Northwest Bancshares : 2023 Summary Annual Report

2023 SUMMARY ANNUAL REPORT

HERE FOR WHAT'S NEXT

DISCLOSURE STATEMENT

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. ©2024 Northwest Bancshares, Inc.

WHO WE ARE

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

As of December 31, 2023, we held assets of $14.4 billion and had 134 full-service community banking locations, eight freestanding drive-through locations and 192 ATMs across Pennsylvania, New York, Ohio and Indiana, along with customer access to more than 55,000 free ATMs worldwide through the Allpoint Network. Since 1896, we have helped our customers and our communities be ready for what's next.

MARKET COVERAGE

NY

Proudly serving people and businesses across four states.

Niagara	Monroe

IN

Saint	Elkhart
Joseph

Kosciusko

Allen

OH

	Cuyahoga
Lorain	Summit

PA		Chautauqua
Erie
Crawford	Warren
		Forest
	Venango
Mercer		Clarion
	Butler	Armstrong
	Allegheny

Erie

	Tioga
McKean	Potter

Elk	Cameron	Clint
		on
	Clearfield	Centre

Cambria	Blair	Dauphin

Lebanon

Lancaster

Montgomery

Philadelphia

	Grant
	Delaware	Randolph
Hamilton

Franklin

Washington

York

Delaware

Monroe

Greene

Northwest Bancshares, Inc. - Columbus, Ohio

Northwest Bank - Warren, Pennsylvania

Nationally, we support customers in the commercial business segments of Corporate Finance, Sponsored Finance, Equipment Finance and Sports Finance and will expand to include Small Business Administration (SBA) and Restaurant Franchise Finance in 2024.

2023 | SUMMARY ANNUAL REPORT

3

DEAR SHAREHOLDERS,

I am pleased to report that Northwest Bank achieved solid performance in 2023, successfully navigating a dynamic environment. We sustained our financial strength and stability while progressing with our transformation into a premier commercial bank. We created value for you, our shareholders, by serving our customers and investing in our communities.

In 2023, we achieved solid core operating performance. For the year, net income rose to $135 million or $1.06 per share, up 1.0% over 2022. Our balance sheet and capital ratios remain strong, with tangible common equity (TCE) of 8.3%, which provides our organization with flexibility for continued growth. Our return on average equity (ROAE) was 8.94%, and our return on average assets (ROAA) was 0.95%, with an efficiency ratio

of 62.15%.

Total deposits grew $515 million as customers sought stability and higher returns, allowing us to reduce borrowed funds. We responsibly grew loans by approximately $500 million while keeping delinquencies and charge- offs low. We also grew fee income through investment management, trust services and small business lending.

Under the leadership of our new Chief Commercial Banking Officer, Jay DesMarteau, we made strong progress expanding commercial banking, with commercial loans up over 17.0% and becoming a larger portion

of our loan portfolio. Moreover, we expanded our geographic markets and launched multiple specialized commercial lending verticals.

Serving families, individuals and small businesses remains central to our mission. We continued investing in digital platforms to deliver better customer experiences with stronger convenience, security and speed. Our "For What's Next" brand conveys our commitment to enabling customers' financial success.

We continue investing in our infrastructure as we prudently expand the bank. Our new Chief Risk Officer, Greg Betchkal, further strengthens organizational design, risk identification and reporting. We have also made enhancements across the bank, including our credit risk and technology functions.

With Northwest Bank's enduring financial health, we maintained our long-standing practice of returning capital to our shareholders. We have now paid quarterly cash dividends for 117 straight quarters - over 29 years without interruption, with a current yield of

4	2023 | SUMMARY ANNUAL REPORT

"Understanding each customer's goals and needs, and combining that knowledge with our overall industry expertise to provide trusted guidance, will always be at the heart of what we do. We are accountable to our customers to help ignite opportunity and improve their lives."

approximately 6.4%. This remarkable track record reflects the company's consistency, resilience and focus on shareholder returns. We greatly appreciate the steadfast support of our loyal shareholders over the decades as a public company. This reinforces our commitment to deliver steady value and underscores why so many shareholders put their long-term trust in Northwest Bank.

As we will expand on in the following pages of this report, we made great strides in 2023 and our momentum positions us well entering 2024. We have great confidence that our relationship- based, responsible approach will drive long-term shareholder value. Thank you for your ongoing support.

Sincerely,

Louis J. Torchio

President and Chief Executive Officer

2023 | SUMMARY ANNUAL REPORT

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KEY STATS

$14.4B $11.3B $12.0B

ASSETS

LOANS, NET

DEPOSITS

3%			12%
21%			26%
		9%
SOURCE	42%		INVESTMENT
OF FUNDS			OF FUNDS
17%		16%	22%
15%			15%

STOCK PRICE PERFORMANCE SINCE IPO

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

2,500

2,000

NWBI

Peer Median

S&P 500 Bank

1,500

1,000

500

0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

6	2023 | SUMMARY ANNUAL REPORT

FINANCIAL HIGHLIGHTS

Northwest Bancshares, Inc. and Subsidiaries

In thousands, except per share and other data
YEAR ENDED DECEMBER 31,	2023	2022	2021
Total assets	$14,419,105	14,113,324	14,501,508
Loans receivable, net	11,289,566	10,802,416	9,914,151
Deposits	11,979,902	11,464,548	12,301,165
Shareholders' equity	1,551,317	1,491,486	1,583,571
Book value per share	12.20	11.74	12.51
Tangible book value per share1	9.17	8.67	9.40
Closing market price per share	12.48	13.98	14.16
FOR THE YEAR ENDED DECEMBER 31,
Net interest income	$435,683	420,681	391,262
Net income	134,957	133,666	154,323
Non-GAAP net income1	139,816	137,710	138,574
Diluted earnings per share	1.06	1.05	1.21
Non-GAAP earnings per share1	1.10	1.08	1.08
Dividends per share	0.80	0.80	0.79
KEY FINANCIAL RATIOS FOR THE YEAR ENDED DECEMBER 31,
Return on average shareholders' equity	8.94%	8.80%	9.91%
Non-GAAP return on average shareholders' equity1	9.26%	9.07%	8.90%
Return on average assets	0.95%	0.94%	1.08%
Non-GAAP return on average assets1	0.98%	0.97%	0.97%
Tangible common equity to assets1	8.30%	8.03%	8.43%
Net interest margin	3.28%	3.20%	2.98%
Nonperforming assets to total assets at end of period	0.67%	0.58%	1.10%
Net charge-offs as a percentage of average loans outstanding	0.11%	0.02%	0.20%
Allowance for loan losses to nonperforming loans at end of period	129.01%	143.98%	64.38%
Allowance for loan losses as a percentage of loans receivable	1.10%	1.08%	1.02%
OTHER DATA AT DECEMBER 31,
Full-service community banking locations	134	142	162
Average deposits per full-service location2	$89,402	80,736	75,933
Full time equivalent employees	2,098	2,160	2,332
Registered shareholders3	9,464	11,242	10,182

1. See reconciliation of non-GAAP financial measures in the Company's earnings release dated January 22, 2024.
2. In thousands
3. Excludes shareholders who own their stock in "street name"

2023 | SUMMARY ANNUAL REPORT

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BUILDING THE RIGHT TEAM

Success starts with having the right team in place. In 2023, Northwest Bank welcomed Jay DesMarteau as Senior Executive Vice President and Chief Commercial Banking Officer. Jay has nearly 30 years of experience in commercial banking and finance. Under his direction, we are driving additional commercial banking growth in an ambitious but responsible way.

We also integrated our Business Banking and Small Business Administration (SBA) Lending teams into Commercial Banking, giving us more capacity, greater efficiency and deeper expertise to meet the needs of businesses of any size in a wide range of industries.

FOR BUSINESSES OF EVERY SIZE

As our transformation into a high-performing commercial bank takes hold, our expertise delivers enhanced solutions that address even the most complex business needs.

This goes well beyond financing and into critical areas that impact our customers' success, including treasury management, business investments, employee retirement plans, tax planning and succession plans. And as we grow, we remain focused on providing the level of personal attention we are known for and continuously delivering on what matters.

SUPPORTING

WOMEN-OWNED

BUSINESSES

Teddi Lombardi had a vision: She wanted to repurpose her family's dairy farm to produce meat with a focus on sustainability and ethics. And she needed capital to make it happen. Teddi partnered with Northwest Bank's SBA lending team to secure a $876,000 term loan and a $50,000 line of credit to help transform Birch Creek Farmery and pursue future growth.

Supporting women-owned businesses means understanding that women business owners often face additional challenges to secure funding. That's why we celebrate success stories like Teddi's - and look forward to being a part of so many more.

Broadening Our Reach

With increased expertise and capabilities in place, we are serving a broader range of businesses with more complex needs.

For example, we are increasing our participation in syndicated loans partnering with businesses and other banks to meet the more multifaceted financing needs of larger businesses. This increases the scale of transactions Northwest Bank can participate in while continuing to manage risk.

We also added specialists with unique expertise to serve new industry verticals. In 2023, we launched our Sponsor Finance Group, which supports the acquisition, recapitalization, merger and growth investment efforts of private equity firms and companies that generate earnings between $3 million and $15 million. We also added a Commercial Finance Group focused on business aviation, long-haul trucking, inland/offshore marine financing and general equipment loans serving the middle market to large corporate finance space.

We continue to focus on C&I and building full-service business relationships that include operating accounts, loans, treasury management services and wealth management for businesses, along with the people who own and lead those businesses.

We also continued to enhance our technology infrastructure. We launched a new business loan origination platform that provides an improved client experience, including seamless loan application and processing. And our best-in-class digital treasury management tool, Northwest Treasury Pro, provides comprehensive digital business banking capabilities in a single intuitive platform.

Delivering for Businesses of All Sizes

We know that every business is different - in size, age, growth cycle, industry and need. Northwest Bank's small business team can guide owners through the important process of selecting the right options for their needs. In addition to various funding solutions, Northwest Bank is there to support other critical aspects, including tax planning, succession planning and operational support.

As a national Small Business Administration (SBA) Preferred Lender, we can make lending decisions without SBA approval - a far more efficient experience for small business owners. We have added new leadership and talented team members to our SBA lending team so that as small businesses grow, our team will remain engaged to grow with them.

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FOR PEOPLE, TODAY AND TOMORROW

Northwest's personal connections are our greatest advantage. The long-term,one-on- one customer relationships that develop through our personal banking services are the essence of who we are at Northwest Bank. We are here for our customers, in person and in their communities.

In a marketplace with no shortage of choices, our commitment is to become more customers' preferred bank of choice. That's why Northwest continually invests to develop and improve solutions our customers value most. We are proud to consider ourselves partners on our customers' path to financial success, with a comprehensive range of financial tools for today and tomorrow.

Planning Bright Financial Futures

Our commitment to our customers' financial success included expanding our wealth management capabilities in 2023. Our team provides comprehensive, strategic guidance customized to fit clients' needs and goals. Together, we put together a holistic plan, including retirement accounts, mutual fund investments, estate plans and trusts, investment secured lines of credit, insurance and annuities.

Making Banking Easier

When people are pressed for time, quick access to banking services must be seamless, intuitive and secure. Over the last several years, we have been digitally transforming our bank, giving our customers more ways to interact with our team and quickly access the services they need. Newly enhanced online and mobile experiences allow customers to bank from anywhere at any time. Streamlined account opening gets customers up and running quickly.

Growing Rewards

In 2023, we piloted a high-yield savings program in select markets both within and outside our traditional footprint, generating $268 million in deposit balances - 68% of which are new to the bank.

We also launched a new cashback credit card, the Northwest CashBack Visa Signature® card, that offers more points or cashback rewards than ever before. We saw a 44% increase in card originations over 2022, with higher average credit scores and larger credit lines for new cardholders.

Protecting Customers' Assets

Cybersecurity is a top priority at Northwest Bank. We employ state-of-the- art technology and industry best practices to maintain data and account security, ensuring the confidentiality and integrity of customers' personal and financial information. This is on top of employee training that includes the latest best practices, education to help customers understand their role in maintaining security, constant audits to assess potential vulnerabilities and new technology tools to help keep information safe.

CONGRATULATIONS TO OUR COLLEAGUES

Arlicia Robertson

Regional VP and Community Lending Officer

Arlicia was the first recipient of the Ronald J. Seiffert Champions of Opportunity Award. Honoring our former Chairman, President and CEO, this award recognizes employees who best exemplify our cultural principles.

Ray Learn

Senior Vice President and Deputy Chief Counsel

Ray was recognized with the William J. Wagner Leadership Award. Honoring our former Chairman, President and CEO, the award recognizes integrity, leadership style and contributions to moving the company forward.

10	2023 | SUMMARY ANNUAL REPORT