529,145 | 3.72 % | $ 3,475,527 | 3.15 % | |||||||
| |||||||||||
Tax equivalent adjustment (d) | 1,755 | 1,714 | |||||||||
Net interest income, GAAP basis | 247,262 | 210,079 | |||||||||
| |||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.35X | 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 1.57% and 1.69%, respectively. |
SOURCE Northwest Bancshares, Inc.
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