COLUMBUS, Ohio, July 24,
2023 /PRNewswire/ -- Northwest Bancshares, Inc., (the
"Company"), (NasdaqGS: NWBI) announced net income for the quarter
ended June 30, 2023 of $33.0 million, or $0.26 per diluted share. This represents a
decrease of $382,000, or 1.1%,
compared to the same quarter last year, when net income was
$33.4 million, or $0.26 per diluted share. The annualized returns
on average shareholders' equity and average assets for the quarter
ended June 30, 2023 were 8.72% and
0.93% compared to 8.90% and 0.94% 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 August 14, 2023 to shareholders of record
as of August 3, 2023. This is the 115th consecutive
quarter in which the Company has paid a cash dividend. Based on the
market value of the Company's common stock as of June 30, 2023, this represents an annualized
dividend yield of approximately 7.5%.
Louis J. Torchio, President and
CEO, added, "We are very pleased with the positioning and strength
of our balance sheet during the past twelve months as we have been
able to grow loans by almost $840.0
million, or approximately 8.0%, over that time period by
reallocating cash and investments to higher yielding earning
assets. Specifically, as a result of the new commercial lending
verticals we have recently implemented, commercial loans have grown
$416.9 million, or 42.2%, over the
past year. As part of this balance sheet shift towards commercial
banking, we sold the mortgage servicing rights on approximately
$1.3 billion of one- to four family
mortgage loans for an $8.3 million
gain, which enabled us to sell approximately $110.0 million of investment securities for an
equivalent loss, resulting in no impact to tangible capital. We
were then able to reallocate these funds from investments yielding
approximately 2.0% into commercial loan originations yielding over
7.0%. In addition, our overall deposit balances remained stable
during the most recent quarter, although we continue to see
customers shift into higher yielding deposit products. Tangible
common equity remains strong at over 8.0% and asset quality
continues to perform well."
Mr. Torchio continued, "with the continued inversion in the
yield curve and the change in our customer deposit mix, as well as
higher borrowing costs and balances, the increase in our overall
cost of funds continued to outpace our yield improvement, which
resulted in net interest margin compression on a linked quarter
basis to 3.28% from 3.47%. We expect some additional net interest
margin compression could continue for the remainder of the
year."
Net interest income increased by $8.3
million, or 8.3%, to $108.5
million for the quarter ended June 30, 2023, from
$100.3 million for the quarter ended
June 30, 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 the past year. Cash
and marketable securities were redeployed into higher yielding
loans, which, along with higher market interest rates, caused the
yield on interest-earning assets to increase to 4.34% for the
quarter ended June 30, 2023 from
3.20% for the quarter ended June 30,
2022. Interest income on loans receivable increased
$37.2 million, or 38.9%, due to an
increase of $907.8 million, or 8.9%,
in the average balance of loans in addition to an increase in the
yield on loans to 4.83% for the quarter ended June 30, 2023 from 3.79% for the quarter ended
June 30, 2022. Partially offsetting
this increase in interest income was an increase in the cost of
interest-bearing liabilities to 1.47% for the quarter ended
June 30, 2023 from 0.24% for the
quarter ended June 30, 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 3.28% for the
quarter ended June 30, 2023 from
3.07% for the same quarter last year.
The provision for credit losses increased by $2.9 million, or 48.2%, to $8.9 million for the current quarter ended
June 30, 2023 from $6.0 million for the quarter ended June 30, 2022. This increase was primarily due to
growth within our commercial 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 $63.3 million, or 22.8%, to $214.1 million, or 1.90% of total loans, at
June 30, 2023 from $277.4 million, or 2.66% of total loans, at
June 30, 2022. Total delinquent loans
increased to $72.1 million, or 0.64%
of loans receivable, at June 30, 2023
from $51.1 million, or 0.49% of loans
receivable, at June 30, 2022. The
increase was primarily driven by two commercial loan administrative
delinquencies totaling $22.9 million
at June 30, 2023, which have
subsequently been brought current.
Noninterest income decreased by $651,000, or 2.1%, to $29.8 million for the quarter ended June 30, 2023, from $30.4
million for the quarter ended June
30, 2022. This decrease was primarily due to a decrease in
mortgage banking income of $1.1
million, or 52.3% to $1.0
million for the quarter ended June
30, 2023 from $2.2 million for
the quarter ended June 30, 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 $4.4
million, or 5.5%, to $85.9
million for the quarter ended June
30, 2023 from $81.4 million
for the quarter ended June 30, 2022.
This increase primarily resulted from a $1.7
million, or 13.1%, increase in processing expenses to
$14.6 million for the quarter ended
June 30, 2023, from $12.9 million for the quarter ended June 30, 2022 due to the implementation of
additional third party software programs. Also contributing to this
variance was a restructuring expense of $1.6
million for the quarter ended June
30, 2023 due to the severance charge for personnel changes
during the current quarter. Lastly, FDIC insurance premiums
increased $934,000, or 82.7%, to
$2.1 million for the quarter ended
June 30, 2023 from $1.1 million for the quarter ended June 30, 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 $663,000, or 6.7%, to $10.5 million for the quarter ended June 30, 2023 from $9.9
million for the quarter ended June
30, 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 June 30, 2023, Northwest operated 134
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)
|
|
|
June 30,
2023
|
|
December 31,
2022
|
|
June 30,
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
127,627
|
|
139,365
|
|
504,532
|
|
Marketable securities
available-for-sale (amortized cost of $1,287,101, $1,431,728 and
$1,516,743, respectively)
|
1,073,952
|
|
1,218,108
|
|
1,364,743
|
|
Marketable securities
held-to-maturity (fair value of $718,676, $751,384 and $835,565,
respectively)
|
847,845
|
|
881,249
|
|
923,180
|
|
Total cash and cash
equivalents and marketable securities
|
2,049,424
|
|
2,238,722
|
|
2,792,455
|
|
|
|
|
|
|
|
Loans
held-for-sale
|
16,077
|
|
9,913
|
|
31,153
|
|
Residential mortgage
loans
|
3,479,080
|
|
3,488,686
|
|
3,255,622
|
|
Home equity
loans
|
1,276,062
|
|
1,297,674
|
|
1,280,492
|
|
Consumer
loans
|
2,201,062
|
|
2,168,655
|
|
2,002,545
|
|
Commercial real estate
loans
|
2,895,224
|
|
2,823,555
|
|
2,876,176
|
|
Commercial
loans
|
1,403,726
|
|
1,131,969
|
|
986,836
|
|
Total loans
receivable
|
11,271,231
|
|
10,920,452
|
|
10,432,824
|
|
Allowance for credit
losses
|
(124,423)
|
|
(118,036)
|
|
(98,355)
|
|
Loans receivable,
net
|
11,146,808
|
|
10,802,416
|
|
10,334,469
|
|
|
|
|
|
|
|
FHLB stock, at
cost
|
44,613
|
|
40,143
|
|
13,362
|
|
Accrued interest
receivable
|
37,281
|
|
35,528
|
|
27,708
|
|
Real estate owned,
net
|
371
|
|
413
|
|
1,205
|
|
Premises and equipment,
net
|
139,915
|
|
145,909
|
|
146,869
|
|
Bank-owned life
insurance
|
257,614
|
|
255,062
|
|
254,109
|
|
Goodwill
|
380,997
|
|
380,997
|
|
380,997
|
|
Other intangible
assets, net
|
6,809
|
|
8,560
|
|
10,538
|
|
Other assets
|
227,659
|
|
205,574
|
|
192,983
|
|
Total
assets
|
$
14,291,491
|
|
14,113,324
|
|
14,154,695
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$ 2,820,563
|
|
2,993,243
|
|
3,058,249
|
|
Interest-bearing demand
deposits
|
2,577,653
|
|
2,686,431
|
|
2,858,691
|
|
Money market deposit
accounts
|
2,154,253
|
|
2,457,569
|
|
2,631,712
|
|
Savings
deposits
|
2,120,215
|
|
2,275,020
|
|
2,362,725
|
|
Time
deposits
|
1,989,711
|
|
1,052,285
|
|
1,155,878
|
|
Total
deposits
|
11,662,395
|
|
11,464,548
|
|
12,067,255
|
|
|
|
|
|
|
|
Borrowed
funds
|
632,313
|
|
681,166
|
|
130,490
|
|
Subordinated
debt
|
114,015
|
|
113,840
|
|
113,666
|
|
Junior subordinated
debentures
|
129,444
|
|
129,314
|
|
129,184
|
|
Advances by borrowers
for taxes and insurance
|
57,143
|
|
47,613
|
|
55,622
|
|
Accrued interest
payable
|
4,936
|
|
3,231
|
|
1,725
|
|
Other
liabilities
|
179,744
|
|
182,126
|
|
162,214
|
|
Total
liabilities
|
12,779,990
|
|
12,621,838
|
|
12,660,156
|
|
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, 127,088,963, 127,028,848 and
126,881,766 shares issued and outstanding, respectively
|
1,271
|
|
1,270
|
|
1,269
|
|
Additional paid-in
capital
|
1,022,189
|
|
1,019,647
|
|
1,015,349
|
|
Retained
earnings
|
657,292
|
|
641,727
|
|
620,551
|
|
Accumulated other
comprehensive loss
|
(169,251)
|
|
(171,158)
|
|
(142,630)
|
|
Total shareholders'
equity
|
1,511,501
|
|
1,491,486
|
|
1,494,539
|
|
Total liabilities and
shareholders' equity
|
$
14,291,491
|
|
14,113,324
|
|
14,154,695
|
|
|
|
|
|
|
|
Equity to
assets
|
10.58 %
|
|
10.57 %
|
|
10.56 %
|
|
Tangible common equity
to assets*
|
8.08 %
|
|
8.03 %
|
|
8.01 %
|
|
Book value per
share
|
$
11.89
|
|
11.74
|
|
11.78
|
|
Tangible book value
per share*
|
$
8.84
|
|
8.67
|
|
8.69
|
|
Closing market price
per share
|
$
10.60
|
|
13.98
|
|
12.80
|
|
Full time equivalent
employees
|
2,025
|
|
2,160
|
|
2,188
|
|
Number of banking
offices
|
142
|
|
150
|
|
150
|
|
|
|
*
|
Excludes goodwill and
other intangible assets (non-GAAP). See reconciliation of
non-GAAP financial measures for additional information relating to
these items.
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Consolidated
Statements of Income (Unaudited)
(dollars in
thousands, except per share amounts)
|
|
|
Quarter ended
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
June 30,
2022
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
$
132,724
|
|
123,745
|
|
117,137
|
|
106,943
|
|
95,574
|
|
Mortgage-backed
securities
|
8,326
|
|
8,537
|
|
8,603
|
|
8,683
|
|
7,158
|
|
Taxable investment
securities
|
841
|
|
845
|
|
840
|
|
838
|
|
715
|
|
Tax-free investment
securities
|
667
|
|
700
|
|
701
|
|
709
|
|
683
|
|
FHLB stock
dividends
|
844
|
|
690
|
|
419
|
|
148
|
|
82
|
|
Interest-earning
deposits
|
594
|
|
423
|
|
153
|
|
1,295
|
|
1,684
|
|
Total interest
income
|
143,996
|
|
134,940
|
|
127,853
|
|
118,616
|
|
105,896
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
21,817
|
|
11,238
|
|
3,871
|
|
3,157
|
|
3,341
|
|
Borrowed
funds
|
13,630
|
|
11,238
|
|
6,938
|
|
2,710
|
|
2,290
|
|
Total interest
expense
|
35,447
|
|
22,476
|
|
10,809
|
|
5,867
|
|
5,631
|
|
Net interest
income
|
108,549
|
|
112,464
|
|
117,044
|
|
112,749
|
|
100,265
|
|
Provision
for credit losses - loans
|
6,010
|
|
4,870
|
|
9,023
|
|
7,689
|
|
2,629
|
|
Provision for credit
losses - unfunded commitments (1)
|
2,920
|
|
126
|
|
1,876
|
|
3,585
|
|
3,396
|
|
Net interest income
after provision for credit losses
|
99,619
|
|
107,468
|
|
106,145
|
|
101,475
|
|
94,240
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
investments
|
(8,306)
|
|
—
|
|
(1)
|
|
(2)
|
|
(3)
|
|
Gain on sale of
mortgage servicing rights
|
8,305
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Gain on sale of SBA
loans
|
832
|
|
279
|
|
—
|
|
—
|
|
—
|
|
Service charges and
fees
|
14,833
|
|
13,189
|
|
14,125
|
|
14,323
|
|
13,673
|
|
Trust and other
financial services income
|
6,866
|
|
6,449
|
|
6,642
|
|
6,650
|
|
7,461
|
|
Gain on real estate
owned, net
|
785
|
|
108
|
|
51
|
|
290
|
|
291
|
|
Income from bank-owned
life insurance
|
1,304
|
|
1,269
|
|
1,663
|
|
1,475
|
|
2,008
|
|
Mortgage banking
income
|
1,028
|
|
524
|
|
477
|
|
766
|
|
2,157
|
|
Other operating
income
|
4,150
|
|
2,151
|
|
4,901
|
|
3,301
|
|
4,861
|
|
Total noninterest
income
|
29,797
|
|
23,969
|
|
27,858
|
|
26,803
|
|
30,448
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
47,650
|
|
46,604
|
|
46,658
|
|
46,711
|
|
48,073
|
|
Premises and occupancy
costs
|
7,579
|
|
7,471
|
|
7,370
|
|
7,171
|
|
7,280
|
|
Office
operations
|
2,800
|
|
3,010
|
|
3,544
|
|
3,229
|
|
3,162
|
|
Collections
expense
|
429
|
|
387
|
|
563
|
|
322
|
|
403
|
|
Processing
expenses
|
14,648
|
|
14,350
|
|
13,585
|
|
13,416
|
|
12,947
|
|
Marketing
expenses
|
2,856
|
|
2,892
|
|
2,773
|
|
2,147
|
|
2,047
|
|
Federal deposit
insurance premiums
|
2,064
|
|
2,223
|
|
1,319
|
|
1,200
|
|
1,130
|
|
Professional
services
|
3,804
|
|
4,758
|
|
5,434
|
|
3,363
|
|
3,333
|
|
Amortization of
intangible assets
|
842
|
|
909
|
|
932
|
|
1,047
|
|
1,115
|
|
Real estate owned
expense
|
83
|
|
181
|
|
53
|
|
61
|
|
72
|
|
Merger, asset
disposition and restructuring expense
|
1,593
|
|
2,802
|
|
4,243
|
|
—
|
|
—
|
|
Other
expenses
|
1,510
|
|
1,863
|
|
2,304
|
|
321
|
|
1,849
|
|
Total noninterest
expense
|
85,858
|
|
87,450
|
|
88,778
|
|
78,988
|
|
81,411
|
|
Income before income
taxes
|
43,558
|
|
43,987
|
|
45,225
|
|
49,290
|
|
43,277
|
|
Income tax
expense
|
10,514
|
|
10,308
|
|
10,576
|
|
11,986
|
|
9,851
|
|
Net income
|
$
33,044
|
|
33,679
|
|
34,649
|
|
37,304
|
|
33,426
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
0.26
|
|
0.27
|
|
0.27
|
|
0.29
|
|
0.26
|
|
Diluted earnings per
share
|
$
0.26
|
|
0.26
|
|
0.27
|
|
0.29
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average equity
|
8.72 %
|
|
9.11 %
|
|
9.38 %
|
|
9.84 %
|
|
8.90 %
|
|
Annualized return on
average assets
|
0.93 %
|
|
0.97 %
|
|
0.98 %
|
|
1.05 %
|
|
0.94 %
|
|
Annualized return on
tangible common equity *
|
11.79 %
|
|
12.15 %
|
|
12.48 %
|
|
13.84 %
|
|
12.16 %
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
62.06 %
|
|
64.10 %
|
|
61.27 %
|
|
56.60 %
|
|
62.28 %
|
|
Efficiency ratio,
excluding certain items (1) **
|
60.30 %
|
|
61.38 %
|
|
57.70 %
|
|
55.85 %
|
|
61.43 %
|
|
Annualized noninterest
expense to average assets
|
2.42 %
|
|
2.51 %
|
|
2.52 %
|
|
2.23 %
|
|
2.29 %
|
|
Annualized noninterest
expense to average assets, excluding certain items (1)
**
|
2.35 %
|
|
2.40 %
|
|
2.37 %
|
|
2.20 %
|
|
2.26 %
|
|
|
|
(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). See reconciliation of
non-GAAP financial measures for additional information relating to
these items.
|
|
**
|
Excludes amortization
of intangible assets and merger, asset disposition and
restructuring expenses (non-GAAP).See reconciliation of non-GAAP
financial measures for additional information relating to these
items.
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Consolidated
Statements of Income (Unaudited)
(dollars in
thousands, except per share amounts)
|
|
|
Six months ended
June 30,
|
|
2023
|
|
2022
|
|
Interest
income:
|
|
|
|
|
Loans
receivable
|
$
256,469
|
|
183,748
|
|
Mortgage-backed
securities
|
16,863
|
|
13,518
|
|
Taxable investment
securities
|
1,686
|
|
1,392
|
|
Tax-free investment
securities
|
1,367
|
|
1,357
|
|
FHLB stock
dividends
|
1,534
|
|
163
|
|
Interest-earning
deposits
|
1,017
|
|
2,151
|
|
Total interest
income
|
278,936
|
|
202,329
|
|
Interest
expense:
|
|
|
|
|
Deposits
|
33,055
|
|
7,092
|
|
Borrowed
funds
|
24,868
|
|
4,349
|
|
Total interest
expense
|
57,923
|
|
11,441
|
|
Net interest
income
|
221,013
|
|
190,888
|
|
Provision for credit
losses - loans
|
10,880
|
|
1,148
|
|
Provision for credit
losses - unfunded commitments (1)
|
3,046
|
|
4,992
|
|
Net interest income
after provision for credit losses
|
207,087
|
|
184,748
|
|
Noninterest
income:
|
|
|
|
|
Loss on sale of
investments
|
(8,306)
|
|
(5)
|
|
Gain on sale of
mortgage servicing rights
|
8,305
|
|
—
|
|
Gain on sale of SBA
loans
|
1,111
|
|
—
|
|
Service charges and
fees
|
28,022
|
|
26,740
|
|
Trust and other
financial services income
|
13,315
|
|
14,473
|
|
Gain on real estate
owned, net
|
893
|
|
262
|
|
Income from bank-owned
life insurance
|
2,573
|
|
3,991
|
|
Mortgage banking
income
|
1,552
|
|
3,622
|
|
Other operating
income
|
6,301
|
|
7,105
|
|
Total noninterest
income
|
53,766
|
|
56,188
|
|
Noninterest
expense:
|
|
|
|
|
Compensation and
employee benefits
|
94,254
|
|
94,990
|
|
Premises and occupancy
costs
|
15,050
|
|
15,077
|
|
Office
operations
|
5,810
|
|
6,545
|
|
Collections
expense
|
816
|
|
923
|
|
Processing
expenses
|
28,998
|
|
25,495
|
|
Marketing
expenses
|
5,748
|
|
4,175
|
|
Federal deposit
insurance premiums
|
4,287
|
|
2,259
|
|
Professional
services
|
8,562
|
|
5,906
|
|
Amortization of
intangible assets
|
1,751
|
|
2,298
|
|
Real estate owned
expense
|
264
|
|
109
|
|
Merger, asset
disposition and restructuring expense
|
4,395
|
|
1,374
|
|
Other
expenses
|
3,373
|
|
2,608
|
|
Total noninterest
expense
|
173,308
|
|
161,759
|
|
Income before income
taxes
|
87,545
|
|
79,177
|
|
Income tax
expense
|
20,822
|
|
17,464
|
|
Net income
|
$
66,723
|
|
61,713
|
|
|
|
|
|
Basic earnings per
share
|
$
0.53
|
|
0.49
|
|
Diluted earnings per
share
|
$
0.52
|
|
0.49
|
|
|
|
|
|
Annualized return on
average equity
|
8.91 %
|
|
8.01 %
|
|
Annualized return on
average assets
|
0.95 %
|
|
0.87 %
|
|
Annualized return on
tangible common equity *
|
11.97 %
|
|
11.28 %
|
|
|
|
|
|
Efficiency
ratio
|
63.07 %
|
|
65.47 %
|
|
Efficiency ratio,
excluding certain items (1) **
|
60.84 %
|
|
63.98 %
|
|
Annualized noninterest
expense to average assets
|
2.46 %
|
|
2.27 %
|
|
Annualized noninterest
expense to average assets, excluding certain items (1)
**
|
2.38 %
|
|
2.22 %
|
|
|
|
(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). See reconciliation of
non-GAAP financial measures for additional information relating to
these items.
|
|
**
|
Excludes amortization
of intangible assets and merger, asset disposition and
restructuring expenses (non-GAAP). See reconciliation of
non-GAAP financial measures for additional information relating to
these items.
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Reconciliation of
Non-GAAP Financial Measures (Unaudited) *
(dollars in
thousands, except per share amounts)
|
|
|
Quarter ended June
30,
|
|
Six months ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Reconciliation of net
income to adjusted net operating income:
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
$
33,044
|
|
33,426
|
|
66,723
|
|
61,713
|
|
Non-GAAP
adjustments
|
|
|
|
|
|
|
|
|
Add: merger, asset
disposition and restructuring expense
|
1,593
|
|
—
|
|
4,395
|
|
1,374
|
|
Less: tax benefit of
merger, asset disposition and restructuring expense
|
(446)
|
|
—
|
|
(1,231)
|
|
(385)
|
|
Adjusted net operating
income (non-GAAP)
|
$
34,191
|
|
33,426
|
|
69,887
|
|
62,702
|
|
Diluted earnings per
share (GAAP)
|
$
0.26
|
|
0.26
|
|
0.52
|
|
0.49
|
|
Diluted adjusted
operating earnings per share (non-GAAP)
|
$
0.27
|
|
0.26
|
|
0.55
|
|
0.49
|
|
|
|
|
|
|
|
|
|
Average
equity
|
$
1,519,990
|
|
1,506,832
|
|
1,509,466
|
|
1,553,520
|
|
Average
assets
|
14,245,917
|
|
14,256,705
|
|
14,184,050
|
|
14,340,034
|
|
Annualized return on
average equity (GAAP)
|
8.72 %
|
|
8.90 %
|
|
8.91 %
|
|
8.01 %
|
|
Annualized return on
average assets (GAAP)
|
0.93 %
|
|
0.94 %
|
|
0.95 %
|
|
0.87 %
|
|
Annualized return on
average equity, excluding merger, asset disposition and
restructuring expense, net of tax (non-GAAP)
|
9.02 %
|
|
8.90 %
|
|
9.34 %
|
|
8.14 %
|
|
Annualized return on
average assets, excluding merger, asset disposition and
restructuring expense, net of tax (non-GAAP)
|
0.96 %
|
|
0.94 %
|
|
0.99 %
|
|
0.88 %
|
|
|
|
|
|
|
|
|
|
The following non-GAAP
financial measures used by the Company provide information useful
to investors in understanding our operating performance and trends,
and facilitate comparisons with the performance of our peers. The
following table summarizes the non-GAAP financial measures derived
from amounts reported in the Company's Consolidated Statements of
Financial Condition.
|
|
June 30,
2023
|
|
December 31,
2022
|
|
June 30,
2022
|
|
Tangible common
equity to assets
|
|
|
|
|
|
|
Total shareholders'
equity
|
$
1,511,501
|
|
1,491,486
|
|
1,494,539
|
|
Less: goodwill
and intangible assets
|
(387,806)
|
|
(389,557)
|
|
(391,535)
|
|
Tangible common
equity
|
1,123,695
|
|
1,101,929
|
|
1,103,004
|
|
|
|
|
|
|
|
Total assets
|
14,291,491
|
|
14,113,324
|
|
14,154,695
|
|
Less: goodwill and
intangible assets
|
(387,806)
|
|
(389,557)
|
|
(391,535)
|
|
Tangible
assets
|
13,903,685
|
|
13,723,767
|
|
13,763,160
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets
|
8.08 %
|
|
8.03 %
|
|
8.01 %
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets, including unrealized losses on
held-to-maturity investments
|
|
|
|
|
|
|
Tangible common
equity
|
$
1,123,695
|
|
1,101,929
|
|
1,103,004
|
|
Less: unrealized
losses on held to maturity investments
|
(129,169)
|
|
(129,865)
|
|
(87,615)
|
|
Add: deferred taxes on
unrealized losses on held to maturity investments
|
36,167
|
|
36,362
|
|
24,532
|
|
Tangible common equity,
including unrealized losses on held-to-maturity
investments
|
1,030,693
|
|
1,008,426
|
|
1,039,921
|
|
|
|
|
|
|
|
Tangible
assets
|
13,903,685
|
|
13,723,767
|
|
13,763,160
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets, including unrealized losses on held-to-maturity
investments
|
7.41 %
|
|
7.35 %
|
|
7.56 %
|
|
|
|
|
|
|
|
Tangible book value
per share
|
|
|
|
|
|
|
Tangible common
equity
|
$
1,123,695
|
|
1,101,929
|
|
1,103,004
|
|
Common shares
outstanding
|
127,088,963
|
|
127,028,848
|
|
126,881,766
|
|
Tangible book value per
share
|
8.84
|
|
8.67
|
|
8.69
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Reconciliation of
Non-GAAP Financial Measures (Unaudited) *
(dollars in
thousands, except per share amounts)
|
|
|
The following table
summarizes the non-GAAP financial measures derived from amounts
reported in the Company's Consolidated Statements of
Income.
|
|
|
Quarter ended
|
|
Six months ended
June 30,
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Annualized return on
tangible common equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
33,044
|
|
33,679
|
|
34,649
|
|
37,304
|
|
33,426
|
|
66,723
|
|
61,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
1,511,501
|
|
1,513,275
|
|
1,491,486
|
|
1,459,786
|
|
1,494,539
|
|
1,511,501
|
|
1,494,539
|
|
Less: goodwill and
intangible assets
|
(387,806)
|
|
(388,648)
|
|
(389,557)
|
|
(390,488)
|
|
(391,535)
|
|
(387,806)
|
|
(391,535)
|
|
Tangible common
equity
|
1,123,695
|
|
1,124,627
|
|
1,101,929
|
|
1,069,298
|
|
1,103,004
|
|
1,123,695
|
|
1,103,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
tangible common equity
|
11.79 %
|
|
12.15 %
|
|
12.48 %
|
|
13.84 %
|
|
12.16 %
|
|
11.97 %
|
|
11.28 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio,
excluding amortization and merger, asset disposition and
restructuring expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
85,858
|
|
87,450
|
|
88,778
|
|
78,988
|
|
81,411
|
|
173,308
|
|
161,759
|
|
Less: amortization
expense
|
(842)
|
|
(909)
|
|
(932)
|
|
(1,047)
|
|
(1,115)
|
|
(1,751)
|
|
(2,298)
|
|
Less: merger, asset
disposition and restructuring expenses
|
(1,593)
|
|
(2,802)
|
|
(4,243)
|
|
—
|
|
—
|
|
(4,395)
|
|
(1,374)
|
|
Non-interest expense,
excluding amortization and merger, assets disposition and
restructuring expenses
|
83,423
|
|
83,739
|
|
83,603
|
|
77,941
|
|
80,296
|
|
167,162
|
|
158,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
108,549
|
|
112,464
|
|
117,044
|
|
112,749
|
|
100,265
|
|
221,013
|
|
190,888
|
|
Non-interest
income
|
29,797
|
|
23,969
|
|
27,858
|
|
26,803
|
|
30,448
|
|
53,766
|
|
56,188
|
|
Net interest income
plus non-interest income
|
138,346
|
|
136,433
|
|
144,902
|
|
139,552
|
|
130,713
|
|
274,779
|
|
247,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio,
excluding amortization and merger, asset disposition and
restructuring expenses
|
60.30 %
|
|
61.38 %
|
|
57.70 %
|
|
55.85 %
|
|
61.43 %
|
|
60.84 %
|
|
63.98 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized
non-interest expense to average assets, excluding amortization and
merger, asset disposition and restructuring expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense
excluding amortization and merger, asset disposition and
restructuring expenses
|
83,423
|
|
83,739
|
|
83,603
|
|
77,941
|
|
80,296
|
|
167,162
|
|
158,087
|
|
Average
assets
|
14,245,917
|
|
14,121,496
|
|
13,983,100
|
|
14,052,919
|
|
14,256,705
|
|
14,184,050
|
|
14,340,034
|
|
Annualized non-interest
expense to average assets, excluding amortization and merger, asset
disposition and restructuring expense
|
2.35 %
|
|
2.40 %
|
|
2.37 %
|
|
2.20 %
|
|
2.26 %
|
|
2.38 %
|
|
2.22 %
|
|
|
|
*
|
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 June 30,
2023
|
|
Balance
|
|
Percent of
total deposits
|
|
Number of
relationships
|
|
Uninsured deposits per
the Call Report (1)
|
$
2,895,624
|
|
24.83 %
|
|
4,892
|
|
Less intercompany
deposit accounts
|
889,157
|
|
7.62 %
|
|
12
|
|
Less collateralized
deposit accounts
|
553,128
|
|
4.74 %
|
|
255
|
|
Adjusted balance of
uninsured deposits
|
$
1,453,339
|
|
12.47 %
|
|
4,625
|
|
|
|
(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 $18.6
million, or 0.16% of total deposits, as of June 30, 2023. Our
top ten largest uninsured depositors, excluding intercompany and
collateralized deposit accounts, had an aggregate uninsured deposit
balance of $112.2 million, or 0.96% of total deposits, as of
June 30, 2023. The average adjusted uninsured deposit account
balance was $314,000 as of June 30, 2023.
|
|
The following table
provides additional details over the Company's deposit
portfolio:
|
|
|
As of June 30,
2023
|
|
Balance
|
|
Percent of
total deposits
|
|
Number of
accounts
|
|
Personal noninterest
bearing demand deposits
|
$
1,397,167
|
|
11.98 %
|
|
291,177
|
|
Business noninterest
bearing demand deposits
|
1,423,396
|
|
12.21 %
|
|
45,911
|
|
Personal
interest-bearing demand deposits
|
1,535,254
|
|
13.16 %
|
|
59,784
|
|
Business
interest-bearing demand deposits
|
1,042,399
|
|
8.94 %
|
|
8,354
|
|
Personal money market
deposits
|
1,511,652
|
|
12.96 %
|
|
26,488
|
|
Business money market
deposits
|
642,601
|
|
5.51 %
|
|
2,980
|
|
Savings
deposits
|
2,120,215
|
|
18.18 %
|
|
216,105
|
|
Time
deposits
|
1,989,711
|
|
17.06 %
|
|
67,662
|
|
Total
deposits
|
$
11,662,395
|
|
100.00 %
|
|
718,461
|
|
Our average deposit
account balance as of June 30, 2023 was $16,000. The Company's
insured cash sweep deposit balance was $205.7 million as of
June 30, 2023.
|
|
The following table
provides additional details over the Company's deposit portfolio
over time:
|
|
|
12/31/2021
|
|
3/31/2022
|
|
6/30/2022
|
|
9/30/2022
|
|
12/31/2022
|
|
3/31/2023
|
|
6/30/2023
|
|
Personal noninterest
bearing demand deposits
|
$
1,419,806
|
|
1,413,732
|
|
1,388,690
|
|
1,413,781
|
|
1,412,227
|
|
1,428,232
|
|
1,397,167
|
|
Business noninterest
bearing demand deposits
|
1,679,720
|
|
1,715,117
|
|
1,669,559
|
|
1,680,339
|
|
1,581,016
|
|
1,467,860
|
|
1,423,396
|
|
Personal
interest-bearing demand deposits
|
1,768,910
|
|
1,787,295
|
|
1,785,761
|
|
1,742,173
|
|
1,718,806
|
|
1,627,546
|
|
1,535,254
|
|
Business
interest-bearing demand deposits
|
639,529
|
|
588,850
|
|
529,357
|
|
498,937
|
|
499,059
|
|
466,105
|
|
624,252
|
|
Municipal demand
deposits
|
532,003
|
|
515,477
|
|
543,573
|
|
571,620
|
|
468,566
|
|
447,852
|
|
418,147
|
|
Personal money market
deposits
|
1,972,603
|
|
1,999,564
|
|
1,994,907
|
|
1,949,379
|
|
1,832,583
|
|
1,626,614
|
|
1,511,652
|
|
Business money market
deposits
|
657,279
|
|
681,049
|
|
636,805
|
|
627,634
|
|
624,986
|
|
701,436
|
|
642,601
|
|
Savings
deposits
|
2,303,760
|
|
2,367,438
|
|
2,362,725
|
|
2,327,419
|
|
2,275,020
|
|
2,194,743
|
|
2,120,215
|
|
Time
deposits
|
1,327,555
|
|
1,251,878
|
|
1,155,878
|
|
1,067,110
|
|
1,052,285
|
|
1,576,791
|
|
1,989,711
|
|
Total
deposits
|
$
12,301,165
|
|
12,320,400
|
|
12,067,255
|
|
11,878,392
|
|
11,464,548
|
|
11,537,179
|
|
11,662,395
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Marketable
Securities (Unaudited)
(dollars in
thousands)
|
|
|
|
June 30,
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
|
|
—
|
|
(1,676)
|
|
18,324
|
|
3.37
|
|
Due after ten
years
|
|
51,124
|
|
—
|
|
(10,627)
|
|
40,497
|
|
6.23
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
issued by government sponsored enterprises:
|
|
|
|
|
|
|
|
|
|
|
|
Due after
one year through five years
|
|
20,984
|
|
—
|
|
(2,940)
|
|
18,044
|
|
4.48
|
|
Due after
five years through ten years
|
|
25,516
|
|
—
|
|
(4,027)
|
|
21,489
|
|
5.02
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
securities:
|
|
|
|
|
|
|
|
|
|
|
|
Due
within one year
|
|
500
|
|
—
|
|
—
|
|
500
|
|
—
|
|
Due after one year
through five years
|
|
950
|
|
17
|
|
(9)
|
|
958
|
|
2.41
|
|
Due after
five years through ten years
|
|
20,481
|
|
—
|
|
(1,845)
|
|
18,636
|
|
7.2
|
|
Due after
ten years
|
|
64,589
|
|
59
|
|
(10,409)
|
|
54,239
|
|
10.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
debt issues:
|
|
|
|
|
|
|
|
|
|
|
|
Due after
five years through ten years
|
|
8,463
|
|
—
|
|
(917)
|
|
7,546
|
|
5.70
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed agency securities:
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
rate pass-through
|
|
219,643
|
|
4
|
|
(28,705)
|
|
190,942
|
|
6.4
|
|
Variable
rate pass-through
|
|
7,861
|
|
2
|
|
(215)
|
|
7,648
|
|
4.36
|
|
Fixed
rate agency CMOs
|
|
821,371
|
|
—
|
|
(151,317)
|
|
670,054
|
|
5.01
|
|
Variable
rate agency CMOs
|
|
25,619
|
|
35
|
|
(579)
|
|
25,075
|
|
3.09
|
|
Total
residential mortgage-backed agency securities
|
|
1,074,494
|
|
41
|
|
(180,816)
|
|
893,719
|
|
5.24
|
|
Total
marketable securities available-for-sale
|
|
$
1,287,101
|
|
117
|
|
(213,266)
|
|
1,073,952
|
|
5.53
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities
held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
Government
sponsored
|
|
|
|
|
|
|
|
|
|
|
|
Due after one year
through five years
|
|
$
49,471
|
|
—
|
|
(6,541)
|
|
42,930
|
|
3.99
|
|
Due after five years
through ten years
|
|
74,985
|
|
—
|
|
(13,586)
|
|
61,399
|
|
5.67
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed agency securities:
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
rate pass-through
|
|
$
155,431
|
|
—
|
|
(23,770)
|
|
131,661
|
|
5.27
|
|
Variable
rate pass-through
|
|
495
|
|
—
|
|
(10)
|
|
485
|
|
3.95
|
|
Fixed
rate agency CMOs
|
|
566,934
|
|
—
|
|
(85,253)
|
|
481,681
|
|
5.90
|
|
Variable
rate agency CMOs
|
|
529
|
|
—
|
|
(9)
|
|
520
|
|
5.61
|
|
Total
residential mortgage-backed agency securities
|
|
723,389
|
|
—
|
|
(109,042)
|
|
614,347
|
|
5.76
|
|
Total
marketable securities held-to-maturity
|
|
$
847,845
|
|
—
|
|
(129,169)
|
|
718,676
|
|
5.65
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Borrowed Funds
(Unaudited)
(dollars in
thousands)
|
|
|
June 30,
2023
|
|
Amount
|
|
Average
rate
|
|
Term notes payable to
the FHLB of Pittsburgh, due within one year
|
$
500,000
|
|
5.43 %
|
|
Notes payable to the
FHLB of Pittsburgh, due within one year
|
28,000
|
|
5.39 %
|
|
Total term notes
payable to the FHLB
|
528,000
|
|
5.43 %
|
|
|
|
|
|
Collateralized
borrowings, due within one year
|
63,863
|
|
1.24 %
|
|
Collateral received,
due within one year
|
40,450
|
|
5.16 %
|
|
Subordinated
debentures, net of issuance costs
|
114,015
|
|
4.28 %
|
|
Junior subordinated
debentures
|
129,444
|
|
7.21 %
|
|
Total borrowed funds
*
|
$
875,772
|
|
5.22 %
|
|
|
|
*
|
As of June 30, 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 $28.0 million drawn balance,
as well as $309.0 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 June 30, 2023:
|
|
|
June 30,
2023
|
|
Property
type
|
|
Percent of
portfolio
|
|
5 or more unit
dwelling
|
|
13.9 %
|
|
Nursing home
|
|
12.8 %
|
|
Retail
building
|
|
11.4 %
|
|
Commercial office
building - non-owner occupied
|
|
8.5 %
|
|
Residential acquisition
& development - 1-4 family, townhouses and
apartments
|
|
4.5 %
|
|
Warehouse/storage
building
|
|
3.6 %
|
|
Manufacturing &
industrial building
|
|
3.5 %
|
|
Commercial office
building - owner occupied
|
|
3.5 %
|
|
Commercial acquisition
and development
|
|
3.4 %
|
|
Multi-use building -
office and warehouse
|
|
3.2 %
|
|
Single family
dwelling
|
|
3.2 %
|
|
Hotel/motel
|
|
2.9 %
|
|
Other medical
facility
|
|
2.9 %
|
|
Student
housing
|
|
2.6 %
|
|
Multi-use building -
commercial, retail and residential
|
|
2.6 %
|
|
2-4 family
|
|
2.4 %
|
|
Agricultural real
estate
|
|
2.1 %
|
|
All other
|
|
13.0 %
|
|
Total
|
|
100.0 %
|
|
|
The following table
provides our commercial real estate portfolio by state at
June 30, 2023:
|
|
|
|
June 30,
2023
|
|
State
|
|
Percent of
portfolio
|
|
Pennsylvania
|
|
32.0 %
|
|
New York
|
|
31.7 %
|
|
Ohio
|
|
20.0 %
|
|
Indiana
|
|
8.8 %
|
|
All other
|
|
7.5 %
|
|
Total
|
|
100.0 %
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Asset Quality
(Unaudited)
(dollars in
thousands)
|
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
Nonaccrual loans
current:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
1,559
|
|
1,423
|
|
1,496
|
|
2,186
|
|
1,970
|
|
Home equity
loans
|
1,089
|
|
1,084
|
|
1,418
|
|
1,158
|
|
1,337
|
|
Consumer
loans
|
1,009
|
|
911
|
|
836
|
|
833
|
|
976
|
|
Commercial real estate
loans
|
48,468
|
|
50,045
|
|
53,303
|
|
56,193
|
|
60,537
|
|
Commercial
loans
|
995
|
|
1,468
|
|
895
|
|
1,801
|
|
5,270
|
|
Total nonaccrual loans
current
|
$
53,120
|
|
54,931
|
|
57,948
|
|
62,171
|
|
70,090
|
|
Nonaccrual loans
delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
49
|
|
688
|
|
473
|
|
54
|
|
2
|
|
Home equity
loans
|
37
|
|
18
|
|
180
|
|
316
|
|
172
|
|
Consumer
loans
|
309
|
|
223
|
|
178
|
|
155
|
|
158
|
|
Commercial real estate
loans
|
1,697
|
|
1,900
|
|
1,220
|
|
55
|
|
911
|
|
Commercial
loans
|
855
|
|
341
|
|
145
|
|
237
|
|
358
|
|
Total nonaccrual loans
delinquent 30 days to 59 days
|
$
2,947
|
|
3,170
|
|
2,196
|
|
817
|
|
1,601
|
|
Nonaccrual loans
delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
185
|
|
919
|
|
31
|
|
32
|
|
199
|
|
Home equity
loans
|
363
|
|
338
|
|
290
|
|
432
|
|
566
|
|
Consumer
loans
|
360
|
|
340
|
|
341
|
|
382
|
|
226
|
|
Commercial real estate
loans
|
210
|
|
1,355
|
|
473
|
|
848
|
|
630
|
|
Commercial
loans
|
245
|
|
126
|
|
96
|
|
132
|
|
73
|
|
Total nonaccrual loans
delinquent 60 days to 89 days
|
$
1,363
|
|
3,078
|
|
1,231
|
|
1,826
|
|
1,694
|
|
Nonaccrual loans
delinquent 90 days or more:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
6,290
|
|
3,300
|
|
5,574
|
|
5,544
|
|
5,445
|
|
Home equity
loans
|
1,965
|
|
2,190
|
|
2,257
|
|
1,779
|
|
2,081
|
|
Consumer
loans
|
2,033
|
|
2,791
|
|
2,672
|
|
2,031
|
|
1,942
|
|
Commercial real estate
loans
|
8,575
|
|
8,010
|
|
7,867
|
|
8,821
|
|
14,949
|
|
Commercial
loans
|
2,296
|
|
1,139
|
|
1,491
|
|
638
|
|
583
|
|
Total nonaccrual loans
delinquent 90 days or more
|
$
21,159
|
|
17,430
|
|
19,861
|
|
18,813
|
|
25,000
|
|
Total nonaccrual
loans
|
$
78,589
|
|
78,609
|
|
81,236
|
|
83,627
|
|
98,385
|
|
Total nonaccrual
loans
|
$
78,589
|
|
78,609
|
|
81,236
|
|
83,627
|
|
98,385
|
|
Loans 90 days past due
and still accruing
|
532
|
|
652
|
|
744
|
|
357
|
|
379
|
|
Nonperforming
loans
|
79,121
|
|
79,261
|
|
81,980
|
|
83,984
|
|
98,764
|
|
Real estate owned,
net
|
371
|
|
524
|
|
413
|
|
450
|
|
1,205
|
|
Nonperforming
assets
|
$
79,492
|
|
79,785
|
|
82,393
|
|
84,434
|
|
99,969
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to
total loans
|
0.70 %
|
|
0.71 %
|
|
0.75 %
|
|
0.78 %
|
|
0.95 %
|
|
Nonperforming assets to
total assets
|
0.56 %
|
|
0.56 %
|
|
0.58 %
|
|
0.61 %
|
|
0.71 %
|
|
Allowance for credit
losses to total loans
|
1.10 %
|
|
1.09 %
|
|
1.08 %
|
|
1.02 %
|
|
0.94 %
|
|
Allowance for total
loans excluding PPP loan balances
|
1.10 %
|
|
1.09 %
|
|
1.08 %
|
|
1.02 %
|
|
0.95 %
|
|
Allowance for credit
losses to nonperforming loans
|
157.26 %
|
|
152.98 %
|
|
143.98 %
|
|
130.76 %
|
|
99.59 %
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Loans by Credit
Quality Indicators (Unaudited)
(dollars in
thousands)
|
|
|
At June 30,
2023
|
|
Pass
|
|
Special
mention
*
|
|
Substandard
**
|
|
Doubtful
|
|
Loss
|
|
Loans
receivable
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
3,483,098
|
|
—
|
|
12,059
|
|
—
|
|
—
|
|
3,495,157
|
|
Home equity
loans
|
|
1,272,363
|
|
—
|
|
3,699
|
|
—
|
|
—
|
|
1,276,062
|
|
Consumer
loans
|
|
2,196,938
|
|
—
|
|
4,124
|
|
—
|
|
—
|
|
2,201,062
|
|
Total Personal
Banking
|
|
6,952,399
|
|
—
|
|
19,882
|
|
—
|
|
—
|
|
6,972,281
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,649,535
|
|
74,170
|
|
171,519
|
|
—
|
|
—
|
|
2,895,224
|
|
Commercial
loans
|
|
1,377,981
|
|
3,040
|
|
22,705
|
|
—
|
|
—
|
|
1,403,726
|
|
Total Commercial
Banking
|
|
4,027,516
|
|
77,210
|
|
194,224
|
|
—
|
|
—
|
|
4,298,950
|
|
Total loans
|
|
$ 10,979,915
|
|
77,210
|
|
214,106
|
|
—
|
|
—
|
|
11,271,231
|
|
At March 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
*
|
Includes $4.9 million,
$7.4 million, $7.4 million, $4.5 million, and $7.4 million of
acquired loans at June 30, 2023, March 31, 2023, December 31, 2022,
September 30, 2022, and June 30, 2022, respectively.
|
|
**
|
Includes $31.2 million,
$31.9 million, $39.1 million, $51.4 million, and $59.3 million of
acquired loans at June 30, 2023, March 31, 2023, December 31, 2022,
September 30, 2022, and June 30, 2022, respectively.
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Loan Delinquency
(Unaudited)
(dollars in
thousands)
|
|
|
June 30,
2023
|
|
*
|
|
March 31,
2023
|
|
*
|
|
December 31,
2022
|
|
*
|
|
September
30,
2022
|
|
*
|
|
June 30,
2022
|
|
*
|
|
(Number of loans and
dollar amount of loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 30
days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
14
|
|
$ 627
|
|
— %
|
|
259
|
|
$
26,992
|
|
0.8 %
|
|
304
|
|
$
29,487
|
|
0.8 %
|
|
26
|
|
$
1,052
|
|
— %
|
|
20
|
|
$ 785
|
|
— %
|
|
Home equity
loans
|
92
|
|
3,395
|
|
0.3 %
|
|
111
|
|
4,235
|
|
0.3 %
|
|
145
|
|
6,657
|
|
0.5 %
|
|
88
|
|
3,278
|
|
0.3 %
|
|
107
|
|
3,664
|
|
0.3 %
|
|
Consumer
loans
|
602
|
|
7,955
|
|
0.4 %
|
|
587
|
|
6,930
|
|
0.3 %
|
|
737
|
|
9,435
|
|
0.4 %
|
|
549
|
|
6,546
|
|
0.3 %
|
|
563
|
|
6,898
|
|
0.3 %
|
|
Commercial real estate
loans
|
13
|
|
2,710
|
|
0.1 %
|
|
23
|
|
4,834
|
|
0.2 %
|
|
29
|
|
4,008
|
|
0.1 %
|
|
13
|
|
1,332
|
|
— %
|
|
26
|
|
2,701
|
|
0.1 %
|
|
Commercial
loans
|
38
|
|
15,658
|
|
1.1 %
|
|
46
|
|
4,253
|
|
0.3 %
|
|
51
|
|
2,648
|
|
0.2 %
|
|
48
|
|
2,582
|
|
0.2 %
|
|
24
|
|
1,486
|
|
0.2 %
|
|
Total loans delinquent
30 days to 59 days
|
759
|
|
$
30,345
|
|
0.3 %
|
|
1,026
|
|
$
47,244
|
|
0.4 %
|
|
1,266
|
|
$
52,235
|
|
0.5 %
|
|
724
|
|
$
14,790
|
|
0.1 %
|
|
740
|
|
$
15,534
|
|
0.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60
days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
52
|
|
$
3,521
|
|
0.1 %
|
|
23
|
|
$
1,922
|
|
0.1 %
|
|
65
|
|
$
5,563
|
|
0.2 %
|
|
51
|
|
$
4,320
|
|
0.1 %
|
|
61
|
|
$
5,941
|
|
0.2 %
|
|
Home equity
loans
|
31
|
|
1,614
|
|
0.1 %
|
|
31
|
|
1,061
|
|
0.1 %
|
|
29
|
|
975
|
|
0.1 %
|
|
36
|
|
1,227
|
|
0.1 %
|
|
28
|
|
952
|
|
0.1 %
|
|
Consumer
loans
|
250
|
|
2,584
|
|
0.1 %
|
|
185
|
|
2,083
|
|
0.1 %
|
|
255
|
|
3,070
|
|
0.1 %
|
|
223
|
|
2,663
|
|
0.1 %
|
|
178
|
|
1,460
|
|
0.1 %
|
|
Commercial real estate
loans
|
12
|
|
1,288
|
|
— %
|
|
17
|
|
1,949
|
|
0.1 %
|
|
16
|
|
2,377
|
|
0.1 %
|
|
13
|
|
1,741
|
|
0.1 %
|
|
9
|
|
1,472
|
|
0.1 %
|
|
Commercial
loans
|
23
|
|
11,092
|
|
0.8 %
|
|
19
|
|
1,088
|
|
0.1 %
|
|
24
|
|
1,115
|
|
0.1 %
|
|
14
|
|
808
|
|
0.1 %
|
|
6
|
|
341
|
|
— %
|
|
Total loans delinquent
60 days to 89 days
|
368
|
|
$
20,099
|
|
0.2 %
|
|
275
|
|
$
8,103
|
|
0.1 %
|
|
389
|
|
$
13,100
|
|
0.1 %
|
|
337
|
|
$
10,759
|
|
0.1 %
|
|
282
|
|
$
10,166
|
|
0.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90
days or more: **
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
63
|
|
$
6,290
|
|
0.2 %
|
|
39
|
|
$
3,300
|
|
0.1 %
|
|
65
|
|
$
5,574
|
|
0.2 %
|
|
64
|
|
$
5,544
|
|
0.2 %
|
|
63
|
|
$
5,445
|
|
0.2 %
|
|
Home equity
loans
|
68
|
|
1,965
|
|
0.2 %
|
|
65
|
|
2,190
|
|
0.2 %
|
|
68
|
|
2,257
|
|
0.2 %
|
|
65
|
|
1,779
|
|
0.1 %
|
|
69
|
|
2,081
|
|
0.2 %
|
|
Consumer
loans
|
314
|
|
2,447
|
|
0.1 %
|
|
313
|
|
3,279
|
|
0.1 %
|
|
334
|
|
3,079
|
|
0.1 %
|
|
289
|
|
2,388
|
|
0.1 %
|
|
286
|
|
2,321
|
|
0.1 %
|
|
Commercial real estate
loans
|
20
|
|
8,575
|
|
0.3 %
|
|
18
|
|
8,010
|
|
0.3 %
|
|
19
|
|
7,867
|
|
0.3 %
|
|
22
|
|
8,821
|
|
0.3 %
|
|
31
|
|
14,949
|
|
0.5 %
|
|
Commercial
loans
|
38
|
|
2,414
|
|
0.2 %
|
|
24
|
|
1,302
|
|
0.1 %
|
|
15
|
|
1,829
|
|
0.2 %
|
|
11
|
|
638
|
|
0.1 %
|
|
10
|
|
583
|
|
0.1 %
|
|
Total loans delinquent
90 days or more
|
503
|
|
$
21,691
|
|
0.2 %
|
|
459
|
|
$
18,081
|
|
0.2 %
|
|
501
|
|
$
20,606
|
|
0.2 %
|
|
451
|
|
$
19,170
|
|
0.2 %
|
|
459
|
|
$
25,379
|
|
0.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
delinquent
|
1,630
|
|
$
72,135
|
|
0.6 %
|
|
1,760
|
|
$
73,428
|
|
0.7 %
|
|
2,156
|
|
$
85,941
|
|
0.8 %
|
|
1,512
|
|
$
44,719
|
|
0.4 %
|
|
1,481
|
|
$
51,079
|
|
0.5 %
|
|
|
|
*
|
Represents delinquency,
in dollars, divided by the respective total amount of that type of
loan outstanding.
|
|
**
|
Includes purchased
credit deteriorated loans of $605,000, $331,000, $1.7 million,
$783,000, and $6.3 million at June 30, 2023, March 31, 2023,
December 31, 2022, September 30, 2022, and June 30, 2022,
respectively.
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Allowance for Credit
Losses (Unaudited)
(dollars in
thousands)
|
|
|
Quarter ended
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
Beginning
balance
|
$ 121,257
|
|
118,036
|
|
109,819
|
|
98,355
|
|
99,295
|
|
ASU 2022-02
Adoption
|
—
|
|
426
|
|
—
|
|
—
|
|
—
|
|
Provision
|
6,010
|
|
4,870
|
|
9,023
|
|
7,689
|
|
2,629
|
|
Charge-offs residential
mortgage
|
(545)
|
|
(207)
|
|
(546)
|
|
(166)
|
|
(138)
|
|
Charge-offs home
equity
|
(235)
|
|
(164)
|
|
(232)
|
|
(535)
|
|
(255)
|
|
Charge-offs
consumer
|
(2,772)
|
|
(2,734)
|
|
(2,430)
|
|
(2,341)
|
|
(1,912)
|
|
Charge-offs commercial
real estate
|
(483)
|
|
(657)
|
|
(621)
|
|
(1,329)
|
|
(4,392)
|
|
Charge-offs
commercial
|
(1,209)
|
|
(865)
|
|
(404)
|
|
(243)
|
|
(329)
|
|
Recoveries
|
2,400
|
|
2,552
|
|
3,427
|
|
8,389
|
|
3,457
|
|
Ending
balance
|
$ 124,423
|
|
121,257
|
|
118,036
|
|
109,819
|
|
98,355
|
|
Net charge-offs to
average loans, annualized
|
0.10 %
|
|
0.08 %
|
|
0.03 %
|
|
(0.14) %
|
|
0.14 %
|
|
Six months ended
June 30,
|
|
2023
|
|
2022
|
|
Beginning
balance
|
$
118,036
|
|
102,241
|
|
ASU 2022-02
Adoption
|
426
|
|
—
|
|
Provision
|
10,880
|
|
1,148
|
|
Charge-offs residential
mortgage
|
(752)
|
|
(1,321)
|
|
Charge-offs home
equity
|
(399)
|
|
(702)
|
|
Charge-offs
consumer
|
(5,506)
|
|
(3,635)
|
|
Charge-offs commercial
real estate
|
(1,140)
|
|
(5,416)
|
|
Charge-offs
commercial
|
(2,074)
|
|
(1,010)
|
|
Recoveries
|
4,952
|
|
7,050
|
|
Ending
balance
|
$
124,423
|
|
98,355
|
|
Net charge-offs to
average loans, annualized
|
0.09 %
|
|
0.10 %
|
|
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
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
June 30,
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
|
$
3,485,517
|
|
32,485
|
|
3.73 %
|
|
$
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 %
|
|
Home equity
loans
|
1,273,298
|
|
16,898
|
|
5.32 %
|
|
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 %
|
|
Consumer
loans
|
2,143,804
|
|
22,662
|
|
4.24 %
|
|
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 %
|
|
Commercial real estate
loans
|
2,836,443
|
|
38,426
|
|
5.43 %
|
|
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 %
|
|
Commercial
loans
|
1,326,598
|
|
22,872
|
|
6.92 %
|
|
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 %
|
|
Total loans receivable
(a) (b) (d)
|
11,065,660
|
|
133,343
|
|
4.83 %
|
|
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 %
|
|
Mortgage-backed
securities (c)
|
1,859,427
|
|
8,326
|
|
1.79 %
|
|
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 %
|
|
Investment securities
(c) (d)
|
374,560
|
|
1,715
|
|
1.83 %
|
|
384,717
|
|
1,761
|
|
1.83 %
|
|
386,468
|
|
1,753
|
|
1.81 %
|
|
388,755
|
|
1,762
|
|
1.81 %
|
|
376,935
|
|
1,590
|
|
1.69 %
|
|
FHLB stock, at
cost
|
45,505
|
|
844
|
|
7.44 %
|
|
39,631
|
|
690
|
|
7.06 %
|
|
26,827
|
|
419
|
|
6.19 %
|
|
14,028
|
|
148
|
|
4.19 %
|
|
13,428
|
|
82
|
|
2.44 %
|
|
Other interest-earning
deposits
|
38,912
|
|
594
|
|
6.12 %
|
|
30,774
|
|
423
|
|
5.50 %
|
|
9,990
|
|
153
|
|
5.99 %
|
|
253,192
|
|
1,295
|
|
2.00 %
|
|
846,142
|
|
1,684
|
|
0.79 %
|
|
Total interest-earning
assets
|
13,384,064
|
|
144,822
|
|
4.34 %
|
|
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 %
|
|
Noninterest-earning
assets (e)
|
861,853
|
|
|
|
|
|
869,566
|
|
|
|
|
|
877,121
|
|
|
|
|
|
896,663
|
|
|
|
|
|
909,943
|
|
|
|
|
|
Total assets
|
$
14,245,917
|
|
|
|
|
|
$
14,121,496
|
|
|
|
|
|
$
13,983,100
|
|
|
|
|
|
$
14,052,919
|
|
|
|
|
|
$
14,256,705
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits
(g)
|
$
2,142,941
|
|
1,393
|
|
0.26 %
|
|
$
2,198,988
|
|
690
|
|
0.13 %
|
|
$
2,298,451
|
|
585
|
|
0.10 %
|
|
$
2,350,248
|
|
594
|
|
0.10 %
|
|
$
2,361,919
|
|
589
|
|
0.10 %
|
|
Interest-bearing
demand deposits (g)
|
2,469,666
|
|
1,648
|
|
0.27 %
|
|
2,612,883
|
|
951
|
|
0.15 %
|
|
2,718,360
|
|
509
|
|
0.07 %
|
|
2,794,338
|
|
360
|
|
0.05 %
|
|
2,857,336
|
|
310
|
|
0.04 %
|
|
Money market deposit
accounts (g)
|
2,221,713
|
|
6,113
|
|
1.10 %
|
|
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 %
|
|
Time deposits
(g)
|
1,765,454
|
|
12,663
|
|
2.88 %
|
|
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 %
|
|
Borrowed funds
(f)
|
837,358
|
|
10,202
|
|
4.89 %
|
|
740,218
|
|
7,938
|
|
4.35 %
|
|
451,369
|
|
3,967
|
|
3.49 %
|
|
127,073
|
|
239
|
|
0.75 %
|
|
123,749
|
|
167
|
|
0.54 %
|
|
Subordinated
debt
|
113,958
|
|
1,148
|
|
4.03 %
|
|
113,870
|
|
1,148
|
|
4.03 %
|
|
113,783
|
|
1,148
|
|
4.04 %
|
|
113,695
|
|
1,149
|
|
4.04 %
|
|
119,563
|
|
1,203
|
|
4.03 %
|
|
Junior subordinated
debentures
|
129,401
|
|
2,280
|
|
6.97 %
|
|
129,335
|
|
2,152
|
|
6.66 %
|
|
129,271
|
|
1,823
|
|
5.52 %
|
|
129,207
|
|
1,322
|
|
4.00 %
|
|
129,142
|
|
920
|
|
2.82 %
|
|
Total interest-bearing
liabilities
|
9,680,491
|
|
35,447
|
|
1.47 %
|
|
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 %
|
|
Noninterest-bearing
demand deposits (g)
|
2,820,928
|
|
|
|
|
|
2,889,973
|
|
|
|
|
|
3,039,000
|
|
|
|
|
|
3,093,490
|
|
|
|
|
|
3,090,372
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
224,508
|
|
|
|
|
|
235,213
|
|
|
|
|
|
229,794
|
|
|
|
|
|
209,486
|
|
|
|
|
|
193,510
|
|
|
|
|
|
Total
liabilities
|
12,725,927
|
|
|
|
|
|
12,622,671
|
|
|
|
|
|
12,517,815
|
|
|
|
|
|
12,549,293
|
|
|
|
|
|
12,749,873
|
|
|
|
|
|
Shareholders'
equity
|
1,519,990
|
|
|
|
|
|
1,498,825
|
|
|
|
|
|
1,465,285
|
|
|
|
|
|
1,503,626
|
|
|
|
|
|
1,506,832
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
14,245,917
|
|
|
|
|
|
$
14,121,496
|
|
|
|
|
|
$
13,983,100
|
|
|
|
|
|
$
14,052,919
|
|
|
|
|
|
$
14,256,705
|
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
109,375
|
|
2.87 %
|
|
|
|
113,256
|
|
3.19 %
|
|
|
|
117,809
|
|
3.43 %
|
|
|
|
113,485
|
|
3.35 %
|
|
|
|
100,882
|
|
2.96 %
|
|
Net interest-earning
assets/Net interest margin
|
$
3,703,573
|
|
|
|
3.28 %
|
|
$
3,754,445
|
|
|
|
3.47 %
|
|
$
3,856,958
|
|
|
|
3.57 %
|
|
$
3,909,939
|
|
|
|
3.42 %
|
|
$
3,880,771
|
|
|
|
3.07 %
|
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.38X
|
|
|
|
|
|
1.40X
|
|
|
|
|
|
1.42X
|
|
|
|
|
|
1.42X
|
|
|
|
|
|
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 0.77%, 0.40%, 0.13%, 0.11%, and 0.11%, respectively
and average cost of Interest-bearing deposits were 1.02%, 0.54%,
0.18%, 0.14%, and 0.15%, respectively.
|
|
(h)
|
Shown on a FTE basis.
GAAP basis yields for the periods indicated were: Loans — 4.81%,
4.61%, 4.33%, 4.05%, and 3.77%, respectively, Investment securities
— 1.61%, 1.61%, 1.59%, 1.59%, and 1.48%, respectively,
Interest-earning assets — 4.32%, 4.13%, 3.87%, 3.58%, and 3.18%,
respectively. GAAP basis net interest rate spreads were 2.85%,
3.17%, 3.41%, 3.33%, and 2.94%, respectively, and GAAP basis net
interest margins were 3.25%, 3.44%, 3.54%, 3.40%, and 3.05%,
respectively.
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
|
Average Balance
Sheet (Unaudited)
|
|
(in
thousands)
|
|
|
The following table
sets forth certain information relating to the Company's average
balance sheet and reflects the average yield on interest-earning
assets and average cost of interest-bearing 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.
|
|
|
Six months ended
June 30,
|
|
2023
|
|
2022
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$ 3,489,545
|
|
64,494
|
|
3.70 %
|
|
$ 3,077,155
|
|
52,868
|
|
3.44 %
|
|
Home equity
loans
|
1,278,831
|
|
33,033
|
|
5.21 %
|
|
1,285,668
|
|
23,433
|
|
3.68 %
|
|
Consumer
loans
|
2,133,794
|
|
43,457
|
|
4.11 %
|
|
1,840,110
|
|
30,684
|
|
3.36 %
|
|
Commercial real estate
loans
|
2,830,316
|
|
75,463
|
|
5.38 %
|
|
2,957,744
|
|
61,601
|
|
4.14 %
|
|
Commercial
loans
|
1,244,404
|
|
41,225
|
|
6.68 %
|
|
868,854
|
|
15,987
|
|
3.66 %
|
|
Loans receivable
(a) (b) (d)
|
10,976,890
|
|
257,672
|
|
4.73 %
|
|
10,029,531
|
|
184,573
|
|
3.71 %
|
|
Mortgage-backed
securities (c)
|
1,884,412
|
|
16,863
|
|
1.79 %
|
|
1,948,794
|
|
13,518
|
|
1.39 %
|
|
Investment securities
(c) (d)
|
379,611
|
|
3,478
|
|
1.83 %
|
|
375,323
|
|
3,130
|
|
1.67 %
|
|
FHLB stock, at
cost
|
42,584
|
|
1,534
|
|
7.26 %
|
|
13,648
|
|
163
|
|
2.41 %
|
|
Other interest-earning
deposits
|
34,842
|
|
1,017
|
|
5.88 %
|
|
1,003,627
|
|
2,151
|
|
0.43 %
|
|
Total interest-earning
assets
|
13,318,339
|
|
280,564
|
|
4.25 %
|
|
13,370,923
|
|
203,535
|
|
3.07 %
|
|
Noninterest-earning
assets (e)
|
865,711
|
|
|
|
|
|
969,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
14,184,050
|
|
|
|
|
|
$
14,340,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits
(g)
|
$ 2,187,355
|
|
2,082
|
|
0.19 %
|
|
$ 2,348,282
|
|
1,181
|
|
0.10 %
|
|
Interest-bearing
demand deposits (g)
|
2,540,879
|
|
2,599
|
|
0.21 %
|
|
2,866,333
|
|
631
|
|
0.04 %
|
|
Money market deposit
accounts (g)
|
2,314,631
|
|
10,516
|
|
0.92 %
|
|
2,660,745
|
|
1,321
|
|
0.10 %
|
|
Time deposits
(g)
|
1,514,289
|
|
17,858
|
|
2.38 %
|
|
1,256,513
|
|
3,959
|
|
0.64 %
|
|
Borrowed funds
(f)
|
789,057
|
|
18,139
|
|
4.64 %
|
|
129,487
|
|
324
|
|
0.50 %
|
|
Subordinated
debt
|
113,914
|
|
2,296
|
|
4.03 %
|
|
121,574
|
|
2,454
|
|
4.04 %
|
|
Junior subordinated
debentures
|
129,368
|
|
4,433
|
|
6.82 %
|
|
129,109
|
|
1,571
|
|
2.42 %
|
|
Total interest-bearing
liabilities
|
9,589,493
|
|
57,923
|
|
1.22 %
|
|
9,512,043
|
|
11,441
|
|
0.24 %
|
|
Noninterest-bearing
demand deposits (g)
|
2,855,260
|
|
|
|
|
|
3,075,617
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
229,831
|
|
|
|
|
|
198,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
12,674,584
|
|
|
|
|
|
12,786,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
1,509,466
|
|
|
|
|
|
1,553,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
14,184,050
|
|
|
|
|
|
$
14,340,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
222,641
|
|
3.03 %
|
|
|
|
192,094
|
|
2.83 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets/Net interest margin
|
$ 3,728,846
|
|
|
|
3.37 %
|
|
$ 3,858,880
|
|
|
|
2.87 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.39X
|
|
|
|
|
|
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 were 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 0.58% and 0.12%, respectively and average cost of
Interest-bearing deposits were 0.78% and 0.16%,
respectively.
|
|
(h)
|
Shown on a FTE basis.
GAAP basis yields were: Loans — 4.71% and 3.69%, respectively;
Investment securities — 1.61% and 1.46%, respectively;
Interest-earning assets — 4.22% and 3.05%, respectively. GAAP basis
net interest rate spreads were 3.01% and 2.81%, respectively; and
GAAP basis net interest margins were 3.35% and 2.86%,
respectively.
|
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SOURCE Northwest Bancshares, Inc.