Northwest Bancshares, Inc. Announces Second Quarter 2013 Earnings and Dividend Increase

Jul 22, 2013, 11:42 ET from Northwest Bancshares, Inc.

WARREN, Pa., July 22, 2013 /PRNewswire/ -- Northwest Bancshares, Inc. (Nasdaq: NWBI) announced net income for the quarter ended June 30, 2013 of $13.5 million, or $0.15 per diluted share.  This represents a decrease of $2.9 million, or 17.6%, over the same quarter last year when net income was $16.4 million, or $0.17 per diluted share, and a decrease of $1.8 million, or 11.9%, compared to the quarter ended March 31, 2013 when net income was $15.3 million, or $0.17 per diluted share.  The annualized returns on average shareholders' equity and average assets for the current quarter were 4.79% and 0.68% compared to 5.63% and 0.82% for the same quarter last year and 5.45% and 0.78% for the quarter ended March 31, 2013. 

The Company also announced that its Board of Directors declared a $0.01 increase in its quarterly cash dividend to $0.13 per share payable on August 15, 2013, to shareholders of record as of August 1, 2013.  This represents the 75th consecutive quarter in which the Company has paid a cash dividend. 

In making this announcement, William J. Wagner, President and CEO, noted, "Although earnings for the quarter are disappointing, they were greatly impacted by several unusual items, including a $1.9 million write-down of a foreclosed property, $1.3 million in ATM replacement expense and a $553,000 decrease in mortgage banking income.  However, we are pleased to report that progress continues to be made in executing our strategy to improve shareholder value.  Loans receivable increased by $81.1 million, or 1.4 %, during the quarter which helped offset the ongoing pressure on our net interest margin created by the continued low interest rate environment.  Troubled assets continue to decrease in most categories as foreclosed real estate was down $2.8 million, or 11.5 %, during the quarter and loans 90 days or more delinquent decreased by $9.1 million, or 12.6%.  Loans charged-off for the quarter were at the third lowest level for the past four years.  Finally, we were pleased to repurchase 369,000 of our common shares at an average per share price of $12.09 and to increase our dividend from $0.12 to $0.13 per share.  Both of these initiatives were designed to return excess capital to our shareholders."

Net interest income decreased by $2.4 million, or 3.6%, to $63.3 million for the quarter ended June 30, 2013, from $65.7 million for the quarter ended June 30, 2012, as a $5.2 million decrease in interest income on loans receivable and a $726,000 decrease in interest income from investment securities was partially offset by a $3.8 million decrease in interest paid on deposit accounts.  These changes from the previous year were primarily due to continued competitive pricing pressure on new and existing credit relationships, adjustable rate loans and investment securities re-pricing at lower interest rates and higher yielding municipal securities being called and replaced with investment securities at lower rates.

The provision for loan losses increased by $442,000, or 8.9%, to $5.4 million for the quarter ended June 30, 2013, from $5.0 million for the quarter ended June 30, 2012.  As of June 30, 2013, the allowance for loan losses was $72.6 million, or 1.28% of total loans, compared to $70.1 million, or 1.24% of total loans, as of June 30, 2012 and $73.2 million, or 1.28% of total loans, as of December 31, 2012.  The increase in the provision for loan losses is partially attributable to increases in the historical loss factors and a slight increase in nonperforming loans to $120.6 million as of June 30, 2013, from $117.3 million as of June 30, 2012. 

Noninterest income decreased by $1.7 million, or 11.1%, to $13.4 million for the quarter ended June 30, 2013, from $15.1 million for the quarter ended June 30, 2012, due primarily to a $1.9 million write-down on a foreclosed condominium project bringing the remaining balance down to $4.9 million. Additionally, mortgage banking income decreased by $553,000, primarily as a result of the decision to hold more residential mortgage loan originations in our portfolio.  Partially offsetting these decreases was an increase in insurance commission income of $587,000 as a result of the purchase of the Bert Company, effective January 1, 2013.

Noninterest expense increased by $840,000, or 1.6%, to $52.8 million for the quarter ended June 30, 2013, from $52.0 million for the quarter ended June 30, 2012, due primarily to an increase in processing expense of $1.3 million, or 22.0%.  This increase is primarily the result of an incremental expense related to upgrading and replacing our ATM network. Additionally, compensation and employee benefits increased by $740,000, or 2.7%, due primarily to the addition of 38 full-time equivalent employees compared to last year as well as increased health insurance costs.  Partially offsetting these increases was a decrease in marketing expense of $1.7 million, which was due to the timing of various campaigns.

Net income for the six-month period ended June 30, 2013 of $28.8 million represents a decrease of $2.7 million, or 8.8%, compared to net income of $31.5 million for the six-month period ended June 30, 2012.  Diluted earnings per share for the six-month period ended June 30, 2013 decreased to $0.32 from $0.33 in the same period last year.  The annualized returns on average shareholders' equity and average assets were 5.12% and 0.73%, respectively, for the current six-month period compared to 5.44% and 0.79%, respectively, in the 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 166 community banking offices in Pennsylvania, New York, Ohio and Maryland and 52 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)

(Unaudited)

June 30,

December 31,

Assets

2013

2012

Cash and cash equivalents

$                      87,524

88,277

Interest-earning deposits in other financial institutions

359,997

362,794

Federal funds sold and other short-term investments

634

633

Marketable securities available-for-sale (amortized cost of $1,136,792 and 1,053,122)

1,144,953

1,079,074

Marketable securities held-to-maturity (fair value of $137,733 and $161,969)

133,439

155,081

Total cash, interest-earning deposits and marketable securities

1,726,547

1,685,859

Residential mortgage loans held for sale

296

15,441

Residential mortgage loans

2,414,347

2,400,208

Home equity loans 

1,064,716

1,076,637

Other consumer loans

223,514

235,367

Commercial real estate loans

1,591,226

1,585,833

Commercial loans

397,308

388,994

Total loans receivable

5,691,407

5,702,480

Allowance for loan losses

(72,590)

(73,219)

Loans receivable, net

5,618,817

5,629,261

Federal Home Loan Bank stock, at cost

48,240

46,834

Accrued interest receivable

23,171

23,313

Real estate owned, net

21,269

26,165

Premises and Equipment, net

140,573

138,824

Bank owned life insurance

139,210

137,044

Goodwill 

174,463

174,461

Other intangible assets

2,832

3,529

Other assets

68,692

77,310

Total assets

$                7,963,814

7,942,600

Liabilities and Shareholders' equity

Liabilities

Noninterest-bearing demand deposits

$                   796,137

755,429

Interest-bearing demand deposits

887,426

851,771

Savings deposits

2,337,183

2,271,311

Time deposits

1,762,346

1,886,089

Total deposits

5,783,092

5,764,600

Borrowed funds

857,344

860,047

Advances by borrowers for taxes and insurance

33,260

23,325

Accrued interest payable

1,043

888

Other liabilities

57,748

62,177

Junior subordinated debentures

103,094

103,094

Total liabilities

6,835,581

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, 93,877,847 shares

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

939

937

Paid-in-capital

613,520

613,249

Retained earnings

557,104

550,296

Unallocated common stock of Employee Stock Ownership Plan

(23,743)

(24,525)

Accumulated other comprehensive loss

(19,587)

(11,488)

Total shareholders' equity

1,128,233

1,128,469

Total liabilities and shareholders' equity

$                7,963,814

7,942,600

Equity to assets

14.17%

14.21%

Tangible common equity to assets

12.21%

12.23%

Book value per share

$                         12.02

$                         12.05

Tangible book value per share

$                         10.13

$                         10.14

Closing market price per share

$                         13.51

$                         12.14

Full time equivalent employees

2,056

2,042

Number of banking offices

166

165

 

  

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share amounts)

Quarter ended

June 30,

March 31,

2013

2012

2013

Interest income:

Loans receivable

$                      71,987

77,173

72,973

Mortgage-backed securities

3,308

4,409

3,441

Taxable investment securities

1,034

435

905

Tax-free investment securities

2,094

2,318

2,063

Interest-earning deposits

340

473

251

Total interest income

78,763

84,808

79,633

Interest expense:

Deposits

7,404

11,184

7,814

Borrowed funds

8,032

7,912

7,831

Total interest expense

15,436

19,096

15,645

Net interest income

63,327

65,712

63,988

Provision for loan losses

5,405

4,963

7,158

Net interest income after provision

for loan losses

57,922

60,749

56,830

Noninterest income:

Gain/ (loss) on sale of investments, net

19

(44)

101

Service charges and fees

9,037

8,951

8,691

Trust and other financial services income

2,263

2,018

2,204

Insurance commission income

2,190

1,603

2,295

Loss on real estate owned, net

(2,285)

(582)

(130)

Income from bank owned life insurance

1,088

1,107

1,085

Mortgage banking income

236

789

956

Other operating income

865

1,244

1,176

Total noninterest income

13,413

15,086

16,378

Noninterest expense:

Compensation and employee benefits

28,156

27,416

27,930

Premises and occupancy costs

5,744

5,483

6,153

Office operations

3,866

3,340

3,268

Processing expenses

7,390

6,059

5,853

Marketing expenses

2,093

3,829

1,900

Federal deposit insurance premiums

1,424

1,418

1,438

Professional services

1,199

1,500

1,693

Amortization of intangible assets

349

279

348

Real estate owned expense

600

571

599

Other expense

1,985

2,071

2,289

Total noninterest expense

52,806

51,966

51,471

Income before income taxes

18,529

23,869

21,737

Income tax expense

5,051

7,508

6,439

Net income

$                      13,478

16,361

15,298

Basic earnings per share

$                          0.15

0.17

0.17

Diluted earnings per share

$                          0.15

0.17

0.17

Annualized return on average equity

4.79%

5.63%

5.45%

Annualized return on average assets

0.68%

0.82%

0.78%

Basic common shares outstanding

90,423,717

94,294,956

90,403,909

Diluted common shares outstanding

90,917,136

94,500,877

90,878,903

 

  

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share amounts)

Six months ended

June 30,

2013

2012

Interest income:

Loans receivable

$                    144,960

155,117

Mortgage-backed securities

6,749

9,100

Taxable investment securities

1,939

1,008

Tax-free investment securities

4,157

4,764

Interest-earning deposits

591

853

Total interest income

158,396

170,842

Interest expense:

Deposits

15,218

24,128

Borrowed funds

15,863

15,811

Total interest expense

31,081

39,939

Net interest income

127,315

130,903

Provision for loan losses

12,563

11,250

Net interest income after provision

for loan losses

114,752

119,653

Noninterest income:

Impairment losses on securities

-

(545)

Noncredit related losses on securities not expected

to be sold (recognized in other comprehensive income)

-

307

Net impairment losses

-

(238)

Gain/ (loss) on sale of investments, net

120

-

Service charges and fees

17,728

17,591

Trust and other financial services income

4,467

4,134

Insurance commission income

4,485

3,321

Loss on real estate owned, net

(2,415)

(1,652)

Income from bank owned life insurance

2,173

2,224

Mortgage banking income

1,192

1,320

Other operating income

2,041

2,241

Total noninterest income

29,791

28,941

Noninterest expense:

Compensation and employee benefits

56,086

55,254

Premises and occupancy costs

11,897

11,231

Office operations

7,134

6,664

Processing expenses

13,243

12,201

Marketing expenses

3,993

5,865

Federal deposit insurance premiums

2,862

3,038

Professional services

2,892

3,197

Amortization of intangible assets

697

574

Real estate owned expense

1,199

1,311

Other expense

4,274

3,907

Total noninterest expense

104,277

103,242

Income before income taxes

40,266

45,352

Income tax expense

11,490

13,810

Net income

$                      28,776

31,542

Basic earnings per share

$                          0.32

0.33

Diluted earnings per share

$                          0.32

0.33

Annualized return on average equity

5.12%

5.44%

Annualized return on average assets

0.73%

0.79%

Basic common shares outstanding

90,413,780

94,205,239

Diluted common shares outstanding

90,898,038

94,583,105

   

Northwest Bancshares, Inc. and Subsidiaries

Asset quality

(Dollars in thousands)

June 30, 2013

 March 31,     2013 

June 30, 2012

December 31,  2012

Non-accrual loans current:

Residential mortgage loans

$                1,564

1,728

-

797

Home equity loans

859

1,050

-

635

Other consumer loans

69

87

-

44

Commercial real estate loans

27,882

25,203

16,773

24,960

Commercial loans

15,687

9,069

10,168

5,424

Total non-accrual loans current

$              46,061

37,137

26,941

31,860

Non-accrual loans delinquent 30 days to 59 days:

Residential mortgage loans

$                     18

1,789

-

-

Home equity loans

81

222

-

-

Other consumer loans

14

26

-

-

Commercial real estate loans

4,536

5,105

3,230

5,549

Commercial loans

172

2,631

489

2,002

Total non-accrual loans delinquent 30 days to 59 days

$                4,821

9,773

3,719

7,551

Non-accrual loans delinquent 60 days to 89 days:

Residential mortgage loans

$                1,964

1,969

-

-

Home equity loans

198

330

-

-

Other consumer loans

60

74

-

-

Commercial real estate loans

1,848

2,506

1,600

2,802

Commercial loans

2,104

1,318

344

9,652

Total non-accrual loans delinquent 60 days to 89 days

$                6,174

6,197

1,944

12,454

Non-accrual loans delinquent 90 days or more:

Residential mortgage loans

$              23,730

24,416

25,336

24,286

Home equity loans

8,607

7,967

9,770

8,479

Other consumer loans

1,706

1,802

1,580

1,936

Commercial real estate loans

20,872

22,204

33,956

24,550

Commercial loans

8,595

16,246

14,008

9,096

Total non- accrual loans delinquent 90 days or more

$             63,510

72,635

84,650

68,347

Total non-accrual loans

$           120,566

125,742

117,254

120,212

June 30,

March 31,

June 30,

December 31,

2013

2013

2012

2012

Nonperforming loans

$           120,566

125,742

117,254

120,212

Real estate owned, net

21,269

24,035

30,470

26,165

Nonperforming assets

$           141,835

149,777

147,724

146,377

Non-accrual troubled debt restructuring *

$             42,501

46,109

28,342

41,166

Accruing troubled debt restructuring

44,016

45,256

50,129

48,278

Total troubled debt restructuring

$             86,517

91,365

78,471

89,444

Nonperforming loans to total loans

2.12%

2.24%

2.07%

2.11%

Nonperforming assets to total assets

1.78%

1.87%

1.84%

1.84%

Allowance for loan losses to total loans

1.28%

1.28%

1.24%

1.28%

Allowance for loan losses to nonperforming loans

60.21%

57.27%

59.79%

60.91%

* 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)

June 30,

March 31,

June 30,

December 31,

2013

*

2013

*

2012

*

2012

*

Loans delinquent 30 days to 59 days:

Residential mortgage loans

77

$         3,741

0.2%

410

$       33,054

1.4%

70

$         4,470

0.2%

430

32,921

1.4%

Home equity loans

174

4,993

0.5%

204

6,254

0.6%

153

5,842

0.5%

224

6,534

0.6%

Consumer loans

1,026

4,334

1.9%

789

3,684

1.7%

847

3,513

1.5%

1,122

5,456

2.3%

Commercial real estate loans

74

7,982

0.5%

93

12,833

0.8%

58

8,149

0.5%

87

13,001

0.8%

Commercial loans

31

952

0.2%

49

4,620

1.2%

33

1,839

0.5%

41

3,233

0.8%

Total loans delinquent 30 days to 59 days

1,382

$       22,002

0.4%

1,545

$       60,445

1.1%

1,161

$      23,813

0.4%

1,904

61,145

1.1%

Loans delinquent 60 days to 89 days:

Residential mortgage loans

101

$         8,516

0.4%

54

$         4,577

0.2%

83

$         6,932

0.3%

100

9,387

0.4%

Home equity loans

50

1,361

0.1%

67

2,321

0.2%

72

2,824

0.3%

65

1,977

0.2%

Consumer loans

368

1,470

0.7%

302

1,145

0.5%

319

1,273

0.5%

448

1,830

0.8%

Commercial real estate loans

41

3,170

0.2%

32

4,448

0.3%

23

3,081

0.2%

33

4,596

0.3%

Commercial loans

18

2,389

0.6%

19

1,654

0.4%

16

980

0.2%

17

10,158

2.5%

Total loans delinquent 60 days to 89 days

578

$       16,906

0.3%

474

$      14,145

0.3%

513

$      15,090

0.3%

663

27,948

0.5%

Loans delinquent 90 days or more:

Residential mortgage loans

250

$       23,730

1.0%

233

$      24,416

1.0%

265

$      25,336

1.0%

266

24,286

1.0%

Home equity loans

194

8,607

0.8%

179

7,967

0.8%

180

9,770

0.9%

175

8,479

0.8%

Consumer loans

379

1,706

0.8%

374

1,802

0.8%

308

1,580

0.7%

427

1,936

0.8%

Commercial real estate loans

128

20,872

1.3%

127

22,204

1.4%

128

33,956

2.3%

146

24,550

1.6%

Commercial loans

53

8,595

2.2%

51

16,246

4.1%

57

14,008

3.5%

61

9,096

2.2%

Total loans delinquent 90 days or more

1,004

$       63,510

1.1%

964

$      72,635

1.3%

938

$      84,650

1.5%

1,075

68,347

1.2%

Total loans delinquent

2,964

$     102,418

1.8%

2,983

$    147,225

2.6%

2,612

$   123,553

2.2%

3,642

157,440

2.8%

* - 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 June 30, 2013 

(Dollars in thousands)

Recorded

investment

Special

in loans

Pass

mention

Substandard

 Doubtful 

 Loss 

receivable

Personal Banking:

Residential mortgage loans

$         2,396,268

-

17,089

-

1,286

2,414,643

Home equity loans

1,056,154

-

8,562

-

-

1,064,716

Other consumer loans

222,365

-

1,149

-

-

223,514

Total Personal Banking

3,674,787

-

26,800

-

1,286

3,702,873

Business Banking:

Commercial real estate loans

1,382,750

60,700

145,052

2,724

-

1,591,226

Commercial loans

329,619

13,089

52,382

2,218

-

397,308

Total Business Banking

1,712,369

73,789

197,434

4,942

-

1,988,534

$         5,387,156

73,789

224,234

4,942

1,286

5,691,407

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

1,068,183

-

8,454

-

-

1,076,637

Other consumer loans

234,106

-

1,261

-

-

235,367

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

Six months ended

June 30,

June 30,

2013

2012

2013

2012

Allowance for loan losses 

Beginning balance

$             72,009

72,941

73,219

71,138

Provision

5,405

4,963

12,563

11,250

Charge-offs residential mortgage

(777)

(1,219)

(1,456)

(2,262)

Charge-offs home equity

(805)

(589)

(1,175)

(1,481)

Charge-offs other consumer

(1,280)

(1,504)

(2,684)

(2,791)

Charge-offs commercial real estate

(2,696)

(2,959)

(6,686)

(4,432)

Charge-offs commercial

(542)

(2,719)

(3,222)

(3,368)

Recoveries

1,276

1,196

2,031

2,056

Ending balance

$             72,590

70,110

72,590

70,110

Net charge-offs to average loans, annualized

0.34%

0.55%

0.47%

0.44%

 

     

Northwest Bancshares, Inc. and Subsidiaries

Municipal securities portfolio

(Dollars in thousands)

June 30, 2013

As a %

Market

Amortized

Unrealized

of book

 value 

cost

gain/ (loss)

value

Municipal securities by state:

Pennsylvania

School districts

$                 88,851

86,858

1,993

47.4%

General obligations

31,662

30,843

819

16.8%

Revenue bonds

2,944

2,949

(5)

1.6%

Total Pennsylvania

123,457

120,650

2,807

65.8%

New York

22,169

21,776

393

11.9%

Ohio

6,107

5,974

133

3.3%

All other states

36,000

34,707

1,293

19.0%

$              187,733

183,107

4,626

December 31, 2012

As a %

Market

Amortized

Unrealized

of book

 value 

cost

gain

value

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 June 30, 

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)

$  5,623,784

72,548

5.16%

5,627,459

77,732

5.53%

   Mortgage-backed securities (c) 

726,583

3,308

1.82%

761,616

4,409

2.32%

   Investment securities (c) (d) 

531,802

4,255

3.20%

311,087

4,001

5.14%

   FHLB stock

48,110

34

0.28%

46,916

25

0.21%

   Other interest-earning deposits

513,930

340

0.26%

679,217

473

0.28%

Total interest-earning assets 

7,444,209

80,485

4.32%

7,426,295

86,640

4.67%

Noninterest earning assets (e)

531,771

592,004

Total assets

$  7,975,980

8,018,299

Liabilities and shareholders' equity:

Interest-bearing liabilities:

   Savings accounts

$  1,209,783

900

0.30%

1,146,989

1,034

0.36%

   Interest-bearing demand accounts

873,804

149

0.07%

831,414

240

0.12%

   Money market accounts

1,121,579

748

0.27%

1,021,485

878

0.35%

   Certificate accounts

1,791,030

5,607

1.26%

2,088,538

9,032

1.74%

   Borrowed funds (f)

866,476

6,612

3.06%

846,244

6,490

3.08%

   Junior subordinated debentures

103,094

1,420

5.45%

103,094

1,422

5.46%

Total interest-bearing liabilities

5,965,766

15,436

1.04%

6,037,764

19,096

1.27%

Noninterest bearing checking

778,468

710,085

Noninterest bearing liabilities

102,191

107,033

Total liabilities

6,846,425

6,854,882

Shareholders' equity

1,129,555

1,163,417

Total liabilities and shareholders' equity

$  7,975,980

8,018,299

Net interest income/ Interest rate spread

65,049

3.28%

67,544

3.40%

Net interest-earning assets/ Net interest margin

$  1,478,443

3.50%

1,388,531

3.64%

Ratio of interest-earning assets to

 interest-bearing liabilities

 1.25X 

  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 - 5.12% and 5.49%, respectively, Investment securities - 2.35% 

       and 3.54%, respectively, Interest-earning assets - 4.23% and 4.57%, respectively. GAAP basis net interest rate spreads were 3.19% and 

      3.30%, respectively, and GAAP basis net interest margins were 3.40% 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.

 Six months ended June 30, 

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)

$  5,631,110

146,075

5.19%

5,603,311

156,209

5.58%

   Mortgage-backed securities (c) 

726,057

6,749

1.86%

754,285

9,100

2.41%

   Investment securities (c) (d) 

500,881

8,334

3.33%

327,074

8,337

5.10%

   FHLB stock

47,492

71

0.30%

47,581

25

0.11%

   Other interest-earning deposits

457,871

591

0.26%

668,982

853

0.25%

Total interest-earning assets 

7,363,411

161,820

4.40%

7,401,233

174,524

4.72%

Noninterest earning assets (e)

584,030

603,822

Total assets

$  7,947,441

8,005,055

Liabilities and shareholders' equity:

Interest-bearing liabilities:

   Savings accounts

$  1,195,216

1,794

0.30%

1,123,651

2,140

0.38%

   Interest-bearing demand accounts

857,121

289

0.07%

808,675

467

0.12%

   Money market accounts

1,114,553

1,490

0.27%

998,840

1,843

0.37%

   Certificate accounts

1,820,244

11,645

1.29%

2,162,679

19,678

1.83%

   Borrowed funds (f)

860,017

13,038

3.06%

840,043

12,967

3.10%

   Junior subordinated debentures

103,094

2,825

5.45%

103,094

2,844

5.46%

Total interest-bearing liabilities

5,950,245

31,081

1.05%

6,036,982

39,939

1.33%

Noninterest bearing checking

766,578

701,492

Noninterest bearing liabilities

96,297

107,646

Total liabilities

6,813,120

6,846,120

Shareholders' equity

1,134,321

1,158,935

Total liabilities and shareholders' equity

$  7,947,441

8,005,055

Net interest income/ Interest rate spread

130,739

3.35%

134,585

3.39%

Net interest-earning assets/ Net interest margin

$  1,413,166

3.55%

1,364,251

3.64%

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 - 5.15% and 5.54%, respectively, Investment securities - 2.43% 

       and 3.53%, respectively, Interest-earning assets - 4.30% and 4.62%, respectively. GAAP basis net interest rate spreads were 3.25% and 

      3.29%, respectively, and GAAP basis net interest margins were 3.46% 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 

June 30, 2013

March 31, 2013

 Average 

 Interest 

 Avg. 

 Average 

 Interest 

 Avg. 

 Balance 

 Yield/ 

 Balance 

 Yield/ 

 Cost (g) 

 Cost (g) 

Assets:

Interest-earning assets:

   Loans receivable (a) (b) (d)

$  5,623,784

72,548

5.16%

5,638,332

73,527

5.22%

   Mortgage-backed securities (c) 

726,583

3,308

1.82%

725,524

3,441

1.90%

   Investment securities (c) (d) 

531,802

4,255

3.20%

470,386

4,079

3.47%

   FHLB stock

48,110

34

0.28%

46,868

38

0.32%

   Other interest-earning deposits

513,930

340

0.26%

452,385

251

0.22%

Total interest-earning assets 

7,444,209

80,485

4.32%

7,333,495

81,336

4.44%

Noninterest earning assets (e)

531,771

585,516

Total assets

$  7,975,980

7,919,011

Liabilities and shareholders' equity:

Interest-bearing liabilities:

   Savings accounts

$  1,209,783

900

0.30%

1,180,487

894

0.31%

   Interest-bearing demand accounts

873,804

149

0.07%

840,264

139

0.07%

   Money market accounts

1,121,579

748

0.27%

1,107,522

742

0.27%

   Certificate accounts

1,791,030

5,607

1.26%

1,849,782

6,039

1.32%

   Borrowed funds (f)

866,476

6,612

3.06%

853,487

6,426

3.05%

   Junior subordinated debentures

103,094

1,420

5.45%

103,094

1,405

5.45%

Total interest-bearing liabilities

5,965,766

15,436

1.04%

5,934,636

15,645

1.07%

Noninterest bearing checking

778,468

768,071

Noninterest bearing liabilities

102,191

77,106

Total liabilities

6,846,425

6,779,813

Shareholders' equity

1,129,555

1,139,198

Total liabilities and shareholders' equity 

$  7,975,980

7,919,011

Net interest income/ Interest rate spread

65,049

3.28%

65,691

3.37%

Net interest-earning assets/ Net interest margin

$  1,478,443

3.50%

1,398,859

3.58%

Ratio of interest-earning assets to

 interest-bearing liabilities

 1.25X 

 1.24X 

(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 - 5.12% and 5.18%, respectively, Investment securities - 2.35% 

       and 2.52%, respectively, Interest-earning assets - 4.23% and 4.35%, respectively. GAAP basis net interest rate spreads were 3.19% and 

      3.28%, respectively, and GAAP basis net interest margins were 3.40% and 3.49%, respectively.

 

SOURCE Northwest Bancshares, Inc.



RELATED LINKS

http://www.northwestsavingsbank.com