Northwest Bancshares, Inc. Announces Second Quarter 2017 Earnings and Quarterly Dividend

Excluding the $17.2 million profit received on the sale of the Maryland offices, noninterest income increased by $4.0 million, or 19.8%, to $24.3 million for the quarter ended June 30, 2017, from $20.3 million for the quarter ended June 30, 2016. Contributing to this increase was an increase in service charges and fees of $2.1 million, or 19.9%, which is attributable to the growth in checking accounts. Additionally, trust and other financial services income increased by $1.3 million, or 40.4%, due primarily to growth in assets under management.

Excluding the $37.0 million penalty incurred in the prior year period due to the prepayment of long-term FHLB borrowings, noninterest expense increased by $8.1 million, or 12.5%, for the quarter ended June 30, 2017. This increase, comprised primarily of increases in compensation and employee benefits of $4.5 million, or 13.4%, premises and occupancy costs of $828,000, or 13.2%, office operations of $827,000, or 24.7%, and amortization of intangible assets of $1.0 million, or 146.3%, relates primarily to the acquisition of 18 bank offices and related personnel in September 2016.

Net income for the six-month period ended June 30, 2017 was $48.7 million, or $0.48 per diluted share. This represents an increase of $37.7 million, or 344.0%, compared to the six-month period ended June 30, 2016, when net income was $11.0 million, or $0.11 per diluted share. The annualized returns on average shareholders' equity and average assets for the six-month period ended June 30, 2017 were 8.34% and 1.03% compared to 1.90% and 0.25% for the same period last year. In addition to the aforementioned items impacting the quarter, net interest income for the six-month period ended June 30, 2017 increased by $16.2 million, or 11.0%, due primarily to the loans received with the office acquisition previously discussed.

As announced in April, the Company closed the remaining 43 offices of its consumer finance subsidiary, Northwest Consumer Discount Company ("NCDC"), on July 14, 2017. All loans were transferred to Northwest Bank which will continue to operate NCDC's indirect sales finance program.

Also, in a continued effort to exit less efficient lines of business, Northwest Bank recently entered into a definitive agreement to sell its retirement services subsidiary, Boetger and Associates, Inc. ("Boetger"), to Boetger's current managing director. Both the annual revenue and annual expense generated by this line of business are approximately $2.5 million. It is anticipated that this transaction will close in the fourth quarter of 2017 and that Boetger will continue to administer Northwest Bank's retirement plans.

Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. Northwest operates 164 full-service community banking offices and nine free standing drive-through facilities in Pennsylvania, New York, and Ohio.  Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.

Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; and (7) increased risk associated with commercial real-estate and business loans. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.

Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(Dollars in thousands, except per share amounts)
	June 30,  2017				December 31,  2016			June 30,  2016
Assets
Cash and cash equivalents	$	111,772			119,403			87,711
Interest-earning deposits in other financial institutions	44,355				266,902			223,084
Federal funds sold and other short-term investments	640				3,562			636
Marketable securities available-for-sale (amortized cost of $949,161, $825,552 and $692,403, respectively)	952,802				826,200			705,297
Marketable securities held-to-maturity (fair value of $36,560, $20,426 and $25,978, respectively)	36,206				19,978			25,144
Total cash, interest-earning deposits and marketable securities	1,145,775				1,236,045			1,041,872
Residential mortgage loans held for sale	10,297				9,625			39,942
Residential mortgage loans	2,740,174				2,705,139			2,717,656
Home equity loans	1,301,032				1,328,772			1,162,174
Consumer loans	658,125				642,961			546,550
Commercial real estate loans	2,396,663				2,342,089			2,363,376
Commercial loans	580,446				528,761			465,223
Total loans receivable	7,686,737				7,557,347			7,294,921
Allowance for loan losses	(62,885)				(60,939)			(60,781)
Loans receivable, net	7,623,852				7,496,408			7,234,140
Assets held-for-sale	—				152,528			—
Federal Home Loan Bank stock, at cost	8,142				7,390			40,321
Accrued interest receivable	21,667				21,699			20,713
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