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| 8-K - 8-K - Northwest Bancshares, Inc. | a03-31x168kcover.htm |
EXHIBIT 99.1
PRESS RELEASE OF NORTHWEST BANCSHARES, INC.
EARNINGS RELEASE
FOR IMMEDIATE RELEASE
Contact: | William J. Wagner, President and Chief Executive Officer (814) 726-2140 |
William W. Harvey, Jr., Senior Executive Vice President and Chief Financial Officer (814) 726-2140 | |
Northwest Bancshares, Inc. Announces First Quarter 2016 Earnings and Quarterly Dividend
Warren, Pennsylvania — April 22, 2016
Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2016 of $18.0 million, or $0.18 per diluted share. This represents an increase of $1.8 million, or 11.2%, compared to the same quarter last year when net income was $16.2 million, or $0.18 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended March 31, 2016 were 6.21% and 0.81% compared to 6.17% and 0.83% for the same quarter last year.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.15 per share payable on May 16, 2016, to shareholders of record as of May 2, 2016. This represents the 86th consecutive quarter in which the Company has paid a cash dividend. Based on the current market value of the Company's stock, this represents an annualized dividend yield of 4.4%.
In making this announcement, William J. Wagner, President and CEO, noted, “We are pleased that our first quarter operating results reflect the positive impact of the LNB acquisition, which significantly increased both net interest income and noninterest income. Although we believe we have realized the cost savings originally projected for this transaction, expenses grew at an elevated rate as we continue to add the personnel, processes, and technology necessary to meet the requirements of a $9.0 billion bank. Operating efficiency remains a central focus and we look forward to the completion of our previously announced branch consolidation plan, which will positively impact expense ratios beginning in the second quarter of this year. We are also pleased that loans increased for the quarter by $70.0 million, or 3.9% on an annual basis, as our recently established corporate finance group gained momentum and greatly assisted with that effort.”
Net interest income increased by $8.6 million, or 13.6%, to $71.6 million for the quarter ended March 31, 2016, from $63.0 million for the quarter ended March 31, 2015. This increase is due primarily to a $10.1 million, or 14.2%, increase in interest income on loans as a result of a $1.229 billion increase in the company’s loan portfolio. Contributing significantly to this increase was the acquisition of Lorain National Bank ("LNB") on August 14, 2015, which included loans of $928.0 million. Also contributing to the increase in net interest income was a $475,000 decrease in interest expense on borrowed funds due primarily to the maturity of FHLB term advances. Partially offsetting these improvements was a $936,000 decrease in FHLB dividends as the company received a $1.0 million special dividend in the first quarter of 2015. The interest paid on deposits increased by $322,000 as deposit balances were $988.0 million, or 17.4%, higher than they were in the previous year, primarily due to the LNB acquisition. As a result of these changes, net interest margin increased to 3.57% for the quarter ended March 31, 2016 from 3.51% for the same quarter last year and 3.53% for the quarter ended December 31, 2015.
The provision for loan losses increased by $760,000, or 84.4%, to $1.7 million for the quarter ended March 31, 2016, from $900,000 for the quarter ended March 31, 2015. Loss provisions remain at low levels as asset quality continues to improve. The percentage of nonperforming loans to total loans decreased to 1.03% at March 31, 2016 from 1.21% at March 31, 2015 and classified loans decreased by $4.6 million, or 2.3%, to $196.7 million at March 31, 2016 from $201.3 million at March 31, 2015.
Noninterest income increased by $4.8 million, or 33.0%, to $19.4 million for the quarter ended March 31, 2016, from $14.6 million for the quarter ended March 31, 2015. Contributing to this increase was an increase in service charges and fees of $1.4 million, or 16.2%, which is attributable to the growth in checking accounts from both the LNB acquisition and the successful execution of internal growth initiatives. Also contributing to the increase in noninterest income was an increase in gain on sale of real estate owned of $1.3 million, as the Company recognized a net gain of $249,000 for the quarter ended March 31, 2016 compared to a net loss of $1.0 million for the same quarter last year. Additionally, trust and other financial services income and insurance commission income increased by $485,000 and $286,000, respectively, for the quarter ended March 31, 2016 compared to the same quarter last year.
Noninterest expense increased by $9.6 million, or 17.8%, to $63.3 million for the quarter ended March 31, 2016, from $53.7 million for the quarter ended March 31, 2015. This increase resulted primarily from an increase in compensation and employee benefits of $5.1 million, or 18.4%, due primarily to the addition of lending and credit talent and the employees retained from the LNB acquisition. Other expenses increased by $2.1 million, or 92.1% due primarily to an increase in charitable contributions made to utilize Pennsylvania Education Improvement Tax Credits (EITC). The offsetting tax credit for these contributions will be recognized as part of the annual effective tax rate. Also contributing to the increase in noninterest expense was an increase in processing expenses of $1.2 million, or 16.8%, due primarily to the acquisition of LNB, upgrades to technology and the replacement of debit cards in an effort to enhance customer security.
Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. Northwest operates 176 full-service community banking offices and five free standing drive-up facilities in Pennsylvania, New York, Ohio and Maryland and 51 consumer finance offices in Pennsylvania through its subsidiary, Northwest Consumer Discount Company. 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; and (7) increased risk associated with commercial real-estate and business loans. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(Dollars in thousands, except per share amounts)
March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||
Assets | |||||||||
Cash and cash equivalents | $ | 86,151 | 92,263 | 83,970 | |||||
Interest-earning deposits in other financial institutions | 74,850 | 74,510 | 212,496 | ||||||
Federal funds sold and other short-term investments | 2,320 | 635 | 635 | ||||||
Marketable securities available-for-sale (amortized cost of $772,768, $868,956 and $906,028, respectively) | 783,940 | 874,405 | 916,423 | ||||||
Marketable securities held-to-maturity (fair value of $28,611, $32,552 and $92,989, respectively) | 27,764 | 31,689 | 90,825 | ||||||
Total cash, interest-earning deposits and marketable securities | 975,025 | 1,073,502 | 1,304,349 | ||||||
Residential mortgage loans held for sale | 8,952 | — | — | ||||||
Residential mortgage loans | 2,761,411 | 2,750,564 | 2,543,870 | ||||||
Home equity loans | 1,169,821 | 1,187,106 | 1,055,739 | ||||||
Consumer loans | 525,537 | 510,617 | 239,956 | ||||||
Commercial real estate loans | 2,360,863 | 2,351,434 | 1,856,574 | ||||||
Commercial loans | 467,418 | 422,400 | 368,725 | ||||||
Total loans receivable | 7,294,002 | 7,222,121 | 6,064,864 | ||||||
Allowance for loan losses | (62,278 | ) | (62,672 | ) | (67,298 | ) | |||
Loans receivable, net | 7,231,724 | 7,159,449 | 5,997,566 | ||||||
Federal Home Loan Bank stock, at cost | 35,539 | 40,903 | 36,292 | ||||||
Accrued interest receivable | 21,712 | 21,072 | 19,753 | ||||||
Real estate owned, net | 6,834 | 8,725 | 15,346 | ||||||
Premises and Equipment, net | 153,000 | 154,351 | 142,481 | ||||||
Bank owned life insurance | 168,511 | 168,509 | 145,275 | ||||||
Goodwill | 261,736 | 261,736 | 175,498 | ||||||
Other intangible assets | 8,398 | 8,982 | 3,027 | ||||||
Other assets | 53,809 | 54,670 | 50,772 | ||||||
Total assets | $ | 8,916,288 | 8,951,899 | 7,890,359 | |||||
Liabilities and Shareholders’ equity | |||||||||
Liabilities | |||||||||
Noninterest-bearing demand deposits | $ | 1,179,950 | 1,177,256 | 944,937 | |||||
Interest-bearing demand deposits | 1,121,779 | 1,080,086 | 898,945 | ||||||
Money market deposit accounts | 1,295,138 | 1,274,504 | 1,151,971 | ||||||
Savings deposits | 1,433,788 | 1,386,017 | 1,257,446 | ||||||
Time deposits | 1,639,406 | 1,694,718 | 1,428,768 | ||||||
Total deposits | 6,670,061 | 6,612,581 | 5,682,067 | ||||||
Borrowed funds | 857,754 | 975,007 | 943,842 | ||||||
Advances by borrowers for taxes and insurance | 38,719 | 33,735 | 34,998 | ||||||
Accrued interest payable | 1,894 | 1,993 | 1,336 | ||||||
Other liabilities | 66,059 | 54,207 | 57,506 | ||||||
Junior subordinated debentures | 111,213 | 111,213 | 103,094 | ||||||
Total liabilities | 7,745,700 | 7,788,736 | 6,822,843 | ||||||
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, 101,848,509 shares, 101,871,737 shares and 94,553,350 issued and outstanding, respectively | 1,018 | 1,019 | 946 | ||||||
Paid-in-capital | 718,027 | 717,603 | 624,584 | ||||||
Retained earnings | 492,316 | 489,292 | 484,774 | ||||||
Unallocated common stock of Employee Stock Ownership Plan | (19,815 | ) | (20,216 | ) | (21,565 | ) | |||
Accumulated other comprehensive loss | (20,958 | ) | (24,535 | ) | (21,223 | ) | |||
Total shareholders’ equity | 1,170,588 | 1,163,163 | 1,067,516 | ||||||
Total liabilities and shareholders’ equity | $ | 8,916,288 | 8,951,899 | 7,890,359 | |||||
Equity to assets | 13.13 | % | 12.99 | % | 13.53 | % | |||
Tangible common equity to assets | 10.41 | % | 10.28 | % | 11.53 | % | |||
Book value per share | $ | 11.49 | 11.42 | 11.29 | |||||
Tangible book value per share | $ | 8.84 | 8.76 | 9.40 | |||||
Closing market price per share | $ | 13.51 | 13.39 | 11.85 | |||||
Full time equivalent employees | 2,152 | 2,186 | 2,041 | ||||||
Number of banking offices | 181 | 181 | 161 | ||||||
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
Quarter ended | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | |||||||||||
Interest income: | |||||||||||||||
Loans receivable | $ | 80,781 | 80,882 | 76,087 | 70,985 | 70,711 | |||||||||
Mortgage-backed securities | 2,229 | 2,301 | 2,230 | 2,058 | 2,234 | ||||||||||
Taxable investment securities | 1,038 | 1,108 | 1,689 | 1,129 | 1,045 | ||||||||||
Tax-free investment securities | 724 | 836 | 986 | 1,143 | 1,348 | ||||||||||
FHLB dividends | 467 | 499 | 451 | 475 | 1,403 | ||||||||||
Interest-earning deposits | 59 | 13 | 99 | 180 | 139 | ||||||||||
Total interest income | 85,298 | 85,639 | 81,542 | 75,970 | 76,880 | ||||||||||
Interest expense: | |||||||||||||||
Deposits | 6,088 | 6,435 | 6,163 | 5,691 | 5,766 | ||||||||||
Borrowed funds | 7,658 | 8,051 | 7,987 | 8,101 | 8,133 | ||||||||||
Total interest expense | 13,746 | 14,486 | 14,150 | 13,792 | 13,899 | ||||||||||
Net interest income | 71,552 | 71,153 | 67,392 | 62,178 | 62,981 | ||||||||||
Provision for loan losses | 1,660 | 4,595 | 3,167 | 1,050 | 900 | ||||||||||
Net interest income after provision for loan losses | 69,892 | 66,558 | 64,225 | 61,128 | 62,081 | ||||||||||
Noninterest income: | |||||||||||||||
Gain on sale of investments | 127 | 116 | 260 | 566 | 95 | ||||||||||
Service charges and fees | 10,065 | 10,530 | 9,945 | 9,228 | 8,659 | ||||||||||
Trust and other financial services income | 3,261 | 3,410 | 3,062 | 3,094 | 2,776 | ||||||||||
Insurance commission income | 2,714 | 2,490 | 2,398 | 2,210 | 2,428 | ||||||||||
Gain/ loss on real estate owned, net | 249 | (156 | ) | (246 | ) | (541 | ) | (1,046 | ) | ||||||
Income from bank owned life insurance | 1,595 | 1,251 | 1,166 | 1,008 | 913 | ||||||||||
Mortgage banking income | 218 | 208 | 267 | 218 | 240 | ||||||||||
Other operating income | 1,219 | 1,697 | 837 | 742 | 560 | ||||||||||
Total noninterest income | 19,448 | 19,546 | 17,689 | 16,525 | 14,625 | ||||||||||
Noninterest expense: | |||||||||||||||
Compensation and employee benefits | 33,033 | 32,003 | 31,000 | 28,920 | 27,895 | ||||||||||
Premises and occupancy costs | 6,537 | 6,403 | 6,072 | 5,899 | 6,267 | ||||||||||
Office operations | 3,460 | 3,252 | 3,268 | 2,905 | 2,912 | ||||||||||
Collections expense | 676 | 1,252 | 624 | 603 | 768 | ||||||||||
Processing expenses | 8,414 | 8,057 | 8,126 | 7,392 | 7,205 | ||||||||||
Marketing expenses | 1,891 | 1,642 | 1,691 | 3,190 | 1,976 | ||||||||||
Federal deposit insurance premiums | 1,503 | 1,299 | 1,177 | 1,286 | 1,347 | ||||||||||
Professional services | 1,833 | 1,933 | 1,529 | 1,652 | 1,792 | ||||||||||
Amortization of intangible assets | 675 | 729 | 422 | 269 | 268 | ||||||||||
Real estate owned expense | 311 | 393 | 471 | 514 | 692 | ||||||||||
Restructuring/ acquisition expense | 635 | 1,347 | 7,590 | 467 | 347 | ||||||||||
Other expense | 4,307 | 2,917 | 1,834 | 2,038 | 2,242 | ||||||||||
Total noninterest expense | 63,275 | 61,227 | 63,804 | 55,135 | 53,711 | ||||||||||
Income before income taxes | 26,065 | 24,877 | 18,110 | 22,518 | 22,995 | ||||||||||
Income tax expense | 8,081 | 8,684 | 5,238 | 7,213 | 6,825 | ||||||||||
Net income | $ | 17,984 | 16,193 | 12,872 | 15,305 | 16,170 | |||||||||
Basic earnings per share | $ | 0.18 | 0.16 | 0.14 | 0.17 | 0.18 | |||||||||
Diluted earnings per share | $ | 0.18 | 0.16 | 0.13 | 0.17 | 0.18 | |||||||||
Weighted average common shares outstanding - basic | 98,889,744 | 98,741,393 | 95,256,807 | 91,538,172 | 91,634,064 | ||||||||||
Weighted average common shares outstanding - diluted | 99,380,009 | 99,500,056 | 95,825,798 | 91,998,005 | 91,902,071 | ||||||||||
Annualized return on average equity | 6.21 | % | 5.83 | % | 4.54 | % | 5.77 | % | 6.17 | % | |||||
Annualized return on average assets | 0.81 | % | 0.77 | % | 0.59 | % | 0.78 | % | 0.83 | % | |||||
Annualized return on tangible common equity | 8.03 | % | 7.20 | % | 5.72 | % | 6.90 | % | 7.38 | % | |||||
Efficiency ratio * | 68.09 | % | 65.22 | % | 65.58 | % | 69.12 | % | 68.42 | % | |||||
Annualized noninterest expense to average assets * | 2.80 | % | 2.63 | % | 2.57 | % | 2.77 | % | 2.73 | % | |||||
* - Excludes restructuring/acquisition expenses and amortization of intangible assets.
Northwest Bancshares, Inc. and Subsidiaries
Asset quality
(Dollars in thousands)
March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||
Nonaccrual loans current: | |||||||||||||||
Residential mortgage loans | $ | 1,678 | 1,393 | 1,900 | 1,655 | 1,322 | |||||||||
Home equity loans | 1,118 | 1,108 | 1,471 | 1,345 | 1,910 | ||||||||||
Consumer loans | 190 | 140 | 251 | 171 | 114 | ||||||||||
Commercial real estate loans | 19,350 | 14,018 | 19,602 | 8,596 | 18,465 | ||||||||||
Commercial loans | 5,923 | 4,604 | 4,877 | 5,096 | 9,429 | ||||||||||
Total nonaccrual loans current | $ | 28,259 | 21,263 | 28,101 | 16,863 | 31,240 | |||||||||
Nonaccrual loans delinquent 30 days to 59 days: | |||||||||||||||
Residential mortgage loans | $ | 1,600 | 430 | — | — | 951 | |||||||||
Home equity loans | 119 | 375 | 392 | 49 | 380 | ||||||||||
Consumer loans | 164 | 97 | 155 | 77 | 92 | ||||||||||
Commercial real estate loans | 3,371 | 2,192 | 359 | 867 | 3,907 | ||||||||||
Commercial loans | 4 | 322 | 131 | 186 | 144 | ||||||||||
Total nonaccrual loans delinquent 30 days to 59 days | $ | 5,258 | 3,416 | 1,037 | 1,179 | 5,474 | |||||||||
Nonaccrual loans delinquent 60 days to 89 days: | |||||||||||||||
Residential mortgage loans | $ | 721 | 2,139 | 1,097 | 1,197 | 1,892 | |||||||||
Home equity loans | 504 | 389 | 260 | 472 | 507 | ||||||||||
Consumer loans | 182 | 315 | 156 | 191 | 129 | ||||||||||
Commercial real estate loans | 109 | 762 | 416 | 504 | 1,045 | ||||||||||
Commercial loans | 57 | 110 | 11 | 119 | 107 | ||||||||||
Total nonaccrual loans delinquent 60 days to 89 days | $ | 1,573 | 3,715 | 1,940 | 2,483 | 3,680 | |||||||||
Nonaccrual loans delinquent 90 days or more: | |||||||||||||||
Residential mortgage loans | $ | 14,301 | 15,810 | 16,510 | 16,125 | 15,068 | |||||||||
Home equity loans | 5,922 | 5,650 | 4,546 | 4,616 | 5,646 | ||||||||||
Consumer loans | 2,360 | 2,900 | 3,132 | 2,199 | 2,045 | ||||||||||
Commercial real estate loans | 13,165 | 16,449 | 10,565 | 12,673 | 8,233 | ||||||||||
Commercial loans | 3,314 | 2,459 | 2,074 | 1,858 | 1,921 | ||||||||||
Total nonaccrual loans delinquent 90 days or more | $ | 39,062 | 43,268 | 36,827 | 37,471 | 32,913 | |||||||||
Total nonaccrual loans | $ | 74,152 | 71,662 | 67,905 | 57,996 | 73,307 | |||||||||
Total nonaccrual loans | $ | 74,152 | 71,662 | 67,905 | 57,996 | 73,307 | |||||||||
Loans 90 days past maturity and still accruing | 894 | 1,334 | 680 | 385 | 310 | ||||||||||
Nonperforming loans | 75,046 | 72,996 | 68,585 | 58,381 | 73,617 | ||||||||||
Real estate owned, net | 6,834 | 8,725 | 10,391 | 13,864 | 15,346 | ||||||||||
Nonperforming assets | $ | 81,880 | 81,721 | 78,976 | 72,245 | 88,963 | |||||||||
Nonaccrual troubled debt restructuring * | $ | 17,699 | 21,118 | 23,184 | 15,443 | 19,843 | |||||||||
Accruing troubled debt restructuring | 30,549 | 29,997 | 26,154 | 40,741 | 40,802 | ||||||||||
Total troubled debt restructuring | $ | 48,248 | 51,115 | 49,338 | 56,184 | 60,645 | |||||||||
Nonperforming loans to total loans | 1.03 | % | 1.01 | % | 0.96 | % | 0.95 | % | 1.21 | % | |||||
Nonperforming assets to total assets | 0.92 | % | 0.91 | % | 0.88 | % | 0.92 | % | 1.13 | % | |||||
Allowance for loan losses to total loans | 0.85 | % | 0.87 | % | 0.85 | % | 0.96 | % | 1.11 | % | |||||
Allowance for loan losses to nonperforming loans | 82.99 | % | 85.86 | % | 94.54 | % | 101.16 | % | 91.42 | % | |||||
* - Amounts included in nonperforming loans above.
Northwest Bancshares, Inc. and Subsidiaries
Exposure to the oil and gas industry
(Dollars in thousands)
March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||
Direct exposure to oil and gas extraction: | |||||||||||||||
Outstanding balance | $ | 13,764 | 16,619 | 17,209 | 17,990 | 18,417 | |||||||||
Commitments | 18,450 | 19,576 | 20,127 | 20,511 | 21,181 | ||||||||||
Impaired | 1,127 | 1,127 | 1,127 | — | — | ||||||||||
Reserve | 1,157 | 1,190 | 1,313 | 274 | 208 | ||||||||||
Indirect exposure: * | |||||||||||||||
Outstanding balance | 54,465 | 56,659 | 57,805 | 72,416 | 66,386 | ||||||||||
Commitments | 58,522 | 68,659 | 79,226 | 99,661 | 102,252 | ||||||||||
Impaired | — | — | — | 217 | 219 | ||||||||||
Reserve | 195 | 34 | 150 | 103 | 69 | ||||||||||
Total exposure: | |||||||||||||||
Outstanding balance | 68,229 | 73,278 | 75,014 | 90,406 | 84,803 | ||||||||||
Commitments | 76,972 | 88,235 | 99,353 | 120,172 | 123,433 | ||||||||||
Impaired | 1,127 | 1,127 | 1,127 | 217 | 219 | ||||||||||
Reserve | 1,352 | 1,224 | 1,463 | 377 | 277 | ||||||||||
* - Includes loans to haulers, wholesalers, and refineries.
Northwest Bancshares, Inc. and Subsidiaries
Loans by credit quality indicators
(Dollars in thousands)
At March 13, 2016 | Pass | Special mention * | Substandard ** | Doubtful | Loss | Recorded investment in loans receivable | |||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,755,325 | — | 13,721 | — | 1,317 | 2,770,363 | ||||||||||||
Home equity loans | 1,161,382 | — | 8,439 | — | — | 1,169,821 | |||||||||||||
Consumer loans | 523,333 | — | 2,204 | — | — | 525,537 | |||||||||||||
Total Personal Banking | 4,440,040 | — | 24,364 | — | 1,317 | 4,465,721 | |||||||||||||
Business Banking: | |||||||||||||||||||
Commercial real estate loans | 2,167,110 | 63,695 | 130,043 | 15 | — | 2,360,863 | |||||||||||||
Commercial loans | 409,994 | 16,425 | 39,887 | 1,112 | — | 467,418 | |||||||||||||
Total Business Banking | 2,577,104 | 80,120 | 169,930 | 1,127 | — | 2,828,281 | |||||||||||||
Total loans | $ | 7,017,144 | 80,120 | 194,294 | 1,127 | 1,317 | 7,294,002 | ||||||||||||
At December 31, 2015 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,725,492 | — | 14,060 | — | 1,340 | 2,740,892 | ||||||||||||
Home equity loans | 1,178,735 | — | 8,371 | — | — | 1,187,106 | |||||||||||||
Consumer loans | 517,746 | — | 2,543 | — | — | 520,289 | |||||||||||||
Total Personal Banking | 4,421,973 | — | 24,974 | — | 1,340 | 4,448,287 | |||||||||||||
Business Banking: | |||||||||||||||||||
Commercial real estate loans | 2,170,951 | 53,390 | 126,978 | 115 | — | 2,351,434 | |||||||||||||
Commercial loans | 359,403 | 23,730 | 38,157 | 1,110 | — | 422,400 | |||||||||||||
Total Business Banking | 2,530,354 | 77,120 | 165,135 | 1,225 | — | 2,773,834 | |||||||||||||
Total loans | $ | 6,952,327 | 77,120 | 190,109 | 1,225 | 1,340 | 7,222,121 | ||||||||||||
At September 30, 2015 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,699,670 | — | 11,512 | — | 1,355 | 2,712,537 | ||||||||||||
Home equity loans | 1,198,779 | — | 4,411 | — | — | 1,203,190 | |||||||||||||
Consumer loans | 492,023 | — | 2,691 | — | — | 494,714 | |||||||||||||
Total Personal Banking | 4,390,472 | — | 18,614 | — | 1,355 | 4,410,441 | |||||||||||||
Business Banking: | |||||||||||||||||||
Commercial real estate loans | 2,154,439 | 33,339 | 143,086 | — | — | 2,330,864 | |||||||||||||
Commercial loans | 353,366 | 19,364 | 37,413 | 165 | — | 410,308 | |||||||||||||
Total Business Banking | 2,507,805 | 52,703 | 180,499 | 165 | — | 2,741,172 | |||||||||||||
Total loans | $ | 6,898,277 | 52,703 | 199,113 | 165 | 1,355 | 7,151,613 | ||||||||||||
At June 30, 2015 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,584,438 | — | 11,362 | — | 1,370 | 2,597,170 | ||||||||||||
Home equity loans | 1,051,213 | — | 4,616 | — | — | 1,055,829 | |||||||||||||
Consumer loans | 250,648 | — | 1,743 | — | — | 252,391 | |||||||||||||
Total Personal Banking | 3,886,299 | — | 17,721 | — | 1,370 | 3,905,390 | |||||||||||||
Business Banking: | |||||||||||||||||||
Commercial real estate loans | 1,688,449 | 37,497 | 133,797 | — | — | 1,859,743 | |||||||||||||
Commercial loans | 301,467 | 19,793 | 38,262 | 2 | — | 359,524 | |||||||||||||
Total Business Banking | 1,989,916 | 57,290 | 172,059 | 2 | — | 2,219,267 | |||||||||||||
Total loans | $ | 5,876,215 | 57,290 | 189,780 | 2 | 1,370 | 6,124,657 | ||||||||||||
At March 31, 2015 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,531,595 | — | 10,851 | — | 1,424 | 2,543,870 | ||||||||||||
Home equity loans | 1,050,092 | — | 5,647 | — | — | 1,055,739 | |||||||||||||
Consumer loans | 238,381 | — | 1,575 | — | — | 239,956 | |||||||||||||
Total Personal Banking | 3,820,068 | — | 18,073 | — | 1,424 | 3,839,565 | |||||||||||||
Business Banking: | |||||||||||||||||||
Commercial real estate loans | 1,671,331 | 43,874 | 141,369 | — | — | 1,856,574 | |||||||||||||
Commercial loans | 305,632 | 22,651 | 31,243 | 9,199 | — | 368,725 | |||||||||||||
Total Business Banking | 1,976,963 | 66,525 | 172,612 | 9,199 | — | 2,225,299 | |||||||||||||
Total loans | $ | 5,797,031 | 66,525 | 190,685 | 9,199 | 1,424 | 6,064,864 | ||||||||||||
* - Includes $7.7 million, $7.6 million and $533,000 of acquired loans at March 31, 2016, December 31, 2015 and September 30, 2015, respectively.
** - Includes $17.9 million, $18.6 million and $18.5 million of acquired loans at March 31, 2016, December 31, 2015 and September 30, 2015, respectively.
Northwest Bancshares, Inc. and Subsidiaries
Loan delinquency
(Dollars in thousands)
March 31, 2016 | * | December 31, 2015 | * | September 30, 2015 | * | June 30, 2015 | * | March 31, 2015 | * | ||||||||||||||||||||||||||||||||||||||||
(Number of loans and dollar amount of loans) | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30 days to 59 days: | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 323 | $ | 24,494 | 0.9 | % | 349 | $ | 25,943 | 0.9 | % | 75 | $ | 3,644 | 0.1 | % | 64 | $ | 3,250 | 0.1 | % | 336 | 25,586 | 1.0 | % | |||||||||||||||||||||||||
Home equity loans | 132 | 5,351 | 0.5 | % | 173 | 5,806 | 0.5 | % | 149 | 5,770 | 0.5 | % | 112 | 3,768 | 0.4 | % | 128 | 3,737 | 0.4 | % | |||||||||||||||||||||||||||||
Consumer loans | 895 | 5,511 | 1.0 | % | 1,234 | 7,101 | 1.4 | % | 1,214 | 6,324 | 1.3 | % | 1,103 | 5,116 | 2.0 | % | 912 | 4,374 | 1.8 | % | |||||||||||||||||||||||||||||
Commercial real estate loans | 51 | 27,474 | 1.2 | % | 48 | 24,877 | 1.1 | % | 55 | 7,463 | 0.3 | % | 39 | 3,788 | 0.2 | % | 50 | 5,497 | 0.3 | % | |||||||||||||||||||||||||||||
Commercial loans | 26 | 3,133 | 0.7 | % | 31 | 2,868 | 0.7 | % | 21 | 1,379 | 0.3 | % | 21 | 1,363 | 0.4 | % | 36 | 1,480 | 0.4 | % | |||||||||||||||||||||||||||||
Total loans delinquent 30 days to 59 days | 1,427 | $ | 65,963 | 0.9 | % | 1,835 | $ | 66,595 | 0.9 | % | 1,514 | $ | 24,580 | 0.3 | % | 1,339 | $ | 17,285 | 0.3 | % | 1,462 | 40,674 | 0.7 | % | |||||||||||||||||||||||||
Loans delinquent 60 days to 89 days: | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 21 | $ | 1,358 | — | % | 100 | $ | 7,790 | 0.3 | % | 83 | $ | 5,193 | 0.2 | % | 70 | $ | 5,815 | 0.2 | % | 40 | 3,397 | 0.1 | % | |||||||||||||||||||||||||
Home equity loans | 36 | 1,256 | 0.1 | % | 50 | 2,478 | 0.2 | % | 52 | 1,716 | 0.1 | % | 39 | 2,090 | 0.2 | % | 34 | 1,404 | 0.1 | % | |||||||||||||||||||||||||||||
Consumer loans | 379 | 1,803 | 0.3 | % | 521 | 2,521 | 0.5 | % | 512 | 2,593 | 0.5 | % | 442 | 1,767 | 0.7 | % | 352 | 1,515 | 0.6 | % | |||||||||||||||||||||||||||||
Commercial real estate loans | 11 | 1,081 | — | % | 21 | 8,228 | 0.3 | % | 28 | 8,368 | 0.4 | % | 30 | 4,919 | 0.3 | % | 21 | 2,351 | 0.1 | % | |||||||||||||||||||||||||||||
Commercial loans | 7 | 375 | 0.1 | % | 7 | 598 | 0.1 | % | 8 | 401 | 0.1 | % | 7 | 159 | — | % | 5 | 136 | — | % | |||||||||||||||||||||||||||||
Total loans delinquent 60 days to 89 days | 454 | $ | 5,873 | 0.1 | % | 699 | $ | 21,615 | 0.3 | % | 683 | $ | 18,271 | 0.3 | % | 588 | $ | 14,750 | 0.2 | % | 452 | 8,803 | 0.1 | % | |||||||||||||||||||||||||
Loans delinquent 90 days or more: ** | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 183 | $ | 14,673 | 0.5 | % | 215 | $ | 16,350 | 0.6 | % | 204 | $ | 17,209 | 0.6 | % | 203 | $ | 16,125 | 0.6 | % | 193 | 15,068 | 0.6 | % | |||||||||||||||||||||||||
Home equity loans | 120 | 6,200 | 0.5 | % | 143 | 6,112 | 0.5 | % | 136 | 5,554 | 0.5 | % | 104 | 4,616 | 0.4 | % | 123 | 5,646 | 0.5 | % | |||||||||||||||||||||||||||||
Consumer loans | 557 | 2,386 | 0.5 | % | 523 | 2,926 | 0.6 | % | 570 | 3,156 | 0.6 | % | 440 | 2,199 | 0.9 | % | 440 | 2,045 | 0.9 | % | |||||||||||||||||||||||||||||
Commercial real estate loans | 106 | 15,442 | 0.7 | % | 113 | 19,031 | 0.8 | % | 95 | 14,898 | 0.6 | % | 76 | 12,673 | 0.7 | % | 84 | 8,233 | 0.4 | % | |||||||||||||||||||||||||||||
Commercial loans | 34 | 3,456 | 0.7 | % | 25 | 2,599 | 0.6 | % | 23 | 2,319 | 0.6 | % | 13 | 1,858 | 0.5 | % | 16 | 1,921 | 0.5 | % | |||||||||||||||||||||||||||||
Total loans delinquent 90 days or more | 1,000 | $ | 42,157 | 0.6 | % | 1,019 | $ | 47,018 | 0.7 | % | 1,028 | $ | 43,136 | 0.6 | % | 836 | $ | 37,471 | 0.6 | % | 856 | 32,913 | 0.5 | % | |||||||||||||||||||||||||
Total loans delinquent | 2,881 | $ | 113,993 | 1.6 | % | 3,553 | $ | 135,228 | 1.9 | % | 3,225 | $ | 85,987 | 1.2 | % | 2,763 | $ | 69,506 | 1.1 | % | 2,770 | 82,390 | 1.4 | % | |||||||||||||||||||||||||
* - Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
** - Includes purchased credit impaired loans of $3.1 million, $3.7 million and $6.3 million at March 31, 2016, December 31, 2015 and September 30, 2015, respectively.
Northwest Bancshares, Inc. and Subsidiaries
Allowance for loan losses
(Dollars in thousands)
Quarter ended | |||||||||||||||
March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||
Beginning balance | $ | 62,672 | 60,547 | 59,057 | 67,298 | 67,518 | |||||||||
Provision | 1,660 | 4,595 | 3,167 | 1,050 | 900 | ||||||||||
Charge-offs residential mortgage | (564 | ) | (171 | ) | (342 | ) | (278 | ) | (335 | ) | |||||
Charge-offs home equity | (984 | ) | (1,097 | ) | (443 | ) | (542 | ) | (342 | ) | |||||
Charge-offs consumer | (2,403 | ) | (2,561 | ) | (2,014 | ) | (1,759 | ) | (1,940 | ) | |||||
Charge-offs commercial real estate | (897 | ) | (1,216 | ) | (558 | ) | (3,439 | ) | (1,113 | ) | |||||
Charge-offs commercial | (117 | ) | (508 | ) | (595 | ) | (6,356 | ) | (724 | ) | |||||
Recoveries | 2,911 | 3,083 | 2,275 | 3,083 | 3,334 | ||||||||||
Ending balance | $ | 62,278 | 62,672 | 60,547 | 59,057 | 67,298 | |||||||||
Net charge-offs to average loans, annualized | 0.11 | % | 0.14 | % | 0.10 | % | 0.61 | % | 0.07 | % | |||||
Northwest Bancshares, Inc. and Subsidiaries
Average balance sheet
(Dollars in thousands)
The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
Quarter ended | |||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Avg. Yield/ Cost (i) | Average Balance | Interest | Avg. Yield/ Cost (i) | Average Balance | Interest | Avg. Yield/ Cost (i) | Average Balance | Interest | Avg. Yield/ Cost (i) | Average Balance | Interest | Avg. Yield/ Cost (i) | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | $ | 2,739,787 | 29,786 | 4.35 | % | $ | 2,710,811 | 29,227 | 4.31 | % | $ | 2,632,199 | 29,060 | 4.42 | % | $ | 2,546,712 | 28,395 | 4.46 | % | $ | 2,512,202 | 28,255 | 4.50 | % | ||||||||||||||||||||||||
Home equity loans | 1,177,406 | 12,642 | 4.32 | % | 1,193,433 | 12,753 | 4.24 | % | 1,114,931 | 12,208 | 4.34 | % | 1,054,508 | 11,402 | 4.34 | % | 1,059,128 | 11,473 | 4.39 | % | |||||||||||||||||||||||||||||
Consumer loans | 510,091 | 8,219 | 6.48 | % | 500,175 | 8,805 | 6.98 | % | 364,378 | 7,146 | 7.78 | % | 245,832 | 6,529 | 10.65 | % | 239,927 | 6,290 | 10.63 | % | |||||||||||||||||||||||||||||
Commercial real estate loans | 2,349,748 | 25,993 | 4.38 | % | 2,331,769 | 25,972 | 4.36 | % | 2,100,463 | 24,061 | 4.48 | % | 1,859,790 | 21,257 | 4.52 | % | 1,799,324 | 20,927 | 4.65 | % | |||||||||||||||||||||||||||||
Commercial loans | 441,977 | 4,723 | 4.23 | % | 412,415 | 4,671 | 4.43 | % | 372,693 | 4,108 | 4.31 | % | 367,069 | 3,862 | 4.16 | % | 408,669 | 4,237 | 4.15 | % | |||||||||||||||||||||||||||||
Total loans receivable (a) (b) (d) | 7,219,009 | 81,363 | 4.53 | % | 7,148,603 | 81,428 | 4.52 | % | 6,584,664 | 76,583 | 4.66 | % | 6,073,911 | 71,445 | 4.72 | % | 6,019,250 | 71,182 | 4.80 | % | |||||||||||||||||||||||||||||
Mortgage-backed securities (c) | 488,294 | 2,229 | 1.83 | % | 519,736 | 2,301 | 1.77 | % | 498,757 | 2,230 | 1.79 | % | 477,800 | 2,058 | 1.72 | % | 506,778 | 2,234 | 1.76 | % | |||||||||||||||||||||||||||||
Investment securities (c) (d) | 387,460 | 2,151 | 2.22 | % | 427,363 | 2,394 | 2.24 | % | 482,666 | 2,754 | 2.28 | % | 482,670 | 2,887 | 2.39 | % | 486,078 | 3,119 | 2.57 | % | |||||||||||||||||||||||||||||
FHLB stock (g) | 37,098 | 467 | 5.06 | % | 38,651 | 499 | 5.12 | % | 39,552 | 451 | 4.52 | % | 35,608 | 475 | 5.35 | % | 36,139 | 363 | 4.07 | % | |||||||||||||||||||||||||||||
Other interest-earning deposits | 43,578 | 59 | 0.54 | % | 40,410 | 13 | 0.13 | % | 162,041 | 99 | 0.24 | % | 272,691 | 180 | 0.26 | % | 246,296 | 139 | 0.23 | % | |||||||||||||||||||||||||||||
Total interest-earning assets | 8,175,439 | 86,269 | 4.24 | % | 8,174,763 | 86,635 | 4.20 | % | 7,767,680 | 82,117 | 4.24 | % | 7,342,680 | 77,045 | 4.21 | % | 7,294,541 | 77,037 | 4.28 | % | |||||||||||||||||||||||||||||
Noninterest earning assets (e) | 735,562 | 747,317 | 846,439 | 529,528 | 595,425 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 8,911,001 | $ | 8,922,080 | $ | 8,614,119 | $ | 7,872,208 | $ | 7,889,966 | |||||||||||||||||||||||||||||||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Savings deposits | $ | 1,405,800 | 865 | 0.25 | % | $ | 1,378,377 | 871 | 0.25 | % | $ | 1,324,620 | 865 | 0.26 | % | $ | 1,263,785 | 838 | 0.27 | % | $ | 1,231,745 | 813 | 0.27 | % | ||||||||||||||||||||||||
Interest-bearing demand deposits | 1,093,839 | 156 | 0.06 | % | 1,083,524 | 157 | 0.06 | % | 1,022,585 | 149 | 0.06 | % | 920,071 | 131 | 0.06 | % | 878,230 | 131 | 0.06 | % | |||||||||||||||||||||||||||||
Money market deposit accounts | 1,288,535 | 865 | 0.27 | % | 1,279,181 | 873 | 0.27 | % | 1,217,122 | 825 | 0.27 | % | 1,147,017 | 759 | 0.27 | % | 1,165,159 | 765 | 0.27 | % | |||||||||||||||||||||||||||||
Time deposits | 1,664,322 | 4,202 | 1.02 | % | 1,720,895 | 4,534 | 1.05 | % | 1,577,159 | 4,324 | 1.09 | % | 1,409,740 | 3,963 | 1.13 | % | 1,452,476 | 4,057 | 1.13 | % | |||||||||||||||||||||||||||||
Borrowed funds (f) | 899,439 | 6,539 | 2.92 | % | 906,574 | 6,730 | 2.95 | % | 906,410 | 6,713 | 2.94 | % | 929,744 | 6,929 | 2.99 | % | 960,812 | 6,975 | 2.94 | % | |||||||||||||||||||||||||||||
Junior subordinated debentures | 111,213 | 1,119 | 3.98 | % | 116,626 | 1,321 | 4.43 | % | 111,213 | 1,274 | 4.48 | % | 103,094 | 1,172 | 4.50 | % | 103,094 | 1,158 | 4.49 | % | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 6,463,148 | 13,746 | 0.86 | % | 6,485,177 | 14,486 | 0.89 | % | 6,159,109 | 14,150 | 0.91 | % | 5,773,451 | 13,792 | 0.96 | % | 5,791,516 | 13,899 | 0.97 | % | |||||||||||||||||||||||||||||
Noninterest-bearing demand deposits (h) | 1,161,151 | 1,145,276 | 1,054,270 | 957,912 | 914,025 | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest bearing liabilities | 122,667 | 133,323 | 275,435 | 77,075 | 121,121 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 7,746,966 | 7,763,776 | 7,488,814 | 6,808,438 | 6,826,662 | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 1,164,035 | 1,158,304 | 1,125,305 | 1,063,770 | 1,063,304 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 8,911,001 | $ | 8,922,080 | $ | 8,614,119 | $ | 7,872,208 | $ | 7,889,966 | |||||||||||||||||||||||||||||||||||||||
Net interest income/ Interest rate spread | 72,523 | 3.38 | % | 72,149 | 3.31 | % | 67,967 | 3.33 | % | 63,253 | 3.25 | % | 63,138 | 3.31 | % | ||||||||||||||||||||||||||||||||||
Net interest-earning assets/ Net interest margin | $ | 1,712,291 | 3.57 | % | $ | 1,689,586 | 3.53 | % | $ | 1,608,571 | 3.50 | % | $ | 1,569,229 | 3.45 | % | $ | 1,503,025 | 3.51 | % | |||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.26X | 1.26X | 1.26X | 1.27X | 1.26X | ||||||||||||||||||||||||||||||||||||||||||||
(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.
(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.
(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
(f) Average balances include FHLB borrowings and collateralized borrowings.
(g) Excludes a $1.0 million special dividend paid in February 2015 from the average yield calculation.
(h) Average cost of deposits were 0.37%, 0.39%, 0.39%, 0.40% and 0.41%, respectively.
(i) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.50%, 4.49%, 4.63%, 4.69% and 4.76%, respectively, Investment securities - 1.82%, 1.82%, 1.84%, 1.88% and 1.97%, respectively, Interest-earning assets - 4.20%, 4.16%, 4.19%, 4.15% and 4.21%, respectively. GAAP basis net interest rate spreads were 3.34%, 3.27%, 3.28%, 3.19% and 3.24%, respectively, and GAAP basis net interest margins were 3.55%, 3.48%, 3.45%, 3.39% and 3.44%, respectively.