NORTHWEST BANCSHARES, INC. 
By WARREN, Pa., Jan. 22, 2013 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2012 of $16.3 million, or $0.18 per diluted share. This represents an increase of $1.1 million, or 7.6%, over the same quarter last year when net income was $15.2 million, or $0.16 per diluted share, and an increase of $632,000, or 4.0%, over the quarter ended September 30, 2012 when net income was $15.7 million, or $0.17 per diluted share. The annualized returns on average shareholders' equity and average assets for the current quarter were 5.68% and 0.82% compared to 5.23% and 0.76% for the same quarter last year and 5.37% and 0.78% for the quarter ended September 30, 2012.
As previously announced the Board of Directors declared a quarterly cash dividend of $0.12 per share for the first quarter of 2013 and accelerated its payment into the fourth quarter of 2012. Paid on December 24, 2012, this represents the 73(rd) consecutive quarter in which the Company has declared a cash dividend.
Net interest income increased by $77,000, or 0.1%, to $66.6 million for the quarter ended December 31, 2012, from $66.5 million for the quarter ended December 31, 2011, as a $5.2 million decrease in interest paid on deposit accounts was partially offset by a $3.2 million decrease in interest income on loans receivable and a $1.9 million decrease in interest income from investment securities. These changes from the previous year were primarily due to decreases in market interest rates and continued competitive pricing pressure.
The provision for loan losses decreased by $2.3 million, or 22.2%, to $8.2 million for the quarter ended December 31, 2012, from $10.5 million for the quarter ended December 31, 2011. As of December 31, 2012, the allowance for loan losses was $73.2 million, or 1.28% of total loans, compared to $71.1 million, or 1.28% of total loans, as of December 31, 2011. The decrease in the provision for loan losses is partially attributable to a decrease in loans that are 90 days or more delinquent to $68.3 million as of December 31, 2012, from $95.8 million as of December 31, 2011 and $80.4 million as of September 30, 2012. Additionally, net charge-offs for the quarter ended December 31, 2012, decreased by $6.5 million, or 51.2%, to $6.1 million compared to $12.6 million in the same quarter last year.
Noninterest income increased by $1.1 million, or 7.8%, to $15.1 million for the quarter ended December 31, 2012, from $14.0 million for the quarter ended December 30, 2011, due primarily to an increase in mortgage banking income of $1.9 million, as an increased number of residential mortgage loans were sold at favorable pricing levels.
Noninterest expense increased by $2.8 million, or 5.7%, to $51.2 million for the quarter ended December 31, 2012, from $48.4 million for the quarter ended December 30, 2011, due primarily to an increase in compensation and employee benefits of $2.9 million, or 11.3%. This increase is the result of the addition of 92 full-time equivalent employees, primarily in our compliance and lending areas and increased benefit costs. Additionally, real estate owned expense increased by $799,000. Partially offsetting these increases was a decrease in marketing expense of $3.0 million, which was due to the timing of marketing campaigns.
Net income for the year ended December 31, 2012 of $63.6 million represents a decrease of $591,000, or 0.9%, compared to net income of $64.2 million for the year ended December 31, 2011. Even though net income decreased slightly from the previous year, diluted earnings per share increased to $0.68 from $0.64, as there were 5,974,113 fewer diluted average shares outstanding in 2012. The annualized returns on average shareholders' equity and average assets were 5.48% and 0.79%, respectively, for the year ended December 31, 2012 compared to 5.24% and 0.80%, respectively, in the prior year.
In making this announcement, William J. Wagner, President and CEO, noted, "2012 was a challenging but productive year. During the year, we further enhanced our compliance management system, restructured our Credit Department to strengthen our commercial lending process and exited some of our larger problem loans. In addition, we were able to deploy $230 million of interest-earning cash by increasing investments securities by approximately $100 million and growing our loan portfolio by $150 million. This use of cash, along with continued growth in checking balances enabled us to maintain our net interest margin at 3.65% throughout the year. Credit quality continued to improve and we were able to decrease our provision for loan losses by nearly $8 million from the prior year. Non-performing loans are now at their lowest level in four years and net charge-offs were down approximately 40% from the previous year. Finally, we continued to manage our excess capital position during the quarter by repurchasing more than 4.2 million of our common shares at an average price of $11.81 per share."
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 as well as benefits and wealth management services. Northwest operates 165 community banking offices in Pennsylvania, New York, Ohio and Maryland and 52 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. Additional information regarding Northwest Bancshares, Inc. 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 that could result from an economic downturn; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses; and (7) increased risk associated with an increase in commercial real-estate and business loans and non-performing loans. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except per share amounts)
December 31,
------------
Assets 2012 2011
------ ---- ----
Cash and cash equivalents $88,277 94,276
Interest-earning deposits in other financial institutions 362,794 593,388
Federal funds sold and other short-term investments 633 633
Marketable securities available-for-sale (amortized cost of $1,053,122 and $885,408) 1,079,074 908,349
Marketable securities held-to-maturity (fair value of $161,969 and $239,412) 155,081 231,389
------- -------
Total cash, interest-earning deposits and marketable securities 1,685,859 1,828,035
Residential mortgage loans held for sale 15,441 967
Residential mortgage loans 2,400,208 2,396,399
Home equity loans 1,076,637 1,084,786
Other consumer loans 235,367 245,689
Commercial real estate loans 1,585,833 1,435,767
Commercial loans 388,994 387,911
------- -------
Total loans receivable 5,702,480 5,551,519
Allowance for loan losses (73,219) (71,138)
------- -------
Loans receivable, net 5,629,261 5,480,381
Federal Home Loan Bank stock, at cost 46,834 48,935
Accrued interest receivable 23,313 24,599
Real estate owned, net 26,165 26,887
Premises and Equipment, net 138,824 132,152
Bank owned life insurance 137,044 133,524
Goodwill and other intangible assets 178,530 174,005
Other assets 76,770 109,187
------ -------
Total assets $7,942,600 7,957,705
Liabilities and Shareholders' equity
------------------------------------
Liabilities
Noninterest-bearing demand deposits $755,429 658,560
Interest-bearing demand deposits 851,771 800,676
Savings deposits 2,271,311 2,036,272
Time deposits 1,886,089 2,284,817
--------- ---------
Total deposits 5,764,600 5,780,325
Borrowed funds 860,047 827,925
Advances by borrowers for taxes and insurance 23,325 23,571
Accrued interest payable 888 1,104
Other liabilities 62,177 66,782
Junior subordinated debentures 103,094 103,094
------- -------
Total liabilities 6,814,131 6,802,801
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, 93,652,960 shares
and 97,493,046 shares issued and outstanding, respectively 937 975
Paid-in-capital 613,249 659,523
Retained earnings 550,296 543,598
Unallocated common stock of Employee Stock Ownership Plan (24,525) (25,966)
Accumulated other comprehensive loss (11,488) (23,226)
------- -------
Total shareholders' equity 1,128,469 1,154,904
Total liabilities and shareholders' equity $7,942,600 7,957,705
Equity to assets 14.21% 14.51%
Tangible common equity to
assets 12.23% 12.60%
Book value per share $12.05 $11.85
Tangible book value per share $10.14 $10.06
Closing market price per
share $12.14 $12.44
Full time equivalent
employees 2,042 1,950
Number of banking offices 165 168
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
Quarter ended
-------------
December 31, September 30,
2012 2011 2012
---- ---- ----
Interest income:
Loans receivable $76,701 79,930 77,109
Mortgage-backed securities 3,697 5,077 3,941
Taxable investment securities 743 776 577
Tax-free investment securities 2,132 2,600 2,223
Interest-earning deposits 382 423 364
Total interest income 83,655 88,806 84,214
Interest expense:
Deposits 9,042 14,227 10,207
Borrowed funds 7,998 8,041 8,013
Total interest expense 17,040 22,268 18,220
Net interest income 66,615 66,538 65,994
Provision for loan losses 8,173 10,502 6,915
----- ------ -----
Net interest income after provision
for loan losses 58,442 56,036 59,079
Noninterest income:
Impairment losses on securities - (1,504) (340)
Noncredit related losses on securities not
expected
to be sold (recognized in other comprehensive
income) - 1,074 247
--- ----- ---
Net impairment losses - (430) (93)
Gain/ (loss) on sale of investments, net 394 157 260
Service charges and fees 8,587 8,630 8,772
Trust and other financial services income 2,288 1,967 2,122
Insurance commission income 1,463 1,582 1,480
Loss on real estate owned, net (2,020) (466) (1,187)
Income from bank owned life insurance 1,589 1,199 1,148
Mortgage banking income 1,874 (29) 1,484
Other operating income 964 1,428 949
Total noninterest income 15,139 14,038 14,935
Noninterest expense:
Compensation and employee benefits 28,302 25,434 28,171
Premises and occupancy costs 5,680 5,556 5,498
Office operations 3,419 3,286 3,141
Processing expenses 6,459 5,982 6,340
Marketing expenses 134 3,098 1,830
Federal deposit insurance premiums 1,211 933 1,305
Professional services 1,869 1,441 1,939
Amortization of intangible assets 219 374 219
Real estate owned expense 1,261 462 832
Other expense 2,662 1,870 2,528
Total noninterest expense 51,216 48,436 51,803
------ ------ ------
Income before income taxes 22,365 21,638 22,211
Income tax expense 6,040 6,463 6,518
Net income $16,325 15,175 15,693
======= ====== ======
Basic earnings per share $0.18 0.16 0.17
Diluted earnings per share $0.18 0.16 0.17
Annualized return on average equity 5.68% 5.23% 5.37%
Annualized return on average assets 0.82% 0.76% 0.78%
Basic common shares outstanding 92,716,973 93,675,589 94,422,878
Diluted common shares outstanding 92,937,877 93,972,187 94,610,656
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
Year ended
----------
December 31,
2012 2011
---- ----
Interest income:
Loans receivable $309,391 320,942
Mortgage-backed securities 16,738 23,450
Taxable investment securities 2,328 2,452
Tax-free investment securities 9,119 11,514
Interest-earning deposits 1,599 1,712
Total interest income 339,175 360,070
Interest expense:
Deposits 43,377 60,721
Borrowed funds 31,822 32,080
Total interest expense 75,199 92,801
Net interest income 263,976 267,269
Provision for loan losses 26,338 34,170
------ ------
Net interest income after provision
for loan losses 237,638 233,099
Noninterest income:
Impairment losses on securities (996) (2,081)
Noncredit related losses on securities not
expected
to be sold (recognized in other comprehensive
income) 665 1,144
--- -----
Net impairment losses (331) (937)
Gain on sale of investments, net 654 358
Service charges and fees 34,486 35,378
Trust and other financial services income 8,544 8,125
Insurance commission income 6,264 6,548
Loss on real estate owned, net (4,859) (2,426)
Income from bank owned life insurance 4,961 6,019
Mortgage banking income 4,678 858
Other operating income 4,154 4,213
Total noninterest income 58,551 58,136
Noninterest expense:
Compensation and employee benefits 111,727 106,595
Premises and occupancy costs 22,409 23,055
Office operations 13,224 12,850
Processing expenses 25,000 23,332
Marketing expenses 7,829 9,953
Federal deposit insurance premiums 5,554 7,101
Professional services 7,005 5,224
Amortization of intangible assets 1,012 1,819
Real estate owned expense 3,404 1,625
Other expense 9,097 8,673
Total noninterest expense 206,261 200,227
------- -------
Income before income taxes 89,928 91,008
Income tax expense 26,368 26,857
Net income $63,560 64,151
======= ======
Basic earnings per share $0.68 0.64
Diluted earnings per share $0.68 0.64
Annualized return on average equity 5.48% 5.24%
Annualized return on average assets 0.79% 0.80%
Basic common shares outstanding 93,912,821 99,801,783
Diluted common shares outstanding 94,203,451 100,177,564
Northwest Bancshares, Inc. and Subsidiaries
Asset quality
(Dollars in thousands)
December 31, 2012 December 31, 2011 December 31, 2010 December 31, 2009
------------------ ----------------- ----------------- -----------------
Non-accrual loans current:
Residential mortgage loans $797 - - -
Home equity loans 635 - - -
Other consumer loans 44 - - -
Commercial real estate loans 24,960 13,057 7,378 -
Commercial loans 5,424 13,480 23,317 13,141
Total non-accrual loans current $31,860 26,537 30,695 13,141
======= ====== ====== ======
Non-accrual loans delinquent 30 days to 59 days:
Residential mortgage loans $ - - - -
Home equity loans - - - -
Other consumer loans - - - -
Commercial real estate loans 5,549 3,274 4,039 -
Commercial loans 2,002 90 1,465 -
Total non-accrual loans delinquent 30 days to 59 days $7,551 3,364 5,504 -
====== ===== ===== ===
Non-accrual loans delinquent 60 days to 89 days:
Residential mortgage loans $ - - - -
Home equity loans - - - -
Other consumer loans - - - -
Commercial real estate loans 2,802 1,560 10,923 1,705
Commercial loans 9,652 3,808 848 -
Total non-accrual loans delinquent 60 days to 89 days $12,454 5,368 11,771 1,705
======= ===== ====== =====
Non-accrual loans delinquent 90 days or more:
Residential mortgage loans $24,286 28,221 29,751 29,134
Home equity loans 8,479 9,560 10,263 10,008
Other consumer loans 1,936 2,667 2,565 2,775
Commercial real estate loans 24,550 44,603 44,965 49,594
Commercial loans 9,096 10,785 12,877 18,269
Total non- accrual loans delinquent 90 days or more $68,347 95,836 100,421 109,780
======= ====== ======= =======
Total non-accrual loans $120,212 131,105 148,391 124,626
----------------------- -------- ------- ------- -------
December 31, December 31, December 31, December 31,
2012 2011 2010 2009
---- ---- ---- ----
Nonperforming loans $120,212 131,105 148,391 124,626
Real estate owned, net 26,165 26,887 20,780 20,257
------ ------ ------ ------
Nonperforming assets $146,377 157,992 169,171 144,883
======== ======= ======= =======
Non-accrual troubled debt restructuring * $39,614 29,575 41,740 2,908
Accruing troubled debt restructuring 49,830 39,854 10,865 18,177
------ ------ ------ ------
Total troubled debt restructuring $89,444 69,429 52,605 21,085
======= ====== ====== ======
Nonperforming loans to total loans 2.11% 2.36% 2.68% 2.35%
Nonperforming assets to total assets 1.84% 1.99% 2.08% 1.81%
Allowance for loan losses to total loans 1.28% 1.28% 1.38% 1.33%
Allowance for loan losses to nonperforming loans 60.91% 54.26% 51.49% 56.49%
* 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)
December 31, December 31, December 31, December 31,
------------ ------------ ------------ ------------
2012 * 2011 * 2010 * 2009 *
---- ---- ---- ----
Loans delinquent 30 days to 59 days:
Residential mortgage loans 430 $32,921 1.4% 427 $33,671 1.4% 427 $35,329 1.5% 343 $27,913 1.2%
Home equity loans 224 6,534 0.6% 222 7,426 0.7% 230 7,317 0.7% 184 7,014 0.6%
Consumer loans 1,122 5,456 2.3% 903 4,854 2.0% 1,008 5,318 2.1% 923 4,297 1.6%
Commercial real estate loans 87 13,001 0.8% 104 10,680 0.7% 82 16,287 1.2% 85 16,152 1.3%
Commercial loans 41 3,233 0.8% 32 2,027 0.5% 48 6,590 1.5% 48 3,293 0.9%
--- --- ---- --- ---- --- ---- --- ----
Total loans delinquent 30 days to 59 days 1,904 $61,145 1.1% 1,688 58,658 1.1% 1,795 $70,841 1.3% 1,583 $58,669 1.1%
===== ======= === ===== ====== === ===== ======= === ===== ======= ===
Loans delinquent 60 days to 89 days:
Residential mortgage loans 100 $9,387 0.4% 99 $8,629 0.4% 106 $9,848 0.4% 77 $6,657 0.3%
Home equity loans 65 1,977 0.2% 47 1,953 0.2% 81 3,249 0.3% 52 1,719 0.2%
Consumer loans 448 1,830 0.8% 412 1,787 0.7% 356 1,331 0.5% 348 1,425 0.5%
Commercial real estate loans 33 4,596 0.3% 38 3,122 0.2% 39 14,365 1.1% 35 5,811 0.5%
Commercial loans 17 10,158 2.5% 25 4,958 1.3% 9 1,678 0.4% 26 2,474 0.7%
--- --- ---- --- ---- --- ---- --- ----
Total loans delinquent 60 days to 89 days 663 $27,948 0.5% 621 20,449 0.4% 591 $30,471 0.6% 538 $18,086 0.3%
=== ======= === === ====== === === ======= === === ======= ===
Loans delinquent 90 days or more:
Residential mortgage loans 266 $24,286 1.0% 273 $28,221 1.2% 275 $29,751 1.2% 265 $29,134 1.2%
Home equity loans 175 8,479 0.8% 177 9,560 0.9% 190 10,263 0.9% 195 10,008 0.9%
Consumer loans 427 1,936 0.8% 456 2,667 1.1% 374 2,565 1.0% 546 2,775 1.0%
Commercial real estate loans 146 24,550 1.6% 131 44,603 3.1% 181 44,965 3.3% 199 49,594 4.0%
Commercial loans 61 9,096 2.2% 66 10,785 2.8% 111 12,877 3.0% 124 18,269 4.9%
--- --- ---- --- ---- --- ---- --- ----
Total loans delinquent 90 days or more 1,075 $68,347 1.2% 1,103 95,836 1.7% 1,131 $100,421 1.8% 1,329 $109,780 2.1%
===== ======= === ===== ====== === ===== ======== === ===== ======== ===
Total loans delinquent 3,642 $157,440 2.8% 3,412 $174,943 3.2% 3,517 $201,733 3.7% 3,450 $186,535 3.5%
===== ======== === ===== ======== === ===== ======== === ===== ======== ===
* - 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 December 31, 2012
(Dollars in thousands)
Recorded
investment
Special in loans
Pass mention Substandard Doubtful Loss receivable
---- ------- ----------- -------- ---- ----------
Personal Banking:
Residential mortgage loans $2,395,809 - 18,743 48 1,049 2,415,649
Home equity loans 1,068,183 - 8,454 - - 1,076,637
Other consumer loans 234,106 - 1,261 - - 235,367
------- --- ----- --- --- -------
Total Personal Banking 3,698,098 - 28,458 48 1,049 3,727,653
Business Banking:
Commercial real estate loans 1,352,118 68,130 163,751 1,834 - 1,585,833
Commercial loans 320,228 13,077 52,742 2,947 - 388,994
------- ------ ------ ----- --- -------
Total Business Banking 1,672,346 81,207 216,493 4,781 - 1,974,827
$5,370,444 81,207 244,951 4,829 1,049 5,702,480
========== ====== ======= ===== ===== =========
Northwest Bancshares, Inc. and Subsidiaries
Loans by credit quality indicators as of December 31, 2011
(Dollars in thousands)
Recorded
investment
Special in loans
Pass mention Substandard Doubtful Loss receivable
---- ------- ----------- -------- ---- ----------
Personal Banking:
Residential mortgage loans $2,373,275 - 22,843 11 1,237 2,397,366
Home equity loans 1,074,512 - 10,274 - - 1,084,786
Other consumer loans 244,491 - 1,198 - - 245,689
------- --- ----- --- --- -------
Total Personal Banking 3,692,278 - 34,315 11 1,237 3,727,841
Business Banking:
Commercial real estate loans 1,211,583 75,981 144,947 3,256 - 1,435,767
Commercial loans 298,597 23,887 62,753 2,674 - 387,911
------- ------ ------ ----- --- -------
Total Business Banking 1,510,180 99,868 207,700 5,930 - 1,823,678
$5,202,458 99,868 242,015 5,941 1,237 5,551,519
========== ====== ======= ===== ===== =========
Northwest Bancshares, Inc. and Subsidiaries
Allowance for loan losses
(Dollars in thousands)
Quarter ended Year ended
December 31, December 31,
------------ ------------
2012 2011 2012 2011
---- ---- ---- ----
Allowance for loan losses
Beginning balance $71,177 73,208 71,138 76,412
Provision 8,173 10,502 26,338 34,170
Charge-offs residential mortgage (836) (1,530) (4,295) (4,198)
Charge-offs home equity (1,317) (998) (4,066) (4,734)
Charge-offs other consumer (1,592) (1,467) (5,919) (5,283)
Charge-offs commercial real estate (4,102) (4,288) (9,919) (12,508)
Charge-offs commercial (1,245) (4,935) (6,254) (15,641)
Recoveries 2,961 646 6,196 2,920
Ending balance $73,219 71,138 73,219 71,138
Net charge-offs to average loans, annualized 0.43% 0.91% 0.43% 0.72%
Northwest Bancshares, Inc. and Subsidiaries
Municipal securities portfolio
(Dollars in thousands)
December 31, 2012 As a %
-----------------
Market Book Unrealized of book
value value gain value
----- ----- ---- -----
Municipal securities by state:
Pennsylvania
School districts $96,271 91,951 4,320 46.7%
General obligations 37,205 35,418 1,787 18.0%
Revenue bonds 3,006 2,948 58 1.5%
----- ----- --- ---
Total
Pennsylvania 136,482 130,317 6,165 66.2%
New York 26,831 25,954 877 13.2%
Ohio 6,390 5,973 417 3.0%
All other
states 37,683 34,659 3,024 17.6%
----------
$207,386 196,903 10,483
======== ======= ======
December 31, 2011 As a %
-----------------
Market Book Unrealized of book
value value gain value
----- ----- ---- -----
Municipal securities by state:
Pennsylvania
School districts $119,920 114,699 5,221 48.4%
General obligations 43,129 41,766 1,363 17.6%
Revenue bonds 4,717 4,709 8 2.0%
----- ----- --- ---
Total
Pennsylvania 167,766 161,174 6,592 68.0%
New York 35,269 33,679 1,590 14.2%
Ohio 6,661 6,426 235 2.7%
All other
states 38,073 35,904 2,169 15.1%
----------
$247,769 237,183 10,586
======== ======= ======
Northwest Bancshares, Inc. and Subsidiaries
Average balance sheet
(Dollars in thousands)
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and
average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of
assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
Quarter ended December 31,
2012 2011
---- ----
Average Interest Avg. Average Interest Avg.
Balance Yield/ Balance Yield/
Cost (h) Cost (h)
------- -------
Assets:
-------
Interest-earning assets:
Loans receivable (a) (b) (d) $5,709,603 77,279 5.41% 5,544,194 80,395 5.79%
Mortgage-backed securities (c) 717,028 3,697 2.06% 797,071 5,077 2.55%
Investment securities (c) (d) 408,925 4,022 3.93% 376,545 4,776 5.07%
FHLB stock 46,833 51 0.44% 49,775 - -
Other interest-earning deposits 608,772 382 0.25% 615,906 423 0.27%
------- --- ------- ---
Total interest-earning assets 7,491,161 85,431 4.56% 7,383,491 90,671 4.90%
Noninterest earning assets (e) 502,514 571,873
------- -------
Total assets $7,993,675 7,955,364
========== =========
Liabilities and shareholders' equity:
-------------------------------------
Interest-bearing liabilities:
Savings accounts $1,145,405 1,019 0.35% 1,064,533 1,139 0.42%
Interest-bearing demand accounts 837,955 145 0.07% 787,674 238 0.12%
Money market accounts 1,115,655 842 0.30% 959,378 1,013 0.42%
Certificate accounts 1,923,699 7,036 1.46% 2,308,440 11,837 2.03%
Borrowed funds (f) 864,085 6,562 3.02% 836,948 6,604 3.13%
Junior subordinated debentures 103,094 1,436 5.45% 103,094 1,437 5.45%
------- ----- ------- -----
Total interest-bearing liabilities 5,989,893 17,040 1.13% 6,060,067 22,268 1.46%
Noninterest bearing liabilities (g) 854,786 734,898
------- -------
Total liabilities 6,844,679 6,794,965
Shareholders' equity 1,148,996 1,160,399
--------- ---------
Total liabilities and shareholders' equity $7,993,675 7,955,364
========== =========
Net interest income/ Interest rate spread 68,391 3.43% 68,403 3.44%
Net interest-earning assets/ Net interest margin $1,501,268 3.65% 1,323,424 3.71%
Ratio of interest-earning assets to
interest-bearing liabilities 1.25X 1.22X
---------------------------- ----- -----
(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 securities sold under agreements to repurchase.
(g) Average balances include non-interest bearing demand deposits (checking accounts).
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 5.37% and 5.76%, respectively, Investment securities - 2.81%
and 3.59%, respectively, Interest-earning assets - 4.47% and 4.80%, respectively. GAAP basis net interest rate spreads were 3.34% and
3.34%, respectively, and GAAP basis net interest margins were 3.56% and 3.60%, respectively.
Northwest Bancshares, Inc. and Subsidiaries
Average balance sheet
(Dollars in thousands)
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and
average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of
assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
Year ended December 31,
2012 2011
---- ----
Average Interest Avg. Average Interest Avg.
Balance Yield/ Balance Yield/
Cost (h) Cost (h)
------- -------
Assets:
-------
Interest-earning assets:
Loans receivable (a) (b) (d) $5,655,179 311,650 5.51% 5,508,790 322,656 5.85%
Mortgage-backed securities (c) 736,896 16,738 2.27% 874,366 23,450 2.68%
Investment securities (c) (d) 353,431 16,357 4.63% 384,389 20,166 5.25%
FHLB stock 47,205 87 0.18% 53,985 - -
Other interest-earning deposits 638,366 1,599 0.25% 665,074 1,712 0.25%
------- ----- ------- -----
Total interest-earning assets 7,431,077 346,431 4.66% 7,486,604 367,984 4.91%
Noninterest earning assets (e) 581,429 570,888
------- -------
Total assets $8,012,506 8,057,492
========== =========
Liabilities and shareholders' equity:
-------------------------------------
Interest-bearing liabilities:
Savings accounts $1,136,774 4,219 0.37% 1,075,890 5,000 0.46%
Interest-bearing demand accounts 822,626 792 0.10% 793,287 960 0.12%
Money market accounts 1,047,894 3,605 0.34% 939,317 4,243 0.45%
Certificate accounts 2,059,702 34,761 1.69% 2,362,313 50,518 2.14%
Borrowed funds (f) 850,171 26,105 3.07% 841,748 26,381 3.13%
Junior subordinated debentures 103,094 5,717 5.47% 103,094 5,699 5.45%
------- ----- ------- -----
Total interest-bearing liabilities 6,020,261 75,199 1.25% 6,115,649 92,801 1.52%
Noninterest bearing liabilities (g) 833,149 718,434
------- -------
Total liabilities 6,853,410 6,834,083
Shareholders' equity 1,159,096 1,223,409
--------- ---------
Total liabilities and shareholders' equity $8,012,506 8,057,492
========== =========
Net interest income/ Interest rate spread 271,232 3.41% 275,183 3.39%
Net interest-earning assets/ Net interest margin $1,410,816 3.65% 1,370,955 3.68%
Ratio of interest-earning assets to
interest-bearing liabilities 1.23X 1.22X
---------------------------- ----- -----
(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 securities sold under agreements to repurchase.
(g) Average balances include non-interest bearing demand deposits (checking accounts).
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 5.47% and 5.82%, respectively, Investment securities - 3.24%
and 3.63%, respectively, Interest-earning assets - 4.57% and 4.80%, respectively. GAAP basis net interest rate spreads were 3.32% and
3.28%, respectively, and GAAP basis net interest margins were 3.55% and 3.57%, 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.
Quarter ended Quarter ended
December 31, 2012 September 30, 2012
----------------- ------------------
Average Interest Avg. Average Interest Avg.
Balance Yield/ Balance Yield/
Cost (h) Cost (h)
------- -------
Assets:
-------
Interest-earning assets:
Loans receivable (a) (b) (d) $5,709,603 77,279 5.41% 5,703,380 77,698 5.43%
Mortgage-backed securities (c) 717,028 3,697 2.06% 722,368 3,941 2.18%
Investment securities (c) (d) 408,925 4,022 3.93% 350,081 3,997 4.57%
FHLB stock 46,833 51 0.44% 46,834 12 0.10%
Other interest-earning deposits 608,772 382 0.25% 598,114 364 0.24%
------- --- ------- ---
Total interest-earning assets 7,491,161 85,431 4.56% 7,420,777 86,012 4.62%
Noninterest earning assets (e) 502,514 625,460
------- -------
Total assets $7,993,675 8,046,237
========== =========
Liabilities and shareholders' equity:
-------------------------------------
Interest-bearing liabilities:
Savings accounts $1,145,405 1,019 0.35% 1,154,104 1,060 0.37%
Interest-bearing demand accounts 837,955 145 0.07% 834,890 180 0.09%
Money market accounts 1,115,655 842 0.30% 1,076,799 920 0.34%
Certificate accounts 1,923,699 7,036 1.46% 1,991,987 8,047 1.61%
Borrowed funds (f) 864,085 6,562 3.02% 856,292 6,576 3.06%
Junior subordinated debentures 103,094 1,436 5.45% 103,094 1,437 5.45%
------- ----- ------- -----
Total interest-bearing liabilities 5,989,893 17,040 1.13% 6,017,166 18,220 1.20%
Noninterest bearing liabilities (g) 854,786 859,553
------- -------
Total liabilities 6,844,679 6,876,719
Shareholders' equity 1,148,996 1,169,518
--------- ---------
Total liabilities and shareholders' equity $7,993,675 8,046,237
========== =========
Net interest income/ Interest rate spread 68,391 3.43% 67,792 3.42%
Net interest-earning assets/ Net interest margin $1,501,268 3.65% 1,403,611 3.65%
Ratio of interest-earning assets to
interest-bearing liabilities 1.25X 1.23X
---------------------------- ----- -----
(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 securities sold under agreements to repurchase.
(g) Average balances include non-interest bearing demand deposits (checking accounts).
(h) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 5.37% and 5.39%, respectively, Investment securities - 2.81%
and 3.20%, respectively, Interest-earning assets - 4.47% and 4.52%, respectively. GAAP basis net interest rate spreads were 3.34% and
3.32%, respectively, and GAAP basis net interest margins were 3.56% and 3.56%, respectively.
SOURCE Northwest Bancshares, Inc.
