22.01.2018 16:52:00

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

WARREN, Pa., Jan. 22, 2018 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2017 of $22.1 million, or $0.22 per diluted share. This represents a decrease of $2.4 million, or 9.6%, compared to the same quarter last year when net income was $24.5 million or $0.24 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended December 31, 2017 were 7.31% and 0.94% compared to 8.37% and 1.01% for the same quarter last year. 

Northwest Bank

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.17 per share payable on February 15, 2018, to shareholders of record as of February 1, 2018. This represents a 6.25% increase over the prior quarter and is the 93rd consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of December 31, 2017, this dividend represents an annualized yield of approximately 4.1%.

In making this announcement, William J. Wagner, Chairman and CEO, noted, "2017 was a year of significant restructuring for our company. With a goal of reducing operating expenses, improving efficiency and narrowing our business focus, we divested our Maryland offices, closed our consumer finance subsidiary, sold our retirement services business, consolidated our wealth management platforms and achieved full integration of our recent acquisitions in Ohio and New York. While these initiatives negatively impacted earnings in 2017, we expect that they will provide a meaningful reduction in our expense ratios in the years ahead.  We were pleased to realize continued improvement in net interest margin during 2017 resulting primarily from commercial loan growth of 5% accompanied by 11% growth in noninterest bearing checking accounts. With that, our current margin of 3.93% represents an historic high for our institution. Looking ahead, our company will be primarily focused on improving loan growth and operating efficiency in an effort to continue to improve our company's return on assets."

Net interest income increased by $1.3 million, or 1.6%, to $84.2 million for the quarter ended December 31, 2017, from $82.9 million for the quarter ended December 31, 2016. This increase is due primarily to a $1.5 million, or 1.7%, increase in interest income on loans receivable and an $850,000, or 39.2% increase in interest income on mortgage-backed securities. These increases were primarily due to increases of $16.8 million and $98.3 million in the average balances of loans and mortgage-backed securities, respectively. Additionally, the average yield on loans and mortgage-backed securities increased by 5 and 29 basis points, respectively, over the prior year.

The provision for loan losses increased by $4.4 million, to $6.5 million for the quarter ended December 31, 2017, from $2.1 million for the quarter ended December 31, 2016. This increase is due primarily to higher provisions for consumer loans, which were related to the July 2017 closure of the Company's consumer finance subsidiary, as credit quality in other components of the loan portfolio improved. The percentage of total delinquent loans to total loans decreased to 1.51% at December 31, 2017 from 1.61% at December 31, 2016 and total nonaccrual loans decreased by $15.0 million, or 19.0%, to $64.5 million at December 31, 2017 from $79.5 million at December 31, 2016.

Noninterest income decreased by $1.9 million, or 7.7%, to $22.9 million for the quarter ended December 31, 2017, from $24.8 million for the quarter ended December 31, 2016. Contributing to this decrease was a $2.1 million decrease in mortgage banking income relating to a substantial decrease in the amount of loans sold into the secondary market this year versus the prior year.  Additionally, the Company realized a net loss of $369,000 on the sale of investments during the quarter while realizing a net profit of $213,000 a year ago. The loss incurred in the current year related to the sale of two pooled trust preferred securities to take advantage of the recent changes in the federal tax rates. Partially offsetting these decreases was an increase in income from bank owned life insurance of $1.0 million as a result of death benefits received during the quarter.

Noninterest expense increased by $3.1 million, or 4.6%, to $71.9 million for the quarter ended December 31, 2017, from $68.8 million for the quarter ended December 31, 2016. This increase resulted primarily from a $2.2 million, or 6.1%, increase in compensation and employee benefits due primarily to increases in the cost of health insurance and other employee benefits. Also contributing to the increase was an increase of $857,000 in professional services due primarily to ongoing efforts to comply with the CECL standard effective January 1, 2020.

Income tax expense decreased by $5.8 million, or 46.8%, to $6.6 million for the quarter ended December 31, 2017, from $12.4 million for the quarter ended December 31, 2016. This decrease is due primarily to a decrease in income before taxes of $8.1 million and the impact of the Tax Cuts and Jobs Act of 2017, which was signed into law on December 22, 2017. When enacted, the tax law change will decrease the corporate tax rate from 35.0% to 21.0%. As a result, the value of the Company's net deferred tax liability decreased by $3.1 million, which had the effect of decreasing current period tax expense.

Net income for the year ended December 31, 2017 was $94.5 million, or $0.92 per diluted share, which represents an increase of $44.8 million, or 90.2%, compared to the year ended December 31, 2016, when net income was $49.7 million, or $0.49 per diluted share. The returns on average shareholders' equity and average assets for the year ended December 31, 2017 were 7.95% and 0.99%, respectively, compared to 4.28% and 0.55% for the same period last year.  This increase is due primarily to the sale of the Company's Maryland offices at a profit of $17.2 million during 2017 and also to a $37.0 million penalty incurred from the prepayment of FHLB borrowings during 2016.

Non-GAAP net income for the year ended December 31, 2017, which excludes the after-tax impact of the gain on sale of the Maryland offices of $10.3 million and after-tax restructuring expenses of $2.7 million as well as the aforementioned $3.1 million tax benefit was $83.7 million, or $0.83 per diluted share. Non-GAAP net income for the year ended December 31, 2016, which excludes the after-tax impact of the FHLB prepayment penalty, restructuring and acquisition expenses, and ESOP termination expenses totaling $32.6 million, was $82.3 million, or $0.82 per diluted share. For more information, see "Reconciliation of Non-GAAP to GAAP Net Income" within this press release.

Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. Northwest operates 162 full-service community banking offices and ten free standing drive-through facilities in Pennsylvania, New York, and Ohio. Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.

Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; and (7) increased risk associated with commercial real-estate and business loans. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.

 

 


Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(Dollars in thousands, except per share amounts)



December 31,
 2017


September 30,
 2017


December 31,
 2016

Assets






Cash and cash equivalents

$

77,710



165,676



389,867


Marketable securities available-for-sale (amortized cost of $800,094, $867,311 and $825,552 respectively)

792,535



869,481



826,200


Marketable securities held-to-maturity (fair value of $29,667, $32,282 and $20,426 respectively)

29,678



31,961



19,978


Total cash and cash equivalents and marketable securities

899,923



1,067,118



1,236,045








Residential mortgage loans held-for-sale

3,128



1,382



9,625


Residential mortgage loans

2,773,075



2,741,844



2,688,541


Home equity loans

1,310,355



1,313,435



1,345,370


Consumer loans

671,389



673,920



642,961


Commercial real estate loans

2,454,726



2,398,886



2,342,089


Commercial loans

580,736



596,671



528,761


Total loans receivable

7,793,409



7,726,138



7,557,347


Allowance for loan losses

(56,795)



(56,927)



(60,939)


Loans receivable, net

7,736,614



7,669,211



7,496,408








Assets held-for-sale

—



—



152,528


Federal Home Loan Bank stock, at cost

11,733



7,984



7,390


Accrued interest receivable

23,352



22,802



21,699


Real estate owned, net

5,666



5,462



4,889


Premises and equipment, net

151,944



152,761



161,185


Bank owned life insurance

171,547



173,096



171,449


Goodwill

307,420



307,420



307,420


Other intangible assets

25,669



27,244



32,433


Other assets

30,066



26,716



32,194


Total assets

$

9,363,934



9,459,814



9,623,640








Liabilities and Shareholders' equity






Liabilities






Noninterest-bearing demand deposits

$

1,610,409



1,625,189



1,448,972


Interest-bearing demand deposits

1,442,928



1,451,818



1,428,317


Money market deposit accounts

1,707,450



1,759,395



1,841,567


Savings deposits

1,653,579



1,669,782



1,622,879


Time deposits

1,412,623



1,435,861



1,540,586


Total deposits

7,826,989



7,942,045



7,882,321








Liabilities held-for-sale

—



—



215,657


Borrowed funds

108,238



115,388



142,899


Advances by borrowers for taxes and insurance

40,825



21,864



36,879


Accrued interest payable

460



518



635


Other liabilities

68,485



62,939



63,373


Junior subordinated debentures

111,213



111,213



111,213


Total liabilities

8,156,210



8,253,967



8,452,977








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, shares, 102,687,811 shares, 102,565,667, and 101,699,406 issued and outstanding, respectively

1,027



1,026



1,017


Paid-in-capital

730,719



728,163



718,834


Retained earnings

508,058



502,265



478,803


Accumulated other comprehensive loss

(32,080)



(25,607)



(27,991)


Total shareholders' equity

1,207,724



1,205,847



1,170,663


Total liabilities and shareholders' equity

$

9,363,934



$

9,459,814



$

9,623,640








Equity to assets

12.90

%


12.75

%


12.16

%

Tangible common equity to assets

9.68

%


9.55

%


8.95

%

Book value per share

$

11.76



11.76



11.51


Tangible book value per share

$

8.52



8.49



8.17


Closing market price per share

$

16.73



17.27



18.03


Full time equivalent employees

2,106



2,137



2,306


Number of banking offices

172



173



176














 

 

 


Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share amounts)



Quarter ended


December 31,


September 30,


June 30,


March 31,


December 31,


2017


2017


2017


2017


2016

Interest income:










Loans receivable

$

87,154



85,373



84,714



82,751



85,669


Mortgage-backed securities

3,016



3,118



2,987



2,222



2,166


Taxable investment securities

805



957



981



1,006



988


Tax-free investment securities

449



476



529



569



625


FHLB dividends

78



63



50



59



285


Interest-earning deposits

59



244



536



660



300


Total interest income

91,561



90,231



89,797



87,267



90,033












Interest expense:










Deposits

5,971



5,795



5,826



5,465



5,859


Borrowed funds

1,350



1,199



1,240



1,225



1,232


Total interest expense

7,321



6,994



7,066



6,690



7,091












Net interest income

84,240



83,237



82,731



80,577



82,942


Provision for loan losses

6,525



3,027



5,562



4,637



2,145


Net interest income after provision for loan losses

77,715



80,210



77,169



75,940



80,797












Noninterest income:










Gain/(loss) on sale of investments

(369)



1,497



3



17



213


Service charges and fees

12,527



12,724



12,749



11,717



12,406


Trust and other financial services income

4,290



4,793



4,600



4,304



4,131


Insurance commission income

1,874



1,992



2,353



2,794



2,499


Gain/ (loss) on real estate owned, net

(307)



(193)



(230)



(67)



164


Income from bank owned life insurance

2,295



1,078



1,652



1,068



1,281


Mortgage banking income

225



519



434



240



2,344


Gain on sale of offices

—



—



17,186



—



—


Other operating income

2,370



2,184



2,730



1,431



1,781


Total noninterest income

22,905



24,594



41,477



21,504



24,819












Noninterest expense:










Compensation and employee benefits

38,776



36,039



37,658



37,755



36,562


Premises and occupancy costs

7,293



6,951



7,103



7,516



7,228


Office operations

4,011



3,939



4,170



4,222



4,395


Collections expense

1,179



568



553



549



437


Processing expenses

9,888



9,650



9,639



9,909



9,429


Marketing expenses

2,125



2,488



2,846



2,148



2,181


Federal deposit insurance premiums

724



771



856



1,167



475


Professional services

2,945



2,321



2,452



2,575



2,088


Amortization of intangible assets

1,575



1,691



1,749



1,749



1,806


Real estate owned expense

195



310



217



282



192


Restructuring/ acquisition expense

164



1,398



2,634



223



1,009


Other expense

3,021



2,673



3,385



3,551



2,959


Total noninterest expense

71,896



68,799



73,262



71,646



68,761


Income before income taxes

28,724



36,005



45,384



25,798



36,855












Income tax expense

6,576



12,414



14,402



8,052



12,361


Net income

$

22,148



23,591



30,982



17,746



24,494












Basic earnings per share

$

0.22



0.23



0.31



0.18



0.24


Diluted earnings per share

$

0.22



0.23



0.30



0.17



0.24












Weighted average common shares outstanding - basic

101,293,307



101,163,534



100,950,772



100,653,277



100,219,370


Weighted average common shares outstanding - diluted

102,643,726



102,564,476



102,449,693



102,480,549



102,089,892












Annualized return on average equity

7.31

%


7.81

%


10.48

%


6.15

%


8.37

%

Annualized return on average assets

0.94

%


0.99

%


1.30

%


0.75

%


1.01

%

Annualized return on tangible common equity

10.05

%


10.74

%


14.44

%


8.57

%


11.73

%











Efficiency ratio *

65.48

%


60.94

%


64.36

%


68.25

%


61.20

%

Annualized noninterest expense to average assets *

2.97

%


2.76

%


2.89

%


2.94

%


2.73

%

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

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share amounts)



Year ended December 31,


2017


2016

Interest income:




Loans receivable

$

339,992



329,039


Mortgage-backed securities

11,343



8,540


Taxable investment securities

3,749



3,409


Tax-free investment securities

2,023



2,732


FHLB dividends

250



1,371


Interest-earning deposits

1,499



543


Total interest income

358,856



345,634






Interest expense:




Deposits

23,057



23,465


Borrowed funds

5,014



14,834


Total interest expense

28,071



38,299






Net interest income

330,785



307,335


Provision for loan losses

19,751



13,542


Net interest income after provision for loan losses

311,034



293,793






Noninterest income:




Gain on sale of investments

1,148



625


Service charges and fees

49,717



44,113


Trust and other financial services income

17,987



14,103


Insurance commission income

9,013



10,522


Loss on real estate owned, net

(797)



(39)


Income from bank owned life insurance

6,093



5,361


Mortgage banking income

1,418



4,894


Gain on sale of offices

17,186



—


Other operating income

8,715



5,781


Total noninterest income

110,480



85,360






Noninterest expense:




Compensation and employee benefits

150,228



140,927


Premises and occupancy costs

28,863



26,134


Office operations

16,342



14,898


Collections expense

2,849



2,431


Processing expenses

39,086



34,859


Marketing expenses

9,607



8,852


Federal deposit insurance premiums

3,518



4,404


Professional services

10,293



7,865


Amortization of intangible assets

6,764



4,259


Real estate owned expense

1,004



1,004


Restructuring/ acquisition expense

4,419



12,213


FHLB prepayment penalty

—



36,978


Other expense

12,630



13,014


Total noninterest expense

285,603



307,838


Income before income taxes

135,911



71,315






Income tax expense

41,444



21,648


Net income

$

94,467



$

49,667






Basic earnings per share

$

0.94



0.50


Diluted earnings per share

$

0.92



0.49






Weighted average common shares outstanding - basic

101,015,083


99,439,174

Weighted average common shares outstanding - diluted

102,564,905


100,664,688





Annualized return on average equity

7.95

%


4.28

%

Annualized return on average assets

0.99

%


0.55

%

Annualized return on tangible common equity

10.80

%


5.98

%





Efficiency ratio *

64.71

%


64.78

%

Annualized noninterest expense to average assets *

2.89

%


2.79

%










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

 

Northwest Bancshares, Inc. and Subsidiaries

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

(Dollars in thousands, except per share amounts)




Year ended

December 31,



2017


2016

Operating results (non-GAAP):





Net interest income


$

330,785



307,335


Provision for loan losses


19,751



13,542


Noninterest income


93,294



85,360


Noninterest expense


281,184



253,510


Income taxes


39,409



43,379


Net operating income (non-GAAP)


$

83,735



82,264


Diluted earnings per share (non-GAAP)


$

0.83



0.82







Average equity


$

1,188,787



1,159,791


Average assets


9,502,518



9,111,587


Annualized ROE (non-GAAP)


7.04

%


7.09

%

Annualized ROA (non-GAAP)


0.88

%


0.90

%






Reconciliation of net operating income to net income:





Net operating income (non-GAAP)


$

83,735



82,264


Nonoperating income and expenses





Gain on sale of offices, net of tax


10,311



—


Restructuring/ acquisition expenses, net of tax


(2,651)



(7,330)


Stock-based compensation expense - ESOP termination, net of tax


—



(3,081)


FHLB prepayment penalty, net of tax


—



(22,186)


Tax benefit from the Tax Cuts and Jobs Act of 2017


3,072



—


Net income (GAAP)


$

94,467



49,667


Diluted earnings per share (GAAP)


$

0.92



0.49







Annualized ROE (GAAP)


7.95

%


4.28

%

Annualized ROA (GAAP)


0.99

%


0.55

%

 * The table summarizes the Company's results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude certain income and expenses, net of tax benefit and cost. The net tax effect was calculated using statutory tax rates of approximately 40%. The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.

 

 


Northwest Bancshares, Inc. and Subsidiaries

Asset quality (Unaudited)

(Dollars in thousands)



December 31,
 2017


September 30,
 2017


June 30,
 2017


March 31,
 2017


December 31,
2016

Nonaccrual loans current:










Residential mortgage loans

$

70



318



841



1,864



2,109


Home equity loans

615



439



158



1,244



1,451


Consumer finance loans

—



1



—



—



—


Consumer loans

317



259



379



633



520


Commercial real estate loans

10,080



10,646



16,189



13,347



13,955


Commercial loans

4,178



4,098



5,262



5,335



5,361


Total nonaccrual loans current

$

15,260



15,761



22,829



22,423



23,396












Nonaccrual loans delinquent 30 days to 59 days:










Residential mortgage loans

$

509



200



181



1,001



1,464


Home equity loans

167



466



164



328



422


Consumer finance loans

—



—



—



—



—


Consumer loans

239



200



169



218



400


Commercial real estate loans

1,928



597



474



1,970



3,478


Commercial loans

25



—



32



328



145


Total nonaccrual loans delinquent 30 days to 59 days

$

2,868



1,463



1,020



3,845



5,909












Nonaccrual loans delinquent 60 days to 89 days:










Residential mortgage loans

$

703



892



896



704



1,522


Home equity loans

874



499



326



408



440


Consumer finance loans

—



—



—



—



—


Consumer loans

500



405



342



242



366


Commercial real estate loans

1,104



5,895



2,233



540



2,027


Commercial loans

69



3



—



23



695


Total nonaccrual loans delinquent 60 days to 89 days

$

3,250



7,694



3,797



1,917



5,050












Nonaccrual loans delinquent 90 days or more:










Residential mortgage loans

$

13,509



11,785



11,637



11,911



13,169


Home equity loans

7,251



6,295



5,744



6,194



5,552


Consumer finance loans

199



332



536



471



743


Consumer loans

3,617



3,244



2,273



2,888



3,080


Commercial real estate loans

15,361



22,583



21,295



20,897



19,264


Commercial loans

3,140



4,177



3,642



2,744



3,373


Total nonaccrual loans delinquent 90 days or more

$

43,077



48,416



45,127



45,105



45,181












Total nonaccrual loans

$

64,455



73,334



72,773



73,290



79,536












Total nonaccrual loans

$

64,455



73,334



72,773



73,290



79,536


Loans 90 days past maturity and still accruing

502



398



182



265



649


Nonperforming loans

64,957



73,732



72,955



73,555



80,185


Real estate owned, net

5,666



5,462



6,030



6,242



4,889


Nonperforming assets

$

70,623



79,194



78,985



79,797



85,074












Nonaccrual troubled debt restructuring *

$

12,285



17,809



17,873



18,273



16,346


Accruing troubled debt restructuring

19,819



20,660



23,987



25,305



26,580


Total troubled debt restructuring

$

32,104



38,469



41,860



43,578



42,926












Nonperforming loans to total loans

0.83

%


0.95

%


0.95

%


0.97

%


1.06

%

Nonperforming assets to total assets

0.75

%


0.84

%


0.83

%


0.82

%


0.88

%

Allowance for loan losses to total loans

0.73

%


0.74

%


0.82

%


0.81

%


0.81

%

Allowance for loan losses to nonperforming loans

 

87.43

%


77.16

%


86.20

%


83.07

%


76.00

%

* Amounts included in nonperforming loans above.

 

 


 Northwest Bancshares, Inc. and Subsidiaries

Loans by credit quality indicators (Unaudited)

(Dollars in thousands)


At December 31, 2017


Pass


Special

mention *


Substandard **


Doubtful


Loss


Loans

receivable

Personal Banking:













Residential mortgage loans


$

2,758,465



—



17,738



—



—



2,776,203


Home equity loans


1,300,277



—



10,078



—



—



1,310,355


Consumer loans


666,629



—



4,760



—



—



671,389


Total Personal Banking


4,725,371



—



32,576



—



—



4,757,947


Commercial Banking:













Commercial real estate loans


2,216,326



83,537



154,863





—



2,454,726


Commercial loans


511,035



19,297



50,404





—



580,736


Total Commercial Banking


2,727,361



102,834



205,267



—



—



3,035,462


Total loans


$

7,452,732



102,834



237,843



—



—



7,793,409















At September 30, 2017













Personal Banking:













Residential mortgage loans


$

2,725,060



—



18,166



—



—



2,743,226


Home equity loans


1,302,036



—



11,399



—



—



1,313,435


Consumer loans


669,532



—



4,388



—



—



673,920


Total Personal Banking


4,696,628



—



33,953



—



—



4,730,581


Commercial Banking:













Commercial real estate loans


2,196,510



56,118



146,258



—



—



2,398,886


Commercial loans


526,824



18,924



50,923



—



—



596,671


Total Commercial Banking


2,723,334



75,042



197,181



—



—



2,995,557


Total loans


$

7,419,962



75,042



231,134



—



—



7,726,138















At June 30, 2017













Personal Banking:













Residential mortgage loans


$

2,718,866



—



16,916



—



—



2,735,782


Home equity loans


1,307,022



—



8,699



—



—



1,315,721


Consumer loans


655,149



—



2,976



—



—



658,125


Total Personal Banking


4,681,037



—



28,591



—



—



4,709,628


Commercial Banking:













Commercial real estate loans


2,178,996



67,826



149,841



—



—



2,396,663


Commercial loans


521,520



10,269



48,657



—



—



580,446


Total Commercial Banking


2,700,516



78,095



198,498



—



—



2,977,109


Total loans


$

7,381,553



78,095



227,089



—



—



7,686,737















At March 31, 2017













Personal Banking:













Residential mortgage loans


$

2,673,678



—



16,866



—



—



2,690,544


Home equity loans


1,311,707



—



9,212



—



—



1,320,919


Consumer loans


639,574



—



3,531



—



—



643,105


Total Personal Banking


4,624,959



—



29,609



—



—



4,654,568


Commercial Banking:













Commercial real estate loans


2,187,545



48,189



142,740



—



—



2,378,474


Commercial loans


474,662



12,226



43,158



—



—



530,046


Total Commercial Banking


2,662,207



60,415



185,898



—



—



2,908,520


Total loans


$

7,287,166



60,415



215,507



—



—



7,563,088















At December 31, 2016













Personal Banking:













Residential mortgage loans


$

2,680,107



—



18,059



—



—



2,698,166


Home equity loans


1,335,596



—



9,774



—



—



1,345,370


Consumer loans


639,044



—



3,917



—



—



642,961


Total Personal Banking


4,654,747



—



31,750



—



—



4,686,497


Commercial Banking:













Commercial real estate loans


2,153,328



43,724



145,037



—



—



2,342,089


Commercial loans


469,993



17,192



41,576



—



—



528,761


Total Commercial Banking


2,623,321



60,916



186,613



—



—



2,870,850


Total loans


$

7,278,068



60,916



218,363



—



—



7,557,347


* Includes $8.6 million $8.9 million, $9.7 million, $12.4 million, and $9.4 million of acquired loans at December 31, 2017, September 30, 2017,
June 30, 2017, March 31, 2017, and December 31, 2016, respectively.

** Includes $46.7 million, $48.2 million, $44.8 million, $45.3 million, and $39.1 million of acquired loans at December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Loan delinquency (Unaudited)

(Dollars in thousands)




December 31, 2017


*


September 30, 2017


*


June 30, 2017


*


March 31, 2017


*


December 31, 2016


*

(Number of loans and dollar amount of loans)































Loans delinquent 30 days to 59 days:































Residential mortgage loans


317



$

25,784



0.9

%


44



$

2,771



0.1

%


64



$

2,893



0.1

%


280



$

22,254



0.8

%


360



$

27,386



1.0

%

Home equity loans


218



7,461



0.6

%


191



7,330



0.6

%


111



4,058



0.3

%


125



4,586



0.4

%


179



6,805



0.5

%

Consumer finance loans


849



2,128



11.4

%


1,045



3,065



11.4

%


581



1,785



4.1

%


308



947



1.8

%


410



1,255



2.1

%

Consumer loans


1,295



10,912



1.7

%


1,119



9,510



1.5

%


818



6,793



1.1

%


714



6,210



1.1

%


1,087



8,613



1.5

%

Commercial real estate loans


53



8,315



0.3

%


27



5,753



0.2

%


38



4,629



0.2

%


60



9,364



0.4

%


61



10,377



0.4

%

Commercial loans


26



1,865



0.3

%


16



746



0.1

%


20



1,378



0.2

%


29



2,304



0.4

%


20



1,178



0.2

%

Total loans delinquent 30 days to 59 days


2,758



$

56,465



0.7

%


2,442



$

29,175



0.4

%


1,632



$

21,536



0.3

%


1,516



$

45,665



0.6

%


2,117



$

55,614



0.7

%
































Loans delinquent 60 days to 89 days:































Residential mortgage loans


75



$

6,235



0.2

%


84



$

7,196



0.3

%


72



$

6,320



0.2

%


28



$

1,594



0.1

%


80



$

6,227



0.2

%

Home equity loans


72



2,871



0.2

%


73



2,390



0.2

%


44



1,522



0.1

%


36



1,145



0.1

%


62



1,563



0.1

%

Consumer finance loans


412



1,113



6.0

%


831



2,190



8.1

%


276



759



1.7

%


164



475



0.9

%


235



766



1.3

%

Consumer loans


463



3,351



0.5

%


473



3,283



0.5

%


347



2,475



0.4

%


266



1,766



0.3

%


401



2,843



0.5

%

Commercial real estate loans


25



2,539



0.1

%


22



7,666



0.3

%


14



3,368



0.1

%


19



3,034



0.1

%


25



4,495



0.2

%

Commercial loans


10



441



0.1

%


9



196



—

%


9



199



—

%


10



499



0.1

%


21



2,081



0.4

%

Total loans delinquent 60 days to 89 days


1,057



$

16,550



0.2

%


1,492



$

22,921



0.3

%


762



$

14,643



0.2

%


523



$

8,513



0.1

%


824



$

17,975



0.2

%
































Loans delinquent 90 days or more: **































Residential mortgage loans


158



$

13,890



0.5

%


143



$

12,190



0.4

%


145



$

12,053



0.4

%


139



$

12,326



0.5

%


169



$

13,621



0.5

%

Home equity loans


177



7,349



0.6

%


150



6,397



0.5

%


126



5,800



0.4

%


143



6,258



0.5

%


155



5,756



0.4

%

Consumer finance loans


74



199



1.1

%


124



332



1.2

%


188



536



1.2

%


169



471



0.9

%


228



743



1.2

%

Consumer loans


719



3,627



0.6

%


428



3,254



0.5

%


299



2,285



0.4

%


363



2,901



0.5

%


418



3,095



0.5

%

Commercial real estate loans


109



16,284



0.7

%


113



23,310



1.0

%


108



22,044



0.9

%


106



23,009



1.0

%


101



21,270



0.9

%

Commercial loans


37



3,140



0.5

%


45



4,177



0.7

%


39



3,642



0.6

%


39



2,744



0.5

%


37



3,520



0.7

%

Total loans delinquent 90 days or more


1,274



$

44,489



0.6

%


1,003



$

49,660



0.6

%


905



$

46,360



0.6

%


959



$

47,709



0.6

%


1,108



$

48,005



0.6

%
































Total loans delinquent


5,089



$

117,504



1.5

%


4,937



$

101,756



1.3

%


3,299



$

82,539



1.1

%


2,998



$

101,887



1.3

%


4,049



$

121,594



1.5

%

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

** Includes purchased credit impaired loans of $1.4 million, $1.2 million, $1.2 million, $2.6 million, and $2.8 million at December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016 respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for loan losses (Unaudited)

(Dollars in thousands)



Quarter ended


December 31,
 2017


September 30,
 2017


June 30,
 2017


March 31,
 2017


December 31,
 2016

Beginning balance

$

56,927



62,885



61,104



60,939



63,246


Provision

6,525



3,027



5,562



4,637



2,145


Charge-offs residential mortgage

(162)



(215)



(372)



(290)



(710)


Charge-offs home equity

(393)



(528)



(689)



(649)



(321)


Charge-offs consumer finance

(2,900)



(3,891)



(782)



(796)



(1,003)


Charge-offs consumer

(3,322)



(3,002)



(2,735)



(2,864)



(2,466)


Charge-offs commercial real estate

(1,470)



(1,901)



(329)



(474)



(323)


Charge-offs commercial

(785)



(509)



(929)



(1,267)



(2,489)


Recoveries

2,375



1,061



2,055



1,868



2,860


Ending balance

$

56,795



56,927



62,885



61,104



60,939












Net charge-offs to average loans, annualized

0.34

%


0.47

%


0.20

%


0.23

%


0.23

%

 


Year ended December 31,


2017


2016

Beginning balance

$

60,939



62,672


Provision

19,751



13,542


Charge-offs residential mortgage

(1,039)



(3,480)


Charge-offs home equity

(2,259)



(2,539)


Charge-offs consumer finance

(8,369)



(3,323)


Charge-offs consumer

(11,923)



(7,582)


Charge-offs commercial real estate

(4,174)



(3,740)


Charge-offs commercial

(3,490)



(4,217)


Recoveries

7,359



9,606


Ending balance

$

56,795



60,939






Net charge-offs to average loans, annualized

0.31

%


0.21

%

 


December 31, 2017


Originated loans


Acquired loans


Total loans


Balance


Reserve


Balance


Reserve


Balance


Reserve

Residential mortgage loans

$

2,662,380



3,824



113,823



131



2,776,203



3,955


Home equity loans

1,051,558



4,072



258,797



762



1,310,355



4,834


Consumer finance loans

18,619



3,968



—



—



18,619



3,968


Consumer loans

553,366



8,475



99,404



890



652,770



9,365


Personal Banking loans

4,285,923



20,339



472,024



1,783



4,757,947



22,122














Commercial real estate loans

2,161,212



19,911



293,514



3,549



2,454,726



23,460


Commercial loans

521,198



10,322



59,538



891



580,736



11,213


Commercial Banking loans

2,682,410



30,233



353,052



4,440



3,035,462



34,673














Total loans

$

6,968,333



50,572



825,076



6,223



7,793,409



56,795


 


 

 

 


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


December 31, 2017


September 30, 2017


June 30, 2017


March 31, 2017


December 31, 2016


Average

Balance


Interest


Avg.

Yield/

Cost (h)


Average
Balance


Interest


Avg.
Yield/
Cost (h)


Average
Balance


Interest


Avg.
Yield/
Cost (h)


Average
Balance


Interest


Avg.
Yield/
Cost (h)


Average
Balance


Interest


Avg.
Yield/
Cost (h)

Assets:






























Interest-earning assets:






























Residential mortgage loans

$

2,746,992



28,373



4.13

%


$

2,732,546



28,279



4.14

%


$

2,721,445



28,245



4.15

%


$

2,718,904



27,309



4.02

%


$

2,766,693



28,165



4.07

%

Home equity loans

1,312,146



15,187



4.59

%


1,299,473



14,694



4.49

%


1,311,274



14,344



4.39

%


1,332,647



14,201



4.32

%


1,346,856



14,442



4.27

%

Consumer loans

633,023



8,004



5.02

%


617,754



7,627



4.90

%


595,170



7,405



4.99

%


580,836



7,219



5.04

%


571,108



7,580



5.28

%

Consumer finance loans

22,469



1,151



20.32

%


33,469



1,433



17.13

%


40,945



2,110



20.61

%


46,452



2,482



21.37

%


49,186



2,503



20.36

%

Commercial real estate loans

2,442,528



28,251



4.53

%


2,389,969



27,234



4.46

%


2,430,594



27,071



4.41

%


2,456,070



26,562



4.33

%


2,467,569



27,863



4.42

%

Commercial loans

588,420



6,739



4.48

%


593,143



6,659



4.39

%


554,506



6,087



4.34

%


522,847



5,515



4.22

%


527,330



5,682



4.27

%

Total loans receivable (a) (b) (d)

7,745,578



87,705



4.49

%


7,666,354



85,926



4.45

%


7,653,934



85,262



4.47

%


7,657,756



83,288



4.41

%


7,728,742



86,235



4.44

%

Mortgage-backed securities (c)

581,055



3,016



2.08

%


607,454



3,118



2.05

%


592,917



2,987



2.02

%


471,674



2,222



1.88

%


482,707



2,166



1.79

%

Investment securities (c) (d)

301,268



1,495



1.98

%


352,813



1,690



1.92

%


372,398



1,796



1.93

%


377,819



1,881



1.99

%


401,602



1,950



1.94

%

FHLB stock

10,066



78



3.07

%


7,748



63



3.23

%


7,602



50



2.64

%


7,305



59



3.28

%


7,575



285



4.54

%

Other interest-earning deposits

13,515



59



1.71

%


71,482



243



1.33

%


208,141



536



1.02

%


294,391



660



0.90

%


325,889



300



0.36

%

Total interest-earning assets

8,651,482



92,353



4.24

%


8,705,851



91,040



4.15

%


8,834,992



90,631



4.11

%


8,808,945



88,110



4.06

%


8,946,515



90,936



4.04

%

Noninterest earning assets (e)

709,753







755,026







716,913







799,569







677,888






Total assets

$

9,361,235







$

9,460,877







$

9,551,905







$

9,608,514







$

9,624,403




































Liabilities and shareholders' equity:






























Interest-bearing liabilities:






























Savings deposits

$

1,655,798



763



0.18

%


$

1,681,777



776



0.18

%


$

1,714,290



768



0.18

%


$

1,702,528



755



0.18

%


$

1,668,492



771



0.18

%

Interest-bearing demand deposits

1,419,352



331



0.09

%


1,435,143



297



0.08

%


1,451,787



283



0.08

%


1,422,284



116



0.03

%


1,431,671



85



0.02

%

Money market deposit accounts

1,734,444



1,017



0.23

%


1,789,082



1,048



0.23

%


1,839,693



1,064



0.23

%


1,879,292



1,074



0.23

%


1,890,220



1,101



0.23

%

Time deposits

1,421,569



3,860



1.08

%


1,449,830



3,674



1.01

%


1,518,650



3,711



0.98

%


1,573,574



3,520



0.91

%


1,643,785



3,902



0.94

%

Borrowed funds (f)

159,599



187



0.46

%


106,282



49



0.18

%


126,685



55



0.17

%


136,872



58



0.17

%


143,540



61



0.17

%

Junior subordinated debentures

111,213



1,163



4.09

%


111,213



1,150



4.05

%


111,213



1,185



4.22

%


111,213



1,167



4.20

%


111,213



1,171



4.12

%

Total interest-bearing liabilities

6,501,975



7,321



0.45

%


6,573,327



6,994



0.42

%


6,762,318



7,066



0.42

%


6,825,763



6,690



0.40

%


6,888,921



7,091



0.41

%

Noninterest-bearing demand deposits (g)

1,599,834







1,573,112







1,544,953







1,506,268







1,493,528






Noninterest bearing liabilities

57,956







116,021







59,277







106,578







77,827






Total liabilities

8,159,765







8,262,460







8,366,548







8,438,609







8,460,276






Shareholders' equity

1,201,470







1,198,417







1,185,357







1,169,905







1,164,127






Total liabilities and shareholders' equity

$

9,361,235







$

9,460,877







$

9,551,905







$

9,608,514







$

9,624,403






Net interest income/ Interest rate spread



85,032



3.79

%




84,046



3.73

%




83,565



3.69

%




81,420



3.66

%




83,845



3.63

%

Net interest-earning assets/ Net interest margin

$

2,149,507





3.93

%


$

2,132,524





3.86

%


$

2,072,674





3.78

%


$

1,983,182





3.75

%


$

2,057,594





3.75

%

Ratio of interest-earning assets to interest-bearing liabilities

1.33X






1.32X






1.31X






1.29X






1.30X






(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.

(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.

(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.

(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.

(f) Average balances include FHLB borrowings and collateralized borrowings.

(g) Average cost of deposits were 0.30%, 0.29%, 0.29%, 0.27% and 0.29%, respectively.

(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.46%, 4.42%, 4.44%, 4.38%, and 4.41%, respectively, Investment securities - 1.66%, 1.62%, 1.62%, 1.67% and 1.61%, respectively, Interest-earning assets - 4.20%,
4.11%, 4.08%, 4.02% and 4.00%, respectively. GAAP basis net interest rate spreads were 3.75%, 3.69%, 3.66%, 3.62% and 3.59%, respectively, and GAAP basis net interest margins were 3.89%, 3.82%, 3.75%, 3.71% and 3.71%, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Average balance sheet (Unaudited)

(Dollars in thousands)


The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages.



Year ended December 31,


2017


2016


Average

Balance


Interest


Avg.

Yield/

Cost (h)


Average

Balance


Interest


Avg.

Yield/

Cost (h)

Assets:












Interest-earning assets:












Residential mortgage loans

$

2,730,055



112,206



4.11

%


$

2,749,314



114,991



4.18

%

Home equity loans

1,313,789



58,426



4.45

%


1,220,220



52,671



4.32

%

Consumer loans

590,439



30,253



5.12

%


501,587



25,348



5.05

%

Consumer finance loans

35,761



7,177



20.07

%


50,950



10,582



20.77

%

Commercial real estate loans

2,429,644



109,118



4.43

%


2,392,290



107,231



4.41

%

Commercial loans

564,600



25,000



4.37

%


477,095



20,499



4.23

%

Loans receivable (a) (b) (d)

7,664,288



342,180



4.46

%


7,391,456



331,322



4.48

%

Mortgage-backed securities (c)

563,696



11,343



2.01

%


467,560



8,540



1.83

%

Investment securities (c) (d)

350,870



6,862



1.96

%


344,575



7,612



2.21

%

FHLB stock

8,186



250



3.05

%


26,386



1,371



5.20

%

Other interest-earning deposits

158,229



1,499



0.93

%


100,336



543



0.53

%

Total interest-earning assets

8,745,269



362,134



4.14

%


8,330,313



349,388



4.19

%

Noninterest earning assets (e)

757,249







781,274






Total assets

$

9,502,518







$

9,111,587


















Liabilities and shareholders' equity:












Interest-bearing liabilities:












Savings deposits

$

1,688,451



3,062



0.18

%


$

1,500,655



3,218



0.21

%

Interest-bearing demand deposits

1,432,134



1,027



0.07

%


1,209,325



462



0.04

%

Money market deposit accounts

1,810,083



4,203



0.23

%


1,473,897



3,621



0.25

%

Time deposits

1,490,378



14,765



0.99

%


1,630,424



16,164



0.99

%

Borrowed funds (f)

132,350



348



0.26

%


592,581



10,274



1.73

%

Junior subordinated debentures

111,213



4,666



4.14

%


111,213



4,560



4.03

%

Total interest-bearing liabilities

6,664,609



28,071



0.42

%


6,518,095



38,299



0.59

%

Noninterest-bearing demand deposits (g)

1,556,511







1,245,320






Noninterest bearing liabilities

92,611







188,381






Total liabilities

8,313,731







7,951,796






Shareholders' equity

1,188,787







1,159,791






Total liabilities and shareholders' equity

$

9,502,518







$

9,111,587






Net interest income/ Interest rate spread



334,063



3.72

%




311,089



3.60

%

Net interest-earning assets/ Net interest margin

$

2,080,660





3.82

%


$

1,812,218





3.73

%

Ratio of interest-earning assets to interest-bearing liabilities

1.31X






1.28X






(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.

(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.

(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.

(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.

(f) Average balances include FHLB borrowings and collateralized borrowings.

(g) Average cost of deposits were 0.29%, and 0.33%, respectively.

(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.44% and 4.45%, respectively, Investment securities - 1.65%
and 1.78%, respectively, Interest-earning assets - 4.10% and 4.15%, respectively. GAAP basis net interest rate spreads were 3.68% and 3.56%,
respectively, and GAAP basis net interest margins were 3.78% and 3.69%, respectively.

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-fourth-quarter-2017-earnings-and-quarterly-dividend-increase-300585903.html

SOURCE Northwest Bancshares, Inc.

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