Form 8-K Northwest Bancshares, For: Jan 24

January 24, 2022 9:13 AM EST

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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 Fourth Quarter 2021 Earnings and Quarterly Dividend
 
Columbus, Ohio — January 24, 2022
 
Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2021 of $30.1 million, or $0.24 per diluted share. This represents a decrease of $5.0 million, or 14.3%, compared to the same quarter last year when net income was $35.1 million, or $0.28 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended December 31, 2021 were 7.65% and 0.82% compared to 9.00% and 1.01% 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 February 14, 2022 to shareholders of record as of February 3, 2022. This is the 109th 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, 2021, this represents an annualized dividend yield of approximately 5.6%.

Ronald J. Seiffert, Chairman, President and CEO, added, "Earnings were enhanced this year due to the release of credit loss reserves throughout 2021 including this quarter. These reserves had been previously built up as a result of the uncertainties created by COVID-19. We are also very pleased that non-performing and classified assets as well as our delinquencies continued to trend downward in 2021 and that our expenses remained well-contained heading into 2022. Although yields stabilized in 2021, our net interest spread and net interest margin both declined due to our current excess liquidity position."

Mr. Seiffert continued, "Our overall in-branch transaction volumes once again declined in 2021 as our customers continued to migrate towards our digital banking experience. As a result, we have decided to further optimize our branch network by consolidating 12% of our branch offices in April of 2022. This effort, coupled with other efficiency measures, generated $2.8 million in severance and restructuring costs in the fourth quarter with an additional $3.5 million expected to be recognized in the first quarter of 2022. This overall initiative is anticipated to generate approximately $8.0 million in annual operating expense savings beginning in the second quarter of 2022."
 
Net interest income decreased by $6.2 million, or 6.1%, to $96.7 million for the quarter ended December 31, 2021, from $102.9 million for the quarter ended December 31, 2020, due to a $10.4 million, or 9.8%, decrease in interest income on loans receivable. The decrease in interest income on loans was due to a decrease of $616.7 million, or 5.8%, in the average balance of loans in addition to a reduction in the yield on loans to 3.79% for the quarter ended December 31, 2021 from 3.97% for the same quarter last year. Partially offsetting this decrease was a decrease in interest expense on deposits of $2.4 million, or 36.0%, primarily due to a decrease in our cost of interest-bearing liabilities to 0.26% for the quarter ended December 31, 2021 from 0.38% for the quarter ended December 31, 2020 as market interest rates continued to decline over the past year. Partially offsetting the decline in deposit interest rates was growth in the average balance of interest-bearing liabilities of $266.9 million, or 2.9%. The net impact of these changes caused the Company's net interest margin to decrease to 2.89% for the quarter ended December 31, 2021 from 3.26% for the same quarter last year.

     The provision for credit losses experienced a net credit of $1.9 million for the quarter ended December 31, 2021, compared to a credit of $2.2 million for the quarter ended December 31, 2020. This credit to provision expense was primarily the result of improvements in the economic forecasts and our overall improvement in credit quality. Total classified loans decreased by $126.2 million, or 25.8%, to $363.2 million for the quarter ended December 31, 2021 from $489.3 million for the quarter ended December 31, 2020.
     
    Noninterest income decreased by $5.1 million, or 15.8%, to $27.0 million for the quarter ended December 31, 2021 from $32.1 million for the quarter ended December 31, 2020.  This decrease was primarily due to the decrease in mortgage banking
1


income of $5.0 million, or 70.2%, to $2.1 million for the quarter ended December 31, 2021 from $7.1 million for the quarter ended December 31, 2020. This decrease in mortgage banking income reflects the continued impact of less favorable pricing in the secondary market. In addition, there was a decrease in insurance commission income of $2.0 million, or 100.0%. Partially offsetting these decreases was an increase in trust and brokerage income as growth in both customer accounts and market gains contributed to a $1.1 million, or 19.2%, increase over the prior year.
     
Noninterest expense decreased $6.6 million, or 7.1%, to $86.3 million for the quarter ended December 31, 2021, from $92.8 million for the quarter ended December 31, 2020. This decrease primarily resulted from a $4.4 million, or 61.1%, decrease in merger, asset disposition and restructuring expense to $2.8 million for the quarter ended December 31, 2021 from $7.2 million for the quarter ended December 31, 2020 due to both periods incurring expenses as part of branch optimization initiatives. In addition, other expenses decreased $2.4 million, or 63.9%, to $1.3 million for the quarter ended December 31, 2021 from $3.7 million for the quarter ended December 31, 2020 primarily due to a reduction in the unfunded loan loss reserve associated with improving credit trends for construction loans and undrawn lines of credit in the current year. Slightly offsetting this decrease was an increase in processing expenses of $1.5 million, or 11.9%, to $13.6 million for the quarter ended December 31, 2021 from $12.2 million for the quarter ended December 31, 2020 as we continue to invest in technology and infrastructure and as activity driven utilization fees for online and mobile banking and loan origination platforms have increased.

    Net income for the year ended December 31, 2021 was $154.3 million, or $1.21 per diluted share. This represents an increase of $79.5 million, or 106.2%, compared to the year ended December 31, 2020, when net income was $74.9 million, or $0.62 per diluted share. The annualized returns on average shareholders' equity and average assets for the year ended December 31, 2021 were 9.91% and 1.08% compared to 4.72% and 0.58% for the prior year. This increase in net income was the result of a decrease in provision for credit losses of $95.9 million primarily as a result of releasing reserves built up in the prior year due to the uncertainties around the impact of COVID-19. In addition, there was a $10.6 million, or 8.0%, increase in non-interest income largely due to the $25.3 million gain recognized on the sale of the insurance business in the second quarter of 2021, partially offset by a $15.5 million decrease in mortgage banking income which, as previously noted, is due to the impact of less favorable pricing in the secondary market. In addition, noninterest expense decreased $2.6 million, or 0.7%, primarily driven by acquisition and branch optimization costs in the prior year which were partially offset by MutualBank related increases in compensation as well as increased cost associated with our digital strategy rollout.

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, employee benefits and wealth management services. As of December 31, 2021, Northwest operates 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.
 
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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; and (7) increased risk associated with commercial real-estate and business loans. 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.
2


Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(dollars in thousands, except per share amounts)
December 31,
2021
September 30,
2021
December 31,
2020
Assets
Cash and cash equivalents$1,279,259 1,090,485 736,277 
Marketable securities available-for-sale (amortized cost of $1,565,002, $1,587,105 and $1,375,685, respectively)1,548,592 1,583,715 1,398,941 
Marketable securities held-to-maturity (fair value of $751,513, $609,777 and $179,666, respectively)768,154 618,395 178,887 
Total cash and cash equivalents and marketable securities3,596,005 3,292,595 2,314,105 
Residential mortgage loans held-for-sale25,056 27,411 58,786 
Residential mortgage loans2,969,564 2,962,110 3,009,335 
Home equity loans1,319,931 1,350,348 1,467,736 
Consumer loans1,838,748 1,816,836 1,507,993 
Commercial real estate loans3,015,484 3,162,551 3,345,889 
Commercial loans847,609 879,712 1,191,110 
Total loans receivable10,016,392 10,198,968 10,580,849 
Allowance for credit losses(102,241)(109,767)(134,427)
Loans receivable, net9,914,151 10,089,201 10,446,422 
FHLB stock, at cost14,184 14,567 21,748 
Accrued interest receivable25,599 26,995 35,554 
Real estate owned, net873 809 2,232 
Premises and equipment, net156,524 155,740 161,538 
Bank-owned life insurance256,213 254,871 253,951 
Goodwill380,997 380,997 382,279 
Other intangible assets, net12,836 14,041 19,936 
Other assets144,126 159,419 168,503 
Total assets$14,501,508 14,389,235 13,806,268 
Liabilities and shareholders’ equity  
Liabilities  
Noninterest-bearing demand deposits$3,099,526 3,052,115 2,716,224 
Interest-bearing demand deposits2,940,442 2,926,351 2,755,950 
Money market deposit accounts2,629,882 2,584,424 2,437,539 
Savings deposits2,303,760 2,271,496 2,047,424 
Time deposits1,327,555 1,387,827 1,642,096 
Total deposits12,301,165 12,222,213 11,599,233 
Borrowed funds139,093 126,496 159,715 
Subordinated debt123,575 123,486 123,329 
Junior subordinated debentures129,054 128,989 128,794 
Advances by borrowers for taxes and insurance44,582 26,951 45,230 
Accrued interest payable1,804 589 2,054 
Other liabilities178,664 198,743 209,210 
Total liabilities12,917,937 12,827,467 12,267,565 
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, 126,612,183, 126,521,344, and 127,019,452 shares issued and outstanding, respectively1,266 1,265 1,270 
Additional paid-in capital1,010,405 1,008,099 1,015,502 
Retained earnings609,529 604,787 555,480 
Accumulated other comprehensive loss(37,629)(52,383)(33,549)
Total shareholders’ equity1,583,571 1,561,768 1,538,703 
Total liabilities and shareholders’ equity$14,501,508 14,389,235 13,806,268 
Equity to assets10.92 %10.85 %11.14 %
Tangible common equity to assets*8.43 %8.34 %8.48 %
Book value per share$12.51 12.34 12.11 
Tangible book value per share*$9.40 9.22 8.95 
Closing market price per share$14.16 13.28 12.74 
Full time equivalent employees2,332 2,404 2,421 
Number of banking offices170 170 170 
*    Excludes goodwill and other intangible assets (non-GAAP).
3


Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)
 Quarter ended
 December 31, 2021September 30, 2021June 30,
2021
March 31, 2021December 31, 2020
 
Interest income:    
Loans receivable$95,295 97,475 95,255 102,318 105,681 
Mortgage-backed securities5,743 5,840 5,680 4,200 4,551 
Taxable investment securities640 649 693 634 471 
Tax-free investment securities688 628 594 575 656 
FHLB stock dividends82 71 138 116 192 
Interest-earning deposits467 352 192 183 178 
Total interest income102,915 105,015 102,552 108,026 111,729 
Interest expense:    
Deposits4,295 4,540 4,773 5,514 6,714 
Borrowed funds1,964 2,056 2,050 2,054 2,127 
Total interest expense6,259 6,596 6,823 7,568 8,841 
Net interest income96,656 98,419 95,729 100,458 102,888 
   Provision for credit losses(1,909)(4,354)— (5,620)(2,230)
Net interest income after provision for credit losses98,565 102,773 95,729 106,078 105,118 
Noninterest income: 
Gain/(loss) on sale of investments(4)(46)(105)(21)75 
Service charges and fees13,500 13,199 12,744 12,394 13,074 
Trust and other financial services income6,820 7,182 7,435 6,484 5,722 
Insurance commission income— 44 1,043 2,546 2,034 
Gain/(loss) on real estate owned, net71 247 166 (42)114 
Income from bank-owned life insurance1,343 1,332 1,639 1,736 1,330 
Mortgage banking income2,120 3,941 3,811 6,020 7,120 
Gain on sale of insurance business— — 25,327 — — 
Other operating income3,192 3,287 2,648 2,836 2,654 
Total noninterest income27,042 29,186 54,708 31,953 32,123 
Noninterest expense: 
Compensation and employee benefits48,691 49,063 48,894 47,239 48,209 
Premises and occupancy costs7,104 7,745 7,410 8,814 7,614 
Office operations3,144 4,143 3,317 3,165 4,009 
Collections expense602 411 303 616 893 
Processing expenses13,639 13,517 15,151 13,456 12,186 
Marketing expenses2,054 2,102 2,101 1,980 1,994 
Federal deposit insurance premiums1,131 1,184 1,353 1,307 1,651 
Professional services4,513 4,295 4,231 4,582 3,599 
Amortization of intangible assets1,205 1,321 1,433 1,594 1,664 
Real estate owned expense44 94 85 75 64 
Merger, asset disposition and restructuring expense2,812 — 632 7,238 
Other expenses1,346 2,227 1,422 3,354 3,728 
Total noninterest expense86,285 86,102 86,332 86,191 92,849 
Income before income taxes39,322 45,857 64,105 51,840 44,392 
Income tax expense9,266 10,794 15,138 11,603 9,327 
Net income$30,056 35,063 48,967 40,237 35,065 
Basic earnings per share$0.24 0.28 0.38 0.32 0.28 
Diluted earnings per share$0.24 0.27 0.38 0.32 0.28 
Annualized return on average equity7.65 %8.86 %12.58 %10.61 %9.00 %
Annualized return on average assets0.82 %0.97 %1.37 %1.17 %1.01 %
Annualized return on tangible common equity *10.02 %11.92 %16.66 %14.31 %12.27 %
Efficiency ratio **66.51 %66.44 %67.35 %63.88 %62.18 %
Annualized noninterest expense to average assets ***2.25 %2.33 %2.35 %2.45 %2.42 %
*     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).
4


Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)
Year ended December 31,
 20212020
Interest income:  
Loans receivable$390,343 410,907 
Mortgage-backed securities21,463 17,416 
Taxable investment securities2,616 1,985 
Tax-free investment securities2,485 2,060 
FHLB dividends407 981 
Interest-earning deposits1,194 719 
Total interest income418,508 434,068 
Interest expense:  
Deposits19,122 35,896 
Borrowed funds8,124 6,444 
Total interest expense27,246 42,340 
Net interest income391,262 391,728 
   Provision for credit losses(11,883)83,975 
Net interest income after provision for credit losses403,145 307,753 
Noninterest income:  
Gain/(loss) on sale of investments(176)236 
Gain on sale of loans— 1,302 
Service charges and fees51,837 55,613 
Trust and other financial services income27,921 20,922 
Insurance commission income3,633 9,132 
Gain/(loss) on real estate owned, net442 (106)
Income from bank-owned life insurance6,050 5,190 
Mortgage banking income15,892 31,391 
Gain on sale of insurance business25,327 — 
Other operating income11,963 8,585 
Total noninterest income142,889 132,265 
Noninterest expense:  
Compensation and employee benefits193,887 178,375 
Premises and occupancy costs31,073 30,622 
Office operations13,769 15,728 
Collections expense1,932 3,275 
Processing expenses55,763 50,050 
Marketing expenses8,237 7,695 
Federal deposit insurance premiums4,975 4,767 
Professional services17,621 12,482 
Amortization of intangible assets5,553 6,856 
Real estate owned expense298 359 
Merger, asset disposition and restructuring expense3,453 20,789 
Other expenses8,349 16,494 
Total noninterest expense344,910 347,492 
Income before income taxes201,124 92,526 
Income tax expense46,801 17,672 
Net income$154,323 74,854 
Basic earnings per share$1.22 0.62 
Diluted earnings per share$1.21 0.62 
Annualized return on average equity9.91 %4.72 %
Annualized return on average assets1.08 %0.58 %
Annualized return on tangible common equity *12.97 %6.59 %
Efficiency ratio **66.02 %61.04 %
Annualized noninterest expense to average assets ***2.35 %2.48 %
*     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).


5


Northwest Bancshares, Inc. and Subsidiaries
Asset Quality (Unaudited)
(dollars in thousands)
 December 31,
2021
September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
Nonaccrual loans current:     
Residential mortgage loans$1,354 2,015 189 164 21 
Home equity loans1,212 1,267 170 268 154 
Consumer loans1,336 1,465 188 225 207 
Commercial real estate loans106,233 111,075 138,820 146,304 20,317 
Commercial loans6,098 17,021 17,545 6,361 16,027 
Total nonaccrual loans current$116,233 132,843 156,912 153,322 36,726 
Nonaccrual loans delinquent 30 days to 59 days:   
Residential mortgage loans$244 99 68 1,261 647 
Home equity loans223 328 229 340 338 
Consumer loans241 152 230 254 301 
Commercial real estate loans239 205 1,589 965 1,416 
Commercial loans53 102 406 1,538 87 
Total nonaccrual loans delinquent 30 days to 59 days$1,000 886 2,522 4,358 2,789 
Nonaccrual loans delinquent 60 days to 89 days:     
Residential mortgage loans$1,163 527 207 813 767 
Home equity loans61 142 310 417 190 
Consumer loans292 291 297 649 583 
Commercial real estate loans364 419 198 1,877 714 
Commercial loans218 170 21 7,919 48 
Total nonaccrual loans delinquent 60 days to 89 days$2,098 1,549 1,033 11,675 2,302 
Nonaccrual loans delinquent 90 days or more:     
Residential mortgage loans$7,641 8,069 10,007 9,333 14,489 
Home equity loans4,262 4,745 6,256 7,044 8,441 
Consumer loans2,069 2,184 2,341 3,625 5,473 
Commercial real estate loans24,063 25,562 23,564 29,737 25,287 
Commercial loans1,105 1,104 4,126 4,860 7,325 
Total nonaccrual loans delinquent 90 days or more$39,140 41,664 46,294 54,599 61,015 
Total nonaccrual loans$158,471 176,942 206,761 223,954 102,832 
Total nonaccrual loans$158,471 176,942 206,761 223,954 102,832 
Loans 90 days past due and still accruing331 386 302 197 585 
Nonperforming loans158,802 177,328 207,063 224,151 103,417 
Real estate owned, net873 809 1,353 1,738 2,232 
Nonperforming assets$159,675 178,137 208,416 225,889 105,649 
Nonaccrual troubled debt restructuring *$17,216 12,858 8,951 7,390 10,704 
Accruing troubled debt restructuring13,072 13,664 18,480 20,120 21,431 
Total troubled debt restructuring$30,288 26,522 27,431 27,510 32,135 
Nonperforming loans to total loans1.59 %1.74 %2.01 %2.16 %0.98 %
Nonperforming assets to total assets1.10 %1.24 %1.46 %1.58 %0.77 %
Allowance for credit losses to total loans1.02 %1.08 %1.14 %1.20 %1.27 %
Allowance for total loans excluding PPP loan balances1.03 %1.09 %1.17 %1.24 %1.32 %
Allowance for credit losses to nonperforming loans64.38 %61.90 %56.66 %55.32 %129.99 %
*    Amounts included in nonperforming loans above.
6


Northwest Bancshares, Inc. and Subsidiaries
Loans by Credit Quality Indicators (Unaudited)
(dollars in thousands)
At December 31, 2021PassSpecial
   mention*
Substandard
**
DoubtfulLossLoans
receivable
Personal Banking:      
Residential mortgage loans$2,978,080 — 16,540 — — 2,994,620 
Home equity loans1,312,820 — 7,111 — — 1,319,931 
Consumer loans1,834,478 — 4,270 — — 1,838,748 
Total Personal Banking6,125,378 — 27,921 — — 6,153,299 
Commercial Banking:      
Commercial real estate loans2,639,676 74,123 301,685 — — 3,015,484 
Commercial loans808,323 5,730 33,556 — — 847,609 
Total Commercial Banking3,447,999 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 loans1,342,479 — 7,869 — — 1,350,348 
Consumer loans1,812,360 — 4,476 — — 1,816,836 
Total Personal Banking6,127,328 — 29,377 — — 6,156,705 
Commercial Banking:      
Commercial real estate loans2,799,592 63,034 299,925 — — 3,162,551 
Commercial loans813,665 10,976 55,071 — — 879,712 
Total Commercial Banking3,613,257 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 loans1,367,765 — 8,463 — — 1,376,228 
Consumer loans1,741,872 — 3,359 — — 1,745,231 
Total Personal Banking6,047,055 — 28,955 — — 6,076,010 
Commercial Banking:      
Commercial real estate loans2,781,734 73,167 360,288 — — 3,215,189 
Commercial loans943,665 11,266 63,850 — — 1,018,781 
Total Commercial Banking3,725,399 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 loans1,396,757 — 10,767 — — 1,407,524 
Consumer loans1,547,502 — 6,853 — — 1,554,355 
Total Personal Banking5,894,362 — 39,195 — — 5,933,557 
Commercial Banking:      
Commercial real estate loans2,801,082 120,345 368,009 — — 3,289,436 
Commercial loans1,061,884 22,623 60,540 — — 1,145,047 
Total Commercial Banking3,862,966 142,968 428,549 — — 4,434,483 
Total loans$9,757,328 142,968 467,744 — — 10,368,040 
At December 31, 2020
Personal Banking:      
Residential mortgage loans$3,042,544 — 25,577 — — 3,068,121 
Home equity loans1,455,474 — 12,262 — — 1,467,736 
Consumer loans1,499,004 — 8,989 — — 1,507,993 
Total Personal Banking5,997,022 — 46,828 — — 6,043,850 
Commercial Banking:      
Commercial real estate loans2,852,705 108,021 385,163 — — 3,345,889 
Commercial loans1,092,498 41,278 57,334 — — 1,191,110 
Total Commercial Banking3,945,203 149,299 442,497 — — 4,536,999 
Total loans$9,942,225 149,299 489,325 — — 10,580,849 
*     Includes $14.9 million, $16.7 million, $16.7 million, $26.4 million, and $31.3 million of acquired loans at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.
**     Includes $81.5 million, $110.4 million, $122.5 million, $143.2 million, and $153.2 million of acquired loans at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

7


Northwest Bancshares, Inc. and Subsidiaries
Loan Delinquency (Unaudited)
(dollars in thousands)
December 31,
2021
*September 30, 2021*June 30,
2021
*March 31,
2021
*December 31,
2020
*
(Number of loans and dollar amount of loans)               
Loans delinquent 30 days to 59 days:  
Residential mortgage loans277 $20,567 0.7 %17 $765 — %13 $606 — %248 $22,236 0.7 %315 $28,797 0.9 %
Home equity loans112 3,153 0.2 %101 3,351 0.2 %91 3,677 0.3 %84 3,334 0.2 %138 4,763 0.3 %
Consumer loans589 6,536 0.4 %576 6,146 0.3 %532 5,571 0.3 %535 5,732 0.4 %1,279 10,574 0.7 %
Commercial real estate loans17 17,065 0.6 %19 2,004 0.1 %13 2,857 0.1 %33 12,240 0.4 %43 10,923 0.3 %
Commercial loans12 193 — %10 692 0.1 %15 686 0.1 %16 3,032 0.3 %37 6,405 0.5 %
Total loans delinquent 30 days to 59 days1,007 $47,514 0.5 %723 $12,958 0.1 %664 $13,397 0.1 %916 $46,574 0.4 %1,812 $61,462 0.6 %
Loans delinquent 60 days to 89 days:            
Residential mortgage loans59 $5,433 0.2 %55 $4,907 0.2 %58 $4,051 0.1 %26 $2,062 0.1 %84 $5,083 0.2 %
Home equity loans30 949 0.1 %29 1,024 0.1 %36 1,502 0.1 %31 953 0.1 %47 1,656 0.1 %
Consumer loans195 2,006 0.1 %180 1,757 0.1 %181 1,988 0.1 %169 1,868 0.1 %322 2,742 0.2 %
Commercial real estate loans769 — %1,170 — %1,335 — %14 7,609 0.2 %11 1,615 — %
Commercial loans10 727 0.1 %170 — %27 — %12 8,979 0.8 %10 864 0.1 %
Total loans delinquent 60 days to 89 days299 $9,884 0.1 %274 $9,028 0.1 %286 $8,903 0.1 %252 $21,471 0.2 %474 $11,960 0.1 %
Loans delinquent 90 days or more: **               
Residential mortgage loans87 $7,641 0.3 %95 $8,069 0.3 %115 $10,007 0.3 %121 $9,333 0.3 %168 $14,489 0.5 %
Home equity loans105 4,262 0.3 %119 4,745 0.4 %146 6,256 0.5 %176 7,044 0.5 %207 8,441 0.6 %
Consumer loans296 2,400 0.1 %308 2,568 0.1 %356 2,643 0.2 %454 3,822 0.2 %720 6,058 0.4 %
Commercial real estate loans52 24,063 0.8 %59 25,562 0.8 %83 23,564 0.7 %113 29,737 0.9 %119 25,287 0.8 %
Commercial loans1,105 0.1 %10 1,104 0.1 %18 4,126 0.4 %31 4,860 0.4 %37 7,325 0.6 %
Total loans delinquent 90 days or more548 $39,471 0.4 %591 $42,048 0.4 %718 $46,596 0.5 %895 $54,796 0.5 %1,251 $61,600 0.6 %
Total loans delinquent1,854 $96,869 1.0 %1,588 $64,034 0.6 %1,668 $68,896 0.7 %2,063 $122,841 1.2 %3,537 $135,022 1.3 %
*    Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
**    Includes purchased credit deteriorated loans of $7.3 million, $8.4 million, $10.3 million, $12.7 million, and $6.6 million at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020.
















8


Northwest Bancshares, Inc. and Subsidiaries
Allowance for Credit Losses (Unaudited)
(dollars in thousands)
Quarter ended
 December 31,
2021
September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
Beginning balance$109,767 117,330 123,997 134,427 140,209 
Provision(1,909)(4,354)— (5,620)(2,230)
Charge-offs residential mortgage(784)(1,263)(770)(855)(407)
Charge-offs home equity(1,299)(1,474)(379)(228)(58)
Charge-offs consumer(2,897)(2,148)(2,401)(2,603)(2,623)
Charge-offs commercial real estate(2,652)(1,581)(3,964)(4,626)(2,770)
Charge-offs commercial(2,586)(412)(1,161)(54)(156)
Recoveries4,601 3,669 2,008 3,556 2,462 
Ending balance$102,241 109,767 117,330 123,997 134,427 
Net charge-offs to average loans, annualized0.22 %0.12 %0.26 %0.19 %0.13 %
Year ended December 31,
20212020
Beginning balance$134,427 57,941 
CECL adoption— 10,792 
Initial allowance on loans purchased with credit deterioration— 8,845 
Provision(11,883)83,975 
Charge-offs residential mortgage(3,672)(917)
Charge-offs home equity(3,380)(608)
Charge-offs consumer(10,049)(12,658)
Charge-offs commercial real estate(12,823)(4,323)
Charge-offs commercial(4,213)(16,212)
Recoveries13,834 7,592 
Ending balance$102,241 134,427 
Net charge-offs to average loans0.20 %0.27 %
December 31, 2021
Originated loansAcquired loansTotal loans
BalanceReserveBalanceReserveBalanceReserve
Residential mortgage loans$2,783,459 6,621 211,161 752 2,994,620 7,373 
Home equity loans1,107,202 4,243 212,729 1,057 1,319,931 5,300 
Consumer loans1,692,207 16,775 146,541 1,592 1,838,748 18,367 
Personal Banking Loans5,582,868 27,639 570,431 3,401 6,153,299 31,040 
Commercial real estate loans2,523,280 48,503 492,204 9,521 3,015,484 58,024 
Commercial loans765,877 10,608 81,732 2,569 847,609 13,177 
Commercial Banking Loans3,289,157 59,111 573,936 12,090 3,863,093 71,201 
Total Loans$8,872,025 86,750 1,144,367 15,491 10,016,392 102,241 

9



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 
December 31, 2021September 30, 2021June 30, 2021March 31, 2021December 31, 2020
Average
balance
InterestAvg.
yield/
cost (i)
Average
balance
InterestAvg.
yield/
cost (i)
Average
balance
InterestAvg.
yield/
cost (i)
Average
balance
InterestAvg.
yield/
cost (i)
Average
balance
InterestAvg.
yield/
cost (i)
Assets:              
Interest-earning assets:              
Residential mortgage loans$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 %$3,089,916 27,503 3.56 %
Home equity loans1,328,553 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 %1,472,527 13,535 3.66 %
Consumer loans1,756,620 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 %1,444,860 15,874 4.37 %
Commercial real estate loans3,113,924 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 %3,317,418 37,965 4.48 %
Commercial loans855,998 9,154 4.18 %975,603 9,096 3.65 %1,133,969 9,978 3.48 %1,189,812 10,566 3.55 %1,325,047 11,414 3.37 %
Total loans receivable (a) (b) (d)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 %10,649,768 106,291 3.97 %
Mortgage-backed securities (c)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 %1,166,739 4,551 1.56 %
Investment securities (c) (d)358,558 1,535 1.71 %348,619 1,466 1.68 %364,414 1,466 1.61 %331,358 1,381 1.67 %252,898 1,380 2.18 %
FHLB stock, at cost14,459 82 2.25 %21,607 71 1.31 %23,107 138 2.40 %21,811 116 2.17 %23,346 192 3.27 %
Other interest-earning deposits1,168,449 467 0.16 %905,130 352 0.15 %810,741 192 0.09 %801,119 183 0.09 %632,494 178 0.11 %
Total interest-earning assets13,469,186 103,576 3.05 %13,334,162 105,741 3.15 %13,251,835 103,199 3.12 %12,885,282 108,664 3.42 %12,725,245 112,592 3.52 %
Noninterest-earning assets (e)1,004,905 1,074,122 1,104,924 1,102,477 1,066,609 
Total assets$14,474,091   $14,408,284   $14,356,759   $13,987,759  $13,791,854   
Liabilities and shareholders’ equity:               
Interest-bearing liabilities:               
Savings deposits$2,282,606 622 0.11 %$2,271,365 603 0.11 %$2,255,578 590 0.10 %$2,118,030 625 0.12 %$2,028,155 617 0.12 %
Interest-bearing demand deposits2,933,466 411 0.06 %2,890,905 414 0.06 %2,840,949 407 0.06 %2,783,429 429 0.06 %2,699,515 476 0.07 %
Money market deposit accounts2,618,177 656 0.10 %2,565,159 637 0.10 %2,537,629 621 0.10 %2,497,495 657 0.11 %2,426,513 960 0.16 %
Time deposits1,356,513 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 %1,676,094 4,660 1.11 %
Borrowed funds (f)135,038 159 0.47 %131,199 154 0.47 %131,240 150 0.46 %143,806 154 0.43 %229,109 213 0.37 %
Subordinated debt (g)123,514 1,180 3.82 %123,513 1,277 4.10 %123,443 1,264 4.11 %123,357 1,258 4.14 %123,283 1,256 4.05 %
Junior subordinated debentures129,012 625 1.89 %128,946 625 1.90 %128,882 636 1.95 %128,817 642 1.99 %128,752 659 2.00 %
Total interest-bearing liabilities9,578,326 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 %9,311,421 8,841 0.38 %
Noninterest-bearing demand deposits (h)3,093,518 3,058,819 3,036,202 2,805,206 2,675,986 
Noninterest-bearing liabilities242,620 244,402 247,930 265,667 253,966 
Total liabilities12,914,464   12,837,349   12,795,800   12,449,332   12,241,373  
Shareholders’ equity1,559,627 1,570,935 1,560,959 1,538,427 1,550,481  
Total liabilities and shareholders’ equity$14,474,091   $14,408,284   $14,356,759   $13,987,759