Northwest Bancshares, Inc. has announced their second-quarter 2024 financial results, reflecting a net income of $5 million, or $0.04 per diluted share. This represents a decrease of $28 million compared to the same quarter last year, where net income was $33 million, or $0.26 per diluted share. Compared to the prior quarter, net income decreased by $24 million, as the net income was $29 million, or $0.23 per diluted share.
Notably, the company's adjusted net operating income was $35 million, or $0.27 per diluted share for the quarter ended June 30, 2024. This represents an increase of $1 million from the same quarter last year, when adjusted net operating income was $34 million, or $0.27 per diluted share. Furthermore, it reflects an increase of $5 million compared to the prior quarter, where adjusted net operating income was $30 million, or $0.23 per diluted share.
The company's average loans receivable increased by $303 million from the quarter ended June 30, 2023, driven by the growth of their commercial banking portfolio. The average investments declined by $213 million from the quarter ended June 30, 2023, and $30 million from the quarter ended March 31, 2024.
Furthermore, average deposits grew by $666 million from the quarter ended June 30, 2023, driven by a $1.1 billion increase in average time deposits. Average borrowings saw a significant reduction of $514 million compared to the quarter ended June 30, 2023.
The net interest income decreased by $2 million, and the net interest margin decreased to 3.20% for the quarter ended June 30, 2024 from 3.28% for the quarter ended June 30, 2023. This was primarily due to a $25 million increase in interest expense, which offset the increase in interest income.
The company experienced a total provision for credit losses expense of $(370) million for the quarter ended June 30, 2024, primarily driven by improvements in economic forecasts coupled with a decline in reserves for unfunded commitments in the current period.
Noninterest income for the quarter ended June 30, 2024, showed a loss of $9 million, inclusive of a $39 million loss on the sale of investment securities. Excluding the loss on sale of securities, net interest income grew by $1 million, or 3%, from the quarter ended June 30, 2023, and $3 million, or 9% from the quarter ended March 31, 2024.
Noninterest expense increased from the quarter ended June 30, 2023, due to a $6 million increase in personnel expenses, driven by the build-out of the commercial business and related functions over the past year.
Today the company's shares have moved 4.2% to a price of $13.88. Check out the company's full 8-K submission here.
