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Mar 31, 2022
Northwest Bancshares Q1 2022 Earnings Report
Reported a decrease in net income compared to the same quarter last year, but showed continued expense management and improving asset quality metrics.
Key Takeaways
Northwest Bancshares, Inc. reported a net income of $28.3 million, or $0.22 per diluted share, for the quarter ended March 31, 2022. This represents a decrease compared to the same quarter last year. The company's asset quality metrics improved, and expense management showed a favorable trend. The board declared a quarterly cash dividend of $0.20 per share.
Net income for Q1 2022 was $28.3 million, or $0.22 per diluted share, a decrease from $40.2 million, or $0.32 per diluted share, in the same quarter last year.
Annualized returns on average shareholders’ equity and average assets were 7.17% and 0.80%, respectively, compared to 10.61% and 1.17% in the same quarter last year.
A quarterly cash dividend of $0.20 per share was declared, payable on May 16, 2022.
Asset quality metrics improved with nonperforming and classified assets declining by $100.4 million and $147.9 million, respectively.
Forward Guidance
The company anticipates benefits from recent Federal Reserve interest rate increases and market expectations of further rate hikes throughout the year.
Positive Outlook
- Anticipated benefits from recent Federal Reserve interest rate increases.
- Market expectations of more rate increases throughout the remainder of the year.
- Expense savings of approximately $8.0 million expected from branch consolidation.
- Successfully deployed a portion of liquidity by purchasing two separate loan packages to augment loan production.
- Capitalized on higher market yields through loan package purchases.
Challenges Ahead
- Net interest income and net interest margin were impacted by the low interest rate environment.
- Net interest income and net interest margin were impacted by excess balance sheet liquidity.
- PPP fee accretion decreased to $1.2 million during the current quarter compared to $4.8 million in the same quarter last year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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