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

WARREN, Pa., April 17, 2019 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NWBI) announced net income for the quarter ended March 31, 2019 of $25.0 million, or $0.24 per diluted share. This represents an increase of $59,000, or 0.2%, compared to the same quarter last year when net income was also $25.0 million or $0.24 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended March 31, 2019 were 7.96% and 1.03% compared to 8.40% and 1.08% for the same quarter last year. Earnings during the current quarter were impacted by $1.9 million of expense associated with the acquisition and integration of Union Community Bank ("UCB") on March 8, 2019. Excluding these costs, net income was approximately $26.4 million, or $0.25 per diluted share.

Northwest Bank (PRNewsfoto/Northwest Bank)

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.18 per share payable on May 16, 2019, to shareholders of record as of May 2, 2019. This is the 98th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's stock as of March 31, 2019, this represents an annualized dividend yield of approximately 4.25%.

In making this announcement, Ronald J. Seiffert, Chairman, President and CEO, noted, "We are very pleased to report the successful integration of Union Community Bank with Northwest Bank, which occurred on March 8, 2019. Union Community brings $537.9 million of assets, including approximately $408.0 million of loans, almost $480 million of deposits and 14,700 new households. In addition to this accomplishment, our internal loan growth exceeded $110.5 million, or almost 1.4%, for the quarter. This loan growth was funded entirely with internal deposit growth which increased $219.0 million, or 2.8%, during the first quarter. Lastly, we continue to be pleased with the expansion of our net interest margin, which increased to 3.97% despite the market interest rate challenges of a flattening yield curve."

Net interest income increased by $6.2 million, or 7.6%, to $88.0 million for the quarter ended March 31, 2019, from $81.8 million for the quarter ended March 31, 2018, primarily due to a $9.7 million, or 11.4%, increase in interest income on loans receivable and a $952,000, or 31.6%, increase in interest income on mortgage-backed securities. These increases were primarily due to increases of $382.0 million, or 4.9%, and $46.4 million, or 8.3%, in the average balances of loans and mortgage-backed securities, respectively.  Additionally, the average yield on loans and mortgage-backed securities increased by 28 and 46 basis points, respectively, over the prior year. Partially offsetting this improvement was an increase in interest expense on deposits of $3.7 million, or 57.1%, due to the recent increases in market interest rates. The net impact of these changes caused the Company's net interest margin to increase to 3.97% for the quarter ended March 31, 2019 from 3.86% for the same quarter last year.

The provision for loan losses increased by $2.3 million, or 53.6%, to $6.5 million for the quarter ended March 31, 2019, from $4.2 million for the quarter ended March 31, 2018. This increase is due primarily to elevated charge-offs during the quarter primarily as a result of one commercial loan that was charged down by approximately $2.6 million.

Noninterest income decreased by $126,000, or 0.6%, to $21.7 million for the quarter ended March 31, 2019, from $21.8 million for the quarter ended March 31, 2018. This decrease was primarily due to a $571,000, or 20.8%, decline in insurance commission income primarily as a result of the loss of certain contingent bonus commissions due to a change in related laws impacting the current quarter.  Partially offsetting this decline was a decrease in loss on real estate owned of $543,000, or 99.5%, to $3,000 for the current quarter compared to $546,000 for the prior year's quarter, primarily as a result of the sale of one commercial property at a net loss of $265,000 during the first quarter of 2018.

Noninterest expense increased by $4.0 million, or 5.9%, to $71.4 million for the quarter ended March 31, 2019, from $67.4 million for the quarter ended March 31, 2018. This increase resulted primarily from a $1.7 million, or 4.6%, increase in compensation and employee benefits due to both internal growth in compensation and staff as well as the addition of UCB employees. In addition, processing expenses increased by $728,000, or 7.5%, as we continue to invest in technology and infrastructure to meet the demands of becoming a $10.0 billion institution. Also contributing to this increase was an increase in restructuring and acquisition expense of $1.9 million due to expenses incurred as part of the UCB acquisition.

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

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

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(Dollars in thousands, except per share amounts)



March 31,
 2019


December 31,
 2018


March 31,
 2018

Assets






Cash and cash equivalents

$

92,923



68,789



192,158


Marketable securities available-for-sale (amortized cost of $845,989, $811,015 and $771,110, respectively)

842,657



801,450



757,976


Marketable securities held-to-maturity (fair value of $21,597, $22,446 and $27,324, respectively)

21,671



22,765



27,709


Total cash and cash equivalents and marketable securities

957,251



893,004



977,843








Residential mortgage loans

2,867,161



2,864,470



2,772,148


Home equity loans

1,324,405



1,258,422



1,288,361


Consumer loans

931,062



859,713



686,038


Commercial real estate loans

2,799,309



2,471,821



2,512,257


Commercial loans

647,938



597,013



623,463


Total loans receivable

8,569,875



8,051,439



7,882,267


Allowance for loan losses

(55,721)



(55,214)



(55,211)


Loans receivable, net

8,514,154



7,996,225



7,827,056








Federal Home Loan Bank stock, at cost

12,533



15,635



7,694


Accrued interest receivable

28,107



24,490



23,051


Real estate owned, net

2,345



2,498



4,041


Premises and equipment, net

149,623



143,390



148,184


Bank owned life insurance

186,251



171,079



172,537


Goodwill

344,720



307,420



307,420


Other intangible assets

25,872



19,821



24,149


Other assets

76,232



34,211



29,004


Total assets

$

10,297,088



9,607,773



9,520,979








Liabilities and shareholders' equity






Liabilities






Noninterest-bearing demand deposits

$

1,992,126



1,736,156



1,679,853


Interest-bearing demand deposits

1,583,049



1,455,460



1,476,177


Money market deposit accounts

1,778,806



1,661,623



1,707,837


Savings deposits

1,711,216



1,636,099



1,701,022


Time deposits

1,527,327



1,404,841



1,420,600


Total deposits

8,592,524



7,894,179



7,985,489








Borrowed funds

114,081



234,389



104,558


Advances by borrowers for taxes and insurance

44,905



43,298



43,654


Accrued interest payable

1,111



744



528


Other liabilities

106,434



66,312



60,283


Junior subordinated debentures

121,757



111,213



111,213


Total liabilities

8,980,812



8,350,135



8,305,725








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, 106,220,030, 103,354,030, and
102,599,662 shares issued and outstanding, respectively

1,062



1,034



1,026


Paid-in-capital

795,044



745,926



734,065


Retained earnings

555,205



550,374



522,384


Accumulated other comprehensive loss

(35,035)



(39,696)



(42,221)


Total shareholders' equity

1,316,276



1,257,638



1,215,254


Total liabilities and shareholders' equity

$

10,297,088



9,607,773



9,520,979








Equity to assets

12.78

%


13.09

%


12.76

%

Tangible common equity to assets

9.53

%


10.03

%


9.62

%

Book value per share

$

12.39



12.17



11.84


Tangible book value per share

$

8.90



9.00



8.61


Closing market price per share

$

16.97



16.94



16.56


Full time equivalent employees

2,205



2,128



2,105


Number of banking offices

182



172



172



 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share amounts)



Quarter ended


March 31,


December 31,


September 30,


June 30,


March 31,


2019


2018


2018


2018


2018

Interest income:










Loans receivable

$

94,935



92,512



90,733



88,106



85,220


Mortgage-backed securities

3,965



3,942



3,572



3,254



3,013


Taxable investment securities

936



924



814



648



678


Tax-free investment securities

182



170



205



313



390


FHLB dividends

171



151



119



85



97


Interest-earning deposits

100



69



162



469



135


Total interest income

100,289



97,768



95,605



92,875



89,533












Interest expense:










Deposits

10,145



8,985



8,233



7,309



6,458


Borrowed funds

2,162



1,952



1,555



1,340



1,308


Total interest expense

12,307



10,937



9,788



8,649



7,766












Net interest income

87,982



86,831



85,817



84,226



81,767


Provision for loan losses

6,467



3,792



6,982



5,349



4,209


Net interest income after provision for loan losses

81,515



83,039



78,835



78,877



77,558












Noninterest income:










Gain/(loss) on sale of investments

(6)



4







153


Service charges and fees

12,043



12,827



13,158



12,908



11,899


Trust and other financial services income

4,195



4,246



4,254



4,050



4,031


Insurance commission income

2,178



1,906



2,046



2,090



2,749


Gain/(loss) on real estate owned, net

(3)



(14)



(247)



176



(546)


Income from bank owned life insurance

1,005



1,038



1,460



2,333



990


Mortgage banking income

216



213



82



77



224


Other operating income

2,034



3,028



1,804



2,475



2,288


Total noninterest income

21,662



23,248



22,557



24,109



21,788












Noninterest expense:










Compensation and employee benefits

38,188



39,319



37,535



39,031



36,510


Premises and occupancy costs

7,218



6,567



6,821



6,824



7,307


Office operations

3,131



3,455



3,508



3,768



3,408


Collections expense

308



780



483



434



512


Processing expenses

10,434



10,160



9,620



9,560



9,706


Marketing expenses

1,886



2,331



1,949



2,014



2,140


Federal deposit insurance premiums

706



637



721



671



717


Professional services

2,524



3,134



2,368



2,819



2,277


Amortization of intangible assets

1,447



1,346



1,462



1,520



1,520


Real estate owned expense

159



187



205



133



292


Restructuring/acquisition expense

1,926



435



186



393




Other expense

3,497



3,922



1,759



2,620



3,032


Total noninterest expense

71,424



72,273



66,617



69,787



67,421


Income before income taxes

31,753



34,014



34,775



33,199



31,925












Income tax expense

6,709



7,547



7,035



6,900



6,940


Net income

$

25,044



26,467



27,740



26,299



24,985












Basic earnings per share

$

0.24



0.26



0.27



0.26



0.25


Diluted earnings per share

$

0.24



0.26



0.27



0.25



0.24












Weighted average common shares outstanding - basic

103,101,789



102,479,086



102,334,954



101,870,043



101,598,928


Weighted average common shares outstanding - diluted

104,496,592



103,749,383



103,942,695



103,424,154



103,136,497












Annualized return on average equity

7.96

%


8.44

%


8.93

%


8.67

%


8.40

%

Annualized return on average assets

1.03

%


1.09

%


1.15

%


1.11

%


1.08

%

Annualized return on tangible common equity

10.74

%


11.29

%


12.07

%


11.74

%


11.47

%











Efficiency ratio *

62.07

%


64.04

%


59.95

%


62.65

%


63.64

%

Annualized noninterest expense to average assets *

2.79

%


2.91

%


2.70

%


2.87

%


2.84

%


* Excludes restructuring/acquisition expenses and amortization of intangible assets.

 

Northwest Bancshares, Inc. and Subsidiaries

Asset quality (Unaudited)

(Dollars in thousands)



March 31,
 2019


December 31,
 2018


September 30,
 2018


June 30,
 2018


March 31,
 2018

Nonaccrual loans current:










Residential mortgage loans

$

124



264



869



669



123


Home equity loans

643



437



496



237



269


Consumer loans

76



196



126



218



178


Commercial real estate loans

10,520



9,947



10,905



14,814



11,355


Commercial loans

4,277



4,736



1,972



2,559



2,381


Total nonaccrual loans current

$

15,640



15,580



14,368



18,497



14,306












Nonaccrual loans delinquent 30 days to 59
days:










Residential mortgage loans

$

824



1,358



15



89



1,290


Home equity loans

160



266



333



221



232


Consumer loans

154



294



182



192



224


Commercial real estate loans

2,642



219



3,124



522



975


Commercial loans

321



23



150



51



140


Total nonaccrual loans delinquent 30 days to 59 days

$

4,101



2,160



3,804



1,075



2,861












Nonaccrual loans delinquent 60 days to 89 days:










Residential mortgage loans

$

1,323



1,262



547



668



755


Home equity loans

954



376



418



483



465


Consumer loans

683



582



464



194



224


Commercial real estate loans

3,588



1,260



1,872



1,682



399


Commercial loans

397



332



352



380



80


Total nonaccrual loans delinquent 60 days to 89 days

$

6,945



3,812



3,653



3,407



1,923












Nonaccrual loans delinquent 90 days or more:










Residential mortgage loans

$

10,781



12,965



13,154



11,822



10,660


Home equity loans

5,542



5,996



5,838



6,729



6,707


Consumer finance loans



22



39



15



3


Consumer loans

3,215



3,228



3,535



2,626



2,931


Commercial real estate loans

24,528



25,509



27,122



15,617



16,145


Commercial loans

2,027



3,010



2,714



2,925



3,144


Total nonaccrual loans delinquent 90 days or more

$

46,093



50,730



52,402



39,734



39,590












Total nonaccrual loans

$

72,779



72,282



74,227



62,713



58,680












Total nonaccrual loans

$

72,779



72,282



74,227



62,713



58,680


Loans 90 days past maturity and still accruing

166



166



195



94



210


Nonperforming loans

72,945



72,448



74,422



62,807



58,890


Real estate owned, net

2,345



2,498



2,486



2,722



4,041


Nonperforming assets

$

75,290



74,946



76,908



65,529



62,931












Nonaccrual troubled debt restructuring *

$

14,951



15,306



9,777



10,860



11,217


Accruing troubled debt restructuring

17,861



18,302



19,370



19,802



19,749


Total troubled debt restructuring

$

32,812



33,608



29,147



30,662



30,966












Nonperforming loans to total loans

0.85

%


0.90

%


0.93

%


0.79

%


0.75

%

Nonperforming assets to total assets

0.73

%


0.78

%


0.80

%


0.69

%


0.66

%

Allowance for loan losses to total loans

0.65

%


0.69

%


0.70

%


0.72

%


0.70

%

Allowance for loan losses to nonperforming loans

76.39

%


76.21

%


75.21

%


91.28

%


93.75

%


* Amounts included in nonperforming loans above.

 

Northwest Bancshares, Inc. and Subsidiaries

Loans by credit quality indicators (Unaudited)

(Dollars in thousands)


At March 31, 2019


Pass


Special

mention *


Substandard 

**


Doubtful


Loss


Loans

receivable

Personal Banking:













Residential mortgage loans


$

2,858,007





9,154







2,867,161


Home equity loans


1,317,323





7,082







1,324,405


Consumer loans


926,832





4,230







931,062


Total Personal Banking


5,102,162





20,466







5,122,628


Commercial Banking:













Commercial real estate loans


2,577,176



87,053



135,080







2,799,309


Commercial loans


573,160



34,610



40,168







647,938


Total Commercial Banking


3,150,336



121,663



175,248







3,447,247


Total loans


$

8,252,498



121,663



195,714







8,569,875















At December 31, 2018













Personal Banking:













Residential mortgage loans


$

2,853,460





11,010







2,864,470


Home equity loans


1,251,518





6,904







1,258,422


Consumer loans


855,277





4,436







859,713


Total Personal Banking


4,960,255





22,350







4,982,605


Commercial Banking:













Commercial real estate loans


2,254,350



94,688



122,783







2,471,821


Commercial loans


538,762



19,281



38,970







597,013


Total Commercial Banking


2,793,112



113,969



161,753







3,068,834


Total loans


$

7,753,367



113,969



184,103







8,051,439















At September 30, 2018













Personal Banking:













Residential mortgage loans


$

2,835,806





11,028







2,846,834


Home equity loans


1,265,237





7,108







1,272,345


Consumer loans


771,555





4,494







776,049


Total Personal Banking


4,872,598





22,630







4,895,228


Commercial Banking:













Commercial real estate loans


2,283,152



53,529



181,385







2,518,066


Commercial loans


526,584



24,760



31,424







582,768


Total Commercial Banking


2,809,736



78,289



212,809







3,100,834


Total loans


$

7,682,334



78,289



235,439







7,996,062















At June 30, 2018













Personal Banking:













Residential mortgage loans


$

2,790,906





9,762







2,800,668


Home equity loans


1,268,884





7,297







1,276,181


Consumer loans


697,561





3,364







700,925


Total Personal Banking


4,757,351





20,423







4,777,774


Commercial Banking:













Commercial real estate loans


2,294,327



65,698



193,198







2,553,223


Commercial loans


554,495



18,140



38,738







611,373


Total Commercial Banking


2,848,822



83,838



231,936







3,164,596


Total loans


$

7,606,173



83,838



252,359







7,942,370















At March 31, 2018













Personal Banking:













Residential mortgage loans


$

2,755,078





17,070







2,772,148


Home equity loans


1,279,137





9,224







1,288,361


Consumer loans


682,433





3,605







686,038


Total Personal Banking


4,716,648





29,899







4,746,547


Commercial Banking:













Commercial real estate loans


2,256,054



57,690



198,513







2,512,257


Commercial loans


557,613



19,147



46,703







623,463


Total Commercial Banking


2,813,667



76,837



245,216







3,135,720


Total loans


$

7,530,315



76,837



275,115







7,882,267



*

Includes $3.4 million, $7.1 million, $9.2 million, $9.5million and $7.9 million of acquired loans at March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively.

**

Includes $37.8 million, $39.3 million, $45.3 million, $44.5 million and $45.2 million of acquired loans at March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 30, 2018, respectively.


 

Northwest Bancshares, Inc. and Subsidiaries

Loan delinquency (Unaudited)

(Dollars in thousands)




March 31,

2019


*


December 31,

2018


*


September 30,

2018


*


June 30,
2018


*


March 31,

2018


*

(Number of loans and dollar amount of loans)































Loans delinquent 30 days to 59 days:































Residential mortgage loans


311



$

28,009



1.0

%


333



$

27,777



1.0

%


27



$

1,500



0.1

%


30



$

1,561



0.1

%


319



$

27,403



1.0

%

Home equity loans


195



7,626



0.6

%


233



8,649



0.7

%


184



5,673



0.4

%


184



6,383



0.5

%


200



7,406



0.6

%

Consumer finance loans


128



295



12.9

%


327



661



17.3

%


280



632



10.7

%


306



711



8.1

%


477



1,288



10.3

%

Consumer loans


777



7,228



0.8

%


1,073



9,447



1.1

%


984



8,408



1.1

%


901



8,855



1.3

%


871



8,252



1.2

%

Commercial real estate loans


48



28,965



1.0

%


37



5,503



0.2

%


36



5,386



0.2

%


40



5,898



0.2

%


58



20,303



0.8

%

Commercial loans


30



3,359



0.5

%


21



973



0.2

%


17



622



0.1

%


24



1,000



0.2

%


35



2,912



0.5

%

Total loans delinquent 30 days to 59 days


1,489



$

75,482



0.9

%


2,024



$

53,010



0.7

%


1,528



$

22,221



0.3

%


1,485



$

24,408



0.3

%


1,960



$

67,564



0.9

%
































Loans delinquent 60 days to 89 days:































Residential mortgage loans


29



$

2,602



0.1

%


71



$

6,425



0.2

%


61



$

4,704



0.2

%


62



$

5,847



0.2

%


21



$

1,943



0.1

%

Home equity loans


53



2,544



0.2

%


63



2,065



0.2

%


69



2,536



0.2

%


73



2,495



0.2

%


52



2,040



0.2

%

Consumer finance loans


28



47



2.1

%


86



172



4.5

%


112



234



4.0

%


127



277



3.2

%


109



233



1.9

%

Consumer loans


271



2,130



0.2

%


389



3,042



0.4

%


352



3,251



0.4

%


350



2,654



0.4

%


296



2,259



0.3

%

Commercial real estate loans


17



4,064



0.1

%


24



5,387



0.2

%


30



6,678



0.3

%


28



3,689



0.1

%


23



1,809



0.1

%

Commercial loans


7



738



0.1

%


8



560



0.1

%


21



1,104



0.2

%


15



926



0.2

%


7



196



%

Total loans delinquent 60 days to 89 days


405



$

12,125



0.1

%


641



$

17,651



0.2

%


645



$

18,507



0.2

%


655



$

15,888



0.2

%


508



$

8,480



0.1

%
































Loans delinquent 90 days or more: **































Residential mortgage loans


113



$

10,801



0.4

%


145



$

12,985



0.5

%


143



$

13,483



0.5

%


140



$

12,293



0.4

%


127



$

10,791



0.4

%

Home equity loans


155



5,542



0.4

%


161



6,037



0.5

%


150



5,838



0.5

%


154



6,768



0.5

%


148



6,750



0.5

%

Consumer finance loans






%


6



21



0.6

%


16



39



0.7

%


8



15



0.2

%


7



3



%

Consumer loans


764



3,221



0.3

%


432



3,233



0.4

%


766



3,541



0.5

%


302



2,633



0.4

%


659



2,939



0.4

%

Commercial real estate loans


125



24,589



0.9

%


128



25,587



1.0

%


126



27,228



1.1

%


113



15,772



0.6

%


106



16,723



0.7

%

Commercial loans


23



2,027



0.3

%


29



3,010



0.5

%


29



2,714



0.5

%


31



2,925



0.5

%


35



3,144



0.5

%

Total loans delinquent 90 days or more


1,180



$

46,180



0.5

%


901



$

50,873



0.6

%


1,230



$

52,843



0.7

%


748



$

40,406



0.5

%


1,082



$

40,350



0.5

%
































Total loans delinquent


3,074



$

133,787



1.6

%


3,566



$

121,534



1.5

%


3,403



$

93,571



1.2

%


2,888



$

80,702



1.0

%


3,550



$

116,394



1.5

%


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

** Includes purchased credit impaired loans of $87,000, $145,000, $440,000, $672,000, and $760,000 at March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, respectively.

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for loan losses (Unaudited)

(Dollars in thousands)



Quarter ended


March 31,
 2019


December 31,
 2018


September 30,
 2018


June 30,
 2018


March 31,
 2018

Beginning balance

$          55,214



55,975



57,332



55,211



56,795


Provision

6,467



3,792



6,982



5,349



4,209


Charge-offs residential mortgage

(357)



(375)



(214)



(389)



(201)


Charge-offs home equity

(153)



(341)



(426)



(406)



(611)


Charge-offs consumer finance

(179)



(329)



(445)



(486)



(1,553)


Charge-offs consumer

(2,842)



(3,751)



(3,470)



(2,682)



(3,249)


Charge-offs commercial real estate

(604)



(1,538)



(4,859)



(439)



(551)


Charge-offs commercial

(3,270)



(824)



(985)



(491)



(1,025)


Recoveries

1,445



2,605



2,060



1,665



1,397


Ending balance

$

55,721



55,214



55,975



57,332



55,211












Net charge-offs to average loans, annualized

0.29

%


0.23

%


0.42

%


0.16

%


0.30

%

















 


March 31, 2019


Originated loans


Acquired loans


Total loans


Balance


Reserve


Balance


Reserve


Balance


Reserve

Residential mortgage loans

$

2,770,230



4,005



96,931



92



2,867,161



4,097


Home equity loans

1,032,957



3,062



291,448



399



1,324,405



3,461


Legacy consumer finance loans

2,292



406







2,292



406


Consumer loans

876,540



11,130



52,230



453



928,770



11,583


Personal Banking Loans

4,682,019



18,603



440,609



944



5,122,628



19,547














Commercial real estate loans

2,297,337



25,470



501,972



2,467



2,799,309



27,937


Commercial loans

580,098



7,638



67,840



599



647,938



8,237


Commercial Banking Loans

2,877,435



33,108



569,812



3,066



3,447,247



36,174














Total Loans

$

7,559,454



51,711



1,010,421



4,010



8,569,875



55,721


 

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


March 31, 2019


December 31, 2018


September 30, 2018


June 30, 2018


March 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

$

2,842,556



29,282



4.12

%


$

2,837,220



28,794



4.06

%


$

2,804,027



28,974



4.13

%


$

2,761,528



27,893



4.04

%


$

2,756,142



27,973



4.12

%

Home equity loans

1,265,974



16,048



5.14

%


1,264,169



15,788



4.95

%


1,272,847



15,248



4.75

%


1,281,001



15,384



4.82

%


1,298,780



14,786



4.62

%

Consumer loans

869,536



10,052



4.69

%


791,685



9,365



4.69

%


704,203



8,337



4.70

%


655,541



7,949



4.86

%


637,691



7,450



4.74

%

Consumer finance loans

2,999



139



18.54

%


4,751



220



18.52

%


7,176



343



19.12

%


10,428



516



19.79

%


15,254



768



20.14

%

Commercial real estate loans

2,560,408



30,767



4.81

%


2,492,331



29,991



4.71

%


2,540,270



29,974



4.62

%


2,518,170



29,034



4.56

%


2,471,422



27,384



4.43

%

Commercial loans

615,090



8,967



5.83

%


590,195



8,666



5.75

%


598,842



8,203



5.36

%


624,087



7,703



4.88

%


595,276



7,160



4.81

%

Total loans receivable (a) (b) (d)

8,156,563



95,255



4.74

%


7,980,351



92,824



4.61

%


7,927,365



91,079



4.56

%


7,850,755



88,479



4.52

%


7,774,565



85,521



4.46

%

Mortgage-backed securities (c)

604,463



3,965



2.62

%


619,105



3,942



2.55

%


598,596



3,572



2.39

%


569,893



3,255



2.28

%


558,055



3,013



2.16

%

Investment securities (c) (d)

227,312



1,167



2.05

%


227,813



1,140



2.00

%


244,346



1,074



1.76

%


235,784



1,044



1.77

%


256,287



1,172



1.83

%

FHLB stock

16,098



171



4.31

%


14,372



151



4.17

%


9,819



119



4.81

%


7,819



85



4.36

%


9,354



97



4.21

%

Other interest-earning deposits

14,136



100



2.83

%


10,454



68



2.55

%


26,057



162



2.43

%


103,739



469



1.79

%


34,200



135



1.58

%

Total interest-earning assets

9,018,572



100,658



4.53

%


8,852,095



98,125



4.40

%


8,806,183



96,006



4.33

%


8,767,990



93,332



4.27

%


8,632,461



89,938



4.23

%

Noninterest earning assets (e)

868,843







743,262







746,077







732,065







779,812






Total assets

$

9,887,415







$

9,595,357







$

9,552,260







$

9,500,055







$

9,412,273




































Liabilities and shareholders' equity:






























Interest-bearing liabilities:






























Savings deposits

$

1,650,947



758



0.19

%


$

1,637,400



758



0.18

%


$

1,672,990



785



0.19

%


$

1,699,168



773



0.18

%


$

1,670,491



749



0.18

%

Interest-bearing demand deposits

1,452,963



1,162



0.32

%


1,442,587



1,066



0.29

%


1,460,556



1,064



0.29

%


1,468,228



875



0.24

%


1,419,459



603



0.17

%

Money market deposit accounts

1,693,626



2,579



0.62

%


1,678,664



1,910



0.45

%


1,685,368



1,565



0.37

%


1,691,652



1,211



0.29

%


1,706,800



1,053



0.25

%

Time deposits

1,432,679



5,646



1.60

%


1,401,352



5,251



1.49

%


1,403,967



4,819



1.36

%


1,440,457



4,450



1.24

%


1,415,247



4,053



1.16

%

Borrowed funds (f)

257,550



1,006



1.58

%


216,975



782



1.43

%


129,523



239



0.73

%


104,415



50



0.19

%


133,231



124



0.38

%

Junior subordinated debentures

114,727



1,156



4.03

%


111,213



1,170



4.12

%


111,213



1,316



4.63

%


111,213



1,290



4.59

%


111,213



1,184



4.26

%

Total interest-bearing liabilities

6,602,492



12,307



0.76

%


6,488,191



10,937



0.67

%


6,463,617



9,788



0.60

%


6,515,133



8,649



0.53

%


6,456,441



7,766



0.49

%

Noninterest-bearing demand deposits (g)

1,785,158







1,750,253







1,724,427







1,676,344







1,606,247






Noninterest bearing liabilities

223,480







112,349







132,062







92,252







143,608






Total liabilities

8,611,130







8,350,793







8,320,106







8,283,729







8,206,296






Shareholders' equity

1,276,285







1,244,564







1,232,154







1,216,326







1,205,977






Total liabilities and shareholders' equity

$

9,887,415







$

9,595,357







$

9,552,260







$

9,500,055







$

9,412,273






Net interest income/Interest rate spread



88,351



3.77

%




87,188



3.73

%




86,218



3.73

%




84,683



3.74

%




82,172



3.74

%

Net interest-earning assets/ Net interest margin

$

2,416,080





3.97

%


$

2,363,904





3.94

%


$

2,342,566





3.92

%


$

2,252,857





3.86

%


$

2,176,020





3.86

%

Ratio of interest-earning assets to
interest-bearing liabilities

1.37X







1.36X







1.36X







1.35X







1.34X







(a)

Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.

(b)

Interest income includes accretion/amortization of deferred loan fees/expenses, which was not material.

(c)

Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(d)

Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis.

(e)

Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.

(f)

Average balances include FHLB borrowings and collateralized borrowings.

(g)

Average cost of deposits were 0.51%, 0.45%, 0.41%, 0.37% and 0.33%, respectively.

(h)

Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.72%, 4.60%, 4.54%, 4.50% and 4.45%, respectively, Investment securities - 1.97%, 1.92%, 1.67%, 1.63% and 1.67%, respectively, Interest-earning assets - 4.51%, 4.38%, 4.31%, 4.25% and 4.21%, respectively. GAAP basis net interest rate spreads were 3.75%, 3.71%, 3.71%, 3.72%  and 3.72%, respectively, and GAAP basis net interest margins were 3.96%, 3.92%, 3.90%, 3.84% and 3.84%, respectively.


 

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