Summary of NWBI Q2 2026 Earnings Call

1Key Financial Results and Metrics

Net Income: Achieved a record $54 million, representing a 59% year-over-year growth.

Earnings Per Share (EPS): Diluted EPS of $0.36 (adjusted EPS of $0.37), marking a record for the bank.

Return on Average Assets (ROAA): 1.27% and adjusted ROAA of 1.28%.

Return on Tangible Common Equity (ROTCE): 14.9% and adjusted ROTCE of 15.03%.

Net Interest Margin: Improved to 375 basis points, with a fourth consecutive quarter of growth.

Total Revenue: $181.2 million, a 20.5% increase year-over-year.

Loan Growth: Period-end loans increased by $174 million to $13.2 billion, with significant growth in commercial and industrial (C&I) loans.

2Strategic Updates and Business Highlights

Penns Woods Acquisition: Successfully integrated, achieving full tangible book value earn-back within one year, with expectations for crossover earn-back by year-end 2026.

New Financial Centers: Grand opening of the first of four new financial centers in Columbus, with plans for further expansion in 2027.

Investment in Talent and Technology: New hires in leadership roles and a new Chief Information Officer to enhance customer engagement.

Dividend: Continued commitment to shareholders with a quarterly dividend of $0.20 per share, marking the 127th consecutive quarter of dividends.

3Forward Guidance and Outlook

Loan and Deposit Growth: Guidance remains unchanged, with expectations for low single-digit growth in deposits and continued loan growth.

Revenue Expectations: Anticipated to be in the middle of the stated range, with net interest margin expected between 373 to 375 basis points.

Noninterest Income: Expected to be at the high end of the range, driven by growth in wealth management and service charges.

Charge-Offs: Projected to be in the low to middle of the range based on current economic conditions, with an anticipated tax rate increase to 24%.

4Bad News, Challenges, or Points of Concern

Commercial Real Estate (CRE) Portfolio: Continued runoff in the CRE portfolio, with elevated levels of classified loans, particularly in the health care sector.

Competitive Pressures: Increased competition for both loan and deposit growth, leading to potential upward pressure on deposit costs.

Expense Management: Anticipated increase in expenses due to branch openings and investments, with a focus on maintaining positive operating leverage.

Credit Quality: While overall credit metrics remain stable, there is a noted increase in classified loans, which may pose future risks.

5Notable Q&A Insights

Deposit Growth: Management expressed optimism about deposit growth in the second half of the year, particularly with new branches opening in Columbus.

Expense Guidance: Expected increase in expenses due to branch openings and investments, but management remains focused on optimizing expenses.

Loan Growth Timing: Noted strong loan growth late in the quarter, with expectations for continued momentum, particularly in C&I loans.

M&A Strategy: Open to future M&A opportunities that align with strategic goals, emphasizing the importance of cultural fit and maintaining value post-acquisition.

Credit Reserves: Management indicated that while charge-offs are expected to rise, they remain comfortable with current reserve levels and credit quality metrics. Overall, NWBI reported strong financial performance in Q2 2026, with strategic initiatives aimed at growth and expansion, despite facing challenges in certain areas such as commercial real estate and competitive pressures.