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Adjusted net income (non-GAAP) of $51 million, or $0.35 per diluted share Net interest margin continues to expand to 3.70% 28% average commercial and industrial loan growth from prior year Credit quality remained strong with annualized net charge-offs of 0.16% and nonperforming assets of 0.70% COLUMBUS, Ohio , April 27, 2026 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NASDAQ: NWBI ) announced net income for the quarter ended March 31, 2026 of $51 million, or $0.34 per diluted share. This represents an increase of $7 million compared to the same quarter last year, when net income was $43 million, or $0.34 per diluted share, and an increase of $5 million compared to the prior quarter, when net income was $46 million, or $0.31 per share. The annualized returns on average shareholders' equity and average assets for the quarter ended March 31, 2026 were 10.86% and 1.22% compared to 10.90% and 1.22% for the same quarter last year and 9.70% and 1.10% for the prior quarter. Adjusted net income (non-GAAP) for the quarter ended March 31, 2026 was $51 million, or $0.35, per diluted share, which increased by $2 million from $49 million, or $0.33, per diluted share, in the prior quarter. This increase was primarily driven by a decrease in adjusted noninterest expense of $6 million and a decrease in provision for credit losses expense of $3 million which were partially offset by a decrease in noninterest income of $5 million. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended March 31, 2026 were 10.95% and 1.23% compared to 10.33% and 1.17% 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 May 20, 2026 to shareholders of record as of May 7, 2026. This is the 126th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of March 31, 2026, this represents an annualized dividend yield of approximately 6.3%. In addition, the Board of Directors approved a share repurchase program authorizing the Company to purchase, from time to time, up to an aggregate $50 million of its outstanding common shares over the next 24 months. This new program replaces the prior share repurchase program approved by the Board of Directors on December 13, 2012. Under the share repurchase program, shares may be repurchased from time to time in the open market or through negotiated transactions at prevailing market rates, or by other means in accordance with federal securities laws. The timing and amount of share repurchases under the stock repurchase program will depend on several factors, including the Company's stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal and regulatory requirements. Louis J. Torchio, President and CEO, Northwest Bancshares commented, "I am delighted with Northwest's strong first quarter performance delivering record net income in the Company's 130-year history, more than 16% year-over-year growth, supported by a balanced and consistent performance across the whole bank. We drove 28% year-over-year loan growth in our C&I business, with disciplined growth in our national specialty business verticals, and our deposit franchise continues as a core strength with our third consecutive quarter of lower deposit costs, one of the best-in-class among our peers. On the cost side, our expense management discipline led to a 59.4% efficiency ratio, which was 57.8% on an adjusted basis (non-GAAP), and our rigorous credit and risk management approach led to a decline in non-performing assets and overall delinquencies this quarter and lower annualized net charge-offs. We achieved these outstanding results while continuing to invest in talent, technology, and new financial centers to support our future growth." "We have another year of growth ahead of us, with our first financial centers in the Columbus market on track to open this year, and our team already delivering an impact in the market attracting new talent, customers, and deposits. The growing momentum and continuing transformation at Northwest, coupled with our consistent execution across the organization, gives me great confidence in our ability to capitalize on further opportunities for profitable and sustainable core growth." Balance Sheet Highlights Dollars in thousands Change 1Q26 vs. 1Q26 4Q25 1Q25 4Q25 1Q25 Average loans receivable $ 13,083,837 12,982,499 11,176,516 0.8 % 17.1 % Average investments 2,466,992 2,201,221 2,037,227 12.1 % 21.1 % Average deposits 14,046,735 13,771,215 12,088,371 2.0 % 16.2 % Average borrowed funds 404,547 354,894 224,122 14.0 % 80.5 % Average loans receivable increased $1.9 billion from the quarter ended March 31, 2025, primarily driven by the Penns Woods acquisition. Compared to the quarter ended December 31, 2025, average loans receivable increased $101 million driven by growth in our commercial and industrial and consumer loan portfolios. Average investments grew $430 million from the quarter ended March 31, 2025 and $266 million from the quarter ended December 31, 2025. The growth in average investments was primarily due to the Penns Woods Bancorp, Inc. ("Penns Woods") acquisition and a targeted increase in the overall securities portfolio. Average deposits grew $2.0 billion from the quarter ended March 31, 2025 primarily driven by an increase in interest-bearing account balances primarily due to the addition of the Penns Woods deposit accounts. Average deposits grew $276 million from the quarter ended December 31, 2025 across all interest-bearing products due to internal growth and the higher use of brokered CDs. Average borrowings increased $180 million compared to the quarter end March 31, 2025 due to the acquisition of long term borrowings from Penns Woods. Average borrowings increased $50 million compared to the quarter ended December 31, 2025. The increase in average borrowings is attributable to the addition of short term borrowings to fund loan and securities growth. Income Statement Highlights Dollars in thousands Change 1Q26 vs. 1Q26 4Q25 1Q25 4Q25 1Q25 Interest income $ 201,550 202,825 180,595 (0.6) % 11.6 % Interest expense 59,068 60,659 52,777 (2.6) % 11.9 % Net interest income $ 142,482 142,166 127,818 0.2 % 11.5 % Net interest margin 3.70 % 3.69 % 3.87 % Compared to the quarter ended March 31, 2025, net interest income increased $15 million and net interest margin decreased to 3.70% from 3.87% for the quarter ended March 31, 2025. This increase in net interest income resulted primarily from: A $21 million increase in interest income that was the result of higher average yields coupled with increase in average earning assets. The increase in average earnings assets was driven by the Penns Woods acquisition during the third quarter 2025. The average yield on loans declined to 5.62% for the quarter ended March 31, 2026 from 6.00% for the quarter ended March 31, 2025, which included an interest recovery of $13.1 million on a non-accrual commercial loan payoff during the quarter ended March 31, 2025. Excluding this interest recovery, the yield on loans for the quarter ended March 31, 2025 was 5.52%. The increase in yield, excluding the recovery, was driven by loan mix shift towards higher yielding commercial loans, partially offset by the impact of fourth quarter 2025 rate cuts. A $6 million increase in interest expense is the result of an increase in the average balance of interest-bearing liabilities partially offset by a decline in the cost of deposits. The cost of interest-bearing liabilities decreased to 2.06% for the quarter ended March 31, 2026 from 2.15% for the quarter ended March 31, 2025. Compared to the quarter ended December 31, 2025, net interest income increased slightly and net interest margin increased to 3.70% for the quarter ended March 31, 2026 from 3.69%. This increase in net interest income resulted from the following: A $1 million decrease in interest income driven by growth in the average interest earning balances and an increase on investments yields compared to the prior quarter which was offset by a decrease in loan yields. The average yield on loans decreased to 5.62% from 5.65% and average investment yields increased to 3.17% from 2.98% for the quarter ended December 31, 2025. The decrease in loan yields was driven by a decline in the accretion of loan fair value marks, based on timing of loan payoffs, coupled the impact of the fourth quarter 2025 rate cuts. A $2 million decrease in interest expense driven by lower interest expense on deposits which was partially offset by an increase in interest expense on borrowings. Average cost of interest-bearing deposits declined compared to the prior quarter to 1.89% from 1.97% for the quarter ended December 31, 2025 while average cost of borrowings increased to 3.88% from 3.83% for the quarter ended December 31, 2025. Dollars in thousands Change 1Q26 vs. 1Q26 4Q25 1Q25 4Q25 1Q25 Provision for credit losses - loans $ 4,954 5,743 8,256 (13.7) % (40.0) % Provision for credit losses - unfunded commitments (585) 1,981 (345) (129.5) % 69.6 % Total provision for credit losses expense $ 4,369 7,724 7,911 (43.4) % (44.8) % The total provision for credit losses for the quarter ended March 31, 2026 was $4 million primarily driven by growth in our commercial lending portfolio and increased uncertainty in the economic outlook. Total provision for credit losses for the quarter ended December 31, 2025 was $8 million driven by growth in our commercial lending portfolio and net charge-offs in the period. The Company saw an increase in classified loans to $498 million, or 3.81% of total loans, at March 31, 2026 from $279 million, or 2.49% of total loans, at March 31, 2025 and $453 million, or 3.49% of total loans, at December 31, 2025. The increase from the prior quarter was driven by changes in our commercial portfolio which increased $30 million. The increase from the prior year was primarily due to classified loans acquired in the Penns Woods acquisition. Dollars in thousands Change 1Q26 vs. 1Q26 4Q25 1Q25 4Q25 1Q25 Noninterest income: Gain on sale of investments $ 11 142 — (92.3) % NA Gain on sale of SBA loans 1,186 437 1,238 171.4 % (4.2) % Service charges and fees 17,118 17,377 14,987 (1.5) % 14.2 % Trust and other financial services income 8,618 8,416 7,910 2.4 % 9.0 % Gain on real estate owned, net 70 148 84 (52.7) % (16.7) % Income from bank-owned life insurance 2,042 8,269 1,331 (75.3) % 53.4 % Mortgage banking income 329 379 696 (13.2) % (52.7) % Other operating income 3,208 2,609 2,109 23.0 % 52.1 % Total noninterest income $ 32,582 37,777 28,355 (13.8) % 14.9 % Noninterest income increased $4 million from the quarter ended March 31, 2025 driven by an increase in service charges and fees driven by deposit related fees based on customer activity related to the Penns Woods acquisition and other operating income driven by a gain on equity method investments during the current quarter. Noninterest income decreased by $5 million from the quarter ended December 31, 2025, due to a decrease in income from bank-owned life insurance due to a large claim recognized in the prior quarter. Dollars in thousands Change 1Q26 vs. 1Q26 4Q25 1Q25 4Q25 1Q25 Noninterest expense: Personnel expense $ 58,330 65,143 54,540 (10.5) % 6.9 % Non-personnel expense 45,708 48,378 37,197 (5.5) % 22.9 % Total noninterest expense $ 104,038 113,521 91,737 (8.4) % 13.4 % Noninterest expense increased from the quarter ended March 31, 2025 due to a $4 million increase in personnel expenses driven by an increase in core compensation and benefits expense due to the addition of Penns Woods employees. Additionally, non-personnel expense increased by $9 million due an increase of $2 million in amortization of intangible expense related to the acquisition coupled with increases in operating and processing expenses due to the addition of the Penns Woods branches to our footprint. Noninterest expense decreased from the quarter ended December 31, 2025 due to declines in personnel and non-personnel expenses. Personnel expense decreased $7 million driven by lower incentive compensation and medical expenses. Non-personnel expense decreased by $3 million due to an decrease of $4 million in merger and restructuring expenses in the quarter ended March 31, 2026, partly offset by a $2 million increase in premises and occupancy expenses based on seasonal operating expenses during the quarter. Dollars in thousands Change 1Q26 vs. 1Q26 4Q25 1Q25 4Q25 1Q25 Income before income taxes $ 66,657 58,698 56,525 13.6 % 17.9 % Income tax expense 16,121 12,985 13,067 24.2 % 23.4 % Net income $ 50,536 45,713 43,458 10.6 % 16.3 % The provision for income taxes increased by $3 million from the quarter ended March 31, 2025 and the quarter ended December 31, 2025 primarily due to the quarterly change in income before income taxes. Net income increased from the quarter ended March 31, 2025 and the quarter ended December 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 March 31, 2026, Northwest operated 151 full-service financial centers and ten free standing drive-up facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.'s common stock is listed on The Nasdaq Stock Market LLC ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed online at www.northwest.com . Investor Contact: Michael Perry, Corporate Development & Strategy (814) 726-2140 Media Contact: Ian Bailey, External Communications (380) 400-2423 # # # This release may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words "believe," "anticipate," "estimate," "expect," "project," "target," "goal" and similar expressions are intended to identify forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements include but are not limited to: statements of our goals, intentions and expectations; statements regarding our financial condition and results of operations, including statements related to our earnings outlook; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to the following: the possibility that any of the anticipated benefits of the merger with Penns Woods will not be realized or will not be realized within the expected time period; the effect of the merger on the combined company's customer and employee relationships and operating results; and other factors that may affect the results of operations and financial condition of the combined company; inflation and changes in the interest rate environment that reduce our margins, our loan origination, or the fair value of financial instruments; changes in asset quality, including increases in default rates on loans and higher levels of nonperforming loans and loan charge-offs generally; changes in laws, government regulations or supervision, examination and enforcement priorities affecting financial institutions, including as part of the regulatory reform agenda of the Trump administration, as well as changes in regulatory fees and capital requirements; changes in federal, state, or local tax laws and tax rates; general economic conditions, either nationally or in our market areas, that are different than expected, including inflationary or recessionary pressures or those related to changes in monetary, fiscal, regulatory, tariff and international trade policies of the U.S. government, including policies of the U.S. Department of Treasury and Board of Governors of the Federal Reserve System, and any related increases in compliance and other costs; trade disputes, barriers to trade or the emergence of trade restrictions and the resulting impacts on market volatility and global trade; growing fiscal deficits; potential recession or slowing of growth in the U.S., Europe and other regions; developments in the Middle East; adverse changes in the securities and credit markets; instability or breakdown in the financial services sector, including failures or rumors of failures of other depository institutions, along with actions taken by governmental agencies to address such turmoil; cyber-security concerns, including an interruption or breach in the security of our website or other information systems; technological changes that may be more difficult or expensive than expected; changes in liquidity, including the size and composition of our deposit portfolio, and the percentage of uninsured deposits in the portfolio; the ability of third-party providers to perform their obligations to us; competition among depository and other financial institutions, including with respect to deposit gathering, service charges and fees; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to manage our internal growth and our ability to successfully integrate acquired entities, businesses or branch offices; changes in consumer spending, borrowing and savings habits; our ability to continue to increase and manage our commercial and personal loans; possible impairments of securities held by us, including those issued by government entities and government sponsored enterprises; changes in the value of our goodwill or other intangible assets; the impact of the economy on our loan portfolio (including cash flow and collateral values), investment portfolio, customers and capital market activities; our ability to receive regulatory approvals for proposed transactions or new lines of business; the effects of any federal government shutdown or the inability of the federal government to manage debt limits; changes in the financial performance and/or condition of our borrowers; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Securities and Exchange Commission (the "SEC"), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board ("FASB") and other accounting standard setters; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the effect of global or national war, conflict, or terrorism; our ability to manage market risk, credit risk and operational risk; the disruption to local, regional, national and global economic activity caused by infectious disease outbreaks, and the significant impact that any such outbreaks may have on our growth, operations and earnings; the effects of natural disasters and extreme weather events; changes in our ability to continue to pay dividends, either at current rates or at all; our ability to retain key employees; and our compensation expense associated with equity allocated or awarded to our employees. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, expected or projected. These and other risk factors are more fully described in this presentation and in the Northwest Bancshares, Inc. (the "Company") Annual Report on Form 10-K for the year ended December 31, 2025 under the section entitled "Item 1A - Risk Factors," and from time to time in other filings made by the Company with the SEC. These forward-looking statements speak only at the date of the presentation. The Company expressly disclaims any obligation to publicly release any updates or revisions to reflect any change in the Company's expectations with regard to any change in events, conditions or circumstances on which any such statement is based. Use of Non-GAAP Financial Measures This release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses these "non-GAAP" measures in its analysis of the Company's performance. Management believes these non-GAAP financial measures allow for better comparability of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. See the pages 9 and 10 of this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures where applicable. Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) (dollars in thousands, except per share amounts) March 31, 2026 December 31, 2025 March 31, 2025 Assets Cash and cash equivalents $ 286,707 233,647 353,203 Marketable securities available-for-sale (amortized cost of $1,884,060, $1,710,978 and $1,304,760, respectively) 1,746,919 1,586,382 1,153,385 Marketable securities held-to-maturity (fair value of $567,470, $605,929 and $637,803, respectively) 646,661 683,369 735,909 Total cash and cash equivalents and marketable securities 2,680,287 2,503,398 2,242,497 Loans held-for-sale 16,846 22,437 71,206 Residential mortgage loans 3,035,984 3,100,780 3,121,647 Home equity loans 1,495,800 1,507,532 1,141,577 Consumer loans 2,660,567 2,563,890 2,081,469 Commercial real estate loans 3,161,314 3,296,902 2,792,734 Commercial and industrial loans 2,702,283 2,538,212 2,079,018 Total loans receivable 13,055,948 13,007,316 11,216,445 Allowance for credit losses (150,045) (150,212) (122,809) Loans receivable, net 12,905,903 12,857,104 11,093,636 FHLB stock, at cost 32,781 36,628 17,941 Accrued interest receivable 57,221 56,291 45,949 Real estate owned, net 65 76 80 Premises and equipment, net 141,477 140,381 123,138 Bank-owned life insurance 292,103 294,386 254,444 Goodwill 444,330 444,330 380,997 Other intangible assets, net 37,478 39,667 2,334 Other assets 298,558 371,919 221,505 Total assets $ 16,907,049 16,766,617 14,453,727 Liabilities and shareholders' equity Liabilities Noninterest-bearing demand deposits $ 3,121,044 3,123,229 2,640,943 Interest-bearing demand deposits 2,937,654 2,995,759 2,590,568 Money market deposit accounts 2,734,781 2,540,818 2,124,293 Savings deposits 2,444,799 2,366,513 2,221,901 Time deposits 2,975,026 2,916,698 2,596,451 Total deposits 14,213,304 13,943,017 12,174,156 Borrowed funds 350,884 446,283 197,270 Subordinated debt 114,800 114,800 114,625 Junior subordinated debentures 130,158 130,093 129,899 Advances by borrowers for taxes and insurance 40,127 37,309 44,121 Accrued interest payable 8,585 6,846 6,843 Other liabilities 144,884 197,845 157,858 Total liabilities 15,002,742 14,876,193 12,824,772 Shareholders' equity Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares issued — — — Common stock, $0.01 par value: 500,000,000 shares authorized, 146,302,025, 146,107,964 and 127,736,303 shares issued and outstanding, respectively 1,463 1,461 1,277 Additional paid-in capital 1,271,372 1,270,444 1,035,093 Retained earnings 710,351 689,210 691,066 Accumulated other comprehensive loss (78,879) (70,691) (98,481) Total shareholders' equity 1,904,307 1,890,424 1,628,955 Total liabilities and shareholders' equity $ 16,907,049 16,766,617 14,453,727 Equity to assets 11.26 % 11.27 % 11.27 % Tangible common equity to tangible assets* 8.66 % 8.64 % 8.85 % Book value per share $ 13.02 12.94 12.75 Tangible book value per share* $ 9.72 9.63 9.75 Closing market price per share $ 12.69 12.00 12.02 Full time equivalent employees 2,170 2,169 1,996 Number of banking offices 161 161 141 * Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items. Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts) Quarter ended March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Interest income: Loans receivable $ 180,549 184,047 177,723 154,914 164,638 Mortgage-backed securities 16,999 14,071 12,668 12,154 11,730 Taxable investment securities 1,601 1,324 1,183 999 933 Tax-free investment securities 762 777 752 512 512 FHLB stock dividends 768 701 652 318 366 Interest-earning deposits 871 1,905 1,700 2,673 2,416 Total interest income 201,550 202,825 194,678 171,570 180,595 Interest expense: Deposits 51,083 52,947 51,880 46,826 47,325 Borrowed funds 7,985 7,712 6,824 5,300 5,452 Total interest expense 59,068 60,659 58,704 52,126 52,777 Net interest income 142,482 142,166 135,974 119,444 127,818 Provision for credit losses - loans 4,954 5,743 31,394 11,456 8,256 Provision for credit losses - unfunded commitments (585) 1,981 (189) (2,712) (345) Net interest income after provision for credit losses 138,113 134,442 104,769 110,700 119,907 Noninterest income: Gain on sale of investments 11 142 36 — — Gain on sale of SBA loans 1,186 437 341 819 1,238 Service charges and fees 17,118 17,377 16,911 15,797 14,987 Trust and other financial services income 8,618 8,416 8,040 7,948 7,910 Gain on real estate owned, net 70 148 132 258 84 Income from bank-owned life insurance 2,042 8,269 1,751 1,421 1,331 Mortgage banking income 329 379 1,003 1,075 696 Other operating income 3,208 2,609 3,984 3,620 2,109 Total noninterest income 32,582 37,777 32,198 30,938 28,355 Noninterest expense: Compensation and employee benefits 58,330 65,143 63,014 55,213 54,540 Premises and occupancy costs 9,863 8,170 7,707 7,122 8,400 Office operations 3,875 4,217 3,495 2,910 2,977 Collections expense 878 856 776 838 328 Processing expenses 16,806 16,454 15,072 12,973 13,990 Marketing expenses 1,668 1,827 1,932 3,018 1,880 Federal deposit insurance premiums 2,895 3,538 3,361 2,296 2,328 Professional services 3,523 3,366 3,010 3,990 2,756 Amortization of intangible assets 2,189 2,257 1,974 436 504 Merger, asset disposition and restructuring expense 631 4,160 31,260 6,244 1,123 Other expenses 3,380 3,533 1,897 2,500 2,911 Total noninterest expense 104,038 113,521 133,498 97,540 91,737 Income before income taxes 66,657 58,698 3,469 44,098 56,525 Income tax expense 16,121 12,985 302 10,423 13,067 Net income $ 50,536 45,713 3,167 33,675 43,458 Basic earnings per share $ 0.35 0.31 0.02 0.26 0.34 Diluted earnings per share $ 0.34 0.31 0.02 0.26 0.34 Weighted average common shares outstanding - diluted 146,850,635 146,703,966 141,175,516 128,114,509 128,299,013 Annualized return on average equity 10.86 % 9.70 % 0.69 % 8.26 % 10.90 % Annualized return on average assets 1.22 % 1.10 % 0.08 % 0.93 % 1.22 % Annualized return on average tangible common equity* 14.59 % 13.10 % 0.90 % 10.78 % 14.29 % Efficiency ratio Full story available on Benzinga.com
