Northwest Bancshares (NWBI) investor relations material

Executive summary

• Achieved record net income of $54 million ($0.36 per diluted share) in Q2 2026, up 59% year-over-year, driven by higher earning assets, net interest income, and the Penns Woods acquisition.

• Adjusted diluted EPS was $0.37, reflecting continued operational strength and a $0.02 sequential increase.

• Completed full tangible book value earn back from the Penns Woods acquisition within one year, ahead of expectations.

• Opened first of four new financial centers in Columbus, with further expansion planned.

• Recognized as one of TIME's America's Best Companies for 2026.

Financial highlights

• Total revenue reached $181.2 million, up 3.5% quarter-over-quarter and 20.5% year-over-year.

• Net interest income grew 23% year-over-year to $147 million, with net interest margin improving to 3.75%.

• Noninterest income rose 10.6% year-over-year to $34.2 million, led by trust and service charges.

• Noninterest expense was $104.3 million, up 6.9% year-over-year, mainly due to higher personnel costs from the acquisition.

• Adjusted efficiency ratio improved to 56.2%, a 158 basis point improvement quarter-over-quarter.

Outlook and guidance

• FY2026 guidance calls for low to mid-single digit loan growth and low single digit deposit growth.

• Net interest margin expected in the 3.73%-3.75% range, assuming stable Fed funds rate.

• Noninterest income expected at the high end of the range; noninterest expense in the middle.

• Net charge-offs expected in the low to middle of the range (20–27 bps); tax rate guidance at 23–25%.

• Continued focus on organic growth, financial center expansion, and optimizing performance.