Northwest Bancshares, Inc. [NWBI] Filings

10-Q 1 nwbi-20230930.htm 10-Q nwbi-20230930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2023

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number 001-34582

NORTHWEST BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Maryland

27-0950358

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

3 Easton Oval

Suite 500

Columbus

Ohio

43219

(Address of Principal Executive Offices)

(Zip Code)

(814) 726-2140

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 Par Value

NWBI

NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

☒ Large accelerated filer ☐ Accelerated filer

☐ Non-accelerated filer ☐ Smaller reporting company

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Common Stock ($0.01 par value), 127,104,458 shares outstanding as of October 31, 2023.

Table of Contents

NORTHWEST BANCSHARES, INC.

Table of Contents

PART I

FINANCIAL INFORMATION

Item 1.

Financial Statements

Consolidated Statements of Financial Condition at Sep tember 30, 2023 and December 31, 2022 (Unaudited)

Consolidated Statements of Income for the quarter and nine months ended September 30, 2023 and 2022 (Unaudited)

Consolidated Statements of Comprehensive Income/(Loss) for the quarter and nine months ended Septem ber 30, 2023 and 2022 (Unaudited)

Consolidated Statements of Changes in Shareholders’ Equity for the quarter and nine months ended September 30, 2023 and 2022 (Unaudited)

Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 (Unaudited)

Notes to Consolidated Financial Statements (Unaudited)

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Item 4.

Controls and Procedures

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities

Item 4.

Mine Safety Disclosures

Item 1. FINANCIAL STATEMENTS

NORTHWEST BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(in thousands, except share data)


	September 30, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	161,995	139,365


Marketable securities available-for-sale (amortized cost of $1,262,080 and $1,431,728, respectively)	1,010,076		1,218,108
Marketable securities held-to-maturity (fair value of $682,681 and $751,384, respectively)	830,106		881,249
Total cash and cash equivalents and marketable securities	2,002,177		2,238,722


Loans held-for-sale	10,592		9,913








Loans held for investment	11,299,681		10,910,539

Allowance for credit losses	(124,841)		(118,036)
Loans receivable, net	11,185,432		10,802,416


FHLB stock, at cost	40,404		40,143
Accrued interest receivable	42,624		35,528
Real estate owned, net	363		413
Premises and equipment, net	138,041		145,909
Bank-owned life insurance	250,502		255,062
Goodwill	380,997		380,997
Other intangible assets, net	6,013		8,560
Other assets	315,648		205,574
Total assets	$	14,362,201	14,113,324

Liabilities and shareholders’ equity
Liabilities:
Noninterest-bearing demand deposits	$	2,774,291	2,993,243
Interest-bearing demand deposits	2,598,080		2,686,431
Money market deposit accounts	2,042,813		2,457,569
Savings deposits	2,116,360		2,275,020
Time deposits	2,258,338		1,052,285
Total deposits	11,789,882		11,464,548


Borrowed funds	604,587		681,166
Subordinated debt	114,102		113,840
Junior subordinated debentures	129,509		129,314
Advances by borrowers for taxes and insurance	27,653		47,613
Accrued interest payable	7,915		3,231
Other liabilities	190,122		182,126
Total liabilities	12,863,770		12,621,838

Shareholders’ equity:
Preferred stock, $0.01 par value: 50,000,000 authorized, no shares issued	—		—
Common stock, $0.01 par value: 500,000,000 shares authorized, 127,101,349 and 127,028,848 shares issued and outstanding, respectively	1,271		1,270
Additional paid-in capital	1,023,591		1,019,647
Retained earnings	671,092		641,727

Accumulated other comprehensive loss	(197,523)		(171,158)
Total shareholders’ equity	1,498,431		1,491,486
Total liabilities and shareholders’ equity	$	14,362,201	14,113,324

See accompanying notes to unaudited Consolidated Financial Statements.

Table of Contents

NORTHWEST BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except share data)


	Quarter ended September 30,			Nine months ended September 30,
	2023		2022	2023	2022
Interest income:
Loans receivable	$	140,667	106,943	397,136	290,691
Mortgage-backed securities	8,072		8,683	24,935	22,201
Taxable investment securities	786		838	2,472	2,230
Tax-free investment securities	491		709	1,858	2,066
FHLB stock dividends	668		148	2,202	311
Interest-earning deposits	914		1,295	1,931	3,446
Total interest income	151,598		118,616	430,534	320,945
Interest expense:
Deposits	31,688		3,157	64,743	10,249
Borrowed funds	11,542		2,710	36,410	7,059
Total interest expense	43,230		5,867	101,153	17,308
Net interest income	108,368		112,749	329,381	303,637
Provision for credit losses - loans	3,983		7,689	14,863	8,837
Provision for credit losses - unfunded commitments	(2,981)		3,585	65	8,577
Net interest income after provision for credit losses	107,366		101,475	314,453	286,223
Noninterest income:
Loss on sale of investments	—		(2)	(8,306)	(7)
Gain on sale of mortgage servicing rights	—		—	8,305	—
Gain on sale of SBA loans	301		—	1,412	—

Service charges and fees	15,270		14,323	43,292	41,063


Trust and other financial services income	7,085		6,650	20,400	21,123

Gain on real estate owned, net	29		290	922	552
Income from bank-owned life insurance	4,561		1,475	7,134	5,466
Mortgage banking income	632		766	2,184	4,388
Other operating income	3,010		3,301	9,311	10,406
Total noninterest income	30,888		26,803	84,654	82,991
Noninterest expense:
Compensation and employee benefits	51,243		46,711	145,497	141,701
Premises and occupancy costs	7,052		7,171	22,102	22,248
Office operations	3,398		3,229	9,208	9,774
Collections expense	551		322	1,367	1,245
Processing expenses	14,672		13,416	43,670	38,911
Marketing expenses	2,379		2,147	8,127	6,322
Federal deposit insurance premiums	2,341		1,200	6,628	3,459
Professional services	3,002		3,363	11,564	9,269
Amortization of intangible assets	795		1,047	2,546	3,345
Real estate owned expense	141		61	405	170
Merger, asset disposition and restructuring expense	—		—	4,395	1,374

Other expenses	1,996		321	5,369	2,929
Total noninterest expense	87,570		78,988	260,878	240,747
Income before income taxes	50,684		49,290	138,229	128,467
Federal and state income taxes expense	11,464		11,986	32,286	29,450
Net income	$	39,220	37,304	105,943	99,017
Basic earnings per share	$	0.31	0.29	0.83	0.78
Diluted earnings per share	$	0.31	0.29	0.83	0.78

See accompanying notes to unaudited Consolidated Financial Statements.

Table of Contents

NORTHWEST BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited)

(in thousands)


	Quarter ended September 30,			Nine months ended September 30,
	2023		2022	2023	2022
Net income	$	39,220	37,304	105,943	99,017
Other comprehensive loss net of tax:
Net unrealized holding (losses)/gains on marketable securities:
Unrealized holding losses, net of tax of $9,140, $14,705, $9,603 and $45,555, respectively	(29,715)		(48,387)	(34,417)	(153,124)
Reclassification adjustment for losses/(gains) included in net income, net of tax of $0, $0, ($1,731) and $0, respectively	—		—	5,636	(2)
Net unrealized holding losses on marketable securities	(29,715)		(48,387)	(28,781)	(153,126)

Change in fair value of interest rate swaps, net of tax of ($533), $0, ($1,041) and $0, respectively	1,825		—	3,562	—


Defined benefit plan:
Actuarial reclassification adjustments for prior period service costs and actuarial gains included in net income, net of tax of $152, $50, $456 and $151, respectively	(382)		(131)	(1,146)	(393)



Other comprehensive loss	(28,272)		(48,518)	(26,365)	(153,519)

Total comprehensive income/(loss)	$	10,948	(11,214)	79,578	(54,502)

See accompanying notes to unaudited Consolidated Financial Statements.

Table of Contents

NORTHWEST BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(in thousands, expect share data)


				Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Total shareholders’ equity
	Common stock
Quarter ended September 30, 2023	Shares	Amount
Beginning balance at June 30, 2023	127,088,963	$	1,271	1,022,189	657,292	(169,251)	1,511,501

Comprehensive income:
Net income	—	—		—	39,220	—	39,220

Other comprehensive loss, net of tax of $8,759	—	—		—	—	(28,272)	(28,272)

Total comprehensive income/(loss)	—	—		—	39,220	(28,272)	10,948



Exercise of stock options	11,523	—		112	—	—	112

Stock-based compensation expense	1,779	—		1,290	—	—	1,290



Stock-based compensation forfeited	(916)	—		—	—	—	—

Dividends paid ($0.20 per share)	—	—		—	(25,420)	—	(25,420)

Ending balance at September 30, 2023	127,101,349	$	1,271	1,023,591	671,092	(197,523)	1,498,431


				Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Total shareholders’ equity
	Common stock
Quarter ended September 30, 2022	Shares	Amount
Beginning balance at June 30, 2022	126,881,766	$	1,269	1,015,349	620,551	(142,630)	1,494,539

Comprehensive income:
Net income	—	—		—	37,304	—	37,304

Other comprehensive loss, net of tax of $14,755	—	—		—	—	(48,518)	(48,518)

Total comprehensive income/(loss)	—	—		—	37,304	(48,518)	(11,214)

Exercise of stock options	73,472	—		897	—	—	897

Stock-based compensation expense	—	—		944	—	—	944



Stock-based compensation forfeited	(33,249)	—		(1)	—	—	(1)



Dividends paid ($0.20 per share)	—	—		—	(25,379)	—	(25,379)

Ending balance at September 30, 2022	126,921,989	$	1,269	1,017,189	632,476	(191,148)	1,459,786

See accompanying notes to unaudited Consolidated Financial Statements.

Table of Contents

NORTHWEST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(in thousands, expect share data)


				Additional paid-in capital	Retained earnings	Accumulated other comprehensive income/(loss)	Total shareholders’ equity
	Common stock
Nine months ended September 30, 2023	Shares	Amount
Beginning balance at December 31, 2022	127,028,848	$	1,270	1,019,647	641,727	(171,158)	1,491,486

Comprehensive income:
Net income	—	—		—	105,943	—	105,943

Other comprehensive loss, net of tax of $7,287	—	—		—	—	(26,365)	(26,365)

Total comprehensive income	—	—		—	105,943	(26,365)	79,578



Adoption of ASU No. 2022-02	—	—		—	(329)	—	(329)

Exercise of stock options	53,207	1		609	—	—	610

Stock-based compensation expense	75,554	1		3,334	—	—	3,335





Stock-based compensation forfeited	(56,260)	(1)		1	—	—	—

Dividends paid ($0.60 per share)	—	—		—	(76,249)	—	(76,249)

Ending balance at September 30, 2023	127,101,349	$	1,271	1,023,591	671,092	(197,523)	1,498,431


				Additional paid-in capital	Retained earnings	Accumulated other comprehensive income/(loss)	Total shareholders’ equity
	Common stock
Nine months ended September 30, 2022	Shares	Amount
Beginning balance at December 31, 2021	126,612,183	$	1,266	1,010,405	609,529	(37,629)	1,583,571

Comprehensive income:
Net income	—	—		—	99,017	—	99,017

Other comprehensive loss, net of tax of $45,706	—	—		—	—	(153,519)	(153,519)

Total comprehensive income/(loss)	—	—		—	99,017	(153,519)	(54,502)

Exercise of stock options	314,880	2		3,719	—	—	3,721

Stock-based compensation expense	75,377	2		3,065	—	—

Northwest Bancshares, Inc. [NWBI] Filings
10-Q	[2023-11-03]
10-Q	[2023-08-04]
10-Q	[2023-05-05]
10-K	[2023-02-24]
10-Q	[2022-11-04]
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-02-25]
10-Q	[2021-11-04]
10-Q	[2021-08-05]
10-Q	[2021-05-06]
10-K	[2021-02-26]
10-Q	[2020-11-06]
10-Q	[2020-08-07]
10-Q	[2020-05-11]
10-K	[2020-03-02]
10-Q	[2019-11-08]
10-Q	[2019-08-08]
10-Q	[2019-05-09]
10-K	[2019-03-01]
10-Q	[2018-11-08]
10-Q	[2018-08-08]
10-Q	[2018-05-10]
10-K	[2018-03-01]
10-Q	[2017-11-09]
10-Q	[2017-08-09]
10-Q	[2017-05-10]
10-K	[2017-03-01]
10-Q	[2016-11-09]
10-Q	[2016-08-09]
10-Q	[2016-05-10]
10-K	[2016-02-29]
10-Q	[2015-11-09]
10-Q	[2015-08-10]
10-Q	[2015-05-11]
10-K	[2015-02-27]
10-Q	[2014-11-07]
10-Q	[2014-08-08]
10-Q	[2014-05-09]
10-K	[2014-02-28]
10-Q	[2013-11-08]
10-Q	[2013-08-09]
10-Q	[2013-05-10]
10-K	[2013-03-01]
10-Q	[2012-11-05]
10-Q	[2012-08-03]
10-Q	[2012-05-08]
10-K	[2012-02-29]