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| 8-K - 8-K - Northwest Bancshares, Inc. | a2018-09x30nwbi8kcover.htm |
EXHIBIT 99.1
PRESS RELEASE OF NORTHWEST BANCSHARES, INC.
EARNINGS RELEASE
FOR IMMEDIATE RELEASE
Contact: | Ronald J. Seiffert, 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 Third Quarter 2018 Earnings and Quarterly Dividend
Warren, Pennsylvania — October 22, 2018
Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2018 of $27.7 million, or $0.27 per diluted share. This represents an increase of $4.1 million, or 17.6%, compared to the same quarter last year when net income was $23.6 million or $0.23 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended September 30, 2018 were 8.93% and 1.15% compared to 7.81% and 0.99% for the same quarter last year.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.17 per share payable on November 15, 2018, to shareholders of record as of November 1, 2018. This is the 96th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's stock as of September 30, 2018, this represents an annualized dividend yield of approximately 4.0%.
In making this announcement, Ronald J. Seiffert, President and CEO, noted, "Overall we were pleased with the third quarter results despite elevated charge-offs and two large commercial loan payoffs. Net charge-offs of $8.3 million were largely impacted by a $4.6 million write down of a land development loan in our western New York region. The remaining loan amount of approximately $8.4 million also negatively impacted our 90 day delinquency for the quarter. In addition, commercial loan growth for the quarter was stunted by two large payoffs totaling approximately $71.0 million, one in our New York region, which was a previously criticized loan, and one in our corporate finance division in the Pittsburgh market which was refinanced by a bond issuance."
Mr. Seiffert continued "Despite these two challenging circumstances, we still experienced an increase in net income from the prior year and the linked second quarter with earnings per share of $0.27. We were particularly pleased with the expansion of our net interest margin by 6 basis points compared to last year as well as with our efficiency ratio dropping below 60.0%."
Net interest income increased by $2.6 million, or 3.1%, to $85.8 million for the quarter ended September 30, 2018, from $83.2 million for the quarter ended September 30, 2017 primarily due to a $5.4 million, or 6.3%, increase in interest income on loans receivable. This increase was primarily the result of an increase in the average balance of loans receivable of $261.0 million, or 3.4%, and an increase in the average yield on loans receivable of eleven basis points as a result of the recent increases in market interest rates. Partially offsetting this improvement was an increase in interest expense on deposits of $2.4 million, or 42.1%, due to the aforementioned increases in market interest rates. The net impact of these changes caused the Company's net interest margin to increase to 3.92% for the quarter ended September 30, 2018 from 3.86% for the same quarter last year.
The provision for loan losses increased by $4.0 million, or 130.7%, to $7.0 million for the quarter ended September 30, 2018, from $3.0 million for the quarter ended September 30, 2017. This increase is due primarily to the loan write-down discussed above as well as the recalculation of the quantitative and qualitative factors used to determine the allowance for loan losses.
Noninterest income decreased by $2.0 million, or 8.3%, to $22.6 million for the quarter ended September 30, 2018, from $24.6 million for the quarter ended September 30, 2017. This decrease was due primarily to a $1.5 million gain on the sale of investments realized during the quarter ended September 30, 2017. Additionally, trust and other financial services income decreased by $539,000, or 11.2%, compared to the same quarter last year primarily as a result of the sale of the Company's retirement services subsidiary in the fourth quarter of 2017.
Noninterest expense decreased by $2.2 million, or 3.2%, to $66.6 million for the quarter ended September 30, 2018, from $68.8 million for the quarter ended September 30, 2017. This decrease resulted primarily from a $1.2 million, or 86.7%, decrease in restructuring/ acquisition expense due primarily to the restructuring that occurred during 2017, including the closure of the Company's consumer finance subsidiary. Most of the other noninterest expense categories also decreased due to the favorable impact of the changes made in the prior year including the sale of the Company's Maryland branches and retirement services subsidiary, along with the closure of the consumer finance subsidiary.
Income tax expense decreased by $5.4 million, or 43.3%, to $7.0 million for the quarter ended September 30, 2018, from $12.4 million for the quarter ended September 30, 2017. This decrease resulted primarily from the enactment of the Tax Cuts and Jobs Act in December 2017. The Company's effective tax rate, which includes both federal and state income taxes, decreased to 20.2% for the quarter ended September 30, 2018 from 34.5% for the quarter ended September 30, 2017. Additionally, income before tax decreased by $1.2 million, or 3.4%, to $34.8 million for the quarter ended September 30, 2018 from $36.0 million for the quarter ended September 30, 2017.
Net income for the nine month period ended September 30, 2018 was $79.0 million, or $0.76 per diluted share. This represents an increase of $6.7 million, or 9.3%, compared to the nine month period ended September 30, 2017, when net income was $72.3 million, or $0.71 per diluted share. The annualized returns on average shareholders’ equity and average assets for the nine month period ended September 30, 2018 were 8.67% and 1.11% compared to 8.16% and 1.01% for the same period last year. This increase in net income was the result of an increase in net interest income after provision of $2.0 million, or 0.8%, a reduction in noninterest expense of $9.9 million, or 4.6%, and a lower effective tax rate as a result of the Tax Cuts and Jobs Act.
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 162 full-service community banking offices and ten free standing drive-through facilities in Pennsylvania, New York and Ohio. 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; 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)
September 30, 2018 | December 31, 2017 | September 30, 2017 | |||||||
Assets | |||||||||
Cash and cash equivalents | $ | 73,946 | 77,710 | 165,676 | |||||
Marketable securities available-for-sale (amortized cost of $829,345, $800,094 and $867,311, respectively) | 811,556 | 792,535 | 869,481 | ||||||
Marketable securities held-to-maturity (fair value of $23,534, $29,667 and $32,282, respectively) | 24,222 | 29,678 | 31,961 | ||||||
Total cash and cash equivalents and marketable securities | 909,724 | 899,923 | 1,067,118 | ||||||
Residential mortgage loans held for sale | — | 3,128 | 1,382 | ||||||
Residential mortgage loans | 2,846,834 | 2,773,075 | 2,741,844 | ||||||
Home equity loans | 1,272,345 | 1,310,355 | 1,313,435 | ||||||
Consumer loans | 776,049 | 671,389 | 673,920 | ||||||
Commercial real estate loans | 2,518,066 | 2,454,726 | 2,398,886 | ||||||
Commercial loans | 582,768 | 580,736 | 596,671 | ||||||
Total loans receivable | 7,996,062 | 7,793,409 | 7,726,138 | ||||||
Allowance for loan losses | (55,975 | ) | (56,795 | ) | (56,927 | ) | |||
Loans receivable, net | 7,940,087 | 7,736,614 | 7,669,211 | ||||||
Federal Home Loan Bank stock, at cost | 15,452 | 11,733 | 7,984 | ||||||
Accrued interest receivable | 25,798 | 23,352 | 22,802 | ||||||
Real estate owned, net | 2,486 | 5,666 | 5,462 | ||||||
Premises and equipment, net | 144,612 | 151,944 | 152,761 | ||||||
Bank owned life insurance | 170,042 | 171,547 | 173,096 | ||||||
Goodwill | 307,420 | 307,420 | 307,420 | ||||||
Other intangible assets | 21,167 | 25,669 | 27,244 | ||||||
Other assets | 38,543 | 30,066 | 26,716 | ||||||
Total assets | $ | 9,575,331 | 9,363,934 | 9,459,814 | |||||
Liabilities and shareholders’ equity | |||||||||
Liabilities | |||||||||
Noninterest-bearing demand deposits | $ | 1,724,202 | 1,610,409 | 1,625,189 | |||||
Interest-bearing demand deposits | 1,499,344 | 1,442,928 | 1,451,818 | ||||||
Money market deposit accounts | 1,676,845 | 1,707,450 | 1,759,395 | ||||||
Savings deposits | 1,650,357 | 1,653,579 | 1,669,782 | ||||||
Time deposits | 1,403,205 | 1,412,623 | 1,435,861 | ||||||
Total deposits | 7,953,953 | 7,826,989 | 7,942,045 | ||||||
Borrowed funds | 179,117 | 108,238 | 115,388 | ||||||
Advances by borrowers for taxes and insurance | 23,297 | 40,825 | 21,864 | ||||||
Accrued interest payable | 627 | 460 | 518 | ||||||
Other liabilities | 66,448 | 68,485 | 62,939 | ||||||
Junior subordinated debentures | 111,213 | 111,213 | 111,213 | ||||||
Total liabilities | 8,334,655 | 8,156,210 | 8,253,967 | ||||||
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, 103,293,480 shares, 102,394,828 shares and 102,565,667 shares issued and outstanding, respectively | 1,033 | 1,027 | 1,026 | ||||||
Paid-in-capital | 742,863 | 730,719 | 728,163 | ||||||
Retained earnings | 541,469 | 508,058 | 502,265 | ||||||
Accumulated other comprehensive loss | (44,689 | ) | (32,080 | ) | (25,607 | ) | |||
Total shareholders’ equity | 1,240,676 | 1,207,724 | 1,205,847 | ||||||
Total liabilities and shareholders’ equity | $ | 9,575,331 | 9,363,934 | 9,459,814 | |||||
Equity to assets | 12.96 | % | 12.90 | % | 12.75 | % | |||
Tangible common equity to assets | 9.86 | % | 9.68 | % | 9.55 | % | |||
Book value per share | $ | 12.01 | 11.79 | 11.76 | |||||
Tangible book value per share | $ | 8.83 | 8.54 | 8.49 | |||||
Closing market price per share | $ | 17.32 | 16.73 | 17.27 | |||||
Full time equivalent employees | 2,133 | 2,106 | 2,137 | ||||||
Number of banking offices | 172 | 172 | 173 | ||||||
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share amounts)
Quarter ended | |||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | |||||||||||
Interest income: | |||||||||||||||
Loans receivable | $ | 90,733 | 88,106 | 85,220 | 87,154 | 85,373 | |||||||||
Mortgage-backed securities | 3,572 | 3,254 | 3,013 | 3,016 | 3,118 | ||||||||||
Taxable investment securities | 814 | 648 | 678 | 805 | 957 | ||||||||||
Tax-free investment securities | 205 | 313 | 390 | 449 | 476 | ||||||||||
FHLB dividends | 119 | 85 | 97 | 78 | 63 | ||||||||||
Interest-earning deposits | 162 | 469 | 135 | 59 | 244 | ||||||||||
Total interest income | 95,605 | 92,875 | 89,533 | 91,561 | 90,231 | ||||||||||
Interest expense: | |||||||||||||||
Deposits | 8,233 | 7,309 | 6,458 | 5,971 | 5,795 | ||||||||||
Borrowed funds | 1,555 | 1,340 | 1,308 | 1,350 | 1,199 | ||||||||||
Total interest expense | 9,788 | 8,649 | 7,766 | 7,321 | 6,994 | ||||||||||
Net interest income | 85,817 | 84,226 | 81,767 | 84,240 | 83,237 | ||||||||||
Provision for loan losses | 6,982 | 5,349 | 4,209 | 6,525 | 3,027 | ||||||||||
Net interest income after provision for loan losses | 78,835 | 78,877 | 77,558 | 77,715 | 80,210 | ||||||||||
Noninterest income: | |||||||||||||||
Gain/ (loss) on sale of investments | — | — | 153 | (369 | ) | 1,497 | |||||||||
Service charges and fees | 13,158 | 12,908 | 11,899 | 12,527 | 12,724 | ||||||||||
Trust and other financial services income | 4,254 | 4,050 | 4,031 | 4,290 | 4,793 | ||||||||||
Insurance commission income | 2,046 | 2,090 | 2,749 | 1,874 | 1,992 | ||||||||||
Gain/ (loss) on real estate owned, net | (247 | ) | 176 | (546 | ) | (307 | ) | (193 | ) | ||||||
Income from bank owned life insurance | 1,460 | 2,333 | 990 | 2,295 | 1,078 | ||||||||||
Mortgage banking income | 82 | 77 | 224 | 225 | 519 | ||||||||||
Other operating income | 1,804 | 2,475 | 2,288 | 2,370 | 2,184 | ||||||||||
Total noninterest income | 22,557 | 24,109 | 21,788 | 22,905 | 24,594 | ||||||||||
Noninterest expense: | |||||||||||||||
Compensation and employee benefits | 37,535 | 39,031 | 36,510 | 39,293 | 36,556 | ||||||||||
Premises and occupancy costs | 6,821 | 6,824 | 7,307 | 7,293 | 6,951 | ||||||||||
Office operations | 3,508 | 3,768 | 3,408 | 4,011 | 3,939 | ||||||||||
Collections expense | 483 | 434 | 512 | 1,179 | 568 | ||||||||||
Processing expenses | 9,620 | 9,560 | 9,706 | 9,888 | 9,650 | ||||||||||
Marketing expenses | 1,949 | 2,014 | 2,140 | 2,125 | 2,488 | ||||||||||
Federal deposit insurance premiums | 721 | 671 | 717 | 724 | 771 | ||||||||||
Professional services | 2,368 | 2,819 | 2,277 | 2,945 | 2,321 | ||||||||||
Amortization of intangible assets | 1,462 | 1,520 | 1,520 | 1,575 | 1,691 | ||||||||||
Real estate owned expense | 205 | 133 | 292 | 195 | 310 | ||||||||||
Restructuring/ acquisition expense | 186 | 393 | — | 164 | 1,398 | ||||||||||
Other expense | 1,759 | 2,620 | 3,032 | 2,504 | 2,156 | ||||||||||
Total noninterest expense | 66,617 | 69,787 | 67,421 | 71,896 | 68,799 | ||||||||||
Income before income taxes | 34,775 | 33,199 | 31,925 | 28,724 | 36,005 | ||||||||||
Income tax expense | 7,035 | 6,900 | 6,940 | 6,576 | 12,414 | ||||||||||
Net income | $ | 27,740 | 26,299 | 24,985 | 22,148 | 23,591 | |||||||||
Basic earnings per share | $ | 0.27 | 0.26 | 0.25 | 0.22 | 0.23 | |||||||||
Diluted earnings per share | $ | 0.27 | 0.25 | 0.24 | 0.22 | 0.23 | |||||||||
Weighted average common shares outstanding - basic | 102,334,954 | 101,870,043 | 101,598,928 | 101,293,307 | 101,163,534 | ||||||||||
Weighted average common shares outstanding - diluted | 103,942,695 | 103,424,154 | 103,136,497 | 102,643,726 | 102,564,476 | ||||||||||
Annualized return on average equity | 8.93 | % | 8.67 | % | 8.40 | % | 7.31 | % | 7.81 | % | |||||
Annualized return on average assets | 1.15 | % | 1.11 | % | 1.08 | % | 0.94 | % | 0.99 | % | |||||
Annualized return on tangible common equity | 12.07 | % | 11.74 | % | 11.47 | % | 10.05 | % | 10.74 | % | |||||
Efficiency ratio * | 59.95 | % | 62.65 | % | 63.64 | % | 65.48 | % | 60.94 | % | |||||
Annualized noninterest expense to average assets * | 2.70 | % | 2.87 | % | 2.97 | % | 2.76 | % | 2.76 | % | |||||
* Excludes restructuring/ acquisition expenses and amortization of intangible assets (non-GAAP).
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share amounts)
Nine months ended September 30, | ||||||
2018 | 2017 | |||||
Interest income: | ||||||
Loans receivable | $ | 264,059 | 252,838 | |||
Mortgage-backed securities | 9,839 | 8,327 | ||||
Taxable investment securities | 2,140 | 2,944 | ||||
Tax-free investment securities | 908 | 1,574 | ||||
FHLB dividends | 301 | 172 | ||||
Interest-earning deposits | 766 | 1,440 | ||||
Total interest income | 278,013 | 267,295 | ||||
Interest expense: | ||||||
Deposits | 22,000 | 17,086 | ||||
Borrowed funds | 4,203 | 3,664 | ||||
Total interest expense | 26,203 | 20,750 | ||||
Net interest income | 251,810 | 246,545 | ||||
Provision for loan losses | 16,540 | 13,226 | ||||
Net interest income after provision for loan losses | 235,270 | 233,319 | ||||
Noninterest income: | ||||||
Gain on sale of investments | 153 | 1,517 | ||||
Service charges and fees | 37,965 | 37,190 | ||||
Trust and other financial services income | 12,335 | 13,697 | ||||
Insurance commission income | 6,885 | 7,139 | ||||
Loss on real estate owned, net | (617 | ) | (490 | ) | ||
Income from bank owned life insurance | 4,783 | 3,798 | ||||
Mortgage banking income | 383 | 1,193 | ||||
Gain on sale of offices | — | 17,186 | ||||
Other operating income | 6,567 | 6,345 | ||||
Total noninterest income | 68,454 | 87,575 | ||||
Noninterest expense: | ||||||
Compensation and employee benefits | 113,076 | 113,003 | ||||
Premises and occupancy costs | 20,952 | 21,570 | ||||
Office operations | 10,684 | 12,331 | ||||
Collections expense | 1,429 | 1,670 | ||||
Processing expenses | 28,886 | 29,198 | ||||
Marketing expenses | 6,103 | 7,482 | ||||
Federal deposit insurance premiums | 2,109 | 2,794 | ||||
Professional services | 7,464 | 7,348 | ||||
Amortization of intangible assets | 4,502 | 5,189 | ||||
Real estate owned expense | 630 | 809 | ||||
Restructuring/ acquisition expense | 579 | 4,255 | ||||
Other expense | 7,411 | 8,058 | ||||
Total noninterest expense | 203,825 | 213,707 | ||||
Income before income taxes | 99,899 | 107,187 | ||||
Income tax expense | 20,875 | 34,868 | ||||
Net income | $ | 79,024 | 72,319 | |||
Basic earnings per share | $ | 0.78 | 0.72 | |||
Diluted earnings per share | $ | 0.76 | 0.71 | |||
Weighted average common shares outstanding - basic | 101,937,338 | 100,921,322 | ||||
Weighted average common shares outstanding - diluted | 103,504,069 | 102,538,342 | ||||
Annualized return on average equity | 8.67 | % | 8.16 | % | ||
Annualized return on average assets | 1.11 | % | 1.01 | % | ||
Annualized return on tangible common equity | 11.58 | % | 11.10 | % | ||
Efficiency ratio * | 62.06 | % | 64.45 | % | ||
Annualized noninterest expense to average assets * | 2.80 | % | 2.86 | % | ||
* Excludes gain on sale of offices, restructuring/ acquisition expenses, and amortization of intangible assets (non-GAAP).
Northwest Bancshares, Inc. and Subsidiaries
Asset quality (Unaudited)
(Dollars in thousands)
September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | |||||||||||
Nonaccrual loans current: | |||||||||||||||
Residential mortgage loans | $ | 869 | 669 | 123 | 70 | 318 | |||||||||
Home equity loans | 496 | 237 | 269 | 615 | 439 | ||||||||||
Consumer loans | 126 | 218 | 178 | 317 | 260 | ||||||||||
Commercial real estate loans | 10,905 | 14,814 | 11,355 | 10,080 | 10,646 | ||||||||||
Commercial loans | 1,972 | 2,559 | 2,381 | 4,178 | 4,098 | ||||||||||
Total nonaccrual loans current | $ | 14,368 | 18,497 | 14,306 | 15,260 | 15,761 | |||||||||
Nonaccrual loans delinquent 30 days to 59 days: | |||||||||||||||
Residential mortgage loans | $ | 15 | 89 | 1,290 | 509 | 200 | |||||||||
Home equity loans | 333 | 221 | 232 | 167 | 466 | ||||||||||
Consumer loans | 182 | 192 | 224 | 239 | 200 | ||||||||||
Commercial real estate loans | 3,124 | 522 | 975 | 1,928 | 597 | ||||||||||
Commercial loans | 150 | 51 | 140 | 25 | — | ||||||||||
Total nonaccrual loans delinquent 30 days to 59 days | $ | 3,804 | 1,075 | 2,861 | 2,868 | 1,463 | |||||||||
Nonaccrual loans delinquent 60 days to 89 days: | |||||||||||||||
Residential mortgage loans | $ | 547 | 668 | 755 | 703 | 892 | |||||||||
Home equity loans | 418 | 483 | 465 | 874 | 499 | ||||||||||
Consumer loans | 464 | 194 | 224 | 500 | 405 | ||||||||||
Commercial real estate loans | 1,872 | 1,682 | 399 | 1,104 | 5,895 | ||||||||||
Commercial loans | 352 | 380 | 80 | 69 | 3 | ||||||||||
Total nonaccrual loans delinquent 60 days to 89 days | $ | 3,653 | 3,407 | 1,923 | 3,250 | 7,694 | |||||||||
Nonaccrual loans delinquent 90 days or more: | |||||||||||||||
Residential mortgage loans | $ | 13,154 | 11,822 | 10,660 | 13,509 | 11,785 | |||||||||
Home equity loans | 5,838 | 6,729 | 6,707 | 7,251 | 6,295 | ||||||||||
Consumer finance loans | 39 | 15 | 3 | 199 | 332 | ||||||||||
Consumer loans | 3,535 | 2,626 | 2,931 | 3,617 | 3,244 | ||||||||||
Commercial real estate loans | 27,122 | 15,617 | 16,145 | 15,361 | 22,583 | ||||||||||
Commercial loans | 2,714 | 2,925 | 3,144 | 3,140 | 4,177 | ||||||||||
Total nonaccrual loans delinquent 90 days or more | $ | 52,402 | 39,734 | 39,590 | 43,077 | 48,416 | |||||||||
Total nonaccrual loans | $ | 74,227 | 62,713 | 58,680 | 64,455 | 73,334 | |||||||||
Total nonaccrual loans | $ | 74,227 | 62,713 | 58,680 | 64,455 | 73,334 | |||||||||
Loans 90 days past maturity and still accruing | 195 | 94 | 210 | 502 | 398 | ||||||||||
Nonperforming loans | 74,422 | 62,807 | 58,890 | 64,957 | 73,732 | ||||||||||
Real estate owned, net | 2,486 | 2,722 | 4,041 | 5,666 | 5,462 | ||||||||||
Nonperforming assets | $ | 76,908 | 65,529 | 62,931 | 70,623 | 79,194 | |||||||||
Nonaccrual troubled debt restructuring * | $ | 9,777 | 10,860 | 11,217 | 12,285 | 17,809 | |||||||||
Accruing troubled debt restructuring | 19,370 | 19,802 | 19,749 | 19,819 | 20,660 | ||||||||||
Total troubled debt restructuring | $ | 29,147 | 30,662 | 30,966 | 32,104 | 38,469 | |||||||||
Nonperforming loans to total loans | 0.93 | % | 0.79 | % | 0.75 | % | 0.83 | % | 0.95 | % | |||||
Nonperforming assets to total assets | 0.80 | % | 0.69 | % | 0.66 | % | 0.75 | % | 0.84 | % | |||||
Allowance for loan losses to total loans | 0.70 | % | 0.72 | % | 0.70 | % | 0.73 | % | 0.74 | % | |||||
Allowance for loan losses to nonperforming loans | 75.21 | % | 91.28 | % | 93.75 | % | 87.43 | % | 77.16 | % | |||||
* Amounts included in nonperforming loans above.
Northwest Bancshares, Inc. and Subsidiaries
Loans by credit quality indicators (Unaudited)
(Dollars in thousands)
At September 30, 2018 | Pass | Special mention * | Substandard ** | Doubtful | Loss | Loans receivable | |||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,835,806 | — | 11,028 | — | — | 2,846,834 | ||||||||||||
Home equity loans | 1,265,237 | — | 7,108 | — | — | 1,272,345 | |||||||||||||
Consumer loans | 771,555 | — | 4,494 | — | — | 776,049 | |||||||||||||
Total Personal Banking | 4,872,598 | — | 22,630 | — | — | 4,895,228 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,283,152 | 53,529 | 181,385 | — | — | 2,518,066 | |||||||||||||
Commercial loans | 526,584 | 24,760 | 31,424 | — | — | 582,768 | |||||||||||||
Total Commercial Banking | 2,809,736 | 78,289 | 212,809 | — | — | 3,100,834 | |||||||||||||
Total loans | $ | 7,682,334 | 78,289 | 235,439 | — | — | 7,996,062 | ||||||||||||
At June 30, 2018 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,790,906 | — | 9,762 | — | — | 2,800,668 | ||||||||||||
Home equity loans | 1,268,884 | — | 7,297 | — | — | 1,276,181 | |||||||||||||
Consumer loans | 697,561 | — | 3,364 | — | — | 700,925 | |||||||||||||
Total Personal Banking | 4,757,351 | — | 20,423 | — | — | 4,777,774 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,294,327 | 65,698 | 193,198 | — | — | 2,553,223 | |||||||||||||
Commercial loans | 554,495 | 18,140 | 38,738 | — | 611,373 | ||||||||||||||
Total Commercial Banking | 2,848,822 | 83,838 | 231,936 | — | — | 3,164,596 | |||||||||||||
Total loans | $ | 7,606,173 | 83,838 | 252,359 | — | — | 7,942,370 | ||||||||||||
At March 31, 2018 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,755,078 | — | 17,070 | — | — | 2,772,148 | ||||||||||||
Home equity loans | 1,279,137 | — | 9,224 | — | — | 1,288,361 | |||||||||||||
Consumer loans | 682,433 | — | 3,605 | — | — | 686,038 | |||||||||||||
Total Personal Banking | 4,716,648 | — | 29,899 | — | — | 4,746,547 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,256,054 | 57,690 | 198,513 | — | — | 2,512,257 | |||||||||||||
Commercial loans | 557,613 | 19,147 | 46,703 | — | — | 623,463 | |||||||||||||
Total Commercial Banking | 2,813,667 | 76,837 | 245,216 | — | — | 3,135,720 | |||||||||||||
Total loans | $ | 7,530,315 | 76,837 | 275,115 | — | — | 7,882,267 | ||||||||||||
At December 31, 2017 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,758,465 | — | 17,738 | — | — | 2,776,203 | ||||||||||||
Home equity loans | 1,300,277 | — | 10,078 | — | — | 1,310,355 | |||||||||||||
Consumer loans | 666,629 | — | 4,760 | — | — | 671,389 | |||||||||||||
Total Personal Banking | 4,725,371 | — | 32,576 | — | — | 4,757,947 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,216,326 | 83,537 | 154,863 | — | — | 2,454,726 | |||||||||||||
Commercial loans | 511,035 | 19,297 | 50,404 | — | — | 580,736 | |||||||||||||
Total Commercial Banking | 2,727,361 | 102,834 | 205,267 | — | — | 3,035,462 | |||||||||||||
Total loans | $ | 7,452,732 | 102,834 | 237,843 | — | — | 7,793,409 | ||||||||||||
At September 30, 2017 | |||||||||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,725,060 | — | 18,166 | — | — | 2,743,226 | ||||||||||||
Home equity loans | 1,302,036 | — | 11,399 | — | — | 1,313,435 | |||||||||||||
Consumer loans | 669,532 | — | 4,388 | — | — | 673,920 | |||||||||||||
Total Personal Banking | 4,696,628 | — | 33,953 | — | — | 4,730,581 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,196,510 | 56,118 | 146,258 | — | — | 2,398,886 | |||||||||||||
Commercial loans | 526,824 | 18,924 | 50,923 | — | — | 596,671 | |||||||||||||
Total Commercial Banking | 2,723,334 | 75,042 | 197,181 | — | — | 2,995,557 | |||||||||||||
Total loans | $ | 7,419,962 | 75,042 | 231,134 | — | — | 7,726,138 | ||||||||||||
* Includes $9.2 million, $9.5 million, $7.9 million, $8.6 million and $8.9 million of acquired loans at September 30, 2018, June 30, 2018, March 31, 2018, December 30, 2017, and September 30, 2017, respectively.
** Includes $45.3 million, $44.5 million, $45.2 million, $46.7 million and $48.2 million of acquired loans at September 30, 2018, June 30, 2018, March 31, 2018, December 30, 2017, and September 30, 2017, respectively.
Northwest Bancshares, Inc. and Subsidiaries
Loan delinquency (Unaudited)
(Dollars in thousands)
September 30, 2018 | * | June 30, 2018 | * | March 31, 2018 | * | December 31, 2017 | * | September 30, 2017 | * | |||||||||||||||||||||||||||||||||||||||||
(Number of loans and dollar amount of loans) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30 days to 59 days: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 27 | $ | 1,500 | 0.1 | % | 30 | $ | 1,561 | 0.1 | % | 319 | $ | 27,403 | 1.0 | % | 317 | $ | 25,784 | 0.9 | % | 44 | $ | 2,771 | 0.1 | % | |||||||||||||||||||||||||
Home equity loans | 184 | 5,673 | 0.4 | % | 184 | 6,383 | 0.5 | % | 200 | 7,406 | 0.6 | % | 218 | 7,461 | 0.6 | % | 191 | 7,330 | 0.6 | % | ||||||||||||||||||||||||||||||
Consumer finance loans | 280 | 632 | 10.7 | % | 306 | 711 | 8.1 | % | 477 | 1,288 | 10.3 | % | 849 | 2,128 | 11.4 | % | 1,045 | 3,065 | 11.4 | % | ||||||||||||||||||||||||||||||
Consumer loans | 984 | 8,408 | 1.1 | % | 901 | 8,855 | 1.3 | % | 871 | 8,252 | 1.2 | % | 1,295 | 10,912 | 1.7 | % | 1,119 | 9,510 | 1.5 | % | ||||||||||||||||||||||||||||||
Commercial real estate loans | 36 | 5,386 | 0.2 | % | 40 | 5,898 | 0.2 | % | 58 | 20,303 | 0.8 | % | 53 | 8,315 | 0.3 | % | 27 | 5,753 | 0.2 | % | ||||||||||||||||||||||||||||||
Commercial loans | 17 | 622 | 0.1 | % | 24 | 1,000 | 0.2 | % | 35 | 2,912 | 0.5 | % | 26 | 1,865 | 0.3 | % | 16 | 746 | 0.1 | % | ||||||||||||||||||||||||||||||
Total loans delinquent 30 days to 59 days | 1,528 | $ | 22,221 | 0.3 | % | 1,485 | $ | 24,408 | 0.3 | % | 1,960 | $ | 67,564 | 0.9 | % | 2,758 | $ | 56,465 | 0.7 | % | 2,442 | $ | 29,175 | 0.4 | % | |||||||||||||||||||||||||
Loans delinquent 60 days to 89 days: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 61 | $ | 4,704 | 0.2 | % | 62 | $ | 5,847 | 0.2 | % | 21 | $ | 1,943 | 0.1 | % | 75 | $ | 6,235 | 0.2 | % | 84 | $ | 7,196 | 0.3 | % | |||||||||||||||||||||||||
Home equity loans | 69 | 2,536 | 0.2 | % | 73 | 2,495 | 0.2 | % | 52 | 2,040 | 0.2 | % | 72 | 2,871 | 0.2 | % | 73 | 2,390 | 0.2 | % | ||||||||||||||||||||||||||||||
Consumer finance loans | 112 | 234 | 4.0 | % | 127 | 277 | 3.2 | % | 109 | 233 | 1.9 | % | 412 | 1,113 | 6.0 | % | 831 | 2,190 | 8.1 | % | ||||||||||||||||||||||||||||||
Consumer loans | 352 | 3,251 | 0.4 | % | 350 | 2,654 | 0.4 | % | 296 | 2,259 | 0.3 | % | 463 | 3,351 | 0.5 | % | 473 | 3,283 | 0.5 | % | ||||||||||||||||||||||||||||||
Commercial real estate loans | 30 | 6,678 | 0.3 | % | 28 | 3,689 | 0.1 | % | 23 | 1,809 | 0.1 | % | 25 | 2,539 | 0.1 | % | 22 | 7,666 | 0.3 | % | ||||||||||||||||||||||||||||||
Commercial loans | 21 | 1,104 | 0.2 | % | 15 | 926 | 0.2 | % | 7 | 196 | — | % | 10 | 441 | 0.1 | % | 9 | 196 | — | % | ||||||||||||||||||||||||||||||
Total loans delinquent 60 days to 89 days | 645 | $ | 18,507 | 0.2 | % | 655 | $ | 15,888 | 0.2 | % | 508 | $ | 8,480 | 0.1 | % | 1,057 | $ | 16,550 | 0.2 | % | 1,492 | $ | 22,921 | 0.3 | % | |||||||||||||||||||||||||
Loans delinquent 90 days or more: ** | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 143 | $ | 13,483 | 0.5 | % | 140 | $ | 12,293 | 0.4 | % | 127 | $ | 10,791 | 0.4 | % | 158 | $ | 13,890 | 0.5 | % | 143 | $ | 12,190 | 0.4 | % | |||||||||||||||||||||||||
Home equity loans | 150 | 5,838 | 0.5 | % | 154 | 6,768 | 0.5 | % | 148 | 6,750 | 0.5 | % | 177 | 7,349 | 0.6 | % | 150 | 6,397 | 0.5 | % | ||||||||||||||||||||||||||||||
Consumer finance loans | 16 | 39 | 0.7 | % | 8 | 15 | 0.2 | % | 7 | 3 | — | % | 74 | 199 | 1.1 | % | 124 | 332 | 1.2 | % | ||||||||||||||||||||||||||||||
Consumer loans | 766 | 3,541 | 0.5 | % | 302 | 2,633 | 0.4 | % | 659 | 2,939 | 0.4 | % | 719 | 3,627 | 0.6 | % | 428 | 3,254 | 0.5 | % | ||||||||||||||||||||||||||||||
Commercial real estate loans | 126 | 27,228 | 1.1 | % | 113 | 15,772 | 0.6 | % | 106 | 16,723 | 0.7 | % | 109 | 16,284 | 0.7 | % | 113 | 23,310 | 1.0 | % | ||||||||||||||||||||||||||||||
Commercial loans | 29 | 2,714 | 0.5 | % | 31 | 2,925 | 0.5 | % | 35 | 3,144 | 0.5 | % | 37 | 3,140 | 0.5 | % | 45 | 4,177 | 0.7 | % | ||||||||||||||||||||||||||||||
Total loans delinquent 90 days or more | 1,230 | $ | 52,843 | 0.7 | % | 748 | $ | 40,406 | 0.5 | % | 1,082 | $ | 40,350 | 0.5 | % | 1,274 | $ | 44,489 | 0.6 | % | 1,003 | $ | 49,660 | 0.6 | % | |||||||||||||||||||||||||
Total loans delinquent | 3,403 | $ | 93,571 | 1.2 | % | 2,888 | $ | 80,702 | 1.0 | % | 3,550 | $ | 116,394 | 1.5 | % | 5,089 | $ | 117,504 | 1.5 | % | 4,937 | $ | 101,756 | 1.3 | % | |||||||||||||||||||||||||
* Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
** Includes purchased credit impaired loans of $440,000, $672,000, $760,000, $1.4 million and $1.2 million at September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, respectively.
Northwest Bancshares, Inc. and Subsidiaries
Allowance for loan losses (Unaudited)
(Dollars in thousands)
Quarter ended | |||||||||||||||
September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | |||||||||||
Beginning balance | 57,332 | 55,211 | 56,795 | 56,927 | 62,885 | ||||||||||
Provision | 6,982 | 5,349 | 4,209 | 6,525 | 3,027 | ||||||||||
Charge-offs residential mortgage | (214 | ) | (389 | ) | (201 | ) | (162 | ) | (215 | ) | |||||
Charge-offs home equity | (426 | ) | (406 | ) | (611 | ) | (393 | ) | (528 | ) | |||||
Charge-offs consumer finance | (445 | ) | (486 | ) | (1,553 | ) | (2,900 | ) | (3,891 | ) | |||||
Charge-offs consumer | (3,470 | ) | (2,682 | ) | (3,249 | ) | (3,322 | ) | (3,002 | ) | |||||
Charge-offs commercial real estate | (4,859 | ) | (439 | ) | (551 | ) | (1,470 | ) | (1,901 | ) | |||||
Charge-offs commercial | (985 | ) | (491 | ) | (1,025 | ) | (785 | ) | (509 | ) | |||||
Recoveries | 2,060 | 1,665 | 1,397 | 2,375 | 1,061 | ||||||||||
Ending balance | $ | 55,975 | 57,332 | 55,211 | 56,795 | 56,927 | |||||||||
Net charge-offs to average loans, annualized | 0.42 | % | 0.16 | % | 0.30 | % | 0.34 | % | 0.47 | % | |||||
Nine months ended September 30, | ||||||
2018 | 2017 | |||||
Beginning balance | $ | 56,795 | 60,939 | |||
Provision | 16,540 | 13,226 | ||||
Charge-offs residential mortgage | (804 | ) | (877 | ) | ||
Charge-offs home equity | (1,444 | ) | (1,866 | ) | ||
Charge-offs consumer finance | (2,484 | ) | (5,469 | ) | ||
Charge-offs consumer | (9,401 | ) | (8,601 | ) | ||
Charge-offs commercial real estate | (5,849 | ) | (2,704 | ) | ||
Charge-offs commercial | (2,501 | ) | (2,705 | ) | ||
Recoveries | 5,123 | 4,984 | ||||
Ending balance | $ | 55,975 | 56,927 | |||
0.29 | % | 0.30 | % | |||
Net charge-offs to average loans, annualized | ||||||
September 30, 2018 | ||||||||||||||||||
Originated loans | Acquired loans | Total loans | ||||||||||||||||
Balance | Reserve | Balance | Reserve | Balance | Reserve | |||||||||||||
Residential mortgage loans | $ | 2,749,012 | 4,144 | 97,822 | 102 | 2,846,834 | 4,246 | |||||||||||
Home equity loans | 1,048,373 | 3,234 | 223,972 | 408 | 1,272,345 | 3,642 | ||||||||||||
Legacy consumer finance loans | 5,888 | 1,650 | — | — | 5,888 | 1,650 | ||||||||||||
Consumer loans | 702,941 | 11,021 | 67,220 | 444 | 770,161 | 11,465 | ||||||||||||
Personal Banking Loans | 4,506,214 | 20,049 | 389,014 | 954 | 4,895,228 | 21,003 | ||||||||||||
Commercial real estate loans | 2,277,429 | 25,694 | 240,637 | 2,876 | 2,518,066 | 28,570 | ||||||||||||
Commercial loans | 532,764 | 5,730 | 50,004 | 672 | 582,768 | 6,402 | ||||||||||||
Commercial Banking Loans | 2,810,193 | 31,424 | 290,641 | 3,548 | 3,100,834 | 34,972 | ||||||||||||
Total Loans | $ | 7,316,407 | 51,473 | 679,655 | 4,502 | 7,996,062 | 55,975 | |||||||||||
Northwest Bancshares, Inc. and Subsidiaries
Average balance sheet (Unaudited)
(Dollars in thousands)
The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
Quarter ended | |||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 2,804,027 | 28,974 | 4.13 | % | $ | 2,761,528 | 27,893 | 4.04 | % | $ | 2,756,142 | 27,973 | 4.12 | % | $ | 2,746,992 | 28,373 | 4.13 | % | $ | 2,732,546 | 28,279 | 4.14 | % | ||||||||||||||||||||||||
Home equity loans | 1,272,847 | 15,248 | 4.75 | % | 1,281,001 | 15,384 | 4.82 | % | 1,298,780 | 14,786 | 4.62 | % | 1,312,146 | 15,187 | 4.59 | % | 1,299,473 | 14,694 | 4.49 | % | |||||||||||||||||||||||||||||
Consumer loans | 704,203 | 8,337 | 4.70 | % | 655,541 | 7,949 | 4.86 | % | 637,691 | 7,450 | 4.74 | % | 633,023 | 8,004 | 5.02 | % | 617,754 | 7,627 | 4.90 | % | |||||||||||||||||||||||||||||
Consumer finance loans | 7,176 | 343 | 19.12 | % | 10,428 | 516 | 19.79 | % | 15,254 | 768 | 20.14 | % | 22,469 | 1,151 | 20.32 | % | 33,469 | 1,433 | 17.13 | % | |||||||||||||||||||||||||||||
Commercial real estate loans | 2,540,270 | 29,974 | 4.62 | % | 2,518,170 | 29,034 | 4.56 | % | 2,471,422 | 27,384 | 4.43 | % | 2,442,528 | 28,251 | 4.53 | % | 2,389,969 | 27,234 | 4.46 | % | |||||||||||||||||||||||||||||
Commercial loans | 598,842 | 8,203 | 5.36 | % | 624,087 | 7,703 | 4.88 | % | 595,276 | 7,160 | 4.81 | % | 588,420 | 6,739 | 4.48 | % | 593,143 | 6,659 | 4.39 | % | |||||||||||||||||||||||||||||
Total loans receivable (a) (b) (d) | 7,927,365 | 91,079 | 4.56 | % | 7,850,755 | 88,479 | 4.52 | % | 7,774,565 | 85,521 | 4.46 | % | 7,745,578 | 87,705 | 4.49 | % | 7,666,354 | 85,926 | 4.45 | % | |||||||||||||||||||||||||||||
Mortgage-backed securities (c) | 598,596 | 3,572 | 2.39 | % | 569,893 | 3,255 | 2.28 | % | 558,055 | 3,013 | 2.16 | % | 581,055 | 3,016 | 2.08 | % | 607,454 | 3,118 | 2.05 | % | |||||||||||||||||||||||||||||
Investment securities (c) (d) | 244,346 | 1,074 | 1.76 | % | 235,784 | 1,044 | 1.77 | % | 256,287 | 1,172 | 1.83 | % | 301,268 | 1,495 | 1.98 | % | 352,813 | 1,690 | 1.92 | % | |||||||||||||||||||||||||||||
FHLB stock | 9,819 | 119 | 4.81 | % | 7,819 | 85 | 4.36 | % | 9,354 | 97 | 4.21 | % | 10,066 | 78 | 3.07 | % | 7,748 | 63 | 3.23 | % | |||||||||||||||||||||||||||||
Other interest-earning deposits | 26,057 | 162 | 2.43 | % | 103,739 | 469 | 1.79 | % | 34,200 | 135 | 1.58 | % | 13,515 | 59 | 1.71 | % | 71,482 | 243 | 1.33 | % | |||||||||||||||||||||||||||||
Total interest-earning assets | 8,806,183 | 96,006 | 4.33 | % | 8,767,990 | 93,332 | 4.27 | % | 8,632,461 | 89,938 | 4.23 | % | 8,651,482 | 92,353 | 4.24 | % | 8,705,851 | 91,040 | 4.15 | % | |||||||||||||||||||||||||||||
Noninterest earning assets (e) | 746,077 | 732,065 | 779,812 | 709,753 | 755,026 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 9,552,260 | $ | 9,500,055 | $ | 9,412,273 | $ | 9,361,235 | $ | 9,460,877 | |||||||||||||||||||||||||||||||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Savings deposits | $ | 1,672,990 | 785 | 0.19 | % | $ | 1,699,168 | 773 | 0.18 | % | $ | 1,670,491 | 749 | 0.18 | % | $ | 1,655,798 | 763 | 0.18 | % | $ | 1,681,777 | 776 | 0.18 | % | ||||||||||||||||||||||||
Interest-bearing demand deposits | 1,460,556 | 1,064 | 0.29 | % | 1,468,228 | 875 | 0.24 | % | 1,419,459 | 603 | 0.17 | % | 1,419,352 | 331 | 0.09 | % | 1,435,143 | 297 | 0.08 | % | |||||||||||||||||||||||||||||
Money market deposit accounts | 1,685,368 | 1,565 | 0.37 | % | 1,691,652 | 1,211 | 0.29 | % | 1,706,800 | 1,053 | 0.25 | % | 1,734,444 | 1,017 | 0.23 | % | 1,789,082 | 1,048 | 0.23 | % | |||||||||||||||||||||||||||||
Time deposits | 1,403,967 | 4,819 | 1.36 | % | 1,440,457 | 4,450 | 1.24 | % | 1,415,247 | 4,053 | 1.16 | % | 1,421,569 | 3,860 | 1.08 | % | 1,449,830 | 3,674 | 1.01 | % | |||||||||||||||||||||||||||||
Borrowed funds (f) | 129,523 | 239 | 0.73 | % | 104,415 | 50 | 0.19 | % | 133,231 | 124 | 0.38 | % | 159,599 | 187 | 0.46 | % | 106,282 | 49 | 0.18 | % | |||||||||||||||||||||||||||||
Junior subordinated debentures | 111,213 | 1,316 | 4.63 | % | 111,213 | 1,290 | 4.59 | % | 111,213 | 1,184 | 4.26 | % | 111,213 | 1,163 | 4.09 | % | 111,213 | 1,150 | 4.05 | % | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 6,463,617 | 9,788 | 0.60 | % | 6,515,133 | 8,649 | 0.53 | % | 6,456,441 | 7,766 | 0.49 | % | 6,501,975 | 7,321 | 0.45 | % | 6,573,327 | 6,994 | 0.42 | % | |||||||||||||||||||||||||||||
Noninterest-bearing demand deposits (g) | 1,724,427 | 1,676,344 | 1,606,247 | 1,599,834 | 1,573,112 | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest bearing liabilities | 132,062 | 92,252 | 143,608 | 57,956 | 116,021 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 8,320,106 | 8,283,729 | 8,206,296 | 8,159,765 | 8,262,460 | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 1,232,154 | 1,216,326 | 1,205,977 | 1,201,470 | 1,198,417 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 9,552,260 | $ | 9,500,055 | $ | 9,412,273 | $ | 9,361,235 | $ | 9,460,877 | |||||||||||||||||||||||||||||||||||||||
Net interest income/ Interest rate spread | 86,218 | 3.73 | % | 84,683 | 3.74 | % | 82,172 | 3.74 | % | 85,032 | 3.79 | % | 84,046 | 3.73 | % | ||||||||||||||||||||||||||||||||||
Net interest-earning assets/ Net interest margin | $ | 2,342,566 | 3.92 | % | $ | 2,252,857 | 3.86 | % | $ | 2,176,020 | 3.86 | % | $ | 2,149,507 | 3.93 | % | $ | 2,132,524 | 3.86 | % | |||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.36X | 1.35X | 1.34X | 1.33X | 1.32X | ||||||||||||||||||||||||||||||||||||||||||||
(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) Average cost of deposits were 0.41%, 0.37%, 0.33%, 0.30% and 0.29%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.54%, 4.50%, 4.45%, 4.46% and 4.42%, respectively, Investment securities - 1.67%, 1.63%, 1.67%, 1.66% and 1.62%, respectively, Interest-earning assets - 4.31%, 4.25%, 4.21%, 4.20% and 4.11%, respectively. GAAP basis net interest rate spreads were 3.71%, 3.72%, 3.72%, 3.75% and 3.69%, respectively, and GAAP basis net interest margins were 3.90%, 3.84%, 3.84%, 3.89% and 3.82%, respectively.
10
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.
Nine months ended September 30, | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
Average balance | Interest | Avg. yield/ cost (h) | Average balance | Interest | Avg. yield/ cost (h) | ||||||||||||||
Assets: | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Residential mortgage loans | $ | 2,774,074 | 84,585 | 4.07 | % | $ | 2,724,348 | 83,833 | 4.10 | % | |||||||||
Home equity loans | 1,284,114 | 45,617 | 4.75 | % | 1,314,344 | 43,239 | 4.40 | % | |||||||||||
Consumer loans | 666,055 | 23,788 | 4.78 | % | 598,056 | 22,251 | 4.97 | % | |||||||||||
Consumer finance loans | 10,923 | 1,627 | 19.86 | % | 40,241 | 6,025 | 19.96 | % | |||||||||||
Commercial real estate loans | 2,510,206 | 86,188 | 4.53 | % | 2,425,302 | 80,867 | 4.40 | % | |||||||||||
Commercial loans | 606,076 | 23,273 | 5.06 | % | 560,677 | 18,260 | 4.29 | % | |||||||||||
Loans receivable (a) (b) (d) | 7,851,448 | 265,078 | 4.51 | % | 7,662,968 | 254,475 | 4.44 | % | |||||||||||
Mortgage-backed securities (c) | 575,663 | 9,839 | 2.28 | % | 557,846 | 8,327 | 1.99 | % | |||||||||||
Investment securities (c) (d) | 245,429 | 3,289 | 1.79 | % | 367,585 | 5,366 | 1.95 | % | |||||||||||
FHLB stock | 8,999 | 301 | 4.47 | % | 7,553 | 172 | 3.04 | % | |||||||||||
Other interest-earning deposits | 53,254 | 766 | 1.90 | % | 201,643 | 1,440 | 0.94 | % | |||||||||||
Total interest-earning assets | 8,734,793 | 279,273 | 4.27 | % | 8,797,595 | 269,780 | 4.10 | % | |||||||||||
Noninterest earning assets (e) | 753,403 | 742,837 | |||||||||||||||||
Total assets | $ | 9,488,196 | $ | 9,540,432 | |||||||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Savings deposits | $ | 1,680,892 | 2,307 | 0.18 | % | $ | 1,699,455 | 2,300 | 0.18 | % | |||||||||
Interest-bearing demand deposits | 1,449,573 | 2,541 | 0.23 | % | 1,436,442 | 696 | 0.06 | % | |||||||||||
Money market deposit accounts | 1,694,519 | 3,830 | 0.30 | % | 1,835,638 | 3,186 | 0.23 | % | |||||||||||
Time deposits | 1,419,849 | 13,322 | 1.25 | % | 1,513,565 | 10,904 | 0.96 | % | |||||||||||
Borrowed funds (f) | 122,376 | 412 | 0.45 | % | 123,168 | 161 | 0.17 | % | |||||||||||
Junior subordinated debentures | 111,213 | 3,791 | 4.50 | % | 111,213 | 3,503 | 4.15 | % | |||||||||||
Total interest-bearing liabilities | 6,478,422 | 26,203 | 0.54 | % | 6,719,481 | 20,750 | 0.41 | % | |||||||||||
Noninterest-bearing demand deposits (g) | 1,669,423 | 1,541,845 | |||||||||||||||||
Noninterest bearing liabilities | 122,199 | 94,546 | |||||||||||||||||
Total liabilities | 8,270,044 | 8,355,872 | |||||||||||||||||
Shareholders’ equity | 1,218,152 | 1,184,560 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 9,488,196 | $ | 9,540,432 | |||||||||||||||
Net interest income/ Interest rate spread | 253,070 | 3.73 | % | 249,030 | 3.69 | % | |||||||||||||
Net interest-earning assets/ Net interest margin | $ | 2,256,371 | 3.86 | % | $ | 2,078,114 | 3.77 | % | |||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.35X | 1.31X | |||||||||||||||||
(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) Average cost of deposits were 0.37.% and 0.28%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.50% and 4.41%, respectively, Investment securities - 1.66% and 1.64%, respectively, Interest-earning assets - 4.26% and 4.06%, respectively. GAAP basis net interest rate spreads were 3.71% and 3.65%, respectively, and GAAP basis net interest margins were 3.84% and 3.74%, respectively.