COLUMBUS, Ohio, Oct. 23,
2023 /PRNewswire/ -- Northwest Bancshares, Inc., (the
"Company"), (NasdaqGS: NWBI) announced net income for the quarter
ended September 30, 2023 of
$39.2 million, or $0.31 per diluted share. This represents an
increase of $1.9 million, or 5.1%,
compared to the same quarter last year, when net income was
$37.3 million, or $0.29 per diluted share. The annualized returns
on average shareholders' equity and average assets for the quarter
ended September 30, 2023 were 10.27%
and 1.08% compared to 9.84% and 1.05% 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 November 14,
2023 to shareholders of record as of November 2, 2023. This is the 116th consecutive
quarter in which the Company has paid a cash dividend. Based on the
market value of the Company's common stock as of September 30, 2023, this represents an annualized
dividend yield of approximately 7.8%.
Louis J. Torchio, President and CEO, added, "Despite the
economic, liquidity and interest rate headwinds, we are very
pleased with current quarter results including strong net income of
$39.2 million, or $0.31 per share. While net interest margins are
still a challenge for the industry, we are encouraged by our
decline of just five basis points during the quarter.
Expenses were higher as we continue to hire the talent and
build out the infrastructure necessary to propel the organization
to a higher level of performance. Finally, asset quality remains
positively resilient and overall stable."
Mr. Torchio continued, "We continue to execute upon our
strategic direction of transforming our organization into a more
innovative and proactive commercial institution. Our
year-to-date commercial loan growth of $480.0 million, or 12.1%, has pushed our overall
commercial loan mix from 36% of total loans at the beginning of the
year to over 39% at September 30.
In addition, noninterest income represented over 22% of total
revenue in the current quarter compared to just 19% during the same
quarter last year. From a funding perspective, our deposit
base remains strong and stable, and we have the advantage of being
able to redirect cashflows from investment securities, mortgage
loans and consumer loans to continue to grow more profitable
commercial relationships."
Net interest income decreased by $4.4
million, or 3.9%, to $108.4
million for the quarter ended September 30, 2023, from $112.7 million for the quarter ended September 30, 2022. This decrease in net interest
income resulted primarily from a $37.4
million increase in interest expense as result of increases
in both the average balance and average cost of interest-bearing
liabilities. The average balance of interest-bearing liabilities
increased $603.5 million, or 6.5%, to
$9.850 billion for the quarter ended
September 30, 2023 from $9.246 billion for the quarter ended September 30, 2022, driven by an increase in time
deposits and borrowed funds. In addition, the cost of
interest-bearing liabilities increased to 1.74% for the quarter
ended September 30, 2023 from 0.25%
for the quarter ended September 30,
2022 due to higher market interest rates. Partially
offsetting this increase in interest expense was a $33.0 million increase in interest income. 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 4.51% for the
quarter ended September 30, 2023 from
3.60% for the quarter ended September 30,
2022. Interest income on loans receivable increased
$33.7 million, or 31.5%, due to an
increase of $710.4 million, or 6.8%,
in the average balance of loans in addition to an increase in the
yield on loans to 5.01% for the quarter ended September 30, 2023 from 4.07% for the quarter
ended September 30, 2022. The net
effect of these changes in interest rates and average balances was
a decrease in the Company's net interest margin to 3.23% for the
quarter ended September 30, 2023 from
3.42% for the same quarter last year.
The provision for credit losses decreased by $10.3 million, or 91.1%, to $1.0 million for the current quarter ended
September 30, 2023 from $11.3 million for the quarter ended September 30, 2022. Economic forecasts continued
to improve and the Company continued to experience decreases in
classified loans by $29.1 million, or
12.2%, to $208.6 million, or 1.84% of
total loans, at September 30, 2023
from $237.7 million, or 2.21% of
total loans, at September 30,
2022.
Noninterest income increased by $4.1
million, or 15.2%, to $30.9
million for the quarter ended September 30, 2023, from $26.8 million for the quarter ended September 30, 2022. This increase was primarily
due to an increase in bank owned life insurance income of
$3.1 million, or 209.2%, to
$4.6 million for the quarter ended
September 30, 2023 from $1.5 million for the quarter ended September 30, 2022 as a result of death benefits
received in the current period.
Noninterest expense increased by $8.6
million, or 10.9%, to $87.6
million for the quarter ended September 30, 2023 from $79.0 million for the quarter ended September 30, 2022. This increase primarily
resulted from a $4.5 million, or
9.7%, increase in compensation and employee benefits to
$51.2 million for the quarter ended
September 30, 2023, from $46.7 million for the quarter ended September 30, 2022 driven by increases in
salaries and benefits over the past twelve months. Other expenses
increased $1.7 million to
$2.0 million for the quarter ended
September 30, 2023, from $321,000 for the quarter ended September 30, 2022 due to an increase in employee
relocation and other expenses. Processing expenses increased
$1.3 million, or 9.4%, to
$14.7 million for the quarter ended
September 30, 2023, from $13.4 million for the quarter ended September 30, 2022 due to the implementation of
additional third-party software programs. Lastly, FDIC insurance
premiums increased $1.1 million, or
95.1%, to $2.3 million for the
quarter ended September 30, 2023 from
$1.2 million for the quarter ended
September 30, 2022 due to an increase
in the deposit insurance assessment rate beginning in the first
quarter of 2023.
The provision for income taxes decreased by $522,000, or 4.4%, to $11.5 million for the quarter ended September 30, 2023 from $12.0 million for the quarter ended September 30, 2022 due primarily to a decrease in
our effective tax rate in the current year related to BOLI tax
benefits.
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 September 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; (9) reduction in the value of our goodwill and other
intangible assets; and (10) 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)
|
|
|
September
30,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
161,995
|
|
139,365
|
|
118,549
|
|
Marketable securities
available-for-sale (amortized cost of $1,262,080, $1,431,728 and
$1,466,883,
respectively)
|
1,010,076
|
|
1,218,108
|
|
1,251,791
|
|
Marketable securities
held-to-maturity (fair value of $682,681, $751,384 and $771,238,
respectively)
|
830,106
|
|
881,249
|
|
899,411
|
|
Total cash and cash
equivalents and marketable securities
|
2,002,177
|
|
2,238,722
|
|
2,269,751
|
|
|
|
|
|
|
|
Loans
held-for-sale
|
10,592
|
|
9,913
|
|
15,834
|
|
Residential mortgage
loans
|
3,462,606
|
|
3,488,686
|
|
3,386,064
|
|
Home equity
loans
|
1,258,765
|
|
1,297,674
|
|
1,284,989
|
|
Consumer
loans
|
2,155,119
|
|
2,168,655
|
|
2,116,238
|
|
Commercial real estate
loans
|
2,922,582
|
|
2,823,555
|
|
2,812,830
|
|
Commercial
loans
|
1,500,609
|
|
1,131,969
|
|
1,125,570
|
|
Total loans
receivable
|
11,310,273
|
|
10,920,452
|
|
10,741,525
|
|
Allowance for credit
losses
|
(124,841)
|
|
(118,036)
|
|
(109,819)
|
|
Loans receivable,
net
|
11,185,432
|
|
10,802,416
|
|
10,631,706
|
|
|
|
|
|
|
|
FHLB stock, at
cost
|
40,404
|
|
40,143
|
|
19,281
|
|
Accrued interest
receivable
|
42,624
|
|
35,528
|
|
29,536
|
|
Real estate owned,
net
|
363
|
|
413
|
|
450
|
|
Premises and equipment,
net
|
138,041
|
|
145,909
|
|
146,173
|
|
Bank-owned life
insurance
|
250,502
|
|
255,062
|
|
255,015
|
|
Goodwill
|
380,997
|
|
380,997
|
|
380,997
|
|
Other intangible
assets, net
|
6,013
|
|
8,560
|
|
9,491
|
|
Other assets
|
315,648
|
|
205,574
|
|
210,744
|
|
Total
assets
|
$
14,362,201
|
|
14,113,324
|
|
13,953,144
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$ 2,774,291
|
|
2,993,243
|
|
3,094,120
|
|
Interest-bearing demand
deposits
|
2,598,080
|
|
2,686,431
|
|
2,812,730
|
|
Money market deposit
accounts
|
2,042,813
|
|
2,457,569
|
|
2,577,013
|
|
Savings
deposits
|
2,116,360
|
|
2,275,020
|
|
2,327,419
|
|
Time
deposits
|
2,258,338
|
|
1,052,285
|
|
1,067,110
|
|
Total
deposits
|
11,789,882
|
|
11,464,548
|
|
11,878,392
|
|
|
|
|
|
|
|
Borrowed
funds
|
604,587
|
|
681,166
|
|
150,036
|
|
Subordinated
debt
|
114,102
|
|
113,840
|
|
113,753
|
|
Junior subordinated
debentures
|
129,509
|
|
129,314
|
|
129,249
|
|
Advances by borrowers
for taxes and insurance
|
27,653
|
|
47,613
|
|
29,647
|
|
Accrued interest
payable
|
7,915
|
|
3,231
|
|
831
|
|
Other
liabilities
|
190,122
|
|
182,126
|
|
191,450
|
|
Total
liabilities
|
12,863,770
|
|
12,621,838
|
|
12,493,358
|
|
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, 127,101,349, 127,028,848
and
126,921,989 shares issued and outstanding, respectively
|
1,271
|
|
1,270
|
|
1,269
|
|
Additional paid-in
capital
|
1,023,591
|
|
1,019,647
|
|
1,017,189
|
|
Retained
earnings
|
671,092
|
|
641,727
|
|
632,476
|
|
Accumulated other
comprehensive loss
|
(197,523)
|
|
(171,158)
|
|
(191,148)
|
|
Total shareholders'
equity
|
1,498,431
|
|
1,491,486
|
|
1,459,786
|
|
Total liabilities and
shareholders' equity
|
$
14,362,201
|
|
14,113,324
|
|
13,953,144
|
|
|
|
|
|
|
|
Equity to
assets
|
10.43 %
|
|
10.57 %
|
|
10.46 %
|
|
Tangible common equity
to assets*
|
7.95 %
|
|
8.03 %
|
|
7.88 %
|
|
Book value per
share
|
$
11.79
|
|
11.74
|
|
11.50
|
|
Tangible book value
per share*
|
$
8.74
|
|
8.67
|
|
8.42
|
|
Closing market price
per share
|
$
10.23
|
|
13.98
|
|
13.51
|
|
Full time equivalent
employees
|
2,084
|
|
2,160
|
|
2,191
|
|
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
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
$ 140,667
|
|
132,724
|
|
123,745
|
|
117,137
|
|
106,943
|
|
Mortgage-backed
securities
|
8,072
|
|
8,326
|
|
8,537
|
|
8,603
|
|
8,683
|
|
Taxable investment
securities
|
786
|
|
841
|
|
845
|
|
840
|
|
838
|
|
Tax-free investment
securities
|
491
|
|
667
|
|
700
|
|
701
|
|
709
|
|
FHLB stock
dividends
|
668
|
|
844
|
|
690
|
|
419
|
|
148
|
|
Interest-earning
deposits
|
914
|
|
594
|
|
423
|
|
153
|
|
1,295
|
|
Total interest
income
|
151,598
|
|
143,996
|
|
134,940
|
|
127,853
|
|
118,616
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
31,688
|
|
21,817
|
|
11,238
|
|
3,871
|
|
3,157
|
|
Borrowed
funds
|
11,542
|
|
13,630
|
|
11,238
|
|
6,938
|
|
2,710
|
|
Total interest
expense
|
43,230
|
|
35,447
|
|
22,476
|
|
10,809
|
|
5,867
|
|
Net interest
income
|
108,368
|
|
108,549
|
|
112,464
|
|
117,044
|
|
112,749
|
|
Provision for credit
losses - loans
|
3,983
|
|
6,010
|
|
4,870
|
|
9,023
|
|
7,689
|
|
Provision for credit
losses - unfunded commitments (1)
|
(2,981)
|
|
2,920
|
|
126
|
|
1,876
|
|
3,585
|
|
Net interest income
after provision for credit losses
|
107,366
|
|
99,619
|
|
107,468
|
|
106,145
|
|
101,475
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
investments
|
—
|
|
(8,306)
|
|
—
|
|
(1)
|
|
(2)
|
|
Gain on sale of
mortgage servicing rights
|
—
|
|
8,305
|
|
—
|
|
—
|
|
—
|
|
Gain on sale of SBA
loans
|
301
|
|
832
|
|
279
|
|
—
|
|
—
|
|
Service charges and
fees
|
15,270
|
|
14,833
|
|
13,189
|
|
14,125
|
|
14,323
|
|
Trust and other
financial services income
|
7,085
|
|
6,866
|
|
6,449
|
|
6,642
|
|
6,650
|
|
Gain on real estate
owned, net
|
29
|
|
785
|
|
108
|
|
51
|
|
290
|
|
Income from bank-owned
life insurance
|
4,561
|
|
1,304
|
|
1,269
|
|
1,663
|
|
1,475
|
|
Mortgage banking
income
|
632
|
|
1,028
|
|
524
|
|
477
|
|
766
|
|
Other operating
income
|
3,010
|
|
4,150
|
|
2,151
|
|
4,901
|
|
3,301
|
|
Total noninterest
income
|
30,888
|
|
29,797
|
|
23,969
|
|
27,858
|
|
26,803
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
51,243
|
|
47,650
|
|
46,604
|
|
46,658
|
|
46,711
|
|
Premises and occupancy
costs
|
7,052
|
|
7,579
|
|
7,471
|
|
7,370
|
|
7,171
|
|
Office
operations
|
3,398
|
|
2,800
|
|
3,010
|
|
3,544
|
|
3,229
|
|
Collections
expense
|
551
|
|
429
|
|
387
|
|
563
|
|
322
|
|
Processing
expenses
|
14,672
|
|
14,648
|
|
14,350
|
|
13,585
|
|
13,416
|
|
Marketing
expenses
|
2,379
|
|
2,856
|
|
2,892
|
|
2,773
|
|
2,147
|
|
Federal deposit
insurance premiums
|
2,341
|
|
2,064
|
|
2,223
|
|
1,319
|
|
1,200
|
|
Professional
services
|
3,002
|
|
3,804
|
|
4,758
|
|
5,434
|
|
3,363
|
|
Amortization of
intangible assets
|
795
|
|
842
|
|
909
|
|
932
|
|
1,047
|
|
Real estate owned
expense
|
141
|
|
83
|
|
181
|
|
53
|
|
61
|
|
Merger, asset
disposition and restructuring expense
|
—
|
|
1,593
|
|
2,802
|
|
4,243
|
|
—
|
|
Other
expenses
|
1,996
|
|
1,510
|
|
1,863
|
|
2,304
|
|
321
|
|
Total noninterest
expense
|
87,570
|
|
85,858
|
|
87,450
|
|
88,778
|
|
78,988
|
|
Income before income
taxes
|
50,684
|
|
43,558
|
|
43,987
|
|
45,225
|
|
49,290
|
|
Income tax
expense
|
11,464
|
|
10,514
|
|
10,308
|
|
10,576
|
|
11,986
|
|
Net income
|
$
39,220
|
|
33,044
|
|
33,679
|
|
34,649
|
|
37,304
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
0.31
|
|
0.26
|
|
0.27
|
|
0.27
|
|
0.29
|
|
Diluted earnings per
share
|
$
0.31
|
|
0.26
|
|
0.26
|
|
0.27
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average equity
|
10.27 %
|
|
8.72 %
|
|
9.11 %
|
|
9.38 %
|
|
9.84 %
|
|
Annualized return on
average assets
|
1.08 %
|
|
0.93 %
|
|
0.97 %
|
|
0.98 %
|
|
1.05 %
|
|
Annualized return on
tangible common equity *
|
14.00 %
|
|
11.79 %
|
|
12.15 %
|
|
12.48 %
|
|
13.84 %
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
62.88 %
|
|
62.06 %
|
|
64.10 %
|
|
61.27 %
|
|
56.60 %
|
|
Efficiency ratio,
excluding certain items (1) **
|
62.31 %
|
|
60.30 %
|
|
61.38 %
|
|
57.70 %
|
|
55.85 %
|
|
Annualized noninterest
expense to average assets
|
2.42 %
|
|
2.42 %
|
|
2.51 %
|
|
2.52 %
|
|
2.23 %
|
|
Annualized noninterest
expense to average assets, excluding certain items (1)
**
|
2.39 %
|
|
2.35 %
|
|
2.40 %
|
|
2.37 %
|
|
2.20 %
|
|
|
|
(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)
|
|
|
Nine months ended
September 30,
|
|
2023
|
|
2022
|
|
Interest
income:
|
|
|
|
|
Loans
receivable
|
$
397,136
|
|
290,691
|
|
Mortgage-backed
securities
|
24,935
|
|
22,201
|
|
Taxable investment
securities
|
2,472
|
|
2,230
|
|
Tax-free investment
securities
|
1,858
|
|
2,066
|
|
FHLB stock
dividends
|
2,202
|
|
311
|
|
Interest-earning
deposits
|
1,931
|
|
3,446
|
|
Total interest
income
|
430,534
|
|
320,945
|
|
Interest
expense:
|
|
|
|
|
Deposits
|
64,743
|
|
10,249
|
|
Borrowed
funds
|
36,410
|
|
7,059
|
|
Total interest
expense
|
101,153
|
|
17,308
|
|
Net interest
income
|
329,381
|
|
303,637
|
|
Provision for credit
losses - loans
|
14,863
|
|
8,837
|
|
Provision for credit
losses - unfunded commitments (1)
|
65
|
|
8,577
|
|
Net interest income
after provision for credit losses
|
314,453
|
|
286,223
|
|
Noninterest
income:
|
|
|
|
|
Loss on sale of
investments
|
(8,306)
|
|
(7)
|
|
Gain on sale of
mortgage servicing rights
|
8,305
|
|
—
|
|
Gain on sale of SBA
loans
|
1,412
|
|
—
|
|
Service charges and
fees
|
43,292
|
|
41,063
|
|
Trust and other
financial services income
|
20,400
|
|
21,123
|
|
Gain on real estate
owned, net
|
922
|
|
552
|
|
Income from bank-owned
life insurance
|
7,134
|
|
5,466
|
|
Mortgage banking
income
|
2,184
|
|
4,388
|
|
Other operating
income
|
9,311
|
|
10,406
|
|
Total noninterest
income
|
84,654
|
|
82,991
|
|
Noninterest
expense:
|
|
|
|
|
Compensation and
employee benefits
|
145,497
|
|
141,701
|
|
Premises and occupancy
costs
|
22,102
|
|
22,248
|
|
Office
operations
|
9,208
|
|
9,774
|
|
Collections
expense
|
1,367
|
|
1,245
|
|
Processing
expenses
|
43,670
|
|
38,911
|
|
Marketing
expenses
|
8,127
|
|
6,322
|
|
Federal deposit
insurance premiums
|
6,628
|
|
3,459
|
|
Professional
services
|
11,564
|
|
9,269
|
|
Amortization of
intangible assets
|
2,546
|
|
3,345
|
|
Real estate owned
expense
|
405
|
|
170
|
|
Merger, asset
disposition and restructuring expense
|
4,395
|
|
1,374
|
|
Other
expenses
|
5,369
|
|
2,929
|
|
Total noninterest
expense
|
260,878
|
|
240,747
|
|
Income before income
taxes
|
138,229
|
|
128,467
|
|
Income tax
expense
|
32,286
|
|
29,450
|
|
Net income
|
$
105,943
|
|
99,017
|
|
|
|
|
|
Basic earnings per
share
|
$
0.83
|
|
0.78
|
|
Diluted earnings per
share
|
$
0.83
|
|
0.78
|
|
|
|
|
|
Annualized return on
average equity
|
9.37 %
|
|
8.61 %
|
|
Annualized return on
average assets
|
0.99 %
|
|
0.93 %
|
|
Annualized return on
tangible common equity *
|
12.74 %
|
|
12.38 %
|
|
|
|
|
|
Efficiency
ratio
|
63.01 %
|
|
62.27 %
|
|
Efficiency ratio,
excluding certain items (1) **
|
61.33 %
|
|
61.05 %
|
|
Annualized noninterest
expense to average assets
|
2.45 %
|
|
2.26 %
|
|
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
September 30,
|
|
Nine months ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Reconciliation of net
income to adjusted net operating income:
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
$
39,220
|
|
37,304
|
|
105,943
|
|
99,017
|
|
Non-GAAP
adjustments
|
|
|
|
|
|
|
|
|
Add: merger, asset
disposition and restructuring expense
|
—
|
|
—
|
|
4,395
|
|
1,374
|
|
Less: tax benefit of
merger, asset disposition and restructuring expense
|
—
|
|
—
|
|
(1,231)
|
|
(385)
|
|
Adjusted net operating
income (non-GAAP)
|
$
39,220
|
|
37,304
|
|
109,107
|
|
100,006
|
|
Diluted earnings per
share (GAAP)
|
$
0.31
|
|
0.29
|
|
0.83
|
|
0.78
|
|
Diluted adjusted
operating earnings per share (non-GAAP)
|
$
0.31
|
|
0.29
|
|
0.86
|
|
0.79
|
|
|
|
|
|
|
|
|
|
Average
equity
|
$ 1,515,287
|
|
1,503,626
|
|
1,511,428
|
|
1,536,706
|
|
Average
assets
|
14,379,323
|
|
14,052,919
|
|
14,249,857
|
|
14,243,277
|
|
Annualized return on
average equity (GAAP)
|
10.27 %
|
|
9.84 %
|
|
9.37 %
|
|
8.61 %
|
|
Annualized return on
average assets (GAAP)
|
1.08 %
|
|
1.05 %
|
|
0.99 %
|
|
0.93 %
|
|
Annualized return on
average equity, excluding merger, asset disposition and
restructuring expense, net of tax (non-GAAP)
|
10.27 %
|
|
9.84 %
|
|
9.65 %
|
|
8.70 %
|
|
Annualized return on
average assets, excluding merger, asset disposition and
restructuring expense, net of tax (non-GAAP)
|
1.08 %
|
|
1.05 %
|
|
1.02 %
|
|
0.94 %
|
|
|
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.
|
|
September
30,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
Tangible common
equity to assets
|
|
|
|
|
|
|
Total shareholders'
equity
|
$
1,498,431
|
|
1,491,486
|
|
1,459,786
|
|
Less: goodwill
and intangible assets
|
(387,010)
|
|
(389,557)
|
|
(390,488)
|
|
Tangible common
equity
|
$
1,111,421
|
|
1,101,929
|
|
1,069,298
|
|
|
|
|
|
|
|
Total assets
|
$ 14,362,201
|
|
14,113,324
|
|
13,953,144
|
|
Less: goodwill and
intangible assets
|
(387,010)
|
|
(389,557)
|
|
(390,488)
|
|
Tangible
assets
|
$ 13,975,191
|
|
13,723,767
|
|
13,562,656
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets
|
7.95 %
|
|
8.03 %
|
|
7.88 %
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets, including unrealized losses on
held-to-maturity
investments
|
|
|
|
|
|
|
Tangible common
equity
|
$
1,111,421
|
|
1,101,929
|
|
1,069,298
|
|
Less: unrealized
losses on held to maturity investments
|
(147,425)
|
|
(129,865)
|
|
(128,174)
|
|
Add: deferred taxes on
unrealized losses on held to maturity investments
|
41,279
|
|
36,362
|
|
35,889
|
|
Tangible common equity,
including unrealized losses on held-to-maturity
investments
|
$
1,005,275
|
|
1,008,426
|
|
977,013
|
|
|
|
|
|
|
|
Tangible
assets
|
13,975,191
|
|
13,723,767
|
|
13,562,656
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets, including unrealized losses on
held-to-maturity
investments
|
7.19 %
|
|
7.35 %
|
|
7.20 %
|
|
|
|
|
|
|
|
Tangible book value
per share
|
|
|
|
|
|
|
Tangible common
equity
|
$
1,111,421
|
|
1,101,929
|
|
1,069,298
|
|
Common shares
outstanding
|
127,101,349
|
|
127,028,848
|
|
126,921,989
|
|
Tangible book value per
share
|
8.74
|
|
8.67
|
|
8.42
|
|
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
|
|
Nine months ended
September 30,
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Annualized return on
tangible common equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
39,220
|
|
33,044
|
|
33,679
|
|
34,649
|
|
37,304
|
|
105,943
|
|
99,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
1,498,431
|
|
1,511,501
|
|
1,513,275
|
|
1,491,486
|
|
1,459,786
|
|
1,498,431
|
|
1,459,786
|
|
Less: goodwill and
intangible assets
|
(387,010)
|
|
(387,806)
|
|
(388,648)
|
|
(389,557)
|
|
(390,488)
|
|
(387,010)
|
|
(390,488)
|
|
Tangible common
equity
|
$
1,111,421
|
|
1,123,695
|
|
1,124,627
|
|
1,101,929
|
|
1,069,298
|
|
1,111,421
|
|
1,069,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
tangible common equity
|
14.00 %
|
|
11.79 %
|
|
12.15 %
|
|
12.48 %
|
|
13.84 %
|
|
12.74 %
|
|
12.38 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio,
excluding amortization and merger, asset disposition and
restructuring expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
$
87,570
|
|
85,858
|
|
87,450
|
|
88,778
|
|
78,988
|
|
260,878
|
|
240,747
|
|
Less: amortization
expense
|
(795)
|
|
(842)
|
|
(909)
|
|
(932)
|
|
(1,047)
|
|
(2,546)
|
|
(3,345)
|
|
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
|
$
86,775
|
|
83,423
|
|
83,739
|
|
83,603
|
|
77,941
|
|
253,937
|
|
236,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$ 108,368
|
|
108,549
|
|
112,464
|
|
117,044
|
|
112,749
|
|
329,381
|
|
303,637
|
|
Non-interest
income
|
30,888
|
|
29,797
|
|
23,969
|
|
27,858
|
|
26,803
|
|
84,654
|
|
82,991
|
|
Net interest income
plus non-interest income
|
$ 139,256
|
|
138,346
|
|
136,433
|
|
144,902
|
|
139,552
|
|
414,035
|
|
386,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio,
excluding amortization and merger, asset disposition and
restructuring
expenses
|
62.31 %
|
|
60.30 %
|
|
61.38 %
|
|
57.70 %
|
|
55.85 %
|
|
61.33 %
|
|
61.05 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
86,775
|
|
83,423
|
|
83,739
|
|
83,603
|
|
77,941
|
|
253,937
|
|
236,028
|
|
Average
assets
|
14,379,323
|
|
14,245,917
|
|
14,121,496
|
|
13,983,100
|
|
14,052,919
|
|
14,249,857
|
|
14,243,277
|
|
Annualized non-interest
expense to average assets, excluding amortization and merger,
asset disposition and restructuring expense
|
2.39 %
|
|
2.35 %
|
|
2.40 %
|
|
2.37 %
|
|
2.20 %
|
|
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 regarding the Company's uninsured deposits
portfolio:
|
|
|
As of
September 30, 2023
|
|
Balance
|
|
Percent of
total deposits
|
|
Number of
relationships
|
|
Uninsured deposits per
the Call Report (1)
|
$
2,868,596
|
|
25.10 %
|
|
4,943
|
|
Less intercompany
deposit accounts
|
922,235
|
|
7.82 %
|
|
13
|
|
Less collateralized
deposit accounts
|
524,715
|
|
4.45 %
|
|
274
|
|
Adjusted balance of
uninsured deposits
|
$
1,421,646
|
|
12.06 %
|
|
4,656
|
|
|
|
(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 $25.8
million, or 0.22% of total deposits, as of September 30, 2023.
Our top ten largest uninsured depositors, excluding intercompany
and collateralized deposit accounts, had an aggregate uninsured
deposit balance of $117.0 million, or 0.99% of total deposits, as
of September 30, 2023. The average adjusted uninsured deposit
account balance was $305,000 as of September 30, 2023.
|
|
The following table
provides additional details over the Company's deposit
portfolio:
|
|
|
As of
September 30, 2023
|
|
Balance
|
|
Percent of
total deposits
|
|
Number of
accounts
|
|
Personal noninterest
bearing demand deposits
|
$
1,375,144
|
|
11.66 %
|
|
290,763
|
|
Business noninterest
bearing demand deposits
|
1,399,147
|
|
11.87
|
|
45,435
|
|
Personal
interest-bearing demand deposits
|
1,477,617
|
|
12.53
|
|
59,309
|
|
Business
interest-bearing demand deposits
|
1,120,463
|
|
9.50
|
|
8,110
|
|
Personal money market
deposits
|
1,463,689
|
|
12.42
|
|
25,884
|
|
Business money market
deposits
|
579,124
|
|
4.91
|
|
2,916
|
|
Savings
deposits
|
2,116,360
|
|
17.95
|
|
210,196
|
|
Time
deposits
|
2,258,338
|
|
19.16
|
|
70,762
|
|
Total
deposits
|
$
11,789,882
|
|
100.00 %
|
|
713,375
|
|
|
Our average deposit
account balance as of September 30, 2023 was $16,500. The Company's
insured cash sweep deposit balance was $265.3 million as of
September 30, 2023.
|
|
The following table
provides additional details regarding the Company's deposit
portfolio over time:
|
|
|
3/31/2022
|
|
6/30/2022
|
|
9/30/2022
|
|
12/31/2022
|
|
3/31/2023
|
|
6/30/2023
|
|
9/30/2023
|
|
Personal noninterest
bearing demand deposits
|
$
1,413,732
|
|
1,388,690
|
|
1,413,781
|
|
1,412,227
|
|
1,428,232
|
|
1,397,167
|
|
1,375,144
|
|
Business noninterest
bearing demand deposits
|
1,715,117
|
|
1,669,559
|
|
1,680,339
|
|
1,581,016
|
|
1,467,860
|
|
1,423,396
|
|
1,399,147
|
|
Personal
interest-bearing demand deposits
|
1,787,295
|
|
1,785,761
|
|
1,742,173
|
|
1,718,806
|
|
1,627,546
|
|
1,535,254
|
|
1,477,617
|
|
Business
interest-bearing demand deposits
|
588,850
|
|
529,357
|
|
498,937
|
|
499,059
|
|
466,105
|
|
624,252
|
|
689,914
|
|
Municipal demand
deposits
|
515,477
|
|
543,573
|
|
571,620
|
|
468,566
|
|
447,852
|
|
418,147
|
|
430,549
|
|
Personal money market
deposits
|
1,999,564
|
|
1,994,907
|
|
1,949,379
|
|
1,832,583
|
|
1,626,614
|
|
1,511,652
|
|
1,463,689
|
|
Business money market
deposits
|
681,049
|
|
636,805
|
|
627,634
|
|
624,986
|
|
701,436
|
|
642,601
|
|
579,124
|
|
Savings
deposits
|
2,367,438
|
|
2,362,725
|
|
2,327,419
|
|
2,275,020
|
|
2,194,743
|
|
2,120,215
|
|
2,116,360
|
|
Time
deposits
|
1,251,878
|
|
1,155,878
|
|
1,067,110
|
|
1,052,285
|
|
1,576,791
|
|
1,989,711
|
|
2,258,338
|
|
Total
deposits
|
$
12,320,400
|
|
12,067,255
|
|
11,878,392
|
|
11,464,548
|
|
11,537,179
|
|
11,662,395
|
|
11,789,882
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Marketable Securities
(Unaudited)
(dollars in thousands)
|
|
|
|
September 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
|
|
—
|
|
(1,750)
|
|
18,250
|
|
3.12
|
|
Due after ten
years
|
|
50,166
|
|
—
|
|
(11,890)
|
|
38,276
|
|
6.20
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
issued by government sponsored enterprises:
|
|
|
|
|
|
|
|
|
|
|
|
Due after
one year through five years
|
|
45,985
|
|
—
|
|
(7,502)
|
|
38,483
|
|
4.58
|
|
Due after
five years through ten years
|
|
434
|
|
—
|
|
(11)
|
|
423
|
|
1.94
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
securities:
|
|
|
|
|
|
|
|
|
|
|
|
Due after one year
through five years
|
|
954
|
|
3
|
|
(9)
|
|
948
|
|
3.64
|
|
Due after
five years through ten years
|
|
21,976
|
|
—
|
|
(3,055)
|
|
18,921
|
|
7.05
|
|
Due after
ten years
|
|
62,990
|
|
—
|
|
(14,788)
|
|
48,202
|
|
10.76
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
debt issues:
|
|
|
|
|
|
|
|
|
|
|
|
Due after
five years through ten years
|
|
8,464
|
|
—
|
|
(1,000)
|
|
7,464
|
|
5.49
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed agency securities:
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
rate pass-through
|
|
213,849
|
|
—
|
|
(35,305)
|
|
178,544
|
|
6.17
|
|
Variable
rate pass-through
|
|
7,501
|
|
2
|
|
(169)
|
|
7,334
|
|
4.01
|
|
Fixed
rate agency CMOs
|
|
805,086
|
|
—
|
|
(175,985)
|
|
629,101
|
|
4.88
|
|
Variable
rate agency CMOs
|
|
24,675
|
|
28
|
|
(573)
|
|
24,130
|
|
3.37
|
|
Total
residential mortgage-backed agency securities
|
|
1,051,111
|
|
30
|
|
(212,032)
|
|
839,109
|
|
5.10
|
|
Total
marketable securities available-for-sale
|
|
$
1,262,080
|
|
33
|
|
(252,037)
|
|
1,010,076
|
|
5.40
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities
held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
Government
sponsored
|
|
|
|
|
|
|
|
|
|
|
|
Due after one year
through five years
|
|
$
49,471
|
|
—
|
|
(6,830)
|
|
42,641
|
|
3.75
|
|
Due after five years
through ten years
|
|
74,986
|
|
—
|
|
(14,901)
|
|
60,085
|
|
5.43
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed agency securities:
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
rate pass-through
|
|
151,411
|
|
—
|
|
(27,070)
|
|
124,341
|
|
5.18
|
|
Variable
rate pass-through
|
|
468
|
|
—
|
|
(8)
|
|
460
|
|
3.48
|
|
Fixed
rate agency CMOs
|
|
553,241
|
|
—
|
|
(98,606)
|
|
454,635
|
|
5.85
|
|
Variable
rate agency CMOs
|
|
529
|
|
—
|
|
(10)
|
|
519
|
|
5.40
|
|
Total
residential mortgage-backed agency securities
|
|
705,649
|
|
—
|
|
(125,694)
|
|
579,955
|
|
5.71
|
|
Total
marketable securities held-to-maturity
|
|
$
830,106
|
|
—
|
|
(147,425)
|
|
682,681
|
|
5.56
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Borrowed Funds
(Unaudited)
(dollars in thousands)
|
|
|
September 30,
2023
|
|
Amount
|
|
Average
rate
|
|
Term notes payable to
the FHLB of Pittsburgh, due within one year
|
$
375,400
|
|
5.65 %
|
|
Notes payable to the
FHLB of Pittsburgh, due within one year
|
119,000
|
|
5.68 %
|
|
Total term notes
payable to the FHLB
|
494,400
|
|
5.65 %
|
|
|
|
|
|
Collateralized
borrowings, due within one year
|
48,587
|
|
1.52 %
|
|
Collateral received,
due within one year
|
61,600
|
|
5.16 %
|
|
Subordinated
debentures, net of issuance costs
|
114,102
|
|
4.28 %
|
|
Junior subordinated
debentures
|
129,509
|
|
7.50 %
|
|
Total borrowed funds
*
|
$
848,198
|
|
5.48 %
|
|
|
|
*
|
As of September 30,
2023, the Company had $3.1 billion of additional borrowing capacity
available with the FHLB of Pittsburgh, including a $250.0 million
overnight line of credit, which had a $119.0 million drawn balance,
as well as $302.0 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 September 30, 2023:
|
|
|
September 30,
2023
|
|
Property
type
|
|
Percent of
portfolio
|
|
5 or more unit
dwelling
|
|
14.3 %
|
|
Nursing home
|
|
12.8
|
|
Retail
building
|
|
11.7
|
|
Commercial office
building - non-owner occupied
|
|
8.4
|
|
Residential acquisition
& development - 1-4 family, townhouses and
apartments
|
|
5.0
|
|
Warehouse/storage
building
|
|
4.0
|
|
Manufacturing &
industrial building
|
|
3.4
|
|
Commercial acquisition
and development
|
|
3.4
|
|
Commercial office
building - owner occupied
|
|
3.3
|
|
Multi-use building -
office and warehouse
|
|
3.3
|
|
Hotel/motel
|
|
2.9
|
|
Single family
dwelling
|
|
2.8
|
|
Other medical
facility
|
|
2.7
|
|
Student
housing
|
|
2.6
|
|
Multi-use building -
commercial, retail and residential
|
|
2.6
|
|
2-4 family
|
|
2.3
|
|
Agricultural real
estate
|
|
2.1
|
|
All other
|
|
12.4
|
|
Total
|
|
100.0 %
|
|
The following table
describes our commercial real estate portfolio by state at
September 30, 2023:
|
|
|
|
September 30,
2023
|
|
State
|
|
Percent of
portfolio
|
|
Pennsylvania
|
|
31.9 %
|
|
New York
|
|
31.7
|
|
Ohio
|
|
20.4
|
|
Indiana
|
|
8.5
|
|
All other
|
|
7.5
|
|
Total
|
|
100.0 %
|
|
Northwest Bancshares, Inc. and
Subsidiaries
Asset Quality (Unaudited)
(dollars
in thousands)
|
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
Nonaccrual loans
current:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
1,951
|
|
1,559
|
|
1,423
|
|
1,496
|
|
2,186
|
|
Home equity
loans
|
947
|
|
1,089
|
|
1,084
|
|
1,418
|
|
1,158
|
|
Consumer
loans
|
1,049
|
|
1,009
|
|
911
|
|
836
|
|
833
|
|
Commercial real estate
loans
|
44,639
|
|
48,468
|
|
50,045
|
|
53,303
|
|
56,193
|
|
Commercial
loans
|
1,369
|
|
995
|
|
1,468
|
|
895
|
|
1,801
|
|
Total nonaccrual loans
current
|
$
49,955
|
|
53,120
|
|
54,931
|
|
57,948
|
|
62,171
|
|
Nonaccrual loans
delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
48
|
|
49
|
|
688
|
|
473
|
|
54
|
|
Home equity
loans
|
92
|
|
37
|
|
18
|
|
180
|
|
316
|
|
Consumer
loans
|
274
|
|
309
|
|
223
|
|
178
|
|
155
|
|
Commercial real estate
loans
|
1,913
|
|
1,697
|
|
1,900
|
|
1,220
|
|
55
|
|
Commercial
loans
|
90
|
|
855
|
|
341
|
|
145
|
|
237
|
|
Total nonaccrual loans
delinquent 30 days to 59 days
|
$
2,417
|
|
2,947
|
|
3,170
|
|
2,196
|
|
817
|
|
Nonaccrual loans
delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
66
|
|
185
|
|
919
|
|
31
|
|
32
|
|
Home equity
loans
|
319
|
|
363
|
|
338
|
|
290
|
|
432
|
|
Consumer
loans
|
312
|
|
360
|
|
340
|
|
341
|
|
382
|
|
Commercial real estate
loans
|
212
|
|
210
|
|
1,355
|
|
473
|
|
848
|
|
Commercial
loans
|
291
|
|
245
|
|
126
|
|
96
|
|
132
|
|
Total nonaccrual loans
delinquent 60 days to 89 days
|
$
1,200
|
|
1,363
|
|
3,078
|
|
1,231
|
|
1,826
|
|
Nonaccrual loans
delinquent 90 days or more:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
7,695
|
|
6,290
|
|
3,300
|
|
5,574
|
|
5,544
|
|
Home equity
loans
|
2,073
|
|
1,965
|
|
2,190
|
|
2,257
|
|
1,779
|
|
Consumer
loans
|
2,463
|
|
2,033
|
|
2,791
|
|
2,672
|
|
2,031
|
|
Commercial real estate
loans
|
8,416
|
|
8,575
|
|
8,010
|
|
7,867
|
|
8,821
|
|
Commercial
loans
|
2,435
|
|
2,296
|
|
1,139
|
|
1,491
|
|
638
|
|
Total nonaccrual loans
delinquent 90 days or more
|
$
23,082
|
|
21,159
|
|
17,430
|
|
19,861
|
|
18,813
|
|
Total nonaccrual
loans
|
$
76,654
|
|
78,589
|
|
78,609
|
|
81,236
|
|
83,627
|
|
Total nonaccrual
loans
|
$
76,654
|
|
78,589
|
|
78,609
|
|
81,236
|
|
83,627
|
|
Loans 90 days past due
and still accruing
|
728
|
|
532
|
|
652
|
|
744
|
|
357
|
|
Nonperforming
loans
|
77,382
|
|
79,121
|
|
79,261
|
|
81,980
|
|
83,984
|
|
Real estate owned,
net
|
363
|
|
371
|
|
524
|
|
413
|
|
450
|
|
Nonperforming
assets
|
$
77,745
|
|
79,492
|
|
79,785
|
|
82,393
|
|
84,434
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to
total loans
|
0.68 %
|
|
0.70 %
|
|
0.71 %
|
|
0.75 %
|
|
0.78 %
|
|
Nonperforming assets to
total assets
|
0.54 %
|
|
0.56 %
|
|
0.56 %
|
|
0.58 %
|
|
0.61 %
|
|
Allowance for credit
losses to total loans
|
1.10 %
|
|
1.10 %
|
|
1.09 %
|
|
1.08 %
|
|
1.02 %
|
|
Allowance for total
loans excluding PPP loan balances
|
1.10 %
|
|
1.10 %
|
|
1.09 %
|
|
1.08 %
|
|
1.02 %
|
|
Allowance for credit
losses to nonperforming loans
|
161.33 %
|
|
157.26 %
|
|
152.98 %
|
|
143.98 %
|
|
130.76 %
|
|
Northwest Bancshares, Inc. and
Subsidiaries
Loans by Credit Quality Indicators
(Unaudited)
(dollars in thousands)
|
|
|
At September 30,
2023
|
|
Pass
|
|
Special
mention *
|
|
Substandard
**
|
|
Doubtful
|
|
Loss
|
|
Loans
receivable
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
3,459,251
|
|
—
|
|
13,512
|
|
—
|
|
—
|
|
3,472,763
|
|
Home equity
loans
|
|
1,254,985
|
|
—
|
|
3,780
|
|
—
|
|
—
|
|
1,258,765
|
|
Consumer
loans
|
|
2,150,464
|
|
—
|
|
4,655
|
|
—
|
|
—
|
|
2,155,119
|
|
Total Personal
Banking
|
|
6,864,700
|
|
—
|
|
21,947
|
|
—
|
|
—
|
|
6,886,647
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,632,472
|
|
123,935
|
|
166,610
|
|
—
|
|
—
|
|
2,923,017
|
|
Commercial
loans
|
|
1,476,833
|
|
3,690
|
|
20,086
|
|
—
|
|
—
|
|
1,500,609
|
|
Total Commercial
Banking
|
|
4,109,305
|
|
127,625
|
|
186,696
|
|
—
|
|
—
|
|
4,423,626
|
|
Total loans
|
|
$ 10,974,005
|
|
127,625
|
|
208,643
|
|
—
|
|
—
|
|
11,310,273
|
|
At June 30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
*
|
Includes $6.9 million,
$4.9 million, $7.4 million, $7.4 million, and $4.5 million of
acquired loans at September 30, 2023, June 30, 2023, March 31,
2023, December 31, 2022, and September 30, 2022,
respectively.
|
|
**
|
Includes $28.9 million,
$31.2 million, $31.9 million, $39.1 million, and $51.4 million of
acquired loans at September 30, 2023, June 30, 2023, March 31,
2023, December 31, 2022, and September 30, 2022,
respectively.
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Loan Delinquency
(Unaudited)
(dollars in thousands)
|
|
|
September
30,
2023
|
|
*
|
|
June 30,
2023
|
|
*
|
|
March 31,
2023
|
|
*
|
|
December 31,
2022
|
|
*
|
|
September
30,
2022
|
|
*
|
|
(Number of loans and
dollar amount of loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 30
days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
6
|
|
$ 573
|
|
— %
|
|
14
|
|
$ 627
|
|
— %
|
|
259
|
|
$
26,992
|
|
0.8 %
|
|
304
|
|
$
29,487
|
|
0.8 %
|
|
26
|
|
$
1,052
|
|
— %
|
|
Home equity
loans
|
112
|
|
4,707
|
|
0.4 %
|
|
92
|
|
3,395
|
|
0.3 %
|
|
111
|
|
4,235
|
|
0.3 %
|
|
145
|
|
6,657
|
|
0.5 %
|
|
88
|
|
3,278
|
|
0.3 %
|
|
Consumer
loans
|
733
|
|
9,874
|
|
0.5 %
|
|
602
|
|
7,955
|
|
0.4 %
|
|
587
|
|
6,930
|
|
0.3 %
|
|
737
|
|
9,435
|
|
0.4 %
|
|
549
|
|
6,546
|
|
0.3 %
|
|
Commercial real estate
loans
|
22
|
|
3,411
|
|
0.1 %
|
|
13
|
|
2,710
|
|
0.1 %
|
|
23
|
|
4,834
|
|
0.2 %
|
|
29
|
|
4,008
|
|
0.1 %
|
|
13
|
|
1,332
|
|
— %
|
|
Commercial
loans
|
52
|
|
2,847
|
|
0.2 %
|
|
38
|
|
15,658
|
|
1.1 %
|
|
46
|
|
4,253
|
|
0.3 %
|
|
51
|
|
2,648
|
|
0.2 %
|
|
48
|
|
2,582
|
|
0.2 %
|
|
Total loans delinquent
30 days to 59 days
|
925
|
|
$
21,412
|
|
0.2 %
|
|
759
|
|
$
30,345
|
|
0.3 %
|
|
1,026
|
|
$
47,244
|
|
0.4 %
|
|
1,266
|
|
$
52,235
|
|
0.5 %
|
|
724
|
|
$
14,790
|
|
0.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60
days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
56
|
|
$
5,395
|
|
0.2 %
|
|
52
|
|
$
3,521
|
|
0.1 %
|
|
23
|
|
$
1,922
|
|
0.1 %
|
|
65
|
|
$
5,563
|
|
0.2 %
|
|
51
|
|
$
4,320
|
|
0.1 %
|
|
Home equity
loans
|
40
|
|
1,341
|
|
0.1 %
|
|
31
|
|
1,614
|
|
0.1 %
|
|
31
|
|
1,061
|
|
0.1 %
|
|
29
|
|
975
|
|
0.1 %
|
|
36
|
|
1,227
|
|
0.1 %
|
|
Consumer
loans
|
236
|
|
2,707
|
|
0.1 %
|
|
250
|
|
2,584
|
|
0.1 %
|
|
185
|
|
2,083
|
|
0.1 %
|
|
255
|
|
3,070
|
|
0.1 %
|
|
223
|
|
2,663
|
|
0.1 %
|
|
Commercial real estate
loans
|
13
|
|
1,588
|
|
0.1 %
|
|
12
|
|
1,288
|
|
— %
|
|
17
|
|
1,949
|
|
0.1 %
|
|
16
|
|
2,377
|
|
0.1 %
|
|
13
|
|
1,741
|
|
0.1 %
|
|
Commercial
loans
|
15
|
|
981
|
|
0.1 %
|
|
23
|
|
11,092
|
|
0.8 %
|
|
19
|
|
1,088
|
|
0.1 %
|
|
24
|
|
1,115
|
|
0.1 %
|
|
14
|
|
808
|
|
0.1 %
|
|
Total loans delinquent
60 days to 89 days
|
360
|
|
$
12,012
|
|
0.1 %
|
|
368
|
|
$
20,099
|
|
0.2 %
|
|
275
|
|
$
8,103
|
|
0.1 %
|
|
389
|
|
$
13,100
|
|
0.1 %
|
|
337
|
|
$
10,759
|
|
0.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90
days or more: **
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
79
|
|
$
7,695
|
|
0.2 %
|
|
63
|
|
$
6,290
|
|
0.2 %
|
|
39
|
|
$
3,300
|
|
0.1 %
|
|
65
|
|
$
5,574
|
|
0.2 %
|
|
64
|
|
$
5,544
|
|
0.2 %
|
|
Home equity
loans
|
73
|
|
2,206
|
|
0.2 %
|
|
68
|
|
1,965
|
|
0.2 %
|
|
65
|
|
2,190
|
|
0.2 %
|
|
68
|
|
2,257
|
|
0.2 %
|
|
65
|
|
1,779
|
|
0.1 %
|
|
Consumer
loans
|
357
|
|
3,020
|
|
0.1 %
|
|
314
|
|
2,447
|
|
0.1 %
|
|
313
|
|
3,279
|
|
0.1 %
|
|
334
|
|
3,079
|
|
0.1 %
|
|
289
|
|
2,388
|
|
0.1 %
|
|
Commercial real estate
loans
|
27
|
|
8,416
|
|
0.3 %
|
|
20
|
|
8,575
|
|
0.3 %
|
|
18
|
|
8,010
|
|
0.3 %
|
|
19
|
|
7,867
|
|
0.3 %
|
|
22
|
|
8,821
|
|
0.3 %
|
|
Commercial
loans
|
39
|
|
2,472
|
|
0.2 %
|
|
38
|
|
2,414
|
|
0.2 %
|
|
24
|
|
1,302
|
|
0.1 %
|
|
15
|
|
1,829
|
|
0.2 %
|
|
11
|
|
638
|
|
0.1 %
|
|
Total loans delinquent
90 days or more
|
575
|
|
$
23,809
|
|
0.2 %
|
|
503
|
|
$
21,691
|
|
0.2 %
|
|
459
|
|
$
18,081
|
|
0.2 %
|
|
501
|
|
$
20,606
|
|
0.2 %
|
|
451
|
|
$
19,170
|
|
0.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
delinquent
|
1,860
|
|
$
57,233
|
|
0.5 %
|
|
1,630
|
|
$
72,135
|
|
0.6 %
|
|
1,760
|
|
$
73,428
|
|
0.7 %
|
|
2,156
|
|
$
85,941
|
|
0.8 %
|
|
1,512
|
|
$
44,719
|
|
0.4 %
|
|
|
|
*
|
Represents delinquency,
in dollars, divided by the respective total amount of that type of
loan outstanding.
|
|
**
|
Includes purchased
credit deteriorated loans of $1.4 million, $605,000, $331,000, $1.7
million, and $783,000 at September 30, 2023, June 30, 2023, March
31, 2023, December 31, 2022, and September 30, 2022,
respectively.
|
|
Northwest Bancshares, Inc. and
Subsidiaries
Allowance for Credit Losses
(Unaudited)
(dollars in thousands)
|
|
|
Quarter ended
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
Beginning
balance
|
$ 124,423
|
|
121,257
|
|
118,036
|
|
109,819
|
|
98,355
|
|
ASU 2022-02
Adoption
|
—
|
|
—
|
|
426
|
|
—
|
|
—
|
|
Provision
|
3,983
|
|
6,010
|
|
4,870
|
|
9,023
|
|
7,689
|
|
Charge-offs residential
mortgage
|
(171)
|
|
(545)
|
|
(207)
|
|
(546)
|
|
(166)
|
|
Charge-offs home
equity
|
(320)
|
|
(235)
|
|
(164)
|
|
(232)
|
|
(535)
|
|
Charge-offs
consumer
|
(3,085)
|
|
(2,772)
|
|
(2,734)
|
|
(2,430)
|
|
(2,341)
|
|
Charge-offs commercial
real estate
|
(484)
|
|
(483)
|
|
(657)
|
|
(621)
|
|
(1,329)
|
|
Charge-offs
commercial
|
(1,286)
|
|
(1,209)
|
|
(865)
|
|
(404)
|
|
(243)
|
|
Recoveries
|
1,781
|
|
2,400
|
|
2,552
|
|
3,427
|
|
8,389
|
|
Ending
balance
|
$ 124,841
|
|
124,423
|
|
121,257
|
|
118,036
|
|
109,819
|
|
Net charge-offs to
average loans, annualized
|
0.13 %
|
|
0.10 %
|
|
0.08 %
|
|
0.03 %
|
|
(0.14) %
|
|
Nine months ended
September 30,
|
|
2023
|
|
2022
|
|
Beginning
balance
|
$
118,036
|
|
102,241
|
|
ASU 2022-02
Adoption
|
426
|
|
—
|
|
Provision
|
14,863
|
|
8,837
|
|
Charge-offs residential
mortgage
|
(923)
|
|
(1,487)
|
|
Charge-offs home
equity
|
(719)
|
|
(1,237)
|
|
Charge-offs
consumer
|
(8,591)
|
|
(5,976)
|
|
Charge-offs commercial
real estate
|
(1,624)
|
|
(6,745)
|
|
Charge-offs
commercial
|
(3,360)
|
|
(1,253)
|
|
Recoveries
|
6,733
|
|
15,439
|
|
Ending
balance
|
$
124,841
|
|
109,819
|
|
Net charge-offs to
average loans, annualized
|
0.10 %
|
|
0.02 %
|
|
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
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 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
|
$
3,476,446
|
|
32,596
|
|
3.75 %
|
|
$
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 %
|
|
Home equity
loans
|
1,264,134
|
|
17,435
|
|
5.47 %
|
|
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 %
|
|
Consumer
loans
|
2,092,023
|
|
23,521
|
|
4.46 %
|
|
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 %
|
|
Commercial real estate
loans
|
2,911,145
|
|
41,611
|
|
5.67 %
|
|
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 %
|
|
Commercial
loans
|
1,447,211
|
|
26,239
|
|
7.19 %
|
|
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 %
|
|
Total loans receivable
(a) (b) (d)
|
11,190,959
|
|
141,402
|
|
5.01 %
|
|
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 %
|
|
Mortgage-backed
securities (c)
|
1,781,010
|
|
8,072
|
|
1.81 %
|
|
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 %
|
|
Investment securities
(c) (d)
|
336,125
|
|
1,431
|
|
1.70 %
|
|
374,560
|
|
1,715
|
|
1.83 %
|
|
384,717
|
|
1,761
|
|
1.83 %
|
|
386,468
|
|
1,753
|
|
1.81 %
|
|
388,755
|
|
1,762
|
|
1.81 %
|
|
FHLB stock, at
cost
|
37,722
|
|
668
|
|
7.03 %
|
|
45,505
|
|
844
|
|
7.44 %
|
|
39,631
|
|
690
|
|
7.06 %
|
|
26,827
|
|
419
|
|
6.19 %
|
|
14,028
|
|
148
|
|
4.19 %
|
|
Other interest-earning
deposits
|
59,433
|
|
915
|
|
6.11 %
|
|
38,912
|
|
594
|
|
6.12 %
|
|
30,774
|
|
423
|
|
5.50 %
|
|
9,990
|
|
153
|
|
5.99 %
|
|
253,192
|
|
1,295
|
|
2.00 %
|
|
Total interest-earning
assets
|
13,405,249
|
|
152,488
|
|
4.51 %
|
|
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 %
|
|
Noninterest-earning
assets (e)
|
974,074
|
|
|
|
|
|
861,853
|
|
|
|
|
|
869,566
|
|
|
|
|
|
877,121
|
|
|
|
|
|
896,663
|
|
|
|
|
|
Total assets
|
$
14,379,323
|
|
|
|
|
|
$
14,245,917
|
|
|
|
|
|
$
14,121,496
|
|
|
|
|
|
$
13,983,100
|
|
|
|
|
|
$
14,052,919
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits
(g)
|
$
2,116,759
|
|
2,695
|
|
0.51 %
|
|
$
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 %
|
|
Interest-bearing
demand deposits (g)
|
2,569,229
|
|
4,086
|
|
0.63 %
|
|
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 %
|
|
Money market deposit
accounts (g)
|
2,112,228
|
|
6,772
|
|
1.27 %
|
|
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 %
|
|
Time deposits
(g)
|
2,164,559
|
|
18,136
|
|
3.32 %
|
|
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 %
|
|
Borrowed funds
(f)
|
643,518
|
|
7,937
|
|
4.89 %
|
|
837,358
|
|
10,202
|
|
4.89 %
|
|
740,218
|
|
7,938
|
|
4.35 %
|
|
451,369
|
|
3,967
|
|
3.49 %
|
|
127,073
|
|
239
|
|
0.75 %
|
|
Subordinated
debt
|
114,045
|
|
1,148
|
|
4.03 %
|
|
113,958
|
|
1,148
|
|
4.03 %
|
|
113,870
|
|
1,148
|
|
4.03 %
|
|
113,783
|
|
1,148
|
|
4.04 %
|
|
113,695
|
|
1,149
|
|
4.04 %
|
|
Junior subordinated
debentures
|
129,466
|
|
2,456
|
|
7.42 %
|
|
129,401
|
|
2,280
|
|
6.97 %
|
|
129,335
|
|
2,152
|
|
6.66 %
|
|
129,271
|
|
1,823
|
|
5.52 %
|
|
129,207
|
|
1,322
|
|
4.00 %
|
|
Total interest-bearing
liabilities
|
9,849,804
|
|
43,230
|
|
1.74 %
|
|
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 %
|
|
Noninterest-bearing
demand deposits (g)
|
2,757,091
|
|
|
|
|
|
2,820,928
|
|
|
|
|
|
2,889,973
|
|
|
|
|
|
3,039,000
|
|
|
|
|
|
3,093,490
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
257,141
|
|
|
|
|
|
224,508
|
|
|
|
|
|
235,213
|
|
|
|
|
|
229,794
|
|
|
|
|
|
209,486
|
|
|
|
|
|
Total
liabilities
|
12,864,036
|
|
|
|
|
|
12,725,927
|
|
|
|
|
|
12,622,671
|
|
|
|
|
|
12,517,815
|
|
|
|
|
|
12,549,293
|
|
|
|
|
|
Shareholders'
equity
|
1,515,287
|
|
|
|
|
|
1,519,990
|
|
|
|
|
|
1,498,825
|
|
|
|
|
|
1,465,285
|
|
|
|
|
|
1,503,626
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
14,379,323
|
|
|
|
|
|
$
14,245,917
|
|
|
|
|
|
$
14,121,496
|
|
|
|
|
|
$
13,983,100
|
|
|
|
|
|
$
14,052,919
|
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
109,258
|
|
2.77 %
|
|
|
|
109,375
|
|
2.87 %
|
|
|
|
113,256
|
|
3.19 %
|
|
|
|
117,809
|
|
3.43 %
|
|
|
|
113,485
|
|
3.35 %
|
|
Net interest-earning
assets/Net interest margin
|
$
3,555,445
|
|
|
|
3.23 %
|
|
$
3,703,573
|
|
|
|
3.28 %
|
|
$
3,754,445
|
|
|
|
3.47 %
|
|
$
3,856,958
|
|
|
|
3.57 %
|
|
$
3,909,939
|
|
|
|
3.42 %
|
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.36X
|
|
|
|
|
|
1.38X
|
|
|
|
|
|
1.40X
|
|
|
|
|
|
1.42X
|
|
|
|
|
|
1.42X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 1.07%, 0.77%, 0.40%, 0.13%, and 0.11%, respectively
and average cost of Interest-bearing deposits were 1.40%, 1.02%,
0.54%, 0.18%, and 0.14%, respectively.
|
|
(h)
|
Shown on a FTE basis.
GAAP basis yields for the periods indicated were: Loans — 4.99%,
4.81%, 4.61%, 4.33%, and 4.05%, respectively, Investment
securities — 1.52%, 1.61%, 1.61%, 1.59%, and 1.59%,
respectively, Interest-earning assets — 4.49%, 4.32%,
4.13%, 3.87%, and 3.58%, respectively. GAAP basis net interest rate
spreads were 2.75%, 2.85%, 3.17%, 3.41%, and 3.33%, respectively,
and GAAP basis net interest margins were 3.21%, 3.25%, 3.44%,
3.54%, and 3.40%, 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.
|
|
|
Nine months ended
September 30,
|
|
2023
|
|
2022
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$ 3,485,130
|
|
97,090
|
|
3.71 %
|
|
$ 3,162,758
|
|
82,282
|
|
3.47 %
|
|
Home equity
loans
|
1,273,878
|
|
50,467
|
|
5.30 %
|
|
1,282,045
|
|
37,443
|
|
3.90 %
|
|
Consumer
loans
|
2,119,717
|
|
66,977
|
|
4.22 %
|
|
1,887,843
|
|
47,588
|
|
3.37 %
|
|
Commercial real estate
loans
|
2,857,555
|
|
117,074
|
|
5.48 %
|
|
2,918,940
|
|
95,813
|
|
4.33 %
|
|
Commercial
loans
|
1,312,750
|
|
67,465
|
|
6.87 %
|
|
929,942
|
|
28,981
|
|
4.11 %
|
|
Loans receivable
(a) (b) (d)
|
11,049,030
|
|
399,073
|
|
4.83 %
|
|
10,181,528
|
|
292,107
|
|
3.84 %
|
|
Mortgage-backed
securities (c)
|
1,849,567
|
|
24,935
|
|
1.80 %
|
|
1,972,694
|
|
22,201
|
|
1.50 %
|
|
Investment securities
(c) (d)
|
364,956
|
|
4,909
|
|
1.79 %
|
|
379,850
|
|
4,923
|
|
1.73 %
|
|
FHLB stock, at
cost
|
40,945
|
|
2,202
|
|
7.19 %
|
|
13,776
|
|
311
|
|
3.02 %
|
|
Other interest-earning
deposits
|
64,560
|
|
1,931
|
|
4.00 %
|
|
753,482
|
|
3,447
|
|
0.60 %
|
|
Total interest-earning
assets
|
13,369,058
|
|
433,050
|
|
4.33 %
|
|
13,301,330
|
|
322,989
|
|
3.25 %
|
|
Noninterest-earning
assets (e)
|
880,799
|
|
|
|
|
|
941,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
14,249,857
|
|
|
|
|
|
$
14,243,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits
(g)
|
$ 2,163,564
|
|
4,777
|
|
0.30 %
|
|
$ 2,348,944
|
|
1,758
|
|
0.10 %
|
|
Interest-bearing
demand deposits (g)
|
2,550,433
|
|
6,684
|
|
0.35 %
|
|
2,842,071
|
|
1,008
|
|
0.05 %
|
|
Money market deposit
accounts (g)
|
2,246,422
|
|
17,289
|
|
1.03 %
|
|
2,647,301
|
|
2,067
|
|
0.10 %
|
|
Time deposits
(g)
|
1,733,428
|
|
35,993
|
|
2.78 %
|
|
1,207,444
|
|
5,416
|
|
0.60 %
|
|
Borrowed funds
(f)
|
740,011
|
|
26,077
|
|
4.71 %
|
|
131,368
|
|
563
|
|
0.57 %
|
|
Subordinated
debt
|
113,958
|
|
3,444
|
|
4.03 %
|
|
118,919
|
|
3,603
|
|
4.04 %
|
|
Junior subordinated
debentures
|
129,401
|
|
6,889
|
|
7.02 %
|
|
129,142
|
|
2,893
|
|
2.95 %
|
|
Total interest-bearing
liabilities
|
9,677,217
|
|
101,153
|
|
1.40 %
|
|
9,425,189
|
|
17,308
|
|
0.25 %
|
|
Noninterest-bearing
demand deposits (g)
|
2,822,178
|
|
|
|
|
|
3,081,640
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
239,034
|
|
|
|
|
|
199,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
12,738,429
|
|
|
|
|
|
12,706,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
1,511,428
|
|
|
|
|
|
1,536,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
14,249,857
|
|
|
|
|
|
$
14,243,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
331,897
|
|
2.93 %
|
|
|
|
305,681
|
|
3.00 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets/Net interest margin
|
$ 3,691,841
|
|
|
|
3.32 %
|
|
$ 3,876,141
|
|
|
|
3.07 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.38X
|
|
|
|
|
|
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 0.75% and 0.11%, respectively and average cost of
Interest-bearing deposits were 1.00% and 0.15%,
respectively.
|
|
(h)
|
Shown on a FTE basis.
GAAP basis yields were: Loans — 4.81% and 3.82%, respectively;
Investment securities — 1.58% and 1.51%, respectively;
Interest-earning assets — 4.31% and 3.23%, respectively. GAAP
basis net interest rate spreads were 2.91% and 2.98%, respectively;
and GAAP basis net interest margins were 3.29% and 3.05%,
respectively.
|
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SOURCE Northwest Bank; Northwest Bancshares, Inc.