Northwest Bancorp, Inc. Announces Earnings and Dividend Declaration

Apr 19, 2001, 01:00 ET from Northwest Bancorp, Inc.

    WARREN, Pa., April 19 /PRNewswire/ --
 Northwest Bancorp, Inc. (Nasdaq: NWSB) announced net income for the quarter
 ended March 31, 2001 of $6.6 million, or $.14 per share.  Net income for the
 same quarter in the prior year was $7.2 million, or $.15 per share.  The
 annualized return on average shareholders' equity for the three months ended
 March 31, 2001 was 10.00% compared to 12.03% for the three months ended
 March 31, 2000.  The annualized return on average assets for the current
 quarter was .72% compared to .87% for the same quarter last year.  Earnings
 for the current quarter increased by $200,000, or 3.1%, compared to the
 previous fiscal quarter, which ended December 31, 2000, when earnings were
 $6.4 million.  The company's fiscal year end is June 30 and the figures
 currently released are its third quarter earnings.
     Net income for the nine months ended March 31, 2001 was $19.9 million, or
 $.42 per share, compared to net income for the same period last year of
 $19.3 million, or $.41 per share.  The annualized return on average
 shareholders' equity was 10.29% for the nine months ended March 31, 2001
 compared to 10.86% for the nine months ended March 31, 2000.  The annualized
 return on average assets for the nine months ended March 31, 2001 was
 .75% compared to .79% for the same period in the prior year.
     In making the earnings announcement, the company noted that, like most
 financial institutions, its net interest margin during the current fiscal year
 has narrowed as a result of the relatively high level of short-term interest
 rates that prevailed through December of 2000.  During this time period,
 short-term interest rates were much higher than long-term interest rates, a
 situation which typically causes a reduction in the net interest margin for
 financial institutions.  Since then, however, the Federal Reserve has taken
 action to cause short-term interest rates to decrease by 2.00% which has had a
 positive effect on reducing the cost of funds for financial institutions.
     The company also highlighted the continued growth of its franchise.
 During the current fiscal year assets have grown by $339.3 million, or
 10.0%, to $3.747 billion.  During this time the company either opened or
 acquired ten new community banking offices and three consumer finance
 facilities.  In addition, the company completed the purchase of a full service
 brokerage office in Warren, Pennsylvania and announced its intention to
 purchase Heritage Trust Company, an independent investment management and
 trust company with assets under management of almost $300 million which is
 headquartered in Erie, Pennsylvania.
     The company noted its continued focus on maintaining a high level of asset
 quality.  At March 31, 2001 nonperforming loans were only $13 million which is
 less than one-half of one percent of total loans.  As of that date, the loan
 portfolio was comprised of 69% one-to-four family mortgages, 20% consumer
 loans and 11% commercial real estate and business loans.
     The company also announced that its Board of Directors declared a
 quarterly dividend of $.04 per share to shareholders of record on April 30,
 2001 to be paid on May 18, 2001.  This represents the twenty-sixth consecutive
 quarter that the company has paid a dividend since completing its initial
 public offering in 1994.
     Net interest income increased by $620,000, or 2.2%, to $28.4 million for
 the quarter ended March 31, 2001 from $27.8 million for the quarter ended
 March 31, 2000.  For the nine months ended March 31, 2001 net interest income
 increased by $4.6 million, or 5.8%, to $84.0 million from $79.4 million during
 the same period last year.  These increases in net interest income resulted
 from the company's growth over the past twelve months, as the spread between
 the interest rates on interest-earning assets and interest-bearing liabilities
 has continued to narrow.  As previously mentioned, this narrowing in net
 interest spread resulted from abnormalities in the interest rate environment
 that have occurred over the past twelve months.
     The provision for loan losses increased by $96,000, or 8.3%, to
 $1.2 million for the quarter ended March 31, 2001 from $1.1 million for the
 quarter ended March 31, 2000.  For the nine months ended March 31, 2001 the
 provision for loan losses increased by $1.1 million, or 42.3%, to $3.7 million
 from $2.6 million the previous year.  Provisions for loan losses are charged
 to earnings in an amount sufficient, in management's judgment, to cover losses
 based upon the risk in the company's loan portfolio, current economic
 conditions and historical trends.  Management believes that the credit quality
 of the company's loan portfolio remains strong.
     Noninterest income increased by $567,000, or 20.1%, to $3.4 million for
 the three months ended March 31, 2001 from $2.8 million for the three months
 ended March 31, 2000.  For the nine months ended March 31, 2001 noninterest
 income increased by $2.4 million, or 31.6%, to $10.0 million from $7.6 million
 the previous year.  These increases were primarily due to an increase in fee
 income associated with the growth in the company's loans and deposits, as well
 as the growth of new fee-based services now offered by the company.
     Noninterest expense increased by $2.2 million, or 11.8%, to $20.8 million
 for the three months ended March 31, 2001 from $18.6 million for the three
 months ended March 31, 2000.  For the nine months ended March 31, 2001
 noninterest expense increased by $5.7 million, or 10.4%, to $60.6 million from
 $54.9 million for the same period last year.  These increases resulted
 primarily from expected increases associated with the expansion of the
 company's retail network, the expansion of new business lines and normal
 increases in compensation and other expenses.
     Northwest Bancorp, Inc. is headquartered in Warren, Pennsylvania and
 currently operates 108 banking locations in Pennsylvania and 4 banking
 locations in Ohio through its subsidiary, Northwest Savings Bank.  In
 addition, it operates 4 banking locations in southern New York through its
 subsidiary, Jamestown Savings Bank.  The company also operates Northwest
 Consumer Discount Company with 43 consumer finance offices located throughout
 Pennsylvania and one consumer finance office in New York.
     Additional information regarding Northwest Bancorp, Inc. can be accessed
 on-line at www.nwsb.com.
 
                      NORTHWEST BANCORP, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                  (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
 
                                    MARCH 31,      DECEMBER 31,     JUNE 30,
                                      2001             2000           2000
              ASSETS               (unaudited)     (unaudited)
 
     CASH AND CASH EQUIVALENTS       $62,176          77,037        82,305
     INTEREST-EARNING DEPOSITS IN
      OTHER FINANCIAL INSTITUTIONS    12,588          14,534         8,461
     MARKETABLE SECURITIES AVAILABLE
      -FOR- SALE (AMORTIZED COST OF
      $408,143, $405,421 AND
      $395,830)                      413,279         405,956       387,983
     MARKETABLE SECURITIES HELD-TO-
      MATURITY (MARKET VALUE OF
      $289,773, $260,919 AND
      $222,364)                      295,720         271,248       237,756
       TOTAL CASH, INTEREST-EARNING
        DEPOSITS AND MARKETABLE
        SECURITIES                   783,763         768,775       716,505
     LOANS RECEIVABLE, NET OF
      ALLOWANCE FOR ESTIMATED
      LOSSES OF $19,799, $19,279
      AND $18,260                  2,800,460       2,739,157     2,544,630
     FEDERAL HOME LOAN BANK
      STOCK, AT COST                  21,269          21,269        21,269
     ACCRUED INTEREST RECEIVABLE      18,067          18,695        15,978
     REAL ESTATE OWNED, NET            2,876           2,551         2,144
     PREMISES AND EQUIPMENT, NET      45,955          44,522        40,953
     GOODWILL AND OTHER INTANGIBLES   62,575          64,396        52,300
     OTHER ASSETS                     11,662          12,462        13,513
         TOTAL ASSETS             $3,746,627       3,671,827     3,407,292
 
 
        LIABILITIES AND SHAREHOLDERS' EQUITY
     LIABILITIES:
       DEPOSITS                   $3,167,781       3,065,143     2,886,509
       BORROWED FUNDS                277,832         314,256       239,941
       ADVANCES BY BORROWERS
        FOR TAXES AND INSURANCE       17,653          18,738        22,557
       ACCRUED INTEREST PAYABLE        3,704           2,418         2,352
       OTHER LIABILITIES               8,912           8,330         8,045
         TOTAL LIABILITIES         3,475,882       3,408,885     3,159,404
 
     SHAREHOLDERS' EQUITY:
       COMMON STOCK, $.10 PAR VALUE:
        100,000,000 SHARES
          AUTHORIZED, 47,408,452,
           47,391,074 AND 47,360,769
           ISSUED AND OUTSTANDING,
           RESPECTIVELY                4,741           4,739         4,736
       PAID-IN CAPITAL                71,168          71,098        70,949
       RETAINED EARNINGS             191,554         186,814       177,371
       ACCUMULATED OTHER
        COMPREHENSIVE INCOME:
          NET UNREALIZED GAIN/(LOSS)
           ON SECURITIES AVAILABLE
           -FOR-SALE, NET OF INCOME
           TAXES                       3,339             348        -5,104
       UNEARNED RECOGNITION AND
        RETENTION PLAN SHARES            -57             -57           -64
                                     270,745         262,942       247,888
         TOTAL LIABILITIES AND
          SHAREHOLDERS' EQUITY    $3,746,627       3,671,827     3,407,292
 
 
     BOOK VALUE PER SHARE               5.71            5.55          5.23
     CLOSING MARKET PRICE              9.875           9.063         6.875
     NONPERFORMING LOANS              13,047          12,014        10,260
     NONPERFORMING LOANS TO NET
      LOANS RECEIVABLE                 0.47%           0.44%         0.40%
 
 
                    NORTHWEST BANCORP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
 
 
                                      THREE MONTHS            NINE MONTHS
                                     ENDED MARCH 31,         ENDED MARCH 31,
                                    2001         2000       2001        2000
     INTEREST INCOME:
         LOANS RECEIVABLE          $56,732      49,817     165,495     145,261
         MORTGAGE-BACKED
          SECURITIES                 7,228       7,146      21,863      20,072
         TAXABLE INVESTMENT
          SECURITIES                 3,036       2,619       8,767       8,255
         TAX-FREE INVESTMENT
          SECURITIES                 1,329       1,027       3,664       3,100
         INTEREST-EARNING
          DEPOSITS                     219         209         520         703
                 TOTAL INTEREST
                  INCOME            68,544      60,818     200,309     177,391
 
     INTEREST EXPENSE:
         DEPOSITS                   36,222      29,186     103,695      84,845
         BORROWED FUNDS              3,921       3,851      12,645      13,179
                 TOTAL INTEREST
                  EXPENSE           40,143      33,037     116,340      98,024
 
                 NET INTEREST
                  INCOME            28,401      27,781      83,969      79,367
     PROVISION FOR LOAN LOSSES       1,249       1,153       3,679       2,588
                 NET INTEREST
                  INCOME AFTER
                  PROVISION
                   FOR LOAN
                    LOSSES          27,152      26,628      80,290      76,779
 
     NONINTEREST INCOME:
         LOAN FEES AND SERVICE
          CHARGES                      519         397       1,227       1,077
         SERVICE CHARGES ON
          DEPOSIT ACCOUNTS           1,972       1,219       5,985       3,761
         GAIN ON SALE OF
          MARKETABLE
          SECURITIES, NET              147         361         147         397
         GAIN (LOSS) ON SALE OF
          LOANS, NET                   -65         -10         244         -25
         GAIN (LOSS) ON SALE OF
          REAL ESTATE OWNED,
          NET                           -2         -56         -30         -28
         INSURANCE COMMISSION
          INCOME                       442         599       1,487       1,620
         OTHER OPERATING INCOME        378         314         989         779
                 TOTAL
                  NONINTEREST
                  INCOME             3,391       2,824      10,049       7,581
 
     NONINTEREST EXPENSE:
         COMPENSATION AND
          EMPLOYEE BENEFITS         10,756       9,490      32,103      28,393
         PREMISES AND OCCUPANCY
          COSTS                      2,805       2,473       7,748       6,731
         OFFICE OPERATIONS           1,366       1,130       4,123       3,903
         PROCESSING EXPENSES         1,740       1,411       4,905       4,469
         AMORTIZATION OF
          INTANGIBLES                1,952       1,578       5,350       4,259
         OTHER EXPENSES              2,147       2,473       6,392       7,148
                 TOTAL
                  NONINTEREST
                  EXPENSE           20,766      18,555      60,621      54,903
 
                 INCOME BEFORE
                  INCOME TAXES       9,777      10,897      29,718      29,457
                 FEDERAL AND
                  STATE INCOME
                  TAXES              3,140       3,681       9,848      10,130
                       NET
                        INCOME      $6,637       7,216      19,870      19,327
 
 
     BASIC EARNINGS PER SHARE        $0.14       $0.15       $0.42       $0.41
     DILUTED EARNINGS PER SHARE      $0.14       $0.15       $0.42       $0.41
     RETURN ON AVERAGE EQUITY       10.00%      12.03%      10.29%      10.86%
     RETURN ON AVERAGE ASSETS        0.72%       0.87%       0.75%       0.79%
 
     BASIC COMMON STOCK
      OUTSTANDING               47,402,220  47,360,769  47,383,863  47,286,281
     DILUTED COMMON STOCK
      OUTSTANDING               47,825,189  47,575,169  47,712,574  47,576,189
 
     ALLOWANCE FOR LOAN LOSSES:
         BEGINNING BALANCE          19,279      17,060      18,260      16,773
         PROVISION                   1,249       1,153       3,679       2,588
         CHARGE-OFFS                  -923        -644      -2,581      -2,118
         RECOVERIES                    194         144         441         470
         ENDING BALANCE             19,799      17,713      19,799      17,713
 
                             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 monthly averages.
 
                                        Three Months Ended March 31,
                                                   2001
                                   AVERAGE        INTEREST          AVG.
                                   BALANCE                         YIELD/
                                                                    COST
     ASSETS:
     Interest earning assets:
       Loans receivable (a) (b)   $2,771,015         $56,732         8.19%
       Mortgage-backed securities
        (c)                         $442,619          $7,228         6.53%
       Investment securities (c)
        (d) (e)                     $239,783          $4,696         7.83%
       FHLB stock                    $21,269            $354         6.66%
       Other interest earning
        deposits                     $16,047            $219         5.46%
     Total interest earning
      assets                      $3,490,733         $69,229         7.93%
     Noninterest earning assets
      (f)                           $181,795
     TOTAL ASSETS                 $3,672,528
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY:
     Interest bearing liabilities:
       Savings accounts             $418,263          $3,293         3.15%
       Now accounts                 $358,617          $1,193         1.33%
       Money market demand
        accounts                    $191,310          $1,751         3.66%
       Certificate accounts       $1,971,055         $29,985         6.09%
       Borrowed funds (g)           $290,034          $3,921         5.41%
     Total interest bearing
      liabilities                 $3,229,279         $40,143         4.97%
     Noninterest bearing
      liabilities                   $177,735
     Total liabilities            $3,407,014
     Shareholders' equity           $265,514
     TOTAL LIABILITIES AND
      EQUITY                      $3,672,528
 
     Net interest income/Interest
      rate spread                                    $29,086         2.96%
     Net interest earning assets/
     Net interest margin            $261,454                         3.33%
     Ratio of interest earning
      assets to interest bearing
      liabilities                     1.08 X
 
                                         Three Months Ended March 31,
                                                  2000
                                   AVERAGE          INTEREST         AVG.
                                   BALANCE                          YIELD/
                                                                     COST
 
     ASSETS:
     Interest earning assets:
       Loans receivable (a) (b)   $2,482,829         $49,817         8.03%
       Mortgage-backed securities
        (c)                         $429,768          $7,146         6.65%
       Investment securities (c)
        (d) (e)                     $211,608          $3,818         7.22%
       FHLB stock                    $21,269            $357         6.71%
       Other interest earning
        deposits                     $10,047            $209         8.32%
     Total interest earning
      assets                      $3,155,521         $61,347         7.78%
     Noninterest earning assets
      (f)                           $167,483
     TOTAL ASSETS                 $3,323,004
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY:
     Interest bearing liabilities:
       Savings account              $416,831          $3,380         3.24%
       Now accounts                 $328,574          $1,067         1.30%
       Money market demand
        accounts                    $194,126          $1,753         3.61%
       Certificate accounts       $1,729,640         $22,986         5.32%
       Borrowed funds (g)           $280,009          $3,851         5.50%
     Total interest bearing
      liabilities                 $2,949,180         $33,037         4.48%
     Noninterest bearing
      liabilities                   $133,867
     Total liabilities            $3,083,047
     Shareholders' equity           $239,957
     TOTAL LIABILITIES AND
      EQUITY                      $3,323,004
 
     Net interest income/Interest
      rate spread                                    $28,310         3.30%
     Net interest earning assets/
     Net interest margin            $206,341                         3.59%
     Ratio of interest earning
      assets to interest
      bearing liabilities             1.07 X
 
     (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.
     (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 is presented on a
         taxable equivalent basis.
     (e) Average balances include FNMA and FHLMC stock.
     (f) Average balances include the effect of unrealized gains or losses on
         securities held as available-for-sale.
     (g) Average balances include FHLB borrowings, securities sold under
         agreements to repurchase and other borrowings.
 
                             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 monthly averages.
 
                                            Nine Months Ended March 31,
                                                        2001
                                         AVERAGE       INTEREST         AVG
                                         BALANCE                      YIELD/
                                                                       COST
     ASSETS:
     Interest earning assets:
       Loans receivable (a) (b)        $2,677,988      $165,495        8.24%
       Mortgage-backed
        securities (c)                   $432,691       $21,863        6.74%
       Investment
        securities (c) (d) (e)           $226,600       $13,189        7.76%
       FHLB stock                         $21,269        $1,129        7.08%
       Other interest
        earning deposits                  $14,219          $520        4.88%
     Total interest earning assets     $3,372,767      $202,196        7.99%
     Noninterest earning assets (f)      $161,510
     TOTAL ASSETS                      $3,534,277
 
     LIABILITIES AND SHAREHOLDERS' EQUITY:
     Interest bearing liabilities:
       Savings accounts                  $419,957       $10,009        3.18%
       Now accounts                      $346,365        $3,417        1.32%
       Money market demand
        accounts                         $184,902        $5,121        3.69%
       Certificate accounts            $1,883,626       $85,148        6.03%
       Borrowed funds (g)                $278,620       $12,645        6.05%
     Total interest bearing
      liabilities                      $3,113,470      $116,340        4.98%
     Noninterest bearing
      liabilities                        $163,301
     Total liabilities                 $3,276,771
     Shareholders' equity                $257,506
     TOTAL LIABILITIES AND EQUITY      $3,534,277
     Net interest income/
      Interest rate spread                              $85,856        3.01%
     Net interest earning
      assets/Net interest margin         $259,297                      3.39%
     Ratio of interest
      earning assets to
      interest bearing liabilities         1.08 X
 
                                            Nine Months Ended March 31,
                                                       2000
                                         AVERAGE       INTEREST        AVG.
                                         BALANCE                      YIELD/
                                                                       COST
     ASSETS:
     Interest earning assets:
       Loans receivable (a) (b)        $2,408,663      $145,261        8.04%
       Mortgage-backed
        securities (c)                   $411,075       $20,072        6.51%
       Investment
        securities (c) (d) (e)           $222,020       $11,902        7.15%
       FHLB stock                         $20,371        $1,050        6.87%
       Other interest earning
        deposits                          $14,073          $703        6.66%
     Total interest earning
      assets                           $3,076,202      $178,988        7.76%
     Noninterest earning
      assets (f)                         $175,838
     TOTAL ASSETS                      $3,252,040
 
     LIABILITIES AND SHAREHOLDERS' EQUITY:
     Interest bearing liabilities:
       Savings accounts                  $416,211       $10,212        3.27%
       Now accounts                      $333,408        $3,504        1.40%
       Money market demand accounts      $184,843        $5,168        3.73%
       Certificate accounts            $1,639,003       $65,961        5.37%
       Borrowed funds (g)                $319,134       $13,179        5.51%
     Total interest bearing
      liabilities                      $2,892,599       $98,024        4.52%
     Noninterest bearing
      liabilities                        $122,561
     Total liabilities                 $3,015,160
     Shareholders' equity                $236,880
     TOTAL LIABILITIES
      AND EQUITY                       $3,252,040
 
     Net interest income/
     Interest rate spread                               $80,964        3.24%
     Net interest earning assets/
      Net interest margin                $183,603                      3.51%
     Ratio of interest earning
      assets to interest
      bearing liabilities                  1.06 X
 
     (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.
     (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 is presented on a
         taxable equivalent basis.
     (e) Average balances include FNMA and FHLMC stock.
     (f) Average balances include the effect of unrealized gains or losses on
         securities held as available-for-sale.
     (g) Average balances include FHLB borrowings, securities sold under
         agreements to repurchase and other borrowings.
 
 

SOURCE Northwest Bancorp, Inc.
    WARREN, Pa., April 19 /PRNewswire/ --
 Northwest Bancorp, Inc. (Nasdaq: NWSB) announced net income for the quarter
 ended March 31, 2001 of $6.6 million, or $.14 per share.  Net income for the
 same quarter in the prior year was $7.2 million, or $.15 per share.  The
 annualized return on average shareholders' equity for the three months ended
 March 31, 2001 was 10.00% compared to 12.03% for the three months ended
 March 31, 2000.  The annualized return on average assets for the current
 quarter was .72% compared to .87% for the same quarter last year.  Earnings
 for the current quarter increased by $200,000, or 3.1%, compared to the
 previous fiscal quarter, which ended December 31, 2000, when earnings were
 $6.4 million.  The company's fiscal year end is June 30 and the figures
 currently released are its third quarter earnings.
     Net income for the nine months ended March 31, 2001 was $19.9 million, or
 $.42 per share, compared to net income for the same period last year of
 $19.3 million, or $.41 per share.  The annualized return on average
 shareholders' equity was 10.29% for the nine months ended March 31, 2001
 compared to 10.86% for the nine months ended March 31, 2000.  The annualized
 return on average assets for the nine months ended March 31, 2001 was
 .75% compared to .79% for the same period in the prior year.
     In making the earnings announcement, the company noted that, like most
 financial institutions, its net interest margin during the current fiscal year
 has narrowed as a result of the relatively high level of short-term interest
 rates that prevailed through December of 2000.  During this time period,
 short-term interest rates were much higher than long-term interest rates, a
 situation which typically causes a reduction in the net interest margin for
 financial institutions.  Since then, however, the Federal Reserve has taken
 action to cause short-term interest rates to decrease by 2.00% which has had a
 positive effect on reducing the cost of funds for financial institutions.
     The company also highlighted the continued growth of its franchise.
 During the current fiscal year assets have grown by $339.3 million, or
 10.0%, to $3.747 billion.  During this time the company either opened or
 acquired ten new community banking offices and three consumer finance
 facilities.  In addition, the company completed the purchase of a full service
 brokerage office in Warren, Pennsylvania and announced its intention to
 purchase Heritage Trust Company, an independent investment management and
 trust company with assets under management of almost $300 million which is
 headquartered in Erie, Pennsylvania.
     The company noted its continued focus on maintaining a high level of asset
 quality.  At March 31, 2001 nonperforming loans were only $13 million which is
 less than one-half of one percent of total loans.  As of that date, the loan
 portfolio was comprised of 69% one-to-four family mortgages, 20% consumer
 loans and 11% commercial real estate and business loans.
     The company also announced that its Board of Directors declared a
 quarterly dividend of $.04 per share to shareholders of record on April 30,
 2001 to be paid on May 18, 2001.  This represents the twenty-sixth consecutive
 quarter that the company has paid a dividend since completing its initial
 public offering in 1994.
     Net interest income increased by $620,000, or 2.2%, to $28.4 million for
 the quarter ended March 31, 2001 from $27.8 million for the quarter ended
 March 31, 2000.  For the nine months ended March 31, 2001 net interest income
 increased by $4.6 million, or 5.8%, to $84.0 million from $79.4 million during
 the same period last year.  These increases in net interest income resulted
 from the company's growth over the past twelve months, as the spread between
 the interest rates on interest-earning assets and interest-bearing liabilities
 has continued to narrow.  As previously mentioned, this narrowing in net
 interest spread resulted from abnormalities in the interest rate environment
 that have occurred over the past twelve months.
     The provision for loan losses increased by $96,000, or 8.3%, to
 $1.2 million for the quarter ended March 31, 2001 from $1.1 million for the
 quarter ended March 31, 2000.  For the nine months ended March 31, 2001 the
 provision for loan losses increased by $1.1 million, or 42.3%, to $3.7 million
 from $2.6 million the previous year.  Provisions for loan losses are charged
 to earnings in an amount sufficient, in management's judgment, to cover losses
 based upon the risk in the company's loan portfolio, current economic
 conditions and historical trends.  Management believes that the credit quality
 of the company's loan portfolio remains strong.
     Noninterest income increased by $567,000, or 20.1%, to $3.4 million for
 the three months ended March 31, 2001 from $2.8 million for the three months
 ended March 31, 2000.  For the nine months ended March 31, 2001 noninterest
 income increased by $2.4 million, or 31.6%, to $10.0 million from $7.6 million
 the previous year.  These increases were primarily due to an increase in fee
 income associated with the growth in the company's loans and deposits, as well
 as the growth of new fee-based services now offered by the company.
     Noninterest expense increased by $2.2 million, or 11.8%, to $20.8 million
 for the three months ended March 31, 2001 from $18.6 million for the three
 months ended March 31, 2000.  For the nine months ended March 31, 2001
 noninterest expense increased by $5.7 million, or 10.4%, to $60.6 million from
 $54.9 million for the same period last year.  These increases resulted
 primarily from expected increases associated with the expansion of the
 company's retail network, the expansion of new business lines and normal
 increases in compensation and other expenses.
     Northwest Bancorp, Inc. is headquartered in Warren, Pennsylvania and
 currently operates 108 banking locations in Pennsylvania and 4 banking
 locations in Ohio through its subsidiary, Northwest Savings Bank.  In
 addition, it operates 4 banking locations in southern New York through its
 subsidiary, Jamestown Savings Bank.  The company also operates Northwest
 Consumer Discount Company with 43 consumer finance offices located throughout
 Pennsylvania and one consumer finance office in New York.
     Additional information regarding Northwest Bancorp, Inc. can be accessed
 on-line at www.nwsb.com.
 
                      NORTHWEST BANCORP, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                  (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
 
                                    MARCH 31,      DECEMBER 31,     JUNE 30,
                                      2001             2000           2000
              ASSETS               (unaudited)     (unaudited)
 
     CASH AND CASH EQUIVALENTS       $62,176          77,037        82,305
     INTEREST-EARNING DEPOSITS IN
      OTHER FINANCIAL INSTITUTIONS    12,588          14,534         8,461
     MARKETABLE SECURITIES AVAILABLE
      -FOR- SALE (AMORTIZED COST OF
      $408,143, $405,421 AND
      $395,830)                      413,279         405,956       387,983
     MARKETABLE SECURITIES HELD-TO-
      MATURITY (MARKET VALUE OF
      $289,773, $260,919 AND
      $222,364)                      295,720         271,248       237,756
       TOTAL CASH, INTEREST-EARNING
        DEPOSITS AND MARKETABLE
        SECURITIES                   783,763         768,775       716,505
     LOANS RECEIVABLE, NET OF
      ALLOWANCE FOR ESTIMATED
      LOSSES OF $19,799, $19,279
      AND $18,260                  2,800,460       2,739,157     2,544,630
     FEDERAL HOME LOAN BANK
      STOCK, AT COST                  21,269          21,269        21,269
     ACCRUED INTEREST RECEIVABLE      18,067          18,695        15,978
     REAL ESTATE OWNED, NET            2,876           2,551         2,144
     PREMISES AND EQUIPMENT, NET      45,955          44,522        40,953
     GOODWILL AND OTHER INTANGIBLES   62,575          64,396        52,300
     OTHER ASSETS                     11,662          12,462        13,513
         TOTAL ASSETS             $3,746,627       3,671,827     3,407,292
 
 
        LIABILITIES AND SHAREHOLDERS' EQUITY
     LIABILITIES:
       DEPOSITS                   $3,167,781       3,065,143     2,886,509
       BORROWED FUNDS                277,832         314,256       239,941
       ADVANCES BY BORROWERS
        FOR TAXES AND INSURANCE       17,653          18,738        22,557
       ACCRUED INTEREST PAYABLE        3,704           2,418         2,352
       OTHER LIABILITIES               8,912           8,330         8,045
         TOTAL LIABILITIES         3,475,882       3,408,885     3,159,404
 
     SHAREHOLDERS' EQUITY:
       COMMON STOCK, $.10 PAR VALUE:
        100,000,000 SHARES
          AUTHORIZED, 47,408,452,
           47,391,074 AND 47,360,769
           ISSUED AND OUTSTANDING,
           RESPECTIVELY                4,741           4,739         4,736
       PAID-IN CAPITAL                71,168          71,098        70,949
       RETAINED EARNINGS             191,554         186,814       177,371
       ACCUMULATED OTHER
        COMPREHENSIVE INCOME:
          NET UNREALIZED GAIN/(LOSS)
           ON SECURITIES AVAILABLE
           -FOR-SALE, NET OF INCOME
           TAXES                       3,339             348        -5,104
       UNEARNED RECOGNITION AND
        RETENTION PLAN SHARES            -57             -57           -64
                                     270,745         262,942       247,888
         TOTAL LIABILITIES AND
          SHAREHOLDERS' EQUITY    $3,746,627       3,671,827     3,407,292
 
 
     BOOK VALUE PER SHARE               5.71            5.55          5.23
     CLOSING MARKET PRICE              9.875           9.063         6.875
     NONPERFORMING LOANS              13,047          12,014        10,260
     NONPERFORMING LOANS TO NET
      LOANS RECEIVABLE                 0.47%           0.44%         0.40%
 
 
                    NORTHWEST BANCORP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
 
 
                                      THREE MONTHS            NINE MONTHS
                                     ENDED MARCH 31,         ENDED MARCH 31,
                                    2001         2000       2001        2000
     INTEREST INCOME:
         LOANS RECEIVABLE          $56,732      49,817     165,495     145,261
         MORTGAGE-BACKED
          SECURITIES                 7,228       7,146      21,863      20,072
         TAXABLE INVESTMENT
          SECURITIES                 3,036       2,619       8,767       8,255
         TAX-FREE INVESTMENT
          SECURITIES                 1,329       1,027       3,664       3,100
         INTEREST-EARNING
          DEPOSITS                     219         209         520         703
                 TOTAL INTEREST
                  INCOME            68,544      60,818     200,309     177,391
 
     INTEREST EXPENSE:
         DEPOSITS                   36,222      29,186     103,695      84,845
         BORROWED FUNDS              3,921       3,851      12,645      13,179
                 TOTAL INTEREST
                  EXPENSE           40,143      33,037     116,340      98,024
 
                 NET INTEREST
                  INCOME            28,401      27,781      83,969      79,367
     PROVISION FOR LOAN LOSSES       1,249       1,153       3,679       2,588
                 NET INTEREST
                  INCOME AFTER
                  PROVISION
                   FOR LOAN
                    LOSSES          27,152      26,628      80,290      76,779
 
     NONINTEREST INCOME:
         LOAN FEES AND SERVICE
          CHARGES                      519         397       1,227       1,077
         SERVICE CHARGES ON
          DEPOSIT ACCOUNTS           1,972       1,219       5,985       3,761
         GAIN ON SALE OF
          MARKETABLE
          SECURITIES, NET              147         361         147         397
         GAIN (LOSS) ON SALE OF
          LOANS, NET                   -65         -10         244         -25
         GAIN (LOSS) ON SALE OF
          REAL ESTATE OWNED,
          NET                           -2         -56         -30         -28
         INSURANCE COMMISSION
          INCOME                       442         599       1,487       1,620
         OTHER OPERATING INCOME        378         314         989         779
                 TOTAL
                  NONINTEREST
                  INCOME             3,391       2,824      10,049       7,581
 
     NONINTEREST EXPENSE:
         COMPENSATION AND
          EMPLOYEE BENEFITS         10,756       9,490      32,103      28,393
         PREMISES AND OCCUPANCY
          COSTS                      2,805       2,473       7,748       6,731
         OFFICE OPERATIONS           1,366       1,130       4,123       3,903
         PROCESSING EXPENSES         1,740       1,411       4,905       4,469
         AMORTIZATION OF
          INTANGIBLES                1,952       1,578       5,350       4,259
         OTHER EXPENSES              2,147       2,473       6,392       7,148
                 TOTAL
                  NONINTEREST
                  EXPENSE           20,766      18,555      60,621      54,903
 
                 INCOME BEFORE
                  INCOME TAXES       9,777      10,897      29,718      29,457
                 FEDERAL AND
                  STATE INCOME
                  TAXES              3,140       3,681       9,848      10,130
                       NET
                        INCOME      $6,637       7,216      19,870      19,327
 
 
     BASIC EARNINGS PER SHARE        $0.14       $0.15       $0.42       $0.41
     DILUTED EARNINGS PER SHARE      $0.14       $0.15       $0.42       $0.41
     RETURN ON AVERAGE EQUITY       10.00%      12.03%      10.29%      10.86%
     RETURN ON AVERAGE ASSETS        0.72%       0.87%       0.75%       0.79%
 
     BASIC COMMON STOCK
      OUTSTANDING               47,402,220  47,360,769  47,383,863  47,286,281
     DILUTED COMMON STOCK
      OUTSTANDING               47,825,189  47,575,169  47,712,574  47,576,189
 
     ALLOWANCE FOR LOAN LOSSES:
         BEGINNING BALANCE          19,279      17,060      18,260      16,773
         PROVISION                   1,249       1,153       3,679       2,588
         CHARGE-OFFS                  -923        -644      -2,581      -2,118
         RECOVERIES                    194         144         441         470
         ENDING BALANCE             19,799      17,713      19,799      17,713
 
                             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 monthly averages.
 
                                        Three Months Ended March 31,
                                                   2001
                                   AVERAGE        INTEREST          AVG.
                                   BALANCE                         YIELD/
                                                                    COST
     ASSETS:
     Interest earning assets:
       Loans receivable (a) (b)   $2,771,015         $56,732         8.19%
       Mortgage-backed securities
        (c)                         $442,619          $7,228         6.53%
       Investment securities (c)
        (d) (e)                     $239,783          $4,696         7.83%
       FHLB stock                    $21,269            $354         6.66%
       Other interest earning
        deposits                     $16,047            $219         5.46%
     Total interest earning
      assets                      $3,490,733         $69,229         7.93%
     Noninterest earning assets
      (f)                           $181,795
     TOTAL ASSETS                 $3,672,528
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY:
     Interest bearing liabilities:
       Savings accounts             $418,263          $3,293         3.15%
       Now accounts                 $358,617          $1,193         1.33%
       Money market demand
        accounts                    $191,310          $1,751         3.66%
       Certificate accounts       $1,971,055         $29,985         6.09%
       Borrowed funds (g)           $290,034          $3,921         5.41%
     Total interest bearing
      liabilities                 $3,229,279         $40,143         4.97%
     Noninterest bearing
      liabilities                   $177,735
     Total liabilities            $3,407,014
     Shareholders' equity           $265,514
     TOTAL LIABILITIES AND
      EQUITY                      $3,672,528
 
     Net interest income/Interest
      rate spread                                    $29,086         2.96%
     Net interest earning assets/
     Net interest margin            $261,454                         3.33%
     Ratio of interest earning
      assets to interest bearing
      liabilities                     1.08 X
 
                                         Three Months Ended March 31,
                                                  2000
                                   AVERAGE          INTEREST         AVG.
                                   BALANCE                          YIELD/
                                                                     COST
 
     ASSETS:
     Interest earning assets:
       Loans receivable (a) (b)   $2,482,829         $49,817         8.03%
       Mortgage-backed securities
        (c)                         $429,768          $7,146         6.65%
       Investment securities (c)
        (d) (e)                     $211,608          $3,818         7.22%
       FHLB stock                    $21,269            $357         6.71%
       Other interest earning
        deposits                     $10,047            $209         8.32%
     Total interest earning
      assets                      $3,155,521         $61,347         7.78%
     Noninterest earning assets
      (f)                           $167,483
     TOTAL ASSETS                 $3,323,004
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY:
     Interest bearing liabilities:
       Savings account              $416,831          $3,380         3.24%
       Now accounts                 $328,574          $1,067         1.30%
       Money market demand
        accounts                    $194,126          $1,753         3.61%
       Certificate accounts       $1,729,640         $22,986         5.32%
       Borrowed funds (g)           $280,009          $3,851         5.50%
     Total interest bearing
      liabilities                 $2,949,180         $33,037         4.48%
     Noninterest bearing
      liabilities                   $133,867
     Total liabilities            $3,083,047
     Shareholders' equity           $239,957
     TOTAL LIABILITIES AND
      EQUITY                      $3,323,004
 
     Net interest income/Interest
      rate spread                                    $28,310         3.30%
     Net interest earning assets/
     Net interest margin            $206,341                         3.59%
     Ratio of interest earning
      assets to interest
      bearing liabilities             1.07 X
 
     (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.
     (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 is presented on a
         taxable equivalent basis.
     (e) Average balances include FNMA and FHLMC stock.
     (f) Average balances include the effect of unrealized gains or losses on
         securities held as available-for-sale.
     (g) Average balances include FHLB borrowings, securities sold under
         agreements to repurchase and other borrowings.
 
                             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 monthly averages.
 
                                            Nine Months Ended March 31,
                                                        2001
                                         AVERAGE       INTEREST         AVG
                                         BALANCE                      YIELD/
                                                                       COST
     ASSETS:
     Interest earning assets:
       Loans receivable (a) (b)        $2,677,988      $165,495        8.24%
       Mortgage-backed
        securities (c)                   $432,691       $21,863        6.74%
       Investment
        securities (c) (d) (e)           $226,600       $13,189        7.76%
       FHLB stock                         $21,269        $1,129        7.08%
       Other interest
        earning deposits                  $14,219          $520        4.88%
     Total interest earning assets     $3,372,767      $202,196        7.99%
     Noninterest earning assets (f)      $161,510
     TOTAL ASSETS                      $3,534,277
 
     LIABILITIES AND SHAREHOLDERS' EQUITY:
     Interest bearing liabilities:
       Savings accounts                  $419,957       $10,009        3.18%
       Now accounts                      $346,365        $3,417        1.32%
       Money market demand
        accounts                         $184,902        $5,121        3.69%
       Certificate accounts            $1,883,626       $85,148        6.03%
       Borrowed funds (g)                $278,620       $12,645        6.05%
     Total interest bearing
      liabilities                      $3,113,470      $116,340        4.98%
     Noninterest bearing
      liabilities                        $163,301
     Total liabilities                 $3,276,771
     Shareholders' equity                $257,506
     TOTAL LIABILITIES AND EQUITY      $3,534,277
     Net interest income/
      Interest rate spread                              $85,856        3.01%
     Net interest earning
      assets/Net interest margin         $259,297                      3.39%
     Ratio of interest
      earning assets to
      interest bearing liabilities         1.08 X
 
                                            Nine Months Ended March 31,
                                                       2000
                                         AVERAGE       INTEREST        AVG.
                                         BALANCE                      YIELD/
                                                                       COST
     ASSETS:
     Interest earning assets:
       Loans receivable (a) (b)        $2,408,663      $145,261        8.04%
       Mortgage-backed
        securities (c)                   $411,075       $20,072        6.51%
       Investment
        securities (c) (d) (e)           $222,020       $11,902        7.15%
       FHLB stock                         $20,371        $1,050        6.87%
       Other interest earning
        deposits                          $14,073          $703        6.66%
     Total interest earning
      assets                           $3,076,202      $178,988        7.76%
     Noninterest earning
      assets (f)                         $175,838
     TOTAL ASSETS                      $3,252,040
 
     LIABILITIES AND SHAREHOLDERS' EQUITY:
     Interest bearing liabilities:
       Savings accounts                  $416,211       $10,212        3.27%
       Now accounts                      $333,408        $3,504        1.40%
       Money market demand accounts      $184,843        $5,168        3.73%
       Certificate accounts            $1,639,003       $65,961        5.37%
       Borrowed funds (g)                $319,134       $13,179        5.51%
     Total interest bearing
      liabilities                      $2,892,599       $98,024        4.52%
     Noninterest bearing
      liabilities                        $122,561
     Total liabilities                 $3,015,160
     Shareholders' equity                $236,880
     TOTAL LIABILITIES
      AND EQUITY                       $3,252,040
 
     Net interest income/
     Interest rate spread                               $80,964        3.24%
     Net interest earning assets/
      Net interest margin                $183,603                      3.51%
     Ratio of interest earning
      assets to interest
      bearing liabilities                  1.06 X
 
     (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.
     (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 is presented on a
         taxable equivalent basis.
     (e) Average balances include FNMA and FHLMC stock.
     (f) Average balances include the effect of unrealized gains or losses on
         securities held as available-for-sale.
     (g) Average balances include FHLB borrowings, securities sold under
         agreements to repurchase and other borrowings.
 
 SOURCE  Northwest Bancorp, Inc.