Northwest Bancshares, Inc. Announces Second Quarter 2024 net income of $5 million, or $0.04 per diluted share

Core Viewpoint - The company reported a significant decline in net income for the quarter ended June 30, 2024, primarily due to a loss on the sale of investments and restructuring expenses, despite an increase in adjusted net operating income and strong performance in the commercial banking sector [15][17]. Financial Performance - The adjusted net operating income was $35 million, or $0.27 per diluted share, for the quarter ended June 30, 2024, representing an increase of $1 million from the same quarter last year [15]. - Net income for the same quarter was $4.7 million, or $0.04 per diluted share, a decrease of $28 million compared to the same quarter last year [15][17]. - The annualized return on average equity was 1.24% and on average assets was 0.13% for the quarter, down from 8.72% and 0.93% respectively in the same quarter last year [15][17]. Noninterest Income and Expenses - Noninterest income showed a loss of $8.8 million, significantly impacted by a $39 million loss on the sale of investment securities [17]. - Total noninterest expense increased to $92.4 million, driven by a $6 million rise in personnel expenses related to the expansion of the commercial business [17]. Loan and Deposit Growth - Average loans receivable increased by $303 million year-over-year, with a notable $631 million growth in the commercial banking portfolio [15]. - Average deposits grew by $666 million from the same quarter last year, primarily due to a $1.1 billion increase in average time deposits [15]. Securities Portfolio Restructuring - The company repositioned its securities portfolio by selling 15% of its investment securities, resulting in a pre-tax loss of $39 million [15]. - Proceeds from the sale were used to repay short-term borrowings, and the company expects to recover the loss over the next three years [15]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.20 per share, marking the 119th consecutive quarter of dividend payments [15].