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

Company Release - 1/27/2020 9:00 AM ET

WARREN, Pa., Jan. 27, 2020 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2019 of $25.6 million, or $0.24 per diluted share.  This represents a decrease of $876,000, or 3.3%, compared to the same quarter last year when net income was $26.5 million or $0.26 per diluted share.  The annualized returns on average shareholders' equity and average assets for the quarter ended December 31, 2019 were 7.52% and 0.97% compared to 8.44% and 1.09% 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 $0.19 per share payable on February 14, 2020 to shareholders of record as of February 6, 2020.  This is the 101st consecutive quarter in which the Company has paid a cash dividend and represents a 5.6% increase over the prior year.  Based on the market value of the Company's stock as of December 31, 2019, this represents an annualized dividend yield of approximately 4.57%.

In making this announcement, Ronald J. Seiffert, Chairman, President and CEO, noted, "While the fourth quarter was negatively impacted by a loan loss provision for a recently classified C&I loan, costs associated with litigation settlements as well as a continued decline in net interest margin as expected, overall we were very pleased with our annual 2019 results. Annual net income of $110.4 million, or $1.04 per diluted share, exceeded the prior year net income of $105.5 million, or $1.02 per diluted share, by $4.9 million or almost 5.0%.  For the year, loans grew $757.2 million, or 9.4%, with approximately half of this growth coming from the Union Community Bank acquisition and the other half coming from internal growth.  In addition, we were able to fund this growth almost entirely with internal deposit growth.  Noninterest income experienced exceptional growth for the year of $7.7 million, or 8.4%, across almost all categories.  Our mortgage banking operation is beginning to contribute in a meaningful way, brokerage investment revenue increased by over 7% and recent changes in the fourth quarter in our fees and fee income philosophy will benefit us going into 2020.  Finally, we look forward to welcoming the MutualBank employees and customers in April along with their $2.1 billion balance sheet and expected earnings accretion."

Net interest income increased by $2.1 million, or 2.4%, to $88.9 million for the quarter ended December 31, 2019, from $86.8 million for the quarter ended December 31, 2018, primarily due to a $5.4 million, or 5.8%, increase in interest income on loans receivable.  This increase was primarily due to an increase of $734.0 million, or 9.2%, in the average balance of loans.  Partially offsetting this improvement was an increase in interest expense on deposits of $3.9 million, or 43.5%, due to elevated market interest rates when compared to the prior year, resulting in an increase in the cost of our interest-bearing liabilities to 0.80% for the quarter ended December 31, 2019 from 0.67% for the quarter ended December 31, 2018.  The net impact of these changes caused the Company's net interest margin to decrease to 3.73% for the quarter ended December 31, 2019 from 3.94% for the same quarter last year.

The provision for loan losses increased by $4.4 million, or 116.9%, to $8.2 million for the quarter ended December 31, 2019, from $3.8 million for the quarter ended December 31, 2018.  The provision increased in the current quarter due to the downgrade of an $11.5 million commercial loan resulting in a loan loss reserve on this relationship of approximately $7.4 million.

Noninterest income increased by $5.0 million, or 21.4%, to $28.2 million for the quarter ended December 31, 2019, from $23.2 million for the quarter ended December 31, 2018.  This increase was due to a $1.3 million, or 10.1%, increase in service charges and fees as a result of additional fees collected on deposit accounts due to a recent change in fee structure, a $1.3 million increase in mortgage banking income as a result of expanding our secondary market sales capabilities and a $1.0 million, or 34.6%, increase in other operating income from increases in interest rate swap fee income.  In addition, we recognized a gain of $908,000 in the current quarter on the sale of approximately $52.2 million of one-to-four family mortgage loans from our portfolio.  Consistent with our strategy in the third quarter of 2019, we chose to sell these loans as they were identified as most likely to refinance due to declining market interest rates and we redeployed the proceeds into shorter duration consumer and commercial loans at an equivalent yield.

Noninterest expense increased by $4.3 million, or 5.9%, to $76.6 million for the quarter ended December 31, 2019, from $72.3 million for the quarter ended December 31, 2018.  This increase resulted from a $2.8 million, or 7.0%, increase in compensation and employee benefits due to both internal growth in compensation and staff as well as the addition of Union Community Bank ("UCB") employees. Also contributing to this increase was an increase in other expenses of $1.2 million, or 31.5%, primarily related to an increase in litigation accruals and an increase in acquisition expense of $679,000 due to initial expenses incurred as a result of the recently announced acquisition of MutualFirst Financial, Inc.  Partially offsetting this increase was a decrease in marketing expenses of $1.3 million due primarily to our debit card reward program being discontinued and a decrease in federal deposit premiums of $637,000 due to an assessment credit received during the quarter as a result of the deposit insurance fund becoming fully funded.

Net income for the year ended December 31, 2019 was $110.4 million, or $1.04 per diluted share.  This represents an increase of $4.9 million, or 4.7%, compared to the year ended December 31, 2018, when net income was $105.5 million, or $1.02 per diluted share.  The annualized returns on average shareholders' equity and average assets for the year ended December 31, 2019 were 8.36% and 1.07% compared to 8.61% and 1.11% for the prior year.  This increase in net income was the result of an increase in net interest income after provision of $19.5 million, or 6.1%, and an increase in noninterest income of $7.7 million, or 8.4%.  These increases were partially offset by an increase in noninterest expense of $20.0 million, or 7.2%.  Contributing to the additional expense is the added cost of UCB operations, including additional compensation 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 UCB conversion in March 2019 and the initial costs incurred for the pending MutualFirst Financial, Inc. acquisition scheduled to close in the second quarter of 2020.

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 nine 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)



December 31, 
2019


September 30, 
2019


December 31, 
2018

Assets






Cash and cash equivalents

$

60,846



107,602



68,789


Marketable securities available-for-sale (amortized cost of $815,495, $801,465 and $811,015, respectively)

819,901



807,823



801,450


Marketable securities held-to-maturity (fair value of $18,223, $19,237 and $22,446, respectively)

18,036



18,958



22,765


Total cash and cash equivalents and marketable securities

898,783



934,383



893,004








Residential mortgage loans held-for-sale

7,709



8,859




Residential mortgage loans

2,860,418



2,887,274



2,864,470


Home equity loans

1,342,918



1,328,173



1,258,422


Consumer loans

1,125,132



1,094,293



859,713


Commercial real estate loans

2,754,390



2,812,839



2,471,821


Commercial loans

718,107



720,579



597,013


Total loans receivable

8,808,674



8,852,017



8,051,439


Allowance for loan losses

(57,941)



(52,859)



(55,214)


Loans receivable, net

8,750,733



8,799,158



7,996,225








Federal Home Loan Bank stock, at cost

14,740



21,401



15,635


Accrued interest receivable

25,755



27,069



24,490


Real estate owned, net

950



1,237



2,498


Premises and equipment, net

147,409



148,796



143,390


Bank-owned life insurance

189,091



187,971



171,079


Goodwill

346,103



344,720



307,420


Other intangible assets

23,076



22,410



19,821


Other assets

97,268



93,329



34,211


Total assets

$

10,493,908



10,580,474



9,607,773


Liabilities and shareholders' equity






Liabilities






Noninterest-bearing demand deposits

$

1,609,653



1,905,650



1,736,156


Interest-bearing demand deposits

1,944,108



1,678,644



1,455,460


Money market deposit accounts

1,863,998



1,828,001



1,661,623


Savings deposits

1,604,838



1,635,754



1,636,099


Time deposits

1,569,410



1,633,451



1,404,841


Total deposits

8,592,007



8,681,500



7,894,179








Borrowed funds

246,336



255,257



234,389


Junior subordinated debentures

121,800



121,787



111,213


Advances by borrowers for taxes and insurance

44,556



24,331



43,298


Accrued interest payable

1,142



1,314



744


Other liabilities

134,782



144,515



66,312


Total liabilities

9,140,623



9,228,704



8,350,135


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, 106,859,088, 106,658,067, and 103,354,030 shares issued and outstanding, respectively

1,069



1,067



1,034


Paid-in capital

805,750



801,382



745,926


Retained earnings

583,407



577,018



550,374


Accumulated other comprehensive loss

(36,941)



(27,697)



(39,696)


Total shareholders' equity

1,353,285



1,351,770



1,257,638


Total liabilities and shareholders' equity

$

10,493,908



10,580,474



9,607,773








Equity to assets

12.90

%


12.78

%


13.09

%

Tangible common equity to assets

9.72

%


9.64

%


10.03

%

Book value per share

$

12.66



12.67



12.17


Tangible book value per share

$

9.21



9.23



9.00


Closing market price per share

$

16.63



16.39



16.94


Full time equivalent employees

2,209



2,218



2,128


Number of banking offices

181



182



172


 

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)



Quarter ended


December 31,
2019


September 30,
2019


June 30, 
2019


March 31,
2019


December 31,
2018






Interest income:










Loans receivable

$

97,866



101,091



100,917



94,935



92,512


Mortgage-backed securities

4,237



4,188



4,280



3,965



3,942


Taxable investment securities

683



884



898



936



924


Tax-free investment securities

201



224



237



182



170


FHLB dividends

262



307



316



171



151


Interest-earning deposits

169



172



159



100



69


Total interest income

103,418



106,866



106,807



100,289



97,768


Interest expense:










Deposits

12,893



13,694



12,484



10,145



8,985


Borrowed funds

1,580



2,236



1,720



2,162



1,952


Total interest expense

14,473



15,930



14,204



12,307



10,937


Net interest income

88,945



90,936



92,603



87,982



86,831


   Provision for loan losses

8,223



3,302



4,667



6,467



3,792


Net interest income after provision for loan losses

80,722



87,634



87,936



81,515



83,039


Noninterest income:










Gain/(loss) on sale of investments

27





29



(6)



4


Gain on sale of loans

908



826








Service charges and fees

14,125



13,558



13,339



12,043



12,827


Trust and other financial services income

4,517



4,609



4,444



4,195



4,246


Insurance commission income

1,858



1,887



2,145



2,178



1,906


Gain/(loss) on real estate owned, net

86



(227)



91



(3)



(14)


Income from bank owned life insurance

1,121



1,095



1,197



1,005



1,038


Mortgage banking income

1,494



1,921



188



216



213


Other operating income

4,077



2,500



1,930



2,034



3,028


Total noninterest income

28,213



26,169



23,363



21,662



23,248


Noninterest expense:










Compensation and employee benefits

42,074



40,816



42,008



38,188



39,319


Premises and occupancy costs

7,051



7,061



7,387



7,218



6,567


Office operations

4,097



3,197



3,708



3,131



3,455


Collections expense

566



747



939



308



780


Processing expenses

10,263



11,122



10,634



10,434



10,160


Marketing expenses

1,010



1,373



2,729



1,886



2,331


Federal deposit insurance premiums



(702)



681



706



637


Professional services

3,533



3,032



3,198



2,524



3,134


Amortization of intangible assets

1,634



1,702



1,760



1,447



1,346


Real estate owned expense

72



119



128



159



187


Restructuring/acquisition expense

1,114



23



1,105



1,926



435


Other expenses

5,157



2,106



3,235



3,497



3,922


Total noninterest expense

76,571



70,596



77,512



71,424



72,273


Income before income taxes

32,364



43,207



33,787



31,753



34,014


Income tax expense

6,773



9,793



7,404



6,709



7,547


Net income

$

25,591



33,414



26,383



25,044



26,467












Basic earnings per share

$

0.24



0.32



0.25



0.24



0.26


Diluted earnings per share

$

0.24



0.31



0.25



0.24



0.26












Weighted average common shares outstanding - basic

105,627,194



105,517,707



105,233,635



103,101,789



102,479,086


Weighted average common shares outstanding - diluted

106,306,615



106,270,544



106,258,215



104,496,592



103,749,383












Annualized return on average equity

7.52

%


9.90

%


8.01

%


7.96

%


8.44

%

Annualized return on average assets

0.97

%


1.25

%


1.02

%


1.03

%


1.09

%

Annualized return on tangible common equity**

10.32

%


13.46

%


10.97

%


10.74

%


11.29

%











Efficiency ratio *

63.01

%


58.81

%


64.37

%


62.07

%


64.04

%

Annualized noninterest expense to average assets *

2.80

%


2.59

%


2.88

%


2.79

%


2.91

%



*

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

**  

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

 

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)



Year ended December 31,


2019


2018

Interest income:




Loans receivable

$

394,809



356,571


Mortgage-backed securities

16,670



13,781


Taxable investment securities

3,401



3,064


Tax-free investment securities

844



1,078


FHLB dividends

1,056



452


Interest-earning deposits

600



835


Total interest income

417,380



375,781


Interest expense:




Deposits

49,216



30,985


Borrowed funds

7,698



6,155


Total interest expense

56,914



37,140


Net interest income

360,466



338,641


   Provision for loan losses

22,659



20,332


Net interest income after provision for loan losses

337,807



318,309


Noninterest income:




Gain on sale of investments

50



157


Gain on sale of loans

1,734




Service charges and fees

53,065



50,792


Trust and other financial services income

17,765



16,581


Insurance commission income

8,068



8,791


Loss on real estate owned, net

(53)



(631)


Income from bank owned life insurance

4,418



5,821


Mortgage banking income

3,819



596


Other operating income

10,541



9,595


Total noninterest income

99,407



91,702


Noninterest expense:




Compensation and employee benefits

163,086



152,395


Premises and occupancy costs

28,717



27,519


Office operations

14,133



14,139


Collections expense

2,560



2,209


Processing expenses

42,453



39,046


Marketing expenses

6,998



8,434


Federal deposit insurance premiums

685



2,746


Professional services

12,287



10,598


Amortization of intangible assets

6,543



5,848


Real estate owned expense

478



817


Restructuring/acquisition expense

4,168



1,014


Other expenses

13,995



11,333


Total noninterest expense

296,103



276,098


Income before income taxes

141,111



133,913


Income tax expense

30,679



28,422


Net income

$

110,432



105,491






Basic earnings per share

$

1.05



1.03


Diluted earnings per share

$

1.04



1.02






Weighted average common shares outstanding - basic

104,878,774


102,073,888

Weighted average common shares outstanding - diluted

105,839,149


103,565,901





Return on average equity

8.36

%


8.61

%

Return on average assets

1.07

%


1.11

%

Return on tangible common equity**

11.22

%


11.34

%





Efficiency ratio *

62.06

%


62.56

%

Annualized noninterest expense to average assets *

2.76

%


2.83

%



*  

Excludes restructuring/acquisition 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)



December 31, 
2019


September 30, 
2019


June 30, 
2019


March 31, 
2019


December 31, 
2018

Nonaccrual loans current:










Residential mortgage loans

$

72



676



432



124



264


Home equity loans

197



607



475



643



437


Consumer loans

78



68



94



76



196


Commercial real estate loans

9,241



7,674



12,605



10,520



9,947


Commercial loans

3,424



3,777



5,666



4,277



4,736


Total nonaccrual loans current

$

13,012



12,802



19,272



15,640



15,580


Nonaccrual loans delinquent 30 days to 59 days:










Residential mortgage loans

$

674



40



13



824



1,358


Home equity loans

224



102



418



160



266


Consumer loans

121



246



172



154



294


Commercial real estate loans

196



925



469



2,642



219


Commercial loans

55



44



45



321



23


Total nonaccrual loans delinquent 30 days to 59 days

$

1,270



1,357



1,117



4,101



2,160


Nonaccrual loans delinquent 60 days to 89 days:










Residential mortgage loans

$

1,048



979



910



1,323



1,262


Home equity loans

689



436



717



954



376


Consumer loans

417



426



322



683



582


Commercial real estate loans

413



536



1,426



3,588



1,260


Commercial loans

341





780



397



332


Total nonaccrual loans delinquent 60 days to 89 days

$

2,908



2,377



4,155



6,945



3,812


Nonaccrual loans delinquent 90 days or more:










Residential mortgage loans

$

12,682



11,722



10,617



10,781



12,965


Home equity loans

5,635



5,966



5,591



5,542



5,996


Consumer finance loans

1



1



10





22


Consumer loans

3,609



3,399



2,892



3,215



3,228


Commercial real estate loans

25,014



22,292



21,123



24,528



25,509


Commercial loans

4,739



5,741



2,920



2,027



3,010


Total nonaccrual loans delinquent 90 days or more

$

51,680



49,121



43,153



46,093



50,730


Total nonaccrual loans

$

68,870



65,657



67,697



72,779



72,282


Total nonaccrual loans

$

68,870



65,657



67,697



72,779



72,282


Loans 90 days past maturity and still accruing

32



85



55



166



166


Nonperforming loans

68,902



65,742



67,752



72,945



72,448


Real estate owned, net

950



1,237



2,070



2,345



2,498


Nonperforming assets

$

69,852



66,979



69,822



75,290



74,946


Nonaccrual troubled debt restructuring *

$

9,043



9,138



13,375



14,951



15,306


Accruing troubled debt restructuring

22,956



21,162



17,894



17,861



18,302


Total troubled debt restructuring

$

31,999



30,300



31,269



32,812



33,608












Nonperforming loans to total loans

0.78

%


0.74

%


0.78

%


0.85

%


0.90

%

Nonperforming assets to total assets

0.67

%


0.63

%


0.66

%


0.73

%


0.78

%

Allowance for loan losses to total loans

0.66

%


0.60

%


0.61

%


0.65

%


0.69

%

Allowance for loan losses to nonperforming loans

84.09

%


80.40

%


78.38

%


76.39

%


76.21

%



*

Amounts included in nonperforming loans above.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Loans by credit quality indicators (Unaudited)

(dollars in thousands)


At December 31, 2019


Pass


Special
mention*


Substandard**


Doubtful


Loss


Loans

receivable

Personal Banking:













Residential mortgage loans


$

2,858,582



9,545




2,868,127

Home equity loans


1,336,111



6,807




1,342,918

Consumer loans


1,120,732



4,400




1,125,132

Total Personal Banking


5,315,425



20,752




5,336,177

Commercial Banking:













Commercial real estate loans


2,538,816


80,570


135,004




2,754,390

Commercial loans


616,983


42,380


58,744




718,107

Total Commercial Banking


3,155,799


122,950


193,748




3,472,497

Total loans


$

8,471,224


122,950


214,500




8,808,674

At September 30, 2019













Personal Banking:













Residential mortgage loans


$

2,887,077



9,056




2,896,133

Home equity loans


1,320,930



7,243




1,328,173

Consumer loans


1,090,030



4,263




1,094,293

Total Personal Banking


5,298,037



20,562




5,318,599

Commercial Banking:













Commercial real estate loans


2,601,025


69,380


142,253


181



2,812,839

Commercial loans


639,998


37,666


42,800


115



720,579

Total Commercial Banking


3,241,023


107,046


185,053


296



3,533,418

Total loans


$

8,539,060


107,046


205,615


296



8,852,017

At June 30, 2019













Personal Banking:













Residential mortgage loans


$

2,890,472



8,692




2,899,164

Home equity loans


1,307,887



7,060




1,314,947

Consumer loans


1,007,813



3,611




1,011,424

Total Personal Banking


5,206,172



19,363




5,225,535

Commercial Banking:













Commercial real estate loans


2,586,013


86,434


135,525


181



2,808,153

Commercial loans


621,889


38,182


42,141


982



703,194

Total Commercial Banking


3,207,902


124,616


177,666


1,163



3,511,347

Total loans


$

8,414,074


124,616


197,029


1,163



8,736,882

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



*

Includes $10.3 million, $8.7 million, $8.1 million, $3.4 million, and $7.1 million of acquired loans at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively.

**

Includes $53.1 million, $46.6 million, $38.6 million, $37.8 million, and $39.3 million of acquired loans at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Loan delinquency (Unaudited)

(dollars in thousands)




December 31, 
2019


*


September 30,
2019


*


June 30,
2019


*


March 31, 
2019


*


December 31, 
2018


*

(Number of loans and dollar amount of loans)































Loans delinquent 30 days to 59 days:































Residential mortgage loans


292



$

23,296



0.8

%


21



$

1,236



%


30



$

1,629



0.1

%


311



$

28,009



1.0

%


333



$

27,777



1.0

%

Home equity loans


173



6,469



0.5

%


149



4,774



0.4

%


148



4,573



0.3

%


195



7,626



0.6

%


233



8,649



0.7

%

Consumer finance loans


32



63



12.4

%


43



98



11.2

%


75



130



9.0

%


128



295



12.9

%


327



661



17.3

%

Consumer loans


928



9,145



0.8

%


821



7,499



0.7

%


781



7,500



0.7

%


777



7,228



0.8

%


1,073



9,447



1.1

%

Commercial real estate loans


43



7,921



0.3

%


27



5,308



0.2

%


31



2,418



0.1

%


48



28,965



1.0

%


37



5,503



0.2

%

Commercial loans


32



1,187



0.2

%


20



362



0.1

%


14



666



0.1

%


30



3,359



0.5

%


21



973



0.2

%

Total loans delinquent 30 days to 59 days


1,500



$

48,081



0.5

%


1,081



$

19,277



0.2

%


1,079



$

16,916



0.2

%


1,489



$

75,482



0.9

%


2,024



$

53,010



0.7

%
































Loans delinquent 60 days to 89 days:































Residential mortgage loans


67



$

5,693



0.2

%


95



$

5,320



0.2

%


78



$

6,264



0.2

%


29



$

2,602



0.1

%


71



$

6,425



0.2

%

Home equity loans


66



2,405



0.2

%


66



2,103



0.2

%


59



2,319



0.2

%


53



2,544



0.2

%


63



2,065



0.2

%

Consumer finance loans


16



35



6.8

%


21



43



4.9

%


25



44



3.0

%


28



47



2.1

%


86



172



4.5

%

Consumer loans


379



3,267



0.3

%


267



2,589



0.2

%


313



2,853



0.3

%


271



2,130



0.2

%


389



3,042



0.4

%

Commercial real estate loans


19



1,690



0.1

%


15



1,893



0.1

%


16



2,617



0.1

%


17



4,064



0.1

%


24



5,387



0.2

%

Commercial loans


17



6,403



0.9

%


10



589



0.1

%


16



1,725



0.2

%


7



738



0.1

%


8



560



0.1

%

Total loans delinquent 60 days to 89 days


564



$

19,493



0.2

%


474



$

12,537



0.1

%


507



$

15,822



0.2

%


405



$

12,125



0.2

%


641



$

17,651



0.2

%
































Loans delinquent 90 days or more: **































Residential mortgage loans


141



$

12,775



0.4

%


138



$

11,816



0.4

%


129



$

10,800



0.4

%


113



$

10,801



0.4

%


145



$

12,985



0.5

%

Home equity loans


159



5,688



0.4

%


157



5,966



0.4

%


136



5,591



0.4

%


155



5,542



0.4

%


161



6,037



0.5

%

Consumer finance loans


8



1



0.2

%


9



1



0.1

%


5



10



0.7

%






%


6



21



0.6

%

Consumer loans


582



3,610



0.3

%


389



3,400



0.3

%


705



2,898



0.3

%


764



3,221



0.3

%


432



3,233



0.4

%

Commercial real estate loans


129



25,014



0.9

%


118



22,292



0.8

%


118



21,123



0.7

%


125



24,589



0.9

%


128



25,587



1.0

%

Commercial loans


37



4,739



0.7

%


40



5,741



0.8

%


25



2,920



0.4

%


23



2,027



0.3

%


29



3,010



0.5

%

Total loans delinquent 90 days or more


1,056



$

51,827



0.6

%


851



$

49,216



0.6

%


1,118



$

43,342



0.5

%


1,180



$

46,180



0.6

%


901



$

50,873



0.6

%
































Total loans delinquent


3,120



$

119,401



1.4

%


2,406



$

81,030



0.9

%


2,704



$

76,080



0.9

%


3,074



$

133,787



1.6

%


3,566



$

121,534



1.5

%



*

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

**

Includes purchased credit impaired loans of $147,000, $95,000, $190,000, $87,000, and $145,000 at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for loan losses (Unaudited)

(dollars in thousands)



Quarter ended


December 31, 
2019


September 30, 
2019


June 30, 
2019


March 31, 
2019


December 31, 
2018

Beginning balance

$

52,859



53,107



55,721



55,214



55,975


Provision

8,223



3,302



4,667



6,467



3,792


Charge-offs residential mortgage

(222)



(190)



(397)



(357)



(375)


Charge-offs home equity

(113)



(466)



(389)



(153)



(341)


Charge-offs consumer finance

(24)



(59)



(58)



(179)



(329)


Charge-offs consumer

(3,118)



(3,019)



(2,508)



(2,842)



(3,751)


Charge-offs commercial real estate

(107)



(389)



(4,367)



(604)



(1,538)


Charge-offs commercial

(1,143)



(1,151)



(1,087)



(3,270)



(824)


Recoveries

1,586



1,724



1,525



1,445



2,605


Ending balance

$

57,941



52,859



53,107



55,721



55,214


Net charge-offs to average loans, annualized

0.14

%


0.16

%


0.34

%


0.29

%


0.23

%

 


Year ended December 31,


2019


2018

Beginning balance

$

55,214



56,795


Provision

22,659



20,332


Charge-offs residential mortgage

(1,166)



(1,179)


Charge-offs home equity

(1,121)



(1,785)


Charge-offs consumer finance

(320)



(2,813)


Charge-offs consumer

(11,487)



(13,152)


Charge-offs commercial real estate

(5,467)



(7,387)


Charge-offs commercial

(6,651)



(3,325)


Recoveries

6,280



7,728


Ending balance

$

57,941



55,214


Net charge-offs to average loans

0.23

%


0.28

%

 


December 31, 2019


Originated loans


Acquired loans


Total loans


Balance


Reserve


Balance


Reserve


Balance


Reserve

Residential mortgage loans

$

2,785,189


2,463


82,938


111


2,868,127


2,574

Home equity loans

1,099,514


2,830


243,404


359


1,342,918


3,189

Consumer finance loans

509


76




509


76

Consumer loans

1,088,638


11,979


35,985


538


1,124,623


12,517

Personal Banking Loans

4,973,850


17,348


362,327


1,008


5,336,177


18,356

Commercial real estate loans

2,349,048


17,292


405,342


4,296


2,754,390


21,588

Commercial loans

664,159


16,799


53,948


1,198


718,107


17,997

Commercial Banking Loans

3,013,207


34,091


459,290


5,494


3,472,497


39,585

Total Loans

$

7,987,057


51,439


821,617


6,502


8,808,674


57,941

 

 

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, 2019


September 30, 2019


June 30, 2019


March 31, 2019


December 31, 2018


Average
balance


Interest


Avg.

yield/

cost (h)


Average
balance


Interest


Avg.
yield/
cost (h)


Average
balance


Interest


Avg.
yield/
cost (h)


Average
balance


Interest


Avg.
yield/
cost (h)


Average
balance


Interest


Avg.
yield/
cost (h)

Assets:






























Interest-earning assets:






























Residential mortgage loans

$

2,847,932



28,011



3.93

%


$

2,894,716



28,991



4.01

%


$

2,857,425



29,300



4.10

%


$

2,842,556



29,282



4.12

%


$

2,837,220



28,794



4.06

%

Home equity loans

1,333,748



15,354



4.57

%


1,316,033



16,131



4.86

%


1,319,056



17,717



5.39

%


1,265,974



16,048



5.14

%


1,264,169



15,788



4.95

%

Consumer finance loans

668



32



19.16

%


1,128



55



19.50

%


1,826



87



19.06

%


2,999



139



18.54

%


4,751



220



18.52

%

Consumer loans

1,072,897



11,984



4.43

%


1,027,451



11,861



4.58

%


943,254



10,649



4.53

%


869,536



10,052



4.69

%


791,685



9,365



4.69

%

Commercial real estate loans

2,741,687



32,985



4.71

%


2,796,351



34,441



4.82

%


2,801,953



35,537



5.02

%


2,560,408



30,767



4.81

%


2,492,331



29,991



4.71

%

Commercial loans

717,438



9,841



5.37

%


710,847



9,949



5.48

%


670,613



7,966



4.70

%


615,090



8,967



5.83

%


590,195



8,666



5.75

%

Total loans receivable (a) (b) (d)

8,714,370



98,207



4.47

%


8,746,526



101,428



4.60

%


8,594,127



101,256



4.73

%


8,156,563



95,255



4.74

%


7,980,351



92,824



4.61

%

Mortgage-backed securities (c)

667,910



4,237



2.54

%


641,085



4,188



2.61

%


644,887



4,280



2.65

%


604,463



3,965



2.62

%


619,105



3,942



2.55

%

Investment securities (c) (d)

151,289



938



2.48

%


218,753



1,168



2.14

%


226,325



1,198



2.12

%


227,312



1,167



2.05

%


227,813



1,140



2.00

%

FHLB stock, at cost

13,400



262



7.76

%


16,302



307



7.47

%


16,117



316



7.86

%


16,098



171



4.31

%


14,372



151



4.17

%

Other interest-earning deposits

31,624



169



2.09

%


28,832



172



2.33

%


20,983



159



3.00

%


14,136



100



2.83

%


10,454



68



2.55

%

Total interest-earning assets

9,578,593



103,813



4.30

%


9,651,498



107,263



4.41

%


9,502,439



107,209



4.53

%


9,018,572



100,658



4.53

%


8,852,095



98,125



4.40

%

Noninterest earning assets (e)

869,117







916,781







910,225







868,843







743,262






Total assets

$

10,447,710







$

10,568,279







$

10,412,664







$

9,887,415







$

9,595,357






Liabilities and shareholders' equity:






























Interest-bearing liabilities:






























Savings deposits

$

1,615,996



792



0.19

%


$

1,658,670



788



0.19

%


$

1,696,715



777



0.18

%


$

1,650,947



758



0.19

%


$

1,637,400



758



0.18

%

Interest-bearing demand deposits

1,769,623



1,570



0.35

%


1,655,952



1,711



0.41

%


1,674,779