Northwest Bancshares, Inc. Announces Second Quarter 2022 Earnings and Quarterly Dividend
COLUMBUS, Ohio, July 25, 2022 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended June 30, 2022 of $33.4 million, or $0.26 per diluted share. This represents a decrease of $15.5 million, or 31.7%, compared to the same quarter last year, when net income was $49.0 million, or $0.38 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended June 30, 2022 were 8.90% and 0.94% compared to 12.58% and 1.37% for the same quarter last year. Prior year earnings were enhanced by a $25.3 million pre-tax gain on the sale of the Northwest insurance line of business.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on August 15, 2022 to shareholders of record as of August 4, 2022. This is the 111th 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, 2022, this represents an annualized dividend yield of approximately 6.0%.
During the second quarter, the Company announced the unfortunate passing of Chairman, President, and Chief Executive Officer, Ronald J. Seiffert, from natural causes. Subsequently, as announced on May 25, 2022, the Northwest Bancshares and Northwest Bank Boards of Directors named the Company's Chief Financial Officer, William W. Harvey Jr,. as interim President and Chief Executive Officer and the Company's Lead Director, Timothy B. Fannin, as interim Chairman of the Board.
Mr. Harvey commented, "Everyone in the Northwest family is deeply saddened by the unexpected passing of Ron. Ron was such a strong leader during his time at Northwest and he positioned us well for the future. We are committed to carrying out his vision and strategic direction for the company."
In relation to the quarterly results, Mr. Harvey noted, "We are pleased with the loan growth momentum generated during the quarter with organic loan growth of approximately $200.0 million, or almost 2.0%, augmented by the purchase of a $50.0 million one-to-four family jumbo mortgage loan portfolio and a $43.0 million small business equipment finance pool. Also, during the quarter our net interest margin expanded by 32bp as a result of both an increase in market interest rates and the deployment of excess liquidity into higher yielding interest-earning assets."
Mr. Harvey continued, "Asset quality metrics continue to improve with nonperforming and classified assets dropping to $100.0 million and $277.4 million, respectively, and total delinquency and net charge-offs falling to pre-pandemic levels. Outside of an increase in other noninterest expense related primarily to an additional $3.4 million reserve for unfunded loan commitments, we continue to see a favorable trend in expense management over the past five quarters."
Net interest income increased by $4.5 million, or 4.7%, to $100.3 million for the quarter ended June 30, 2022, from $95.7 million for the quarter ended June 30, 2021, due primarily to a $1.5 million increase in both interest income on mortgage-backed securities and interest income on interest-earning deposits. The increase in interest income on mortgage-backed securities was due to an increase of $196.1 million, or 11.2%, in the average balance of mortgage-backed securities in addition to an increase in the yield on mortgage-backed securities to 1.47% for the quarter ended June 30, 2022 from 1.29% for the quarter ended June 30, 2021. The increase in interest income on interest-earning deposits was due to an increase of $35.4 million, or 4.4%, in the average balance of interest-earning deposits in addition to an increase in the yield on interest-earning deposits to 0.79% for the quarter ended June 30, 2022 from 0.09% for the quarter ended June 30, 2021. Also contributing to the increase in net interest income was a decrease in interest expense on deposits of $1.4 million, or 30.0%, primarily due to a decrease in our cost of our interest-bearing liabilities to 0.24% for the quarter ended June 30, 2022, from 0.29% for the quarter ended June 30, 2021. The net effect of the changes in interest rates and average balances was an increase in the Company's net interest margin to 3.07% for the quarter ended June 30, 2022, from 2.91% for the same quarter last year.
The Company continued to experience improvement in asset quality as classified loans decreased by $175.7 million, or 38.8%, to $277.4 million, or 2.7% of total loans, at June 30, 2022, from $453.1 million, or 4.4% of total loans, at June 30, 2021. Total delinquent loans also decreased to $51.1 million, or 0.49% of loans receivable, at June 30, 2022 from $68.9 million, or 0.70% of loans receivable, at June 30, 2021. In addition, annualized net charge-offs were 0.14% during the current quarter compared to 0.26% during the same quarter last year. As the result, the provision for credit losses during the current quarter remained historically low at just $2.6 million.
Noninterest income decreased by $24.3 million, or 44.3%, to $30.4 million for the quarter ended June 30, 2022, from $54.7 million for the quarter ended June 30, 2021. This decrease was primarily due to the sale of our insurance business in the second quarter of 2021, for a pre-tax gain of $25.3 million, which also resulted in a decrease in insurance commission income of $1.0 million, or 100.0% from the quarter ended June 30, 2021. In addition, mortgage banking income decreased by $1.7 million, or 43.4%, to $2.2 million for the quarter ended June 30, 2022 from $3.8 million for the quarter ended June 30, 2021. This decrease reflects the impact of less favorable pricing in the secondary market, due primarily to the volatile interest rate environment. Offsetting these decreases was an increase in other operating income of $2.2 million, or 83.6%, to $4.9 million for the quarter ended June 30, 2022 from $2.6 million for the quarter ended June 30, 2021 due to an increase in swap fee income as well as a gain of approximately $1.0 million from the sale of branch buildings associated with the previously announced consolidation of 20 branch office facilities.
Noninterest expense decreased by $1.5 million, or 1.8%, to $84.8 million for the quarter ended June 30, 2022 from $86.3 million for the quarter ended June 30, 2021. This decrease primarily resulted from a $2.2 million, or 14.5%, decrease in processing expense to $12.9 million for the quarter ended June 30, 2022 from $15.2 million for the quarter ended June 30, 2021 due to the investment in our technology and infrastructure during the prior year. Also contributing to this favorable variance was an $898,000, or 21.2%, decrease in professional services to $3.3 million for the quarter ended June 30, 2022 from $4.2 million for the quarter ended June 30, 2021 due to the use of third-party experts to assist with our digital strategy rollout in the prior year. Compensation and employee benefits also decreased by $821,000, or 1.7%, to $48.1 million for the quarter ended June 30, 2022 from $48.9 million for the quarter ended June 30, 2021, despite recognizing approximately $1.4 million of additional expenses related to the acceleration of compensation and stock benefits upon Mr. Seiffert's passing. The decrease in compensation and employee benefits was driven primarily by the branch consolidations completed in April. Partially offsetting these decreases was an increase in other expenses of $3.8 million to $5.2 million for the quarter ended June 30, 2022 from $1.4 million for the quarter ended June 30, 2021 due to an increase in our unfunded loan loss reserve associated with the origination of loans with current off balance sheet exposure.
The provision for income taxes decreased by $5.3 million, or 34.9%, to $9.9 million for the quarter ended June 30, 2022, from $15.1 million for the quarter ended June 30, 2021, due primarily to a decrease in income before taxes in the current year.
Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank. Founded in 1896 and headquartered in Warren, Pennsylvania, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of June 30, 2022, Northwest operated 142 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, 2022 | December 31, 2021 | June 30, 2021 | |||||
Assets | |||||||
Cash and cash equivalents | $ 504,532 | 1,279,259 | 857,152 | ||||
Marketable securities available-for-sale (amortized cost of $1,516,743, $1,565,002 and $1,593,813, |
1,364,743 |
1,548,592 |
1,599,024 | ||||
Marketable securities held-to-maturity (fair value of $835,565, $751,513 and $632,620, respectively) | 923,180 | 768,154 | 639,424 | ||||
Total cash and cash equivalents and marketable securities | 2,792,455 | 3,596,005 | 3,095,600 | ||||
Residential mortgage loans held-for-sale | 31,153 | 25,056 | 29,055 | ||||
Residential mortgage loans | 3,255,622 | 2,969,564 | 2,925,496 | ||||
Home equity loans | 1,280,492 | 1,319,931 | 1,376,228 | ||||
Consumer loans | 2,002,545 | 1,838,748 | 1,745,231 | ||||
Commercial real estate loans | 2,876,176 | 3,015,484 | 3,215,189 | ||||
Commercial loans | 986,836 | 847,609 | 1,018,781 | ||||
Total loans receivable | 10,432,824 | 10,016,392 | 10,309,980 | ||||
Allowance for credit losses | (98,355) | (102,241) | (117,330) | ||||
Loans receivable, net | 10,334,469 | 9,914,151 | 10,192,650 | ||||
FHLB stock, at cost | 13,362 | 14,184 | 23,287 | ||||
Accrued interest receivable | 27,708 | 25,599 | 27,585 | ||||
Real estate owned, net | 1,205 | 873 | 1,353 | ||||
Premises and equipment, net | 146,869 | 156,524 | 156,076 | ||||
Bank-owned life insurance | 254,109 | 256,213 | 253,539 | ||||
Goodwill | 380,997 | 380,997 | 380,997 | ||||
Other intangible assets, net | 10,538 | 12,836 | 15,362 | ||||
Other assets | 192,983 | 144,126 | 151,607 | ||||
Total assets | $ 14,154,695 | 14,501,508 | 14,298,056 | ||||
Liabilities and shareholders' equity | |||||||
Liabilities | |||||||
Noninterest-bearing demand deposits | $ 3,058,249 | 3,099,526 | 3,002,632 | ||||
Interest-bearing demand deposits | 2,858,691 | 2,940,442 | 2,824,219 | ||||
Money market deposit accounts | 2,631,712 | 2,629,882 | 2,538,607 | ||||
Savings deposits | 2,362,725 | 2,303,760 | 2,262,152 | ||||
Time deposits | 1,155,878 | 1,327,555 | 1,463,098 | ||||
Total deposits | 12,067,255 | 12,301,165 | 12,090,708 | ||||
Borrowed funds | 130,490 | 139,093 | 133,876 | ||||
Subordinated debt | 113,666 | 123,575 | 123,501 | ||||
Junior subordinated debentures | 129,184 | 129,054 | 128,924 | ||||
Advances by borrowers for taxes and insurance | 55,622 | 44,582 | 53,608 | ||||
Accrued interest payable | 1,725 | 1,804 | 1,820 | ||||
Other liabilities | 162,214 | 178,664 | 190,258 | ||||
Total liabilities | 12,660,156 | 12,917,937 | 12,722,695 | ||||
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, 126,881,766, 126,612,183 and |
1,269 |
1,266 |
1,279 | ||||
Additional paid-in capital | 1,015,349 | 1,010,405 | 1,025,174 | ||||
Retained earnings | 620,551 | 609,529 | 595,100 | ||||
Accumulated other comprehensive loss | (142,630) | (37,629) | (46,192) | ||||
Total shareholders' equity | 1,494,539 | 1,583,571 | 1,575,361 | ||||
Total liabilities and shareholders' equity | $ 14,154,695 | 14,501,508 | 14,298,056 | ||||
Equity to assets | 10.56 % | 10.92 % | 11.02 % | ||||
Tangible common equity to assets* | 8.01 % | 8.43 % | 8.48 % | ||||
Book value per share | $ 11.78 | 12.51 | 12.32 | ||||
Tangible book value per share* | $ 8.69 | 9.40 | 9.22 | ||||
Closing market price per share | $ 12.80 | 14.16 | 13.64 | ||||
Full time equivalent employees | 2,188 | 2,332 | 2.393 | ||||
Number of banking offices | 150 | 170 | 170 | ||||
* 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) | |||||||||
Quarter ended | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
Interest income: | |||||||||
Loans receivable | $ 95,574 | 88,174 | 95,295 | 97,475 | 95,255 | ||||
Mortgage-backed securities | 7,158 | 6,360 | 5,743 | 5,840 | 5,680 | ||||
Taxable investment securities | 715 | 677 | 640 | 649 | 693 | ||||
Tax-free investment securities | 683 | 674 | 688 | 628 | 594 | ||||
FHLB stock dividends | 82 | 81 | 82 | 71 | 138 | ||||
Interest-earning deposits | 1,684 | 467 | 467 | 352 | 192 | ||||
Total interest income | 105,896 | 96,433 | 102,915 | 105,015 | 102,552 | ||||
Interest expense: | |||||||||
Deposits | 3,341 | 3,751 | 4,295 | 4,540 | 4,773 | ||||
Borrowed funds | 2,290 | 2,059 | 1,964 | 2,056 | 2,050 | ||||
Total interest expense | 5,631 | 5,810 | 6,259 | 6,596 | 6,823 | ||||
Net interest income | 100,265 | 90,623 | 96,656 | 98,419 | 95,729 | ||||
Provision for credit losses | 2,629 | (1,481) | (1,909) | (4,354) | — | ||||
Net interest income after provision for credit losses | 97,636 | 92,104 | 98,565 | 102,773 | 95,729 | ||||
Noninterest income: | |||||||||
Loss on sale of investments | (3) | (2) | (4) | (46) | (105) | ||||
Service charges and fees | 13,673 | 13,067 | 13,500 | 13,199 | 12,744 | ||||
Trust and other financial services income | 7,461 | 7,012 | 6,820 | 7,182 | 7,435 | ||||
Insurance commission income | — | — | — | 44 | 1,043 | ||||
Gain/(loss) on real estate owned, net | 291 | (29) | 71 | 247 | 166 | ||||
Income from bank-owned life insurance | 2,008 | 1,983 | 1,343 | 1,332 | 1,639 | ||||
Mortgage banking income | 2,157 | 1,465 | 2,120 | 3,941 | 3,811 | ||||
Gain on sale of insurance business | — | — | — | — | 25,327 | ||||
Other operating income | 4,861 | 2,244 | 3,192 | 3,287 | 2,648 | ||||
Total noninterest income | 30,448 | 25,740 | 27,042 | 29,186 | 54,708 | ||||
Noninterest expense: | |||||||||
Compensation and employee benefits | 48,073 | 46,917 | 48,691 | 49,063 | 48,894 | ||||
Premises and occupancy costs | 7,280 | 7,797 | 7,104 | 7,745 | 7,410 | ||||
Office operations | 3,162 | 3,383 | 3,144 | 4,143 | 3,317 | ||||
Collections expense | 403 | 520 | 602 | 411 | 303 | ||||
Processing expenses | 12,947 | 12,548 | 13,639 | 13,517 | 15,151 | ||||
Marketing expenses | 2,047 | 2,128 | 2,054 | 2,102 | 2,101 | ||||
Federal deposit insurance premiums | 1,130 | 1,129 | 1,131 | 1,184 | 1,353 | ||||
Professional services | 3,333 | 2,573 | 4,513 | 4,295 | 4,231 | ||||
Amortization of intangible assets | 1,115 | 1,183 | 1,205 | 1,321 | 1,433 | ||||
Real estate owned expense | 72 | 37 | 44 | 94 | 85 | ||||
Merger, asset disposition and restructuring expense | — | 1,374 | 2,812 | — | 632 | ||||
Other expenses | 5,245 | 2,355 | 1,346 | 2,227 | 1,422 | ||||
Total noninterest expense | 84,807 | 81,944 | 86,285 | 86,102 | 86,332 | ||||
Income before income taxes | 43,277 | 35,900 | 39,322 | 45,857 | 64,105 | ||||
Income tax expense | 9,851 | 7,613 | 9,266 | 10,794 | 15,138 | ||||
Net income | $ 33,426 | 28,287 | 30,056 | 35,063 | 48,967 | ||||
Basic earnings per share | $ 0.26 | 0.22 | 0.24 | 0.28 | 0.38 | ||||
Diluted earnings per share | $ 0.26 | 0.22 | 0.24 | 0.27 | 0.38 | ||||
Annualized return on average equity | 8.90 % | 7.17 % | 7.65 % | 8.86 % | 12.58 % | ||||
Annualized return on average assets | 0.94 % | 0.80 % | 0.82 % | 0.97 % | 1.37 % | ||||
Annualized return on tangible common equity * | 12.16 % | 10.14 % | 10.02 % | 11.92 % | 16.66 % | ||||
Efficiency ratio ** | 64.03 % | 68.22 % | 66.51 % | 66.44 % | 67.35 % | ||||
Annualized noninterest expense to average assets *** | 2.35 % | 2.23 % | 2.25 % | 2.33 % | 2.35 % | ||||
* Excludes goodwill and other intangible assets (non-GAAP). |
** Excludes gain on sale of insurance business, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). |
*** Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). |
Northwest Bancshares, Inc. and Subsidiaries | |||
Consolidated Statements of Income (Unaudited) | |||
(dollars in thousands, except per share amounts) | |||
Six months ended June 30, | |||
2022 | 2021 | ||
Interest income: | |||
Loans receivable | $ 183,748 | 197,573 | |
Mortgage-backed securities | 13,518 | 9,880 | |
Taxable investment securities | 1,392 | 1,327 | |
Tax-free investment securities | 1,357 | 1,169 | |
FHLB stock dividends | 163 | 254 | |
Interest-earning deposits | 2,151 | 375 | |
Total interest income | 202,329 | 210,578 | |
Interest expense: | |||
Deposits | 7,092 | 10,287 | |
Borrowed funds | 4,349 | 4,104 | |
Total interest expense | 11,441 | 14,391 | |
Net interest income | 190,888 | 196,187 | |
Provision for credit losses | 1,148 | (5,620) | |
Net interest income after provision for credit losses | 189,740 | 201,807 | |
Noninterest income: | |||
Loss on sale of investments | (5) | (126) | |
Service charges and fees | 26,740 | 25,138 | |
Trust and other financial services income | 14,473 | 13,919 | |
Insurance commission income | — | 3,589 | |
Gain on real estate owned, net | 262 | 124 | |
Income from bank-owned life insurance | 3,991 | 3,375 | |
Mortgage banking income | 3,622 | 9,831 | |
Gain on sale of insurance business | — | 25,327 | |
Other operating income | 7,105 | 5,484 | |
Total noninterest income | 56,188 | 86,661 | |
Noninterest expense: | |||
Compensation and employee benefits | 94,990 | 96,133 | |
Premises and occupancy costs | 15,077 | 16,224 | |
Office operations | 6,545 | 6,482 | |
Collections expense | 923 | 919 | |
Processing expenses | 25,495 | 28,607 | |
Marketing expenses | 4,175 | 4,081 | |
Federal deposit insurance premiums | 2,259 | 2,660 | |
Professional services | 5,906 | 8,813 | |
Amortization of intangible assets | 2,298 | 3,027 | |
Real estate owned expense | 109 | 160 | |
Merger, asset disposition and restructuring expense | 1,374 | 641 | |
Other expenses | 7,600 | 4,776 | |
Total noninterest expense | 166,751 | 172,523 | |
Income before income taxes | 79,177 | 115,945 | |
Income tax expense | 17,464 | 26,741 | |
Net income | $ 61,713 | 89,204 | |
Basic earnings per share | $ 0.49 | 0.70 | |
Diluted earnings per share | $ 0.49 | 0.70 | |
Annualized return on average equity | 8.01 % | 11.61 % | |
Annualized return on average assets | 0.87 % | 1.27 % | |
Annualized return on tangible common equity * | 11.28 % | 15.26 % | |
Efficiency ratio ** | 66.00 % | 65.57 % | |
Annualized noninterest expense to average assets *** | 2.29 % | 2.40 % | |
* Excludes goodwill and other intangible assets (non-GAAP). |
** Excludes gain on sale of insurance business, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). |
*** Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). |
Northwest Bancshares, Inc. and Subsidiaries | |||||||||
Asset Quality (Unaudited) | |||||||||
(dollars in thousands) | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
Nonaccrual loans current: | |||||||||
Residential mortgage loans | $ 1,970 | 1,884 | 1,354 | 2,015 | 189 | ||||
Home equity loans | 1,337 | 1,376 | 1,212 | 1,267 | 170 | ||||
Consumer loans | 976 | 1,148 | 1,336 | 1,465 | 188 | ||||
Commercial real estate loans | 60,537 | 79,810 | 106,233 | 111,075 | 138,820 | ||||
Commercial loans | 5,270 | 6,060 | 6,098 | 17,021 | 17,545 | ||||
Total nonaccrual loans current | $ 70,090 | 90,278 | 116,233 | 132,843 | 156,912 | ||||
Nonaccrual loans delinquent 30 days to 59 days: | |||||||||
Residential mortgage loans | $ 2 | 760 | 244 | 99 | 68 | ||||
Home equity loans | 172 | 195 | 223 | 328 | 229 | ||||
Consumer loans | 158 | 190 | 241 | 152 | 230 | ||||
Commercial real estate loans | 911 | 333 | 239 | 205 | 1,589 | ||||
Commercial loans | 358 | 4 | 53 | 102 | 406 | ||||
Total nonaccrual loans delinquent 30 days to 59 days | $ 1,601 | 1,482 | 1,000 | 886 | 2,522 | ||||
Nonaccrual loans delinquent 60 days to 89 days: | |||||||||
Residential mortgage loans | $ 199 | 830 | 1,163 | 527 | 207 | ||||
Home equity loans | 566 | 371 | 61 | 142 | 310 | ||||
Consumer loans | 226 | 280 | 292 | 291 | 297 | ||||
Commercial real estate loans | 630 | — | 364 | 419 | 198 | ||||
Commercial loans | 73 | — | 218 | 170 | 21 | ||||
Total nonaccrual loans delinquent 60 days to 89 days | $ 1,694 | 1,481 | 2,098 | 1,549 | 1,033 | ||||
Nonaccrual loans delinquent 90 days or more: | |||||||||
Residential mortgage loans | $ 5,445 | 3,976 | 7,641 | 8,069 | 10,007 | ||||
Home equity loans | 2,081 | 2,968 | 4,262 | 4,745 | 6,256 | ||||
Consumer loans | 1,942 | 1,782 | 2,069 | 2,184 | 2,341 | ||||
Commercial real estate loans | 14,949 | 21,399 | 24,063 | 25,562 | 23,564 | ||||
Commercial loans | 583 | 795 | 1,105 | 1,104 | 4,126 | ||||
Total nonaccrual loans delinquent 90 days or more | $ 25,000 | 30,920 | 39,140 | 41,664 | 46,294 | ||||
Total nonaccrual loans | $ 98,385 | 124,161 | 158,471 | 176,942 | 206,761 | ||||
Total nonaccrual loans | $ 98,385 | 124,161 | 158,471 | 176,942 | 206,761 | ||||
Loans 90 days past due and still accruing | 379 | 420 | 331 | 386 | 302 | ||||
Nonperforming loans | 98,764 | 124,581 | 158,802 | 177,328 | 207,063 | ||||
Real estate owned, net | 1,205 | 929 | 873 | 809 | 1,353 | ||||
Nonperforming assets | $ 99,969 | 125,510 | 159,675 | 178,137 | 208,416 | ||||
Nonaccrual troubled debt restructuring * | $ 37,647 | 16,015 | 17,216 | 12,858 | 8,951 | ||||
Accruing troubled debt restructuring | 16,590 | 12,686 | 13,072 | 13,664 | 18,480 | ||||
Total troubled debt restructuring | $ 54,237 | 28,701 | 30,288 | 26,522 | 27,431 | ||||
Nonperforming loans to total loans | 0.95 % | 1.23 % | 1.59 % | 1.74 % | 2.01 % | ||||
Nonperforming assets to total assets | 0.71 % | 0.87 % | 1.10 % | 1.24 % | 1.46 % | ||||
Allowance for credit losses to total loans | 0.94 % | 0.98 % | 1.02 % | 1.08 % | 1.14 % | ||||
Allowance for total loans excluding PPP loan balances | 0.95 % | 0.98 % | 1.03 % | 1.09 % | 1.17 % | ||||
Allowance for credit losses to nonperforming loans | 99.59 % | 79.70 % | 64.38 % | 61.90 % | 56.66 % | ||||
* Amounts included in nonperforming loans above. |
Northwest Bancshares, Inc. and Subsidiaries | ||||||||||||
Loans by Credit Quality Indicators (Unaudited) | ||||||||||||
(dollars in thousands) | ||||||||||||
At June 30, 2022 | Pass | Special mention * | Substandard ** | Doubtful | Loss | Loans receivable | ||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 3,273,117 | — | 13,658 | — | — | 3,286,775 | ||||||
Home equity loans | 1,275,124 | — | 5,368 | — | — | 1,280,492 | ||||||
Consumer loans | 1,998,863 | — | 3,682 | — | — | 2,002,545 | ||||||
Total Personal Banking | 6,547,104 | — | 22,708 | — | — | 6,569,812 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,600,207 | 51,540 | 224,429 | — | — | 2,876,176 | ||||||
Commercial loans | 954,129 | 2,468 | 30,239 | — | — | 986,836 | ||||||
Total Commercial Banking | 3,554,336 | 54,008 | 254,668 | — | — | 3,863,012 | ||||||
Total loans | $ 10,101,440 | 54,008 | 277,376 | — | — | 10,432,824 | ||||||
At March 31, 2022 | ||||||||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 3,108,366 | — | 13,523 | — | — | 3,121,889 | ||||||
Home equity loans | 1,280,342 | — | 6,178 | — | — | 1,286,520 | ||||||
Consumer loans | 1,892,162 | — | 3,819 | — | — | 1,895,981 | ||||||
Total Personal Banking | 6,280,870 | — | 23,520 | — | — | 6,304,390 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,633,808 | 62,091 | 263,994 | — | — | 2,959,893 | ||||||
Commercial loans | 839,125 | 3,277 | 32,349 | — | — | 874,751 | ||||||
Total Commercial Banking | 3,472,933 | 65,368 | 296,343 | — | — | 3,834,644 | ||||||
Total loans | $ 9,753,803 | 65,368 | 319,863 | — | — | 10,139,034 | ||||||
At December 31, 2021 | ||||||||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 2,978,080 | — | 16,540 | — | — | 2,994,620 | ||||||
Home equity loans | 1,312,820 | — | 7,111 | — | — | 1,319,931 | ||||||
Consumer loans | 1,834,478 | — | 4,270 | — | — | 1,838,748 | ||||||
Total Personal Banking | 6,125,378 | — | 27,921 | — | — | 6,153,299 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,639,676 | 74,123 | 301,685 | — | — | 3,015,484 | ||||||
Commercial loans | 808,323 | 5,730 | 33,556 | — | — | 847,609 | ||||||
Total Commercial Banking | 3,447,999 | 79,853 | 335,241 | — | — | 3,863,093 | ||||||
Total loans | $ 9,573,377 | 79,853 | 363,162 | — | — | 10,016,392 | ||||||
At September 30, 2021 | ||||||||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 2,972,489 | — | 17,032 | — | — | 2,989,521 | ||||||
Home equity loans | 1,342,479 | — | 7,869 | — | — | 1,350,348 | ||||||
Consumer loans | 1,812,360 | — | 4,476 | — | — | 1,816,836 | ||||||
Total Personal Banking | 6,127,328 | — | 29,377 | — | — | 6,156,705 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,799,592 | 63,034 | 299,925 | — | — | 3,162,551 | ||||||
Commercial loans | 813,665 | 10,976 | 55,071 | — | — | 879,712 | ||||||
Total Commercial Banking | 3,613,257 | 74,010 | 354,996 | — | — | 4,042,263 | ||||||
Total loans | $ 9,740,585 | 74,010 | 384,373 | — | — | 10,198,968 | ||||||
At June 30, 2021 | ||||||||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 2,937,418 | — | 17,133 | — | — | 2,954,551 | ||||||
Home equity loans | 1,367,765 | — | 8,463 | — | — | 1,376,228 | ||||||
Consumer loans | 1,741,872 | — | 3,359 | — | — | 1,745,231 | ||||||
Total Personal Banking | 6,047,055 | — | 28,955 | — | — | 6,076,010 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,781,734 | 73,167 | 360,288 | — | — | 3,215,189 | ||||||
Commercial loans | 943,665 | 11,266 | 63,850 | — | — | 1,018,781 | ||||||
Total Commercial Banking | 3,725,399 | 84,433 | 424,138 | — | — | 4,233,970 | ||||||
Total loans | $ 9,772,454 | 84,433 | 453,093 | — | — | 10,309,980 | ||||||
* Includes $7.4 million, $4.4 million, $14.9 million, $16.7 million, and $16.7 million of acquired loans at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively. |
** Includes $59.3 million, $71.9 million, $81.5 million, $110.4 million, and $122.5 million of acquired loans at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively. |
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||||||||||||||||||||
Loan Delinquency (Unaudited) | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
June 30, | * | March 31, | * | December 31, | * | September 30, | * | June 30, | * | ||||||||||||||||||||
(Number of loans and dollar amount of loans) | |||||||||||||||||||||||||||||
Loans delinquent 30 days to 59 days: | |||||||||||||||||||||||||||||
Residential mortgage loans | 20 | $ 785 | — % | 281 | $ 24,057 | 0.8 % | 277 | $ 20,567 | 0.7 % | 17 | $ 765 | — % | 13 | $ 606 | — % | ||||||||||||||
Home equity loans | 107 | 3,664 | 0.3 % | 105 | 3,867 | 0.3 % | 112 | 3,153 | 0.2 % | 101 | 3,351 | 0.2 % | 91 | 3,677 | 0.3 % | ||||||||||||||
Consumer loans | 563 | 6,898 | 0.3 % | 523 | 6,043 | 0.3 % | 589 | 6,536 | 0.4 % | 576 | 6,146 | 0.3 % | 532 | 5,571 | 0.3 % | ||||||||||||||
Commercial real estate loans | 26 | 2,701 | 0.1 % | 25 | 3,643 | 0.1 % | 17 | 17,065 | 0.6 % | 19 | 2,004 | 0.1 % | 13 | 2,857 | 0.1 % | ||||||||||||||
Commercial loans | 24 | 1,486 | 0.2 % | 16 | 1,268 | 0.1 % | 12 | 193 | — % | 10 | 692 | 0.1 % | 15 | 686 | 0.1 % | ||||||||||||||
Total loans delinquent 30 days to 59 days | 740 | $ 15,534 | 0.1 % | 950 | $ 38,878 | 0.4 % | 1,007 | $ 47,514 | 0.5 % | 723 | $ 12,958 | 0.1 % | 664 | $ 13,397 | 0.1 % | ||||||||||||||
Loans delinquent 60 days to 89 days: | |||||||||||||||||||||||||||||
Residential mortgage loans | 61 | $ 5,941 | 0.2 % | 24 | $ 1,950 | 0.1 % | 59 | $ 5,433 | 0.2 % | 55 | $ 4,907 | 0.2 % | 58 | $ 4,051 | 0.1 % | ||||||||||||||
Home equity loans | 28 | 952 | 0.1 % | 28 | 1,138 | 0.1 % | 30 | 949 | 0.1 % | 29 | 1,024 | 0.1 % | 36 | 1,502 | 0.1 % | ||||||||||||||
Consumer loans | 178 | 1,460 | 0.1 % | 159 | 1,839 | 0.1 % | 195 | 2,006 | 0.1 % | 180 | 1,757 | 0.1 % | 181 | 1,988 | 0.1 % | ||||||||||||||
Commercial real estate loans | 9 | 1,472 | 0.1 % | 1 | 112 | — % | 5 | 769 | — % | 8 | 1,170 | — % | 9 | 1,335 | — % | ||||||||||||||
Commercial loans | 6 | 341 | — % | 3 | 103 | — % | 10 | 727 | 0.1 % | 2 | 170 | — % | 2 | 27 | — % | ||||||||||||||
Total loans delinquent 60 days to 89 days | 282 | $ 10,166 | 0.1 % | 215 | $ 5,142 | 0.1 % | 299 | $ 9,884 | 0.1 % | 274 | $ 9,028 | 0.1 % | 286 | $ 8,903 | 0.1 % | ||||||||||||||
Loans delinquent 90 days or more: ** | |||||||||||||||||||||||||||||
Residential mortgage loans | 63 | $ 5,445 | 0.2 % | 47 | $ 3,976 | 0.1 % | 87 | $ 7,641 | 0.3 % | 95 | $ 8,069 | 0.3 % | 115 | $ 10,007 | 0.3 % | ||||||||||||||
Home equity loans | 69 | 2,081 | 0.2 % | 91 | 2,968 | 0.2 % | 105 | 4,262 | 0.3 % | 119 | 4,745 | 0.4 % | 146 | 6,256 | 0.5 % | ||||||||||||||
Consumer loans | 286 | 2,321 | 0.1 % | 287 | 2,202 | 0.1 % | 296 | 2,400 | 0.1 % | 308 | 2,568 | 0.1 % | 356 | 2,643 | 0.2 % | ||||||||||||||
Commercial real estate loans | 31 | 14,949 | 0.5 % | 41 | 21,399 | 0.7 % | 52 | 24,063 | 0.8 % | 59 | 25,562 | 0.8 % | 83 | 23,564 | 0.7 % | ||||||||||||||
Commercial loans | 10 | 583 | 0.1 % | 10 | 795 | 0.1 % | 8 | 1,105 | 0.1 % | 10 | 1,104 | 0.1 % | 18 | 4,126 | 0.4 % | ||||||||||||||
Total loans delinquent 90 days or more | 459 | $ 25,379 | 0.2 % | 476 | $ 31,340 | 0.3 % | 548 | $ 39,471 | 0.4 % | 591 | $ 42,048 | 0.4 % | 718 | $ 46,596 | 0.5 % | ||||||||||||||
Total loans delinquent | 1,481 | $ 51,079 | 0.5 % | 1,641 | $ 75,360 | 0.7 % | 1,854 | $ 96,869 | 1.0 % | 1,588 | $ 64,034 | 0.6 % | 1,668 | $ 68,896 | 0.7 % | ||||||||||||||
* Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding. |
** Includes purchased credit deteriorated loans of $6.3 million, $7.1 million, $7.3 million, $8.4 million, and $10.3 million at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively. |
Northwest Bancshares, Inc. and Subsidiaries | |||||||||
Allowance for Credit Losses (Unaudited) | |||||||||
(dollars in thousands) | |||||||||
Quarter ended | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
Beginning balance | $ 99,295 | 102,241 | 109,767 | 117,330 | 123,997 | ||||
Provision | 2,629 | (1,481) | (1,909) | (4,354) | — | ||||
Charge-offs residential mortgage | (138) | (1,183) | (784) | (1,263) | (770) | ||||
Charge-offs home equity | (255) | (447) | (1,299) | (1,474) | (379) | ||||
Charge-offs consumer | (1,912) | (1,723) | (2,897) | (2,148) | (2,401) | ||||
Charge-offs commercial real estate | (4,392) | (1,024) | (2,652) | (1,581) | (3,964) | ||||
Charge-offs commercial | (329) | (681) | (2,586) | (412) | (1,161) | ||||
Recoveries | 3,457 | 3,593 | 4,601 | 3,669 | 2,008 | ||||
Ending balance | $ 98,355 | 99,295 | 102,241 | 109,767 | 117,330 | ||||
Net charge-offs to average loans, annualized | 0.14 % | 0.06 % | 0.22 % | 0.12 % | 0.26 % | ||||
Six months ended June 30, | |||
2022 | 2021 | ||
Beginning balance | $ 102,241 | 134,427 | |
Provision | 1,148 | (5,620) | |
Charge-offs residential mortgage | (1,321) | (1,625) | |
Charge-offs home equity | (702) | (607) | |
Charge-offs consumer | (3,635) | (5,004) | |
Charge-offs commercial real estate | (5,416) | (8,590) | |
Charge-offs commercial | (1,010) | (1,215) | |
Recoveries | 7,050 | 5,564 | |
Ending balance | $ 98,355 | 117,330 | |
Net charge-offs to average loans, annualized | 0.10 % | 0.22 % | |
Northwest Bancshares, Inc. and Subsidiaries |
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 | |||||||||||||||||||||||||||||
June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | |||||||||||||||||||||||||
Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | |||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||
Residential mortgage loans | $ 3,171,469 | 27,327 | 3.45 % | $ 2,980,788 | 25,542 | 3.43 % | $ 2,977,942 | 25,269 | 3.39 % | $ 2,959,794 | 25,398 | 3.43 % | $ 2,935,034 | 25,609 | 3.49 % | ||||||||||||||
Home equity loans | 1,277,440 | 11,961 | 3.76 % | 1,293,986 | 11,472 | 3.60 % | 1,328,553 | 11,750 | 3.51 % | 1,356,131 | 11,993 | 3.51 % | 1,380,794 | 12,232 | 3.55 % | ||||||||||||||
Consumer loans | 1,880,769 | 15,777 | 3.36 % | 1,799,037 | 14,907 | 3.36 % | 1,756,620 | 15,514 | 3.50 % | 1,728,563 | 16,220 | 3.72 % | 1,589,739 | 14,555 | 3.67 % | ||||||||||||||
Commercial real estate loans | 2,915,750 | 31,844 | 4.32 % | 3,000,204 | 29,757 | 3.97 % | 3,113,924 | 34,062 | 4.28 % | 3,205,839 | 35,305 | 4.31 % | 3,257,810 | 33,349 | 4.05 % | ||||||||||||||
Commercial loans | 912,454 | 9,090 | 3.94 % | 824,770 | 6,897 | 3.34 % | 855,998 | 9,154 | 4.18 % | 975,603 | 9,096 | 3.65 % | 1,133,969 | 9,978 | 3.48 % | ||||||||||||||
Total loans receivable (a) (b) (d) | 10,157,882 | 95,999 | 3.79 % | 9,898,785 | 88,575 | 3.63 % | 10,033,037 | 95,749 | 3.79 % | 10,225,930 | 98,012 | 3.80 % | 10,297,346 | 95,723 | 3.73 % | ||||||||||||||
Mortgage-backed securities (c) | 1,952,375 | 7,158 | 1.47 % | 1,945,173 | 6,360 | 1.31 % | 1,894,683 | 5,743 | 1.21 % | 1,832,876 | 5,840 | 1.27 % | 1,756,227 | 5,680 | 1.29 % | ||||||||||||||
Investment securities (c) (d) | 376,935 | 1,590 | 1.69 % | 373,694 | 1,540 | 1.65 % | 358,558 | 1,535 | 1.71 % | 348,619 | 1,466 | 1.68 % | 364,414 | 1,466 | 1.61 % | ||||||||||||||
FHLB stock, at cost | 13,428 | 82 | 2.44 % | 13,870 | 81 | 2.38 % | 14,459 | 82 | 2.25 % | 21,607 | 71 | 1.31 % | 23,107 | 138 | 2.40 % | ||||||||||||||
Other interest-earning deposits | 846,142 | 1,684 | 0.79 % | 1,218,960 | 467 | 0.15 % | 1,168,449 | 467 | 0.16 % | 905,130 | 352 | 0.15 % | 810,741 | 192 | 0.09 % | ||||||||||||||
Total interest-earning assets | 13,346,762 | 106,513 | 3.20 % | 13,450,482 | 97,023 | 2.93 % | 13,469,186 | 103,576 | 3.05 % | 13,334,162 | 105,741 | 3.15 % | 13,251,835 | 103,199 | 3.12 % | ||||||||||||||
Noninterest-earning assets (e) | 909,943 | 973,092 | 1,004,905 | 1,074,122 | 1,104,924 | ||||||||||||||||||||||||
Total assets | $ 14,256,705 | $ 14,423,574 | $ 14,474,091 | $ 14,408,284 | $ 14,356,759 | ||||||||||||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||
Savings deposits | $ 2,361,919 | 589 | 0.10 % | $ 2,334,494 | 592 | 0.10 % | $ 2,282,606 | 622 | 0.11 % | $ 2,271,365 | 603 | 0.11 % | $ 2,255,578 | 590 | 0.10 % | ||||||||||||||
Interest-bearing demand deposits | 2,857,336 | 310 | 0.04 % | 2,875,430 | 321 | 0.05 % | 2,933,466 | 411 | 0.06 % | 2,890,905 | 414 | 0.06 % | 2,840,949 | 407 | 0.06 % | ||||||||||||||
Money market deposit accounts | 2,653,467 | 668 | 0.10 % | 2,668,105 | 653 | 0.10 % | 2,618,177 | 656 | 0.10 % | 2,565,159 | 637 | 0.10 % | 2,537,629 | 621 | 0.10 % | ||||||||||||||
Time deposits | 1,220,815 | 1,774 | 0.58 % | 1,292,608 | 2,185 | 0.69 % | 1,356,513 | 2,606 | 0.76 % | 1,423,041 | 2,886 | 0.80 % | 1,493,947 | 3,155 | 0.85 % | ||||||||||||||
Borrowed funds (f) | 123,749 | 167 | 0.54 % | 135,289 | 158 | 0.47 % | 135,038 | 159 | 0.47 % | 131,199 | 154 | 0.47 % | 131,240 | 150 | 0.46 % | ||||||||||||||
Subordinated debt (g) | 119,563 | 1,203 | 4.03 % | 123,608 | 1,250 | 4.05 % | 123,514 | 1,180 | 3.82 % | 123,513 | 1,277 | 4.10 % | 123,443 | 1,264 | 4.11 % | ||||||||||||||
Junior subordinated debentures | 129,142 | 920 | 2.82 % | 129,077 | 651 | 2.02 % | 129,012 | 625 | 1.89 % | 128,946 | 625 | 1.90 % | 128,882 | 636 | 1.95 % | ||||||||||||||
Total interest-bearing liabilities | 9,465,991 | 5,631 | 0.24 % | 9,558,611 | 5,810 | 0.25 % | 9,578,326 | 6,259 | 0.26 % | 9,534,128 | 6,596 | 0.27 % | 9,511,668 | 6,823 | 0.29 % | ||||||||||||||
Noninterest-bearing demand deposits (h) | 3,090,372 | 3,060,698 | 3,093,518 | 3,058,819 | 3,036,202 | ||||||||||||||||||||||||
Noninterest-bearing liabilities | 193,510 | 203,537 | 242,620 | 244,402 | 247,930 | ||||||||||||||||||||||||
Total liabilities | 12,749,873 | 12,822,846 | 12,914,464 | 12,837,349 | 12,795,800 | ||||||||||||||||||||||||
Shareholders' equity | 1,506,832 | 1,600,728 | 1,559,627 | 1,570,935 | 1,560,959 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ 14,256,705 | $ 14,423,574 | $ 14,474,091 | $ 14,408,284 | $ 14,356,759 | ||||||||||||||||||||||||
Net interest income/Interest rate spread | 100,882 | 2.96 % | 91,213 | 2.68 % | 97,317 | 2.79 % | 99,145 | 2.87 % | 96,376 | 2.84 % | |||||||||||||||||||
Net interest-earning assets/Net interest margin | $ 3,880,771 | 3.07 % | $ 3,891,871 | 2.75 % | $ 3,890,860 | 2.89 % | $ 3,800,034 | 2.97 % | $ 3,740,167 | 2.91 % | |||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.41X | 1.41X | 1.41X | 1.40X | 1.39X | ||||||||||||||||||||||||
(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) | On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity of September 15, 2030. |
(h) | Average cost of deposits were 0.11%, 0.12%, 0.14%, 0.15%, and 0.16%, respectively. |
(i) | Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans — 3.77%, 3.61%, 3.77%, 3.79%, and 3.71%, respectively, Investment securities — 1.48%, 1.45%, 1.48%, 1.47%, and 1.41%, respectively, Interest-earning assets — 3.18%, 2.91%, 3.03%, 3.13%, and 3.10%, respectively. GAAP basis net interest rate spreads were 2.94%, 2.66%, 2.77%, 2.86%, and 2.82%, respectively, and GAAP basis net interest margins were 3.05%, 2.73%, 2.87%, 2.95%, and 2.89%, respectively. |
Northwest Bancshares, Inc. and Subsidiaries |
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on interest-earning assets and average cost of interest-bearing 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. |
Six months ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | ||||||
Assets | |||||||||||
Interest-earning assets: | |||||||||||
Residential mortgage loans | $ 3,077,155 | 52,868 | 3.44 % | $ 2,971,037 | 51,975 | 3.50 % | |||||
Home equity loans | 1,285,668 | 23,433 | 3.68 % | 1,406,260 | 25,046 | 3.57 % | |||||
Consumer loans | 1,840,110 | 30,684 | 3.36 % | 1,526,861 | 29,121 | 3.82 % | |||||
Commercial real estate loans | 2,957,744 | 61,601 | 4.14 % | 3,285,696 | 71,820 | 4.32 % | |||||
Commercial loans | 868,854 | 15,987 | 3.66 % | 1,161,736 | 20,543 | 3.50 % | |||||
Loans receivable (a) (b) (d) | 10,029,531 | 184,573 | 3.71 % | 10,351,590 | 198,505 | 3.85 % | |||||
Mortgage-backed securities (c) | 1,948,794 | 13,518 | 1.39 % | 1,541,585 | 9,880 | 1.28 % | |||||
Investment securities (c) (d) | 375,323 | 3,130 | 1.67 % | 347,977 | 2,847 | 1.64 % | |||||
FHLB stock, at cost | 13,648 | 163 | 2.41 % | 22,462 | 254 | 2.27 % | |||||
Other interest-earning deposits | 1,003,627 | 2,151 | 0.43 % | 805,930 | 375 | 0.09 % | |||||
Total interest-earning assets | 13,370,923 | 203,535 | 3.07 % | 13,069,544 | 211,861 | 3.25 % | |||||
Noninterest-earning assets (e) | 969,111 | 1,103,734 | |||||||||
Total assets | $ 14,340,034 | $ 14,173,278 | |||||||||
Liabilities and shareholders' equity | |||||||||||
Interest-bearing liabilities: | |||||||||||
Savings deposits | $ 2,348,282 | 1,181 | 0.10 % | $ 2,187,184 | 1,215 | 0.11 % | |||||
Interest-bearing demand deposits | 2,866,333 | 631 | 0.04 % | 2,812,348 | 836 | 0.06 % | |||||
Money market deposit accounts | 2,660,745 | 1,321 | 0.10 % | 2,517,673 | 1,278 | 0.10 % | |||||
Time deposits | 1,256,513 | 3,959 | 0.64 % | 1,538,489 | 6,959 | 0.91 % | |||||
Borrowed funds (f) | 129,487 | 324 | 0.50 % | 137,488 | 303 | 0.44 % | |||||
Subordinated debt (g) | 121,574 | 2,454 | 4.04 % | 123,400 | 2,522 | 4.10 % | |||||
Junior subordinated debentures | 129,109 | 1,571 | 2.42 % | 128,850 | 1,278 | 1.96 % | |||||
Total interest-bearing liabilities | 9,512,043 | 11,441 | 0.24 % | 9,445,432 | 14,391 | 0.31 % | |||||
Noninterest-bearing demand deposits (h) | 3,075,617 | 2,921,343 | |||||||||
Noninterest-bearing liabilities | 198,854 | 256,748 | |||||||||
Total liabilities | 12,786,514 | 12,623,523 | |||||||||
Shareholders' equity | 1,553,520 | 1,549,755 | |||||||||
Total liabilities and shareholders' equity | $ 14,340,034 | $ 14,173,278 | |||||||||
Net interest income/Interest rate spread | 192,094 | 2.83 % | 197,470 | 2.94 % | |||||||
Net interest-earning assets/Net interest margin | $ 3,858,880 | 2.87 % | $ 3,624,112 | 3.02 % | |||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.41X | 1.38X | |||||||||
(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 were 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) | On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity of September 15, 2030. |
(h) | Average cost of deposits were 0.12% and 0.17%, respectively. |
(i) | Shown on a FTE basis. GAAP basis yields were: Loans — 3.69% and 3.83%, respectively; Investment securities — 1.46% and 1.43%, respectively; Interest-earning assets — 3.05% and 3.23%, respectively. GAAP basis net interest rate spreads were 2.81% and 2.92%, respectively; and GAAP basis net interest margins were 2.86% and 3.00%, respectively. |
SOURCE Northwest Bancshares, Inc.
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