Company: NWBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001471265-25-000137
Chunk: 86

Company: Northwest Bancshares, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 3
Chunk 86
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, the estimated net income may not decrease by more than 10%, 20% and 30%, respectively, within a one-year period.

Market value of equity simulation. The market value of equity is the present value of assets and liabilities. Given a parallel shift of 100 bps, 200 bps and 300 bps in interest rates, the market value of equity may not decrease by more than 10%, 20% and 25%, respectively, from the computed economic value at current interest rate levels.

The following table illustrates the simulated impact of a 100 bps, 200 bps or 300 bps upward or a 100 bps, 200 bps or 300 bps downward movement in interest rates on net income, return on average equity, earnings per share and market value of equity. This analysis was prepared assuming that interest-earning asset and interest-bearing liability levels at June 30, 2025 remain constant. The impact of the rate movements was computed by simulating the effect of an immediate and sustained shift in interest rates over a twelve-month period from June 30, 2025 levels.

 IncreaseDecreaseParallel shift in interest rates over the next 12 months100 bps200 bps300 bps100 bps200 bps300 bpsProjected percentage increase/(decrease) in net interest income(1.1)%(2.6)%(4.1)%(0.5%)(4.9%)(6.9%)Projected percentage increase/(decrease) in net income(2.5)%(5.7)%(9.1)%(1.3%)(11.1%)(15.7%)Projected increase/(decrease) in return on average equity(2.3)%(5.4)%(8.7)%(1.2%)(10.5%)(15.0%)Projected increase/(decrease) in earnings per share$(0.04)$(0.08)$(0.12)$(0.02)$(0.15)$(0.21)Projected percentage increase/(decrease) in market value of equity(4.4%)(9.2%)(13.9%)2.4%1.2%1.1%

The figures included in the table above represent projections that were computed based upon certain assumptions including prepayment rates and decay rates. These assumptions are inherently uncertain and, as a result