Q3 2024 Northwest Bancshares Inc Earnings Call Transcript
Key Points
- Northwest Bancshares Inc (NWBI) reported a net income of $33.6 million or $0.26 per diluted share for the third quarter of 2024.
- The net interest margin expanded by 13 basis points to 3.33%, reflecting improved pricing discipline and a favorable interest rate environment.
- Deposits grew by 3.2% year over year, with a near best-in-class cost of deposits at 1.78%.
- The efficiency ratio improved to 64.8% due to a $2 million reduction in expenses, highlighting cost management efforts.
- Commercial and industrial loans grew by 2.8% since last quarter and 25.7% year over year, indicating a successful focus on commercial banking transformation.
- Non-interest income decreased by $3 million due to losses on equity method investments and lower gains on the sale of SBA loans.
- Residential mortgages declined by $190 million or 5.5% since last year, indicating a shift away from this segment.
- The loan portfolio was essentially flat, with no significant growth in new loans.
- Classified loans increased slightly to 2.83% of total loans, indicating some deterioration in credit quality.
- The allowance coverage slightly increased to 1.11% of loans, reflecting a cautious approach to potential credit risks.
Thank you for standing by. My name is Ken. I will be your conference operator today. At this time. I would like to welcome everyone to the Northwest Bancshares Inc. third quarter 2024 earnings call. (Operator Instructions) I would now like to turn the call over to Joseph Canfield, Executive Vice President, Chief Accounting Officer. You may begin.
Good morning, everyone and thank you operator. Welcome to Northwest Bancshares. third quarter, 2024 earnings call. Joining me today are Louis Torchio, President and CEO of Northwest Bancshares Inc, the holding company for Northwest Bank, Douglas Schosser, Chief Financial Officer; and T. K. Creal, Chief Credit Officer.
During this call, we'll refer to information included in the supplemental earnings release presentation which is available on our investor relations website. This presentation includes our forward-looking statements and other data including non-GAAP measures.
Please note that actual
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