WARREN, Pa., Oct. 23, 2017 /PRNewswire/ -- Northwest
Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the
quarter ended September 30, 2017 of $23.6 million, or $0.23 per diluted share. This represents an
increase of $9.4 million, or 66.2%,
compared to the same quarter last year when net income was
$14.2 million or $0.14 per diluted share. The annualized returns
on average shareholders' equity and average assets for the quarter
ended September 30, 2017 were 7.81% and 0.99% compared to
4.89% and 0.63% for the same quarter last year.
![Northwest Bank Northwest Bank](https://mma.prnewswire.com/media/588330/Northwest_Bank_Logo.jpg)
Net income in the prior year period was negatively impacted by
an additional $4.3 million, after
tax, of restructuring costs associated with the acquisition of 18
offices in western New York, as
well as $3.1 million, after tax, of
expenses related to the termination of the Northwest Bank Employee
Stock Ownership Plan ("ESOP"). Adjusting both quarters for non-core
items, net income for the quarter ended September 30, 2017 was $24.4 million, or $0.24 per diluted share, an increase of
$2.8 million, or 13.2%, compared to
net income of $21.6 million, or
$0.21 per diluted share in the
previous year. 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 November 16,
2017 to shareholders of record as of November 2, 2017. This is the 92nd
consecutive quarter in which the Company has paid a cash dividend.
Based on the market value of the Company's stock as of
September 30, 2017, this dividend represents an annualized
yield of approximately 3.7%.
In making this announcement, William J.
Wagner, President and CEO, noted, "We are pleased to report
normalized earnings this quarter following a two year period during
which earnings were impacted by significant restructuring activity.
This restructuring included the acquisition of LNB Bancorp, Inc. in
August 2015, the consolidation of 24
offices in April 2016, the
acquisition of 18 offices in the western New York market in September 2016, the sale of our Maryland region in May
2017 and finally the closure of Northwest Consumer Discount
Company in July 2017. These
restructuring initiatives have greatly streamline our operation,
resulting in a product and service set that enhances Northwest's
ability to successfully compete within our chosen markets as a
mid-sized community bank. With that, we were encouraged to see that
our efficiency ratio decreased to 60.9% in the current quarter
compared to 69.1% in the quarter which last preceded the
restructuring initiatives."
Net interest income increased by $5.9
million, or 7.7%, to $83.2
million for the quarter ended September 30, 2017, from
$77.3 million for the quarter ended
September 30, 2016. This increase is due primarily to a
$4.3 million, or 5.3%, increase in
interest income on loans receivable as a result of a $308.7 million, or 4.2%, increase in average
loans receivable from the prior year period. Also contributing to
the increase in net interest income was a $1.2 million, or 36.5%, increase in interest
income on investment securities as a result of redirecting excess
cash to higher yielding assets.
Despite higher provisions being required for consumer loans in
the current quarter, which were directly related to the closure of
the Company's consumer finance subsidiary, the provision for loan
losses decreased by $2.5 million, or
45.3%, to $3.0 million for the
quarter ended September 30, 2017, from $5.5 million for the quarter ended
September 30, 2016. Nonaccrual loans decreased to $73.3 million, or 0.9% of total loans, at
September 30, 2017 from $86.3
million, or 1.1% of total loans, at September 30,
2016.
Noninterest income increased by $3.8
million, or 18.1%, to $24.6
million for the quarter ended September 30, 2017, from
$20.8 million for the quarter ended
September 30, 2016. Contributing to this increase were
increases in service charges and fees of $1.7 million, or 15.5%, which is attributable to
the growth in checking accounts, and trust and other financial
services income of $1.4 million, or
39.6%, due primarily to growth in assets under management.
Noninterest expense decreased by $4.9
million, or 6.6%, to $68.8
million for the quarter ended September 30, 2017, from
$73.7 million for the quarter ended
September 30, 2016. This decrease is comprised primarily of
decreases in restructuring and acquisition expense of $5.8 million, or 80.5%, due to the September 2016 acquisition of 18 offices, and in
compensation and employee benefits of $2.1
million, or 5.5%, due to the closure of the Company's
consumer finance subsidiary in the current quarter, as well as
$5.1 million of expense recorded in
the prior year related to termination of the ESOP. Partially
offsetting these improvements were increases in premises and
occupancy costs of $857,000,
processing expenses of $806,000, and
amortization of intangible assets of $623,000, due primarily to the previously
mentioned acquisition of offices.
Net income for the nine-month period ended September 30, 2017 was $72.3 million, or $0.71 per diluted share. This represents an
increase of $47.1 million, or 187.3%,
compared to the nine-month period ended September 30, 2016, when net income was
$25.2 million, or $0.25 per diluted share. The annualized returns
on average shareholders' equity and average assets for the
nine-month period ended September 30,
2017 were 8.16% and 1.01% compared to 2.90% and 0.38% for
the same period last year. In addition to the aforementioned items
impacting the quarter, net income for the nine-month period ended
September 30, 2017 was significantly
enhanced by the second quarter sale of the Company's three
Maryland offices at a profit of
$17.2 million and an increase in net
interest income of $22.2 million, or
9.9%, due primarily to the loans received with the acquisition
previously discussed. Additionally, earnings for the nine-month
period ended September 30, 2016 were
negatively impacted by a penalty of $37.0
million relating to the prepayment of $700.0 million of long-term, fixed-rate Federal
Home Loan Bank borrowings and the $5.1
million cost associated with the termination of Northwest
Bank's ESOP.
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 bank 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.bank.
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)
|
|
|
September 30,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
104,372
|
|
|
119,403
|
|
|
107,604
|
|
Interest-earning
deposits in other financial institutions
|
60,662
|
|
|
266,902
|
|
|
210,723
|
|
Federal funds sold
and other short-term investments
|
642
|
|
|
3,562
|
|
|
2,239
|
|
Marketable securities
available-for-sale (amortized cost of $867,311, $825,552 and
$879,141, respectively)
|
869,481
|
|
|
826,200
|
|
|
890,688
|
|
Marketable securities
held-to-maturity (fair value of $32,282, $20,426 and $23,249,
respectively)
|
31,961
|
|
|
19,978
|
|
|
22,584
|
|
Total cash,
interest-earning deposits and marketable securities
|
1,067,118
|
|
|
1,236,045
|
|
|
1,233,838
|
|
|
|
|
|
|
|
Residential mortgage
loans held for sale
|
1,382
|
|
|
9,625
|
|
|
30,355
|
|
Residential mortgage
loans
|
2,741,844
|
|
|
2,688,541
|
|
|
2,771,576
|
|
Home equity
loans
|
1,313,435
|
|
|
1,345,370
|
|
|
1,366,187
|
|
Consumer
loans
|
673,920
|
|
|
642,961
|
|
|
628,512
|
|
Commercial real
estate loans
|
2,398,886
|
|
|
2,342,089
|
|
|
2,464,681
|
|
Commercial
loans
|
596,671
|
|
|
528,761
|
|
|
537,255
|
|
Total loans
receivable
|
7,726,138
|
|
|
7,557,347
|
|
|
7,798,566
|
|
Allowance for loan
losses
|
(56,927)
|
|
|
(60,939)
|
|
|
(63,246)
|
|
Loans receivable,
net
|
7,669,211
|
|
|
7,496,408
|
|
|
7,735,320
|
|
|
|
|
|
|
|
Assets
held-for-sale
|
—
|
|
|
152,528
|
|
|
—
|
|
Federal Home Loan
Bank stock, at cost
|
7,984
|
|
|
7,390
|
|
|
7,660
|
|
Accrued interest
receivable
|
22,802
|
|
|
21,699
|
|
|
21,591
|
|
Real estate owned,
net
|
5,462
|
|
|
4,889
|
|
|
4,841
|
|
Premises and
Equipment, net
|
152,761
|
|
|
161,185
|
|
|
167,596
|
|
Bank owned life
insurance
|
173,096
|
|
|
171,449
|
|
|
170,172
|
|
Goodwill
|
307,420
|
|
|
307,420
|
|
|
307,711
|
|
Other intangible
assets
|
27,244
|
|
|
32,433
|
|
|
33,901
|
|
Other
assets
|
26,716
|
|
|
32,194
|
|
|
31,977
|
|
Total
assets
|
$
|
9,459,814
|
|
|
9,623,640
|
|
|
9,714,607
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$
|
1,625,189
|
|
|
1,448,972
|
|
|
1,496,574
|
|
Interest-bearing
demand deposits
|
1,451,818
|
|
|
1,428,317
|
|
|
1,446,971
|
|
Money market deposit
accounts
|
1,759,395
|
|
|
1,841,567
|
|
|
1,896,272
|
|
Savings
deposits
|
1,669,782
|
|
|
1,622,879
|
|
|
1,671,539
|
|
Time
deposits
|
1,435,861
|
|
|
1,540,586
|
|
|
1,691,447
|
|
Total
deposits
|
7,942,045
|
|
|
7,882,321
|
|
|
8,202,803
|
|
|
|
|
|
|
|
Liabilities
held-for-sale
|
—
|
|
|
215,657
|
|
|
—
|
|
Borrowed
funds
|
115,388
|
|
|
142,899
|
|
|
135,891
|
|
Advances by borrowers
for taxes and insurance
|
21,864
|
|
|
36,879
|
|
|
21,616
|
|
Accrued interest
payable
|
518
|
|
|
635
|
|
|
682
|
|
Other
liabilities
|
62,939
|
|
|
63,373
|
|
|
79,599
|
|
Junior subordinated
debentures
|
111,213
|
|
|
111,213
|
|
|
111,213
|
|
Total
liabilities
|
8,253,967
|
|
|
8,452,977
|
|
|
8,551,804
|
|
|
|
|
|
|
|
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, 102,565,667 shares,
101,699,406 shares and 101,268,648 issued and outstanding,
respectively
|
1,026
|
|
|
1,017
|
|
|
1,013
|
|
Paid-in-capital
|
728,163
|
|
|
718,834
|
|
|
711,974
|
|
Retained
earnings
|
502,265
|
|
|
478,803
|
|
|
469,459
|
|
Accumulated other
comprehensive loss
|
(25,607)
|
|
|
(27,991)
|
|
|
(19,643)
|
|
Total shareholders'
equity
|
1,205,847
|
|
|
1,170,663
|
|
|
1,162,803
|
|
Total liabilities and
shareholders' equity
|
$
|
9,459,814
|
|
|
|
9,623,640
|
|
|
|
9,714,607
|
|
|
|
|
|
|
|
Equity to
assets
|
12.75
|
%
|
|
12.16
|
%
|
|
11.97
|
%
|
Tangible common
equity to assets
|
9.55
|
%
|
|
8.95
|
%
|
|
8.76
|
%
|
Book value per
share
|
$
|
11.76
|
|
|
11.51
|
|
|
11.48
|
|
Tangible book value
per share
|
$
|
8.49
|
|
|
8.17
|
|
|
8.11
|
|
Closing market price
per share
|
$
|
17.27
|
|
|
18.03
|
|
|
15.71
|
|
Full time equivalent
employees
|
2,137
|
|
|
2,306
|
|
|
2,268
|
|
Number of banking
offices
|
173
|
|
|
176
|
|
|
176
|
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
|
Consolidated
Statements of Income (Unaudited)
|
|
(Dollars in
thousands, except per share amounts)
|
|
|
|
Quarter ended
|
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable
|
$
|
85,373
|
|
|
84,714
|
|
|
82,751
|
|
|
85,669
|
|
|
81,083
|
|
|
Mortgage-backed
securities
|
3,118
|
|
|
2,987
|
|
|
2,222
|
|
|
2,166
|
|
|
2,030
|
|
|
Taxable investment
securities
|
957
|
|
|
981
|
|
|
1,006
|
|
|
988
|
|
|
627
|
|
|
Tax-free investment
securities
|
476
|
|
|
529
|
|
|
569
|
|
|
625
|
|
|
676
|
|
|
FHLB
dividends
|
63
|
|
|
50
|
|
|
59
|
|
|
285
|
|
|
218
|
|
|
Interest-earning
deposits
|
244
|
|
|
536
|
|
|
660
|
|
|
300
|
|
|
114
|
|
|
Total interest
income
|
90,231
|
|
|
89,797
|
|
|
87,267
|
|
|
90,033
|
|
|
84,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
5,795
|
|
|
5,826
|
|
|
5,465
|
|
|
5,859
|
|
|
5,653
|
|
|
Borrowed
funds
|
1,199
|
|
|
1,240
|
|
|
1,225
|
|
|
1,232
|
|
|
1,801
|
|
|
Total interest
expense
|
6,994
|
|
|
7,066
|
|
|
6,690
|
|
|
7,091
|
|
|
7,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
83,237
|
|
|
82,731
|
|
|
80,577
|
|
|
82,942
|
|
|
77,294
|
|
|
Provision for loan
losses
|
3,027
|
|
|
5,562
|
|
|
4,637
|
|
|
2,145
|
|
|
5,538
|
|
|
Net interest income
after provision for loan losses
|
80,210
|
|
|
77,169
|
|
|
75,940
|
|
|
80,797
|
|
|
71,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
investments
|
1,497
|
|
|
3
|
|
|
17
|
|
|
213
|
|
|
58
|
|
|
Service charges and
fees
|
12,724
|
|
|
12,749
|
|
|
11,717
|
|
|
12,406
|
|
|
11,012
|
|
|
Trust and other
financial services income
|
4,793
|
|
|
4,600
|
|
|
4,304
|
|
|
4,131
|
|
|
3,434
|
|
|
Insurance commission
income
|
1,992
|
|
|
2,353
|
|
|
2,794
|
|
|
2,499
|
|
|
2,541
|
|
|
Gain/ (loss) on real
estate owned, net
|
(193)
|
|
|
(230)
|
|
|
(67)
|
|
|
164
|
|
|
(563)
|
|
|
Income from bank
owned life insurance
|
1,078
|
|
|
1,652
|
|
|
1,068
|
|
|
1,281
|
|
|
1,380
|
|
|
Mortgage banking
income
|
519
|
|
|
434
|
|
|
240
|
|
|
2,344
|
|
|
1,886
|
|
|
Gain on sale of
offices
|
—
|
|
|
17,186
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other operating
income
|
2,184
|
|
|
2,730
|
|
|
1,431
|
|
|
1,781
|
|
|
1,070
|
|
|
Total noninterest
income
|
24,594
|
|
|
41,477
|
|
|
21,504
|
|
|
24,819
|
|
|
20,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
36,039
|
|
|
37,658
|
|
|
37,755
|
|
|
36,562
|
|
|
38,122
|
|
|
Premises and
occupancy costs
|
6,951
|
|
|
7,103
|
|
|
7,516
|
|
|
7,228
|
|
|
6,094
|
|
|
Office
operations
|
3,939
|
|
|
4,170
|
|
|
4,222
|
|
|
4,395
|
|
|
3,700
|
|
|
Collections
expense
|
568
|
|
|
553
|
|
|
549
|
|
|
437
|
|
|
589
|
|
|
Processing
expenses
|
9,650
|
|
|
9,639
|
|
|
9,909
|
|
|
9,429
|
|
|
8,844
|
|
|
Marketing
expenses
|
2,488
|
|
|
2,846
|
|
|
2,148
|
|
|
2,181
|
|
|
2,239
|
|
|
Federal deposit
insurance premiums
|
771
|
|
|
856
|
|
|
1,167
|
|
|
475
|
|
|
984
|
|
|
Professional
services
|
2,321
|
|
|
2,452
|
|
|
2,575
|
|
|
2,088
|
|
|
1,815
|
|
|
Amortization of
intangible assets
|
1,691
|
|
|
1,749
|
|
|
1,749
|
|
|
1,806
|
|
|
1,068
|
|
|
Real estate owned
expense
|
310
|
|
|
217
|
|
|
282
|
|
|
192
|
|
|
206
|
|
|
Restructuring/
acquisition expense
|
1,398
|
|
|
2,634
|
|
|
223
|
|
|
1,009
|
|
|
7,183
|
|
|
Other
expense
|
2,673
|
|
|
3,385
|
|
|
3,551
|
|
|
2,959
|
|
|
2,836
|
|
|
Total noninterest
expense
|
68,799
|
|
|
73,262
|
|
|
71,646
|
|
|
68,761
|
|
|
73,680
|
|
|
Income/ (loss) before
income taxes
|
36,005
|
|
|
45,384
|
|
|
25,798
|
|
|
36,855
|
|
|
18,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense/
(benefit)
|
12,414
|
|
|
14,402
|
|
|
8,052
|
|
|
12,361
|
|
|
4,697
|
|
|
Net income/
(loss)
|
$
|
23,591
|
|
|
30,982
|
|
|
17,746
|
|
|
24,494
|
|
|
14,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings/
(loss) per share
|
$
|
0.23
|
|
|
0.31
|
|
|
0.18
|
|
|
0.24
|
|
|
0.14
|
|
|
Diluted earnings/
(loss) per share
|
$
|
0.23
|
|
|
0.30
|
|
|
0.17
|
|
|
0.24
|
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
101,163,534
|
|
|
|
100,950,772
|
|
|
|
100,653,277
|
|
|
|
100,219,370
|
|
|
|
99,602,535
|
|
|
Weighted average
common shares outstanding - diluted
|
|
102,564,476
|
|
|
|
102,449,693
|
|
|
|
102,480,549
|
|
|
|
100,089,892
|
|
|
|
101,068,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average equity
|
7.81
|
%
|
|
10.48
|
%
|
|
6.15
|
%
|
|
8.37
|
%
|
|
4.89
|
%
|
|
Annualized return on
average assets
|
0.99
|
%
|
|
1.30
|
%
|
|
0.75
|
%
|
|
1.01
|
%
|
|
0.63
|
%
|
|
Annualized return on
tangible common equity
|
10.74
|
%
|
|
14.44
|
%
|
|
8.57
|
%
|
|
11.73
|
%
|
|
6.88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
*
|
60.94
|
%
|
|
64.36
|
%
|
|
68.25
|
%
|
|
61.20
|
%
|
|
66.69
|
%
|
|
Annualized
noninterest expense to average assets *
|
2.76
|
%
|
|
2.89
|
%
|
|
2.94
|
%
|
|
2.73
|
%
|
|
2.88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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)
|
|
|
Nine months ended
September 30,
|
|
2017
|
|
2016
|
Interest
income:
|
|
|
|
Loans
receivable
|
$
|
252,838
|
|
|
243,370
|
|
Mortgage-backed
securities
|
8,327
|
|
|
6,374
|
|
Taxable investment
securities
|
2,944
|
|
|
2,421
|
|
Tax-free investment
securities
|
1,574
|
|
|
2,107
|
|
FHLB
dividends
|
172
|
|
|
1,086
|
|
Interest-earning
deposits
|
1,440
|
|
|
243
|
|
Total interest
income
|
267,295
|
|
|
255,601
|
|
|
|
|
|
Interest
expense:
|
|
|
|
Deposits
|
17,086
|
|
|
17,606
|
|
Borrowed
funds
|
3,664
|
|
|
13,602
|
|
Total interest
expense
|
20,750
|
|
|
31,208
|
|
|
|
|
|
Net interest
income
|
246,545
|
|
|
224,393
|
|
Provision for loan
losses
|
13,226
|
|
|
11,397
|
|
Net interest income
after provision for loan losses
|
233,319
|
|
|
212,996
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
Gain on sale of
investments
|
1,517
|
|
|
412
|
|
Service charges and
fees
|
37,190
|
|
|
31,707
|
|
Trust and other
financial services income
|
13,697
|
|
|
9,972
|
|
Insurance commission
income
|
7,139
|
|
|
8,023
|
|
Gain/(loss) on real
estate owned, net
|
(490)
|
|
|
(203)
|
|
Income from bank
owned life insurance
|
3,798
|
|
|
4,080
|
|
Mortgage banking
income
|
1,193
|
|
|
2,550
|
|
Gain on sale of
offices
|
17,186
|
|
|
—
|
|
Other operating
income
|
6,345
|
|
|
4,000
|
|
Total noninterest
income
|
87,575
|
|
|
60,541
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
Compensation and
employee benefits
|
111,452
|
|
|
104,365
|
|
Premises and
occupancy costs
|
21,570
|
|
|
18,906
|
|
Office
operations
|
12,331
|
|
|
10,503
|
|
Collections
expense
|
1,670
|
|
|
1,994
|
|
Processing
expenses
|
29,198
|
|
|
25,430
|
|
Marketing
expenses
|
7,482
|
|
|
6,671
|
|
Federal deposit
insurance premiums
|
2,794
|
|
|
3,929
|
|
Professional
services
|
7,348
|
|
|
5,777
|
|
Amortization of
intangible assets
|
5,189
|
|
|
2,453
|
|
Real estate owned
expense
|
809
|
|
|
812
|
|
Restructuring/
acquisition expense
|
4,255
|
|
|
11,204
|
|
FHLB prepayment
penalty
|
—
|
|
|
36,978
|
|
Other
expense
|
9,609
|
|
|
10,055
|
|
Total noninterest
expense
|
213,707
|
|
|
239,077
|
|
Income before income
taxes
|
107,187
|
|
|
34,460
|
|
|
|
|
|
Income tax
expense
|
34,868
|
|
|
9,287
|
|
Net income
|
$
|
72,319
|
|
|
25,173
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.72
|
|
|
0.25
|
|
Diluted earnings per
share
|
$
|
0.71
|
|
|
0.25
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
100,921,322
|
|
|
|
99,224,565
|
|
Weighted average
common shares outstanding - diluted
|
|
102,538,342
|
|
|
|
100,233,507
|
|
|
|
|
|
Annualized return on
average equity
|
8.16
|
%
|
|
2.90
|
%
|
Annualized return on
average assets
|
1.01
|
%
|
|
0.38
|
%
|
Annualized return on
tangible common equity
|
11.10
|
%
|
|
4.05
|
%
|
|
|
|
|
Efficiency ratio
*
|
64.45
|
%
|
|
66.14
|
%
|
Annualized
noninterest expense to average assets *
|
2.86
|
%
|
|
2.82
|
%
|
|
* 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
September
30,
|
|
Nine months
ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Operating results
(non-GAAP):
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
83,237
|
|
|
77,294
|
|
|
246,545
|
|
|
224,393
|
|
Provision for loan
losses
|
3,027
|
|
|
5,538
|
|
|
13,226
|
|
|
11,397
|
|
Noninterest
income
|
24,594
|
|
|
20,818
|
|
|
70,389
|
|
|
60,541
|
|
Noninterest
expense
|
67,401
|
|
|
61,360
|
|
|
209,452
|
|
|
185,758
|
|
Income
taxes
|
12,973
|
|
|
9,625
|
|
|
29,696
|
|
|
30,616
|
|
Net operating income
(non-GAAP)
|
$
|
24,430
|
|
|
21,589
|
|
|
64,560
|
|
|
57,163
|
|
Diluted earnings per
share (non-GAAP)
|
$
|
0.24
|
|
|
0.21
|
|
|
0.63
|
|
|
0.57
|
|
|
|
|
|
|
|
|
|
Average
equity
|
$
|
1,198,417
|
|
|
|
1,156,137
|
|
|
|
1,184,560
|
|
|
|
1,158,346
|
|
Average
assets
|
9,460,877
|
|
|
9,028,886
|
|
|
9,540,432
|
|
|
8,940,648
|
|
|
|
|
|
|
|
|
|
Annualized ROE
(non-GAAP)
|
8.09
|
%
|
|
7.43
|
%
|
|
7.29
|
%
|
|
6.59
|
%
|
Annualized ROA
(non-GAAP)
|
1.02
|
%
|
|
0.95
|
%
|
|
0.90
|
%
|
|
0.85
|
%
|
|
|
|
|
|
|
|
|
Reconciliation of net
operating income to net income:
|
|
|
|
|
|
|
|
Net operating income
(non-GAAP)
|
$
|
24,430
|
|
|
21,589
|
|
|
64,560
|
|
|
57,163
|
|
Nonoperating income/
expenses, net of tax:
|
|
|
|
|
|
|
|
Gain on sale of
offices
|
—
|
|
|
—
|
|
|
10,311
|
|
|
—
|
|
Restructuring/
acquisition expenses
|
(839)
|
|
|
(4,311)
|
|
|
(2,552)
|
|
|
(6,723)
|
|
Stock-based
compensation expense – ESOP termination
|
—
|
|
|
(3,081)
|
|
|
—
|
|
|
(3,081)
|
|
FHLB prepayment
penalty
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,186)
|
|
Net income/ (loss)
(GAAP)
|
$
|
23,591
|
|
|
14,197
|
|
|
72,319
|
|
|
25,173
|
|
Diluted earnings per
share (GAAP)
|
$
|
0.23
|
|
|
0.14
|
|
|
0.71
|
|
|
0.25
|
|
|
|
|
|
|
|
|
|
Annualized ROE
(GAAP)
|
7.81
|
%
|
|
4.89
|
%
|
|
8.16
|
%
|
|
2.90
|
%
|
Annualized ROA
(GAAP)
|
0.99
|
%
|
|
0.63
|
%
|
|
1.01
|
%
|
|
0.38
|
%
|
|
* 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)
|
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
Nonaccrual loans
current:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
318
|
|
|
841
|
|
|
1,864
|
|
|
2,109
|
|
|
3,063
|
|
Home equity
loans
|
439
|
|
|
158
|
|
|
1,244
|
|
|
1,451
|
|
|
1,446
|
|
Legacy consumer
finance loans
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Consumer
loans
|
259
|
|
|
379
|
|
|
633
|
|
|
520
|
|
|
464
|
|
Commercial real
estate loans
|
10,646
|
|
|
16,189
|
|
|
13,347
|
|
|
13,955
|
|
|
19,246
|
|
Commercial
loans
|
4,098
|
|
|
5,262
|
|
|
5,335
|
|
|
5,361
|
|
|
7,299
|
|
Total nonaccrual
loans current
|
$
|
15,761
|
|
|
|
22,829
|
|
|
|
22,423
|
|
|
|
23,396
|
|
|
|
31,518
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
200
|
|
|
181
|
|
|
1,001
|
|
|
1,464
|
|
|
344
|
|
Home equity
loans
|
466
|
|
|
164
|
|
|
328
|
|
|
422
|
|
|
315
|
|
Legacy consumer
finance loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Consumer
loans
|
200
|
|
|
169
|
|
|
218
|
|
|
400
|
|
|
211
|
|
Commercial real
estate loans
|
597
|
|
|
474
|
|
|
1,970
|
|
|
3,478
|
|
|
514
|
|
Commercial
loans
|
—
|
|
|
32
|
|
|
328
|
|
|
145
|
|
|
185
|
|
Total nonaccrual
loans delinquent 30 days to 59 days
|
$
|
1,463
|
|
|
1,020
|
|
|
3,845
|
|
|
5,909
|
|
|
1,569
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
892
|
|
|
896
|
|
|
704
|
|
|
1,522
|
|
|
1,270
|
|
Home equity
loans
|
499
|
|
|
326
|
|
|
408
|
|
|
440
|
|
|
465
|
|
Legacy consumer
finance loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Consumer
loans
|
405
|
|
|
342
|
|
|
242
|
|
|
366
|
|
|
250
|
|
Commercial real
estate loans
|
5,895
|
|
|
2,233
|
|
|
540
|
|
|
2,027
|
|
|
151
|
|
Commercial
loans
|
3
|
|
|
—
|
|
|
23
|
|
|
695
|
|
|
319
|
|
Total nonaccrual
loans delinquent 60 days to 89 days
|
$
|
7,694
|
|
|
3,797
|
|
|
1,917
|
|
|
5,050
|
|
|
2,455
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
delinquent 90 days or more:
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
11,785
|
|
|
11,637
|
|
|
11,911
|
|
|
13,169
|
|
|
13,242
|
|
Home equity
loans
|
6,295
|
|
|
5,744
|
|
|
6,194
|
|
|
5,552
|
|
|
5,874
|
|
Legacy consumer
finance loans
|
332
|
|
|
536
|
|
|
471
|
|
|
743
|
|
|
800
|
|
Consumer
loans
|
3,244
|
|
|
2,273
|
|
|
2,888
|
|
|
3,080
|
|
|
2,554
|
|
Commercial real
estate loans
|
22,583
|
|
|
21,295
|
|
|
20,897
|
|
|
19,264
|
|
|
22,155
|
|
Commercial
loans
|
4,177
|
|
|
3,642
|
|
|
2,744
|
|
|
3,373
|
|
|
6,105
|
|
Total nonaccrual
loans delinquent 90 days or more
|
$
|
48,416
|
|
|
45,127
|
|
|
45,105
|
|
|
45,181
|
|
|
50,730
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual
loans
|
$
|
73,334
|
|
|
72,773
|
|
|
73,290
|
|
|
79,536
|
|
|
86,272
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual
loans
|
$
|
73,334
|
|
|
72,773
|
|
|
73,290
|
|
|
79,536
|
|
|
86,272
|
|
Loans 90 days past
maturity and still accruing
|
398
|
|
|
182
|
|
|
265
|
|
|
649
|
|
|
103
|
|
Nonperforming
loans
|
73,732
|
|
|
72,955
|
|
|
73,555
|
|
|
80,185
|
|
|
86,375
|
|
Real estate owned,
net
|
5,462
|
|
|
6,030
|
|
|
6,242
|
|
|
4,889
|
|
|
4,841
|
|
Nonperforming
assets
|
$
|
79,194
|
|
|
78,985
|
|
|
79,797
|
|
|
85,074
|
|
|
91,216
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual troubled
debt restructuring *
|
$
|
17,809
|
|
|
17,873
|
|
|
18,273
|
|
|
16,346
|
|
|
17,374
|
|
Accruing troubled
debt restructuring
|
20,660
|
|
|
23,987
|
|
|
25,305
|
|
|
26,580
|
|
|
29,221
|
|
Total troubled debt
restructuring
|
$
|
38,469
|
|
|
41,860
|
|
|
43,578
|
|
|
42,926
|
|
|
46,595
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
to total loans
|
0.95
|
%
|
|
0.95
|
%
|
|
0.97
|
%
|
|
1.06
|
%
|
|
1.11
|
%
|
Nonperforming assets
to total assets
|
0.84
|
%
|
|
0.83
|
%
|
|
0.82
|
%
|
|
0.88
|
%
|
|
0.94
|
%
|
Allowance for loan
losses to total loans
|
0.74
|
%
|
|
0.82
|
%
|
|
0.81
|
%
|
|
0.81
|
%
|
|
0.81
|
%
|
Allowance for loan
losses to nonperforming loans
|
77.16
|
%
|
|
86.20
|
%
|
|
83.07
|
%
|
|
76.00
|
%
|
|
73.22
|
%
|
|
* Amounts included in
nonperforming loans above.
|
Northwest
Bancshares, Inc. and Subsidiaries
|
Loans by Credit
Quality Indicators (Unaudited)
|
(Dollars in
thousands)
|
|
At September 30,
2017
|
|
Pass
|
|
Special
mention
*
|
|
Substandard
**
|
|
Doubtful
|
|
Loss
|
|
Loans
receivable
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
|
$
|
2,725,060
|
|
|
—
|
|
|
18,166
|
|
|
—
|
|
|
—
|
|
|
2,743,226
|
|
Home equity
loans
|
|
1,302,036
|
|
|
—
|
|
|
11,399
|
|
|
—
|
|
|
—
|
|
|
1,313,435
|
|
Consumer
loans
|
|
669,532
|
|
|
—
|
|
|
4,388
|
|
|
—
|
|
|
—
|
|
|
673,920
|
|
Total Personal
Banking
|
|
4,696,628
|
|
|
—
|
|
|
33,953
|
|
|
—
|
|
|
—
|
|
|
4,730,581
|
|
Commercial
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate loans
|
|
2,196,510
|
|
|
56,118
|
|
|
146,258
|
|
|
—
|
|
|
—
|
|
|
2,398,886
|
|
Commercial
loans
|
|
526,824
|
|
|
18,924
|
|
|
50,923
|
|
|
—
|
|
|
—
|
|
|
596,671
|
|
Total Commercial
Banking
|
|
2,723,334
|
|
|
75,042
|
|
|
197,181
|
|
|
—
|
|
|
—
|
|
|
2,995,557
|
|
Total
loans
|
|
$
|
7,419,962
|
|
|
75,042
|
|
|
231,134
|
|
|
—
|
|
|
—
|
|
|
7,726,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage loans
|
|
$
|
2,718,866
|
|
|
—
|
|
|
16,916
|
|
|
—
|
|
|
—
|
|
|
2,735,782
|
|
Home equity
loans
|
|
1,307,022
|
|
|
—
|
|
|
8,699
|
|
|
—
|
|
|
—
|
|
|
1,315,721
|
|
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
|
|
$
|
2,673,678
|
|
|
—
|
|
|
16,866
|
|
|
—
|
|
|
—
|
|
|
2,690,544
|
|
Home equity
loans
|
|
1,311,707
|
|
|
—
|
|
|
9,212
|
|
|
—
|
|
|
—
|
|
|
1,320,919
|
|
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 30,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage loans
|
|
$
|
2,680,107
|
|
|
—
|
|
|
18,059
|
|
|
—
|
|
|
—
|
|
|
2,698,166
|
|
Home equity
loans
|
|
1,335,596
|
|
|
—
|
|
|
9,774
|
|
|
—
|
|
|
—
|
|
|
1,345,370
|
|
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
|
|
$
|
2,783,338
|
|
|
—
|
|
|
18,593
|
|
|
—
|
|
|
—
|
|
|
2,801,931
|
|
Home equity
loans
|
|
1,355,725
|
|
|
—
|
|
|
10,462
|
|
|
—
|
|
|
—
|
|
|
1,366,187
|
|
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
|
|
|
* Includes $8.9
million $9.7 million, $12.4 million, $9.4 million, and $19.3
million of acquired loans at September 30, 2017, June 30, 2017,
March 31, 2017, December 31, 2016, and September 30, 2016,
respectively.
|
** Includes $48.2
million, $44.8 million, $45.3 million, $39.1 million, and $29.8
million of acquired loans at September 30, 2017, June 30, 2017,
March 31, 2017, December 31, 2016, and September 30, 2016,
respectively.
|
Northwest
Bancshares, Inc. and Subsidiaries
|
Loan Delinquency
(Unaudited)
|
(Dollars in
thousands)
|
|
|
|
September 30,
2017
|
|
*
|
|
June 30,
2017
|
|
*
|
|
March 31,
2017
|
|
*
|
|
December 30,
2016
|
|
*
|
|
September 30,
2016
|
|
*
|
(Number of loans and
dollar amount of loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 30
days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
44
|
|
|
$
|
2,771
|
|
|
0.1
|
%
|
|
64
|
|
|
$
|
2,893
|
|
|
0.1
|
%
|
|
280
|
|
|
$
|
22,254
|
|
|
0.8
|
%
|
|
360
|
|
|
$
|
27,386
|
|
|
1.0
|
%
|
|
74
|
|
|
$
|
3,380
|
|
|
0.1
|
%
|
Home equity
loans
|
|
191
|
|
|
7,330
|
|
|
0.6
|
%
|
|
111
|
|
|
4,058
|
|
|
0.3
|
%
|
|
125
|
|
|
4,586
|
|
|
0.4
|
%
|
|
179
|
|
|
6,805
|
|
|
0.5
|
%
|
|
164
|
|
|
4,984
|
|
|
0.4
|
%
|
Legacy consumer
finance loans
|
|
1,045
|
|
|
3,065
|
|
|
11.4
|
%
|
|
581
|
|
|
1,785
|
|
|
4.1
|
%
|
|
308
|
|
|
947
|
|
|
1.8
|
%
|
|
410
|
|
|
1,255
|
|
|
2.1
|
%
|
|
472
|
|
|
1,566
|
|
|
2.6
|
%
|
Consumer
loans
|
|
1,119
|
|
|
9,510
|
|
|
1.5
|
%
|
|
818
|
|
|
6,793
|
|
|
1.1
|
%
|
|
714
|
|
|
6,210
|
|
|
1.1
|
%
|
|
1,087
|
|
|
8,613
|
|
|
1.5
|
%
|
|
797
|
|
|
6,017
|
|
|
1.1
|
%
|
Commercial real
estate loans
|
|
27
|
|
|
5,753
|
|
|
0.2
|
%
|
|
38
|
|
|
4,629
|
|
|
0.2
|
%
|
|
60
|
|
|
9,364
|
|
|
0.4
|
%
|
|
61
|
|
|
10,377
|
|
|
0.4
|
%
|
|
28
|
|
|
3,855
|
|
|
0.2
|
%
|
Commercial
loans
|
|
16
|
|
|
746
|
|
|
0.1
|
%
|
|
20
|
|
|
1,378
|
|
|
0.2
|
%
|
|
29
|
|
|
2,304
|
|
|
0.4
|
%
|
|
20
|
|
|
1,178
|
|
|
0.2
|
%
|
|
26
|
|
|
1,493
|
|
|
0.3
|
%
|
Total loans
delinquent 30 days to 59 days
|
|
2,442
|
|
|
$
|
29,175
|
|
|
0.4
|
%
|
|
1,632
|
|
|
$
|
21,536
|
|
|
0.3
|
%
|
|
1,516
|
|
|
$
|
45,665
|
|
|
0.6
|
%
|
|
2,117
|
|
|
$
|
55,614
|
|
|
0.7
|
%
|
|
1,561
|
|
|
$
|
21,295
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60
days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
84
|
|
|
$
|
7,196
|
|
|
0.3
|
%
|
|
72
|
|
|
$
|
6,320
|
|
|
0.2
|
%
|
|
28
|
|
|
$
|
1,594
|
|
|
0.1
|
%
|
|
80
|
|
|
$
|
6,227
|
|
|
0.2
|
%
|
|
76
|
|
|
$
|
6,174
|
|
|
0.2
|
%
|
Home equity
loans
|
|
73
|
|
|
2,390
|
|
|
0.2
|
%
|
|
44
|
|
|
1,522
|
|
|
0.1
|
%
|
|
36
|
|
|
1,145
|
|
|
0.1
|
%
|
|
62
|
|
|
1,563
|
|
|
0.1
|
%
|
|
41
|
|
|
1,145
|
|
|
0.1
|
%
|
Legacy consumer
finance loans
|
|
831
|
|
|
2,190
|
|
|
8.1
|
%
|
|
276
|
|
|
759
|
|
|
1.7
|
%
|
|
164
|
|
|
475
|
|
|
0.9
|
%
|
|
235
|
|
|
766
|
|
|
1.3
|
%
|
|
236
|
|
|
729
|
|
|
1.2
|
%
|
Consumer
loans
|
|
473
|
|
|
3,283
|
|
|
0.5
|
%
|
|
347
|
|
|
2,475
|
|
|
0.4
|
%
|
|
266
|
|
|
1,766
|
|
|
0.3
|
%
|
|
401
|
|
|
2,843
|
|
|
0.5
|
%
|
|
296
|
|
|
1,944
|
|
|
0.3
|
%
|
Commercial real
estate loans
|
|
22
|
|
|
7,666
|
|
|
0.3
|
%
|
|
14
|
|
|
3,368
|
|
|
0.1
|
%
|
|
19
|
|
|
3,034
|
|
|
0.1
|
%
|
|
25
|
|
|
4,495
|
|
|
0.2
|
%
|
|
13
|
|
|
1,102
|
|
|
—
|
%
|
Commercial
loans
|
|
9
|
|
|
196
|
|
|
—
|
%
|
|
9
|
|
|
199
|
|
|
—
|
%
|
|
10
|
|
|
499
|
|
|
0.1
|
%
|
|
21
|
|
|
2,081
|
|
|
0.4
|
%
|
|
9
|
|
|
594
|
|
|
0.1
|
%
|
Total loans
delinquent 60 days to 89 days
|
|
1,492
|
|
|
$
|
22,921
|
|
|
0.3
|
%
|
|
762
|
|
|
$
|
14,643
|
|
|
0.2
|
%
|
|
523
|
|
|
$
|
8,513
|
|
|
0.1
|
%
|
|
824
|
|
|
$
|
17,975
|
|
|
0.2
|
%
|
|
671
|
|
|
$
|
11,688
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90
days or more: **
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
143
|
|
|
$
|
12,190
|
|
|
0.4
|
%
|
|
145
|
|
|
$
|
12,053
|
|
|
0.4
|
%
|
|
139
|
|
|
$
|
12,326
|
|
|
0.5
|
%
|
|
169
|
|
|
$
|
13,621
|
|
|
0.5
|
%
|
|
168
|
|
|
$
|
13,478
|
|
|
0.5
|
%
|
Home equity
loans
|
|
150
|
|
|
6,397
|
|
|
0.5
|
%
|
|
126
|
|
|
5,800
|
|
|
0.4
|
%
|
|
143
|
|
|
6,258
|
|
|
0.5
|
%
|
|
155
|
|
|
5,756
|
|
|
0.4
|
%
|
|
137
|
|
|
6,022
|
|
|
0.4
|
%
|
Legacy consumer
finance loans
|
|
124
|
|
|
332
|
|
|
1.2
|
%
|
|
188
|
|
|
536
|
|
|
1.2
|
%
|
|
169
|
|
|
471
|
|
|
0.9
|
%
|
|
228
|
|
|
743
|
|
|
1.2
|
%
|
|
242
|
|
|
800
|
|
|
1.3
|
%
|
Consumer
loans
|
|
428
|
|
|
3,254
|
|
|
0.5
|
%
|
|
299
|
|
|
2,285
|
|
|
0.4
|
%
|
|
363
|
|
|
2,901
|
|
|
0.5
|
%
|
|
418
|
|
|
3,095
|
|
|
0.5
|
%
|
|
515
|
|
|
2,572
|
|
|
0.5
|
%
|
Commercial real
estate loans
|
|
113
|
|
|
23,310
|
|
|
1.0
|
%
|
|
108
|
|
|
22,044
|
|
|
0.9
|
%
|
|
106
|
|
|
23,009
|
|
|
1.0
|
%
|
|
101
|
|
|
21,270
|
|
|
0.9
|
%
|
|
106
|
|
|
24,533
|
|
|
1.0
|
%
|
Commercial
loans
|
|
45
|
|
|
4,177
|
|
|
0.7
|
%
|
|
39
|
|
|
3,642
|
|
|
0.6
|
%
|
|
39
|
|
|
2,744
|
|
|
0.5
|
%
|
|
37
|
|
|
3,520
|
|
|
0.7
|
%
|
|
28
|
|
|
6,249
|
|
|
1.2
|
%
|
Total loans
delinquent 90 days or more
|
|
1,003
|
|
|
$
|
49,660
|
|
|
0.6
|
%
|
|
905
|
|
|
$
|
46,360
|
|
|
0.6
|
%
|
|
959
|
|
|
$
|
47,709
|
|
|
0.6
|
%
|
|
1,108
|
|
|
$
|
48,005
|
|
|
0.6
|
%
|
|
1,196
|
|
|
$
|
53,654
|
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
delinquent
|
|
4,937
|
|
|
$
|
101,756
|
|
|
1.3
|
%
|
|
3,299
|
|
|
$
|
82,539
|
|
|
1.1
|
%
|
|
2,998
|
|
|
$
|
101,887
|
|
|
1.3
|
%
|
|
4,049
|
|
|
$
|
121,594
|
|
|
1.5
|
%
|
|
3,428
|
|
|
$
|
86,637
|
|
|
1.1
|
%
|
|
* 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, $1.2 million, $2.6 million,
$2.8 million, and $2.9 million at September 30, 2017, June 30,
2017, March 31, 2017, December 31, 2016, and September 30, 2016,
respectively.
|
Northwest
Bancshares, Inc. and Subsidiaries
|
Allowance for Loan
Losses (Unaudited)
|
(Dollars in
thousands)
|
|
|
Quarter ended
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
Beginning
balance
|
$
|
62,885
|
|
|
61,104
|
|
|
60,939
|
|
|
63,246
|
|
|
60,781
|
|
Provision
|
3,027
|
|
|
5,562
|
|
|
4,637
|
|
|
2,145
|
|
|
5,538
|
|
Charge-offs residential mortgage
|
(215)
|
|
|
(372)
|
|
|
(290)
|
|
|
(710)
|
|
|
(354)
|
|
Charge-offs home equity
|
(528)
|
|
|
(689)
|
|
|
(649)
|
|
|
(321)
|
|
|
(288)
|
|
Charge-offs legacy consumer finance
|
(3,891)
|
|
|
(782)
|
|
|
(796)
|
|
|
(1,003)
|
|
|
(835)
|
|
Charge-offs consumer
|
(3,002)
|
|
|
(2,735)
|
|
|
(2,864)
|
|
|
(2,466)
|
|
|
(1,866)
|
|
Charge-offs commercial real estate
|
(1,901)
|
|
|
(329)
|
|
|
(474)
|
|
|
(323)
|
|
|
(789)
|
|
Charge-offs commercial
|
(509)
|
|
|
(929)
|
|
|
(1,267)
|
|
|
(2,489)
|
|
|
(708)
|
|
Recoveries
|
1,061
|
|
|
2,055
|
|
|
1,868
|
|
|
2,860
|
|
|
1,767
|
|
Ending
balance
|
$
|
56,927
|
|
|
|
62,885
|
|
|
|
61,104
|
|
|
|
60,939
|
|
|
|
63,246
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans, annualized
|
0.47
|
%
|
|
0.20
|
%
|
|
0.23
|
%
|
|
0.23
|
%
|
|
0.17
|
%
|
|
|
|
Nine months ended
September 30,
|
|
2017
|
|
2016
|
Beginning
balance
|
$
|
60,939
|
|
|
62,672
|
|
Provision
|
13,226
|
|
|
11,397
|
|
Charge-offs residential mortgage
|
(877)
|
|
|
(2,770)
|
|
Charge-offs home equity
|
(1,866)
|
|
|
(2,218)
|
|
Charge-offs
legacy consumer finance
|
(5,469)
|
|
|
(2,321)
|
|
Charge-offs consumer
|
(8,601)
|
|
|
(5,115)
|
|
Charge-offs commercial real estate
|
(2,704)
|
|
|
(3,417)
|
|
Charge-offs commercial
|
(2,705)
|
|
|
(1,728)
|
|
Recoveries
|
4,984
|
|
|
6,746
|
|
Ending
balance
|
$
|
56,927
|
|
|
|
63,246
|
|
|
|
|
|
Net charge-offs to
average loans, annualized
|
0.30
|
%
|
|
0.20
|
%
|
|
|
|
September 30,
2017
|
|
Originated
loans
|
|
Acquired
loans
|
|
Total
loans
|
|
Balance
|
|
Reserve
|
|
Balance
|
|
Reserve
|
|
Balance
|
|
Reserve
|
Residential mortgage
loans
|
$
|
2,623,763
|
|
|
3,986
|
|
|
119,463
|
|
|
77
|
|
|
2,743,226
|
|
|
4,063
|
|
Home equity
loans
|
1,045,152
|
|
|
3,295
|
|
|
268,283
|
|
|
748
|
|
|
1,313,435
|
|
|
4,043
|
|
Legacy consumer
finance loans
|
26,892
|
|
|
4,876
|
|
|
—
|
|
|
—
|
|
|
26,892
|
|
|
4,876
|
|
Consumer
loans
|
534,618
|
|
|
7,383
|
|
|
112,410
|
|
|
594
|
|
|
647,028
|
|
|
7,977
|
|
Personal Banking
Loans
|
4,230,425
|
|
|
19,540
|
|
|
500,156
|
|
|
1,419
|
|
|
4,730,581
|
|
|
20,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate loans
|
2,089,383
|
|
|
20,174
|
|
|
309,503
|
|
|
3,301
|
|
|
2,398,886
|
|
|
23,475
|
|
Commercial
loans
|
528,231
|
|
|
11,131
|
|
|
68,440
|
|
|
1,362
|
|
|
596,671
|
|
|
12,493
|
|
Commercial Banking
Loans
|
2,617,614
|
|
|
31,305
|
|
|
377,943
|
|
|
4,663
|
|
|
2,995,557
|
|
|
35,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Loans
|
$
|
6,848,039
|
|
|
|
50,845
|
|
|
|
878,099
|
|
|
|
6,082
|
|
|
|
7,726,138
|
|
|
|
56,927
|
|
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
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 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
|
$
|
2,732,546
|
|
|
28,279
|
|
|
4.14
|
%
|
|
$
|
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
|
%
|
Home equity
loans
|
1,299,473
|
|
|
14,694
|
|
|
4.49
|
%
|
|
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
|
%
|
Consumer
loans
|
617,754
|
|
|
7,627
|
|
|
4.90
|
%
|
|
595,170
|
|
|
7,405
|
|
|
4.99
|
%
|
|
580,836
|
|
|
7,219
|
|
|
5.04
|
%
|
|
571,108
|
|
|
7,580
|
|
|
5.28
|
%
|
|
504,376
|
|
|
6,267
|
|
|
4.94
|
%
|
Legacy
consumer finance loans
|
33,469
|
|
|
1,433
|
|
|
17.13
|
%
|
|
40,945
|
|
|
2,110
|
|
|
20.61
|
%
|
|
46,452
|
|
|
2,482
|
|
|
21.37
|
%
|
|
49,186
|
|
|
2,503
|
|
|
20.36
|
%
|
|
50,578
|
|
|
2,664
|
|
|
21.07
|
%
|
Commercial
real estate loans
|
2,389,969
|
|
|
27,234
|
|
|
4.46
|
%
|
|
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
|
%
|
Commercial
loans
|
593,143
|
|
|
6,659
|
|
|
4.39
|
%
|
|
554,506
|
|
|
6,087
|
|
|
4.34
|
%
|
|
522,847
|
|
|
5,515
|
|
|
4.22
|
%
|
|
527,330
|
|
|
5,682
|
|
|
4.27
|
%
|
|
476,715
|
|
|
5,193
|
|
|
4.26
|
%
|
Total loans
receivable (a) (b) (d)
|
7,666,354
|
|
|
85,926
|
|
|
4.45
|
%
|
|
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
|
%
|
Mortgage-backed
securities (c)
|
607,454
|
|
|
3,118
|
|
|
2.05
|
%
|
|
592,917
|
|
|
2,987
|
|
|
2.02
|
%
|
|
471,674
|
|
|
2,222
|
|
|
1.88
|
%
|
|
482,707
|
|
|
2,166
|
|
|
1.79
|
%
|
|
440,966
|
|
|
2,030
|
|
|
1.84
|
%
|
Investment securities
(c) (d)
|
352,813
|
|
|
1,690
|
|
|
1.92
|
%
|
|
372,398
|
|
|
1,796
|
|
|
1.93
|
%
|
|
377,819
|
|
|
1,881
|
|
|
1.99
|
%
|
|
401,602
|
|
|
1,950
|
|
|
1.94
|
%
|
|
275,718
|
|
|
1,667
|
|
|
2.42
|
%
|
FHLB stock
|
7,748
|
|
|
63
|
|
|
3.23
|
%
|
|
7,602
|
|
|
50
|
|
|
2.64
|
%
|
|
7,305
|
|
|
59
|
|
|
3.28
|
%
|
|
7,575
|
|
|
285
|
|
|
4.54
|
%
|
|
27,761
|
|
|
218
|
|
|
3.12
|
%
|
Other
interest-earning deposits
|
71,482
|
|
|
243
|
|
|
1.33
|
%
|
|
208,141
|
|
|
536
|
|
|
1.02
|
%
|
|
294,391
|
|
|
660
|
|
|
0.90
|
%
|
|
325,889
|
|
|
300
|
|
|
0.36
|
%
|
|
91,243
|
|
|
114
|
|
|
0.49
|
%
|
Total
interest-earning assets
|
8,705,851
|
|
|
91,040
|
|
|
4.15
|
%
|
|
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
|
%
|
Noninterest earning
assets (e)
|
755,026
|
|
|
|
|
|
|
716,913
|
|
|
|
|
|
|
799,569
|
|
|
|
|
|
|
677,888
|
|
|
|
|
|
|
835,500
|
|
|
|
|
|
Total
assets
|
$
|
9,460,877
|
|
|
|
|
|
|
$
|
9,551,905
|
|
|
|
|
|
|
$
|
9,608,514
|
|
|
|
|
|
|
$
|
9,624,403
|
|
|
|
|
|
|
$
|
9,028,886
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
deposits
|
$
|
1,681,777
|
|
|
776
|
|
|
0.18
|
%
|
|
$
|
1,714,290
|
|
|
768
|
|
|
0.18
|
%
|
|
$
|
1,702,528
|
|
|
755
|
|
|
0.18
|
%
|
|
$
|
1,668,492
|
|
|
771
|
|
|
0.18
|
%
|
|
$
|
1,485,763
|
|
|
744
|
|
|
0.20
|
%
|
Interest-bearing
demand deposits
|
1,435,143
|
|
|
297
|
|
|
0.08
|
%
|
|
1,451,787
|
|
|
283
|
|
|
0.08
|
%
|
|
1,422,284
|
|
|
116
|
|
|
0.03
|
%
|
|
1,431,671
|
|
|
85
|
|
|
0.02
|
%
|
|
1,179,557
|
|
|
78
|
|
|
0.03
|
%
|
Money market deposit
accounts
|
1,789,082
|
|
|
1,048
|
|
|
0.23
|
%
|
|
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
|
%
|
Time
deposits
|
1,449,830
|
|
|
3,674
|
|
|
1.01
|
%
|
|
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
|
%
|
Borrowed funds
(f)
|
106,282
|
|
|
49
|
|
|
0.18
|
%
|
|
126,685
|
|
|
55
|
|
|
0.17
|
%
|
|
136,872
|
|
|
58
|
|
|
0.17
|
%
|
|
143,540
|
|
|
61
|
|
|
0.17
|
%
|
|
560,407
|
|
|
657
|
|
|
0.47
|
%
|
Junior subordinated
debentures
|
111,213
|
|
|
1,150
|
|
|
4.05
|
%
|
|
111,213
|
|
|
1,185
|
|
|
4.22
|
%
|
|
111,213
|
|
|
1,167
|
|
|
4.20
|
%
|
|
111,213
|
|
|
1,171
|
|
|
4.12
|
%
|
|
111,213
|
|
|
1,144
|
|
|
4.03
|
%
|
Total
interest-bearing liabilities
|
6,573,327
|
|
|
6,994
|
|
|
0.42
|
%
|
|
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
|
%
|
Noninterest-bearing
demand deposits (g)
|
1,573,112
|
|
|
|
|
|
|
1,544,953
|
|
|
|
|
|
|
1,506,268
|
|
|
|
|
|
|
1,493,528
|
|
|
|
|
|
|
1,243,474
|
|
|
|
|
|
Noninterest bearing
liabilities
|
116,021
|
|
|
|
|
|
|
59,277
|
|
|
|
|
|
|
106,578
|
|
|
|
|
|
|
77,827
|
|
|
|
|
|
|
276,014
|
|
|
|
|
|
Total
liabilities
|
8,262,460
|
|
|
|
|
|
|
8,366,548
|
|
|
|
|
|
|
8,438,609
|
|
|
|
|
|
|
8,460,276
|
|
|
|
|
|
|
7,872,749
|
|
|
|
|
|
Shareholders'
equity
|
1,198,417
|
|
|
|
|
|
|
1,185,357
|
|
|
|
|
|
|
1,169,905
|
|
|
|
|
|
|
1,164,127
|
|
|
|
|
|
|
1,156,137
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
9,460,877
|
|
|
|
|
|
|
$
|
9,551,905
|
|
|
|
|
|
|
$
|
9,608,514
|
|
|
|
|
|
|
$
|
9,624,403
|
|
|
|
|
|
|
$
|
9,028,886
|
|
|
|
|
|
Net interest income/
Interest rate spread
|
|
|
|
84,046
|
|
|
3.73
|
%
|
|
|
|
|
83,565
|
|
|
3.69
|
%
|
|
|
|
|
81,420
|
|
|
3.66
|
%
|
|
|
|
|
83,845
|
|
|
3.63
|
%
|
|
|
|
|
78,218
|
|
|
3.69
|
%
|
Net interest-earning
assets/ Net interest margin
|
$
|
2,132,524
|
|
|
|
|
3.86
|
%
|
|
$
|
2,072,674
|
|
|
|
|
3.78
|
%
|
|
$
|
1,983,182
|
|
|
|
|
3.75
|
%
|
|
$
|
2,057,594
|
|
|
|
|
3.75
|
%
|
|
$
|
1,840,125
|
|
|
|
|
3.82
|
%
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.32X
|
|
|
|
|
|
|
1.31X
|
|
|
|
|
|
|
1.29X
|
|
|
|
|
|
|
1.30X
|
|
|
|
|
|
|
1.29X
|
|
|
|
|
|
|
(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%, 0.29%, 0.27%, 0.29% and 0.32%,
respectively.
|
(h) Shown on a
FTE basis. GAAP basis yields for the periods indicated were: Loans
- 4.42%, 4.44%, 4.38%, 4.41% and 4.38%,
respectively, Investment securities - 1.62%, 1.62%, 1.67%,
1.61% and 1.89%, respectively, Interest-earning assets -
4.11%, 4.08%, 4.02%, 4.00% and 4.11%, respectively. GAAP basis net
interest rate spreads were 3.69%, 3.66%, 3.62%, 3.59% and 3.65%,
respectively, and GAAP basis net interest margins were 3.82%,
3.75%, 3.71%, 3.71% and 3.77%, 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.
|
|
|
Nine months ended
September 30,
|
|
2017
|
|
2016
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
|
Average
balance
|
|
Interest
|
|
Avg.
yield/
cost (h)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage loans
|
$
|
2,724,348
|
|
|
83,833
|
|
|
4.10
|
%
|
|
$
|
2,743,480
|
|
|
86,826
|
|
|
4.22
|
%
|
Home equity
loans
|
1,314,344
|
|
|
43,239
|
|
|
4.40
|
%
|
|
1,178,133
|
|
|
38,229
|
|
|
4.33
|
%
|
Consumer
loans
|
598,056
|
|
|
22,251
|
|
|
4.97
|
%
|
|
477,814
|
|
|
17,768
|
|
|
4.97
|
%
|
Legacy
consumer finance loans
|
40,241
|
|
|
6,025
|
|
|
19.96
|
%
|
|
51,542
|
|
|
8,080
|
|
|
20.90
|
%
|
Commercial
real estate loans
|
2,425,302
|
|
|
80,867
|
|
|
4.40
|
%
|
|
2,367,014
|
|
|
79,367
|
|
|
4.41
|
%
|
Commercial
loans
|
560,677
|
|
|
18,260
|
|
|
4.29
|
%
|
|
460,228
|
|
|
14,817
|
|
|
4.23
|
%
|
Loans receivable
(a) (b) (d)
|
7,662,968
|
|
|
254,475
|
|
|
4.44
|
%
|
|
7,278,211
|
|
|
245,087
|
|
|
4.50
|
%
|
Mortgage-backed
securities (c)
|
557,846
|
|
|
8,327
|
|
|
1.99
|
%
|
|
462,474
|
|
|
6,374
|
|
|
1.84
|
%
|
Investment securities
(c) (d)
|
367,585
|
|
|
5,366
|
|
|
1.95
|
%
|
|
325,427
|
|
|
5,662
|
|
|
2.32
|
%
|
FHLB stock
|
7,553
|
|
|
172
|
|
|
3.04
|
%
|
|
32,702
|
|
|
1,086
|
|
|
4.44
|
%
|
Other
interest-earning deposits
|
201,643
|
|
|
1,440
|
|
|
0.94
|
%
|
|
57,996
|
|
|
243
|
|
|
0.55
|
%
|
Total
interest-earning assets
|
8,797,595
|
|
|
269,780
|
|
|
4.10
|
%
|
|
8,156,810
|
|
|
258,452
|
|
|
4.23
|
%
|
Noninterest earning
assets (e)
|
742,837
|
|
|
|
|
|
|
783,838
|
|
|
|
|
|
Total
assets
|
$
|
9,540,432
|
|
|
|
|
|
|
$
|
8,940,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings
deposits
|
$
|
1,699,455
|
|
|
2,300
|
|
|
0.18
|
%
|
|
$
|
1,444,302
|
|
|
2,446
|
|
|
0.23
|
%
|
Interest-bearing
demand deposits
|
1,436,442
|
|
|
696
|
|
|
0.06
|
%
|
|
1,134,669
|
|
|
378
|
|
|
0.04
|
%
|
Money market deposit
accounts
|
1,835,638
|
|
|
3,186
|
|
|
0.23
|
%
|
|
1,334,158
|
|
|
2,520
|
|
|
0.25
|
%
|
Time
deposits
|
1,513,565
|
|
|
10,904
|
|
|
0.96
|
%
|
|
1,625,936
|
|
|
12,262
|
|
|
1.01
|
%
|
Borrowed funds
(f)
|
123,168
|
|
|
161
|
|
|
0.17
|
%
|
|
743,353
|
|
|
10,213
|
|
|
1.84
|
%
|
Junior subordinated
debentures
|
111,213
|
|
|
3,503
|
|
|
4.15
|
%
|
|
111,213
|
|
|
3,389
|
|
|
4.00
|
%
|
Total
interest-bearing liabilities
|
6,719,481
|
|
|
20,750
|
|
|
0.41
|
%
|
|
6,393,631
|
|
|
31,208
|
|
|
0.65
|
%
|
Noninterest-bearing
demand deposits (g)
|
1,541,845
|
|
|
|
|
|
|
1,196,737
|
|
|
|
|
|
Noninterest bearing
liabilities
|
94,546
|
|
|
|
|
|
|
191,934
|
|
|
|
|
|
Total
liabilities
|
8,355,872
|
|
|
|
|
|
|
7,782,302
|
|
|
|
|
|
Shareholders'
equity
|
1,184,560
|
|
|
|
|
|
|
1,158,346
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
9,540,432
|
|
|
|
|
|
|
$
|
8,940,648
|
|
|
|
|
|
Net interest income/
Interest rate spread
|
|
|
|
249,030
|
|
|
3.69
|
%
|
|
|
|
|
227,244
|
|
|
3.58
|
%
|
Net interest-earning
assets/ Net interest margin
|
$
|
2,078,114
|
|
|
|
|
3.77
|
%
|
|
$
|
1,763,179
|
|
|
|
|
3.71
|
%
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
1.31X
|
|
|
|
|
|
|
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 0.28%, and 0.35%, respectively.
|
(h) Shown on a
FTE basis. GAAP basis yields for the periods indicated were: Loans
- 4.41% and 4.47%, respectively, Investment securities - 1.64%
and 1.86%, respectively, Interest-earning assets - 4.06% and
4.19%, respectively. GAAP basis net interest rate spreads were
3.65% and 3.53%, respectively, and GAAP basis net interest margins
were 3.74% and 3.67%, respectively.
|
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SOURCE Northwest Bancshares, Inc.