Northwest Bancshares, Inc. Announces Third Quarter 2020 Earnings and Quarterly Dividend
10/26/2020 - 09:00 AM
WARREN, Pa. , Oct. 26, 2020 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2020 of $38.1 million $0.30 $4.6 million 13.9% , compared to the same quarter last year when net income was $33.4 million $0.31 9.82% and 1.09% compared to 9.90% and 1.25% for the same quarter last year. As noted in the non-GAAP reconciliation, when adjusting for COVID-related provision expense and branch optimization related costs, non-GAAP net income was approximately $40.1 million $0.32 $6.7 million 20.0% , and result in a return on average shareholders' equity of 10.36% and a return on average assets of 1.15% .
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.19 th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of September 30, 2020, this represents an annualized dividend yield of approximately 8.26% .
In making this announcement, Ronald J. Seiffert , Chairman, President and CEO, noted, "We are very pleased with the many positive results in the current quarter beginning once again with strong fee income led by our mortgage banking operations. We are also delighted to report that our credit loss provision decreased significantly from the first and second quarters, as expected, and essentially mirrored net charge-offs in the third quarter. From a credit quality perspective, delinquencies continue to be well maintained and loans requesting payment deferrals have decreased significantly from last quarter from $1.31 2 billion12.1% of the loan portfolio, at June 30, 2020 to just $212.7 million 2.0% , at September 30 , 2020. Although classified assets jumped by $161.3 million 54.4% , during the quarter to $457.8 million 45% of total classified assets are in the hotel/hospitality industry with virtually all the increase attributable to downgrades in this sector as second deferral requests were considered."
Mr. Seiffert continued, "Looking ahead, we are anxious to execute upon the initiatives we have set in motion this year including branch optimization to be completed in December, the continued implementation of our digital strategy and capitalizing on our very successful subordinated debt offering."
Net interest income increased by $12.6 million 13.9% , to $103.5 million $90.9 million $6.2 million 6.1% , increase in interest income on loans receivable. This increase in interest income was mainly due to an increase of $2.03 1 billion23.2% , in the average balance of loans, primarily as a result of the acquisition of MutualBank during the second quarter of 2020. Also contributing to this increase in net interest income was a decrease of $6.1 million 38.0% , in total interest expense due to a decline in market interest rates when compared to the prior year, resulting in a decrease in the cost of our interest-bearing liabilities to 0.42% for the quarter ended September 30, 2020 from 0.89% for the quarter ended September 30, 2019. Despite the overall increase in net interest income, net interest margin decreased to 3.26% for the quarter ended September 30, 2020 from 3.79% for the same quarter last year as interest earning asset yields decreased to 3.55% for the quarter ended September 30, 2020 from 4.41% for the quarter ended September 30, 2019. Contributing to the decline in asset yields was the increase in average cash balances of $762.8 million 0.11% , due to deposit growth associated with Payroll Protection Program ("PPP") loan funds and consumer stimulus checks. In addition, PPP loan balances of approximately $500 million 1.00% , have negatively impacted overall interest earning asset yields.
The provision for credit losses increased by $3.5 million $6.8 million $3.3 million $1.5 million $457.8 million 4.25% of total loans, at September 30, 2020 from $205.9 million 2.33% of total loans, as of September 30, 2019 .
Noninterest income increased by $10.5 million 40.1% , to $36.7 million $26.2 million $9.1 million $11.1 million $1.9 million $796,000 5.9% , increase in service charges and fees and a $767,000 16.6% , increase in trust and other financial services income, both primarily due to additional fee income as a result of the acquisition of MutualBank.
Noninterest expense increased by $16.3 million 23.1% , to $86.9 million $70.6 million $6.6 million 16.1% , in compensation and employee benefits due to both internal growth in compensation and staff as well as the addition of MutualBank employees. Also contributing to this increase was an increase of $3.9 million 35.2% , in processing expenses as we continue to invest in technology and infrastructure and as activity driven utilization fees for online and mobile banking and loan origination platforms has increased. Lastly, FDIC insurance premiums increased $2.2 million
The provision for income taxes decreased by $1.3 million 13.5% , to $8.5 million $9.8 million
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. As of September 30, 2020, Northwest operated 205 full-service community banking offices and eight free standing drive-through facilities in Pennsylvania , New York , Ohio and Indiana. Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com .
Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; (7) increased risk associated with commercial real-estate and business loans; and (8) the effect of any pandemic, including COVID-19, war or act of terrorism. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.
Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) (dollars in thousands, except per share amounts)
September 30, 2020
December 31, 2019
September 30, 2019
Assets
Cash and cash equivalents
$
656,749
60,846
107,602
Marketable securities available-for-sale (amortized cost of $1,385,835 , $815,495 and $801,465 , respectively)
1,409,150
819,901
807,823
Marketable securities held-to-maturity (fair value of $16,168 , $18,223 and $19,237 , respectively)
15,333
18,036
18,958
Total cash and cash equivalents and marketable securities
2,081,232
898,783
934,383
Residential mortgage loans held-for-sale
25,140
7,709
8,859
Residential mortgage loans
3,118,229
2,860,418
2,887,274
Home equity loans
1,484,365
1,342,918
1,328,173
Consumer loans
1,487,083
1,125,132
1,094,293
Commercial real estate loans
3,319,743
2,754,390
2,812,839
Commercial loans
1,347,292
718,107
720,579
Total loans receivable
10,781,852
8,808,674
8,852,017
Allowance for credit losses
(140,209)
(57,941)
(52,859)
Loans receivable, net
10,641,643
8,750,733
8,799,158
Federal Home Loan Bank stock, at cost
23,171
14,740
21,401
Accrued interest receivable
36,916
25,755
27,069
Real estate owned, net
2,575
950
1,237
Premises and equipment, net
166,919
147,409
148,796
Bank-owned life insurance
252,621
189,091
187,971
Goodwill
386,044
346,103
344,720
Other intangible assets, net
21,601
23,076
22,410
Other assets
176,083
97,268
93,329
Total assets
$
13,788,805
10,493,908
10,580,474
Liabilities and shareholders' equity
Liabilities
Noninterest-bearing demand deposits
$
2,641,234
1,609,653
1,905,650
Interest-bearing demand deposits
2,663,878
1,944,108
1,678,644
Money market deposit accounts
2,396,567
1,863,998
1,828,001
Savings deposits
2,022,918
1,604,838
1,635,754
Time deposits
1,732,022
1,569,410
1,633,451
Total deposits
11,456,619
8,592,007
8,681,500
Borrowed funds
398,216
246,336
255,257
Junior subordinated debentures
128,729
121,800
121,787
Advances by borrowers for taxes and insurance
29,755
44,556
24,331
Accrued interest payable
1,002
1,142
1,314
Other liabilities
227,253
134,782
144,515
Total liabilities
12,241,574
9,140,623
9,228,704
Shareholders' equity
Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares issued
—
—
—
Common stock, $0.01 par value: 500,000,000 shares authorized, 127,801,297, 106,859,088, and 106,658,067 shares issued and outstanding, respectively
1,278
1,069
1,067
Paid-in capital
1,023,827
805,750
801,382
Retained earnings
544,695
583,407
577,018
Accumulated other comprehensive loss
(22,569)
(36,941)
(27,697)
Total shareholders' equity
1,547,231
1,353,285
1,351,770
Total liabilities and shareholders' equity
$
13,788,805
10,493,908
10,580,474
Equity to assets
11.22
%
12.90
%
12.78
%
Tangible common equity to assets
8.52
%
9.72
%
9.64
%
Book value per share
$
12.11
12.66
12.67
Tangible book value per share
$
8.92
9.21
9.23
Closing market price per share
$
9.20
16.63
16.39
Full time equivalent employees
2,523
2,209
2,218
Number of banking offices
213
181
182
Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts)
Quarter ended
September 30, 2020
June 30, 2020
March 31, 2020
December 31, 2019
September 30, 2019
Interest income:
Loans receivable
$
107,241
103,012
94,973
97,866
101,091
Mortgage-backed securities
4,652
4,038
4,175
4,237
4,188
Taxable investment securities
427
439
648
683
884
Tax-free investment securities
655
564
185
201
224
FHLB dividends
218
309
262
262
307
Interest-earning deposits
221
185
135
169
172
Total interest income
113,414
108,547
100,378
103,418
106,866
Interest expense:
Deposits
8,443
9,336
11,403
12,893
13,694
Borrowed funds
1,437
1,133
1,747
1,580
2,236
Total interest expense
9,880
10,469
13,150
14,473
15,930
Net interest income
103,534
98,078
87,228
88,945
90,936
Provision for credit losses
6,818
51,750
27,637
8,223
3,302
Net interest income after provision for credit losses
96,716
46,328
59,591
80,722
87,634
Noninterest income:
Gain/(loss) on sale of investments
(12)
(8)
181
27
—
Gain on sale of loans
—
—
1,302
908
826
Service charges and fees
14,354
13,069
15,116
14,125
13,558
Trust and other financial services income
5,376
4,823
5,001
4,517
4,609
Insurance commission income
2,331
2,395
2,372
1,858
1,887
Gain/(loss) on real estate owned, net
(32)
(97)
(91)
86
(227)
Income from bank-owned life insurance
1,576
1,248
1,036
1,121
1,095
Mortgage banking income
11,055
12,022
1,194
1,494
1,921
Other operating income
2,022
2,044
1,865
4,077
2,500
Total noninterest income
36,670
35,496
27,976
28,213
26,169
Noninterest expense:
Compensation and employee benefits
47,371
40,049
42,746
42,074
40,816
Premises and occupancy costs
8,342
7,195
7,471
7,051
7,061
Office operations
4,626
3,711
3,382
4,097
3,197
Collections expense
1,264
644
474
566
747
Processing expenses
15,042
11,680
11,142
10,263
11,122
Marketing expenses
2,147
2,047
1,507
1,010
1,373
Federal deposit insurance premiums
1,498
1,618
—
—
(702)
Professional services
3,246
2,825
2,812
3,533
3,032
Amortization of intangible assets
1,781
1,760
1,651
1,634
1,702
Real estate owned expense
111
89
95
72
119
Acquisition/branch optimization expense
1,414
9,679
2,458
1,114
23
Other expenses
27
7,866
4,873
5,157
2,106
Total noninterest expense
86,869
89,163
78,611
76,571
70,596
Income/(loss) before income taxes
46,517
(7,339)
8,956
32,364
43,207
Income tax expense/(benefit)
8,467
(1,139)
1,017
6,773
9,793
Net income/(loss)
$
38,050
(6,200)
7,939
25,591
33,414
Basic earnings per share
$
0.30
(0.05)
0.08
0.24
0.32
Diluted earnings per share
$
0.30
(0.05)
0.07
0.24
0.31
Weighted average common shares outstanding - basic
126,855,810
121,480,563
105,882,553
105,627,194
105,517,707
Weighted average common shares outstanding - diluted
126,855,810
121,480,563
106,148,247
106,306,615
106,270,544
Annualized return on average equity
9.82
%
(1.63)
%
2.37
%
7.52
%
9.90
%
Annualized return on average assets
1.09
%
(0.18)
%
0.30
%
0.97
%
1.25
%
Annualized return on tangible common equity **
13.28
%
(2.22)
%
3.28
%
10.32
%
13.46
%
Efficiency ratio *
59.68
%
58.19
%
64.67
%
63.01
%
58.81
%
Annualized noninterest expense to average assets *
2.39
%
2.30
%
2.83
%
2.80
%
2.59
%
* Excludes acquisition/branch optimization expenses and amortization of intangible assets (non-GAAP).
** Excludes goodwill and other intangible assets (non-GAAP).
Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) (dollars in thousands, except per share amounts)
Nine months ended September 30,
2020
2019
Interest income:
Loans receivable
$
305,226
296,943
Mortgage-backed securities
12,865
12,433
Taxable investment securities
1,514
2,718
Tax-free investment securities
1,404
643
FHLB dividends
789
794
Interest-earning deposits
541
431
Total interest income
322,339
313,962
Interest expense:
Deposits
29,182
36,323
Borrowed funds
4,317
6,118
Total interest expense
33,499
42,441
Net interest income
288,840
271,521
Provision for credit losses
86,205
14,436
Net interest income after provision for credit losses
202,635
257,085
Noninterest income:
Gain on sale of investments
161
23
Gain on sale of loans
1,302
826
Service charges and fees
42,539
38,940
Trust and other financial services income
15,200
13,248
Insurance commission income
7,098
6,210
Loss on real estate owned, net
(220)
(139)
Income from bank-owned life insurance
3,860
3,297
Mortgage banking income
24,271
2,325
Other operating income
5,931
6,464
Total noninterest income
100,142
71,194
Noninterest expense:
Compensation and employee benefits
130,166
121,012
Premises and occupancy costs
23,008
21,666
Office operations
11,719
10,036
Collections expense
2,382
1,994
Processing expenses
37,864
32,190
Marketing expenses
5,701
5,988
Federal deposit insurance premiums
3,116
685
Professional services
8,883
8,754
Amortization of intangible assets
5,192
4,909
Real estate owned expense
295
406
Acquisition/branch optimization expense
13,551
3,054
Other expenses
12,766
8,838
Total noninterest expense
254,643
219,532
Income before income taxes
48,134
108,747
Income tax expense
8,345
23,906
Net income
$
39,789
84,841
Basic earnings per share
$
0.34
0.81
Diluted earnings per share
$
0.34
0.80
Weighted average common shares outstanding - basic
118,088,122
104,626,560
Weighted average common shares outstanding - diluted
118,088,122
105,681,615
Annualized return on average equity
3.33
%
8.65
%
Annualized return on average assets
0.42
%
1.10
%
Annualized return on tangible common equity **
4.66
%
11.52
%
Efficiency ratio *
60.65
%
61.73
%
Annualized noninterest expense to average assets *
2.50
%
2.75
%
* Excludes acquisition/branch optimization expenses and amortization of intangible assets (non-GAAP).
** Excludes goodwill and other 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,
2020
2019
2020
2019
Operating results (non-GAAP):
Net interest income
$
103,534
90,936
288,840
271,521
Provision for credit losses
5,349
3,302
21,551
14,436
Noninterest income
36,670
26,169
100,142
71,194
Noninterest expense
85,455
70,573
243,092
216,478
Income taxes
9,274
9,799
29,682
24,761
Net operating income (non-GAAP)
$
40,126
33,431
94,657
87,040
Diluted earnings per share (non-GAAP)
$
0.32
0.31
0.80
0.82
Average equity
$
1,540,934
1,339,339
1,596,252
1,312,002
Average assets
13,903,655
10,568,279
12,590,018
10,289,453
Annualized return on average equity (non-GAAP)
10.36
%
9.90
%
7.92
%
8.87
%
Annualized return on average assets (non-GAAP)
1.15
%
1.26
%
1.00
%
1.13
%
Reconciliation of net operating income to net income:
Net operating income (non-GAAP)
$
40,126
33,431
94,657
87,040
Non-GAAP adjustments, net of tax:
COVID-related provision **
(1,058)
—
(33,462)
—
CECL provision impact due to acquisition of MutualBank
—
—
(13,089)
—
PPP deferred origination costs
—
—
3,034
—
COVID-related off balance sheet provision **
—
—
(1,594)
—
Acquisition/branch optimization expense
(1,018)
(17)
(9,757)
(2,199)
Net income (GAAP)
$
38,050
33,414
39,789
84,841
Diluted earnings per share (GAAP)
$
0.30
0.31
0.34
0.80
Annualized return on average equity (GAAP)
9.82
%
9.90
%
3.33
%
8.65
%
Annualized return on average assets (GAAP)
1.09
%
1.25
%
0.42
%
1.10
%
*
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 estimated COVID-related provision, CECL provision related to the acquisition of MutualBank, PPP deferred origination costs, estimated COVID-related off balance sheet provision and acquisition/branch optimization expense. The net tax effect was calculated using statutory tax rates of approximately 28.0% . The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.
**
To arrive at the non-COVID related provision estimates, the Company applied Moody's forecast scenarios prior to the onset of COVID-19 to the Company's loan portfolio at September 30, 2020.
Northwest Bancshares, Inc. and Subsidiaries Regulatory Capital Requirements (Unaudited) (dollars in thousands)
At September 30, 2020
Actual
Minimum capital requirements (1)
Well capitalized requirements
Amount
Ratio
Amount
Ratio
Amount
Ratio
Total capital (to risk weighted assets)
Northwest Bancshares, Inc.
$
1,655,949
16.607
%
$
1,046,981
10.500
%
$
997,125
10.000
%
Northwest Bank
1,445,508
14.512
%
1,045,896
10.500
%
996,092
10.000
%
Tier 1 capital (to risk weighted assets)
Northwest Bancshares, Inc.
1,521,913
15.263
%
847,556
8.500
%
797,700
8.000
%
Northwest Bank
1,311,472
13.166
%
846,678
8.500
%
796,873
8.000
%
Common equity tier 1 capital (to risk weighted assets)
Northwest Bancshares, Inc.
1,273,896
12.776
%
697,988
7.000
%
648,131
6.500
%
Northwest Bank
1,311,472
13.166
%
697,264
7.000
%
647,460
6.500
%
Tier 1 capital (leverage) (to average assets)
Northwest Bancshares, Inc.
1,521,913
10.977
%
554,608
4.000
%
693,260
5.000
%
Northwest Bank
1,311,472
9.522
%
550,907
4.000
%
688,634
5.000
%
(1)
Amounts and ratios include the capital conservation buffer of 2.5% , which does not apply to Tier 1 capital to average assets (leverage ratio). For further information related to the capital conservation buffer, see "Item 1. Business - Supervision and Regulation" of our 2019 Annual Report on Form 10-K.
Northwest Bancshares, Inc. and Subsidiaries Marketable Securities (Unaudited) (dollars in thousands)
September 30, 2020
Marketable securities available-for-sale
Amortized cost
Gross unrealized holding gains
Gross unrealized holding losses
Fair value
Debt issued by the U.S. government and agencies:
Due after ten years
$
34,000
176
—
34,176
Debt issued by government sponsored enterprises:
Due in less than one year
35,731
284
—
36,015
Due in one year through five years
253
4
—
257
Due in five years through ten years
69,135
170
(178)
69,127
Municipal securities:
Due in less than one year
4,241
18
—
4,259
Due in one year through five years
3,343
73
(2)
3,414
Due in five years through ten years
11,077
312
—
11,389
Due after ten years
92,530
2,930
—
95,460
Residential mortgage-backed securities:
Fixed rate pass-through
356,898
6,467
(102)
363,263
Variable rate pass-through
15,798
538
(18)
16,318
Fixed rate agency CMOs
710,620
13,035
(722)
722,933
Variable rate agency CMOs
52,209
369
(39)
52,539
Total residential mortgage-backed securities
1,135,525
20,409
(881)
1,155,053
Total marketable securities available-for-sale
$
1,385,835
24,376
(1,061)
1,409,150
Marketable securities held-to-maturity
Residential mortgage-backed securities:
Fixed rate pass-through
$
1,823
128
—
1,951
Variable rate pass-through
970
33
—
1,003
Fixed rate agency CMOs
11,936
659
—
12,595
Variable rate agency CMOs
604
15
—
619
Total residential mortgage-backed securities
15,333
835
—
16,168
Total marketable securities held-to-maturity
$
15,333
835
—
16,168
Northwest Bancshares, Inc. and Subsidiaries Borrowed Funds (Unaudited) (dollars in thousands)
September 30, 2020
Amount
Average rate
Term notes payable to the Federal Home Loan Bank (FHLB):
Payable to FHLB of Pittsburgh
$
30,000
0.40
%
Payable to the FHLB of Indianapolis acquired from MutualBank
118,107
1.70
%
Total term notes payable to the FHLB
148,107
Collateralized borrowings, due within one year
126,832
0.19
%
Subordinated debentures, net of issuance costs
$
123,277
4.00
%
Total borrowed funds *
$
398,216
*
As of September 30, 2020, the Company had $3.8 billion of additional borrowing capacity available with the Federal Home Loan Bank of Pittsburgh, including a $250.0 million overnight line of credit, which had no balance, as well as $103.0 million of borrowing capacity available with the Federal Reserve Bank and $110.0 million with three correspondent banks.
Northwest Bancshares, Inc. and Subsidiaries Asset Quality (Unaudited) (dollars in thousands)
September 30, 2020
June 30, 2020
March 31, 2020
December 31, 2019
September 30, 2019
Nonaccrual loans current:
Residential mortgage loans
$
1,128
413
285
72
676
Home equity loans
366
481
592
197
607
Consumer loans
234
214
77
78
68
Commercial real estate loans
22,610
30,677
14,337
9,241
7,674
Commercial loans
6,488
6,551
3,514
3,424
3,777
Total nonaccrual loans current
$
30,826
38,336
18,805
13,012
12,802
Nonaccrual loans delinquent 30 days to 59 days:
Residential mortgage loans
$
60
61
691
674
40
Home equity loans
445
247
159
224
102
Consumer loans
230
335
143
121
246
Commercial real estate loans
692
2,372
496
196
925
Commercial loans
57
—
—
55
44
Total nonaccrual loans delinquent 30 days to 59 days
$
1,484
3,015
1,489
1,270
1,357
Nonaccrual loans delinquent 60 days to 89 days:
Residential mortgage loans
$
576
1,013
218
1,048
979
Home equity loans
618
960
539
689
436
Consumer loans
781
666
488
417
426
Commercial real estate loans
2,745
163
2,096
413
536
Commercial loans
15
768
37
341
—
Total nonaccrual loans delinquent 60 days to 89 days
$
4,735
3,570
3,378
2,908
2,377
Nonaccrual loans delinquent 90 days or more:
Residential mortgage loans
$
14,750
15,369
10,457
12,682
11,722
Home equity loans
7,845
7,060
5,816
5,635
5,966
Consumer loans
5,352
6,896
3,459
3,610
3,400
Commercial real estate loans
35,496
29,729
25,342
25,014
22,292
Commercial loans
6,310
11,535
16,685
4,739
5,741
Total nonaccrual loans delinquent 90 days or more
$
69,753
70,589
61,759
51,680
49,121
Total nonaccrual loans
$
106,798
115,510
85,431
68,870
65,657
Total nonaccrual loans
$
106,798
115,510
85,431
68,870
65,657
Loans 90 days past due and still accruing
495
77
31
32
85
Nonperforming loans
107,293
115,587
85,462
68,902
65,742
Real estate owned, net
2,575
1,897
1,075
950
1,237
Nonperforming assets
$
109,868
117,484
86,537
69,852
66,979
Nonaccrual troubled debt restructuring *
$
17,120
17,562
17,375
9,043
9,138
Accruing troubled debt restructuring
17,684
17,888
15,977
22,956
21,162
Total troubled debt restructuring
$
34,804
35,450
33,352
31,999
30,300
Nonperforming loans to total loans
1.00
%
1.06
%
0.97
%
0.78
%
0.74
%
Nonperforming assets to total assets
0.80
%
0.85
%
0.81
%
0.67
%
0.63
%
Allowance for credit losses to total loans
1.30
%
1.29
%
1.05
%
0.66
%
0.60
%
Allowance for total loans excluding PPP loan balances
1.36
%
1.36
%
N/A
N/A
N/A
Allowance for credit losses to nonperforming loans
130.68
%
121.63
%
108.70
%
84.09
%
80.40
%
*
Amounts included in nonperforming loans above.
Northwest Bancshares, Inc. and Subsidiaries Loans by Credit Quality Indicators (Unaudited) (dollars in thousands)
At September 30, 2020
Pass
Special mention *
Substandard **
Doubtful ***
Loss
Loans receivable
Personal Banking:
Residential mortgage loans
$
3,117,442
—
25,927
—
—
3,143,369
Home equity loans
1,471,919
—
12,446
—
—
1,484,365
Consumer loans
1,478,109
—
8,974
—
—
1,487,083
Total Personal Banking
6,067,470
—
47,347
—
—
6,114,817
Commercial Banking:
Commercial real estate loans
2,850,611
110,073
359,059
—
—
3,319,743
Commercial loans
1,255,255
40,631
51,406
—
—
1,347,292
Total Commercial Banking
4,105,866
150,704
410,465
—
—
4,667,035
Total loans
$
10,173,336
150,704
457,812
—
—
10,781,852
At June 30, 2020
Personal Banking:
Residential mortgage loans
$
3,196,304
—
26,451
—
—
3,222,755
Home equity loans
1,438,339
—
12,031
—
—
1,450,370
Consumer loans
1,508,129
—
9,990
—
—
1,518,119
Total Personal Banking
6,142,772
—
48,472
—
—
6,191,244
Commercial Banking:
Commercial real estate loans
3,034,984
72,755
199,993
1,092
—
3,308,824
Commercial loans
1,270,279
41,458
42,692
4,290
—
1,358,719
Total Commercial Banking
4,305,263
114,213
242,685
5,382
—
4,667,543
Total loans
$
10,448,035
114,213
291,157
5,382
—
10,858,787
At March 31, 2020
Personal Banking:
Residential mortgage loans
$
2,830,596
—
7,690
—
—
2,838,286
Home equity loans
1,345,052
—
8,211
—
—
1,353,263
Consumer loans
1,174,067
—
3,988
—
—
1,178,055
Total Personal Banking
5,349,715
—
19,889
—
—
5,369,604
Commercial Banking:
Commercial real estate loans
2,537,736
73,967
143,765
—
—
2,755,468
Commercial loans
618,267
43,071
50,464
—
—
711,802
Total Commercial Banking
3,156,003
117,038
194,229
—
—
3,467,270
Total loans
$
8,505,718
117,038
214,118
—
—
8,836,874
At December 31, 2019
Personal Banking:
Residential mortgage loans
$
2,858,582
—
9,545
—
—
2,868,127
Home equity loans
1,336,111
—
6,807
—
—
1,342,918
Consumer loans
1,120,732
—
4,400
—
—
1,125,132
Total Personal Banking
5,315,425
—
20,752
—
—
5,336,177
Commercial Banking:
Commercial real estate loans
2,538,816
80,570
135,004
—
—
2,754,390
Commercial loans
616,983
42,380
58,744
—
—
718,107
Total Commercial Banking
3,155,799
122,950
193,748
—
—
3,472,497
Total loans
$
8,471,224
122,950
214,500
—
—
8,808,674
At September 30, 2019
Personal Banking:
Residential mortgage loans
$
2,887,077
—
9,056
—
—
2,896,133
Home equity loans
1,320,930
—
7,243
—
—
1,328,173
Consumer loans
1,090,030
—
4,263
—
—
1,094,293
Total Personal Banking
5,298,037
—
20,562
—
—
5,318,599
Commercial Banking:
Commercial real estate loans
2,601,025
69,380
142,253
181
—
2,812,839
Commercial loans
639,998
37,666
42,800
115
—
720,579
Total Commercial Banking
3,241,023
107,046
185,053
296
—
3,533,418
Total loans
$
8,539,060
107,046
205,615
296
—
8,852,017
*
Includes $34.7 million , $37.4 million , $13.1 million , $10.3 million , and $8.7 million of acquired loans at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively.
**
Includes $129.2 million , $108.2 million , $56.8 million , $53.1 million , and $46.6 million of acquired loans at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, respectively.
***
Includes $1.1 million of acquired loans at June 30, 2020.
Northwest Bancshares, Inc. and Subsidiaries Loan Delinquency (Unaudited) (dollars in thousands)
September 30, 2020
*
June 30, 2020
*
March 31, 2020
*
December 31, 2019
*
September 30, 2019
*
(Number of loans and dollar amount of loans)
Loans delinquent 30 days to 59 days:
Residential mortgage loans
17
$
736
—
%
15
$
629
—
%
358
$
32,755
1.2
%
292
$
23,296
0.8
%
21
$
1,236
—
%
Home equity loans
129
4,984
0.3
%
118
4,569
0.3
%
190
7,061
0.5
%
173
6,469
0.5
%
149
4,774
0.4
%
Consumer loans
1,078
8,586
0.6
%
629
7,199
0.5
%
953
8,774
0.7
%
960
9,208
0.8
%
864
7,597
0.7
%
Commercial real estate loans
28
5,090
0.2
%
46
14,177
0.4
%
58
12,895
0.5
%
43
7,921
0.3
%
27
5,308
0.2
%
Commercial loans
19
1,797
0.1
%
12
1,242
0.1
%
35
7,545
1.1
%
32
1,187
0.2
%
20
362
0.1
%
Total loans delinquent 30 days to 59 days
1,271
$
21,193
0.2
%
820
$
27,816
0.3
%
1,594
$
69,030
0.8
%
1,500
$
48,081
0.5
%
1,081
$
19,277
0.2
%
Loans delinquent 60 days to 89 days:
Residential mortgage loans
65
$
4,788
0.2
%
64
$
5,364
0.2
%
11
$
511
—
%
67
$
5,693
0.2
%
95
$
5,320
0.2
%
Home equity loans
56
1,860
0.1
%
59
2,326
0.2
%
65
2,652
0.2
%
66
2,405
0.2
%
66
2,103
0.2
%
Consumer loans
323
3,049
0.2
%
258
2,916
0.2
%
265
2,610
0.2
%
395
3,302
0.3
%
288
2,632
0.2
%
Commercial real estate loans
14
4,212
0.1
%
18
3,913
0.1
%
12
2,981
0.1
%
19
1,690
0.1
%
15
1,893
0.1
%
Commercial loans
7
357
—
%
15
1,151
0.1
%
10
309
—
%
17
6,403
0.9
%
10
589
0.1
%
Total loans delinquent 60 days to 89 days
465
$
14,266
0.1
%
414
$
15,670
0.1
%
363
$
9,063
0.1
%
564
$
19,493
0.2
%
474
$
12,537
0.1
%
Loans delinquent 90 days or more: **
Residential mortgage loans
168
$
14,750
0.5
%
185
$
15,369
0.5
%
129
$
10,457
0.4
%
141
$
12,775
0.4
%
138
$
11,816
0.4
%
Home equity loans
193
7,845
0.5
%
182
7,060
0.5
%
152
5,816
0.4
%
159
5,688
0.4
%
157
5,966
0.4
%
Consumer loans
696
5,847
0.4
%
709
6,896
0.5
%
445
3,459
0.3
%
590
3,611
0.3
%
398
3,401
0.3
%
Commercial real estate loans
136
35,496
1.1
%
149
29,729
0.9
%
139
25,342
0.9
%
129
25,014
0.9
%
118
22,292
0.8
%
Commercial loans
34
6,310
0.5
%
47
11,535
0.8
%
51
16,685
2.3
%
37
4,739
0.7
%
40
5,741
0.8
%
Total loans delinquent 90 days or more
1,227
$
70,248
0.7
%
1,272
$
70,589
0.7
%
916
$
61,759
0.7
%
1,056
$
51,827
0.6
%
851
$
49,216
0.6
%
Total loans delinquent
2,963
$
105,707
1.0
%
2,506
$
114,075
1.1
%
2,873
$
139,852
1.6
%
3,120
$
119,401
1.4
%
2,406
$
81,030
0.9
%
*
Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
**
Includes purchased credit deteriorated loans of $20.3 million , $18.0 million , and $298,000 at September 30, 2020, June 30, 2020, and March 31, 2020, respectively, and purchased credit impaired loans of $147,000 and $95,000 at December 31, 2019, and September 30, 2019, respectively.
Northwest Bancshares, Inc. and Subsidiaries Analysis of Loan Portfolio by Loan Sector (Unaudited) (dollars in thousands)
Loans outstanding
The following table provides delinquency information for various loan sectors in our portfolio that are potentially vulnerable to the COVID-19 pandemic impacts at September 30, 2020:
At September 30, 2020
30-59 days delinquent
*
60-89 days delinquent
*
90 days or greater delinquent
*
Total delinquent
*
Current
*
Total loans receivable
*
Restaurants/bars
$
27
—
%
$
623
—
%
$
1,012
—
%
$
1,662
—
%
$
97,009
0.9
%
$
98,671
0.9
%
Hotels/hospitality
3
—
%
1,083
—
%
6,751
0.1
%
7,837
0.1
%
174,687
1.6
%
182,524
1.7
%
Gyms and fitness
—
—
%
—
—
%
5
—
%
5
—
%
5,302
—
%
5,307
—
%
Transportation
44
—
%
19
—
%
2,313
—
%
2,376
—
%
77,371
0.7
%
79,747
0.7
%
Oil and gas
7
—
%
—
—
%
23
—
%
30
—
%
11,385
0.1
%
11,415
0.1
%
Residential care facilities
—
—
%
—
—
%
—
—
%
—
—
%
233,248
2.2
%
233,248
2.2
%
Retail buildings
222
—
%
263
—
%
850
—
%
1,335
—
%
448,829
4.2
%
450,164
4.2
%
Education/student housing
—
—
%
1,427
—
%
503
—
%
1,930
—
%
144,214
1.3
%
146,144
1.4
%
Construction/development:
Education/student housing
—
—
%
—
—
%
—
—
%
—
—
%
48,175
0.4
%
48,175
0.4
%
Hotels/hospitality
—
—
%
—
—
%
—
—
%
—
—
%
25,559
0.2
%
25,559
0.2
%
Residential care facilities
—
—
%
—
—
%
—
—
%
—
—
%
36,667
0.3
%
36,667
0.3
%
All other construction/development
2,139
—
%
—
—
%
5,476
0.1
%
7,615
0.1
%
182,201
1.7
%
189,816
1.8
%
All other sectors
18,751
0.2
%
10,851
0.1
%
53,315
0.5
%
82,917
0.8
%
9,191,498
85.2
%
9,274,415
86.0
%
Total loans
$
21,193
0.2
%
$
14,266
0.1
%
$
70,248
0.7
%
$
105,707
1.0
%
$
10,676,145
99.0
%
$
10,781,852
100.0
%
*
Percent of total loans outstanding.
Loan deferrals
The following table represents loans that entered into and are currently in a deferment offered by the Company to aid customers in the COVID-19 pandemic as of September 30, 2020. Of these loan deferrals, 297 borrowers applied for and received PPP loans totaling approximately $50.8 million :
Balance as of June 30, 2020
Loans returned to full payment status, net of payments
Loans moved into a second deferral
New loans entered into first deferral
Balance as of September 30, 2020
Number of loans
Outstanding principal balance
*
Number of loans
Outstanding principal balance
Number of loans
Outstanding principal balance
Number of loans
Outstanding principal balance
Number of loans
Outstanding principal balance
*
Residential mortgage loans
936
$
131,567
4.1
%
871
$
121,725
65
$
9,842
46
$
6,125
111
$
15,967
0.5
%
Home equity loans
652
42,836
3.0
%
625
40,606
27
2,230
21
1,409
48
3,639
0.2
%
Consumer loans
2,455
49,374
3.3
%
2,399
48,068
56
1,306
67
1,042
123
2,348
0.2
%
Commercial real estate loans
1,511
967,340
29.2
%
1,434
794,288
77
173,052
17
10,609
94
183,661
5.5
%
Commercial loans
652
120,999
8.9
%
635
119,029
17
1,970
11
5,115
28
7,085
0.5
%
Total loans
6,206
$
1,312,116
12.1
%
5,964
$
1,123,716
242
$
188,400
162
$
24,300
404
$
212,700
**
2.0
%
*
Percent of total loans outstanding by the respective total amount of that type of loan.
**
As of September 30, 2020, $177.9 million of loan deferrals expire in Q4 2020 and $34.8 million of loan deferrals expire in Q1 2021. In addition, of the $212,700 t otal loan deferrals, $153.2 million are in the hospitality industry.
Northwest Bancshares, Inc. and Subsidiaries Allowance for Credit Losses (Unaudited) (dollars in thousands)
Quarter ended
September 30, 2020
June 30, 2020
March 31, 2020
December 31, 2019
September 30, 2019
Beginning balance
$
140,586
92,897
57,941
52,859
53,107
CECL adoption
—
—
10,792
—
—
Initial allowance on loans purchased with credit deterioration
—
8,845
—
—
—
Provision
6,818
51,750
27,637
8,223
3,302
Charge-offs residential mortgage
(129)
(38)
(343)
(222)
(190)
Charge-offs home equity
(88)
(173)
(289)
(113)
(466)
Charge-offs consumer
(3,356)
(3,191)
(3,488)
(3,142)
(3,078)
Charge-offs commercial real estate
(532)
(690)
(331)
(107)
(389)
Charge-offs commercial
(4,892)
(10,349)
(815)
(1,143)
(1,151)
Recoveries
1,802
1,535
1,793
1,586
1,724
Ending balance
$
140,209
140,586
92,897
57,941
52,859
Net charge-offs to average loans, annualized
0.27
%
0.51
%
0.16
%
0.14
%
0.16
%
Nine months ended September 30,
2020
2019
Beginning balance
$
57,941
55,214
CECL adoption
10,792
—
Initial allowance on loans purchased with credit deterioration
8,845
—
Provision
86,205
14,436
Charge-offs residential mortgage
(510)
(944)
Charge-offs home equity
(550)
(1,008)
Charge-offs consumer
(10,035)
(8,665)
Charge-offs commercial real estate
(1,553)
(5,360)
Charge-offs commercial
(16,056)
(5,508)
Recoveries
5,130
4,694
Ending balance
$
140,209
52,859
Net charge-offs to average loans, annualized
0.32
%
0.26
%
September 30, 2020
Originated loans
Acquired loans
Total loans
Balance
Reserve
Balance
Reserve
Balance
Reserve
Residential mortgage loans
$
2,794,489
10,244
348,880
1,792
3,143,369
12,036
Home equity loans
1,169,709
7,488
314,656
2,097
1,484,365
9,585
Consumer loans
1,242,220
16,433
244,863
3,427
1,487,083
19,860
Personal Banking Loans
5,206,418
34,165
908,399
7,316
6,114,817
41,481
Commercial real estate loans
2,488,967
66,960
830,776
20,020
3,319,743
86,980
Commercial loans
1,147,492
8,455
199,800
3,293
1,347,292
11,748
Commercial Banking Loans
3,636,459
75,415
1,030,576
23,313
4,667,035
98,728
Total Loans
$
8,842,877
109,580
1,938,975
30,629
10,781,852
140,209
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, 2020
June 30, 2020
March 31, 2020
December 31, 2019
September 30, 2019
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
$
3,176,436
28,769
3.62
%
$
3,092,392
29,019
3.75
%
$
2,845,483
28,062
3.94
%
$
2,847,932
28,011
3.93
%
$
2,894,716
28,991
4.01
%
Home equity loans
1,479,429
13,732
3.69
%
1,415,091
13,806
3.92
%
1,345,059
14,801
4.43
%
1,333,748
15,354
4.57
%
1,316,033
16,131
4.86
%
Consumer loans
1,437,828
15,851
4.39
%
1,375,130
14,993
4.39
%
1,123,336
12,160
4.35
%
1,073,565
12,016
4.44
%
1,028,579
11,916
4.60
%
Commercial real estate loans
3,306,386
36,887
4.37
%
3,156,749
34,595
4.34
%
2,747,419
31,437
4.53
%
2,741,687
32,985
4.71
%
2,796,351
34,441
4.82
%
Commercial loans
1,377,223
12,603
3.58
%
1,161,228
11,269
3.84
%
712,621
8,856
4.92
%
717,438
9,841
5.37
%
710,847
9,949
5.48
%
Total loans receivable (a) (b) (d)
10,777,302
107,842
3.98
%
10,200,590
103,682
4.09
%
8,773,918
95,316
4.37
%
8,714,370
98,207
4.47
%
8,746,526
101,428
4.60
%
Mortgage-backed securities (c)
1,004,803
4,651
1.85
%
714,657
4,038
2.26
%
668,470
4,175
2.50
%
667,910
4,237
2.54
%
641,085
4,188
2.61
%
Investment securities (c) (d)
216,081
1,336
2.47
%
170,309
1,244
2.92
%
144,152
881
2.44
%
151,289
938
2.48
%
218,753
1,168
2.14
%
FHLB stock, at cost
25,595
218
3.39
%
22,192
309
5.60
%
15,931
262
6.61
%
13,400
262
7.76
%
16,302
307
7.47
%
Other interest-earning deposits
791,601
221
0.11
%
623,870
185
0.12
%
34,697
135
1.54
%
31,624
169
2.09
%
28,832
172
2.33
%
Total interest-earning assets
12,815,382
114,268
3.55
%
11,731,618
109,458
3.75
%
9,637,168
100,769
4.21
%
9,578,593
103,813
4.30
%
9,651,498
107,263
4.41
%
Noninterest-earning assets (e)
1,088,273
1,858,513
960,303
869,117
916,781
Total assets
$
13,903,655
$
13,590,131
$
10,597,471
$
10,447,710
$
10,568,279
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings deposits
$
2,015,604
648
0.13
%
$
1,884,202
648
0.14
%
$
1,611,111
727
0.18
%
$
1,615,996
792
0.19
%
$
1,658,670
788
0.19
%
Interest-bearing demand deposits
2,680,591
763
0.11
%
2,428,060
812
0.13
%
1,915,871
1,307
0.27
%
1,769,623
1,570
0.35
%
1,655,952
1,711
0.41
%
Money market deposit accounts
2,347,097
1,347
0.23
%
2,204,810
1,600
0.29
%
1,921,243
3,088
0.65
%
1,845,535
3,226
0.69
%
1,798,175
3,772
0.83
%
Time deposits
1,782,350
5,685
1.27
%
1,761,260
6,276
1.43
%
1,528,891
6,281
1.65
%
1,607,992
7,305
1.80
%
1,618,591
7,423
1.82
%
Borrowed funds (f)
420,715
717
0.68
%
371,700
296
0.32
%
240,118
709
1.19
%
177,670
444
0.99
%
243,960
1,002
1.63
%
Junior subordinated debentures
128,658
720
2.19
%
127,472
837
2.60
%
121,809
1,038
3.37
%
121,796
1,136
3.65
%
121,767
1,235
3.97
%
Total interest-bearing liabilities
9,375,015
9,880
0.42
%
8,777,504
10,469
0.48
%
7,339,043
13,150
0.72
%
7,138,612
14,473
0.80
%
7,097,115
15,931
0.89
%
Noninterest-bearing demand deposits (g)
2,703,266
2,401,368
1,640,180
1,800,861
1,915,392
Noninterest-bearing liabilities
284,440
882,391
268,139
158,434
216,433
Total liabilities
12,362,721
12,061,263
9,247,362
9,097,907
9,228,940
Shareholders' equity
1,540,934
1,528,868
1,350,109
1,349,803
1,339,339
Total liabilities and shareholders' equity
$
13,903,655
$
13,590,131
$
10,597,471
$
10,447,710
$
10,568,279
Net interest income/Interest rate spread
104,388
3.13
%
98,989
3.27
%
87,619
3.48
%
89,340
3.50
%
91,332
3.52
%
Net interest-earning assets/Net interest margin
$
3,440,367
3.26
%
$
2,954,114
3.38
%
$
2,298,125
3.66
%
$
2,439,981
3.73
%
$
2,554,383
3.79
%
Ratio of interest-earning assets to interest-bearing liabilities
1.37X
1.34X
1.31X
1.34X
1.36X
(a)
Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
(b)
Interest income includes accretion/amortization of deferred loan fees/expenses, which was not material.
(c)
Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
(d)
Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis.
(e)
Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
(f)
Average balances include FHLB borrowings, collateralized borrowings and subordinated debt.
(g)
Average cost of deposits were 0.29% , 0.35% , 0.53% , 0.59% , and 0.63% , respectively.
(h)
Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 3.96% , 4.06% , 4.35% , 4.46% , and 4.59% , respectively, Investment securities - 2.00% , 2.36% , 2.31% , 2.34% , and 2.03% , respectively, Interest-earning assets - 3.52% 3.72% , 4.19% , 4.28% , and 4.39% , respectively. GAAP basis net interest rate spreads were 3.10% , 3.24% , 3.47% , 3.48% , and 3.50% , respectively, and GAAP basis net interest margins were 3.23% , 3.34% , 3.64% , 3.71% , and 3.77% , respectively.
Northwest Bancshares, Inc. and Subsidiaries
Average Balance Sheet (Unaudited) (in thousands)
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
Nine months ended September 30,
2020
2019
Average balance
Interest
Avg. yield/ cost (h)
Average balance
Interest
Avg. yield/ cost (h)
Assets
Interest-earning assets:
Residential mortgage loans
$
3,038,712
85,850
3.77
%
$
2,865,091
87,572
4.08
%
Home equity loans
1,424,580
42,340
3.97
%
1,300,537
48,868
5.02
%
Consumer loans
1,302,282
43,004
4.41
%
949,303
32,844
4.60
%
Commercial real estate loans
3,071,047
102,918
4.40
%
2,720,435
99,930
4.84
%
Commercial loans
1,084,739
32,727
3.96
%
665,867
28,724
5.69
%
Loans receivable (a) (b) (d)
9,921,360
306,839
4.13
%
8,501,233
297,938
4.69
%
Mortgage-backed securities (c)
796,739
12,865
2.15
%
630,279
12,433
2.63
%
Investment securities (c) (d)
176,991
3,461
2.61
%
224,111
3,532
2.10
%
FHLB stock, at cost
21,255
789
4.96
%
14,840
794
7.15
%
Other interest-earning deposits
483,390
541
0.15
%
20,531
431
2.77
%
Total interest-earning assets
11,399,735
324,495
3.80
%
9,390,994
315,128
4.49
%
Noninterest-earning assets (e)
1,190,283
898,459
Total assets
$
12,590,018
$
10,289,453
Liabilities and shareholders' equity
Interest-bearing liabilities:
Savings deposits
$
1,837,624
2,023
0.15
%
$
1,668,806
2,323
0.19
%
Interest-bearing demand deposits
2,342,748
2,882
0.16
%
1,611,554
4,442
0.37
%
Money market deposit accounts
2,157,212
6,035
0.37
%
1,756,251
9,784
0.74
%
Time deposits
1,691,168
18,243
1.44
%
1,538,113
19,774
1.72
%
Borrowed funds (f)
344,457
1,721
0.67
%
216,160
2,421
1.50
%
Junior subordinated debentures
125,988
2,595
2.71
%
119,417
3,698
4.08
%
Total interest-bearing liabilities
8,499,197
33,499
0.53
%
6,910,301
42,442
0.82
%
Noninterest-bearing demand deposits (g)
2,250,864
1,847,344
Noninterest-bearing liabilities
243,705
219,806
Total liabilities
10,993,766
8,977,451
Shareholders' equity
1,596,252
1,312,002
Total liabilities and shareholders' equity
$
12,590,018
$
10,289,453
Net interest income/Interest rate spread
290,996
3.27
%
272,686
3.67
%
Net interest-earning assets/Net interest margin
$
2,900,538
3.40
%
$
2,480,693
3.87
%
Ratio of interest-earning assets to interest-bearing liabilities
1.34X
1.36X
(a)
Average gross loans includes loans held as available-for-sale and loans placed on nonaccrual status.
(b)
Interest income includes accretion/amortization of deferred loan fees/expenses, which were not material.
(c)
Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
(d)
Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis.
(e)
Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
(f)
Average balances include FHLB borrowings, collateralized borrowings and subordinated debt.
(g)
Average cost of deposits were 0.38% and 0.58% , respectively.
(h)
Shown on a FTE basis. GAAP basis yields were: Loans — 4.11% and 4.67% , respectively; Investment securities — 2.20% and 2.00% , respectively; Interest-earning assets — 3.78% and 4.47% , respectively. GAAP basis net interest rate spreads were 3.25% and 3.65% , respectively; and GAAP basis net interest margins were 3.38% and 3.86% , respectively.
http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-third-quarter-2020-earnings-and-quarterly-dividend-301158894.html
SOURCE Northwest Bancshares, Inc.
