Northwest Bancshares, Inc. Announces Fourth Quarter 2025 net income of $46 million, or $0.31 per diluted share
Adjusted net income (non-GAAP) of $49 million, or $0.33 per diluted share
Net interest margin expands to 3.69% amid solid performance
Year to date EPS of $0.92 per diluted share, 16% growth from the prior year
Record quarterly total revenue of $180 million, 17% growth from the prior year
COLUMBUS, Ohio, Jan. 26, 2026 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NASDAQ:NWBI) announced net income for the quarter ended December 31, 2025 of $46 million, or $0.31 per diluted share. This represents an increase of $13 million compared to the same quarter last year, when net income was $33 million, or $0.26 per diluted share, and an increase of $43 million compared to the prior quarter, when net income was $3 million, or $0.02 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended December 31, 2025 were 9.70% and 1.10% compared to 8.20% and 0.91% for the same quarter last year and 0.69% and 0.08% from the prior quarter.
Adjusted net income (non-GAAP) for the quarter ended December 31, 2025 was $49 million, or $0.33 per diluted share, which increased by $8 million from $41 million, or $0.29 per diluted share in the prior quarter. This increase was driven by an increase in net interest income of $6 million, coupled with an increase in noninterest income of $6 million and a decrease in adjusted provision expense partially offset by an increase in adjusted noninterest expense of $7 million for the quarter ended December 31, 2025. All quarterly results were impacted by a full quarter of the acquisition of Penns Woods Bancorp, Inc. ("Penns Woods") which closed in late July 2025. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended December 31, 2025 were 10.33% and 1.17% compared to 8.89% and 1.01% 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 February 18, 2026 to shareholders of record as of February 5, 2026. This is the 125th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of December 31, 2025, this represents an annualized dividend yield of approximately 6.7%.
Louis J. Torchio, President and CEO, Northwest Bancshares commented, "2025 was a transformational year for Northwest Bank. We closed on a significant acquisition, drove record revenue of $655 million for the full year, and continued to expand the firm's net interest margin. Coupled with our demonstrated expense management discipline through the closing and integration of our sizeable acquisition, we drove double digit EPS growth, all while investing in the talent, technology, and new financial centers and products to support our future growth."
"I am excited at our prospects in 2026, and anticipate another year of record revenue growth, as we build out our consumer franchise in Columbus, deepen relationships in our existing core markets, and continue to build market share in our commercial lines of business."
Balance Sheet Highlights
Dollars in thousands
Change 4Q25 vs.
4Q25
3Q25
4Q24
3Q25
4Q24
Average loans receivable
$ 12,982,499
12,568,497
11,204,781
3.3 %
15.9 %
Average investments
2,201,221
2,111,928
2,033,991
4.2 %
8.2 %
Average deposits
13,771,215
13,296,651
12,028,417
3.6 %
14.5 %
Average borrowed funds
354,894
347,357
222,506
2.2 %
59.5 %
Average loans receivable increased $1.8 billion from the quarter ended December 31, 2024, primarily driven by the Penns Woods acquisition. Compared to the third quarter of 2025, average loans receivable increased by $414 million due to a full quarter impact from the acquisition coupled with internal loan growth.
Average investments increased $167 million from the quarter ended December 31, 2024 and $89 million from the quarter ended September 30, 2025. The growth in average investments was primarily due to the Penns Woods acquisition and a targeted increase in the overall securities portfolio during the quarter.
Average deposits grew $1.7 billion from the quarter ended December 31, 2024 and $475 million from the third quarter 2025. The growth in both periods was primarily driven by an increase in interest-bearing account balances primarily due to the addition of the Penns Woods deposit accounts.
Average borrowings increased $132 million compared to the quarter ended December 31, 2024 due to the acquisition of long term borrowings from Penns Woods. Average borrowings increased $8 million compared to the quarter ended September 30, 2025. The increase is primarily attributable to the acquired long term borrowings and additional short term borrowings to fund loan and securities growth.
Income Statement Highlights
Dollars in thousands
Change 4Q25 vs.
4Q25
3Q25
4Q24
3Q25
4Q24
Interest income
$ 202,825
194,678
170,722
4.2 %
18.8 %
Interest expense
60,659
58,704
56,525
3.3 %
7.3 %
Net interest income
$ 142,166
135,974
114,197
4.6 %
24.5 %
Net interest margin (FTE)
3.69 %
3.65 %
3.42 %
Compared to the quarter ended December 31, 2024, net interest income increased $28 million and net interest margin increased to 3.69% from 3.42% for the quarter ended December 31, 2024. This increase in net interest income resulted primarily from:
A $32 million increase in interest income that was the result of higher average yields coupled with an increase in average earning assets. The increase in average earning assets was driven by the Penns Woods acquisition during the third quarter. The average yield on loans improved to 5.65% for the quarter ended December 31, 2025 from 5.56% for the quarter ended December 31, 2024 driven by a loan mix shift towards higher yielding commercial loans along with the accretion of loan fair value marks from the acquisition of $4.6 million during the quarter.
A $4 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 2.14% for the quarter ended December 31, 2025 from 2.27% for the quarter ended December 31, 2024.
Compared to the quarter ended September 30, 2025, net interest income increased $6 million and net interest margin increased to 3.69% for the quarter ended December 31, 2025 from 3.65% for the quarter ended September 30, 2025. This increase in net interest income resulted from the following:
A $8 million increase in interest income driven by growth in the average loan and investment balances and an increase on loan and investments yields compared to the prior quarter. The average yield on loans increased to 5.65% from 5.63% and average investment yields increased to 2.98% from 2.81% for the quarter ended September 30, 2025. The increases were primarily driven by the Penns Woods acquisition, including the accretion of loan fair value marks, coupled with a continued shift in loan mix towards higher yielding commercial loans and adding new securities at rates above the existing portfolio average.
A $2 million increase in interest expense driven higher average balances on both deposits and borrowings from the Penns Woods acquisition. Average cost of interest-bearing deposits decreased slightly compared to the prior quarter to 1.97% from 1.99% for the September 30, 2025 while average cost of borrowings declined to 3.83% from 3.84% for the quarter ended September 30, 2025.
Dollars in thousands
Change 4Q25 vs.
4Q25
3Q25
4Q24
3Q25
4Q24
Provision for credit losses - loans
$ 5,743
31,394
15,549
(81.7) %
(63.1) %
Provision for credit losses - unfunded commitments
1,981
(189)
1,016
1148.1 %
95.0 %
Total provision for credit losses expense
$ 7,724
31,205
16,565
(75.2) %
(53.4) %
Net charge-offs to average loans, annualized
0.40 %
0.29 %
0.87 %
The total provision for credit losses for the quarter ended December 31, 2025 was $7.7 million primarily driven by growth in our commercial lending portfolio and net charge-offs in the current period.
The total provision for credit losses for the quarter ended September 30, 2025 was $31 million primarily driven by the Day 1 initial provision from the Penns Woods acquisition of $20.6 million. Excluding the Day 1 provision for credit losses from the acquisition, the provision for credit losses for the quarter ended September 30, 2025 was $10.5 million.
The Company saw an decrease in classified loans to $453 million, or 3.49% of total loans, at December 31, 2025 from $527 million, or 4.07% of total loans, at September 30, 2025 and an increase from $272 million, or 2.44% of total loans, at December 31, 2024. This decrease was driven by improvements within the commercial real estate portfolio which decreased $65 million from the prior quarter. The increase from the prior year was primarily due to classified loans acquired in the Penns Woods acquisition.
Dollars in thousands
Change 4Q25 vs.
4Q25
3Q25
4Q24
3Q25
4Q24
Noninterest income:
Gain on sale of investments
$ 142
36
—
294.4 %
NA
Gain on sale of SBA loans
437
341
822
28.2 %
(46.8) %
Service charges and fees
17,377
16,911
15,975
2.8 %
8.8 %
Trust and other financial services income
8,416
8,040
7,485
4.7 %
12.4 %
Gain on real estate owned, net
148
132
238
12.1 %
(37.8) %
Income from bank-owned life insurance
8,269
1,751
2,020
372.2 %
309.4 %
Mortgage banking income
379
1,003
224
(62.2) %
69.2 %
Other operating income
2,609
3,984
13,299
(34.5) %
(80.4) %
Total noninterest income
$ 37,777
32,198
40,063
17.3 %
(5.7) %
Noninterest income decreased from the quarter ended December 31, 2024 by $2 million primarily due to a decrease in other operating income driven by a gain on sale of Visa B shares and a gain on a low income housing tax credit investment in the prior year which was partially offset by an increase in income from bank-owned life insurance due to a large claim recognized in the current quarter. Noninterest income increased from the quarter ended September 30, 2025 by $6 million due primarily to an increase in income from bank-owned life insurance.
Dollars in thousands
Change 4Q25 vs.
4Q25
3Q25
4Q24
3Q25
4Q24
Noninterest expense:
Personnel expense
$ 65,143
63,014
53,198
3.4 %
22.5 %
Non-personnel expense
48,378
70,484
42,128
(31.4) %
14.8 %
Total noninterest expense
$ 113,521
133,498
95,326
(15.0) %
19.1 %
Noninterest expense increased from the quarter ended December 31, 2024 due to a $12 million increase in core compensation and benefits expense due to the addition of Penns Woods employees coupled with an increase in performance based incentive compensation expense. Additionally, non-personnel expense increased by $6 million due to an increase of $2 million of amortization of intangible expense and $1 million of merger and restructuring expense related to the acquisition coupled with increases in operating expenses due to the addition of the Penns Woods branches to our footprint.
Compared to the quarter ended September 30, 2025, personnel expense increased $2 million driven by the same factors discussed above. Non-personnel expense decreased by $22 million due to a $27 million decrease in merger and restructuring expenses in the current quarter which was offset by an increase in processing and other expense due to a full quarter of additional branches and the timing of charitable contributions.
Dollars in thousands
Change 4Q25 vs.
4Q25
3Q25
4Q24
3Q25
4Q24
Income before income taxes
$ 58,698
3,469
42,369
1592.1 %
38.5 %
Income tax expense
12,985
302
9,619
4199.7 %
35.0 %
Net income
$ 45,713
3,167
32,750
1343.4 %
39.6 %
The provision for income taxes increased by $3 million from the quarter ended December 31, 2024 and $13 million from the quarter ended September 30, 2025 primarily due to the quarterly change in income before income taxes.
Net income increased from the quarter ended December 31, 2024 and September 30, 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 December 31, 2025, 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) 726-2140Media 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 and in Latin America; 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, 2024 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)
December 31,2025
September 30,2025
December 31,2024
Assets
Cash and cash equivalents
$ 233,647
278,817
288,378
Marketable securities available-for-sale (amortized cost of $1,710,978, $1,405,959 and $1,278,665, respectively)
1,586,382
1,270,880
1,108,944
Marketable securities held-to-maturity (fair value of $605,929, $618,633 and $637,948, respectively)
683,369
702,392
750,586
Total cash and cash equivalents and marketable securities
2,503,398
2,252,089
2,147,908
Loans held-for-sale
22,437
22,297
76,331
Residential mortgage loans
3,100,780
3,157,853
3,178,269
Home equity loans
1,507,532
1,520,893
1,149,396
Consumer loans
2,563,890
2,453,805
1,995,085
Commercial real estate loans
3,296,902
3,495,664
2,849,862
Commercial loans
2,538,212
2,312,718
2,007,402
Total loans receivable
13,007,316
12,940,933
11,180,014
Allowance for credit losses
(150,212)
(157,396)
(116,819)
Loans receivable, net
12,857,104
12,783,537
11,063,195
FHLB stock, at cost
36,628
33,349
21,006
Accrued interest receivable
56,291
55,549
46,356
Real estate owned, net
76
174
35
Premises and equipment, net
140,381
139,491
124,246
Bank-owned life insurance
294,386
303,115
253,137
Goodwill
444,330
438,402
380,997
Other intangible assets, net
39,667
47,924
2,837
Other assets
371,919
305,082
292,176
Total assets
$ 16,766,617
16,381,009
14,408,224
Liabilities and shareholders' equity
Liabilities
Noninterest-bearing demand deposits
$ 3,123,229
3,089,963
2,621,415
Interest-bearing demand deposits
2,995,759
2,898,350
2,666,504
Money market deposit accounts
2,540,818
2,462,979
2,007,739
Savings deposits
2,366,513
2,373,413
2,171,251
Time deposits
2,916,698
2,871,544
2,677,645
Total deposits
13,943,017
13,696,249
12,144,554
Borrowed funds
446,283
368,241
200,331
Subordinated debt
114,800
114,800
114,538
Junior subordinated debentures
130,093
130,028
129,834
Advances by borrowers for taxes and insurance
37,309
21,840
42,042
Accrued interest payable
6,846
10,555
6,935
Other liabilities
197,845
183,560
173,134
Total liabilities
14,876,193
14,525,273
12,811,368
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, 146,107,964, 146,097,057 and127,508,003 shares issued and outstanding, respectively
1,461
1,461
1,275
Additional paid-in capital
1,270,444
1,268,694
1,033,385
Retained earnings
689,210
672,843
673,110
Accumulated other comprehensive loss
(70,691)
(87,262)
(110,914)
Total shareholders' equity
1,890,424
1,855,736
1,596,856
Total liabilities and shareholders' equity
$ 16,766,617
16,381,009
14,408,224
Equity to assets
11.27 %
11.33 %
11.08 %
Tangible common equity to tangible assets*
8.64 %
8.62 %
8.65 %
Book value per share
$ 12.94
12.70
12.52
Tangible book value per share*
$ 9.63
9.37
9.51
Closing market price per share
$ 12.00
12.39
13.19
Full time equivalent employees
2,169
2,190
1,956
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
December 31, 2025
September 30,2025
June 30, 2025
March 31, 2025
December 31, 2024
Interest income:
Loans receivable
$ 184,047
177,723
154,914
164,638
155,838
Mortgage-backed securities
14,071
12,668
12,154
11,730
11,515
Taxable investment securities
1,324
1,183
999
933
910
Tax-free investment securities
777
752
512
512
515
FHLB stock dividends
701
652
318
366
392
Interest-earning deposits
1,905
1,700
2,673
2,416
1,552
Total interest income
202,825
194,678
171,570
180,595
170,722
Interest expense:
Deposits
52,947
51,880
46,826
47,325
50,854
Borrowed funds
7,712
6,824
5,300
5,452
5,671
Total interest expense
60,659
58,704
52,126
52,777
56,525
Net interest income
142,166
135,974
119,444
127,818
114,197
Provision for credit losses - loans
5,743
31,394
11,456
8,256
15,549
Provision for credit losses - unfunded commitments
1,981
(189)
(2,712)
(345)
1,016
Net interest income after provision for credit losses
134,442
104,769
110,700
119,907
97,632
Noninterest income:
Gain on sale of investments
142
36
—
—
—
Gain on sale of SBA loans
437
341
819
1,238
822
Service charges and fees
17,377
16,911
15,797
14,987
15,975
Trust and other financial services income
8,416
8,040
7,948
7,910
7,485
Gain on real estate owned, net
148
132
258
84
238
Income from bank-owned life insurance
8,269
1,751
1,421
1,331
2,020
Mortgage banking income
379
1,003
1,075
696
224
Other operating income
2,609
3,984
3,620
2,109
13,299
Total noninterest income
37,777
32,198
30,938
28,355
40,063
Noninterest expense:
Compensation and employee benefits
65,143
63,014
55,213
54,540
53,198
Premises and occupancy costs
8,170
7,707
7,122
8,400
7,263
Office operations
4,217
3,495
2,910
2,977
3,036
Collections expense
856
776
838
328
905
Processing expenses
16,454
15,072
12,973
13,990
15,361
Marketing expenses
1,827
1,932
3,018
1,880
2,327
Federal deposit insurance premiums
3,538
3,361
2,296
2,328
2,949
Professional services
3,366
3,010
3,990
2,756
3,788
Amortization of intangible assets
2,257
1,974
436
504
526
Merger, asset disposition and restructuring expense
4,160
31,260
6,244
1,123
2,850
Other expenses
3,533
1,897
2,500
2,911
3,123
Total noninterest expense
113,521
133,498
97,540
91,737
95,326
Income before income taxes
58,698
3,469
44,098
56,525
42,369
Income tax expense
12,985
302
10,423
13,067
9,619
Net income
$ 45,713
3,167
33,675
43,458
32,750
Basic earnings per share
$ 0.31
0.02
0.26
0.34
0.26
Diluted earnings per share
$ 0.31
0.02
0.26
0.34
0.26
Weighted average common shares outstanding - diluted
146,703,966
141,175,516
128,114,509
128,299,013
127,968,910
Annualized return on average equity
9.70 %
0.69 %
8.26 %
10.90 %
8.20 %
Annualized return on average assets
1.10 %
0.08 %
0.93 %
1.22 %
0.91 %
Annualized return on average tangible common equity *
13.10 %
0.90 %
10.78 %
14.29 %
10.81 %
Efficiency ratio
63.09 %
79.38 %
64.86 %
58.74 %
61.80 %
Efficiency ratio, excluding certain items **
59.52 %
59.62 %
60.42 %
57.70 %
59.61 %
*
Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
**
Excludes 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)
Year ended December 31,
2025
2024
Interest income:
Loans receivable
$ 681,322
615,776
Mortgage-backed securities
50,623
39,793
Taxable investment securities
4,439
3,274
Tax-free investment securities
2,553
1,975
FHLB stock dividends
2,037
1,891
Interest-earning deposits
8,694
6,487
Total interest income
749,668
669,196
Interest expense:
Deposits
198,978
205,492
Borrowed funds
25,288
28,126
Total interest expense
224,266
233,618
Net interest income
525,402
435,578
Provision for credit losses - loans
56,849
27,679
Provision for credit losses - unfunded commitments
(1,265)
(3,174)
Net interest income after provision for credit losses
469,818
411,073
Noninterest income:
Gain/(loss) on sale of investments
178
(39,413)
Gain on sale of SBA loans
2,835
3,819
Service charges and fees
65,072
62,957
Trust and other financial services income
32,314
30,102
Gain on real estate owned, net
622
887
Income from bank-owned life insurance
12,772
6,327
Mortgage banking income
3,153
2,321
Other operating income
12,322
20,010
Total noninterest income
129,268
87,010
Noninterest expense:
Compensation and employee benefits
237,910
214,455
Premises and occupancy costs
31,399
29,469
Office operations
13,599
12,433
Collections expense
2,798
2,121
Processing expenses
58,489
59,351
Marketing expenses
8,657
8,890
Federal deposit insurance premiums
11,523
11,600
Professional services
13,122
14,883
Amortization of intangible assets
5,171
2,452
Merger, asset disposition and restructuring expense
42,787
5,763
Other expenses
10,841
7,120
Total noninterest expense
436,296
368,537
Income before income taxes
162,790
129,546
Income tax expense
36,777
29,268
Net income
$ 126,013
100,278
Basic earnings per share
$ 0.93
0.79
Diluted earnings per share
$ 0.92
0.79
Weighted average common shares outstanding - diluted
136,322,885
127,699,501
Annualized return on average equity
7.27 %
6.41 %
Annualized return on average assets
0.82 %
0.70 %
Annualized return on tangible common equity *
9.56 %
8.51 %
Efficiency ratio
66.64 %
70.52 %
Efficiency ratio, excluding certain items **
59.32 %
64.11 %
*
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, gain on sale of mortgage servicing rights, 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
Year ended December 31,
December 31, 2025
September 30,2025
December 31, 2024
2025
2024
Reconciliation of net income to adjusted net income:
Net income (GAAP)
$ 45,713
3,167
32,750
126,013
100,278
Non-GAAP adjustments
Add: merger, asset disposition and restructuring expense
4,160
31,260
2,850
42,787
5,763
Add: loss on the sale of investments
—
—
—
—
39,413
Add: CECL Day ...
