Company: NWBI
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001471265-25-000016
Chunk: 174

Company: Northwest Bancshares, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1B
Chunk 174
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797 2,448,570 1,785,396 1,190,115 762,754 2,364,506 1,099,359 79,544 11,406,041 For the year ended December 31, 2023, $18.9 million of revolving loans were converted to term loans. 

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

Our exposure to credit loss in the event of nonperformance by the other party to off-balance-sheet financial instruments is represented by the contract amount of the financial instrument. We use the same credit policies in making commitments for off- balance-sheet financial instruments as we do for on-balance-sheet instruments. Financial instruments with off-balance-sheet risk as of December 31, 2024 and 2023 are presented in the following table (in thousands):Years ended December 31,20242023Loans commitments$190,094 198,166 Undisbursed lines of credit 1,258,492 1,185,709 Standby letters of credit57,923 46,900 Total$1,506,509 1,430,775 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral we obtain upon extension of credit is based on management’s credit evaluation of the counterparty. Collateral held varies but generally may include cash, marketable securities, real estate and other property.Outstanding loan commitments at December 31, 2024 for fixed rate loans were $52 million. The interest rates on these commitments approximate market rates at December 31, 2024. Outstanding loan commitments at December 31, 2024 for adjustable rate loans were $139 million. The fair values of these commitments are affected by fluctuations in market rates of interest.We issue standby letters of credit in the normal course of business. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform