Company: NWBI
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001471265-25-000161
Chunk: 87

Company: Northwest Bancshares, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 2
Chunk 87
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 in compensation and employee benefits expense of $7 million, or 12%, to $63 million for the quarter ended 

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Table of Contents

September 30, 2025 driven primarily by an increase in core compensation and benefits expense due to the addition of Penns Woods employees coupled with an increase in performance based incentive compensation expense. Additionally, there was a $1 million in amortization of intangible expense related to the acquisition.

The increase from the nine months ended September 30, 2024 was driven by an increase in merger and restructuring expenses of $36 million, driven by the Penns Woods acquisition and an increase in compensation and employee benefits expense of $12 million or 7% driven primarily by the same factors discussed above. 

Income Taxes

The provision for income taxes decreased by $10 million from the quarter ended September 30, 2024 due to lower income before taxes caused by the large acquisition expense in during the third quarter. The provision for income taxes increased by $4 million from the nine months ended September 30, 2024 primarily due to higher income before income taxes from the loss on sale in investments that occurred in the second quarter of 2024.. 

The provision for income taxes is primarily driven by changes in our current period income before taxes. We anticipate our effective tax rate to be between 22.0% and 24.0% for the year ending December 31, 2025. 

GAAP to Non-GAAP Reconciliations 

The following non-GAAP financial measures used by the Company provide information useful to investors in understanding our operating performance and trends, and facilitate comparisons with the performance of our peers.  The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s Consolidated Statements of Income. 

Quarter endedSeptember 30,2025June 30,2025March 31,2025December 31,2024September 30,2024Net interest income fully tax equivalent (FTE)Net interest income (GAAP)$135,974 119,444 127,818 114,197 111,302 Plus:  Taxable-equivalent adjustment970 878 867 851 914 Net interest income FTE136,944 120,322 128,685 115,048 112,216  

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