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COLUMBUS, Ohio, April 25, 2022 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2022 of $28.3 million, or $0.22 per diluted share. This represents a decrease of $12.0 million, or 29.7%, compared to the same quarter last year, when net income was $40.2 million, or $0.32 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended March 31, 2022 were 7.17% and 0.80% compared to 10.61% and 1.17% for the same quarter last year.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on May 16, 2022 to shareholders of record as of May 5, 2022. This is the 110th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of March 31, 2022, this represents an annualized dividend yield of approximately 5.9%.
Ronald J. Seiffert, Chairman, President and CEO, added, "During the quarter we successfully deployed a portion of our liquidity by purchasing two separate loan packages to augment our own loan production and to capitalize on higher market yields. These purchases included a $72 million small business equipment finance pool and a $138 million one- to four-family jumbo mortgage package. We are also very pleased to report a continued favorable trend in expense management over the past five quarters which will be further enhanced by the previously announced consolidation of another 20 branches in early April with expected annual expense savings of approximately $8.0 million. Asset quality metrics also continue to improve from March of last year with nonperforming and classified assets declining by $100.4 million and $147.9 million, respectively, and total delinquency and net charge-offs falling below pre-pandemic levels."
Mr. Seiffert continued "During the quarter our net interest income and net interest margin were once again impacted by the low interest rate environment and excess balance sheet liquidity, but we are encouraged by the recent increase in interest rates by the Federal Reserve with market expectations of more rate increases throughout the remainder of the year."
Net interest income decreased by $9.8 million, or 9.8%, to $90.6 million for the quarter ended March 31, 2022, from $100.5 million for the quarter ended March 31, 2021, due to a $14.1 million, or 13.8%, decrease in interest income on loans receivable. This decrease in interest income on loans was due to a decrease of $507.7 million, or 4.9%, in the average balance of loans in addition to a reduction in the yield on loans to 3.63% for the quarter ended March 31, 2022 from 4.01% for the quarter ended March 31, 2021. Also, contributing to the reduction in yield and interest income on loans, was PPP fee accretion of just $1.2 million during the current quarter compared to $4.8 million in the same quarter last year. Partially offsetting this decrease in interest income was a decrease in interest expense on deposits of $1.8 million, or 32.0%, primarily due to a decrease in our cost of our interest-bearing liabilities to 0.25% for the quarter ended March 31, 2022 from 0.33% for the quarter ended March 31, 2021 as a result of low market interest rates over the past year. Partially offsetting the decline in deposit interest rates was growth in the average balance of interest-bearing liabilities of $180.2 million, or 1.9%. The net effect of these changes, as well as the continued build of excess liquidity, caused the Company's net interest margin to decrease to 2.75% for the quarter ended March 31, 2022 from 3.18% for the same quarter last year.
The Company continued to experience improvement in asset quality as classified loans decreased by $147.9 million, or 31.6%, to $319.9 million, or 3.15% of total loans, at March 31, 2022 from $467.7 million, or 4.51% of total loans, at March 31, 2021. Total delinquent loans also decreased to $75.4 million, or just 0.74% of loans receivable, at March 31, 2022 from $122.8 million, or 1.18% of gross loans, at March 31, 2021. In addition, net charge-offs were just 0.06% during the current quarter compared to 0.19% during the same quarter last year. As a result of these improvements in asset quality, the Company once again recognized a negative provision for credit losses of $1.5 million for the quarter ended March 31, 2022 compared to a $5.6 million credit for the quarter ended March 31, 2021.
Noninterest income decreased by $6.2 million, or 19.4%, to $25.7 million for the quarter ended March 31, 2022, from $32.0 million for the quarter ended March 31, 2021. This decrease was primarily due to a decrease in mortgage banking income of $4.6 million, or 75.7%, to $1.5 million for the quarter ended March 31, 2022 from $6.0 million for the quarter ended March 31, 2021. This decrease reflects the impact of less favorable pricing in the secondary market. In addition, there was a decrease in insurance commission income of $2.5 million, or 100.0% from the quarter ended March 31, 2021 due to the sale of the insurance business during the second quarter of 2021.
Noninterest expense decreased by $4.2 million, or 4.9%, to $81.9 million for the quarter ended March 31, 2022 from $86.2 million for the quarter ended March 31, 2021. This decrease primarily resulted from a $2.0 million, or 43.8%, decrease in professional services to $2.6 million for the quarter ended March 31, 2022 from $4.6 million for the quarter ended March 31, 2021 due to the use of third-party experts to recruit talent and assist with our digital strategy rollout in the prior year. Also contributing to this favorable variance was a decrease of $1.0 million, or 11.5%, in premises and occupancy costs to $7.8 million for the quarter ended March 31, 2022 from $8.8 million for the quarter ended March 31, 2021 due primarily to the cost savings from the prior year's branch optimization initiative. Lastly, other expense decreased $1.0 million, or 29.8%, to $2.4 million for the quarter ended March 31, 2022 from $3.4 million for the quarter ended March 31, 2021 due to the increase in the discount rate used to calculate our pension liability and related pension expense. Partially offsetting these decreases was an increase in merger, asset disposition and restructuring expense of $1.4 million for the quarter ended March 31, 2022 due to the branch optimization initiative announced during the fourth quarter of 2021.
The provision for income taxes decreased by $4.0 million, or 34.4%, to $7.6 million for the quarter ended March 31, 2022 from $11.6 million for the quarter ended March 31, 2021 due primarily to a decrease in income before taxes in the current year.
Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank. Founded in 1896 and headquartered in Warren, Pennsylvania, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of March 31, 2022, 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.
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) | |||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||
Assets | |||||||||
Cash and cash equivalents | $ 1,161,006 | 1,279,259 | 979,290 | ||||||
Marketable securities available-for-sale (amortized cost of $1,542,170, $1,565,002 and $1,430,352, respectively) |
1,442,098 |
1,548,592 |
1,430,131 | ||||||
Marketable securities held-to-maturity (fair value of $677,376, $751,513 and $593,232, respectively) | 737,730 | 768,154 | 604,284 | ||||||
Total cash and cash equivalents and marketable securities | 3,340,834 | 3,596,005 | 3,013,705 | ||||||
Residential mortgage loans held-for-sale | 19,272 | 25,056 | 46,270 | ||||||
Residential mortgage loans | 3,102,617 | 2,969,564 | 2,925,408 | ||||||
Home equity loans | 1,286,520 | 1,319,931 | 1,407,524 | ||||||
Consumer loans | 1,895,981 | 1,838,748 | 1,554,355 | ||||||
Commercial real estate loans | 2,959,893 | 3,015,484 | 3,289,436 | ||||||
Commercial loans | 874,751 | 847,609 | 1,145,047 | ||||||
Total loans receivable | 10,139,034 | 10,016,392 | 10,368,040 | ||||||
Allowance for credit losses | (99,295) | (102,241) | (123,997) | ||||||
Loans receivable, net | 10,039,739 | 9,914,151 | 10,244,043 | ||||||
FHLB stock, at cost | 13,318 | 14,184 | 21,861 | ||||||
Accrued interest receivable | 26,268 | 25,599 | 28,732 | ||||||
Real estate owned, net | 929 | 873 | 1,738 | ||||||
Premises and equipment, net | 149,970 | 156,524 | 158,784 | ||||||
Bank-owned life insurance | 254,109 | 256,213 | 252,599 | ||||||
Goodwill | 380,997 | 380,997 | 382,356 | ||||||
Other intangible assets, net | 11,654 | 12,836 | 18,342 | ||||||
Other assets | 155,585 | 144,126 | 148,196 | ||||||
Total assets | $ 14,373,403 | 14,501,508 | 14,270,356 | ||||||
Liabilities and shareholders' equity | |||||||||
Liabilities | |||||||||
Noninterest-bearing demand deposits | $ 3,128,849 | 3,099,526 | 3,000,019 | ||||||
Interest-bearing demand deposits | 2,891,622 | 2,940,442 | 2,826,461 | ||||||
Money market deposit accounts | 2,680,613 | 2,629,882 | 2,521,881 | ||||||
Savings deposits | 2,367,438 | 2,303,760 | 2,229,214 | ||||||
Time deposits | 1,251,878 | 1,327,555 | 1,535,519 | ||||||
Total deposits | 12,320,400 | 12,301,165 | 12,113,094 | ||||||
Borrowed funds | 121,436 | 139,093 | 253,617 | ||||||
Subordinated debt | 123,670 | 123,575 | — | ||||||
Junior subordinated debentures | 129,119 | 129,054 | 128,859 | ||||||
Advances by borrowers for taxes and insurance | 44,022 | 44,582 | 44,024 | ||||||
Accrued interest payable | 563 | 1,804 | 659 | ||||||
Other liabilities | 110,681 | 178,664 | 189,109 | ||||||
Total liabilities | 12,849,891 | 12,917,937 | 12,729,362 | ||||||
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, 126,686,373, 126,612,183 and 127,222,648 shares issued and outstanding, respectively |
1,267 |
1,266 |
1,272 | ||||||
Additional paid-in capital | 1,012,308 | 1,010,405 | 1,018,822 | ||||||
Retained earnings | 612,481 | 609,529 | 571,612 | ||||||
Accumulated other comprehensive loss | (102,544) | (37,629) | (50,712) | ||||||
Total shareholders' equity | 1,523,512 | 1,583,571 | 1,540,994 | ||||||
Total liabilities and shareholders' equity | $ 14,373,403 | 14,501,508 | 14,270,356 | ||||||
Equity to assets | 10.60 % | 10.92 % | 10.80 % | ||||||
Tangible common equity to assets* | 8.09 % | 8.43 % | 8.22 % | ||||||
Book value per share | $ 12.03 | 12.51 | 12.11 | ||||||
Tangible book value per share* | $ 8.93 | 9.40 | 8.96 | ||||||
Closing market price per share | $ 13.51 | 14.16 | 14.45 | ||||||
Full time equivalent employees | 2,268 | 2,332 | 2,443 | ||||||
Number of banking offices | 170 | 170 | 170 | ||||||
* 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 | |||||||||
March 31,2022 | December 31,2021 | September 30,2021 | June 30,2021 | March 31,2021 | |||||
Interest income: | |||||||||
Loans receivable | $ 88,174 | 95,295 | 97,475 | 95,255 | 102,318 | ||||
Mortgage-backed securities | 6,360 | 5,743 | 5,840 | 5,680 | 4,200 | ||||
Taxable investment securities | 677 | 640 | 649 | 693 | 634 | ||||
Tax-free investment securities | 674 | 688 | 628 | 594 | 575 | ||||
FHLB stock dividends | 81 | 82 | 71 | 138 | 116 | ||||
Interest-earning deposits | 467 | 467 | 352 | 192 | 183 | ||||
Total interest income | 96,433 | 102,915 | 105,015 | 102,552 | 108,026 | ||||
Interest expense: | |||||||||
Deposits | 3,751 | 4,295 | 4,540 | 4,773 | 5,514 | ||||
Borrowed funds | 2,059 | 1,964 | 2,056 | 2,050 | 2,054 | ||||
Total interest expense | 5,810 | 6,259 | 6,596 | 6,823 | 7,568 | ||||
Net interest income | 90,623 | 96,656 | 98,419 | 95,729 | 100,458 | ||||
Provision for credit losses | (1,481) | (1,909) | (4,354) | — | (5,620) | ||||
Net interest income after provision for credit losses | 92,104 | 98,565 | 102,773 | 95,729 | 106,078 | ||||
Noninterest income: | |||||||||
Loss on sale of investments | (2) | (4) | (46) | (105) | (21) | ||||
Service charges and fees | 13,067 | 13,500 | 13,199 | 12,744 | 12,394 | ||||
Trust and other financial services income | 7,012 | 6,820 | 7,182 | 7,435 | 6,484 | ||||
Insurance commission income | — | — | 44 | 1,043 | 2,546 | ||||
Gain/(loss) on real estate owned, net | (29) | 71 | 247 | 166 | (42) | ||||
Income from bank-owned life insurance | 1,983 | 1,343 | 1,332 | 1,639 | 1,736 | ||||
Mortgage banking income | 1,465 | 2,120 | 3,941 | 3,811 | 6,020 | ||||
Gain on sale of insurance business | — | — | — | 25,327 | — | ||||
Other operating income | 2,244 | 3,192 | 3,287 | 2,648 | 2,836 | ||||
Total noninterest income | 25,740 | 27,042 | 29,186 | 54,708 | 31,953 | ||||
Noninterest expense: | |||||||||
Compensation and employee benefits | 46,917 | 48,691 | 49,063 | 48,894 | 47,239 | ||||
Premises and occupancy costs | 7,797 | 7,104 | 7,745 | 7,410 | 8,814 | ||||
Office operations | 3,383 | 3,144 | 4,143 | 3,317 | 3,165 | ||||
Collections expense | 520 | 602 | 411 | 303 | 616 | ||||
Processing expenses | 12,548 | 13,639 | 13,517 | 15,151 | 13,456 | ||||
Marketing expenses | 2,128 | 2,054 | 2,102 | 2,101 | 1,980 | ||||
Federal deposit insurance premiums | 1,129 | 1,131 | 1,184 | 1,353 | 1,307 | ||||
Professional services | 2,573 | 4,513 | 4,295 | 4,231 | 4,582 | ||||
Amortization of intangible assets | 1,183 | 1,205 | 1,321 | 1,433 | 1,594 | ||||
Real estate owned expense | 37 | 44 | 94 | 85 | 75 | ||||
Merger, asset disposition and restructuring expense | 1,374 | 2,812 | — | 632 | 9 | ||||
Other expenses | 2,355 | 1,346 | 2,227 | 1,422 | 3,354 | ||||
Total noninterest expense | 81,944 | 86,285 | 86,102 | 86,332 | 86,191 | ||||
Income before income taxes | 35,900 | 39,322 | 45,857 | 64,105 | 51,840 | ||||
Income tax expense | 7,613 | 9,266 | 10,794 | 15,138 | 11,603 | ||||
Net income | $ 28,287 | 30,056 | 35,063 | 48,967 | 40,237 | ||||
Basic earnings per share | $ 0.22 | 0.24 | 0.28 | 0.38 | 0.32 | ||||
Diluted earnings per share | $ 0.22 | 0.24 | 0.27 | 0.38 | 0.32 | ||||
Annualized return on average equity | 7.17 % | 7.65 % | 8.86 % | 12.58 % | 10.61 % | ||||
Annualized return on average assets | 0.80 % | 0.82 % | 0.97 % | 1.37 % | 1.17 % | ||||
Annualized return on tangible common equity * | 10.14 % | 10.02 % | 11.92 % | 16.66 % | 14.31 % | ||||
Efficiency ratio ** | 68.22 % | 66.51 % | 66.44 % | 67.35 % | 63.88 % | ||||
Annualized noninterest expense to average assets *** | 2.23 % | 2.25 % | 2.33 % | 2.35 % | 2.45 % | ||||
* 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) | |||||||||
March 31,2022 | December 31,2021 | September 30,2021 | June 30,2021 | March 31,2021 | |||||
Nonaccrual loans current: | |||||||||
Residential mortgage loans | $ 1,884 | 1,354 | 2,015 | 189 | 164 | ||||
Home equity loans | 1,376 | 1,212 | 1,267 | 170 | 268 | ||||
Consumer loans | 1,148 | 1,336 | 1,465 | 188 | 225 | ||||
Commercial real estate loans | 79,810 | 106,233 | 111,075 | 138,820 | 146,304 | ||||
Commercial loans | 6,060 | 6,098 | 17,021 | 17,545 | 6,361 | ||||
Total nonaccrual loans current | $ 90,278 | 116,233 | 132,843 | 156,912 | 153,322 | ||||
Nonaccrual loans delinquent 30 days to 59 days: | |||||||||
Residential mortgage loans | $ 760 | 244 | 99 | 68 | 1,261 | ||||
Home equity loans | 195 | 223 | 328 | 229 | 340 | ||||
Consumer loans | 190 | 241 | 152 | 230 | 254 | ||||
Commercial real estate loans | 333 | 239 | 205 | 1,589 | 965 | ||||
Commercial loans | 4 | 53 | 102 | 406 | 1,538 | ||||
Total nonaccrual loans delinquent 30 days to 59 days | $ 1,482 | 1,000 | 886 | 2,522 | 4,358 | ||||
Nonaccrual loans delinquent 60 days to 89 days: | |||||||||
Residential mortgage loans | $ 830 | 1,163 | 527 | 207 | 813 | ||||
Home equity loans | 371 | 61 | 142 | 310 | 417 | ||||
Consumer loans | 280 | 292 | 291 | 297 | 649 | ||||
Commercial real estate loans | — | 364 | 419 | 198 | 1,877 | ||||
Commercial loans | — | 218 | 170 | 21 | 7,919 | ||||
Total nonaccrual loans delinquent 60 days to 89 days | $ 1,481 | 2,098 | 1,549 | 1,033 | 11,675 | ||||
Nonaccrual loans delinquent 90 days or more: | |||||||||
Residential mortgage loans | $ 3,976 | 7,641 | 8,069 | 10,007 | 9,333 | ||||
Home equity loans | 2,968 | 4,262 | 4,745 | 6,256 | 7,044 | ||||
Consumer loans | 1,782 | 2,069 | 2,184 | 2,341 | 3,625 | ||||
Commercial real estate loans | 21,399 | 24,063 | 25,562 | 23,564 | 29,737 | ||||
Commercial loans | 795 | 1,105 | 1,104 | 4,126 | 4,860 | ||||
Total nonaccrual loans delinquent 90 days or more | $ 30,920 | 39,140 | 41,664 | 46,294 | 54,599 | ||||
Total nonaccrual loans | $ 124,161 | 158,471 | 176,942 | 206,761 | 223,954 | ||||
Total nonaccrual loans | $ 124,161 | 158,471 | 176,942 | 206,761 | 223,954 | ||||
Loans 90 days past due and still accruing | 420 | 331 | 386 | 302 | 197 | ||||
Nonperforming loans | 124,581 | 158,802 | 177,328 | 207,063 | 224,151 | ||||
Real estate owned, net | 929 | 873 | 809 | 1,353 | 1,738 | ||||
Nonperforming assets | $ 125,510 | 159,675 | 178,137 | 208,416 | 225,889 | ||||
Nonaccrual troubled debt restructuring * | $ 16,015 | 17,216 | 12,858 | 8,951 | 7,390 | ||||
Accruing troubled debt restructuring | 12,686 | 13,072 | 13,664 | 18,480 | 20,120 | ||||
Total troubled debt restructuring | $ 28,701 | 30,288 | 26,522 | 27,431 | 27,510 | ||||
Nonperforming loans to total loans | 1.23 % | 1.59 % | 1.74 % | 2.01 % | 2.16 % | ||||
Nonperforming assets to total assets | 0.87 % | 1.10 % | 1.24 % | 1.46 % | 1.58 % | ||||
Allowance for credit losses to total loans | 0.98 % | 1.02 % | 1.08 % | 1.14 % | 1.20 % | ||||
Allowance for total loans excluding PPP loan balances | 0.98 % | 1.03 % | 1.09 % | 1.17 % | 1.24 % | ||||
Allowance for credit losses to nonperforming loans | 79.70 % | 64.38 % | 61.90 % | 56.66 % | 55.32 % | ||||
* Amounts included in nonperforming loans above. |
Northwest Bancshares, Inc. and SubsidiariesLoans by Credit Quality Indicators (Unaudited)(dollars in thousands) | ||||||||||||
At March 31, 2022 | Pass | Special mention * | Substandard ** | Doubtful | Loss | Loans receivable | ||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 3,108,366 | — | 13,523 | — | — | 3,121,889 | ||||||
Home equity loans | 1,280,342 | — | 6,178 | — | — | 1,286,520 | ||||||
Consumer loans | 1,892,162 | — | 3,819 | — | — | 1,895,981 | ||||||
Total Personal Banking | 6,280,870 | — | 23,520 | — | — | 6,304,390 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,633,808 | 62,091 | 263,994 | — | — | 2,959,893 | ||||||
Commercial loans | 839,125 | 3,277 | 32,349 | — | — | 874,751 | ||||||
Total Commercial Banking | 3,472,933 | 65,368 | 296,343 | — | — | 3,834,644 | ||||||
Total loans | $ 9,753,803 | 65,368 | 319,863 | — | — | 10,139,034 | ||||||
At December 31, 2021 | ||||||||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 2,978,080 | — | 16,540 | — | — | 2,994,620 | ||||||
Home equity loans | 1,312,820 | — | 7,111 | — | — | 1,319,931 | ||||||
Consumer loans | 1,834,478 | — | 4,270 | — | — | 1,838,748 | ||||||
Total Personal Banking | 6,125,378 | — | 27,921 | — | — | 6,153,299 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,639,676 | 74,123 | 301,685 | — | — | 3,015,484 | ||||||
Commercial loans | 808,323 | 5,730 | 33,556 | — | — | 847,609 | ||||||
Total Commercial Banking | 3,447,999 | 79,853 | 335,241 | — | — | 3,863,093 | ||||||
Total loans | $ 9,573,377 | 79,853 | 363,162 | — | — | 10,016,392 | ||||||
At September 30, 2021 | ||||||||||||
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 | ||||||
* | Includes $4.4 million, $14.9 million, $16.7 million, $16.7 million, and $26.4 million of acquired loans at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively. |
** | Includes $71.9 million, $81.5 million, $110.4 million, $122.5 million, and $143.2 million of acquired loans at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively. |
Northwest Bancshares, Inc. and SubsidiariesLoan Delinquency (Unaudited)(dollars in thousands) | |||||||||||||||||||||||||||||
March 31,2022 | * | December 31,2021 | * | September 30,2021 | * | June 30,2021 | * | March 31,2021 | * | ||||||||||||||||||||
(Number of loans and dollar amount of loans) | |||||||||||||||||||||||||||||
Loans delinquent 30 days to 59 days: | |||||||||||||||||||||||||||||
Residential mortgage loans | 281 | $ 24,057 | 0.8 % | 277 | $ 20,567 | 0.7 % | 17 | $ 765 | — % | 13 | $ 606 | — % | 248 | $ 22,236 | 0.7 % | ||||||||||||||
Home equity loans | 105 | 3,867 | 0.3 % | 112 | 3,153 | 0.2 % | 101 | 3,351 | 0.2 % | 91 | 3,677 | 0.3 % | 84 | 3,334 | 0.2 % | ||||||||||||||
Consumer loans | 523 | 6,043 | 0.3 % | 589 | 6,536 | 0.4 % | 576 | 6,146 | 0.3 % | 532 | 5,571 | 0.3 % | 535 | 5,732 | 0.4 % | ||||||||||||||
Commercial real estate loans | 25 | 3,643 | 0.1 % | 17 | 17,065 | 0.6 % | 19 | 2,004 | 0.1 % | 13 | 2,857 | 0.1 % | 33 | 12,240 | 0.4 % | ||||||||||||||
Commercial loans | 16 | 1,268 | 0.1 % | 12 | 193 | — % | 10 | 692 | 0.1 % | 15 | 686 | 0.1 % | 16 | 3,032 | 0.3 % | ||||||||||||||
Total loans delinquent 30 days to 59 days | 950 | $ 38,878 | 0.4 % | 1,007 | $ 47,514 | 0.5 % | 723 | $ 12,958 | 0.1 % | 664 | $ 13,397 | 0.1 % | 916 | $ 46,574 | 0.4 % | ||||||||||||||
Loans delinquent 60 days to 89 days: | |||||||||||||||||||||||||||||
Residential mortgage loans | 24 | $ 1,950 | 0.1 % | 59 | $ 5,433 | 0.2 % | 55 | $ 4,907 | 0.2 % | 58 | $ 4,051 | 0.1 % | 26 | $ 2,062 | 0.1 % | ||||||||||||||
Home equity loans | 28 | 1,138 | 0.1 % | 30 | 949 | 0.1 % | 29 | 1,024 | 0.1 % | 36 | 1,502 | 0.1 % | 31 | 953 | 0.1 % | ||||||||||||||
Consumer loans | 159 | 1,839 | 0.1 % | 195 | 2,006 | 0.1 % | 180 | 1,757 | 0.1 % | 181 | 1,988 | 0.1 % | 169 | 1,868 | 0.1 % | ||||||||||||||
Commercial real estate loans | 1 | 112 | — % | 5 | 769 | — % | 8 | 1,170 | — % | 9 | 1,335 | — % | 14 | 7,609 | 0.2 % | ||||||||||||||
Commercial loans | 3 | 103 | — % | 10 | 727 | 0.1 % | 2 | 170 | — % | 2 | 27 | — % | 12 | 8,979 | 0.8 % | ||||||||||||||
Total loans delinquent 60 days to 89 days | 215 | $ 5,142 | 0.1 % | 299 | $ 9,884 | 0.1 % | 274 | $ 9,028 | 0.1 % | 286 | $ 8,903 | 0.1 % | 252 | $ 21,471 | 0.2 % | ||||||||||||||
Loans delinquent 90 days or more: ** | |||||||||||||||||||||||||||||
Residential mortgage loans | 47 | $ 3,976 | 0.1 % | 87 | $ 7,641 | 0.3 % | 95 | $ 8,069 | 0.3 % | 115 | $ 10,007 | 0.3 % | 121 | $ 9,333 | 0.3 % | ||||||||||||||
Home equity loans | 91 | 2,968 | 0.2 % | 105 | 4,262 | 0.3 % | 119 | 4,745 | 0.4 % | 146 | 6,256 | 0.5 % | 176 | 7,044 | 0.5 % | ||||||||||||||
Consumer loans | 287 | 2,202 | 0.1 % | 296 | 2,400 | 0.1 % | 308 | 2,568 | 0.1 % | 356 | 2,643 | 0.2 % | 454 | 3,822 | 0.2 % | ||||||||||||||
Commercial real estate loans | 41 | 21,399 | 0.7 % | 52 | 24,063 | 0.8 % | 59 | 25,562 | 0.8 % | 83 | 23,564 | 0.7 % | 113 | 29,737 | 0.9 % | ||||||||||||||
Commercial loans | 10 | 795 | 0.1 % | 8 | 1,105 | 0.1 % | 10 | 1,104 | 0.1 % | 18 | 4,126 | 0.4 % | 31 | 4,860 | 0.4 % | ||||||||||||||
Total loans delinquent 90 days or more | 476 | $ 31,340 | 0.3 % | 548 | $ 39,471 | 0.4 % | 591 | $ 42,048 | 0.4 % | 718 | $ 46,596 | 0.5 % | 895 | $ 54,796 | 0.5 % | ||||||||||||||
Total loans delinquent | 1,641 | $ 75,360 | 0.7 % | 1,854 | $ 96,869 | 1.0 % | 1,588 | $ 64,034 | 0.6 % | 1,668 | $ 68,896 | 0.7 % | 2,063 | $ 122,841 | 1.2 % | ||||||||||||||
* | Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding. |
** | Includes purchased credit deteriorated loans of $7.1 million, $7.3 million, $8.4 million, $10.3 million, and $12.7 million at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively. |
Northwest Bancshares, Inc. and SubsidiariesAllowance for Credit Losses (Unaudited)(dollars in thousands) | |||||||||
Quarter ended | |||||||||
March 31,2022 | December 31,2021 | September 30,2021 | June 30,2021 | March 31,2021 | |||||
Beginning balance | $ 102,241 | 109,767 | 117,330 | 123,997 | 134,427 | ||||
Provision | (1,481) | (1,909) | (4,354) | — | (5,620) | ||||
Charge-offs residential mortgage | (1,183) | (784) | (1,263) | (770) | (855) | ||||
Charge-offs home equity | (447) | (1,299) | (1,474) | (379) | (228) | ||||
Charge-offs consumer | (1,723) | (2,897) | (2,148) | (2,401) | (2,603) | ||||
Charge-offs commercial real estate | (1,024) | (2,652) | (1,581) | (3,964) | (4,626) | ||||
Charge-offs commercial | (681) | (2,586) | (412) | (1,161) | (54) | ||||
Recoveries | 3,593 | 4,601 | 3,669 | 2,008 | 3,556 | ||||
Ending balance | $ 99,295 | 102,241 | 109,767 | 117,330 | 123,997 | ||||
Net charge-offs to average loans, annualized | 0.06 % | 0.22 % | 0.12 % | 0.26 % | 0.19 % | ||||
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 | |||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | |||||||||||||||||||||||||
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 | $ 2,980,788 | 25,542 | 3.43 % | $ 2,977,942 | 25,269 | 3.39 % | $ 2,959,794 | 25,398 | 3.43 % | $ 2,935,034 | 25,609 | 3.49 % | $ 3,007,439 | 26,366 | 3.51 % | ||||||||||||||
Home equity loans | 1,293,986 | 11,472 | 3.60 % | 1,328,553 | 11,750 | 3.51 % | 1,356,131 | 11,993 | 3.51 % | 1,380,794 | 12,232 | 3.55 % | 1,432,009 | 12,815 | 3.63 % | ||||||||||||||
Consumer loans | 1,799,037 | 14,907 | 3.36 % | 1,756,620 | 15,514 | 3.50 % | 1,728,563 | 16,220 | 3.72 % | 1,589,739 | 14,555 | 3.67 % | 1,463,284 | 14,566 | 4.04 % | ||||||||||||||
Commercial real estate loans | 3,000,204 | 29,757 | 3.97 % | 3,113,924 | 34,062 | 4.28 % | 3,205,839 | 35,305 | 4.31 % | 3,257,810 | 33,349 | 4.05 % | 3,313,892 | 38,471 | 4.64 % | ||||||||||||||
Commercial loans | 824,770 | 6,897 | 3.34 % | 855,998 | 9,154 | 4.18 % | 975,603 | 9,096 | 3.65 % | 1,133,969 | 9,978 | 3.48 % | 1,189,812 | 10,566 | 3.55 % | ||||||||||||||
Total loans receivable (a) (b) (d) | 9,898,785 | 88,575 | 3.63 % | 10,033,037 | 95,749 | 3.79 % | 10,225,930 | 98,012 | 3.80 % | 10,297,346 | 95,723 | 3.73 % | 10,406,436 | 102,784 | 4.01 % | ||||||||||||||
Mortgage-backed securities (c) | 1,945,173 | 6,360 | 1.31 % | 1,894,683 | 5,743 | 1.21 % | 1,832,876 | 5,840 | 1.27 % | 1,756,227 | 5,680 | 1.29 % | 1,324,558 | 4,200 | 1.27 % | ||||||||||||||
Investment securities (c) (d) | 373,694 | 1,540 | 1.65 % | 358,558 | 1,535 | 1.71 % | 348,619 | 1,466 | 1.68 % | 364,414 | 1,466 | 1.61 % | 331,358 | 1,381 | 1.67 % | ||||||||||||||
FHLB stock, at cost | 13,870 | 81 | 2.38 % | 14,459 | 82 | 2.25 % | 21,607 | 71 | 1.31 % | 23,107 | 138 | 2.40 % | 21,811 | 116 | 2.17 % | ||||||||||||||
Other interest-earning deposits | 1,218,960 | 467 | 0.15 % | 1,168,449 | 467 | 0.16 % | 905,130 | 352 | 0.15 % | 810,741 | 192 | 0.09 % | 801,119 | 183 | 0.09 % | ||||||||||||||
Total interest-earning assets | 13,450,482 | 97,023 | 2.93 % | 13,469,186 | 103,576 | 3.05 % | 13,334,162 | 105,741 | 3.15 % | 13,251,835 | 103,199 | 3.12 % | 12,885,282 | 108,664 | 3.42 % | ||||||||||||||
Noninterest-earning assets (e) | 973,092 | 1,004,905 | 1,074,122 | 1,104,924 | 1,102,477 | ||||||||||||||||||||||||
Total assets | $ 14,423,574 | $ 14,474,091 | $ 14,408,284 | $ 14,356,759 | $ 13,987,759 | ||||||||||||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||
Savings deposits | $ 2,334,494 | 592 | 0.10 % | $ 2,282,606 | 622 | 0.11 % | $ 2,271,365 | 603 | 0.11 % | $ 2,255,578 | 590 | 0.10 % | $ 2,118,030 | 625 | 0.12 % | ||||||||||||||
Interest-bearing demand deposits | 2,875,430 | 321 | 0.05 % | 2,933,466 | 411 | 0.06 % | 2,890,905 | 414 | 0.06 % | 2,840,949 | 407 | 0.06 % | 2,783,429 | 429 | 0.06 % | ||||||||||||||
Money market deposit accounts | 2,668,105 | 653 | 0.10 % | 2,618,177 | 656 | 0.10 % | 2,565,159 | 637 | 0.10 % | 2,537,629 | 621 | 0.10 % | 2,497,495 | 657 | 0.11 % | ||||||||||||||
Time deposits | 1,292,608 | 2,185 | 0.69 % | 1,356,513 | 2,606 | 0.76 % | 1,423,041 | 2,886 | 0.80 % | 1,493,947 | 3,155 | 0.85 % | 1,583,525 | 3,803 | 0.97 % | ||||||||||||||
Borrowed funds (f) | 135,289 | 158 | 0.47 % | 135,038 | 159 | 0.47 % | 131,199 | 154 | 0.47 % | 131,240 | 150 | 0.46 % | 143,806 | 154 | 0.43 % | ||||||||||||||
Subordinated debt (g) | 123,608 | 1,250 | 4.05 % | 123,514 | 1,180 | 3.82 % | 123,513 | 1,277 | 4.10 % | 123,443 | 1,264 | 4.11 % | 123,357 | 1,258 | 4.14 % | ||||||||||||||
Junior subordinated debentures | 129,077 | 651 | 2.02 % | 129,012 | 625 | 1.89 % | 128,946 | 625 | 1.90 % | 128,882 | 636 | 1.95 % | 128,817 | 642 | 1.99 % | ||||||||||||||
Total interest-bearing liabilities | 9,558,611 | 5,810 | 0.25 % | 9,578,326 | 6,259 | 0.26 % | 9,534,128 | 6,596 | 0.27 % | 9,511,668 | 6,823 | 0.29 % | 9,378,459 | 7,568 | 0.33 % | ||||||||||||||
Noninterest-bearing demand deposits (h) | 3,060,698 | 3,093,518 | 3,058,819 | 3,036,202 | 2,805,206 | ||||||||||||||||||||||||
Noninterest-bearing liabilities | 203,537 | 242,620 | 244,402 | 247,930 | 265,667 | ||||||||||||||||||||||||
Total liabilities | 12,822,846 | 12,914,464 | 12,837,349 | 12,795,800 | 12,449,332 | ||||||||||||||||||||||||
Shareholders' equity | 1,600,728 | 1,559,627 | 1,570,935 | 1,560,959 | 1,538,427 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ 14,423,574 | $ 14,474,091 | $ 14,408,284 | $ 14,356,759 | $ 13,987,759 | ||||||||||||||||||||||||
Net interest income/Interest rate spread | 91,213 | 2.68 % | 97,317 | 2.79 % | 99,145 | 2.87 % | 96,376 | 2.84 % | 101,096 | 3.09 % | |||||||||||||||||||
Net interest-earning assets/Net interest margin | $ 3,891,871 | 2.75 % | $ 3,890,860 | 2.89 % | $ 3,800,034 | 2.97 % | $ 3,740,167 | 2.91 % | $ 3,506,823 | 3.18 % | |||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.41X | 1.41X | 1.40X | 1.39X | 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 0.12%, 0.14%, 0.15%, 0.16%, and 0.19%, respectively. |
(i) | Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans — 3.61%, 3.77%, 3.79%, 3.71%, and 3.99%, respectively, Investment securities — 1.45%, 1.48%, 1.47%, 1.41%, and 1.46%, respectively, Interest-earning assets — 2.91%, 3.03%, 3.13%, 3.10%, and 3.40%, respectively. GAAP basis net interest rate spreads were 2.66%, 2.77%, 2.86%, 2.82%, and 3.07%, respectively, and GAAP basis net interest margins were 2.73%, 2.87%, 2.95%, 2.89%, and 3.16%, respectively. |
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SOURCE Northwest Bancshares, Inc.
