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

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.



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http://www.northwestsavingsbank.com

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