Northwest Bancshares, Inc. Announces First Quarter 2022 Earnings and Quarterly Dividend
Northwest Bancshares, Inc. Announces Second Quarter 2022 Earnings and Quarterly Dividend

COLUMBUS, Ohio, July 25, 2022 /PRNewswire/ — Northwest Bancshares, Inc., (the “Company”), (NasdaqGS: NWBI) announced net income for the quarter ended June 30, 2022 of $33.4 million, or $0.26 per diluted share.  This represents a decrease of $15.5 million, or 31.7%, compared to the same quarter last year, when net income was $49.0 million, or $0.38 per diluted share.  The annualized returns on average shareholders’ equity and average assets for the quarter ended June 30, 2022 were 8.90% and 0.94% compared to 12.58% and 1.37% for the same quarter last year. Prior year earnings were enhanced by a $25.3 million pre-tax gain on the sale of the Northwest insurance line of business. 

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on August 15, 2022 to shareholders of record as of August 4, 2022. This is the 111th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company’s common stock as of June 30, 2022, this represents an annualized dividend yield of approximately 6.0%. 

During the second quarter, the Company announced the unfortunate passing of Chairman, President, and Chief Executive Officer, Ronald J. Seiffert, from natural causes. Subsequently, as announced on May 25, 2022, the Northwest Bancshares and Northwest Bank Boards of Directors named the Company’s Chief Financial Officer, William W. Harvey Jr,. as interim President and Chief Executive Officer and the Company’s Lead Director, Timothy B. Fannin, as interim Chairman of the Board.  

Mr. Harvey commented, “Everyone in the Northwest family is deeply saddened by the unexpected passing of Ron. Ron was such a strong leader during his time at Northwest and he positioned us well for the future. We are committed to carrying out his vision and strategic direction for the company.”

In relation to the quarterly results, Mr. Harvey noted, “We are pleased with the loan growth momentum generated during the quarter with organic loan growth of approximately $200.0 million, or almost 2.0%, augmented by the purchase of a $50.0 million one-to-four family jumbo mortgage loan portfolio and a $43.0 million small business equipment finance pool.  Also, during the quarter our net interest margin expanded by 32bp as a result of both an increase in market interest rates and the deployment of excess liquidity into higher yielding interest-earning assets.”

Mr. Harvey continued, “Asset quality metrics continue to improve with nonperforming and classified assets dropping to $100.0 million and $277.4 million, respectively, and total delinquency and net charge-offs falling to pre-pandemic levels. Outside of an increase in other noninterest expense related primarily to an additional $3.4 million reserve for unfunded loan commitments, we continue to see a favorable trend in expense management over the past five quarters.”

Net interest income increased by $4.5 million, or 4.7%, to $100.3 million for the quarter ended June 30, 2022, from $95.7 million for the quarter ended June 30, 2021, due primarily to a $1.5 million increase in both interest income on mortgage-backed securities and interest income on interest-earning deposits.  The increase in interest income on mortgage-backed securities was due to an increase of $196.1 million, or 11.2%, in the average balance of mortgage-backed securities in addition to an increase in the yield on mortgage-backed securities to 1.47% for the quarter ended June 30, 2022 from 1.29% for the quarter ended June 30, 2021.  The increase in interest income on interest-earning deposits was due to an increase of $35.4 million, or 4.4%, in the average balance of interest-earning deposits in addition to an increase in the yield on interest-earning deposits to 0.79% for the quarter ended June 30, 2022 from 0.09% for the quarter ended June 30, 2021. Also contributing to the increase in net interest income was a decrease in interest expense on deposits of $1.4 million, or 30.0%, primarily due to a decrease in our cost of our interest-bearing liabilities to 0.24% for the quarter ended June 30, 2022, from 0.29% for the quarter ended June 30, 2021. The net effect of the changes in interest rates and average balances was an increase in the Company’s net interest margin to 3.07% for the quarter ended June 30, 2022, from 2.91% for the same quarter last year.

The Company continued to experience improvement in asset quality as classified loans decreased by $175.7 million, or 38.8%, to $277.4 million, or 2.7% of total loans, at June 30, 2022, from $453.1 million, or 4.4% of total loans, at June 30, 2021.  Total delinquent loans also decreased to $51.1 million, or 0.49% of loans receivable, at June 30, 2022 from $68.9 million, or 0.70% of loans receivable, at June 30, 2021. In addition, annualized net charge-offs were 0.14% during the current quarter compared to 0.26% during the same quarter last year. As the result, the provision for credit losses during the current quarter remained historically low at just $2.6 million.

Noninterest income decreased by $24.3 million, or 44.3%, to $30.4 million for the quarter ended June 30, 2022, from $54.7 million for the quarter ended June 30, 2021.  This decrease was primarily due to the sale of our insurance business in the second quarter of 2021, for a pre-tax gain of $25.3 million, which also resulted in a decrease in insurance commission income of $1.0 million, or 100.0% from the quarter ended June 30, 2021. In addition, mortgage banking income decreased by $1.7 million, or 43.4%, to $2.2 million for the quarter ended June 30, 2022 from $3.8 million for the quarter ended June 30, 2021. This decrease reflects the impact of less favorable pricing in the secondary market, due primarily to the volatile interest rate environment. Offsetting these decreases was an increase in other operating income of $2.2 million, or 83.6%, to $4.9 million for the quarter ended June 30, 2022 from $2.6 million for the quarter ended June 30, 2021 due to an increase in swap fee income as well as a gain of approximately $1.0 million from the sale of branch buildings associated with the previously announced consolidation of 20 branch office facilities. 

Noninterest expense decreased by $1.5 million, or 1.8%, to $84.8 million for the quarter ended June 30, 2022 from $86.3 million for the quarter ended June 30, 2021. This decrease primarily resulted from a $2.2 million, or 14.5%, decrease in processing expense to $12.9 million for the quarter ended June 30, 2022 from $15.2 million for the quarter ended June 30, 2021 due to the investment in our technology and infrastructure during the prior year.  Also contributing to this favorable variance was an $898,000, or 21.2%, decrease in professional services to $3.3 million for the quarter ended June 30, 2022 from $4.2 million for the quarter ended June 30, 2021 due to the use of third-party experts to assist with our digital strategy rollout in the prior year.  Compensation and employee benefits also decreased by $821,000, or 1.7%, to $48.1 million for the quarter ended June 30, 2022 from $48.9 million for the quarter ended June 30, 2021, despite recognizing approximately $1.4 million of additional expenses related to the acceleration of compensation and stock benefits upon Mr. Seiffert’s passing. The decrease in compensation and employee benefits was driven primarily by the branch consolidations completed in April.  Partially offsetting these decreases was an increase in other expenses of $3.8 million to $5.2 million for the quarter ended June 30, 2022 from $1.4 million for the quarter ended June 30, 2021 due to an increase in our unfunded loan loss reserve associated with the origination of loans with current off balance sheet exposure. 

The provision for income taxes decreased by $5.3 million, or 34.9%, to $9.9 million for the quarter ended June 30, 2022, from $15.1 million for the quarter ended June 30, 2021, due primarily to a decrease in income before taxes in the current year. 

Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank. Founded in 1896 and headquartered in Warren, Pennsylvania, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of June 30, 2022, Northwest operated 142 full-service community banking offices and eight free standing drive-through facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.’s common stock is listed on the NASDAQ Global Select Market (“NWBI”). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.

Forward-Looking Statements – This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; (7) increased risk associated with commercial real-estate and business loans; and (8) the effect of any pandemic, including COVID-19, war or act of terrorism.  Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(dollars in thousands, except per share amounts)



June 30,

2022


December 31,

2021


June 30,

2021

Assets






Cash and cash equivalents

$        504,532


1,279,259


857,152

Marketable securities available-for-sale (amortized cost of $1,516,743, $1,565,002 and $1,593,813, 
respectively)

 

1,364,743


 

1,548,592


 

1,599,024

Marketable securities held-to-maturity (fair value of $835,565, $751,513 and $632,620, respectively)

923,180


768,154


639,424

Total cash and cash equivalents and marketable securities

2,792,455


3,596,005


3,095,600







Residential mortgage loans held-for-sale

31,153


25,056


29,055

Residential mortgage loans

3,255,622


2,969,564


2,925,496

Home equity loans

1,280,492


1,319,931


1,376,228

Consumer loans

2,002,545


1,838,748


1,745,231

Commercial real estate loans

2,876,176


3,015,484


3,215,189

Commercial loans

986,836


847,609


1,018,781

Total loans receivable

10,432,824


10,016,392


10,309,980

Allowance for credit losses

(98,355)


(102,241)


(117,330)

Loans receivable, net

10,334,469


9,914,151


10,192,650







FHLB stock, at cost

13,362


14,184


23,287

Accrued interest receivable

27,708


25,599


27,585

Real estate owned, net

1,205


873


1,353

Premises and equipment, net

146,869


156,524


156,076

Bank-owned life insurance

254,109


256,213


253,539

Goodwill

380,997


380,997


380,997

Other intangible assets, net

10,538


12,836


15,362

Other assets

192,983


144,126


151,607

Total assets

$   14,154,695


14,501,508


14,298,056

Liabilities and shareholders’ equity






Liabilities






Noninterest-bearing demand deposits

$     3,058,249


3,099,526


3,002,632

Interest-bearing demand deposits

2,858,691


2,940,442


2,824,219

Money market deposit accounts

2,631,712


2,629,882


2,538,607

Savings deposits

2,362,725


2,303,760


2,262,152

Time deposits

1,155,878


1,327,555


1,463,098

Total deposits

12,067,255


12,301,165


12,090,708







Borrowed funds

130,490


139,093


133,876

Subordinated debt

113,666


123,575


123,501

Junior subordinated debentures

129,184


129,054


128,924

Advances by borrowers for taxes and insurance

55,622


44,582


53,608

Accrued interest payable

1,725


1,804


1,820

Other liabilities

162,214


178,664


190,258

Total liabilities

12,660,156


12,917,937


12,722,695

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, 126,881,766, 126,612,183 and 
127,907,885 shares issued and outstanding, respectively

 

1,269


 

1,266


 

1,279

Additional paid-in capital

1,015,349


1,010,405


1,025,174

Retained earnings

620,551


609,529


595,100

Accumulated other comprehensive loss

(142,630)


(37,629)


(46,192)

Total shareholders’ equity

1,494,539


1,583,571


1,575,361

Total liabilities and shareholders’ equity

$  14,154,695


14,501,508


14,298,056







     Equity to assets 

10.56 %


10.92 %


11.02 %

     Tangible common equity to assets* 

8.01 %


8.43 %


8.48 %

     Book value per share

$            11.78


12.51


12.32

     Tangible book value per share*

$              8.69


9.40


9.22

     Closing market price per share

$            12.80


14.16


13.64

     Full time equivalent employees

2,188


2,332


2.393

     Number of banking offices

150


170


170

*  Excludes goodwill and other intangible assets (non-GAAP).

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)



Quarter ended


June 30,
2022


March 31,
2022


December 31,
2021


September 30,
2021


June 30,
2021






Interest income:










Loans receivable

$       95,574


88,174


95,295


97,475


95,255

Mortgage-backed securities

7,158


6,360


5,743


5,840


5,680

Taxable investment securities

715


677


640


649


693

Tax-free investment securities

683


674


688


628


594

FHLB stock dividends

82


81


82


71


138

Interest-earning deposits

1,684


467


467


352


192

Total interest income

105,896


96,433


102,915


105,015


102,552

Interest expense:










Deposits

3,341


3,751


4,295


4,540


4,773

Borrowed funds

2,290


2,059


1,964


2,056


2,050

Total interest expense

5,631


5,810


6,259


6,596


6,823

Net interest income

100,265


90,623


96,656


98,419


95,729

   Provision for credit losses

2,629


(1,481)


(1,909)


(4,354)


Net interest income after provision for credit losses

97,636


92,104


98,565


102,773


95,729

Noninterest income:










Loss on sale of investments

(3)


(2)


(4)


(46)


(105)

Service charges and fees

13,673


13,067


13,500


13,199


12,744

Trust and other financial services income

7,461


7,012


6,820


7,182


7,435

Insurance commission income




44


1,043

Gain/(loss) on real estate owned, net

291


(29)


71


247


166

Income from bank-owned life insurance

2,008


1,983


1,343


1,332


1,639

Mortgage banking income

2,157


1,465


2,120


3,941


3,811

Gain on sale of insurance business





25,327

Other operating income

4,861


2,244


3,192


3,287


2,648

Total noninterest income

30,448


25,740


27,042


29,186


54,708

Noninterest expense:










Compensation and employee benefits

48,073


46,917


48,691


49,063


48,894

Premises and occupancy costs

7,280


7,797


7,104


7,745


7,410

Office operations

3,162


3,383


3,144


4,143


3,317

Collections expense

403


520


602


411


303

Processing expenses

12,947


12,548


13,639


13,517


15,151

Marketing expenses

2,047


2,128


2,054


2,102


2,101

Federal deposit insurance premiums

1,130


1,129


1,131


1,184


1,353

Professional services

3,333


2,573


4,513


4,295


4,231

Amortization of intangible assets

1,115


1,183


1,205


1,321


1,433

Real estate owned expense

72


37


44


94


85

Merger, asset disposition and restructuring expense


1,374


2,812



632

Other expenses

5,245


2,355


1,346


2,227


1,422

Total noninterest expense

84,807


81,944


86,285


86,102


86,332

Income before income taxes

43,277


35,900


39,322


45,857


64,105

Income tax expense

9,851


7,613


9,266


10,794


15,138

Net income

$       33,426


28,287


30,056


35,063


48,967











Basic earnings per share

$           0.26


0.22


0.24


0.28


0.38

Diluted earnings per share

$           0.26


0.22


0.24


0.27


0.38











Annualized return on average equity

8.90 %


7.17 %


7.65 %


8.86 %


12.58 %

Annualized return on average assets

0.94 %


0.80 %


0.82 %


0.97 %


1.37 %

Annualized return on tangible common equity *

12.16 %


10.14 %


10.02 %


11.92 %


16.66 %











Efficiency ratio **

64.03 %


68.22 %


66.51 %


66.44 %


67.35 %

Annualized noninterest expense to average assets ***

2.35 %


2.23 %


2.25 %


2.33 %


2.35 %

*      Excludes goodwill and other intangible assets (non-GAAP).

**    Excludes gain on sale of insurance business, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).

***   Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)



Six months ended June 30,


2022


2021

Interest income:




Loans receivable

$                         183,748


197,573

Mortgage-backed securities

13,518


9,880

Taxable investment securities

1,392


1,327

Tax-free investment securities

1,357


1,169

FHLB stock dividends

163


254

Interest-earning deposits

2,151


375

Total interest income

202,329


210,578

Interest expense:




Deposits

7,092


10,287

Borrowed funds

4,349


4,104

Total interest expense

11,441


14,391

Net interest income

190,888


196,187

Provision for credit losses

1,148


(5,620)

Net interest income after provision for credit losses

189,740


201,807

Noninterest income:




Loss on sale of investments

(5)


(126)

Service charges and fees

26,740


25,138

Trust and other financial services income

14,473


13,919

Insurance commission income


3,589

Gain on real estate owned, net

262


124

Income from bank-owned life insurance

3,991


3,375

Mortgage banking income

3,622


9,831

Gain on sale of insurance business


25,327

Other operating income

7,105


5,484

Total noninterest income

56,188


86,661

Noninterest expense:




Compensation and employee benefits

94,990


96,133

Premises and occupancy costs

15,077


16,224

Office operations

6,545


6,482

Collections expense

923


919

Processing expenses

25,495


28,607

Marketing expenses

4,175


4,081

Federal deposit insurance premiums

2,259


2,660

Professional services

5,906


8,813

Amortization of intangible assets

2,298


3,027

Real estate owned expense

109


160

Merger, asset disposition and restructuring expense

1,374


641

Other expenses

7,600


4,776

Total noninterest expense

166,751


172,523

Income before income taxes

79,177


115,945

Income tax expense

17,464


26,741

Net income

$                           61,713


89,204





Basic earnings per share

$                               0.49


0.70

Diluted earnings per share

$                               0.49


0.70





Annualized return on average equity

8.01 %


11.61 %

Annualized return on average assets

0.87 %


1.27 %

Annualized return on tangible common equity *

11.28 %


15.26 %





Efficiency ratio **

66.00 %


65.57 %

Annualized noninterest expense to average assets ***

2.29 %


2.40 %

*      Excludes goodwill and other intangible assets (non-GAAP).

**    Excludes gain on sale of insurance business, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).

***   Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).

Northwest Bancshares, Inc. and Subsidiaries

Asset Quality (Unaudited)

(dollars in thousands)



June 30,
2022


March 31,
2022


December 31,
2021


September 30,
2021


June 30,
2021

Nonaccrual loans current:










Residential mortgage loans

$           1,970


1,884


1,354


2,015


189

Home equity loans

1,337


1,376


1,212


1,267


170

Consumer loans

976


1,148


1,336


1,465


188

Commercial real estate loans

60,537


79,810


106,233


111,075


138,820

Commercial loans

5,270


6,060


6,098


17,021


17,545

Total nonaccrual loans current

$         70,090


90,278


116,233


132,843


156,912

Nonaccrual loans delinquent 30 days to 59 days:










Residential mortgage loans

$                  2


760


244


99


68

Home equity loans

172


195


223


328


229

Consumer loans

158


190


241


152


230

Commercial real estate loans

911


333


239


205


1,589

Commercial loans

358


4


53


102


406

Total nonaccrual loans delinquent 30 days to 59 days

$           1,601


1,482


1,000


886


2,522

Nonaccrual loans delinquent 60 days to 89 days:










Residential mortgage loans

$              199


830


1,163


527


207

Home equity loans

566


371


61


142


310

Consumer loans

226


280


292


291


297

Commercial real estate loans

630



364


419


198

Commercial loans

73



218


170


21

Total nonaccrual loans delinquent 60 days to 89 days

$           1,694


1,481


2,098


1,549


1,033

Nonaccrual loans delinquent 90 days or more:










Residential mortgage loans

$           5,445


3,976


7,641


8,069


10,007

Home equity loans

2,081


2,968


4,262


4,745


6,256

Consumer loans

1,942


1,782


2,069


2,184


2,341

Commercial real estate loans

14,949


21,399


24,063


25,562


23,564

Commercial loans

583


795


1,105


1,104


4,126

Total nonaccrual loans delinquent 90 days or more

$         25,000


30,920


39,140


41,664


46,294

Total nonaccrual loans

$         98,385


124,161


158,471


176,942


206,761

Total nonaccrual loans

$         98,385


124,161


158,471


176,942


206,761

Loans 90 days past due and still accruing

379


420


331


386


302

Nonperforming loans

98,764


124,581


158,802


177,328


207,063

Real estate owned, net

1,205


929


873


809


1,353

Nonperforming assets

$         99,969


125,510


159,675


178,137


208,416

Nonaccrual troubled debt restructuring *

$         37,647


16,015


17,216


12,858


8,951

Accruing troubled debt restructuring

16,590


12,686


13,072


13,664


18,480

Total troubled debt restructuring

$         54,237


28,701


30,288


26,522


27,431











Nonperforming loans to total loans

0.95 %


1.23 %


1.59 %


1.74 %


2.01 %

Nonperforming assets to total assets

0.71 %


0.87 %


1.10 %


1.24 %


1.46 %

Allowance for credit losses to total loans

0.94 %


0.98 %


1.02 %


1.08 %


1.14 %

Allowance for total loans excluding PPP loan balances

0.95 %


0.98 %


1.03 %


1.09 %


1.17 %

Allowance for credit losses to nonperforming loans

99.59 %


79.70 %


64.38 %


61.90 %


56.66 %

*  Amounts included in nonperforming loans above.

Northwest Bancshares, Inc. and Subsidiaries

Loans by Credit Quality Indicators (Unaudited)

(dollars in thousands)


At June 30, 2022


Pass


Special

   mention *


Substandard

**


Doubtful


Loss


Loans

receivable

Personal Banking:













Residential mortgage loans


$       3,273,117



13,658




3,286,775

Home equity loans


1,275,124



5,368




1,280,492

Consumer loans


1,998,863



3,682




2,002,545

Total Personal Banking


6,547,104



22,708




6,569,812

Commercial Banking:













Commercial real estate loans


2,600,207


51,540


224,429




2,876,176

Commercial loans


954,129


2,468


30,239




986,836

Total Commercial Banking


3,554,336


54,008


254,668




3,863,012

Total loans


$     10,101,440


54,008


277,376




10,432,824

At March 31, 2022













Personal Banking:













Residential mortgage loans


$       3,108,366



13,523




3,121,889

Home equity loans


1,280,342



6,178




1,286,520

Consumer loans


1,892,162



3,819




1,895,981

Total Personal Banking


6,280,870



23,520




6,304,390

Commercial Banking:













Commercial real estate loans


2,633,808


62,091


263,994




2,959,893

Commercial loans


839,125


3,277


32,349




874,751

Total Commercial Banking


3,472,933


65,368


296,343




3,834,644

Total loans


$       9,753,803


65,368


319,863




10,139,034

At December 31, 2021













Personal Banking:













Residential mortgage loans


$       2,978,080



16,540




2,994,620

Home equity loans


1,312,820



7,111




1,319,931

Consumer loans


1,834,478



4,270




1,838,748

Total Personal Banking


6,125,378



27,921




6,153,299

Commercial Banking:













Commercial real estate loans


2,639,676


74,123


301,685




3,015,484

Commercial loans


808,323


5,730


33,556




847,609

Total Commercial Banking


3,447,999


79,853


335,241




3,863,093

Total loans


$       9,573,377


79,853


363,162




10,016,392

At September 30, 2021













Personal Banking:













Residential mortgage loans


$       2,972,489



17,032




2,989,521

Home equity loans


1,342,479



7,869




1,350,348

Consumer loans


1,812,360



4,476




1,816,836

Total Personal Banking


6,127,328



29,377




6,156,705

Commercial Banking:













Commercial real estate loans


2,799,592


63,034


299,925




3,162,551

Commercial loans


813,665


10,976


55,071




879,712

Total Commercial Banking


3,613,257


74,010


354,996




4,042,263

Total loans


$       9,740,585


74,010


384,373




10,198,968

At June 30, 2021













Personal Banking:













Residential mortgage loans


$       2,937,418



17,133




2,954,551

Home equity loans


1,367,765



8,463




1,376,228

Consumer loans


1,741,872



3,359




1,745,231

Total Personal Banking


6,047,055



28,955




6,076,010

Commercial Banking:













Commercial real estate loans


2,781,734


73,167


360,288




3,215,189

Commercial loans


943,665


11,266


63,850




1,018,781

Total Commercial Banking


3,725,399


84,433


424,138




4,233,970

Total loans


$       9,772,454


84,433


453,093




10,309,980

*  Includes $7.4 million, $4.4 million, $14.9 million, $16.7 million, and $16.7 million of acquired loans at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively.

**  Includes $59.3 million, $71.9 million, $81.5 million, $110.4 million, and $122.5 million of acquired loans at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively.

Northwest Bancshares, Inc. and Subsidiaries

Loan Delinquency (Unaudited)

(dollars in thousands)



June 30,
2022


*


March 31,
2022


*


December 31,
2021


*


September 30,
2021


*


June 30,
2021


*

(Number of loans and dollar amount of loans)






























Loans delinquent 30 days to 59 days:






























Residential mortgage loans

20


$      785


— %


281


$  24,057


0.8 %


277


$  20,567


0.7 %


17


$      765


— %


13


$      606


— %

Home equity loans

107


3,664


0.3 %


105


3,867


0.3 %


112


3,153


0.2 %


101


3,351


0.2 %


91


3,677


0.3 %

Consumer loans

563


6,898


0.3 %


523


6,043


0.3 %


589


6,536


0.4 %


576


6,146


0.3 %


532


5,571


0.3 %

Commercial real estate loans

26


2,701


0.1 %


25


3,643


0.1 %


17


17,065


0.6 %


19


2,004


0.1 %


13


2,857


0.1 %

Commercial loans

24


1,486


0.2 %


16


1,268


0.1 %


12


193


— %


10


692


0.1 %


15


686


0.1 %

Total loans delinquent 30 days to 59 days

740


$  15,534


0.1 %


950


$  38,878


0.4 %


1,007


$  47,514


0.5 %


723


$  12,958


0.1 %


664


$  13,397


0.1 %































Loans delinquent 60 days to 89 days:






























Residential mortgage loans

61


$   5,941


0.2 %


24


$   1,950


0.1 %


59


$   5,433


0.2 %


55


$   4,907


0.2 %


58


$   4,051


0.1 %

Home equity loans

28


952


0.1 %


28


1,138


0.1 %


30


949


0.1 %


29


1,024


0.1 %


36


1,502


0.1 %

Consumer loans

178


1,460


0.1 %


159


1,839


0.1 %


195


2,006


0.1 %


180


1,757


0.1 %


181


1,988


0.1 %

Commercial real estate loans

9


1,472


0.1 %


1


112


— %


5


769


— %


8


1,170


— %


9


1,335


— %

Commercial loans

6


341


— %


3


103


— %


10


727


0.1 %


2


170


— %


2


27


— %

Total loans delinquent 60 days to 89 days

282


$  10,166


0.1 %


215


$   5,142


0.1 %


299


$   9,884


0.1 %


274


$   9,028


0.1 %


286


$   8,903


0.1 %































Loans delinquent 90 days or more: **






























Residential mortgage loans

63


$   5,445


0.2 %


47


$   3,976


0.1 %


87


$   7,641


0.3 %


95


$   8,069


0.3 %


115


$  10,007


0.3 %

Home equity loans

69


2,081


0.2 %


91


2,968


0.2 %


105


4,262


0.3 %


119


4,745


0.4 %


146


6,256


0.5 %

Consumer loans

286


2,321


0.1 %


287


2,202


0.1 %


296


2,400


0.1 %


308


2,568


0.1 %


356


2,643


0.2 %

Commercial real estate loans

31


14,949


0.5 %


41


21,399


0.7 %


52


24,063


0.8 %


59


25,562


0.8 %


83


23,564


0.7 %

Commercial loans

10


583


0.1 %


10


795


0.1 %


8


1,105


0.1 %


10


1,104


0.1 %


18


4,126


0.4 %

Total loans delinquent 90 days or more

459


$  25,379


0.2 %


476


$  31,340


0.3 %


548


$  39,471


0.4 %


591


$  42,048


0.4 %


718


$  46,596


0.5 %































Total loans delinquent

1,481


$  51,079


0.5 %


1,641


$  75,360


0.7 %


1,854


$  96,869


1.0 %


1,588


$  64,034


0.6 %


1,668


$  68,896


0.7 %

*  Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.

**  Includes purchased credit deteriorated loans of $6.3 million, $7.1 million, $7.3 million, $8.4 million, and $10.3 million at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively.

Northwest Bancshares, Inc. and Subsidiaries

Allowance for Credit Losses (Unaudited)

(dollars in thousands)



Quarter ended


June 30,
2022


March 31,
2022


December 31,
2021


September 30,
2021


June 30,
2021

Beginning balance

$        99,295


102,241


109,767


117,330


123,997

Provision

2,629


(1,481)


(1,909)


(4,354)


Charge-offs residential mortgage

(138)


(1,183)


(784)


(1,263)


(770)

Charge-offs home equity

(255)


(447)


(1,299)


(1,474)


(379)

Charge-offs consumer

(1,912)


(1,723)


(2,897)


(2,148)


(2,401)

Charge-offs commercial real estate

(4,392)


(1,024)


(2,652)


(1,581)


(3,964)

Charge-offs commercial

(329)


(681)


(2,586)


(412)


(1,161)

Recoveries

3,457


3,593


4,601


3,669


2,008

Ending balance

$        98,355


99,295


102,241


109,767


117,330

Net charge-offs to average loans, annualized

0.14 %


0.06 %


0.22 %


0.12 %


0.26 %


Six months ended June 30,


2022


2021

Beginning balance                                                                                                                 

$                    102,241


134,427

Provision

1,148


(5,620)

Charge-offs residential mortgage

(1,321)


(1,625)

Charge-offs home equity

(702)


(607)

Charge-offs consumer

(3,635)


(5,004)

Charge-offs commercial real estate

(5,416)


(8,590)

Charge-offs commercial

(1,010)


(1,215)

Recoveries

7,050


5,564

Ending balance

$                      98,355


117,330

Net charge-offs to average loans, annualized

0.10 %


0.22 %

Northwest Bancshares, Inc. and Subsidiaries
Average Balance Sheet (Unaudited)
(dollars in thousands) 

 

The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages. 


Quarter ended 


June 30, 2022


March 31, 2022


December 31, 2021


September 30, 2021


June 30, 2021


Average

balance


Interest


Avg.

yield/

cost (i)


Average

balance


Interest


Avg.

yield/

cost (i)


Average

balance


Interest


Avg.

yield/

cost (i)


Average

balance


Interest


Avg.

yield/

cost (i)


Average

balance


Interest


Avg.

yield/

cost (i)

Assets:






























Interest-earning assets:






























Residential mortgage loans

$  3,171,469


27,327


3.45 %


$  2,980,788


25,542


3.43 %


$  2,977,942


25,269


3.39 %


$  2,959,794


25,398


3.43 %


$  2,935,034


25,609


3.49 %

Home equity loans

1,277,440


11,961


3.76 %


1,293,986


11,472


3.60 %


1,328,553


11,750


3.51 %


1,356,131


11,993


3.51 %


1,380,794


12,232


3.55 %

Consumer loans

1,880,769


15,777


3.36 %


1,799,037


14,907


3.36 %


1,756,620


15,514


3.50 %


1,728,563


16,220


3.72 %


1,589,739


14,555


3.67 %

Commercial real estate loans

2,915,750


31,844


4.32 %


3,000,204


29,757


3.97 %


3,113,924


34,062


4.28 %


3,205,839


35,305


4.31 %


3,257,810


33,349


4.05 %

Commercial loans

912,454


9,090


3.94 %


824,770


6,897


3.34 %


855,998


9,154


4.18 %


975,603


9,096


3.65 %


1,133,969


9,978


3.48 %

Total loans receivable (a) (b) (d)

10,157,882


95,999


3.79 %


9,898,785


88,575


3.63 %


10,033,037


95,749


3.79 %


10,225,930


98,012


3.80 %


10,297,346


95,723


3.73 %

Mortgage-backed securities (c)

1,952,375


7,158


1.47 %


1,945,173


6,360


1.31 %


1,894,683


5,743


1.21 %


1,832,876


5,840


1.27 %


1,756,227


5,680


1.29 %

Investment securities (c) (d)

376,935


1,590


1.69 %


373,694


1,540


1.65 %


358,558


1,535


1.71 %


348,619


1,466


1.68 %


364,414


1,466


1.61 %

FHLB stock, at cost

13,428


82


2.44 %


13,870


81


2.38 %


14,459


82


2.25 %


21,607


71


1.31 %


23,107


138


2.40 %

Other interest-earning deposits

846,142


1,684


0.79 %


1,218,960


467


0.15 %


1,168,449


467


0.16 %


905,130


352


0.15 %


810,741


192


0.09 %

Total interest-earning assets

13,346,762


106,513


3.20 %


13,450,482


97,023


2.93 %


13,469,186


103,576


3.05 %


13,334,162


105,741


3.15 %


13,251,835


103,199


3.12 %

Noninterest-earning assets (e)

909,943






973,092






1,004,905






1,074,122






1,104,924





Total assets

$   14,256,705






$   14,423,574






$   14,474,091






$   14,408,284






$   14,356,759





Liabilities and shareholders’ equity:






























Interest-bearing liabilities:






























Savings deposits

$  2,361,919


589


0.10 %


$  2,334,494


592


0.10 %


$  2,282,606


622


0.11 %


$  2,271,365


603


0.11 %


$  2,255,578


590


0.10 %

Interest-bearing demand deposits

2,857,336


310


0.04 %


2,875,430


321


0.05 %


2,933,466


411


0.06 %


2,890,905


414


0.06 %


2,840,949


407


0.06 %

Money market deposit accounts

2,653,467


668


0.10 %


2,668,105


653


0.10 %


2,618,177


656


0.10 %


2,565,159


637


0.10 %


2,537,629


621


0.10 %

Time deposits

1,220,815


1,774


0.58 %


1,292,608


2,185


0.69 %


1,356,513


2,606


0.76 %


1,423,041


2,886


0.80 %


1,493,947


3,155


0.85 %

Borrowed funds (f)

123,749


167


0.54 %


135,289


158


0.47 %


135,038


159


0.47 %


131,199


154


0.47 %


131,240


150


0.46 %

Subordinated debt (g)

119,563


1,203


4.03 %


123,608


1,250


4.05 %


123,514


1,180


3.82 %


123,513


1,277


4.10 %


123,443


1,264


4.11 %

Junior subordinated debentures

129,142


920


2.82 %


129,077


651


2.02 %


129,012


625


1.89 %


128,946


625


1.90 %


128,882


636


1.95 %

Total interest-bearing liabilities

9,465,991


5,631


0.24 %


9,558,611


5,810


0.25 %


9,578,326


6,259


0.26 %


9,534,128


6,596


0.27 %


9,511,668


6,823


0.29 %

Noninterest-bearing demand deposits (h)

3,090,372






3,060,698






3,093,518






3,058,819






3,036,202





Noninterest-bearing liabilities

193,510






203,537






242,620






244,402






247,930





Total liabilities

12,749,873






12,822,846






12,914,464






12,837,349






12,795,800





Shareholders’ equity

1,506,832






1,600,728






1,559,627






1,570,935






1,560,959





Total liabilities and shareholders’ equity

$   14,256,705






$   14,423,574






$   14,474,091






$   14,408,284






$   14,356,759





Net interest income/Interest rate spread



100,882


2.96 %




91,213


2.68 %




97,317


2.79 %




99,145


2.87 %




96,376


2.84 %

Net interest-earning assets/Net interest margin

$  3,880,771




3.07 %


$  3,891,871




2.75 %


$  3,890,860




2.89 %


$  3,800,034




2.97 %


$  3,740,167




2.91 %

Ratio of interest-earning assets to interest-bearing liabilities

1.41X






1.41X






1.41X






1.40X






1.39X







(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) 

On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity of September 15, 2030.

(h) 

Average cost of deposits were 0.11%, 0.12%, 0.14%, 0.15%, and 0.16%, respectively.

(i) 

Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans — 3.77%, 3.61%, 3.77%, 3.79%, and 3.71%, respectively, Investment securities — 1.48%, 1.45%, 1.48%, 1.47%, and 1.41%, respectively, Interest-earning assets — 3.18%, 2.91%, 3.03%, 3.13%, and 3.10%, respectively. GAAP basis net interest rate spreads were 2.94%, 2.66%, 2.77%, 2.86%, and 2.82%, respectively, and GAAP basis net interest margins were 3.05%, 2.73%, 2.87%, 2.95%, and 2.89%, respectively.

Northwest Bancshares, Inc. and Subsidiaries
Average Balance Sheet (Unaudited)
(in thousands)

 

The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages.


Six months ended June 30,


2022


2021


Average

balance


Interest


Avg.

yield/

cost (i)


Average

balance


Interest


Avg.

yield/

cost (i)

Assets












Interest-earning assets:












Residential mortgage loans

$     3,077,155


52,868


3.44 %


$     2,971,037


51,975


3.50 %

Home equity loans

1,285,668


23,433


3.68 %


1,406,260


25,046


3.57 %

Consumer loans

1,840,110


30,684


3.36 %


1,526,861


29,121


3.82 %

Commercial real estate loans

2,957,744


61,601


4.14 %


3,285,696


71,820


4.32 %

Commercial loans

868,854


15,987


3.66 %


1,161,736


20,543


3.50 %

Loans receivable (a) (b) (d)

10,029,531


184,573


3.71 %


10,351,590


198,505


3.85 %

Mortgage-backed securities (c)

1,948,794


13,518


1.39 %


1,541,585


9,880


1.28 %

Investment securities (c) (d)

375,323


3,130


1.67 %


347,977


2,847


1.64 %

FHLB stock, at cost

13,648


163


2.41 %


22,462


254


2.27 %

Other interest-earning deposits

1,003,627


2,151


0.43 %


805,930


375


0.09 %

Total interest-earning assets

13,370,923


203,535


3.07 %


13,069,544


211,861


3.25 %

Noninterest-earning assets (e)

969,111






1,103,734

















Total assets

$   14,340,034






$   14,173,278

















Liabilities and shareholders’ equity












Interest-bearing liabilities:












Savings deposits

$     2,348,282


1,181


0.10 %


$     2,187,184


1,215


0.11 %

Interest-bearing demand deposits

2,866,333


631


0.04 %


2,812,348


836


0.06 %

Money market deposit accounts

2,660,745


1,321


0.10 %


2,517,673


1,278


0.10 %

Time deposits

1,256,513


3,959


0.64 %


1,538,489


6,959


0.91 %

Borrowed funds (f)

129,487


324


0.50 %


137,488


303


0.44 %

Subordinated debt (g)

121,574


2,454


4.04 %


123,400


2,522


4.10 %

Junior subordinated debentures

129,109


1,571


2.42 %


128,850


1,278


1.96 %

Total interest-bearing liabilities

9,512,043


11,441


0.24 %


9,445,432


14,391


0.31 %

Noninterest-bearing demand deposits (h)

3,075,617






2,921,343





Noninterest-bearing liabilities

198,854






256,748

















Total liabilities

12,786,514






12,623,523

















Shareholders’ equity

1,553,520






1,549,755

















Total liabilities and shareholders’ equity

$   14,340,034






$   14,173,278

















Net interest income/Interest rate spread



192,094


2.83 %




197,470


2.94 %













Net interest-earning assets/Net interest margin

$     3,858,880




2.87 %


$     3,624,112




3.02 %













Ratio of interest-earning assets to interest-bearing liabilities

1.41X






1.38X







(a) 

Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.

(b) 

Interest income includes accretion/amortization of deferred loan fees/expenses, which were not material.

(c)

 Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(d) 

Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent (“FTE”) basis.

(e)

 Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.

(f)  

Average balances include FHLB borrowings and collateralized borrowings.

(g) 

On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity of September 15, 2030. 

(h) 

Average cost of deposits were 0.12% and 0.17%, respectively.

(i)   

Shown on a FTE basis. GAAP basis yields were: Loans — 3.69% and 3.83%, respectively; Investment securities — 1.46% and 1.43%, respectively; Interest-earning assets — 3.05% and 3.23%, respectively. GAAP basis net interest rate spreads were 2.81% and 2.92%, respectively; and GAAP basis net interest margins were 2.86% and 3.00%, respectively.

SOURCE Northwest Bancshares, Inc.

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