Company: NWBI
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001471265-25-000161
Chunk: 85

Company: Northwest Bancshares, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 2
Chunk 85
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ordinated debentures(1,061)13 (1,048)Total interest-bearing liabilities(13,627)141 (13,486)Net change in net interest income (FTE)$43,273 18,643 61,916 

Provision for Credit Losses 

3Q244Q241Q252Q253Q25Provision for credit losses - loans (in thousands)$5,727 15,549 8,256 11,456 31,394 Provision/(benefit) for credit losses - unfunded commitments (in thousands)(852)1,016 (345)(2,712)(189)Annualized net charge-offs to average loans0.18 %0.87 %0.08 %0.18 %0.29 %

The provision for credit losses increased by $26 million from the quarter ended September 30, 2024. This increase included a $26 million increase in the provision for credit losses - loans, as well as a $0.7 million increase in the provision for credit losses - unfunded commitments.  This increase is due to the initial Day 1 provision from the Penns Woods acquisition of $20.6 million.  Excluding the Day 1 provision for credit losses from the acquisition, the provision for credit losses for the quarter ended September 30, 2025 was $10.5 million, which increased compared to the prior year and the prior quarter primarily due to an increase in net charge offs coupled with an increase due to individually assessed loans. 

The increase in our provision for unfunded commitments in the current period is due to the Penns Woods acquisition offset by a decline based on the timing of organic origination and funding of commercial construction loans and lines of credit.  

Additionally, the Company saw an increase in classified loans to $527 million, or 4.07% of total loans, at September 30, 2025 from $320 million, or 2.83% of total loans, at September 30, 2024 and $518 million, or 4.57% of total loans, at June 30, 2025.  This increase was driven by changes in our commercial real estate portfolio which increased $141 million from the prior year. The increase

from the prior quarter was primarily due to classified loans acquired in the Penns Woods acquisition which were partially offset by improvements in our legacy loan portfolio.

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