WARREN, Pa., Oct. 26, 2015
/PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI)
announced net income for the quarter ended September 30, 2015 of $12.9 million, or $0.13 per diluted share. The annualized returns
on average shareholders' equity and average assets for the quarter
ended September 30, 2015 were 4.54%
and 0.59%. Earnings for the current quarter include
acquisition expenses of $7.6 million
relating to the merger of LNB Bancorp, Inc. ("LNB") on August 14, 2015. Excluding the after-tax
impact of these expenses, non-GAAP net operating income for the
quarter was $17.9 million, or
$0.19 per diluted share, compared to
$17.3 million, or $0.19 per diluted share in the same quarter last
year. The non-GAAP annualized returns on average
shareholders' equity and average assets for the quarter ended
September 30, 2015 were 6.30% and
0.82% compared to 6.43% and 0.87% in the previous year.
The Company also announced that its Board of Directors declared
a quarterly cash dividend of $0.14
per share payable on November 19,
2015, to shareholders of record as of November 5, 2015. This represents the
84th consecutive quarter in which the Company has paid a
cash dividend.
In making this announcement, William J.
Wagner, President and CEO, noted, "We are pleased to have
completed the acquisition of LNB Bancorp, Inc. and Lorain National Bank during the current quarter,
our first acquisition of a bank since 2008. This merger
brings additional talent, twenty-one community banking offices and
over 55,000 new customers to Northwest. It also greatly
increases our presence in a market that we feel presents great
opportunities for our institution. Because the transaction
was closed mid-quarter, and because certain transitional expenses
were incurred, the accretive impact on earnings from this merger
will not be fully realized until the fourth quarter of 2015.
Finally, we believe the potential to leverage the benefits of this
transaction will provide additional opportunities to enhance
shareholder value. We are also pleased to report solid
earnings for the quarter as our net interest margin remained stable
and noninterest income continues to improve.
Noninterest expense, exclusive of the impact of the LNB merger,
continues to be controlled, and we remain focused on improving our
efficiency."
Net interest income increased by $4.6
million, or 7.4%, to $66.9
million for the quarter ended September 30, 2015, from $62.3 million for the quarter ended September 30, 2014. This increase is primarily
due to a $5.3 million increase in
interest income on loans, which was fueled by a $1.16 billion increase in the company's loan
portfolio over the past twelve months. The substantial
increase in loans resulted from internal growth of $218.5 million, or 3.6%, for the first nine
months of 2015, while the acquisition of LNB provided net loans of
$943.2 million. Also
contributing to the increase in net interest income was a
$142,000 decrease in interest on
deposits, as the company's cost of funds decreased sufficiently
over the past year to offset the cost of the $1.010 billion of deposits acquired during the
quarter from the LNB merger.
The provision for loan losses decreased by $299,000, or 8.6%, to $3.2
million for the quarter ended September 30, 2015, from $3.5 million for the quarter ended September 30, 2014 as overall asset quality
improved compared to last year. Loans 90 days or more delinquent
decreased by $9.1 million, or 19.8%,
to $36.8 million at September 30, 2015 from $45.9 million at September
30, 2014, while total nonaccrual loans decreased by
$21.9 million, or 24.4%, to
$67.9 million at September 30, 2015 from $89.8 million last year.
Noninterest income increased by $403,000, or 2.3%, to $18.1 million for the quarter ended September 30, 2015, from $17.7 million for the quarter ended September 30, 2014. This increase is due
primarily to an increase in insurance commission income of
$620,000, or 34.9%, related to the
company's acquisition of its third insurance agency over the past
four years on January 1, 2015. Also
contributing to the increase in noninterest income was an increase
in service charges and fees of $280,000, or 2.9%. This increase was attributable
to additional fees earned from the continued growth in checking
accounts as well as from the additional checking accounts provided
by the merger with LNB. Partially offsetting these increases was a
decrease in gain on sale of investments of $592,000, as the company sold $1.4 million of bank stocks in 2014 at a
considerable profit.
Noninterest expense increased by $10.4
million, or 19.6%, to $63.8
million for the quarter ended September 30, 2015, from $53.4 million for the quarter ended September 30, 2014. This increase resulted
primarily to acquisition expenses of $7.6
million incurred during the current quarter relating to the
merger of LNB. The cost of the employees acquired in the LNB
merger also contributed greatly to an increase in compensation and
employee benefits of $3.0 million, or
10.5%, in the current quarter as compared to the previous year.
Also contributing to the increase in noninterest expense was
an increase in processing expenses of $1.4
million, or 20.9%, due primarily to recent technology
upgrades, including the implementation of enhanced customer
security for online financial transactions. Partially
offsetting these increases to noninterest expense was a decrease in
other expense of $1.4 million, or
43.6%, due primarily to the timing of charitable contributions.
Net income for the nine month period ended September 30, 2015 was $44.3 million, or $0.48 per diluted share. This represents a
decrease of $270,000, or 0.6%,
compared to the nine month period ended September 30, 2014, when net income was
$44.6 million, or $0.48 per diluted share. The annualized returns
on average shareholders' equity and average assets for the nine
month period ended September 30, 2015
were 5.47% and 0.73% compared to 5.44% and 0.75% for the same
period last year. This decrease is due primarily to the
acquisition of LNB which generated acquisition expenses of
$8.4 million as well as an increase
in compensation and employee benefits of $3.2 million. Also contributing to
the decrease in net income was a decrease in the gain on sale of
investments of $3.6 million as the
company sold $3.4 million of bank
stocks at a considerable gain. Offsetting these items which
negatively impacted income was a reduction in the provision for
loan losses of $14.1 million, or
73.4%, as asset quality continued to improve. Non-GAAP net
operating income for the nine month period ended September 30, 2015, which excludes the after-tax
impact of the aforementioned acquisition expenses of $8.4 million, was $49.9
million, or $0.54 per diluted
share. This represents an increase of $5.3
million, or 11.8%, compared to the nine month period ended
September 30, 2014 when net income
was $44.6 million, or $0.48 per diluted share. The non-GAAP annualized
returns on average shareholders' equity and average assets for the
nine month period ended September 30,
2015 were 6.15% and 0.82% compared to 5.44% and 0.75% for
the same period last year.
Headquartered in Warren,
Pennsylvania, Northwest Bancshares, Inc. is the holding
company of Northwest Savings Bank. Founded in 1896, Northwest
Savings Bank is a full-service financial institution offering a
complete line of business and personal banking products, employee
benefits and wealth management services, as well as the fulfillment
of business and personal insurance needs. Northwest operates 181
community banking offices in Pennsylvania, New
York, Ohio and Maryland and 51 consumer finance offices in
Pennsylvania through its
subsidiary, Northwest Consumer Discount Company. Northwest
Bancshares, Inc.'s common stock is listed on the NASDAQ Global
Select Market ("NWBI"). Additional information regarding Northwest
Bancshares, Inc. and Northwest Bank can be accessed on-line at
www.northwestsavingsbank.com.
Forward-Looking Statements - This release may contain
forward-looking statements with respect to the financial condition
and results of operations of Northwest Bancshares, Inc. including,
without limitations, statements relating to the earnings outlook of
the Company. These forward-looking statements involve certain risks
and uncertainties. Factors that may cause actual results to differ
materially from those contemplated by such forward-looking
statements, include among others, the following possibilities: (1)
changes in the interest rate environment; (2) competitive pressure
among financial services companies; (3) general economic conditions
including an increase in non-performing loans; (4) changes in
legislation or regulatory requirements; (5) difficulties in
continuing to improve operating efficiencies; (6) difficulties in
the integration of acquired businesses; and (7) increased risk
associated with commercial real-estate and business loans.
Management has no obligation to revise or update these
forward-looking statements to reflect events or circumstances that
arise after the date of this release.
Northwest
Bancshares, Inc. and Subsidiaries
|
|
Consolidated
Statements of Financial Condition (Unaudited)
|
|
(Dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
Assets
|
|
2015
|
|
2014
|
|
Cash and cash
equivalents
|
|
|
|
$
91,406
|
|
87,401
|
|
Interest-earning
deposits in other financial institutions
|
|
3,206
|
|
152,671
|
|
Federal funds sold
and other short-term investments
|
|
1,013
|
|
634
|
|
Marketable securities
available-for-sale (amortized cost of $965,965 and
$906,702)
|
976,677
|
|
912,371
|
|
Marketable securities
held-to-maturity (fair value of $48,511 and $106,292)
|
|
47,299
|
|
103,695
|
|
|
Total cash,
interest-earning deposits and marketable securities
|
|
1,119,601
|
|
1,256,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
|
|
2,712,537
|
|
2,521,456
|
|
Home equity
loans
|
|
|
|
|
|
1,203,190
|
|
1,066,131
|
|
Other consumer
loans
|
|
|
|
|
494,714
|
|
242,744
|
|
Commercial real
estate loans
|
|
|
2,330,864
|
|
1,801,184
|
|
Commercial
loans
|
|
|
|
|
|
410,308
|
|
358,376
|
|
|
Total loans
receivable
|
|
|
|
7,151,613
|
|
5,989,891
|
|
Allowance for loan
losses
|
|
|
|
(60,547)
|
|
(67,518)
|
|
|
Loans receivable,
net
|
|
|
|
7,091,066
|
|
5,922,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan
Bank stock, at cost
|
|
|
40,115
|
|
33,293
|
|
Accrued interest
receivable
|
|
|
|
22,098
|
|
18,623
|
|
Real estate owned,
net
|
|
|
|
|
10,391
|
|
16,759
|
|
Premises and
Equipment, net
|
|
|
153,841
|
|
143,909
|
|
Bank owned life
insurance
|
|
|
|
167,258
|
|
144,362
|
|
Goodwill
|
|
|
|
|
|
258,367
|
|
175,323
|
|
Other intangible
assets
|
|
|
|
|
9,712
|
|
3,033
|
|
Other
assets
|
|
|
|
|
|
62,459
|
|
60,586
|
|
|
Total
assets
|
|
|
|
|
|
$
8,934,908
|
|
7,775,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
|
$
1,127,864
|
|
891,248
|
|
Interest-bearing
demand deposits
|
|
|
1,097,969
|
|
874,623
|
|
Money market deposit
accounts
|
|
|
1,277,878
|
|
1,179,070
|
|
Savings
deposits
|
|
|
|
|
|
1,378,958
|
|
1,209,287
|
|
Time
deposits
|
|
|
|
|
|
1,762,073
|
|
1,478,314
|
|
|
Total
deposits
|
|
|
|
|
|
6,644,742
|
|
5,632,542
|
|
Borrowed
funds
|
|
|
|
|
|
927,219
|
|
888,109
|
|
Advances by borrowers
for taxes and insurance
|
|
18,216
|
|
30,507
|
|
Accrued interest
payable
|
|
|
|
1,816
|
|
936
|
|
Other
liabilities
|
|
|
|
|
|
62,246
|
|
57,198
|
|
Junior subordinated
debentures
|
|
|
119,332
|
|
103,094
|
|
|
Total
liabilities
|
|
|
|
|
|
7,773,571
|
|
6,712,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 101,725,112
shares
|
|
|
|
|
|
and 94,721,453 shares
issued and outstanding, respectively
|
|
1,017
|
|
947
|
|
Paid-in-capital
|
|
|
|
|
|
714,730
|
|
626,134
|
|
Retained
earnings
|
|
|
|
|
|
487,048
|
|
481,577
|
|
Unallocated common
stock of Employee Stock Ownership Plan
|
|
(21,398)
|
|
(21,641)
|
|
Accumulated other
comprehensive loss
|
|
|
(20,060)
|
|
(24,370)
|
|
|
Total shareholders'
equity
|
|
|
1,161,337
|
|
1,062,647
|
|
|
Total liabilities and
shareholders' equity
|
|
$
8,934,908
|
|
7,775,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
13.00%
|
|
13.67%
|
|
|
|
|
|
Tangible common
equity to assets
|
|
10.31%
|
|
11.64%
|
|
|
|
|
|
Book value per
share
|
|
$
11.42
|
|
11.22
|
|
|
|
|
|
Tangible book value
per share
|
|
$
8.78
|
|
9.34
|
|
|
|
|
|
Closing market price
per share
|
|
$
13.00
|
|
12.53
|
|
|
|
|
|
Full time equivalent
employees
|
|
2,209
|
|
2,042
|
|
|
|
|
|
Number of banking
offices
|
|
182
|
|
162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
|
Consolidated
Statements of Income
|
|
(Dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
|
|
|
|
|
September
30,
|
|
June 30,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
Loans
receivable
|
|
$
76,087
|
|
70,820
|
|
70,985
|
|
|
Mortgage-backed
securities
|
|
2,230
|
|
2,504
|
|
2,058
|
|
|
Taxable investment
securities
|
|
1,689
|
|
1,456
|
|
1,604
|
|
|
Tax-free investment
securities
|
|
986
|
|
1,561
|
|
1,143
|
|
|
Interest-earning
deposits
|
|
99
|
|
187
|
|
180
|
|
|
|
Total interest
income
|
|
81,091
|
|
76,528
|
|
75,970
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
Deposits
|
|
6,163
|
|
6,305
|
|
5,691
|
|
|
Borrowed
funds
|
|
7,987
|
|
7,882
|
|
8,101
|
|
|
|
Total interest
expense
|
|
14,150
|
|
14,187
|
|
13,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
66,941
|
|
62,341
|
|
62,178
|
|
Provision for loan
losses
|
|
3,167
|
|
3,466
|
|
1,050
|
|
|
|
Net interest income
after provision for loan losses
|
|
63,774
|
|
58,875
|
|
61,128
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
Gain on sale of
investments
|
|
260
|
|
852
|
|
566
|
|
|
Service charges and
fees
|
|
9,945
|
|
9,665
|
|
9,228
|
|
|
Trust and other
financial services income
|
|
3,062
|
|
2,976
|
|
3,094
|
|
|
Insurance commission
income
|
|
2,398
|
|
1,778
|
|
2,210
|
|
|
Loss on real estate
owned, net
|
|
(246)
|
|
(240)
|
|
(541)
|
|
|
Income from bank
owned life insurance
|
|
1,166
|
|
1,083
|
|
1,008
|
|
|
Mortgage banking
income
|
|
267
|
|
239
|
|
218
|
|
|
Other operating
income
|
|
1,288
|
|
1,384
|
|
742
|
|
|
|
Total noninterest
income
|
|
18,140
|
|
17,737
|
|
16,525
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
31,000
|
|
28,047
|
|
28,920
|
|
|
Premises and
occupancy costs
|
|
6,072
|
|
5,642
|
|
5,899
|
|
|
Office
operations
|
|
3,892
|
|
3,419
|
|
3,508
|
|
|
Processing
expenses
|
|
8,126
|
|
6,723
|
|
7,392
|
|
|
Marketing
expenses
|
|
1,691
|
|
2,211
|
|
3,190
|
|
|
Federal deposit
insurance premiums
|
|
1,177
|
|
1,242
|
|
1,286
|
|
|
Professional
services
|
|
1,529
|
|
1,854
|
|
1,652
|
|
|
Amortization of
intangible assets
|
|
422
|
|
330
|
|
269
|
|
|
Real estate owned
expense
|
|
471
|
|
636
|
|
514
|
|
|
Acquisition
expense
|
|
7,590
|
|
-
|
|
467
|
|
|
Other
expense
|
|
1,834
|
|
3,250
|
|
2,038
|
|
|
|
Total noninterest
expense
|
|
63,804
|
|
53,354
|
|
55,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
18,110
|
|
23,258
|
|
22,518
|
|
|
Income tax
expense
|
|
5,238
|
|
5,926
|
|
7,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
12,872
|
|
17,332
|
|
15,305
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
0.14
|
|
0.19
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
0.13
|
|
0.19
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average equity
|
|
4.54%
|
|
6.43%
|
|
5.77%
|
|
Annualized return on
average assets
|
|
0.59%
|
|
0.87%
|
|
0.78%
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic common shares
outstanding
|
|
95,256,807
|
|
91,745,512
|
|
91,538,172
|
|
Diluted common shares
outstanding
|
|
95,825,798
|
|
92,118,154
|
|
91,998,005
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
|
Consolidated
Statements of Income
|
|
(Dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Interest
income:
|
|
|
|
|
|
|
Loans
receivable
|
|
$
217,783
|
|
210,868
|
|
|
Mortgage-backed
securities
|
|
6,522
|
|
7,963
|
|
|
Taxable investment
securities
|
|
5,741
|
|
4,523
|
|
|
Tax-free investment
securities
|
|
3,477
|
|
4,814
|
|
|
Interest-earning
deposits
|
|
418
|
|
673
|
|
|
|
Total interest
income
|
|
233,941
|
|
228,841
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
Deposits
|
|
17,620
|
|
19,216
|
|
|
Borrowed
funds
|
|
24,221
|
|
23,389
|
|
|
|
Total interest
expense
|
|
41,841
|
|
42,605
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
192,100
|
|
186,236
|
|
Provision for loan
losses
|
|
5,117
|
|
19,236
|
|
|
|
Net interest income
after provision for loan losses
|
|
186,983
|
|
167,000
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
Gain on sale of
investments
|
|
921
|
|
4,549
|
|
|
Service charges and
fees
|
|
27,832
|
|
27,115
|
|
|
Trust and other
financial services income
|
|
8,932
|
|
9,078
|
|
|
Insurance commission
income
|
|
7,036
|
|
6,579
|
|
|
Loss on real estate
owned, net
|
|
(1,833)
|
|
(937)
|
|
|
Income from bank
owned life insurance
|
|
3,087
|
|
3,134
|
|
|
Mortgage banking
income
|
|
725
|
|
753
|
|
|
Other operating
income
|
|
2,590
|
|
3,274
|
|
|
|
Total noninterest
income
|
|
49,290
|
|
53,545
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
87,815
|
|
84,562
|
|
|
Premises and
occupancy costs
|
|
18,238
|
|
17,939
|
|
|
Office
operations
|
|
11,080
|
|
11,044
|
|
|
Processing
expenses
|
|
22,723
|
|
19,951
|
|
|
Marketing
expenses
|
|
6,857
|
|
6,779
|
|
|
Federal deposit
insurance premiums
|
|
3,810
|
|
3,877
|
|
|
Professional
services
|
|
4,973
|
|
5,691
|
|
|
Amortization of
intangible assets
|
|
959
|
|
992
|
|
|
Real estate owned
expense
|
|
1,677
|
|
1,734
|
|
|
Acquisition
expense
|
|
8,404
|
|
-
|
|
|
Other
expense
|
|
6,114
|
|
7,754
|
|
|
|
Total noninterest
expense
|
|
172,650
|
|
160,323
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
63,623
|
|
60,222
|
|
|
Income tax
expense
|
|
19,276
|
|
15,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
44,347
|
|
44,617
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
0.48
|
|
0.49
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
0.48
|
|
0.48
|
|
|
|
|
|
|
|
|
|
|
Annualized return on
average equity
|
|
5.47%
|
|
5.44%
|
|
Annualized return on
average assets
|
|
0.73%
|
|
0.75%
|
|
|
|
|
|
|
|
|
|
|
Basic common shares
outstanding
|
|
92,822,720
|
|
91,465,986
|
|
Diluted common shares
outstanding
|
|
93,256,099
|
|
92,333,110
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
|
|
Reconciliation of
Non-GAAP to GAAP Net Income *
|
|
|
(Dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Nine months
ended
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
Operating results
(non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
66,941
|
|
62,341
|
|
192,100
|
|
186,236
|
|
|
|
Provision for loan
losses
|
|
3,167
|
|
3,466
|
|
5,117
|
|
19,236
|
|
|
|
Noninterest
income
|
|
18,140
|
|
17,737
|
|
49,290
|
|
53,545
|
|
|
|
Noninterest
expense
|
|
56,214
|
|
53,354
|
|
164,246
|
|
160,323
|
|
|
|
Income
taxes
|
|
7,844
|
|
5,926
|
|
22,128
|
|
15,605
|
|
|
|
|
Net operating income
(non-GAAP)
|
$
|
17,856
|
|
17,332
|
|
49,899
|
|
44,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (non-GAAP)
|
$
|
0.19
|
|
0.19
|
|
0.54
|
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net
operating income to net income:
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income
(non-GAAP)
|
$
|
17,856
|
|
17,332
|
|
49,899
|
|
44,617
|
|
|
Nonoperating
expenses, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
expenses
|
|
(4,984)
|
|
-
|
|
(5,552)
|
|
-
|
|
|
|
|
Net income
(GAAP)
|
$
|
12,872
|
|
17,332
|
|
44,347
|
|
44,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
|
0.13
|
|
0.19
|
|
0.48
|
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*-
|
The table summarizes
the Company's results from operations on a GAAP basis and on an
operating (non-GAAP) basis for the
|
|
|
periods indicated.
Operating results exclude acquisition expenses net of tax benefit.
The Company believe this non-GAAP
|
|
|
presentation provides
a meaningful comparison of operational performance and
facilitates a more effective evaluation and
|
|
|
comparison of results
to assess performance in relation to ongoing operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
|
Asset
quality
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
June 30,
2015
|
|
September 30,
2014
|
|
December 31,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
current:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
1,900
|
|
$
1,655
|
|
1,645
|
|
1,169
|
|
|
Home equity
loans
|
|
1,471
|
|
1,345
|
|
1,542
|
|
1,527
|
|
|
Other consumer
loans
|
|
251
|
|
171
|
|
108
|
|
88
|
|
|
Commercial real
estate loans
|
|
19,602
|
|
8,596
|
|
24,193
|
|
25,657
|
|
|
Commercial
loans
|
|
4,877
|
|
5,096
|
|
9,775
|
|
3,963
|
|
Total nonaccrual
loans current
|
|
$
28,101
|
|
$
16,863
|
|
37,263
|
|
32,404
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
-
|
|
$
-
|
|
27
|
|
1,545
|
|
|
Home equity
loans
|
|
392
|
|
49
|
|
355
|
|
712
|
|
|
Other consumer
loans
|
|
155
|
|
77
|
|
149
|
|
48
|
|
|
Commercial real
estate loans
|
|
359
|
|
867
|
|
2,059
|
|
1,128
|
|
|
Commercial
loans
|
|
131
|
|
186
|
|
485
|
|
9
|
|
Total nonaccrual
loans delinquent 30 days to 59 days
|
|
$
1,037
|
|
$
1,179
|
|
3,075
|
|
3,442
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
1,097
|
|
$
1,197
|
|
782
|
|
784
|
|
|
Home equity
loans
|
|
260
|
|
472
|
|
585
|
|
724
|
|
|
Other consumer
loans
|
|
156
|
|
191
|
|
52
|
|
234
|
|
|
Commercial real
estate loans
|
|
416
|
|
504
|
|
1,476
|
|
763
|
|
|
Commercial
loans
|
|
11
|
|
119
|
|
660
|
|
131
|
|
Total nonaccrual
loans delinquent 60 days to 89 days
|
|
$
1,940
|
|
$
2,483
|
|
3,555
|
|
2,636
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
delinquent 90 days or more:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
16,510
|
|
$
16,125
|
|
20,319
|
|
17,696
|
|
|
Home equity
loans
|
|
4,546
|
|
4,616
|
|
6,802
|
|
6,606
|
|
|
Other consumer
loans
|
|
3,132
|
|
2,199
|
|
2,098
|
|
2,450
|
|
|
Commercial real
estate loans
|
|
10,565
|
|
12,673
|
|
13,552
|
|
11,099
|
|
|
Commercial
loans
|
|
2,074
|
|
1,858
|
|
3,162
|
|
3,475
|
|
Total nonaccrual
loans delinquent 90 days or more
|
|
$
36,827
|
|
$
37,471
|
|
45,933
|
|
41,326
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual
loans
|
|
$
67,905
|
|
$
57,996
|
|
89,826
|
|
79,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June 30,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
67,905
|
|
$
57,996
|
|
89,826
|
|
79,808
|
|
Loans 90 days past
maturity and still accruing
|
|
680
|
|
385
|
|
390
|
|
235
|
|
Nonperforming loans
|
|
68,585
|
|
58,381
|
|
90,216
|
|
80,043
|
|
Real estate owned,
net
|
|
10,391
|
|
13,864
|
|
15,007
|
|
16,759
|
|
Nonperforming assets
|
|
$
78,976
|
|
$
72,245
|
|
105,223
|
|
96,802
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual troubled
debt restructuring *
|
|
$
23,184
|
|
$
15,443
|
|
21,871
|
|
24,459
|
|
Accruing troubled
debt restructuring
|
|
26,154
|
|
40,741
|
|
39,995
|
|
37,329
|
|
Total troubled debt
restructuring
|
|
$
49,338
|
|
$
56,184
|
|
61,866
|
|
61,788
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
to total loans
|
|
0.96%
|
|
0.95%
|
|
1.51%
|
|
1.34%
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets
to total assets
|
|
0.88%
|
|
0.92%
|
|
1.34%
|
|
1.25%
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to total loans
|
|
0.85%
|
|
0.96%
|
|
1.20%
|
|
1.13%
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to nonperforming loans
|
|
94.54%
|
|
101.16%
|
|
79.42%
|
|
84.35%
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts included in
nonperforming loans above.
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
|
Loans by credit
quality indicators as of September 30, 2015
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment
|
|
|
|
|
|
|
|
Special
|
|
|
|
|
|
|
|
in loans
|
|
|
|
|
|
Pass
|
|
mention *
|
|
Substandard
**
|
|
Doubtful
|
|
Loss
|
|
receivable
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
2,699,670
|
|
-
|
|
11,512
|
|
-
|
|
1,355
|
|
2,712,537
|
|
|
|
Home equity
loans
|
|
1,198,779
|
|
-
|
|
4,411
|
|
-
|
|
-
|
|
1,203,190
|
|
|
|
Other consumer
loans
|
|
492,023
|
|
-
|
|
2,691
|
|
-
|
|
-
|
|
494,714
|
|
|
Total Personal
Banking
|
|
4,390,472
|
|
-
|
|
18,614
|
|
-
|
|
1,355
|
|
4,410,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate loans
|
|
2,154,439
|
|
33,339
|
|
143,086
|
|
-
|
|
-
|
|
2,330,864
|
|
|
|
Commercial
loans
|
|
353,366
|
|
19,364
|
|
37,413
|
|
165
|
|
-
|
|
410,308
|
|
|
Total Business
Banking
|
|
2,507,805
|
|
52,703
|
|
180,499
|
|
165
|
|
-
|
|
2,741,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
6,898,277
|
|
52,703
|
|
199,113
|
|
165
|
|
1,355
|
|
7,151,613
|
|
* - Includes $533,000
of acquired loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** - Includes $18.5
million of acquired loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
|
Loans by credit
quality indicators as of December 31, 2014
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment
|
|
|
|
|
|
|
|
Special
|
|
|
|
|
|
|
|
in loans
|
|
|
|
|
|
Pass
|
|
mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
receivable
|
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
$
2,507,269
|
|
-
|
|
12,763
|
|
-
|
|
1,424
|
|
2,521,456
|
|
|
|
Home equity
loans
|
|
1,059,525
|
|
-
|
|
6,606
|
|
-
|
|
-
|
|
1,066,131
|
|
|
|
Other consumer
loans
|
|
240,947
|
|
-
|
|
1,797
|
|
-
|
|
-
|
|
242,744
|
|
|
Total Personal
Banking
|
|
3,807,741
|
|
-
|
|
21,166
|
|
-
|
|
1,424
|
|
3,830,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate loans
|
|
1,618,269
|
|
36,908
|
|
145,502
|
|
505
|
|
-
|
|
1,801,184
|
|
|
|
Commercial
loans
|
|
286,234
|
|
23,690
|
|
46,280
|
|
2,172
|
|
-
|
|
358,376
|
|
|
Total Business
Banking
|
|
1,904,503
|
|
60,598
|
|
191,782
|
|
2,677
|
|
-
|
|
2,159,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
5,712,244
|
|
60,598
|
|
212,948
|
|
2,677
|
|
1,424
|
|
5,989,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
|
Delinquency
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan delinquency
schedule
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Number of loans and
dollar amount of loans)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
June 30,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
|
2015
|
*
|
|
2015
|
*
|
|
2014
|
*
|
|
2014
|
*
|
|
Loans delinquent 30
days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
75
|
$ 3,644
|
0.1%
|
|
64
|
$ 3,250
|
0.1%
|
|
79
|
$ 4,241
|
0.2%
|
|
377
|
$ 27,443
|
1.1%
|
|
|
Home equity
loans
|
149
|
5,770
|
0.5%
|
|
112
|
3,768
|
0.4%
|
|
151
|
5,856
|
0.5%
|
|
161
|
5,752
|
0.5%
|
|
|
Consumer
loans
|
1,214
|
6,324
|
1.3%
|
|
1,103
|
5,116
|
2.0%
|
|
1,105
|
5,076
|
2.1%
|
|
1,193
|
5,572
|
2.3%
|
|
|
Commercial real
estate loans
|
55
|
7,463
|
0.3%
|
|
39
|
3,788
|
0.2%
|
|
69
|
5,888
|
0.3%
|
|
56
|
4,956
|
0.3%
|
|
|
Commercial
loans
|
21
|
1,379
|
0.3%
|
|
21
|
1,363
|
0.4%
|
|
22
|
1,413
|
0.4%
|
|
26
|
2,262
|
0.6%
|
|
Total loans
delinquent 30 days to 59 days
|
1,514
|
$
24,580
|
0.3%
|
|
1,339
|
$
17,285
|
0.3%
|
|
1,426
|
$
22,474
|
0.4%
|
|
1,813
|
$
45,985
|
0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60
days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
83
|
$ 5,193
|
0.2%
|
|
70
|
$ 5,815
|
0.2%
|
|
87
|
$ 6,558
|
0.3%
|
|
100
|
$ 6,970
|
0.3%
|
|
|
Home equity
loans
|
52
|
1,716
|
0.1%
|
|
39
|
2,090
|
0.2%
|
|
54
|
1,727
|
0.2%
|
|
49
|
1,672
|
0.2%
|
|
|
Consumer
loans
|
512
|
2,593
|
0.5%
|
|
442
|
1,767
|
0.7%
|
|
467
|
1,958
|
0.8%
|
|
525
|
2,435
|
1.0%
|
|
|
Commercial real
estate loans
|
28
|
8,368
|
0.4%
|
|
30
|
4,919
|
0.3%
|
|
31
|
2,762
|
0.2%
|
|
21
|
2,038
|
0.1%
|
|
|
Commercial
loans
|
8
|
401
|
0.1%
|
|
7
|
159
|
0.0%
|
|
13
|
970
|
0.2%
|
|
4
|
209
|
0.1%
|
|
Total loans
delinquent 60 days to 89 days
|
683
|
$
18,271
|
0.3%
|
|
588
|
$
14,750
|
0.2%
|
|
652
|
$
13,975
|
0.2%
|
|
699
|
$
13,324
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90
days or more: **
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
204
|
$ 17,209
|
0.6%
|
|
203
|
$ 16,125
|
0.6%
|
|
251
|
$ 20,319
|
0.8%
|
|
225
|
$ 17,696
|
0.7%
|
|
|
Home equity
loans
|
136
|
5,554
|
0.5%
|
|
104
|
4,616
|
0.4%
|
|
159
|
6,802
|
0.6%
|
|
139
|
6,606
|
0.6%
|
|
|
Consumer
loans
|
570
|
3,156
|
0.6%
|
|
440
|
2,199
|
0.9%
|
|
465
|
2,098
|
0.9%
|
|
539
|
2,450
|
1.0%
|
|
|
Commercial real
estate loans
|
95
|
14,898
|
0.6%
|
|
76
|
12,673
|
0.7%
|
|
110
|
13,552
|
0.8%
|
|
102
|
11,099
|
0.6%
|
|
|
Commercial
loans
|
23
|
2,319
|
0.6%
|
|
13
|
1,858
|
0.5%
|
|
25
|
3,162
|
0.8%
|
|
25
|
3,475
|
1.0%
|
|
Total loans
delinquent 90 days or more
|
1,028
|
$
43,136
|
0.6%
|
|
836
|
$
37,471
|
0.6%
|
|
1,010
|
$
45,933
|
0.8%
|
|
1,030
|
$
41,326
|
0.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
delinquent
|
3,225
|
$
85,987
|
1.2%
|
|
2,763
|
$
69,506
|
1.1%
|
|
3,088
|
$
82,382
|
1.4%
|
|
3,542
|
$
100,635
|
1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - Represents
delinquency, in dollars, divided by the respective total amount of
that type of loan outstanding.
|
|
|
|
|
|
|
|
|
|
** - Includes $6.3
million of acquired loans considered to be accruing. At September
30, 2015, we expect to fully collect the carrying value of our
acquired loans and have
|
|
determined that we
can reasonably estimate their future cash flows including those
loans that are 90 days or more delinquent. As a result, we do
not consider our
|
|
|
acquired loans that
are 90 days or more delinquent to be nonaccrual or impaired and
continue to recognize interest income on these loans including the
loans'
|
|
|
accretable
discount.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
|
Allowance for loan
losses
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Nine months
ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Allowance for loan
losses
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
$
59,057
|
|
71,442
|
|
67,518
|
|
71,348
|
|
|
Provision
|
|
3,167
|
|
3,466
|
|
5,117
|
|
19,236
|
|
|
Charge-offs
residential mortgage
|
|
(342)
|
|
(352)
|
|
(955)
|
|
(1,694)
|
|
|
Charge-offs home
equity
|
|
(443)
|
|
(325)
|
|
(1,327)
|
|
(1,290)
|
|
|
Charge-offs other
consumer
|
|
(2,014)
|
|
(1,446)
|
|
(5,713)
|
|
(4,612)
|
|
|
Charge-offs
commercial real estate
|
|
(558)
|
|
(2,199)
|
|
(5,110)
|
|
(5,709)
|
|
|
Charge-offs
commercial
|
|
(595)
|
|
(360)
|
|
(7,675)
|
|
(10,646)
|
|
|
Recoveries
|
|
2,275
|
|
1,424
|
|
8,692
|
|
5,017
|
|
|
Ending
balance
|
|
$
60,547
|
|
71,650
|
|
60,547
|
|
71,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans, annualized
|
|
0.10%
|
|
0.22%
|
|
0.26%
|
|
0.43%
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
Average balance
sheet
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
The following table
sets forth certain information relating to the Company's average
balance sheet and reflects the average yield on assets
and
|
average cost of
liabilities for the periods indicated. Such yields and costs
are derived by dividing income or expense by the average balance
of
|
assets or
liabilities, respectively, for the periods presented. Average
balances are calculated using daily averages.
|
|
|
|
|
|
|
|
|
|
Quarter ended
September 30,
|
|
2015
|
2014
|
|
|
|
Avg.
|
|
|
Avg.
|
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
|
Balance
|
Interest
|
Cost
(g)
|
Balance
|
Interest
|
Cost
(g)
|
Assets:
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
Loans
receivable (a) (b) (d)
|
$ 6,584,664
|
76,583
|
4.66%
|
$ 5,912,890
|
71,306
|
4.78%
|
Mortgage-backed securities (c)
|
498,757
|
2,230
|
1.79%
|
569,482
|
2,504
|
1.76%
|
Investment securities (c) (d)
|
482,666
|
2,754
|
2.28%
|
488,893
|
3,405
|
2.79%
|
FHLB
stock
|
39,552
|
451
|
4.52%
|
43,986
|
452
|
4.11%
|
Other
interest-earning deposits
|
162,041
|
99
|
0.24%
|
323,447
|
187
|
0.23%
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
7,767,680
|
82,117
|
4.24%
|
7,338,698
|
77,854
|
4.24%
|
|
|
|
|
|
|
|
Noninterest earning
assets (e)
|
846,439
|
|
|
537,065
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
8,614,119
|
|
|
$
7,875,763
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
Savings
deposits
|
$ 1,324,620
|
865
|
0.26%
|
$ 1,228,105
|
834
|
0.27%
|
Interest-bearing demand deposits
|
1,022,585
|
149
|
0.06%
|
899,231
|
152
|
0.07%
|
Money
market deposit accounts
|
1,217,122
|
825
|
0.27%
|
1,187,024
|
802
|
0.27%
|
Time
deposits
|
1,577,159
|
4,324
|
1.09%
|
1,553,867
|
4,517
|
1.15%
|
Borrowed
funds (f)
|
906,410
|
6,713
|
2.94%
|
876,034
|
6,700
|
3.03%
|
Junior
subordinated debentures
|
111,213
|
1,274
|
4.48%
|
103,094
|
1,182
|
4.49%
|
|
|
|
|
|
|
|
Total
interest-bearing liabilities
|
6,159,109
|
14,150
|
0.91%
|
5,847,355
|
14,187
|
0.96%
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
1,054,270
|
|
|
891,842
|
|
|
Noninterest bearing
liabilities
|
275,435
|
|
|
66,432
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
7,488,814
|
|
|
6,805,629
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
1,125,305
|
|
|
1,070,134
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
8,614,119
|
|
|
$
7,875,763
|
|
|
|
|
|
|
|
|
|
Net interest income/
Interest rate spread
|
|
67,967
|
3.33%
|
|
63,667
|
3.28%
|
|
|
|
|
|
|
|
Net interest-earning
assets/ Net interest margin
|
$ 1,608,571
|
|
3.50%
|
$ 1,491,343
|
|
3.47%
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to
|
|
|
|
|
|
|
interest-bearing liabilities
|
1.26X
|
|
|
1.26X
|
|
|
|
|
|
|
|
|
|
(a) Average gross
loans receivable includes loans held as available-for-sale and
loans placed on nonaccrual status, and adjustments for acquired
loans.
|
(b) Interest income
includes accretion/ amortization of deferred loan fees/ expenses,
which was not material.
|
(c) Average balances
do not include the effect of unrealized gains or losses on
securities held as available-for-sale.
|
(d) Interest income
on tax-free investment securities and tax-free loans are presented
on a fully taxable equivalent basis.
|
(e) Average balances
include the effect of unrealized gains or losses on securities held
as available-for-sale.
|
(f) Average balances
include FHLB borrowings and collateralized borrowings.
|
(g) Shown on a FTE
basis. GAAP basis yields for the periods indicated were: Loans -
4.63% and 4.75%, respectively, Investment securities -
1.84%
|
and 2.10%,
respectively, Interest-earning assets - 4.19% and 4.17%,
respectively. GAAP basis net interest rate spreads were 3.28%
and
|
3.21%, respectively,
and GAAP basis net interest margins were 3.45% and 3.40%,
respectively.
|
Northwest
Bancshares, Inc. and Subsidiaries
|
Average balance
sheet
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
The following table
sets forth certain information relating to the Company's average
balance sheet and reflects the average yield on assets
and
|
average cost of
liabilities for the periods indicated. Such yields and costs
are derived by dividing income or expense by the average balance
of
|
assets or
liabilities, respectively, for the periods presented. Average
balances are calculated using daily averages.
|
|
|
|
|
|
|
|
|
|
Nine months
ended September 30,
|
|
2015
|
2014
|
|
|
|
Avg.
|
|
|
Avg.
|
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
|
Balance
|
Interest
|
Cost
(g)
|
Balance
|
Interest
|
Cost
(g)
|
Assets:
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
Loans
receivable (a) (b) (d)
|
$ 6,228,049
|
219,210
|
4.71%
|
$ 5,856,940
|
212,437
|
4.85%
|
Mortgage-backed securities (c)
|
494,416
|
6,522
|
1.76%
|
597,042
|
7,963
|
1.78%
|
Investment securities (c) (d)
|
483,792
|
8,761
|
2.41%
|
501,120
|
10,504
|
2.79%
|
FHLB
stock (h)
|
37,112
|
1,289
|
4.64%
|
43,882
|
1,425
|
4.33%
|
Other
interest-earning deposits
|
217,232
|
418
|
0.25%
|
352,370
|
673
|
0.25%
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
7,460,601
|
236,200
|
4.23%
|
7,351,354
|
233,002
|
4.23%
|
|
|
|
|
|
|
|
Noninterest earning
assets (e)
|
664,830
|
|
|
563,902
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
8,125,431
|
|
|
$
7,915,256
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
Savings
deposits
|
$ 1,273,724
|
2,516
|
0.26%
|
$ 1,225,411
|
2,459
|
0.27%
|
Interest-bearing demand deposits
|
1,025,896
|
411
|
0.06%
|
882,465
|
440
|
0.07%
|
Money
market deposit accounts
|
1,176,446
|
2,349
|
0.27%
|
1,181,056
|
2,376
|
0.27%
|
Time
deposits
|
1,395,165
|
12,344
|
1.11%
|
1,598,870
|
13,941
|
1.17%
|
Borrowed
funds (f)
|
932,123
|
20,617
|
2.96%
|
876,606
|
19,880
|
3.03%
|
Junior
subordinated debentures
|
105,800
|
3,604
|
4.49%
|
103,094
|
3,509
|
4.49%
|
|
|
|
|
|
|
|
Total
interest-bearing liabilities
|
5,909,154
|
41,841
|
0.95%
|
5,867,502
|
42,605
|
0.97%
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
975,904
|
|
|
853,294
|
|
|
Noninterest bearing
liabilities
|
156,247
|
|
|
98,877
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
7,041,305
|
|
|
6,819,673
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
1,084,126
|
|
|
1,095,583
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
8,125,431
|
|
|
$
7,915,256
|
|
|
|
|
|
|
|
|
|
Net interest income/
Interest rate spread
|
|
194,359
|
3.28%
|
|
190,397
|
3.26%
|
|
|
|
|
|
|
|
Net interest-earning
assets/ Net interest margin
|
$ 1,551,447
|
|
3.47%
|
$ 1,483,852
|
|
3.45%
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to
|
|
|
|
|
|
|
interest-bearing liabilities
|
1.26X
|
|
|
1.25X
|
|
|
|
|
|
|
|
|
|
(a) Average gross
loans receivable includes loans held as available-for-sale and
loans placed on nonaccrual status, and adjustments for acquired
loans.
|
(b) Interest income
includes accretion/ amortization of deferred loan fees/ expenses,
which was not material.
|
(c) Average balances
do not include the effect of unrealized gains or losses on
securities held as available-for-sale.
|
(d) Interest income
on tax-free investment securities and tax-free loans are presented
on a fully taxable equivalent basis.
|
(e) Average balances
include the effect of unrealized gains or losses on securities held
as available-for-sale.
|
(f) Average balances
include FHLB borrowings and collateralized borrowings.
|
(g) Shown on a FTE
basis. GAAP basis yields for the periods indicated were: Loans -
4.68% and 4.81%, respectively, Investment securities -
1.90%
|
and 2.11%,
respectively, Interest-earning assets - 4.17% and 4.15%,
respectively. GAAP basis net interest rate spreads were 3.22%
and
|
3.18%, respectively,
and GAAP basis net interest margins were 3.41% and 3.38%,
respectively.
|
(h) Excludes a $1.0
million special dividend paid in February 2015 from the average
yield calculation.
|
Northwest
Bancshares, Inc. and Subsidiaries
|
Average balance
sheet
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
The following table
sets forth certain information relating to the Company's average
balance sheet and reflects the average yield on assets
and
|
average cost of
liabilities for the periods indicated. Such yields and costs
are derived by dividing income or expense by the average balance
of
|
assets or
liabilities, respectively, for the periods presented. Average
balances are calculated using daily averages.
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
Quarter
ended
|
|
September 30,
2015
|
June 30,
2015
|
|
|
|
Avg.
|
|
|
Avg.
|
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
|
Balance
|
Interest
|
Cost
(g)
|
Balance
|
Interest
|
Cost
(g)
|
Assets:
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
Loans
receivable (a) (b) (d)
|
$ 6,584,664
|
76,583
|
4.66%
|
$ 6,073,911
|
71,445
|
4.72%
|
Mortgage-backed securities (c)
|
498,757
|
2,230
|
1.79%
|
477,800
|
2,058
|
1.72%
|
Investment securities (c) (d)
|
482,666
|
2,754
|
2.28%
|
482,670
|
2,887
|
2.39%
|
FHLB
stock
|
39,552
|
451
|
4.52%
|
35,608
|
475
|
5.35%
|
Other
interest-earning deposits
|
162,041
|
99
|
0.24%
|
272,691
|
180
|
0.26%
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
7,767,680
|
82,117
|
4.24%
|
7,342,680
|
77,045
|
4.21%
|
|
|
|
|
|
|
|
Noninterest earning
assets (e)
|
846,439
|
|
|
529,528
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
8,614,119
|
|
|
$
7,872,208
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
Savings
deposits
|
$ 1,324,620
|
865
|
0.26%
|
$ 1,263,785
|
838
|
0.27%
|
Interest-bearing demand deposits
|
1,022,585
|
149
|
0.06%
|
920,071
|
131
|
0.06%
|
Money
market deposit accounts
|
1,217,122
|
825
|
0.27%
|
1,147,017
|
759
|
0.27%
|
Time
deposits
|
1,577,159
|
4,324
|
1.09%
|
1,409,740
|
3,963
|
1.13%
|
Borrowed
funds (f)
|
906,410
|
6,713
|
2.94%
|
929,744
|
6,929
|
2.99%
|
Junior
subordinated debentures
|
111,213
|
1,274
|
4.48%
|
103,094
|
1,172
|
4.50%
|
|
|
|
|
|
|
|
Total
interest-bearing liabilities
|
6,159,109
|
14,150
|
0.91%
|
5,773,451
|
13,792
|
0.96%
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
1,054,270
|
|
|
957,912
|
|
|
Noninterest bearing
liabilities
|
275,435
|
|
|
77,075
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
7,488,814
|
|
|
6,808,438
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
1,125,305
|
|
|
1,063,770
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
8,614,119
|
|
|
$
7,872,208
|
|
|
|
|
|
|
|
|
|
Net interest income/
Interest rate spread
|
|
67,967
|
3.33%
|
|
63,253
|
3.25%
|
|
|
|
|
|
|
|
Net interest-earning
assets/ Net interest margin
|
$ 1,608,571
|
|
3.50%
|
$ 1,569,229
|
|
3.45%
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to
|
|
|
|
|
|
|
interest-bearing liabilities
|
1.26X
|
|
|
1.27X
|
|
|
|
|
|
|
|
|
|
(a) Average gross
loans receivable includes loans held as available-for-sale and
loans placed on nonaccrual status, and adjustments for acquired
loans.
|
(b) Interest income
includes accretion/ amortization of deferred loan fees/ expenses,
which was not material.
|
(c) Average balances
do not include the effect of unrealized gains or losses on
securities held as available-for-sale.
|
(d) Interest income
on tax-free investment securities and tax-free loans are presented
on a fully taxable equivalent basis.
|
(e) Average balances
include the effect of unrealized gains or losses on securities held
as available-for-sale.
|
(f) Average balances
include FHLB borrowings and collateralized borrowings.
|
(g) Shown on a FTE
basis. GAAP basis yields for the periods indicated were: Loans -
4.63% and 4.69%, respectively, Investment securities
-1.84%
|
and 1.88%,
respectively, Interest-earning assets - 4.19% and 4.15%,
respectively. GAAP basis net interest rate spreads were 3.28%
and
|
3.19%, respectively,
and GAAP basis net interest margins were 3.45% and 3.39%,
respectively.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-third-quarter-2015-earnings-and-quarterly-dividend-300166005.html
SOURCE Northwest Bancshares, Inc.