COLUMBUS, Ohio, Jan. 23,
2023 /PRNewswire/ -- Northwest Bancshares,
Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for
the quarter ended December 31, 2022 of $34.6 million, or $0.27 per diluted share. This represents an
increase of $4.6 million, or 15.3%,
compared to the same quarter last year, when net income was
$30.1 million, or $0.24 per diluted share. The annualized
returns on average shareholders' equity and average assets for the
quarter ended December 31, 2022 were 9.38% and 0.98% compared
to 7.65% and 0.82% for the quarter ended December 31,
2021.
The Company also announced that its Board of Directors
declared a quarterly cash dividend of $0.20 per share payable on February 14, 2023
to shareholders of record as of February 2, 2023. This is
the 113th consecutive quarter in which the Company has
paid a cash dividend. Based on the market value of the Company's
common stock as of December 31, 2022, this represents an
annualized dividend yield of approximately 5.7%.
Louis J. Torchio, President
and CEO, added, "We were very pleased with our organic loan growth
this quarter of $178.9 million, or
1.7%, spread across all loan categories. In addition, our net
interest margin expanded by 15 basis points to 3.57%, and asset
quality metrics remain solid. We have also taken additional
measures to reduce expenses and improve our efficiency. We
recently announced the further optimization of eight offices within
our branch network to be completed in April 2023. In-branch
activity continues to slow as customers prefer to transact through
online and mobile channels. In addition, we have re-aligned
our workforce to correspond with our strategic direction as a
commercial bank, further streamlining our operations. These
efforts generated $4.2 million of
severance and restructuring costs in the fourth quarter with an
additional $3.2 million expected to
be recognized in the first quarter of 2023."
Mr. Torchio continued, "These necessary measures will
reduce our overall workforce by approximately 12% and generate
approximately $16.0 million in annual
operating expense savings beginning in the second quarter of 2023.
These operating expense savings are expected to be reinvested in
the Company's strategic initiatives during 2023, focused on
shifting our balance sheet mix and continuing our journey as a
full-service commercial bank. This shift includes further buildout
of our core middle market C&I strategy throughout our footprint
with full relationship banking, including enhanced treasury
management services. In addition, we will further scale small
business lending with particular focus on Small Business
Administration (SBA) financing and secondary market sales, as well
as the recent addition of our new equipment finance team with
specialty finance expertise throughout the east coast"
Net interest income increased by $20.4 million, or 21.1%, to $117.0 million for the quarter ended
December 31, 2022, from $96.7
million for the quarter ended December 31, 2021.
This increase in net interest income is due to both the increase in
market interest rates and the change in our interest-earning asset
mix. Cash in interest-earning deposits was redeployed into higher
yielding loans and investments, which, along with higher market
interest rates, caused the yield on interest-earning assets to
increase to 3.89% for the quarter ended December 31, 2022 from
3.05% for the quarter ended December 31, 2021. This
increase in yield was partially offset by an increase in the cost
of interest-bearing liabilities, which increased to 0.46% for the
quarter ended December 31, 2022 from 0.26% for the quarter
ended December 31, 2021. The net effect of the changes
in interest rates and average balances was an increase in the
Company's net interest margin to 3.57% for the quarter ended
December 31, 2022, from 2.89% for the same quarter last
year.
The provision for credit losses increased by $10.9 million, reflecting an expense of
$9.0 million for the current quarter
ended December 31, 2022 compared to a provision credit of
$1.9 million for the quarter ended
December 31, 2021. This increase was primarily due to
growth within our loan portfolio during the current year in
conjunction with forecasted economic deterioration reflected in our
allowance for credit loss models, including a reduction in home and
used vehicle values. The Company continued to experience
improvement in asset quality as classified loans decreased by
$126.9 million, or 34.9%, to
$236.2 million, or 2.2% of total
loans, at December 31, 2022, from $363.2 million, or 3.6% of total loans, at
December 31, 2021. Total delinquent loans also decreased
to $85.9 million, or 0.8% of loans
receivable, at December 31, 2022 from $96.9 million, or 1.0% of loans receivable, at
December 31, 2021. In addition, the Company experienced net
charge-offs during the current quarter of $806,000, or 0.03% on an annualized basis,
compared to net charge-offs of $5.6
million, or 0.22% on an annualized basis, during the same
quarter last year, for an overall net improvement of $4.8 million.
Noninterest income increased by $816,000, or 3.0%, to $27.9 million for the quarter ended
December 31, 2022, from $27.0
million for the quarter ended December 31,
2021. This increase was primarily due to an increase in our
other operating income of $1.7 million, or 53.5%, to $4.9 million for the quarter ended
December 31, 2022 from $3.2 million for the quarter ended
December 31, 2021. This increase was primarily the result of
gains from the sale of branch buildings associated with the
previously announced branch consolidations and improvements in
other fee income. Partially offsetting this increase was a decline
in mortgage banking income of $1.6
million, or 77.5%, to $477,000
for the quarter ended December 31, 2022 from $2.1 million for the quarter ended
December 31, 2021. This decrease reflects the impact of less
favorable pricing in the secondary market, due primarily to the
volatile interest rate environment, as well as a decrease in
mortgage volumes primarily due to higher market interest
rates.
Noninterest expense increased by $4.4 million, or 5.1%, to $90.7 million for the quarter ended
December 31, 2022 from $86.3
million for the quarter ended December 31, 2021. This
increase was primarily due to an increase in other expenses of
$2.8 million, or 210.5%, and an
increase in merger, asset disposition and restructuring expenses of
$1.4 million, or 50.9%. The
increase in other expense was primarily due to an
increase in our unfunded loan loss reserve associated with the
origination of loans with current off-balance sheet exposure. The
increase in merger, asset disposition and restructuring expense was
a result of severance and fixed asset charges related to the branch
optimization and personnel reduction, as previously
noted.
The provision for income taxes increased by $1.3 million, or 14.1%, to $10.6 million for the quarter ended
December 31, 2022 from $9.3
million for the quarter ended December 31, 2021 due
primarily to an increase in income before taxes in the current
quarter.
Net income for the year ended December 31, 2022 was $133.7 million, or $1.05 per diluted share. This represents a
decrease of $20.7 million, or
13.4%, compared to the year ended December
31, 2021, when net income was $154.3 million, or $1.21 per diluted share. The annualized returns
on average shareholders' equity and average assets for the year
ended December 31, 2022 were 8.80%
and 0.94% compared to 9.91% and 1.08% for the prior year. This
decrease in net income was the result of an increase in provision
for credit losses of $29.7 million, primarily as a result of the
provision credit in 2021 related to the release of reserves
built-up during COVID-19. In addition, noninterest income decreased
by $32.0 million, or 22.4%,
largely due to the $25.3 million gain
recognized on the sale of the insurance business in the second
quarter of 2021. Also contributing to the decline in
noninterest income was an $11.0 million reduction in mortgage banking
income due to the volatile interest rate environment causing
unfavorable pricing in the secondary market and a slowdown in
mortgage loan activity in general. Partially offsetting these
unfavorable variances was an increase in net interest income by
$29.4 million, or 7.5%, to
$420.7 million for the year
ended December 31, 2022 from
$391.3 million for the year
ended December 31, 2021. This
increase in net interest income was due primarily to an increase in
the yield on interest-earning assets to 3.41% for the year ended
December 31, 2022 from 3.18% for the
year ended December 31, 2021, as well
as an increase in the average balance of interest earning assets by
$17.6 million. Lastly,
noninterest expense decreased by $4.9 million, or 1.4%, to $340.0 million for the year ended
December 31, 2022 from $344.9 million for the year ended
December 31, 2021 despite an increase
in merger, asset disposition and restructuring expense of
$2.2 million, or 62.7%, related
to the branch and personnel optimization expense and an increase in
other expenses of $7.3 million
related primarily to the buildup of credit loss reserves for
unfunded loans with off balance sheet exposure.
Headquartered in Columbus,
Ohio, Northwest Bancshares, Inc. is the bank holding company
of Northwest Bank. Founded in 1896 and headquartered in
Warren, Pennsylvania, Northwest
Bank is a full-service financial institution offering a complete
line of business and personal banking products, as well as treasury
management solutions and wealth management services. As of
December 31, 2022, Northwest operated 142 full-service
community banking offices and eight free standing drive-through
facilities in Pennsylvania,
New York, Ohio and Indiana. The common stock of
Northwest Bancshares, Inc. 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 inflation and 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)
|
|
|
December 31,
2022
|
|
September
30,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
139,365
|
|
118,549
|
|
1,279,259
|
Marketable securities
available-for-sale (amortized cost of $1,431,728, $1,466,883 and
$1,565,002, respectively)
|
1,218,108
|
|
1,251,791
|
|
1,548,592
|
Marketable securities
held-to-maturity (fair value of $751,384, $771,238 and $751,513,
respectively)
|
881,249
|
|
899,411
|
|
768,154
|
Total cash and cash
equivalents and marketable securities
|
2,238,722
|
|
2,269,751
|
|
3,596,005
|
Residential mortgage
loans held-for-sale
|
9,913
|
|
15,834
|
|
25,056
|
Residential mortgage
loans
|
3,488,686
|
|
3,386,064
|
|
2,969,564
|
Home equity
loans
|
1,297,674
|
|
1,284,989
|
|
1,319,931
|
Consumer
loans
|
2,168,655
|
|
2,116,238
|
|
1,838,748
|
Commercial real estate
loans
|
2,823,555
|
|
2,812,830
|
|
3,015,484
|
Commercial
loans
|
1,131,969
|
|
1,125,570
|
|
847,609
|
Total loans
receivable
|
10,920,452
|
|
10,741,525
|
|
10,016,392
|
Allowance for credit
losses
|
(118,036)
|
|
(109,819)
|
|
(102,241)
|
Loans receivable,
net
|
10,802,416
|
|
10,631,706
|
|
9,914,151
|
FHLB stock, at
cost
|
40,143
|
|
19,281
|
|
14,184
|
Accrued interest
receivable
|
35,528
|
|
29,536
|
|
25,599
|
Real estate owned,
net
|
413
|
|
450
|
|
873
|
Premises and equipment,
net
|
145,909
|
|
146,173
|
|
156,524
|
Bank-owned life
insurance
|
255,062
|
|
255,015
|
|
256,213
|
Goodwill
|
380,997
|
|
380,997
|
|
380,997
|
Other intangible
assets, net
|
8,560
|
|
9,491
|
|
12,836
|
Other assets
|
205,574
|
|
210,744
|
|
144,126
|
Total
assets
|
$
14,113,324
|
|
13,953,144
|
|
14,501,508
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$ 2,993,243
|
|
3,094,120
|
|
3,099,526
|
Interest-bearing demand
deposits
|
2,686,431
|
|
2,812,730
|
|
2,940,442
|
Money market deposit
accounts
|
2,457,569
|
|
2,577,013
|
|
2,629,882
|
Savings
deposits
|
2,275,020
|
|
2,327,419
|
|
2,303,760
|
Time
deposits
|
1,052,285
|
|
1,067,110
|
|
1,327,555
|
Total
deposits
|
11,464,548
|
|
11,878,392
|
|
12,301,165
|
|
|
|
|
|
|
Borrowed
funds
|
681,166
|
|
150,036
|
|
139,093
|
Subordinated
debt
|
113,840
|
|
113,753
|
|
123,575
|
Junior subordinated
debentures
|
129,314
|
|
129,249
|
|
129,054
|
Advances by borrowers
for taxes and insurance
|
47,613
|
|
29,647
|
|
44,582
|
Accrued interest
payable
|
3,231
|
|
831
|
|
1,804
|
Other
liabilities
|
182,126
|
|
191,450
|
|
178,664
|
Total
liabilities
|
12,621,838
|
|
12,493,358
|
|
12,917,937
|
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, 127,028,848, 126,921,989
and
126,612,183 shares issued and outstanding, respectively
|
1,270
|
|
1,269
|
|
1,266
|
Additional paid-in
capital
|
1,019,647
|
|
1,017,189
|
|
1,010,405
|
Retained
earnings
|
641,727
|
|
632,476
|
|
609,529
|
Accumulated other
comprehensive loss
|
(171,158)
|
|
(191,148)
|
|
(37,629)
|
Total shareholders'
equity
|
1,491,486
|
|
1,459,786
|
|
1,583,571
|
Total liabilities and
shareholders' equity
|
$
14,113,324
|
|
13,953,144
|
|
14,501,508
|
Equity to
assets
|
10.57 %
|
|
10.46 %
|
|
10.92 %
|
Tangible common equity
to assets*
|
8.03 %
|
|
7.88 %
|
|
8.43 %
|
Book value per
share
|
$
11.74
|
|
11.50
|
|
12.51
|
Tangible book value
per share*
|
$
8.67
|
|
8.42
|
|
9.40
|
Closing market price
per share
|
$
13.98
|
|
13.51
|
|
14.16
|
Full time equivalent
employees
|
2,160
|
|
2,191
|
|
2,332
|
Number of banking
offices
|
150
|
|
150
|
|
170
|
*
|
Excludes goodwill and
other intangible assets (non-GAAP).
|
Northwest Bancshares, Inc. and
Subsidiaries
|
Consolidated
Statements of Income (Unaudited)
|
(dollars in
thousands, except per share amounts)
|
|
|
Quarter ended
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
$ 117,137
|
|
106,943
|
|
95,574
|
|
88,174
|
|
95,295
|
Mortgage-backed
securities
|
8,603
|
|
8,683
|
|
7,158
|
|
6,360
|
|
5,743
|
Taxable investment
securities
|
840
|
|
838
|
|
715
|
|
677
|
|
640
|
Tax-free investment
securities
|
701
|
|
709
|
|
683
|
|
674
|
|
688
|
FHLB stock
dividends
|
419
|
|
148
|
|
82
|
|
81
|
|
82
|
Interest-earning
deposits
|
153
|
|
1,295
|
|
1,684
|
|
467
|
|
467
|
Total interest
income
|
127,853
|
|
118,616
|
|
105,896
|
|
96,433
|
|
102,915
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
3,871
|
|
3,157
|
|
3,341
|
|
3,751
|
|
4,295
|
Borrowed
funds
|
6,938
|
|
2,710
|
|
2,290
|
|
2,059
|
|
1,964
|
Total interest
expense
|
10,809
|
|
5,867
|
|
5,631
|
|
5,810
|
|
6,259
|
Net interest
income
|
117,044
|
|
112,749
|
|
100,265
|
|
90,623
|
|
96,656
|
Provision
for credit losses
|
9,023
|
|
7,689
|
|
2,629
|
|
(1,481)
|
|
(1,909)
|
Net interest income
after provision for credit losses
|
108,021
|
|
105,060
|
|
97,636
|
|
92,104
|
|
98,565
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
Loss on sale of
investments
|
(1)
|
|
(2)
|
|
(3)
|
|
(2)
|
|
(4)
|
Service charges and
fees
|
14,125
|
|
14,323
|
|
13,673
|
|
13,067
|
|
13,500
|
Trust and other
financial services income
|
6,642
|
|
6,650
|
|
7,461
|
|
7,012
|
|
6,820
|
Gain/(loss) on real
estate owned, net
|
51
|
|
290
|
|
291
|
|
(29)
|
|
71
|
Income from bank-owned
life insurance
|
1,663
|
|
1,475
|
|
2,008
|
|
1,983
|
|
1,343
|
Mortgage banking
income
|
477
|
|
766
|
|
2,157
|
|
1,465
|
|
2,120
|
Other operating
income
|
4,901
|
|
3,301
|
|
4,861
|
|
2,244
|
|
3,192
|
Total noninterest
income
|
27,858
|
|
26,803
|
|
30,448
|
|
25,740
|
|
27,042
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
46,658
|
|
46,711
|
|
48,073
|
|
46,917
|
|
48,691
|
Premises and occupancy
costs
|
7,370
|
|
7,171
|
|
7,280
|
|
7,797
|
|
7,104
|
Office
operations
|
3,544
|
|
3,229
|
|
3,162
|
|
3,383
|
|
3,144
|
Collections
expense
|
563
|
|
322
|
|
403
|
|
520
|
|
602
|
Processing
expenses
|
13,585
|
|
13,416
|
|
12,947
|
|
12,548
|
|
13,639
|
Marketing
expenses
|
2,773
|
|
2,147
|
|
2,047
|
|
2,128
|
|
2,054
|
Federal deposit
insurance premiums
|
1,319
|
|
1,200
|
|
1,130
|
|
1,129
|
|
1,131
|
Professional
services
|
5,434
|
|
3,363
|
|
3,333
|
|
2,573
|
|
4,513
|
Amortization of
intangible assets
|
932
|
|
1,047
|
|
1,115
|
|
1,183
|
|
1,205
|
Real estate owned
expense
|
53
|
|
61
|
|
72
|
|
37
|
|
44
|
Merger, asset
disposition and restructuring expense
|
4,243
|
|
—
|
|
—
|
|
1,374
|
|
2,812
|
Other
expenses
|
4,180
|
|
3,906
|
|
5,245
|
|
2,355
|
|
1,346
|
Total noninterest
expense
|
90,654
|
|
82,573
|
|
84,807
|
|
81,944
|
|
86,285
|
Income before income
taxes
|
45,225
|
|
49,290
|
|
43,277
|
|
35,900
|
|
39,322
|
Income tax
expense
|
10,576
|
|
11,986
|
|
9,851
|
|
7,613
|
|
9,266
|
Net income
|
$
34,649
|
|
37,304
|
|
33,426
|
|
28,287
|
|
30,056
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
0.27
|
|
0.29
|
|
0.26
|
|
0.22
|
|
0.24
|
Diluted earnings per
share
|
$
0.27
|
|
0.29
|
|
0.26
|
|
0.22
|
|
0.24
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average equity
|
9.38 %
|
|
9.84 %
|
|
8.90 %
|
|
7.17 %
|
|
7.65 %
|
Annualized return on
average assets
|
0.98 %
|
|
1.05 %
|
|
0.94 %
|
|
0.80 %
|
|
0.82 %
|
Annualized return on
tangible common equity *
|
12.48 %
|
|
13.84 %
|
|
12.16 %
|
|
10.14 %
|
|
10.02 %
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
**
|
58.99 %
|
|
58.42 %
|
|
64.03 %
|
|
68.22 %
|
|
66.51 %
|
Annualized noninterest
expense to average assets ***
|
2.43 %
|
|
2.30 %
|
|
2.35 %
|
|
2.23 %
|
|
2.25 %
|
*
|
Excludes goodwill and
other intangible assets (non-GAAP).
|
**
|
Excludes gain on sale
of insurance business, amortization of intangible assets and
merger, asset disposition and restructuring expenses
(non-GAAP).
|
***
|
Excludes amortization
of intangible assets and merger, asset disposition and
restructuring expenses (non-GAAP).
|
Northwest Bancshares, Inc. and
Subsidiaries
|
Consolidated
Statements of Income (Unaudited)
|
(dollars in
thousands, except per share amounts)
|
|
|
Year ended December
31,
|
|
2022
|
|
2021
|
Interest
income:
|
|
|
|
Loans
receivable
|
$
407,828
|
|
390,343
|
Mortgage-backed
securities
|
30,804
|
|
21,463
|
Taxable investment
securities
|
3,070
|
|
2,616
|
Tax-free investment
securities
|
2,767
|
|
2,485
|
FHLB stock
dividends
|
730
|
|
407
|
Interest-earning
deposits
|
3,599
|
|
1,194
|
Total interest
income
|
448,798
|
|
418,508
|
Interest
expense:
|
|
|
|
Deposits
|
14,120
|
|
19,122
|
Borrowed
funds
|
13,997
|
|
8,124
|
Total interest
expense
|
28,117
|
|
27,246
|
Net interest
income
|
420,681
|
|
391,262
|
Provision for credit
losses
|
17,860
|
|
(11,883)
|
Net interest income
after provision for credit losses
|
402,821
|
|
403,145
|
Noninterest
income:
|
|
|
|
Loss on sale of
investments
|
(8)
|
|
(176)
|
Service charges and
fees
|
55,188
|
|
51,837
|
Trust and other
financial services income
|
27,765
|
|
27,921
|
Insurance commission
income
|
—
|
|
3,633
|
Gain on real estate
owned, net
|
603
|
|
442
|
Income from bank-owned
life insurance
|
7,129
|
|
6,050
|
Mortgage banking
income
|
4,865
|
|
15,892
|
Gain on sale of
insurance business
|
—
|
|
25,327
|
Other operating
income
|
15,307
|
|
11,963
|
Total noninterest
income
|
110,849
|
|
142,889
|
Noninterest
expense:
|
|
|
|
Compensation and
employee benefits
|
188,359
|
|
193,887
|
Premises and occupancy
costs
|
29,618
|
|
31,073
|
Office
operations
|
13,318
|
|
13,769
|
Collections
expense
|
1,808
|
|
1,932
|
Processing
expenses
|
52,496
|
|
55,763
|
Marketing
expenses
|
9,095
|
|
8,237
|
Federal deposit
insurance premiums
|
4,778
|
|
4,975
|
Professional
services
|
14,703
|
|
17,621
|
Amortization of
intangible assets
|
4,277
|
|
5,553
|
Real estate owned
expense
|
223
|
|
298
|
Merger, asset
disposition and restructuring expense
|
5,617
|
|
3,453
|
Other
expenses
|
15,686
|
|
8,349
|
Total noninterest
expense
|
339,978
|
|
344,910
|
Income before income
taxes
|
173,692
|
|
201,124
|
Income tax
expense
|
40,026
|
|
46,801
|
Net income
|
$
133,666
|
|
154,323
|
|
|
|
|
Basic earnings per
share
|
$
1.05
|
|
1.22
|
Diluted earnings per
share
|
$
1.05
|
|
1.21
|
|
|
|
|
Return on average
equity
|
8.80 %
|
|
9.91 %
|
Return on average
assets
|
0.94 %
|
|
1.08 %
|
Return on tangible
common equity *
|
12.13 %
|
|
12.97 %
|
|
|
|
|
Efficiency ratio
**
|
62.10 %
|
|
66.02 %
|
Noninterest expense to
average assets ***
|
2.33 %
|
|
2.35 %
|
*
|
Excludes goodwill and
other intangible assets (non-GAAP).
|
**
|
Excludes gain on sale
of insurance business, amortization of intangible assets and
merger, asset disposition and restructuring expenses
(non-GAAP).
|
***
|
Excludes amortization
of intangible assets and merger, asset disposition and
restructuring expenses (non-GAAP).
|
Northwest Bancshares, Inc. and
Subsidiaries
|
Reconciliation of
Non-GAAP to GAAP Net Income (Unaudited) *
|
(dollars in
thousands, except per share amounts)
|
|
|
Quarter ended
December 31,
|
|
Year ended December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating results
(non-GAAP):
|
|
|
|
|
|
|
|
Net interest
income
|
$
117,044
|
|
96,656
|
|
420,681
|
|
391,262
|
Provision for credit
losses
|
9,023
|
|
(1,909)
|
|
17,860
|
|
(11,883)
|
Noninterest
income
|
27,858
|
|
27,042
|
|
110,849
|
|
117,562
|
Noninterest
expense
|
86,411
|
|
83,473
|
|
334,361
|
|
341,457
|
Income
taxes
|
11,764
|
|
10,053
|
|
41,599
|
|
40,676
|
Net operating income
(non-GAAP)
|
$
37,704
|
|
32,081
|
|
137,710
|
|
138,574
|
Diluted earnings per
share (non-GAAP)
|
$
0.30
|
|
0.25
|
|
1.08
|
|
1.08
|
|
|
|
|
|
|
|
|
Average
equity
|
$
1,465,285
|
|
1,559,627
|
|
1,518,704
|
|
1,557,582
|
Average
assets
|
13,983,100
|
|
14,474,091
|
|
14,177,698
|
|
14,308,334
|
Annualized return on
average equity (non-GAAP)
|
10.21 %
|
|
8.16 %
|
|
9.07 %
|
|
8.90 %
|
Annualized return on
average assets (non-GAAP)
|
1.07 %
|
|
0.88 %
|
|
0.97 %
|
|
0.97 %
|
|
|
|
|
|
|
|
|
Reconciliation of net
operating income to net income:
|
|
|
|
|
|
|
|
Net operating income
(non-GAAP)
|
$
37,704
|
|
32,081
|
|
137,710
|
|
138,574
|
Non-GAAP adjustments,
net of tax:
|
|
|
|
|
|
|
|
Gain on sale of
insurance business
|
—
|
|
—
|
|
—
|
|
18,235
|
Merger/asset
disposition expense
|
(3,055)
|
|
(2,025)
|
|
(4,044)
|
|
(2,486)
|
Net income
(GAAP)
|
$
34,649
|
|
30,056
|
|
133,666
|
|
154,323
|
Diluted earnings per
share (GAAP)
|
$
0.27
|
|
0.24
|
|
1.05
|
|
1.21
|
|
|
|
|
|
|
|
|
Annualized return on
average equity (GAAP)
|
9.38 %
|
|
7.65 %
|
|
8.80 %
|
|
9.91 %
|
Annualized return on
average assets (GAAP)
|
0.98 %
|
|
0.82 %
|
|
0.94 %
|
|
1.08 %
|
*
|
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 the gain on the sale of our insurance business and
merger, asset disposition and restructuring expense. The net tax
effect was calculated using statutory tax rates of approximately
28.0%. 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.
|
Northwest Bancshares, Inc. and
Subsidiaries
|
Asset Quality
(Unaudited)
|
(dollars in
thousands)
|
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
Nonaccrual loans
current:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
1,496
|
|
2,186
|
|
1,970
|
|
1,884
|
|
1,354
|
Home equity
loans
|
1,418
|
|
1,158
|
|
1,337
|
|
1,376
|
|
1,212
|
Consumer
loans
|
836
|
|
833
|
|
976
|
|
1,148
|
|
1,336
|
Commercial real estate
loans
|
53,303
|
|
56,193
|
|
60,537
|
|
79,810
|
|
106,233
|
Commercial
loans
|
895
|
|
1,801
|
|
5,270
|
|
6,060
|
|
6,098
|
Total nonaccrual loans
current
|
$
57,948
|
|
62,171
|
|
70,090
|
|
90,278
|
|
116,233
|
Nonaccrual loans
delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
473
|
|
54
|
|
2
|
|
760
|
|
244
|
Home equity
loans
|
180
|
|
316
|
|
172
|
|
195
|
|
223
|
Consumer
loans
|
178
|
|
155
|
|
158
|
|
190
|
|
241
|
Commercial real estate
loans
|
1,220
|
|
55
|
|
911
|
|
333
|
|
239
|
Commercial
loans
|
145
|
|
237
|
|
358
|
|
4
|
|
53
|
Total nonaccrual loans
delinquent 30 days to 59 days
|
$
2,196
|
|
817
|
|
1,601
|
|
1,482
|
|
1,000
|
Nonaccrual loans
delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
31
|
|
32
|
|
199
|
|
830
|
|
1,163
|
Home equity
loans
|
290
|
|
432
|
|
566
|
|
371
|
|
61
|
Consumer
loans
|
341
|
|
382
|
|
226
|
|
280
|
|
292
|
Commercial real estate
loans
|
473
|
|
848
|
|
630
|
|
—
|
|
364
|
Commercial
loans
|
96
|
|
132
|
|
73
|
|
—
|
|
218
|
Total nonaccrual loans
delinquent 60 days to 89 days
|
$
1,231
|
|
1,826
|
|
1,694
|
|
1,481
|
|
2,098
|
Nonaccrual loans
delinquent 90 days or more:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
5,574
|
|
5,544
|
|
5,445
|
|
3,976
|
|
7,641
|
Home equity
loans
|
2,257
|
|
1,779
|
|
2,081
|
|
2,968
|
|
4,262
|
Consumer
loans
|
2,672
|
|
2,031
|
|
1,942
|
|
1,782
|
|
2,069
|
Commercial real estate
loans
|
7,867
|
|
8,821
|
|
14,949
|
|
21,399
|
|
24,063
|
Commercial
loans
|
1,491
|
|
638
|
|
583
|
|
795
|
|
1,105
|
Total nonaccrual loans
delinquent 90 days or more
|
$
19,861
|
|
18,813
|
|
25,000
|
|
30,920
|
|
39,140
|
Total nonaccrual
loans
|
$
81,236
|
|
83,627
|
|
98,385
|
|
124,161
|
|
158,471
|
Total nonaccrual
loans
|
$
81,236
|
|
83,627
|
|
98,385
|
|
124,161
|
|
158,471
|
Loans 90 days past due
and still accruing
|
744
|
|
357
|
|
379
|
|
420
|
|
331
|
Nonperforming
loans
|
81,980
|
|
83,984
|
|
98,764
|
|
124,581
|
|
158,802
|
Real estate owned,
net
|
413
|
|
450
|
|
1,205
|
|
929
|
|
873
|
Nonperforming
assets
|
$
82,393
|
|
84,434
|
|
99,969
|
|
125,510
|
|
159,675
|
Nonaccrual troubled
debt restructuring *
|
$
29,239
|
|
30,406
|
|
37,647
|
|
16,015
|
|
17,216
|
Accruing troubled debt
restructuring
|
11,442
|
|
16,344
|
|
16,590
|
|
12,686
|
|
13,072
|
Total troubled debt
restructuring
|
$
40,681
|
|
46,750
|
|
54,237
|
|
28,701
|
|
30,288
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to
total loans
|
0.75 %
|
|
0.78 %
|
|
0.95 %
|
|
1.23 %
|
|
1.59 %
|
Nonperforming assets to
total assets
|
0.58 %
|
|
0.61 %
|
|
0.71 %
|
|
0.87 %
|
|
1.10 %
|
Allowance for credit
losses to total loans
|
1.08 %
|
|
1.02 %
|
|
0.94 %
|
|
0.98 %
|
|
1.02 %
|
Allowance for total
loans excluding PPP loan balances
|
1.08 %
|
|
1.02 %
|
|
0.95 %
|
|
0.98 %
|
|
1.03 %
|
Allowance for credit
losses to nonperforming loans
|
143.98 %
|
|
130.76 %
|
|
99.59 %
|
|
79.70 %
|
|
64.38 %
|
*
|
Amounts included in
nonperforming loans above.
|
Northwest Bancshares, Inc. and
Subsidiaries
|
Loans by
Credit Quality Indicators (Unaudited)
|
(dollars in
thousands)
|
|
At December 31,
2022
|
|
Pass
|
|
Special
mention
*
|
|
Substandard
**
|
|
Doubtful
|
|
Loss
|
|
Loans
receivable
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
3,484,870
|
|
—
|
|
13,729
|
|
—
|
|
—
|
|
3,498,599
|
Home equity
loans
|
|
1,292,146
|
|
—
|
|
5,528
|
|
—
|
|
—
|
|
1,297,674
|
Consumer
loans
|
|
2,164,220
|
|
—
|
|
4,435
|
|
—
|
|
—
|
|
2,168,655
|
Total Personal
Banking
|
|
6,941,236
|
|
—
|
|
23,692
|
|
—
|
|
—
|
|
6,964,928
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,579,809
|
|
55,076
|
|
188,670
|
|
—
|
|
—
|
|
2,823,555
|
Commercial
loans
|
|
1,100,707
|
|
7,384
|
|
23,878
|
|
—
|
|
—
|
|
1,131,969
|
Total Commercial
Banking
|
|
3,680,516
|
|
62,460
|
|
212,548
|
|
—
|
|
—
|
|
3,955,524
|
Total loans
|
|
$ 10,621,752
|
|
62,460
|
|
236,240
|
|
—
|
|
—
|
|
10,920,452
|
At September 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
3,388,168
|
|
—
|
|
13,730
|
|
—
|
|
—
|
|
3,401,898
|
Home equity
loans
|
|
1,279,968
|
|
—
|
|
5,021
|
|
—
|
|
—
|
|
1,284,989
|
Consumer
loans
|
|
2,112,478
|
|
—
|
|
3,760
|
|
—
|
|
—
|
|
2,116,238
|
Total Personal
Banking
|
|
6,780,614
|
|
—
|
|
22,511
|
|
—
|
|
—
|
|
6,803,125
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,589,648
|
|
34,684
|
|
188,498
|
|
—
|
|
—
|
|
2,812,830
|
Commercial
loans
|
|
1,094,830
|
|
4,004
|
|
26,736
|
|
—
|
|
—
|
|
1,125,570
|
Total Commercial
Banking
|
|
3,684,478
|
|
38,688
|
|
215,234
|
|
—
|
|
—
|
|
3,938,400
|
Total loans
|
|
$ 10,465,092
|
|
38,688
|
|
237,745
|
|
—
|
|
—
|
|
10,741,525
|
At June 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
3,273,117
|
|
—
|
|
13,658
|
|
—
|
|
—
|
|
3,286,775
|
Home equity
loans
|
|
1,275,124
|
|
—
|
|
5,368
|
|
—
|
|
—
|
|
1,280,492
|
Consumer
loans
|
|
1,998,863
|
|
—
|
|
3,682
|
|
—
|
|
—
|
|
2,002,545
|
Total Personal
Banking
|
|
6,547,104
|
|
—
|
|
22,708
|
|
—
|
|
—
|
|
6,569,812
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,600,207
|
|
51,540
|
|
224,429
|
|
—
|
|
—
|
|
2,876,176
|
Commercial
loans
|
|
954,129
|
|
2,468
|
|
30,239
|
|
—
|
|
—
|
|
986,836
|
Total Commercial
Banking
|
|
3,554,336
|
|
54,008
|
|
254,668
|
|
—
|
|
—
|
|
3,863,012
|
Total loans
|
|
$ 10,101,440
|
|
54,008
|
|
277,376
|
|
—
|
|
—
|
|
10,432,824
|
At March 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
3,108,366
|
|
—
|
|
13,523
|
|
—
|
|
—
|
|
3,121,889
|
Home equity
loans
|
|
1,280,342
|
|
—
|
|
6,178
|
|
—
|
|
—
|
|
1,286,520
|
Consumer
loans
|
|
1,892,162
|
|
—
|
|
3,819
|
|
—
|
|
—
|
|
1,895,981
|
Total Personal
Banking
|
|
6,280,870
|
|
—
|
|
23,520
|
|
—
|
|
—
|
|
6,304,390
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,633,808
|
|
62,091
|
|
263,994
|
|
—
|
|
—
|
|
2,959,893
|
Commercial
loans
|
|
839,125
|
|
3,277
|
|
32,349
|
|
—
|
|
—
|
|
874,751
|
Total Commercial
Banking
|
|
3,472,933
|
|
65,368
|
|
296,343
|
|
—
|
|
—
|
|
3,834,644
|
Total loans
|
|
$
9,753,803
|
|
65,368
|
|
319,863
|
|
—
|
|
—
|
|
10,139,034
|
At December 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
2,978,080
|
|
—
|
|
16,540
|
|
—
|
|
—
|
|
2,994,620
|
Home equity
loans
|
|
1,312,820
|
|
—
|
|
7,111
|
|
—
|
|
—
|
|
1,319,931
|
Consumer
loans
|
|
1,834,478
|
|
—
|
|
4,270
|
|
—
|
|
—
|
|
1,838,748
|
Total Personal
Banking
|
|
6,125,378
|
|
—
|
|
27,921
|
|
—
|
|
—
|
|
6,153,299
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans
|
|
2,639,676
|
|
74,123
|
|
301,685
|
|
—
|
|
—
|
|
3,015,484
|
Commercial
loans
|
|
808,323
|
|
5,730
|
|
33,556
|
|
—
|
|
—
|
|
847,609
|
Total Commercial
Banking
|
|
3,447,999
|
|
79,853
|
|
335,241
|
|
—
|
|
—
|
|
3,863,093
|
Total loans
|
|
$
9,573,377
|
|
79,853
|
|
363,162
|
|
—
|
|
—
|
|
10,016,392
|
*
|
Includes $7.4 million,
$4.5 million, $7.4 million, $4.4 million, and $14.9 million of
acquired loans at December 31, 2022, September 30, 2022, June 30,
2022, March 31, 2022, and December 31, 2021,
respectively.
|
**
|
Includes $39.1 million,
$51.4 million, $59.3 million, $71.9 million, and $81.5 million of
acquired loans at December 31, 2022, September 30, 2022, June 30,
2022, March 31, 2022, and December 31, 2021,
respectively.
|
Northwest Bancshares, Inc. and
Subsidiaries
|
Loan Delinquency
(Unaudited)
|
(dollars in
thousands)
|
|
|
December 31,
2022
|
|
*
|
|
September
30,
2022
|
|
*
|
|
June 30,
2022
|
|
*
|
|
March 31,
2022
|
|
*
|
|
December 31,
2021
|
|
*
|
(Number of loans and
dollar amount of loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 30
days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
304
|
|
$
29,487
|
|
0.8 %
|
|
26
|
|
$
1,052
|
|
— %
|
|
20
|
|
$ 785
|
|
— %
|
|
281
|
|
$
24,057
|
|
0.8 %
|
|
277
|
|
$
20,567
|
|
0.7 %
|
Home equity
loans
|
145
|
|
6,657
|
|
0.5 %
|
|
88
|
|
3,278
|
|
0.3 %
|
|
107
|
|
3,664
|
|
0.3 %
|
|
105
|
|
3,867
|
|
0.3 %
|
|
112
|
|
3,153
|
|
0.2 %
|
Consumer
loans
|
737
|
|
9,435
|
|
0.4 %
|
|
549
|
|
6,546
|
|
0.3 %
|
|
563
|
|
6,898
|
|
0.3 %
|
|
523
|
|
6,043
|
|
0.3 %
|
|
589
|
|
6,536
|
|
0.4 %
|
Commercial real estate
loans
|
29
|
|
4,008
|
|
0.1 %
|
|
13
|
|
1,332
|
|
— %
|
|
26
|
|
2,701
|
|
0.1 %
|
|
25
|
|
3,643
|
|
0.1 %
|
|
17
|
|
17,065
|
|
0.6 %
|
Commercial
loans
|
51
|
|
2,648
|
|
0.2 %
|
|
48
|
|
2,582
|
|
0.2 %
|
|
24
|
|
1,486
|
|
0.2 %
|
|
16
|
|
1,268
|
|
0.1 %
|
|
12
|
|
193
|
|
— %
|
Total loans delinquent
30 days to 59 days
|
1,266
|
|
$
52,235
|
|
0.5 %
|
|
724
|
|
$
14,790
|
|
0.1 %
|
|
740
|
|
$
15,534
|
|
0.1 %
|
|
950
|
|
$
38,878
|
|
0.4 %
|
|
1,007
|
|
$
47,514
|
|
0.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60
days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
65
|
|
$
5,563
|
|
0.2 %
|
|
51
|
|
$
4,320
|
|
0.1 %
|
|
61
|
|
$
5,941
|
|
0.2 %
|
|
24
|
|
$
1,950
|
|
0.1 %
|
|
59
|
|
$
5,433
|
|
0.2 %
|
Home equity
loans
|
29
|
|
975
|
|
0.1 %
|
|
36
|
|
1,227
|
|
0.1 %
|
|
28
|
|
952
|
|
0.1 %
|
|
28
|
|
1,138
|
|
0.1 %
|
|
30
|
|
949
|
|
0.1 %
|
Consumer
loans
|
255
|
|
3,070
|
|
0.1 %
|
|
223
|
|
2,663
|
|
0.1 %
|
|
178
|
|
1,460
|
|
0.1 %
|
|
159
|
|
1,839
|
|
0.1 %
|
|
195
|
|
2,006
|
|
0.1 %
|
Commercial real estate
loans
|
16
|
|
2,377
|
|
0.1 %
|
|
13
|
|
1,741
|
|
0.1 %
|
|
9
|
|
1,472
|
|
0.1 %
|
|
1
|
|
112
|
|
— %
|
|
5
|
|
769
|
|
— %
|
Commercial
loans
|
24
|
|
1,115
|
|
0.1 %
|
|
14
|
|
808
|
|
0.1 %
|
|
6
|
|
341
|
|
— %
|
|
3
|
|
103
|
|
— %
|
|
10
|
|
727
|
|
0.1 %
|
Total loans delinquent
60 days to 89 days
|
389
|
|
$
13,100
|
|
0.1 %
|
|
337
|
|
$
10,759
|
|
0.1 %
|
|
282
|
|
$
10,166
|
|
0.1 %
|
|
215
|
|
$
5,142
|
|
0.1 %
|
|
299
|
|
$
9,884
|
|
0.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90
days or more: **
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
65
|
|
$
5,574
|
|
0.2 %
|
|
64
|
|
$
5,544
|
|
0.2 %
|
|
63
|
|
$
5,445
|
|
0.2 %
|
|
47
|
|
$
3,976
|
|
0.1 %
|
|
87
|
|
$
7,641
|
|
0.3 %
|
Home equity
loans
|
68
|
|
2,257
|
|
0.2 %
|
|
65
|
|
1,779
|
|
0.1 %
|
|
69
|
|
2,081
|
|
0.2 %
|
|
91
|
|
2,968
|
|
0.2 %
|
|
105
|
|
4,262
|
|
0.3 %
|
Consumer
loans
|
334
|
|
3,079
|
|
0.1 %
|
|
289
|
|
2,388
|
|
0.1 %
|
|
286
|
|
2,321
|
|
0.1 %
|
|
287
|
|
2,202
|
|
0.1 %
|
|
296
|
|
2,400
|
|
0.1 %
|
Commercial real estate
loans
|
19
|
|
7,867
|
|
0.3 %
|
|
22
|
|
8,821
|
|
0.3 %
|
|
31
|
|
14,949
|
|
0.5 %
|
|
41
|
|
21,399
|
|
0.7 %
|
|
52
|
|
24,063
|
|
0.8 %
|
Commercial
loans
|
15
|
|
1,829
|
|
0.2 %
|
|
11
|
|
638
|
|
0.1 %
|
|
10
|
|
583
|
|
0.1 %
|
|
10
|
|
795
|
|
0.1 %
|
|
8
|
|
1,105
|
|
0.1 %
|
Total loans delinquent
90 days or more
|
501
|
|
$
20,606
|
|
0.2 %
|
|
451
|
|
$
19,170
|
|
0.2 %
|
|
459
|
|
$
25,379
|
|
0.2 %
|
|
476
|
|
$
31,340
|
|
0.3 %
|
|
548
|
|
$
39,471
|
|
0.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
delinquent
|
2,156
|
|
$
85,941
|
|
0.8 %
|
|
1,512
|
|
$
44,719
|
|
0.4 %
|
|
1,481
|
|
$
51,079
|
|
0.5 %
|
|
1,641
|
|
$
75,360
|
|
0.7 %
|
|
1,854
|
|
$
96,869
|
|
1.0 %
|
*
|
Represents delinquency,
in dollars, divided by the respective total amount of that type of
loan outstanding.
|
**
|
Includes purchased
credit deteriorated loans of $1.7 million, $783,000, $6.3 million,
$7.1 million, and $7.3 million at December 31, 2022, September 30,
2022, June 30, 2022, March 31, 2022, and December 31, 2021,
respectively.
|
Northwest Bancshares, Inc. and
Subsidiaries
|
Allowance for Credit
Losses (Unaudited)
|
(dollars in
thousands)
|
|
|
Quarter ended
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
Beginning
balance
|
$ 109,819
|
|
98,355
|
|
99,295
|
|
102,241
|
|
109,767
|
Provision
|
9,023
|
|
7,689
|
|
2,629
|
|
(1,481)
|
|
(1,909)
|
Charge-offs residential
mortgage
|
(546)
|
|
(166)
|
|
(138)
|
|
(1,183)
|
|
(784)
|
Charge-offs home
equity
|
(232)
|
|
(535)
|
|
(255)
|
|
(447)
|
|
(1,299)
|
Charge-offs
consumer
|
(2,430)
|
|
(2,341)
|
|
(1,912)
|
|
(1,723)
|
|
(2,897)
|
Charge-offs commercial
real estate
|
(621)
|
|
(1,329)
|
|
(4,392)
|
|
(1,024)
|
|
(2,652)
|
Charge-offs
commercial
|
(404)
|
|
(243)
|
|
(329)
|
|
(681)
|
|
(2,586)
|
Recoveries
|
3,427
|
|
8,389
|
|
3,457
|
|
3,593
|
|
4,601
|
Ending
balance
|
$ 118,036
|
|
109,819
|
|
98,355
|
|
99,295
|
|
102,241
|
Net
(recoveries)/charge-offs to average loans, annualized
|
0.03 %
|
|
(0.14) %
|
|
0.14 %
|
|
0.06 %
|
|
0.22 %
|
|
Year ended December
31,
|
|
2022
|
|
2021
|
Beginning
balance
|
$
102,241
|
|
134,427
|
Provision
|
17,860
|
|
(11,883)
|
Charge-offs residential
mortgage
|
(2,033)
|
|
(3,672)
|
Charge-offs home
equity
|
(1,469)
|
|
(3,380)
|
Charge-offs
consumer
|
(8,406)
|
|
(10,049)
|
Charge-offs commercial
real estate
|
(7,366)
|
|
(12,823)
|
Charge-offs
commercial
|
(1,657)
|
|
(4,213)
|
Recoveries
|
18,866
|
|
13,834
|
Ending
balance
|
$
118,036
|
|
102,241
|
Net charge-offs to
average loans
|
0.02 %
|
|
0.20 %
|
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
|
|
December 31,
2022
|
|
September 30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
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
|
$
3,439,401
|
|
30,974
|
|
3.60 %
|
|
$
3,331,173
|
|
29,414
|
|
3.53 %
|
|
$
3,171,469
|
|
27,327
|
|
3.45 %
|
|
$
2,980,788
|
|
25,542
|
|
3.43 %
|
|
$
2,977,942
|
|
25,269
|
|
3.39 %
|
Home equity
loans
|
1,282,733
|
|
15,264
|
|
4.72 %
|
|
1,274,918
|
|
13,658
|
|
4.25 %
|
|
1,277,440
|
|
11,961
|
|
3.76 %
|
|
1,293,986
|
|
11,472
|
|
3.60 %
|
|
1,328,553
|
|
11,750
|
|
3.51 %
|
Consumer
loans
|
2,069,207
|
|
19,709
|
|
3.78 %
|
|
1,981,754
|
|
17,256
|
|
3.45 %
|
|
1,880,769
|
|
15,777
|
|
3.36 %
|
|
1,799,037
|
|
14,907
|
|
3.36 %
|
|
1,756,620
|
|
15,514
|
|
3.50 %
|
Commercial real estate
loans
|
2,822,008
|
|
35,428
|
|
4.91 %
|
|
2,842,597
|
|
34,158
|
|
4.70 %
|
|
2,915,750
|
|
31,844
|
|
4.32 %
|
|
3,000,204
|
|
29,757
|
|
3.97 %
|
|
3,113,924
|
|
34,062
|
|
4.28 %
|
Commercial
loans
|
1,113,178
|
|
16,315
|
|
5.74 %
|
|
1,050,124
|
|
12,978
|
|
4.84 %
|
|
912,454
|
|
9,090
|
|
3.94 %
|
|
824,770
|
|
6,897
|
|
3.34 %
|
|
855,998
|
|
9,154
|
|
4.18 %
|
Total loans receivable
(a) (b) (d)
|
10,726,527
|
|
117,690
|
|
4.35 %
|
|
10,480,566
|
|
107,464
|
|
4.07 %
|
|
10,157,882
|
|
95,999
|
|
3.79 %
|
|
9,898,785
|
|
88,575
|
|
3.63 %
|
|
10,033,037
|
|
95,749
|
|
3.79 %
|
Mortgage-backed
securities (c)
|
1,956,167
|
|
8,603
|
|
1.76 %
|
|
2,019,715
|
|
8,683
|
|
1.72 %
|
|
1,952,375
|
|
7,158
|
|
1.47 %
|
|
1,945,173
|
|
6,360
|
|
1.31 %
|
|
1,894,683
|
|
5,743
|
|
1.21 %
|
Investment securities
(c) (d)
|
386,468
|
|
1,753
|
|
1.81 %
|
|
388,755
|
|
1,762
|
|
1.81 %
|
|
376,935
|
|
1,590
|
|
1.69 %
|
|
373,694
|
|
1,540
|
|
1.65 %
|
|
358,558
|
|
1,535
|
|
1.71 %
|
FHLB stock, at
cost
|
26,827
|
|
419
|
|
6.19 %
|
|
14,028
|
|
148
|
|
4.19 %
|
|
13,428
|
|
82
|
|
2.44 %
|
|
13,870
|
|
81
|
|
2.38 %
|
|
14,459
|
|
82
|
|
2.25 %
|
Other interest-earning
deposits
|
9,990
|
|
153
|
|
5.99 %
|
|
253,192
|
|
1,295
|
|
2.00 %
|
|
846,142
|
|
1,684
|
|
0.79 %
|
|
1,218,960
|
|
467
|
|
0.15 %
|
|
1,168,449
|
|
467
|
|
0.16 %
|
Total interest-earning
assets
|
13,105,979
|
|
128,618
|
|
3.89 %
|
|
13,156,256
|
|
119,352
|
|
3.60 %
|
|
13,346,762
|
|
106,513
|
|
3.20 %
|
|
13,450,482
|
|
97,023
|
|
2.93 %
|
|
13,469,186
|
|
103,576
|
|
3.05 %
|
Noninterest-earning
assets (e)
|
877,121
|
|
|
|
|
|
896,663
|
|
|
|
|
|
909,943
|
|
|
|
|
|
973,092
|
|
|
|
|
|
1,004,905
|
|
|
|
|
Total assets
|
$
13,983,100
|
|
|
|
|
|
$
14,052,919
|
|
|
|
|
|
$
14,256,705
|
|
|
|
|
|
$
14,423,574
|
|
|
|
|
|
$
14,474,091
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
deposits
|
$
2,298,451
|
|
585
|
|
0.10 %
|
|
$
2,350,248
|
|
594
|
|
0.10 %
|
|
$
2,361,919
|
|
589
|
|
0.10 %
|
|
$
2,334,494
|
|
592
|
|
0.10 %
|
|
$
2,282,606
|
|
622
|
|
0.11 %
|
Interest-bearing
demand deposits
|
2,718,360
|
|
509
|
|
0.07 %
|
|
2,794,338
|
|
360
|
|
0.05 %
|
|
2,857,336
|
|
310
|
|
0.04 %
|
|
2,875,430
|
|
321
|
|
0.05 %
|
|
2,933,466
|
|
411
|
|
0.06 %
|
Money market deposit
accounts
|
2,512,892
|
|
1,310
|
|
0.21 %
|
|
2,620,850
|
|
692
|
|
0.10 %
|
|
2,653,467
|
|
668
|
|
0.10 %
|
|
2,668,105
|
|
653
|
|
0.10 %
|
|
2,618,177
|
|
656
|
|
0.10 %
|
Time
deposits
|
1,024,895
|
|
1,467
|
|
0.57 %
|
|
1,110,906
|
|
1,511
|
|
0.54 %
|
|
1,220,815
|
|
1,774
|
|
0.58 %
|
|
1,292,608
|
|
2,185
|
|
0.69 %
|
|
1,356,513
|
|
2,606
|
|
0.76 %
|
Borrowed funds
(f)
|
451,369
|
|
3,967
|
|
3.49 %
|
|
127,073
|
|
239
|
|
0.75 %
|
|
123,749
|
|
167
|
|
0.54 %
|
|
135,289
|
|
158
|
|
0.47 %
|
|
135,038
|
|
159
|
|
0.47 %
|
Subordinated
debt
|
113,783
|
|
1,148
|
|
4.04 %
|
|
113,695
|
|
1,149
|
|
4.04 %
|
|
119,563
|
|
1,203
|
|
4.03 %
|
|
123,608
|
|
1,250
|
|
4.05 %
|
|
123,514
|
|
1,180
|
|
3.82 %
|
Junior subordinated
debentures
|
129,271
|
|
1,823
|
|
5.52 %
|
|
129,207
|
|
1,322
|
|
4.00 %
|
|
129,142
|
|
920
|
|
2.82 %
|
|
129,077
|
|
651
|
|
2.02 %
|
|
129,012
|
|
625
|
|
1.89 %
|
Total interest-bearing
liabilities
|
9,249,021
|
|
10,809
|
|
0.46 %
|
|
9,246,317
|
|
5,867
|
|
0.25 %
|
|
9,465,991
|
|
5,631
|
|
0.24 %
|
|
9,558,611
|
|
5,810
|
|
0.25 %
|
|
9,578,326
|
|
6,259
|
|
0.26 %
|
Noninterest-bearing
demand deposits (g)
|
3,039,000
|
|
|
|
|
|
3,093,490
|
|
|
|
|
|
3,090,372
|
|
|
|
|
|
3,060,698
|
|
|
|
|
|
3,093,518
|
|
|
|
|
Noninterest-bearing
liabilities
|
229,794
|
|
|
|
|
|
209,486
|
|
|
|
|
|
193,510
|
|
|
|
|
|
203,537
|
|
|
|
|
|
242,620
|
|
|
|
|
Total
liabilities
|
12,517,815
|
|
|
|
|
|
12,549,293
|
|
|
|
|
|
12,749,873
|
|
|
|
|
|
12,822,846
|
|
|
|
|
|
12,914,464
|
|
|
|
|
Shareholders'
equity
|
1,465,285
|
|
|
|
|
|
1,503,626
|
|
|
|
|
|
1,506,832
|
|
|
|
|
|
1,600,728
|
|
|
|
|
|
1,559,627
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
13,983,100
|
|
|
|
|
|
$
14,052,919
|
|
|
|
|
|
$
14,256,705
|
|
|
|
|
|
$
14,423,574
|
|
|
|
|
|
$
14,474,091
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
117,809
|
|
3.43 %
|
|
|
|
113,485
|
|
3.35 %
|
|
|
|
100,882
|
|
2.96 %
|
|
|
|
91,213
|
|
2.68 %
|
|
|
|
97,317
|
|
2.79 %
|
Net interest-earning
assets/Net interest margin
|
$
3,856,958
|
|
|
|
3.57 %
|
|
$
3,909,939
|
|
|
|
3.42 %
|
|
$
3,880,771
|
|
|
|
3.07 %
|
|
$
3,891,871
|
|
|
|
2.75 %
|
|
$
3,890,860
|
|
|
|
2.89 %
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.42X
|
|
|
|
|
|
1.42X
|
|
|
|
|
|
1.41X
|
|
|
|
|
|
1.41X
|
|
|
|
|
|
1.41X
|
|
|
|
|
|
|
(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 0.13%, 0.11%, 0.11%, 0.12%, and 0.14%,
respectively.
|
(h)
|
Shown on a FTE basis.
GAAP basis yields for the periods indicated were: Loans — 4.33%,
4.05%, 3.77%, 3.61%, and 3.77%, respectively, Investment
securities — 1.59%, 1.59%, 1.48%, 1.45%, and 1.48%,
respectively, Interest-earning assets — 3.87%, 3.58%,
3.18%, 2.91%, and 3.03%, respectively. GAAP basis net interest rate
spreads were 3.41%, 3.33%, 2.94%, 2.66%, and 2.77%, respectively,
and GAAP basis net interest margins were 3.54%, 3.40%, 3.05%,
2.73%, and 2.87%, respectively.
|
Northwest Bancshares, Inc. and
Subsidiaries
|
Average Balance
Sheet (Unaudited)
|
(in
thousands)
|
|
The following table
sets forth certain information relating to the Company's average
balance sheet and reflects the average yield on interest-earning
assets and average cost of interest-bearing liabilities for the
periods indicated.
Such yields and costs are derived by dividing income or expense by
the average balance of assets or liabilities, respectively, for the
periods presented. Average balances are calculated using
daily averages.
|
|
|
Year ended December
31,
|
|
2022
|
|
2021
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$ 3,232,487
|
|
113,256
|
|
3.50 %
|
|
$ 2,969,939
|
|
102,642
|
|
3.46 %
|
Home equity
loans
|
1,282,218
|
|
52,707
|
|
4.11 %
|
|
1,374,038
|
|
48,789
|
|
3.55 %
|
Consumer
loans
|
1,933,557
|
|
67,296
|
|
3.48 %
|
|
1,635,613
|
|
60,854
|
|
3.72 %
|
Commercial real estate
loans
|
2,894,508
|
|
131,230
|
|
4.47 %
|
|
3,222,272
|
|
141,186
|
|
4.32 %
|
Commercial
loans
|
976,128
|
|
45,293
|
|
4.58 %
|
|
1,037,758
|
|
38,794
|
|
3.69 %
|
Loans receivable
(a) (b) (d)
|
10,318,898
|
|
409,782
|
|
3.97 %
|
|
10,239,620
|
|
392,265
|
|
3.83 %
|
Mortgage-backed
securities (c)
|
1,968,528
|
|
30,804
|
|
1.56 %
|
|
1,704,006
|
|
21,463
|
|
1.26 %
|
Investment securities
(c) (d)
|
381,518
|
|
6,671
|
|
1.75 %
|
|
350,806
|
|
5,848
|
|
1.67 %
|
FHLB stock, at
cost
|
17,065
|
|
730
|
|
4.27 %
|
|
20,229
|
|
407
|
|
2.01 %
|
Other interest-earning
deposits
|
567,609
|
|
3,599
|
|
0.63 %
|
|
921,360
|
|
1,194
|
|
0.13 %
|
Total interest-earning
assets
|
13,253,618
|
|
451,586
|
|
3.41 %
|
|
13,236,021
|
|
421,177
|
|
3.18 %
|
Noninterest-earning
assets (e)
|
924,080
|
|
|
|
|
|
1,072,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
14,177,698
|
|
|
|
|
|
$
14,308,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings
deposits
|
$ 2,336,217
|
|
2,343
|
|
0.10 %
|
|
$ 2,232,454
|
|
2,440
|
|
0.11 %
|
Interest-bearing
demand deposits
|
2,810,889
|
|
1,517
|
|
0.05 %
|
|
2,862,677
|
|
1,660
|
|
0.06 %
|
Money market deposit
accounts
|
2,613,422
|
|
3,377
|
|
0.13 %
|
|
2,554,975
|
|
2,570
|
|
0.10 %
|
Time
deposits
|
1,161,432
|
|
6,883
|
|
0.59 %
|
|
1,463,522
|
|
12,452
|
|
0.85 %
|
Borrowed funds
(f)
|
212,026
|
|
4,531
|
|
2.14 %
|
|
135,285
|
|
616
|
|
0.46 %
|
Subordinated
debt
|
117,625
|
|
4,750
|
|
4.04 %
|
|
123,457
|
|
4,980
|
|
4.03 %
|
Junior subordinated
debentures
|
129,175
|
|
4,716
|
|
3.60 %
|
|
128,915
|
|
2,528
|
|
1.93 %
|
Total interest-bearing
liabilities
|
9,380,786
|
|
28,117
|
|
0.30 %
|
|
9,501,285
|
|
27,246
|
|
0.29 %
|
Noninterest-bearing
demand deposits (g)
|
3,070,892
|
|
|
|
|
|
2,999,392
|
|
|
|
|
Noninterest-bearing
liabilities
|
207,316
|
|
|
|
|
|
250,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
12,658,994
|
|
|
|
|
|
12,750,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
1,518,704
|
|
|
|
|
|
1,557,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
14,177,698
|
|
|
|
|
|
$
14,308,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/Interest rate spread
|
|
|
423,469
|
|
3.11 %
|
|
|
|
393,931
|
|
2.89 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets/Net interest margin
|
$ 3,872,832
|
|
|
|
3.20 %
|
|
$ 3,734,736
|
|
|
|
2.98 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.41X
|
|
|
|
|
|
1.39X
|
|
|
|
|
|
|
(a)
|
Average gross loans
receivable includes loans held as available-for-sale and loans
placed on nonaccrual status.
|
(b)
|
Interest income
includes accretion/amortization of deferred loan fees/expenses,
which 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 0.12% and 0.16%, respectively.
|
(h)
|
Shown on a FTE basis.
GAAP basis yields were: Loans — 3.95% and 3.81%, respectively;
Investment securities — 1.53% and 1.45%, respectively;
Interest-earning assets — 3.39% and 3.16%, respectively.
GAAP basis net interest rate spreads were 3.09% and 2.88%,
respectively; and GAAP basis net interest margins were 3.17% and
2.96%, respectively.
|
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SOURCE Northwest Bancshares, Inc.