Northwest Bancshares(US:NWBI)2025-02-25 21:07Financial Position - Total assets as of December 31, 2024, were $14.41 billion, slightly down from $14.42 billion in 2023, reflecting a decrease of about 0.1%[501]. - Total liabilities decreased to $12.81 billion in 2024 from $12.87 billion in 2023, representing a reduction of approximately 0.4%[501]. - Deposits increased to $12.14 billion in 2024, up from $11.98 billion in 2023, marking an increase of about 1.4%[501]. - Cash and cash equivalents rose significantly to $288.4 million in 2024 from $122.3 million in 2023, showing an increase of approximately 135.8%[501]. - Marketable securities available-for-sale increased to $1.11 billion in 2024 from $1.04 billion in 2023, reflecting a growth of about 6.5%[501]. - Loans held for investment decreased to $11.18 billion in 2024 from $11.41 billion in 2023, a decline of approximately 2.0%[501]. Interest Rate Sensitivity - Total rate-sensitive assets amount to $13,163,845,000, with $5,636,509,000 maturing within 1 year[1]. - Total rate-sensitive liabilities are $9,999,684,000, with $5,606,583,000 maturing within 1 year[1]. - Cumulative interest sensitivity gap as a percentage of total assets is 21.91%[1]. - Estimated net interest income may decrease by no more than 5%, 10%, and 15% for parallel shifts of 100 bps, 200 bps, and 300 bps, respectively[4]. - Estimated net income may decrease by no more than 10%, 20%, and 30% for parallel shifts of 100 bps, 200 bps, and 300 bps, respectively[5]. - Market value of equity may not decrease by more than 15%, 30%, and 35% for parallel shifts of 100 bps, 200 bps, and 300 bps, respectively[6]. - Projected percentage decrease in net interest income for a 300 bps increase is (3.7)% and for a 300 bps decrease is (6.4)%[8]. - Projected percentage decrease in net income for a 300 bps increase is (8.8)% and for a 300 bps decrease is (15.4)%[8]. Credit Losses and Allowances - The allowance for credit losses for loans held for investment was $116.8 million as of December 31, 2024, down from $125.2 million in 2023, indicating a decrease of approximately 6.4%[493]. - The total allowance for credit losses as of December 31, 2024, is $116.819 million, down from $125.243 million as of December 31, 2023, representing a decrease of approximately 6.4%[620]. - Personal Banking's total allowance for credit losses decreased from $51.706 million in 2023 to $43.464 million in 2024, a reduction of about 16%[625]. - Commercial Banking's total allowance for credit losses remained relatively stable, decreasing slightly from $73.537 million in 2023 to $73.355 million in 2024[625]. - Provision for credit losses on loans increased to $27,679 thousand in 2024 from $18,664 thousand in 2023[504]. - The company did not recognize an allowance for credit losses in its investment portfolio for the years ended December 31, 2024, 2023, and 2022[606]. Income and Expenses - Total interest income for 2024 increased to $669,196 thousand, up 13.8% from $587,922 thousand in 2023[504]. - Net interest income after provision for credit losses was $411,073 thousand in 2024, slightly down from $412,809 thousand in 2023[504]. - Noninterest income decreased to $87,010 thousand in 2024, a decline of 23.6% compared to $113,823 thousand in 2023[504]. - Total noninterest expense rose to $368,537 thousand in 2024, an increase of 4.8% from $351,554 thousand in 2023[504]. - Net income for 2024 was $100,278 thousand, down 25.5% from $134,957 thousand in 2023[506]. - Basic earnings per share decreased to $0.79 in 2024 from $1.06 in 2023[504]. - Total comprehensive income for 2024 was $138,856 thousand, compared to $156,623 thousand in 2023[506]. Marketable Securities - Total marketable securities available-for-sale amounted to $1,108,944 million as of December 31, 2024, with gross unrealized losses of $170,918 million[603]. - The Company recognized a total of $750,586 million in marketable securities held-to-maturity as of December 31, 2024, with gross unrealized losses of $112,639 million[603]. - The total residential mortgage-backed securities available-for-sale as of December 31, 2024, had an amortized cost of $1,139,018 million and a fair value of $988,707 million[607]. - The company sold marketable securities classified as available-for-sale for $276 million in 2024, incurring gross realized losses of $39 million[606]. Loans and Nonaccruals - The company reported a total loans receivable of $11,180,014 million as of December 31, 2024, with a net total of $11,063,195 million after accounting for an allowance for credit losses of $116,819 million[614]. - Nonaccrual loans as of December 31, 2024, total 61,401, compared to 94,384 as of December 31, 2023, reflecting a significant reduction of about 34.9%[625]. - The company reported a total of $656 thousand in loans that are 90 days past due and accruing as of December 31, 2024, down from $2.698 million in 2023[625]. - The total loans modified for borrowers in financial distress included a combination of term extensions and interest rate reductions, with a total of $1,733,000 in 2024[634]. Operational and Regulatory Aspects - Management concluded that the Company's internal control over financial reporting is effective as of December 31, 2024[11]. - The consolidated financial statements present fairly the financial position of the company as of December 31, 2024, in conformity with U.S. generally accepted accounting principles[488]. - The company has maintained a consistent approach to evaluating expected credit losses, utilizing a twenty-four-month reasonable and supportable forecast period[496]. - The company has 141 banking locations across Pennsylvania, New York, Ohio, and Indiana, focusing on personal and commercial banking products[518]. - The company adopted ASU No. 2023-02 effective January 1, 2024, which did not have a material impact on its financial statements[594].