Attached files
| file | filename |
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| 8-K - 8-K - Northwest Bancshares, Inc. | nwbi2018-12x31ercover.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 Fourth Quarter 2018 Earnings and Quarterly Dividend Increase
Warren, Pennsylvania — January 22, 2019
Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2018 of $26.5 million, or $0.26 per diluted share. This represents an increase of $4.3 million, or 19.5%, compared to the same quarter last year when net income was $22.1 million or $0.22 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended December 31, 2018 were 8.44% and 1.09% compared to 7.31% and 0.94% for the same quarter last year.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.18 per share payable on February 14, 2019, to shareholders of record as of February 1, 2019. This is a 5.9% increase over the prior quarter and represents the 97th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of December 31, 2018, this dividend represents an annualized yield of approximately 4.25%.
In making this announcement, Ronald J. Seiffert, President and CEO, noted, "We are very pleased with both the fourth quarter and annual results for 2018 and are equally excited about our momentum going into 2019. Despite the challenges that we and most of the industry have been facing regarding commercial loan growth and elevated payoff levels, we were pleased that many of these payoffs allowed us to reduce our substandard loans by over $54 million, or 22.7%. We were still able to grow loans by $258 million, or 3.3%, during the year because of our diversity and ability to augment our commercial loan growth with both direct and indirect retail lending. Our net interest margin remained flat for the year at a healthy 3.94%, despite four market rate increases and a flattening yield curve. Finally, having now received all regulatory approvals, we look forward to closing the acquisition and conversion of Union Community Bank on the weekend of March 8, 2019 and to welcoming their employees and customers to the Northwest family."
Net interest income increased by $2.6 million, or 3.1%, to $86.8 million for the quarter ended December 31, 2018, from $84.2 million for the quarter ended December 31, 2017. This increase is due primarily to a $5.4 million, or 6.1%, increase in interest income on loans receivable and a $926,000, or 30.7%, increase in interest income on mortgage-backed securities. These increases were primarily due to increases of $234.8 million, or 3.0%, and $38.0 million, or 6.5%, in the average balances of loans and mortgage-backed securities, respectively. Additionally, the average yield on loans and mortgage-backed securities increased by 12 and 47 basis points, respectively, over the prior year.
The provision for loan losses decreased by $2.7 million, or 41.9%, to $3.8 million for the quarter ended December 31, 2018, from $6.5 million for the quarter ended December 31, 2017. This decrease is due primarily to a reduction in loans risk rated as substandard of $53.7 million, or 22.7%, from $237.8 million at December 31, 2017 to $184.1 million at December 31, 2018.
Noninterest income increased by $343,000, or 1.5%, to $23.2 million for the quarter ended December 31, 2018, from $22.9 million for the quarter ended December 31, 2017. Contributing to this increase was a $658,000 increase in other operating income as a result of fees earned from debit/credit card volume-based incentives and a $300,000 increase in income from service charges and fees as a result of increased transaction volume. Additionally, the Company realized a gain of $4,000 on the sale of investments during the quarter ended December 31, 2018 as compared to a loss of $369,000 a year ago. Partially offsetting these increases was a decrease in income from bank owned life insurance of $1.3 million as a result of death benefits received during the prior year.
Noninterest expense increased by $377,000, or 0.5%, to $72.3 million for the quarter ended December 31, 2018, from $71.9 million for the quarter ended December 31, 2017. This increase resulted primarily from a $1.4 million, or 56.7%, increase in other expense due primarily to an increase in the reserve for unfunded loan commitments. Partially offsetting this increase was a decline in premises and occupancy costs of $726,000, or 10.0%, and a decline in office operations expense of $556,000, or 13.9%, primarily as a result of initiatives made during 2017 such as the sale of the Maryland branches, closure of the consumer finance company and divestiture of the retirement services subsidiary, the full benefits of which were recognized in 2018.
Income tax expense increased by $971,000, or 14.8%, to $7.5 million for the quarter ended December 31, 2018, from $6.6 million for the quarter ended December 31, 2017. This increase resulted primarily from an increase in income before taxes of $5.3 million, or 18.4%, to $34.0 million for the quarter ended December 31, 2018 from $28.7 million for the quarter ended December 31, 2017.
Net income for the year ended December 31, 2018 was $105.5 million, or $1.02 per diluted share, which represents an increase of $11.0 million, or 11.7%, compared to the year ended December 31, 2017, when net income was $94.5 million, or $0.92 per diluted share. The returns on average shareholders’ equity and average assets for the year ended December 31, 2018 were 8.61% and 1.11%, respectively, compared to 7.95% and 0.99% for the same period last year. This increase in net income was the result of an increase in net interest income after provision for loan losses of $7.3 million, or 2.3%, a decrease in noninterest expense of $9.5 million, or 3.3%, and a lower effective tax rate as prescribed by 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)
December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||
Assets | |||||||||
Cash and cash equivalents | $ | 68,789 | 73,946 | 77,710 | |||||
Marketable securities available-for-sale (amortized cost of $811,015, $829,345 and $800,094, respectively) | 801,450 | 811,556 | 792,535 | ||||||
Marketable securities held-to-maturity (fair value of $22,446, $23,534 and $29,667, respectively) | 22,765 | 24,222 | 29,678 | ||||||
Total cash and cash equivalents and marketable securities | 893,004 | 909,724 | 899,923 | ||||||
Residential mortgage loans held-for-sale | — | — | 3,128 | ||||||
Residential mortgage loans | 2,864,470 | 2,846,834 | 2,773,075 | ||||||
Home equity loans | 1,258,422 | 1,272,345 | 1,310,355 | ||||||
Consumer loans | 859,713 | 776,049 | 671,389 | ||||||
Commercial real estate loans | 2,471,821 | 2,518,066 | 2,454,726 | ||||||
Commercial loans | 597,013 | 582,768 | 580,736 | ||||||
Total loans receivable | 8,051,439 | 7,996,062 | 7,793,409 | ||||||
Allowance for loan losses | (55,214 | ) | (55,975 | ) | (56,795 | ) | |||
Loans receivable, net | 7,996,225 | 7,940,087 | 7,736,614 | ||||||
Federal Home Loan Bank stock, at cost | 15,635 | 15,452 | 11,733 | ||||||
Accrued interest receivable | 24,490 | 25,798 | 23,352 | ||||||
Real estate owned, net | 2,498 | 2,486 | 5,666 | ||||||
Premises and equipment, net | 143,390 | 144,612 | 151,944 | ||||||
Bank owned life insurance | 171,079 | 170,042 | 171,547 | ||||||
Goodwill | 307,420 | 307,420 | 307,420 | ||||||
Other intangible assets | 19,821 | 21,167 | 25,669 | ||||||
Other assets | 34,211 | 38,543 | 30,066 | ||||||
Total assets | $ | 9,607,773 | 9,575,331 | 9,363,934 | |||||
Liabilities and Shareholders’ equity | |||||||||
Liabilities | |||||||||
Noninterest-bearing demand deposits | $ | 1,736,156 | 1,724,202 | 1,610,409 | |||||
Interest-bearing demand deposits | 1,455,460 | 1,499,344 | 1,442,928 | ||||||
Money market deposit accounts | 1,661,623 | 1,676,845 | 1,707,450 | ||||||
Savings deposits | 1,636,099 | 1,650,357 | 1,653,579 | ||||||
Time deposits | 1,404,841 | 1,403,205 | 1,412,623 | ||||||
Total deposits | 7,894,179 | 7,953,953 | 7,826,989 | ||||||
Borrowed funds | 234,389 | 179,117 | 108,238 | ||||||
Advances by borrowers for taxes and insurance | 43,298 | 23,297 | 40,825 | ||||||
Accrued interest payable | 744 | 627 | 460 | ||||||
Other liabilities | 66,312 | 66,448 | 68,485 | ||||||
Junior subordinated debentures | 111,213 | 111,213 | 111,213 | ||||||
Total liabilities | 8,350,135 | 8,334,655 | 8,156,210 | ||||||
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, 103,354,030 shares, 103,293,480 shares, and 102,394,828 issued and outstanding, respectively | 1,034 | 1,033 | 1,027 | ||||||
Paid-in-capital | 745,926 | 742,863 | 730,719 | ||||||
Retained earnings | 550,374 | 541,469 | 508,058 | ||||||
Accumulated other comprehensive loss | (39,696 | ) | (44,689 | ) | (32,080 | ) | |||
Total shareholders’ equity | 1,257,638 | 1,240,676 | 1,207,724 | ||||||
Total liabilities and shareholders’ equity | $ | 9,607,773 | 9,575,331 | 9,363,934 | |||||
Equity to assets | 13.09 | % | 12.96 | % | 12.90 | % | |||
Tangible common equity to assets | 10.03 | % | 9.86 | % | 9.68 | % | |||
Book value per share | $ | 12.17 | 12.01 | 11.79 | |||||
Tangible book value per share | $ | 9.00 | 8.83 | 8.54 | |||||
Closing market price per share | $ | 16.94 | 17.32 | 16.73 | |||||
Full time equivalent employees | 2,128 | 2,133 | 2,106 | ||||||
Number of banking offices | 172 | 172 | 172 | ||||||
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share amounts)
Quarter ended | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
2018 | 2018 | 2018 | 2018 | 2017 | |||||||||||
Interest income: | |||||||||||||||
Loans receivable | $ | 92,512 | 90,733 | 88,106 | 85,220 | 87,154 | |||||||||
Mortgage-backed securities | 3,942 | 3,572 | 3,254 | 3,013 | 3,016 | ||||||||||
Taxable investment securities | 924 | 814 | 648 | 678 | 805 | ||||||||||
Tax-free investment securities | 170 | 205 | 313 | 390 | 449 | ||||||||||
FHLB dividends | 151 | 119 | 85 | 97 | 78 | ||||||||||
Interest-earning deposits | 69 | 162 | 469 | 135 | 59 | ||||||||||
Total interest income | 97,768 | 95,605 | 92,875 | 89,533 | 91,561 | ||||||||||
Interest expense: | |||||||||||||||
Deposits | 8,985 | 8,233 | 7,309 | 6,458 | 5,971 | ||||||||||
Borrowed funds | 1,952 | 1,555 | 1,340 | 1,308 | 1,350 | ||||||||||
Total interest expense | 10,937 | 9,788 | 8,649 | 7,766 | 7,321 | ||||||||||
Net interest income | 86,831 | 85,817 | 84,226 | 81,767 | 84,240 | ||||||||||
Provision for loan losses | 3,792 | 6,982 | 5,349 | 4,209 | 6,525 | ||||||||||
Net interest income after provision for loan losses | 83,039 | 78,835 | 78,877 | 77,558 | 77,715 | ||||||||||
Noninterest income: | |||||||||||||||
Gain/ (loss) on sale of investments | 4 | — | — | 153 | (369 | ) | |||||||||
Service charges and fees | 12,827 | 13,158 | 12,908 | 11,899 | 12,527 | ||||||||||
Trust and other financial services income | 4,246 | 4,254 | 4,050 | 4,031 | 4,290 | ||||||||||
Insurance commission income | 1,906 | 2,046 | 2,090 | 2,749 | 1,874 | ||||||||||
Gain/ (loss) on real estate owned, net | (14 | ) | (247 | ) | 176 | (546 | ) | (307 | ) | ||||||
Income from bank owned life insurance | 1,038 | 1,460 | 2,333 | 990 | 2,295 | ||||||||||
Mortgage banking income | 213 | 82 | 77 | 224 | 225 | ||||||||||
Other operating income | 3,028 | 1,804 | 2,475 | 2,288 | 2,370 | ||||||||||
Total noninterest income | 23,248 | 22,557 | 24,109 | 21,788 | 22,905 | ||||||||||
Noninterest expense: | |||||||||||||||
Compensation and employee benefits | 39,319 | 37,535 | 39,031 | 36,510 | 39,293 | ||||||||||
Premises and occupancy costs | 6,567 | 6,821 | 6,824 | 7,307 | 7,293 | ||||||||||
Office operations | 3,455 | 3,508 | 3,768 | 3,408 | 4,011 | ||||||||||
Collections expense | 780 | 483 | 434 | 512 | 1,179 | ||||||||||
Processing expenses | 10,160 | 9,620 | 9,560 | 9,706 | 9,888 | ||||||||||
Marketing expenses | 2,331 | 1,949 | 2,014 | 2,140 | 2,125 | ||||||||||
Federal deposit insurance premiums | 637 | 721 | 671 | 717 | 724 | ||||||||||
Professional services | 3,134 | 2,368 | 2,819 | 2,277 | 2,945 | ||||||||||
Amortization of intangible assets | 1,346 | 1,462 | 1,520 | 1,520 | 1,575 | ||||||||||
Real estate owned expense | 187 | 205 | 133 | 292 | 195 | ||||||||||
Restructuring/ acquisition expense | 435 | 186 | 393 | — | 164 | ||||||||||
Other expense | 3,922 | 1,759 | 2,620 | 3,032 | 2,504 | ||||||||||
Total noninterest expense | 72,273 | 66,617 | 69,787 | 67,421 | 71,896 | ||||||||||
Income before income taxes | 34,014 | 34,775 | 33,199 | 31,925 | 28,724 | ||||||||||
Income tax expense | 7,547 | 7,035 | 6,900 | 6,940 | 6,576 | ||||||||||
Net income | $ | 26,467 | 27,740 | 26,299 | 24,985 | 22,148 | |||||||||
Basic earnings per share | $ | 0.26 | 0.27 | 0.26 | 0.25 | 0.22 | |||||||||
Diluted earnings per share | $ | 0.26 | 0.27 | 0.25 | 0.24 | 0.22 | |||||||||
Weighted average common shares outstanding - basic | 102,479,086 | 102,334,954 | 101,870,043 | 101,598,928 | 101,293,307 | ||||||||||
Weighted average common shares outstanding - diluted | 103,749,383 | 103,942,695 | 103,424,154 | 103,136,497 | 102,643,726 | ||||||||||
Annualized return on average equity | 8.44 | % | 8.93 | % | 8.67 | % | 8.40 | % | 7.31 | % | |||||
Annualized return on average assets | 1.09 | % | 1.15 | % | 1.11 | % | 1.08 | % | 0.94 | % | |||||
Annualized return on tangible common equity | 11.29 | % | 12.07 | % | 11.74 | % | 11.47 | % | 10.05 | % | |||||
Efficiency ratio * | 64.04 | % | 59.95 | % | 62.65 | % | 63.64 | % | 65.48 | % | |||||
Annualized noninterest expense to average assets * | 2.91 | % | 2.70 | % | 2.87 | % | 2.84 | % | 2.97 | % | |||||
* Excludes gain on sale of offices, 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)
Year ended December 31, | ||||||
2018 | 2017 | |||||
Interest income: | ||||||
Loans receivable | $ | 356,571 | 339,992 | |||
Mortgage-backed securities | 13,781 | 11,343 | ||||
Taxable investment securities | 3,064 | 3,749 | ||||
Tax-free investment securities | 1,078 | 2,023 | ||||
FHLB dividends | 452 | 250 | ||||
Interest-earning deposits | 835 | 1,499 | ||||
Total interest income | 375,781 | 358,856 | ||||
Interest expense: | ||||||
Deposits | 30,985 | 23,057 | ||||
Borrowed funds | 6,155 | 5,014 | ||||
Total interest expense | 37,140 | 28,071 | ||||
Net interest income | 338,641 | 330,785 | ||||
Provision for loan losses | 20,332 | 19,751 | ||||
Net interest income after provision for loan losses | 318,309 | 311,034 | ||||
Noninterest income: | ||||||
Gain on sale of investments | 157 | 1,148 | ||||
Service charges and fees | 50,792 | 49,717 | ||||
Trust and other financial services income | 16,581 | 17,987 | ||||
Insurance commission income | 8,791 | 9,013 | ||||
Loss on real estate owned, net | (631 | ) | (797 | ) | ||
Income from bank owned life insurance | 5,821 | 6,093 | ||||
Mortgage banking income | 596 | 1,418 | ||||
Gain on sale of offices | — | 17,186 | ||||
Other operating income | 9,595 | 8,715 | ||||
Total noninterest income | 91,702 | 110,480 | ||||
Noninterest expense: | ||||||
Compensation and employee benefits | 152,395 | 150,228 | ||||
Premises and occupancy costs | 27,519 | 28,863 | ||||
Office operations | 14,139 | 16,342 | ||||
Collections expense | 2,209 | 2,849 | ||||
Processing expenses | 39,046 | 39,086 | ||||
Marketing expenses | 8,434 | 9,607 | ||||
Federal deposit insurance premiums | 2,746 | 3,518 | ||||
Professional services | 10,598 | 10,293 | ||||
Amortization of intangible assets | 5,848 | 6,764 | ||||
Real estate owned expense | 817 | 1,004 | ||||
Restructuring/ acquisition expense | 1,014 | 4,419 | ||||
Other expense | 11,333 | 12,630 | ||||
Total noninterest expense | 276,098 | 285,603 | ||||
Income before income taxes | 133,913 | 135,911 | ||||
Income tax expense | 28,422 | 41,444 | ||||
Net income | $ | 105,491 | 94,467 | |||
Basic earnings per share | $ | 1.03 | 0.94 | |||
Diluted earnings per share | $ | 1.02 | 0.92 | |||
Weighted average common shares outstanding - basic | 102,073,888 | 101,015,083 | ||||
Weighted average common shares outstanding - diluted | 103,565,901 | 102,564,905 | ||||
Annualized return on average equity | 8.61 | % | 7.95 | % | ||
Annualized return on average assets | 1.11 | % | 0.99 | % | ||
Annualized return on tangible common equity | 11.34 | % | 10.80 | % | ||
Efficiency ratio * | 62.56 | % | 64.71 | % | ||
Annualized noninterest expense to average assets * | 2.83 | % | 2.89 | % | ||
* 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)
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||
Nonaccrual loans current: | |||||||||||||||
Residential mortgage loans | $ | 264 | 869 | 669 | 123 | 70 | |||||||||
Home equity loans | 437 | 496 | 237 | 269 | 615 | ||||||||||
Consumer loans | 196 | 126 | 218 | 178 | 317 | ||||||||||
Commercial real estate loans | 9,947 | 10,905 | 14,814 | 11,355 | 10,080 | ||||||||||
Commercial loans | 4,736 | 1,972 | 2,559 | 2,381 | 4,178 | ||||||||||
Total nonaccrual loans current | $ | 15,580 | 14,368 | 18,497 | 14,306 | 15,260 | |||||||||
Nonaccrual loans delinquent 30 days to 59 days: | |||||||||||||||
Residential mortgage loans | $ | 1,358 | 15 | 89 | 1,290 | 509 | |||||||||
Home equity loans | 266 | 333 | 221 | 232 | 167 | ||||||||||
Consumer loans | 294 | 182 | 192 | 224 | 239 | ||||||||||
Commercial real estate loans | 219 | 3,124 | 522 | 975 | 1,928 | ||||||||||
Commercial loans | 23 | 150 | 51 | 140 | 25 | ||||||||||
Total nonaccrual loans delinquent 30 days to 59 days | $ | 2,160 | 3,804 | 1,075 | 2,861 | 2,868 | |||||||||
Nonaccrual loans delinquent 60 days to 89 days: | |||||||||||||||
Residential mortgage loans | $ | 1,262 | 547 | 668 | 755 | 703 | |||||||||
Home equity loans | 376 | 418 | 483 | 465 | 874 | ||||||||||
Consumer loans | 582 | 464 | 194 | 224 | 500 | ||||||||||
Commercial real estate loans | 1,260 | 1,872 | 1,682 | 399 | 1,104 | ||||||||||
Commercial loans | 332 | 352 | 380 | 80 | 69 | ||||||||||
Total nonaccrual loans delinquent 60 days to 89 days | $ | 3,812 | 3,653 | 3,407 | 1,923 | 3,250 | |||||||||
Nonaccrual loans delinquent 90 days or more: | |||||||||||||||
Residential mortgage loans | $ | 12,965 | 13,154 | 11,822 | 10,660 | 13,509 | |||||||||
Home equity loans | 5,996 | 5,838 | 6,729 | 6,707 | 7,251 | ||||||||||
Consumer finance loans | 22 | 39 | 15 | 3 | 199 | ||||||||||
Consumer loans | 3,228 | 3,535 | 2,626 | 2,931 | 3,617 | ||||||||||
Commercial real estate loans | 25,509 | 27,122 | 15,617 | 16,145 | 15,361 | ||||||||||
Commercial loans | 3,010 | 2,714 | 2,925 | 3,144 | 3,140 | ||||||||||
Total nonaccrual loans delinquent 90 days or more | $ | 50,730 | 52,402 | 39,734 | 39,590 | 43,077 | |||||||||
Total nonaccrual loans | $ | 72,282 | 74,227 | 62,713 | 58,680 | 64,455 | |||||||||
Total nonaccrual loans | $ | 72,282 | 74,227 | 62,713 | 58,680 | 64,455 | |||||||||
Loans 90 days past maturity and still accruing | 166 | 195 | 94 | 210 | 502 | ||||||||||
Nonperforming loans | 72,448 | 74,422 | 62,807 | 58,890 | 64,957 | ||||||||||
Real estate owned, net | 2,498 | 2,486 | 2,722 | 4,041 | 5,666 | ||||||||||
Nonperforming assets | $ | 74,946 | 76,908 | 65,529 | 62,931 | 70,623 | |||||||||
Nonaccrual troubled debt restructuring * | $ | 15,306 | 9,777 | 10,860 | 11,217 | 12,285 | |||||||||
Accruing troubled debt restructuring | 18,302 | 19,370 | 19,802 | 19,749 | 19,819 | ||||||||||
Total troubled debt restructuring | $ | 33,608 | 29,147 | 30,662 | 30,966 | 32,104 | |||||||||
Nonperforming loans to total loans | 0.90 | % | 0.93 | % | 0.79 | % | 0.75 | % | 0.83 | % | |||||
Nonperforming assets to total assets | 0.78 | % | 0.80 | % | 0.69 | % | 0.66 | % | 0.75 | % | |||||
Allowance for loan losses to total loans | 0.69 | % | 0.70 | % | 0.72 | % | 0.70 | % | 0.73 | % | |||||
Allowance for loan losses to nonperforming loans | 76.21 | % | 75.21 | % | 91.28 | % | 93.75 | % | 87.43 | % | |||||
* Amounts included in nonperforming loans above.
Northwest Bancshares, Inc. and Subsidiaries
Loans by credit quality indicators (Unaudited)
(Dollars in thousands)
At December 31, 2018 | Pass | Special mention * | Substandard ** | Doubtful | Loss | Loans receivable | |||||||||||||
Personal Banking: | |||||||||||||||||||
Residential mortgage loans | $ | 2,853,460 | — | 11,010 | — | — | 2,864,470 | ||||||||||||
Home equity loans | 1,251,518 | — | 6,904 | — | — | 1,258,422 | |||||||||||||
Consumer loans | 855,277 | — | 4,436 | — | — | 859,713 | |||||||||||||
Total Personal Banking | 4,960,255 | — | 22,350 | — | — | 4,982,605 | |||||||||||||
Commercial Banking: | |||||||||||||||||||
Commercial real estate loans | 2,254,350 | 94,688 | 122,783 | — | — | 2,471,821 | |||||||||||||
Commercial loans | 538,762 | 19,281 | 38,970 | — | — | 597,013 | |||||||||||||
Total Commercial Banking | 2,793,112 | 113,969 | 161,753 | — | — | 3,068,834 | |||||||||||||
Total loans | $ | 7,753,367 | 113,969 | 184,103 | — | — | 8,051,439 | ||||||||||||
At September 30, 2018 | |||||||||||||||||||
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 | ||||||||||||
* Includes $7.1 million, $9.2 million, $9.5 million, $7.9 million, and $8.6 million of acquired loans at December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018, and December 31, 2017, respectively.
** Includes $39.3 million, $45.3 million, $44.5 million, $45.2 million, and $46.7 million of acquired loans at December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018, and December 31, 2017, respectively.
Northwest Bancshares, Inc. and Subsidiaries
Loan delinquency (Unaudited)
(Dollars in thousands)
December 31, 2018 | * | September 30, 2018 | * | June 30, 2018 | * | March 31, 2018 | * | December 31, 2017 | * | |||||||||||||||||||||||||||||||||||||||||
(Number of loans and dollar amount of loans) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30 days to 59 days: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 333 | $ | 27,777 | 1.0 | % | 27 | $ | 1,500 | 0.1 | % | 30 | $ | 1,561 | 0.1 | % | 319 | $ | 27,403 | 1.0 | % | 317 | $ | 25,784 | 0.9 | % | |||||||||||||||||||||||||
Home equity loans | 233 | 8,649 | 0.7 | % | 184 | 5,673 | 0.4 | % | 184 | 6,383 | 0.5 | % | 200 | 7,406 | 0.6 | % | 218 | 7,461 | 0.6 | % | ||||||||||||||||||||||||||||||
Consumer finance loans | 327 | 661 | 17.3 | % | 280 | 632 | 10.7 | % | 306 | 711 | 8.1 | % | 477 | 1,288 | 10.3 | % | 849 | 2,128 | 11.4 | % | ||||||||||||||||||||||||||||||
Consumer loans | 1,073 | 9,447 | 1.1 | % | 984 | 8,408 | 1.1 | % | 901 | 8,855 | 1.3 | % | 871 | 8,252 | 1.2 | % | 1,295 | 10,912 | 1.7 | % | ||||||||||||||||||||||||||||||
Commercial real estate loans | 37 | 5,503 | 0.2 | % | 36 | 5,386 | 0.2 | % | 40 | 5,898 | 0.2 | % | 58 | 20,303 | 0.8 | % | 53 | 8,315 | 0.3 | % | ||||||||||||||||||||||||||||||
Commercial loans | 21 | 973 | 0.2 | % | 17 | 622 | 0.1 | % | 24 | 1,000 | 0.2 | % | 35 | 2,912 | 0.5 | % | 26 | 1,865 | 0.3 | % | ||||||||||||||||||||||||||||||
Total loans delinquent 30 days to 59 days | 2,024 | $ | 53,010 | 0.7 | % | 1,528 | $ | 22,221 | 0.3 | % | 1,485 | $ | 24,408 | 0.3 | % | 1,960 | $ | 67,564 | 0.9 | % | 2,758 | $ | 56,465 | 0.7 | % | |||||||||||||||||||||||||
Loans delinquent 60 days to 89 days: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 71 | $ | 6,425 | 0.2 | % | 61 | 4,704 | 0.2 | % | 62 | $ | 5,847 | 0.2 | % | 21 | $ | 1,943 | 0.1 | % | 75 | $ | 6,235 | 0.2 | % | ||||||||||||||||||||||||||
Home equity loans | 63 | 2,065 | 0.2 | % | 69 | 2,536 | 0.2 | % | 73 | 2,495 | 0.2 | % | 52 | 2,040 | 0.2 | % | 72 | 2,871 | 0.2 | % | ||||||||||||||||||||||||||||||
Consumer finance loans | 86 | 172 | 4.5 | % | 112 | 234 | 4.0 | % | 127 | 277 | 3.2 | % | 109 | 233 | 1.9 | % | 412 | 1,113 | 6.0 | % | ||||||||||||||||||||||||||||||
Consumer loans | 389 | 3,042 | 0.4 | % | 352 | 3,251 | 0.4 | % | 350 | 2,654 | 0.4 | % | 296 | 2,259 | 0.3 | % | 463 | 3,351 | 0.5 | % | ||||||||||||||||||||||||||||||
Commercial real estate loans | 24 | 5,387 | 0.2 | % | 30 | 6,678 | 0.3 | % | 28 | 3,689 | 0.1 | % | 23 | 1,809 | 0.1 | % | 25 | 2,539 | 0.1 | % | ||||||||||||||||||||||||||||||
Commercial loans | 8 | 560 | 0.1 | % | 21 | 1,104 | 0.2 | % | 15 | 926 | 0.2 | % | 7 | 196 | — | % | 10 | 441 | 0.1 | % | ||||||||||||||||||||||||||||||
Total loans delinquent 60 days to 89 days | 641 | $ | 17,651 | 0.2 | % | 645 | $ | 18,507 | 0.2 | % | 655 | $ | 15,888 | 0.2 | % | 508 | $ | 8,480 | 0.1 | % | 1,057 | $ | 16,550 | 0.2 | % | |||||||||||||||||||||||||
Loans delinquent 90 days or more: ** | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 145 | $ | 12,985 | 0.5 | % | 143 | $ | 13,483 | 0.5 | % | 140 | $ | 12,293 | 0.4 | % | 127 | $ | 10,791 | 0.4 | % | 158 | $ | 13,890 | 0.5 | % | |||||||||||||||||||||||||
Home equity loans | 161 | 6,037 | 0.5 | % | 150 | 5,838 | 0.5 | % | 154 | 6,768 | 0.5 | % | 148 | 6,750 | 0.5 | % | 177 | 7,349 | 0.6 | % | ||||||||||||||||||||||||||||||
Consumer finance loans | 6 | 21 | 0.6 | % | 16 | 39 | 0.7 | % | 8 | 15 | 0.2 | % | 7 | 3 | — | % | 74 | 199 | 1.1 | % | ||||||||||||||||||||||||||||||
Consumer loans | 432 | 3,233 | 0.4 | % | 766 | 3,541 | 0.5 | % | 302 | 2,633 | 0.4 | % | 659 | 2,939 | 0.4 | % | 719 | 3,627 | 0.6 | % | ||||||||||||||||||||||||||||||
Commercial real estate loans | 128 | 25,587 | 1.0 | % | 126 | 27,228 | 1.1 | % | 113 | 15,772 | 0.6 | % | 106 | 16,723 | 0.7 | % | 109 | 16,284 | 0.7 | % | ||||||||||||||||||||||||||||||
Commercial loans | 29 | 3,010 | 0.5 | % | 29 | 2,714 | 0.5 | % | 31 | 2,925 | 0.5 | % | 35 | 3,144 | 0.5 | % | 37 | 3,140 | 0.5 | % | ||||||||||||||||||||||||||||||
Total loans delinquent 90 days or more | 901 | $ | 50,873 | 0.6 | % | 1,230 | $ | 52,843 | 0.7 | % | 748 | $ | 40,406 | 0.5 | % | 1,082 | $ | 40,350 | 0.5 | % | 1,274 | $ | 44,489 | 0.6 | % | |||||||||||||||||||||||||
Total loans delinquent | 3,566 | $ | 121,534 | 1.5 | % | 3,403 | $ | 93,571 | 1.2 | % | 2,888 | $ | 80,702 | 1.0 | % | 3,550 | $ | 116,394 | 1.5 | % | 5,089 | $ | 117,504 | 1.5 | % | |||||||||||||||||||||||||
* Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
** Includes purchased credit impaired loans of $145,000, $440,000, $672,000, $760,000, and $1.4 million at December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018, and December 31, 2017, respectively.
Northwest Bancshares, Inc. and Subsidiaries
Allowance for loan losses (Unaudited)
(Dollars in thousands)
Quarter ended | |||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||
Beginning balance | $ | 55,975 | 57,332 | 55,211 | 56,795 | 56,927 | |||||||||
Provision | 3,792 | 6,982 | 5,349 | 4,209 | 6,525 | ||||||||||
Charge-offs residential mortgage | (375 | ) | (214 | ) | (389 | ) | (201 | ) | (162 | ) | |||||
Charge-offs home equity | (341 | ) | (426 | ) | (406 | ) | (611 | ) | (393 | ) | |||||
Charge-offs consumer finance | (329 | ) | (445 | ) | (486 | ) | (1,553 | ) | (2,900 | ) | |||||
Charge-offs consumer | (3,751 | ) | (3,470 | ) | (2,682 | ) | (3,249 | ) | (3,322 | ) | |||||
Charge-offs commercial real estate | (1,538 | ) | (4,859 | ) | (439 | ) | (551 | ) | (1,470 | ) | |||||
Charge-offs commercial | (824 | ) | (985 | ) | (491 | ) | (1,025 | ) | (785 | ) | |||||
Recoveries | 2,605 | 2,060 | 1,665 | 1,397 | 2,375 | ||||||||||
Ending balance | $ | 55,214 | 55,975 | 57,332 | 55,211 | 56,795 | |||||||||
Net charge-offs to average loans, annualized | 0.23 | % | 0.42 | % | 0.16 | % | 0.30 | % | 0.34 | % | |||||
Year ended December 31, | ||||||
2018 | 2017 | |||||
Beginning balance | $ | 56,795 | 60,939 | |||
Provision | 20,332 | 19,751 | ||||
Charge-offs residential mortgage | (1,179 | ) | (1,039 | ) | ||
Charge-offs home equity | (1,785 | ) | (2,259 | ) | ||
Charge-offs consumer finance | (2,813 | ) | (8,369 | ) | ||
Charge-offs consumer | (13,152 | ) | (11,923 | ) | ||
Charge-offs commercial real estate | (7,387 | ) | (4,174 | ) | ||
Charge-offs commercial | (3,325 | ) | (3,490 | ) | ||
Recoveries | 7,728 | 7,359 | ||||
Ending balance | $ | 55,214 | 56,795 | |||
Net charge-offs to average loans, annualized | 0.28 | % | 0.31 | % | ||
December 31, 2018 | ||||||||||||||||||
Originated loans | Acquired loans | Total loans | ||||||||||||||||
Balance | Reserve | Balance | Reserve | Balance | Reserve | |||||||||||||
Residential mortgage loans | $ | 2,770,688 | 4,054 | 93,782 | 83 | 2,864,470 | 4,137 | |||||||||||
Home equity loans | 1,043,878 | 3,184 | 214,544 | 348 | 1,258,422 | 3,532 | ||||||||||||
Consumer finance loans | 3,817 | 676 | — | — | 3,817 | 676 | ||||||||||||
Consumer loans | 796,427 | 10,404 | 59,469 | 419 | 855,896 | 10,823 | ||||||||||||
Personal Banking loans | 4,614,810 | 18,318 | 367,795 | 850 | 4,982,605 | 19,168 | ||||||||||||
Commercial real estate loans | 2,249,018 | 26,379 | 222,803 | 1,996 | 2,471,821 | 28,375 | ||||||||||||
Commercial loans | 549,357 | 7,054 | 47,656 | 617 | 597,013 | 7,671 | ||||||||||||
Commercial Banking loans | 2,798,375 | 33,433 | 270,459 | 2,613 | 3,068,834 | 36,046 | ||||||||||||
Total loans | $ | 7,413,185 | 51,751 | 638,254 | 3,463 | 8,051,439 | 55,214 | |||||||||||
Northwest Bancshares, Inc. and Subsidiaries
Average balance sheet (Unaudited)
(Dollars in thousands)
The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
Quarter ended | |||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 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 | $ | 2,837,220 | 28,794 | 4.06 | % | $ | 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 | % | ||||||||||||||||||||||||
Home equity loans | 1,264,169 | 15,788 | 4.95 | % | 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 | % | |||||||||||||||||||||||||||||
Consumer loans | 791,685 | 9,365 | 4.69 | % | 704,203 | 8,337 | 4.70 | % | 655,541 | 7,949 | 4.86 | % | 637,691 | 7,450 | 4.74 | % | 633,023 | 8,004 | 5.02 | % | |||||||||||||||||||||||||||||
Consumer finance loans | 4,751 | 220 | 18.52 | % | 7,176 | 343 | 19.12 | % | 10,428 | 516 | 19.79 | % | 15,254 | 768 | 20.14 | % | 22,469 | 1,151 | 20.32 | % | |||||||||||||||||||||||||||||
Commercial real estate loans | 2,492,331 | 29,991 | 4.71 | % | 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 | % | |||||||||||||||||||||||||||||
Commercial loans | 590,195 | 8,666 | 5.75 | % | 598,842 | 8,203 | 5.36 | % | 624,087 | 7,703 | 4.88 | % | 595,276 | 7,160 | 4.81 | % | 588,420 | 6,739 | 4.48 | % | |||||||||||||||||||||||||||||
Total loans receivable (a) (b) (d) | 7,980,351 | 92,824 | 4.61 | % | 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 | % | |||||||||||||||||||||||||||||
Mortgage-backed securities (c) | 619,105 | 3,942 | 2.55 | % | 598,596 | 3,572 | 2.39 | % | 569,893 | 3,255 | 2.28 | % | 558,055 | 3,013 | 2.16 | % | 581,055 | 3,016 | 2.08 | % | |||||||||||||||||||||||||||||
Investment securities (c) (d) | 227,813 | 1,140 | 2.00 | % | 244,346 | 1,074 | 1.76 | % | 235,784 | 1,044 | 1.77 | % | 256,287 | 1,172 | 1.83 | % | 301,268 | 1,495 | 1.98 | % | |||||||||||||||||||||||||||||
FHLB stock | 14,372 | 151 | 4.17 | % | 9,819 | 119 | 4.81 | % | 7,819 | 85 | 4.36 | % | 9,354 | 97 | 4.21 | % | 10,066 | 78 | 3.07 | % | |||||||||||||||||||||||||||||
Other interest-earning deposits | 10,454 | 68 | 2.55 | % | 26,057 | 162 | 2.43 | % | 103,739 | 469 | 1.79 | % | 34,200 | 135 | 1.58 | % | 13,515 | 59 | 1.71 | % | |||||||||||||||||||||||||||||
Total interest-earning assets | 8,852,095 | 98,125 | 4.40 | % | 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 | % | |||||||||||||||||||||||||||||
Noninterest earning assets (e) | 743,262 | 746,077 | 732,065 | 779,812 | 709,753 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 9,595,357 | $ | 9,552,260 | $ | 9,500,055 | $ | 9,412,273 | $ | 9,361,235 | |||||||||||||||||||||||||||||||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Savings deposits | $ | 1,637,400 | 758 | 0.18 | % | $ | 1,672,990 | 785 | 0.19 | % | $ | 1,699,168 | 773 | 0.18 | % | $ | 1,670,491 | 749 | 0.18 | % | $ | 1,655,798 | 763 | 0.18 | % | ||||||||||||||||||||||||
Interest-bearing demand deposits | 1,442,587 | 1,066 | 0.29 | % | 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 | % | |||||||||||||||||||||||||||||
Money market deposit accounts | 1,678,664 | 1,910 | 0.45 | % | 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 | % | |||||||||||||||||||||||||||||
Time deposits | 1,401,352 | 5,251 | 1.49 | % | 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 | % | |||||||||||||||||||||||||||||
Borrowed funds (f) | 216,975 | 782 | 1.43 | % | 129,523 | 239 | 0.73 | % | 104,415 | 50 | 0.19 | % | 133,231 | 124 | 0.38 | % | 159,599 | 187 | 0.46 | % | |||||||||||||||||||||||||||||
Junior subordinated debentures | 111,213 | 1,170 | 4.12 | % | 111,213 | 1,316 | 4.63 | % | 111,213 | 1,290 | 4.59 | % | 111,213 | 1,184 | 4.26 | % | 111,213 | 1,163 | 4.09 | % | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 6,488,191 | 10,937 | 0.67 | % | 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 | % | |||||||||||||||||||||||||||||
Noninterest-bearing demand deposits (g) | 1,750,253 | 1,724,427 | 1,676,344 | 1,606,247 | 1,599,834 | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest bearing liabilities | 112,349 | 132,062 | 92,252 | 143,608 | 57,956 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 8,350,793 | 8,320,106 | 8,283,729 | 8,206,296 | 8,159,765 | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 1,244,564 | 1,232,154 | 1,216,326 | 1,205,977 | 1,201,470 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 9,595,357 | $ | 9,552,260 | $ | 9,500,055 | $ | 9,412,273 | $ | 9,361,235 | |||||||||||||||||||||||||||||||||||||||
Net interest income/ Interest rate spread | 87,188 | 3.73 | % | 86,218 | 3.73 | % | 84,683 | 3.74 | % | 82,172 | 3.74 | % | 85,032 | 3.79 | % | ||||||||||||||||||||||||||||||||||
Net interest-earning assets/ Net interest margin | $ | 2,363,904 | 3.94 | % | $ | 2,342,566 | 3.92 | % | $ | 2,252,857 | 3.86 | % | $ | 2,176,020 | 3.86 | % | $ | 2,149,507 | 3.93 | % | |||||||||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.36X | 1.36X | 1.35X | 1.34X | 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 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 0.45%, 0.41%, 0.37%, 0.33% and 0.30%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.60%, 4.54%, 4.50%, 4.45% and 4.46%, respectively, Investment securities - 1.92%, 1.67%, 1.63%, 1.67% and 1.66%, respectively, Interest-earning assets - 4.38%, 4.31%, 4.25%, 4.21% and 4.20%, respectively. GAAP basis net interest rate spreads were 3.71%, 3.71%, 3.72%, 3.72% and 3.75%, respectively, and GAAP basis net interest margins were 3.92%, 3.90%, 3.84%, 3.84% and 3.89%, respectively.
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.
Year ended December 31, | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
Average Balance | Interest | Avg. Yield/ Cost (h) | Average Balance | Interest | Avg. Yield/ Cost (h) | ||||||||||||||
Assets: | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Residential mortgage loans | $ | 2,789,990 | 113,379 | 4.06 | % | $ | 2,730,055 | 112,206 | 4.11 | % | |||||||||
Home equity loans | 1,279,087 | 61,405 | 4.80 | % | 1,313,789 | 58,426 | 4.45 | % | |||||||||||
Consumer loans | 697,722 | 33,153 | 4.75 | % | 590,439 | 30,253 | 5.12 | % | |||||||||||
Consumer finance loans | 9,367 | 1,847 | 19.72 | % | 35,761 | 7,177 | 20.07 | % | |||||||||||
Commercial real estate loans | 2,505,701 | 116,180 | 4.57 | % | 2,429,644 | 109,118 | 4.43 | % | |||||||||||
Commercial loans | 602,077 | 31,939 | 5.23 | % | 564,600 | 25,000 | 4.37 | % | |||||||||||
Loans receivable (a) (b) (d) | 7,883,944 | 357,903 | 4.54 | % | 7,664,288 | 342,180 | 4.46 | % | |||||||||||
Mortgage-backed securities (c) | 586,613 | 13,781 | 2.35 | % | 563,696 | 11,343 | 2.01 | % | |||||||||||
Investment securities (c) (d) | 240,989 | 4,429 | 1.84 | % | 350,870 | 6,862 | 1.96 | % | |||||||||||
FHLB stock | 10,354 | 452 | 4.37 | % | 8,186 | 250 | 3.05 | % | |||||||||||
Other interest-earning deposits | 41,079 | 835 | 2.00 | % | 158,229 | 1,499 | 0.93 | % | |||||||||||
Total interest-earning assets | 8,762,979 | 377,400 | 4.30 | % | 8,745,269 | 362,134 | 4.14 | % | |||||||||||
Noninterest earning assets (e) | 752,007 | 757,249 | |||||||||||||||||
Total assets | $ | 9,514,986 | $ | 9,502,518 | |||||||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Savings deposits | $ | 1,669,930 | 3,064 | 0.18 | % | $ | 1,688,451 | 3,062 | 0.18 | % | |||||||||
Interest-bearing demand deposits | 1,447,809 | 3,607 | 0.25 | % | 1,432,134 | 1,027 | 0.07 | % | |||||||||||
Money market deposit accounts | 1,690,481 | 5,740 | 0.34 | % | 1,810,083 | 4,203 | 0.23 | % | |||||||||||
Time deposits | 1,415,187 | 18,574 | 1.31 | % | 1,490,378 | 14,765 | 0.99 | % | |||||||||||
Borrowed funds (f) | 146,220 | 1,194 | 0.82 | % | 132,350 | 348 | 0.26 | % | |||||||||||
Junior subordinated debentures | 111,213 | 4,961 | 4.40 | % | 111,213 | 4,666 | 4.14 | % | |||||||||||
Total interest-bearing liabilities | 6,480,840 | 37,140 | 0.57 | % | 6,664,609 | 28,071 | 0.42 | % | |||||||||||
Noninterest-bearing demand deposits (g) | 1,710,841 | 1,556,511 | |||||||||||||||||
Noninterest bearing liabilities | 98,550 | 92,611 | |||||||||||||||||
Total liabilities | 8,290,231 | 8,313,731 | |||||||||||||||||
Shareholders’ equity | 1,224,755 | 1,188,787 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 9,514,986 | $ | 9,502,518 | |||||||||||||||
Net interest income/ Interest rate spread | 340,260 | 3.73 | % | 334,063 | 3.72 | % | |||||||||||||
Net interest-earning assets/ Net interest margin | $ | 2,282,139 | 3.88 | % | $ | 2,080,660 | 3.82 | % | |||||||||||
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 0.39%, and 0.29%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.52% and 4.44%, respectively, Investment securities - 1.72% and 1.65%, respectively, Interest-earning assets - 4.29% and 4.10%, respectively. GAAP basis net interest rate spreads were 3.72% and 3.68%, respectively, and GAAP basis net interest margins were 3.86% and 3.78%, respectively.