# EDGAR Filing Document

**Accession Number:** 0001471265
**File Stem:** 0001193125-23-065468
**Filing Date:** 2023-3
**Character Count:** 43184
**Document Hash:** e556bc48535611545f0573db68350fd5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-065468.hdr.sgml**: 20230309

**ACCESSION NUMBER**: 0001193125-23-065468

**CONFORMED SUBMISSION TYPE**: ARS

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230309

**DATE AS OF CHANGE**: 20230309

**EFFECTIVENESS DATE**: 20230309

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Northwest Bancshares, Inc.
- **CENTRAL INDEX KEY:** 0001471265
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** ARS
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34582
- **FILM NUMBER:** 23718388

**BUSINESS ADDRESS:**
- **STREET 1:** 100 LIBERTY STREET
- **CITY:** WARREN
- **STATE:** PA
- **ZIP:** 16365
- **BUSINESS PHONE:** (814) 726-2140

**MAIL ADDRESS:**
- **STREET 1:** 100 LIBERTY STREET
- **CITY:** WARREN
- **STATE:** PA
- **ZIP:** 16365

### Attached PDF Documents

**Attachment 1:** `d96133dars.pdf`

![img-0.jpeg](img-0.jpeg)

# THE NEXT WAY FORWARD

2022
Summary Annual Report

Northwest
Bancshares, Inc.

# MESSAGE TO SHAREHOLDERS

We are on a journey to build the Northwest Bank of the future-an evolution that continues to be guided by the overarching principles of progress and transformation defined in our five-year strategic plan. In 2022, we made great strides as we accelerated and diversified our key initiatives to meet the changing digital preferences of our customers and capture additional business development opportunities as part of our progression to a high-performing commercial bank.

When I reflect on all we accomplished in the past year, I would be remiss to not recognize the many ways our team members go above and beyond to answer the call for our company, customers and the communities we serve. They continue to carry out our mission and build upon the legacy of strength and stability that has always been a pillar of our organization. Our success will continue to be driven by the passion of our team, who, as Champions of Opportunity, are firmly committed to our vision as we move forward and expand our franchise.

![img-1.jpeg](img-1.jpeg)

## Improving upon core performance

While successfully navigating extraordinary change in 2022, including the loss of our Chairman, President and CEO Ron Seiffert, the volatile interest rate environment and the reduction in stimulus deposits, we continued to improve upon our core operating performance. Core or non-GAAP net income of $137.7 million, or $1.08 per diluted share, resulted in return on average equity (ROAE) of 9.07% and return on average assets (ROAA) of 0.97%, with an efficiency ratio of 62.1%.

2

## Accelerating our commitment to helping local economies

At Northwest, we are committed to improving our local economies by helping local businesses succeed. In 2022, we expanded our business banking team, who are instrumental in developing and deepening relationships with small businesses in our communities. Notably, we established an SBA lending vertical, including the addition of an experienced SBA credit and sales leadership team. This new focus broadens our small business loan offering and provides strategic benefits, including expanded product and relationship opportunities.

In support, through charitable donations, educational improvement tax credits (EITC) and sponsorships, we also infused more than three million dollars back into our local communities. These contributions, coupled with thousands of employee volunteer hours, allow us to improve the quality of life for area residents and businesses, a core element of our bank culture.

## Offering more sophisticated solutions to commercial customers

Commercial relationships continue to grow as commercial loans and deposits have increased steadily across multiple geographies and industries. To support commercial and small business customers with their treasury management needs,

we recently launched a new online banking platform, Northwest Treasury Pro, which offers a comprehensive mix of features and functionality to help companies manage their cash flow. This new solution significantly improves customer experience and better positions Northwest as a commercial partner, providing all digital business banking capabilities within a single platform.

In addition, we recently added a Commercial Finance Group focused on business aviation, long-haul trucking, marine financing and general equipment loans to capture opportunities in the middle market and large corporate finance spaces. This new capability broadens our commercial loan offering and has numerous strategic benefits, including industry and geographic expansion, additional fee income and expanded relationship opportunities.

## Enabling the digital experience

Over the past several years, we have been focused on leveraging technology to elevate customer experience and expand our footprint. Incrementally, we have been digitally transforming our bank by launching innovative technology, including a new online and mobile banking platform with advanced functionality, streamlined deposit and loan account-opening experiences and an enhanced website-northwest.com. As a result of these investments, we have enabled new ways to capture business and expand relationships in an easy, secure and cost-effective way through an end-to-end digital experience.

3

![img-2.jpeg](img-2.jpeg)

## Focusing on Environmental, Social and Governance (ESG) and Diversity, Equity and Inclusion (DEI)

To support our mission of establishing a workplace where all employees can contribute, innovate and thrive, we launched the Northwest Inclusion Council in 2020 to promote diversity, equity and inclusion across the company. Recently, we appointed a new leader to oversee the Inclusion Council and drive DEI efforts throughout our organization. This team has made considerable progress, most notably launching several Employee Resource Groups (ERGs) in 2022, which are voluntary, employee-led groups for open conversation and collaboration across the company, to further support employee engagement and raise cultural awareness.

## Enhancing efficiency through branch optimization

Because customers are choosing more convenient ways to interact with our bank, branch traffic and transaction volumes have declined while utilization of our digital

channels, like online and mobile banking, has dramatically increased. This ongoing shift in customer behavior and preferences led us to evaluate the efficiency of our retail network and consolidate over 100 branches in the past six years. In many cases, the consolidated branches were in close proximity to another Northwest location, which has allowed us to retain a high percentage of impacted customers.

## Building on our brand

In 2022, we launched a new brand campaign, Northwest Bank “For what’s next,”$^{14}$ which reinforces our focus on offering solutions and expertise to help customers proactively plan for the future. The campaign can be seen across all our markets through a variety of advertising channels, including digital and social media, broadcast and connected TV and billboards.

We also launched a new marketing optimization and personalization engine, which allows us to harness the power of data, artificial intelligence and machine learning to deliver the most relevant offering to our customers through tailored communications.

## Broadening our talent

To achieve the goals set forth in our strategic plan, we continue to recruit highly capable team members at the senior and middle management levels. These accomplished professionals provide depth of experience to augment our existing talent pool and enhance our ability to succeed across all lines of business and geographies.

Taking advantage of its central location within our current four-state footprint and

4

the tremendous growth seen in central Ohio, we established our holding company (Northwest Bancshares, Inc.) headquarters in Columbus, Ohio to further support our hiring efforts and position the Northwest brand as we develop new business and expand our western boundaries.

## Continuing the momentum

2022 was a pivotal year for our company, highlighted by continued improvement of our core operating performance, notable enhancements in our digital capabilities and customer experience, significant investment and expansion in small business and commercial banking, heightened support for our local communities and dedicated efforts to create a more diverse and inclusive working environment.

As we continue on our journey to transform the bank, in 2023 we will build off this momentum, remaining committed to our strategic direction and our quest to evolve into a high-performing commercial bank. I am excited about our progress and to see what's next for Northwest Bank.

On behalf of our Board of Directors and employees, thank you for your continued support, trust and confidence.

Sincerely,

President and CEO

I would like to pay tribute to Ronald J. Seiffert-our former Chairman, President and CEO-who passed away unexpectedly in May 2022.

Ron was an extraordinary leader and, more importantly, a close friend. We all miss his daily presence and will honor his vision of sustained growth and independence by building on the strategic direction he set for Northwest Bank.

![img-3.jpeg](img-3.jpeg)

Columbus Grand Opening: Ron Seiffert with Lt. General Michael Ferriter, U.S. Army (Retired), CEO of the National Veterans Memorial and Museum

5

# CORPORATE PROFILE

## Northwest Bancshares, Inc.

Northwest Bancshares, Inc. is a federally chartered bank holding company that owns and operates Northwest Bank, a Pennsylvania-chartered savings bank headquartered in Warren, Pennsylvania.

As of December 31, 2022, we held assets of $14.1 billion and had 142 full-service community banking locations, eight free-

standing drive-through locations and 202 ATMs across Pennsylvania, New York, Ohio and Indiana. Since 1896, we have helped our communities create what's next by meeting the diverse financial needs of individuals, families, organizations and businesses seeking to bank, borrow, invest and plan their futures.

Our primary business involves gathering funds from deposits and borrowings and investing them in loans and investment securities.

![img-4.jpeg](img-4.jpeg)

- Checking Accounts 46%
- Money Market Accounts 20%
- Savings Accounts 18%
- Certificates of Deposit 8%
- Borrowed Funds 6%
- Subordinated Debt 1%
- Junior Subordinated Debentures 1%

![img-5.jpeg](img-5.jpeg)

- Mortgage Loans 27%
- Commercial Real Estate 21%
- Cash and Investments 17%
- Consumer Loans 16%
- Home Equity Loans 10%
- Commercial Loans 9%

6

Northwest's sources of funds and mix of loans and investments have changed considerably over the years as we have strived to transform from a thrift to a commercial bank.

### Loan Growth and Mix in billions of dollars

![img-6.jpeg](img-6.jpeg)

### Deposit Growth and Mix in billions of dollars

![img-7.jpeg](img-7.jpeg)

7

# FINANCIAL HIGHLIGHTS

## Northwest Bancshares, Inc. and Subsidiaries

In thousands, except per share and other data

| AT YEAR END DECEMBER 31, | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Total assets | $14,113,324 | $14,501,508 | $13,806,268 |
| Loans receivable, net | 10,802,416 | 9,914,151 | 10,446,422 |
| Deposits | 11,464,548 | 12,301,165 | 11,599,233 |
| Shareholders' equity | 1,491,486 | 1,583,571 | 1,538,703 |
| Book value per share | 11.74 | 12.51 | 12.11 |
| Tangible book value per share | 8.67 | 9.40 | 8.95 |
| Closing market price per share | 13.98 | 14.16 | 12.74 |
| FOR THE YEAR ENDED DECEMBER 31, |  |  |  |
| Net interest income | $420,681 | $391,262 | $391,728 |
| Net income | 133,666 | 154,323 | 74,854 |
| Non-GAAP net income | 137,710 | 138,574 | 131,422 |
| Diluted earnings per share | 1.05 | 1.21 | 0.62 |
| Non-GAAP earnings per share | 1.08 | 1.08 | 1.09 |
| Dividends per share | 0.80 | 0.79 | 0.76 |
| KEY FINANCIAL RATIOS FOR THE YEAR ENDED DECEMBER 31, |  |  |  |
| Return on average shareholders' equity | 8.80% | 9.91% | 4.72% |
| Non-GAAP return on average shareholders' equity | 9.07% | 8.90% | 8.29% |
| Return on average assets | 0.94% | 1.08% | 0.58% |
| Non-GAAP return on average assets | 0.97% | 0.97% | 1.02% |
| Tangible common equity to assets | 8.03% | 8.43% | 8.48% |
| Average interest rate spread | 3.11% | 2.89% | 3.24% |
| Nonperforming assets to total assets at end of period | 0.58% | 1.10% | 0.77% |
| Net charge-offs as a percentage of average loans outstanding | 0.02% | 0.20% | 0.27% |
| Allowance for credit losses to nonperforming loans at end of period | 143.98% | 64.38% | 129.99% |
| Allowance for credit losses as a percentage of loans receivable | 1.08% | 1.02% | 1.27% |
| OTHER DATA AT DECEMBER 31, |  |  |  |
| Full-service community banking locations | 142 | 162 | 162 |
| Average deposits per full-service location 1 | $80,736 | $75,933 | $71,600 |
| Full-time equivalent employees | 2,160 | 2,332 | 2,421 |
| Registered shareholders 2 | 11,242 | 10,182 | 12,442 |

$^{1}$In thousands.

$^{2}$Excludes shareholders who own their stock in 'street name.'

8

# GROWTH AND PERFORMANCE

## Assets

Total assets decreased $388.2 million over prior year primarily due to decreases in marketable securities and total cash and cash equivalents, as a result of decreases in customer deposits.

Assets in billions of dollars

![img-8.jpeg](img-8.jpeg)

## Net Income

Net income decreased $20.7 million over prior year, resulting primarily from an increase in provision for credit losses primarily as a result of the provision credit in 2021 related to the release of reserves built up during COVID-19.

Annual Net Income in millions of dollars

![img-9.jpeg](img-9.jpeg)

## Earnings per Share

Diluted Earnings per Share in dollars

![img-10.jpeg](img-10.jpeg)

### Common Stock Information

| 2022 | High | Low | Div |
| --- | --- | --- | --- |
| 1Q | $14.46 | $13.28 | $0.20 |
| 2Q | $13.02 | $12.06 | $0.20 |
| 3Q | $14.81 | $13.50 | $0.20 |
| 4Q | $15.29 | $13.60 | $0.20 |

| 2021 | High | Low | Div |
| --- | --- | --- | --- |
| 1Q | $15.48 | $12.42 | $0.19 |
| 2Q | $14.76 | $13.45 | $0.20 |
| 3Q | $13.88 | $12.37 | $0.20 |
| 4Q | $14.50 | $13.11 | $0.20 |

### Stock Price Performance Since IPO

in total return % (Source: S&P Capital IQ)

![img-11.jpeg](img-11.jpeg)

9

Northwest.com/esg

# HERE TO MAKE THE DIFFERENCE

## Corporate Responsibility

For more than 125 years, doing what's right for the people, communities and world around us has been at the heart of who we are. Here you'll find how we meet Environmental, Social and Governance (ESG) standards and uphold responsible business principles to fulfill our shared purpose to create opportunities and empower one another-all to pave the way for a better tomorrow.

## Governance and Ethics

We demonstrate our commitment to integrity, transparency and trust in many ways, including through our strong internal audit structure, Board-driven risk management framework and required employee and Board training and testing to ensure ethics at every level.

## Empowering Customers

It's our mission to empower people with the knowledge and tools they need to improve their lives. Online, we provide a resource center filled with financial articles and calculators. In our communities, we regularly partner with local organizations to deliver financial wellness training in person.

![img-12.jpeg](img-12.jpeg)

As an example, we partnered with these organizations in Muncie, Indiana, in 2022. Scan this code to learn more.

## Investing in Our Team

At Northwest, we have a shared passion for helping others-most importantly, our employees, who receive both professional development and industry training throughout the year and have the opportunity to participate in virtual and in-person mentorship programs. We also know that job satisfaction includes striking a healthy balance between work and personal life, so we offer a myriad of family-focused benefits, generous time off and a flexible work policy.

In 2022, Northwest Bank earned a Home Possible RISE Award from Freddie Mac, which helps low-income homebuyers secure mortgages.

## Committed to Inclusion

At Northwest, we face each day as one, embracing our unique perspectives to spark creative solutions. In recent years, we established our Inclusion Council comprised of Northwest employees from all walks of life to develop strategies centered around training, communication, data and hiring practices to support our commitment to promoting diversity and inclusion. In 2022, the group's most notable accomplishment was the launch of employee resource groups focused on advancing our community of color, women and young professionals.

## Strengthening Communities

We're committed to making a difference in the places where we live and work, and our teams step up to the plate, dedicating time and resources toward making a difference across our footprint. On the next page, you'll see how we've invested in communities through community donations and lending, along with an example of how our investment is making a difference in Columbus.

## Focused on Environmental Sustainability

At Northwest, we embrace a spirit of innovation and are committed to continuously evolving our processes to pave a better future. As part of this effort, we look for ways we can minimize our impact on the environment, save energy and reduce our dependence on precious natural resources. Through internal education, digital adoption and our flexible work policy, printer use declined 61% in corporate offices and 41% in branches in recent years. Additionally, we have invested heavily in more environmentally friendly ways of lighting, heating and cooling our buildings, further reducing our impact on the environment.

10

# WE ARE COMMITTED TO COMMUNITY DEVELOPMENT

## Community Donations

The Northwest Charitable Foundation was established to provide financial support to nonprofit organizations promoting affordable housing, education, health and human services, quality of life, youth development, the arts, economic development and programs that benefit the disadvantaged in areas where Northwest Bank conducts business.

### Annual Community Donations$^{1}$

in thousands of dollars

![img-0.jpeg](img-0.jpeg)

## Community Lending

We're committed to nurturing dreams of prosperity-from home ownership to entrepreneurship-for those who need it most.

### Annual Community Lending

in thousands of dollars

![img-1.jpeg](img-1.jpeg)

## In the Spotlight: National Veterans Memorial and Museum

The National Veterans Memorial and Museum (NVMM) in Columbus, Ohio is the first and only museum that shares the individual stories of *all* veterans from all service branches and eras of time in their own words-during military service and after. The NVMM honors the service and sacrifice of our veterans and their families through events and ceremonies. Their programs connect veterans to communities with job opportunities and inspire everyone to serve others in their communities. Last, but not least, they educate K-12 and beyond on what it means to serve, veteran contributions through history and the historical impact of those who heeded the call to defend our freedoms and way of life.

Northwest proudly began a formal partnership with NVMM in 2022, pledging $100,000 to form 'National Veterans Memorial and Museum Connects.' The program creates greater access to the NVMM for low- to moderate-income individuals and families, opening up a wide range of in-person and virtual programming to meet the needs of the diverse central Ohio community.

'We truly appreciate Northwest Bank's generous support for programs impacting our veterans and the K-12 community,' says Lt. General Michael Ferriter, U.S. Army (retired), president and CEO of the National Veterans Memorial and Museum. 'We look forward to working together to ensure museum access for all through Northwest's sponsorship of NVMM Connects.'

More than 4,791 visitors attended the museum for free or through significantly reduced ticket prices through the National Veterans Memorial and Museum Connects program in 2022.

Scan this code to learn more about the NVMM.

![img-2.jpeg](img-2.jpeg)

$^{1}$Does not include donations made at the local level.

$^{2}$In response to the COVID-19 pandemic, Northwest Bank participated in the SBA Paycheck Protection Program (PPP) designed to provide a direct incentive for small businesses to keep their workers on the payroll. NW originated approximately $723 million in PPP loans in 2020 and 2021 not included in the totals above.

11

# MARKET COVERAGE

Proudly serving people and businesses across four states.

![img-3.jpeg](img-3.jpeg)

![img-4.jpeg](img-4.jpeg)

![img-5.jpeg](img-5.jpeg)

![img-6.jpeg](img-6.jpeg)

![img-7.jpeg](img-7.jpeg)

2022 was an award-winning year for Northwest Bank as we were ranked among America's Top 100 Midsize Employers and Top 25 Best Banks by Forbes, as well as Top 500 Global Banking Brands by The Banker.

12

# BUSINESS SOLUTIONS

Our wealth is built on helping others succeed.

> At Northwest, we believe there are opportunities all around us, and we're passionate about helping businesses find them.

By taking the time to understand the unique needs of each company and identifying customized solutions, our local experts empower executives to reach their financial goals through treasury management, financing, investment management, employee benefits and more.

![img-8.jpeg](img-8.jpeg)

13

# BUSINESS SOLUTIONS

## Loans and Deposits

Commercial relationships continue to be a growing segment of our business as commercial loans and deposits have grown steadily due to strategic positioning for growth opportunities. While yields and costs have declined due to the changing interest rate environment, our business deposit mix continues to grow as we focus on offering a holistic, essential-partner value proposition.

### Commercial Loans

in billions of dollars

![img-9.jpeg](img-9.jpeg)

### Business Deposit Balances

in billions of dollars

![img-10.jpeg](img-10.jpeg)

### Commercial Loan Yields

![img-11.jpeg](img-11.jpeg)

### Cost of Business Deposits

![img-12.jpeg](img-12.jpeg)

### Commercial Loan Losses

as a % of commercial loans

![img-13.jpeg](img-13.jpeg)

### Business Deposit Mix

![img-14.jpeg](img-14.jpeg)

14

## Trust Services

Business trust revenue has remained strong over the past year as we continue to diversify our mix of both revenue and assets under management.

### Business Trust Assets Under Management

in billions of dollars

![img-15.jpeg](img-15.jpeg)

### Business Trust Asset Mix

as a % of total business assets under management

![img-16.jpeg](img-16.jpeg)

### Business Trust Revenue

in millions of dollars

![img-17.jpeg](img-17.jpeg)

### Business Trust Revenue Mix

as a % of total business revenue

![img-18.jpeg](img-18.jpeg)

Business investments, employee retirement plans and succession plans play an important role in the health of a business. **That’s where our trust officers shine.**

15

# DIGITAL TRANSFORMATION

## Improving customer experience-growing the bank.

As more people choose online and mobile banking, we're focused on continuously expanding and enhancing our digital solutions to meet personal and business customers where they are through an easy, convenient and secure digital banking experience. Over the past several years, we've consistently added new digital building blocks, enabling the next phase of our transformation and driving growth for the bank, including:

- New apps and tools for mobile payments, credit scores, debit card management and more
- An accelerated account-opening experience that lets customers open a new account in under five minutes
- A simple, fast and secure digital loan application where a customer can apply, receive an instant loan offer and accept and close within minutes
- A new sophisticated, fast and secure business online banking platform designed to support commercial customers with advanced treasury needs

![img-19.jpeg](img-19.jpeg)

To learn more about our approach to customer education, please visit www.northwest.com/security-center/

To help us maximize the growth opportunities made possible by our digital transformation, in 2022 we launched a new marketing optimization and personalization engine. This platform harnesses the power of our customer data, artificial intelligence and machine learning to send existing customers relevant offers to deepen relationships. Leveraging our digital capabilities, we're seeking to obtain and grow new customer relationships, especially in markets where we don't have a branch presence, through a fully-digital shopping and buying experience.

## Keeping our customers safe

As we continue to invest in our digital transformation, data security, account security and customer education are our priorities. Our data and account security strategy focuses on upholding the confidentiality and integrity of our customers' personal and financial information, keeping the bank safe and maintaining the trust of our customers. We deliver on that strategy by ensuring that our people have the necessary skills, knowledge and training in their roles; continually auditing our processes to identify any defects; investing in technology to provide industry-leading security to create a robust security toolset tailored to protect our system; and providing education to customers about good security practices and helping them understand their role in keeping information safe.

16

# PERSONAL SOLUTIONS

Helping you get to what’s next.

At Northwest, we find joy in going the extra mile, helping you along the journey to achieve your financial goals.

Our team of trusted advisors treat your dreams as theirs, approaching every one of them with fresh thought and personal attention.

Whether you’re just getting started or financially secure, the tools we provide today will make a lasting difference tomorrow.

![img-20.jpeg](img-20.jpeg)

17

# PERSONAL SOLUTIONS

## Deposits

Strong customer relationships are the cornerstone of our success. We continue to attract and retain checking account customers and look forward to serving them for years to come as we deepen those relationships.

### Number of Households

![img-21.jpeg](img-21.jpeg)

### Number of Checking Accounts

![img-22.jpeg](img-22.jpeg)

### Services per Household

![img-23.jpeg](img-23.jpeg)

### Checking Account Balances

in billions of dollars

![img-24.jpeg](img-24.jpeg)

### Savings and Insured Money Fund Deposit Balances

in billions of dollars

![img-25.jpeg](img-25.jpeg)

### Checking Account Fees

in millions of dollars

![img-26.jpeg](img-26.jpeg)

$^{1}$In 2021, number of households declined due to the divestiture of our insurance business.

18

## Loans

Mortgage and home equity loans continue to be a core offering and continue to provide stable return. Consumer loans have grown substantially in recent years with an emphasis on high credit quality.

### Mortgage Portfolio Yield

![img-27.jpeg](img-27.jpeg)

### Consumer Loan

in millions of dollars

![img-28.jpeg](img-28.jpeg)

### Home Equity Portfolio Yield

![img-29.jpeg](img-29.jpeg)

### Consumer Loan Portfolio Yield

![img-30.jpeg](img-30.jpeg)

### Mortgage and Home Equity Loan Losses

as a % of total mortgages and home equity loans

![img-31.jpeg](img-31.jpeg)

### Consumer Loan Losses

as a % of consumer loans

![img-32.jpeg](img-32.jpeg)

19

# PERSONAL SOLUTIONS

## Trust Services

Our relentless focus on relationships, service and customized investment management solutions has remained strong.

### Personal Trust Assets Under Management

in millions of dollars

![img-33.jpeg](img-33.jpeg)

### Personal Trust Asset Mix

as a % of total personal assets under management

![img-34.jpeg](img-34.jpeg)

### Personal Trust Revenue

in millions of dollars

![img-35.jpeg](img-35.jpeg)

### Personal Trust Revenue Mix

as a % of total personal revenue

![img-36.jpeg](img-36.jpeg)

Our experienced team of trust officers help ensure customer assets are protected-and their legacies are fulfilled.

20

## Northwest Investment Services

2022 was a challenging year when it came to market performance and investment returns. However, Northwest Investment Services continued to grow net client assets and revenue.

### Personal Assets Under Management

in millions of dollars

![img-0.jpeg](img-0.jpeg)

### Personal Asset Mix

as a % of total personal assets under management

![img-1.jpeg](img-1.jpeg)

### Personal Investment Management Revenue

in millions of dollars

![img-2.jpeg](img-2.jpeg)

### Personal Investment Management Revenue Mix

as a % of total personal revenue

![img-3.jpeg](img-3.jpeg)

![img-4.jpeg](img-4.jpeg)

Northwest
Investment
Services

![img-5.jpeg](img-5.jpeg)

21

# FINANCIAL DATA

## Condensed Consolidated Balance Sheet

In thousands, except share data

| AS OF DECEMBER 31, | 2022 | 2021 |
| --- | --- | --- |
| ASSETS |  |  |
| Cash and cash equivalents | $139,365 | $1,279,259 |
| Marketable securities available-for-sale | 1,218,108 | 1,548,592 |
| Marketable securities held-to-maturity | 881,249 | 768,154 |
| Loans receivable, net of allowance for credit losses of $118,036 and $102,241 | 10,802,416 | 9,914,151 |
| Federal Home Loan Bank stock, at cost | 40,143 | 14,184 |
| Accrued interest receivable | 35,528 | 25,599 |
| Real estate owned, net | 413 | 873 |
| Premises and equipment, net | 145,909 | 156,524 |
| Bank-owned life insurance | 255,062 | 256,213 |
| Goodwill and other intangible assets | 389,557 | 393,833 |
| Other assets | 205,574 | 144,126 |
| TOTAL ASSETS | $14,113,324 | $14,501,508 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |
| Deposits | $11,464,548 | $12,301,165 |
| Borrowed funds | 681,166 | 139,093 |
| Subordinated debt | 113,840 | 123,575 |
| Junior subordinated debentures | 129,314 | 129,054 |
| Advances by borrowers for taxes and insurance | 47,613 | 44,582 |
| Accrued interest payable | 3,231 | 1,804 |
| Other liabilities | 182,126 | 178,664 |
| TOTAL LIABILITIES | 12,621,838 | 12,917,937 |
| Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued | - | - |
| Common stock, $0.01 par value, 500,000,000 shares authorized; 127,028,848 and 126,612,183 shares issued and outstanding, respectively | 1,270 | 1,266 |
| Additional paid-in capital | 1,019,647 | 1,010,405 |
| Retained earnings | 641,727 | 609,529 |
| Accumulated other comprehensive loss | (171,158) | (37,629) |
| TOTAL SHAREHOLDERS' EQUITY | 1,491,486 | 1,583,571 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $14,113,324 | $14,501,508 |

22

# Condensed Consolidated Statements of Income

In thousands, except per share data

| YEARS ENDED DECEMBER 31, | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| INTEREST INCOME |  |  |  |
| Loans | $407,828 | $390,343 | $410,907 |
| Investments and interest-earning deposits | 40,970 | 28,165 | 23,161 |
| TOTAL INTEREST INCOME | 448,798 | 418,508 | 434,068 |
| INTEREST EXPENSE |  |  |  |
| Deposits | 14,120 | 19,122 | 35,896 |
| Borrowed funds | 13,997 | 8,124 | 6,444 |
| TOTAL INTEREST EXPENSE | 28,117 | 27,246 | 42,340 |
| Net interest income | 420,681 | 391,262 | 391,728 |
| Provision for credit losses | 17,860 | (11,883) | 83,975 |
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 402,821 | 403,145 | 307,753 |
| NON-INTEREST INCOME |  |  |  |
| Gain/loss on sale of investments | (8) | (176) | 236 |
| Gain on sale of loans | - | - | 1,302 |
| Service charges and fees | 55,188 | 51,837 | 55,613 |
| Trust and other financial services income | 27,765 | 27,921 | 20,922 |
| Insurance commission income | - | 3,633 | 9,132 |
| Income from bank-owned life insurance | 7,129 | 6,050 | 5,190 |
| Mortgage banking income | 4,865 | 15,892 | 31,391 |
| Gain on sale of insurance business | - | 25,327 | - |
| Other | 15,910 | 12,405 | 8,479 |
| TOTAL NON-INTEREST INCOME | 110,849 | 142,889 | 132,265 |
| NON-INTEREST EXPENSE |  |  |  |
| Compensation and employee benefits | 188,359 | 193,887 | 178,375 |
| Premises and occupancy costs | 29,618 | 31,073 | 30,622 |
| Office operations | 13,318 | 13,769 | 15,728 |
| Collections expense | 1,808 | 1,932 | 3,275 |
| Processing expenses | 52,496 | 55,763 | 50,050 |
| Marketing expenses | 9,095 | 8,237 | 7,695 |
| Federal deposit insurance premiums | 4,778 | 4,975 | 4,767 |
| Professional services | 14,703 | 17,621 | 12,482 |
| Amortization of intangible assets | 4,277 | 5,553 | 6,856 |
| Merger, asset disposition and restructuring expense | 5,617 | 3,453 | 20,789 |
| Other | 15,909 | 8,647 | 16,853 |
| TOTAL NON-INTEREST EXPENSE | 339,978 | 344,910 | 347,492 |
| Income before income taxes | 173,692 | 201,124 | 92,526 |
| Income tax expense | 40,026 | 46,801 | 17,672 |
| NET INCOME | $133,666 | $154,323 | $74,854 |
| Basic earnings per share | $1.05 | $1.22 | $0.62 |
| Diluted earnings per share | $1.05 | $1.21 | $0.62 |

23

# DIRECTORS AND OFFICERS

## Board of Directors

**Timothy B. Fannin**

Chairman of the Board
Retired Partner
Catalano, Case, Catalano &
Clark-Radzeta, LLP

**Louis J. Torchio**

President and
Chief Executive Officer

**William W. Harvey, Jr.**

Chief Operating Officer and
Chief Financial Officer

**Robert M. Campana**

President
Campana Capital

**Deborah J. Chadsey**

Attorney and Partner
Kavinoky Cook LLP

**Wilbur R. Davis**

Retired Co-founder and
Chief Executive Officer
Ontario Systems, LLC

**Timothy M. Hunter**

President and
Chief Executive Officer
McInnes Rolled Rings

**William F. McKnight**

Controller
Interstate Chemical Company

**John P. Meegan**

Retired Executive
Vice President and
Chief Operating Officer
Hefren-Tillotson, Inc.

**Mark A. Paup**

President and
Chief Executive Officer
Zippo Manufacturing,
W.R. Case & Sons Cutlery Company

**Sonia M. Probst**

Retired Chief Executive Officer
Rouse Estate

**David M. Tullio**

President and
Chief Executive Officer
Custom Engineering Company,
LAMJEN, Inc.

**Pablo A. Vegas**

President and
Chief Executive Officer
ERCOT

## Executive Officers

**Louis J. Torchio**

President and
Chief Executive Officer

**William W. Harvey, Jr.**

Senior Executive Vice President
Chief Operating Officer and
Chief Financial Officer

**John J. Golding**

Senior Executive Vice President
Consumer Banking

**Mark T. Reitzes**

Senior Executive Vice President
Commercial Banking

**Ronald B. Andzelik**

Executive Vice President
Chief Risk Officer

**James M. Colestro**

Executive Vice President
Retail Lending and Business Banking

**Thomas K. Creal IV**

Executive Vice President
Chief Credit Officer

**Devin T. Cygnar**

Executive Vice President
Chief Marketing Officer

**David W. Heeter**

Executive Vice President
Corporate Ambassador

**Kyle P. Kane**

Executive Vice President
Chief Human Resources Officer

**Richard K. Laws**

Executive Vice President
Chief Counsel and Corporate Secretary

**Jeffrey J. Maddigan**

Executive Vice President
Finance and Accounting

**Julia W. McTavish**

Executive Vice President
Human Resources Operations

**Lee A. Palm**

Executive Vice President
Commercial Finance

**Shawn O. Walker**

Executive Vice President
Corporate Communications
and Regional Marketing

**Scott J. Watson**

Executive Vice President
Chief Information Officer

24

# Senior Officers

**Pamela L. Balas**

Senior Vice President
Retail Operations Manager

**Carey A. Barnum**

Senior Vice President
Chief Auditor

**Stephen M. Bell**

Senior Vice President
Corporate Real Estate

**Michael W. Cappetta**

Senior Vice President
Chief Data Officer

**Kevin S. Carpenter**

Senior Vice President
Secondary Market

**Michele D. Cavalier**

Senior Vice President
Senior Trust Officer

**Steven M. Crissey**

Senior Vice President
Human Resources

**Rocco N. Diina**

Senior Vice President
Mortgage Lending

**Christina D. Dinger**

Senior Vice President
Enterprise Project Management

**Seth A. Erickson**

Senior Vice President
Credit

**Kristen M. Federici**

Senior Vice President
Accounting

**Jack R. Freeman**

Senior Vice President
Credit

**Jennifer L. Gibson**

Senior Vice President
Indiana Region

**John M. Guidone**

Senior Vice President
Dealer Services

**Andrew R. Hahn**

Senior Vice President
Investment Services

**Richard C. Hamister**

Senior Vice President
Great Lakes Region

**Ian J. Hinsdale**

Senior Vice President
Bank Secrecy Act (BSA)

**Julie Fallon Hughes**

Senior Vice President
Southwest PA/Ohio Region

**Bryan P. Jasin**

Senior Vice President
Small Business Banking

**Leslie D. Kurtz**

Senior Vice President
Chief Compliance Officer

**Owen J. LaChat**

Senior Vice President
Chief Technology Officer

**Mark E. Lapczynski**

Senior Vice President
Senior Credit Officer

**Raymond R. Learn**

Senior Vice President
Deputy Chief Counsel

**John R. Malizia**

Senior Vice President
Commercial Banking

**Julie A. Marasco**

Senior Vice President
Northwest PA Region

**Brian E. McCarthy**

Senior Vice President
Commercial Credit Manager

**David D. McCune**

Senior Vice President
Small Business Credit Manager

**Kristyn L. McGlynn**

Senior Vice President
Credit

**Kristen E. Mekulsia**

Senior Vice President
South Central PA Region

**Philip M. Mulder**

Senior Vice President
Commercial Finance Credit Officer

**Kevin W. Nelson**

Senior Vice President
Commercial Banking

**Michael C. Pietropaoli**

Senior Vice President
Commercial Banking Executive

**Melody P. Schott**

Senior Vice President
Support Services

**Brian D. Shapiro**

Senior Vice President
Commercial Finance

**Jacqueline N. Snell**

Senior Vice President
Controller

**Eric J. Sonnenberger**

Senior Vice President
Director Collateral Services

**Lance L. Spencer**

Senior Vice President
Chief Information Security Officer

**Tina M. Stinson**

Senior Vice President
Treasury Management

**C. Forrest Tefft**

Senior Vice President
Corporate Finance

**Joshua G. Wander**

Senior Vice President
Credit Data, Analytics
and Modeling

**Jeffrey R. White**

Senior Vice President
Deputy Chief Risk Officer

**Mark H. Worthy**

Senior Vice President
Commercial Banking Executive

**Brenda J. Yurick**

Senior Vice President
Deputy Chief Counsel

25

# INVESTOR INFORMATION

## Corporate Headquarters

3 Easton Oval, Suite 500
Columbus, OH 43219
Phone: (814) 726-2140
www.northwest.com

## Annual Meeting

The Annual Meeting will be held virtually
at 11:00 a.m. Eastern Time on April 19, 2023,
at www.virtualshareholdermeeting.com/NWBI2023.

## Stock Listing

Northwest Bancshares, Inc. common stock trades on the
NASDAQ Global Select Market under the symbol "NWBI."
The CUSIP number is 667340103.

## Registrar, Transfer and
Dividend Disbursing Agent

Shareholder communications regarding change of address,
change in stock registration, reporting of lost certificates and
dividend checks should be directed to:

American Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
Phone: (877) 715-0499
Email: help@astfinancial.com
www.astfinancial.com

## Online Shareholder Account Access

Registered shareholders can securely manage their account(s)
online through American Stock Transfer & Trust Company, LLC
at www.astfinancial.com by clicking "Login" at the top right
corner of the screen and then under "Shareholder Central,"
click "Login" again. Here you can easily obtain important details
about your holdings and general stock transfer information, as
well as initiate a number of transactions and inquiries including
the following:

- Update your mailing address
- Print a duplicate 1099 tax form
- Combine/consolidate accounts
- Request a replacement dividend check
- Download stock transfer instructions and forms
- Enroll in direct deposit of dividends

## Independent Auditors

KPMG LLP, Pittsburgh, Pennsylvania

## Securities Counsel

Luse Gorman, P.C., Washington, D.C.

## Financial Information

The Annual Report on Form 10-K is filed with the Securities
and Exchange Commission (SEC). Copies of this document
and other filings, including exhibits thereto, may be obtained
electronically at www.sec.gov or through the company's
website, www.northwest.com. Copies may also be obtained,
without charge, by submitting a request to:

Shareholder Relations
Northwest Bancshares, Inc.
100 Liberty Street
P.O. Box 128
Warren, PA 16365
Phone: (800) 859-1000
Email: shareholderrelations@northwest.com

## Dividend Reinvestment and
Direct Stock Purchase and Sale Plan

Northwest Bancshares, Inc. is pleased to offer a Dividend
Reinvestment and Direct Stock Purchase and Sale Plan
through American Stock Transfer & Trust Company, LLC.

The plan provides both existing registered shareholders
and interested new investors with a convenient method
to purchase shares of Northwest Bancshares, Inc.
common stock.

If you are already a registered shareholder or are interested in
becoming one, you may access the plan materials and enroll
online at www.astfinancial.com by clicking on "Login," and then
under "Invest Online" click "Login" again or visit our investor
relations website at www.northwest.com. Alternatively, you may
request a plan prospectus and enrollment application by calling
American Stock Transfer & Trust Company, LLC, toll-free, at
(877) 715-0499 or Northwest, toll-free, at (800) 859-1000.

## Direct Deposit of Dividends (ACH)

Registered shareholders who do not reinvest their dividends
may elect to have cash dividends directly deposited into their
savings or checking account, thereby providing immediate
access to funds and eliminating mail delays and lost or stolen
checks. You may enroll online by accessing your shareholder
account(s) at www.astfinancial.com or, to obtain an enrollment
card, by calling American Stock Transfer & Trust Company, LLC,
toll-free, at (877) 715-0449 or Northwest, toll-free, at
(800) 859-1000.

## Investor Relations

Louis J. Torchio
President and Chief Executive Officer

William W. Harvey, Jr.
Senior Executive Vice President,
Chief Operating Officer and Chief Financial Officer

## Shareholder Relations

Jacqueline N. Snell
Senior Vice President, Controller

26

In addition to historical information, this report may contain certain forward-looking statements that are based on assumptions and information currently available to management, including assumptions as to changes in market interest rates. These forward-looking statements are subject to various risks and uncertainties including, but not limited to, economic, regulatory, competitive, legislative and other

factors affecting the company and its operations. Readers are cautioned not to place undue reliance on these forward-looking statements, as actual results may differ materially from those expressed or implied. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the release of this report. ©2023 Northwest Bancshares, Inc.

![img-6.jpeg](img-6.jpeg)

27

Northwest
Bancshares, Inc.

3 Easton Oval, Suite 500
Columbus, OH 43219
(814) 726-2140

Northwest.com