Northwest Bancshares, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP net income was $51 million ($0.34 per diluted share), an increase of $48 million compared to $3 million ($0.02 per share) in the same quarter last year, and a decrease of $3 million compared to $54 million ($0.36 per share) in the prior quarter.
• Adjusted net income (non-GAAP) was $51 million ($0.35 per diluted share), a decrease of $3 million from $54 million ($0.37 per share) in the prior quarter.
• Net interest income reached a record $148.95 million, up $2 million from the prior quarter and up $13 million from the prior year.
• Net interest margin was 3.70%, down from 3.75% in the prior quarter and up from 3.65% in the prior year.
• Total noninterest income was $35.93 million, up $2 million from the prior quarter and up $4 million from the prior year.
• Total noninterest expense was $108.97 million, up $5 million from the prior quarter and down $25 million from the prior year.
• Efficiency ratio was 58.9%, and the adjusted efficiency ratio was 57.8%.
• Annualized return on average shareholders' equity was 10.42% (GAAP) and 10.45% (non-GAAP).
• Annualized return on average assets was 1.18% (GAAP) and 1.18% (non-GAAP).
• Total provision for credit losses expense was $9.12 million, up $2 million from the prior quarter and down $22 million from the prior year.
• Annualized net charge-offs were 0.15%.
• Nonperforming loans were 0.74% of total loans.
• Classified loans were $469 million, down $55 million from the prior quarter and down $58 million from the prior year.

Guidance and Future Outlook:

• Management expressed confidence in a strong finish for the fourth quarter of 2026, building on momentum in Columbus and across the retail footprint and commercial network.
• The Company stated its focus remains on driving excellence, optimizing operations, and serving core customers.

Business Segments and Product Lines:

• Commercial and industrial (C&I) loans grew 31% year-over-year.
• Growth was driven by the national specialty business verticals and the middle market portfolio.
• The retail deposit franchise remained strong with low deposit costs.
• The Company opened its first two financial centers in Columbus during the quarter.
• Talent was added in the Columbus market and to the senior leadership team.
• The Company was recognized in Forbes' World's Top Performing Banks 2026.

Market and Competitive Landscape:

• The Company noted its deposit costs are among the best-in-class compared to peers.
• The Company operates 153 full-service financial centers and eleven free-standing drive-up facilities in Pennsylvania, New York, Ohio, and Indiana.

Risks and Challenges:

• The press release includes a standard forward-looking statement disclaimer noting risks such as interest rate environment changes, asset quality deterioration, regulatory changes, economic conditions, and cyber-security concerns.
• Specific risks mentioned include the potential impact of the Trump administration's regulatory reform agenda and changes in tax laws.

Management Commentary and Tone:

• Louis J. Torchio, President and CEO, described the quarter as "strong performance" with "record total revenue and net interest income" and "balanced and consistent performance across the whole bank."
• Management highlighted the execution of a strategy for "sustainable, responsible growth" and maintaining expense management discipline.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.20 per share, payable on November 17, 2026, to shareholders of record as of November 5, 2026.
• This marks the 128th consecutive quarter of cash dividend payments.
• Based on the market value of common stock as of September 30, 2026, the dividend represents an annualized yield of approximately 5.4%.
• The quarter included the acquisition of Penns Woods Bancorp, Inc., which drove significant growth in average loans, investments, and deposits.
• The Day 1 initial provision from the Penns Woods acquisition was $20.6 million.
• Merger, asset disposition, and restructuring expenses decreased by $31 million compared to the prior year quarter.
• FDIC insurance premium expense increased by $3 million compared to the prior quarter due to the absence of a prior period benefit related to assessment rate changes.
• Average borrowings increased 62.8% from the prior quarter and 77.8% from the prior year.
• Total deposits were $14.28 billion as of September 30, 2026.
• Uninsured deposits (excluding intercompany and collateralized accounts) were $2.19 billion, representing 15.4% of total deposits.
• The largest uninsured depositor held $236 million, and the top ten held $443 million.
• Regulatory capital ratios for Northwest Bancshares, Inc. included a Total Capital ratio of 14.39%, Tier 1 Capital ratio of 12.17%, and Common Equity Tier 1 ratio of 12.17%.
• Tangible common equity to tangible assets was 8.40%.
• Book value per share was $12.91, and tangible book value per share was $9.65.