WARREN, Penn., Jan. 25, 2016 /PRNewswire/ -- Northwest
Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the
quarter ended December 31, 2015 of $16.2 million, or $0.16 per diluted share. This represents a
decrease of $1.1 million, or 6.6%,
compared to the same quarter last year when net income was
$17.3 million, or $0.19 per diluted share. The annualized
returns on average shareholders' equity and average assets for the
quarter ended December 31, 2015 were 5.83% and 0.77% compared
to 6.42% and 0.88% for the same quarter last year. Earnings for the
current quarter include acquisition expenses of $1.3 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 $17.1 million, or $0.17 per diluted share. The non-GAAP annualized
returns on average shareholders' equity and average assets for the
quarter ended December 31, 2015 were
6.16% and 0.82%.
The Company also announced that its Board of
Directors declared a quarterly cash dividend of $0.15 per share payable on February 18,
2016, to shareholders of record as of February 4, 2016.
This represents a 7.1% increase over the prior quarter and is the
85th consecutive quarter in which the Company has paid a cash
dividend.
In making this announcement, William J. Wagner, President and CEO, noted,
"2015 was an exciting year for Northwest as we completed the
largest acquisition in the history of our company and with that,
established a solid foundation for future growth in northeastern
Ohio. Our fourth quarter earnings
demonstrate the significant impact that this franchise will have on
Northwest's core earnings. We also were pleased to continue to
realize solid internal growth in our areas of primary focus, with
loans growing by 5% and checking balances increasing by 10%.
Looking ahead, we will continue to pursue strategies to strengthen
our balance sheet by diversifying our loan and deposit mixes while
also pursuing opportunities to enhance efficiency in all areas
of operations."
Net interest income increased by $8.6 million, or 13.7%, to $71.2 million for the quarter ended
December 31, 2015, from $62.6
million for the quarter ended December 31, 2014. This
increase was due primarily to an increase in interest income on
loans receivable of $9.7 million, or
13.6%, as a result of internal loan growth of $304.1 million over the prior year, while the LNB
acquisition provided net loans of $928.1
million. Partially offsetting this increase was a decrease
in interest received on tax-free investment securities of
$631,000 and an increase in interest
expense of $504,000 due primarily to
the addition of $1.034 billion in
deposits from the LNB acquisition.
The provision for loan losses increased by
$3.5 million to $4.6 million for the quarter ended
December 31, 2015, from $1.1
million for the quarter ended December 31, 2014.
This increase is due primarily to the prior year provision being
one of the lowest quarterly provisions over the past seven years.
Asset quality improved compared to last year as classified loans
decreased $24.4 million, or 11.2%,
and total nonaccrual loans decreased $8.1
million, or 10.2%.
Noninterest income increased by $2.3 million, or 13.5%, to $19.5 million for the quarter ended
December 31, 2015, from $17.2
million for the quarter ended December 31, 2014.
This improvement is due primarily to an increase in service charges
and fees of $1.2 million, or 13.6%.
This increase was attributable to additional fees earned from the
continued growth in checking accounts, as well as from the
additional loan and deposit accounts provided by the LNB
acquisition. Additionally, other operating income increased by
$892,000, or 110.8%, due primarily to
recoveries on loans acquired from LNB.
Noninterest expense increased by $6.0 million, or 10.9%, to $61.2 million for the quarter ended
December 31, 2015, from $55.2
million for the quarter ended December 31, 2014. This
increase was due primarily to a $1.3
million, or 19.9%, increase in processing expenses, due
primarily to technology upgrades and the additional costs
associated with the 21 offices acquired during the third quarter.
Acquisition expense and premises and occupancy costs increased by
$953,000 and $887,000, respectively, as a result of LNB merger
and the costs associated with the acquired properties.
Income tax expense increased by $2.5 million, or 40.3%, to $8.7 million for the quarter ended December 31, 2015 from $6.2 million for the quarter ended December 31, 2014. This increase relates to the
increase in net income before tax and the uncertainty of
Pennsylvania's Education
Improvement Tax credit program. Due to this uncertainty, the
Company did not participate in the program during the current
year.
Net income for the year ended December 31,
2015 of $60.5 million represents a
decrease of $1.5 million, or 2.3%,
compared to net income of $62.0
million for the year ended December 31, 2014.
This decrease in annual earnings was due to $9.8 million of acquisition expenses, a
$3.9 million, or 3.3%, increase in
compensation and employee benefits as a result of the LNB
acquisition, a $4.1 million, or
15.4%, increase in processing expense due primarily to recent
technology upgrades, and a $6.2
million increase in income tax expense due primarily to a
decrease in interest income from tax-free municipal bonds, as well
as lower state tax credits. These factors were partially
offset by a $14.4 million, or 5.8%,
increase in net interest income and a $10.6
million, or 52.2%, decrease in the provision for loan
losses. Diluted earnings per share for the year ended
December 31, 2015 decreased to $0.64 per share from $0.67 per share last year. The annualized
returns on average shareholders' equity and average assets were
5.49% and 0.73%, respectively, for the current year compared to
5.69% and 0.79%, respectively, in the prior year. Excluding the
after-tax impact of $9.8 million of
acquisition expenses, non-GAAP net operating income for the year
was $67.0 million, or $0.71 per diluted share. The non-GAAP annualized
returns on average shareholders' equity and average assets for the
year ended December 31, 2015 were
6.08% and 0.80%.
The Company also announced plans to optimize its
office network. In recent years, the Company has invested heavily
in alternative delivery channels such as online and mobile banking,
depository ATMs, and automated telephone banking which enables
customers to transact business outside of the branch and beyond
normal business hours. As a result, the number of transactions
conducted in offices has significantly decreased over the past
several years and has created an opportunity to improve operating
efficiency. Based on these changes in customer preferences, the
Company expects by mid-year 2016 to consolidate 24 of its offices
into nearby locations and convert two full-service offices into
drive-up only facilities. Expenses associated with these changes
are expected to be approximately $5.0
million, which will be incurred during the first half of
2016, and the annual reduction in pre-tax operating expenses
beginning in 2017 is expected to be between $5.0 million and $6.0 million.
Headquartered in Warren, Pennsylvania, Northwest
Bancshares, Inc. is the holding company of Northwest
Bank. Founded in 1896, Northwest 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 176 full-service community
banking offices in Pennsylvania,
New York, Ohio and Maryland, five free standing drive-up
facilities in Pennsylvania, 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 Savings Bank can be accessed on-line at
www.northwestsavingsbank.com.
Forward-Looking Statements - This release may
contain forward-looking statements with respect to the financial
condition and results of operations of Northwest
Bancshares, Inc. including, without limitations, statements
relating to the earnings outlook of the Company. These
forward-looking statements involve certain risks and uncertainties.
Factors that may cause actual results to differ materially from
those contemplated by such forward-looking statements, include
among others, the following possibilities: (1) changes in the
interest rate environment; (2) competitive pressure among
financial services companies; (3) general economic conditions
including an increase in non-performing loans; (4) changes in
legislation or regulatory requirements; (5) difficulties in
continuing to improve operating efficiencies; (6) difficulties
in the integration of acquired businesses; and (7) increased
risk associated with commercial real-estate and business
loans. Management has no obligation to revise or update these
forward-looking statements to reflect events or circumstances that
arise after the date of this release.
Northwest
Bancshares, Inc. and Subsidiaries
|
Consolidated
Statements of Financial Condition
|
(Dollars in
thousands, except per share amounts)
|
|
|
|
December 31,
|
|
December 31,
|
Assets
|
|
2015
|
|
2014
|
Cash and cash
equivalents
|
|
$
|
92,263
|
|
|
87,401
|
|
Interest-earning
deposits in other financial institutions
|
|
74,510
|
|
|
152,671
|
|
Federal funds sold
and other short-term investments
|
|
635
|
|
|
634
|
|
Marketable securities
available-for-sale (amortized cost of $868,956 and
$906,702)
|
|
874,405
|
|
|
912,371
|
|
Marketable securities
held-to-maturity (fair value of $32,552 and $106,292)
|
|
31,689
|
|
|
103,695
|
|
Total cash,
interest-earning deposits and marketable securities
|
|
1,073,502
|
|
|
1,256,772
|
|
|
|
|
|
|
Residential mortgage
loans
|
|
2,750,564
|
|
|
2,521,456
|
|
Home equity
loans
|
|
1,187,106
|
|
|
1,066,131
|
|
Other consumer
loans
|
|
510,617
|
|
|
242,744
|
|
Commercial real
estate loans
|
|
2,351,434
|
|
|
1,801,184
|
|
Commercial
loans
|
|
422,400
|
|
|
358,376
|
|
Total loans
receivable
|
|
7,222,121
|
|
|
5,989,891
|
|
Allowance for loan
losses
|
|
(62,672)
|
|
|
(67,518)
|
|
Loans receivable,
net
|
|
7,159,449
|
|
|
5,922,373
|
|
|
|
|
|
|
Federal Home Loan
Bank stock, at cost
|
|
40,903
|
|
|
33,293
|
|
Accrued interest
receivable
|
|
21,072
|
|
|
18,623
|
|
Real estate owned,
net
|
|
8,725
|
|
|
16,759
|
|
Premises and
Equipment, net
|
|
154,351
|
|
|
143,909
|
|
Bank owned life
insurance
|
|
168,509
|
|
|
144,362
|
|
Goodwill
|
|
261,736
|
|
|
175,323
|
|
Other intangible
assets
|
|
8,982
|
|
|
3,033
|
|
Other
assets
|
|
54,670
|
|
|
60,586
|
|
Total
assets
|
|
$
|
8,951,899
|
|
|
7,775,033
|
|
|
|
|
|
|
Liabilities and Shareholders' equity
|
|
|
|
|
Liabilities
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
$
|
1,177,256
|
|
|
$
|
891,248
|
|
Interest-bearing
demand deposits
|
|
1,080,086
|
|
|
874,623
|
|
Money market deposit
accounts
|
|
1,274,504
|
|
|
1,179,070
|
|
Savings
deposits
|
|
1,386,017
|
|
|
1,209,287
|
|
Time
deposits
|
|
1,694,718
|
|
|
1,478,314
|
|
Total
deposits
|
|
6,612,581
|
|
|
5,632,542
|
|
Borrowed
funds
|
|
975,007
|
|
|
888,109
|
|
Advances by borrowers
for taxes and insurance
|
|
33,735
|
|
|
30,507
|
|
Accrued interest
payable
|
|
1,993
|
|
|
936
|
|
Other
liabilities
|
|
54,207
|
|
|
57,198
|
|
Junior subordinated
debentures
|
|
111,213
|
|
|
103,094
|
|
Total
liabilities
|
|
7,788,736
|
|
|
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, 101,871,737 shares and
94,721,453 shares issued and outstanding, respectively
|
|
1,019
|
|
|
947
|
|
Paid-in-capital
|
|
717,603
|
|
|
626,134
|
|
Retained
earnings
|
|
489,292
|
|
|
481,577
|
|
Unallocated common
stock of Employee Stock Ownership Plan
|
|
(20,216)
|
|
|
(21,641)
|
|
Accumulated other
comprehensive loss
|
|
(24,535)
|
|
|
(24,370)
|
|
Total shareholders'
equity
|
|
1,163,163
|
|
|
1,062,647
|
|
Total liabilities and
shareholders' equity
|
|
$
|
8,951,899
|
|
|
7,775,033
|
|
|
|
|
|
|
Equity to
assets
|
|
12.99
|
%
|
|
13.67
|
%
|
Tangible common
equity to assets
|
|
10.28
|
%
|
|
11.64
|
%
|
Book value per
share
|
|
$
|
11.42
|
|
|
11.22
|
|
Tangible book value
per share
|
|
$
|
8.76
|
|
|
9.34
|
|
Closing market price
per share
|
|
$
|
13.39
|
|
|
12.53
|
|
Full time equivalent
employees
|
|
2,186
|
|
|
2,042
|
|
Number of banking
offices
|
|
181
|
|
|
162
|
|
|
|
|
|
|
|
|
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
Consolidated
Statements of Income
|
(Dollars in
thousands, except per share amounts)
|
|
|
Quarter ended
|
|
December 31,
|
|
September 30,
|
|
2015
|
|
2014
|
|
2015
|
Interest
income:
|
|
|
|
|
|
Loans
receivable
|
$
|
80,882
|
|
|
$
|
71,182
|
|
|
76,087
|
|
Mortgage-backed
securities
|
2,301
|
|
|
2,357
|
|
|
2,230
|
|
Taxable investment
securities
|
1,108
|
|
|
1,032
|
|
|
1,238
|
|
Tax-free investment
securities
|
836
|
|
|
1,467
|
|
|
986
|
|
FHLB
dividends
|
499
|
|
|
383
|
|
|
451
|
|
Interest-earning
deposits
|
13
|
|
|
164
|
|
|
99
|
|
Total interest
income
|
85,639
|
|
|
76,585
|
|
|
81,091
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
Deposits
|
6,435
|
|
|
6,106
|
|
|
6,163
|
|
Borrowed
funds
|
8,051
|
|
|
7,876
|
|
|
7,987
|
|
Total interest
expense
|
14,486
|
|
|
13,982
|
|
|
14,150
|
|
|
|
|
|
|
|
Net interest
income
|
71,153
|
|
|
62,603
|
|
|
66,941
|
|
Provision for loan
losses
|
4,595
|
|
|
1,078
|
|
|
3,167
|
|
Net interest income
after provision for loan losses
|
66,558
|
|
|
61,525
|
|
|
63,774
|
|
|
|
|
|
|
|
Gain on sale of
investments
|
116
|
|
|
381
|
|
|
260
|
|
Service charges and
fees
|
10,530
|
|
|
9,268
|
|
|
9,945
|
|
Trust and other
financial services income
|
3,410
|
|
|
3,291
|
|
|
3,062
|
|
Insurance commission
income
|
2,490
|
|
|
2,181
|
|
|
2,398
|
|
Loss on real estate
owned, net
|
(156)
|
|
|
(30)
|
|
|
(246)
|
|
Income from bank
owned life insurance
|
1,251
|
|
|
1,057
|
|
|
1,166
|
|
Mortgage banking
income
|
208
|
|
|
269
|
|
|
267
|
|
Other operating
income
|
1,697
|
|
|
805
|
|
|
1,288
|
|
Total noninterest
income
|
19,546
|
|
|
17,222
|
|
|
18,140
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
Compensation and
employee benefits
|
32,003
|
|
|
31,405
|
|
|
31,000
|
|
Premises and
occupancy costs
|
6,403
|
|
|
5,516
|
|
|
6,072
|
|
Office
operations
|
4,504
|
|
|
3,677
|
|
|
3,892
|
|
Processing
expenses
|
8,057
|
|
|
6,720
|
|
|
8,126
|
|
Marketing
expenses
|
1,642
|
|
|
1,434
|
|
|
1,691
|
|
Federal deposit
insurance premiums
|
1,299
|
|
|
1,316
|
|
|
1,177
|
|
Professional
services
|
1,933
|
|
|
1,970
|
|
|
1,529
|
|
Amortization of
intangible assets
|
729
|
|
|
331
|
|
|
422
|
|
Real estate owned
expense
|
393
|
|
|
406
|
|
|
471
|
|
Acquisition
expense
|
1,347
|
|
|
394
|
|
|
7,590
|
|
Other
expense
|
2,917
|
|
|
2,043
|
|
|
1,834
|
|
Total noninterest
expense
|
61,227
|
|
|
55,212
|
|
|
63,804
|
|
|
|
|
|
|
|
Income before income
taxes
|
24,877
|
|
|
23,535
|
|
|
18,110
|
|
Income tax
expense
|
8,684
|
|
|
6,190
|
|
|
5,238
|
|
|
|
|
|
|
|
Net income
|
$
|
16,193
|
|
|
$
|
17,345
|
|
|
12,872
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.16
|
|
|
$
|
0.19
|
|
|
0.14
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.16
|
|
|
$
|
0.19
|
|
|
0.13
|
|
|
|
|
|
|
|
Annualized return on
average equity
|
5.83
|
%
|
|
6.42
|
%
|
|
4.54
|
%
|
Annualized return on
average assets
|
0.77
|
%
|
|
0.88
|
%
|
|
0.59
|
%
|
|
|
|
|
|
|
Basic common shares
outstanding
|
98,741,393
|
|
|
91,741,487
|
|
|
95,256,807
|
|
Diluted common shares
outstanding
|
99,500,056
|
|
|
92,103,069
|
|
|
95,825,798
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
Consolidated
Statements of Income
|
(Dollars in
thousands, except per share amounts)
|
|
|
Year
ended
December 31,
|
|
2015
|
|
2014
|
Interest
income:
|
|
|
|
Loans
receivable
|
$
|
298,665
|
|
|
282,050
|
|
Mortgage-backed
securities
|
8,823
|
|
|
10,320
|
|
Taxable investment
securities
|
4,520
|
|
|
4,130
|
|
Tax-free investment
securities
|
4,313
|
|
|
6,281
|
|
FHLB
dividends
|
2,828
|
|
|
1,809
|
|
Interest-earning
deposits
|
431
|
|
|
837
|
|
Total interest
income
|
319,580
|
|
|
305,427
|
|
|
|
|
|
Interest
expense:
|
|
|
|
Deposits
|
24,055
|
|
|
25,322
|
|
Borrowed
funds
|
32,272
|
|
|
31,265
|
|
Total interest
expense
|
56,327
|
|
|
56,587
|
|
|
|
|
|
Net interest
income
|
263,253
|
|
|
248,840
|
|
Provision for loan
losses
|
9,712
|
|
|
20,314
|
|
Net interest income
after provision for loan losses
|
253,541
|
|
|
228,526
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
Gain on sale of
investments
|
1,037
|
|
|
4,930
|
|
Service charges and
fees
|
38,362
|
|
|
36,383
|
|
Trust and other
financial services income
|
12,342
|
|
|
12,369
|
|
Insurance commission
income
|
9,526
|
|
|
8,760
|
|
Loss on real estate
owned, net
|
(1,989)
|
|
|
(967)
|
|
Income from bank
owned life insurance
|
4,338
|
|
|
4,191
|
|
Mortgage banking
income
|
933
|
|
|
1,022
|
|
Other operating
income
|
4,287
|
|
|
4,078
|
|
Total noninterest
income
|
68,836
|
|
|
70,766
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
Compensation and
employee benefits
|
119,818
|
|
|
115,967
|
|
Premises and
occupancy costs
|
24,641
|
|
|
23,455
|
|
Office
operations
|
15,584
|
|
|
14,721
|
|
Processing
expenses
|
30,780
|
|
|
26,671
|
|
Marketing
expenses
|
8,499
|
|
|
8,213
|
|
Federal deposit
insurance premiums
|
5,109
|
|
|
5,193
|
|
Professional
services
|
6,906
|
|
|
7,661
|
|
Amortization of
intangible assets
|
1,688
|
|
|
1,323
|
|
Real estate owned
expense
|
2,070
|
|
|
2,140
|
|
Acquisition
expense
|
9,751
|
|
|
394
|
|
Other
expense
|
9,031
|
|
|
9,797
|
|
Total noninterest
expense
|
233,877
|
|
|
215,535
|
|
|
|
|
|
Income before income
taxes
|
88,500
|
|
|
83,757
|
|
Income tax
expense
|
27,960
|
|
|
21,795
|
|
|
|
|
|
Net income
|
$
|
60,540
|
|
|
61,962
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.64
|
|
|
0.68
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.64
|
|
|
0.67
|
|
|
|
|
|
Annualized return on
average equity
|
5.49
|
%
|
|
5.69
|
%
|
Annualized return on
average assets
|
0.73
|
%
|
|
0.79
|
%
|
|
|
|
|
Basic common shares
outstanding
|
94,314,420
|
|
|
91,535,298
|
|
Diluted common shares
outstanding
|
94,829,789
|
|
|
92,274,997
|
|
Northwest
Bancshares, Inc. and Subsidiaries
|
Reconciliation of
Non-GAAP to GAAP Net Income *
|
(Dollars in
thousands, except per share amounts)
|
|
|
Quarter
ended
|
|
Year ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Operating results
(non-GAAP):
|
|
|
|
|
|
|
|
Net
interest income
|
$
|
71,153
|
|
|
62,603
|
|
|
263,253
|
|
|
248,840
|
|
Provision for loan losses
|
4,595
|
|
|
1,078
|
|
|
9,712
|
|
|
20,314
|
|
Noninterest income
|
19,546
|
|
|
17,222
|
|
|
68,836
|
|
|
70,766
|
|
Noninterest expense
|
59,880
|
|
|
55,212
|
|
|
224,126
|
|
|
215,535
|
|
Income
taxes
|
9,111
|
|
|
6,190
|
|
|
31,239
|
|
|
21,795
|
|
Net operating income (non-GAAP)
|
$
|
17,113
|
|
|
17,345
|
|
|
67,012
|
|
|
61,962
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
(non-GAAP)
|
$
|
0.17
|
|
|
0.19
|
|
|
0.71
|
|
|
0.67
|
|
|
|
|
|
|
|
|
|
Reconciliation of net
operating income to net income:
|
$
|
17,113
|
|
|
17,345
|
|
|
67,012
|
|
|
61,962
|
|
Net operating income (non-GAAP)
|
|
|
|
|
|
|
|
Non-operating
expenses, net of tax:
|
|
|
|
|
|
|
|
Acquisition expenses, net of tax benefit
|
(920)
|
|
|
—
|
|
|
(6,472)
|
|
|
—
|
|
Net income (GAAP)
|
$
|
16,193
|
|
|
17,345
|
|
|
60,540
|
|
|
61,962
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
(GAAP)
|
$
|
0.16
|
|
|
0.19
|
|
|
0.64
|
|
|
0.67
|
|
|
* - 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)
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2012
|
Nonaccrual loans
current:
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
1,393
|
|
|
1,169
|
|
|
1,361
|
|
|
797
|
|
Home equity
loans
|
1,108
|
|
|
1,527
|
|
|
835
|
|
|
635
|
|
Other consumer
loans
|
140
|
|
|
88
|
|
|
98
|
|
|
44
|
|
Commercial real
estate loans
|
14,018
|
|
|
23,703
|
|
|
17,866
|
|
|
24,960
|
|
Commercial
loans
|
4,604
|
|
|
5,917
|
|
|
13,357
|
|
|
5,424
|
|
Total nonaccrual
loans current
|
$
|
21,263
|
|
|
32,404
|
|
|
33,517
|
|
|
31,860
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
430
|
|
|
1,545
|
|
|
427
|
|
|
—
|
|
Home equity
loans
|
375
|
|
|
712
|
|
|
404
|
|
|
—
|
|
Other consumer
loans
|
97
|
|
|
48
|
|
|
15
|
|
|
—
|
|
Commercial real
estate loans
|
2,192
|
|
|
1,128
|
|
|
3,468
|
|
|
5,549
|
|
Commercial
loans
|
322
|
|
|
9
|
|
|
7,650
|
|
|
2,002
|
|
Total nonaccrual
loans delinquent 30 days to 59 days
|
$
|
3,416
|
|
|
3,442
|
|
|
11,964
|
|
|
7,551
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
2,139
|
|
|
784
|
|
|
864
|
|
|
—
|
|
Home equity
loans
|
389
|
|
|
724
|
|
|
280
|
|
|
—
|
|
Other consumer
loans
|
315
|
|
|
234
|
|
|
87
|
|
|
—
|
|
Commercial real
estate loans
|
762
|
|
|
763
|
|
|
2,036
|
|
|
2,802
|
|
Commercial
loans
|
110
|
|
|
131
|
|
|
716
|
|
|
9,652
|
|
Total nonaccrual
loans delinquent 60 days to 89 days
|
$
|
3,715
|
|
|
2,636
|
|
|
3,983
|
|
|
12,454
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
delinquent 90 days or more:
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
15,810
|
|
|
17,696
|
|
|
24,625
|
|
|
24,286
|
|
Home equity
loans
|
5,650
|
|
|
6,606
|
|
|
8,344
|
|
|
8,479
|
|
Other consumer
loans
|
2,900
|
|
|
2,450
|
|
|
2,057
|
|
|
1,936
|
|
Commercial real
estate loans
|
16,449
|
|
|
10,215
|
|
|
18,433
|
|
|
24,550
|
|
Commercial
loans
|
2,459
|
|
|
4,359
|
|
|
4,298
|
|
|
9,096
|
|
Total nonaccrual
loans delinquent 90 days or more
|
$
|
43,268
|
|
|
41,326
|
|
|
57,757
|
|
|
68,347
|
|
|
|
|
|
|
|
|
|
Total nonaccrual
loans
|
$
|
71,662
|
|
|
79,808
|
|
|
107,221
|
|
|
120,212
|
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2012
|
Nonaccrual
loans
|
$
|
71,662
|
|
|
79,808
|
|
|
107,221
|
|
|
120,212
|
|
Loans 90 days past
maturity and still accruing
|
1,334
|
|
|
235
|
|
|
690
|
|
|
1,698
|
|
Nonperforming
loans
|
72,996
|
|
|
80,043
|
|
|
107,911
|
|
|
121,910
|
|
Real estate owned,
net
|
8,725
|
|
|
16,759
|
|
|
18,203
|
|
|
26,165
|
|
Nonperforming
assets
|
$
|
81,721
|
|
|
96,802
|
|
|
126,114
|
|
|
148,075
|
|
|
|
|
|
|
|
|
|
Nonaccrual troubled
debt restructuring *
|
$
|
21,118
|
|
|
24,459
|
|
|
28,889
|
|
|
41,166
|
|
Accruing troubled
debt restructuring
|
29,997
|
|
|
37,329
|
|
|
50,277
|
|
|
48,278
|
|
Total troubled debt
restructuring
|
$
|
51,115
|
|
|
61,788
|
|
|
79,166
|
|
|
89,444
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
to total loans
|
1.01
|
%
|
|
1.34
|
%
|
|
1.86
|
%
|
|
2.14
|
%
|
|
|
|
|
|
|
|
|
Nonperforming assets
to total assets
|
0.91
|
%
|
|
1.25
|
%
|
|
1.60
|
%
|
|
1.86
|
%
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to total loans
|
0.87
|
%
|
|
1.13
|
%
|
|
1.23
|
%
|
|
1.28
|
%
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to nonperforming loans
|
85.86
|
%
|
|
84.35
|
%
|
|
66.12
|
%
|
|
60.06
|
%
|
|
* Amounts included in
nonperforming loans above.
|
Northwest
Bancshares, Inc. and Subsidiaries
|
Loans by credit
quality indicators as of December 31, 2015
|
(Dollars in
thousands)
|
|
|
Pass
|
|
Special
mention
*
|
|
Substandard
**
|
|
Doubtful
|
|
Loss
|
|
Recorded
investment
in loans
receivable
|
Personal
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
$
|
2,735,164
|
|
|
—
|
|
|
14,060
|
|
|
—
|
|
|
1,340
|
|
|
2,750,564
|
|
Home equity
loans
|
1,178,735
|
|
|
—
|
|
|
8,371
|
|
|
—
|
|
|
—
|
|
|
1,187,106
|
|
Other consumer
loans
|
508,074
|
|
|
—
|
|
|
2,543
|
|
|
—
|
|
|
—
|
|
|
510,617
|
|
Total Personal
Banking
|
4,421,973
|
|
|
—
|
|
|
24,974
|
|
|
—
|
|
|
1,340
|
|
|
4,448,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate loans
|
2,170,951
|
|
|
53,390
|
|
|
126,978
|
|
|
115
|
|
|
—
|
|
|
2,351,434
|
|
Commercial
loans
|
359,403
|
|
|
23,730
|
|
|
38,157
|
|
|
1,110
|
|
|
—
|
|
|
422,400
|
|
Total Business
Banking
|
2,530,354
|
|
|
77,120
|
|
|
165,135
|
|
|
1,225
|
|
|
—
|
|
|
2,773,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,952,327
|
|
|
77,120
|
|
|
190,109
|
|
|
1,225
|
|
|
1,340
|
|
|
7,222,121
|
|
|
* - Includes $7.6
million of acquired loans.
|
** - Includes $18.6
million of acquired loans.
|
Northwest
Bancshares, Inc. and Subsidiaries
|
Loans by credit
quality indicators as of December 31, 2014
|
(Dollars in
thousands)
|
|
|
Pass
|
|
Special
mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Recorded
investment
in loans
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
|
1,570,649
|
|
|
36,908
|
|
|
145,502
|
|
|
505
|
|
|
—
|
|
|
1,753,564
|
|
Commercial
loans
|
333,854
|
|
|
23,690
|
|
|
46,280
|
|
|
2,172
|
|
|
—
|
|
|
405,996
|
|
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)
|
|
|
December 31,
2015
|
|
*
|
|
December 31,
2014
|
|
*
|
|
December 31,
2013
|
|
*
|
|
December 31,
2012
|
|
*
|
Loans delinquent
30
days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
loans
|
349
|
|
|
$
|
25,943
|
|
|
0.9
|
%
|
|
377
|
|
|
$
|
27,443
|
|
|
1.1
|
%
|
|
374
|
|
|
$
|
27,486
|
|
|
1.1
|
%
|
|
430
|
|
|
$
|
32,921
|
|
|
1.4
|
%
|
Home equity
loans
|
173
|
|
|
5,806
|
|
|
0.5
|
%
|
|
161
|
|
|
5,752
|
|
|
0.5
|
%
|
|
213
|
|
|
6,946
|
|
|
0.6
|
%
|
|
224
|
|
|
6,534
|
|
|
0.6
|
%
|
Consumer
loans
|
1,234
|
|
|
7,101
|
|
|
1.4
|
%
|
|
1,193
|
|
|
5,572
|
|
|
2.3
|
%
|
|
1,010
|
|
|
4,515
|
|
|
2.0
|
%
|
|
1,122
|
|
|
5,456
|
|
|
2.4
|
%
|
Commercial real
estate loans
|
48
|
|
|
24,877
|
|
|
1.1
|
%
|
|
56
|
|
|
4,956
|
|
|
0.3
|
%
|
|
73
|
|
|
8,449
|
|
|
0.5
|
%
|
|
87
|
|
|
13,001
|
|
|
0.8
|
%
|
Commercial
loans
|
31
|
|
|
2,868
|
|
|
0.7
|
%
|
|
26
|
|
|
2,262
|
|
|
0.6
|
%
|
|
34
|
|
|
9,243
|
|
|
2.3
|
%
|
|
41
|
|
|
3,233
|
|
|
0.8
|
%
|
Total loans
delinquent 30 days to 59 days
|
1,835
|
|
|
$
|
66,595
|
|
|
0.9
|
%
|
|
1,813
|
|
|
$
|
45,985
|
|
|
0.8
|
%
|
|
1,704
|
|
|
$
|
56,639
|
|
|
1.0
|
%
|
|
1,904
|
|
|
$
|
61,145
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60
days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
100
|
|
|
$
|
7,790
|
|
|
0.3
|
%
|
|
100
|
|
|
$
|
6,970
|
|
|
0.3
|
%
|
|
103
|
|
|
$
|
7,568
|
|
|
0.3
|
%
|
|
100
|
|
|
$
|
9,387
|
|
|
0.4
|
%
|
Home equity
loans
|
50
|
|
|
2,478
|
|
|
0.2
|
%
|
|
49
|
|
|
1,672
|
|
|
0.2
|
%
|
|
67
|
|
|
2,243
|
|
|
0.2
|
%
|
|
65
|
|
|
1,977
|
|
|
0.2
|
%
|
Consumer
loans
|
521
|
|
|
2,521
|
|
|
0.5
|
%
|
|
525
|
|
|
2,435
|
|
|
1.0
|
%
|
|
507
|
|
|
1,866
|
|
|
0.8
|
%
|
|
448
|
|
|
1,830
|
|
|
0.8
|
%
|
Commercial real
estate loans
|
21
|
|
|
8,228
|
|
|
0.3
|
%
|
|
21
|
|
|
2,038
|
|
|
0.1
|
%
|
|
35
|
|
|
3,968
|
|
|
0.2
|
%
|
|
33
|
|
|
4,596
|
|
|
0.3
|
%
|
Commercial
loans
|
7
|
|
|
598
|
|
|
0.1
|
%
|
|
4
|
|
|
209
|
|
|
0.1
|
%
|
|
16
|
|
|
1,555
|
|
|
0.4
|
%
|
|
17
|
|
|
10,158
|
|
|
2.6
|
%
|
Total loans
delinquent 60 days to 89 days
|
699
|
|
|
$
|
21,615
|
|
|
0.3
|
%
|
|
699
|
|
|
$
|
13,324
|
|
|
0.2
|
%
|
|
728
|
|
|
$
|
17,200
|
|
|
0.3
|
%
|
|
663
|
|
|
$
|
27,948
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90
days or more: **
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
215
|
|
|
$
|
16,350
|
|
|
0.6
|
%
|
|
225
|
|
|
$
|
17,696
|
|
|
0.7
|
%
|
|
273
|
|
|
$
|
24,625
|
|
|
1.0
|
%
|
|
266
|
|
|
$
|
24,286
|
|
|
1.0
|
%
|
Home equity
loans
|
143
|
|
|
6,112
|
|
|
0.5
|
%
|
|
139
|
|
|
6,606
|
|
|
0.6
|
%
|
|
171
|
|
|
8,344
|
|
|
0.8
|
%
|
|
175
|
|
|
8,479
|
|
|
0.8
|
%
|
Consumer
loans
|
523
|
|
|
2,926
|
|
|
0.6
|
%
|
|
539
|
|
|
2,450
|
|
|
1.0
|
%
|
|
470
|
|
|
2,057
|
|
|
0.9
|
%
|
|
427
|
|
|
1,936
|
|
|
0.8
|
%
|
Commercial real
estate loans
|
113
|
|
|
19,031
|
|
|
0.8
|
%
|
|
102
|
|
|
10,215
|
|
|
0.6
|
%
|
|
124
|
|
|
18,433
|
|
|
1.1
|
%
|
|
146
|
|
|
24,550
|
|
|
1.5
|
%
|
Commercial
loans
|
25
|
|
|
2,599
|
|
|
0.6
|
%
|
|
25
|
|
|
4,359
|
|
|
1.1
|
%
|
|
31
|
|
|
4,298
|
|
|
1.1
|
%
|
|
61
|
|
|
9,096
|
|
|
2.3
|
%
|
Total loans
delinquent 90 days or more
|
1,019
|
|
|
$
|
47,018
|
|
|
0.7
|
%
|
|
1,030
|
|
|
$
|
41,326
|
|
|
0.7
|
%
|
|
1,069
|
|
|
$
|
57,757
|
|
|
1.0
|
%
|
|
1,075
|
|
|
$
|
68,347
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
delinquent
|
3,553
|
|
|
$
|
135,228
|
|
|
1.9
|
%
|
|
3,542
|
|
|
$
|
100,635
|
|
|
1.7
|
%
|
|
3,501
|
|
|
$
|
131,596
|
|
|
2.3
|
%
|
|
3,642
|
|
|
$
|
157,440
|
|
|
2.8
|
%
|
|
* - Represents
delinquency, in dollars, divided by the respective total amount of
that type of loan outstanding.
|
** - Includes $3.7
million of purchased credit impaired loans.
|
Northwest
Bancshares, Inc. and Subsidiaries
|
Allowance for loan
losses
|
(Dollars in
thousands)
|
|
|
Quarter ended
December 31,
|
|
Year ended
December 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Allowance for loan
losses
|
|
|
|
|
|
|
|
Beginning
balance
|
$
|
60,547
|
|
|
71,650
|
|
|
67,518
|
|
|
71,348
|
|
Provision
|
4,595
|
|
|
1,078
|
|
|
9,712
|
|
|
20,314
|
|
Charge-offs
residential mortgage
|
(171)
|
|
|
(487)
|
|
|
(1,126)
|
|
|
(2,181)
|
|
Charge-offs home
equity
|
(1,097)
|
|
|
(493)
|
|
|
(2,424)
|
|
|
(1,783)
|
|
Charge-offs other
consumer
|
(2,561)
|
|
|
(1,813)
|
|
|
(8,274)
|
|
|
(6,423)
|
|
Charge-offs
commercial real estate
|
(1,216)
|
|
|
(2,931)
|
|
|
(6,326)
|
|
|
(8,422)
|
|
Charge-offs
commercial
|
(508)
|
|
|
(1,070)
|
|
|
(8,183)
|
|
|
(11,936)
|
|
Recoveries
|
3,083
|
|
|
1,584
|
|
|
11,775
|
|
|
6,601
|
|
Ending
balance
|
$
|
62,672
|
|
|
67,518
|
|
|
62,672
|
|
|
67,518
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans, annualized
|
0.14
|
%
|
|
0.35
|
%
|
|
0.23
|
%
|
|
0.41
|
%
|
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 December 31,
|
|
2015
|
|
2014
|
|
|
|
|
|
Avg.
|
|
|
|
|
|
Avg.
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Cost (g)
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Cost (g)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
(a) (b) (d)
|
$
|
7,148,603
|
|
|
81,428
|
|
|
4.52
|
%
|
|
$
|
5,961,303
|
|
|
71,669
|
|
|
4.77
|
%
|
Mortgage-backed
securities (c)
|
519,736
|
|
|
2,301
|
|
|
1.77
|
%
|
|
536,990
|
|
|
2,357
|
|
|
1.76
|
%
|
Investment securities
(c) (d)
|
427,363
|
|
|
2,394
|
|
|
2.24
|
%
|
|
495,554
|
|
|
3,289
|
|
|
2.65
|
%
|
FHLB stock
|
38,651
|
|
|
499
|
|
|
5.12
|
%
|
|
36,315
|
|
|
383
|
|
|
4.22
|
%
|
Other
interest-earning deposits
|
40,410
|
|
|
13
|
|
|
0.13
|
%
|
|
251,229
|
|
|
164
|
|
|
0.26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
8,174,763
|
|
|
86,635
|
|
|
4.20
|
%
|
|
7,281,391
|
|
|
77,862
|
|
|
4.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest earning
assets (e)
|
747,317
|
|
|
|
|
|
|
546,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
8,922,080
|
|
|
|
|
|
|
$
|
7,828,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings
deposits
|
$
|
1,378,377
|
|
|
871
|
|
|
0.25
|
%
|
|
$
|
1,209,117
|
|
|
828
|
|
|
0.27
|
%
|
Interest-bearing
demand deposits
|
1,083,524
|
|
|
157
|
|
|
0.06
|
%
|
|
884,542
|
|
|
147
|
|
|
0.07
|
%
|
Money market deposit
accounts
|
1,279,181
|
|
|
873
|
|
|
0.27
|
%
|
|
1,182,041
|
|
|
797
|
|
|
0.27
|
%
|
Time
deposits
|
1,720,895
|
|
|
4,534
|
|
|
1.05
|
%
|
|
1,506,526
|
|
|
4,334
|
|
|
1.14
|
%
|
Borrowed funds
(f)
|
906,574
|
|
|
6,730
|
|
|
2.95
|
%
|
|
894,509
|
|
|
6,694
|
|
|
2.97
|
%
|
Junior subordinated
debentures
|
116,626
|
|
|
1,321
|
|
|
4.43
|
%
|
|
103,094
|
|
|
1,182
|
|
|
4.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-bearing liabilities
|
6,485,177
|
|
|
14,486
|
|
|
0.89
|
%
|
|
5,779,829
|
|
|
13,982
|
|
|
0.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
1,145,276
|
|
|
|
|
|
|
897,082
|
|
|
|
|
|
Noninterest bearing
liabilities
|
133,323
|
|
|
|
|
|
|
79,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
7,763,776
|
|
|
|
|
|
|
6,756,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
1,158,304
|
|
|
|
|
|
|
1,071,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
8,922,080
|
|
|
|
|
|
|
$
|
7,828,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/
Interest rate spread
|
|
|
72,149
|
|
|
3.31
|
%
|
|
|
|
63,880
|
|
|
3.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets/ Net interest margin
|
$
|
1,689,586
|
|
|
|
|
3.53
|
%
|
|
$
|
1,501,562
|
|
|
|
|
3.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to interest-
bearing liabilities
|
1.26
|
X
|
|
|
|
|
|
1.26
|
X
|
|
|
|
|
|
|
|
(a)
|
Average gross loans
receivable includes loans held as available-for-sale and loans
placed on nonaccrual status.
|
(b)
|
Interest income
includes accretion/ amortization of deferred loan fees/ expenses,
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 - 4.49% and
4.74%, respectively, Investment securities - 1.82% and 2.02%,
respectively, Interest-earning assets - 4.16% and 4.21%,
respectively. GAAP basis net interest rate spreads were 3.27% and
3.25%, respectively, and GAAP basis net interest margins were 3.48%
and 3.44%, 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.
|
|
|
Year ended December 31,
|
|
2015
|
|
2014
|
|
|
|
|
|
Avg.
|
|
|
|
|
|
Avg.
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Cost (g)
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Cost (g)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
(a) (b) (d)
|
$
|
6,460,078
|
|
|
300,638
|
|
|
4.65
|
%
|
|
$
|
5,883,244
|
|
|
284,107
|
|
|
4.83
|
%
|
Mortgage-backed
securities (c)
|
500,797
|
|
|
8,823
|
|
|
1.76
|
%
|
|
581,906
|
|
|
10,320
|
|
|
1.77
|
%
|
Investment securities
(c) (d)
|
469,568
|
|
|
11,155
|
|
|
2.38
|
%
|
|
499,718
|
|
|
13,792
|
|
|
2.76
|
%
|
FHLB stock
(h)
|
37,500
|
|
|
1,788
|
|
|
4.77
|
%
|
|
41,975
|
|
|
1,809
|
|
|
4.33
|
%
|
Other
interest-earning deposits
|
179,201
|
|
|
431
|
|
|
0.24
|
%
|
|
325,201
|
|
|
837
|
|
|
0.25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
7,647,144
|
|
|
322,835
|
|
|
4.22
|
%
|
|
7,332,044
|
|
|
310,865
|
|
|
4.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest earning
assets (e)
|
677,449
|
|
|
|
|
|
|
561,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
8,324,593
|
|
|
|
|
|
|
$
|
7,893,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings
deposits
|
$
|
1,300,102
|
|
|
3,387
|
|
|
0.26
|
%
|
|
$
|
1,221,304
|
|
|
3,286
|
|
|
0.27
|
%
|
Interest-bearing
demand deposits
|
976,789
|
|
|
568
|
|
|
0.06
|
%
|
|
882,980
|
|
|
587
|
|
|
0.07
|
%
|
Money market deposit
accounts
|
1,202,143
|
|
|
3,222
|
|
|
0.27
|
%
|
|
1,181,235
|
|
|
3,174
|
|
|
0.27
|
%
|
Time
deposits
|
1,540,905
|
|
|
16,878
|
|
|
1.10
|
%
|
|
1,575,595
|
|
|
18,275
|
|
|
1.16
|
%
|
Borrowed funds
(f)
|
925,683
|
|
|
27,347
|
|
|
2.95
|
%
|
|
881,118
|
|
|
26,574
|
|
|
3.02
|
%
|
Junior subordinated
debentures
|
108,507
|
|
|
4,925
|
|
|
4.48
|
%
|
|
103,094
|
|
|
4,691
|
|
|
4.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-bearing liabilities
|
6,054,129
|
|
|
56,327
|
|
|
0.93
|
%
|
|
5,845,326
|
|
|
56,587
|
|
|
0.97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
1,001,263
|
|
|
|
|
|
|
864,322
|
|
|
|
|
|
Noninterest bearing
liabilities
|
166,530
|
|
|
|
|
|
|
94,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
7,221,922
|
|
|
|
|
|
|
6,803,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
1,102,671
|
|
|
|
|
|
|
1,089,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
8,324,593
|
|
|
|
|
|
|
$
|
7,893,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/
Interest rate spread
|
|
|
266,508
|
|
|
3.29
|
%
|
|
|
|
254,278
|
|
|
3.27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets/ Net interest margin
|
$
|
1,593,015
|
|
|
|
|
3.49
|
%
|
|
$
|
1,486,718
|
|
|
|
|
3.47
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to interest-
bearing liabilities
|
1.26
|
X
|
|
|
|
|
|
1.25
|
X
|
|
|
|
|
|
|
|
(a)
|
Average gross loans
receivable includes loans held as available-for-sale and loans
placed on nonaccrual status.
|
(b)
|
Interest income
includes accretion/ amortization of deferred loan fees/ expenses,
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 - 4.62% and
4.79%, respectively, Investment securities - 1.88% and 2.08%,
respectively, Interest-earning assets - 4.17% and 4.17%,
respectively. GAAP basis net interest rate spreads were 3.24% and
3.20%, respectively, and GAAP basis net interest margins were 3.43%
and 3.39%, respectively.
|
(h)
|
Excludes $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
December 31, 2015
|
|
Quarter ended
September 30, 2015
|
|
|
|
|
|
Avg.
|
|
|
|
|
|
Avg.
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Cost (g)
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Cost (g)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
(a) (b) (d)
|
$
|
7,148,603
|
|
|
81,428
|
|
|
4.52
|
%
|
|
$
|
6,584,664
|
|
|
76,583
|
|
|
4.61
|
%
|
Mortgage-backed
securities (c)
|
519,736
|
|
|
2,301
|
|
|
1.77
|
%
|
|
498,757
|
|
|
2,230
|
|
|
1.79
|
%
|
Investment securities
(c) (d)
|
427,363
|
|
|
2,394
|
|
|
2.24
|
%
|
|
482,666
|
|
|
2,754
|
|
|
2.28
|
%
|
FHLB stock
|
38,651
|
|
|
499
|
|
|
5.12
|
%
|
|
39,552
|
|
|
451
|
|
|
4.52
|
%
|
Other
interest-earning deposits
|
40,410
|
|
|
13
|
|
|
0.13
|
%
|
|
162,041
|
|
|
99
|
|
|
0.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
8,174,763
|
|
|
86,635
|
|
|
4.20
|
%
|
|
7,767,680
|
|
|
82,117
|
|
|
4.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest earning
assets (e)
|
747,317
|
|
|
|
|
|
|
846,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
8,922,080
|
|
|
|
|
|
|
$
|
8,614,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Savings
deposits
|
$
|
1,378,377
|
|
|
871
|
|
|
0.25
|
%
|
|
$
|
1,324,620
|
|
|
865
|
|
|
0.26
|
%
|
Interest-bearing
demand deposits
|
1,083,524
|
|
|
157
|
|
|
0.06
|
%
|
|
1,022,585
|
|
|
149
|
|
|
0.06
|
%
|
Money market deposit
accounts
|
1,279,181
|
|
|
873
|
|
|
0.27
|
%
|
|
1,217,122
|
|
|
825
|
|
|
0.27
|
%
|
Time
deposits
|
1,720,895
|
|
|
4,534
|
|
|
1.05
|
%
|
|
1,577,159
|
|
|
4,324
|
|
|
1.09
|
%
|
Borrowed funds
(f)
|
906,574
|
|
|
6,730
|
|
|
2.95
|
%
|
|
906,410
|
|
|
6,713
|
|
|
2.94
|
%
|
Junior subordinated
debentures
|
116,626
|
|
|
1,321
|
|
|
4.43
|
%
|
|
111,213
|
|
|
1,274
|
|
|
4.48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-bearing liabilities
|
6,485,177
|
|
|
14,486
|
|
|
0.89
|
%
|
|
6,159,109
|
|
|
14,150
|
|
|
0.91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
1,145,276
|
|
|
|
|
|
|
1,054,270
|
|
|
|
|
|
Noninterest bearing
liabilities
|
133,323
|
|
|
|
|
|
|
275,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
7,763,776
|
|
|
|
|
|
|
7,488,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
1,158,304
|
|
|
|
|
|
|
1,125,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
8,922,080
|
|
|
|
|
|
|
$
|
8,614,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/
Interest rate spread
|
|
|
72,149
|
|
|
3.31
|
%
|
|
|
|
67,967
|
|
|
3.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets/ Net interest margin
|
$
|
1,689,586
|
|
|
|
|
3.53
|
%
|
|
$
|
1,608,571
|
|
|
|
|
3.50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to interest-
bearing liabilities
|
1.26
|
X
|
|
|
|
|
|
1.26
|
X
|
|
|
|
|
|
|
|
(a)
|
Average gross loans
receivable includes loans held as available-for-sale and loans
placed on nonaccrual status.
|
(b)
|
Interest income
includes accretion/ amortization of deferred loan fees/ expenses,
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 - 4.49% and
4.58%, respectively, Investment securities - 1.82% and 1.84%,
respectively, Interest-earning assets - 4.16% and 4.14%,
respectively. GAAP basis net interest rate spreads were 3.27% and
3.23%, respectively, and GAAP basis net interest margins were 3.48%
and 3.45%, respectively.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-fourth-quarter-2015-earnings-and-increase-in-quarterly-dividend-300209129.html
SOURCE Northwest Bancshares, Inc.