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 Second Quarter
2011 Earnings and Dividend Declaration
Warren, Pennsylvania – July 25, 2011
Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended June 30, 2011 of $15.0 million, or $0.15 per diluted share. This represents a decrease of $1.1 million over the same quarter last year when net income was $16.1 million, or $0.15 per diluted share, and a decrease of $2.3 million over the quarter ended March 31, 2011 when net income was $17.3 million, or $0.16 per diluted share. The annualized returns on average shareholders’ equity and average assets for the current quarter were 4.81% and 0.74% compared to 4.95% and 0.79% for the same quarter last year and 5.39% and 0.86% for the quarter ended March 31, 2011.
The decrease in quarterly earnings when compared to the previous quarter and previous year primarily resulted from additional expense relating to the stock benefit plan that was approved by the Company’s shareholders in April, 2011. The plan was proposed in conjunction with the second-step stock conversion that was completed in December, 2009.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.11 per share payable on August 18, 2011, to shareholders of record as of August 4, 2011. This represents the 67th consecutive quarter in which the Company has paid a cash dividend.
In making this announcement, William J. Wagner, President and CEO, noted, “Absent the impact of the additional stock benefit expense, all other components of earnings exhibited favorable trends: net interest income increased $3.0 million, or 4.6%; income earned from fees, commissions and services increased $189,000; and noninterest expense increased only $1.3 million, or 2.8%. We are also pleased to report that our loan portfolio increased $2.6 million during the quarter while demand deposits grew $8.0 million. Finally, we continued to make progress on our announced stock buyback plan with the repurchase of 5,850,866 shares at an average price of $12.23 per share. To date, we have repurchased 8,986,989 of the 11,000,000 targeted shares at an average price of $12.14 per share.”
Net interest income increased by $3.0 million, or 4.6%, to $66.7 million for the quarter ended June 30, 2011, from $63.7 million for the quarter ended June 30, 2010, which was primarily attributable to a decrease in the cost of deposits. Interest expense on deposits decreased by $3.5 million, or 18.4%, to $15.5 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 $471,000, or 6.0%, to $8.4 million for the quarter ended June 30, 2011, from $7.9 million for the quarter ended June 30, 2010. Charge-offs for the quarter ended June 30, 2011 were $9.4 million, including $3.0 million related to the exiting of a Maryland hotel credit during the quarter. As of June 30, 2011, the allowance for loan losses was $75.5 million, or 1.37% of total loans, compared to $75.4 million, or 1.36% of total loans, as of June 30, 2010. Loans 90 days or more delinquent were $115.8 million as of June 30, 2011, compared to $124.8 million as of March 31, 2011 and $107.5 million as of June 30, 2010.
Noninterest income decreased by $283,000, or 1.8%, to $15.3 million for the quarter ended June 30, 2011, from $15.5 million for the quarter ended June 30, 2010. Losses on real estate owned increased by $338,000, or 132.5%, to $593,000 for the quarter ended June 30, 2011 from $255,000 for the quarter ended June 30, 2010 as a result of write-downs on real estate owned in Maryland. Service charges and fees decreased by $581,000, or 5.9%, to $9.3 million for the quarter ended June 30, 2011 from $9.9 million for the quarter ended June 30, 2010 primarily as a result of lower deposit overdraft revenue. Other-than-temporary impairment losses on securities were $507,000 compared to $218,000 for the quarter ended June 30, 2010 related to further deterioration in the value of two investment securities. Partially offsetting these were an increase in insurance commission income, which increased by $497,000, or 38.4%, to $1.8 million for the quarter ended June 30, 2011 due to increased insurance revenues and increases in trust services income and mortgage banking income of $273,000 and $261,000, respectively.
Noninterest expense increased by $4.3 million, or 9.0%, to $52.5 million for the quarter ended June 30, 2011, from $48.2 million for the 2010 quarter. This increase is primarily a result of increases in compensation and employee benefits and professional services expenses, which were partially offset by decreases in marketing and other real estate owned expenses. Compensation and employee benefits expenses increased by $4.8 million, or 19.4%, to $29.8 million for the quarter ended June 30, 2011, primarily due to increases in health insurance expense and the aforementioned initial vesting of the stock benefit plans. In addition, full-time equivalent employees have increased by 42 since the beginning of the current year with staffing increases primarily in the areas of commercial lending, compliance and loan servicing. Professional services expenses increased by $706,000, or 121.1%, to $1.3 million for the quarter ended June 30, 2011 as a result of the outsourcing of the internal audit function and the continued engagement of regulatory compliance consultants. Marketing expense decreased by $1.2 million, or 36.0%, to $2.1 million for the quarter ended June 30, 2011 due to the timing of various campaigns and initiatives.
Net income for the six-month period ended June 30, 2011 of $32.3 million, or $0.31 per diluted share, represents an increase of $3.0 million, or 10.1% compared to net income of $29.3 million, or $0.27 per diluted share, for the six-month period ended June 30, 2010. The annualized returns on average shareholders’ equity and average assets were 5.07% and 0.79%, respectively, for the current six-month period compared to 4.49% and 0.73%, respectively, in the prior year.
Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Savings Bank. After closing our three offices in Florida as of June 30, 2011, we operate 169 community banking offices in Pennsylvania, New York, Ohio and Maryland. Northwest Savings Bank, founded in 1896, is a full-service financial institution offering a complete line of business and personal banking products as well as benefits and wealth management services. The Company also operates 52 consumer finance offices in Pennsylvania through its subsidiary, Northwest Consumer Discount Company. Northwest Bancshares, Inc.’s common stock is listed on the NASDAQ Global Select Market. Additional information regarding Northwest Bancshares, Inc. can be accessed on-line at www.northwestsavingsbank.com.
# # #
Forward-Looking Statements - This 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) | ||||||||
June 30, | December 31, | |||||||
Assets | 2011 | 2010 | ||||||
Cash and cash equivalents | $ | 80,889 | 40,708 | |||||
Interest-earning deposits in other financial institutions | 631,957 | 677,771 | ||||||
Federal funds sold and other short-term investments | 633 | 632 | ||||||
Marketable securities available-for-sale (amortized cost of $1,023,829 and $945,791) | 1,040,547 | 950,683 | ||||||
Marketable securities held-to-maturity (fair value of $284,685 and $354,126) | 280,782 | 357,922 | ||||||
Total cash, interest-earning deposits and marketable securities | 2,034,808 | 2,027,716 | ||||||
Loans held for sale | 8,035 | 11,376 | ||||||
Residental mortgage loans | 2,342,904 | 2,386,928 | ||||||
Home equity loans | 1,083,301 | 1,092,606 | ||||||
Consumer loans | 247,182 | 259,123 | ||||||
Commercial real estate loans | 1,375,090 | 1,350,319 | ||||||
Commercial loans | 432,666 | 433,653 | ||||||
Total loans receivable | 5,489,178 | 5,534,005 | ||||||
Allowance for loan losses | (75,455 | ) | (76,412 | ) | ||||
Loans receivable, net | 5,413,723 | 5,457,593 | ||||||
Federal Home Loan Bank stock, at cost | 54,222 | 60,080 | ||||||
Accrued interest receivable | 25,647 | 26,216 | ||||||
Real estate owned, net | 21,389 | 20,780 | ||||||
Premises and Equipment, net | 126,303 | 128,101 | ||||||
Bank owned life insurance | 133,358 | 132,237 | ||||||
Goodwill | 171,882 | 171,882 | ||||||
Other intangible assets | 2,972 | 3,942 | ||||||
Other assets | 103,041 | 119,608 | ||||||
Total assets | $ | 8,087,345 | 8,148,155 | |||||
Liabilities and Shareholders' equity | ||||||||
Liabilities | ||||||||
Noninterest-bearing demand deposits | $ | 614,718 | 575,281 | |||||
Interest-bearing demand deposits | 796,482 | 782,257 | ||||||
Savings deposits | 2,042,618 | 1,948,882 | ||||||
Time deposits | 2,365,488 | 2,457,916 | ||||||
Total deposits | 5,819,306 | 5,764,336 | ||||||
Borrowed funds | 847,450 | 891,293 | ||||||
Advances by borrowers for taxes and insurance | 30,371 | 22,868 | ||||||
Accrued interest payable | 1,155 | 1,716 | ||||||
Other liabilities | 58,828 | 57,398 | ||||||
Junior subordinated debentures | 103,094 | 103,094 | ||||||
Total liabilities | 6,860,204 | 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, 103,266,045 shares | ||||||||
and 110,295,117 shares issued, respectively | 1,033 | 1,103 | ||||||
Paid-in-capital | 726,207 | 824,164 | ||||||
Retained earnings | 533,229 | 523,089 | ||||||
Unallocated common stock of Employee Stock Ownership Plan | (26,639 | ) | (27,409 | ) | ||||
Accumulated other comprehensive loss | (6,689 | ) | (13,497 | ) | ||||
Total shareholders' equity | 1,227,141 | 1,307,450 | ||||||
Total liabilities and shareholders' equity | $ | 8,087,345 | 8,148,155 | |||||
Equity to assets | 15.17 | % | 16.05 | % | ||||
Tangible common equity to assets | 13.30 | % | 14.19 | % | ||||
Book value per share | $ | 11.88 | $ | 11.85 | ||||
Tangible book value per share | $ | 10.19 | $ | 10.26 | ||||
Closing market price per share | $ | 12.58 | $ | 11.78 | ||||
Full time equivalent employees | 1,923 | 1,881 | ||||||
Number of banking offices | 169 | 171 |
Northwest Bancshares, Inc. and Subsidiaries |
Consolidated Statements of Income - Unaudited |
(Dollars in thousands, except per share amounts) |
Three months ended | ||||||||||||
June 30, | March 31, | |||||||||||
2011 | 2010 | 2011 | ||||||||||
Interest income: | ||||||||||||
Loans receivable | $ | 79,993 | 81,734 | $ | 80,457 | |||||||
Mortgage-backed securities | 6,073 | 6,706 | 6,756 | |||||||||
Taxable investment securities | 594 | 599 | 398 | |||||||||
Tax-free investment securities | 2,992 | 2,853 | 3,074 | |||||||||
Interest-earning deposits | 489 | 512 | 407 | |||||||||
Total interest income | 90,141 | 92,404 | 91,092 | |||||||||
Interest expense: | ||||||||||||
Deposits | 15,473 | 18,973 | 16,063 | |||||||||
Borrowed funds | 7,989 | 9,704 | 7,989 | |||||||||
Total interest expense | 23,462 | 28,677 | 24,052 | |||||||||
Net interest income | 66,679 | 63,727 | 67,040 | |||||||||
Provision for loan losses | 8,367 | 7,896 | 7,244 | |||||||||
Net interest income after provision | ||||||||||||
for loan losses | 58,312 | 55,831 | 59,796 | |||||||||
Noninterest income: | ||||||||||||
Impairment losses on securities | (577 | ) | (1,824 | ) | - | |||||||
Noncredit related losses on securities not expected | ||||||||||||
to be sold (recognized in other comprehensive income) | 70 | 1,606 | - | |||||||||
Net impairment losses | (507 | ) | (218 | ) | - | |||||||
Gain on sale of investments, net | 45 | 94 | 4 | |||||||||
Service charges and fees | 9,321 | 9,902 | 8,928 | |||||||||
Trust and other financial services income | 2,185 | 1,912 | 1,910 | |||||||||
Insurance commission income | 1,790 | 1,293 | 1,380 | |||||||||
Loss on real estate owned, net | (593 | ) | (255 | ) | (27 | ) | ||||||
Income from bank owned life insurance | 1,716 | 1,474 | 1,166 | |||||||||
Mortgage banking income | 290 | 29 | 197 | |||||||||
Other operating income | 1,015 | 1,314 | 768 | |||||||||
Total noninterest income | 15,262 | 15,545 | 14,326 | |||||||||
Noninterest expense: | ||||||||||||
Compensation and employee benefits | 29,804 | * | 24,960 | 25,353 | ||||||||
Premises and occupancy costs | 5,650 | 5,340 | 6,191 | |||||||||
Office operations | 3,255 | 2,934 | 3,100 | |||||||||
Processing expenses | 5,687 | 5,552 | 5,767 | |||||||||
Marketing expenses | 2,108 | 3,294 | 1,959 | |||||||||
Federal deposit insurance premiums | 2,355 | 2,148 | 2,427 | |||||||||
Professional services | 1,289 | 583 | 1,256 | |||||||||
Amortization of intangible assets | 333 | 759 | 637 | |||||||||
Real estate owned expense | 249 | 712 | 431 | |||||||||
Other expense | 1,760 | 1,875 | 2,257 | |||||||||
Total noninterest expense | 52,490 | 48,157 | 49,378 | |||||||||
Income before income taxes | 21,084 | 23,219 | �� | 24,744 | ||||||||
Income tax expense | 6,081 | 7,078 | 7,491 | |||||||||
Net income | $ | 15,003 | 16,141 | 17,253 | ||||||||
Basic earnings per share | $ | 0.15 | $ | 0.15 | $ | 0.16 | ||||||
Diluted earnings per share | $ | 0.15 | $ | 0.15 | $ | 0.16 | ||||||
Annualized return on average equity | 4.81 | % | 4.95 | % | 5.39 | % | ||||||
Annualized return on average assets | 0.74 | % | 0.79 | % | 0.86 | % | ||||||
Basic common shares outstanding | 102,216,892 | 108,227,678 | 106,571,262 | |||||||||
Diluted common shares outstanding | 102,536,202 | 108,960,333 | 107,258,320 |
* - | Includes $2.8 million of stock benefit plan expense related to awards granted in May, 2011. |
Approximately 40% of the awards approved by shareholders in April, 2011 were awarded in May, 2011. | |
Awards vest over a ten year period with the first vesting occurring on the date of grant. It is anticipated that the remaining 60% of the awards will be granted over the next six years. |
Northwest Bancshares, Inc. and Subsidiaries |
Consolidated Statements of Income - Unaudited |
(Dollars in thousands, except per share amounts) |
Six months ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
Interest income: | ||||||||
Loans receivable | $ | 160,450 | 162,480 | |||||
Mortgage-backed securities | 12,829 | 12,851 | ||||||
Taxable investment securities | 992 | 1,597 | ||||||
Tax-free investment securities | 6,066 | 5,537 | ||||||
Interest-earning deposits | 896 | 1,077 | ||||||
Total interest income | 181,233 | 183,542 | ||||||
Interest expense: | ||||||||
Deposits | 31,536 | 40,377 | ||||||
Borrowed funds | 15,978 | 19,404 | ||||||
Total interest expense | 47,514 | 59,781 | ||||||
Net interest income | 133,719 | 123,761 | ||||||
Provision for loan losses | 15,611 | 16,697 | ||||||
Net interest income after provision | ||||||||
for loan losses | 118,108 | 107,064 | ||||||
Noninterest income: | ||||||||
Impairment losses on securities | (577 | ) | (1,921 | ) | ||||
Noncredit related losses on securities not expected | ||||||||
to be sold (recognized in other comprehensive income) | 70 | 1,606 | ||||||
Net impairment losses | (507 | ) | (315 | ) | ||||
Gain on sale of investments, net | 49 | 2,177 | ||||||
Service charges and fees | 18,249 | 18,804 | ||||||
Trust and other financial services income | 4,095 | 3,745 | ||||||
Insurance commission income | 3,170 | 2,435 | ||||||
Loss on real estate owned, net | (620 | ) | (279 | ) | ||||
Income from bank owned life insurance | 2,882 | 2,640 | ||||||
Mortgage banking income | 487 | 21 | ||||||
Other operating income | 1,783 | 2,174 | ||||||
Total noninterest income | 29,588 | 31,402 | ||||||
Noninterest expense: | ||||||||
Compensation and employee benefits | 55,157 | 50,816 | ||||||
Premises and occupancy costs | 11,841 | 11,342 | ||||||
Office operations | 6,355 | 6,171 | ||||||
Processing expenses | 11,454 | 11,248 | ||||||
Marketing expenses | 4,067 | 4,737 | ||||||
Federal deposit insurance premiums | 4,782 | 4,296 | ||||||
Professional services | 2,545 | 1,311 | ||||||
Amortization of intangible assets | 970 | 1,541 | ||||||
Real estate owned expense | 680 | 1,611 | ||||||
Other expense | 4,017 | 3,688 | ||||||
Total noninterest expense | 101,868 | 96,761 | ||||||
Income before income taxes | 45,828 | 41,705 | ||||||
Income tax expense | 13,572 | 12,411 | ||||||
Net income | 32,256 | 29,294 | ||||||
Basic earnings per share | $ | 0.31 | $ | 0.27 | ||||
Diluted earnings per share | $ | 0.31 | $ | 0.27 | ||||
Annualized return on average equity | 5.07 | % | 4.49 | % | ||||
Annualized return on average assets | 0.79 | % | 0.73 | % | ||||
Basic common shares outstanding | 104,381,955 | 108,278,912 | ||||||
Diluted common shares outstanding | 104,884,123 | 108,982,981 |
Northwest Bancshares, Inc. and Subsidiaries |
Asset quality |
(Dollars in thousands) |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Allowance for loan losses | ||||||||||||||||
Beginning balance | $ | 76,450 | 74,836 | 76,412 | 70,403 | |||||||||||
Provision | 8,367 | 7,896 | 15,611 | 16,697 | ||||||||||||
Charge-offs residential mortgage | (829 | ) | (600 | ) | (2,034 | ) | (1,275 | ) | ||||||||
Charge-offs home equity | (893 | ) | (1,120 | ) | (3,148 | ) | (1,721 | ) | ||||||||
Charge-offs consumer | (1,277 | ) | (1,674 | ) | (2,509 | ) | (2,934 | ) | ||||||||
Charge-offs commercial real estate | (2,269 | ) | (1,900 | ) | (4,545 | ) | (3,135 | ) | ||||||||
Charge-offs commercial | (4,874 | ) | (2,518 | ) | (5,915 | ) | (3,617 | ) | ||||||||
Recoveries | 780 | # | 497 | 1,583 | 999 | |||||||||||
Ending balance | $ | 75,455 | 75,417 | 75,455 | 75,417 | |||||||||||
Net charge-offs to average loans, annualized | 0.68 | % | 0.54 | % | 0.60 | % | 0.43 | % |
June 30, | December 31, | |||||||||||||||
2011 | 2010 | 2010 | 2009 | |||||||||||||
Nonperforming loans | $ | 161,115 | 130,329 | 148,391 | 124,626 | |||||||||||
Real estate owned, net | 21,389 | 22,191 | 20,780 | 20,257 | ||||||||||||
Nonperforming assets | $ | 182,504 | 152,520 | 169,171 | 144,883 | |||||||||||
Nonperforming loans to total loans | 2.94 | % | 2.35 | % | 2.68 | % | 2.35 | % | ||||||||
Nonperforming assets to total assets | 2.26 | % | 1.87 | % | 2.08 | % | 1.81 | % | ||||||||
Allowance for loan losses to total loans | 1.37 | % | 1.36 | % | 1.38 | % | 1.33 | % | ||||||||
Allowance for loan losses to nonperforming loans | 46.83 | % | 57.87 | % | 51.49 | % | 56.49 | % |
Northwest Bancshares, Inc. and Subsidiaries |
Delinquency |
(Dollars in thousands) |
Loan delinquency schedule | ||||||||||||||||||||||||||||||||||||
(Number of loans and dollar amount of loans) | ||||||||||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||||||||||||
2011 | * | 2010 | * | 2009 | * | |||||||||||||||||||||||||||||||
Loans delinquent 30 days to 59 days: | ||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 84 | $ | 4,627 | 0.2 | % | 427 | $ | 35,329 | 1.5 | % | 350 | $ | 27,998 | 1.2 | % | |||||||||||||||||||||
Home equity loans | 174 | $ | 5,763 | 0.5 | % | 230 | $ | 7,317 | 0.7 | % | 177 | $ | 6,928 | 0.7 | % | |||||||||||||||||||||
Consumer loans | 825 | 3,816 | 1.5 | % | 1,008 | 5,318 | 2.1 | % | 923 | 4,298 | 1.5 | % | ||||||||||||||||||||||||
Commercial real estate loans | 58 | 7,902 | 0.6 | % | 82 | 16,287 | 1.2 | % | 85 | 16,152 | 1.3 | % | ||||||||||||||||||||||||
Commercial loans | 40 | 2,264 | 0.5 | % | 48 | 6,590 | 1.5 | % | 48 | 3,293 | 0.9 | % | ||||||||||||||||||||||||
Total loans delinquent 30 days to 59 days | 1,181 | $ | 24,372 | 0.4 | % | 1,795 | $ | 70,841 | 1.3 | % | 1,583 | $ | 58,669 | 1.1 | % | |||||||||||||||||||||
Loans delinquent 60 days to 89 days: | ||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 84 | $ | 8,044 | 0.3 | % | 106 | $ | 9,848 | 0.4 | % | 85 | $ | 6,772 | 0.3 | % | |||||||||||||||||||||
Home equity loans | 60 | $ | 2,602 | 0.2 | % | 81 | $ | 3,249 | 0.3 | % | 44 | $ | 1,603 | 0.2 | % | |||||||||||||||||||||
Consumer loans | 349 | 1,195 | 0.5 | % | 356 | 1,331 | 0.5 | % | 348 | 1,426 | 0.5 | % | ||||||||||||||||||||||||
Commercial real estate loans | 23 | 3,348 | 0.2 | % | 39 | 14,365 | 1.1 | % | 35 | 5,811 | 0.5 | % | ||||||||||||||||||||||||
Commercial loans | 22 | 3,887 | 0.9 | % | 9 | 1,678 | 0.4 | % | 26 | 2,474 | 0.7 | % | ||||||||||||||||||||||||
Total loans delinquent 60 days to 89 days | 538 | $ | 19,076 | 0.3 | % | 591 | $ | 30,471 | 0.6 | % | 538 | $ | 18,086 | 0.3 | % | |||||||||||||||||||||
Loans delinquent 90 days or more: | ||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 268 | $ | 30,594 | 1.3 | % | 275 | $ | 29,751 | 1.2 | % | 279 | $ | 29,373 | 1.3 | % | |||||||||||||||||||||
Home equity loans | 173 | $ | 9,069 | 0.8 | % | 190 | $ | 10,263 | 0.9 | % | 181 | $ | 9,769 | 0.9 | % | |||||||||||||||||||||
Consumer loans | 314 | 1,825 | 0.7 | % | 374 | 2,565 | 1.0 | % | 546 | 2,775 | 1.0 | % | ||||||||||||||||||||||||
Commercial real estate loans | 151 | 55,512 | 4.0 | % | 181 | 44,965 | 3.3 | % | 199 | 49,594 | 4.0 | % | ||||||||||||||||||||||||
Commercial loans | 55 | 18,802 | 4.3 | % | 111 | 12,877 | 3.0 | % | 124 | 18,269 | 4.9 | % | ||||||||||||||||||||||||
Total loans delinquent 90 days or more | 961 | $ | 115,802 | 2.1 | % | 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 June 30, 2011 - unaudited: |
(Dollars in thousands) |
Loans outstanding: | Commercial | |||||||||||||||||||||||||||||||||||||||||||||||
Residental | Home | Real estate | Commercial | |||||||||||||||||||||||||||||||||||||||||||||
mortgage | (1) | equity | (2) | Consumer | (3) | loans | (4) | loans | (5) | Total | (6) | |||||||||||||||||||||||||||||||||||||
Pennsylvania | $ | 1,915,898 | 81.4 | % | 924,463 | 85.3 | % | 225,296 | 91.2 | % | 813,236 | 59.1 | % | 279,894 | 64.7 | % | 4,158,787 | 75.8 | % | |||||||||||||||||||||||||||||
New York | 158,728 | 6.8 | % | 102,441 | 9.5 | % | 11,317 | 4.6 | % | 322,890 | 23.5 | % | 63,785 | 14.7 | % | 659,161 | 12.0 | % | ||||||||||||||||||||||||||||||
Ohio | 20,198 | 0.9 | % | 11,459 | 1.1 | % | 2,804 | 1.1 | % | 35,090 | 2.6 | % | 8,822 | 2.0 | % | 78,373 | 1.4 | % | ||||||||||||||||||||||||||||||
Maryland | 180,739 | 7.7 | % | 34,084 | 3.1 | % | 1,414 | 0.6 | % | 114,382 | 8.3 | % | 22,455 | 5.2 | % | 353,074 | 6.4 | % | ||||||||||||||||||||||||||||||
Florida | 29,697 | 1.3 | % | 8,893 | 0.8 | % | 1,807 | 0.7 | % | 46,301 | 3.4 | % | 23,187 | 5.4 | % | 109,885 | 2.0 | % | ||||||||||||||||||||||||||||||
All other | 45,679 | 1.9 | % | 1,961 | 0.2 | % | 4,544 | 1.8 | % | 43,191 | 3.1 | % | 34,523 | 8.0 | % | 129,898 | 2.4 | % | ||||||||||||||||||||||||||||||
Total | $ | 2,350,939 | 100.0 | % | 1,083,301 | 100.0 | % | 247,182 | 100.0 | % | 1,375,090 | 100.0 | % | 432,666 | 100.0 | % | 5,489,178 | 100.0 | % |
(1) - Percentage of total residential mortgage loans |
(2) - Percentage of total home equity loans |
(3) - Percentage of total consumer loans |
(4) - Percentage of total commercial real estate loans |
(5) - Percentage of total commercial loans |
(6) - Percentage of total loans |
Loans 90 or more past due: | Commercial | |||||||||||||||||||||||||||||||||||||||||||||||
Residental | Home | Real estate | Commercial | |||||||||||||||||||||||||||||||||||||||||||||
mortgage | (7) | equity | (8) | Consumer | (9) | loans | (10) | loans | (11) | Total | (12) | |||||||||||||||||||||||||||||||||||||
Pennsylvania | $ | 18,487 | 1.0 | % | 6,663 | 0.7 | % | 1,648 | 0.7 | % | 26,022 | 3.2 | % | 5,114 | 1.8 | % | 57,934 | 1.4 | % | |||||||||||||||||||||||||||||
New York | 1,050 | 0.7 | % | 561 | 0.5 | % | 48 | 0.4 | % | 7,728 | 2.4 | % | 8,950 | 14.0 | % | 18,337 | 2.8 | % | ||||||||||||||||||||||||||||||
Ohio | 310 | 1.5 | % | 54 | 0.5 | % | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | 364 | 0.5 | % | ||||||||||||||||||||||||||||||
Maryland | 5,471 | 3.0 | % | 1,352 | 4.0 | % | - | 0.0 | % | 8,447 | 7.4 | % | 153 | 0.7 | % | 15,423 | 4.4 | % | ||||||||||||||||||||||||||||||
Florida | 4,629 | 15.6 | % | 404 | 4.5 | % | 5 | 0.3 | % | 6,002 | 13.0 | % | 4,010 | 17.3 | % | 15,050 | 13.7 | % | ||||||||||||||||||||||||||||||
All other | 760 | 1.7 | % | 37 | 1.9 | % | 8 | 0.2 | % | 7,313 | 16.9 | % | 576 | 1.7 | % | 8,694 | 6.7 | % | ||||||||||||||||||||||||||||||
Total | $ | 30,707 | 1.3 | % | 9,071 | 0.8 | % | 1,709 | 0.7 | % | 55,512 | 4.0 | % | 18,803 | 4.3 | % | 115,802 | 2.1 | % |
(7) - Percentage of total residental mortgage loans in that geographic area |
(8) - Percentage of total home equity loans in that geographic area |
(9) - Percentage of total consumer loans in that geographic area |
(10) - Percentage of total commercial real estate loans in that geographic area |
(11) - Percentage of total commercial loans in that geographic area |
(12) - 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 June 30, 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 | $ | 63 | - | - | 63 | |||||||||||
Debt issued by government sponsored enterprises: | ||||||||||||||||
Due in one year or less | 1,995 | 46 | - | 2,041 | ||||||||||||
Due in one year - five years | 64,298 | 350 | - | 64,648 | ||||||||||||
Due in five years - ten years | 35,200 | 612 | (107 | ) | 35,705 | |||||||||||
Due after ten years | 9,952 | - | (56 | ) | 9,896 | |||||||||||
Equity securities | 6,218 | 395 | (1 | ) | 6,612 | |||||||||||
Municipal securities: | ||||||||||||||||
Due in one year - five years | 7,122 | 258 | - | 7,380 | ||||||||||||
Due in five years - ten years | 30,210 | 1,124 | - | 31,334 | ||||||||||||
Due after ten years | 164,405 | 2,317 | (1,520 | ) | 165,202 | |||||||||||
Corporate trust preferred securities: | ||||||||||||||||
Due in one year or less | 500 | - | - | 500 | ||||||||||||
Due after ten years | 25,384 | 338 | (4,933 | ) | 20,789 | |||||||||||
Mortgage-backed securities: | ||||||||||||||||
Fixed rate pass-through | 115,138 | 7,275 | (6 | ) | 122,407 | |||||||||||
Variable rate pass-through | 150,022 | 6,837 | (4 | ) | 156,855 | |||||||||||
Fixed rate non-agency CMO | 11,329 | 178 | (639 | ) | 10,868 | |||||||||||
Fixed rate agency CMO | 135,274 | 3,095 | (1 | ) | 138,368 | |||||||||||
Variable rate non-agency CMO | 1,577 | - | (136 | ) | 1,441 | |||||||||||
Variable rate agency CMO | 265,142 | 1,750 | (454 | ) | 266,438 | |||||||||||
Total mortgage-backed securities | 678,482 | 19,135 | (1,240 | ) | 696,377 | |||||||||||
Total marketable securities available-for-sale | $ | 1,023,829 | 24,575 | (7,857 | ) | 1,040,547 |
Marketable securities held-to-maturity as of June 30, 2011: | ||||||||||||||||
Gross | Gross | |||||||||||||||
unrealized | unrealized | |||||||||||||||
Amortized | holding | holding | Market | |||||||||||||
cost | gains | losses | value | |||||||||||||
Municipal securities: | ||||||||||||||||
Due in five years - ten years | $ | 1,086 | 16 | - | 1,102 | |||||||||||
Due after ten years | 76,735 | 477 | (270 | ) | 76,942 | |||||||||||
Mortgage-backed securities: | ||||||||||||||||
Fixed rate pass-through | 27,564 | 743 | - | 28,307 | ||||||||||||
Variable rate pass-through | 9,530 | 69 | - | 9,599 | ||||||||||||
Fixed rate agency CMO | 147,066 | 2,614 | (65 | ) | 149,615 | |||||||||||
Variable rate agency CMO | 18,801 | 319 | - | 19,120 | ||||||||||||
Total mortgage-backed securities | 202,961 | 3,745 | (65 | ) | 206,641 | |||||||||||
Total marketable securities held-to-maturity | $ | 280,782 | 4,238 | (335 | ) | 284,685 | ||||||||||
Issuers of mortgage-backed securities as of June 30, 2011: | ||||||||||||||||
Fannie Mae | $ | 341,283 | 9,727 | (200 | ) | 350,810 | ||||||||||
Ginnie Mae | 180,537 | 3,646 | (81 | ) | 184,102 | |||||||||||
Freddie Mac | 325,235 | 9,318 | (243 | ) | 334,310 | |||||||||||
SBA | 20,746 | 11 | - | 20,757 | ||||||||||||
Non-agency | 13,642 | 178 | (781 | ) | 13,039 | |||||||||||
Total | $ | 881,443 | 22,880 | (1,305 | ) | 903,018 |
Northwest Bancshares, Inc. and Subsidiaries |
Municipal Securities Portfolio |
(Dollars in thousands) |
Book | As a % | |||||||
Value | of Book | |||||||
6/30/2011 | Value | |||||||
Municipal securities by state: | ||||||||
Pennsylvania | ||||||||
School districts | $ | 135,151 | 48.34 | % | ||||
General obligations | 53,008 | 18.96 | % | |||||
Revenue bonds | 14,060 | 5.03 | % | |||||
Total Pennsylvania | 202,219 | 72.34 | % | |||||
New York | 33,927 | 12.14 | % | |||||
Ohio | 6,426 | 2.30 | % | |||||
All other states | 36,986 | 13.23 | % | |||||
$ | 279,558 |
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 June 30, | |||||||||||||||||||
2011 | 2010 | ||||||||||||||||||
Average | Interest | Avg. | Average | Interest | Avg. | ||||||||||||||
Balance | Yield/ | Balance | Yield/ | ||||||||||||||||
Cost | Cost | ||||||||||||||||||
Assets: | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Loans receivable (a) (b) (d) | $ | 5,484,194 | 80,389 | 5.86% | 5,465,373 | 81,866 | 6.03% | ||||||||||||
Mortgage-backed securities (c) | 917,748 | 6,073 | 2.65% | 792,412 | 6,706 | 3.39% | |||||||||||||
Investment securities (c) (d) | 392,963 | 5,196 | 5.29% | 376,206 | 4,989 | 5.30% | |||||||||||||
FHLB stock | 55,100 | - | - | 63,242 | - | - | |||||||||||||
Other interest-earning deposits | 705,568 | 489 | 0.27% | 845,947 | 512 | 0.24% | |||||||||||||
Total interest-earning assets | 7,555,573 | 92,147 | 4.87% | 7,543,180 | 94,073 | 5.02% | |||||||||||||
Noninterest earning assets (e) | 556,085 | 584,203 | |||||||||||||||||
Total assets | $ | 8,111,658 | 8,127,383 | ||||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Savings accounts | $ | 1,093,539 | 1,275 | 0.47% | 1,033,707 | 2,236 | 0.87% | ||||||||||||
Interest-bearing demand accounts | 813,179 | 246 | 0.12% | 785,619 | 319 | 0.16% | |||||||||||||
Money market accounts | 933,288 | 1,059 | 0.46% | 901,439 | 1,630 | 0.73% | |||||||||||||
Certificate accounts | 2,372,039 | 12,893 | 2.18% | 2,470,706 | 14,788 | 2.40% | |||||||||||||
Borrowed funds (f) | 841,835 | 6,569 | 3.13% | 895,650 | 8,283 | 3.71% | |||||||||||||
Junior subordinated debentures | 103,094 | 1,420 | 5.45% | 103,094 | 1,421 | 5.45% | |||||||||||||
Total interest-bearing liabilities | 6,156,974 | 23,462 | 1.53% | 6,190,215 | 28,677 | 1.86% | |||||||||||||
Noninterest bearing liabilities | 708,310 | 632,037 | |||||||||||||||||
Total liabilities | 6,865,284 | 6,822,252 | |||||||||||||||||
Shareholders' equity | 1,246,374 | 1,305,131 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 8,111,658 | 8,127,383 | ||||||||||||||||
Net interest income/ Interest rate spread | 68,685 | 3.34% | 65,396 | 3.16% | |||||||||||||||
Net interest-earning assets/ Net interest margin | $ | 1,398,599 | 3.64% | 1,352,965 | 3.47% | ||||||||||||||
Ratio of interest-earning assets to | |||||||||||||||||||
interest-bearing liabilities | 1.23X | 1.22X |
(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status. |
(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material. |
(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale. |
(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis. |
(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
(f) Average balances include FHLB borrowings, 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.
Six months ended June 30, | ||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||
Average | Interest | Avg. | Average | Interest | Avg. | |||||||||||||||
Balance | Yield/ | Balance | Yield/ | |||||||||||||||||
Cost | Cost | |||||||||||||||||||
Assets: | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Loans receivable (a) (b) (d) | $ | 5,500,134 | 161,237 | 5.88% | 5,406,464 | 163,188 | 6.07% | |||||||||||||
Mortgage-backed securities (c) | 922,024 | 12,829 | 2.78% | 764,690 | 12,851 | 3.36% | ||||||||||||||
Investment securities (c) (d) | 373,870 | 10,324 | 5.52% | 367,856 | 10,116 | 5.50% | ||||||||||||||
FHLB stock | 56,962 | - | - | 63,242 | - | - | ||||||||||||||
Other interest-earning deposits | 695,717 | 896 | 0.26% | 896,321 | 1,077 | 0.24% | ||||||||||||||
Total interest-earning assets | 7,548,707 | 185,286 | 4.92% | 7,498,573 | 187,232 | 5.02% | ||||||||||||||
Noninterest earning assets (e) | 574,662 | 576,136 | ||||||||||||||||||
Total assets | $ | 8,123,369 | 8,074,709 | |||||||||||||||||
Liabilities and shareholders' equity: | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Savings accounts | $ | 1,078,700 | 2,704 | 0.51% | 997,126 | 4,269 | 0.86% | |||||||||||||
Interest-bearing demand accounts | 793,526 | 478 | 0.12% | 769,531 | 718 | 0.19% | ||||||||||||||
Money market accounts | 924,383 | 2,214 | 0.48% | 871,291 | 3,467 | 0.80% | ||||||||||||||
Certificate accounts | 2,401,829 | 26,140 | 2.19% | 2,526,314 | 31,923 | 2.55% | ||||||||||||||
Borrowed funds (f) | 844,793 | 13,153 | 3.14% | 898,169 | 16,578 | 3.72% | ||||||||||||||
Junior subordinated debentures | 103,094 | 2,825 | 5.45% | 103,094 | 2,826 | 5.45% | ||||||||||||||
Total interest-bearing liabilities | 6,146,325 | 47,514 | 1.56% | 6,165,525 | 59,781 | 1.96% | ||||||||||||||
Noninterest bearing liabilities | 705,098 | 604,859 | ||||||||||||||||||
Total liabilities | 6,851,423 | 6,770,384 | ||||||||||||||||||
Shareholders' equity | 1,271,946 | 1,304,325 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 8,123,369 | 8,074,709 | |||||||||||||||||
Net interest income/ Interest rate spread | 137,772 | 3.36% | 127,451 | 3.06% | ||||||||||||||||
Net interest-earning assets/ Net interest margin | $ | 1,402,382 | 3.65% | 1,333,048 | 3.40% | |||||||||||||||
Ratio of interest-earning assets to | ||||||||||||||||||||
interest-bearing liabilities | 1.23X | 1.22X |
(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status. |
(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material. |
(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale. |
(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis. |
(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
(f) Average balances include FHLB borrowings, 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 | |||||||||||||||||||
June 30, 2011 | March 31, 2011 | |||||||||||||||||||
Average | Interest | Avg. | Average | Interest | Avg. | |||||||||||||||
Balance | Yield/ | Balance | Yield/ | |||||||||||||||||
Cost | Cost | |||||||||||||||||||
Assets: | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Loans receivable (a) (b) (d) | $ | 5,484,194 | 80,389 | 5.86 | $ | 5,516,254 | 80,847 | 5.89 | ||||||||||||
Mortgage-backed securities (c) | 917,748 | 6,073 | 2.65 | 926,349 | 6,756 | 2.92 | ||||||||||||||
Investment securities (c) (d) | 392,963 | 5,196 | 5.29 | 354,786 | 5,128 | 5.78 | ||||||||||||||
FHLB stock | 55,100 | - | - | 58,845 | - | - | ||||||||||||||
Other interest-earning deposits | 705,568 | 489 | 0.27 | 685,864 | 407 | 0.24 | ||||||||||||||
Total interest-earning assets | 7,555,573 | 92,147 | 4.87 | 7,542,098 | 93,138 | 4.96 | ||||||||||||||
Noninterest earning assets (e) | 556,085 | 592,981 | ||||||||||||||||||
Total assets | $ | 8,111,658 | $ | 8,135,079 | ||||||||||||||||
Liabilities and shareholders' equity: | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Savings accounts | $ | 1,093,539 | 1,275 | 0.47 | $ | 1,063,696 | 1,429 | 0.55 | ||||||||||||
Interest-bearing demand accounts | 813,179 | 246 | 0.12 | 773,633 | 232 | 0.12 | ||||||||||||||
Money market accounts | 933,288 | 1,059 | 0.46 | 915,768 | 1,155 | 0.51 | ||||||||||||||
Certificate accounts | 2,372,039 | 12,893 | 2.18 | 2,431,952 | 13,247 | 2.21 | ||||||||||||||
Borrowed funds (f) | 841,835 | 6,569 | 3.13 | 847,784 | 6,584 | 3.15 | ||||||||||||||
Junior subordinated debentures | 103,094 | 1,420 | 5.45 | 103,094 | 1,405 | 5.45 | ||||||||||||||
Total interest-bearing liabilities | 6,156,974 | 23,462 | 1.53 | 6,135,927 | 24,052 | 1.59 | ||||||||||||||
Noninterest bearing liabilities | 708,310 | 701,633 | ||||||||||||||||||
Total liabilities | 6,865,284 | 6,837,560 | ||||||||||||||||||
Shareholders' equity | 1,246,374 | 1,297,519 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 8,111,658 | $ | 8,135,079 | ||||||||||||||||
Net interest income/ Interest rate spread | 68,685 | 3.34 | 69,086 | 3.37 | ||||||||||||||||
Net interest-earning assets/ Net interest margin | $ | 1,398,599 | 3.64 | $ | 1,406,171 | 3.66 | ||||||||||||||
Ratio of interest-earning assets to | ||||||||||||||||||||
interest-bearing liabilities | 1.23X | 1.23X |
(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status. |
(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material. |
(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale. |
(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis. |
(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
(f) Average balances include FHLB borrowings, securities sold under agreements to repurchase and other borrowings. |