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Northwest Bancshares, Inc. Announces Second Quarter 2019 Earnings and Quarterly Dividend

Company Release - 7/22/2019 9:00 AM ET

WARREN, Pa., July 22, 2019 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended June 30, 2019 of $26.4 million, or $0.25 per diluted share. This represents an increase of $84,000, or 0.3%, compared to the same quarter last year when net income was $26.3 million or $0.25 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended June 30, 2019 were 8.01% and 1.02% compared to 8.67% and 1.11% for the same quarter last year.

Northwest Bank (PRNewsfoto/Northwest Bank)

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.18 per share payable on August 15, 2019 to shareholders of record as of August 1, 2019. This is the 99th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's stock as of June 30, 2019, this represents an annualized dividend yield of approximately 4.09%.

In making this announcement, Ronald J. Seiffert, Chairman, President and CEO, noted, "We were extremely pleased with loan growth for both the current quarter of 1.9% and for the first six months of the year of 3.5%." Mr. Seiffert added that "despite the expected six basis point decline in our net interest margin during the quarter due to the shape of the yield curve, we believe it is very important to continue to grow and diversify our loan portfolio."  He continued, "As the result of strategic investments that we made during the first half of this year, we are extremely well-positioned to focus on sales execution and operating efficiencies for the remainder of 2019. These investments included the successful integration of Union Community Bank, the implementation of nCino as our new commercial loan origination platform and Ellie Mae's Encompass as our new residential mortgage loan origination platform, as well as the staffing of our commercial and residential mortgage loan origination teams."

Net interest income increased by $8.4 million, or 10.0%, to $92.6 million for the quarter ended June 30, 2019, from $84.2 million for the quarter ended June 30, 2018, primarily due to a $12.8 million, or 14.5%, increase in interest income on loans receivable and a $1.0 million, or 31.5%, increase in interest income on mortgage-backed securities. These increases were primarily due to increases of $743.4 million, or 9.5%, and $75.0 million, or 13.2%, in the average balances of loans and mortgage-backed securities, respectively.  Additionally, the average yield on loans and mortgage-backed securities increased by 21 and 37 basis points, respectively, over the prior year period. Partially offsetting this improvement was an increase in interest expense on deposits of $5.2 million, or 70.8%, due to increases in market interest rates that have occurred over the past year. The net impact of these changes caused the Company's net interest margin to increase to 3.91% for the quarter ended June 30, 2019 from 3.86% for the same quarter last year.

The provision for loan losses decreased by $682,000, or 12.8%, to $4.7 million for the quarter ended June 30, 2019, from $5.3 million for the quarter ended June 30, 2018. The provision was elevated in the prior year due primarily to the closure of the Company's consumer finance subsidiary and the runoff of the legacy portfolio.  During the current quarter, net charge-offs were elevated due to an additional write down of approximately $4.0 million on a residential land development loan in our Western New York region.  This write down was previously fully reserved.

Noninterest income decreased by $746,000, or 3.1%, to $23.4 million for the quarter ended June 30, 2019, from $24.1 million for the quarter ended June 30, 2018. This decrease was primarily due to a $1.1 million, or 48.7%, decline in bank owned life insurance income due to a death benefit received during the prior year.  Partially offsetting this decline was an increase in service charges and fees of $431,000, or 3.3%, to $13.3 million for the current quarter compared to $12.9 million for the prior year's quarter, primarily as a result of increased customer activity from the United Community Bank ("UCB") acquisition.  Additionally, there was an increase in trust and other financial services income of $394,000, or 9.7%, to $4.4 million for the quarter ended June 30, 2019, from $4.0 million for the same quarter last year primarily due to new brokerage production.

Noninterest expense increased by $7.7 million, or 11.1%, to $77.5 million for the quarter ended June 30, 2019, from $69.8 million for the quarter ended June 30, 2018. This increase resulted primarily from a $3.0 million, or 7.6%, increase in compensation and employee benefits due to both internal growth in compensation and staff as well as the addition of UCB employees. In addition, processing expenses increased by $1.1 million, or 11.2%, as we continue to invest in technology and infrastructure to meet the demands of becoming a $10.0 billion institution. Also contributing to this increase was an increase in restructuring and acquisition expense of $712,000 due to expenses incurred as part of the UCB acquisition.

Net income for the six month period ended June 30, 2019 was $51.4 million, or $0.49 per diluted share.  This represents an increase of $143,000, or 0.3%, compared to the six month period ended June 30, 2018, when net income was $51.3 million, or $0.50 per diluted share.  The annualized returns on average shareholders' equity and average assets for the six month period ended June 30, 2019 were 7.99% and 1.02% compared to 8.54% and 1.09% for the same period last year.  This increase in net income was the result of an increase in net interest income after provision of $13.0 million, or 8.3% which was partially offset by an increase in noninterest expense of $11.7 million, or 8.5%.  Contributing to the additional expense is the added cost of the Union Community Bank operations, including new marketing costs, additional processing costs associated with our new commercial and residential mortgage platforms as well as increased online banking usage fees, and the acquisition costs associated with the Union Community Bank conversion in March 2019.

Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. Northwest operates 172 full-service community banking offices and ten free standing drive-through facilities in Pennsylvania, New York and Ohio. Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.

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

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(Dollars in thousands, except per share amounts)



June 30,

 2019


December 31,

 2018


June 30,

 2018

Assets






Cash and cash equivalents

$

106,988



68,789



133,045


Marketable securities available-for-sale (amortized cost of $850,248, $811,015 and $814,848, respectively)

854,765



801,450



799,878


Marketable securities held-to-maturity (fair value of $20,676, $22,446 and $25,212, respectively)

20,414



22,765



25,747


Total cash and cash equivalents and marketable securities

982,167



893,004



958,670








Residential mortgage loans

2,899,164



2,864,470



2,800,668


Home equity loans

1,314,947



1,258,422



1,276,181


Consumer loans

1,011,424



859,713



700,925


Commercial real estate loans

2,808,153



2,471,821



2,553,223


Commercial loans

703,194



597,013



611,373


Total loans receivable

8,736,882



8,051,439



7,942,370


Allowance for loan losses

(53,107)



(55,214)



(57,332)


Loans receivable, net

8,683,775



7,996,225



7,885,038








Federal Home Loan Bank stock, at cost

14,966



15,635



7,887


Accrued interest receivable

28,742



24,490



24,959


Real estate owned, net

2,070



2,498



2,722


Premises and equipment, net

148,973



143,390



146,276


Bank owned life insurance

186,870



171,079



170,791


Goodwill

344,720



307,420



307,420


Other intangible assets

24,112



19,821



22,629


Other assets

89,088



34,211



35,917


Total assets

$

10,505,483



9,607,773



9,562,309








Liabilities and shareholders' equity






Liabilities






Noninterest-bearing demand deposits

$

1,944,550



1,736,156



1,732,664


Interest-bearing demand deposits

1,670,983



1,455,460



1,485,938


Money market deposit accounts

1,784,437



1,661,623



1,686,052


Savings deposits

1,683,551



1,636,099



1,697,396


Time deposits

1,600,372



1,404,841



1,405,328


Total deposits

8,683,893



7,894,179



8,007,378








Borrowed funds

171,677



234,389



99,889


Advances by borrowers for taxes and insurance

54,507



43,298



51,640


Accrued interest payable

1,207



744



568


Other liabilities

138,854



66,312



62,741


Junior subordinated debentures

121,757



111,213



111,213


Total liabilities

9,171,895



8,350,135



8,333,429








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, 106,614,607, 103,354,030, and 103,122,890 shares issued and outstanding, respectively

1,066



1,034



1,031


Paid-in-capital

798,942



745,926



739,673


Retained earnings

562,799



550,374



531,269


Accumulated other comprehensive loss

(29,219)



(39,696)



(43,093)


Total shareholders' equity

1,333,588



1,257,638



1,228,880


Total liabilities and shareholders' equity

$

10,505,483




9,607,773




9,562,309








Equity to assets

12.69

%


13.09

%


12.85

%

Tangible common equity to assets

9.52

%


10.03

%


9.74

%

Book value per share

$

12.51



12.17



11.92


Tangible book value per share

$

9.05



9.00



8.72


Closing market price per share

$

17.61



16.94



17.39


Full time equivalent employees

2,238



2,128



2,118


Number of banking offices

182



172



172


 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share amounts)



Quarter ended


June 30,


March 31,


December 31,


September 30,


June 30,


2019


2019


2018


2018


2018

Interest income:










Loans receivable

$

100,917



94,935



92,512



90,733



88,106


Mortgage-backed securities

4,280



3,965



3,942



3,572



3,254


Taxable investment securities

898



936



924



814



648


Tax-free investment securities

237



182



170



205



313


FHLB dividends

316



171



151



119



85


Interest-earning deposits

159



100



69



162



469


Total interest income

106,807



100,289



97,768



95,605



92,875












Interest expense:










Deposits

12,484



10,145



8,985



8,233



7,309


Borrowed funds

1,720



2,162



1,952



1,555



1,340


Total interest expense

14,204



12,307



10,937



9,788



8,649












Net interest income

92,603



87,982



86,831



85,817



84,226


Provision for loan losses

4,667



6,467



3,792



6,982



5,349


Net interest income after provision for loan losses

87,936



81,515



83,039



78,835



78,877












Noninterest income:










Gain/(loss) on sale of investments

29



(6)



4






Service charges and fees

13,339



12,043



12,827



13,158



12,908


Trust and other financial services income

4,444



4,195



4,246



4,254



4,050


Insurance commission income

2,145



2,178



1,906



2,046



2,090


Gain/(loss) on real estate owned, net

91



(3)



(14)



(247)



176


Income from bank owned life insurance

1,197



1,005



1,038



1,460



2,333


Mortgage banking income

188



216



213



82



77


Other operating income

1,930



2,034



3,028



1,804



2,475


Total noninterest income

23,363



21,662



23,248



22,557



24,109












Noninterest expense:










Compensation and employee benefits

42,008



38,188



39,319



37,535



39,031


Premises and occupancy costs

7,387



7,218



6,567



6,821



6,824


Office operations

3,708



3,131



3,455



3,508



3,768


Collections expense

939



308



780



483



434


Processing expenses

10,634



10,434



10,160



9,620



9,560


Marketing expenses

2,729



1,886



2,331



1,949



2,014


Federal deposit insurance premiums

681



706



637



721



671


Professional services

3,198



2,524



3,134



2,368



2,819


Amortization of intangible assets

1,760



1,447



1,346



1,462



1,520


Real estate owned expense

128



159



187



205



133


Restructuring/acquisition expense

1,105



1,926



435



186



393


Other expense

3,235



3,497



3,922



1,759



2,620


Total noninterest expense

77,512



71,424



72,273



66,617



69,787


Income before income taxes

33,787



31,753



34,014



34,775



33,199












Income tax expense

7,404



6,709



7,547



7,035



6,900


Net income

$

26,383



25,044



26,467



27,740



26,299












Basic earnings per share

$

0.25



0.24



0.26



0.27



0.26


Diluted earnings per share

$

0.25



0.24



0.26



0.27



0.25












Weighted average common shares outstanding - basic


105,233,635




103,101,789




102,479,086




102,334,954




101,870,043


Weighted average common shares outstanding - diluted


106,258,215




104,496,592




103,749,383




103,942,695




103,424,154












Annualized return on average equity

8.01

%


7.96

%


8.44

%


8.93

%


8.67

%

Annualized return on average assets

1.02

%


1.03

%


1.09

%


1.15

%


1.11

%

Annualized return on tangible common equity

10.97

%


10.74

%


11.29

%


12.07

%


11.74

%











Efficiency ratio *

64.37

%


62.07

%


64.04

%


59.95

%


62.65

%

Annualized noninterest expense to average assets *

2.88

%


2.79

%


2.91

%


2.70

%


2.87

%

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

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share amounts)



Six months ended June 30,


2019


2018

Interest income:




Loans receivable

$

195,852



173,326


Mortgage-backed securities

8,245



6,267


Taxable investment securities

1,834



1,326


Tax-free investment securities

419



703


FHLB dividends

487



182


Interest-earning deposits

259



604


Total interest income

207,096



182,408






Interest expense:




Deposits

22,629



13,767


Borrowed funds

3,882



2,648


Total interest expense

26,511



16,415






Net interest income

180,585



165,993


Provision for loan losses

11,134



9,558


Net interest income after provision for loan losses

169,451



156,435






Noninterest income:




Gain on sale of investments

23



153


Service charges and fees

25,382



24,807


Trust and other financial services income

8,639



8,081


Insurance commission income

4,323



4,839


Gain/(loss) on real estate owned, net

88



(370)


Income from bank owned life insurance

2,202



3,323


Mortgage banking income

404



301


Other operating income

3,964



4,763


Total noninterest income

45,025



45,897






Noninterest expense:




Compensation and employee benefits

80,196



75,541


Premises and occupancy costs

14,605



14,131


Office operations

6,839



7,176


Collections expense

1,247



946


Processing expenses

21,068



19,266


Marketing expenses

4,615



4,154


Federal deposit insurance premiums

1,387



1,388


Professional services

5,722



5,096


Amortization of intangible assets

3,207



3,040


Real estate owned expense

287



425


Restructuring/acquisition expense

3,031



393


Other expense

6,732



5,652


Total noninterest expense

148,936



137,208


Income before income taxes

65,540



65,124






Income tax expense

14,113



13,840


Net income

$

51,427



51,284






Basic earnings per share

$

0.49



0.50


Diluted earnings per share

$

0.49



0.50






Weighted average common shares outstanding - basic


104,173,601




101,735,235


Weighted average common shares outstanding - diluted

105,382,270




103,281,120






Annualized return on average equity

7.99

%


8.54

%

Annualized return on average assets

1.02

%


1.09

%

Annualized return on tangible common equity

10.75

%


11.51

%





Efficiency ratio *

63.25

%


63.13

%

Annualized noninterest expense to average assets *

2.84

%


2.85

%

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

 

Northwest Bancshares, Inc. and Subsidiaries

Asset quality (Unaudited)

(Dollars in thousands)



June 30,

 2019


March 31,

 2019


December 31,

 2018


September 30,
 2018


June 30,
 2018

Nonaccrual loans current:










Residential mortgage loans

$

432



124



264



869



669


Home equity loans

475



643



437



496



237


Consumer loans

94



76



196



126



218


Commercial real estate loans

12,605



10,520



9,947



10,905



14,814


Commercial loans

5,666



4,277



4,736



1,972



2,559


Total nonaccrual loans current

$

19,272



15,640



15,580



14,368



18,497












Nonaccrual loans delinquent 30 days to 59 days:










Residential mortgage loans

$

13



824



1,358



15



89


Home equity loans

418



160



266



333



221


Consumer loans

172



154



294



182



192


Commercial real estate loans

469



2,642



219



3,124



522


Commercial loans

45



321



23



150



51


Total nonaccrual loans delinquent 30 days to 59 days

$

1,117



4,101



2,160



3,804



1,075












Nonaccrual loans delinquent 60 days to 89 days:










Residential mortgage loans

$

910



1,323



1,262



547



668


Home equity loans

717



954



376



418



483


Consumer loans

322



683



582



464



194


Commercial real estate loans

1,426



3,588



1,260



1,872



1,682


Commercial loans

780



397



332



352



380


Total nonaccrual loans delinquent 60 days to 89 days

$

4,155



6,945



3,812



3,653



3,407












Nonaccrual loans delinquent 90 days or more:










Residential mortgage loans

$

10,617



10,781



12,965



13,154



11,822


Home equity loans

5,591



5,542



5,996



5,838



6,729


Consumer finance loans

10





22



39



15


Consumer loans

2,892



3,215



3,228



3,535



2,626


Commercial real estate loans

21,123



24,528



25,509



27,122



15,617


Commercial loans

2,920



2,027



3,010



2,714



2,925


Total nonaccrual loans delinquent 90 days or more

$

43,153



46,093



50,730



52,402



39,734












Total nonaccrual loans

$

67,697



72,779



72,282



74,227



62,713












Total nonaccrual loans

$

67,697



72,779



72,282



74,227



62,713


Loans 90 days past maturity and still accruing

55



166



166



195



94


Nonperforming loans

67,752



72,945



72,448



74,422



62,807


Real estate owned, net

2,070



2,345



2,498



2,486



2,722


Nonperforming assets

$

69,822



75,290



74,946



76,908



65,529












Nonaccrual troubled debt restructuring *

$

13,375



14,951



15,306



9,777



10,860


Accruing troubled debt restructuring

17,894



17,861



18,302



19,370



19,802


Total troubled debt restructuring

$

31,269



32,812



33,608



29,147



30,662












Nonperforming loans to total loans

0.78

%


0.85

%


0.90

%


0.93

%


0.79

%

Nonperforming assets to total assets

0.66

%


0.73

%


0.78

%


0.80

%


0.69

%

Allowance for loan losses to total loans

0.61

%


0.65

%


0.69

%


0.70

%


0.72

%

Allowance for loan losses to nonperforming loans

78.38

%


76.39

%


76.21

%


75.21

%


91.28

%

* Amounts included in nonperforming loans above.















 


Northwest Bancshares, Inc. and Subsidiaries

Loans by credit quality indicators (Unaudited)

(Dollars in thousands)


At June 30, 2019


Pass


Special
mention *


Substandard
**


Doubtful


Loss


Loans

receivable

Personal Banking:













Residential mortgage loans


$

2,890,472





8,692







2,899,164


Home equity loans


1,307,887





7,060







1,314,947


Consumer loans


1,007,813





3,611







1,011,424


Total Personal Banking


5,206,172





19,363







5,225,535


Commercial Banking:













Commercial real estate loans


2,586,013



86,434



135,525



181





2,808,153


Commercial loans


621,889



38,182



42,141



982





703,194


Total Commercial Banking


3,207,902



124,616



177,666



1,163





3,511,347


Total loans


$

8,414,074



124,616



197,029



1,163





8,736,882















At March 31, 2019













Personal Banking:













Residential mortgage loans


$

2,858,007





9,154







2,867,161


Home equity loans


1,317,323





7,082







1,324,405


Consumer loans


926,832





4,230







931,062


Total Personal Banking


5,102,162





20,466







5,122,628


Commercial Banking:













Commercial real estate loans


2,577,176



87,053



135,080







2,799,309


Commercial loans


573,160



34,610



40,168







647,938


Total Commercial Banking


3,150,336



121,663



175,248







3,447,247


Total loans


$

8,252,498



121,663



195,714







8,569,875















At December 31, 2018













Personal Banking:













Residential mortgage loans


$

2,853,460





11,010







2,864,470


Home equity loans


1,251,518





6,904







1,258,422


Consumer loans


855,277





4,436







859,713


Total Personal Banking


4,960,255





22,350







4,982,605


Commercial Banking:













Commercial real estate loans


2,254,350



94,688



122,783







2,471,821


Commercial loans


538,762



19,281



38,970







597,013


Total Commercial Banking


2,793,112



113,969



161,753







3,068,834


Total loans


$

7,753,367



113,969



184,103







8,051,439















At September 30, 2018













Personal Banking:













Residential mortgage loans


$

2,835,806





11,028







2,846,834


Home equity loans


1,265,237





7,108







1,272,345


Consumer loans


771,555





4,494







776,049


Total Personal Banking


4,872,598





22,630







4,895,228


Commercial Banking:













Commercial real estate loans


2,283,152



53,529



181,385







2,518,066


Commercial loans


526,584



24,760



31,424







582,768


Total Commercial Banking


2,809,736



78,289



212,809







3,100,834


Total loans


$

7,682,334



78,289



235,439







7,996,062















At June 30, 2018













Personal Banking:













Residential mortgage loans


$

2,790,906





9,762







2,800,668


Home equity loans


1,268,884





7,297







1,276,181


Consumer loans


697,561





3,364







700,925


Total Personal Banking


4,757,351





20,423







4,777,774


Commercial Banking:













Commercial real estate loans


2,294,327



65,698



193,198







2,553,223


Commercial loans


554,495



18,140



38,738







611,373


Total Commercial Banking


2,848,822



83,838



231,936







3,164,596



Total loans


$

7,606,173



83,838



252,359







7,942,370


*

Includes $8.1 million, $3.4 million, $7.1 million, $9.2 million and $9.5 million of acquired loans at June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, and June 30, 2018, respectively.

**

Includes $38.6 million, $37.8 million, $39.3 million, $45.3 million and $44.5 million of acquired loans at June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, and June 30, 2018, respectively.

  

Northwest Bancshares, Inc. and Subsidiaries

Loan delinquency (Unaudited)

(Dollars in thousands)




June 30,

2019


*


March 31,

2019


*


December 31,

2018


*


September 30,

2018


*


June 30,

2018


*

(Number of loans and dollar amount of loans)































Loans delinquent 30 days to 59 days:































Residential mortgage loans


30



$

1,629



0.1

%


311



$

28,009



1.0

%


333



$

27,777



1.0

%


27



$

1,500



0.1

%


30



$

1,561



0.1

%

Home equity loans


148



4,573



0.3

%


195



7,626



0.6

%


233



8,649



0.7

%


184



5,673



0.4

%


184



6,383



0.5

%

Consumer finance loans


75



130



9.0

%


128



295



12.9

%


327



661



17.3

%


280



632



10.7

%


306



711



8.1

%

Consumer loans


781



7,500



0.7

%


777



7,228



0.8

%


1,073



9,447



1.1

%


984



8,408



1.1

%


901



8,855



1.3

%

Commercial real estate loans


31



2,418



0.1

%


48



28,965



1.0

%


37



5,503



0.2

%


36



5,386



0.2

%


40



5,898



0.2

%

Commercial loans


14



666



0.1

%


30



3,359



0.5

%


21



973



0.2

%


17



622



0.1

%


24



1,000



0.2

%

Total loans delinquent 30 days to 59 days


1,079



$

16,916



0.2

%


1,489



$

75,482



0.9

%


2,024



$

53,010



0.7

%


1,528



$

22,221



0.3

%


1,485



$

24,408



0.3

%
































Loans delinquent 60 days to 89 days:































Residential mortgage loans


78



$

6,264



0.2

%


29



$

2,602



0.1

%


71



$

6,425



0.2

%


61



$

4,704



0.2

%


62



$

5,847



0.2

%

Home equity loans


59



2,319



0.2

%


53



2,544



0.2

%


63



2,065



0.2

%


69



2,536



0.2

%


73



2,495



0.2

%

Consumer finance loans


25



44



3.0

%


28



47



2.1

%


86



172



4.5

%


112



234



4.0

%


127



277



3.2

%

Consumer loans


313



2,853



0.3

%


271



2,130



0.2

%


389



3,042



0.4

%


352



3,251



0.4

%


350



2,654



0.4

%

Commercial real estate loans


16



2,617



0.1

%


17



4,064



0.1

%


24



5,387



0.2

%


30



6,678



0.3

%


28



3,689



0.1

%

Commercial loans


16



1,725



0.2

%


7



738



0.1

%


8



560



0.1

%


21



1,104



0.2

%


15



926



0.2

%

Total loans delinquent 60 days to 89 days


507



$

15,822



0.2

%


405



$

12,125



0.2

%


641



$

17,651



0.2

%


645



$

18,507



0.2

%


655



$

15,888



0.2

%
































Loans delinquent 90 days or more: **































Residential mortgage loans


129



$

10,800



0.4

%


113



$

10,801



0.4

%


145



$

12,985



0.5

%


143



$

13,483



0.5

%


140



$

12,293



0.4

%

Home equity loans


136



5,591



0.4

%


155



5,542



0.4

%


161



6,037



0.5

%


150



5,838



0.5

%


154



6,768



0.5

%

Consumer finance loans


5



10



0.7

%






%


6



21



0.6

%


16



39



0.7

%


8



15



0.2

%

Consumer loans


705



2,898



0.3

%


764



3,221



0.3

%


432



3,233



0.4

%


766



3,541



0.5

%


302



2,633



0.4

%

Commercial real estate loans


118



21,123



0.7

%


125



24,589



0.9

%


128



25,587



1.0

%


126



27,228



1.1

%


113



15,772



0.6

%

Commercial loans


25



2,920



0.4

%


23



2,027



0.3

%


29



3,010



0.5

%


29



2,714



0.5

%


31



2,925



0.5

%

Total loans delinquent 90 days or more


1,118



$

43,342



0.5

%


1,180



$

46,180



0.6

%


901



$

50,873



0.6

%


1,230



$

52,843



0.7

%


748



$

40,406



0.5

%
































Total loans delinquent


2,704



$

76,080



0.9

%


3,074



$

133,787



1.6

%


3,566



$

121,534



1.5

%


3,403



$

93,571



1.2

%


2,888



$

80,702



1.0

%

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

**  Includes purchased credit impaired loans of $190,000, $87,000, $145,000, $440,000, and $672,000 at June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively.

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for loan losses (Unaudited)

(Dollars in thousands)



Quarter ended


June 30,

 2019


March 31,

 2019


December 31,

 2018


September 30,

 2018


June 30,

 2018

Beginning balance

$

55,721



55,214



55,975



57,332



55,211


Provision

4,667



6,467



3,792



6,982



5,349


Charge-offs residential mortgage

(397)



(357)



(375)



(214)



(389)


Charge-offs home equity

(389)



(153)



(341)



(426)



(406)


Charge-offs consumer finance

(58)



(179)



(329)



(445)



(486)


Charge-offs consumer

(2,508)



(2,842)



(3,751)



(3,470)



(2,682)


Charge-offs commercial real estate

(4,367)



(604)



(1,538)



(4,859)



(439)


Charge-offs commercial

(1,087)



(3,270)



(824)



(985)



(491)


Recoveries

1,525



1,445



2,605



2,060



1,665


Ending balance

$

53,107



55,721



55,214



55,975



57,332












Net charge-offs to average loans, annualized

0.34

%


0.29

%


0.23

%


0.42

%


0.16

%



Six months ended June 30,


2019


2018

Beginning balance

$

55,214



56,795


Provision

11,134



9,558


Charge-offs residential mortgage

(754)



(590)


Charge-offs home equity

(542)



(1,017)


Charge-offs consumer finance

(237)



(2,039)


Charge-offs consumer

(5,350)



(5,931)


Charge-offs commercial real estate

(4,971)



(990)


Charge-offs commercial

(4,357)



(1,516)


Recoveries

2,970



3,062


Ending balance

$

53,107



57,332






Net charge-offs to average loans, annualized

0.32

%


0.23

%








June 30, 2019


Originated loans


Acquired loans


Total loans


Balance


Reserve


Balance


Reserve


Balance


Reserve

Residential mortgage loans

$

2,812,937



3,909



86,227



104



2,899,164



4,013


Home equity loans

1,041,302



2,990



273,645



344



1,314,947



3,334


Legacy consumer finance loans

1,449



266







1,449



266


Consumer loans

964,149



10,500



45,826



511



1,009,975



11,011


Personal Banking Loans

4,819,837



17,665



405,698



959



5,225,535



18,624














Commercial real estate loans

2,336,416</