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Northwest Bancshares, Inc. Announces Second Quarter 2017 Earnings and Quarterly Dividend

Montag, 24.07.2017 17:50 von PR Newswire

PR Newswire

WARREN, Pa., July 24, 2017 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended June 30, 2017 of $31.0 million, or $0.30 per diluted share. This represents an increase of $38.0 million compared to the same quarter last year when the Company reported a net loss of $7.0 million or $0.07 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended June 30, 2017 were 10.48% and 1.30% compared to (2.44)% and (0.32)% for the same quarter last year. 

Northwest Bank

The current quarter's earnings were significantly augmented by the sale of the Company's three Maryland offices at a profit of $17.2 million, or $10.3 million after tax, while earnings for the same quarter in the previous year were negatively impacted by a penalty of $37.0 million, or $22.2 million after tax, relating to the prepayment of $700.0 million of long-term, fixed-rate Federal Home Loan Bank ("FHLB") borrowings. For more information, see "Reconciliation of Non-GAAP to GAAP Net Income" within this press release.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.16 per share payable on August 17, 2017 to shareholders of record as of August 3, 2017. This is the 91st consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's stock as of June 30, 2017, this dividend represents an annualized yield of approximately 4.1%.

In making this announcement, William J. Wagner, President and CEO, noted, "Excluding the aforementioned profit on the sale of the Maryland offices and costs associated with the closure of our consumer finance business, adjusted non-GAAP earnings for the quarter were $22.3 million, or $0.22 per share, a significant improvement over the first quarter of 2017. With the sale of the Maryland offices and closure of the consumer finance business now completed, our efforts will be focused on the lines of business and markets that are scalable, efficient, and offer meaningful opportunities for growth and earnings enhancement."

Net interest income increased by $7.2 million, or 9.5%, to $82.7 million for the quarter ended June 30, 2017, from $75.5 million for the quarter ended June 30, 2016. This increase is due primarily to a $3.2 million, or 3.9%, increase in interest income on loans receivable as a result of a $396.9 million, or 5.5%, increase in average loans receivable from the prior year period. Also contributing to the increase in net interest income is a $2.9 million, or 70.1%, decrease in interest expense on borrowed funds as a result of the prepayment of $700.0 million of long-term FHLB borrowings in the second quarter of 2016.

The provision for loan losses increased by $1.4 million, or 32.5%, to $5.6 million for the quarter ended June 30, 2017, from $4.2 million for the quarter ended June 30, 2016. This increase relates to the growth in the indirect automobile and commercial business loan portfolios as well as for the closure of the Company's consumer finance subsidiary. Overall credit quality improved slightly with nonaccrual loans decreasing to $72.8 million, or 0.95% of total loans, at June 30, 2017 from $75.9 million, or 1.04% of total loans, at June 30, 2016 and total loan delinquency decreasing to $82.5 million, or 1.07% of total loans outstanding, at June 30, 2017 from $83.8 million, or 1.15% of total loans outstanding, at June 30, 2016.

Excluding the $17.2 million profit received on the sale of the Maryland offices, noninterest income increased by $4.0 million, or 19.8%, to $24.3 million for the quarter ended June 30, 2017, from $20.3 million for the quarter ended June 30, 2016. Contributing to this increase was an increase in service charges and fees of $2.1 million, or 19.9%, which is attributable to the growth in checking accounts. Additionally, trust and other financial services income increased by $1.3 million, or 40.4%, due primarily to growth in assets under management.

Excluding the $37.0 million penalty incurred in the prior year period due to the prepayment of long-term FHLB borrowings, noninterest expense increased by $8.1 million, or 12.5%, for the quarter ended June 30, 2017. This increase, comprised primarily of increases in compensation and employee benefits of $4.5 million, or 13.4%, premises and occupancy costs of $828,000, or 13.2%, office operations of $827,000, or 24.7%, and amortization of intangible assets of $1.0 million, or 146.3%, relates primarily to the acquisition of 18 bank offices and related personnel in September 2016.

Net income for the six-month period ended June 30, 2017 was $48.7 million, or $0.48 per diluted share. This represents an increase of $37.7 million, or 344.0%, compared to the six-month period ended June 30, 2016, when net income was $11.0 million, or $0.11 per diluted share. The annualized returns on average shareholders' equity and average assets for the six-month period ended June 30, 2017 were 8.34% and 1.03% compared to 1.90% and 0.25% for the same period last year. In addition to the aforementioned items impacting the quarter, net interest income for the six-month period ended June 30, 2017 increased by $16.2 million, or 11.0%, due primarily to the loans received with the office acquisition previously discussed.

As announced in April, the Company closed the remaining 43 offices of its consumer finance subsidiary, Northwest Consumer Discount Company ("NCDC"), on July 14, 2017. All loans were transferred to Northwest Bank which will continue to operate NCDC's indirect sales finance program.

Also, in a continued effort to exit less efficient lines of business, Northwest Bank recently entered into a definitive agreement to sell its retirement services subsidiary, Boetger and Associates, Inc. ("Boetger"), to Boetger's current managing director. Both the annual revenue and annual expense generated by this line of business are approximately $2.5 million. It is anticipated that this transaction will close in the fourth quarter of 2017 and that Boetger will continue to administer Northwest Bank's retirement plans.

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 164 full-service community banking offices and nine 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)








June 30,
 2017


December 31,
 2016


June 30,
 2016

Assets






Cash and cash equivalents

$

111,772



119,403



87,711


Interest-earning deposits in other financial institutions

44,355



266,902



223,084


Federal funds sold and other short-term investments

640



3,562



636


Marketable securities available-for-sale (amortized cost of $949,161, $825,552 and $692,403, respectively)

952,802



826,200



705,297


Marketable securities held-to-maturity (fair value of $36,560, $20,426 and $25,978, respectively)

36,206



19,978



25,144


Total cash, interest-earning deposits and marketable securities

1,145,775



1,236,045



1,041,872








Residential mortgage loans held for sale

10,297



9,625



39,942


Residential mortgage loans

2,740,174



2,705,139



2,717,656


Home equity loans

1,301,032



1,328,772



1,162,174


Consumer loans

658,125



642,961



546,550


Commercial real estate loans

2,396,663



2,342,089



2,363,376


Commercial loans

580,446



528,761



465,223


Total loans receivable

7,686,737



7,557,347



7,294,921


Allowance for loan losses

(62,885)



(60,939)



(60,781)


Loans receivable, net

7,623,852



7,496,408



7,234,140








Assets held-for-sale



152,528




Federal Home Loan Bank stock, at cost

8,142



7,390



40,321


Accrued interest receivable

21,667



21,699



20,713


Real estate owned, net

6,030



4,889



4,950


Premises and Equipment, net

154,785



161,185



151,643


Bank owned life insurance

172,023



171,449



169,616


Goodwill

307,420



307,420



262,140


Other intangible assets

28,935



32,433



8,095


Other assets

30,381



32,194



30,485


Total assets

$

9,499,010



9,623,640



8,963,975








Liabilities and Shareholders' equity






Liabilities






Noninterest-bearing demand deposits

$

1,577,562



1,448,972



1,189,032


Interest-bearing demand deposits

1,440,196



1,428,317



1,110,607


Money market deposit accounts

1,800,261



1,841,567



1,295,127


Savings deposits

1,685,282



1,622,879



1,444,947


Time deposits

1,467,946



1,540,586



1,596,288


Total deposits

7,971,247



7,882,321



6,636,001








Liabilities held-for-sale



215,657




Borrowed funds

110,441



142,899



959,969


Advances by borrowers for taxes and insurance

48,446



36,879



45,288


Accrued interest payable

530



635



737


Other liabilities

60,203



63,373



55,312


Junior subordinated debentures

111,213



111,213



111,213


Total liabilities

8,302,080



8,452,977



7,808,520








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, 102,478,146 shares, 101,699,406 shares and 102,472,947 issued and outstanding, respectively

1,025



1,017



1,025


Paid-in-capital

726,036



718,834



722,980


Retained earnings

495,017



478,803



470,337


Unallocated common stock of Employee Stock Ownership Plan





(19,370)


Accumulated other comprehensive loss

(25,148)



(27,991)



(19,517)


Total shareholders' equity

1,196,930



1,170,663



1,155,455


Total liabilities and shareholders' equity

$

9,499,010



9,623,640



8,963,975








Equity to assets

12.60

%


12.16

%


12.89

%

Tangible common equity to assets

9.39

%


8.95

%


10.18

%

Book value per share

$

11.68



11.51



11.28


Tangible book value per share

$

8.40



8.17



8.64


Closing market price per share

$

15.61



18.03



14.83


Full time equivalent employees

2,273



2,306



2,091


Number of banking offices

173



176



157


 

 


Northwest Bancshares, Inc. and Subsidiaries



Consolidated Statements of Income (Unaudited)



(Dollars in thousands, except per share amounts)






Quarter Ended



June 30,
 2017


March 31,
 2017


December 31,
 2016


September 30,
 2016


June 30,
 2016



Interest income:











Loans receivable

$

84,714



82,751



85,669



81,083



81,506



Mortgage-backed securities

2,987



2,222



2,166



2,030



2,115



Taxable investment securities

981



1,006



988



627



756



Tax-free investment securities

529



569



625



676



707



FHLB dividends

50



59



285



218



401



Interest-earning deposits

536



660



300



114



70



Total interest income

89,797



87,267



90,033



84,748



85,555














Interest expense:











Deposits

5,826



5,465



5,859



5,653



5,865



Borrowed funds

1,240



1,225



1,232



1,801



4,143



Total interest expense

7,066



6,690



7,091



7,454



10,008














Net interest income

82,731



80,577



82,942



77,294



75,547



Provision for loan losses

5,562



4,637



2,145



5,538



4,199



Net interest income after provision for loan losses

77,169



75,940



80,797



71,756



71,348














Noninterest income:











Gain on sale of investments

3



17



213



58



227



Service charges and fees

12,749



11,717



12,406



11,012



10,630



Trust and other financial services income

4,600



4,304



4,131



3,434



3,277



Insurance commission income

2,353



2,794



2,499



2,541



2,768



Gain/ (loss) on real estate owned, net

(230)



(67)



164



(563)



111



Income from bank owned life insurance

1,652



1,068



1,281



1,380



1,105



Mortgage banking income

434



240



2,344



1,886



446



Gain on sale of offices

17,186











Other operating income

2,730



1,431



1,781



1,070



1,711



Total noninterest income

41,477



21,504



24,819



20,818



20,275














Noninterest expense:











Compensation and employee benefits

37,658



37,755



36,562



38,122



33,210



Premises and occupancy costs

7,103



7,516



7,228



6,094



6,275



Office operations

4,170



4,222



4,395



3,700



3,343



Collections expense

553



549



437



589



729



Processing expenses

9,639



9,909



9,429



8,844



8,172



Marketing expenses

2,846



2,148



2,181



2,239



2,541



Federal deposit insurance premiums

856



1,167



475



984



1,442



Professional services

2,452



2,575



2,088



1,815



2,129



Amortization of intangible assets

1,749



1,749



1,806



1,068



710



Real estate owned expense

217



282



192



206



295



Restructuring/ acquisition expense

2,634



223



1,009



7,183



3,386



FHLB prepayment penalty









36,978



Other expense

3,385



3,551



2,959



2,836



2,912



Total noninterest expense

73,262



71,646



68,761



73,680



102,122



Income/ (loss) before income taxes

45,384



25,798



36,855



18,894



(10,499)














Income tax expense/ (benefit)

14,402



8,052



12,361



4,697



(3,491)



Net income/ (loss)

$

30,982



17,746



24,494



14,197



(7,008)














Basic earnings/ (loss) per share

$

0.31



0.18



0.24



0.14



(0.07)



Diluted earnings/ (loss) per share

$

0.30



0.17



0.24



0.14



(0.07)














Weighted average common shares outstanding - basic

100,950,772



100,653,277



100,219,370



99,602,535



99,177,609



Weighted average common shares outstanding - diluted

102,449,693



102,480,549



100,089,892



101,068,245



100,243,442














Annualized return on average equity

10.48

%


6.15

%


8.37

%


4.89

%


(2.44)%



Annualized return on average assets

1.30

%


0.75

%


1.01

%


0.63

%


(0.32)%



Annualized return on tangible common equity

14.44

%


8.57

%


11.73

%


6.88

%


(3.18)%














Efficiency ratio *

64.36

%


68.25

%


61.20

%


66.69

%


63.71

%


Annualized noninterest expense to average assets *

2.89

%


2.94

%


2.73

%


2.88

%


2.76

%


 * Excludes gain on sale of offices and restructuring/acquisition expenses, FHLB prepayment penalty, and amortization of intangible assets (non-GAAP).


 

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share amounts)




Six Months Ended


2017


2016

Interest income:




Loans receivable

$

167,465



162,287


Mortgage-backed securities

5,209



4,344


Taxable investment securities

1,987



1,794


Tax-free investment securities

1,098



1,431


FHLB dividends

109



868


Interest-earning deposits

1,196



129


Total interest income

177,064



170,853






Interest expense:




Deposits

11,291



11,953


Borrowed funds

2,465



11,801


Total interest expense

13,756



23,754






Net interest income

163,308



147,099


Provision for loan losses

10,199



5,859


Net interest income after provision for loan losses

153,109



141,240






Noninterest income:




Gain on sale of investments

20



354


Service charges and fees

24,466



20,695


Trust and other financial services income

8,904



6,538


Insurance commission income

5,147



5,482


Gain/(loss) on real estate owned, net

(297)



360


Income from bank owned life insurance

2,720



2,700


Mortgage banking income

674



664


Gain on sale of offices

17,186




Other operating income

4,161



2,930


Total noninterest income

62,981



39,723






Noninterest expense:




Compensation and employee benefits

75,413



66,243


Premises and occupancy costs

14,619



12,812


Office operations

8,392



6,803


Collections expense

1,102



1,405


Processing expenses

19,548



16,586


Marketing expenses

4,994



4,432


Federal deposit insurance premiums

2,023



2,945


Professional services

5,027



3,962


Amortization of intangible assets

3,498



1,385


Real estate owned expense

499



606


Restructuring/ acquisition expense

2,857



4,021


FHLB prepayment penalty



36,978


Other expense

6,936



7,219


Total noninterest expense

144,908



165,397


Income before income taxes

71,182



15,566






Income tax expense

22,454



4,590


Net income

$

48,728



10,976






Basic earnings per share

$

0.48



0.11


Diluted earnings per share

$

0.48



0.11






Weighted average common shares outstanding - basic

100,798,209


99,033,676

Weighted average common shares outstanding - diluted

102,525,058


99,811,725





Annualized return on average equity

8.34

%


1.90

%

Annualized return on average assets

1.03

%


0.25

%

Annualized return on tangible common equity

11.42

%


2.49

%





Efficiency ratio *

66.26

%


65.85

%

Annualized noninterest expense to average assets *

2.92

%


2.81

%

* Excludes gain on sale of offices and restructuring/acquisition expenses, FHLB prepayment penalty, and amortization of intangible assets (non-GAAP).


 

 

Northwest Bancshares, Inc. and Subsidiaries

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

(Dollars in thousands, except per share amounts)






Quarter Ended

June 30,


Six Months Ended
June 30,


2017


2016


2017


2016

Operating results (non-GAAP):








Net interest income

$

82,731



75,547



163,308



147,099


Provision for loan losses

5,562



4,199



10,199



5,859


Noninterest income

24,291



20,275



45,795



39,723


Noninterest expense

70,628



61,758



142,051



124,398


Income taxes

8,581



12,655



16,722



20,990


Net operating income (non-GAAP)

$

22,251



17,210



40,131



35,575


Diluted earnings per share (non-GAAP)

$

0.22



0.17



0.39



0.36










Average equity

$

1,185,357



1,154,885



1,177,631



1,159,450


Average assets

9,551,905



8,882,058



9,580,209



8,896,530


Annualized ROE (non-GAAP)

7.53

%


5.99

%


6.87

%


6.17

%

Annualized ROA (non-GAAP)

0.93

%


0.78

%


0.84

%


0.80

%









Reconciliation of net operating income to net income:








Net operating income (non-GAAP)

$

22,251



17,210



40,131



35,575


Nonoperating income/ expenses, net of tax:








Gain on sale of offices

10,311





10,311




Restructuring/ acquisition expenses

(1,580)



(2,032)



(1,714)



(2,413)


FHLB prepayment penalty



(22,186)





(22,186)


Net income/ (loss) (GAAP)

$

30,982



(7,008)



48,728



10,976


Diluted earnings per share (GAAP)

$

0.30



(0.07)



0.48



0.11










Annualized ROE (GAAP)

10.48

%


(2.44)%



8.34

%


1.90

%

Annualized ROA (GAAP)

1.30

%


(0.32)%



1.03

%


0.25

%

* 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 certain income and expenses net of tax benefit and cost. The net tax effect was calculated using statutory tax rates of approximately 40.0%. 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

Asset quality (Unaudited)

(Dollars in thousands)












June 30,
 2017


March 31,
 2017


December 31,
 2016


September 30,
 2016


June 30,
 2016

Nonaccrual loans current:










Residential mortgage loans

$

841



1,864



2,109



3,063



2,017


Home equity loans

158



1,244



1,451



1,446



1,092


Consumer loans

379



633



520



464



277


Commercial real estate loans

16,189



13,347



13,955



19,246



17,456


Commercial loans

5,262



5,335



5,361



7,299



4,462


Total nonaccrual loans current

$

22,829



22,423



23,396



31,518



25,304












Nonaccrual loans delinquent 30 days to 59 days:










Residential mortgage loans

$

181



1,001



1,464



344




Home equity loans

164



328



422



315



49


Consumer loans

169



218



400



211



95


Commercial real estate loans

474



1,970



3,478



514



151


Commercial loans

32



328



145



185



16


Total nonaccrual loans delinquent 30 days to 59 days

$

1,020



3,845



5,909



1,569



311












Nonaccrual loans delinquent 60 days to 89 days:










Residential mortgage loans

$

896



704



1,522



1,270



1,524


Home equity loans

326



408



440



465



366


Consumer loans

342



242



366



250



157


Commercial real estate loans

2,233



540



2,027



151



6,513


Commercial loans



23



695



319



1,748


Total nonaccrual loans delinquent 60 days to 89 days

$

3,797



1,917



5,050



2,455



10,308












Nonaccrual loans delinquent 90 days or more:










Residential mortgage loans

$

11,637



11,911



13,169



13,242



14,829


Home equity loans

5,744



6,194



5,552



5,874



5,226


Consumer loans

2,809



3,359



3,823



3,354



2,374


Commercial real estate loans

21,295



20,897



19,264



22,155



12,960


Commercial loans

3,642



2,744



3,373



6,105



4,566


Total nonaccrual loans delinquent 90 days or more

$

45,127



45,105



45,181



50,730



39,955












Total nonaccrual loans

$

72,773



73,290



79,536



86,272



75,878












Total nonaccrual loans

$

72,773



73,290



79,536



86,272



75,878


Loans 90 days past maturity and still accruing

182



265



649



103



472


Nonperforming loans

72,955



73,555



80,185



86,375



76,350


Real estate owned, net

6,030



6,242



4,889



4,841



4,950


Nonperforming assets

$

78,985



79,797



85,074



91,216



81,300












Nonaccrual troubled debt restructuring *

$

17,873



18,273



16,346



17,374



18,098


Accruing troubled debt restructuring

23,987



25,305



26,580



29,221



31,015


Total troubled debt restructuring

$

41,860



43,578



42,926



46,595



49,113












Nonperforming loans to total loans

0.95

%


0.97

%


1.06

%


1.11

%


1.05

%

Nonperforming assets to total assets

0.83

%


0.82

%


0.88

%


0.94

%


0.91

%

Allowance for loan losses to total loans

0.82

%


0.81

%


0.81

%


0.81

%


0.83

%

Allowance for loan losses to nonperforming loans

86.20

%


83.07

%


76.00

%


73.22

%


79.61

%

* Amounts included in nonperforming loans above.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Loans by credit quality indicators (Unaudited)

(Dollars in thousands)














At June 30, 2017


Pass


Special

Mention *


Substandard **


Doubtful


Loss


Loans

Receivable

Personal Banking:













Residential mortgage loans


$

2,733,555





16,916







2,750,471


Home equity loans


1,292,333





8,699







1,301,032


Consumer loans


655,149





2,976







658,125


Total Personal Banking


4,681,037





28,591







4,709,628


Commercial Banking:













Commercial real estate loans


2,178,996



67,826



149,841







2,396,663


Commercial loans


521,520



10,269



48,657







580,446


Total Commercial Banking


2,700,516



78,095



198,498







2,977,109


Total loans


$

7,381,553



78,095



227,089







7,686,737















At March 31, 2017













Personal Banking:













Residential mortgage loans


$

2,689,203





16,866







2,706,069


Home equity loans


1,296,182





9,212







1,305,394


Consumer loans


639,574





3,531







643,105


Total Personal Banking


4,624,959





29,609







4,654,568


Commercial Banking:













Commercial real estate loans


2,187,545



48,189



142,740







2,378,474


Commercial loans


474,662



12,226



43,158







530,046


Total Commercial Banking


2,662,207



60,415



185,898







2,908,520


Total loans


$

7,287,166



60,415



215,507







7,563,088















At December 31, 2016













Personal Banking:













Residential mortgage loans


$

2,696,705





18,059







2,714,764


Home equity loans


1,318,998





9,774







1,328,772


Consumer loans


639,044





3,917







642,961


Total Personal Banking


4,654,747





31,750







4,686,497


Commercial Banking:













Commercial real estate loans


2,153,328



43,724



145,037







2,342,089


Commercial loans


469,993



17,192



41,576







528,761


Total Commercial Banking


2,623,321



60,916



186,613







2,870,850


Total loans


$

7,278,068



60,916



218,363







7,557,347















At September 30, 2016













Personal Banking:













Residential mortgage loans


$

2,800,420





18,593







2,819,013


Home equity loans


1,338,643





10,462







1,349,105


Consumer loans


624,885





3,627







628,512


Total Personal Banking


4,763,948





32,682







4,796,630


Commercial Banking:













Commercial real estate loans


2,265,816



61,763



137,088



14





2,464,681


Commercial loans


479,321



14,707



40,326



2,901





537,255


Total Commercial Banking


2,745,137



76,470



177,414



2,915





3,001,936


Total loans


$

7,509,085



76,470



210,096



2,915





7,798,566















At June 30, 2016













Personal Banking:













Residential mortgage loans


$

2,741,101





16,497







2,757,598


Home equity loans


1,153,010





9,164







1,162,174


Consumer loans


544,174





2,376







546,550


Total Personal Banking


4,438,285





28,037







4,466,322


Commercial Banking:













Commercial real estate loans


2,170,583



63,351



129,428



14





2,363,376


Commercial loans


408,178



15,435



38,546



3,064





465,223


Total Commercial Banking


2,578,761



78,786



167,974



3,078





2,828,599


Total loans


$

7,017,046



78,786



196,011



3,078





7,294,921


* Includes $9.7 million $12.4 million, $9.4 million, $19.3 million, and $7.6 million of acquired loans at June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, and June 30, 2016, respectively.

** Includes $44.8 million, $45.3 million, $39.1 million, $29.8 million, and $25.5 million of acquired loans at June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, and June 30, 2016, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Loan delinquency (Unaudited)

(Dollars in thousands)
























June 30, 2017


*


March 31, 2017


*


December 31, 2016


*


September  30, 2016


*


June 30, 2016


*

(Number of loans and dollar amount of loans)































Loans delinquent 30 days to 59 days:































Residential mortgage loans


64



$

2,893



0.1

%


280



$

22,254



0.8

%


360



$

27,386



1.0

%


74



$

3,380



0.1

%


72



$

3,353



0.1

%

Home equity loans


111



4,058



0.3

%


125



4,586



0.4

%


179



6,805



0.5

%


164



4,984



0.4

%


128



4,988



0.4

%

Consumer loans


1,399



8,578



1.3

%


1,022



7,157



1.1

%


1,497



9,868



1.5

%


1,269



7,583



1.2

%


1,144



6,725



1.2

%

Commercial real estate loans


38



4,629



0.2

%


60



9,364



0.4

%


61



10,377



0.4

%


28



3,855



0.2

%


34



4,828



0.2

%

Commercial loans


20



1,378



0.2

%


29



2,304



0.4

%


20



1,178



0.2

%


26



1,493



0.3

%


15



533



0.1

%

Total loans delinquent 30 days to 59 days


1,632



$

21,536



0.3

%


1,516



$

45,665



0.6

%


2,117



$

55,614



0.7

%


1,561



$

21,295



0.3

%


1,393



$

20,427



0.3

%
































Loans delinquent 60 days to 89 days:































Residential mortgage loans


72



$

6,320



0.2

%


28



$

1,594



0.1

%


80



$

6,227



0.2

%


76



$

6,174



0.2

%


74



$

5,633



0.2

%

Home equity loans


44



1,522



0.1

%


36



1,145



0.1

%


62



1,563



0.1

%


41



1,145



0.1

%


42



1,435



0.1

%

Consumer loans


623



3,234



0.5

%


430



2,241



0.3

%


636



3,609



0.6

%


532



2,673



0.4

%


514



2,247



0.4

%

Commercial real estate loans


14



3,368



0.1

%


19



3,034



0.1

%


25



4,495



0.2

%


13



1,102



%


16



8,765



0.4

%

Commercial loans


9



199



%


10



499



0.1

%


21



2,081



0.4

%


9



594



0.1

%


23



2,429



0.5

%

Total loans delinquent 60 days to 89 days


762



$

14,643



0.2

%


523



$

8,513



0.1

%


824



$

17,975



0.2

%


671



$

11,688



0.1

%


669



$

20,509



0.3

%
































Loans delinquent 90 days or more: **































Residential mortgage loans


145



$

12,053



0.4

%


139



$

12,326



0.5

%


169



$

13,621



0.5

%


168



$

13,478



0.5

%


176



$

15,046



0.5

%

Home equity loans


126



5,800



0.4

%


143



6,258



0.5

%


155



5,756



0.4

%


137



6,022



0.4

%


124



5,422



0.5

%

Consumer loans


487



2,821



0.4

%


532



3,372



0.5

%


646



3,838



0.6

%


757



3,372



0.5

%


440



2,399



0.4

%

Commercial real estate loans


108



22,044



0.9

%


106



23,009



1.0

%


101



21,270



0.9

%


106



24,533



1.0

%


107



15,244



0.6

%

Commercial loans


39



3,642



0.6

%


39



2,744



0.5

%


37



3,520



0.7

%


28



6,249



1.2

%


32



4,709



1.0

%

Total loans delinquent 90 days or more


905



$

46,360



0.6

%


959



$

47,709



0.6

%


1,108



$

48,005



0.6

%


1,196



$

53,654



0.7

%


879



$

42,820



0.6

%
































Total loans delinquent


3,299



$

82,539



1.1

%


2,998



$

101,887



1.3

%


4,049



$

121,594



1.5

%


3,428



$

86,637



1.1

%


2,941



$

83,756



1.2

%

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

** Includes purchased credit impaired loans of $1.2 million, $2.6 million, $2.8 million, $2.9 million, and $2.9 million at June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, and June 30, 2016, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for loan losses (Unaudited)

(Dollars in thousands)




Quarter Ended


June 30,
 2017


March 31,
 2017


December 31,
 2016


September 30,
 2016


June 30,
 2016

Beginning balance

$

61,104



60,939



63,246



60,781



62,278


Provision

5,562



4,637



2,145



5,538



4,199


Charge-offs residential mortgage

(372)



(290)



(710)



(354)



(1,852)


Charge-offs home equity

(689)



(649)



(321)



(288)



(946)


Charge-offs consumer

(3,517)



(3,660)



(3,469)



(2,701)



(2,332)


Charge-offs commercial real estate

(329)



(474)



(323)



(789)



(1,731)


Charge-offs commercial

(929)



(1,267)



(2,489)



(708)



(903)


Recoveries

2,055



1,868



2,860



1,767



2,068


Ending balance

$

62,885



61,104



60,939



63,246



60,781












Net charge-offs to average loans, annualized

0.20

%


0.23

%


0.23

%


0.17

%


0.31

%

 

 


Six Months Ended June 30,


2017


2016

Beginning balance

$

60,939



62,672


Provision

10,199



5,859


Charge-offs residential mortgage

(662)



(2,416)


Charge-offs home equity

(1,338)



(1,930)


Charge-offs consumer

(7,177)



(4,735)


Charge-offs commercial real estate

(803)



(2,628)


Charge-offs commercial

(2,196)



(1,020)


Recoveries

3,923



4,979


Ending balance

$

62,885



60,781






Net charge-offs to average loans, annualized

0.22

%


0.21

%

 

 


 

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


June 30, 2017


March 31, 2017


December 31, 2016


September 30, 2016


June 30, 2016


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

$

2,721,445



28,245



4.15

%


$

2,718,904



27,309



4.02

%


$

2,766,693



28,165



4.07

%


$

2,739,099



27,952



4.08

%


$

2,751,601



29,089



4.23

%

Home equity loans

1,311,274



14,344



4.39

%


1,332,647



14,201



4.32

%


1,346,856



14,442



4.27

%


1,192,929



12,884



4.30

%


1,163,900



12,701



4.39

%

Consumer loans

636,115



9,515



6.00

%


627,288



9,701



6.27

%


620,294



10,083



6.47

%


554,954



8,931



6.40

%


522,745



8,697



6.69

%

Commercial real estate loans

2,430,594



27,071



4.41

%


2,456,070



26,562



4.33

%


2,467,569



27,863



4.42

%


2,394,001



26,683



4.36

%


2,356,994



26,691



4.48

%

Commercial loans

554,506



6,087



4.34

%


522,847



5,515



4.22

%


527,330



5,682



4.27

%


476,715



5,193



4.26

%


461,808



4,902



4.20

%

Total loans receivable (a) (b) (d)

7,653,934



85,262



4.47

%


7,657,756



83,288



4.41

%


7,728,742



86,235



4.44

%


7,357,698



81,643



4.41

%


7,257,048



82,080



4.55

%

Mortgage-backed securities (c)

592,917



2,987



2.02

%


471,674



2,222



1.88

%


482,707



2,166



1.79

%


440,966



2,030



1.84

%


458,398



2,115



1.85

%

Investment securities (c) (d)

372,398



1,796



1.93

%


377,819



1,881



1.99

%


401,602



1,950



1.94

%


275,718



1,667



2.42

%


313,647



1,844



2.35

%

FHLB stock

7,602



50



2.64

%


7,305



59



3.28

%


7,575



285



4.54

%


27,761



218



3.12

%


33,302



401



4.84

%

Other interest-earning deposits

208,141



536



1.02

%


294,391



660



0.90

%


325,889



300



0.36

%


91,243



114



0.49

%


63,950



70



0.43

%

Total interest-earning assets

8,834,992



90,631



4.11

%


8,808,945



88,110



4.06

%


8,946,515



90,936



4.04

%


8,193,386



85,672



4.16

%


8,126,345



86,510



4.28

%

Noninterest earning assets (e)

716,913







799,569







677,888







835,500







755,713






Total assets

$

9,551,905







$

9,608,514







$

9,624,403







$

9,028,886







$

8,882,058




































Liabilities and shareholders' equity:






























Interest-bearing liabilities:






























Savings deposits

$

1,714,290



768



0.18

%


$

1,702,528



755



0.18

%


$

1,668,492



771



0.18

%


$

1,485,763



744



0.20

%


$

1,440,886



837



0.23

%

Interest-bearing demand deposits

1,451,787



283



0.08

%


1,422,284



116



0.03

%


1,431,671



85



0.02

%


1,179,557



78



0.03

%


1,130,122



144



0.05

%

Money market deposit accounts

1,839,693



1,064



0.23

%


1,879,292



1,074



0.23

%


1,890,220



1,101



0.23

%


1,418,779



826



0.23

%


1,294,381



829



0.26

%

Time deposits

1,518,650



3,711



0.98

%


1,573,574



3,520



0.91

%


1,643,785



3,902



0.94

%


1,597,542



4,005



1.00

%


1,616,260



4,055



1.01

%

Borrowed funds (f)

126,685



55



0.17

%


136,872



58



0.17

%


143,540



61



0.17

%


560,407



657



0.47

%


772,225



3,017



1.57

%

Junior subordinated debentures

111,213



1,185



4.22

%


111,213



1,167



4.20

%


111,213



1,171



4.12

%


111,213



1,144



4.03

%


111,213



1,126



4.01

%

Total interest-bearing liabilities

6,762,318



7,066



0.42

%


6,825,763



6,690



0.40

%


6,888,921



7,091



0.41

%


6,353,261



7,454



0.47

%


6,365,087



10,008



0.63

%

Noninterest-bearing demand deposits (g)

1,544,953







1,506,268







1,493,528







1,243,474







1,184,786






Noninterest bearing liabilities

59,277







106,578







77,827







276,014







177,300






Total liabilities

8,366,548







8,438,609







8,460,276







7,872,749







7,727,173






Shareholders' equity

1,185,357







1,169,905







1,164,127







1,156,137







1,154,885






Total liabilities and shareholders' equity

$

9,551,905







$

9,608,514







$

9,624,403







$

9,028,886







$

8,882,058






Net interest income/ Interest rate spread



83,565



3.69

%




81,420



3.66

%




83,845



3.63

%




78,218



3.69

%




76,502



3.65

%

Net interest-earning assets/ Net interest margin

$

2,072,674





3.78

%


$

1,983,182





3.75

%


$

2,057,594





3.75

%


$

1,840,125





3.82

%


$

1,761,258





3.77

%

Ratio of interest-earning assets to interest-bearing liabilities

1.31X







1.29X







1.30X







1.29X







1.28X






(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 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 0.29%, 0.27%, 0.29%, 0.32% and 0.35%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.44%, 4.38%, 4.41%, 4.38% and 4.52%, respectively, Investment securities - 1.62%, 1.67%, 1.61%, 1.89% and 1.87%, respectively, Interest-earning assets - 4.08%, 4.02%, 4.00%, 4.11% and 4.23%, respectively. GAAP basis net interest rate spreads were 3.66%, 3.62%, 3.59%, 3.65% and 3.60%, respectively, and GAAP basis net interest margins were 3.75%, 3.71%, 3.71%, 3.77% and 3.72%, respectively.



 

 

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.



Six Months Ended June 30,


2017


2016


Average

Balance


Interest


Avg.

Yield/

Cost (h)


Average

Balance


Interest


Avg.

Yield/

Cost (h)

Assets:












Interest-earning assets:












Residential mortgage loans

$

2,720,180



55,554



4.08

%


$

2,745,695



58,874



4.29

%

Home equity loans

1,321,902



28,545



4.35

%


1,170,653



25,243



4.34

%

Consumer loans

631,726



19,216



6.13

%


516,419



16,916



6.59

%

Commercial real estate loans

2,443,262



53,633



4.37

%


2,353,371



52,684



4.43

%

Commercial loans

538,760



11,602



4.28

%


451,893



9,625



4.21

%

Loans receivable (a) (b) (d)

7,655,830



168,550



4.44

%


7,238,031



163,342



4.54

%

Mortgage-backed securities (c)

532,631



5,209



1.96

%


473,346



4,344



1.84

%

Investment securities (c) (d)

375,093



3,677



1.96

%


350,553



3,995



2.28

%

FHLB stock

7,454



109



2.95

%


35,200



868



4.96

%

Other interest-earning deposits

257,427



1,196



0.92

%


45,926



129



0.56

%

Total interest-earning assets

8,828,435



178,741



4.08

%


8,143,056



172,678



4.26

%

Noninterest earning assets (e)

751,774







753,474






Total assets

$

9,580,209







$

8,896,530


















Liabilities and shareholders' equity:












Interest-bearing liabilities:












Savings deposits

$

1,708,441



1,524



0.18

%


$

1,423,343



1,702



0.24

%

Interest-bearing demand deposits

1,437,112



399



0.06

%


1,111,981



300



0.05

%

Money market deposit accounts

1,859,383



2,138



0.23

%


1,291,457



1,694



0.26

%

Time deposits

1,545,959



7,230



0.94

%


1,640,291



8,257



1.01

%

Borrowed funds (f)

131,750



112



0.17

%


835,832



9,556



2.30

%

Junior subordinated debentures

111,213



2,353



4.21

%


111,213



2,245



3.99

%

Total interest-bearing liabilities

6,793,858



13,756



0.41

%


6,414,117



23,754



0.74

%

Noninterest-bearing demand deposits (g)

1,525,723







1,109,662






Noninterest bearing liabilities

82,997







213,301






Total liabilities

8,402,578







7,737,080






Shareholders' equity

1,177,631







1,159,450






Total liabilities and shareholders' equity

$

9,580,209







$

8,896,530






Net interest income/ Interest rate spread



164,985



3.67

%




148,924



3.52

%

Net interest-earning assets/ Net interest margin

$

2,034,577





3.74

%


$

1,728,939





3.66

%

Ratio of interest-earning assets to interest-bearing liabilities

1.30X







1.27X






(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 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 0.28%, and 0.37%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.41% and 4.51%, respectively, Investment securities - 1.64% and 1.84%, respectively, Interest-earning assets - 4.04% and 4.22%, respectively. GAAP basis net interest rate spreads were 3.64% and 3.47%, respectively, and GAAP basis net interest margins were 3.70% and 3.61%, respectively.

 

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SOURCE Northwest Bancshares, Inc.