Northwest Bancshares, Inc. Announces Third Quarter 2023 Earnings and Quarterly Dividend

 Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(dollars in thousands, except per share amounts)

September 30,
2023

December 31,
2022

September 30,
2022

Assets

Cash and cash equivalents

$       161,995

139,365

118,549

Marketable securities available-for-sale (amortized cost of $1,262,080, $1,431,728 and $1,466,883,
respectively)

1,010,076

1,218,108

1,251,791

Marketable securities held-to-maturity (fair value of $682,681, $751,384 and $771,238, respectively)

830,106

881,249

899,411

Total cash and cash equivalents and marketable securities

2,002,177

2,238,722

2,269,751

Loans held-for-sale

10,592

9,913

15,834

Residential mortgage loans

3,462,606

3,488,686

3,386,064

Home equity loans

1,258,765

1,297,674

1,284,989

Consumer loans

2,155,119

2,168,655

2,116,238

Commercial real estate loans

2,922,582

2,823,555

2,812,830

Commercial loans

1,500,609

1,131,969

1,125,570

Total loans receivable

11,310,273

10,920,452

10,741,525

Allowance for credit losses

(124,841)

(118,036)

(109,819)

Loans receivable, net

11,185,432

10,802,416

10,631,706

FHLB stock, at cost

40,404

40,143

19,281

Accrued interest receivable

42,624

35,528

29,536

Real estate owned, net

363

413

450

Premises and equipment, net

138,041

145,909

146,173

Bank-owned life insurance

250,502

255,062

255,015

Goodwill

380,997

380,997

380,997

Other intangible assets, net

6,013

8,560

9,491

Other assets

315,648

205,574

210,744

Total assets

$   14,362,201

14,113,324

13,953,144

Liabilities and shareholders' equity

Liabilities

Noninterest-bearing demand deposits

$     2,774,291

2,993,243

3,094,120

Interest-bearing demand deposits

2,598,080

2,686,431

2,812,730

Money market deposit accounts

2,042,813

2,457,569

2,577,013

Savings deposits

2,116,360

2,275,020

2,327,419

Time deposits

2,258,338

1,052,285

1,067,110

Total deposits

11,789,882

11,464,548

11,878,392

Borrowed funds

604,587

681,166

150,036

Subordinated debt

114,102

113,840

113,753

Junior subordinated debentures

129,509

129,314

129,249

Advances by borrowers for taxes and insurance

27,653

47,613

29,647

Accrued interest payable

7,915

3,231

831

Other liabilities

190,122

182,126

191,450

Total liabilities

12,863,770

12,621,838

12,493,358

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, 127,101,349, 127,028,848 and
126,921,989 shares issued and outstanding, respectively

1,271

1,270

1,269

Additional paid-in capital

1,023,591

1,019,647

1,017,189

Retained earnings

671,092

641,727

632,476

Accumulated other comprehensive loss

(197,523)

(171,158)

(191,148)

Total shareholders' equity

1,498,431

1,491,486

1,459,786

Total liabilities and shareholders' equity

$   14,362,201

14,113,324

13,953,144

Equity to assets

10.43 %

10.57 %

10.46 %

Tangible common equity to assets*

7.95 %

8.03 %

7.88 %

Book value per share

$           11.79

11.74

11.50

Tangible book value per share*

$             8.74

8.67

8.42

Closing market price per share

$           10.23

13.98

13.51

Full time equivalent employees

2,084

2,160

2,191

Number of banking offices

142

150

150

*          Excludes goodwill and other intangible assets (non-GAAP).  See reconciliation of non-GAAP financial measures for additional information relating to these items.

Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)

Quarter ended

September 30,
2023

June 30,
2023

March 31,
2023

December 31,
2022

September 30,
2022

Interest income:

Loans receivable

$      140,667

132,724

123,745

117,137

106,943

Mortgage-backed securities

8,072

8,326

8,537

8,603

8,683

Taxable investment securities

786

841

845

840

838

Tax-free investment securities

491

667

700

701

709

FHLB stock dividends

668

844

690

419

148

Interest-earning deposits

914

594

423

153

1,295

Total interest income

151,598

143,996

134,940

127,853

118,616

Interest expense:

Deposits

31,688

21,817

11,238

3,871

3,157

Borrowed funds

11,542

13,630

11,238

6,938

2,710

Total interest expense

43,230

35,447

22,476

10,809

5,867

Net interest income

108,368

108,549

112,464

117,044

112,749

Provision for credit losses - loans

3,983

6,010

4,870

9,023

7,689

Provision for credit losses - unfunded commitments (1)

(2,981)

2,920

126

1,876

3,585

Net interest income after provision for credit losses

107,366

99,619

107,468

106,145

101,475

Noninterest income:

Loss on sale of investments

—

(8,306)

—

(1)

(2)

Gain on sale of mortgage servicing rights

—

8,305

—

—

—

Gain on sale of SBA loans

301

832

279

—

—

Service charges and fees

15,270

14,833

13,189

14,125

14,323

Trust and other financial services income

7,085

6,866

6,449

6,642

6,650

Gain on real estate owned, net

29

785

108

51

290

Income from bank-owned life insurance

4,561

1,304

1,269

1,663

1,475

Mortgage banking income

632

1,028

524

477

766

Other operating income

3,010

4,150

2,151

4,901

3,301

Total noninterest income

30,888

29,797

23,969

27,858

26,803

Noninterest expense:

Compensation and employee benefits

51,243

47,650

46,604

46,658

46,711

Premises and occupancy costs

7,052

7,579

7,471

7,370

7,171

Office operations

3,398

2,800

3,010

3,544

3,229

Collections expense

551

429

387

563

322

Processing expenses

14,672

14,648

14,350

13,585

13,416

Marketing expenses

2,379

2,856

2,892

2,773

2,147

Federal deposit insurance premiums

2,341

2,064

2,223

1,319

1,200

Professional services

3,002

3,804

4,758

5,434

3,363

Amortization of intangible assets

795

842

909

932

1,047

Real estate owned expense

141

83

181

53

61

Merger, asset disposition and restructuring expense

—

1,593

2,802

4,243

—

Other expenses

1,996

1,510

1,863

2,304

321

Total noninterest expense

87,570

85,858

87,450

88,778

78,988

Income before income taxes

50,684

43,558

43,987

45,225

49,290

Income tax expense

11,464

10,514

10,308

10,576

11,986

Net income

$        39,220

33,044

33,679

34,649

37,304

Basic earnings per share

$            0.31

0.26

0.27

0.27

0.29

Diluted earnings per share

$            0.31

0.26

0.26

0.27

0.29

Annualized return on average equity

10.27 %

8.72 %

9.11 %

9.38 %

9.84 %

Annualized return on average assets

1.08 %

0.93 %

0.97 %

0.98 %

1.05 %

Annualized return on tangible common equity *

14.00 %

11.79 %

12.15 %

12.48 %

13.84 %

Efficiency ratio

62.88 %

62.06 %

64.10 %

61.27 %

56.60 %

Efficiency ratio, excluding certain items (1) **

62.31 %

60.30 %

61.38 %

57.70 %

55.85 %

Annualized noninterest expense to average assets

2.42 %

2.42 %

2.51 %

2.52 %

2.23 %

Annualized noninterest expense to average assets, excluding certain items (1) **

2.39 %

2.35 %

2.40 %

2.37 %

2.20 %

(1)

Reclassified from other expenses for periods prior to March 31, 2023. Respective ratios updated for reclassification.

*

Excludes goodwill and other intangible assets (non-GAAP).  See reconciliation of non-GAAP financial measures for additional information relating to these items.

**

Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).See reconciliation of non-GAAP financial measures for additional information relating to these items.

Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)

Nine months ended September 30,

2023

2022

Interest income:

Loans receivable

$            397,136

290,691

Mortgage-backed securities

24,935

22,201

Taxable investment securities

2,472

2,230

Tax-free investment securities

1,858

2,066

FHLB stock dividends

2,202

311

Interest-earning deposits

1,931

3,446

Total interest income

430,534

320,945

Interest expense:

Deposits

64,743

10,249

Borrowed funds

36,410

7,059

Total interest expense

101,153

17,308

Net interest income

329,381

303,637

Provision for credit losses - loans

14,863

8,837

Provision for credit losses - unfunded commitments (1)

65

8,577

Net interest income after provision for credit losses

314,453

286,223

Noninterest income:

Loss on sale of investments

(8,306)

(7)

Gain on sale of mortgage servicing rights

8,305

—

Gain on sale of SBA loans

1,412

—

Service charges and fees

43,292

41,063

Trust and other financial services income

20,400

21,123

Gain on real estate owned, net

922

552

Income from bank-owned life insurance

7,134

5,466

Mortgage banking income

2,184

4,388

Other operating income

9,311

10,406

Total noninterest income

84,654

82,991

Noninterest expense:

Compensation and employee benefits

145,497

141,701

Premises and occupancy costs

22,102

22,248

Office operations

9,208

9,774

Collections expense

1,367

1,245

Processing expenses

43,670

38,911

Marketing expenses

8,127

6,322

Federal deposit insurance premiums

6,628

3,459

Professional services

11,564

9,269

Amortization of intangible assets

2,546

3,345

Real estate owned expense

405

170

Merger, asset disposition and restructuring expense

4,395

1,374

Other expenses

5,369

2,929

Total noninterest expense

260,878

240,747

Income before income taxes

138,229

128,467

Income tax expense

32,286

29,450

Net income

$            105,943

99,017

Basic earnings per share

$                  0.83

0.78

Diluted earnings per share

$                  0.83

0.78

Annualized return on average equity

9.37 %

8.61 %

Annualized return on average assets

0.99 %

0.93 %

Annualized return on tangible common equity *

12.74 %

12.38 %

Efficiency ratio

63.01 %

62.27 %

Efficiency ratio, excluding certain items (1) **

61.33 %

61.05 %

Annualized noninterest expense to average assets

2.45 %

2.26 %

Annualized noninterest expense to average assets, excluding certain items (1) **

2.38 %

2.22 %

(1)

Reclassified from other expenses for periods prior to March 31, 2023.  Respective ratios updated for reclassification.

*

Excludes goodwill and other intangible assets (non-GAAP).  See reconciliation of non-GAAP financial measures for additional information relating to these items.

**

Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).  See reconciliation of non-GAAP financial measures for additional information relating to these items.

Northwest Bancshares, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited) *
(dollars in thousands, except per share amounts)

Quarter ended September 30,

Nine months ended September 30,

2023

2022

2023

2022

Reconciliation of net income to adjusted net operating income:

Net income (GAAP)

$          39,220

37,304

105,943

99,017

Non-GAAP adjustments

Add: merger, asset disposition and restructuring expense

—

—

4,395

1,374

Less: tax benefit of merger, asset disposition and restructuring expense

—

—

(1,231)

(385)

Adjusted net operating income (non-GAAP)

$          39,220

37,304

109,107

100,006

Diluted earnings per share (GAAP)

$             0.31

0.29

0.83

0.78

Diluted adjusted operating earnings per share (non-GAAP)

$             0.31

0.29

0.86

0.79

Average equity

$     1,515,287

1,503,626

1,511,428

1,536,706

Average assets

14,379,323

14,052,919

14,249,857

14,243,277

Annualized return on average equity (GAAP)

10.27 %

9.84 %

9.37 %

8.61 %

Annualized return on average assets (GAAP)

1.08 %

1.05 %

0.99 %

0.93 %

Annualized return on average equity, excluding merger, asset disposition and
restructuring expense, net of tax (non-GAAP)

10.27 %

9.84 %

9.65 %

8.70 %

Annualized return on average assets, excluding merger, asset disposition and
restructuring expense, net of tax (non-GAAP)

1.08 %

1.05 %

1.02 %

0.94 %

The following non-GAAP financial measures used by the Company provide information useful to investors in understanding our operating performance and trends, and facilitate comparisons with the performance of our peers. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's Consolidated Statements of Financial Condition.

September 30,
2023

December 31,
2022

September 30,
2022

Tangible common equity to assets

Total shareholders' equity

$       1,498,431

1,491,486

1,459,786

  Less: goodwill and intangible assets

(387,010)

(389,557)

(390,488)

Tangible common equity

$       1,111,421

1,101,929

1,069,298

Total assets

$     14,362,201

14,113,324

13,953,144

Less: goodwill and intangible assets

(387,010)

(389,557)

(390,488)

  Tangible assets

$     13,975,191

13,723,767

13,562,656

Tangible common equity to tangible assets

7.95 %

8.03 %

7.88 %

Tangible common equity to tangible assets, including unrealized losses on held-to-maturity
investments

Tangible common equity

$       1,111,421

1,101,929

1,069,298

Less: unrealized losses on held to maturity investments

(147,425)

(129,865)

(128,174)

Add: deferred taxes on unrealized losses on held to maturity investments

41,279

36,362

35,889

Tangible common equity, including unrealized losses on held-to-maturity investments

$       1,005,275

1,008,426

977,013

Tangible assets

13,975,191

13,723,767

13,562,656

Tangible common equity to tangible assets, including unrealized losses on held-to-maturity
investments

7.19 %

7.35 %

7.20 %

Tangible book value per share

Tangible common equity

$       1,111,421

1,101,929

1,069,298

Common shares outstanding

127,101,349

127,028,848

126,921,989

Tangible book value per share

8.74

8.67

8.42

Northwest Bancshares, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited) *
(dollars in thousands, except per share amounts)

The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's Consolidated Statements of Income.

Quarter ended

Nine months ended September 30,

September 30,
2023

June 30,
2023

March 31,
2023

December 31,
2022

September 30,
2022

2023

2022

Annualized return on tangible common equity

Net income

$        39,220

33,044

33,679

34,649

37,304

105,943

99,017

Total shareholders' equity

1,498,431

1,511,501

1,513,275

1,491,486

1,459,786

1,498,431

1,459,786

Less: goodwill and intangible assets

(387,010)

(387,806)

(388,648)

(389,557)

(390,488)

(387,010)

(390,488)

Tangible common equity

$   1,111,421

1,123,695

1,124,627

1,101,929

1,069,298

1,111,421

1,069,298

Annualized return on tangible common equity

14.00 %

11.79 %

12.15 %

12.48 %

13.84 %

12.74 %

12.38 %

Efficiency ratio, excluding amortization and merger, asset disposition and
restructuring expenses

Non-interest expense

$        87,570

85,858

87,450

88,778

78,988

260,878

240,747

Less: amortization expense

(795)

(842)

(909)

(932)

(1,047)

(2,546)

(3,345)

Less: merger, asset disposition and restructuring expenses

—

(1,593)

(2,802)

(4,243)

—

(4,395)

(1,374)

Non-interest expense, excluding amortization and merger, assets disposition and
restructuring expenses

$        86,775

83,423

83,739

83,603

77,941

253,937

236,028

Net interest income

$      108,368

108,549

112,464

117,044

112,749

329,381

303,637

Non-interest income

30,888

29,797

23,969

27,858

26,803

84,654

82,991

Net interest income plus non-interest income

$      139,256

138,346

136,433

144,902

139,552

414,035

386,628

Efficiency ratio, excluding amortization and merger, asset disposition and restructuring
expenses

62.31 %

60.30 %

61.38 %

57.70 %

55.85 %

61.33 %

61.05 %

Annualized non-interest expense to average assets, excluding amortization and
merger, asset disposition and restructuring expense

Non-interest expense excluding amortization and merger, asset disposition and
restructuring expenses

86,775

83,423

83,739

83,603

77,941

253,937

236,028

Average assets

14,379,323

14,245,917

14,121,496

13,983,100

14,052,919

14,249,857

14,243,277

Annualized non-interest expense to average assets, excluding amortization and merger,
asset disposition and restructuring expense

2.39 %

2.35 %

2.40 %

2.37 %

2.20 %

2.38 %

2.22 %

*

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 merger, asset disposition and restructuring 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.

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

Generally, deposits in excess of $250,000 are not federally insured. The following table provides details regarding the Company's uninsured deposits portfolio:

As of September 30, 2023

Balance

Percent of
total deposits

Number of
relationships

Uninsured deposits per the Call Report (1)

$              2,868,596

25.10 %

4,943

Less intercompany deposit accounts

922,235

7.82 %

13

Less collateralized deposit accounts

524,715

4.45 %

274

Adjusted balance of uninsured deposits

$              1,421,646

12.06 %

4,656

(1)

Uninsured deposits presented may be different from actual amounts due to titling of accounts.

Our largest uninsured depositor, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $25.8 million, or 0.22% of total deposits, as of September 30, 2023. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $117.0 million, or 0.99% of total deposits, as of September 30, 2023. The average adjusted uninsured deposit account balance was $305,000 as of September 30, 2023.

The following table provides additional details over the Company's deposit portfolio:

As of September 30, 2023

Balance

Percent of
total deposits

Number of
accounts

Personal noninterest bearing demand deposits

$              1,375,144

11.66 %

290,763

Business noninterest bearing demand deposits

1,399,147

11.87

45,435

Personal interest-bearing demand deposits

1,477,617

12.53

59,309

Business interest-bearing demand deposits

1,120,463

9.50

8,110

Personal money market deposits

1,463,689

12.42

25,884

Business money market deposits

579,124

4.91

2,916

Savings deposits

2,116,360

17.95

210,196

Time deposits

2,258,338

19.16

70,762

Total deposits

$            11,789,882

100.00 %

713,375

Our average deposit account balance as of September 30, 2023 was $16,500. The Company's insured cash sweep deposit balance was $265.3 million as of September 30, 2023.

The following table provides additional details regarding the Company's deposit portfolio over time:

3/31/2022

6/30/2022

9/30/2022

12/31/2022

3/31/2023

6/30/2023

9/30/2023

Personal noninterest bearing demand deposits

$   1,413,732

1,388,690

1,413,781

1,412,227

1,428,232

1,397,167

1,375,144

Business noninterest bearing demand deposits

1,715,117

1,669,559

1,680,339

1,581,016

1,467,860

1,423,396

1,399,147

Personal interest-bearing demand deposits

1,787,295

1,785,761

1,742,173

1,718,806

1,627,546

1,535,254

1,477,617

Business interest-bearing demand deposits

588,850

529,357

498,937

499,059

466,105

624,252

689,914

Municipal demand deposits

515,477

543,573

571,620

468,566

447,852

418,147

430,549

Personal money market deposits

1,999,564

1,994,907

1,949,379

1,832,583

1,626,614

1,511,652

1,463,689

Business money market deposits

681,049

636,805

627,634

624,986

701,436

642,601

579,124

Savings deposits

2,367,438

2,362,725

2,327,419

2,275,020

2,194,743

2,120,215

2,116,360

Time deposits

1,251,878

1,155,878

1,067,110

1,052,285

1,576,791

1,989,711

2,258,338

Total deposits

$  12,320,400

12,067,255

11,878,392

11,464,548

11,537,179

11,662,395

11,789,882

Northwest Bancshares, Inc. and Subsidiaries
Marketable Securities (Unaudited)
(dollars in thousands)

September 30, 2023

Marketable securities available-for-sale

Amortized cost

Gross unrealized

holding gains

Gross unrealized

holding losses

Fair value

Weighted average
duration

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

Due after one year through five years

$              20,000

—

(1,750)

18,250

3.12

Due after ten years

50,166

—

(11,890)

38,276

6.20

   Debt issued by government sponsored enterprises:

   Due after one year through five years

45,985

—

(7,502)

38,483

4.58

   Due after five years through ten years

434

—

(11)

423

1.94

   Municipal securities:

Due after one year through five years

954

3

(9)

948

3.64

   Due after five years through ten years

21,976

—

(3,055)

18,921

7.05

   Due after ten years

62,990

—

(14,788)

48,202

10.76

   Corporate debt issues:

   Due after five years through ten years

8,464

—

(1,000)

7,464

5.49

   Residential mortgage-backed agency securities:

   Fixed rate pass-through

213,849

—

(35,305)

178,544

6.17

   Variable rate pass-through

7,501

2

(169)

7,334

4.01

   Fixed rate agency CMOs

805,086

—

(175,985)

629,101

4.88

   Variable rate agency CMOs

24,675

28

(573)

24,130

3.37

   Total residential mortgage-backed agency securities

1,051,111

30

(212,032)

839,109

5.10

   Total marketable securities available-for-sale

$         1,262,080

33

(252,037)

1,010,076

5.40

Marketable securities held-to-maturity

Government sponsored

Due after one year through five years

$              49,471

—

(6,830)

42,641

3.75

Due after five years through ten years

74,986

—

(14,901)

60,085

5.43

   Residential mortgage-backed agency securities:

   Fixed rate pass-through

151,411

—

(27,070)

124,341

5.18

   Variable rate pass-through

468

—

(8)

460

3.48

   Fixed rate agency CMOs

553,241

—

(98,606)

454,635

5.85

   Variable rate agency CMOs

529

—

(10)

519

5.40

   Total residential mortgage-backed agency securities

705,649

—

(125,694)

579,955

5.71

   Total marketable securities held-to-maturity

$            830,106

—

(147,425)

682,681

5.56

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

September 30, 2023

Amount

Average rate

Term notes payable to the FHLB of Pittsburgh, due within one year

$                        375,400

5.65 %

Notes payable to the FHLB of Pittsburgh, due within one year

119,000

5.68 %

      Total term notes payable to the FHLB

494,400

Collateralized borrowings, due within one year

48,587

1.52 %

Collateral received, due within one year

61,600

5.16 %

Subordinated debentures, net of issuance costs

114,102

4.28 %

Junior subordinated debentures

129,509

7.50 %

      Total borrowed funds *

$                        848,198

5.48 %

*

As of September 30, 2023, the Company had $3.1 billion of additional borrowing capacity available with the FHLB of Pittsburgh, including a $250.0 million overnight line of credit, which had a $119.0 million drawn balance, as well as $302.0 million of borrowing capacity available with the Federal Reserve Bank and $105.0 million with two correspondent banks.

Northwest Bancshares, Inc. and Subsidiaries
Analysis of Loan Portfolio by Loan Sector (Unaudited)

Commercial real estate loans outstanding

The following table provides the various loan sectors in our commercial real estate portfolio at September 30, 2023:

September 30, 2023

Property type

Percent of portfolio

5 or more unit dwelling

14.3 %

Nursing home

12.8

Retail building

11.7

Commercial office building - non-owner occupied

8.4

Residential acquisition & development - 1-4 family, townhouses and apartments

5.0

Warehouse/storage building

4.0

Manufacturing & industrial building

3.4

Commercial acquisition and development

3.4

Commercial office building - owner occupied

3.3

Multi-use building - office and warehouse

3.3

Hotel/motel

2.9

Single family dwelling

2.8

Other medical facility

2.7

Student housing

2.6

Multi-use building - commercial, retail and residential

2.6

2-4 family

2.3

Agricultural real estate

2.1

All other

12.4

   Total

100.0 %

The following table describes our commercial real estate portfolio by state at September 30, 2023:

September 30, 2023

State

Percent of portfolio

Pennsylvania

31.9 %

New York

31.7

Ohio

20.4

Indiana

8.5

All other

7.5

   Total

100.0 %

Northwest Bancshares, Inc. and Subsidiaries
Asset Quality (Unaudited)
(dollars in thousands)

September 30,
2023

June 30,
2023

March 31,
2023

December 31,
2022

September 30,
2022

Nonaccrual loans current:

Residential mortgage loans

$           1,951

1,559

1,423

1,496

2,186

Home equity loans

947

1,089

1,084

1,418

1,158

Consumer loans

1,049

1,009

911

836

833

Commercial real estate loans

44,639

48,468

50,045

53,303

56,193

Commercial loans

1,369

995

1,468

895

1,801

Total nonaccrual loans current

$         49,955

53,120

54,931

57,948

62,171

Nonaccrual loans delinquent 30 days to 59 days:

Residential mortgage loans

$               48

49

688

473

54

Home equity loans

92

37

18

180

316

Consumer loans

274

309

223

178

155

Commercial real estate loans

1,913

1,697

1,900

1,220

55

Commercial loans

90

855

341

145

237

Total nonaccrual loans delinquent 30 days to 59 days

$           2,417