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