Document

EXHIBIT 99.1

PRESS RELEASE OF NORTHWEST BANCSHARES, INC.

EARNINGS RELEASE

FOR IMMEDIATE RELEASE


Contact:			Ronald J. Seiffert, Chairman, President and Chief Executive Officer (814) 726-2140
			William W. Harvey, Jr., Senior Executive Vice President and Chief Financial Officer (814) 726-2140

Northwest Bancshares, Inc. Announces Fourth Quarter 2021 Earnings and Quarterly Dividend

Columbus, Ohio — January 24, 2022

Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2021 of $30.1 million, or $0.24 per diluted share. This represents a decrease of $5.0 million, or 14.3%, compared to the same quarter last year when net income was $35.1 million, or $0.28 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended December 31, 2021 were 7.65% and 0.82% compared to 9.00% and 1.01% for the same quarter last year.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on February 14, 2022 to shareholders of record as of February 3, 2022. This is the 109th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of December 31, 2021, this represents an annualized dividend yield of approximately 5.6%.

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

Mr. Seiffert continued, "Our overall in-branch transaction volumes once again declined in 2021 as our customers continued to migrate towards our digital banking experience. As a result, we have decided to further optimize our branch network by consolidating 12% of our branch offices in April of 2022. This effort, coupled with other efficiency measures, generated $2.8 million in severance and restructuring costs in the fourth quarter with an additional $3.5 million expected to be recognized in the first quarter of 2022. This overall initiative is anticipated to generate approximately $8.0 million in annual operating expense savings beginning in the second quarter of 2022."

Net interest income decreased by $6.2 million, or 6.1%, to $96.7 million for the quarter ended December 31, 2021, from $102.9 million for the quarter ended December 31, 2020, due to a $10.4 million, or 9.8%, decrease in interest income on loans receivable. The decrease in interest income on loans was due to a decrease of $616.7 million, or 5.8%, in the average balance of loans in addition to a reduction in the yield on loans to 3.79% for the quarter ended December 31, 2021 from 3.97% for the same quarter last year. Partially offsetting this decrease was a decrease in interest expense on deposits of $2.4 million, or 36.0%, primarily due to a decrease in our cost of interest-bearing liabilities to 0.26% for the quarter ended December 31, 2021 from 0.38% for the quarter ended December 31, 2020 as market interest rates continued to decline over the past year. Partially offsetting the decline in deposit interest rates was growth in the average balance of interest-bearing liabilities of $266.9 million, or 2.9%. The net impact of these changes caused the Company's net interest margin to decrease to 2.89% for the quarter ended December 31, 2021 from 3.26% for the same quarter last year.

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

Noninterest income decreased by $5.1 million, or 15.8%, to $27.0 million for the quarter ended December 31, 2021 from $32.1 million for the quarter ended December 31, 2020. This decrease was primarily due to the decrease in mortgage banking

income of $5.0 million, or 70.2%, to $2.1 million for the quarter ended December 31, 2021 from $7.1 million for the quarter ended December 31, 2020. This decrease in mortgage banking income reflects the continued impact of less favorable pricing in the secondary market. In addition, there was a decrease in insurance commission income of $2.0 million, or 100.0%. Partially offsetting these decreases was an increase in trust and brokerage income as growth in both customer accounts and market gains contributed to a $1.1 million, or 19.2%, increase over the prior year.

Noninterest expense decreased $6.6 million, or 7.1%, to $86.3 million for the quarter ended December 31, 2021, from $92.8 million for the quarter ended December 31, 2020. This decrease primarily resulted from a $4.4 million, or 61.1%, decrease in merger, asset disposition and restructuring expense to $2.8 million for the quarter ended December 31, 2021 from $7.2 million for the quarter ended December 31, 2020 due to both periods incurring expenses as part of branch optimization initiatives. In addition, other expenses decreased $2.4 million, or 63.9%, to $1.3 million for the quarter ended December 31, 2021 from $3.7 million for the quarter ended December 31, 2020 primarily due to a reduction in the unfunded loan loss reserve associated with improving credit trends for construction loans and undrawn lines of credit in the current year. Slightly offsetting this decrease was an increase in processing expenses of $1.5 million, or 11.9%, to $13.6 million for the quarter ended December 31, 2021 from $12.2 million for the quarter ended December 31, 2020 as we continue to invest in technology and infrastructure and as activity driven utilization fees for online and mobile banking and loan origination platforms have increased.

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

Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank. Founded in 1896 and headquartered in Warren, Pennsylvania, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services. As of December 31, 2021, Northwest operates 162 full-service community banking offices and eight free standing drive-through facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.’s common stock is listed on the NASDAQ Global Select Market (“NWBI”). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.

# # #

Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; and (7) increased risk associated with commercial real-estate and business loans. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(dollars in thousands, except per share amounts)


	December 31, 2021			September 30, 2021		December 31, 2020
Assets
Cash and cash equivalents	$	1,279,259		1,090,485		736,277


Marketable securities available-for-sale (amortized cost of $1,565,002, $1,587,105 and $1,375,685, respectively)	1,548,592			1,583,715		1,398,941
Marketable securities held-to-maturity (fair value of $751,513, $609,777 and $179,666, respectively)	768,154			618,395		178,887
Total cash and cash equivalents and marketable securities	3,596,005			3,292,595		2,314,105

Residential mortgage loans held-for-sale	25,056			27,411		58,786
Residential mortgage loans	2,969,564			2,962,110		3,009,335
Home equity loans	1,319,931			1,350,348		1,467,736
Consumer loans	1,838,748			1,816,836		1,507,993
Commercial real estate loans	3,015,484			3,162,551		3,345,889
Commercial loans	847,609			879,712		1,191,110
Total loans receivable	10,016,392			10,198,968		10,580,849
Allowance for credit losses	(102,241)			(109,767)		(134,427)
Loans receivable, net	9,914,151			10,089,201		10,446,422


FHLB stock, at cost	14,184			14,567		21,748
Accrued interest receivable	25,599			26,995		35,554
Real estate owned, net	873			809		2,232
Premises and equipment, net	156,524			155,740		161,538
Bank-owned life insurance	256,213			254,871		253,951
Goodwill	380,997			380,997		382,279
Other intangible assets, net	12,836			14,041		19,936
Other assets	144,126			159,419		168,503
Total assets	$	14,501,508		14,389,235		13,806,268
Liabilities and shareholders’ equity
Liabilities
Noninterest-bearing demand deposits	$	3,099,526		3,052,115		2,716,224
Interest-bearing demand deposits	2,940,442			2,926,351		2,755,950
Money market deposit accounts	2,629,882			2,584,424		2,437,539
Savings deposits	2,303,760			2,271,496		2,047,424
Time deposits	1,327,555			1,387,827		1,642,096
Total deposits	12,301,165			12,222,213		11,599,233


Borrowed funds	139,093			126,496		159,715
Subordinated debt	123,575			123,486		123,329
Junior subordinated debentures	129,054			128,989		128,794
Advances by borrowers for taxes and insurance	44,582			26,951		45,230
Accrued interest payable	1,804			589		2,054
Other liabilities	178,664			198,743		209,210
Total liabilities	12,917,937			12,827,467		12,267,565
Shareholders’ equity
Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares issued	—			—		—
Common stock, $0.01 par value: 500,000,000 shares authorized, 126,612,183, 126,521,344, and 127,019,452 shares issued and outstanding, respectively	1,266			1,265		1,270
Additional paid-in capital	1,010,405			1,008,099		1,015,502
Retained earnings	609,529			604,787		555,480

Accumulated other comprehensive loss	(37,629)			(52,383)		(33,549)
Total shareholders’ equity	1,583,571			1,561,768		1,538,703
Total liabilities and shareholders’ equity	$	14,501,508		14,389,235		13,806,268

Equity to assets	10.92		%	10.85	%	11.14	%
Tangible common equity to assets*	8.43		%	8.34	%	8.48	%
Book value per share	$	12.51		12.34		12.11
Tangible book value per share*	$	9.40		9.22		8.95
Closing market price per share	$	14.16		13.28		12.74
Full time equivalent employees	2,332			2,404		2,421
Number of banking offices	170			170		170

* 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)


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

Interest income:
Loans receivable	$	95,295		97,475		95,255		102,318		105,681
Mortgage-backed securities	5,743			5,840		5,680		4,200		4,551
Taxable investment securities	640			649		693		634		471
Tax-free investment securities	688			628		594		575		656
FHLB stock dividends	82			71		138		116		192
Interest-earning deposits	467			352		192		183		178
Total interest income	102,915			105,015		102,552		108,026		111,729
Interest expense:
Deposits	4,295			4,540		4,773		5,514		6,714
Borrowed funds	1,964			2,056		2,050		2,054		2,127
Total interest expense	6,259			6,596		6,823		7,568		8,841
Net interest income	96,656			98,419		95,729		100,458		102,888
Provision for credit losses	(1,909)			(4,354)		—		(5,620)		(2,230)
Net interest income after provision for credit losses	98,565			102,773		95,729		106,078		105,118
Noninterest income:
Gain/(loss) on sale of investments	(4)			(46)		(105)		(21)		75

Service charges and fees	13,500			13,199		12,744		12,394		13,074


Trust and other financial services income	6,820			7,182		7,435		6,484		5,722
Insurance commission income	—			44		1,043		2,546		2,034
Gain/(loss) on real estate owned, net	71			247		166		(42)		114
Income from bank-owned life insurance	1,343			1,332		1,639		1,736		1,330
Mortgage banking income	2,120			3,941		3,811		6,020		7,120
Gain on sale of insurance business	—			—		25,327		—		—
Other operating income	3,192			3,287		2,648		2,836		2,654
Total noninterest income	27,042			29,186		54,708		31,953		32,123
Noninterest expense:
Compensation and employee benefits	48,691			49,063		48,894		47,239		48,209
Premises and occupancy costs	7,104			7,745		7,410		8,814		7,614
Office operations	3,144			4,143		3,317		3,165		4,009
Collections expense	602			411		303		616		893
Processing expenses	13,639			13,517		15,151		13,456		12,186
Marketing expenses	2,054			2,102		2,101		1,980		1,994
Federal deposit insurance premiums	1,131			1,184		1,353		1,307		1,651
Professional services	4,513			4,295		4,231		4,582		3,599
Amortization of intangible assets	1,205			1,321		1,433		1,594		1,664
Real estate owned expense	44			94		85		75		64
Merger, asset disposition and restructuring expense	2,812			—		632		9		7,238

Other expenses	1,346			2,227		1,422		3,354		3,728
Total noninterest expense	86,285			86,102		86,332		86,191		92,849
Income before income taxes	39,322			45,857		64,105		51,840		44,392
Income tax expense	9,266			10,794		15,138		11,603		9,327
Net income	$	30,056		35,063		48,967		40,237		35,065

Basic earnings per share	$	0.24		0.28		0.38		0.32		0.28
Diluted earnings per share	$	0.24		0.27		0.38		0.32		0.28




Annualized return on average equity	7.65		%	8.86	%	12.58	%	10.61	%	9.00	%
Annualized return on average assets	0.82		%	0.97	%	1.37	%	1.17	%	1.01	%
Annualized return on tangible common equity *	10.02		%	11.92	%	16.66	%	14.31	%	12.27	%

Efficiency ratio **	66.51		%	66.44	%	67.35	%	63.88	%	62.18	%
Annualized noninterest expense to average assets ***	2.25		%	2.33	%	2.35	%	2.45	%	2.42	%

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

** Excludes gain on sale of insurance business, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).

*** Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)


	Year ended December 31,
	2021			2020
Interest income:
Loans receivable	$	390,343		410,907
Mortgage-backed securities	21,463			17,416
Taxable investment securities	2,616			1,985
Tax-free investment securities	2,485			2,060
FHLB dividends	407			981
Interest-earning deposits	1,194			719
Total interest income	418,508			434,068
Interest expense:
Deposits	19,122			35,896
Borrowed funds	8,124			6,444
Total interest expense	27,246			42,340
Net interest income	391,262			391,728
Provision for credit losses	(11,883)			83,975
Net interest income after provision for credit losses	403,145			307,753
Noninterest income:
Gain/(loss) on sale of investments	(176)			236
Gain on sale of loans	—			1,302
Service charges and fees	51,837			55,613
Trust and other financial services income	27,921			20,922
Insurance commission income	3,633			9,132
Gain/(loss) on real estate owned, net	442			(106)
Income from bank-owned life insurance	6,050			5,190
Mortgage banking income	15,892			31,391
Gain on sale of insurance business	25,327			—
Other operating income	11,963			8,585
Total noninterest income	142,889			132,265
Noninterest expense:
Compensation and employee benefits	193,887			178,375
Premises and occupancy costs	31,073			30,622
Office operations	13,769			15,728
Collections expense	1,932			3,275
Processing expenses	55,763			50,050
Marketing expenses	8,237			7,695
Federal deposit insurance premiums	4,975			4,767
Professional services	17,621			12,482
Amortization of intangible assets	5,553			6,856
Real estate owned expense	298			359
Merger, asset disposition and restructuring expense	3,453			20,789

Other expenses	8,349			16,494
Total noninterest expense	344,910			347,492
Income before income taxes	201,124			92,526
Income tax expense	46,801			17,672
Net income	$	154,323		74,854

Basic earnings per share	$	1.22		0.62
Diluted earnings per share	$	1.21		0.62




Annualized return on average equity	9.91		%	4.72	%
Annualized return on average assets	1.08		%	0.58	%
Annualized return on tangible common equity *	12.97		%	6.59	%

Efficiency ratio **	66.02		%	61.04	%
Annualized noninterest expense to average assets ***	2.35		%	2.48	%

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

** Excludes gain on sale of insurance business, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).

*** Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).

Northwest Bancshares, Inc. and Subsidiaries

Asset Quality (Unaudited)

(dollars in thousands)


	December 31, 2021			September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
Nonaccrual loans current:
Residential mortgage loans	$	1,354		2,015		189		164		21
Home equity loans	1,212			1,267		170		268		154

Consumer loans	1,336			1,465		188		225		207
Commercial real estate loans	106,233			111,075		138,820		146,304		20,317
Commercial loans	6,098			17,021		17,545		6,361		16,027
Total nonaccrual loans current	$	116,233		132,843		156,912		153,322		36,726
Nonaccrual loans delinquent 30 days to 59 days:
Residential mortgage loans	$	244		99		68		1,261		647
Home equity loans	223			328		229		340		338

Consumer loans	241			152		230		254		301
Commercial real estate loans	239			205		1,589		965		1,416
Commercial loans	53			102		406		1,538		87
Total nonaccrual loans delinquent 30 days to 59 days	$	1,000		886		2,522		4,358		2,789
Nonaccrual loans delinquent 60 days to 89 days:
Residential mortgage loans	$	1,163		527		207		813		767
Home equity loans	61			142		310		417		190

Consumer loans	292			291		297		649		583
Commercial real estate loans	364			419		198		1,877		714
Commercial loans	218			170		21		7,919		48
Total nonaccrual loans delinquent 60 days to 89 days	$	2,098		1,549		1,033		11,675		2,302
Nonaccrual loans delinquent 90 days or more:
Residential mortgage loans	$	7,641		8,069		10,007		9,333		14,489
Home equity loans	4,262			4,745		6,256		7,044		8,441
Consumer loans	2,069			2,184		2,341		3,625		5,473
Commercial real estate loans	24,063			25,562		23,564		29,737		25,287
Commercial loans	1,105			1,104		4,126		4,860		7,325
Total nonaccrual loans delinquent 90 days or more	$	39,140		41,664		46,294		54,599		61,015
Total nonaccrual loans	$	158,471		176,942		206,761		223,954		102,832
Total nonaccrual loans	$	158,471		176,942		206,761		223,954		102,832
Loans 90 days past due and still accruing	331			386		302		197		585
Nonperforming loans	158,802			177,328		207,063		224,151		103,417
Real estate owned, net	873			809		1,353		1,738		2,232
Nonperforming assets	$	159,675		178,137		208,416		225,889		105,649
Nonaccrual troubled debt restructuring *	$	17,216		12,858		8,951		7,390		10,704
Accruing troubled debt restructuring	13,072			13,664		18,480		20,120		21,431
Total troubled debt restructuring	$	30,288		26,522		27,431		27,510		32,135

Nonperforming loans to total loans	1.59		%	1.74	%	2.01	%	2.16	%	0.98	%
Nonperforming assets to total assets	1.10		%	1.24	%	1.46	%	1.58	%	0.77	%
Allowance for credit losses to total loans	1.02		%	1.08	%	1.14	%	1.20	%	1.27	%
Allowance for total loans excluding PPP loan balances	1.03		%	1.09	%	1.17	%	1.24	%	1.32	%
Allowance for credit losses to nonperforming loans	64.38		%	61.90	%	56.66	%	55.32	%	129.99	%

* Amounts included in nonperforming loans above.

Northwest Bancshares, Inc. and Subsidiaries

Loans by Credit Quality Indicators (Unaudited)

(dollars in thousands)


At December 31, 2021	Pass		Special mention*	Substandard **	Doubtful	Loss	Loans receivable
Personal Banking:
Residential mortgage loans	$	2,978,080	—	16,540	—	—	2,994,620
Home equity loans	1,312,820		—	7,111	—	—	1,319,931
Consumer loans	1,834,478		—	4,270	—	—	1,838,748
Total Personal Banking	6,125,378		—	27,921	—	—	6,153,299
Commercial Banking:
Commercial real estate loans	2,639,676		74,123	301,685	—	—	3,015,484
Commercial loans	808,323		5,730	33,556	—	—	847,609
Total Commercial Banking	3,447,999		79,853	335,241	—	—	3,863,093
Total loans	$	9,573,377	79,853	363,162	—	—	10,016,392
At September 30, 2021
Personal Banking:
Residential mortgage loans	$	2,972,489	—	17,032	—	—	2,989,521
Home equity loans	1,342,479		—	7,869	—	—	1,350,348
Consumer loans	1,812,360		—	4,476	—	—	1,816,836
Total Personal Banking	6,127,328		—	29,377	—	—	6,156,705
Commercial Banking:
Commercial real estate loans	2,799,592		63,034	299,925	—	—	3,162,551
Commercial loans	813,665		10,976	55,071	—	—	879,712
Total Commercial Banking	3,613,257		74,010	354,996	—	—	4,042,263
Total loans	$	9,740,585	74,010	384,373	—	—	10,198,968
At June 30, 2021
Personal Banking:
Residential mortgage loans	$	2,937,418	—	17,133	—	—	2,954,551
Home equity loans	1,367,765		—	8,463	—	—	1,376,228
Consumer loans	1,741,872		—	3,359	—	—	1,745,231
Total Personal Banking	6,047,055		—	28,955	—	—	6,076,010
Commercial Banking:
Commercial real estate loans	2,781,734		73,167	360,288	—	—	3,215,189
Commercial loans	943,665		11,266	63,850	—	—	1,018,781
Total Commercial Banking	3,725,399		84,433	424,138	—	—	4,233,970
Total loans	$	9,772,454	84,433	453,093	—	—	10,309,980
At March 31, 2021
Personal Banking:
Residential mortgage loans	$	2,950,103	—	21,575	—	—	2,971,678
Home equity loans	1,396,757		—	10,767	—	—	1,407,524
Consumer loans	1,547,502		—	6,853	—	—	1,554,355
Total Personal Banking	5,894,362		—	39,195	—	—	5,933,557
Commercial Banking:
Commercial real estate loans	2,801,082		120,345	368,009	—	—	3,289,436
Commercial loans	1,061,884		22,623	60,540	—	—	1,145,047
Total Commercial Banking	3,862,966		142,968	428,549	—	—	4,434,483
Total loans	$	9,757,328	142,968	467,744	—	—	10,368,040
At December 31, 2020
Personal Banking:
Residential mortgage loans	$	3,042,544	—	25,577	—	—	3,068,121
Home equity loans	1,455,474		—	12,262	—	—	1,467,736
Consumer loans	1,499,004		—	8,989	—	—	1,507,993
Total Personal Banking	5,997,022		—	46,828	—	—	6,043,850
Commercial Banking:
Commercial real estate loans	2,852,705		108,021	385,163	—	—	3,345,889
Commercial loans	1,092,498		41,278	57,334	—	—	1,191,110
Total Commercial Banking	3,945,203		149,299	442,497	—	—	4,536,999
Total loans	$	9,942,225	149,299	489,325	—	—	10,580,849

* Includes $14.9 million, $16.7 million, $16.7 million, $26.4 million, and $31.3 million of acquired loans at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

** Includes $81.5 million, $110.4 million, $122.5 million, $143.2 million, and $153.2 million of acquired loans at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

Northwest Bancshares, Inc. and Subsidiaries

Loan Delinquency (Unaudited)

(dollars in thousands)


	December 31, 2021			*		September 30, 2021			*		June 30, 2021			*		March 31, 2021			*		December 31, 2020			*
(Number of loans and dollar amount of loans)
Loans delinquent 30 days to 59 days:
Residential mortgage loans	277	$	20,567	0.7	%	17	$	765	—	%	13	$	606	—	%	248	$	22,236	0.7	%	315	$	28,797	0.9	%
Home equity loans	112	3,153		0.2	%	101	3,351		0.2	%	91	3,677		0.3	%	84	3,334		0.2	%	138	4,763		0.3	%
Consumer loans	589	6,536		0.4	%	576	6,146		0.3	%	532	5,571		0.3	%	535	5,732		0.4	%	1,279	10,574		0.7	%
Commercial real estate loans	17	17,065		0.6	%	19	2,004		0.1	%	13	2,857		0.1	%	33	12,240		0.4	%	43	10,923		0.3	%
Commercial loans	12	193		—	%	10	692		0.1	%	15	686		0.1	%	16	3,032		0.3	%	37	6,405		0.5	%
Total loans delinquent 30 days to 59 days	1,007	$	47,514	0.5	%	723	$	12,958	0.1	%	664	$	13,397	0.1	%	916	$	46,574	0.4	%	1,812	$	61,462	0.6	%

Loans delinquent 60 days to 89 days:
Residential mortgage loans	59	$	5,433	0.2	%	55	$	4,907	0.2	%	58	$	4,051	0.1	%	26	$	2,062	0.1	%	84	$	5,083	0.2	%
Home equity loans	30	949		0.1	%	29	1,024		0.1	%	36	1,502		0.1	%	31	953		0.1	%	47	1,656		0.1	%
Consumer loans	195	2,006		0.1	%	180	1,757		0.1	%	181	1,988		0.1	%	169	1,868		0.1	%	322	2,742		0.2	%
Commercial real estate loans	5	769		—	%	8	1,170		—	%	9	1,335		—	%	14	7,609		0.2	%	11	1,615		—	%
Commercial loans	10	727		0.1	%	2	170		—	%	2	27		—	%	12	8,979		0.8	%	10	864		0.1	%
Total loans delinquent 60 days to 89 days	299	$	9,884	0.1	%	274	$	9,028	0.1	%	286	$	8,903	0.1	%	252	$	21,471	0.2	%	474	$	11,960	0.1	%

Loans delinquent 90 days or more: **
Residential mortgage loans	87	$	7,641	0.3	%	95	$	8,069	0.3	%	115	$	10,007	0.3	%	121	$	9,333	0.3	%	168	$	14,489	0.5	%
Home equity loans	105	4,262		0.3	%	119	4,745		0.4	%	146	6,256		0.5	%	176	7,044		0.5	%	207	8,441		0.6	%
Consumer loans	296	2,400		0.1	%	308	2,568		0.1	%	356	2,643		0.2	%	454	3,822		0.2	%	720	6,058		0.4	%
Commercial real estate loans	52	24,063		0.8	%	59	25,562		0.8	%	83	23,564		0.7	%	113	29,737		0.9	%	119	25,287		0.8	%
Commercial loans	8	1,105		0.1	%	10	1,104		0.1	%	18	4,126		0.4	%	31	4,860		0.4	%	37	7,325		0.6	%
Total loans delinquent 90 days or more	548	$	39,471	0.4	%	591	$	42,048	0.4	%	718	$	46,596	0.5	%	895	$	54,796	0.5	%	1,251	$	61,600	0.6	%

Total loans delinquent	1,854	$	96,869	1.0	%	1,588	$	64,034	0.6	%	1,668	$	68,896	0.7	%	2,063	$	122,841	1.2	%	3,537	$	135,022	1.3	%

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

** Includes purchased credit deteriorated loans of $7.3 million, $8.4 million, $10.3 million, $12.7 million, and $6.6 million at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020.

Northwest Bancshares, Inc. and Subsidiaries

Allowance for Credit Losses (Unaudited)

(dollars in thousands)


	Quarter ended
	December 31, 2021			September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
Beginning balance	$	109,767		117,330		123,997		134,427		140,209


Provision	(1,909)			(4,354)		—		(5,620)		(2,230)
Charge-offs residential mortgage	(784)			(1,263)		(770)		(855)		(407)
Charge-offs home equity	(1,299)			(1,474)		(379)		(228)		(58)
Charge-offs consumer	(2,897)			(2,148)		(2,401)		(2,603)		(2,623)
Charge-offs commercial real estate	(2,652)			(1,581)		(3,964)		(4,626)		(2,770)
Charge-offs commercial	(2,586)			(412)		(1,161)		(54)		(156)
Recoveries	4,601			3,669		2,008		3,556		2,462
Ending balance	$	102,241		109,767		117,330		123,997		134,427
Net charge-offs to average loans, annualized	0.22		%	0.12	%	0.26	%	0.19	%	0.13	%


	Year ended December 31,
	2021			2020
Beginning balance	$	134,427		57,941
CECL adoption	—			10,792
Initial allowance on loans purchased with credit deterioration	—			8,845
Provision	(11,883)			83,975
Charge-offs residential mortgage	(3,672)			(917)
Charge-offs home equity	(3,380)			(608)
Charge-offs consumer	(10,049)			(12,658)
Charge-offs commercial real estate	(12,823)			(4,323)
Charge-offs commercial	(4,213)			(16,212)
Recoveries	13,834			7,592
Ending balance	$	102,241		134,427
Net charge-offs to average loans	0.20		%	0.27	%


	December 31, 2021
	Originated loans			Acquired loans		Total loans
	Balance		Reserve	Balance	Reserve	Balance	Reserve
Residential mortgage loans	$	2,783,459	6,621	211,161	752	2,994,620	7,373
Home equity loans	1,107,202		4,243	212,729	1,057	1,319,931	5,300
Consumer loans	1,692,207		16,775	146,541	1,592	1,838,748	18,367
Personal Banking Loans	5,582,868		27,639	570,431	3,401	6,153,299	31,040
Commercial real estate loans	2,523,280		48,503	492,204	9,521	3,015,484	58,024
Commercial loans	765,877		10,608	81,732	2,569	847,609	13,177
Commercial Banking Loans	3,289,157		59,111	573,936	12,090	3,863,093	71,201
Total Loans	$	8,872,025	86,750	1,144,367	15,491	10,016,392	102,241

Northwest Bancshares, Inc. and Subsidiaries

Average Balance Sheet (Unaudited)

(dollars in thousands)

The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.


	Quarter ended
	December 31, 2021					September 30, 2021					June 30, 2021					March 31, 2021					December 31, 2020
	Average balance		Interest	Avg. yield/ cost (i)		Average balance		Interest	Avg. yield/ cost (i)		Average balance		Interest	Avg. yield/ cost (i)		Average balance		Interest	Avg. yield/ cost (i)		Average balance		Interest	Avg. yield/ cost (i)
Assets:
Interest-earning assets:
Residential mortgage loans	$	2,977,942	25,269	3.39	%	$	2,959,794	25,398	3.43	%	$	2,935,034	25,609	3.49	%	$	3,007,439	26,366	3.51	%	$	3,089,916	27,503	3.56	%
Home equity loans	1,328,553		11,750	3.51	%	1,356,131		11,993	3.51	%	1,380,794		12,232	3.55	%	1,432,009		12,815	3.63	%	1,472,527		13,535	3.66	%
Consumer loans	1,756,620		15,514	3.50	%	1,728,563		16,220	3.72	%	1,589,739		14,555	3.67	%	1,463,284		14,566	4.04	%	1,444,860		15,874	4.37	%
Commercial real estate loans	3,113,924		34,062	4.28	%	3,205,839		35,305	4.31	%	3,257,810		33,349	4.05	%	3,313,892		38,471	4.64	%	3,317,418		37,965	4.48	%
Commercial loans	855,998		9,154	4.18	%	975,603		9,096	3.65	%	1,133,969		9,978	3.48	%	1,189,812		10,566	3.55	%	1,325,047		11,414	3.37	%
Total loans receivable (a) (b) (d)	10,033,037		95,749	3.79	%	10,225,930		98,012	3.80	%	10,297,346		95,723	3.73	%	10,406,436		102,784	4.01	%	10,649,768		106,291	3.97	%
Mortgage-backed securities (c)	1,894,683		5,743	1.21	%	1,832,876		5,840	1.27	%	1,756,227		5,680	1.29	%	1,324,558		4,200	1.27	%	1,166,739		4,551	1.56	%
Investment securities (c) (d)	358,558		1,535	1.71	%	348,619		1,466	1.68	%	364,414		1,466	1.61	%	331,358		1,381	1.67	%	252,898		1,380	2.18	%
FHLB stock, at cost	14,459		82	2.25	%	21,607		71	1.31	%	23,107		138	2.40	%	21,811		116	2.17	%	23,346		192	3.27	%
Other interest-earning deposits	1,168,449		467	0.16	%	905,130		352	0.15	%	810,741		192	0.09	%	801,119		183	0.09	%	632,494		178	0.11	%
Total interest-earning assets	13,469,186		103,576	3.05	%	13,334,162		105,741	3.15	%	13,251,835		103,199	3.12	%	12,885,282		108,664	3.42	%	12,725,245		112,592	3.52	%
Noninterest-earning assets (e)	1,004,905					1,074,122					1,104,924					1,102,477					1,066,609
Total assets	$	14,474,091				$	14,408,284				$	14,356,759				$	13,987,759				$	13,791,854
Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Savings deposits	$	2,282,606	622	0.11	%	$	2,271,365	603	0.11	%	$	2,255,578	590	0.10	%	$	2,118,030	625	0.12	%	$	2,028,155	617	0.12	%
Interest-bearing demand deposits	2,933,466		411	0.06	%	2,890,905		414	0.06	%	2,840,949		407	0.06	%	2,783,429		429	0.06	%	2,699,515		476	0.07	%
Money market deposit accounts	2,618,177		656	0.10	%	2,565,159		637	0.10	%	2,537,629		621	0.10	%	2,497,495		657	0.11	%	2,426,513		960	0.16	%
Time deposits	1,356,513		2,606	0.76	%	1,423,041		2,886	0.80	%	1,493,947		3,155	0.85	%	1,583,525		3,803	0.97	%	1,676,094		4,660	1.11	%
Borrowed funds (f)	135,038		159	0.47	%	131,199		154	0.47	%	131,240		150	0.46	%	143,806		154	0.43	%	229,109		213	0.37	%
Subordinated debt (g)	123,514		1,180	3.82	%	123,513		1,277	4.10	%	123,443		1,264	4.11	%	123,357		1,258	4.14	%	123,283		1,256	4.05	%
Junior subordinated debentures	129,012		625	1.89	%	128,946		625	1.90	%	128,882		636	1.95	%	128,817		642	1.99	%	128,752		659	2.00	%
Total interest-bearing liabilities	9,578,326		6,259	0.26	%	9,534,128		6,596	0.27	%	9,511,668		6,823	0.29	%	9,378,459		7,568	0.33	%	9,311,421		8,841	0.38	%
Noninterest-bearing demand deposits (h)	3,093,518					3,058,819					3,036,202					2,805,206					2,675,986
Noninterest-bearing liabilities	242,620					244,402					247,930					265,667					253,966
Total liabilities	12,914,464					12,837,349					12,795,800					12,449,332					12,241,373
Shareholders’ equity	1,559,627					1,570,935					1,560,959					1,538,427					1,550,481
Total liabilities and shareholders’ equity	$	14,474,091				$	14,408,284				$	14,356,759				$	13,987,759				$	13,791,854
Net interest income/Interest rate spread			97,317	2.79	%			99,145	2.87	%			96,376	2.84	%			101,096	3.09	%			103,751	3.14	%
Net interest-earning assets/Net interest margin	$	3,890,860		2.89	%	$	3,800,034		2.97	%	$	3,740,167		2.91	%	$	3,506,823		3.18	%	$	3,413,824		3.26	%
Ratio of interest-earning assets to interest-bearing liabilities	1.41X					1.40X					1.39X					1.37X					1.37X

(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.

(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.

(g) On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity of September 15, 2030.

(h) Average cost of deposits were 0.14%, 0.15%, 0.16%, 0.19%, and 0.23%, respectively.

(i) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans — 3.77%, 3.79%, 3.71%, 3.99%, and 3.94%, respectively, Investment securities — 1.48%, 1.47%, 1.41%, 1.46%, and 1.78%, respectively, Interest-earning assets — 3.03%, 3.13%, 3.10%, 3.40%, and 3.48%, respectively. GAAP basis net interest rate spreads were 2.77%, 2.86%, 2.82%, 3.07%, and 3.11%, respectively, and GAAP basis net interest margins were 2.87%, 2.95%, 2.89%, 3.16%, and 3.23%, respectively.

Northwest Bancshares, Inc. and Subsidiaries

Average Balance Sheet (Unaudited)

(dollars in thousands)


	Year ended December 31,
	2021					2020
	Average balance		Interest	Avg. yield/ cost (i)		Average balance		Interest	Avg. yield/ cost (i)
Assets:
Interest-earning assets:
Residential mortgage loans	$	2,969,939	102,642	3.46	%	$	3,051,582	113,353	3.71	%
Home equity loans	1,374,038		48,789	3.55	%	1,436,632		55,875	3.89	%
Consumer loans	1,635,613		60,854	3.72	%	1,338,120		58,878	4.40	%
Commercial real estate loans	3,222,272		141,186	4.32	%	3,132,976		140,883	4.42	%
Commercial loans	1,037,758		38,794	3.69	%	1,145,143		44,142	3.79	%
Loans receivable (a) (b) (d)	10,239,620		392,265	3.83	%	10,104,453		413,131	4.09	%
Mortgage-backed securities (c)	1,704,006		21,463	1.26	%	889,744		17,416	1.96	%
Investment securities (c) (d)	350,806		5,848	1.67	%	196,071		4,841	2.47	%
FHLB stock, at cost	20,229		407	2.01	%	21,781		981	4.50	%
Other interest-earning deposits	921,360		1,194	0.13	%	520,666		719	0.14	%
Total interest-earning assets	13,236,021		421,177	3.18	%	11,732,715		437,088	3.73	%
Noninterest-earning assets (e)	1,072,313					1,159,405
Total assets	$	14,308,334				$	12,892,120
Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Savings deposits	$	2,232,454	2,440	0.11	%	$	1,885,517	2,640	0.14	%
Interest-bearing demand deposits	2,862,677		1,660	0.06	%	2,432,427		3,358	0.14	%
Money market deposit accounts	2,554,975		2,570	0.10	%	2,224,904		6,995	0.31	%
Time deposits	1,463,522		12,452	0.85	%	1,687,381		22,903	1.36	%
Borrowed funds (f)	135,285		616	0.46	%	346,442		3,190	0.92	%
Subordinated debt (g)	123,457		4,980	4.03	%	—		—	—	%
Junior subordinated debentures	128,915		2,528	1.93	%	126,683		3,254	2.53	%
Total interest-bearing liabilities	9,501,285		27,246	0.29	%	8,703,354		42,340	0.49	%
Noninterest-bearing demand deposits (h)	2,999,392					2,357,725
Noninterest-bearing liabilities	250,075					246,294
Total liabilities	12,750,752					11,307,373
Shareholders’ equity	1,557,582					1,584,747
Total liabilities and shareholders’ equity	$	14,308,334				$	12,892,120
Net interest income/Interest rate spread			393,931	2.89	%			394,748	3.24	%
Net interest-earning assets/Net interest margin	$	3,734,736		2.98	%	$	3,029,361		3.36	%
Ratio of interest-earning assets to interest-bearing liabilities	1.39X					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.

(d) Interest income on tax-free investment securities and tax-free loans are presented on a 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) On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity of September 15, 2030.

(h) Average cost of deposits were 0.16% and 0.34%, respectively.

(i) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans — 3.81% and 4.07%, respectively, Investment securities — 1.45% and 2.06%, respectively, Interest-earning assets — 3.16% and 3.70%, respectively. GAAP basis net interest rate spreads were 2.88% and 3.21%, respectively, and GAAP basis net interest margins were 2.96% and 3.34%, respectively.