COLUMBUS, Ohio, Jan. 23, 2023 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2022 of $34.6 million, or $0.27 per diluted share. This represents an increase of $4.6 million, or 15.3%, compared to the same quarter last year, when net income was $30.1 million, or $0.24 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended December 31, 2022 were 9.38% and 0.98% compared to 7.65% and 0.82% for the quarter ended December 31, 2021.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on February 14, 2023 to shareholders of record as of February 2, 2023. This is the 113th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of December 31, 2022, this represents an annualized dividend yield of approximately 5.7%.
Louis J. Torchio, President and CEO, added, "We were very pleased with our organic loan growth this quarter of $178.9 million, or 1.7%, spread across all loan categories. In addition, our net interest margin expanded by 15 basis points to 3.57%, and asset quality metrics remain solid. We have also taken additional measures to reduce expenses and improve our efficiency. We recently announced the further optimization of eight offices within our branch network to be completed in April 2023. In-branch activity continues to slow as customers prefer to transact through online and mobile channels. In addition, we have re-aligned our workforce to correspond with our strategic direction as a commercial bank, further streamlining our operations. These efforts generated $4.2 million of severance and restructuring costs in the fourth quarter with an additional $3.2 million expected to be recognized in the first quarter of 2023."
Mr. Torchio continued, "These necessary measures will reduce our overall workforce by approximately 12% and generate approximately $16.0 million in annual operating expense savings beginning in the second quarter of 2023. These operating expense savings are expected to be reinvested in the Company's strategic initiatives during 2023, focused on shifting our balance sheet mix and continuing our journey as a full-service commercial bank. This shift includes further buildout of our core middle market C&I strategy throughout our footprint with full relationship banking, including enhanced treasury management services. In addition, we will further scale small business lending with particular focus on Small Business Administration (SBA) financing and secondary market sales, as well as the recent addition of our new equipment finance team with specialty finance expertise throughout the east coast"
Net interest income increased by $20.4 million, or 21.1%, to $117.0 million for the quarter ended December 31, 2022, from $96.7 million for the quarter ended December 31, 2021. This increase in net interest income is due to both the increase in market interest rates and the change in our interest-earning asset mix. Cash in interest-earning deposits was redeployed into higher yielding loans and investments, which, along with higher market interest rates, caused the yield on interest-earning assets to increase to 3.89% for the quarter ended December 31, 2022 from 3.05% for the quarter ended December 31, 2021. This increase in yield was partially offset by an increase in the cost of interest-bearing liabilities, which increased to 0.46% for the quarter ended December 31, 2022 from 0.26% for the quarter ended December 31, 2021. The net effect of the changes in interest rates and average balances was an increase in the Company's net interest margin to 3.57% for the quarter ended December 31, 2022, from 2.89% for the same quarter last year.
The provision for credit losses increased by $10.9 million, reflecting an expense of $9.0 million for the current quarter ended December 31, 2022 compared to a provision credit of $1.9 million for the quarter ended December 31, 2021. This increase was primarily due to growth within our loan portfolio during the current year in conjunction with forecasted economic deterioration reflected in our allowance for credit loss models, including a reduction in home and used vehicle values. The Company continued to experience improvement in asset quality as classified loans decreased by $126.9 million, or 34.9%, to $236.2 million, or 2.2% of total loans, at December 31, 2022, from $363.2 million, or 3.6% of total loans, at December 31, 2021. Total delinquent loans also decreased to $85.9 million, or 0.8% of loans receivable, at December 31, 2022 from $96.9 million, or 1.0% of loans receivable, at December 31, 2021. In addition, the Company experienced net charge-offs during the current quarter of $806,000, or 0.03% on an annualized basis, compared to net charge-offs of $5.6 million, or 0.22% on an annualized basis, during the same quarter last year, for an overall net improvement of $4.8 million.
Noninterest income increased by $816,000, or 3.0%, to $27.9 million for the quarter ended December 31, 2022, from $27.0 million for the quarter ended December 31, 2021. This increase was primarily due to an increase in our other operating income of $1.7 million, or 53.5%, to $4.9 million for the quarter ended December 31, 2022 from $3.2 million for the quarter ended December 31, 2021. This increase was primarily the result of gains from the sale of branch buildings associated with the previously announced branch consolidations and improvements in other fee income. Partially offsetting this increase was a decline in mortgage banking income of $1.6 million, or 77.5%, to $477,000 for the quarter ended December 31, 2022 from $2.1 million for the quarter ended December 31, 2021. This decrease reflects the impact of less favorable pricing in the secondary market, due primarily to the volatile interest rate environment, as well as a decrease in mortgage volumes primarily due to higher market interest rates.
Noninterest expense increased by $4.4 million, or 5.1%, to $90.7 million for the quarter ended December 31, 2022 from $86.3 million for the quarter ended December 31, 2021. This increase was primarily due to an increase in other expenses of $2.8 million, or 210.5%, and an increase in merger, asset disposition and restructuring expenses of $1.4 million, or 50.9%. The increase in other expense was primarily due to an increase in our unfunded loan loss reserve associated with the origination of loans with current off-balance sheet exposure. The increase in merger, asset disposition and restructuring expense was a result of severance and fixed asset charges related to the branch optimization and personnel reduction, as previously noted.
The provision for income taxes increased by $1.3 million, or 14.1%, to $10.6 million for the quarter ended December 31, 2022 from $9.3 million for the quarter ended December 31, 2021 due primarily to an increase in income before taxes in the current quarter.
Net income for the year ended December 31, 2022 was $133.7 million, or $1.05 per diluted share. This represents a decrease of $20.7 million, or 13.4%, compared to the year ended December 31, 2021, when net income was $154.3 million, or $1.21 per diluted share. The annualized returns on average shareholders' equity and average assets for the year ended December 31, 2022 were 8.80% and 0.94% compared to 9.91% and 1.08% for the prior year. This decrease in net income was the result of an increase in provision for credit losses of $29.7 million, primarily as a result of the provision credit in 2021 related to the release of reserves built-up during COVID-19. In addition, noninterest income decreased by $32.0 million, or 22.4%, largely due to the $25.3 million gain recognized on the sale of the insurance business in the second quarter of 2021. Also contributing to the decline in noninterest income was an $11.0 million reduction in mortgage banking income due to the volatile interest rate environment causing unfavorable pricing in the secondary market and a slowdown in mortgage loan activity in general. Partially offsetting these unfavorable variances was an increase in net interest income by $29.4 million, or 7.5%, to $420.7 million for the year ended December 31, 2022 from $391.3 million for the year ended December 31, 2021. This increase in net interest income was due primarily to an increase in the yield on interest-earning assets to 3.41% for the year ended December 31, 2022 from 3.18% for the year ended December 31, 2021, as well as an increase in the average balance of interest earning assets by $17.6 million. Lastly, noninterest expense decreased by $4.9 million, or 1.4%, to $340.0 million for the year ended December 31, 2022 from $344.9 million for the year ended December 31, 2021 despite an increase in merger, asset disposition and restructuring expense of $2.2 million, or 62.7%, related to the branch and personnel optimization expense and an increase in other expenses of $7.3 million related primarily to the buildup of credit loss reserves for unfunded loans with off balance sheet exposure.
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 treasury management solutions and wealth management services. As of December 31, 2022, Northwest operated 142 full-service community banking offices and eight free standing drive-through facilities in Pennsylvania, New York, Ohio and Indiana. The common stock of Northwest Bancshares, Inc. is listed on the NASDAQ Global Select Market ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.
Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including inflation and an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; (7) increased risk associated with commercial real-estate and business loans; 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 Subsidiaries
|
|
Consolidated Statements of Financial Condition (Unaudited)
|
|
(dollars in thousands, except per share amounts)
|
|
|
December 31,
2022
|
|
September 30,
2022
|
|
December 31,
2021
|
|
Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
$ 139,365
|
|
118,549
|
|
1,279,259
|
|
Marketable securities available-for-sale (amortized cost of $1,431,728, $1,466,883 and $1,565,002, respectively)
|
1,218,108
|
|
1,251,791
|
|
1,548,592
|
|
Marketable securities held-to-maturity (fair value of $751,384, $771,238 and $751,513, respectively)
|
881,249
|
|
899,411
|
|
768,154
|
|
Total cash and cash equivalents and marketable securities
|
2,238,722
|
|
2,269,751
|
|
3,596,005
|
|
Residential mortgage loans held-for-sale
|
9,913
|
|
15,834
|
|
25,056
|
|
Residential mortgage loans
|
3,488,686
|
|
3,386,064
|
|
2,969,564
|
|
Home equity loans
|
1,297,674
|
|
1,284,989
|
|
1,319,931
|
|
Consumer loans
|
2,168,655
|
|
2,116,238
|
|
1,838,748
|
|
Commercial real estate loans
|
2,823,555
|
|
2,812,830
|
|
3,015,484
|
|
Commercial loans
|
1,131,969
|
|
1,125,570
|
|
847,609
|
|
Total loans receivable
|
10,920,452
|
|
10,741,525
|
|
10,016,392
|
|
Allowance for credit losses
|
(118,036)
|
|
(109,819)
|
|
(102,241)
|
|
Loans receivable, net
|
10,802,416
|
|
10,631,706
|
|
9,914,151
|
|
FHLB stock, at cost
|
40,143
|
|
19,281
|
|
14,184
|
|
Accrued interest receivable
|
35,528
|
|
29,536
|
|
25,599
|
|
Real estate owned, net
|
413
|
|
450
|
|
873
|
|
Premises and equipment, net
|
145,909
|
|
146,173
|
|
156,524
|
|
Bank-owned life insurance
|
255,062
|
|
255,015
|
|
256,213
|
|
Goodwill
|
380,997
|
|
380,997
|
|
380,997
|
|
Other intangible assets, net
|
8,560
|
|
9,491
|
|
12,836
|
|
Other assets
|
205,574
|
|
210,744
|
|
144,126
|
|
Total assets
|
$ 14,113,324
|
|
13,953,144
|
|
14,501,508
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
$ 2,993,243
|
|
3,094,120
|
|
3,099,526
|
|
Interest-bearing demand deposits
|
2,686,431
|
|
2,812,730
|
|
2,940,442
|
|
Money market deposit accounts
|
2,457,569
|
|
2,577,013
|
|
2,629,882
|
|
Savings deposits
|
2,275,020
|
|
2,327,419
|
|
2,303,760
|
|
Time deposits
|
1,052,285
|
|
1,067,110
|
|
1,327,555
|
|
Total deposits
|
11,464,548
|
|
11,878,392
|
|
12,301,165
|
|
|
|
|
|
|
|
Borrowed funds
|
681,166
|
|
150,036
|
|
139,093
|
|
Subordinated debt
|
113,840
|
|
113,753
|
|
123,575
|
|
Junior subordinated debentures
|
129,314
|
|
129,249
|
|
129,054
|
|
Advances by borrowers for taxes and insurance
|
47,613
|
|
29,647
|
|
44,582
|
|
Accrued interest payable
|
3,231
|
|
831
|
|
1,804
|
|
Other liabilities
|
182,126
|
|
191,450
|
|
178,664
|
|
Total liabilities
|
12,621,838
|
|
12,493,358
|
|
12,917,937
|
|
Shareholders' equity
|
|
|
|
|
|
|
Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares issued
|
—
|
|
—
|
|
—
|
|
Common stock, $0.01 par value: 500,000,000 shares authorized, 127,028,848, 126,921,989 and
126,612,183 shares issued and outstanding, respectively
|
1,270
|
|
1,269
|
|
1,266
|
|
Additional paid-in capital
|
1,019,647
|
|
1,017,189
|
|
1,010,405
|
|
Retained earnings
|
641,727
|
|
632,476
|
|
609,529
|
|
Accumulated other comprehensive loss
|
(171,158)
|
|
(191,148)
|
|
(37,629)
|
|
Total shareholders' equity
|
1,491,486
|
|
1,459,786
|
|
1,583,571
|
|
Total liabilities and shareholders' equity
|
$ 14,113,324
|
|
13,953,144
|
|
14,501,508
|
|
Equity to assets
|
10.57 %
|
|
10.46 %
|
|
10.92 %
|
|
Tangible common equity to assets*
|
8.03 %
|
|
7.88 %
|
|
8.43 %
|
|
Book value per share
|
$ 11.74
|
|
11.50
|
|
12.51
|
|
Tangible book value per share*
|
$ 8.67
|
|
8.42
|
|
9.40
|
|
Closing market price per share
|
$ 13.98
|
|
13.51
|
|
14.16
|
|
Full time equivalent employees
|
2,160
|
|
2,191
|
|
2,332
|
|
Number of banking offices
|
150
|
|
150
|
|
170
|
|
*
|
Excludes goodwill and other intangible assets (non-GAAP).
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Consolidated Statements of Income (Unaudited)
|
|
(dollars in thousands, except per share amounts)
|
|
|
Quarter ended
|
|
December 31,
2022
|
|
September 30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
|
|
|
|
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
|
$ 117,137
|
|
106,943
|
|
95,574
|
|
88,174
|
|
95,295
|
|
Mortgage-backed securities
|
8,603
|
|
8,683
|
|
7,158
|
|
6,360
|
|
5,743
|
|
Taxable investment securities
|
840
|
|
838
|
|
715
|
|
677
|
|
640
|
|
Tax-free investment securities
|
701
|
|
709
|
|
683
|
|
674
|
|
688
|
|
FHLB stock dividends
|
419
|
|
148
|
|
82
|
|
81
|
|
82
|
|
Interest-earning deposits
|
153
|
|
1,295
|
|
1,684
|
|
467
|
|
467
|
|
Total interest income
|
127,853
|
|
118,616
|
|
105,896
|
|
96,433
|
|
102,915
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
3,871
|
|
3,157
|
|
3,341
|
|
3,751
|
|
4,295
|
|
Borrowed funds
|
6,938
|
|
2,710
|
|
2,290
|
|
2,059
|
|
1,964
|
|
Total interest expense
|
10,809
|
|
5,867
|
|
5,631
|
|
5,810
|
|
6,259
|
|
Net interest income
|
117,044
|
|
112,749
|
|
100,265
|
|
90,623
|
|
96,656
|
|
Provision for credit losses
|
9,023
|
|
7,689
|
|
2,629
|
|
(1,481)
|
|
(1,909)
|
|
Net interest income after provision for credit losses
|
108,021
|
|
105,060
|
|
97,636
|
|
92,104
|
|
98,565
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of investments
|
(1)
|
|
(2)
|
|
(3)
|
|
(2)
|
|
(4)
|
|
Service charges and fees
|
14,125
|
|
14,323
|
|
13,673
|
|
13,067
|
|
13,500
|
|
Trust and other financial services income
|
6,642
|
|
6,650
|
|
7,461
|
|
7,012
|
|
6,820
|
|
Gain/(loss) on real estate owned, net
|
51
|
|
290
|
|
291
|
|
(29)
|
|
71
|
|
Income from bank-owned life insurance
|
1,663
|
|
1,475
|
|
2,008
|
|
1,983
|
|
1,343
|
|
Mortgage banking income
|
477
|
|
766
|
|
2,157
|
|
1,465
|
|
2,120
|
|
Other operating income
|
4,901
|
|
3,301
|
|
4,861
|
|
2,244
|
|
3,192
|
|
Total noninterest income
|
27,858
|
|
26,803
|
|
30,448
|
|
25,740
|
|
27,042
|
|
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
46,658
|
|
46,711
|
|
48,073
|
|
46,917
|
|
48,691
|
|
Premises and occupancy costs
|
7,370
|
|
7,171
|
|
7,280
|
|
7,797
|
|
7,104
|
|
Office operations
|
3,544
|
|
3,229
|
|
3,162
|
|
3,383
|
|
3,144
|
|
Collections expense
|
563
|
|
322
|
|
403
|
|
520
|
|
602
|
|
Processing expenses
|
13,585
|
|
13,416
|
|
12,947
|
|
12,548
|
|
13,639
|
|
Marketing expenses
|
2,773
|
|
2,147
|
|
2,047
|
|
2,128
|
|
2,054
|
|
Federal deposit insurance premiums
|
1,319
|
|
1,200
|
|
1,130
|
|
1,129
|
|
1,131
|
|
Professional services
|
5,434
|
|
3,363
|
|
3,333
|
|
2,573
|
|
4,513
|
|
Amortization of intangible assets
|
932
|
|
1,047
|
|
1,115
|
|
1,183
|
|
1,205
|
|
Real estate owned expense
|
53
|
|
61
|
|
72
|
|
37
|
|
44
|
|
Merger, asset disposition and restructuring expense
|
4,243
|
|
—
|
|
—
|
|
1,374
|
|
2,812
|
|
Other expenses
|
4,180
|
|
3,906
|
|
5,245
|
|
2,355
|
|
1,346
|
|
Total noninterest expense
|
90,654
|
|
82,573
|
|
84,807
|
|
81,944
|
|
86,285
|
|
Income before income taxes
|
45,225
|
|
49,290
|
|
43,277
|
|
35,900
|
|
39,322
|
|
Income tax expense
|
10,576
|
|
11,986
|
|
9,851
|
|
7,613
|
|
9,266
|
|
Net income
|
$ 34,649
|
|
37,304
|
|
33,426
|
|
28,287
|
|
30,056
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
$ 0.27
|
|
0.29
|
|
0.26
|
|
0.22
|
|
0.24
|
|
Diluted earnings per share
|
$ 0.27
|
|
0.29
|
|
0.26
|
|
0.22
|
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average equity
|
9.38 %
|
|
9.84 %
|
|
8.90 %
|
|
7.17 %
|
|
7.65 %
|
|
Annualized return on average assets
|
0.98 %
|
|
1.05 %
|
|
0.94 %
|
|
0.80 %
|
|
0.82 %
|
|
Annualized return on tangible common equity *
|
12.48 %
|
|
13.84 %
|
|
12.16 %
|
|
10.14 %
|
|
10.02 %
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio **
|
58.99 %
|
|
58.42 %
|
|
64.03 %
|
|
68.22 %
|
|
66.51 %
|
|
Annualized noninterest expense to average assets ***
|
2.43 %
|
|
2.30 %
|
|
2.35 %
|
|
2.23 %
|
|
2.25 %
|
|
*
|
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 Subsidiaries
|
|
Consolidated Statements of Income (Unaudited)
|
|
(dollars in thousands, except per share amounts)
|
|
|
Year ended December 31,
|
|
2022
|
|
2021
|
|
Interest income:
|
|
|
|
|
Loans receivable
|
$ 407,828
|
|
390,343
|
|
Mortgage-backed securities
|
30,804
|
|
21,463
|
|
Taxable investment securities
|
3,070
|
|
2,616
|
|
Tax-free investment securities
|
2,767
|
|
2,485
|
|
FHLB stock dividends
|
730
|
|
407
|
|
Interest-earning deposits
|
3,599
|
|
1,194
|
|
Total interest income
|
448,798
|
|
418,508
|
|
Interest expense:
|
|
|
|
|
Deposits
|
14,120
|
|
19,122
|
|
Borrowed funds
|
13,997
|
|
8,124
|
|
Total interest expense
|
28,117
|
|
27,246
|
|
Net interest income
|
420,681
|
|
391,262
|
|
Provision for credit losses
|
17,860
|
|
(11,883)
|
|
Net interest income after provision for credit losses
|
402,821
|
|
403,145
|
|
Noninterest income:
|
|
|
|
|
Loss on sale of investments
|
(8)
|
|
(176)
|
|
Service charges and fees
|
55,188
|
|
51,837
|
|
Trust and other financial services income
|
27,765
|
|
27,921
|
|
Insurance commission income
|
—
|
|
3,633
|
|
Gain on real estate owned, net
|
603
|
|
442
|
|
Income from bank-owned life insurance
|
7,129
|
|
6,050
|
|
Mortgage banking income
|
4,865
|
|
15,892
|
|
Gain on sale of insurance business
|
—
|
|
25,327
|
|
Other operating income
|
15,307
|
|
11,963
|
|
Total noninterest income
|
110,849
|
|
142,889
|
|
Noninterest expense:
|
|
|
|
|
Compensation and employee benefits
|
188,359
|
|
193,887
|
|
Premises and occupancy costs
|
29,618
|
|
31,073
|
|
Office operations
|
13,318
|
|
13,769
|
|
Collections expense
|
1,808
|
|
1,932
|
|
Processing expenses
|
52,496
|
|
55,763
|
|
Marketing expenses
|
9,095
|
|
8,237
|
|
Federal deposit insurance premiums
|
4,778
|
|
4,975
|
|
Professional services
|
14,703
|
|
17,621
|
|
Amortization of intangible assets
|
4,277
|
|
5,553
|
|
Real estate owned expense
|
223
|
|
298
|
|
Merger, asset disposition and restructuring expense
|
5,617
|
|
3,453
|
|
Other expenses
|
15,686
|
|
8,349
|
|
Total noninterest expense
|
339,978
|
|
344,910
|
|
Income before income taxes
|
173,692
|
|
201,124
|
|
Income tax expense
|
40,026
|
|
46,801
|
|
Net income
|
$ 133,666
|
|
154,323
|
|
|
|
|
|
Basic earnings per share
|
$ 1.05
|
|
1.22
|
|
Diluted earnings per share
|
$ 1.05
|
|
1.21
|
|
|
|
|
|
Return on average equity
|
8.80 %
|
|
9.91 %
|
|
Return on average assets
|
0.94 %
|
|
1.08 %
|
|
Return on tangible common equity *
|
12.13 %
|
|
12.97 %
|
|
|
|
|
|
Efficiency ratio **
|
62.10 %
|
|
66.02 %
|
|
Noninterest expense to average assets ***
|
2.33 %
|
|
2.35 %
|
|
*
|
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 Subsidiaries
|
|
Reconciliation of Non-GAAP to GAAP Net Income (Unaudited) *
|
|
(dollars in thousands, except per share amounts)
|
|
|
Quarter ended December 31,
|
|
Year ended December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Operating results (non-GAAP):
|
|
|
|
|
|
|
|
|
Net interest income
|
$ 117,044
|
|
96,656
|
|
420,681
|
|
391,262
|
|
Provision for credit losses
|
9,023
|
|
(1,909)
|
|
17,860
|
|
(11,883)
|
|
Noninterest income
|
27,858
|
|
27,042
|
|
110,849
|
|
117,562
|
|
Noninterest expense
|
86,411
|
|
83,473
|
|
334,361
|
|
341,457
|
|
Income taxes
|
11,764
|
|
10,053
|
|
41,599
|
|
40,676
|
|
Net operating income (non-GAAP)
|
$ 37,704
|
|
32,081
|
|
137,710
|
|
138,574
|
|
Diluted earnings per share (non-GAAP)
|
$ 0.30
|
|
0.25
|
|
1.08
|
|
1.08
|
|
|
|
|
|
|
|
|
|
Average equity
|
$ 1,465,285
|
|
1,559,627
|
|
1,518,704
|
|
1,557,582
|
|
Average assets
|
13,983,100
|
|
14,474,091
|
|
14,177,698
|
|
14,308,334
|
|
Annualized return on average equity (non-GAAP)
|
10.21 %
|
|
8.16 %
|
|
9.07 %
|
|
8.90 %
|
|
Annualized return on average assets (non-GAAP)
|
1.07 %
|
|
0.88 %
|
|
0.97 %
|
|
0.97 %
|
|
|
|
|
|
|
|
|
|
Reconciliation of net operating income to net income:
|
|
|
|
|
|
|
|
|
Net operating income (non-GAAP)
|
$ 37,704
|
|
32,081
|
|
137,710
|
|
138,574
|
|
Non-GAAP adjustments, net of tax:
|
|
|
|
|
|
|
|
|
Gain on sale of insurance business
|
—
|
|
—
|
|
—
|
|
18,235
|
|
Merger/asset disposition expense
|
(3,055)
|
|
(2,025)
|
|
(4,044)
|
|
(2,486)
|
|
Net income (GAAP)
|
$ 34,649
|
|
30,056
|
|
133,666
|
|
154,323
|
|
Diluted earnings per share (GAAP)
|
$ 0.27
|
|
0.24
|
|
1.05
|
|
1.21
|
|
|
|
|
|
|
|
|
|
Annualized return on average equity (GAAP)
|
9.38 %
|
|
7.65 %
|
|
8.80 %
|
|
9.91 %
|
|
Annualized return on average assets (GAAP)
|
0.98 %
|
|
0.82 %
|
|
0.94 %
|
|
1.08 %
|
|
*
|
The table summarizes the Company's results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude the gain on the sale of our insurance business and merger, asset disposition and restructuring expense. The net tax effect was calculated using statutory tax rates of approximately 28.0%. The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Asset Quality (Unaudited)
|
|
(dollars in thousands)
|
|
|
December 31,
2022
|
|
September 30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
Nonaccrual loans current:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
$ 1,496
|
|
2,186
|
|
1,970
|
|
1,884
|
|
1,354
|
|
Home equity loans
|
1,418
|
|
1,158
|
|
1,337
|
|
1,376
|
|
1,212
|
|
Consumer loans
|
836
|
|
833
|
|
976
|
|
1,148
|
|
1,336
|
|
Commercial real estate loans
|
53,303
|
|
56,193
|
|
60,537
|
|
79,810
|
|
106,233
|
|
Commercial loans
|
895
|
|
1,801
|
|
5,270
|
|
6,060
|
|
6,098
|
|
Total nonaccrual loans current
|
$ 57,948
|
|
62,171
|
|
70,090
|
|
90,278
|
|
116,233
|
|
Nonaccrual loans delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
$ 473
|
|
54
|
|
2
|
|
760
|
|
244
|
|
Home equity loans
|
180
|
|
316
|
|
172
|
|
195
|
|
223
|
|
Consumer loans
|
178
|
|
155
|
|
158
|
|
190
|
|
241
|
|
Commercial real estate loans
|
1,220
|
|
55
|
|
911
|
|
333
|
|
239
|
|
Commercial loans
|
145
|
|
237
|
|
358
|
|
4
|
|
53
|
|
Total nonaccrual loans delinquent 30 days to 59 days
|
$ 2,196
|
|
817
|
|
1,601
|
|
1,482
|
|
1,000
|
|
Nonaccrual loans delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
$ 31
|
|
32
|
|
199
|
|
830
|
|
1,163
|
|
Home equity loans
|
290
|
|
432
|
|
566
|
|
371
|
|
61
|
|
Consumer loans
|
341
|
|
382
|
|
226
|
|
280
|
|
292
|
|
Commercial real estate loans
|
473
|
|
848
|
|
630
|
|
—
|
|
364
|
|
Commercial loans
|
96
|
|
132
|
|
73
|
|
—
|
|
218
|
|
Total nonaccrual loans delinquent 60 days to 89 days
|
$ 1,231
|
|
1,826
|
|
1,694
|
|
1,481
|
|
2,098
|
|
Nonaccrual loans delinquent 90 days or more:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
$ 5,574
|
|
5,544
|
|
5,445
|
|
3,976
|
|
7,641
|
|
Home equity loans
|
2,257
|
|
1,779
|
|
2,081
|
|
2,968
|
|
4,262
|
|
Consumer loans
|
2,672
|
|
2,031
|
|
1,942
|
|
1,782
|
|
2,069
|
|
Commercial real estate loans
|
7,867
|
|
8,821
|
|
14,949
|
|
21,399
|
|
24,063
|
|
Commercial loans
|
1,491
|
|
638
|
|
583
|
|
795
|
|
1,105
|
|
Total nonaccrual loans delinquent 90 days or more
|
$ 19,861
|
|
18,813
|
|
25,000
|
|
30,920
|
|
39,140
|
|
Total nonaccrual loans
|
$ 81,236
|
|
83,627
|
|
98,385
|
|
124,161
|
|
158,471
|
|
Total nonaccrual loans
|
$ 81,236
|
|
83,627
|
|
98,385
|
|
124,161
|
|
158,471
|
|
Loans 90 days past due and still accruing
|
744
|
|
357
|
|
379
|
|
420
|
|
331
|
|
Nonperforming loans
|
81,980
|
|
83,984
|
|
98,764
|
|
124,581
|
|
158,802
|
|
Real estate owned, net
|
413
|
|
450
|
|
1,205
|
|
929
|
|
873
|
|
Nonperforming assets
|
$ 82,393
|
|
84,434
|
|
99,969
|
|
125,510
|
|
159,675
|
|
Nonaccrual troubled debt restructuring *
|
$ 29,239
|
|
30,406
|
|
37,647
|
|
16,015
|
|
17,216
|
|
Accruing troubled debt restructuring
|
11,442
|
|
16,344
|
|
16,590
|
|
12,686
|
|
13,072
|
|
Total troubled debt restructuring
|
$ 40,681
|
|
46,750
|
|
54,237
|
|
28,701
|
|
30,288
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans
|
0.75 %
|
|
0.78 %
|
|
0.95 %
|
|
1.23 %
|
|
1.59 %
|
|
Nonperforming assets to total assets
|
0.58 %
|
|
0.61 %
|
|
0.71 %
|
|
0.87 %
|
|
1.10 %
|
|
Allowance for credit losses to total loans
|
1.08 %
|
|
1.02 %
|
|
0.94 %
|
|
0.98 %
|
|
1.02 %
|
|
Allowance for total loans excluding PPP loan balances
|
1.08 %
|
|
1.02 %
|
|
0.95 %
|
|
0.98 %
|
|
1.03 %
|
|
Allowance for credit losses to nonperforming loans
|
143.98 %
|
|
130.76 %
|
|
99.59 %
|
|
79.70 %
|
|
64.38 %
|
|
*
|
Amounts included in nonperforming loans above.
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Loans by Credit Quality Indicators (Unaudited)
|
|
(dollars in thousands)
|
|
|
At December 31, 2022
|
|
Pass
|
|
Special
mention *
|
|
Substandard
**
|
|
Doubtful
|
|
Loss
|
|
Loans
receivable
|
|
Personal Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
|
$ 3,484,870
|
|
—
|
|
13,729
|
|
—
|
|
—
|
|
3,498,599
|
|
Home equity loans
|
|
1,292,146
|
|
—
|
|
5,528
|
|
—
|
|
—
|
|
1,297,674
|
|
Consumer loans
|
|
2,164,220
|
|
—
|
|
4,435
|
|
—
|
|
—
|
|
2,168,655
|
|
Total Personal Banking
|
|
6,941,236
|
|
—
|
|
23,692
|
|
—
|
|
—
|
|
6,964,928
|
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans
|
|
2,579,809
|
|
55,076
|
|
188,670
|
|
—
|
|
—
|
|
2,823,555
|
|
Commercial loans
|
|
1,100,707
|
|
7,384
|
|
23,878
|
|
—
|
|
—
|
|
1,131,969
|
|
Total Commercial Banking
|
|
3,680,516
|
|
62,460
|
|
212,548
|
|
—
|
|
—
|
|
3,955,524
|
|
Total loans
|
|
$ 10,621,752
|
|
62,460
|
|
236,240
|
|
—
|
|
—
|
|
10,920,452
|
|
At September 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
|
$ 3,388,168
|
|
—
|
|
13,730
|
|
—
|
|
—
|
|
3,401,898
|
|
Home equity loans
|
|
1,279,968
|
|
—
|
|
5,021
|
|
—
|
|
—
|
|
1,284,989
|
|
Consumer loans
|
|
2,112,478
|
|
—
|
|
3,760
|
|
—
|
|
—
|
|
2,116,238
|
|
Total Personal Banking
|
|
6,780,614
|
|
—
|
|
22,511
|
|
—
|
|
—
|
|
6,803,125
|
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans
|
|
2,589,648
|
|
34,684
|
|
188,498
|
|
—
|
|
—
|
|
2,812,830
|
|
Commercial loans
|
|
1,094,830
|
|
4,004
|
|
26,736
|
|
—
|
|
—
|
|
1,125,570
|
|
Total Commercial Banking
|
|
3,684,478
|
|
38,688
|
|
215,234
|
|
—
|
|
—
|
|
3,938,400
|
|
Total loans
|
|
$ 10,465,092
|
|
38,688
|
|
237,745
|
|
—
|
|
—
|
|
10,741,525
|
|
At June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
|
$ 3,273,117
|
|
—
|
|
13,658
|
|
—
|
|
—
|
|
3,286,775
|
|
Home equity loans
|
|
1,275,124
|
|
—
|
|
5,368
|
|
—
|
|
—
|
|
1,280,492
|
|
Consumer loans
|
|
1,998,863
|
|
—
|
|
3,682
|
|
—
|
|
—
|
|
2,002,545
|
|
Total Personal Banking
|
|
6,547,104
|
|
—
|
|
22,708
|
|
—
|
|
—
|
|
6,569,812
|
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans
|
|
2,600,207
|
|
51,540
|
|
224,429
|
|
—
|
|
—
|
|
2,876,176
|
|
Commercial loans
|
|
954,129
|
|
2,468
|
|
30,239
|
|
—
|
|
—
|
|
986,836
|
|
Total Commercial Banking
|
|
3,554,336
|
|
54,008
|
|
254,668
|
|
—
|
|
—
|
|
3,863,012
|
|
Total loans
|
|
$ 10,101,440
|
|
54,008
|
|
277,376
|
|
—
|
|
—
|
|
10,432,824
|
|
At March 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
|
$ 3,108,366
|
|
—
|
|
13,523
|
|
—
|
|
—
|
|
3,121,889
|
|
Home equity loans
|
|
1,280,342
|
|
—
|
|
6,178
|
|
—
|
|
—
|
|
1,286,520
|
|
Consumer loans
|
|
1,892,162
|
|
—
|
|
3,819
|
|
—
|
|
—
|
|
1,895,981
|
|
Total Personal Banking
|
|
6,280,870
|
|
—
|
|
23,520
|
|
—
|
|
—
|
|
6,304,390
|
|
Commercial Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans
|
|
2,633,808
|
|
62,091
|
|
263,994
|
|
—
|
|
—
|
|
2,959,893
|
|
Commercial loans
|
|
839,125
|
|
3,277
|
|
32,349
|
|
—
|
|
—
|
|
874,751
|
|
Total Commercial Banking
|
|
3,472,933
|
|
65,368
|
|
296,343
|
|
—
|
|
—
|
|
3,834,644
|
|
Total loans
|
|
$ 9,753,803
|
|
65,368
|
|
319,863
|
|
—
|
|
—
|
|
10,139,034
|
|
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
|
|
*
|
Includes $7.4 million, $4.5 million, $7.4 million, $4.4 million, and $14.9 million of acquired loans at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively.
|
|
**
|
Includes $39.1 million, $51.4 million, $59.3 million, $71.9 million, and $81.5 million of acquired loans at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively.
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Loan Delinquency (Unaudited)
|
|
(dollars in thousands)
|
|
|
December 31,
2022
|
|
*
|
|
September 30,
2022
|
|
*
|
|
June 30,
2022
|
|
*
|
|
March 31,
2022
|
|
*
|
|
December 31,
2021
|
|
*
|
|
(Number of loans and dollar amount of loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
304
|
|
$ 29,487
|
|
0.8 %
|
|
26
|
|
$ 1,052
|
|
— %
|
|
20
|
|
$ 785
|
|
— %
|
|
281
|
|
$ 24,057
|
|
0.8 %
|
|
277
|
|
$ 20,567
|
|
0.7 %
|
|
Home equity loans
|
145
|
|
6,657
|
|
0.5 %
|
|
88
|
|
3,278
|
|
0.3 %
|
|
107
|
|
3,664
|
|
0.3 %
|
|
105
|
|
3,867
|
|
0.3 %
|
|
112
|
|
3,153
|
|
0.2 %
|
|
Consumer loans
|
737
|
|
9,435
|
|
0.4 %
|
|
549
|
|
6,546
|
|
0.3 %
|
|
563
|
|
6,898
|
|
0.3 %
|
|
523
|
|
6,043
|
|
0.3 %
|
|
589
|
|
6,536
|
|
0.4 %
|
|
Commercial real estate loans
|
29
|
|
4,008
|
|
0.1 %
|
|
13
|
|
1,332
|
|
— %
|
|
26
|
|
2,701
|
|
0.1 %
|
|
25
|
|
3,643
|
|
0.1 %
|
|
17
|
|
17,065
|
|
0.6 %
|
|
Commercial loans
|
51
|
|
2,648
|
|
0.2 %
|
|
48
|
|
2,582
|
|
0.2 %
|
|
24
|
|
1,486
|
|
0.2 %
|
|
16
|
|
1,268
|
|
0.1 %
|
|
12
|
|
193
|
|
— %
|
|
Total loans delinquent 30 days to 59 days
|
1,266
|
|
$ 52,235
|
|
0.5 %
|
|
724
|
|
$ 14,790
|
|
0.1 %
|
|
740
|
|
$ 15,534
|
|
0.1 %
|
|
950
|
|
$ 38,878
|
|
0.4 %
|
|
1,007
|
|
$ 47,514
|
|
0.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
65
|
|
$ 5,563
|
|
0.2 %
|
|
51
|
|
$ 4,320
|
|
0.1 %
|
|
61
|
|
$ 5,941
|
|
0.2 %
|
|
24
|
|
$ 1,950
|
|
0.1 %
|
|
59
|
|
$ 5,433
|
|
0.2 %
|
|
Home equity loans
|
29
|
|
975
|
|
0.1 %
|
|
36
|
|
1,227
|
|
0.1 %
|
|
28
|
|
952
|
|
0.1 %
|
|
28
|
|
1,138
|
|
0.1 %
|
|
30
|
|
949
|
|
0.1 %
|
|
Consumer loans
|
255
|
|
3,070
|
|
0.1 %
|
|
223
|
|
2,663
|
|
0.1 %
|
|
178
|
|
1,460
|
|
0.1 %
|
|
159
|
|
1,839
|
|
0.1 %
|
|
195
|
|
2,006
|
|
0.1 %
|
|
Commercial real estate loans
|
16
|
|
2,377
|
|
0.1 %
|
|
13
|
|
1,741
|
|
0.1 %
|
|
9
|
|
1,472
|
|
0.1 %
|
|
1
|
|
112
|
|
— %
|
|
5
|
|
769
|
|
— %
|
|
Commercial loans
|
24
|
|
1,115
|
|
0.1 %
|
|
14
|
|
808
|
|
0.1 %
|
|
6
|
|
341
|
|
— %
|
|
3
|
|
103
|
|
— %
|
|
10
|
|
727
|
|
0.1 %
|
|
Total loans delinquent 60 days to 89 days
|
389
|
|
$ 13,100
|
|
0.1 %
|
|
337
|
|
$ 10,759
|
|
0.1 %
|
|
282
|
|
$ 10,166
|
|
0.1 %
|
|
215
|
|
$ 5,142
|
|
0.1 %
|
|
299
|
|
$ 9,884
|
|
0.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90 days or more: **
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
65
|
|
$ 5,574
|
|
0.2 %
|
|
64
|
|
$ 5,544
|
|
0.2 %
|
|
63
|
|
$ 5,445
|
|
0.2 %
|
|
47
|
|
$ 3,976
|
|
0.1 %
|
|
87
|
|
$ 7,641
|
|
0.3 %
|
|
Home equity loans
|
68
|
|
2,257
|
|
0.2 %
|
|
65
|
|
1,779
|
|
0.1 %
|
|
69
|
|
2,081
|
|
0.2 %
|
|
91
|
|
2,968
|
|
0.2 %
|
|
105
|
|
4,262
|
|
0.3 %
|
|
Consumer loans
|
334
|
|
3,079
|
|
0.1 %
|
|
289
|
|
2,388
|
|
0.1 %
|
|
286
|
|
2,321
|
|
0.1 %
|
|
287
|
|
2,202
|
|
0.1 %
|
|
296
|
|
2,400
|
|
0.1 %
|
|
Commercial real estate loans
|
19
|
|
7,867
|
|
0.3 %
|
|
22
|
|
8,821
|
|
0.3 %
|
|
31
|
|
14,949
|
|
0.5 %
|
|
41
|
|
21,399
|
|
0.7 %
|
|
52
|
|
24,063
|
|
0.8 %
|
|
Commercial loans
|
15
|
|
1,829
|
|
0.2 %
|
|
11
|
|
638
|
|
0.1 %
|
|
10
|
|
583
|
|
0.1 %
|
|
10
|
|
795
|
|
0.1 %
|
|
8
|
|
1,105
|
|
0.1 %
|
|
Total loans delinquent 90 days or more
|
501
|
|
$ 20,606
|
|
0.2 %
|
|
451
|
|
$ 19,170
|
|
0.2 %
|
|
459
|
|
$ 25,379
|
|
0.2 %
|
|
476
|
|
$ 31,340
|
|
0.3 %
|
|
548
|
|
$ 39,471
|
|
0.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans delinquent
|
2,156
|
|
$ 85,941
|
|
0.8 %
|
|
1,512
|
|
$ 44,719
|
|
0.4 %
|
|
1,481
|
|
$ 51,079
|
|
0.5 %
|
|
1,641
|
|
$ 75,360
|
|
0.7 %
|
|
1,854
|
|
$ 96,869
|
|
1.0 %
|
|
*
|
Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
|
|
**
|
Includes purchased credit deteriorated loans of $1.7 million, $783,000, $6.3 million, $7.1 million, and $7.3 million at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively.
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Allowance for Credit Losses (Unaudited)
|
|
(dollars in thousands)
|
|
|
Quarter ended
|
|
December 31,
2022
|
|
September 30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
Beginning balance
|
$ 109,819
|
|
98,355
|
|
99,295
|
|
102,241
|
|
109,767
|
|
Provision
|
9,023
|
|
7,689
|
|
2,629
|
|
(1,481)
|
|
(1,909)
|
|
Charge-offs residential mortgage
|
(546)
|
|
(166)
|
|
(138)
|
|
(1,183)
|
|
(784)
|
|
Charge-offs home equity
|
(232)
|
|
(535)
|
|
(255)
|
|
(447)
|
|
(1,299)
|
|
Charge-offs consumer
|
(2,430)
|
|
(2,341)
|
|
(1,912)
|
|
(1,723)
|
|
(2,897)
|
|
Charge-offs commercial real estate
|
(621)
|
|
(1,329)
|
|
(4,392)
|
|
(1,024)
|
|
(2,652)
|
|
Charge-offs commercial
|
(404)
|
|
(243)
|
|
(329)
|
|
(681)
|
|
(2,586)
|
|
Recoveries
|
3,427
|
|
8,389
|
|
3,457
|
|
3,593
|
|
4,601
|
|
Ending balance
|
$ 118,036
|
|
109,819
|
|
98,355
|
|
99,295
|
|
102,241
|
|
Net (recoveries)/charge-offs to average loans, annualized
|
0.03 %
|
|
(0.14) %
|
|
0.14 %
|
|
0.06 %
|
|
0.22 %
|
|
Year ended December 31,
|
|
2022
|
|
2021
|
|
Beginning balance
|
$ 102,241
|
|
134,427
|
|
Provision
|
17,860
|
|
(11,883)
|
|
Charge-offs residential mortgage
|
(2,033)
|
|
(3,672)
|
|
Charge-offs home equity
|
(1,469)
|
|
(3,380)
|
|
Charge-offs consumer
|
(8,406)
|
|
(10,049)
|
|
Charge-offs commercial real estate
|
(7,366)
|
|
(12,823)
|
|
Charge-offs commercial
|
(1,657)
|
|
(4,213)
|
|
Recoveries
|
18,866
|
|
13,834
|
|
Ending balance
|
$ 118,036
|
|
102,241
|
|
Net charge-offs to average loans
|
0.02 %
|
|
0.20 %
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Average Balance Sheet (Unaudited)
|
|
(dollars in thousands)
|
|
|
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the
average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
|
|
|
Quarter ended
|
|
December 31, 2022
|
|
September 30, 2022
|
|
June 30, 2022
|
|
March 31, 2022
|
|
December 31, 2021
|
|
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
|
$ 3,439,401
|
|
30,974
|
|
3.60 %
|
|
$ 3,331,173
|
|
29,414
|
|
3.53 %
|
|
$ 3,171,469
|
|
27,327
|
|
3.45 %
|
|
$ 2,980,788
|
|
25,542
|
|
3.43 %
|
|
$ 2,977,942
|
|
25,269
|
|
3.39 %
|
|
Home equity loans
|
1,282,733
|
|
15,264
|
|
4.72 %
|
|
1,274,918
|
|
13,658
|
|
4.25 %
|
|
1,277,440
|
|
11,961
|
|
3.76 %
|
|
1,293,986
|
|
11,472
|
|
3.60 %
|
|
1,328,553
|
|
11,750
|
|
3.51 %
|
|
Consumer loans
|
2,069,207
|
|
19,709
|
|
3.78 %
|
|
1,981,754
|
|
17,256
|
|
3.45 %
|
|
1,880,769
|
|
15,777
|
|
3.36 %
|
|
1,799,037
|
|
14,907
|
|
3.36 %
|
|
1,756,620
|
|
15,514
|
|
3.50 %
|
|
Commercial real estate loans
|
2,822,008
|
|
35,428
|
|
4.91 %
|
|
2,842,597
|
|
34,158
|
|
4.70 %
|
|
2,915,750
|
|
31,844
|
|
4.32 %
|
|
3,000,204
|
|
29,757
|
|
3.97 %
|
|
3,113,924
|
|
34,062
|
|
4.28 %
|
|
Commercial loans
|
1,113,178
|
|
16,315
|
|
5.74 %
|
|
1,050,124
|
|
12,978
|
|
4.84 %
|
|
912,454
|
|
9,090
|
|
3.94 %
|
|
824,770
|
|
6,897
|
|
3.34 %
|
|
855,998
|
|
9,154
|
|
4.18 %
|
|
Total loans receivable (a) (b) (d)
|
10,726,527
|
|
117,690
|
|
4.35 %
|
|
10,480,566
|
|
107,464
|
|
4.07 %
|
|
10,157,882
|
|
95,999
|
|
3.79 %
|
|
9,898,785
|
|
88,575
|
|
3.63 %
|
|
10,033,037
|
|
95,749
|
|
3.79 %
|
|
Mortgage-backed securities (c)
|
1,956,167
|
|
8,603
|
|
1.76 %
|
|
2,019,715
|
|
8,683
|
|
1.72 %
|
|
1,952,375
|
|
7,158
|
|
1.47 %
|
|
1,945,173
|
|
6,360
|
|
1.31 %
|
|
1,894,683
|
|
5,743
|
|
1.21 %
|
|
Investment securities (c) (d)
|
386,468
|
|
1,753
|
|
1.81 %
|
|
388,755
|
|
1,762
|
|
1.81 %
|
|
376,935
|
|
1,590
|
|
1.69 %
|
|
373,694
|
|
1,540
|
|
1.65 %
|
|
358,558
|
|
1,535
|
|
1.71 %
|
|
FHLB stock, at cost
|
26,827
|
|
419
|
|
6.19 %
|
|
14,028
|
|
148
|
|
4.19 %
|
|
13,428
|
|
82
|
|
2.44 %
|
|
13,870
|
|
81
|
|
2.38 %
|
|
14,459
|
|
82
|
|
2.25 %
|
|
Other interest-earning deposits
|
9,990
|
|
153
|
|
5.99 %
|
|
253,192
|
|
1,295
|
|
2.00 %
|
|
846,142
|
|
1,684
|
|
0.79 %
|
|
1,218,960
|
|
467
|
|
0.15 %
|
|
1,168,449
|
|
467
|
|
0.16 %
|
|
Total interest-earning assets
|
13,105,979
|
|
128,618
|
|
3.89 %
|
|
13,156,256
|
|
119,352
|
|
3.60 %
|
|
13,346,762
|
|
106,513
|
|
3.20 %
|
|
13,450,482
|
|
97,023
|
|
2.93 %
|
|
13,469,186
|
|
103,576
|
|
3.05 %
|
|
Noninterest-earning assets (e)
|
877,121
|
|
|
|
|
|
896,663
|
|
|
|
|
|
909,943
|
|
|
|
|
|
973,092
|
|
|
|
|
|
1,004,905
|
|
|
|
|
|
Total assets
|
$ 13,983,100
|
|
|
|
|
|
$ 14,052,919
|
|
|
|
|
|
$ 14,256,705
|
|
|
|
|
|
$ 14,423,574
|
|
|
|
|
|
$ 14,474,091
|
|
|
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits
|
$ 2,298,451
|
|
585
|
|
0.10 %
|
|
$ 2,350,248
|
|
594
|
|
0.10 %
|
|
$ 2,361,919
|
|
589
|
|
0.10 %
|
|
$ 2,334,494
|
|
592
|
|
0.10 %
|
|
$ 2,282,606
|
|
622
|
|
0.11 %
|
|
Interest-bearing demand deposits
|
2,718,360
|
|
509
|
|
0.07 %
|
|
2,794,338
|
|
360
|
|
0.05 %
|
|
2,857,336
|
|
310
|
|
0.04 %
|
|
2,875,430
|
|
321
|
|
0.05 %
|
|
2,933,466
|
|
411
|
|
0.06 %
|
|
Money market deposit accounts
|
2,512,892
|
|
1,310
|
|
0.21 %
|
|
2,620,850
|
|
692
|
|
0.10 %
|
|
2,653,467
|
|
668
|
|
0.10 %
|
|
2,668,105
|
|
653
|
|
0.10 %
|
|
2,618,177
|
|
656
|
|
0.10 %
|
|
Time deposits
|
1,024,895
|
|
1,467
|
|
0.57 %
|
|
1,110,906
|
|
1,511
|
|
0.54 %
|
|
1,220,815
|
|
1,774
|
|
0.58 %
|
|
1,292,608
|
|
2,185
|
|
0.69 %
|
|
1,356,513
|
|
2,606
|
|
0.76 %
|
|
Borrowed funds (f)
|
451,369
|
|
3,967
|
|
3.49 %
|
|
127,073
|
|
239
|
|
0.75 %
|
|
123,749
|
|
167
|
|
0.54 %
|
|
135,289
|
|
158
|
|
0.47 %
|
|
135,038
|
|
159
|
|
0.47 %
|
|
Subordinated debt
|
113,783
|
|
1,148
|
|
4.04 %
|
|
113,695
|
|
1,149
|
|
4.04 %
|
|
119,563
|
|
1,203
|
|
4.03 %
|
|
123,608
|
|
1,250
|
|
4.05 %
|
|
123,514
|
|
1,180
|
|
3.82 %
|
|
Junior subordinated debentures
|
129,271
|
|
1,823
|
|
5.52 %
|
|
129,207
|
|
1,322
|
|
4.00 %
|
|
129,142
|
|
920
|
|
2.82 %
|
|
129,077
|
|
651
|
|
2.02 %
|
|
129,012
|
|
625
|
|
1.89 %
|
|
Total interest-bearing liabilities
|
9,249,021
|
|
10,809
|
|
0.46 %
|
|
9,246,317
|
|
5,867
|
|
0.25 %
|
|
9,465,991
|
|
5,631
|
|
0.24 %
|
|
9,558,611
|
|
5,810
|
|
0.25 %
|
|
9,578,326
|
|
6,259
|
|
0.26 %
|
|
Noninterest-bearing demand deposits (g)
|
3,039,000
|
|
|
|
|
|
3,093,490
|
|
|
|
|
|
3,090,372
|
|
|
|
|
|
3,060,698
|
|
|
|
|
|
3,093,518
|
|
|
|
|
|
Noninterest-bearing liabilities
|
229,794
|
|
|
|
|
|
209,486
|
|
|
|
|
|
193,510
|
|
|
|
|
|
203,537
|
|
|
|
|
|
242,620
|
|
|
|
|
|
Total liabilities
|
12,517,815
|
|
|
|
|
|
12,549,293
|
|
|
|
|
|
12,749,873
|
|
|
|
|
|
12,822,846
|
|
|
|
|
|
12,914,464
|
|
|
|
|
|
Shareholders' equity
|
1,465,285
|
|
|
|
|
|
1,503,626
|
|
|
|
|
|
1,506,832
|
|
|
|
|
|
1,600,728
|
|
|
|
|
|
1,559,627
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$ 13,983,100
|
|
|
|
|
|
$ 14,052,919
|
|
|
|
|
|
$ 14,256,705
|
|
|
|
|
|
$ 14,423,574
|
|
|
|
|
|
$ 14,474,091
|
|
|
|
|
|
Net interest income/Interest rate spread
|
|
|
117,809
|
|
3.43 %
|
|
|
|
113,485
|
|
3.35 %
|
|
|
|
100,882
|
|
2.96 %
|
|
|
|
91,213
|
|
2.68 %
|
|
|
|
97,317
|
|
2.79 %
|
|
Net interest-earning assets/Net interest margin
|
$ 3,856,958
|
|
|
|
3.57 %
|
|
$ 3,909,939
|
|
|
|
3.42 %
|
|
$ 3,880,771
|
|
|
|
3.07 %
|
|
$ 3,891,871
|
|
|
|
2.75 %
|
|
$ 3,890,860
|
|
|
|
2.89 %
|
|
Ratio of interest-earning assets to interest-bearing liabilities
|
1.42X
|
|
|
|
|
|
1.42X
|
|
|
|
|
|
1.41X
|
|
|
|
|
|
1.41X
|
|
|
|
|
|
1.41X
|
|
|
|
|
|
|
|
(a)
|
Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
|
|
(b)
|
Interest income includes accretion/amortization of deferred loan fees/expenses, which was not material.
|
|
(c)
|
Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
|
|
(d)
|
Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis.
|
|
(e)
|
Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
|
|
(f)
|
Average balances include FHLB borrowings and collateralized borrowings.
|
|
(g)
|
Average cost of deposits were 0.13%, 0.11%, 0.11%, 0.12%, and 0.14%, respectively.
|
|
(h)
|
Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans — 4.33%, 4.05%, 3.77%, 3.61%, and 3.77%, respectively, Investment securities — 1.59%, 1.59%, 1.48%, 1.45%, and 1.48%, respectively, Interest-earning assets — 3.87%, 3.58%, 3.18%, 2.91%, and 3.03%, respectively. GAAP basis net interest rate spreads were 3.41%, 3.33%, 2.94%, 2.66%, and 2.77%, respectively, and GAAP basis net interest margins were 3.54%, 3.40%, 3.05%, 2.73%, and 2.87%, respectively.
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Average 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.
|
|
|
Year ended December 31,
|
|
2022
|
|
2021
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
$ 3,232,487
|
|
113,256
|
|
3.50 %
|
|
$ 2,969,939
|
|
102,642
|
|
3.46 %
|
|
Home equity loans
|
1,282,218
|
|
52,707
|
|
4.11 %
|
|
1,374,038
|
|
48,789
|
|
3.55 %
|
|
Consumer loans
|
1,933,557
|
|
67,296
|
|
3.48 %
|
|
1,635,613
|
|
60,854
|
|
3.72 %
|
|
Commercial real estate loans
|
2,894,508
|
|
131,230
|
|
4.47 %
|
|
3,222,272
|
|
141,186
|
|
4.32 %
|
|
Commercial loans
|
976,128
|
|
45,293
|
|
4.58 %
|
|
1,037,758
|
|
38,794
|
|
3.69 %
|
|
Loans receivable (a) (b) (d)
|
10,318,898
|
|
409,782
|
|
3.97 %
|
|
10,239,620
|
|
392,265
|
|
3.83 %
|
|
Mortgage-backed securities (c)
|
1,968,528
|
|
30,804
|
|
1.56 %
|
|
1,704,006
|
|
21,463
|
|
1.26 %
|
|
Investment securities (c) (d)
|
381,518
|
|
6,671
|
|
1.75 %
|
|
350,806
|
|
5,848
|
|
1.67 %
|
|
FHLB stock, at cost
|
17,065
|
|
730
|
|
4.27 %
|
|
20,229
|
|
407
|
|
2.01 %
|
|
Other interest-earning deposits
|
567,609
|
|
3,599
|
|
0.63 %
|
|
921,360
|
|
1,194
|
|
0.13 %
|
|
Total interest-earning assets
|
13,253,618
|
|
451,586
|
|
3.41 %
|
|
13,236,021
|
|
421,177
|
|
3.18 %
|
|
Noninterest-earning assets (e)
|
924,080
|
|
|
|
|
|
1,072,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$ 14,177,698
|
|
|
|
|
|
$ 14,308,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits
|
$ 2,336,217
|
|
2,343
|
|
0.10 %
|
|
$ 2,232,454
|
|
2,440
|
|
0.11 %
|
|
Interest-bearing demand deposits
|
2,810,889
|
|
1,517
|
|
0.05 %
|
|
2,862,677
|
|
1,660
|
|
0.06 %
|
|
Money market deposit accounts
|
2,613,422
|
|
3,377
|
|
0.13 %
|
|
2,554,975
|
|
2,570
|
|
0.10 %
|
|
Time deposits
|
1,161,432
|
|
6,883
|
|
0.59 %
|
|
1,463,522
|
|
12,452
|
|
0.85 %
|
|
Borrowed funds (f)
|
212,026
|
|
4,531
|
|
2.14 %
|
|
135,285
|
|
616
|
|
0.46 %
|
|
Subordinated debt
|
117,625
|
|
4,750
|
|
4.04 %
|
|
123,457
|
|
4,980
|
|
4.03 %
|
|
Junior subordinated debentures
|
129,175
|
|
4,716
|
|
3.60 %
|
|
128,915
|
|
2,528
|
|
1.93 %
|
|
Total interest-bearing liabilities
|
9,380,786
|
|
28,117
|
|
0.30 %
|
|
9,501,285
|
|
27,246
|
|
0.29 %
|
|
Noninterest-bearing demand deposits (g)
|
3,070,892
|
|
|
|
|
|
2,999,392
|
|
|
|
|
|
Noninterest-bearing liabilities
|
207,316
|
|
|
|
|
|
250,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
12,658,994
|
|
|
|
|
|
12,750,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
1,518,704
|
|
|
|
|
|
1,557,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$ 14,177,698
|
|
|
|
|
|
$ 14,308,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/Interest rate spread
|
|
|
423,469
|
|
3.11 %
|
|
|
|
393,931
|
|
2.89 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets/Net interest margin
|
$ 3,872,832
|
|
|
|
3.20 %
|
|
$ 3,734,736
|
|
|
|
2.98 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets to interest-bearing liabilities
|
1.41X
|
|
|
|
|
|
1.39X
|
|
|
|
|
|
|
|
(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)
|
Average cost of deposits were 0.12% and 0.16%, respectively.
|
|
(h)
|
Shown on a FTE basis. GAAP basis yields were: Loans — 3.95% and 3.81%, respectively; Investment securities — 1.53% and 1.45%, respectively; Interest-earning assets — 3.39% and 3.16%, respectively.
GAAP basis net interest rate spreads were 3.09% and 2.88%, respectively; and GAAP basis net interest margins were 3.17% and 2.96%, respectively.
|
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SOURCE Northwest Bancshares, Inc.
