Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Q1 2025 Earnings Presentation
20 slides from Northwest Bancshares's earnings presentation, Apr 29, 2025
Slide 1: First Quarter 2025 Earnings Conference Call
First Quarter 2025 Earnings Conference Call April 29, 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 Sean P. Morrow 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 March 31, 2025 FINANCIAL CENTERS 130 FOUNDED 1896 TOTAL ASSETS TOTAL LOANS TOTAL DEPOSITS $14.5B $11.2B $12.2B ROA ROE Diluted EPS NIM(1) 1.22% 10.9% $0.34 3.87% (1) Non-GAAP measure- see slides 18-20 for reconciliation 3
Slide 4: 1Q 2025 Highlights
1Q 2025 Highlights: Balance Sheet Revenue Expense Credit Management Growth Control Quality $14.5B $156MM $92MM $8.3MM Q1 Total Q1 Total Q1 Noninterest Q1 Provision for Assets Revenue Expense Credit Losses +20% +19% +1.9% .52% YOY Commercial YOY Revenue YOY Expense Q1 Nonperforming C&I Loan Growth Gr
Slide 5: 1Q 2025 Highlights
1Q 2025 Highlights: • Loans grew $36 million QoQ with a 1Q25 QoQ Δ YOY Δ continued focus on re-mixing portfolio and profitable growth EPS $ .34 30.8% 47.8% Net Interest Income $ 127.8 11.9% 23.8% • Net Interest Margin improved 45 bps QoQ due to lower cost of funds and increased Noninterest Income $
Slide 6: Loan Balances
Loan Balances Summary Comments Change in Loan Mix • Loans (EOP) grew $36 million QoQ with portfolio mix 11,205 30 121 11,177 continuing to shift more towards commercial (60) (15) • Loan yields increased 44 bps QoQ benefiting from an interest recovery but were up 4 bps on a normalized basis despite (
Slide 7: Deposit Balances
Deposit Balances Summary Comments Change in Deposit Mix • Deposit balances remained strong as average total 41 deposits were stable QoQ and grew 1.7% versus 1Q24 102 12,088 12,028 2 (42) • Customer (non-brokered) average deposits increased $68 million QoQ, while brokered deposits decreased $8 millio
Slide 8: Net Interest Margin
Net Interest Margin Summary Comments Net Interest Income (FTE) and NIM Trends • Net interest income increased 11.9% with NIM expanding to 3.87% 140.0 128.7 4.15 from 3.42% in the previous quarter, inclusive of 39 bps benefit due 107.7 112.2 115.0 120.0 104.1 3.95 to an interest recovery on a non-acc
Slide 9: Earning Asset & Funding Mix
Earning Asset & Funding Mix Earning Asset Mix Funding Mix Ending balances Total Fixed Floating Periodic Ending balances 1Q25 1Q25 Total % < 1 Year * > 1 Year * ($ Millions) % % % % ($ Millions) Securities 1,889 14% 96% 0% 4% Demand 2,641 21% 100% 0% Residential mortgage 3,122 24% 97% 2% 1% Interest-
Slide 10: Securities Portfolio
Securities Portfolio Summary Comments Securities Portfolio Treasury/Agency, • Securities Portfolio yield continues to increase as we reinvest cash Municipal, 4% 8% flow at higher yields than the runoff portfolio Corporate, 1% • Securities Portfolio yield increased 6 bps to 2.64% in the quarter • Por
Slide 11: Noninterest Income
Noninterest Income Summary Comments Noninterest Income Trend • Noninterest income decreased $11.7 million QoQ, as it returned to typical levels following the previous quarter’s VISA B shares gain and 45.00 LIHTC gain 40.06 • Noninterest income increased $400 thousand YoY, driven by higher 35.00 SBA
Slide 12: Noninterest Expense
Noninterest Expense Summary Comments Expense Mix and Efficiency Trend • Compensation and benefits increased by $1.3 million or 2.5% vs 4Q24, driven 120.0 1Q24 2Q24 3Q24 4Q24 1Q25 200.0% by seasonal payroll taxes Efficiency Ratio 68.6% 94.3% 65.2% 61.8% 58.7% • Processing and other expenses were lowe
Slide 13: Allowance for Credit Losses
Allowance for Credit Losses Summary Comments Total Loans and Allowance 11,600 1.40% • Overall ACL coverage at 1.09% is up slightly from 4Q24 due to 11,493 1.35% 11,500 growth within the commercial lending portfolio and changes 1.30% $ millions 11,400 11,345 within macroeconomic forecasts 11,295 1.25
Slide 14: Credit Quality
Credit Quality Summary Comments 30 Day Plus Loan Delinquency • Credit risk metrics remain stable and within historic levels 120.0 112.0 1.40% 100.0 • Delinquency increase QoQ is attributed to one commercial real 100.0 90.3 1.00% 1.20% 79.0 0.90% 1.00% estate loan that had previously been identified
Slide 15: Commercial/CRE Loan Distribution
Commercial/CRE Loan Distribution Summary Comments Commercial Commitments By Industry • Diverse portfolio has allowed Northwest to avoid material industry issues; Immaterial large metro office or rent controlled multi- family concentrations • Health care sector is a focus, see detail on slide 16 Real
Slide 16: Commercial Real Estate Concentration
Commercial Real Estate Concentration Total Loan Outstandings by Property Type Nursing Home Quarterly Change Retail Building, 13.7% 5 or More Unit • Outstandings reduced another $6 million to $297 million Dwelling, 13.2% • Classified outstandings increased from 14% to 19% • WARR of portfolio further
Slide 17: 2025 Outlook
2025 Outlook Net Interest Income: Increasing 1-3% YoY Net Interest Margin: Maintaining current levels between 3.30-3.40% Noninterest Income: Growing to $124-129 million Noninterest Expense: Increasing 2-4% YoY Tax Rate: Remaining flat to 2024 tax rate Net charge-offs: Trend towards normalized betwee
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation *Dollars in thousands, except per share amounts 18
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation *Dollars in thousands, except per share amounts 19
Slide 20: Non-GAAP Reconciliation – Continued
Non-GAAP Reconciliation – Continued *Dollars in thousands 20