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

Company Release - 10/26/2020 9:00 AM ET

WARREN, Pa., Oct. 26, 2020 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2020 of $38.1 million, or $0.30 per diluted share.  This represents an increase of $4.6 million, or 13.9%, compared to the same quarter last year when net income was $33.4 million, or $0.31 per diluted share.  The annualized returns on average shareholders' equity and average assets for the quarter ended September 30, 2020 were 9.82% and 1.09% compared to 9.90% and 1.25% for the same quarter last year. As noted in the non-GAAP reconciliation, when adjusting for COVID-related provision expense and branch optimization related costs, non-GAAP net income was approximately $40.1 million, or $0.32 per diluted share, which would represent an increase over the same quarter in the prior year of $6.7 million, or 20.0%, and result in a return on average shareholders' equity of 10.36% and a return on average assets of 1.15%.

(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 November 16, 2020 to shareholders of record as of November 5, 2020.  This is the 104th consecutive quarter in which the Company has paid a cash dividend.  Based on the market value of the Company's common stock as of September 30, 2020, this represents an annualized dividend yield of approximately 8.26%.

In making this announcement, Ronald J. Seiffert, Chairman, President and CEO, noted, "We are very pleased with the many positive results in the current quarter beginning once again with strong fee income led by our mortgage banking operations.  We are also delighted to report that our credit loss provision decreased significantly from the first and second quarters, as expected, and essentially mirrored net charge-offs in the third quarter.  From a credit quality perspective, delinquencies continue to be well maintained and loans requesting payment deferrals have decreased significantly from last quarter from $1.312 billion, or 12.1% of the loan portfolio, at June 30, 2020 to just $212.7 million, or 2.0%, at September 30, 2020.  Although classified assets jumped by $161.3 million, or 54.4%, during the quarter to $457.8 million, over 45% of total classified assets are in the hotel/hospitality industry with virtually all the increase attributable to downgrades in this sector as second deferral requests were considered."

Mr. Seiffert continued, "Looking ahead, we are anxious to execute upon the initiatives we have set in motion this year including branch optimization to be completed in December, the continued implementation of our digital strategy and capitalizing on our very successful subordinated debt offering."

Net interest income increased by $12.6 million, or 13.9%, to $103.5 million for the quarter ended September 30, 2020, from $90.9 million for the quarter ended September 30, 2019, largely due to a $6.2 million, or 6.1%, increase in interest income on loans receivable.  This increase in interest income was mainly due to an increase of $2.031 billion, or 23.2%, in the average balance of loans, primarily as a result of the acquisition of MutualBank during the second quarter of 2020.  Also contributing to this increase in net interest income was a decrease of $6.1 million, or 38.0%, in total interest expense 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 0.42% for the quarter ended September 30, 2020 from 0.89% for the quarter ended September 30, 2019. Despite the overall increase in net interest income, net interest margin decreased to 3.26% for the quarter ended September 30, 2020 from 3.79% for the same quarter last year as interest earning asset yields decreased to 3.55% for the quarter ended September 30, 2020 from 4.41% for the quarter ended September 30, 2019. Contributing to the decline in asset yields was the increase in average cash balances of $762.8 million, earning just 0.11%, due to deposit growth associated with Payroll Protection Program ("PPP") loan funds and consumer stimulus checks. In addition, PPP loan balances of approximately $500 million with coupon rates of 1.00%, have negatively impacted overall interest earning asset yields.

The provision for credit losses increased by $3.5 million to $6.8 million for the quarter ended September 30, 2020, from $3.3 million for the quarter ended September 30, 2019.  During the current year, the Company adopted ASU 2016-13, referred to as Current Expected Credit Losses ("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 $1.5 million.  Finally, total classified loans have increased to $457.8 million, or 4.25% of total loans, at September 30, 2020 from $205.9 million, or 2.33% of total loans, as of September 30, 2019.

Noninterest income increased by $10.5 million, or 40.1%, to $36.7 million for the quarter ended September 30, 2020, from $26.2 million for the quarter ended September 30, 2019.  This increase was primarily due to the increase in mortgage banking income of $9.1 million to $11.1 million for the quarter ended September 30, 2020 from $1.9 million for the quarter ended September 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 $796,000, or 5.9%, increase in service charges and fees and a $767,000, or 16.6%, increase in trust and other financial services income, both primarily due to additional fee income as a result of the acquisition of MutualBank.

Noninterest expense increased by $16.3 million, or 23.1%, to $86.9 million for the quarter ended September 30, 2020, from $70.6 million for the quarter ended September 30, 2019.  This increase resulted primarily from an increase of $6.6 million, or 16.1%, in compensation and employee benefits due to both internal growth in compensation and staff as well as the addition of MutualBank employees.  Also contributing to this increase was an increase of $3.9 million, or 35.2%, in processing expenses as we continue to invest in technology and infrastructure and as activity driven utilization fees for online and mobile banking and loan origination platforms has increased.  Lastly, FDIC insurance premiums increased $2.2 million due to assessment credits received in the previous year.

The provision for income taxes decreased by $1.3 million, or 13.5%, to $8.5 million for the quarter ended September 30, 2020, from $9.8 million for the quarter ended September 30, 2019.  This decrease was due primarily to a lower annual effective tax rate as a result of the lower year-to-date income before taxes in the current year as well as a change in state tax apportionment.

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 September 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)

 


September 30,
2020


December 31,
2019


September 30,
2019

Assets






Cash and cash equivalents

$

656,749



60,846



107,602


Marketable securities available-for-sale (amortized cost of $1,385,835, $815,495 and $801,465, respectively)

1,409,150



819,901



807,823


Marketable securities held-to-maturity (fair value of $16,168, $18,223 and $19,237, respectively)

15,333



18,036



18,958


Total cash and cash equivalents and marketable securities

2,081,232



898,783



934,383


Residential mortgage loans held-for-sale

25,140



7,709



8,859


Residential mortgage loans

3,118,229



2,860,418



2,887,274


Home equity loans

1,484,365



1,342,918



1,328,173


Consumer loans

1,487,083



1,125,132



1,094,293


Commercial real estate loans

3,319,743



2,754,390



2,812,839


Commercial loans

1,347,292



718,107



720,579


Total loans receivable

10,781,852



8,808,674



8,852,017


Allowance for credit losses

(140,209)



(57,941)



(52,859)


Loans receivable, net

10,641,643



8,750,733



8,799,158








Federal Home Loan Bank stock, at cost

23,171



14,740



21,401


Accrued interest receivable

36,916



25,755



27,069


Real estate owned, net

2,575



950



1,237


Premises and equipment, net

166,919



147,409



148,796


Bank-owned life insurance

252,621



189,091



187,971


Goodwill

386,044



346,103



344,720


Other intangible assets, net

21,601



23,076



22,410


Other assets

176,083



97,268



93,329


Total assets

$

13,788,805



10,493,908



10,580,474


Liabilities and shareholders' equity






Liabilities






Noninterest-bearing demand deposits

$

2,641,234



1,609,653



1,905,650


Interest-bearing demand deposits

2,663,878



1,944,108



1,678,644


Money market deposit accounts

2,396,567



1,863,998



1,828,001


Savings deposits

2,022,918



1,604,838



1,635,754


Time deposits

1,732,022



1,569,410



1,633,451


Total deposits

11,456,619



8,592,007



8,681,500








Borrowed funds

398,216



246,336



255,257


Junior subordinated debentures

128,729



121,800



121,787


Advances by borrowers for taxes and insurance

29,755



44,556



24,331


Accrued interest payable

1,002



1,142



1,314


Other liabilities

227,253



134,782



144,515


Total liabilities

12,241,574



9,140,623



9,228,704


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, 127,801,297, 106,859,088, and 106,658,067 shares issued and outstanding, respectively

1,278



1,069



1,067


Paid-in capital

1,023,827



805,750



801,382


Retained earnings

544,695



583,407



577,018


Accumulated other comprehensive loss

(22,569)



(36,941)



(27,697)


Total shareholders' equity

1,547,231



1,353,285



1,351,770


Total liabilities and shareholders' equity

$

13,788,805



10,493,908



10,580,474








Equity to assets

11.22

%


12.90

%


12.78

%

Tangible common equity to assets

8.52

%


9.72

%


9.64

%

Book value per share

$

12.11



12.66



12.67


Tangible book value per share

$

8.92



9.21



9.23


Closing market price per share

$

9.20



16.63



16.39


Full time equivalent employees

2,523



2,209



2,218


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


September 30,
2020


June 30,
2020


March 31,
2020


December 31,
2019


September 30,
2019






Interest income:










Loans receivable

$

107,241



103,012



94,973



97,866



101,091


Mortgage-backed securities

4,652



4,038



4,175



4,237



4,188


Taxable investment securities

427



439



648



683



884


Tax-free investment securities

655



564



185



201



224


FHLB dividends

218



309



262



262



307


Interest-earning deposits

221



185



135



169



172


Total interest income

113,414



108,547



100,378



103,418



106,866


Interest expense:










Deposits

8,443



9,336



11,403



12,893



13,694


Borrowed funds

1,437



1,133



1,747



1,580



2,236


Total interest expense

9,880



10,469



13,150



14,473



15,930


Net interest income

103,534



98,078



87,228



88,945



90,936


   Provision for credit losses

6,818



51,750



27,637



8,223



3,302


Net interest income after provision for credit losses

96,716



46,328



59,591



80,722



87,634


Noninterest income:










Gain/(loss) on sale of investments

(12)



(8)



181



27




Gain on sale of loans





1,302



908



826


Service charges and fees

14,354



13,069



15,116



14,125



13,558


Trust and other financial services income

5,376



4,823



5,001



4,517



4,609


Insurance commission income

2,331



2,395



2,372



1,858



1,887


Gain/(loss) on real estate owned, net

(32)



(97)



(91)



86



(227)


Income from bank-owned life insurance

1,576



1,248



1,036



1,121



1,095


Mortgage banking income

11,055



12,022



1,194



1,494



1,921


Other operating income

2,022



2,044



1,865



4,077



2,500


Total noninterest income

36,670



35,496



27,976



28,213



26,169


Noninterest expense:










Compensation and employee benefits

47,371



40,049



42,746



42,074



40,816


Premises and occupancy costs

8,342



7,195



7,471



7,051



7,061


Office operations

4,626



3,711



3,382



4,097



3,197


Collections expense

1,264



644



474



566



747


Processing expenses

15,042



11,680



11,142



10,263



11,122


Marketing expenses

2,147



2,047



1,507



1,010



1,373


Federal deposit insurance premiums

1,498



1,618







(702)


Professional services

3,246



2,825



2,812



3,533



3,032


Amortization of intangible assets

1,781



1,760



1,651



1,634



1,702


Real estate owned expense

111



89



95



72



119


Acquisition/branch optimization expense

1,414



9,679



2,458



1,114



23


Other expenses

27



7,866



4,873



5,157



2,106


Total noninterest expense

86,869



89,163



78,611



76,571



70,596


Income/(loss) before income taxes

46,517



(7,339)



8,956



32,364



43,207


Income tax expense/(benefit)

8,467



(1,139)



1,017



6,773



9,793


Net income/(loss)

$

38,050



(6,200)



7,939



25,591



33,414












Basic earnings per share

$

0.30



(0.05)



0.08



0.24



0.32


Diluted earnings per share

$

0.30



(0.05)



0.07



0.24



0.31












Weighted average common shares outstanding - basic

126,855,810



121,480,563



105,882,553



105,627,194



105,517,707


Weighted average common shares outstanding - diluted

126,855,810



121,480,563



106,148,247



106,306,615



106,270,544












Annualized return on average equity

9.82

%


(1.63)

%


2.37

%


7.52

%


9.90

%

Annualized return on average assets

1.09

%


(0.18)

%


0.30

%


0.97

%


1.25

%

Annualized return on tangible common equity **

13.28

%


(2.22)

%


3.28

%


10.32

%


13.46

%











Efficiency ratio *

59.68

%


58.19

%


64.67

%


63.01

%


58.81

%

Annualized noninterest expense to average assets *

2.39

%


2.30

%


2.83

%


2.80

%


2.59

%

*    Excludes acquisition/branch optimization 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)

 


Nine months ended September 30,


2020


2019

Interest income:




Loans receivable

$

305,226



296,943


Mortgage-backed securities

12,865



12,433


Taxable investment securities

1,514



2,718


Tax-free investment securities

1,404



643


FHLB dividends

789



794


Interest-earning deposits

541



431


Total interest income

322,339



313,962


Interest expense:




Deposits

29,182



36,323


Borrowed funds

4,317



6,118


Total interest expense

33,499



42,441


Net interest income

288,840



271,521


Provision for credit losses

86,205



14,436


Net interest income after provision for credit losses

202,635



257,085


Noninterest income:




Gain on sale of investments

161



23


Gain on sale of loans

1,302



826


Service charges and fees

42,539



38,940


Trust and other financial services income

15,200



13,248


Insurance commission income

7,098



6,210


Loss on real estate owned, net

(220)



(139)


Income from bank-owned life insurance

3,860



3,297


Mortgage banking income

24,271



2,325


Other operating income

5,931



6,464


Total noninterest income

100,142



71,194


Noninterest expense:




Compensation and employee benefits

130,166



121,012


Premises and occupancy costs

23,008



21,666


Office operations

11,719



10,036


Collections expense

2,382



1,994


Processing expenses

37,864



32,190


Marketing expenses

5,701



5,988


Federal deposit insurance premiums

3,116



685


Professional services

8,883



8,754


Amortization of intangible assets

5,192



4,909


Real estate owned expense

295



406


Acquisition/branch optimization expense

13,551



3,054


Other expenses

12,766



8,838


Total noninterest expense

254,643



219,532


Income before income taxes

48,134



108,747


Income tax expense

8,345



23,906


Net income

$

39,789



84,841






Basic earnings per share

$

0.34



0.81


Diluted earnings per share

$

0.34



0.80






Weighted average common shares outstanding - basic

118,088,122



104,626,560


Weighted average common shares outstanding - diluted

118,088,122



105,681,615






Annualized return on average equity

3.33

%


8.65

%

Annualized return on average assets

0.42

%


1.10

%

Annualized return on tangible common equity **

4.66

%


11.52

%





Efficiency ratio *

60.65

%


61.73

%

Annualized noninterest expense to average assets *

2.50

%


2.75

%

*    Excludes acquisition/branch optimization 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 September 30,


Nine months ended September 30,


2020


2019


2020


2019

Operating results (non-GAAP):








Net interest income

$

103,534



90,936



288,840



271,521


Provision for credit losses

5,349



3,302



21,551



14,436


Noninterest income

36,670



26,169



100,142



71,194


Noninterest expense

85,455



70,573



243,092



216,478


Income taxes

9,274



9,799



29,682



24,761


Net operating income (non-GAAP)

$

40,126



33,431



94,657



87,040


Diluted earnings per share (non-GAAP)

$

0.32



0.31



0.80



0.82










Average equity

$

1,540,934



1,339,339



1,596,252



1,312,002


Average assets

13,903,655



10,568,279



12,590,018



10,289,453


Annualized return on average equity (non-GAAP)

10.36

%


9.90

%


7.92

%


8.87

%

Annualized return on average assets (non-GAAP)

1.15

%


1.26

%


1.00

%


1.13

%









Reconciliation of net operating income to net income:








Net operating income (non-GAAP)

$

40,126



33,431



94,657



87,040


Non-GAAP adjustments, net of tax:








COVID-related provision **

(1,058)





(33,462)




CECL provision impact due to acquisition of MutualBank





(13,089)




PPP deferred origination costs





3,034




COVID-related off balance sheet provision **





(1,594)




Acquisition/branch optimization expense

(1,018)



(17)



(9,757)



(2,199)


Net income (GAAP)

$

38,050



33,414



39,789



84,841


Diluted earnings per share (GAAP)

$

0.30



0.31



0.34



0.80










Annualized return on average equity (GAAP)

9.82

%


9.90

%


3.33

%


8.65

%

Annualized return on average assets (GAAP)

1.09

%


1.25

%


0.42

%


1.10

%

*

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 acquisition/branch optimization expense. The net tax effect was calculated using statutory tax rates of approximately 28.0%. The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.

**

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


 

Northwest Bancshares, Inc. and Subsidiaries
Regulatory Capital Requirements (Unaudited)
(dollars in thousands)

 


At September 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.

$

1,655,949



16.607

%


$

1,046,981



10.500

%


$

997,125



10.000

%

Northwest Bank

1,445,508



14.512

%


1,045,896



10.500

%


996,092



10.000

%













Tier 1 capital (to risk weighted assets)












Northwest Bancshares, Inc.

1,521,913



15.263

%


847,556



8.500

%


797,700



8.000

%

Northwest Bank

1,311,472



13.166

%


846,678



8.500

%


796,873



8.000

%













Common equity tier 1 capital (to risk weighted assets)












Northwest Bancshares, Inc.

1,273,896



12.776

%


697,988



7.000

%


648,131



6.500

%

Northwest Bank

1,311,472



13.166

%


697,264



7.000

%


647,460



6.500

%













Tier 1 capital (leverage)  (to average assets)












Northwest Bancshares, Inc.

1,521,913



10.977

%


554,608



4.000

%


693,260



5.000

%

Northwest Bank

1,311,472



9.522

%


550,907



4.000

%


688,634



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)

 



September 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


$

34,000



176





34,176











   Debt issued by government sponsored enterprises:









   Due in less than one year


35,731



284





36,015


   Due in one year through five years


253



4





257


   Due in five years through ten years


69,135



170



(178)



69,127











   Municipal securities:









   Due in less than one year


4,241



18





4,259


   Due in one year through five years


3,343



73



(2)



3,414


   Due in five years through ten years


11,077



312





11,389


   Due after ten years


92,530



2,930





95,460











   Residential mortgage-backed securities:









   Fixed rate pass-through


356,898



6,467



(102)



363,263


   Variable rate pass-through


15,798



538



(18)



16,318


   Fixed rate agency CMOs


710,620



13,035



(722)



722,933


   Variable rate agency CMOs


52,209



369



(39)



52,539


   Total residential mortgage-backed securities


1,135,525



20,409



(881)



1,155,053


   Total marketable securities available-for-sale


$

1,385,835



24,376



(1,061)



1,409,150











Marketable securities held-to-maturity









   Residential mortgage-backed securities:









   Fixed rate pass-through


$

1,823



128





1,951


   Variable rate pass-through


970



33





1,003


   Fixed rate agency CMOs


11,936



659





12,595


   Variable rate agency CMOs


604



15





619


   Total residential mortgage-backed securities


15,333



835





16,168


   Total marketable securities held-to-maturity


$

15,333



835





16,168



 

Northwest Bancshares, Inc. and Subsidiaries
Borrowed Funds (Unaudited)
(dollars in thousands)

 


September 30, 2020


Amount


Average rate

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




   Payable to FHLB of Pittsburgh

$

30,000



0.40

%

   Payable to the FHLB of Indianapolis acquired from MutualBank

118,107



1.70

%

      Total term notes payable to the FHLB

148,107




Collateralized borrowings, due within one year

126,832



0.19

%

Subordinated debentures, net of issuance costs

$

123,277



4.00

%

      Total borrowed funds *

$

398,216




As of September 30, 2020, the Company had $3.8 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 $103.0 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)

 


September 30,
2020


June 30,
2020


March 31,
2020


December 31,
2019


September 30,
2019

Nonaccrual loans current:










Residential mortgage loans

$

1,128



413



285



72



676


Home equity loans

366



481



592



197



607


Consumer loans

234



214



77



78



68


Commercial real estate loans

22,610



30,677



14,337



9,241



7,674


Commercial loans

6,488



6,551



3,514



3,424



3,777


Total nonaccrual loans current

$

30,826



38,336



18,805



13,012



12,802


Nonaccrual loans delinquent 30 days to 59 days:










Residential mortgage loans

$

60



61



691



674



40


Home equity loans

445



247



159



224



102


Consumer loans

230



335



143



121



246


Commercial real estate loans

692



2,372



496



196



925


Commercial loans

57







55



44


Total nonaccrual loans delinquent 30 days to 59 days

$

1,484



3,015



1,489



1,270



1,357


Nonaccrual loans delinquent 60 days to 89 days:










Residential mortgage loans

$

576



1,013



218



1,048



979


Home equity loans

618



960



539



689



436


Consumer loans

781



666



488



417



426


Commercial real estate loans

2,745



163



2,096



413



536


Commercial loans

15



768



37



341




Total nonaccrual loans delinquent 60 days to 89 days

$

4,735



3,570



3,378



2,908



2,377


Nonaccrual loans delinquent 90 days or more:










Residential mortgage loans

$

14,750



15,369



10,457



12,682



11,722


Home equity loans

7,845



7,060



5,816



5,635



5,966


Consumer loans

5,352



6,896



3,459



3,610



3,400


Commercial real estate loans

35,496



29,729



25,342



25,014



22,292


Commercial loans

6,310



11,535



16,685



4,739



5,741


Total nonaccrual loans delinquent 90 days or more

$

69,753



70,589



61,759



51,680



49,121


Total nonaccrual loans

$

106,798



115,510



85,431



68,870



65,657


Total nonaccrual loans

$

106,798



115,510



85,431



68,870



65,657


Loans 90 days past due and still accruing

495



77



31



32



85


Nonperforming loans

107,293



115,587



85,462



68,902



65,742


Real estate owned, net

2,575



1,897



1,075



950



1,237


Nonperforming assets

$

109,868



117,484



86,537



69,852



66,979


Nonaccrual troubled debt restructuring *

$

17,120



17,562



17,375



9,043



9,138


Accruing troubled debt restructuring

17,684



17,888



15,977



22,956



21,162


Total troubled debt restructuring

$

34,804



35,450



33,352



31,999



30,300












Nonperforming loans to total loans

1.00

%


1.06

%


0.97

%


0.78

%


0.74

%

Nonperforming assets to total assets

0.80

%


0.85

%


0.81

%


0.67

%


0.63

%

Allowance for credit losses to total loans

1.30

%


1.29

%


1.05

%


0.66

%


0.60

%

Allowance for total loans excluding PPP loan balances

1.36

%


1.36

%


N/A



N/A



N/A


Allowance for credit losses to nonperforming loans

130.68

%


121.63

%


108.70

%


84.09

%


80.40

%

*  

Amounts included in nonperforming loans above.


 

Northwest Bancshares, Inc. and Subsidiaries
Loans by Credit Quality Indicators (Unaudited)
(dollars in thousands)

 

At September 30, 2020


Pass


Special
   mention *


Substandard
**


Doubtful
***


Loss


Loans
receivable

Personal Banking:













Residential mortgage loans


$

3,117,442




25,927




3,143,369


Home equity loans


1,471,919




12,446




1,484,365


Consumer loans


1,478,109




8,974




1,487,083


Total Personal Banking


6,067,470




47,347




6,114,817


Commercial Banking:













Commercial real estate loans


2,850,611



110,073


359,059




3,319,743


Commercial loans


1,255,255



40,631


51,406




1,347,292


Total Commercial Banking


4,105,866



150,704


410,465




4,667,035


Total loans


$

10,173,336



150,704


457,812




10,781,852


At June 30, 2020













Personal Banking:













Residential mortgage loans


$

3,196,304




26,451




3,222,755


Home equity loans


1,438,339




12,031




1,450,370


Consumer loans


1,508,129




9,990




1,518,119


Total Personal Banking


6,142,772




48,472




6,191,244


Commercial Banking:













Commercial real estate loans


3,034,984



72,755


199,993


1,092



3,308,824


Commercial loans


1,270,279



41,458


42,692


4,290



1,358,719


Total Commercial Banking


4,305,263



114,213


242,685


5,382



4,667,543


Total loans


$

10,448,035



114,213


291,157


5,382



10,858,787


At March 31, 2020













Personal Banking:













Residential mortgage loans


$

2,830,596




7,690




2,838,286


Home equity loans


1,345,052




8,211




1,353,263


Consumer loans


1,174,067




3,988




1,178,055


Total Personal Banking


5,349,715




19,889




5,369,604


Commercial Banking:













Commercial real estate loans


2,537,736



73,967


143,765




2,755,468


Commercial loans


618,267



43,071


50,464




711,802


Total Commercial Banking


3,156,003



117,038


194,229




3,467,270


Total loans


$

8,505,718



117,038


214,118




8,836,874


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


*  

Includes $34.7 million, $37.4 million, $13.1 million, $10.3 million, and $8.7 million of acquired loans at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively.

**  

Includes $129.2 million, $108.2 million, $56.8 million, $53.1 million, and $46.6 million of acquired loans at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively.

***  

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


 

Northwest Bancshares, Inc. and Subsidiaries
Loan Delinquency (Unaudited)
(dollars in thousands)

 


September 30,
2020


*


June 30,
2020


*


March 31,
2020


*


December 31,
2019


*


September 30,
2019


*

(Number of loans and dollar amount of loans)






























Loans delinquent 30 days to 59 days:






























Residential mortgage loans

17



$

736



%


15



$

629



%


358



$

32,755



1.2

%


292



$

23,296



0.8

%


21



$

1,236



%

Home equity loans

129



4,984



0.3

%


118



4,569



0.3

%


190



7,061



0.5

%


173



6,469



0.5

%


149



4,774



0.4

%

Consumer loans

1,078



8,586



0.6

%


629



7,199



0.5

%


953



8,774



0.7

%


960



9,208



0.8

%


864



7,597



0.7

%

Commercial real estate loans

28



5,090



0.2

%


46



14,177



0.4

%


58



12,895



0.5

%


43



7,921



0.3

%


27



5,308



0.2

%

Commercial loans

19



1,797



0.1

%


12



1,242



0.1

%


35



7,545



1.1

%


32



1,187



0.2

%


20



362



0.1

%

Total loans delinquent 30 days to 59 days

1,271



$

21,193



0.2

%


820



$

27,816



0.3

%


1,594



$

69,030



0.8

%


1,500



$

48,081



0.5

%


1,081



$

19,277



0.2

%































Loans delinquent 60 days to 89 days:






























Residential mortgage loans

65



$

4,788



0.2

%


64



$

5,364



0.2

%


11



$

511



%


67



$

5,693



0.2

%


95



$

5,320



0.2

%

Home equity loans

56



1,860



0.1

%


59



2,326



0.2

%


65



2,652



0.2

%


66



2,405



0.2

%


66



2,103



0.2

%

Consumer loans

323



3,049



0.2

%


258



2,916



0.2

%


265



2,610



0.2

%


395



3,302



0.3

%


288



2,632



0.2

%

Commercial real estate loans

14



4,212



0.1

%


18



3,913



0.1

%


12



2,981



0.1

%


19



1,690



0.1

%


15



1,893



0.1

%

Commercial loans

7



357



%


15



1,151



0.1

%


10



309



%


17



6,403



0.9

%


10



589



0.1

%

Total loans delinquent 60 days to 89 days

465



$

14,266



0.1

%


414



$

15,670



0.1

%


363



$

9,063



0.1

%


564



$

19,493



0.2

%


474



$

12,537



0.1

%































Loans delinquent 90 days or more: **






























Residential mortgage loans

168



$

14,750



0.5

%


185



$

15,369



0.5

%


129



$

10,457



0.4

%


141



$

12,775



0.4

%


138



$

11,816



0.4

%

Home equity loans

193



7,845



0.5

%


182



7,060



0.5

%


152



5,816



0.4

%


159



5,688



0.4

%


157



5,966



0.4

%

Consumer loans

696



5,847



0.4

%


709



6,896



0.5

%


445



3,459



0.3

%


590



3,611



0.3

%


398



3,401



0.3

%

Commercial real estate loans

136



35,496



1.1

%


149



29,729



0.9

%


139



25,342



0.9

%


129



25,014



0.9

%


118



22,292



0.8

%

Commercial loans

34



6,310



0.5

%


47



11,535



0.8

%


51



16,685



2.3

%


37



4,739



0.7

%


40



5,741



0.8

%

Total loans delinquent 90 days or more

1,227



$

70,24