Northwest Bancshares (NWBI) 8-K Northwest Bancshares, Inc. Announces Earnings and Dividend Declaration

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 Earnings and Dividend Declaration

Warren, Pennsylvania — January 25, 2010

Northwest Bancshares, Inc. (NasdaqGS: NWBI, formerly NWSB) announced net income for the quarter ended December 31, 2009 of $1.0 million, or $0.01 per diluted share. This represents a decrease of $10.3 million over the same quarter last year when net income was $11.3 million, or $0.10 per diluted share. The annualized returns on average shareholders’ equity and average assets for the current quarter were 0.46% and 0.05% compared to 7.27% and 0.65% for the same quarter last year. In making the announcement, the Company emphasized that current quarter earnings were significantly reduced by the establishment of a charitable foundation in the amount of $13.8 million, in conjunction with the Company’s second-step stock offering.

During the quarter ended December 31, 2009, the Company converted from a partially-public mutual holding company to a fully-public stock holding company by completing a second-step stock offering and selling 68.8 million shares of common stock at $10 per share. As a part of the conversion, Northwest Bancshares, Inc. contributed $1.0 million of the offering proceeds and issued 1.3 million shares of common stock to a charitable foundation for the benefit of the communities in which it operates. The Company recognized a pre-tax expense of $13.8 million during the quarter as a result of this contribution.

In addition to the 68.8 million common shares sold in the offering, the Company exchanged 40.5 million common shares of Northwest Bancshares, Inc. for the 18.0 million common shares of Northwest Bancorp, Inc. that were owned by the public prior to the conversion. This represents an exchange ratio of 2.25 to 1. As a result, the Company had 110.6 million shares of common stock outstanding as of December 31, 2009.

Also contributing to the decrease in quarterly earnings was a significant increase in the provision for loan losses, which was $14.5 million for the quarter ended December 31, 2009 compared to $10.2 million in the same quarter a year ago. This increase in the provision was considered necessary given current economic conditions and the stress placed on the Company’s borrowers. The Company noted, however, that actual loan charge-offs for the quarter were only $11.9 million.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share payable on February 18, 2010, to shareholders of record as of February 4, 2010. This represents the 61st consecutive quarter in which the Company has paid a cash dividend. Shareholders who owned Northwest shares prior to the second-step conversion now own 2.25 new shares for each share they owned prior to the conversion, and the total dividends they will receive from those shares this quarter will be slightly higher than they were last quarter.

In looking at the various components of quarterly income, the Company noted that net interest income decreased by $1.5 million, or 2.5%, for the quarter ended December 31, 2009 compared to the same quarter last year as a result of a decrease in net interest margin to 3.45% from 3.83%. The decrease in net interest margin resulted primarily from the Company carrying, on average, $458.4 million more in overnight funds than in the previous year’s quarter earning an average rate of 0.19% compared to an average rate of 0.87% in the previous year. The increase in overnight funds was primarily attributable to the substantial increase in deposits experienced over the past several quarters as well as the additional capital received from the second-step common stock offering. These funds are temporarily being invested in overnight funds until they can be deployed to purchase investment securities and to fund loans.

Noninterest expense increased by $20.8 million, or 47.8%, to $64.2 million for the quarter ended December 31, 2009 from $43.5 million for the quarter ended December 31, 2008 primarily due to increases in compensation and employee benefit costs, FDIC insurance assessments and marketing expenses as well as the funding of the charitable foundation. Compensation and employee benefits increased by $2.2 million, or 9.5%, as the Company made an ESOP contribution of $3.1 million to benefit all Northwest employees in connection with the completion of the second-step conversion offering. Federal deposit insurance premiums increased by $1.1 million, or 110.6%, due to increases in both the Company’s deposits and the rate charged by the FDIC. Marketing expenses increased by $2.2 million, or 114.4%, to $4.1 million for the quarter ended December 31, 2009 from $1.9 million for the quarter ended December 31, 2008 as a result of the initiation of a major campaign focused on the acquisition of checking account relationships.

Net income for the year ended December 31, 2009 of $32.7 million, or $0.30 per diluted share, represents a decrease of $15.5 million, or 32.2% compared to net income of $48.2 million, or $0.44 per diluted share, for the year ended December 31, 2008. This decrease resulted primarily from the Company recording a provision for loan losses which was $19.0 million, or 83.1%, higher than the previous year. The increase in the provision was considered necessary given the current economic environment. Also contributing to the decrease in income was the previously mentioned $13.8 million charitable contribution and a $3.3 million special assessment by the FDIC. Partially offsetting these reductions in net income was a $9.3 million, or 4.2%, increase in net interest income and a $14.6 million, or 37.6%, increase in noninterest income. Included in the increase in noninterest income was a $3.5 million gain recognized as part of the acquisition of Keystone State Savings Bank, which occurred October 23, 2009. The annualized returns on average shareholders’ equity and average assets were 4.71% and 0.46%, respectively, for the current year compared to 7.75% and 0.70%, respectively, for the prior year.

Founded in 1896 and headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc., through its subsidiary Northwest Savings Bank, currently operates 171 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 51 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.

# # #

Forward-Looking Statements — This press 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,			December 31,
	2009			2008
Assets
Cash and cash equivalents	$	69,265			55,815
Interest-earning deposits in other financial institutions		1,037,893			16,795
Federal funds sold and other short-term investments		632			7,312
Marketable securities available-for-sale (amortized cost of $1,059,177 and $1,144,435)		1,067,089			1,139,170
Total cash, interest-earning deposits and marketable securities		2,174,879			1,219,092
Loans held for sale		1,164			18,738
Mortgage loans -one- to four-family		2,334,538			2,447,506
Home equity loans		1,067,584			1,013,876
Consumer loans		286,292			289,602
Commercial real estate loans		1,238,217			1,071,182
Commercial business loans		371,670			355,917
Total loans receivable		5,299,465			5,196,821
Allowance for loan losses		(70,403	)		(54,929	)
Loans receivable, net		5,229,062			5,141,892
Federal Home Loan Bank stock, at cost		63,242			63,143
Accrued interest receivable		25,780			27,252
Real estate owned, net		20,257			16,844
Premises and Equipment, net		124,316			115,842
Bank owned life insurance		128,270			123,479
Goodwill		171,363			171,363
Other intangible assets		4,678			7,395
Other assets		83,451			43,939
Total assets	$	8,025,298			6,930,241
Liabilities and Shareholders’ equity
Liabilities:
Noninterest-bearing demand deposits	$	487,036			394,011
Interest-bearing demand deposits		768,110			706,120
Savings deposits		1,744,537			1,480,620
Time deposits		2,624,741			2,457,460
Total deposits		5,624,424			5,038,211
Borrowed funds		897,326			1,067,945
Advances by borrowers for taxes and insurance		22,034			26,190
Accrued interest payable		4,493			5,194
Other liabilities		57,412			70,663
Junior subordinated debentures		103,094			108,254
Total liabilities		6,708,783			6,316,457
Shareholders’ equity:
Preferred stock, $0.01 par value and $0.10 par value, respectively:
50,000,000 shares authorized, no shares issued		—			—
Common stock, $0.01 par value: 500,000,000 shares authorized, 110,641,858 shares issued		1,106			—
Common stock, $0.10 par value: 500,000,000 shares authorized, 51,244,974 shares issued		—			5,124
Paid-in-capital		828,195			218,332
Retained earnings		508,842			490,326
Unallocated common stock of Employee Stock Ownership Plan		(11,651	)		—
Accumulated other comprehensive loss		(9,977	)		(30,575	)
Treasury stock of -0- and 2,742,800 shares, at cost		—			(69,423	)
Total shareholders’ equity		1,316,515			613,784
Total liabilities and shareholders’ equity	$	8,025,298			6,930,241
Equity to assets		16.40	%		8.86	%
Tangible common equity to assets		14.53	%		6.36	%
Book value per share*	$	11.90		$	5.62	*
Tangible book value per share*	$	10.31		$	3.93	*
Closing market price per share*	$	11.27		$	9.50	*
Full time equivalent employees		1,867			1,860
Number of banking offices		171			167

* - Adjusted for 2.25 to 1 exchange rate.

Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)

	Three months ended						Year ended
	December 31,						December 31,
	2009			2008			2009			2008
Interest income:
Loans receivable	$	80,322			83,161			320,121			327,128
Mortgage-backed securities		6,405			8,830			27,263			34,694
Taxable investment securities		1,246			2,102			5,384			11,828
Tax-free investment securities		2,678			3,032			11,054			12,253
Interest-earning deposits		226			42			641			2,756
Total interest income		90,877			97,167			364,463			388,659
Interest expense:
Deposits		22,839			27,259			95,394			137,061
Borrowed funds		9,994			10,405			40,412			32,232
Total interest expense		32,833			37,664			135,806			169,293
Net interest income		58,044			59,503			228,657			219,366
Provision for loan losses		14,500			10,212			41,847			22,851
Net interest income after provision for loan losses		43,544			49,291			186,810			196,515
Noninterest income:
Impairment losses on securities		(5,920	)		(3,653	)		(12,408	)		(16,004	)
Noncredit related losses on securities not expected to be sold (recognized in other comprehensive income)		5,004			—			6,311			—
Net impairment losses		(916	)		(3,653	)		(6,097	)		(16,004	)
Gain on sale of investments, net		26			2,199			403			6,037
Service charges and fees		9,343			8,337			34,811			32,432
Trust and other financial services income		1,958			1,491			6,307			6,718
Insurance commission income		619			619			2,658			2,376
Gain/ (loss) on sale of real estate owned, net		(120	)		11			(4,054	)		(428	)
Income from bank owned life insurance		1,195			1,213			4,791			4,797
Mortgage banking income		702			12			5,594			665
Non-cash recovery/ (impairment) of MSRs		290			(2,330	)		1,840			(2,165	)
Gain on bargain purchase		3,503			—			3,503			—
Other operating income		695			1,366			3,581			4,324
Total noninterest income		17,295			9,265			53,337			38,752
Noninterest expense:
Compensation and employee benefits		25,637			23,408			95,594			91,129
Premises and occupancy costs		5,442			5,400			21,963			21,924
Office operations		3,372			3,185			12,947			13,237
Processing expenses		5,829			4,861			21,312			18,652
Marketing expenses		4,106			1,915			9,152			5,500
Federal deposit insurance premiums		2,148			1,020			8,309			3,884
FDIC Special Assessment		—			—			3,288			—
Professional services		691			668			2,590			2,582
Amortization of intangible assets		649			848			3,020			4,387
Loss on early extinguishment of debt		—			—			—			705
Contribution to charitable foundation		13,822			—			13,822			—
Other expense		2,541			2,169			8,497			8,128
Total noninterest expense		64,237			43,474			200,494			170,128
(Loss)/ income before income taxes		(3,398	)		15,082			39,653			65,139
Income tax (benefit)/ expense		(4,404	)		3,798			7,000			16,968
Net income	$	1,006			11,284			32,653			48,171
Basic earnings per share		0.01		$	0.10	*	$	0.30		$	0.44	*
Diluted earnings per share		0.01		$	0.10	*	$	0.30		$	0.44	*
Annualized return on average equity		0.46	%		7.27	%		4.71	%		7.75	%
Annualized return on average assets		0.05	%		0.65	%		0.46	%		0.70	%
Basic common shares outstanding		109,286,606			108,873,585	*		109,078,129			108,815,648	*
Diluted common shares outstanding		109,820,238			109,346,564	*		109,459,875			109,346,454	*

* - Adjusted for 2.25 to 1 exchange ratio.

Northwest Bancshares, Inc. and Subsidiaries
Supplementary data
(Dollars in thousands)

	Three months ended						Year ended
	December 31,						December 31,
	2009			2008			2009			2008
Allowance for loan losses
Beginning balance	$	67,775			47,924			54,929			41,784
Provision		14,500			10,212			41,847			22,851
Charge-offs mortgage		(137	)		(332	)		(1,437	)		(1,513	)
Charge-offs consumer		(2,530	)		(1,739	)		(7,045	)		(6,607	)
Charge-offs commercial		(9,633	)		(1,425	)		(19,334	)		(3,490	)
Recoveries		428			289			1,443			1,904
Ending balance	$	70,403			54,929			70,403			54,929
Net charge-offs to average loans, annualized		0.91	%		0.25	%		0.51	%		0.19	%

	December 31,
	2009			2008			2007			2006
Nonperforming loans	$	124,626			99,203			49,610			40,525
Real estate owned, net		20,257			16,844			8,667			6,653
Nonperforming assets	$	144,883			116,047			58,277			47,178
Nonperforming loans to total loans		2.35	%		1.91	%		1.03	%		0.91	%
Nonperforming assets to total assets		1.81	%		1.67	%		0.87	%		0.72	%
Allowance for loan losses to total loans		1.33	%		1.06	%		0.86	%		0.85	%
Allowance for loan losses to nonperforming loans		56.49	%		55.37	%		84.22	%		92.92	%

Northwest Bancshares, Inc. and Subsidiaries
Supplementary data
(Dollars in thousands)

Loans past due schedule

     (Number of loans and dollar amount of loans)

	December 31,
	2009				*			2008				*			2007				*
Loans past due 30 days to 59 days:
One- to four-family residential loans		350	$	27,998		1.2	%		392	$	32,988		1.3	%		361	$	27,270		1.1	%
Consumer loans		1,100		11,226		0.8	%		1,157		11,295		0.9	%		1,331		10,550		0.8	%
Multifamily and commercial RE loans		85		16,152		1.3	%		99		18,901		1.8	%		88		11,331		1.3	%
Commercial business loans		48		3,293		0.9	%		86		7,700		2.2	%		70		9,947		3.0	%
Total loans past due 30 days to 59 days		1,583	$	58,669		1.1	%		1,734	$	70,884		1.4	%		1,850	$	59,098		1.2	%
Loans past due 60 days to 89 days:
One- to four-family residential loans		85	$	6,772		0.3	%		101	$	7,599		0.3	%		99	$	6,077		0.3	%
Consumer loans		392		3,029		0.2	%		379		2,836		0.2	%		437		2,676		0.2	%
Multifamily and commercial RE loans		35		5,811		0.5	%		54		8,432		0.8	%		41		4,984		0.6	%
Commercial business loans		26		2,474		0.7	%		45		3,801		1.1	%		34		2,550		0.8	%
Total loans past due 60 days to 89 days		538	$	18,086		0.3	%		579	$	22,668		0.4	%		611	$	16,287		0.3	%
Loans past due 90 days or more:
One- to four-family residential loans		279	$	29,373		1.3	%		223	$	20,435		0.8	%		193	$	12,542		0.5	%
Consumer loans		727		12,544		0.9	%		687		9,756		0.7	%		744		7,582		0.6	%
Multifamily and commercial RE loans		199		49,594		4.0	%		155		43,828		4.1	%		105		24,323		2.9	%
Commercial business loans		124		18,269		4.9	%		114		25,184		7.1	%		84		5,163		1.6	%
Total loans past due 90 days or more		1,329	$	109,780		2.1	%		1,179	$	99,203		1.9	%		1,126	$	49,610		1.0	%

* - 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 December 31, 2009:
(Dollars in thousands)

Loans outstanding:

	Mortgage		(1)			Consumer		(2)			Commercial		(3)			Total		(4)
Pennsylvania	$	1,913,127		81.9	%		1,189,667		87.9	%		1,057,995		65.7	%		4,160,789		78.4	%
New York		136,729		5.9	%		98,870		7.3	%		302,145		18.8	%		537,744		10.1	%
Ohio		24,973		1.1	%		17,048		1.3	%		43,338		2.7	%		85,359		1.6	%
Maryland		232,146		9.9	%		39,227		2.9	%		157,262		9.8	%		428,635		8.1	%
Florida		28,727		1.2	%		9,064		0.7	%		49,147		3.1	%		86,938		1.6	%
Total	$	2,335,702		100.0	%		1,353,876		100.0	%		1,609,887		100.0	%		5,299,465		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 past due:

	Mortgage		(5)			Consumer		(6)			Commercial		(7)			Total		(8)
Pennsylvania	$	21,683		1.1	%		9,571		0.8	%		46,649		4.4	%		77,903		1.9	%
New York		386		0.3	%		230		0.2	%		1,040		0.3	%		1,656		0.3	%
Ohio		196		0.8	%		78		0.5	%		496		1.1	%		770		0.9	%
Maryland		702		0.3	%		1,000		2.5	%		11,942		7.6	%		13,644		3.2	%
Florida		6,406		22.3	%		1,665		18.4	%		7,736		15.7	%		15,807		18.2	%
Total	$	29,373		1.3	%		12,544		0.9	%		67,863		4.2	%		109,780		2.1	%

(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
Supplementary data
(Dollars in thousands)

			Gross		Gross
			unrealized		unrealized
	Amortized		holding		holding			Market
	cost		gains		losses			value
Marketable securities available-for-sale as of December 31, 2009:
Debt issued by the U.S. government and agencies:
Due in one year or less	$	76		—		(1	)		75
Debt issued by government sponsored enterprises:
Due in one year — five years		1,977		153		—			2,130
Due in five years — ten years		21,912		524		—			22,436
Due after ten years		52,667		1,128		(498	)		53,297
Equity securities		1,054		191		(118	)		1,127
Municipal securities:
Due in one year — five years		3,146		68		—			3,214
Due in five years — ten years		41,170		1,163		—			42,333
Due after ten years		190,812		2,774		(1,677	)		191,909
Corporate trust preferred securities:
Due in one year — five years		500		—		—			500
Due after ten years		26,882		168		(10,549	)		16,501
Mortgage-backed securities:
Fixed rate pass-through		145,363		6,440		(47	)		151,756
Variable rate pass-through		231,232		7,894		(85	)		239,041
Fixed rate non-agency CMO		18,698		48		(1,567	)		17,179
Fixed rate agency CMO		19,994		982		—			20,976
Variable rate non-agency CMO		9,296		—		(1,391	)		7,905
Variable rate agency CMO		294,398		2,642		(330	)		296,710
Total mortgage-backed securities		718,981		18,006		(3,420	)		733,567
Total marketable securities available-for-sale	$	1,059,177		24,175		(16,263	)		1,067,089
Issuers of mortgage-backed securities as of December 31, 2009:
Fannie Mae	$	250,145		7,202		(366	)		256,981
Ginnie Mae		124,455		1,726		(17	)		126,164
Freddie Mac		315,606		9,029		(73	)		324,562
Non-agency		28,775		49		(2,964	)		25,860
Total	$	718,981		18,006		(3,420	)		733,567

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

	Three months ended December 31,
	2009							2008
					Avg.							Avg.
	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
ASSETS:
Interest-earning assets:
Loans receivable (a) (b) (d)	$	5,242,823		80,160		6.13	%		5,161,835		83,554		6.42	%
Mortgage-backed securities (c)		744,755		6,405		3.44	%		761,155		8,830		4.64	%
Investment securities (c) (d) (e)		349,309		5,365		6.14	%		421,417		6,452		6.12	%
FHLB stock		63,216		—		0.00	%		60,969		314		2.06	%
Other interest-earning deposits		477,269		226		0.19	%		18,846		42		0.87	%
Total interest-earning assets		6,877,372		92,156		5.37	%		6,424,222		99,192		6.13	%
Noninterest earning assets (f)		669,511							496,051
TOTAL ASSETS	$	7,546,883							6,920,273
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Interest-bearing liabilities:
Savings accounts	$	934,213		1,852		0.79	%		779,238		2,272		1.16	%
Interest-bearing demand accounts		755,158		434		0.23	%		722,807		1,305		0.72	%
Money market accounts		805,347		1,768		0.87	%		708,655		2,976		1.67	%
Certificate accounts		2,604,329		18,785		2.86	%		2,452,075		20,706		3.35	%
Borrowed funds (g)		899,711		8,558		3.77	%		1,009,931		9,013		3.54	%
Junior subordinated debentures		103,094		1,436		5.45	%		108,260		1,392		5.03	%
Total interest-bearing liabilities		6,101,852		32,833		2.13	%		5,780,966		37,664		2.58	%
Noninterest bearing liabilities		569,269							518,031
Total liabilities		6,671,121							6,298,997
Shareholders’ equity		875,762							621,276
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	7,546,883							6,920,273
Net interest income/ Interest rate spread				59,323		3.24	%				61,528		3.55	%
Net interest-earning assets/ Net interest margin	$	775,520				3.45	%		643,256				3.83	%
Ratio of interest-earning assets to interest-bearing liabilities		1.13X							1.11X

(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 Fannie Mae and Freddie Mac stock
(f)	Average balances include the effect of unrealized gains or losses on securities held as available-for-sale
(g)	Average balances include FHLB borrowings, securities sold under agreements to repurchase and other borrowings

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,
	2009							2008
					Avg.							Avg.
	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
ASSETS:
Interest-earning assets:
Loans receivable (a) (b) (d)	$	5,199,829		321,764		6.17	%		5,016,694		328,687		6.50	%
Mortgage-backed securities (c)		720,683		27,263		3.78	%		732,281		34,694		4.74	%
Investment securities (c) (d) (e)		360,620		22,390		6.21	%		478,933		29,250		6.11	%
FHLB stock		63,162		—		0.00	%		48,167		1,428		2.96	%
Other interest-earning deposits		297,228		641		0.21	%		104,895		2,756		2.59	%
Total interest-earning assets		6,641,522		372,058		5.59	%		6,380,970		396,815		6.18	%
Noninterest earning assets (f)		523,038							488,579
TOTAL ASSETS	$	7,164,560							6,869,549
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Interest-bearing liabilities:
Savings accounts	$	850,707		6,501		0.76	%		778,341		9,159		1.18	%
Interest-bearing demand accounts		739,102		2,536		0.34	%		732,097		6,434		0.88	%
Money market accounts		752,166		8,471		1.13	%		720,713		14,726		2.04	%
Certificate accounts		2,546,867		77,886		3.06	%		2,716,815		106,742		3.93	%
Borrowed funds (g)		936,571		34,578		3.69	%		718,657		26,893		3.74	%
Junior subordinated debentures		105,672		5,834		5.45	%		108,287		5,339		4.86	%
Total interest-bearing liabilities		5,931,085		135,806		2.29	%		5,774,910		169,293		2.93	%
Noninterest bearing liabilities		540,536							473,410
Total liabilities		6,471,621							6,248,320
Shareholders’ equity		692,939							621,229
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	7,164,560							6,869,549
Net interest income/ Interest rate spread				236,252		3.30	%				227,522		3.25	%
Net interest-earning assets/ Net interest margin	$	710,437				3.56	%		606,060				3.57	%
Ratio of interest-earning assets to interest-bearing liabilities		1.12X							1.10X

(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 Fannie Mae and Freddie Mac stock.
(f)	Average balances include the effect of unrealized gains or losses on securities held as available-for-sale
(g)	Average balances include FHLB borrowings, securities sold under agreements to repurchase and other borrowings