Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Q3 2025 Earnings Presentation
23 slides from Northwest Bancshares's earnings presentation, Oct 28, 2025
Slide 1: Third Quarter 2025 Earnings Conference Call
Third Quarter 2025 Earnings Conference Call October 28, 2025 Louis J. Torchio T.K. Creal President and Chief Executive Officer Chief Credit Officer Douglas M. Schosser Michael D. Perry Chief Financial Officer Corporate Development & Strategy Investor Relations Chad Wheeler Treasurer
Slide 2: Forward-looking Statements and Additional Information
Forward-looking Statements and Additional Information The information contained in this presentation may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words “believe,” “anticipate,” “estimate,” “expect,” “project,” “target,” “goal” and simila
Slide 3: Northwest Bancshares At-A-Glance
Northwest Bancshares At-A-Glance For the quarter ended September 30, 2025 FINANCIAL CENTERS 151 FOUNDED 1896 TOTAL LOANS TOTAL DEPOSITS NIM* TOTAL ASSETS $16.4B $12.9B $13.7B 3.65% ROA ROE Diluted EPS 0.08% 0.69% $0.02 ROA (non-GAAP)* ROE (non-GAAP)* Diluted EPS (non-GAAP)* 1.01% 8.89% $0.29 3 * Non
Slide 4: 3Q 2025 Highlights
3Q 2025 Highlights Balance Sheet Net Interest Earnings per Revenue Growth Management Income Share (GAAP) Adjusted* $16.4B $168.1 MM 3.65% $.61 $.93 3Q Total Assets 3Q Total Revenue 3Q NIM* 3Q YTD EPS (A Record Quarter) (GAAP) Adjusted* +25.3% +20.8% +22.2% 15% 21% YOY Avg. Commercial YOY Revenue Gro
Slide 5: 3Q 2025 Highlights
3Q 2025 Highlights Metric 3Q25 QoQΔ YoYΔ Summary Comments EPS $.02 -$.24 -$.24 • Net interest income grew $16.5 million or 13.9% QoQ with net EPS Adj.* $.29 -$.01 $.03 interest margin* improving to 3.65% benefiting from higher average loan yields, increased average earning assets from the Net Intere
Slide 6: Penns Woods Acquisition Update
Penns Woods Acquisition Update Merger Update • Successfully completed merger with Penns Woods on 7/25/25 including customer and data conversion Expectations at Category Actual Results Announcement • All acquired branches operating under the Northwest Bank name Closing Date 3Q 2025 7/25/2025 • All te
Slide 7: Penns Woods Acquisition Update
Penns Woods Acquisition Update Purchase Accounting Preliminary Impacts • Loan mark accretion was $2.7 million in 3Q25 and projected to Acquired Penns Woods Deal Summary $ Millions be $1.9 million in 4Q25 Total deal consideration $233.8 • Day 1 non-PCD and unfunded provision expense was $20.7 million
Slide 8: Loan Balances
Loan Balances 14,000 Summary Comments Combined Loan Average Balances 13,500 13,000 • Average loans grew $1.32 billion QoQ benefiting from the 177 12,569 acquired balance sheet 12,500 541 • Loan yield increased to 5.63% in 3Q25 growing by 8 bps QoQ 12,000 257 $ Millions 276 • Average commercial loans
Slide 9: Deposit Balances
Deposit Balances Summary Comments Change in Deposit Mix 220 13,296 • Deposit balances remained strong as average total 271 131 deposits grew by $1.14 billion QoQ benefiting from the 172 348 acquired balance sheet 12,154 $ Millions • Customer (non-brokered) average deposits increased $1.14 billion Qo
Slide 10: Net Interest Margin
Net Interest Margin Summary Comments Net Interest Income (FTE) and NIM (FTE) Trends 160 5.50% • Net interest income increased 13.8% QoQ with NIM* expanding 137 129 9bps to 3.65% in 3Q25 140 120 112 115 5.00% 120 2 • Purchase accounting accretion net impact equates to 6 bps 4.50% 100 135 $ Millions •
Slide 11: Earning Asset & Funding Mix
Earning Asset & Funding Mix Earning Asset Mix Funding Mix Ending balances Total Fixed Floating Periodic Ending balances 3Q25 3Q25 Total % < 1 Year * > 1 Year * ($ Millions) % % % % ($ Millions) Securities 1,973 13% 96% 0% 4% Demand 3,090 22% 100% 0% Residential mortgage 3,158 21% 94% 4% 2% Interest-
Slide 12: Securities Portfolio
Securities Portfolio Summary Comments Securities Portfolio(1) Treasury/Agency, • Securities Portfolio continues to be a strong source of liquidity 8.1% • Portfolio yield continues to increase as we reinvest cash flow at higher yields than the runoff portfolio, yield increased 10 bps to 2.82 in the M
Slide 13: Noninterest Income
Noninterest Income Comments Noninterest Income Trend • Noninterest income increased $1.3 million QoQ, driven by an increase in service charges and fees and other operating income primarily from a gain on equity method investments 45 • Noninterest income increased 15.7% or $4.4 million YoY, driven by
Slide 14: Noninterest Expense
Noninterest Expense Comments Expense Mix and Efficiency Trend • Adjusted efficiency ratio* was 59.6% in 3Q25 continuing the 3Q24 4Q24 1Q25 2Q25 3Q25 improvement in expense management over the last year Efficiency Ratio 65.24% 61.80% 58.74% 64.86% 79.38% Adj. Efficiency Ratio* 64.78% 59.61% 57.70% 60
Slide 15: Allowance for Credit Losses
Allowance for Credit Losses Summary Comments Total Loans and Allowance 14,000 12,941 1.50% • Overall ACL coverage at 1.22% is up from 2Q25, with provision 11,295 11,180 11,216 11,342 12,000 1.40% expense of $11.2 million (net of Day 1 non-PCD) vs. $11.5 million in 10,000 2Q25, due to individual asse
Slide 16: Credit Quality
Credit Quality Overview • Credit risk metrics are within internal expectations given the impact of the acquired loans • Total delinquency increased from 1.00% to 1.10%, mostly from the consumer book which increased from 0.62% to 0.70% • NPAs increased by $26.3MM, approximately $17MM of which is attr
Slide 17: Credit Quality Breakdown
Credit Quality Breakdown Summary Comments Classified Loans • 3Q25 increase in classified loans is a result of the acquired loan 600.0 518.2 527.0 7.00% 6.00% book, but declined as a percentage of total loans 500.0 5.00% • Northwest legacy classified loan book decreased $73.6MM 400.0 319.9 272.3 279.
Slide 18: Current Outlook
Current Outlook 4Q25 Outlook(1) Net Interest Margin*: Expect to maintain a mid 360s bps level margin (including expected projected contractual purchase accounting loan accretion of $1.9MM in 4Q25) Noninterest Income: Expected to be in the range of $32MM to $33MM Noninterest Expense: Expected to be i
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1 Quarter ended Nine months ended September 30, September 30, June 30, September 30, 2025 2024 2025 2025 2024 Reconciliation of net income to adjusted net income: Net income (GAAP) $ 3,167 33,675 33,618 80,300 67,528 Non-GAAP adjustments Add: merger, asset disposition and res
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2 September 30, September 30, 2025 June 30, 2025 2024 Tangible common equity to assets Total shareholders’ equity $ 1,859,344 1,642,068 1,591,325 Less: goodwill and intangible assets (489,934) (382,894) (384,360) Tangible common equity $ 1,369,410 1,259,174 1,206,965 Total as
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation 3 Quarter ended September 30, June 30, September 30, 2025 2025 2024 Annualized return on average tangible common equity Net income $ 3,167 33,675 33,618 Average shareholders’ equity 1,809,395 1,635,966 1,572,897 Less: average goodwill and intangible assets (409,875) (383,152)
Slide 22: Appendix
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Slide 23: Commercial Loan Distribution & CRE Concentration
Commercial Loan Distribution & CRE Concentration Summary Comments Commercial Commitments by Industry • Diverse portfolio has allowed Northwest to avoid material industry issues; All Others immaterial large metro office or rent controlled multi-family concentrations ~16 other industries Real Estate a