Northwest Bancshares FY 2025 provision for credit losses jumps 127% to USD 56 million

Northwest’s FY 2025 net income was USD 126.0 million, or USD 0.92 per diluted share. Net interest income was USD 525.4 million (+21%), with net interest margin (FTE) of 3.69%. Total interest income was USD 749.7 million and total interest expense was USD 224.3 million. The provision for credit losses was USD 55.6 million (2.3x), including USD 20.7 million of CECL Day 1 provision expense tied to the Penns Woods acquisition. Noninterest income was USD 129.3 million (+49%), while noninterest expense was USD 436.3 million (+18%), including USD 42.8 million in merger, asset disposition and restructuring expense. Return on average assets was 0.82% and return on average equity was 7.27%. At Dec. 31, 2025, Northwest reported total assets of USD 16.8 billion and deposits of USD 13.9 billion. Loans receivable, net were USD 12.9 billion, and shareholders’ equity was USD 1.9 billion. Asset quality metrics included nonperforming assets to total assets of 0.64% and nonperforming loans to net loans receivable of 0.84%, with allowance for credit losses to loans receivable at 1.15%. Northwest highlighted the completion of its acquisition of Penns Woods on July 25, 2025, which added USD 2.2 billion of total assets (including USD 1.8 billion of loans) and USD 1.6 billion of deposits after purchase accounting adjustments, and resulted in preliminary goodwill of USD 63 million and core deposit intangibles of USD 42 million. The company also reported $193 million of brokered deposits at year-end (average all-in cost 4.99%) and USD 941 million of reciprocal deposits through Intrafi network programs (average cost 3.00%).

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