Earnings release
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Northwest Bancshares, Inc. Announces Record Second Quarter 2026 GAAP Net Income Of $54 Million, Or $0.36 Per Diluted Share Adjusted diluted EPS (non-GAAP) of $0.37 per share Net interest margin continues to expand to 3.75% 5.3% annualized loan growth from prior quarter Credit quality remained strong with annualized net charge-offs of 0.15% and nonperforming assets of 0.69% COLUMBUS, Ohio, July 27, 2026 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (Nasdaq: NWBI) announced record net income for the quarter ended June 30, 2026 of $54 million, or $0.36 per diluted share. This represents an increase of $20 million compared to the same quarter last year, when net income was $34 million, or $0.26 per diluted share, and an increase of $3 million compared to the prior quarter, when net income was $51 million, or $0.34 per share. The annualized returns on average shareholders' equity and average assets for the quarter ended June 30, 2026 were 11.20% and 1.27% compared to 8.26% and 0.93% for the same quarter last year and 10.86% and 1.22% for the prior quarter. Adjusted net income (non-GAAP) for the quarter ended June 30, 2026 was $54 million, or $0.37, per diluted share, which increased by $3 million from $51 million, or $0.35, per diluted share, in the prior quarter. This increase was primarily driven by an increase in net interest income of $4 million and an increase in noninterest income of $2 million which were partially offset by an increase in provision for credit losses expense of $2 million. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended June 30, 2026 were 11.26% and 1.28% compared to 10.95% and 1.23% for the prior quarter. The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on August 18, 2026 to shareholders of record as of August 6, 2026. This is the 127th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of June 30, 2026, this represents an annualized dividend yield of approximately 5.3%. Louis J. Torchio, President and CEO, Northwest Bancshares commented, "I am pleased to report a strong second quarter performance, with Northwest delivering another quarter of record net income, more than 59% year-over-year growth, supported by a balanced and consistent performance across the whole bank. We drove 32% year-over-year average loan growth in our C&I business, with disciplined growth in our national specialty business verticals, and benefited from the strength of our retail deposit franchise, achieving our fourth consecutive quarter of lower deposit costs, one of the best-in- class among our peers. We produced these results while continuing to invest in talent, technology, and new financial centers, and maintaining expense management discipline, driving another quarter of improved performance with our efficiency ratio at 57.6% and our adjusted efficiency ratio at 56.2% for the quarter. Building on our strong first half performance, and our team already making an impact in the Columbus market, attracting new talent, customers, and deposits, we continue to focus on organic growth initiatives, further optimizing our financial performance, expanding our financial center network, and serving our core customers and communities." JULY 27, 2026
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Balance Sheet Highlights Dollars in thousands Change 2Q26 vs. 2Q26 1Q26 2Q25 1Q26 2Q25 Average loans receivable $ 13,094,235 13,083,837 11,248,954 0.1 % 16.4 % Average investments 2,531,603 2,466,992 2,056,476 2.6 % 23.1 % Average deposits 14,133,825 14,046,735 12,154,001 0.6 % 16.3 % Average borrowed funds 379,262 404,547 208,342 (6.3) % 82.0 % Average loans receivable increased $1.8 billion from the quarter ended June 30, 2025, primarily driven by the Penns Woods Bancorp, Inc. ("Penns Woods") acquisition. Compared to the quarter ended March 31, 2026, average loans receivable increased $10 million driven by growth in our commercial and industrial and consumer loan portfolios. Average investments grew $475 million from the quarter ended June 30, 2025 and $65 million from the quarter ended March 31, 2026. The growth in average investments was primarily due to the Penns Woods acquisition and a targeted increase in the overall securities portfolio. Average deposits grew $2.0 billion from the quarter ended June 30, 2025 primarily driven by an increase in interest- bearing account balances primarily due to the addition of the Penns Woods deposit accounts. Average deposits grew $87 million from the quarter ended March 31, 2026 primarily driven by increase in savings and money market account balances partly due to customers shifting funds to these products as their time deposits matured. Average borrowings increased $171 million compared to the quarter end June 30, 2025 due to the acquisition of long term borrowings from Penns Woods. Average borrowings decreased $25 million compared to the quarter ended March 31, 2026. The decrease in average borrowings is attributable to the reduction of short term borrowings needs primarily due to growth in average deposits exceeding average loan and securities growth. Income Statement Highlights Dollars in thousands Change 2Q26 vs. 2Q26 1Q26 2Q25 1Q26 2Q25 Interest income $ 205,140 201,550 171,570 1.8 % 19.6 % Interest expense 58,202 59,068 52,126 (1.5) % 11.7 % Net interest income $ 146,938 142,482 119,444 3.1 % 23.0 % Net interest margin FTE 3.75 % 3.70 % 3.56 % Compared to the quarter ended June 30, 2025, net interest income increased $27 million and net interest margin increased to 3.75% from 3.56% for the quarter ended June 30, 2025. This increase in net interest income resulted primarily from: A $34 million increase in interest income that was the result of higher average yields coupled with an increase in average earning assets. The increase in average earnings assets was driven by the Penns Woods acquisition during the third quarter 2025. The average yield on loans increased to 5.61% for the quarter ended June 30, 2026 from 5.55% for the quarter ended June 30, 2025. The increase in yield was driven by loan mix shift towards higher yielding commercial loans, partially offset by the impact of fourth quarter 2025 rate cuts. A $6 million increase in interest expense is the result of an increase in the average balance of interest-bearing liabilities partially offset by a decline in the cost of deposits. The cost of interest-bearing liabilities decreased to 2.00% for the quarter ended June 30, 2026 from 2.09% for the quarter ended June 30, 2025. Compared to the quarter ended March 31, 2026, net interest income increased $4 million and net interest margin increased to 3.75% for the quarter ended June 30, 2026 from 3.70%. This increase in net interest income resulted from the following: A $4 million increase in interest income driven by growth in the average interest earning balances and an increase on investments yields compared to the prior quarter which was partially offset by a decrease in loan yields. The average yield on loans decreased 1 bps to 5.61% and average investment yields increased to 3.27% from 3.17% for the quarter ended March 31, 2026. The decrease in loan yields was driven by a decline in the accretion of loan fair value marks, based on timing of loan payoffs, coupled with a change in portfolio mix.
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A $1 million decrease in interest expense driven by lower interest expense on deposits. Average cost of interest- bearing deposits declined compared to the prior quarter to 1.83% from 1.89% for the quarter ended March 31, 2026 while average cost of borrowings increased to 3.96% from 3.88% for the quarter ended March 31, 2026. Dollars in thousands Change 2Q26 vs. 2Q26 1Q26 2Q25 1Q26 2Q25 Provision for credit losses - loans $ 4,280 4,954 11,456 (13.6) % (62.6) % Provision for credit losses - unfunded commitments 2,357 (585) (2,712) (502.9) % (186.9) % Total provision for credit losses expense $ 6,637 4,369 8,744 51.9 % (24.1) % The total provision for credit losses for the quarter ended June 30, 2026 was $7 million primarily driven by growth in our commercial lending portfolio, including unfunded commitments. Total provision for credit losses for the quarter ended March 31, 2026 was $4 million driven by growth in our commercial lending portfolio and increased uncertainty in the economic outlook. The Company saw an increase in classified loans to $524 million, or 3.96% of total loans, at June 30, 2026 from $518 million, or 4.57% of total loans, at June 30, 2025 and $498 million, or 3.81% of total loans, at March 31, 2026. The increase from the prior quarter was driven by changes in our commercial real estate portfolio which increased $29 million. The increase from the prior year was primarily due to classified loans acquired in the Penns Woods acquisition. Dollars in thousands Change 2Q26 vs. 2Q26 1Q26 2Q25 1Q26 2Q25 Noninterest income: Gain on sale of investments $ 336 11 — 2954.5 % NA Gain on sale of SBA loans 1,217 1,186 819 2.6 % 48.6 % Service charges and fees 16,908 17,118 15,797 (1.2) % 7.0 % Trust and other financial services income 9,449 8,618 7,948 9.6 % 18.9 % Gain on real estate owned, net 20 70 258 (71.4) % (92.2) % Income from bank-owned life insurance 2,013 2,042 1,421 (1.4) % 41.7 % Mortgage banking income 738 329 1,075 124.3 % (31.3) % Other operating income 3,548 3,208 3,620 10.6 % (2.0) % Total noninterest income $ 34,229 32,582 30,938 5.1 % 10.6 % Noninterest income increased $3 million from the quarter ended June 30, 2025 driven by an increase in service charges and fees driven by deposit related fees based on customer activity related to the Penns Woods acquisition and trust and other financial services income due to growth in our wealth management business. Noninterest income increased by $2 million from the quarter ended March 31, 2026, also due to an increase in trust and other financial services income due to growth in our wealth management business. Dollars in thousands Change 2Q26 vs. 2Q26 1Q26 2Q25 1Q26 2Q25 Noninterest expense: Personnel expense $ 63,476 58,330 55,213 8.8 % 15.0 % Non-personnel expense 40,807 45,708 42,327 (10.7) % (3.6) % Total noninterest expense $ 104,283 104,038 97,540 0.2 % 6.9 % Noninterest expense increased from the quarter ended June 30, 2025 due to a $8 million increase in personnel expenses driven by an increase in core compensation and benefits expense due to the addition of Penns Woods employees. Additionally, non-personnel expense decreased by $2 million due to a $6 million decrease in merger, asset disposition and restructuring expense coupled with a $3 million decrease in federal deposit insurance (FDIC) premium expense. The decrease in FDIC premiums expense related to prior period assessment rate changes. These decreases were partially offset by an increase of $2 million in amortization of intangible expense related to the acquisition coupled with increases in operating and processing expenses due to the addition of the Penns Woods branches to our footprint. Noninterest expense remained flat from the quarter ended March 31, 2026 due to an increase in personnel expense which was offset by a decrease in non-personnel expenses. Personnel expense increased $5 million driven by higher base salaries, reflecting annual merit increases and one additional business day, and higher incentive compensation expenses. Non-personnel expense decreased by $5 million due to an decrease of $3 million in FDIC insurance premiums in the quarter ended June 30, 2026 for the same reasons discussed above coupled with a $1 million decrease in premises and occupancy expenses based on seasonal operating expenses during the first quarter. Dollars in thousands Change 2Q26 vs. 2Q26 1Q26 2Q25 1Q26 2Q25 Income before income taxes $ 70,247 66,657 44,098 5.4 % 59.3 % Income tax expense 16,701 16,121 10,423 3.6 % 60.2 %
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Net income $ 53,546 50,536 33,675 6.0 % 59.0 % The provision for income taxes increased by $6 million from the quarter ended June 30, 2025 and $1 million for the quarter ended March 31, 2026 primarily due to the quarterly change in income before income taxes. Net income increased from the quarter ended June 30, 2025 and the quarter ended March 31, 2026 due to the factors discussed above. Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank 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, as well as employee benefits and wealth management services. As of June 30, 2026, Northwest operated 151 full-service financial centers and eleven free standing drive-up facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.'s common stock is listed on The Nasdaq Stock Market LLC ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed online at www.northwest.com. Investor Contact: Michael Perry, Corporate Development & Strategy (814) 726-2140 Media Contact: Ian Bailey, External Communications (380) 400-2423 # # # This release may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words "believe," "anticipate," "estimate," "expect," "project," "target," "goal" and similar expressions are intended to identify forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements include but are not limited to: statements of our goals, intentions and expectations; statements regarding our financial condition and results of operations, including statements related to our earnings outlook; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to the following: the possibility that any of the anticipated benefits of the merger with Penns Woods will not be realized or will not be realized within the expected time period; the effect of the merger on the combined company's customer and employee relationships and operating results; and other factors that may affect the results of operations and financial condition of the combined company; inflation and changes in the interest rate environment that reduce our margins, our loan origination, or the fair value of financial instruments; changes in asset quality, including increases in default rates on loans and higher levels of nonperforming loans and loan charge-offs generally; changes in laws, government regulations or supervision, examination and enforcement priorities affecting financial institutions, including as part of the regulatory reform agenda of the Trump administration, as well as changes in regulatory fees and capital requirements; changes in federal, state, or local tax laws and tax rates; general economic conditions, either nationally or in our market areas, that are different than expected, including inflationary or recessionary pressures or those related to changes in monetary, fiscal, regulatory, tariff and international trade policies of the U.S. government, including policies of the U.S. Department of Treasury and Board of Governors of the Federal Reserve System, and any related increases in compliance and other costs; trade disputes, barriers to trade or the emergence of trade restrictions and the resulting impacts on market volatility and global trade; growing fiscal deficits; potential recession or slowing of growth in the U.S., Europe and other regions; developments in the Middle East; adverse changes in the securities and credit markets; instability or breakdown in the financial services sector, including failures or rumors of failures of other depository institutions, along with actions taken by governmental agencies to address such turmoil; cyber- security concerns, including an interruption or breach in the security of our website or other information systems; technological changes that may be more difficult or expensive than expected; changes in liquidity, including the size and composition of our deposit portfolio, and the percentage of uninsured deposits in the portfolio; the ability of third-party providers to perform their obligations to us; competition among depository and other financial institutions, including with respect to deposit gathering, service charges and fees; our ability to enter new markets successfully and capitalize on growth opportunities; our ability to manage our internal growth and our ability to successfully integrate acquired entities, businesses or branch offices; changes in consumer spending, borrowing and savings habits; our ability to continue to increase and manage our commercial and personal loans; possible impairments of securities held by us, including those issued by government entities and government sponsored enterprises; changes in the value of our goodwill or other intangible assets; the impact of the economy on our loan portfolio (including cash flow and collateral values), investment portfolio, customers and capital market activities; our ability to receive regulatory approvals for proposed transactions or new lines of business; the effects of any federal government shutdown or the inability of the federal government to manage debt limits; changes in the financial performance and/or condition of our borrowers; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Securities and Exchange Commission (the "SEC"), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board ("FASB") and other accounting standard setters; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the effect of global or national war, conflict, or terrorism; our ability to manage market risk, credit risk and operational risk; the disruption to local, regional, national and global economic activity caused by infectious disease outbreaks, and the
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significant impact that any such outbreaks may have on our growth, operations and earnings; the effects of natural disasters and extreme weather events; changes in our ability to continue to pay dividends, either at current rates or at all; our ability to retain key employees; and our compensation expense associated with equity allocated or awarded to our employees. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, expected or projected. These and other risk factors are more fully described in this presentation and in the Northwest Bancshares, Inc. (the "Company") Annual Report on Form 10-K for the year ended December 31, 2025 under the section entitled "Item 1A - Risk Factors," and from time to time in other filings made by the Company with the SEC. These forward-looking statements speak only at the date of the presentation. The Company expressly disclaims any obligation to publicly release any updates or revisions to reflect any change in the Company's expectations with regard to any change in events, conditions or circumstances on which any such statement is based. Use of Non-GAAP Financial Measures This release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses these "non-GAAP" measures in its analysis of the Company's performance. Management believes these non-GAAP financial measures allow for better comparability of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. See the pages 9 and 10 of this release for reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures where applicable. Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) (dollars in thousands, except per share amounts) June 30, 2026 December 31, 2025 Assets Cash and cash equivalents $ 248,499 233,647 Marketable securities available-for-sale (amortized cost of $1,972,165, $1,710,978 and $1,341,651, respectively) 1,829,179 1,586,382 Marketable securities held-to-maturity (fair value of $550,416, $605,929 and $628,936, respectively) 630,802 683,369 Total cash and cash equivalents and marketable securities 2,708,480 2,503,398 Loans held-for-sale 15,391 22,437 Residential mortgage loans 3,001,908 3,100,780 Home equity loans 1,497,157 1,507,532 Consumer loans 2,843,058 2,563,890 Commercial real estate loans 2,988,237 3,296,902 Commercial and industrial loans 2,898,867 2,538,212 Total loans receivable 13,229,227 13,007,316 Allowance for credit losses (149,321) (150,212) Loans receivable, net 13,079,906 12,857,104 FHLB stock, at cost 43,345 36,628 Accrued interest receivable 57,473 56,291 Real estate owned, net 63 76 Premises and equipment, net 144,423 140,381 Bank-owned life insurance 293,354 294,386 Goodwill 444,997 444,330 Other intangible assets, net 35,312 39,667 Other assets 384,395 371,919 Total assets $ 17,207,139 16,766,617 Liabilities and shareholders' equity Liabilities Noninterest-bearing demand deposits $ 3,191,560 3,123,229 Interest-bearing demand deposits 2,916,518 2,995,759 Money market deposit accounts 2,766,675 2,540,818 Savings deposits 2,459,255 2,366,513 Time deposits 2,827,810 2,916,698 Total deposits 14,161,818 13,943,017 Borrowed funds 612,075 446,283 Subordinated debt 114,800 114,800 Junior subordinated debentures 130,223 130,093 Advances by borrowers for taxes and insurance 47,400 37,309
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Accrued interest payable 8,385 6,846 Other liabilities 205,031 197,845 Total liabilities 15,279,732 14,876,193 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, 146,396,520, 146,107,964 and 127,842,403 shares issued and outstanding, respectively 1,464 1,461 Additional paid-in capital 1,274,117 1,270,444 Retained earnings 734,423 689,210 Accumulated other comprehensive loss (82,597) (70,691) Total shareholders' equity 1,927,407 1,890,424 Total liabilities and shareholders' equity $ 17,207,139 16,766,617 Equity to assets 11.20 % 11.27 % Tangible common equity to tangible assets* 8.65 % 8.64 % Book value per share $ 13.17 12.94 Tangible book value per share* $ 9.88 9.63 Closing market price per share $ 15.16 12.00 Full time equivalent employees 2,183 2,169 Number of banking offices 162 161 * Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items. Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts) Quarter ended June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Interest income: Loans receivable $ 182,469 180,549 184,047 177,723 154,914 Mortgage-backed securities 18,024 16,999 14,071 12,668 12,154 Taxable investment securities 1,799 1,601 1,324 1,183 999 Tax-free investment securities 674 762 777 752 512 FHLB stock dividends 738 768 701 652 318 Interest-earning deposits 1,436 871 1,905 1,700 2,673 Total interest income 205,140 201,550 202,825 194,678 171,570 Interest expense: Deposits 50,384 51,083 52,947 51,880 46,826 Borrowed funds 7,818 7,985 7,712 6,824 5,300 Total interest expense 58,202 59,068 60,659 58,704 52,126 Net interest income 146,938 142,482 142,166 135,974 119,444 Provision for credit losses - loans 4,280 4,954 5,743 31,394 11,456 Provision for credit losses - unfunded commitments 2,357 (585) 1,981 (189) (2,712) Net interest income after provision for credit losses 140,301 138,113 134,442 104,769 110,700 Noninterest income: Gain on sale of investments 336 11 142 36 — Gain on sale of SBA loans 1,217 1,186 437 341 819 Service charges and fees 16,908 17,118 17,377 16,911 15,797 Trust and other financial services income 9,449 8,618 8,416 8,040 7,948 Gain on real estate owned, net 20 70 148 132 258 Income from bank-owned life insurance 2,013 2,042 8,269 1,751 1,421 Mortgage banking income 738 329 379 1,003 1,075 Other operating income 3,548 3,208 2,609 3,984 3,620 Total noninterest income 34,229 32,582 37,777 32,198 30,938 Noninterest expense: Compensation and employee benefits 63,476 58,330 65,143 63,014 55,213 Premises and occupancy costs 8,494 9,863 8,170 7,707 7,122 Office operations 3,660 3,875 4,217 3,495 2,910 Collections expense 665 878 856 776 838 Processing expenses 16,948 16,806 16,454 15,072 12,973 Marketing expenses 2,362 1,668 1,827 1,932 3,018 Federal deposit insurance premiums (291) 2,895 3,538 3,361 2,296 Professional services 3,490 3,523 3,366 3,010 3,990 Amortization of intangible assets 2,166 2,189 2,257 1,974 436
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Merger, asset disposition and restructuring expense 426 631 4,160 31,260 6,244 Other expenses 2,887 3,380 3,533 1,897 2,500 Total noninterest expense 104,283 104,038 113,521 133,498 97,540 Income before income taxes 70,247 66,657 58,698 3,469 44,098 Income tax expense 16,701 16,121 12,985 302 10,423 Net income $ 53,546 50,536 45,713 3,167 33,675 Basic earnings per share $ 0.37 0.35 0.31 0.02 0.26 Diluted earnings per share $ 0.36 0.34 0.31 0.02 0.26 Weighted average common shares outstanding - diluted 147,127,223 146,850,635 146,703,966 141,175,516 128,114,509 Annualized return on average equity 11.20 % 10.86 % 9.70 % 0.69 % 8.26 % Annualized return on average assets 1.27 % 1.22 % 1.10 % 0.08 % 0.93 % Annualized return on average tangible common equity* 14.94 % 14.59 % 13.10 % 0.90 % 10.78 % Efficiency ratio 57.56 % 59.43 % 63.09 % 79.38 % 64.86 % Efficiency ratio, excluding certain items** 56.24 % 57.82 % 59.57 % 59.63 % 60.42 % * Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items. ** Excludes gain on sale of investments, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items. Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts) Six months ended June 30, 2026 2025 Interest income: Loans receivable $ 363,018 319,552 Mortgage-backed securities 35,023 23,884 Taxable investment securities 3,400 1,932 Tax-free investment securities 1,436 1,024 FHLB stock dividends 1,506 684 Interest-earning deposits 2,307 5,089 Total interest income 406,690 352,165 Interest expense: Deposits 101,467 94,151 Borrowed funds 15,803 10,752 Total interest expense 117,270 104,903 Net interest income 289,420 247,262 Provision for credit losses - loans 9,234 19,712 Provision for credit losses - unfunded commitments 1,772 (3,057) Net interest income after provision for credit losses 278,414 230,607 Noninterest income: Gain on sale of investments 347 — Gain on sale of SBA loans 2,403 2,057 Service charges and fees 34,026 30,784 Trust and other financial services income 18,067 15,858 Gain on real estate owned, net 90 342 Income from bank-owned life insurance 4,055 2,752 Mortgage banking income 1,067 1,771 Other operating income 6,756 5,729 Total noninterest income 66,811 59,293 Noninterest expense: Compensation and employee benefits 121,806 109,753 Premises and occupancy costs 18,357 15,522 Office operations 7,535 5,887 Collections expense 1,543 1,166 Processing expenses 33,754 26,963 Marketing expenses 4,030 4,898 Federal deposit insurance premiums 2,604 4,624 Professional services 7,013 6,746 Amortization of intangible assets 4,355 940 Merger, asset disposition and restructuring expense 1,057 7,367 Other expenses 6,267 5,411
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Total noninterest expense 208,321 189,277 Income before income taxes 136,904 100,623 Income tax expense 32,822 23,490 Net income $ 104,082 77,133 Basic earnings per share $ 0.71 0.60 Diluted earnings per share $ 0.71 0.60 Weighted average common shares outstanding - diluted 146,990,065 128,347,141 Annualized return on average equity 11.03 % 9.56 % Annualized return on average assets 1.25 % 1.08 % Annualized return on tangible common equity* 14.77 % 12.51 % Efficiency ratio 58.48 % 61.74 % Efficiency ratio, excluding certain items** 57.02 % 59.03 % * Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items. ** Excludes gain on sale of investments, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items. Northwest Bancshares, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited) * (dollars in thousands, except per share amounts) Quarter ended Six months June 30, 2026 March 31, 2026 June 30, 2025 2026 Reconciliation of net income to adjusted net income: Net income (GAAP) $ 53,546 50,536 33,675 104,082 Non-GAAP adjustments Add: merger, asset disposition and restructuring expense 426 631 6,244 1,057 Less: tax benefit of non-GAAP adjustments (119) (177) (1,748) (296) Adjusted net income (non-GAAP) $ 53,853 50,990 38,171 104,843 Diluted earnings per share (GAAP) $ 0.36 0.34 0.26 0.71 Diluted adjusted earnings per share (non-GAAP) $ 0.37 0.35 0.30 0.71 Average equity $ 1,918,135 1,887,742 1,635,966 1,903,023 Average assets 16,863,639 16,832,777 14,468,197 16,848,293 Annualized return on average equity (GAAP) 11.20 % 10.86 % 8.26 % 11.03 % Annualized return on average assets (GAAP) 1.27 % 1.22 % 0.93 % 1.25 % Annualized return on average equity, excluding merger, asset disposition and restructuring expense, net of tax (non-GAAP) 11.26 % 10.95 % 9.36 % 11.11 % Annualized return on average assets, excluding merger, asset disposition and restructuring expense, net of tax (non-GAAP) 1.28 % 1.23 % 1.06 % 1.25 % The following non-GAAP financial measures used by the Company provide information useful to investors in understanding our operating performance and trends, and facilitate comparisons with the performance of our peers. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's Consolidated Statements of Financial Condition. June 30, 2026 December 31, 2025 June 30, 2025 Tangible common equity to assets Total shareholders' equity $ 1,927,407 1,890,424 1,642,068 Less: goodwill and intangible assets (480,309) (483,997) (382,894) Tangible common equity $ 1,447,098 1,406,427 1,259,174 Total assets $ 17,207,139 16,766,617 14,485,107 Less: goodwill and intangible assets (480,309) (483,997) (382,894) Tangible assets $ 16,726,830 16,282,620 14,102,213 Tangible common equity to tangible assets 8.65 % 8.64 % 8.93 %
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Tangible book value per share Tangible common equity $ 1,447,098 1,406,427 1,259,174 Common shares outstanding 146,396,520 146,107,964 127,842,403 Tangible book value per share 9.88 9.63 9.85 Northwest Bancshares, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Unaudited) * (dollars in thousands, except per share amounts) The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's Consolidated Statements of Inc Quarter ended June 30, 2026 March 31, 2026 December 31, 2025 Annualized return on average tangible common equity Net income $ 53,546 50,536 45,713 Average shareholders' equity 1,918,135 1,887,742 1,870,088 Less: average goodwill and intangible assets (481,022) (483,240) (485,252) Average tangible common equity $ 1,437,113 1,404,502 1,384,836 Annualized return on average tangible common equity 14.94 % 14.59 % 13.10 % Efficiency ratio, excluding gain on sale of investments, amortization and merger, asset disposition and restructuring expenses Noninterest expense $ 104,283 104,038 113,521 Less: amortization expense (2,166) (2,189) (2,257) Less: merger, asset disposition and restructuring expenses (426) (631) (4,160) Noninterest expense, excluding amortization and merger, assets disposition and restructuring expenses $ 101,691 101,218 107,104 Net interest income $ 146,938 142,482 142,166 Noninterest income 34,229 32,582 37,777 Less: gain on the sale of investments (336) (11) (142) Net interest income plus noninterest income, excluding gain on sale of investments $ 180,831 175,053 179,801 Efficiency ratio, excluding gain on sale of investments, amortization and merger, asset disposition and restructuring expenses 56.24 % 57.82 % 59.57 % * 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 merger, gain on sale of investments, asset disposition and restructuring expense and amortization 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. Northwest Bancshares, Inc. and Subsidiaries Deposits (Unaudited) (dollars in thousands) Generally, deposits in excess of $250,000 per depositor are not insured by the Federal Deposit Insurance Corporation. The following table provides details regarding the Company's uninsured deposits portfolio: As of June 30, 2026 Balance Percent of total deposits Number of relationships Uninsured deposits per the Call Report (1) $ 3,945,748 27.9 % 6,287 Less intercompany deposit accounts 1,427,595 10.1 % 12 Less collateralized deposit accounts 445,460 3.2 % 253 Uninsured deposits excluding intercompany and collateralized accounts $ 2,072,693 14.6 % 6,022 (1) Uninsured deposits presented may be different from actual amounts due to titling of accounts. Our largest uninsured depositor, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $185 million, or 1.3% of total deposits, as of June 30, 2026. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $404 million, or 2.9% of total deposits, as of June 30, 2026. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $344,187 as of June 30, 2026.
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The following table provides additional details for the Company's deposit portfolio: As of June 30, 2026 Balance Percent of total deposits Number of accounts Personal noninterest bearing demand deposits $ 1,750,490 12.3 % 310,031 Business noninterest bearing demand deposits 1,441,070 10.2 % 47,768 Personal interest-bearing demand deposits 1,372,409 9.7 % 54,166 Business interest-bearing demand deposits 1,544,109 10.9 % 8,805 Personal money market deposits 1,788,118 12.6 % 28,151 Business money market deposits 978,557 6.9 % 3,179 Savings deposits 2,459,255 17.4 % 187,619 Time deposits 2,827,810 20.0 % 76,448 Total deposits $ 14,161,818 100.0 % 716,167 Our average deposit account balance as of June 30, 2026 was $19,774. The Company's insured cash sweep deposit balance was $743 million as of June 30, 2026. Northwest Bancshares, Inc. and Subsidiaries Regulatory Capital Requirements (Unaudited) (dollars in thousands) At June 30, 2026 Actual (1) Minimum capital requirements (2) Well capitalized requirements Amount Ratio Amount Ratio Amount Ratio Total capital (to risk weighted assets) Northwest Bancshares, Inc. $ 1,934,993 15.17 % $ 1,339,188 10.50 % $ 1,275,417 10.00 % Northwest Bank 1,789,556 14.04 % 1,337,925 10.50 % 1,274,214 10.00 % Tier 1 capital (to risk weighted assets) Northwest Bancshares, Inc. 1,557,333 12.21 % 1,084,105 8.50 % 765,250 6.00 % Northwest Bank 1,630,118 12.79 % 1,083,082 8.50 % 1,019,371 8.00 % Common equity tier 1 capital (to risk weighted assets) Northwest Bancshares, Inc. 1,557,333 12.21 % 892,792 7.00 % N/A N/A Northwest Bank 1,630,118 12.79 % 891,950 7.00 % 828,239 6.50 % Tier 1 capital (leverage) (to average assets) Northwest Bancshares, Inc. 1,557,333 9.37 % 664,478 4.00 % N/A N/A Northwest Bank 1,630,118 9.83 % 663,100 4.00 % 828,874 5.00 % (1) June 30, 2026 figures are estimated. (2) 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 further information related to the capital conservation buffer, see "Item 1. Business - Supervision and Regulation" of our 2025 Annual Report on Form 10-K. Northwest Bancshares, Inc. and Subsidiaries Marketable Securities (Unaudited) (dollars in thousands) June 30, 2026 Marketable securities available-for-sale Amortized cost Gross unrealized holding gains Gross unrealized holding losses Fair value Weighted aver duration Debt issued by the U.S. government and agencies: Due after ten years $ 39,877 — (7,237) 32,640 5 Municipal securities: Due in one year or less 1,250 1 — 1,251 0 Due after one year through five years 5,605 13 (22) 5,596 2 Due after five years through ten years 20,303 160 (1,333) 19,130 6 Due after ten years 48,105 182 (6,234) 42,053 9 Corporate debt issues: Due after one year through five years 16,405 15 (107) 16,313 2
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Due after five years through ten years 76,798 1,557 (635) 77,720 5 Due after ten years 5,000 25 — 5,025 4 Mortgage-backed agency securities: Fixed rate pass-through 527,666 1,750 (14,661) 514,755 7 Variable rate pass-through 364 5 — 369 3 Fixed rate agency CMBS 634,265 198 (79,321) 555,142 3 Variable rate agency CMBS 6,283 — (5) 6,278 1 Fixed rate agency CMOs 562,128 478 (37,872) 524,734 4 Variable rate agency CMOs 28,116 62 (5) 28,173 4 Total mortgage-backed agency securities 1,758,822 2,493 (131,864) 1,629,451 5 Total marketable securities available-for-sale $ 1,972,165 4,446 (147,432) 1,829,179 5 Marketable securities held-to-maturity Government sponsored Due after one year through five years $ 107,990 — (8,338) 99,652 2 Mortgage-backed agency securities: Fixed rate pass-through 91,615 — (10,366) 81,249 3 Variable rate pass-through 294 1 — 295 4 Fixed rate agency CMBS 72,220 — (12,750) 59,470 3 Fixed rate agency CMOs 358,155 — (48,933) 309,222 5 Variable rate agency CMOs 528 — — 528 3 Total mortgage-backed agency securities 522,812 1 (72,049) 450,764 4 Total marketable securities held-to-maturity $ 630,802 1 (80,387) 550,416 4 Northwest Bancshares, Inc. and Subsidiaries Asset Quality (Unaudited) (dollars in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Nonaccrual loans: Residential mortgage loans $ 11,766 10,500 12,247 11,497 8,482 Home equity loans 5,370 4,780 3,755 6,979 3,507 Consumer loans 4,791 5,732 5,711 5,898 4,418 Commercial real estate loans 47,440 47,337 57,485 82,580 62,091 Commercial and industrial loans 21,984 22,594 28,085 21,371 23,896 Total nonaccrual loans 91,351 90,943 107,283 128,325 102,394 Loans 90 days past due and still accruing 573 543 646 701 493 Nonperforming loans 91,924 91,486 107,929 129,026 102,887 Real estate owned, net 63 65 76 174 48 Nonperforming assets $ 91,987 91,551 108,005 129,200 102,935 Nonperforming loans to total loans 0.69 % 0.70 % 0.83 % 1.00 % 0.91 % Nonperforming assets to total assets 0.53 % 0.54 % 0.64 % 0.79 % 0.71 % Allowance for credit losses to total loans 1.13 % 1.15 % 1.15 % 1.22 % 1.14 % Allowance for credit losses to nonperforming loans 162.44 % 164.01 % 139.18 % 121.99 % 125.53 % Northwest Bancshares, Inc. and Subsidiaries Loans by Credit Quality Indicators (Unaudited) (dollars in thousands) At June 30, 2026 Pass Special mention * Substandard ** Doubtful Loss Loans receivable Personal Banking: Residential mortgage loans $ 2,990,142 — 11,766 — — 3,001,908 Home equity loans 1,491,787 — 5,370 — — 1,497,157 Consumer loans 2,837,791 — 5,267 — — 2,843,058 Total Personal Banking 7,319,720 — 22,403 — — 7,342,123 Commercial Banking: Commercial real estate loans 2,443,890 152,441 391,906 — — 2,988,237 Commercial and industrial loans 2,742,819 46,301 109,747 — — 2,898,867 Total Commercial Banking 5,186,709 198,742 501,653 — — 5,887,104 Total loans $ 12,506,429 198,742 524,056 — — 13,229,227
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At March 31, 2026 Personal Banking: Residential mortgage loans $ 3,025,485 — 10,499 — — 3,035,984 Home equity loans 1,491,020 — 4,780 — — 1,495,800 Consumer loans 2,654,310 — 6,257 — — 2,660,567 Total Personal Banking 7,170,815 — 21,536 — — 7,192,351 Commercial Banking: Commercial real estate loans 2,651,304 147,384 362,626 — — 3,161,314 Commercial and industrial loans 2,543,444 45,383 113,456 — — 2,702,283 Total Commercial Banking 5,194,748 192,767 476,082 — — 5,863,597 Total loans $ 12,365,563 192,767 497,618 — — 13,055,948 At December 31, 2025 Personal Banking: Residential mortgage loans $ 3,088,533 — 12,247 — — 3,100,780 Home equity loans 1,503,777 — 3,755 — — 1,507,532 Consumer loans 2,557,577 — 6,313 — — 2,563,890 Total Personal Banking 7,149,887 — 22,315 — — 7,172,202 Commercial Banking: Commercial real estate loans 2,817,802 131,589 347,511 — — 3,296,902 Commercial and industrial loans 2,392,830 61,852 83,530 — — 2,538,212 Total Commercial Banking 5,210,632 193,441 431,041 — — 5,835,114 Total loans $ 12,360,519 193,441 453,356 — — 13,007,316 At September 30, 2025 Personal Banking: Residential mortgage loans $ 3,146,355 — 11,498 — — 3,157,853 Home equity loans 1,513,914 — 6,979 — — 1,520,893 Consumer loans 2,447,208 — 6,597 — — 2,453,805 Total Personal Banking 7,107,477 — 25,074 — — 7,132,551 Commercial Banking: Commercial real estate loans 2,912,166 171,005 412,493 — — 3,495,664 Commercial and industrial loans 2,141,236 82,009 89,473 — — 2,312,718 Total Commercial Banking 5,053,402 253,014 501,966 — — 5,808,382 Total loans $ 12,160,879 253,014 527,040 — — 12,940,933 At June 30, 2025 Personal Banking: Residential mortgage loans $ 3,039,809 — 12,317 — — 3,052,126 Home equity loans 1,153,808 — 3,712 — — 1,157,520 Consumer loans 2,206,363 — 4,912 — — 2,211,275 Total Personal Banking 6,399,980 — 20,941 — — 6,420,921 Commercial Banking: Commercial real estate loans 2,266,057 112,852 403,495 — — 2,782,404 Commercial and industrial loans 1,956,751 87,951 93,797 — — 2,138,499 Total Commercial Banking 4,222,808 200,803 497,292 — — 4,920,903 Total loans $ 10,622,788 200,803 518,233 — — 11,341,824 * Includes $79.1 million, $85.6 million, $38.2 million, $41.0 million, and $4.0 million of acquired loans at June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively. ** Includes $163.0 million, $100.4 million, $93.2 million, $96.9 million, and $19.2 million of acquired loans at June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively. Northwest Bancshares, Inc. and Subsidiaries Loan Delinquency (Unaudited) (dollars in thousands) June 30, 2026 * March 31, 2026 * December 31, 2025 * September 30, 2025 Loans delinquent 30 days to 59 days: Residential mortgage loans $ 1,140 — % $ 44,502 1.5 % $ 41,180 1.3 % $ 1,639 Home equity loans 6,611 0.4 % 5,932 0.4 % 6,488 0.4 % 4,644 Consumer loans 11,812 0.4 % 10,429 0.4 % 14,063 0.5 % 12,257 Commercial real estate loans 4,370 0.1 % 17,541 0.6 % 28,645 0.9 % 14,600 Commercial and industrial loans 2,844 0.1 % 7,127 0.3 % 5,657 0.2 % 9,974 Total loans delinquent 30 days to 59 days $ 26,777 0.2 % $ 85,531 0.7 % $ 96,033 0.7 % $ 43,114 Loans delinquent 60 days to 89 days: Residential mortgage loans $ 7,468 0.2 % $ 2,531 0.1 % $ 10,934 0.4 % $ 7,917
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Home equity loans 2,116 0.1 % 2,946 0.2 % 2,316 0.2 % 2,671 Consumer loans 3,508 0.1 % 4,264 0.2 % 4,599 0.2 % 3,691 Commercial real estate loans 3,208 0.1 % 25,859 0.8 % 12,941 0.4 % 1,575 Commercial and industrial loans 5,837 0.2 % 8,432 0.3 % 2,899 0.1 % 1,915 Total loans delinquent 60 days to 89 days $ 22,137 0.2 % $ 44,032 0.3 % $ 33,689 0.3 % $ 17,769 Loans delinquent 90 days or more: Residential mortgage loans $ 10,671 0.4 % $ 6,468 0.2 % $ 10,001 0.3 % $ 9,427 Home equity loans 4,343 0.3 % 3,263 0.2 % 2,492 0.2 % 2,963 Consumer loans 4,038 0.1 % 4,561 0.2 % 4,893 0.2 % 4,865 Commercial real estate loans 29,840 1.0 % 18,282 0.6 % 32,745 1.0 % 56,453 Commercial and industrial loans 15,659 0.5 % 11,266 0.4 % 16,269 0.6 % 9,490 Total loans delinquent 90 days or more $ 64,551 0.5 % $ 43,840 0.3 % $ 66,400 0.5 % $ 83,198 Total loans delinquent $ 113,465 0.9 % $ 173,403 1.3 % $ 196,122 1.5 % $ 144,081 * Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding. Northwest Bancshares, Inc. and Subsidiaries Allowance for Credit Losses (Unaudited) (dollars in thousands) Quarter ended June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Beginning balance $ 150,045 150,212 157,396 129,159 122,809 Initial allowance on loans purchased with credit deterioration — — — 6,029 — Provision 4,280 4,954 5,743 31,394 11,456 Charge-offs residential mortgage (465) (1,001) (228) (137) (273) Charge-offs home equity (383) (291) (558) (336) (413) Charge-offs consumer (4,121) (4,531) (4,139) (3,994) (3,331) Charge-offs commercial real estate (889) (254) (9,765) (4,312) (293) Charge-offs commercial and industrial (945) (1,155) (532) (2,395) (3,597) Recoveries 1,799 2,111 2,295 1,988 2,801 Ending balance $ 149,321 150,045 150,212 157,396 129,159 Net charge-offs to average loans, annualized 0.15 % 0.16 % 0.40 % 0.29 % 0.18 % Six months ended June 30, 2026 2025 Beginning balance $ 150,212 116,819 Provision 9,234 19,712 Charge-offs residential mortgage (1,466) (861) Charge-offs home equity (674) (686) Charge-offs consumer (8,652) (7,136) Charge-offs commercial real estate (1,143) (409) Charge-offs commercial and industrial (2,100) (4,168) Recoveries 3,910 5,888 Ending balance $ 149,321 129,159 Net charge-offs to average loans, annualized 0.16 % 0.13 % 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. June 30, 2026 March 31, 2026 Average balance Interest Avg. yield/ cost Average balance Interest
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Assets: Interest-earning assets: Residential mortgage loans $ 3,030,237 30,219 3.99 % $ 3,078,476 30,596 Home equity loans 1,494,049 21,798 5.85 % 1,501,203 21,512 Consumer loans 2,658,435 36,064 5.44 % 2,529,868 34,270 Commercial real estate loans 3,131,545 49,291 6.23 % 3,342,140 51,337 Commercial and industrial loans 2,779,969 45,753 6.51 % 2,632,150 43,497 Total loans receivable (a) (b) (d) 13,094,235 183,125 5.61 % 13,083,837 181,212 Mortgage-backed securities (c) 2,232,535 18,024 3.23 % 2,148,996 16,999 Investment securities (c) (d) 299,068 2,652 3.55 % 317,996 2,566 FHLB stock, at cost 34,416 738 8.60 % 36,220 768 Other interest-earning deposits 141,898 1,436 4.00 % 139,970 871 Total interest-earning assets 15,802,152 205,975 5.23 % 15,727,019 202,416 Noninterest-earning assets (e) 1,061,487 1,105,758 Total assets $ 16,863,639 $ 16,832,777 Liabilities and shareholders' equity: Interest-bearing liabilities: Savings deposits $ 2,447,522 6,531 1.07 % $ 2,395,887 6,072 Interest-bearing demand deposit 2,973,878 8,422 1.14 % 2,999,478 8,741 Money market deposit accounts 2,728,590 12,723 1.87 % 2,609,333 12,128 Time deposits 2,882,261 22,708 3.16 % 2,967,098 24,142 Total interest bearing deposits (g) 11,032,251 50,384 1.83 % 10,971,796 51,083 Borrowed funds (f) 379,262 3,740 3.96 % 404,547 3,875 Subordinated debt 114,800 2,200 7.58 % 114,800 2,204 Junior subordinated debentures 130,181 1,878 5.70 % 130,121 1,906 Total interest-bearing liabilities 11,656,494 58,202 2.00 % 11,621,264 59,068 Noninterest-bearing demand deposits (g) 3,101,574 3,074,939 Noninterest-bearing liabilities 187,436 248,832 Total liabilities 14,945,504 14,945,035 Shareholders' equity 1,918,135 1,887,742 Total liabilities and shareholders' equity $ 16,863,639 $ 16,832,777 Net interest income/Interest rate spread FTE 147,773 3.23 % 143,348 Net interest-earning assets/Net interest margin FTE $ 4,145,658 3.75 % $ 4,105,755 Tax equivalent adjustment (d) 835 866 Net interest income, GAAP basis 146,938 142,482 Ratio of interest-earning assets to interest-bearing liabilities 1.36X 1.35X (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 and collateralized borrowings. (g) Average cost of total deposits were 1.43%, 1.48%, 1.53%, 1.55%, and 1.55%, 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 and average cost of interest-bearing liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the aver balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages. Six months ended June 30, 2026 2025 Average balance Interest Avg. yield/cost Average balance Interest yi Assets Interest-earning assets: Residential mortgage loans $ 3,054,223 60,815 3.98 % $ 3,123,353 60,372 Home equity loans 1,497,606 43,310 5.83 % 1,142,708 32,429 Consumer loans 2,594,507 70,334 5.47 % 2,011,012 54,921 Commercial real estate loans 3,236,260 100,628 6.18 % 2,858,064 99,973 Commercial loans 2,706,468 89,250 6.56 % 2,077,799 73,299 Loans receivable (a) (b) (d) 13,089,064 364,337 5.61 % 11,212,936 320,994 Mortgage-backed securities (c) 2,190,996 35,023 3.20 % 1,781,959 23,884 Investment securities (c) (d) 308,480 5,218 3.38 % 264,945 3,269 FHLB stock, at cost 35,313 1,505 8.60 % 19,342 684 Other interest-earning deposits 140,934 2,307 3.26 % 231,914 5,089
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Total interest-earning assets 15,764,787 408,390 5.22 % 13,511,096 353,920 Noninterest-earning assets (e) 1,083,506 924,426 Total assets $ 16,848,293 $ 14,435,522 Liabilities and shareholders' equity Interest-bearing liabilities: Savings deposits $ 2,421,847 12,603 1.05 % $ 2,203,289 12,973 Interest-bearing demand deposits 2,986,607 17,163 1.16 % 2,601,604 14,255 Money market deposit accounts 2,669,291 24,851 1.88 % 2,102,124 18,964 Time deposits 2,924,445 46,850 3.23 % 2,614,238 47,959 Total interest bearing deposits (g) 11,002,190 101,467 1.86 % 9,521,255 94,151 Borrowed funds (f) 391,835 7,615 3.92 % 216,189 4,252 Subordinated debt 114,800 4,405 7.63 % 114,618 2,296 Junior subordinated debentures 130,151 3,783 5.78 % 129,889 4,204 Total interest-bearing liabilities 11,638,976 117,270 2.03 % 9,981,951 104,903 Noninterest-bearing demand deposits (g) 3,088,330 2,600,113 Noninterest-bearing liabilities 217,964 227,116 Total liabilities 14,945,270 12,809,180 Shareholders' equity 1,903,023 1,626,342 Total liabilities and shareholders' equity $ 16,848,293 $ 14,435,522 Net interest income/Interest rate spread 291,120 3.19 % 249,017 Net interest-earning assets/Net interest margin $ 4,125,811 3.72 % $ 3,529,145 Tax equivalent adjustment (d) 1,700 1,755 Net interest income, GAAP basis 289,420 247,262 Ratio of interest-earning assets to interest-bearing liabilities 1.35X 1.35X (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 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 and collateralized borrowings. (g) Average cost of deposits were 1.45% and 1.57%, respectively.