WARREN, Pa., Jan. 25 /PRNewswire-FirstCall/ -- Northwest
Bancshares, Inc. (NASDAQ:NWBINASDAQ:formerlyNASDAQ:NWSB) announced
net income for the quarter ended December 31, 2009 of $1.0 million,
or $0.01 per diluted share. This represents a decrease of $10.3
million over the same quarter last year when net income was $11.3
million, or $0.10 per diluted share. The annualized returns on
average shareholders' equity and average assets for the current
quarter were 0.46% and 0.05% compared to 7.27% and 0.65% for the
same quarter last year. In making the announcement, the Company
emphasized that current quarter earnings were significantly reduced
by the establishment of a charitable foundation in the amount of
$13.8 million, in conjunction with the Company's second-step stock
offering. During the quarter ended December 31, 2009, the Company
converted from a partially-public mutual holding company to a
fully-public stock holding company by completing a second-step
stock offering and selling 68.8 million shares of common stock at
$10 per share. As a part of the conversion, Northwest Bancshares,
Inc. contributed $1.0 million of the offering proceeds and issued
1.3 million shares of common stock to a charitable foundation for
the benefit of the communities in which it operates. The Company
recognized a pre-tax expense of $13.8 million during the quarter as
a result of this contribution. In addition to the 68.8 million
common shares sold in the offering, the Company exchanged 40.5
million common shares of Northwest Bancshares, Inc. for the 18.0
million common shares of Northwest Bancorp, Inc. that were owned by
the public prior to the conversion. This represents an exchange
ratio of 2.25 to 1. As a result, the Company had 110.6 million
shares of common stock outstanding as of December 31, 2009. Also
contributing to the decrease in quarterly earnings was a
significant increase in the provision for loan losses, which was
$14.5 million for the quarter ended December 31, 2009 compared to
$10.2 million in the same quarter a year ago. This increase in the
provision was considered necessary given current economic
conditions and the stress placed on the Company's borrowers. The
Company noted, however, that actual loan charge-offs for the
quarter were only $11.9 million. The Company also announced that
its Board of Directors declared a quarterly cash dividend of $0.10
per share payable on February 18, 2010, to shareholders of record
as of February 4, 2010. This represents the 61st consecutive
quarter in which the Company has paid a cash dividend. Shareholders
who owned Northwest shares prior to the second-step conversion now
own 2.25 new shares for each share they owned prior to the
conversion, and the total dividends they will receive from those
shares this quarter will be slightly higher than they were last
quarter. In looking at the various components of quarterly income,
the Company noted that net interest income decreased by $1.5
million, or 2.5%, for the quarter ended December 31, 2009 compared
to the same quarter last year as a result of a decrease in net
interest margin to 3.45% from 3.83%. The decrease in net interest
margin resulted primarily from the Company carrying, on average,
$458.4 million more in overnight funds than in the previous year's
quarter earning an average rate of 0.19% compared to an average
rate of 0.87% in the previous year. The increase in overnight funds
was primarily attributable to the substantial increase in deposits
experienced over the past several quarters as well as the
additional capital received from the second-step common stock
offering. These funds are temporarily being invested in overnight
funds until they can be deployed to purchase investment securities
and to fund loans. Noninterest expense increased by $20.8 million,
or 47.8%, to $64.2 million for the quarter ended December 31, 2009
from $43.5 million for the quarter ended December 31, 2008
primarily due to increases in compensation and employee benefit
costs, FDIC insurance assessments and marketing expenses as well as
the funding of the charitable foundation. Compensation and employee
benefits increased by $2.2 million, or 9.5%, as the Company made an
ESOP contribution of $3.1 million to benefit all Northwest
employees in connection with the completion of the second-step
conversion offering. Federal deposit insurance premiums increased
by $1.1 million, or 110.6%, due to increases in both the Company's
deposits and the rate charged by the FDIC. Marketing expenses
increased by $2.2 million, or 114.4%, to $4.1 million for the
quarter ended December 31, 2009 from $1.9 million for the quarter
ended December 31, 2008 as a result of the initiation of a major
campaign focused on the acquisition of checking account
relationships. Net income for the year ended December 31, 2009 of
$32.7 million, or $0.30 per diluted share, represents a decrease of
$15.5 million, or 32.2% compared to net income of $48.2 million, or
$0.44 per diluted share, for the year ended December 31, 2008. This
decrease resulted primarily from the Company recording a provision
for loan losses which was $19.0 million, or 83.1%, higher than the
previous year. The increase in the provision was considered
necessary given the current economic environment. Also contributing
to the decrease in income was the previously mentioned $13.8
million charitable contribution and a $3.3 million special
assessment by the FDIC. Partially offsetting these reductions in
net income was a $9.3 million, or 4.2%, increase in net interest
income and a $14.6 million, or 37.6%, increase in noninterest
income. Included in the increase in noninterest income was a $3.5
million gain recognized as part of the acquisition of Keystone
State Savings Bank, which occurred October 23, 2009. The annualized
returns on average shareholders' equity and average assets were
4.71% and 0.46%, respectively, for the current year compared to
7.75% and 0.70%, respectively, for the prior year. 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 51
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 http://www.northwestsavingsbank.com/. Forward-Looking
Statements - This press release may contain forward-looking
statements with respect to the financial condition and results of
operations of Northwest Bancshares, Inc. including, without
limitations, statements relating to the earnings outlook of the
Company. These forward-looking statements involve certain risks and
uncertainties. Factors that may cause actual results to differ
materially from those contemplated by such forward-looking
statements, include among others, the following possibilities: (1)
changes in the interest rate environment; (2) competitive pressure
among financial services companies; (3) general economic conditions
including an increase in non-performing loans that could result
from an economic downturn; (4) changes in legislation or regulatory
requirements; (5) difficulties in continuing to improve operating
efficiencies; (6) difficulties in the integration of acquired
businesses; and (7) increased risk associated with an increase in
commercial real-estate and business loans and non-performing loans.
Management has no obligation to revise or update these
forward-looking statements to reflect events or circumstances that
arise after the date of this release. Northwest Bancshares, Inc.
and Subsidiaries Consolidated Statements of Financial Condition
(Dollars in thousands, except per share amounts) December December
31, 31, Assets 2009 2008 ------ ---- ---- Cash and cash equivalents
$69,265 55,815 Interest-earning deposits in other financial
institutions 1,037,893 16,795 Federal funds sold and other
short-term investments 632 7,312 Marketable securities
available-for-sale (amortized cost of $1,059,177 and $1,144,435)
1,067,089 1,139,170 --------- --------- Total cash, interest-
earning deposits and marketable securities 2,174,879 1,219,092
Loans held for sale 1,164 18,738 Mortgage loans - one- to four-
family 2,334,538 2,447,506 Home equity loans 1,067,584 1,013,876
Consumer loans 286,292 289,602 Commercial real estate loans
1,238,217 1,071,182 Commercial business loans 371,670 355,917
------- ------- Total loans receivable 5,299,465 5,196,821
Allowance for loan losses (70,403) (54,929) ------- ------- Loans
receivable, net 5,229,062 5,141,892 Federal Home Loan Bank stock,
at cost 63,242 63,143 Accrued interest receivable 25,780 27,252
Real estate owned, net 20,257 16,844 Premises and Equipment, net
124,316 115,842 Bank owned life insurance 128,270 123,479 Goodwill
171,363 171,363 Other intangible assets 4,678 7,395 Other assets
83,451 43,939 ------ ------ Total assets $8,025,298 6,930,241
========== ========= Liabilities and Shareholders' equity
--------------------- Liabilities: Noninterest-bearing demand
deposits $487,036 394,011 Interest-bearing demand deposits 768,110
706,120 Savings deposits 1,744,537 1,480,620 Time deposits
2,624,741 2,457,460 --------- --------- Total deposits 5,624,424
5,038,211 Borrowed funds 897,326 1,067,945 Advances by borrowers
for taxes and insurance 22,034 26,190 Accrued interest payable
4,493 5,194 Other liabilities 57,412 70,663 Junior subordinated
debentures 103,094 108,254 ------- ------- Total liabilities
6,708,783 6,316,457 Shareholders' equity: Preferred stock, $0.01
par value and $0.10 par value, respectively: 50,000,000 shares
authorized, no shares issued - - Common stock, $0.01 par value:
500,000,000 shares authorized, 110,641,858 shares issued 1,106 -
Common stock, $0.10 par value: 500,000,000 shares authorized,
51,244,974 shares issued - 5,124 Paid-in-capital 828,195 218,332
Retained earnings 508,842 490,326 Unallocated common stock of
Employee Stock Ownership Plan (11,651) - Accumulated other
comprehensive loss (9,977) (30,575) Treasury stock of -0-and
2,742,800 shares, at cost - (69,423) --- ------- Total
shareholders' equity 1,316,515 613,784 --------- ------- Total
liabilities and shareholders' equity $8,025,298 6,930,241
========== ========= Equity to assets 16.40% 8.86% Tangible common
equity to assets 14.53% 6.36% Book value per share* $11.90 $5.62 *
Tangible book value per share* $10.31 $3.93 * Closing market price
per share* $11.27 $9.50 * Full time equivalent employees 1,867
1,860 Number of banking offices 171 167 * -Adjusted for 2.25 to 1
exchange rate. Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Dollars in thousands, except per
share amounts) Three months ended December 31, 2009 2008 ---- ----
Interest income: Loans receivable $80,322 83,161 Mortgage-backed
securities 6,405 8,830 Taxable investment securities 1,246 2,102
Tax-free investment securities 2,678 3,032 Interest-earning
deposits 226 42 Total interest income 90,877 97,167 Interest
expense: Deposits 22,839 27,259 Borrowed funds 9,994 10,405 Total
interest expense 32,833 37,664 Net interest income 58,044 59,503
Provision for loan losses 14,500 10,212 Net interest income after
provision for loan losses 43,544 49,291 Noninterest income:
Impairment losses on securities (5,920) (3,653) Noncredit related
losses on securities not expected to be sold (recognized in other
comprehensive income) 5,004 - ----- --- Net impairment losses (916)
(3,653) Gain on sale of investments, net 26 2,199 Service charges
and fees 9,343 8,337 Trust and other financial services income
1,958 1,491 Insurance commission income 619 619 Gain/ (loss) on
sale of real estate owned, net (120) 11 Income from bank owned life
insurance 1,195 1,213 Mortgage banking income 702 12 Non-cash
recovery/ (impairment) of MSRs 290 (2,330) Gain on bargain purchase
3,503 - Other operating income 695 1,366 Total noninterest income
17,295 9,265 Noninterest expense: Compensation and employee
benefits 25,637 23,408 Premises and occupancy costs 5,442 5,400
Office operations 3,372 3,185 Processing expenses 5,829 4,861
Marketing expenses 4,106 1,915 Federal deposit insurance premiums
2,148 1,020 FDIC Special Assessment - - Professional services 691
668 Amortization of intangible assets 649 848 Loss on early
extinguishment of debt Contribution to charitable foundation 13,822
- Other expense 2,541 2,169 Total noninterest expense 64,237 43,474
(Loss)/income before income taxes (3,398) 15,082 Income tax
(benefit)/ expense (4,404) 3,798 ------ Net income $1,006 11,284
====== Basic earnings per share 0.01 $0.10 * Diluted earnings per
share 0.01 $0.10 * Annualized return on average equity 0.46% 7.27%
Annualized return on average assets 0.05% 0.65% Basic common shares
outstanding 109,286,606 108,873,585 * Diluted common shares
outstanding 109,820,238 109,346,564 * Year ended December 31, 2009
2008 ---- ---- Interest income: Loans receivable 320,121 327,128
Mortgage-backed securities 27,263 34,694 Taxable investment
securities 5,384 11,828 Tax-free investment securities 11,054
12,253 Interest-earning deposits 641 2,756 Total interest income
364,463 388,659 Interest expense: Deposits 95,394 137,061 Borrowed
funds 40,412 32,232 Total interest expense 135,806 169,293 Net
interest income 228,657 219,366 Provision for loan losses 41,847
22,851 Net interest income after provision for loan losses 186,810
196,515 Noninterest income: Impairment losses on securities
(12,408) (16,004) Noncredit related losses on securities not
expected to be sold (recognized in other comprehensive income)
6,311 - ----- --- Net impairment losses (6,097) (16,004) Gain on
sale of investments, net 403 6,037 Service charges and fees 34,811
32,432 Trust and other financial services income 6,307 6,718
Insurance commission income 2,658 2,376 Gain/ (loss) on sale of
real estate owned, net (4,054) (428) Income from bank owned life
insurance 4,791 4,797 Mortgage banking income 5,594 665 Non-cash
recovery/ (impairment) of MSRs 1,840 (2,165) Gain on bargain
purchase 3,503 Other operating income 3,581 4,324 Total noninterest
income 53,337 38,752 Noninterest expense: Compensation and employee
benefits 95,594 91,129 Premises and occupancy costs 21,963 21,924
Office operations 12,947 13,237 Processing expenses 21,312 18,652
Marketing expenses 9,152 5,500 Federal deposit insurance premiums
8,309 3,884 FDIC Special Assessment 3,288 Professional services
2,590 2,582 Amortization of intangible assets 3,020 4,387 Loss on
early extinguishment of debt 705 Contribution to charitable
foundation 13,822 Other expense 8,497 8,128 Total noninterest
expense 200,494 170,128 (Loss)/ income before income taxes 39,653
65,139 Income tax (benefit)/ expense 7,000 16,968 Net income 32,653
48,171 Basic earnings per share $0.30 $0.44 * Diluted earnings per
share $0.30 $0.44 * Annualized return on average equity 4.71% 7.75%
Annualized return on average assets 0.46% 0.70% Basic common shares
outstanding 109,078,129 108,815,648 * Diluted common shares
outstanding 109,459,875 109,346,454 * * - Adjusted for 2.25 to 1
exchange ratio. Northwest Bancshares, Inc. and Subsidiaries
Supplementary data (Dollars in thousands) Three months ended Year
ended December 31, December 31, 2009 2008 2009 2008 ---- ---- ----
---- Allowance for loan losses Beginning balance $67,775 47,924
54,929 41,784 Provision 14,500 10,212 41,847 22,851 Charge-offs
mortgage (137) (332) (1,437) (1,513) Charge-offs consumer (2,530)
(1,739) (7,045) (6,607) Charge-offs commercial (9,633) (1,425)
(19,334) (3,490) Recoveries 428 289 1,443 1,904 --- --- ----- -----
Ending balance $70,403 54,929 70,403 54,929 ======= ====== ======
====== Net charge-offs to average loans, annualized 0.91% 0.25%
0.51% 0.19% ------------------ ---- ---- ---- ---- December 31,
------------ 2009 2008 2007 2006 ---- ---- ---- ---- Nonperforming
loans $124,626 99,203 49,610 40,525 Real estate owned, net 20,257
16,844 8,667 6,653 ------ ------ ----- ----- Nonperforming assets
$144,883 116,047 58,277 47,178 ======== ======= ====== ======
Nonperforming loans to total loans 2.35% 1.91% 1.03% 0.91%
Nonperforming assets to total assets 1.81% 1.67% 0.87% 0.72%
Allowance for loan losses to total loans 1.33% 1.06% 0.86% 0.85%
Allowance for loan losses to nonperforming loans 56.49% 55.37%
84.22% 92.92% ------------------ ----- ----- ----- ----- Northwest
Bancshares, Inc. and Subsidiaries Supplementary data (Dollars in
thousands) Loans past due schedule (Number of loans and dollar
amount of loans) December 31, ------------ 2009 * 2008 * ---- ----
Loans past due 30 days to 59 days: One- to four- family residential
loans 350 $27,998 1.2% 392 $32,988 1.3% Consumer loans 1,100 11,226
0.8% 1,157 11,295 0.9% Multifamily and commercial RE loans 85
16,152 1.3% 99 18,901 1.8% Commercial business loans 48 3,293 0.9%
86 7,700 2.2% --- ----- --- --- ----- --- Total loans past due 30
days to 59 days 1,583 $58,669 1.1% 1,734 $70,884 1.4% ===== =======
=== ===== ======= === Loans past due 60 days to 89 days: One- to
four- family residential loans 85 $6,772 0.3% 101 $7,599 0.3%
Consumer loans 392 3,029 0.2% 379 2,836 0.2% Multifamily and
commercial RE loans 35 5,811 0.5% 54 8,432 0.8% Commercial business
loans 26 2,474 0.7% 45 3,801 1.1% --- ----- --- --- ----- --- Total
loans past due 60 days to 89 days 538 $18,086 0.3% 579 $22,668 0.4%
=== ======= === === ======= === Loans past due 90 days or more:
One- to four- family residential loans 279 $29,373 1.3% 223 $20,435
0.8% Consumer loans 727 12,544 0.9% 687 9,756 0.7% Multifamily and
commercial RE loans 199 49,594 4.0% 155 43,828 4.1% Commercial
business loans 124 18,269 4.9% 114 25,184 7.1% --- ------ --- ---
------ --- Total loans past due 90 days or more 1,329 $109,780 2.1%
1,179 $99,203 1.9% ===== ======== === ===== ======= === Loans past
due schedule (Number of loans and dollar amount of loans) December
31, ------------ 2007 * ---- Loans past due 30 days to 59 days:
One- to four- family residential loans 361 $27,270 1.1% Consumer
loans 1,331 10,550 0.8% Multifamily and commercial RE loans 88
11,331 1.3% Commercial business loans 70 9,947 3.0% --- ----- Total
loans past due 30 days to 59 days 1,850 $59,098 1.2% ===== =======
Loans past due 60 days to 89 days: One- to four- family residential
loans 99 $6,077 0.3% Consumer loans 437 2,676 0.2% Multifamily and
commercial RE loans 41 4,984 0.6% Commercial business loans 34
2,550 0.8% --- ----- Total loans past due 60 days to 89 days 611
$16,287 0.3% === ======= Loans past due 90 days or more: One- to
four- family residential loans 193 $12,542 0.5% Consumer loans 744
7,582 0.6% Multifamily and commercial RE loans 105 24,323 2.9%
Commercial business loans 84 5,163 1.6% --- ----- Total loans past
due 90 days or more 1,126 $49,610 1.0% ===== ======= * -Represents
delinquency, in dollars, divided by the respective total amount of
that type of loan outstanding. Northwest Bancshares, Inc. and
Subsidiaries Analysis of loan portfolio by geographic location as
of December 31, 2009: (Dollars in thousands) Loans outstanding:
------------------ Mortgage (1) Consumer (2) -------- --------
Pennsylvania $1,913,127 81.9% 1,189,667 87.9% New York 136,729 5.9%
98,870 7.3% Ohio 24,973 1.1% 17,048 1.3% Maryland 232,146 9.9%
39,227 2.9% Florida 28,727 1.2% 9,064 0.7% ------ --- ----- ---
Total $2,335,702 100.0% 1,353,876 100.0% ========== ===== =========
===== Loans outstanding: ------------------ Commercial (3) Total
(4) ---------- ----- Pennsylvania 1,057,995 65.7% 4,160,789 78.4%
New York 302,145 18.8% 537,744 10.1% Ohio 43,338 2.7% 85,359 1.6%
Maryland 157,262 9.8% 428,635 8.1% Florida 49,147 3.1% 86,938 1.6%
------ --- ------ --- Total 1,609,887 100.0% 5,299,465 100.0%
========= ===== ========= ===== (1) - Percentage of total mortgage
loans (2) - Percentage of total consumer loans (3) - Percentage of
total commercial loans (4) - Percentage of total loans Loans 90 or
more past due: ---------------- Mortgage (5) Consumer (6) --------
-------- Pennsylvania $21,683 1.1% 9,571 0.8% New York 386 0.3% 230
0.2% Ohio 196 0.8% 78 0.5% Maryland 702 0.3% 1,000 2.5% Florida
6,406 22.3% 1,665 18.4% ---- ---- Total $29,373 1.3% 12,544 0.9%
======= === === Loans 90 or more past due: ----------------
Commercial (7) Total (8) ---------- ----- Pennsylvania 46,649 4.4%
77,903 1.9% New York 1,040 0.3% 1,656 0.3% Ohio 496 1.1% 770 0.9%
Maryland 11,942 7.6% 13,644 3.2% Florida 7,736 15.7% 15,807 18.2%
---- ---- Total 67,863 4.2% 109,780 2.1% === == === (5) -
Percentage of mortgage loans in that geographic area (6) -
Percentage of consumer loans in that geographic area (7) -
Percentage of commercial loans in that geographic area (8) -
Percentage of total loans in that geographic area Northwest
Bancshares, Inc. and Subsidiaries Supplementary data (Dollars in
thousands) Marketable securities available-for-sale as of December
31, 2009: ---------------------- Gross Gross unrealized unrealized
Amortized holding holding Market cost gains losses value ---- -----
------ ----- Debt issued by the U.S. government and agencies: Due
in one year or less $76 - (1) 75 Debt issued by government
sponsored enterprises: Due in one year -five years 1,977 153 -
2,130 Due in five years -ten years 21,912 524 - 22,436 Due after
ten years 52,667 1,128 (498) 53,297 Equity securities 1,054 191
(118) 1,127 Municipal securities: Due in one year -five years 3,146
68 - 3,214 Due in five years -ten years 41,170 1,163 - 42,333 Due
after ten years 190,812 2,774 (1,677) 191,909 Corporate trust
preferred securities: Due in one year -five years 500 - - 500 Due
after ten years 26,882 168 (10,549) 16,501 Mortgage-backed
securities: Fixed rate pass-through 145,363 6,440 (47) 151,756
Variable rate pass- through 231,232 7,894 (85) 239,041 Fixed rate
non-agency CMO 18,698 48 (1,567) 17,179 Fixed rate agency CMO
19,994 982 - 20,976 Variable rate non- agency CMO 9,296 - (1,391)
7,905 Variable rate agency CMO 294,398 2,642 (330) 296,710 -------
----- ---- ------- Total mortgage-backed securities 718,981 18,006
(3,420) 733,567 ------- ------ ------ ------- Total marketable
securities available- for-sale $1,059,177 24,175 (16,263) 1,067,089
========== ====== ======= ========= Issuers of mortgage- backed
securities as of December 31, 2009: ------------------------ Fannie
Mae $250,145 7,202 (366) 256,981 Ginnie Mae 124,455 1,726 (17)
126,164 Freddie Mac 315,606 9,029 (73) 324,562 Non-agency 28,775 49
(2,964) 25,860 ------ --- ------ ------ Total $718,981 18,006
(3,420) 733,567 ======== ====== ====== ======= 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. Three months
ended December 31, 2009 --- Average Interest Avg. Balance Yield/
Cost ---- ASSETS: ------- Interest-earning assets: Loans receivable
(a) (b) (d) $5,242,823 80,160 6.13% Mortgage-backed securities (c)
744,755 6,405 3.44% Investment securities (c) (d) (e) 349,309 5,365
6.14% FHLB stock 63,216 - 0.00% Other interest-earning deposits
477,269 226 0.19% ------- --- Total interest-earning assets
6,877,372 92,156 5.37% Noninterest earning assets (f) 669,511
------- TOTAL ASSETS $7,546,883 ========== LIABILITIES AND
SHAREHOLDERS' EQUITY: -----------------------------
Interest-bearing liabilities: Savings accounts $934,213 1,852 0.79%
Interest-bearing demand accounts 755,158 434 0.23% Money market
accounts 805,347 1,768 0.87% Certificate accounts 2,604,329 18,785
2.86% Borrowed funds (g) 899,711 8,558 3.77% Junior subordinated
debentures 103,094 1,436 5.45% ------- ----- Total interest-bearing
liabilities 6,101,852 32,833 2.13% Noninterest bearing liabilities
569,269 ------- Total liabilities 6,671,121 Shareholders' equity
875,762 ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$7,546,883 ========== Net interest income/ Interest rate spread
59,323 3.24% Net interest-earning assets/ Net interest margin
$775,520 3.45% Ratio of interest-earning assets to interest-bearing
liabilities 1.13X ---------------------------- ----- Three months
ended December 31, 2008 --- Average Interest Avg. Balance Yield/
Cost ---- ASSETS: ------- Interest-earning assets: Loans receivable
(a) (b) (d) 5,161,835 83,554 6.42% Mortgage-backed securities (c)
761,155 8,830 4.64% Investment securities (c) (d) (e) 421,417 6,452
6.12% FHLB stock 60,969 314 2.06% Other interest-earning deposits
18,846 42 0.87% ------ --- Total interest-earning assets 6,424,222
99,192 6.13% Noninterest earning assets (f) 496,051 ------- TOTAL
ASSETS 6,920,273 ========= LIABILITIES AND SHAREHOLDERS' EQUITY:
----------------------------- Interest-bearing liabilities: Savings
accounts 779,238 2,272 1.16% Interest-bearing demand accounts
722,807 1,305 0.72% Money market accounts 708,655 2,976 1.67%
Certificate accounts 2,452,075 20,706 3.35% Borrowed funds (g)
1,009,931 9,013 3.54% Junior subordinated debentures 108,260 1,392
5.03% ------- ----- Total interest-bearing liabilities 5,780,966
37,664 2.58% Noninterest bearing liabilities 518,031 ------- Total
liabilities 6,298,997 Shareholders' equity 621,276 ------- TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY 6,920,273 ========= Net
interest income/ Interest rate spread 61,528 3.55% Net
interest-earning assets/ Net interest margin 643,256 3.83% Ratio of
interest-earning assets to interest-bearing liabilities 1.11X
---------------------------- ----- (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 Fannie Mae and
Freddie Mac stock. (f) Average balances include the effect of
unrealized gains or losses on securities held as
available-for-sale. (g) Average balances include FHLB borrowings,
securities sold under agreements to repurchase and other
borrowings. Average Balance Sheet (Dollars in Thousands) The
following table sets forth certain information relating to the
Company's average balance sheet and reflects the average yield on
assets and average cost of liabilities for the periods indicated.
Such yields and costs are derived by dividing income or expense by
the average balance of assets or liabilities, respectively, for the
periods presented. Average balances are calculated using daily
averages. Year ended December 31, 2009 --- Average Interest Avg.
Balance Yield/ Cost ---- ASSETS: ------- Interest-earning assets:
Loans receivable (a) (b) (d) $5,199,829 321,764 6.17%
Mortgage-backed securities (c) 720,683 27,263 3.78% Investment
securities (c) (d) (e) 360,620 22,390 6.21% FHLB stock 63,162 -
0.00% Other interest-earning deposits 297,228 641 0.21% ------- ---
Total interest-earning assets 6,641,522 372,058 5.59% Noninterest
earning assets (f) 523,038 ------- TOTAL ASSETS $7,164,560
========== LIABILITIES AND SHAREHOLDERS' EQUITY:
----------------------------- Interest-bearing liabilities: Savings
accounts $850,707 6,501 0.76% Interest-bearing demand accounts
739,102 2,536 0.34% Money market accounts 752,166 8,471 1.13%
Certificate accounts 2,546,867 77,886 3.06% Borrowed funds (g)
936,571 34,578 3.69% Junior subordinated debentures 105,672 5,834
5.45% ------- ----- Total interest-bearing liabilities 5,931,085
135,806 2.29% Noninterest bearing liabilities 540,536 ------- Total
liabilities 6,471,621 Shareholders' equity 692,939 ------- TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $7,164,560 ========== Net
interest income/ Interest rate spread 236,252 3.30% Net
interest-earning assets/ Net interest margin $710,437 3.56% Ratio
of interest-earning assets to interest-bearing liabilities 1.12X
---------------------------- ----- Year ended December 31, 2008 ---
Average Interest Avg. Balance Yield/ Cost ---- ASSETS: -------
Interest-earning assets: Loans receivable (a) (b) (d) 5,016,694
328,687 6.50% Mortgage-backed securities (c) 732,281 34,694 4.74%
Investment securities (c) (d) (e) 478,933 29,250 6.11% FHLB stock
48,167 1,428 2.96% Other interest-earning deposits 104,895 2,756
2.59% ------- ----- Total interest-earning assets 6,380,970 396,815
6.18% Noninterest earning assets (f) 488,579 ------- TOTAL ASSETS
6,869,549 ========= LIABILITIES AND SHAREHOLDERS' EQUITY:
----------------------------- Interest-bearing liabilities: Savings
accounts 778,341 9,159 1.18% Interest-bearing demand accounts
732,097 6,434 0.88% Money market accounts 720,713 14,726 2.04%
Certificate accounts 2,716,815 106,742 3.93% Borrowed funds (g)
718,657 26,893 3.74% Junior subordinated debentures 108,287 5,339
4.86% ------- ----- Total interest-bearing liabilities 5,774,910
169,293 2.93% Noninterest bearing liabilities 473,410 ------- Total
liabilities 6,248,320 Shareholders' equity 621,229 ------- TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY 6,869,549 ========= Net
interest income/ Interest rate spread 227,522 3.25% Net
interest-earning assets/ Net interest margin 606,060 3.57% Ratio of
interest-earning assets to interest-bearing liabilities 1.10X
---------------------------- ----- (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 Fannie Mae and
Freddie Mac stock. (f) Average balances include the effect of
unrealized gains or losses on securities held as
available-for-sale. (g) Average balances include FHLB borrowings,
securities sold under agreements to repurchase and other
borrowings. DATASOURCE: Northwest Bancshares, Inc. CONTACT: William
J. Wagner, President and Chief Executive Officer, +1-814-726-2140,
or William W. Harvey, Jr., Executive Vice President and Chief
Financial Officer, +1-814-726-2140, both of Northwest Bancshares,
Inc. Web Site: http://www.northwestsavingsbank.com/
Copyright