PR Newswire | Oct 26, 2020 09:02AM EDT

Dividend

10/26 08:00 CDT

Northwest Bancshares, Inc. Announces Third Quarter 2020 Earnings and Quarterly Dividend WARREN, Pa., Oct. 26, 2020

WARREN, Pa., Oct. 26, 2020 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2020 of $38.1 million, or $0.30 per diluted share. This represents an increase of $4.6 million, or 13.9%, compared to the same quarter last year when net income was $33.4 million, or $0.31 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended September 30, 2020 were 9.82% and 1.09% compared to 9.90% and 1.25% for the same quarter last year. As noted in the non-GAAP reconciliation, when adjusting for COVID-related provision expense and branch optimization related costs, non-GAAP net income was approximately $40.1 million, or $0.32 per diluted share, which would represent an increase over the same quarter in the prior year of $6.7 million, or 20.0%, and result in a return on average shareholders' equity of 10.36% and a return on average assets of 1.15%.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.19 per share payable on November 16, 2020 to shareholders of record as of November 5, 2020. This is the 104th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of September 30, 2020, this represents an annualized dividend yield of approximately 8.26%.

In making this announcement, Ronald J. Seiffert, Chairman, President and CEO, noted, "We are very pleased with the many positive results in the current quarter beginning once again with strong fee income led by our mortgage banking operations. We are also delighted to report that our credit loss provision decreased significantly from the first and second quarters, as expected, and essentially mirrored net charge-offs in the third quarter. From a credit quality perspective, delinquencies continue to be well maintained and loans requesting payment deferrals have decreased significantly from last quarter from $1.312 billion, or 12.1% of the loan portfolio, at June 30, 2020 to just $212.7 million, or 2.0%, at September 30, 2020. Although classified assets jumped by $161.3 million, or 54.4%, during the quarter to $457.8 million, over 45% of total classified assets are in the hotel/hospitality industry with virtually all the increase attributable to downgrades in this sector as second deferral requests were considered."

Mr. Seiffert continued, "Looking ahead, we are anxious to execute upon the initiatives we have set in motion this year including branch optimization to be completed in December, the continued implementation of our digital strategy and capitalizing on our very successful subordinated debt offering."

Net interest income increased by $12.6 million, or 13.9%, to $103.5 million for the quarter ended September 30, 2020, from $90.9 million for the quarter ended September 30, 2019, largely due to a $6.2 million, or 6.1%, increase in interest income on loans receivable. This increase in interest income was mainly due to an increase of $2.031 billion, or 23.2%, in the average balance of loans, primarily as a result of the acquisition of MutualBank during the second quarter of 2020. Also contributing to this increase in net interest income was a decrease of $6.1 million, or 38.0%, in total interest expense due to a decline in market interest rates when compared to the prior year, resulting in a decrease in the cost of our interest-bearing liabilities to 0.42% for the quarter ended September 30, 2020 from 0.89% for the quarter ended September 30, 2019. Despite the overall increase in net interest income, net interest margin decreased to 3.26% for the quarter ended September 30, 2020 from 3.79% for the same quarter last year as interest earning asset yields decreased to 3.55% for the quarter ended September 30, 2020 from 4.41% for the quarter ended September 30, 2019. Contributing to the decline in asset yields was the increase in average cash balances of $762.8 million, earning just 0.11%, due to deposit growth associated with Payroll Protection Program ("PPP") loan funds and consumer stimulus checks. In addition, PPP loan balances of approximately $500 million with coupon rates of 1.00%, have negatively impacted overall interest earning asset yields.

The provision for credit losses increased by $3.5 million to $6.8 million for the quarter ended September 30, 2020, from $3.3 million for the quarter ended September 30, 2019. During the current year, the Company adopted ASU 2016-13, referred to as Current Expected Credit Losses ("CECL"), which requires that all financial assets measured at amortized cost be presented at the net amount expected to be collected inclusive of the entity's current estimate of all lifetime expected credit losses. In addition, the estimated economic impact of COVID-19 caused us to increase our provision expense for the quarter by approximately $1.5 million. Finally, total classified loans have increased to $457.8 million, or 4.25% of total loans, at September 30, 2020 from $205.9 million, or 2.33% of total loans, as of September 30, 2019.

Noninterest income increased by $10.5 million, or 40.1%, to $36.7 million for the quarter ended September 30, 2020, from $26.2 million for the quarter ended September 30, 2019. This increase was primarily due to the increase in mortgage banking income of $9.1 million to $11.1 million for the quarter ended September 30, 2020 from $1.9 million for the quarter ended September 30, 2019. This increase was due to continued efforts to expand our secondary market sales capabilities over the last year, as well as an interest rate environment conducive to refinance activity and attractive secondary market pricing. In addition, there was a $796,000, or 5.9%, increase in service charges and fees and a $767,000, or 16.6%, increase in trust and other financial services income, both primarily due to additional fee income as a result of the acquisition of MutualBank.

Noninterest expense increased by $16.3 million, or 23.1%, to $86.9 million for the quarter ended September 30, 2020, from $70.6 million for the quarter ended September 30, 2019. This increase resulted primarily from an increase of $6.6 million, or 16.1%, in compensation and employee benefits due to both internal growth in compensation and staff as well as the addition of MutualBank employees. Also contributing to this increase was an increase of $3.9 million, or 35.2%, in processing expenses as we continue to invest in technology and infrastructure and as activity driven utilization fees for online and mobile banking and loan origination platforms has increased. Lastly, FDIC insurance premiums increased $2.2 million due to assessment credits received in the previous year.

The provision for income taxes decreased by $1.3 million, or 13.5%, to $8.5 million for the quarter ended September 30, 2020, from $9.8 million for the quarter ended September 30, 2019. This decrease was due primarily to a lower annual effective tax rate as a result of the lower year-to-date income before taxes in the current year as well as a change in state tax apportionment.

Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the 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, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. As of September 30, 2020, Northwest operated 205 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)

September 30, December 31,September 30, 2020 2019 2019

Assets

Cash and cash equivalents $656,749 60,846 107,602

Marketable securities available-for-sale (amortized cost of $1,385,835, 1,409,150 819,901 807,823 $815,495 and $801,465, respectively)

Marketable securities held-to-maturity (fair value of $16,168, $18,223 and 15,333 18,036 18,958 $19,237, respectively)

Total cash and cash equivalents and marketable securities 2,081,232 898,783 934,383

Residential mortgage loans held-for-sale 25,140 7,709 8,859

Residential mortgage loans 3,118,229 2,860,418 2,887,274

Home equity loans 1,484,365 1,342,918 1,328,173

Consumer loans 1,487,083 1,125,132 1,094,293

Commercial real estate loans 3,319,743 2,754,390 2,812,839

Commercial loans 1,347,292 718,107 720,579

Total loans receivable 10,781,852 8,808,674 8,852,017

Allowance for credit losses (140,209) (57,941) (52,859)

Loans receivable, net 10,641,643 8,750,733 8,799,158



Federal Home Loan Bank stock, at cost 23,171 14,740 21,401

Accrued interest receivable 36,916 25,755 27,069

Real estate owned, net 2,575 950 1,237

Premises and equipment, net 166,919 147,409 148,796

Bank-owned life insurance 252,621 189,091 187,971

Goodwill 386,044 346,103 344,720

Other intangible assets, net 21,601 23,076 22,410

Other assets 176,083 97,268 93,329

Total assets $13,788,805 10,493,908 10,580,474

Liabilities and shareholders' equity

Liabilities

Noninterest-bearing demand deposits $2,641,234 1,609,653 1,905,650

Interest-bearing demand deposits 2,663,878 1,944,108 1,678,644

Money market deposit accounts 2,396,567 1,863,998 1,828,001

Savings deposits 2,022,918 1,604,838 1,635,754

Time deposits 1,732,022 1,569,410 1,633,451

Total deposits 11,456,619 8,592,007 8,681,500



Borrowed funds 398,216 246,336 255,257

Junior subordinated debentures 128,729 121,800 121,787

Advances by borrowers for taxes and insurance 29,755 44,556 24,331

Accrued interest payable 1,002 1,142 1,314

Other liabilities 227,253 134,782 144,515

Total liabilities 12,241,574 9,140,623 9,228,704

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, 127,801,297, 1,278 1,069 1,067 106,859,088, and 106,658,067 shares issued and outstanding, respectively

Paid-in capital 1,023,827 805,750 801,382

Retained earnings 544,695 583,407 577,018

Accumulated other comprehensive loss (22,569) (36,941) (27,697)

Total shareholders' equity 1,547,231 1,353,285 1,351,770

Total liabilities and shareholders' equity $13,788,805 10,493,908 10,580,474



Equity to assets 11.22 %12.90 %12.78 %

Tangible common equity to assets 8.52 %9.72 %9.64 %

Book value per share $12.11 12.66 12.67

Tangible book value per share $8.92 9.21 9.23

Closing market price per share $9.20 16.63 16.39

Full time equivalent employees 2,523 2,209 2,218

Number of banking offices 213 181 182

Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts)

Quarter ended

September 30,June 30, March 31, December 31, September 30,2020 2020 2020 2019 2019

Interest income:

Loans receivable $ 107,241 103,012 94,973 97,866 101,091

Mortgage-backed securities 4,652 4,038 4,175 4,237 4,188

Taxable investment securities 427 439 648 683 884

Tax-free investment securities 655 564 185 201 224

FHLB dividends 218 309 262 262 307

Interest-earning deposits 221 185 135 169 172

Total interest income 113,414 108,547 100,378 103,418 106,866

Interest expense:

Deposits 8,443 9,336 11,403 12,893 13,694

Borrowed funds 1,437 1,133 1,747 1,580 2,236

Total interest expense 9,880 10,469 13,150 14,473 15,930

Net interest income 103,534 98,078 87,228 88,945 90,936

Provision for credit losses 6,818 51,750 27,637 8,223 3,302

Net interest income after provision for credit losses96,716 46,328 59,591 80,722 87,634

Noninterest income:

Gain/(loss) on sale of investments (12) (8) 181 27 -

Gain on sale of loans - - 1,302 908 826

Service charges and fees 14,354 13,069 15,116 14,125 13,558

Trust and other financial services income 5,376 4,823 5,001 4,517 4,609

Insurance commission income 2,331 2,395 2,372 1,858 1,887

Gain/(loss) on real estate owned, net (32) (97) (91) 86 (227)

Income from bank-owned life insurance 1,576 1,248 1,036 1,121 1,095

Mortgage banking income 11,055 12,022 1,194 1,494 1,921

Other operating income 2,022 2,044 1,865 4,077 2,500

Total noninterest income 36,670 35,496 27,976 28,213 26,169

Noninterest expense:

Compensation and employee benefits 47,371 40,049 42,746 42,074 40,816

Premises and occupancy costs 8,342 7,195 7,471 7,051 7,061

Office operations 4,626 3,711 3,382 4,097 3,197

Collections expense 1,264 644 474 566 747

Processing expenses 15,042 11,680 11,142 10,263 11,122

Marketing expenses 2,147 2,047 1,507 1,010 1,373

Federal deposit insurance premiums 1,498 1,618 - - (702)

Professional services 3,246 2,825 2,812 3,533 3,032

Amortization of intangible assets 1,781 1,760 1,651 1,634 1,702

Real estate owned expense 111 89 95 72 119

Acquisition/branch optimization expense 1,414 9,679 2,458 1,114 23

Other expenses 27 7,866 4,873 5,157 2,106

Total noninterest expense 86,869 89,163 78,611 76,571 70,596

Income/(loss) before income taxes 46,517 (7,339) 8,956 32,364 43,207

Income tax expense/(benefit) 8,467 (1,139) 1,017 6,773 9,793

Net income/(loss) $ 38,050 (6,200) 7,939 25,591 33,414



Basic earnings per share $ 0.30 (0.05) 0.08 0.24 0.32

Diluted earnings per share $ 0.30 (0.05) 0.07 0.24 0.31



Weighted average common shares outstanding - basic 126,855,810 121,480,563 105,882,553 105,627,194 105,517,707

Weighted average common shares outstanding - diluted 126,855,810 121,480,563 106,148,247 106,306,615 106,270,544



Annualized return on average equity 9.82 %(1.63) %2.37 %7.52 %9.90 %

Annualized return on average assets 1.09 %(0.18) %0.30 %0.97 %1.25 %

Annualized return on tangible common equity ** 13.28 %(2.22) %3.28 %10.32 %13.46 %



Efficiency ratio * 59.68 %58.19 %64.67 %63.01 %58.81 %

Annualized noninterest expense to average assets * 2.39 %2.30 %2.83 %2.80 %2.59 %

* Excludes acquisition/branch optimization expenses and amortization ofintangible assets (non-GAAP).

** 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)

Nine months ended September 30,

2020 2019

Interest income:

Loans receivable $305,226 296,943

Mortgage-backed securities 12,865 12,433

Taxable investment securities 1,514 2,718

Tax-free investment securities 1,404 643

FHLB dividends 789 794

Interest-earning deposits 541 431

Total interest income 322,339 313,962

Interest expense:

Deposits 29,182 36,323

Borrowed funds 4,317 6,118

Total interest expense 33,499 42,441

Net interest income 288,840 271,521

Provision for credit losses 86,205 14,436

Net interest income after provision for credit losses202,635 257,085

Noninterest income:

Gain on sale of investments 161 23

Gain on sale of loans 1,302 826

Service charges and fees 42,539 38,940

Trust and other financial services income 15,200 13,248

Insurance commission income 7,098 6,210

Loss on real estate owned, net (220) (139)

Income from bank-owned life insurance 3,860 3,297

Mortgage banking income 24,271 2,325

Other operating income 5,931 6,464

Total noninterest income 100,142 71,194

Noninterest expense:

Compensation and employee benefits 130,166 121,012

Premises and occupancy costs 23,008 21,666

Office operations 11,719 10,036

Collections expense 2,382 1,994

Processing expenses 37,864 32,190

Marketing expenses 5,701 5,988

Federal deposit insurance premiums 3,116 685

Professional services 8,883 8,754

Amortization of intangible assets 5,192 4,909

Real estate owned expense 295 406

Acquisition/branch optimization expense 13,551 3,054

Other expenses 12,766 8,838

Total noninterest expense 254,643 219,532

Income before income taxes 48,134 108,747

Income tax expense 8,345 23,906

Net income $39,789 84,841



Basic earnings per share $0.34 0.81

Diluted earnings per share $0.34 0.80



Weighted average common shares outstanding - basic 118,088,122 104,626,560

Weighted average common shares outstanding - diluted 118,088,122 105,681,615



Annualized return on average equity 3.33 %8.65 %

Annualized return on average assets 0.42 %1.10 %

Annualized return on tangible common equity ** 4.66 %11.52 %



Efficiency ratio * 60.65 %61.73 %

Annualized noninterest expense to average assets * 2.50 %2.75 %

* Excludes acquisition/branch optimization expenses and amortization ofintangible assets (non-GAAP).

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

Northwest Bancshares, Inc. and Subsidiaries Reconciliation of Non-GAAP to GAAP Net Income (Unaudited) * (dollars in thousands, except per share amounts)

Quarter ended September 30,Nine months ended September 30,

2020 2019 2020 2019

Operating results (non-GAAP):

Net interest income $103,534 90,936 288,840 271,521

Provision for credit losses 5,349 3,302 21,551 14,436

Noninterest income 36,670 26,169 100,142 71,194

Noninterest expense 85,455 70,573 243,092 216,478

Income taxes 9,274 9,799 29,682 24,761

Net operating income (non-GAAP) $40,126 33,431 94,657 87,040

Diluted earnings per share (non-GAAP) $0.32 0.31 0.80 0.82



Average equity $1,540,934 1,339,339 1,596,252 1,312,002

Average assets 13,903,655 10,568,279 12,590,018 10,289,453

Annualized return on average equity (non-GAAP) 10.36 %9.90 %7.92 %8.87 %

Annualized return on average assets (non-GAAP) 1.15 %1.26 %1.00 %1.13 %



Reconciliation of net operating income to net income:

Net operating income (non-GAAP) $40,126 33,431 94,657 87,040

Non-GAAP adjustments, net of tax:

COVID-related provision ** (1,058) - (33,462) -

CECL provision impact due to acquisition of MutualBank- - (13,089) -

PPP deferred origination costs - - 3,034 -

COVID-related off balance sheet provision ** - - (1,594) -

Acquisition/branch optimization expense (1,018) (17) (9,757) (2,199)

Net income (GAAP) $38,050 33,414 39,789 84,841

Diluted earnings per share (GAAP) $0.30 0.31 0.34 0.80



Annualized return on average equity (GAAP) 9.82 %9.90 %3.33 %8.65 %

Annualized return on average assets (GAAP) 1.09 %1.25 %0.42 %1.10 %

The table summarizes the Company's results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude estimated COVID-related provision, CECL provision related to the acquisition of MutualBank, PPP deferred origination costs, estimated* COVID-related off balance sheet provision and acquisition/branch optimization expense. The net tax effect was calculated using statutory tax rates of approximately 28.0%. The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.

To arrive at the non-COVID related provision estimates, the Company applied** Moody's forecast scenarios prior to the onset of COVID-19 to the Company's loan portfolio at September 30, 2020.

Northwest Bancshares, Inc. and Subsidiaries Regulatory Capital Requirements (Unaudited) (dollars in thousands)

At September 30, 2020

Actual Minimum capital Well capitalized requirements (1) requirements

Amount Ratio Amount Ratio Amount Ratio

Total capital (to risk weighted assets)

Northwest Bancshares, Inc. $1,655,94916.607%$1,046,98110.500%$997,12510.000%

Northwest Bank 1,445,508 14.512%1,045,896 10.500%996,092 10.000%



Tier 1 capital (to risk weighted assets)

Northwest Bancshares, Inc. 1,521,913 15.263%847,556 8.500 %797,700 8.000 %

Northwest Bank 1,311,472 13.166%846,678 8.500 %796,873 8.000 %



Common equity tier 1 capital (to risk weighted assets)

Northwest Bancshares, Inc. 1,273,896 12.776%697,988 7.000 %648,131 6.500 %

Northwest Bank 1,311,472 13.166%697,264 7.000 %647,460 6.500 %



Tier 1 capital (leverage) (to average assets)

Northwest Bancshares, Inc. 1,521,913 10.977%554,608 4.000 %693,260 5.000 %

Northwest Bank 1,311,472 9.522 %550,907 4.000 %688,634 5.000 %

Amounts and ratios include the capital conservation buffer of 2.5%, which does not apply to Tier 1 capital to average assets (leverage ratio). For(1) further information related to the capital conservation buffer, see "Item 1. Business - Supervision and Regulation" of our 2019 Annual Report on Form 10-K.

Northwest Bancshares, Inc. and Subsidiaries Marketable Securities (Unaudited) (dollars in thousands)

September 30, 2020

Gross Gross Marketable securities Amortized unrealizedunrealizedFair valueavailable-for-sale cost holding holding gains losses

Debt issued by the U.S. government and agencies:

Due after ten years $34,000 176 - 34,176



Debt issued by government sponsored enterprises:

Due in less than one 35,731 284 - 36,015 year

Due in one year through 253 4 - 257 five years

Due in five years 69,135 170 (178) 69,127 through ten years



Municipal securities:

Due in less than one 4,241 18 - 4,259 year

Due in one year through 3,343 73 (2) 3,414 five years

Due in five years 11,077 312 - 11,389 through ten years

Due after ten years 92,530 2,930 - 95,460



Residential mortgage-backed securities:

Fixed rate pass-through 356,898 6,467 (102) 363,263

Variable rate 15,798 538 (18) 16,318 pass-through

Fixed rate agency CMOs 710,620 13,035 (722) 722,933

Variable rate agency 52,209 369 (39) 52,539 CMOs

Total residential 1,135,525 20,409 (881) 1,155,053mortgage-backed securities

Total marketable securities $1,385,83524,376 (1,061) 1,409,150available-for-sale



Marketable securities held-to-maturity

Residential mortgage-backed securities:

Fixed rate pass-through $1,823 128 - 1,951

Variable rate 970 33 - 1,003 pass-through

Fixed rate agency CMOs 11,936 659 - 12,595

Variable rate agency 604 15 - 619 CMOs

Total residential 15,333 835 - 16,168 mortgage-backed securities

Total marketable $15,333 835 - 16,168 securities held-to-maturity

Northwest Bancshares, Inc. and Subsidiaries Borrowed Funds (Unaudited) (dollars in thousands)

September 30, 2020

Amount Average rate

Term notes payable to the Federal Home Loan Bank (FHLB):

Payable to FHLB of Pittsburgh $30,000 0.40 %

Payable to the FHLB of Indianapolis acquired from 118,107 1.70 %MutualBank

Total term notes payable to the FHLB 148,107

Collateralized borrowings, due within one year 126,832 0.19 %

Subordinated debentures, net of issuance costs $123,2774.00 %

Total borrowed funds * $398,216

As of September 30, 2020, the Company had $3.8 billion of additional borrowing capacity available with the Federal Home Loan Bank of Pittsburgh,* including a $250.0 million overnight line of credit, which had no balance, as well as $103.0 million of borrowing capacity available with the Federal Reserve Bank and $110.0 million with three correspondent banks.

Northwest Bancshares, Inc. and Subsidiaries Asset Quality (Unaudited) (dollars in thousands)

September June 30, March DecemberSeptember 30, 2020 31, 31, 30, 2020 2020 2019 2019

Nonaccrual loans current:

Residential mortgage $1,128 413 285 72 676 loans

Home equity loans 366 481 592 197 607

Consumer loans 234 214 77 78 68

Commercial real estate 22,610 30,677 14,337 9,241 7,674 loans

Commercial loans 6,488 6,551 3,514 3,424 3,777

Total nonaccrual loans $30,826 38,336 18,805 13,012 12,802 current

Nonaccrual loans delinquent 30 days to 59 days:

Residential mortgage $60 61 691 674 40 loans

Home equity loans 445 247 159 224 102

Consumer loans 230 335 143 121 246

Commercial real estate 692 2,372 496 196 925 loans

Commercial loans 57 - - 55 44

Total nonaccrual loans delinquent 30 days to $1,484 3,015 1,489 1,270 1,357 59 days

Nonaccrual loans delinquent 60 days to 89 days:

Residential mortgage $576 1,013 218 1,048 979 loans

Home equity loans 618 960 539 689 436

Consumer loans 781 666 488 417 426

Commercial real estate 2,745 163 2,096 413 536 loans

Commercial loans 15 768 37 341 -

Total nonaccrual loans delinquent 60 days to $4,735 3,570 3,378 2,908 2,377 89 days

Nonaccrual loans delinquent 90 days or more:

Residential mortgage $14,750 15,369 10,457 12,682 11,722 loans

Home equity loans 7,845 7,060 5,816 5,635 5,966

Consumer loans 5,352 6,896 3,459 3,610 3,400

Commercial real estate 35,496 29,729 25,342 25,014 22,292 loans

Commercial loans 6,310 11,535 16,685 4,739 5,741

Total nonaccrual loans delinquent 90 days or $69,753 70,589 61,759 51,680 49,121 more

Total nonaccrual loans $106,798 115,510 85,431 68,870 65,657

Total nonaccrual loans $106,798 115,510 85,431 68,870 65,657

Loans 90 days past due 495 77 31 32 85 and still accruing

Nonperforming loans 107,293 115,587 85,462 68,902 65,742

Real estate owned, net 2,575 1,897 1,075 950 1,237

Nonperforming assets $109,868 117,484 86,537 69,852 66,979

Nonaccrual troubled $17,120 17,562 17,375 9,043 9,138 debt restructuring *

Accruing troubled debt 17,684 17,888 15,977 22,956 21,162 restructuring

Total troubled debt $34,804 35,450 33,352 31,999 30,300 restructuring



Nonperforming loans to 1.00 %1.06 %0.97 %0.78 %0.74 % total loans

Nonperforming assets to0.80 %0.85 %0.81 %0.67 %0.63 % total assets

Allowance for credit 1.30 %1.29 %1.05 %0.66 %0.60 % losses to total loans

Allowance for total loans excluding PPP 1.36 %1.36 %N/A N/A N/A loan balances

Allowance for credit losses to nonperforming130.68 %121.63 %108.70%84.09 %80.40 % loans

* Amounts included in nonperforming loans above.

Northwest Bancshares, Inc. and Subsidiaries Loans by Credit Quality Indicators (Unaudited) (dollars in thousands)

Special At September Pass SubstandardDoubtful LossLoans 30, 2020 mention** *** receivable *

Personal Banking:

Residential $3,117,442 - 25,927 - - 3,143,369 mortgage loans

Home equity 1,471,919 - 12,446 - - 1,484,365 loans

Consumer loans1,478,109 - 8,974 - - 1,487,083

Total Personal6,067,470 - 47,347 - - 6,114,817 Banking

Commercial Banking:

Commercial real estate 2,850,611 110,073359,059 - - 3,319,743 loans

Commercial 1,255,255 40,631 51,406 - - 1,347,292 loans

Total Commercial 4,105,866 150,704410,465 - - 4,667,035 Banking

Total loans $10,173,336150,704457,812 - - 10,781,852

At June 30, 2020

Personal Banking:

Residential $3,196,304 - 26,451 - - 3,222,755 mortgage loans

Home equity 1,438,339 - 12,031 - - 1,450,370 loans

Consumer loans1,508,129 - 9,990 - - 1,518,119

Total Personal6,142,772 - 48,472 - - 6,191,244 Banking

Commercial Banking:

Commercial real estate 3,034,984 72,755 199,993 1,092 - 3,308,824 loans

Commercial 1,270,279 41,458 42,692 4,290 - 1,358,719 loans

Total Commercial 4,305,263 114,213242,685 5,382 - 4,667,543 Banking

Total loans $10,448,035114,213291,157 5,382 - 10,858,787

At March 31, 2020

Personal Banking:

Residential $2,830,596 - 7,690 - - 2,838,286 mortgage loans

Home equity 1,345,052 - 8,211 - - 1,353,263 loans

Consumer loans1,174,067 - 3,988 - - 1,178,055

Total Personal5,349,715 - 19,889 - - 5,369,604 Banking

Commercial Banking:

Commercial real estate 2,537,736 73,967 143,765 - - 2,755,468 loans

Commercial 618,267 43,071 50,464 - - 711,802 loans

Total Commercial 3,156,003 117,038194,229 - - 3,467,270 Banking

Total loans $8,505,718 117,038214,118 - - 8,836,874

At December 31, 2019

Personal Banking:

Residential $2,858,582 - 9,545 - - 2,868,127 mortgage loans

Home equity 1,336,111 - 6,807 - - 1,342,918 loans

Consumer loans1,120,732 - 4,400 - - 1,125,132

Total Personal5,315,425 - 20,752 - - 5,336,177 Banking

Commercial Banking:

Commercial real estate 2,538,816 80,570 135,004 - - 2,754,390 loans

Commercial 616,983 42,380 58,744 - - 718,107 loans

Total Commercial 3,155,799 122,950193,748 - - 3,472,497 Banking

Total loans $8,471,224 122,950214,500 - - 8,808,674

At September 30, 2019

Personal Banking:

Residential $2,887,077 - 9,056 - - 2,896,133 mortgage loans

Home equity 1,320,930 - 7,243 - - 1,328,173 loans

Consumer loans1,090,030 - 4,263 - - 1,094,293

Total Personal5,298,037 - 20,562 - - 5,318,599 Banking

Commercial Banking:

Commercial real estate 2,601,025 69,380 142,253 181 - 2,812,839 loans

Commercial 639,998 37,666 42,800 115 - 720,579 loans

Total Commercial 3,241,023 107,046185,053 296 - 3,533,418 Banking

Total loans $8,539,060 107,046205,615 296 - 8,852,017

Includes $34.7 million, $37.4 million, $13.1 million, $10.3 million, and* $8.7 million of acquired loans at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively.

Includes $129.2 million, $108.2 million, $56.8 million, $53.1 million,** and $46.6 million of acquired loans at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively.

*** Includes $1.1 million of acquired loans at June 30, 2020.

Northwest Bancshares, Inc. and Subsidiaries Loan Delinquency (Unaudited) (dollars in thousands)

September 30, * June 30, * March 31, * December 31, * September 30, * 2020 2020 2020 2019 2019

(Number of loans and dollar amount of loans)

Loans delinquent 30 days to 59 days:

Residential mortgage loans 17 $736 - % 15 $629 - % 358 $32,755 1.2% 292 $23,296 0.8% 21 $1,236 - %

Home equity loans 129 4,984 0.3% 118 4,569 0.3% 190 7,061 0.5% 173 6,469 0.5% 149 4,774 0.4%

Consumer loans 1,0788,586 0.6% 629 7,199 0.5% 953 8,774 0.7% 960 9,208 0.8% 864 7,597 0.7%

Commercial real estate loans 28 5,090 0.2% 46 14,177 0.4% 58 12,895 0.5% 43 7,921 0.3% 27 5,308 0.2%

Commercial loans 19 1,797 0.1% 12 1,242 0.1% 35 7,545 1.1% 32 1,187 0.2% 20 362 0.1%

Total loans delinquent 30 days to 59 days 1,271$21,193 0.2% 820 $27,816 0.3% 1,594$69,030 0.8% 1,500$48,081 0.5% 1,081$19,2770.2%



Loans delinquent 60 days to 89 days:

Residential mortgage loans 65 $4,788 0.2% 64 $5,364 0.2% 11 $511 - % 67 $5,693 0.2% 95 $5,320 0.2%

Home equity loans 56 1,860 0.1% 59 2,326 0.2% 65 2,652 0.2% 66 2,405 0.2% 66 2,103 0.2%

Consumer loans 323 3,049 0.2% 258 2,916 0.2% 265 2,610 0.2% 395 3,302 0.3% 288 2,632 0.2%

Commercial real estate loans 14 4,212 0.1% 18 3,913 0.1% 12 2,981 0.1% 19 1,690 0.1% 15 1,893 0.1%

Commercial loans 7 357 - % 15 1,151 0.1% 10 309 - % 17 6,403 0.9% 10 589 0.1%

Total loans delinquent 60 days to 89 days 465 $14,266 0.1% 414 $15,670 0.1% 363 $9,063 0.1% 564 $19,493 0.2% 474 $12,5370.1%



Loans delinquent 90 days or more: **

Residential mortgage loans 168 $14,750 0.5% 185 $15,369 0.5% 129 $10,457 0.4% 141 $12,775 0.4% 138 $11,8160.4%

Home equity loans 193 7,845 0.5% 182 7,060 0.5% 152 5,816 0.4% 159 5,688 0.4% 157 5,966 0.4%

Consumer loans 696 5,847 0.4% 709 6,896 0.5% 445 3,459 0.3% 590 3,611 0.3% 398 3,401 0.3%

Commercial real estate loans 136 35,496 1.1% 149 29,729 0.9% 139 25,342 0.9% 129 25,014 0.9% 118 22,292 0.8%

Commercial loans 34 6,310 0.5% 47 11,535 0.8% 51 16,685 2.3% 37 4,739 0.7% 40 5,741 0.8%

Total loans delinquent 90 days or more 1,227$70,248 0.7% 1,272$70,589 0.7% 916 $61,759 0.7% 1,056$51,827 0.6% 851 $49,2160.6%



Total loans delinquent 2,963$105,7071.0% 2,506$114,0751.1% 2,873$139,8521.6% 3,120$119,4011.4% 2,406$81,0300.9%

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

Includes purchased credit deteriorated loans of $20.3 million, $18.0** million, and $298,000 at September 30, 2020, June 30, 2020, and March 31, 2020, respectively, and purchased credit impaired loans of $147,000 and $95,000 at December 31, 2019, and September 30, 2019, respectively.

Northwest Bancshares, Inc. and SubsidiariesAnalysis of Loan Portfolio by Loan Sector (Unaudited)(dollars in thousands)



Loans outstanding

The following table provides delinquency information for various loan sectorsin our portfolio that are potentially vulnerable to the COVID-19 pandemicimpacts at September 30, 2020:



At September 30-59 days 60-89 days 90 days Total Total30, 2020 delinquent * delinquent * or greater * delinquent * Current * loans * delinquent receivable

Restaurants/ $ 27 - % $ 623 - % $ 1,012 - % $ 1,662 - % $ 97,009 0.9 % $ 98,671 0.9 %bars

Hotels/ 3 - % 1,083 - % 6,751 0.1 % 7,837 0.1 % 174,687 1.6 % 182,524 1.7 %hospitality

Gyms and - - % - - % 5 - % 5 - % 5,302 - % 5,307 - %fitness

Transportation 44 - % 19 - % 2,313 - % 2,376 - % 77,371 0.7 % 79,747 0.7 %

Oil and gas 7 - % - - % 23 - % 30 - % 11,385 0.1 % 11,415 0.1 %

Residentialcare - - % - - % - - % - - % 233,248 2.2 % 233,248 2.2 %facilities

Retail 222 - % 263 - % 850 - % 1,335 - % 448,829 4.2 % 450,164 4.2 %buildings

Education/student - - % 1,427 - % 503 - % 1,930 - % 144,214 1.3 % 146,144 1.4 %housing

Construction/development:

Education/student - - % - - % - - % - - % 48,175 0.4 % 48,175 0.4 %housing

Hotels/ - - % - - % - - % - - % 25,559 0.2 % 25,559 0.2 %hospitality

Residentialcare - - % - - % - - % - - % 36,667 0.3 % 36,667 0.3 %facilities

All otherconstruction/ 2,139 - % - - % 5,476 0.1 % 7,615 0.1 % 182,201 1.7 % 189,816 1.8 %development

All other 18,751 0.2 % 10,851 0.1 % 53,315 0.5 % 82,917 0.8 % 9,191,498 85.2 % 9,274,415 86.0 %sectors

Total loans $ 21,193 0.2 % $ 14,266 0.1 % $ 70,248 0.7 % $ 105,707 1.0 % $ 10,676,145 99.0 % $ 10,781,852 100.0 %

* Percent of total loans outstanding.

Loan deferrals The following table represents loans that entered into and are currently in a deferment offered by the Company to aid customers in the COVID-19 pandemic as of September 30, 2020. Of these loan deferrals, 297 borrowers applied for and received PPP loans totaling approximately $50.8 million:

Balance as of Loans returned to Loans moved into New loans entered Balance as of June 30, 2020 full payment status,a second deferral into September 30, 2020 net of payments first deferral

Number of Outstanding NumberOutstanding Number OutstandingNumber OutstandingNumber Outstanding loans principal * of principal of principal of principal of principal * balance loans balance loans balance loans balance loans balance

Residential mortgage loans 936 $131,567 4.1 %871 $121,725 65 $9,842 46 $6,125 111 $15,967 0.5 %

Home equity loans 652 42,836 3.0 %625 40,606 27 2,230 21 1,409 48 3,639 0.2 %

Consumer loans 2,455 49,374 3.3 %2,39948,068 56 1,306 67 1,042 123 2,348 0.2 %

Commercial real estate loans1,511 967,340 29.2%1,434794,288 77 173,052 17 10,609 94 183,661 5.5 %

Commercial loans 652 120,999 8.9 %635 119,029 17 1,970 11 5,115 28 7,085 0.5 %

Total loans 6,206 $1,312,11612.1%5,964$1,123,716242 $188,400 162 $24,300 404 $212,700 **2.0 %

* Percent of total loans outstanding by the respective total amount of that type of loan.

As of September 30, 2020, $177.9 million of loan deferrals expire in Q4** 2020 and $34.8 million of loan deferrals expire in Q1 2021. In addition, of the $212,700 total loan deferrals, $153.2 million are in the hospitality industry.

Northwest Bancshares, Inc. and Subsidiaries Allowance for Credit Losses (Unaudited) (dollars in thousands)

Quarter ended

September June 30, March 31,December 31,September 30, 30, 2020 2020 2019 2019 2020

Beginning $140,586 92,897 57,941 52,859 53,107 balance

CECL adoption- - 10,792 - -

Initial allowance on loans - 8,845 - - - purchased with credit deterioration

Provision 6,818 51,750 27,637 8,223 3,302

Charge-offs residential (129) (38) (343) (222) (190) mortgage

Charge-offs (88) (173) (289) (113) (466) home equity

Charge-offs (3,356) (3,191) (3,488) (3,142) (3,078) consumer

Charge-offs commercial (532) (690) (331) (107) (389) real estate

Charge-offs (4,892) (10,349) (815) (1,143) (1,151) commercial

Recoveries 1,802 1,535 1,793 1,586 1,724

Ending $140,209 140,586 92,897 57,941 52,859 balance

Net charge-offs to average 0.27 %0.51 %0.16 %0.14 % 0.16 % loans, annualized

Nine months ended September 30,

2020 2019

Beginning balance $57,941 55,214

CECL adoption 10,792 -

Initial allowance on loans purchased with credit 8,845 - deterioration

Provision 86,205 14,436

Charge-offs residential mortgage (510) (944)

Charge-offs home equity (550) (1,008)

Charge-offs consumer (10,035) (8,665)

Charge-offs commercial real estate (1,553) (5,360)

Charge-offs commercial (16,056) (5,508)

Recoveries 5,130 4,694

Ending balance $140,209 52,859

Net charge-offs to average loans, annualized 0.32 %0.26 %

September 30, 2020

Originated loans Acquired loans Total loans

Balance Reserve Balance ReserveBalance Reserve

Residential $2,794,48910,244 348,880 1,792 3,143,369 12,036 mortgage loans

Home equity loans1,169,709 7,488 314,656 2,097 1,484,365 9,585

Consumer loans 1,242,220 16,433 244,863 3,427 1,487,083 19,860

Personal Banking 5,206,418 34,165 908,399 7,316 6,114,817 41,481 Loans

Commercial real 2,488,967 66,960 830,776 20,0203,319,743 86,980 estate loans

Commercial loans 1,147,492 8,455 199,800 3,293 1,347,292 11,748

Commercial 3,636,459 75,415 1,030,57623,3134,667,035 98,728 Banking Loans

Total Loans $8,842,877109,5801,938,97530,62910,781,852140,209

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

September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019

Avg. Avg. Avg. Avg. Avg. Average Interest yield/ Average Interest yield/ Average Interest yield/ Average Interest yield/ Average Interestyield/ balance cost (h)balance cost (h)balance cost (h)balance cost (h)balance cost (h)

Assets:

Interest-earning assets:

Residential mortgage loans $3,176,436 28,769 3.62 % $3,092,392 29,019 3.75 % $2,845,483 28,062 3.94 % $2,847,932 28,011 3.93 % $2,894,716 28,991 4.01%

Home equity loans 1,479,429 13,732 3.69 % 1,415,091 13,806 3.92 % 1,345,059 14,801 4.43 % 1,333,748 15,354 4.57 % 1,316,033 16,131 4.86%

Consumer loans 1,437,828 15,851 4.39 % 1,375,130 14,993 4.39 % 1,123,336 12,160 4.35 % 1,073,565 12,016 4.44 % 1,028,579 11,916 4.60%

Commercial real estate loans 3,306,386 36,887 4.37 % 3,156,749 34,595 4.34 % 2,747,419 31,437 4.53 % 2,741,687 32,985 4.71 % 2,796,351 34,441 4.82%

Commercial loans 1,377,223 12,603 3.58 % 1,161,228 11,269 3.84 % 712,621 8,856 4.92 % 717,438 9,841 5.37 % 710,847 9,949 5.48%

Total loans receivable (a) (b) (d) 10,777,302 107,842 3.98 % 10,200,590 103,682 4.09 % 8,773,918 95,316 4.37 % 8,714,370 98,207 4.47 % 8,746,526 101,4284.60%

Mortgage-backed securities (c) 1,004,803 4,651 1.85 % 714,657 4,038 2.26 % 668,470 4,175 2.50 % 667,910 4,237 2.54 % 641,085 4,188 2.61%

Investment securities (c) (d) 216,081 1,336 2.47 % 170,309 1,244 2.92 % 144,152 881 2.44 % 151,289 938 2.48 % 218,753 1,168 2.14%

FHLB stock, at cost 25,595 218 3.39 % 22,192 309 5.60 % 15,931 262 6.61 % 13,400 262 7.76 % 16,302 307 7.47%

Other interest-earning deposits 791,601 221 0.11 % 623,870 185 0.12 % 34,697 135 1.54 % 31,624 169 2.09 % 28,832 172 2.33%

Total interest-earning assets 12,815,382 114,268 3.55 % 11,731,618 109,458 3.75 % 9,637,168 100,769 4.21 % 9,578,593 103,813 4.30 % 9,651,498 107,2634.41%

Noninterest-earning assets (e) 1,088,273 1,858,513 960,303 869,117 916,781

Total assets $13,903,655 $13,590,131 $10,597,471 $10,447,710 $10,568,279

Liabilities and shareholders' equity:

Interest-bearing liabilities:

Savings deposits $2,015,604 648 0.13 % $1,884,202 648 0.14 % $1,611,111 727 0.18 % $1,615,996 792 0.19 % $1,658,670 788 0.19%

Interest-bearing demand deposits 2,680,591 763 0.11 % 2,428,060 812 0.13 % 1,915,871 1,307 0.27 % 1,769,623 1,570 0.35 % 1,655,952 1,711 0.41%

Money market deposit accounts 2,347,097 1,347 0.23 % 2,204,810 1,600 0.29 % 1,921,243 3,088 0.65 % 1,845,535 3,226 0.69 % 1,798,175 3,772 0.83%

Time deposits 1,782,350 5,685 1.27 % 1,761,260 6,276 1.43 % 1,528,891 6,281 1.65 % 1,607,992 7,305 1.80 % 1,618,591 7,423 1.82%

Borrowed funds (f) 420,715 717 0.68 % 371,700 296 0.32 % 240,118 709 1.19 % 177,670 444 0.99 % 243,960 1,002 1.63%

Junior subordinated debentures 128,658 720 2.19 % 127,472 837 2.60 % 121,809 1,038 3.37 % 121,796 1,136 3.65 % 121,767 1,235 3.97%

Total interest-bearing liabilities 9,375,015 9,880 0.42 % 8,777,504 10,469 0.48 % 7,339,043 13,150 0.72 % 7,138,612 14,473 0.80 % 7,097,115 15,931 0.89%

Noninterest-bearing demand deposits (g) 2,703,266 2,401,368 1,640,180 1,800,861 1,915,392

Noninterest-bearing liabilities 284,440 882,391 268,139 158,434 216,433

Total liabilities 12,362,721 12,061,263 9,247,362 9,097,907 9,228,940

Shareholders' equity 1,540,934 1,528,868 1,350,109 1,349,803 1,339,339

Total liabilities and shareholders' equity $13,903,655 $13,590,131 $10,597,471 $10,447,710 $10,568,279

Net interest income/Interest rate spread 104,388 3.13 % 98,989 3.27 % 87,619 3.48 % 89,340 3.50 % 91,332 3.52%

Net interest-earning assets/Net interest margin $3,440,367 3.26 % $2,954,114 3.38 % $2,298,125 3.66 % $2,439,981 3.73 % $2,554,383 3.79%

Ratio of interest-earning assets to interest-bearing liabilities1.37X 1.34X 1.31X 1.34X 1.36X

(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.

(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(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, collateralized borrowings and subordinated debt.

(g) Average cost of deposits were 0.29%, 0.35%, 0.53%, 0.59%, and 0.63%, respectively.

Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 3.96%, 4.06%, 4.35%, 4.46%, and 4.59%, respectively, Investment(h) securities - 2.00%, 2.36%, 2.31%, 2.34%, and 2.03%, respectively, Interest-earning assets - 3.52% 3.72%, 4.19%, 4.28%, and 4.39%, respectively. GAAP basis net interest rate spreads were 3.10%, 3.24%, 3.47%, 3.48%, and 3.50%, respectively, and GAAP basis net interest margins were 3.23%, 3.34%, 3.64%, 3.71%, and 3.77%, respectively.

Northwest Bancshares, Inc. and Subsidiaries Average Balance Sheet (Unaudited) (in thousands)

The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on interest-earning assets and average cost of interest-bearing 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.



Nine months ended September 30,

2020 2019

Avg. Avg. Average Interestyield/Average Interestyield/ balance cost balance cost (h) (h)

Assets

Interest-earning assets:

Residential mortgage$3,038,712 85,850 3.77%$2,865,091 87,572 4.08%loans

Home equity loans 1,424,580 42,340 3.97%1,300,537 48,868 5.02%

Consumer loans 1,302,282 43,004 4.41%949,303 32,844 4.60%

Commercial real 3,071,047 102,9184.40%2,720,435 99,930 4.84%estate loans

Commercial loans 1,084,739 32,727 3.96%665,867 28,724 5.69%

Loans receivable (a)9,921,360 306,8394.13%8,501,233 297,9384.69% (b) (d)

Mortgage-backed 796,739 12,865 2.15%630,279 12,433 2.63%securities (c)

Investment 176,991 3,461 2.61%224,111 3,532 2.10%securities (c) (d)

FHLB stock, at cost 21,255 789 4.96%14,840 794 7.15%

Other interest-earning 483,390 541 0.15%20,531 431 2.77%deposits

Total interest-earning 11,399,735 324,4953.80%9,390,994 315,1284.49%assets

Noninterest-earning 1,190,283 898,459 assets (e)



Total assets $12,590,018 $10,289,453



Liabilities and shareholders' equity

Interest-bearing liabilities:

Savings deposits $1,837,624 2,023 0.15%$1,668,806 2,323 0.19%

Interest-bearing 2,342,748 2,882 0.16%1,611,554 4,442 0.37%demand deposits

Money market deposit2,157,212 6,035 0.37%1,756,251 9,784 0.74%accounts

Time deposits 1,691,168 18,243 1.44%1,538,113 19,774 1.72%

Borrowed funds (f) 344,457 1,721 0.67%216,160 2,421 1.50%

Junior subordinated 125,988 2,595 2.71%119,417 3,698 4.08%debentures

Total interest-bearing 8,499,197 33,499 0.53%6,910,301 42,442 0.82%liabilities

Noninterest-bearing 2,250,864 1,847,344 demand deposits (g)

Noninterest-bearing 243,705 219,806 liabilities



Total liabilities 10,993,766 8,977,451



Shareholders' equity1,596,252 1,312,002



Total liabilities and shareholders' $12,590,018 $10,289,453 equity



Net interest income/ 290,9963.27% 272,6863.67%Interest rate spread



Net interest-earning assets/Net interest $2,900,538 3.40%$2,480,693 3.87%margin



Ratio of interest-earning assets to 1.34X 1.36X interest-bearing liabilities

(a) Average gross loans 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 were not material.

(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(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, collateralized borrowings and subordinated debt.

(g) Average cost of deposits were 0.38% and 0.58%, respectively.

Shown on a FTE basis. GAAP basis yields were: Loans - 4.11% and 4.67%, respectively; Investment securities - 2.20% and 2.00%, respectively;(h) Interest-earning assets - 3.78% and 4.47%, respectively. GAAP basis net interest rate spreads were 3.25% and 3.65%, respectively; and GAAP basis net interest margins were 3.38% and 3.86%, respectively.

View original content to download multimedia: http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-third-quarter-2020-earnings-and-quarterly-dividend-301158894.html

SOURCE Northwest Bancshares, Inc.