WARREN, Pa., April 20, 2015 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2015 of $16.2 million, or $0.18 per diluted share. This represents an increase of $1.6 million, or 10.7%, compared to the same quarter last year when net income was $14.6 million, or $0.16 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended March 31, 2015 were 6.17% and 0.83% compared to 5.15% and 0.75% for the same quarter last year.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.14 per share payable on May 14, 2015, to shareholders of record as of April 30, 2015. This represents the 82nd consecutive quarter in which the Company has paid a cash dividend.
In making this announcement, William J. Wagner, President and CEO, noted, "The first quarter of 2015 was highlighted by solid loan growth of $75 million, further improvement in asset quality and continued consistency in our interest rate spread and margin. We also continued to demonstrate success in increasing checking and fee-based products while controlling operating costs through enhanced efficiency. The management of capital remains a focal point, and we were pleased this quarter to utilize excess capital by paying an attractive regular dividend and repurchasing 318,000 of our shares at an average share price of $11.92."
Net interest income increased by $732,000, or 1.2%, to $61.6 million for the quarter ended March 31, 2015, from $60.8 million for the quarter ended March 31, 2014. This increase was due primarily to an increase in interest income on loans receivable of $1.4 million and a decrease in interest paid on deposit accounts of $724,000. Partially offsetting these factors was a decrease in interest received on investment securities of $901,000 and an increase in interest paid on borrowed funds of $419,000. The favorable changes from the previous year were due primarily to loan growth of more than $200.0 million and continued success in increasing low-cost deposits.
The provision for loan losses decreased by $6.6 million, or 88.0%, to $900,000 for the quarter ended March 31, 2015, from $7.5 million for the quarter ended March 31, 2014. The minimal provision for loan losses reflects continued improvements in asset quality as loans 90 days or more delinquent decreased $18.5 million, or 36.0%, compared to a year ago while total nonaccrual loans decreased $35.8 million, or 32.8%.
Noninterest income decreased by $3.7 million, or 18.5%, to $16.0 million for the quarter ended March 31, 2015, from $19.7 million for the quarter ended March 31, 2014. This decrease is due primarily to decreases in gain on sale of investments of $3.3 million and an increase in loss on real estate owned of $911,000. The prior year gain on sale of investments resulted from the sale of $6.1 million of bank stocks while the loss on real estate owned was due primarily to the write-down of one commercial property. Partially offsetting these factors was an increase in other operating income of $788,000, due primarily to a special dividend of $1.0 million from the Federal Home Loan Bank of Pittsburgh.
Noninterest expense increased by $548,000, or 1.0%, to $53.7 million for the quarter ended March 31, 2015, from $53.2 million for the quarter ended March 31, 2014. Processing expenses increased by $616,000 due primarily to amortization of software upgrades made during the past two years. Marketing expenses increased by $339,000 due primarily to the timing of various campaign costs. Additionally, expenses totaling $347,000 were incurred during the quarter ended March 31, 2015 which related to the proposed acquisition of LNB Bancorp, Inc.
On December 15, 2014, the Company announced that it had entered into a definitive merger agreement to acquire LNB Bancorp, Inc. and its wholly-owned subsidiary, Lorain National Bank which operates 20 community banking offices in northeast Ohio and, as of December 31, 2014, had assets of approximately $1.2 billion. The acquisition is expected to close during the third quarter of 2015.
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 161 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.
Important Additional Information and Where to Find It
In connection with the proposed acquisition of LNB Bancorp, Inc. on March 9, 2015 the Company filed a Registration Statement on Form S-4 with the SEC that includes a preliminary Proxy Statement of LNB Bancorp, Inc. and a preliminary Prospectus of Northwest Bancshares, as well as other relevant documents concerning the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. SHAREHOLDERS OF LNB BANCORP ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
A free copy of the Proxy Statement/Prospectus, as well as other filings containing information about Northwest Bancshares and LNB Bancorp, may be obtained at the SEC's Internet site (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from Northwest Bancshares at www.northwestsavingsbank.com under the heading "Investor Relations" and then under "SEC Filings" or from LNB Bancorp by accessing LNB Bancorp's website at www.4lnb.com under the heading "Investor Relations" and then under "SEC Filings." Copies of the Proxy Statement/Prospectus can also be obtained, free of charge, by directing a request to Northwest Bancshares, Inc., 100 Liberty Street, Warren, Pennsylvania 16365, Attention: Investor Relations, Telephone: (814) 726-2140 or to LNB Bancorp, Inc., 457 Broadway, Lorain, Ohio 44052, Attention: Investor Relations, Telephone: (440) 244-7317.
LNB Bancorp and Northwest Bancshares and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of LNB Bancorp in connection with the proposed merger. Information about the directors and executive officers of LNB Bancorp and their ownership of LNB Bancorp common stock is set forth in the proxy statement for LNB Bancorp's 2014 annual meeting of shareholders, as filed with the SEC on Schedule 14A on March 11, 2014. Information about the directors and executive officers of Northwest Bancshares is set forth in the proxy statement for Northwest Bancshares' 2015 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 4, 2015. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the proposed merger. Free copies of this document may be obtained as described in the preceding paragraph.
Northwest Bancshares, Inc. and Subsidiaries | ||||||||||||
Consolidated Statements of Financial Condition | ||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||
March 31, | December 31, | |||||||||||
Assets | 2015 | 2014 | ||||||||||
Cash and cash equivalents | $ 83,970 | 87,401 | ||||||||||
Interest-earning deposits in other financial institutions | 212,496 | 152,671 | ||||||||||
Federal funds sold and other short-term investments | 635 | 634 | ||||||||||
Marketable securities available-for-sale (amortized cost of $906,028 and $906,702) | 916,423 | 912,371 | ||||||||||
Marketable securities held-to-maturity (fair value of $92,989 and $106,292) | 90,825 | 103,695 | ||||||||||
Total cash, interest-earning deposits and marketable securities | 1,304,349 | 1,256,772 | ||||||||||
Residential mortgage loans | 2,543,870 | 2,521,456 | ||||||||||
Home equity loans | 1,055,739 | 1,066,131 | ||||||||||
Other consumer loans | 239,956 | 242,744 | ||||||||||
Commercial real estate loans | 1,856,574 | 1,801,184 | ||||||||||
Commercial loans | 368,725 | 358,376 | ||||||||||
Total loans receivable | 6,064,864 | 5,989,891 | ||||||||||
Allowance for loan losses | (67,298) | (67,518) | ||||||||||
Loans receivable, net | 5,997,566 | 5,922,373 | ||||||||||
Federal Home Loan Bank stock, at cost | 36,292 | 33,293 | ||||||||||
Accrued interest receivable | 19,753 | 18,623 | ||||||||||
Real estate owned, net | 15,346 | 16,759 | ||||||||||
Premises and Equipment, net | 142,481 | 143,909 | ||||||||||
Bank owned life insurance | 145,275 | 144,362 | ||||||||||
Goodwill | 175,498 | 175,323 | ||||||||||
Other intangible assets | 3,027 | 3,033 | ||||||||||
Other assets | 50,772 | 60,586 | ||||||||||
Total assets | $ 7,890,359 | 7,775,033 | ||||||||||
Liabilities and Shareholders' equity | ||||||||||||
Liabilities | ||||||||||||
Noninterest-bearing demand deposits | $ 944,937 | 891,248 | ||||||||||
Interest-bearing demand deposits | 898,945 | 874,623 | ||||||||||
Money market deposit accounts | 1,151,971 | 1,179,070 | ||||||||||
Savings deposits | 1,257,446 | 1,209,287 | ||||||||||
Time deposits | 1,428,768 | 1,478,314 | ||||||||||
Total deposits | 5,682,067 | 5,632,542 | ||||||||||
Borrowed funds | 943,842 | 888,109 | ||||||||||
Advances by borrowers for taxes and insurance | 34,998 | 30,507 | ||||||||||
Accrued interest payable | 1,336 | 936 | ||||||||||
Other liabilities | 57,506 | 57,198 | ||||||||||
Junior subordinated debentures | 103,094 | 103,094 | ||||||||||
Total liabilities | 6,822,843 | 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, 94,553,350 shares | ||||||||||||
and 94,721,453 shares issued and outstanding, respectively | 946 | 947 | ||||||||||
Paid-in-capital | 624,584 | 626,134 | ||||||||||
Retained earnings | 484,774 | 481,577 | ||||||||||
Unallocated common stock of Employee Stock Ownership Plan | (21,565) | (21,641) | ||||||||||
Accumulated other comprehensive loss | (21,223) | (24,370) | ||||||||||
Total shareholders' equity | 1,067,516 | 1,062,647 | ||||||||||
Total liabilities and shareholders' equity | $ 7,890,359 | 7,775,033 | ||||||||||
Equity to assets | 13.53% | 13.67% | ||||||||||
Tangible common equity to assets | 11.53% | 11.64% | ||||||||||
Book value per share | $ 11.29 | 11.22 | ||||||||||
Tangible book value per share | $ 9.40 | 9.34 | ||||||||||
Closing market price per share | $ 11.85 | 12.53 | ||||||||||
Full time equivalent employees | 2,041 | 2,042 | ||||||||||
Number of banking offices | 161 | 162 | ||||||||||
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||
Consolidated Statements of Income | |||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
Quarter ended | |||||||||||
March 31, | December 31, | ||||||||||
2015 | 2014 | 2014 | |||||||||
Interest income: | |||||||||||
Loans receivable | $ 70,711 | 69,322 | 71,182 | ||||||||
Mortgage-backed securities | 2,234 | 2,793 | 2,357 | ||||||||
Taxable investment securities | 1,045 | 1,080 | 1,032 | ||||||||
Tax-free investment securities | 1,348 | 1,655 | 1,467 | ||||||||
Interest-earning deposits | 139 | 200 | 164 | ||||||||
Total interest income | 75,477 | 75,050 | 76,202 | ||||||||
Interest expense: | |||||||||||
Deposits | 5,766 | 6,490 | 6,106 | ||||||||
Borrowed funds | 8,133 | 7,714 | 7,876 | ||||||||
Total interest expense | 13,899 | 14,204 | 13,982 | ||||||||
Net interest income | 61,578 | 60,846 | 62,220 | ||||||||
Provision for loan losses | 900 | 7,485 | 1,078 | ||||||||
Net interest income after provision for loan losses | 60,678 | 53,361 | 61,142 | ||||||||
Noninterest income: | |||||||||||
Gain on sale of investments | 95 | 3,348 | 381 | ||||||||
Service charges and fees | 8,659 | 8,408 | 9,268 | ||||||||
Trust and other financial services income | 2,776 | 3,047 | 3,291 | ||||||||
Insurance commission income | 2,428 | 2,564 | 2,181 | ||||||||
Loss on real estate owned, net | (1,046) | (135) | (30) | ||||||||
Income from bank owned life insurance | 913 | 1,001 | 1,057 | ||||||||
Mortgage banking income | 240 | 249 | 269 | ||||||||
Other operating income | 1,963 | 1,175 | 1,188 | ||||||||
Total noninterest income | 16,028 | 19,657 | 17,605 | ||||||||
Noninterest expense: | |||||||||||
Compensation and employee benefits | 27,895 | 27,972 | 31,405 | ||||||||
Premises and occupancy costs | 6,267 | 6,557 | 5,516 | ||||||||
Office operations | 3,680 | 3,757 | 3,677 | ||||||||
Processing expenses | 7,205 | 6,589 | 6,720 | ||||||||
Marketing expenses | 1,976 | 1,637 | 1,434 | ||||||||
Federal deposit insurance premiums | 1,347 | 1,297 | 1,316 | ||||||||
Professional services | 1,792 | 2,062 | 1,970 | ||||||||
Amortization of intangible assets | 268 | 331 | 331 | ||||||||
Real estate owned expense | 692 | 639 | 406 | ||||||||
Acquisition expense | 347 | - | 394 | ||||||||
Other expense | 2,242 | 2,322 | 2,043 | ||||||||
Total noninterest expense | 53,711 | 53,163 | 55,212 | ||||||||
Income before income taxes | 22,995 | 19,855 | 23,535 | ||||||||
Income tax expense | 6,825 | 5,244 | 6,190 | ||||||||
Net income | $ 16,170 | 14,611 | 17,345 | ||||||||
Basic earnings per share | $ 0.18 | 0.16 | 0.19 | ||||||||
Diluted earnings per share | $ 0.18 | 0.16 | 0.19 | ||||||||
Annualized return on average equity | 6.17% | 5.15% | 6.42% | ||||||||
Annualized return on average assets | 0.83% | 0.75% | 0.88% | ||||||||
Basic common shares outstanding | 91,634,064 | 91,154,998 | 91,741,487 | ||||||||
Diluted common shares outstanding | 91,902,071 | 92,353,312 | 92,103,069 | ||||||||
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||
Asset quality | |||||||||||
(Dollars in thousands) | |||||||||||
March 31, 2015 | December 31, | March 31, 2014 | December 31, | ||||||||
Nonaccrual loans current: | |||||||||||
Residential mortgage loans | $ 1,322 | 1,169 | 1,064 | 1,361 | |||||||
Home equity loans | 1,910 | 1,527 | 1,771 | 835 | |||||||
Other consumer loans | 114 | 88 | 136 | 98 | |||||||
Commercial real estate loans | 18,465 | 23,703 | 26,564 | 17,866 | |||||||
Commercial loans | 9,429 | 5,917 | 19,603 | 13,357 | |||||||
Total nonaccrual loans current | $ 31,240 | 32,404 | 49,138 | 33,517 | |||||||
Nonaccrual loans delinquent 30 days to 59 days: | |||||||||||
Residential mortgage loans | $ 951 | 1,545 | 741 | 427 | |||||||
Home equity loans | 380 | 712 | 155 | 404 | |||||||
Other consumer loans | 92 | 48 | 36 | 15 | |||||||
Commercial real estate loans | 3,907 | 1,128 | 4,118 | 3,468 | |||||||
Commercial loans | 144 | 9 | 5 | 7,650 | |||||||
Total nonaccrual loans delinquent 30 days to 59 days | $ 5,474 | 3,442 | 5,055 | 11,964 | |||||||
Nonaccrual loans delinquent 60 days to 89 days: | |||||||||||
Residential mortgage loans | $ 1,892 | 784 | 1,914 | 864 | |||||||
Home equity loans | 507 | 724 | 485 | 280 | |||||||
Other consumer loans | 129 | 234 | 99 | 87 | |||||||
Commercial real estate loans | 1,045 | 763 | 902 | 2,036 | |||||||
Commercial loans | 107 | 131 | 95 | 716 | |||||||
Total nonaccrual loans delinquent 60 days to 89 days | $ 3,680 | 2,636 | 3,495 | 3,983 | |||||||
Nonaccrual loans delinquent 90 days or more: | |||||||||||
Residential mortgage loans | $ 15,068 | 17,696 | 20,564 | 24,625 | |||||||
Home equity loans | 5,646 | 6,606 | 8,420 | 8,344 | |||||||
Other consumer loans | 2,045 | 2,450 | 1,818 | 2,057 | |||||||
Commercial real estate loans | 8,233 | 10,215 | 16,098 | 18,433 | |||||||
Commercial loans | 1,921 | 4,359 | 4,494 | 4,298 | |||||||
Total nonaccrual loans delinquent 90 days or more | $ 32,913 | 41,326 | 51,394 | 57,757 | |||||||
Total nonaccrual loans | $ 73,307 | 79,808 | 109,082 | 107,221 | |||||||
March 31, | December 31, | March 31, | December 31, | ||||||||
2015 | 2014 | 2014 | 2013 | ||||||||
Nonaccrual loans | $ 73,307 | 79,808 | 109,082 | 107,221 | |||||||
Loans 90 days past maturity and still accruing | 310 | 235 | 709 | 690 | |||||||
Nonperforming loans | 73,617 | 80,043 | 109,791 | 107,911 | |||||||
Real estate owned, net | 15,346 | 16,759 | 16,692 | 18,203 | |||||||
Nonperforming assets | $ 88,963 | 96,802 | 126,483 | 126,114 | |||||||
Nonaccrual troubled debt restructuring * | $ 19,843 | 24,459 | 34,268 | 28,889 | |||||||
Accruing troubled debt restructuring | 40,802 | 37,329 | 40,243 | 50,277 | |||||||
Total troubled debt restructuring | $ 60,645 | 61,788 | 74,511 | 79,166 | |||||||
Nonperforming loans to total loans | 1.21% | 1.34% | 1.88% | 1.86% | |||||||
Nonperforming assets to total assets | 1.13% | 1.25% | 1.59% | 1.60% | |||||||
Allowance for loan losses to total loans | 1.11% | 1.13% | 1.30% | 1.23% | |||||||
Allowance for loan losses to nonperforming loans | 91.42% | 84.35% | 69.44% | 66.12% | |||||||
* Amounts included in nonperforming loans above. | |||||||||||
Northwest Bancshares, Inc. and Subsidiaries | ||||||||||||||||||
Delinquency | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Loan delinquency schedule | ||||||||||||||||||
(Number of loans and dollar amount of loans) | ||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||||
2015 | * | 2014 | * | 2014 | * | 2013 | * | |||||||||||
Loans delinquent 30 days to 59 days: | ||||||||||||||||||
Residential mortgage loans | 336 | $ 25,586 | 1.0% | 377 | $ 27,443 | 1.1% | 352 | $ 26,874 | 1.1% | 374 | $ 27,486 | 1.1% | ||||||
Home equity loans | 128 | 3,737 | 0.4% | 161 | 5,752 | 0.5% | 172 | 5,449 | 0.5% | 213 | 6,946 | 0.6% | ||||||
Consumer loans | 912 | 4,374 | 1.8% | 1,193 | 5,572 | 2.3% | 749 | 3,412 | 1.5% | 1,010 | 4,515 | 2.0% | ||||||
Commercial real estate loans | 50 | 5,497 | 0.3% | 56 | 4,956 | 0.3% | 84 | 26,518 | 1.6% | 73 | 8,449 | 0.5% | ||||||
Commercial loans | 36 | 1,480 | 0.4% | 26 | 2,262 | 0.6% | 41 | 1,375 | 0.3% | 34 | 9,243 | 2.3% | ||||||
Total loans delinquent 30 days to 59 days | 1,462 | $ 40,674 | 0.7% | 1,813 | $ 45,985 | 0.8% | 1,398 | $ 63,628 | 1.1% | 1,704 | $ 56,639 | 1.0% | ||||||
Loans delinquent 60 days to 89 days: | ||||||||||||||||||
Residential mortgage loans | 40 | $ 3,397 | 0.1% | 100 | $ 6,970 | 0.3% | 46 | $ 3,674 | 0.1% | 103 | $ 7,568 | 0.3% | ||||||
Home equity loans | 34 | 1,404 | 0.1% | 49 | 1,672 | 0.2% | 42 | 1,437 | 0.1% | 67 | 2,243 | 0.2% | ||||||
Consumer loans | 352 | 1,515 | 0.6% | 525 | 2,435 | 1.0% | 330 | 1,289 | 0.6% | 507 | 1,866 | 0.8% | ||||||
Commercial real estate loans | 21 | 2,351 | 0.1% | 21 | 2,038 | 0.1% | 33 | 2,570 | 0.2% | 35 | 3,968 | 0.2% | ||||||
Commercial loans | 5 | 136 | 0.0% | 4 | 209 | 0.1% | 9 | 473 | 0.1% | 16 | 1,555 | 0.4% | ||||||
Total loans delinquent 60 days to 89 days | 452 | $ 8,803 | 0.1% | 699 | $ 13,324 | 0.2% | 460 | $ 9,443 | 0.2% | 728 | $ 17,200 | 0.3% | ||||||
Loans delinquent 90 days or more: | ||||||||||||||||||
Residential mortgage loans | 193 | $ 15,068 | 0.6% | 225 | $ 17,696 | 0.7% | 236 | $ 20,564 | 0.8% | 273 | $ 24,625 | 1.0% | ||||||
Home equity loans | 123 | 5,646 | 0.5% | 139 | 6,606 | 0.6% | 176 | 8,420 | 0.8% | 171 | 8,344 | 0.8% | ||||||
Consumer loans | 440 | 2,045 | 0.9% | 539 | 2,450 | 1.0% | 391 | 1,818 | 0.8% | 470 | 2,057 | 0.9% | ||||||
Commercial real estate loans | 84 | 8,233 | 0.4% | 102 | 10,215 | 0.6% | 116 | 16,098 | 1.0% | 124 | 18,433 | 1.1% | ||||||
Commercial loans | 16 | 1,921 | 0.5% | 25 | 4,359 | 1.2% | 33 | 4,494 | 1.1% | 31 | 4,298 | 1.1% | ||||||
Total loans delinquent 90 days or more | 856 | $ 32,913 | 0.5% | 1,030 | $ 41,326 | 0.7% | 952 | $ 51,394 | 0.9% | 1,069 | $ 57,757 | 1.0% | ||||||
Total loans delinquent | 2,770 | $ 82,390 | 1.4% | 3,542 | $ 100,635 | 1.7% | 2,810 | $ 124,465 | 2.1% | 3,501 | $ 131,596 | 2.3% | ||||||
* - Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding. | ||||||||||||||||||
Northwest Bancshares, Inc. and Subsidiaries | ||||||||||||||||
Loans by credit quality indicators as of March 31, 2015 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Recorded | ||||||||||||||||
investment | ||||||||||||||||
Special | in loans | |||||||||||||||
Pass | mention | Substandard | Doubtful | Loss | receivable | |||||||||||
Personal Banking: | ||||||||||||||||
Residential mortgage loans | $ 2,531,595 | - | 10,851 | - | 1,424 | 2,543,870 | ||||||||||
Home equity loans | 1,050,092 | - | 5,647 | - | - | 1,055,739 | ||||||||||
Other consumer loans | 238,381 | - | 1,575 | - | - | 239,956 | ||||||||||
Total Personal Banking | 3,820,068 | - | 18,073 | - | 1,424 | 3,839,565 | ||||||||||
Business Banking: | ||||||||||||||||
Commercial real estate loans | 1,671,331 | 43,874 | 141,369 | - | - | 1,856,574 | ||||||||||
Commercial loans | 305,632 | 22,651 | 31,243 | 9,199 | - | 368,725 | ||||||||||
Total Business Banking | 1,976,963 | 66,525 | 172,612 | 9,199 | - | 2,225,299 | ||||||||||
$ 5,797,031 | 66,525 | 190,685 | 9,199 | 1,424 | 6,064,864 | |||||||||||
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 | |||||||||||
Allowance for loan losses | |||||||||||
(Dollars in thousands) | |||||||||||
Quarter ended | Year ended | ||||||||||
March 31, | December 31, | ||||||||||
2015 | 2014 | 2014 | 2013 | ||||||||
Allowance for loan losses | |||||||||||
Beginning balance | $ 67,518 | 71,348 | 71,348 | 73,219 | |||||||
Provision | 900 | 7,485 | 20,314 | 18,519 | |||||||
Charge-offs residential mortgage | (335) | (459) | (2,181) | (2,501) | |||||||
Charge-offs home equity | (342) | (372) | (1,783) | (2,239) | |||||||
Charge-offs other consumer | (1,940) | (1,716) | (6,423) | (6,055) | |||||||
Charge-offs commercial real estate | (1,113) | (932) | (8,422) | (10,042) | |||||||
Charge-offs commercial | (724) | (770) | (11,936) | (5,007) | |||||||
Recoveries | 3,334 | 1,650 | 6,601 | 5,454 | |||||||
Ending balance | $ 67,298 | 76,234 | 67,518 | 71,348 | |||||||
Net charge-offs to average loans, annualized | 0.07% | 0.18% | 0.41% | 0.36% | |||||||
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 March 31, | |||||||
2015 | 2014 | ||||||
Average | Interest | Avg. | Average | Interest | Avg. | ||
Balance | Yield/ | Balance | Yield/ | ||||
Cost (g) | Cost (g) | ||||||
Assets: | |||||||
Interest-earning assets: | |||||||
Loans receivable (a) (b) (d) | $ 6,019,250 | 71,182 | 4.80% | $ 5,823,527 | 69,865 | 4.87% | |
Mortgage-backed securities (c) | 506,778 | 2,234 | 1.76% | 621,146 | 2,793 | 1.80% | |
Investment securities (c) (d) | 486,078 | 3,119 | 2.57% | 507,354 | 3,627 | 2.86% | |
FHLB stock (h) | 36,139 | 363 | 4.07% | 43,715 | 275 | 2.55% | |
Other interest-earning deposits | 246,296 | 139 | 0.23% | 351,615 | 200 | 0.23% | |
Total interest-earning assets | 7,294,541 | 77,037 | 4.28% | 7,347,357 | 76,760 | 4.23% | |
Noninterest earning assets (e) | 595,425 | 583,122 | |||||
Total assets | $ 7,889,966 | $ 7,930,479 | |||||
Liabilities and shareholders' equity: | |||||||
Interest-bearing liabilities: | |||||||
Savings deposits | $ 1,231,745 | 813 | 0.27% | $ 1,208,349 | 804 | 0.27% | |
Interest-bearing demand deposits | 878,230 | 131 | 0.06% | 851,723 | 139 | 0.07% | |
Money market deposit accounts | 1,165,159 | 765 | 0.27% | 1,173,957 | 782 | 0.27% | |
Time deposits | 1,452,476 | 4,057 | 1.13% | 1,642,224 | 4,765 | 1.18% | |
Borrowed funds (f) | 960,812 | 6,975 | 2.94% | 881,187 | 6,557 | 3.02% | |
Junior subordinated debentures | 103,094 | 1,158 | 4.49% | 103,094 | 1,157 | 4.49% | |
Total interest-bearing liabilities | 5,791,516 | 13,899 | 0.97% | 5,860,534 | 14,204 | 0.98% | |
Noninterest-bearing demand deposits | 914,025 | 815,117 | |||||
Noninterest bearing liabilities | 121,121 | 105,027 | |||||
Total liabilities | 6,826,662 | 6,780,678 | |||||
Shareholders' equity | 1,063,304 | 1,149,801 | |||||
Total liabilities and shareholders' equity | $ 7,889,966 | $ 7,930,479 | |||||
Net interest income/ Interest rate spread | 63,138 | 3.31% | 62,556 | 3.25% | |||
Net interest-earning assets/ Net interest margin | $ 1,503,025 | 3.51% | $ 1,486,823 | 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. | |||||||
(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 - 4.76% and 4.83%, respectively, Investment securities - 1.97% | |||||||
and 2.16%, respectively, Interest-earning assets - 4.21% and 4.15%, respectively. GAAP basis net interest rate spreads were 3.24% and | |||||||
3.17%, respectively, and GAAP basis net interest margins were 3.44% and 3.37%, respectively. | |||||||
(h) Excludes a $1.0 million special dividend paid in February 2015. | |||||||
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 | ||||||
March 31, 2015 | December 31, 2014 | ||||||
Average | Interest | Avg. | Average | Interest | Avg. | ||
Balance | Yield/ | Balance | Yield/ | ||||
Cost (g) | Cost (g) | ||||||
Assets: | |||||||
Interest-earning assets: | |||||||
Loans receivable (a) (b) (d) | $ 6,019,250 | 71,182 | 4.80% | $ 5,961,303 | 71,669 | 4.77% | |
Mortgage-backed securities (c) | 506,778 | 2,234 | 1.76% | 536,990 | 2,357 | 1.76% | |
Investment securities (c) (d) | 486,078 | 3,119 | 2.57% | 495,554 | 3,289 | 2.65% | |
FHLB stock (h) | 36,139 | 363 | 4.07% | 36,315 | 383 | 4.22% | |
Other interest-earning deposits | 246,296 | 139 | 0.23% | 251,229 | 164 | 0.26% | |
Total interest-earning assets | 7,294,541 | 77,037 | 4.28% | 7,281,391 | 77,862 | 4.28% | |
Noninterest earning assets (e) | 595,425 | 546,946 | |||||
Total assets | $ 7,889,966 | $ 7,828,337 | |||||
Liabilities and shareholders' equity: | |||||||
Interest-bearing liabilities: | |||||||
Savings deposits | $ 1,231,745 | 813 | 0.27% | $ 1,209,117 | 828 | 0.27% | |
Interest-bearing demand deposits | 878,230 | 131 | 0.06% | 884,542 | 147 | 0.07% | |
Money market deposit accounts | 1,165,159 | 765 | 0.27% | 1,182,041 | 797 | 0.27% | |
Time deposits | 1,452,476 | 4,057 | 1.13% | 1,506,526 | 4,334 | 1.14% | |
Borrowed funds (f) | 960,812 | 6,975 | 2.94% | 894,509 | 6,694 | 2.97% | |
Junior subordinated debentures | 103,094 | 1,158 | 4.49% | 103,094 | 1,182 | 4.49% | |
Total interest-bearing liabilities | 5,791,516 | 13,899 | 0.97% | 5,779,829 | 13,982 | 0.96% | |
Noninterest-bearing demand deposits | 914,025 | 897,082 | |||||
Noninterest bearing liabilities | 121,121 | 79,850 | |||||
Total liabilities | 6,826,662 | 6,756,761 | |||||
Shareholders' equity | 1,063,304 | 1,071,576 | |||||
Total liabilities and shareholders' equity | $ 7,889,966 | $ 7,828,337 | |||||
Net interest income/ Interest rate spread | 63,138 | 3.31% | 63,880 | 3.32% | |||
Net interest-earning assets/ Net interest margin | $ 1,503,025 | 3.51% | $ 1,501,562 | 3.51% | |||
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. | |||||||
(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 - 4.76% and 4.74%, respectively, Investment securities -1.97% | |||||||
and 2.02%, respectively, Interest-earning assets - 4.21% and 4.21%, respectively. GAAP basis net interest rate spreads were 3.24% and | |||||||
3.25%, respectively, and GAAP basis net interest margins were 3.44% and 3.44%, respectively. | |||||||
(h) Excludes a $1.0 million special dividend paid in February 2015. | |||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-first-quarter-2015-earnings-and-quarterly-dividend-300067925.html
SOURCE Northwest Savings Bank
