v3.26.1
Borrowings
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowings Borrowings
(a)    Borrowed Funds

Borrowed funds at June 30, 2026 and December 31, 2025 are presented in the following table (dollars in thousands):
June 30, 2026December 31, 2025
AmountAverage rateAmountAverage rate
Term notes payable to the FHLB of Pittsburgh, due within one year$320,000 3.93 %$332,569 3.99 %
Term notes payable to the FHLB of Pittsburgh, due in more than one year65,322 4.07 %105,482 4.09 %
      Total term notes payable to the FHLB385,322 438,051 
Revolving line of credit, FHLB of Pittsburgh226,700 3.93 %— — %
Collateralized borrowings, due within one year53 1.94 %8,2321.55 %
      Total borrowed funds$612,075 $446,283 
    
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, 2026, the carrying value of these loans was $6.2 billion. Certain of these borrowings are subject to restrictions or penalties in the event of prepayment.
The revolving line of credit with the FHLB of Pittsburgh carries a commitment of $250 million. The rate is adjusted daily by the FHLB of Pittsburgh, and any borrowings on this line may be repaid at any time without penalty. There was a $227 million and a $0 million balance on the revolving line of credit at June 30, 2026 and December 31, 2025, respectively.

At June 30, 2026 and December 31, 2025, collateralized borrowings due within one year were $53 thousand and $8 million, respectively. These borrowings are collateralized by cash or various securities held in safekeeping by the FHLB. At June 30, 2026, the carrying value of the cash and securities used as collateral was $10 million.

At June 30, 2026 and December 31, 2025, term notes payable to the FHLB of Pittsburgh due within one year was $320 million and $333 million, respectively. At June 30, 2026 and December 31, 2025 term notes payable to the FHLB of Pittsburgh due in more than one year was $65 million and $105 million, respectively.


(b)    Subordinated Debt

On September 9, 2020, the Company issued $125 million of 4.00% fixed-to-floating rate subordinated notes with a maturity date of September 15, 2030. The subordinated notes, which qualify as Tier 2 capital, subject to certain limitations based on maturity date, bear interest at an annual rate of 4.00%, payable semi-annually in arrears commencing on March 15, 2021, and a floating rate of interest equivalent to the 3-month Secured Overnight Financing Rate (“SOFR”) plus 3.89% payable quarterly in arrears commencing on December 15, 2025. During 2022 the Company repurchased $10 million of subordinated notes leaving $115 million of subordinated notes outstanding. The subordinated debt issuance costs of approximately $2 million were amortized over five years on a straight-line basis into interest expense. At June 30, 2026 and December 31, 2025, subordinated notes, net of issuance costs, were $115 million. For the six months ended June 30, 2026 and June 30, 2025 total interest expense paid on the subordinated notes was $4 million and $2 million, respectively.

(b)    Junior Subordinated Debentures

The Company has seven statutory business trusts: Northwest Bancorp Capital Trust III, a Delaware statutory business trust, Northwest Bancorp Statutory Trust IV, a Connecticut statutory business trust, LNB Trust II, a Delaware statutory business trust, Union National Capital Trust I (“UNCT I”), a Delaware statutory business trust, Union National Capital Trust II (“UNCT II”), a Delaware statutory business trust, MFBC Statutory Trust I, a Delaware statutory trust, and Universal Preferred Trust, a Delaware statutory trust (the “Trusts”). The Trusts exist solely to issue preferred securities to third parties for cash, issue common securities to the Company in exchange for capitalization of the Trusts, invest the proceeds from the sale of trust securities in an equivalent amount of debentures of the Company, and engage in other activities that are incidental to those previously listed. 

The Trusts have invested the proceeds of the offerings in junior subordinated deferrable interest debentures issued by the Company. The structure of these debentures mirrors the structure of the trust-preferred securities. These subordinated debentures are the sole assets of the Trusts. As the shareholders of the trust preferred securities are the primary beneficiaries of the Trusts, the Trusts are not consolidated in our financial statements.

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 (dollars in thousands).
Maturity dateInterest rateCapital debt securitiesJune 30, 2026December 31, 2025
Northwest Bancorp Capital Trust IIIDecember 30, 2035
3-month SOFR plus 1.38%
$50,000 51,547 51,547 
Northwest Bancorp Statutory Trust IVDecember 15, 2035
3-month SOFR plus 1.38%
50,000 51,547 51,547 
LNB Trust IIJune 15, 2037
3-month SOFR plus 1.48%
7,875 8,119 8,119 
Union National Capital Trust I (1)January 23, 2034
3-month SOFR plus 2.85%
8,000 8,061 8,049 
Union National Capital Trust II (1)November 23, 2034
3-month SOFR plus 2.00%
3,000 2,864 2,850 
MFBC Statutory Trust I (1)September 15, 2035
3-month SOFR plus 1.70%
5,000 4,047 3,995 
Universal Preferred Trust (1)October 7, 2035
3-month SOFR plus 1.69%
5,000 4,038 3,986 
$128,875 130,223 130,093 
(1) Net of discounts due to the fair value adjustment made at the time of acquisition.

Cash distributions on the trust securities are made on a quarterly basis to the extent interest on the debentures is received by the Trusts. We have the right to defer payment of interest on the subordinated debentures at any time, or from time-to-time, for periods not exceeding five years. If interest payments on the subordinated debentures are deferred, the distributions on the trust securities also are deferred. To date there have been no interest deferrals. Interest on the subordinated debentures and distributions on the trust securities is cumulative. Our obligation constitutes a full, irrevocable, and unconditional guarantee on a subordinated basis of the obligations of
the trust under the preferred securities. For the six months ended June 30, 2026 and June 30, 2025 total interest expense paid on trust preferred securities was $4 million.
 
The Trusts must redeem the preferred securities when the debentures are paid at maturity or upon an earlier redemption of the debentures to the extent the debentures are redeemed. All or part of the debentures may be redeemed at any time.