Northwest Bancshares, Inc. Announces Second Quarter 2020 Earnings and Quarterly Dividend

WARREN, Pa., July 27, 2020 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), NWBI announced a net loss for the quarter ended June 30, 2020 of $6.2 million, or $(0.05) per diluted share.  This represents a decrease of $32.6 million, or 123.5%, compared to the same quarter last year when net income was $26.4 million or $0.25 per diluted share.  The annualized returns on average shareholders' equity and average assets for the quarter ended June 30, 2020 were (1.63)% and (0.18)% compared to 8.01% and 1.02% for the same quarter last year. As noted in our non-GAAP reconciliation, when adjusting for COVID-related provision expense and acquisition-related costs, non-GAAP net income was approximately $30.2 million, or $0.25, per diluted share, which would represent an increase over the same quarter in the prior year of $3.0 million, or 11.0%, and result in a return on average shareholders' equity of 7.95% and a return on average assets of 0.89%.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.19 per share payable on August 14, 2020 to shareholders of record as of August 6, 2020.  This is the 103rd 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, 2020, this represents an annualized dividend yield of approximately 7.43%.

In making this announcement, Ronald J. Seiffert, Chairman, President and CEO, noted, "Obviously we are disappointed to report a loss for the quarter. However, as we assess the reasons for this loss, there is certainly cause for optimism as we enter the second half of the year. The primary drivers behind the quarterly loss are threefold. First, COVID-related loan loss provisions driven by a deteriorated economic forecast, which we estimate accounted for approximately $21.3 million of our elevated provision expense.  Second, our loan loss provision expense during the quarter was also negatively impacted by the recording of provision expense for our MutualBank acquisition of approximately $18.2 million as promulgated by ASU 2016-13, also known as CECL. CECL requires an additional estimated loan loss provision or the "double count" for certain loans when integrating an acquisition. Third, acquisition costs of $9.7 million associated with the close and integration of MutualBank during the quarter negatively affected results as well. It should be noted, however, that year-to-date acquisition costs of $12.1 million were lower than originally projected."

Mr. Seiffert continued, "Assuming the current economic environment continues to remain stable, we believe that we have adequately provided for potential future losses during the first half of the year and have been able to do so with current earnings. In addition, as depicted in the attached non-GAAP pro forma financials, core quarterly earnings of approximately $30.2 million are strong and position us well for the remainder of the year. We are also fortunate to possess a robust capital position which has enabled us to maintain our regular quarterly cash dividend to common stock shareholders."

Mr. Seiffert concluded, "While most of our back-office and regional headquarter personnel continue to work effectively from home out of an abundance of caution, all of our branch offices have been  re-opened for business as usual and we are very pleased, once again to offer our award-winning service to our loyal customers. I am so very honored and proud to be associated with our dedicated employees, our talented management team and our engaged Board of Directors who have all risen to the occasion during these extremely challenging times. They continue to stand tall in the face of adversity to service our customers and communities."

Net interest income increased by $5.5 million, or 5.9%, to $98.1 million for the quarter ended June 30, 2020, from $92.6 million for the quarter ended June 30, 2019, primarily due to a $3.1 million, or 25.2%, decrease in interest expense on deposits as well as a $587,000, or 34.1%, decrease in interest expense on borrowed funds.  This decrease in interest expense was due to a decline in market interest rates when compared to the prior year, resulting in a decrease in the cost of our interest-bearing liabilities to 0.48% for the quarter ended June 30, 2020 from 0.82% for the quarter ended June 30, 2019.  Also contributing to the increase in net interest income was a $2.1 million, or 2.1%, increase in interest income on loans receivable primarily due to an increase of $1.606 billion, or 18.7%, in the average balance of loans as a result of the acquisition of MutualBank on April 24, 2020. Despite the overall increase in net interest income due primarily to balance sheet growth, the net interest margin decreased to 3.38% for the quarter ended June 30, 2020 from 3.91% for the same quarter last year as interest earning asset yields decreased to 3.75% for the quarter ended June 30, 2020 from 4.53% for the quarter ended June 30, 2019. Contributing to the decline in asset yields, was the increase in average cash balances of $602.9 million, earning just 0.12%, due to deposit growth associated with Payroll Protection Program ("PPP") loan funds and consumer stimulus checks. In addition, PPP loan balances of approximately $450.0 million with coupon rates of 1.00%, has negatively impacted overall interest earning asset yields.

The provision for loan losses increased by $47.1 million to $51.8 million for the quarter ended June 30, 2020, from $4.7 million for the quarter ended June 30, 2019.  During the current year, the Company adopted CECL, which requires that all financial assets measured at amortized cost be presented at the net amount expected to be collected inclusive of the entity's current estimate of all lifetime expected credit losses. In addition, the estimated economic impact of COVID-19 caused us to increase our provision expense for the quarter by approximately $21.3 million and provision expense for the integration of MutualBank loans amounted to approximately $18.2 million.  

Noninterest income increased by $12.1 million, or 51.9%, to $35.5 million for the quarter ended June 30, 2020, from $23.4 million for the quarter ended June 30, 2019.  This increase was primarily due to the increase in mortgage banking income of $11.8 million to $12.0 million for the quarter ended June 30, 2020 from $188,000 for the quarter ended June 30, 2019. This increase was due to continued efforts to expand our secondary market sales capabilities over the last year, as well as an interest rate environment conducive to refinance activity and attractive secondary market pricing. In addition, there was a $379,000 increase, or 8.5%, in trust and other financial services income primarily due to additional trust fee income in our Indiana region as a result of the acquisition of MutualBank.

Noninterest expense increased by $11.7 million, or 15.0%, to $89.2 million for the quarter ended June 30, 2020, from $77.5 million for the quarter ended June 30, 2019.  This increase resulted primarily from an increase in acquisition expense of $8.6 million over the prior year, due to expenses incurred as a result of the acquisition of MutualBank on April 24, 2020.  Also contributing to the increase was a $4.6 million increase in other expenses primarily due to the reserve for unfunded commitments during the second quarter of 2020 as a result of an increase in unfunded commitments and the estimated economic impact of COVID-19.  Partially offsetting this increase was a decrease of $2.0 million, or 4.7%, in compensation and employee benefits primarily due to an increase in deferred loan costs directly related to the origination of PPP loans during the current quarter. 

The provision for income taxes decreased by $8.5 million, or 115.4%, to $(1.1) million for the quarter ended June 30, 2020, from $7.4 million for the quarter ended June 30, 2019.  This decrease was due primarily to the decrease in net income before taxes by $41.1 million, or 121.7%.

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. As of June 30, 2020, Northwest operated 205 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,

2020



December 31,

2019



June 30,

2019

Assets











Cash and cash equivalents

$

837,227





60,846





106,988



Marketable securities available-for-sale (amortized cost of $1,176,258, $815,495 and $850,248,

respectively)

1,198,792





819,901





854,765



Marketable securities held-to-maturity (fair value of $17,245, $18,223 and $20,676, respectively)

16,415





18,036





20,414



Total cash and cash equivalents and marketable securities

2,052,434





898,783





982,167















Residential mortgage loans held-for-sale

34,118





7,709







Residential mortgage loans

3,188,637





2,860,418





2,899,164



Home equity loans

1,450,370





1,342,918





1,314,947



Consumer loans

1,518,119





1,125,132





1,011,424



Commercial real estate loans

3,308,824





2,754,390





2,808,153



Commercial loans

1,358,719





718,107





703,194



Total loans receivable

10,858,787





8,808,674





8,736,882



Allowance for credit losses

(140,586)





(57,941)





(53,107)



Loans receivable, net

10,718,201





8,750,733





8,683,775















Federal Home Loan Bank stock, at cost

25,542





14,740





14,966



Accrued interest receivable

40,510





25,755





28,742



Real estate owned, net

1,897





950





2,070



Premises and equipment, net

166,966





147,409





148,973



Bank-owned life insurance

251,897





189,091





186,870



Goodwill

386,044





346,103





344,720



Other intangible assets, net

23,381





23,076





24,112



Other assets

178,212





97,268





89,088



Total assets

$

13,845,084





10,493,908





10,505,483



Liabilities and shareholders' equity











Liabilities











Noninterest-bearing demand deposits

$

2,686,487





1,609,653





1,944,550



Interest-bearing demand deposits

2,632,310





1,944,108





1,670,983



Money market deposit accounts

2,327,286





1,863,998





1,784,437



Savings deposits

1,993,761





1,604,838





1,683,551



Time deposits

1,823,097





1,569,410





1,600,372



Total deposits

11,462,941





8,592,007





8,683,893















Borrowed funds

440,079





246,336





171,677



Junior subordinated debentures

128,630





121,800





121,757



Advances by borrowers for taxes and insurance

58,559





44,556





54,507



Accrued interest payable

1,389





1,142





1,207



Other liabilities

222,637





134,782





138,854



Total liabilities

12,314,235





9,140,623





9,171,895



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, 127,838,400, 106,859,088, and

106,614,607 shares issued and outstanding, respectively

1,278





1,069





1,066



Paid-in capital

1,023,083





805,750





798,942



Retained earnings

530,928





583,407





562,799



Accumulated other comprehensive loss

(24,440)





(36,941)





(29,219)



Total shareholders' equity

1,530,849





1,353,285





1,333,588



Total liabilities and shareholders' equity

$

13,845,084





10,493,908





10,505,483















Equity to assets

11.06

%



12.90

%



12.69

%

Tangible common equity to assets

8.35

%



9.72

%



9.52

%

Book value per share

$

11.97





12.66





12.51



Tangible book value per share

$

8.77





9.21





9.05



Closing market price per share

$

10.23





16.63





17.61



Full time equivalent employees

2,518





2,209





2,238



Number of banking offices

213





181





182





 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)





Quarter ended



June 30,

2020



March 31,

2020



December 31,

2019



September 30,

2019



June 30,

2019











Interest income:



















Loans receivable

$

103,012





94,973





97,866





101,091





100,917



Mortgage-backed securities

4,038





4,175





4,237





4,188





4,280



Taxable investment securities

439





648





683





884





898



Tax-free investment securities

564





185





201





224





237



FHLB dividends

309





262





262





307





316



Interest-earning deposits

185





135





169





172





159



Total interest income

108,547





100,378





103,418





106,866





106,807



Interest expense:



















Deposits

9,336





11,403





12,893





13,694





12,484



Borrowed funds

1,133





1,747





1,580





2,236





1,720



Total interest expense

10,469





13,150





14,473





15,930





14,204



Net interest income

98,078





87,228





88,945





90,936





92,603



   Provision for credit losses

51,750





27,637





8,223





3,302





4,667



Net interest income after provision for credit losses

46,328





59,591





80,722





87,634





87,936



Noninterest income:



















Gain/(loss) on sale of investments

(8)





181





27









29



Gain on sale of loans





1,302





908





826







Service charges and fees

13,069





15,116





14,125





13,558





13,339



Trust and other financial services income

4,823





5,001





4,517





4,609





4,444



Insurance commission income

2,395





2,372





1,858





1,887





2,145



Gain/(loss) on real estate owned, net

(97)





(91)





86





(227)





91



Income from bank-owned life insurance

1,248





1,036





1,121





1,095





1,197



Mortgage banking income

12,022





1,194





1,494





1,921





188



Other operating income

2,044





1,865





4,077





2,500





1,930



Total noninterest income

35,496





27,976





28,213





26,169





23,363



Noninterest expense:



















Compensation and employee benefits

40,049





42,746





42,074





40,816





42,008



Premises and occupancy costs

7,195





7,471





7,051





7,061





7,387



Office operations

3,711





3,382





4,097





3,197





3,708



Collections expense

644





474





566





747





939



Processing expenses

11,680





11,142





10,263





11,122





10,634



Marketing expenses

2,047





1,507





1,010





1,373





2,729



Federal deposit insurance premiums

1,618













(702)





681



Professional services

2,825





2,812





3,533





3,032





3,198



Amortization of intangible assets

1,760





1,651





1,634





1,702





1,760



Real estate owned expense

89





95





72





119





128



Restructuring/acquisition expense

9,679





2,458





1,114





23





1,105



Other expenses

7,866





4,873





5,157





2,106





3,235



Total noninterest expense

89,163





78,611





76,571





70,596





77,512



Income/(loss) before income taxes

(7,339)





8,956





32,364





43,207





33,787



Income tax expense/(benefit)

(1,139)





1,017





6,773





9,793





7,404



Net income/(loss)

(6,200)





7,939





25,591





33,414





26,383























Basic earnings per share

$

(0.05)





0.08





0.24





0.32





0.25



Diluted earnings per share

$

(0.05)





0.07





0.24





0.31





0.25























Weighted average common shares outstanding - basic

121,480,563





105,882,553





105,627,194





105,517,707





105,233,635



Weighted average common shares outstanding - diluted

121,480,563





106,148,247





106,306,615





106,270,544





106,258,215























Annualized return on average equity

(1.63)

%



2.37

%



7.52

%



9.90

%



8.01

%

Annualized return on average assets

(0.18)

%



0.30

%



0.97

%



1.25

%



1.02

%

Annualized return on tangible common equity **

(2.22)

%



3.28

%



10.32

%



13.46

%



10.97

%





















Efficiency ratio *

58.19

%



64.67

%



63.01

%



58.81

%



64.37

%

Annualized noninterest expense to average assets *

2.30

%



2.83

%



2.80

%



2.59

%



2.88

%



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

**   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)





Six months ended June 30,



2020



2019

Interest income:







Loans receivable

$

197,985





195,852



Mortgage-backed securities

8,213





8,245



Taxable investment securities

1,087





1,834



Tax-free investment securities

749





419



FHLB dividends

571





487



Interest-earning deposits

320





259



Total interest income

208,925





207,096



Interest expense:







Deposits

20,739





22,629



Borrowed funds

2,880





3,882



Total interest expense

23,619





26,511



Net interest income

185,306





180,585



Provision for credit losses

79,387





11,134



Net interest income after provision for credit losses

105,919





169,451



Noninterest income:







Gain on sale of investments

173





23



Gain on sale of loans

1,302







Service charges and fees

28,185





25,382



Trust and other financial services income

9,824





8,639



Insurance commission income

4,767





4,323



Gain/(loss) on real estate owned, net

(188)





88



Income from bank-owned life insurance

2,284





2,202



Mortgage banking income

13,216





404



Other operating income

3,909





3,964



Total noninterest income

63,472





45,025



Noninterest expense:







Compensation and employee benefits

82,795





80,196



Premises and occupancy costs

14,666





14,605



Office operations

7,093





6,839



Collections expense

1,118





1,247



Processing expenses

22,822





21,068



Marketing expenses

3,554





4,615



Federal deposit insurance premiums

1,618





1,387



Professional services

5,637





5,722



Amortization of intangible assets

3,411





3,207



Real estate owned expense

184





287



Restructuring/acquisition expense

12,137





3,031



Other expenses

12,739





6,732



Total noninterest expense

167,774





148,936



Income before income taxes

1,617





65,540



Income tax expense/(benefit)

(122)





14,113



Net income

$

1,739





51,427











Basic earnings per share

$

0.02





0.49



Diluted earnings per share

$

0.02





0.49











Weighted average common shares outstanding - basic

113,672,131





104,173,601



Weighted average common shares outstanding - diluted

113,774,339





105,382,270











Annualized return on average equity

0.24

%



7.99

%

Annualized return on average assets

0.03

%



1.02

%

Annualized return on tangible common equity **

0.31

%



10.75

%









Efficiency ratio *

61.19

%



63.25

%

Annualized noninterest expense to average assets *

2.53

%



2.84

%



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

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

 

Northwest Bancshares, Inc. and Subsidiaries

Reconciliation of Non-GAAP to GAAP Net Income (Unaudited) *

(dollars in thousands, except per share amounts)





Quarter ended June 30,



Six months ended June 30,



2020



2019



2020



2019

Operating results (non-GAAP):















Net interest income

$

98,078





92,603





185,306





180,585



Provision for credit losses

12,279





4,667





16,203





11,134



Noninterest income

35,496





23,363





63,472





45,025



Noninterest expense

83,368





76,407





157,637





145,905



Income taxes

7,708





7,657





14,216





14,807



Net operating income (non-GAAP)

$

30,219





27,235





60,722





53,764



Diluted earnings per share (non-GAAP)

$

0.25





0.26





0.53





0.51



















Average equity

$

1,528,868





1,320,382





1,439,489





1,298,334



Average assets

13,590,131





10,412,664





12,093,801





10,150,040



Annualized return on average equity (non-GAAP)

7.95

%



8.27

%



8.48

%



8.35

%

Annualized return on average assets (non-GAAP)

0.89

%



1.05

%



1.01

%



1.07

%

















Reconciliation of net operating income to net income:















Net operating income (non-GAAP)

$

30,219





27,235





60,722





53,764



Non-GAAP adjustments, net of tax:















COVID-related provision **

(17,121)









(36,189)







CECL provision impact due to acquisition of MutualBank

(14,618)









(14,618)







PPP deferred origination costs

3,389









3,389







COVID-related off balance sheet provision **

(266)









(1,780)







Restructuring/acquisition expense

(7,803)





(852)





(9,785)





(2,337)



Net income/(loss) (GAAP)

$

(6,200)





26,383





1,739





51,427



Diluted earnings per share (GAAP)

$

(0.05)





0.25





0.02





0.49



















Annualized return on average equity (GAAP)

(1.63)

%



8.01

%



0.24

%



7.99

%

Annualized return on average assets (GAAP)

(0.18)

%



1.02

%



0.03

%



1.02

%



*  

The table summarizes the Company's results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude estimated COVID-related provision, CECL provision related to the acquisition of MutualBank, PPP deferred origination costs, estimated COVID-related off balance sheet provision and restructuring/acquisition expense.  The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.

**

To arrive at the non-COVID related provision estimates, the Company applied Moody's forecast scenarios prior to the onset of COVID-19 to our loan portfolio at June 30, 2020. 



 

Northwest Bancshares, Inc. and Subsidiaries

Regulatory capital requirements (Unaudited)

(dollars in thousands)





At June 30, 2020



Actual



Minimum capital

requirements (1)



Well capitalized

requirements 



Amount



Ratio



Amount



Ratio



Amount



Ratio

Total capital (to risk weighted assets)























Northwest Bancshares, Inc.

$

1,521,506





14.454

%



$

1,105,299





10.500

%



$

1,052,666





10.000

%

Northwest Bank

1,409,018





13.397

%



1,104,346





10.500

%



1,051,759





10.000

%

























Tier 1 capital (to risk weighted assets)























Northwest Bancshares, Inc.

1,383,261





13.141

%



894,766





8.500

%



842,133





8.000

%

Northwest Bank

1,270,773





12.082

%



893,995





8.500

%



841,407





8.000

%

























Common equity tier 1 capital (to risk weighted assets)























Northwest Bancshares, Inc.

1,258,620





11.957

%



736,866





7.000

%



684,233





6.500

%

Northwest Bank

1,270,773





12.082

%



736,231





7.000

%



683,643





6.500

%

























Tier 1 capital (leverage)  (to average assets)























Northwest Bancshares, Inc.

1,383,261





10.488

%



527,571





4.000

%



659,464





5.000

%

Northwest Bank

1,270,773





9.680

%



525,093





4.000

%



656,366





5.000

%



(1)

Amounts and ratios include the capital conservation buffer of 2.5%, which does not apply to Tier 1 capital to average assets (leverage ratio). For further information related to the capital conservation buffer, see "Item 1. Business - Supervision and Regulation" of our 2019 Annual Report on Form 10-K.

 

Northwest Bancshares, Inc. and Subsidiaries

Marketable securities (Unaudited)

(dollars in thousands)







June 30, 2020

Marketable securities available-for-sale



Amortized cost



Gross unrealized

holding gains



Gross unrealized

holding losses



Fair value

   Debt issued by the U.S. government and agencies:

















Due after ten years



$

10,000





112









10,112





















   Debt issued by government sponsored enterprises:

















   Due in less than one year



35,751





228









35,979



   Due in one year through five years



25,225





292









25,517



   Due in five years through ten years



13,302





134





(93)





13,343





















   Municipal securities:

















   Due in less than one year



3,634





5









3,639



   Due in one year through five years



4,005





95





(3)





4,097



   Due in five years through ten years



8,489





228









8,717



   Due after ten years



96,640





2,785





(7)





99,418





















   Residential mortgage-backed securities:

















   Fixed rate pass-through



324,026





5,782





(230)





329,578



   Variable rate pass-through



17,190





585





(14)





17,761



   Fixed rate agency CMOs



586,290





13,320





(788)





598,822



   Variable rate agency CMOs



51,706





165





(62)





51,809



   Total residential mortgage-backed securities



979,212





19,852





(1,094)





997,970



   Total marketable securities available-for-sale



$

1,176,258





23,731





(1,197)





1,198,792





















Marketable securities held-to-maturity

















   Residential mortgage-backed securities:

















   Fixed rate pass-through



$

1,969





126









2,095



   Variable rate pass-through



1,058





38









1,096



   Fixed rate agency CMOs



12,784





658









13,442



   Variable rate agency CMOs



604





8









612



   Total residential mortgage-backed securities



16,415





830









17,245



   Total marketable securities held-to-maturity



$

16,415





830









17,245



 

Northwest Bancshares, Inc. and Subsidiaries

Borrowed funds (Unaudited)

(dollars in thousands)





June 30, 2020



Amount



Average rate

Term notes payable to the Federal Home Loan Bank (FHLB):







   Payable to FHLB of Pittsburgh

$

100,000





0.48

%

   Payable to the FHLB of Indianapolis acquired from MutualBank

200,481





1.65

%

      Total term notes payable to the FHLB

300,481







Collateralized borrowings, due within one year

139,598





0.29

%

      Total borrowed funds *

$

440,079









*

As of June 30, 2020, the Company had $3.1 billion of additional borrowing capacity available with the Federal Home Loan Bank of Pittsburgh, including a $250.0 million overnight line of credit, which had no balance, as well as $110.1 million of borrowing capacity available with the Federal Reserve Bank and $110.0 million with three correspondent banks.

 

Northwest Bancshares, Inc. and Subsidiaries

Asset quality (Unaudited)

(dollars in thousands)





June 30,

2020



March 31,

2020



December 31,

2019



September 30,

2019



June 30,

2019

Nonaccrual loans current:



















Residential mortgage loans

$

413





285





72





676





432



Home equity loans

481





592





197





607





475



Consumer loans

214





77





78





68





94



Commercial real estate loans

30,677





14,337





9,241





7,674





12,605



Commercial loans

6,551





3,514





3,424





3,777





5,666



Total nonaccrual loans current

$

38,336





18,805





13,012





12,802





19,272



Nonaccrual loans delinquent 30 days to 59 days:



















Residential mortgage loans

$

61





691





674





40





13



Home equity loans

247





159





224





102





418



Consumer loans

335





143





121





246





172



Commercial real estate loans

2,372





496





196





925





469



Commercial loans









55





44





45



Total nonaccrual loans delinquent 30 days to 59 days

$

3,015





1,489





1,270





1,357





1,117



Nonaccrual loans delinquent 60 days to 89 days:



















Residential mortgage loans

$

1,013





218





1,048





979





910



Home equity loans

960





539





689





436





717



Consumer loans

666





488





417





426





322



Commercial real estate loans

163





2,096





413





536





1,426



Commercial loans

768





37





341









780



Total nonaccrual loans delinquent 60 days to 89 days

$

3,570





3,378





2,908





2,377





4,155



Nonaccrual loans delinquent 90 days or more:



















Residential mortgage loans

$

15,369





10,457





12,682





11,722





10,617



Home equity loans

7,060





5,816





5,635





5,966





5,591



Consumer loans

6,896





3,459





3,610





3,400





2,902



Commercial real estate loans

29,729





25,342





25,014





22,292





21,123



Commercial loans

11,535





16,685





4,739





5,741





2,920



Total nonaccrual loans delinquent 90 days or more

$

70,589





61,759





51,680





49,121





43,153



Total nonaccrual loans

$

115,510





85,431





68,870





65,657





67,697



Total nonaccrual loans

$

115,510





85,431





68,870





65,657





67,697



Loans 90 days past maturity and still accruing

77





31





32





85





55



Nonperforming loans

115,587





85,462





68,902





65,742





67,752



Real estate owned, net

1,897





1,075





950





1,237





2,070



Nonperforming assets

$

117,484





86,537





69,852





66,979





69,822



Nonaccrual troubled debt restructuring *

$

17,562





17,375





9,043





9,138





13,375



Accruing troubled debt restructuring

17,888





15,977





22,956





21,162





17,894



Total troubled debt restructuring

$

35,450





33,352





31,999





30,300





31,269























Nonperforming loans to total loans

1.06

%



0.97

%



0.78

%



0.74

%



0.78

%

Nonperforming assets to total assets

0.85

%



0.81

%



0.67

%



0.63

%



0.66

%

Allowance for credit losses to total loans

1.29

%



1.05

%



0.66

%



0.60

%



0.61

%

Allowance for total loans excluding PPP loan balances

1.36

%



N/A



N/A



N/A



N/A

Allowance for credit losses to nonperforming loans

121.63

%



108.70

%



84.09

%



80.40

%



78.38

%



*    Amounts included in nonperforming loans above.

 

Northwest Bancshares, Inc. and Subsidiaries

Loans by credit quality indicators (Unaudited)

(dollars in thousands)



At June 30, 2020



Pass



Special

   mention *



Substandard

**



Doubtful

***



Loss



Loans

receivable

Personal Banking:

























  Residential mortgage loans



$

3,196,304









26,451













3,222,755



  Home equity loans



1,438,339









12,031













1,450,370



  Consumer loans



1,508,129









9,990













1,518,119



Total Personal Banking



6,142,772









48,472













6,191,244



Commercial Banking:

























  Commercial real estate loans



3,034,984





72,755





199,993





1,092









3,308,824



  Commercial loans



1,270,279





41,458





42,692





4,290









1,358,719



Total Commercial Banking



4,305,263





114,213





242,685





5,382









4,667,543



Total loans



$

10,448,035





114,213





291,157





5,382









10,858,787



At March 31, 2020

























Personal Banking:

























  Residential mortgage loans



$

2,830,596









7,690













2,838,286



  Home equity loans



1,345,052









8,211













1,353,263



  Consumer loans



1,174,067









3,988













1,178,055



Total Personal Banking



5,349,715









19,889













5,369,604



Commercial Banking:

























  Commercial real estate loans



2,537,736





73,967





143,765













2,755,468



  Commercial loans



618,267





43,071





50,464













711,802



Total Commercial Banking



3,156,003





117,038





194,229













3,467,270



Total loans



$

8,505,718





117,038





214,118













8,836,874



At December 31, 2019

























Personal Banking:

























  Residential mortgage loans



$

2,858,582









9,545













2,868,127



  Home equity loans



1,336,111









6,807













1,342,918



  Consumer loans



1,120,732









4,400













1,125,132



Total Personal Banking



5,315,425









20,752













5,336,177



Commercial Banking:

























  Commercial real estate loans



2,538,816





80,570





135,004













2,754,390



  Commercial loans



616,983





42,380





58,744













718,107



Total Commercial Banking



3,155,799





122,950





193,748













3,472,497



Total loans



$

8,471,224





122,950





214,500













8,808,674



At September 30, 2019

























Personal Banking:

























  Residential mortgage loans



$

2,887,077









9,056













2,896,133



  Home equity loans



1,320,930









7,243













1,328,173



  Consumer loans



1,090,030









4,263













1,094,293



Total Personal Banking



5,298,037









20,562













5,318,599



Commercial Banking:

























  Commercial real estate loans



2,601,025





69,380





142,253





181









2,812,839



  Commercial loans



639,998





37,666





42,800





115









720,579



Total Commercial Banking



3,241,023





107,046





185,053





296









3,533,418



Total loans



$

8,539,060





107,046





205,615





296









8,852,017



At June 30, 2019

























Personal Banking:

























  Residential mortgage loans



$

2,890,472









8,692













2,899,164



  Home equity loans



1,307,887









7,060













1,314,947



  Consumer loans



1,007,813









3,611













1,011,424



Total Personal Banking



5,206,172









19,363













5,225,535



Commercial Banking:

























  Commercial real estate loans



2,586,013





86,434





135,525





181









2,808,153



  Commercial loans



621,889





38,182





42,141





982









703,194



Total Commercial Banking



3,207,902





124,616





177,666





1,163









3,511,347



Total loans



$

8,414,074





124,616





197,029





1,163









8,736,882





*

Includes $37.4 million, $13.1 million, $10.3 million, $8.7 million, and $8.1 million of acquired loans at June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, respectively.

**

Includes $108.2 million, $56.8 million, $53.1 million, $46.6 million, and $38.6 million of acquired loans at June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, respectively.

***

Includes $1.1 million of acquired loans at June 30, 2020.

 

Northwest Bancshares, Inc. and Subsidiaries

Loan delinquency (Unaudited)

(dollars in thousands)





June 30,

2020



*



March 31,

2020



*



December 31,

2019



*



September 30, 

2019



*



June 30,

2019



*

(Number of loans and dollar amount of loans)



























































Loans delinquent 30 days to 59 days:



























































Residential mortgage loans

15





$

629





%



358





$

32,755





1.2

%



292





$

23,296





0.8

%



21





$

1,236





%



30





$

1,629





0.1

%

Home equity loans

118





4,569





0.3

%



190





7,061





0.5

%



173





6,469





0.5

%



149





4,774





0.4

%



148





4,573





0.3

%

Consumer loans

629





7,199





0.5

%



953





8,774





0.7

%



960





9,208





0.8

%



864





7,597





0.7

%



856





7,630





0.7

%

Commercial real estate loans

46





14,177





0.4

%



58





12,895





0.5

%



43





7,921





0.3

%



27





5,308





0.2

%



31





2,418





0.1

%

Commercial loans

12





1,242





0.1

%



35





7,545





1.1

%



32





1,187





0.2

%



20





362





0.1

%



14





666





0.1

%

Total loans delinquent 30 days to 59 days

820





$

27,816





0.3

%



1,594





$

69,030





0.8

%



1,500





$

48,081





0.5

%



1,081





$

19,277





0.2

%



1,079





$

16,916





0.2

%





























































Loans delinquent 60 days to 89 days:



























































Residential mortgage loans

64





$

5,364





0.2

%



11





$

511





%



67





$

5,693





0.2

%



95





$

5,320





0.2

%



78





$

6,264





0.2

%

Home equity loans

59





2,326





0.2

%



65





2,652





0.2

%



66





2,405





0.2

%



66





2,103





0.2

%



59





2,319





0.2

%

Consumer loans

258





2,916





0.2

%



265





2,610





0.2

%



395





3,302





0.3

%



288





2,632





0.2

%



338





2,897





0.3

%

Commercial real estate loans

18





3,913





0.1

%



12





2,981





0.1

%



19





1,690





0.1

%



15





1,893





0.1

%



16





2,617





0.1

%

Commercial loans

15





1,151





0.1

%



10





309





%



17





6,403





0.9

%



10





589





0.1

%



16





1,725





0.2

%

Total loans delinquent 60 days to 89 days

414





$

15,670





0.1

%



363





$

9,063





0.1

%



564





$

19,493





0.2

%



474





$

12,537





0.1

%



507





$

15,822





0.2

%





























































Loans delinquent 90 days or more: **



























































Residential mortgage loans

185





$

15,369





0.5

%



129





$

10,457





0.4

%



141





$

12,775





0.4

%



138





$

11,816





0.4

%



129





$

10,800





0.4

%

Home equity loans

182





7,060





0.5

%



152





5,816





0.4

%



159





5,688





0.4

%



157





5,966





0.4

%



136





5,591





0.4

%

Consumer loans

709





6,896





0.5

%



445





3,459





0.3

%



590





3,611





0.3

%



398





3,401





0.3

%



710





2,908





0.3

%

Commercial real estate loans

149





29,729





0.9

%



139





25,342





0.9

%



129





25,014





0.9

%



118





22,292





0.8

%



118





21,123





0.7

%

Commercial loans

47





11,535





0.8

%



51





16,685





2.3

%



37





4,739





0.7

%



40





5,741





0.8

%



25





2,920





0.4

%

Total loans delinquent 90 days or more

1,272





$

70,589





0.7

%



916





$

61,759





0.7

%



1,056





$

51,827





0.6

%



851





$

49,216





0.6

%



1,118





$

43,342





0.5

%





























































Total loans delinquent

2,506





$

114,075





1.1

%



2,873





$

139,852





1.6

%



3,120





$

119,401





1.4

%



2,406





$

81,030





0.9

%



2,704





$

76,080





0.9

%



*

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

**

Includes purchased credit deteriorated loans of $18.0 million at June 30, 2020 and $298,000 at March 31, 2020, and purchased credit impaired loans of $147,000, $95,000, and $190,000 at December 31, 2019, September 30, 2019, and June 30, 2019, respectively.

 

Northwest Bancshares, Inc. and Subsidiaries

Analysis of loan portfolio by loan sector (Unaudited)

(dollars in thousands)



Loans outstanding

The following table provides delinquency information for various loan sectors in our portfolio that are potentially vulnerable to the COVID-19 pandemic impacts at June 30, 2020:



At June 30, 2020

30-59 days

delinquent



*



60-89 days

delinquent



*



90 days

or greater

delinquent



*



Total

delinquent



*



Current



*



Total

loans

 receivable



*

Restaurants/bars

$

1,052





%



$





%



$

171





%



$

1,223





%



$

96,211





0.9

%



$

97,434





0.9

%

Hotels/hospitality

3,368





%







%







%



3,368





%



183,232





1.7

%



186,600





1.7

%

Gyms and fitness





%







%







%







%



5,385





%



5,385





%

Transportation

20





%







%



3,353





%



3,373





%



61,485





0.6

%



64,858





0.6

%

Oil and gas





%







%



296





%



296





%



11,139





0.1

%



11,435





0.1

%

Residential care facilities





%







%







%







%



228,412





2.1

%



228,412





2.1

%

Retail buildings

600





%



291





%



786





%



1,677





%



441,355





4.1

%



443,032





4.1

%

Education/student housing





%







%



503





%



503





%



143,306





1.3

%



143,809





1.3

%

Construction/development:















































   Education/student housing





%







%







%







%



33,520





0.3

%



33,520





0.3

%

   Hotels/hospitality





%







%







%







%



25,514





0.2

%



25,514





0.2

%

   Residential care facilities





%







%







%







%



35,861





0.3

%



35,861





0.3

%

   All other

construction/development

2,650





%



351





%



5,587





0.1

%



8,588





0.1

%



193,589





1.8

%



202,177





1.9

%

All other sectors

20,126





0.2

%



15,028





0.1

%



59,893





0.6

%



95,047





0.9

%



9,285,703





85.5

%



9,380,750





86.4

%

   Total loans

$

27,816





0.3

%



$

15,670





0.1

%



$

70,589





0.7

%



$

114,075





1.1

%



$

10,744,712





98.9

%



$

10,858,787





100.0

%



*     Percent of total loans outstanding.

 

Loan deferrals

The following table represents loans that entered into various deferments offered by the Company to aid customers in the COVID-19 pandemic. The loan balances are as of June 30, 2020, however, the approval of the deferral occurred prior and was executed by the Company by June 30, 2020. Of these loan deferrals, 303 borrowers applied for and received PPP loans totaling approximately $51.8 million:





Total loan deferrals



Second request deferrals approved

At June 30, 2020

Number

of loans



 Outstanding

principal balance



**



Number

of loans



Outstanding

principal balance



**

Residential mortgage loans

936



$

131,567





4.1

%



10



$

1,660





0.1

%

Home equity loans

652



42,836





3.0

%



11



786





0.1

%

Consumer loans

2,455



49,374





3.3

%



128



3,033





0.2

%

Commercial real estate loans

1,511



967,340





29.2

%



5



2,323





0.1

%

Commercial loans

652



120,999





8.9

%



5



630





%

   Total loans

6,206



$

1,312,116





12.1

%



159



$

8,432





0.1

%



**   Percent of total loan type outstanding.

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for credit losses (Unaudited)

(dollars in thousands)





Quarter ended



June 30,

2020



March 31,

2020



December 31,

2019



September 30,

2019



June 30,

2019

Beginning balance

$

92,897





57,941





52,859





53,107





55,721



CECL adoption





10,792















Initial allowance on loans purchased with credit deterioration

8,845



















Provision

51,750





27,637





8,223





3,302





4,667



Charge-offs residential mortgage

(38)





(343)





(222)





(190)





(397)



Charge-offs home equity

(173)





(289)





(113)





(466)





(389)



Charge-offs consumer

(3,191)





(3,488)





(3,142)





(3,078)





(2,566)



Charge-offs commercial real estate

(690)





(331)





(107)





(389)





(4,367)



Charge-offs commercial

(10,349)





(815)





(1,143)





(1,151)





(1,087)



Recoveries

1,535





1,793





1,586





1,724





1,525



Ending balance

$

140,586





92,897





57,941





52,859





53,107



Net charge-offs to average loans, annualized

0.51

%



0.16

%



0.14

%



0.16

%



0.34

%

 



Six months ended June 30,



2020



2019

Beginning balance

$

57,941





55,214



CECL adoption

10,792







Initial allowance on loans purchased with credit deterioration

8,845







Provision

79,387





11,134



Charge-offs residential mortgage

(381)





(754)



Charge-offs home equity

(462)





(542)



Charge-offs consumer

(6,679)





(5,587)



Charge-offs commercial real estate

(1,021)





(4,971)



Charge-offs commercial

(11,164)





(4,357)



Recoveries

3,328





2,970



Ending balance

$

140,586





53,107



Net charge-offs to average loans, annualized

0.35

%



0.34

%

 



June 30, 2020



Originated loans



Acquired loans



Total loans



Balance



Reserve



Balance



Reserve



Balance



Reserve

Residential mortgage loans

$

2,840,430





9,846





382,325





1,862





3,222,755





11,708



Home equity loans

1,153,969





7,272





296,401





2,091





1,450,370





9,363



Consumer loans

1,207,050





12,794





311,069





3,547





1,518,119





16,341



Personal Banking Loans

5,201,449





29,912





989,795





7,500





6,191,244





37,412



Commercial real estate loans

2,422,605





63,654





886,219





24,006





3,308,824





87,660



Commercial loans

1,140,714





12,497





218,005





3,017





1,358,719





15,514



Commercial Banking Loans

3,563,319





76,151





1,104,224





27,023





4,667,543





103,174



Total Loans

$

8,764,768





106,063





2,094,019





34,523





10,858,787





140,586



 

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, 2020



March 31, 2020



December 31, 2019



September 30, 2019



June 30, 2019



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

$

3,092,392





29,019





3.75

%



$

2,845,483





28,062





3.94

%



$

2,847,932





28,011





3.93

%



$

2,894,716





28,991





4.01

%



$

2,857,425





29,300





4.10

%

  Home equity loans

1,415,091





13,806





3.92

%



1,345,059





14,801





4.43

%



1,333,748





15,354





4.57

%



1,316,033





16,131





4.86

%



1,319,056





17,717





5.39

%

  Consumer loans

1,375,130





14,993





4.39

%



1,123,336





12,160





4.35

%



1,073,565





12,016





4.44

%



1,028,579





11,916





4.60

%



945,080





10,736





4.57

%

  Commercial real estate loans

3,156,749





34,595





4.34

%



2,747,419





31,437





4.53

%



2,741,687





32,985





4.71

%



2,796,351





34,441





4.82

%



2,801,953





35,537





5.02

%

  Commercial loans

1,161,228





11,269





3.84

%



712,621





8,856





4.92

%



717,438





9,841





5.37

%



710,847





9,949





5.48

%



670,613





7,966





4.70

%

Total loans receivable (a) (b) (d)

10,200,590





103,682





4.09

%



8,773,918





95,316





4.37

%



8,714,370





98,207





4.47

%



8,746,526





101,428





4.60

%



8,594,127





101,256





4.73

%

Mortgage-backed securities (c)

714,657





4,038





2.26

%



668,470





4,175





2.50

%



667,910





4,237





2.54

%



641,085





4,188





2.61

%



644,887





4,280





2.65

%

Investment securities (c) (d)

170,309





1,244





2.92

%



144,152





881





2.44

%



151,289





938





2.48

%



218,753





1,168





2.14

%



226,325





1,198





2.12

%

FHLB stock, at cost

22,192





309





5.60

%



15,931





262





6.61

%



13,400





262





7.76

%



16,302





307





7.47

%



16,117





316





7.86

%

Other interest-earning deposits

623,870





185





0.12

%



34,697





135





1.54

%



31,624





169





2.09

%



28,832





172





2.33

%



20,983





159





3.00

%

Total interest-earning assets

11,731,618





109,458





3.75

%



9,637,168





100,769





4.21

%



9,578,593





103,813





4.30

%



9,651,498





107,263





4.41

%



9,502,439





107,209





4.53

%

Noninterest-earning assets (e)

1,858,513













960,303













869,117













916,781













910,225











Total assets

$

13,590,131













$

10,597,471













$

10,447,710













$

10,568,279













$

10,412,664











Liabilities and shareholders' equity:



























































Interest-bearing liabilities:



























































Savings deposits

$

1,884,202





648





0.14

%



$

1,611,111





727





0.18

%



$

1,615,996





792





0.19

%



$

1,658,670





788





0.19

%



$

1,696,715





777





0.18

%

Interest-bearing demand deposits

2,428,060





812





0.13

%



1,915,871





1,307





0.27

%



1,769,623





1,570





0.35

%



1,655,952





1,711





0.41

%



1,674,779





1,569





0.38

%

Money market deposit accounts

2,204,810





1,600





0.29

%



1,921,243





3,088





0.65

%



1,845,535





3,226





0.69

%



1,798,175





3,772





0.83

%



1,776,558





3,433





0.78

%

Time deposits

1,761,260





6,276





1.43

%



1,528,891





6,281





1.65

%



1,607,992





7,305





1.80

%



1,618,591





7,423





1.82

%



1,561,034





6,705





1.72

%

Borrowed funds (f)

371,700





296





0.32

%



240,118





709





1.19

%



177,670





444





0.99

%



243,960





1,002





1.63

%



147,119





413





1.13

%

Junior subordinated debentures

127,472





837





2.60

%



121,809





1,038





3.37

%



121,796





1,136





3.65

%



121,767





1,235





3.97

%



121,757





1,307





4.25

%

Total interest-bearing liabilities

8,777,504





10,469





0.48

%



7,339,043





13,150





0.72

%



7,138,612





14,473





0.80

%



7,097,115





15,931





0.89

%



6,977,962





14,204





0.82

%

Noninterest-bearing demand deposits (g)

2,401,368













1,640,180













1,800,861













1,915,392













1,888,697











Noninterest-bearing liabilities

882,391













268,139













158,434













216,433













225,623











Total liabilities

12,061,263













9,247,362













9,097,907













9,228,940













9,092,282











Shareholders' equity

1,528,868













1,350,109













1,349,803













1,339,339













1,320,382











Total liabilities and shareholders' equity

$

13,590,131













$

10,597,471













$

10,447,710













$

10,568,279













$

10,412,664











Net interest income/Interest rate spread





98,989





3.27

%







87,619





3.48

%







89,340





3.50

%







91,332





3.52

%







93,005





3.71

%

Net interest-earning assets/Net interest

margin

$

2,954,114









3.38

%



$

2,298,125









3.66

%



$

2,439,981









3.73

%



$

2,554,383









3.79

%



$

2,524,477









3.91

%

Ratio of interest-earning assets to interest-

bearing liabilities

1.34X













1.31X













1.34X













1.36X













1.36X

















































































(a)

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

(b)

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

(c)

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

(d)

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

(e)

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

(f)

Average balances include FHLB borrowings and collateralized borrowings.

(g)

Average cost of deposits were 0.35%, 0.53%, 0.59%, 0.63%, and 0.58%, respectively.

(h)

Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.06%, 4.35%, 4.46%, 4.59%, and 4.71%, respectively, Investment securities - 2.36%, 2.31%, 2.34%, 2.03%, and 2.01%, respectively, Interest-earning assets - 3.72%, 4.19%, 4.28%, 4.39%, and 4.51%, respectively. GAAP basis net interest rate spreads were 3.24%, 3.47%, 3.48%, 3.50%, and 3.69%, respectively, and GAAP basis net interest margins were 3.34%, 3.64%, 3.71%, 3.77%, and 3.90%, respectively.

 

Average Balance Sheet

(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,



2020



2019



Average

balance



Interest



Avg.

yield/

cost (h)



Average

balance



Interest



Avg.

yield/

cost (h)

Assets























Interest-earning assets:























Residential mortgage loans

$

2,969,096





57,081





3.85

%



$

2,850,031





58,582





4.11

%

Home equity loans

1,380,076





28,607





4.17

%



1,292,662





33,765





5.27

%

Consumer loans

1,249,233





27,153





4.37

%



909,007





20,927





4.64

%

Commercial real estate loans

2,952,084





66,032





4.42

%



2,681,848





66,303





4.92

%

Commercial loans

936,924





20,124





4.25

%



643,005





16,933





5.24

%

Loans receivable (a) (b) (d)

9,487,413





198,997





4.22

%



8,376,553





196,510





4.73

%

Mortgage-backed securities (c)

691,564





8,213





2.38

%



624,786





8,245





2.64

%

Investment securities (c) (d)

157,231





2,125





2.70

%



226,815





2,364





2.08

%

FHLB stock, at cost

19,062





571





6.02

%



16,096





487





6.10

%

Other interest-earning deposits

329,284





320





0.19

%



16,381





259





3.14

%

Total interest-earning assets

10,684,554





210,226





3.96

%



9,260,631





207,865





4.53

%

Noninterest-earning assets (e)

1,409,247













889,409



































Total assets

$

12,093,801













$

10,150,040



































Liabilities and shareholders' equity























Interest-bearing liabilities:























Savings deposits

$

1,747,656





1,375





0.16

%



$

1,673,957





1,535





0.18

%

Interest-bearing demand deposits

2,171,970





2,119





0.20

%



1,588,989





2,732





0.35

%

Money market deposit accounts

2,061,226





4,688





0.46

%



1,735,185





6,011





0.70

%

Time deposits

1,645,077





12,557





1.54

%



1,497,208





12,351





1.66

%

Borrowed funds (f)

305,910





1,005





0.66

%



202,029





1,419





1.42

%

Junior subordinated debentures

124,638





1,875





2.98

%



118,242





2,463





4.14

%

Total interest-bearing liabilities

8,056,477





23,619





0.59

%



6,815,610





26,511





0.78

%

Noninterest-bearing demand deposits (g)

2,022,177













1,699,496











Noninterest-bearing liabilities

575,658













336,600



































Total liabilities

10,654,312













8,851,706



































Shareholders' equity

1,439,489













1,298,334



































Total liabilities and shareholders' equity

$

12,093,801













$

10,150,040



































Net interest income/Interest rate spread





186,607





3.37

%







181,354





3.75

%

























Net interest-earning assets/Net interest

margin

$

2,628,077









3.49

%



$

2,445,021









3.92

%

























Ratio of interest-earning assets to interest-

bearing liabilities

1.33X













1.36X



































(a)

Average gross loans 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)

Average cost of deposits were 0.43% and 0.56%, respectively.

(h)

Shown on a FTE basis. GAAP basis yields were: loans — 4.20% and 4.71%, respectively; investment securities — 2.34% and 1.99%, respectively; interest-earning assets — 3.93% and 4.51%, respectively. GAAP basis net interest rate spreads were 3.34% and 3.73%, respectively; and GAAP basis net interest margins were 3.47% and 3.90%, respectively.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-second-quarter-2020-earnings-and-quarterly-dividend-301100208.html

SOURCE Northwest Bancshares, Inc.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsDividendsPress ReleasesBanking/Financial Services
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!