Northwest Bancshares, Inc. Announces Third Quarter 2018 Earnings and Quarterly Dividend

Northwest Bancshares, Inc. Announces Third Quarter 2018 Earnings and Quarterly Dividend

PR Newswire

WARREN, Pa., Oct. 22, 2018 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), NWBI announced net income for the quarter ended September 30, 2018 of $27.7 million, or $0.27 per diluted share. This represents an increase of $4.1 million, or 17.6%, compared to the same quarter last year when net income was $23.6 million or $0.23 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended September 30, 2018 were 8.93% and 1.15% compared to 7.81% and 0.99% for the same quarter last year.

Northwest Bank (PRNewsfoto/Northwest Bank)

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.17 per share payable on November 15, 2018, to shareholders of record as of November 1, 2018. This is the 96th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's stock as of September 30, 2018, this represents an annualized dividend yield of approximately 4.0%.

In making this announcement, Ronald J. Seiffert, President and CEO, noted, "Overall we were pleased with the third quarter results despite elevated charge-offs and two large commercial loan payoffs. Net charge-offs of $8.3 million were largely impacted by a $4.6 million write down of a land development loan in our western New York region. The remaining loan amount of approximately $8.4 million also negatively impacted our 90 day delinquency for the quarter. In addition, commercial loan growth for the quarter was stunted by two large payoffs totaling approximately $71.0 million, one in our New York region, which was a previously criticized loan, and one in our corporate finance division in the Pittsburgh market which was refinanced by a bond issuance."

Mr. Seiffert continued "Despite these two challenging circumstances, we still experienced an increase in net income from the prior year and the linked second quarter with earnings per share of $0.27. We were particularly pleased with the expansion of our net interest margin by 6 basis points compared to last year as well as with our efficiency ratio dropping below 60.0%."

Net interest income increased by $2.6 million, or 3.1%, to $85.8 million for the quarter ended September 30, 2018, from $83.2 million for the quarter ended September 30, 2017 primarily due to a $5.4 million, or 6.3%, increase in interest income on loans receivable. This increase was primarily the result of an increase in the average balance of loans receivable of $261.0 million, or 3.4%, and an increase in the average yield on loans receivable of eleven basis points as a result of the recent increases in market interest rates. Partially offsetting this improvement was an increase in interest expense on deposits of $2.4 million, or 42.1%, due to the aforementioned increases in market interest rates. The net impact of these changes caused the Company's net interest margin to increase to 3.92% for the quarter ended September 30, 2018 from 3.86% for the same quarter last year.

The provision for loan losses increased by $4.0 million, or 130.7%, to $7.0 million for the quarter ended September 30, 2018, from $3.0 million for the quarter ended September 30, 2017. This increase is due primarily to the loan write-down discussed above as well as the recalculation of the quantitative and qualitative factors used to determine the allowance for loan losses.

Noninterest income decreased by $2.0 million, or 8.3%, to $22.6 million for the quarter ended September 30, 2018, from $24.6 million for the quarter ended September 30, 2017. This decrease was due primarily to a $1.5 million gain on the sale of investments realized during the quarter ended September 30, 2017. Additionally, trust and other financial services income decreased by $539,000, or 11.2%, compared to the same quarter last year primarily as a result of the sale of the Company's retirement services subsidiary in the fourth quarter of 2017.

Noninterest expense decreased by $2.2 million, or 3.2%, to $66.6 million for the quarter ended September 30, 2018, from $68.8 million for the quarter ended September 30, 2017. This decrease resulted primarily from a $1.2 million, or 86.7%, decrease in restructuring/ acquisition expense due primarily to the restructuring that occurred during 2017, including the closure of the Company's consumer finance subsidiary. Most of the other noninterest expense categories also decreased due to the favorable impact of the changes made in the prior year including the sale of the Company's Maryland branches and retirement services subsidiary, along with the closure of the consumer finance subsidiary.

Income tax expense decreased by $5.4 million, or 43.3%, to $7.0 million for the quarter ended September 30, 2018, from $12.4 million for the quarter ended September 30, 2017. This decrease resulted primarily from the enactment of the Tax Cuts and Jobs Act in December 2017. The Company's effective tax rate, which includes both federal and state income taxes, decreased to 20.2% for the quarter ended September 30, 2018 from 34.5% for the quarter ended September 30, 2017. Additionally, income before tax decreased by $1.2 million, or 3.4%, to $34.8 million for the quarter ended September 30, 2018 from $36.0 million for the quarter ended September 30, 2017.

Net income for the nine month period ended September 30, 2018 was $79.0 million, or $0.76 per diluted share. This represents an increase of $6.7 million, or 9.3%, compared to the nine month period ended September 30, 2017, when net income was $72.3 million, or $0.71 per diluted share. The annualized returns on average shareholders' equity and average assets for the nine month period ended September 30, 2018 were 8.67% and 1.11% compared to 8.16% and 1.01% for the same period last year. This increase in net income was the result of an increase in net interest income after provision of $2.0 million, or 0.8%, a reduction in noninterest expense of $9.9 million, or 4.6%, and a lower effective tax rate as a result of the Tax Cuts and Jobs Act.

Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. Northwest operates 162 full-service community banking offices and ten free standing drive-through facilities in Pennsylvania, New York and Ohio. Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.

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

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(Dollars in thousands, except per share amounts)





September 30,

 2018



December 31,

 2017



September 30,

 2017

Assets











Cash and cash equivalents

$

73,946





77,710





165,676



Marketable securities available-for-sale (amortized cost of $829,345, $800,094 and $867,311, respectively)

811,556





792,535





869,481



Marketable securities held-to-maturity (fair value of $23,534, $29,667 and $32,282, respectively)

24,222





29,678





31,961



Total cash and cash equivalents and marketable securities

909,724





899,923





1,067,118















Residential mortgage loans held for sale





3,128





1,382



Residential mortgage loans

2,846,834





2,773,075





2,741,844



Home equity loans

1,272,345





1,310,355





1,313,435



Consumer loans

776,049





671,389





673,920



Commercial real estate loans

2,518,066





2,454,726





2,398,886



Commercial loans

582,768





580,736





596,671



Total loans receivable

7,996,062





7,793,409





7,726,138



Allowance for loan losses

(55,975)





(56,795)





(56,927)



Loans receivable, net

7,940,087





7,736,614





7,669,211















Federal Home Loan Bank stock, at cost

15,452





11,733





7,984



Accrued interest receivable

25,798





23,352





22,802



Real estate owned, net

2,486





5,666





5,462



Premises and equipment, net

144,612





151,944





152,761



Bank owned life insurance

170,042





171,547





173,096



Goodwill

307,420





307,420





307,420



Other intangible assets

21,167





25,669





27,244



Other assets

38,543





30,066





26,716



Total assets

$

9,575,331





9,363,934





9,459,814















Liabilities and shareholders' equity











Liabilities











Noninterest-bearing demand deposits

$

1,724,202





1,610,409





1,625,189



Interest-bearing demand deposits

1,499,344





1,442,928





1,451,818



Money market deposit accounts

1,676,845





1,707,450





1,759,395



Savings deposits

1,650,357





1,653,579





1,669,782



Time deposits

1,403,205





1,412,623





1,435,861



Total deposits

7,953,953





7,826,989





7,942,045















Borrowed funds

179,117





108,238





115,388



Advances by borrowers for taxes and insurance

23,297





40,825





21,864



Accrued interest payable

627





460





518



Other liabilities

66,448





68,485





62,939



Junior subordinated debentures

111,213





111,213





111,213



Total liabilities

8,334,655





8,156,210





8,253,967















Shareholders' equity











Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued











Common stock, $0.01 par value, 500,000,000 shares authorized, 103,293,480 shares, 102,394,828 shares and 102,565,667 shares issued and outstanding, respectively

1,033





1,027





1,026



Paid-in-capital

742,863





730,719





728,163



Retained earnings

541,469





508,058





502,265



Accumulated other comprehensive loss

(44,689)





(32,080)





(25,607)



Total shareholders' equity

1,240,676





1,207,724





1,205,847



Total liabilities and shareholders' equity

$

9,575,331





9,363,934





9,459,814















Equity to assets

12.96

%



12.90

%



12.75

%

Tangible common equity to assets

9.86

%



9.68

%



9.55

%

Book value per share

$

12.01





11.79





11.76



Tangible book value per share

$

8.83





8.54





8.49



Closing market price per share

$

17.32





16.73





17.27



Full time equivalent employees

2,133





2,106





2,137



Number of banking offices

172





172





173





 

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share amounts)





Quarter ended



September 30,



June 30,



March 31,



December 31,



September 30,



2018



2018



2018



2017



2017

Interest income:



















Loans receivable

$

90,733





88,106





85,220





87,154





85,373



Mortgage-backed securities

3,572





3,254





3,013





3,016





3,118



Taxable investment securities

814





648





678





805





957



Tax-free investment securities

205





313





390





449





476



FHLB dividends

119





85





97





78





63



Interest-earning deposits

162





469





135





59





244



Total interest income

95,605





92,875





89,533





91,561





90,231























Interest expense:



















Deposits

8,233





7,309





6,458





5,971





5,795



Borrowed funds

1,555





1,340





1,308





1,350





1,199



Total interest expense

9,788





8,649





7,766





7,321





6,994























Net interest income

85,817





84,226





81,767





84,240





83,237



Provision for loan losses

6,982





5,349





4,209





6,525





3,027



Net interest income after provision for loan losses

78,835





78,877





77,558





77,715





80,210























Noninterest income:



















Gain/ (loss) on sale of investments









153





(369)





1,497



Service charges and fees

13,158





12,908





11,899





12,527





12,724



Trust and other financial services income

4,254





4,050





4,031





4,290





4,793



Insurance commission income

2,046





2,090





2,749





1,874





1,992



Gain/ (loss) on real estate owned, net

(247)





176





(546)





(307)





(193)



Income from bank owned life insurance

1,460





2,333





990





2,295





1,078



Mortgage banking income

82





77





224





225





519



Other operating income

1,804





2,475





2,288





2,370





2,184



Total noninterest income

22,557





24,109





21,788





22,905





24,594























Noninterest expense:



















Compensation and employee benefits

37,535





39,031





36,510





39,293





36,556



Premises and occupancy costs

6,821





6,824





7,307





7,293





6,951



Office operations

3,508





3,768





3,408





4,011





3,939



Collections expense

483





434





512





1,179





568



Processing expenses

9,620





9,560





9,706





9,888





9,650



Marketing expenses

1,949





2,014





2,140





2,125





2,488



Federal deposit insurance premiums

721





671





717





724





771



Professional services

2,368





2,819





2,277





2,945





2,321



Amortization of intangible assets

1,462





1,520





1,520





1,575





1,691



Real estate owned expense

205





133





292





195





310



Restructuring/ acquisition expense

186





393









164





1,398



Other expense

1,759





2,620





3,032





2,504





2,156



Total noninterest expense

66,617





69,787





67,421





71,896





68,799



Income before income taxes

34,775





33,199





31,925





28,724





36,005























Income tax expense

7,035





6,900





6,940





6,576





12,414



Net income

$

27,740





26,299





24,985





22,148





23,591























Basic earnings per share

$

0.27





0.26





0.25





0.22





0.23



Diluted earnings per share

$

0.27





0.25





0.24





0.22





0.23























Weighted average common shares outstanding - basic



102,334,954







101,870,043







101,598,928







101,293,307







101,163,534



Weighted average common shares outstanding - diluted



103,942,695







103,424,154







103,136,497







102,643,726







102,564,476























Annualized return on average equity

8.93

%



8.67

%



8.40

%



7.31

%



7.81

%

Annualized return on average assets

1.15

%



1.11

%



1.08

%



0.94

%



0.99

%

Annualized return on tangible common equity

12.07

%



11.74

%



11.47

%



10.05

%



10.74

%





















Efficiency ratio *

59.95

%



62.65

%



63.64

%



65.48

%



60.94

%

Annualized noninterest expense to average assets *

2.70

%



2.87

%



2.97

%



2.76

%



2.76

%



* Excludes restructuring/ acquisition expenses and amortization of intangible assets (non-GAAP).

 

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share amounts)





Nine months ended September 30,



2018



2017

Interest income:







Loans receivable

$

264,059





252,838



Mortgage-backed securities

9,839





8,327



Taxable investment securities

2,140





2,944



Tax-free investment securities

908





1,574



FHLB dividends

301





172



Interest-earning deposits

766





1,440



Total interest income

278,013





267,295











Interest expense:







Deposits

22,000





17,086



Borrowed funds

4,203





3,664



Total interest expense

26,203





20,750











Net interest income

251,810





246,545



Provision for loan losses

16,540





13,226



Net interest income after provision for loan losses

235,270





233,319











Noninterest income:







Gain on sale of investments

153





1,517



Service charges and fees

37,965





37,190



Trust and other financial services income

12,335





13,697



Insurance commission income

6,885





7,139



Loss on real estate owned, net

(617)





(490)



Income from bank owned life insurance

4,783





3,798



Mortgage banking income

383





1,193



Gain on sale of offices





17,186



Other operating income

6,567





6,345



Total noninterest income

68,454





87,575











Noninterest expense:







Compensation and employee benefits

113,076





113,003



Premises and occupancy costs

20,952





21,570



Office operations

10,684





12,331



Collections expense

1,429





1,670



Processing expenses

28,886





29,198



Marketing expenses

6,103





7,482



Federal deposit insurance premiums

2,109





2,794



Professional services

7,464





7,348



Amortization of intangible assets

4,502





5,189



Real estate owned expense

630





809



Restructuring/ acquisition expense

579





4,255



Other expense

7,411





8,058



Total noninterest expense

203,825





213,707



Income before income taxes

99,899





107,187











Income tax expense

20,875





34,868



Net income

$

79,024





72,319











Basic earnings per share

$

0.78





0.72



Diluted earnings per share

$

0.76





0.71











Weighted average common shares outstanding - basic



101,937,338







100,921,322



Weighted average common shares outstanding - diluted



103,504,069







102,538,342











Annualized return on average equity

8.67

%



8.16

%

Annualized return on average assets

1.11

%



1.01

%

Annualized return on tangible common equity

11.58

%



11.10

%









Efficiency ratio *

62.06

%



64.45

%

Annualized noninterest expense to average assets *

2.80

%



2.86

%



* Excludes gain on sale of offices, restructuring/ acquisition expenses, and amortization of intangible assets (non-GAAP).

 

 



Northwest Bancshares, Inc. and Subsidiaries

Asset quality (Unaudited)

(Dollars in thousands)





September 30,

 2018



June 30,

 2018



March 31,

 2018



December 31,

 2017



September 30,

 2017

Nonaccrual loans current:



















Residential mortgage loans

$

869





669





123





70





318



Home equity loans

496





237





269





615





439



Consumer loans

126





218





178





317





260



Commercial real estate loans

10,905





14,814





11,355





10,080





10,646



Commercial loans

1,972





2,559





2,381





4,178





4,098



Total nonaccrual loans current

$

14,368





18,497





14,306





15,260





15,761























Nonaccrual loans delinquent 30 days to 59 days:



















Residential mortgage loans

$

15





89





1,290





509





200



Home equity loans

333





221





232





167





466



Consumer loans

182





192





224





239





200



Commercial real estate loans

3,124





522





975





1,928





597



Commercial loans

150





51





140





25







Total nonaccrual loans delinquent 30 days to 59 days

$

3,804





1,075





2,861





2,868





1,463























Nonaccrual loans delinquent 60 days to 89 days:



















Residential mortgage loans

$

547





668





755





703





892



Home equity loans

418





483





465





874





499



Consumer loans

464





194





224





500





405



Commercial real estate loans

1,872





1,682





399





1,104





5,895



Commercial loans

352





380





80





69





3



Total nonaccrual loans delinquent 60 days to 89 days

$

3,653





3,407





1,923





3,250





7,694























Nonaccrual loans delinquent 90 days or more:



















Residential mortgage loans

$

13,154





11,822





10,660





13,509





11,785



Home equity loans

5,838





6,729





6,707





7,251





6,295



Consumer finance loans

39





15





3





199





332



Consumer loans

3,535





2,626





2,931





3,617





3,244



Commercial real estate loans

27,122





15,617





16,145





15,361





22,583



Commercial loans

2,714





2,925





3,144





3,140





4,177



Total nonaccrual loans delinquent 90 days or more

$

52,402





39,734





39,590





43,077





48,416























Total nonaccrual loans

$

74,227





62,713





58,680





64,455





73,334























Total nonaccrual loans

$

74,227





62,713





58,680





64,455





73,334



Loans 90 days past maturity and still accruing

195





94





210





502





398



Nonperforming loans

74,422





62,807





58,890





64,957





73,732



Real estate owned, net

2,486





2,722





4,041





5,666





5,462



Nonperforming assets

$

76,908





65,529





62,931





70,623





79,194























Nonaccrual troubled debt restructuring *

$

9,777







10,860





11,217





12,285





17,809



Accruing troubled debt restructuring

19,370





19,802





19,749





19,819





20,660



Total troubled debt restructuring

$

29,147





30,662





30,966





32,104





38,469























Nonperforming loans to total loans

0.93

%



0.79

%



0.75

%



0.83

%



0.95

%

Nonperforming assets to total assets

0.80

%



0.69

%



0.66

%



0.75

%



0.84

%

Allowance for loan losses to total loans

0.70

%



0.72

%



0.70

%



0.73

%



0.74

%

Allowance for loan losses to nonperforming loans

75.21

%



91.28

%



93.75

%



87.43

%



77.16

%



































* Amounts included in nonperforming loans above.

























 

 



 Northwest Bancshares, Inc. and Subsidiaries

Loans by credit quality indicators (Unaudited)

(Dollars in thousands)



At September 30, 2018



Pass



Special mention

*



Substandard

**



Doubtful



Loss



Loans

receivable

Personal Banking:

























Residential mortgage loans



$

2,835,806









11,028













2,846,834



Home equity loans



1,265,237









7,108













1,272,345



Consumer loans



771,555









4,494













776,049



Total Personal Banking



4,872,598









22,630













4,895,228



Commercial Banking:

























Commercial real estate loans



2,283,152





53,529





181,385













2,518,066



Commercial loans



526,584





24,760





31,424













582,768



Total Commercial Banking



2,809,736





78,289





212,809













3,100,834



Total loans



$

7,682,334





78,289





235,439













7,996,062





























At June 30, 2018

























Personal Banking:

























Residential mortgage loans



$

2,790,906









9,762













2,800,668



Home equity loans



1,268,884









7,297













1,276,181



Consumer loans



697,561









3,364













700,925



Total Personal Banking



4,757,351









20,423













4,777,774



Commercial Banking:

























Commercial real estate loans



2,294,327





65,698





193,198













2,553,223



Commercial loans



554,495





18,140





38,738













611,373



Total Commercial Banking



2,848,822





83,838





231,936













3,164,596



Total loans



$

7,606,173





83,838





252,359













7,942,370





























At March 31, 2018

























Personal Banking:

























Residential mortgage loans



$

2,755,078









17,070













2,772,148



Home equity loans



1,279,137









9,224













1,288,361



Consumer loans



682,433









3,605













686,038



Total Personal Banking



4,716,648









29,899













4,746,547



Commercial Banking:

























Commercial real estate loans



2,256,054





57,690





198,513













2,512,257



Commercial loans



557,613





19,147





46,703













623,463



Total Commercial Banking



2,813,667





76,837





245,216













3,135,720



Total loans



$

7,530,315





76,837





275,115













7,882,267





























At December 31, 2017

























Personal Banking:

























Residential mortgage loans



$

2,758,465









17,738













2,776,203



Home equity loans



1,300,277









10,078













1,310,355



Consumer loans



666,629









4,760













671,389



Total Personal Banking



4,725,371









32,576













4,757,947



Commercial Banking:

























Commercial real estate loans



2,216,326





83,537





154,863













2,454,726



Commercial loans



511,035





19,297





50,404













580,736



Total Commercial Banking



2,727,361





102,834





205,267













3,035,462



Total loans



$

7,452,732





102,834





237,843













7,793,409





























At September 30, 2017

























Personal Banking:

























Residential mortgage loans



$

2,725,060









18,166













2,743,226



Home equity loans



1,302,036









11,399













1,313,435



Consumer loans



669,532









4,388













673,920



Total Personal Banking



4,696,628









33,953













4,730,581



Commercial Banking:

























Commercial real estate loans



2,196,510





56,118





146,258













2,398,886



Commercial loans



526,824





18,924





50,923













596,671



Total Commercial Banking



2,723,334





75,042





197,181













2,995,557



Total loans



$

7,419,962





75,042





231,134













7,726,138





* Includes $9.2 million, $9.5 million, $7.9 million, $8.6 million, and $8.9 million of acquired loans at September 30, 2018, June 30, 2018, March 31, 2018, December 30, 2017, and   September 30, 2017, respectively.

** Includes $45.3 million, $44.5 million, $45.2 million, $46.7 million, and $48.2 million of acquired loans at September 30, 2018, June 30, 2018, March 31, 2018, December 30, 2017, and September 30, 2017, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Loan delinquency (Unaudited)

(Dollars in thousands)







September 30,

2018



*



June 30,

2018



*



March 31,

2018



*



December 31,

2017



*



September 30,

2017



*

(Number of loans and dollar amount of loans)





























































Loans delinquent 30 days to 59 days:





























































Residential mortgage loans



27





$

1,500





0.1

%



30





$

1,561





0.1

%



319





$

27,403





1.0

%



317





$

25,784





0.9

%



44





$

2,771





0.1

%

Home equity loans



184





5,673





0.4

%



184





6,383





0.5

%



200





7,406





0.6

%



218





7,461





0.6

%



191





7,330





0.6

%

Consumer finance loans



280





632





10.7

%



306





711





8.1

%



477





1,288





10.3

%



849





2,128





11.4

%



1,045





3,065





11.4

%

Consumer loans



984





8,408





1.1

%



901





8,855





1.3

%



871





8,252





1.2

%



1,295





10,912





1.7

%



1,119





9,510





1.5

%

Commercial real estate loans



36





5,386





0.2

%



40





5,898





0.2

%



58





20,303





0.8

%



53





8,315





0.3

%



27





5,753





0.2

%

Commercial loans



17





622





0.1

%



24





1,000





0.2

%



35





2,912





0.5

%



26





1,865





0.3

%



16





746





0.1

%

Total loans delinquent 30 days to 59 days



1,528





$

22,221





0.3

%



1,485





$

24,408





0.3

%



1,960





$

67,564





0.9

%



2,758





$

56,465





0.7

%



2,442





$

29,175





0.4

%































































Loans delinquent 60 days to 89 days:





























































Residential mortgage loans



61





$

4,704





0.2

%



62





$

5,847





0.2

%



21





$

1,943





0.1

%



75





$

6,235





0.2

%



84





$

7,196





0.3

%

Home equity loans



69





2,536





0.2

%



73





2,495





0.2

%



52





2,040





0.2

%



72





2,871





0.2

%



73





2,390





0.2

%

Consumer finance loans



112





234





4.0

%



127





277





3.2

%



109





233





1.9

%



412





1,113





6.0

%



831





2,190





8.1

%

Consumer loans



352





3,251





0.4

%



350





2,654





0.4

%



296





2,259





0.3

%



463





3,351





0.5

%



473





3,283





0.5

%

Commercial real estate loans



30





6,678





0.3

%



28





3,689





0.1

%



23





1,809





0.1

%



25





2,539





0.1

%



22





7,666





0.3

%

Commercial loans



21





1,104





0.2

%



15





926





0.2

%



7





196





%



10





441





0.1

%



9





196





%

Total loans delinquent 60 days to 89 days



645





$

18,507





0.2

%



655





$

15,888





0.2

%



508





$

8,480





0.1

%



1,057





$

16,550





0.2

%



1,492





$

22,921





0.3

%































































Loans delinquent 90 days or more: **





























































Residential mortgage loans



143





$

13,483





0.5

%



140





$

12,293





0.4

%



127





$

10,791





0.4

%



158





$

13,890





0.5

%



143





$

12,190





0.4

%

Home equity loans



150





5,838





0.5

%



154





6,768





0.5

%



148





6,750





0.5

%



177





7,349





0.6

%



150





6,397





0.5

%

Consumer finance loans



16





39





0.7

%



8





15





0.2

%



7





3





%



74





199





1.1

%



124





332





1.2

%

Consumer loans



766





3,541





0.5

%



302





2,633





0.4

%



659





2,939





0.4

%



719





3,627





0.6

%



428





3,254





0.5

%

Commercial real estate loans



126





27,228





1.1

%



113





15,772





0.6

%



106





16,723





0.7

%



109





16,284





0.7

%



113





23,310





1.0

%

Commercial loans



29





2,714





0.5

%



31





2,925





0.5

%



35





3,144





0.5

%



37





3,140





0.5

%



45





4,177





0.7

%

Total loans delinquent 90 days or more



1,230





$

52,843





0.7

%



748





$

40,406





0.5

%



1,082





$

40,350





0.5

%



1,274





$

44,489





0.6

%



1,003





$

49,660





0.6

%































































Total loans delinquent



3,403





$

93,571





1.2

%



2,888





$

80,702





1.0

%



3,550





$

116,394





1.5

%



5,089





$

117,504





1.5

%



4,937





$

101,756





1.3

%



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

** Includes purchased credit impaired loans of $440,000, $672,000, $760,000, $1.4 million and $1.2 million at September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for loan losses (Unaudited)

(Dollars in thousands)





Quarter ended



September 30,

 2018



June 30,

 2018



March 31,

 2018



December 31,

 2017



September 30,

 2017

Beginning balance

57,332





55,211





56,795





56,927





62,885



Provision

6,982





5,349





4,209





6,525





3,027



Charge-offs residential mortgage

(214)





(389)





(201)





(162)





(215)



Charge-offs home equity

(426)





(406)





(611)





(393)





(528)



Charge-offs consumer finance

(445)





(486)





(1,553)





(2,900)





(3,891)



Charge-offs consumer

(3,470)





(2,682)





(3,249)





(3,322)





(3,002)



Charge-offs commercial real estate

(4,859)





(439)





(551)





(1,470)





(1,901)



Charge-offs commercial

(985)





(491)





(1,025)





(785)





(509)



Recoveries

2,060





1,665





1,397





2,375





1,061



Ending balance

$

55,975





57,332





55,211





56,795





56,927























Net charge-offs to average loans, annualized

0.42

%



0.16

%



0.30

%



0.34

%



0.47

%







































Nine months ended September 30,



2018



2017

Beginning balance

$                56,795





60,939



Provision

16,540





13,226



Charge-offs residential mortgage

(804)





(877)



Charge-offs home equity

(1,444)





(1,866)



Charge-offs consumer finance

(2,484)





(5,469)



Charge-offs consumer

(9,401)





(8,601)



Charge-offs commercial real estate

(5,849)





(2,704)



Charge-offs commercial

(2,501)





(2,705)



Recoveries

5,123





4,984



Ending balance

$

55,975





56,927





0.29

%



0.30

%

Net charge-offs to average loans, annualized



























September 30, 2018



Originated loans



Acquired loans



Total loans



Balance



Reserve



Balance



Reserve



Balance



Reserve

Residential mortgage loans

$

2,749,012





4,144





97,822





102





2,846,834





4,246



Home equity loans

1,048,373





3,234





223,972





408





1,272,345





3,642



Legacy consumer finance loans

5,888





1,650













5,888





1,650



Consumer loans

702,941





11,021





67,220





444





770,161





11,465



Personal Banking Loans

4,506,214





20,049





389,014





954





4,895,228





21,003



























Commercial real estate loans

2,277,429





25,694





240,637





2,876





2,518,066





28,570



Commercial loans

532,764





5,730





50,004





672





582,768





6,402



Commercial Banking Loans

2,810,193





31,424





290,641





3,548





3,100,834





34,972



























Total Loans

$

7,316,407





51,473





679,655





4,502





7,996,062





55,975



 

 



Northwest Bancshares, Inc. and Subsidiaries

Average balance sheet (Unaudited)

(Dollars in thousands)



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





Quarter ended



September 30, 2018



June 30, 2018



March 31, 2018



December 31, 2017



September 30, 2017



Average

balance



Interest



Avg.

yield/

cost (h)



Average

balance



Interest



Avg.

yield/

cost (h)



Average

balance



Interest



Avg.

yield/

cost (h)



Average

balance



Interest



Avg.

yield/

cost (h)



Average

balance



Interest



Avg.

yield/

cost (h)

Assets:



























































Interest-earning assets:



























































Residential mortgage loans

$

2,804,027





28,974





4.13

%



$

2,761,528





27,893





4.04

%



$

2,756,142





27,973





4.12

%



$

2,746,992





28,373





4.13

%



$

2,732,546





28,279





4.14

%

Home equity loans

1,272,847





15,248





4.75

%



1,281,001





15,384





4.82

%



1,298,780





14,786





4.62

%



1,312,146





15,187





4.59

%



1,299,473





14,694





4.49

%

Consumer loans

704,203





8,337





4.70

%



655,541





7,949





4.86

%



637,691





7,450





4.74

%



633,023





8,004





5.02

%



617,754





7,627





4.90

%

Consumer finance loans

7,176





343





19.12

%



10,428





516





19.79

%



15,254





768





20.14

%



22,469





1,151





20.32

%



33,469





1,433





17.13

%

Commercial real estate loans

2,540,270





29,974





4.62

%



2,518,170





29,034





4.56

%



2,471,422





27,384





4.43

%



2,442,528





28,251





4.53

%



2,389,969





27,234





4.46

%

Commercial loans

598,842





8,203





5.36

%



624,087





7,703





4.88

%



595,276





7,160





4.81

%



588,420





6,739





4.48

%



593,143





6,659





4.39

%

Total loans receivable (a) (b) (d)

7,927,365





91,079





4.56

%



7,850,755





88,479





4.52

%



7,774,565





85,521





4.46

%



7,745,578





87,705





4.49

%



7,666,354





85,926





4.45

%

Mortgage-backed securities (c)

598,596





3,572





2.39

%



569,893





3,255





2.28

%



558,055





3,013





2.16

%



581,055





3,016





2.08

%



607,454





3,118





2.05

%

Investment securities (c) (d)

244,346





1,074





1.76

%



235,784





1,044





1.77

%



256,287





1,172





1.83

%



301,268





1,495





1.98

%



352,813





1,690





1.92

%

FHLB stock

9,819





119





4.81

%



7,819





85





4.36

%



9,354





97





4.21

%



10,066





78





3.07

%



7,748





63





3.23

%

Other interest-earning deposits

26,057





162





2.43

%



103,739





469





1.79

%



34,200





135





1.58

%



13,515





59





1.71

%



71,482





243





1.33

%

Total interest-earning assets

8,806,183





96,006





4.33

%



8,767,990





93,332





4.27

%



8,632,461





89,938





4.23

%



8,651,482





92,353





4.24

%



8,705,851





91,040





4.15

%

Noninterest earning assets (e)

746,077













732,065













779,812













709,753













755,026











Total assets

$

9,552,260













$

9,500,055













$

9,412,273













$

9,361,235













$

9,460,877







































































Liabilities and shareholders' equity:



























































Interest-bearing liabilities:



























































Savings deposits

$

1,672,990





785





0.19

%



$

1,699,168





773





0.18

%



$

1,670,491





749





0.18

%



$

1,655,798





763





0.18

%



$

1,681,777





776





0.18

%

Interest-bearing demand deposits

1,460,556





1,064





0.29

%



1,468,228





875





0.24

%



1,419,459





603





0.17

%



1,419,352





331





0.09

%



1,435,143





297





0.08

%

Money market deposit accounts

1,685,368





1,565





0.37

%



1,691,652





1,211





0.29

%



1,706,800





1,053





0.25

%



1,734,444





1,017





0.23

%



1,789,082





1,048





0.23

%

Time deposits

1,403,967





4,819





1.36

%



1,440,457





4,450





1.24

%



1,415,247





4,053





1.16

%



1,421,569





3,860





1.08

%



1,449,830





3,674





1.01

%

Borrowed funds (f)

129,523





239





0.73

%



104,415





50





0.19

%



133,231





124





0.38

%



159,599





187





0.46

%



106,282





49





0.18

%

Junior subordinated debentures

111,213





1,316





4.63

%



111,213





1,290





4.59

%



111,213





1,184





4.26

%



111,213





1,163





4.09

%



111,213





1,150





4.05

%

Total interest-bearing liabilities

6,463,617





9,788





0.60

%



6,515,133





8,649





0.53

%



6,456,441





7,766





0.49

%



6,501,975





7,321





0.45

%



6,573,327





6,994





0.42

%

Noninterest-bearing demand deposits (g)

1,724,427













1,676,344













1,606,247













1,599,834













1,573,112











Noninterest bearing liabilities

132,062













92,252













143,608













57,956













116,021











Total liabilities

8,320,106













8,283,729













8,206,296













8,159,765













8,262,460











Shareholders' equity

1,232,154













1,216,326













1,205,977













1,201,470













1,198,417











Total liabilities and shareholders' equity

$

9,552,260













$

9,500,055













$

9,412,273













$

9,361,235













$

9,460,877











Net interest income/ Interest rate spread





86,218





3.73

%







84,683





3.74

%







82,172





3.74

%







85,032





3.79

%







84,046





3.73

%

Net interest-earning assets/ Net interest margin

$

2,342,566









3.92

%



$

2,252,857









3.86

%



$

2,176,020









3.86

%



$

2,149,507









3.93

%



$

2,132,524









3.86

%

Ratio of interest-earning assets to interest-bearing liabilities

1.36X













1.35X













1.34X













1.33X













1.32X













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

(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.

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

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

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

(f) Average balances include FHLB borrowings and collateralized borrowings.

(g) Average cost of deposits were 0.41%, 0.37%, 0.33%, 0.30% and 0.29%, respectively.

(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.54%, 4.50%, 4.45%, 4.46%, and 4.42%, respectively, Investment securities - 1.67%, 1.63%, 1.67%, 1.66%, and 1.62%, respectively, Interest-earning assets - 4.31%, 4.25%, 4.21%, 4.20%, and 4.11%, respectively. GAAP basis net interest rate spreads were 3.71%, 3.72%, 3.72%, 3.75%,  and 3.69%, respectively, and GAAP basis net interest margins were 3.90%, 3.84%, 3.84%, 3.89%, and 3.82%, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Average balance sheet (Unaudited)

(Dollars in thousands)



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





Nine months ended September 30,



2018



2017



Average

balance



Interest



Avg.

yield/

cost (h)



Average

balance



Interest



Avg.

yield/

cost (h)

Assets:























Interest-earning assets:























Residential mortgage loans

$

2,774,074





84,585





4.07

%



$

2,724,348





83,833





4.10

%

Home equity loans

1,284,114





45,617





4.75

%



1,314,344





43,239





4.40

%

Consumer loans

666,055





23,788





4.78

%



598,056





22,251





4.97

%

Consumer finance loans

10,923





1,627





19.86

%



40,241





6,025





19.96

%

Commercial real estate loans

2,510,206





86,188





4.53

%



2,425,302





80,867





4.40

%

Commercial loans

606,076





23,273





5.06

%



560,677





18,260





4.29

%

Loans receivable (a) (b) (d)

7,851,448





265,078





4.51

%



7,662,968





254,475





4.44

%

Mortgage-backed securities (c)

575,663





9,839





2.28

%



557,846





8,327





1.99

%

Investment securities (c) (d)

245,429





3,289





1.79

%



367,585





5,366





1.95

%

FHLB stock

8,999





301





4.47

%



7,553





172





3.04

%

Other interest-earning deposits

53,254





766





1.90

%



201,643





1,440





0.94

%

Total interest-earning assets

8,734,793





279,273





4.27

%



8,797,595





269,780





4.10

%

Noninterest earning assets (e)

753,403













742,837











Total assets

$

9,488,196













$

9,540,432



































Liabilities and shareholders' equity:























Interest-bearing liabilities:























Savings deposits

$

1,680,892





2,307





0.18

%



$

1,699,455





2,300





0.18

%

Interest-bearing demand deposits

1,449,573





2,541





0.23

%



1,436,442





696





0.06

%

Money market deposit accounts

1,694,519





3,830





0.30

%



1,835,638





3,186





0.23

%

Time deposits

1,419,849





13,322





1.25

%



1,513,565





10,904





0.96

%

Borrowed funds (f)

122,376





412





0.45

%



123,168





161





0.17

%

Junior subordinated debentures

111,213





3,791





4.50

%



111,213





3,503





4.15

%

Total interest-bearing liabilities

6,478,422





26,203





0.54

%



6,719,481





20,750





0.41

%

Noninterest-bearing demand deposits (g)

1,669,423













1,541,845











Noninterest bearing liabilities

122,199













94,546











Total liabilities

8,270,044













8,355,872











Shareholders' equity

1,218,152













1,184,560











Total liabilities and shareholders' equity

$

9,488,196













$

9,540,432











Net interest income/ Interest rate spread





253,070





3.73

%







249,030





3.69

%

Net interest-earning assets/ Net interest margin

$

2,256,371









3.86

%



$

2,078,114









3.77

%

Ratio of interest-earning assets to interest-bearing liabilities

1.35X













1.31X













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

(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.

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

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

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

(f) Average balances include FHLB borrowings and collateralized borrowings.

(g) Average cost of deposits were 0.37% and 0.28%, respectively.

(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.50% and 4.41%, respectively, Investment securities - 1.66% and 1.64%, respectively, Interest-earning assets - 4.26% and 4.06%, respectively. GAAP basis net interest rate spreads were 3.71% and 3.65%, respectively, and GAAP basis net interest margins were 3.84% and 3.74%, respectively.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-third-quarter-2018-earnings-and-quarterly-dividend-300734374.html

SOURCE Northwest Bancshares, Inc.

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