Company: NWBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001471265-25-000137
Chunk: 35

Company: Northwest Bancshares, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 35
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 20353-month  SOFR plus 1.70%5,000 3,943 3,891 Universal Preferred Trust (1)October 7, 20353-month  SOFR plus 1.69%5,000 3,935 3,883 $128,875 129,964 129,834 (1) Net of discounts due to the fair value adjustment made at the time of acquisition.Cash distributions on the trust securities are made on a quarterly basis to the extent interest on the debentures is received by the Trusts. We have the right to defer payment of interest on the subordinated debentures at any time, or from time-to-time, for periods not exceeding five years. If interest payments on the subordinated debentures are deferred, the distributions on the trust securities also are deferred. To date there have been no interest deferrals. Interest on the subordinated debentures and distributions on the trust securities is cumulative. Our obligation constitutes a full, irrevocable, and unconditional guarantee on a subordinated basis of the obligations of the trust under the preferred securities.  For the six months ended June 30, 2025 and June 30, 2024 total interest expense paid on trust preferred securities was $4 million and $5 million, respectively. The Trusts must redeem the preferred securities when the debentures are paid at maturity or upon an earlier redemption of the debentures to the extent the debentures are redeemed. All or part of the debentures may be redeemed at any time. Also, the debentures may be redeemed at any time if existing laws or regulations, or the interpretation or application of these laws or regulations, change causing: •the interest on the debentures to no longer be deductible by the Company for federal income tax purposes;•the trusts to become subject to federal income tax or to certain other taxes or governmental charges;•the trusts to register as an investment company; or•the preferred securities to no longer qualify as Tier 1 capital. 

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We may, at any time, dissolve any of the Trusts and distribute the debentures to the trust security holders, subject to receipt of any required regulatory approvals.

(6)    Guarantees

 We issue standby letters of credit in the normal course of business. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer