Northwest Bancshares, Inc. Liquidation Value

Northwest Bancshares (NWBI) is a $16.9B-asset community bank holding company operating primarily in Pennsylvania (47.5% of CRE collateral), New York (24.3%), Ohio (14.1%), and Indiana (5.0%). Under a liquidation lens, recovery to equity is driven almost entirely by the loan book and investment securities, with intangibles and goodwill zeroed out. MFFAIS reports a cash liquidation value of $286.7M, which equals the tagged CashAndDueFromBanks balance — this figure represents only the cash and due-from layer, not a fully constructed liquidation waterfall, and should not be interpreted as total equity recovery.

Constructed liquidation posture as of March 31, 2026: Total assets of $16.9B carry a GAAP book equity of $1.90B. Applying standard haircuts, the asset-side recovery is materially eroded by: (1) Goodwill of $444.3M written to zero; (2) Core deposit and other finite-lived intangibles of $37.5M written to zero; (3) AFS securities carrying $137.1M in net unrealized losses (gross losses of $143.1M, gross gains of $6.0M) — fair value of $1.75B vs. amortized cost of $1.88B; (4) HTM securities with $79.2M in unrealized losses and fair value of $567.5M vs. book of $646.7M — the HTM book is already carried at amortized cost, so liquidation would crystallize the $79.2M mark-to-market loss; (5) Net loans of $12.9B (gross $13.1B, ACL $150M) subject to credit loss haircut in a forced-sale scenario — ACL at 1.15% of total loans provides limited cushion against a run-rate classified loan ratio of 3.81% ($498M); (6) Bank-owned life insurance of $292.1M recoverable at surrender value less income tax on gain — filing does not separately disclose surrender value vs. cash value differential; (7) PP&E net of $141.5M subject to 50–70% recovery; (8) Other assets of $298.6M with uncertain recovery profile.

On the liability side, total liabilities of $15.0B include deposits of $14.2B (face value), subordinated debt of $114.8M, junior subordinated debentures of $130.2M, and other liabilities of $144.9M — all carried at face for liquidation purposes. The deposit stack increased $270M QoQ to $14.2B, driven by money market (+$194M), savings (+$78M), and time deposits (+$58M). Brokered deposits rose to $306M (10% of time deposits) from $193M at year-end 2025, a notable increase in potentially more flighty funding. Uninsured deposits excluding intercompany/collateralized accounts stand at $2.1B (14.5% of total deposits).

The Penns Woods Bancorp acquisition (closed in 2025) added approximately $1.8B in loans and contributed to the $444.3M goodwill balance. Goodwill increased QoQ from the prior year 10-K balance; the 10-Q filing discusses classified loans acquired in the Penns Woods deal as a driver of the current $498M classified loan balance. Net charge-offs improved to 0.16% annualized in 1Q26 from 0.40% in 4Q25, and nonaccrual loans declined $16M QoQ to $91M. These are positive credit signals but do not change the structural liquidation dynamic: goodwill and intangibles ($482M combined) are zero-recovery assets representing roughly 25% of GAAP equity. The AOCI deficit of $78.9M reflects the unrealized securities loss position, which is already partially recognized in equity but would fully crystallize at liquidation. Recovery to equity in a liquidation scenario is negative when all haircuts are applied simultaneously against face-value liabilities.