Northwest Bancshares, Inc. Announces Second Quarter 2015 Earnings and Quarterly Dividend

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.

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