WARREN, Pa., July 26, 2021
/PRNewswire/ -- Northwest Bancshares, Inc. (the "Company")
(NasdaqGS: NWBI) announced net income for the quarter ended
June 30, 2021 of $49.0 million,
or $0.38 per diluted share.
This represents an increase of $55.2
million compared to the same quarter last year, when the
Company experienced a net loss of $6.2
million, or ($0.05) per
diluted share, due primarily to COVID-19 related credit loss
provisioning. The annualized returns on average shareholders'
equity and average assets for the quarter ended June 30, 2021
were 12.58% and 1.37% compared to (1.63%) and (0.18%) for the same
quarter last year. The Company's current period earnings were
enhanced by a $25.3 million pre-tax
gain from the previously disclosed sale of its insurance business
to USI Insurance Services on April 30,
2021.
The Company also announced that its Board of Directors declared
a quarterly cash dividend of $0.20
per share payable on August 16, 2021 to shareholders of record
as of August 5, 2021. This is the 107th
consecutive quarter in which the Company has paid a cash dividend.
Based on the market value of the Company's common stock as of
June 30, 2021, this represents an annualized dividend yield of
approximately 5.9%.
In making this announcement, Ronald J.
Seiffert, Chairman, President and CEO, noted, "We continue
to experience the negative effects of the current low interest rate
environment on our net interest income along with excess liquidity,
both at the bank level and from a customer perspective, causing
low, and falling, net interest margins. Our net interest
margin decreased 27 basis points from the first quarter of 2021 to
2.91% due mostly to lower loan yields which accounted for
approximately 15 basis points of this decline. In addition,
purchase accounting and PPP accretion was $3.5 million lower this quarter than the first
quarter 2021, contributing another 11 basis points to this
decline. Furthermore, slower loan demand which, along with
PPP forgiveness, is muting loan growth. Fortunately, this
excess liquidity, assisted through government stimulus, has kept
loan delinquency and actual loan losses in check, enabling us to
recoup the excess COVID-19 reserves of 2020 and right size our
allowance for credit losses."
Mr. Seiffert continued, "We also continue to invest in our
people, infrastructure and technology as we believe this short-term
expense is essential to remain competitive as we ultimately look to
scale in size in order to recognize long-term efficiencies.
Our customers demand ease, speed, convenience and security and we
want to ensure that our existing and new customers experience the
innovation and technology they expect and deserve."
Net interest income decreased by $2.3
million, or 2.4%, to $95.7
million for the quarter ended June 30, 2021, from
$98.1 million for the quarter ended
June 30, 2020, largely due to a $7.8
million, or 7.5%, decrease in interest income on loans
receivable. This decrease in interest income on loans was
mainly due to a decrease in the average loan yield to 3.73% for the
quarter ended June 30, 2021 from 4.09% for the quarter ended
June 30, 2020. Also contributing to the decrease in
interest income on loans was a decrease of $96.8 million, or 0.9%, in the average balance of
loans. Partially offsetting this decrease was a decrease of
$4.6 million, or 48.9%, in interest
expense on deposits due to a decline in market interest rates when
compared to the prior year, resulting in a decrease in the cost of
our interest-bearing liabilities to 0.29% for the quarter ended
June 30, 2021 from 0.48% for the quarter ended June 30,
2020. The net effect of the changes in interest rates and
average balances was a decrease in net interest margin to 2.91% for
the quarter ended June 30, 2021 from 3.38% for the same
quarter last year.
Our credit loss reserve process and modeling concluded that no
provision for credit losses was necessary this quarter, which
represents a decrease of $51.8
million compared to the quarter ended June 30,
2020. This decrease was primarily due to continued
improvements in economic forecasts compared to the uncertainty that
existed last year in industries impacted by COVID-19.
Noninterest expense decreased by $2.8
million, or 3.2%, to $86.3
million for the quarter ended June
30, 2021, from $89.2 million
for the quarter ended June 30,
2020. This decrease was primarily due to a decline of
$9.0 million, or 93.5%, in merger
related expenses due to expenses incurred in the prior year as a
result of the acquisition of MutualFirst Financial, Inc. Also
contributing to this decrease was a reduction of $6.4 million, or 81.9%, in other expenses
primarily due to an elevated reserve for unfunded commitments
during the second quarter of 2020 resulting from the estimated
economic impact of COVID-19. Partially offsetting these
decreases was an increase of $8.8
million, or 22.1%, in compensation and employee benefits due
primarily to increases in health insurance and other benefit costs,
regular merit expense and the addition of MutualBank employees and
other strategic personnel. Also contributing to this increase was
an increase of $3.5 million, or
29.7%, in processing expenses as we continue to invest in
technology and infrastructure and as activity-driven utilization
fees for ATM, check card, and online and mobile banking has
increased. Lastly, there was an increase of $1.4 million, or 49.8%, in professional service
expense for the quarter ended June 30,
2021 due primarily to the utilization of third-party experts
to assist with our digital strategy rollout.
Noninterest expense decreased by $2.8
million, or 3.2%, to $86.3
million for the quarter ended June 30, 2021, from
$89.2 million for the quarter ended
June 30, 2020. This decrease was primarily due to a
decline of $9.0 million, or 93.5%, in
merger related expenses due to expenses incurred in the prior year
as a result of the acquisition of MutualFirst Financial, Inc. Also
contributing to this decrease was a reduction of $6.4 million, or 81.9%, in other expenses
primarily due to an elevated reserve for unfunded commitments
during the second quarter of 2020 resulting from the estimated
economic impact of COVID-19. Partially offsetting these
decreases was an increase of $8.8
million, or 22.1%, in compensation and employee benefits due
primarily to increases in health insurance and other benefit costs,
regular merit expense and the addition of MutualBank employees and
other strategic personnel. Also contributing to this increase was
an increase of $3.5 million, or
29.7%, in processing expenses as we continue to invest in
technology and infrastructure and as activity-driven utilization
fees for ATM, check card, and online and mobile banking has
increased. Lastly, there was an increase of $1.4 million, or 49.8%, in professional service
expense for the quarter ended June 30, 2021 due primarily to
the utilization of third-party experts to assist with our digital
strategy rollout.
The provision for income taxes increased by $16.3 million to an expense of $15.1 million for the quarter ended June 30,
2021, from a tax benefit of $1.1
million for the quarter ended June 30, 2020. This
increase in income taxes was due to higher income before income
taxes.
Northwest Bancshares, Inc. is the holding company of Northwest
Bank, which is headquartered in Warren, Pennsylvania. Founded in 1896,
Northwest Bank is a full-service financial institution offering a
complete line of business and personal banking products, as well as
employee benefits and wealth management services. As of
June 30, 2021, Northwest operated 162 full-service community
banking offices and eight free standing drive-through facilities in
Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares,
Inc.'s common stock is listed on the NASDAQ Global Select Market
("NWBI"). Additional information regarding Northwest Bancshares,
Inc. and Northwest Bank can be accessed on-line at
www.northwest.com.
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)
|
|
|
June 30,
2021
|
|
December
31,
2020
|
|
June 30,
2020
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
857,152
|
|
|
736,277
|
|
|
837,227
|
|
Marketable securities
available-for-sale (amortized cost of $1,593,813, $1,375,685 and
$1,176,258,
respectively)
|
1,599,024
|
|
|
1,398,941
|
|
|
1,198,792
|
|
Marketable securities
held-to-maturity (fair value of $632,620, $179,666 and $17,245,
respectively)
|
639,424
|
|
|
178,887
|
|
|
16,415
|
|
Total cash and cash
equivalents and marketable securities
|
3,095,600
|
|
|
2,314,105
|
|
|
2,052,434
|
|
|
|
|
|
|
|
Residential mortgage
loans held-for-sale
|
29,055
|
|
|
58,786
|
|
|
34,118
|
|
Residential mortgage
loans
|
2,925,496
|
|
|
3,009,335
|
|
|
3,188,637
|
|
Home equity
loans
|
1,376,228
|
|
|
1,467,736
|
|
|
1,450,370
|
|
Consumer
loans
|
1,745,231
|
|
|
1,507,993
|
|
|
1,518,119
|
|
Commercial real
estate loans
|
3,215,189
|
|
|
3,345,889
|
|
|
3,308,824
|
|
Commercial
loans
|
1,018,781
|
|
|
1,191,110
|
|
|
1,358,719
|
|
Total loans
receivable
|
10,309,980
|
|
|
10,580,849
|
|
|
10,858,787
|
|
Allowance for credit
losses
|
(117,330)
|
|
|
(134,427)
|
|
|
(140,586)
|
|
Loans receivable,
net
|
10,192,650
|
|
|
10,446,422
|
|
|
10,718,201
|
|
|
|
|
|
|
|
FHLB stock, at
cost
|
23,287
|
|
|
21,748
|
|
|
25,542
|
|
Accrued interest
receivable
|
27,585
|
|
|
35,554
|
|
|
40,510
|
|
Real estate owned,
net
|
1,353
|
|
|
2,232
|
|
|
1,897
|
|
Premises and
equipment, net
|
156,076
|
|
|
161,538
|
|
|
166,966
|
|
Bank-owned life
insurance
|
253,539
|
|
|
253,951
|
|
|
251,897
|
|
Goodwill
|
380,997
|
|
|
382,279
|
|
|
386,044
|
|
Other intangible
assets, net
|
15,362
|
|
|
19,936
|
|
|
23,381
|
|
Other
assets
|
151,607
|
|
|
168,503
|
|
|
178,212
|
|
Total
assets
|
$
|
14,298,056
|
|
|
13,806,268
|
|
|
13,845,084
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$
|
3,002,632
|
|
|
2,716,224
|
|
|
2,686,487
|
|
Interest-bearing
demand deposits
|
2,824,219
|
|
|
2,755,950
|
|
|
2,632,310
|
|
Money market deposit
accounts
|
2,538,607
|
|
|
2,437,539
|
|
|
2,327,286
|
|
Savings
deposits
|
2,262,152
|
|
|
2,047,424
|
|
|
1,993,761
|
|
Time
deposits
|
1,463,098
|
|
|
1,642,096
|
|
|
1,823,097
|
|
Total
deposits
|
12,090,708
|
|
|
11,599,233
|
|
|
11,462,941
|
|
|
|
|
|
|
|
Borrowed
funds
|
257,377
|
|
|
283,044
|
|
|
440,079
|
|
Junior subordinated
debentures
|
128,924
|
|
|
128,794
|
|
|
128,630
|
|
Advances by borrowers
for taxes and insurance
|
53,608
|
|
|
45,230
|
|
|
58,559
|
|
Accrued interest
payable
|
1,820
|
|
|
2,054
|
|
|
1,389
|
|
Other
liabilities
|
190,258
|
|
|
209,210
|
|
|
222,637
|
|
Total
liabilities
|
12,722,695
|
|
|
12,267,565
|
|
|
12,314,235
|
|
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, 127,907,885, 127,019,452,
and
127,838,400 shares issued and outstanding, respectively
|
1,279
|
|
|
1,270
|
|
|
1,278
|
|
Additional paid-in
capital
|
1,025,174
|
|
|
1,015,502
|
|
|
1,023,083
|
|
Retained
earnings
|
595,100
|
|
|
555,480
|
|
|
530,928
|
|
Accumulated other
comprehensive loss
|
(46,192)
|
|
|
(33,549)
|
|
|
(24,440)
|
|
Total shareholders'
equity
|
1,575,361
|
|
|
1,538,703
|
|
|
1,530,849
|
|
Total liabilities and
shareholders' equity
|
$
|
14,298,056
|
|
|
13,806,268
|
|
|
13,845,084
|
|
|
|
|
|
|
|
Equity to
assets
|
11.02
|
%
|
|
11.14
|
%
|
|
11.06
|
%
|
Tangible common equity
to assets*
|
8.48
|
%
|
|
8.48
|
%
|
|
8.35
|
%
|
Book value per
share
|
$
|
12.32
|
|
|
12.11
|
|
|
11.97
|
|
Tangible book value
per share*
|
$
|
9.22
|
|
|
8.95
|
|
|
8.77
|
|
Closing market price
per share
|
$
|
13.64
|
|
|
12.74
|
|
|
10.23
|
|
Full time equivalent
employees
|
2,393
|
|
|
2,421
|
|
|
2,518
|
|
Number of banking
offices
|
170
|
|
|
170
|
|
|
213
|
|
|
*
Excludes goodwill and other intangible assets
(non-GAAP).
|
Northwest
Bancshares, Inc. and Subsidiaries
Consolidated
Statements of Income/(Loss) (Unaudited)
(dollars in
thousands, except per share amounts)
|
|
|
Quarter ended
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December
31,
2020
|
|
September
30,
2020
|
|
June 30,
2020
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
$
|
95,255
|
|
|
102,318
|
|
|
105,681
|
|
|
107,241
|
|
|
103,012
|
|
Mortgage-backed
securities
|
5,680
|
|
|
4,200
|
|
|
4,551
|
|
|
4,652
|
|
|
4,038
|
|
Taxable investment
securities
|
693
|
|
|
634
|
|
|
471
|
|
|
427
|
|
|
439
|
|
Tax-free investment
securities
|
594
|
|
|
575
|
|
|
656
|
|
|
655
|
|
|
564
|
|
FHLB stock
dividends
|
138
|
|
|
116
|
|
|
192
|
|
|
218
|
|
|
309
|
|
Interest-earning
deposits
|
192
|
|
|
183
|
|
|
178
|
|
|
221
|
|
|
185
|
|
Total interest
income
|
102,552
|
|
|
108,026
|
|
|
111,729
|
|
|
113,414
|
|
|
108,547
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
4,773
|
|
|
5,514
|
|
|
6,714
|
|
|
8,443
|
|
|
9,336
|
|
Borrowed
funds
|
2,050
|
|
|
2,054
|
|
|
2,127
|
|
|
1,437
|
|
|
1,133
|
|
Total interest
expense
|
6,823
|
|
|
7,568
|
|
|
8,841
|
|
|
9,880
|
|
|
10,469
|
|
Net interest
income
|
95,729
|
|
|
100,458
|
|
|
102,888
|
|
|
103,534
|
|
|
98,078
|
|
Provision for credit losses
|
—
|
|
|
(5,620)
|
|
|
(2,230)
|
|
|
6,818
|
|
|
51,750
|
|
Net interest income
after provision for credit losses
|
95,729
|
|
|
106,078
|
|
|
105,118
|
|
|
96,716
|
|
|
46,328
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
Gain/(loss) on sale of
investments
|
(105)
|
|
|
(21)
|
|
|
75
|
|
|
(12)
|
|
|
(8)
|
|
Service charges and
fees
|
12,744
|
|
|
12,394
|
|
|
13,074
|
|
|
14,354
|
|
|
13,069
|
|
Trust and other
financial services income
|
7,435
|
|
|
6,484
|
|
|
5,722
|
|
|
5,376
|
|
|
4,823
|
|
Insurance commission
income
|
1,043
|
|
|
2,546
|
|
|
2,034
|
|
|
2,331
|
|
|
2,395
|
|
Gain/(loss) on real
estate owned, net
|
166
|
|
|
(42)
|
|
|
114
|
|
|
(32)
|
|
|
(97)
|
|
Income from bank-owned
life insurance
|
1,639
|
|
|
1,736
|
|
|
1,330
|
|
|
1,576
|
|
|
1,248
|
|
Mortgage banking
income
|
3,811
|
|
|
6,020
|
|
|
7,120
|
|
|
11,055
|
|
|
12,022
|
|
Gain on sale of
insurance business
|
25,327
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other operating
income
|
2,648
|
|
|
2,836
|
|
|
2,654
|
|
|
2,022
|
|
|
2,044
|
|
Total noninterest
income
|
54,708
|
|
|
31,953
|
|
|
32,123
|
|
|
36,670
|
|
|
35,496
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
48,894
|
|
|
47,239
|
|
|
48,209
|
|
|
47,371
|
|
|
40,049
|
|
Premises and occupancy
costs
|
7,410
|
|
|
8,814
|
|
|
7,614
|
|
|
8,342
|
|
|
7,195
|
|
Office
operations
|
3,317
|
|
|
3,165
|
|
|
4,009
|
|
|
4,626
|
|
|
3,711
|
|
Collections
expense
|
303
|
|
|
616
|
|
|
893
|
|
|
1,264
|
|
|
644
|
|
Processing
expenses
|
15,151
|
|
|
13,456
|
|
|
12,186
|
|
|
15,042
|
|
|
11,680
|
|
Marketing
expenses
|
2,101
|
|
|
1,980
|
|
|
1,994
|
|
|
2,147
|
|
|
2,047
|
|
Federal deposit
insurance premiums
|
1,353
|
|
|
1,307
|
|
|
1,651
|
|
|
1,498
|
|
|
1,618
|
|
Professional
services
|
4,231
|
|
|
4,582
|
|
|
3,599
|
|
|
3,246
|
|
|
2,825
|
|
Amortization of
intangible assets
|
1,433
|
|
|
1,594
|
|
|
1,664
|
|
|
1,781
|
|
|
1,760
|
|
Real estate owned
expense
|
85
|
|
|
75
|
|
|
64
|
|
|
111
|
|
|
89
|
|
Merger, asset
disposition and restructuring expense
|
632
|
|
|
9
|
|
|
7,238
|
|
|
1,414
|
|
|
9,679
|
|
Other
expenses
|
1,422
|
|
|
3,354
|
|
|
3,728
|
|
|
27
|
|
|
7,866
|
|
Total noninterest
expense
|
86,332
|
|
|
86,191
|
|
|
92,849
|
|
|
86,869
|
|
|
89,163
|
|
Income/(loss) before
income taxes
|
64,105
|
|
|
51,840
|
|
|
44,392
|
|
|
46,517
|
|
|
(7,339)
|
|
Income tax
expense/(benefit)
|
15,138
|
|
|
11,603
|
|
|
9,327
|
|
|
8,467
|
|
|
(1,139)
|
|
Net
income/(loss)
|
$
|
48,967
|
|
|
40,237
|
|
|
35,065
|
|
|
38,050
|
|
|
(6,200)
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings/(loss)
per share
|
$
|
0.38
|
|
|
0.32
|
|
|
0.28
|
|
|
0.30
|
|
|
(0.05)
|
|
Diluted
earnings/(loss) per share
|
$
|
0.38
|
|
|
0.32
|
|
|
0.28
|
|
|
0.30
|
|
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average equity
|
12.58
|
%
|
|
10.61
|
%
|
|
9.00
|
%
|
|
9.82
|
%
|
|
(1.63)
|
%
|
Annualized return on
average assets
|
1.37
|
%
|
|
1.17
|
%
|
|
1.01
|
%
|
|
1.09
|
%
|
|
(0.18)
|
%
|
Annualized return on
tangible common equity *
|
16.66
|
%
|
|
14.31
|
%
|
|
12.27
|
%
|
|
13.28
|
%
|
|
(2.22)
|
%
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
**
|
67.35
|
%
|
|
63.88
|
%
|
|
62.18
|
%
|
|
59.68
|
%
|
|
58.19
|
%
|
Annualized
noninterest expense to average assets ***
|
2.35
|
%
|
|
2.45
|
%
|
|
2.42
|
%
|
|
2.39
|
%
|
|
2.30
|
%
|
|
|
*
|
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)
|
|
|
Six months ended
June 30,
|
|
2021
|
|
2020
|
Interest
income:
|
|
|
|
Loans
receivable
|
$
|
197,573
|
|
|
197,985
|
|
Mortgage-backed
securities
|
9,880
|
|
|
8,213
|
|
Taxable investment
securities
|
1,327
|
|
|
1,087
|
|
Tax-free investment
securities
|
1,169
|
|
|
749
|
|
FHLB stock
dividends
|
254
|
|
|
571
|
|
Interest-earning
deposits
|
375
|
|
|
320
|
|
Total interest
income
|
210,578
|
|
|
208,925
|
|
Interest
expense:
|
|
|
|
Deposits
|
10,287
|
|
|
20,739
|
|
Borrowed
funds
|
4,104
|
|
|
2,880
|
|
Total interest
expense
|
14,391
|
|
|
23,619
|
|
Net interest
income
|
196,187
|
|
|
185,306
|
|
Provision for credit
losses
|
(5,620)
|
|
|
79,387
|
|
Net interest income
after provision for credit losses
|
201,807
|
|
|
105,919
|
|
Noninterest
income:
|
|
|
|
Gain/(loss) on sale of
investments
|
(126)
|
|
|
173
|
|
Gain on sale of
loans
|
—
|
|
|
1,302
|
|
Service charges and
fees
|
25,138
|
|
|
28,185
|
|
Trust and other
financial services income
|
13,919
|
|
|
9,824
|
|
Insurance commission
income
|
3,589
|
|
|
4,767
|
|
Gain/(loss) on real
estate owned, net
|
124
|
|
|
(188)
|
|
Income from bank-owned
life insurance
|
3,375
|
|
|
2,284
|
|
Mortgage banking
income
|
9,831
|
|
|
13,216
|
|
Gain on sale of
insurance business
|
25,327
|
|
|
—
|
|
Other operating
income
|
5,484
|
|
|
3,909
|
|
Total noninterest
income
|
86,661
|
|
|
63,472
|
|
Noninterest
expense:
|
|
|
|
Compensation and
employee benefits
|
96,133
|
|
|
82,795
|
|
Premises and occupancy
costs
|
16,224
|
|
|
14,666
|
|
Office
operations
|
6,482
|
|
|
7,093
|
|
Collections
expense
|
919
|
|
|
1,118
|
|
Processing
expenses
|
28,607
|
|
|
22,822
|
|
Marketing
expenses
|
4,081
|
|
|
3,554
|
|
Federal deposit
insurance premiums
|
2,660
|
|
|
1,618
|
|
Professional
services
|
8,813
|
|
|
5,637
|
|
Amortization of
intangible assets
|
3,027
|
|
|
3,411
|
|
Real estate owned
expense
|
160
|
|
|
184
|
|
Merger, asset
disposition and restructuring expense
|
641
|
|
|
12,137
|
|
Other
expenses
|
4,776
|
|
|
12,739
|
|
Total noninterest
expense
|
172,523
|
|
|
167,774
|
|
Income before income
taxes
|
115,945
|
|
|
1,617
|
|
Income tax
expense/(benefit)
|
26,741
|
|
|
(122)
|
|
Net income
|
$
|
89,204
|
|
|
1,739
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.70
|
|
|
0.02
|
|
Diluted earnings per
share
|
$
|
0.70
|
|
|
0.02
|
|
|
|
|
|
Annualized return on
average equity
|
11.61
|
%
|
|
0.24
|
%
|
Annualized return on
average assets
|
1.27
|
%
|
|
0.03
|
%
|
Annualized return on
tangible common equity *
|
15.26
|
%
|
|
0.31
|
%
|
|
|
|
|
Efficiency ratio
**
|
65.57
|
%
|
|
61.19
|
%
|
Annualized
noninterest expense to average assets ***
|
2.40
|
%
|
|
2.53
|
%
|
|
|
*
|
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 June
30,
|
|
Six months ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating results
(non-GAAP):
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
95,729
|
|
|
98,078
|
|
|
196,187
|
|
|
185,306
|
|
Provision for credit
losses
|
—
|
|
|
12,279
|
|
|
(5,620)
|
|
|
16,203
|
|
Noninterest
income
|
29,381
|
|
|
35,496
|
|
|
61,334
|
|
|
63,472
|
|
Noninterest
expense
|
85,700
|
|
|
83,368
|
|
|
171,882
|
|
|
157,637
|
|
Income
taxes
|
8,224
|
|
|
11,535
|
|
|
19,829
|
|
|
20,408
|
|
Net operating income
(non-GAAP)
|
$
|
31,186
|
|
|
26,392
|
|
|
71,430
|
|
|
54,530
|
|
Diluted earnings per
share (non-GAAP)
|
$
|
0.24
|
|
|
0.22
|
|
|
0.56
|
|
|
0.48
|
|
|
|
|
|
|
|
|
|
Average
equity
|
$
|
1,560,959
|
|
|
1,528,868
|
|
|
1,549,755
|
|
|
1,439,489
|
|
Average
assets
|
14,356,759
|
|
|
13,590,131
|
|
|
14,173,278
|
|
|
12,093,801
|
|
Annualized return on
average equity (non-GAAP)
|
8.01
|
%
|
|
6.94
|
%
|
|
9.29
|
%
|
|
7.62
|
%
|
Annualized return on
average assets (non-GAAP)
|
0.87
|
%
|
|
0.78
|
%
|
|
1.02
|
%
|
|
0.91
|
%
|
|
|
|
|
|
|
|
|
Reconciliation of net
operating income to net income:
|
|
|
|
|
|
|
|
Net operating income
(non-GAAP)
|
$
|
31,186
|
|
|
26,392
|
|
|
71,430
|
|
|
54,530
|
|
Non-GAAP adjustments,
net of tax:
|
|
|
|
|
|
|
|
COVID-related
provision **
|
—
|
|
|
(15,330)
|
|
|
—
|
|
|
(32,404)
|
|
CECL provision impact
due to acquisition of MutualBank
|
—
|
|
|
(13,089)
|
|
|
—
|
|
|
(13,089)
|
|
Gain on sale of
insurance business
|
18,236
|
|
|
—
|
|
|
18,236
|
|
|
—
|
|
PPP deferred
origination costs
|
—
|
|
|
3,034
|
|
|
—
|
|
|
3,034
|
|
COVID-related off
balance sheet provision **
|
—
|
|
|
(238)
|
|
|
—
|
|
|
(1,594)
|
|
Merger/asset
disposition expense
|
(455)
|
|
|
(6,969)
|
|
|
(462)
|
|
|
(8,739)
|
|
Net income
(GAAP)
|
$
|
48,967
|
|
|
(6,200)
|
|
|
89,204
|
|
|
1,738
|
|
Diluted earnings per
share (GAAP)
|
$
|
0.38
|
|
|
(0.05)
|
|
|
0.70
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
Annualized return on
average equity (GAAP)
|
12.58
|
%
|
|
(1.63)
|
%
|
|
11.61
|
%
|
|
0.24
|
%
|
Annualized return on
average assets (GAAP)
|
1.37
|
%
|
|
(0.18)
|
%
|
|
1.27
|
%
|
|
0.03
|
%
|
|
|
*
|
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,
merger/asset disposition expense and prior period estimated
COVID-related provision, CECL provision related to the acquisition
of MutualBank, PPP deferred origination costs and estimated
COVID-related off balance sheet provision. 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 for the periods presented.
|
Northwest
Bancshares, Inc. and Subsidiaries
Asset Quality
(Unaudited)
(dollars in
thousands)
|
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December
31,
2020
|
|
September
30,
2020
|
|
June 30,
2020
|
Nonaccrual loans
current:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
189
|
|
|
164
|
|
|
21
|
|
|
1,128
|
|
|
413
|
|
Home equity
loans
|
170
|
|
|
268
|
|
|
154
|
|
|
366
|
|
|
481
|
|
Consumer
loans
|
188
|
|
|
225
|
|
|
207
|
|
|
234
|
|
|
214
|
|
Commercial real estate
loans
|
138,820
|
|
|
146,304
|
|
|
20,317
|
|
|
22,610
|
|
|
30,677
|
|
Commercial
loans
|
17,545
|
|
|
6,361
|
|
|
16,027
|
|
|
6,488
|
|
|
6,551
|
|
Total nonaccrual
loans current
|
$
|
156,912
|
|
|
153,322
|
|
|
36,726
|
|
|
30,826
|
|
|
38,336
|
|
Nonaccrual loans
delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
68
|
|
|
1,261
|
|
|
647
|
|
|
60
|
|
|
61
|
|
Home equity
loans
|
229
|
|
|
340
|
|
|
338
|
|
|
445
|
|
|
247
|
|
Consumer
loans
|
230
|
|
|
254
|
|
|
301
|
|
|
230
|
|
|
335
|
|
Commercial real estate
loans
|
1,589
|
|
|
965
|
|
|
1,416
|
|
|
692
|
|
|
2,372
|
|
Commercial
loans
|
406
|
|
|
1,538
|
|
|
87
|
|
|
57
|
|
|
—
|
|
Total nonaccrual
loans delinquent 30 days to 59 days
|
$
|
2,522
|
|
|
4,358
|
|
|
2,789
|
|
|
1,484
|
|
|
3,015
|
|
Nonaccrual loans
delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
207
|
|
|
813
|
|
|
767
|
|
|
576
|
|
|
1,013
|
|
Home equity
loans
|
310
|
|
|
417
|
|
|
190
|
|
|
618
|
|
|
960
|
|
Consumer
loans
|
297
|
|
|
649
|
|
|
583
|
|
|
781
|
|
|
666
|
|
Commercial real estate
loans
|
198
|
|
|
1,877
|
|
|
714
|
|
|
2,745
|
|
|
163
|
|
Commercial
loans
|
21
|
|
|
7,919
|
|
|
48
|
|
|
15
|
|
|
768
|
|
Total nonaccrual
loans delinquent 60 days to 89 days
|
$
|
1,033
|
|
|
11,675
|
|
|
2,302
|
|
|
4,735
|
|
|
3,570
|
|
Nonaccrual loans
delinquent 90 days or more:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
10,007
|
|
|
9,333
|
|
|
14,489
|
|
|
14,750
|
|
|
15,369
|
|
Home equity
loans
|
6,256
|
|
|
7,044
|
|
|
8,441
|
|
|
7,845
|
|
|
7,060
|
|
Consumer
loans
|
2,341
|
|
|
3,625
|
|
|
5,473
|
|
|
5,352
|
|
|
6,896
|
|
Commercial real estate
loans
|
23,564
|
|
|
29,737
|
|
|
25,287
|
|
|
35,496
|
|
|
29,729
|
|
Commercial
loans
|
4,126
|
|
|
4,860
|
|
|
7,325
|
|
|
6,310
|
|
|
11,535
|
|
Total nonaccrual
loans delinquent 90 days or more
|
$
|
46,294
|
|
|
54,599
|
|
|
61,015
|
|
|
69,753
|
|
|
70,589
|
|
Total nonaccrual
loans
|
$
|
206,761
|
|
|
223,954
|
|
|
102,832
|
|
|
106,798
|
|
|
115,510
|
|
Total nonaccrual
loans
|
$
|
206,761
|
|
|
223,954
|
|
|
102,832
|
|
|
106,798
|
|
|
115,510
|
|
Loans 90 days past
due and still accruing
|
302
|
|
|
197
|
|
|
585
|
|
|
495
|
|
|
77
|
|
Nonperforming
loans
|
207,063
|
|
|
224,151
|
|
|
103,417
|
|
|
107,293
|
|
|
115,587
|
|
Real estate owned,
net
|
1,353
|
|
|
1,738
|
|
|
2,232
|
|
|
2,575
|
|
|
1,897
|
|
Nonperforming
assets
|
$
|
208,416
|
|
|
225,889
|
|
|
105,649
|
|
|
109,868
|
|
|
117,484
|
|
Nonaccrual troubled
debt restructuring *
|
$
|
8,951
|
|
|
7,390
|
|
|
10,704
|
|
|
17,120
|
|
|
17,562
|
|
Accruing troubled
debt restructuring
|
18,480
|
|
|
20,120
|
|
|
21,431
|
|
|
17,684
|
|
|
17,888
|
|
Total troubled debt
restructuring
|
$
|
27,431
|
|
|
27,510
|
|
|
32,135
|
|
|
34,804
|
|
|
35,450
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
to total loans
|
2.01
|
%
|
|
2.16
|
%
|
|
0.98
|
%
|
|
1.00
|
%
|
|
1.06
|
%
|
Nonperforming assets
to total assets
|
1.46
|
%
|
|
1.58
|
%
|
|
0.77
|
%
|
|
0.80
|
%
|
|
0.85
|
%
|
Allowance for credit
losses to total loans
|
1.14
|
%
|
|
1.20
|
%
|
|
1.27
|
%
|
|
1.30
|
%
|
|
1.29
|
%
|
Allowance for total
loans excluding PPP loan balances
|
1.17
|
%
|
|
1.24
|
%
|
|
1.32
|
%
|
|
1.36
|
%
|
|
1.36
|
%
|
Allowance for credit
losses to nonperforming loans
|
56.66
|
%
|
|
55.32
|
%
|
|
129.99
|
%
|
|
130.68
|
%
|
|
121.63
|
%
|
|
* Amounts
included in nonperforming loans above.
|
Northwest
Bancshares, Inc. and Subsidiaries
Loans by Credit
Quality Indicators (Unaudited)
(dollars in
thousands)
|
|
At June 30,
2021
|
|
Pass
|
|
Special
mention *
|
|
Substandard
**
|
|
Doubtful
***
|
|
Loss
|
|
Loans
receivable
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
|
2,937,418
|
|
|
—
|
|
|
17,133
|
|
|
—
|
|
|
—
|
|
|
2,954,551
|
|
Home equity
loans
|
|
1,367,765
|
|
|
—
|
|
|
8,463
|
|
|
—
|
|
|
—
|
|
|
1,376,228
|
|
Consumer
loans
|
|
1,741,872
|
|
|
—
|
|
|
3,359
|
|
|
—
|
|
|
—
|
|
|
1,745,231
|
|
Total Personal
Banking
|
|
6,047,055
|
|
|
—
|
|
|
28,955
|
|
|
—
|
|
|
—
|
|
|
6,076,010
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,781,734
|
|
|
73,167
|
|
|
360,288
|
|
|
—
|
|
|
—
|
|
|
3,215,189
|
|
Commercial
loans
|
|
943,665
|
|
|
11,266
|
|
|
63,850
|
|
|
—
|
|
|
—
|
|
|
1,018,781
|
|
Total Commercial
Banking
|
|
3,725,399
|
|
|
84,433
|
|
|
424,138
|
|
|
—
|
|
|
—
|
|
|
4,233,970
|
|
Total
loans
|
|
$
|
9,772,454
|
|
|
84,433
|
|
|
453,093
|
|
|
—
|
|
|
—
|
|
|
10,309,980
|
|
At March 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
|
2,950,103
|
|
|
—
|
|
|
21,575
|
|
|
—
|
|
|
—
|
|
|
2,971,678
|
|
Home equity
loans
|
|
1,396,757
|
|
|
—
|
|
|
10,767
|
|
|
—
|
|
|
—
|
|
|
1,407,524
|
|
Consumer
loans
|
|
1,547,502
|
|
|
—
|
|
|
6,853
|
|
|
—
|
|
|
—
|
|
|
1,554,355
|
|
Total Personal
Banking
|
|
5,894,362
|
|
|
—
|
|
|
39,195
|
|
|
—
|
|
|
—
|
|
|
5,933,557
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,801,082
|
|
|
120,345
|
|
|
368,009
|
|
|
—
|
|
|
—
|
|
|
3,289,436
|
|
Commercial
loans
|
|
1,061,884
|
|
|
22,623
|
|
|
60,540
|
|
|
—
|
|
|
—
|
|
|
1,145,047
|
|
Total Commercial
Banking
|
|
3,862,966
|
|
|
142,968
|
|
|
428,549
|
|
|
—
|
|
|
—
|
|
|
4,434,483
|
|
Total
loans
|
|
$
|
9,757,328
|
|
|
142,968
|
|
|
467,744
|
|
|
—
|
|
|
—
|
|
|
10,368,040
|
|
At December 31,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
|
3,042,544
|
|
|
—
|
|
|
25,577
|
|
|
—
|
|
|
—
|
|
|
3,068,121
|
|
Home equity
loans
|
|
1,455,474
|
|
|
—
|
|
|
12,262
|
|
|
—
|
|
|
—
|
|
|
1,467,736
|
|
Consumer
loans
|
|
1,499,004
|
|
|
—
|
|
|
8,989
|
|
|
—
|
|
|
—
|
|
|
1,507,993
|
|
Total Personal
Banking
|
|
5,997,022
|
|
|
—
|
|
|
46,828
|
|
|
—
|
|
|
—
|
|
|
6,043,850
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,852,705
|
|
|
108,021
|
|
|
385,163
|
|
|
—
|
|
|
—
|
|
|
3,345,889
|
|
Commercial
loans
|
|
1,092,498
|
|
|
41,278
|
|
|
57,334
|
|
|
—
|
|
|
—
|
|
|
1,191,110
|
|
Total Commercial
Banking
|
|
3,945,203
|
|
|
149,299
|
|
|
442,497
|
|
|
—
|
|
|
—
|
|
|
4,536,999
|
|
Total
loans
|
|
$
|
9,942,225
|
|
|
149,299
|
|
|
489,325
|
|
|
—
|
|
|
—
|
|
|
10,580,849
|
|
At September 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
|
3,117,442
|
|
|
—
|
|
|
25,927
|
|
|
—
|
|
|
—
|
|
|
3,143,369
|
|
Home equity
loans
|
|
1,471,919
|
|
|
—
|
|
|
12,446
|
|
|
—
|
|
|
—
|
|
|
1,484,365
|
|
Consumer
loans
|
|
1,478,109
|
|
|
—
|
|
|
8,974
|
|
|
—
|
|
|
—
|
|
|
1,487,083
|
|
Total Personal
Banking
|
|
6,067,470
|
|
|
—
|
|
|
47,347
|
|
|
—
|
|
|
—
|
|
|
6,114,817
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,850,611
|
|
|
110,073
|
|
|
359,059
|
|
|
—
|
|
|
—
|
|
|
3,319,743
|
|
Commercial
loans
|
|
1,255,255
|
|
|
40,631
|
|
|
51,406
|
|
|
—
|
|
|
—
|
|
|
1,347,292
|
|
Total Commercial
Banking
|
|
4,105,866
|
|
|
150,704
|
|
|
410,465
|
|
|
—
|
|
|
—
|
|
|
4,667,035
|
|
Total
loans
|
|
$
|
10,173,336
|
|
|
150,704
|
|
|
457,812
|
|
|
—
|
|
|
—
|
|
|
10,781,852
|
|
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
|
|
|
|
*
|
Includes $16.7
million, $26.4 million, $31.3 million, $34.7 million, and $37.4
million of acquired loans at June 30, 2021, March 31,
2021, December 31, 2020, September 30, 2020, and June 30,
2020, respectively.
|
**
|
Includes $122.5
million, $143.2 million, $153.2 million, $129.2 million, and $108.2
million of acquired loans at June 30, 2021, March 31,
2021, December 31, 2020, September 30, 2020, and June 30,
2020, respectively.
|
***
|
Includes $1.1 million
of acquired loans at June 30, 2020.
|
Northwest
Bancshares, Inc. and Subsidiaries
Loan Delinquency
(Unaudited)
(dollars in
thousands)
|
|
|
June 30,
2021
|
|
*
|
|
March 31,
2021
|
|
*
|
|
December
31,
2020
|
|
*
|
|
September
30,
2020
|
|
*
|
|
June 30,
2020
|
|
*
|
(Number of loans and
dollar amount of loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 30
days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
13
|
|
|
$
|
606
|
|
|
—
|
%
|
|
248
|
|
|
$
|
22,236
|
|
|
0.7
|
%
|
|
315
|
|
|
$
|
28,797
|
|
|
0.9
|
%
|
|
17
|
|
|
$
|
736
|
|
|
—
|
%
|
|
15
|
|
|
$
|
629
|
|
|
—
|
%
|
Home equity
loans
|
91
|
|
|
3,677
|
|
|
0.3
|
%
|
|
84
|
|
|
3,334
|
|
|
0.2
|
%
|
|
138
|
|
|
4,763
|
|
|
0.3
|
%
|
|
129
|
|
|
4,984
|
|
|
0.3
|
%
|
|
118
|
|
|
4,569
|
|
|
0.3
|
%
|
Consumer
loans
|
532
|
|
|
5,571
|
|
|
0.3
|
%
|
|
535
|
|
|
5,732
|
|
|
0.4
|
%
|
|
1,279
|
|
|
10,574
|
|
|
0.7
|
%
|
|
1,078
|
|
|
8,586
|
|
|
0.6
|
%
|
|
629
|
|
|
7,199
|
|
|
0.5
|
%
|
Commercial real estate
loans
|
13
|
|
|
2,857
|
|
|
0.1
|
%
|
|
33
|
|
|
12,240
|
|
|
0.4
|
%
|
|
43
|
|
|
10,923
|
|
|
0.3
|
%
|
|
28
|
|
|
5,090
|
|
|
0.2
|
%
|
|
46
|
|
|
14,177
|
|
|
0.4
|
%
|
Commercial
loans
|
15
|
|
|
686
|
|
|
0.1
|
%
|
|
16
|
|
|
3,032
|
|
|
0.3
|
%
|
|
37
|
|
|
6,405
|
|
|
0.5
|
%
|
|
19
|
|
|
1,797
|
|
|
0.1
|
%
|
|
12
|
|
|
1,242
|
|
|
0.1
|
%
|
Total loans
delinquent 30 days to 59 days
|
664
|
|
|
$
|
13,397
|
|
|
0.1
|
%
|
|
916
|
|
|
$
|
46,574
|
|
|
0.4
|
%
|
|
1,812
|
|
|
$
|
61,462
|
|
|
0.6
|
%
|
|
1,271
|
|
|
$
|
21,193
|
|
|
0.2
|
%
|
|
820
|
|
|
$
|
27,816
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60
days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
58
|
|
|
$
|
4,051
|
|
|
0.1
|
%
|
|
26
|
|
|
$
|
2,062
|
|
|
0.1
|
%
|
|
84
|
|
|
$
|
5,083
|
|
|
0.2
|
%
|
|
65
|
|
|
$
|
4,788
|
|
|
0.2
|
%
|
|
64
|
|
|
$
|
5,364
|
|
|
0.2
|
%
|
Home equity
loans
|
36
|
|
|
1,502
|
|
|
0.1
|
%
|
|
31
|
|
|
953
|
|
|
0.1
|
%
|
|
47
|
|
|
1,656
|
|
|
0.1
|
%
|
|
56
|
|
|
1,860
|
|
|
0.1
|
%
|
|
59
|
|
|
2,326
|
|
|
0.2
|
%
|
Consumer
loans
|
181
|
|
|
1,988
|
|
|
0.1
|
%
|
|
169
|
|
|
1,868
|
|
|
0.1
|
%
|
|
322
|
|
|
2,742
|
|
|
0.2
|
%
|
|
323
|
|
|
3,049
|
|
|
0.2
|
%
|
|
258
|
|
|
2,916
|
|
|
0.2
|
%
|
Commercial real estate
loans
|
9
|
|
|
1,335
|
|
|
—
|
%
|
|
14
|
|
|
7,609
|
|
|
0.2
|
%
|
|
11
|
|
|
1,615
|
|
|
—
|
%
|
|
14
|
|
|
4,212
|
|
|
0.1
|
%
|
|
18
|
|
|
3,913
|
|
|
0.1
|
%
|
Commercial
loans
|
2
|
|
|
27
|
|
|
—
|
%
|
|
12
|
|
|
8,979
|
|
|
0.8
|
%
|
|
10
|
|
|
864
|
|
|
0.1
|
%
|
|
7
|
|
|
357
|
|
|
—
|
%
|
|
15
|
|
|
1,151
|
|
|
0.1
|
%
|
Total loans
delinquent 60 days to 89 days
|
286
|
|
|
$
|
8,903
|
|
|
0.1
|
%
|
|
252
|
|
|
$
|
21,471
|
|
|
0.2
|
%
|
|
474
|
|
|
$
|
11,960
|
|
|
0.1
|
%
|
|
465
|
|
|
$
|
14,266
|
|
|
0.1
|
%
|
|
414
|
|
|
$
|
15,670
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90
days or more: **
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
115
|
|
|
$
|
10,007
|
|
|
0.3
|
%
|
|
121
|
|
|
$
|
9,333
|
|
|
0.3
|
%
|
|
168
|
|
|
$
|
14,489
|
|
|
0.5
|
%
|
|
168
|
|
|
$
|
14,750
|
|
|
0.5
|
%
|
|
185
|
|
|
$
|
15,369
|
|
|
0.5
|
%
|
Home equity
loans
|
146
|
|
|
6,256
|
|
|
0.5
|
%
|
|
176
|
|
|
7,044
|
|
|
0.5
|
%
|
|
207
|
|
|
8,441
|
|
|
0.6
|
%
|
|
193
|
|
|
7,845
|
|
|
0.5
|
%
|
|
182
|
|
|
7,060
|
|
|
0.5
|
%
|
Consumer
loans
|
356
|
|
|
2,643
|
|
|
0.2
|
%
|
|
454
|
|
|
3,822
|
|
|
0.2
|
%
|
|
720
|
|
|
6,058
|
|
|
0.4
|
%
|
|
696
|
|
|
5,847
|
|
|
0.4
|
%
|
|
709
|
|
|
6,896
|
|
|
0.5
|
%
|
Commercial real estate
loans
|
83
|
|
|
23,564
|
|
|
0.7
|
%
|
|
113
|
|
|
29,737
|
|
|
0.9
|
%
|
|
119
|
|
|
25,287
|
|
|
0.8
|
%
|
|
136
|
|
|
35,496
|
|
|
1.1
|
%
|
|
149
|
|
|
29,729
|
|
|
0.9
|
%
|
Commercial
loans
|
18
|
|
|
4,126
|
|
|
0.4
|
%
|
|
31
|
|
|
4,860
|
|
|
0.4
|
%
|
|
37
|
|
|
7,325
|
|
|
0.6
|
%
|
|
34
|
|
|
6,310
|
|
|
0.5
|
%
|
|
47
|
|
|
11,535
|
|
|
0.8
|
%
|
Total loans
delinquent 90 days or more
|
718
|
|
|
$
|
46,596
|
|
|
0.5
|
%
|
|
895
|
|
|
$
|
54,796
|
|
|
0.5
|
%
|
|
1,251
|
|
|
$
|
61,600
|
|
|
0.6
|
%
|
|
1,227
|
|
|
$
|
70,248
|
|
|
0.7
|
%
|
|
1,272
|
|
|
$
|
70,589
|
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
delinquent
|
1,668
|
|
|
$
|
68,896
|
|
|
0.7
|
%
|
|
2,063
|
|
|
$
|
122,841
|
|
|
1.2
|
%
|
|
3,537
|
|
|
$
|
135,022
|
|
|
1.3
|
%
|
|
2,963
|
|
|
$
|
105,707
|
|
|
1.0
|
%
|
|
2,506
|
|
|
$
|
114,075
|
|
|
1.1
|
%
|
|
|
*
|
Represents
delinquency, in dollars, divided by the respective total amount of
that type of loan outstanding.
|
**
|
Includes purchased
credit deteriorated loans of $10.3 million, $12.7 million,
$6.6 million, $20.3 million, and $18.0 million at
June 30, 2021, March 31, 2021, December 31, 2020,
September 30, 2020, and June 30, 2020,
respectively.
|
Northwest
Bancshares, Inc. and Subsidiaries
Allowance for
Credit Losses (Unaudited)
(dollars in
thousands)
|
|
|
Quarter ended
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December
31,
2020
|
|
September
30,
2020
|
|
June 30,
2020
|
Beginning
balance
|
$
|
123,997
|
|
|
134,427
|
|
|
140,209
|
|
|
140,586
|
|
|
92,897
|
|
CECL
adoption
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Initial allowance on
loans purchased with credit deterioration
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,845
|
|
Provision
|
—
|
|
|
(5,620)
|
|
|
(2,230)
|
|
|
6,818
|
|
|
51,750
|
|
Charge-offs
residential mortgage
|
(770)
|
|
|
(855)
|
|
|
(407)
|
|
|
(129)
|
|
|
(38)
|
|
Charge-offs home
equity
|
(379)
|
|
|
(228)
|
|
|
(58)
|
|
|
(88)
|
|
|
(173)
|
|
Charge-offs
consumer
|
(2,401)
|
|
|
(2,603)
|
|
|
(2,623)
|
|
|
(3,356)
|
|
|
(3,191)
|
|
Charge-offs
commercial real estate
|
(3,964)
|
|
|
(4,626)
|
|
|
(2,770)
|
|
|
(532)
|
|
|
(690)
|
|
Charge-offs
commercial
|
(1,161)
|
|
|
(54)
|
|
|
(156)
|
|
|
(4,892)
|
|
|
(10,349)
|
|
Recoveries
|
2,008
|
|
|
3,556
|
|
|
2,462
|
|
|
1,802
|
|
|
1,535
|
|
Ending
balance
|
$
|
117,330
|
|
|
123,997
|
|
|
134,427
|
|
|
140,209
|
|
|
140,586
|
|
Net charge-offs to
average loans, annualized
|
0.26
|
%
|
|
0.19
|
%
|
|
0.13
|
%
|
|
0.27
|
%
|
|
0.51
|
%
|
|
|
Six months ended
June 30,
|
|
2021
|
|
2020
|
Beginning
balance
|
$
|
134,427
|
|
|
57,941
|
|
CECL
adoption
|
—
|
|
|
10,792
|
|
Initial allowance on
loans purchased with credit deterioration
|
—
|
|
|
8,845
|
|
Provision
|
(5,620)
|
|
|
79,387
|
|
Charge-offs
residential mortgage
|
(1,625)
|
|
|
(381)
|
|
Charge-offs home
equity
|
(607)
|
|
|
(462)
|
|
Charge-offs
consumer
|
(5,004)
|
|
|
(6,679)
|
|
Charge-offs
commercial real estate
|
(8,590)
|
|
|
(1,021)
|
|
Charge-offs
commercial
|
(1,215)
|
|
|
(11,164)
|
|
Recoveries
|
5,564
|
|
|
3,328
|
|
Ending
balance
|
$
|
117,330
|
|
|
140,586
|
|
Net charge-offs to
average loans, annualized
|
0.22
|
%
|
|
0.35
|
%
|
|
|
June 30,
2021
|
|
Originated
loans
|
|
Acquired
loans
|
|
Total
loans
|
|
Balance
|
|
Reserve
|
|
Balance
|
|
Reserve
|
|
Balance
|
|
Reserve
|
Residential mortgage
loans
|
$
|
2,701,046
|
|
|
6,316
|
|
|
253,505
|
|
|
931
|
|
|
2,954,551
|
|
|
7,247
|
|
Home equity
loans
|
1,127,884
|
|
|
5,264
|
|
|
248,344
|
|
|
1,975
|
|
|
1,376,228
|
|
|
7,239
|
|
Consumer
loans
|
1,565,344
|
|
|
13,667
|
|
|
179,887
|
|
|
2,022
|
|
|
1,745,231
|
|
|
15,689
|
|
Personal Banking
Loans
|
5,394,274
|
|
|
25,247
|
|
|
681,736
|
|
|
4,928
|
|
|
6,076,010
|
|
|
30,175
|
|
Commercial real
estate loans
|
2,585,259
|
|
|
54,473
|
|
|
629,930
|
|
|
14,837
|
|
|
3,215,189
|
|
|
69,310
|
|
Commercial
loans
|
899,035
|
|
|
10,655
|
|
|
119,746
|
|
|
7,190
|
|
|
1,018,781
|
|
|
17,845
|
|
Commercial Banking
Loans
|
3,484,294
|
|
|
65,128
|
|
|
749,676
|
|
|
22,027
|
|
|
4,233,970
|
|
|
87,155
|
|
Total
Loans
|
$
|
8,878,568
|
|
|
90,375
|
|
|
1,431,412
|
|
|
26,955
|
|
|
10,309,980
|
|
|
117,330
|
|
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
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
June 30,
2020
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
2,935,034
|
|
|
25,609
|
|
|
3.49
|
%
|
|
$
|
3,007,439
|
|
|
26,366
|
|
|
3.51
|
%
|
|
$
|
3,089,916
|
|
|
27,503
|
|
|
3.56
|
%
|
|
$
|
3,176,436
|
|
|
28,769
|
|
|
3.62
|
%
|
|
$
|
3,092,392
|
|
|
29,019
|
|
|
3.75
|
%
|
Home equity
loans
|
1,380,794
|
|
|
12,232
|
|
|
3.55
|
%
|
|
1,432,009
|
|
|
12,815
|
|
|
3.63
|
%
|
|
1,472,527
|
|
|
13,535
|
|
|
3.66
|
%
|
|
1,479,429
|
|
|
13,732
|
|
|
3.69
|
%
|
|
1,415,091
|
|
|
13,806
|
|
|
3.92
|
%
|
Consumer
loans
|
1,589,739
|
|
|
14,555
|
|
|
3.67
|
%
|
|
1,463,284
|
|
|
14,566
|
|
|
4.04
|
%
|
|
1,444,860
|
|
|
15,874
|
|
|
4.37
|
%
|
|
1,437,828
|
|
|
15,851
|
|
|
4.39
|
%
|
|
1,375,130
|
|
|
14,993
|
|
|
4.39
|
%
|
Commercial real estate
loans
|
3,257,810
|
|
|
33,349
|
|
|
4.05
|
%
|
|
3,313,892
|
|
|
38,471
|
|
|
4.64
|
%
|
|
3,317,418
|
|
|
37,965
|
|
|
4.48
|
%
|
|
3,306,386
|
|
|
36,887
|
|
|
4.37
|
%
|
|
3,156,749
|
|
|
34,595
|
|
|
4.34
|
%
|
Commercial
loans
|
1,133,969
|
|
|
9,978
|
|
|
3.48
|
%
|
|
1,189,812
|
|
|
10,566
|
|
|
3.55
|
%
|
|
1,325,047
|
|
|
11,414
|
|
|
3.37
|
%
|
|
1,377,223
|
|
|
12,603
|
|
|
3.58
|
%
|
|
1,161,228
|
|
|
11,269
|
|
|
3.84
|
%
|
Total loans receivable
(a) (b) (d)
|
10,297,346
|
|
|
95,723
|
|
|
3.73
|
%
|
|
10,406,436
|
|
|
102,784
|
|
|
4.01
|
%
|
|
10,649,768
|
|
|
106,291
|
|
|
3.97
|
%
|
|
10,777,302
|
|
|
107,842
|
|
|
3.98
|
%
|
|
10,200,590
|
|
|
103,682
|
|
|
4.09
|
%
|
Mortgage-backed
securities (c)
|
1,756,227
|
|
|
5,680
|
|
|
1.29
|
%
|
|
1,324,558
|
|
|
4,200
|
|
|
1.27
|
%
|
|
1,166,739
|
|
|
4,551
|
|
|
1.56
|
%
|
|
1,004,803
|
|
|
4,651
|
|
|
1.85
|
%
|
|
714,657
|
|
|
4,038
|
|
|
2.26
|
%
|
Investment securities
(c) (d)
|
364,414
|
|
|
1,466
|
|
|
1.61
|
%
|
|
331,358
|
|
|
1,381
|
|
|
1.67
|
%
|
|
252,898
|
|
|
1,380
|
|
|
2.18
|
%
|
|
216,081
|
|
|
1,336
|
|
|
2.47
|
%
|
|
170,309
|
|
|
1,244
|
|
|
2.92
|
%
|
FHLB stock, at
cost
|
23,107
|
|
|
138
|
|
|
2.40
|
%
|
|
21,811
|
|
|
116
|
|
|
2.17
|
%
|
|
23,346
|
|
|
192
|
|
|
3.27
|
%
|
|
25,595
|
|
|
218
|
|
|
3.39
|
%
|
|
22,192
|
|
|
309
|
|
|
5.60
|
%
|
Other interest-earning
deposits
|
810,741
|
|
|
192
|
|
|
0.09
|
%
|
|
801,119
|
|
|
183
|
|
|
0.09
|
%
|
|
632,494
|
|
|
178
|
|
|
0.11
|
%
|
|
791,601
|
|
|
221
|
|
|
0.11
|
%
|
|
623,870
|
|
|
185
|
|
|
0.12
|
%
|
Total
interest-earning assets
|
13,251,835
|
|
|
103,199
|
|
|
3.12
|
%
|
|
12,885,282
|
|
|
108,664
|
|
|
3.42
|
%
|
|
12,725,245
|
|
|
112,592
|
|
|
3.52
|
%
|
|
12,815,382
|
|
|
114,268
|
|
|
3.55
|
%
|
|
11,731,618
|
|
|
109,458
|
|
|
3.75
|
%
|
Noninterest-earning
assets (e)
|
1,104,924
|
|
|
|
|
|
|
1,102,477
|
|
|
|
|
|
|
1,066,609
|
|
|
|
|
|
|
1,088,273
|
|
|
|
|
|
|
1,858,513
|
|
|
|
|
|
Total
assets
|
$
|
14,356,759
|
|
|
|
|
|
|
$
|
13,987,759
|
|
|
|
|
|
|
$
|
13,791,854
|
|
|
|
|
|
|
$
|
13,903,655
|
|
|
|
|
|
|
$
|
13,590,131
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
deposits
|
$
|
2,255,578
|
|
|
590
|
|
|
0.10
|
%
|
|
$
|
2,118,030
|
|
|
625
|
|
|
0.12
|
%
|
|
$
|
2,028,155
|
|
|
617
|
|
|
0.12
|
%
|
|
$
|
2,015,604
|
|
|
648
|
|
|
0.13
|
%
|
|
$
|
1,884,202
|
|
|
648
|
|
|
0.14
|
%
|
Interest-bearing
demand deposits
|
2,840,949
|
|
|
407
|
|
|
0.06
|
%
|
|
2,783,429
|
|
|
429
|
|
|
0.06
|
%
|
|
2,699,515
|
|
|
476
|
|
|
0.07
|
%
|
|
2,680,591
|
|
|
763
|
|
|
0.11
|
%
|
|
2,428,060
|
|
|
812
|
|
|
0.13
|
%
|
Money market deposit
accounts
|
2,537,629
|
|
|
621
|
|
|
0.10
|
%
|
|
2,497,495
|
|
|
657
|
|
|
0.11
|
%
|
|
2,426,513
|
|
|
960
|
|
|
0.16
|
%
|
|
2,347,097
|
|
|
1,347
|
|
|
0.23
|
%
|
|
2,204,810
|
|
|
1,600
|
|
|
0.29
|
%
|
Time
deposits
|
1,493,947
|
|
|
3,155
|
|
|
0.85
|
%
|
|
1,583,525
|
|
|
3,803
|
|
|
0.97
|
%
|
|
1,676,094
|
|
|
4,660
|
|
|
1.11
|
%
|
|
1,782,350
|
|
|
5,685
|
|
|
1.27
|
%
|
|
1,761,260
|
|
|
6,276
|
|
|
1.43
|
%
|
Borrowed funds
(f)
|
254,683
|
|
|
1,414
|
|
|
2.23
|
%
|
|
267,163
|
|
|
1,412
|
|
|
2.14
|
%
|
|
352,392
|
|
|
1,469
|
|
|
1.66
|
%
|
|
420,715
|
|
|
717
|
|
|
0.68
|
%
|
|
371,700
|
|
|
296
|
|
|
0.32
|
%
|
Junior subordinated
debentures
|
128,882
|
|
|
636
|
|
|
1.95
|
%
|
|
128,817
|
|
|
642
|
|
|
1.99
|
%
|
|
128,752
|
|
|
659
|
|
|
2.00
|
%
|
|
128,658
|
|
|
720
|
|
|
2.19
|
%
|
|
127,472
|
|
|
837
|
|
|
2.60
|
%
|
Total
interest-bearing liabilities
|
9,511,668
|
|
|
6,823
|
|
|
0.29
|
%
|
|
9,378,459
|
|
|
7,568
|
|
|
0.33
|
%
|
|
9,311,421
|
|
|
8,841
|
|
|
0.38
|
%
|
|
9,375,015
|
|
|
9,880
|
|
|
0.42
|
%
|
|
8,777,504
|
|
|
10,469
|
|
|
0.48
|
%
|
Noninterest-bearing
demand deposits (g)
|
3,036,202
|
|
|
|
|
|
|
2,805,206
|
|
|
|
|
|
|
2,675,986
|
|
|
|
|
|
|
2,703,266
|
|
|
|
|
|
|
2,401,368
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
247,930
|
|
|
|
|
|
|
265,667
|
|
|
|
|
|
|
253,966
|
|
|
|
|
|
|
284,440
|
|
|
|
|
|
|
882,391
|
|
|
|
|
|
Total
liabilities
|
12,795,800
|
|
|
|
|
|
|
12,449,332
|
|
|
|
|
|
|
12,241,373
|
|
|
|
|
|
|
12,362,721
|
|
|
|
|
|
|
12,061,263
|
|
|
|
|
|
Shareholders'
equity
|
1,560,959
|
|
|
|
|
|
|
1,538,427
|
|
|
|
|
|
|
1,550,481
|
|
|
|
|
|
|
1,540,934
|
|
|
|
|
|
|
1,528,868
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
14,356,759
|
|
|
|
|
|
|
$
|
13,987,759
|
|
|
|
|
|
|
$
|
13,791,854
|
|
|
|
|
|
|
$
|
13,903,655
|
|
|
|
|
|
|
$
|
13,590,131
|
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
96,376
|
|
|
2.84
|
%
|
|
|
|
101,096
|
|
|
3.09
|
%
|
|
|
|
103,751
|
|
|
3.14
|
%
|
|
|
|
104,388
|
|
|
3.13
|
%
|
|
|
|
98,989
|
|
|
3.27
|
%
|
Net interest-earning
assets/Net interest margin
|
$
|
3,740,167
|
|
|
|
|
2.91
|
%
|
|
$
|
3,506,823
|
|
|
|
|
3.18
|
%
|
|
$
|
3,413,824
|
|
|
|
|
3.26
|
%
|
|
$
|
3,440,367
|
|
|
|
|
3.26
|
%
|
|
$
|
2,954,114
|
|
|
|
|
3.38
|
%
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.39X
|
|
|
|
|
|
|
1.37X
|
|
|
|
|
|
|
1.37X
|
|
|
|
|
|
|
1.37X
|
|
|
|
|
|
|
1.34X
|
|
|
|
|
|
|
|
(a)
|
Average gross loans
receivable includes loans held as available-for-sale and loans
placed on nonaccrual status.
|
(b)
|
Interest income
includes accretion/amortization of deferred loan fees/expenses,
which 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 0.16%, 0.19%, 0.23%, 0.29%, and 0.35%,
respectively.
|
(h)
|
Shown on a FTE basis.
GAAP basis yields for the periods indicated were: Loans - 3.71%,
3.99%, 3.94%, 3.96%, and 4.06%, respectively, Investment
securities - 1.41%, 1.46%, 1.78%, 2.00%, and 2.36%,
respectively, Interest-earning assets - 3.10%, 3.40%,
3.48%, 3.52%, and 3.72%, respectively. GAAP basis net interest rate
spreads were 2.82%, 3.07%, 3.11%, 3.10%, and 3.24%, respectively,
and GAAP basis net interest margins were 2.89%, 3.16%, 3.23%,
3.23%, and 3.34%, 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.
|
|
|
Six months ended
June 30,
|
|
2021
|
|
2020
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
2,971,037
|
|
|
51,975
|
|
|
3.50
|
%
|
|
$
|
2,969,096
|
|
|
57,081
|
|
|
3.85
|
%
|
Home equity
loans
|
1,406,260
|
|
|
25,046
|
|
|
3.57
|
%
|
|
1,380,076
|
|
|
28,607
|
|
|
4.17
|
%
|
Consumer
loans
|
1,526,861
|
|
|
29,121
|
|
|
3.82
|
%
|
|
1,249,233
|
|
|
27,153
|
|
|
4.37
|
%
|
Commercial real estate
loans
|
3,285,696
|
|
|
71,820
|
|
|
4.32
|
%
|
|
2,952,084
|
|
|
66,032
|
|
|
4.42
|
%
|
Commercial
loans
|
1,161,736
|
|
|
20,543
|
|
|
3.50
|
%
|
|
936,924
|
|
|
20,124
|
|
|
4.25
|
%
|
Loans receivable
(a) (b) (d)
|
10,351,590
|
|
|
198,505
|
|
|
3.85
|
%
|
|
9,487,413
|
|
|
198,997
|
|
|
4.22
|
%
|
Mortgage-backed
securities (c)
|
1,541,585
|
|
|
9,880
|
|
|
1.28
|
%
|
|
691,564
|
|
|
8,213
|
|
|
2.38
|
%
|
Investment securities
(c) (d)
|
347,977
|
|
|
2,847
|
|
|
1.64
|
%
|
|
157,231
|
|
|
2,125
|
|
|
2.70
|
%
|
FHLB stock, at
cost
|
22,462
|
|
|
254
|
|
|
2.27
|
%
|
|
19,062
|
|
|
571
|
|
|
6.02
|
%
|
Other interest-earning
deposits
|
805,930
|
|
|
375
|
|
|
0.09
|
%
|
|
329,284
|
|
|
320
|
|
|
0.19
|
%
|
Total
interest-earning assets
|
13,069,544
|
|
|
211,861
|
|
|
3.25
|
%
|
|
10,684,554
|
|
|
210,226
|
|
|
3.96
|
%
|
Noninterest-earning
assets (e)
|
1,103,734
|
|
|
|
|
|
|
1,409,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
14,173,278
|
|
|
|
|
|
|
$
|
12,093,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings
deposits
|
$
|
2,187,184
|
|
|
1,215
|
|
|
0.11
|
%
|
|
$
|
1,747,656
|
|
|
1,375
|
|
|
0.16
|
%
|
Interest-bearing
demand deposits
|
2,812,348
|
|
|
836
|
|
|
0.06
|
%
|
|
2,171,970
|
|
|
2,119
|
|
|
0.20
|
%
|
Money market deposit
accounts
|
2,517,673
|
|
|
1,278
|
|
|
0.10
|
%
|
|
2,061,226
|
|
|
4,688
|
|
|
0.46
|
%
|
Time
deposits
|
1,538,489
|
|
|
6,959
|
|
|
0.91
|
%
|
|
1,645,077
|
|
|
12,557
|
|
|
1.54
|
%
|
Borrowed funds
(f)
|
260,888
|
|
|
2,825
|
|
|
2.17
|
%
|
|
305,910
|
|
|
1,005
|
|
|
0.66
|
%
|
Junior subordinated
debentures
|
128,850
|
|
|
1,278
|
|
|
1.96
|
%
|
|
124,638
|
|
|
1,875
|
|
|
2.98
|
%
|
Total
interest-bearing liabilities
|
9,445,432
|
|
|
14,391
|
|
|
0.31
|
%
|
|
8,056,477
|
|
|
23,619
|
|
|
0.59
|
%
|
Noninterest-bearing
demand deposits (g)
|
2,921,343
|
|
|
|
|
|
|
2,022,177
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
256,748
|
|
|
|
|
|
|
575,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
12,623,523
|
|
|
|
|
|
|
10,654,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
1,549,755
|
|
|
|
|
|
|
1,439,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
14,173,278
|
|
|
|
|
|
|
$
|
12,093,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
197,470
|
|
|
2.94
|
%
|
|
|
|
186,607
|
|
|
3.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets/Net interest margin
|
$
|
3,624,112
|
|
|
|
|
3.02
|
%
|
|
$
|
2,628,077
|
|
|
|
|
3.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.38X
|
|
|
|
|
|
|
1.33X
|
|
|
|
|
|
|
|
(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, collateralized borrowings and subordinated
debt.
|
(g)
|
Average cost of
deposits were 0.17% and 0.43%, respectively.
|
(h)
|
Shown on a FTE basis.
GAAP basis yields were: Loans — 3.83% and 4.20%, respectively;
Investment securities — 1.43% and 2.34%, respectively;
Interest-earning assets — 3.23% and 3.93%, respectively. GAAP
basis net interest rate spreads were 2.92% and 3.34%, respectively;
and GAAP basis net interest margins were 3.00% and 3.47%,
respectively.
|
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SOURCE Northwest Bancshares, Inc.