COLUMBUS, Ohio, Jan. 22,
2024 /PRNewswire/ -- Northwest Bancshares, Inc., (the
"Company"), (NasdaqGS: NWBI) announced net income for the quarter
ended December 31, 2023 of $29.0
million, or $0.23 per diluted
share. This represents a decrease of $5.6
million, or 16.3%, compared to the same quarter last year,
when net income was $34.6 million, or
$0.27 per diluted share. The
annualized returns on average shareholders' equity and average
assets for the quarter ended December 31, 2023 were 7.64% and
0.80% compared to 9.38% and 0.98% 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 February 14, 2024
to shareholders of record as of February 2, 2024. This is the
117th consecutive quarter in which the Company has paid a cash
dividend. Based on the market value of the Company's common stock
as of December 31, 2023, this represents an annualized
dividend yield of approximately 6.4%.
Louis J. Torchio,
President and CEO, added, "We were very pleased with 2023 results
as we continue to execute upon our commercial banking strategy
despite the current year liquidity and interest rate challenges for
the industry. We grew loans at a measured pace of 4.5%, but more
importantly we reallocated over $440.0
million from lower yielding investment securities, retail
loans and consumer loans into the more profitable commercial
portfolio, which grew $677.2 million,
or 17.1%. We were also pleased with the stability of our deposit
base throughout the year which grew $515.4
million, enabling us to reduce more expensive borrowed funds
by $282.3 million, and our tangible
common equity grew to 8.30%, which provides flexibility for growth
going forward."
Mr. Torchio continued, "We have also taken
additional measures to control our noninterest expense growth by
consolidating three more branches, rightsizing our retail and
consumer staff, and renegotiating third-party contracts across the
board. These measures required severance and professional service
costs in the fourth quarter of approximately $3.5 million. The expense savings going forward
will be allocated to the continued build-out of our credit
administration, risk management, and internal audit functions that
support our focus on commercial loan growth."
Net interest income decreased by $10.7 million, or 9.2%, to $106.3 million for the quarter ended
December 31, 2023, from $117.0
million for the quarter ended December 31, 2022. This
decrease in net interest income resulted primarily from a
$40.3 million increase in
interest expense due to increases in both the average balance and
average cost of interest-bearing liabilities. The average balance
of interest-bearing liabilities increased $663.1 million, or 7.2%, to $9.912 billion for the quarter ended
December 31, 2023 from $9.249 billion for the quarter ended
December 31, 2022, driven by an increase in time deposits and
borrowed funds. In addition, the cost of interest-bearing
liabilities increased to 2.04% for the quarter ended
December 31, 2023 from 0.46% for the quarter ended
December 31, 2022 due to higher market interest rates and
competitive pressure for liquidity. Partially offsetting this
increase in interest expense was a $29.5 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 4.67% for the
quarter ended December 31, 2023 from 3.89% for the quarter
ended December 31, 2022. Interest income on loans receivable
increased $29.4 million, or 25.1%,
due to an increase of $525.2 million,
or 4.9%, in the average balance of loans in addition to an increase
in the yield on loans to 5.19% for the quarter ended
December 31, 2023 from 4.35% for the quarter ended
December 31, 2022. The net effect of these changes in interest
rates and average balances was a decrease in the Company's net
interest margin to 3.16% for the quarter ended December 31,
2023 from 3.57% for the same quarter last year.
The provision for credit losses decreased by
$3.0 million, or 27.1%, to
$7.9 million for the current quarter
ended December 31, 2023 from $10.9
million for the quarter ended December 31, 2022.
Economic forecasts continued to improve, and the Company continued
to experience a decrease in substandard loans by $17.8 million, or 7.5%, to $218.5 million, or 1.91% of total loans, at
December 31, 2023 from $236.2
million, or 2.16% of total loans, at December 31, 2022.
This decrease was assisted by the note sale of approximately
$8.0 million of nonperforming loans
for a net gain of approximately $726,000. In addition, delinquencies remain well
controlled.
Noninterest income increased by $1.3 million, or 4.7%, to $29.2 million for the quarter ended
December 31, 2023, from $27.9
million for the quarter ended December 31, 2022. This
increase was driven by increases in core businesses such as service
charges and fees on deposits and loans, trust and other financial
services income and the net gain on the sale of SBA loans and other
real estate owned. Service charges and fees increased $1.8 million, or 12.7%, to $15.9 million for the quarter ended
December 31, 2023 from $14.1 million for the quarter ended
December 31, 2022 driven by deposit-related fees based on
customer activity as well as commercial loan fees, and the net gain
on real estate owned increased $1.0 million to $1.1 million for the quarter ended
December 31, 2023 from $51,000
for the quarter ended December 31, 2022 as a result of gains
on property sales in the current period. These increases were
partially offset by a $2.4 million, or 49.7%, decrease in other
operating income to $2.5 million
for the quarter ended December 31, 2023 from $4.9 million for the quarter ended
December 31, 2022 as a result of gains from the sales of
branch buildings associated with the previously announced branch
consolidations during the quarter ended December 31, 2022.
Noninterest expense increased by $1.9 million, or 2.1%, to $90.7 million for the quarter ended
December 31, 2023 from $88.8
million for the quarter ended December 31, 2022. This
increase primarily resulted from a $3.5 million, or 7.6%, increase in
compensation and employee benefits to $50.2 million for the quarter ended
December 31, 2023, from $46.7 million for the quarter ended
December 31, 2022 driven primarily by the buildout of the
commercial business and related credit, risk management and
internal audit support functions over the past twelve months.
Processing expenses increased $1.4 million, or 10.5%, to $15.0 million for the quarter ended
December 31, 2023, from $13.6 million for the quarter ended
December 31, 2022 due to the implementation of additional
third-party software platforms. FDIC insurance premiums increased
$1.3 million, or 100.4%, to
$2.6 million for the quarter ended
December 31, 2023 from $1.3
million for the quarter ended December 31, 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
$2.7 million, or 25.9%, to
$7.8 million for the quarter ended
December 31, 2023 from $10.6
million for the quarter ended December 31, 2022 due
primarily to lower income before income taxes.
Net income for the year ended December 31,
2023 was $135.0 million, or
$1.06 per diluted share. This
represents an increase of $1.3 million, or 1.0%, compared to the year
ended December 31, 2022, when net income was $133.7 million, or $1.05 per diluted share. The annualized returns
on average shareholders' equity and average assets for the year
ended December 31, 2023 were 8.94% and 0.95% compared to 8.80%
and 0.94% for the prior year. This increase in net income was the
result of an increase in net interest income of $15.0 million, or 3.6%, to $435.7 million for the year ended
December 31, 2023 from $420.7 million for the year ended
December 31, 2022. This increase in net interest income was
primarily due to an increase in the average yield on
interest-earning assets, partially offset by increases in the
average balance and average cost of interest-bearing liabilities.
The average yield on interest-earning assets increased to 4.42% for
the year ended December 31, 2023 compared to 3.41% for the
prior year due to the rising interest rate environment as well as
the change in asset mix to higher yielding commercial loans. The
average balance of interest-bearing liabilities increased by
$355.6 million, or 3.8% and the
average cost increased to 1.56% for the year ended December 31, 2023 from 0.30% for the year ended
December 31, 2022 due to rising
interest rates throughout the year as well as competitive pressure
for funding and liquidity. In addition, the total provision for
credit losses decreased $5.4 million, or 19.2% compared to the prior
year, specifically within the provision for unfunded commitments as
a result of the timing of the origination of loans with off balance
sheet exposures. Noninterest income increased $3.0 million, or 2.7% to $113.8 million for the year ended
December 31, 2023 from $110.8 million for the year ended
December 31, 2022, driven by a $4.0 million increase in service charges and
fees, $1.8 million in gains on
sales of SBA loans during the current year, and a $1.5 million increase in income from bank
owned life insurance as a result of death benefits received in the
current year. These changes were partially offset by a $22.0 million, or 6.7%, increase in
noninterest expense to $351.6 million for the year ended
December 31, 2023 from $329.5 million for the year ended
December 31, 2022, driven by a $7.3 million increase in compensation and
employee benefits expense, a $6.2 million increase in processing expenses
due to the implementation of additional third-party software
platforms, and a $4.5 million
increase in federal deposit insurance premiums due to an increase
in the deposit insurance assessment rate beginning in the first
quarter of 2023.
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 December 31, 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)
|
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
122,260
|
|
161,995
|
|
139,365
|
|
Marketable securities
available-for-sale (amortized cost of $1,240,003, $1,262,080 and
$1,431,728,
respectively)
|
1,043,359
|
|
1,010,076
|
|
1,218,108
|
|
Marketable securities
held-to-maturity (fair value of $699,506, $682,681 and $751,384,
respectively)
|
814,839
|
|
830,106
|
|
881,249
|
|
Total cash and cash
equivalents and marketable securities
|
1,980,458
|
|
2,002,177
|
|
2,238,722
|
|
|
|
|
|
|
|
Loans
held-for-sale
|
8,768
|
|
10,592
|
|
9,913
|
|
Residential mortgage
loans
|
3,419,417
|
|
3,462,606
|
|
3,488,686
|
|
Home equity
loans
|
1,227,858
|
|
1,258,765
|
|
1,297,674
|
|
Consumer
loans
|
2,126,027
|
|
2,155,119
|
|
2,168,655
|
|
Commercial real estate
loans
|
2,974,010
|
|
2,922,582
|
|
2,823,555
|
|
Commercial
loans
|
1,658,729
|
|
1,500,609
|
|
1,131,969
|
|
Total loans
receivable
|
11,414,809
|
|
11,310,273
|
|
10,920,452
|
|
Allowance for credit
losses
|
(125,243)
|
|
(124,841)
|
|
(118,036)
|
|
Loans receivable,
net
|
11,289,566
|
|
11,185,432
|
|
10,802,416
|
|
|
|
|
|
|
|
FHLB stock, at
cost
|
30,146
|
|
40,404
|
|
40,143
|
|
Accrued interest
receivable
|
47,353
|
|
42,624
|
|
35,528
|
|
Real estate owned,
net
|
104
|
|
363
|
|
413
|
|
Premises and equipment,
net
|
138,838
|
|
138,041
|
|
145,909
|
|
Bank-owned life
insurance
|
251,895
|
|
250,502
|
|
255,062
|
|
Goodwill
|
380,997
|
|
380,997
|
|
380,997
|
|
Other intangible
assets, net
|
5,290
|
|
6,013
|
|
8,560
|
|
Other assets
|
294,458
|
|
315,648
|
|
205,574
|
|
Total
assets
|
$
14,419,105
|
|
14,362,201
|
|
14,113,324
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$ 2,669,023
|
|
2,774,291
|
|
2,993,243
|
|
Interest-bearing demand
deposits
|
2,634,546
|
|
2,598,080
|
|
2,686,431
|
|
Money market deposit
accounts
|
1,968,218
|
|
2,042,813
|
|
2,457,569
|
|
Savings
deposits
|
2,105,234
|
|
2,116,360
|
|
2,275,020
|
|
Time
deposits
|
2,602,881
|
|
2,258,338
|
|
1,052,285
|
|
Total
deposits
|
11,979,902
|
|
11,789,882
|
|
11,464,548
|
|
|
|
|
|
|
|
Borrowed
funds
|
398,895
|
|
604,587
|
|
681,166
|
|
Subordinated
debt
|
114,189
|
|
114,102
|
|
113,840
|
|
Junior subordinated
debentures
|
129,574
|
|
129,509
|
|
129,314
|
|
Advances by borrowers
for taxes and insurance
|
45,253
|
|
27,653
|
|
47,613
|
|
Accrued interest
payable
|
13,669
|
|
7,915
|
|
3,231
|
|
Other
liabilities
|
186,306
|
|
190,122
|
|
182,126
|
|
Total
liabilities
|
12,867,788
|
|
12,863,770
|
|
12,621,838
|
|
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, 127,110,453, 127,101,349
and
127,028,848 shares
issued and outstanding, respectively
|
1,271
|
|
1,271
|
|
1,270
|
|
Additional paid-in
capital
|
1,024,852
|
|
1,023,591
|
|
1,019,647
|
|
Retained
earnings
|
674,686
|
|
671,092
|
|
641,727
|
|
Accumulated other
comprehensive loss
|
(149,492)
|
|
(197,523)
|
|
(171,158)
|
|
Total shareholders'
equity
|
1,551,317
|
|
1,498,431
|
|
1,491,486
|
|
Total liabilities and
shareholders' equity
|
$
14,419,105
|
|
14,362,201
|
|
14,113,324
|
|
|
|
|
|
|
|
Equity to
assets
|
10.76 %
|
|
10.43 %
|
|
10.57 %
|
|
Tangible common equity
to assets*
|
8.30 %
|
|
7.95 %
|
|
8.03 %
|
|
Book value per
share
|
$
12.20
|
|
11.79
|
|
11.74
|
|
Tangible book value
per share*
|
$
9.17
|
|
8.74
|
|
8.67
|
|
Closing market price
per share
|
$
12.48
|
|
10.23
|
|
13.98
|
|
Full time equivalent
employees
|
2,098
|
|
2,084
|
|
2,160
|
|
Number of banking
offices
|
142
|
|
142
|
|
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
|
|
December
31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March
31,
2023
|
|
December
31,
2022
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
$
146,523
|
|
140,667
|
|
132,724
|
|
123,745
|
|
117,137
|
|
Mortgage-backed
securities
|
7,951
|
|
8,072
|
|
8,326
|
|
8,537
|
|
8,603
|
|
Taxable investment
securities
|
786
|
|
786
|
|
841
|
|
845
|
|
840
|
|
Tax-free investment
securities
|
492
|
|
491
|
|
667
|
|
700
|
|
701
|
|
FHLB stock
dividends
|
666
|
|
668
|
|
844
|
|
690
|
|
419
|
|
Interest-earning
deposits
|
970
|
|
914
|
|
594
|
|
423
|
|
153
|
|
Total interest
income
|
157,388
|
|
151,598
|
|
143,996
|
|
134,940
|
|
127,853
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
40,600
|
|
31,688
|
|
21,817
|
|
11,238
|
|
3,871
|
|
Borrowed
funds
|
10,486
|
|
11,542
|
|
13,630
|
|
11,238
|
|
6,938
|
|
Total interest
expense
|
51,086
|
|
43,230
|
|
35,447
|
|
22,476
|
|
10,809
|
|
Net interest
income
|
106,302
|
|
108,368
|
|
108,549
|
|
112,464
|
|
117,044
|
|
Provision for credit
losses - loans
|
3,801
|
|
3,983
|
|
6,010
|
|
4,870
|
|
9,023
|
|
Provision for credit
losses - unfunded commitments (1)
|
4,145
|
|
(2,981)
|
|
2,920
|
|
126
|
|
1,876
|
|
Net interest income
after provision for credit losses
|
98,356
|
|
107,366
|
|
99,619
|
|
107,468
|
|
106,145
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
investments
|
(1)
|
|
—
|
|
(8,306)
|
|
—
|
|
(1)
|
|
Gain on sale of
mortgage servicing rights
|
—
|
|
—
|
|
8,305
|
|
—
|
|
—
|
|
Gain on sale of SBA
loans
|
388
|
|
301
|
|
832
|
|
279
|
|
—
|
|
Gain on sale of
loans
|
726
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Service charges and
fees
|
15,922
|
|
15,270
|
|
14,833
|
|
13,189
|
|
14,125
|
|
Trust and other
financial services income
|
6,884
|
|
7,085
|
|
6,866
|
|
6,449
|
|
6,642
|
|
Gain on real estate
owned, net
|
1,084
|
|
29
|
|
785
|
|
108
|
|
51
|
|
Income from bank-owned
life insurance
|
1,454
|
|
4,561
|
|
1,304
|
|
1,269
|
|
1,663
|
|
Mortgage banking
income
|
247
|
|
632
|
|
1,028
|
|
524
|
|
477
|
|
Other operating
income
|
2,465
|
|
3,010
|
|
4,150
|
|
2,151
|
|
4,901
|
|
Total noninterest
income
|
29,169
|
|
30,888
|
|
29,797
|
|
23,969
|
|
27,858
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
50,194
|
|
51,243
|
|
47,650
|
|
46,604
|
|
46,658
|
|
Premises and occupancy
costs
|
7,049
|
|
7,052
|
|
7,579
|
|
7,471
|
|
7,370
|
|
Office
operations
|
3,747
|
|
3,398
|
|
2,800
|
|
3,010
|
|
3,544
|
|
Collections
expense
|
328
|
|
551
|
|
429
|
|
387
|
|
563
|
|
Processing
expenses
|
15,017
|
|
14,672
|
|
14,648
|
|
14,350
|
|
13,585
|
|
Marketing
expenses
|
1,317
|
|
2,379
|
|
2,856
|
|
2,892
|
|
2,773
|
|
Federal deposit
insurance premiums
|
2,643
|
|
2,341
|
|
2,064
|
|
2,223
|
|
1,319
|
|
Professional
services
|
6,255
|
|
3,002
|
|
3,804
|
|
4,758
|
|
5,434
|
|
Amortization of
intangible assets
|
724
|
|
795
|
|
842
|
|
909
|
|
932
|
|
Real estate owned
expense
|
51
|
|
141
|
|
83
|
|
181
|
|
53
|
|
Merger, asset
disposition and restructuring expense
|
2,354
|
|
—
|
|
1,593
|
|
2,802
|
|
4,243
|
|
Other
expenses
|
997
|
|
1,996
|
|
1,510
|
|
1,863
|
|
2,304
|
|
Total noninterest
expense
|
90,676
|
|
87,570
|
|
85,858
|
|
87,450
|
|
88,778
|
|
Income before income
taxes
|
36,849
|
|
50,684
|
|
43,558
|
|
43,987
|
|
45,225
|
|
Income tax
expense
|
7,835
|
|
11,464
|
|
10,514
|
|
10,308
|
|
10,576
|
|
Net income
|
$ 29,014
|
|
39,220
|
|
33,044
|
|
33,679
|
|
34,649
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
0.23
|
|
0.31
|
|
0.26
|
|
0.27
|
|
0.27
|
|
Diluted earnings per
share
|
$
0.23
|
|
0.31
|
|
0.26
|
|
0.26
|
|
0.27
|
|
Annualized return on
average equity
|
7.64 %
|
|
10.27 %
|
|
8.72 %
|
|
9.11 %
|
|
9.38 %
|
|
Annualized return on
average assets
|
0.80 %
|
|
1.08 %
|
|
0.93 %
|
|
0.97 %
|
|
0.98 %
|
|
Annualized return on
tangible common equity *
|
9.88 %
|
|
14.00 %
|
|
11.79 %
|
|
12.15 %
|
|
12.48 %
|
|
Efficiency
ratio
|
66.93 %
|
|
62.88 %
|
|
62.06 %
|
|
64.10 %
|
|
61.27 %
|
|
Efficiency ratio,
excluding certain items (1) **
|
64.66 %
|
|
62.31 %
|
|
60.30 %
|
|
61.38 %
|
|
57.70 %
|
|
Annualized noninterest
expense to average assets
|
2.51 %
|
|
2.42 %
|
|
2.42 %
|
|
2.51 %
|
|
2.52 %
|
|
Annualized noninterest
expense to average assets, excluding certain items (1)
**
|
2.43 %
|
|
2.39 %
|
|
2.35 %
|
|
2.40 %
|
|
2.37 %
|
|
|
|
(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)
|
|
Year ended December
31,
|
|
2023
|
|
2022
|
|
Interest
income:
|
|
|
|
|
Loans
receivable
|
$
543,659
|
|
407,828
|
|
Mortgage-backed
securities
|
32,886
|
|
30,804
|
|
Taxable investment
securities
|
3,258
|
|
3,070
|
|
Tax-free investment
securities
|
2,350
|
|
2,767
|
|
FHLB stock
dividends
|
2,868
|
|
730
|
|
Interest-earning
deposits
|
2,901
|
|
3,599
|
|
Total interest
income
|
587,922
|
|
448,798
|
|
Interest
expense:
|
|
|
|
|
Deposits
|
105,343
|
|
14,120
|
|
Borrowed
funds
|
46,896
|
|
13,997
|
|
Total interest
expense
|
152,239
|
|
28,117
|
|
Net interest
income
|
435,683
|
|
420,681
|
|
Provision for credit
losses - loans
|
18,664
|
|
17,860
|
|
Provision for credit
losses - unfunded commitments (1)
|
4,210
|
|
10,453
|
|
Net interest income
after provision for credit losses
|
412,809
|
|
392,368
|
|
Noninterest
income:
|
|
|
|
|
Loss on sale of
investments
|
(8,307)
|
|
(8)
|
|
Gain on sale of
mortgage servicing rights
|
8,305
|
|
—
|
|
Gain on sale of SBA
loans
|
1,800
|
|
—
|
|
Gain on sale of
loans
|
726
|
|
—
|
|
Service charges and
fees
|
59,214
|
|
55,188
|
|
Trust and other
financial services income
|
27,284
|
|
27,765
|
|
Gain on real estate
owned, net
|
2,006
|
|
603
|
|
Income from bank-owned
life insurance
|
8,588
|
|
7,129
|
|
Mortgage banking
income
|
2,431
|
|
4,865
|
|
Other operating
income
|
11,776
|
|
15,307
|
|
Total noninterest
income
|
113,823
|
|
110,849
|
|
Noninterest
expense:
|
|
|
|
|
Compensation and
employee benefits
|
195,691
|
|
188,359
|
|
Premises and occupancy
costs
|
29,151
|
|
29,618
|
|
Office
operations
|
12,955
|
|
13,318
|
|
Collections
expense
|
1,695
|
|
1,808
|
|
Processing
expenses
|
58,687
|
|
52,496
|
|
Marketing
expenses
|
9,444
|
|
9,095
|
|
Federal deposit
insurance premiums
|
9,271
|
|
4,778
|
|
Professional
services
|
17,819
|
|
14,703
|
|
Amortization of
intangible assets
|
3,270
|
|
4,277
|
|
Real estate owned
expense
|
456
|
|
223
|
|
Merger, asset
disposition and restructuring expense
|
6,749
|
|
5,617
|
|
Other
expenses
|
6,366
|
|
5,233
|
|
Total noninterest
expense
|
351,554
|
|
329,525
|
|
Income before income
taxes
|
175,078
|
|
173,692
|
|
Income tax
expense
|
40,121
|
|
40,026
|
|
Net income
|
$
134,957
|
|
133,666
|
|
|
|
|
|
Basic earnings per
share
|
$
1.06
|
|
1.05
|
|
Diluted earnings per
share
|
$
1.06
|
|
1.05
|
|
|
|
|
|
Annualized return on
average equity
|
8.94 %
|
|
8.80 %
|
|
Annualized return on
average assets
|
0.95 %
|
|
0.94 %
|
|
Annualized return on
tangible common equity *
|
11.58 %
|
|
12.13 %
|
|
Efficiency
ratio
|
63.98 %
|
|
62.00 %
|
|
Efficiency ratio,
excluding certain items (1) **
|
62.15 %
|
|
60.13 %
|
|
Annualized noninterest
expense to average assets
|
2.46 %
|
|
2.32 %
|
|
Annualized noninterest
expense to average assets, excluding certain items (1)
**
|
2.39 %
|
|
2.25 %
|
|
|
|
(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
December 31,
|
|
Year ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Reconciliation of net
income to adjusted net operating income:
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
$
29,014
|
|
34,649
|
|
134,957
|
|
133,666
|
|
Non-GAAP
adjustments
|
|
|
|
|
|
|
|
|
Add: merger, asset
disposition and restructuring expense
|
2,354
|
|
4,243
|
|
6,749
|
|
5,617
|
|
Less: tax benefit of
merger, asset disposition and restructuring expense
|
(659)
|
|
(1,188)
|
|
(1,890)
|
|
(1,573)
|
|
Adjusted net operating
income (non-GAAP)
|
$
30,709
|
|
37,704
|
|
139,816
|
|
137,710
|
|
Diluted earnings per
share (GAAP)
|
$
0.23
|
|
0.27
|
|
1.06
|
|
1.05
|
|
Diluted adjusted
operating earnings per share (non-GAAP)
|
$
0.24
|
|
0.30
|
|
1.10
|
|
1.08
|
|
|
|
|
|
|
|
|
|
Average
equity
|
$
1,506,895
|
|
1,465,285
|
|
1,510,285
|
|
1,518,704
|
|
Average
assets
|
14,329,020
|
|
13,983,100
|
|
14,269,809
|
|
14,177,698
|
|
Annualized return on
average equity (GAAP)
|
7.64 %
|
|
9.38 %
|
|
8.94 %
|
|
8.80 %
|
|
Annualized return on
average assets (GAAP)
|
0.80 %
|
|
0.98 %
|
|
0.95 %
|
|
0.94 %
|
|
Annualized return on
average equity, excluding merger, asset disposition and
restructuring expense,
net of tax (non-GAAP)
|
8.09 %
|
|
10.21 %
|
|
9.26 %
|
|
9.07 %
|
|
Annualized return on
average assets, excluding merger, asset disposition and
restructuring expense,
net of tax (non-GAAP)
|
0.85 %
|
|
1.07 %
|
|
0.98 %
|
|
0.97 %
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
Tangible common
equity to assets
|
|
|
|
|
|
|
Total shareholders'
equity
|
$
1,551,317
|
|
1,498,431
|
|
1,491,486
|
|
Less: goodwill
and intangible assets
|
(386,287)
|
|
(387,010)
|
|
(389,557)
|
|
Tangible common
equity
|
$
1,165,030
|
|
1,111,421
|
|
1,101,929
|
|
|
|
|
|
|
|
Total assets
|
$ 14,419,105
|
|
14,362,201
|
|
14,113,324
|
|
Less: goodwill and
intangible assets
|
(386,287)
|
|
(387,010)
|
|
(389,557)
|
|
Tangible
assets
|
$ 14,032,818
|
|
13,975,191
|
|
13,723,767
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets
|
8.30 %
|
|
7.95 %
|
|
8.03 %
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets, including unrealized losses on
held-to-maturity
investments
|
|
|
|
|
|
|
Tangible common
equity
|
$
1,165,030
|
|
1,111,421
|
|
1,101,929
|
|
Less: unrealized
losses on held to maturity investments
|
(115,334)
|
|
(147,425)
|
|
(129,865)
|
|
Add: deferred taxes on
unrealized losses on held to maturity investments
|
32,294
|
|
41,279
|
|
36,362
|
|
Tangible common equity,
including unrealized losses on held-to-maturity
investments
|
$
1,081,990
|
|
1,005,275
|
|
1,008,426
|
|
|
|
|
|
|
|
Tangible
assets
|
14,032,818
|
|
13,975,191
|
|
13,723,767
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets, including unrealized losses on held-to-maturity
investments
|
7.71 %
|
|
7.19 %
|
|
7.35 %
|
|
|
|
|
|
|
|
Tangible book value
per share
|
|
|
|
|
|
|
Tangible common
equity
|
$
1,165,030
|
|
1,111,421
|
|
1,101,929
|
|
Common shares
outstanding
|
127,110,453
|
|
127,101,349
|
|
127,028,848
|
|
Tangible book value per
share
|
9.17
|
|
8.74
|
|
8.67
|
|
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
|
|
Year ended December
30,
|
|
|
|
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Annualized return on
tangible common equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
29,014
|
|
39,220
|
|
33,044
|
|
33,679
|
|
34,649
|
|
134,957
|
|
133,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
1,551,317
|
|
1,498,431
|
|
1,511,501
|
|
1,513,275
|
|
1,491,486
|
|
1,551,317
|
|
1,491,486
|
|
Less: goodwill and
intangible assets
|
(386,287)
|
|
(387,010)
|
|
(387,806)
|
|
(388,648)
|
|
(389,557)
|
|
(386,287)
|
|
(389,557)
|
|
Tangible common
equity
|
$
1,165,030
|
|
1,111,421
|
|
1,123,695
|
|
1,124,627
|
|
1,101,929
|
|
1,165,030
|
|
1,101,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
tangible common equity
|
9.88 %
|
|
14.00 %
|
|
11.79 %
|
|
12.15 %
|
|
12.48 %
|
|
11.58 %
|
|
12.13 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio,
excluding amortization and merger, asset disposition
and
restructuring
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
$
90,676
|
|
87,570
|
|
85,858
|
|
87,450
|
|
88,778
|
|
351,554
|
|
329,525
|
|
Less: amortization
expense
|
(724)
|
|
(795)
|
|
(842)
|
|
(909)
|
|
(932)
|
|
(3,270)
|
|
(4,277)
|
|
Less: merger, asset
disposition and restructuring expenses
|
(2,354)
|
|
—
|
|
(1,593)
|
|
(2,802)
|
|
(4,243)
|
|
(6,749)
|
|
(5,617)
|
|
Non-interest expense,
excluding amortization and merger, assets disposition
and
restructuring
expenses
|
$
87,598
|
|
86,775
|
|
83,423
|
|
83,739
|
|
83,603
|
|
341,535
|
|
319,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$ 106,302
|
|
108,368
|
|
108,549
|
|
112,464
|
|
117,044
|
|
435,683
|
|
420,681
|
|
Non-interest
income
|
29,169
|
|
30,888
|
|
29,797
|
|
23,969
|
|
27,858
|
|
113,823
|
|
110,849
|
|
Net interest income
plus non-interest income
|
$ 135,471
|
|
139,256
|
|
138,346
|
|
136,433
|
|
144,902
|
|
549,506
|
|
531,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio,
excluding amortization and merger, asset disposition and
restructuring expenses
|
64.66 %
|
|
62.31 %
|
|
60.30 %
|
|
61.38 %
|
|
57.70 %
|
|
62.15 %
|
|
60.13 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
87,598
|
|
86,775
|
|
83,423
|
|
83,739
|
|
83,603
|
|
341,535
|
|
319,631
|
|
Average
assets
|
14,329,020
|
|
14,379,323
|
|
14,245,917
|
|
14,121,496
|
|
13,983,100
|
|
14,269,809
|
|
14,177,698
|
|
Annualized non-interest
expense to average assets, excluding amortization and
merger,
asset disposition and
restructuring expense
|
2.43 %
|
|
2.39 %
|
|
2.35 %
|
|
2.40 %
|
|
2.37 %
|
|
2.39 %
|
|
2.25 %
|
|
|
|
*
|
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
December 31, 2023
|
|
Balance
|
|
Percent of
total deposits
|
|
Number
of
relationships
|
|
Uninsured deposits per
the Call Report (1)
|
$
2,810,966
|
|
23.46 %
|
|
4,924
|
|
Less intercompany
deposit accounts
|
976,113
|
|
8.15 %
|
|
12
|
|
Less collateralized
deposit accounts
|
432,443
|
|
3.61 %
|
|
239
|
|
Uninsured deposits
excluding intercompany and collateralized accounts
|
$
1,402,410
|
|
11.71 %
|
|
4,673
|
|
|
(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 $19.0 million, or 0.16% of
total
deposits, as of
December 31, 2023. Our top ten largest uninsured depositors,
excluding
intercompany and
collateralized deposit accounts, had an aggregate uninsured
deposit
balance of $105.8
million, or 0.88% of total deposits, as of December 31, 2023. The
average
uninsured deposit
account balance, excluding intercompany and collateralized
accounts,
was $300,000 as of
December 31, 2023.
|
|
|
The following table provides additional
details over the Company's deposit portfolio:
|
|
As of
December 31, 2023
|
|
Balance
|
|
Percent of
total deposits
|
|
Number of
accounts
|
|
Personal noninterest
bearing demand deposits
|
$
1,357,875
|
|
11.33 %
|
|
288,919
|
|
Business noninterest
bearing demand deposits
|
1,311,148
|
|
10.94
|
|
44,306
|
|
Personal
interest-bearing demand deposits
|
1,464,058
|
|
12.22
|
|
58,543
|
|
Business
interest-bearing demand deposits
|
1,170,488
|
|
9.77
|
|
7,953
|
|
Personal money market
deposits
|
1,435,939
|
|
11.99
|
|
25,556
|
|
Business money market
deposits
|
532,279
|
|
4.44
|
|
2,841
|
|
Savings
deposits
|
2,105,234
|
|
17.57
|
|
206,127
|
|
Time
deposits
|
2,602,881
|
|
21.74
|
|
74,330
|
|
Total
deposits
|
$
11,979,902
|
|
100.00 %
|
|
708,575
|
|
Our average deposit account balance as
of December 31, 2023 was $17,000. The Company's insured cash sweep
deposit balance was
$357.0 million as of
December 31, 2023.
|
|
|
The following table provides additional
details regarding the Company's deposit portfolio over
time:
|
|
6/30/2022
|
|
9/30/2022
|
|
12/31/2022
|
|
3/31/2023
|
|
6/30/2023
|
|
9/30/2023
|
|
12/31/2023
|
|
Personal noninterest
bearing demand deposits
|
1,388,690
|
|
1,413,781
|
|
1,412,227
|
|
1,428,232
|
|
1,397,167
|
|
1,375,144
|
|
1,357,875
|
|
Business noninterest
bearing demand deposits
|
1,669,559
|
|
1,680,339
|
|
1,581,016
|
|
1,467,860
|
|
1,423,396
|
|
1,399,147
|
|
1,311,148
|
|
Personal
interest-bearing demand deposits
|
1,785,761
|
|
1,742,173
|
|
1,718,806
|
|
1,627,546
|
|
1,535,254
|
|
1,477,617
|
|
1,464,058
|
|
Business
interest-bearing demand deposits
|
529,357
|
|
498,937
|
|
499,059
|
|
466,105
|
|
624,252
|
|
689,914
|
|
812,433
|
|
Municipal demand
deposits
|
543,573
|
|
571,620
|
|
468,566
|
|
447,852
|
|
418,147
|
|
430,549
|
|
358,055
|
|
Personal money market
deposits
|
1,994,907
|
|
1,949,379
|
|
1,832,583
|
|
1,626,614
|
|
1,511,652
|
|
1,463,689
|
|
1,435,939
|
|
Business money market
deposits
|
636,805
|
|
627,634
|
|
624,986
|
|
701,436
|
|
642,601
|
|
579,124
|
|
532,279
|
|
Savings
deposits
|
2,362,725
|
|
2,327,419
|
|
2,275,020
|
|
2,194,743
|
|
2,120,215
|
|
2,116,360
|
|
2,105,234
|
|
Time
deposits
|
1,155,878
|
|
1,067,110
|
|
1,052,285
|
|
1,576,791
|
|
1,989,711
|
|
2,258,338
|
|
2,602,881
|
|
Total
deposits
|
12,067,255
|
|
11,878,392
|
|
11,464,548
|
|
11,537,179
|
|
11,662,395
|
|
11,789,882
|
|
11,979,902
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Regulatory Capital
Requirements (Unaudited)
(dollars in
thousands)
|
|
At December 31,
2023
|
|
Actual
|
|
Minimum capital
requirements
(1)
|
|
Well capitalized
requirements
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Total capital (to risk
weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc.
|
$ 1,799,883
|
|
16.040 %
|
|
$ 1,178,234
|
|
10.500 %
|
|
$ 1,122,128
|
|
10.000 %
|
|
Northwest
Bank
|
1,520,736
|
|
13.564 %
|
|
1,177,257
|
|
10.500 %
|
|
1,121,197
|
|
10.000 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital (to risk
weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc.
|
1,553,766
|
|
13.847 %
|
|
953,809
|
|
8.500 %
|
|
897,702
|
|
8.000 %
|
|
Northwest
Bank
|
1,388,808
|
|
12.387 %
|
|
953,018
|
|
8.500 %
|
|
896,958
|
|
8.000 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc.
|
1,428,181
|
|
12.727 %
|
|
785,489
|
|
7.000 %
|
|
729,383
|
|
6.500 %
|
|
Northwest
Bank
|
1,388,808
|
|
12.387 %
|
|
784,838
|
|
7.000 %
|
|
728,778
|
|
6.500 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital
(leverage) (to average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc.
|
1,553,766
|
|
10.841 %
|
|
573,290
|
|
4.000 %
|
|
716,612
|
|
5.000 %
|
|
Northwest
Bank
|
1,388,808
|
|
9.697 %
|
|
572,903
|
|
4.000 %
|
|
716,128
|
|
5.000 %
|
|
|
|
(1)
|
Amounts and ratios
include the capital conservation buffer of 2.5%, which does not
apply to Tier 1 capital to average assets (leverage ratio). For
further information related to the capital conservation buffer, see
"Item 1. Business - Supervision and Regulation" of our 2020 Annual
Report on Form 10-K.
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Marketable
Securities (Unaudited)
(dollars in
thousands)
|
|
|
December 31,
2023
|
|
Marketable securities
available-for-sale
|
|
Amortized
cost
|
|
Gross
unrealized
holding
gains
|
|
Gross
unrealized
holding
losses
|
|
Fair
value
|
|
Weighted
average
duration
|
|
Debt
issued by the U.S. government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
Due after one year
through five years
|
|
$
20,000
|
|
—
|
|
(1,135)
|
|
18,865
|
|
2.90
|
|
Due after ten
years
|
|
49,383
|
|
—
|
|
(9,934)
|
|
39,449
|
|
6.15
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
issued by government sponsored enterprises:
|
|
|
|
|
|
|
|
|
|
|
|
Due after
one year through five years
|
|
45,986
|
|
—
|
|
(5,763)
|
|
40,223
|
|
4.34
|
|
Due after
five years through ten years
|
|
386
|
|
—
|
|
(12)
|
|
374
|
|
1.84
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
securities:
|
|
|
|
|
|
|
|
|
|
|
|
Due after one year
through five years
|
|
4,279
|
|
22
|
|
(427)
|
|
3,874
|
|
3.99
|
|
Due after
five years through ten years
|
|
20,725
|
|
—
|
|
(1,437)
|
|
19,288
|
|
7.10
|
|
Due after
ten years
|
|
60,762
|
|
125
|
|
(8,580)
|
|
52,307
|
|
10.30
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
debt issues:
|
|
|
|
|
|
|
|
|
|
|
|
Due after
five years through ten years
|
|
8,466
|
|
—
|
|
(778)
|
|
7,688
|
|
5.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed agency securities:
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
rate pass-through
|
|
209,069
|
|
27
|
|
(25,222)
|
|
183,874
|
|
6.49
|
|
Variable
rate pass-through
|
|
7,140
|
|
11
|
|
(71)
|
|
7,080
|
|
4.50
|
|
Fixed
rate agency CMOs
|
|
789,842
|
|
—
|
|
(143,055)
|
|
646,787
|
|
5.20
|
|
Variable
rate agency CMOs
|
|
23,965
|
|
38
|
|
(453)
|
|
23,550
|
|
3.57
|
|
Total
residential mortgage-backed agency securities
|
|
1,030,016
|
|
76
|
|
(168,801)
|
|
861,291
|
|
5.42
|
|
Total
marketable securities available-for-sale
|
|
$
1,240,003
|
|
223
|
|
(196,867)
|
|
1,043,359
|
|
5.63
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities
held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
Government
sponsored
|
|
|
|
|
|
|
|
|
|
|
|
Due after one year
through five years
|
|
$
69,471
|
|
—
|
|
(8,100)
|
|
61,371
|
|
3.90
|
|
Due after five years
through ten years
|
|
54,987
|
|
—
|
|
(8,700)
|
|
46,287
|
|
5.33
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed agency securities:
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
rate pass-through
|
|
147,874
|
|
—
|
|
(20,834)
|
|
127,040
|
|
5.26
|
|
Variable
rate pass-through
|
|
449
|
|
1
|
|
—
|
|
450
|
|
4.47
|
|
Fixed
rate agency CMOs
|
|
541,529
|
|
—
|
|
(77,694)
|
|
463,835
|
|
6.28
|
|
Variable
rate agency CMOs
|
|
529
|
|
—
|
|
(6)
|
|
523
|
|
5.33
|
|
Total
residential mortgage-backed agency securities
|
|
690,381
|
|
1
|
|
(98,534)
|
|
591,848
|
|
6.06
|
|
Total
marketable securities held-to-maturity
|
|
$
814,839
|
|
1
|
|
(115,334)
|
|
699,506
|
|
5.83
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Borrowed Funds
(Unaudited)
(dollars in
thousands)
|
|
December 31,
2023
|
|
Amount
|
|
Average
rate
|
|
Term notes payable to
the FHLB of Pittsburgh, due within one year
|
$
175,000
|
|
5.71 %
|
|
Notes payable to the
FHLB of Pittsburgh, due within one year
|
163,500
|
|
5.70 %
|
|
Total term notes
payable to the FHLB
|
338,500
|
|
5.70 %
|
|
|
|
|
|
Collateralized
borrowings, due within one year
|
35,495
|
|
1.72 %
|
|
Collateral received,
due within one year
|
24,900
|
|
5.26 %
|
|
Subordinated
debentures, net of issuance costs
|
114,189
|
|
4.28 %
|
|
Junior subordinated
debentures
|
129,574
|
|
7.88 %
|
|
Total borrowed funds
*
|
$
642,658
|
|
5.65 %
|
|
|
|
*
|
As of December 31,
2023, the Company had $3.3 billion of additional borrowing capacity
available with the FHLB of Pittsburgh, including a $250.0
million overnight line of credit, which had a $163.5 million drawn
balance, as well as $297.5 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 December
31, 2023:
|
|
|
December 31,
2023
|
|
Property
type
|
|
Percent of
portfolio
|
|
5 or More Unit
Dwelling
|
|
14.5 %
|
|
Nursing Home
|
|
12.8
|
|
Retail
Building
|
|
12.0
|
|
Commercial Office
Building - non-owner occupied
|
|
9.3
|
|
Residential acquisition
& development - 1-4 family, townhouses and
apartments
|
|
4.8
|
|
Manufacturing &
Industrial Building
|
|
4.8
|
|
Multi-use building -
commercial, retail and residential
|
|
4.4
|
|
Warehouse/Storage
Building
|
|
3.9
|
|
Commercial office
building - owner
occupied
|
|
3.3
|
|
Multi-use building -
office and warehouse
|
|
3.3
|
|
Single Family
Dwelling
|
|
2.7
|
|
Other Medical
Facility
|
|
2.5
|
|
Student
Housing
|
|
2.2
|
|
Hotel/Motel
|
|
2.1
|
|
2-4 Family
|
|
2.1
|
|
Agricultural Real
Estate
|
|
2.1
|
|
All Other
Types
|
|
13.2
|
|
Total
|
|
100.0 %
|
|
The following table describes our
commercial real estate portfolio by state at December 31,
2023:
|
|
|
December 31,
2023
|
|
State
|
|
Percent of
portfolio
|
|
New York
|
|
32.4 %
|
|
Pennsylvania
|
|
30.9
|
|
Ohio
|
|
20.0
|
|
Indiana
|
|
7.9
|
|
All other
|
|
8.8
|
|
Total
|
|
100.0 %
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Asset Quality
(Unaudited)
(dollars in
thousands)
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
Nonaccrual loans
current:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
959
|
|
1,951
|
|
1,559
|
|
1,423
|
|
1,496
|
|
Home equity
loans
|
871
|
|
947
|
|
1,089
|
|
1,084
|
|
1,418
|
|
Consumer
loans
|
1,051
|
|
1,049
|
|
1,009
|
|
911
|
|
836
|
|
Commercial real estate
loans
|
64,603
|
|
44,639
|
|
48,468
|
|
50,045
|
|
53,303
|
|
Commercial
loans
|
1,182
|
|
1,369
|
|
995
|
|
1,468
|
|
895
|
|
Total nonaccrual loans
current
|
$
68,666
|
|
49,955
|
|
53,120
|
|
54,931
|
|
57,948
|
|
Nonaccrual loans
delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
933
|
|
48
|
|
49
|
|
688
|
|
473
|
|
Home equity
loans
|
174
|
|
92
|
|
37
|
|
18
|
|
180
|
|
Consumer
loans
|
225
|
|
274
|
|
309
|
|
223
|
|
178
|
|
Commercial real estate
loans
|
51
|
|
1,913
|
|
1,697
|
|
1,900
|
|
1,220
|
|
Commercial
loans
|
139
|
|
90
|
|
855
|
|
341
|
|
145
|
|
Total nonaccrual loans
delinquent 30 days to 59 days
|
$
1,522
|
|
2,417
|
|
2,947
|
|
3,170
|
|
2,196
|
|
Nonaccrual loans
delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
511
|
|
66
|
|
185
|
|
919
|
|
31
|
|
Home equity
loans
|
347
|
|
319
|
|
363
|
|
338
|
|
290
|
|
Consumer
loans
|
557
|
|
312
|
|
360
|
|
340
|
|
341
|
|
Commercial real estate
loans
|
831
|
|
212
|
|
210
|
|
1,355
|
|
473
|
|
Commercial
loans
|
56
|
|
291
|
|
245
|
|
126
|
|
96
|
|
Total nonaccrual loans
delinquent 60 days to 89 days
|
$
2,302
|
|
1,200
|
|
1,363
|
|
3,078
|
|
1,231
|
|
Nonaccrual loans
delinquent 90 days or more:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
6,324
|
|
7,695
|
|
6,290
|
|
3,300
|
|
5,574
|
|
Home equity
loans
|
3,100
|
|
2,073
|
|
1,965
|
|
2,190
|
|
2,257
|
|
Consumer
loans
|
3,212
|
|
2,463
|
|
2,033
|
|
2,791
|
|
2,672
|
|
Commercial real estate
loans
|
6,488
|
|
8,416
|
|
8,575
|
|
8,010
|
|
7,867
|
|
Commercial
loans
|
2,770
|
|
2,435
|
|
2,296
|
|
1,139
|
|
1,491
|
|
Total nonaccrual loans
delinquent 90 days or more
|
$
21,894
|
|
23,082
|
|
21,159
|
|
17,430
|
|
19,861
|
|
Total nonaccrual
loans
|
$
94,384
|
|
76,654
|
|
78,589
|
|
78,609
|
|
81,236
|
|
Total nonaccrual
loans
|
$
94,384
|
|
76,654
|
|
78,589
|
|
78,609
|
|
81,236
|
|
Loans 90 days past due
and still accruing
|
2,698
|
|
728
|
|
532
|
|
652
|
|
744
|
|
Nonperforming
loans
|
97,082
|
|
77,382
|
|
79,121
|
|
79,261
|
|
81,980
|
|
Real estate owned,
net
|
104
|
|
363
|
|
371
|
|
524
|
|
413
|
|
Nonperforming
assets
|
$
97,186
|
|
77,745
|
|
79,492
|
|
79,785
|
|
82,393
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to
total loans
|
0.85 %
|
|
0.68 %
|
|
0.70 %
|
|
0.71 %
|
|
0.75 %
|
|
Nonperforming assets to
total assets
|
0.67 %
|
|
0.54 %
|
|
0.56 %
|
|
0.56 %
|
|
0.58 %
|
|
Allowance for credit
losses to total loans
|
1.10 %
|
|
1.10 %
|
|
1.10 %
|
|
1.09 %
|
|
1.08 %
|
|
Allowance for credit
losses to nonperforming loans
|
129.01 %
|
|
161.33 %
|
|
157.26 %
|
|
152.98 %
|
|
143.98 %
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Loans by Credit
Quality Indicators (Unaudited)
(dollars in
thousands)
|
|
At December 31,
2023
|
|
Pass
|
|
Special
mention
*
|
|
Substandard
**
|
|
Doubtful
|
|
Loss
|
|
Loans
receivable
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
3,413,846
|
|
—
|
|
14,339
|
|
—
|
|
—
|
|
3,428,185
|
|
Home equity
loans
|
|
1,223,097
|
|
—
|
|
4,761
|
|
—
|
|
—
|
|
1,227,858
|
|
Consumer
loans
|
|
2,120,216
|
|
—
|
|
5,811
|
|
—
|
|
—
|
|
2,126,027
|
|
Total Personal
Banking
|
|
6,757,159
|
|
—
|
|
24,911
|
|
—
|
|
—
|
|
6,782,070
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,670,510
|
|
124,116
|
|
179,384
|
|
—
|
|
—
|
|
2,974,010
|
|
Commercial
loans
|
|
1,637,879
|
|
6,678
|
|
14,172
|
|
—
|
|
—
|
|
1,658,729
|
|
Total Commercial
Banking
|
|
4,308,389
|
|
130,794
|
|
193,556
|
|
—
|
|
—
|
|
4,632,739
|
|
Total loans
|
|
$ 11,065,548
|
|
130,794
|
|
218,467
|
|
—
|
|
—
|
|
11,414,809
|
|
At September 30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
*
|
Includes $7.8 million,
$6.9 million, $4.9 million, $7.4 million, and $7.4 million of
acquired loans at December 31, 2023, September 30, 2023, June 30,
2023, March 31, 2023, and December 31, 2022,
respectively.
|
|
**
|
Includes $20.3 million,
$28.9 million, $31.2 million, $31.9 million, and $39.1 million of
acquired loans at December 31, 2023, September 30, 2023, June 30,
2023, March 31, 2023, and December 31, 2022,
respectively.
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Loan Delinquency
(Unaudited)
(dollars in
thousands)
|
|
December 31,
2023
|
|
*
|
|
September
30,
2023
|
|
*
|
|
June 30,
2023
|
|
*
|
|
March 31,
2023
|
|
*
|
|
December 31,
2022
|
|
*
|
|
(Number of loans and
dollar amount of loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 30
days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
307
|
|
$
30,041
|
|
0.9 %
|
|
6
|
|
$ 573
|
|
— %
|
|
14
|
|
$ 627
|
|
— %
|
|
259
|
|
$
26,992
|
|
0.8 %
|
|
304
|
|
$
29,487
|
|
0.8 %
|
|
Home equity
loans
|
121
|
|
5,761
|
|
0.5 %
|
|
112
|
|
4,707
|
|
0.4 %
|
|
92
|
|
3,395
|
|
0.3 %
|
|
111
|
|
4,235
|
|
0.3 %
|
|
145
|
|
6,657
|
|
0.5 %
|
|
Consumer
loans
|
896
|
|
11,211
|
|
0.5 %
|
|
733
|
|
9,874
|
|
0.5 %
|
|
602
|
|
7,955
|
|
0.4 %
|
|
587
|
|
6,930
|
|
0.3 %
|
|
737
|
|
9,435
|
|
0.4 %
|
|
Commercial real estate
loans
|
23
|
|
3,204
|
|
0.1 %
|
|
22
|
|
3,411
|
|
0.1 %
|
|
13
|
|
2,710
|
|
0.1 %
|
|
23
|
|
4,834
|
|
0.2 %
|
|
29
|
|
4,008
|
|
0.1 %
|
|
Commercial
loans
|
59
|
|
4,196
|
|
0.3 %
|
|
52
|
|
2,847
|
|
0.2 %
|
|
38
|
|
15,658
|
|
1.1 %
|
|
46
|
|
4,253
|
|
0.3 %
|
|
51
|
|
2,648
|
|
0.2 %
|
|
Total loans delinquent
30 days to 59 days
|
1,406
|
|
$
54,413
|
|
0.5 %
|
|
925
|
|
$
21,412
|
|
0.2 %
|
|
759
|
|
$
30,345
|
|
0.3 %
|
|
1,026
|
|
$
47,244
|
|
0.4 %
|
|
1,266
|
|
$
52,235
|
|
0.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60
days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
69
|
|
$
7,796
|
|
0.2 %
|
|
56
|
|
$
5,395
|
|
0.2 %
|
|
52
|
|
$
3,521
|
|
0.1 %
|
|
23
|
|
$
1,922
|
|
0.1 %
|
|
65
|
|
$
5,563
|
|
0.2 %
|
|
Home equity
loans
|
37
|
|
982
|
|
0.1 %
|
|
40
|
|
1,341
|
|
0.1 %
|
|
31
|
|
1,614
|
|
0.1 %
|
|
31
|
|
1,061
|
|
0.1 %
|
|
29
|
|
975
|
|
0.1 %
|
|
Consumer
loans
|
322
|
|
3,754
|
|
0.2 %
|
|
236
|
|
2,707
|
|
0.1 %
|
|
250
|
|
2,584
|
|
0.1 %
|
|
185
|
|
2,083
|
|
0.1 %
|
|
255
|
|
3,070
|
|
0.1 %
|
|
Commercial real estate
loans
|
9
|
|
1,031
|
|
— %
|
|
13
|
|
1,588
|
|
0.1 %
|
|
12
|
|
1,288
|
|
— %
|
|
17
|
|
1,949
|
|
0.1 %
|
|
16
|
|
2,377
|
|
0.1 %
|
|
Commercial
loans
|
16
|
|
703
|
|
— %
|
|
15
|
|
981
|
|
0.1 %
|
|
23
|
|
11,092
|
|
0.8 %
|
|
19
|
|
1,088
|
|
0.1 %
|
|
24
|
|
1,115
|
|
0.1 %
|
|
Total loans delinquent
60 days to 89 days
|
453
|
|
$
14,266
|
|
0.1 %
|
|
360
|
|
$
12,012
|
|
0.1 %
|
|
368
|
|
$
20,099
|
|
0.2 %
|
|
275
|
|
$
8,103
|
|
0.1 %
|
|
389
|
|
$
13,100
|
|
0.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90
days or more: **
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
70
|
|
$
7,995
|
|
0.2 %
|
|
79
|
|
$
7,695
|
|
0.2 %
|
|
63
|
|
$
6,290
|
|
0.2 %
|
|
39
|
|
$
3,300
|
|
0.1 %
|
|
65
|
|
$
5,574
|
|
0.2 %
|
|
Home equity
loans
|
81
|
|
3,126
|
|
0.3 %
|
|
73
|
|
2,206
|
|
0.2 %
|
|
68
|
|
1,965
|
|
0.2 %
|
|
65
|
|
2,190
|
|
0.2 %
|
|
68
|
|
2,257
|
|
0.2 %
|
|
Consumer
loans
|
440
|
|
3,978
|
|
0.2 %
|
|
357
|
|
3,020
|
|
0.1 %
|
|
314
|
|
2,447
|
|
0.1 %
|
|
313
|
|
3,279
|
|
0.1 %
|
|
334
|
|
3,079
|
|
0.1 %
|
|
Commercial real estate
loans
|
27
|
|
6,712
|
|
0.2 %
|
|
27
|
|
8,416
|
|
0.3 %
|
|
20
|
|
8,575
|
|
0.3 %
|
|
18
|
|
8,010
|
|
0.3 %
|
|
19
|
|
7,867
|
|
0.3 %
|
|
Commercial
loans
|
53
|
|
2,780
|
|
0.2 %
|
|
39
|
|
2,472
|
|
0.2 %
|
|
38
|
|
2,414
|
|
0.2 %
|
|
24
|
|
1,302
|
|
0.1 %
|
|
15
|
|
1,829
|
|
0.2 %
|
|
Total loans delinquent
90 days or more
|
671
|
|
$
24,591
|
|
0.2 %
|
|
575
|
|
$
23,809
|
|
0.2 %
|
|
503
|
|
$
21,691
|
|
0.2 %
|
|
459
|
|
$
18,081
|
|
0.2 %
|
|
501
|
|
$
20,606
|
|
0.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
delinquent
|
2,530
|
|
$
93,270
|
|
0.8 %
|
|
1,860
|
|
$
57,233
|
|
0.5 %
|
|
1,630
|
|
$
72,135
|
|
0.6 %
|
|
1,760
|
|
$
73,428
|
|
0.7 %
|
|
2,156
|
|
$
85,941
|
|
0.8 %
|
|
|
|
*
|
Represents delinquency,
in dollars, divided by the respective total amount of that type of
loan outstanding.
|
|
**
|
Includes purchased
credit deteriorated loans of $646,000, $1.4 million, $605,000,
$331,000, and $1.7 million at December 31, 2023, September 30,
2023, June 30, 2023, March 31, 2023, and December 31, 2022,
respectively.
|
|
Northwest
Bancshares, Inc. and Subsidiaries
Allowance for Credit
Losses (Unaudited)
(dollars in
thousands)
|
|
Quarter ended
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
Beginning
balance
|
$ 124,841
|
|
124,423
|
|
121,257
|
|
118,036
|
|
109,819
|
|
ASU 2022-02
Adoption
|
—
|
|
—
|
|
—
|
|
426
|
|
—
|
|
Provision
|
3,801
|
|
3,983
|
|
6,010
|
|
4,870
|
|
9,023
|
|
Charge-offs residential
mortgage
|
(266)
|
|
(171)
|
|
(545)
|
|
(207)
|
|
(546)
|
|
Charge-offs home
equity
|
(133)
|
|
(320)
|
|
(235)
|
|
(164)
|
|
(232)
|
|
Charge-offs
consumer
|
(3,860)
|
|
(3,085)
|
|
(2,772)
|
|
(2,734)
|
|
(2,430)
|
|
Charge-offs commercial
real estate
|
(742)
|
|
(484)
|
|
(483)
|
|
(657)
|
|
(621)
|
|
Charge-offs
commercial
|
(806)
|
|
(1,286)
|
|
(1,209)
|
|
(865)
|
|
(404)
|
|
Recoveries
|
2,408
|
|
1,781
|
|
2,400
|
|
2,552
|
|
3,427
|
|
Ending
balance
|
$ 125,243
|
|
124,841
|
|
124,423
|
|
121,257
|
|
118,036
|
|
Net charge-offs to
average loans, annualized
|
0.12 %
|
|
0.13 %
|
|
0.10 %
|
|
0.08 %
|
|
0.03 %
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December
31,
|
|
2023
|
|
2022
|
|
Beginning
balance
|
$
118,036
|
|
102,241
|
|
ASU 2022-02
Adoption
|
426
|
|
—
|
|
Provision
|
18,664
|
|
17,860
|
|
Charge-offs residential
mortgage
|
(1,189)
|
|
(2,033)
|
|
Charge-offs home
equity
|
(852)
|
|
(1,469)
|
|
Charge-offs
consumer
|
(12,451)
|
|
(8,406)
|
|
Charge-offs commercial
real estate
|
(2,366)
|
|
(7,366)
|
|
Charge-offs
commercial
|
(4,166)
|
|
(1,657)
|
|
Recoveries
|
9,141
|
|
18,866
|
|
Ending
balance
|
$
125,243
|
|
118,036
|
|
Net charge-offs to
average loans, annualized
|
0.11 %
|
|
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
|
|
|
December 31,
2023
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost
(h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
3,442,308
|
|
32,739
|
|
3.80 %
|
|
$
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 %
|
|
Home equity
loans
|
|
1,238,420
|
|
17,590
|
|
5.64 %
|
|
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 %
|
|
Consumer
loans
|
|
2,055,783
|
|
24,667
|
|
4.76 %
|
|
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 %
|
|
Commercial real estate
loans
|
|
2,950,589
|
|
43,337
|
|
5.83 %
|
|
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 %
|
|
Commercial
loans
|
|
1,564,617
|
|
28,801
|
|
7.30 %
|
|
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 %
|
|
Total loans receivable
(a) (b) (d)
|
|
11,251,717
|
|
147,134
|
|
5.19 %
|
|
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 %
|
|
Mortgage-backed
securities (c)
|
|
1,741,687
|
|
7,951
|
|
1.83 %
|
|
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 %
|
|
Investment securities
(c) (d)
|
|
335,121
|
|
1,425
|
|
1.70 %
|
|
336,125
|
|
1,431
|
|
1.70 %
|
|
374,560
|
|
1,715
|
|
1.83 %
|
|
384,717
|
|
1,761
|
|
1.83 %
|
|
386,468
|
|
1,753
|
|
1.81 %
|
|
FHLB stock, at
cost
|
|
35,082
|
|
665
|
|
7.52 %
|
|
37,722
|
|
668
|
|
7.03 %
|
|
45,505
|
|
844
|
|
7.44 %
|
|
39,631
|
|
690
|
|
7.06 %
|
|
26,827
|
|
419
|
|
6.19 %
|
|
Other interest-earning
deposits
|
|
62,027
|
|
970
|
|
6.20 %
|
|
59,433
|
|
915
|
|
6.11 %
|
|
38,912
|
|
594
|
|
6.12 %
|
|
30,774
|
|
423
|
|
5.50 %
|
|
9,990
|
|
153
|
|
5.99 %
|
|
Total interest-earning
assets
|
|
13,425,634
|
|
158,145
|
|
4.67 %
|
|
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 %
|
|
Noninterest-earning
assets (e)
|
|
903,386
|
|
|
|
|
|
974,074
|
|
|
|
|
|
861,853
|
|
|
|
|
|
869,566
|
|
|
|
|
|
877,121
|
|
|
|
|
|
Total assets
|
|
$
14,329,020
|
|
|
|
|
|
$
14,379,323
|
|
|
|
|
|
$
14,245,917
|
|
|
|
|
|
$
14,121,496
|
|
|
|
|
|
$
13,983,100
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits
(g)
|
|
$
2,102,320
|
|
4,045
|
|
0.76 %
|
|
$
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 %
|
|
Interest-bearing
demand deposits (g)
|
|
2,573,634
|
|
4,921
|
|
0.76 %
|
|
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 %
|
|
Money market deposit
accounts (g)
|
|
1,997,116
|
|
7,446
|
|
1.48 %
|
|
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 %
|
|
Time deposits
(g)
|
|
2,447,335
|
|
24,187
|
|
3.92 %
|
|
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 %
|
|
Borrowed funds
(f)
|
|
548,089
|
|
6,826
|
|
4.94 %
|
|
643,518
|
|
7,937
|
|
4.89 %
|
|
837,358
|
|
10,202
|
|
4.89 %
|
|
740,218
|
|
7,938
|
|
4.35 %
|
|
451,369
|
|
3,967
|
|
3.49 %
|
|
Subordinated
debt
|
|
114,134
|
|
1,148
|
|
4.02 %
|
|
114,045
|
|
1,148
|
|
4.03 %
|
|
113,958
|
|
1,148
|
|
4.03 %
|
|
113,870
|
|
1,148
|
|
4.03 %
|
|
113,783
|
|
1,148
|
|
4.04 %
|
|
Junior subordinated
debentures
|
|
129,532
|
|
2,512
|
|
7.59 %
|
|
129,466
|
|
2,456
|
|
7.42 %
|
|
129,401
|
|
2,280
|
|
6.97 %
|
|
129,335
|
|
2,152
|
|
6.66 %
|
|
129,271
|
|
1,823
|
|
5.52 %
|
|
Total interest-bearing
liabilities
|
|
9,912,160
|
|
51,085
|
|
2.04 %
|
|
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 %
|
|
Noninterest-bearing
demand deposits (g)
|
|
2,675,788
|
|
|
|
|
|
2,757,091
|
|
|
|
|
|
2,820,928
|
|
|
|
|
|
2,889,973
|
|
|
|
|
|
3,039,000
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
|
234,177
|
|
|
|
|
|
257,141
|
|
|
|
|
|
224,508
|
|
|
|
|
|
235,213
|
|
|
|
|
|
229,794
|
|
|
|
|
|
Total
liabilities
|
|
12,822,125
|
|
|
|
|
|
12,864,036
|
|
|
|
|
|
12,725,927
|
|
|
|
|
|
12,622,671
|
|
|
|
|
|
12,517,815
|
|
|
|
|
|
Shareholders'
equity
|
|
1,506,895
|
|
|
|
|
|
1,515,287
|
|
|
|
|
|
1,519,990
|
|
|
|
|
|
1,498,825
|
|
|
|
|
|
1,465,285
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
14,329,020
|
|
|
|
|
|
$
14,379,323
|
|
|
|
|
|
$
14,245,917
|
|
|
|
|
|
$
14,121,496
|
|
|
|
|
|
$
13,983,100
|
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
|
107,060
|
|
2.63 %
|
|
|
|
109,258
|
|
2.77 %
|
|
|
|
109,375
|
|
2.87 %
|
|
|
|
113,256
|
|
3.19 %
|
|
|
|
117,809
|
|
3.43 %
|
|
Net interest-earning
assets/Net interest margin
|
|
$
3,513,474
|
|
|
|
3.16 %
|
|
$
3,555,445
|
|
|
|
3.23 %
|
|
$
3,703,573
|
|
|
|
3.28 %
|
|
$
3,754,445
|
|
|
|
3.47 %
|
|
$
3,856,958
|
|
|
|
3.57 %
|
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
|
1.35X
|
|
|
|
|
|
1.36X
|
|
|
|
|
|
1.38X
|
|
|
|
|
|
1.40X
|
|
|
|
|
|
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 1.37%, 1.07%, 0.77%, 0.40%, and 0.13%, respectively
and average cost of Interest-bearing deposits were 1.77%, 1.40%,
1.02%, 0.54%, and 0.18%, respectively.
|
|
(h)
|
Shown on a FTE
basis. GAAP basis yields for the periods indicated were: Loans —
5.17%, 4.99%, 4.81%, 4.61%, and 4.33%, respectively, Investment
securities — 1.52%, 1.52%, 1.61%, 1.61%, and 1.59%, respectively,
Interest-earning assets — 4.65%, 4.49%, 4.32%, 4.13%, and 3.87%,
respectively. GAAP basis net interest rate spreads were 2.61%,
2.75%, 2.85%, 3.17%, and 3.41%, respectively, and GAAP basis net
interest margins were 3.14%, 3.21%, 3.25%, 3.44%, and 3.54%,
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.
|
|
Year ended December
31,
|
|
2023
|
|
2022
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$ 3,474,336
|
|
129,828
|
|
3.74 %
|
|
$ 3,232,487
|
|
113,256
|
|
3.50 %
|
|
Home equity
loans
|
1,264,941
|
|
68,058
|
|
5.38 %
|
|
1,282,218
|
|
52,707
|
|
4.11 %
|
|
Consumer
loans
|
2,103,602
|
|
91,645
|
|
4.36 %
|
|
1,933,557
|
|
67,296
|
|
3.48 %
|
|
Commercial real estate
loans
|
2,881,005
|
|
160,352
|
|
5.57 %
|
|
2,894,508
|
|
131,230
|
|
4.47 %
|
|
Commercial
loans
|
1,376,234
|
|
96,253
|
|
6.99 %
|
|
976,128
|
|
45,293
|
|
4.58 %
|
|
Loans receivable
(a) (b) (d)
|
11,100,118
|
|
546,136
|
|
4.92 %
|
|
10,318,898
|
|
409,782
|
|
3.97 %
|
|
Mortgage-backed
securities (c)
|
1,822,375
|
|
32,886
|
|
1.80 %
|
|
1,968,528
|
|
30,804
|
|
1.56 %
|
|
Investment securities
(c) (d)
|
357,436
|
|
6,312
|
|
1.77 %
|
|
381,518
|
|
6,671
|
|
1.75 %
|
|
FHLB stock, at
cost
|
39,467
|
|
2,868
|
|
7.27 %
|
|
17,065
|
|
730
|
|
4.27 %
|
|
Other interest-earning
deposits
|
47,787
|
|
2,901
|
|
6.07 %
|
|
567,609
|
|
3,599
|
|
0.63 %
|
|
Total interest-earning
assets
|
13,367,183
|
|
591,103
|
|
4.42 %
|
|
13,253,618
|
|
451,586
|
|
3.41 %
|
|
Noninterest-earning
assets (e)
|
902,626
|
|
|
|
|
|
924,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
14,269,809
|
|
|
|
|
|
$
14,177,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits
(g)
|
$ 2,148,127
|
|
8,822
|
|
0.41 %
|
|
$ 2,336,217
|
|
2,343
|
|
0.10 %
|
|
Interest-bearing
demand deposits (g)
|
2,556,281
|
|
11,606
|
|
0.45 %
|
|
2,810,889
|
|
1,517
|
|
0.05 %
|
|
Money market deposit
accounts (g)
|
2,183,583
|
|
24,734
|
|
1.13 %
|
|
2,613,422
|
|
3,377
|
|
0.13 %
|
|
Time deposits
(g)
|
1,913,372
|
|
60,181
|
|
3.15 %
|
|
1,161,432
|
|
6,883
|
|
0.59 %
|
|
Borrowed funds
(f)
|
691,636
|
|
32,903
|
|
4.76 %
|
|
212,026
|
|
4,531
|
|
2.14 %
|
|
Subordinated
debt
|
114,002
|
|
4,592
|
|
4.03 %
|
|
117,625
|
|
4,750
|
|
4.04 %
|
|
Junior subordinated
debentures
|
129,434
|
|
9,401
|
|
7.26 %
|
|
129,175
|
|
4,716
|
|
3.60 %
|
|
Total interest-bearing
liabilities
|
9,736,435
|
|
152,239
|
|
1.56 %
|
|
9,380,786
|
|
28,117
|
|
0.30 %
|
|
Noninterest-bearing
demand deposits (g)
|
2,785,279
|
|
|
|
|
|
3,070,892
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
237,810
|
|
|
|
|
|
207,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
12,759,524
|
|
|
|
|
|
12,658,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
1,510,285
|
|
|
|
|
|
1,518,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
14,269,809
|
|
|
|
|
|
$
14,177,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
438,864
|
|
2.86 %
|
|
|
|
423,469
|
|
3.11 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets/Net interest margin
|
$ 3,630,748
|
|
|
|
3.28 %
|
|
$ 3,872,832
|
|
|
|
3.20 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.37X
|
|
|
|
|
|
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 0.91% and 0.12%, respectively and average cost of
Interest-bearing deposits were 1.20% and 0.16%,
respectively.
|
|
(h)
|
Shown on a FTE
basis. GAAP basis yields were: Loans — 4.90% and 3.95%,
respectively; Investment securities — 1.57% and 1.53%,
respectively; Interest-earning assets — 4.40% and 3.39%,
respectively. GAAP basis net interest rate spreads were 2.83% and
3.09%, respectively; and GAAP basis net interest margins were 3.26%
and 3.17%, respectively.
|
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SOURCE Northwest Bank; Northwest Bancshares, Inc.