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Northwest Bancshares Inc

Northwest Bancshares, Inc. Announces Third Quarter 2024 net income of $34 million, or $0.26 per diluted share

Net interest margin expands 13 basis points to 3.33%, inclusive of 4bps from an interest recovery

Average deposits grew $10 million while cost of funds remain ed stable

Noninterest expense declines $2 million due to disciplined expense management

120th consecutive quarterly dividend of $0.20 per share declared

COLUMBUS, Ohio , Oct. 29, 2024 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2024 of $34 million, or $0.26 per diluted share. This represents a decrease of $5 million compared to the same quarter last year, when net income was $39 million, or $0.31 per diluted share, and an increase of $29 million compared to the prior quarter, when net income was $5 million, or $0.04 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended September 30, 2024 were 8.50% and 0.93% compared to 10.27% and 1.08% for the same quarter last year and 1.24% and 0.13% from the prior quarter. 

Compared to adjusted net operating income (non-GAAP) of $35 million, or $0.27, per diluted share in the prior quarter, adjusted net operating income (non-GAAP) decreased by $1 million to $34 million, or $0.26, per diluted share for the quarter ended September 30, 2024. This decrease was driven by an increase in provision expense which was $5 million for the quarter ended September 30, 2024 compared to $(0.4) million for the quarter ended June 30, 2024.  The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended September 30, 2024 were 8.51% and 0.93% compared to 9.00% and 0.96% for prior quarter.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on November 18, 2024 to shareholders of record as of November 8, 2024. This is the 120th 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, 2024, this represents an annualized dividend yield of approximately 6.0%.

Louis J. Torchio, President and CEO, added, "Our performance this quarter demonstrates the strength and resilience of our business model. We've delivered solid results that underscore our expanding earnings power, driven in large part by improvements in our net interest margin. This positive trajectory reflects our team's dedication to operational excellence and strategic growth initiatives."

"As we look ahead, we remain committed to creating long-term value for our shareholders. I'm pleased to announce that for the 120th consecutive quarter, we will be returning our earnings to our shareholders through a $0.20 per share dividend. This consistency in shareholder returns is a testament to our financial stability, performance and our unwavering focus on delivering sustainable growth. We enter the next quarter with confidence, buoyed by our strong performance and the ongoing optimization of our business operations. Our team remains focused on capitalizing on market opportunities while maintaining prudent risk management practices. Northwest is well-positioned to continue driving value for our shareholders, clients and communities in the quarters to come."

Balance Sheet Highlights

Dollars in thousands







Change 3Q24 vs.


3Q24


2Q24


3Q23


2Q24


3Q23

Average loans receivable

$     11,223,602


11,368,749


11,190,959


(1.3) %


0.3 %

Average investments

1,998,855


2,021,347


2,117,135


(1.1) %


(5.6) %

Average deposits

12,096,811


12,086,362


11,719,866


0.1 %


3.2 %

Average borrowed funds

220,677


323,191


643,518


(31.7) %


(65.7) %

  • Average loans receivable increased $33 million from the quarter ended September 30, 2023 driven by our commercial banking portfolio, which grew by $456 million in total, including a $372 million increase in our commercial and industrial  portfolio as we have continued to build-out our commercial lending verticals. This was offset by a decline in our personal banking portfolio, which decreased by $423 million as cash flows from this portfolio were reinvested in our commercial portfolios.  Compared to the second quarter of 2024, average loans receivable decreased by $145 million.  Growth was muted in the quarter as we continue to reinvest cash flows from our personal banking portfolio and focus on profitability and credit discipline.
  • Average investments declined $118 million from the quarter ended September 30, 2023 and $22 million from the quarter ended June 30, 2024. The decline from the prior year was driven by the investment portfolio restructure which occurred in the second quarter and from lack of reinvestment of cash flow over the past year. The decline in average investments from the prior quarter is expected to be temporary as current quarter purchases occurred later in the quarter. This is evident as ending balances increased $28 million from the prior quarter end.
  • Average deposits grew $377 million from the quarter ended September 30, 2023, driven by a $666 million increase in our average time deposits as we competitively positioned our deposit products over the last year. This increase was partially offset by a decrease in money market balances as customers shifted balances into higher yielding time deposit accounts. Compared to the second quarter of 2024, average deposits grew $10 million, driven by a $12 million increase in our average interest-bearing checking deposits. This increase was partially offset by a decrease in time deposits.
  • Average borrowings saw a significant reduction of $423 million compared to the quarter end September 30, 2023 and $103 million compared to the quarter ended June 30, 2024. The decrease in average borrowings is primarily attributable to the strategic pay-down of wholesale borrowings. This decrease was made possible by the restructuring of our investment portfolio as well as a substantial increase in cash reserves resulting from the notable rise in the average balance of deposits noted above.

Income Statement Highlights

Dollars in thousands






Change 3Q24 vs.


3Q24


2Q24


3Q23


2Q24


3Q23

Interest income

$    171,381


166,854


151,598


2.7 %


13.0 %

Interest expense

60,079


60,013


43,230


0.1 %


39.0 %

Net interest income

$    111,302


106,841


108,368


4.2 %


2.7 %











Net interest margin

3.33 %


3.20 %


3.23 %





Compared to the quarter ended September 30, 2023, net interest income increased $3 million and net interest margin increased to 3.33% from 3.23% for the quarter ended September 30, 2023.  This increase in net interest income resulted primarily from:

  • A $20 million increase in interest income that was the result of cash and marketable securities being redeployed into higher yielding loans. Driven by higher market interest rates, the average yield on loans improved to 5.57% for the quarter ended September 30, 2024 from 5.01% for the quarter ended September 30, 2023.  This increase includes a one-time interest recovery of $1.3 million on a commercial loan payoff.  Excluding this interest recovery, the adjusted yield on loans for the quarter ended September 30, 2024 was 5.53% and the adjusted net interest margin was 3.29%
  • A $17 million increase in interest expense as the result of higher costs of deposits due to the higher interest rate environment and competitive pressure for liquidity. The cost of interest-bearing liabilities increased to 2.39% for the quarter ended September 30, 2024 from 1.74% for the quarter ended September 30, 2023.

Compared to the quarter ended June 30, 2024, net interest income increased $4 million and net interest margin increased to 3.33% for the quarter ended September 30, 2024 from 3.20% for the quarter ended June 30, 2024. This increase in net interest income resulted from the following:

  • A $5 million increase in interest income driven by higher interest income on loans receivable and investments as average yield increased compared to the prior quarter. The average yield on loans improved to 5.57% from 5.47% and average investment yields increased to 2.48% from 2.13% for the quarter ended June 30, 2024.

Dollars in thousands







Change 3Q24 vs.


3Q24


2Q24


3Q23


2Q24


3Q23

Provision for credit losses - loans

$           5,727


2,169


3,983


164.0 %


43.8 %

Provision for credit losses - unfunded commitments

(852)


(2,539)


(2,981)


(66.4) %


(71.4) %

Total provision for credit losses expense

$           4,875


(370)


1,002


(1417.6) %


386.5 %

The total provision for credit losses for the quarter ended September 30, 2024 was $4.9 million primarily driven by growth within our commercial lending portfolio and changes in the economic forecasts coupled with a decline in our reserves for unfunded commitments in the current period. This decline is based on the timing of origination and funding of commercial construction loans and lines of credit.

Additionally, the Company saw an increase in classified loans to $320 million, or 2.83% of total loans, at September 30, 2024 from $209 million, or 1.84% of total loans, at September 30, 2023 and $257 million, or 2.26% of total loans, at June 30, 2024.  The primary driver of the increase over the past year and quarter is reflective of the Company's exposure to the Long Term Healthcare segment and the challenges a few operators have experienced post Covid.

Dollars in thousands






Change 3Q24 vs.


3Q24


2Q24


3Q23


2Q24


3Q23

Noninterest income:










Loss on sale of investments

$                —


(39,413)


—


NA


NA

Gain on sale of SBA loans

667


1,457


301


(54.2) %


121.6 %

Service charges and fees

15,932


15,527


15,270


2.6 %


4.3 %

Trust and other financial services income

7,924


7,566


7,085


4.7 %


11.8 %

Gain on real estate owned, net

105


487


29


(78.4) %


262.1 %

Income from bank-owned life insurance

1,434


1,371


4,561


4.6 %


(68.6) %

Mortgage banking income

744


901


632


(17.4) %


17.7 %

Other operating income

1,027


3,255


3,010


(68.4) %


(65.9) %

Total noninterest income/(loss)

$         27,833


(8,849)


30,888


(414.5) %


(9.9) %

Noninterest income decreased from the quarter ended September 30, 2023 due to a decrease in income from bank-owned life insurance of $3 million as a result of death benefits received in the prior period.  Compared to the quarter ended June 30, 2024, excluding the loss on sale of securities of $39 million, noninterest income decreased by $3 million due to a loss on an equity method investment, lower gain on sale of SBA loans and loss on the sale of buildings during the quarter.

Dollars in thousands






Change 3Q24 vs.


3Q24


2Q24


3Q23


2Q24


3Q23

Noninterest expense:










Personnel expense

$         56,186


53,531


51,243


5.0 %


9.6 %

Non-personnel expense

34,581


38,889


36,327


(11.1) %


(4.8) %

Total noninterest expense

$         90,767


92,420


87,570


(1.8) %


3.7 %

Noninterest expense increased from the quarter ended September 30, 2023 due to a $5 million increase in personnel expenses driven by the build-out of the commercial business and related credit, risk management and internal audit support functions over the past year coupled with an increase in contracted employees utilized during the quarter and an increase in medical expenses.

Compared to the quarter ended June 30, 2024, noninterest expense decreased due to a $3 million increase in personnel expense driven by additional contracted employees utilized during the quarter and an increase in medical expenses, which were more than offset by a decrease in non-personnel expense of $4 million due to restructuring expenses in the prior quarter and a decrease in fraud losses. 

Dollars in thousands






Change 3Q24 vs.


3Q24


2Q24


3Q23


2Q24


3Q23

Income before income taxes

$         43,493


5,942


50,684


632.0 %


(14.2) %

Income tax expense

9,875


1,195


11,464


726.4 %


(13.9) %

Net income

$         33,618


4,747


39,220


608.2 %


(14.3) %

The provision for income taxes decreased by $2 million from the quarter ended September 30, 2023 and increased $9 million from the quarter ended June 30, 2024 primarily due to the quarterly change in income before income taxes.

Net income decreased from the quarter ended September 30, 2023, due to the factors discussed above, and increased from the quarter ended June 30, 2024 due to loss on sale of investments from the prior period balance sheet restructuring as well as the additional factors discussed above.

Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank 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, as well as employee benefits and wealth management services. As of September 30, 2024, Northwest operated 130 full-service financial centers and eleven free standing drive-up facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.'s common stock is listed on The Nasdaq Stock Market LLC ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed online 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 inflation and 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; (8) changes in liquidity, including the size and composition of our deposit portfolio; (9) reduction in the value of our goodwill and other intangible assets; and (10) the effect of any pandemic, 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, except as required by law.

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(dollars in thousands, except per share amounts)



September 30,
2024


December 31,
2023


September 30,
2023

Assets






Cash and cash equivalents

$       226,883


122,260


161,995

Marketable securities available-for-sale (amortized cost of $1,248,104, $1,240,003 and $1,262,080,
respectively)

1,111,868


1,043,359


1,010,076

Marketable securities held-to-maturity (fair value of $672,641, $699,506 and $682,681, respectively)

766,772


814,839


830,106

Total cash and cash equivalents and marketable securities

2,105,523


1,980,458


2,002,177







Loans held-for-sale

9,370


8,768


10,592

Residential mortgage loans

3,248,788


3,419,417


3,462,606

Home equity loans

1,167,202


1,227,858


1,258,765

Consumer loans

1,998,032


2,126,027


2,155,119

Commercial real estate loans

2,994,379


2,974,010


2,922,582

Commercial loans

1,886,787


1,658,729


1,500,609

Total loans receivable

11,304,558


11,414,809


11,310,273

Allowance for credit losses

(125,813)


(125,243)


(124,841)

Loans receivable, net

11,178,745


11,289,566


11,185,432







FHLB stock, at cost

21,223


30,146


40,404

Accrued interest receivable

46,678


47,353


42,624

Real estate owned, net

76


104


363

Premises and equipment, net

126,391


138,838


138,041

Bank-owned life insurance

255,324


251,895


250,502

Goodwill

380,997


380,997


380,997

Other intangible assets, net

3,363


5,290


6,013

Other assets

236,005


294,458


315,648

Total assets

$   14,354,325


14,419,105


14,362,201

Liabilities and shareholders' equity






Liabilities






Noninterest-bearing demand deposits

$     2,581,769


2,669,023


2,774,291

Interest-bearing demand deposits

2,676,779


2,634,546


2,598,080

Money market deposit accounts

1,956,747


1,968,218


2,042,813

Savings deposits

2,145,735


2,105,234


2,116,360

Time deposits

2,710,049


2,602,881


2,258,338

Total deposits

12,071,079


11,979,902


11,789,882







Borrowed funds

204,374


398,895


604,587

Subordinated debt

114,451


114,189


114,102

Junior subordinated debentures

129,769


129,574


129,509

Advances by borrowers for taxes and insurance

24,700


45,253


27,653

Accrued interest payable

15,125


13,669


7,915

Other liabilities

203,502


186,306


190,122

Total liabilities

12,763,000


12,867,788


12,863,770

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, 127,400,199, 127,110,453 and
127,101,349 shares issued and outstanding, respectively

1,274


1,271


1,271

Additional paid-in capital

1,030,384


1,024,852


1,023,591

Retained earnings

665,845


674,686


671,092

Accumulated other comprehensive loss

(106,178)


(149,492)


(197,523)

Total shareholders' equity

1,591,325


1,551,317


1,498,431

Total liabilities and shareholders' equity

$   14,354,325


14,419,105


14,362,201







Equity to assets

11.09 %


10.76 %


10.43 %

Tangible common equity to tangible assets*

8.64 %


8.30 %


7.95 %

Book value per share

$           12.49


12.20


11.79

Tangible book value per share*

$             9.47


9.17


8.74

Closing market price per share

$           13.38


12.48


10.23

Full time equivalent employees

1,975


2,098


2,084

Number of banking offices

141


142


142



*         

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

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)



Quarter ended


September 30,
2024


June 30,
2024


March 31,
2024


December 31,
2023


September 30,
2023






Interest income:










Loans receivable

$     156,413


153,954


149,571


146,523


140,667

Mortgage-backed securities

10,908


9,426


7,944


7,951


8,072

Taxable investment securities

842


728


794


786


786

Tax-free investment securities

512


457


491


492


491

FHLB stock dividends

394


498


607


666


668

Interest-earning deposits

2,312


1,791


832


970


914

Total interest income

171,381


166,854


160,239


157,388


151,598

Interest expense:










Deposits

54,198


52,754


47,686


40,600


31,688

Borrowed funds

5,881


7,259


9,315


10,486


11,542

Total interest expense

60,079


60,013


57,001


51,086


43,230

Net interest income

111,302


106,841


103,238


106,302


108,368

Provision for credit losses - loans

5,727


2,169


4,234


3,801


3,983

Provision for credit losses - unfunded commitments

(852)


(2,539)


(799)


4,145


(2,981)

Net interest income after provision for credit losses

106,427


107,211


99,803


98,356


107,366

Noninterest income:










Loss on sale of investments

—


(39,413)


—


(1)


—

Gain on sale of SBA loans

667


1,457


873


388


301

Gain on sale of loans

—


—


—


726


—

Service charges and fees

15,932


15,527


15,523


15,922


15,270

Trust and other financial services income

7,924


7,566


7,127


6,884


7,085

Gain on real estate owned, net

105


487


57


1,084


29

Income from bank-owned life insurance

1,434


1,371


1,502


1,454


4,561

Mortgage banking income

744


901


452


247


632

Other operating income

1,027


3,255


2,429


2,465


3,010

Total noninterest income/(loss)

27,833


(8,849)


27,963


29,169


30,888

Noninterest expense:










Compensation and employee benefits

56,186


53,531


51,540


50,194


51,243

Premises and occupancy costs

7,115


7,464


7,627


7,049


7,052

Office operations

2,811


3,819


2,767


3,747


3,398

Collections expense

474


406


336


328


551

Processing expenses

14,570


14,695


14,725


15,017


14,672

Marketing expenses

2,004


2,410


2,149


1,317


2,379

Federal deposit insurance premiums

2,763


2,865


3,023


2,643


2,341

Professional services

3,302


3,728


4,065


6,255


3,002

Amortization of intangible assets

590


635


701


724


795

Real estate owned expense

23


57


66


51


141

Merger, asset disposition and restructuring expense

43


1,915


955


2,354


—

Other expenses

886


895


2,070


997


1,996

Total noninterest expense

90,767


92,420


90,024


90,676


87,570

Income before income taxes

43,493


5,942


37,742


36,849


50,684

Income tax expense

9,875


1,195


8,579


7,835


11,464

Net income

$       33,618


4,747


29,163


29,014


39,220











Basic earnings per share

$          0.26


0.04


0.23


0.23


0.31

Diluted earnings per share

$          0.26


0.04


0.23


0.23


0.31











Annualized return on average equity

8.50 %


1.24 %


7.57 %


7.64 %


10.27 %

Annualized return on average assets

0.93 %


0.13 %


0.81 %


0.80 %


1.08 %

Annualized return on average tangible common equity *

11.26 %


1.65 %


10.08 %


10.28 %


13.80 %

Efficiency ratio

65.24 %


94.31 %


68.62 %


66.93 %


62.88 %

Efficiency ratio, excluding certain items **

64.78 %


65.41 %


67.35 %


64.66 %


62.31 %

Annualized noninterest expense to average assets

2.52 %


2.57 %


2.51 %


2.51 %


2.42 %

Annualized noninterest expense to average assets, excluding certain
items**

2.50 %


2.50 %


2.47 %


2.43 %


2.39 %

*         

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

**       

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

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share amounts)



Nine months ended September 30,


2024


2023

Interest income:




Loans receivable

$                         459,938


397,136

Mortgage-backed securities

28,278


24,935

Taxable investment securities

2,364


2,472

Tax-free investment securities

1,460


1,858

FHLB stock dividends

1,499


2,202

Interest-earning deposits

4,935


1,931

Total interest income

498,474


430,534

Interest expense:




Deposits

154,638


64,743

Borrowed funds

22,455


36,410

Total interest expense

177,093


101,153

Net interest income

321,381


329,381

Provision for credit losses - loans

12,130


14,863

Provision for credit losses - unfunded commitments

(4,190)


65

Net interest income after provision for credit losses

313,441


314,453

Noninterest income:




Loss on sale of investments

(39,413)


(8,306)

Gain on sale of mortgage servicing rights

—


8,305

Gain on sale of SBA loans

2,997


1,412

Service charges and fees

46,982


43,292

Trust and other financial services income

22,617


20,400

Gain on real estate owned, net

649


922

Income from bank-owned life insurance

4,307


7,134

Mortgage banking income

2,097


2,184

Other operating income

6,711


9,311

Total noninterest income

46,947


84,654

Noninterest expense:




Compensation and employee benefits

161,257


145,497

Premises and occupancy costs

22,206


22,102

Office operations

9,397


9,208

Collections expense

1,216


1,367

Processing expenses

43,990


43,670

Marketing expenses

6,563


8,127

Federal deposit insurance premiums

8,651


6,628

Professional services

11,095


11,564

Amortization of intangible assets

1,926


2,546

Real estate owned expense

146


405

Merger, asset disposition and restructuring expense

2,913


4,395

Other expenses

3,851


5,369

Total noninterest expense

273,211


260,878

Income before income taxes

87,177


138,229

Income tax expense

19,649


32,286

Net income

$                           67,528


105,943





Basic earnings per share

$                               0.53


0.83

Diluted earnings per share

$                               0.53


0.83





Annualized return on average equity

5.80 %


9.37 %

Annualized return on average assets

0.63 %


0.99 %

Annualized return on tangible common equity *

7.71 %


12.61 %





Efficiency ratio

74.18 %


63.01 %

Efficiency ratio, excluding certain items **

65.82 %


61.33 %

Annualized noninterest expense to average assets

2.53 %


2.45 %

Annualized noninterest expense to average assets, excluding certain items **

2.49 %


2.38 %

*         

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

**       

Excludes loss on sale of investments, gain on sale of mortgage servicing rights, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).  See reconciliation of non-GAAP financial measures for additional information relating to these items.

 

Northwest Bancshares, Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures (Unaudited) *

(dollars in thousands, except per share amounts)



Quarter ended


Nine months ended September 30,


September 30,
2024


June 30,
2024


September 30,
2023


2024


2023

Reconciliation of net income to adjusted net operating income:










Net income (GAAP)

$       33,618


4,747


39,220


67,528


105,943

Non-GAAP adjustments










Add: merger, asset disposition and restructuring expense

43


1,915


—


2,913


4,395

Add: loss on the sale of investments

—


39,413


—


39,413


8,306

Less: gain on sale of mortgage servicing rights

—


—


—


—


(8,305)

Less: tax benefit of non-GAAP adjustments

(12)


(11,572)


—


(11,851)


(1,231)

Adjusted net operating income (non-GAAP)

$       33,649


34,503


39,220


98,003


109,108

Diluted earnings per share (GAAP)

$          0.26


0.04


0.31


0.53


0.83

Diluted adjusted operating earnings per share (non-GAAP)

$          0.26


0.27


0.31


0.77


0.86











Average equity

$  1,572,897


1,541,434


1,515,287


1,554,800


1,511,428

Average assets

14,351,669


14,458,592


14,379,323


14,406,092


14,249,857

Annualized return on average equity (GAAP)

8.50 %


1.24 %


10.27 %


5.80 %


9.37 %

Annualized return on average assets (GAAP)

0.93 %


0.13 %


1.08 %


0.63 %


0.99 %

Annualized return on average equity, excluding merger, asset
disposition and restructuring expense, loss on the sale of investments
and gain on sale of mortgage servicing rights, net of tax (non-GAAP)

8.51 %


9.00 %


10.27 %


8.42 %


9.65 %

Annualized return on average assets, excluding merger, asset
disposition and restructuring expense, loss on sale of investments, and
gain on sale of mortgage servicing rights, net of tax (non-GAAP)

0.93 %


0.96 %


1.08 %


0.91 %


1.02 %

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

September 30,
2024


December 31,
2023


September 30,
2023

Tangible common equity to assets






Total shareholders' equity

$     1,591,325


1,551,317


1,498,431

  Less: goodwill and intangible assets

(384,360)


(386,287)


(387,010)

Tangible common equity

$     1,206,965


1,165,030


1,111,421







Total assets

$   14,354,325


14,419,105


14,362,201

Less: goodwill and intangible assets

(384,360)


(386,287)


(387,010)

  Tangible assets

$   13,969,965


14,032,818


13,975,191







Tangible common equity to tangible assets

8.64 %


8.30 %


7.95 %







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






Tangible common equity

$     1,206,965


1,165,030


1,111,421

Less: unrealized losses on held to maturity investments

(94,131)


(115,334)


(147,425)

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

26,357


32,294


41,279

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

$     1,139,191


1,081,990


1,005,275







Tangible assets

$   13,969,965


14,032,818


13,975,191







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

8.15 %


7.71 %


7.19 %







Tangible book value per share






Tangible common equity

$     1,206,965


1,165,030


1,111,421

Common shares outstanding

127,400,199


127,110,453


127,101,349

Tangible book value per share

9.47


9.17


8.74

 

Northwest Bancshares, Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures (Unaudited) *

(dollars in thousands, except per share amounts)


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



Quarter ended


Nine months ended September 30,


September 30,
2024


June 30,
2024


March 31,
2024


December 31,
2023


September 30,
2023


2024


2023








Annualized return on average tangible common equity














Net income

$        33,618


4,747


29,163


29,014


39,220


67,528


105,943















Average shareholders' equity

1,572,897


1,541,434


1,549,870


1,506,895


1,515,287


1,554,800


1,511,428

Less: average goodwill and intangible assets

(384,730)


(385,364)


(386,038)


(386,761)


(387,523)


(385,375)


(388,365)

Average tangible common equity

$   1,188,167


1,156,070


1,163,832


1,120,134


1,127,764


1,169,425


1,123,063















Annualized return on average tangible common equity

11.26 %


1.65 %


10.08 %


10.28 %


13.80 %


7.71 %


12.61 %















Efficiency ratio, excluding loss on the sale of investments, gain on the sale of
mortgage servicing rights, amortization and merger, asset disposition and
restructuring expenses














Non-interest expense

$        90,767


92,420


90,024


90,676


87,570


273,211


260,878

Less: amortization expense

(590)


(635)


(701)


(724)


(795)


(1,926)


(2,546)

Less: merger, asset disposition and restructuring expenses

(43)


(1,915)


(955)


(2,354)


—


(2,913)


(4,395)

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

$        90,134


89,870


88,368


87,598


86,775


268,372


253,937















Net interest income

$      111,302


106,841


103,238


106,302


108,368


321,381


329,381

Non-interest income

27,833


(8,849)


27,963


29,169


30,888


46,947


84,654

  Add: loss on the sale of investments

—


39,413


—


1


—


39,413


8,306

  Less: gain on sale of mortgage servicing rights

—


—


—


—


—


—


(8,305)

Net interest income plus non-interest income, excluding loss on sale of investments
and gain on sale of mortgage servicing rights

$      139,135


137,405


131,201


135,472


139,256


407,741


414,036















Efficiency ratio, excluding loss on sale of investments, gain on sale of mortgage
servicing rights, amortization and merger, asset disposition and restructuring expenses

64.78 %


65.41 %


67.35 %


64.66 %


62.31 %


65.82 %


61.33 %















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














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

$        90,134


89,870


88,368


87,598


86,775


268,372


253,937

Average assets

14,351,669


14,458,592


14,408,612


14,329,020


14,379,323


14,406,092


14,249,857

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

2.50 %


2.50 %


2.47 %


2.43 %


2.39 %


2.49 %


2.38 %

*   

The table summarizes the Company's results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude merger, asset disposition and restructuring expense, loss on sale of investments and gain on sale of mortgage servicing rights. The net tax effect was calculated using statutory tax rates of approximately 28.0%. The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.

 

Northwest Bancshares, Inc. and Subsidiaries

Deposits (Unaudited)

(dollars in thousands)


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



As of September 30, 2024


Balance


Percent of
total deposits


Number of
relationships

Uninsured deposits per the Call Report (1)

$                      3,097,247


25.7 %


5,234

Less intercompany deposit accounts

1,201,625


10.0 %


12

Less collateralized deposit accounts

480,039


4.0 %


262

Uninsured deposits excluding intercompany and collateralized accounts

$                      1,415,583


11.7 %


4,960

(1)

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

Our largest uninsured depositor, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $19.6 million, or 0.16% of total deposits, as of September 30, 2024. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $103 million, or 0.85% of total deposits, as of September 30, 2024. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $285,000 as of September 30, 2024.

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

As of September 30, 2024


Balance


Percent of
total deposits


Number of
accounts

Personal noninterest bearing demand deposits

$              1,316,845


10.9 %


286,061

Business noninterest bearing demand deposits

1,264,924


10.5 %


43,284

Personal interest-bearing demand deposits

1,340,668


11.1 %


56,490

Business interest-bearing demand deposits

1,336,111


11.0 %


7,688

Personal money market deposits

1,394,904


11.6 %


24,735

Business money market deposits

561,843


4.6 %


2,738

Savings deposits

2,145,735


17.8 %


183,941

Time deposits

2,710,049


22.5 %


81,728

Total deposits

$            12,071,079


100.0 %


686,665

Our average deposit account balance as of September 30, 2024 was $18,000. The Company's insured cash sweep deposit balance was $487 million as of September 30, 2024.

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

3/31/2023


6/30/2023


9/30/2023


12/31/2023


3/31/2024


6/30/2024


9/30/2024

Personal noninterest bearing demand deposits

$   1,428,232


1,397,167


1,375,144


1,357,875


1,369,294


1,350,520


1,316,845

Business noninterest bearing demand deposits

1,467,860


1,423,396


1,399,147


1,311,148


1,249,085


1,231,179


1,264,924

Personal interest-bearing demand deposits

1,627,546


1,535,254


1,477,617


1,464,058


1,427,140


1,396,825


1,340,668

Business interest-bearing demand deposits

466,105


624,252


689,914


812,433


805,069


815,358


955,120

Municipal demand deposits

447,852


418,147


430,549


358,055


325,657


353,567


380,991

Personal money market deposits

1,626,614


1,511,652


1,463,689


1,435,939


1,393,532


1,390,162


1,394,904

Business money market deposits

701,436


642,601


579,124


532,279


559,005


574,679


561,843

Savings deposits

2,194,743


2,120,215


2,116,360


2,105,234


2,156,048


2,148,727


2,145,735

Time deposits

1,576,791


1,989,711


2,258,338


2,602,881


2,786,814


2,826,362


2,710,049

Total deposits

$  11,537,179


11,662,395


11,789,882


11,979,902


12,071,644


12,087,379


12,071,079

 

Northwest Bancshares, Inc. and Subsidiaries

Regulatory Capital Requirements (Unaudited)

(dollars in thousands)



At September 30, 2024


Actual (1)


Minimum capital

requirements (2)


Well capitalized

requirements 


Amount


Ratio


Amount


Ratio


Amount


Ratio

Total capital (to risk weighted assets)












Northwest Bancshares, Inc.

$     1,705,283


16.024 %


$     1,117,392


10.500 %


$     1,064,183


10.000 %

Northwest Bank

1,460,909


13.740 %


1,116,384


10.500 %


1,063,223


10.000 %













Tier 1 capital (to risk weighted assets)












Northwest Bancshares, Inc.

1,457,698


13.698 %


904,555


8.500 %


851,346


8.000 %

Northwest Bank

1,327,894


12.489 %


903,739


8.500 %


850,578


8.000 %













Common equity tier 1 capital (to risk weighted assets)












Northwest Bancshares, Inc.

1,331,918


12.516 %


744,928


7.000 %


691,719


6.500 %

Northwest Bank

1,327,894


12.489 %


744,256


7.000 %


691,095


6.500 %













Tier 1 capital (leverage)  (to average assets)












Northwest Bancshares, Inc.

1,457,698


10.283 %


567,025


4.000 %


708,782


5.000 %

Northwest Bank

1,327,894


9.374 %


566,633


4.000 %


708,292


5.000 %

(1)

September 30, 2024 figures are estimated.

(2)

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 2023 Annual Report on Form 10-K.

 

Northwest Bancshares, Inc. and Subsidiaries

Marketable Securities (Unaudited)

(dollars in thousands)




September 30, 2024

Marketable securities available-for-sale


Amortized cost


Gross unrealized

holding gains


Gross unrealized

holding losses


Fair value


Weighted average
duration

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











Due after ten years


$              46,292


—


(8,497)


37,795


6.05












   Debt issued by government sponsored enterprises:











   Due after one year through five years


136


—


(4)


132


0.87












   Municipal securities:











Due after one year through five years


884


18


(2)


900


1.72

   Due after five years through ten years


15,729


277


(1,382)


14,624


7.57

   Due after ten years


52,244


288


(6,971)


45,561


10.37












   Corporate debt issues:











   Due after five years through ten years


25,396


307


(867)


24,836


5.38












   Mortgage-backed agency securities:











   Fixed rate pass-through


222,573


2,926


(12,641)


212,858


6.26

   Variable rate pass-through


3,905


57


(4)


3,958


4.01

   Fixed rate agency CMOs


835,445


3,801


(113,373)


725,873


5.22

   Variable rate agency CMOs


45,500


44


(213)


45,331


7.68

   Total mortgage-backed agency securities


1,107,423


6,828


(126,231)


988,020


5.55

   Total marketable securities available-for-sale


$         1,248,104


7,718


(143,954)


1,111,868


5.79












Marketable securities held-to-maturity











Government sponsored











Due after one year through five years


$            109,460


—


(10,520)


98,940


3.65

Due after five years through ten years


15,000


—


(1,923)


13,077


5.04












   Mortgage-backed agency securities:











   Fixed rate pass-through


136,439


—


(16,184)


120,255


4.76

   Variable rate pass-through


387


—


—


387


3.00

   Fixed rate agency CMOs


504,957


—


(65,502)


439,455


5.66

   Variable rate agency CMOs


529


—


(2)


527


5.01

   Total mortgage-backed agency securities


642,312


—


(81,688)


560,624


5.47

   Total marketable securities held-to-maturity


$            766,772


—


(94,131)


672,641


5.20

 

Northwest Bancshares, Inc. and Subsidiaries

Borrowed Funds (Unaudited)

(dollars in thousands)



September 30, 2024


Amount


Average rate

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

$                        175,000


5.15 %





Collateralized borrowings, due within one year

21,624


1.59 %

Collateral received, due within one year

7,750


5.72 %

Subordinated debentures, net of issuance costs

114,451


4.28 %

Junior subordinated debentures

129,769


7.49 %

      Total borrowed funds *

$                        448,594


5.44 %



*       

As of September 30, 2024, the Company had $3.3 billion of additional borrowing capacity available with the FHLB of Pittsburgh, including a $250 million overnight line of credit, which has no balance as of September 30, 2024, as well as $500 million of borrowing capacity available with the Federal Reserve Bank and $105 million with two correspondent banks.

 

Northwest Bancshares, Inc. and Subsidiaries

Analysis of Loan Portfolio by Loan Sector (Unaudited)


Commercial real estate loans outstanding

The following table provides the various loan sectors in our commercial real estate portfolio at September 30, 2024:


Property type


Percent of portfolio

5 or more unit dwelling


16.6 %

Retail Building


11.5

Nursing Home


11.2

Commercial office building - non-owner occupied


8.9

Manufacturing & industrial building


5.4

Warehouse/storage building


5.1

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


4.3

Commercial office building - owner occupied


4.0

Multi-use building - commercial, retail and residential


3.9

Multi-use building - office and warehouse


3.1

Other medical facility


3.0

Single family dwelling


2.6

Student housing


2.1

Hotel/motel


2.1

Agricultural real estate


2.0

All other


14.2

   Total


100.0 %


The following table describes the collateral of our commercial real estate portfolio by state at September 30, 2024:


State


Percent of portfolio

New York


33.9 %

Pennsylvania


29.3

Ohio


19.8

Indiana


8.9

All other


8.1

   Total


100.0 %

 

Northwest Bancshares, Inc. and Subsidiaries

Asset Quality (Unaudited)

(dollars in thousands)



September 30,
2024


June 30,
2024


March 31,
2024


December 31,
2023


September 30,
2023

Nonaccrual loans current:










Residential mortgage loans

$           1,585


1,563


1,351


959


1,951

Home equity loans

1,239


1,088


974


871


947

Consumer loans

1,229


1,268


1,295


1,051


1,049

Commercial real estate loans

36,735


66,181


66,895


64,603


44,639

Commercial loans

1,922


788


934


1,182


1,369

Total nonaccrual loans current

$         42,710


70,888


71,449


68,666


49,955

Nonaccrual loans delinquent 30 days to 59 days:










Residential mortgage loans

$               37


100


1,454


933


48

Home equity loans

157


260


125


174


92

Consumer loans

227


305


294


225


274

Commercial real estate loans

362


699


574


51


1,913

Commercial loans

444


183


161


139


90

Total nonaccrual loans delinquent 30 days to 59 days

$           1,227


1,547


2,608


1,522


2,417

Nonaccrual loans delinquent 60 days to 89 days:










Residential mortgage loans

$              549


578


—


511


66

Home equity loans

87


234


488


347


319

Consumer loans

484


603


381


557


312

Commercial real estate loans

207


2,243


52


831


212

Commercial loans

48


8,088


201


56


291

Total nonaccrual loans delinquent 60 days to 89 days

$           1,375


11,746


1,122


2,302


1,200

Nonaccrual loans delinquent 90 days or more:










Residential mortgage loans

$           5,370


4,162


4,304


6,324


7,695

Home equity loans

2,558


2,473


2,822


3,100


2,073

Consumer loans

3,265


2,433


2,659


3,212


2,463

Commercial real estate loans

6,167


5,849


6,931


6,488


8,416

Commercial loans

14,156


3,061


3,165


2,770


2,435

Total nonaccrual loans delinquent 90 days or more

$         31,516


17,978


19,881


21,894


23,082

Total nonaccrual loans

$         76,828


102,159


95,060


94,384


76,654

Total nonaccrual loans

$         76,828


102,159


95,060


94,384


76,654

Loans 90 days past due and still accruing

1,045


2,511


2,452


2,698


728

Nonperforming loans

77,873


104,670


97,512


97,082


77,382

Real estate owned, net

76


74


50


104


363

Nonperforming assets

$         77,949


104,744


97,562


97,186


77,745











Nonperforming loans to total loans

0.69 %


0.92 %


0.85 %


0.85 %


0.68 %

Nonperforming assets to total assets

0.54 %


0.73 %


0.67 %


0.67 %


0.54 %

Allowance for credit losses to total loans

1.11 %


1.10 %


1.09 %


1.10 %


1.10 %

Allowance for credit losses to nonperforming loans

161.56 %


119.49 %


128.08 %


129.01 %


161.33 %

 

Northwest Bancshares, Inc. and Subsidiaries

Loans by Credit Quality Indicators (Unaudited) 

(dollars in thousands)


At September 30, 2024


Pass


Special

   mention *


Substandard **


Doubtful


Loss


Loans

receivable

Personal Banking:













Residential mortgage loans


$       3,246,727


—


11,431


—


—


3,258,158

Home equity loans


1,162,951


—


4,251


—


—


1,167,202

Consumer loans


1,992,110


—


5,922


—


—


1,998,032

Total Personal Banking


6,401,788


—


21,604


—


—


6,423,392

Commercial Banking:













Commercial real estate loans


2,634,987


87,693


271,699


—


—


2,994,379

Commercial loans


1,808,433


51,714


26,640


—


—


1,886,787

Total Commercial Banking


4,443,420


139,407


298,339


—


—


4,881,166

Total loans


$     10,845,208


139,407


319,943


—


—


11,304,558

At June 30, 2024













Personal Banking:













Residential mortgage loans


$       3,312,368


—


11,700


—


—


3,324,068

Home equity loans


1,176,187


—


4,299


—


—


1,180,486

Consumer loans


2,074,869


—


5,189


—


—


2,080,058

Total Personal Banking


6,563,424


—


21,188


—


—


6,584,612

Commercial Banking:













Commercial real estate loans


2,682,766


130,879


213,993


—


—


3,027,638

Commercial loans


1,673,052


47,400


21,662


—


—


1,742,114

Total Commercial Banking


4,355,818


178,279


235,655


—


—


4,769,752

Total loans


$     10,919,242


178,279


256,843


—


—


11,354,364

At March 31, 2024













Personal Banking:













Residential mortgage loans


$       3,370,307


—


12,541


—


—


3,382,848

Home equity loans


1,191,957


—


4,650


—


—


1,196,607

Consumer loans


2,113,050


—


5,317


—


—


2,118,367

Total Personal Banking


6,675,314


—


22,508


—


—


6,697,822

Commercial Banking:













Commercial real estate loans


2,714,857


131,247


182,424


—


—


3,028,528

Commercial loans


1,698,519


52,461


23,916


—


—


1,774,896

Total Commercial Banking


4,413,376


183,708


206,340


—


—


4,803,424

Total loans


$     11,088,690


183,708


228,848


—


—


11,501,246

At December 31, 2023













Personal Banking:













Residential mortgage loans


$       3,413,846


—


14,339


—


—


3,428,185

Home equity loans


1,223,097


—


4,761


—


—


1,227,858

Consumer loans


2,120,216


—


5,811


—


—


2,126,027

Total Personal Banking


6,757,159


—


24,911


—


—


6,782,070

Commercial Banking:













Commercial real estate loans


2,670,510


124,116


179,384


—


—


2,974,010

Commercial loans


1,637,879


6,678


14,172


—


—


1,658,729

Total Commercial Banking


4,308,389


130,794


193,556


—


—


4,632,739

Total loans


$     11,065,548


130,794


218,467


—


—


11,414,809

At September 30, 2023













Personal Banking:













Residential mortgage loans


$       3,459,251


—


13,512


—


—


3,472,763

Home equity loans


1,254,985


—


3,780


—


—


1,258,765

Consumer loans


2,150,464


—


4,655


—


—


2,155,119

Total Personal Banking


6,864,700


—


21,947


—


—


6,886,647

Commercial Banking:













Commercial real estate loans


2,632,472


123,935


166,610


—


—


2,923,017

Commercial loans


1,476,833


3,690


20,086


—


—


1,500,609

Total Commercial Banking


4,109,305


127,625


186,696


—


—


4,423,626

Total loans


$     10,974,005


127,625


208,643


—


—


11,310,273



*         

Includes $2.9 million, $2.5 million, $2.4 million, $7.8 million, and $6.9 million of acquired loans at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

**       

Includes $26.0 million, $24.3 million, $27.2 million, $20.3 million, and $28.9 million of acquired loans at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

 

Northwest Bancshares, Inc. and Subsidiaries

Loan Delinquency (Unaudited)

(dollars in thousands)



September 30,
2024


*


June 30,
2024


*


March 31,
2024


*


December 31,
2023


*


September 30,
2023


*

(Number of loans and dollar amount of loans)






























Loans delinquent 30 days to 59 days:






























Residential mortgage loans

16


$       685


— %


12


$       616


— %


351


$  38,502


1.1 %


307


$   30,041


0.9 %


6


$       573


— %

Home equity loans

112


3,907


0.3 %


104


3,771


0.3 %


113


4,608


0.4 %


121


5,761


0.5 %


112


4,707


0.4 %

Consumer loans

801


10,777


0.5 %


742


10,372


0.5 %


737


9,911


0.5 %


896


11,211


0.5 %


733


9,874


0.5 %

Commercial real estate loans

21


5,919


0.2 %


21


4,310


0.1 %


25


6,396


0.2 %


23


3,204


0.1 %


22


3,411


0.1 %

Commercial loans

34


3,260


0.2 %


59


4,366


0.3 %


62


3,091


0.2 %


59


4,196


0.3 %


52


2,847


0.2 %

Total loans delinquent 30 days to 59 days

984


$  24,548


0.2 %


938


$  23,435


0.2 %


1,288


$  62,508


0.5 %


1,406


$  54,413


0.5 %


925


$  21,412


0.2 %































Loans delinquent 60 days to 89 days:






























Residential mortgage loans

75


$    9,027


0.3 %


70


$    8,223


0.2 %


3


$         70


— %


69


$    7,796


0.2 %


56


$    5,395


0.2 %

Home equity loans

27


882


0.1 %


35


1,065


0.1 %


26


761


0.1 %


37


982


0.1 %


40


1,341


0.1 %

Consumer loans

296


3,600


0.2 %


295


3,198


0.2 %


231


2,545


0.1 %


322


3,754


0.2 %


236


2,707


0.1 %

Commercial real estate loans

11


7,643


0.3 %


9


3,155


0.1 %


5


807


— %


9


1,031


— %


13


1,588


0.1 %

Commercial loans

19


753


— %


22


8,732


0.5 %


27


1,284


0.1 %


16


703


— %


15


981


0.1 %

Total loans delinquent 60 days to 89 days

428


$  21,905


0.2 %


431


$  24,373


0.2 %


292


$   5,467


— %


453


$  14,266


0.1 %


360


$  12,012


0.1 %































Loans delinquent 90 days or more: **






























Residential mortgage loans

52


$   5,370


0.2 %


53


$    5,553


0.2 %


50


$    5,813


0.2 %


70


$    7,995


0.2 %


79


$    7,695


0.2 %

Home equity loans

67


2,558


0.2 %


51


2,506


0.2 %


71


2,823


0.2 %


81


3,126


0.3 %


73


2,206


0.2 %

Consumer loans

402


3,983


0.2 %


358


3,012


0.1 %


398


3,345


0.2 %


440


3,978


0.2 %


357


3,020


0.1 %

Commercial real estate loans

13


6,167


0.2 %


19


6,034


0.2 %


22


6,931


0.2 %


27


6,712


0.2 %


27


8,416


0.3 %

Commercial loans

85


14,484


0.8 %


72


3,385


0.2 %


62


3,421


0.2 %


53


2,780


0.2 %


39


2,472


0.2 %

Total loans delinquent 90 days or more

619


$  32,562


0.3 %


553


$  20,490


0.2 %


603


$  22,333


0.2 %


671


$  24,591


0.2 %


575


$  23,809


0.2 %































Total loans delinquent

2,031


$  79,015


0.7 %


1,922


$  68,298


0.6 %


2,183


$  90,308


0.8 %


2,530


$  93,270


0.8 %


1,860


$  57,233


0.5 %



*   

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

**   

Includes purchased credit deteriorated loans of $0.2 million, $0.1 million, $0.4 million, $0.6 million, and $1.4 million at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for Credit Losses (Unaudited)

(dollars in thousands)



Quarter ended


September 30,
2024


June 30,
2024


March 31,
2024


December 31,
2023


September 30,
2023

Beginning balance

$      125,070


124,897


125,243


124,841


124,423

Provision

5,727


2,169


4,234


3,801


3,983

Charge-offs residential mortgage

(255)


(252)


(162)


(266)


(171)

Charge-offs home equity

(890)


(237)


(412)


(133)


(320)

Charge-offs consumer

(3,560)


(2,561)


(4,573)


(3,860)


(3,085)

Charge-offs commercial real estate

(475)


(500)


(349)


(742)


(484)

Charge-offs commercial

(1,580)


(1,319)


(1,163)


(806)


(1,286)

Recoveries

1,776


2,873


2,079


2,408


1,781

Ending balance

$      125,813


125,070


124,897


125,243


124,841

Net charge-offs to average loans, annualized

0.18 %


0.07 %


0.16 %


0.12 %


0.13 %

 

Nine months ended September 30,


2024


2023

Beginning balance

$                    125,243


118,036

ASU 2022-02 Adoption

—


426

Provision

12,130


14,863

Charge-offs residential mortgage

(669)


(923)

Charge-offs home equity

(1,539)


(719)

Charge-offs consumer

(10,694)


(8,591)

Charge-offs commercial real estate

(1,324)


(1,624)

Charge-offs commercial

(4,062)


(3,360)

Recoveries

6,728


6,733

Ending balance

$                    125,813


124,841

Net charge-offs to average loans, annualized

0.14 %


0.10 %

 

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, 2024


June 30, 2024


March 31, 2024


December 31, 2023


September 30, 2023


Average

balance


Interest


Avg.
yield/
cost


Average

balance


Interest


Avg.

yield/

cost


Average

balance


Interest


Avg.

yield/

cost 


Average

balance


Interest


Avg.

yield/

cost


Average

balance


Interest


Avg.

yield/

cost

Assets:






























Interest-earning assets:






























Residential mortgage loans

$  3,286,316


31,537


3.84 %


$  3,342,749


32,182


3.85 %


$  3,392,524


32,674


3.85 %


$  3,442,308


32,739


3.80 %


$  3,476,446


32,596


3.75 %

Home equity loans

1,166,866


17,296


5.90 %


1,183,497


17,303


5.88 %


1,205,273


17,294


5.77 %


1,238,420


17,590


5.64 %


1,264,134


17,435


5.47 %

Consumer loans

1,955,988


26,034


5.29 %


2,048,396


26,334


5.17 %


2,033,620


25,033


4.95 %


2,055,783


24,667


4.76 %


2,092,023


23,521


4.46 %

Commercial real estate loans

2,995,032


47,473


6.31 %


3,023,762


45,658


5.97 %


2,999,224


43,425


5.73 %


2,950,589


43,337


5.75 %


2,911,145


41,611


5.59 %

Commercial loans

1,819,400


34,837


7.62 %


1,770,345


33,229


7.43 %


1,714,667


31,857


7.35 %


1,564,617


28,801


7.20 %


1,447,211


26,239


7.09 %

Total loans receivable (a) (b) (d)

11,223,602


157,177


5.57 %


11,368,749


154,706


5.47 %


11,345,308


150,283


5.33 %


11,251,717


147,134


5.19 %


11,190,959


141,402


5.01 %

Mortgage-backed securities (c)

1,735,728


10,908


2.51 %


1,734,085


9,426


2.17 %


1,717,306


7,944


1.85 %


1,741,687


7,951


1.83 %


1,781,010


8,072


1.81 %

Investment securities (c) (d)

263,127


1,504


2.29 %


287,262


1,316


1.83 %


333,752


1,430


1.71 %


335,121


1,425


1.70 %


336,125


1,431


1.70 %

FHLB stock, at cost

20,849


394


7.51 %


25,544


498


7.84 %


32,249


607


7.57 %


35,082


665


7.52 %


37,722


668


7.03 %

Other interest-earning deposits

173,770


2,312


5.29 %


135,520


1,791


5.23 %


61,666


832


5.34 %


71,987


970


5.27 %


67,143


915


5.33 %

Total interest-earning assets

13,417,076


172,295


5.11 %


13,551,160


167,737


4.98 %


13,490,281


161,096


4.80 %


13,435,594


158,145


4.67 %


13,412,959


152,488


4.51 %

Noninterest-earning assets (e)

934,593






907,432






918,331






893,426






966,364





Total assets

$   14,351,669






$   14,458,592






$   14,408,612






$   14,329,020






$   14,379,323





Liabilities and shareholders' equity:






























Interest-bearing liabilities:






























Savings deposits (g)

$  2,151,933


6,680


1.23 %


$  2,144,278


5,957


1.12 %


$  2,122,035


5,036


0.95 %


$  2,102,320


4,045


0.76 %


$  2,116,759


2,695


0.51 %

Interest-bearing demand deposits (g)

2,567,682


7,452


1.15 %


2,555,863


6,646


1.05 %


2,538,823


5,402


0.86 %


2,573,634


4,921


0.76 %


2,569,229


4,086


0.63 %

Money market deposit accounts (g)

1,966,684


9,170


1.85 %


1,957,990


8,601


1.77 %


1,961,332


7,913


1.62 %


1,997,116


7,446


1.48 %


2,112,228


6,772


1.27 %

Time deposits (g)

2,830,737


30,896


4.34 %


2,832,720


31,550


4.48 %


2,697,983


29,335


4.37 %


2,447,335


24,187


3.92 %


2,164,559


18,136


3.32 %

Borrowed funds (f)

220,677


2,266


4.09 %


323,191


3,662


4.56 %


469,697


5,708


4.89 %


548,089


6,826


4.94 %


643,518


7,937


4.89 %

Subordinated debt

114,396


1,148


4.01 %


114,308


1,148


4.02 %


114,225


1,148


4.02 %


114,134


1,148


4.02 %


114,045


1,148


4.03 %

Junior subordinated debentures

129,727


2,467


7.56 %


129,663


2,449


7.47 %


129,597


2,459


7.51 %


129,532


2,512


7.59 %


129,466


2,456


7.42 %

Total interest-bearing liabilities

9,981,836


60,079


2.39 %


10,058,013


60,013


2.40 %


10,033,692


57,001


2.28 %


9,912,160


51,085


2.04 %


9,849,804


43,230


1.74 %

Noninterest-bearing demand deposits (g)

2,579,775






2,595,511






2,567,781






2,675,788






2,757,091





Noninterest-bearing liabilities

217,161






263,634






257,269






234,177






257,141





Total liabilities

12,778,772






12,917,158






12,858,742






12,822,125






12,864,036





Shareholders' equity

1,572,897






1,541,434






1,549,870






1,506,895






1,515,287





Total liabilities and shareholders' equity

$   14,351,669






$   14,458,592






$   14,408,612






$   14,329,020






$   14,379,323





Net interest income/Interest rate spread FTE



112,216


2.72 %




107,724


2.58 %




104,095


2.52 %




107,060


2.63 %




109,258


2.77 %

Net interest-earning assets/Net interest margin FTE

$  3,435,240




3.33 %


$  3,493,147




3.20 %


$  3,456,589




3.10 %


$  3,523,434




3.16 %


$  3,563,155




3.23 %

Tax equivalent adjustment (d)



914






883






857






758






890



Net interest income, GAAP basis



111,302






106,841






103,238






106,302






108,368



Ratio of interest-earning assets to interest-bearing liabilities

1.34X






1.35X






1.34X






1.36X






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 and collateralized borrowings.

(g)   

Average cost of deposits were 1.78%, 1.76%, 1.61%, 1.37%, and 1.07%, respectively, and average cost of Interest-bearing deposits were 2.27%, 2.24%, 2.06%, 1.77%, and 1.40%, 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,


2024


2023


Average

balance


Interest


Avg.

yield/

cost (h)


Average

balance


Interest


Avg.

yield/

cost (h)

Assets












Interest-earning assets:












Residential mortgage loans

$     3,340,332


96,392


3.85 %


$     3,485,130


97,090


3.71 %

Home equity loans

1,185,145


51,893


5.85 %


1,273,878


50,467


5.30 %

Consumer loans

2,012,461


77,401


5.14 %


2,119,717


66,977


4.22 %

Commercial real estate loans

3,005,966


136,556


6.07 %


2,857,555


117,074


5.40 %

Commercial loans

1,768,325


99,923


7.55 %


1,312,750


67,465


6.78 %

Loans receivable (a) (b) (d)

11,312,229


462,165


5.46 %


11,049,030


399,073


4.83 %

Mortgage-backed securities (c)

1,729,064


28,278


2.18 %


1,849,567


24,935


1.80 %

Investment securities (c) (d)

294,598


4,251


1.92 %


364,956


4,909


1.79 %

FHLB stock, at cost

26,195


1,499


7.64 %


40,945


2,202


7.19 %

Other interest-earning deposits

124,037


4,935


5.31 %


64,560


1,931


4.00 %

Total interest-earning assets

13,486,123


501,128


4.96 %


13,369,058


433,050


4.33 %

Noninterest-earning assets (e)

919,969






880,799

















Total assets

$   14,406,092






$   14,249,857

















Liabilities and shareholders' equity












Interest-bearing liabilities:












Savings deposits (g)

$     2,139,461


17,673


1.10 %


$     2,163,564


4,777


0.30 %

Interest-bearing demand deposits (g)

2,554,172


19,501


1.02 %


2,550,433


6,684


0.35 %

Money market deposit accounts (g)

1,962,019


25,684


1.75 %


2,246,422


17,289


1.03 %

Time deposits (g)

2,787,306


91,780


4.40 %


1,733,428


35,993


2.78 %

Borrowed funds (f)

337,427


11,636


4.61 %


740,011


26,077


4.71 %

Subordinated debt

114,310


3,444


4.02 %


113,958


3,444


4.03 %

Junior subordinated debentures

129,662


7,375


7.60 %


129,401


6,889


7.02 %

Total interest-bearing liabilities

10,024,357


177,093


2.36 %


9,677,217


101,153


1.40 %

Noninterest-bearing demand deposits (g)

2,581,018






2,822,178





Noninterest-bearing liabilities

245,917






239,034

















Total liabilities

12,851,292






12,738,429

















Shareholders' equity

1,554,800






1,511,428

















Total liabilities and shareholders' equity

$   14,406,092






$   14,249,857

















Net interest income/Interest rate spread



324,035


2.60 %




331,897


2.93 %













Net interest-earning assets/Net interest margin

$     3,461,766




3.21 %


$     3,691,841




3.32 %













Tax equivalent adjustment (d)



2,654






2,516



Net interest income, GAAP basis



321,381






329,381















Ratio of interest-earning assets to interest-bearing liabilities

1.35X






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)   

Average cost of deposits were 1.72% and 0.75%, respectively and average cost of Interest-bearing deposits were 2.19% and 1.00%, respectively.

 

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SOURCE Northwest Bancshares, Inc.