Company: NWBI
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001471265-25-000016
Chunk: 105

Company: Northwest Bancshares, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1B
Chunk 105
---
ing of our loan portfolio through the reduction of nonperforming, criticized and classified assets.

Quarterly, management’s Credit Committee reviews the concentration of credit by industry and customer, lending products and activity, competition and collateral values, as well as economic conditions in general and in each of our market areas. The Credit Committee also reviews and discusses delinquency trends, nonperforming asset amounts and ACL levels and ratios compared to our peer group as well as state and national statistics.

We also consider how the levels of non-accrual loans and historical charge-offs have influenced the required amount of ACL. Nonaccrual loans of $61 million, or 0.55% of total gross loans receivable at December 31, 2024, decreased by $33 million, or 35%, from $94 million, or 0.83% of total gross loans receivable, at December 31, 2023. This decrease was primarily related to current commercial real estate loans that resulted from the loan sales and loans moved to held-for-sale as of year end. As a percentage of average loans, net charge-offs increased to 0.32% for the year ended December 31, 2024 compared to 0.11% due to the loans noted above being written-down to fair value prior to the sale. Total charge-offs related to the loan sales and transfer to loans held-for-sale was a combined $15 million. 

58

Analysis of the Allowance for Credit Losses. The following table sets forth the analysis of the allowance for credit losses for the periods indicated.

 Years ended December 31, 20242023 (Dollars in thousands)Loans receivable$11,180,014 11,406,041 Average loans outstanding11,285,219 11,100,118 Allowance for credit losses   Balance at beginning of period125,243 118,036 ASU 2022-02 Adoption— 426    Provision for credit losses27,679 18,664    Charge-offs:   Residential mortgage loans(845)(1,189)   Home equity loans(1,736)(852)   Vehicle loans(8,809)(6,468)   Consumer loans (5,929)(5,983)   Commercial real estate loans(15,321)(2,298)   Commercial real estate loans - owner occupied— (68)   Commercial loans(