Northwest Bancshares, Inc. Announces Record Annual Earnings and Increased Dividend Declaration
WARREN, Pa., Jan. 23, 2012 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2011 of $15.2 million, or $0.16 per diluted share. This represents an increase of $2.5 million, or 19.1%, over the same quarter last year when net income was $12.7 million, or $0.12 per diluted share, and a decrease of $1.5 million compared to the quarter ended September 30, 2011 when net income was $16.7 million, or $0.17 per diluted share. The annualized returns on average shareholders' equity and average assets for the current quarter were 5.23% and 0.76% compared to 3.90% and 0.63% for the same quarter last year and 5.62% and 0.83% for the quarter ended September 30, 2011.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.12 per share, an increase of $0.01 per share, or 9.1%, payable on February 16, 2012, to shareholders of record as of February 2, 2012. This represents the 69th consecutive quarter in which the Company has paid a cash dividend.
In making this announcement, William J. Wagner, President and CEO, noted, "We were pleased with most areas of our operations for the most recent quarter and the 2011 calendar year. Compared to prior year periods, net interest income remained at historically strong levels and all other sources of income remained relatively consistent as a reduction in service charges on deposits was offset by an increase in fee income from trust and insurance services. Increases in operating expense resulted primarily from additional compensation expense and professional fees that were incurred in conjunction with initiatives to strengthen our compliance management system. Although delinquency continues to improve, loan loss provisions and loan charge-offs remain at elevated levels as we continue to work through the credit challenges that have accumulated over the past three years. Stock repurchases were curtailed in the most recent quarter with only 170,000 shares purchased, as the market value of our stock increased substantially. Given our strong capital position, the Board of Directors elected to increase the dividend by $0.01 per quarter for the third consecutive year, resulting in a dividend yield of approximately 3.8%."
Net interest income decreased by $692,000, or 1.0%, to $66.5 million for the quarter ended December 31, 2011, from $67.2 million for the quarter ended December 31, 2010, which was primarily attributable to a decrease in interest income from loans of $3.2 million, or 3.8%, to $79.9 million. Partially offsetting this decrease was a decrease in interest on deposits of $2.8 million, or 16.4%, to $14.2 million. Both of these decreases were primarily due to decreases in market interest rates.
The provision for loan losses decreased by $3.4 million, or 24.5%, to $10.5 million for the quarter ended December 31, 2011, from $13.9 million a year ago. As of December 31, 2011, the allowance for loan losses was $71.1 million, or 1.28% of total loans, compared to $76.4 million, or 1.38% of total loans, as of December 31, 2010. Nonperforming loans decreased $17.3 million, or 11.6%, to $131.1 million at December 31, 2011, from $148.4 million at December 31, 2010. The ratio of nonperforming assets to total assets decreased to 1.99% at December 31, 2011 from 2.08% at December 31, 2010.
Noninterest income decreased by $1.2 million, or 7.4%, to $14.0 million for the quarter ended December 31, 2011, from $15.2 million for the quarter ended December 31, 2010 primarily due to a decrease in mortgage banking income of $1.5 million, or 102.0%. This reduction resulted from the Company retaining most of the mortgage loans originated rather than selling those loans into the secondary market.
Noninterest expense decreased by $2.3 million, or 4.5%, to $48.4 million for the quarter ended December 31, 2011, from $50.7 million in the prior year due primarily to a decrease in federal deposit insurance premiums of $1.4 million, or 60.0%, to $933,000 as the assessment formula was changed to calculate premiums based on assets rather than deposits.
Net income for the year ended December 31, 2011 of $64.1 million, or $0.64 per diluted share represents an increase of $6.6 million, or 11.5% compared to net income of $57.5 million, or $0.53 per diluted share, for the year ended December 31, 2010. The annual returns on average shareholders' equity and average assets were 5.24% and 0.80%, respectively, for the current year compared to 4.40% and 0.71%, respectively, in the prior year. Year over year net interest income increased by $9.6 million, or 3.7%, and the provision for loan losses decreased by $6.3 million, or 15.6%. Partially offsetting these improvements was a decrease in noninterest income of $2.3 million, or 3.7%, and an increase in noninterest expense of $3.7 million, or 1.9%.
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 as well as benefits and wealth management services. Northwest operates 168 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 press 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 that could result from an economic downturn; (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 and non-performing 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 |
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(Dollars in thousands, except per share amounts) |
||||||||||
|
|
|
||||||||
|
|
December 31, |
||||||||
Assets |
|
2011 |
|
2010 |
||||||
Cash and cash equivalents |
|
$ 94,276 |
|
40,708 |
||||||
Interest-earning deposits in other financial institutions |
|
593,388 |
|
677,771 |
||||||
Federal funds sold and other short-term investments |
|
633 |
|
632 |
||||||
Marketable securities available-for-sale (amortized cost of $885,408 and $945,571) |
|
908,349 |
|
950,463 |
||||||
Marketable securities held-to-maturity (fair value of $239,412 and $354,126) |
|
231,389 |
|
357,922 |
||||||
|
Total cash, interest-earning deposits and marketable securities |
|
1,828,035 |
|
2,027,496 |
|||||
|
|
|
|
|
|
|||||
Loans held for sale |
|
967 |
|
11,376 |
||||||
Residential mortgage loans |
|
2,396,399 |
|
2,386,928 |
||||||
Home equity loans |
|
1,084,786 |
|
1,095,953 |
||||||
Other consumer loans |
|
245,689 |
|
255,776 |
||||||
Commercial real estate loans |
|
1,435,767 |
|
1,350,319 |
||||||
Commercial loans |
|
387,911 |
|
433,653 |
||||||
|
Total loans receivable |
|
5,551,519 |
|
5,534,005 |
|||||
Allowance for loan losses |
|
(71,138) |
|
(76,412) |
||||||
|
Loans receivable, net |
|
5,480,381 |
|
5,457,593 |
|||||
|
|
|
|
|
|
|||||
Federal Home Loan Bank stock, at cost |
|
48,935 |
|
60,080 |
||||||
Accrued interest receivable |
|
25,502 |
|
26,216 |
||||||
Real estate owned, net |
|
26,887 |
|
20,780 |
||||||
Premises and Equipment, net |
|
132,152 |
|
128,101 |
||||||
Bank owned life insurance |
|
133,524 |
|
132,237 |
||||||
Goodwill |
|
171,882 |
|
171,882 |
||||||
Other intangible assets |
|
2,123 |
|
3,942 |
||||||
Other assets |
|
107,203 |
|
119,828 |
||||||
|
Total assets |
|
$ 7,956,624 |
|
8,148,155 |
|||||
|
|
|
|
|
|
|||||
Liabilities and Shareholders' equity |
|
|
|
|
||||||
Liabilities |
|
|
|
|
||||||
Noninterest-bearing demand deposits |
|
$ 658,560 |
|
575,281 |
||||||
Interest-bearing demand deposits |
|
800,676 |
|
782,257 |
||||||
Savings deposits |
|
2,036,272 |
|
1,948,882 |
||||||
Time deposits |
|
2,284,817 |
|
2,457,916 |
||||||
|
Total deposits |
|
5,780,325 |
|
5,764,336 |
|||||
Borrowed funds |
|
827,925 |
|
891,293 |
||||||
Advances by borrowers for taxes and insurance |
|
23,571 |
|
22,868 |
||||||
Accrued interest payable |
|
1,104 |
|
1,716 |
||||||
Other liabilities |
|
66,782 |
|
57,398 |
||||||
Junior subordinated debentures |
|
103,094 |
|
103,094 |
||||||
|
Total liabilities |
|
6,802,801 |
|
6,840,705 |
|||||
|
|
|
|
|
|
|||||
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, 97,493,046 shares |
|
|
|
|
||||||
|
and 110,295,117 shares issued, respectively |
|
975 |
|
1,103 |
|||||
Paid-in-capital |
|
659,523 |
|
824,164 |
||||||
Retained earnings |
|
543,598 |
|
523,089 |
||||||
Unallocated common stock of Employee Stock Ownership Plan |
|
(27,047) |
|
(27,409) |
||||||
Accumulated other comprehensive loss |
|
(23,226) |
|
(13,497) |
||||||
|
Total shareholders' equity |
|
1,153,823 |
|
1,307,450 |
|||||
|
Total liabilities and shareholders' equity |
|
$ 7,956,624 |
|
8,148,155 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets |
|
14.50% |
|
16.05% |
|
|
|
|
|
|
Tangible common equity to assets |
|
12.59% |
|
14.19% |
|
|
|
|
|
|
Book value per share |
|
$11.83 |
|
$11.85 |
|
|
|
|
|
|
Tangible book value per share |
|
$10.05 |
|
$10.26 |
|
|
|
|
|
|
Closing market price per share |
|
$12.44 |
|
$11.78 |
|
|
|
|
|
|
Full time equivalent employees |
|
1,950 |
|
1,897 |
|
|
|
|
|
|
Number of banking offices |
|
168 |
|
171 |
|
|
|
|
|
|
|
|
|
|
|
|
Northwest Bancshares, Inc. and Subsidiaries |
|||||||||
Consolidated Statements of Income |
|||||||||
(Dollars in thousands, except per share amounts) |
|||||||||
|
|
|
|
|
|
||||
|
|
|
|
|
Three months ended |
||||
|
|
|
|
|
December 31, |
|
September 30, |
||
|
|
|
|
|
2011 |
|
2010 |
|
2011 |
Interest income: |
|
|
|
|
|
|
|||
|
Loans receivable |
|
$ 79,930 |
|
83,096 |
|
80,562 |
||
|
Mortgage-backed securities |
|
5,077 |
|
5,886 |
|
5,544 |
||
|
Taxable investment securities |
|
776 |
|
428 |
|
684 |
||
|
Tax-free investment securities |
|
2,600 |
|
3,111 |
|
2,848 |
||
|
Interest-earning deposits |
|
423 |
|
496 |
|
393 |
||
|
|
Total interest income |
|
88,806 |
|
93,017 |
|
90,031 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|||
|
Deposits |
|
14,227 |
|
17,025 |
|
14,958 |
||
|
Borrowed funds |
|
8,041 |
|
8,762 |
|
8,061 |
||
|
|
Total interest expense |
|
22,268 |
|
25,787 |
|
23,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
66,538 |
|
67,230 |
|
67,012 |
|
Provision for loan losses |
|
10,502 |
|
13,918 |
|
8,057 |
|||
|
|
Net interest income after provision |
|
|
|
|
|
|
|
|
|
for loan losses |
|
56,036 |
|
53,312 |
|
58,955 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|||
|
Impairment losses on securities |
|
(1,205) |
|
(1,841) |
|
- |
||
|
Noncredit related losses on securities not expected |
|
|
|
|
|
|
||
|
|
to be sold (recognized in other comprehensive income) |
|
775 |
|
1,006 |
|
- |
|
|
Net impairment losses |
|
(430) |
|
(835) |
|
- |
||
|
Gain on sale of investments, net |
|
157 |
|
8 |
|
152 |
||
|
Service charges and fees |
|
8,630 |
|
9,296 |
|
8,499 |
||
|
Trust and other financial services income |
|
1,967 |
|
1,907 |
|
2,063 |
||
|
Insurance commission income |
|
1,582 |
|
1,362 |
|
1,796 |
||
|
Loss on real estate owned, net |
|
(466) |
|
(279) |
|
(1,340) |
||
|
Income from bank owned life insurance |
|
1,199 |
|
1,228 |
|
1,938 |
||
|
Mortgage banking income/(loss) |
|
(29) |
|
1,423 |
|
400 |
||
|
Other operating income |
|
1,428 |
|
1,058 |
|
1,002 |
||
|
|
Total noninterest income |
|
14,038 |
|
15,168 |
|
14,510 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|||
|
Compensation and employee benefits |
|
25,434 |
|
25,328 |
|
26,004 |
||
|
Premises and occupancy costs |
|
5,556 |
|
5,675 |
|
5,658 |
||
|
Office operations |
|
3,286 |
|
3,233 |
|
3,209 |
||
|
Processing expenses |
|
5,982 |
|
6,041 |
|
5,896 |
||
|
Marketing expenses |
|
3,098 |
|
2,930 |
|
2,788 |
||
|
Federal deposit insurance premiums |
|
933 |
|
2,334 |
|
1,386 |
||
|
Professional services |
|
1,441 |
|
291 |
|
1,238 |
||
|
Amortization of intangible assets |
|
374 |
|
518 |
|
475 |
||
|
Real estate owned expense |
|
462 |
|
636 |
|
483 |
||
|
Acquisition expense |
|
- |
|
591 |
|
- |
||
|
Other expense |
|
1,870 |
|
3,122 |
|
2,786 |
||
|
|
Total noninterest expense |
|
48,436 |
|
50,699 |
|
49,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
21,638 |
|
17,781 |
|
23,542 |
|
|
Income tax expense |
|
6,463 |
|
5,043 |
|
6,822 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ 15,175 |
|
12,738 |
|
16,720 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ 0.16 |
|
0.12 |
|
0.17 |
|||
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
$ 0.16 |
|
0.12 |
|
0.17 |
|||
|
|
|
|
|
|
|
|
|
|
Annualized return on average shareholders' equity |
|
5.23% |
|
3.90% |
|
5.62% |
|||
Annualized return on average assets |
|
0.76% |
|
0.63% |
|
0.83% |
|||
|
|
|
|
|
|
|
|
|
|
Basic common shares outstanding |
|
93,675,589 |
|
108,337,001 |
|
96,918,016 |
|||
Diluted common shares outstanding |
|
93,972,187 |
|
108,848,189 |
|
97,124,328 |
|||
|
|
|
|
|
|
|
|
|
|
Northwest Bancshares, Inc. and Subsidiaries |
|||||||
Consolidated Statements of Income |
|||||||
(Dollars in thousands, except per share amounts) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
||
|
|
|
|
|
December 31, |
||
|
|
|
|
|
2011 |
|
2010 |
Interest income: |
|
|
|
|
|||
|
Loans receivable |
|
$ 320,942 |
|
328,948 |
||
|
Mortgage-backed securities |
|
23,450 |
|
25,271 |
||
|
Taxable investment securities |
|
2,452 |
|
2,514 |
||
|
Tax-free investment securities |
|
11,514 |
|
11,738 |
||
|
Interest-earning deposits |
|
1,712 |
|
2,097 |
||
|
|
Total interest income |
|
360,070 |
|
370,568 |
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|||
|
Deposits |
|
60,721 |
|
75,174 |
||
|
Borrowed funds |
|
32,080 |
|
37,753 |
||
|
|
Total interest expense |
|
92,801 |
|
112,927 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
267,269 |
|
257,641 |
|
Provision for loan losses |
|
34,170 |
|
40,486 |
|||
|
|
Net interest income after provision |
|
|
|
|
|
|
|
for loan losses |
|
233,099 |
|
217,155 |
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|||
|
Impairment losses on securities |
|
(1,782) |
|
(2,741) |
||
|
Noncredit related losses on securities not expected |
|
|
|
|
||
|
|
to be sold (recognized in other comprehensive income) |
|
845 |
|
1,193 |
|
|
Net impairment losses |
|
(937) |
|
(1,548) |
||
|
Gain on sale of investments, net |
|
358 |
|
2,208 |
||
|
Service charges and fees |
|
35,378 |
|
37,921 |
||
|
Trust and other financial services income |
|
8,125 |
|
7,252 |
||
|
Insurance commission income |
|
6,548 |
|
5,190 |
||
|
Loss on real estate owned, net |
|
(2,426) |
|
(2,572) |
||
|
Income from bank owned life insurance |
|
6,019 |
|
5,080 |
||
|
Mortgage banking income |
|
858 |
|
2,196 |
||
|
Other operating income |
|
4,213 |
|
4,671 |
||
|
|
Total noninterest income |
|
58,136 |
|
60,398 |
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|||
|
Compensation and employee benefits |
|
106,595 |
|
100,709 |
||
|
Premises and occupancy costs |
|
23,055 |
|
22,665 |
||
|
Office operations |
|
12,850 |
|
13,864 |
||
|
Processing expenses |
|
23,332 |
|
23,152 |
||
|
Marketing expenses |
|
9,953 |
|
9,875 |
||
|
Federal deposit insurance premiums |
|
7,101 |
|
9,054 |
||
|
Professional services |
|
5,224 |
|
2,728 |
||
|
Amortization of intangible assets |
|
1,819 |
|
2,784 |
||
|
Real estate owned expense |
|
1,625 |
|
2,901 |
||
|
Acquisition expense |
|
- |
|
1,229 |
||
|
Other expense |
|
8,673 |
|
7,547 |
||
|
|
Total noninterest expense |
|
200,227 |
|
196,508 |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
91,008 |
|
81,045 |
|
|
Income tax expense |
|
26,857 |
|
23,522 |
||
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ 64,151 |
|
57,523 |
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ 0.64 |
|
0.53 |
|||
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
$ 0.64 |
|
0.53 |
|||
|
|
|
|
|
|
|
|
Annualized return on average shareholders' equity |
|
5.24% |
|
4.40% |
|||
Annualized return on average assets |
|
0.80% |
|
0.71% |
|||
|
|
|
|
|
|
|
|
Basic common shares outstanding |
|
99,801,783 |
|
108,308,834 |
|||
Diluted common shares outstanding |
|
100,177,564 |
|
108,931,377 |
|||
|
|
|
|
|
|
|
|
Northwest Bancshares, Inc. and Subsidiaries |
|
|||||||||
Asset Quality |
|
|||||||||
(Dollars in thousands) |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Year ended |
|
||||
|
|
|
December 31, |
|
December 31, |
|
||||
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
Allowance for loan losses |
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ 73,208 |
|
77,245 |
|
76,412 |
|
70,403 |
|
|
Provision |
|
10,502 |
|
13,918 |
|
34,170 |
|
40,486 |
|
|
Charge-offs residential mortgage |
|
(1,530) |
|
(2,550) |
|
(4,198) |
|
(4,497) |
|
|
Charge-offs home equity |
|
(998) |
|
(1,146) |
|
(4,734) |
|
(4,104) |
|
|
Charge-offs other consumer |
|
(1,467) |
|
(1,643) |
|
(5,283) |
|
(6,390) |
|
|
Charge-offs commercial real estate |
|
(4,288) |
|
(5,953) |
|
(12,508) |
|
(12,576) |
|
|
Charge-offs commercial |
|
(4,935) |
|
(4,365) |
|
(15,641) |
|
(9,305) |
|
|
Recoveries |
|
646 |
|
906 |
|
2,920 |
|
2,395 |
|
|
Ending balance |
|
$ 71,138 |
|
76,412 |
|
71,138 |
|
76,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to average loans, annualized |
|
0.91% |
|
1.06% |
|
0.72% |
|
0.63% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
||||||
|
|
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
Nonperforming loans |
|
$ 131,105 |
|
148,391 |
|
124,626 |
|
99,203 |
|
|
Real estate owned, net |
|
26,887 |
|
20,780 |
|
20,257 |
|
16,844 |
|
|
Nonperforming assets |
|
$ 157,992 |
|
169,171 |
|
144,883 |
|
116,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual troubled debt restructuring * |
|
$ 26,908 |
|
41,740 |
|
2,908 |
|
- |
|
|
Accruing troubled debt restructuring |
|
39,854 |
|
10,865 |
|
18,177 |
|
- |
|
|
Total troubled debt restructuring |
|
$ 66,762 |
|
52,605 |
|
21,085 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans |
|
2.36% |
|
2.68% |
|
2.35% |
|
1.91% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
1.99% |
|
2.08% |
|
1.81% |
|
1.67% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans |
|
1.28% |
|
1.38% |
|
1.33% |
|
1.06% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to nonperforming loans |
|
54.26% |
|
51.49% |
|
56.49% |
|
55.37% |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts included in nonperforming loans above. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest Bancshares, Inc. and Subsidiaries |
|||||||
Non-accrual loans delinquency |
|||||||
(Dollars in thousands) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011 |
|
December 31, 2010 |
|
December 31, 2009 |
|
|
|
|
|
|
|
|
Non-accrual loans current: |
|
|
|
|
|
|
|
|
Residential mortgage loans |
$ |
- |
|
- |
|
- |
|
Home equity loans |
|
- |
|
- |
|
- |
|
Other consumer loans |
|
- |
|
- |
|
- |
|
Commercial real estate loans |
|
13,057 |
|
7,378 |
|
- |
|
Commercial loans |
|
13,480 |
|
23,317 |
|
13,141 |
Total non-accrual loans current |
$ |
26,537 |
|
30,695 |
|
13,141 |
|
|
|
|
|
|
|
|
|
Non-accrual loans delinquent 30 days to 59 days: |
|
|
|
|
|
|
|
|
Residential mortgage loans |
$ |
- |
|
- |
|
- |
|
Home equity loans |
|
- |
|
- |
|
- |
|
Other consumer loans |
|
- |
|
- |
|
- |
|
Commercial real estate loans |
|
3,274 |
|
4,039 |
|
- |
|
Commercial loans |
|
90 |
|
1,465 |
|
- |
Total non-accrual loans delinquent 30 days to 59 days |
$ |
3,364 |
|
5,504 |
|
- |
|
|
|
|
|
|
|
|
|
Non-accrual loans delinquent 60 days to 89 days: |
|
|
|
|
|
|
|
|
Residential mortgage loans |
$ |
- |
|
- |
|
- |
|
Home equity loans |
|
- |
|
- |
|
- |
|
Other consumer loans |
|
- |
|
- |
|
- |
|
Commercial real estate loans |
|
1,560 |
|
10,923 |
|
1,705 |
|
Commercial loans |
|
3,808 |
|
848 |
|
- |
Total non-accrual loans delinquent 60 days to 89 days |
$ |
5,368 |
|
11,771 |
|
1,705 |
|
|
|
|
|
|
|
|
|
Non-accrual loans delinquent 90 days or more: |
|
|
|
|
|
|
|
|
Residential mortgage loans |
$ |
28,221 |
|
29,751 |
|
29,134 |
|
Home equity loans |
|
9,560 |
|
10,263 |
|
10,008 |
|
Other consumer loans |
|
2,667 |
|
2,565 |
|
2,775 |
|
Commercial real estate loans |
|
44,603 |
|
44,965 |
|
49,594 |
|
Commercial loans |
|
10,785 |
|
12,877 |
|
18,269 |
Total non- accrual loans delinquent 90 days or more |
$ |
95,836 |
|
100,421 |
|
109,780 |
|
|
|
|
|
|
|
|
|
Total non-accrual loans |
$ |
131,105 |
|
148,391 |
|
124,626 |
|
|
|
|
|
|
|
|
|
Northwest Bancshares, Inc. and Subsidiaries |
|||||||||||||
Delinquency |
|||||||||||||
(Dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan delinquency schedule |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Number of loans and dollar amount of loans) |
|
|
|
|
|
|
|
|
|
|
||
|
|
December 31, |
|
||||||||||
|
|
2011 |
* |
|
2010 |
* |
|
2009 |
* |
|
|||
Loans delinquent 30 days to 59 days: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans |
427 |
$ 33,671 |
1.4% |
|
427 |
$ 35,329 |
1.5% |
|
343 |
$ 27,913 |
1.2% |
|
|
Home equity loans |
222 |
7,426 |
0.7% |
|
230 |
7,317 |
0.7% |
|
184 |
7,014 |
0.6% |
|
|
Other consumer loans |
903 |
4,854 |
2.0% |
|
1,008 |
5,318 |
2.1% |
|
923 |
4,297 |
1.6% |
|
|
Commercial real estate loans |
104 |
10,680 |
0.7% |
|
82 |
16,287 |
1.2% |
|
85 |
16,152 |
1.3% |
|
|
Commercial loans |
32 |
2,027 |
0.5% |
|
48 |
6,590 |
1.5% |
|
48 |
3,293 |
0.9% |
|
Total loans delinquent 30 days to 59 days |
1,688 |
$ 58,658 |
1.1% |
|
1,795 |
$ 70,841 |
1.3% |
|
1,583 |
$ 58,669 |
1.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60 days to 89 days: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans |
99 |
$ 8,629 |
0.4% |
|
106 |
$ 9,848 |
0.4% |
|
77 |
$ 6,657 |
0.3% |
|
|
Home equity loans |
47 |
1,953 |
0.2% |
|
81 |
3,249 |
0.3% |
|
52 |
1,719 |
0.2% |
|
|
Other consumer loans |
412 |
1,787 |
0.7% |
|
356 |
1,331 |
0.5% |
|
348 |
1,425 |
0.5% |
|
|
Commercial real estate loans |
38 |
3,122 |
0.2% |
|
39 |
14,365 |
1.1% |
|
35 |
5,811 |
0.5% |
|
|
Commercial loans |
25 |
4,958 |
1.3% |
|
9 |
1,678 |
0.4% |
|
26 |
2,474 |
0.7% |
|
Total loans delinquent 60 days to 89 days |
621 |
$ 20,449 |
0.4% |
|
591 |
$ 30,471 |
0.6% |
|
538 |
$ 18,086 |
0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90 days or more: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans |
273 |
$ 28,221 |
1.2% |
|
275 |
$ 29,751 |
1.2% |
|
265 |
$ 29,134 |
1.2% |
|
|
Home equity loans |
177 |
9,560 |
0.9% |
|
190 |
10,263 |
0.9% |
|
195 |
10,008 |
0.9% |
|
|
Other consumer loans |
456 |
2,667 |
1.1% |
|
374 |
2,565 |
1.0% |
|
546 |
2,775 |
1.0% |
|
|
Commercial real estate loans |
131 |
44,603 |
3.1% |
|
181 |
44,965 |
3.3% |
|
199 |
49,594 |
4.0% |
|
|
Commercial loans |
66 |
10,785 |
2.8% |
|
111 |
12,877 |
3.0% |
|
124 |
18,269 |
4.9% |
|
Total loans delinquent 90 days or more |
1,103 |
$ 95,836 |
1.7% |
|
1,131 |
$ 100,421 |
1.8% |
|
1,329 |
$ 109,780 |
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans delinquent |
3,412 |
$ 174,943 |
3.2% |
|
3,517 |
$ 201,733 |
3.7% |
|
3,450 |
$ 186,535 |
3.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - Represents delinquency, in dollars, divided by the respective total amount of that class of loan outstanding. |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest Bancshares, Inc. and Subsidiaries |
|
|||||||||||||
Analysis of loan portfolio by geographic location as of December 31, 2011: |
|
|||||||||||||
(Dollars in thousands) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans outstanding: |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Mortgage |
(1) |
Home equity |
(2) |
Other consumer |
(3) |
Commercial real estate loans |
(4) |
Commercial loans |
(5) |
Total |
(6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania |
|
$ 1,978,512 |
82.5% |
925,368 |
85.3% |
225,827 |
91.9% |
849,702 |
59.2% |
258,775 |
66.7% |
4,238,184 |
76.3% |
|
New York |
|
159,389 |
6.6% |
104,194 |
9.6% |
11,191 |
4.6% |
356,868 |
24.9% |
56,128 |
14.5% |
687,770 |
12.4% |
|
Ohio |
|
19,895 |
0.8% |
11,677 |
1.1% |
3,022 |
1.2% |
35,882 |
2.5% |
10,072 |
2.6% |
80,548 |
1.5% |
|
Maryland |
|
168,247 |
7.0% |
33,816 |
3.1% |
1,417 |
0.6% |
114,839 |
8.0% |
25,942 |
6.7% |
344,261 |
6.2% |
|
Florida |
|
27,551 |
1.1% |
8,057 |
0.7% |
1,473 |
0.6% |
40,904 |
2.8% |
17,340 |
4.5% |
95,325 |
1.7% |
|
All other |
|
43,772 |
1.8% |
1,674 |
0.2% |
2,759 |
1.1% |
37,572 |
2.6% |
19,654 |
5.1% |
105,431 |
1.9% |
|
Total |
|
$ 2,397,366 |
100.0% |
1,084,786 |
100.0% |
245,689 |
100.0% |
1,435,767 |
100.0% |
387,911 |
100.0% |
5,551,519 |
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - Percentage of total mortgage loans |
|
|
|||||||||||
|
(2) - Percentage of total home equity loans |
|
|
|||||||||||
|
(3) - Percentage of total other consumer loans |
|
|
|||||||||||
|
(4) - Percentage of total commercial real estate loans |
|
|
|||||||||||
|
(5) - Percentage of total commercial loans |
|
||||||||||||
|
(6) - Percentage of total loans |
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 90 or more past due: |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Mortgage |
(7) |
Home equity |
(8) |
Other consumer |
(9) |
Commercial real estate loans |
(10) |
Commercial loans |
(11) |
Total |
(12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania |
|
$ 16,971 |
0.9% |
6,559 |
0.7% |
2,537 |
1.1% |
17,753 |
2.1% |
5,075 |
2.0% |
48,895 |
1.2% |
|
New York |
|
1,358 |
0.9% |
1,031 |
1.0% |
54 |
0.5% |
8,625 |
2.4% |
281 |
0.5% |
11,349 |
1.7% |
|
Ohio |
|
305 |
1.5% |
23 |
0.2% |
23 |
0.8% |
88 |
0.2% |
- |
0.0% |
439 |
0.5% |
|
Maryland |
|
4,436 |
2.6% |
1,496 |
4.4% |
- |
0.0% |
6,573 |
5.7% |
2,514 |
9.7% |
15,019 |
4.4% |
|
Florida |
|
4,312 |
15.7% |
422 |
5.2% |
53 |
3.6% |
4,407 |
10.8% |
2,915 |
16.8% |
12,109 |
12.7% |
|
All other |
|
839 |
1.9% |
29 |
1.7% |
- |
0.0% |
7,157 |
19.0% |
- |
0.0% |
8,025 |
7.6% |
|
Total |
|
$ 28,221 |
1.2% |
9,560 |
0.9% |
2,667 |
1.1% |
44,603 |
3.1% |
10,785 |
2.8% |
95,836 |
1.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) - Percentage of total mortgage loans in that geographic area |
|
|
|||||||||||
|
(8) - Percentage of total home equity loans in that geographic area |
|
|
|||||||||||
|
(9) - Percentage of total other consumer loans in that geographic area |
|
|
|||||||||||
|
(10) - Percentage of total commercial real estate loans in that geographic area |
|
|
|||||||||||
|
(11) - Percentage of total commercial loans in that geographic area |
|
|
|||||||||||
|
(12) - Percentage of total loans in that geographic area |
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest Bancshares, Inc. and Subsidiaries |
|||||||||
Investment Portfolio |
|||||||||
(Dollars in thousands) |
|||||||||
|
|
|
|
|
|
|
|
|
|
Marketable securities available-for-sale as of December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
Gross |
|
|
|
|
|
|
|
unrealized |
|
unrealized |
|
|
|
|
|
Amortized |
|
holding |
|
holding |
|
Market |
|
|
|
cost |
|
gains |
|
losses |
|
value |
Debt issued by the U.S. government and agencies: |
|
|
|
|
|
|
|
|
|
|
Due in one year or less |
|
$ 59 |
|
- |
|
- |
|
59 |
|
|
|
|
|
|
|
|
|
|
Debt issued by government sponsored enterprises: |
|
|
|
|
|
|
|
|
|
|
Due in one year - five years |
|
36,295 |
|
134 |
|
- |
|
36,429 |
|
Due in five years - ten years |
|
29,557 |
|
638 |
|
(61) |
|
30,134 |
|
Due after ten years |
|
9,665 |
|
- |
|
(49) |
|
9,616 |
|
|
|
|
|
|
|
|
|
|
Equity securities |
|
12,080 |
|
644 |
|
(259) |
|
12,465 |
|
|
|
|
|
|
|
|
|
|
|
Municipal securities: |
|
|
|
|
|
|
|
|
|
|
Due in one year - five years |
|
10,633 |
|
291 |
|
- |
|
10,924 |
|
Due in five years - ten years |
|
27,817 |
|
1,336 |
|
- |
|
29,153 |
|
Due after ten years |
|
124,041 |
|
5,350 |
|
(180) |
|
129,211 |
|
|
|
|
|
|
|
|
|
|
Corporate trust preferred securities: |
|
|
|
|
|
|
|
|
|
|
Due in one year or less |
|
500 |
|
- |
|
- |
|
500 |
|
Due after ten years |
|
25,036 |
|
233 |
|
(4,635) |
|
20,634 |
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities: |
|
|
|
|
|
|
|
|
|
|
Fixed rate pass-through |
|
110,364 |
|
8,201 |
|
(1) |
|
118,564 |
|
Variable rate pass-through |
|
135,103 |
|
6,679 |
|
(4) |
|
141,778 |
|
Fixed rate non-agency CMO |
|
9,521 |
|
188 |
|
(735) |
|
8,974 |
|
Fixed rate agency CMO |
|
112,670 |
|
3,466 |
|
- |
|
116,136 |
|
Variable rate non-agency CMO |
|
1,104 |
|
- |
|
(154) |
|
950 |
|
Variable rate agency CMO |
|
240,963 |
|
1,991 |
|
(132) |
|
242,822 |
|
|
|
|
|
|
|
|
|
|
|
Total mortgage-backed securities |
|
609,725 |
|
20,525 |
|
(1,026) |
|
629,224 |
|
|
|
|
|
|
|
|
|
|
|
Total marketable securities available-for-sale |
|
$ 885,408 |
|
29,151 |
|
(6,210) |
|
908,349 |
|
|
|
|
|
|
|
|
|
|
Marketable securities held-to-maturity as of December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
Gross |
|
|
|
|
|
|
|
unrealized |
|
unrealized |
|
|
|
|
|
Amortized |
|
holding |
|
holding |
|
Market |
|
|
|
cost |
|
gains |
|
losses |
|
value |
|
|
|
|
|
|
|
|
|
|
Municipal securities: |
|
|
|
|
|
|
|
|
|
|
Due in five years - ten years |
|
3,677 |
|
174 |
|
- |
|
3,851 |
|
Due after ten years |
|
71,015 |
|
3,615 |
|
- |
|
74,630 |
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities: |
|
|
|
|
|
|
|
|
|
|
Fixed rate pass-through |
|
24,160 |
|
1,099 |
|
- |
|
25,259 |
|
Variable rate pass-through |
|
9,066 |
|
94 |
|
- |
|
9,160 |
|
Fixed rate agency CMO |
|
108,881 |
|
2,761 |
|
- |
|
111,642 |
|
Variable rate agency CMO |
|
14,590 |
|
280 |
|
- |
|
14,870 |
|
|
|
|
|
|
|
|
|
|
|
Total mortgage-backed securities |
|
156,697 |
|
4,234 |
|
- |
|
160,931 |
|
|
|
|
|
|
|
|
|
|
|
Total marketable securities held-to-maturity |
|
$ 231,389 |
|
8,023 |
|
- |
|
239,412 |
|
|
|
|
|
|
|
|
|
|
Issuers of mortgage-backed securities as of December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
Fannie Mae |
|
$ 324,439 |
|
11,487 |
|
(73) |
|
335,853 |
|
Ginnie Mae |
|
139,901 |
|
4,050 |
|
- |
|
143,951 |
|
Freddie Mac |
|
272,095 |
|
9,034 |
|
(51) |
|
281,078 |
|
SBA |
|
18,637 |
|
- |
|
(13) |
|
18,624 |
|
Non-agency |
|
11,350 |
|
188 |
|
(889) |
|
10,649 |
|
Total |
|
$ 766,422 |
|
24,759 |
|
(1,026) |
|
790,155 |
|
|
|
|
|
|
|
|
|
|
Northwest Bancshares, Inc. and Subsidiaries |
||||||
Investment Portfolio - Continued |
||||||
(Dollars in thousands) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book |
|
As a % |
|
|
|
|
Value |
|
of Book |
|
|
|
|
12/31/2011 |
|
Value |
|
Municipal securities by state: |
|
|
|
|
|
|
|
Pennsylvania |
|
|
|
|
|
|
School district |
|
$ 114,699 |
|
48.4% |
|
|
General obligation |
|
41,766 |
|
17.6% |
|
|
Revenue bonds |
|
4,709 |
|
2.0% |
|
|
Total Pennsylvania |
|
161,174 |
|
68.0% |
|
|
New York |
|
33,679 |
|
14.2% |
|
|
Ohio |
|
6,426 |
|
2.7% |
|
|
All other states |
|
35,904 |
|
15.1% |
|
|
|
|
$ 237,183 |
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet - unaudited |
|
||||||
(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. |
|
|
|||||
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|||||
|
2011 |
2010 |
|
||||
|
Average |
Interest |
Avg. |
Average |
Interest |
Avg. |
|
|
Balance |
(h) |
Yield/ |
Balance |
(h) |
Yield/ |
|
|
|
|
Cost |
|
|
Cost |
|
Assets: |
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
Loans receivable (a) (b) (d) |
$ 5,544,194 |
80,395 |
5.79% |
5,565,989 |
83,491 |
5.99% |
|
Mortgage-backed securities (c) |
797,071 |
5,077 |
2.55% |
879,958 |
5,886 |
2.68% |
|
Investment securities (c) (d) |
376,545 |
4,776 |
5.07% |
365,003 |
5,213 |
5.71% |
|
FHLB stock |
49,775 |
- |
- |
61,042 |
- |
- |
|
Other interest-earning deposits |
615,906 |
423 |
0.27% |
721,174 |
496 |
0.27% |
|
|
|
|
|
|
|
|
|
Total interest-earning assets |
7,383,491 |
90,671 |
4.90% |
7,593,166 |
95,086 |
5.00% |
|
|
|
|
|
|
|
|
|
Noninterest earning assets (e) |
571,873 |
|
|
588,945 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ 7,955,364 |
|
|
8,182,111 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
Savings accounts |
$ 1,064,533 |
1,139 |
0.42% |
1,058,373 |
1,695 |
0.64% |
|
Interest-bearing demand accounts |
787,674 |
238 |
0.12% |
786,488 |
249 |
0.13% |
|
Money market accounts |
959,378 |
1,013 |
0.42% |
906,414 |
1,209 |
0.53% |
|
Certificate accounts |
2,308,440 |
11,837 |
2.03% |
2,456,893 |
13,872 |
2.24% |
|
Borrowed funds (f) |
836,948 |
6,604 |
3.13% |
892,461 |
7,326 |
3.26% |
|
Junior subordinated debentures |
103,094 |
1,437 |
5.45% |
103,094 |
1,436 |
5.45% |
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
6,060,067 |
22,268 |
1.46% |
6,203,723 |
25,787 |
1.65% |
|
|
|
|
|
|
|
|
|
Noninterest bearing liabilities (g) |
734,898 |
|
|
671,412 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
6,794,965 |
|
|
6,875,135 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
1,160,399 |
|
|
1,306,976 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ 7,955,364 |
|
|
8,182,111 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income/ Interest rate spread |
|
68,403 |
3.44% |
|
69,299 |
3.35% |
|
|
|
|
|
|
|
|
|
Net interest-earning assets/ Net interest margin |
$ 1,323,424 |
|
3.71% |
1,389,443 |
|
3.65% |
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets to |
|
|
|
|
|
|
|
interest-bearing liabilities |
1.22X |
|
|
1.22X |
|
|
|
|
|
|
|
|
|
|
|
(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, securities sold under agreements to repurchase and other borrowings. |
|
||||||
(g) Average balances include non-interest bearing demand deposits (checking accounts). |
|
||||||
(h) Shown on a FTE basis. GAAP basis yields were: Loans - 5.76% and 5.96%, respectively, Investment securities - 3.59% and 3.88%, respectively, |
|
||||||
Interest-earning assets - 4.80% and 4.89%, respectively. GAAP basis net interest rate spreads were 3.34% and 3.24%, respectively, |
|
||||||
and GAAP basis net interest margins were 3.60% and 3.54%, respectively. |
|
||||||
|
|
|
|
|
|
|
|
Average Balance Sheet - unaudited |
|
||||||
(Dollars in thousands) |
|
||||||
|
|
|
|
|
|
|
|
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and |
|
||||||
average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of |
|
||||||
assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages. |
|
|
|||||
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|||||
|
2011 |
2010 |
|
||||
|
Average |
Interest |
Avg. |
Average |
Interest |
Avg. |
|
|
Balance |
(h) |
Yield/ |
Balance |
(h) |
Yield/ |
|
|
|
|
Cost |
|
|
Cost |
|
Assets: |
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
Loans receivable (a) (b) (d) |
$ 5,508,790 |
322,656 |
5.85% |
5,487,645 |
330,431 |
6.03% |
|
Mortgage-backed securities (c) |
874,366 |
23,450 |
2.68% |
816,182 |
25,271 |
3.10% |
|
Investment securities (c) (d) |
384,389 |
20,166 |
5.25% |
369,858 |
20,572 |
5.56% |
|
FHLB stock |
53,985 |
- |
- |
62,688 |
- |
- |
|
Other interest-earning deposits |
665,074 |
1,712 |
0.25% |
805,161 |
2,097 |
0.26% |
|
|
|
|
|
|
|
|
|
Total interest-earning assets |
7,486,604 |
367,984 |
4.91% |
7,541,534 |
378,371 |
5.02% |
|
|
|
|
|
|
|
|
|
Noninterest earning assets (e) |
570,888 |
|
|
578,317 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ 8,057,492 |
|
|
8,119,851 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
Savings accounts |
$ 1,075,890 |
5,000 |
0.46% |
1,031,362 |
8,166 |
0.79% |
|
Interest-bearing demand accounts |
793,287 |
960 |
0.12% |
776,091 |
1,211 |
0.16% |
|
Money market accounts |
939,317 |
4,243 |
0.45% |
888,081 |
5,977 |
0.67% |
|
Certificate accounts |
2,362,313 |
50,518 |
2.14% |
2,483,481 |
59,820 |
2.41% |
|
Borrowed funds (f) |
841,748 |
26,381 |
3.13% |
896,843 |
32,054 |
3.57% |
|
Junior subordinated debentures |
103,094 |
5,699 |
5.45% |
103,094 |
5,699 |
5.45% |
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
6,115,649 |
92,801 |
1.52% |
6,178,952 |
112,927 |
1.83% |
|
|
|
|
|
|
|
|
|
Noninterest bearing liabilities (g) |
718,434 |
|
|
634,119 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
6,834,083 |
|
|
6,813,071 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
1,223,409 |
|
|
1,306,780 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ 8,057,492 |
|
|
8,119,851 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income/ Interest rate spread |
|
275,183 |
3.39% |
|
265,444 |
3.19% |
|
|
|
|
|
|
|
|
|
Net interest-earning assets/ Net interest margin |
$ 1,370,955 |
|
3.68% |
1,362,582 |
|
3.52% |
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets to |
|
|
|
|
|
|
|
interest-bearing liabilities |
1.22X |
|
|
1.22X |
|
|
|
|
|
|
|
|
|
|
|
(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, securities sold under agreements to repurchase and other borrowings. |
|
||||||
(g) Average balances include non-interest bearing demand deposits (checking accounts). |
|
||||||
(h) Shown on a FTE basis. GAAP basis yields were: Loans - 5.82% and 6.00%, respectively, Investment securities - 3.63% and 3.85%, respectively, |
|
||||||
Interest-earning assets - 4.80% and 4.92%, respectively. GAAP basis net interest rate spreads were 3.29% and 3.09%, respectively, |
|
||||||
and GAAP basis net interest margins were 3.57% and 3.42%, respectively. |
|
||||||
|
|
|
|
|
|
|
|
Average Balance Sheet - unaudited |
|
||||||
(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. |
|
|
|||||
|
|
|
|
|
|
|
|
|
Three months ended |
Three months ended |
|
||||
|
December 31, 2011 |
September 30, 2011 |
|
||||
|
Average |
Interest |
Avg. |
Average |
Interest |
Avg. |
|
|
Balance |
(h) |
Yield/ |
Balance |
(h) |
Yield/ |
|
|
|
|
Cost |
|
|
Cost |
|
Assets: |
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
Loans receivable (a) (b) (d) |
$ 5,544,194 |
80,395 |
5.79% |
5,490,795 |
81,025 |
5.86% |
|
Mortgage-backed securities (c) |
797,071 |
5,077 |
2.55% |
857,898 |
5,544 |
2.58% |
|
Investment securities (c) (d) |
376,545 |
4,776 |
5.07% |
412,927 |
5,066 |
4.91% |
|
FHLB stock |
49,775 |
- |
- |
52,336 |
- |
- |
|
Other interest-earning deposits |
615,906 |
423 |
0.27% |
652,958 |
393 |
0.24% |
|
|
|
|
|
|
|
|
|
Total interest-earning assets |
7,383,491 |
90,671 |
4.90% |
7,466,914 |
92,028 |
4.90% |
|
|
|
|
|
|
|
|
|
Noninterest earning assets (e) |
571,873 |
|
|
560,951 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ 7,955,364 |
|
|
8,027,865 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
Savings accounts |
$ 1,064,533 |
1,139 |
0.42% |
1,081,721 |
1,157 |
0.42% |
|
Interest-bearing demand accounts |
787,674 |
238 |
0.12% |
798,424 |
244 |
0.12% |
|
Money market accounts |
959,378 |
1,013 |
0.42% |
950,113 |
1,016 |
0.42% |
|
Certificate accounts |
2,308,440 |
11,837 |
2.03% |
2,338,436 |
12,541 |
2.13% |
|
Borrowed funds (f) |
836,948 |
6,604 |
3.13% |
840,560 |
6,625 |
3.13% |
|
Junior subordinated debentures |
103,094 |
1,437 |
5.45% |
103,094 |
1,436 |
5.45% |
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
6,060,067 |
22,268 |
1.46% |
6,112,348 |
23,019 |
1.49% |
|
|
|
|
|
|
|
|
|
Noninterest bearing liabilities (g) |
734,898 |
|
|
726,173 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
6,794,965 |
|
|
6,838,521 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
1,160,399 |
|
|
1,189,344 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ 7,955,364 |
|
|
8,027,865 |
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|
|
|
|
|
|
|
|
|
|
Net interest income/ Interest rate spread |
|
68,403 |
3.44% |
|
69,009 |
3.41% |
|
|
|
|
|
|
|
|
|
Net interest-earning assets/ Net interest margin |
$ 1,323,424 |
|
3.71% |
1,354,566 |
|
3.70% |
|
|
|
|
|
|
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|
Ratio of interest-earning assets to |
|
|
|
|
|
|
|
interest-bearing liabilities |
1.22X |
|
|
1.22X |
|
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(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status. |
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(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material. |
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(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale. |
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(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis. |
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(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
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(f) Average balances include FHLB borrowings, securities sold under agreements to repurchase and other borrowings. |
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(g) Average balances include non-interest bearing demand deposits (checking accounts). |
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(h) Shown on a FTE basis. GAAP basis yields were: Loans - 5.76% and 5.82%, respectively, Investment securities - 3.59% and 3.42%, respectively, |
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Interest-earning assets - 4.80% and 4.79%, respectively. GAAP basis net interest rate spreads were 3.34% and 3.29%, respectively, |
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and GAAP basis net interest margins were 3.60% and 3.59%, respectively. |
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SOURCE Northwest Bancshares, Inc.
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