Northwest Bancshares (NWBI) investor relations material

Executive summary

• Achieved record net income of $51 million in Q1 2026, up 16.3% year-over-year, driven by strong C&I loan growth, increased earning assets, fee income, disciplined expense management, and the Penns Woods acquisition.

• Net interest margin expanded to 3.70%, supported by higher securities yields and lower deposit costs.

• Efficiency ratio improved to 59.4% (57.8% adjusted), reflecting strong expense discipline.

• Diluted EPS was $0.34, adjusted EPS $0.35, both up sequentially.

• The Penns Woods merger added $2.2 billion in assets, $1.8 billion in loans, and $1.6 billion in deposits, expanding the branch network and customer base.

Financial highlights

• Net interest income grew 11.5% year-over-year to $142.5 million, with total revenue reaching $175.1 million, and net interest margin at 3.70%.

• Total assets reached $16.9 billion, total loans $13.1 billion, and total deposits $14.2 billion as of March 31, 2026.

• Noninterest income increased by $4 million year-over-year, mainly from higher service charges and investment gains.

• Noninterest expense rose 13% year-over-year due to acquisition-related costs but declined 8.4% sequentially.

• Efficiency ratio improved to 59.4%, adjusted to 57.8%.

Outlook and guidance

• Maintaining FY2026 guidance, expecting low to mid-single-digit loan growth and deposit growth in the low single digits.

• Revenue expected between $710 million and $730 million, with net interest margin in the low 3.70% range.

• Noninterest income forecasted at $125M–$130M, noninterest expense at $420M–$430M, and net charge-offs at 20–27 bps.

• Effective tax rate for 2026 expected between 23.0% and 25.0%.

• Management expects continued integration benefits and further operating cost savings from the Penns Woods acquisition.