Northwest Bancshares(US:NWBI)2024-08-05 20:27Financial Performance - Net interest income after provision for credit losses increased to $107,211 thousand for the quarter ended June 30, 2024, compared to $99,619 thousand for the same period in 2023, an increase of 7.99%[6] - Net income for the quarter ended June 30, 2024, was $4,747 thousand, a decrease of 85.64% compared to $33,044 thousand for the same quarter in 2023[6] - Basic earnings per share decreased to $0.04 for the quarter ended June 30, 2024, down from $0.26 in the same quarter of 2023[6] - Total comprehensive income for the quarter ended June 30, 2024, was $28,087,000, an increase of 25.5% from $22,316,000 in the same quarter of 2023[8] - For the six months ended June 30, 2024, net income was $33,910,000, down 49.1% from $66,723,000 for the same period in 2023[8] - The total comprehensive income for the six months ended June 30, 2024, was $53,318,000, a decrease of 22.3% from $68,630,000 for the same period in 2023[8] Asset and Liability Management - Total assets decreased to $14,385,553 thousand as of June 30, 2024, from $14,419,105 thousand at December 31, 2023, representing a decline of 0.23%[5] - Total liabilities decreased slightly to $12,828,955 thousand as of June 30, 2024, from $12,867,788 thousand at December 31, 2023, a decline of 0.30%[5] - Total deposits increased to $12,087,379 thousand as of June 30, 2024, from $11,979,902 thousand at December 31, 2023, marking a growth of 0.90%[5] - Total loans receivable increased to $11,354,364 thousand as of June 30, 2024, compared to $11,414,809 thousand as of December 31, 2023, reflecting a slight decrease of 0.5%[34] - Total shareholders' equity as of June 30, 2024, was $1,556,598,000, an increase from $1,511,501,000 at the end of June 30, 2023[10] Credit Quality and Losses - Provision for credit losses on loans was $2,169 thousand for the quarter ended June 30, 2024, compared to $6,010 thousand in the same quarter of 2023, indicating a decrease of 63.88%[6] - The allowance for credit losses stood at $125,070 thousand as of June 30, 2024, with a current period provision of $6,403 thousand[40] - Nonaccrual loans in Personal Banking totaled $18,264 million, with 90 days past due and accruing loans at 2,463[46] - Total loans 90 days or more past due decreased to $20,490,000 as of June 30, 2024, from $24,591,000 at December 31, 2023, reflecting improved asset quality[165] - Total nonperforming loans increased to $104,670,000 as of June 30, 2024, compared to $97,082,000 at December 31, 2023[165] Noninterest Income and Expenses - Noninterest income showed a loss of $8,849 thousand for the quarter ended June 30, 2024, compared to a gain of $29,797 thousand in the same quarter of 2023[6] - Total noninterest expense increased to $92,420 thousand for the quarter ended June 30, 2024, compared to $85,858 thousand in the same quarter of 2023, an increase of 7.63%[6] - Noninterest expense increased by $7 million, or 8%, to $54 million for the quarter ended June 30, 2024, from $48 million for the same quarter in 2023, primarily due to an increase in compensation and employee benefits[200] - For the six months ended June 30, 2024, noninterest expense increased by $9 million, or 5%, to $182 million from $173 million for the same period in 2023[202] Marketable Securities and Investments - Total marketable securities available-for-sale amounted to $1,202,354, with a fair value of $1,029,191 after accounting for gross unrealized losses of $(173,647)[21] - The company reported unrealized holding losses on marketable securities of $3,391,000 for the quarter ended June 30, 2024, compared to losses of $17,719,000 in the same quarter of 2023[8] - The company reported a fair value of $1,627,195 for available-for-sale investment securities, with total unrealized losses of $294,563[28] - The company reported a fair value of $1,418,730 for mortgage-backed securities - agency, with unrealized losses totaling $256,696[28] Loans and Financing - Personal Banking loans totaled $6,584,612 thousand as of June 30, 2024, down from $6,782,070 thousand at the end of 2023, representing a decrease of 2.9%[34] - Commercial Banking loans rose to $4,769,752 thousand as of June 30, 2024, compared to $4,632,739 thousand as of December 31, 2023, indicating an increase of 3.0%[34] - The company modified loans for borrowers in financial distress, with multiple types of concessions granted during the reporting period[53] - Total loans receivable as of June 30, 2024, amounted to $11,354,364 thousand, a decrease from $12,191,860 thousand in 2023, representing a decline of approximately 6.8%[74] Capital and Dividends - Cash dividends paid during the quarters ended June 30, 2024, and 2023 were $25 million, with a dividend payout ratio of 500.0% for June 30, 2024[163] - The company declared a cash dividend of $0.20 per share on July 18, 2024, marking the 119th consecutive quarter of cash dividends[163] - Total shareholders' equity remained stable at $1.6 billion, or $12.23 per share, with year-to-date earnings of $34 million[157] Future Outlook and Strategy - Future outlook includes a commitment to enhancing user data analytics and expanding market presence through targeted strategies and potential acquisitions[74] - The company continues to monitor and manage its loan portfolio effectively, with a strategic emphasis on reducing charge-offs and improving overall asset quality[74]