WARREN, Pa., Oct. 26, 2020 /PRNewswire/ -- Northwest
Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net
income for the quarter ended September 30, 2020 of
$38.1 million, or $0.30 per diluted share. This represents an
increase of $4.6 million, or 13.9%,
compared to the same quarter last year when net income was
$33.4 million, or $0.31 per diluted share. The annualized
returns on average shareholders' equity and average assets for the
quarter ended September 30, 2020 were 9.82% and 1.09% compared
to 9.90% and 1.25% for the same quarter last year. As noted in the
non-GAAP reconciliation, when adjusting for COVID-related provision
expense and branch optimization related costs, non-GAAP net income
was approximately $40.1 million, or
$0.32 per diluted share, which would
represent an increase over the same quarter in the prior year of
$6.7 million, or 20.0%, and result in
a return on average shareholders' equity of 10.36% and a return on
average assets of 1.15%.
The Company also announced that its Board of Directors declared
a quarterly cash dividend of $0.19
per share payable on November 16, 2020 to shareholders of
record as of November 5, 2020. This is the
104th consecutive quarter in which the Company has paid
a cash dividend. Based on the market value of the Company's
common stock as of September 30, 2020, this represents an
annualized dividend yield of approximately 8.26%.
In making this announcement, Ronald J.
Seiffert, Chairman, President and CEO, noted, "We are very
pleased with the many positive results in the current quarter
beginning once again with strong fee income led by our mortgage
banking operations. We are also delighted to report that our
credit loss provision decreased significantly from the first and
second quarters, as expected, and essentially mirrored net
charge-offs in the third quarter. From a credit quality
perspective, delinquencies continue to be well maintained and loans
requesting payment deferrals have decreased significantly from last
quarter from $1.312 billion, or 12.1%
of the loan portfolio, at June 30,
2020 to just $212.7 million,
or 2.0%, at September 30, 2020.
Although classified assets jumped by $161.3
million, or 54.4%, during the quarter to $457.8 million, over 45% of total classified
assets are in the hotel/hospitality industry with virtually all the
increase attributable to downgrades in this sector as second
deferral requests were considered."
Mr. Seiffert continued, "Looking ahead, we are anxious to
execute upon the initiatives we have set in motion this year
including branch optimization to be completed in December, the
continued implementation of our digital strategy and capitalizing
on our very successful subordinated debt offering."
Net interest income increased by $12.6
million, or 13.9%, to $103.5
million for the quarter ended September 30, 2020, from
$90.9 million for the quarter ended
September 30, 2019, largely due to a $6.2 million, or 6.1%, increase in interest
income on loans receivable. This increase in interest income
was mainly due to an increase of $2.031
billion, or 23.2%, in the average balance of loans,
primarily as a result of the acquisition of MutualBank during the
second quarter of 2020. Also contributing to this increase in
net interest income was a decrease of $6.1
million, or 38.0%, in total interest expense due to a
decline in market interest rates when compared to the prior year,
resulting in a decrease in the cost of our interest-bearing
liabilities to 0.42% for the quarter ended September 30, 2020
from 0.89% for the quarter ended September 30, 2019. Despite
the overall increase in net interest income, net interest margin
decreased to 3.26% for the quarter ended September 30, 2020
from 3.79% for the same quarter last year as interest earning asset
yields decreased to 3.55% for the quarter ended September 30,
2020 from 4.41% for the quarter ended September 30, 2019.
Contributing to the decline in asset yields was the increase in
average cash balances of $762.8
million, earning just 0.11%, due to deposit growth
associated with Payroll Protection Program ("PPP") loan funds and
consumer stimulus checks. In addition, PPP loan balances of
approximately $500 million with
coupon rates of 1.00%, have negatively impacted overall interest
earning asset yields.
The provision for credit losses increased by $3.5 million to $6.8
million for the quarter ended September 30, 2020, from
$3.3 million for the quarter ended
September 30, 2019. During the current year, the Company
adopted ASU 2016-13, referred to as Current Expected Credit Losses
("CECL"), which requires that all financial assets measured at
amortized cost be presented at the net amount expected to be
collected inclusive of the entity's current estimate of all
lifetime expected credit losses. In addition, the estimated
economic impact of COVID-19 caused us to increase our provision
expense for the quarter by approximately $1.5 million. Finally, total classified
loans have increased to $457.8
million, or 4.25% of total loans, at September 30, 2020 from $205.9 million, or 2.33% of total loans, as of
September 30, 2019.
Noninterest income increased by $10.5
million, or 40.1%, to $36.7
million for the quarter ended September 30, 2020, from
$26.2 million for the quarter ended
September 30, 2019. This increase was primarily due to
the increase in mortgage banking income of $9.1 million to $11.1
million for the quarter ended September 30, 2020 from
$1.9 million for the quarter ended
September 30, 2019. This increase was due to continued efforts
to expand our secondary market sales capabilities over the last
year, as well as an interest rate environment conducive to
refinance activity and attractive secondary market pricing. In
addition, there was a $796,000, or
5.9%, increase in service charges and fees and a $767,000, or 16.6%, increase in trust and other
financial services income, both primarily due to additional fee
income as a result of the acquisition of MutualBank.
Noninterest expense increased by $16.3
million, or 23.1%, to $86.9
million for the quarter ended September 30, 2020, from
$70.6 million for the quarter ended
September 30, 2019. This increase resulted primarily
from an increase of $6.6 million, or
16.1%, in compensation and employee benefits due to both internal
growth in compensation and staff as well as the addition of
MutualBank employees. Also contributing to this increase was
an increase of $3.9 million, or
35.2%, in processing expenses as we continue to invest in
technology and infrastructure and as activity driven utilization
fees for online and mobile banking and loan origination platforms
has increased. Lastly, FDIC insurance premiums increased
$2.2 million due to assessment
credits received in the previous year.
The provision for income taxes decreased by $1.3 million, or 13.5%, to $8.5 million for the quarter ended
September 30, 2020, from $9.8
million for the quarter ended September 30, 2019.
This decrease was due primarily to a lower annual effective tax
rate as a result of the lower year-to-date income before taxes in
the current year as well as a change in state tax
apportionment.
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. As of September 30, 2020,
Northwest operated 205 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 Subsidiaries Consolidated
Statements of Financial Condition (Unaudited) (dollars in
thousands, except per share amounts)
|
|
September
30,
2020
|
|
December
31,
2019
|
|
September
30,
2019
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
656,749
|
|
|
60,846
|
|
|
107,602
|
|
Marketable securities
available-for-sale (amortized cost of $1,385,835, $815,495 and
$801,465, respectively)
|
1,409,150
|
|
|
819,901
|
|
|
807,823
|
|
Marketable securities
held-to-maturity (fair value of $16,168, $18,223 and $19,237,
respectively)
|
15,333
|
|
|
18,036
|
|
|
18,958
|
|
Total cash and cash
equivalents and marketable securities
|
2,081,232
|
|
|
898,783
|
|
|
934,383
|
|
Residential mortgage
loans held-for-sale
|
25,140
|
|
|
7,709
|
|
|
8,859
|
|
Residential mortgage
loans
|
3,118,229
|
|
|
2,860,418
|
|
|
2,887,274
|
|
Home equity
loans
|
1,484,365
|
|
|
1,342,918
|
|
|
1,328,173
|
|
Consumer
loans
|
1,487,083
|
|
|
1,125,132
|
|
|
1,094,293
|
|
Commercial real
estate loans
|
3,319,743
|
|
|
2,754,390
|
|
|
2,812,839
|
|
Commercial
loans
|
1,347,292
|
|
|
718,107
|
|
|
720,579
|
|
Total loans
receivable
|
10,781,852
|
|
|
8,808,674
|
|
|
8,852,017
|
|
Allowance for credit
losses
|
(140,209)
|
|
|
(57,941)
|
|
|
(52,859)
|
|
Loans receivable,
net
|
10,641,643
|
|
|
8,750,733
|
|
|
8,799,158
|
|
|
|
|
|
|
|
Federal Home Loan
Bank stock, at cost
|
23,171
|
|
|
14,740
|
|
|
21,401
|
|
Accrued interest
receivable
|
36,916
|
|
|
25,755
|
|
|
27,069
|
|
Real estate owned,
net
|
2,575
|
|
|
950
|
|
|
1,237
|
|
Premises and
equipment, net
|
166,919
|
|
|
147,409
|
|
|
148,796
|
|
Bank-owned life
insurance
|
252,621
|
|
|
189,091
|
|
|
187,971
|
|
Goodwill
|
386,044
|
|
|
346,103
|
|
|
344,720
|
|
Other intangible
assets, net
|
21,601
|
|
|
23,076
|
|
|
22,410
|
|
Other
assets
|
176,083
|
|
|
97,268
|
|
|
93,329
|
|
Total
assets
|
$
|
13,788,805
|
|
|
10,493,908
|
|
|
10,580,474
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$
|
2,641,234
|
|
|
1,609,653
|
|
|
1,905,650
|
|
Interest-bearing
demand deposits
|
2,663,878
|
|
|
1,944,108
|
|
|
1,678,644
|
|
Money market deposit
accounts
|
2,396,567
|
|
|
1,863,998
|
|
|
1,828,001
|
|
Savings
deposits
|
2,022,918
|
|
|
1,604,838
|
|
|
1,635,754
|
|
Time
deposits
|
1,732,022
|
|
|
1,569,410
|
|
|
1,633,451
|
|
Total
deposits
|
11,456,619
|
|
|
8,592,007
|
|
|
8,681,500
|
|
|
|
|
|
|
|
Borrowed
funds
|
398,216
|
|
|
246,336
|
|
|
255,257
|
|
Junior subordinated
debentures
|
128,729
|
|
|
121,800
|
|
|
121,787
|
|
Advances by borrowers
for taxes and insurance
|
29,755
|
|
|
44,556
|
|
|
24,331
|
|
Accrued interest
payable
|
1,002
|
|
|
1,142
|
|
|
1,314
|
|
Other
liabilities
|
227,253
|
|
|
134,782
|
|
|
144,515
|
|
Total
liabilities
|
12,241,574
|
|
|
9,140,623
|
|
|
9,228,704
|
|
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, 127,801,297, 106,859,088,
and 106,658,067 shares issued and outstanding,
respectively
|
1,278
|
|
|
1,069
|
|
|
1,067
|
|
Paid-in
capital
|
1,023,827
|
|
|
805,750
|
|
|
801,382
|
|
Retained
earnings
|
544,695
|
|
|
583,407
|
|
|
577,018
|
|
Accumulated other
comprehensive loss
|
(22,569)
|
|
|
(36,941)
|
|
|
(27,697)
|
|
Total shareholders'
equity
|
1,547,231
|
|
|
1,353,285
|
|
|
1,351,770
|
|
Total liabilities and
shareholders' equity
|
$
|
13,788,805
|
|
|
10,493,908
|
|
|
10,580,474
|
|
|
|
|
|
|
|
Equity to
assets
|
11.22
|
%
|
|
12.90
|
%
|
|
12.78
|
%
|
Tangible common equity
to assets
|
8.52
|
%
|
|
9.72
|
%
|
|
9.64
|
%
|
Book value per
share
|
$
|
12.11
|
|
|
12.66
|
|
|
12.67
|
|
Tangible book value
per share
|
$
|
8.92
|
|
|
9.21
|
|
|
9.23
|
|
Closing market price
per share
|
$
|
9.20
|
|
|
16.63
|
|
|
16.39
|
|
Full time equivalent
employees
|
2,523
|
|
|
2,209
|
|
|
2,218
|
|
Number of banking
offices
|
213
|
|
|
181
|
|
|
182
|
|
Northwest
Bancshares, Inc. and Subsidiaries Consolidated
Statements of Income (Unaudited) (dollars in thousands,
except per share amounts)
|
|
Quarter ended
|
|
September
30,
2020
|
|
June 30,
2020
|
|
March 31,
2020
|
|
December
31,
2019
|
|
September
30,
2019
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
$
|
107,241
|
|
|
103,012
|
|
|
94,973
|
|
|
97,866
|
|
|
101,091
|
|
Mortgage-backed
securities
|
4,652
|
|
|
4,038
|
|
|
4,175
|
|
|
4,237
|
|
|
4,188
|
|
Taxable investment
securities
|
427
|
|
|
439
|
|
|
648
|
|
|
683
|
|
|
884
|
|
Tax-free investment
securities
|
655
|
|
|
564
|
|
|
185
|
|
|
201
|
|
|
224
|
|
FHLB
dividends
|
218
|
|
|
309
|
|
|
262
|
|
|
262
|
|
|
307
|
|
Interest-earning
deposits
|
221
|
|
|
185
|
|
|
135
|
|
|
169
|
|
|
172
|
|
Total interest
income
|
113,414
|
|
|
108,547
|
|
|
100,378
|
|
|
103,418
|
|
|
106,866
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
8,443
|
|
|
9,336
|
|
|
11,403
|
|
|
12,893
|
|
|
13,694
|
|
Borrowed
funds
|
1,437
|
|
|
1,133
|
|
|
1,747
|
|
|
1,580
|
|
|
2,236
|
|
Total interest
expense
|
9,880
|
|
|
10,469
|
|
|
13,150
|
|
|
14,473
|
|
|
15,930
|
|
Net interest
income
|
103,534
|
|
|
98,078
|
|
|
87,228
|
|
|
88,945
|
|
|
90,936
|
|
Provision for credit losses
|
6,818
|
|
|
51,750
|
|
|
27,637
|
|
|
8,223
|
|
|
3,302
|
|
Net interest income
after provision for credit losses
|
96,716
|
|
|
46,328
|
|
|
59,591
|
|
|
80,722
|
|
|
87,634
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
Gain/(loss) on sale of
investments
|
(12)
|
|
|
(8)
|
|
|
181
|
|
|
27
|
|
|
—
|
|
Gain on sale of
loans
|
—
|
|
|
—
|
|
|
1,302
|
|
|
908
|
|
|
826
|
|
Service charges and
fees
|
14,354
|
|
|
13,069
|
|
|
15,116
|
|
|
14,125
|
|
|
13,558
|
|
Trust and other
financial services income
|
5,376
|
|
|
4,823
|
|
|
5,001
|
|
|
4,517
|
|
|
4,609
|
|
Insurance commission
income
|
2,331
|
|
|
2,395
|
|
|
2,372
|
|
|
1,858
|
|
|
1,887
|
|
Gain/(loss) on real
estate owned, net
|
(32)
|
|
|
(97)
|
|
|
(91)
|
|
|
86
|
|
|
(227)
|
|
Income from bank-owned
life insurance
|
1,576
|
|
|
1,248
|
|
|
1,036
|
|
|
1,121
|
|
|
1,095
|
|
Mortgage banking
income
|
11,055
|
|
|
12,022
|
|
|
1,194
|
|
|
1,494
|
|
|
1,921
|
|
Other operating
income
|
2,022
|
|
|
2,044
|
|
|
1,865
|
|
|
4,077
|
|
|
2,500
|
|
Total noninterest
income
|
36,670
|
|
|
35,496
|
|
|
27,976
|
|
|
28,213
|
|
|
26,169
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
47,371
|
|
|
40,049
|
|
|
42,746
|
|
|
42,074
|
|
|
40,816
|
|
Premises and occupancy
costs
|
8,342
|
|
|
7,195
|
|
|
7,471
|
|
|
7,051
|
|
|
7,061
|
|
Office
operations
|
4,626
|
|
|
3,711
|
|
|
3,382
|
|
|
4,097
|
|
|
3,197
|
|
Collections
expense
|
1,264
|
|
|
644
|
|
|
474
|
|
|
566
|
|
|
747
|
|
Processing
expenses
|
15,042
|
|
|
11,680
|
|
|
11,142
|
|
|
10,263
|
|
|
11,122
|
|
Marketing
expenses
|
2,147
|
|
|
2,047
|
|
|
1,507
|
|
|
1,010
|
|
|
1,373
|
|
Federal deposit
insurance premiums
|
1,498
|
|
|
1,618
|
|
|
—
|
|
|
—
|
|
|
(702)
|
|
Professional
services
|
3,246
|
|
|
2,825
|
|
|
2,812
|
|
|
3,533
|
|
|
3,032
|
|
Amortization of
intangible assets
|
1,781
|
|
|
1,760
|
|
|
1,651
|
|
|
1,634
|
|
|
1,702
|
|
Real estate owned
expense
|
111
|
|
|
89
|
|
|
95
|
|
|
72
|
|
|
119
|
|
Acquisition/branch
optimization expense
|
1,414
|
|
|
9,679
|
|
|
2,458
|
|
|
1,114
|
|
|
23
|
|
Other
expenses
|
27
|
|
|
7,866
|
|
|
4,873
|
|
|
5,157
|
|
|
2,106
|
|
Total noninterest
expense
|
86,869
|
|
|
89,163
|
|
|
78,611
|
|
|
76,571
|
|
|
70,596
|
|
Income/(loss) before
income taxes
|
46,517
|
|
|
(7,339)
|
|
|
8,956
|
|
|
32,364
|
|
|
43,207
|
|
Income tax
expense/(benefit)
|
8,467
|
|
|
(1,139)
|
|
|
1,017
|
|
|
6,773
|
|
|
9,793
|
|
Net
income/(loss)
|
$
|
38,050
|
|
|
(6,200)
|
|
|
7,939
|
|
|
25,591
|
|
|
33,414
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.30
|
|
|
(0.05)
|
|
|
0.08
|
|
|
0.24
|
|
|
0.32
|
|
Diluted earnings per
share
|
$
|
0.30
|
|
|
(0.05)
|
|
|
0.07
|
|
|
0.24
|
|
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
126,855,810
|
|
|
121,480,563
|
|
|
105,882,553
|
|
|
105,627,194
|
|
|
105,517,707
|
|
Weighted average
common shares outstanding - diluted
|
126,855,810
|
|
|
121,480,563
|
|
|
106,148,247
|
|
|
106,306,615
|
|
|
106,270,544
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average equity
|
9.82
|
%
|
|
(1.63)
|
%
|
|
2.37
|
%
|
|
7.52
|
%
|
|
9.90
|
%
|
Annualized return on
average assets
|
1.09
|
%
|
|
(0.18)
|
%
|
|
0.30
|
%
|
|
0.97
|
%
|
|
1.25
|
%
|
Annualized return on
tangible common equity **
|
13.28
|
%
|
|
(2.22)
|
%
|
|
3.28
|
%
|
|
10.32
|
%
|
|
13.46
|
%
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
*
|
59.68
|
%
|
|
58.19
|
%
|
|
64.67
|
%
|
|
63.01
|
%
|
|
58.81
|
%
|
Annualized
noninterest expense to average assets *
|
2.39
|
%
|
|
2.30
|
%
|
|
2.83
|
%
|
|
2.80
|
%
|
|
2.59
|
%
|
*
Excludes acquisition/branch optimization expenses and amortization
of intangible assets (non-GAAP).
|
**
Excludes goodwill and other intangible assets
(non-GAAP).
|
Northwest
Bancshares, Inc. and Subsidiaries Consolidated
Statements of Income (Unaudited) (dollars in thousands,
except per share amounts)
|
|
Nine months ended
September 30,
|
|
2020
|
|
2019
|
Interest
income:
|
|
|
|
Loans
receivable
|
$
|
305,226
|
|
|
296,943
|
|
Mortgage-backed
securities
|
12,865
|
|
|
12,433
|
|
Taxable investment
securities
|
1,514
|
|
|
2,718
|
|
Tax-free investment
securities
|
1,404
|
|
|
643
|
|
FHLB
dividends
|
789
|
|
|
794
|
|
Interest-earning
deposits
|
541
|
|
|
431
|
|
Total interest
income
|
322,339
|
|
|
313,962
|
|
Interest
expense:
|
|
|
|
Deposits
|
29,182
|
|
|
36,323
|
|
Borrowed
funds
|
4,317
|
|
|
6,118
|
|
Total interest
expense
|
33,499
|
|
|
42,441
|
|
Net interest
income
|
288,840
|
|
|
271,521
|
|
Provision for credit
losses
|
86,205
|
|
|
14,436
|
|
Net interest income
after provision for credit losses
|
202,635
|
|
|
257,085
|
|
Noninterest
income:
|
|
|
|
Gain on sale of
investments
|
161
|
|
|
23
|
|
Gain on sale of
loans
|
1,302
|
|
|
826
|
|
Service charges and
fees
|
42,539
|
|
|
38,940
|
|
Trust and other
financial services income
|
15,200
|
|
|
13,248
|
|
Insurance commission
income
|
7,098
|
|
|
6,210
|
|
Loss on real estate
owned, net
|
(220)
|
|
|
(139)
|
|
Income from bank-owned
life insurance
|
3,860
|
|
|
3,297
|
|
Mortgage banking
income
|
24,271
|
|
|
2,325
|
|
Other operating
income
|
5,931
|
|
|
6,464
|
|
Total noninterest
income
|
100,142
|
|
|
71,194
|
|
Noninterest
expense:
|
|
|
|
Compensation and
employee benefits
|
130,166
|
|
|
121,012
|
|
Premises and occupancy
costs
|
23,008
|
|
|
21,666
|
|
Office
operations
|
11,719
|
|
|
10,036
|
|
Collections
expense
|
2,382
|
|
|
1,994
|
|
Processing
expenses
|
37,864
|
|
|
32,190
|
|
Marketing
expenses
|
5,701
|
|
|
5,988
|
|
Federal deposit
insurance premiums
|
3,116
|
|
|
685
|
|
Professional
services
|
8,883
|
|
|
8,754
|
|
Amortization of
intangible assets
|
5,192
|
|
|
4,909
|
|
Real estate owned
expense
|
295
|
|
|
406
|
|
Acquisition/branch
optimization expense
|
13,551
|
|
|
3,054
|
|
Other
expenses
|
12,766
|
|
|
8,838
|
|
Total noninterest
expense
|
254,643
|
|
|
219,532
|
|
Income before income
taxes
|
48,134
|
|
|
108,747
|
|
Income tax
expense
|
8,345
|
|
|
23,906
|
|
Net income
|
$
|
39,789
|
|
|
84,841
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.34
|
|
|
0.81
|
|
Diluted earnings per
share
|
$
|
0.34
|
|
|
0.80
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
118,088,122
|
|
|
104,626,560
|
|
Weighted average
common shares outstanding - diluted
|
118,088,122
|
|
|
105,681,615
|
|
|
|
|
|
Annualized return on
average equity
|
3.33
|
%
|
|
8.65
|
%
|
Annualized return on
average assets
|
0.42
|
%
|
|
1.10
|
%
|
Annualized return on
tangible common equity **
|
4.66
|
%
|
|
11.52
|
%
|
|
|
|
|
Efficiency ratio
*
|
60.65
|
%
|
|
61.73
|
%
|
Annualized
noninterest expense to average assets *
|
2.50
|
%
|
|
2.75
|
%
|
*
Excludes acquisition/branch optimization expenses and amortization
of intangible assets (non-GAAP).
|
**
Excludes goodwill and other intangible assets
(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
September 30,
|
|
Nine months ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Operating results
(non-GAAP):
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
103,534
|
|
|
90,936
|
|
|
288,840
|
|
|
271,521
|
|
Provision for credit
losses
|
5,349
|
|
|
3,302
|
|
|
21,551
|
|
|
14,436
|
|
Noninterest
income
|
36,670
|
|
|
26,169
|
|
|
100,142
|
|
|
71,194
|
|
Noninterest
expense
|
85,455
|
|
|
70,573
|
|
|
243,092
|
|
|
216,478
|
|
Income
taxes
|
9,274
|
|
|
9,799
|
|
|
29,682
|
|
|
24,761
|
|
Net operating income
(non-GAAP)
|
$
|
40,126
|
|
|
33,431
|
|
|
94,657
|
|
|
87,040
|
|
Diluted earnings per
share (non-GAAP)
|
$
|
0.32
|
|
|
0.31
|
|
|
0.80
|
|
|
0.82
|
|
|
|
|
|
|
|
|
|
Average
equity
|
$
|
1,540,934
|
|
|
1,339,339
|
|
|
1,596,252
|
|
|
1,312,002
|
|
Average
assets
|
13,903,655
|
|
|
10,568,279
|
|
|
12,590,018
|
|
|
10,289,453
|
|
Annualized return on
average equity (non-GAAP)
|
10.36
|
%
|
|
9.90
|
%
|
|
7.92
|
%
|
|
8.87
|
%
|
Annualized return on
average assets (non-GAAP)
|
1.15
|
%
|
|
1.26
|
%
|
|
1.00
|
%
|
|
1.13
|
%
|
|
|
|
|
|
|
|
|
Reconciliation of net
operating income to net income:
|
|
|
|
|
|
|
|
Net operating income
(non-GAAP)
|
$
|
40,126
|
|
|
33,431
|
|
|
94,657
|
|
|
87,040
|
|
Non-GAAP adjustments,
net of tax:
|
|
|
|
|
|
|
|
COVID-related
provision **
|
(1,058)
|
|
|
—
|
|
|
(33,462)
|
|
|
—
|
|
CECL provision impact
due to acquisition of MutualBank
|
—
|
|
|
—
|
|
|
(13,089)
|
|
|
—
|
|
PPP deferred
origination costs
|
—
|
|
|
—
|
|
|
3,034
|
|
|
—
|
|
COVID-related off
balance sheet provision **
|
—
|
|
|
—
|
|
|
(1,594)
|
|
|
—
|
|
Acquisition/branch
optimization expense
|
(1,018)
|
|
|
(17)
|
|
|
(9,757)
|
|
|
(2,199)
|
|
Net income
(GAAP)
|
$
|
38,050
|
|
|
33,414
|
|
|
39,789
|
|
|
84,841
|
|
Diluted earnings per
share (GAAP)
|
$
|
0.30
|
|
|
0.31
|
|
|
0.34
|
|
|
0.80
|
|
|
|
|
|
|
|
|
|
Annualized return on
average equity (GAAP)
|
9.82
|
%
|
|
9.90
|
%
|
|
3.33
|
%
|
|
8.65
|
%
|
Annualized return on
average assets (GAAP)
|
1.09
|
%
|
|
1.25
|
%
|
|
0.42
|
%
|
|
1.10
|
%
|
*
|
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 estimated COVID-related provision, CECL provision
related to the acquisition of MutualBank, PPP deferred origination
costs, estimated COVID-related off balance sheet provision and
acquisition/branch optimization 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.
|
**
|
To arrive at the
non-COVID related provision estimates, the Company applied Moody's
forecast scenarios prior to the onset of COVID-19 to the Company's
loan portfolio at September 30, 2020.
|
Northwest
Bancshares, Inc. and Subsidiaries Regulatory Capital
Requirements (Unaudited) (dollars in
thousands)
|
|
At September 30,
2020
|
|
Actual
|
|
Minimum capital
requirements (1)
|
|
Well capitalized
requirements
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
Total capital (to
risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc.
|
$
|
1,655,949
|
|
|
16.607
|
%
|
|
$
|
1,046,981
|
|
|
10.500
|
%
|
|
$
|
997,125
|
|
|
10.000
|
%
|
Northwest
Bank
|
1,445,508
|
|
|
14.512
|
%
|
|
1,045,896
|
|
|
10.500
|
%
|
|
996,092
|
|
|
10.000
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital (to
risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc.
|
1,521,913
|
|
|
15.263
|
%
|
|
847,556
|
|
|
8.500
|
%
|
|
797,700
|
|
|
8.000
|
%
|
Northwest
Bank
|
1,311,472
|
|
|
13.166
|
%
|
|
846,678
|
|
|
8.500
|
%
|
|
796,873
|
|
|
8.000
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1
capital (to risk weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc.
|
1,273,896
|
|
|
12.776
|
%
|
|
697,988
|
|
|
7.000
|
%
|
|
648,131
|
|
|
6.500
|
%
|
Northwest
Bank
|
1,311,472
|
|
|
13.166
|
%
|
|
697,264
|
|
|
7.000
|
%
|
|
647,460
|
|
|
6.500
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital
(leverage) (to average assets)
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc.
|
1,521,913
|
|
|
10.977
|
%
|
|
554,608
|
|
|
4.000
|
%
|
|
693,260
|
|
|
5.000
|
%
|
Northwest
Bank
|
1,311,472
|
|
|
9.522
|
%
|
|
550,907
|
|
|
4.000
|
%
|
|
688,634
|
|
|
5.000
|
%
|
(1)
|
Amounts and ratios
include the capital conservation buffer of 2.5%, which does not
apply to Tier 1 capital to average assets (leverage ratio). For
further information related to the capital conservation buffer, see
"Item 1. Business - Supervision and Regulation" of our 2019 Annual
Report on Form 10-K.
|
Northwest
Bancshares, Inc. and Subsidiaries Marketable
Securities (Unaudited) (dollars in
thousands)
|
|
|
September 30,
2020
|
Marketable securities
available-for-sale
|
|
Amortized
cost
|
|
Gross
unrealized
holding gains
|
|
Gross
unrealized
holding losses
|
|
Fair
value
|
Debt
issued by the U.S. government and agencies:
|
|
|
|
|
|
|
|
|
Due after ten
years
|
|
$
|
34,000
|
|
|
176
|
|
|
—
|
|
|
34,176
|
|
|
|
|
|
|
|
|
|
|
Debt
issued by government sponsored enterprises:
|
|
|
|
|
|
|
|
|
Due in
less than one year
|
|
35,731
|
|
|
284
|
|
|
—
|
|
|
36,015
|
|
Due in
one year through five years
|
|
253
|
|
|
4
|
|
|
—
|
|
|
257
|
|
Due in
five years through ten years
|
|
69,135
|
|
|
170
|
|
|
(178)
|
|
|
69,127
|
|
|
|
|
|
|
|
|
|
|
Municipal securities:
|
|
|
|
|
|
|
|
|
Due in
less than one year
|
|
4,241
|
|
|
18
|
|
|
—
|
|
|
4,259
|
|
Due in
one year through five years
|
|
3,343
|
|
|
73
|
|
|
(2)
|
|
|
3,414
|
|
Due in
five years through ten years
|
|
11,077
|
|
|
312
|
|
|
—
|
|
|
11,389
|
|
Due after
ten years
|
|
92,530
|
|
|
2,930
|
|
|
—
|
|
|
95,460
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
Fixed
rate pass-through
|
|
356,898
|
|
|
6,467
|
|
|
(102)
|
|
|
363,263
|
|
Variable
rate pass-through
|
|
15,798
|
|
|
538
|
|
|
(18)
|
|
|
16,318
|
|
Fixed
rate agency CMOs
|
|
710,620
|
|
|
13,035
|
|
|
(722)
|
|
|
722,933
|
|
Variable
rate agency CMOs
|
|
52,209
|
|
|
369
|
|
|
(39)
|
|
|
52,539
|
|
Total
residential mortgage-backed securities
|
|
1,135,525
|
|
|
20,409
|
|
|
(881)
|
|
|
1,155,053
|
|
Total
marketable securities available-for-sale
|
|
$
|
1,385,835
|
|
|
24,376
|
|
|
(1,061)
|
|
|
1,409,150
|
|
|
|
|
|
|
|
|
|
|
Marketable securities
held-to-maturity
|
|
|
|
|
|
|
|
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
Fixed
rate pass-through
|
|
$
|
1,823
|
|
|
128
|
|
|
—
|
|
|
1,951
|
|
Variable
rate pass-through
|
|
970
|
|
|
33
|
|
|
—
|
|
|
1,003
|
|
Fixed
rate agency CMOs
|
|
11,936
|
|
|
659
|
|
|
—
|
|
|
12,595
|
|
Variable
rate agency CMOs
|
|
604
|
|
|
15
|
|
|
—
|
|
|
619
|
|
Total
residential mortgage-backed securities
|
|
15,333
|
|
|
835
|
|
|
—
|
|
|
16,168
|
|
Total
marketable securities held-to-maturity
|
|
$
|
15,333
|
|
|
835
|
|
|
—
|
|
|
16,168
|
|
Northwest
Bancshares, Inc. and Subsidiaries Borrowed Funds
(Unaudited) (dollars in thousands)
|
|
September 30,
2020
|
|
Amount
|
|
Average
rate
|
Term notes payable to
the Federal Home Loan Bank (FHLB):
|
|
|
|
Payable
to FHLB of Pittsburgh
|
$
|
30,000
|
|
|
0.40
|
%
|
Payable
to the FHLB of Indianapolis acquired from MutualBank
|
118,107
|
|
|
1.70
|
%
|
Total term notes
payable to the FHLB
|
148,107
|
|
|
|
Collateralized
borrowings, due within one year
|
126,832
|
|
|
0.19
|
%
|
Subordinated
debentures, net of issuance costs
|
$
|
123,277
|
|
|
4.00
|
%
|
Total borrowed funds
*
|
$
|
398,216
|
|
|
|
*
|
As of
September 30, 2020, the Company had $3.8 billion of additional
borrowing capacity available with the Federal Home Loan Bank of
Pittsburgh, including a $250.0 million overnight line of credit,
which had no balance, as well as $103.0 million of borrowing
capacity available with the Federal Reserve Bank and $110.0 million
with three correspondent banks.
|
Northwest
Bancshares, Inc. and Subsidiaries Asset Quality
(Unaudited) (dollars in thousands)
|
|
September
30,
2020
|
|
June 30,
2020
|
|
March 31,
2020
|
|
December
31,
2019
|
|
September
30,
2019
|
Nonaccrual loans
current:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
1,128
|
|
|
413
|
|
|
285
|
|
|
72
|
|
|
676
|
|
Home equity
loans
|
366
|
|
|
481
|
|
|
592
|
|
|
197
|
|
|
607
|
|
Consumer
loans
|
234
|
|
|
214
|
|
|
77
|
|
|
78
|
|
|
68
|
|
Commercial real estate
loans
|
22,610
|
|
|
30,677
|
|
|
14,337
|
|
|
9,241
|
|
|
7,674
|
|
Commercial
loans
|
6,488
|
|
|
6,551
|
|
|
3,514
|
|
|
3,424
|
|
|
3,777
|
|
Total nonaccrual
loans current
|
$
|
30,826
|
|
|
38,336
|
|
|
18,805
|
|
|
13,012
|
|
|
12,802
|
|
Nonaccrual loans
delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
60
|
|
|
61
|
|
|
691
|
|
|
674
|
|
|
40
|
|
Home equity
loans
|
445
|
|
|
247
|
|
|
159
|
|
|
224
|
|
|
102
|
|
Consumer
loans
|
230
|
|
|
335
|
|
|
143
|
|
|
121
|
|
|
246
|
|
Commercial real estate
loans
|
692
|
|
|
2,372
|
|
|
496
|
|
|
196
|
|
|
925
|
|
Commercial
loans
|
57
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
44
|
|
Total nonaccrual
loans delinquent 30 days to 59 days
|
$
|
1,484
|
|
|
3,015
|
|
|
1,489
|
|
|
1,270
|
|
|
1,357
|
|
Nonaccrual loans
delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
576
|
|
|
1,013
|
|
|
218
|
|
|
1,048
|
|
|
979
|
|
Home equity
loans
|
618
|
|
|
960
|
|
|
539
|
|
|
689
|
|
|
436
|
|
Consumer
loans
|
781
|
|
|
666
|
|
|
488
|
|
|
417
|
|
|
426
|
|
Commercial real estate
loans
|
2,745
|
|
|
163
|
|
|
2,096
|
|
|
413
|
|
|
536
|
|
Commercial
loans
|
15
|
|
|
768
|
|
|
37
|
|
|
341
|
|
|
—
|
|
Total nonaccrual
loans delinquent 60 days to 89 days
|
$
|
4,735
|
|
|
3,570
|
|
|
3,378
|
|
|
2,908
|
|
|
2,377
|
|
Nonaccrual loans
delinquent 90 days or more:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
14,750
|
|
|
15,369
|
|
|
10,457
|
|
|
12,682
|
|
|
11,722
|
|
Home equity
loans
|
7,845
|
|
|
7,060
|
|
|
5,816
|
|
|
5,635
|
|
|
5,966
|
|
Consumer
loans
|
5,352
|
|
|
6,896
|
|
|
3,459
|
|
|
3,610
|
|
|
3,400
|
|
Commercial real estate
loans
|
35,496
|
|
|
29,729
|
|
|
25,342
|
|
|
25,014
|
|
|
22,292
|
|
Commercial
loans
|
6,310
|
|
|
11,535
|
|
|
16,685
|
|
|
4,739
|
|
|
5,741
|
|
Total nonaccrual
loans delinquent 90 days or more
|
$
|
69,753
|
|
|
70,589
|
|
|
61,759
|
|
|
51,680
|
|
|
49,121
|
|
Total nonaccrual
loans
|
$
|
106,798
|
|
|
115,510
|
|
|
85,431
|
|
|
68,870
|
|
|
65,657
|
|
Total nonaccrual
loans
|
$
|
106,798
|
|
|
115,510
|
|
|
85,431
|
|
|
68,870
|
|
|
65,657
|
|
Loans 90 days past
due and still accruing
|
495
|
|
|
77
|
|
|
31
|
|
|
32
|
|
|
85
|
|
Nonperforming
loans
|
107,293
|
|
|
115,587
|
|
|
85,462
|
|
|
68,902
|
|
|
65,742
|
|
Real estate owned,
net
|
2,575
|
|
|
1,897
|
|
|
1,075
|
|
|
950
|
|
|
1,237
|
|
Nonperforming
assets
|
$
|
109,868
|
|
|
117,484
|
|
|
86,537
|
|
|
69,852
|
|
|
66,979
|
|
Nonaccrual troubled
debt restructuring *
|
$
|
17,120
|
|
|
17,562
|
|
|
17,375
|
|
|
9,043
|
|
|
9,138
|
|
Accruing troubled
debt restructuring
|
17,684
|
|
|
17,888
|
|
|
15,977
|
|
|
22,956
|
|
|
21,162
|
|
Total troubled debt
restructuring
|
$
|
34,804
|
|
|
35,450
|
|
|
33,352
|
|
|
31,999
|
|
|
30,300
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
to total loans
|
1.00
|
%
|
|
1.06
|
%
|
|
0.97
|
%
|
|
0.78
|
%
|
|
0.74
|
%
|
Nonperforming assets
to total assets
|
0.80
|
%
|
|
0.85
|
%
|
|
0.81
|
%
|
|
0.67
|
%
|
|
0.63
|
%
|
Allowance for credit
losses to total loans
|
1.30
|
%
|
|
1.29
|
%
|
|
1.05
|
%
|
|
0.66
|
%
|
|
0.60
|
%
|
Allowance for total
loans excluding PPP loan balances
|
1.36
|
%
|
|
1.36
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Allowance for credit
losses to nonperforming loans
|
130.68
|
%
|
|
121.63
|
%
|
|
108.70
|
%
|
|
84.09
|
%
|
|
80.40
|
%
|
*
|
Amounts included in
nonperforming loans above.
|
Northwest
Bancshares, Inc. and Subsidiaries
Loans by Credit Quality Indicators
(Unaudited) (dollars in thousands)
|
At September 30,
2020
|
|
Pass
|
|
Special
mention *
|
|
Substandard
**
|
|
Doubtful
***
|
|
Loss
|
|
Loans
receivable
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
|
3,117,442
|
|
|
—
|
|
25,927
|
|
—
|
|
—
|
|
3,143,369
|
|
Home equity
loans
|
|
1,471,919
|
|
|
—
|
|
12,446
|
|
—
|
|
—
|
|
1,484,365
|
|
Consumer
loans
|
|
1,478,109
|
|
|
—
|
|
8,974
|
|
—
|
|
—
|
|
1,487,083
|
|
Total Personal
Banking
|
|
6,067,470
|
|
|
—
|
|
47,347
|
|
—
|
|
—
|
|
6,114,817
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,850,611
|
|
|
110,073
|
|
359,059
|
|
—
|
|
—
|
|
3,319,743
|
|
Commercial
loans
|
|
1,255,255
|
|
|
40,631
|
|
51,406
|
|
—
|
|
—
|
|
1,347,292
|
|
Total Commercial
Banking
|
|
4,105,866
|
|
|
150,704
|
|
410,465
|
|
—
|
|
—
|
|
4,667,035
|
|
Total
loans
|
|
$
|
10,173,336
|
|
|
150,704
|
|
457,812
|
|
—
|
|
—
|
|
10,781,852
|
|
At June 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
|
3,196,304
|
|
|
—
|
|
26,451
|
|
—
|
|
—
|
|
3,222,755
|
|
Home equity
loans
|
|
1,438,339
|
|
|
—
|
|
12,031
|
|
—
|
|
—
|
|
1,450,370
|
|
Consumer
loans
|
|
1,508,129
|
|
|
—
|
|
9,990
|
|
—
|
|
—
|
|
1,518,119
|
|
Total Personal
Banking
|
|
6,142,772
|
|
|
—
|
|
48,472
|
|
—
|
|
—
|
|
6,191,244
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
3,034,984
|
|
|
72,755
|
|
199,993
|
|
1,092
|
|
—
|
|
3,308,824
|
|
Commercial
loans
|
|
1,270,279
|
|
|
41,458
|
|
42,692
|
|
4,290
|
|
—
|
|
1,358,719
|
|
Total Commercial
Banking
|
|
4,305,263
|
|
|
114,213
|
|
242,685
|
|
5,382
|
|
—
|
|
4,667,543
|
|
Total
loans
|
|
$
|
10,448,035
|
|
|
114,213
|
|
291,157
|
|
5,382
|
|
—
|
|
10,858,787
|
|
At March 31,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
|
2,830,596
|
|
|
—
|
|
7,690
|
|
—
|
|
—
|
|
2,838,286
|
|
Home equity
loans
|
|
1,345,052
|
|
|
—
|
|
8,211
|
|
—
|
|
—
|
|
1,353,263
|
|
Consumer
loans
|
|
1,174,067
|
|
|
—
|
|
3,988
|
|
—
|
|
—
|
|
1,178,055
|
|
Total Personal
Banking
|
|
5,349,715
|
|
|
—
|
|
19,889
|
|
—
|
|
—
|
|
5,369,604
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,537,736
|
|
|
73,967
|
|
143,765
|
|
—
|
|
—
|
|
2,755,468
|
|
Commercial
loans
|
|
618,267
|
|
|
43,071
|
|
50,464
|
|
—
|
|
—
|
|
711,802
|
|
Total Commercial
Banking
|
|
3,156,003
|
|
|
117,038
|
|
194,229
|
|
—
|
|
—
|
|
3,467,270
|
|
Total
loans
|
|
$
|
8,505,718
|
|
|
117,038
|
|
214,118
|
|
—
|
|
—
|
|
8,836,874
|
|
At December 31,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
|
2,858,582
|
|
|
—
|
|
9,545
|
|
—
|
|
—
|
|
2,868,127
|
|
Home equity
loans
|
|
1,336,111
|
|
|
—
|
|
6,807
|
|
—
|
|
—
|
|
1,342,918
|
|
Consumer
loans
|
|
1,120,732
|
|
|
—
|
|
4,400
|
|
—
|
|
—
|
|
1,125,132
|
|
Total Personal
Banking
|
|
5,315,425
|
|
|
—
|
|
20,752
|
|
—
|
|
—
|
|
5,336,177
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,538,816
|
|
|
80,570
|
|
135,004
|
|
—
|
|
—
|
|
2,754,390
|
|
Commercial
loans
|
|
616,983
|
|
|
42,380
|
|
58,744
|
|
—
|
|
—
|
|
718,107
|
|
Total Commercial
Banking
|
|
3,155,799
|
|
|
122,950
|
|
193,748
|
|
—
|
|
—
|
|
3,472,497
|
|
Total
loans
|
|
$
|
8,471,224
|
|
|
122,950
|
|
214,500
|
|
—
|
|
—
|
|
8,808,674
|
|
At September 30,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
|
2,887,077
|
|
|
—
|
|
9,056
|
|
—
|
|
—
|
|
2,896,133
|
|
Home equity
loans
|
|
1,320,930
|
|
|
—
|
|
7,243
|
|
—
|
|
—
|
|
1,328,173
|
|
Consumer
loans
|
|
1,090,030
|
|
|
—
|
|
4,263
|
|
—
|
|
—
|
|
1,094,293
|
|
Total Personal
Banking
|
|
5,298,037
|
|
|
—
|
|
20,562
|
|
—
|
|
—
|
|
5,318,599
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,601,025
|
|
|
69,380
|
|
142,253
|
|
181
|
|
—
|
|
2,812,839
|
|
Commercial
loans
|
|
639,998
|
|
|
37,666
|
|
42,800
|
|
115
|
|
—
|
|
720,579
|
|
Total Commercial
Banking
|
|
3,241,023
|
|
|
107,046
|
|
185,053
|
|
296
|
|
—
|
|
3,533,418
|
|
Total
loans
|
|
$
|
8,539,060
|
|
|
107,046
|
|
205,615
|
|
296
|
|
—
|
|
8,852,017
|
|
*
|
Includes $34.7
million, $37.4 million, $13.1 million, $10.3 million, and $8.7
million of acquired loans at September 30, 2020, June 30,
2020, March 31, 2020, December 31, 2019, and September 30,
2019, respectively.
|
**
|
Includes $129.2
million, $108.2 million, $56.8 million, $53.1 million, and $46.6
million of acquired loans at September 30, 2020, June 30,
2020, March 31, 2020, December 31, 2019, and September 30,
2019, respectively.
|
***
|
Includes $1.1 million
of acquired loans at June 30, 2020.
|
Northwest
Bancshares, Inc. and Subsidiaries Loan Delinquency
(Unaudited) (dollars in thousands)
|
|
September
30,
2020
|
|
*
|
|
June 30,
2020
|
|
*
|
|
March 31,
2020
|
|
*
|
|
December
31,
2019
|
|
*
|
|
September
30,
2019
|
|
*
|
(Number of loans and
dollar amount of loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 30
days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
17
|
|
|
$
|
736
|
|
|
—
|
%
|
|
15
|
|
|
$
|
629
|
|
|
—
|
%
|
|
358
|
|
|
$
|
32,755
|
|
|
1.2
|
%
|
|
292
|
|
|
$
|
23,296
|
|
|
0.8
|
%
|
|
21
|
|
|
$
|
1,236
|
|
|
—
|
%
|
Home equity
loans
|
129
|
|
|
4,984
|
|
|
0.3
|
%
|
|
118
|
|
|
4,569
|
|
|
0.3
|
%
|
|
190
|
|
|
7,061
|
|
|
0.5
|
%
|
|
173
|
|
|
6,469
|
|
|
0.5
|
%
|
|
149
|
|
|
4,774
|
|
|
0.4
|
%
|
Consumer
loans
|
1,078
|
|
|
8,586
|
|
|
0.6
|
%
|
|
629
|
|
|
7,199
|
|
|
0.5
|
%
|
|
953
|
|
|
8,774
|
|
|
0.7
|
%
|
|
960
|
|
|
9,208
|
|
|
0.8
|
%
|
|
864
|
|
|
7,597
|
|
|
0.7
|
%
|
Commercial real estate
loans
|
28
|
|
|
5,090
|
|
|
0.2
|
%
|
|
46
|
|
|
14,177
|
|
|
0.4
|
%
|
|
58
|
|
|
12,895
|
|
|
0.5
|
%
|
|
43
|
|
|
7,921
|
|
|
0.3
|
%
|
|
27
|
|
|
5,308
|
|
|
0.2
|
%
|
Commercial
loans
|
19
|
|
|
1,797
|
|
|
0.1
|
%
|
|
12
|
|
|
1,242
|
|
|
0.1
|
%
|
|
35
|
|
|
7,545
|
|
|
1.1
|
%
|
|
32
|
|
|
1,187
|
|
|
0.2
|
%
|
|
20
|
|
|
362
|
|
|
0.1
|
%
|
Total loans
delinquent 30 days to 59 days
|
1,271
|
|
|
$
|
21,193
|
|
|
0.2
|
%
|
|
820
|
|
|
$
|
27,816
|
|
|
0.3
|
%
|
|
1,594
|
|
|
$
|
69,030
|
|
|
0.8
|
%
|
|
1,500
|
|
|
$
|
48,081
|
|
|
0.5
|
%
|
|
1,081
|
|
|
$
|
19,277
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60
days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
65
|
|
|
$
|
4,788
|
|
|
0.2
|
%
|
|
64
|
|
|
$
|
5,364
|
|
|
0.2
|
%
|
|
11
|
|
|
$
|
511
|
|
|
—
|
%
|
|
67
|
|
|
$
|
5,693
|
|
|
0.2
|
%
|
|
95
|
|
|
$
|
5,320
|
|
|
0.2
|
%
|
Home equity
loans
|
56
|
|
|
1,860
|
|
|
0.1
|
%
|
|
59
|
|
|
2,326
|
|
|
0.2
|
%
|
|
65
|
|
|
2,652
|
|
|
0.2
|
%
|
|
66
|
|
|
2,405
|
|
|
0.2
|
%
|
|
66
|
|
|
2,103
|
|
|
0.2
|
%
|
Consumer
loans
|
323
|
|
|
3,049
|
|
|
0.2
|
%
|
|
258
|
|
|
2,916
|
|
|
0.2
|
%
|
|
265
|
|
|
2,610
|
|
|
0.2
|
%
|
|
395
|
|
|
3,302
|
|
|
0.3
|
%
|
|
288
|
|
|
2,632
|
|
|
0.2
|
%
|
Commercial real estate
loans
|
14
|
|
|
4,212
|
|
|
0.1
|
%
|
|
18
|
|
|
3,913
|
|
|
0.1
|
%
|
|
12
|
|
|
2,981
|
|
|
0.1
|
%
|
|
19
|
|
|
1,690
|
|
|
0.1
|
%
|
|
15
|
|
|
1,893
|
|
|
0.1
|
%
|
Commercial
loans
|
7
|
|
|
357
|
|
|
—
|
%
|
|
15
|
|
|
1,151
|
|
|
0.1
|
%
|
|
10
|
|
|
309
|
|
|
—
|
%
|
|
17
|
|
|
6,403
|
|
|
0.9
|
%
|
|
10
|
|
|
589
|
|
|
0.1
|
%
|
Total loans
delinquent 60 days to 89 days
|
465
|
|
|
$
|
14,266
|
|
|
0.1
|
%
|
|
414
|
|
|
$
|
15,670
|
|
|
0.1
|
%
|
|
363
|
|
|
$
|
9,063
|
|
|
0.1
|
%
|
|
564
|
|
|
$
|
19,493
|
|
|
0.2
|
%
|
|
474
|
|
|
$
|
12,537
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90
days or more: **
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
168
|
|
|
$
|
14,750
|
|
|
0.5
|
%
|
|
185
|
|
|
$
|
15,369
|
|
|
0.5
|
%
|
|
129
|
|
|
$
|
10,457
|
|
|
0.4
|
%
|
|
141
|
|
|
$
|
12,775
|
|
|
0.4
|
%
|
|
138
|
|
|
$
|
11,816
|
|
|
0.4
|
%
|
Home equity
loans
|
193
|
|
|
7,845
|
|
|
0.5
|
%
|
|
182
|
|
|
7,060
|
|
|
0.5
|
%
|
|
152
|
|
|
5,816
|
|
|
0.4
|
%
|
|
159
|
|
|
5,688
|
|
|
0.4
|
%
|
|
157
|
|
|
5,966
|
|
|
0.4
|
%
|
Consumer
loans
|
696
|
|
|
5,847
|
|
|
0.4
|
%
|
|
709
|
|
|
6,896
|
|
|
0.5
|
%
|
|
445
|
|
|
3,459
|
|
|
0.3
|
%
|
|
590
|
|
|
3,611
|
|
|
0.3
|
%
|
|
398
|
|
|
3,401
|
|
|
0.3
|
%
|
Commercial real estate
loans
|
136
|
|
|
35,496
|
|
|
1.1
|
%
|
|
149
|
|
|
29,729
|
|
|
0.9
|
%
|
|
139
|
|
|
25,342
|
|
|
0.9
|
%
|
|
129
|
|
|
25,014
|
|
|
0.9
|
%
|
|
118
|
|
|
22,292
|
|
|
0.8
|
%
|
Commercial
loans
|
34
|
|
|
6,310
|
|
|
0.5
|
%
|
|
47
|
|
|
11,535
|
|
|
0.8
|
%
|
|
51
|
|
|
16,685
|
|
|
2.3
|
%
|
|
37
|
|
|
4,739
|
|
|
0.7
|
%
|
|
40
|
|
|
5,741
|
|
|
0.8
|
%
|
Total loans
delinquent 90 days or more
|
1,227
|
|
|
$
|
70,248
|
|
|
0.7
|
%
|
|
1,272
|
|
|
$
|
70,589
|
|
|
0.7
|
%
|
|
916
|
|
|
$
|
61,759
|
|
|
0.7
|
%
|
|
1,056
|
|
|
$
|
51,827
|
|
|
0.6
|
%
|
|
851
|
|
|
$
|
49,216
|
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
delinquent
|
2,963
|
|
|
$
|
105,707
|
|
|
1.0
|
%
|
|
2,506
|
|
|
$
|
114,075
|
|
|
1.1
|
%
|
|
2,873
|
|
|
$
|
139,852
|
|
|
1.6
|
%
|
|
3,120
|
|
|
$
|
119,401
|
|
|
1.4
|
%
|
|
2,406
|
|
|
$
|
81,030
|
|
|
0.9
|
%
|
*
|
Represents
delinquency, in dollars, divided by the respective total amount of
that type of loan outstanding.
|
**
|
Includes purchased
credit deteriorated loans of $20.3 million, $18.0 million, and
$298,000 at September 30, 2020, June 30, 2020, and March 31, 2020,
respectively, and purchased credit impaired loans of $147,000 and
$95,000 at December 31, 2019, and September 30, 2019,
respectively.
|
Northwest
Bancshares, Inc. and Subsidiaries Analysis of Loan
Portfolio by Loan Sector (Unaudited) (dollars in
thousands)
|
Loans
outstanding
The following table
provides delinquency information for various loan sectors in our
portfolio that are potentially vulnerable to the COVID-19 pandemic
impacts at September 30, 2020:
|
At September 30,
2020
|
30-59 days
delinquent
|
|
*
|
|
60-89 days
delinquent
|
|
*
|
|
90 days
or greater
delinquent
|
|
*
|
|
Total
delinquent
|
|
*
|
|
Current
|
|
*
|
|
Total
loans
receivable
|
|
*
|
Restaurants/bars
|
$
|
27
|
|
|
—
|
%
|
|
$
|
623
|
|
|
—
|
%
|
|
$
|
1,012
|
|
|
—
|
%
|
|
$
|
1,662
|
|
|
—
|
%
|
|
$
|
97,009
|
|
|
0.9
|
%
|
|
$
|
98,671
|
|
|
0.9
|
%
|
Hotels/hospitality
|
3
|
|
|
—
|
%
|
|
1,083
|
|
|
—
|
%
|
|
6,751
|
|
|
0.1
|
%
|
|
7,837
|
|
|
0.1
|
%
|
|
174,687
|
|
|
1.6
|
%
|
|
182,524
|
|
|
1.7
|
%
|
Gyms and
fitness
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
5
|
|
|
—
|
%
|
|
5
|
|
|
—
|
%
|
|
5,302
|
|
|
—
|
%
|
|
5,307
|
|
|
—
|
%
|
Transportation
|
44
|
|
|
—
|
%
|
|
19
|
|
|
—
|
%
|
|
2,313
|
|
|
—
|
%
|
|
2,376
|
|
|
—
|
%
|
|
77,371
|
|
|
0.7
|
%
|
|
79,747
|
|
|
0.7
|
%
|
Oil and
gas
|
7
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
23
|
|
|
—
|
%
|
|
30
|
|
|
—
|
%
|
|
11,385
|
|
|
0.1
|
%
|
|
11,415
|
|
|
0.1
|
%
|
Residential care
facilities
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
233,248
|
|
|
2.2
|
%
|
|
233,248
|
|
|
2.2
|
%
|
Retail
buildings
|
222
|
|
|
—
|
%
|
|
263
|
|
|
—
|
%
|
|
850
|
|
|
—
|
%
|
|
1,335
|
|
|
—
|
%
|
|
448,829
|
|
|
4.2
|
%
|
|
450,164
|
|
|
4.2
|
%
|
Education/student
housing
|
—
|
|
|
—
|
%
|
|
1,427
|
|
|
—
|
%
|
|
503
|
|
|
—
|
%
|
|
1,930
|
|
|
—
|
%
|
|
144,214
|
|
|
1.3
|
%
|
|
146,144
|
|
|
1.4
|
%
|
Construction/development:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Education/student housing
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
48,175
|
|
|
0.4
|
%
|
|
48,175
|
|
|
0.4
|
%
|
Hotels/hospitality
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
25,559
|
|
|
0.2
|
%
|
|
25,559
|
|
|
0.2
|
%
|
Residential care facilities
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
36,667
|
|
|
0.3
|
%
|
|
36,667
|
|
|
0.3
|
%
|
All
other construction/development
|
2,139
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
5,476
|
|
|
0.1
|
%
|
|
7,615
|
|
|
0.1
|
%
|
|
182,201
|
|
|
1.7
|
%
|
|
189,816
|
|
|
1.8
|
%
|
All other
sectors
|
18,751
|
|
|
0.2
|
%
|
|
10,851
|
|
|
0.1
|
%
|
|
53,315
|
|
|
0.5
|
%
|
|
82,917
|
|
|
0.8
|
%
|
|
9,191,498
|
|
|
85.2
|
%
|
|
9,274,415
|
|
|
86.0
|
%
|
Total
loans
|
$
|
21,193
|
|
|
0.2
|
%
|
|
$
|
14,266
|
|
|
0.1
|
%
|
|
$
|
70,248
|
|
|
0.7
|
%
|
|
$
|
105,707
|
|
|
1.0
|
%
|
|
$
|
10,676,145
|
|
|
99.0
|
%
|
|
$
|
10,781,852
|
|
|
100.0
|
%
|
*
|
Percent of total
loans outstanding.
|
Loan
deferrals
The following table
represents loans that entered into and are currently in a deferment
offered by the Company to aid customers in the COVID-19 pandemic as
of September 30, 2020. Of these loan deferrals, 297 borrowers
applied for and received PPP loans totaling approximately $50.8
million:
|
|
|
Balance as
of
June 30, 2020
|
|
Loans returned to
full payment status, net of payments
|
|
Loans moved
into
a second deferral
|
|
New loans entered
into
first deferral
|
|
Balance as
of
September 30, 2020
|
|
|
Number of
loans
|
|
Outstanding
principal balance
|
|
*
|
|
Number of
loans
|
|
Outstanding
principal balance
|
|
Number of
loans
|
|
Outstanding
principal balance
|
|
Number of
loans
|
|
Outstanding
principal balance
|
|
Number of
loans
|
|
Outstanding
principal balance
|
|
*
|
Residential mortgage
loans
|
|
936
|
|
$
|
131,567
|
|
|
4.1
|
%
|
|
871
|
|
|
$
|
121,725
|
|
|
65
|
|
$
|
9,842
|
|
|
46
|
|
$
|
6,125
|
|
|
111
|
|
$
|
15,967
|
|
|
0.5
|
%
|
Home equity
loans
|
|
652
|
|
42,836
|
|
|
3.0
|
%
|
|
625
|
|
|
40,606
|
|
|
27
|
|
2,230
|
|
|
21
|
|
1,409
|
|
|
48
|
|
3,639
|
|
|
0.2
|
%
|
Consumer
loans
|
|
2,455
|
|
49,374
|
|
|
3.3
|
%
|
|
2,399
|
|
|
48,068
|
|
|
56
|
|
1,306
|
|
|
67
|
|
1,042
|
|
|
123
|
|
2,348
|
|
|
0.2
|
%
|
Commercial real
estate loans
|
|
1,511
|
|
967,340
|
|
|
29.2
|
%
|
|
1,434
|
|
|
794,288
|
|
|
77
|
|
173,052
|
|
|
17
|
|
10,609
|
|
|
94
|
|
183,661
|
|
|
5.5
|
%
|
Commercial
loans
|
|
652
|
|
120,999
|
|
|
8.9
|
%
|
|
635
|
|
|
119,029
|
|
|
17
|
|
1,970
|
|
|
11
|
|
5,115
|
|
|
28
|
|
7,085
|
|
|
0.5
|
%
|
Total
loans
|
|
6,206
|
|
$
|
1,312,116
|
|
|
12.1
|
%
|
|
5,964
|
|
|
$
|
1,123,716
|
|
|
242
|
|
$
|
188,400
|
|
|
162
|
|
$
|
24,300
|
|
|
404
|
|
$
|
212,700
|
**
|
|
2.0
|
%
|
*
|
Percent of total
loans outstanding by the respective total amount of that type of
loan.
|
**
|
As of September 30,
2020, $177.9 million of loan deferrals expire in Q4 2020 and $34.8
million of loan deferrals expire in Q1 2021. In addition, of
the $212,700 total loan deferrals, $153.2 million are in the
hospitality industry.
|
Northwest
Bancshares, Inc. and Subsidiaries
Allowance for Credit Losses (Unaudited) (dollars in
thousands)
|
|
Quarter ended
|
|
September
30,
2020
|
|
June 30,
2020
|
|
March 31,
2020
|
|
December
31,
2019
|
|
September
30,
2019
|
Beginning
balance
|
$
|
140,586
|
|
|
92,897
|
|
|
57,941
|
|
|
52,859
|
|
|
53,107
|
|
CECL
adoption
|
—
|
|
|
—
|
|
|
10,792
|
|
|
—
|
|
|
—
|
|
Initial allowance on
loans purchased with credit deterioration
|
—
|
|
|
8,845
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Provision
|
6,818
|
|
|
51,750
|
|
|
27,637
|
|
|
8,223
|
|
|
3,302
|
|
Charge-offs
residential mortgage
|
(129)
|
|
|
(38)
|
|
|
(343)
|
|
|
(222)
|
|
|
(190)
|
|
Charge-offs home
equity
|
(88)
|
|
|
(173)
|
|
|
(289)
|
|
|
(113)
|
|
|
(466)
|
|
Charge-offs
consumer
|
(3,356)
|
|
|
(3,191)
|
|
|
(3,488)
|
|
|
(3,142)
|
|
|
(3,078)
|
|
Charge-offs
commercial real estate
|
(532)
|
|
|
(690)
|
|
|
(331)
|
|
|
(107)
|
|
|
(389)
|
|
Charge-offs
commercial
|
(4,892)
|
|
|
(10,349)
|
|
|
(815)
|
|
|
(1,143)
|
|
|
(1,151)
|
|
Recoveries
|
1,802
|
|
|
1,535
|
|
|
1,793
|
|
|
1,586
|
|
|
1,724
|
|
Ending
balance
|
$
|
140,209
|
|
|
140,586
|
|
|
92,897
|
|
|
57,941
|
|
|
52,859
|
|
Net charge-offs to
average loans, annualized
|
0.27
|
%
|
|
0.51
|
%
|
|
0.16
|
%
|
|
0.14
|
%
|
|
0.16
|
%
|
|
Nine months ended
September 30,
|
|
2020
|
|
2019
|
Beginning
balance
|
$
|
57,941
|
|
|
55,214
|
|
CECL
adoption
|
10,792
|
|
|
—
|
|
Initial allowance on
loans purchased with credit deterioration
|
8,845
|
|
|
—
|
|
Provision
|
86,205
|
|
|
14,436
|
|
Charge-offs
residential mortgage
|
(510)
|
|
|
(944)
|
|
Charge-offs home
equity
|
(550)
|
|
|
(1,008)
|
|
Charge-offs
consumer
|
(10,035)
|
|
|
(8,665)
|
|
Charge-offs
commercial real estate
|
(1,553)
|
|
|
(5,360)
|
|
Charge-offs
commercial
|
(16,056)
|
|
|
(5,508)
|
|
Recoveries
|
5,130
|
|
|
4,694
|
|
Ending
balance
|
$
|
140,209
|
|
|
52,859
|
|
Net charge-offs to
average loans, annualized
|
0.32
|
%
|
|
0.26
|
%
|
|
September 30,
2020
|
|
Originated
loans
|
|
Acquired
loans
|
|
Total
loans
|
|
Balance
|
|
Reserve
|
|
Balance
|
|
Reserve
|
|
Balance
|
|
Reserve
|
Residential mortgage
loans
|
$
|
2,794,489
|
|
|
10,244
|
|
|
348,880
|
|
|
1,792
|
|
|
3,143,369
|
|
|
12,036
|
|
Home equity
loans
|
1,169,709
|
|
|
7,488
|
|
|
314,656
|
|
|
2,097
|
|
|
1,484,365
|
|
|
9,585
|
|
Consumer
loans
|
1,242,220
|
|
|
16,433
|
|
|
244,863
|
|
|
3,427
|
|
|
1,487,083
|
|
|
19,860
|
|
Personal Banking
Loans
|
5,206,418
|
|
|
34,165
|
|
|
908,399
|
|
|
7,316
|
|
|
6,114,817
|
|
|
41,481
|
|
Commercial real
estate loans
|
2,488,967
|
|
|
66,960
|
|
|
830,776
|
|
|
20,020
|
|
|
3,319,743
|
|
|
86,980
|
|
Commercial
loans
|
1,147,492
|
|
|
8,455
|
|
|
199,800
|
|
|
3,293
|
|
|
1,347,292
|
|
|
11,748
|
|
Commercial Banking
Loans
|
3,636,459
|
|
|
75,415
|
|
|
1,030,576
|
|
|
23,313
|
|
|
4,667,035
|
|
|
98,728
|
|
Total
Loans
|
$
|
8,842,877
|
|
|
109,580
|
|
|
1,938,975
|
|
|
30,629
|
|
|
10,781,852
|
|
|
140,209
|
|
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,
2020
|
|
June 30,
2020
|
|
March 31,
2020
|
|
December 31,
2019
|
|
September 30,
2019
|
|
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
|
$
|
3,176,436
|
|
|
28,769
|
|
|
3.62
|
%
|
|
$
|
3,092,392
|
|
|
29,019
|
|
|
3.75
|
%
|
|
$
|
2,845,483
|
|
|
28,062
|
|
|
3.94
|
%
|
|
$
|
2,847,932
|
|
|
28,011
|
|
|
3.93
|
%
|
|
$
|
2,894,716
|
|
|
28,991
|
|
|
4.01
|
%
|
Home equity
loans
|
1,479,429
|
|
|
13,732
|
|
|
3.69
|
%
|
|
1,415,091
|
|
|
13,806
|
|
|
3.92
|
%
|
|
1,345,059
|
|
|
14,801
|
|
|
4.43
|
%
|
|
1,333,748
|
|
|
15,354
|
|
|
4.57
|
%
|
|
1,316,033
|
|
|
16,131
|
|
|
4.86
|
%
|
Consumer
loans
|
1,437,828
|
|
|
15,851
|
|
|
4.39
|
%
|
|
1,375,130
|
|
|
14,993
|
|
|
4.39
|
%
|
|
1,123,336
|
|
|
12,160
|
|
|
4.35
|
%
|
|
1,073,565
|
|
|
12,016
|
|
|
4.44
|
%
|
|
1,028,579
|
|
|
11,916
|
|
|
4.60
|
%
|
Commercial real estate
loans
|
3,306,386
|
|
|
36,887
|
|
|
4.37
|
%
|
|
3,156,749
|
|
|
34,595
|
|
|
4.34
|
%
|
|
2,747,419
|
|
|
31,437
|
|
|
4.53
|
%
|
|
2,741,687
|
|
|
32,985
|
|
|
4.71
|
%
|
|
2,796,351
|
|
|
34,441
|
|
|
4.82
|
%
|
Commercial
loans
|
1,377,223
|
|
|
12,603
|
|
|
3.58
|
%
|
|
1,161,228
|
|
|
11,269
|
|
|
3.84
|
%
|
|
712,621
|
|
|
8,856
|
|
|
4.92
|
%
|
|
717,438
|
|
|
9,841
|
|
|
5.37
|
%
|
|
710,847
|
|
|
9,949
|
|
|
5.48
|
%
|
Total loans receivable
(a) (b) (d)
|
10,777,302
|
|
|
107,842
|
|
|
3.98
|
%
|
|
10,200,590
|
|
|
103,682
|
|
|
4.09
|
%
|
|
8,773,918
|
|
|
95,316
|
|
|
4.37
|
%
|
|
8,714,370
|
|
|
98,207
|
|
|
4.47
|
%
|
|
8,746,526
|
|
|
101,428
|
|
|
4.60
|
%
|
Mortgage-backed
securities (c)
|
1,004,803
|
|
|
4,651
|
|
|
1.85
|
%
|
|
714,657
|
|
|
4,038
|
|
|
2.26
|
%
|
|
668,470
|
|
|
4,175
|
|
|
2.50
|
%
|
|
667,910
|
|
|
4,237
|
|
|
2.54
|
%
|
|
641,085
|
|
|
4,188
|
|
|
2.61
|
%
|
Investment securities
(c) (d)
|
216,081
|
|
|
1,336
|
|
|
2.47
|
%
|
|
170,309
|
|
|
1,244
|
|
|
2.92
|
%
|
|
144,152
|
|
|
881
|
|
|
2.44
|
%
|
|
151,289
|
|
|
938
|
|
|
2.48
|
%
|
|
218,753
|
|
|
1,168
|
|
|
2.14
|
%
|
FHLB stock, at
cost
|
25,595
|
|
|
218
|
|
|
3.39
|
%
|
|
22,192
|
|
|
309
|
|
|
5.60
|
%
|
|
15,931
|
|
|
262
|
|
|
6.61
|
%
|
|
13,400
|
|
|
262
|
|
|
7.76
|
%
|
|
16,302
|
|
|
307
|
|
|
7.47
|
%
|
Other interest-earning
deposits
|
791,601
|
|
|
221
|
|
|
0.11
|
%
|
|
623,870
|
|
|
185
|
|
|
0.12
|
%
|
|
34,697
|
|
|
135
|
|
|
1.54
|
%
|
|
31,624
|
|
|
169
|
|
|
2.09
|
%
|
|
28,832
|
|
|
172
|
|
|
2.33
|
%
|
Total
interest-earning assets
|
12,815,382
|
|
|
114,268
|
|
|
3.55
|
%
|
|
11,731,618
|
|
|
109,458
|
|
|
3.75
|
%
|
|
9,637,168
|
|
|
100,769
|
|
|
4.21
|
%
|
|
9,578,593
|
|
|
103,813
|
|
|
4.30
|
%
|
|
9,651,498
|
|
|
107,263
|
|
|
4.41
|
%
|
Noninterest-earning
assets (e)
|
1,088,273
|
|
|
|
|
|
|
1,858,513
|
|
|
|
|
|
|
960,303
|
|
|
|
|
|
|
869,117
|
|
|
|
|
|
|
916,781
|
|
|
|
|
|
Total
assets
|
$
|
13,903,655
|
|
|
|
|
|
|
$
|
13,590,131
|
|
|
|
|
|
|
$
|
10,597,471
|
|
|
|
|
|
|
$
|
10,447,710
|
|
|
|
|
|
|
$
|
10,568,279
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
deposits
|
$
|
2,015,604
|
|
|
648
|
|
|
0.13
|
%
|
|
$
|
1,884,202
|
|
|
648
|
|
|
0.14
|
%
|
|
$
|
1,611,111
|
|
|
727
|
|
|
0.18
|
%
|
|
$
|
1,615,996
|
|
|
792
|
|
|
0.19
|
%
|
|
$
|
1,658,670
|
|
|
788
|
|
|
0.19
|
%
|
Interest-bearing
demand deposits
|
2,680,591
|
|
|
763
|
|
|
0.11
|
%
|
|
2,428,060
|
|
|
812
|
|
|
0.13
|
%
|
|
1,915,871
|
|
|
1,307
|
|
|
0.27
|
%
|
|
1,769,623
|
|
|
1,570
|
|
|
0.35
|
%
|
|
1,655,952
|
|
|
1,711
|
|
|
0.41
|
%
|
Money market deposit
accounts
|
2,347,097
|
|
|
1,347
|
|
|
0.23
|
%
|
|
2,204,810
|
|
|
1,600
|
|
|
0.29
|
%
|
|
1,921,243
|
|
|
3,088
|
|
|
0.65
|
%
|
|
1,845,535
|
|
|
3,226
|
|
|
0.69
|
%
|
|
1,798,175
|
|
|
3,772
|
|
|
0.83
|
%
|
Time
deposits
|
1,782,350
|
|
|
5,685
|
|
|
1.27
|
%
|
|
1,761,260
|
|
|
6,276
|
|
|
1.43
|
%
|
|
1,528,891
|
|
|
6,281
|
|
|
1.65
|
%
|
|
1,607,992
|
|
|
7,305
|
|
|
1.80
|
%
|
|
1,618,591
|
|
|
7,423
|
|
|
1.82
|
%
|
Borrowed funds
(f)
|
420,715
|
|
|
717
|
|
|
0.68
|
%
|
|
371,700
|
|
|
296
|
|
|
0.32
|
%
|
|
240,118
|
|
|
709
|
|
|
1.19
|
%
|
|
177,670
|
|
|
444
|
|
|
0.99
|
%
|
|
243,960
|
|
|
1,002
|
|
|
1.63
|
%
|
Junior subordinated
debentures
|
128,658
|
|
|
720
|
|
|
2.19
|
%
|
|
127,472
|
|
|
837
|
|
|
2.60
|
%
|
|
121,809
|
|
|
1,038
|
|
|
3.37
|
%
|
|
121,796
|
|
|
1,136
|
|
|
3.65
|
%
|
|
121,767
|
|
|
1,235
|
|
|
3.97
|
%
|
Total
interest-bearing liabilities
|
9,375,015
|
|
|
9,880
|
|
|
0.42
|
%
|
|
8,777,504
|
|
|
10,469
|
|
|
0.48
|
%
|
|
7,339,043
|
|
|
13,150
|
|
|
0.72
|
%
|
|
7,138,612
|
|
|
14,473
|
|
|
0.80
|
%
|
|
7,097,115
|
|
|
15,931
|
|
|
0.89
|
%
|
Noninterest-bearing
demand deposits (g)
|
2,703,266
|
|
|
|
|
|
|
2,401,368
|
|
|
|
|
|
|
1,640,180
|
|
|
|
|
|
|
1,800,861
|
|
|
|
|
|
|
1,915,392
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
284,440
|
|
|
|
|
|
|
882,391
|
|
|
|
|
|
|
268,139
|
|
|
|
|
|
|
158,434
|
|
|
|
|
|
|
216,433
|
|
|
|
|
|
Total
liabilities
|
12,362,721
|
|
|
|
|
|
|
12,061,263
|
|
|
|
|
|
|
9,247,362
|
|
|
|
|
|
|
9,097,907
|
|
|
|
|
|
|
9,228,940
|
|
|
|
|
|
Shareholders'
equity
|
1,540,934
|
|
|
|
|
|
|
1,528,868
|
|
|
|
|
|
|
1,350,109
|
|
|
|
|
|
|
1,349,803
|
|
|
|
|
|
|
1,339,339
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
13,903,655
|
|
|
|
|
|
|
$
|
13,590,131
|
|
|
|
|
|
|
$
|
10,597,471
|
|
|
|
|
|
|
$
|
10,447,710
|
|
|
|
|
|
|
$
|
10,568,279
|
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
104,388
|
|
|
3.13
|
%
|
|
|
|
98,989
|
|
|
3.27
|
%
|
|
|
|
87,619
|
|
|
3.48
|
%
|
|
|
|
89,340
|
|
|
3.50
|
%
|
|
|
|
91,332
|
|
|
3.52
|
%
|
Net interest-earning
assets/Net interest margin
|
$
|
3,440,367
|
|
|
|
|
3.26
|
%
|
|
$
|
2,954,114
|
|
|
|
|
3.38
|
%
|
|
$
|
2,298,125
|
|
|
|
|
3.66
|
%
|
|
$
|
2,439,981
|
|
|
|
|
3.73
|
%
|
|
$
|
2,554,383
|
|
|
|
|
3.79
|
%
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.37X
|
|
|
|
|
|
|
1.34X
|
|
|
|
|
|
|
1.31X
|
|
|
|
|
|
|
1.34X
|
|
|
|
|
|
|
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, collateralized borrowings and subordinated
debt.
|
(g)
|
Average cost of
deposits were 0.29%, 0.35%, 0.53%, 0.59%, and 0.63%,
respectively.
|
(h)
|
Shown on a FTE basis.
GAAP basis yields for the periods indicated were: Loans - 3.96%,
4.06%, 4.35%, 4.46%, and 4.59%, respectively, Investment
securities - 2.00%, 2.36%, 2.31%, 2.34%, and 2.03%,
respectively, Interest-earning assets - 3.52% 3.72%, 4.19%,
4.28%, and 4.39%, respectively. GAAP basis net interest rate
spreads were 3.10%, 3.24%, 3.47%, 3.48%, and 3.50%, respectively,
and GAAP basis net interest margins were 3.23%, 3.34%, 3.64%,
3.71%, and 3.77%, 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.
|
|
|
Nine months ended
September 30,
|
|
2020
|
|
2019
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
3,038,712
|
|
|
85,850
|
|
|
3.77
|
%
|
|
$
|
2,865,091
|
|
|
87,572
|
|
|
4.08
|
%
|
Home equity
loans
|
1,424,580
|
|
|
42,340
|
|
|
3.97
|
%
|
|
1,300,537
|
|
|
48,868
|
|
|
5.02
|
%
|
Consumer
loans
|
1,302,282
|
|
|
43,004
|
|
|
4.41
|
%
|
|
949,303
|
|
|
32,844
|
|
|
4.60
|
%
|
Commercial real estate
loans
|
3,071,047
|
|
|
102,918
|
|
|
4.40
|
%
|
|
2,720,435
|
|
|
99,930
|
|
|
4.84
|
%
|
Commercial
loans
|
1,084,739
|
|
|
32,727
|
|
|
3.96
|
%
|
|
665,867
|
|
|
28,724
|
|
|
5.69
|
%
|
Loans receivable
(a) (b) (d)
|
9,921,360
|
|
|
306,839
|
|
|
4.13
|
%
|
|
8,501,233
|
|
|
297,938
|
|
|
4.69
|
%
|
Mortgage-backed
securities (c)
|
796,739
|
|
|
12,865
|
|
|
2.15
|
%
|
|
630,279
|
|
|
12,433
|
|
|
2.63
|
%
|
Investment securities
(c) (d)
|
176,991
|
|
|
3,461
|
|
|
2.61
|
%
|
|
224,111
|
|
|
3,532
|
|
|
2.10
|
%
|
FHLB stock, at
cost
|
21,255
|
|
|
789
|
|
|
4.96
|
%
|
|
14,840
|
|
|
794
|
|
|
7.15
|
%
|
Other interest-earning
deposits
|
483,390
|
|
|
541
|
|
|
0.15
|
%
|
|
20,531
|
|
|
431
|
|
|
2.77
|
%
|
Total
interest-earning assets
|
11,399,735
|
|
|
324,495
|
|
|
3.80
|
%
|
|
9,390,994
|
|
|
315,128
|
|
|
4.49
|
%
|
Noninterest-earning
assets (e)
|
1,190,283
|
|
|
|
|
|
|
898,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
12,590,018
|
|
|
|
|
|
|
$
|
10,289,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings
deposits
|
$
|
1,837,624
|
|
|
2,023
|
|
|
0.15
|
%
|
|
$
|
1,668,806
|
|
|
2,323
|
|
|
0.19
|
%
|
Interest-bearing
demand deposits
|
2,342,748
|
|
|
2,882
|
|
|
0.16
|
%
|
|
1,611,554
|
|
|
4,442
|
|
|
0.37
|
%
|
Money market deposit
accounts
|
2,157,212
|
|
|
6,035
|
|
|
0.37
|
%
|
|
1,756,251
|
|
|
9,784
|
|
|
0.74
|
%
|
Time
deposits
|
1,691,168
|
|
|
18,243
|
|
|
1.44
|
%
|
|
1,538,113
|
|
|
19,774
|
|
|
1.72
|
%
|
Borrowed funds
(f)
|
344,457
|
|
|
1,721
|
|
|
0.67
|
%
|
|
216,160
|
|
|
2,421
|
|
|
1.50
|
%
|
Junior subordinated
debentures
|
125,988
|
|
|
2,595
|
|
|
2.71
|
%
|
|
119,417
|
|
|
3,698
|
|
|
4.08
|
%
|
Total
interest-bearing liabilities
|
8,499,197
|
|
|
33,499
|
|
|
0.53
|
%
|
|
6,910,301
|
|
|
42,442
|
|
|
0.82
|
%
|
Noninterest-bearing
demand deposits (g)
|
2,250,864
|
|
|
|
|
|
|
1,847,344
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
243,705
|
|
|
|
|
|
|
219,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
10,993,766
|
|
|
|
|
|
|
8,977,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
1,596,252
|
|
|
|
|
|
|
1,312,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
12,590,018
|
|
|
|
|
|
|
$
|
10,289,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
290,996
|
|
|
3.27
|
%
|
|
|
|
272,686
|
|
|
3.67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets/Net interest margin
|
$
|
2,900,538
|
|
|
|
|
3.40
|
%
|
|
$
|
2,480,693
|
|
|
|
|
3.87
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.34X
|
|
|
|
|
|
|
1.36X
|
|
|
|
|
|
(a)
|
Average gross loans
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, collateralized borrowings and subordinated
debt.
|
(g)
|
Average cost of
deposits were 0.38% and 0.58%, respectively.
|
(h)
|
Shown on a FTE basis.
GAAP basis yields were: Loans — 4.11% and 4.67%, respectively;
Investment securities — 2.20% and 2.00%, respectively;
Interest-earning assets — 3.78% and 4.47%, respectively. GAAP
basis net interest rate spreads were 3.25% and 3.65%, respectively;
and GAAP basis net interest margins were 3.38% and 3.86%,
respectively.
|
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SOURCE Northwest Bancshares, Inc.