Northwest Bancshares, Inc.NWBI

Northwest Bancshares, Inc. Segments Disclosure

10-KFiled Feb 25, 20263 min read
Segment Information
The Company’s reportable segment is determined by the Chief Executive Officer, who is the designated chief operating decision maker, based upon information provided about the Company’s products and services offered, primarily banking operations. Our one operating segment, Banking, is also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of the various components of the business such as branches and lending, which are then
aggregated because operating performance, products/services and customers are similar. The chief operating decision maker will evaluate the financial performance of the Company’s business components such as by evaluating revenue streams, significant expenses and budget to actual results in assessing the Company’s segment and in the determination of allocating resources. The information reviewed is on a consolidated basis and discrete financial information is not available. The chief operating decision maker uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The chief operating decision maker uses consolidated net income through return on average assets and return on average equity and the efficiency ratio, as well as loan growth to benchmark the Company against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessment performance and in establishing compensation. Loans, investments, and deposits provide the revenues in the banking operation. Interest expense, provisions for credits losses and payroll provide the significant expenses in the banking operating. All operations are domestic.

Accounting policies for the segment are the same as those described in Note 1. Segment performance is evaluated using consolidated net income. Information reported internally for performance assessment by the chief operating decision maker follows, inclusive of reconciliations of significant segment totals to the financial statements:
Banking Segment
 Years ended December 31,
 202520242023
   
Interest income$749,668 669,196 587,922 
Reconciliation of revenue
Service charges and fees65,072 62,957 59,214 
Trust and other financial services income32,314 30,102 27,284 
Gain/(loss) on sale of investments178 (39,413)(8,307)
Other revenue (1)31,704 33,364 35,632 
Consolidated revenues$878,936 756,206 701,745 
   
Less:
Interest expense224,266 233,618 152,239 
   Segment net interest income and noninterest income$654,670 522,588 549,506 
Less:
Provision for credit losses 55,584 24,505 22,874 
Compensation and employee benefits237,910 214,455 195,691 
Processing expenses58,489 59,351 58,687 
Premises and occupancy costs31,399 29,469 29,151 
Professional services13,122 14,883 17,819 
Office operations13,599 12,433 12,955 
Federal deposit insurance premiums11,523 11,600 9,271 
Other segment items (2)70,254 26,346 27,980 
Income tax expense36,777 29,268 40,121 
Segment net income/consolidated net income$126,013 100,278 134,957 
(1)    Other revenues include loan sales, gain on real estate owned, income from bank owned life insurance and other operating income.
(2)    Other segment items include expenses for collections, marketing, amortization of intangibles, merger, asset disposition and restructuring and other operating expense.
Banking Segment
 Years ended December 31,
 202520242023
   
Other segment disclosures
Interest income$749,668 669,196 587,922 
Interest expense224,266 233,618 152,239 
Depreciation 11,616 11,259 11,492 
Amortization5,171 2,452 3,270 
Other significant noncash items:
Provision for credit losses55,584 24,505 22,874 
Segment assets16,766,617 14,408,224 14,419,105 
Expenditures for segment assets15,143 4,618 2,275 
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Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 25, 2025
2016Mar 1, 2017
2015Feb 29, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesCommitmentsNew StandardsPay vs Performance