Company: NWBI
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001471265-25-000016
Chunk: 271

Company: Northwest Bancshares, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 271
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14 — (12)(146)(158)Junior subordinated debentures232 19 251 4,667 18 4,685 Total interest-bearing liabilities65,710 15,669 81,379 84,579 39,543 124,122 Net change in net interest income$6,558 (6,340)218 49,495 (34,100)15,395 

Provision for Credit Losses 

20202021202220232024Provision for credit losses - loans (in thousands)$83,975 (11,883)17,860 18,664 27,679 Provision/(benefit) for credit losses - unfunded commitments (in thousands)3,139 (3,905)10,455 4,210 (3,174)Annualized net charge-offs to average loans0.27 %0.20 %0.02 %0.11 %0.32 %

The provision for credit losses increased by $2 million, or 7.1%, compared to the year ended December 31, 2023. This increase included a $9 million increase in the provision for credit losses - loans, which was partly offset by a $7 million decrease in the provision for credit losses - unfunded commitments.

The changes in the provision noted above is driven by growth within our commercial lending portfolio and changes in the economic forecasts coupled with a decline in our reserves for unfunded commitments in the current period. This decline is based on the timing of origination and funding of commercial construction loans and lines of credit.

During the year ended quarter December 31, 2024 the Company took several steps to de-risk our loan portfolio and reduce our levels of nonperforming, criticized and classified loans by completing two loan pool sales and transferring certain loans within our Long Term Healthcare portfolio into held for sale as of December 31, 2024. As a result we saw an elevated level of charge-offs during the year as the loans noted above were written-down to fair market value prior to sale. Total charge-offs related to the loan sales and transfer to loans held-for-sale was a combined $15 million. After completing these steps the Company saw an increase in classified loans to $272 million, or 2.44% of total loans, at December 31, 2024  from $219 million, or 1.91% of total loans, at December 31,