Northwest Bancshares, Inc. Announces Second Quarter 2022 Earnings and Quarterly Dividend
Northwest Bancshares, Inc. Announces Second Quarter 2022 Earnings and Quarterly Dividend
PR Newswire
COLUMBUS, Ohio, July 25, 2022
COLUMBUS, Ohio, July 25, 2022 /PRNewswire/ — Northwest Bancshares, Inc., (the “Company”), (NasdaqGS: NWBI) announced…
Northwest Bancshares, Inc. Announces Second Quarter 2022 Earnings and Quarterly Dividend
PR Newswire
COLUMBUS, Ohio, July 25, 2022
COLUMBUS, Ohio, July 25, 2022 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended June 30, 2022 of $33.4 million, or $0.26 per diluted share. This represents a decrease of $15.5 million, or 31.7%, compared to the same quarter last year, when net income was $49.0 million, or $0.38 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended June 30, 2022 were 8.90% and 0.94% compared to 12.58% and 1.37% for the same quarter last year. Prior year earnings were enhanced by a $25.3 million pre-tax gain on the sale of the Northwest insurance line of business.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on August 15, 2022 to shareholders of record as of August 4, 2022. This is the 111th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of June 30, 2022, this represents an annualized dividend yield of approximately 6.0%.
During the second quarter, the Company announced the unfortunate passing of Chairman, President, and Chief Executive Officer, Ronald J. Seiffert, from natural causes. Subsequently, as announced on May 25, 2022, the Northwest Bancshares and Northwest Bank Boards of Directors named the Company's Chief Financial Officer, William W. Harvey Jr,. as interim President and Chief Executive Officer and the Company's Lead Director, Timothy B. Fannin, as interim Chairman of the Board.
Mr. Harvey commented, "Everyone in the Northwest family is deeply saddened by the unexpected passing of Ron. Ron was such a strong leader during his time at Northwest and he positioned us well for the future. We are committed to carrying out his vision and strategic direction for the company."
In relation to the quarterly results, Mr. Harvey noted, "We are pleased with the loan growth momentum generated during the quarter with organic loan growth of approximately $200.0 million, or almost 2.0%, augmented by the purchase of a $50.0 million one-to-four family jumbo mortgage loan portfolio and a $43.0 million small business equipment finance pool. Also, during the quarter our net interest margin expanded by 32bp as a result of both an increase in market interest rates and the deployment of excess liquidity into higher yielding interest-earning assets."
Mr. Harvey continued, "Asset quality metrics continue to improve with nonperforming and classified assets dropping to $100.0 million and $277.4 million, respectively, and total delinquency and net charge-offs falling to pre-pandemic levels. Outside of an increase in other noninterest expense related primarily to an additional $3.4 million reserve for unfunded loan commitments, we continue to see a favorable trend in expense management over the past five quarters."
Net interest income increased by $4.5 million, or 4.7%, to $100.3 million for the quarter ended June 30, 2022, from $95.7 million for the quarter ended June 30, 2021, due primarily to a $1.5 million increase in both interest income on mortgage-backed securities and interest income on interest-earning deposits. The increase in interest income on mortgage-backed securities was due to an increase of $196.1 million, or 11.2%, in the average balance of mortgage-backed securities in addition to an increase in the yield on mortgage-backed securities to 1.47% for the quarter ended June 30, 2022 from 1.29% for the quarter ended June 30, 2021. The increase in interest income on interest-earning deposits was due to an increase of $35.4 million, or 4.4%, in the average balance of interest-earning deposits in addition to an increase in the yield on interest-earning deposits to 0.79% for the quarter ended June 30, 2022 from 0.09% for the quarter ended June 30, 2021. Also contributing to the increase in net interest income was a decrease in interest expense on deposits of $1.4 million, or 30.0%, primarily due to a decrease in our cost of our interest-bearing liabilities to 0.24% for the quarter ended June 30, 2022, from 0.29% for the quarter ended June 30, 2021. The net effect of the changes in interest rates and average balances was an increase in the Company's net interest margin to 3.07% for the quarter ended June 30, 2022, from 2.91% for the same quarter last year.
The Company continued to experience improvement in asset quality as classified loans decreased by $175.7 million, or 38.8%, to $277.4 million, or 2.7% of total loans, at June 30, 2022, from $453.1 million, or 4.4% of total loans, at June 30, 2021. Total delinquent loans also decreased to $51.1 million, or 0.49% of loans receivable, at June 30, 2022 from $68.9 million, or 0.70% of loans receivable, at June 30, 2021. In addition, annualized net charge-offs were 0.14% during the current quarter compared to 0.26% during the same quarter last year. As the result, the provision for credit losses during the current quarter remained historically low at just $2.6 million.
Noninterest income decreased by $24.3 million, or 44.3%, to $30.4 million for the quarter ended June 30, 2022, from $54.7 million for the quarter ended June 30, 2021. This decrease was primarily due to the sale of our insurance business in the second quarter of 2021, for a pre-tax gain of $25.3 million, which also resulted in a decrease in insurance commission income of $1.0 million, or 100.0% from the quarter ended June 30, 2021. In addition, mortgage banking income decreased by $1.7 million, or 43.4%, to $2.2 million for the quarter ended June 30, 2022 from $3.8 million for the quarter ended June 30, 2021. This decrease reflects the impact of less favorable pricing in the secondary market, due primarily to the volatile interest rate environment. Offsetting these decreases was an increase in other operating income of $2.2 million, or 83.6%, to $4.9 million for the quarter ended June 30, 2022 from $2.6 million for the quarter ended June 30, 2021 due to an increase in swap fee income as well as a gain of approximately $1.0 million from the sale of branch buildings associated with the previously announced consolidation of 20 branch office facilities.
Noninterest expense decreased by $1.5 million, or 1.8%, to $84.8 million for the quarter ended June 30, 2022 from $86.3 million for the quarter ended June 30, 2021. This decrease primarily resulted from a $2.2 million, or 14.5%, decrease in processing expense to $12.9 million for the quarter ended June 30, 2022 from $15.2 million for the quarter ended June 30, 2021 due to the investment in our technology and infrastructure during the prior year. Also contributing to this favorable variance was an $898,000, or 21.2%, decrease in professional services to $3.3 million for the quarter ended June 30, 2022 from $4.2 million for the quarter ended June 30, 2021 due to the use of third-party experts to assist with our digital strategy rollout in the prior year. Compensation and employee benefits also decreased by $821,000, or 1.7%, to $48.1 million for the quarter ended June 30, 2022 from $48.9 million for the quarter ended June 30, 2021, despite recognizing approximately $1.4 million of additional expenses related to the acceleration of compensation and stock benefits upon Mr. Seiffert's passing. The decrease in compensation and employee benefits was driven primarily by the branch consolidations completed in April. Partially offsetting these decreases was an increase in other expenses of $3.8 million to $5.2 million for the quarter ended June 30, 2022 from $1.4 million for the quarter ended June 30, 2021 due to an increase in our unfunded loan loss reserve associated with the origination of loans with current off balance sheet exposure.
The provision for income taxes decreased by $5.3 million, or 34.9%, to $9.9 million for the quarter ended June 30, 2022, from $15.1 million for the quarter ended June 30, 2021, due primarily to a decrease in income before taxes in the current year.
Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank. Founded in 1896 and headquartered in Warren, Pennsylvania, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of June 30, 2022, Northwest operated 142 full-service community banking offices and eight free standing drive-through facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.
Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; (7) increased risk associated with commercial real-estate and business loans; and (8) the effect of any pandemic, including COVID-19, war or act of terrorism. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.
Northwest Bancshares, Inc. and Subsidiaries | |||||||
Consolidated Statements of Financial Condition (Unaudited) | |||||||
(dollars in thousands, except per share amounts) | |||||||
June 30, 2022 | December 31, 2021 | June 30, 2021 | |||||
Assets | |||||||
Cash and cash equivalents | $ 504,532 | 1,279,259 | 857,152 | ||||
Marketable securities available-for-sale (amortized cost of $1,516,743, $1,565,002 and $1,593,813, |
1,364,743 |
1,548,592 |
1,599,024 | ||||
Marketable securities held-to-maturity (fair value of $835,565, $751,513 and $632,620, respectively) | 923,180 | 768,154 | 639,424 | ||||
Total cash and cash equivalents and marketable securities | 2,792,455 | 3,596,005 | 3,095,600 | ||||
Residential mortgage loans held-for-sale | 31,153 | 25,056 | 29,055 | ||||
Residential mortgage loans | 3,255,622 | 2,969,564 | 2,925,496 | ||||
Home equity loans | 1,280,492 | 1,319,931 | 1,376,228 | ||||
Consumer loans | 2,002,545 | 1,838,748 | 1,745,231 | ||||
Commercial real estate loans | 2,876,176 | 3,015,484 | 3,215,189 | ||||
Commercial loans | 986,836 | 847,609 | 1,018,781 | ||||
Total loans receivable | 10,432,824 | 10,016,392 | 10,309,980 | ||||
Allowance for credit losses | (98,355) | (102,241) | (117,330) | ||||
Loans receivable, net | 10,334,469 | 9,914,151 | 10,192,650 | ||||
FHLB stock, at cost | 13,362 | 14,184 | 23,287 | ||||
Accrued interest receivable | 27,708 | 25,599 | 27,585 | ||||
Real estate owned, net | 1,205 | 873 | 1,353 | ||||
Premises and equipment, net | 146,869 | 156,524 | 156,076 | ||||
Bank-owned life insurance | 254,109 | 256,213 | 253,539 | ||||
Goodwill | 380,997 | 380,997 | 380,997 | ||||
Other intangible assets, net | 10,538 | 12,836 | 15,362 | ||||
Other assets | 192,983 | 144,126 | 151,607 | ||||
Total assets | $ 14,154,695 | 14,501,508 | 14,298,056 | ||||
Liabilities and shareholders' equity | |||||||
Liabilities | |||||||
Noninterest-bearing demand deposits | $ 3,058,249 | 3,099,526 | 3,002,632 | ||||
Interest-bearing demand deposits | 2,858,691 | 2,940,442 | 2,824,219 | ||||
Money market deposit accounts | 2,631,712 | 2,629,882 | 2,538,607 | ||||
Savings deposits | 2,362,725 | 2,303,760 | 2,262,152 | ||||
Time deposits | 1,155,878 | 1,327,555 | 1,463,098 | ||||
Total deposits | 12,067,255 | 12,301,165 | 12,090,708 | ||||
Borrowed funds | 130,490 | 139,093 | 133,876 | ||||
Subordinated debt | 113,666 | 123,575 | 123,501 | ||||
Junior subordinated debentures | 129,184 | 129,054 | 128,924 | ||||
Advances by borrowers for taxes and insurance | 55,622 | 44,582 | 53,608 | ||||
Accrued interest payable | 1,725 | 1,804 | 1,820 | ||||
Other liabilities | 162,214 | 178,664 | 190,258 | ||||
Total liabilities | 12,660,156 | 12,917,937 | 12,722,695 | ||||
Shareholders' equity | |||||||
Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares issued | — | — | — | ||||
Common stock, $0.01 par value: 500,000,000 shares authorized, 126,881,766, 126,612,183 and |
1,269 |
1,266 |
1,279 | ||||
Additional paid-in capital | 1,015,349 | 1,010,405 | 1,025,174 | ||||
Retained earnings | 620,551 | 609,529 | 595,100 | ||||
Accumulated other comprehensive loss | (142,630) | (37,629) | (46,192) | ||||
Total shareholders' equity | 1,494,539 | 1,583,571 | 1,575,361 | ||||
Total liabilities and shareholders' equity | $ 14,154,695 | 14,501,508 | 14,298,056 | ||||
Equity to assets | 10.56 % | 10.92 % | 11.02 % | ||||
Tangible common equity to assets* | 8.01 % | 8.43 % | 8.48 % | ||||
Book value per share | $ 11.78 | 12.51 | 12.32 | ||||
Tangible book value per share* | $ 8.69 | 9.40 | 9.22 | ||||
Closing market price per share | $ 12.80 | 14.16 | 13.64 | ||||
Full time equivalent employees | 2,188 | 2,332 | 2.393 | ||||
Number of banking offices | 150 | 170 | 170 |
* Excludes goodwill and other intangible assets (non-GAAP). |
Northwest Bancshares, Inc. and Subsidiaries | |||||||||
Consolidated Statements of Income (Unaudited) | |||||||||
(dollars in thousands, except per share amounts) | |||||||||
Quarter ended | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
Interest income: | |||||||||
Loans receivable | $ 95,574 | 88,174 | 95,295 | 97,475 | 95,255 | ||||
Mortgage-backed securities | 7,158 | 6,360 | 5,743 | 5,840 | 5,680 | ||||
Taxable investment securities | 715 | 677 | 640 | 649 | 693 | ||||
Tax-free investment securities | 683 | 674 | 688 | 628 | 594 | ||||
FHLB stock dividends | 82 | 81 | 82 | 71 | 138 | ||||
Interest-earning deposits | 1,684 | 467 | 467 | 352 | 192 | ||||
Total interest income | 105,896 | 96,433 | 102,915 | 105,015 | 102,552 | ||||
Interest expense: | |||||||||
Deposits | 3,341 | 3,751 | 4,295 | 4,540 | 4,773 | ||||
Borrowed funds | 2,290 | 2,059 | 1,964 | 2,056 | 2,050 | ||||
Total interest expense | 5,631 | 5,810 | 6,259 | 6,596 | 6,823 | ||||
Net interest income | 100,265 | 90,623 | 96,656 | 98,419 | 95,729 | ||||
Provision for credit losses | 2,629 | (1,481) | (1,909) | (4,354) | — | ||||
Net interest income after provision for credit losses | 97,636 | 92,104 | 98,565 | 102,773 | 95,729 | ||||
Noninterest income: | |||||||||
Loss on sale of investments | (3) | (2) | (4) | (46) | (105) | ||||
Service charges and fees | 13,673 | 13,067 | 13,500 | 13,199 | 12,744 | ||||
Trust and other financial services income | 7,461 | 7,012 | 6,820 | 7,182 | 7,435 | ||||
Insurance commission income | — | — | — | 44 | 1,043 | ||||
Gain/(loss) on real estate owned, net | 291 | (29) | 71 | 247 | 166 | ||||
Income from bank-owned life insurance | 2,008 | 1,983 | 1,343 | 1,332 | 1,639 | ||||
Mortgage banking income | 2,157 | 1,465 | 2,120 | 3,941 | 3,811 | ||||
Gain on sale of insurance business | — | — | — | — | 25,327 | ||||
Other operating income | 4,861 | 2,244 | 3,192 | 3,287 | 2,648 | ||||
Total noninterest income | 30,448 | 25,740 | 27,042 | 29,186 | 54,708 | ||||
Noninterest expense: | |||||||||
Compensation and employee benefits | 48,073 | 46,917 | 48,691 | 49,063 | 48,894 | ||||
Premises and occupancy costs | 7,280 | 7,797 | 7,104 | 7,745 | 7,410 | ||||
Office operations | 3,162 | 3,383 | 3,144 | 4,143 | 3,317 | ||||
Collections expense | 403 | 520 | 602 | 411 | 303 | ||||
Processing expenses | 12,947 | 12,548 | 13,639 | 13,517 | 15,151 | ||||
Marketing expenses | 2,047 | 2,128 | 2,054 | 2,102 | 2,101 | ||||
Federal deposit insurance premiums | 1,130 | 1,129 | 1,131 | 1,184 | 1,353 | ||||
Professional services | 3,333 | 2,573 | 4,513 | 4,295 | 4,231 | ||||
Amortization of intangible assets | 1,115 | 1,183 | 1,205 | 1,321 | 1,433 | ||||
Real estate owned expense | 72 | 37 | 44 | 94 | 85 | ||||
Merger, asset disposition and restructuring expense | — | 1,374 | 2,812 | — | 632 | ||||
Other expenses | 5,245 | 2,355 | 1,346 | 2,227 | 1,422 | ||||
Total noninterest expense | 84,807 | 81,944 | 86,285 | 86,102 | 86,332 | ||||
Income before income taxes | 43,277 | 35,900 | 39,322 | 45,857 | 64,105 | ||||
Income tax expense | 9,851 | 7,613 | 9,266 | 10,794 | 15,138 | ||||
Net income | $ 33,426 | 28,287 | 30,056 | 35,063 | 48,967 | ||||
Basic earnings per share | $ 0.26 | 0.22 | 0.24 | 0.28 | 0.38 | ||||
Diluted earnings per share | $ 0.26 | 0.22 | 0.24 | 0.27 | 0.38 | ||||
Annualized return on average equity | 8.90 % | 7.17 % | 7.65 % | 8.86 % | 12.58 % | ||||
Annualized return on average assets | 0.94 % | 0.80 % | 0.82 % | 0.97 % | 1.37 % | ||||
Annualized return on tangible common equity * | 12.16 % | 10.14 % | 10.02 % | 11.92 % | 16.66 % | ||||
Efficiency ratio ** | 64.03 % | 68.22 % | 66.51 % | 66.44 % | 67.35 % | ||||
Annualized noninterest expense to average assets *** | 2.35 % | 2.23 % | 2.25 % | 2.33 % | 2.35 % |
* Excludes goodwill and other intangible assets (non-GAAP). |
** Excludes gain on sale of insurance business, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). |
*** Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). |
Northwest Bancshares, Inc. and Subsidiaries | |||
Consolidated Statements of Income (Unaudited) | |||
(dollars in thousands, except per share amounts) | |||
Six months ended June 30, | |||
2022 | 2021 | ||
Interest income: | |||
Loans receivable | $ 183,748 | 197,573 | |
Mortgage-backed securities | 13,518 | 9,880 | |
Taxable investment securities | 1,392 | 1,327 | |
Tax-free investment securities | 1,357 | 1,169 | |
FHLB stock dividends | 163 | 254 | |
Interest-earning deposits | 2,151 | 375 | |
Total interest income | 202,329 | 210,578 | |
Interest expense: | |||
Deposits | 7,092 | 10,287 | |
Borrowed funds | 4,349 | 4,104 | |
Total interest expense | 11,441 | 14,391 | |
Net interest income | 190,888 | 196,187 | |
Provision for credit losses | 1,148 | (5,620) | |
Net interest income after provision for credit losses | 189,740 | 201,807 | |
Noninterest income: | |||
Loss on sale of investments | (5) | (126) | |
Service charges and fees | 26,740 | 25,138 | |
Trust and other financial services income | 14,473 | 13,919 | |
Insurance commission income | — | 3,589 | |
Gain on real estate owned, net | 262 | 124 | |
Income from bank-owned life insurance | 3,991 | 3,375 | |
Mortgage banking income | 3,622 | 9,831 | |
Gain on sale of insurance business | — | 25,327 | |
Other operating income | 7,105 | 5,484 | |
Total noninterest income | 56,188 | 86,661 | |
Noninterest expense: | |||
Compensation and employee benefits | 94,990 | 96,133 | |
Premises and occupancy costs | 15,077 | 16,224 | |
Office operations | 6,545 | 6,482 | |
Collections expense | 923 | 919 | |
Processing expenses | 25,495 | 28,607 | |
Marketing expenses | 4,175 | 4,081 | |
Federal deposit insurance premiums | 2,259 | 2,660 | |
Professional services | 5,906 | 8,813 | |
Amortization of intangible assets | 2,298 | 3,027 | |
Real estate owned expense | 109 | 160 | |
Merger, asset disposition and restructuring expense | 1,374 | 641 | |
Other expenses | 7,600 | 4,776 | |
Total noninterest expense | 166,751 | 172,523 | |
Income before income taxes | 79,177 | 115,945 | |
Income tax expense | 17,464 | 26,741 | |
Net income | $ 61,713 | 89,204 | |
Basic earnings per share | $ 0.49 | 0.70 | |
Diluted earnings per share | $ 0.49 | 0.70 | |
Annualized return on average equity | 8.01 % | 11.61 % | |
Annualized return on average assets | 0.87 % | 1.27 % | |
Annualized return on tangible common equity * | 11.28 % | 15.26 % | |
Efficiency ratio ** | 66.00 % | 65.57 % | |
Annualized noninterest expense to average assets *** | 2.29 % | 2.40 % |
* Excludes goodwill and other intangible assets (non-GAAP). |
** Excludes gain on sale of insurance business, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). |
*** Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). |
Northwest Bancshares, Inc. and Subsidiaries | |||||||||
Asset Quality (Unaudited) | |||||||||
(dollars in thousands) | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
Nonaccrual loans current: | |||||||||
Residential mortgage loans | $ 1,970 | 1,884 | 1,354 | 2,015 | 189 | ||||
Home equity loans | 1,337 | 1,376 | 1,212 | 1,267 | 170 | ||||
Consumer loans | 976 | 1,148 | 1,336 | 1,465 | 188 | ||||
Commercial real estate loans | 60,537 | 79,810 | 106,233 | 111,075 | 138,820 | ||||
Commercial loans | 5,270 | 6,060 | 6,098 | 17,021 | 17,545 | ||||
Total nonaccrual loans current | $ 70,090 | 90,278 | 116,233 | 132,843 | 156,912 | ||||
Nonaccrual loans delinquent 30 days to 59 days: | |||||||||
Residential mortgage loans | $ 2 | 760 | 244 | 99 | 68 | ||||
Home equity loans | 172 | 195 | 223 | 328 | 229 | ||||
Consumer loans | 158 | 190 | 241 | 152 | 230 | ||||
Commercial real estate loans | 911 | 333 | 239 | 205 | 1,589 | ||||
Commercial loans | 358 | 4 | 53 | 102 | 406 | ||||
Total nonaccrual loans delinquent 30 days to 59 days | $ 1,601 | 1,482 | 1,000 | 886 | 2,522 | ||||
Nonaccrual loans delinquent 60 days to 89 days: | |||||||||
Residential mortgage loans | $ 199 | 830 | 1,163 | 527 | 207 | ||||
Home equity loans | 566 | 371 | 61 | 142 | 310 | ||||
Consumer loans | 226 | 280 | 292 | 291 | 297 | ||||
Commercial real estate loans | 630 | — | 364 | 419 | 198 | ||||
Commercial loans | 73 | — | 218 | 170 | 21 | ||||
Total nonaccrual loans delinquent 60 days to 89 days | $ 1,694 | 1,481 | 2,098 | 1,549 | 1,033 | ||||
Nonaccrual loans delinquent 90 days or more: | |||||||||
Residential mortgage loans | $ 5,445 | 3,976 | 7,641 | 8,069 | 10,007 | ||||
Home equity loans | 2,081 | 2,968 | 4,262 | 4,745 | 6,256 | ||||
Consumer loans | 1,942 | 1,782 | 2,069 | 2,184 | 2,341 | ||||
Commercial real estate loans | 14,949 | 21,399 | 24,063 | 25,562 | 23,564 | ||||
Commercial loans | 583 | 795 | 1,105 | 1,104 | 4,126 | ||||
Total nonaccrual loans delinquent 90 days or more | $ 25,000 | 30,920 | 39,140 | 41,664 | 46,294 | ||||
Total nonaccrual loans | $ 98,385 | 124,161 | 158,471 | 176,942 | 206,761 | ||||
Total nonaccrual loans | $ 98,385 | 124,161 | 158,471 | 176,942 | 206,761 | ||||
Loans 90 days past due and still accruing | 379 | 420 | 331 | 386 | 302 | ||||
Nonperforming loans | 98,764 | 124,581 | 158,802 | 177,328 | 207,063 | ||||
Real estate owned, net | 1,205 | 929 | 873 | 809 | 1,353 | ||||
Nonperforming assets | $ 99,969 | 125,510 | 159,675 | 178,137 | 208,416 | ||||
Nonaccrual troubled debt restructuring * | $ 37,647 | 16,015 | 17,216 | 12,858 | 8,951 | ||||
Accruing troubled debt restructuring | 16,590 | 12,686 | 13,072 | 13,664 | 18,480 | ||||
Total troubled debt restructuring | $ 54,237 | 28,701 | 30,288 | 26,522 | 27,431 | ||||
Nonperforming loans to total loans | 0.95 % | 1.23 % | 1.59 % | 1.74 % | 2.01 % | ||||
Nonperforming assets to total assets | 0.71 % | 0.87 % | 1.10 % | 1.24 % | 1.46 % | ||||
Allowance for credit losses to total loans | 0.94 % | 0.98 % | 1.02 % | 1.08 % | 1.14 % | ||||
Allowance for total loans excluding PPP loan balances | 0.95 % | 0.98 % | 1.03 % | 1.09 % | 1.17 % | ||||
Allowance for credit losses to nonperforming loans | 99.59 % | 79.70 % | 64.38 % | 61.90 % | 56.66 % |
* Amounts included in nonperforming loans above. |
Northwest Bancshares, Inc. and Subsidiaries | ||||||||||||
Loans by Credit Quality Indicators (Unaudited) | ||||||||||||
(dollars in thousands) | ||||||||||||
At June 30, 2022 | Pass | Special mention * | Substandard ** | Doubtful | Loss | Loans receivable | ||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 3,273,117 | — | 13,658 | — | — | 3,286,775 | ||||||
Home equity loans | 1,275,124 | — | 5,368 | — | — | 1,280,492 | ||||||
Consumer loans | 1,998,863 | — | 3,682 | — | — | 2,002,545 | ||||||
Total Personal Banking | 6,547,104 | — | 22,708 | — | — | 6,569,812 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,600,207 | 51,540 | 224,429 | — | — | 2,876,176 | ||||||
Commercial loans | 954,129 | 2,468 | 30,239 | — | — | 986,836 | ||||||
Total Commercial Banking | 3,554,336 | 54,008 | 254,668 | — | — | 3,863,012 | ||||||
Total loans | $ 10,101,440 | 54,008 | 277,376 | — | — | 10,432,824 | ||||||
At March 31, 2022 | ||||||||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 3,108,366 | — | 13,523 | — | — | 3,121,889 | ||||||
Home equity loans | 1,280,342 | — | 6,178 | — | — | 1,286,520 | ||||||
Consumer loans | 1,892,162 | — | 3,819 | — | — | 1,895,981 | ||||||
Total Personal Banking | 6,280,870 | — | 23,520 | — | — | 6,304,390 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,633,808 | 62,091 | 263,994 | — | — | 2,959,893 | ||||||
Commercial loans | 839,125 | 3,277 | 32,349 | — | — | 874,751 | ||||||
Total Commercial Banking | 3,472,933 | 65,368 | 296,343 | — | — | 3,834,644 | ||||||
Total loans | $ 9,753,803 | 65,368 | 319,863 | — | — | 10,139,034 | ||||||
At December 31, 2021 | ||||||||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 2,978,080 | — | 16,540 | — | — | 2,994,620 | ||||||
Home equity loans | 1,312,820 | — | 7,111 | — | — | 1,319,931 | ||||||
Consumer loans | 1,834,478 | — | 4,270 | — | — | 1,838,748 | ||||||
Total Personal Banking | 6,125,378 | — | 27,921 | — | — | 6,153,299 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,639,676 | 74,123 | 301,685 | — | — | 3,015,484 | ||||||
Commercial loans | 808,323 | 5,730 | 33,556 | — | — | 847,609 | ||||||
Total Commercial Banking | 3,447,999 | 79,853 | 335,241 | — | — | 3,863,093 | ||||||
Total loans | $ 9,573,377 | 79,853 | 363,162 | — | — | 10,016,392 | ||||||
At September 30, 2021 | ||||||||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 2,972,489 | — | 17,032 | — | — | 2,989,521 | ||||||
Home equity loans | 1,342,479 | — | 7,869 | — | — | 1,350,348 | ||||||
Consumer loans | 1,812,360 | — | 4,476 | — | — | 1,816,836 | ||||||
Total Personal Banking | 6,127,328 | — | 29,377 | — | — | 6,156,705 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,799,592 | 63,034 | 299,925 | — | — | 3,162,551 | ||||||
Commercial loans | 813,665 | 10,976 | 55,071 | — | — | 879,712 | ||||||
Total Commercial Banking | 3,613,257 | 74,010 | 354,996 | — | — | 4,042,263 | ||||||
Total loans | $ 9,740,585 | 74,010 | 384,373 | — | — | 10,198,968 | ||||||
At June 30, 2021 | ||||||||||||
Personal Banking: | ||||||||||||
Residential mortgage loans | $ 2,937,418 | — | 17,133 | — | — | 2,954,551 | ||||||
Home equity loans | 1,367,765 | — | 8,463 | — | — | 1,376,228 | ||||||
Consumer loans | 1,741,872 | — | 3,359 | — | — | 1,745,231 | ||||||
Total Personal Banking | 6,047,055 | — | 28,955 | — | — | 6,076,010 | ||||||
Commercial Banking: | ||||||||||||
Commercial real estate loans | 2,781,734 | 73,167 | 360,288 | — | — | 3,215,189 | ||||||
Commercial loans | 943,665 | 11,266 | 63,850 | — | — | 1,018,781 | ||||||
Total Commercial Banking | 3,725,399 | 84,433 | 424,138 | — | — | 4,233,970 | ||||||
Total loans | $ 9,772,454 | 84,433 | 453,093 | — | — | 10,309,980 |
* Includes $7.4 million, $4.4 million, $14.9 million, $16.7 million, and $16.7 million of acquired loans at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively. |
** Includes $59.3 million, $71.9 million, $81.5 million, $110.4 million, and $122.5 million of acquired loans at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively. |
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||||||||||||||||||||
Loan Delinquency (Unaudited) | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
June 30, | * | March 31, | * | December 31, | * | September 30, | * | June 30, | * | ||||||||||||||||||||
(Number of loans and dollar amount of loans) | |||||||||||||||||||||||||||||
Loans delinquent 30 days to 59 days: | |||||||||||||||||||||||||||||
Residential mortgage loans | 20 | $ 785 | — % | 281 | $ 24,057 | 0.8 % | 277 | $ 20,567 | 0.7 % | 17 | $ 765 | — % | 13 | $ 606 | — % | ||||||||||||||
Home equity loans | 107 | 3,664 | 0.3 % | 105 | 3,867 | 0.3 % | 112 | 3,153 | 0.2 % | 101 | 3,351 | 0.2 % | 91 | 3,677 | 0.3 % | ||||||||||||||
Consumer loans | 563 | 6,898 | 0.3 % | 523 | 6,043 | 0.3 % | 589 | 6,536 | 0.4 % | 576 | 6,146 | 0.3 % | 532 | 5,571 | 0.3 % | ||||||||||||||
Commercial real estate loans | 26 | 2,701 | 0.1 % | 25 | 3,643 | 0.1 % | 17 | 17,065 | 0.6 % | 19 | 2,004 | 0.1 % | 13 | 2,857 | 0.1 % | ||||||||||||||
Commercial loans | 24 | 1,486 | 0.2 % | 16 | 1,268 | 0.1 % | 12 | 193 | — % | 10 | 692 | 0.1 % | 15 | 686 | 0.1 % | ||||||||||||||
Total loans delinquent 30 days to 59 days | 740 | $ 15,534 | 0.1 % | 950 | $ 38,878 | 0.4 % | 1,007 | $ 47,514 | 0.5 % | 723 | $ 12,958 | 0.1 % | 664 | $ 13,397 | 0.1 % | ||||||||||||||
Loans delinquent 60 days to 89 days: | |||||||||||||||||||||||||||||
Residential mortgage loans | 61 | $ 5,941 | 0.2 % | 24 | $ 1,950 | 0.1 % | 59 | $ 5,433 | 0.2 % | 55 | $ 4,907 | 0.2 % | 58 | $ 4,051 | 0.1 % | ||||||||||||||
Home equity loans | 28 | 952 | 0.1 % | 28 | 1,138 | 0.1 % | 30 | 949 | 0.1 % | 29 | 1,024 | 0.1 % | 36 | 1,502 | 0.1 % | ||||||||||||||
Consumer loans | 178 | 1,460 | 0.1 % | 159 | 1,839 | 0.1 % | 195 | 2,006 | 0.1 % | 180 | 1,757 | 0.1 % | 181 | 1,988 | 0.1 % | ||||||||||||||
Commercial real estate loans | 9 | 1,472 | 0.1 % | 1 | 112 | — % | 5 | 769 | — % | 8 | 1,170 | — % | 9 | 1,335 | — % | ||||||||||||||
Commercial loans | 6 | 341 | — % | 3 | 103 | — % | 10 | 727 | 0.1 % | 2 | 170 | — % | 2 | 27 | — % | ||||||||||||||
Total loans delinquent 60 days to 89 days | 282 | $ 10,166 | 0.1 % | 215 | $ 5,142 | 0.1 % | 299 | $ 9,884 | 0.1 % | 274 | $ 9,028 | 0.1 % | 286 | $ 8,903 | 0.1 % | ||||||||||||||
Loans delinquent 90 days or more: ** | |||||||||||||||||||||||||||||
Residential mortgage loans | 63 | $ 5,445 | 0.2 % | 47 | $ 3,976 | 0.1 % | 87 | $ 7,641 | 0.3 % | 95 | $ 8,069 | 0.3 % | 115 | $ 10,007 | 0.3 % | ||||||||||||||
Home equity loans | 69 | 2,081 | 0.2 % | 91 | 2,968 | 0.2 % | 105 | 4,262 | 0.3 % | 119 | 4,745 | 0.4 % | 146 | 6,256 | 0.5 % | ||||||||||||||
Consumer loans | 286 | 2,321 | 0.1 % | 287 | 2,202 | 0.1 % | 296 | 2,400 | 0.1 % | 308 | 2,568 | 0.1 % | 356 | 2,643 | 0.2 % | ||||||||||||||
Commercial real estate loans | 31 | 14,949 | 0.5 % | 41 | 21,399 | 0.7 % | 52 | 24,063 | 0.8 % | 59 | 25,562 | 0.8 % | 83 | 23,564 | 0.7 % | ||||||||||||||
Commercial loans | 10 | 583 | 0.1 % | 10 | 795 | 0.1 % | 8 | 1,105 | 0.1 % | 10 | 1,104 | 0.1 % | 18 | 4,126 | 0.4 % | ||||||||||||||
Total loans delinquent 90 days or more | 459 | $ 25,379 | 0.2 % | 476 | $ 31,340 | 0.3 % | 548 | $ 39,471 | 0.4 % | 591 | $ 42,048 | 0.4 % | 718 | $ 46,596 | 0.5 % | ||||||||||||||
Total loans delinquent | 1,481 | $ 51,079 | 0.5 % | 1,641 | $ 75,360 | 0.7 % | 1,854 | $ 96,869 | 1.0 % | 1,588 | $ 64,034 | 0.6 % | 1,668 | $ 68,896 | 0.7 % |
* Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding. |
** Includes purchased credit deteriorated loans of $6.3 million, $7.1 million, $7.3 million, $8.4 million, and $10.3 million at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively. |
Northwest Bancshares, Inc. and Subsidiaries | |||||||||
Allowance for Credit Losses (Unaudited) | |||||||||
(dollars in thousands) | |||||||||
Quarter ended | |||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||
Beginning balance | $ 99,295 | 102,241 | 109,767 | 117,330 | 123,997 | ||||
Provision | 2,629 | (1,481) | (1,909) | (4,354) | — | ||||
Charge-offs residential mortgage | (138) | (1,183) | (784) | (1,263) | (770) | ||||
Charge-offs home equity | (255) | (447) | (1,299) | (1,474) | (379) | ||||
Charge-offs consumer | (1,912) | (1,723) | (2,897) | (2,148) | (2,401) | ||||
Charge-offs commercial real estate | (4,392) | (1,024) | (2,652) | (1,581) | (3,964) | ||||
Charge-offs commercial | (329) | (681) | (2,586) | (412) | (1,161) | ||||
Recoveries | 3,457 | 3,593 | 4,601 | 3,669 | 2,008 | ||||
Ending balance | $ 98,355 | 99,295 | 102,241 | 109,767 | 117,330 | ||||
Net charge-offs to average loans, annualized | 0.14 % | 0.06 % | 0.22 % | 0.12 % | 0.26 % |
Six months ended June 30, | |||
2022 | 2021 | ||
Beginning balance | $ 102,241 | 134,427 | |
Provision | 1,148 | (5,620) | |
Charge-offs residential mortgage | (1,321) | (1,625) | |
Charge-offs home equity | (702) | (607) | |
Charge-offs consumer | (3,635) | (5,004) | |
Charge-offs commercial real estate | (5,416) | (8,590) | |
Charge-offs commercial | (1,010) | (1,215) | |
Recoveries | 7,050 | 5,564 | |
Ending balance | $ 98,355 | 117,330 | |
Net charge-offs to average loans, annualized | 0.10 % | 0.22 % |
Northwest Bancshares, Inc. and Subsidiaries
|
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages. |
Quarter ended | |||||||||||||||||||||||||||||
June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | |||||||||||||||||||||||||
Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | |||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||
Residential mortgage loans | $ 3,171,469 | 27,327 | 3.45 % | $ 2,980,788 | 25,542 | 3.43 % | $ 2,977,942 | 25,269 | 3.39 % | $ 2,959,794 | 25,398 | 3.43 % | $ 2,935,034 | 25,609 | 3.49 % | ||||||||||||||
Home equity loans | 1,277,440 | 11,961 | 3.76 % | 1,293,986 | 11,472 | 3.60 % | 1,328,553 | 11,750 | 3.51 % | 1,356,131 | 11,993 | 3.51 % | 1,380,794 | 12,232 | 3.55 % | ||||||||||||||
Consumer loans | 1,880,769 | 15,777 | 3.36 % | 1,799,037 | 14,907 | 3.36 % | 1,756,620 | 15,514 | 3.50 % | 1,728,563 | 16,220 | 3.72 % | 1,589,739 | 14,555 | 3.67 % | ||||||||||||||
Commercial real estate loans | 2,915,750 | 31,844 | 4.32 % | 3,000,204 | 29,757 | 3.97 % | 3,113,924 | 34,062 | 4.28 % | 3,205,839 | 35,305 | 4.31 % | 3,257,810 | 33,349 | 4.05 % | ||||||||||||||
Commercial loans | 912,454 | 9,090 | 3.94 % | 824,770 | 6,897 | 3.34 % | 855,998 | 9,154 | 4.18 % | 975,603 | 9,096 | 3.65 % | 1,133,969 | 9,978 | 3.48 % | ||||||||||||||
Total loans receivable (a) (b) (d) | 10,157,882 | 95,999 | 3.79 % | 9,898,785 | 88,575 | 3.63 % | 10,033,037 | 95,749 | 3.79 % | 10,225,930 | 98,012 | 3.80 % | 10,297,346 | 95,723 | 3.73 % | ||||||||||||||
Mortgage-backed securities (c) | 1,952,375 | 7,158 | 1.47 % | 1,945,173 | 6,360 | 1.31 % | 1,894,683 | 5,743 | 1.21 % | 1,832,876 | 5,840 | 1.27 % | 1,756,227 | 5,680 | 1.29 % | ||||||||||||||
Investment securities (c) (d) | 376,935 | 1,590 | 1.69 % | 373,694 | 1,540 | 1.65 % | 358,558 | 1,535 | 1.71 % | 348,619 | 1,466 | 1.68 % | 364,414 | 1,466 | 1.61 % | ||||||||||||||
FHLB stock, at cost | 13,428 | 82 | 2.44 % | 13,870 | 81 | 2.38 % | 14,459 | 82 | 2.25 % | 21,607 | 71 | 1.31 % | 23,107 | 138 | 2.40 % | ||||||||||||||
Other interest-earning deposits | 846,142 | 1,684 | 0.79 % | 1,218,960 | 467 | 0.15 % | 1,168,449 | 467 | 0.16 % | 905,130 | 352 | 0.15 % | 810,741 | 192 | 0.09 % | ||||||||||||||
Total interest-earning assets | 13,346,762 | 106,513 | 3.20 % | 13,450,482 | 97,023 | 2.93 % | 13,469,186 | 103,576 | 3.05 % | 13,334,162 | 105,741 | 3.15 % | 13,251,835 | 103,199 | 3.12 % | ||||||||||||||
Noninterest-earning assets (e) | 909,943 | 973,092 | 1,004,905 | 1,074,122 | 1,104,924 | ||||||||||||||||||||||||
Total assets | $ 14,256,705 | $ 14,423,574 | $ 14,474,091 | $ 14,408,284 | $ 14,356,759 | ||||||||||||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||
Savings deposits | $ 2,361,919 | 589 | 0.10 % | $ 2,334,494 | 592 | 0.10 % | $ 2,282,606 | 622 | 0.11 % | $ 2,271,365 | 603 | 0.11 % | $ 2,255,578 | 590 | 0.10 % | ||||||||||||||
Interest-bearing demand deposits | 2,857,336 | 310 | 0.04 % | 2,875,430 | 321 | 0.05 % | 2,933,466 | 411 | 0.06 % | 2,890,905 | 414 | 0.06 % | 2,840,949 | 407 | 0.06 % | ||||||||||||||
Money market deposit accounts | 2,653,467 | 668 | 0.10 % | 2,668,105 | 653 | 0.10 % | 2,618,177 | 656 | 0.10 % | 2,565,159 | 637 | 0.10 % | 2,537,629 | 621 | 0.10 % | ||||||||||||||
Time deposits | 1,220,815 | 1,774 | 0.58 % | 1,292,608 | 2,185 | 0.69 % | 1,356,513 | 2,606 | 0.76 % | 1,423,041 | 2,886 | 0.80 % | 1,493,947 | 3,155 | 0.85 % | ||||||||||||||
Borrowed funds (f) | 123,749 | 167 | 0.54 % | 135,289 | 158 | 0.47 % | 135,038 | 159 | 0.47 % | 131,199 | 154 | 0.47 % | 131,240 | 150 | 0.46 % | ||||||||||||||
Subordinated debt (g) | 119,563 | 1,203 | 4.03 % | 123,608 | 1,250 | 4.05 % | 123,514 | 1,180 | 3.82 % | 123,513 | 1,277 | 4.10 % | 123,443 | 1,264 | 4.11 % | ||||||||||||||
Junior subordinated debentures | 129,142 | 920 | 2.82 % | 129,077 | 651 | 2.02 % | 129,012 | 625 | 1.89 % | 128,946 | 625 | 1.90 % | 128,882 | 636 | 1.95 % | ||||||||||||||
Total interest-bearing liabilities | 9,465,991 | 5,631 | 0.24 % | 9,558,611 | 5,810 | 0.25 % | 9,578,326 | 6,259 | 0.26 % | 9,534,128 | 6,596 | 0.27 % | 9,511,668 | 6,823 | 0.29 % | ||||||||||||||
Noninterest-bearing demand deposits (h) | 3,090,372 | 3,060,698 | 3,093,518 | 3,058,819 | 3,036,202 | ||||||||||||||||||||||||
Noninterest-bearing liabilities | 193,510 | 203,537 | 242,620 | 244,402 | 247,930 | ||||||||||||||||||||||||
Total liabilities | 12,749,873 | 12,822,846 | 12,914,464 | 12,837,349 | 12,795,800 | ||||||||||||||||||||||||
Shareholders' equity | 1,506,832 | 1,600,728 | 1,559,627 | 1,570,935 | 1,560,959 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ 14,256,705 | $ 14,423,574 | $ 14,474,091 | $ 14,408,284 | $ 14,356,759 | ||||||||||||||||||||||||
Net interest income/Interest rate spread | 100,882 | 2.96 % | 91,213 | 2.68 % | 97,317 | 2.79 % | 99,145 | 2.87 % | 96,376 | 2.84 % | |||||||||||||||||||
Net interest-earning assets/Net interest margin | $ 3,880,771 | 3.07 % | $ 3,891,871 | 2.75 % | $ 3,890,860 | 2.89 % | $ 3,800,034 | 2.97 % | $ 3,740,167 | 2.91 % | |||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.41X | 1.41X | 1.41X | 1.40X | 1.39X |
(a) | Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status. |
(b) | Interest income includes accretion/amortization of deferred loan fees/expenses, which was not material. |
(c) | Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale. |
(d) | Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis. |
(e) | Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
(f) | Average balances include FHLB borrowings and collateralized borrowings. |
(g) | On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity of September 15, 2030. |
(h) | Average cost of deposits were 0.11%, 0.12%, 0.14%, 0.15%, and 0.16%, respectively. |
(i) | Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans — 3.77%, 3.61%, 3.77%, 3.79%, and 3.71%, respectively, Investment securities — 1.48%, 1.45%, 1.48%, 1.47%, and 1.41%, respectively, Interest-earning assets — 3.18%, 2.91%, 3.03%, 3.13%, and 3.10%, respectively. GAAP basis net interest rate spreads were 2.94%, 2.66%, 2.77%, 2.86%, and 2.82%, respectively, and GAAP basis net interest margins were 3.05%, 2.73%, 2.87%, 2.95%, and 2.89%, respectively. |
Northwest Bancshares, Inc. and Subsidiaries
|
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages. |
Six months ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Average balance | Interest | Avg. yield/ cost (i) | Average balance | Interest | Avg. yield/ cost (i) | ||||||
Assets | |||||||||||
Interest-earning assets: | |||||||||||
Residential mortgage loans | $ 3,077,155 | 52,868 | 3.44 % | $ 2,971,037 | 51,975 | 3.50 % | |||||
Home equity loans | 1,285,668 | 23,433 | 3.68 % | 1,406,260 | 25,046 | 3.57 % | |||||
Consumer loans | 1,840,110 | 30,684 | 3.36 % | 1,526,861 | 29,121 | 3.82 % | |||||
Commercial real estate loans | 2,957,744 | 61,601 | 4.14 % | 3,285,696 | 71,820 | 4.32 % | |||||
Commercial loans | 868,854 | 15,987 | 3.66 % | 1,161,736 | 20,543 | 3.50 % | |||||
Loans receivable (a) (b) (d) | 10,029,531 | 184,573 | 3.71 % | 10,351,590 | 198,505 | 3.85 % | |||||
Mortgage-backed securities (c) | 1,948,794 | 13,518 | 1.39 % | 1,541,585 | 9,880 | 1.28 % | |||||
Investment securities (c) (d) | 375,323 | 3,130 | 1.67 % | 347,977 | 2,847 | 1.64 % | |||||
FHLB stock, at cost | 13,648 | 163 | 2.41 % | 22,462 | 254 | 2.27 % | |||||
Other interest-earning deposits | 1,003,627 | 2,151 | 0.43 % | 805,930 | 375 | 0.09 % | |||||
Total interest-earning assets | 13,370,923 | 203,535 | 3.07 % | 13,069,544 | 211,861 | 3.25 % | |||||
Noninterest-earning assets (e) | 969,111 | 1,103,734 | |||||||||
Total assets | $ 14,340,034 | $ 14,173,278 | |||||||||
Liabilities and shareholders' equity | |||||||||||
Interest-bearing liabilities: | |||||||||||
Savings deposits | $ 2,348,282 | 1,181 | 0.10 % | $ 2,187,184 | 1,215 | 0.11 % | |||||
Interest-bearing demand deposits | 2,866,333 | 631 | 0.04 % | 2,812,348 | 836 | 0.06 % | |||||
Money market deposit accounts | 2,660,745 | 1,321 | 0.10 % | 2,517,673 | 1,278 | 0.10 % | |||||
Time deposits | 1,256,513 | 3,959 | 0.64 % | 1,538,489 | 6,959 | 0.91 % | |||||
Borrowed funds (f) | 129,487 | 324 | 0.50 % | 137,488 | 303 | 0.44 % | |||||
Subordinated debt (g) | 121,574 | 2,454 | 4.04 % | 123,400 | 2,522 | 4.10 % | |||||
Junior subordinated debentures | 129,109 | 1,571 | 2.42 % | 128,850 | 1,278 | 1.96 % | |||||
Total interest-bearing liabilities | 9,512,043 | 11,441 | 0.24 % | 9,445,432 | 14,391 | 0.31 % | |||||
Noninterest-bearing demand deposits (h) | 3,075,617 | 2,921,343 | |||||||||
Noninterest-bearing liabilities | 198,854 | 256,748 | |||||||||
Total liabilities | 12,786,514 | 12,623,523 | |||||||||
Shareholders' equity | 1,553,520 | 1,549,755 | |||||||||
Total liabilities and shareholders' equity | $ 14,340,034 | $ 14,173,278 | |||||||||
Net interest income/Interest rate spread | 192,094 | 2.83 % | 197,470 | 2.94 % | |||||||
Net interest-earning assets/Net interest margin | $ 3,858,880 | 2.87 % | $ 3,624,112 | 3.02 % | |||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.41X | 1.38X |
(a) | Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status. |
(b) | Interest income includes accretion/amortization of deferred loan fees/expenses, which were not material. |
(c) | Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale. |
(d) | Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis. |
(e) | Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
(f) | Average balances include FHLB borrowings and collateralized borrowings. |
(g) | On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity of September 15, 2030. |
(h) | Average cost of deposits were 0.12% and 0.17%, respectively. |
(i) | Shown on a FTE basis. GAAP basis yields were: Loans — 3.69% and 3.83%, respectively; Investment securities — 1.46% and 1.43%, respectively; Interest-earning assets — 3.05% and 3.23%, respectively. GAAP basis net interest rate spreads were 2.81% and 2.92%, respectively; and GAAP basis net interest margins were 2.86% and 3.00%, respectively. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-second-quarter-2022-earnings-and-quarterly-dividend-301592114.html
SOURCE Northwest Bancshares, Inc.
Government
President Biden Delivers The “Darkest, Most Un-American Speech Given By A President”
President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"
Having successfully raged, ranted, lied, and yelled through…
Having successfully raged, ranted, lied, and yelled through the State of The Union, President Biden can go back to his crypt now.
Whatever 'they' gave Biden, every American man, woman, and the other should be allowed to take it - though it seems the cocktail brings out 'dark Brandon'?
Tl;dw: Biden's Speech tonight ...
-
Fund Ukraine.
-
Trump is threat to democracy and America itself.
-
Abortion is good.
-
American Economy is stronger than ever.
-
Inflation wasn't Biden's fault.
-
Illegals are Americans too.
-
Republicans are responsible for the border crisis.
-
Trump is bad.
-
Biden stands with trans-children.
-
J6 was the worst insurrection since the Civil War.
(h/t @TCDMS99)
Tucker Carlson's response sums it all up perfectly:
"that was possibly the darkest, most un-American speech given by an American president. It wasn't a speech, it was a rant..."
Carlson continued: "The true measure of a nation's greatness lies within its capacity to control borders, yet Bid refuses to do it."
"In a fair election, Joe Biden cannot win"
And concluded:
“There was not a meaningful word for the entire duration about the things that actually matter to people who live here.”
Victor Davis Hanson added some excellent color, but this was probably the best line on Biden:
"he doesn't care... he lives in an alternative reality."
— Tucker Carlson (@TuckerCarlson) March 8, 2024
* * *
Watch SOTU Live here...
* * *
Mises' Connor O'Keeffe, warns: "Be on the Lookout for These Lies in Biden's State of the Union Address."
On Thursday evening, President Joe Biden is set to give his third State of the Union address. The political press has been buzzing with speculation over what the president will say. That speculation, however, is focused more on how Biden will perform, and which issues he will prioritize. Much of the speech is expected to be familiar.
The story Biden will tell about what he has done as president and where the country finds itself as a result will be the same dishonest story he's been telling since at least the summer.
He'll cite government statistics to say the economy is growing, unemployment is low, and inflation is down.
Something that has been frustrating Biden, his team, and his allies in the media is that the American people do not feel as economically well off as the official data says they are. Despite what the White House and establishment-friendly journalists say, the problem lies with the data, not the American people's ability to perceive their own well-being.
As I wrote back in January, the reason for the discrepancy is the lack of distinction made between private economic activity and government spending in the most frequently cited economic indicators. There is an important difference between the two:
-
Government, unlike any other entity in the economy, can simply take money and resources from others to spend on things and hire people. Whether or not the spending brings people value is irrelevant
-
It's the private sector that's responsible for producing goods and services that actually meet people's needs and wants. So, the private components of the economy have the most significant effect on people's economic well-being.
Recently, government spending and hiring has accounted for a larger than normal share of both economic activity and employment. This means the government is propping up these traditional measures, making the economy appear better than it actually is. Also, many of the jobs Biden and his allies take credit for creating will quickly go away once it becomes clear that consumers don't actually want whatever the government encouraged these companies to produce.
On top of all that, the administration is dealing with the consequences of their chosen inflation rhetoric.
Since its peak in the summer of 2022, the president's team has talked about inflation "coming back down," which can easily give the impression that it's prices that will eventually come back down.
But that's not what that phrase means. It would be more honest to say that price increases are slowing down.
Americans are finally waking up to the fact that the cost of living will not return to prepandemic levels, and they're not happy about it.
The president has made some clumsy attempts at damage control, such as a Super Bowl Sunday video attacking food companies for "shrinkflation"—selling smaller portions at the same price instead of simply raising prices.
In his speech Thursday, Biden is expected to play up his desire to crack down on the "corporate greed" he's blaming for high prices.
In the name of "bringing down costs for Americans," the administration wants to implement targeted price ceilings - something anyone who has taken even a single economics class could tell you does more harm than good. Biden would never place the blame for the dramatic price increases we've experienced during his term where it actually belongs—on all the government spending that he and President Donald Trump oversaw during the pandemic, funded by the creation of $6 trillion out of thin air - because that kind of spending is precisely what he hopes to kick back up in a second term.
If reelected, the president wants to "revive" parts of his so-called Build Back Better agenda, which he tried and failed to pass in his first year. That would bring a significant expansion of domestic spending. And Biden remains committed to the idea that Americans must be forced to continue funding the war in Ukraine. That's another topic Biden is expected to highlight in the State of the Union, likely accompanied by the lie that Ukraine spending is good for the American economy. It isn't.
It's not possible to predict all the ways President Biden will exaggerate, mislead, and outright lie in his speech on Thursday. But we can be sure of two things. The "state of the Union" is not as strong as Biden will say it is. And his policy ambitions risk making it much worse.
* * *
The American people will be tuning in on their smartphones, laptops, and televisions on Thursday evening to see if 'sloppy joe' 81-year-old President Joe Biden can coherently put together more than two sentences (even with a teleprompter) as he gives his third State of the Union in front of a divided Congress.
President Biden will speak on various topics to convince voters why he shouldn't be sent to a retirement home.
The state of our union under President Biden: three years of decline. pic.twitter.com/Da1KOIb3eR
— Speaker Mike Johnson (@SpeakerJohnson) March 7, 2024
According to CNN sources, here are some of the topics Biden will discuss tonight:
Economic issues: Biden and his team have been drafting a speech heavy on economic populism, aides said, with calls for higher taxes on corporations and the wealthy – an attempt to draw a sharp contrast with Republicans and their likely presidential nominee, Donald Trump.
Health care expenses: Biden will also push for lowering health care costs and discuss his efforts to go after drug manufacturers to lower the cost of prescription medications — all issues his advisers believe can help buoy what have been sagging economic approval ratings.
Israel's war with Hamas: Also looming large over Biden's primetime address is the ongoing Israel-Hamas war, which has consumed much of the president's time and attention over the past few months. The president's top national security advisers have been working around the clock to try to finalize a ceasefire-hostages release deal by Ramadan, the Muslim holy month that begins next week.
An argument for reelection: Aides view Thursday's speech as a critical opportunity for the president to tout his accomplishments in office and lay out his plans for another four years in the nation's top job. Even though viewership has declined over the years, the yearly speech reliably draws tens of millions of households.
Sources provided more color on Biden's SOTU address:
The speech is expected to be heavy on economic populism. The president will talk about raising taxes on corporations and the wealthy. He'll highlight efforts to cut costs for the American people, including pushing Congress to help make prescription drugs more affordable.
Biden will talk about the need to preserve democracy and freedom, a cornerstone of his re-election bid. That includes protecting and bolstering reproductive rights, an issue Democrats believe will energize voters in November. Biden is also expected to promote his unity agenda, a key feature of each of his addresses to Congress while in office.
Biden is also expected to give remarks on border security while the invasion of illegals has become one of the most heated topics among American voters. A majority of voters are frustrated with radical progressives in the White House facilitating the illegal migrant invasion.
It is probable that the president will attribute the failure of the Senate border bill to the Republicans, a claim many voters view as unfounded. This is because the White House has the option to issue an executive order to restore border security, yet opts not to do so
Maybe this is why?
Most Americans are still unaware that the census counts ALL people, including illegal immigrants, for deciding how many House seats each state gets!
— Elon Musk (@elonmusk) March 7, 2024
This results in Dem states getting roughly 20 more House seats, which is another strong incentive for them not to deport illegals.
While Biden addresses the nation, the Biden administration will be armed with a social media team to pump propaganda to at least 100 million Americans.
"The White House hosted about 70 creators, digital publishers, and influencers across three separate events" on Wednesday and Thursday, a White House official told CNN.
Not a very capable social media team...
The State of Confusion https://t.co/C31mHc5ABJ
— zerohedge (@zerohedge) March 7, 2024
The administration's move to ramp up social media operations comes as users on X are mostly free from government censorship with Elon Musk at the helm. This infuriates Democrats, who can no longer censor their political enemies on X.
Meanwhile, Democratic lawmakers tell Axios that the president's SOTU performance will be critical as he tries to dispel voter concerns about his elderly age. The address reached as many as 27 million people in 2023.
"We are all nervous," said one House Democrat, citing concerns about the president's "ability to speak without blowing things."
The SOTU address comes as Biden's polling data is in the dumps.
BetOnline has created several money-making opportunities for gamblers tonight, such as betting on what word Biden mentions the most.
As well as...
We will update you when Tucker Carlson's live feed of SOTU is published.
Fuck it. We’ll do it live! Thursday night, March 7, our live response to Joe Biden’s State of the Union speech. pic.twitter.com/V0UwOrgKvz
— Tucker Carlson (@TuckerCarlson) March 6, 2024
International
What is intersectionality and why does it make feminism more effective?
The social categories that we belong to shape our understanding of the world in different ways.
The way we talk about society and the people and structures in it is constantly changing. One term you may come across this International Women’s Day is “intersectionality”. And specifically, the concept of “intersectional feminism”.
Intersectionality refers to the fact that everyone is part of multiple social categories. These include gender, social class, sexuality, (dis)ability and racialisation (when people are divided into “racial” groups often based on skin colour or features).
These categories are not independent of each other, they intersect. This looks different for every person. For example, a black woman without a disability will have a different experience of society than a white woman without a disability – or a black woman with a disability.
An intersectional approach makes social policy more inclusive and just. Its value was evident in research during the pandemic, when it became clear that women from various groups, those who worked in caring jobs and who lived in crowded circumstances were much more likely to die from COVID.
A long-fought battle
American civil rights leader and scholar Kimberlé Crenshaw first introduced the term intersectionality in a 1989 paper. She argued that focusing on a single form of oppression (such as gender or race) perpetuated discrimination against black women, who are simultaneously subjected to both racism and sexism.
Crenshaw gave a name to ways of thinking and theorising that black and Latina feminists, as well as working-class and lesbian feminists, had argued for decades. The Combahee River Collective of black lesbians was groundbreaking in this work.
They called for strategic alliances with black men to oppose racism, white women to oppose sexism and lesbians to oppose homophobia. This was an example of how an intersectional understanding of identity and social power relations can create more opportunities for action.
These ideas have, through political struggle, come to be accepted in feminist thinking and women’s studies scholarship. An increasing number of feminists now use the term “intersectional feminism”.
The term has moved from academia to feminist activist and social justice circles and beyond in recent years. Its popularity and widespread use means it is subjected to much scrutiny and debate about how and when it should be employed. For example, some argue that it should always include attention to racism and racialisation.
Recognising more issues makes feminism more effective
In writing about intersectionality, Crenshaw argued that singular approaches to social categories made black women’s oppression invisible. Many black feminists have pointed out that white feminists frequently overlook how racial categories shape different women’s experiences.
One example is hair discrimination. It is only in the 2020s that many organisations in South Africa, the UK and US have recognised that it is discriminatory to regulate black women’s hairstyles in ways that render their natural hair unacceptable.
This is an intersectional approach. White women and most black men do not face the same discrimination and pressures to straighten their hair.
“Abortion on demand” in the 1970s and 1980s in the UK and USA took no account of the fact that black women in these and many other countries needed to campaign against being given abortions against their will. The fight for reproductive justice does not look the same for all women.
Similarly, the experiences of working-class women have frequently been rendered invisible in white, middle class feminist campaigns and writings. Intersectionality means that these issues are recognised and fought for in an inclusive and more powerful way.
In the 35 years since Crenshaw coined the term, feminist scholars have analysed how women are positioned in society, for example, as black, working-class, lesbian or colonial subjects. Intersectionality reminds us that fruitful discussions about discrimination and justice must acknowledge how these different categories affect each other and their associated power relations.
This does not mean that research and policy cannot focus predominantly on one social category, such as race, gender or social class. But it does mean that we cannot, and should not, understand those categories in isolation of each other.
Ann Phoenix does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
africa uk pandemicInternational
Biden defends immigration policy during State of the Union, blaming Republicans in Congress for refusing to act
A rising number of Americans say that immigration is the country’s biggest problem. Biden called for Congress to pass a bipartisan border and immigration…
President Joe Biden delivered the annual State of the Union address on March 7, 2024, casting a wide net on a range of major themes – the economy, abortion rights, threats to democracy, the wars in Gaza and Ukraine – that are preoccupying many Americans heading into the November presidential election.
The president also addressed massive increases in immigration at the southern border and the political battle in Congress over how to manage it. “We can fight about the border, or we can fix it. I’m ready to fix it,” Biden said.
But while Biden stressed that he wants to overcome political division and take action on immigration and the border, he cautioned that he will not “demonize immigrants,” as he said his predecessor, former President Donald Trump, does.
“I will not separate families. I will not ban people from America because of their faith,” Biden said.
Biden’s speech comes as a rising number of American voters say that immigration is the country’s biggest problem.
Immigration law scholar Jean Lantz Reisz answers four questions about why immigration has become a top issue for Americans, and the limits of presidential power when it comes to immigration and border security.
1. What is driving all of the attention and concern immigration is receiving?
The unprecedented number of undocumented migrants crossing the U.S.-Mexico border right now has drawn national concern to the U.S. immigration system and the president’s enforcement policies at the border.
Border security has always been part of the immigration debate about how to stop unlawful immigration.
But in this election, the immigration debate is also fueled by images of large groups of migrants crossing a river and crawling through barbed wire fences. There is also news of standoffs between Texas law enforcement and U.S. Border Patrol agents and cities like New York and Chicago struggling to handle the influx of arriving migrants.
Republicans blame Biden for not taking action on what they say is an “invasion” at the U.S. border. Democrats blame Republicans for refusing to pass laws that would give the president the power to stop the flow of migration at the border.
2. Are Biden’s immigration policies effective?
Confusion about immigration laws may be the reason people believe that Biden is not implementing effective policies at the border.
The U.S. passed a law in 1952 that gives any person arriving at the border or inside the U.S. the right to apply for asylum and the right to legally stay in the country, even if that person crossed the border illegally. That law has not changed.
Courts struck down many of former President Donald Trump’s policies that tried to limit immigration. Trump was able to lawfully deport migrants at the border without processing their asylum claims during the COVID-19 pandemic under a public health law called Title 42. Biden continued that policy until the legal justification for Title 42 – meaning the public health emergency – ended in 2023.
Republicans falsely attribute the surge in undocumented migration to the U.S. over the past three years to something they call Biden’s “open border” policy. There is no such policy.
Multiple factors are driving increased migration to the U.S.
More people are leaving dangerous or difficult situations in their countries, and some people have waited to migrate until after the COVID-19 pandemic ended. People who smuggle migrants are also spreading misinformation to migrants about the ability to enter and stay in the U.S.
3. How much power does the president have over immigration?
The president’s power regarding immigration is limited to enforcing existing immigration laws. But the president has broad authority over how to enforce those laws.
For example, the president can place every single immigrant unlawfully present in the U.S. in deportation proceedings. Because there is not enough money or employees at federal agencies and courts to accomplish that, the president will usually choose to prioritize the deportation of certain immigrants, like those who have committed serious and violent crimes in the U.S.
The federal agency Immigration and Customs Enforcement deported more than 142,000 immigrants from October 2022 through September 2023, double the number of people it deported the previous fiscal year.
But under current law, the president does not have the power to summarily expel migrants who say they are afraid of returning to their country. The law requires the president to process their claims for asylum.
Biden’s ability to enforce immigration law also depends on a budget approved by Congress. Without congressional approval, the president cannot spend money to build a wall, increase immigration detention facilities’ capacity or send more Border Patrol agents to process undocumented migrants entering the country.
4. How could Biden address the current immigration problems in this country?
In early 2024, Republicans in the Senate refused to pass a bill – developed by a bipartisan team of legislators – that would have made it harder to get asylum and given Biden the power to stop taking asylum applications when migrant crossings reached a certain number.
During his speech, Biden called this bill the “toughest set of border security reforms we’ve ever seen in this country.”
That bill would have also provided more federal money to help immigration agencies and courts quickly review more asylum claims and expedite the asylum process, which remains backlogged with millions of cases, Biden said. Biden said the bipartisan deal would also hire 1,500 more border security agents and officers, as well as 4,300 more asylum officers.
Removing this backlog in immigration courts could mean that some undocumented migrants, who now might wait six to eight years for an asylum hearing, would instead only wait six weeks, Biden said. That means it would be “highly unlikely” migrants would pay a large amount to be smuggled into the country, only to be “kicked out quickly,” Biden said.
“My Republican friends, you owe it to the American people to get this bill done. We need to act,” Biden said.
Biden’s remarks calling for Congress to pass the bill drew jeers from some in the audience. Biden quickly responded, saying that it was a bipartisan effort: “What are you against?” he asked.
Biden is now considering using section 212(f) of the Immigration and Nationality Act to get more control over immigration. This sweeping law allows the president to temporarily suspend or restrict the entry of all foreigners if their arrival is detrimental to the U.S.
This obscure law gained attention when Trump used it in January 2017 to implement a travel ban on foreigners from mainly Muslim countries. The Supreme Court upheld the travel ban in 2018.
Trump again also signed an executive order in April 2020 that blocked foreigners who were seeking lawful permanent residency from entering the country for 60 days, citing this same section of the Immigration and Nationality Act.
Biden did not mention any possible use of section 212(f) during his State of the Union speech. If the president uses this, it would likely be challenged in court. It is not clear that 212(f) would apply to people already in the U.S., and it conflicts with existing asylum law that gives people within the U.S. the right to seek asylum.
Jean Lantz Reisz does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
congress senate trump pandemic covid-19 mexico ukraine-
Uncategorized2 weeks ago
All Of The Elements Are In Place For An Economic Crisis Of Staggering Proportions
-
Uncategorized1 month ago
Cathie Wood sells a major tech stock (again)
-
Uncategorized3 weeks ago
California Counties Could Be Forced To Pay $300 Million To Cover COVID-Era Program
-
Uncategorized2 weeks ago
Apparel Retailer Express Moving Toward Bankruptcy
-
Uncategorized3 weeks ago
Industrial Production Decreased 0.1% in January
-
International1 month ago
War Delirium
-
Uncategorized3 weeks ago
RFK Jr: The Wuhan Cover-Up & The Rise Of The Biowarfare-Industrial Complex
-
Uncategorized3 weeks ago
GOP Efforts To Shore Up Election Security In Swing States Face Challenges