WARREN, Pa., Jan. 27, 2020 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2019 of $25.6 million, or $0.24 per diluted share. This represents a decrease of $876,000, or 3.3%, compared to the same quarter last year when net income was $26.5 million or $0.26 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended December 31, 2019 were 7.52% and 0.97% compared to 8.44% and 1.09% for the same quarter last year.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.19 per share payable on February 14, 2020 to shareholders of record as of February 6, 2020. This is the 101st consecutive quarter in which the Company has paid a cash dividend and represents a 5.6% increase over the prior year. Based on the market value of the Company's stock as of December 31, 2019, this represents an annualized dividend yield of approximately 4.57%.
In making this announcement, Ronald J. Seiffert, Chairman, President and CEO, noted, "While the fourth quarter was negatively impacted by a loan loss provision for a recently classified C&I loan, costs associated with litigation settlements as well as a continued decline in net interest margin as expected, overall we were very pleased with our annual 2019 results. Annual net income of $110.4 million, or $1.04 per diluted share, exceeded the prior year net income of $105.5 million, or $1.02 per diluted share, by $4.9 million or almost 5.0%. For the year, loans grew $757.2 million, or 9.4%, with approximately half of this growth coming from the Union Community Bank acquisition and the other half coming from internal growth. In addition, we were able to fund this growth almost entirely with internal deposit growth. Noninterest income experienced exceptional growth for the year of $7.7 million, or 8.4%, across almost all categories. Our mortgage banking operation is beginning to contribute in a meaningful way, brokerage investment revenue increased by over 7% and recent changes in the fourth quarter in our fees and fee income philosophy will benefit us going into 2020. Finally, we look forward to welcoming the MutualBank employees and customers in April along with their $2.1 billion balance sheet and expected earnings accretion."
Net interest income increased by $2.1 million, or 2.4%, to $88.9 million for the quarter ended December 31, 2019, from $86.8 million for the quarter ended December 31, 2018, primarily due to a $5.4 million, or 5.8%, increase in interest income on loans receivable. This increase was primarily due to an increase of $734.0 million, or 9.2%, in the average balance of loans. Partially offsetting this improvement was an increase in interest expense on deposits of $3.9 million, or 43.5%, due to elevated market interest rates when compared to the prior year, resulting in an increase in the cost of our interest-bearing liabilities to 0.80% for the quarter ended December 31, 2019 from 0.67% for the quarter ended December 31, 2018. The net impact of these changes caused the Company's net interest margin to decrease to 3.73% for the quarter ended December 31, 2019 from 3.94% for the same quarter last year.
The provision for loan losses increased by $4.4 million, or 116.9%, to $8.2 million for the quarter ended December 31, 2019, from $3.8 million for the quarter ended December 31, 2018. The provision increased in the current quarter due to the downgrade of an $11.5 million commercial loan resulting in a loan loss reserve on this relationship of approximately $7.4 million.
Noninterest income increased by $5.0 million, or 21.4%, to $28.2 million for the quarter ended December 31, 2019, from $23.2 million for the quarter ended December 31, 2018. This increase was due to a $1.3 million, or 10.1%, increase in service charges and fees as a result of additional fees collected on deposit accounts due to a recent change in fee structure, a $1.3 million increase in mortgage banking income as a result of expanding our secondary market sales capabilities and a $1.0 million, or 34.6%, increase in other operating income from increases in interest rate swap fee income. In addition, we recognized a gain of $908,000 in the current quarter on the sale of approximately $52.2 million of one-to-four family mortgage loans from our portfolio. Consistent with our strategy in the third quarter of 2019, we chose to sell these loans as they were identified as most likely to refinance due to declining market interest rates and we redeployed the proceeds into shorter duration consumer and commercial loans at an equivalent yield.
Noninterest expense increased by $4.3 million, or 5.9%, to $76.6 million for the quarter ended December 31, 2019, from $72.3 million for the quarter ended December 31, 2018. This increase resulted from a $2.8 million, or 7.0%, increase in compensation and employee benefits due to both internal growth in compensation and staff as well as the addition of Union Community Bank ("UCB") employees. Also contributing to this increase was an increase in other expenses of $1.2 million, or 31.5%, primarily related to an increase in litigation accruals and an increase in acquisition expense of $679,000 due to initial expenses incurred as a result of the recently announced acquisition of MutualFirst Financial, Inc. Partially offsetting this increase was a decrease in marketing expenses of $1.3 million due primarily to our debit card reward program being discontinued and a decrease in federal deposit premiums of $637,000 due to an assessment credit received during the quarter as a result of the deposit insurance fund becoming fully funded.
Net income for the year ended December 31, 2019 was $110.4 million, or $1.04 per diluted share. This represents an increase of $4.9 million, or 4.7%, compared to the year ended December 31, 2018, when net income was $105.5 million, or $1.02 per diluted share. The annualized returns on average shareholders' equity and average assets for the year ended December 31, 2019 were 8.36% and 1.07% compared to 8.61% and 1.11% for the prior year. This increase in net income was the result of an increase in net interest income after provision of $19.5 million, or 6.1%, and an increase in noninterest income of $7.7 million, or 8.4%. These increases were partially offset by an increase in noninterest expense of $20.0 million, or 7.2%. Contributing to the additional expense is the added cost of UCB operations, including additional compensation costs, additional processing costs associated with our new commercial and residential mortgage platforms as well as increased online banking usage fees, and the acquisition costs associated with the UCB conversion in March 2019 and the initial costs incurred for the pending MutualFirst Financial, Inc. acquisition scheduled to close in the second quarter of 2020.
Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. Northwest operates 172 full-service community banking offices and nine free standing drive-through facilities in Pennsylvania, New York and Ohio. 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 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; and (7) increased risk associated with commercial real-estate and business loans. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.
Northwest Bancshares, Inc. and Subsidiaries | |||||||||
Consolidated Statements of Financial Condition (Unaudited) | |||||||||
(dollars in thousands, except per share amounts) | |||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | |||||||
Assets | |||||||||
Cash and cash equivalents | $ | 60,846 | 107,602 | 68,789 | |||||
Marketable securities available-for-sale (amortized cost of $815,495, $801,465 and $811,015, respectively) | 819,901 | 807,823 | 801,450 | ||||||
Marketable securities held-to-maturity (fair value of $18,223, $19,237 and $22,446, respectively) | 18,036 | 18,958 | 22,765 | ||||||
Total cash and cash equivalents and marketable securities | 898,783 | 934,383 | 893,004 | ||||||
Residential mortgage loans held-for-sale | 7,709 | 8,859 | — | ||||||
Residential mortgage loans | 2,860,418 | 2,887,274 | 2,864,470 | ||||||
Home equity loans | 1,342,918 | 1,328,173 | 1,258,422 | ||||||
Consumer loans | 1,125,132 | 1,094,293 | 859,713 | ||||||
Commercial real estate loans | 2,754,390 | 2,812,839 | 2,471,821 | ||||||
Commercial loans | 718,107 | 720,579 | 597,013 | ||||||
Total loans receivable | 8,808,674 | 8,852,017 | 8,051,439 | ||||||
Allowance for loan losses | (57,941) | (52,859) | (55,214) | ||||||
Loans receivable, net | 8,750,733 | 8,799,158 | 7,996,225 | ||||||
Federal Home Loan Bank stock, at cost | 14,740 | 21,401 | 15,635 | ||||||
Accrued interest receivable | 25,755 | 27,069 | 24,490 | ||||||
Real estate owned, net | 950 | 1,237 | 2,498 | ||||||
Premises and equipment, net | 147,409 | 148,796 | 143,390 | ||||||
Bank-owned life insurance | 189,091 | 187,971 | 171,079 | ||||||
Goodwill | 346,103 | 344,720 | 307,420 | ||||||
Other intangible assets | 23,076 | 22,410 | 19,821 | ||||||
Other assets | 97,268 | 93,329 | 34,211 | ||||||
Total assets | $ | 10,493,908 | 10,580,474 | 9,607,773 | |||||
Liabilities and shareholders' equity | |||||||||
Liabilities | |||||||||
Noninterest-bearing demand deposits | $ | 1,609,653 | 1,905,650 | 1,736,156 | |||||
Interest-bearing demand deposits | 1,944,108 | 1,678,644 | 1,455,460 | ||||||
Money market deposit accounts | 1,863,998 | 1,828,001 | 1,661,623 | ||||||
Savings deposits | 1,604,838 | 1,635,754 | 1,636,099 | ||||||
Time deposits | 1,569,410 | 1,633,451 | 1,404,841 | ||||||
Total deposits | 8,592,007 | 8,681,500 | 7,894,179 | ||||||
Borrowed funds | 246,336 | 255,257 | 234,389 | ||||||
Junior subordinated debentures | 121,800 | 121,787 | 111,213 | ||||||
Advances by borrowers for taxes and insurance | 44,556 | 24,331 | 43,298 | ||||||
Accrued interest payable | 1,142 | 1,314 | 744 | ||||||
Other liabilities | 134,782 | 144,515 | 66,312 | ||||||
Total liabilities | 9,140,623 | 9,228,704 | 8,350,135 | ||||||
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, 106,859,088, 106,658,067, and 103,354,030 shares issued and outstanding, respectively | 1,069 | 1,067 | 1,034 | ||||||
Paid-in capital | 805,750 | 801,382 | 745,926 | ||||||
Retained earnings | 583,407 | 577,018 | 550,374 | ||||||
Accumulated other comprehensive loss | (36,941) | (27,697) | (39,696) | ||||||
Total shareholders' equity | 1,353,285 | 1,351,770 | 1,257,638 | ||||||
Total liabilities and shareholders' equity | $ | 10,493,908 | 10,580,474 | 9,607,773 | |||||
Equity to assets | 12.90 | % | 12.78 | % | 13.09 | % | |||
Tangible common equity to assets | 9.72 | % | 9.64 | % | 10.03 | % | |||
Book value per share | $ | 12.66 | 12.67 | 12.17 | |||||
Tangible book value per share | $ | 9.21 | 9.23 | 9.00 | |||||
Closing market price per share | $ | 16.63 | 16.39 | 16.94 | |||||
Full time equivalent employees | 2,209 | 2,218 | 2,128 | ||||||
Number of banking offices | 181 | 182 | 172 | ||||||
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||||||
Consolidated Statements of Income (Unaudited) | |||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||
Quarter ended | |||||||||||||||
December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||
Interest income: | |||||||||||||||
Loans receivable | $ | 97,866 | 101,091 | 100,917 | 94,935 | 92,512 | |||||||||
Mortgage-backed securities | 4,237 | 4,188 | 4,280 | 3,965 | 3,942 | ||||||||||
Taxable investment securities | 683 | 884 | 898 | 936 | 924 | ||||||||||
Tax-free investment securities | 201 | 224 | 237 | 182 | 170 | ||||||||||
FHLB dividends | 262 | 307 | 316 | 171 | 151 | ||||||||||
Interest-earning deposits | 169 | 172 | 159 | 100 | 69 | ||||||||||
Total interest income | 103,418 | 106,866 | 106,807 | 100,289 | 97,768 | ||||||||||
Interest expense: | |||||||||||||||
Deposits | 12,893 | 13,694 | 12,484 | 10,145 | 8,985 | ||||||||||
Borrowed funds | 1,580 | 2,236 | 1,720 | 2,162 | 1,952 | ||||||||||
Total interest expense | 14,473 | 15,930 | 14,204 | 12,307 | 10,937 | ||||||||||
Net interest income | 88,945 | 90,936 | 92,603 | 87,982 | 86,831 | ||||||||||
Provision for loan losses | 8,223 | 3,302 | 4,667 | 6,467 | 3,792 | ||||||||||
Net interest income after provision for loan losses | 80,722 | 87,634 | 87,936 | 81,515 | 83,039 | ||||||||||
Noninterest income: | |||||||||||||||
Gain/(loss) on sale of investments | 27 | — | 29 | (6) | 4 | ||||||||||
Gain on sale of loans | 908 | 826 | — | — | — | ||||||||||
Service charges and fees | 14,125 | 13,558 | 13,339 | 12,043 | 12,827 | ||||||||||
Trust and other financial services income | 4,517 | 4,609 | 4,444 | 4,195 | 4,246 | ||||||||||
Insurance commission income | 1,858 | 1,887 | 2,145 | 2,178 | 1,906 | ||||||||||
Gain/(loss) on real estate owned, net | 86 | (227) | 91 | (3) | (14) | ||||||||||
Income from bank owned life insurance | 1,121 | 1,095 | 1,197 | 1,005 | 1,038 | ||||||||||
Mortgage banking income | 1,494 | 1,921 | 188 | 216 | 213 | ||||||||||
Other operating income | 4,077 | 2,500 | 1,930 | 2,034 | 3,028 | ||||||||||
Total noninterest income | 28,213 | 26,169 | 23,363 | 21,662 | 23,248 | ||||||||||
Noninterest expense: | |||||||||||||||
Compensation and employee benefits | 42,074 | 40,816 | 42,008 | 38,188 | 39,319 | ||||||||||
Premises and occupancy costs | 7,051 | 7,061 | 7,387 | 7,218 | 6,567 | ||||||||||
Office operations | 4,097 | 3,197 | 3,708 | 3,131 | 3,455 | ||||||||||
Collections expense | 566 | 747 | 939 | 308 | 780 | ||||||||||
Processing expenses | 10,263 | 11,122 | 10,634 | 10,434 | 10,160 | ||||||||||
Marketing expenses | 1,010 | 1,373 | 2,729 | 1,886 | 2,331 | ||||||||||
Federal deposit insurance premiums | — | (702) | 681 | 706 | 637 | ||||||||||
Professional services | 3,533 | 3,032 | 3,198 | 2,524 | 3,134 | ||||||||||
Amortization of intangible assets | 1,634 | 1,702 | 1,760 | 1,447 | 1,346 | ||||||||||
Real estate owned expense | 72 | 119 | 128 | 159 | 187 | ||||||||||
Restructuring/acquisition expense | 1,114 | 23 | 1,105 | 1,926 | 435 | ||||||||||
Other expenses | 5,157 | 2,106 | 3,235 | 3,497 | 3,922 | ||||||||||
Total noninterest expense | 76,571 | 70,596 | 77,512 | 71,424 | 72,273 | ||||||||||
Income before income taxes | 32,364 | 43,207 | 33,787 | 31,753 | 34,014 | ||||||||||
Income tax expense | 6,773 | 9,793 | 7,404 | 6,709 | 7,547 | ||||||||||
Net income | $ | 25,591 | 33,414 | 26,383 | 25,044 | 26,467 | |||||||||
Basic earnings per share | $ | 0.24 | 0.32 | 0.25 | 0.24 | 0.26 | |||||||||
Diluted earnings per share | $ | 0.24 | 0.31 | 0.25 | 0.24 | 0.26 | |||||||||
Weighted average common shares outstanding - basic | 105,627,194 | 105,517,707 | 105,233,635 | 103,101,789 | 102,479,086 | ||||||||||
Weighted average common shares outstanding - diluted | 106,306,615 | 106,270,544 | 106,258,215 | 104,496,592 | 103,749,383 | ||||||||||
Annualized return on average equity | 7.52 | % | 9.90 | % | 8.01 | % | 7.96 | % | 8.44 | % | |||||
Annualized return on average assets | 0.97 | % | 1.25 | % | 1.02 | % | 1.03 | % | 1.09 | % | |||||
Annualized return on tangible common equity** | 10.32 | % | 13.46 | % | 10.97 | % | 10.74 | % | 11.29 | % | |||||
Efficiency ratio * | 63.01 | % | 58.81 | % | 64.37 | % | 62.07 | % | 64.04 | % | |||||
Annualized noninterest expense to average assets * | 2.80 | % | 2.59 | % | 2.88 | % | 2.79 | % | 2.91 | % | |||||
* | Excludes restructuring/acquisition expenses and amortization of intangible assets (non-GAAP). |
** | 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) | ||||||
Year ended December 31, | ||||||
2019 | 2018 | |||||
Interest income: | ||||||
Loans receivable | $ | 394,809 | 356,571 | |||
Mortgage-backed securities | 16,670 | 13,781 | ||||
Taxable investment securities | 3,401 | 3,064 | ||||
Tax-free investment securities | 844 | 1,078 | ||||
FHLB dividends | 1,056 | 452 | ||||
Interest-earning deposits | 600 | 835 | ||||
Total interest income | 417,380 | 375,781 | ||||
Interest expense: | ||||||
Deposits | 49,216 | 30,985 | ||||
Borrowed funds | 7,698 | 6,155 | ||||
Total interest expense | 56,914 | 37,140 | ||||
Net interest income | 360,466 | 338,641 | ||||
Provision for loan losses | 22,659 | 20,332 | ||||
Net interest income after provision for loan losses | 337,807 | 318,309 | ||||
Noninterest income: | ||||||
Gain on sale of investments | 50 | 157 | ||||
Gain on sale of loans | 1,734 | — | ||||
Service charges and fees | 53,065 | 50,792 | ||||
Trust and other financial services income | 17,765 | 16,581 | ||||
Insurance commission income | 8,068 | 8,791 | ||||
Loss on real estate owned, net | (53) | (631) | ||||
Income from bank owned life insurance | 4,418 | 5,821 | ||||
Mortgage banking income | 3,819 | 596 | ||||
Other operating income | 10,541 | 9,595 | ||||
Total noninterest income | 99,407 | 91,702 | ||||
Noninterest expense: | ||||||
Compensation and employee benefits | 163,086 | 152,395 | ||||
Premises and occupancy costs | 28,717 | 27,519 | ||||
Office operations | 14,133 | 14,139 | ||||
Collections expense | 2,560 | 2,209 | ||||
Processing expenses | 42,453 | 39,046 | ||||
Marketing expenses | 6,998 | 8,434 | ||||
Federal deposit insurance premiums | 685 | 2,746 | ||||
Professional services | 12,287 | 10,598 | ||||
Amortization of intangible assets | 6,543 | 5,848 | ||||
Real estate owned expense | 478 | 817 | ||||
Restructuring/acquisition expense | 4,168 | 1,014 | ||||
Other expenses | 13,995 | 11,333 | ||||
Total noninterest expense | 296,103 | 276,098 | ||||
Income before income taxes | 141,111 | 133,913 | ||||
Income tax expense | 30,679 | 28,422 | ||||
Net income | $ | 110,432 | 105,491 | |||
Basic earnings per share | $ | 1.05 | 1.03 | |||
Diluted earnings per share | $ | 1.04 | 1.02 | |||
Weighted average common shares outstanding - basic | 104,878,774 | 102,073,888 | ||||
Weighted average common shares outstanding - diluted | 105,839,149 | 103,565,901 | ||||
Return on average equity | 8.36 | % | 8.61 | % | ||
Return on average assets | 1.07 | % | 1.11 | % | ||
Return on tangible common equity** | 11.22 | % | 11.34 | % | ||
Efficiency ratio * | 62.06 | % | 62.56 | % | ||
Annualized noninterest expense to average assets * | 2.76 | % | 2.83 | % | ||
* | Excludes restructuring/acquisition expenses and amortization of intangible assets (non-GAAP). |
** | Excludes goodwill and other intangible assets (non-GAAP). |
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||||||
Asset quality (Unaudited) | |||||||||||||||
(dollars in thousands) | |||||||||||||||
December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||
Nonaccrual loans current: | |||||||||||||||
Residential mortgage loans | $ | 72 | 676 | 432 | 124 | 264 | |||||||||
Home equity loans | 197 | 607 | 475 | 643 | 437 | ||||||||||
Consumer loans | 78 | 68 | 94 | 76 | 196 | ||||||||||
Commercial real estate loans | 9,241 | 7,674 | 12,605 | 10,520 | 9,947 | ||||||||||
Commercial loans | 3,424 | 3,777 | 5,666 | 4,277 | 4,736 | ||||||||||
Total nonaccrual loans current | $ | 13,012 | 12,802 | 19,272 | 15,640 | 15,580 | |||||||||
Nonaccrual loans delinquent 30 days to 59 days: | |||||||||||||||
Residential mortgage loans | $ | 674 | 40 | 13 | 824 | 1,358 | |||||||||
Home equity loans | 224 | 102 | 418 | 160 | 266 | ||||||||||
Consumer loans | 121 | 246 | 172 | 154 | 294 | ||||||||||
Commercial real estate loans | 196 | 925 | 469 | 2,642 | 219 | ||||||||||
Commercial loans | 55 | 44 | 45 | 321 | 23 | ||||||||||
Total nonaccrual loans delinquent 30 days to 59 days | $ | 1,270 | 1,357 | 1,117 | 4,101 | 2,160 | |||||||||
Nonaccrual loans delinquent 60 days to 89 days: | |||||||||||||||
Residential mortgage loans | $ | 1,048 | 979 | 910 | 1,323 | 1,262 | |||||||||
Home equity loans | 689 | 436 | 717 | 954 | 376 | ||||||||||
Consumer loans | 417 | 426 | 322 | 683 | 582 | ||||||||||
Commercial real estate loans | 413 | 536 | 1,426 | 3,588 | 1,260 | ||||||||||
Commercial loans | 341 | — | 780 | 397 | 332 | ||||||||||
Total nonaccrual loans delinquent 60 days to 89 days | $ | 2,908 | 2,377 | 4,155 | 6,945 | 3,812 | |||||||||
Nonaccrual loans delinquent 90 days or more: | |||||||||||||||
Residential mortgage loans | $ | 12,682 | 11,722 | 10,617 | 10,781 | 12,965 | |||||||||
Home equity loans | 5,635 | 5,966 | 5,591 | 5,542 | 5,996 | ||||||||||
Consumer finance loans | 1 | 1 | 10 | — | 22 | ||||||||||
Consumer loans | 3,609 | 3,399 | 2,892 | 3,215 | 3,228 | ||||||||||
Commercial real estate loans | 25,014 | 22,292 | 21,123 | 24,528 | 25,509 | ||||||||||
Commercial loans | 4,739 | 5,741 | 2,920 | 2,027 | 3,010 | ||||||||||
Total nonaccrual loans delinquent 90 days or more | $ | 51,680 | 49,121 | 43,153 | 46,093 | 50,730 | |||||||||
Total nonaccrual loans | $ | 68,870 | 65,657 | 67,697 | 72,779 | 72,282 | |||||||||
Total nonaccrual loans | $ | 68,870 | 65,657 | 67,697 | 72,779 | 72,282 | |||||||||
Loans 90 days past maturity and still accruing | 32 | 85 | 55 | 166 | 166 | ||||||||||
Nonperforming loans | 68,902 | 65,742 | 67,752 | 72,945 | 72,448 | ||||||||||
Real estate owned, net | 950 | 1,237 | 2,070 | 2,345 | 2,498 | ||||||||||
Nonperforming assets | $ | 69,852 | 66,979 | 69,822 | 75,290 | 74,946 | |||||||||
Nonaccrual troubled debt restructuring * | $ | 9,043 | 9,138 | 13,375 | 14,951 | 15,306 | |||||||||
Accruing troubled debt restructuring | 22,956 | 21,162 | 17,894 | 17,861 | 18,302 | ||||||||||
Total troubled debt restructuring | $ | 31,999 | 30,300 | 31,269 | 32,812 | 33,608 | |||||||||
Nonperforming loans to total loans | 0.78 | % | 0.74 | % | 0.78 | % | 0.85 | % | 0.90 | % | |||||
Nonperforming assets to total assets | 0.67 | % | 0.63 | % | 0.66 | % | 0.73 | % | 0.78 | % | |||||
Allowance for loan losses to total loans | 0.66 | % | 0.60 | % | 0.61 | % | 0.65 | % | 0.69 | % | |||||
Allowance for loan losses to nonperforming loans | 84.09 | % | 80.40 | % | 78.38 | % | 76.39 | % | 76.21 | % | |||||
* | Amounts included in nonperforming loans above. |
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||||||||||
Loans by credit quality indicators (Unaudited) | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||
At December 31, 2019 | Pass | Specialmention* | Substandard** | Doubtful | Loss | Loans receivable | |||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,858,582 | — | 9,545 | — | — | 2,868,127 | ||||||||||||
Home equity loans | 1,336,111 | — | 6,807 | — | — | 1,342,918 | |||||||||||||
Consumer loans | 1,120,732 | — | 4,400 | — | — | 1,125,132 | |||||||||||||
Total Personal Banking | 5,315,425 | — | 20,752 | — | — | 5,336,177 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,538,816 | 80,570 | 135,004 | — | — | 2,754,390 | |||||||||||||
Commercial loans | 616,983 | 42,380 | 58,744 | — | — | 718,107 | |||||||||||||
Total Commercial Banking | 3,155,799 | 122,950 | 193,748 | — | — | 3,472,497 | |||||||||||||
Total loans | $ | 8,471,224 | 122,950 | 214,500 | — | — | 8,808,674 | ||||||||||||
At September 30, 2019 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,887,077 | — | 9,056 | — | — | 2,896,133 | ||||||||||||
Home equity loans | 1,320,930 | — | 7,243 | — | — | 1,328,173 | |||||||||||||
Consumer loans | 1,090,030 | — | 4,263 | — | — | 1,094,293 | |||||||||||||
Total Personal Banking | 5,298,037 | — | 20,562 | — | — | 5,318,599 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,601,025 | 69,380 | 142,253 | 181 | — | 2,812,839 | |||||||||||||
Commercial loans | 639,998 | 37,666 | 42,800 | 115 | — | 720,579 | |||||||||||||
Total Commercial Banking | 3,241,023 | 107,046 | 185,053 | 296 | — | 3,533,418 | |||||||||||||
Total loans | $ | 8,539,060 | 107,046 | 205,615 | 296 | — | 8,852,017 | ||||||||||||
At June 30, 2019 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,890,472 | — | 8,692 | — | — | 2,899,164 | ||||||||||||
Home equity loans | 1,307,887 | — | 7,060 | — | — | 1,314,947 | |||||||||||||
Consumer loans | 1,007,813 | — | 3,611 | — | — | 1,011,424 | |||||||||||||
Total Personal Banking | 5,206,172 | — | 19,363 | — | — | 5,225,535 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,586,013 | 86,434 | 135,525 | 181 | — | 2,808,153 | |||||||||||||
Commercial loans | 621,889 | 38,182 | 42,141 | 982 | — | 703,194 | |||||||||||||
Total Commercial Banking | 3,207,902 | 124,616 | 177,666 | 1,163 | — | 3,511,347 | |||||||||||||
Total loans | $ | 8,414,074 | 124,616 | 197,029 | 1,163 | — | 8,736,882 | ||||||||||||
At March 31, 2019 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,858,007 | — | 9,154 | — | — | 2,867,161 | ||||||||||||
Home equity loans | 1,317,323 | — | 7,082 | — | — | 1,324,405 | |||||||||||||
Consumer loans | 926,832 | — | 4,230 | — | — | 931,062 | |||||||||||||
Total Personal Banking | 5,102,162 | — | 20,466 | — | — | 5,122,628 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,577,176 | 87,053 | 135,080 | — | — | 2,799,309 | |||||||||||||
Commercial loans | 573,160 | 34,610 | 40,168 | — | — | 647,938 | |||||||||||||
Total Commercial Banking | 3,150,336 | 121,663 | 175,248 | — | — | 3,447,247 | |||||||||||||
Total loans | $ | 8,252,498 | 121,663 | 195,714 | — | — | 8,569,875 | ||||||||||||
At December 31, 2018 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,853,460 | — | 11,010 | — | — | 2,864,470 | ||||||||||||
Home equity loans | 1,251,518 | — | 6,904 | — | — | 1,258,422 | |||||||||||||
Consumer loans | 855,277 | — | 4,436 | — | — | 859,713 | |||||||||||||
Total Personal Banking | 4,960,255 | — | 22,350 | — | — | 4,982,605 | |||||||||||||
Commercial Banking: | — | ||||||||||||||||||
Commercial real estate loans | 2,254,350 | 94,688 | 122,783 | — | — | 2,471,821 | |||||||||||||
Commercial loans | 538,762 | 19,281 | 38,970 | — | — | 597,013 | |||||||||||||
Total Commercial Banking | 2,793,112 | 113,969 | 161,753 | — | — | 3,068,834 | |||||||||||||
Total loans | $ | 7,753,367 | 113,969 | 184,103 | — | — | 8,051,439 | ||||||||||||
* | Includes $10.3 million, $8.7 million, $8.1 million, $3.4 million, and $7.1 million of acquired loans at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively. |
** | Includes $53.1 million, $46.6 million, $38.6 million, $37.8 million, and $39.3 million of acquired loans at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively. |
Northwest Bancshares, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loan delinquency (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | * | September 30, 2019 | * | June 30, 2019 | * | March 31, 2019 | * | December 31, 2018 | * | |||||||||||||||||||||||||||||||||||||||||
(Number of loans and dollar amount of loans) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30 days to 59 days: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 292 | $ | 23,296 | 0.8 | % | 21 | $ | 1,236 | — | % | 30 | $ | 1,629 | 0.1 | % | 311 | $ | 28,009 | 1.0 | % | 333 | $ | 27,777 | 1.0 | % | |||||||||||||||||||||||||
Home equity loans | 173 | 6,469 | 0.5 | % | 149 | 4,774 | 0.4 | % | 148 | 4,573 | 0.3 | % | 195 | 7,626 | 0.6 | % | 233 | 8,649 | 0.7 | % | ||||||||||||||||||||||||||||||
Consumer finance loans | 32 | 63 | 12.4 | % | 43 | 98 | 11.2 | % | 75 | 130 | 9.0 | % | 128 | 295 | 12.9 | % | 327 | 661 | 17.3 | % | ||||||||||||||||||||||||||||||
Consumer loans | 928 | 9,145 | 0.8 | % | 821 | 7,499 | 0.7 | % | 781 | 7,500 | 0.7 | % | 777 | 7,228 | 0.8 | % | 1,073 | 9,447 | 1.1 | % | ||||||||||||||||||||||||||||||
Commercial real estate loans | 43 | 7,921 | 0.3 | % | 27 | 5,308 | 0.2 | % | 31 | 2,418 | 0.1 | % | 48 | 28,965 | 1.0 | % | 37 | 5,503 | 0.2 | % | ||||||||||||||||||||||||||||||
Commercial loans | 32 | 1,187 | 0.2 | % | 20 | 362 | 0.1 | % | 14 | 666 | 0.1 | % | 30 | 3,359 | 0.5 | % | 21 | 973 | 0.2 | % | ||||||||||||||||||||||||||||||
Total loans delinquent 30 days to 59 days | 1,500 | $ | 48,081 | 0.5 | % | 1,081 | $ | 19,277 | 0.2 | % | 1,079 | $ | 16,916 | 0.2 | % | 1,489 | $ | 75,482 | 0.9 | % | 2,024 | $ | 53,010 | 0.7 | % | |||||||||||||||||||||||||
Loans delinquent 60 days to 89 days: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 67 | $ | 5,693 | 0.2 | % | 95 | $ | 5,320 | 0.2 | % | 78 | $ | 6,264 | 0.2 | % | 29 | $ | 2,602 | 0.1 | % | 71 | $ | 6,425 | 0.2 | % | |||||||||||||||||||||||||
Home equity loans | 66 | 2,405 | 0.2 | % | 66 | 2,103 | 0.2 | % | 59 | 2,319 | 0.2 | % | 53 | 2,544 | 0.2 | % | 63 | 2,065 | 0.2 | % | ||||||||||||||||||||||||||||||
Consumer finance loans | 16 | 35 | 6.8 | % | 21 | 43 | 4.9 | % | 25 | 44 | 3.0 | % | 28 | 47 | 2.1 | % | 86 | 172 | 4.5 | % | ||||||||||||||||||||||||||||||
Consumer loans | 379 | 3,267 | 0.3 | % | 267 | 2,589 | 0.2 | % | 313 | 2,853 | 0.3 | % | 271 | 2,130 | 0.2 | % | 389 | 3,042 | 0.4 | % | ||||||||||||||||||||||||||||||
Commercial real estate loans | 19 | 1,690 | 0.1 | % | 15 | 1,893 | 0.1 | % | 16 | 2,617 | 0.1 | % | 17 | 4,064 | 0.1 | % | 24 | 5,387 | 0.2 | % | ||||||||||||||||||||||||||||||
Commercial loans | 17 | 6,403 | 0.9 | % | 10 | 589 | 0.1 | % | 16 | 1,725 | 0.2 | % | 7 | 738 | 0.1 | % | 8 | 560 | 0.1 | % | ||||||||||||||||||||||||||||||
Total loans delinquent 60 days to 89 days | 564 | $ | 19,493 | 0.2 | % | 474 | $ | 12,537 | 0.1 | % | 507 | $ | 15,822 | 0.2 | % | 405 | $ | 12,125 | 0.2 | % | 641 | $ | 17,651 | 0.2 | % | |||||||||||||||||||||||||
Loans delinquent 90 days or more: ** | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 141 | $ | 12,775 | 0.4 | % | 138 | $ | 11,816 | 0.4 | % | 129 | $ | 10,800 | 0.4 | % | 113 | $ | 10,801 | 0.4 | % | 145 | $ | 12,985 | 0.5 | % | |||||||||||||||||||||||||
Home equity loans | 159 | 5,688 | 0.4 | % | 157 | 5,966 | 0.4 | % | 136 | 5,591 | 0.4 | % | 155 | 5,542 | 0.4 | % | 161 | 6,037 | 0.5 | % | ||||||||||||||||||||||||||||||
Consumer finance loans | 8 | 1 | 0.2 | % | 9 | 1 | 0.1 | % | 5 | 10 | 0.7 | % | — | — | — | % | 6 | 21 | 0.6 | % | ||||||||||||||||||||||||||||||
Consumer loans | 582 | 3,610 | 0.3 | % | 389 | 3,400 | 0.3 | % | 705 | 2,898 | 0.3 | % | 764 | 3,221 | 0.3 | % | 432 | 3,233 | 0.4 | % | ||||||||||||||||||||||||||||||
Commercial real estate loans | 129 | 25,014 | 0.9 | % | 118 | 22,292 | 0.8 | % | 118 | 21,123 | 0.7 | % | 125 | 24,589 | 0.9 | % | 128 | 25,587 | 1.0 | % | ||||||||||||||||||||||||||||||
Commercial loans | 37 | 4,739 | 0.7 | % | 40 | 5,741 | 0.8 | % | 25 | 2,920 | 0.4 | % | 23 | 2,027 | 0.3 | % | 29 | 3,010 | 0.5 | % | ||||||||||||||||||||||||||||||
Total loans delinquent 90 days or more | 1,056 | $ | 51,827 | 0.6 | % | 851 | $ | 49,216 | 0.6 | % | 1,118 | $ | 43,342 | 0.5 | % | 1,180 | $ | 46,180 | 0.6 | % | 901 | $ | 50,873 | 0.6 | % | |||||||||||||||||||||||||
Total loans delinquent | 3,120 | $ | 119,401 | 1.4 | % | 2,406 | $ | 81,030 | 0.9 | % | 2,704 | $ | 76,080 | 0.9 | % | 3,074 | $ | 133,787 | 1.6 | % | 3,566 | $ | 121,534 | 1.5 | % | |||||||||||||||||||||||||
* | Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding. |
** | Includes purchased credit impaired loans of $147,000, $95,000, $190,000, $87,000, and $145,000 at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively. |
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||||||
Allowance for loan losses (Unaudited) | |||||||||||||||
(dollars in thousands) | |||||||||||||||
Quarter ended | |||||||||||||||
December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||
Beginning balance | $ | 52,859 | 53,107 | 55,721 | 55,214 | 55,975 | |||||||||
Provision | 8,223 | 3,302 | 4,667 | 6,467 | 3,792 | ||||||||||
Charge-offs residential mortgage | (222) | (190) | (397) | (357) | (375) | ||||||||||
Charge-offs home equity | (113) | (466) | (389) | (153) | (341) | ||||||||||
Charge-offs consumer finance | (24) | (59) | (58) | (179) | (329) | ||||||||||
Charge-offs consumer | (3,118) | (3,019) | (2,508) | (2,842) | (3,751) | ||||||||||
Charge-offs commercial real estate | (107) | (389) | (4,367) | (604) | (1,538) | ||||||||||
Charge-offs commercial | (1,143) | (1,151) | (1,087) | (3,270) | (824) | ||||||||||
Recoveries | 1,586 | 1,724 | 1,525 | 1,445 | 2,605 | ||||||||||
Ending balance | $ | 57,941 | 52,859 | 53,107 | 55,721 | 55,214 | |||||||||
Net charge-offs to average loans, annualized | 0.14 | % | 0.16 | % | 0.34 | % | 0.29 | % | 0.23 | % | |||||
Year ended December 31, | ||||||
2019 | 2018 | |||||
Beginning balance | $ | 55,214 | 56,795 | |||
Provision | 22,659 | 20,332 | ||||
Charge-offs residential mortgage | (1,166) | (1,179) | ||||
Charge-offs home equity | (1,121) | (1,785) | ||||
Charge-offs consumer finance | (320) | (2,813) | ||||
Charge-offs consumer | (11,487) | (13,152) | ||||
Charge-offs commercial real estate | (5,467) | (7,387) | ||||
Charge-offs commercial | (6,651) | (3,325) | ||||
Recoveries | 6,280 | 7,728 | ||||
Ending balance | $ | 57,941 | 55,214 | |||
Net charge-offs to average loans | 0.23 | % | 0.28 | % | ||
December 31, 2019 | |||||||||||||||||
Originated loans | Acquired loans | Total loans | |||||||||||||||
Balance | Reserve | Balance | Reserve | Balance | Reserve | ||||||||||||
Residential mortgage loans | $ | 2,785,189 | 2,463 | 82,938 | 111 | 2,868,127 | 2,574 | ||||||||||
Home equity loans | 1,099,514 | 2,830 | 243,404 | 359 | 1,342,918 | 3,189 | |||||||||||
Consumer finance loans | 509 | 76 | — | — | 509 | 76 | |||||||||||
Consumer loans | 1,088,638 | 11,979 | 35,985 | 538 | 1,124,623 | 12,517 | |||||||||||
Personal Banking Loans | 4,973,850 | 17,348 | 362,327 | 1,008 | 5,336,177 | 18,356 | |||||||||||
Commercial real estate loans | 2,349,048 | 17,292 | 405,342 | 4,296 | 2,754,390 | 21,588 | |||||||||||
Commercial loans | 664,159 | 16,799 | 53,948 | 1,198 | 718,107 | 17,997 | |||||||||||
Commercial Banking Loans | 3,013,207 | 34,091 | 459,290 | 5,494 | 3,472,497 | 39,585 | |||||||||||
Total Loans | $ | 7,987,057 | 51,439 | 821,617 | 6,502 | 8,808,674 | 57,941 | ||||||||||
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||
Average balance sheet (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages. | |||||||||||||||||||||||||||||||||||||||||||||||||
Quarter ended | |||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 2,847,932 | 28,011 | 3.93 | % | $ | 2,894,716 | 28,991 | 4.01 | % | $ | 2,857,425 | 29,300 | 4.10 | % | $ | 2,842,556 | 29,282 | 4.12 | % | $ | 2,837,220 | 28,794 | 4.06 | % | ||||||||||||||||||||||||
Home equity loans | 1,333,748 | 15,354 | 4.57 | % | 1,316,033 | 16,131 | 4.86 | % | 1,319,056 | 17,717 | 5.39 | % | 1,265,974 | 16,048 | 5.14 | % | 1,264,169 | 15,788 | 4.95 | % | |||||||||||||||||||||||||||||
Consumer finance loans | 668 | 32 | 19.16 | % | 1,128 | 55 | 19.50 | % | 1,826 | 87 | 19.06 | % | 2,999 | 139 | 18.54 | % | 4,751 | 220 | 18.52 | % | |||||||||||||||||||||||||||||
Consumer loans | 1,072,897 | 11,984 | 4.43 | % | 1,027,451 | 11,861 | 4.58 | % | 943,254 | 10,649 | 4.53 | % | 869,536 | 10,052 | 4.69 | % | 791,685 | 9,365 | 4.69 | % | |||||||||||||||||||||||||||||
Commercial real estate loans | 2,741,687 | 32,985 | 4.71 | % | 2,796,351 | 34,441 | 4.82 | % | 2,801,953 | 35,537 | 5.02 | % | 2,560,408 | 30,767 | 4.81 | % | 2,492,331 | 29,991 | 4.71 | % | |||||||||||||||||||||||||||||
Commercial loans | 717,438 | 9,841 | 5.37 | % | 710,847 | 9,949 | 5.48 | % | 670,613 | 7,966 | 4.70 | % | 615,090 | 8,967 | 5.83 | % | 590,195 | 8,666 | 5.75 | % | |||||||||||||||||||||||||||||
Total loans receivable (a) (b) (d) | 8,714,370 | 98,207 | 4.47 | % | 8,746,526 | 101,428 | 4.60 | % | 8,594,127 | 101,256 | 4.73 | % | 8,156,563 | 95,255 | 4.74 | % | 7,980,351 | 92,824 | 4.61 | % | |||||||||||||||||||||||||||||
Mortgage-backed securities (c) | 667,910 | 4,237 | 2.54 | % | 641,085 | 4,188 | 2.61 | % | 644,887 | 4,280 | 2.65 | % | 604,463 | 3,965 | 2.62 | % | 619,105 | 3,942 | 2.55 | % | |||||||||||||||||||||||||||||
Investment securities (c) (d) | 151,289 | 938 | 2.48 | % | 218,753 | 1,168 | 2.14 | % | 226,325 | 1,198 | 2.12 | % | 227,312 | 1,167 | 2.05 | % | 227,813 | 1,140 | 2.00 | % | |||||||||||||||||||||||||||||
FHLB stock, at cost | 13,400 | 262 | 7.76 | % | 16,302 | 307 | 7.47 | % | 16,117 | 316 | 7.86 | % | 16,098 | 171 | 4.31 | % | 14,372 | 151 | 4.17 | % | |||||||||||||||||||||||||||||
Other interest-earning deposits | 31,624 | 169 | 2.09 | % | 28,832 | 172 | 2.33 | % | 20,983 | 159 | 3.00 | % | 14,136 | 100 | 2.83 | % | 10,454 | 68 | 2.55 | % | |||||||||||||||||||||||||||||
Total interest-earning assets | 9,578,593 | 103,813 | 4.30 | % | 9,651,498 | 107,263 | 4.41 | % | 9,502,439 | 107,209 | 4.53 | % | 9,018,572 | 100,658 | 4.53 | % | 8,852,095 | 98,125 | 4.40 | % | |||||||||||||||||||||||||||||
Noninterest earning assets (e) | 869,117 | 916,781 | 910,225 | 868,843 | 743,262 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 10,447,710 | $ | 10,568,279 | $ | 10,412,664 | $ | 9,887,415 | $ | 9,595,357 | |||||||||||||||||||||||||||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Savings deposits | $ | 1,615,996 | 792 | 0.19 | % | $ | 1,658,670 | 788 | 0.19 | % | $ | 1,696,715 | 777 | 0.18 | % | $ | 1,650,947 | 758 | 0.19 | % | $ | 1,637,400 | 758 | 0.18 | % | ||||||||||||||||||||||||
Interest-bearing demand deposits | 1,769,623 | 1,570 | 0.35 | % | 1,655,952 | 1,711 | 0.41 | % | 1,674,779 | 1,569 | 0.38 | % | 1,452,963 | 1,162 | 0.32 | % | 1,442,587 | 1,066 | 0.29 | % | |||||||||||||||||||||||||||||
Money market deposit accounts | 1,845,535 | 3,226 | 0.69 | % | 1,798,175 | 3,772 | 0.83 | % | 1,776,558 | 3,433 | 0.78 | % | 1,693,626 | 2,579 | 0.62 | % | 1,678,664 | 1,910 | 0.45 | % | |||||||||||||||||||||||||||||
Time deposits | 1,607,992 | 7,305 | 1.80 | % | 1,618,591 | 7,423 | 1.82 | % | 1,561,034 | 6,705 | 1.72 | % | 1,432,679 | 5,646 | 1.60 | % | 1,401,352 | 5,251 | 1.49 | % | |||||||||||||||||||||||||||||
Borrowed funds (f) | 177,670 | 444 | 0.99 | % | 243,960 | 1,002 | 1.63 | % | 147,119 | 413 | 1.13 | % | 257,550 | 1,006 | 1.58 | % | 216,975 | 782 | 1.43 | % | |||||||||||||||||||||||||||||
Junior subordinated debentures | 121,796 | 1,136 | 3.65 | % | 121,767 | 1,235 | 3.97 | % | 121,757 | 1,307 | 4.25 | % | 114,727 | 1,156 | 4.03 | % | 111,213 | 1,170 | 4.12 | % | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 7,138,612 | 14,473 | 0.80 | % | 7,097,115 | 15,931 | 0.89 | % | 6,977,962 | 14,204 | 0.82 | % | 6,602,492 | 12,307 | 0.76 | % | 6,488,191 | 10,937 | 0.67 | % | |||||||||||||||||||||||||||||
Noninterest-bearing demand deposits (g) | 1,800,861 | 1,915,392 | 1,888,697 | 1,785,158 | 1,750,253 | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest bearing liabilities | 158,434 | 216,433 | 225,623 | 223,480 | 112,349 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 9,097,907 | 9,228,940 | 9,092,282 | 8,611,130 | 8,350,793 | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity | 1,349,803 | 1,339,339 | 1,320,382 | 1,276,285 | 1,244,564 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 10,447,710 | $ | 10,568,279 | $ | 10,412,664 | $ | 9,887,415 | $ | 9,595,357 | |||||||||||||||||||||||||||||||||||||||
Net interest income/Interest rate spread | 89,340 | 3.50 | % | 91,332 | 3.52 | % | 93,005 | 3.71 | % | 88,351 | 3.77 | % | 87,188 | 3.73 | % | ||||||||||||||||||||||||||||||||||
Net interest-earning assets/Net interest margin | $ | 2,439,981 | 3.73 | % | $ | 2,554,383 | 3.79 | % | $ | 2,524,477 | 3.91 | % | $ | 2,416,080 | 3.97 | % | $ | 2,363,904 | 3.94 | % | |||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.34X | 1.36X | 1.36X | 1.37X | 1.36X | ||||||||||||||||||||||||||||||||||||||||||||
(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 0.59%, 0.63%, 0.58%, 0.51%, and 0.45%, respectively. |
(h) | Shown on a FTE basis. GAAP basis yields for the periods indicated were — Loans: 4.46%, 4.59%, 4.71%, 4.72%, and 4.60%, respectively, Investment securities: 2.34%, 2.03%, 2.01%, 1.97%, and 1.92%, respectively, Interest-earning assets: 4.28%, 4.39%, 4.51%, 4.51%, and 4.38%, respectively. GAAP basis net interest rate spreads were 3.48%, 3.50%, 3.69%, 3.75%, and 3.71%, respectively, and GAAP basis net interest margins were 3.71%, 3.77%, 3.90%, 3.96%, and 3.92%, respectively. |
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. | |||||||||||||||||||
Year ended December 31, | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
Average balance | Interest | Avg. yield/ cost (h) | Average balance | Interest | Avg. yield/ cost (h) | ||||||||||||||
Assets: | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Residential mortgage loans | $ | 2,860,765 | 115,583 | 4.04 | % | $ | 2,789,990 | 113,379 | 4.06 | % | |||||||||
Home equity loans | 1,308,908 | 64,222 | 4.91 | % | 1,279,087 | 61,405 | 4.80 | % | |||||||||||
Consumer finance loans | 1,648 | 314 | 19.05 | % | 9,367 | 1,847 | 19.72 | % | |||||||||||
Consumer loans | 978,975 | 44,545 | 4.55 | % | 697,722 | 33,153 | 4.75 | % | |||||||||||
Commercial real estate loans | 2,725,792 | 132,915 | 4.81 | % | 2,505,701 | 116,180 | 4.57 | % | |||||||||||
Commercial loans | 678,866 | 38,565 | 5.60 | % | 602,077 | 31,939 | 5.23 | % | |||||||||||
Loans receivable (a) (b) (d) | 8,554,954 | 396,144 | 4.63 | % | 7,883,944 | 357,903 | 4.54 | % | |||||||||||
Mortgage-backed securities (c) | 639,764 | 16,670 | 2.61 | % | 586,613 | 13,781 | 2.35 | % | |||||||||||
Investment securities (c) (d) | 205,757 | 4,470 | 2.17 | % | 240,989 | 4,429 | 1.84 | % | |||||||||||
FHLB stock | 14,477 | 1,056 | 7.29 | % | 10,354 | 452 | 4.37 | % | |||||||||||
Other interest-earning deposits | 23,305 | 600 | 2.54 | % | 41,079 | 835 | 2.00 | % | |||||||||||
Total interest-earning assets | 9,438,257 | 418,940 | 4.44 | % | 8,762,979 | 377,400 | 4.30 | % | |||||||||||
Noninterest earning assets (e) | 890,760 | 752,007 | |||||||||||||||||
Total assets | $ | 10,329,017 | $ | 9,514,986 | |||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Savings deposits | $ | 1,655,495 | 3,115 | 0.19 | % | $ | 1,669,930 | 3,064 | 0.18 | % | |||||||||
Interest-bearing demand deposits | 1,651,393 | 6,012 | 0.36 | % | 1,447,809 | 3,607 | 0.25 | % | |||||||||||
Money market deposit accounts | 1,778,661 | 13,010 | 0.73 | % | 1,690,481 | 5,740 | 0.34 | % | |||||||||||
Time deposits | 1,555,726 | 27,079 | 1.74 | % | 1,415,187 | 18,574 | 1.31 | % | |||||||||||
Borrowed funds (f) | 206,458 | 2,865 | 1.39 | % | 146,220 | 1,194 | 0.82 | % | |||||||||||
Junior subordinated debentures | 120,012 | 4,833 | 3.97 | % | 111,213 | 4,961 | 4.40 | % | |||||||||||
Total interest-bearing liabilities | 6,967,745 | 56,914 | 0.82 | % | 6,480,840 | 37,140 | 0.57 | % | |||||||||||
Noninterest-bearing demand deposits (g) | 1,835,622 | 1,710,841 | |||||||||||||||||
Noninterest bearing liabilities | 204,198 | 98,550 | |||||||||||||||||
Total liabilities | 9,007,565 | 8,290,231 | |||||||||||||||||
Shareholders' equity | 1,321,452 | 1,224,755 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 10,329,017 | $ | 9,514,986 | |||||||||||||||
Net interest income/Interest rate spread | 362,026 | 3.62 | % | 340,260 | 3.73 | % | |||||||||||||
Net interest-earning assets/Net interest margin | $ | 2,470,512 | 3.84 | % | $ | 2,282,139 | 3.88 | % | |||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.35X | 1.35X | |||||||||||||||||
(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 basis. |
(e) | Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
(f) | Average balances include FHLB borrowings and collateralized borrowings. |
(g) | Average cost of deposits were 0.58% and 0.39%, respectively. |
(h) | Shown on a FTE basis. GAAP basis yields for the periods indicated were — Loans: 4.61% and 4.52%, respectively, Investment securities: 2.06% and 1.72%, respectively, Interest-earning assets: 4.42% and 4.29%, respectively. GAAP basis net interest rate spreads were 3.61% and 3.72%, respectively, and GAAP basis net interest margins were 3.82% and 3.86%, respectively. |
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SOURCE Northwest Bancshares, Inc.