EXHIBIT 99.1
PRESS RELEASE OF NORTHWEST BANCSHARES, INC.
EARNINGS RELEASE
FOR IMMEDIATE RELEASE
|
| |
| Contact: | William J. Wagner, President and Chief Executive Officer (814) 726-2140 |
| | William W. Harvey, Jr., Senior Executive Vice President and Chief Financial Officer (814) 726-2140 |
Northwest Bancshares, Inc. Announces Second Quarter 2016 Results and Quarterly Dividend
Warren, Pennsylvania — July 25, 2016
Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced a net loss for the quarter ended June 30, 2016 of $7.0 million, or $0.07 per diluted share. This represents a decrease of $22.3 million compared to the same quarter last year when net income was $15.3 million or $0.17 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended June 30, 2016 were (2.44)% and (0.32)% compared to 5.77% and 0.78% for the same quarter last year.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.15 per share payable on August 18, 2016, to shareholders of record as of August 4, 2016. This is the 87th consecutive quarter in which the Company has paid a cash dividend. Based on the current market value of the Company's stock, this represents an annualized dividend yield of approximately 4.0%.
Earnings for the current quarter include a $37.0 million penalty for the prepayment of $715.0 million of Federal Home Loan Bank ("FHLB") term borrowings which were replaced with lower-cost short-term advances. The refinancing of FHLB advances was done in anticipation of the purchase of 18 offices from First Niagara Bank, which is expected to close during the third quarter of 2016 and contribute deposits of approximately $1.7 billion. Upon closing the First Niagara transaction, the total impact of replacing long-term borrowings with low-cost deposits will create annual interest expense savings of $24.0 million. Also negatively impacting quarterly earnings were restructuring costs of $2.9 million related to the consolidation of 24 offices, and acquisition expenses of $467,000 related to the First Niagara transaction. Excluding the after-tax impact of these expenses, non-GAAP net operating income for the quarter was $19.6 million, or $0.20 per diluted share, compared to non-GAAP net operating income of $15.6 million, or $0.17 per diluted share in the same quarter last year. The non-GAAP annualized returns on average shareholders’ equity and average assets for the quarter ended June 30, 2016 were 6.82% and 0.89% compared to 5.89% and 0.80% in the previous year.
In making this announcement, William J. Wagner, President and CEO, noted, "2016 is proving to be a transformational year for our company. We were able to drive greater efficiency by consolidating 24 of our offices which decreased our total office count by 13%. Although this consolidation required $3.5 million in restructuring charges, annual savings going forward will be approximately $5.0 million.”
“We also announced an agreement to purchase 18 First Niagara Bank offices in the greater Buffalo market with deposits of $1.7 billion and loans of $511.0 million. We anticipate closing this transaction before the end of the third quarter, and we look forward to the favorable impact it will have on our operating metrics. Given the large size of these offices, with deposits that average approximately $95.0 million, our efficiency ratio will improve and our presence in the Buffalo market will be greatly enhanced. We also anticipate that this acquisition will provide a favorable impact to our net interest margin, net income, return on assets and earnings per share. Most importantly, we are extremely excited to welcome the 70,000 new customers of these offices and the 185 employees who serve them."
Net interest income increased by $14.5 million, or 23.3%, to $76.7 million for the quarter ended June 30, 2016, from $62.2 million for the quarter ended June 30, 2015. This increase is due primarily to an $11.7 million, or 16.4%, increase in interest income on loans as a result of a $1.170 billion increase in the Company’s loan portfolio from June 30 of last year. Contributing significantly to this increase was the acquisition of Lorain National Bank ("LNB") on August 14, 2015, which added loans of $928.0 million. Also contributing to the increase in net interest income was a $4.0 million decrease in interest expense on borrowed funds due primarily to the previously mentioned FHLB advance restructuring. Partially offsetting these improvements was a $752,000 decrease in interest income on investment securities as the cash flow from these securities was used to fund loan growth. The interest paid on deposits increased by $174,000 for the quarter as deposit balances were $941.5 million, or 16.5%, higher than
they were in the previous year, primarily due to the LNB acquisition. As a result of these changes, the Company's interest rate spread increased to 3.71% for the quarter ended June 30, 2016 from 3.25% for the comparable period last year while the net interest margin increased to 3.82% for the quarter ended June 30, 2016 from 3.45% for the same quarter last year.
The provision for loan losses increased by $3.1 million, or 299.9%, to $4.2 million for the quarter ended June 30, 2016, from $1.1 million for the quarter ended June 30, 2015. This increase is due primarily to the downgrade of three commercial banking relationships requiring an additional $1.7 million of combined reserves. However, overall credit quality continued to improve as classified loans to total loans decreased to 2.73% at June 30, 2016 from 3.12% at June 30, 2015 and annualized net charge-offs to average loans decreased to 0.31% for the quarter ended June 30, 2016 from 0.61% for the quarter ended June 30, 2015.
Noninterest income increased by $3.8 million, or 22.7%, to $20.3 million for the quarter ended June 30, 2016, from $16.5 million for the quarter ended June 30, 2015. Contributing to this increase was an increase in service charges and fees of $1.4 million, or 15.2%, which is attributable to the growth in checking accounts from both the LNB acquisition and internal growth initiatives. Gain on sale of real estate owned increased by $652,000, as the Company recognized a net gain of $111,000 for the quarter ended June 30, 2016 compared to a net loss of $541,000 for the same quarter last year.
Noninterest expense increased by $48.2 million, or 87.3%, to $103.3 million for the quarter ended June 30, 2016, from $55.1 million for the quarter ended June 30, 2015. This increase resulted primarily from the FHLB prepayment penalty of $37.0 million and an increase in acquisition and restructuring charges of $2.8 million as previously discussed. The other increases for the current quarter compared to the prior year are primarily attributable to incremental expenses from the LNB acquisition.
Net income for the six month period ended June 30, 2016 was $11.0 million, or $0.11 per diluted share. This represents a decrease of $20.5 million, or 65.1%, compared to the six month period ended June 30, 2015, when net income was $31.5 million, or $0.34 per diluted share. The annualized returns on average shareholders’ equity and average assets for the six month period ended June 30, 2016 were 1.90% and 0.25% compared to 5.97% and 0.81% for the same period last year. This decrease is due primarily to the FHLB prepayment penalty of $37.0 million, acquisition and restructuring expenses of $4.0 million and the additional loan loss provision previously discussed, as well as other increases in noninterest expense related to the inclusion of the LNB franchise on August 14, 2015. Offsetting these items which negatively impacted income was an increase in interest income on loans of $21.7 million, or 15.3%, and an increase in noninterest income of $8.6 million, or 27.5%. Non-GAAP net operating income for the six month period ended June 30, 2016, which excludes the after-tax impact of the aforementioned FHLB prepayment penalty and restructuring and acquisition expenses totaling $26.6 million, was $37.9 million, or $0.38 per diluted share. This represents an increase of $5.9 million, or 18.4%, compared to the six month period ended June 30, 2015 non-GAAP net operating income of $32.0 million, or $0.35 per diluted share. The non-GAAP annualized returns on average shareholders’ equity and average assets for the six month period ended June 30, 2016 were 6.58% and 0.86% compared to 6.07% and 0.82% for the same period last year.
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 150 full-service community banking offices and seven free standing drive-through facilities in Pennsylvania, New York, Ohio and Maryland and 51 consumer finance offices in Pennsylvania through its subsidiary, Northwest Consumer Discount Company. 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; 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)
|
| | | | | | | | | |
| | June 30,
2016 | | December 31,
2015 | | June 30,
2015 |
| Assets | |
| | |
| | |
| Cash and cash equivalents | $ | 87,711 |
| | 92,263 |
| | 84,000 |
|
| Interest-earning deposits in other financial institutions | 223,084 |
| | 74,510 |
| | 208,311 |
|
| Federal funds sold and other short-term investments | 636 |
| | 635 |
| | 637 |
|
| Marketable securities available-for-sale (amortized cost of $772,768, $868,956 and $906,028, respectively) | 705,297 |
| | 874,405 |
| | 861,157 |
|
| Marketable securities held-to-maturity (fair value of $28,611, $32,552 and $92,989, respectively) | 25,144 |
| | 31,689 |
| | 61,464 |
|
| Total cash, interest-earning deposits and marketable securities | 1,041,872 |
| | 1,073,502 |
| | 1,215,569 |
|
| | | | | | |
| Residential mortgage loans held for sale | 39,942 |
| | — |
| | — |
|
| Residential mortgage loans | 2,717,656 |
| | 2,750,564 |
| | 2,597,170 |
|
| Home equity loans | 1,162,174 |
| | 1,187,106 |
| | 1,055,829 |
|
| Consumer loans | 546,550 |
| | 510,617 |
| | 252,391 |
|
| Commercial real estate loans | 2,363,376 |
| | 2,351,434 |
| | 1,859,743 |
|
| Commercial loans | 465,223 |
| | 422,400 |
| | 359,524 |
|
| Total loans receivable | 7,294,921 |
| | 7,222,121 |
| | 6,124,657 |
|
| Allowance for loan losses | (60,781 | ) | | (62,672 | ) | | (59,057 | ) |
| Loans receivable, net | 7,234,140 |
| | 7,159,449 |
| | 6,065,600 |
|
| | | | | | |
| Federal Home Loan Bank stock, at cost | 40,321 |
| | 40,903 |
| | 38,066 |
|
| Accrued interest receivable | 20,713 |
| | 21,072 |
| | 18,682 |
|
| Real estate owned, net | 4,950 |
| | 8,725 |
| | 13,864 |
|
| Premises and Equipment, net | 151,643 |
| | 154,351 |
| | 142,302 |
|
| Bank owned life insurance | 169,616 |
| | 168,509 |
| | 146,283 |
|
| Goodwill | 262,140 |
| | 261,736 |
| | 175,498 |
|
| Other intangible assets | 8,095 |
| | 8,982 |
| | 2,759 |
|
| Other assets | 30,485 |
| | 54,670 |
| | 45,887 |
|
| Total assets | $ | 8,963,975 |
| | 8,951,899 |
| | 7,864,510 |
|
| | | | | | |
| Liabilities and Shareholders’ equity | |
| | |
| | |
| Liabilities | |
| | |
| | |
| Noninterest-bearing demand deposits | $ | 1,189,032 |
| | 1,177,256 |
| | 962,347 |
|
| Interest-bearing demand deposits | 1,110,607 |
| | 1,080,086 |
| | 928,417 |
|
| Money market deposit accounts | 1,295,127 |
| | 1,274,504 |
| | 1,143,199 |
|
| Savings deposits | 1,444,947 |
| | 1,386,017 |
| | 1,262,991 |
|
| Time deposits | 1,596,288 |
| | 1,694,718 |
| | 1,397,528 |
|
| Total deposits | 6,636,001 |
| | 6,612,581 |
| | 5,694,482 |
|
| | | | | | |
| Borrowed funds | 959,969 |
| | 975,007 |
| | 899,056 |
|
| Advances by borrowers for taxes and insurance | 45,288 |
| | 33,735 |
| | 41,763 |
|
| Accrued interest payable | 737 |
| | 1,993 |
| | 1,302 |
|
| Other liabilities | 55,312 |
| | 54,207 |
| | 56,463 |
|
| Junior subordinated debentures | 111,213 |
| | 111,213 |
| | 103,094 |
|
| Total liabilities | 7,808,520 |
| | 7,788,736 |
| | 6,796,160 |
|
| | | | | | |
| 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, 101,848,509 shares, 101,871,737 shares and 94,553,350 issued and outstanding, respectively | 1,025 |
| | 1,019 |
| | 947 |
|
| Paid-in-capital | 722,980 |
| | 717,603 |
| | 624,321 |
|
| Retained earnings | 470,337 |
| | 489,292 |
| | 487,150 |
|
| Unallocated common stock of Employee Stock Ownership Plan | (19,370 | ) | | (20,216 | ) | | (21,485 | ) |
| Accumulated other comprehensive loss | (19,517 | ) | | (24,535 | ) | | (22,583 | ) |
| Total shareholders’ equity | 1,155,455 |
| | 1,163,163 |
| | 1,068,350 |
|
| Total liabilities and shareholders’ equity | $ | 8,963,975 |
| | 8,951,899 |
| | 7,864,510 |
|
| | | | | | |
| Equity to assets | 12.89 | % | | 12.99 | % | | 13.58 | % |
| Tangible common equity to assets | 10.18 | % | | 10.28 | % | | 11.58 | % |
| Book value per share | $ | 11.28 |
| | 11.42 |
| | 11.28 |
|
| Tangible book value per share | $ | 8.64 |
| | 8.76 |
| | 9.40 |
|
| Closing market price per share | $ | 14.83 |
| | 13.39 |
| | 12.82 |
|
| Full time equivalent employees | 2,091 |
| | 2,186 |
| | 2,036 |
|
| Number of banking offices | 157 |
| | 181 |
| | 161 |
|
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share amounts)
|
| | | | | | | | | | | | | | | |
| | Quarter ended |
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, |
| | 2016 | | 2016 | | 2015 | | 2015 | | 2015 |
| Interest income: | |
| | |
| | |
| | | | |
| Loans receivable | $ | 82,645 |
| | 80,781 |
| | 80,882 |
| | 76,087 |
| | 70,985 |
|
| Mortgage-backed securities | 2,115 |
| | 2,229 |
| | 2,301 |
| | 2,230 |
| | 2,058 |
|
| Taxable investment securities | 756 |
| | 1,038 |
| | 1,108 |
| | 1,689 |
| | 1,129 |
|
| Tax-free investment securities | 707 |
| | 724 |
| | 836 |
| | 986 |
| | 1,143 |
|
| FHLB dividends | 401 |
| | 467 |
| | 499 |
| | 451 |
| | 475 |
|
| Interest-earning deposits | 70 |
| | 59 |
| | 13 |
| | 99 |
| | 180 |
|
| Total interest income | 86,694 |
| | 85,298 |
| | 85,639 |
| | 81,542 |
| | 75,970 |
|
| | | | | | | | | | |
| Interest expense: | |
| | |
| | |
| | |
| | |
|
| Deposits | 5,865 |
| | 6,088 |
| | 6,435 |
| | 6,163 |
| | 5,691 |
|
| Borrowed funds | 4,143 |
| | 7,658 |
| | 8,051 |
| | 7,987 |
| | 8,101 |
|
| Total interest expense | 10,008 |
| | 13,746 |
| | 14,486 |
| | 14,150 |
| | 13,792 |
|
| | | | | | | | | | |
| Net interest income | 76,686 |
| | 71,552 |
| | 71,153 |
| | 67,392 |
| | 62,178 |
|
| Provision for loan losses | 4,199 |
| | 1,660 |
| | 4,595 |
| | 3,167 |
| | 1,050 |
|
| Net interest income after provision for loan losses | 72,487 |
| | 69,892 |
| | 66,558 |
| | 64,225 |
| | 61,128 |
|
| | | | | | | | | | |
| Noninterest income: | |
| | |
| | |
| | |
| | |
|
| Gain on sale of investments | 227 |
| | 127 |
| | 116 |
| | 260 |
| | 566 |
|
| Service charges and fees | 10,630 |
| | 10,065 |
| | 10,530 |
| | 9,945 |
| | 9,228 |
|
| Trust and other financial services income | 3,277 |
| | 3,261 |
| | 3,410 |
| | 3,062 |
| | 3,094 |
|
| Insurance commission income | 2,768 |
| | 2,714 |
| | 2,490 |
| | 2,398 |
| | 2,210 |
|
| Gain/ (loss) on real estate owned, net | 111 |
| | 249 |
| | (156 | ) | | (246 | ) | | (541 | ) |
| Income from bank owned life insurance | 1,105 |
| | 1,595 |
| | 1,251 |
| | 1,166 |
| | 1,008 |
|
| Mortgage banking income | 446 |
| | 218 |
| | 208 |
| | 267 |
| | 218 |
|
| Other operating income | 1,711 |
| | 1,219 |
| | 1,697 |
| | 837 |
| | 742 |
|
| Total noninterest income | 20,275 |
| | 19,448 |
| | 19,546 |
| | 17,689 |
| | 16,525 |
|
| | | | | | | | | | |
| Noninterest expense: | |
| | |
| | |
| | |
| | |
|
| Compensation and employee benefits | 34,349 |
| | 33,033 |
| | 32,003 |
| | 31,000 |
| | 28,920 |
|
| Premises and occupancy costs | 6,275 |
| | 6,537 |
| | 6,403 |
| | 6,072 |
| | 5,899 |
|
| Office operations | 3,343 |
| | 3,460 |
| | 3,252 |
| | 3,268 |
| | 2,905 |
|
| Collections expense | 729 |
| | 676 |
| | 1,252 |
| | 624 |
| | 603 |
|
| Processing expenses | 8,172 |
| | 8,414 |
| | 8,057 |
| | 8,126 |
| | 7,392 |
|
| Marketing expenses | 2,541 |
| | 1,891 |
| | 1,642 |
| | 1,691 |
| | 3,190 |
|
| Federal deposit insurance premiums | 1,442 |
| | 1,503 |
| | 1,299 |
| | 1,177 |
| | 1,286 |
|
| Professional services | 2,129 |
| | 1,833 |
| | 1,933 |
| | 1,529 |
| | 1,652 |
|
| Amortization of intangible assets | 710 |
| | 675 |
| | 729 |
| | 422 |
| | 269 |
|
| Real estate owned expense | 295 |
| | 311 |
| | 393 |
| | 471 |
| | 514 |
|
| Restructuring/ acquisition expense | 3,386 |
| | 635 |
| | 1,347 |
| | 7,590 |
| | 467 |
|
| FHLB prepayment penalty | 36,978 |
| | — |
| | — |
| | — |
| | — |
|
| Other expense | 2,912 |
| | 4,307 |
| | 2,917 |
| | 1,834 |
| | 2,038 |
|
| Total noninterest expense | 103,261 |
| | 63,275 |
| | 61,227 |
| | 63,804 |
| | 55,135 |
|
| Income/(loss) before income taxes | (10,499 | ) | | 26,065 |
| | 24,877 |
| | 18,110 |
| | 22,518 |
|
| | | | | | | | | | |
| Income tax expense/ (benefit) | (3,491 | ) | | 8,081 |
| | 8,684 |
| | 5,238 |
| | 7,213 |
|
| Net income/ (loss) | $ | (7,008 | ) | | 17,984 |
| | 16,193 |
| | 12,872 |
| | 15,305 |
|
| | | | | | | | | | |
| Basic earnings/ (loss) per share | $ | (0.07 | ) | | 0.18 |
| | 0.16 |
| | 0.14 |
| | 0.17 |
|
| Diluted earnings/ (loss) per share | $ | (0.07 | ) | | 0.18 |
| | 0.16 |
| | 0.13 |
| | 0.17 |
|
| | | | | | | | | | |
| Weighted average common shares outstanding - basic | 99,177,609 |
| | 98,889,744 |
| | 98,741,393 |
| | 95,256,807 |
| | 91,538,172 |
|
| Weighted average common shares outstanding - diluted | 100,243,442 |
| | 99,380,009 |
| | 99,500,056 |
| | 95,825,798 |
| | 91,998,005 |
|
| | | | | | | | | | |
| Annualized return on average equity | (2.44 | )% | | 6.21 | % | | 5.55 | % | | 4.54 | % | | 5.77 | % |
| Annualized return on average assets | (0.32 | )% | | 0.81 | % | | 0.73 | % | | 0.59 | % | | 0.78 | % |
| Annualized return on tangible common equity | (3.18 | )% | | 8.03 | % | | 7.20 | % | | 5.72 | % | | 6.90 | % |
| | | | | | | | | | |
| Efficiency ratio * | 64.14 | % | | 68.09 | % | | 65.22 | % | | 65.58 | % | | 69.12 | % |
| Annualized noninterest expense to average assets * | 2.82 | % | | 2.80 | % | | 2.63 | % | | 2.57 | % | | 2.77 | % |
* - Excludes restructuring/acquisition expenses, FHLB prepayment penalty, and amortization of intangible assets.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share amounts)
|
| | | | | | |
| | Six months ended June 30, |
| | 2016 | | 2015 |
| Interest income: | |
| | |
|
| Loans receivable | $ | 163,426 |
| | 141,696 |
|
| Mortgage-backed securities | 4,344 |
| | 4,292 |
|
| Taxable investment securities | 1,794 |
| | 2,174 |
|
| Tax-free investment securities | 1,431 |
| | 2,491 |
|
| FHLB dividends | 868 |
| | 1,878 |
|
| Interest-earning deposits | 129 |
| | 319 |
|
| Total interest income | 171,992 |
| | 152,850 |
|
| | | | |
| Interest expense: | |
| | |
|
| Deposits | 11,953 |
| | 11,457 |
|
| Borrowed funds | 11,801 |
| | 16,234 |
|
| Total interest expense | 23,754 |
| | 27,691 |
|
| | | | |
| Net interest income | 148,238 |
| | 125,159 |
|
| Provision for loan losses | 5,859 |
| | 1,950 |
|
| Net interest income after provision for loan losses | 142,379 |
| | 123,209 |
|
| | | | |
| Noninterest income: | |
| | |
|
| Gain on sale of investments | 354 |
| | 661 |
|
| Service charges and fees | 20,695 |
| | 17,887 |
|
| Trust and other financial services income | 6,538 |
| | 5,870 |
|
| Insurance commission income | 5,482 |
| | 4,638 |
|
| Gain/ (loss) on real estate owned, net | 360 |
| | (1,587 | ) |
| Income from bank owned life insurance | 2,700 |
| | 1,921 |
|
| Mortgage banking income | 664 |
| | 458 |
|
| Other operating income | 2,930 |
| | 1,302 |
|
| Total noninterest income | 39,723 |
| | 31,150 |
|
| | | | |
| Noninterest expense: | |
| | |
|
| Compensation and employee benefits | 67,382 |
| | 56,815 |
|
| Premises and occupancy costs | 12,812 |
| | 12,166 |
|
| Office operations | 6,803 |
| | 5,817 |
|
| Collections expense | 1,405 |
| | 1,371 |
|
| Processing expenses | 16,586 |
| | 14,597 |
|
| Marketing expenses | 4,432 |
| | 5,166 |
|
| Federal deposit insurance premiums | 2,945 |
| | 2,633 |
|
| Professional services | 3,962 |
| | 3,444 |
|
| Amortization of intangible assets | 1,385 |
| | 537 |
|
| Real estate owned expense | 606 |
| | 1,206 |
|
| Restructuring/ acquisition expense | 4,021 |
| | 814 |
|
| FHLB prepayment penalty | 36,978 |
| | — |
|
| Other expense | 7,219 |
| | 4,280 |
|
| Total noninterest expense | 166,536 |
| | 108,846 |
|
| Income before income taxes | 15,566 |
| | 45,513 |
|
| | | | |
| Income tax expense | 4,590 |
| | 14,038 |
|
| Net income | $ | 10,976 |
| | 31,475 |
|
| | | | |
| Basic earnings per share | $ | 0.11 |
| | 0.34 |
|
| Diluted earnings per share | $ | 0.11 |
| | 0.34 |
|
| | | | |
| Weighted average common shares outstanding - basic | 99,033,676 |
| | 91,585,766 |
|
| Weighted average common shares outstanding - diluted | 99,811,725 |
| | 91,950,216 |
|
| | | | |
| Annualized return on average equity | 1.90 | % | | 5.97 | % |
| Annualized return on average assets | 0.25 | % | | 0.81 | % |
| Annualized return on tangible common equity | 2.49 | % | | 7.11 | % |
| | | | |
| Efficiency ratio * | 66.05 | % | | 68.77 | % |
| Annualized noninterest expense to average assets * | 2.81 | % | | 2.75 | % |
* - Excludes restructuring/acquisition expenses, FHLB prepayment penalty, and amortization of intangible assets.
Northwest Bancshares, Inc. and Subsidiaries
Reconciliation of Non-GAAP to GAAP Net Income (Unaudited) *
(Dollars in thousands, except per share amounts)
|
| | | | | | | | | | | | |
| | Quarter ended June 30, | | Six months ended June 30, |
| | 2016 | | 2015 | | 2016 | | 2015 |
| Operating results (non-GAAP): | |
| | |
| | |
| | |
|
| Net interest income | $ | 76,686 |
| | 62,178 |
| | 148,238 |
| | 125,159 |
|
| Provision for loan losses | 4,199 |
| | 1,050 |
| | 5,859 |
| | 1,950 |
|
| Noninterest income | 20,275 |
| | 16,525 |
| | 39,723 |
| | 31,150 |
|
| Noninterest expense | 62,897 |
| | 54,668 |
| | 125,537 |
| | 108,032 |
|
| Income taxes | 10,268 |
| | 7,364 |
| | 18,655 |
| | 14,300 |
|
| Net operating income (non-GAAP) | $ | 19,597 |
| | 15,621 |
| | 37,910 |
| | 32,027 |
|
| Diluted earnings per share (non-GAAP) | $ | 0.20 |
| | 0.17 |
| | 0.38 |
| | 0.35 |
|
| Average equity | $ | 1,154,885 |
| | 1,063,770 |
| | 1,159,450 |
| | 1,063,537 |
|
| Average assets | 8,882,058 |
| | 7,872,208 |
| | 8,896,530 |
| | 7,881,087 |
|
| Annualized ROE (non-GAAP) | 6.82 | % | | 5.89 | % | | 6.58 | % | | 6.07 | % |
| Annualized ROA (non-GAAP) | 0.89 | % | | 0.80 | % | | 0.86 | % | | 0.82 | % |
| | | | | | | | |
| Reconciliation of net operating income to net income: | |
| | |
| | |
| | |
|
| Net operating income (non-GAAP) | $ | 19,597 |
| | 15,621 |
| | 37,910 |
| | 32,027 |
|
| Nonoperating expenses, net of tax: | |
| | |
| | |
| | |
|
| Restructuring/ acquisition expenses | (2,364 | ) | | (316 | ) | | (2,693 | ) | | (552 | ) |
| FHLB prepayment penalty | (24,241 | ) | | — |
| | (24,241 | ) | | |
| Net income/ (loss) (GAAP) | $ | (7,008 | ) | | 15,305 |
| | 10,976 |
| | 31,475 |
|
| Diluted earnings per share (GAAP) | $ | (0.07 | ) | | 0.17 |
| | 0.11 |
| | 0.34 |
|
| Annualized ROE (GAAP) | (2.44 | )% | | 5.77 | % | | 1.90 | % | | 5.97 | % |
| Annualized ROA (GAAP) | (0.32 | )% | | 0.80 | % | | 0.25 | % | | 0.81 | % |
* - 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 acquisition expenses net of tax benefit. 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)
|
| | | | | | | | | | | | | | | |
| | June 30,
2016 | | March 31,
2016 | | December 31,
2015 | | September 30,
2015 | | June 30,
2015 |
| Nonaccrual loans current: | |
| | |
| | |
| | |
| | |
|
| Residential mortgage loans | $ | 2,017 |
| | 1,678 |
| | 1,393 |
| | 1,900 |
| | 1,655 |
|
| Home equity loans | 1,092 |
| | 1,118 |
| | 1,108 |
| | 1,471 |
| | 1,345 |
|
| Consumer loans | 277 |
| | 190 |
| | 140 |
| | 251 |
| | 171 |
|
| Commercial real estate loans | 17,456 |
| | 19,350 |
| | 14,018 |
| | 19,602 |
| | 8,596 |
|
| Commercial loans | 4,462 |
| | 5,923 |
| | 4,604 |
| | 4,877 |
| | 5,096 |
|
| Total nonaccrual loans current | $ | 25,304 |
| | 28,259 |
| | 21,263 |
| | 28,101 |
| | 16,863 |
|
| | | | | | | | | | |
| Nonaccrual loans delinquent 30 days to 59 days: | |
| | |
| | |
| | |
| | |
|
| Residential mortgage loans | $ | — |
| | 1,600 |
| | 430 |
| | — |
| | — |
|
| Home equity loans | 49 |
| | 119 |
| | 375 |
| | 392 |
| | 49 |
|
| Consumer loans | 95 |
| | 164 |
| | 97 |
| | 155 |
| | 77 |
|
| Commercial real estate loans | 151 |
| | 3,371 |
| | 2,192 |
| | 359 |
| | 867 |
|
| Commercial loans | 16 |
| | 4 |
| | 322 |
| | 131 |
| | 186 |
|
| Total nonaccrual loans delinquent 30 days to 59 days | $ | 311 |
| | 5,258 |
| | 3,416 |
| | 1,037 |
| | 1,179 |
|
| | | | | | | | | | |
| Nonaccrual loans delinquent 60 days to 89 days: | |
| | |
| | |
| | |
| | |
|
| Residential mortgage loans | $ | 1,524 |
| | 721 |
| | 2,139 |
| | 1,097 |
| | 1,197 |
|
| Home equity loans | 366 |
| | 504 |
| | 389 |
| | 260 |
| | 472 |
|
| Consumer loans | 157 |
| | 182 |
| | 315 |
| | 156 |
| | 191 |
|
| Commercial real estate loans | 6,513 |
| | 109 |
| | 762 |
| | 416 |
| | 504 |
|
| Commercial loans | 1,748 |
| | 57 |
| | 110 |
| | 11 |
| | 119 |
|
| Total nonaccrual loans delinquent 60 days to 89 days | $ | 10,308 |
| | 1,573 |
| | 3,715 |
| | 1,940 |
| | 2,483 |
|
| | | | | | | | | | |
| Nonaccrual loans delinquent 90 days or more: | |
| | |
| | |
| | |
| | |
|
| Residential mortgage loans | $ | 14,829 |
| | 14,301 |
| | 15,810 |
| | 16,510 |
| | 16,125 |
|
| Home equity loans | 5,226 |
| | 5,922 |
| | 5,650 |
| | 4,546 |
| | 4,616 |
|
| Consumer loans | 2,374 |
| | 2,360 |
| | 2,900 |
| | 3,132 |
| | 2,199 |
|
| Commercial real estate loans | 12,960 |
| | 13,165 |
| | 16,449 |
| | 10,565 |
| | 12,673 |
|
| Commercial loans | 4,566 |
| | 3,314 |
| | 2,459 |
| | 2,074 |
| | 1,858 |
|
| Total nonaccrual loans delinquent 90 days or more | $ | 39,955 |
| | 39,062 |
| | 43,268 |
| | 36,827 |
| | 37,471 |
|
| | | | | | | | | | |
| Total nonaccrual loans | $ | 75,878 |
| | 74,152 |
| | 71,662 |
| | 67,905 |
| | 57,996 |
|
| | | | | | | | | | |
| Total nonaccrual loans | $ | 75,878 |
| | 74,152 |
| | 71,662 |
| | 67,905 |
| | 57,996 |
|
| Loans 90 days past maturity and still accruing | 472 |
| | 894 |
| | 1,334 |
| | 680 |
| | 385 |
|
| Nonperforming loans | 76,350 |
| | 75,046 |
| | 72,996 |
| | 68,585 |
| | 58,381 |
|
| Real estate owned, net | 4,950 |
| | 6,834 |
| | 8,725 |
| | 10,391 |
| | 13,864 |
|
| Nonperforming assets | $ | 81,300 |
| | 81,880 |
| | 81,721 |
| | 78,976 |
| | 72,245 |
|
| | | | | | | | | | |
| Nonaccrual troubled debt restructuring * | $ | 18,098 |
| | 17,699 |
| | 21,118 |
| | 23,184 |
| | 15,443 |
|
| Accruing troubled debt restructuring | 31,015 |
| | 30,549 |
| | 29,997 |
| | 26,154 |
| | 40,741 |
|
| Total troubled debt restructuring | $ | 49,113 |
| | 48,248 |
| | 51,115 |
| | 49,338 |
| | 56,184 |
|
| | | | | | | | | | |
| Nonperforming loans to total loans | 1.05 | % | | 1.03 | % | | 1.01 | % | | 0.96 | % | | 0.95 | % |
| Nonperforming assets to total assets | 0.91 | % | | 0.92 | % | | 0.91 | % | | 0.88 | % | | 0.92 | % |
| Allowance for loan losses to total loans | 0.83 | % | | 0.85 | % | | 0.87 | % | | 0.85 | % | | 0.96 | % |
| Allowance for loan losses to nonperforming loans | 79.61 | % | | 82.99 | % | | 85.86 | % | | 94.54 | % | | 101.16 | % |
* - Amounts included in nonperforming loans above.
Northwest Bancshares, Inc. and Subsidiaries
Exposure to the oil and gas industry (Unaudited)
(Dollars in thousands)
|
| | | | | | | | | | | | | | | |
| | June 30,
2016 | | March 31,
2016 | | December 31,
2015 | | September 30,
2015 | | June 30,
2015 |
| Direct exposure to oil and gas extraction: | | | | | | | | | |
| Outstanding balance | $ | 12,844 |
| | 13,764 |
| | 16,619 |
| | 17,209 |
| | 17,990 |
|
| Commitments | 16,542 |
| | 18,450 |
| | 19,576 |
| | 20,127 |
| | 20,511 |
|
| Impaired | 561 |
| | 564 |
| | 564 |
| | 564 |
| | — |
|
| Reserve | 548 |
| | 594 |
| | 626 |
| | 749 |
| | 274 |
|
| | | | | | | | | | |
| Indirect exposure: * | | | | | | | | | |
| Outstanding balance | 58,399 |
| | 54,465 |
| | 56,659 |
| | 57,805 |
| | 72,416 |
|
| Commitments | 62,581 |
| | 58,522 |
| | 68,659 |
| | 79,226 |
| | 99,661 |
|
| Impaired | 611 |
| | — |
| | — |
| | — |
| | 217 |
|
| Reserve | 220 |
| | 195 |
| | 34 |
| | 150 |
| | 103 |
|
| | | | | | | | | | |
| Total exposure: | | | | | | | | | |
| Outstanding balance | 71,243 |
| | 68,229 |
| | 73,278 |
| | 75,014 |
| | 90,406 |
|
| Commitments | 79,123 |
| | 76,972 |
| | 88,235 |
| | 99,353 |
| | 120,172 |
|
| Impaired | 1,172 |
| | 564 |
| | 564 |
| | 564 |
| | 217 |
|
| Reserve | 768 |
| | 789 |
| | 660 |
| | 899 |
| | 377 |
|
* - Includes loans to haulers, wholesalers, and refineries.
Northwest Bancshares, Inc. and Subsidiaries
Loans by credit quality indicators (Unaudited)
(Dollars in thousands)
|
| | | | | | | | | | | | | | | | | | | |
| At June 30, 2016 | | Pass | | Special mention * | | Substandard ** | | Doubtful | | Loss | | Loans receivable |
| Personal Banking: | | |
| | |
| | |
| | |
| | |
| | |
|
| Residential mortgage loans | | $ | 2,741,101 |
| | — |
| | 16,497 |
| | — |
| | — |
| | 2,757,598 |
|
| Home equity loans | | 1,153,010 |
| | — |
| | 9,164 |
| | — |
| | — |
| | 1,162,174 |
|
| Consumer loans | | 544,174 |
| | — |
| | 2,376 |
| | — |
| | — |
| | 546,550 |
|
| Total Personal Banking | | 4,438,285 |
| | — |
| | 28,037 |
| | — |
| | — |
| | 4,466,322 |
|
| Commercial Banking: | | |
| | |
| | |
| | |
| | |
| | |
|
| Commercial real estate loans | | 2,170,583 |
| | 63,351 |
| | 129,428 |
| | 14 |
| | — |
| | 2,363,376 |
|
| Commercial loans | | 408,178 |
| | 15,435 |
| | 38,546 |
| | 3,064 |
| | — |
| | 465,223 |
|
| Total Commercial Banking | | 2,578,761 |
| | 78,786 |
| | 167,974 |
| | 3,078 |
| | — |
| | 2,828,599 |
|
| Total loans | | $ | 7,017,046 |
| | 78,786 |
| | 196,011 |
| | 3,078 |
| | — |
| | 7,294,921 |
|
| | | | | | | | | | | | | |
| At March 31, 2016 | | | | | | | | | | | | |
| Personal Banking: | | |
| | |
| | |
| | |
| | |
| | |
|
| Residential mortgage loans | | $ | 2,755,325 |
| | — |
| | 13,721 |
| | — |
| | 1,317 |
| | 2,770,363 |
|
| Home equity loans | | 1,161,382 |
| | — |
| | 8,439 |
| | — |
| | — |
| | 1,169,821 |
|
| Consumer loans | | 523,333 |
| | — |
| | 2,204 |
| | — |
| | — |
| | 525,537 |
|
| Total Personal Banking | | 4,440,040 |
| | — |
| | 24,364 |
| | — |
| | 1,317 |
| | 4,465,721 |
|
| Commercial Banking: | | |
| | |
| | |
| | |
| | |
| | |
|
| Commercial real estate loans | | 2,167,110 |
| | 63,695 |
| | 130,043 |
| | 15 |
| | — |
| | 2,360,863 |
|
| Commercial loans | | 409,994 |
| | 16,425 |
| | 39,887 |
| | 1,112 |
| | — |
| | 467,418 |
|
| Total Commercial Banking | | 2,577,104 |
| | 80,120 |
| | 169,930 |
| | 1,127 |
| | — |
| | 2,828,281 |
|
| Total loans | | $ | 7,017,144 |
| | 80,120 |
| | 194,294 |
| | 1,127 |
| | 1,317 |
| | 7,294,002 |
|
| | | | | | | | | | | | | |
| At December 31, 2015 | | | | | | | | | | | | |
| Personal Banking: | | | | | | | | | | | | |
| Residential mortgage loans | | $ | 2,725,492 |
| | — |
| | 14,060 |
| | — |
| | 1,340 |
| | 2,740,892 |
|
| Home equity loans | | 1,178,735 |
| | — |
| | 8,371 |
| | — |
| | — |
| | 1,187,106 |
|
| Consumer loans | | 517,746 |
| | — |
| | 2,543 |
| | — |
| | — |
| | 520,289 |
|
| Total Personal Banking | | 4,421,973 |
| | — |
| | 24,974 |
| | — |
| | 1,340 |
| | 4,448,287 |
|
| Commercial Banking: | | |
| | |
| | |
| | |
| | |
| | |
|
| Commercial real estate loans | | 2,170,951 |
| | 53,390 |
| | 126,978 |
| | 115 |
| | — |
| | 2,351,434 |
|
| Commercial loans | | 359,403 |
| | 23,730 |
| | 38,157 |
| | 1,110 |
| | — |
| | 422,400 |
|
| Total Commercial Banking | | 2,530,354 |
| | 77,120 |
| | 165,135 |
| | 1,225 |
| | — |
| | 2,773,834 |
|
| Total loans | | $ | 6,952,327 |
| | 77,120 |
| | 190,109 |
| | 1,225 |
| | 1,340 |
| | 7,222,121 |
|
| | | | | | | | | | | | | |
| At September 30, 2015 | | | | | | | | | | | | |
| Personal Banking: | | | | | | | | | | | | |
| Residential mortgage loans | | $ | 2,699,670 |
| | — |
| | 11,512 |
| | — |
| | 1,355 |
| | 2,712,537 |
|
| Home equity loans | | 1,198,779 |
| | — |
| | 4,411 |
| | — |
| | — |
| | 1,203,190 |
|
| Consumer loans | | 492,023 |
| | — |
| | 2,691 |
| | — |
| | — |
| | 494,714 |
|
| Total Personal Banking | | 4,390,472 |
| | — |
| | 18,614 |
| | — |
| | 1,355 |
| | 4,410,441 |
|
| Commercial Banking: | | |
| | |
| | |
| | |
| | |
| | |
|
| Commercial real estate loans | | 2,154,439 |
| | 33,339 |
| | 143,086 |
| | — |
| | — |
| | 2,330,864 |
|
| Commercial loans | | 353,366 |
| | 19,364 |
| | 37,413 |
| | 165 |
| | — |
| | 410,308 |
|
| Total Commercial Banking | | 2,507,805 |
| | 52,703 |
| | 180,499 |
| | 165 |
| | — |
| | 2,741,172 |
|
| Total loans | | $ | 6,898,277 |
| | 52,703 |
| | 199,113 |
| | 165 |
| | 1,355 |
| | 7,151,613 |
|
| | | | | | | | | | | | | |
| At June 30, 2015 | | | | | | | | | | | | |
| Personal Banking: | | | | | | | | | | | | |
| Residential mortgage loans | | $ | 2,584,438 |
| | — |
| | 11,362 |
| | — |
| | 1,370 |
| | 2,597,170 |
|
| Home equity loans | | 1,051,213 |
| | — |
| | 4,616 |
| | — |
| | — |
| | 1,055,829 |
|
| Consumer loans | | 250,648 |
| | — |
| | 1,743 |
| | — |
| | — |
| | 252,391 |
|
| Total Personal Banking | | 3,886,299 |
| | — |
| | 17,721 |
| | — |
| | 1,370 |
| | 3,905,390 |
|
| Commercial Banking: | | |
| | |
| | |
| | |
| | |
| | |
|
| Commercial real estate loans | | 1,688,449 |
| | 37,497 |
| | 133,797 |
| | — |
| | — |
| | 1,859,743 |
|
| Commercial loans | | 301,467 |
| | 19,793 |
| | 38,262 |
| | 2 |
| | — |
| | 359,524 |
|
| Total Commercial Banking | | 1,989,916 |
| | 57,290 |
| | 172,059 |
| | 2 |
| | — |
| | 2,219,267 |
|
| Total loans | | $ | 5,876,215 |
| | 57,290 |
| | 189,780 |
| | 2 |
| | 1,370 |
| | 6,124,657 |
|
* - Includes $7.6 million, $7.7 million, $7.6 million, and $533,000 of acquired loans at June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively.
** - Includes $25.5 million, $17.9 million, $18.6 million, and $18.5 million of acquired loans at June 30, 2016 March 31, 2016, December 31, 2015, and September 30, 2015, respectively.
Northwest Bancshares, Inc. and Subsidiaries
Loan delinquency (Unaudited)
(Dollars in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | June 30, 2016 | | * | | March 31,
2016 | | * | | December 31,
2015 | | * | | September 30,
2015 | | * | | June 30,
2015 | | * |
| (Number of loans and dollar amount of loans) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| �� | | | | | |
| Loans delinquent 30 days to 59 days: | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | | | | | |
| Residential mortgage loans | | 72 |
| | $ | 3,353 |
| | 0.1 | % | | 323 |
| | $ | 24,494 |
| | 0.9 | % | | 349 |
| | $ | 25,943 |
| | 0.9 | % | | 75 |
| | $ | 3,644 |
| | 0.1 | % | | 64 |
| | 3,250 |
| | 0.1 | % |
| Home equity loans | | 128 |
| | 4,988 |
| | 0.4 | % | | 132 |
| | 5,351 |
| | 0.5 | % | | 173 |
| | 5,806 |
| | 0.5 | % | | 149 |
| | 5,770 |
| | 0.5 | % | | 112 |
| | 3,768 |
| | 0.4 | % |
| Consumer loans | | 1,144 |
| | 6,725 |
| | 1.2 | % | | 895 |
| | 5,511 |
| | 1.0 | % | | 1,234 |
| | 7,101 |
| | 1.4 | % | | 1,214 |
| | 6,324 |
| | 1.3 | % | | 1,103 |
| | 5,116 |
| | 2.0 | % |
| Commercial real estate loans | | 34 |
| | 4,828 |
| | 0.2 | % | | 51 |
| | 27,474 |
| | 1.2 | % | | 48 |
| | 24,877 |
| | 1.1 | % | | 55 |
| | 7,463 |
| | 0.3 | % | | 39 |
| | 3,788 |
| | 0.2 | % |
| Commercial loans | | 15 |
| | 533 |
| | 0.1 | % | | 26 |
| | 3,133 |
| | 0.7 | % | | 31 |
| | 2,868 |
| | 0.7 | % | | 21 |
| | 1,379 |
| | 0.3 | % | | 21 |
| | 1,363 |
| | 0.4 | % |
| Total loans delinquent 30 days to 59 days | | 1,393 |
| | $ | 20,427 |
| | 0.3 | % | | 1,427 |
| | $ | 65,963 |
| | 0.9 | % | | 1,835 |
| | $ | 66,595 |
| | 0.9 | % | | 1,514 |
| | $ | 24,580 |
| | 0.3 | % | | 1,339 |
| | 17,285 |
| | 0.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans delinquent 60 days to 89 days: | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | | | | | |
| Residential mortgage loans | | 74 |
| | $ | 5,633 |
| | 0.2 | % | | 21 |
| | $ | 1,358 |
| | — | % | | 100 |
| | $ | 7,790 |
| | 0.3 | % | | 83 |
| | $ | 5,193 |
| | 0.2 | % | | 70 |
| | 5,815 |
| | 0.2 | % |
| Home equity loans | | 42 |
| | 1,435 |
| | 0.1 | % | | 36 |
| | 1,256 |
| | 0.1 | % | | 50 |
| | 2,478 |
| | 0.2 | % | | 52 |
| | 1,716 |
| | 0.1 | % | | 39 |
| | 2,090 |
| | 0.2 | % |
| Consumer loans | | 514 |
| | 2,247 |
| | 0.4 | % | | 379 |
| | 1,803 |
| | 0.3 | % | | 521 |
| | 2,521 |
| | 0.5 | % | | 512 |
| | 2,593 |
| | 0.5 | % | | 442 |
| | 1,767 |
| | 0.7 | % |
| Commercial real estate loans | | 16 |
| | 8,765 |
| | 0.4 | % | | 11 |
| | 1,081 |
| | — | % | | 21 |
| | 8,228 |
| | 0.3 | % | | 28 |
| | 8,368 |
| | 0.4 | % | | 30 |
| | 4,919 |
| | 0.3 | % |
| Commercial loans | | 23 |
| | 2,429 |
| | 0.5 | % | | 7 |
| | 375 |
| | 0.1 | % | | 7 |
| | 598 |
| | 0.1 | % | | 8 |
| | 401 |
| | 0.1 | % | | 7 |
| | 159 |
| | — | % |
| Total loans delinquent 60 days to 89 days | | 669 |
| | $ | 20,509 |
| | 0.3 | % | | 454 |
| | $ | 5,873 |
| | 0.1 | % | | 699 |
| | $ | 21,615 |
| | 0.3 | % | | 683 |
| | $ | 18,271 |
| | 0.3 | % | | 588 |
| | 14,750 |
| | 0.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans delinquent 90 days or more: ** | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | | | | | |
| Residential mortgage loans | | 176 |
| | $ | 15,046 |
| | 0.5 | % | | 183 |
| | $ | 14,673 |
| | 0.5 | % | | 215 |
| | $ | 16,350 |
| | 0.6 | % | | 204 |
| | $ | 17,209 |
| | 0.6 | % | | 203 |
| | 16,125 |
| | 0.6 | % |
| Home equity loans | | 124 |
| | 5,422 |
| | 0.5 | % | | 120 |
| | 6,200 |
| | 0.5 | % | | 143 |
| | 6,112 |
| | 0.5 | % | | 136 |
| | 5,554 |
| | 0.5 | % | | 104 |
| | 4,616 |
| | 0.4 | % |
| Consumer loans | | 440 |
| | 2,399 |
| | 0.4 | % | | 557 |
| | 2,386 |
| | 0.5 | % | | 523 |
| | 2,926 |
| | 0.6 | % | | 570 |
| | 3,156 |
| | 0.6 | % | | 440 |
| | 2,199 |
| | 0.9 | % |
| Commercial real estate loans | | 107 |
| | 15,244 |
| | 0.6 | % | | 106 |
| | 15,442 |
| | 0.7 | % | | 113 |
| | 19,031 |
| | 0.8 | % | | 95 |
| | 14,898 |
| | 0.6 | % | | 76 |
| | 12,673 |
| | 0.7 | % |
| Commercial loans | | 32 |
| | 4,709 |
| | 1.0 | % | | 34 |
| | 3,456 |
| | 0.7 | % | | 25 |
| | 2,599 |
| | 0.6 | % | | 23 |
| | 2,319 |
| | 0.6 | % | | 13 |
| | 1,858 |
| | 0.5 | % |
| Total loans delinquent 90 days or more | | 879 |
| | $ | 42,820 |
| | 0.6 | % | | 1,000 |
| | $ | 42,157 |
| | 0.6 | % | | 1,019 |
| | $ | 47,018 |
| | 0.7 | % | | 1,028 |
| | $ | 43,136 |
| | 0.6 | % | | 836 |
| | 37,471 |
| | 0.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total loans delinquent | | 2,941 |
| | $ | 83,756 |
| | 1.1 | % | | 2,881 |
| | $ | 113,993 |
| | 1.6 | % | | 3,553 |
| | $ | 135,228 |
| | 1.9 | % | | 3,225 |
| | $ | 85,987 |
| | 1.2 | % | | 2,763 |
| | 69,506 |
| | 1.1 | % |
* - Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
** - Includes purchased credit impaired loans of $2.9 million, $3.1 million, $3.7 million, and $6.3 million at June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively.
Northwest Bancshares, Inc. and Subsidiaries
Allowance for loan losses (Unaudited)
(Dollars in thousands)
|
| | | | | | | | | | | | | | | |
| | Quarter ended |
| | June 30,
2016 | | March 31,
2016 | | December 31,
2015 | | September 30,
2015 | | June 30,
2015 |
| Beginning balance | $ | 62,278 |
| | 62,672 |
| | 60,547 |
| | 59,057 |
| | 67,298 |
|
| Provision | 4,199 |
| | 1,660 |
| | 4,595 |
| | 3,167 |
| | 1,050 |
|
| Charge-offs residential mortgage | (1,852 | ) | | (564 | ) | | (171 | ) | | (342 | ) | | (278 | ) |
| Charge-offs home equity | (946 | ) | | (984 | ) | | (1,097 | ) | | (443 | ) | | (542 | ) |
| Charge-offs consumer | (2,332 | ) | | (2,403 | ) | | (2,561 | ) | | (2,014 | ) | | (1,759 | ) |
| Charge-offs commercial real estate | (1,731 | ) | | (897 | ) | | (1,216 | ) | | (558 | ) | | (3,439 | ) |
| Charge-offs commercial | (903 | ) | | (117 | ) | | (508 | ) | | (595 | ) | | (6,356 | ) |
| Recoveries | 2,068 |
| | 2,911 |
| | 3,083 |
| | 2,275 |
| | 3,083 |
|
| Ending balance | $ | 60,781 |
| | 62,278 |
| | 62,672 |
| | 60,547 |
| | 59,057 |
|
| | | | | | | | | | |
| Net charge-offs to average loans, annualized | 0.31 | % | | 0.11 | % | | 0.14 | % | | 0.10 | % | | 0.61 | % |
|
| | | | | | |
| | Six months ended June 30, |
| | 2016 | | 2015 |
| Beginning balance | $ | 62,672 |
| | 67,518 |
|
| Provision | 5,859 |
| | 1,950 |
|
| Charge-offs residential mortgage | (2,416 | ) | | (613 | ) |
| Charge-offs home equity | (1,930 | ) | | (884 | ) |
| Charge-offs consumer | (4,735 | ) | | (3,699 | ) |
| Charge-offs commercial real estate | (2,628 | ) | | (4,552 | ) |
| Charge-offs commercial | (1,020 | ) | | (7,080 | ) |
| Recoveries | 4,979 |
| | 6,417 |
|
| Ending balance | $ | 60,781 |
| | 59,057 |
|
| | | | |
| Net charge-offs to average loans, annualized | 0.21 | % | | 0.34 | % |
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 |
| | June 30, 2016 | | March 31, 2016 | | December 31, 2015 | | September 30, 2015 | | June 30, 2015 |
| | 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 | $ | 2,751,601 |
| | 30,228 |
| | 4.39 | % | | $ | 2,739,787 |
| | 29,786 |
| | 4.35 | % | | $ | 2,710,811 |
| | 29,227 |
| | 4.31 | % | | $ | 2,632,199 |
| | 29,060 |
| | 4.42 | % | | $ | 2,546,712 |
| | 28,395 |
| | 4.46 | % |
| Home equity loans | 1,163,900 |
| | 12,701 |
| | 4.39 | % | | 1,177,406 |
| | 12,642 |
| | 4.32 | % | | 1,193,433 |
| | 12,753 |
| | 4.24 | % | | 1,114,931 |
| | 12,208 |
| | 4.34 | % | | 1,054,508 |
| | 11,402 |
| | 4.34 | % |
| Consumer loans | 522,745 |
| | 8,697 |
| | 6.69 | % | | 510,091 |
| | 8,219 |
| | 6.48 | % | | 500,175 |
| | 8,805 |
| | 6.98 | % | | 364,378 |
| | 7,146 |
| | 7.78 | % | | 245,832 |
| | 6,529 |
| | 10.65 | % |
| Commercial real estate loans | 2,356,994 |
| | 26,691 |
| | 4.48 | % | | 2,349,748 |
| | 25,993 |
| | 4.38 | % | | 2,331,769 |
| | 25,972 |
| | 4.36 | % | | 2,100,463 |
| | 24,061 |
| | 4.48 | % | | 1,859,790 |
| | 21,257 |
| | 4.52 | % |
| Commercial loans | 461,808 |
| | 4,902 |
| | 4.20 | % | | 441,977 |
| �� | 4,723 |
| | 4.23 | % | | 412,415 |
| | 4,671 |
| | 4.43 | % | | 372,693 |
| | 4,108 |
| | 4.31 | % | | 367,069 |
| | 3,862 |
| | 4.16 | % |
| Total loans receivable (a) (b) (d) | 7,257,048 |
| | 83,219 |
| | 4.61 | % | | 7,219,009 |
| | 81,363 |
| | 4.53 | % | | 7,148,603 |
| | 81,428 |
| | 4.52 | % | | 6,584,664 |
| | 76,583 |
| | 4.66 | % | | 6,073,911 |
| | 71,445 |
| | 4.72 | % |
| Mortgage-backed securities (c) | 458,398 |
| | 2,115 |
| | 1.85 | % | | 488,294 |
| | 2,229 |
| | 1.83 | % | | 519,736 |
| | 2,301 |
| | 1.77 | % | | 498,757 |
| | 2,230 |
| | 1.79 | % | | 477,800 |
| | 2,058 |
| | 1.72 | % |
| Investment securities (c) (d) | 313,647 |
| | 1,844 |
| | 2.35 | % | | 387,460 |
| | 2,151 |
| | 2.22 | % | | 427,363 |
| | 2,394 |
| | 2.24 | % | | 482,666 |
| | 2,754 |
| | 2.28 | % | | 482,670 |
| | 2,887 |
| | 2.39 | % |
| FHLB stock | 33,302 |
| | 401 |
| | 4.84 | % | | 37,098 |
| | 467 |
| | 5.06 | % | | 38,651 |
| | 499 |
| | 5.12 | % | | 39,552 |
| | 451 |
| | 4.52 | % | | 35,608 |
| | 475 |
| | 5.35 | % |
| Other interest-earning deposits | 63,950 |
| | 70 |
| | 0.43 | % | | 43,578 |
| | 59 |
| | 0.54 | % | | 40,410 |
| | 13 |
| | 0.13 | % | | 162,041 |
| | 99 |
| | 0.24 | % | | 272,691 |
| | 180 |
| | 0.26 | % |
| Total interest-earning assets | 8,126,345 |
| | 87,649 |
| | 4.34 | % | | 8,175,439 |
| | 86,269 |
| | 4.24 | % | | 8,174,763 |
| | 86,635 |
| | 4.20 | % | | 7,767,680 |
| | 82,117 |
| | 4.24 | % | | 7,342,680 |
| | 77,045 |
| | 4.21 | % |
| Noninterest earning assets (e) | 755,713 |
| | |
| | |
| | 735,562 |
| | |
| | |
| | 747,317 |
| | |
| | |
| | 846,439 |
| | | | | | 529,528 |
| | |
| | |
| Total assets | $ | 8,882,058 |
| | |
| | |
| | $ | 8,911,001 |
| | |
| | |
| | $ | 8,922,080 |
| | |
| | |
| | $ | 8,614,119 |
| | |
| | |
| | $ | 7,872,208 |
| | |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities and shareholders’ equity: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | | | | | | | | | | | |
| Interest-bearing liabilities: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | | | | | | | | | | | |
| Savings deposits | $ | 1,440,886 |
| | 837 |
| | 0.23 | % | | $ | 1,405,800 |
| | 865 |
| | 0.25 | % | | $ | 1,378,377 |
| | 871 |
| | 0.25 | % | | $ | 1,324,620 |
| | 865 |
| | 0.26 | % | | $ | 1,263,785 |
| | 838 |
| | 0.27 | % |
| Interest-bearing demand deposits | 1,130,122 |
| | 144 |
| | 0.05 | % | | 1,093,839 |
| | 156 |
| | 0.06 | % | | 1,083,524 |
| | 157 |
| | 0.06 | % | | 1,022,585 |
| | 149 |
| | 0.06 | % | | 920,071 |
| | 131 |
| | 0.06 | % |
| Money market deposit accounts | 1,294,381 |
| | 829 |
| | 0.26 | % | | 1,288,535 |
| | 865 |
| | 0.27 | % | | 1,279,181 |
| | 873 |
| | 0.27 | % | | 1,217,122 |
| | 825 |
| | 0.27 | % | | 1,147,017 |
| | 759 |
| | 0.27 | % |
| Time deposits | 1,616,260 |
| | 4,055 |
| | 1.01 | % | | 1,664,322 |
| | 4,202 |
| | 1.02 | % | | 1,720,895 |
| | 4,534 |
| | 1.05 | % | | 1,577,159 |
| | 4,324 |
| | 1.09 | % | | 1,409,740 |
| | 3,963 |
| | 1.13 | % |
| Borrowed funds (f) | 772,225 |
| | 3,017 |
| | 1.57 | % | | 899,439 |
| | 6,539 |
| | 2.92 | % | | 906,574 |
| | 6,730 |
| | 2.95 | % | | 906,410 |
| | 6,713 |
| | 2.94 | % | | 929,744 |
| | 6,929 |
| | 2.99 | % |
| Junior subordinated debentures | 111,213 |
| | 1,126 |
| | 4.01 | % | | 111,213 |
| | 1,119 |
| | 3.98 | % | | 116,626 |
| | 1,321 |
| | 4.43 | % | | 111,213 |
| | 1,274 |
| | 4.48 | % | | 103,094 |
| | 1,172 |
| | 4.50 | % |
| Total interest-bearing liabilities | 6,365,087 |
| | 10,008 |
| | 0.63 | % | | 6,463,148 |
| | 13,746 |
| | 0.86 | % | | 6,485,177 |
| | 14,486 |
| | 0.89 | % | | 6,159,109 |
| | 14,150 |
| | 0.91 | % | | 5,773,451 |
| | 13,792 |
| | 0.96 | % |
| Noninterest-bearing demand deposits (g) | 1,184,786 |
| | |
| | |
| | 1,161,151 |
| | |
| | |
| | 1,145,276 |
| | |
| | |
| | 1,054,270 |
| | | | | | 957,912 |
| | | | |
| Noninterest bearing liabilities | 177,300 |
| | |
| | |
| | 122,667 |
| | |
| | |
| | 133,323 |
| | |
| | |
| | 275,435 |
| | | | | | 77,075 |
| | | | |
| Total liabilities | 7,727,173 |
| | |
| | |
| | 7,746,966 |
| | |
| | |
| | 7,763,776 |
| | |
| | |
| | 7,488,814 |
| | | | | | 6,808,438 |
| | | | |
| Shareholders’ equity | 1,154,885 |
| | |
| | |
| | 1,164,035 |
| | |
| | |
| | 1,158,304 |
| | |
| | |
| | 1,125,305 |
| | | | | | 1,063,770 |
| | | | |
| Total liabilities and shareholders’ equity | $ | 8,882,058 |
| | |
| | |
| | $ | 8,911,001 |
| | |
| | |
| | $ | 8,922,080 |
| | |
| | |
| | $ | 8,614,119 |
| | | | | | $ | 7,872,208 |
| | | | |
| Net interest income/ Interest rate spread | |
| | 77,641 |
| | 3.71 | % | | |
| | 72,523 |
| | 3.38 | % | | |
| | 72,149 |
| | 3.31 | % | | |
| | 67,967 |
| | 3.33 | % | | | | 63,253 |
| | 3.25 | % |
| Net interest-earning assets/ Net interest margin | $ | 1,761,258 |
| | |
| | 3.82 | % | | $ | 1,712,291 |
| | |
| | 3.57 | % | | $ | 1,689,586 |
| | |
| | 3.53 | % | | $ | 1,608,571 |
| | |
| | 3.50 | % | | $ | 1,569,229 |
| | | | 3.45 | % |
| Ratio of interest-earning assets to interest-bearing liabilities | 1.28X |
| | |
| | |
| | 1.26X |
| | |
| | |
| | 1.26X |
| | |
| | |
| | 1.26X |
| | | | | | 1.27X |
| | | | |
(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 0.35%, 0.37%, 0.39%, 0.39% and 0.40%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.58%, 4.50%, 4.49%, 4.63% and 4.69%, respectively, Investment securities - 1.87%, 1.82%, 1.82%, 1.84% and 1.88%, respectively, Interest-earning assets - 4.29%, 4.20%, 4.16%, 4.19% and 4.15%, respectively. GAAP basis net interest rate spreads were 3.66%, 3.34%, 3.27%, 3.28% and 3.19%, respectively, and GAAP basis net interest margins were 3.77%, 3.55%, 3.48%, 3.45% and 3.39%, 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.
|
| | | | | | | | | | | | | | | | | | | |
| | Six months ended June 30, |
| | 2016 | | 2015 |
| | Average Balance | | Interest | | Avg. Yield/ Cost (h) | | Average Balance | | Interest | | Avg. Yield/ Cost (h) |
| Assets: | |
| | |
| | |
| | |
| | |
| | |
|
| Interest-earning assets: | |
| | |
| | |
| | |
| | |
| | |
|
| Residential mortgage loans | $ | 2,745,695 |
| | 60,013 |
| | 4.37 | % | | $ | 2,529,553 |
| | 56,650 |
| | 4.48 | % |
| Home equity loans | 1,170,653 |
| | 25,243 |
| | 4.34 | % | | 1,056,813 |
| | 22,875 |
| | 4.39 | % |
| Consumer loans | 516,419 |
| | 16,916 |
| | 6.59 | % | | 242,896 |
| | 12,819 |
| | 10.64 | % |
| Commercial real estate loans | 2,353,371 |
| | 52,684 |
| | 4.43 | % | | 1,829,724 |
| | 42,184 |
| | 4.59 | % |
| Commercial loans | 451,893 |
| | 9,625 |
| | 4.21 | % | | 387,755 |
| | 8,099 |
| | 4.15 | % |
| Loans receivable (a) (b) (d) | 7,238,031 |
| | 164,481 |
| | 4.57 | % | | 6,046,741 |
| | 142,627 |
| | 4.76 | % |
| Mortgage-backed securities (c) | 473,346 |
| | 4,344 |
| | 1.84 | % | | 492,209 |
| | 4,292 |
| | 1.74 | % |
| Investment securities (c) (d) | 350,553 |
| | 3,995 |
| | 2.28 | % | | 484,366 |
| | 6,006 |
| | 2.48 | % |
| FHLB stock (i) | 35,200 |
| | 868 |
| | 4.96 | % | | 35,872 |
| | 838 |
| | 4.71 | % |
| Other interest-earning deposits | 45,926 |
| | 129 |
| | 0.56 | % | | 252,210 |
| | 319 |
| | 0.25 | % |
| Total interest-earning assets | 8,143,056 |
| | 173,817 |
| | 4.29 | % | | 7,311,398 |
| | 154,082 |
| | 4.24 | % |
| Noninterest earning assets (e) | 753,474 |
| | |
| | |
| | 569,689 |
| | |
| | |
|
| Total assets | $ | 8,896,530 |
| | |
| | |
| | $ | 7,881,087 |
| | |
| | |
|
| | | | | | | | | | | | |
| Liabilities and shareholders’ equity: | |
| | |
| | |
| | |
| | |
| | |
|
| Interest-bearing liabilities: | |
| | |
| | |
| | |
| | |
| | |
|
| Savings deposits | $ | 1,423,343 |
| | 1,702 |
| | 0.24 | % | | $ | 1,247,854 |
| | 1,651 |
| | 0.27 | % |
| Interest-bearing demand deposits | 1,111,981 |
| | 300 |
| | 0.05 | % | | 899,260 |
| | 262 |
| | 0.06 | % |
| Money market deposit accounts | 1,291,457 |
| | 1,694 |
| | 0.26 | % | | 1,156,079 |
| | 1,524 |
| | 0.27 | % |
| Time deposits | 1,640,291 |
| | 8,257 |
| | 1.01 | % | | 1,430,989 |
| | 8,020 |
| | 1.13 | % |
| Borrowed funds (f) | 835,832 |
| | 9,556 |
| | 2.30 | % | | 945,192 |
| | 13,904 |
| | 2.97 | % |
| Junior subordinated debentures | 111,213 |
| | 2,245 |
| | 3.99 | % | | 103,094 |
| | 2,330 |
| | 4.50 | % |
| Total interest-bearing liabilities | 6,414,117 |
| | 23,754 |
| | 0.74 | % | | 5,782,468 |
| | 27,691 |
| | 0.97 | % |
| Noninterest-bearing demand deposits (g) | 1,109,662 |
| | |
| | |
| | 936,090 |
| | |
| | |
|
| Noninterest bearing liabilities | 213,301 |
| | |
| | |
| | 98,992 |
| | |
| | |
|
| Total liabilities | 7,737,080 |
| | |
| | |
| | 6,817,550 |
| | |
| | |
|
| Shareholders’ equity | 1,159,450 |
| | |
| | |
| | 1,063,537 |
| | |
| | |
|
| Total liabilities and shareholders’ equity | $ | 8,896,530 |
| | |
| | |
| | $ | 7,881,087 |
| | |
| | |
|
| Net interest income/ Interest rate spread | |
| | 150,063 |
| | 3.55 | % | | |
| | 126,391 |
| | 3.27 | % |
| Net interest-earning assets/ Net interest margin | $ | 1,728,939 |
| | |
| | 3.69 | % | | $ | 1,528,930 |
| | |
| | 3.46 | % |
| Ratio of interest-earning assets to interest-bearing liabilities | 1.27X |
| | |
| | |
| | 1.26X |
| | |
| | |
|
(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 0.37%, and 0.41%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.54% and 4.73%, respectively, Investment securities - 1.84% and 1.93%, respectively, Interest-earning assets - 4.25% and 4.18%, respectively. GAAP basis net interest rate spreads were 3.51% and 3.21%, respectively, and GAAP basis net interest margins were 3.64% and 3.40%, respectively.
(i) Excludes a $1.0 million special dividend paid in February 2015 from the average yield calculation.
