Northwest Bancshares, Inc. Annual Report 2015

FY2015 Annual Report · Northwest Bancshares, Inc.

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2015 SUMMARY ANNUAL R EPO RT

Message to Shareholders

William J. Wagner – Chairman, President and CEO

Over the 20 years of our
history as a public company,
it seems like the message
to shareholders each year
began by noting that
Northwest experienced
another year of significant
challenge and considerable
success. The 2015 calendar
year was no exception.

Our success was highlighted by the acquisition
of LNB Bancorp, Inc. and Lorain National
Bank, the largest acquisition in the history
of our company. However, the integration of
this diverse $1.2 billion commercial banking
institution also presented our biggest
challenge for the year as it utilized significant
resources. However, despite this additional
workload, we were able to post core earnings
that were considerably better than the prior
year, while making substantial progress in
addressing critical initiatives targeted to
improve revenues, enhance efficiency and
strengthen the management of risk.

Earnings and Shareholder Value

Net income for 2015 was $60.5 million, a
decrease of $1.5 million over the previous year
when net income was $62.0 million. However,
the current year was greatly impacted by
acquisition expenses from the LNB merger,
of approximately $6.0 million, after tax.
Excluding these expenses, net income was
$67.0 million, providing a return on average
assets and average equity of 0.80% and 6.08%,
respectively. The improvement in core income
over the previous year was primarily driven
by a $10.6 million decrease in the provision
for loan losses, as credit quality continued to
improve in 2015.

Given the continued growth in earnings
and our robust capital position, the Board of
Directors elected to increase the quarterly
dividend payment again in 2015 to $0.14 with
total dividends of $0.56 per share paid during
the year. We are pleased to note that these
payments provided Northwest’s shareholders
with a dividend yield that exceeded 4%. Also
contributing value to our shareholders was an
increase in the market value of Northwest’s
common shares, which improved by $0.86, or
6%, during 2015.

Going forward, our Board and management
team remain focused on improving profitability
metrics while effectively managing our
capital position. Capital will be deployed to
support organic growth, pursue acquisitions
that provide acceptable earnings accretion
and a reasonable dilution recovery period,
repurchase shares at reasonable pricing levels
and to pay dividends on common shares.

Acquisition of LNB Bancorp, Inc.

Production and Revenue Growth

The acquisition of LNB Bancorp, Inc. and
Lorain National Bank, which was completed
on August 14, 2015, contributed assets of
$1.2 billion and a network of 21 retail offices.
Deposits at these offices averaged in excess
of $45.0 million, and were generally much
larger and of higher quality than those of
offices we acquired in the past. The merger
also enhanced Northwest’s balance sheet as
LNB provided a favorable mix of both loan and
deposit accounts. Finally, we were pleased
with the significant talent we acquired as a
result of this merger and have enjoyed having
these Ohio bankers as part of the Northwest
family.

The LNB franchise provides a solid foundation
for our company’s future in northeastern Ohio.
We remain optimistic regarding opportunities
for growth in this major metropolitan
market, which in most respects mirrors the
core markets in western Pennsylvania and
western New York where we have experienced
considerable success. With the full transition
of LNB’s operations now complete, we were
pleased to note in our earnings release for the
fourth quarter of 2015, the first full quarter
of operations following the LNB merger,
that Northwest indeed had realized the
earnings accretion originally projected for
this transaction. We would be remiss not to
recognize the tremendous effort on the part of
our conversion team, who logged thousands
of miles and spent hundreds of nights away
from home. Their unwavering devotion to this
project made the integration a major success.

To achieve net loan
growth of $304.1 million,
our lending and credit
personnel had to
originate over $2.3 billion
of new loans.

In August of 2014, we announced an
organization-wide restructuring plan designed
to align all Northwest personnel with our three
principal strategic initiatives: production and
revenue growth, improvement in operational
efficiency and the effective management of
risk. As part of this plan, the responsibility for
production and revenue enhancement was
assigned to Steven Fisher, our Chief Revenue
Officer. William Harvey, Chief Financial
Officer, was assigned responsibility for driving
efficiency and improving profitability, while the
responsibility for risk management remained
administratively with me as Chief Executive
Officer but also with a direct reporting line to
our Board of Directors.

In the first full year of operations under this
new structure, the Production and Revenue
Division achieved considerable success in
increasing both loans and checking accounts,
the primary focus of our production efforts.
Although the U.S. economy continued to
demonstrate tepid growth throughout 2015,
Northwest’s loan portfolio, exclusive of the
LNB acquisition, increased by $304.1 million, or
5%. To achieve this level of growth, our lending
and credit personnel had to originate over $2.3
billion of new loans as the cash flow from loan
payoffs and principal payments decreased loan
balances by $2.0 billion. Similar success was
achieved in acquiring checking accounts, as
we opened 23,483 new business and personal
accounts while checking balances increased by
$163.5 million, or 9%.

The success we achieved in this area
contributed greatly to the consistency in our
net interest margin, which averaged 3.49%
in 2015 compared to 3.47% last year despite
the continued challenges of operating in an
extended low-rate environment.

Finally, many members of our management
team worked diligently this past year to
develop a plan to refresh the Northwest
brand and better establish our institution as a
full-service commercial bank, while shedding
the long-standing image of Northwest as

a limited service thrift institution. With this
change, which is scheduled to be implemented
in mid-year 2016, we will shorten the name
of our bank from “Northwest Savings Bank”
to “Northwest Bank” and introduce a new
logo and color scheme that better reflects
Northwest’s focus and capabilities.

As we look ahead, the Production and Revenue
Division will strive to continue to improve
the coordinated business development effort
in all of our geographic regions under the
leadership of our seven regional presidents.
We believe this regional approach to attracting
new customers while strengthening existing
relationships provides a competitive advantage
in each of their markets.

Profitability and Efficiency

In its first full year of operation, the
Profitability and Efficiency Division completed
a variety of initiatives designed to cut costs
and improve the earnings of our institution.
The first major project initiated by this division
was to modernize our retail mortgage and
home equity lending process. This new
process, which continues to be refined, utilizes
the consistency and efficiency of a staff of
centralized, or virtual, lenders equipped with
the latest technological advances to provide
Northwest’s customers a higher level of
satisfaction and greatly improved turnaround
times. If they choose, customers can obtain
a mortgage loan from the comfort of their
own home through a fully-automated and
paperless process. Although we continue to
diversify our loan mix, residential mortgage
and equity loans remain an important
component of our product offering, and we are
driven to be recognized as the best mortgage
lender in all of our markets.

We also advanced an initiative in 2015 to
optimize the efficiency of our branch network.
Northwest operates 181 offices across four
states. This network evolved through a
combination of new office openings, branch
purchases and whole bank acquisitions.
Because of this multifaceted growth strategy,
our office network does not effectively and

efficiently serve our markets. In addition to this
challenge, we witnessed a significant change
in recent years as to the delivery channels
our customers prefer when accessing their
financial products and services. As Northwest
introduced new delivery alternatives such as
online and mobile banking, our customers
enthusiastically embraced these new
technologies which they deemed to be more
convenient than an office visit. Accordingly,
over the past five years the volume of
transactions in our offices decreased by 25%,
with a 10% drop in the last year alone.

Recognizing these trends and an opportunity
to improve efficiency, in 2015 we consolidated
offices in Greenville, Pennsylvania and Erie,
Pennsylvania. We also spent countless hours
analyzing our entire office network to identify
other potential consolidations. However,
while striving for efficiency, we never lost
sight of our long-standing focus on customers
and employees, and the need to maintain
an acceptable market presence and a level
of service that meets our customers’ needs.
The plan that was developed was announced
on January 25, 2016 in conjunction with our
annual earnings release. As noted at that time,
we plan to consolidate 24 of our offices into
nearby Northwest locations by mid-year 2016,
while converting two full-service offices to
drive-up facilities. The expense associated with
these consolidations will be approximately
$5.0 million with annual expense savings going
forward anticipated to be between $5.0 and
$6.0 million.

Looking ahead, our Profitability and Efficiency
Division will continue to delve into all areas
of operations to identify opportunities to
streamline processes, reduce expenses and
improve the profitability of our company.

We also advanced an initiative
in 2015 to optimize the efficiency
of our branch network.

Asset Quality

Enhancement of Risk Management

Although asset quality has been of lesser
concern for bank investors in recent years,
our management team continues to
work diligently to improve the quality of
our loan portfolio and reduce the level of
nonperforming assets. We experienced great
success with that endeavor again this year as
nonperforming assets returned to levels not
experienced since before the Great Recession.

We also recognize that banks with strong
credit cultures typically provide better
shareholder returns and trade at comparably
higher multiples. With this in mind, we worked
diligently in 2015 to develop a plan to improve
our commercial lending and credit processes,
with a focus on enhanced loan origination and
a more refined and consistent credit culture.
Our new processes assign shared responsibility
for credit quality to the lending and credit
functions while ensuring that the lending
and credit functions remain attentive to the
needs of our customers and communities. This
process was recently communicated to all
lending and credit personnel, who embraced
the change with great enthusiasm. We look
forward to realizing future progress towards
our goal to become the best commercial
lending institution in all of our markets.

We continue to work diligently to improve
our enterprise risk management program
with a goal of meeting the requirements of a
$10.0 billion bank. In this regard, we launched
significant projects during 2015 to address
the management of vendor risk, interest
rate risk, liquidity risk and credit risk. We
also developed a plan to address regulatory
requirements for capital stress testing, which
will become effective if our assets eclipse
$10.0 billion as mandated by the Dodd-Frank
Act. We estimate that this project will take
approximately two years to complete and that
the annual expense to perform such tests will
approximate $2.0 million.

The Risk Management Committee of
Northwest’s Board of Directors continues
to play an active role in monitoring the risk
management position of our institution. We
believe that this continues to be one of the
most important functions of the Board as we
strive to protect shareholder value.

On behalf of our Board of Directors and the
employees of Northwest Bancshares, Inc.,
I thank you for your continued support of
our company. We look forward to continued
success with our mission to provide loyalty,
trust and value to our employees, customers,
communities and shareholders.

Sincerely,

William J. Wagner
Chairman, President and CEO

We worked diligently in 2015 to develop a plan to improve our
commercial lending and credit processes, with a focus on enhanced
loan origination and a more refined and consistent credit culture.

Market Coverage

A network of offices across four states

Northwest Bank office network

Northwest Consumer Discount Company office network

Financial Highlights

Northwest Bancshares, Inc. and subsidiaries

In thousands, except per share and other data

AT YEAR END DECEMBER 31,

2015

2014

2013

Total assets

Loans receivable, net

Deposits

Shareholders’ equity

Book value per share

Closing market price per share

FOR THE YEAR ENDED DECEMBER 31,

Net interest income

Net income

Diluted earnings per share

Dividends per share

$ 8,951,899

$ 7,775,033

$ 7,879,859

$ 7,159,449

$ 5,922,373

$ 5,734,943

$ 6,612,581

$ 5,632,542

$ 5,668,879

$ 1,163,163

$ 1,062,647

$ 1,155,185

$11.42

$13.39

$11.22

$12.53

$12.26

$14.78

$ 263,253

$ 248,840

$ 251,935

$ 60,540

$ 61,962

$ 66,559

$ 0.64

$ 0.56

$ 0.67

$ 1.62

$ 0.73

$ 0.50

KEY FINANCIAL RATIOS FOR THE YEAR ENDED DECEMBER 31,

Return on average shareholders’ equity (1)

Return on average assets (1)

Tangible common equity

Average interest rate spread

Nonperforming assets to total assets at end of period

Net charge-offs as a percentage of average loans outstanding

6.08%

0.80%

10.28%

3.29%

0.91%

0.23%

5.69%

0.79%

11.64%

3.27%

1.25%

0.41%

Allowance for loan losses to nonperforming loans at end of period

85.86%

84.35%

Allowance for loan losses as a percentage of loans receivable

0.87%

1.13%

OTHER DATA AT DECEMBER 31,

Number of:

Community banking locations

Consumer finance offices

Full time equivalent employees

Registered shareholders (2)

181

2,186

14,363

162

2,042

13,756

5.87%

0.84%

12.70%

3.31%

1.60%

0.36%

66.12%

1.23%

165

2,043

13,994

(1) 2015 amounts exclude the after-tax impact of $9.8 million of acquisition expenses. (2) Excludes shareholders who own their stock in “street name.”

Growth and Performance

Northwest has

maintained a steady

balance sheet and

income during a period

of economic challenge

while providing

shareholders with an

exceptional return

on their investment.

Assets
in billions of dollars

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Annual Net Income
in millions of dollars

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Common Stock Information

Stock Price Performance Since IPO
in total return % (Source: SNL Financial)

2015 High

Low

$12.62

$11.52

$13.03

$11.71

$13.21

$14.11

$12.32

$12.55

Div

$0.14

2014 High

Low

Div

$15.07

$13.66

$0.23

$15.11

$12.77

$13.86

$11.99

$13.30

$11.86

$1.13

$0.13

1,400

1,200

1,000

800

600

400

200

-200

+1,241.65%
NWBI
S&P 500
+557.46%
SNL U.S. Bank +414.64%

1
9
9
4

1
9
9
5

1
9
9
6

1
9
9
7

1
9
9
8

1
9
9
9

2
0
0
0

2
0
0
1

2
0
0
2

2
0
0
3

2
0
0
4

2
0
0
5

2
0
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6

2
0
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2
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5

$8.95$7.78$7.88$7.94$7.96$8.15$8.03$6.93$6.66$6.53$60.5$62.0$66.6$63.4$64.2$57.5$32.7$48.2$49.1$51.5Corporate Profile

Northwest Bancshares, Inc.

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

As of December 31, 2015, we held assets of
$8.95 billion and operated 181 community
banking locations and 284 ATMs across
Pennsylvania, New York, Ohio and Maryland.

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

For 120 years, we have served our
communities by meeting the diverse financial
needs of individuals, families, organizations
and businesses seeking to bank, borrow,
invest, insure and plan their futures.

Northwest's sources of funds and mix of loans and investments

are well-balanced and diversified.

Source
of Funds

Investment
of Funds

Checking Accounts

Certificates of Deposit

Savings Accounts

Money Market Accounts

Borrowed Funds

Subordinated Debt

29%

22%

18%

17%

13%

Mortgage Loans

Commercial Real Estate

Home Equity Loans

Cash and Investments

Other Assets

Consumer Loans

Commercial Loans

31%

26%

13%

12%

5%7%13%26%12%31%6%17%18%13%29%22%1%Business Solutions

Working together to drive success

We have products and services to compete with any bank and
experts who are passionate about pinpointing opportunities and
solutions. We help customers find what they need and want –
guiding them down the right path to make their business better.

When they succeed, we succeed.

No matter the size, industry or mission, we build relationships that
last by working together to meet their goals. We provide the level
of advice and direction expected from a trusted financial partner.

Bank

Borrow

Invest

Insure

Plan

Business Solutions

Loans and Deposits

Northwest commercial loans and deposits have grown substantially, while yields and costs have
drifted lower due to the low interest rate environment. Our business deposit mix is diversified as we
continue to meet the needs of all types of businesses.

Commercial Loans
in millions of dollars

Business Deposit Balances
in millions of dollars

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

Commercial Loan Yields

Cost of Business Deposits

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

Commercial Loan Losses
as a % of commercial loans

Business Deposit Mix

44%

44% of business deposits
were in non-interest
checking accounts

Money Market

Interest Checking

Municipal

30%

13%

2011

2012

2013

2014

2015

13%30%44%13%0.59%0.94%0.38%0.43%0.72%$1,405.2$1,205.5$1,073.4$1,017.6$855.34.30%4.46%4.61%5.25%5.63%0.11%0.13%0.14%0.12%0.17%$2,962.0$2,294.5$2,102.8$2,048.6$1,889.6Investment Management, Retirement and Insurance Services

We dramatically increased assets under management and administration in recent years, fueling an
increase in fee income from business investment management and retirement services accounts.
Our business insurance lines have also provided a significant boost to fee income.

Business Assets Under Management
in millions of dollars

Business Asset Mix
as a % of total business assets under management

96% of business
investment assets were in
trust accounts

Investment Advisory

96%

2011

2012

2013

2014

2015

Business Investment Management and
Retirement Services Revenue
in millions of dollars

Business Investment Management and
Retirement Services Revenue Mix
as a % of total business revenue

62%

62% of business
investment revenue came
from trust accounts

Retirement Services

Investment Advisory

35%

2011

2012

2013

2014

2015

Business Insurance Revenue
in millions of dollars

Business Insurance Revenue Mix
as a % of total business insurance revenue

71%

71% of business insurance
revenue came from
employee benefits
accounts

Property and Casualty

29%

2011

2012

2013

2014

2015

$7.3$7.0$6.4$3.7$3.371%29%96%4%$6.6$6.2$5.5$4.5$4.235%62%3%$1,168.0$1,142.2$1,046.8$808.9$718.7Personal Solutions

More choices, guidance and convenience

For 120 years, we’ve been a trusted bank in our communities.
And while we’ve grown, our hometown approach hasn't changed.

We’re proud to be friends, neighbors – long-term partners who
provide caring, personalized service to help our customers achieve
better living through better banking. As clear-eyed advisors looking
out for their best interests, we deliver everything they need to bank
when, where and how they want.

We're proud to be a community bank – a local place for saving and
borrowing, investing and insuring, a resource to help customers
make good financial decisions as they travel down life’s path.

Bank

Borrow

Invest

Insure

Plan

Deposits

We take pride in relationship banking and meeting all of our customers' needs. In 2015, we
welcomed a substantial number of new households with the acquisition of Lorain National Bank.
We continue to have great success in attracting and keeping new checking account customers,
while checking account balances and fee income continue to grow.

Number of Households

Number of Checking Accounts

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

Services Per Household

Checking Account Balances
in millions of dollars

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

Savings Account Balances
in millions of dollars

Checking Account Fees
in millions of dollars

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

$33.7$32.0$31.2$31.5$32.3253,717229,020223,139222,427218,420$1,325.6$1,035.9$963.6$935.0$867.9$2,660.5$2,388.4$2,359.5$2,271.3$2,036.3337,904289,185288,747292,397295,5962.9873.0562.9412.9082.846Personal Solutions

Loans

Mortgage and home equity loans continue to provide a solid yield during a period of low interest
rates, while mortgage and home equity losses have returned to historic norms. Our consumer
loan portfolio grew dramatically in 2015 with the acquisition of Lorain National Bank (LNB), while
consumer loan losses dropped substantially. The consumer loan yield also decreased significantly
due to the nature of the LNB portfolio.

Mortgage Portfolio Yield

Consumer Loans
in millions of dollars

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

Home Equity Portfolio Yield

Consumer Loan Portfolio Yield

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

Mortgage and Home Equity Loan Losses
as a % of total mortgages and home equities

Consumer Loan Losses
as a % of consumer loans

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

6.86%10.76%11.62%11.98%11.57%0.09%0.11%0.13%0.24%0.24%$510.6$242.7$228.3$228.4$245.74.54%4.72%4.89%5.27%5.64%4.26%4.43%4.53%4.83%5.27%2.20%2.65%2.65%2.20%1.64%Investment Management and Insurance

Personal assets under management and administration as well as brokerage have grown
significantly in recent years as we have had success in attracting and keeping new customers –
leading to a growing source of fee income.

Personal Assets Under Management
in millions of dollars

Personal Asset Mix
as a % of total personal assets under management

39%

39% of personal investment
assets were in
trust accounts

Investment Advisory

Brokerage

33%

28%

2011

2012

2013

2014

2015

Personal Investment Management Revenue
in millions of dollars

Personal Investment Management Revenue Mix
as a % of total personal revenue

40%

40% of personal investment
revenue came from trust
accounts

Investment Advisory

Brokerage

38%

22%

2011

2012

2013

2014

2015

Personal Insurance Revenue
in thousands of dollars

Personal Insurance Revenue Mix
as a % of total personal insurance revenue

79% of personal insurance
revenue came from property
and casualty policies

Health and Life Insurance

21%

79%

2013

2014

2015

38%40%22%28%39%33%79%21%$576.5$469.3$352.2$7.3$7.5$5.1$4.7$4.6$959.1$849.8$706.4$702.7$639.3
Financial Data

Condensed consolidated balance sheet

In thousands, except share data

ASSETS

Cash and cash equivalents

Marketable securities available-for-sale

Marketable securities held-to-maturity

AS OF DECEMBER 31,

2015

2014

$ 167,408

$ 240,706

874,405

31,689

912,371

103,695

Loans receivable, net of allowance for loan losses of $62,672 and $67,518

7,159,449

5,922,373

Accrued interest receivable

Real estate owned, net

Bank-owned life insurance

Premises and equipment

Goodwill and other intangible assets

Federal Home Loan Bank stock, at cost

Other assets

TOTAL ASSETS

LIABILITIES AND SHAREHOLDERS’ EQUITY

Deposits

Borrowed funds

Advances by borrowers for taxes and insurance

Accrued interest payable

Other liabilities

Trust preferred securities

TOTAL LIABILITIES

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;

101,871,737 and 94,721,453 shares issued and outstanding, respectively

Paid-in capital

Retained earnings

Unallocated common stock of Employee Stock Ownership Plan

Accumulated other comprehensive loss, net

TOTAL SHAREHOLDERS’ EQUITY

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

21,072

8,725

168,509

154,351

270,718

40,903

54,670

18,623

16,759

144,362

143,909

178,356

33,293

60,586

$ 8,951,899

$ 7,775,033

$ 6,612,581

$ 5,632,542

975,007

33,735

1,993

54,207

111,213

888,109

30,507

936

57,198

103,094

7,788,736

6,712,386

—

1,019

717,603

489,292

(20,216)

(24,535)

—

947

626,134

481,577

(21,641)

(24,370)

1,163,163

1,062,647

$ 8,951,899

$ 7,775,033

Condensed consolidated statements of income

INTEREST INCOME:

Loans

Investments and interest-earning cash

TOTAL INTEREST INCOME

INTEREST EXPENSE:

Deposits

Borrowed funds

TOTAL INTEREST EXPENSE

Net interest income

Provision for loan losses

Net interest income after provision for loan losses

NONINTEREST INCOME:

Service charges and fees

Trust and other financial services income

Gain/(loss) on securities

Insurance commission income

Income from bank-owned life insurance

Other

YEARS ENDED DECEMBER 31,

2015

2014

2013

$ 298,665

$ 282,050

$ 286,977

20,915

319,580

24,055

32,272

56,327

263,253

9,712

253,541

38,362

12,342

1,037

9,526

4,338

3,231

23,377

305,427

25,322

31,265

56,587

248,840

20,314

228,526

36,383

12,369

4,930

8,760

4,191

4,133

26,120

313,097

29,279

31,883

61,162

251,935

18,519

233,416

35,884

9,330

5,405

8,635

5,197

2,025

TOTAL NONINTEREST INCOME

68,836

70,766

66,476

NONINTEREST EXPENSE:

Compensation and employee benefits

Premises and occupancy costs

Office operations

Processing expenses

Amortization of intangibles

Marketing expenses

Federal deposit insurance premiums

Acquisition expenses

Other

TOTAL NONINTEREST EXPENSE

Income before income taxes

Income tax expense

NET INCOME

Basic earnings per share

Diluted earnings per share

119,818

24,641

15,584

30,780

1,688

8,499

5,109

9,751

18,007

233,877

88,500

27,960

115,967

23,455

14,721

26,671

1,323

8,213

5,193

394

19,598

215,535

83,757

21,795

112,190

23,182

14,454

25,548

1,210

6,284

5,600

–

18,666

207,134

93,070

26,199

$ 60,540

$ 61,962

$ 66,559

$ 0.64

$ 0.68

$ 0.67

$ 0.73

Directors and Officers

Northwest Bancshares, Inc. and Northwest Bank

Board of Directors

William J. Wagner
Chairman, President and
Chief Executive Officer
Northwest Bancshares, Inc.

Robert M. Campana
President
Campana Capital

Deborah J. Chadsey
Attorney and Partner
Kavinoky Cook LLP

Corporate Officers

William J. Wagner
President and
Chief Executive Officer

Timothy B. Fannin
Retired Partner
Catalano, Case, Catalano
& Clark-Radzieta, LLP

Timothy M. Hunter
President and
Chief Executive Officer
McInnes Rolled Rings and
Erie Bronze &
Aluminum Company

Dr. A. Paul King
Retired President
Oral Surgery of Erie

Dr. Richard E. McDowell
President Emeritus
The University of Pittsburgh
at Bradford

William F. McKnight
Controller,
Interstate Chemical Company

John P. Meegan
Executive Vice President and
Chief Operating Officer
Hefren-Tillotson, Inc.

Sonia M. Probst
Retired Chief Executive Officer
Rouse Estate

Philip M. Tredway
President and
Chief Executive Officer
Erie Molded Plastics, Inc.

Andrew C. Young
Executive Vice President
Chief Information Officer

William C. Tarpenning
Senior Vice President
Mortgage Banking

Michael A. Doherty
Vice President
Commercial Loan Administration

Steven G. Fisher
Senior Executive Vice President
Chief Revenue Officer

Ronald B. Andzelik
Senior Vice President
Chief Compliance Officer

C. Forrest Tefft
Senior Vice President
Corporate Finance Lending

W. Norman Ewing
Vice President
Systems and Programming

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

Neil A. Aquino, Jr.
Senior Vice President
Commercial Real Estate Lending

Shawn O. Walker
Senior Vice President
Chief Marketing Officer

Michael W. Bickerton
Executive Vice President
Commercial Lending

Richard K. Laws
Executive Vice President
Chief Counsel
Corporate Secretary

Julia W. McTavish
Executive Vice President
Chief Human Resources Officer

Gerald J. Ritzert
Executive Vice President
Corporate Controller

Michael G. Smelko
Executive Vice President
Chief Credit Officer

Thomas J. Townsend
Executive Vice President
Chief Risk Officer

David E. Westerburg
Executive Vice President
Chief Operations Officer

Region Presidents

Nancy J. May
Eastern Pennsylvania and
Maryland

Douglas H. Bert
Senior Vice President
Insurance Services

Don J. Boetger
Senior Vice President
Retirement Services

William M. Guthrie
Senior Vice President
Investment Management

John E. Hall
Senior Vice President
Consumer Lending

Pamela L. Balas
Vice President
Mortgage Banking

Stephen M. Bell
Vice President
Facilities

Thomas K. Creal
Vice President
Credit Administration

Steven M. Crissey
Vice President
Human Resources

Neil R. Hoffman
Senior Vice President
Commercial/Industrial Lending

Michael R. DelPrince
Vice President
Accounting

D. Kirk Jacobson
Senior Vice President
Small Business Lending

Kevin G. Mizak
Senior Vice President
Chief Auditor

Vicki L. Stec
Senior Vice President
Bank Secrecy Officer

Barbara L. DeMontier
Vice President
Human Resources

Christina D. Dinger
Vice President
Process Improvement/
Program Management

Dean C. Huya
Vice President
Loss Mitigation

Julie K. Johnson
Vice President
Loan Servicing

Kimberly A. Johnson
Vice President
Electronic Banking

Dorothy E. Lobdell
Vice President
Mortgage Banking

Edward A. Martone
Vice President
Human Resources

Donald E. Reed
Vice President
Treasurer

Melody Schott
Vice President
Office Services

Eric D. Stoever
Vice President
Chief Technology Officer

James M. Swanson
Vice President
Deposit Operations

Julie A. Marasco
Northwest Pennsylvania

Christopher A. Martin
Southwest Pennsylvania

James E. Martin
Erie, Pennsylvania

Kevin W. Nelson
Ohio

Jonathan E. Rockey
Central Pennsylvania

Jonathan P. Scalise
New York

Investor Information

Corporate Headquarters

Financial Information

100 Liberty Street
PO Box 128
Warren, Pennsylvania 16365
Telephone: (814) 726-2140
Fax: (814) 728-7716
northwest.com

Annual Meeting

April 20, 2016, 11:00 a.m.
The Struthers Library Theatre
302 West Third Avenue
Warren, Pennsylvania 16365

Stock Listing

Northwest Bancshares, Inc. common stock is traded on the
NASDAQ Global Select Market under the symbol “NWBI.”

Stock Transfer, Registrar and
Dividend Disbursing Agent

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

American Stock Transfer and Trust Company, LLC
6201 15th Avenue
Brooklyn, New York 11219
Toll Free: (800) 937-5449
Toll Free: (877) 777-0800
Fax: (718) 236-2641
Email: info@amstock.com
amstock.com

Online Shareholder Access

Registered shareholders can access their account(s) online
through American Stock Transfer & Trust Company, LLC
at amstock.com. Here you can easily initiate a number of
transactions and inquiries, as well as obtain important
details about your holdings and general stock transfer
information.

• Update your mailing address
• Access account information
• 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.

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 the SEC home page at sec.gov or
through the Company’s website, northwest.com. Copies
may also be obtained, without charge, upon request by
writing to the Company’s corporate headquarters.

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 Administrator”).

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 material and
enroll online at amstock.com by clicking on “Invest Online”
under “Shareholder Services” or from our investor relations
website at northwest.com. Alternatively, you may request
a plan prospectus and enrollment application by calling
American Stock Transfer & Trust Company, toll-free, at
(877) 715-0499 or Northwest, toll-free, at (800) 859-1000 or
(814) 728-7263.

Direct Deposit of Dividends

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 amstock.com or, to obtain an
enrollment card, by calling the Company’s transfer agent,
toll-free, at (800) 937-5449 or Northwest, toll-free, at
(800) 859-1000.

Investor Relations

William J. Wagner
Chairman, President and Chief Executive Officer

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

Shareholder Relations

Ian R. Scott
Assistant Vice President, Shareholder Relations and
Assistant Corporate Secretary
(800) 859-1000

It's a new brand day.

As our customers and our industry evolve, we must evolve.
It's about more than just a new look. It's a chance to further
everyone's understanding of who we are and where we are
going.

After 120 years, our new visual identity marks the beginning
of the next chapter to distinguish Northwest in the minds
of consumers and signals our renewed purpose of delivering
on the promise of better banking – in the straightforward,
reliable way that people and businesses want today.

Our refreshed logo takes the best elements of our brand
heritage – the Northwest green and familiar chiclet – and
transforms them for a new era.

At its most basic level, our new look is a visual statement
honoring our history and reflecting an identity that stands
for simplicity, honesty and passion in a category rife with
confusion, disclaimers and frustration. It's a cleaner, more
contemporary design with the familiar name Northwest –
a prominent and reassuring symbol of strength, stability and
trust in the hearts and minds of our employees, customers,
communities and shareholders.

Our new brand is a sign that Northwest is keeping up with
the times, and changing in new and exciting ways.

The best is yet to come.

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. ©2016 Northwest Bancshares, Inc.

100 Liberty Street

PO Box 128

Warren, Pennsylvania 16365

(814) 726-2140

northwest.com