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Northwest Bancshares(NWBI) - 2024 Q1 - Quarterly Results
NWBINorthwest Bancshares(NWBI)2024-04-22 13:04

Financial Performance - Net income for Q1 2024 was 29million,or29 million, or 0.23 per diluted share, a decrease of 13% from 34million,or34 million, or 0.26 per diluted share in Q1 2023[3]. - Net income for Q1 2024 was 29,163thousand,downfrom29,163 thousand, down from 33,679 thousand in Q1 2023, representing a decline of 13.5%[24]. - Net income for the quarter ended March 31, 2024, was 29,163thousand,slightlyupfrom29,163 thousand, slightly up from 29,014 thousand in the previous quarter[31]. - Basic earnings per share remained stable at 0.23forQ12024,unchangedfromQ42023[24].−TheannualizedreturnonaverageequityforQ12024was7.570.23 for Q1 2024, unchanged from Q4 2023[24]. - The annualized return on average equity for Q1 2024 was 7.57%, down from 9.11% in Q1 2023[27]. - The annualized return on average tangible common equity was 10.08% for the quarter ended March 31, 2024, down from 10.28% in the previous quarter[31]. - The efficiency ratio for Q1 2024 was 68.62%, compared to 64.10% in Q1 2023, indicating a decrease in operational efficiency[24]. Income and Expenses - Interest income rose by 18.7% to 160.24 million, while interest expense surged by 153.6% to 57.00million,leadingtoanetinterestmargindecreaseto3.1057.00 million, leading to a net interest margin decrease to 3.10%[11][12]. - Noninterest income increased by 16.7% to 27.96 million, primarily due to higher service charges and fees, and a significant gain on the sale of SBA loans[14][15]. - Total noninterest expense increased by 2.9% to 90.02million,drivenbyariseinpersonnelexpensesrelatedtotheexpansionofthecommercialbusiness[16].−TotalnoninterestincomeforQ12024was90.02 million, driven by a rise in personnel expenses related to the expansion of the commercial business[16]. - Total noninterest income for Q1 2024 was 29,169 thousand, compared to 23,969thousandinQ12023,markinganincreaseof21.523,969 thousand in Q1 2023, marking an increase of 21.5%[24]. Loans and Deposits - Average loans receivable increased by 4.2% to 11.35 billion, driven by a 553milliongrowthincommercialloans[7][8].−TotalloansasofMarch31,2024,amountedto553 million growth in commercial loans[7][8]. - Total loans as of March 31, 2024, amounted to 11,501,246, an increase from 11,414,809asofDecember31,2023,representingagrowthof0.7611,414,809 as of December 31, 2023, representing a growth of 0.76%[51]. - Total deposits rose to 12,071,644 thousand, an increase of 4.63% from 11,537,179thousandinthesamequarterlastyear[22].−Averagedepositsgrewby4.211,537,179 thousand in the same quarter last year[22]. - Average deposits grew by 4.2% to 11.89 billion, with a 1.404billionincreaseinaveragetimedeposits[9].−Theaveragedepositaccountbalancewas1.404 billion increase in average time deposits[9]. - The average deposit account balance was 17,000 as of March 31, 2024[35]. Credit Quality - The provision for credit losses decreased by 31.2% to 3.44million,reflectingimprovementsineconomicforecastsandadeclineinreservesforunfundedcommitments[13].−Thecompanyreportedaprovisionforcreditlossesof3.44 million, reflecting improvements in economic forecasts and a decline in reserves for unfunded commitments[13]. - The company reported a provision for credit losses of 4,234 thousand for Q1 2024, compared to 4,870thousandinQ12023,indicatingimprovedcreditquality[24].−Theallowanceforcreditlossestototalloanswas1.094,870 thousand in Q1 2023, indicating improved credit quality[24]. - The allowance for credit losses to total loans was 1.09% as of March 31, 2024, indicating a slight decrease from 1.10% in the previous quarter[49]. - Nonaccrual loans totaled 95,060,000 as of March 31, 2024, reflecting an increase from 94,384,000inthepreviousquarter[49].−Thetotaldelinquentloansdecreasedto94,384,000 in the previous quarter[49]. - The total delinquent loans decreased to 90,308, or 0.8% of total loans, as of March 31, 2024, compared to 93,270,or0.893,270, or 0.8%, as of December 31, 2023[54]. Capital and Assets - Total assets increased to 14,510,263 thousand as of March 31, 2024, compared to 14,193,816thousandayearearlier,reflectingagrowthof2.2314,193,816 thousand a year earlier, reflecting a growth of 2.23%[22]. - Total shareholders' equity increased to 1,552,449 thousand as of March 31, 2024, compared to 1,513,275thousandayearearlier,reflectingagrowthof2.581,513,275 thousand a year earlier, reflecting a growth of 2.58%[28]. - The total capital to risk-weighted assets ratio was 15.951% for Northwest Bancshares, Inc. as of March 31, 2024, exceeding the minimum requirement of 10.500%[39]. Securities and Investments - The company plans to reposition its securities portfolio by liquidating up to 15% of lower-yielding securities, expecting a yield pickup of 375-400 basis points[5][6]. - As of March 31, 2024, total marketable securities available-for-sale amounted to 1,298,108,000, with gross unrealized holding losses of 204,300,000[42].−Thetotalmarketablesecuritiesheld−to−maturitywerevaluedat204,300,000[42]. - The total marketable securities held-to-maturity were valued at 801,107,000, with gross unrealized holding losses of 120,755,000[42].Borrowings−Averageborrowedfundsdecreasedsignificantlyby36.5120,755,000[42]. Borrowings - Average borrowed funds decreased significantly by 36.5% to 469.70 million, attributed to a strategic pay down of wholesale borrowings[10]. - The total borrowed funds as of March 31, 2024, were 644,698,000,withanaverageinterestrateof5.58644,698,000, with an average interest rate of 5.58%[45]. - The company had 3.3 billion of additional borrowing capacity available with the FHLB of Pittsburgh as of March 31, 2024[45]. Future Outlook - The company plans to continue focusing on expanding its commercial loan portfolio and enhancing its interest-earning asset base in the upcoming quarters[62].