Company: NWBI
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001471265-25-000016
Chunk: 350

Company: Northwest Bancshares, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 8
Chunk 350
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 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 according to the terms of the underlying contract with the third party. We are required to perform under a standby letter of credit when drawn upon by the guaranteed third party in the case of nonperformance by our customer. The credit risk associated with standby letters of credit is essentially the same as that involved in extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management’s credit assessment of the customer. As of December 31, 2024, the maximum potential amount of future payments we could be required to make under these standby letters of credit is $58 million, of which $42 million is fully collateralized. A liability (which represents deferred income) of $1 million and $1 million has been recognized for the obligations as of December 31, 2024 and 2023, respectively, and there are no recourse provisions that would enable us to recover any amounts from third parties.In addition, we maintain a $20 million credit limit with a correspondent bank for private label credit card facilities for certain existing commercial clients of the