WARREN, Pa., Nov. 8, 2010 /PRNewswire-FirstCall/ -- Northwest
Bancshares, Inc. ("Northwest") (Nasdaq: NWBI) the holding company
for Northwest Savings Bank, announced that its Agreement and Plan
of Merger, dated May 5, 2010, with
NexTier, Inc., the holding company for NexTier Bank, has been
terminated.
The termination of the merger agreement was based on the
expectation that the merger would not receive required approval
from Northwest Savings Bank's primary federal regulator, the
Federal Deposit Insurance Corporation ("FDIC"). As the result
of a recently completed, regularly scheduled compliance
examination, the FDIC criticized various components of Northwest
Savings Bank's consumer compliance program. Northwest Savings
Bank is taking steps to promptly address the issues identified by
the FDIC. Northwest Savings Bank expects to receive a formal
enforcement order concerning its compliance program. As a
result of the foregoing, the FDIC requested that Northwest Savings
Bank withdraw its merger application to acquire NexTier Bank,
National Association.
About Northwest Bancshares, Inc. and Northwest Savings
Bank
Founded in 1896 and headquartered in Warren, Pennsylvania, Northwest Bancshares,
Inc., through its subsidiary Northwest Savings Bank, currently
operates 171 community banking locations in Pennsylvania, New
York, Ohio, Maryland and Florida. Northwest Savings Bank is a
full-service financial institution offering a complete line of
retail and business banking products as well as investment
management and trust services. The Company also operates 52
consumer finance offices in Pennsylvania through its subsidiary, Northwest
Consumer Discount Company. Northwest Bancshares, Inc.'s 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) increased regulatory scrutiny and/or restrictions
on Northwest Savings Bank; 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.
SOURCE Northwest Bancshares, Inc.