Northwest Bancshares, Inc. Announces Third Quarter 2024 net income of $34 million, or $0.26 per diluted share
Net interest margin expands 13 basis points to 3.33%, inclusive of 4bps from an interest recovery
Average deposits grew $10 million while cost of funds remained stable
Noninterest expense declines $2 million due to disciplined expense management
120th consecutive quarterly dividend of $0.20 per share declared
COLUMBUS, Ohio, Oct. 29, 2024 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NASDAQ:NWBI) announced net income for the quarter ended September 30, 2024 of $34 million, or $0.26 per diluted share. This represents a decrease of $5 million compared to the same quarter last year, when net income was $39 million, or $0.31 per diluted share, and an increase of $29 million compared to the prior quarter, when net income was $5 million, or $0.04 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended September 30, 2024 were 8.50% and 0.93% compared to 10.27% and 1.08% for the same quarter last year and 1.24% and 0.13% from the prior quarter.
Compared to adjusted net operating income (non-GAAP) of $35 million, or $0.27, per diluted share in the prior quarter, adjusted net operating income (non-GAAP) decreased by $1 million to $34 million, or $0.26, per diluted share for the quarter ended September 30, 2024. This decrease was driven by an increase in provision expense which was $5 million for the quarter ended September 30, 2024 compared to $(0.4) million for the quarter ended June 30, 2024. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended September 30, 2024 were 8.51% and 0.93% compared to 9.00% and 0.96% for prior quarter.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on November 18, 2024 to shareholders of record as of November 8, 2024. This is the 120th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of September 30, 2024, this represents an annualized dividend yield of approximately 6.0%.
Louis J. Torchio, President and CEO, added, "Our performance this quarter demonstrates the strength and resilience of our business model. We've delivered solid results that underscore our expanding earnings power, driven in large part by improvements in our net interest margin. This positive trajectory reflects our team's dedication to operational excellence and strategic growth initiatives."
"As we look ahead, we remain committed to creating long-term value for our shareholders. I'm pleased to announce that for the 120th consecutive quarter, we will be returning our earnings to our shareholders through a $0.20 per share dividend. This consistency in shareholder returns is a testament to our financial stability, performance and our unwavering focus on delivering sustainable growth. We enter the next quarter with confidence, buoyed by our strong performance and the ongoing optimization of our business operations. Our team remains focused on capitalizing on market opportunities while maintaining prudent risk management practices. Northwest is well-positioned to continue driving value for our shareholders, clients and communities in the quarters to come."
Balance Sheet Highlights
Dollars in thousands
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Average loans receivable
$ 11,223,602
11,368,749
11,190,959
(1.3) %
0.3 %
Average investments
1,998,855
2,021,347
2,117,135
(1.1) %
(5.6) %
Average deposits
12,096,811
12,086,362
11,719,866
0.1 %
3.2 %
Average borrowed funds
220,677
323,191
643,518
(31.7) %
(65.7) %
Average loans receivable increased $33 million from the quarter ended September 30, 2023 driven by our commercial banking portfolio, which grew by $456 million in total, including a $372 million increase in our commercial and industrial portfolio as we have continued to build-out our commercial lending verticals. This was offset by a decline in our personal banking portfolio, which decreased by $423 million as cash flows from this portfolio were reinvested in our commercial portfolios. Compared to the second quarter of 2024, average loans receivable decreased by $145 million. Growth was muted in the quarter as we continue to reinvest cash flows from our personal banking portfolio and focus on profitability and credit discipline.
Average investments declined $118 million from the quarter ended September 30, 2023 and $22 million from the quarter ended June 30, 2024. The decline from the prior year was driven by the investment portfolio restructure which occurred in the second quarter and from lack of reinvestment of cash flow over the past year. The decline in average investments from the prior quarter is expected to be temporary as current quarter purchases occurred later in the quarter. This is evident as ending balances increased $28 million from the prior quarter end.
Average deposits grew $377 million from the quarter ended September 30, 2023, driven by a $666 million increase in our average time deposits as we competitively positioned our deposit products over the last year. This increase was partially offset by a decrease in money market balances as customers shifted balances into higher yielding time deposit accounts. Compared to the second quarter of 2024, average deposits grew $10 million, driven by a $12 million increase in our average interest-bearing checking deposits. This increase was partially offset by a decrease in time deposits.
Average borrowings saw a significant reduction of $423 million compared to the quarter end September 30, 2023 and $103 million compared to the quarter ended June 30, 2024. The decrease in average borrowings is primarily attributable to the strategic pay-down of wholesale borrowings. This decrease was made possible by the restructuring of our investment portfolio as well as a substantial increase in cash reserves resulting from the notable rise in the average balance of deposits noted above.
Income Statement Highlights
Dollars in thousands
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Interest income
$ 171,381
166,854
151,598
2.7 %
13.0 %
Interest expense
60,079
60,013
43,230
0.1 %
39.0 %
Net interest income
$ 111,302
106,841
108,368
4.2 %
2.7 %
Net interest margin
3.33 %
3.20 %
3.23 %
Compared to the quarter ended September 30, 2023, net interest income increased $3 million and net interest margin increased to 3.33% from 3.23% for the quarter ended September 30, 2023. This increase in net interest income resulted primarily from:
A $20 million increase in interest income that was the result of cash and marketable securities being redeployed into higher yielding loans. Driven by higher market interest rates, the average yield on loans improved to 5.57% for the quarter ended September 30, 2024 from 5.01% for the quarter ended September 30, 2023. This increase includes a one-time interest recovery of $1.3 million on a commercial loan payoff. Excluding this interest recovery, the adjusted yield on loans for the quarter ended September 30, 2024 was 5.53% and the adjusted net interest margin was 3.29%
A $17 million increase in interest expense as the result of higher costs of deposits due to the higher interest rate environment and competitive pressure for liquidity. The cost of interest-bearing liabilities increased to 2.39% for the quarter ended September 30, 2024 from 1.74% for the quarter ended September 30, 2023.
Compared to the quarter ended June 30, 2024, net interest income increased $4 million and net interest margin increased to 3.33% for the quarter ended September 30, 2024 from 3.20% for the quarter ended June 30, 2024. This increase in net interest income resulted from the following:
A $5 million increase in interest income driven by higher interest income on loans receivable and investments as average yield increased compared to the prior quarter. The average yield on loans improved to 5.57% from 5.47% and average investment yields increased to 2.48% from 2.13% for the quarter ended June 30, 2024.
Dollars in thousands
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Provision for credit losses - loans
$ 5,727
2,169
3,983
164.0 %
43.8 %
Provision for credit losses - unfunded commitments
(852)
(2,539)
(2,981)
(66.4) %
(71.4) %
Total provision for credit losses expense
$ 4,875
(370)
1,002
(1417.6) %
386.5 %
The total provision for credit losses for the quarter ended September 30, 2024 was $4.9 million primarily driven by growth within our commercial lending portfolio and changes in the economic forecasts coupled with a decline in our reserves for unfunded commitments in the current period. This decline is based on the timing of origination and funding of commercial construction loans and lines of credit.
Additionally, the Company saw an increase in classified loans to $320 million, or 2.83% of total loans, at September 30, 2024 from $209 million, or 1.84% of total loans, at September 30, 2023 and $257 million, or 2.26% of total loans, at June 30, 2024. The primary driver of the increase over the past year and quarter is reflective of the Company's exposure to the Long Term Healthcare segment and the challenges a few operators have experienced post Covid.
Dollars in thousands
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Noninterest income:
Loss on sale of investments
$ ,
(39,413)
—
NA
NA
Gain on sale of SBA loans
667
1,457
301
(54.2) %
121.6 %
Service charges and fees
15,932
15,527
15,270
2.6 %
4.3 %
Trust and other financial services income
7,924
7,566
7,085
4.7 %
11.8 %
Gain on real estate owned, net
105
487
29
(78.4) %
262.1 %
Income from bank-owned life insurance
1,434
1,371
4,561
4.6 %
(68.6) %
Mortgage banking income
744
901
632
(17.4) %
17.7 %
Other operating income
1,027
3,255
3,010
(68.4) %
(65.9) %
Total noninterest income/(loss)
$ 27,833
(8,849)
30,888
(414.5) %
(9.9) %
Noninterest income decreased from the quarter ended September 30, 2023 due to a decrease in income from bank-owned life insurance of $3 million as a result of death benefits received in the prior period. Compared to the quarter ended June 30, 2024, excluding the loss on sale of securities of $39 million, noninterest income decreased by $3 million due to a loss on an equity method investment, lower gain on sale of SBA loans and loss on the sale of buildings during the quarter.
Dollars in thousands
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Noninterest expense:
Personnel expense
$ 56,186
53,531
51,243
5.0 %
9.6 %
Non-personnel expense
34,581
38,889
36,327
(11.1) %
(4.8) %
Total noninterest expense
$ 90,767
92,420
87,570
(1.8) %
3.7 %
Noninterest expense increased from the quarter ended September 30, 2023 due to a $5 million increase in personnel expenses driven by the build-out of the commercial business and related credit, risk management and internal audit support functions over the past year coupled with an increase in contracted employees utilized during the quarter and an increase in medical expenses.
Compared to the quarter ended June 30, 2024, noninterest expense decreased due to a $3 million increase in personnel expense driven by additional contracted employees utilized during the quarter and an increase in medical expenses, which were more than offset by a decrease in non-personnel expense of $4 million due to restructuring expenses in the prior quarter and a decrease in fraud losses.
Dollars in thousands
Change 3Q24 vs.
3Q24
2Q24
3Q23
2Q24
3Q23
Income before income taxes
$ 43,493
5,942
50,684
632.0 %
(14.2) %
Income tax expense
9,875
1,195
11,464
726.4 %
(13.9) %
Net income
$ 33,618
4,747
39,220
608.2 %
(14.3) %
The provision for income taxes decreased by $2 million from the quarter ended September 30, 2023 and increased $9 million from the quarter ended June 30, 2024 primarily due to the quarterly change in income before income taxes.
Net income decreased from the quarter ended September 30, 2023, due to the factors discussed above, and increased from the quarter ended June 30, 2024 due to loss on sale of investments from the prior period balance sheet restructuring as well as the additional factors discussed above.
Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank. Founded in 1896 Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of September 30, 2024, Northwest operated 130 full-service financial centers and eleven free standing drive-up facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.'s common stock is listed on The Nasdaq Stock Market LLC ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed online at www.northwest.com.
# # #
Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including inflation and an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; (7) increased risk associated with commercial real-estate and business loans; (8) changes in liquidity, including the size and composition of our deposit portfolio; (9) reduction in the value of our goodwill and other intangible assets; and (10) the effect of any pandemic, war or act of terrorism. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release, except as required by law.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(dollars in thousands, except per share amounts)
September 30,2024
December 31,2023
September 30,2023
Assets
Cash and cash equivalents
$ 226,883
122,260
161,995
Marketable securities available-for-sale (amortized cost of $1,248,104, $1,240,003 and $1,262,080,respectively)
1,111,868
1,043,359
1,010,076
Marketable securities held-to-maturity (fair value of $672,641, $699,506 and $682,681, respectively)
766,772
814,839
830,106
Total cash and cash equivalents and marketable securities
2,105,523
1,980,458
2,002,177
Loans held-for-sale
9,370
8,768
10,592
Residential mortgage loans
3,248,788
3,419,417
3,462,606
Home equity loans
1,167,202
1,227,858
1,258,765
Consumer loans
1,998,032
2,126,027
2,155,119
Commercial real estate loans
2,994,379
2,974,010
2,922,582
Commercial loans
1,886,787
1,658,729
1,500,609
Total loans receivable
11,304,558
11,414,809
11,310,273
Allowance for credit losses
(125,813)
(125,243)
(124,841)
Loans receivable, net
11,178,745
11,289,566
11,185,432
FHLB stock, at cost
21,223
30,146
40,404
Accrued interest receivable
46,678
47,353
42,624
Real estate owned, net
76
104
363
Premises and equipment, net
126,391
138,838
138,041
Bank-owned life insurance
255,324
251,895
250,502
Goodwill
380,997
380,997
380,997
Other intangible assets, net
3,363
5,290
6,013
Other assets
236,005
294,458
315,648
Total assets
$ 14,354,325
14,419,105
14,362,201
Liabilities and shareholders' equity
Liabilities
Noninterest-bearing demand deposits
$ 2,581,769
2,669,023
2,774,291
Interest-bearing demand deposits
2,676,779
2,634,546
2,598,080
Money market deposit accounts
1,956,747
1,968,218
2,042,813
Savings deposits
2,145,735
2,105,234
2,116,360
Time deposits
2,710,049
2,602,881
2,258,338
Total deposits
12,071,079
11,979,902
11,789,882
Borrowed funds
204,374
398,895
604,587
Subordinated debt
114,451
114,189
114,102
Junior subordinated debentures
129,769
129,574
129,509
Advances by borrowers for taxes and insurance
24,700
45,253
27,653
Accrued interest payable
15,125
13,669
7,915
Other liabilities
203,502
186,306
190,122
Total liabilities
12,763,000
12,867,788
12,863,770
Shareholders' equity
Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares issued
—
—
—
Common stock, $0.01 par value: 500,000,000 shares authorized, 127,400,199, 127,110,453 and 127,101,349 shares issued and outstanding, respectively
1,274
1,271
1,271
Additional paid-in capital
1,030,384
1,024,852
1,023,591
Retained earnings
665,845
674,686
671,092
Accumulated other comprehensive loss
(106,178)
(149,492)
(197,523)
Total shareholders' equity
1,591,325
1,551,317
1,498,431
Total liabilities and shareholders' equity
$ 14,354,325
14,419,105
14,362,201
Equity to assets
11.09 %
10.76 %
10.43 %
Tangible common equity to tangible assets*
8.64 %
8.30 %
7.95 %
Book value per share
$ 12.49
12.20
11.79
Tangible book value per share*
$ 9.47
9.17
8.74
Closing market price per share
$ 13.38
12.48
10.23
Full time equivalent employees
1,975
2,098
2,084
Number of banking offices
141
142
142
*
Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)
Quarter ended
September 30, 2024
June 30,2024
March 31,2024
December 31,2023
September 30,2023
Interest income:
Loans receivable
$ 156,413
153,954
149,571
146,523
140,667
Mortgage-backed securities
10,908
9,426
7,944
7,951
8,072
Taxable investment securities
842
728
794
786
786
Tax-free investment securities
512
457
491
492
491
FHLB stock dividends
394
498
607
666
668
Interest-earning deposits
2,312
1,791
832
970
914
Total interest income
171,381
166,854
160,239
157,388
151,598
Interest expense:
Deposits
54,198
52,754
47,686
40,600
31,688
Borrowed funds
5,881
7,259
9,315
10,486
11,542
Total interest expense
60,079
60,013
57,001
51,086
43,230
Net interest income
111,302
106,841
103,238
106,302
108,368
Provision for credit losses - loans
5,727
2,169
4,234
3,801
3,983
Provision for credit losses - unfunded commitments
(852)
(2,539)
(799)
4,145
(2,981)
Net interest income after provision for credit losses
106,427
107,211
99,803
98,356
107,366
Noninterest income:
Loss on sale of investments
—
(39,413)
—
(1)
—
Gain on sale of SBA loans
667
1,457
873
388
301
Gain on sale of loans
—
—
—
726
—
Service charges and fees
15,932
15,527
15,523
15,922
15,270
Trust and other financial services income
7,924
7,566
7,127
6,884
7,085
Gain on real estate owned, net
105
487
57
1,084
29
Income from bank-owned life insurance
1,434
1,371
1,502
1,454
4,561
Mortgage banking income
744
901
452
247
632
Other operating income
1,027
3,255
2,429
2,465
3,010
Total noninterest income/(loss)
27,833
(8,849)
27,963
29,169
30,888
Noninterest expense:
Compensation and employee benefits
56,186
53,531
51,540
50,194
51,243
Premises and occupancy costs
7,115
7,464
7,627
7,049
7,052
Office operations
2,811
3,819
2,767
3,747
3,398
Collections expense
474
406
336
328
551
Processing expenses
14,570
14,695
14,725
15,017
14,672
Marketing expenses
2,004
2,410
2,149
1,317
2,379
Federal deposit insurance premiums
2,763
2,865
3,023
2,643
2,341
Professional services
3,302
3,728
4,065
6,255
3,002
Amortization of intangible assets
590
635
701
724
795
Real estate owned expense
23
57
66
51
141
Merger, asset disposition and restructuring expense
43
1,915
955
2,354
—
Other expenses
886
895
2,070
997
1,996
Total noninterest expense
90,767
92,420
90,024
90,676
87,570
Income before income taxes
43,493
5,942
37,742
36,849
50,684
Income tax expense
9,875
1,195
8,579
7,835
11,464
Net income
$ 33,618
4,747
29,163
29,014
39,220
Basic earnings per share
$ 0.26
0.04
0.23
0.23
0.31
Diluted earnings per share
$ 0.26
0.04
0.23
0.23
0.31
Annualized return on average equity
8.50 %
1.24 %
7.57 %
7.64 %
10.27 %
Annualized return on average assets
0.93 %
0.13 %
0.81 %
0.80 %
1.08 %
Annualized return on average tangible common equity *
11.26 %
1.65 %
10.08 %
10.28 %
13.80 %
Efficiency ratio
65.24 %
94.31 %
68.62 %
66.93 %
62.88 %
Efficiency ratio, excluding certain items **
64.78 %
65.41 %
67.35 %
64.66 %
62.31 %
Annualized noninterest expense to average assets
2.52 %
2.57 %
2.51 %
2.51 %
2.42 %
Annualized noninterest expense to average assets, excluding certainitems**
2.50 %
2.50 %
2.47 %
2.43 %
2.39 %
*
Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
**
Excludes loss on sale of investments, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)
Nine months ended September 30,
2024
2023
Interest income:
Loans receivable
$ 459,938
397,136
Mortgage-backed securities
28,278
24,935
Taxable investment securities
2,364
2,472
Tax-free investment securities
1,460
1,858
FHLB stock dividends
1,499
2,202
Interest-earning deposits
4,935
1,931
Total interest income
498,474
430,534
Interest expense:
Deposits
154,638
64,743
Borrowed funds
22,455
36,410
Total interest expense
177,093
101,153
Net interest income
321,381
329,381
Provision for credit losses - loans
12,130
14,863
Provision for credit losses - unfunded commitments
(4,190)
65
Net interest income after provision for credit losses
313,441
314,453
Noninterest income:
Loss on sale of investments
(39,413)
(8,306)
Gain on sale of mortgage servicing rights
—
8,305
Gain on sale of SBA loans
2,997
1,412
Service charges and fees
46,982
43,292
Trust and other financial services income
22,617
20,400
Gain on real estate owned, net
649
922
Income from bank-owned life insurance
4,307
7,134
Mortgage banking income
2,097
2,184
Other operating income
6,711
9,311
Total noninterest income
46,947
84,654
Noninterest expense:
Compensation and employee benefits
161,257
145,497
Premises and occupancy costs
22,206
22,102
Office operations
9,397
9,208
Collections expense
1,216
1,367
Processing expenses
43,990
43,670
Marketing expenses
6,563
8,127
Federal deposit insurance premiums
8,651
6,628
Professional services
11,095
11,564
Amortization of intangible assets
1,926
2,546
Real estate owned expense
146
405
Merger, asset disposition and restructuring expense
2,913
4,395
Other expenses
3,851
5,369
Total noninterest expense
273,211
260,878
Income before income taxes
87,177
138,229
Income tax expense
19,649
32,286
Net income
$ 67,528
105,943
Basic earnings per share
$ 0.53
0.83
Diluted earnings per share
$ 0.53
0.83
Annualized return on average equity
5.80 %
9.37 %
Annualized return on average assets
0.63 %
0.99 %
Annualized return on tangible common equity *
7.71 %
12.61 %
Efficiency ratio
74.18 %
63.01 %
Efficiency ratio, excluding certain items **
65.82 %
61.33 %
Annualized noninterest expense to average assets
2.53 %
2.45 %
Annualized noninterest expense to average assets, excluding certain items **
2.49 %
2.38 %
*
Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
**
Excludes loss on sale of investments, gain on sale of mortgage servicing rights, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
Northwest Bancshares, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited) *
(dollars in thousands, except per share amounts)
Quarter ended
Nine months ended September 30,
September 30,2024
June 30,2024
September 30,2023
2024
2023
Reconciliation of net income to adjusted net operating income:
Net income (GAAP)
$ 33,618
4,747
39,220
67,528
105,943
Non-GAAP adjustments
Add: merger, asset disposition and restructuring expense
43
1,915
—
2,913
4,395
Add: loss on the sale of investments
—
39,413
—
39,413
8,306
Less: gain on sale of mortgage servicing rights
—
—
—
—
(8,305)
Less: tax benefit of non-GAAP adjustments
(12)
(11,572)
—
(11,851)
(1,231)
Adjusted net operating income (non-GAAP)
$ 33,649
34,503
39,220
98,003
109,108
Diluted earnings per share (GAAP)
$ 0.26
0.04
0.31
0.53
0.83
Diluted adjusted operating earnings per share (non-GAAP)
$ 0.26
0.27
0.31
0.77
0.86
Average equity
$ 1,572,897
1,541,434
1,515,287
1,554,800
1,511,428
Average assets
14,351,669
14,458,592
14,379,323
14,406,092
14,249,857
Annualized return on average equity (GAAP)
8.50 %
1.24 %
10.27 %
5.80 %
9.37 %
Annualized return on average assets (GAAP)
0.93 %
0.13 %
1.08 %
0.63 %
0.99 %
Annualized return on average equity, excluding merger, asset disposition and restructuring expense, loss on the sale of investmentsand gain on sale of mortgage servicing rights, net of tax (non-GAAP)
8.51 %
9.00 %
10.27 %
8.42 %
9.65 %
Annualized return on average assets, excluding merger, assetdisposition and restructuring expense, loss on sale of investments, andgain on sale of mortgage servicing rights, net of tax (non-GAAP)
0.93 %
0.96 %
1.08 %
0.91 %
1.02 %
The following non-GAAP financial measures used by the Company provide information useful to investors in understanding our operating performance and trends, and facilitate comparisons with the performance of our peers. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's Consolidated Statements of Financial Condition.
September 30,2024
December 31,2023
September 30,2023
Tangible common equity to assets
Total shareholders' equity
$ 1,591,325
1,551,317
1,498,431
Less: goodwill and intangible assets
(384,360)
(386,287)
(387,010)
Tangible common equity
$ 1,206,965
1,165,030
1,111,421
Total assets
$ 14,354,325
14,419,105
14,362,201
Less: goodwill and intangible assets
(384,360)
(386,287)
(387,010)
Tangible assets
$ 13,969,965
14,032,818
13,975,191
Tangible common equity to tangible assets
8.64 %
8.30 %
7.95 %
Tangible common equity to tangible assets, including unrealized losses on held-to-maturity investments
Tangible common equity
$ 1,206,965
1,165,030
1,111,421
Less: unrealized losses on held to maturity investments
(94,131)
(115,334)
(147,425)
Add: deferred taxes on unrealized losses on held to maturity investments
26,357
32,294
41,279
Tangible common equity, including unrealized losses on held-to-maturity investments
$ 1,139,191
1,081,990
1,005,275
Tangible assets
$ 13,969,965
14,032,818
13,975,191
