COLUMBUS, Ohio, April 24,
2023 /PRNewswire/ -- Northwest Bancshares, Inc.,
(the "Company"), (NasdaqGS: NWBI) announced net income for the
quarter ended March 31, 2023 of $33.7
million, or $0.26 per diluted
share. This represents an increase of $5.4
million, or 19.1%, compared to the same quarter last year,
when net income was $28.3 million, or
$0.22 per diluted share. The
annualized returns on average shareholders' equity and average
assets for the quarter ended March 31, 2023 were 9.11% and
0.97% compared to 7.17% and 0.80% for the same quarter last
year.
The Company also announced that its Board of Directors declared
a quarterly cash dividend of $0.20
per share payable on May 15, 2023 to shareholders of record as
of May 4, 2023. This is the 114th consecutive
quarter in which the Company has paid a cash dividend. Based on the
market value of the Company's common stock as of March 31,
2023, this represents an annualized dividend yield of approximately
6.7%.
Louis J. Torchio, President and
CEO, added, "The loan growth momentum during the prior year carried
into the current quarter with loan growth of $171.8 million, or 1.6%, primarily in our
commercial loan portfolios generated through our Corporate Finance
group, and our newly launched Equipment Finance and Small Business
teams. We are pleased to see this loan growth was funded primarily
through the growth in our deposit base, which increased
$72.6 million from the prior quarter.
Although our yield on interest earning assets has continued to
increase to 4.15%, our net interest margin began to tighten,
declining by 10 basis points to 3.47%, due to the current interest
rate environment and our funding needs. Asset quality metrics
remain strong with nonperforming and classified assets dropping to
$79.8 million and $208.6 million, respectively."
Mr. Torchio continued, "I am also pleased to report that we have
been able to maintain our current deposit base and have not seen
outsized deposit outflows due to the recent events in the banking
industry. Our uninsured deposits, excluding intercompany accounts
and collateralized public funds, continue to remain low at
$1.6 billion, or 13.6% of our total
deposit base. This low level of uninsured deposits also emphasizes
the granularity and diversity of our deposit base with an overall
average balance of approximately $16,000. Additionally, our funding
availability at March 31, 2023 was approximately $3.6 billion while borrowed funds outstanding
were $688.6 million. We are pleased
with our current liquidity levels and deposit mix and believe they
leave us well positioned for the year."
Net interest income increased by $21.8
million, or 24.1%, to $112.5
million for the quarter ended March 31, 2023, from
$90.6 million for the quarter ended
March 31, 2022. This increase in net interest income is a
result of both the increase in market interest rates and the change
in our interest-earning asset mix throughout 2022 and continuing in
the first quarter of 2023. Cash in interest-earning deposits was
redeployed into higher yielding loans, which, along with higher
market interest rates, caused the yield on interest-earning asset
to increase to 4.15% for the quarter ended March 31, 2023 from
2.93% for the quarter ended March 31, 2022. Interest income on
loans receivable increased $35.6
million, or 40.3%, due to an increase of $988.3 million, or 10.0%, in the average balance
of loans in addition to an increase in the yield on loans to 4.63%
for the quarter ended March 31, 2023 from 3.63% for the
quarter ended March 31, 2022. Partially offsetting this
increase in interest income was an increase in the cost of
interest-bearing liabilities to 0.96% for the quarter ended
March 31, 2023 from 0.25% for the quarter ended March 31,
2022. This increase was largely due to higher market interest rates
causing an increase in both deposit and borrowing costs. The net
effect of these changes in interest rates and average balances was
an increase in the Company's net interest margin to 3.47% for the
quarter ended March 31, 2023 from 2.75% for the same quarter
last year.
The provision for credit losses increased by $4.9 million, to $5.0
million for the current quarter ended March 31, 2023
from $115,000 for the quarter ended
March 31, 2022. This increase was primarily due to growth
within our loan portfolio year over year, as well as forecasted
economic deterioration reflected in our allowance for credit loss
models. The Company continued to experience improvement in asset
quality as classified loans decreased by $111.3 million, or 34.8%, to $208.6 million, or 1.88% of total loans, at
March 31, 2023 from $319.9
million, or 3.15% of total loans, at March 31, 2022.
Total delinquent loans also decreased to $73.4 million, or just 0.66% of loans receivable,
at March 31, 2023 from $75.4
million, or 0.74% of gross loans, at March 31,
2022.
Noninterest income decreased by $1.8
million, or 6.9%, to $24.0
million for the quarter ended March 31, 2023, from
$25.7 million for the quarter ended
March 31, 2022. This decrease was primarily due to a
decrease in mortgage banking income of $941,000, or 64.2%, to $524,000 for the quarter ended March 31,
2023 from $1.5 million for the
quarter ended March 31, 2022. This decrease reflects the
impact of less favorable pricing in the secondary market, due
primarily to the volatile interest rate environment, as well as a
decrease in mortgage volumes primarily due to higher market
interest rates.
Noninterest expense increased by $7.1
million, or 8.8%, to $87.5
million for the quarter ended March 31, 2023 from
$80.3 million for the quarter ended
March 31, 2022. This increase primarily resulted from a
$2.2 million, or 84.9%, increase in
professional services to $4.8 million
for the quarter ended March 31, 2023 from $2.6 million for the quarter ended March 31,
2022 due to the use of third-party consulting and staffing support.
Also contributing to this variance was a $1.8 million increase in processing expenses
to $14.4 million for the quarter
ended March 31, 2023, from $12.5 million for the quarter ended
March 31, 2022 due to the implementation of additional third
party software programs. Merger, asset disposition and
restructuring expense increased $1.4
million for the quarter ended March 31, 2023 due to the
severance and fixed asset charges related to the branch
optimization and personnel reduction announced during the fourth
quarter of 2022. Lastly, FDIC insurance premiums increased
$1.1 million to $2.2 million for the quarter ended March 31,
2023 from $1.1 million for the
quarter ended March 31, 2022 due to an increase in the deposit
insurance assessment rate beginning in the first quarter of
2023.
The provision for income taxes increased by $2.7 million, or 35.4%, to $10.3 million for the quarter ended
March 31, 2023 from $7.6 million
for the quarter ended March 31, 2022 due primarily to an
increase in income before taxes in the current year.
Headquartered in Columbus,
Ohio, Northwest Bancshares, Inc. is the bank holding company
of Northwest Bank. Founded in 1896 and headquartered in
Warren, Pennsylvania, Northwest
Bank is a full-service financial institution offering a complete
line of business and personal banking products, as well as employee
benefits and wealth management services. As of March 31, 2023,
Northwest operated 142 full-service community banking offices and
eight free standing drive-through facilities in Pennsylvania, New
York, Ohio and
Indiana. 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 inflation and 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; (7) increased risk associated with
commercial real-estate and business loans; (8) changes in
liquidity, including the size and composition of our deposit
portfolio; and (9) the effect of any pandemic, including COVID-19,
war or act of terrorism. 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)
|
|
|
March 31,
2023
|
|
December 31,
2022
|
|
March 31,
2022
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
96,497
|
|
139,365
|
|
1,161,006
|
Marketable securities
available-for-sale (amortized cost of $1,402,805, $1,431,728 and
$1,542,170, respectively)
|
1,205,510
|
|
1,218,108
|
|
1,442,098
|
Marketable securities
held-to-maturity (fair value of $750,345, $751,384 and $677,376,
respectively)
|
866,022
|
|
881,249
|
|
737,730
|
Total cash and cash
equivalents and marketable securities
|
2,168,029
|
|
2,238,722
|
|
3,340,834
|
|
|
|
|
|
|
Loans
held-for-sale
|
7,006
|
|
9,913
|
|
19,272
|
Residential mortgage
loans
|
3,499,078
|
|
3,488,686
|
|
3,102,617
|
Home equity
loans
|
1,281,546
|
|
1,297,674
|
|
1,286,520
|
Consumer
loans
|
2,232,133
|
|
2,168,655
|
|
1,895,981
|
Commercial real estate
loans
|
2,826,485
|
|
2,823,555
|
|
2,959,893
|
Commercial
loans
|
1,246,023
|
|
1,131,969
|
|
874,751
|
Total loans
receivable
|
11,092,271
|
|
10,920,452
|
|
10,139,034
|
Allowance for credit
losses
|
(121,257)
|
|
(118,036)
|
|
(99,295)
|
Loans receivable,
net
|
10,971,014
|
|
10,802,416
|
|
10,039,739
|
|
|
|
|
|
|
FHLB stock, at
cost
|
41,519
|
|
40,143
|
|
13,318
|
Accrued interest
receivable
|
36,177
|
|
35,528
|
|
26,268
|
Real estate owned,
net
|
524
|
|
413
|
|
929
|
Premises and equipment,
net
|
140,301
|
|
145,909
|
|
149,970
|
Bank-owned life
insurance
|
256,310
|
|
255,062
|
|
254,109
|
Goodwill
|
380,997
|
|
380,997
|
|
380,997
|
Other intangible
assets, net
|
7,651
|
|
8,560
|
|
11,654
|
Other assets
|
191,294
|
|
205,574
|
|
193,365
|
Total
assets
|
$
14,193,816
|
|
14,113,324
|
|
14,411,183
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$ 2,896,092
|
|
2,993,243
|
|
3,128,849
|
Interest-bearing demand
deposits
|
2,541,503
|
|
2,686,431
|
|
2,891,622
|
Money market deposit
accounts
|
2,328,050
|
|
2,457,569
|
|
2,680,613
|
Savings
deposits
|
2,194,743
|
|
2,275,020
|
|
2,367,438
|
Time
deposits
|
1,576,791
|
|
1,052,285
|
|
1,251,878
|
Total
deposits
|
11,537,179
|
|
11,464,548
|
|
12,320,400
|
|
|
|
|
|
|
Borrowed
funds
|
688,641
|
|
681,166
|
|
121,436
|
Subordinated
debt
|
113,927
|
|
113,840
|
|
123,670
|
Junior subordinated
debentures
|
129,379
|
|
129,314
|
|
129,119
|
Advances by borrowers
for taxes and insurance
|
49,893
|
|
47,613
|
|
44,022
|
Accrued interest
payable
|
2,236
|
|
3,231
|
|
563
|
Other
liabilities
|
159,286
|
|
182,126
|
|
148,461
|
Total
liabilities
|
12,680,541
|
|
12,621,838
|
|
12,887,671
|
Shareholders'
equity
|
|
|
|
|
|
Preferred stock, $0.01
par value: 50,000,000 shares authorized, no shares
issued
|
—
|
|
—
|
|
—
|
Common stock, $0.01 par
value: 500,000,000 shares authorized, 127,065,400, 127,028,848 and
126,686,373 shares issued and outstanding, respectively
|
1,271
|
|
1,270
|
|
1,267
|
Additional paid-in
capital
|
1,020,855
|
|
1,019,647
|
|
1,012,308
|
Retained
earnings
|
649,672
|
|
641,727
|
|
612,481
|
Accumulated other
comprehensive loss
|
(158,523)
|
|
(171,158)
|
|
(102,544)
|
Total shareholders'
equity
|
1,513,275
|
|
1,491,486
|
|
1,523,512
|
Total liabilities and
shareholders' equity
|
$
14,193,816
|
|
14,113,324
|
|
14,411,183
|
|
|
|
|
|
|
Equity to
assets
|
10.66 %
|
|
10.57 %
|
|
10.57 %
|
Tangible common equity
to assets*
|
8.15 %
|
|
8.03 %
|
|
8.07 %
|
Book value per
share
|
$
11.91
|
|
11.74
|
|
12.03
|
Tangible book value
per share*
|
$
8.85
|
|
8.67
|
|
8.93
|
Closing market price
per share
|
$
12.03
|
|
13.98
|
|
13.51
|
Full time equivalent
employees
|
2,066
|
|
2,160
|
|
2.268
|
Number of banking
offices
|
150
|
|
150
|
|
170
|
*
|
Excludes goodwill and
other intangible assets (non-GAAP).
|
Northwest
Bancshares, Inc. and Subsidiaries
Consolidated
Statements of Income (Unaudited)
(dollars in
thousands, except per share amounts)
|
|
|
Quarter ended
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
$ 123,745
|
|
117,137
|
|
106,943
|
|
95,574
|
|
88,174
|
Mortgage-backed
securities
|
8,537
|
|
8,603
|
|
8,683
|
|
7,158
|
|
6,360
|
Taxable investment
securities
|
845
|
|
840
|
|
838
|
|
715
|
|
677
|
Tax-free investment
securities
|
700
|
|
701
|
|
709
|
|
683
|
|
674
|
FHLB stock
dividends
|
690
|
|
419
|
|
148
|
|
82
|
|
81
|
Interest-earning
deposits
|
423
|
|
153
|
|
1,295
|
|
1,684
|
|
467
|
Total interest
income
|
134,940
|
|
127,853
|
|
118,616
|
|
105,896
|
|
96,433
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
11,238
|
|
3,871
|
|
3,157
|
|
3,341
|
|
3,751
|
Borrowed
funds
|
11,238
|
|
6,938
|
|
2,710
|
|
2,290
|
|
2,059
|
Total interest
expense
|
22,476
|
|
10,809
|
|
5,867
|
|
5,631
|
|
5,810
|
Net interest
income
|
112,464
|
|
117,044
|
|
112,749
|
|
100,265
|
|
90,623
|
Provision
for credit losses - loans
|
4,870
|
|
9,023
|
|
7,689
|
|
2,629
|
|
(1,481)
|
Provision for credit
losses - unfunded commitments (1)
|
126
|
|
1,876
|
|
3,585
|
|
3,396
|
|
1,596
|
Net interest income
after provision for credit losses
|
107,468
|
|
106,145
|
|
101,475
|
|
94,240
|
|
90,508
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
Loss on sale of
investments
|
—
|
|
(1)
|
|
(2)
|
|
(3)
|
|
(2)
|
Service charges and
fees
|
13,189
|
|
14,125
|
|
14,323
|
|
13,673
|
|
13,067
|
Trust and other
financial services income
|
6,449
|
|
6,642
|
|
6,650
|
|
7,461
|
|
7,012
|
Gain/(loss) on real
estate owned, net
|
108
|
|
51
|
|
290
|
|
291
|
|
(29)
|
Income from bank-owned
life insurance
|
1,269
|
|
1,663
|
|
1,475
|
|
2,008
|
|
1,983
|
Mortgage banking
income
|
524
|
|
477
|
|
766
|
|
2,157
|
|
1,465
|
Other operating
income
|
2,430
|
|
4,901
|
|
3,301
|
|
4,861
|
|
2,244
|
Total noninterest
income
|
23,969
|
|
27,858
|
|
26,803
|
|
30,448
|
|
25,740
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
46,604
|
|
46,658
|
|
46,711
|
|
48,073
|
|
46,917
|
Premises and occupancy
costs
|
7,471
|
|
7,370
|
|
7,171
|
|
7,280
|
|
7,797
|
Office
operations
|
3,010
|
|
3,544
|
|
3,229
|
|
3,162
|
|
3,383
|
Collections
expense
|
387
|
|
563
|
|
322
|
|
403
|
|
520
|
Processing
expenses
|
14,350
|
|
13,585
|
|
13,416
|
|
12,947
|
|
12,548
|
Marketing
expenses
|
2,892
|
|
2,773
|
|
2,147
|
|
2,047
|
|
2,128
|
Federal deposit
insurance premiums
|
2,223
|
|
1,319
|
|
1,200
|
|
1,130
|
|
1,129
|
Professional
services
|
4,758
|
|
5,434
|
|
3,363
|
|
3,333
|
|
2,573
|
Amortization of
intangible assets
|
909
|
|
932
|
|
1,047
|
|
1,115
|
|
1,183
|
Real estate owned
expense
|
181
|
|
53
|
|
61
|
|
72
|
|
37
|
Merger, asset
disposition and restructuring expense
|
2,802
|
|
4,243
|
|
—
|
|
—
|
|
1,374
|
Other
expenses
|
1,863
|
|
2,304
|
|
321
|
|
1,849
|
|
759
|
Total noninterest
expense
|
87,450
|
|
88,778
|
|
78,988
|
|
81,411
|
|
80,348
|
Income before income
taxes
|
43,987
|
|
45,225
|
|
49,290
|
|
43,277
|
|
35,900
|
Income tax
expense
|
10,308
|
|
10,576
|
|
11,986
|
|
9,851
|
|
7,613
|
Net income
|
$
33,679
|
|
34,649
|
|
37,304
|
|
33,426
|
|
28,287
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
0.27
|
|
0.27
|
|
0.29
|
|
0.26
|
|
0.22
|
Diluted earnings per
share
|
$
0.26
|
|
0.27
|
|
0.29
|
|
0.26
|
|
0.22
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average equity
|
9.11 %
|
|
9.38 %
|
|
9.84 %
|
|
8.90 %
|
|
7.17 %
|
Annualized return on
average assets
|
0.97 %
|
|
0.98 %
|
|
1.05 %
|
|
0.94 %
|
|
0.80 %
|
Annualized return on
tangible common equity *
|
12.15 %
|
|
12.48 %
|
|
13.84 %
|
|
12.16 %
|
|
10.14 %
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (1)
**
|
61.38 %
|
|
57.70 %
|
|
55.85 %
|
|
61.43 %
|
|
66.85 %
|
Annualized noninterest
expense to average assets (1) **
|
2.40 %
|
|
2.37 %
|
|
2.20 %
|
|
2.26 %
|
|
2.19 %
|
|
|
(1)
|
Reclassified from other
expenses for periods prior to March 31, 2023. Respective ratios
updated for reclassification.
|
*
|
Excludes goodwill and
other intangible assets (non-GAAP).
|
**
|
Excludes amortization
of intangible assets and merger, asset disposition and
restructuring expenses (non-GAAP).
|
Northwest
Bancshares, Inc. and Subsidiaries
Reconciliation of
Non-GAAP to GAAP Net Income (Unaudited) *
(dollars in
thousands, except per share amounts)
|
|
|
Quarter ended March
31,
|
|
2023
|
|
2022
|
Operating results
(non-GAAP):
|
|
|
|
Net interest
income
|
$
112,464
|
|
90,623
|
Provision for credit
losses
|
4,996
|
|
115
|
Noninterest
income
|
23,969
|
|
25,740
|
Noninterest
expense
|
84,648
|
|
78,974
|
Income
taxes
|
11,093
|
|
7,998
|
Net operating income
(non-GAAP)
|
$
35,696
|
|
29,276
|
Diluted earnings per
share (non-GAAP)
|
$
0.28
|
|
0.23
|
|
|
|
|
Average
equity
|
$
1,498,825
|
|
1,600,728
|
Average
assets
|
14,121,496
|
|
14,423,574
|
Annualized return on
average equity (non-GAAP)
|
9.66 %
|
|
7.42 %
|
Annualized return on
average assets (non-GAAP)
|
1.03 %
|
|
0.82 %
|
|
|
|
|
Reconciliation of net
operating income to net income:
|
|
|
|
Net operating income
(non-GAAP)
|
$
35,696
|
|
29,276
|
Non-GAAP adjustments,
net of tax:
|
|
|
|
Merger, asset
disposition and restructuring expense
|
(2,017)
|
|
(989)
|
Net income
(GAAP)
|
$
33,679
|
|
28,287
|
Diluted earnings per
share (GAAP)
|
$
0.26
|
|
0.22
|
|
|
|
|
Annualized return on
average equity (GAAP)
|
9.11 %
|
|
7.17 %
|
Annualized return on
average assets (GAAP)
|
0.97 %
|
|
0.80 %
|
|
|
|
|
Tangible common equity
to tangible assets, including unrealized losses on held-to-maturity
investments
|
|
|
|
Total
shareholders' equity
|
1,513,275
|
|
1,523,512
|
Less: goodwill
and intangible assets
|
388,648
|
|
392,651
|
Less: unrealized
losses on held-to-maturity investments, net of tax
|
83,287
|
|
43,455
|
Tangible common
equity, including unrealized losses on held-to-maturity
investments
|
1,041,340
|
|
1,087,406
|
|
|
|
|
Total
assets
|
14,193,816
|
|
14,411,183
|
Less:
goodwill and intangible assets
|
388,648
|
|
392,651
|
Tangible
assets
|
13,805,168
|
|
14,018,532
|
|
|
|
|
Tangible common equity
to tangible assets, including unrealized losses on held-to-maturity
investments
|
7.54 %
|
|
7.76 %
|
|
|
*
|
The table summarizes
the Company's results from operations on a GAAP basis and on an
operating (non-GAAP) basis for the periods indicated. Operating
results exclude merger, asset disposition and restructuring
expense. The net tax effect was calculated using statutory tax
rates of approximately 28.0%. The company believes this non-GAAP
presentation provides a meaningful comparison of operational
performance and facilitates a more effective evaluation and
comparison of results to assess performance in relation to ongoing
operations.
|
Northwest
Bancshares, Inc. and Subsidiaries
Deposits
(Unaudited)
(dollars in
thousands)
|
|
Generally, deposits in
excess of $250,000 are not federally insured. The following
table
provides details around the Company's uninsured deposits
portfolio:
|
|
|
|
As of March 31,
2023
|
|
Balance
|
|
Percent of
total deposits
|
|
Number of
relationships
|
Uninsured deposits per
the Call Report (1)
|
$
2,917,743
|
|
25.29 %
|
|
4,950
|
Less intercompany
deposit accounts
|
787,363
|
|
6.82 %
|
|
13
|
Less collateralized
deposit accounts
|
564,787
|
|
4.90 %
|
|
275
|
Adjusted balance of
uninsured deposits
|
$
1,565,593
|
|
13.57 %
|
|
4,662
|
|
|
(1)
|
Uninsured deposits
presented may be different from actual amounts due to titling of
accounts.
|
|
Our largest uninsured
depositor, excluding intercompany and collateralized deposit
accounts, had an aggregate uninsured deposit balance of $34.0
million, or 0.29% of total deposits, as of March 31, 2023. Our
top ten largest uninsured depositors, excluding intercompany and
collateralized deposit accounts, had an aggregate uninsured deposit
balance of $148.2 million, or 1.28% of total deposits, as of
March 31, 2023. The average adjusted uninsured deposit account
balance was $336,000 as of March 31, 2023.
|
|
The following table
provides additional details over the Company's deposit
portfolio:
|
|
|
As of March 31,
2023
|
|
Balance
|
|
Percent of
total deposits
|
|
Number of
accounts
|
Personal noninterest
bearing demand deposits
|
$
1,428,232
|
|
12.38 %
|
|
291,561
|
Business noninterest
bearing demand deposits
|
1,467,860
|
|
12.72 %
|
|
45,924
|
Personal
interest-bearing demand deposits
|
1,627,546
|
|
14.11 %
|
|
60,459
|
Business
interest-bearing demand deposits
|
913,957
|
|
7.92 %
|
|
8,451
|
Personal money market
deposits
|
1,626,614
|
|
14.10 %
|
|
26,867
|
Business money market
deposits
|
701,436
|
|
6.08 %
|
|
3,008
|
Savings
deposits
|
2,194,743
|
|
19.02 %
|
|
216,358
|
Time
deposits
|
1,576,791
|
|
13.67 %
|
|
61,779
|
Total
deposits
|
$
11,537,179
|
|
100.00 %
|
|
714,407
|
|
Our average deposit
account balance as of March 31, 2023 was $16,000. The
Company's insured cash sweep deposit balance was $161.6 million as
of
March 31,
2023.
|
Northwest
Bancshares, Inc. and Subsidiaries
Marketable
Securities (Unaudited)
(dollars in
thousands)
|
|
|
|
March 31,
2023
|
|
|
Marketable securities
available-for-sale
|
|
Amortized
cost
|
|
Gross
unrealized
holding
gains
|
|
Gross
unrealized
holding
losses
|
|
Fair
value
|
|
Weighted average
duration
|
Debt
issued by the U.S. government and agencies:
|
|
|
|
|
|
|
|
|
|
|
Due after one
year through five years
|
|
$
20,000
|
|
—
|
|
(1,421)
|
|
18,579
|
|
3.60
|
Due after ten
years
|
|
52,089
|
|
—
|
|
(9,653)
|
|
42,436
|
|
6.28
|
|
|
|
|
|
|
|
|
|
|
|
Debt
issued by government sponsored enterprises:
|
|
|
|
|
|
|
|
|
|
|
Due after
one year through five years
|
|
20,983
|
|
—
|
|
(2,680)
|
|
18,303
|
|
4.73
|
Due after
five years through ten years
|
|
25,600
|
|
—
|
|
(3,623)
|
|
21,977
|
|
5.25
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
securities:
|
|
|
|
|
|
|
|
|
|
|
Due
within one year
|
|
503
|
|
—
|
|
—
|
|
503
|
|
0.25
|
Due after
one year through five years
|
|
990
|
|
27
|
|
(12)
|
|
1,005
|
|
2.59
|
Due after
five years through ten years
|
|
38,384
|
|
1
|
|
(1,612)
|
|
36,773
|
|
4.72
|
Due after
ten years
|
|
87,322
|
|
131
|
|
(11,059)
|
|
76,394
|
|
9.04
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
debt issues:
|
|
|
|
|
|
|
|
|
|
|
Due after
five years through ten years
|
|
13,528
|
|
—
|
|
(958)
|
|
12,570
|
|
5.62
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed agency securities:
|
|
|
|
|
|
|
|
|
|
|
Fixed
rate pass-through
|
|
221,361
|
|
49
|
|
(28,136)
|
|
193,274
|
|
6.02
|
Variable
rate pass-through
|
|
8,287
|
|
4
|
|
(149)
|
|
8,142
|
|
4.24
|
Fixed
rate agency CMOs
|
|
886,717
|
|
—
|
|
(137,663)
|
|
749,054
|
|
5.22
|
Variable
rate agency CMOs
|
|
27,041
|
|
35
|
|
(576)
|
|
26,500
|
|
3.98
|
Total
residential mortgage-backed agency securities
|
|
1,143,406
|
|
88
|
|
(166,524)
|
|
976,970
|
|
5.34
|
Total
marketable securities available-for-sale
|
|
$
1,402,805
|
|
247
|
|
(197,542)
|
|
1,205,510
|
|
5.55
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities
held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
Government
sponsored
|
|
|
|
|
|
|
|
|
|
|
Due after one year
through five years
|
|
$
29,477
|
|
—
|
|
(3,131)
|
|
26,346
|
|
3.68
|
Due after five years
through ten years
|
|
94,978
|
|
—
|
|
(15,560)
|
|
79,418
|
|
5.72
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed agency securities:
|
|
|
|
|
|
|
|
|
|
|
Fixed
rate pass-through
|
|
$
159,504
|
|
—
|
|
(22,260)
|
|
137,244
|
|
5.58
|
Variable
rate pass-through
|
|
521
|
|
—
|
|
(7)
|
|
514
|
|
4.64
|
Fixed
rate agency CMOs
|
|
581,013
|
|
—
|
|
(74,710)
|
|
506,303
|
|
6.76
|
Variable
rate agency CMOs
|
|
529
|
|
—
|
|
(9)
|
|
520
|
|
6.16
|
Total
residential mortgage-backed agency securities
|
|
741,567
|
|
—
|
|
(96,986)
|
|
644,581
|
|
6.51
|
Total
marketable securities held-to-maturity
|
|
$
866,022
|
|
—
|
|
(115,677)
|
|
750,345
|
|
6.32
|
Northwest
Bancshares, Inc. and Subsidiaries
Borrowed Funds
(Unaudited)
(dollars in
thousands)
|
|
|
March 31,
2023
|
|
Amount
|
|
Average
rate
|
Term notes payable to
the FHLB of Pittsburgh, due within one year
|
$
403,000
|
|
5.17 %
|
Notes payable to the
FHLB of Pittsburgh, due within one year
|
183,700
|
|
5.15 %
|
Total term notes
payable to the FHLB
|
586,700
|
|
5.17 %
|
|
|
|
|
Collateralized
borrowings, due within one year
|
83,290
|
|
1.16 %
|
Collateral received,
due within one year
|
18,651
|
|
5.17 %
|
Subordinated
debentures, net of issuance costs
|
113,927
|
|
4.28 %
|
Junior subordinated
debentures
|
129,379
|
|
6.77 %
|
Total borrowed funds
*
|
$
931,947
|
|
4.92 %
|
|
|
*
|
As of March 31, 2023,
the Company had $3.2 billion of additional borrowing capacity
available with the FHLB of Pittsburgh, including a $250.0 million
overnight line of credit, which had a $183.7 million drawn balance,
as well as $305.0 million of borrowing capacity available with the
Federal Reserve Bank and $105.0 million with two correspondent
banks.
|
Northwest
Bancshares, Inc. and Subsidiaries
Analysis of Loan
Portfolio by Loan Sector (Unaudited)
|
|
Commercial
real estate loans outstanding
|
The following table
provides the various loan sectors in our commercial real estate
portfolio at March 31, 2023:
|
|
|
|
March 31,
2023
|
Property
type
|
|
Percent of
portfolio
|
5 or more unit
dwelling
|
|
14.1 %
|
Nursing home
|
|
13.4 %
|
Retail
building
|
|
11.9 %
|
Commercial office
building - non-owner occupied
|
|
8.6 %
|
Residential acquisition
& development - 1-4 family, townhouses and
apartments
|
|
5.7 %
|
Manufacturing &
industrial building
|
|
3.6 %
|
Commercial acquisition
and development
|
|
3.6 %
|
Warehouse/storage
building
|
|
3.5 %
|
Multi-use building -
office and warehouse
|
|
3.5 %
|
Commercial office
building - owner occupied
|
|
3.4 %
|
Hotel/motel
|
|
3.1 %
|
Single family
dwelling
|
|
3.0 %
|
Other medical
facility
|
|
2.7 %
|
Student
housing
|
|
2.7 %
|
Multi-use building -
commercial, retail and residential
|
|
2.6 %
|
2-4 family
|
|
2.4 %
|
Agricultural real
estate
|
|
2.3 %
|
All other
|
|
9.9 %
|
Total
|
|
100.0 %
|
|
|
The following table
provides our commercial real estate portfolio by state at
March 31, 2023:
|
|
|
|
March 31,
2023
|
State
|
|
Percent of
portfolio
|
New York
|
|
31.0 %
|
Pennsylvania
|
|
30.6 %
|
Ohio
|
|
19.4 %
|
Indiana
|
|
8.7 %
|
Virginia
|
|
2.3 %
|
All other
|
|
8.0 %
|
Total
|
|
100.0 %
|
Northwest
Bancshares, Inc. and Subsidiaries
Asset Quality
(Unaudited)
(dollars in
thousands)
|
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
Nonaccrual loans
current:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
1,423
|
|
1,496
|
|
2,186
|
|
1,970
|
|
1,884
|
Home equity
loans
|
1,084
|
|
1,418
|
|
1,158
|
|
1,337
|
|
1,376
|
Consumer
loans
|
911
|
|
836
|
|
833
|
|
976
|
|
1,148
|
Commercial real estate
loans
|
50,045
|
|
53,303
|
|
56,193
|
|
60,537
|
|
79,810
|
Commercial
loans
|
1,468
|
|
895
|
|
1,801
|
|
5,270
|
|
6,060
|
Total nonaccrual loans
current
|
$
54,931
|
|
57,948
|
|
62,171
|
|
70,090
|
|
90,278
|
Nonaccrual loans
delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
688
|
|
473
|
|
54
|
|
2
|
|
760
|
Home equity
loans
|
18
|
|
180
|
|
316
|
|
172
|
|
195
|
Consumer
loans
|
223
|
|
178
|
|
155
|
|
158
|
|
190
|
Commercial real estate
loans
|
1,900
|
|
1,220
|
|
55
|
|
911
|
|
333
|
Commercial
loans
|
341
|
|
145
|
|
237
|
|
358
|
|
4
|
Total nonaccrual loans
delinquent 30 days to 59 days
|
$
3,170
|
|
2,196
|
|
817
|
|
1,601
|
|
1,482
|
Nonaccrual loans
delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
919
|
|
31
|
|
32
|
|
199
|
|
830
|
Home equity
loans
|
338
|
|
290
|
|
432
|
|
566
|
|
371
|
Consumer
loans
|
340
|
|
341
|
|
382
|
|
226
|
|
280
|
Commercial real estate
loans
|
1,355
|
|
473
|
|
848
|
|
630
|
|
—
|
Commercial
loans
|
126
|
|
96
|
|
132
|
|
73
|
|
—
|
Total nonaccrual loans
delinquent 60 days to 89 days
|
$
3,078
|
|
1,231
|
|
1,826
|
|
1,694
|
|
1,481
|
Nonaccrual loans
delinquent 90 days or more:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
3,300
|
|
5,574
|
|
5,544
|
|
5,445
|
|
3,976
|
Home equity
loans
|
2,190
|
|
2,257
|
|
1,779
|
|
2,081
|
|
2,968
|
Consumer
loans
|
2,791
|
|
2,672
|
|
2,031
|
|
1,942
|
|
1,782
|
Commercial real estate
loans
|
8,010
|
|
7,867
|
|
8,821
|
|
14,949
|
|
21,399
|
Commercial
loans
|
1,139
|
|
1,491
|
|
638
|
|
583
|
|
795
|
Total nonaccrual loans
delinquent 90 days or more
|
$
17,430
|
|
19,861
|
|
18,813
|
|
25,000
|
|
30,920
|
Total nonaccrual
loans
|
$
78,609
|
|
81,236
|
|
83,627
|
|
98,385
|
|
124,161
|
Total nonaccrual
loans
|
$
78,609
|
|
81,236
|
|
83,627
|
|
98,385
|
|
124,161
|
Loans 90 days past due
and still accruing
|
652
|
|
744
|
|
357
|
|
379
|
|
420
|
Nonperforming
loans
|
79,261
|
|
81,980
|
|
83,984
|
|
98,764
|
|
124,581
|
Real estate owned,
net
|
524
|
|
413
|
|
450
|
|
1,205
|
|
929
|
Nonperforming
assets
|
$
79,785
|
|
82,393
|
|
84,434
|
|
99,969
|
|
125,510
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to
total loans
|
0.71 %
|
|
0.75 %
|
|
0.78 %
|
|
0.95 %
|
|
1.23 %
|
Nonperforming assets to
total assets
|
0.56 %
|
|
0.58 %
|
|
0.61 %
|
|
0.71 %
|
|
0.87 %
|
Allowance for credit
losses to total loans
|
1.09 %
|
|
1.08 %
|
|
1.02 %
|
|
0.94 %
|
|
0.98 %
|
Allowance for total
loans excluding PPP loan balances
|
1.09 %
|
|
1.08 %
|
|
1.02 %
|
|
0.95 %
|
|
0.98 %
|
Allowance for credit
losses to nonperforming loans
|
152.98 %
|
|
143.98 %
|
|
130.76 %
|
|
99.59 %
|
|
79.70 %
|
Northwest
Bancshares, Inc. and Subsidiaries
Loans by Credit
Quality Indicators (Unaudited)
(dollars in
thousands)
|
|
At March 31,
2023
|
|
Pass
|
|
Special
mention
*
|
|
Substandard
**
|
|
Doubtful
|
|
Loss
|
|
Loans
receivable
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage loans
|
|
$
3,499,135
|
|
—
|
|
6,330
|
|
—
|
|
—
|
|
3,505,465
|
Home equity
loans
|
|
1,277,915
|
|
—
|
|
3,631
|
|
—
|
|
—
|
|
1,281,546
|
Consumer
loans
|
|
2,227,379
|
|
—
|
|
4,754
|
|
—
|
|
—
|
|
2,232,133
|
Total Personal
Banking
|
|
7,004,429
|
|
—
|
|
14,715
|
|
—
|
|
—
|
|
7,019,144
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate loans
|
|
2,585,676
|
|
69,837
|
|
171,591
|
|
—
|
|
—
|
|
2,827,104
|
Commercial
loans
|
|
1,217,344
|
|
6,381
|
|
22,298
|
|
—
|
|
—
|
|
1,246,023
|
Total Commercial
Banking
|
|
3,803,020
|
|
76,218
|
|
193,889
|
|
—
|
|
—
|
|
4,073,127
|
Total loans
|
|
$ 10,807,449
|
|
76,218
|
|
208,604
|
|
—
|
|
—
|
|
11,092,271
|
At December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage loans
|
|
$
3,484,870
|
|
—
|
|
13,729
|
|
—
|
|
—
|
|
3,498,599
|
Home equity
loans
|
|
1,292,146
|
|
—
|
|
5,528
|
|
—
|
|
—
|
|
1,297,674
|
Consumer
loans
|
|
2,164,220
|
|
—
|
|
4,435
|
|
—
|
|
—
|
|
2,168,655
|
Total Personal
Banking
|
|
6,941,236
|
|
—
|
|
23,692
|
|
—
|
|
—
|
|
6,964,928
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate loans
|
|
2,579,809
|
|
55,076
|
|
188,670
|
|
—
|
|
—
|
|
2,823,555
|
Commercial
loans
|
|
1,100,707
|
|
7,384
|
|
23,878
|
|
—
|
|
—
|
|
1,131,969
|
Total Commercial
Banking
|
|
3,680,516
|
|
62,460
|
|
212,548
|
|
—
|
|
—
|
|
3,955,524
|
Total loans
|
|
$ 10,621,752
|
|
62,460
|
|
236,240
|
|
—
|
|
—
|
|
10,920,452
|
At September 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage loans
|
|
$
3,388,168
|
|
—
|
|
13,730
|
|
—
|
|
—
|
|
3,401,898
|
Home equity
loans
|
|
1,279,968
|
|
—
|
|
5,021
|
|
—
|
|
—
|
|
1,284,989
|
Consumer
loans
|
|
2,112,478
|
|
—
|
|
3,760
|
|
—
|
|
—
|
|
2,116,238
|
Total Personal
Banking
|
|
6,780,614
|
|
—
|
|
22,511
|
|
—
|
|
—
|
|
6,803,125
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate loans
|
|
2,589,648
|
|
34,684
|
|
188,498
|
|
—
|
|
—
|
|
2,812,830
|
Commercial
loans
|
|
1,094,830
|
|
4,004
|
|
26,736
|
|
—
|
|
—
|
|
1,125,570
|
Total Commercial
Banking
|
|
3,684,478
|
|
38,688
|
|
215,234
|
|
—
|
|
—
|
|
3,938,400
|
Total loans
|
|
$ 10,465,092
|
|
38,688
|
|
237,745
|
|
—
|
|
—
|
|
10,741,525
|
At June 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage loans
|
|
$
3,273,117
|
|
—
|
|
13,658
|
|
—
|
|
—
|
|
3,286,775
|
Home equity
loans
|
|
1,275,124
|
|
—
|
|
5,368
|
|
—
|
|
—
|
|
1,280,492
|
Consumer
loans
|
|
1,998,863
|
|
—
|
|
3,682
|
|
—
|
|
—
|
|
2,002,545
|
Total Personal
Banking
|
|
6,547,104
|
|
—
|
|
22,708
|
|
—
|
|
—
|
|
6,569,812
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate loans
|
|
2,600,207
|
|
51,540
|
|
224,429
|
|
—
|
|
—
|
|
2,876,176
|
Commercial
loans
|
|
954,129
|
|
2,468
|
|
30,239
|
|
—
|
|
—
|
|
986,836
|
Total Commercial
Banking
|
|
3,554,336
|
|
54,008
|
|
254,668
|
|
—
|
|
—
|
|
3,863,012
|
Total loans
|
|
$ 10,101,440
|
|
54,008
|
|
277,376
|
|
—
|
|
—
|
|
10,432,824
|
At March 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage loans
|
|
$
3,108,366
|
|
—
|
|
13,523
|
|
—
|
|
—
|
|
3,121,889
|
Home equity
loans
|
|
1,280,342
|
|
—
|
|
6,178
|
|
—
|
|
—
|
|
1,286,520
|
Consumer
loans
|
|
1,892,162
|
|
—
|
|
3,819
|
|
—
|
|
—
|
|
1,895,981
|
Total Personal
Banking
|
|
6,280,870
|
|
—
|
|
23,520
|
|
—
|
|
—
|
|
6,304,390
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate loans
|
|
2,633,808
|
|
62,091
|
|
263,994
|
|
—
|
|
—
|
|
2,959,893
|
Commercial
loans
|
|
839,125
|
|
3,277
|
|
32,349
|
|
—
|
|
—
|
|
874,751
|
Total Commercial
Banking
|
|
3,472,933
|
|
65,368
|
|
296,343
|
|
—
|
|
—
|
|
3,834,644
|
Total loans
|
|
$
9,753,803
|
|
65,368
|
|
319,863
|
|
—
|
|
—
|
|
10,139,034
|
|
|
*
|
Includes $7.4 million,
$7.4 million, $4.5 million, $7.4 million, and $4.4 million of
acquired loans at March 31, 2023, December 31, 2022, September 30,
2022,
June 30, 2022, and
March 31, 2022, respectively.
|
**
|
Includes $31.9 million,
$39.1 million, $51.4 million, $59.3 million, and $71.9 million of
acquired loans at March 31, 2023, December 31, 2022, September 30,
2022, June 30, 2022, and March 31, 2022, respectively.
|
Northwest
Bancshares, Inc. and Subsidiaries
Loan Delinquency
(Unaudited)
(dollars in
thousands)
|
|
|
March 31,
2023
|
|
*
|
|
December 31,
2022
|
|
*
|
|
September
30,
2022
|
|
*
|
|
June 30,
2022
|
|
*
|
|
March 31,
2022
|
|
*
|
(Number of loans and
dollar amount of loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 30
days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
259
|
|
$
26,992
|
|
0.8 %
|
|
304
|
|
$
29,487
|
|
0.8 %
|
|
26
|
|
$
1,052
|
|
— %
|
|
20
|
|
$ 785
|
|
— %
|
|
281
|
|
$
24,057
|
|
0.8 %
|
Home equity
loans
|
111
|
|
4,235
|
|
0.3 %
|
|
145
|
|
6,657
|
|
0.5 %
|
|
88
|
|
3,278
|
|
0.3 %
|
|
107
|
|
3,664
|
|
0.3 %
|
|
105
|
|
3,867
|
|
0.3 %
|
Consumer
loans
|
587
|
|
6,930
|
|
0.3 %
|
|
737
|
|
9,435
|
|
0.4 %
|
|
549
|
|
6,546
|
|
0.3 %
|
|
563
|
|
6,898
|
|
0.3 %
|
|
523
|
|
6,043
|
|
0.3 %
|
Commercial real estate
loans
|
23
|
|
4,834
|
|
0.2 %
|
|
29
|
|
4,008
|
|
0.1 %
|
|
13
|
|
1,332
|
|
— %
|
|
26
|
|
2,701
|
|
0.1 %
|
|
25
|
|
3,643
|
|
0.1 %
|
Commercial
loans
|
46
|
|
4,253
|
|
0.3 %
|
|
51
|
|
2,648
|
|
0.2 %
|
|
48
|
|
2,582
|
|
0.2 %
|
|
24
|
|
1,486
|
|
0.2 %
|
|
16
|
|
1,268
|
|
0.1 %
|
Total loans delinquent
30 days to 59 days
|
1,026
|
|
$
47,244
|
|
0.4 %
|
|
1,266
|
|
$
52,235
|
|
0.5 %
|
|
724
|
|
$
14,790
|
|
0.1 %
|
|
740
|
|
$
15,534
|
|
0.1 %
|
|
950
|
|
$
38,878
|
|
0.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60
days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
23
|
|
$
1,922
|
|
0.1 %
|
|
65
|
|
$
5,563
|
|
0.2 %
|
|
51
|
|
$
4,320
|
|
0.1 %
|
|
61
|
|
$
5,941
|
|
0.2 %
|
|
24
|
|
$
1,950
|
|
0.1 %
|
Home equity
loans
|
31
|
|
1,061
|
|
0.1 %
|
|
29
|
|
975
|
|
0.1 %
|
|
36
|
|
1,227
|
|
0.1 %
|
|
28
|
|
952
|
|
0.1 %
|
|
28
|
|
1,138
|
|
0.1 %
|
Consumer
loans
|
185
|
|
2,083
|
|
0.1 %
|
|
255
|
|
3,070
|
|
0.1 %
|
|
223
|
|
2,663
|
|
0.1 %
|
|
178
|
|
1,460
|
|
0.1 %
|
|
159
|
|
1,839
|
|
0.1 %
|
Commercial real estate
loans
|
17
|
|
1,949
|
|
0.1 %
|
|
16
|
|
2,377
|
|
0.1 %
|
|
13
|
|
1,741
|
|
0.1 %
|
|
9
|
|
1,472
|
|
0.1 %
|
|
1
|
|
112
|
|
— %
|
Commercial
loans
|
19
|
|
1,088
|
|
0.1 %
|
|
24
|
|
1,115
|
|
0.1 %
|
|
14
|
|
808
|
|
0.1 %
|
|
6
|
|
341
|
|
— %
|
|
3
|
|
103
|
|
— %
|
Total loans delinquent
60 days to 89 days
|
275
|
|
$
8,103
|
|
0.1 %
|
|
389
|
|
$
13,100
|
|
0.1 %
|
|
337
|
|
$
10,759
|
|
0.1 %
|
|
282
|
|
$
10,166
|
|
0.1 %
|
|
215
|
|
$
5,142
|
|
0.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90
days or more: **
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
39
|
|
$
3,300
|
|
0.1 %
|
|
65
|
|
$
5,574
|
|
0.2 %
|
|
64
|
|
$
5,544
|
|
0.2 %
|
|
63
|
|
$
5,445
|
|
0.2 %
|
|
47
|
|
$
3,976
|
|
0.1 %
|
Home equity
loans
|
65
|
|
2,190
|
|
0.2 %
|
|
68
|
|
2,257
|
|
0.2 %
|
|
65
|
|
1,779
|
|
0.1 %
|
|
69
|
|
2,081
|
|
0.2 %
|
|
91
|
|
2,968
|
|
0.2 %
|
Consumer
loans
|
313
|
|
3,279
|
|
0.1 %
|
|
334
|
|
3,079
|
|
0.1 %
|
|
289
|
|
2,388
|
|
0.1 %
|
|
286
|
|
2,321
|
|
0.1 %
|
|
287
|
|
2,202
|
|
0.1 %
|
Commercial real estate
loans
|
18
|
|
8,010
|
|
0.3 %
|
|
19
|
|
7,867
|
|
0.3 %
|
|
22
|
|
8,821
|
|
0.3 %
|
|
31
|
|
14,949
|
|
0.5 %
|
|
41
|
|
21,399
|
|
0.7 %
|
Commercial
loans
|
24
|
|
1,302
|
|
0.1 %
|
|
15
|
|
1,829
|
|
0.2 %
|
|
11
|
|
638
|
|
0.1 %
|
|
10
|
|
583
|
|
0.1 %
|
|
10
|
|
795
|
|
0.1 %
|
Total loans delinquent
90 days or more
|
459
|
|
$
18,081
|
|
0.2 %
|
|
501
|
|
$
20,606
|
|
0.2 %
|
|
451
|
|
$
19,170
|
|
0.2 %
|
|
459
|
|
$
25,379
|
|
0.2 %
|
|
476
|
|
$
31,340
|
|
0.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
delinquent
|
1,760
|
|
$
73,428
|
|
0.7 %
|
|
2,156
|
|
$
85,941
|
|
0.8 %
|
|
1,512
|
|
$
44,719
|
|
0.4 %
|
|
1,481
|
|
$
51,079
|
|
0.5 %
|
|
1,641
|
|
$
75,360
|
|
0.7 %
|
|
|
*
|
Represents delinquency,
in dollars, divided by the respective total amount of that type of
loan outstanding.
|
**
|
Includes purchased
credit deteriorated loans of $331,000, $1.7 million, $783,000, $6.3
million, and $7.1 million at March 31, 2023, December 31, 2022,
September 30, 2022, June 30, 2022, and March 31, 2022,
respectively.
|
Northwest
Bancshares, Inc. and Subsidiaries
Allowance for Credit
Losses (Unaudited)
(dollars in
thousands)
|
|
|
Quarter ended
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
Beginning
balance
|
$ 118,036
|
|
109,819
|
|
98,355
|
|
99,295
|
|
102,241
|
ASU 2022-02
Adoption
|
426
|
|
—
|
|
—
|
|
—
|
|
—
|
Provision
|
4,870
|
|
9,023
|
|
7,689
|
|
2,629
|
|
(1,481)
|
Charge-offs residential
mortgage
|
(207)
|
|
(546)
|
|
(166)
|
|
(138)
|
|
(1,183)
|
Charge-offs home
equity
|
(164)
|
|
(232)
|
|
(535)
|
|
(255)
|
|
(447)
|
Charge-offs
consumer
|
(2,734)
|
|
(2,430)
|
|
(2,341)
|
|
(1,912)
|
|
(1,723)
|
Charge-offs commercial
real estate
|
(657)
|
|
(621)
|
|
(1,329)
|
|
(4,392)
|
|
(1,024)
|
Charge-offs
commercial
|
(865)
|
|
(404)
|
|
(243)
|
|
(329)
|
|
(681)
|
Recoveries
|
2,552
|
|
3,427
|
|
8,389
|
|
3,457
|
|
3,593
|
Ending
balance
|
$ 121,257
|
|
118,036
|
|
109,819
|
|
98,355
|
|
99,295
|
Net charge-offs to
average loans, annualized
|
0.08 %
|
|
0.03 %
|
|
(0.14) %
|
|
0.14 %
|
|
0.06 %
|
Northwest
Bancshares, Inc. and Subsidiaries
Average Balance
Sheet (Unaudited)
(dollars in
thousands)
|
|
The following table
sets forth certain information relating to the Company's average
balance sheet and reflects the average yield on assets and average
cost of liabilities for the periods indicated. Such yields and
costs are derived by dividing income or expense by the average
balance of assets or liabilities, respectively, for the periods
presented. Average balances are calculated using daily
averages.
|
|
|
Quarter ended
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage loans
|
$
3,493,617
|
|
32,009
|
|
3.66 %
|
|
$
3,439,401
|
|
30,974
|
|
3.60 %
|
|
$
3,331,173
|
|
29,414
|
|
3.53 %
|
|
$
3,171,469
|
|
27,327
|
|
3.45 %
|
|
$
2,980,788
|
|
25,542
|
|
3.43 %
|
Home equity
loans
|
1,284,425
|
|
16,134
|
|
5.09 %
|
|
1,282,733
|
|
15,264
|
|
4.72 %
|
|
1,274,918
|
|
13,658
|
|
4.25 %
|
|
1,277,440
|
|
11,961
|
|
3.76 %
|
|
1,293,986
|
|
11,472
|
|
3.60 %
|
Consumer
loans
|
2,123,672
|
|
20,794
|
|
3.97 %
|
|
2,069,207
|
|
19,709
|
|
3.78 %
|
|
1,981,754
|
|
17,256
|
|
3.45 %
|
|
1,880,769
|
|
15,777
|
|
3.36 %
|
|
1,799,037
|
|
14,907
|
|
3.36 %
|
Commercial real
estate loans
|
2,824,120
|
|
37,031
|
|
5.24 %
|
|
2,822,008
|
|
35,428
|
|
4.91 %
|
|
2,842,597
|
|
34,158
|
|
4.70 %
|
|
2,915,750
|
|
31,844
|
|
4.32 %
|
|
3,000,204
|
|
29,757
|
|
3.97 %
|
Commercial
loans
|
1,161,298
|
|
18,353
|
|
6.32 %
|
|
1,113,178
|
|
16,315
|
|
5.74 %
|
|
1,050,124
|
|
12,978
|
|
4.84 %
|
|
912,454
|
|
9,090
|
|
3.94 %
|
|
824,770
|
|
6,897
|
|
3.34 %
|
Total loans receivable
(a) (b) (d)
|
10,887,132
|
|
124,321
|
|
4.63 %
|
|
10,726,527
|
|
117,690
|
|
4.35 %
|
|
10,480,566
|
|
107,464
|
|
4.07 %
|
|
10,157,882
|
|
95,999
|
|
3.79 %
|
|
9,898,785
|
|
88,575
|
|
3.63 %
|
Mortgage-backed
securities (c)
|
1,909,676
|
|
8,537
|
|
1.79 %
|
|
1,956,167
|
|
8,603
|
|
1.76 %
|
|
2,019,715
|
|
8,683
|
|
1.72 %
|
|
1,952,375
|
|
7,158
|
|
1.47 %
|
|
1,945,173
|
|
6,360
|
|
1.31 %
|
Investment securities
(c) (d)
|
384,717
|
|
1,761
|
|
1.83 %
|
|
386,468
|
|
1,753
|
|
1.81 %
|
|
388,755
|
|
1,762
|
|
1.81 %
|
|
376,935
|
|
1,590
|
|
1.69 %
|
|
373,694
|
|
1,540
|
|
1.65 %
|
FHLB stock, at
cost
|
39,631
|
|
690
|
|
7.06 %
|
|
26,827
|
|
419
|
|
6.19 %
|
|
14,028
|
|
148
|
|
4.19 %
|
|
13,428
|
|
82
|
|
2.44 %
|
|
13,870
|
|
81
|
|
2.38 %
|
Other interest-earning
deposits
|
30,774
|
|
423
|
|
5.50 %
|
|
9,990
|
|
153
|
|
5.99 %
|
|
253,192
|
|
1,295
|
|
2.00 %
|
|
846,142
|
|
1,684
|
|
0.79 %
|
|
1,218,960
|
|
467
|
|
0.15 %
|
Total interest-earning
assets
|
13,251,930
|
|
135,732
|
|
4.15 %
|
|
13,105,979
|
|
128,618
|
|
3.89 %
|
|
13,156,256
|
|
119,352
|
|
3.60 %
|
|
13,346,762
|
|
106,513
|
|
3.20 %
|
|
13,450,482
|
|
97,023
|
|
2.93 %
|
Noninterest-earning
assets (e)
|
869,566
|
|
|
|
|
|
877,121
|
|
|
|
|
|
896,663
|
|
|
|
|
|
909,943
|
|
|
|
|
|
973,092
|
|
|
|
|
Total assets
|
$
14,121,496
|
|
|
|
|
|
$
13,983,100
|
|
|
|
|
|
$
14,052,919
|
|
|
|
|
|
$
14,256,705
|
|
|
|
|
|
$
14,423,574
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits
(g)
|
$
2,198,988
|
|
690
|
|
0.13 %
|
|
$
2,298,451
|
|
585
|
|
0.10 %
|
|
$
2,350,248
|
|
594
|
|
0.10 %
|
|
$
2,361,919
|
|
589
|
|
0.10 %
|
|
$
2,334,494
|
|
592
|
|
0.10 %
|
Interest-bearing
demand deposits (g)
|
2,612,883
|
|
951
|
|
0.15 %
|
|
2,718,360
|
|
509
|
|
0.07 %
|
|
2,794,338
|
|
360
|
|
0.05 %
|
|
2,857,336
|
|
310
|
|
0.04 %
|
|
2,875,430
|
|
321
|
|
0.05 %
|
Money market deposit
accounts (g)
|
2,408,582
|
|
4,403
|
|
0.74 %
|
|
2,512,892
|
|
1,310
|
|
0.21 %
|
|
2,620,850
|
|
692
|
|
0.10 %
|
|
2,653,467
|
|
668
|
|
0.10 %
|
|
2,668,105
|
|
653
|
|
0.10 %
|
Time deposits
(g)
|
1,293,609
|
|
5,194
|
|
1.63 %
|
|
1,024,895
|
|
1,467
|
|
0.57 %
|
|
1,110,906
|
|
1,511
|
|
0.54 %
|
|
1,220,815
|
|
1,774
|
|
0.58 %
|
|
1,292,608
|
|
2,185
|
|
0.69 %
|
Borrowed funds
(f)
|
740,218
|
|
7,938
|
|
4.35 %
|
|
451,369
|
|
3,967
|
|
3.49 %
|
|
127,073
|
|
239
|
|
0.75 %
|
|
123,749
|
|
167
|
|
0.54 %
|
|
135,289
|
|
158
|
|
0.47 %
|
Subordinated
debt
|
113,870
|
|
1,148
|
|
4.03 %
|
|
113,783
|
|
1,148
|
|
4.04 %
|
|
113,695
|
|
1,149
|
|
4.04 %
|
|
119,563
|
|
1,203
|
|
4.03 %
|
|
123,608
|
|
1,250
|
|
4.05 %
|
Junior subordinated
debentures
|
129,335
|
|
2,152
|
|
6.66 %
|
|
129,271
|
|
1,823
|
|
5.52 %
|
|
129,207
|
|
1,322
|
|
4.00 %
|
|
129,142
|
|
920
|
|
2.82 %
|
|
129,077
|
|
651
|
|
2.02 %
|
Total interest-bearing
liabilities
|
9,497,485
|
|
22,476
|
|
0.96 %
|
|
9,249,021
|
|
10,809
|
|
0.46 %
|
|
9,246,317
|
|
5,867
|
|
0.25 %
|
|
9,465,991
|
|
5,631
|
|
0.24 %
|
|
9,558,611
|
|
5,810
|
|
0.25 %
|
Noninterest-bearing
demand deposits (g)
|
2,889,973
|
|
|
|
|
|
3,039,000
|
|
|
|
|
|
3,093,490
|
|
|
|
|
|
3,090,372
|
|
|
|
|
|
3,060,698
|
|
|
|
|
Noninterest-bearing
liabilities
|
235,213
|
|
|
|
|
|
229,794
|
|
|
|
|
|
209,486
|
|
|
|
|
|
193,510
|
|
|
|
|
|
203,537
|
|
|
|
|
Total
liabilities
|
12,622,671
|
|
|
|
|
|
12,517,815
|
|
|
|
|
|
12,549,293
|
|
|
|
|
|
12,749,873
|
|
|
|
|
|
12,822,846
|
|
|
|
|
Shareholders'
equity
|
1,498,825
|
|
|
|
|
|
1,465,285
|
|
|
|
|
|
1,503,626
|
|
|
|
|
|
1,506,832
|
|
|
|
|
|
1,600,728
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
14,121,496
|
|
|
|
|
|
$
13,983,100
|
|
|
|
|
|
$
14,052,919
|
|
|
|
|
|
$
14,256,705
|
|
|
|
|
|
$
14,423,574
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
113,256
|
|
3.19 %
|
|
|
|
117,809
|
|
3.43 %
|
|
|
|
113,485
|
|
3.35 %
|
|
|
|
100,882
|
|
2.96 %
|
|
|
|
91,213
|
|
2.68 %
|
Net interest-earning
assets/Net interest margin
|
$
3,754,445
|
|
|
|
3.47 %
|
|
$
3,856,958
|
|
|
|
3.57 %
|
|
$
3,909,939
|
|
|
|
3.42 %
|
|
$
3,880,771
|
|
|
|
3.07 %
|
|
$
3,891,871
|
|
|
|
2.75 %
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.40X
|
|
|
|
|
|
1.42X
|
|
|
|
|
|
1.42X
|
|
|
|
|
|
1.41X
|
|
|
|
|
|
1.41X
|
|
|
|
|
|
|
(a)
|
Average gross loans
receivable includes loans held as available-for-sale and loans
placed on nonaccrual status.
|
(b)
|
Interest income
includes accretion/amortization of deferred loan fees/expenses,
which was not material.
|
(c)
|
Average balances do not
include the effect of unrealized gains or losses on securities held
as available-for-sale.
|
(d)
|
Interest income on
tax-free investment securities and tax-free loans are presented on
a fully taxable equivalent ("FTE") basis.
|
(e)
|
Average balances
include the effect of unrealized gains or losses on securities held
as available-for-sale.
|
(f)
|
Average balances
include FHLB borrowings and collateralized borrowings.
|
(g)
|
Average cost of
deposits were 0.40%, 0.13%, 0.11%, 0.11%, and 0.12%, respectively
and average cost of Interest-bearing deposits were 0.54%, 0.18%,
0.14%, 0.15%, and 0.17%, respectively.
|
(h)
|
Shown on a FTE basis.
GAAP basis yields for the periods indicated were: Loans — 4.61%,
4.33%, 4.05%, 3.77%, and 3.61%, respectively, Investment
securities — 1.61%, 1.59%, 1.59%, 1.48%, and 1.45%,
respectively, Interest-earning assets — 4.13%, 3.87%,
3.58%, 3.18%, and 2.91%, respectively. GAAP basis net interest rate
spreads were 3.17%, 3.41%, 3.33%, 2.94%, and 2.66%, respectively,
and GAAP basis net interest margins were 3.44%, 3.54%, 3.40%,
3.05%, and 2.73%, respectively.
|
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SOURCE Northwest Bancshares, Inc.