Northwest Bancshares, Inc. Announces First Quarter 2024 Earnings and Quarterly Dividend
118th consecutive quarterly dividend of $0.20 per share declared.
COLUMBUS, Ohio, April 22, 2024 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2024 of $29 million, or $0.23 per diluted share. This represents a decrease of $5 million, or 13%, compared to the same quarter last year, when net income was $34 million, or $0.26 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended March 31, 2024 were 7.57% and 0.81% compared to 9.11% and 0.97% for the same quarter last year.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on May 15, 2024 to shareholders of record as of May 2, 2024. This is the 118th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of March 31, 2024, this represents an annualized dividend yield of approximately 6.9%.
The Company is announcing its intentions to pursue a limited, strategic repositioning of the securities portfolio to optimize its balance sheet by liquidating lower-yielding securities in an effort to generate additional future earnings. This initiative will be accomplished through the sale of up to 15% of the Company's investment securities portfolio. The securities losses recognized will be limited to $40 million, equivalent to approximately $30 million after tax. The Company expects a yield pickup of 375-400 basis points from the repositioning and will look to manage the payback period so that it will be approximately three years. The characteristics of investment securities to be sold have an average yield less than 2.00% with a remaining maturity of greater than four years. The proceeds will be used to reduce borrowings in the short term while also opportunistically reinvesting into securities with similar risk, maturity and duration characteristics.
Louis J. Torchio, President and CEO, added, "As part of the Company's ongoing efforts to enhance future profitability, we have proactively chosen to reposition our securities portfolio. By executing this strategic securities transaction, we will significantly improve the Company's future earnings potential while simultaneously maintaining our robust capital levels and liquidity. This strategic move aligns with our commitment to long-term financial stability and growth, ensuring that we are well-positioned to capitalize on future opportunities and navigate any potential challenges in the market."
"In addition, we are proud of our first quarter earnings, which demonstrate our focus and commitment to achieving solid results in a challenging environment. Our strong performance is a testament to our robust business model, dedicated team, and the trust of our customers," added Mr. Torchio. "Despite industry headwinds, we have emerged stronger by staying true to our core values, prioritizing growth and transformation, and maintaining a customer-centric approach. Our first quarter results provide a solid foundation for continued growth. We are grateful for the support of our employees, customers, partners, and shareholders. Together, we will continue driving success and shape the future of our organization."
Balance Sheet Highlights
Quarter ended
March 31, 2024
March 31, 2023
Dollar change
Percent change
Average loans receivable
$ 11,345,308
10,887,132
458,176
4.2 %
Average investments
2,051,058
2,294,393
(243,335)
(10.6) %
Average deposits
11,887,954
11,404,035
483,919
4.2 %
Average borrowed funds
469,697
740,218
(270,521)
(36.5) %
Average loans receivable increased 4% from the quarter ended March 31, 2023 driven by commercial loans, which grew by $553 million as we have continued to build-out our commercial lending verticals.
Average investments declined 11% from the quarter ended March 31, 2023. The decline in investments was driven by the sale of investment securities during the prior year.
Average deposits grew 4% from the quarter ended March 31, 2023 driven by a $1.404 billion increase in our average time deposits as we continued competitively positioning our deposit products. This increase was partially offset by a decrease in money market balances as customers shifted balances into higher yielding time deposit accounts.
Compared to the quarter ending March 31, 2023, average borrowings saw a significant 37% reduction, primarily attributable to the strategic pay down of wholesale borrowings. This decrease was made possible by a substantial increase in cash reserves, resulting from a notable rise in the average balance of deposits.
Income Statement Highlights
Quarter ended
March 31, 2024
March 31, 2023
Dollar change
Percent change
Interest income
$ 160,239
134,940
25,299
18.7 %
Interest expense
57,001
22,476
34,525
153.6 %
Net interest income
$ 103,238
112,464
(9,226)
(8.2) %
Net interest margin
3.10 %
3.46 %
N/A
Net interest income decreased 8%, and net interest margin decreased to 3.10% from the quarter ended March 31, 2023. This decrease in net interest income resulted primarily from:
A $25 million increase in interest income as cash and marketable securities were redeployed into higher yielding loans, which, along with higher market interest rates, caused the yield on loans to improve to 5.33% for the quarter ended March 31, 2024 from 4.63% for the quarter ended March 31, 2023.
A $35 million increase in interest expense as the result of higher costs of deposits and borrowings due to the higher interest rate environment and competitive pressure for liquidity. The cost of interest-bearing liabilities increased to 2.28% for the quarter ended March 31, 2024 from 0.96% for the quarter ended March 31, 2023.
Quarter ended
March 31, 2024
March 31, 2023
Dollar change
Percent change
Provision for credit losses - loans
$ 4,234
4,870
(636)
(13.1) %
Provision for credit losses - unfunded commitments
(799)
126
(925)
(734.1) %
Total provision for credit losses expense
$ 3,435
4,996
(1,561)
(31.2) %
The provision for credit losses decreased by 31% from the quarter ended March 31, 2023 primarily driven by a decline in our reserves for unfunded commitments in the current period based on the timing of origination and funding of commercial construction loans and lines of credit coupled with improvements in the economic forecasts. Additionally, the Company continued to experience low levels of classified loans with a slight increase to $229 million or 1.99% of total loans at March 31, 2024 from $209 million, or 1.88% of total loans, at March 31, 2023.
Quarter ended
March 31, 2024
March 31, 2023
Dollar change
Percent change
Noninterest income:
Gain on sale of SBA loans
$ 873
279
594
212.9 %
Service charges and fees
15,523
13,189
2,334
17.7 %
Trust and other financial services income
7,127
6,449
678
10.5 %
Gain on real estate owned, net
57
108
(51)
(47.2) %
Income from bank-owned life insurance
1,502
1,269
233
18.4 %
Mortgage banking income
452
524
(72)
(13.7) %
Other operating income
2,429
2,151
278
12.9 %
Total noninterest income
$ 27,963
23,969
3,994
16.7 %
Noninterest income increased 17% from the quarter ended March 31, 2023. This increase was primarily due to an increase in service charges and fees driven by deposit-related fees based on customer activity as well as commercial loans fees, gain on sale of SBA loans, and improvements in trust and other financial services income.
Quarter ended
March 31, 2024
March 31, 2023
Dollar change
Percent change
Noninterest expense:
Personnel expense
$ 51,540
46,604
4,936
10.6 %
Non personnel expense
38,484
40,846
(2,362)
(5.8) %
Total noninterest expense
$ 90,024
87,450
2,574
2.9 %
Noninterest expense increased 3% from the quarter ended March 31, 2023. This increase primarily resulted from a rise in personnel expense driven by the build-out of the commercial business and related credit, risk management and internal audit support functions over the past year. This was offset by a decrease in non-personnel expense related to a decline in merger, asset disposition and restructuring expense due to the severance and fixed asset charges related to the branch optimization and personnel reduction announced during the fourth quarter of 2022 as well as improvements in marketing expense and professional services expense.
The provision for income taxes decreased by $1.7 million, or 17%, to $8.6 million for the quarter ended March 31, 2024 from $10.3 million for the quarter ended March 31, 2023 due primarily to lower income before income taxes.
Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank. Founded in 1896 Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of March 31, 2024, Northwest operated 134 full-service branches and eight free standing drive-through facilities in Pennsylvania, New York, Ohio and Indiana. 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 inflation and an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; (7) increased risk associated with commercial real-estate and business loans; (8) changes in liquidity, including the size and composition of our deposit portfolio; (9) reduction in the value of our goodwill and other intangible assets; and (10) the effect of any pandemic, including COVID-19, war or act of terrorism. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(dollars in thousands, except per share amounts)
March 31, 2024
December 31, 2023
March 31, 2023
Assets
Cash and cash equivalents
$ 119,319
122,260
96,497
Marketable securities available-for-sale (amortized cost of $1,298,108, $1,240,003 and $1,402,805,
respectively)
1,094,009
1,043,359
1,205,510
Marketable securities held-to-maturity (fair value of $680,353, $699,506 and $750,345, respectively)
801,107
814,839
866,022
Total cash and cash equivalents and marketable securities
2,014,435
1,980,458
2,168,029
Loans held-for-sale
8,082
8,768
7,006
Residential mortgage loans
3,374,980
3,419,417
3,499,078
Home equity loans
1,196,607
1,227,858
1,281,546
Consumer loans
2,118,367
2,126,027
2,232,133
Commercial real estate loans
3,028,314
2,974,010
2,826,485
Commercial loans
1,774,896
1,658,729
1,246,023
Total loans receivable
11,501,246
11,414,809
11,092,271
Allowance for credit losses
(124,897)
(125,243)
(121,257)
Loans receivable, net
11,376,349
11,289,566
10,971,014
FHLB stock, at cost
30,811
30,146
41,519
Accrued interest receivable
50,680
47,353
36,177
Real estate owned, net
50
104
524
Premises and equipment, net
130,565
138,838
140,301
Bank-owned life insurance
252,842
251,895
256,310
Goodwill
380,997
380,997
380,997
Other intangible assets, net
4,589
5,290
7,651
Other assets
268,945
294,458
191,294
Total assets
$ 14,510,263
14,419,105
14,193,816
Liabilities and shareholders' equity
Liabilities
Noninterest-bearing demand deposits
$ 2,618,379
2,669,023
2,896,092
Interest-bearing demand deposits
2,557,866
2,634,546
2,541,503
Money market deposit accounts
1,952,537
1,968,218
2,328,050
Savings deposits
2,156,048
2,105,234
2,194,743
Time deposits
2,786,814
2,602,881
1,576,791
Total deposits
12,071,644
11,979,902
11,537,179
Borrowed funds
400,783
398,895
688,641
Subordinated debt
114,276
114,189
113,927
Junior subordinated debentures
129,639
129,574
129,379
Advances by borrowers for taxes and insurance
46,970
45,253
49,893
Accrued interest payable
17,395
13,669
2,236
Other liabilities
177,107
186,306
159,286
Total liabilities
12,957,814
12,867,788
12,680,541
Shareholders' equity
Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares issued
-
-
-
Common stock, $0.01 par value: 500,000,000 shares authorized, 127,253,189, 127,110,453 and
127,065,400 shares issued and outstanding, respectively
1,273
1,271
1,271
Additional paid-in capital
1,026,173
1,024,852
1,020,855
Retained earnings
678,427
674,686
649,672
Accumulated other comprehensive loss
(153,424)
(149,492)
(158,523)
Total shareholders' equity
1,552,449
1,551,317
1,513,275
Total liabilities and shareholders' equity
$ 14,510,263
14,419,105
14,193,816
Equity to assets
10.70 %
10.76 %
10.66 %
Tangible common equity to assets*
8.26 %
8.30 %
8.15 %
Book value per share
$ 12.20
12.20
11.91
Tangible book value per share*
$ 9.17
9.17
8.85
Closing market price per share
$ 11.65
12.48
12.03
Full time equivalent employees
2,060
2,098
2,066
Number of banking offices
142
142
150
*
Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)
Quarter ended
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Interest income:
Loans receivable
$ 149,571
146,523
140,667
132,724
123,745
Mortgage-backed securities
7,944
7,951
8,072
8,326
8,537
Taxable investment securities
794
786
786
841
845
Tax-free investment securities
491
492
491
667
700
FHLB stock dividends
607
666
668
844
690
Interest-earning deposits
832
970
914
594
423
Total interest income
160,239
157,388
151,598
143,996
134,940
Interest expense:
Deposits
47,686
40,600
31,688
21,817
11,238
Borrowed funds
9,315
10,486
11,542
13,630
11,238
Total interest expense
57,001
51,086
43,230
35,447
22,476
Net interest income
103,238
106,302
108,368
108,549
112,464
Provision for credit losses - loans
4,234
3,801
3,983
6,010
4,870
Provision for credit losses - unfunded commitments
(799)
4,145
(2,981)
2,920
126
Net interest income after provision for credit losses
99,803
98,356
107,366
99,619
107,468
Noninterest income:
Loss on sale of investments
-
(1)
-
(8,306)
-
Gain on sale of mortgage servicing rights
-
-
-
8,305
-
Gain on sale of SBA loans
873
388
301
832
279
Gain on sale of loans
-
726
-
-
-
Service charges and fees
15,523
15,922
15,270
14,833
13,189
Trust and other financial services income
7,127
6,884
7,085
6,866
6,449
Gain on real estate owned, net
57
1,084
29
785
108
Income from bank-owned life insurance
1,502
1,454
4,561
1,304
1,269
Mortgage banking income
452
247
632
1,028
524
Other operating income
2,429
2,465
3,010
4,150
2,151
Total noninterest income
27,963
29,169
30,888
29,797
23,969
Noninterest expense:
Compensation and employee benefits
51,540
50,194
51,243
47,650
46,604
Premises and occupancy costs
7,627
7,049
7,052
7,579
7,471
Office operations
2,767
3,747
3,398
2,800
3,010
Collections expense
336
328
551
429
387
Processing expenses
14,725
15,017
14,672
14,648
14,350
Marketing expenses
2,149
1,317
2,379
2,856
2,892
Federal deposit insurance premiums
3,023
2,643
2,341
2,064
2,223
Professional services
4,065
6,255
3,002
3,804
4,758
Amortization of intangible assets
701
724
795
842
909
Real estate owned expense
66
51
141
83
181
Merger, asset disposition and restructuring expense
955
2,354
-
1,593
2,802
Other expenses
2,070
997
1,996
1,510
1,863
Total noninterest expense
90,024
90,676
87,570
85,858
87,450
Income before income taxes
37,742
36,849
50,684
43,558
43,987
Income tax expense
8,579
7,835
11,464
10,514
10,308
Net income
$ 29,163
29,014
39,220
33,044
33,679
Basic earnings per share
$ 0.23
0.23
0.31
0.26
0.27
Diluted earnings per share
$ 0.23
0.23
0.31
0.26
0.26
Annualized return on average equity
7.57 %
7.64 %
10.27 %
8.72 %
9.11 %
Annualized return on average assets
0.81 %
0.80 %
1.08 %
0.93 %
0.97 %
Annualized return on average tangible common equity *
10.08 %
10.28 %
13.80 %
11.71 %
12.31 %
Efficiency ratio
68.62 %
66.93 %
62.88 %
62.06 %
64.10 %
Efficiency ratio, excluding certain items **
67.35 %
64.66 %
62.31 %
60.30 %
61.38 %
Annualized noninterest expense to average assets
2.51 %
2.51 %
2.42 %
2.42 %
2.51 %
Annualized noninterest expense to average assets, excluding certain items**
2.47 %
2.43 %
2.39 %
2.35 %
2.40 %
*
Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
**
Excludes amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP).See reconciliation of non-GAAP financial measures for additional information relating to these items.
Northwest Bancshares, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited) *
(dollars in thousands, except per share amounts)
Quarter ended March 31,
2024
2023
Reconciliation of net income to adjusted net operating income:
Net income (GAAP)
$ 29,163
33,679
Non-GAAP adjustments
Add: merger, asset disposition and restructuring expense
955
2,802
Less: tax benefit of merger, asset disposition and restructuring expense
(267)
(785)
Adjusted net operating income (non-GAAP)
$ 29,851
35,696
Diluted earnings per share (GAAP)
$ 0.23
0.26
Diluted adjusted operating earnings per share (non-GAAP)
$ 0.23
0.28
Average equity
$ 1,549,870
1,498,825
Average assets
14,408,612
14,121,496
Annualized return on average equity (GAAP)
7.57 %
9.11 %
Annualized return on average assets (GAAP)
0.81 %
0.97 %
Annualized return on average equity, excluding merger, asset disposition and restructuring expense, net of tax (non-GAAP)
7.75 %
9.66 %
Annualized return on average assets, excluding merger, asset disposition and restructuring expense, net of tax (non-GAAP)
0.83 %
1.03 %
The following non-GAAP financial measures used by the Company provide information useful to investors in understanding our operating performance and trends, and facilitate comparisons with the performance of our peers. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's Consolidated Statements of Financial Condition.
March 31, 2024
December 31, 2023
March 31, 2023
Tangible common equity to assets
Total shareholders' equity
$ 1,552,449
1,551,317
1,513,275
Less: goodwill and intangible assets
(385,586)
(386,287)
(388,648)
Tangible common equity
$ 1,166,863
1,165,030
1,124,627
Total assets
$ 14,510,263
14,419,105
14,193,816
Less: goodwill and intangible assets
(385,586)
(386,287)
(388,648)
Tangible assets
$ 14,124,677
14,032,818
13,805,168
Tangible common equity to tangible assets
8.26 %
8.30 %
8.15 %
Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments
Tangible common equity
$ 1,166,863
1,165,030
1,124,627
Less: unrealized losses on held to maturity investments
(120,754)
(115,334)
(115,677)
Add: deferred taxes on unrealized losses on held to maturity investments
33,811
32,294
32,390
Tangible common equity, including unrealized losses on held-to-maturity investments
$ 1,079,920
1,081,990
1,041,340
Tangible assets
$ 14,124,677
14,032,818
13,805,168
Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments
7.65 %
7.71 %
7.54 %
Tangible book value per share
Tangible common equity
$ 1,166,863
1,165,030
1,124,627
Common shares outstanding
127,253,189
127,110,453
127,065,400
Tangible book value per share
9.17
9.17
8.85
Northwest Bancshares, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited) *
(dollars in thousands, except per share amounts)
The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's Consolidated Statements of Income.
Quarter ended
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Annualized return on average tangible common equity
Net income
$ 29,163
29,014
39,220
33,044
33,679
Average shareholders' equity
1,549,870
1,506,895
1,515,287
1,519,990
1,498,825
Less: average goodwill and intangible assets
(386,038)
(386,761)
(387,523)
(388,354)
(389,236)
Average tangible common equity
$ 1,163,832
1,120,134
1,127,764
1,131,636
1,109,589
Annualized return on average tangible common equity
10.08 %
10.28 %
13.80 %
11.71 %
12.31 %
Efficiency ratio, excluding amortization and merger, asset disposition and restructuring expenses
Non-interest expense
$ 90,024
90,676
87,570
85,858
87,450
Less: amortization expense
(701)
(724)
(795)
(842)
(909)
Less: merger, asset disposition and restructuring expenses
(955)
(2,354)
-
(1,593)
(2,802)
Non-interest expense, excluding amortization and merger, assets disposition and restructuring expenses
$ 88,368
87,598
86,775
83,423
83,739
Net interest income
$ 103,238
106,302
108,368
108,549
112,464
Non-interest income
27,963
29,169
30,888
29,797
23,969
Net interest income plus non-interest income
$ 131,201
135,471
139,256
138,346
136,433
Efficiency ratio, excluding amortization and merger, asset disposition and restructuring expenses
67.35 %
64.66 %
62.31 %
60.30 %
61.38 %
Annualized non-interest expense to average assets, excluding amortization and merger, asset
disposition and restructuring expense
Non-interest expense excluding amortization and merger, asset disposition and restructuring expenses
$ 88,368
87,598
86,775
83,423
83,739
Average assets
14,408,612
14,329,020
14,379,323
14,245,917
14,121,496
Annualized non-interest expense to average assets, excluding amortization and merger, asset disposition
and restructuring expense
2.47 %
2.43 %
2.39 %
2.35 %
2.40 %
*
The table summarizes the Company's results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude merger, asset disposition and restructuring expense. The net tax effect was calculated using statutory tax rates of approximately 28.0%. The Company believes this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.
Northwest Bancshares, Inc. and Subsidiaries
Deposits (Unaudited)
(dollars in thousands)
Generally, deposits in excess of $250,000 are not federally insured. The following table provides details regarding the Company's uninsured deposits portfolio:
As of March 31, 2024
Balance
Percent of total deposits
Number of relationships
Uninsured deposits per the Call Report (1)
$ 2,806,650
23.25 %
4,965
Less intercompany deposit accounts
1,019,792
8.45 %
12
Less collateralized deposit accounts
408,083
3.38 %
255
Uninsured deposits excluding intercompany and collateralized accounts
$ 1,378,775
11.42 %
4,698
(1)
Uninsured deposits presented may be different from actual amounts due to titling of accounts.
Our largest uninsured depositor, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $19.2 million, or 0.16% of total deposits, as of March 31, 2024. Our top ten largest uninsured depositors, excluding intercompany and collateralized deposit accounts, had an aggregate uninsured deposit balance of $103.0 million, or 0.85% of total deposits, as of March 31, 2024. The average uninsured deposit account balance, excluding intercompany and collateralized accounts, was $293,000 as of March 31, 2024.
The following table provides additional details for the Company's deposit portfolio:
As of March 31, 2024
Balance
Percent of total deposits
Number of accounts
Personal noninterest bearing demand deposits
$ 1,369,294
11.34 %
287,824
Business noninterest bearing demand deposits
1,249,085
10.35
43,868
Personal interest-bearing demand deposits
1,427,140
11.82
57,909
Business interest-bearing demand deposits
1,130,726
9.37
7,921
Personal money market deposits
1,393,532
11.54
25,156
Business money market deposits
559,005
4.63
2,805
Savings deposits
2,156,048
17.86
194,542
Time deposits
2,786,814
23.09
79,611
Total deposits
$ 12,071,644
100.00 %
699,636
Our average deposit account balance as of March 31, 2024 was $17,000. The Company's insured cash sweep deposit balance was $393.2 million as of March 31, 2024.
The following table provides additional details regarding the Company's deposit portfolio over time:
9/30/2022
12/31/2022
3/31/2023
6/30/2023
9/30/2023
12/31/2023
3/31/2024
Personal noninterest bearing demand deposits
$ 1,413,781
1,412,227
1,428,232
1,397,167
1,375,144
1,357,875
1,369,294
Business noninterest bearing demand deposits
1,680,339
1,581,016
1,467,860
1,423,396
1,399,147
1,311,148
1,249,085
Personal interest-bearing demand deposits
1,742,173
1,718,806
1,627,546
1,535,254
1,477,617
1,464,058
1,427,140
Business interest-bearing demand deposits
498,937
499,059
466,105
624,252
689,914
812,433
805,069
Municipal demand deposits
571,620
468,566
447,852
418,147
430,549
358,055
325,657
Personal money market deposits
1,949,379
1,832,583
1,626,614
1,511,652
1,463,689
1,435,939
1,393,532
Business money market deposits
627,634
624,986
701,436
642,601
579,124
532,279
559,005
Savings deposits
2,327,419
2,275,020
2,194,743
2,120,215
2,116,360
2,105,234
2,156,048
Time deposits
1,067,110
1,052,285
1,576,791
1,989,711
2,258,338
2,602,881
2,786,814
Total deposits
$ 11,878,392
11,464,548
11,537,179
11,662,395
11,789,882
11,979,902
12,071,644
Northwest Bancshares, Inc. and Subsidiaries
Regulatory Capital Requirements (Unaudited)
(dollars in thousands)
At March 31, 2024
Actual
Minimum capital
requirements (1)
Well capitalized
requirements
Amount
Ratio
Amount
Ratio
Amount
Ratio
Total capital (to risk weighted assets)
Northwest Bancshares, Inc.
$ 1,805,374
15.951 %
$ 1,188,406
10.500 %
$ 1,131,815
10.000 %
Northwest Bank
1,529,840
13.529 %
1,187,335
10.500 %
1,130,795
10.000 %
Tier 1 capital (to risk weighted assets)
Northwest Bancshares, Inc.
1,555,043
13.739 %
962,043
8.500 %
905,452
8.000 %
Northwest Bank
1,393,786
12.326 %
961,176
8.500 %
904,636
8.000 %
Common equity tier 1 capital (to risk weighted assets)
Northwest Bancshares, Inc.
1,429,393
12.629 %
792,270
7.000 %
735,680
6.500 %
Northwest Bank
1,393,786
12.326 %
791,557
7.000 %
735,017
6.500 %
Tier 1 capital (leverage) (to average assets)
Northwest Bancshares, Inc.
1,555,043
10.828 %
574,453
4.000 %
718,066
5.000 %
Northwest Bank
1,393,786
9.712 %
574,060
4.000 %
717,575
5.000 %
(1)
Amounts and ratios include the capital conservation buffer of 2.5%, which does not apply to Tier 1 capital to average assets (leverage ratio). For further information related to the capital conservation buffer, see "Item 1. Business - Supervision and Regulation" of our 2023 Annual Report on Form 10-K.
Northwest Bancshares, Inc. and Subsidiaries
Marketable Securities (Unaudited)
(dollars in thousands)
March 31, 2024
Marketable securities available-for-sale
Amortized cost
Gross unrealized
holding gains
Gross unrealized
holding losses
Fair value
Weighted average duration
Debt issued by the U.S. government and agencies:
Due after one year through five years
$ 20,000
-
(1,204)
18,796
2.65
Due after ten years
48,182
-
(10,260)
37,922
6.13
Debt issued by government sponsored enterprises:
Due after one year through five years
45,987
-
(5,819)
40,168
4.11
Due after five years through ten years
360
-
(9)
351
1.73
Municipal securities:
Due after one year through five years
4,279
14
(426)
3,867
3.79
Due after five years through ten years
27,921
47
(1,886)
26,082
6.68
Due after ten years
53,464
-
(9,142)
44,322
10.81
Corporate debt issues:
Due after five years through ten years
8,467
-
(833)
7,634
5.14
Residential mortgage-backed agency securities:
Fixed rate pass-through
232,854
93
(26,711)
206,236
6.55
Variable rate pass-through
6,738
12
(69)
6,681
3.82
Fixed rate agency CMOs
776,087
-
(147,127)
628,960
5.30
Variable rate agency CMOs
73,769
35
(814)
72,990
5.01
Total residential mortgage-backed agency securities
1,089,448
140
(174,721)
914,867
5.55
Total marketable securities available-for-sale
$ 1,298,108
201
(204,300)
1,094,009
5.69
Marketable securities held-to-maturity
Government sponsored
Due after one year through five years
$ 89,472
-
(11,232)
78,240
3.89
Due after five years through ten years
34,987
-
(5,877)
29,110
5.31
Residential mortgage-backed agency securities:
Fixed rate pass-through
144,158
-
(21,062)
123,096
5.06
Variable rate pass-through
432
1
-
433
4.39
Fixed rate agency CMOs
531,529
-
(82,578)
448,951
6.81
Variable rate agency CMOs
529
-
(6)
523
4.96
Total residential mortgage-backed agency securities
676,648
1
(103,646)
573,003
6.44
Total marketable securities held-to-maturity
$ 801,107
1
(120,755)
680,353
6.10
Northwest Bancshares, Inc. and Subsidiaries
Borrowed Funds (Unaudited)
(dollars in thousands)
March 31, 2024
Amount
Average rate
Term notes payable to the FHLB of Pittsburgh, due within one year
$ 275,000
5.65 %
Notes payable to the FHLB of Pittsburgh, due within one year
55,600
5.67 %
Total term notes payable to the FHLB
330,600
5.66 %
Collateralized borrowings, due within one year
29,882
1.62 %
Collateral received, due within one year
40,301
5.08 %
Subordinated debentures, net of issuance costs
114,276
4.28 %
Junior subordinated debentures
129,639
7.61 %
Total borrowed funds *
$ 644,698
5.58 %
*
As of March 31, 2024, the Company had $3.3 billion of additional borrowing capacity available with the FHLB of Pittsburgh, including a $250.0 million overnight line of credit, which had a $55.6 million drawn balance, as well as $264.1 million of borrowing capacity available with the Federal Reserve Bank and $105.0 million with two correspondent banks.
Northwest Bancshares, Inc. and Subsidiaries
Analysis of Loan Portfolio by Loan Sector (Unaudited)
Commercial real estate loans outstanding
The following table provides the various loan sectors in our commercial real estate portfolio at March 31, 2024:
March 31, 2024
Property type
Percent of portfolio
5 or more unit dwelling
15.2 %
Nursing home
12.8
Retail building
11.8
Commercial office building - non-owner occupied
9.1
Manufacturing & industrial building
5.0
Residential acquisition & development - 1-4 family, townhouses and apartments
4.3
Multi-use building - commercial, retail and residential
4.1
Warehouse/storage building
3.9
Multi-use building - office and warehouse
3.3
Commercial office building - owner occupied
3.3
Other medical facility
3.1
Single family dwelling
2.7
Student housing
2.2
Hotel/motel
2.1
Agricultural real estate
2.0
2-4 family
2.0
All other
13.1
Total
100.0 %
The following table describes the collateral of our commercial real estate portfolio by state at March 31, 2024:
March 31, 2024
State
Percent of portfolio
New York
33.0 %
Pennsylvania
30.2
Ohio
20.3
Indiana
8.1
All other
8.4
Total
100.0 %
Northwest Bancshares, Inc. and Subsidiaries
Asset Quality (Unaudited)
(dollars in thousands)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Nonaccrual loans current:
Residential mortgage loans
$ 1,351
959
1,951
1,559
1,423
Home equity loans
974
871
947
1,089
1,084
Consumer loans
1,295
1,051
1,049
1,009
911
Commercial real estate loans
66,895
64,603
44,639
48,468
50,045
Commercial loans
934
1,182
1,369
995
1,468
Total nonaccrual loans current
$ 71,449
68,666
49,955
53,120
54,931
Nonaccrual loans delinquent 30 days to 59 days:
Residential mortgage loans
$ 1,454
933
48
49
688
Home equity loans
125
174
92
37
18
Consumer loans
294
225
274
309
223
Commercial real estate loans
574
51
1,913
1,697
1,900
Commercial loans
161
139
90
855
341
Total nonaccrual loans delinquent 30 days to 59 days
$ 2,608
1,522
2,417
2,947
3,170
Nonaccrual loans delinquent 60 days to 89 days:
Residential mortgage loans
$ -
511
66
185
919
Home equity loans
488
347
319
363
338
Consumer loans
381
557
312
360
340
Commercial real estate loans
52
831
212
210
1,355
Commercial loans
201
56
291
245
126
Total nonaccrual loans delinquent 60 days to 89 days
$ 1,122
2,302
1,200
1,363
3,078
Nonaccrual loans delinquent 90 days or more:
Residential mortgage loans
$ 4,304
6,324
7,695
6,290
3,300
Home equity loans
2,822
3,100
2,073
1,965
2,190
Consumer loans
2,659
3,212
2,463
2,033
2,791
Commercial real estate loans
6,931
6,488
8,416
8,575
8,010
Commercial loans
3,165
2,770
2,435
2,296
1,139
Total nonaccrual loans delinquent 90 days or more
$ 19,881
21,894
23,082
21,159
17,430
Total nonaccrual loans
$ 95,060
94,384
76,654
78,589
78,609
Total nonaccrual loans
$ 95,060
94,384
76,654
78,589
78,609
Loans 90 days past due and still accruing
2,452
2,698
728
532
652
Nonperforming loans
97,512
97,082
77,382
79,121
79,261
Real estate owned, net
50
104
363
371
524
Nonperforming assets
$ 97,562
97,186
77,745
79,492
79,785
Nonperforming loans to total loans
0.85 %
0.85 %
0.68 %
0.70 %
0.71 %
Nonperforming assets to total assets
0.67 %
0.67 %
0.54 %
0.56 %
0.56 %
Allowance for credit losses to total loans
1.09 %
1.10 %
1.10 %
1.10 %
1.09 %
Allowance for credit losses to nonperforming loans
128.08 %
129.01 %
161.33 %
157.26 %
152.98 %
Northwest Bancshares, Inc. and Subsidiaries
Loans by Credit Quality Indicators (Unaudited)
(dollars in thousands)
At March 31, 2024
Pass
Special
mention *
Substandard **
Doubtful
Loss
Loans
receivable
Personal Banking:
Residential mortgage loans
$ 3,370,307
-
12,541
-
-
3,382,848
Home equity loans
1,191,957
-
4,650
-
-
1,196,607
Consumer loans
2,113,050
-
5,317
-
-
2,118,367
Total Personal Banking
6,675,314
-
22,508
-
-
6,697,822
Commercial Banking:
Commercial real estate loans
2,714,857
131,247
182,424
-
-
3,028,528
Commercial loans
1,698,519
52,461
23,916
-
-
1,774,896
Total Commercial Banking
4,413,376
183,708
206,340
-
-
4,803,424
Total loans
$ 11,088,690
183,708
228,848
-
-
11,501,246
At December 31, 2023
Personal Banking:
Residential mortgage loans
$ 3,413,846
-
14,339
-
-
3,428,185
Home equity loans
1,223,097
-
4,761
-
-
1,227,858
Consumer loans
2,120,216
-
5,811
-
-
2,126,027
Total Personal Banking
6,757,159
-
24,911
-
-
6,782,070
Commercial Banking:
Commercial real estate loans
2,670,510
124,116
179,384
-
-
2,974,010
Commercial loans
1,637,879
6,678
14,172
-
-
1,658,729
Total Commercial Banking
4,308,389
130,794
193,556
-
-
4,632,739
Total loans
$ 11,065,548
130,794
218,467
-
-
11,414,809
At September 30, 2023
Personal Banking:
Residential mortgage loans
$ 3,459,251
-
13,512
-
-
3,472,763
Home equity loans
1,254,985
-
3,780
-
-
1,258,765
Consumer loans
2,150,464
-
4,655
-
-
2,155,119
Total Personal Banking
6,864,700
-
21,947
-
-
6,886,647
Commercial Banking:
Commercial real estate loans
2,632,472
123,935
166,610
-
-
2,923,017
Commercial loans
1,476,833
3,690
20,086
-
-
1,500,609
Total Commercial Banking
4,109,305
127,625
186,696
-
-
4,423,626
Total loans
$ 10,974,005
127,625
208,643
-
-
11,310,273
At June 30, 2023
Personal Banking:
Residential mortgage loans
$ 3,483,098
-
12,059
-
-
3,495,157
Home equity loans
1,272,363
-
3,699
-
-
1,276,062
Consumer loans
2,196,938
-
4,124
-
-
2,201,062
Total Personal Banking
6,952,399
-
19,882
-
-
6,972,281
Commercial Banking:
Commercial real estate loans
2,649,535
74,170
171,519
-
-
2,895,224
Commercial loans
1,377,981
3,040
22,705
-
-
1,403,726
Total Commercial Banking
4,027,516
77,210
194,224
-
-
4,298,950
Total loans
$ 10,979,915
77,210
214,106
-
-
11,271,231
At March 31, 2023
Personal Banking:
Residential mortgage loans
$ 3,499,135
-
6,330
-
-
3,505,465
Home equity loans
1,277,915
-
3,631
-
-
1,281,546
Consumer loans
2,227,379
-
4,754
-
-
2,232,133
Total Personal Banking
7,004,429
-
14,715
-
-
7,019,144
Commercial Banking:
Commercial real estate loans
2,585,676
69,837
171,591
-
-
2,827,104
Commercial loans
1,217,344
6,381
22,298
-
-
1,246,023
Total Commercial Banking
3,803,020
76,218
193,889
-
-
4,073,127
Total loans
$ 10,807,449
76,218
208,604
-
-
11,092,271
*
Includes $2.4 million, $7.8 million, $6.9 million, $4.9 million, and $7.4 million of acquired loans at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively.
**
Includes $27.2 million, $20.3 million, $28.9 million, $31.2 million, and $31.9 million of acquired loans at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively.
Northwest Bancshares, Inc. and Subsidiaries
Loan Delinquency (Unaudited)
(dollars in thousands)
March 31, 2024
*
December 31, 2023
*
September 30, 2023
*
June 30, 2023
*
March 31, 2023
*
(Number of loans and dollar amount of loans)
Loans delinquent 30 days to 59 days:
Residential mortgage loans
351
$ 38,502
1.1 %
307
$ 30,041
0.9 %
6
$ 573
- %
14
$ 627
- %
259
$ 26,992
0.8 %
Home equity loans
113
4,608
0.4 %
121
5,761
0.5 %
112
4,707
0.4 %
92
3,395
0.3 %
111
4,235
0.3 %
Consumer loans
737
9,911
0.5 %
896
11,211
0.5 %
733
9,874
0.5 %
602
7,955
0.4 %
587
6,930
0.3 %
Commercial real estate loans
25
6,396
0.2 %
23
3,204
0.1 %
22
3,411
0.1 %
13
2,710
0.1 %
23
4,834
0.2 %
Commercial loans
62
3,091
0.2 %
59
4,196
0.3 %
52
2,847
0.2 %
38
15,658
1.1 %
46
4,253
0.3 %
Total loans delinquent 30 days to 59 days
1,288
$ 62,508
0.5 %
1,406
$ 54,413
0.5 %
925
$ 21,412
0.2 %
759
$ 30,345
0.3 %
1,026
$ 47,244
0.4 %
Loans delinquent 60 days to 89 days:
Residential mortgage loans
3
$ 70
- %
69
$ 7,796
0.2 %
56
$ 5,395
0.2 %
52
$ 3,521
0.1 %
23
$ 1,922
0.1 %
Home equity loans
26
761
0.1 %
37
982
0.1 %
40
1,341
0.1 %
31
1,614
0.1 %
31
1,061
0.1 %
Consumer loans
231
2,545
0.1 %
322
3,754
0.2 %
236
2,707
0.1 %
250
2,584
0.1 %
185
2,083
0.1 %
Commercial real estate loans
5
807
- %
9
1,031
- %
13
1,588
0.1 %
12
1,288
- %
17
1,949
0.1 %
Commercial loans
27
1,284
0.1 %
16
703
- %
15
981
0.1 %
23
11,092
0.8 %
19
1,088
0.1 %
Total loans delinquent 60 days to 89 days
292
$ 5,467
- %
453
$ 14,266
0.1 %
360
$ 12,012
0.1 %
368
$ 20,099
0.2 %
275
$ 8,103
0.1 %
Loans delinquent 90 days or more: **
Residential mortgage loans
50
$ 5,813
0.2 %
70
$ 7,995
0.2 %
79
$ 7,695
0.2 %
63
$ 6,290
0.2 %
39
$ 3,300
0.1 %
Home equity loans
71
2,823
0.2 %
81
3,126
0.3 %
73
2,206
0.2 %
68
1,965
0.2 %
65
2,190
0.2 %
Consumer loans
398
3,345
0.2 %
440
3,978
0.2 %
357
3,020
0.1 %
314
2,447
0.1 %
313
3,279
0.1 %
Commercial real estate loans
22
6,931
0.2 %
27
6,712
0.2 %
27
8,416
0.3 %
20
8,575
0.3 %
18
8,010
0.3 %
Commercial loans
62
3,421
0.2 %
53
2,780
0.2 %
39
2,472
0.2 %
38
2,414
0.2 %
24
1,302
0.1 %
Total loans delinquent 90 days or more
603
$ 22,333
0.2 %
671
$ 24,591
0.2 %
575
$ 23,809
0.2 %
503
$ 21,691
0.2 %
459
$ 18,081
0.2 %
Total loans delinquent
2,183
$ 90,308
0.8 %
2,530
$ 93,270
0.8 %
1,860
$ 57,233
0.5 %
1,630
$ 72,135
0.6 %
1,760
$ 73,428
0.7 %
*
Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
**
Includes purchased credit deteriorated loans of $446,000, $646,000, $1.4 million, $605,000, and $331,000 at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively.
Northwest Bancshares, Inc. and Subsidiaries
Allowance for Credit Losses (Unaudited)
(dollars in thousands)
Quarter ended
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Beginning balance
$ 125,243
124,841
124,423
121,257
118,036
ASU 2022-02 Adoption
-
-
-
-
426
Provision
4,234
3,801
3,983
6,010
4,870
Charge-offs residential mortgage
(162)
(266)
(171)
(545)
(207)
Charge-offs home equity
(412)
(133)
(320)
(235)
(164)
Charge-offs consumer
(4,573)
(3,860)
(3,085)
(2,772)
(2,734)
Charge-offs commercial real estate
(349)
(742)
(484)
(483)
(657)
Charge-offs commercial
(1,163)
(806)
(1,286)
(1,209)
(865)
Recoveries
2,079
2,408
1,781
2,400
2,552
Ending balance
$ 124,897
125,243
124,841
124,423
121,257
Net charge-offs to average loans, annualized
0.16 %
0.12 %
0.13 %
0.10 %
0.08 %
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
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
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
$ 3,392,524
32,674
3.85 %
$ 3,442,308
32,739
3.80 %
$ 3,476,446
32,596
3.75 %
$ 3,485,517
32,485
3.73 %
$ 3,493,617
32,009
3.66 %
Home equity loans
1,205,273
17,294
5.77 %
1,238,420
17,590
5.64 %
1,264,134
17,435
5.47 %
1,273,298
16,898
5.32 %
1,284,425
16,134
5.09 %
Consumer loans
2,033,620
25,033
4.95 %
2,055,783
24,667
4.76 %
2,092,023
23,521
4.46 %
2,143,804
22,662
4.24 %
2,123,672
20,794
3.97 %
Commercial real estate loans
2,999,224
43,425
5.73 %
2,950,589
43,337
5.75 %
2,911,145
41,611
5.59 %
2,836,443
38,426
5.36 %
2,824,120
37,031
5.24 %
Commercial loans
1,714,667
31,857
7.35 %
1,564,617
28,801
7.20 %
1,447,211
26,239
7.09 %
1,326,598
22,872
6.82 %
1,161,298
18,353
6.32 %
Total loans receivable (a) (b) (d)
11,345,308
150,283
5.33 %
11,251,717
147,134
5.19 %
11,190,959
141,402
5.01 %
11,065,660
133,343
4.83 %
10,887,132
124,321
4.63 %
Mortgage-backed securities (c)
1,717,306
7,944
1.85 %
1,741,687
7,951
1.83 %
1,781,010
8,072
1.81 %
1,859,427
8,326
1.79 %
1,909,676
8,537
1.79 %
Investment securities (c) (d)
333,752
1,430
1.71 %
335,121
1,425
1.70 %
336,125
1,431
1.70 %
374,560
1,715
1.83 %
384,717
1,761
1.83 %
FHLB stock, at cost
32,249
607
7.57 %
35,082
665
7.52 %
37,722
668
7.03 %
45,505
844
7.44 %
39,631
690
7.06 %
Other interest-earning deposits
61,666
832
5.34 %
71,987
970
5.27 %
67,143
915
5.33 %
46,536
594
5.05 %
38,324
423
4.41 %
Total interest-earning assets
13,490,281
161,096
4.80 %
13,435,594
158,145
4.67 %
13,412,959
152,488
4.51 %
13,391,688
144,822
4.34 %
13,259,480
135,732
4.15 %
Noninterest-earning assets (e)
918,331
893,426
966,364
854,229
862,016
Total assets
$ 14,408,612
$ 14,329,020
$ 14,379,323
$ 14,245,917
$ 14,121,496
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings deposits (g)
$ 2,122,035
5,036
0.95 %
$ 2,102,320
4,045
0.76 %
$ 2,116,759
2,695
0.51 %
$ 2,142,941
1,393
0.26 %
$ 2,198,988
690
0.13 %
Interest-bearing demand deposits (g)
2,538,823
5,402
0.86 %
2,573,634
4,921
0.76 %
2,569,229
4,086
0.63 %
2,469,666
1,648
0.27 %
2,612,883
951
0.15 %
Money market deposit accounts (g)
1,961,332
7,913
1.62 %
1,997,116
7,446
1.48 %
2,112,228
6,772
1.27 %
2,221,713
6,113
1.10 %
2,408,582
4,403
0.74 %
Time deposits (g)
2,697,983
29,335
4.37 %
2,447,335
24,187
3.92 %
2,164,559
18,136
3.32 %
1,765,454
12,663
2.88 %
1,293,609
5,194
1.63 %
Borrowed funds (f)
469,697
5,708
4.89 %
548,089
6,826
4.94 %
643,518
7,937
4.89 %
837,358
10,202
4.89 %
740,218
7,938
4.35 %
Subordinated debt
114,225
1,148
4.02 %
114,134
1,148
4.02 %
114,045
1,148
4.03 %
113,958
1,148
4.03 %
113,870
1,148
4.03 %
Junior subordinated debentures
129,597
2,459
7.51 %
129,532
2,512
7.59 %
129,466
2,456
7.42 %
129,401
2,280
6.97 %
129,335
2,152
6.66 %
Total interest-bearing liabilities
10,033,692
57,001
2.28 %
9,912,160
51,085
2.04 %
9,849,804
43,230
1.74 %
9,680,491
35,447
1.47 %
9,497,485
22,476
0.96 %
Noninterest-bearing demand deposits (g)
2,567,781
2,675,788
2,757,091
2,820,928
2,889,973
Noninterest-bearing liabilities
257,269
234,177
257,141
224,508
235,213
Total liabilities
12,858,742
12,822,125
12,864,036
12,725,927
12,622,671
Shareholders' equity
1,549,870
1,506,895
1,515,287
1,519,990
1,498,825
Total liabilities and shareholders' equity
$ 14,408,612
$ 14,329,020
$ 14,379,323
$ 14,245,917
$ 14,121,496
Net interest income/Interest rate spread
104,095
2.52 %
107,060
2.63 %
109,258
2.77 %
109,375
2.87 %
113,256
3.19 %
Net interest-earning assets/Net interest margin
$ 3,456,589
3.10 %
$ 3,523,434
3.16 %
$ 3,563,155
3.23 %
$ 3,711,197
3.28 %
$ 3,761,995
3.46 %
Ratio of interest-earning assets to interest-bearing liabilities
1.34X
1.36X
1.36X
1.38X
1.40X
(a)
Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
(b)
Interest income includes accretion/amortization of deferred loan fees/expenses, which was not material.
(c)
Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
(d)
Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent ("FTE") basis.
(e)
Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
(f)
Average balances include FHLB borrowings and collateralized borrowings.
(g)
Average cost of deposits were 1.61%, 1.37%, 1.07%, 0.77%, and 0.40%, respectively, and average cost of Interest-bearing deposits were 2.06%, 1.77%, 1.40%, 1.02%, and 0.54%, respectively.
(h)
Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 5.30%, 5.17%, 4.99%, 4.81%, and 4.61%, respectively, Investment securities - 1.54%, 1.52%, 1.52%, 1.61%, and 1.61%, respectively, Interest-earning assets - 4.78%, 4.65%, 4.48%, 4.31%, and 4.13%, respectively. GAAP basis net interest rate spreads were 2.49%, 2.60%, 2.74%, 2.84%, and 3.17%, respectively, and GAAP basis net interest margins were 3.08%, 3.14%, 3.21%, 3.25%, and 3.44%, respectively.