WARREN, Pa., July 16, 2015 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended June 30, 2015 of $15.3 million, or $0.17 per diluted share. This represents an increase of $2.6 million, or 20.8%, compared to the same quarter last year when net income was $12.7 million, or $0.14 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended June 30, 2015 were 5.77% and 0.78% compared to 4.77% and 0.64% 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 August 13, 2015, to shareholders of record as of July 30, 2015. This represents the 83rd consecutive quarter in which the Company has paid a cash dividend.
In making this announcement, William J. Wagner, President and CEO, noted, "The continued improvement in asset quality was the primary driver for earnings improvement for this quarter versus a year ago. The provision for loan losses was $7.2 million less this quarter than in 2014. All other components of income and expense are relatively consistent with the previous year. We continue to exhibit success in growing our loan portfolio, which increased by $60 million during the quarter and $135 million year-to-date. Unfortunately, charge-offs were elevated this quarter by two commercial loans, a $6.1 million loan to a seed wholesaler and a $2.0 million loan to a hotel operator. These charge-offs did not impact quarterly earnings as reserves had been provided for in earlier periods. Finally, we remain keenly focused on the integration of LNB Bancorp, Inc. which is anticipated to close on August 14, 2015, and will assist in the continued deployment of our excess capital."
Net interest income decreased by $373,000, or 0.6%, to $61.7 million for the quarter ended June 30, 2015, from $62.1 million for the quarter ended June 30, 2014 due primarily to a decrease in interest on investment securities of $948,000 which was partially offset by a decrease in interest paid on deposit accounts of $730,000. The decrease in interest on investment securities was a result of higher rate municipal securities being called or maturing and an overall decrease in investment balances as excess liquidity was used to fund loan growth. The decrease in interest paid on deposits reflects the continued shift of customer deposits from time accounts to non-maturity deposits.
The provision for loan losses decreased by $7.2 million, or 87.3%, to $1.1 million for the quarter ended June 30, 2015, from $8.3 million for the quarter ended June 30, 2014 as overall asset quality continued to improve. Loans 90 days or more delinquent decreased by $13.8 million, or 26.9%, to $37.5 million at June 30, 2015 from $51.3 million at June 30, 2014, while total nonaccrual loans decreased by $38.8 million, or 40.1%, to $58.0 at June 30, 2015 from $96.8 million last year.
Noninterest income decreased by $124,000, or 0.7%, to $17.0 million for the quarter ended June 30, 2015, from $17.1 million for the quarter ended June 30, 2014. This decrease is due to a decrease in other operating income of $471,000, or 27.9%, due primarily to the timing of FHLB dividend payments in 2014.
Noninterest expense increased by $1.3 million, or 2.5%, to $55.1 million for the quarter ended June 30, 2015, from $53.8 million for the quarter ended June 30, 2014. Processing expenses increased by $753,000 due primarily to recent technology upgrades including the implementation of software that provides Northwest's customers enhanced security for online financial transactions. Additionally, expenses totaling $467,000 were incurred during the quarter ended June 30, 2015 related to the acquisition of LNB Bancorp, Inc. Partially offsetting these increases was a decrease in office operations of $360,000 due primarily to reduced collection costs.
Net income for the six month period ended June 30, 2015 was $31.5 million, or $0.34 per diluted share. This represents an increase of $4.2 million, or 15.4%, compared to the six-month period ended June 30, 2014 when net income was $27.3 million, or $0.30 per diluted share. The annualized returns on average shareholders' equity and average assets for the six month period ended June 30, 2015 were 5.97% and 0.81% compared to 4.97% and 0.69% for the same period last year. Improvement in asset quality was also the primary reason for the increase in net income for the six month period, as the provision for loan losses decreased by $13.8 million, or 87.6%. Partially offsetting this factor was a decrease in the gain on sale of investments of $3.0 million as a portion of the Company's bank stock portfolio was divested in the previous year at a significant gain.
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 21 community banking offices in northeast Ohio and has assets of approximately $1.3 billion. The acquisition has been approved by all regulatory agencies and LNB shareholders and is expected to close on August 14, 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.
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||
Consolidated Statements of Financial Condition | |||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
(Unaudited) | |||||||||||
June 30, | December 31, | ||||||||||
Assets | 2015 | 2014 | |||||||||
Cash and cash equivalents | $ 84,000 | 87,401 | |||||||||
Interest-earning deposits in other financial institutions | 208,311 | 152,671 | |||||||||
Federal funds sold and other short-term investments | 637 | 634 | |||||||||
Marketable securities available-for-sale (amortized cost of $854,147 and $906,702) | 861,157 | 912,371 | |||||||||
Marketable securities held-to-maturity (fair value of $62,957 and $106,292) | 61,464 | 103,695 | |||||||||
Total cash, interest-earning deposits and marketable securities | 1,215,569 | 1,256,772 | |||||||||
Residential mortgage loans | 2,597,170 | 2,521,456 | |||||||||
Home equity loans | 1,055,829 | 1,066,131 | |||||||||
Other consumer loans | 252,391 | 242,744 | |||||||||
Commercial real estate loans | 1,859,743 | 1,801,184 | |||||||||
Commercial loans | 359,524 | 358,376 | |||||||||
Total loans receivable | 6,124,657 | 5,989,891 | |||||||||
Allowance for loan losses | (59,057) | (67,518) | |||||||||
Loans receivable, net | 6,065,600 | 5,922,373 | |||||||||
Federal Home Loan Bank stock, at cost | 38,066 | 33,293 | |||||||||
Accrued interest receivable | 18,682 | 18,623 | |||||||||
Real estate owned, net | 13,864 | 16,759 | |||||||||
Premises and Equipment, net | 142,302 | 143,909 | |||||||||
Bank owned life insurance | 146,283 | 144,362 | |||||||||
Goodwill | 175,498 | 175,323 | |||||||||
Other intangible assets | 2,759 | 3,033 | |||||||||
Other assets | 45,887 | 60,586 | |||||||||
Total assets | $ 7,864,510 | 7,775,033 | |||||||||
Liabilities and Shareholders' equity | |||||||||||
Liabilities | |||||||||||
Noninterest-bearing demand deposits | $ 962,347 | 891,248 | |||||||||
Interest-bearing demand deposits | 928,417 | 874,623 | |||||||||
Money market deposit accounts | 1,143,199 | 1,179,070 | |||||||||
Savings deposits | 1,262,991 | 1,209,287 | |||||||||
Time deposits | 1,397,528 | 1,478,314 | |||||||||
Total deposits | 5,694,482 | 5,632,542 | |||||||||
Borrowed funds | 899,056 | 888,109 | |||||||||
Advances by borrowers for taxes and insurance | 41,763 | 30,507 | |||||||||
Accrued interest payable | 1,302 | 936 | |||||||||
Other liabilities | 56,463 | 57,198 | |||||||||
Junior subordinated debentures | 103,094 | 103,094 | |||||||||
Total liabilities | 6,796,160 | 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, 94,740,749 shares | |||||||||||
and 94,721,453 shares issued and outstanding, respectively | 947 | 947 | |||||||||
Paid-in-capital | 624,321 | 626,134 | |||||||||
Retained earnings | 487,150 | 481,577 | |||||||||
Unallocated common stock of Employee Stock Ownership Plan | (21,485) | (21,641) | |||||||||
Accumulated other comprehensive loss | (22,583) | (24,370) | |||||||||
Total shareholders' equity | 1,068,350 | 1,062,647 | |||||||||
Total liabilities and shareholders' equity | $ 7,864,510 | 7,775,033 | |||||||||
Equity to assets | 13.58% | 13.67% | |||||||||
Tangible common equity to assets | 11.58% | 11.64% | |||||||||
Book value per share | $ 11.28 | 11.22 | |||||||||
Tangible book value per share | $ 9.40 | 9.34 | |||||||||
Closing market price per share | $ 12.82 | 12.53 | |||||||||
Full time equivalent employees | 2,036 | 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 | ||||||||||
June 30, | March 31, | |||||||||
2015 | 2014 | 2015 | ||||||||
Interest income: | ||||||||||
Loans receivable | $ 70,985 | 70,726 | 70,711 | |||||||
Mortgage-backed securities | 2,058 | 2,666 | 2,234 | |||||||
Taxable investment securities | 1,129 | 1,014 | 1,045 | |||||||
Tax-free investment securities | 1,143 | 1,598 | 1,348 | |||||||
Interest-earning deposits | 180 | 286 | 139 | |||||||
Total interest income | 75,495 | 76,290 | 75,477 | |||||||
Interest expense: | ||||||||||
Deposits | 5,691 | 6,421 | 5,766 | |||||||
Borrowed funds | 8,101 | 7,793 | 8,133 | |||||||
Total interest expense | 13,792 | 14,214 | 13,899 | |||||||
Net interest income | 61,703 | 62,076 | 61,578 | |||||||
Provision for loan losses | 1,050 | 8,285 | 900 | |||||||
Net interest income after provision for loan losses | 60,653 | 53,791 | 60,678 | |||||||
Noninterest income: | ||||||||||
Gain on sale of investments | 566 | 349 | 95 | |||||||
Service charges and fees | 9,228 | 9,042 | 8,659 | |||||||
Trust and other financial services income | 3,094 | 3,055 | 2,776 | |||||||
Insurance commission income | 2,210 | 2,237 | 2,428 | |||||||
Loss on real estate owned, net | (541) | (562) | (1,046) | |||||||
Income from bank owned life insurance | 1,008 | 1,050 | 913 | |||||||
Mortgage banking income | 218 | 265 | 240 | |||||||
Other operating income | 1,217 | 1,688 | 1,963 | |||||||
Total noninterest income | 17,000 | 17,124 | 16,028 | |||||||
Noninterest expense: | ||||||||||
Compensation and employee benefits | 28,920 | 28,543 | 27,895 | |||||||
Premises and occupancy costs | 5,899 | 5,740 | 6,267 | |||||||
Office operations | 3,508 | 3,868 | 3,680 | |||||||
Processing expenses | 7,392 | 6,639 | 7,205 | |||||||
Marketing expenses | 3,190 | 2,931 | 1,976 | |||||||
Federal deposit insurance premiums | 1,286 | 1,338 | 1,347 | |||||||
Professional services | 1,652 | 1,775 | 1,792 | |||||||
Amortization of intangible assets | 269 | 331 | 268 | |||||||
Real estate owned expense | 514 | 459 | 692 | |||||||
Acquisition expense | 467 | - | 347 | |||||||
Other expense | 2,038 | 2,182 | 2,242 | |||||||
Total noninterest expense | 55,135 | 53,806 | 53,711 | |||||||
Income before income taxes | 22,518 | 17,109 | 22,995 | |||||||
Income tax expense | 7,213 | 4,435 | 6,825 | |||||||
Net income | $ 15,305 | 12,674 | 16,170 | |||||||
Basic earnings per share | $ 0.17 | 0.14 | 0.18 | |||||||
Diluted earnings per share | $ 0.17 | 0.14 | 0.18 | |||||||
Annualized return on average equity | 5.77% | 4.77% | 6.17% | |||||||
Annualized return on average assets | 0.78% | 0.64% | 0.83% | |||||||
Basic common shares outstanding | 91,538,172 | 91,491,654 | 91,634,064 | |||||||
Diluted common shares outstanding | 91,998,005 | 92,531,142 | 91,902,071 | |||||||
Northwest Bancshares, Inc. and Subsidiaries | ||||||||
Consolidated Statements of Income | ||||||||
(Dollars in thousands, except per share amounts) | ||||||||
Six months ended | ||||||||
June 30, | ||||||||
2015 | 2014 | |||||||
Interest income: | ||||||||
Loans receivable | $ 141,696 | 140,048 | ||||||
Mortgage-backed securities | 4,292 | 5,459 | ||||||
Taxable investment securities | 2,174 | 2,094 | ||||||
Tax-free investment securities | 2,491 | 3,253 | ||||||
Interest-earning deposits | 319 | 486 | ||||||
Total interest income | 150,972 | 151,340 | ||||||
Interest expense: | ||||||||
Deposits | 11,457 | 12,911 | ||||||
Borrowed funds | 16,234 | 15,507 | ||||||
Total interest expense | 27,691 | 28,418 | ||||||
Net interest income | 123,281 | 122,922 | ||||||
Provision for loan losses | 1,950 | 15,770 | ||||||
Net interest income after provision for loan losses | 121,331 | 107,152 | ||||||
Noninterest income: | ||||||||
Gain on sale of investments | 661 | 3,697 | ||||||
Service charges and fees | 17,887 | 17,450 | ||||||
Trust and other financial services income | 5,870 | 6,102 | ||||||
Insurance commission income | 4,638 | 4,801 | ||||||
Loss on real estate owned, net | (1,587) | (697) | ||||||
Income from bank owned life insurance | 1,921 | 2,051 | ||||||
Mortgage banking income | 458 | 514 | ||||||
Other operating income | 3,180 | 2,863 | ||||||
Total noninterest income | 33,028 | 36,781 | ||||||
Noninterest expense: | ||||||||
Compensation and employee benefits | 56,815 | 56,515 | ||||||
Premises and occupancy costs | 12,166 | 12,297 | ||||||
Office operations | 7,188 | 7,625 | ||||||
Processing expenses | 14,597 | 13,228 | ||||||
Marketing expenses | 5,166 | 4,568 | ||||||
Federal deposit insurance premiums | 2,633 | 2,635 | ||||||
Professional services | 3,444 | 3,837 | ||||||
Amortization of intangible assets | 537 | 662 | ||||||
Real estate owned expense | 1,206 | 1,098 | ||||||
Acquisition expense | 814 | - | ||||||
Other expense | 4,280 | 4,504 | ||||||
Total noninterest expense | 108,846 | 106,969 | ||||||
Income before income taxes | 45,513 | 36,964 | ||||||
Income tax expense | 14,038 | 9,679 | ||||||
Net income | $ 31,475 | 27,285 | ||||||
Basic earnings per share | $ 0.34 | 0.30 | ||||||
Diluted earnings per share | $ 0.34 | 0.30 | ||||||
Annualized return on average equity | 5.97% | 4.97% | ||||||
Annualized return on average assets | 0.81% | 0.69% | ||||||
Basic common shares outstanding | 91,585,766 | 91,324,169 | ||||||
Diluted common shares outstanding | 91,950,216 | 92,442,631 | ||||||
Northwest Bancshares, Inc. and Subsidiaries | ||||||||||
Asset quality | ||||||||||
(Dollars in thousands) | ||||||||||
June 30, 2015 | March 31, 2015 | June 30, 2014 | December 31, 2014 | |||||||
Nonaccrual loans current: | ||||||||||
Residential mortgage loans | $ 1,655 | 1,322 | 1,112 | 1,169 | ||||||
Home equity loans | 1,345 | 1,910 | 1,682 | 1,527 | ||||||
Other consumer loans | 171 | 114 | 112 | 88 | ||||||
Commercial real estate loans | 8,596 | 21,768 | 24,935 | 25,657 | ||||||
Commercial loans | 5,096 | 9,429 | 10,494 | 3,963 | ||||||
Total nonaccrual loans current | $ 16,863 | 34,543 | 38,335 | 32,404 | ||||||
Nonaccrual loans delinquent 30 days to 59 days: | ||||||||||
Residential mortgage loans | $ - | 951 | 107 | 1,545 | ||||||
Home equity loans | 49 | 380 | 75 | 712 | ||||||
Other consumer loans | 77 | 92 | 60 | 48 | ||||||
Commercial real estate loans | 867 | 604 | 3,788 | 1,128 | ||||||
Commercial loans | 186 | 144 | 162 | 9 | ||||||
Total nonaccrual loans delinquent 30 days to 59 days | $ 1,179 | 2,171 | 4,192 | 3,442 | ||||||
Nonaccrual loans delinquent 60 days to 89 days: | ||||||||||
Residential mortgage loans | $ 1,197 | 1,892 | 936 | 784 | ||||||
Home equity loans | 472 | 507 | 274 | 724 | ||||||
Other consumer loans | 191 | 129 | 40 | 234 | ||||||
Commercial real estate loans | 504 | 1,045 | 1,584 | 763 | ||||||
Commercial loans | 119 | 107 | 122 | 131 | ||||||
Total nonaccrual loans delinquent 60 days to 89 days | $ 2,483 | 3,680 | 2,956 | 2,636 | ||||||
Nonaccrual loans delinquent 90 days or more: | ||||||||||
Residential mortgage loans | $ 16,125 | 15,068 | 21,994 | 17,696 | ||||||
Home equity loans | 4,616 | 5,646 | 7,810 | 6,606 | ||||||
Other consumer loans | 2,199 | 2,045 | 1,966 | 2,450 | ||||||
Commercial real estate loans | 12,673 | 8,233 | 15,290 | 11,099 | ||||||
Commercial loans | 1,858 | 1,921 | 4,214 | 3,475 | ||||||
Total nonaccrual loans delinquent 90 days or more | $ 37,471 | 32,913 | 51,274 | 41,326 | ||||||
Total nonaccrual loans | $ 57,996 | 73,307 | 96,757 | 79,808 | ||||||
June 30, | March 31, | June 30, | December 31, | |||||||
2015 | 2015 | 2014 | 2014 | |||||||
Nonaccrual loans | $ 57,996 | 73,307 | 96,757 | 79,808 | ||||||
Loans 90 days past maturity and still accruing | 385 | 310 | 271 | 235 | ||||||
Nonperforming loans | 58,381 | 73,617 | 97,028 | 80,043 | ||||||
Real estate owned, net | 13,864 | 15,346 | 14,915 | 16,759 | ||||||
Nonperforming assets | $ 72,245 | 88,963 | 111,943 | 96,802 | ||||||
Nonaccrual troubled debt restructuring * | $ 15,443 | 19,843 | 23,949 | 24,459 | ||||||
Accruing troubled debt restructuring | 40,741 | 40,802 | 39,844 | 37,329 | ||||||
Total troubled debt restructuring | $ 56,184 | 60,645 | 63,793 | 61,788 | ||||||
Nonperforming loans to total loans | 0.95% | 1.21% | 1.65% | 1.34% | ||||||
Nonperforming assets to total assets | 0.92% | 1.13% | 1.42% | 1.25% | ||||||
Allowance for loan losses to total loans | 0.96% | 1.11% | 1.21% | 1.13% | ||||||
Allowance for loan losses to nonperforming loans | 101.16% | 91.42% | 73.63% | 84.35% | ||||||
* Amounts included in nonperforming loans above. | ||||||||||
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||||||
Loans by credit quality indicators as of June 30, 2015 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded | |||||||||||||||
investment | |||||||||||||||
Special | in loans | ||||||||||||||
Pass | mention | Substandard | Doubtful | Loss | receivable | ||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | $ 2,584,438 | - | 11,362 | - | 1,370 | 2,597,170 | |||||||||
Home equity loans | 1,051,213 | - | 4,616 | - | - | 1,055,829 | |||||||||
Other consumer loans | 250,648 | - | 1,743 | - | - | 252,391 | |||||||||
Total Personal Banking | 3,886,299 | - | 17,721 | - | 1,370 | 3,905,390 | |||||||||
Business Banking: | |||||||||||||||
Commercial real estate loans | 1,688,449 | 37,497 | 133,797 | - | - | 1,859,743 | |||||||||
Commercial loans | 301,467 | 19,793 | 38,262 | 2 | - | 359,524 | |||||||||
Total Business Banking | 1,989,916 | 57,290 | 172,059 | 2 | - | 2,219,267 | |||||||||
$ 5,876,215 | 57,290 | 189,780 | 2 | 1,370 | 6,124,657 | ||||||||||
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||||||
Loans by credit quality indicators as of December 31, 2014 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded | |||||||||||||||
investment | |||||||||||||||
Special | in loans | ||||||||||||||
Pass | mention | Substandard | Doubtful | Loss | receivable | ||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | $ 2,507,269 | - | 12,763 | - | 1,424 | 2,521,456 | |||||||||
Home equity loans | 1,059,525 | - | 6,606 | - | - | 1,066,131 | |||||||||
Other consumer loans | 240,947 | - | 1,797 | - | - | 242,744 | |||||||||
Total Personal Banking | 3,807,741 | - | 21,166 | - | 1,424 | 3,830,331 | |||||||||
Business Banking: | |||||||||||||||
Commercial real estate loans | 1,618,269 | 36,908 | 145,502 | 505 | - | 1,801,184 | |||||||||
Commercial loans | 286,234 | 23,690 | 46,280 | 2,172 | - | 358,376 | |||||||||
Total Business Banking | 1,904,503 | 60,598 | 191,782 | 2,677 | - | 2,159,560 | |||||||||
$ 5,712,244 | 60,598 | 212,948 | 2,677 | 1,424 | 5,989,891 | ||||||||||
Northwest Bancshares, Inc. and Subsidiaries | |||||||||||||||||
Delinquency | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Loan delinquency schedule | |||||||||||||||||
(Number of loans and dollar amount of loans) | |||||||||||||||||
June 30, | March 31, | June 30, | December 31, | ||||||||||||||
2015 | * | 2015 | * | 2014 | * | 2014 | * | ||||||||||
Loans delinquent 30 days to 59 days: | |||||||||||||||||
Residential mortgage loans | 64 | $ 3,250 | 0.1% | 336 | $ 25,586 | 1.0% | 71 | $ 3,842 | 0.2% | 377 | $ 27,443 | 1.1% | |||||
Home equity loans | 112 | 3,768 | 0.4% | 128 | 3,737 | 0.4% | 123 | 4,193 | 0.4% | 161 | 5,752 | 0.5% | |||||
Consumer loans | 1,103 | 5,116 | 2.0% | 912 | 4,374 | 1.8% | 953 | 4,355 | 1.9% | 1,193 | 5,572 | 2.3% | |||||
Commercial real estate loans | 39 | 3,788 | 0.2% | 50 | 5,497 | 0.3% | 79 | 8,247 | 0.5% | 56 | 4,956 | 0.3% | |||||
Commercial loans | 21 | 1,363 | 0.4% | 36 | 1,480 | 0.4% | 35 | 1,146 | 0.3% | 26 | 2,262 | 0.6% | |||||
Total loans delinquent 30 days to 59 days | 1,339 | $ 17,285 | 0.3% | 1,462 | $ 40,674 | 0.7% | 1,261 | $ 21,783 | 0.4% | 1,813 | $ 45,985 | 0.8% | |||||
Loans delinquent 60 days to 89 days: | |||||||||||||||||
Residential mortgage loans | 70 | $ 5,815 | 0.2% | 40 | $ 3,397 | 0.1% | 81 | $ 6,024 | 0.2% | 100 | $ 6,970 | 0.3% | |||||
Home equity loans | 39 | 2,090 | 0.2% | 34 | 1,404 | 0.1% | 45 | 1,210 | 0.1% | 49 | 1,672 | 0.2% | |||||
Consumer loans | 442 | 1,767 | 0.7% | 352 | 1,515 | 0.6% | 363 | 1,454 | 0.6% | 525 | 2,435 | 1.0% | |||||
Commercial real estate loans | 30 | 4,919 | 0.3% | 21 | 2,351 | 0.1% | 31 | 2,267 | 0.1% | 21 | 2,038 | 0.1% | |||||
Commercial loans | 7 | 159 | 0.0% | 5 | 136 | 0.0% | 16 | 709 | 0.2% | 4 | 209 | 0.1% | |||||
Total loans delinquent 60 days to 89 days | 588 | $ 14,750 | 0.2% | 452 | $ 8,803 | 0.1% | 536 | $ 11,664 | 0.2% | 699 | $ 13,324 | 0.2% | |||||
Loans delinquent 90 days or more: | |||||||||||||||||
Residential mortgage loans | 203 | $ 16,125 | 0.6% | 193 | $ 15,068 | 0.6% | 251 | $ 21,994 | 0.9% | 225 | $ 17,696 | 0.7% | |||||
Home equity loans | 104 | 4,616 | 0.4% | 123 | 5,646 | 0.5% | 168 | 7,810 | 0.7% | 139 | 6,606 | 0.6% | |||||
Consumer loans | 440 | 2,199 | 0.9% | 440 | 2,045 | 0.9% | 412 | 1,966 | 0.8% | 539 | 2,450 | 1.0% | |||||
Commercial real estate loans | 76 | 12,673 | 0.7% | 84 | 8,233 | 0.4% | 118 | 15,290 | 0.9% | 102 | 11,099 | 0.6% | |||||
Commercial loans | 13 | 1,858 | 0.5% | 16 | 1,921 | 0.5% | 34 | 4,214 | 1.0% | 25 | 3,475 | 1.0% | |||||
Total loans delinquent 90 days or more | 836 | $ 37,471 | 0.6% | 856 | $ 32,913 | 0.5% | 983 | $ 51,274 | 0.9% | 1,030 | $ 41,326 | 0.7% | |||||
Total loans delinquent | 2,763 | $ 69,506 | 1.1% | 2,770 | $ 82,390 | 1.4% | 2,780 | $ 84,721 | 1.4% | 3,542 | $ 100,635 | 1.7% | |||||
* - Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding. | |||||||||||||||||
Northwest Bancshares, Inc. and Subsidiaries | ||||||||||
Allowance for loan losses | ||||||||||
(Dollars in thousands) | ||||||||||
Quarter ended | Six months ended | |||||||||
June 30, | June 30, | |||||||||
2015 | 2014 | 2015 | 2014 | |||||||
Allowance for loan losses | ||||||||||
Beginning balance | $ 67,298 | 76,234 | 67,518 | 71,348 | ||||||
Provision | 1,050 | 8,285 | 1,950 | 15,770 | ||||||
Charge-offs residential mortgage | (278) | (883) | (613) | (1,342) | ||||||
Charge-offs home equity | (542) | (593) | (884) | (965) | ||||||
Charge-offs other consumer | (1,759) | (1,450) | (3,699) | (3,166) | ||||||
Charge-offs commercial real estate | (3,439) | (2,743) | (4,552) | (3,510) | ||||||
Charge-offs commercial | (6,356) | (9,351) | (7,080) | (10,286) | ||||||
Recoveries | 3,083 | 1,943 | 6,417 | 3,593 | ||||||
Ending balance | $ 59,057 | 71,442 | 59,057 | 71,442 | ||||||
Net charge-offs to average loans, annualized | 0.61% | 0.90% | 0.34% | 0.54% | ||||||
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 June 30, | ||||||
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) | $ 6,073,911 | 71,445 | 4.72% | $ 5,833,540 | 71,266 | 4.90% |
Mortgage-backed securities (c) | 477,800 | 2,058 | 1.72% | 601,066 | 2,666 | 1.77% |
Investment securities (c) (d) | 482,670 | 2,887 | 2.39% | 507,315 | 3,472 | 2.74% |
FHLB stock | 35,608 | 475 | 5.35% | 43,944 | 697 | 6.34% |
Other interest-earning deposits | 272,691 | 180 | 0.26% | 424,434 | 286 | 0.27% |
Total interest-earning assets | 7,342,680 | 77,045 | 4.21% | 7,410,299 | 78,387 | 4.23% |
Noninterest earning assets (e) | 529,528 | 528,914 | ||||
Total assets | $ 7,872,208 | $ 7,939,213 | ||||
Liabilities and shareholders' equity: | ||||||
Interest-bearing liabilities: | ||||||
Savings deposits | $ 1,263,785 | 838 | 0.27% | $ 1,239,563 | 821 | 0.27% |
Interest-bearing demand deposits | 920,071 | 131 | 0.06% | 896,014 | 149 | 0.07% |
Money market deposit accounts | 1,147,017 | 759 | 0.27% | 1,182,542 | 792 | 0.27% |
Time deposits | 1,409,740 | 3,963 | 1.13% | 1,598,523 | 4,659 | 1.17% |
Borrowed funds (f) | 929,744 | 6,929 | 2.99% | 872,653 | 6,623 | 3.04% |
Junior subordinated debentures | 103,094 | 1,172 | 4.50% | 103,094 | 1,170 | 4.49% |
Total interest-bearing liabilities | 5,773,451 | 13,792 | 0.96% | 5,892,389 | 14,214 | 0.97% |
Noninterest-bearing demand deposits | 957,912 | 852,253 | ||||
Noninterest bearing liabilities | 77,075 | 128,072 | ||||
Total liabilities | 6,808,438 | 6,872,714 | ||||
Shareholders' equity | 1,063,770 | 1,066,499 | ||||
Total liabilities and shareholders' equity | $ 7,872,208 | $ 7,939,213 | ||||
Net interest income/ Interest rate spread | 63,253 | 3.25% | 64,173 | 3.26% | ||
Net interest-earning assets/ Net interest margin | $ 1,569,229 | 3.45% | $ 1,517,910 | 3.46% | ||
Ratio of interest-earning assets to | ||||||
interest-bearing liabilities | 1.27X | 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 - 4.69% and 4.86%, respectively, Investment securities - 1.88% | ||||||
and 2.06%, respectively, Interest-earning assets - 4.15% and 4.17%, respectively. GAAP basis net interest rate spreads were 3.19% and | ||||||
3.20%, respectively, and GAAP basis net interest margins were 3.39% and 3.39%, 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. | ||||||
Six months ended June 30, | ||||||
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) | $ 6,046,741 | 142,627 | 4.76% | $ 5,828,500 | 141,132 | 4.88% |
Mortgage-backed securities (c) | 492,209 | 4,292 | 1.74% | 611,050 | 5,459 | 1.79% |
Investment securities (c) (d) | 484,366 | 6,006 | 2.48% | 507,334 | 7,099 | 2.80% |
FHLB stock (h) | 35,872 | 838 | 4.71% | 43,830 | 973 | 4.44% |
Other interest-earning deposits | 252,210 | 319 | 0.25% | 370,292 | 486 | 0.26% |
Total interest-earning assets | 7,311,398 | 154,082 | 4.25% | 7,361,006 | 155,149 | 4.25% |
Noninterest earning assets (e) | 569,689 | 573,837 | ||||
Total assets | $ 7,881,087 | $ 7,934,843 | ||||
Liabilities and shareholders' equity: | ||||||
Interest-bearing liabilities: | ||||||
Savings deposits | $ 1,247,854 | 1,651 | 0.27% | $ 1,224,042 | 1,624 | 0.27% |
Interest-bearing demand deposits | 899,260 | 262 | 0.60% | 873,972 | 288 | 0.07% |
Money market deposit accounts | 1,156,079 | 1,524 | 0.27% | 1,178,202 | 1,574 | 0.27% |
Time deposits | 1,430,989 | 8,020 | 1.13% | 1,621,745 | 9,425 | 1.17% |
Borrowed funds (f) | 945,192 | 13,904 | 2.97% | 876,897 | 13,180 | 3.03% |
Junior subordinated debentures | 103,094 | 2,330 | 4.50% | 103,094 | 2,327 | 4.49% |
Total interest-bearing liabilities | 5,782,468 | 27,691 | 0.97% | 5,877,952 | 28,418 | 0.97% |
Noninterest-bearing demand deposits | 936,090 | 833,750 | ||||
Noninterest bearing liabilities | 98,992 | 114,994 | ||||
Total liabilities | 6,817,550 | 6,826,696 | ||||
Shareholders' equity | 1,063,537 | 1,108,147 | ||||
Total liabilities and shareholders' equity | $ 7,881,087 | $ 7,934,843 | ||||
Net interest income/ Interest rate spread | 126,391 | 3.28% | 126,731 | 3.28% | ||
Net interest-earning assets/ Net interest margin | $ 1,528,930 | 3.46% | $ 1,483,054 | 3.44% | ||
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 - 4.73% and 4.85%, respectively, Investment securities - 1.93% | ||||||
and 2.11%, respectively, Interest-earning assets - 4.19% and 4.17%, respectively. GAAP basis net interest rate spreads were 3.22% and | ||||||
3.20%, respectively, and GAAP basis net interest margins were 3.40% 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 | |||||
June 30, 2015 | March 31, 2015 | |||||
Average | Interest | Avg. | Average | Interest | Avg. | |
Balance | Yield/ | Balance | Yield/ | |||
Cost (g) | Cost (g) | |||||
Assets: | ||||||
Interest-earning assets: | ||||||
Loans receivable (a) (b) (d) | $ 6,073,911 | 71,445 | 4.72% | $ 6,019,250 | 71,182 | 4.80% |
Mortgage-backed securities (c) | 477,800 | 2,058 | 1.72% | 506,778 | 2,234 | 1.76% |
Investment securities (c) (d) | 482,670 | 2,887 | 2.39% | 486,078 | 3,119 | 2.57% |
FHLB stock (h) | 35,608 | 475 | 5.35% | 36,139 | 363 | 4.07% |
Other interest-earning deposits | 272,691 | 180 | 0.26% | 246,296 | 139 | 0.23% |
Total interest-earning assets | 7,342,680 | 77,045 | 4.21% | 7,294,541 | 77,037 | 4.28% |
Noninterest earning assets (e) | 529,528 | 595,425 | ||||
Total assets | $ 7,872,208 | $ 7,889,966 | ||||
Liabilities and shareholders' equity: | ||||||
Interest-bearing liabilities: | ||||||
Savings deposits | $ 1,263,785 | 838 | 0.27% | $ 1,231,745 | 813 | 0.27% |
Interest-bearing demand deposits | 920,071 | 131 | 0.06% | 878,230 | 131 | 0.06% |
Money market deposit accounts | 1,147,017 | 759 | 0.27% | 1,165,159 | 765 | 0.27% |
Time deposits | 1,409,740 | 3,963 | 1.13% | 1,452,476 | 4,057 | 1.13% |
Borrowed funds (f) | 929,744 | 6,929 | 2.99% | 960,812 | 6,975 | 2.94% |
Junior subordinated debentures | 103,094 | 1,172 | 4.50% | 103,094 | 1,158 | 4.49% |
Total interest-bearing liabilities | 5,773,451 | 13,792 | 0.96% | 5,791,516 | 13,899 | 0.97% |
Noninterest-bearing demand deposits | 957,912 | 914,025 | ||||
Noninterest bearing liabilities | 77,075 | 121,121 | ||||
Total liabilities | 6,808,438 | 6,826,662 | ||||
Shareholders' equity | 1,063,770 | 1,063,304 | ||||
Total liabilities and shareholders' equity | $ 7,872,208 | $ 7,889,966 | ||||
Net interest income/ Interest rate spread | 63,253 | 3.25% | 63,138 | 3.31% | ||
Net interest-earning assets/ Net interest margin | $ 1,569,229 | 3.45% | $ 1,503,025 | 3.51% | ||
Ratio of interest-earning assets to | ||||||
interest-bearing liabilities | 1.27X | 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 - 4.69% and 4.76%, respectively, Investment securities -1.88% | ||||||
and 1.97%, respectively, Interest-earning assets - 4.15% and 4.21%, respectively. GAAP basis net interest rate spreads were 3.19% and | ||||||
3.24%, respectively, and GAAP basis net interest margins were 3.39% 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-second-quarter-2015-earnings-and-quarterly-dividend-300114514.html
SOURCE Northwest Bancshares, Inc.
