Northwest Bancshares, Inc. Announces First Quarter 2021 Earnings and Quarterly Dividend Increase

WARREN, Pa., April 26, 2021 /PRNewswire/ -- Northwest Bancshares, Inc. (the "Company") NWBI announced net income for the quarter ended March 31, 2021 of $40.2 million, or $0.32 per diluted share.  This represents an increase of $32.3 million compared to the same quarter last year when net income was $7.9 million, or $0.07 per diluted share.  The annualized returns on average shareholders' equity and average assets for the quarter ended March 31, 2021 were 10.61% and 1.17% compared to 2.37% and 0.30% for the same quarter last year. 

The Company also announced that its Board of Directors increased the quarterly cash dividend by 5.3% to $0.20 per share payable on May 17, 2021 to shareholders of record as of May 6, 2021.  This is the 106th consecutive quarter in which the Company has paid a cash dividend.  Based on the market value of the Company's common stock as of March 31, 2021, this represents an annualized dividend yield of approximately 5.5%.

In making this announcement, Ronald J. Seiffert, Chairman, President and CEO, noted, "We are extremely pleased with the current quarter results beginning once again with strong fee income led by our mortgage banking operations.  We are also delighted to report that our credit loss provision decreased significantly from prior year and prior quarter as we continue to see economic forecasts improve.  From a credit quality perspective, delinquencies continue to be well maintained while payment deferrals on loans declined to just $53.8 million, or 0.5% of the loan portfolio, at March 31, 2021 as compared to $129.9 million at December 31, 2020.  Despite the increase in nonperforming loans, or loans for which the accrual of interest has ceased, by $120.7 million during the quarter, classified loans declined from the December quarter by $21.6 million, or 4.4%, indicating that these potential problem loans had already previously been identified and an adequate reserve has already been allocated."

Mr. Seiffert continued, "During the first quarter, we also announced the divestiture of our insurance business to a very qualified and compassionate buyer in USI Insurance Services. As we assessed this business line for the past several years, it became clear that we were not going to be able to scale this business line in a meaningful way and that our resources and capital are better spent on our core banking businesses.  The sale is expected to close during the second quarter."

Net interest income increased by $13.2 million, or 15.2%, to $100.5 million for the quarter ended March 31, 2021, from $87.2 million for the quarter ended March 31, 2020, largely due to a $7.3 million, or 7.7%, increase in interest income on loans receivable.  This increase in interest income on loans was mainly due to an increase of $1.633 billion, or 18.6%, in the average balance of loans, primarily as a result of the acquisition of MutualBank during the second quarter of 2020.  Also contributing to this increase in net interest income was a decrease of $5.9 million, or 51.6%, in interest expense on deposits 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 0.33% for the quarter ended March 31, 2021 from 0.72% for the quarter ended March 31, 2020. Despite the overall increase in net interest income, net interest margin decreased to 3.18% for the quarter ended March 31, 2021 from 3.66% for the same quarter last year as interest earning asset yields decreased to 3.42% for the quarter ended March 31, 2021 from 4.21% for the quarter ended March 31, 2020. Contributing to the overall decline in average asset yield was the increase in average cash balances of $766.4 million, earning just 0.09%, due to deposit growth associated with Payroll Protection Program ("PPP") loan funds and consumer stimulus checks, as well as the overall decrease in market interest rates beginning with the decrease in the targeted federal funds rate of 1.25% by the Federal Reserve in March of 2020.

The provision for credit losses decreased by $33.3 million due to a current period credit of $5.6 million for the quarter ended March 31, 2021, compared to a provision expense of $27.6 million for the quarter ended March 31, 2020 because of a release in the allowance for credit losses due to continued improvements in economic forecasts.  Total classified loans increased by $253.6 million to $467.7 million, or 4.51% of total loans, at March 31, 2021 from $214.1 million, or 2.42% of total loans, as of March 31, 2020.  This increase was primarily due to the downgrade of commercial loans in certain industries impacted by COVID-19. 

Noninterest income increased by $4.0 million, or 14.2%, to $32.0 million for the quarter ended March 31, 2021, from $28.0 million for the quarter ended March 31, 2020.  This increase was primarily due to the increase in mortgage banking income of $4.8 million to $6.0 million for the quarter ended March 31, 2021 from $1.2 million for the quarter ended March 31, 2020. 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, trust and other financial services income increased $1.5 million, or 29.7%, as a result of additional fee income from the MutualBank acquisition. Slightly offsetting these increases was a decrease in service charges and fees of $2.7 million, or 18.0%, due to the impact of the Durbin amendment on our interchange fees which came into effect in the second half of 2020.

Noninterest expense increased by $7.6 million, or 9.6%, to $86.2 million for the quarter ended March 31, 2021, from $78.6 million for the quarter ended March 31, 2020.  This increase resulted primarily from an increase of $4.5 million, or 10.5%, in compensation and employee benefits due primarily to the addition of MutualBank employees during the second quarter of 2020.  Also contributing to this increase was an increase of $2.3 million, or 20.8%, in processing expenses as we continue to invest in technology and infrastructure and as activity-driven utilization fees for online and mobile banking has increased.  Professional services expense increased $1.8 million, or 62.9%, due to the utilization of third-party experts to recruit talent and assist with our digital strategy rollout. Premises and occupancy costs increased $1.3 million, or 18.0%, over the prior year due primarily to additional snow removal costs. Lastly, Federal Deposit Insurance Corporation ("FDIC") insurance premiums increased $1.3 million due to assessment credits received in the previous year.

The provision for income taxes increased by $10.6 million to $11.6 million for the quarter ended March 31, 2021, from $1.0 million for the quarter ended March 31, 2020 due to higher income before income taxes.

Northwest Bancshares, Inc. is the holding company of Northwest Bank, which is headquartered in Warren, Pennsylvania. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of March 31, 2021, Northwest operated 162 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)





March 31,

2021



December 31,

2020



March 31,

2020

Assets











Cash and cash equivalents

$

979,290





736,277





276,454



Marketable securities available-for-sale (amortized cost of $1,430,352, $1,375,685 and $749,703, respectively)

1,430,131





1,398,941





765,579



Marketable securities held-to-maturity (fair value of $593,232, $179,666 and $17,968, respectively)

604,284





178,887





17,208



Total cash and cash equivalents and marketable securities

3,013,705





2,314,105





1,059,241















Residential mortgage loans held-for-sale

46,270





58,786





6,426



Residential mortgage loans

2,925,408





3,009,335





2,831,860



Home equity loans

1,407,524





1,467,736





1,353,263



Consumer loans

1,554,355





1,507,993





1,178,055



Commercial real estate loans

3,289,436





3,345,889





2,755,468



Commercial loans

1,145,047





1,191,110





711,802



Total loans receivable

10,368,040





10,580,849





8,836,874



Allowance for credit losses

(123,997)





(134,427)





(92,897)



Loans receivable, net

10,244,043





10,446,422





8,743,977















FHLB stock, at cost

21,861





21,748





13,131



Accrued interest receivable

28,732





35,554





25,531



Real estate owned, net

1,738





2,232





1,075



Premises and equipment, net

158,784





161,538





147,427



Bank-owned life insurance

252,599





253,951





190,127



Goodwill

382,356





382,279





346,103



Other intangible assets, net

18,342





19,936





21,425



Other assets

148,196





168,503





133,159



Total assets

$

14,270,356





13,806,268





10,681,196



Liabilities and shareholders' equity











Liabilities











Noninterest-bearing demand deposits

$

3,000,019





2,716,224





1,736,622



Interest-bearing demand deposits

2,826,461





2,755,950





1,975,830



Money market deposit accounts

2,521,881





2,437,539





1,946,113



Savings deposits

2,229,214





2,047,424





1,640,414



Time deposits

1,535,519





1,642,096





1,493,756



Total deposits

12,113,094





11,599,233





8,792,735















Borrowed funds

253,617





283,044





191,599



Junior subordinated debentures

128,859





128,794





121,813



Advances by borrowers for taxes and insurance

44,024





45,230





47,154



Accrued interest payable

659





2,054





834



Other liabilities

189,109





209,210





185,269



Total liabilities

12,729,362





12,267,565





9,339,404



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, 127,222,648, 127,019,452, and 106,933,483 shares issued and outstanding, respectively

1,272





1,270





1,069



Additional paid-in capital

1,018,822





1,015,502





808,250



Retained earnings

571,612





555,480





561,380



Accumulated other comprehensive loss

(50,712)





(33,549)





(28,907)



Total shareholders' equity

1,540,994





1,538,703





1,341,792



Total liabilities and shareholders' equity

$

14,270,356





13,806,268





10,681,196















Equity to assets

10.80

%



11.14

%



12.56

%

Tangible common equity to assets*

8.22

%



8.48

%



9.45

%

Book value per share

$

12.11





12.11





12.55



Tangible book value per share*

$

8.96





8.95





9.11



Closing market price per share

$

14.45





12.74





11.57



Full time equivalent employees

2,443





2,421





2,223



Number of banking offices

170





170





178





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

 

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income/(Loss) (Unaudited)

(dollars in thousands, except per share amounts)





Quarter ended



March 31,

2021



December 31,

2020



September 30,

2020



June 30,

2020



March 31,

2020











Interest income:



















Loans receivable

$

102,318





105,681





107,241





103,012





94,973



Mortgage-backed securities

4,200





4,551





4,652





4,038





4,175



Taxable investment securities

634





471





427





439





648



Tax-free investment securities

575





656





655





564





185



FHLB stock dividends

116





192





218





309





262



Interest-earning deposits

183





178





221





185





135



Total interest income

108,026





111,729





113,414





108,547





100,378



Interest expense:



















Deposits

5,514





6,714





8,443





9,336





11,403



Borrowed funds

2,054





2,127





1,437





1,133





1,747



Total interest expense

7,568





8,841





9,880





10,469





13,150



Net interest income

100,458





102,888





103,534





98,078





87,228



   Provision for credit losses

(5,620)





(2,230)





6,818





51,750





27,637



Net interest income after provision for credit losses

106,078





105,118





96,716





46,328





59,591



Noninterest income:



















Gain/(loss) on sale of investments

(21)





75





(12)





(8)





181



Gain on sale of loans

















1,302



Service charges and fees

12,394





13,074





14,354





13,069





15,116



Trust and other financial services income

6,484





5,722





5,376





4,823





5,001



Insurance commission income

2,546





2,034





2,331





2,395





2,372



Gain/(loss) on real estate owned, net

(42)





114





(32)





(97)





(91)



Income from bank-owned life insurance

1,736





1,330





1,576





1,248





1,036



Mortgage banking income

6,020





7,120





11,055





12,022





1,194



Other operating income

2,836





2,654





2,022





2,044





1,865



Total noninterest income

31,953





32,123





36,670





35,496





27,976



Noninterest expense:



















Compensation and employee benefits

47,239





48,209





47,371





40,049





42,746



Premises and occupancy costs

8,814





7,614





8,342





7,195





7,471



Office operations

3,165





4,009





4,626





3,711





3,382



Collections expense

616





893





1,264





644





474



Processing expenses

13,456





12,186





15,042





11,680





11,142



Marketing expenses

1,980





1,994





2,147





2,047





1,507



Federal deposit insurance premiums

1,307





1,651





1,498





1,618







Professional services

4,582





3,599





3,246





2,825





2,812



Amortization of intangible assets

1,594





1,664





1,781





1,760





1,651



Real estate owned expense

75





64





111





89





95



Merger/asset disposition expense

9





7,238





1,414





9,679





2,458



Other expenses

3,354





3,728





27





7,866





4,873



Total noninterest expense

86,191





92,849





86,869





89,163





78,611



Income/(loss) before income taxes

51,840





44,392





46,517





(7,339)





8,956



Income tax expense/(benefit)

11,603





9,327





8,467





(1,139)





1,017



Net income/(loss)

$

40,237





35,065





38,050





(6,200)





7,939























Basic earnings/(loss) per share

$

0.32





0.28





0.30





(0.05)





0.08



Diluted earnings/(loss) per share

$

0.32





0.28





0.30





(0.05)





0.07























Weighted average common shares outstanding - basic

126,182,409





126,713,429





126,855,810





121,480,563





105,882,553



Weighted average common shares outstanding - diluted

126,700,024





126,728,602





126,855,810





121,480,563





106,148,247























Annualized return on average equity

10.61

%



9.00

%



9.82

%



(1.63)

%



2.37

%

Annualized return on average assets

1.17

%



1.01

%



1.09

%



(0.18)

%



0.30

%

Annualized return on tangible common equity **

14.31

%



12.27

%



13.28

%



(2.22)

%



3.28

%





















Efficiency ratio *

63.88

%



62.18

%



59.68

%



58.19

%



64.67

%

Annualized noninterest expense to average assets *

2.45

%



2.42

%



2.39

%



2.30

%



2.83

%



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

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



 

 

Northwest Bancshares, Inc. and Subsidiaries

Asset Quality (Unaudited)

(dollars in thousands)





March 31,

2021



December 31,

2020



September 30,

2020



June 30,

2020



March 31,

2020

Nonaccrual loans current:



















Residential mortgage loans

$

164





21





1,128





413





285



Home equity loans

268





154





366





481





592



Consumer loans

225





207





234





214





77



Commercial real estate loans

146,304





20,317





22,610





30,677





14,337



Commercial loans

6,361





16,027





6,488





6,551





3,514



Total nonaccrual loans current

$

153,322





36,726





30,826





38,336





18,805



Nonaccrual loans delinquent 30 days to 59 days:



















Residential mortgage loans

$

1,261





647





60





61





691



Home equity loans

340





338





445





247





159



Consumer loans

254





301





230





335





143



Commercial real estate loans

965





1,416





692





2,372





496



Commercial loans

1,538





87





57











Total nonaccrual loans delinquent 30 days to 59 days

$

4,358





2,789





1,484





3,015





1,489



Nonaccrual loans delinquent 60 days to 89 days:



















Residential mortgage loans

$

813





767





576





1,013





218



Home equity loans

417





190





618





960





539



Consumer loans

649





583





781





666





488



Commercial real estate loans

1,877





714





2,745





163





2,096



Commercial loans

7,919





48





15





768





37



Total nonaccrual loans delinquent 60 days to 89 days

$

11,675





2,302





4,735





3,570





3,378



Nonaccrual loans delinquent 90 days or more:



















Residential mortgage loans

$

9,333





14,489





14,750





15,369





10,457



Home equity loans

7,044





8,441





7,845





7,060





5,816



Consumer loans

3,625





5,473





5,352





6,896





3,459



Commercial real estate loans

29,737





25,287





35,496





29,729





25,342



Commercial loans

4,860





7,325





6,310





11,535





16,685



Total nonaccrual loans delinquent 90 days or more

$

54,599





61,015





69,753





70,589





61,759



Total nonaccrual loans

$

223,954





102,832





106,798





115,510





85,431



Total nonaccrual loans

$

223,954





102,832





106,798





115,510





85,431



Loans 90 days past due and still accruing

197





585





495





77





31



Nonperforming loans

224,151





103,417





107,293





115,587





85,462



Real estate owned, net

1,738





2,232





2,575





1,897





1,075



Nonperforming assets

$

225,889





105,649





109,868





117,484





86,537



Nonaccrual troubled debt restructuring *

$

7,390





10,704





17,120





17,562





17,375



Accruing troubled debt restructuring

20,120





21,431





17,684





17,888





15,977



Total troubled debt restructuring

$

27,510





32,135





34,804





35,450





33,352























Nonperforming loans to total loans

2.16

%



0.98

%



1.00

%



1.06

%



0.97

%

Nonperforming assets to total assets

1.58

%



0.77

%



0.80

%



0.85

%



0.81

%

Allowance for credit losses to total loans

1.20

%



1.27

%



1.30

%



1.29

%



1.05

%

Allowance for total loans excluding PPP loan balances

1.24

%



1.32

%



1.36

%



1.36

%



N/A   

Allowance for credit losses to nonperforming loans

55.32

%



129.99

%



130.68

%



121.63

%



108.70

%



*    Amounts included in nonperforming loans above.



 

 

Northwest Bancshares, Inc. and Subsidiaries

Loans by Credit Quality Indicators (Unaudited)

(dollars in thousands)



At March 31, 2021



Pass



Special

mention *



Substandard **



Doubtful ***



Loss



Loans

receivable

Personal Banking:

























Residential mortgage loans



$

2,950,103









21,575













2,971,678



Home equity loans



1,396,757









10,767













1,407,524



Consumer loans



1,547,502









6,853













1,554,355



Total Personal Banking



5,894,362









39,195













5,933,557



Commercial Banking:

























Commercial real estate loans



2,801,082





120,345





368,009













3,289,436



Commercial loans



1,061,884





22,623





60,540













1,145,047



Total Commercial Banking



3,862,966





142,968





428,549













4,434,483



Total loans



$

9,757,328





142,968





467,744













10,368,040



At December 31, 2020

























Personal Banking:

























Residential mortgage loans



$

3,042,544









25,577













3,068,121



Home equity loans



1,455,474









12,262













1,467,736



Consumer loans



1,499,004









8,989













1,507,993



Total Personal Banking



5,997,022









46,828













6,043,850



Commercial Banking:

























Commercial real estate loans



2,852,705





108,021





385,163













3,345,889



Commercial loans



1,092,498





41,278





57,334













1,191,110



Total Commercial Banking



3,945,203





149,299





442,497













4,536,999



Total loans



$

9,942,225





149,299





489,325













10,580,849



At September 30, 2020

























Personal Banking:

























Residential mortgage loans



$

3,117,442









25,927













3,143,369



Home equity loans



1,471,919









12,446













1,484,365



Consumer loans



1,478,109









8,974













1,487,083



Total Personal Banking



6,067,470









47,347













6,114,817



Commercial Banking:

























Commercial real estate loans



2,850,611





110,073





359,059













3,319,743



Commercial loans



1,255,255





40,631





51,406













1,347,292



Total Commercial Banking



4,105,866





150,704





410,465













4,667,035



Total loans



$

10,173,336





150,704





457,812













10,781,852



At June 30, 2020

























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







*

Includes $26.4 million, $31.3 million, $34.7 million, $37.4 million, and $13.1 million of acquired loans at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively.

**

Includes $143.2 million, $153.2 million, $129.2 million, $108.2 million, and $56.8 million of acquired loans at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively.

*** 

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



 

 

Northwest Bancshares, Inc. and Subsidiaries

Loan Delinquency (Unaudited)

(
dollars in thousands)





March 31,

2021



*



December 31,

2020



*



September 30,

2020



*



June 30,

2020



*



March 31,

2020



*

(Number of loans and dollar amount of loans)



























































Loans delinquent 30 days to 59 days:



























































Residential mortgage loans

248





$

22,236





0.7

%



315





$

28,797





0.9

%



17





$

736





%



15





$

629





%



358





$

32,755





1.2

%

Home equity loans

84





3,334





0.2

%



138





4,763





0.3

%



129





4,984





0.3

%



118





4,569





0.3

%



190





7,061





0.5

%

Consumer loans

535





5,732





0.4

%



1,279





10,574





0.7

%



1,078





8,586





0.6

%



629





7,199





0.5

%



953





8,774





0.7

%

Commercial real estate loans

33





12,240





0.4

%



43





10,923





0.3

%



28





5,090





0.2

%



46





14,177





0.4

%



58





12,895





0.5

%

Commercial loans

16





3,032





0.3

%



37





6,405





0.5

%



19





1,797





0.1

%



12





1,242





0.1

%



35





7,545





1.1

%

Total loans delinquent 30 days to 59 days

916





$

46,574





0.4

%



1,812





$

61,462





0.6

%



1,271





$

21,193





0.2

%



820





$

27,816





0.3

%



1,594





$

69,030





0.8

%





























































Loans delinquent 60 days to 89 days:



























































Residential mortgage loans

26





$

2,062





0.1

%



84





$

5,083





0.2

%



65





$

4,788





0.2

%



64





$

5,364





0.2

%



11





$

511





%

Home equity loans

31





953





0.1

%



47





1,656





0.1

%



56





1,860





0.1

%



59





2,326





0.2

%



65





2,652





0.2

%

Consumer loans

169





1,868





0.1

%



322





2,742





0.2

%



323





3,049





0.2

%



258





2,916





0.2

%



265





2,610





0.2

%

Commercial real estate loans

14





7,609





0.2

%



11





1,615





%



14





4,212





0.1

%



18





3,913





0.1

%



12





2,981





0.1

%

Commercial loans

12





8,979





0.8

%



10





864





0.1

%



7





357





%



15





1,151





0.1

%



10





309





%

Total loans delinquent 60 days to 89 days

252





$

21,471





0.2

%



474





$

11,960





0.1

%



465





$

14,266





0.1

%



414





$

15,670





0.1

%



363





$

9,063





0.1

%





























































Loans delinquent 90 days or more: **



























































Residential mortgage loans

121





$

9,333





0.3

%



168





$

14,489





0.5

%



168





$

14,750





0.5

%



185





$

15,369





0.5

%



129





$

10,457





0.4

%

Home equity loans

176





7,044





0.5

%



207





8,441





0.6

%



193





7,845





0.5

%



182





7,060





0.5

%



152





5,816





0.4

%

Consumer loans

454





3,822





0.2

%



720





6,058





0.4

%



696





5,847





0.4

%



709





6,896





0.5

%



445





3,459





0.3

%

Commercial real estate loans

113





29,737





0.9

%



119





25,287





0.8

%



136





35,496





1.1

%



149





29,729





0.9

%



139





25,342





0.9

%

Commercial loans

31





4,860





0.4

%



37





7,325





0.6

%



34





6,310





0.5

%



47





11,535





0.8

%



51





16,685





0.2

%

Total loans delinquent 90 days or more

895





$

54,796





0.5

%



1,251





$

61,600





0.6

%



1,227





$

70,248





0.7

%



1,272





$

70,589





0.7

%



916





$

61,759





0.7

%





























































Total loans delinquent

2,063





$

122,841





1.2

%



3,537





$

135,022





1.3

%



2,963





$

105,707





1.0

%



2,506





$

114,075





1.1

%



2,873





$

139,852





1.6

%





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

**

Includes purchased credit deteriorated loans of $12.7 million, $6.6 million, $20.3 million, $18.0 million, and $298,000 at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, 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 March 31, 2021:



At March 31, 2021

30-59 days

delinquent



*



60-89 days

delinquent



*



90 days

or greater

delinquent



*



Total

delinquent



*



Current



*



Total

loans

 receivable



*

Restaurants/bars

$

310





%



$

355





%



$

759





%



$

1,424





%



$

103,097





1.0

%



$

104,521





1.0

%

Hotels/hospitality

4,285





%



367





%



7,963





0.1

%



12,615





0.1

%



166,694





1.6

%



179,309





1.7

%

Gyms and fitness





%







%







%







%



4,590





%



4,590





%

Transportation

275





%



14





%



296





%



585





%



70,994





0.7

%



71,579





0.7

%

Oil and gas





%







%







%







%



9,200





0.1

%



9,200





0.1

%

Residential care facilities

1,250





%







%







%



1,250





%



246,561





2.4

%



247,811





2.4

%

Retail buildings

1,692





%







%



938





%



2,630





%



445,102





4.3

%



447,732





4.3

%

Education/student housing





%



1,389





%



441





%



1,830





%



138,536





1.3

%



140,366





1.4

%

Construction/development:















































   Education/student housing





%







%







%







%



53,903





0.5

%



53,903





0.5

%

   Hotels/hospitality





%







%







%







%



25,639





0.2

%



25,639





0.2

%

   Residential care facilities

3,450





%







%







%



3,450





%



30,144





0.3

%



33,594





0.3

%

   All other construction/development

319





%



804





%



4,193





%



5,316





0.1

%



178,109





1.7

%



183,425





1.8

%

All other sectors

34,993





0.3

%



18,542





0.2

%



40,206





0.4

%



93,741





0.9

%



8,772,630





84.6

%



8,866,371





85.5

%

   Total loans

$

46,574





0.4

%



$

21,471





0.2

%



$

54,796





0.5

%



$

122,841





1.2

%



$

10,245,199





98.8

%



$

10,368,040





100.0

%



*     Percent of total loans outstanding.



Loan deferrals

     The following table represents loans that entered into and are currently in a deferment offered by the Company to aid customers in the COVID-19 pandemic as of March 31, 2021.







Balance as of

December 31, 2020



Loans returned to full payment status, net of payments



New loans entered into

a deferral



Balance as of

March 31, 2021





Number of loans



 Outstanding principal balance



*



Number of loans



Outstanding principal balance



Number of loans



Outstanding principal balance



Number of loans



Outstanding principal balance



*

Residential mortgage loans



43



$

6,442





0.2

%



42





$

6,119





29





$

4,484





30





$

4,807





0.2

%

Home equity loans



41



2,615





0.2

%



40





2,560





21





1,096





22





1,151





0.1

%

Consumer loans



83



1,299





0.1

%



83





1,299





21





546





21





546





%

Commercial real estate loans



34



118,212





3.5

%



29





80,666





20





6,068





25





43,614





1.3

%

Commercial loans



22



1,332





0.1

%



21





1,301





59





3,633





60





3,664





0.3

%

   Total loans



223



$

129,900





1.2

%



215





$

91,945





150





$

15,827





158





$

53,782

 **



0.5

%



*     Percent of total loans outstanding by the respective total amount of that type of loan.

**   As of March 31, 2021, $53.6 million of loan deferrals expire in Q2 2021 and $150,000 of loan deferrals expire in Q3 2021.  Of the $53.8 total loan deferrals, $37.1 million are in the hospitality industry.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for Credit Losses (Unaudited)

(dollars in thousands)





Quarter ended



March 31,

2021



December 31,

2020



September 30,

2020



June 30,

2020



March 31,

2020

Beginning balance

$

134,427





140,209





140,586





92,897





57,941



CECL adoption

















10,792



Initial allowance on loans purchased with credit deterioration













8,845







Provision

(5,620)





(2,230)





6,818





51,750





27,637



Charge-offs residential mortgage

(855)





(407)





(129)





(38)





(343)



Charge-offs home equity

(228)





(58)





(88)





(173)





(289)



Charge-offs consumer

(2,603)





(2,623)





(3,356)





(3,191)





(3,488)



Charge-offs commercial real estate

(4,626)





(2,770)





(532)





(690)





(331)



Charge-offs commercial

(54)





(156)





(4,892)





(10,349)





(815)



Recoveries

3,556





2,462





1,802





1,535





1,793



Ending balance

$

123,997





134,427





140,209





140,586





92,897



Net charge-offs to average loans, annualized

0.19

%



0.13

%



0.27

%



0.51

%



0.16

%

 

 



March 31, 2021



Originated loans



Acquired loans



Total loans



Balance



Reserve



Balance



Reserve



Balance



Reserve

Residential mortgage loans

$

2,693,075





5,117





278,603





744





2,971,678





5,861



Home equity loans

1,138,718





3,984





268,806





1,257





1,407,524





5,241



Consumer loans

1,351,401





15,026





202,954





2,425





1,554,355





17,451



Personal Banking Loans

5,183,194





24,127





750,363





4,426





5,933,557





28,553



Commercial real estate loans

2,568,567





60,874





720,869





16,085





3,289,436





76,959



Commercial loans

1,011,722





10,571





133,325





7,914





1,145,047





18,485



Commercial Banking Loans

3,580,289





71,445





854,194





23,999





4,434,483





95,444



Total Loans

$

8,763,483





95,572





1,604,557





28,425





10,368,040





123,997



 

 

Northwest Bancshares, Inc. and Subsidiaries

Average Balance Sheet (Unaudited)

(dollars in thousands) 



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



Quarter ended 



March 31, 2021



December 31, 2020



September 30, 2020



June 30, 2020



March 31, 2020



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

$

3,007,439





26,366





3.51

%



$

3,089,916





27,503





3.56

%



$

3,176,436





28,769





3.62

%



$

3,092,392





29,019





3.75

%



$

2,845,483





28,062





3.94

%

Home equity loans

1,432,009





12,815





3.63

%



1,472,527





13,535





3.66

%



1,479,429





13,732





3.69

%



1,415,091





13,806





3.92

%



1,345,059





14,801





4.43

%

Consumer loans

1,463,284





14,566





4.04

%



1,444,860





15,874





4.37

%



1,437,828





15,851





4.39

%



1,375,130





14,993





4.39

%



1,123,336





12,160





4.35

%

Commercial real estate loans

3,313,892





38,471





4.64

%



3,317,418





37,965





4.48

%



3,306,386





36,887





4.37

%



3,156,749





34,595





4.34

%



2,747,419





31,437





4.53

%

Commercial loans

1,189,812





10,566





3.55

%



1,325,047





11,414





3.37

%



1,377,223





12,603





3.58

%



1,161,228





11,269





3.84

%



712,621





8,856





4.92

%

Total loans receivable (a) (b) (d)

10,406,436





102,784





4.01

%



10,649,768





106,291





3.97

%



10,777,302





107,842





3.98

%



10,200,590





103,682





4.09

%



8,773,918





95,316





4.37

%

Mortgage-backed securities (c)

1,324,558





4,200





1.27

%



1,166,739





4,551





1.56

%



1,004,803





4,651





1.85

%



714,657





4,038





2.26

%



668,470





4,175





2.50

%

Investment securities (c) (d)

331,358





1,381





1.67

%



252,898





1,380





2.18

%



216,081





1,336





2.47

%



170,309





1,244





2.92

%



144,152





881





2.44

%

FHLB stock, at cost

21,811





116





2.17

%



23,346





192





3.27

%



25,595





218





3.39

%



22,192





309





5.60

%



15,931





262





6.61

%

Other interest-earning deposits

801,119





183





0.09

%



632,494





178





0.11

%



791,601





221





0.11

%



623,870





185





0.12

%



34,697





135





1.54

%

Total interest-earning assets

12,885,282





108,664





3.42

%



12,725,245





112,592





3.52

%



12,815,382





114,268





3.55

%



11,731,618





109,458





3.75

%



9,637,168





100,769





4.21

%

Noninterest-earning assets (e)

1,102,477













1,066,609













1,088,273













1,858,513













960,303











Total assets

$

13,987,759













$

13,791,854













$

13,903,655













$

13,590,131













$

10,597,471











Liabilities and shareholders' equity:



























































Interest-bearing liabilities:



























































Savings deposits

$

2,118,030





625





0.12

%



$

2,028,155





617





0.12

%



$

2,015,604





648





0.13

%



$

1,884,202





648





0.14

%



$

1,611,111





727





0.18

%

Interest-bearing demand deposits

2,783,429





429





0.06

%



2,699,515





476





0.07

%



2,680,591





763





0.11

%



2,428,060





812





0.13

%



1,915,871





1,307





0.27

%

Money market deposit accounts

2,497,495





657





0.11

%



2,426,513





960





0.16

%



2,347,097





1,347





0.23

%



2,204,810





1,600





0.29

%



1,921,243





3,088





0.65

%

Time deposits

1,583,525





3,803





0.97

%



1,676,094





4,660





1.11

%



1,782,350





5,685





1.27

%



1,761,260





6,276





1.43

%



1,528,891





6,281





1.65

%

Borrowed funds (f)

267,163





1,412





2.14

%



352,392





1,469





1.66

%



420,715





717





0.68

%



371,700





296





0.32

%



240,118





709





1.19

%

Junior subordinated debentures

128,817





642





1.99

%



128,752





659





2.00

%



128,658





720





2.19

%



127,472





837





2.60

%



121,809





1,038





3.37

%

Total interest-bearing liabilities

9,378,459





7,568





0.33

%



9,311,421





8,841





0.38

%



9,375,015





9,880





0.42

%



8,777,504





10,469





0.48

%



7,339,043





13,150





0.72

%

Noninterest-bearing demand deposits (g)

2,805,206













2,675,986













2,703,266













2,401,368













1,640,180











Noninterest-bearing liabilities

265,667













253,966













284,440













882,391













268,139











Total liabilities

12,449,332













12,241,373













12,362,721













12,061,263













9,247,362











Shareholders' equity

1,538,427













1,550,481













1,540,934













1,528,868













1,350,109











Total liabilities and shareholders' equity

$

13,987,759













$

13,791,854













$

13,903,655













$

13,590,131













$

10,597,471











Net interest income/Interest rate spread





101,096





3.09

%







103,751





3.14

%







104,388





3.13

%







98,989





3.27

%







87,619





3.48

%

Net interest-earning assets/Net interest margin

$

3,506,823









3.18

%



$

3,413,824









3.26

%



$

3,440,367









3.26

%



$

2,954,114









3.38

%



$

2,298,125









3.66

%

Ratio of interest-earning assets to interest-bearing liabilities

1.37X











1.37X











1.37X











1.34X











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 ("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, collateralized borrowings and subordinated debt.

(g)   

Average cost of deposits were 0.19%, 0.23%, 0.29%, 0.35%, and 0.53%, respectively.

(h)  

Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 3.99%, 3.94%, 3.96%, 4.06%, and 4.35%, respectively, Investment securities - 1.46%, 1.78%, 2.00%, 2.36%, and 2.31%, respectively, Interest-earning assets - 3.40%, 3.48%, 3.52%, 3.72%, and 4.19%, respectively. GAAP basis net interest rate spreads were 3.07%, 3.11%, 3.10%, 3.24%, and 3.47%, respectively, and GAAP basis net interest margins were 3.16%, 3.23%, 3.23%, 3.34%, and 3.64%, respectively.

 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-first-quarter-2021-earnings-and-quarterly-dividend-increase-301276193.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: EarningsPress 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!