Northwest Bancshares, Inc. · NASDAQ:NWBI
Northwest Bancshares — Q2 2025 Earnings Presentation
22 slides from Northwest Bancshares's earnings presentation, Jul 30, 2025
Slide 1: Second Quarter 2025 Earnings Conference Call
Second Quarter 2025 Earnings Conference Call July 30, 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 June 30, 2025 FINANCIAL CENTERS 131 FOUNDED 1896 TOTAL LOANS TOTAL DEPOSITS NIM* TOTAL ASSETS $14.5B $11.3B $12.2B 3.56% (non-GAAP)* ROA ROE Diluted EPS Diluted EPS 0.93% 8.26% $0.26 $0.30 * Non-GAAP financial measure; See "Use of non-GAAP Finan
Slide 4: Post Merger Metrics At-A-Glance
Post Merger Metrics At-A-Glance July 28, 2025 FINANCIAL CENTERS 151 FOUNDED 1896 TOTAL ASSETS(1) TOTAL LOANS(1) TOTAL DEPOSITS(1) $16.8B $13.2B $13.9B 4 (1) Data for quarter ended June 30, 2025
Slide 5: Penns Woods Acquisition Update
Penns Woods Acquisition Update Actual Results and Merger Update Category Expectations at Updated Expectations at Announcement Closing Closing Date 3Q 2025 7/25/2025 • Successfully closed merger on 7/25/25 and completed customer and data conversion over the weekend of July 26th and 27th NWBI Stock Pr
Slide 6: 2Q 2025 Highlights
2Q 2025 Highlights: Balance Sheet Revenue Funding Credit Management Growth Cost Cost $14.5B $150MM 1.55% 0.18% Q2 Total Q2 Total Q2 Cost of Q2 Annualized Net Assets Revenue Deposits Charge-offs to Average Loans +19% +53.5% 2.09% 1.14% YOY Commercial YOY Revenue Q2 Cost of Q2 Allowance for C&I Loan G
Slide 7: 2Q 2025 Highlights
2Q 2025 Highlights: 2Q25 QoQ Δ YOY Δ • Loans grew $72 million QoQ with a continued EPS $.26 -$.08 $.22 focus on re-mixing the portfolio and profitable growth EPS Adj.* $.30 -$.05 $.03 Net Interest Income $119.4 -6.6% 11.8% • Net interest margin improved to 3.56% from 3.48% last quarter after adjusti
Slide 8: Loan Balances
Loan Balances 11,500 Summary Comments 11,400 Combined Loan Average Balances 11,300 • Average loans grew $72 million QoQ with portfolio mix 125 49 11,249 continuing to shift more towards commercial 11,200 11,177 (43) • Loan yields continue to be stable in 2Q25 at 5.55% 6 11,100 (64) $ Millions • Aver
Slide 9: Deposit Balances
Deposit Balances Summary Comments Change in Deposit Mix 12,300 • Deposit balances remained strong as average total 18 12,200 38 12,154 deposits grew $66 million QoQ versus 1Q25 17 12,088 23 (30) 12,100 • Customer (non-brokered) average deposits increased $107 million QoQ, while brokered deposits dec
Slide 10: Net Interest Margin
Net Interest Margin Summary Comments Net Interest Income (FTE) and NIM (FTE) Trends 140.0 6.00% • Net interest income increased 4.1% with NIM expanding to 3.56% 128.7 from 3.48% in the previous quarter after adjusting for the benefit of 130.0 120.3 5.50% an interest recovery on a non-accrual commerc
Slide 11: Earning Asset & Funding Mix
Earning Asset & Funding Mix Earning Asset Mix Funding Mix Ending balances Total Fixed Floating Periodic Ending balances 2Q25 2Q25 Total % < 1 Year * > 1 Year * ($ Millions) % % % % ($ Millions) Securities 1,914 14% 96% 0% 4% Demand 2,643 21% 100% 0% Residential mortgage 3,052 23% 97% 2% 1% Interest-
Slide 12: Securities Portfolio
Securities Portfolio Summary Comments Securities Portfolio • Securities portfolio yield continues to increase as we reinvest cash Municipal, 3% Treasury/Agency, flow at higher yields than the runoff portfolio 8% Corporate, 2% • Securities portfolio yield increased 8 bps to 2.72% in the quarter • Por
Slide 13: Noninterest Income
Noninterest Income Summary Comments Noninterest Income Trend • Noninterest income increased $2.6 million QoQ, driven by an increase in 45.0 other operating income primarily from a gain on equity method investments and from growth in service charges and fees 40.1 • Noninterest income increased $40 mi
Slide 14: Noninterest Expense
Noninterest Expense Summary Comments Expense Mix and Efficiency Trend • Professional services increased by $1.2 million vs 1Q25 and merger and 2Q24 3Q24 4Q24 1Q25 2Q25 restructuring expenses increased by $5.1 million vs 2Q24 due to preparation Efficiency Ratio 120.0 94.3% 65.2% 61.8% 58.7% 64.9% 200
Slide 15: Allowance for Credit Losses
Allowance for Credit Losses Summary Comments Total Loans and Allowance 11,600 1.40% • Overall ACL coverage at 1.14% is up slightly from 1Q25, with provision expense of $11.5 million, due to downgrades and 11,500 $ Millions 1.30% individual assessments within the commercial portfolio, offset by 11,40
Slide 16: Credit Quality
Credit Quality Summary Comments • Total delinquency remained stable at 1.00% QoQ • 2Q25 increase in classified loans was primarily driven by the healthcare portfolio, a few larger C&I loans and construction loan portfolio • Nonperforming assets increased $27.4 million QoQ, with NPAs / total assets i
Slide 17: Credit Quality Breakdown
Credit Quality Breakdown Summary Comments Classified Loans 600.0 7.00% 518.2 • 2Q25 increase in classified loans is a result of three primary 500.0 6.00% items: 5.00% 400.0 o Return of remaining LTHC portfolio to held for investment 319.9 $ Millions 256.8 272.3 279.1 4.00% of $61MM (5 borrowers) and
Slide 18: Commercial Loan Distribution and CRE Concentration
Commercial Loan Distribution and CRE Concentration Summary Comments Commercial Commitments By Industry • Diverse portfolio has allowed Northwest to avoid material industry issues; Real Estate and immaterial large metro office or rent controlled multi-family concentrations Rental and All Others • Mat
Slide 19: 2025 Outlook
2025 Outlook Northwest Standalone for 3Q25 and 4Q25 Net Interest Income & NIM: Maintain a 350 Bps margin and a stable NII Noninterest Income: Expected to be $30MM per quarter Noninterest Expense: Expected to be $93MM to $95MM per quarter Tax Rate: Remaining flat to 2024 tax rate Net charge-offs: NCO
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter ended Six months ended June 30, June 30, March 31, June 30, 2025 2024 2025 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 expens
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation June 30, March 31, June 30, 2025 2025 2024 Tangible common equity to assets Total shareholders’ equity $ 1,642,068 1,628,955 1,556,598 Less: goodwill and intangible assets (382,894) (383,331) (384,951) Tangible common equity $ 1,259,174 1,245,624 1,171,647 Total assets $ 14,4
Slide 22: Non-GAAP Reconciliation – Continued
Non-GAAP Reconciliation – Continued Quarter ended June 30, March 31, December 31, September 30, 2025 2025 2024 2024 Annualized return on average tangible common equity Net income $ 33,675 43,458 32,750 33,618 Average shareholders’ equity 1,635,966 1,616,611 1,589,228 1,572,897 Less: average goodwill