Northwest Bancshares, Inc. Announces Second Quarter 2014 Earnings and Dividend Declaration

WARREN, Pa., July 21, 2014 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended June 30, 2014 of $12.7 million, or $0.14 per diluted share.  This represents a decrease of $763,000, or 5.7%, compared to the same quarter last year when net income was $13.5 million, or $0.15 per diluted share, and a decrease of $1.9 million, or 13.1%, compared to the quarter ended March 31, 2014 when net income was $14.6 million, or $0.16 per diluted share.  The annualized returns on average shareholders' equity and average assets for the quarter ended June 30, 2014 were 4.77% and 0.64% compared to 4.79% and 0.68% for the same quarter last year and 5.16% and 0.75% for the quarter ended March 31, 2014. 

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.13 per share payable on August 14, 2014, to shareholders of record as of July 31, 2014.  This represents the 79th consecutive quarter in which the Company has paid a cash dividend. 

In making this announcement, William J. Wagner, President and CEO, noted, "The deterioration of several commercial credits negatively impacted what was otherwise consistent core earnings highlighted by a 2.1% increase in net interest income compared to the previous quarter. This improvement was the result of loan growth of nearly $35 million and an increase in checking accounts of more than $38 million. Looking at the other elements of income, we are pleased to report that noninterest income increased by 27.7 % while noninterest expense was held to just a 1.9% increase over the previous year. Finally, we were excited to be recognized for the fourth time in the last five years by J.D. Power & Associates as the 'Highest Rated Financial Institution for Customer Satisfaction in the Mid-Atlantic Region'. Further recognition was received from Forbes who named Northwest as 'One of America's 50 Most Trustworthy Financial Companies' and from Keefe, Bruyette & Woods who included Northwest as one of 31 companies on their 'Bank Honor Roll'."

Net interest income decreased by $1.2 million, or 1.9%, to $62.1 million for the quarter ended June 30, 2014, from $63.3 million for the quarter ended June 30, 2013, as interest income on both loans receivable and investment securities decreased from the prior year. These decreases were partially offset by a $1.2 million decrease in interest paid on deposit accounts and borrowed funds. These changes from the previous year were due primarily to the continued low level of market interest rates. Net interest income, however, improved by $1.3 million, or 2.1%, over the prior quarter due primarily to growth of $24.7 million, or 1.2%, in commercial loans.

The provision for loan losses increased by $2.9 million, or 53.3%, to $8.3 million for the quarter ended June 30, 2014, from $5.4 million for the quarter ended June 30, 2013 and increased by $800,000 compared to the quarter ended March 31, 2014.  This increase is due primarily to the deterioration of several commercial loans which required a provision of $5.5 million.  The total required provision for the quarter was lessened by the continued improvement in overall asset quality with loans 90 days or more delinquent decreasing $12.2 million, or 19.3%, and total nonaccrual loans decreasing $23.8 million, or 19.7%, compared to a year ago and the continued recovery of previously charged-off loans. Net charge-offs for the current quarter were $13.1 million, or 0.90% of average loans compared to $4.8 million, or 0.34% for the same quarter last year.  This increase resulted from the charge-off of two commercial loans for $6.8 million and $1.3 million, respectively.  At June 30, 2014, the allowance for loan losses was $71.4 million, or 1.21% of total loans, compared to $72.6 million, or 1.28% of total loans, at June 30, 2013. 

Noninterest income increased by $3.7 million, or 27.7%, to $17.1 million for the quarter ended June 30, 2014, from $13.4 million for the quarter ended June 30, 2013.  This increase is due primarily to a $1.7 million decrease in the loss on real estate owned and an increase in other operating income of $823,000, as a result of increased Federal Home Loan Bank dividends. Additionally, trust and other financial services income increased by $792,000, due primarily to the acquisition of Evans Capital Management, Inc. on January 1, 2014. 

Noninterest expense increased by $1.0 million, or 1.9%, to $53.8 million for the quarter ended June 30, 2014, from $52.8 million for the quarter ended June 30, 2013. This increase was due primarily to an $838,000 increase in marketing expense as the result of robust marketing activity in the current quarter to promote loan and checking growth. Additionally, professional services increased by $576,000, due primarily to compliance related consulting engagements as we continue to strengthen our regulatory compliance management system.

Net income for the six-month period ended June 30, 2014 of $27.4 million represents a decrease of $1.4 million, or 4.9%, compared to net income of $28.8 million for the six-month period ended June 30, 2013.  Diluted earnings per share for the six-month period ended June 30, 2014 decreased to $0.30 per share from $0.32 per share in the same period last year.  The annualized returns on average shareholders' equity and average assets were 4.97% and 0.70%, respectively, for the current six-month period compared to 5.12% and 0.73%, 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 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 ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Savings Bank 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


2014


2013

Cash and cash equivalents


$                      97,467


98,122

Interest-earning deposits in other financial institutions


287,867


293,149

Federal funds sold and other short-term investments


634


634

Marketable securities available-for-sale (amortized cost of $972,258 and $1,022,078)

977,786


1,016,767

Marketable securities held-to-maturity (fair value of $117,670 and $124,061)


114,154


121,366


Total cash, interest-earning deposits and marketable securities


1,477,908


1,530,038












Residential mortgage loans held for sale


-


221

Residential mortgage loans


2,485,740


2,482,783

Home equity loans 

1,066,943


1,083,939

Other consumer loans

231,974


228,348

Commercial real estate loans


1,694,882


1,608,399

Commercial loans

406,195


402,601


Total loans receivable


5,885,734


5,806,291

Allowance for loan losses


(71,442)


(71,348)


Loans receivable, net


5,814,292


5,734,943












Federal Home Loan Bank stock, at cost


43,986


43,715

Accrued interest receivable


21,756


21,821

Real estate owned, net


14,915


18,203

Premises and Equipment, net


145,344


146,139

Bank owned life insurance


142,223


140,172

Goodwill and other intangible assets


175,988


174,463

Other intangible assets


3,694


2,319

Other assets


62,210


69,663


Total assets


$              7,902,316


7,881,476












Liabilities and Shareholders' equity





Liabilities




Noninterest-bearing demand deposits


$                   872,661


789,135

Interest-bearing demand deposits


901,486


852,809

Money market deposit accounts


1,183,228


1,167,954

Savings deposits


1,236,307


1,191,584

Time deposits


1,580,240


1,667,397


Total deposits


5,773,922


5,668,879

Borrowed funds


869,335


881,645

Advances by borrowers for taxes and insurance


37,677


26,669

Accrued interest payable

816


888

Other liabilities

45,000


43,499

Junior subordinated debentures



103,094


103,094


Total liabilities


6,829,844


6,724,674












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, 94,949,695 shares and 94,243,713 shares issued and outstanding, respectively




949


943

Paid-in-capital


626,213


619,678

Retained earnings


472,726


571,164

Unallocated common stock of Employee Stock Ownership Plan

(22,200)


(23,083)

Accumulated other comprehensive loss



(5,216)


(11,900)


Total shareholders' equity



1,072,472


1,156,802


Total liabilities and shareholders' equity


$              7,902,316


7,881,476















Equity to assets

13.57%


14.68%




Tangible common equity to assets

11.56%


12.72%




Book value per share

$                      11.30


12.27




Tangible book value per share

$                        9.40


10.40




Closing market price per share

$                      13.57


14.78




Full time equivalent employees

2,047


2,043




Number of banking offices

165


165

 

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share amounts)
















Quarter ended






June 30,


March 31,






2014


2013


2014

Interest income:








Loans receivable


$         70,797


71,987


69,373


Mortgage-backed securities


2,666


3,308


2,793


Taxable investment securities


1,014


1,034


1,080


Tax-free investment securities


1,598


2,094


1,655


Interest-earning deposits


286


340


200



Total interest income


76,361


78,763


75,101











Interest expense:








Deposits


6,421


7,404


6,490


Borrowed funds


7,793


8,032


7,714



Total interest expense


14,214


15,436


14,204













Net interest income


62,147


63,327


60,897

Provision for loan losses


8,285


5,405


7,485



Net interest income after provision









for loan losses


53,862


57,922


53,412











Noninterest income:








Gain on sale of investments


349


19


3,348


Service charges and fees


9,042


9,037


8,408


Trust and other financial services income


3,055


2,263


3,047


Insurance commission income


2,237


2,190


2,564


Loss on real estate owned, net


(562)


(2,285)


(135)


Income from bank owned life insurance


1,050


1,088


1,001


Mortgage banking income


265


236


249


Other operating income


1,688


865


1,175



Total noninterest income


17,124


13,413


19,657











Noninterest expense:








Compensation and employee benefits


28,543


28,156


27,972


Premises and occupancy costs


5,740


5,744


6,557


Office operations


3,868


3,866


3,757


Processing expenses


6,639


7,390


6,589


Marketing expenses


2,931


2,093


1,637


Federal deposit insurance premiums


1,338


1,424


1,297


Professional services


1,775


1,199


2,062


Amortization of intangible assets


331


349


331


Real estate owned expense


459


600


639


Other expense


2,182


1,985


2,322



Total noninterest expense


53,806


52,806


53,163













Income before income taxes


17,180


18,529


19,906


Income tax expense


4,465


5,051


5,266














Net income


$         12,715


13,478


14,640











Basic earnings per share


$              0.14


0.15


0.16











Diluted earnings per share


$              0.14


0.15


0.16











Annualized return on average equity


4.77%


4.79%


5.16%

Annualized return on average assets


0.64%


0.68%


0.75%











Basic common shares outstanding


91,491,654


90,423,717


91,154,998

Diluted common shares outstanding


92,531,142


90,917,136


92,353,312

 

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share amounts)














Six months ended 






June 30,






2014


2013

Interest income:






Loans receivable


$        140,170


144,960


Mortgage-backed securities


5,459


6,749


Taxable investment securities


2,094


1,939


Tax-free investment securities


3,253


4,157


Interest-earning deposits


486


591



Total interest income


151,462


158,396









Interest expense:






Deposits


12,911


15,218


Borrowed funds


15,507


15,863



Total interest expense


28,418


31,081











Net interest income


123,044


127,315

Provision for loan losses


15,770


12,563



Net interest income after provision







for loan losses


107,274


114,752









Noninterest income:






Gain on sale of investments


3,697


120


Service charges and fees


17,450


17,728


Trust and other financial services income


6,102


4,467


Insurance commission income


4,801


4,485


Loss on real estate owned, net


(697)


(2,415)


Income from bank owned life insurance


2,051


2,173


Mortgage banking income


514


1,192


Other operating income


2,863


2,041



Total noninterest income


36,781


29,791









Noninterest expense:






Compensation and employee benefits


56,515


56,086


Premises and occupancy costs


12,297


11,897


Office operations


7,625


7,134


Processing expenses


13,228


13,243


Marketing expenses


4,568


3,993


Federal deposit insurance premiums


2,635


2,862


Professional services


3,837


2,892


Amortization of intangible assets


662


697


Real estate owned expense


1,098


1,199


Other expense


4,504


4,274



Total noninterest expense


106,969


104,277











Income before income taxes


37,086


40,266


Income tax expense


9,731


11,490












Net income


$           27,355


28,776









Basic earnings per share


$               0.30


0.32









Diluted earnings per share


$               0.30


0.32









Annualized return on average equity


4.97%


5.12%

Annualized return on average assets


0.70%


0.73%









Basic common shares outstanding


91,324,169


90,413,780

Diluted common shares outstanding


92,442,631


90,898,038

 

 

Northwest Bancshares, Inc. and Subsidiaries



Asset quality



(Dollars in thousands)


















June 30,

2014


March 31, 

2014


June 30,
2013


December 31,

2013















Nonaccrual loans current:












Residential mortgage loans


$                1,112


1,064


1,564


1,361




Home equity loans


1,682


1,771


859


835




Other consumer loans


112


136


69


98




Commercial real estate loans


24,935


26,564


27,882


17,866




Commercial loans


10,494


19,603


15,687


13,357



Total nonaccrual loans current


$             38,335


49,138


46,061


33,517















Nonaccrual loans delinquent 30 days to 59 days:












Residential mortgage loans


$                     107


741


18


427




Home equity loans


75


155


81


404




Other consumer loans


60


36


14


15




Commercial real estate loans


3,788


4,118


4,536


3,468




Commercial loans


162


5


172


7,650



Total nonaccrual loans delinquent 30 days to 59 days


$                4,192


5,055


4,821


11,964















Nonaccrual loans delinquent 60 days to 89 days:












Residential mortgage loans


$                     936


1,914


1,964


864




Home equity loans


274


485


198


280




Other consumer loans


40


99


60


87




Commercial real estate loans


1,584


902


1,848


2,036




Commercial loans


122


95


2,104


716



Total nonaccrual loans delinquent 60 days to 89 days


$                2,956


3,495


6,174


3,983















Nonaccrual loans delinquent 90 days or more:












Residential mortgage loans


$             21,994


20,564


23,730


24,625




Home equity loans


7,810


8,420


8,607


8,344




Other consumer loans


1,966


1,818


1,706


2,057




Commercial real estate loans


15,290


16,098


20,872


18,433




Commercial loans


4,214


4,494


8,595


4,298



Total nonaccrual loans delinquent 90 days or more


$             51,274


51,394


63,510


57,757















Total nonaccrual loans


$             96,757


109,082


120,566


107,221






























June 30,


March 31,


June 30,


December 31,






2014


2014


2013


2013















Nonaccrual loans


$             96,757


109,082


120,566


107,221



Loans 90 days past maturity and still accruing


271


709


871


690



   Nonperforming loans


97,028


109,791


121,437


107,911



Real estate owned, net


14,915


16,692


21,269


18,203



   Nonperforming assets


$          111,943


126,483


142,706


126,114















Nonaccrual troubled debt restructuring *


$             23,949


34,268


42,501


28,889



Accruing troubled debt restructuring


39,844


40,243


44,016


50,277



Total troubled debt restructuring


$             63,793


74,511


86,517


79,166















Nonperforming loans to total loans


1.65%


1.88%


2.13%


1.86%















Nonperforming assets to total assets


1.42%


1.59%


1.79%


1.60%















Allowance for loan losses to total loans


1.21%


1.30%


1.28%


1.23%















Allowance for loan losses to nonperforming loans


73.63%


69.44%


59.78%


66.12%















* 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,




2014

*


2014

*


2013

*


2013

*

Loans delinquent 30 days to 59 days:

















Residential mortgage loans

71

$         3,842

0.2%


352

$      26,874

1.1%


77

$         3,741

0.2%


374

$      27,486

1.1%


Home equity loans

123

4,193

0.4%


172

5,449

0.5%


174

4,993

0.5%


213

6,946

0.6%


Consumer loans

953

4,355

1.9%


749

3,412

1.5%


1,026

4,334

1.9%


1,010

4,515

2.0%


Commercial real estate loans

79

8,247

0.5%


84

26,518

1.6%


74

7,982

0.5%


73

8,449

0.5%


Commercial loans

35

1,146

0.3%


41

1,375

0.3%


31

952

0.2%


34

9,243

2.3%

Total loans delinquent 30 days to 59 days

1,261

$      21,783

0.4%


1,398

$      63,628

1.1%


1,382

22,002

0.4%


1,704

$      56,639

1.0%


















Loans delinquent 60 days to 89 days:

















Residential mortgage loans

81

$         6,024

0.2%


46

$         3,674

0.1%


101

$         8,516

0.4%


103

$         7,568

0.3%


Home equity loans

45

1,210

0.1%


42

1,437

0.1%


50

1,361

0.1%


67

2,243

0.2%


Consumer loans

363

1,454

0.6%


330

1,289

0.6%


368

1,470

0.7%


507

1,866

0.8%


Commercial real estate loans

31

2,267

0.1%


33

2,570

0.2%


41

3,170

0.2%


35

3,968

0.2%


Commercial loans

16

709

0.2%


9

473

0.1%


18

2,389

0.6%


16

1,555

0.4%

Total loans delinquent 60 days to 89 days

536

$      11,664

0.2%


460

$         9,443

0.2%


578

16,906

0.3%


728

$      17,200

0.3%


















Loans delinquent 90 days or more:

















Residential mortgage loans

251

$      21,994

0.9%


236

$      20,564

0.8%


250

$      23,730

1.0%


273

$      24,625

1.0%


Home equity loans

168

7,810

0.7%


176

8,420

0.8%


194

8,607

0.8%


171

8,344

0.8%


Consumer loans

412

1,966

0.8%


391

1,818

0.8%


379

1,706

0.8%


470

2,057

0.9%


Commercial real estate loans

118

15,290

0.9%


116

16,098

1.0%


128

20,872

1.3%


124

18,433

1.1%


Commercial loans

34

4,214

1.0%


33

4,494

1.1%


53

8,595

2.2%


31

4,298

1.1%

Total loans delinquent 90 days or more

983

$      51,274

0.9%


952

$      51,394

0.9%


1,004

63,510

1.1%


1,069

$      57,757

1.0%


















Total loans delinquent

2,780

$      84,721

1.4%


2,810

$   124,465

2.1%


2,964

$   102,418

1.8%


3,501

$   131,596

2.3%



















* - 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, 2014


(Dollars in thousands)
































Recorded
















investment








Special








in loans






Pass


mention


Substandard


 Doubtful 


 Loss 


receivable


Personal Banking:
















Residential mortgage loans


$         2,468,039


-


16,313


-


1,388


2,485,740




Home equity loans


1,059,133


-


7,810


-


-


1,066,943




Other consumer loans


230,707


-


1,267


-


-


231,974



Total Personal Banking


3,757,879


-


25,390


-


1,388


3,784,657


















Business Banking:
















Commercial real estate loans


1,489,428


56,711


145,622


3,121


-


1,694,882




Commercial loans


354,424


16,588


31,432


3,751


-


406,195



Total Business Banking


1,843,852


73,299


177,054


6,872


-


2,101,077






















$         5,601,731


73,299


202,444


6,872


1,388


5,885,734


































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

Allowance for loan losses

(Dollars in thousands)














Quarter ended


Six months ended




June 30, 


June 30, 




2014


2013


2014


2013

Allowance for loan losses 










Beginning balance


$             76,234


72,009


71,348


73,219


Provision


8,285


5,405


15,770


12,563


Charge-offs residential mortgage


(883)


(777)


(1,342)


(1,456)


Charge-offs home equity


(593)


(805)


(965)


(1,175)


Charge-offs other consumer


(1,450)


(1,280)


(3,166)


(2,684)


Charge-offs commercial real estate


(2,743)


(2,696)


(3,675)


(6,686)


Charge-offs commercial


(9,351)


(542)


(10,121)


(3,222)


Recoveries


1,943


1,276


3,593


2,031


Ending balance


$             71,442


72,590


71,442


72,590





















Net charge-offs to average loans, annualized


0.90%


0.34%


0.54%


0.47%











 

 

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, 


2014

2013


 Average 

 Interest 

 Avg. 

 Average 

 Interest 

 Avg. 


 Balance 


 Yield/ 

 Balance 


 Yield/ 




 Cost (g) 



 Cost (g) 

Assets:







Interest-earning assets:







   Loans receivable (a) (b) (d)

$  5,833,540

71,337

4.90%

$  5,623,784

72,548

5.16%

   Mortgage-backed securities (c) 

601,066

2,666

1.77%

726,583

3,308

1.82%

   Investment securities (c) (d) 

507,315

3,472

2.74%

531,802

4,255

3.20%

   FHLB stock

43,944

697

6.34%

48,110

34

0.28%

   Other interest-earning deposits

424,434

286

0.27%

513,930

340

0.26%








Total interest-earning assets 

7,410,299

78,458

4.24%

7,444,209

80,485

4.32%








Noninterest earning assets (e)

530,582



531,771










Total assets

$  7,940,881



$  7,975,980










Liabilities and shareholders' equity:







Interest-bearing liabilities:







   Savings deposits

$  1,239,563

821

0.27%

$  1,209,783

900

0.30%

   Interest-bearing demand deposits

896,014

149

0.07%

873,804

149

0.07%

   Money market deposit accounts

1,182,542

792

0.27%

1,121,579

748

0.27%

   Time deposits

1,598,523

4,659

1.17%

1,791,030

5,607

1.26%

   Borrowed funds (f)

872,653

6,623

3.04%

866,476

6,612

3.06%

   Junior subordinated debentures

103,094

1,170

4.49%

103,094

1,420

5.45%








Total interest-bearing liabilities

5,892,389

14,214

0.97%

5,965,766

15,436

1.04%








Noninterest-bearing demand deposits

852,253



778,468



Noninterest bearing liabilities

128,072



102,191










Total liabilities

6,872,714



6,846,425










Shareholders' equity

1,068,167



1,129,555










Total liabilities and shareholders' equity

$  7,940,881



$  7,975,980










Net interest income/ Interest rate spread


64,244

3.27%


65,049

3.28%








Net interest-earning assets/ Net interest margin

$  1,517,910


3.47%

$  1,478,443


3.50%








Ratio of interest-earning assets to







 interest-bearing liabilities

 1.26X 



 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 - 4.87% and 5.12%, respectively, Investment securities - 2.06% 

       and 2.35%, respectively, Interest-earning assets - 4.17% and 4.23%, respectively. GAAP basis net interest rate spreads were 3.20% and 

      3.19%, respectively, and GAAP basis net interest margins were 3.39% and 3.40%, 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, 


2014

2013


 Average 

 Interest 

 Avg. 

 Average 

 Interest 

 Avg. 


 Balance 


 Yield/ 

 Balance 


 Yield/ 




 Cost (g) 



 Cost (g) 

Assets:







Interest-earning assets:







   Loans receivable (a) (b) (d)

$  5,828,500

141,254

4.89%

$  5,631,110

146,075

5.19%

   Mortgage-backed securities (c) 

611,050

5,459

1.79%

726,057

6,749

1.86%

   Investment securities (c) (d) 

507,334

7,099

2.80%

500,881

8,334

3.33%

   FHLB stock

43,830

973

4.44%

47,492

71

0.30%

   Other interest-earning deposits

370,292

486

0.26%

457,871

591

0.26%








Total interest-earning assets 

7,361,006

155,271

4.25%

7,363,411

161,820

4.40%








Noninterest earning assets (e)

575,490



584,030










Total assets

$  7,936,496



$  7,947,441










Liabilities and shareholders' equity:







Interest-bearing liabilities:







   Savings deposits

$  1,224,042

1,624

0.27%

$  1,195,216

1,794

0.30%

   Interest-bearing demand deposits

873,972

288

0.07%

857,121

289

0.07%

   Money market deposit accounts

1,178,202

1,574

0.27%

1,114,553

1,490

0.27%

   Time deposits

1,621,745

9,425

1.17%

1,820,244

11,645

1.29%

   Borrowed funds (f)

876,897

13,180

3.03%

860,017

13,038

3.06%

   Junior subordinated debentures

103,094

2,327

4.49%

103,094

2,825

5.45%








Total interest-bearing liabilities

5,877,952

28,418

0.97%

5,950,245

31,081

1.05%








Noninterest-bearing demand deposits

833,750



766,578



Noninterest bearing liabilities

114,994



96,297










Total liabilities

6,826,696



6,813,120










Shareholders' equity

1,109,800



1,134,321










Total liabilities and shareholders' equity

$  7,936,496



$  7,947,441










Net interest income/ Interest rate spread


126,853

3.28%


130,739

3.35%








Net interest-earning assets/ Net interest margin

$  1,483,054


3.45%

$  1,413,166


3.55%








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 - 4.85% and 5.15%, respectively, Investment securities - 2.11% 

       and 2.43%, respectively, Interest-earning assets - 4.17% and 4.30%, respectively. GAAP basis net interest rate spreads were 3.20% and 

      3.25%, respectively, and GAAP basis net interest margins were 3.37% and 3.46%, 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, 2014

March 31, 2014


 Average 

 Interest 

 Avg. 

 Average 

 Interest 

 Avg. 


 Balance 


 Yield/ 

 Balance 


 Yield/ 




 Cost (g) 



 Cost (g) 

Assets:







Interest-earning assets:







   Loans receivable (a) (b) (d)

$  5,833,540

71,337

4.90%

$  5,823,527

69,916

4.87%

   Mortgage-backed securities (c) 

601,066

2,666

1.77%

621,146

2,793

1.80%

   Investment securities (c) (d) 

507,315

3,472

2.74%

507,354

3,627

2.86%

   FHLB stock

43,944

697

6.34%

43,715

275

2.52%

   Other interest-earning deposits

424,434

286

0.27%

351,615

200

0.23%








Total interest-earning assets 

7,410,299

78,458

4.24%

7,347,357

76,811

4.23%








Noninterest earning assets (e)

530,582



584,754










Total assets

$  7,940,881



$  7,932,111










Liabilities and shareholders' equity:







Interest-bearing liabilities:







   Savings deposits

$  1,239,563

821

0.27%

$  1,208,349

804

0.27%

   Interest-bearing demand deposits

896,014

149

0.07%

851,723

139

0.07%

   Money market deposit accounts

1,182,542

792

0.27%

1,173,957

782

0.27%

   Time deposits

1,598,523

4,659

1.17%

1,642,224

4,765

1.18%

   Borrowed funds (f)

872,653

6,623

3.04%

881,187

6,557

3.02%

   Junior subordinated debentures

103,094

1,170

4.49%

103,094

1,157

4.49%








Total interest-bearing liabilities

5,892,389

14,214

0.97%

5,860,534

14,204

0.98%








Noninterest-bearing demand deposits

852,253



815,117



Noninterest bearing liabilities

128,072



105,027










Total liabilities

6,872,714



6,780,678










Shareholders' equity

1,068,167



1,151,433










Total liabilities and shareholders' equity 

$  7,940,881



$  7,932,111










Net interest income/ Interest rate spread


64,244

3.27%


62,607

3.25%








Net interest-earning assets/ Net interest margin

$  1,517,910


3.47%

$  1,486,823


3.45%








Ratio of interest-earning assets to







 interest-bearing liabilities

 1.26X 



 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 - 4.87% and 4.83%, respectively, Investment securities - 2.06% 

       and 2.16%, respectively, Interest-earning assets - 4.17% and 4.16%, respectively. GAAP basis net interest rate spreads were 3.20% and 

      3.18%, respectively, and GAAP basis net interest margins were 3.39% and 3.38%, respectively.











 

 

SOURCE Northwest Bancshares, Inc.



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www.northwestsavingsbank.com

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