NWBI
$17.01
Northwest Bancshares
$.04
.24%
Earnings Details
3rd Quarter September 2019
Monday, October 21, 2019 9:00:00 AM
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Summary

Northwest Bancshares (NWBI) Recent Earnings

Northwest Bancshares (NWBI) reported 3rd Quarter September 2019 earnings of $0.31 per share on revenue of $133.0 million. The consensus earnings estimate was $0.26 per share on revenue of $118.8 million. Revenue grew 12.6% on a year-over-year basis.

Northwest Bancshares Inc through its subsidiary offers personal and business deposit and loan products through its 162 banking locations in Pennsylvania, New York, Ohio and Maryland.

Results
Reported Earnings
$0.31
Earnings Whisper
-
Consensus Estimate
$0.26
Reported Revenue
$133.0 Mil
Revenue Estimate
$118.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Northwest Bancshares, Inc. Announces Third Quarter 2019 Earnings and Quarterly Dividend

WARREN, Pa., Oct. 21, 2019 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2019 of $33.4 million, or $0.31 per diluted share.  This represents an increase of $5.7 million, or 20.5%, compared to the same quarter last year when net income was $27.7 million or $0.27 per diluted share.  The annualized returns on average shareholders' equity and average assets for the quarter ended September 30, 2019 were 9.90% and 1.25% compared to 8.93% and 1.15% for the same quarter last year.

Northwest Bank (PRNewsfoto/Northwest Bank)

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.18 per share payable on November 15, 2019 to shareholders of record as of November 1, 2019.   This is the 100th consecutive quarter in which the Company has paid a cash dividend.  Based on the market value of the Company's stock as of September 30, 2019, this represents an annualized dividend yield of approximately 4.39%.

In making this announcement, Ronald J. Seiffert, Chairman, President and CEO, noted, "We were very pleased with the record earnings that we achieved this quarter despite the continued challenges that we, and the rest of the industry, are experiencing with net interest margin compression as a result of the inverted yield curve.  Our annualized loan growth is steady at mid-single digits and diversified among all loan categories.  In addition, we are encouraged with the expansion of our mortgage banking capabilities which will continue to enhance core fee income."  Mr. Seiffert continued, "As always, we continue to focus on efficiency.  We were very pleased with the progress that we made this quarter as almost all expense categories showed improvement over the linked second quarter. As a result, our efficiency ratio for the quarter decreased to 58.8%."

Net interest income increased by $5.1 million, or 6.0%, to $90.9 million for the quarter ended September 30, 2019, from $85.8 million for the quarter ended September 30, 2018, primarily due to a $10.4 million, or 11.4%, increase in interest income on loans receivable.  This increase was primarily due to an increase of $819.2 million, or 10.3%, in the average balance of loans.  Partially offsetting this improvement was an increase in interest expense on deposits of $5.5 million, or 66.3%, due to recent increases in market interest rates, resulting in an increase in the cost of our interest-bearing liabilities to 0.89% from 0.60%.  The net impact of these changes caused the Company's net interest margin to decrease to 3.79% for the quarter ended September 30, 2019 from 3.92% for the same quarter last year.

The provision for loan losses decreased by $3.7 million, or 52.7%, to $3.3 million for the quarter ended September 30, 2019, from $7.0 million for the quarter ended September 30, 2018.  The provision was elevated in the prior year due primarily to a $4.6 million write-down of a land development loan in the third quarter of 2018.

Noninterest income increased by $3.6 million, or 16.0%, to $26.2 million for the quarter ended September 30, 2019, from $22.6 million for the quarter ended September 30, 2018.  This increase was due to a $1.8 million increase in mortgage banking income as a result of expanding our secondary market sales capabilities.  In addition, there was a $696,000, or 38.6%, increase in other operating income from increases in swap income and Visa dividend income, a $400,000, or 3.0%, increase in service charges and fees as a result of increased customer activity from the Union Community Bank ("UCB") acquisition, and a $355,000, or 8.3%, increase in trust and other financial services income due to new brokerage production.  In addition, we recognized a gain of $826,000 in the current quarter on the sale of approximately $50 million of one- to four- family mortgage loans from our portfolio.  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 $4.0 million, or 6.0%, to $70.6 million for the quarter ended September 30, 2019, from $66.6 million for the quarter ended September 30, 2018.  This increase resulted primarily from a $3.3 million, or 8.7%, increase in compensation and employee benefits due to both internal growth in compensation and staff as well as the addition of UCB employees. In addition, processing expenses increased by $1.5 million, or 15.6%, as we continue to invest in technology and infrastructure and refresh our loan origination platforms.  Partially offsetting this increase was a decrease in federal deposit insurance premiums of $1.4 million due to an assessment credit received during the quarter as a result of the deposit insurance fund becoming fully funded.

Net income for the nine-month period ended September 30, 2019 was $84.8 million, or $0.80 per diluted share.  This represents an increase of $5.8 million, or 7.4%, compared to the nine-month period ended September 30, 2018, when net income was $79.0 million, or $0.76 per diluted share.  The annualized returns on average shareholders' equity and average assets for the nine-month period ended September 30, 2019 were 8.65% and 1.10% compared to 8.67% and 1.11% for the same period last year.  This increase in net income was the result of an increase in net interest income after provision of $21.8 million, or 9.3%, which was partially offset by an increase in noninterest expense of $15.7 million, or 7.7%.  Contributing to the additional expense is the added cost of UCB operations, including new marketing 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.

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 ten 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)



September 30,

 2019


December 31,

 2018


September 30,

 2018

Assets






Cash and cash equivalents

$

107,602



68,789



73,946


Marketable securities available-for-sale (amortized cost of $801,465, $811,015 and $829,345, respectively)

807,823



801,450



811,556


Marketable securities held-to-maturity (fair value of $19,237, $22,446 and $23,534, respectively)

18,958



22,765



24,222


Total cash and cash equivalents and marketable securities

934,383



893,004



909,724








Residential mortgage loans held-for-sale

8,859






Residential mortgage loans

2,887,274



2,864,470



2,846,834


Home equity loans

1,328,173



1,258,422



1,272,345


Consumer loans

1,094,293



859,713



776,049


Commercial real estate loans

2,812,839



2,471,821



2,518,066


Commercial loans

720,579



597,013



582,768


Total loans receivable

8,852,017



8,051,439



7,996,062


Allowance for loan losses

(52,859)



(55,214)



(55,975)


Loans receivable, net

8,799,158



7,996,225



7,940,087








Federal Home Loan Bank stock, at cost

21,401



15,635



15,452


Accrued interest receivable

27,069



24,490



25,798


Real estate owned, net

1,237



2,498



2,486


Premises and equipment, net

148,796



143,390



144,612


Bank-owned life insurance

187,971



171,079



170,042


Goodwill

344,720



307,420



307,420


Other intangible assets

22,410



19,821



21,167


Other assets

93,329



34,211



38,543


Total assets

$

10,580,474



9,607,773



9,575,331


Liabilities and shareholders' equity






Liabilities






Noninterest-bearing demand deposits

$

1,905,650



1,736,156



1,724,202


Interest-bearing demand deposits

1,678,644



1,455,460



1,499,344


Money market deposit accounts

1,828,001



1,661,623



1,676,845


Savings deposits

1,635,754



1,636,099



1,650,357


Time deposits

1,633,451



1,404,841



1,403,205


Total deposits

8,681,500



7,894,179



7,953,953








Borrowed funds

255,257



234,389



179,117


Junior subordinated debentures

121,787



111,213



111,213


Advances by borrowers for taxes and insurance

24,331



43,298



23,297


Accrued interest payable

1,314



744



627


Other liabilities

144,515



66,312



66,448


Total liabilities

9,228,704



8,350,135



8,334,655


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, 106,658,067, 103,354,030, and 103,293,480 shares issued and outstanding, respectively

1,067



1,034



1,033


Paid-in capital

801,382



745,926



742,863


Retained earnings

577,018



550,374



541,469


Accumulated other comprehensive loss

(27,697)



(39,696)



(44,689)


Total shareholders' equity

1,351,770



1,257,638



1,240,676


Total liabilities and shareholders' equity

$

10,580,474



9,607,773



9,575,331








Equity to assets

12.78

%


13.09

%


12.96

%

Tangible common equity to assets

9.64

%


10.03

%


9.86

%

Book value per share

$

12.67



12.17



12.01


Tangible book value per share

$

9.23



9.00



8.83


Closing market price per share

$

16.39



16.94



17.32


Full time equivalent employees

2,218



2,128



2,133


Number of banking offices

182



172



172


 

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)



Quarter ended


September 30,
2019


June 30,

2019


March 31,
2019


December 31,
2018


September 30,
2018






Interest income:










Loans receivable

$

101,091



100,917



94,935



92,512



90,733


Mortgage-backed securities

4,188



4,280



3,965



3,942



3,572


Taxable investment securities

884



898



936



924



814


Tax-free investment securities

224



237



182



170



205


FHLB dividends

307



316



171



151



119


Interest-earning deposits

172



159



100



69



162


Total interest income

106,866



106,807



100,289



97,768



95,605


Interest expense:










Deposits

13,694



12,484



10,145



8,985



8,233


Borrowed funds

2,236



1,720



2,162



1,952



1,555


Total interest expense

15,930



14,204



12,307



10,937



9,788


Net interest income

90,936



92,603



87,982



86,831



85,817


   Provision for loan losses

3,302



4,667



6,467



3,792



6,982


Net interest income after provision for loan losses

87,634



87,936



81,515



83,039



78,835


Noninterest income:










Gain/(loss) on sale of investments



29



(6)



4




Gain on sale of loans

826










Service charges and fees

13,558



13,339



12,043



12,827



13,158


Trust and other financial services income

4,609



4,444



4,195



4,246



4,254


Insurance commission income

1,887



2,145



2,178



1,906



2,046


Gain/(loss) on real estate owned, net

(227)



91



(3)



(14)



(247)


Income from bank owned life insurance

1,095



1,197



1,005



1,038



1,460


Mortgage banking income

1,921



188



216



213



82


Other operating income

2,500



1,930



2,034



3,028



1,804


Total noninterest income

26,169



23,363



21,662



23,248



22,557


Noninterest expense:










Compensation and employee benefits

40,816



42,008



38,188



39,319



37,535


Premises and occupancy costs

7,061



7,387



7,218



6,567



6,821


Office operations

3,197



3,708



3,131



3,455



3,508


Collections expense

747



939



308



780



483


Processing expenses

11,122



10,634



10,434



10,160



9,620


Marketing expenses

1,373



2,729



1,886



2,331



1,949


Federal deposit insurance premiums

(702)



681



706



637



721


Professional services

3,032



3,198



2,524



3,134



2,368


Amortization of intangible assets

1,702



1,760



1,447



1,346



1,462


Real estate owned expense

119



128



159



187



205


Restructuring/acquisition expense

23



1,105



1,926



435



186


Other expenses

2,106



3,235



3,497



3,922



1,759


Total noninterest expense

70,596



77,512



71,424



72,273



66,617


Income before income taxes

43,207



33,787



31,753



34,014



34,775


Income tax expense

9,793



7,404



6,709



7,547



7,035


Net income

$

33,414



26,383



25,044



26,467



27,740












Basic earnings per share

$

0.32



0.25



0.24



0.26



0.27


Diluted earnings per share

$

0.31



0.25



0.24



0.26



0.27












Weighted average common shares outstanding - basic

105,517,707



105,233,635



103,101,789



102,479,086



102,334,954


Weighted average common shares outstanding - diluted

106,270,544



106,258,215



104,496,592



103,749,383



103,942,695












Annualized return on average equity

9.90

%


8.01

%


7.96

%


8.44

%


8.93

%

Annualized return on average assets

1.25

%


1.02

%


1.03

%


1.09

%


1.15

%

Annualized return on tangible common equity

13.46

%


10.97

%


10.74

%


11.29

%


12.07

%











Efficiency ratio *

58.81

%


64.37

%


62.07

%


64.04

%


59.95

%

Annualized noninterest expense to average assets *

2.59

%


2.88

%


2.79

%


2.91

%


2.70

%

*

Excludes restructuring/acquisition expenses and amortization of intangible assets (non-GAAP).

 

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)



Nine months ended September 30,


2019


2018

Interest income:




Loans receivable

$

296,943



264,059


Mortgage-backed securities

12,433



9,839


Taxable investment securities

2,718



2,140


Tax-free investment securities

643



908


FHLB dividends

794



301


Interest-earning deposits

431



766


Total interest income

313,962



278,013


Interest expense:




Deposits

36,323



22,000


Borrowed funds

6,118



4,203


Total interest expense

42,441



26,203


Net interest income

271,521



251,810


   Provision for loan losses

14,436



16,540


Net interest income after provision for loan losses

257,085



235,270


Noninterest income:




Gain on sale of investments

23



153


Gain on sale of loans

826




Service charges and fees

38,940



37,965


Trust and other financial services income

13,248



12,335


Insurance commission income

6,210



6,885


Loss on real estate owned, net

(139)



(617)


Income from bank owned life insurance

3,297



4,783


Mortgage banking income

2,325



383


Other operating income

6,464



6,567


Total noninterest income

71,194



68,454


Noninterest expense:




Compensation and employee benefits

121,012



113,076


Premises and occupancy costs

21,666



20,952


Office operations

10,036



10,684


Collections expense

1,994



1,429


Processing expenses

32,190



28,886


Marketing expenses

5,988



6,103


Federal deposit insurance premiums

685



2,109


Professional services

8,754



7,464


Amortization of intangible assets

4,909



4,502


Real estate owned expense

406



630


Restructuring/acquisition expense

3,054



579


Other expenses

8,838



7,411


Total noninterest expense

219,532



203,825


Income before income taxes

108,747



99,899


Income tax expense

23,906



20,875


Net income

$

84,841



79,024






Basic earnings per share

$

0.81



0.78


Diluted earnings per share

$

0.80



0.76






Weighted average common shares outstanding - basic

104,626,560



101,937,338


Weighted average common shares outstanding - diluted

105,681,615



103,504,069






Annualized return on average equity

8.65

%


8.67

%

Annualized return on average assets

1.10

%


1.11

%

Annualized return on tangible common equity

11.52

%


11.58

%





Efficiency ratio *

61.73

%


62.06

%

Annualized noninterest expense to average assets *

2.75

%


2.80

%

*

Excludes restructuring/acquisition expenses and amortization of intangible assets (non-GAAP).

 

 

Northwest Bancshares, Inc. and Subsidiaries

Asset quality (Unaudited)

(dollars in thousands)



September 30,

 2019


June 30,

 2019


March 31,

 2019


December 31,

 2018


September 30,

 2018

Nonaccrual loans current:










Residential mortgage loans

$

676



432



124



264



869


Home equity loans

607



475



643



437



496


Consumer loans

68



94



76



196



126


Commercial real estate loans

7,674



12,605



10,520



9,947



10,905


Commercial loans

3,777



5,666



4,277



4,736



1,972


Total nonaccrual loans current

$

12,802



19,272



15,640



15,580



14,368


Nonaccrual loans delinquent 30 days to 59 days:










Residential mortgage loans

$

40



13



824



1,358



15


Home equity loans

102



418



160



266



333


Consumer loans

246



172



154



294



182


Commercial real estate loans

925



469



2,642



219



3,124


Commercial loans

44



45



321



23



150


Total nonaccrual loans delinquent 30 days to 59 days

$

1,357



1,117



4,101



2,160



3,804


Nonaccrual loans delinquent 60 days to 89 days:










Residential mortgage loans

$

979



910



1,323



1,262



547


Home equity loans

436



717



954



376



418


Consumer loans

426



322



683



582



464


Commercial real estate loans

536



1,426



3,588



1,260



1,872


Commercial loans



780



397



332



352


Total nonaccrual loans delinquent 60 days to 89 days

$

2,377



4,155



6,945



3,812



3,653


Nonaccrual loans delinquent 90 days or more:










Residential mortgage loans

$

11,722



10,617



10,781



12,965



13,154


Home equity loans

5,966



5,591



5,542



5,996



5,838


Consumer finance loans

1



10





22



39


Consumer loans

3,399



2,892



3,215



3,228



3,535


Commercial real estate loans

22,292



21,123



24,528



25,509



27,122


Commercial loans

5,741



2,920



2,027



3,010



2,714


Total nonaccrual loans delinquent 90 days or more

$

49,121



43,153



46,093



50,730



52,402


Total nonaccrual loans

$

65,657



67,697



72,779



72,282



74,227


Total nonaccrual loans

$

65,657



67,697



72,779



72,282



74,227


Loans 90 days past maturity and still accruing

85



55



166



166



195


Nonperforming loans

65,742



67,752



72,945



72,448



74,422


Real estate owned, net

1,237



2,070



2,345



2,498



2,486


Nonperforming assets

$

66,979



69,822



75,290



74,946



76,908


Nonaccrual troubled debt restructuring *

$

9,138



13,375



14,951



15,306



9,777


Accruing troubled debt restructuring

21,162



17,894



17,861



18,302



19,370


Total troubled debt restructuring

$

30,300



31,269



32,812



33,608



29,147












Nonperforming loans to total loans

0.74

%


0.78

%


0.85

%


0.90

%


0.93

%

Nonperforming assets to total assets

0.63

%


0.66

%


0.73

%


0.78

%


0.80

%

Allowance for loan losses to total loans

0.60

%


0.61

%


0.65

%


0.69

%


0.70

%

Allowance for loan losses to nonperforming loans

80.40

%


78.38

%


76.39

%


76.21

%


75.21

%

*

Amounts included in nonperforming loans above.

 

 

 Northwest Bancshares, Inc. and Subsidiaries

Loans by credit quality indicators (Unaudited)

(dollars in thousands)


At September 30, 2019


Pass


Special

   mention *


Substandard

**


Doubtful


Loss


Loans

receivable

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

At September 30, 2018













Personal Banking:













Residential mortgage loans


$

2,835,806



11,028




2,846,834

Home equity loans


1,265,237



7,108




1,272,345

Consumer loans


771,555



4,494




776,049

Total Personal Banking


4,872,598



22,630




4,895,228

Commercial Banking:













Commercial real estate loans


2,283,152


53,529


181,385




2,518,066

Commercial loans


526,584


24,760


31,424




582,768

Total Commercial Banking


2,809,736


78,289


212,809




3,100,834

Total loans


$

7,682,334


78,289


235,439




7,996,062



*

Includes $8.7 million, $8.1 million, $3.4 million, $7.1 million, and $9.2 million of acquired loans at September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively.

**

Includes $46.6 million, $38.6 million, $37.8 million, $39.3 million, and $45.3 million of acquired loans at September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Loan delinquency (Unaudited)

(dollars in thousands)




September 30,
2019


*


June 30,

2019


*


March 31,

2019


*


December 31,
2018


*


September 30,
2018


*

(Number of loans and dollar amount of loans)































Loans delinquent 30 days to 59 days:































Residential mortgage loans


21


$

1,236


%


30


$

1,629


0.1

%


311


$

28,009


1.0

%


333


$

27,777


1.0

%


27


$

1,500


0.1

%

Home equity loans


149


4,774


0.4

%


148


4,573


0.3

%


195


7,626


0.6

%


233


8,649


0.7

%


184


5,673


0.4

%

Consumer finance loans


43


98


11.2

%


75


130


9.0

%


128


295


12.9

%


327


661


17.3

%


280


632


10.7

%

Consumer loans


821


7,499


0.7

%


781


7,500


0.7

%


777


7,228


0.8

%


1,073


9,447


1.1

%


984


8,408


1.1

%

Commercial real estate loans


27


5,308


0.2

%


31


2,418


0.1

%


48


28,965


1.0

%


37


5,503


0.2

%


36


5,386


0.2

%

Commercial loans


20


362


0.1

%


14


666


0.1

%


30


3,359


0.5

%


21


973


0.2

%


17


622


0.1

%

Total loans delinquent 30 days to 59 days


1,081


$

19,277


0.2

%


1,079


$

16,916


0.2

%


1,489


$

75,482


0.9

%


2,024


$

53,010


0.7

%


1,528


$

22,221


0.3

%
































Loans delinquent 60 days to 89 days:































Residential mortgage loans


95


$

5,320


0.2

%


78


$

6,264


0.2

%


29


$

2,602


0.1

%


71


$

6,425


0.2

%


61


$

4,704


0.2

%

Home equity loans


66


2,103


0.2

%


59


2,319


0.2

%


53


2,544


0.2

%


63


2,065


0.2

%


69


2,536


0.2

%

Consumer finance loans


21


43


4.9

%


25


44


3.0

%


28


47


2.1

%


86


172


4.5

%


112


234


4.0

%

Consumer loans


267


2,589


0.2

%


313


2,853


0.3

%


271


2,130


0.2

%


389


3,042


0.4

%


352


3,251


0.4

%

Commercial real estate loans


15


1,893


0.1

%


16


2,617


0.1

%


17


4,064


0.1

%


24


5,387


0.2

%


30


6,678


0.3

%

Commercial loans


10


589


0.1

%


16


1,725


0.2

%


7


738


0.1

%


8


560


0.1

%


21


1,104


0.2

%

Total loans delinquent 60 days to 89 days


474


$

12,537


0.1

%


507


$

15,822


0.2

%


405


$

12,125


0.2

%


641


$

17,651


0.2

%


645


$

18,507


0.2

%
































Loans delinquent 90 days or more: **































Residential mortgage loans


237


$

11,816


0.4

%


129


$

10,800


0.4

%


113


$

10,801


0.4

%


145


$

12,985


0.5

%


143


$

13,483


0.5

%

Home equity loans


157


5,966


0.4

%


136


5,591


0.4

%


155


5,542


0.4

%


161


6,037


0.5

%


150


5,838


0.5

%

Consumer finance loans


9


1


0.1

%


5


10


0.7

%




%


6


21


0.6

%


16


39


0.7

%

Consumer loans


389


3,400


0.3

%


705


2,898


0.3

%


764


3,221


0.3

%


432


3,233


0.4

%


766


3,541


0.5

%

Commercial real estate loans


118


22,292


0.8

%


118


21,123


0.7

%


125


24,589


0.9

%


128


25,587


1.0

%


126


27,228


1.1

%

Commercial loans


40


5,741


0.8

%


25


2,920


0.4

%


23


2,027


0.3

%


29


3,010


0.5

%


29


2,714


0.5

%

Total loans delinquent 90 days or more


950


$

49,216


0.6

%


1,118


$

43,342


0.5

%


1,180


$

46,180


0.6

%


901


$

50,873


0.6

%


1,230


$

52,843


0.7

%
































Total loans delinquent


2,505


$

81,030


0.9

%


2,704


$

76,080


0.9

%


3,074


$

133,787


1.6

%


3,566


$

121,534


1.5

%


3,403


$

93,571


1.2

%

*

Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.

**

Includes purchased credit impaired loans of $95,000, $190,000, $87,000, $145,000, and $440,000 at September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for loan losses (Unaudited)

(dollars in thousands)



Quarter ended


September 30,

2019


June 30,

2019


March 31,

2019


December 31,

 2018


September 30,

2018

Beginning balance

$

53,107



55,721



55,214



55,975



57,332


Provision

3,302



4,667



6,467



3,792



6,982


Charge-offs residential mortgage

(190)



(397)



(357)



(375)



(214)


Charge-offs home equity

(466)



(389)



(153)



(341)



(426)


Charge-offs consumer finance

(59)



(58)



(179)



(329)



(445)


Charge-offs consumer

(3,019)



(2,508)



(2,842)



(3,751)



(3,470)


Charge-offs commercial real estate

(389)



(4,367)



(604)



(1,538)



(4,859)


Charge-offs commercial

(1,151)



(1,087)



(3,270)



(824)



(985)


Recoveries

1,724



1,525



1,445



2,605



2,060


Ending balance

$

52,859



53,107



55,721



55,214



55,975


Net charge-offs to average loans, annualized

0.16

%


0.34

%


0.29

%


0.23

%


0.42

%

 


Nine months ended September 30,


2019


2018

Beginning balance

$

55,214



56,795


Provision

14,436



16,540


Charge-offs residential mortgage

(944)



(804)


Charge-offs home equity

(1,008)



(1,444)


Charge-offs consumer finance

(296)



(2,484)


Charge-offs consumer

(8,369)



(9,401)


Charge-offs commercial real estate

(5,360)



(5,849)


Charge-offs commercial

(5,508)



(2,501)


Recoveries

4,694



5,123


Ending balance

$

52,859



55,975


Net charge-offs to average loans, annualized

0.26

%


0.29

%

 


September 30, 2019


Originated loans


Acquired loans


Total loans


Balance


Reserve


Balance


Reserve


Balance


Reserve

Residential mortgage loans

$

2,808,957


2,507


87,176


92


2,896,133


2,599

Home equity loans

1,069,906


2,791


258,267


295


1,328,173


3,086

Consumer finance loans

872


140




872


140

Consumer loans

1,053,156


12,035


40,265


554


1,093,421


12,589

Personal Banking Loans

4,932,891


17,473


385,708


941


5,318,599


18,414

Commercial real estate loans

2,374,054


20,215


438,785


3,622


2,812,839


23,837

Commercial loans

661,287


9,729


59,292


879


720,579


10,608

Commercial Banking Loans

3,035,341


29,944


498,077


4,501


3,533,418


34,445

Total Loans

$

7,968,232


47,417


883,785


5,442


8,852,017


52,859

 

 

Northwest Bancshares, Inc. and Subsidiaries

Average balance sheet (Unaudited)

(dollars in thousands)


The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages.



Quarter ended


September 30, 2019


June 30, 2019


March 31, 2019


December 31, 2018


September 30, 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

$

2,894,716


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

%


$

2,804,027


28,974


4.13

%

Home equity loans

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

%


1,272,847


15,248


4.75

%

Consumer finance loans

1,128


55


19.50

%


1,826


87


19.06

%


2,999


139


18.54

%


4,751


220


18.52

%


7,176


343


19.12

%

Consumer loans

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

%


704,203


8,337


4.70

%

Commercial real estate loans

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

%


2,540,270


29,974


4.62

%

Commercial loans

710,847


9,949


5.48

%


670,613


7,966


4.70

%


615,090


8,967


5.83

%


590,195


8,666


5.75

%


598,842


8,203


5.36

%

Total loans receivable (a) (b) (d)

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

%


7,927,365


91,079


4.56

%

Mortgage-backed securities (c)

641,085


4,188


2.61

%


644,887


4,280


2.65

%


604,463


3,965


2.62

%


619,105


3,942


2.55

%


598,596


3,572


2.39

%

Investment securities (c) (d)

218,753


1,168


2.14

%


226,325


1,198


2.12

%


227,312


1,167


2.05

%


227,813


1,140


2.00

%


244,346


1,074


1.76

%

FHLB stock, at cost

16,302


307


7.47

%


16,117


316


7.86

%


16,098


171


4.31

%


14,372


151


4.17

%


9,819


119


4.81

%

Other interest-earning deposits

28,832


172


2.33

%


20,983


159


3.00

%


14,136


100


2.83

%


10,454


68


2.55

%


26,057


162


2.43

%

Total interest-earning assets

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

%


8,806,183


96,006


4.33

%

Noninterest earning assets (e)

916,781






910,225






868,843






743,262






746,077





Total assets

$

10,568,279






$

10,412,664






$

9,887,415






$

9,595,357






$

9,552,260





Liabilities and shareholders' equity:






























Interest-bearing liabilities:






























Savings deposits

$

1,658,670


788


0.19

%


$

1,696,715


777


0.18

%


$

1,650,947


758


0.19

%


$

1,637,400


758


0.18

%


$

1,672,990


785


0.19

%

Interest-bearing demand deposits

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

%


1,460,556


1,064


0.29

%

Money market deposit accounts

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

%


1,685,368


1,565


0.37

%

Time deposits

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

%


1,403,967


4,819


1.36

%

Borrowed funds (f)

243,960


1,002


1.63

%


147,119


413


1.13

%


257,550


1,006


1.58

%


216,975


782


1.43

%


129,523


239


0.73

%

Junior subordinated debentures

121,767


1,235


3.97

%


121,757


1,307


4.25

%


114,727


1,156


4.03

%


111,213


1,170


4.12

%


111,213


1,316


4.63

%

Total interest-bearing liabilities

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

%


6,463,617


9,788


0.60

%

Noninterest-bearing demand deposits (g)

1,915,392






1,888,697






1,785,158






1,750,253






1,724,427





Noninterest bearing liabilities

216,433






225,623






223,480






112,349






132,062





Total liabilities

9,228,940






9,092,282






8,611,130






8,350,793






8,320,106





Shareholders' equity

1,339,339






1,320,382






1,276,285






1,244,564






1,232,154





Total liabilities and shareholders' equity

$

10,568,279






$

10,412,664






$

9,887,415






$

9,595,357






$

9,552,260





Net interest income/Interest rate spread



91,332


3.52

%




93,005


3.71

%




88,351


3.77

%




87,188


3.73

%




86,218


3.73

%

Net interest-earning assets/Net interest margin

$

2,554,383




3.79

%


$

2,524,477




3.91

%


$

2,416,080




3.97

%


$

2,363,904




3.94

%


$

2,342,566




3.92

%

Ratio of interest-earning assets to interest-bearing liabilities

1.36






1.36X






1.37X






1.36X






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 0.63%, 0.58%, 0.51%, 0.45%, and 0.41%, respectively.

(h)

Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.59%, 4.71%, 4.72%, 4.60%, and 4.54%, respectively, Investment securities - 2.03%, 2.01%, 1.97%, 1.92%, and 1.67%, respectively, Interest-earning assets - 4.39%, 4.51%, 4.51%, 4.38%, and 4.31%, respectively. GAAP basis net interest rate spreads were 3.50%, 3.69%, 3.75%, 3.71%, and 3.71%, respectively, and GAAP basis net interest margins were 3.77%, 3.90%, 3.96%, 3.92%, and 3.90%, 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.



Nine months ended September 30,


2019


2018


Average

balance


Interest


Avg.

yield/

cost (h)


Average

balance


Interest


Avg.

yield/

cost (h)

Assets:












Interest-earning assets:












Residential mortgage loans

$

2,865,091


87,572


4.08

%


$

2,774,074


84,585


4.07

%

Home equity loans

1,300,537


48,868


5.02

%


1,284,114


45,617


4.75

%

Consumer finance loans

1,977


282


19.02

%


10,923


1,627


19.86

%

Consumer loans

947,326


32,562


4.60

%


666,055


23,788


4.78

%

Commercial real estate loans

2,720,435


99,930


4.84

%


2,510,206


86,188


4.53

%

Commercial loans

665,867


28,724


5.69

%


606,076


23,273


5.06

%

Loans receivable (a) (b) (d)

8,501,233


297,938


4.69

%


7,851,448


265,078


4.51

%

Mortgage-backed securities (c)

630,279


12,433


2.63

%


575,663


9,839


2.28

%

Investment securities (c) (d)

224,111


3,532


2.10

%


245,429


3,289


1.79

%

FHLB stock

14,840


794


7.15

%


8,999


301


4.47

%

Other interest-earning deposits

20,531


431


2.77

%


53,254


766


1.90

%

Total interest-earning assets

9,390,994


315,128


4.49

%


8,734,793


279,273


4.27

%

Noninterest earning assets (e)

898,459






753,403





Total assets

$

10,289,453






$

9,488,196





Liabilities and shareholders' equity:












Interest-bearing liabilities:












Savings deposits

$

1,668,806


2,323


0.19

%


$

1,680,892


2,307


0.18

%

Interest-bearing demand deposits

1,611,554


4,442


0.37

%


1,449,573


2,541


0.23

%

Money market deposit accounts

1,756,251


9,784


0.74

%


1,694,519


3,830


0.30

%

Time deposits

1,538,113


19,774


1.72

%


1,419,849


13,322


1.25

%

Borrowed funds (f)

216,160


2,421


1.50

%


122,376


412


0.45

%

Junior subordinated debentures

119,417


3,698


4.08

%


111,213


3,791


4.50

%

Total interest-bearing liabilities

6,910,301


42,442


0.82

%


6,478,422


26,203


0.54

%

Noninterest-bearing demand deposits (g)

1,847,344






1,669,423





Noninterest bearing liabilities

219,806






122,199





Total liabilities

8,977,451






8,270,044





Shareholders' equity

1,312,002






1,218,152





Total liabilities and shareholders' equity

$

10,289,453






$

9,488,196





Net interest income/Interest rate spread



272,686


3.67

%




253,070


3.73

%

Net interest-earning assets/Net interest margin

$

2,480,693




3.87

%


$

2,256,371




3.86

%

Ratio of interest-earning assets to interest-bearing liabilities

1.36X






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 0.37%, respectively.

(h) 

Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.67% and 4.50%, respectively, Investment securities - 2.00% and 1.66%, respectively, Interest-earning assets - 4.47% and 4.26%, respectively. GAAP basis net interest rate spreads were 3.65% and 3.71%, respectively, and GAAP basis net interest margins were 3.86% and 3.84%, respectively.

 

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SOURCE Northwest Bank