PR Newswire | Apr 26, 2021 09:01AM EDT

Dividend Increase

04/26 08:00 CDT

Northwest Bancshares, Inc. Announces First Quarter 2021 Earnings and Quarterly Dividend Increase WARREN, Pa., April 26, 2021

WARREN, Pa., April 26, 2021 /PRNewswire/ -- Northwest Bancshares, Inc. (the "Company") (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2021 of $40.2 million, or $0.32 per diluted share. This represents an increase of $32.3 million compared to the same quarter last year when net income was $7.9 million, or $0.07 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended March 31, 2021 were 10.61% and 1.17% compared to 2.37% and 0.30% for the same quarter last year.

The Company also announced that its Board of Directors increased the quarterly cash dividend by 5.3% to $0.20 per share payable on May 17, 2021 to shareholders of record as of May 6, 2021. This is the 106th 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, 2021, this represents an annualized dividend yield of approximately 5.5%.

In making this announcement, Ronald J. Seiffert, Chairman, President and CEO, noted, "We are extremely pleased with the current quarter results 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 prior year and prior quarter as we continue to see economic forecasts improve. From a credit quality perspective, delinquencies continue to be well maintained while payment deferrals on loans declined to just $53.8 million, or 0.5% of the loan portfolio, at March 31, 2021 as compared to $129.9 million at December 31, 2020. Despite the increase in nonperforming loans, or loans for which the accrual of interest has ceased, by $120.7 million during the quarter, classified loans declined from the December quarter by $21.6 million, or 4.4%, indicating that these potential problem loans had already previously been identified and an adequate reserve has already been allocated."

Mr. Seiffert continued, "During the first quarter, we also announced the divestiture of our insurance business to a very qualified and compassionate buyer in USI Insurance Services. As we assessed this business line for the past several years, it became clear that we were not going to be able to scale this business line in a meaningful way and that our resources and capital are better spent on our core banking businesses. The sale is expected to close during the second quarter."

Net interest income increased by $13.2 million, or 15.2%, to $100.5 million for the quarter ended March 31, 2021, from $87.2 million for the quarter ended March 31, 2020, largely due to a $7.3 million, or 7.7%, increase in interest income on loans receivable. This increase in interest income on loans was mainly due to an increase of $1.633 billion, or 18.6%, 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 $5.9 million, or 51.6%, in interest expense on deposits 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 0.33% for the quarter ended March 31, 2021 from 0.72% for the quarter ended March 31, 2020. Despite the overall increase in net interest income, net interest margin decreased to 3.18% for the quarter ended March 31, 2021 from 3.66% for the same quarter last year as interest earning asset yields decreased to 3.42% for the quarter ended March 31, 2021 from 4.21% for the quarter ended March 31, 2020. Contributing to the overall decline in average asset yield was the increase in average cash balances of $766.4 million, earning just 0.09%, due to deposit growth associated with Payroll Protection Program ("PPP") loan funds and consumer stimulus checks, as well as the overall decrease in market interest rates beginning with the decrease in the targeted federal funds rate of 1.25% by the Federal Reserve in March of 2020.

The provision for credit losses decreased by $33.3 million due to a current period credit of $5.6 million for the quarter ended March 31, 2021, compared to a provision expense of $27.6 million for the quarter ended March 31, 2020 because of a release in the allowance for credit losses due to continued improvements in economic forecasts. Total classified loans increased by $253.6 million to $467.7 million, or 4.51% of total loans, at March 31, 2021 from $214.1 million, or 2.42% of total loans, as of March 31, 2020. This increase was primarily due to the downgrade of commercial loans in certain industries impacted by COVID-19.

Noninterest income increased by $4.0 million, or 14.2%, to $32.0 million for the quarter ended March 31, 2021, from $28.0 million for the quarter ended March 31, 2020. This increase was primarily due to the increase in mortgage banking income of $4.8 million to $6.0 million for the quarter ended March 31, 2021 from $1.2 million for the quarter ended March 31, 2020. 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, trust and other financial services income increased $1.5 million, or 29.7%, as a result of additional fee income from the MutualBank acquisition. Slightly offsetting these increases was a decrease in service charges and fees of $2.7 million, or 18.0%, due to the impact of the Durbin amendment on our interchange fees which came into effect in the second half of 2020.

Noninterest expense increased by $7.6 million, or 9.6%, to $86.2 million for the quarter ended March 31, 2021, from $78.6 million for the quarter ended March 31, 2020. This increase resulted primarily from an increase of $4.5 million, or 10.5%, in compensation and employee benefits due primarily to the addition of MutualBank employees during the second quarter of 2020. Also contributing to this increase was an increase of $2.3 million, or 20.8%, in processing expenses as we continue to invest in technology and infrastructure and as activity-driven utilization fees for online and mobile banking has increased. Professional services expense increased $1.8 million, or 62.9%, due to the utilization of third-party experts to recruit talent and assist with our digital strategy rollout. Premises and occupancy costs increased $1.3 million, or 18.0%, over the prior year due primarily to additional snow removal costs. Lastly, Federal Deposit Insurance Corporation ("FDIC") insurance premiums increased $1.3 million due to assessment credits received in the previous year.

The provision for income taxes increased by $10.6 million to $11.6 million for the quarter ended March 31, 2021, from $1.0 million for the quarter ended March 31, 2020 due to higher income before income taxes.

Northwest Bancshares, Inc. is the holding company of Northwest Bank, which is headquartered in Warren, Pennsylvania. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of March 31, 2021, 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, December 31,March 31, 2021 2020 2020

Assets

Cash and cash equivalents $979,290 736,277 276,454

Marketable securities available-for-sale (amortized cost of $1,430,352, 1,430,131 1,398,941 765,579 $1,375,685 and $749,703, respectively)

Marketable securities held-to-maturity (fair value of $593,232, $179,666 and 604,284 178,887 17,208 $17,968, respectively)

Total cash and cash equivalents and 3,013,705 2,314,105 1,059,241 marketable securities



Residential mortgage loans held-for-sale46,270 58,786 6,426

Residential mortgage loans 2,925,408 3,009,335 2,831,860

Home equity loans 1,407,524 1,467,736 1,353,263

Consumer loans 1,554,355 1,507,993 1,178,055

Commercial real estate loans 3,289,436 3,345,889 2,755,468

Commercial loans 1,145,047 1,191,110 711,802

Total loans receivable 10,368,040 10,580,849 8,836,874

Allowance for credit losses (123,997) (134,427) (92,897)

Loans receivable, net 10,244,043 10,446,422 8,743,977



FHLB stock, at cost 21,861 21,748 13,131

Accrued interest receivable 28,732 35,554 25,531

Real estate owned, net 1,738 2,232 1,075

Premises and equipment, net 158,784 161,538 147,427

Bank-owned life insurance 252,599 253,951 190,127

Goodwill 382,356 382,279 346,103

Other intangible assets, net 18,342 19,936 21,425

Other assets 148,196 168,503 133,159

Total assets $14,270,356 13,806,268 10,681,196

Liabilities and shareholders' equity

Liabilities

Noninterest-bearing demand deposits $3,000,019 2,716,224 1,736,622

Interest-bearing demand deposits 2,826,461 2,755,950 1,975,830

Money market deposit accounts 2,521,881 2,437,539 1,946,113

Savings deposits 2,229,214 2,047,424 1,640,414

Time deposits 1,535,519 1,642,096 1,493,756

Total deposits 12,113,094 11,599,233 8,792,735



Borrowed funds 253,617 283,044 191,599

Junior subordinated debentures 128,859 128,794 121,813

Advances by borrowers for taxes and 44,024 45,230 47,154 insurance

Accrued interest payable 659 2,054 834

Other liabilities 189,109 209,210 185,269

Total liabilities 12,729,362 12,267,565 9,339,404

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, 127,222,648, 127,019,452, and 1,272 1,270 1,069 106,933,483 shares issued and outstanding, respectively

Additional paid-in capital 1,018,822 1,015,502 808,250

Retained earnings 571,612 555,480 561,380

Accumulated other comprehensive loss (50,712) (33,549) (28,907)

Total shareholders' equity 1,540,994 1,538,703 1,341,792

Total liabilities and shareholders' $14,270,356 13,806,268 10,681,196 equity



Equity to assets 10.80 %11.14 %12.56 %

Tangible common equity to assets* 8.22 %8.48 %9.45 %

Book value per share $12.11 12.11 12.55

Tangible book value per share* $8.96 8.95 9.11

Closing market price per share $14.45 12.74 11.57

Full time equivalent employees 2,443 2,421 2,223

Number of banking offices 170 170 178

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

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



Quarter ended

March 31, December 31, September 30,June 30, March 31, 2021 2020 2020 2020 2020

Interest income:

Loans receivable $ 102,318 105,681 107,241 103,012 94,973

Mortgage-backed securities 4,200 4,551 4,652 4,038 4,175

Taxable investment securities 634 471 427 439 648

Tax-free investment securities 575 656 655 564 185

FHLB stock dividends 116 192 218 309 262

Interest-earning deposits 183 178 221 185 135

Total interest income 108,026 111,729 113,414 108,547 100,378

Interest expense:

Deposits 5,514 6,714 8,443 9,336 11,403

Borrowed funds 2,054 2,127 1,437 1,133 1,747

Total interest expense 7,568 8,841 9,880 10,469 13,150

Net interest income 100,458 102,888 103,534 98,078 87,228

Provision for credit losses (5,620) (2,230) 6,818 51,750 27,637

Net interest income after provision for credit 106,078 105,118 96,716 46,328 59,591 losses

Noninterest income:

Gain/(loss) on sale of investments (21) 75 (12) (8) 181

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

Service charges and fees 12,394 13,074 14,354 13,069 15,116

Trust and other financial services income 6,484 5,722 5,376 4,823 5,001

Insurance commission income 2,546 2,034 2,331 2,395 2,372

Gain/(loss) on real estate owned, net (42) 114 (32) (97) (91)

Income from bank-owned life insurance 1,736 1,330 1,576 1,248 1,036

Mortgage banking income 6,020 7,120 11,055 12,022 1,194

Other operating income 2,836 2,654 2,022 2,044 1,865

Total noninterest income 31,953 32,123 36,670 35,496 27,976

Noninterest expense:

Compensation and employee benefits 47,239 48,209 47,371 40,049 42,746

Premises and occupancy costs 8,814 7,614 8,342 7,195 7,471

Office operations 3,165 4,009 4,626 3,711 3,382

Collections expense 616 893 1,264 644 474

Processing expenses 13,456 12,186 15,042 11,680 11,142

Marketing expenses 1,980 1,994 2,147 2,047 1,507

Federal deposit insurance premiums 1,307 1,651 1,498 1,618 -

Professional services 4,582 3,599 3,246 2,825 2,812

Amortization of intangible assets 1,594 1,664 1,781 1,760 1,651

Real estate owned expense 75 64 111 89 95

Merger/asset disposition expense 9 7,238 1,414 9,679 2,458

Other expenses 3,354 3,728 27 7,866 4,873

Total noninterest expense 86,191 92,849 86,869 89,163 78,611

Income/(loss) before income taxes 51,840 44,392 46,517 (7,339) 8,956

Income tax expense/(benefit) 11,603 9,327 8,467 (1,139) 1,017

Net income/(loss) $ 40,237 35,065 38,050 (6,200) 7,939



Basic earnings/(loss) per share $ 0.32 0.28 0.30 (0.05) 0.08

Diluted earnings/(loss) per share $ 0.32 0.28 0.30 (0.05) 0.07



Weighted average common shares outstanding - basic 126,182,409 126,713,429 126,855,810 121,480,563 105,882,553

Weighted average common shares outstanding - 126,700,024 126,728,602 126,855,810 121,480,563 106,148,247 diluted



Annualized return on average equity 10.61 %9.00 %9.82 %(1.63) %2.37 %

Annualized return on average assets 1.17 %1.01 %1.09 %(0.18) %0.30 %

Annualized return on tangible common equity ** 14.31 %12.27 %13.28 %(2.22) %3.28 %



Efficiency ratio * 63.88 %62.18 %59.68 %58.19 %64.67 %

Annualized noninterest expense to average assets * 2.45 %2.42 %2.39 %2.30 %2.83 %

* Excludes merger/asset disposition expenses and amortization of intangibleassets (non-GAAP).

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

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



March 31, December 31,September 30,June 30, March 31, 2021 2020 2020 2020 2020

Nonaccrual loans current:

Residential $164 21 1,128 413 285 mortgage loans

Home equity 268 154 366 481 592 loans

Consumer loans225 207 234 214 77

Commercial real estate 146,304 20,317 22,610 30,677 14,337 loans

Commercial 6,361 16,027 6,488 6,551 3,514 loans

Total nonaccrual $153,322 36,726 30,826 38,336 18,805 loans current

Nonaccrual loans delinquent 30 days to 59 days:

Residential $1,261 647 60 61 691 mortgage loans

Home equity 340 338 445 247 159 loans

Consumer loans254 301 230 335 143

Commercial real estate 965 1,416 692 2,372 496 loans

Commercial 1,538 87 57 - - loans

Total nonaccrual loans $4,358 2,789 1,484 3,015 1,489 delinquent 30 days to 59 days

Nonaccrual loans delinquent 60 days to 89 days:

Residential $813 767 576 1,013 218 mortgage loans

Home equity 417 190 618 960 539 loans

Consumer loans649 583 781 666 488

Commercial real estate 1,877 714 2,745 163 2,096 loans

Commercial 7,919 48 15 768 37 loans

Total nonaccrual loans $11,675 2,302 4,735 3,570 3,378 delinquent 60 days to 89 days

Nonaccrual loans delinquent 90 days or more:

Residential $9,333 14,489 14,750 15,369 10,457 mortgage loans

Home equity 7,044 8,441 7,845 7,060 5,816 loans

Consumer loans3,625 5,473 5,352 6,896 3,459

Commercial real estate 29,737 25,287 35,496 29,729 25,342 loans

Commercial 4,860 7,325 6,310 11,535 16,685 loans

Total nonaccrual loans $54,599 61,015 69,753 70,589 61,759 delinquent 90 days or more

Total nonaccrual $223,954 102,832 106,798 115,510 85,431 loans

Total nonaccrual $223,954 102,832 106,798 115,510 85,431 loans

Loans 90 days past due and 197 585 495 77 31 still accruing

Nonperforming 224,151 103,417 107,293 115,587 85,462 loans

Real estate 1,738 2,232 2,575 1,897 1,075 owned, net

Nonperforming $225,889 105,649 109,868 117,484 86,537 assets

Nonaccrual troubled debt $7,390 10,704 17,120 17,562 17,375 restructuring *

Accruing troubled debt 20,120 21,431 17,684 17,888 15,977 restructuring

Total troubled debt $27,510 32,135 34,804 35,450 33,352 restructuring



Nonperforming loans to total2.16 %0.98 %1.00 %1.06 %0.97 % loans

Nonperforming assets to 1.58 %0.77 %0.80 %0.85 %0.81 % total assets

Allowance for credit losses 1.20 %1.27 %1.30 %1.29 %1.05 % to total loans

Allowance for total loans 1.24 %1.32 %1.36 %1.36 %N/A excluding PPP loan balances

Allowance for credit losses to 55.32 %129.99 %130.68 %121.63 %108.70% nonperforming loans

* Amounts included in nonperforming loans above.

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



At March 31, Pass Special Substandard **Doubtful ***LossLoans 2021 mention * receivable

Personal Banking:

Residential $2,950,103 - 21,575 - - 2,971,678 mortgage loans

Home equity 1,396,757 - 10,767 - - 1,407,524 loans

Consumer loans1,547,502 - 6,853 - - 1,554,355

Total Personal5,894,362 - 39,195 - - 5,933,557 Banking

Commercial Banking:

Commercial real estate 2,801,082 120,345 368,009 - - 3,289,436 loans

Commercial 1,061,884 22,623 60,540 - - 1,145,047 loans

Total Commercial 3,862,966 142,968 428,549 - - 4,434,483 Banking

Total loans $9,757,328 142,968 467,744 - - 10,368,040

At December 31, 2020

Personal Banking:

Residential $3,042,544 - 25,577 - - 3,068,121 mortgage loans

Home equity 1,455,474 - 12,262 - - 1,467,736 loans

Consumer loans1,499,004 - 8,989 - - 1,507,993

Total Personal5,997,022 - 46,828 - - 6,043,850 Banking

Commercial Banking:

Commercial real estate 2,852,705 108,021 385,163 - - 3,345,889 loans

Commercial 1,092,498 41,278 57,334 - - 1,191,110 loans

Total Commercial 3,945,203 149,299 442,497 - - 4,536,999 Banking

Total loans $9,942,225 149,299 489,325 - - 10,580,849

At September 30, 2020

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 2,850,611 110,073 359,059 - - 3,319,743 loans

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

Total Commercial 4,105,866 150,704 410,465 - - 4,667,035 Banking

Total loans $10,173,336150,704 457,812 - - 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 4,305,263 114,213 242,685 5,382 - 4,667,543 Banking

Total loans $10,448,035114,213 291,157 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 3,156,003 117,038 194,229 - - 3,467,270 Banking

Total loans $8,505,718 117,038 214,118 - - 8,836,874

Includes $26.4 million, $31.3 million, $34.7 million, $37.4 million, and* $13.1 million of acquired loans at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively.

Includes $143.2 million, $153.2 million, $129.2 million, $108.2 million,** and $56.8 million of acquired loans at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively.

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

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



March 31, * December 31, * September 30, * June 30, * March 31, * 2021 2020 2020 2020 2020

(Number of loans and dollar amount of loans)

Loans delinquent 30 days to 59 days:

Residential mortgage loans 248 $22,236 0.7% 315 $28,797 0.9% 17 $736 - % 15 $629 - % 358 $32,755 1.2%

Home equity loans 84 3,334 0.2% 138 4,763 0.3% 129 4,984 0.3% 118 4,569 0.3% 190 7,061 0.5%

Consumer loans 535 5,732 0.4% 1,27910,574 0.7% 1,0788,586 0.6% 629 7,199 0.5% 953 8,774 0.7%

Commercial real estate loans 33 12,240 0.4% 43 10,923 0.3% 28 5,090 0.2% 46 14,177 0.4% 58 12,895 0.5%

Commercial loans 16 3,032 0.3% 37 6,405 0.5% 19 1,797 0.1% 12 1,242 0.1% 35 7,545 1.1%

Total loans delinquent 30 days to 59 days916 $46,574 0.4% 1,812$61,462 0.6% 1,271$21,193 0.2% 820 $27,816 0.3% 1,594$69,030 0.8%



Loans delinquent 60 days to 89 days:

Residential mortgage loans 26 $2,062 0.1% 84 $5,083 0.2% 65 $4,788 0.2% 64 $5,364 0.2% 11 $511 - %

Home equity loans 31 953 0.1% 47 1,656 0.1% 56 1,860 0.1% 59 2,326 0.2% 65 2,652 0.2%

Consumer loans 169 1,868 0.1% 322 2,742 0.2% 323 3,049 0.2% 258 2,916 0.2% 265 2,610 0.2%

Commercial real estate loans 14 7,609 0.2% 11 1,615 - % 14 4,212 0.1% 18 3,913 0.1% 12 2,981 0.1%

Commercial loans 12 8,979 0.8% 10 864 0.1% 7 357 - % 15 1,151 0.1% 10 309 - %

Total loans delinquent 60 days to 89 days252 $21,471 0.2% 474 $11,960 0.1% 465 $14,266 0.1% 414 $15,670 0.1% 363 $9,063 0.1%



Loans delinquent 90 days or more: **

Residential mortgage loans 121 $9,333 0.3% 168 $14,489 0.5% 168 $14,750 0.5% 185 $15,369 0.5% 129 $10,457 0.4%

Home equity loans 176 7,044 0.5% 207 8,441 0.6% 193 7,845 0.5% 182 7,060 0.5% 152 5,816 0.4%

Consumer loans 454 3,822 0.2% 720 6,058 0.4% 696 5,847 0.4% 709 6,896 0.5% 445 3,459 0.3%

Commercial real estate loans 113 29,737 0.9% 119 25,287 0.8% 136 35,496 1.1% 149 29,729 0.9% 139 25,342 0.9%

Commercial loans 31 4,860 0.4% 37 7,325 0.6% 34 6,310 0.5% 47 11,535 0.8% 51 16,685 0.2%

Total loans delinquent 90 days or more 895 $54,796 0.5% 1,251$61,600 0.6% 1,227$70,248 0.7% 1,272$70,589 0.7% 916 $61,759 0.7%



Total loans delinquent 2,063$122,8411.2% 3,537$135,0221.3% 2,963$105,7071.0% 2,506$114,0751.1% 2,873$139,8521.6%

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

Includes purchased credit deteriorated loans of $12.7 million, $6.6 million,** $20.3 million, $18.0 million, and $298,000 at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively.

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



Loans outstanding The following table provides delinquency information for various loan sectors in our portfolio that are potentially vulnerable to the COVID-19 pandemic impacts at March 31, 2021:



90 days Total At March 31, 30-59 days 60-89 days Total 2021 * * or greater * * Current * loans * delinquent delinquent delinquent delinquent receivable

Restaurants/ $ 310 - %$355 - %$ 759 - % $ 1,424 - % $ 103,097 1.0 %$ 104,521 1.0 %bars

Hotels/ 4,285 - %367 - %7,963 0.1% 12,615 0.1% 166,694 1.6 %179,309 1.7 %hospitality

Gyms and - - %- - %- - % - - % 4,590 - %4,590 - %fitness

Transportation 275 - %14 - %296 - % 585 - % 70,994 0.7 %71,579 0.7 %

Oil and gas - - %- - %- - % - - % 9,200 0.1 %9,200 0.1 %

Residential 1,250 - %- - %- - % 1,250 - % 246,561 2.4 %247,811 2.4 %care facilities

Retail 1,692 - %- - %938 - % 2,630 - % 445,102 4.3 %447,732 4.3 %buildings

Education/ - - %1,389 - %441 - % 1,830 - % 138,536 1.3 %140,366 1.4 %student housing

Construction/ development:

Education/ - - %- - %- - % - - % 53,903 0.5 %53,903 0.5 %student housing

Hotels/ - - %- - %- - % - - % 25,639 0.2 %25,639 0.2 %hospitality

Residential 3,450 - %- - %- - % 3,450 - % 30,144 0.3 %33,594 0.3 %care facilities

All other construction/ 319 - %804 - %4,193 - % 5,316 0.1% 178,109 1.7 %183,425 1.8 %development

All other 34,993 0.3%18,542 0.2 %40,206 0.4% 93,741 0.9% 8,772,630 84.6%8,866,371 85.5 %sectors

Total loans $ 46,5740.4%$21,471 0.2 %$ 54,796 0.5% $ 122,841 1.2% $ 10,245,19998.8%$ 10,368,040 100.0%



* 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 March 31, 2021.



Balance as of Loans returned to full New loans entered into Balance as of payment status, net of December 31, 2020 payments a deferral March 31, 2021

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

Residential mortgage loans 43 $6,442 0.2% 42 $6,119 29 $4,484 30 $ 4,807 0.2 %

Home equity loans 41 2,615 0.2% 40 2,560 21 1,096 22 1,151 0.1 %

Consumer loans 83 1,299 0.1% 83 1,299 21 546 21 546 - %

Commercial real estate loans 34 118,212 3.5% 29 80,666 20 6,068 25 43,614 1.3 %

Commercial loans 22 1,332 0.1% 21 1,301 59 3,633 60 3,664 0.3 %

Total loans 223 $129,900 1.2% 215 $91,945 150 $15,827 158 $ 53,782 **0.5 %



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

** As of March 31, 2021, $53.6 million of loan deferrals expire in Q2 2021 and $150,000 of loan deferrals expire in Q3 2021. Of the $53.8 total loan deferrals, $37.1 million are in the hospitality industry.

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



Quarter ended

March 31, December 31,September 30,June 30, March 31, 2021 2020 2020 2020 2020

Beginning balance $134,427 140,209 140,586 92,897 57,941

CECL adoption - - - - 10,792

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

Provision (5,620) (2,230) 6,818 51,750 27,637

Charge-offs (855) (407) (129) (38) (343) residential mortgage

Charge-offs home (228) (58) (88) (173) (289) equity

Charge-offs consumer (2,603) (2,623) (3,356) (3,191) (3,488)

Charge-offs commercial(4,626) (2,770) (532) (690) (331) real estate

Charge-offs commercial(54) (156) (4,892) (10,349) (815)

Recoveries 3,556 2,462 1,802 1,535 1,793

Ending balance $123,997 134,427 140,209 140,586 92,897

Net charge-offs to average loans, 0.19 %0.13 %0.27 %0.51 %0.16 %annualized

March 31, 2021

Originated loans Acquired loans Total loans

Balance ReserveBalance ReserveBalance Reserve

Residential mortgage$2,693,0755,117 278,603 744 2,971,678 5,861 loans

Home equity loans 1,138,718 3,984 268,806 1,257 1,407,524 5,241

Consumer loans 1,351,401 15,026202,954 2,425 1,554,355 17,451

Personal Banking 5,183,194 24,127750,363 4,426 5,933,557 28,553 Loans

Commercial real 2,568,567 60,874720,869 16,0853,289,436 76,959 estate loans

Commercial loans 1,011,722 10,571133,325 7,914 1,145,047 18,485

Commercial Banking 3,580,289 71,445854,194 23,9994,434,483 95,444 Loans

Total Loans $8,763,48395,5721,604,55728,42510,368,040123,997

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, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020

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

Assets:

Interest-earning assets:

Residential mortgage loans $3,007,439 26,366 3.51%$3,089,916 27,503 3.56%$3,176,436 28,769 3.62%$3,092,392 29,019 3.75%$2,845,483 28,062 3.94%

Home equity loans 1,432,009 12,815 3.63%1,472,527 13,535 3.66%1,479,429 13,732 3.69%1,415,091 13,806 3.92%1,345,059 14,801 4.43%

Consumer loans 1,463,284 14,566 4.04%1,444,860 15,874 4.37%1,437,828 15,851 4.39%1,375,130 14,993 4.39%1,123,336 12,160 4.35%

Commercial real estate loans 3,313,892 38,471 4.64%3,317,418 37,965 4.48%3,306,386 36,887 4.37%3,156,749 34,595 4.34%2,747,419 31,437 4.53%

Commercial loans 1,189,812 10,566 3.55%1,325,047 11,414 3.37%1,377,223 12,603 3.58%1,161,228 11,269 3.84%712,621 8,856 4.92%

Total loans receivable (a) (b)10,406,436 102,784 4.01%10,649,768 106,291 3.97%10,777,302 107,842 3.98%10,200,590 103,682 4.09%8,773,918 95,316 4.37% (d)

Mortgage-backed securities (c)1,324,558 4,200 1.27%1,166,739 4,551 1.56%1,004,803 4,651 1.85%714,657 4,038 2.26%668,470 4,175 2.50%

Investment securities (c) (d) 331,358 1,381 1.67%252,898 1,380 2.18%216,081 1,336 2.47%170,309 1,244 2.92%144,152 881 2.44%

FHLB stock, at cost 21,811 116 2.17%23,346 192 3.27%25,595 218 3.39%22,192 309 5.60%15,931 262 6.61%

Other interest-earning 801,119 183 0.09%632,494 178 0.11%791,601 221 0.11%623,870 185 0.12%34,697 135 1.54%deposits

Total interest-earning assets 12,885,282 108,664 3.42%12,725,245 112,592 3.52%12,815,382 114,268 3.55%11,731,618 109,458 3.75%9,637,168 100,769 4.21%

Noninterest-earning assets (e)1,102,477 1,066,609 1,088,273 1,858,513 960,303

Total assets $13,987,759 $13,791,854 $13,903,655 $13,590,131 $10,597,471

Liabilities and shareholders' equity:

Interest-bearing liabilities:

Savings deposits $2,118,030 625 0.12%$2,028,155 617 0.12%$2,015,604 648 0.13%$1,884,202 648 0.14%$1,611,111 727 0.18%

Interest-bearing demand 2,783,429 429 0.06%2,699,515 476 0.07%2,680,591 763 0.11%2,428,060 812 0.13%1,915,871 1,307 0.27%deposits

Money market deposit accounts 2,497,495 657 0.11%2,426,513 960 0.16%2,347,097 1,347 0.23%2,204,810 1,600 0.29%1,921,243 3,088 0.65%

Time deposits 1,583,525 3,803 0.97%1,676,094 4,660 1.11%1,782,350 5,685 1.27%1,761,260 6,276 1.43%1,528,891 6,281 1.65%

Borrowed funds (f) 267,163 1,412 2.14%352,392 1,469 1.66%420,715 717 0.68%371,700 296 0.32%240,118 709 1.19%

Junior subordinated debentures128,817 642 1.99%128,752 659 2.00%128,658 720 2.19%127,472 837 2.60%121,809 1,038 3.37%

Total interest-bearing 9,378,459 7,568 0.33%9,311,421 8,841 0.38%9,375,015 9,880 0.42%8,777,504 10,469 0.48%7,339,043 13,150 0.72%liabilities

Noninterest-bearing demand 2,805,206 2,675,986 2,703,266 2,401,368 1,640,180 deposits (g)

Noninterest-bearing 265,667 253,966 284,440 882,391 268,139 liabilities

Total liabilities 12,449,332 12,241,373 12,362,721 12,061,263 9,247,362

Shareholders' equity 1,538,427 1,550,481 1,540,934 1,528,868 1,350,109

Total liabilities and $13,987,759 $13,791,854 $13,903,655 $13,590,131 $10,597,471 shareholders' equity

Net interest income/Interest 101,096 3.09% 103,751 3.14% 104,388 3.13% 98,989 3.27% 87,619 3.48%rate spread

Net interest-earning assets/ $3,506,823 3.18%$3,413,824 3.26%$3,440,367 3.26%$2,954,114 3.38%$2,298,125 3.66%Net interest margin

Ratio of interest-earning assets to interest-bearing 1.37X 1.37X 1.37X 1.34X 1.31X liabilities

(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 0.19%, 0.23%, 0.29%, 0.35%, and 0.53%, respectively.

Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 3.99%, 3.94%, 3.96%, 4.06%, and 4.35%, respectively, Investment(h) securities - 1.46%, 1.78%, 2.00%, 2.36%, and 2.31%, respectively, Interest-earning assets - 3.40%, 3.48%, 3.52%, 3.72%, and 4.19%, respectively. GAAP basis net interest rate spreads were 3.07%, 3.11%, 3.10%, 3.24%, and 3.47%, respectively, and GAAP basis net interest margins were 3.16%, 3.23%, 3.23%, 3.34%, and 3.64%, respectively.

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