WARREN, Pa., Oct. 25, 2021 /PRNewswire/ -- Northwest Bancshares, Inc. (the "Company") (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2021 of $35.1 million, or $0.27 per diluted share. This represents a decrease of $3.0 million, or 7.9%, compared to the same quarter last year, when net income was $38.1 million, or $0.30 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended September 30, 2021 were 8.86% and 0.97% compared to 9.82% and 1.09% for the same quarter last year.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on November 15, 2021 to shareholders of record as of November 5, 2021. This is the 108th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of September 30, 2021, this represents an annualized dividend yield of approximately 6.0%.
In making this announcement, Ronald J. Seiffert, Chairman, President and CEO, noted, "We were pleased to see that, absent the approximately $125.0 million of PPP loan forgiveness/payoffs this quarter, loans outstanding grew approximately $14.0 million, or 0.14%. In addition, $17.2 million of classified loans refinanced out of the bank which contributed to the $30.3 million decrease in nonperforming assets while our delinquencies continue to remain very low. As a result of these credit improvements, we continued to release credit loss reserves that were built up last year during COVID-19."
Mr. Seiffert continued "Although challenges continue with net interest income due to the low interest rate environment and falling yields, interest income during the current quarter was augmented by $4.0 million of PPP fee accretion. In addition, noninterest income stabilized during the most recent quarter having absorbed approximately $1.0 million less per month in interchange revenue since August of last year as a result of the negative impact of the Durbin amendment for all institutions with over $10.0 billion in assets. Finally, core noninterest expense has remained flat over the last five quarters as the result of our continued efforts focused on expense control."
Net interest income decreased by $5.1 million, or 4.9%, to $98.4 million for the quarter ended September 30, 2021, from $103.5 million for the quarter ended September 30, 2020, largely due to a $9.8 million, or 9.1%, decrease in interest income on loans receivable. This decrease in interest income on loans was due to a decrease of $551.4 million, or 5.1%, in the average balance of loans. Contributing to this decrease in average balances were $580.0 million of PPP loan forgiveness/payoffs since September 30 of last year. Also contributing to lower interest income was a decrease in the average loan yield to 3.80% for the quarter ended September 30, 2021 from 3.98% for the quarter ended September 30, 2020. Partially offsetting this decrease in interest income was a decrease of $3.9 million, or 46.2%, in interest expense on deposits due to a decline in market interest rates when compared to the prior year, resulting in a decrease in the cost of our interest-bearing liabilities to 0.27% for the quarter ended September 30, 2021 from 0.42% for the quarter ended September 30, 2020. The net effect of the changes in interest rates and average balances was a decrease in net interest margin to 2.97% for the quarter ended September 30, 2021 from 3.26% for the same quarter last year.
The provision for credit losses decreased by $11.2 million to a current period credit of $4.4 million for the quarter ended September 30, 2021 compared to a provision expense of $6.8 million for the quarter ended September 30, 2020 due to a release in the allowance for credit losses as economic forecasts continue to improve and classified assets declined. Total classified loans decreased by $73.4 million, or 16.0%, to $384.4 million, or 3.77% of total loans, at September 30, 2021 from $457.8 million, or 4.25% of total loans, at September 30, 2020.
Noninterest income decreased by $7.5 million, or 20.4%, to $29.2 million for the quarter ended September 30, 2021, from $36.7 million for the quarter ended September 30, 2020. This decrease was primarily due to a decrease in mortgage banking income of $7.1 million, or 64.4%, to $3.9 million for the quarter ended September 30, 2021 from $11.1 million for the quarter ended September 30, 2020. This decrease reflects the impact of less favorable pricing in the secondary market. In addition, there was a decrease in insurance commission income of $2.3 million, or 98.1%, to $44,000 for the quarter ended September 30, 2021 from $2.3 million for the quarter ended September 30, 2020 due to the sale of the insurance business during the second quarter of 2021. Lastly, service charges and fees decreased $1.2 million, or 8.0%, to $13.2 million for the quarter ended September 30, 2021 from $14.4 million for the quarter ended September 30, 2020 due primarily to the impact of being subject to the Durbin amendment on interchange revenue. Partially offsetting this decrease was an increase in trust and other financial services income of $1.8 million, or 33.6%, to $7.2 million for the quarter ended September 30, 2021 from $5.4 million for the quarter ended September 30, 2020, as a result of increases in both trust and brokerage advisory services. In addition, there was an increase in other operating income of $1.3 million, or 62.6%, to $3.3 million for the quarter ended September 30, 2021 from $2.0 million for the quarter ended September 30, 2020 primarily as a result of fees earned from debit/credit card volume-based incentives.
Noninterest expense decreased by $767,000, or 0.9%, to $86.1 million for the quarter ended September 30, 2021 from $86.9 million for the quarter ended September 30, 2020. This decrease was due to a decline in a majority of the noninterest expense categories. Processing expenses decreased $1.5 million, or 10.1%, to $13.5 million for the quarter ended September 30, 2021 from $15.0 million for the quarter ended September 30, 2020. Merger related expenses decreased $1.4 million, or 100.0%, due to expenses incurred in the prior year as a result of the acquisition of MutualFirst Financial, Inc. Partially offsetting these decreases was an increase of $1.7 million, or 3.6%, in compensation and employee benefits due primarily to increases in health insurance and other benefit costs, regular merit expense increases and the addition of strategic personnel. In addition, there was an increase in other expenses of $2.2 million for the quarter ended September 30, 2021 due primarily due to an increase in the unfunded reserve as a result of an increase in undrawn commitments in the commercial real estate and construction portfolios.
The provision for income taxes increased by $2.3 million, or 27.5%, to $10.8 million for the quarter ended September 30, 2021 from $8.5 million for the quarter ended September 30, 2020. This increase in income taxes was due to an increase in the annual effective tax rate for 2021 as the prior year had a greater percentage of net income generated by tax free or tax efficient earning assets.
Northwest Bancshares, Inc. is the holding company of Northwest Bank, which is headquartered in Warren, Pennsylvania. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of September 30, 2021, Northwest operated 162 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.
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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; (7) increased risk associated with commercial real-estate and business loans; and (8) 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 SubsidiariesConsolidated Statements of Financial Condition (Unaudited)(dollars in thousands, except per share amounts) | |||||||||
September 30,2021 | December 31,2020 | September 30,2020 | |||||||
Assets | |||||||||
Cash and cash equivalents | $ | 1,090,485 | 736,277 | 656,749 | |||||
Marketable securities available-for-sale (amortized cost of $1,587,105, $1,375,685 and $1,385,835, respectively) | 1,583,715 | 1,398,941 | 1,409,150 | ||||||
Marketable securities held-to-maturity (fair value of $609,777, $179,666 and $16,168, respectively) | 618,395 | 178,887 | 15,333 | ||||||
Total cash and cash equivalents and marketable securities | 3,292,595 | 2,314,105 | 2,081,232 | ||||||
Residential mortgage loans held-for-sale | 27,411 | 58,786 | 25,140 | ||||||
Residential mortgage loans | 2,962,110 | 3,009,335 | 3,118,229 | ||||||
Home equity loans | 1,350,348 | 1,467,736 | 1,484,365 | ||||||
Consumer loans | 1,816,836 | 1,507,993 | 1,487,083 | ||||||
Commercial real estate loans | 3,162,551 | 3,345,889 | 3,319,743 | ||||||
Commercial loans | 879,712 | 1,191,110 | 1,347,292 | ||||||
Total loans receivable | 10,198,968 | 10,580,849 | 10,781,852 | ||||||
Allowance for credit losses | (109,767) | (134,427) | (140,209) | ||||||
Loans receivable, net | 10,089,201 | 10,446,422 | 10,641,643 | ||||||
FHLB stock, at cost | 14,567 | 21,748 | 23,171 | ||||||
Accrued interest receivable | 26,995 | 35,554 | 36,916 | ||||||
Real estate owned, net | 809 | 2,232 | 2,575 | ||||||
Premises and equipment, net | 155,740 | 161,538 | 166,919 | ||||||
Bank-owned life insurance | 254,871 | 253,951 | 252,621 | ||||||
Goodwill | 380,997 | 382,279 | 386,044 | ||||||
Other intangible assets, net | 14,041 | 19,936 | 21,601 | ||||||
Other assets | 159,419 | 168,503 | 176,083 | ||||||
Total assets | $ | 14,389,235 | 13,806,268 | 13,788,805 | |||||
Liabilities and shareholders' equity | |||||||||
Liabilities | |||||||||
Noninterest-bearing demand deposits | $ | 3,052,115 | 2,716,224 | 2,641,234 | |||||
Interest-bearing demand deposits | 2,926,351 | 2,755,950 | 2,663,878 | ||||||
Money market deposit accounts | 2,584,424 | 2,437,539 | 2,396,567 | ||||||
Savings deposits | 2,271,496 | 2,047,424 | 2,022,918 | ||||||
Time deposits | 1,387,827 | 1,642,096 | 1,732,022 | ||||||
Total deposits | 12,222,213 | 11,599,233 | 11,456,619 | ||||||
Borrowed funds | 126,496 | 159,715 | 274,939 | ||||||
Subordinated debt | 123,486 | 123,329 | 123,277 | ||||||
Junior subordinated debentures | 128,989 | 128,794 | 128,729 | ||||||
Advances by borrowers for taxes and insurance | 26,951 | 45,230 | 29,755 | ||||||
Accrued interest payable | 589 | 2,054 | 1,002 | ||||||
Other liabilities | 198,743 | 209,210 | 227,253 | ||||||
Total liabilities | 12,827,467 | 12,267,565 | 12,241,574 | ||||||
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, 126,521,344, 127,019,452, and 127,801,297 shares issued and outstanding, respectively | 1,265 | 1,270 | 1,278 | ||||||
Additional paid-in capital | 1,008,099 | 1,015,502 | 1,023,827 | ||||||
Retained earnings | 604,787 | 555,480 | 544,695 | ||||||
Accumulated other comprehensive loss | (52,383) | (33,549) | (22,569) | ||||||
Total shareholders' equity | 1,561,768 | 1,538,703 | 1,547,231 | ||||||
Total liabilities and shareholders' equity | $ | 14,389,235 | 13,806,268 | 13,788,805 | |||||
Equity to assets | 10.85 | % | 11.14 | % | 11.22 | % | |||
Tangible common equity to assets* | 8.34 | % | 8.48 | % | 8.52 | % | |||
Book value per share | $ | 12.34 | 12.11 | 12.11 | |||||
Tangible book value per share* | $ | 9.22 | 8.95 | 8.92 | |||||
Closing market price per share | $ | 13.28 | 12.74 | 9.20 | |||||
Full time equivalent employees | 2,404 | 2,421 | 2,523 | ||||||
Number of banking offices | 170 | 170 | 213 | ||||||
* Excludes goodwill and other intangible assets (non-GAAP). |
Northwest Bancshares, Inc. and SubsidiariesConsolidated Statements of Income (Unaudited)(dollars in thousands, except per share amounts) | |||||||||||||||
Quarter ended | |||||||||||||||
September 30,2021 | June 30,2021 | March 31,2021 | December 31,2020 | September 30,2020 | |||||||||||
Interest income: | |||||||||||||||
Loans receivable | $ | 97,475 | 95,255 | 102,318 | 105,681 | 107,241 | |||||||||
Mortgage-backed securities | 5,840 | 5,680 | 4,200 | 4,551 | 4,652 | ||||||||||
Taxable investment securities | 649 | 693 | 634 | 471 | 427 | ||||||||||
Tax-free investment securities | 628 | 594 | 575 | 656 | 655 | ||||||||||
FHLB stock dividends | 71 | 138 | 116 | 192 | 218 | ||||||||||
Interest-earning deposits | 352 | 192 | 183 | 178 | 221 | ||||||||||
Total interest income | 105,015 | 102,552 | 108,026 | 111,729 | 113,414 | ||||||||||
Interest expense: | |||||||||||||||
Deposits | 4,540 | 4,773 | 5,514 | 6,714 | 8,443 | ||||||||||
Borrowed funds | 2,056 | 2,050 | 2,054 | 2,127 | 1,437 | ||||||||||
Total interest expense | 6,596 | 6,823 | 7,568 | 8,841 | 9,880 | ||||||||||
Net interest income | 98,419 | 95,729 | 100,458 | 102,888 | 103,534 | ||||||||||
Provision for credit losses | (4,354) | — | (5,620) | (2,230) | 6,818 | ||||||||||
Net interest income after provision for credit losses | 102,773 | 95,729 | 106,078 | 105,118 | 96,716 | ||||||||||
Noninterest income: | |||||||||||||||
Gain/(loss) on sale of investments | (46) | (105) | (21) | 75 | (12) | ||||||||||
Service charges and fees | 13,199 | 12,744 | 12,394 | 13,074 | 14,354 | ||||||||||
Trust and other financial services income | 7,182 | 7,435 | 6,484 | 5,722 | 5,376 | ||||||||||
Insurance commission income | 44 | 1,043 | 2,546 | 2,034 | 2,331 | ||||||||||
Gain/(loss) on real estate owned, net | 247 | 166 | (42) | 114 | (32) | ||||||||||
Income from bank-owned life insurance | 1,332 | 1,639 | 1,736 | 1,330 | 1,576 | ||||||||||
Mortgage banking income | 3,941 | 3,811 | 6,020 | 7,120 | 11,055 | ||||||||||
Gain on sale of insurance business | — | 25,327 | — | — | — | ||||||||||
Other operating income | 3,287 | 2,648 | 2,836 | 2,654 | 2,022 | ||||||||||
Total noninterest income | 29,186 | 54,708 | 31,953 | 32,123 | 36,670 | ||||||||||
Noninterest expense: | |||||||||||||||
Compensation and employee benefits | 49,063 | 48,894 | 47,239 | 48,209 | 47,371 | ||||||||||
Premises and occupancy costs | 7,745 | 7,410 | 8,814 | 7,614 | 8,342 | ||||||||||
Office operations | 4,143 | 3,317 | 3,165 | 4,009 | 4,626 | ||||||||||
Collections expense | 411 | 303 | 616 | 893 | 1,264 | ||||||||||
Processing expenses | 13,517 | 15,151 | 13,456 | 12,186 | 15,042 | ||||||||||
Marketing expenses | 2,102 | 2,101 | 1,980 | 1,994 | 2,147 | ||||||||||
Federal deposit insurance premiums | 1,184 | 1,353 | 1,307 | 1,651 | 1,498 | ||||||||||
Professional services | 4,295 | 4,231 | 4,582 | 3,599 | 3,246 | ||||||||||
Amortization of intangible assets | 1,321 | 1,433 | 1,594 | 1,664 | 1,781 | ||||||||||
Real estate owned expense | 94 | 85 | 75 | 64 | 111 | ||||||||||
Merger, asset disposition and restructuring expense | — | 632 | 9 | 7,238 | 1,414 | ||||||||||
Other expenses | 2,227 | 1,422 | 3,354 | 3,728 | 27 | ||||||||||
Total noninterest expense | 86,102 | 86,332 | 86,191 | 92,849 | 86,869 | ||||||||||
Income before income taxes | 45,857 | 64,105 | 51,840 | 44,392 | 46,517 | ||||||||||
Income tax expense | 10,794 | 15,138 | 11,603 | 9,327 | 8,467 | ||||||||||
Net income | $ | 35,063 | 48,967 | 40,237 | 35,065 | 38,050 | |||||||||
Basic earnings per share | $ | 0.28 | 0.38 | 0.32 | 0.28 | 0.30 | |||||||||
Diluted earnings per share | $ | 0.27 | 0.38 | 0.32 | 0.28 | 0.30 | |||||||||
Annualized return on average equity | 8.86 | % | 12.58 | % | 10.61 | % | 9.00 | % | 9.82 | % | |||||
Annualized return on average assets | 0.97 | % | 1.37 | % | 1.17 | % | 1.01 | % | 1.09 | % | |||||
Annualized return on tangible common equity * | 11.92 | % | 16.66 | % | 14.31 | % | 12.27 | % | 13.28 | % | |||||
Efficiency ratio ** | 66.44 | % | 67.35 | % | 63.88 | % | 62.18 | % | 59.68 | % | |||||
Annualized noninterest expense to average assets *** | 2.33 | % | 2.35 | % | 2.45 | % | 2.42 | % | 2.39 | % | |||||
* | Excludes goodwill and other intangible assets (non-GAAP). |
** | Excludes gain on sale of insurance business, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). |
*** | Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). |
Northwest Bancshares, Inc. and SubsidiariesConsolidated Statements of Income (Unaudited)(dollars in thousands, except per share amounts) | ||||||
Nine months ended September 30, | ||||||
2021 | 2020 | |||||
Interest income: | ||||||
Loans receivable | $ | 295,048 | 305,226 | |||
Mortgage-backed securities | 15,720 | 12,865 | ||||
Taxable investment securities | 1,976 | 1,514 | ||||
Tax-free investment securities | 1,797 | 1,404 | ||||
FHLB stock dividends | 325 | 789 | ||||
Interest-earning deposits | 727 | 541 | ||||
Total interest income | 315,593 | 322,339 | ||||
Interest expense: | ||||||
Deposits | 14,827 | 29,182 | ||||
Borrowed funds | 6,160 | 4,317 | ||||
Total interest expense | 20,987 | 33,499 | ||||
Net interest income | 294,606 | 288,840 | ||||
Provision for credit losses | (9,974) | 86,205 | ||||
Net interest income after provision for credit losses | 304,580 | 202,635 | ||||
Noninterest income: | ||||||
Gain/(loss) on sale of investments | (172) | 161 | ||||
Gain on sale of loans | — | 1,302 | ||||
Service charges and fees | 38,337 | 42,539 | ||||
Trust and other financial services income | 21,101 | 15,200 | ||||
Insurance commission income | 3,633 | 7,098 | ||||
Gain/(loss) on real estate owned, net | 371 | (220) | ||||
Income from bank-owned life insurance | 4,707 | 3,860 | ||||
Mortgage banking income | 13,772 | 24,271 | ||||
Gain on sale of insurance business | 25,327 | — | ||||
Other operating income | 8,771 | 5,931 | ||||
Total noninterest income | 115,847 | 100,142 | ||||
Noninterest expense: | ||||||
Compensation and employee benefits | 145,196 | 130,166 | ||||
Premises and occupancy costs | 23,969 | 23,008 | ||||
Office operations | 10,625 | 11,719 | ||||
Collections expense | 1,330 | 2,382 | ||||
Processing expenses | 42,124 | 37,864 | ||||
Marketing expenses | 6,183 | 5,701 | ||||
Federal deposit insurance premiums | 3,844 | 3,116 | ||||
Professional services | 13,108 | 8,883 | ||||
Amortization of intangible assets | 4,348 | 5,192 | ||||
Real estate owned expense | 254 | 295 | ||||
Merger, asset disposition and restructuring expense | 641 | 13,551 | ||||
Other expenses | 7,003 | 12,766 | ||||
Total noninterest expense | 258,625 | 254,643 | ||||
Income before income taxes | 161,802 | 48,134 | ||||
Income tax expense | 37,535 | 8,345 | ||||
Net income | $ | 124,267 | 39,789 | |||
Basic earnings per share | $ | 0.98 | 0.34 | |||
Diluted earnings per share | $ | 0.97 | 0.34 | |||
Annualized return on average equity | 10.67 | % | 3.33 | % | ||
Annualized return on average assets | 1.17 | % | 0.42 | % | ||
Annualized return on tangible common equity * | 14.24 | % | 4.66 | % | ||
Efficiency ratio ** | 65.86 | % | 60.65 | % | ||
Annualized noninterest expense to average assets *** | 2.38 | % | 2.50 | % | ||
* | Excludes goodwill and other intangible assets (non-GAAP). |
** | Excludes gain on sale of insurance business, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). |
*** | Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). |
Northwest Bancshares, Inc. and SubsidiariesAsset Quality (Unaudited)(dollars in thousands) | |||||||||||||||
September 30,2021 | June 30,2021 | March 31,2021 | December 31,2020 | September 30,2020 | |||||||||||
Nonaccrual loans current: | |||||||||||||||
Residential mortgage loans | $ | 2,015 | 189 | 164 | 21 | 1,128 | |||||||||
Home equity loans | 1,267 | 170 | 268 | 154 | 366 | ||||||||||
Consumer loans | 1,465 | 188 | 225 | 207 | 234 | ||||||||||
Commercial real estate loans | 111,075 | 138,820 | 146,304 | 20,317 | 22,610 | ||||||||||
Commercial loans | 17,021 | 17,545 | 6,361 | 16,027 | 6,488 | ||||||||||
Total nonaccrual loans current | $ | 132,843 | 156,912 | 153,322 | 36,726 | 30,826 | |||||||||
Nonaccrual loans delinquent 30 days to 59 days: | |||||||||||||||
Residential mortgage loans | $ | 99 | 68 | 1,261 | 647 | 60 | |||||||||
Home equity loans | 328 | 229 | 340 | 338 | 445 | ||||||||||
Consumer loans | 152 | 230 | 254 | 301 | 230 | ||||||||||
Commercial real estate loans | 205 | 1,589 | 965 | 1,416 | 692 | ||||||||||
Commercial loans | 102 | 406 | 1,538 | 87 | 57 | ||||||||||
Total nonaccrual loans delinquent 30 days to 59 days | $ | 886 | 2,522 | 4,358 | 2,789 | 1,484 | |||||||||
Nonaccrual loans delinquent 60 days to 89 days: | |||||||||||||||
Residential mortgage loans | $ | 527 | 207 | 813 | 767 | 576 | |||||||||
Home equity loans | 142 | 310 | 417 | 190 | 618 | ||||||||||
Consumer loans | 291 | 297 | 649 | 583 | 781 | ||||||||||
Commercial real estate loans | 419 | 198 | 1,877 | 714 | 2,745 | ||||||||||
Commercial loans | 170 | 21 | 7,919 | 48 | 15 | ||||||||||
Total nonaccrual loans delinquent 60 days to 89 days | $ | 1,549 | 1,033 | 11,675 | 2,302 | 4,735 | |||||||||
Nonaccrual loans delinquent 90 days or more: | |||||||||||||||
Residential mortgage loans | $ | 8,069 | 10,007 | 9,333 | 14,489 | 14,750 | |||||||||
Home equity loans | 4,745 | 6,256 | 7,044 | 8,441 | 7,845 | ||||||||||
Consumer loans | 2,184 | 2,341 | 3,625 | 5,473 | 5,352 | ||||||||||
Commercial real estate loans | 25,562 | 23,564 | 29,737 | 25,287 | 35,496 | ||||||||||
Commercial loans | 1,104 | 4,126 | 4,860 | 7,325 | 6,310 | ||||||||||
Total nonaccrual loans delinquent 90 days or more | $ | 41,664 | 46,294 | 54,599 | 61,015 | 69,753 | |||||||||
Total nonaccrual loans | $ | 176,942 | 206,761 | 223,954 | 102,832 | 106,798 | |||||||||
Total nonaccrual loans | $ | 176,942 | 206,761 | 223,954 | 102,832 | 106,798 | |||||||||
Loans 90 days past due and still accruing | 386 | 302 | 197 | 585 | 495 | ||||||||||
Nonperforming loans | 177,328 | 207,063 | 224,151 | 103,417 | 107,293 | ||||||||||
Real estate owned, net | 809 | 1,353 | 1,738 | 2,232 | 2,575 | ||||||||||
Nonperforming assets | $ | 178,137 | 208,416 | 225,889 | 105,649 | 109,868 | |||||||||
Nonaccrual troubled debt restructuring * | $ | 12,858 | 8,951 | 7,390 | 10,704 | 17,120 | |||||||||
Accruing troubled debt restructuring | 13,664 | 18,480 | 20,120 | 21,431 | 17,684 | ||||||||||
Total troubled debt restructuring | $ | 26,522 | 27,431 | 27,510 | 32,135 | 34,804 | |||||||||
Nonperforming loans to total loans | 1.74 | % | 2.01 | % | 2.16 | % | 0.98 | % | 1.00 | % | |||||
Nonperforming assets to total assets | 1.24 | % | 1.46 | % | 1.58 | % | 0.77 | % | 0.80 | % | |||||
Allowance for credit losses to total loans | 1.08 | % | 1.14 | % | 1.20 | % | 1.27 | % | 1.30 | % | |||||
Allowance for total loans excluding PPP loan balances | 1.09 | % | 1.17 | % | 1.24 | % | 1.32 | % | 1.36 | % | |||||
Allowance for credit losses to nonperforming loans | 61.90 | % | 56.66 | % | 55.32 | % | 129.99 | % | 130.68 | % | |||||
* Amounts included in nonperforming loans above. |
Northwest Bancshares, Inc. and SubsidiariesLoans by Credit Quality Indicators (Unaudited)(dollars in thousands) | |||||||||||||||||||
At September 30, 2021 | Pass | Special mention * | Substandard ** | Doubtful | Loss | Loans receivable | |||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,972,489 | — | 17,032 | — | — | 2,989,521 | ||||||||||||
Home equity loans | 1,342,479 | — | 7,869 | — | — | 1,350,348 | |||||||||||||
Consumer loans | 1,812,360 | — | 4,476 | — | — | 1,816,836 | |||||||||||||
Total Personal Banking | 6,127,328 | — | 29,377 | — | — | 6,156,705 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,799,592 | 63,034 | 299,925 | — | — | 3,162,551 | |||||||||||||
Commercial loans | 813,665 | 10,976 | 55,071 | — | — | 879,712 | |||||||||||||
Total Commercial Banking | 3,613,257 | 74,010 | 354,996 | — | — | 4,042,263 | |||||||||||||
Total loans | $ | 9,740,585 | 74,010 | 384,373 | — | — | 10,198,968 | ||||||||||||
At June 30, 2021 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,937,418 | — | 17,133 | — | — | 2,954,551 | ||||||||||||
Home equity loans | 1,367,765 | — | 8,463 | — | — | 1,376,228 | |||||||||||||
Consumer loans | 1,741,872 | — | 3,359 | — | — | 1,745,231 | |||||||||||||
Total Personal Banking | 6,047,055 | — | 28,955 | — | — | 6,076,010 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,781,734 | 73,167 | 360,288 | — | — | 3,215,189 | |||||||||||||
Commercial loans | 943,665 | 11,266 | 63,850 | — | — | 1,018,781 | |||||||||||||
Total Commercial Banking | 3,725,399 | 84,433 | 424,138 | — | — | 4,233,970 | |||||||||||||
Total loans | $ | 9,772,454 | 84,433 | 453,093 | — | — | 10,309,980 | ||||||||||||
At March 31, 2021 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,950,103 | — | 21,575 | — | — | 2,971,678 | ||||||||||||
Home equity loans | 1,396,757 | — | 10,767 | — | — | 1,407,524 | |||||||||||||
Consumer loans | 1,547,502 | — | 6,853 | — | — | 1,554,355 | |||||||||||||
Total Personal Banking | 5,894,362 | — | 39,195 | — | — | 5,933,557 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,801,082 | 120,345 | 368,009 | — | — | 3,289,436 | |||||||||||||
Commercial loans | 1,061,884 | 22,623 | 60,540 | — | — | 1,145,047 | |||||||||||||
Total Commercial Banking | 3,862,966 | 142,968 | 428,549 | — | — | 4,434,483 | |||||||||||||
Total loans | $ | 9,757,328 | 142,968 | 467,744 | — | — | 10,368,040 | ||||||||||||
At December 31, 2020 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 3,042,544 | — | 25,577 | — | — | 3,068,121 | ||||||||||||
Home equity loans | 1,455,474 | — | 12,262 | — | — | 1,467,736 | |||||||||||||
Consumer loans | 1,499,004 | — | 8,989 | — | — | 1,507,993 | |||||||||||||
Total Personal Banking | 5,997,022 | — | 46,828 | — | — | 6,043,850 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,852,705 | 108,021 | 385,163 | — | — | 3,345,889 | |||||||||||||
Commercial loans | 1,092,498 | 41,278 | 57,334 | — | — | 1,191,110 | |||||||||||||
Total Commercial Banking | 3,945,203 | 149,299 | 442,497 | — | — | 4,536,999 | |||||||||||||
Total loans | $ | 9,942,225 | 149,299 | 489,325 | — | — | 10,580,849 | ||||||||||||
At September 30, 2020 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 3,117,442 | — | 25,927 | — | — | 3,143,369 | ||||||||||||
Home equity loans | 1,471,919 | — | 12,446 | — | — | 1,484,365 | |||||||||||||
Consumer loans | 1,478,109 | — | 8,974 | — | — | 1,487,083 | |||||||||||||
Total Personal Banking | 6,067,470 | — | 47,347 | — | — | 6,114,817 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,850,611 | 110,073 | 359,059 | — | — | 3,319,743 | |||||||||||||
Commercial loans | 1,255,255 | 40,631 | 51,406 | — | — | 1,347,292 | |||||||||||||
Total Commercial Banking | 4,105,866 | 150,704 | 410,465 | — | — | 4,667,035 | |||||||||||||
Total loans | $ | 10,173,336 | 150,704 | 457,812 | — | — | 10,781,852 | ||||||||||||
* | Includes $16.7 million, $16.7 million, $26.4 million, $31.3 million, and $34.7 million of acquired loans at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively. |
** | Includes $110.4 million, $122.5 million, $143.2 million, $153.2 million, and $129.2 million of acquired loans at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively. |
Northwest Bancshares, Inc. and SubsidiariesLoan Delinquency (Unaudited)(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
September 30,2021 | * | June 30,2021 | * | March 31,2021 | * | December 31,2020 | * | September 30,2020 | * | ||||||||||||||||||||||||||||||||||||||||
(Number of loans and dollar amount of loans) | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30 days to 59 days: | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 17 | $ | 765 | — | % | 13 | $ | 606 | — | % | 248 | $ | 22,236 | 0.7 | % | 315 | $ | 28,797 | 0.9 | % | 17 | $ | 736 | — | % | ||||||||||||||||||||||||
Home equity loans | 101 | 3,351 | 0.2 | % | 91 | 3,677 | 0.3 | % | 84 | 3,334 | 0.2 | % | 138 | 4,763 | 0.3 | % | 129 | 4,984 | 0.3 | % | |||||||||||||||||||||||||||||
Consumer loans | 576 | 6,146 | 0.3 | % | 532 | 5,571 | 0.3 | % | 535 | 5,732 | 0.4 | % | 1,279 | 10,574 | 0.7 | % | 1,078 | 8,586 | 0.6 | % | |||||||||||||||||||||||||||||
Commercial real estate loans | 19 | 2,004 | 0.1 | % | 13 | 2,857 | 0.1 | % | 33 | 12,240 | 0.4 | % | 43 | 10,923 | 0.3 | % | 28 | 5,090 | 0.2 | % | |||||||||||||||||||||||||||||
Commercial loans | 10 | 692 | 0.1 | % | 15 | 686 | 0.1 | % | 16 | 3,032 | 0.3 | % | 37 | 6,405 | 0.5 | % | 19 | 1,797 | 0.1 | % | |||||||||||||||||||||||||||||
Total loans delinquent 30 days to 59 days | 723 | $ | 12,958 | 0.1 | % | 664 | $ | 13,397 | 0.1 | % | 916 | $ | 46,574 | 0.4 | % | 1,812 | $ | 61,462 | 0.6 | % | 1,271 | $ | 21,193 | 0.2 | % | ||||||||||||||||||||||||
Loans delinquent 60 days to 89 days: | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 55 | $ | 4,907 | 0.2 | % | 58 | $ | 4,051 | 0.1 | % | 26 | $ | 2,062 | 0.1 | % | 84 | $ | 5,083 | 0.2 | % | 65 | $ | 4,788 | 0.2 | % | ||||||||||||||||||||||||
Home equity loans | 29 | 1,024 | 0.1 | % | 36 | 1,502 | 0.1 | % | 31 | 953 | 0.1 | % | 47 | 1,656 | 0.1 | % | 56 | 1,860 | 0.1 | % | |||||||||||||||||||||||||||||
Consumer loans | 180 | 1,757 | 0.1 | % | 181 | 1,988 | 0.1 | % | 169 | 1,868 | 0.1 | % | 322 | 2,742 | 0.2 | % | 323 | 3,049 | 0.2 | % | |||||||||||||||||||||||||||||
Commercial real estate loans | 8 | 1,170 | — | % | 9 | 1,335 | — | % | 14 | 7,609 | 0.2 | % | 11 | 1,615 | — | % | 14 | 4,212 | 0.1 | % | |||||||||||||||||||||||||||||
Commercial loans | 2 | 170 | — | % | 2 | 27 | — | % | 12 | 8,979 | 0.8 | % | 10 | 864 | 0.1 | % | 7 | 357 | — | % | |||||||||||||||||||||||||||||
Total loans delinquent 60 days to 89 days | 274 | $ | 9,028 | 0.1 | % | 286 | $ | 8,903 | 0.1 | % | 252 | $ | 21,471 | 0.2 | % | 474 | $ | 11,960 | 0.1 | % | 465 | $ | 14,266 | 0.1 | % | ||||||||||||||||||||||||
Loans delinquent 90 days or more: ** | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 95 | $ | 8,069 | 0.3 | % | 115 | $ | 10,007 | 0.3 | % | 121 | $ | 9,333 | 0.3 | % | 168 | $ | 14,489 | 0.5 | % | 168 | $ | 14,750 | 0.5 | % | ||||||||||||||||||||||||
Home equity loans | 119 | 4,745 | 0.4 | % | 146 | 6,256 | 0.5 | % | 176 | 7,044 | 0.5 | % | 207 | 8,441 | 0.6 | % | 193 | 7,845 | 0.5 | % | |||||||||||||||||||||||||||||
Consumer loans | 308 | 2,568 | 0.1 | % | 356 | 2,643 | 0.2 | % | 454 | 3,822 | 0.2 | % | 720 | 6,058 | 0.4 | % | 696 | 5,847 | 0.4 | % | |||||||||||||||||||||||||||||
Commercial real estate loans | 59 | 25,562 | 0.8 | % | 83 | 23,564 | 0.7 | % | 113 | 29,737 | 0.9 | % | 119 | 25,287 | 0.8 | % | 136 | 35,496 | 1.1 | % | |||||||||||||||||||||||||||||
Commercial loans | 10 | 1,104 | 0.1 | % | 18 | 4,126 | 0.4 | % | 31 | 4,860 | 0.4 | % | 37 | 7,325 | 0.6 | % | 34 | 6,310 | 0.5 | % | |||||||||||||||||||||||||||||
Total loans delinquent 90 days or more | 591 | $ | 42,048 | 0.4 | % | 718 | $ | 46,596 | 0.5 | % | 895 | $ | 54,796 | 0.5 | % | 1,251 | $ | 61,600 | 0.6 | % | 1,227 | $ | 70,248 | 0.7 | % | ||||||||||||||||||||||||
Total loans delinquent | 1,588 | $ | 64,034 | 0.6 | % | 1,668 | $ | 68,896 | 0.7 | % | 2,063 | $ | 122,841 | 1.2 | % | 3,537 | $ | 135,022 | 1.3 | % | 2,963 | $ | 105,707 | 1.0 | % | ||||||||||||||||||||||||
* | Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding. |
** | Includes purchased credit deteriorated loans of $8.4 million, $10.3 million, $12.7 million, $6.6 million, and $20.3 million at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively. |
Northwest Bancshares, Inc. and SubsidiariesAllowance for Credit Losses (Unaudited)(dollars in thousands) | ||||||||||||||||||
Quarter ended | ||||||||||||||||||
September 30,2021 | June 30,2021 | March 31,2021 | December 31,2020 | September 30,2020 | ||||||||||||||
Beginning balance | $ | 117,330 | 123,997 | 134,427 | 140,209 | 140,586 | ||||||||||||
Provision | (4,354) | — | (5,620) | (2,230) | 6,818 | |||||||||||||
Charge-offs residential mortgage | (1,263) | (770) | (855) | (407) | (129) | |||||||||||||
Charge-offs home equity | (1,474) | (379) | (228) | (58) | (88) | |||||||||||||
Charge-offs consumer | (2,148) | (2,401) | (2,603) | (2,623) | (3,356) | |||||||||||||
Charge-offs commercial real estate | (1,581) | (3,964) | (4,626) | (2,770) | (532) | |||||||||||||
Charge-offs commercial | (412) | (1,161) | (54) | (156) | (4,892) | |||||||||||||
Recoveries | 3,669 | 2,008 | 3,556 | 2,462 | 1,802 | |||||||||||||
Ending balance | $ | 109,767 | 117,330 | 123,997 | 134,427 | 140,209 | ||||||||||||
Net charge-offs to average loans, annualized | 0.12 | % | 0.26 | % | 0.19 | % | 0.13 | % | 0.27 | % | ||||||||
Nine months ended September 30, 2021 | ||||||||||||||||||
2021 | 2020 | |||||||||||||||||
Beginning balance | $ | 134,427 | 57,941 | |||||||||||||||
CECL adoption | — | 10,792 | ||||||||||||||||
Initial allowance on loans purchased with credit deterioration | — | 8,845 | ||||||||||||||||
Provision | (9,974) | 86,205 | ||||||||||||||||
Charge-offs residential mortgage | (2,888) | (510) | ||||||||||||||||
Charge-offs home equity | (2,081) | (550) | ||||||||||||||||
Charge-offs consumer | (7,152) | (10,035) | ||||||||||||||||
Charge-offs commercial real estate | (10,171) | (1,553) | ||||||||||||||||
Charge-offs commercial | (1,627) | (16,056) | ||||||||||||||||
Recoveries | 9,233 | 5,130 | ||||||||||||||||
Ending balance | $ | 109,767 | 140,209 | |||||||||||||||
Net charge-offs to average loans, annualized | 0.19 | % | 0.32 | % | ||||||||||||||
September 30, 2021 | ||||||||||||||||||
Originated loans | Acquired loans | Total loans | ||||||||||||||||
Balance | Reserve | Balance | Reserve | Balance | Reserve | |||||||||||||
Residential mortgage loans | $ | 2,756,383 | 6,886 | 233,138 | 1,101 | 2,989,521 | 7,987 | |||||||||||
Home equity loans | 1,122,611 | 4,748 | 227,737 | 1,545 | 1,350,348 | 6,293 | ||||||||||||
Consumer loans | 1,655,827 | 13,914 | 161,009 | 1,617 | 1,816,836 | 15,531 | ||||||||||||
Personal Banking Loans | 5,534,821 | 25,548 | 621,884 | 4,263 | 6,156,705 | 29,811 | ||||||||||||
Commercial real estate loans | 2,594,414 | 49,842 | 568,137 | 11,855 | 3,162,551 | 61,697 | ||||||||||||
Commercial loans | 786,111 | 11,832 | 93,601 | 6,427 | 879,712 | 18,259 | ||||||||||||
Commercial Banking Loans | 3,380,525 | 61,674 | 661,738 | 18,282 | 4,042,263 | 79,956 | ||||||||||||
Total Loans | $ | 8,915,346 | 87,222 | 1,283,622 | 22,545 | 10,198,968 | 109,767 | |||||||||||
Northwest Bancshares, Inc. and SubsidiariesAverage Balance Sheet (Unaudited)(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages. | |||||||||||||||||||||||||||||||||||||||||||||||||
Quarter ended | |||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | $ | 2,959,794 | 25,398 | 3.43 | % | $ | 2,935,034 | 25,609 | 3.49 | % | $ | 3,007,439 | 26,366 | 3.51 | % | $ | 3,089,916 | 27,503 | 3.56 | % | $ | 3,176,436 | 28,769 | 3.62 | % | ||||||||||||||||||||||||
Home equity loans | 1,356,131 | 11,993 | 3.51 | % | 1,380,794 | 12,232 | 3.55 | % | 1,432,009 | 12,815 | 3.63 | % | 1,472,527 | 13,535 | 3.66 | % | 1,479,429 | 13,732 | 3.69 | % | |||||||||||||||||||||||||||||
Consumer loans | 1,728,563 | 16,220 | 3.72 | % | 1,589,739 | 14,555 | 3.67 | % | 1,463,284 | 14,566 | 4.04 | % | 1,444,860 | 15,874 | 4.37 | % | 1,437,828 | 15,851 | 4.39 | % | |||||||||||||||||||||||||||||
Commercial real estate loans | 3,205,839 | 35,305 | 4.31 | % | 3,257,810 | 33,349 | 4.05 | % | 3,313,892 | 38,471 | 4.64 | % | 3,317,418 | 37,965 | 4.48 | % | 3,306,386 | 36,887 | 4.37 | % | |||||||||||||||||||||||||||||
Commercial loans | 975,603 | 9,096 | 3.65 | % | 1,133,969 | 9,978 | 3.48 | % | 1,189,812 | 10,566 | 3.55 | % | 1,325,047 | 11,414 | 3.37 | % | 1,377,223 | 12,603 | 3.58 | % | |||||||||||||||||||||||||||||
Total loans receivable (a) (b) (d) | 10,225,930 | 98,012 | 3.80 | % | 10,297,346 | 95,723 | 3.73 | % | 10,406,436 | 102,784 | 4.01 | % | 10,649,768 | 106,291 | 3.97 | % | 10,777,302 | 107,842 | 3.98 | % | |||||||||||||||||||||||||||||
Mortgage-backed securities (c) | 1,832,876 | 5,840 | 1.27 | % | 1,756,227 | 5,680 | 1.29 | % | 1,324,558 | 4,200 | 1.27 | % | 1,166,739 | 4,551 | 1.56 | % | 1,004,803 | 4,651 | 1.85 | % | |||||||||||||||||||||||||||||
Investment securities (c) (d) | 348,619 | 1,466 | 1.68 | % | 364,414 | 1,466 | 1.61 | % | 331,358 | 1,381 | 1.67 | % | 252,898 | 1,380 | 2.18 | % | 216,081 | 1,336 | 2.47 | % | |||||||||||||||||||||||||||||
FHLB stock, at cost | 21,607 | 71 | 1.31 | % | 23,107 | 138 | 2.40 | % | 21,811 | 116 | 2.17 | % | 23,346 | 192 | 3.27 | % | 25,595 | 218 | 3.39 | % | |||||||||||||||||||||||||||||
Other interest-earning deposits | 905,130 | 352 | 0.15 | % | 810,741 | 192 | 0.09 | % | 801,119 | 183 | 0.09 | % | 632,494 | 178 | 0.11 | % | 791,601 | 221 | 0.11 | % | |||||||||||||||||||||||||||||
Total interest-earning assets | 13,334,162 | 105,741 | 3.15 | % | 13,251,835 | 103,199 | 3.12 | % | 12,885,282 | 108,664 | 3.42 | % | 12,725,245 | 112,592 | 3.52 | % | 12,815,382 | 114,268 | 3.55 | % | |||||||||||||||||||||||||||||
Noninterest-earning assets (e) | 1,074,122 | 1,104,924 | 1,102,477 | 1,066,609 | 1,088,273 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 14,408,284 | $ | 14,356,759 | $ | 13,987,759 | $ | 13,791,854 | $ | 13,903,655 | |||||||||||||||||||||||||||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Savings deposits | $ | 2,271,365 | 603 | 0.11 | % | $ | 2,255,578 | 590 | 0.10 | % | $ | 2,118,030 | 625 | 0.12 | % | $ | 2,028,155 | 617 | 0.12 | % | $ | 2,015,604 | 648 | 0.13 | % | ||||||||||||||||||||||||
Interest-bearing demand deposits | 2,890,905 | 414 | 0.06 | % | 2,840,949 | 407 | 0.06 | % | 2,783,429 | 429 | 0.06 | % | 2,699,515 | 476 | 0.07 | % | 2,680,591 | 763 | 0.11 | % | |||||||||||||||||||||||||||||
Money market deposit accounts | 2,565,159 | 637 | 0.10 | % | 2,537,629 | 621 | 0.10 | % | 2,497,495 | 657 | 0.11 | % | 2,426,513 | 960 | 0.16 | % | 2,347,097 | 1,347 | 0.23 | % | |||||||||||||||||||||||||||||
Time deposits | 1,423,041 | 2,886 | 0.80 | % | 1,493,947 | 3,155 | 0.85 | % | 1,583,525 | 3,803 | 0.97 | % | 1,676,094 | 4,660 | 1.11 | % | 1,782,350 | 5,685 | 1.27 | % | |||||||||||||||||||||||||||||
Borrowed funds (f) | 131,199 | 154 | 0.47 | % | 131,240 | 150 | 0.46 | % | 143,806 | 154 | 0.43 | % | 229,109 | 213 | 0.37 | % | 419,375 | 411 | 0.55 | % | |||||||||||||||||||||||||||||
Subordinated debt (g) | 123,513 | 1,277 | 4.10 | % | 123,443 | 1,264 | 4.11 | % | 123,357 | 1,258 | 4.14 | % | 123,283 | 1,256 | 4.05 | % | 1,340 | 306 | N/M | ||||||||||||||||||||||||||||||
Junior subordinated debentures | 128,946 | 625 | 1.90 | % | 128,882 | 636 | 1.95 | % | 128,817 | 642 | 1.99 | % | 128,752 | 659 | 2.00 | % | 128,658 | 720 | 2.19 | % | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 9,534,128 | 6,596 | 0.27 | % | 9,511,668 | 6,823 | 0.29 | % | 9,378,459 | 7,568 | 0.33 | % | 9,311,421 | 8,841 | 0.38 | % | 9,375,015 | 9,880 | 0.42 | % | |||||||||||||||||||||||||||||
Noninterest-bearing demand deposits (h) | 3,058,819 | 3,036,202 | 2,805,206 | 2,675,986 | 2,703,266 | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing liabilities | 244,402 | 247,930 | 265,667 | 253,966 | 284,440 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 12,837,349 | 12,795,800 | 12,449,332 | 12,241,373 | 12,362,721 | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity | 1,570,935 | 1,560,959 | 1,538,427 | 1,550,481 | 1,540,934 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 14,408,284 | $ | 14,356,759 | $ | 13,987,759 | $ | 13,791,854 | $ | 13,903,655 | |||||||||||||||||||||||||||||||||||||||
Net interest income/Interest rate spread | 99,145 | 2.87 | % | 96,376 | 2.84 | % | 101,096 | 3.09 | % | 103,751 | 3.14 | % | 104,388 | 3.13 | % | ||||||||||||||||||||||||||||||||||
Net interest-earning assets/Net interest margin | $ | 3,800,034 | 2.97 | % | $ | 3,740,167 | 2.91 | % | $ | 3,506,823 | 3.18 | % | $ | 3,413,824 | 3.26 | % | $ | 3,440,367 | 3.26 | % | |||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.40X | 1.39X | 1.37X | 1.37X | 1.37X | ||||||||||||||||||||||||||||||||||||||||||||
(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) | On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity of September 15, 2030. |
(h) | Average cost of deposits were 0.15%, 0.16%, 0.19%, 0.23%, and 0.29%, respectively. |
(i) | Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans — 3.79%, 3.71%, 3.99%, 3.94%, and 3.96%, respectively, Investment securities — 1.47%, 1.41%, 1.46%, 1.78%, and 2.00%, respectively, Interest-earning assets — 3.13%, 3.10%, 3.40%, 3.48%, and 3.52%, respectively. GAAP basis net interest rate spreads were 2.86%, 2.82%, 3.07%, 3.11%, and 3.10%, respectively, and GAAP basis net interest margins were 2.95%, 2.89%, 3.16%, 3.23%, and 3.23%, respectively. |
Northwest Bancshares, Inc. and SubsidiariesAverage Balance Sheet (Unaudited)(in thousands) | |||||||||||||||||||
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages. | |||||||||||||||||||
Nine months ended September 30, | |||||||||||||||||||
2021 | 2020 | ||||||||||||||||||
Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | ||||||||||||||
Assets | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Residential mortgage loans | $ | 2,967,248 | 77,373 | 3.48 | % | $ | 3,038,712 | 85,850 | 3.77 | % | |||||||||
Home equity loans | 1,389,367 | 37,039 | 3.55 | % | 1,424,580 | 42,340 | 3.97 | % | |||||||||||
Consumer loans | 1,594,834 | 45,341 | 3.79 | % | 1,302,282 | 43,004 | 4.41 | % | |||||||||||
Commercial real estate loans | 3,258,785 | 107,124 | 4.32 | % | 3,071,047 | 102,918 | 4.40 | % | |||||||||||
Commercial loans | 1,099,010 | 29,640 | 3.54 | % | 1,084,739 | 32,727 | 3.96 | % | |||||||||||
Loans receivable (a) (b) (d) | 10,309,244 | 296,517 | 3.83 | % | 9,921,360 | 306,839 | 4.13 | % | |||||||||||
Mortgage-backed securities (c) | 1,639,749 | 15,720 | 1.28 | % | 796,739 | 12,865 | 2.15 | % | |||||||||||
Investment securities (c) (d) | 348,193 | 4,313 | 1.65 | % | 176,991 | 3,461 | 2.61 | % | |||||||||||
FHLB stock, at cost | 22,174 | 325 | 1.95 | % | 21,255 | 789 | 4.96 | % | |||||||||||
Other interest-earning deposits | 838,997 | 727 | 0.11 | % | 483,390 | 541 | 0.15 | % | |||||||||||
Total interest-earning assets | 13,158,357 | 317,602 | 3.22 | % | 11,399,735 | 324,495 | 3.80 | % | |||||||||||
Noninterest-earning assets (e) | 1,094,117 | 1,190,283 | |||||||||||||||||
Total assets | $ | 14,252,474 | $ | 12,590,018 | |||||||||||||||
Liabilities and shareholders' equity | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Savings deposits | $ | 2,215,553 | 1,818 | 0.11 | % | $ | 1,837,624 | 2,023 | 0.15 | % | |||||||||
Interest-bearing demand deposits | 2,838,822 | 1,250 | 0.06 | % | 2,342,748 | 2,882 | 0.16 | % | |||||||||||
Money market deposit accounts | 2,533,676 | 1,914 | 0.10 | % | 2,157,212 | 6,035 | 0.37 | % | |||||||||||
Time deposits | 1,499,583 | 9,845 | 0.87 | % | 1,691,168 | 18,243 | 1.44 | % | |||||||||||
Borrowed funds (f) | 135,369 | 458 | 0.45 | % | 344,007 | 1,415 | 0.55 | % | |||||||||||
Subordinated debt (g) | 123,438 | 3,799 | 4.10 | % | 450 | 306 | N/M | ||||||||||||
Junior subordinated debentures | 128,882 | 1,903 | 1.94 | % | 125,988 | 2,595 | 2.71 | % | |||||||||||
Total interest-bearing liabilities | 9,475,323 | 20,987 | 0.30 | % | 8,499,197 | 33,499 | 0.53 | % | |||||||||||
Noninterest-bearing demand deposits (h) | 2,967,672 | 2,250,864 | |||||||||||||||||
Noninterest-bearing liabilities | 252,587 | 243,705 | |||||||||||||||||
Total liabilities | 12,695,582 | 10,993,766 | |||||||||||||||||
Shareholders' equity | 1,556,892 | 1,596,252 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 14,252,474 | $ | 12,590,018 | |||||||||||||||
Net interest income/Interest rate spread | 296,615 | 2.92 | % | 290,996 | 3.27 | % | |||||||||||||
Net interest-earning assets/Net interest margin | $ | 3,683,034 | 3.01 | % | $ | 2,900,538 | 3.40 | % | |||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.39X | 1.34X | |||||||||||||||||
(a) | Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status. |
(b) | Interest income includes accretion/amortization of deferred loan fees/expenses, which were not material. |
(c) | Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale. |
(d) | Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis. |
(e) | Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
(f) | Average balances include FHLB borrowings and collateralized borrowings. |
(g) | On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity of September 15, 2030. |
(h) | Average cost of deposits were 0.16% and 0.38%, respectively. |
(i) | Shown on a FTE basis. GAAP basis yields were: Loans — 3.82% and 4.11%, respectively; Investment securities — 1.44% and 2.20%, respectively; Interest-earning assets — 3.20% and 3.78%, respectively. GAAP basis net interest rate spreads were 2.91% and 3.25%, respectively; and GAAP basis net interest margins were 2.99% and 3.38%, respectively. |
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SOURCE Northwest Bancshares, Inc.