Company: NWBI
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001471265-25-000016
Chunk: 214

Company: Northwest Bancshares, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1B
Chunk 214
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 Financing activities:   Cash dividends paid on common stock(101,854)(101,669)(101,468)Repurchase of Northwest stock— — — Proceeds from stock options exercised2,453 630 5,173 Net cash used in financing activities(99,401)(101,039)(96,295)Net (decrease)/increase in cash and cash equivalents$(37,060)101,924 46,101 Cash and cash equivalents at beginning of period$276,026 174,102 128,001 Net (decrease)/increase in cash and cash equivalents(37,060)101,924 46,101 Cash and cash equivalents at end of period$238,966 276,026 174,102 

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Table of ContentsNORTHWEST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTSDecember 31, 2024, 2023 and 2022

(23)     Derivative Financial Instruments 

 We are a party to derivative financial instruments in the normal course of business to manage our own exposure to fluctuations in interest rates and to meet the needs of our customers. The primary derivatives that we use are interest rate swaps and caps and foreign exchange contracts, which are entered into with counterparties that meet established credit standards. We believe that the credit risk inherent in all of our derivative contracts is minimal based on our credit standards and the netting and collateral provisions of the interest rate swap agreements.Derivatives Designated as Hedging Instruments As of December 31, 2024, the Company had entered into seven separate pay-fixed interest rate swaps in order to synthetically convert short-term three month FHLB advances to fixed-rate term funding with an aggregate value of $175 million with maturities ranging from three to five years. Our risk management objective and strategy for these interest rate swaps at such time was to reduce our exposure to variability in interest-related cash outflows attributable to changes in the USD-SOFR swap rate, the designated benchmark interest rate being hedged. Based upon our contemporaneous quantitative analysis at the inception of each interest rate swap, we have determined these interest rate swaps qualify for hedge accounting in accordance with ASC 815, Derivatives and Hedging. Our cash flow hedges are recorded within other assets on the Consolidated Statement of Financial Condition at their estimated fair value.As long as the hedge remains highly effective