Attached files
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|---|---|
| 8-K - Northwest Bancshares, Inc. | v219772_8k.htm |
EXHIBIT 99.1
PRESS RELEASE OF NORTHWEST BANCSHARES, INC.
EARNINGS RELEASE
FOR IMMEDIATE RELEASE
Contact: William J. Wagner, President and Chief Executive Officer (814) 726-2140
William W. Harvey, Jr., Executive Vice President and Chief Financial Officer (814) 726-2140
Northwest Bancshares, Inc. Announces Record Quarterly
Earnings and Increased Dividend Declaration
Warren, Pennsylvania – April 25, 2011
Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2011 of $17.3 million, or $0.16 per diluted share. This represents an increase of $4.1 million, or 31.1%, over the same quarter last year when net income was $13.2 million, or $0.12 per diluted share, and an increase of $4.6 million, or 36.2%, over the quarter ended December 31, 2010 when net income was $12.7 million, or $0.12 per diluted share. The annualized returns on average shareholders’ equity and average assets for the current quarter were 5.39% and 0.86% compared to 4.05% and 0.65% for the same quarter last year and 3.90% and 0.63% for the quarter ended December 31, 2010.
The Company also announced that its Board of Directors declared a 10% increase in its quarterly cash dividend to $0.11 per share payable on May 19, 2011, to shareholders of record as of May 5, 2011. This represents the 66th consecutive quarter in which the Company has paid a cash dividend and is the first increase in the dividend since June 30, 2007.
On December 20, 2010, the Company initiated a stock repurchase program, which was announced on November 5, 2010. The plan provides for the repurchase of up to 10%, or approximately 11,000,000 shares, of the Company’s common stock. Through March 31, 2011 the Company has repurchased 3,173,423 shares for $38.0 million, resulting in an average purchase price of $11.96 per share.
In making this announcement, William J. Wagner, President and CEO, noted, “We are pleased to report record quarterly financial results that are positive in almost all respects. Our net interest margin, at 3.66%, is substantially higher than a year ago and slightly higher than the previous quarter. Income earned from fees, commission and services remained consistent despite the legislative and regulatory issues our industry is facing. Expenses have been tightly controlled and our provision for loan losses is the lowest it has been for eight quarters. Deposit growth was robust, especially the growth in checking and savings deposits. The only negative trend that occurred was a $47.4 million, or 0.9%, decrease in our loan portfolio as new loan demand was relatively weak while the competition for loan growth has become much more aggressive.”
Net interest income increased by $7.0 million, or 11.7%, to $67.0 million for the quarter ended March 31, 2011, from $60.0 million for the quarter ended March 31, 2010. The increase in net interest income was primarily the result of a decrease in interest expense on deposits of $5.3 million, or 25.0%, to $16.1 million. This decrease resulted from changes in the mix of deposits as lower-cost demand and savings accounts grew by $252.0 million while time deposits decreased by $124.9 million.
The provision for loan losses decreased by $1.6 million, or 17.7%, to $7.2 million for the quarter ended March 31, 2011, from $8.8 million for the quarter ended March 31, 2010. This provision represents management’s estimate of the amount necessary to maintain the allowance for loan losses at a level required in accordance with generally accepted accounting principles. As of March 31, 2011, the allowance for loan losses was $76.5 million, or 1.39% of total loans, compared to $74.8 million, or 1.38% of total loans, as of March 31, 2010. Net charge-offs for the quarter ended March 31, 2011 were $7.2 million, or 0.52% of average loans on an annualized basis, compared to $4.4 million, or 0.33% of average loans on an annualized basis, in the previous year. Contributing to the increase in charge-offs was the Company negotiating a reduced payoff for a large troubled asset.
Noninterest income decreased by $1.6 million, or 9.7%, to $14.3 million for the quarter ended March 31, 2011, from $15.9 million for the quarter ended March 31, 2010. The decrease is attributable to the sale of approximately $55.0 million of Fannie Mae zero coupon bonds in the prior year which resulted in a gain of $2.1 million. Partially offsetting this decrease was an increase in insurance commission income of $238,000, or 20.8%, to $1.4 million for the quarter ended March 31, 2011, from $1.1 million for the quarter ended March 31, 2010 as we continue to increase our market penetration on sales of annuities and employee benefit insurance. All other major components of noninterest income increased slightly from the previous year.
Noninterest expense increased by $774,000, or 1.6%, to $49.4 million for the quarter ended March 31, 2011, from $48.6 million in the prior year. This increase is primarily a result of increases in professional services, marketing expenses and other expenses, which were partially offset by decreases in compensation and employee benefits and real estate owned expense. Professional services expense increased by $528,000, or 72.5%, to $1.3 million for the quarter ended March 31, 2011, from $728,000 for the quarter ended March 31, 2010 as a result of outsourcing the internal audit function and incurring additional expense related to enhancing compliance management. Marketing expenses increased by $516,000, or 35.8%, to $2.0 million as the Company continued a major campaign focused on the acquisition of checking account relationships.
The Company previously announced that its Board of Directors authorized the closing of its three offices in southeastern Florida, which have deposits of $55.2 million and loans of $105.5 million. The offices are expected to close on June 30, 2011.
Founded in 1896 and headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc., through its subsidiary Northwest Savings Bank, currently operates 172 community banking locations in Pennsylvania, New York, Ohio, Maryland and Florida. Northwest Savings Bank is a full-service financial institution offering a complete line of retail and business banking products as well as investment management and trust services. The Company also operates 52 consumer finance offices in Pennsylvania through its subsidiary, Northwest Consumer Discount Company. Northwest Bancshares, Inc.’s stock is listed on the NASDAQ Global Select Market. Additional information regarding Northwest Bancshares, Inc. can be accessed on-line at www.northwestsavingsbank.com.
# # #
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except per share amounts)
|
(Unaudited)
|
||||||||
|
March 31,
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December 31,
|
|||||||
|
2011
|
2010
|
|||||||
|
Assets
|
||||||||
|
Cash and cash equivalents
|
$ | 78,446 | 40,708 | |||||
|
Interest-earning deposits in other financial institutions
|
690,581 | 677,771 | ||||||
|
Federal funds sold and other short-term investments
|
633 | 632 | ||||||
|
Marketable securities available-for-sale (amortized cost of $974,030 and $945,791)
|
982,336 | 950,683 | ||||||
|
Marketable securities held-to-maturity (fair value of $313,727 and $354,126)
|
314,407 | 357,922 | ||||||
|
Total cash, interest-earning deposits and marketable securities
|
2,066,403 | 2,027,716 | ||||||
|
Loans held for sale
|
3,581 | 11,376 | ||||||
|
Mortgage loans - one- to four- family
|
2,362,580 | 2,386,928 | ||||||
|
Home equity loans and lines of credit
|
1,073,818 | 1,092,606 | ||||||
|
Consumer loans
|
249,127 | 259,123 | ||||||
|
Commercial real estate loans
|
1,368,622 | 1,350,319 | ||||||
|
Commercial business loans
|
428,840 | 433,653 | ||||||
|
Total loans receivable
|
5,486,568 | 5,534,005 | ||||||
|
Allowance for loan losses
|
(76,450 | ) | (76,412 | ) | ||||
|
Loans receivable, net
|
5,410,118 | 5,457,593 | ||||||
|
Federal Home Loan Bank stock, at cost
|
57,076 | 60,080 | ||||||
|
Accrued interest receivable
|
26,817 | 26,216 | ||||||
|
Real estate owned, net
|
19,682 | 20,780 | ||||||
|
Premises and Equipment, net
|
126,855 | 128,101 | ||||||
|
Bank owned life insurance
|
133,403 | 132,237 | ||||||
|
Goodwill
|
171,882 | 171,882 | ||||||
|
Other intangible assets
|
3,451 | 3,942 | ||||||
|
Other assets
|
106,517 | 119,608 | ||||||
|
Total assets
|
$ | 8,122,204 | 8,148,155 | |||||
|
Liabilities and Shareholders' equity
|
||||||||
|
Liabilities
|
||||||||
|
Noninterest-bearing demand deposits
|
$ | 610,692 | 575,281 | |||||
|
Interest-bearing demand deposits
|
792,457 | 782,257 | ||||||
|
Savings deposits
|
2,018,139 | 1,948,882 | ||||||
|
Time deposits
|
2,399,249 | 2,457,916 | ||||||
|
Total deposits
|
5,820,537 | 5,764,336 | ||||||
|
Borrowed funds
|
831,575 | 891,293 | ||||||
|
Advances by borrowers for taxes and insurance
|
26,191 | 22,868 | ||||||
|
Accrued interest payable
|
1,170 | 1,716 | ||||||
|
Other liabilities
|
52,521 | 57,398 | ||||||
|
Junior subordinated debentures
|
103,094 | 103,094 | ||||||
|
Total liabilities
|
6,835,088 | 6,840,705 | ||||||
|
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, 107,733,432 shares and 110,295,117 shares issued, respectively
|
1,078 | 1,103 | ||||||
|
Paid-in-capital
|
793,951 | 824,164 | ||||||
|
Retained earnings
|
529,630 | 523,089 | ||||||
|
Unallocated common stock of Employee Stock Ownership Plan
|
(27,025 | ) | (27,409 | ) | ||||
|
Accumulated other comprehensive loss
|
(10,518 | ) | (13,497 | ) | ||||
|
Total shareholders' equity
|
1,287,116 | 1,307,450 | ||||||
|
Total liabilities and shareholders' equity
|
$ | 8,122,204 | 8,148,155 | |||||
|
Equity to assets
|
15.85 | % | 16.05 | % | ||||
|
Tangible common equity to assets
|
13.99 | % | 14.19 | % | ||||
|
Book value per share
|
$ | 11.94 | $ | 11.85 | ||||
|
Tangible book value per share
|
$ | 10.32 | $ | 10.26 | ||||
|
Closing market price per share
|
$ | 12.54 | $ | 11.78 | ||||
|
Full time equivalent employees
|
1,898 | 1,881 | ||||||
|
Number of banking offices
|
172 | 171 | ||||||
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income - Unaudited
(Dollars in thousands, except per share amounts)
|
Three months ended
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||||||||||||
|
March 31,
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December 31,
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2011
|
2010
|
2010
|
||||||||||
|
Interest income:
|
||||||||||||
|
Loans receivable
|
$ | 80,457 | 80,746 | 83,096 | ||||||||
|
Mortgage-backed securities
|
6,756 | 6,145 | 5,886 | |||||||||
|
Taxable investment securities
|
398 | 998 | 428 | |||||||||
|
Tax-free investment securities
|
3,074 | 2,684 | 3,111 | |||||||||
|
Interest-earning deposits
|
407 | 565 | 496 | |||||||||
|
Total interest income
|
91,092 | 91,138 | 93,017 | |||||||||
|
Interest expense:
|
||||||||||||
|
Deposits
|
16,063 | 21,404 | 17,025 | |||||||||
|
Borrowed funds
|
7,989 | 9,700 | 8,762 | |||||||||
|
Total interest expense
|
24,052 | 31,104 | 25,787 | |||||||||
|
Net interest income
|
67,040 | 60,034 | 67,230 | |||||||||
|
Provision for loan losses
|
7,244 | 8,801 | 13,918 | |||||||||
|
Net interest income after provision for loan losses
|
59,796 | 51,233 | 53,312 | |||||||||
|
Noninterest income:
|
||||||||||||
|
Impairment losses on securities
|
- | (437 | ) | (1,841 | ) | |||||||
|
Noncredit related losses on securities not expected to be sold (recognized in other comprehensive income)
|
- | 340 | 1,006 | |||||||||
|
Net impairment losses
|
- | (97 | ) | (835 | ) | |||||||
|
Gain on sale of investments, net
|
4 | 2,083 | 8 | |||||||||
|
Service charges and fees
|
8,928 | 8,902 | 9,296 | |||||||||
|
Trust and other financial services income
|
1,910 | 1,833 | 1,907 | |||||||||
|
Insurance commission income
|
1,380 | 1,142 | 1,362 | |||||||||
|
Loss on real estate owned, net
|
(27 | ) | (24 | ) | (279 | ) | ||||||
|
Income from bank owned life insurance
|
1,166 | 1,166 | 1,228 | |||||||||
|
Mortgage banking (loss)/ income
|
197 | (8 | ) | 1,423 | ||||||||
|
Other operating income
|
768 | 860 | 1,058 | |||||||||
|
Total noninterest income
|
14,326 | 15,857 | 15,168 | |||||||||
|
Noninterest expense:
|
||||||||||||
|
Compensation and employee benefits
|
25,353 | 25,856 | 25,328 | |||||||||
|
Premises and occupancy costs
|
6,191 | 6,002 | 5,675 | |||||||||
|
Office operations
|
3,100 | 3,237 | 3,233 | |||||||||
|
Processing expenses
|
5,767 | 5,696 | 6,041 | |||||||||
|
Marketing expenses
|
1,959 | 1,443 | 2,930 | |||||||||
|
Federal deposit insurance premiums
|
2,427 | 2,148 | 2,334 | |||||||||
|
Professional services
|
1,256 | 728 | 291 | |||||||||
|
Amortization of intangible assets
|
637 | 782 | 518 | |||||||||
|
Real estate owned expense
|
431 | 899 | 636 | |||||||||
|
Acquisition expense
|
- | - | 591 | |||||||||
|
Other expense
|
2,257 | 1,813 | 3,122 | |||||||||
|
Total noninterest expense
|
49,378 | 48,604 | 50,699 | |||||||||
|
Income before income taxes
|
24,744 | 18,486 | 17,781 | |||||||||
|
Income tax expense
|
7,491 | 5,333 | 5,043 | |||||||||
|
Net income
|
$ | 17,253 | 13,153 | 12,738 | ||||||||
|
Basic earnings per share
|
$ | 0.16 | $ | 0.12 | $ | 0.12 | ||||||
|
Diluted earnings per share
|
$ | 0.16 | $ | 0.12 | $ | 0.12 | ||||||
|
Annualized return on average equity
|
5.39 | % | 4.05 | % | 3.90 | % | ||||||
|
Annualized return on average assets
|
0.86 | % | 0.65 | % | 0.63 | % | ||||||
|
Basic common shares outstanding
|
106,571,262 | 108,378,245 | 108,337,001 | |||||||||
|
Diluted common shares outstanding
|
107,258,320 | 109,052,039 | 108,848,189 | |||||||||
Northwest Bancshares, Inc. and Subsidiaries
Asset quality
(Dollars in thousands)
|
Three months ended
|
Year ended
|
|||||||||||||||
|
March 31,
|
December 31,
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|||||||||||||||
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2011
|
2010
|
2010
|
2009
|
|||||||||||||
|
Allowance for loan losses
|
||||||||||||||||
|
Beginning balance
|
$ | 76,412 | $ | 70,403 | 70,403 | 54,929 | ||||||||||
|
Provision
|
7,244 | 8,801 | 40,486 | 41,847 | ||||||||||||
|
Charge-offs mortgage
|
(1,205 | ) | (625 | ) | (4,497 | ) | (1,437 | ) | ||||||||
|
Charge-offs consumer
|
(3,487 | ) | (1,911 | ) | (10,494 | ) | (7,045 | ) | ||||||||
|
Charge-offs commercial
|
(3,317 | ) | (2,334 | ) | (21,881 | ) | (19,334 | ) | ||||||||
|
Recoveries
|
803 | 502 | 2,395 | 1,443 | ||||||||||||
|
Ending balance
|
$ | 76,450 | $ | 74,836 | 76,412 | 70,403 | ||||||||||
|
Net charge-offs to average loans, annualized
|
0.52 | % | 0.33 | % | 0.63 | % | 0.51 | % | ||||||||
|
March 31,
|
December 31,
|
|||||||||||||||
|
2011
|
2010
|
2010
|
2009
|
|||||||||||||
|
Nonperforming loans
|
$ | 156,158 | $ | 117,239 | 148,391 | 124,626 | ||||||||||
|
Real estate owned, net
|
19,682 | 22,182 | 20,780 | 20,257 | ||||||||||||
|
Nonperforming assets
|
$ | 175,840 | $ | 139,421 | 169,171 | 144,883 | ||||||||||
|
Nonperforming loans to total loans
|
2.85 | % | 2.16 | % | 2.68 | % | 2.35 | % | ||||||||
|
Nonperforming assets to total assets
|
2.16 | % | 1.72 | % | 2.08 | % | 1.81 | % | ||||||||
|
Allowance for loan losses to total loans
|
1.39 | % | 1.38 | % | 1.38 | % | 1.33 | % | ||||||||
|
Allowance for loan losses to nonperforming loans
|
48.96 | % | 63.83 | % | 51.49 | % | 56.49 | % | ||||||||
Northwest Bancshares, Inc. and Subsidiaries
Delinquency
(Dollars in thousands)
Loans past due schedule
(Number of loans and dollar amount of loans)
|
March 31,
|
December 31,
|
|||||||||||||||||||||||||||||||||||
| 2011 | * | 2010 | * | 2009 | * | |||||||||||||||||||||||||||||||
|
Loans past due 30 days to 59 days:
|
||||||||||||||||||||||||||||||||||||
|
One- to four- family residential loans
|
370 | $ | 30,408 | 1.3 | % | 427 | $ | 35,329 | 1.5 | % | 350 | $ | 27,998 | 1.2 | % | |||||||||||||||||||||
|
Consumer loans
|
815 | 8,460 | 0.6 | % | 1,238 | 12,635 | 0.9 | % | 1,100 | 11,226 | 0.8 | % | ||||||||||||||||||||||||
|
Multifamily and commercial RE loans
|
86 | 12,669 | 0.9 | % | 82 | 16,287 | 1.2 | % | 85 | 16,152 | 1.3 | % | ||||||||||||||||||||||||
|
Commercial business loans
|
60 | 12,519 | 2.9 | % | 48 | 6,590 | 1.5 | % | 48 | 3,293 | 0.9 | % | ||||||||||||||||||||||||
|
Total loans past due 30 days to 59 days
|
1,331 | $ | 64,056 | 1.2 | % | 1,795 | $ | 70,841 | 1.3 | % | 1,583 | $ | 58,669 | 1.1 | % | |||||||||||||||||||||
|
Loans past due 60 days to 89 days:
|
||||||||||||||||||||||||||||||||||||
|
One- to four- family residential loans
|
53 | $ | 4,231 | 0.2 | % | 106 | $ | 9,848 | 0.4 | % | 85 | $ | 6,772 | 0.3 | % | |||||||||||||||||||||
|
Consumer loans
|
309 | 3,314 | 0.3 | % | 437 | 4,580 | 0.3 | % | 392 | 3,029 | 0.2 | % | ||||||||||||||||||||||||
|
Multifamily and commercial RE loans
|
35 | 3,322 | 0.2 | % | 39 | 14,365 | 1.1 | % | 35 | 5,811 | 0.5 | % | ||||||||||||||||||||||||
|
Commercial business loans
|
15 | 973 | 0.2 | % | 9 | 1,678 | 0.4 | % | 26 | 2,474 | 0.7 | % | ||||||||||||||||||||||||
|
Total loans past due 60 days to 89 days
|
412 | $ | 11,840 | 0.2 | % | 591 | $ | 30,471 | 0.6 | % | 538 | $ | 18,086 | 0.3 | % | |||||||||||||||||||||
|
Loans past due 90 days or more:
|
||||||||||||||||||||||||||||||||||||
|
One- to four- family residential loans
|
268 | $ | 28,722 | 1.2 | % | 275 | $ | 29,751 | 1.2 | % | 279 | $ | 29,373 | 1.3 | % | |||||||||||||||||||||
|
Consumer loans
|
560 | 12,079 | 0.9 | % | 564 | 12,828 | 0.9 | % | 727 | 12,544 | 0.9 | % | ||||||||||||||||||||||||
|
Multifamily and commercial RE loans
|
177 | 61,561 | 4.5 | % | 181 | 44,965 | 3.3 | % | 199 | 49,594 | 4.0 | % | ||||||||||||||||||||||||
|
Commercial business loans
|
75 | 22,475 | 5.2 | % | 111 | 12,877 | 3.0 | % | 124 | 18,269 | 4.9 | % | ||||||||||||||||||||||||
|
Total loans past due 90 days or more
|
1,080 | $ | 124,837 | 2.3 | % | 1,131 | $ | 100,421 | 1.8 | % | 1,329 | $ | 109,780 | 2.1 | % | |||||||||||||||||||||
* - Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
Northwest Bancshares, Inc. and Subsidiaries
Analysis of loan portfolio by geographic location as of March 31, 2011 - unaudited:
(Dollars in thousands)
Loans outstanding:
|
Mortgage
|
(1) |
Consumer
|
(2) |
Commercial
|
(3) |
Total
|
(4) | |||||||||||||||||||||||||
|
Pennsylvania
|
$ | 1,922,517 | 81.1 | % | 1,144,182 | 86.4 | % | 1,081,517 | 60.3 | % | 4,148,216 | 75.7 | % | |||||||||||||||||||
|
New York
|
159,803 | 6.8 | % | 111,976 | 8.5 | % | 386,762 | 21.5 | % | 658,541 | 12.0 | % | ||||||||||||||||||||
|
Ohio
|
20,166 | 0.9 | % | 14,581 | 1.1 | % | 43,780 | 2.4 | % | 78,527 | 1.4 | % | ||||||||||||||||||||
|
Maryland
|
185,756 | 7.9 | % | 34,845 | 2.6 | % | 147,366 | 8.2 | % | 367,967 | 6.7 | % | ||||||||||||||||||||
|
Florida
|
30,424 | 1.3 | % | 11,339 | 0.9 | % | 63,695 | 3.5 | % | 105,458 | 1.9 | % | ||||||||||||||||||||
|
All other
|
47,495 | 2.0 | % | 6,022 | 0.5 | % | 74,342 | 4.1 | % | 127,859 | 2.3 | % | ||||||||||||||||||||
|
Total
|
$ | 2,366,161 | 100.0 | % | 1,322,945 | 100.0 | % | 1,797,462 | 100.0 | % | 5,486,568 | 100.0 | % | |||||||||||||||||||
(1) - Percentage of total mortgage loans
(2) - Percentage of total consumer loans
(3) - Percentage of total commercial loans
(4) - Percentage of total loans
Loans 90 or more delinquent:
|
Mortgage
|
(5) |
Consumer
|
(6) |
Commercial
|
(7) |
Total
|
(8) | |||||||||||||||||||||||||
|
Pennsylvania
|
$ | 17,039 | 0.9 | % | 9,090 | 0.8 | % | 38,486 | 3.6 | % | 64,615 | 1.6 | % | |||||||||||||||||||
|
New York
|
1,239 | 0.8 | % | 757 | 0.7 | % | 17,149 | 4.4 | % | 19,145 | 2.9 | % | ||||||||||||||||||||
|
Ohio
|
144 | 0.7 | % | 85 | 0.6 | % | - | 0.0 | % | 229 | 0.3 | % | ||||||||||||||||||||
|
Maryland
|
4,760 | 2.6 | % | 1,393 | 4.0 | % | 9,659 | 6.6 | % | 15,812 | 4.3 | % | ||||||||||||||||||||
|
Florida
|
4,725 | 15.5 | % | 718 | 6.3 | % | 10,110 | 15.9 | % | 15,553 | 14.7 | % | ||||||||||||||||||||
|
All other
|
815 | 1.7 | % | 37 | 0.6 | % | 8,631 | 11.6 | % | 9,483 | 7.4 | % | ||||||||||||||||||||
|
Total
|
$ | 28,722 | 1.2 | % | 12,080 | 0.9 | % | 84,035 | 4.7 | % | 124,837 | 2.3 | % | |||||||||||||||||||
(5) - Percentage of mortgage loans in that geographic area
(6) - Percentage of consumer loans in that geographic area
(7) - Percentage of commercial loans in that geographic area
(8) - Percentage of total loans in that geographic area
Northwest Bancshares, Inc. and Subsidiaries
Investment Portfolio
(Dollars in thousands)
Marketable securities available-for-sale as of March 31, 2011:
|
Gross
|
Gross
|
|||||||||||||||
|
unrealized
|
unrealized
|
|||||||||||||||
|
Amortized
|
holding
|
holding
|
Market
|
|||||||||||||
|
cost
|
gains
|
losses
|
value
|
|||||||||||||
|
Debt issued by the U.S. government and agencies:
|
||||||||||||||||
|
Due in one year or less
|
$ | 65 | - | - | 65 | |||||||||||
|
Debt issued by government sponsored enterprises:
|
||||||||||||||||
|
Due in one year or less
|
1,992 | 70 | 2,062 | |||||||||||||
|
Due in one year - five years
|
30,000 | - | - | 30,000 | ||||||||||||
|
Due in five years - ten years
|
6,485 | 467 | - | 6,952 | ||||||||||||
|
Due after ten years
|
9,949 | - | (66 | ) | 9,883 | |||||||||||
|
Equity securities
|
1,860 | 256 | (9 | ) | 2,107 | |||||||||||
|
Municipal securities:
|
||||||||||||||||
|
Due in one year - five years
|
3,959 | 144 | - | 4,103 | ||||||||||||
|
Due in five years - ten years
|
35,902 | 1,125 | - | 37,027 | ||||||||||||
|
Due after ten years
|
168,424 | 1,347 | (4,490 | ) | 165,281 | |||||||||||
|
Corporate trust preferred securities:
|
||||||||||||||||
|
Due in one year - five years
|
500 | - | - | 500 | ||||||||||||
|
Due after ten years
|
25,389 | 203 | (6,505 | ) | 19,087 | |||||||||||
|
Mortgage-backed securities:
|
||||||||||||||||
|
Fixed rate pass-through
|
121,687 | 6,171 | (199 | ) | 127,659 | |||||||||||
|
Variable rate pass-through
|
157,895 | 6,626 | (4 | ) | 164,517 | |||||||||||
|
Fixed rate non-agency CMO
|
12,440 | 78 | (752 | ) | 11,766 | |||||||||||
|
Fixed rate agency CMO
|
117,375 | 1,742 | (331 | ) | 118,786 | |||||||||||
|
Variable rate non-agency CMO
|
2,189 | - | (624 | ) | 1,565 | |||||||||||
|
Variable rate agency CMO
|
277,919 | 3,433 | (376 | ) | 280,976 | |||||||||||
|
Total mortgage-backed securities
|
689,505 | 18,050 | (2,286 | ) | 705,269 | |||||||||||
|
Total marketable securities available-for-sale
|
$ | 974,030 | 21,662 | (13,356 | ) | 982,336 | ||||||||||
Marketable securities held-to-maturity as of March 31, 2011:
|
Gross
|
Gross
|
|||||||||||||||
|
unrealized
|
unrealized
|
|||||||||||||||
|
Amortized
|
holding
|
holding
|
Market
|
|||||||||||||
|
cost
|
gains
|
losses
|
value
|
|||||||||||||
|
Municipal securities:
|
||||||||||||||||
|
Due after ten years
|
$ | 77,840 | 59 | (1,971 | ) | 75,928 | ||||||||||
|
Mortgage-backed securities:
|
||||||||||||||||
|
Fixed rate pass-through
|
28,271 | 389 | (40 | ) | 28,620 | |||||||||||
|
Variable rate pass-through
|
9,705 | 38 | - | 9,743 | ||||||||||||
|
Fixed rate agency CMO
|
177,100 | 1,735 | (1,258 | ) | 177,577 | |||||||||||
|
Variable rate agency CMO
|
21,491 | 368 | - | 21,859 | ||||||||||||
|
Total mortgage-backed securities
|
236,567 | 2,530 | (1,298 | ) | 237,799 | |||||||||||
|
Total marketable securities available-for-sale
|
$ | 314,407 | 2,589 | (3,269 | ) | 313,727 | ||||||||||
|
Issuers of mortgage-backed securities as of March 31, 2011:
|
||||||||||||||||
|
Fannie Mae
|
$ | 351,092 | 8,009 | (920 | ) | 358,181 | ||||||||||
|
Ginnie Mae
|
209,398 | 4,756 | (775 | ) | 213,379 | |||||||||||
|
Freddie Mac
|
328,570 | 7,713 | (506 | ) | 335,777 | |||||||||||
|
Small Business Administration
|
21,638 | 24 | - | 21,662 | ||||||||||||
|
Non-agency
|
15,374 | 78 | (1,383 | ) | 14,069 | |||||||||||
|
Total
|
$ | 926,072 | 20,580 | (3,584 | ) | 943,068 | ||||||||||
Northwest Bancshares, Inc. and Subsidiaries
Municipal Securities Portfolio
(Dollars in thousands)
|
Book
|
As a %
|
|||||||
|
Value
|
of Book
|
|||||||
|
3/31/2011
|
Value
|
|||||||
|
Municipal securities by state:
|
||||||||
|
Pennsylvania
|
||||||||
|
School districts
|
$ | 137,256 | 47.97 | % | ||||
|
General obligations
|
55,831 | 19.51 | % | |||||
|
Revenue bonds
|
15,335 | 5.36 | % | |||||
|
Total Pennsylvania
|
208,422 | 72.84 | % | |||||
|
New York
|
33,923 | 11.86 | % | |||||
|
Ohio
|
6,426 | 2.25 | % | |||||
|
All other states
|
37,354 | 13.05 | % | |||||
| $ | 286,125 | |||||||
Average Balance Sheet - unaudited
(Dollars in thousands)
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
|
Three months ended March 31,
|
||||||||||||||||||||||||
|
2011
|
2010
|
|||||||||||||||||||||||
|
Avg.
|
Avg.
|
|||||||||||||||||||||||
|
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
|
Balance
|
Interest
|
Cost
|
Balance
|
Interest
|
Cost
|
|||||||||||||||||||
|
Assets:
|
||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Loans receivable (a) (b) (d)
|
$ | 5,516,254 | 80,847 | 5.89 | % | $ | 5,346,962 | 81,111 | 6.11 | % | ||||||||||||||
|
Mortgage-backed securities (c)
|
926,349 | 6,756 | 2.92 | % | 736,904 | 6,145 | 3.34 | % | ||||||||||||||||
|
Investment securities (c) (d)
|
354,786 | 5,128 | 5.78 | % | 359,097 | 5,127 | 5.71 | % | ||||||||||||||||
|
FHLB stock
|
58,845 | - | - | 63,242 | - | - | ||||||||||||||||||
|
Other interest-earning deposits
|
685,864 | 407 | 0.24 | % | 946,695 | 565 | 0.24 | % | ||||||||||||||||
|
Total interest-earning assets
|
7,542,098 | 93,138 | 4.96 | % | 7,452,900 | 92,948 | 5.02 | % | ||||||||||||||||
|
Noninterest earning assets (e)
|
592,981 | 597,320 | ||||||||||||||||||||||
|
Total assets
|
$ | 8,135,079 | $ | 8,050,220 | ||||||||||||||||||||
|
Liabilities and shareholders' equity:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Savings accounts
|
$ | 1,063,696 | 1,429 | 0.55 | % | $ | 960,034 | 2,034 | 0.86 | % | ||||||||||||||
|
Interest-bearing demand accounts
|
773,633 | 232 | 0.12 | % | 752,109 | 398 | 0.21 | % | ||||||||||||||||
|
Money market accounts
|
915,768 | 1,155 | 0.51 | % | 840,727 | 1,836 | 0.89 | % | ||||||||||||||||
|
Certificate accounts
|
2,431,952 | 13,247 | 2.21 | % | 2,582,782 | 17,136 | 2.69 | % | ||||||||||||||||
|
Borrowed funds (f)
|
847,784 | 6,584 | 3.15 | % | 900,740 | 8,295 | 3.73 | % | ||||||||||||||||
|
Junior subordinated debentures
|
103,094 | 1,405 | 5.45 | % | 103,094 | 1,405 | 5.45 | % | ||||||||||||||||
|
Total interest-bearing liabilities
|
6,135,927 | 24,052 | 1.59 | % | 6,139,486 | 31,104 | 2.05 | % | ||||||||||||||||
|
Noninterest bearing liabilities
|
701,633 | 611,279 | ||||||||||||||||||||||
|
Total liabilities
|
6,837,560 | 6,750,765 | ||||||||||||||||||||||
|
Shareholders' equity
|
1,297,519 | 1,299,455 | ||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$ | 8,135,079 | $ | 8,050,220 | ||||||||||||||||||||
|
Net interest income/ Interest rate spread
|
69,086 | 3.37 | % | 61,844 | 2.97 | % | ||||||||||||||||||
|
Net interest-earning assets/ Net interest margin
|
$ | 1,406,171 | 3.66 | % | $ | 1,313,414 | 3.32 | % | ||||||||||||||||
|
Ratio of interest-earning assets to interest-bearing liabilities
|
1.23 | X | 1.21 | X | ||||||||||||||||||||
(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, securities sold under agreements to repurchase and other borrowings.
Average Balance Sheet - unaudited
(Dollars in thousands)
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
|
Three months ended March 31,
|
Three months ended December 31,
|
|||||||||||||||||||||||
|
2011
|
2010
|
|||||||||||||||||||||||
|
Avg.
|
Avg.
|
|||||||||||||||||||||||
|
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
|
Balance
|
Interest
|
Cost
|
Balance
|
Interest
|
Cost
|
|||||||||||||||||||
|
Assets:
|
||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Loans receivable (a) (b) (d)
|
$ | 5,516,254 | 80,847 | 5.89 | % | 5,565,989 | 83,491 | 5.99 | % | |||||||||||||||
|
Mortgage-backed securities (c)
|
926,349 | 6,756 | 2.92 | % | 879,958 | 5,886 | 2.68 | % | ||||||||||||||||
|
Investment securities (c) (d)
|
354,786 | 5,128 | 5.78 | % | 365,003 | 5,213 | 5.71 | % | ||||||||||||||||
|
FHLB stock
|
58,845 | - | - | 61,042 | - | - | ||||||||||||||||||
|
Other interest-earning deposits
|
685,864 | 407 | 0.24 | % | 721,174 | 496 | 0.27 | % | ||||||||||||||||
|
Total interest-earning assets
|
7,542,098 | 93,138 | 4.96 | % | 7,593,166 | 95,086 | 5.00 | % | ||||||||||||||||
|
Noninterest earning assets (e)
|
592,981 | 588,945 | ||||||||||||||||||||||
|
Total assets
|
$ | 8,135,079 | 8,182,111 | |||||||||||||||||||||
|
Liabilities and shareholders' equity:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Savings accounts
|
$ | 1,063,696 | 1,429 | 0.55 | % | 1,058,373 | 1,695 | 0.64 | % | |||||||||||||||
|
Interest-bearing demand accounts
|
773,633 | 232 | 0.12 | % | 786,488 | 249 | 0.13 | % | ||||||||||||||||
|
Money market accounts
|
915,768 | 1,155 | 0.51 | % | 906,414 | 1,209 | 0.53 | % | ||||||||||||||||
|
Certificate accounts
|
2,431,952 | 13,247 | 2.21 | % | 2,456,893 | 13,872 | 2.24 | % | ||||||||||||||||
|
Borrowed funds (f)
|
847,784 | 6,584 | 3.15 | % | 892,461 | 7,326 | 3.26 | % | ||||||||||||||||
|
Junior subordinated debentures
|
103,094 | 1,405 | 5.45 | % | 103,094 | 1,436 | 5.45 | % | ||||||||||||||||
|
Total interest-bearing liabilities
|
6,135,927 | 24,052 | 1.59 | % | 6,203,723 | 25,787 | 1.65 | % | ||||||||||||||||
|
Noninterest bearing liabilities
|
701,633 | 671,412 | ||||||||||||||||||||||
|
Total liabilities
|
6,837,560 | 6,875,135 | ||||||||||||||||||||||
|
Shareholders' equity
|
1,297,519 | 1,306,976 | ||||||||||||||||||||||
|
Total liabilities and shareholders' equity
|
$ | 8,135,079 | 8,182,111 | |||||||||||||||||||||
|
Net interest income/ Interest rate spread
|
69,086 | 3.37 | % | 69,299 | 3.35 | % | ||||||||||||||||||
|
Net interest-earning assets/ Net interest margin
|
$ | 1,406,171 | 3.66 | % | 1,389,443 | 3.65 | % | |||||||||||||||||
|
Ratio of interest-earning assets to interest-bearing liabilities
|
1.23 | X | 1.22 | X | ||||||||||||||||||||
(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, securities sold under agreements to repurchase and other borrowings.