In This Article:
Net interest margin expands 45 basis points to 3.87% our 4th consecutive quarter of improved margin
All regulatory and shareholder approvals received for Penns Woods merger
Total revenue grew 19% from first quarter 2024
3rd consecutive quarter of reduced costs of funds
Credit quality remains stable with nonperforming assets at 0.52% of total assets
COLUMBUS, Ohio, April 28, 2025 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (Nasdaq: NWBI) announced net income for the quarter ended March 31, 2025 of $43 million, or $0.34 per diluted share. This represents an increase of $14 million compared to the same quarter last year, when net income was $29 million, or $0.23 per diluted share, and an increase of $11 million compared to the prior quarter, when net income was $33 million, or $0.26 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended March 31, 2025 were 10.90% and 1.22% compared to 7.57% and 0.81% for the same quarter last year and 8.20% and 0.91% from the prior quarter.
Compared to adjusted net income (non-GAAP) of $35 million, or $0.27, per diluted share in the prior quarter, adjusted net income (non-GAAP) increased by $9 million to $44 million, or $0.35, per diluted share for the quarter ended March 31, 2025. This increase was driven by a $14 million increase in net interest income impacted by a large non-accrual interest income recovery. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended March 31, 2025 were 11.11% and 1.25% compared to 8.71% and 0.97% for the prior quarter.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on May 20, 2025 to shareholders of record as of May 8, 2025. This is the 122th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of March 31, 2025, this represents an annualized dividend yield of approximately 6.7%.
Louis J. Torchio, President and CEO, Northwest Bancshares commented, "Our strong performance, with record earnings for a first quarter and one of the best quarters in Northwest's history, is a result of the Northwest team's continued rigorous focus on execution, and cost control and risk management discipline. We continue to enhance our capabilities, expand our footprint, and provide personalized services and expertise to our consumers, companies, and the communities we serve."
"Despite the unpredictable operating environment, I remain confident and excited about Northwest's prospects for the year ahead. We continue to focus on managing the factors within our control, such as serving our core customers and communities, building on our strong and stable financial foundations, maintaining prudent cost control and risk management discipline, and executing to plan on our financial close and systems conversion for the Penns Woods acquisition by late July 2025. We are well prepared to capitalize on opportunities aligned with our strategy for sustainable, responsible, and profitable growth, when and where they arise in the coming months."
Balance Sheet Highlights
| Dollars in thousands | | | | | | | Change 1Q25 vs. | ||
| | 1Q25 | | 4Q24 | | 1Q24 | | 4Q24 | | 1Q24 |
| Average loans receivable | $ 11,176,516 | | 11,204,781 | | 11,345,308 | | (0.3) % | | (1.5) % |
| Average investments | 2,037,227 | | 2,033,991 | | 2,051,058 | | 0.2 % | | (0.7) % |
| Average deposits | 12,088,371 | | 12,028,417 | | 11,887,954 | | 0.5 % | | 1.7 % |
| Average borrowed funds | 224,122 | | 222,506 | | 469,697 | | 0.7 % | | (52.3) % |
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Average loans receivable decreased $169 million from the quarter ended March 31, 2024 driven by our personal banking portfolio, which decreased by $388 million as cash flows from this portfolio were reinvested in our commercial portfolios. This was partially offset by growth in our commercial banking portfolio, which grew by $219 million in total, including a $339 million increase in our commercial and industrial portfolio as we have continued to build-out our commercial lending verticals. Compared to the fourth quarter of 2024, average loans receivable decreased by $28 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.
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Average investments declined $14 million from the quarter ended March 31, 2024 and increased $3 million from the quarter ended December 31, 2024. The decline from the prior year was driven by the investment portfolio restructure which occurred in the second quarter of 2024 as a portion of the proceeds from the investment sale were used to reduce outstanding borrowings. The growth in average investments from the prior quarter was due to an increase in net portfolio purchases during the quarter to reach a normalized percentage of total assets for liquidity purposes.
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Average deposits grew $200 million from the quarter ended March 31, 2024 and $60 million from the quarter ended December 31, 2024. The growth in both periods was driven by an increase in both money market and saving account balances partly due to customers shifting funds to these competitively priced products as their time deposits matured. These increases were partially offset by a decrease in brokered time deposit balances as growth in core deposits provided sufficient funding.
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Average borrowings decreased $246 million compared to the quarter end March 31, 2024 and increased $2 million compared to the quarter ended December 31, 2024. The decrease in average borrowings from the prior year is primarily attributable to the strategic pay-down of wholesale borrowings with the proceeds from our investment portfolio restructuring in the second quarter of 2024.
Income Statement Highlights
| Dollars in thousands | | | | | | Change 1Q25 vs. | |||
| | 1Q25 | | 4Q24 | | 1Q24 | | 4Q24 | | 1Q24 |
| Interest income | $ 180,595 | | 170,722 | | 160,239 | | 5.8 % | | 12.7 % |
| Interest expense | 52,777 | | 56,525 | | 57,001 | | (6.6) % | | (7.4) % |
| Net interest income | $ 127,818 | | 114,197 | | 103,238 | | 11.9 % | | 23.8 % |
| | | | | | | | | | |
| Net interest margin | 3.87 % | | 3.42 % | | 3.10 % | | | | |
Compared to the quarter ended March 31, 2024, net interest income increased $25 million and net interest margin increased to 3.87% from 3.10% for the quarter ended March 31, 2024. This increase in net interest income resulted primarily from:
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A $20 million increase in interest income that was the result of higher average yields, partly offset by lower average earning assets. The average yield on loans improved to 6.00% for the quarter ended March 31, 2025 from 5.33% for the quarter ended March 31, 2024. This increase was driven by a loan mix shift towards higher yielding commercial loans and also includes an interest recovery of $13.1 million on a non-accrual commercial loan payoff during the quarter ended March 31, 2025. Excluding this interest recovery, the yield on loans for the quarter ended March 31, 2025 was 5.52% and the net interest margin was 3.48%. The average yields on investments increased due to a portfolio restructuring completed in the second quarter of 2024.
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A $4 million decrease in interest expense as the result of a decline in the average balance of borrowings and higher cost brokered CDs that was accomplished by growth in core deposits. The cost of interest-bearing liabilities decreased to 2.15% for the quarter ended March 31, 2025 from 2.28% for the quarter ended March 31, 2024.
Compared to the quarter ended December 31, 2024, net interest income increased $14 million and net interest margin increased to 3.87% for the quarter ended March 31, 2025 from 3.42% for the quarter ended December 31, 2024. This increase in net interest income resulted from the following:
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A $10 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 6.00% from 5.56% and average investment yields increased to 2.62% from 2.57% for the quarter ended December 31, 2024. The increase in loan yields was impacted by non-accrual interest recoveries in both the current and prior quarter, partially offset by the full impact of fourth quarter 2024 rate cuts.
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A $4 million decrease in interest expense driven by lower interest expense on deposits as average cost declined compared to the prior quarter to 2.02% from 2.14% for the quarter ended December 31, 2024.
| Dollars in thousands | | | | | | | Change 1Q25 vs. | ||
| | 1Q25 | | 4Q24 | | 1Q24 | | 4Q24 | | 1Q24 |
| Provision for credit losses - loans | $ 8,256 | | 15,549 | | 4,234 | | (46.9) % | | 95.0 % |
| Provision for credit losses - unfunded commitments | (345) | | 1,016 | | (799) | | (134.0) % | | (56.8) % |
| Total provision for credit losses expense | $ 7,911 | | 16,565 | | 3,435 | | (52.2) % | | 130.3 % |
The total provision for credit losses for the quarter ended March 31, 2025 was $8 million primarily driven by growth within our commercial lending portfolio and changes in the economic forecasts. Total provision for credit losses for the quarter ended December 31, 2024 was $17 million as the result of steps taken to de-risk our loan portfolio and reduce our levels of nonperforming, criticized and classified loans by completing two loan pool sales and transferring certain loans within our Long Term Healthcare portfolio into held for sale. As a result we saw an elevated level of charge-offs during the fourth quarter as the loans noted above were written-down to fair market value prior to sale. Total charge-offs related to the loan sales and transfer to loans held-for-sale was a combined $15 million.
The Company saw an increase in classified loans to $279 million, or 2.49% of total loans, at March 31, 2025 from $229 million, or 1.99% of total loans, at March 31, 2024 and $272 million, or 2.44% of total loans, at December 31, 2024.
| Dollars in thousands | | | | | | Change 1Q25 vs. | |||
| | 1Q25 | | 4Q24 | | 1Q24 | | 4Q24 | | 1Q24 |
| Noninterest income: | | | | | | | | | |
| Gain on sale of SBA loans | $ 1,238 | | 822 | | 873 | | 50.6 % | | 41.8 % |
| Service charges and fees | 14,987 | | 15,975 | | 15,523 | | (6.2) % | | (3.5) % |
| Trust and other financial services income | 7,910 | | 7,485 | | 7,127 | | 5.7 % | | 11.0 % |
| Gain on real estate owned, net | 84 | | 238 | | 57 | | (64.7) % | | 47.4 % |
| Income from bank-owned life insurance | 1,331 | | 2,020 | | 1,502 | | (34.1) % | | (11.4) % |
| Mortgage banking income | 696 | | 224 | | 452 | | 210.7 % | | 54.0 % |
| Other operating income | 2,109 | | 13,299 | | 2,429 | | (84.1) % | | (13.2) % |
| Total noninterest income | $ 28,355 | | 40,063 | | 27,963 | | (29.2) % | | 1.4 % |
Noninterest income remained flat from the quarter ended March 31, 2024 and decreased by $12 million from the quarter ended December 31, 2024, due primarily to a decrease in other operating income driven by a gain on sale of Visa B shares and a gain on a low income housing tax credit investment that occurred in the quarter ended December 31, 2024.
| Dollars in thousands | | | | | | Change 1Q25 vs. | |||
| | 1Q25 | | 4Q24 | | 1Q24 | | 4Q24 | | 1Q24 |
| Noninterest expense: | | | | | | | | | |
| Personnel expense | $ 54,540 | | 53,198 | | 51,540 | | 2.5 % | | 5.8 % |
| Non-personnel expense | 37,197 | | 42,128 | | 38,484 | | (11.7) % | | (3.3) % |
| Total noninterest expense | $ 91,737 | | 95,326 | | 90,024 | | (3.8) % | | 1.9 % |
Noninterest expense increased from the quarter ended March 31, 2024 due to a $3 million increase in personnel expenses driven by an increase in incentive compensation and an increase in medical expenses, which was partially offset by a decrease in non-personnel expense of $1 million due to the decline in professional services fees.
Compared to the quarter ended December 31, 2024, noninterest expense decreased due to a decrease in non-personnel expense of $5 million due to restructuring expenses in the prior quarter and a decrease in processing expense due to technology investments in the prior period.
| Dollars in thousands | | | | | | Change 1Q25 vs. | |||
| | 1Q25 | | 4Q24 | | 1Q24 | | 4Q24 | | 1Q24 |
| Income before income taxes | $ 56,525 | | 42,369 | | 37,742 | | 33.4 % | | 49.8 % |
| Income tax expense | 13,067 | | 9,619 | | 8,579 | | 35.8 % | | 52.3 % |
| Net income | $ 43,458 | | 32,750 | | 29,163 | | 32.7 % | | 49.0 % |
The provision for income taxes increased by $4 million from the quarter ended March 31, 2024 and increased $3 million from the quarter ended December 31, 2024 primarily due to the quarterly change in income before income taxes.
Net income increased from the quarter ended March 31, 2024 and December 31, 2024 due to the 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 March 31, 2025, 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 limitation, 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. This release also contains forward-looking statements with respect to the proposed merger between the Company and Penns Woods Bancorp, Inc. ("Penns Woods") including, without limitation, statements with respect to the expected timing of the proposed merger. Such statements are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors including, without limitation: the proposed merger may not be consummated within the anticipated time period or at all. 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.
Investor Contact: Michael Perry, Corporate Development & Strategy (814) 726-2140
Media Contact: Ian Bailey, External Communications (380) 400-2423
| Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) (dollars in thousands, except per share amounts) | |||||
| | |||||
| | March 31, | | December 31, | | March 31, |
| Assets | | | | | |
| Cash and cash equivalents | $ 353,203 | | 288,378 | | 119,319 |
| Marketable securities available-for-sale (amortized cost of $1,304,760, $1,278,665 and $1,298,108, | 1,153,385 | | 1,108,944 | | 1,094,009 |
| Marketable securities held-to-maturity (fair value of $637,803, $637,948 and $680,353, respectively) | 735,909 | | 750,586 | | 801,107 |
| Total cash and cash equivalents and marketable securities | 2,242,497 | | 2,147,908 | | 2,014,435 |
| | | | | | |
| Loans held-for-sale | 71,206 | | 76,331 | | 8,082 |
| Residential mortgage loans | 3,121,647 | | 3,178,269 | | 3,374,980 |
| Home equity loans | 1,141,577 | | 1,149,396 | | 1,196,607 |
| Consumer loans | 2,081,469 | | 1,995,085 | | 2,118,367 |
| Commercial real estate loans | 2,792,734 | | 2,849,862 | | 3,028,314 |
| Commercial loans | 2,079,018 | | 2,007,402 | | 1,774,896 |
| Total loans receivable | 11,216,445 | | 11,180,014 | | 11,493,164 |
| Allowance for credit losses | (122,809) | | (116,819) | | (124,897) |
| Loans receivable, net | 11,093,636 | | 11,063,195 | | 11,368,267 |
| | | | | | |
| FHLB stock, at cost | 17,941 | | 21,006 | | 30,811 |
| Accrued interest receivable | 45,949 | | 46,356 | | 50,680 |
| Real estate owned, net | 80 | | 35 | | 50 |
| Premises and equipment, net | 123,138 | | 124,246 | | 130,565 |
| Bank-owned life insurance | 254,444 | | 253,137 | | 252,842 |
| Goodwill | 380,997 | | 380,997 | | 380,997 |
| Other intangible assets, net | 2,334 | | 2,837 | | 4,589 |
| Other assets | 221,505 | | 292,176 | | 268,945 |
| Total assets | $ 14,453,727 | | 14,408,224 | | 14,510,263 |
| Liabilities and shareholders' equity | | | | | |
| Liabilities | | | | | |
| Noninterest-bearing demand deposits | $ 2,640,943 | | 2,621,415 | | 2,618,379 |
| Interest-bearing demand deposits | 2,590,568 | | 2,666,504 | | 2,557,866 |
| Money market deposit accounts | 2,124,293 | | 2,007,739 | | 1,952,537 |
| Savings deposits | 2,221,901 | | 2,171,251 | | 2,156,048 |
| Time deposits | 2,596,451 | | 2,677,645 | | 2,786,814 |
| Total deposits | 12,174,156 | | 12,144,554 | | 12,071,644 |
| | | | | | |
| Borrowed funds | 197,270 | | 200,331 | | 400,783 |
| Subordinated debt | 114,625 | | 114,538 | | 114,276 |
| Junior subordinated debentures | 129,899 | | 129,834 | | 129,639 |
| Advances by borrowers for taxes and insurance | 44,121 | | 42,042 | | 46,970 |
| Accrued interest payable | 6,843 | | 6,935 | | 17,395 |
| Other liabilities | 157,858 | | 173,134 | | 177,107 |
| Total liabilities | 12,824,772 | | 12,811,368 | | 12,957,814 |
| 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, 127,736,303, 127,508,003 and | 1,277 | | 1,275 | | 1,273 |
| Additional paid-in capital | 1,035,093 | | 1,033,385 | | 1,026,173 |
| Retained earnings | 691,066 | | 673,110 | | 678,427 |
| Accumulated other comprehensive loss | (98,481) | | (110,914) | | (153,424) |
| Total shareholders' equity | 1,628,955 | | 1,596,856 | | 1,552,449 |
| Total liabilities and shareholders' equity | $ 14,453,727 | | 14,408,224 | | 14,510,263 |
| | | | | | |
| Equity to assets | 11.27 % | | 11.08 % | | 10.70 % |
| Tangible common equity to tangible assets* | 8.85 % | | 8.65 % | | 8.26 % |
| Book value per share | $ 12.75 | | 12.52 | | 12.20 |
| Tangible book value per share* | $ 9.75 | | 9.51 | | 9.17 |
| Closing market price per share | $ 12.02 | | 13.19 | | 11.65 |
| Full time equivalent employees | 1,996 | | 1,956 | | 2,060 |
| Number of banking offices | 141 | | 141 | | 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 | ||||||||
| | March 31, | | December 31, | | September 30, | | June 30, 2024 | | March 31, 2024 |
| | | | | | |||||
| Interest income: | | | | | | | | | |
| Loans receivable | $ 164,638 | | 155,838 | | 156,413 | | 153,954 | | 149,571 |
| Mortgage-backed securities | 11,730 | | 11,515 | | 10,908 | | 9,426 | | 7,944 |
| Taxable investment securities | 933 | | 910 | | 842 | | 728 | | 794 |
| Tax-free investment securities | 512 | | 515 | | 512 | | 457 | | 491 |
| FHLB stock dividends | 366 | | 392 | | 394 | | 498 | | 607 |
| Interest-earning deposits | 2,416 | | 1,552 | | 2,312 | | 1,791 | | 832 |
| Total interest income | 180,595 | | 170,722 | | 171,381 | | 166,854 | | 160,239 |
| Interest expense: | | | | | | | | | |
| Deposits | 47,325 | | 50,854 | | 54,198 | | 52,754 | | 47,686 |
| Borrowed funds | 5,452 | | 5,671 | | 5,881 | | 7,259 | | 9,315 |
| Total interest expense | 52,777 | | 56,525 | | 60,079 | | 60,013 | | 57,001 |
| Net interest income | 127,818 | | 114,197 | | 111,302 | | 106,841 | | 103,238 |
| Provision for credit losses - loans | 8,256 | | 15,549 | | 5,727 | | 2,169 | | 4,234 |
| Provision for credit losses - unfunded commitments | (345) | | 1,016 | | (852) | | (2,539) | | (799) |
| Net interest income after provision for credit losses | 119,907 | | 97,632 | | 106,427 | | 107,211 | | 99,803 |
| Noninterest income: | | | | | | | | | |
| Loss on sale of investments | — | | — | | — | | (39,413) | | — |
| Gain on sale of SBA loans | 1,238 | | 822 | | 667 | | 1,457 | | 873 |
| Service charges and fees | 14,987 | | 15,975 | | 15,932 | | 15,527 | | 15,523 |
| Trust and other financial services income | 7,910 | | 7,485 | | 7,924 | | 7,566 | | 7,127 |
| Gain on real estate owned, net | 84 | | 238 | | 105 | | 487 | | 57 |
| Income from bank-owned life insurance | 1,331 | | 2,020 | | 1,434 | | 1,371 | | 1,502 |
| Mortgage banking income | 696 | | 224 | | 744 | | 901 | | 452 |
| Other operating income | 2,109 | | 13,299 | | 1,027 | | 3,255 | | 2,429 |
| Total noninterest income/(loss) | 28,355 | | 40,063 | | 27,833 | | (8,849) | | 27,963 |
| Noninterest expense: | | | | | | | | | |
| Compensation and employee benefits | 54,540 | | 53,198 | | 56,186 | | 53,531 | | 51,540 |
| Premises and occupancy costs | 8,400 | | 7,263 | | 7,115 | | 7,464 | | 7,627 |
| Office operations | 2,977 | | 3,036 | | 2,811 | | 3,819 | | 2,767 |
| Collections expense | 328 | | 905 | | 474 | | 406 | | 336 |
| Processing expenses | 13,990 | | 15,361 | | 14,570 | | 14,695 | | 14,725 |
| Marketing expenses | 1,880 | | 2,327 | | 2,004 | | 2,410 | | 2,149 |
| Federal deposit insurance premiums | 2,328 | | 2,949 | | 2,763 | | 2,865 | | 3,023 |
| Professional services | 2,756 | | 3,788 | | 3,302 | | 3,728 | | 4,065 |
| Amortization of intangible assets | 504 | | 526 | | 590 | | 635 | | 701 |
| Merger, asset disposition and restructuring expense | 1,123 | | 2,850 | | 43 | | 1,915 | | 955 |
| Other expenses | 2,911 | | 3,123 | | 909 | | 952 | | 2,136 |
| Total noninterest expense | 91,737 | | 95,326 | | ...90,767 | | 92,420 | | 90,024 |
| Income before income taxes | 56,525 | | 42,369 | | 43,493 | | 5,942 | | 37,742 |
| Income tax expense | 13,067 | | 9,619 | | 9,875 | | 1,195 | | 8,579 |
| Net income | $ 43,458 | | 32,750 | | 33,618 | | 4,747 | | 29,163 |
| | | | | | | | | | |
| Basic earnings per share | $ 0.34 | | 0.26 | | 0.26 | | 0.04 | | 0.23 |
| Diluted earnings per share | $ 0.34 | | 0.26 | | 0.26 | | 0.04 | | 0.23 |
| | | | | | | | | | |
| Weighted average common shares outstanding - diluted | 128,299,013 | | 127,968,910 | | 127,714,511 | | 127,199,039 | | 127,598,971 |
| | | | | | | | | | |
| Annualized return on average equity | 10.90 % | | 8.20 % | | 8.50 % | | 1.24 % | | 7.57 % |
| Annualized return on average assets | 1.22 % | | 0.91 % | | 0.93 % | | 0.13 % | | 0.81 % |
| Annualized return on average tangible common equity * | 14.29 % | | 10.81 % | | 11.26 % | | 1.65 % | | 10.08 % |
| Efficiency ratio | 58.74 % | | 61.80 % | | 65.24 % | | 94.31 % | | 68.62 % |
| Efficiency ratio, excluding certain items ** | 57.70 % | | 59.61 % | | 64.78 % | | 65.41 % | | 67.35 % |
| * 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 Reconciliation of Non-GAAP Financial Measures (Unaudited) * (dollars in thousands, except per share amounts) | |||||
| | |||||
| | Quarter ended | ||||
| | March 31, | | December 31, | | March 31, 2024 |
| Reconciliation of net income to adjusted net income: | | | | | |
| Net income (GAAP) | $ 43,458 | | 32,750 | | 29,163 |
| Non-GAAP adjustments | | | | | |
| Add: merger, asset disposition and restructuring expense | 1,123 | | 2,850 | | 955 |
| Less: tax benefit of non-GAAP adjustments | (314) | | (798) | | (267) |
| Adjusted net income (non-GAAP) | $ 44,267 | | 34,802 | | 29,851 |
| Diluted earnings per share (GAAP) | $ 0.34 | | 0.26 | | 0.23 |
| Diluted adjusted earnings per share (non-GAAP) | $ 0.35 | | 0.27 | | 0.23 |
| | | | | | |
| Average equity | $ 1,616,611 | | 1,589,228 | | 1,549,870 |
| Average assets | 14,402,483 | | 14,322,864 | | 14,408,612 |
| Annualized return on average equity (GAAP) | 10.90 % | | 8.20 % | | 7.57 % |
| Annualized return on average assets (GAAP) | 1.22 % | | 0.91 % | | 0.81 % |
| Annualized return on average equity, excluding merger, asset disposition and restructuring expense and | 11.11 % | | 8.71 % | | 7.75 % |
| Annualized return on average assets, excluding merger, asset disposition and restructuring expense and | 1.25 % | | 0.97 % | | 0.83 % |
| 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. |
| | March 31, | | December 31, | | March 31, |
| Tangible common equity to assets | | | | | |
| Total shareholders' equity | $ 1,628,955 | | 1,596,856 | | 1,552,449 |
| Less: goodwill and intangible assets | (383,331) | | (383,834) | | (385,586) |
| Tangible common equity | $ 1,245,624 | | 1,213,022 | | 1,166,863 |
| | | | | | |
| Total assets | $ 14,453,727 | | 14,408,224 | | 14,510,263 |
| Less: goodwill and intangible assets | (383,331) | | (383,834) | | (385,586) |
| Tangible assets | $ 14,070,396 | | 14,024,390 | | 14,124,677 |
| | | | | | |
| Tangible common equity to tangible assets | 8.85 % | | 8.65 % | | 8.26 % |
| | | | | | |
| Tangible book value per share | | | | | |
| Tangible common equity | $ 1,245,624 | | 1,213,022 | | 1,166,863 |
| Common shares outstanding | 127,736,303 | | 127,508,003 | | 127,253,189 |
| Tangible book value per share | 9.75 | | 9.51 | | 9.17 |
| 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 | ||||||||
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| | | | | | |||||
| Annualized return on average tangible common equity | | | | | | | | | |
| Net income | $ 43,458 | | 32,750 | | 33,618 | | 4,747 | | 29,163 |
| | | | | | | | | | |
| Average shareholders' equity | 1,616,611 | | 1,589,228 | | 1,572,897 | | 1,541,434 | | 1,549,870 |
| Less: average goodwill and intangible assets | (383,649) | | (384,178) | | (384,730) | | (385,364) | | (386,038) |
| Average tangible common equity | $ 1,232,962 | | 1,205,050 | | 1,188,167 | | 1,156,070 | | 1,163,832 |
| | | | | | | | | | |
| Annualized return on average tangible common equity | 14.29 % | | 10.81 % | | 11.26 % | | 1.65 % | | 10.08 % |
| | | | | | | | | | |
| Efficiency ratio, excluding loss on the sale of investments, gain on the sale of mortgage servicing rights, amortization and | | | | | | | | | |
| Non-interest expense | $ 91,737 | | 95,326 | | 90,767 | | 92,420 | | 90,024 |
| Less: amortization expense | (504) | | (526) | | (590) | | (635) | | (701) |
| Less: merger, asset disposition and restructuring expenses | (1,123) | | (2,850) | | (43) | | (1,915) | | (955) |
| Non-interest expense, excluding amortization and merger, assets disposition and restructuring expenses | $ 90,110 | | 91,950 | | 90,134 | | 89,870 | | 88,368 |
| | | | | | | | | | |
| Net interest income | $ 127,818 | | 114,197 | | 111,302 | | 106,841 | | 103,238 |
| Non-interest income | 28,355 | | 40,063 | | 27,833 | | (8,849) | | 27,963 |
| Add: loss on the sale of investments | — | | — | | — | | 39,413 | | — |
| Net interest income plus non-interest income, excluding loss on sale of investments | $ 156,173 | | 154,260 | | 139,135 | | 137,405 | | 131,201 |
| | | | | | | | | | |
| Efficiency ratio, excluding loss on sale of investments, amortization and merger, asset disposition and restructuring expenses | 57.70 % | | 59.61 % | | 64.78 % | | 65.41 % | | 67.35 % |
| * 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, amortization expense and loss on sale of investments. 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 March 31, 2025 | ||||
| | Balance | | Percent of | | Number of |
| Uninsured deposits per the Call Report (1) | $ 3,222,098 | | 26.5 % | | 5,345 |
| Less intercompany deposit accounts | 1,282,989 | | 10.5 % | | 12 |
| Less collateralized deposit accounts | 395,737 | | 3.3 % | | 237 |
| Uninsured deposits excluding intercompany and collateralized accounts | $ 1,543,372 | | 12.7 % | | 5,096 |
| (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 $29.2 million, or 0.24% of total deposits, as of March 31, 2025. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $186.0 million, or 1.53% of total deposits, as of March 31, 2025. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $303,000 as of March 31, 2025. |
| |
| The following table provides additional details for the Company's deposit portfolio: |
| | As of March 31, 2025 | ||||
| | Balance | | Percent of | | Number of |
| Personal noninterest bearing demand deposits | $ 1,404,770 | | 11.5 % | | 284,530 |
| Business noninterest bearing demand deposits | 1,236,173 | | 10.2 % | | 42,964 |
| Personal interest-bearing demand deposits | 1,374,998 | | 11.3 % | | 55,371 |
| Business interest-bearing demand deposits | 1,215,570 | | 10.0 % | | 7,486 |
| Personal money market deposits | 1,512,596 | | 12.4 % | | 24,817 |
| Business money market deposits | 611,697 | | 5.0 % | | 2,675 |
| Savings deposits | 2,221,901 | | 18.3 % | | 178,473 |
| Time deposits | 2,596,451 | | 21.3 % | | 78,677 |
| Total deposits | $ 12,174,156 | | 100.0 % | | 674,993 |
| Our average deposit account balance as of March 31, 2025 was $18,036. The Company's insured cash sweep deposit balance was $501 million as of March 31, 2025. |
| Northwest Bancshares, Inc. and Subsidiaries Regulatory Capital Requirements (Unaudited) (dollars in thousands) | |||||||||||
| | |||||||||||
| | At March 31, 2025 | ||||||||||
| | Actual (1) | | Minimum capital requirements (2) | | Well capitalized requirements | ||||||
| | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio |
| Total capital (to risk weighted assets) | | | | | | | | | | | |
| Northwest Bancshares, Inc. | $ 1,743,262 | | 16.468 % | | $ 1,111,489 | | 10.500 % | | $ 1,058,561 | | 10.000 % |
| Northwest Bank | 1,504,956 | | 14.231 % | | 1,110,402 | | 10.500 % | | 1,057,526 | | 10.000 % |
| | | | | | | | | | | | |
| Tier 1 capital (to risk weighted assets) | | | | | | | | | | | |
| Northwest Bancshares, Inc. | 1,496,161 | | 14.134 % | | 899,777 | | 8.500 % | | 635,136 | | 6.000 % |
| Northwest Bank | 1,372,608 | | 12.979 % | | 898,897 | | 8.500 % | | 846,021 | | 8.000 % |
| | | | | | | | | | | | |
| Common equity tier 1 capital (to risk weighted assets) | | | | | | | | | | | |
| Northwest Bancshares, Inc. | 1,370,251 | | 12.944 % | | 740,992 | | 7.000 % | | N/A | | N/A |
| Northwest Bank | 1,372,608 | | 12.979 % | | 740,268 | | 7.000 % | | 687,392 | | 6.500 % |
| | | | | | | | | | | | |
| Tier 1 capital (leverage) (to average assets) | | | | | | | | | | | |
| Northwest Bancshares, Inc. | 1,496,161 | | 10.512 % | | 569,332 | | 4.000 % | | N/A | | N/A |
| Northwest Bank | 1,372,608 | | 9.650 % | | 568,942 | | 4.000 % | | 711,177 | | 5.000 % |
| (1) | March 31, 2025 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 2024 Annual Report on Form 10-K. |
| Northwest Bancshares, Inc. and Subsidiaries Marketable Securities (Unaudited) (dollars in thousands) | ||||||||||
| | ||||||||||
| | | March 31, 2025 | ||||||||
| Marketable securities available-for-sale | | Amortized cost | | Gross unrealized holding gains | | Gross unrealized holding losses | | Fair value | | Weighted average |
| Debt issued by the U.S. government and agencies: | | | | | | | | | | |
| Due after ten years | | $ 44,404 | | — | | (8,913) | | 35,491 | | 5.96 |
| | | | | | | | | | | |
| Debt issued by government sponsored enterprises: | | | | | | | | | | |
| Due after one year through five years | | 106 | | — | | (4) | | 102 | | 1.73 |
| | | | | | | | | | | |
| Municipal securities: | | | | | | | | | | |
| Due after one year through five years | | 848 | | 11 | | — | | 859 | | 1.45 |
| Due after five years through ten years | | 17,783 | | 120 | | (1,947) | | 15,956 | | 7.34 |
| Due after ten years | | 50,075 | | 82 | | (8,823) | | 41,334 | | 9.97 |
| | | | | | | | | | | |
| Corporate debt issues: | | | | | | | | | | |
| Due after one year through five years | | 5,486 | | 1 | | (58) | | 5,429 | | 2.59 |
| Due after five years through ten years | | 19,968 | | 773 | | (57) | | 20,684 | | 3.74 |
| Due after ten years | | 3,000 | | 5 | | — | | 3,005 | | 4.28 |
| | | | | | | | | | | |
| Mortgage-backed agency securities: | | | | | | | | | | |
| Fixed rate pass-through | | 240,994 | | 1,176 | | (13,799) | | 228,371 | | 6.55 |
| Variable rate pass-through | | 3,521 | | 57 | | (3) | | 3,575 | | 3.42 |
| Fixed rate agency CMOs | | 874,552 | | 1,613 | | (121,492) | | 754,673 | | 4.64 |
| Variable rate agency CMOs | | 44,023 | | 28 | | (145) | | 43,906 | | 6.34 |
| Total mortgage-backed agency securities | | 1,163,090 | | 2,874 | | (135,439) | | 1,030,525 | | 5.13 |
| Total marketable securities available-for-sale | | $ 1,304,760 | | 3,866 | | (155,241) | | 1,153,385 | | 5.32 |
| | | | | | | | | | | |
| Marketable securities held-to-maturity | | | | | | | | | | |
| Government sponsored | | | | | | | | | | |
| Due in one year or less | | $ 16,478 | | — | | (497) | | 15,981 | | 0.98 |
| Due after one year through five years | | 107,985 | | — | | (11,667) | | 96,318 | | 3.70 |
| | | | | | | | | | | |
| Mortgage-backed agency securities: | | | | | | | | | | |
| Fixed rate pass-through | | 129,505 | | — | | (17,095) | | 112,410 | | 4.70 |
| Variable rate pass-through | | 356 | | 2 | | — | | 358 | | 5.41 |
| Fixed rate agency CMOs | | 481,057 | | — | | (68,846) | | 412,211 | | 5.99 |
| Variable rate agency CMOs | | 528 | | — | | (3) | | 525 | | 4.51 |
| Total mortgage-backed agency securities | | 611,446 | | 2 | | (85,944) | | 525,504 | | 5.71 |
| Total marketable securities held-to-maturity | | $ 735,909 | | 2 | | (98,108) | | 637,803 | | 5.31 |
| Northwest Bancshares, Inc. and Subsidiaries Asset Quality (Unaudited) (dollars in thousands) | |||||||||
| | |||||||||
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| Nonaccrual loans: | | | | | | | | | |
| Residential mortgage loans | $ 7,025 | | 6,951 | | 7,541 | | 6,403 | | 7,109 |
| Home equity loans | 3,004 | | 3,332 | | 4,041 | | 4,055 | | 4,409 |
| Consumer loans | 5,201 | | 5,028 | | 5,205 | | 4,609 | | 4,629 |
| Commercial real estate loans | 31,763 | | 36,967 | | 43,471 | | 74,972 | | 74,452 |
| Commercial loans | 11,757 | | 9,123 | | 16,570 | | 12,120 | | 4,461 |
| Total nonaccrual loans | 58,750 | | 61,401 | | 76,828 | | 102,159 | | 95,060 |
| Loans 90 days past due and still accruing | 603 | | 656 | | 1,045 | | 2,511 | | 2,452 |
| Nonperforming loans | 59,353 | | 62,057 | | 77,873 | | 104,670 | | 97,512 |
| Real estate owned, net | 80 | | 35 | | 76 | | 74 | | 50 |
| Other nonperforming assets (1) | 16,102 | | 16,102 | | — | | — | | — |
| Nonperforming assets | $ 75,535 | | 78,194 | | 77,949 | | 104,744 | | 97,562 |
| | | | | | | | | | |
| Nonperforming loans to total loans | 0.53 % | | 0.56 % | | 0.69 % | | 0.92 % | | 0.85 % |
| Nonperforming assets to total assets | 0.52 % | | 0.54 % | | 0.54 % | | 0.73 % | | 0.67 % |
| Allowance for credit losses to total loans | 1.09 % | | 1.04 % | | 1.11 % | | 1.10 % | | 1.09 % |
| Allowance for credit losses to nonperforming loans | 206.91 % | | 188.24 % | | 161.56 % | | 119.49 % | | 128.08 % |
| (1) Other nonperforming assets includes nonaccrual loans held-for-sale. |
| Northwest Bancshares, Inc. and Subsidiaries Loans by Credit Quality Indicators (Unaudited) (dollars in thousands) | ||||||||||||
| | ||||||||||||
| At March 31, 2025 | | Pass | | Special mention * | | Substandard ** | | Doubtful | | Loss | | Loans receivable |
| Personal Banking: | | | | | | | | | | | | |
| Residential mortgage loans | | $ 3,110,770 | | — | | 10,877 | | — | | — | | 3,121,647 |
| Home equity loans | | 1,138,367 | | — | | 3,210 | | — | | — | | 1,141,577 |
| Consumer loans | | 2,075,719 | | — | | 5,750 | | — | | — | | 2,081,469 |
| Total Personal Banking | | 6,324,856 | | — | | 19,837 | | — | | — | | 6,344,693 |
| Commercial Banking: | | | | | | | | | | | | |
| Commercial real estate loans | | 2,497,722 | | 86,779 | | 208,233 | | — | | — | | 2,792,734 |
| Commercial loans | | 1,964,699 | | 63,249 | | 51,070 | | — | | — | | 2,079,018 |
| Total Commercial Banking | | 4,462,421 | | 150,028 | | 259,303 | | — | | — | | 4,871,752 |
| Total loans | | $ 10,787,277 | | 150,028 | | 279,140 | | — | | — | | 11,216,445 |
| At December 31, 2024 | | | | | | | | | | | | |
| Personal Banking: | | | | | | | | | | | | |
| Residential mortgage loans | | $ 3,167,447 | | — | | 10,822 | | — | | — | | 3,178,269 |
| Home equity loans | | 1,145,856 | | — | | 3,540 | | — | | — | | 1,149,396 |
| Consumer loans | | 1,989,479 | | — | | 5,606 | | — | | — | | 1,995,085 |
| Total Personal Banking | | 6,302,782 | | — | | 19,968 | | — | | — | | 6,322,750 |
| Commercial Banking: | | | | | | | | | | | | |
| Commercial real estate loans | | 2,571,915 | | 72,601 | | 205,346 | | — | | — | | 2,849,862 |
| Commercial loans | | 1,923,382 | | 37,063 | | 46,957 | | — | | — | | 2,007,402 |
| Total Commercial Banking | | 4,495,297 | | 109,664 | | 252,303 | | — | | — | | 4,857,264 |
| Total loans | | $ 10,798,079 | | 109,664 | | 272,271 | | — | | — | | 11,180,014 |
| At September 30, 2024 | | | | | | | | | | | | |
| Personal Banking: | | | | | | | | | | | | |
| Residential mortgage loans | | $ 3,237,357 | | — | | 11,431 | | — | | — | | 3,248,788 |
| Home equity loans | | 1,162,951 | | — | | 4,251 | | — | | — | | 1,167,202 |
| Consumer loans | | 1,992,110 | | — | | 5,922 | | — | | — | | 1,998,032 |
| Total Personal Banking | | 6,392,418 | | — | | 21,604 | | — | | — | | 6,414,022 |
| 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 | | $ 10,835,838 | | 139,407 | | 319,943 | | — | | — | | 11,295,188 |
| At June 30, 2024 | | | | | | | | | | | | |
| Personal Banking: | | | | | | | | | | | | |
| Residential mortgage loans | | $ 3,303,603 | | — | | 11,700 | | — | | — | | 3,315,303 |
| Home equity loans | | 1,176,187 | | — | | 4,299 | | — | | — | | 1,180,486 |
| Consumer loans | | 2,074,869 | | — | | 5,189 | | — | | — | | 2,080,058 |
| Total Personal Banking | | 6,554,659 | | — | | 21,188 | | — | | — | | 6,575,847 |
| Commercial Banking: | | | | | | | | | | | | |
| Commercial real estate loans | | 2,682,086 | | 130,879 | | 213,993 | | — | | — | | 3,026,958 |
| Commercial loans | | 1,673,052 | | 47,400 | | 21,662 | | — | | — | | 1,742,114 |
| Total Commercial Banking | | 4,355,138 | | 178,279 | | 235,655 | | — | | — | | 4,769,072 |
| Total loans | | $ 10,909,797 | | 178,279 | | 256,843 | | — | | — | | 11,344,919 |
| At March 31, 2024 | | | | | | | | | | | | |
| Personal Banking: | | | | | | | | | | | | |
| Residential mortgage loans | | $ 3,362,439 | | — | | 12,541 | | — | | — | | 3,374,980 |
| Home equity loans | | 1,191,957 | | — | | 4,650 | | — | | — | | 1,196,607 |
| Consumer loans | | 2,113,050 | | — | | 5,317 | | — | | — | | 2,118,367 |
| Total Personal Banking | | 6,667,446 | | — | | 22,508 | | — | | — | | 6,689,954 |
| Commercial Banking: | | | | | | | | | | | | |
| Commercial real estate loans | | 2,714,643 | | 131,247 | | 182,424 | | — | | — | | 3,028,314 |
| Commercial loans | | 1,698,519 | | 52,461 | | 23,916 | | — | | — | | 1,774,896 |
| Total Commercial Banking | | 4,413,162 | | 183,708 | | 206,340 | | — | | — | | 4,803,210 |
| Total loans | | $ 11,080,608 | | 183,708 | | 228,848 | | — | | — | | 11,493,164 |
| * Includes $4.7 million, $2.7 million, $2.9 million, $2.5 million, and $2.4 million of acquired loans at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. |
| ** Includes $18.0 million, $19.8 million, $26.0 million, $24.3 million, and $27.2 million of acquired loans at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. |
| Northwest Bancshares, Inc. and Subsidiaries Loan Delinquency (Unaudited) (dollars in thousands) | |||||||||||||||||||
| | |||||||||||||||||||
| | March 31, | | * | | December 31, 2024 | | * | | September 30, 2024 | | * | | June 30, 2024 | | * | | March 31, 2024 | | * |
| | | | | | | | | | | | | | | | | | | | |
| Loans delinquent 30 days to 59 days: | | | | | | | | | | | | | | | | | | | |
| Residential mortgage loans | $ 32,840 | | 1.0 % | | $ 28,690 | | 0.9 % | | $ 685 | | — % | | $ 616 | | — % | | $ 38,502 | | 1.1 % |
| Home equity loans | 3,882 | | 0.3 % | | 5,365 | | 0.5 % | | 3,907 | | 0.3 % | | 3,771 | | 0.3 % | | 4,608 | | 0.4 % |
| Consumer loans | 8,792 | | 0.4 % | | 11,102 | | 0.6 % | | 10,777 | | 0.5 % | | 10,372 | | 0.5 % | | 9,911 | | 0.5 % |
| Commercial real estate loans | 8,536 | | 0.3 % | | 5,215 | | 0.2 % | | 5,919 | | 0.2 % | | 4,310 | | 0.1 % | | 6,396 | | 0.2 % |
| Commercial loans | 6,841 | | 0.3 % | | 5,632 | | 0.3 % | | 3,260 | | 0.2 % | | 4,366 | | 0.3 % | | 3,091 | | 0.2 % |
| Total loans delinquent 30 days to 59 days | $ 60,891 | | 0.5 % | | $ 56,004 | | 0.5 % | | $ 24,548 | | 0.2 % | | $ 23,435 | | 0.2 % | | $ 62,508 | | 0.5 % |
| | | | | | | | | | | | | | | | | | | | |
| Loans delinquent 60 days to 89 days: | | | | | | | | | | | | | | | | | | | |
| Residential mortgage loans | $ 3,074 | | 0.1 % | | $ 10,112 | | 0.3 % | | $ 9,027 | | 0.3 % | | $ 8,223 | | 0.2 % | | $ 70 | | — % |
| Home equity loans | 1,290 | | 0.1 % | | 1,434 | | 0.1 % | | 882 | | 0.1 % | | 1,065 | | 0.1 % | | 761 | | 0.1 % |
| Consumer loans | 2,808 | | 0.1 % | | 3,640 | | 0.2 % | | 3,600 | | 0.2 % | | 3,198 | | 0.2 % | | 2,545 | | 0.1 % |
| Commercial real estate loans | 2,001 | | 0.1 % | | 915 | | — % | | 7,643 | | 0.3 % | | 3,155 | | 0.1 % | | 807 | | — % |
| Commercial loans | 2,676 | | 0.1 % | | 1,726 | | 0.1 % | | 753 | | — % | | 8,732 | | 0.5 % | | 1,284 | | 0.1 % |
| Total loans delinquent 60 days to 89 days | $ 11,849 | | 0.1 % | | $ 17,827 | | 0.2 % | | $ 21,905 | | 0.2 % | | $ 24,373 | | 0.2 % | | $ 5,467 | | — % |
| | | | | | | | | | | | | | | | | | | | |
| Loans delinquent 90 days or more: ** | | | | | | | | | | | | | | | | | | | |
| Residential mortgage loans | $ 4,005 | | 0.1 % | | $ 4,931 | | 0.2 % | | $ 5,370 | | 0.2 % | | $ 5,553 | | 0.2 % | | $ 5,813 | | 0.2 % |
| Home equity loans | 1,893 | | 0.2 % | | 2,250 | | 0.2 % | | 2,558 | | 0.2 % | | 2,506 | | 0.2 % | | 2,823 | | 0.2 % |
| Consumer loans | 4,026 | | 0.2 % | | 3,967 | | 0.2 % | | 3,983 | | 0.2 % | | 3,012 | | 0.1 % | | 3,345 | | 0.2 % |
| Commercial real estate loans | 23,433 | | 0.8 % | | 7,702 | | 0.3 % | | 6,167 | | 0.2 % | | 6,034 | | 0.2 % | | 6,931 | | 0.2 % |
| Commercial loans | 5,994 | | 0.3 % | | 7,335 | | 0.4 % | | 14,484 | | 0.8 % | | 3,385 | | 0.2 % | | 3,421 | | 0.2 % |
| Total loans delinquent 90 days or more | $ 39,351 | | 0.3 % | | $ 26,185 | | 0.2 % | | $ 32,562 | | 0.3 % | | $ 20,490 | | 0.2 % | | $ 22,333 | | 0.2 % |
| | | | | | | | | | | | | | | | | | | | |
| Total loans delinquent | $ 112,091 | | 1.0 % | | $ 100,016 | | 0.9 % | | $ 79,015 | | 0.7 % | | $ 68,298 | | 0.6 % | | $ 90,308 | | 0.8 % |
| * 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, $0.2 million, $0.2 million, $0.1 million, and $0.4 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. |
| Northwest Bancshares, Inc. and Subsidiaries Allowance for Credit Losses (Unaudited) (dollars in thousands) | |||||||||
| | |||||||||
| | Quarter ended | ||||||||
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| Beginning balance | $ 116,819 | | 125,813 | | 125,070 | | 124,897 | | 125,243 |
| Provision | 8,256 | | 15,549 | | 5,727 | | 2,169 | | 4,234 |
| Charge-offs residential mortgage | (588) | | (176) | | (255) | | (252) | | (162) |
| Charge-offs home equity | (273) | | (197) | | (890) | | (237) | | (412) |
| Charge-offs consumer | (3,805) | | (4,044) | | (3,560) | | (2,561) | | (4,573) |
| Charge-offs commercial real estate | (116) | | (13,997) | | (475) | | (500) | | (349) |
| Charge-offs commercial | (571) | | (10,400) | | (1,580) | | (1,319) | | (1,163) |
| Recoveries | 3,087 | | 4,271 | | 1,776 | | 2,873 | | 2,079 |
| Ending balance | $ 122,809 | | 116,819 | | 125,813 | | 125,070 | | 124,897 |
| Net charge-offs to average loans, annualized | 0.08 % | | 0.87 % | | 0.18 % | | 0.07 % | | 0.16 % |
| Northwest Bancshares, Inc. and Subsidiaries Average Balance Sheet (Unaudited) (dollars in thousands) | |||||||||||||||||||||||||||||
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| 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. | |||||||||||||||||||||||||||||
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| | Quarter ended | ||||||||||||||||||||||||||||
| | March 31, 2025 | | December 31, 2024 | | September 30, 2024 | | June 30, 2024 | | March 31, 2024 | ||||||||||||||||||||
| | Average balance | | Interest | | Avg. 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 | $ 3,155,738 | | 30,394 | | 3.85 % | | $ 3,215,596 | | 31,107 | | 3.87 % | | $ 3,286,316 | | 31,537 | | 3.84 % | | $ 3,342,749 | | 32,182 | | 3.85 % | | $ 3,392,524 | | 32,674 | | 3.85 % |
| Home equity loans | 1,139,728 | | 16,164 | | 5.75 % | | 1,154,456 | | 16,801 | | 5.79 % | | 1,166,866 | | 17,296 | | 5.90 % | | 1,183,497 | | 17,303 | | 5.88 % | | 1,205,273 | | 17,294 | | 5.77 % |
| Consumer loans | 1,948,230 | | 26,273 | | 5.47 % | | 1,918,356 | | 26,293 | | 5.45 % | | 1,955,988 | | 26,034 | | 5.29 % | | 2,048,396 | | 26,334 | | 5.17 % | | 2,033,620 | | 25,033 | | 4.95 % |
| Commercial real estate loans | 2,879,607 | | 56,508 | | 7.85 % | | 2,983,946 | | 46,933 | | 6.15 % | | 2,995,032 | | 47,473 | | 6.31 % | | 3,023,762 | | 45,658 | | 5.97 % | | 2,999,224 | | 43,425 | | 5.73 % |
| Commercial loans | 2,053,213 | | 36,012 | | 7.02 % | | 1,932,427 | | 35,404 | | 7.17 % | | 1,819,400 | | 34,837 | | 7.62 % | | 1,770,345 | | 33,229 | | 7.43 % | | 1,714,667 | | 31,857 | | 7.35 % |
| Total loans receivable (a) (b) (d) | 11,176,516 | | 165,351 | | 6.00 % | | 11,204,781 | | 156,538 | | 5.56 % | | 11,223,602 | | 157,177 | | 5.57 % | | 11,368,749 | | 154,706 | | 5.47 % | | 11,345,308 | | 150,283 | | 5.33 % |
| Mortgage-backed securities (c) | 1,773,402 | | 11,730 | | 2.65 % | | 1,769,151 | | 11,514 | | 2.60 % | | 1,735,728 | | 10,908 | | 2.51 % | | 1,734,085 | | 9,426 | | 2.17 % | | 1,717,306 | | 7,944 | | 1.85 % |
| Investment securities (c) (d) | 263,825 | | 1,599 | | 2.43 % | | 264,840 | | 1,575 | | 2.38 % | | 263,127 | | 1,504 | | 2.29 % | | 287,262 | | 1,316 | | 1.83 % | | 333,752 | | 1,430 | | 1.71 % |
| FHLB stock, at cost | 20,862 | | 366 | | 7.11 % | | 21,237 | | 392 | | 7.35 % | | 20,849 | | 394 | | 7.51 % | | 25,544 | | 498 | | 7.84 % | | 32,249 | | 607 | | 7.57 % |
| Other interest-earning deposits | 243,412 | | 2,415 | | 3.97 % | | 132,273 | | 1,554 | | 4.60 % | | 173,770 | | 2,312 | | 5.29 % | | 135,520 | | 1,791 | | 5.23 % | | 61,666 | | 832 | | 5.34 % |
| Total interest-earning assets | 13,478,017 | | 181,461 | | 5.46 % | | 13,392,282 | | 171,573 | | 5.10 % | | 13,417,076 | | 172,295 | | 5.11 % | | 13,551,160 | | 167,737 | | 4.98 % | | 13,490,281 | | 161,096 | | 4.80 % |
| Noninterest-earning assets (e) | 924,466 | | | | | | 930,582 | | | | | | 934,593 | | | | | | 907,432 | | | | | | 918,331 | | | | |
| Total assets | $ 14,402,483 | | | | | | $ 14,322,864 | | | | | | $ 14,351,669 | | | | | | $ 14,458,592 | | | | | | $ 14,408,612 | | | | |
| Liabilities and shareholders' equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Savings deposits | $ 2,194,305 | | 6,452 | | 1.19 % | | $ 2,152,955 | | 6,549 | | 1.21 % | | $ 2,151,933 | | 6,680 | | 1.23 % | | $ 2,144,278 | | 5,957 | | 1.12 % | | $ 2,122,035 | | 5,036 | | 0.95 % |
| Interest-bearing demand deposit | 2,593,228 | | 7,063 | | 1.10 % | | 2,636,279 | | 7,894 | | 1.19 % | | 2,567,682 | | 7,452 | | 1.15 % | | 2,555,863 | | 6,646 | | 1.05 % | | 2,538,823 | | 5,402 | | 0.86 % |
| Money market deposit accounts | 2,082,948 | | 9,306 | | 1.81 % | | 1,980,769 | | 8,880 | | 1.78 % | | 1,966,684 | | 9,170 | | 1.85 % | | 1,957,990 | | 8,601 | | 1.77 % | | 1,961,332 | | 7,913 | | 1.62 % |
| Time deposits | 2,629,388 | | 24,504 | | 3.78 % | | 2,671,343 | | 27,531 | | 4.10 % | | 2,830,737 | | 30,896 | | 4.34 % | | 2,832,720 | | 31,550 | | 4.48 % | | 2,697,983 | | 29,335 | | 4.37 % |
| Total interesting bearing deposits (g) | 9,499,869 | | 47,325 | | 2.02 % | | 9,441,346 | | 50,854 | | 2.14 % | | 9,517,036 | | 54,198 | | 2.27 % | | 9,490,851 | | 52,754 | | 2.24 % | | 9,320,173 | | 47,686 | | 2.07 % |
| Borrowed funds (f) | 224,122 | | 2,206 | | 3.99 % | | 222,506 | | 2,246 | | 4.02 % | | 220,677 | | 2,266 | | 4.09 % | | 323,191 | | 3,662 | | 4.56 % | | 469,697 | | 5,708 | | 4.89 % |
| Subordinated debt | 114,576 | | 1,148 | | 4.01 % | | 114,488 | | 1,148 | | 4.01 % | | 114,396 | | 1,148 | | 4.01 % | | 114,308 | | 1,148 | | 4.02 % | | 114,225 | | 1,148 | | 4.02 % |
| Junior subordinated debentures | 129,856 | | 2,098 | | 6.46 % | | 129,791 | | 2,277 | | 6.87 % | | 129,727 | | 2,467 | | 7.56 % | | 129,663 | | 2,449 | | 7.47 % | | 129,597 | | 2,459 | | 7.51 % |
| Total interest-bearing liabilities | 9,968,423 | | 52,777 | | 2.15 % | | 9,908,131 | | 56,525 | | 2.27 % | | 9,981,836 | | 60,079 | | 2.39 % | | 10,058,013 | | 60,013 | | 2.40 % | | 10,033,692 | | 57,001 | | 2.28 % |
| Noninterest-bearing demand deposits (g) | 2,588,502 | | | | | | 2,587,071 | | | | | | 2,579,775 | | | | | | 2,595,511 | | | | | | 2,567,781 | | | | |
| Noninterest-bearing liabilities | 228,947 | | | | | | 238,434 | | | | | | 217,161 | | | | | | 263,634 | | | | | | 257,269 | | | | |
| Total liabilities | 12,785,872 | | | | | | 12,733,636 | | | | | | 12,778,772 | | | | | | 12,917,158 | | | | | | 12,858,742 | | | | |
| Shareholders' equity | 1,616,611 | | | | | | 1,589,228 | | | | | | 1,572,897 | | | | | | 1,541,434 | | | | | | 1,549,870 | | | | |
| Total liabilities and shareholders' equity | $ 14,402,483 | | | | | | $ 14,322,864 | | | | | | $ 14,351,669 | | | | | | $ 14,458,592 | | | | | | $ 14,408,612 | | | | |
| Net interest income/Interest rate spread FTE | | | 128,684 | | 3.31 % | | | | 115,048 | | 2.83 % | | | | 112,216 | | 2.72 % | | | | 107,724 | | 2.58 % | | | | 104,095 | | 2.52 % |
| Net interest-earning assets/Net interest margin FTE | $ 3,509,594 | | | | 3.87 % | | $ 3,484,151 | | | | 3.42 % | | $ 3,435,240 | | | | 3.33 % | | $ 3,493,147 | | | | 3.20 % | | $ 3,456,589 | | | | 3.10 % |
| Tax equivalent adjustment (d) | | | 866 | | | | | | 851 | | | | | | 914 | | | | | | 883 | | | | | | 857 | | |
| Net interest income, GAAP basis | | | 127,818 | | | | | | 114,197 | | | | | | 111,302 | | | | | | 106,841 | | | | | | 103,238 | | |
| Ratio of interest-earning assets to interest-bearing liabilities | 1.35X | | | | | | 1.35X | | | | | | 1.34X | | | | | | 1.35X | | | | | | 1.34X | | | | |
| (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 total deposits were 1.59%, 1.68%, 1.78%, 1.76%, and 1.61%, respectively. |
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SOURCE Northwest Bancshares, Inc.