What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-08-04 compared with 2023-05-05 · 350 added, 128 removed, 1102 unchanged (30% of the section changed)

4 unchanged sentences

(in thousands, except share data)

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Cash and cash equivalents $ 127,627 139,365

46 unchanged sentences

(in thousands, except share data)

Quarter ended March 31,

Quarter ended June 30, Six months ended June 30,

2023 2022 2023 2022

Interest income:

11 unchanged sentences

Total interest expense

35,447 5,631 57,923 11,441

Net interest income

6 unchanged sentences

Loss on sale of investments ( 8,306 ) ( 3 ) ( 8,306 ) ( 5 )

Gain on sale of mortgage servicing rights 8,305 — 8,305 —

Gain on sale of SBA loans 832 — 1,111 —

Service charges and fees 14,833 13,673 28,022 26,740

Trust and other financial services income 6,866 7,461 13,315 14,473

Gain/(loss) on real estate owned, net 108 ( 29 )

Gain on real estate owned, net 785 291 893 262

Income from bank-owned life insurance 1,304 2,008 2,573 3,991

26 unchanged sentences

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited)

(in thousands)

Quarter ended March 31,

Quarter ended June 30, Six months ended June 30,

2023 2022 2023 2022

Net income $ 33,044 33,426 66,723 61,713

Other comprehensive income/(loss) net of tax:

Net unrealized holding gains/(losses) on marketable securities:

Unrealized holding gains/(losses), net of tax of ($ 3,308 ) and $ 18,877 , respectively

Other comprehensive (loss)/income net of tax:

Net unrealized holding (losses)/gains on marketable securities:

Unrealized holding losses, net of tax of $ 3,771 , $ 11,973 , $ 463 and $ 30,850 , respectively

( 17,719 ) ( 39,954 ) ( 4,702 ) ( 104,737 )

Reclassification adjustment for gains/(losses) included in net income, net of tax of $ 0 and $ 0 , respectively

Net unrealized holding gains/(losses) on marketable securities 13,017 ( 64,784 )

Reclassification adjustment for losses/(gains) included in net income, net of tax of ($ 1,731 ), $ 0 , ($ 1,731 ) and $ 0 , respectively

5,636 ( 1 ) 5,636 ( 2 )

Net unrealized holding (losses)/gains on marketable securities ( 12,083 ) ( 39,955 ) 934 ( 104,739 )

Change in fair value of interest rate swaps, net of tax of ($ 508 ), $ 0 , ($ 508 ) and $ 0 , respectively

1,737 — 1,737 —

Defined benefit plan:

1 unchanged sentence

( 382 ) ( 131 ) ( 764 ) ( 262 )

Other comprehensive income/(loss) 12,635 ( 64,915 )

Other comprehensive (loss)/income ( 10,728 ) ( 40,086 ) 1,907 ( 105,001 )

Total comprehensive income/(loss) $ 22,316 ( 6,660 ) 68,630 ( 43,288 )

5 unchanged sentences

Additional paid-in capital Retained earnings Accumulated

other comprehensive loss Total shareholders’ equity

Quarter ended June 30, 2023 Shares Amount

Beginning balance at March 31, 2023 127,065,400 $ 1,271 1,020,855 649,672 ( 158,523 ) 1,513,275

Comprehensive income:

Net income — — — 33,044 — 33,044

Other comprehensive loss, net of tax of $ 1,684

— — — — ( 10,728 ) ( 10,728 )

Total comprehensive income/(loss) — — — 33,044 ( 10,728 ) 22,316

Exercise of stock options 3,466 — 33 — — 33

Stock-based compensation expense 40,727 1 1,300 — — 1,301

Stock-based compensation forfeited ( 20,630 ) ( 1 ) 1 — — —

Dividends paid ($ 0.20 per share)

— — — ( 25,424 ) — ( 25,424 )

Ending balance at June 30, 2023 127,088,963 $ 1,271 1,022,189 657,292 ( 169,251 ) 1,511,501

Additional paid-in capital Retained earnings Accumulated

other comprehensive loss Total shareholders’ equity

Quarter ended June 30, 2022 Shares Amount

Beginning balance at March 31, 2022 126,686,373 $ 1,267 1,012,308 612,481 ( 102,544 ) 1,523,512

Comprehensive income:

Net income — — — 33,426 — 33,426

Other comprehensive loss, net of tax of $ 12,024

— — — — ( 40,086 ) ( 40,086 )

Total comprehensive income/(loss) — — — 33,426 ( 40,086 ) ( 6,660 )

Exercise of stock options 139,795 1 1,618 — — 1,619

Stock-based compensation expense 65,155 2 1,422 — — 1,424

Stock-based compensation forfeited ( 9,557 ) ( 1 ) 1 — — —

Dividends paid ($ 0.20 per share)

— — — ( 25,356 ) — ( 25,356 )

Ending balance at June 30, 2022 126,881,766 $ 1,269 1,015,349 620,551 ( 142,630 ) 1,494,539

See accompanying notes to unaudited Consolidated Financial Statements.

NORTHWEST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(in thousands, expect share data)

Additional paid-in capital Retained earnings Accumulated

other comprehensive income/(loss) Total shareholders’ equity

Quarter ended March 31, 2023 Shares Amount

Six months ended June 30, 2023 Shares Amount

Beginning balance at December 31, 2022 127,028,848 $ 1,270 1,019,647 641,727 ( 171,158 ) 1,491,486

11 unchanged sentences

— — — ( 50,829 ) — ( 50,829 )

Ending balance at March 31, 2023 127,065,400 $ 1,271 1,020,855 649,672 ( 158,523 ) 1,513,275

Ending balance at June 30, 2023 127,088,963 $ 1,271 1,022,189 657,292 ( 169,251 ) 1,511,501

Additional paid-in capital Retained earnings Accumulated

other comprehensive loss Total shareholders’ equity

Quarter ended March 31, 2022 Shares Amount

other comprehensive income/(loss) Total shareholders’ equity

Six months ended June 30, 2022 Shares Amount

Beginning balance at December 31, 2021 126,612,183 $ 1,266 1,010,405 609,529 ( 37,629 ) 1,583,571

9 unchanged sentences

— — — ( 50,691 ) — ( 50,691 )

Ending balance at March 31, 2022 126,686,373 $ 1,267 1,012,308 612,481 ( 102,544 ) 1,523,512

Ending balance at June 30, 2022 126,881,766 $ 1,269 1,015,349 620,551 ( 142,630 ) 1,494,539

See accompanying notes to unaudited Consolidated Financial Statements.

3 unchanged sentences

(in thousands)

Quarter ended March 31,

Six months ended June 30,

Operating activities:

2 unchanged sentences

Provision for credit losses 13,926 1,148

Net loss on sale of assets 1,254 780

Loss on sale of investments 8,306 5

Net loss/(gain) on sale of assets 691 ( 630 )

Mortgage banking activity 5,900 ( 2,660 )

Gain on sale of SBA loans ( 1,112 ) —

Gain on sale of mortgage servicing rights ( 8,305 ) —

Net depreciation, amortization and accretion 8,798 2,860

Decrease/(increase) in other assets 6,958 ( 30,666 )

Decrease in other assets ( 40,281 ) ( 23,489 )

Decrease in other liabilities ( 2,545 ) ( 16,891 )

2 unchanged sentences

Noncash write-down of real estate owned 37 41

Deferred income tax expense 1,010 2,256

Origination of loans held-for-sale ( 82,984 ) ( 225,091 )

Proceeds from sale of loans held-for-sale 78,822 222,662

Net cash provided by/(used in) operating activities 29,843 ( 22,457 )

Net cash provided by operating activities 52,755 26,830

Investing activities:

Purchase of marketable securities held-to-maturity — ( 212,892 )

Purchase of marketable securities available-for-sale ( 23,502 ) ( 102,178 )

1 unchanged sentence

Proceeds from maturities and principal reductions of marketable securities available-for-sale 57,276 148,260

Proceeds from sale of marketable securities available-for-sale 101,229 —

Proceeds from bank-owned life insurance 1,633 2,553

Loan originations ( 2,024,737 ) ( 2,158,246 )

Proceeds from sale of mortgage servicing rights 13,118 —

Loan purchases — ( 304,163 )

3 unchanged sentences

Proceeds from sale of real estate owned for investment, net — 153

Disposals of premises and equipment, net 1,340 329

(Purchases)/disposals of premises and equipment, net ( 1,330 ) 1,687

Net cash used in investing activities ( 172,687 ) ( 512,123 )

NORTHWEST BANCSHARES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (continued)

(in thousands)

Three months ended March 31,

Financing activities:

Net increase in deposits $ 72,631 19,235

Net increase/(decrease) in short-term borrowings 7,475 ( 17,657 )

Increase/(decrease) in advances by borrowers for taxes and insurance 2,280 ( 560 )

Net increase/(decrease) in deposits 197,847 ( 233,910 )

Repayments of long-term borrowings — ( 10,094 )

Net decrease in short-term borrowings ( 48,852 ) ( 8,603 )

Increase in advances by borrowers for taxes and insurance 9,530 11,040

Cash dividends paid on common stock ( 50,829 ) ( 50,691 )

11 unchanged sentences

Loan foreclosures and repossessions $ 1,803 2,591

Sale of real estate owned financed by the Company 70 —

See accompanying notes to unaudited Consolidated Financial Statements.

13 unchanged sentences

These reclassifications had no effect on the reported results of operations.

An adjustment has been made to the Consolidated Statements of Income and Consolidated Statements of Cash Flows for the quarter ended March 31, 2022, to reclassify the provision for credit losses - unfunded commitments, previously presented in other expense, to provide additional transparency to financial statement users.

An adjustment has been made to the Consolidated Statements of Income and Consolidated Statements of Cash Flows for the quarter and six months ended June 30, 2022, to reclassify the provision for credit losses - unfunded commitments, previously presented in other expense, to provide additional transparency to financial statement users.

The results of operations for the quarter ended are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, or any other period.

6 unchanged sentences

The PSUs have a three-year cliff vesting, from the date of grant, and any PSUs earned will be issued after the vesting period.

During the quarter ended March 31, 2023, we awarded discretionary grants of 112,021 RSUs with a weighted average grant date fair value of $ 11.41 .

As of June 30, 2023, we awarded discretionary grants of 168,639 RSUs with a weighted average grant date fair value of $ 10.92 .

These shares vest over a two or three years period with the first vesting occurring one year from the grant date.

Stock-based compensation expense of $ 744,000 and $ 699,000 for the quarters ended March 31, 2023 and 2022, respectively, was recognized in compensation expense relating to our stock benefit plans.

At March 31, 2023, there was compensation expense of $ 643,000 to be recognized for awarded but unvested stock options, $ 3.4 million for unvested restricted common shares, $ 4.3 million to be recognized for awarded but unvested RSUs, $ 470,000 to be recognized for awarded but unvested RSAs, and $ 2.7 million to be recognized for awarded but unvested PSUs.

Stock-based compensation expense of $ 1.3 million and $ 1.4 million for the quarters ended June 30, 2023 and 2022, respectively, was recognized in compensation expense relating to our stock benefit plans.

At June 30, 2023, there was compensation expense of $ 532,000 to be recognized for awarded but unvested stock options, $ 2.7 million for unvested restricted common shares, $ 4.1 million to be recognized for awarded but unvested RSUs, $ 300,000 to be recognized for awarded but unvested RSAs, and $ 2.3 million to be recognized for awarded but unvested PSUs.

Income Taxes-Uncertain Tax Positions

2 unchanged sentences

The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information.

We had $ 473,000 of liability for unrecognized tax benefits as of both March 31, 2023 and December 31, 2022.

We had $ 473,000 of liability for unrecognized tax benefits as of both June 30, 2023 and December 31, 2022.

We recognize interest accrued related to:

14 unchanged sentences

This change did not have a material effect on our consolidated financial statements.

In March 2020, the FASB issued Accounting Standards Update (“ASU”) No.

2020-04, “ Facilitation of the Effects of Reference Rate Reform on Financial Reporting .” This ASU provides temporary optional guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates.

The guidance provides expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met.

The amendments primarily include contract modifications and hedge accounting, as well as providing a one-time election for the sale or transfer of debt securities classified as held-to-maturity.

This guidance was effective as of March 12, 2020 through December 31, 2022.

In December 2022, the FASB issued ASU No.

2022-06, “Reference Rate Reform (Topic 848):

Deferral of the Sunset Date to Topic 848”.

This guidance extends the guidance of ASU 2022-04 from December 31, 2022 to December 31, 2024.

In January 2021, the FASB issued ASU No.

2021-01, “Reference Rate Reform.” This ASU provides amendments, which are elective, and apply to all entities that have derivative instruments that use an interest rate for margining, discounting or contract price alignment of certain derivative instruments that are modified as a result of the reference rate reform.

This ASU is effective upon issuance through December 31, 2024, and can be adopted at any time during this period.

During the quarter-ended June 30, 2023, we completed our LIBOR transition plan and modified the Company’s loan and other financial instrument contracts that are impacted by the transition.

The Company chose the Secured Overnight Financing Rate (“SOFR”) as its alternative replacement for LIBOR on both back-to-back swaps and variable rate loans.

There was no material impact to the Company's financial statements as a result of the transition.

(2) Marketable Securities

The following table shows the portfolio of marketable securities available-for-sale at March 31, 2023 (in thousands):

The following table shows the portfolio of marketable securities available-for-sale at June 30, 2023 (in thousands):

Debt issued by the U.S government and agencies:

40 unchanged sentences

Total marketable securities available-for-sale $ 1,431,728 105 ( 213,725 ) 1,218,108

The following table shows the portfolio of marketable securities held-to-maturity at March 31, 2023 (in thousands):

The following table shows the portfolio of marketable securities held-to-maturity at June 30, 2023 (in thousands):

Debt issued by government-sponsored enterprises:

19 unchanged sentences

Total marketable securities held-to-maturity $ 881,249 — ( 129,865 ) 751,384

The following table shows the contractual maturity of our residential mortgage-backed securities available-for-sale at March 31, 2023 (in thousands):

The following table shows the contractual maturity of our residential mortgage-backed securities available-for-sale at June 30, 2023 (in thousands):

Residential mortgage-backed securities:

4 unchanged sentences

Total residential mortgage-backed securities $ 1,074,494 893,719

The following table shows the contractual maturity of our residential mortgage-backed securities held-to-maturity at March 31, 2023 (in thousands):

The following table shows the contractual maturity of our residential mortgage-backed securities held-to-maturity at June 30, 2023 (in thousands):

Residential mortgage-backed securities:

3 unchanged sentences

Total residential mortgage-backed securities $ 723,389 614,347

The following table shows the fair value of and gross unrealized losses on available for sale investment securities and held to maturity investment securities, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2023 (in thousands):

Less than 12 months 12 months or more Total

17 unchanged sentences

Total $ 448,576 ( 27,487 ) 1,509,214 ( 316,103 ) 1,957,790 ( 343,590 )

The Company does not believe that the available-for-sale debt securities that were in an unrealized loss position as of March 31, 2023, which were comprised of 632 individual securities, represents a credit loss impairment.

The Company does not believe that the available-for-sale debt securities that were in an unrealized loss position as of June 30, 2023, which were comprised of 543 individual securities, represents a credit loss impairment.

All of these securities were issued by U.S.

13 unchanged sentences

government, are highly rated by major rating agencies and have a long history of no credit losses.

The decline in fair value of the held-to-maturity debt securities were primarily attributable to changes in the interest rate environment and not due to the credit quality of these investment securities, therefore, the Company did not record an allowance for credit losses for these securities as of March 31, 2023.

The following table presents the credit quality of our held-to-maturity securities, based on the latest information available as of March 31, 2023 (in thousands).

The credit ratings are sourced from nationally recognized rating agencies, which include Moody’s and S&P, they are presented based on asset type.

All of our held-to-maturity securities were current in their payment of principal and interest as of March 31, 2023.

The following table presents the credit quality of our held-to-maturity securities, based on the latest information available as of June 30, 2023 (in thousands).

The credit ratings are sourced from nationally recognized rating agencies, which include Moody’s and S&P, and they are presented based on asset type.

All of our held-to-maturity securities were current in their payment of principal and interest as of June 30, 2023.

Held-to-maturity securities (at amortized cost):

4 unchanged sentences

(3) Loans Receivable

The following table shows a summary of our loans receivable at amortized cost basis at March 31, 2023 and December 31, 2022 (in thousands):

March 31, 2023 December 31, 2022

The following table shows a summary of our loans receivable at amortized cost basis at June 30, 2023 and December 31, 2022 (in thousands):

June 30, 2023 December 31, 2022

Originated (1) Acquired (2) Total Originated (1) Acquired (2) Total

15 unchanged sentences

(2) Includes loans subject to purchase accounting in a business combination.

(3) Includes $ 6.4 million and $ 9.9 million of loans held-for-sale at March 31, 2023 and December 31, 2022, respectively.

(4) Includes $ 619,000 and $ 0 of loans held-for-sale at March 31, 2023 and December 31, 2022, respectively.

(5) Includes $ 78.3 million and $ 76.1 million of net unearned income, unamortized premiums and discounts and deferred fees and costs at March 31, 2023 and December 31, 2022, respectively.

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the quarter ended March 31, 2023 (in thousands):

Balance as of March 31, 2023 Current period provision Charge-offs Recoveries ASU 2022-02 Adoption Balance as of December 31, 2022

(3) Includes $ 16.1 million and $ 9.9 million of loans held-for-sale at June 30, 2023 and December 31, 2022, respectively.

(4) Includes $ 75.8 million and $ 76.1 million of net unearned income, unamortized premiums and discounts and deferred fees and costs at June 30, 2023 and December 31, 2022, respectively.

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the quarter ended June 30, 2023 (in thousands):

Balance as of June 30, 2023 Current period provision Charge-offs Recoveries Balance as of March 31, 2023

Allowance for Credit Losses

22 unchanged sentences

Total off-balance sheet exposure $ 15,959 2,920 — — 13,039

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the quarter ended June 30, 2022 (in thousands):

Balance as of June 30, 2022 Current period provision Charge-offs Recoveries Balance as of March 31, 2022

Allowance for Credit Losses

Personal Banking:

Residential mortgage loans $ 16,158 2,723 ( 138 ) 267 13,306

Home equity loans 5,232 ( 583 ) ( 255 ) 427 5,643

Vehicle loans 15,738 1,888 ( 934 ) 603 14,181

Consumer loans 779 ( 1,685 ) ( 978 ) 333 3,109

Total Personal Banking 37,907 2,343 ( 2,305 ) 1,630 36,239

Commercial Banking:

Commercial real estate loans 39,641 ( 1,917 ) ( 4,392 ) 1,378 44,572

Commercial real estate loans - owner occupied 4,095 ( 188 ) — 7 4,276

Commercial loans 16,712 2,391 ( 329 ) 442 14,208

Total Commercial Banking 60,448 286 ( 4,721 ) 1,827 63,056

Total $ 98,355 2,629 ( 7,026 ) 3,457 99,295

Allowance for Credit Losses - off-balance sheet exposure

Personal Banking:

Residential mortgage loans $ 6 — — — 6

Home equity loans 64 9 — — 55

Total Personal Banking 70 9 — — 61

Commercial Banking:

Commercial real estate loans 3,463 1,671 — — 1,792

Commercial real estate loans - owner occupied 328 120 — — 208

Commercial loans 3,589 1,596 — — 1,993

Total Commercial Banking 7,380 3,387 — — 3,993

Total off-balance sheet exposure $ 7,450 3,396 — — 4,054

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the six months ended June 30, 2023 (in thousands):

2023 Current period provision Charge-offs Recoveries ASU 2022-02 Adoption Balance December 31, 2022

Allowance for Credit Losses

Personal Banking:

Residential mortgage loans $ 17,556 ( 1,677 ) ( 752 ) 724 — 19,261

Home equity loans 5,002 ( 906 ) ( 399 ) 405 — 5,902

Vehicle loans 27,283 6,283 ( 3,207 ) 1,148 — 23,059

Consumer loans 1,010 2,027 ( 2,299 ) 617 — 665

Total Personal Banking 50,851 5,727 ( 6,657 ) 2,894 — 48,887

Commercial Banking:

Commercial real estate loans 50,056 4,697 ( 1,072 ) 1,499 426 44,506

Commercial real estate loans - owner occupied 3,498 ( 485 ) ( 68 ) 47 — 4,004

Commercial loans 20,018 941 ( 2,074 ) 512 — 20,639

Total Commercial Banking 73,572 5,153 ( 3,214 ) 2,058 426 69,149

Total $ 124,423 10,880 ( 9,871 ) 4,952 426 118,036

Allowance for Credit Losses - off-balance sheet exposure (1)

Personal Banking:

Residential mortgage loans $ 4 — — — — 4

Home equity loans 64 ( 10 ) — — — 74

Total Personal Banking 68 ( 10 ) — — — 78

Commercial Banking:

Commercial real estate loans 7,655 2,280 — — — 5,375

Commercial real estate loans - owner occupied 320 ( 59 ) — — — 379

Commercial loans 7,916 835 — — — 7,081

Total Commercial Banking 15,891 3,056 — — — 12,835

Total off-balance sheet exposure $ 15,959 3,046 — — — 12,913

(1) The table above has been revised to reflect the correct ending balance for total off-balance-sheet exposure at December 31, 2022.

We evaluated the effect of the revision, both qualitatively and quantitatively, and concluded that the impact of the revision was not material.

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the quarter ended March 31, 2022 (in thousands):

Balance as of March 31, 2022 Current period provision Charge-offs Recoveries Balance as of December 31, 2021

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the six months ended June 30, 2022 (in thousands):

Balance as of June 30, 2022 Current period provision Charge-offs Recoveries Balance as of December 31, 2021

Allowance for Credit Losses

11 unchanged sentences

Total $ 98,355 1,148 ( 12,084 ) 7,050 102,241

Allowance for Credit Losses - off-balance sheet exposure

Allowance for Credit Losses -

off-balance sheet exposure

Personal Banking:

8 unchanged sentences

Total off-balance sheet exposure $ 7,450 4,992 — — 2,458

During the quarter ended March 31, 2022, the Company purchased a $ 72.7 million small business equipment finance loan pool and a $ 138.1 million one- to four-family jumbo mortgage loan pool.

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at March 31, 2023 (in thousands):

During the six months ended June 30, 2022, the Company purchased a total of $ 115.8 million small business equipment finance loan pools and a total of $ 188.3 million one- to four-family jumbo mortgage loan pools.

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at June 30, 2023 (in thousands):

receivable Allowance for

33 unchanged sentences

We present the amortized cost of our loans on nonaccrual status including such loans with no allowance.

The following table presents the amortized cost of our loans on nonaccrual status as of the beginning and end of the quarter ended March 31, 2023 (in thousands):

March 31, 2023

The following table presents the amortized cost of our loans on nonaccrual status as of the beginning and end of the period ended June 30, 2023 (in thousands):

June 30, 2023

Nonaccrual loans at January 1, 2023 Nonaccrual loans with an allowance Nonaccrual loans with no allowance Total nonaccrual loans at the end of the period Loans 90 days past due and accruing

11 unchanged sentences

Total $ 81,236 40,951 37,638 78,589 532

During the quarter ended March 31, 2023, we did no t recognize interest income on nonaccrual loans.

During the three and six months ended June 30, 2023, we did no t recognize interest income on nonaccrual loans.

The following table presents the amortized cost of our loans on nonaccrual status as of the year ended December 31, 2022 (in thousands):

14 unchanged sentences

During the year ended December 31, 2022, we recognized $ 678,000 of interest income on nonaccrual and troubled debt restructuring loans.

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of March 31, 2023 (in thousands):

Real estate Equipment Total

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2023 (in thousands):

Real estate Total

Commercial Banking:

21 unchanged sentences

The combination is at least two of the following:

a term extension, principal forgiveness, an other-than-insignificant payment delay, and/or an interset rate reduction.

The following table presents the amortized cost basis of loans as of March 31, 2023 that were both experiencing financial difficulty and modified during the quarter ended March 31, 2023, by class and by type of modification.

a term extension, principal forgiveness, an other-than-insignificant payment delay, and/or an interest rate reduction.

The following table presents the amortized cost basis of loans as of June 30, 2023 that were both experiencing financial difficulty and modified during the periods indicated, by class and by type of modification.

The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financial receivable is also presented below.

Term extension Combination term extension and interest rate reduction Total class of financing receivable

For the quarter ended June 30, 2023 For the six months ended June 30, 2023

Term extension Total class of financing receivable Term extension Combination term extension and interest rate reduction Total class of financing receivable

Personal Banking:

3 unchanged sentences

Consumer loans

— — % — 3 — %

Total Personal Banking 200 — % 428 3 0.01 %

5 unchanged sentences

The Company has committed to lend additional amounts totaling $ 31,000 to the borrowers included in the previous table.

The following table presents the effect of the loan modifications presented above to borrowers experiencing financial difficulty for the quarter ended March 31, 2023:

Weighted-average interest rate reduction Weighted-average term extension in months

The following table presents the effect of the loan modifications presented above to borrowers experiencing financial difficulty for the periods indicated:

For the quarter ended June 30, 2023 For the six months ended June 30, 2023

Weighted-average term extension in months Weighted-average interest rate reduction Weighted-average term extension in months

Personal Banking:

9 unchanged sentences

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

All loans modified since the adoption of ASU 2022-02 are current on their payments as of March 31, 2023.

No loans modified since the adoption of ASU 2022-02 subsequently defaulted during the quarter ended March 31, 2023.

The following table presents the performance of loans that such loans have been modified since the adoption of ASU 2022-02:

Current 30-59 days

delinquent 60-89 days

delinquent 90 days or

Personal Banking:

Residential mortgage loans $ 262 — — —

Home equity loans 166 — — —

Consumer loans 3 — — —

Total Personal Banking 431 — — —

Commercial Banking:

Commercial real estate loans 81 139 — —

Commercial loans — 660 — —

Total Commercial Banking 81 799 — —

Total loans $ 512 799 — —

No loans modified since the adoption of ASU 2022-02 subsequently defaulted during the quarter ended June 30, 2023.

The modifications to borrowers experiencing financial distress are included in their respective portfolio segment and the current loan balance and updated loan terms are run through their respective ACL models to arrive at the quantitative portion of the ACL.

3 unchanged sentences

Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

The following table provides a roll forward of troubled debt restructurings for the period indicated, prior to the adoption of ASU 2022-02 (dollars in thousands):

For the quarter ended March 31, 2022

contracts Amount

The following tables provide a roll forward of troubled debt restructurings for the periods indicated, prior to the adoption of ASU 2022-02 (dollars in thousands):

For the quarter ended June 30, 2022 For the six months ended June 30, 2022

contracts Amount Number of Contracts Amount

Beginning TDR balance:

130 $ 28,701 134 $ 30,288

New TDRs 2 26,115 2 26,115

Re-modified TDRs 5 6,403 6 6,603

5 unchanged sentences

Commercial real estate loans 2 ( 80 ) 3 ( 369 )

Commercial loans 1 ( 7 ) 1 ( 7 )

Ending TDR balance:

128 $ 54,237 128 $ 54,237

Accruing TDRs $ 16,590 $ 16,590

1 unchanged sentence

The following table provides information related to TDRs (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated, prior to the adoption of ASU 2022-02 (in thousands):

For the quarter ended March 31, 2022

For the quarter ended June 30, 2022 For the six months ended June 30, 2022

contracts Recorded

2 unchanged sentences

investment Current

allowance Number of

contracts Recorded

at the time of

modification Current

investment Current

Commercial Banking:

Commercial real estate loans 3 $ 58,042 29,292 1,122 4 $ 58,372 29,492 1,133

Commercial loans 4 3,524 3,226 410 4 3,524 3,226 411

Total Commercial Banking 7 61,566 32,518 1,532 8 61,896 32,718 1,544

Total 7 $ 61,566 32,518 1,532 8 $ 61,896 32,718 1,544

The following table provides information as of March 31, 2022 for TDRs (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended March 31, 2022, prior to the adoption of ASU 2022-02 (in thousands):

The following table provides information as of June 30, 2022 for TDRs (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended June 30, 2022, prior to the adoption of ASU 2022-02 (in thousands):

Type of modification

Number of contracts Maturity date Total

Number of contracts Rate Maturity date Total

Commercial Banking:

Commercial real estate loans 3 $ 4,179 25,113 29,292

Commercial loans 4 — 3,226 3,226

Total Commercial Banking 7 4,179 28,339 32,518

Total 7 $ 4,179 28,339 32,518

The following table provides information related to troubled debt restructurings modified within the previous twelve months of March 31, 2022 that subsequently defaulted, prior to the adoption of ASU 2022-02:

The following table provides information as of June 30, 2022 for TDRs (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the six months ended June 30, 2022, prior to the adoption of ASU 2022-02 (in thousands):

Type of modification

Number of contracts Rate Maturity date Total

Commercial Banking:

Commercial real estate loans 4 $ 4,179 25,313 29,492

Commercial loans 4 — 3,226 3,226

Total Commercial Banking 8 4,179 28,539 32,718

Total 8 $ 4,179 28,539 32,718

The following table provides information related to troubled debt restructurings modified within the previous twelve months of June 30, 2022 that subsequently defaulted, prior to the adoption of ASU 2022-02:

contracts Recorded

6 unchanged sentences

Total 1 $ 4,167 3,823 —

The following table provides information related to the amortized cost basis of loan payment delinquencies at March 31, 2023 (in thousands):

The following table provides information related to the amortized cost basis of loan payment delinquencies at June 30, 2023 (in thousands):

delinquent 60-89 days

66 unchanged sentences

These loans are generally charged-off in the month in which the 180 day period elapses.

The following table presents the amortized cost basis of our loan portfolio by year of origination and credit quality indicator and the current period charge-offs by year of origination for each portfolio segment as of March 31, 2023 (in thousands):

YTD March 31, 2023 2022 2021 2020 2019 Prior Revolving loans Revolving loans converted to term loans Total loans

YTD June 30, 2023 2022 2021 2020 2019 Prior Revolving loans Revolving loans converted to term loans Total loans

Personal Banking:

41 unchanged sentences

Total loans $ 942,633 2,538,253 1,943,959 1,289,452 838,698 2,597,912 1,039,517 80,807 11,271,231

For the quarter ended March 31, 2023, $ 4.9 million of revolving loans were converted to term loans.

For the six months ended June 30, 2023, $ 10.0 million of revolving loans were converted to term loans.

The following table presents the amortized cost basis of our loan portfolio by year of origination and credit quality indicator for each portfolio segment as of December 31, 2022 (in thousands):

39 unchanged sentences

The following table provides information for intangible assets subject to amortization at the dates indicated (in thousands):

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Amortizable intangible assets:

6 unchanged sentences

Total intangible assets - net $ 6,809 8,560

The following table shows the actual aggregate amortization expense for the quarters ended March 31, 2023 and 2022, as well as the estimated aggregate amortization expense, based upon current levels of intangible assets, for the current fiscal year and each of the five succeeding fiscal years (in thousands):

For the quarter ended March 31, 2023 $ 909

For the quarter ended March 31, 2022 1,183

The following table shows the actual aggregate amortization expense for the quarters ended June 30, 2023 and 2022, as well as the estimated aggregate amortization expense, based upon current levels of intangible assets, for the current fiscal year and each of the five succeeding fiscal years (in thousands):

For the quarter ended June 30, 2023 $ 842

For the quarter ended June 30, 2022 1,115

For the six months ended June 30, 2023 1,751

For the six months ended June 30, 2022 2,298

For the year ending December 31, 2023 3,270

5 unchanged sentences

Balance at December 31, 2022 $ 380,997

Balance at March 31, 2023 $ 380,997

We performed our annual goodwill impairment test as of June 30, 2022 in accordance with ASC 350, as updated by ASU 2017-04 (“Step 0”), and concluded that goodwill was not impaired.

As of March 31, 2023, there were no events or changes in circumstances that would cause us to update that goodwill impairment test and we have concluded there is no impairment of goodwill.

Balance at June 30, 2023 $ 380,997

We performed our annual goodwill impairment test as of June 30, 2023 in accordance with ASC 350 and concluded that goodwill was not impaired.

(5) Borrowed Funds

(a) Borrowings

Borrowed funds at March 31, 2023 and December 31, 2022 are presented in the following table:

March 31, 2023 December 31, 2022

Borrowed funds at June 30, 2023 and December 31, 2022 are presented in the following table:

June 30, 2023 December 31, 2022

Amount Average rate Amount Average rate

5 unchanged sentences

Borrowings from the Federal Home Loan Bank (“FHLB”) of Pittsburgh, if any, are secured by our residential first mortgage and other qualifying loans.

At June 30, 2023, the carrying value of these loans was $ 6.013 billion.

Certain of these borrowings are subject to restrictions or penalties in the event of prepayment.

1 unchanged sentence

The rate is adjusted daily by the FHLB of Pittsburgh, and any borrowings on this line may be repaid at any time without penalty.

At March 31, 2023 and December 31, 2022, the balance of the revolving line of credit was $ 183.7 million and $ 51.3 million, respectively.

At March 31, 2023 and December 31, 2022, collateralized borrowings due within one year were $ 83.3 million and $ 105.8 million, respectively.

At June 30, 2023 and December 31, 2022, the balance of the revolving line of credit was $ 28.0 million and $ 51.3 million, respectively.

At June 30, 2023 and December 31, 2022, collateralized borrowings due within one year were $ 63.9 million and $ 105.8 million, respectively.

These borrowings are collateralized by cash or various securities held in safekeeping by the FHLB.

At March 31, 2023 and December 31, 2022, collateral received was $ 18.7 million and $ 24.1 million, respectively.

At June 30, 2023, the carrying value of the cash and securities used as collateral was $ 94.6 million.

At June 30, 2023 and December 31, 2022, collateral received was $ 40.5 million and $ 24.1 million, respectively.

This represents collateral posted to us from our derivative counterparties.

At March 31, 2023 and December 31, 2022, term notes payable to the FHLB of Pittsburgh due within one year were $ 403.0 million and $ 500.0 million, respectively.

The March 31, 2023 total is made up of five advances:

$ 3.0 million at 5.20 % maturing April 3, 2023;

$ 100.0 million at 5.27 % maturing April 7, 2023;

$ 100.0 million at 5.15 % maturing April 14, 2023;

$ 100.0 million at 5.15 % maturing April 21, 2023;

and $ 100.0 million at 5.13 % maturing April 28, 2023.

At each of the periods ended June 30, 2023 and December 31, 2022, term notes payable to the FHLB of Pittsburgh due within one year were $ 500.0 million.

The June 30, 2023 total is made up of eight advances:

$ 100.0 million at 5.52 % maturing July 7, 2023;

$ 100.0 million at 5.37 % maturing July 14, 2023;

$ 100.0 million at 5.39 % maturing July 21, 2023;

$ 100.0 million at 5.39 % maturing July 28, 2023;

$ 25.0 million at 5.46 % maturing August 11, 2023;

$ 25.0 million at 5.45 % maturing August 14, 2023;

$ 25.0 million at 5.48 % maturing August 21, 2023;

and $ 25.0 million at 5.51 % maturing August 31, 2023.

On September 9, 2020, the Company issued $ 125.0 million of 4.00 % fixed-to-floating rate subordinated notes with a maturity date of September 15, 2030.

2 unchanged sentences

The subordinated debt issuance costs of approximately $ 1.8 million are being amortized over five years on a straight-line basis into interest expense.

At March 31, 2023 and December 31, 2022, subordinated debentures, net of issuance costs, were $ 113.9 million and $ 113.8 million, respectively.

At June 30, 2023 and December 31, 2022, subordinated debentures, net of issuance costs, were $ 114.0 million and $ 113.8 million, respectively.

(b) Trust Preferred Securities

7 unchanged sentences

The following table sets forth a summary of the cumulative trust preferred securities and the junior subordinated debt held by the Trust as of the date listed.

Maturity date Interest rate Capital debt securities March 31, 2023 December 31, 2022

Maturity date Interest rate Capital debt securities June 30, 2023 December 31, 2022

Northwest Bancorp Capital Trust III December 30, 2035 3-month LIBOR plus 1.38 %

22 unchanged sentences

All or part of the debentures may be redeemed at any time.

Also, the debentures may be redeemed at any time if existing laws or regulations, or the interpretation or application of these laws or regulations, change causing:

Also, the debentures

may be redeemed at any time if existing laws or regulations, or the interpretation or application of these laws or regulations, change causing:

• the interest on the debentures to no longer be deductible by the Company for federal income tax purposes;

10 unchanged sentences

Collateral may be obtained based on management’s credit assessment of the customer.

At March 31, 2023, the maximum potential amount of future payments we could be required to make under these non-recourse standby letters of credit was $ 44.8 million, of which $ 31.2 million is fully collateralized.

At March 31, 2023, we had a liability which represents deferred income of $ 917,000 related to the standby letters of credit.

At June 30, 2023, the maximum potential amount of future payments we could be required to make under these non-recourse standby letters of credit was $ 39.9 million, of which $ 26.3 million is fully collateralized.

At June 30, 2023, we had a liability which represents deferred income of $ 870,000 related to the standby letters of credit.

In addition, we maintain a $ 5.0 million unsecured line of credit with a correspondent bank for private label credit card facilities for certain existing commercial clients of the Bank, of which $ 2.2 million in notional value of credit cards have been issued.

These issued credit cards had an outstanding balance of $ 125,000 at March 31, 2023.

These issued credit cards had an outstanding balance of $ 443,000 at June 30, 2023.

The clients of the Bank are responsible for repaying any balances due on these credit cards directly to the correspondent bank;

4 unchanged sentences

The following table sets forth the computation of basic and diluted EPS (in thousands, except share data and per share amounts):

Quarter ended March 31,

Quarter ended June 30, Six months ended June 30,

2023 2022 2023 2022

Net income $ 33,044 33,426 66,723 61,713

8 unchanged sentences

The following table sets forth the net periodic costs for the defined benefit pension plans and post-retirement healthcare plans for the periods indicated (in thousands):

Quarter ended March 31,

Quarter ended June 30,

Pension benefits Other post-retirement benefits

6 unchanged sentences

Net periodic cost $ ( 218 ) 223 17 12

Six months ended June 30,

Pension benefits Other post-retirement benefits

2023 2022 2023 2022

Service cost $ 3,120 5,198 — —

Interest cost 4,490 3,342 14 20

Expected return on plan assets ( 6,958 ) ( 7,728 ) — —

Amortization of prior service cost ( 1,128 ) ( 1,128 ) — —

Amortization of the net loss 40 762 20 4

Net periodic cost $ ( 436 ) 446 34 24

Because of the current funding status, we do not anticipate a funding requirement during the year ending December 31, 2023.

58 unchanged sentences

The fair value of forward sale commitments is based on quoted prices from the secondary market based on the settlement date of the contracts.

Interest Rate and Foreign Exchange Swap Agreements and Risk Participation Agreements

Cash Flow Hedges, Interest Rate and Foreign Exchange Swap Agreements and Risk Participation Agreements

The fair value of interest rate swaps is based upon the present value of the expected future cash flows using the SOFR discount curve, the basis for the underlying interest rate.

13 unchanged sentences

Commitments to extend credit are generally short-term in nature and, if drawn upon, are issued under current market terms.

At March 31, 2023 and December 31, 2022, there was no significant unrealized appreciation or depreciation on these financial instruments.

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the Consolidated Statement of Financial Condition at March 31, 2023 (in thousands):

At June 30, 2023 and December 31, 2022, there was no significant unrealized appreciation or depreciation on these financial instruments.

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the Consolidated Statement of Financial Condition at June 30, 2023 (in thousands):

amount Estimated

10 unchanged sentences

Foreign exchange swaps 5 5 — 5 —

Interest rate swaps designated as hedging instruments 2,244 2,244 — 2,244 —

Interest rate swaps not designated as hedging instruments 45,851 45,851 — 45,851 —

39 unchanged sentences

Fair value estimates are made at a point-in-time, based on relevant market data and information about the instrument.

The methods and assumptions detailed above were used in estimating the fair value of financial instruments at both March 31, 2023 and December 31, 2022.

The following table represents assets and liabilities measured at fair value on a recurring basis at March 31, 2023 (in thousands):

The methods and assumptions detailed above were used in estimating the fair value of financial instruments at both June 30, 2023 and December 31, 2022.

The following table represents assets and liabilities measured at fair value on a recurring basis at June 30, 2023 (in thousands):

Level 1 Level 2 Level 3 Total assets

19 unchanged sentences

Foreign exchange swaps — 5 — 5

Interest rate swaps designated as hedging instruments — 2,244 — 2,244

Interest rate swaps not designated as hedging instruments — 45,851 — 45,851

32 unchanged sentences

The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis (in thousands):

For the quarter ended March 31,

Beginning balance January 1, $ 559 1,684

For the quarter ended June 30, For the six months ended June 30,

2023 2022 2023 2022

Beginning balance, $ 386 1,680 559 1,684

Interest rate lock commitments:

2 unchanged sentences

Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as loans held-for-sale, loans individually assessed, real estate owned, and mortgage servicing rights.

The following table represents the fair market measurement for only those nonrecurring assets that had a fair market value below the carrying amount as of March 31, 2023 (in thousands):

The following table represents the fair market measurement for only those nonrecurring assets that had a fair market value below the carrying amount as of June 30, 2023 (in thousands):

Level 1 Level 2 Level 3 Total assets

23 unchanged sentences

We classify real estate owned as nonrecurring Level 3.

The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at March 31, 2023 (in thousands):

Fair value Valuation techniques Significant

13 unchanged sentences

We believe that the credit risk inherent in all of our derivative contracts is minimal based on our credit standards and the netting and collateral provisions of the interest rate swap agreements.

Derivatives Designated as Hedging Instruments

During May 2023, the Company entered into four separate pay-fixed interest rate swaps in order to synthetically convert short-term three month FHLB advances to fixed-rate term funding with an aggregate value of $ 100 million with maturities ranging from three to five years .

Our risk management objective and strategy for these interest rate swaps at such time was to reduce our exposure to variability in interest-related cash outflows attributable to changes in the USD-SOFR swap rate, the designated benchmark interest rate being hedged.

Based upon our contemporaneous quantitative analysis at the inception of the interest rate swaps, we have determined these interest rate swaps qualifies for hedge accounting in accordance with ASC 815, Derivatives and Hedging .

Our cash flow hedges are recorded within other assets on the Consolidated Statement of Financial Condition at their estimated fair value.

As long as the hedge remains highly effective the changes in the fair value of derivatives designated, and that qualify, as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.

A hedging relationship that is determined to not be highly effective no longer qualifies for hedge accounting and any gain or loss is recognized immediately into earnings.

Amount reclassified into earnings are included in interest expense in the Consolidated Statement of Income.

Derivatives Not Designated as Hedging Instruments

14 unchanged sentences

The risk participation agreements provide credit protection to the financial institution should the borrower fail to perform on its interest rate derivative contract with the financial institution.

These risk participation agreements are recorded within other liabilities on the Consolidated Statement of Financial Condition at their estimated fair value.

Changes to the fair value of the the risk participation agreements are included in other operating income in the Consolidated Statement of Income.

The following table presents information regarding our derivative financial instruments for the periods indicated (in thousands):

1 unchanged sentence

Notional amount Fair value Notional amount Fair value

At March 31, 2023

At June 30, 2023

Derivatives designed as hedging instruments:

Interest rate swap agreements $ 100,000 2,244 — —

Derivatives not designated as hedging instruments:

14 unchanged sentences

The following table presents income or expense recognized on derivatives for the periods indicated (in thousands):

For the quarter ended March 31,

For the quarter ended June 30, For the six months ended June 30,

2023 2022 2023 2022

Hedging derivatives:

Decrease in interest expense $ ( 203 ) — ( 203 ) —

Non-hedging swap derivatives:

(Decrease)/increase in other income $ ( 128 ) 53 ( 330 ) 114

Increase in mortgage banking income 174 418

Increase/(decrease) in mortgage banking income $ 349 ( 96 ) 176 322

The following table presents information regarding our derivative financial instruments designated as hedging for the quarter ended June 30, 2023 (in thousands):

Notional amount Effective rate Estimated increase/(decrease) to interest expense in the next twelve months Maturity date Remaining term

Interest rate products:

Issued May 11, 2023 $ 25,000 3.59 % ( 523 ) 5/11/2027 47

Issued May 12, 2023 25,000 3.62 % ( 510 ) 5/12/2028 59

Issued May 19, 2023 25,000 3.95 % ( 435 ) 11/19/2027 53

Issued May 25, 2023 25,000 4.18 % ( 380 ) 11/30/2026 41

Total $ 100,000 ( 1,848 )

(11) Legal Proceedings

We establish accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated.

As of March 31, 2023, we do not anticipate that the aggregate ultimate liability arising out of any pending or threatened legal proceedings will be material to our Consolidated Financial Statements.

As of June 30, 2023, we do not anticipate that the aggregate ultimate liability arising out of any pending or threatened legal proceedings will be material to our Consolidated Financial Statements.

Any such accruals are adjusted thereafter as appropriate to reflect changes in circumstances.

2 unchanged sentences

The following tables show the changes in accumulated other comprehensive income by component for the periods indicated (in thousands):

For the quarter ended March 31, 2023

For the quarter ended June 30, 2023

on securities

available-for-sale Change in

rate swaps Change in

defined benefit

pension plans Total

Balance as of December 31, 2022 $ ( 164,206 ) ( 6,952 ) ( 171,158 )

Other comprehensive income before reclassification adjustments (1) 13,017 — 13,017

Balance as of March 31, 2023 $ ( 151,189 ) — ( 7,334 ) ( 158,523 )

Other comprehensive (loss)/income before reclassification adjustments (1) (3) ( 17,719 ) 1,737 — ( 15,982 )

Amounts reclassified from accumulated other comprehensive income (2) (4) 5,636 — ( 382 ) 5,254

Net other comprehensive income 13,017 ( 382 ) 12,635

Net other comprehensive (loss)/income ( 12,083 ) 1,737 ( 382 ) ( 10,728 )

Balance as of June 30, 2023 $ ( 163,272 ) 1,737 ( 7,716 ) ( 169,251 )

For the quarter ended June 30, 2022

on securities

available-for-sale Change in

defined benefit

pension plans Total

Balance as of March 31, 2022 $ ( 77,101 ) ( 25,443 ) ( 102,544 )

For the quarter ended March 31, 2022

gains/(losses)

Other comprehensive loss before reclassification adjustments (5) ( 39,954 ) — ( 39,954 )

Amounts reclassified from accumulated other comprehensive income (6) (7) ( 1 ) ( 131 ) ( 132 )

Net other comprehensive (loss)/income ( 39,955 ) ( 131 ) ( 40,086 )

Balance as of June 30, 2022 $ ( 117,056 ) ( 25,574 ) ( 142,630 )

(1) Consists of unrealized holding losses, net of tax of $ 3,771 .

(2) Consists of realized losses, net of tax of ($ 1,731 ).

(3) Change in fair value of interest rate swaps, net of tax ($ 508 ).

(4) Consists of realized gains, net of tax of $ 152 .

(5) Consists of unrealized holding losses, net of tax $ 11,973 .

(6) Consists of realized gains, net of tax $ 0 .

(7) Consists of realized gains, net of tax of $ 51 .

For the six months ended June 30, 2023

gains and losses

on securities

available-for-sale Change in

rate swaps Change in

defined benefit

1 unchanged sentence

Balance as of December 31, 2022 $ ( 164,206 ) — ( 6,952 ) ( 171,158 )

Other comprehensive loss before reclassification adjustments (3) ( 64,783 ) — ( 64,783 )

Other comprehensive (loss)/income before reclassification adjustments (1) (3) ( 4,702 ) 1,737 — ( 2,965 )

Amounts reclassified from accumulated other comprehensive income (2) (4) 5,636 — ( 764 ) 4,872

Net other comprehensive income/(loss) 934 1,737 ( 764 ) 1,907

Balance as of June 30, 2023 $ ( 163,272 ) 1,737 ( 7,716 ) ( 169,251 )

For the six months ended June 30, 2022

on securities

available-for-sale Change in

defined benefit

pension plans Total

Balance as of December 31, 2021 $ ( 12,317 ) ( 25,312 ) ( 37,629 )

Other comprehensive (loss)/income before reclassification adjustments (5) ( 104,737 ) — ( 104,737 )

Amounts reclassified from accumulated other comprehensive income (6) (7) ( 2 ) ( 262 ) ( 264 )

Net other comprehensive (loss)/income ( 104,739 ) ( 262 ) ( 105,001 )

Balance as of March 31, 2022 $ ( 77,101 ) ( 25,443 ) ( 102,544 )

(1) Consists of unrealized holding gains, net of tax of ($ 3,308 ).

Balance as of June 30, 2022 $ ( 117,056 ) ( 25,574 ) ( 142,630 )

(1) Consists of unrealized holding losses, net of tax of $ 463 .

(2) Consists of realized losses, net of tax of ($ 1,731 ).

(3) Change in fair value of interest rate swaps, net of tax ($ 508 ).

(4) Consists of realized gains, net of tax of $ 304 .

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements