NWBI - Northwest Bancshares Inc. Announces First Quarter 2019 Earnings and Quarterly Dividend
WARREN, Pa., April 17, 2019 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2019 of $25.0 million, or $0.24 per diluted share. This represents an increase of $59,000, or 0.2%, compared to the same quarter last year when net income was also $25.0 million or $0.24 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended March 31, 2019 were 7.96% and 1.03% compared to 8.40% and 1.08% for the same quarter last year. Earnings during the current quarter were impacted by $1.9 million of expense associated with the acquisition and integration of Union Community Bank ("UCB") on March 8, 2019. Excluding these costs, net income was approximately $26.4 million, or $0.25 per diluted share.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.18 per share payable on May 16, 2019, to shareholders of record as of May 2, 2019. This is the 98th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's stock as of March 31, 2019, this represents an annualized dividend yield of approximately 4.25%.
In making this announcement, Ronald J. Seiffert, Chairman, President and CEO, noted, "We are very pleased to report the successful integration of Union Community Bank with Northwest Bank, which occurred on March 8, 2019. Union Community brings $537.9 million of assets, including approximately $408.0 million of loans, almost $480 million of deposits and 14,700 new households. In addition to this accomplishment, our internal loan growth exceeded $110.5 million, or almost 1.4%, for the quarter. This loan growth was funded entirely with internal deposit growth which increased $219.0 million, or 2.8%, during the first quarter. Lastly, we continue to be pleased with the expansion of our net interest margin, which increased to 3.97% despite the market interest rate challenges of a flattening yield curve."
Net interest income increased by $6.2 million, or 7.6%, to $88.0 million for the quarter ended March 31, 2019, from $81.8 million for the quarter ended March 31, 2018, primarily due to a $9.7 million, or 11.4%, increase in interest income on loans receivable and a $952,000, or 31.6%, increase in interest income on mortgage-backed securities. These increases were primarily due to increases of $382.0 million, or 4.9%, and $46.4 million, or 8.3%, in the average balances of loans and mortgage-backed securities, respectively. Additionally, the average yield on loans and mortgage-backed securities increased by 28 and 46 basis points, respectively, over the prior year. Partially offsetting this improvement was an increase in interest expense on deposits of $3.7 million, or 57.1%, due to the recent increases in market interest rates. The net impact of these changes caused the Company's net interest margin to increase to 3.97% for the quarter ended March 31, 2019 from 3.86% for the same quarter last year.
The provision for loan losses increased by $2.3 million, or 53.6%, to $6.5 million for the quarter ended March 31, 2019, from $4.2 million for the quarter ended March 31, 2018. This increase is due primarily to elevated charge-offs during the quarter primarily as a result of one commercial loan that was charged down by approximately $2.6 million.
Noninterest income decreased by $126,000, or 0.6%, to $21.7 million for the quarter ended March 31, 2019, from $21.8 million for the quarter ended March 31, 2018. This decrease was primarily due to a $571,000, or 20.8%, decline in insurance commission income primarily as a result of the loss of certain contingent bonus commissions due to a change in related laws impacting the current quarter. Partially offsetting this decline was a decrease in loss on real estate owned of $543,000, or 99.5%, to $3,000 for the current quarter compared to $546,000 for the prior year's quarter, primarily as a result of the sale of one commercial property at a net loss of $265,000 during the first quarter of 2018.
Noninterest expense increased by $4.0 million, or 5.9%, to $71.4 million for the quarter ended March 31, 2019, from $67.4 million for the quarter ended March 31, 2018. This increase resulted primarily from a $1.7 million, or 4.6%, increase in compensation and employee benefits due to both internal growth in compensation and staff as well as the addition of UCB employees. In addition, processing expenses increased by $728,000, or 7.5%, as we continue to invest in technology and infrastructure to meet the demands of becoming a $10.0 billion institution. Also contributing to this increase was an increase in restructuring and acquisition expense of $1.9 million due to expenses incurred as part of the UCB acquisition.
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 172 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) |
March 31, |
December 31, |
March 31, |
Assets |
Cash and cash equivalents |
$ |
92,923 |
68,789 |
192,158 |
Marketable securities available-for-sale (amortized cost of $845,989, $811,015 and $771,110, respectively) |
842,657 |
801,450 |
757,976 |
Marketable securities held-to-maturity (fair value of $21,597, $22,446 and $27,324, respectively) |
21,671 |
22,765 |
27,709 |
Total cash and cash equivalents and marketable securities |
957,251 |
893,004 |
977,843 |
Residential mortgage loans |
2,867,161 |
2,864,470 |
2,772,148 |
Home equity loans |
1,324,405 |
1,258,422 |
1,288,361 |
Consumer loans |
931,062 |
859,713 |
686,038 |
Commercial real estate loans |
2,799,309 |
2,471,821 |
2,512,257 |
Commercial loans |
647,938 |
597,013 |
623,463 |
Total loans receivable |
8,569,875 |
8,051,439 |
7,882,267 |
Allowance for loan losses |
(55,721) |
(55,214) |
(55,211) |
Loans receivable, net |
8,514,154 |
7,996,225 |
7,827,056 |
Federal Home Loan Bank stock, at cost |
12,533 |
15,635 |
7,694 |
Accrued interest receivable |
28,107 |
24,490 |
23,051 |
Real estate owned, net |
2,345 |
2,498 |
4,041 |
Premises and equipment, net |
149,623 |
143,390 |
148,184 |
Bank owned life insurance |
186,251 |
171,079 |
172,537 |
Goodwill |
344,720 |
307,420 |
307,420 |
Other intangible assets |
25,872 |
19,821 |
24,149 |
Other assets |
76,232 |
34,211 |
29,004 |
Total assets |
$ |
10,297,088 |
9,607,773 |
9,520,979 |
Liabilities and shareholders' equity |
Liabilities |
Noninterest-bearing demand deposits |
$ |
1,992,126 |
1,736,156 |
1,679,853 |
Interest-bearing demand deposits |
1,583,049 |
1,455,460 |
1,476,177 |
Money market deposit accounts |
1,778,806 |
1,661,623 |
1,707,837 |
Savings deposits |
1,711,216 |
1,636,099 |
1,701,022 |
Time deposits |
1,527,327 |
1,404,841 |
1,420,600 |
Total deposits |
8,592,524 |
7,894,179 |
7,985,489 |
Borrowed funds |
114,081 |
234,389 |
104,558 |
Advances by borrowers for taxes and insurance |
44,905 |
43,298 |
43,654 |
Accrued interest payable |
1,111 |
744 |
528 |
Other liabilities |
106,434 |
66,312 |
60,283 |
Junior subordinated debentures |
121,757 |
111,213 |
111,213 |
Total liabilities |
8,980,812 |
8,350,135 |
8,305,725 |
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, 106,220,030, 103,354,030, and |
1,062 |
1,034 |
1,026 |
Paid-in-capital |
795,044 |
745,926 |
734,065 |
Retained earnings |
555,205 |
550,374 |
522,384 |
Accumulated other comprehensive loss |
(35,035) |
(39,696) |
(42,221) |
Total shareholders' equity |
1,316,276 |
1,257,638 |
1,215,254 |
Total liabilities and shareholders' equity |
$ |
10,297,088 |
9,607,773 |
9,520,979 |
Equity to assets |
12.78 |
% |
13.09 |
% |
12.76 |
% |
Tangible common equity to assets |
9.53 |
% |
10.03 |
% |
9.62 |
% |
Book value per share |
$ |
12.39 |
12.17 |
11.84 |
Tangible book value per share |
$ |
8.90 |
9.00 |
8.61 |
Closing market price per share |
$ |
16.97 |
16.94 |
16.56 |
Full time equivalent employees |
2,205 |
2,128 |
2,105 |
Number of banking offices |
182 |
172 |
172 |
Northwest Bancshares, Inc. and Subsidiaries |
Consolidated Statements of Income (Unaudited) |
(Dollars in thousands, except per share amounts) |
Quarter ended |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
2019 |
2018 |
2018 |
2018 |
2018 |
Interest income: |
Loans receivable |
$ |
94,935 |
92,512 |
90,733 |
88,106 |
85,220 |
Mortgage-backed securities |
3,965 |
3,942 |
3,572 |
3,254 |
3,013 |
Taxable investment securities |
936 |
924 |
814 |
648 |
678 |
Tax-free investment securities |
182 |
170 |
205 |
313 |
390 |
FHLB dividends |
171 |
151 |
119 |
85 |
97 |
Interest-earning deposits |
100 |
69 |
162 |
469 |
135 |
Total interest income |
100,289 |
97,768 |
95,605 |
92,875 |
89,533 |
Interest expense: |
Deposits |
10,145 |
8,985 |
8,233 |
7,309 |
6,458 |
Borrowed funds |
2,162 |
1,952 |
1,555 |
1,340 |
1,308 |
Total interest expense |
12,307 |
10,937 |
9,788 |
8,649 |
7,766 |
Net interest income |
87,982 |
86,831 |
85,817 |
84,226 |
81,767 |
Provision for loan losses |
6,467 |
3,792 |
6,982 |
5,349 |
4,209 |
Net interest income after provision for loan losses |
81,515 |
83,039 |
78,835 |
78,877 |
77,558 |
Noninterest income: |
Gain/(loss) on sale of investments |
(6) |
4 |
— |
— |
153 |
Service charges and fees |
12,043 |
12,827 |
13,158 |
12,908 |
11,899 |
Trust and other financial services income |
4,195 |
4,246 |
4,254 |
4,050 |
4,031 |
Insurance commission income |
2,178 |
1,906 |
2,046 |
2,090 |
2,749 |
Gain/(loss) on real estate owned, net |
(3) |
(14) |
(247) |
176 |
(546) |
Income from bank owned life insurance |
1,005 |
1,038 |
1,460 |
2,333 |
990 |
Mortgage banking income |
216 |
213 |
82 |
77 |
224 |
Other operating income |
2,034 |
3,028 |
1,804 |
2,475 |
2,288 |
Total noninterest income |
21,662 |
23,248 |
22,557 |
24,109 |
21,788 |
Noninterest expense: |
Compensation and employee benefits |
38,188 |
39,319 |
37,535 |
39,031 |
36,510 |
Premises and occupancy costs |
7,218 |
6,567 |
6,821 |
6,824 |
7,307 |
Office operations |
3,131 |
3,455 |
3,508 |
3,768 |
3,408 |
Collections expense |
308 |
780 |
483 |
434 |
512 |
Processing expenses |
10,434 |
10,160 |
9,620 |
9,560 |
9,706 |
Marketing expenses |
1,886 |
2,331 |
1,949 |
2,014 |
2,140 |
Federal deposit insurance premiums |
706 |
637 |
721 |
671 |
717 |
Professional services |
2,524 |
3,134 |
2,368 |
2,819 |
2,277 |
Amortization of intangible assets |
1,447 |
1,346 |
1,462 |
1,520 |
1,520 |
Real estate owned expense |
159 |
187 |
205 |
133 |
292 |
Restructuring/acquisition expense |
1,926 |
435 |
186 |
393 |
— |
Other expense |
3,497 |
3,922 |
1,759 |
2,620 |
3,032 |
Total noninterest expense |
71,424 |
72,273 |
66,617 |
69,787 |
67,421 |
Income before income taxes |
31,753 |
34,014 |
34,775 |
33,199 |
31,925 |
Income tax expense |
6,709 |
7,547 |
7,035 |
6,900 |
6,940 |
Net income |
$ |
25,044 |
26,467 |
27,740 |
26,299 |
24,985 |
Basic earnings per share |
$ |
0.24 |
0.26 |
0.27 |
0.26 |
0.25 |
Diluted earnings per share |
$ |
0.24 |
0.26 |
0.27 |
0.25 |
0.24 |
Weighted average common shares outstanding - basic |
103,101,789 |
102,479,086 |
102,334,954 |
101,870,043 |
101,598,928 |
Weighted average common shares outstanding - diluted |
104,496,592 |
103,749,383 |
103,942,695 |
103,424,154 |
103,136,497 |
Annualized return on average equity |
7.96 |
% |
8.44 |
% |
8.93 |
% |
8.67 |
% |
8.40 |
% |
Annualized return on average assets |
1.03 |
% |
1.09 |
% |
1.15 |
% |
1.11 |
% |
1.08 |
% |
Annualized return on tangible common equity |
10.74 |
% |
11.29 |
% |
12.07 |
% |
11.74 |
% |
11.47 |
% |
Efficiency ratio * |
62.07 |
% |
64.04 |
% |
59.95 |
% |
62.65 |
% |
63.64 |
% |
Annualized noninterest expense to average assets * |
2.79 |
% |
2.91 |
% |
2.70 |
% |
2.87 |
% |
2.84 |
% |
* Excludes restructuring/acquisition expenses and amortization of intangible assets. |
Northwest Bancshares, Inc. and Subsidiaries |
Asset quality (Unaudited) |
(Dollars in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
Nonaccrual loans current: |
Residential mortgage loans |
$ |
124 |
264 |
869 |
669 |
123 |
Home equity loans |
643 |
437 |
496 |
237 |
269 |
Consumer loans |
76 |
196 |
126 |
218 |
178 |
Commercial real estate loans |
10,520 |
9,947 |
10,905 |
14,814 |
11,355 |
Commercial loans |
4,277 |
4,736 |
1,972 |
2,559 |
2,381 |
Total nonaccrual loans current |
$ |
15,640 |
15,580 |
14,368 |
18,497 |
14,306 |
Nonaccrual loans delinquent 30 days to 59 |
Residential mortgage loans |
$ |
824 |
1,358 |
15 |
89 |
1,290 |
Home equity loans |
160 |
266 |
333 |
221 |
232 |
Consumer loans |
154 |
294 |
182 |
192 |
224 |
Commercial real estate loans |
2,642 |
219 |
3,124 |
522 |
975 |
Commercial loans |
321 |
23 |
150 |
51 |
140 |
Total nonaccrual loans delinquent 30 days to 59 days |
$ |
4,101 |
2,160 |
3,804 |
1,075 |
2,861 |
Nonaccrual loans delinquent 60 days to 89 days: |
Residential mortgage loans |
$ |
1,323 |
1,262 |
547 |
668 |
755 |
Home equity loans |
954 |
376 |
418 |
483 |
465 |
Consumer loans |
683 |
582 |
464 |
194 |
224 |
Commercial real estate loans |
3,588 |
1,260 |
1,872 |
1,682 |
399 |
Commercial loans |
397 |
332 |
352 |
380 |
80 |
Total nonaccrual loans delinquent 60 days to 89 days |
$ |
6,945 |
3,812 |
3,653 |
3,407 |
1,923 |
Nonaccrual loans delinquent 90 days or more: |
Residential mortgage loans |
$ |
10,781 |
12,965 |
13,154 |
11,822 |
10,660 |
Home equity loans |
5,542 |
5,996 |
5,838 |
6,729 |
6,707 |
Consumer finance loans |
— |
22 |
39 |
15 |
3 |
Consumer loans |
3,215 |
3,228 |
3,535 |
2,626 |
2,931 |
Commercial real estate loans |
24,528 |
25,509 |
27,122 |
15,617 |
16,145 |
Commercial loans |
2,027 |
3,010 |
2,714 |
2,925 |
3,144 |
Total nonaccrual loans delinquent 90 days or more |
$ |
46,093 |
50,730 |
52,402 |
39,734 |
39,590 |
Total nonaccrual loans |
$ |
72,779 |
72,282 |
74,227 |
62,713 |
58,680 |
Total nonaccrual loans |
$ |
72,779 |
72,282 |
74,227 |
62,713 |
58,680 |
Loans 90 days past maturity and still accruing |
166 |
166 |
195 |
94 |
210 |
Nonperforming loans |
72,945 |
72,448 |
74,422 |
62,807 |
58,890 |
Real estate owned, net |
2,345 |
2,498 |
2,486 |
2,722 |
4,041 |
Nonperforming assets |
$ |
75,290 |
74,946 |
76,908 |
65,529 |
62,931 |
Nonaccrual troubled debt restructuring * |
$ |
14,951 |
15,306 |
9,777 |
10,860 |
11,217 |
Accruing troubled debt restructuring |
17,861 |
18,302 |
19,370 |
19,802 |
19,749 |
Total troubled debt restructuring |
$ |
32,812 |
33,608 |
29,147 |
30,662 |
30,966 |
Nonperforming loans to total loans |
0.85 |
% |
0.90 |
% |
0.93 |
% |
0.79 |
% |
0.75 |
% |
Nonperforming assets to total assets |
0.73 |
% |
0.78 |
% |
0.80 |
% |
0.69 |
% |
0.66 |
% |
Allowance for loan losses to total loans |
0.65 |
% |
0.69 |
% |
0.70 |
% |
0.72 |
% |
0.70 |
% |
Allowance for loan losses to nonperforming loans |
76.39 |
% |
76.21 |
% |
75.21 |
% |
91.28 |
% |
93.75 |
% |
* Amounts included in nonperforming loans above. |
Northwest Bancshares, Inc. and Subsidiaries |
Loans by credit quality indicators (Unaudited) |
(Dollars in thousands) |
At March 31, 2019 |
Pass |
Special mention * |
Substandard ** |
Doubtful |
Loss |
Loans receivable |
Personal Banking: |
Residential mortgage loans |
$ |
2,858,007 |
— |
9,154 |
— |
— |
2,867,161 |
Home equity loans |
1,317,323 |
— |
7,082 |
— |
— |
1,324,405 |
Consumer loans |
926,832 |
— |
4,230 |
— |
— |
931,062 |
Total Personal Banking |
5,102,162 |
— |
20,466 |
— |
— |
5,122,628 |
Commercial Banking: |
Commercial real estate loans |
2,577,176 |
87,053 |
135,080 |
— |
— |
2,799,309 |
Commercial loans |
573,160 |
34,610 |
40,168 |
— |
— |
647,938 |
Total Commercial Banking |
3,150,336 |
121,663 |
175,248 |
— |
— |
3,447,247 |
Total loans |
$ |
8,252,498 |
121,663 |
195,714 |
— |
— |
8,569,875 |
At December 31, 2018 |
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 |
* |
Includes $3.4 million, $7.1 million, $9.2 million, $9.5million and $7.9 million of acquired loans at March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively. |
** |
Includes $37.8 million, $39.3 million, $45.3 million, $44.5 million and $45.2 million of acquired loans at March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 30, 2018, respectively. |
Northwest Bancshares, Inc. and Subsidiaries |
Loan delinquency (Unaudited) |
(Dollars in thousands) |
March 31, 2019 |
* |
December 31, 2018 |
* |
September 30, 2018 |
* |
June 30, |
* |
March 31, 2018 |
* |
(Number of loans and dollar amount of loans) |
Loans delinquent 30 days to 59 days: |
Residential mortgage loans |
311 |
$ |
28,009 |
1.0 |
% |
333 |
$ |
27,777 |
1.0 |
% |
27 |
$ |
1,500 |
0.1 |
% |
30 |
$ |
1,561 |
0.1 |
% |
319 |
$ |
27,403 |
1.0 |
% |
Home equity loans |
195 |
7,626 |
0.6 |
% |
233 |
8,649 |
0.7 |
% |
184 |
5,673 |
0.4 |
% |
184 |
6,383 |
0.5 |
% |
200 |
7,406 |
0.6 |
% |
Consumer finance loans |
128 |
295 |
12.9 |
% |
327 |
661 |
17.3 |
% |
280 |
632 |
10.7 |
% |
306 |
711 |
8.1 |
% |
477 |
1,288 |
10.3 |
% |
Consumer loans |
777 |
7,228 |
0.8 |
% |
1,073 |
9,447 |
1.1 |
% |
984 |
8,408 |
1.1 |
% |
901 |
8,855 |
1.3 |
% |
871 |
8,252 |
1.2 |
% |
Commercial real estate loans |
48 |
28,965 |
1.0 |
% |
37 |
5,503 |
0.2 |
% |
36 |
5,386 |
0.2 |
% |
40 |
5,898 |
0.2 |
% |
58 |
20,303 |
0.8 |
% |
Commercial loans |
30 |
3,359 |
0.5 |
% |
21 |
973 |
0.2 |
% |
17 |
622 |
0.1 |
% |
24 |
1,000 |
0.2 |
% |
35 |
2,912 |
0.5 |
% |
Total loans delinquent 30 days to 59 days |
1,489 |
$ |
75,482 |
0.9 |
% |
2,024 |
$ |
53,010 |
0.7 |
% |
1,528 |
$ |
22,221 |
0.3 |
% |
1,485 |
$ |
24,408 |
0.3 |
% |
1,960 |
$ |
67,564 |
0.9 |
% |
Loans delinquent 60 days to 89 days: |
Residential mortgage loans |
29 |
$ |
2,602 |
0.1 |
% |
71 |
$ |
6,425 |
0.2 |
% |
61 |
$ |
4,704 |
0.2 |
% |
62 |
$ |
5,847 |
0.2 |
% |
21 |
$ |
1,943 |
0.1 |
% |
Home equity loans |
53 |
2,544 |
0.2 |
% |
63 |
2,065 |
0.2 |
% |
69 |
2,536 |
0.2 |
% |
73 |
2,495 |
0.2 |
% |
52 |
2,040 |
0.2 |
% |
Consumer finance loans |
28 |
47 |
2.1 |
% |
86 |
172 |
4.5 |
% |
112 |
234 |
4.0 |
% |
127 |
277 |
3.2 |
% |
109 |
233 |
1.9 |
% |
Consumer loans |
271 |
2,130 |
0.2 |
% |
389 |
3,042 |
0.4 |
% |
352 |
3,251 |
0.4 |
% |
350 |
2,654 |
0.4 |
% |
296 |
2,259 |
0.3 |
% |
Commercial real estate loans |
17 |
4,064 |
0.1 |
% |
24 |
5,387 |
0.2 |
% |
30 |
6,678 |
0.3 |
% |
28 |
3,689 |
0.1 |
% |
23 |
1,809 |
0.1 |
% |
Commercial loans |
7 |
738 |
0.1 |
% |
8 |
560 |
0.1 |
% |
21 |
1,104 |
0.2 |
% |
15 |
926 |
0.2 |
% |
7 |
196 |
— |
% |
Total loans delinquent 60 days to 89 days |
405 |
$ |
12,125 |
0.1 |
% |
641 |
$ |
17,651 |
0.2 |
% |
645 |
$ |
18,507 |
0.2 |
% |
655 |
$ |
15,888 |
0.2 |
% |
508 |
$ |
8,480 |
0.1 |
% |
Loans delinquent 90 days or more: ** |
Residential mortgage loans |
113 |
$ |
10,801 |
0.4 |
% |
145 |
$ |
12,985 |
0.5 |
% |
143 |
$ |
13,483 |
0.5 |
% |
140 |
$ |
12,293 |
0.4 |
% |
127 |
$ |
10,791 |
0.4 |
% |
Home equity loans |
155 |
5,542 |
0.4 |
% |
161 |
6,037 |
0.5 |
% |
150 |
5,838 |
0.5 |
% |
154 |
6,768 |
0.5 |
% |
148 |
6,750 |
0.5 |
% |
Consumer finance loans |
— |
— |
— |
% |
6 |
21 |
0.6 |
% |
16 |
39 |
0.7 |
% |
8 |
15 |
0.2 |
% |
7 |
3 |
— |
% |
Consumer loans |
764 |
3,221 |
0.3 |
% |
432 |
3,233 |
0.4 |
% |
766 |
3,541 |
0.5 |
% |
302 |
2,633 |
0.4 |
% |
659 |
2,939 |
0.4 |
% |
Commercial real estate loans |
125 |
24,589 |
0.9 |
% |
128 |
25,587 |
1.0 |
% |
126 |
27,228 |
1.1 |
% |
113 |
15,772 |
0.6 |
% |
106 |
16,723 |
0.7 |
% |
Commercial loans |
23 |
2,027 |
0.3 |
% |
29 |
3,010 |
0.5 |
% |
29 |
2,714 |
0.5 |
% |
31 |
2,925 |
0.5 |
% |
35 |
3,144 |
0.5 |
% |
Total loans delinquent 90 days or more |
1,180 |
$ |
46,180 |
0.5 |
% |
901 |
$ |
50,873 |
0.6 |
% |
1,230 |
$ |
52,843 |
0.7 |
% |
748 |
$ |
40,406 |
0.5 |
% |
1,082 |
$ |
40,350 |
0.5 |
% |
Total loans delinquent |
3,074 |
$ |
133,787 |
1.6 |
% |
3,566 |
$ |
121,534 |
1.5 |
% |
3,403 |
$ |
93,571 |
1.2 |
% |
2,888 |
$ |
80,702 |
1.0 |
% |
3,550 |
$ |
116,394 |
1.5 |
% |
* Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding. |
** Includes purchased credit impaired loans of $87,000, $145,000, $440,000, $672,000, and $760,000 at March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively. |
Northwest Bancshares, Inc. and Subsidiaries |
Allowance for loan losses (Unaudited) |
(Dollars in thousands) |
Quarter ended |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
Beginning balance |
$ 55,214 |
55,975 |
57,332 |
55,211 |
56,795 |
Provision |
6,467 |
3,792 |
6,982 |
5,349 |
4,209 |
Charge-offs residential mortgage |
(357) |
(375) |
(214) |
(389) |
(201) |
Charge-offs home equity |
(153) |
(341) |
(426) |
(406) |
(611) |
Charge-offs consumer finance |
(179) |
(329) |
(445) |
(486) |
(1,553) |
Charge-offs consumer |
(2,842) |
(3,751) |
(3,470) |
(2,682) |
(3,249) |
Charge-offs commercial real estate |
(604) |
(1,538) |
(4,859) |
(439) |
(551) |
Charge-offs commercial |
(3,270) |
(824) |
(985) |
(491) |
(1,025) |
Recoveries |
1,445 |
2,605 |
2,060 |
1,665 |
1,397 |
Ending balance |
$ |
55,721 |
55,214 |
55,975 |
57,332 |
55,211 |
Net charge-offs to average loans, annualized |
0.29 |
% |
0.23 |
% |
0.42 |
% |
0.16 |
% |
0.30 |
% |
March 31, 2019 |
Originated loans |
Acquired loans |
Total loans |
Balance |
Reserve |
Balance |
Reserve |
Balance |
Reserve |
Residential mortgage loans |
$ |
2,770,230 |
4,005 |
96,931 |
92 |
2,867,161 |
4,097 |
Home equity loans |
1,032,957 |
3,062 |
291,448 |
399 |
1,324,405 |
3,461 |
Legacy consumer finance loans |
2,292 |
406 |
— |
— |
2,292 |
406 |
Consumer loans |
876,540 |
11,130 |
52,230 |
453 |
928,770 |
11,583 |
Personal Banking Loans |
4,682,019 |
18,603 |
440,609 |
944 |
5,122,628 |
19,547 |
Commercial real estate loans |
2,297,337 |
25,470 |
501,972 |
2,467 |
2,799,309 |
27,937 |
Commercial loans |
580,098 |
7,638 |
67,840 |
599 |
647,938 |
8,237 |
Commercial Banking Loans |
2,877,435 |
33,108 |
569,812 |
3,066 |
3,447,247 |
36,174 |
Total Loans |
$ |
7,559,454 |
51,711 |
1,010,421 |
4,010 |
8,569,875 |
55,721 |
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 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
June 30, 2018 |
March 31, 2018 |
Average balance |
Interest |
Avg. yield/ cost (h) |
Average |
Interest |
Avg. |
Average |
Interest |
Avg. |
Average |
Interest |
Avg. |
Average |
Interest |
Avg. |
Assets: |
Interest-earning assets: |
Residential mortgage loans |
$ |
2,842,556 |
29,282 |
4.12 |
% |
$ |
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 |
% |
Home equity loans |
1,265,974 |
16,048 |
5.14 |
% |
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 |
% |
Consumer loans |
869,536 |
10,052 |
4.69 |
% |
791,685 |
9,365 |
4.69 |
% |
704,203 |
8,337 |
4.70 |
% |
655,541 |
7,949 |
4.86 |
% |
637,691 |
7,450 |
4.74 |
% |
Consumer finance loans |
2,999 |
139 |
18.54 |
% |
4,751 |
220 |
18.52 |
% |
7,176 |
343 |
19.12 |
% |
10,428 |
516 |
19.79 |
% |
15,254 |
768 |
20.14 |
% |
Commercial real estate loans |
2,560,408 |
30,767 |
4.81 |
% |
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 |
% |
Commercial loans |
615,090 |
8,967 |
5.83 |
% |
590,195 |
8,666 |
5.75 |
% |
598,842 |
8,203 |
5.36 |
% |
624,087 |
7,703 |
4.88 |
% |
595,276 |
7,160 |
4.81 |
% |
Total loans receivable (a) (b) (d) |
8,156,563 |
95,255 |
4.74 |
% |
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 |
% |
Mortgage-backed securities (c) |
604,463 |
3,965 |
2.62 |
% |
619,105 |
3,942 |
2.55 |
% |
598,596 |
3,572 |
2.39 |
% |
569,893 |
3,255 |
2.28 |
% |
558,055 |
3,013 |
2.16 |
% |
Investment securities (c) (d) |
227,312 |
1,167 |
2.05 |
% |
227,813 |
1,140 |
2.00 |
% |
244,346 |
1,074 |
1.76 |
% |
235,784 |
1,044 |
1.77 |
% |
256,287 |
1,172 |
1.83 |
% |
FHLB stock |
16,098 |
171 |
4.31 |
% |
14,372 |
151 |
4.17 |
% |
9,819 |
119 |
4.81 |
% |
7,819 |
85 |
4.36 |
% |
9,354 |
97 |
4.21 |
% |
Other interest-earning deposits |
14,136 |
100 |
2.83 |
% |
10,454 |
68 |
2.55 |
% |
26,057 |
162 |
2.43 |
% |
103,739 |
469 |
1.79 |
% |
34,200 |
135 |
1.58 |
% |
Total interest-earning assets |
9,018,572 |
100,658 |
4.53 |
% |
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 |
% |
Noninterest earning assets (e) |
868,843 |
743,262 |
746,077 |
732,065 |
779,812 |
Total assets |
$ |
9,887,415 |
$ |
9,595,357 |
$ |
9,552,260 |
$ |
9,500,055 |
$ |
9,412,273 |
Liabilities and shareholders' equity: |
Interest-bearing liabilities: |
Savings deposits |
$ |
1,650,947 |
758 |
0.19 |
% |
$ |
1,637,400 |
758 |
0.18 |
% |
$ |
1,672,990 |
785 |
0.19 |
% |
$ |
1,699,168 |
773 |
0.18 |
% |
$ |
1,670,491 |
749 |
0.18 |
% |
Interest-bearing demand deposits |
1,452,963 |
1,162 |
0.32 |
% |
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 |
% |
Money market deposit accounts |
1,693,626 |
2,579 |
0.62 |
% |
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 |
% |
Time deposits |
1,432,679 |
5,646 |
1.60 |
% |
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 |
% |
Borrowed funds (f) |
257,550 |
1,006 |
1.58 |
% |
216,975 |
782 |
1.43 |
% |
129,523 |
239 |
0.73 |
% |
104,415 |
50 |
0.19 |
% |
133,231 |
124 |
0.38 |
% |
Junior subordinated debentures |
114,727 |
1,156 |
4.03 |
% |
111,213 |
1,170 |
4.12 |
% |
111,213 |
1,316 |
4.63 |
% |
111,213 |
1,290 |
4.59 |
% |
111,213 |
1,184 |
4.26 |
% |
Total interest-bearing liabilities |
6,602,492 |
12,307 |
0.76 |
% |
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 |
% |
Noninterest-bearing demand deposits (g) |
1,785,158 |
1,750,253 |
1,724,427 |
1,676,344 |
1,606,247 |
Noninterest bearing liabilities |
223,480 |
112,349 |
132,062 |
92,252 |
143,608 |
Total liabilities |
8,611,130 |
8,350,793 |
8,320,106 |
8,283,729 |
8,206,296 |
Shareholders' equity |
1,276,285 |
1,244,564 |
1,232,154 |
1,216,326 |
1,205,977 |
Total liabilities and shareholders' equity |
$ |
9,887,415 |
$ |
9,595,357 |
$ |
9,552,260 |
$ |
9,500,055 |
$ |
9,412,273 |
Net interest income/Interest rate spread |
88,351 |
3.77 |
% |
87,188 |
3.73 |
% |
86,218 |
3.73 |
% |
84,683 |
3.74 |
% |
82,172 |
3.74 |
% |
Net interest-earning assets/ Net interest margin |
$ |
2,416,080 |
3.97 |
% |
$ |
2,363,904 |
3.94 |
% |
$ |
2,342,566 |
3.92 |
% |
$ |
2,252,857 |
3.86 |
% |
$ |
2,176,020 |
3.86 |
% |
Ratio of interest-earning assets to |
1.37X |
1.36X |
1.36X |
1.35X |
1.34X |
(a) |
Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status. |
(b) |
Interest income includes accretion/amortization of deferred loan fees/expenses, which was not material. |
(c) |
Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale. |
(d) |
Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis. |
(e) |
Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
(f) |
Average balances include FHLB borrowings and collateralized borrowings. |
(g) |
Average cost of deposits were 0.51%, 0.45%, 0.41%, 0.37% and 0.33%, respectively. |
(h) |
Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.72%, 4.60%, 4.54%, 4.50% and 4.45%, respectively, Investment securities - 1.97%, 1.92%, 1.67%, 1.63% and 1.67%, respectively, Interest-earning assets - 4.51%, 4.38%, 4.31%, 4.25% and 4.21%, respectively. GAAP basis net interest rate spreads were 3.75%, 3.71%, 3.71%, 3.72% and 3.72%, respectively, and GAAP basis net interest margins were 3.96%, 3.92%, 3.90%, 3.84% and 3.84%, respectively. |
SOURCE Northwest Bancshares, Inc.