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 Third Quarter
2010 Earnings and Dividend Declaration
Warren, Pennsylvania – October 25, 2010
Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2010 of $15.5 million, or $0.14 per diluted share. This represents an increase of $3.4 million over the same quarter last year when net income was $12.1 million, or $0.11 per diluted share, and a decrease of $650,000 compared to the quarter ended June 30, 2010 when net income was $16.1 million, or $0.15 per diluted share. The annualized returns on average shareholders’ equity and average assets for the current quarter were 4.72% and 0.76% compared to 7.48% and 0.68% for the same quarter last year and 4.95% and 0.79% for the quarter ended June 30, 2010.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share payable on November 18, 2010, to shareholders of record as of November 4, 2010. This represents the 64th consecutive quarter in which the Company has paid a cash dividend.
In making this announcement, William J. Wagner, President and CEO, noted, “We are pleased to report another quarter of solid earnings despite the challenges of the current economic and interest rate environment. During the quarter, our net interest margin improved to 3.63% from 3.47% for the prior quarter and 3.54% for the same quarter last year. Other components of income remained relatively stable and our earnings were fairly consistent with the previous quarter. Our financial division was successful in restructuring $695.0 million of FHLB borrowings, extending the average maturities of these borrowings by almost four years, while reducing interest cost by approximately $1.0 million annually. Finally, we experienced strong lending and deposit growth. Loans increased by $47.6 million for the quarter and $293.0 million year-to-date while deposits increased $40.0 million for the quarter and $144.5 million year-to-date. Most encouraging was our growth in non-interest bearing checking accounts of $21.0 million for the quarter and $68.5 million year-to-date.”
Net interest income increased by $9.9 million, or 17.3%, to $66.7 million for the quarter ended September 30, 2010, from $56.8 million for the quarter ended September 30, 2009, which was primarily attributable to an increase in interest income from loans receivable and a decrease in the cost of deposits. Interest income on loans receivable increased by $3.7 million, or 4.7%, to $83.4 million as the Company’s average outstanding loans increased by $400.8 million, or 7.8%. Interest expense on deposits decreased by $5.7 million, or 24.3%, to $17.8 million as a result of a decrease in market interest rates and a continued change in the mix of deposits as lower-cost transaction accounts grew more rapidly than other types of deposits.
The provision for loan losses increased by $41,000, or 0.4%, to $9.9 million for the quarter ended September 30, 2010, from $9.8 million a year ago. As of September 30, 2010, the allowance for loan losses was $77.2 million, or 1.38% of total loans, compared to $67.8 million, or 1.32% of total loans, as of September 30, 2009. Loans 90 days or more delinquent were $103.5 million as of September 30, 2010, compared to $117.1 million as of September 30, 2009.
Noninterest income decreased by $157,000, or 1.1%, to $13.8 million for the quarter ended September 30, 2010, from $14.0 million for the quarter ended September 30, 2009. The Company recorded other-than-temporary impairment on investment securities of $392,000 for the quarter ended September 30, 2010 compared to $891,000 for the comparable quarter in 2009 as the fair value of the investment portfolio has increased over the past year. Mortgage banking income decreased from $1.3 million last year, to $752,000 for the quarter ended September 30, 2010 as a result of the Company significantly decreasing the percentage of mortgage loans that were sold into the secondary market. Service charges and fees increased by $938,000, or 10.6%, to $9.8 million for the quarter ended September 30, 2010 primarily as a result of loan production and an increase in the types of deposit accounts which typically generate fees. Also making a positive contribution to noninterest income was insurance commission income which increased by $662,000, or 90.6%, to $1.4 million for the quarter ended September 30, 2010 due to the acquisition of Veracity Benefits Design, Inc., an employee benefits firm specializing in services to employer and employee groups. Partially offsetting these increases was a write-down of real estate owned, which increased to $2.0 million for the quarter ended September 30, 2010, from $62,000 for the quarter ended September 30, 2009. This increase was primarily the result of a write-down on a parcel of property located in south Florida due to further deterioration of the market value of the property.
Noninterest expense increased by $4.0 million, or 9.0%, to $49.0 million for the quarter ended September 30, 2010, from $45.0 million in the prior year. This increase is primarily a result of increases in compensation and employee benefits, office operations, processing expenses and professional services. Compensation and employee benefits expenses increased by $1.3 million, or 5.5%, to $24.6 million for the quarter ended September 30, 2010. This increase is primarily attributable to an increase in health insurance expense and the expense of the employee stock ownership plan. Office operations expense increased by $1.2 million, to $4.5 million for the quarter ended September 30, 2010. This increase was entirely due to a large check kiting fraud. Processing expenses increased by $642,000, to $5.9 million for the quarter ended September 30, 2010. This increase is primarily due to the additional costs associated with annual software maintenance and software license fees. Professional services increased by $458,000, to $1.1 million for the quarter ended September 30, 2010. This increase is primarily a result of additional consulting fees related to bank compliance programs and fees associated with the restructuring of our FHLB borrowings.
Net income for the nine-month period ended September 30, 2010 of $44.8 million, or $0.41 per diluted share, represents an increase of $13.2 million, or 41.5% compared to net income of $31.6 million, or $0.29 per diluted share, for the nine-month period ended September 30, 2009. The annualized returns on average shareholders’ equity and average assets were 4.57% and 0.74%, respectively, for the current nine-month period compared to 6.68% and 0.60%, respectively, in 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 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.
# # #
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) |
| (Unaudited) | ||||||||
| September 30, | December 31, | |||||||
| Assets | 2010 | 2009 | ||||||
| Cash and cash equivalents | $ | 113,477 | 69,265 | |||||
| Interest-earning deposits in other financial institutions | 561,634 | 1,037,893 | ||||||
| Federal funds sold and other short-term investments | 632 | 632 | ||||||
| Marketable securities available-for-sale (amortized cost of $862,747 and $1,059,177) | 884,158 | 1,067,089 | ||||||
| Marketable securities held-to-maturity (fair value of $409,784 and $0) | 399,324 | - | ||||||
| Total cash, interest-earning deposits and marketable securities | 1,959,225 | 2,174,879 | ||||||
| Loans held for sale | 18,020 | 1,164 | ||||||
| Mortgage loans - one- to four- family | 2,451,848 | 2,334,538 | ||||||
| Home equity loans and lines of credit | 1,102,252 | 1,067,584 | ||||||
| Consumer loans | 263,717 | 286,292 | ||||||
| Commercial real estate loans | 1,356,051 | 1,238,217 | ||||||
| Commercial business loans | 400,574 | 371,670 | ||||||
| Total loans receivable | 5,592,462 | 5,299,465 | ||||||
| Allowance for loan losses | (77,245 | ) | (70,403 | ) | ||||
| Loans receivable, net | 5,515,217 | 5,229,062 | ||||||
| Federal Home Loan Bank stock, at cost | 63,242 | 63,242 | ||||||
| Accrued interest receivable | 27,590 | 25,780 | ||||||
| Real estate owned, net | 22,998 | 20,257 | ||||||
| Premises and Equipment, net | 126,999 | 124,316 | ||||||
| Bank owned life insurance | 131,009 | 128,270 | ||||||
| Goodwill | 171,682 | 171,363 | ||||||
| Other intangible assets | 4,419 | 4,678 | ||||||
| Other assets | 120,404 | 83,451 | ||||||
| Total assets | $ | 8,142,785 | 8,025,298 | |||||
| Liabilities and Shareholders' equity | ||||||||
| Liabilities | ||||||||
| Noninterest-bearing demand deposits | $ | 555,491 | 487,036 | |||||
| Interest-bearing demand deposits | 783,749 | 768,110 | ||||||
| Savings deposits | 1,977,249 | 1,744,537 | ||||||
| Time deposits | 2,452,451 | 2,624,741 | ||||||
| Total deposits | 5,768,940 | 5,624,424 | ||||||
| Borrowed funds | 876,068 | 897,326 | ||||||
| Advances by borrowers for taxes and insurance | 12,698 | 22,034 | ||||||
| Accrued interest payable | 1,725 | 4,493 | ||||||
| Other liabilities | 65,038 | 57,412 | ||||||
| Junior subordinated debentures | 103,094 | 103,094 | ||||||
| Total liabilities | 6,827,563 | 6,708,783 | ||||||
| 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, 110,806,418 shares | ||||||||
| and 110,641,858 shares issued, respectively | 1,108 | 1,106 | ||||||
| Paid-in-capital | 829,929 | 828,195 | ||||||
| Retained earnings | 520,419 | 508,842 | ||||||
| Unallocated common stock of Employee Stock Ownership Plan | (28,851 | ) | (11,651 | ) | ||||
| Accumulated other comprehensive loss | (7,383 | ) | (9,977 | ) | ||||
| Total shareholders' equity | 1,315,222 | 1,316,515 | ||||||
| Total liabilities and shareholders' equity | $ | 8,142,785 | 8,025,298 | |||||
| Equity to assets | 16.15 | % | 16.40 | % | ||||
| Tangible common equity to assets | 14.30 | % | 14.53 | % | ||||
| Book value per share | $ | 11.87 | $ | 11.90 | ||||
| Tangible book value per share | $ | 10.28 | $ | 10.31 | ||||
| Closing market price per share | $ | 11.18 | $ | 11.27 | ||||
| Full time equivalent employees | 1,879 | 1,867 | ||||||
| Number of banking offices | 171 | 171 | ||||||
| Northwest Bancshares, Inc. and Subsidiaries |
| Consolidated Statements of Income - Unaudited |
| (Dollars in thousands, except per share amounts) |
| Three months ended | ||||||||||||
| September 30, | June 30, | |||||||||||
| 2010 | 2009 | 2010 | ||||||||||
| Interest income: | ||||||||||||
| Loans receivable | 83,372 | 79,637 | 81,734 | |||||||||
| Mortgage-backed securities | 6,534 | 6,580 | 6,706 | |||||||||
| Taxable investment securities | 489 | 1,242 | 599 | |||||||||
| Tax-free investment securities | 3,090 | 2,716 | 2,853 | |||||||||
| Interest-earning deposits | 524 | 253 | 512 | |||||||||
| Total interest income | 94,009 | 90,428 | 92,404 | |||||||||
| Interest expense: | ||||||||||||
| Deposits | 17,772 | 23,472 | 18,973 | |||||||||
| Borrowed funds | 9,587 | 10,114 | 9,704 | |||||||||
| Total interest expense | 27,359 | 33,586 | 28,677 | |||||||||
| Net interest income | 66,650 | 56,842 | 63,727 | |||||||||
| Provision for loan losses | 9,871 | 9,830 | 7,896 | |||||||||
| Net interest income after provision | ||||||||||||
| for loan losses | 56,779 | 47,012 | 55,831 | |||||||||
| Noninterest income: | ||||||||||||
| Impairment losses on securities | (1,830 | ) | (3,727 | ) | (1,824 | ) | ||||||
| Noncredit related losses on securities not expected | ||||||||||||
| to be sold (recognized in other comprehensive income) | 1,438 | 2,836 | 1,606 | |||||||||
| Net impairment losses | (392 | ) | (891 | ) | (218 | ) | ||||||
| Gain on sale of investments, net | 17 | 97 | 94 | |||||||||
| Service charges and fees | 9,821 | 8,883 | 9,902 | |||||||||
| Trust and other financial services income | 1,600 | 1,496 | 1,912 | |||||||||
| Insurance commission income | 1,393 | 731 | 1,293 | |||||||||
| Loss on real estate owned, net | (2,014 | ) | (62 | ) | (255 | ) | ||||||
| Income from bank owned life insurance | 1,212 | 1,208 | 1,474 | |||||||||
| Mortgage banking income | 752 | 1,328 | 29 | |||||||||
| Other operating income | 1,439 | 1,195 | 1,314 | |||||||||
| Total noninterest income | 13,828 | 13,985 | 15,545 | |||||||||
| Noninterest expense: | ||||||||||||
| Compensation and employee benefits | 24,565 | 23,292 | 24,960 | |||||||||
| Premises and occupancy costs | 5,648 | 5,319 | 5,340 | |||||||||
| Office operations | 4,460 | 3,270 | 2,934 | |||||||||
| Processing expenses | 5,863 | 5,221 | 5,552 | |||||||||
| Marketing expenses | 2,208 | 2,102 | 3,294 | |||||||||
| Federal deposit insurance premiums | 2,424 | 2,381 | 2,148 | |||||||||
| Professional services | 1,126 | 668 | 583 | |||||||||
| Amortization of intangible assets | 725 | 701 | 759 | |||||||||
| Real estate owned expense | 654 | 838 | 712 | |||||||||
| Other expense | 1,375 | 1,195 | 1,875 | |||||||||
| Total noninterest expense | 49,048 | 44,987 | 48,157 | |||||||||
| Income before income taxes | 21,559 | 16,010 | 23,219 | |||||||||
| Income tax expense | 6,068 | 3,956 | 7,078 | |||||||||
| Net income | 15,491 | 12,054 | 16,141 | |||||||||
| Basic earnings per share | $ | 0.14 | $ | 0.11 | * | $ | 0.15 | |||||
| Diluted earnings per share | $ | 0.14 | $ | 0.11 | * | $ | 0.15 | |||||
| Annualized return on average equity | 4.72 | % | 7.48 | % | 4.95 | % | ||||||
| Annualized return on average assets | 0.76 | % | 0.68 | % | 0.79 | % | ||||||
| Basic common shares outstanding | 108,340,566 | 109,056,008 | * | 108,227,678 | ||||||||
| Diluted common shares outstanding | 108,914,069 | 109,505,921 | * | 108,960,333 | ||||||||
| * - Adjusted for 2.25 to 1 exchange ratio. | ||||||||||||
| Northwest Bancshares, Inc. and Subsidiaries |
| Consolidated Statements of Income - Unaudited |
| (Dollars in thousands, except per share amounts) |
| Nine months ended | ||||||||
| September 30, | ||||||||
| 2010 | 2009 | |||||||
| Interest income: | ||||||||
| Loans receivable | 245,852 | 240,400 | ||||||
| Mortgage-backed securities | 19,385 | 20,858 | ||||||
| Taxable investment securities | 2,086 | 4,138 | ||||||
| Tax-free investment securities | 8,627 | 8,376 | ||||||
| Interest-earning deposits | 1,601 | 415 | ||||||
| Total interest income | 277,551 | 274,187 | ||||||
| Interest expense: | ||||||||
| Deposits | 58,149 | 72,555 | ||||||
| Borrowed funds | 28,991 | 30,418 | ||||||
| Total interest expense | 87,140 | 102,973 | ||||||
| Net interest income | 190,411 | 171,214 | ||||||
| Provision for loan losses | 26,568 | 27,347 | ||||||
| Net interest income after provision | ||||||||
| for loan losses | 163,843 | 143,867 | ||||||
| Noninterest income: | ||||||||
| Impairment losses on securities | (1,994 | ) | (12,417 | ) | ||||
| Noncredit related losses on securities not expected | ||||||||
| to be sold (recognized in other comprehensive income) | 1,287 | 7,236 | ||||||
| Net impairment losses | (707 | ) | (5,181 | ) | ||||
| Gain on sale of investments, net | 2,194 | 377 | ||||||
| Service charges and fees | 28,625 | 24,867 | ||||||
| Trust and other financial services income | 5,345 | 4,349 | ||||||
| Insurance commission income | 3,828 | 2,039 | ||||||
| Loss on real estate owned, net | (2,293 | ) | (3,934 | ) | ||||
| Income from bank owned life insurance | 3,852 | 3,596 | ||||||
| Mortgage banking income | 773 | 6,442 | ||||||
| Other operating income | 3,613 | 2,886 | ||||||
| Total noninterest income | 45,230 | 35,441 | ||||||
| Noninterest expense: | ||||||||
| Compensation and employee benefits | 75,381 | 69,957 | ||||||
| Premises and occupancy costs | 16,990 | 16,521 | ||||||
| Office operations | 10,631 | 9,575 | ||||||
| Processing expenses | 17,111 | 15,483 | ||||||
| Marketing expenses | 6,945 | 5,046 | ||||||
| Federal deposit insurance premiums | 6,720 | 6,161 | ||||||
| FDIC Special Assessment | - | 3,288 | ||||||
| Professional services | 2,437 | 1,899 | ||||||
| Amortization of intangible assets | 2,266 | 2,371 | ||||||
| Real estate owned expense | 2,265 | 1,770 | ||||||
| Other expense | 5,063 | 4,186 | ||||||
| Total noninterest expense | 145,809 | 136,257 | ||||||
| Income before income taxes | 63,264 | 43,051 | ||||||
| Income tax expense | 18,479 | 11,404 | ||||||
| Net income | 44,785 | 31,647 | ||||||
| Basic earnings per share | $ | 0.41 | $ | 0.29 | ||||
| Diluted earnings per share | $ | 0.41 | $ | 0.29 | ||||
| Annualized return on average equity | 4.57 | % | 6.68 | % | ||||
| Annualized return on average assets | 0.74 | % | 0.60 | % | ||||
| Basic common shares outstanding | 108,299,515 | 109,007,874 | ||||||
| Diluted common shares outstanding | 108,959,585 | 109,338,435 | ||||||
| �� | ||||||||
| * - Adjusted for 2.25 to 1 exchange ratio. | ||||||||
| Northwest Bancshares, Inc. and Subsidiaries |
| Supplementary data - unaudited |
| (Dollars in thousands) |
| Three months ended | Nine months ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||
| Allowance for loan losses | ||||||||||||||||||
| Beginning balance | $ | 75,417 | 66,777 | 70,403 | 54,929 | |||||||||||||
| Provision | 9,871 | 9,830 | 26,568 | 27,347 | ||||||||||||||
| Charge-offs mortgage | (682 | ) | (417 | ) | (1,947 | ) | (1,300 | ) | ||||||||||
| Charge-offs consumer | (3,040 | ) | (1,679 | ) | (7,705 | ) | (4,515 | ) | ||||||||||
| Charge-offs commercial | (4,811 | ) | (7,176 | ) | (11,563 | ) | (9,701 | ) | ||||||||||
| Recoveries | 490 | # | 440 | 1,489 | 1,015 | |||||||||||||
| Ending balance | $ | 77,245 | 67,775 | 77,245 | 67,775 | |||||||||||||
| Net charge-offs to average loans, annualized | 0.58 | % | 0.68 | % | 0.48 | % | 0.40 | % | ||||||||||
| September 30, | December 31, | |||||||||||||||||
| 2010 | 2009 | 2009 | 2008 | |||||||||||||||
| Nonperforming loans | $ | 151,217 | 117,138 | 124,626 | 99,203 | |||||||||||||
| Real estate owned, net | 22,998 | 19,838 | 20,257 | 16,844 | ||||||||||||||
| Nonperforming assets | $ | 174,215 | 136,976 | 144,883 | 116,047 | |||||||||||||
| Nonperforming loans to total loans | 2.70 | % | 2.27 | % | 2.35 | % | 1.91 | % | ||||||||||
| Nonperforming assets to total assets | 2.14 | % | 1.92 | % | 1.81 | % | 1.67 | % | ||||||||||
| Allowance for loan losses to total loans | 1.38 | % | 1.32 | % | 1.33 | % | 1.06 | % | ||||||||||
| Allowance for loan losses to nonperforming loans | 51.08 | % | 57.86 | % | 56.49 | % | 55.37 | % | ||||||||||
| Northwest Bancshares, Inc. and Subsidiaries |
| Supplementary data - unaudited |
| (Dollars in thousands) |
| Loans past due schedule | |||||||||||||||||||||||||||||||||
| (Number of loans and dollar amount of loans) | |||||||||||||||||||||||||||||||||
| September 30, | December 31, | ||||||||||||||||||||||||||||||||
| 2010 | * | 2009 | * | 2008 | * | ||||||||||||||||||||||||||||
| Loans past due 30 days to 59 days: | |||||||||||||||||||||||||||||||||
| One- to four- family residential loans | 97 | $ | 6,696 | 0.3 | % | 350 | $ | 27,998 | 1.2 | % | 392 | $ | 32,988 | 1.3 | % | ||||||||||||||||||
| Consumer loans | 993 | 9,874 | 0.7 | % | 1,100 | 11,226 | 0.8 | % | 1,157 | 11,295 | 0.9 | % | |||||||||||||||||||||
| Multifamily and commercial RE loans | 76 | 12,445 | 0.9 | % | 85 | 16,152 | 1.3 | % | 99 | 18,901 | 1.8 | % | |||||||||||||||||||||
| Commercial business loans | 55 | 5,130 | 1.3 | % | 48 | 3,293 | 0.9 | % | 86 | 7,700 | 2.2 | % | |||||||||||||||||||||
| Total loans past due 30 days to 59 days | 1,221 | $ | 34,145 | 0.6 | % | 1,583 | $ | 58,669 | 1.1 | % | 1,734 | $ | 70,884 | 1.4 | % | ||||||||||||||||||
| Loans past due 60 days to 89 days: | |||||||||||||||||||||||||||||||||
| One- to four- family residential loans | 76 | $ | 6,505 | 0.3 | % | 85 | $ | 6,772 | 0.3 | % | 101 | $ | 7,599 | 0.3 | % | ||||||||||||||||||
| Consumer loans | 413 | 3,679 | 0.3 | % | 392 | 3,029 | 0.2 | % | 379 | 2,836 | 0.2 | % | |||||||||||||||||||||
| Multifamily and commercial RE loans | 36 | 12,358 | 0.9 | % | 35 | 5,811 | 0.5 | % | 54 | 8,432 | 0.8 | % | |||||||||||||||||||||
| Commercial business loans | 36 | 2,304 | 0.6 | % | 26 | 2,474 | 0.7 | % | 45 | 3,801 | 1.1 | % | |||||||||||||||||||||
| Total loans past due 60 days to 89 days | 561 | $ | 24,846 | 0.4 | % | 538 | $ | 18,086 | 0.3 | % | 579 | $ | 22,668 | 0.4 | % | ||||||||||||||||||
| Loans past due 90 days or more: | |||||||||||||||||||||||||||||||||
| One- to four- family residential loans | 251 | $ | 27,552 | 1.1 | % | 279 | $ | 29,373 | 1.3 | % | 223 | $ | 20,435 | 0.8 | % | ||||||||||||||||||
| Consumer loans | 600 | 11,936 | 0.9 | % | 727 | 12,544 | 0.9 | % | 687 | 9,756 | 0.7 | % | |||||||||||||||||||||
| Multifamily and commercial RE loans | 186 | 41,605 | 3.1 | % | 199 | 49,594 | 4.0 | % | 155 | 43,828 | 4.1 | % | |||||||||||||||||||||
| Commercial business loans | 104 | 22,431 | 5.6 | % | 124 | 18,269 | 4.9 | % | 114 | 25,184 | 7.1 | % | |||||||||||||||||||||
| Total loans past due 90 days or more | 1,141 | $ | 103,524 | 1.9 | % | 1,329 | $ | 109,780 | 2.1 | % | 1,179 | $ | 99,203 | 1.9 | % | ||||||||||||||||||
| * - 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 September 30, 2010 - unaudited: |
| (Dollars in thousands) |
| Loans outstanding: | ||||||||||||||||||||||||||||||||
| Mortgage | (1) | Consumer | (2) | Commercial | (3) | Total | (4) | |||||||||||||||||||||||||
| Pennsylvania | $ | 2,055,065 | 83.2 | % | 1,189,160 | 87.1 | % | 1,161,039 | 66.1 | % | 4,405,264 | 78.9 | % | |||||||||||||||||||
| New York | 146,241 | 5.9 | % | 107,596 | 7.9 | % | 336,060 | 19.1 | % | 589,897 | 10.5 | % | ||||||||||||||||||||
| Ohio | 26,637 | 1.1 | % | 17,947 | 1.3 | % | 46,234 | 2.6 | % | 90,818 | 1.6 | % | ||||||||||||||||||||
| Maryland | 214,710 | 8.7 | % | 36,976 | 2.7 | % | 170,226 | 9.7 | % | 421,912 | 7.5 | % | ||||||||||||||||||||
| Florida | 27,215 | 1.1 | % | 14,290 | 1.0 | % | 43,066 | 2.5 | % | 84,571 | 1.5 | % | ||||||||||||||||||||
| Total | $ | 2,469,868 | 100.0 | % | 1,365,969 | 100.0 | % | 1,756,625 | 100.0 | % | 5,592,462 | 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 | $ | 18,828 | 0.9 | % | 9,328 | 0.8 | % | 41,854 | 3.6 | % | 70,010 | 1.6 | % | |||||||||||||||||||
| New York | 782 | 0.5 | % | 199 | 0.2 | % | 767 | 0.2 | % | 1,748 | 0.3 | % | ||||||||||||||||||||
| Ohio | 134 | 0.5 | % | 135 | 0.8 | % | 219 | 0.5 | % | 488 | 0.5 | % | ||||||||||||||||||||
| Maryland | 774 | 0.4 | % | 1,029 | 2.8 | % | 14,169 | 8.3 | % | 15,972 | 3.8 | % | ||||||||||||||||||||
| Florida | 7,034 | 25.8 | % | 1,245 | 8.7 | % | 7,027 | 16.3 | % | 15,306 | 18.1 | % | ||||||||||||||||||||
| Total | $ | 27,552 | 1.1 | % | 11,936 | 0.9 | % | 64,036 | 3.6 | % | 103,524 | 1.9 | % | |||||||||||||||||||
| (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 - unaudited |
| (Dollars in thousands) |
| Marketable securities available-for-sale as of September 30, 2010: | ||||||||||||||||
| 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 | $ | 10,014 | - | (1 | ) | 10,013 | ||||||||||
| Debt issued by government sponsored enterprises: | ||||||||||||||||
| Due in one year - five years | 1,986 | 117 | - | 2,103 | ||||||||||||
| Due in five years - ten years | 7,074 | 737 | - | 7,811 | ||||||||||||
| Equity securities | 954 | 95 | (93 | ) | 956 | |||||||||||
| Municipal securities: | ||||||||||||||||
| Due in one year - five years | 3,099 | 176 | - | 3,275 | ||||||||||||
| Due in five years - ten years | 35,944 | 1,596 | - | 37,540 | ||||||||||||
| Due after ten years | 171,960 | 4,391 | (497 | ) | 175,854 | |||||||||||
| Corporate trust preferred securities: | ||||||||||||||||
| Due in one year or less | 100 | - | - | 100 | ||||||||||||
| Due in one year - five years | 500 | - | - | 500 | ||||||||||||
| Due after ten years | 25,530 | 288 | (7,021 | ) | 18,797 | |||||||||||
| Mortgage-backed securities: | ||||||||||||||||
| Fixed rate pass-through | 114,015 | 8,282 | (5 | ) | 122,292 | |||||||||||
| Variable rate pass-through | 181,804 | 8,120 | (24 | ) | 189,900 | |||||||||||
| Fixed rate non-agency CMO | 15,476 | 93 | (1,187 | ) | 14,382 | |||||||||||
| Fixed rate agency CMO | 28,622 | 1,243 | - | 29,865 | ||||||||||||
| Variable rate non-agency CMO | 6,083 | 150 | (180 | ) | 6,053 | |||||||||||
| Variable rate agency CMO | 259,586 | 5,241 | (110 | ) | 264,717 | |||||||||||
| Total mortgage-backed securities | 605,586 | 23,129 | (1,506 | ) | 627,209 | |||||||||||
| Total marketable securities available-for-sale | $ | 862,747 | 30,529 | (9,118 | ) | 884,158 | ||||||||||
| Marketable securities held-to-maturity as of September 30, 2010: | ||||||||||||||||
| Gross | Gross | |||||||||||||||
| unrealized | unrealized | |||||||||||||||
| Amortized | holding | holding | Market | |||||||||||||
| cost | gains | losses | value | |||||||||||||
| Debt issued by government sponsored enterprises: | ||||||||||||||||
| Due in one year - five years | $ | 26,500 | 84 | - | 26,584 | |||||||||||
| Municipal securities: | ||||||||||||||||
| Due after ten years | 81,116 | 1,485 | (31 | ) | 82,570 | |||||||||||
| Mortgage-backed securities: | ||||||||||||||||
| Fixed rate pass-through | 32,168 | 1,012 | - | 33,180 | ||||||||||||
| Variable rate pass-through | 9,996 | 135 | - | 10,131 | ||||||||||||
| Fixed rate agency CMO | 221,772 | 7,306 | - | 229,078 | ||||||||||||
| Variable rate agency CMO | 27,772 | 469 | - | 28,241 | ||||||||||||
| Total mortgage-backed securities | 291,708 | 8,922 | - | 300,630 | ||||||||||||
| Total marketable securities held-to-maturity | $ | 399,324 | 10,491 | (31 | ) | 409,784 | ||||||||||
| Issuers of mortgage-backed securities as of September 30, 2010: | ||||||||||||||||
| Fannie Mae | $ | 327,849 | 11,746 | (123 | ) | 339,472 | ||||||||||
| Ginnie Mae | 264,415 | 9,697 | (8 | ) | 274,104 | |||||||||||
| Freddie Mac | 258,273 | 10,365 | (2 | ) | 268,636 | |||||||||||
| Non-agency | 46,757 | 243 | (1,373 | ) | 45,627 | |||||||||||
| Total | $ | 897,294 | 32,051 | (1,506 | ) | 927,839 | ||||||||||
| 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 September 30, | |||||||||||||||||||||
| 2010 | 2009 | ||||||||||||||||||||
| Average | Interest | Avg. | Average | Interest | Avg. | ||||||||||||||||
| Balance | Yield/ | Balance | Yield/ | ||||||||||||||||||
| Cost | Cost | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Loans receivable (a) (b) (d) | $ | 5,569,014 | 83,753 | 6.00% | 5,168,204 | 80,006 | 6.15% | ||||||||||||||
| Mortgage-backed securities (c) | 853,714 | 6,534 | 3.06% | 714,548 | 6,580 | 3.68% | |||||||||||||||
| Investment securities (c) (d) | 378,145 | 5,243 | 5.55% | 351,741 | 5,422 | 6.17% | |||||||||||||||
| FHLB stock | 63,242 | - | - | 63,143 | - | - | |||||||||||||||
| Other interest-earning deposits | 706,829 | 524 | 0.29% | 328,447 | 253 | 0.30% | |||||||||||||||
| Total interest-earning assets | 7,570,944 | 96,054 | 5.06% | 6,626,083 | 92,261 | 5.54% | |||||||||||||||
| Noninterest earning assets (e) | 591,977 | 512,804 | |||||||||||||||||||
| Total assets | $ | 8,162,921 | 7,138,887 | ||||||||||||||||||
| Liabilities and shareholders' equity: | |||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Savings accounts | $ | 1,071,708 | 2,203 | 0.82% | 842,069 | 1,591 | 0.75% | ||||||||||||||
| Interest-bearing demand accounts | 778,597 | 244 | 0.12% | 746,125 | 555 | 0.30% | |||||||||||||||
| Money market accounts | 903,278 | 1,301 | 0.57% | 766,742 | 1,908 | 0.99% | |||||||||||||||
| Certificate accounts | 2,446,317 | 14,024 | 2.27% | 2,578,266 | 19,418 | 2.99% | |||||||||||||||
| Borrowed funds (f) | 898,618 | 8,150 | 3.60% | 892,081 | 8,665 | 3.85% | |||||||||||||||
| Junior subordinated debentures | 103,094 | 1,437 | 5.45% | 103,094 | 1,449 | 5.50% | |||||||||||||||
| Total interest-bearing liabilities | 6,201,612 | 27,359 | 1.75% | 5,928,377 | 33,586 | 2.25% | |||||||||||||||
| Noninterest bearing liabilities | 648,905 | 566,250 | |||||||||||||||||||
| Total liabilities | 6,850,517 | 6,494,627 | |||||||||||||||||||
| Shareholders' equity | 1,312,404 | 644,260 | |||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 8,162,921 | 7,138,887 | ||||||||||||||||||
| Net interest income/ Interest rate spread | 68,695 | 3.31% | 58,675 | 3.29% | |||||||||||||||||
| Net interest-earning assets/ Net interest margin | $ | 1,369,332 | 3.63% | 697,706 | 3.54% | ||||||||||||||||
| Ratio of interest-earning assets to | |||||||||||||||||||||
| interest-bearing liabilities | 1.22X | 1.12X | |||||||||||||||||||
| (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. |
| Nine months ended September 30, | ||||||||||||||||||||
| 2010 | 2009 | |||||||||||||||||||
| Average | Interest | Avg. | Average | Interest | Avg. | |||||||||||||||
| Balance | Yield/ | Balance | Yield/ | |||||||||||||||||
| Cost | Cost | |||||||||||||||||||
| Assets: | ||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans receivable (a) (b) (d) | $ | 5,461,244 | 246,941 | 6.05% | 5,185,359 | 241,604 | 6.19% | |||||||||||||
| Mortgage-backed securities (c) | 794,691 | 19,385 | 3.25% | 712,593 | 20,858 | 3.90% | ||||||||||||||
| Investment securities (c) (d) | 371,587 | 15,358 | 5.51% | 364,437 | 17,025 | 6.23% | ||||||||||||||
| FHLB stock | 63,242 | - | - | 63,143 | - | - | ||||||||||||||
| Other interest-earning deposits | 833,157 | 1,601 | 0.25% | 232,852 | 415 | 0.24% | ||||||||||||||
| Total interest-earning assets | 7,523,921 | 283,285 | 5.04% | 6,558,384 | 279,902 | 5.67% | ||||||||||||||
| Noninterest earning assets (e) | 577,252 | 491,480 | ||||||||||||||||||
| Total assets | $ | 8,101,173 | 7,049,864 | |||||||||||||||||
| Liabilities and shareholders' equity: | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Savings accounts | $ | 1,022,259 | 6,472 | 0.85% | 822,401 | 4,649 | 0.76% | |||||||||||||
| Interest-bearing demand accounts | 772,584 | 962 | 0.17% | 733,714 | 2,102 | 0.38% | ||||||||||||||
| Money market accounts | 881,983 | 4,768 | 0.72% | 733,956 | 6,703 | 1.22% | ||||||||||||||
| Certificate accounts | 2,492,344 | 45,947 | 2.46% | 2,526,660 | 59,101 | 3.13% | ||||||||||||||
| Borrowed funds (f) | 898,320 | 24,728 | 3.68% | 948,981 | 26,020 | 3.67% | ||||||||||||||
| Junior subordinated debentures | 103,094 | 4,263 | 5.45% | 106,531 | 4,398 | 5.44% | ||||||||||||||
| Total interest-bearing liabilities | 6,170,584 | 87,140 | 1.89% | 5,872,243 | 102,973 | 2.34% | ||||||||||||||
| Noninterest bearing liabilities | 623,875 | 545,623 | ||||||||||||||||||
| Total liabilities | 6,794,459 | 6,417,866 | ||||||||||||||||||
| Shareholders' equity | 1,306,714 | 631,998 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 8,101,173 | 7,049,864 | |||||||||||||||||
| Net interest income/ Interest rate spread | 196,145 | 3.15% | 176,929 | 3.33% | ||||||||||||||||
| Net interest-earning assets/ Net interest margin | $ | 1,353,337 | 3.48% | 686,141 | 3.60% | |||||||||||||||
| Ratio of interest-earning assets to | ||||||||||||||||||||
| interest-bearing liabilities | 1.22X | 1.12X | ||||||||||||||||||
| (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 | Three months ended | |||||||||||||||||||
| September 30, 2010 | June 30, 2010 | |||||||||||||||||||
| Average | Interest | Avg. | Average | Interest | Avg. | |||||||||||||||
| Balance | Yield/ | Balance | Yield/ | |||||||||||||||||
| Cost | Cost | |||||||||||||||||||
| Assets: | ||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans receivable (a) (b) (d) | $ | 5,569,014 | 83,753 | 6.00% | 5,465,373 | 81,866 | 6.03% | |||||||||||||
| Mortgage-backed securities (c) | 853,714 | 6,534 | 3.06% | 792,412 | 6,706 | 3.39% | ||||||||||||||
| Investment securities (c) (d) | 378,145 | 5,243 | 5.55% | 376,206 | 4,989 | 5.30% | ||||||||||||||
| FHLB stock | 63,242 | - | - | 63,242 | - | - | ||||||||||||||
| Other interest-earning deposits | 706,829 | 524 | 0.29% | 845,947 | 512 | 0.24% | ||||||||||||||
| Total interest-earning assets | 7,570,944 | 96,054 | 5.06% | 7,543,180 | 94,073 | 5.02% | ||||||||||||||
| Noninterest earning assets (e) | 591,977 | 584,203 | ||||||||||||||||||
| Total assets | $ | 8,162,921 | 8,127,383 | |||||||||||||||||
| Liabilities and shareholders' equity: | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Savings accounts | $ | 1,071,708 | 2,203 | 0.82% | 1,033,707 | 2,236 | 0.87% | |||||||||||||
| Interest-bearing demand accounts | 778,597 | 244 | 0.12% | 785,619 | 319 | 0.16% | ||||||||||||||
| Money market accounts | 903,278 | 1,301 | 0.57% | 901,439 | 1,630 | 0.73% | ||||||||||||||
| Certificate accounts | 2,446,317 | 14,024 | 2.27% | 2,470,706 | 14,788 | 2.40% | ||||||||||||||
| Borrowed funds (f) | 898,618 | 8,150 | 3.60% | 895,650 | 8,283 | 3.71% | ||||||||||||||
| Junior subordinated debentures | 103,094 | 1,437 | 5.45% | 103,094 | 1,421 | 5.45% | ||||||||||||||
| Total interest-bearing liabilities | 6,201,612 | 27,359 | 1.75% | 6,190,215 | 28,677 | 1.86% | ||||||||||||||
| Noninterest bearing liabilities | 648,905 | 632,037 | ||||||||||||||||||
| Total liabilities | 6,850,517 | 6,822,252 | ||||||||||||||||||
| Shareholders' equity | 1,312,404 | 1,305,131 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 8,162,921 | 8,127,383 | |||||||||||||||||
| Net interest income/ Interest rate spread | 68,695 | 3.31% | 65,396 | 3.16% | ||||||||||||||||
| Net interest-earning assets/ Net interest margin | $ | 1,369,332 | 3.63% | 1,352,965 | 3.47% | |||||||||||||||
| Ratio of interest-earning assets to | ||||||||||||||||||||
| interest-bearing liabilities | 1.22X | 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, securities sold under agreements to repurchase and other borrowings. |