Northwest Bancshares(NWBI) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for the quarter ended June 30, 2024, was $4,747 thousand, a decline of 83.7% compared to $33,044 thousand in the same quarter last year[17]. - Net income for the quarter ended June 30, 2024, was $29,163 million, slightly up from $33,044 million in the same quarter last year, showing a decrease of 11.7%[34]. - Adjusted net operating income (non-GAAP) for the quarter was $34,503 thousand, up from $29,851 thousand year-over-year[38]. - Net income for the quarter ended June 30, 2024, was $5 million, a decrease of $28 million compared to the same quarter last year[66]. Interest Income and Expense - Total interest income for the quarter ended June 30, 2024, was $166,854 million, an increase from $143,996 million in the same quarter last year, representing a growth of 15.8%[34]. - Total interest expense for the quarter ended June 30, 2024, was $60,013 million, compared to $35,447 million in the same quarter last year, reflecting an increase of 69.4%[34]. - Net interest income was reported at $107,724 million with an interest rate spread of 2.58%[62]. - The net interest margin expanded by 10 basis points to 3.20%[68]. Deposits and Loans - Total deposits increased to $11,979,902, up from $11,789,882 in the previous quarter, representing a growth of 1.6%[5]. - Total loans receivable decreased slightly to $11,354,364 thousand from $11,414,809 thousand, a decline of 0.5%[31]. - Total deposits as of June 30, 2024, amounted to $12,087,379, with an average deposit account balance of $17,000[44]. - Average loans receivable increased by $303 million year-over-year, reaching $11,368,749, driven by a $631 million growth in the commercial banking portfolio[46]. Non-Interest Income and Expenses - Noninterest income showed a loss of $8,849 thousand for the quarter, primarily due to a $39,413 thousand loss on the sale of investment securities[14]. - Total noninterest expense for the quarter ended June 30, 2024, was $92,420 million, up from $85,858 million in the same quarter last year, indicating an increase of 7.5%[34]. - Noninterest expense, excluding amortization and merger, asset disposition and restructuring expenses was $89,870 for the latest quarter, up from $88,368 in the previous quarter[1]. Asset Quality - Total nonaccrual loans increased to $102,159 thousand as of June 30, 2024, up from $95,060 thousand in the previous quarter, representing an increase of 1.15%[11]. - Nonperforming loans to total loans ratio rose to 0.92% from 0.85% in the previous quarter, indicating a slight deterioration in loan quality[11]. - The allowance for credit losses to total loans remained stable at 1.10% for the quarter ended June 30, 2024[11]. - Classified loans slightly increased to $257 million, or 2.26% of total loans, compared to $214 million, or 1.90% a year earlier[13]. Capital Ratios - Total capital to risk-weighted assets for Northwest Bancshares, Inc. is $1,784,604, representing a ratio of 16.674%[25]. - Tier 1 capital to risk-weighted assets for Northwest Bancshares, Inc. is $1,536,552, with a ratio of 14.356%[25]. - Common equity tier 1 capital to risk-weighted assets for Northwest Bancshares, Inc. is $1,410,837, equating to a ratio of 13.182%[25]. - Tier 1 capital (leverage) to average assets for Northwest Bancshares, Inc. is 10.654%[25]. Employee and Office Metrics - Full-time equivalent employees decreased to 1,991 from 2,098, a reduction of 5.1%[31]. - The number of banking offices decreased to 139 from 142, indicating a contraction in physical presence[31]. Market Performance - The closing market price per share decreased to $11.55 from $12.48, a decline of 7.4%[31]. - Book value per share rose to $12.23 from $12.20, indicating a slight increase[31]. - Tangible book value per share increased to $9.20 from $8.84 year-over-year[38]. Efficiency Metrics - The efficiency ratio for the quarter ended June 30, 2024, was 68.62%, compared to 62.06% in the same quarter last year, indicating a decline in operational efficiency[34]. - The efficiency ratio, excluding certain losses and gains, improved to 65.41% from 67.35% in the previous quarter[41].