Company: NWBI
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001471265-25-000016
Chunk: 26

Company: Northwest Bancshares, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 26
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 and subordinated debt. Also included in Tier 2 capital is the allowance for credit losses limited to a maximum of 1.25% of risk-weighted assets and, for institutions that have exercised an opt-out election regarding the treatment of Accumulated Other Comprehensive Income, up to 45% of net unrealized gains on available-for-sale equity securities with readily determinable fair market values. Calculation of all types of regulatory capital is subject to deductions and adjustments specified in the regulations. Northwest Bank exercised this opt-out election during the year ended December 31, 2024. 

Each of the Company and Northwest Bank must hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements in order to avoid limitations on capital distributions, including dividends, and certain discretionary bonus payments to management. As of December 31, 2024, Northwest Bank’s capital exceeded all applicable regulatory requirements and it had an appropriate capital conservation buffer.  

The following table presents the minimum regulatory capital ratios, minimum ratio plus capital conservation buffer and well-capitalized minimums that the Company and Northwest Bank must satisfy.

 Minimum regulatory capital ratioMinimum ratio + capital conservation bufferWell capitalized minimums (1)Actual CET1 risk based capital ratioNorthwest Bancshares, Inc.4.50 %7.00 %N/A12.63 %Northwest Bank4.50 %7.00 %6.50 %12.63 %Tier 1 risk based capital ratioNorthwest Bancshares, Inc.6.00 %8.50 %6.00 %13.82 %Northwest Bank6.00 %8.50 %8.00 %12.63 %Total risk based capital ratioNorthwest Bancshares, Inc.8.00 %10.50 %10.00 %16.08 %Northwest Bank8.00 %10.50 %10.00 %13.81 %Tier 1 leverage ratioNorthwest Bancshares, Inc.4.00 %N/AN/A10.39 %Northwest Bank4.00 %N/A5.00 %9.50 %

(1)    Reflects the well-capitalized standard applicable to Northwest Bank and the well-capitalized standard applicable to the Company under the Federal Reserve Board’s Regulation Y. 

Any institution that fails