Document

EXHIBIT 99.1

PRESS RELEASE OF NORTHWEST BANCSHARES, INC.

EARNINGS RELEASE

FOR IMMEDIATE RELEASE


Contact:			Ronald J. Seiffert, Chairman, President and Chief Executive Officer (814) 726-2140
			William W. Harvey, Jr., Senior Executive Vice President and Chief Financial Officer (814) 726-2140

Northwest Bancshares, Inc. Announces First Quarter 2022 Earnings and Quarterly Dividend

Columbus, Ohio — April 25, 2022

Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2022 of $28.3 million, or $0.22 per diluted share. This represents a decrease of $12.0 million, or 29.7%, compared to the same quarter last year, when net income was $40.2 million, or $0.32 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended March 31, 2022 were 7.17% and 0.80% compared to 10.61% and 1.17% for the same quarter last year.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on May 16, 2022 to shareholders of record as of May 5, 2022. This is the 110th 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, 2022, this represents an annualized dividend yield of approximately 5.9%.

Ronald J. Seiffert, Chairman, President and CEO, added, "During the quarter we successfully deployed a portion of our liquidity by purchasing two separate loan packages to augment our own loan production and to capitalize on higher market yields. These purchases included a $72 million small business equipment finance pool and a $138 million one- to four-family jumbo mortgage package. We are also very pleased to report a continued favorable trend in expense management over the past five quarters which will be further enhanced by the previously announced consolidation of another 20 branches in early April with expected annual expense savings of approximately $8.0 million. Asset quality metrics also continue to improve from March of last year with nonperforming and classified assets declining by $100.4 million and $147.9 million, respectively, and total delinquency and net charge-offs falling below pre-pandemic levels."

Mr. Seiffert continued "During the quarter our net interest income and net interest margin were once again impacted by the low interest rate environment and excess balance sheet liquidity, but we are encouraged by the recent increase in interest rates by the Federal Reserve with market expectations of more rate increases throughout the remainder of the year."

Net interest income decreased by $9.8 million, or 9.8%, to $90.6 million for the quarter ended March 31, 2022, from $100.5 million for the quarter ended March 31, 2021, due to a $14.1 million, or 13.8%, decrease in interest income on loans receivable. This decrease in interest income on loans was due to a decrease of $507.7 million, or 4.9%, in the average balance of loans in addition to a reduction in the yield on loans to 3.63% for the quarter ended March 31, 2022 from 4.01% for the quarter ended March 31, 2021. Also, contributing to the reduction in yield and interest income on loans, was PPP fee accretion of just $1.2 million during the current quarter compared to $4.8 million in the same quarter last year. Partially offsetting this decrease in interest income was a decrease in interest expense on deposits of $1.8 million, or 32.0%, primarily due to a decrease in our cost of our interest-bearing liabilities to 0.25% for the quarter ended March 31, 2022 from 0.33% for the quarter ended March 31, 2021 as a result of low market interest rates over the past year. Partially offsetting the decline in deposit interest rates was growth in the average balance of interest-bearing liabilities of $180.2 million, or 1.9%. The net effect of these changes, as well as the continued build of excess liquidity, caused the Company's net interest margin to decrease to 2.75% for the quarter ended March 31, 2022 from 3.18% for the same quarter last year.

The Company continued to experience improvement in asset quality as classified loans decreased by $147.9 million, or 31.6%, to $319.9 million, or 3.15% of total loans, at March 31, 2022 from $467.7 million, or 4.51% of total loans, at March 31, 2021. Total delinquent loans also decreased to $75.4 million, or just 0.74% of loans receivable, at March 31, 2022 from $122.8 million, or 1.18% of gross loans, at March 31, 2021. In addition, net charge-offs were just 0.06% during the current quarter compared to 0.19% during the same quarter last year. As a result of these improvements in asset quality, the Company once again recognized a negative provision for credit losses of $1.5 million for the quarter ended March 31, 2022 compared to a $5.6 million credit for the quarter ended March 31, 2021.

Noninterest income decreased by $6.2 million, or 19.4%, to $25.7 million for the quarter ended March 31, 2022, from $32.0 million for the quarter ended March 31, 2021. This decrease was primarily due to a decrease in mortgage banking income of $4.6 million, or 75.7%, to $1.5 million for the quarter ended March 31, 2022 from $6.0 million for the quarter ended March 31, 2021. This decrease reflects the impact of less favorable pricing in the secondary market. In addition, there was a decrease in insurance commission income of $2.5 million, or 100.0% from the quarter ended March 31, 2021 due to the sale of the insurance business during the second quarter of 2021.

Noninterest expense decreased by $4.2 million, or 4.9%, to $81.9 million for the quarter ended March 31, 2022 from $86.2 million for the quarter ended March 31, 2021. This decrease primarily resulted from a $2.0 million, or 43.8%, decrease in professional services to $2.6 million for the quarter ended March 31, 2022 from $4.6 million for the quarter ended March 31, 2021 due to the use of third-party experts to recruit talent and assist with our digital strategy rollout in the prior year. Also contributing to this favorable variance was a decrease of $1.0 million, or 11.5%, in premises and occupancy costs to $7.8 million for the quarter ended March 31, 2022 from $8.8 million for the quarter ended March 31, 2021 due primarily to the cost savings from the prior year's branch optimization initiative. Lastly, other expense decreased $1.0 million, or 29.8%, to $2.4 million for the quarter ended March 31, 2022 from $3.4 million for the quarter ended March 31, 2021 due to the increase in the discount rate used to calculate our pension liability and related pension expense. Partially offsetting these decreases was an increase in merger, asset disposition and restructuring expense of $1.4 million for the quarter ended March 31, 2022 due to the branch optimization initiative announced during the fourth quarter of 2021.

The provision for income taxes decreased by $4.0 million, or 34.4%, to $7.6 million for the quarter ended March 31, 2022 from $11.6 million for the quarter ended March 31, 2021 due primarily to a decrease in income before taxes in the current year.

Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank. Founded in 1896 and headquartered in Warren, Pennsylvania, 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, 2022, Northwest operated 162 full-service community banking offices and eight free standing drive-through facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.’s common stock is listed on the NASDAQ Global Select Market (“NWBI”). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.

# # #

Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; (7) increased risk associated with commercial real-estate and business loans; and (8) the effect of any pandemic, including COVID-19, war or act of terrorism. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(dollars in thousands, except per share amounts)


	March 31, 2022			December 31, 2021		March 31, 2021
Assets
Cash and cash equivalents	$	1,161,006		1,279,259		979,290


Marketable securities available-for-sale (amortized cost of $1,542,170, $1,565,002 and $1,430,352, respectively)	1,442,098			1,548,592		1,430,131
Marketable securities held-to-maturity (fair value of $677,376, $751,513 and $593,232, respectively)	737,730			768,154		604,284
Total cash and cash equivalents and marketable securities	3,340,834			3,596,005		3,013,705

Residential mortgage loans held-for-sale	19,272			25,056		46,270
Residential mortgage loans	3,102,617			2,969,564		2,925,408
Home equity loans	1,286,520			1,319,931		1,407,524
Consumer loans	1,895,981			1,838,748		1,554,355
Commercial real estate loans	2,959,893			3,015,484		3,289,436
Commercial loans	874,751			847,609		1,145,047
Total loans receivable	10,139,034			10,016,392		10,368,040
Allowance for credit losses	(99,295)			(102,241)		(123,997)
Loans receivable, net	10,039,739			9,914,151		10,244,043


FHLB stock, at cost	13,318			14,184		21,861
Accrued interest receivable	26,268			25,599		28,732
Real estate owned, net	929			873		1,738
Premises and equipment, net	149,970			156,524		158,784
Bank-owned life insurance	254,109			256,213		252,599
Goodwill	380,997			380,997		382,356
Other intangible assets, net	11,654			12,836		18,342
Other assets	155,585			144,126		148,196
Total assets	$	14,373,403		14,501,508		14,270,356
Liabilities and shareholders’ equity
Liabilities
Noninterest-bearing demand deposits	$	3,128,849		3,099,526		3,000,019
Interest-bearing demand deposits	2,891,622			2,940,442		2,826,461
Money market deposit accounts	2,680,613			2,629,882		2,521,881
Savings deposits	2,367,438			2,303,760		2,229,214
Time deposits	1,251,878			1,327,555		1,535,519
Total deposits	12,320,400			12,301,165		12,113,094


Borrowed funds	121,436			139,093		253,617
Subordinated debt	123,670			123,575		—
Junior subordinated debentures	129,119			129,054		128,859
Advances by borrowers for taxes and insurance	44,022			44,582		44,024
Accrued interest payable	563			1,804		659
Other liabilities	110,681			178,664		189,109
Total liabilities	12,849,891			12,917,937		12,729,362
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, 126,686,373, 126,612,183 and 127,222,648 shares issued and outstanding, respectively	1,267			1,266		1,272
Additional paid-in capital	1,012,308			1,010,405		1,018,822
Retained earnings	612,481			609,529		571,612

Accumulated other comprehensive loss	(102,544)			(37,629)		(50,712)
Total shareholders’ equity	1,523,512			1,583,571		1,540,994
Total liabilities and shareholders’ equity	$	14,373,403		14,501,508		14,270,356

Equity to assets	10.60		%	10.92	%	10.80	%
Tangible common equity to assets*	8.09		%	8.43	%	8.22	%
Book value per share	$	12.03		12.51		12.11
Tangible book value per share*	$	8.93		9.40		8.96
Closing market price per share	$	13.51		14.16		14.45
Full time equivalent employees	2,268			2,332		2,443
Number of banking offices	170			170		170

* Excludes goodwill and other intangible assets (non-GAAP).

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)


	Quarter ended
	March 31, 2022			December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021

Interest income:
Loans receivable	$	88,174		95,295		97,475		95,255		102,318
Mortgage-backed securities	6,360			5,743		5,840		5,680		4,200
Taxable investment securities	677			640		649		693		634
Tax-free investment securities	674			688		628		594		575
FHLB stock dividends	81			82		71		138		116
Interest-earning deposits	467			467		352		192		183
Total interest income	96,433			102,915		105,015		102,552		108,026
Interest expense:
Deposits	3,751			4,295		4,540		4,773		5,514
Borrowed funds	2,059			1,964		2,056		2,050		2,054
Total interest expense	5,810			6,259		6,596		6,823		7,568
Net interest income	90,623			96,656		98,419		95,729		100,458
Provision for credit losses	(1,481)			(1,909)		(4,354)		—		(5,620)
Net interest income after provision for credit losses	92,104			98,565		102,773		95,729		106,078
Noninterest income:
Loss on sale of investments	(2)			(4)		(46)		(105)		(21)

Service charges and fees	13,067			13,500		13,199		12,744		12,394


Trust and other financial services income	7,012			6,820		7,182		7,435		6,484
Insurance commission income	—			—		44		1,043		2,546
Gain/(loss) on real estate owned, net	(29)			71		247		166		(42)
Income from bank-owned life insurance	1,983			1,343		1,332		1,639		1,736
Mortgage banking income	1,465			2,120		3,941		3,811		6,020
Gain on sale of insurance business	—			—		—		25,327		—
Other operating income	2,244			3,192		3,287		2,648		2,836
Total noninterest income	25,740			27,042		29,186		54,708		31,953
Noninterest expense:
Compensation and employee benefits	46,917			48,691		49,063		48,894		47,239
Premises and occupancy costs	7,797			7,104		7,745		7,410		8,814
Office operations	3,383			3,144		4,143		3,317		3,165
Collections expense	520			602		411		303		616
Processing expenses	12,548			13,639		13,517		15,151		13,456
Marketing expenses	2,128			2,054		2,102		2,101		1,980
Federal deposit insurance premiums	1,129			1,131		1,184		1,353		1,307
Professional services	2,573			4,513		4,295		4,231		4,582
Amortization of intangible assets	1,183			1,205		1,321		1,433		1,594
Real estate owned expense	37			44		94		85		75
Merger, asset disposition and restructuring expense	1,374			2,812		—		632		9
Other expenses	2,355			1,346		2,227		1,422		3,354
Total noninterest expense	81,944			86,285		86,102		86,332		86,191
Income before income taxes	35,900			39,322		45,857		64,105		51,840
Income tax expense	7,613			9,266		10,794		15,138		11,603
Net income	$	28,287		30,056		35,063		48,967		40,237

Basic earnings per share	$	0.22		0.24		0.28		0.38		0.32
Diluted earnings per share	$	0.22		0.24		0.27		0.38		0.32




Annualized return on average equity	7.17		%	7.65	%	8.86	%	12.58	%	10.61	%
Annualized return on average assets	0.80		%	0.82	%	0.97	%	1.37	%	1.17	%
Annualized return on tangible common equity *	10.14		%	10.02	%	11.92	%	16.66	%	14.31	%

Efficiency ratio **	68.22		%	66.51	%	66.44	%	67.35	%	63.88	%
Annualized noninterest expense to average assets ***	2.23		%	2.25	%	2.33	%	2.35	%	2.45	%

* Excludes goodwill and other intangible assets (non-GAAP).

** Excludes gain on sale of insurance business, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).

*** Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).

Northwest Bancshares, Inc. and Subsidiaries

Asset Quality (Unaudited)

(dollars in thousands)


	March 31, 2022			December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Nonaccrual loans current:
Residential mortgage loans	$	1,884		1,354		2,015		189		164
Home equity loans	1,376			1,212		1,267		170		268

Consumer loans	1,148			1,336		1,465		188		225
Commercial real estate loans	79,810			106,233		111,075		138,820		146,304
Commercial loans	6,060			6,098		17,021		17,545		6,361
Total nonaccrual loans current	$	90,278		116,233		132,843		156,912		153,322
Nonaccrual loans delinquent 30 days to 59 days:
Residential mortgage loans	$	760		244		99		68		1,261
Home equity loans	195			223		328		229		340

Consumer loans	190			241		152		230		254
Commercial real estate loans	333			239		205		1,589		965
Commercial loans	4			53		102		406		1,538
Total nonaccrual loans delinquent 30 days to 59 days	$	1,482		1,000		886		2,522		4,358
Nonaccrual loans delinquent 60 days to 89 days:
Residential mortgage loans	$	830		1,163		527		207		813
Home equity loans	371			61		142		310		417

Consumer loans	280			292		291		297		649
Commercial real estate loans	—			364		419		198		1,877
Commercial loans	—			218		170		21		7,919
Total nonaccrual loans delinquent 60 days to 89 days	$	1,481		2,098		1,549		1,033		11,675
Nonaccrual loans delinquent 90 days or more:
Residential mortgage loans	$	3,976		7,641		8,069		10,007		9,333
Home equity loans	2,968			4,262		4,745		6,256		7,044

Consumer loans	1,782			2,069		2,184		2,341		3,625
Commercial real estate loans	21,399			24,063		25,562		23,564		29,737
Commercial loans	795			1,105		1,104		4,126		4,860
Total nonaccrual loans delinquent 90 days or more	$	30,920		39,140		41,664		46,294		54,599
Total nonaccrual loans	$	124,161		158,471		176,942		206,761		223,954
Total nonaccrual loans	$	124,161		158,471		176,942		206,761		223,954
Loans 90 days past due and still accruing	420			331		386		302		197
Nonperforming loans	124,581			158,802		177,328		207,063		224,151
Real estate owned, net	929			873		809		1,353		1,738
Nonperforming assets	$	125,510		159,675		178,137		208,416		225,889
Nonaccrual troubled debt restructuring *	$	16,015		17,216		12,858		8,951		7,390
Accruing troubled debt restructuring	12,686			13,072		13,664		18,480		20,120
Total troubled debt restructuring	$	28,701		30,288		26,522		27,431		27,510

Nonperforming loans to total loans	1.23		%	1.59	%	1.74	%	2.01	%	2.16	%
Nonperforming assets to total assets	0.87		%	1.10	%	1.24	%	1.46	%	1.58	%
Allowance for credit losses to total loans	0.98		%	1.02	%	1.08	%	1.14	%	1.20	%
Allowance for total loans excluding PPP loan balances	0.98		%	1.03	%	1.09	%	1.17	%	1.24	%
Allowance for credit losses to nonperforming loans	79.70		%	64.38	%	61.90	%	56.66	%	55.32	%

* Amounts included in nonperforming loans above.

Northwest Bancshares, Inc. and Subsidiaries

Loans by Credit Quality Indicators (Unaudited)

(dollars in thousands)


At March 31, 2022	Pass		Special mention *	Substandard **	Doubtful	Loss	Loans receivable
Personal Banking:
Residential mortgage loans	$	3,108,366	—	13,523	—	—	3,121,889
Home equity loans	1,280,342		—	6,178	—	—	1,286,520
Consumer loans	1,892,162		—	3,819	—	—	1,895,981
Total Personal Banking	6,280,870		—	23,520	—	—	6,304,390
Commercial Banking:
Commercial real estate loans	2,633,808		62,091	263,994	—	—	2,959,893
Commercial loans	839,125		3,277	32,349	—	—	874,751
Total Commercial Banking	3,472,933		65,368	296,343	—	—	3,834,644
Total loans	$	9,753,803	65,368	319,863	—	—	10,139,034
At December 31, 2021
Personal Banking:
Residential mortgage loans	$	2,978,080	—	16,540	—	—	2,994,620
Home equity loans	1,312,820		—	7,111	—	—	1,319,931
Consumer loans	1,834,478		—	4,270	—	—	1,838,748
Total Personal Banking	6,125,378		—	27,921	—	—	6,153,299
Commercial Banking:
Commercial real estate loans	2,639,676		74,123	301,685	—	—	3,015,484
Commercial loans	808,323		5,730	33,556	—	—	847,609
Total Commercial Banking	3,447,999		79,853	335,241	—	—	3,863,093
Total loans	$	9,573,377	79,853	363,162	—	—	10,016,392
At September 30, 2021
Personal Banking:
Residential mortgage loans	$	2,972,489	—	17,032	—	—	2,989,521
Home equity loans	1,342,479		—	7,869	—	—	1,350,348
Consumer loans	1,812,360		—	4,476	—	—	1,816,836
Total Personal Banking	6,127,328		—	29,377	—	—	6,156,705
Commercial Banking:
Commercial real estate loans	2,799,592		63,034	299,925	—	—	3,162,551
Commercial loans	813,665		10,976	55,071	—	—	879,712
Total Commercial Banking	3,613,257		74,010	354,996	—	—	4,042,263
Total loans	$	9,740,585	74,010	384,373	—	—	10,198,968
At June 30, 2021
Personal Banking:
Residential mortgage loans	$	2,937,418	—	17,133	—	—	2,954,551
Home equity loans	1,367,765		—	8,463	—	—	1,376,228
Consumer loans	1,741,872		—	3,359	—	—	1,745,231
Total Personal Banking	6,047,055		—	28,955	—	—	6,076,010
Commercial Banking:
Commercial real estate loans	2,781,734		73,167	360,288	—	—	3,215,189
Commercial loans	943,665		11,266	63,850	—	—	1,018,781
Total Commercial Banking	3,725,399		84,433	424,138	—	—	4,233,970
Total loans	$	9,772,454	84,433	453,093	—	—	10,309,980
At March 31, 2021
Personal Banking:
Residential mortgage loans	$	2,950,103	—	21,575	—	—	2,971,678
Home equity loans	1,396,757		—	10,767	—	—	1,407,524
Consumer loans	1,547,502		—	6,853	—	—	1,554,355
Total Personal Banking	5,894,362		—	39,195	—	—	5,933,557
Commercial Banking:
Commercial real estate loans	2,801,082		120,345	368,009	—	—	3,289,436
Commercial loans	1,061,884		22,623	60,540	—	—	1,145,047
Total Commercial Banking	3,862,966		142,968	428,549	—	—	4,434,483
Total loans	$	9,757,328	142,968	467,744	—	—	10,368,040

* Includes $4.4 million, $14.9 million, $16.7 million, $16.7 million, and $26.4 million of acquired loans at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.

** Includes $71.9 million, $81.5 million, $110.4 million, $122.5 million, and $143.2 million of acquired loans at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.

Northwest Bancshares, Inc. and Subsidiaries

Loan Delinquency (Unaudited)

(dollars in thousands)


	March 31, 2022			*		December 31, 2021			*		September 30, 2021			*		June 30, 2021			*		March 31, 2021			*
(Number of loans and dollar amount of loans)
Loans delinquent 30 days to 59 days:
Residential mortgage loans	281	$	24,057	0.8	%	277	$	20,567	0.7	%	17	$	765	—	%	13	$	606	—	%	248	$	22,236	0.7	%
Home equity loans	105	3,867		0.3	%	112	3,153		0.2	%	101	3,351		0.2	%	91	3,677		0.3	%	84	3,334		0.2	%

Consumer loans	523	6,043		0.3	%	589	6,536		0.4	%	576	6,146		0.3	%	532	5,571		0.3	%	535	5,732		0.4	%
Commercial real estate loans	25	3,643		0.1	%	17	17,065		0.6	%	19	2,004		0.1	%	13	2,857		0.1	%	33	12,240		0.4	%
Commercial loans	16	1,268		0.1	%	12	193		—	%	10	692		0.1	%	15	686		0.1	%	16	3,032		0.3	%
Total loans delinquent 30 days to 59 days	950	$	38,878	0.4	%	1,007	$	47,514	0.5	%	723	$	12,958	0.1	%	664	$	13,397	0.1	%	916	$	46,574	0.4	%

Loans delinquent 60 days to 89 days:
Residential mortgage loans	24	$	1,950	0.1	%	59	$	5,433	0.2	%	55	$	4,907	0.2	%	58	$	4,051	0.1	%	26	$	2,062	0.1	%
Home equity loans	28	1,138		0.1	%	30	949		0.1	%	29	1,024		0.1	%	36	1,502		0.1	%	31	953		0.1	%

Consumer loans	159	1,839		0.1	%	195	2,006		0.1	%	180	1,757		0.1	%	181	1,988		0.1	%	169	1,868		0.1	%
Commercial real estate loans	1	112		—	%	5	769		—	%	8	1,170		—	%	9	1,335		—	%	14	7,609		0.2	%
Commercial loans	3	103		—	%	10	727		0.1	%	2	170		—	%	2	27		—	%	12	8,979		0.8	%
Total loans delinquent 60 days to 89 days	215	$	5,142	0.1	%	299	$	9,884	0.1	%	274	$	9,028	0.1	%	286	$	8,903	0.1	%	252	$	21,471	0.2	%

Loans delinquent 90 days or more: **
Residential mortgage loans	47	$	3,976	0.1	%	87	$	7,641	0.3	%	95	$	8,069	0.3	%	115	$	10,007	0.3	%	121	$	9,333	0.3	%
Home equity loans	91	2,968		0.2	%	105	4,262		0.3	%	119	4,745		0.4	%	146	6,256		0.5	%	176	7,044		0.5	%

Consumer loans	287	2,202		0.1	%	296	2,400		0.1	%	308	2,568		0.1	%	356	2,643		0.2	%	454	3,822		0.2	%
Commercial real estate loans	41	21,399		0.7	%	52	24,063		0.8	%	59	25,562		0.8	%	83	23,564		0.7	%	113	29,737		0.9	%
Commercial loans	10	795		0.1	%	8	1,105		0.1	%	10	1,104		0.1	%	18	4,126		0.4	%	31	4,860		0.4	%
Total loans delinquent 90 days or more	476	$	31,340	0.3	%	548	$	39,471	0.4	%	591	$	42,048	0.4	%	718	$	46,596	0.5	%	895	$	54,796	0.5	%

Total loans delinquent	1,641	$	75,360	0.7	%	1,854	$	96,869	1.0	%	1,588	$	64,034	0.6	%	1,668	$	68,896	0.7	%	2,063	$	122,841	1.2	%

* Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.

** Includes purchased credit deteriorated loans of $7.1 million, $7.3 million, $8.4 million, $10.3 million, and $12.7 million at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.

Northwest Bancshares, Inc. and Subsidiaries

Allowance for Credit Losses (Unaudited)

(dollars in thousands)


	Quarter ended
	March 31, 2022			December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Beginning balance	$	102,241		109,767		117,330		123,997		134,427


Provision	(1,481)			(1,909)		(4,354)		—		(5,620)
Charge-offs residential mortgage	(1,183)			(784)		(1,263)		(770)		(855)
Charge-offs home equity	(447)			(1,299)		(1,474)		(379)		(228)

Charge-offs consumer	(1,723)			(2,897)		(2,148)		(2,401)		(2,603)
Charge-offs commercial real estate	(1,024)			(2,652)		(1,581)		(3,964)		(4,626)
Charge-offs commercial	(681)			(2,586)		(412)		(1,161)		(54)
Recoveries	3,593			4,601		3,669		2,008		3,556
Ending balance	$	99,295		102,241		109,767		117,330		123,997
Net charge-offs to average loans, annualized	0.06		%	0.22	%	0.12	%	0.26	%	0.19	%

Northwest Bancshares, Inc. and Subsidiaries

Average Balance Sheet (Unaudited)

(dollars in thousands)

The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.


	Quarter ended
	March 31, 2022					December 31, 2021					September 30, 2021					June 30, 2021					March 31, 2021
	Average balance		Interest	Avg. yield/ cost (i)		Average balance		Interest	Avg. yield/ cost (i)		Average balance		Interest	Avg. yield/ cost (i)		Average balance		Interest	Avg. yield/ cost (i)		Average balance		Interest	Avg. yield/ cost (i)
Assets:
Interest-earning assets:
Residential mortgage loans	$	2,980,788	25,542	3.43	%	$	2,977,942	25,269	3.39	%	$	2,959,794	25,398	3.43	%	$	2,935,034	25,609	3.49	%	$	3,007,439	26,366	3.51	%
Home equity loans	1,293,986		11,472	3.60	%	1,328,553		11,750	3.51	%	1,356,131		11,993	3.51	%	1,380,794		12,232	3.55	%	1,432,009		12,815	3.63	%
Consumer loans	1,799,037		14,907	3.36	%	1,756,620		15,514	3.50	%	1,728,563		16,220	3.72	%	1,589,739		14,555	3.67	%	1,463,284		14,566	4.04	%
Commercial real estate loans	3,000,204		29,757	3.97	%	3,113,924		34,062	4.28	%	3,205,839		35,305	4.31	%	3,257,810		33,349	4.05	%	3,313,892		38,471	4.64	%
Commercial loans	824,770		6,897	3.34	%	855,998		9,154	4.18	%	975,603		9,096	3.65	%	1,133,969		9,978	3.48	%	1,189,812		10,566	3.55	%
Total loans receivable (a) (b) (d)	9,898,785		88,575	3.63	%	10,033,037		95,749	3.79	%	10,225,930		98,012	3.80	%	10,297,346		95,723	3.73	%	10,406,436		102,784	4.01	%
Mortgage-backed securities (c)	1,945,173		6,360	1.31	%	1,894,683		5,743	1.21	%	1,832,876		5,840	1.27	%	1,756,227		5,680	1.29	%	1,324,558		4,200	1.27	%
Investment securities (c) (d)	373,694		1,540	1.65	%	358,558		1,535	1.71	%	348,619		1,466	1.68	%	364,414		1,466	1.61	%	331,358		1,381	1.67	%
FHLB stock, at cost	13,870		81	2.38	%	14,459		82	2.25	%	21,607		71	1.31	%	23,107		138	2.40	%	21,811		116	2.17	%
Other interest-earning deposits	1,218,960		467	0.15	%	1,168,449		467	0.16	%	905,130		352	0.15	%	810,741		192	0.09	%	801,119		183	0.09	%
Total interest-earning assets	13,450,482		97,023	2.93	%	13,469,186		103,576	3.05	%	13,334,162		105,741	3.15	%	13,251,835		103,199	3.12	%	12,885,282		108,664	3.42	%
Noninterest-earning assets (e)	973,092					1,004,905					1,074,122					1,104,924					1,102,477
Total assets	$	14,423,574				$	14,474,091				$	14,408,284				$	14,356,759				$	13,987,759
Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Savings deposits	$	2,334,494	592	0.10	%	$	2,282,606	622	0.11	%	$	2,271,365	603	0.11	%	$	2,255,578	590	0.10	%	$	2,118,030	625	0.12	%
Interest-bearing demand deposits	2,875,430		321	0.05	%	2,933,466		411	0.06	%	2,890,905		414	0.06	%	2,840,949		407	0.06	%	2,783,429		429	0.06	%
Money market deposit accounts	2,668,105		653	0.10	%	2,618,177		656	0.10	%	2,565,159		637	0.10	%	2,537,629		621	0.10	%	2,497,495		657	0.11	%
Time deposits	1,292,608		2,185	0.69	%	1,356,513		2,606	0.76	%	1,423,041		2,886	0.80	%	1,493,947		3,155	0.85	%	1,583,525		3,803	0.97	%
Borrowed funds (f)	135,289		158	0.47	%	135,038		159	0.47	%	131,199		154	0.47	%	131,240		150	0.46	%	143,806		154	0.43	%
Subordinated debt (g)	123,608		1,250	4.05	%	123,514		1,180	3.82	%	123,513		1,277	4.10	%	123,443		1,264	4.11	%	123,357		1,258	4.14	%
Junior subordinated debentures	129,077		651	2.02	%	129,012		625	1.89	%	128,946		625	1.90	%	128,882		636	1.95	%	128,817		642	1.99	%
Total interest-bearing liabilities	9,558,611		5,810	0.25	%	9,578,326		6,259	0.26	%	9,534,128		6,596	0.27	%	9,511,668		6,823	0.29	%	9,378,459		7,568	0.33	%
Noninterest-bearing demand deposits (h)	3,060,698					3,093,518					3,058,819					3,036,202					2,805,206
Noninterest-bearing liabilities	203,537					242,620					244,402					247,930					265,667
Total liabilities	12,822,846					12,914,464					12,837,349					12,795,800					12,449,332
Shareholders’ equity	1,600,728					1,559,627					1,570,935					1,560,959					1,538,427
Total liabilities and shareholders’ equity	$	14,423,574				$	14,474,091				$	14,408,284				$	14,356,759				$	13,987,759
Net interest income/Interest rate spread			91,213	2.68	%			97,317	2.79	%			99,145	2.87	%			96,376	2.84	%			101,096	3.09	%
Net interest-earning assets/Net interest margin	$	3,891,871		2.75	%	$	3,890,860		2.89	%	$	3,800,034		2.97	%	$	3,740,167		2.91	%	$	3,506,823		3.18	%
Ratio of interest-earning assets to interest-bearing liabilities	1.41X					1.41X					1.40X					1.39X					1.37X

(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.

(b) Interest income includes accretion/amortization of deferred loan fees/expenses, which was not material.

(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis.

(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.

(f) Average balances include FHLB borrowings and collateralized borrowings.

(g) On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity of September 15, 2030.

(h) Average cost of deposits were 0.12%, 0.14%, 0.15%, 0.16%, and 0.19%, respectively.

(i) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans — 3.61%, 3.77%, 3.79%, 3.71%, and 3.99%, respectively, Investment securities — 1.45%, 1.48%, 1.47%, 1.41%, and 1.46%, respectively, Interest-earning assets — 2.91%, 3.03%, 3.13%, 3.10%, and 3.40%, respectively. GAAP basis net interest rate spreads were 2.66%, 2.77%, 2.86%, 2.82%, and 3.07%, respectively, and GAAP basis net interest margins were 2.73%, 2.87%, 2.95%, 2.89%, and 3.16%, respectively.