Columbus, Ohio — October 23, 2023
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.