Northwest Bancshares, Inc. Announces Fourth Quarter 2013 Earnings and Dividend Declaration

Jan 24, 2014, 09:40 ET from Northwest Bancshares, Inc.

WARREN, Pa., Jan. 24, 2014 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2013 of $20.4 million, or $0.22 per diluted share.  This represents an increase of $4.1 million, or 24.7%, over the same quarter last year when net income was $16.3 million, or $0.18 per diluted share, and an increase of $2.8 million, or 15.7%, compared to the quarter ended September 30, 2013 when net income was $17.6 million, or $0.19 per diluted share.  The annualized returns on average shareholders' equity and average assets for the current quarter were 7.06% and 1.02% compared to 5.65% and 0.81% for the same quarter last year and 6.18% and 0.88% for the quarter ended September 30, 2013. 

For the year ended December 31, 2013 net income was $66.7 million which represents an increase of $3.1 million, or 5.0%, compared to net income of $63.6 million for the year ended December 31, 2012.  Diluted earnings per share for the year ended December 31, 2013 increased to $0.73 from $0.68 for the year ended December 31, 2012.  The returns on average shareholders' equity and average assets were 5.88% and 0.84%, respectively, for the current year compared to 5.48% and 0.79%, respectively, in the prior year.    

The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.13 per share and a special cash dividend of $0.10 per share, both payable on February 13, 2014, to shareholders of record as of February 3, 2014.  This represents the 77th consecutive quarter in which the Company has paid a cash dividend. 

In making this announcement, William J. Wagner, President and CEO, noted, "Given the continued consistency in annual earnings and our robust capital position, we are pleased to return some excess capital to our shareholders in the form of a special dividend of $0.10 per share.  We are also pleased to report positive trends in the most challenging areas of our operation.  While our net interest margin continues to shrink, the rate of contraction has slowed, as we lost only two basis points per quarter over the past two quarters.  We continued to experience solid loan growth with a $75 million increase during the quarter, split proportionately between the personal and commercial portfolios.  Classified and nonaccrual loans continued to decrease which resulted in the recording of the lowest quarterly provision for loan losses since the credit crisis began in 2008."

Net interest income decreased by $4.3 million, or 6.4%, to $62.0 million for the quarter ended December 31, 2013, from $66.3 million for the quarter ended December 31, 2012, as decreases in interest income on loans receivable and investment securities of $5.5 million and $816,000, respectively, were partially offset by a $2.1 million decrease in interest paid on deposit accounts. These changes from the previous year were due primarily to the continued low level of market interest rates.

The provision for loan losses decreased by $7.2 million, or 88.2%, to $964,000 for the quarter ended December 31, 2013, from $8.2 million for the quarter ended December 31, 2012.  Loans 90 days or more delinquent decreased by $10.5 million, or 15.5%, to $57.8 million at December 31, 2013 from $68.3 million at December 31, 2012.  Additionally, criticized loans decreased by $36.5 million, or 11.0%, to $295.5 million at December 31, 2013 from $332.0 million at December 31, 2012.  At December 31, 2013, the allowance for loan losses was $71.3 million, or 1.23% of total loans, compared to $73.2 million, or 1.28% of total loans, at December 31, 2012.  Net charge-offs were $5.5 million, or 0.38% for the quarter ended December 31, 2013 compared to $6.1 million, or 0.43% for the same quarter last year. 

Noninterest income increased by $6.2 million, or 42.6%, to $20.9 million for the quarter ended December 31, 2013, from $14.7 million for the quarter ended December 31, 2012.  This increase is due primarily to a $5.5 million increase in the gain on sale of investments. Additionally, the loss on the sale of real estate owned decreased by $2.1 million as the portfolio of foreclosed real estate decreased by $8.0 million, or 30.4%, compared to last year.  Partially offsetting these increases was a decrease in mortgage banking income of $1.6 million, due primarily to retaining all new residential mortgage originations. 

Noninterest expense increased by $2.2 million, or 4.3%, to $52.6 million for the quarter ended December 31, 2013, from $50.4 million for the quarter ended December 30, 2012, due primarily to an increase in marketing expense of $1.1 million which was due to the timing of various campaigns in the current and prior year. 

Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Savings Bank.  Founded in 1896, Northwest Savings Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. Northwest operates 165 community banking offices in Pennsylvania, New York, Ohio and Maryland and 50 consumer finance offices in Pennsylvania through its subsidiary, Northwest Consumer Discount Company.  Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market. Additional information regarding Northwest Bancshares, Inc. can be accessed on-line at www.northwestsavingsbank.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 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; and (7) increased risk associated with an increase in commercial real-estate and business loans.  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.   

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(Dollars in thousands, except per share amounts)

December 31,

Assets

2013

2012

Cash and cash equivalents

$      98,122

88,277

Interest-earning deposits in other financial institutions

293,149

362,794

Federal funds sold and other short-term investments

634

633

Marketable securities available-for-sale (amortized cost of $1,022,078 and $1,053,122)

1,016,767

1,079,074

Marketable securities held-to-maturity (fair value of $124,061 and $161,969)

121,366

155,081

Total cash, interest-earning deposits and marketable securities

1,530,038

1,685,859

Residential mortgage loans held for sale

221

15,441

Residential mortgage loans

2,482,783

2,400,208

Home equity loans 

1,083,939

1,083,654

Other consumer loans

228,348

228,350

Commercial real estate loans

1,608,399

1,585,833

Commercial loans

402,601

388,994

Total loans receivable

5,806,291

5,702,480

Allowance for loan losses

(71,348)

(73,219)

Loans receivable, net

5,734,943

5,629,261

Federal Home Loan Bank stock, at cost

43,715

46,834

Accrued interest receivable

21,821

23,313

Real estate owned, net

18,203

26,165

Premises and Equipment, net

146,139

138,824

Bank owned life insurance

140,172

137,044

Goodwill and other intangible assets

174,463

174,461

Other intangible assets

2,319

3,529

Other assets

72,754

77,310

Total assets

$  7,884,567

7,942,600

Liabilities and Shareholders' equity

Liabilities

Noninterest-bearing demand deposits

$    789,135

755,429

Interest-bearing demand deposits

852,809

851,771

Savings deposits

2,359,538

2,271,311

Time deposits

1,667,397

1,886,089

Total deposits

5,668,879

5,764,600

Borrowed funds

881,645

860,047

Advances by borrowers for taxes and insurance

26,669

23,325

Accrued interest payable

888

888

Other liabilities

43,499

62,177

Junior subordinated debentures

103,094

103,094

Total liabilities

6,724,674

6,814,131

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, 94,243,713 shares

and 93,652,960 shares issued and outstanding, respectively

943

937

Paid-in-capital

619,678

613,249

Retained earnings

571,164

550,296

Unallocated common stock of Employee Stock Ownership Plan

(23,083)

(24,525)

Accumulated other comprehensive loss

(8,809)

(11,488)

Total shareholders' equity

1,159,893

1,128,469

Total liabilities and shareholders' equity

$  7,884,567

7,942,600

Equity to assets

14.72%

14.21%

Tangible common equity to assets

12.76%

12.24%

Book value per share

$         12.29

12.05

Tangible book value per share

$         10.42

10.15

Closing market price per share

$         14.78

12.14

Full time equivalent employees

2,043

2,042

Number of banking offices

165

165

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share amounts)

Quarter ended

December 31,

September 30,

2013

2012

2013

Interest income:

Loans receivable

$            70,849

76,366

71,480

Mortgage-backed securities

2,956

3,697

3,113

Taxable investment securities

1,052

743

1,030

Tax-free investment securities

1,748

2,132

1,912

Interest-earning deposits

249

382

253

Total interest income

76,854

83,320

77,788

Interest expense:

Deposits

6,911

9,042

7,150

Borrowed funds

7,894

7,998

8,126

Total interest expense

14,805

17,040

15,276

Net interest income

62,049

66,280

62,512

Provision for loan losses

964

8,173

4,992

Net interest income after provision

for loan losses

61,085

58,107

57,520

Noninterest income:

Impairment losses on securities

(713)

-

-

Noncredit related losses on securities not expected

to be sold (recognized in other comprehensive income)

-

-

-

Net impairment losses

(713)

-

-

Gain on sale of investments, net

5,889

394

109

Service charges and fees

8,874

8,922

9,282

Trust and other financial services income

2,483

2,288

2,380

Insurance commission income

2,131

1,463

2,019

Loss on real estate owned, net

(660)

(2,804)

(111)

Income from bank owned life insurance

1,846

1,589

1,178

Mortgage banking income

228

1,874

203

Other operating income

869

964

1,049

Total noninterest income

20,947

14,690

16,109

Noninterest expense:

Compensation and employee benefits

28,475

28,302

27,629

Premises and occupancy costs

5,652

5,680

5,633

Office operations

3,823

3,419

3,497

Processing expenses

6,269

6,459

6,036

Marketing expenses

1,259

134

1,032

Federal deposit insurance premiums

1,361

1,211

1,377

Professional services

2,044

1,869

1,331

Amortization of intangible assets

222

219

291

Real estate owned expense

557

477

681

Other expense

2,918

2,662

2,770

Total noninterest expense

52,580

50,432

50,277

Income before income taxes

29,452

22,365

23,352

Income tax expense

9,089

6,040

5,752

Net income

$         20,363

16,325

17,600

Basic earnings per share

$             0.22

0.18

0.19

Diluted earnings per share

$              0.22

0.18

0.19

Annualized return on average equity

7.06%

5.65%

6.18%

Annualized return on average assets

1.02%

0.81%

0.88%

Basic common shares outstanding

90,864,076

92,716,973

90,760,402

Diluted common shares outstanding

92,245,167

92,929,614

91,824,384

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share amounts)

Year ended 

December 31,

2013

2012

Interest income:

Loans receivable

$            287,289

308,254

Mortgage-backed securities

12,818

16,738

Taxable investment securities

4,021

2,328

Tax-free investment securities

7,817

9,119

Interest-earning deposits

1,093

1,599

Total interest income

313,038

338,038

Interest expense:

Deposits

29,279

43,377

Borrowed funds

31,883

31,822

Total interest expense

61,162

75,199

Net interest income

251,876

262,839

Provision for loan losses

18,519

26,338

Net interest income after provision

for loan losses

233,357

236,501

Noninterest income:

Impairment losses on securities

(713)

(996)

Noncredit related losses on securities not expected

to be sold (recognized in other comprehensive income)

-

665

Net impairment losses

(713)

(331)

Gain on sale of investments, net

6,118

654

Service charges and fees

35,884

35,623

Trust and other financial services income

9,330

8,544

Insurance commission income

8,635

6,264

Loss on real estate owned, net

(3,186)

(5,643)

Income from bank owned life insurance

5,197

4,961

Mortgage banking income

1,623

4,678

Other operating income

3,959

4,154

Total noninterest income

66,847

58,904

Noninterest expense:

Compensation and employee benefits

112,190

111,727

Premises and occupancy costs

23,182

22,409

Office operations

14,454

13,224

Processing expenses

25,548

25,000

Marketing expenses

6,284

7,829

Federal deposit insurance premiums

5,600

5,554

Professional services

6,267

7,005

Amortization of intangible assets

1,210

1,012

Real estate owned expense

2,437

2,620

Other expense

9,962

9,097

Total noninterest expense

207,134

205,477

Income before income taxes

93,070

89,928

Income tax expense

26,331

26,368

Net income

$               66,739

63,560

Basic earnings per share

$                   0.74

0.68

Diluted earnings per share

$                   0.73

0.68

Annualized return on average equity

5.88%

5.48%

Annualized return on average assets

0.84%

0.79%

Basic common shares outstanding

90,626,324

93,912,821

Diluted common shares outstanding

91,470,819

94,201,374

 

Northwest Bancshares, Inc. and Subsidiaries

Asset quality

(Dollars in thousands)

December 31, 

2013

December 31, 

2012

December 31,

2011

December 31,

2010

Non-accrual loans current:

Residential mortgage loans

$                1,361

797

-

-

Home equity loans

835

635

-

-

Other consumer loans

98

44

-

-

Commercial real estate loans

17,866

24,960

13,057

7,378

Commercial loans

13,357

5,424

13,480

23,317

Total non-accrual loans current

$              33,517

31,860

26,537

30,695

Non-accrual loans delinquent 30 days to 59 days:

Residential mortgage loans

$                   427

-

-

-

Home equity loans

404

-

-

-

Other consumer loans

15

-

-

-

Commercial real estate loans

3,468

5,549

3,274

4,039

Commercial loans

7,650

2,002

90

1,465

Total non-accrual loans delinquent 30 days to 59 days

$             11,964

7,551

3,364

5,504

Non-accrual loans delinquent 60 days to 89 days:

Residential mortgage loans

$                    864

-

-

-

Home equity loans

280

-

-

-

Other consumer loans

87

-

-

-

Commercial real estate loans

2,036

2,802

1,560

10,923

Commercial loans

716

9,652

3,808

848

Total non-accrual loans delinquent 60 days to 89 days

$                3,983

12,454

5,368

11,771

Non-accrual loans delinquent 90 days or more:

Residential mortgage loans

$             24,625

24,286

28,221

29,751

Home equity loans

8,344

8,479

9,560

10,263

Other consumer loans

2,057

1,936

2,667

2,565

Commercial real estate loans

18,433

24,550

44,603

44,965

Commercial loans

4,298

9,096

10,785

12,877

Total non- accrual loans delinquent 90 days or more

$             57,757

68,347

95,836

100,421

Total non-accrual loans

$            107,221

120,212

131,105

148,391

December 31,

December 31,

December 31,

December 31,

2013

2012

2011

2010

Non-accrual loans

$            107,221

120,212

131,105

148,391

Loans 90 days past maturity and still accruing

690

1,698

510

1,067

   Nonperforming loans

107,911

121,910

131,615

149,458

Real estate owned, net

18,203

26,165

26,887

20,780

   Nonperforming assets

$             126,114

148,075

158,502

170,238

Non-accrual troubled debt restructuring *

$               28,889

41,166

29,575

41,740

Accruing troubled debt restructuring

50,277

48,278

39,854

10,865

Total troubled debt restructuring

$               79,166

89,444

69,429

52,605

Nonperforming loans to total loans

1.86%

2.14%

2.37%

2.70%

Nonperforming assets to total assets

1.60%

1.86%

1.99%

2.09%

Allowance for loan losses to total loans

1.23%

1.28%

1.28%

1.38%

Allowance for loan losses to nonperforming loans

66.12%

60.06%

54.05%

51.13%

* Amounts included in nonperforming loans above.

 

Northwest Bancshares, Inc. and Subsidiaries

Delinquency

(Dollars in thousands)

Loan delinquency schedule

(Number of loans and dollar amount of loans)

December 31,

December 31,

December 31,

December 31,

2013

*

2012

*

2011

*

2010

*

Loans delinquent 30 days to 59 days:

Residential mortgage loans

374

$      27,486

1.1%

430

$      32,921

1.4%

427

$      33,671

1.4%

427

$      35,329

1.5%

Home equity loans

213

6,946

0.6%

224

6,534

0.6%

222

7,426

0.7%

230

7,317

0.7%

Consumer loans

1,010

4,515

2.0%

1,122

5,456

2.4%

903

4,854

2.0%

1,008

5,318

2.1%

Commercial real estate loans

73

8,449

0.5%

87

13,001

0.8%

104

10,680

0.7%

82

16,287

1.2%

Commercial loans

34

9,243

2.3%

41

3,233

0.8%

32

2,027

0.5%

48

6,590

1.5%

Total loans delinquent 30 days to 59 days

1,704

$      56,639

1.0%

1,904

$      61,145

1.1%

1,688

58,658

1.1%

1,795

$      70,841

1.3%

Loans delinquent 60 days to 89 days:

Residential mortgage loans

103

$         7,568

0.3%

100

$         9,387

0.4%

99

$         8,629

0.4%

106

$         9,848

0.4%

Home equity loans

67

2,243

0.2%

65

1,977

0.2%

47

1,953

0.2%

81

3,249

0.3%

Consumer loans

507

1,866

0.8%

448

1,830

0.8%

412

1,787

0.7%

356

1,331

0.5%

Commercial real estate loans

35

3,968

0.2%

33

4,596

0.3%

38

3,122

0.2%

39

14,365

1.1%

Commercial loans

16

1,555

0.4%

17

10,158

2.6%

25

4,958

1.3%

9

1,678

0.4%

Total loans delinquent 60 days to 89 days

728

$      17,200

0.3%

663

$      27,948

0.5%

621

20,449

0.4%

591

$      30,471

0.6%

Loans delinquent 90 days or more:

Residential mortgage loans

273

$      24,625

1.0%

266

$      24,286

1.0%

273

$      28,221

1.2%

275

$      29,751

1.2%

Home equity loans

171

8,344

0.8%

175

8,479

0.8%

177

9,560

0.9%

190

10,263

0.9%

Consumer loans

470

2,057

0.9%

427

1,936

0.8%

456

2,667

1.1%

374

2,565

1.0%

Commercial real estate loans

124

18,433

1.1%

146

24,550

1.5%

131

44,603

3.1%

181

44,965

3.3%

Commercial loans

31

4,298

1.1%

61

9,096

2.3%

66

10,785

2.8%

111

12,877

3.0%

Total loans delinquent 90 days or more

1,069

$      57,757

1.0%

1,075

$      68,347

1.2%

1,103

95,836

1.7%

1,131

$   100,421

1.8%

Total loans delinquent

3,501

$   131,596

2.3%

3,642

$   157,440

2.8%

3,412

$   174,943

3.2%

3,517

$   201,733

3.7%

* - Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.  

 

Northwest Bancshares, Inc. and Subsidiaries

Loans by credit quality indicators as of December 31, 2013

(Dollars in thousands)

Recorded

investment

Special

in loans

Pass

mention

Substandard

 Doubtful 

 Loss 

receivable

Personal Banking:

Residential mortgage loans

$         2,464,057

-

17,626

-

1,321

2,483,004

Home equity loans

1,075,595

-

8,344

-

-

1,083,939

Other consumer loans

226,922

-

1,426

-

-

228,348

Total Personal Banking

3,766,574

-

27,396

-

1,321

3,795,291

Business Banking:

Commercial real estate loans

1,398,652

46,557

161,906

1,284

-

1,608,399

Commercial loans

345,612

12,045

43,040

1,904

-

402,601

Total Business Banking

1,744,264

58,602

204,946

3,188

-

2,011,000

$         5,510,838

58,602

232,342

3,188

1,321

5,806,291

Northwest Bancshares, Inc. and Subsidiaries

Loans by credit quality indicators as of December 31, 2012 

(Dollars in thousands)

Recorded

investment

Special

in loans

Pass

mention

Substandard

 Doubtful 

 Loss 

receivable

Personal Banking:

Residential mortgage loans

$         2,395,809

-

18,743

48

1,049

2,415,649

Home equity loans

1,075,200

-

8,454

-

-

1,083,654

Other consumer loans

227,089

-

1,261

-

-

228,350

Total Personal Banking

3,698,098

-

28,458

48

1,049

3,727,653

Business Banking:

Commercial real estate loans

1,352,118

68,130

163,751

1,834

-

1,585,833

Commercial loans

320,228

13,077

52,742

2,947

-

388,994

Total Business Banking

1,672,346

81,207

216,493

4,781

-

1,974,827

$         5,370,444

81,207

244,951

4,829

1,049

5,702,480

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for loan losses

(Dollars in thousands)

Quarter ended

Year ended

December 31, 

December 31, 

2013

2012

2013

2012

Allowance for loan losses 

Beginning balance

$    75,865

71,177

73,219

71,138

Provision

964

8,173

18,519

26,338

Charge-offs residential mortgage

(499)

(836)

(2,501)

(4,295)

Charge-offs home equity

(851)

(1,317)

(2,239)

(4,066)

Charge-offs other consumer

(1,696)

(1,592)

(6,055)

(5,919)

Charge-offs commercial real estate

(2,308)

(4,102)

(10,042)

(9,919)

Charge-offs commercial

(1,322)

(1,245)

(5,007)

(6,254)

Recoveries

1,195

2,961

5,454

6,196

Ending balance

$    71,348

73,219

71,348

73,219

Net charge-offs to average loans, annualized

0.38%

0.43%

0.36%

0.43%

 

Northwest Bancshares, Inc. and Subsidiaries

Municipal securities portfolio

(Dollars in thousands)

December 31, 2013

As a % of

Market

Amortized

Unrealized

amortized

 value 

cost

gain/ (loss)

cost

Municipal securities by state:

Pennsylvania

School districts

$                 76,736

75,767

969

47.1%

General obligations

28,745

28,264

481

17.6%

Revenue bonds

1,071

1,080

(9)

0.7%

Total Pennsylvania

106,552

105,111

1,441

65.4%

New York

15,857

15,665

192

9.7%

Ohio

5,980

5,975

5

3.7%

All other states

34,828

34,014

814

21.2%

$              163,217

160,765

2,452

December 31, 2012

As a % of

Market

Amortized

Unrealized

amortized

 value 

cost

gain

cost

Municipal securities by state:

Pennsylvania

School districts

$                 96,271

91,951

4,320

46.7%

General obligations

37,205

35,418

1,787

18.0%

Revenue bonds

3,006

2,948

58

1.5%

Total Pennsylvania

136,482

130,317

6,165

66.2%

New York

26,831

25,954

877

13.2%

Ohio

6,390

5,973

417

3.0%

All other states

37,683

34,659

3,024

17.6%

$              207,386

196,903

10,483

Northwest Bancshares, Inc. and Subsidiaries

Average balance sheet 

(Dollars in thousands)

The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and

average cost of liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of

assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages.

 Quarter ended December 31, 

2013

2012

 Average 

 Interest 

 Avg. 

 Average 

 Interest 

 Avg. 

 Balance 

 Yield/ 

 Balance 

 Yield/ 

 Cost (g) 

 Cost (g) 

Assets:

Interest-earning assets:

   Loans receivable (a) (b) (d)

$  5,762,308

71,421

4.96%

$  5,709,603

76,944

5.39%

   Mortgage-backed securities (c) 

653,526

2,956

1.81%

717,028

3,697

2.06%

   Investment securities (c) (d) 

528,612

3,740

2.83%

408,925

4,022

3.93%

   FHLB stock

43,715

180

1.65%

46,833

51

0.44%

   Other interest-earning deposits

373,694

249

0.26%

608,772

382

0.25%

Total interest-earning assets 

7,361,855

78,546

4.27%

7,491,161

85,096

4.54%

Noninterest earning assets (e)

541,511

502,514

Total assets

$  7,903,366

$  7,993,675

Liabilities and shareholders' equity:

Interest-bearing liabilities:

   Savings accounts

$  1,191,476

919

0.31%

$  1,145,405

1,019

0.35%

   Interest-bearing demand accounts

851,356

144

0.07%

837,955

145

0.07%

   Money market accounts

1,160,520

783

0.27%

1,115,655

842

0.30%

   Certificate accounts

1,690,251

5,065

1.19%

1,923,699

7,036

1.46%

   Borrowed funds (f)

889,920

6,711

2.99%

864,085

6,562

3.02%

   Junior subordinated debentures

103,094

1,183

4.49%

103,094

1,436

5.45%

Total interest-bearing liabilities

5,886,617

14,805

1.00%

5,989,893

17,040

1.13%

Noninterest bearing checking

808,732

751,164

Noninterest bearing liabilities

64,338

103,622

Total liabilities

6,759,687

6,844,679

Shareholders' equity

1,143,679

1,148,996

Total liabilities and shareholders' equity

$  7,903,366

$  7,993,675

Net interest income/ Interest rate spread

63,741

3.27%

68,056

3.41%

Net interest-earning assets/ Net interest margin

$  1,475,238

3.46%

$  1,501,268

3.63%

Ratio of interest-earning assets to

 interest-bearing liabilities

 1.25X 

 1.25X 

(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.

(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.

(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.

(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.

(f) Average balances include FHLB borrowings and securities sold under agreements to repurchase.

(g) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.92% and 5.35%, respectively, Investment securities - 2.12% 

      and 2.81%, respectively, Interest-earning assets - 4.19% and 4.45%, respectively. GAAP basis net interest rate spreads were 3.19% and 

      3.32%, respectively, and GAAP basis net interest margins were 3.38% and 3.54%, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Average balance sheet 

(Dollars in thousands)

The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and

average cost of liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of

assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages.

 Year ended December 31, 

2013

2012

 Average 

 Interest 

 Avg. 

 Average 

 Interest 

 Avg. 

 Balance 

 Yield/ 

 Balance 

 Yield/ 

 Cost (g) 

Cost (g) 

Assets:

Interest-earning assets:

   Loans receivable (a) (b) (d)

$  5,682,431

289,547

5.10%

$  5,655,179

310,513

5.49%

   Mortgage-backed securities (c) 

701,589

12,818

1.83%

736,896

16,738

2.27%

   Investment securities (c) (d) 

518,753

16,047

3.09%

353,431

16,357

4.63%

   FHLB stock

46,580

371

0.80%

47,205

87

0.18%

   Other interest-earning deposits

410,022

1,093

0.26%

638,366

1,599

0.25%

Total interest-earning assets 

7,359,375

319,876

4.35%

7,431,077

345,294

4.65%

Noninterest earning assets (e)

572,082

581,429

Total assets

$  7,931,457

$  8,012,506

Liabilities and shareholders' equity:

Interest-bearing liabilities:

   Savings accounts

$  1,197,931

3,595

0.30%

$  1,136,774

4,219

0.37%

   Interest-bearing demand accounts

855,031

576

0.07%

822,626

792

0.10%

   Money market accounts

1,133,584

3,042

0.27%

1,047,894

3,605

0.34%

   Certificate accounts

1,766,219

22,066

1.25%

2,059,702

34,761

1.69%

   Borrowed funds (f)

868,638

26,439

3.04%

850,171

26,105

3.07%

   Junior subordinated debentures

103,094

5,444

5.21%

103,094

5,717

5.47%

Total interest-bearing liabilities

5,924,497

61,162

1.03%

6,020,261

75,199

1.25%

Noninterest bearing checking

784,279

723,666

Noninterest bearing liabilities

87,193

109,483

Total liabilities

6,795,969

6,853,410

Shareholders' equity

1,135,488

1,159,096

Total liabilities and shareholders' equity

$  7,931,457

$  8,012,506

Net interest income/ Interest rate spread

258,714

3.32%

270,095

3.40%

Net interest-earning assets/ Net interest margin

$  1,434,878

3.52%

$  1,410,816

3.63%

Ratio of interest-earning assets to

 interest-bearing liabilities

 1.24X 

 1.23X 

(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.

(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.

(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.

(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.

(f) Average balances include FHLB borrowings and securities sold under agreements to repurchase.

(g) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 5.06% and 5.45%, respectively, Investment securities - 2.28% 

      and 3.24%, respectively, Interest-earning assets - 4.26% and 4.55%, respectively. GAAP basis net interest rate spreads were 3.23% and 

      3.30%, respectively, and GAAP basis net interest margins were 3.43% and 3.54%, respectively.

 

Northwest Bancshares, Inc. and Subsidiaries

Average balance sheet 

(Dollars in thousands)

The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and

average cost of liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of

assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages.

 Quarter ended 

 Quarter ended 

December 31, 2013

September 30, 2013

 Average 

 Interest 

 Avg. 

 Average 

 Interest 

 Avg. 

 Balance 

 Yield/ 

 Balance 

 Yield/ 

 Cost (g) 

 Cost (g) 

Assets:

Interest-earning assets:

   Loans receivable (a) (b) (d)

$  5,762,308

71,421

4.96%

$  5,703,527

72,051

5.05%

   Mortgage-backed securities (c) 

653,526

2,956

1.81%

701,510

3,113

1.78%

   Investment securities (c) (d) 

528,612

3,740

2.83%

545,005

3,972

2.92%

   FHLB stock

43,715

180

1.65%

47,650

120

1.01%

   Other interest-earning deposits

373,694

249

0.26%

376,699

253

0.26%

Total interest-earning assets 

7,361,855

78,546

4.27%

7,374,391

79,509

4.31%

Noninterest earning assets (e)

541,511

553,189

Total assets

$  7,903,366

$  7,927,580

Liabilities and shareholders' equity:

Interest-bearing liabilities:

   Savings accounts

$  1,191,476

919

0.31%

$  1,209,726

882

0.29%

   Interest-bearing demand accounts

851,356

144

0.07%

854,600

144

0.07%

   Money market accounts

1,160,520

783

0.27%

1,144,522

768

0.27%

   Certificate accounts

1,690,251

5,065

1.19%

1,735,898

5,356

1.22%

   Borrowed funds (f)

889,920

6,711

2.99%

864,315

6,690

3.07%

   Junior subordinated debentures

103,094

1,183

4.49%

103,094

1,436

5.45%

Total interest-bearing liabilities

5,886,617

14,805

1.00%

5,912,155

15,276

1.03%

Noninterest bearing checking

808,732

794,411

Noninterest bearing liabilities

64,338

91,385

Total liabilities

6,759,687

6,797,951

Shareholders' equity

1,143,679

1,129,629

Total liabilities and shareholders' equity 

$  7,903,366

$  7,927,580

Net interest income/ Interest rate spread

63,741

3.27%

64,233

3.28%

Net interest-earning assets/ Net interest margin

$  1,475,238

3.46%

$  1,462,236

3.48%

Ratio of interest-earning assets to

 interest-bearing liabilities

 1.25X 

 1.25X 

(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.

(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.

(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.

(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.

(f) Average balances include FHLB borrowings and securities sold under agreements to repurchase.

(g) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.92% and 5.01%, respectively, Investment securities - 2.12% 

       and 2.16%, respectively, Interest-earning assets - 4.19% and 4.23%, respectively. GAAP basis net interest rate spreads were 3.19% and 

      3.20%, respectively, and GAAP basis net interest margins were 3.38% and 3.40%, respectively.

SOURCE Northwest Bancshares, Inc.



RELATED LINKS

https://www.northwestsavingsbank.com