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

Company Release - 7/27/2020 9:24 AM ET

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

(PRNewsfoto/Northwest Bancshares, Inc.)

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.19 per share payable on August 14, 2020 to shareholders of record as of August 6, 2020.  This is the 103rd consecutive quarter in which the Company has paid a cash dividend.  Based on the market value of the Company's common stock as of June 30, 2020, this represents an annualized dividend yield of approximately 7.43%.

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

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

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

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

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

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

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

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

Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. As of June 30, 2020, Northwest operated 205 full-service community banking offices and eight free standing drive-through facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.

#                      #                      #

Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; (7) increased risk associated with commercial real-estate and business loans; and (8) the effect of any pandemic, including COVID-19, war or act of terrorism.  Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(dollars in thousands, except per share amounts)



June 30,
2020


December 31,
2019


June 30,
2019

Assets






Cash and cash equivalents

$

837,227



60,846



106,988


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

1,198,792



819,901



854,765


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

16,415



18,036



20,414


Total cash and cash equivalents and marketable securities

2,052,434



898,783



982,167








Residential mortgage loans held-for-sale

34,118



7,709




Residential mortgage loans

3,188,637



2,860,418



2,899,164


Home equity loans

1,450,370



1,342,918



1,314,947


Consumer loans

1,518,119



1,125,132



1,011,424


Commercial real estate loans

3,308,824



2,754,390



2,808,153


Commercial loans

1,358,719



718,107



703,194


Total loans receivable

10,858,787



8,808,674



8,736,882


Allowance for credit losses

(140,586)



(57,941)



(53,107)


Loans receivable, net

10,718,201



8,750,733



8,683,775








Federal Home Loan Bank stock, at cost

25,542



14,740



14,966


Accrued interest receivable

40,510



25,755



28,742


Real estate owned, net

1,897



950



2,070


Premises and equipment, net

166,966



147,409



148,973


Bank-owned life insurance

251,897



189,091



186,870


Goodwill

386,044



346,103



344,720


Other intangible assets, net

23,381



23,076



24,112


Other assets

178,212



97,268



89,088


Total assets

$

13,845,084



10,493,908



10,505,483


Liabilities and shareholders' equity






Liabilities






Noninterest-bearing demand deposits

$

2,686,487



1,609,653



1,944,550


Interest-bearing demand deposits

2,632,310



1,944,108



1,670,983


Money market deposit accounts

2,327,286



1,863,998



1,784,437


Savings deposits

1,993,761



1,604,838



1,683,551


Time deposits

1,823,097



1,569,410



1,600,372


Total deposits

11,462,941



8,592,007



8,683,893








Borrowed funds

440,079



246,336



171,677


Junior subordinated debentures

128,630



121,800



121,757


Advances by borrowers for taxes and insurance

58,559



44,556



54,507


Accrued interest payable

1,389



1,142



1,207


Other liabilities

222,637



134,782



138,854


Total liabilities

12,314,235



9,140,623



9,171,895


Shareholders' equity






Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares issued






Common stock, $0.01 par value: 500,000,000 shares authorized, 127,838,400, 106,859,088, and
106,614,607 shares issued and outstanding, respectively

1,278



1,069



1,066


Paid-in capital

1,023,083



805,750



798,942


Retained earnings

530,928



583,407



562,799


Accumulated other comprehensive loss

(24,440)



(36,941)



(29,219)


Total shareholders' equity

1,530,849



1,353,285



1,333,588


Total liabilities and shareholders' equity

$

13,845,084



10,493,908



10,505,483








Equity to assets

11.06

%


12.90

%


12.69

%

Tangible common equity to assets

8.35

%


9.72

%


9.52

%

Book value per share

$

11.97



12.66



12.51


Tangible book value per share

$

8.77



9.21



9.05


Closing market price per share

$

10.23



16.63



17.61


Full time equivalent employees

2,518



2,209



2,238


Number of banking offices

213



181



182



 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)



Quarter ended


June 30,
2020


March 31,
2020


December 31,
2019


September 30,
2019


June 30,
2019






Interest income:










Loans receivable

$

103,012



94,973



97,866



101,091



100,917


Mortgage-backed securities

4,038



4,175



4,237



4,188



4,280


Taxable investment securities

439



648



683



884



898


Tax-free investment securities

564



185



201



224



237


FHLB dividends

309



262



262



307



316


Interest-earning deposits

185



135



169



172



159


Total interest income

108,547



100,378



103,418



106,866



106,807


Interest expense:










Deposits

9,336



11,403



12,893



13,694



12,484


Borrowed funds

1,133



1,747



1,580



2,236



1,720


Total interest expense

10,469



13,150



14,473



15,930



14,204


Net interest income

98,078



87,228



88,945



90,936



92,603


   Provision for credit losses

51,750



27,637



8,223



3,302



4,667


Net interest income after provision for credit losses

46,328



59,591



80,722



87,634



87,936


Noninterest income:










Gain/(loss) on sale of investments

(8)



181



27





29


Gain on sale of loans



1,302



908



826




Service charges and fees

13,069



15,116



14,125



13,558



13,339


Trust and other financial services income

4,823



5,001



4,517



4,609



4,444


Insurance commission income

2,395



2,372



1,858



1,887



2,145


Gain/(loss) on real estate owned, net

(97)



(91)



86



(227)



91


Income from bank-owned life insurance

1,248



1,036



1,121



1,095



1,197


Mortgage banking income

12,022



1,194



1,494



1,921



188


Other operating income

2,044



1,865



4,077



2,500



1,930


Total noninterest income

35,496



27,976



28,213



26,169



23,363


Noninterest expense:










Compensation and employee benefits

40,049



42,746



42,074



40,816



42,008


Premises and occupancy costs

7,195



7,471



7,051



7,061



7,387


Office operations

3,711



3,382



4,097



3,197



3,708


Collections expense

644



474



566



747



939


Processing expenses

11,680



11,142



10,263



11,122



10,634


Marketing expenses

2,047



1,507



1,010



1,373



2,729


Federal deposit insurance premiums

1,618







(702)



681


Professional services

2,825



2,812



3,533



3,032



3,198


Amortization of intangible assets

1,760



1,651



1,634



1,702



1,760


Real estate owned expense

89



95



72



119



128


Restructuring/acquisition expense

9,679



2,458



1,114



23



1,105


Other expenses

7,866



4,873



5,157



2,106



3,235


Total noninterest expense

89,163



78,611



76,571



70,596



77,512


Income/(loss) before income taxes

(7,339)



8,956



32,364



43,207



33,787


Income tax expense/(benefit)

(1,139)



1,017



6,773



9,793



7,404


Net income/(loss)

(6,200)



7,939



25,591



33,414



26,383












Basic earnings per share

$

(0.05)



0.08



0.24



0.32



0.25


Diluted earnings per share

$

(0.05)



0.07



0.24



0.31



0.25












Weighted average common shares outstanding - basic

121,480,563



105,882,553



105,627,194



105,517,707



105,233,635


Weighted average common shares outstanding - diluted

121,480,563



106,148,247



106,306,615



106,270,544



106,258,215












Annualized return on average equity

(1.63)

%


2.37

%


7.52

%


9.90

%


8.01

%

Annualized return on average assets

(0.18)

%


0.30

%


0.97

%


1.25

%


1.02

%

Annualized return on tangible common equity **

(2.22)

%


3.28

%


10.32

%


13.46

%


10.97

%











Efficiency ratio *

58.19

%


64.67

%


63.01

%


58.81

%


64.37

%

Annualized noninterest expense to average assets *

2.30

%


2.83

%


2.80

%


2.59

%


2.88

%


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

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

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)



Six months ended June 30,


2020


2019

Interest income:




Loans receivable

$

197,985



195,852


Mortgage-backed securities

8,213



8,245


Taxable investment securities

1,087



1,834


Tax-free investment securities

749



419


FHLB dividends

571



487


Interest-earning deposits

320



259


Total interest income

208,925



207,096


Interest expense:




Deposits

20,739



22,629


Borrowed funds

2,880



3,882


Total interest expense

23,619



26,511


Net interest income

185,306



180,585


Provision for credit losses

79,387



11,134


Net interest income after provision for credit losses

105,919



169,451


Noninterest income:




Gain on sale of investments

173



23


Gain on sale of loans

1,302




Service charges and fees

28,185



25,382


Trust and other financial services income

9,824



8,639


Insurance commission income

4,767



4,323


Gain/(loss) on real estate owned, net

(188)



88


Income from bank-owned life insurance

2,284



2,202


Mortgage banking income

13,216



404


Other operating income

3,909



3,964


Total noninterest income

63,472



45,025


Noninterest expense:




Compensation and employee benefits

82,795



80,196


Premises and occupancy costs

14,666



14,605


Office operations

7,093



6,839


Collections expense

1,118



1,247


Processing expenses

22,822



21,068


Marketing expenses

3,554



4,615


Federal deposit insurance premiums

1,618



1,387


Professional services

5,637



5,722


Amortization of intangible assets

3,411



3,207


Real estate owned expense

184



287


Restructuring/acquisition expense

12,137



3,031


Other expenses

12,739



6,732


Total noninterest expense

167,774



148,936


Income before income taxes

1,617



65,540


Income tax expense/(benefit)

(122)



14,113


Net income

$

1,739



51,427






Basic earnings per share

$

0.02



0.49


Diluted earnings per share

$

0.02



0.49






Weighted average common shares outstanding - basic

113,672,131



104,173,601


Weighted average common shares outstanding - diluted

113,774,339



105,382,270






Annualized return on average equity

0.24

%


7.99

%

Annualized return on average assets

0.03

%


1.02

%

Annualized return on tangible common equity **

0.31

%


10.75

%





Efficiency ratio *

61.19

%


63.25

%

Annualized noninterest expense to average assets *

2.53

%


2.84

%


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

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

 

Northwest Bancshares, Inc. and Subsidiaries

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

(dollars in thousands, except per share amounts)



Quarter ended June 30,


Six months ended June 30,


2020


2019


2020


2019

Operating results (non-GAAP):








Net interest income

$

98,078



92,603



185,306



180,585


Provision for credit losses

12,279



4,667



16,203



11,134


Noninterest income

35,496



23,363



63,472



45,025


Noninterest expense

83,368



76,407



157,637



145,905


Income taxes

7,708



7,657



14,216



14,807


Net operating income (non-GAAP)

$

30,219



27,235



60,722



53,764


Diluted earnings per share (non-GAAP)

$

0.25



0.26



0.53



0.51










Average equity

$

1,528,868



1,320,382



1,439,489



1,298,334


Average assets

13,590,131



10,412,664



12,093,801



10,150,040


Annualized return on average equity (non-GAAP)

7.95

%


8.27

%


8.48

%


8.35

%

Annualized return on average assets (non-GAAP)

0.89

%


1.05

%


1.01

%


1.07

%









Reconciliation of net operating income to net income:








Net operating income (non-GAAP)

$

30,219



27,235



60,722



53,764


Non-GAAP adjustments, net of tax:








COVID-related provision **

(17,121)





(36,189)




CECL provision impact due to acquisition of MutualBank

(14,618)





(14,618)




PPP deferred origination costs

3,389





3,389




COVID-related off balance sheet provision **

(266)





(1,780)




Restructuring/acquisition expense

(7,803)



(852)



(9,785)



(2,337)


Net income/(loss) (GAAP)

$

(6,200)



26,383



1,739



51,427


Diluted earnings per share (GAAP)

$

(0.05)



0.25



0.02



0.49










Annualized return on average equity (GAAP)

(1.63)

%


8.01

%


0.24

%


7.99

%

Annualized return on average assets (GAAP)

(0.18)

%


1.02

%


0.03

%


1.02

%


*  

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

**

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


 

Northwest Bancshares, Inc. and Subsidiaries

Regulatory capital requirements (Unaudited)

(dollars in thousands)



At June 30, 2020


Actual


Minimum capital
requirements (1)


Well capitalized
requirements 


Amount


Ratio


Amount


Ratio


Amount


Ratio

Total capital (to risk weighted assets)












Northwest Bancshares, Inc.

$

1,521,506



14.454

%


$

1,105,299



10.500

%


$

1,052,666



10.000

%

Northwest Bank

1,409,018



13.397

%


1,104,346



10.500

%


1,051,759



10.000

%













Tier 1 capital (to risk weighted assets)












Northwest Bancshares, Inc.

1,383,261



13.141

%


894,766



8.500

%


842,133



8.000

%

Northwest Bank

1,270,773



12.082

%


893,995



8.500

%


841,407



8.000

%













Common equity tier 1 capital (to risk weighted assets)












Northwest Bancshares, Inc.

1,258,620



11.957

%


736,866



7.000

%


684,233



6.500

%

Northwest Bank

1,270,773



12.082

%


736,231



7.000

%


683,643



6.500

%













Tier 1 capital (leverage)  (to average assets)












Northwest Bancshares, Inc.

1,383,261



10.488

%


527,571



4.000

%


659,464



5.000

%

Northwest Bank

1,270,773



9.680

%


525,093



4.000

%


656,366



5.000

%


(1)

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

 

Northwest Bancshares, Inc. and Subsidiaries

Marketable securities (Unaudited)

(dollars in thousands)




June 30, 2020

Marketable securities available-for-sale


Amortized cost


Gross unrealized
holding gains


Gross unrealized
holding losses


Fair value

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









Due after ten years


$

10,000



112





10,112











   Debt issued by government sponsored enterprises:









   Due in less than one year


35,751



228





35,979


   Due in one year through five years


25,225



292





25,517


   Due in five years through ten years


13,302



134



(93)



13,343











   Municipal securities:









   Due in less than one year


3,634



5





3,639


   Due in one year through five years


4,005



95



(3)



4,097


   Due in five years through ten years


8,489



228





8,717


   Due after ten years


96,640



2,785



(7)



99,418











   Residential mortgage-backed securities:









   Fixed rate pass-through


324,026



5,782



(230)



329,578


   Variable rate pass-through


17,190



585



(14)



17,761


   Fixed rate agency CMOs


586,290



13,320



(788)



598,822


   Variable rate agency CMOs


51,706



165



(62)



51,809


   Total residential mortgage-backed securities


979,212



19,852



(1,094)



997,970


   Total marketable securities available-for-sale


$

1,176,258



23,731



(1,197)



1,198,792











Marketable securities held-to-maturity









   Residential mortgage-backed securities:









   Fixed rate pass-through


$

1,969



126





2,095


   Variable rate pass-through


1,058



38





1,096


   Fixed rate agency CMOs


12,784



658





13,442


   Variable rate agency CMOs


604



8





612


   Total residential mortgage-backed securities


16,415



830





17,245


   Total marketable securities held-to-maturity


$

16,415



830





17,245


 

Northwest Bancshares, Inc. and Subsidiaries

Borrowed funds (Unaudited)

(dollars in thousands)



June 30, 2020


Amount


Average rate

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




   Payable to FHLB of Pittsburgh

$

100,000



0.48

%

   Payable to the FHLB of Indianapolis acquired from MutualBank

200,481



1.65

%

      Total term notes payable to the FHLB

300,481




Collateralized borrowings, due within one year

139,598



0.29

%

      Total borrowed funds *

$

440,079





*

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

 

Northwest Bancshares, Inc. and Subsidiaries

Asset quality (Unaudited)

(dollars in thousands)



June 30,
2020


March 31,
2020


December 31,
2019


September 30,
2019


June 30,
2019

Nonaccrual loans current:










Residential mortgage loans

$

413



285



72



676



432


Home equity loans

481



592



197



607



475


Consumer loans

214



77



78



68



94


Commercial real estate loans

30,677



14,337



9,241



7,674



12,605


Commercial loans

6,551



3,514



3,424



3,777



5,666


Total nonaccrual loans current

$

38,336



18,805



13,012



12,802



19,272


Nonaccrual loans delinquent 30 days to 59 days:










Residential mortgage loans

$

61



691



674



40



13


Home equity loans

247



159



224



102



418


Consumer loans

335



143



121



246



172


Commercial real estate loans

2,372



496



196



925



469


Commercial loans





55



44



45


Total nonaccrual loans delinquent 30 days to 59 days

$

3,015



1,489



1,270



1,357



1,117


Nonaccrual loans delinquent 60 days to 89 days:










Residential mortgage loans

$

1,013



218



1,048



979



910


Home equity loans

960



539



689



436



717


Consumer loans

666



488



417



426



322


Commercial real estate loans

163



2,096



413



536



1,426


Commercial loans

768



37



341





780


Total nonaccrual loans delinquent 60 days to 89 days

$

3,570



3,378



2,908



2,377



4,155


Nonaccrual loans delinquent 90 days or more:










Residential mortgage loans

$

15,369



10,457



12,682



11,722



10,617


Home equity loans

7,060



5,816



5,635



5,966



5,591


Consumer loans

6,896



3,459



3,610



3,400



2,902


Commercial real estate loans

29,729



25,342



25,014



22,292



21,123


Commercial loans

11,535



16,685



4,739



5,741



2,920


Total nonaccrual loans delinquent 90 days or more

$

70,589



61,759



51,680



49,121



43,153


Total nonaccrual loans

$

115,510



85,431



68,870



65,657



67,697


Total nonaccrual loans

$

115,510



85,431



68,870



65,657



67,697


Loans 90 days past maturity and still accruing

77



31



32



85



55


Nonperforming loans

115,587



85,462



68,902



65,742



67,752


Real estate owned, net

1,897



1,075



950



1,237



2,070


Nonperforming assets

$

117,484



86,537



69,852



66,979



69,822


Nonaccrual troubled debt restructuring *

$

17,562



17,375



9,043



9,138



13,375


Accruing troubled debt restructuring

17,888



15,977



22,956



21,162



17,894


Total troubled debt restructuring

$

35,450



33,352



31,999



30,300



31,269












Nonperforming loans to total loans

1.06

%


0.97

%


0.78

%


0.74

%


0.78

%

Nonperforming assets to total assets

0.85

%


0.81

%


0.67

%


0.63

%


0.66

%

Allowance for credit losses to total loans

1.29

%


1.05

%


0.66

%


0.60

%


0.61

%

Allowance for total loans excluding PPP loan balances

1.36

%


N/A


N/A


N/A


N/A

Allowance for credit losses to nonperforming loans

121.63

%


108.70

%


84.09

%


80.40

%


78.38

%


*    Amounts included in nonperforming loans above.

 

Northwest Bancshares, Inc. and Subsidiaries

Loans by credit quality indicators (Unaudited)

(dollars in thousands)


At June 30, 2020


Pass


Special
   mention *


Substandard
**


Doubtful
***


Loss


Loans
receivable

Personal Banking:













  Residential mortgage loans


$

3,196,304





26,451







3,222,755


  Home equity loans


1,438,339





12,031







1,450,370


  Consumer loans


1,508,129





9,990







1,518,119


Total Personal Banking


6,142,772





48,472







6,191,244


Commercial Banking:













  Commercial real estate loans


3,034,984



72,755



199,993



1,092





3,308,824


  Commercial loans


1,270,279



41,458



42,692



4,290





1,358,719


Total Commercial Banking


4,305,263



114,213



242,685



5,382





4,667,543


Total loans


$

10,448,035



114,213



291,157



5,382





10,858,787


At March 31, 2020













Personal Banking:













  Residential mortgage loans


$

2,830,596





7,690







2,838,286


  Home equity loans


1,345,052





8,211







1,353,263


  Consumer loans


1,174,067





3,988







1,178,055


Total Personal Banking


5,349,715





19,889







5,369,604


Commercial Banking:













  Commercial real estate loans


2,537,736



73,967



143,765







2,755,468


  Commercial loans


618,267



43,071



50,464







711,802


Total Commercial Banking


3,156,003



117,038



194,229







3,467,270


Total loans


$

8,505,718



117,038



214,118







8,836,874


At December 31, 2019













Personal Banking:













  Residential mortgage loans


$

2,858,582





9,545







2,868,127


  Home equity loans


1,336,111





6,807







1,342,918


  Consumer loans


1,120,732





4,400







1,125,132


Total Personal Banking


5,315,425





20,752







5,336,177


Commercial Banking:













  Commercial real estate loans


2,538,816



80,570



135,004







2,754,390


  Commercial loans


616,983



42,380



58,744







718,107


Total Commercial Banking


3,155,799



122,950



193,748







3,472,497


Total loans


$

8,471,224



122,950



214,500







8,808,674


At September 30, 2019













Personal Banking:













  Residential mortgage loans


$

2,887,077





9,056







2,896,133


  Home equity loans


1,320,930





7,243







1,328,173


  Consumer loans


1,090,030





4,263







1,094,293


Total Personal Banking


5,298,037





20,562







5,318,599


Commercial Banking:













  Commercial real estate loans


2,601,025



69,380



142,253



181





2,812,839


  Commercial loans


639,998



37,666



42,800



115





720,579


Total Commercial Banking


3,241,023



107,046



185,053



296





3,533,418


Total loans


$

8,539,060



107,046



205,615



296





8,852,017


At June 30, 2019













Personal Banking:













  Residential mortgage loans


$

2,890,472





8,692







2,899,164


  Home equity loans


1,307,887





7,060







1,314,947


  Consumer loans


1,007,813





3,611







1,011,424


Total Personal Banking


5,206,172





19,363







5,225,535


Commercial Banking:













  Commercial real estate loans


2,586,013



86,434



135,525



181





2,808,153


  Commercial loans


621,889



38,182



42,141



982





703,194


Total Commercial Banking


3,207,902



124,616



177,666



1,163





3,511,347


Total loans


$

8,414,074