Company: NWBI
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001471265-25-000016
Chunk: 205

Company: Northwest Bancshares, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1B
Chunk 205
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 value, less estimated disposition costs, with the fair value being determined by appraisal. Subsequently, foreclosed assets are valued at the lower of the amount recorded at acquisition date or fair value, less estimated disposition costs. We classify real estate owned as nonrecurring Level 3.The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at December 31, 2024: Fair value ($)ValuationtechniquesSignificant unobservable inputsRange (weighted average)Loans individually assessed9,801 Appraisal value (1)Estimated cost to sell10%Mortgage servicing rights20 Discounted cash flowAnnual service cost$88Prepayment rate6.5% to 19.8% (11.3%)Expected life (months)48.9 to 101.3 (69.7)Option adjusted spread724 basis pointsForward yield curve4.65% to 4.49%Real estate owned, net35 Appraisal value (1)Estimated cost to sell10%Loans held for sale7,711 Quoted prices for similar loans in active markets adjusted by an expected pull-through rateEstimated pull-through rate100%

(1)   Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent. 

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

(17)         Regulatory Capital Requirements

 Financial institutions and their holding companies are subject to various regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct, material effect on a company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, financial institutions must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting guidelines. Capital amounts and classifications are also subject to qualitative judgments made by the regulators about components, risk-weighting and other factors.Applicable rules limit an organization’s capital distributions and certain discretionary bonus payments if the organization does not hold a “capital