NORTHWEST BANCSHARES, INC. WARREN, Pa., Jan. 23, 2017 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2016 of $24.5 million, or $0.24 per diluted share. This represents an increase of $8.3 million, or 51.3%, compared to the same quarter last year when net income was $16.2 million or $0.16 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended December 31, 2016 were 8.37% and 1.01% compared to 5.55% and 0.73% for the same quarter last year.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.16 per share payable on February 16, 2017, to shareholders of record as of February 2, 2017. This represents a 6.67% increase over the prior year and is the 89th consecutive quarter in which the Company has paid a cash dividend.
In making this announcement, William J. Wagner, President and CEO, noted, "The results of the fourth quarter when compared to the previous year reflect the earnings accretion we expected from both the LNB merger and the First Niagara branch acquisition. As a result of these acquisitions our checking accounts have increased by 37% over the last two years and time deposits have decreased to less than 20% of total deposits. This change in deposit mix has increased our net interest margin from 3.53% to 3.75%. These acquisitions along with the recently announced plan to divest our three offices in Maryland better defines our footprint for the future and establishes a framework for increased revenue growth and greater efficiency."
Net interest income increased by $11.7 million, or 16.6%, to $82.9 million for the quarter ended December 31, 2016, from $71.2 million for the quarter ended December 31, 2015. This increase is due primarily to a $4.8 million, or 5.9%, increase in interest income on loans and a $6.8 million, or 84.7% decrease in interest expense on borrowed funds. The increase in loan interest income is a result of a $580.1 million increase in the average balance of the Company's loan portfolio from the same quarter last year, while the decrease in interest expense on borrowed funds is due primarily to the payoff of Federal Home Loan Bank ("FHLB") advances with the funds received from the purchase of deposits in western New York.
The provision for loan losses decreased by $2.5 million, or 53.3%, to $2.1 million for the quarter ended December 31, 2016, from $4.6 million for the quarter ended December 31, 2015. This decrease is due primarily to a decrease in the percentage of total loan delinquency to total loans to 1.61% at December 31, 2016 from 1.87% at December 31, 2015.
Noninterest income increased by $5.3 million, or 27.0%, to $24.8 million for the quarter ended December 31, 2016, from $19.5 million for the quarter ended December 31, 2015. Contributing to this increase was an increase in mortgage banking income of $2.1 million, which is the result of resuming the sale of mortgage loans originated by the Wholesale Lending Division. Also contributing to this increase was an increase in service charges and fees of $1.9 million, or 17.8%, which is primarily attributable to the growth in checking accounts from both acquisitions, and internal growth initiatives. Additionally, trust and other financial services income increased by $721,000, or 21.1%, due primarily to the approximately $450.0 million of wealth management assets acquired with the western New York branch purchase.
Noninterest expense increased by $7.6 million, or 12.3%, to $68.8 million for the quarter ended December 31, 2016, from $61.2 million for the quarter ended December 31, 2015. This increase resulted primarily from a $4.6 million, or 14.3%, increase in compensation and employee benefits due primarily to the costs associated with the employees added from the 18 western New York branches. The other increases for the current quarter compared to the prior year are also primarily attributable to incremental expenses from the additional branches. Partially offsetting these increases were decreases in federal deposit insurance premiums and collection expense of $824,000 and $815,000, respectively.
Net income for the year ended December 31, 2016 was $49.7 million, or $0.49 per diluted share, which represents a decrease of $10.8 million, or 18.0%, compared to the year ended December 31, 2015, when net income was $60.5 million, or $0.64 per diluted share. The annualized returns on average shareholders' equity and average assets for the year ended December 31, 2016 were 4.28% and 0.55%, respectively, compared to 5.49% and 0.73% for the same period last year. This decrease is due primarily to a $37.0 million penalty incurred from the prepayment of FHLB borrowings, acquisition and restructuring expenses of $12.2 million, and ESOP termination expense of $5.1 million.
Non-GAAP net operating income for the year ended December 31, 2016, which excludes the after-tax impact of the aforementioned FHLB prepayment penalty, restructuring and acquisition expenses, and ESOP termination expenses totaling $34.7 million, was $84.3 million, or $0.84 per diluted share. This represents an increase of $17.3 million, or 25.8%, compared to the year ended December 31, 2015 with non-GAAP net operating income of $67.0 million, or $0.71 per diluted share. The non-GAAP annualized returns on average shareholders' equity and average assets for the year ended December 31, 2016 were 7.27% and 0.93%, respectively, compared to 6.08% and 0.80% for the same period last year.
The Company previously announced that it has entered into a purchase and assumption agreement to sell three bank branches located in the greater Baltimore, Maryland area to Shore Bancshares, Inc.'s banking subsidiary, Shore United Bank. This divestiture includes approximately $216.0 million of deposits, $147.0 million of performing loans and $40.0 million of cash. The transaction includes a deposit premium of 8.0% and based on the amounts at the time the agreement was signed Northwest anticipates recording a gain of approximately $17.0 million. The sale is expected to close during the second quarter of 2017.
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 167 full-service community banking offices and nine free standing drive-through facilities in Pennsylvania, New York, Ohio and Maryland and 49 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)
December 31, September 30, December 31,
2016 2016 2015
---- ---- ----
Assets
Cash and cash
equivalents $119,403 107,604 92,263
Interest-earning
deposits in other
financial
institutions 266,902 210,723 74,510
Federal funds sold and
other short-term
investments 3,562 2,239 635
Marketable securities
available-for-sale
(amortized cost of
$825,552, $879,141
and $868,956,
respectively) 826,200 890,688 874,405
Marketable securities
held-to-maturity
(fair value of
$20,426, $23,249 and
$32,552 ,
respectively) 19,978 22,584 31,689
------ ------ ------
Total cash, interest-
earning deposits and
marketable securities 1,236,045 1,233,838 1,073,502
Residential mortgage
loans held-for-sale 9,625 30,355 -
Residential mortgage
loans 2,705,139 2,788,658 2,740,892
Home equity loans 1,328,772 1,349,105 1,187,106
Consumer loans 642,961 628,512 520,289
Commercial real estate
loans 2,342,089 2,464,681 2,351,434
Commercial loans 528,761 537,255 422,400
------- ------- -------
Total loans receivable 7,557,347 7,798,566 7,222,121
Allowance for loan
losses (60,939) (63,246) (62,672)
------- ------- -------
Loans receivable, net 7,496,408 7,735,320 7,159,449
Assets held-for-sale 152,528 - -
Federal Home Loan Bank
stock, at cost 7,390 7,660 40,903
Accrued interest
receivable 21,699 21,591 21,072
Real estate owned, net 4,889 4,841 8,725
Premises and
equipment, net 161,185 167,596 154,351
Bank owned life
insurance 171,449 170,172 168,509
Goodwill 307,420 307,711 261,736
Other intangible
assets 32,433 33,901 8,982
Other assets 32,194 31,977 54,670
------ ------ ------
Total assets $9,623,640 9,714,607 8,951,899
========== ========= =========
Liabilities and Shareholders' equity
Liabilities
Noninterest-bearing
demand deposits $1,448,972 1,496,574 1,177,256
Interest-bearing
demand deposits 1,428,317 1,446,971 1,080,086
Money market deposit
accounts 1,841,567 1,896,272 1,274,504
Savings deposits 1,622,879 1,671,539 1,386,017
Time deposits 1,540,586 1,691,447 1,694,718
--------- --------- ---------
Total deposits 7,882,321 8,202,803 6,612,581
Liabilities held-for-
sale 215,657 - -
Borrowed funds 142,899 135,891 975,007
Advances by borrowers
for taxes and
insurance 36,879 21,616 33,735
Accrued interest
payable 635 682 1,993
Other liabilities 63,373 79,599 54,207
Junior subordinated
debentures 111,213 111,213 111,213
------- ------- -------
Total liabilities 8,452,977 8,551,804 7,788,736
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,
101,699,406 shares,
101,268,648 shares
and 101,871,737
issued and
outstanding,
respectively 1,017 1,013 1,019
Paid-in-capital 718,834 711,974 717,603
Retained earnings 478,803 469,459 489,292
Unallocated common
stock of Employee
Stock Ownership Plan - - (20,216)
Accumulated other
comprehensive loss (27,991) (19,643) (24,535)
------- ------- -------
Total shareholders'
equity 1,170,663 1,162,803 1,163,163
--------- --------- ---------
Total liabilities and
shareholders' equity $9,623,640 9,714,607 8,951,899
========== ========= =========
Equity to assets 12.16% 11.97% 12.99%
Tangible common equity
to assets 8.95% 8.76% 10.28%
Book value per share $11.51 11.48 11.42
Tangible book value
per share $8.17 8.11 8.76
Closing market price
per share $18.03 15.71 13.39
Full time equivalent
employees 2,306 2,268 2,186
Number of banking
offices 176 176 181
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share amounts)
Quarter ended
December 31, September 30, June 30, March 31, December 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
Interest income:
Loans receivable $85,669 81,083 81,506 80,781 80,882
Mortgage-backed securities 2,166 2,030 2,115 2,229 2,301
Taxable investment securities 988 627 756 1,038 1,108
Tax-free investment securities 625 676 707 724 836
FHLB dividends 285 218 401 467 499
Interest-earning deposits 300 114 70 59 13
--- --- --- --- ---
Total interest income 90,033 84,748 85,555 85,298 85,639
Interest expense:
Deposits 5,859 5,653 5,865 6,088 6,435
Borrowed funds 1,232 1,801 4,143 7,658 8,051
----- ----- ----- ----- -----
Total interest expense 7,091 7,454 10,008 13,746 14,486
Net interest income 82,942 77,294 75,547 71,552 71,153
Provision for loan losses 2,145 5,538 4,199 1,660 4,595
----- ----- ----- ----- -----
Net interest income after provision for loan losses 80,797 71,756 71,348 69,892 66,558
Noninterest income:
Gain on sale of investments 213 58 227 127 116
Service charges and fees 12,406 11,012 10,630 10,065 10,530
Trust and other financial services income 4,131 3,434 3,277 3,261 3,410
Insurance commission income 2,499 2,541 2,768 2,714 2,490
Gain/ (loss) on real estate owned, net 164 (563) 111 249 (156)
Income from bank owned life insurance 1,281 1,380 1,105 1,595 1,251
Mortgage banking income 2,344 1,886 446 218 208
Other operating income 1,781 1,070 1,711 1,219 1,697
----- ----- ----- ----- -----
Total noninterest income 24,819 20,818 20,275 19,448 19,546
Noninterest expense:
Compensation and employee benefits 36,562 38,122 33,210 33,033 32,003
Premises and occupancy costs 7,228 6,094 6,275 6,537 6,403
Office operations 4,395 3,700 3,343 3,460 3,252
Collections expense 437 589 729 676 1,252
Processing expenses 9,429 8,844 8,172 8,414 8,057
Marketing expenses 2,181 2,239 2,541 1,891 1,642
Federal deposit insurance premiums 475 984 1,442 1,503 1,299
Professional services 2,088 1,815 2,129 1,833 1,933
Amortization of intangible assets 1,806 1,068 710 675 729
Real estate owned expense 192 206 295 311 393
Restructuring/ acquisition expense 1,009 7,183 3,386 635 1,347
FHLB prepayment penalty - - 36,978 - -
Other expense 2,959 2,836 2,912 4,307 2,917
----- ----- ----- ----- -----
Total noninterest expense 68,761 73,680 102,122 63,275 61,227
------ ------ ------- ------ ------
Income/ (loss) before income taxes 36,855 18,894 (10,499) 26,065 24,877
Income tax expense/ (benefit) 12,361 4,697 (3,491) 8,081 8,684
------ ----- ------ ----- -----
Net income/ (loss) $24,494 14,197 (7,008) 17,984 $16,193
======= ====== ====== ====== =======
Basic earnings/ (loss) per share $0.24 0.14 (0.07) 0.18 0.16
Diluted earnings/ (loss) per share $0.24 0.14 (0.07) 0.18 0.16
Weighted average common shares outstanding - basic 100,219,370 99,602,535 99,177,609 98,889,744 98,741,393
Weighted average common shares outstanding - diluted 102,089,892 101,068,245 100,243,442 99,380,009 99,500,056
Annualized return on average equity 8.37% 4.89% (2.44)% 6.21% 5.55%
Annualized return on average assets 1.01% 0.63% (0.32)% 0.81% 0.73%
Annualized return on tangible common equity 11.73% 6.88% (3.18)% 8.03% 7.20%
Efficiency ratio * 61.20% 66.69% 63.71% 68.09% 65.22%
Annualized noninterest expense to average assets * 2.73% 2.88% 2.76% 2.80% 2.63%
* Excludes restructuring/ acquisition expenses, FHLB prepayment penalty, and amortization of intangible assets (non-GAAP).
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share amounts)
Year Ended December 31,
2016 2015
---- ----
Interest income:
Loans receivable $329,039 298,665
Mortgage-backed
securities 8,540 8,823
Taxable investment
securities 3,409 4,520
Tax-free investment
securities 2,732 4,313
FHLB dividends 1,371 2,828
Interest-earning
deposits 543 431
--- ---
Total interest income 345,634 319,580
Interest expense:
Deposits 23,465 24,055
Borrowed funds 14,834 32,272
------ ------
Total interest expense 38,299 56,327
Net interest income 307,335 263,253
Provision for loan
losses 13,542 9,712
------ -----
Net interest income
after provision for
loan losses 293,793 253,541
Noninterest income:
Gain on sale of
investments 625 1,037
Service charges and
fees 44,113 38,362
Trust and other
financial services
income 14,103 12,342
Insurance commission
income 10,522 9,526
Loss on real estate
owned, net (39) (1,989)
Income from bank owned
life insurance 5,361 4,338
Mortgage banking
income 4,894 933
Other operating income 5,781 4,287
----- -----
Total noninterest
income 85,360 68,836
Noninterest expense:
Compensation and
employee benefits 140,927 119,818
Premises and occupancy
costs 26,134 24,641
Office operations 14,898 12,337
Collections expense 2,431 3,247
Processing expenses 34,859 30,780
Marketing expenses 8,852 8,499
Federal deposit
insurance premiums 4,404 5,109
Professional services 7,865 6,906
Amortization of
intangible assets 4,259 1,688
Real estate owned
expense 1,004 2,070
Restructuring/
acquisition expense 12,213 9,751
FHLB prepayment
penalty 36,978 -
Other expense 13,014 9,031
------ -----
Total noninterest
expense 307,838 233,877
------- -------
Income before income
taxes 71,315 88,500
Income tax expense 21,648 27,960
------ ------
Net income $49,667 60,540
======= ======
Basic earnings per
share $0.50 0.64
Diluted earnings per
share $0.49 0.64
Weighted average
common shares
outstanding -basic 99,439,174 94,314,420
Weighted average
common shares
outstanding -diluted 100,664,688 94,829,789
Annualized return on
average equity 4.28% 5.49%
Annualized return on
average assets 0.55% 0.73%
Annualized return on
tangible common
equity 5.98% 6.78%
Efficiency ratio * 64.78% 66.98%
Annualized noninterest
expense to average
assets * 2.79% 2.67%
* Excludes restructuring/acquisition expenses, FHLB prepayment penalty, and amortization of intangible assets (non-
GAAP).
Northwest Bancshares, Inc. and Subsidiaries
Reconciliation of Non-GAAP to GAAP Net Income (Unaudited) *
(Dollars in thousands, except per share amounts)
Quarter ended Year ended
December 31, December 31,
2016 2015 2016 2015
---- ---- ---- ----
Operating results (non-GAAP):
Net interest income $82,942 71,153 307,335 263,253
Provision for loan losses 2,145 4,595 13,542 9,712
Noninterest income 24,819 19,546 85,360 68,836
Noninterest expense 67,752 59,880 253,510 224,126
Income taxes 12,724 9,111 41,322 31,239
------ ----- ------ ------
Net operating income (non-GAAP) $25,140 17,113 84,321 67,012
======= ====== ====== ======
Diluted earnings per share (non-GAAP) $0.25 0.17 0.84 0.71
===== ==== ==== ====
Average equity $1,164,127 1,158,304 1,159,791 1,102,671
Average assets 9,624,403 8,922,080 9,111,587 8,324,593
Annualized ROE (non-GAAP) 8.59% 5.86% 7.27% 6.08%
Annualized ROA (non-GAAP) 1.04% 0.76% 0.93% 0.80%
Reconciliation of net operating income to net income:
Net operating income (non-GAAP) $25,140 17,113 84,321 67,012
Nonoperating expenses, net of tax:
Restructuring/ acquisition expenses (646) (920) (6,744) (6,472)
Stock-based compensation expense - ESOP - - (3,669) -
FHLB prepayment penalty - - (24,241) -
--- --- ------- ---
Net income/ (loss) (GAAP) $24,494 16,193 49,667 60,540
======= ====== ====== ======
Diluted earnings per share (GAAP) $0.24 0.16 0.49 0.64
===== ==== ==== ====
Annualized ROE (GAAP) 8.37% 5.55% 4.28% 5.49%
Annualized ROA (GAAP) 1.01% 0.73% 0.55% 0.73%
* 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, prepayment penalties,
and compensation expense related
to the Northwest Bank ESOP
termination, 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.
Reconciliation of Assets and Liabilities Held-For-Sale (Unaudited)
(Dollars in thousands)
Balance at
December 31,
2016
----
Assets held-for-sale:
---------------------
Residential mortgage loans $26,406
Home equity loans 15,725
Consumer loans 522
Commercial real estate loans 101,123
Commercial loans 2,884
-----
Total loans 146,660
Accrued interest receivable 416
Premises and equipment, net 5,452
Total assets held-for-sale $152,528
========
Liabilities held-for-sale:
--------------------------
Noninterest-bearing demand
deposits $34,657
Interest-bearing demand deposits 17,181
Money market deposit accounts 45,806
Savings deposits 55,205
Time deposits 62,800
------
Total deposits 215,649
Accrued interest payable 8
Total liabilities held-for-sale $215,657
========
Northwest Bancshares, Inc. and Subsidiaries
Asset quality (Unaudited)
(Dollars in thousands)
December 31, September 30, June 30, March 31, December 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
Nonaccrual loans current:
Residential mortgage loans $2,109 3,063 2,017 1,678 1,393
Home equity loans 1,451 1,446 1,092 1,118 1,108
Consumer loans 520 464 277 190 140
Commercial real estate loans 13,955 19,246 17,456 19,350 14,018
Commercial loans 5,361 7,299 4,462 5,923 4,604
----- ----- ----- ----- -----
Total nonaccrual loans current $23,396 31,518 25,304 28,259 21,263
======= ====== ====== ====== ======
Nonaccrual loans delinquent 30 days to 59 days:
Residential mortgage loans $1,464 344 - 1,600 430
Home equity loans 422 315 49 119 375
Consumer loans 400 211 95 164 97
Commercial real estate loans 3,478 514 151 3,371 2,192
Commercial loans 145 185 16 4 322
--- --- --- --- ---
Total nonaccrual loans delinquent 30 days to 59 days $5,909 1,569 311 5,258 3,416
====== ===== === ===== =====
Nonaccrual loans delinquent 60 days to 89 days:
Residential mortgage loans $1,522 1,270 1,524 721 2,139
Home equity loans 440 465 366 504 389
Consumer loans 366 250 157 182 315
Commercial real estate loans 2,027 151 6,513 109 762
Commercial loans 695 319 1,748 57 110
--- --- ----- --- ---
Total nonaccrual loans delinquent 60 days to 89 days $5,050 2,455 10,308 1,573 3,715
====== ===== ====== ===== =====
Nonaccrual loans delinquent 90 days or more:
Residential mortgage loans $13,169 13,242 14,829 14,301 15,810
Home equity loans 5,552 5,874 5,226 5,922 5,650
Consumer loans 3,823 3,354 2,374 2,360 2,900
Commercial real estate loans 19,264 22,155 12,960 13,165 16,449
Commercial loans 3,373 6,105 4,566 3,314 2,459
----- ----- ----- ----- -----
Total nonaccrual loans delinquent 90 days or more $45,181 50,730 39,955 39,062 43,268
======= ====== ====== ====== ======
Total nonaccrual loans $79,536 86,272 75,878 74,152 71,662
======= ====== ====== ====== ======
Total nonaccrual loans $79,536 86,272 75,878 74,152 71,662
Loans 90 days past maturity and still accruing 649 103 472 894 1,334
--- --- --- --- -----
Nonperforming loans 80,185 86,375 76,350 75,046 72,996
Real estate owned, net 4,889 4,841 4,950 6,834 8,725
----- ----- ----- -----
Nonperforming assets $85,074 91,216 81,300 81,880 81,721
======= ====== ====== ====== ======
Nonaccrual troubled debt restructuring * $16,346 17,374 18,098 17,699 21,118
Accruing troubled debt restructuring 26,580 29,221 31,015 30,549 29,997
------ ------ ------ ------ ------
Total troubled debt restructuring $42,926 46,595 49,113 48,248 51,115
======= ====== ====== ====== ======
Nonperforming loans to total loans 1.06% 1.11% 1.05% 1.03% 1.01%
Nonperforming assets to total assets 0.88% 0.94% 0.91% 0.92% 0.91%
Allowance for loan losses to total loans 0.81% 0.81% 0.83% 0.85% 0.87%
Allowance for loan losses to nonperforming loans 76.00% 73.22% 79.61% 82.99% 85.86%
* Amounts included in nonperforming loans above.
Northwest Bancshares, Inc. and Subsidiaries
Exposure to the oil and gas industry (Unaudited)
(Dollars in thousands)
December 31, September 30, June 30, March 31, December 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
Direct exposure to oil and gas extraction:
Outstanding balance $12,080 13,109 12,844 13,764 16,619
Commitments 15,318 16,511 16,542 18,450 19,576
Impaired - 558 561 564 564
Reserve 500 511 548 594 626
Indirect exposure: *
Outstanding balance 44,602 44,781 58,399 54,465 56,659
Commitments 48,025 48,927 62,581 58,522 68,659
Impaired - 761 611 - -
Reserve 231 237 220 195 34
Total exposure:
Outstanding balance 56,682 57,890 71,243 68,229 73,278
Commitments 63,343 65,438 79,123 76,972 88,235
Impaired - 1,319 1,172 564 564
Reserve 731 748 768 789 660
* Includes loans to haulers, wholesalers, and refineries.
Northwest Bancshares, Inc. and Subsidiaries
Loans by credit quality indicators (Unaudited)
(Dollars in thousands)
At December 31, 2016 Pass Special Substandard Doubtful Loss Loans
mention **
* receivable
--- --- ----------
Personal Banking:
Residential mortgage loans $2,696,705 - 18,059 - - 2,714,764
Home equity loans 1,318,998 - 9,774 - - 1,328,772
Consumer loans 639,044 - 3,917 - - 642,961
------- --- ----- --- --- -------
Total Personal Banking 4,654,747 - 31,750 - - 4,686,497
Commercial Banking:
Commercial real estate loans 2,153,328 43,724 145,037 - - 2,342,089
Commercial loans 469,993 17,192 41,576 - - 528,761
------- ------ ------ --- --- -------
Total Commercial Banking 2,623,321 60,916 186,613 - - 2,870,850
--------- ------ ------- --- --- ---------
Total loans $7,278,068 60,916 218,363 - - 7,557,347
========== ====== ======= === === =========
At September 30, 2016
---------------------
Personal Banking:
Residential mortgage loans $2,800,420 - 18,593 - - 2,819,013
Home equity loans 1,338,643 - 10,462 - - 1,349,105
Consumer loans 624,885 - 3,627 - - 628,512
------- --- ----- --- --- -------
Total Personal Banking 4,763,948 - 32,682 - - 4,796,630
Commercial Banking:
Commercial real estate loans 2,265,816 61,763 137,088 14 - 2,464,681
Commercial loans 479,321 14,707 40,326 2,901 - 537,255
------- ------ ------ ----- --- -------
Total Commercial Banking 2,745,137 76,470 177,414 2,915 - 3,001,936
Total loans $7,509,085 76,470 210,096 2,915 - 7,798,566
========== ====== ======= ===== === =========
At June 30, 2016
----------------
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
========== ====== ======= ===== ===== =========
* Includes $9.4 million $19.3
million, $7.6 million, $7.7
million, and $7.6 million of
acquired loans at December 31,
2016, September 30, 2016, June
30, 2016, March 31, 2016, and
December 31, 2015,
respectively.
** Includes $39.1 million, $29.8
million, $25.5 million, $17.9
million, and $18.6 million of
acquired loans at December 31,
2016, September 30, 2016 June
31, 2016, March 31, 2016, and
December 31, 2015,
respectively.
Northwest Bancshares, Inc. and Subsidiaries
Loan delinquency (Unaudited)
(Dollars in thousands)
December 31, * September 30, * June 30, * March 31, * December 31, *
2016 2016 2016 2015
2016
(Number of loans and dollar amount of loans)
Loans delinquent 30 days to 59 days:
Residential mortgage loans 360 $27,386 1.0% 74 $3,380 0.1% 72 $3,353 0.1% 323 $24,494 0.9% 349 $25,943 0.9%
Home equity loans 179 6,805 0.5% 164 4,984 0.4% 128 4,988 0.4% 132 5,351 0.5% 173 5,806 0.5%
Consumer loans 1,497 9,868 1.5% 1,269 7,583 1.2% 1,144 6,725 1.2% 895 5,511 1.0% 1,234 7,101 1.4%
Commercial real estate loans 61 10,377 0.4% 28 3,855 0.2% 34 4,828 0.2% 51 27,474 1.2% 48 24,877 1.1%
Commercial loans 20 1,178 0.2% 26 1,493 0.3% 15 533 0.1% 26 3,133 0.7% 31 2,868 0.7%
--- ----- --- ----- --- --- --- ----- --- -----
Total loans delinquent 30 days to 59 days 2,117 $55,614 0.7% 1,561 $21,295 0.3% 1,393 $20,427 0.3% 1,427 $65,963 0.9% 1,835 $66,595 0.9%
===== ======= ===== ======= ===== ======= ===== ======= ===== =======
Loans delinquent 60 days to 89 days:
Residential mortgage loans 80 $6,227 0.2% 76 $6,174 0.2% 74 $5,633 0.2% 21 $1,358 - % 100 $7,790 0.3%
Home equity loans 62 1,563 0.1% 41 1,145 0.1% 42 1,435 0.1% 36 1,256 0.1% 50 2,478 0.2%
Consumer loans 636 3,609 0.6% 532 2,673 0.4% 514 2,247 0.4% 379 1,803 0.3% 521 2,521 0.5%
Commercial real estate loans 25 4,495 0.2% 13 1,102 - % 16 8,765 0.4% 11 1,081 - % 21 8,228 0.3%
Commercial loans 21 2,081 0.4% 9 594 0.1% 23 2,429 0.5% 7 375 0.1% 7 598 0.1%
--- ----- --- --- --- ----- --- --- --- ---
Total loans delinquent 60 days to 89 days 824 $17,975 671 $11,688 0.1% 669 $20,509 0.3% 454 $5,873 0.3% 699 $21,615 0.3%
=== ======= === ======= === ======= === ====== === =======
Loans delinquent 90 days or more: **
Residential mortgage loans 169 $13,621 0.5% 168 $13,478 0.5% 176 $15,046 0.5% 183 $14,673 0.5% 215 $16,350 0.6%
Home equity loans 155 5,756 0.4% 137 6,022 0.4% 124 5,422 0.5% 120 6,200 0.5% 143 6,112 0.5%
Consumer loans 646 3,838 0.6% 757 3,372 0.5% 440 2,399 0.4% 557 2,386 0.5% 523 2,926 0.6%
Commercial real estate loans 101 21,270 0.9% 106 24,533 1.0% 107 15,244 0.6% 106 15,442 0.7% 113 19,031 0.8%
Commercial loans 37 3,520 0.7% 28 6,249 1.2% 32 4,709 1.0% 34 3,456 0.7% 25 2,599 0.6%
--- ----- --- ----- --- ----- --- ----- --- -----
Total loans delinquent 90 days or more 1,108 $48,005 0.6% 1,196 $53,654 0.7% 879 $42,820 0.6% 1,000 $42,157 0.6% 1,019 $47,018 0.7%
===== ======= ===== ======= === ======= ===== ======= ===== =======
Total loans delinquent 4,049 $121,594 1.6% 3,428 $86,637 1.1% 2,941 $83,756 1.1% 2,881 $113,993 1.6% 3,553 $135,228 1.9%
===== ======== ===== ======= ===== ======= ===== ======== ===== ========
* Represents delinquency, in
dollars, divided by the
respective total amount of that
type of loan outstanding.
** Includes purchased credit
impaired loans of $2.8 million,
$2.9 million, $2.9 million,
$3.1 million, and $3.7 million
at December 31, 2016, September
30, 2016, June 30, 2016, March
31, 2016, and December 31, 2015
respectively.
Northwest Bancshares, Inc. and Subsidiaries
Allowance for loan losses (Unaudited)
(Dollars in thousands)
Quarter ended
December 31, September 30, June 30, March 31, December 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
Beginning balance $63,246 60,781 62,278 62,672 60,547
Provision 2,145 5,538 4,199 1,660 4,595
Charge-offs residential mortgage (710) (354) (1,852) (564) (171)
Charge-offs home equity (321) (288) (946) (984) (1,097)
Charge-offs consumer (3,469) (2,701) (2,332) (2,403) (2,561)
Charge-offs commercial real estate (323) (789) (1,731) (897) (1,216)
Charge-offs commercial (2,489) (708) (903) (117) (508)
Recoveries 2,860 1,767 2,068 2,911 3,083
----- ----- ----- ----- -----
Ending balance $60,939 63,246 60,781 62,278 62,672
======= ====== ====== ====== ======
Net charge-offs to average loans, annualized 0.23% 0.17% 0.31% 0.11% 0.14%
Year Ended December 31,
2016 2015
---- ----
Beginning balance $62,672 67,518
Provision 13,542 9,712
Charge-offs
residential mortgage (3,480) (1,126)
Charge-offs home
equity (2,539) (2,424)
Charge-offs consumer (10,905) (8,274)
Charge-offs
commercial real
estate (3,740) (6,326)
Charge-offs commercial (4,217) (8,183)
Recoveries 9,606 11,775
----- ------
Ending balance $60,939 62,672
======= ======
Net charge-offs to
average loans,
annualized 0.21% 0.23%
Northwest Bancshares, Inc. and Subsidiaries
Average balance sheet (Unaudited)
(Dollars in thousands)
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
Quarter ended
December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 December 31, 2015
Average Interest Avg. Average Interest Avg. Average Interest Avg. Average Interest Avg. Average Interest Avg.
Balance Yield/ Balance Yield/ Balance Yield/ Balance Yield/
Balance Yield/ Cost (h) Cost (h) Cost (h) Cost (h)
Cost (h)
-------
Assets:
-------
Interest-earning assets:
Residential mortgage loans $2,766,693 28,165 4.07% $2,739,099 27,952 4.08% $2,751,601 29,089 4.23% $2,739,787 29,786 4.35% $2,710,811 29,227 4.31%
Home equity loans 1,346,856 14,442 4.27% 1,192,929 12,884 4.30% 1,163,900 12,701 4.39% 1,177,406 12,642 4.32% 1,193,433 12,753 4.24%
Consumer loans 620,294 10,083 6.47% 554,954 8,931 6.40% 522,745 8,697 6.69% 510,091 8,219 6.48% 500,175 8,805 6.98%
Commercial real estate loans 2,467,569 27,863 4.42% 2,394,001 26,683 4.36% 2,356,994 26,691 4.48% 2,349,748 25,993 4.38% 2,331,769 25,972 4.36%
Commercial loans 527,330 5,682 4.27% 476,715 5,193 4.26% 461,808 4,902 4.20% 441,977 4,723 4.23% 412,415 4,671 4.43%
------- ----- ------- ----- ------- ----- ------- ----- ------- -----
Total loans receivable (a) (b) (d) 7,728,742 86,235 4.44% 7,357,698 81,643 4.41% 7,257,048 82,080 4.55% 7,219,009 81,363 4.53% 7,148,603 81,428 4.52%
Mortgage-backed securities (c) 482,707 2,166 1.79% 440,966 2,030 1.84% 458,398 2,115 1.85% 488,294 2,229 1.83% 519,736 2,301 1.77%
Investment securities (c) (d) 401,602 1,950 1.94% 275,718 1,667 2.42% 313,647 1,844 2.35% 387,460 2,151 2.22% 427,363 2,394 2.24%
FHLB stock 7,575 285 4.54% 27,761 218 3.12% 33,302 401 4.84% 37,098 467 5.06% 38,651 499 5.12%
Other interest-earning deposits 325,889 300 0.36% 91,243 114 0.49% 63,950 70 0.43% 43,578 59 0.54% 40,410 13 0.13%
------- --- ------ --- ------ --- ------ --- ------ ---
Total interest-earning assets 8,946,515 90,936 4.04% 8,193,386 85,672 4.16% 8,126,345 86,510 4.28% 8,175,439 86,269 4.24% 8,174,763 86,635 4.20%
Noninterest earning assets (e) 677,888 835,500 755,713 735,562 747,317
------- ------- ------- ------- -------
Total assets $9,624,403 $9,028,886 $8,882,058 $8,911,001 $8,922,080
========== ========== ========== ========== ==========
Liabilities and shareholders' equity:
-------------------------------------
Interest-bearing liabilities:
Savings deposits $1,668,492 771 0.18% $1,485,763 744 0.20% $1,440,886 837 0.23% $1,405,800 865 0.25% $1,378,377 871 0.25%
Interest-bearing demand deposits 1,431,671 85 0.02% 1,179,557 78 0.03% 1,130,122 144 0.05% 1,093,839 156 0.06% 1,083,524 157 0.06%
Money market deposit accounts 1,890,220 1,101 0.23% 1,418,779 826 0.23% 1,294,381 829 0.26% 1,288,535 865 0.27% 1,279,181 873 0.27%
Time deposits 1,643,785 3,902 0.94% 1,597,542 4,005 1.00% 1,616,260 4,055 1.01% 1,664,322 4,202 1.02% 1,720,895 4,534 1.05%
Borrowed funds (f) 143,540 61 0.17% 560,407 657 0.47% 772,225 3,017 1.57% 899,439 6,539 2.92% 906,574 6,730 2.95%
Junior subordinated debentures 111,213 1,171 4.12% 111,213 1,144 4.03% 111,213 1,126 4.01% 111,213 1,119 3.98% 116,626 1,321 4.43%
------- ----- ------- ----- ------- ----- ------- ----- ------- -----
Total interest-bearing liabilities 6,888,921 7,091 0.41% 6,353,261 7,454 0.47% 6,365,087 10,008 0.63% 6,463,148 13,746 0.86% 6,485,177 14,486 0.89%
Noninterest-bearing demand deposits (g) 1,493,528 1,243,474 1,184,786 1,161,151 1,145,276
Noninterest bearing liabilities 77,827 276,014 177,300 122,667 133,323
------ ------- ------- ------- -------
Total liabilities 8,460,276 7,872,749 7,727,173 7,746,966 7,763,776
Shareholders' equity 1,164,127 1,156,137 1,154,885 1,164,035 1,158,304
--------- --------- --------- --------- ---------
Total liabilities and shareholders' equity $9,624,403 $9,028,886 $8,882,058 $8,911,001 $8,922,080
========== ========== ========== ========== ==========
Net interest income/ Interest rate spread 83,845 3.63% 78,218 3.69% 76,502 3.65% 72,523 3.38% 72,149 3.31%
Net interest-earning assets/ Net interest margin $2,057,594 3.75% $1,840,125 3.82% $1,761,258 3.77% $1,712,291 3.57% $1,689,586 3.53%
Ratio of interest-earning assets to interest-bearing
liabilities 1.30X 1.29X 1.28X 1.26X 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 0.29%, 0.32%, 0.35%,
0.37% and 0.39%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the
periods indicated were: Loans - 4.41%, 4.38%, 4.52%,
4.50% and 4.49%, respectively, Investment securities -
1.61%, 1.89%, 1.87%, 1.82% and 1.82%, respectively,
Interest-earning assets - 4.00%, 4.11%, 4.23%, 4.20%
and 4.16%, respectively. GAAP basis net interest rate
spreads were 3.59%, 3.65%, 3.60%, 3.34% and 3.27%,
respectively, and GAAP basis net interest margins were
3.71%, 3.77%, 3.72%, 3.55% and 3.48%, respectively.
Northwest Bancshares, Inc. and Subsidiaries
Average balance sheet (Unaudited)
(Dollars in thousands)
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
Year Ended December 31,
2016 2015
Average Interest Avg. Average Interest Avg.
Balance Yield/ Balance Yield/
Cost (h) Cost (h)
------- -------
Assets:
-------
Interest-earning assets:
Residential mortgage loans $2,749,314 114,991 4.18% $2,601,111 114,937 4.42%
Home equity loans 1,220,220 52,671 4.32% 1,105,887 47,836 4.33%
Consumer loans 552,537 35,930 6.50% 338,364 28,770 8.50%
Commercial real estate loans 2,392,290 107,231 4.41% 2,024,542 92,217 4.49%
Commercial loans 477,095 20,499 4.23% 390,174 16,878 4.27%
------- ------ ------- ------
Loans receivable (a) (b) (d) 7,391,456 331,322 4.48% 6,460,078 300,638 4.65%
Mortgage-backed securities (c) 467,560 8,540 1.83% 500,797 8,823 1.77%
Investment securities (c) (d) 344,575 7,612 2.21% 469,568 11,155 2.38%
FHLB stock (i) 26,386 1,371 5.20% 37,500 2,828 4.77%
Other interest-earning deposits 100,336 543 0.53% 179,201 431 0.24%
------- --- ------- ---
Total interest-earning assets 8,330,313 349,388 4.19% 7,647,144 323,875 4.22%
Noninterest earning assets (e) 781,274 677,449
------- -------
Total assets $9,111,587 $8,324,593
========== ==========
Liabilities and shareholders' equity:
-------------------------------------
Interest-bearing liabilities:
Savings deposits $1,500,655 3,218 0.21% $1,300,102 3,387 0.26%
Interest-bearing demand deposits 1,209,325 462 0.04% 976,789 568 0.06%
Money market deposit accounts 1,473,897 3,621 0.25% 1,202,143 3,222 0.27%
Time deposits 1,630,424 16,164 0.99% 1,540,905 16,878 1.10%
Borrowed funds (f) 592,581 10,274 1.73% 925,683 27,347 2.95%
Junior subordinated debentures 111,213 4,560 4.03% 108,507 4,925 4.48%
------- ----- ------- -----
Total interest-bearing liabilities 6,518,095 38,299 0.59% 6,054,129 56,327 0.93%
Noninterest-bearing demand deposits (g) 1,245,320 1,001,263
Noninterest bearing liabilities 188,381 166,530
------- -------
Total liabilities 7,951,796 7,221,922
Shareholders' equity 1,159,791 1,102,671
--------- ---------
Total liabilities and shareholders' equity $9,111,587 $8,324,593
========== ==========
Net interest income/ Interest rate spread 311,089 3.60% 267,548 3.29%
Net interest-earning assets/ Net interest margin $1,812,218 3.73% $1,593,015 3.49%
Ratio of interest-earning assets to interest-bearing
liabilities 1.28X 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 0.33%, and 0.40%,
respectively.
(h) Shown on a FTE basis. GAAP basis yields for the
periods indicated were: Loans - 4.45% and 4.62%,
respectively, Investment securities - 1.78% and
1.88%, respectively, Interest-earning assets - 4.15%
and 4.17%, respectively. GAAP basis net interest rate
spreads were 3.56% and 3.24%, respectively, and GAAP
basis net interest margins were 3.69% and 3.43%,
respectively.
(i) The average yield calculation excludes the $1.0
million special dividend paid in February 2015, the
average yield was 7.54% with the special dividend
included.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-record-fourth-quarter-2016-earnings-and-quarterly-dividend-increase-300394756.html
SOURCE Northwest Bancshares, Inc.
