EX-99.1 2 a2017-09x30nwbi8ker.htm EXHIBIT 99.1 Exhibit


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 Third Quarter 2017 Earnings and Quarterly Dividend
 
Warren, Pennsylvania — October 23, 2017
 
Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2017 of $23.6 million, or $0.23 per diluted share. This represents an increase of $9.4 million, or 66.2%, compared to the same quarter last year when net income was $14.2 million or $0.14 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended September 30, 2017 were 7.81% and 0.99% compared to 4.89% and 0.63% for the same quarter last year. 

Net income in the prior year period was negatively impacted by an additional $4.3 million, after tax, of restructuring costs associated with the acquisition of 18 offices in western New York, as well as $3.1 million, after tax, of expenses related to the termination of the Northwest Bank Employee Stock Ownership Plan ("ESOP"). Adjusting both quarters for non-core items, net income for the quarter ended September 30, 2017 was $24.4 million, or $0.24 per diluted share, an increase of $2.8 million, or 13.2%, compared to net income of $21.6 million, or $0.21 per diluted share in the previous year. For more information, see "Reconciliation of Non-GAAP to GAAP Net Income" within this press release.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.16 per share payable on November 16, 2017 to shareholders of record as of November 2, 2017. This is the 92nd consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's stock as of September 30, 2017, this dividend represents an annualized yield of approximately 3.7%.

In making this announcement, William J. Wagner, President and CEO, noted, "We are pleased to report normalized earnings this quarter following a two year period during which earnings were impacted by significant restructuring activity. This restructuring included the acquisition of LNB Bancorp, Inc. in August 2015, the consolidation of 24 offices in April 2016, the acquisition of 18 offices in the western New York market in September 2016, the sale of our Maryland region in May 2017 and finally the closure of Northwest Consumer Discount Company in July 2017. These restructuring initiatives have greatly streamlined our operation, resulting in a product and service set that enhances Northwest's ability to successfully compete within our chosen markets as a mid-sized community bank. With that, we were encouraged to see that our efficiency ratio decreased to 60.9% in the current quarter compared to 69.1% in the quarter which last preceded the restructuring initiatives."

Net interest income increased by $5.9 million, or 7.7%, to $83.2 million for the quarter ended September 30, 2017, from $77.3 million for the quarter ended September 30, 2016. This increase is due primarily to a $4.3 million, or 5.3%, increase in interest income on loans receivable as a result of a $308.7 million, or 4.2%, increase in average loans receivable from the prior year period. Also contributing to the increase in net interest income was a $1.2 million, or 36.5%, increase in interest income on investment securities as a result of redirecting excess cash to higher yielding assets.

     Despite higher provisions being required for consumer loans in the current quarter, which were directly related to the closure of the Company's consumer finance subsidiary, the provision for loan losses decreased by $2.5 million, or 45.3%, to $3.0 million for the quarter ended September 30, 2017, from $5.5 million for the quarter ended September 30, 2016. Nonaccrual loans decreased to $73.3 million, or 0.9% of total loans, at September 30, 2017 from $86.3 million, or 1.1% of total loans, at September 30, 2016.
     
Noninterest income increased by $3.8 million, or 18.1%, to $24.6 million for the quarter ended September 30, 2017, from $20.8 million for the quarter ended September 30, 2016. Contributing to this increase were increases in service charges and fees of $1.7 million, or 15.5%, which is attributable to the growth in checking accounts, and trust and other financial services income of $1.4 million, or 39.6%, due primarily to growth in assets under management.





     Noninterest expense decreased by $4.9 million, or 6.6%, to $68.8 million for the quarter ended September 30, 2017, from $73.7 million for the quarter ended September 30, 2016. This decrease is comprised primarily of decreases in restructuring and acquisition expense of $5.8 million, or 80.5%, due to the September 2016 acquisition of 18 offices, and in compensation and employee benefits of $2.1 million, or 5.5%, due to the closure of the Company's consumer finance subsidiary in the current quarter, as well as $5.1 million of expense recorded in the prior year related to termination of the ESOP. Partially offsetting these improvements were increases in premises and occupancy costs of $857,000, processing expenses of $806,000, and amortization of intangible assets of $623,000, due primarily to the previously mentioned acquisition of offices.

Net income for the nine-month period ended September 30, 2017 was $72.3 million, or $0.71 per diluted share. This represents an increase of $47.1 million, or 187.3%, compared to the nine-month period ended September 30, 2016, when net income was $25.2 million, or $0.25 per diluted share. The annualized returns on average shareholders’ equity and average assets for the nine-month period ended September 30, 2017 were 8.16% and 1.01% compared to 2.90% and 0.38% for the same period last year. In addition to the aforementioned items impacting the quarter, net income for the nine-month period ended September 30, 2017 was significantly enhanced by the second quarter sale of the Company's three Maryland offices at a profit of $17.2 million and an increase in net interest income of $22.2 million, or 9.9%, due primarily to the loans received with the acquisition previously discussed. Additionally, earnings for the nine-month period ended September 30, 2016 were negatively impacted by a penalty of $37.0 million relating to the prepayment of $700.0 million of long-term, fixed-rate Federal Home Loan Bank borrowings and the $5.1 million cost associated with the termination of Northwest Bank's ESOP.

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 bank operates 164 full-service community banking offices and nine free standing drive-through facilities in Pennsylvania, New York, and Ohio.  Northwest Bancshares, Inc.’s common stock is listed on the NASDAQ Global Select Market (“NWBI”). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.bank.
 
#                      #                      #
 
Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; and (7) increased risk associated with commercial real-estate and business loans. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.






Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(Dollars in thousands, except per share amounts)
 
September 30,
2017
 
December 31,
2016
 
September 30,
2016
Assets
 

 
 

 
 
Cash and cash equivalents
$
104,372

 
119,403

 
107,604

Interest-earning deposits in other financial institutions
60,662

 
266,902

 
210,723

Federal funds sold and other short-term investments
642

 
3,562

 
2,239

Marketable securities available-for-sale (amortized cost of $867,311, $825,552 and $879,141, respectively)
869,481

 
826,200

 
890,688

Marketable securities held-to-maturity (fair value of $32,282, $20,426 and $23,249, respectively)
31,961

 
19,978

 
22,584

Total cash, interest-earning deposits and marketable securities
1,067,118

 
1,236,045

 
1,233,838

 
 
 
 
 
 
Residential mortgage loans held for sale
1,382

 
9,625

 
30,355

Residential mortgage loans
2,741,844

 
2,688,541

 
2,771,576

Home equity loans
1,313,435

 
1,345,370

 
1,366,187

Consumer loans
673,920

 
642,961

 
628,512

Commercial real estate loans
2,398,886

 
2,342,089

 
2,464,681

Commercial loans
596,671

 
528,761

 
537,255

Total loans receivable
7,726,138

 
7,557,347

 
7,798,566

Allowance for loan losses
(56,927
)
 
(60,939
)
 
(63,246
)
Loans receivable, net
7,669,211

 
7,496,408

 
7,735,320

 
 
 
 
 
 
Assets held-for-sale
—

 
152,528

 
—

Federal Home Loan Bank stock, at cost
7,984

 
7,390

 
7,660

Accrued interest receivable
22,802

 
21,699

 
21,591

Real estate owned, net
5,462

 
4,889

 
4,841

Premises and Equipment, net
152,761

 
161,185

 
167,596

Bank owned life insurance
173,096

 
171,449

 
170,172

Goodwill
307,420

 
307,420

 
307,711

Other intangible assets
27,244

 
32,433

 
33,901

Other assets
26,716

 
32,194

 
31,977

Total assets
$
9,459,814

 
9,623,640

 
9,714,607

 
 
 
 
 
 
Liabilities and Shareholders’ equity
 

 
 

 
 
Liabilities
 

 
 

 
 
Noninterest-bearing demand deposits
$
1,625,189

 
1,448,972

 
1,496,574

Interest-bearing demand deposits
1,451,818

 
1,428,317

 
1,446,971

Money market deposit accounts
1,759,395

 
1,841,567

 
1,896,272

Savings deposits
1,669,782

 
1,622,879

 
1,671,539

Time deposits
1,435,861

 
1,540,586

 
1,691,447

Total deposits
7,942,045

 
7,882,321

 
8,202,803

 
 
 
 
 
 
Liabilities held-for-sale
—

 
215,657

 
—

Borrowed funds
115,388

 
142,899

 
135,891

Advances by borrowers for taxes and insurance
21,864

 
36,879

 
21,616

Accrued interest payable
518

 
635

 
682

Other liabilities
62,939

 
63,373

 
79,599

Junior subordinated debentures
111,213

 
111,213

 
111,213

Total liabilities
8,253,967

 
8,452,977

 
8,551,804

 
 
 
 
 
 
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, 102,565,667 shares, 101,699,406 shares and 101,268,648 issued and outstanding, respectively
1,026

 
1,017

 
1,013

Paid-in-capital
728,163

 
718,834

 
711,974

Retained earnings
502,265

 
478,803

 
469,459

Accumulated other comprehensive loss
(25,607
)
 
(27,991
)
 
(19,643
)
Total shareholders’ equity
1,205,847

 
1,170,663

 
1,162,803

Total liabilities and shareholders’ equity
$
9,459,814

 
9,623,640

 
9,714,607

 
 
 
 
 
 
Equity to assets
12.75
%
 
12.16
%
 
11.97
%
Tangible common equity to assets
9.55
%
 
8.95
%
 
8.76
%
Book value per share
$
11.76

 
11.51

 
11.48

Tangible book value per share
$
8.49

 
8.17

 
8.11

Closing market price per share
$
17.27

 
18.03

 
15.71

Full time equivalent employees
2,137

 
2,306

 
2,268

Number of banking offices
173

 
176

 
176





Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share amounts)
 
 
Quarter ended
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
September 30,
2016
 
 
Interest income:
 

 
 

 
 

 
 

 
 
 
Loans receivable
$
85,373

 
84,714

 
82,751

 
85,669

 
81,083

 
Mortgage-backed securities
3,118

 
2,987

 
2,222

 
2,166

 
2,030

 
Taxable investment securities
957

 
981

 
1,006

 
988

 
627

 
Tax-free investment securities
476

 
529

 
569

 
625

 
676

 
FHLB dividends
63

 
50

 
59

 
285

 
218

 
Interest-earning deposits
244

 
536

 
660

 
300

 
114

 
Total interest income
90,231

 
89,797

 
87,267

 
90,033

 
84,748

 
 
 
 
 
 
 
 
 
 
 
 
Interest expense:
 

 
 

 
 

 
 

 
 

 
Deposits
5,795

 
5,826

 
5,465

 
5,859

 
5,653

 
Borrowed funds
1,199

 
1,240

 
1,225

 
1,232

 
1,801

 
Total interest expense
6,994

 
7,066

 
6,690

 
7,091



7,454

 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
83,237

 
82,731

 
80,577

 
82,942



77,294

 
Provision for loan losses
3,027

 
5,562

 
4,637

 
2,145

 
5,538

 
Net interest income after provision for loan losses
80,210

 
77,169

 
75,940

 
80,797



71,756

 
 
 

 
 
 
 

 
 
 
 

 
Noninterest income:
 
 
 

 
 
 
 

 
 
 
Gain on sale of investments
1,497

 
3

 
17

 
213

 
58

 
Service charges and fees
12,724

 
12,749

 
11,717

 
12,406

 
11,012

 
Trust and other financial services income
4,793

 
4,600

 
4,304

 
4,131

 
3,434

 
Insurance commission income
1,992

 
2,353

 
2,794

 
2,499

 
2,541

 
Gain/ (loss) on real estate owned, net
(193
)
 
(230
)
 
(67
)
 
164

 
(563
)
 
Income from bank owned life insurance
1,078

 
1,652

 
1,068

 
1,281

 
1,380

 
Mortgage banking income
519

 
434

 
240

 
2,344

 
1,886

 
Gain on sale of offices
—

 
17,186

 
—

 
—

 
—

 
Other operating income
2,184

 
2,730

 
1,431

 
1,781

 
1,070

 
Total noninterest income
24,594

 
41,477

 
21,504

 
24,819



20,818

 
 
 

 
 
 
 

 
 
 
 

 
Noninterest expense:
 
 
 

 
 
 
 

 
 
 
Compensation and employee benefits
36,039

 
37,658

 
37,755

 
36,562

 
38,122

 
Premises and occupancy costs
6,951

 
7,103

 
7,516

 
7,228

 
6,094

 
Office operations
3,939

 
4,170

 
4,222

 
4,395

 
3,700

 
Collections expense
568

 
553

 
549

 
437

 
589

 
Processing expenses
9,650

 
9,639

 
9,909

 
9,429

 
8,844

 
Marketing expenses
2,488

 
2,846

 
2,148

 
2,181

 
2,239

 
Federal deposit insurance premiums
771

 
856

 
1,167

 
475

 
984

 
Professional services
2,321

 
2,452

 
2,575

 
2,088

 
1,815

 
Amortization of intangible assets
1,691

 
1,749

 
1,749

 
1,806

 
1,068

 
Real estate owned expense
310

 
217

 
282

 
192

 
206

 
Restructuring/ acquisition expense
1,398

 
2,634

 
223

 
1,009

 
7,183

 
Other expense
2,673

 
3,385

 
3,551

 
2,959

2,836

2,836

 
Total noninterest expense
68,799

 
73,262

 
71,646

 
68,761



73,680

 
Income/ (loss) before income taxes
36,005

 
45,384

 
25,798

 
36,855



18,894

 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense/ (benefit)
12,414

 
14,402

 
8,052

 
12,361

 
4,697

 
Net income/ (loss)
$
23,591

 
30,982

 
17,746


24,494



14,197

 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings/ (loss) per share
$
0.23

 
0.31

 
0.18

 
0.24

 
0.14

 
Diluted earnings/ (loss) per share
$
0.23

 
0.30

 
0.17

 
0.24

 
0.14

 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic
101,163,534

 
100,950,772

 
100,653,277

 
100,219,370

 
99,602,535

 
Weighted average common shares outstanding - diluted
102,564,476

 
102,449,693

 
102,480,549

 
100,089,892

 
101,068,245

 
 
 
 
 
 
 
 
 
 
 
 
Annualized return on average equity
7.81
%
 
10.48
%
 
6.15
%
 
8.37
%
 
4.89
%
 
Annualized return on average assets
0.99
%
 
1.30
%
 
0.75
%
 
1.01
%
 
0.63
%
 
Annualized return on tangible common equity
10.74
%
 
14.44
%
 
8.57
%
 
11.73
%
 
6.88
%
 
 
 
 
 
 
 
 
 
 
 
 
Efficiency ratio *
60.94
%

64.36
%
 
68.25
%
 
61.20
%


66.69
%
 
Annualized noninterest expense to average assets *
2.76
%
 
2.89
%
 
2.94
%
 
2.73
%
 
2.88
%

* Excludes gain on sale of offices and 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)
 
 
Nine months ended September 30,
 
2017
 
2016
Interest income:
 

 
 

Loans receivable
$
252,838

 
243,370

Mortgage-backed securities
8,327

 
6,374

Taxable investment securities
2,944

 
2,421

Tax-free investment securities
1,574

 
2,107

FHLB dividends
172

 
1,086

Interest-earning deposits
1,440

 
243

Total interest income
267,295

 
255,601

 
 
 
 
Interest expense:
 

 
 

Deposits
17,086

 
17,606

Borrowed funds
3,664

 
13,602

Total interest expense
20,750

 
31,208

 
 
 
 
Net interest income
246,545

 
224,393

Provision for loan losses
13,226

 
11,397

Net interest income after provision for loan losses
233,319

 
212,996

 
 
 
 
Noninterest income:
 

 
 

Gain on sale of investments
1,517

 
412

Service charges and fees
37,190

 
31,707

Trust and other financial services income
13,697

 
9,972

Insurance commission income
7,139

 
8,023

Gain/(loss) on real estate owned, net
(490
)
 
(203
)
Income from bank owned life insurance
3,798

 
4,080

Mortgage banking income
1,193

 
2,550

Gain on sale of offices
17,186

 
—

Other operating income
6,345

 
4,000

Total noninterest income
87,575

 
60,541

 
 
 
 
Noninterest expense:
 

 
 

Compensation and employee benefits
111,452

 
104,365

Premises and occupancy costs
21,570

 
18,906

Office operations
12,331

 
10,503

Collections expense
1,670

 
1,994

Processing expenses
29,198

 
25,430

Marketing expenses
7,482

 
6,671

Federal deposit insurance premiums
2,794

 
3,929

Professional services
7,348

 
5,777

Amortization of intangible assets
5,189

 
2,453

Real estate owned expense
809

 
812

Restructuring/ acquisition expense
4,255

 
11,204

FHLB prepayment penalty
—

 
36,978

Other expense
9,609

 
10,055

Total noninterest expense
213,707

 
239,077

Income before income taxes
107,187

 
34,460

 
 
 
 
Income tax expense
34,868

 
9,287

Net income
$
72,319

 
25,173

 
 
 
 
Basic earnings per share
$
0.72

 
0.25

Diluted earnings per share
$
0.71

 
0.25

 
 
 
 
Weighted average common shares outstanding - basic
100,921,322

 
99,224,565

Weighted average common shares outstanding - diluted
102,538,342

 
100,233,507

 
 
 
 
Annualized return on average equity
8.16
%
 
2.90
%
Annualized return on average assets
1.01
%
 
0.38
%
Annualized return on tangible common equity
11.10
%
 
4.05
%
 
 
 
 
Efficiency ratio *
64.45
%

66.14
%
Annualized noninterest expense to average assets *
2.86
%
 
2.82
%

* Excludes gain on sale of offices and 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
 September 30,
 
Nine months ended
September 30,
 
2017
 
2016
 
2017
 
2016
Operating results (non-GAAP):
 

 
 

 
 

 
 

Net interest income
$
83,237

 
77,294

 
246,545

 
224,393

Provision for loan losses
3,027

 
5,538

 
13,226

 
11,397

Noninterest income
24,594

 
20,818

 
70,389

 
60,541

Noninterest expense
67,401

 
61,360

 
209,452

 
185,758

Income taxes
12,973

 
9,625

 
29,696

 
30,616

Net operating income (non-GAAP)
$
24,430

 
21,589

 
64,560

 
57,163

Diluted earnings per share (non-GAAP)
$
0.24

 
0.21

 
0.63

 
0.57

 
 
 
 
 
 
 
 
Average equity
$
1,198,417

 
1,156,137

 
1,184,560

 
1,158,346

Average assets
9,460,877

 
9,028,886

 
9,540,432

 
8,940,648

 
 
 
 
 
 
 
 
Annualized ROE (non-GAAP)
8.09
%
 
7.43
%
 
7.29
%
 
6.59
%
Annualized ROA (non-GAAP)
1.02
%
 
0.95
%
 
0.90
%
 
0.85
%
 
 
 
 
 
 
 
 
Reconciliation of net operating income to net income:
 

 
 

 
 

 
 

Net operating income (non-GAAP)
$
24,430

 
21,589

 
64,560

 
57,163

Nonoperating income/ expenses, net of tax:
 

 
 

 
 

 
 

Gain on sale of offices
—

 
—

 
10,311

 
—

Restructuring/ acquisition expenses
(839
)
 
(4,311
)
 
(2,552
)
 
(6,723
)
Stock-based compensation expense - ESOP termination
—

 
(3,081
)
 
—

 
(3,081
)
FHLB prepayment penalty
—

 
—

 
—

 
(22,186
)
Net income/ (loss) (GAAP)
$
23,591

 
14,197

 
72,319

 
25,173

Diluted earnings per share (GAAP)
$
0.23

 
0.14

 
0.71

 
0.25

 
 
 
 
 
 
 
 
Annualized ROE (GAAP)
7.81
%
 
4.89
%
 
8.16
%
 
2.90
%
Annualized ROA (GAAP)
0.99
%
 
0.63
%
 
1.01
%
 
0.38
%
* The table summarizes the Company’s results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude certain income and expenses net of tax benefit and cost. The net tax effect was calculated using statutory tax rates of approximately 40.0%. 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
Asset Quality (Unaudited)
(Dollars in thousands)
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
September 30,
2016
Nonaccrual loans current:
 

 
 

 
 

 
 

 
 

Residential mortgage loans
$
318

 
841

 
1,864

 
2,109

 
3,063

Home equity loans
439

 
158

 
1,244

 
1,451

 
1,446

Legacy consumer finance loans
1

 
—

 
—

 
—

 
—

Consumer loans
259

 
379

 
633

 
520

 
464

Commercial real estate loans
10,646

 
16,189

 
13,347

 
13,955

 
19,246

Commercial loans
4,098

 
5,262

 
5,335

 
5,361

 
7,299

Total nonaccrual loans current
$
15,761

 
22,829

 
22,423

 
23,396

 
31,518

 
 
 
 
 
 
 
 
 
 
Nonaccrual loans delinquent 30 days to 59 days:
 
 
 

 
 

 
 

 
 

Residential mortgage loans
$
200

 
181

 
1,001

 
1,464

 
344

Home equity loans
466

 
164

 
328

 
422

 
315

Legacy consumer finance loans
—

 
—

 
—

 
—

 
—

Consumer loans
200

 
169

 
218

 
400

 
211

Commercial real estate loans
597

 
474

 
1,970

 
3,478

 
514

Commercial loans
—

 
32

 
328

 
145

 
185

Total nonaccrual loans delinquent 30 days to 59 days
$
1,463

 
1,020

 
3,845

 
5,909

 
1,569

 
 
 
 
 
 
 
 
 
 
Nonaccrual loans delinquent 60 days to 89 days:
 

 
 

 
 

 
 

 
 

Residential mortgage loans
$
892

 
896

 
704

 
1,522

 
1,270

Home equity loans
499

 
326

 
408

 
440

 
465

Legacy consumer finance loans
—

 
—

 
—

 
—

 
—

Consumer loans
405

 
342

 
242

 
366

 
250

Commercial real estate loans
5,895

 
2,233

 
540

 
2,027

 
151

Commercial loans
3

 
—

 
23

 
695

 
319

Total nonaccrual loans delinquent 60 days to 89 days
$
7,694

 
3,797

 
1,917

 
5,050

 
2,455

 
 
 
 
 
 
 
 
 
 
Nonaccrual loans delinquent 90 days or more:
 

 
 

 
 

 
 

 
 

Residential mortgage loans
$
11,785

 
11,637

 
11,911

 
13,169

 
13,242

Home equity loans
6,295

 
5,744

 
6,194

 
5,552

 
5,874

Legacy consumer finance loans
332

 
536

 
471

 
743

 
800

Consumer loans
3,244

 
2,273

 
2,888

 
3,080

 
2,554

Commercial real estate loans
22,583

 
21,295

 
20,897

 
19,264

 
22,155

Commercial loans
4,177

 
3,642

 
2,744

 
3,373

 
6,105

Total nonaccrual loans delinquent 90 days or more
$
48,416

 
45,127

 
45,105

 
45,181

 
50,730

 
 
 
 
 
 
 
 
 
 
Total nonaccrual loans
$
73,334

 
72,773

 
73,290

 
79,536

 
86,272

 
 
 
 
 
 
 
 
 
 
Total nonaccrual loans
$
73,334

 
72,773

 
73,290

 
79,536

 
86,272

Loans 90 days past maturity and still accruing
398

 
182

 
265

 
649

 
103

Nonperforming loans
73,732


72,955


73,555


80,185


86,375

Real estate owned, net
5,462

 
6,030

 
6,242

 
4,889

 
4,841

Nonperforming assets
$
79,194

 
78,985

 
79,797

 
85,074

 
91,216

 
 
 
 
 
 
 
 
 
 
Nonaccrual troubled debt restructuring *
$
17,809

 
17,873

 
18,273

 
16,346

 
17,374

Accruing troubled debt restructuring
20,660

 
23,987

 
25,305

 
26,580

 
29,221

Total troubled debt restructuring
$
38,469

 
41,860

 
43,578

 
42,926

 
46,595

 
 
 
 
 
 
 
 
 
 
Nonperforming loans to total loans
0.95
%
 
0.95
%
 
0.97
%
 
1.06
%
 
1.11
%
Nonperforming assets to total assets
0.84
%
 
0.83
%
 
0.82
%
 
0.88
%
 
0.94
%
Allowance for loan losses to total loans
0.74
%
 
0.82
%
 
0.81
%
 
0.81
%
 
0.81
%
Allowance for loan losses to nonperforming loans
77.16
%
 
86.20
%
 
83.07
%
 
76.00
%
 
73.22
%
* Amounts included in nonperforming loans above.




Northwest Bancshares, Inc. and Subsidiaries
Loans by Credit Quality Indicators (Unaudited)
(Dollars in thousands)
 
At September 30, 2017
 
Pass
 
Special
mention  *
 
Substandard  **
 
Doubtful
 
Loss
 
Loans
receivable
Personal Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
$
2,725,060

 
—

 
18,166

 
—

 
—

 
2,743,226

Home equity loans
 
1,302,036

 
—

 
11,399

 
—

 
—

 
1,313,435

Consumer loans
 
669,532

 
—

 
4,388

 
—

 
—

 
673,920

Total Personal Banking
 
4,696,628

 
—

 
33,953

 
—

 
—

 
4,730,581

Commercial Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate loans
 
2,196,510

 
56,118

 
146,258

 
—

 
—

 
2,398,886

Commercial loans
 
526,824

 
18,924

 
50,923

 
—

 
—

 
596,671

Total Commercial Banking
 
2,723,334

 
75,042

 
197,181

 
—

 
—

 
2,995,557

Total loans
 
$
7,419,962

 
75,042

 
231,134

 
—

 
—

 
7,726,138

 
 
 
 
 
 
 
 
 
 
 
 
 
At June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Personal Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
$
2,718,866

 
—

 
16,916

 
—

 
—

 
2,735,782

Home equity loans
 
1,307,022

 
—

 
8,699

 
—

 
—

 
1,315,721

Consumer loans
 
655,149

 
—

 
2,976

 
—

 
—

 
658,125

Total Personal Banking
 
4,681,037

 
—

 
28,591

 
—

 
—

 
4,709,628

Commercial Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate loans
 
2,178,996

 
67,826

 
149,841

 
—

 
—

 
2,396,663

Commercial loans
 
521,520

 
10,269

 
48,657

 
—

 
—

 
580,446

Total Commercial Banking
 
2,700,516

 
78,095

 
198,498

 
—

 
—

 
2,977,109

Total loans
 
$
7,381,553

 
78,095

 
227,089

 
—

 
—

 
7,686,737

 
 
 
 
 
 
 
 
 
 
 
 
 
At March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Personal Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
$
2,673,678

 
—

 
16,866

 
—

 
—

 
2,690,544

Home equity loans
 
1,311,707

 
—

 
9,212

 
—

 
—

 
1,320,919

Consumer loans
 
639,574

 
—

 
3,531

 
—

 
—

 
643,105

Total Personal Banking
 
4,624,959

 
—

 
29,609

 
—

 
—

 
4,654,568

Commercial Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate loans
 
2,187,545

 
48,189

 
142,740

 
—

 
—

 
2,378,474

Commercial loans
 
474,662

 
12,226

 
43,158

 
—

 
—

 
530,046

Total Commercial Banking
 
2,662,207

 
60,415

 
185,898

 
—

 
—

 
2,908,520

Total loans
 
$
7,287,166

 
60,415

 
215,507

 
—

 
—

 
7,563,088

 
 
 
 
 
 
 
 
 
 
 
 
 
At December 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Personal Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
$
2,680,107

 
—

 
18,059

 
—

 
—

 
2,698,166

Home equity loans
 
1,335,596

 
—

 
9,774

 
—

 
—

 
1,345,370

Consumer loans
 
639,044

 
—

 
3,917

 
—

 
—

 
642,961

Total Personal Banking
 
4,654,747

 
—

 
31,750

 
—

 
—

 
4,686,497

Commercial Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate loans
 
2,153,328

 
43,724

 
145,037

 
—

 
—

 
2,342,089

Commercial loans
 
469,993

 
17,192

 
41,576

 
—

 
—

 
528,761

Total Commercial Banking
 
2,623,321

 
60,916

 
186,613

 
—

 
—

 
2,870,850

Total loans
 
$
7,278,068

 
60,916

 
218,363

 
—

 
—

 
7,557,347

 
 
 
 
 
 
 
 
 
 
 
 
 
At September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Personal Banking:
 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
$
2,783,338

 
—

 
18,593

 
—

 
—

 
2,801,931

Home equity loans
 
1,355,725

 
—

 
10,462

 
—

 
—

 
1,366,187

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

 

* Includes $8.9 million $9.7 million, $12.4 million, $9.4 million, and $19.3 million of acquired loans at September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016, and September 30, 2016, respectively.
** Includes $48.2 million, $44.8 million, $45.3 million, $39.1 million, and $29.8 million of acquired loans at September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016, and September 30, 2016, respectively.




Northwest Bancshares, Inc. and Subsidiaries
Loan Delinquency (Unaudited)
(Dollars in thousands)
 
 
 
September 30, 2017
 
*
 
June 30, 2017
 
*
 
March 31, 2017
 
*
 
December 30, 2016
 
*
 
September 30, 2016
 
*
(Number of loans and dollar amount of loans)
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loans delinquent 30 days to 59 days:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
44

 
$
2,771

 
0.1
%
 
64

 
$
2,893

 
0.1
%
 
280

 
$
22,254

 
0.8
%
 
360

 
$
27,386

 
1.0
%
 
74

 
$
3,380

 
0.1
%
Home equity loans
 
191

 
7,330

 
0.6
%
 
111

 
4,058

 
0.3
%
 
125

 
4,586

 
0.4
%
 
179

 
6,805

 
0.5
%
 
164

 
4,984

 
0.4
%
Legacy consumer finance loans
 
1,045

 
3,065

 
11.4
%
 
581

 
1,785

 
4.1
%
 
308

 
947

 
1.8
%
 
410

 
1,255

 
2.1
%
 
472

 
1,566

 
2.6
%
Consumer loans
 
1,119

 
9,510

 
1.5
%
 
818

 
6,793

 
1.1
%
 
714

 
6,210

 
1.1
%
 
1,087

 
8,613

 
1.5
%
 
797

 
6,017

 
1.1
%
Commercial real estate loans
 
27

 
5,753

 
0.2
%
 
38

 
4,629

 
0.2
%
 
60

 
9,364

 
0.4
%
 
61

 
10,377

 
0.4
%
 
28

 
3,855

 
0.2
%
Commercial loans
 
16

 
746

 
0.1
%
 
20

 
1,378

 
0.2
%
 
29

 
2,304

 
0.4
%
 
20

 
1,178

 
0.2
%
 
26

 
1,493

 
0.3
%
Total loans delinquent 30 days to 59 days
 
2,442

 
$
29,175

 
0.4
%
 
1,632

 
$
21,536

 
0.3
%
 
1,516

 
$
45,665

 
0.6
%
 
2,117

 
$
55,614

 
0.7
%
 
1,561

 
$
21,295

 
0.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans delinquent 60 days to 89 days:
 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
84

 
$
7,196

 
0.3
%
 
72

 
$
6,320

 
0.2
%
 
28

 
$
1,594

 
0.1
%
 
80

 
$
6,227

 
0.2
%
 
76

 
$
6,174

 
0.2
%
Home equity loans
 
73

 
2,390

 
0.2
%
 
44

 
1,522

 
0.1
%
 
36

 
1,145

 
0.1
%
 
62

 
1,563

 
0.1
%
 
41

 
1,145

 
0.1
%
Legacy consumer finance loans
 
831

 
2,190

 
8.1
%
 
276

 
759

 
1.7
%
 
164

 
475

 
0.9
%
 
235

 
766

 
1.3
%
 
236

 
729

 
1.2
%
Consumer loans
 
473

 
3,283

 
0.5
%
 
347

 
2,475

 
0.4
%
 
266

 
1,766

 
0.3
%
 
401

 
2,843

 
0.5
%
 
296

 
1,944

 
0.3
%
Commercial real estate loans
 
22

 
7,666

 
0.3
%
 
14

 
3,368

 
0.1
%
 
19

 
3,034

 
0.1
%
 
25

 
4,495

 
0.2
%
 
13

 
1,102

 
—
%
Commercial loans
 
9

 
196

 
—
%
 
9

 
199

 
—
%
 
10

 
499

 
0.1
%
 
21

 
2,081

 
0.4
%
 
9

 
594

 
0.1
%
Total loans delinquent 60 days to 89 days
 
1,492

 
$
22,921

 
0.3
%
 
762

 
$
14,643

 
0.2
%
 
523

 
$
8,513

 
0.1
%
 
824

 
$
17,975

 
0.2
%
 
671

 
$
11,688

 
0.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans delinquent 90 days or more: **
 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
 
143

 
$
12,190

 
0.4
%
 
145

 
$
12,053

 
0.4
%
 
139

 
$
12,326

 
0.5
%
 
169

 
$
13,621

 
0.5
%
 
168

 
$
13,478

 
0.5
%
Home equity loans
 
150

 
6,397

 
0.5
%
 
126

 
5,800

 
0.4
%
 
143

 
6,258

 
0.5
%
 
155

 
5,756

 
0.4
%
 
137

 
6,022

 
0.4
%
Legacy consumer finance loans
 
124

 
332

 
1.2
%
 
188

 
536

 
1.2
%
 
169

 
471

 
0.9
%
 
228

 
743

 
1.2
%
 
242

 
800

 
1.3
%
Consumer loans
 
428

 
3,254

 
0.5
%
 
299

 
2,285

 
0.4
%
 
363

 
2,901

 
0.5
%
 
418

 
3,095

 
0.5
%
 
515

 
2,572

 
0.5
%
Commercial real estate loans
 
113

 
23,310

 
1.0
%
 
108

 
22,044

 
0.9
%
 
106

 
23,009

 
1.0
%
 
101

 
21,270

 
0.9
%
 
106

 
24,533

 
1.0
%
Commercial loans
 
45

 
4,177

 
0.7
%
 
39

 
3,642

 
0.6
%
 
39

 
2,744

 
0.5
%
 
37

 
3,520

 
0.7
%
 
28

 
6,249

 
1.2
%
Total loans delinquent 90 days or more
 
1,003

 
$
49,660

 
0.6
%
 
905

 
$
46,360

 
0.6
%
 
959

 
$
47,709

 
0.6
%
 
1,108

 
$
48,005

 
0.6
%
 
1,196

 
$
53,654

 
0.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans delinquent
 
4,937

 
$
101,756

 
1.3
%
 
3,299

 
$
82,539

 
1.1
%
 
2,998

 
$
101,887

 
1.3
%
 
4,049

 
$
121,594

 
1.5
%
 
3,428

 
$
86,637

 
1.1
%

* Represents delinquency, in dollars, divided by the respective total amount of that class of loan outstanding.
** Includes purchased credit impaired loans of $1.2 million, $1.2 million, $2.6 million, $2.8 million, and $2.9 million at September 30, 2017, June 30, 2017, March 31,2017, December 31, 2016, and September 30, 2016, respectively.





Northwest Bancshares, Inc. and Subsidiaries
Allowance for Loan Losses (Unaudited)
(Dollars in thousands)
 
 
Quarter ended
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
September 30,
2016
Beginning balance
$
62,885

 
61,104

 
60,939

 
63,246

 
60,781

Provision
3,027

 
5,562

 
4,637

 
2,145

 
5,538

Charge-offs residential mortgage
(215
)
 
(372
)
 
(290
)
 
(710
)
 
(354
)
Charge-offs home equity
(528
)
 
(689
)
 
(649
)
 
(321
)
 
(288
)
Charge-offs legacy consumer finance
(3,891
)
 
(782
)
 
(796
)
 
(1,003
)
 
(835
)
Charge-offs consumer
(3,002
)
 
(2,735
)
 
(2,864
)
 
(2,466
)
 
(1,866
)
Charge-offs commercial real estate
(1,901
)
 
(329
)
 
(474
)
 
(323
)
 
(789
)
Charge-offs commercial
(509
)
 
(929
)
 
(1,267
)
 
(2,489
)
 
(708
)
Recoveries
1,061

 
2,055

 
1,868

 
2,860

 
1,767

Ending balance
$
56,927

 
62,885

 
61,104

 
60,939

 
63,246

 
 
 
 
 
 
 
 
 
 
Net charge-offs to average loans, annualized
0.47
%
 
0.20
%
 
0.23
%
 
0.23
%
 
0.17
%

 
Nine months ended September 30,
 
2017
 
2016
Beginning balance
$
60,939

 
62,672

Provision
13,226

 
11,397

Charge-offs residential mortgage
(877
)
 
(2,770
)
Charge-offs home equity
(1,866
)
 
(2,218
)
Charge-offs legacy consumer finance
(5,469
)
 
(2,321
)
Charge-offs consumer
(8,601
)
 
(5,115
)
Charge-offs commercial real estate
(2,704
)
 
(3,417
)
Charge-offs commercial
(2,705
)
 
(1,728
)
Recoveries
4,984

 
6,746

Ending balance
$
56,927

 
63,246

 
 
 
 
Net charge-offs to average loans, annualized
0.30
%
 
0.20
%

 
September 30, 2017
 
Originated loans
 
Acquired loans
 
Total loans
 
Balance
 
Reserve
 
Balance
 
Reserve
 
Balance
 
Reserve
Residential mortgage loans
$
2,623,763

 
3,986

 
119,463

 
77

 
2,743,226

 
4,063

Home equity loans
1,045,152

 
3,295

 
268,283

 
748

 
1,313,435

 
4,043

Legacy consumer finance loans
26,892

 
4,876

 
—

 
—

 
26,892

 
4,876

Consumer loans
534,618

 
7,383

 
112,410

 
594

 
647,028

 
7,977

Personal Banking Loans
4,230,425


19,540


500,156


1,419

 
4,730,581

 
20,959

 
 
 
 
 
 
 
 
 

 

Commercial real estate loans
2,089,383

 
20,174

 
309,503

 
3,301

 
2,398,886

 
23,475

Commercial loans
528,231

 
11,131

 
68,440

 
1,362

 
596,671

 
12,493

Commercial Banking Loans
2,617,614


31,305


377,943


4,663

 
2,995,557

 
35,968

 
 
 
 
 
 
 
 
 
 
 
 
Total Loans
$
6,848,039


50,845


878,099


6,082

 
7,726,138

 
56,927






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 
 
September 30, 2017
 
June 30, 2017
 
March 31, 2017
 
December 31, 2016
 
September 30, 2016
 
Average
balance
 
Interest
 
Avg.
yield/
cost (h)
 
Average
balance
 
Interest
 
Avg.
yield/
cost (h)
 
Average
balance
 
Interest
 
Avg.
yield/
cost (h)
 
Average
balance
 
Interest
 
Avg.
yield/
cost (h)
 
Average
balance
 
Interest
 
Avg.
yield/
cost (h)
Assets:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Interest-earning assets:
 
 
 
 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

Residential mortgage loans
$
2,732,546

 
28,279

 
4.14
%
 
$
2,721,445

 
28,245

 
4.15
%
 
$
2,718,904

 
27,309

 
4.02
%
 
$
2,766,693

 
28,165

 
4.07
%
 
$
2,739,099

 
27,952

 
4.08
%
Home equity loans
1,299,473

 
14,694

 
4.49
%
 
1,311,274

 
14,344

 
4.39
%
 
1,332,647

 
14,201

 
4.32
%
 
1,346,856

 
14,442

 
4.27
%
 
1,192,929

 
12,884

 
4.30
%
Consumer loans
617,754

 
7,627

 
4.90
%
 
595,170

 
7,405

 
4.99
%
 
580,836

 
7,219

 
5.04
%
 
571,108

 
7,580

 
5.28
%
 
504,376

 
6,267

 
4.94
%
Legacy consumer finance loans
33,469

 
1,433

 
17.13
%
 
40,945

 
2,110

 
20.61
%
 
46,452

 
2,482

 
21.37
%
 
49,186

 
2,503

 
20.36
%
 
50,578

 
2,664

 
21.07
%
Commercial real estate loans
2,389,969

 
27,234

 
4.46
%
 
2,430,594

 
27,071

 
4.41
%
 
2,456,070

 
26,562

 
4.33
%
 
2,467,569

 
27,863

 
4.42
%
 
2,394,001

 
26,683

 
4.36
%
Commercial loans
593,143

 
6,659

 
4.39
%
 
554,506

 
6,087

 
4.34
%
 
522,847

 
5,515

 
4.22
%
 
527,330

 
5,682

 
4.27
%
 
476,715

 
5,193

 
4.26
%
Total loans receivable (a) (b) (d)
7,666,354

 
85,926

 
4.45
%
 
7,653,934

 
85,262

 
4.47
%
 
7,657,756

 
83,288

 
4.41
%
 
7,728,742

 
86,235

 
4.44
%
 
7,357,698

 
81,643

 
4.41
%
Mortgage-backed securities (c)
607,454

 
3,118

 
2.05
%
 
592,917

 
2,987

 
2.02
%
 
471,674

 
2,222

 
1.88
%
 
482,707

 
2,166

 
1.79
%
 
440,966

 
2,030

 
1.84
%
Investment securities (c) (d)
352,813

 
1,690

 
1.92
%
 
372,398

 
1,796

 
1.93
%
 
377,819

 
1,881

 
1.99
%
 
401,602

 
1,950

 
1.94
%
 
275,718

 
1,667

 
2.42
%
FHLB stock
7,748

 
63

 
3.23
%
 
7,602

 
50

 
2.64
%
 
7,305

 
59

 
3.28
%
 
7,575

 
285

 
4.54
%
 
27,761

 
218

 
3.12
%
Other interest-earning deposits
71,482

 
243

 
1.33
%
 
208,141

 
536

 
1.02
%
 
294,391

 
660

 
0.90
%
 
325,889

 
300

 
0.36
%
 
91,243

 
114

 
0.49
%
Total interest-earning assets
8,705,851

 
91,040

 
4.15
%
 
8,834,992

 
90,631

 
4.11
%
 
8,808,945

 
88,110

 
4.06
%
 
8,946,515

 
90,936

 
4.04
%
 
8,193,386

 
85,672

 
4.16
%
Noninterest earning assets (e)
755,026

 
 

 
 
 
716,913

 
 

 
 
 
799,569

 
 

 
 

 
677,888

 
 

 
 

 
835,500

 
 

 
 

Total assets
$
9,460,877

 
 

 
 
 
$
9,551,905

 
 

 
 
 
$
9,608,514

 
 

 
 

 
$
9,624,403

 
 

 
 

 
$
9,028,886

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and shareholders’ equity:
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Interest-bearing liabilities:
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Savings deposits
$
1,681,777

 
776

 
0.18
%
 
$
1,714,290

 
768

 
0.18
%
 
$
1,702,528

 
755

 
0.18
%
 
$
1,668,492

 
771

 
0.18
%
 
$
1,485,763

 
744

 
0.20
%
Interest-bearing demand deposits
1,435,143

 
297

 
0.08
%
 
1,451,787

 
283

 
0.08
%
 
1,422,284

 
116

 
0.03
%
 
1,431,671

 
85

 
0.02
%
 
1,179,557

 
78

 
0.03
%
Money market deposit accounts
1,789,082

 
1,048

 
0.23
%
 
1,839,693

 
1,064

 
0.23
%
 
1,879,292

 
1,074

 
0.23
%
 
1,890,220

 
1,101

 
0.23
%
 
1,418,779

 
826

 
0.23
%
Time deposits
1,449,830

 
3,674

 
1.01
%
 
1,518,650

 
3,711

 
0.98
%
 
1,573,574

 
3,520

 
0.91
%
 
1,643,785

 
3,902

 
0.94
%
 
1,597,542

 
4,005

 
1.00
%
Borrowed funds (f)
106,282

 
49

 
0.18
%
 
126,685

 
55

 
0.17
%
 
136,872

 
58

 
0.17
%
 
143,540

 
61

 
0.17
%
 
560,407

 
657

 
0.47
%
Junior subordinated debentures
111,213

 
1,150

 
4.05
%
 
111,213

 
1,185

 
4.22
%
 
111,213

 
1,167

 
4.20
%
 
111,213

 
1,171

 
4.12
%
 
111,213

 
1,144

 
4.03
%
Total interest-bearing liabilities
6,573,327

 
6,994

 
0.42
%
 
6,762,318

 
7,066

 
0.42
%
 
6,825,763

 
6,690

 
0.40
%
 
6,888,921

 
7,091

 
0.41
%
 
6,353,261

 
7,454

 
0.47
%
Noninterest-bearing demand deposits (g)
1,573,112

 
 

 
 
 
1,544,953

 
 

 
 
 
1,506,268

 
 

 
 

 
1,493,528

 
 

 
 

 
1,243,474

 
 

 
 

Noninterest bearing liabilities
116,021

 
 

 
 
 
59,277

 
 

 
 

 
106,578

 
 

 
 

 
77,827

 
 

 
 

 
276,014

 
 

 
 

Total liabilities
8,262,460

 
 

 
 
 
8,366,548

 
 

 
 

 
8,438,609

 
 

 
 

 
8,460,276

 
 

 
 

 
7,872,749

 
 

 
 

Shareholders’ equity
1,198,417

 
 

 
 

 
1,185,357

 
 

 
 

 
1,169,905

 
 

 
 

 
1,164,127

 
 

 
 

 
1,156,137

 
 

 
 

Total liabilities and shareholders’ equity
$
9,460,877

 
 

 
 

 
$
9,551,905

 
 

 
 

 
$
9,608,514

 
 

 
 

 
$
9,624,403

 
 

 
 

 
$
9,028,886

 
 

 
 

Net interest income/ Interest rate spread
 

 
84,046

 
3.73
%
 
 

 
83,565

 
3.69
%
 
 

 
81,420

 
3.66
%
 
 

 
83,845

 
3.63
%
 
 

 
78,218

 
3.69
%
Net interest-earning assets/ Net interest margin
$
2,132,524

 
 

 
3.86
%
 
$
2,072,674

 
 

 
3.78
%
 
$
1,983,182

 
 

 
3.75
%
 
$
2,057,594

 
 

 
3.75
%
 
$
1,840,125

 
 

 
3.82
%
Ratio of interest-earning assets to interest-bearing liabilities
1.32X

 
 

 
 

 
1.31X

 
 

 
 

 
1.29X

 
 

 
 

 
1.30X

 
 

 
 

 
1.29X

 
 

 
 

 
(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%, 0.29%, 0.27%, 0.29% and 0.32%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.42%, 4.44%, 4.38%, 4.41% and 4.38%, respectively, Investment securities - 1.62%, 1.62%, 1.67%, 1.61% and 1.89%, respectively, Interest-earning assets - 4.11%, 4.08%, 4.02%, 4.00% and 4.11%, respectively. GAAP basis net interest rate spreads were 3.69%, 3.66%, 3.62%, 3.59% and 3.65%, respectively, and GAAP basis net interest margins were 3.82%, 3.75%, 3.71%, 3.71% and 3.77%, 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.
 
 
Nine months ended September 30,
 
2017
 
2016
 
Average
balance
 
Interest
 
Avg.
yield/
cost (h)
 
Average
balance
 
Interest
 
Avg.
yield/
cost (h)
Assets:
 

 
 

 
 

 
 

 
 

 
 

Interest-earning assets:
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage loans
$
2,724,348

 
83,833

 
4.10
%
 
$
2,743,480

 
86,826

 
4.22
%
Home equity loans
1,314,344

 
43,239

 
4.40
%
 
1,178,133

 
38,229

 
4.33
%
Consumer loans
598,056

 
22,251

 
4.97
%
 
477,814

 
17,768

 
4.97
%
Legacy consumer finance loans
40,241

 
6,025

 
19.96
%
 
51,542

 
8,080

 
20.90
%
Commercial real estate loans
2,425,302

 
80,867

 
4.40
%
 
2,367,014

 
79,367

 
4.41
%
Commercial loans
560,677

 
18,260

 
4.29
%
 
460,228

 
14,817

 
4.23
%
Loans receivable (a) (b) (d)
7,662,968

 
254,475

 
4.44
%
 
7,278,211

 
245,087

 
4.50
%
Mortgage-backed securities (c)
557,846

 
8,327

 
1.99
%
 
462,474

 
6,374

 
1.84
%
Investment securities (c) (d)
367,585

 
5,366

 
1.95
%
 
325,427

 
5,662

 
2.32
%
FHLB stock
7,553

 
172

 
3.04
%
 
32,702

 
1,086

 
4.44
%
Other interest-earning deposits
201,643

 
1,440

 
0.94
%
 
57,996

 
243

 
0.55
%
Total interest-earning assets
8,797,595

 
269,780

 
4.10
%
 
8,156,810

 
258,452

 
4.23
%
Noninterest earning assets (e)
742,837

 
 
 
 
 
783,838

 
 

 
 

Total assets
$
9,540,432

 
 

 
 
 
$
8,940,648

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and shareholders’ equity:
 

 
 

 
 
 
 

 
 

 
 

Interest-bearing liabilities:
 

 
 

 
 
 
 

 
 

 
 

Savings deposits
$
1,699,455

 
2,300

 
0.18
%
 
$
1,444,302

 
2,446

 
0.23
%
Interest-bearing demand deposits
1,436,442

 
696

 
0.06
%
 
1,134,669

 
378

 
0.04
%
Money market deposit accounts
1,835,638

 
3,186

 
0.23
%
 
1,334,158

 
2,520

 
0.25
%
Time deposits
1,513,565

 
10,904

 
0.96
%
 
1,625,936

 
12,262

 
1.01
%
Borrowed funds (f)
123,168

 
161

 
0.17
%
 
743,353

 
10,213

 
1.84
%
Junior subordinated debentures
111,213

 
3,503

 
4.15
%
 
111,213

 
3,389

 
4.00
%
Total interest-bearing liabilities
6,719,481

 
20,750

 
0.41
%
 
6,393,631

 
31,208

 
0.65
%
Noninterest-bearing demand deposits (g)
1,541,845

 
 

 
 
 
1,196,737

 
 

 
 

Noninterest bearing liabilities
94,546

 
 

 
 
 
191,934

 
 

 
 

Total liabilities
8,355,872

 
 

 
 

 
7,782,302

 
 

 
 

Shareholders’ equity
1,184,560

 
 

 
 

 
1,158,346

 
 

 
 

Total liabilities and shareholders’ equity
$
9,540,432

 
 

 
 

 
$
8,940,648

 
 

 
 

Net interest income/ Interest rate spread
 

 
249,030

 
3.69
%
 
 

 
227,244

 
3.58
%
Net interest-earning assets/ Net interest margin
$
2,078,114

 
 

 
3.77
%
 
$
1,763,179

 
 

 
3.71
%
Ratio of interest-earning assets to interest-bearing liabilities
1.31X

 
 

 
 

 
1.28X

 
 

 
 

(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.
(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.
(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
(f) Average balances include FHLB borrowings and collateralized borrowings.
(g) Average cost of deposits were 0.28%, and 0.35%, respectively.
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.41% and 4.47%, respectively, Investment securities - 1.64% and 1.86%, respectively, Interest-earning assets - 4.06% and 4.19%, respectively. GAAP basis net interest rate spreads were 3.65% and 3.53%, respectively, and GAAP basis net interest margins were 3.74% and 3.67%, respectively.