Northwest Bancshares(US:NWBI)2024-07-23 15:03Financial Highlights - Total assets reached $144 billion[2] - Total loans amounted to $114 billion[2] - Total deposits were $121 billion[2] - Return on average assets (ROAA) was 013%[2] - Return on average equity (ROAE) was 124%[2] - Diluted earnings per share (EPS) stood at $004[2] - Net interest margin (NIM) was 320%[2] Securities Portfolio Restructure - $314 million par value of securities were sold (15% of portfolio) at a pre-tax loss of $394 million[5] - Proceeds from the sale were $276 million[5] - $258 million has been reinvested into available-for-sale (AFS) securities at a yield of 600%[5] - The expected yield on fully reinvested funds is 617%[5] Loan Portfolio - Average loans increased by 02% quarter-over-quarter[8] - Average commercial loans increased by $55 million compared to the first quarter of 2024, a 32% increase[8] - Residential and home equity portfolios declined by 15% and 17% respectively[8] - Total loans grew by $24 million or 02%[71] Deposit Balances - Average total deposits grew by 16% quarter-over-quarter and 58% versus the second quarter of 2023[76] - Average balances in demand deposits were $2596 million, a 11% increase quarter-over-quarter but an 80% decrease year-over-year[12] - Time deposits increased by $135 million quarter-over-quarter (48%) and $1067 million year-over-year (604%)[12] Net Interest Income and Margin - Net interest income increased by 3%[17] - Net interest margin (NIM) expanded to 320% from 310% in the previous quarter[17] Non-Interest Income - There was a loss of $88 million, including a $394 million loss on the sale of investment securities[20] - Excluding the loss from the sale of securities, non-interest income increased by $26 million quarter-over-quarter, a 9% increase[20] - Gain on sale of SBA loans grew by 67% compared to the previous quarter[20] Non-Interest Expense - Total non-interest expense increased by 27%, or $2396 thousand[23] - Compensation and employee benefits increased by 39%, or $1991 thousand[23] - Merger, asset disposition, and restructuring expenses increased by 1005%, or $960 thousand[23] Credit Quality - Overall allowance for loan losses (ALLL) coverage remained strong at 110%[25] - Net charge-offs of 7 basis points reflect increased recoveries in the quarter[25]