Northwest Bancshares Inc. Announces Q3 Earnings And Quarterly Dividend
October 28, 2022 at 4:40 p.m.
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The company also announced that its board of directors declared a quarterly cash dividend of $0.20 per share payable on Nov. 14 to shareholders of record as of Nov. 3. This is the 112th consecutive quarter in which the company has paid a cash dividend. Based on the market value of the Company's common stock as of Sept. 30, this represents an annualized dividend yield of approximately 5.9%.
Louis J. Torchio, president and CEO, said, "We are very pleased with the positive results in the current quarter beginning with the expansion of our net interest margin by 35 basis points as a result of both an increase in market interest rates and the deployment of our remaining excess liquidity into higher yielding interest-earning assets. The loan growth momentum seen during the second quarter carried into the current quarter with the generation of organic loan growth of approximately $241.7 million, or 2.3%, augmented by the purchase of a $67 million small business equipment finance pool. We are also pleased to report a continued favorable trend in expense management during the year with our efficiency ratio improving to 58.4% during the current quarter."
Torchio continued, "Asset quality metrics continue to improve with nonperforming and classified assets dropping to $84.4 million and $237.7 million, respectively. However, due to a deterioration in economic forecasts, we recorded a provision for credit losses of $7.7 million for the quarter, which is more consistent with our historic averages. Total delinquency continues to remain low at 0.4% of total loans and we experienced a total net recovery of $3.8 million in the current quarter primarily from the recovery of a previously charged-off commercial real estate loan."
The company also announced that its board of directors declared a quarterly cash dividend of $0.20 per share payable on Nov. 14 to shareholders of record as of Nov. 3. This is the 112th consecutive quarter in which the company has paid a cash dividend. Based on the market value of the Company's common stock as of Sept. 30, this represents an annualized dividend yield of approximately 5.9%.
Louis J. Torchio, president and CEO, said, "We are very pleased with the positive results in the current quarter beginning with the expansion of our net interest margin by 35 basis points as a result of both an increase in market interest rates and the deployment of our remaining excess liquidity into higher yielding interest-earning assets. The loan growth momentum seen during the second quarter carried into the current quarter with the generation of organic loan growth of approximately $241.7 million, or 2.3%, augmented by the purchase of a $67 million small business equipment finance pool. We are also pleased to report a continued favorable trend in expense management during the year with our efficiency ratio improving to 58.4% during the current quarter."
Torchio continued, "Asset quality metrics continue to improve with nonperforming and classified assets dropping to $84.4 million and $237.7 million, respectively. However, due to a deterioration in economic forecasts, we recorded a provision for credit losses of $7.7 million for the quarter, which is more consistent with our historic averages. Total delinquency continues to remain low at 0.4% of total loans and we experienced a total net recovery of $3.8 million in the current quarter primarily from the recovery of a previously charged-off commercial real estate loan."
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