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

		December 31,
Assets		2011				2010
Cash and cash equivalents		$	94,276				40,708
Interest-earning deposits in other financial institutions			593,388				677,771
Federal funds sold and other short-term investments			633				632
Marketable securities available-for-sale (amortized cost of $885,408 and $945,571)			908,349				950,463
Marketable securities held-to-maturity (fair value of $239,412 and $354,126)			231,389				357,922
Total cash, interest-earning deposits and marketable securities			1,828,035				2,027,496
Loans held for sale			967				11,376
Residential mortgage loans			2,396,399				2,386,928
Home equity loans			1,084,786				1,095,953
Other consumer loans			245,689				255,776
Commercial real estate loans			1,435,767				1,350,319
Commercial loans			387,911				433,653
Total loans receivable			5,551,519				5,534,005
Allowance for loan losses			(71,138	)			(76,412	)
Loans receivable, net			5,480,381				5,457,593
Federal Home Loan Bank stock, at cost			48,935				60,080
Accrued interest receivable			25,502				26,216
Real estate owned, net			26,887				20,780
Premises and Equipment, net			132,152				128,101
Bank owned life insurance			133,524				132,237
Goodwill			171,882				171,882
Other intangible assets			2,123				3,942
Other assets			107,203				119,828
Total assets		$	7,956,624				8,148,155
Liabilities and Shareholders' equity
Liabilities
Noninterest-bearing demand deposits		$	658,560				575,281
Interest-bearing demand deposits			800,676				782,257
Savings deposits			2,036,272				1,948,882
Time deposits			2,284,817				2,457,916
Total deposits			5,780,325				5,764,336
Borrowed funds			827,925				891,293
Advances by borrowers for taxes and insurance			23,571				22,868
Accrued interest payable			1,104				1,716
Other liabilities			66,782				57,398
Junior subordinated debentures			103,094				103,094
Total liabilities			6,802,801				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, 97,493,046 shares and 110,295,117 shares issued, respectively			975				1,103
Paid-in-capital			659,523				824,164
Retained earnings			543,598				523,089
Unallocated common stock of Employee Stock Ownership Plan			(27,047	)			(27,409	)
Accumulated other comprehensive loss			(23,226	)			(13,497	)
Total shareholders' equity			1,153,823				1,307,450
Total liabilities and shareholders' equity		$	7,956,624				8,148,155

Equity to assets			14.50	%			16.05	%
Tangible common equity to assets			12.59	%			14.19	%
Book value per share		$	11.83			$	11.85
Tangible book value per share		$	10.05			$	10.26
Closing market price per share		$	12.44			$	11.78
Full time equivalent employees			1,950				1,897
Number of banking offices			168				171

 

 

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

		Three months ended
		December 31,								September 30,
		2011				2010				2011
Interest income:
Loans receivable		$	79,930				83,096				80,562
Mortgage-backed securities			5,077				5,886				5,544
Taxable investment securities			776				428				684
Tax-free investment securities			2,600				3,111				2,848
Interest-earning deposits			423				496				393
Total interest income			88,806				93,017				90,031
Interest expense:
Deposits			14,227				17,025				14,958
Borrowed funds			8,041				8,762				8,061
Total interest expense			22,268				25,787				23,019
Net interest income			66,538				67,230				67,012
Provision for loan losses			10,502				13,918				8,057
Net interest income after provision
for loan losses			56,036				53,312				58,955
Noninterest income:
Impairment losses on securities			(1,205	)			(1,841	)			—
Noncredit related losses on securities not expected to be sold (recognized in other comprehensive income)			775				1,006				—
Net impairment losses			(430	)			(835	)			—
Gain on sale of investments, net			157				8				152
Service charges and fees			8,630				9,296				8,499
Trust and other financial services income			1,967				1,907				2,063
Insurance commission income			1,582				1,362				1,796
Loss on real estate owned, net			(466	)			(279	)			(1,340	)
Income from bank owned life insurance			1,199				1,228				1,938
Mortgage banking (loss)/ income			(29	)			1,423				400
Other operating income			1,428				1,058				1,002
Total noninterest income			14,038				15,168				14,510
Noninterest expense:
Compensation and employee benefits			25,434				25,328				26,004
Premises and occupancy costs			5,556				5,675				5,658
Office operations			3,286				3,233				3,209
Processing expenses			5,982				6,041				5,896
Marketing expenses			3,098				2,930				2,788
Federal deposit insurance premiums			933				2,334				1,386
Professional services			1,441				291				1,238
Amortization of intangible assets			374				518				475
Real estate owned expense			462				636				483
Acquisition expense			—				591				—
Other expense			1,870				3,122				2,786
Total noninterest expense			48,436				50,699				49,923
Income before income taxes			21,638				17,781				23,542
Income tax expense			6,463				5,043				6,822
Net income		$	15,175				12,738				16,720
Basic earnings per share		$	0.16				0.12				0.17
Diluted earnings per share		$	0.16				0.12				0.17
Annualized return on average shareholders' equity			5.23	%			3.90	%			5.62	%
Annualized return on average assets			0.76	%			0.63	%			0.83	%
Basic common shares outstanding			93,675,589				108,337,001				96,918,016
Diluted common shares outstanding			93,972,187				108,848,189				97,124,328

 

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

		Year ended
		December 31,
		2011				2010
Interest income:
Loans receivable		$	320,942				328,948
Mortgage-backed securities			23,450				25,271
Taxable investment securities			2,452				2,514
Tax-free investment securities			11,514				11,738
Interest-earning deposits			1,712				2,097
Total interest income			360,070				370,568
Interest expense:
Deposits			60,721				75,174
Borrowed funds			32,080				37,753
Total interest expense			92,801				112,927
Net interest income			267,269				257,641
Provision for loan losses			34,170				40,486
Net interest income after provision
for loan losses			233,099				217,155
Noninterest income:
Impairment losses on securities			(1,782	)			(2,741	)
Noncredit related losses on securities not expected to be sold (recognized in other comprehensive income)			845				1,193
Net impairment losses			(937	)			(1,548	)
Gain on sale of investments, net			358				2,208
Service charges and fees			35,378				37,921
Trust and other financial services income			8,125				7,252
Insurance commission income			6,548				5,190
Loss on real estate owned, net			(2,426	)			(2,572	)
Income from bank owned life insurance			6,019				5,080
Mortgage banking income			858				2,196
Other operating income			4,213				4,671
Total noninterest income			58,136				60,398
Noninterest expense:
Compensation and employee benefits			106,595				100,709
Premises and occupancy costs			23,055				22,665
Office operations			12,850				13,864
Processing expenses			23,332				23,152
Marketing expenses			9,953				9,875
Federal deposit insurance premiums			7,101				9,054
Professional services			5,224				2,728
Amortization of intangible assets			1,819				2,784
Real estate owned expense			1,625				2,901
Acquisition expense			—				1,229
Other expense			8,673				7,547
Total noninterest expense			200,227				196,508
Income before income taxes			91,008				81,045
Income tax expense			26,857				23,522
Net income		$	64,151				57,523
Basic earnings per share		$	0.64				0.53
Diluted earnings per share		$	0.64				0.53
Annualized return on average shareholders' equity			5.24	%			4.40	%
Annualized return on average assets			0.80	%			0.71	%
Basic common shares outstanding			99,801,783				108,308,834
Diluted common shares outstanding			100,177,564				108,931,377

 

 

Northwest Bancshares, Inc. and Subsidiaries
Asset Quality
(Dollars in thousands)

		Three months ended								Year ended
		December 31,								December 31,
		2011				2010				2011				2010
Allowance for loan losses
Beginning balance		$	73,208				77,245				76,412				70,403
Provision			10,502				13,918				34,170				40,486
Charge-offs residential mortgage			(1,530	)			(2,550	)			(4,198	)			(4,497	)
Charge-offs home equity			(998	)			(1,146	)			(4,734	)			(4,104	)
Charge-offs other consumer			(1,467	)			(1,643	)			(5,283	)			(6,390	)
Charge-offs commercial real estate			(4,288	)			(5,953	)			(12,508	)			(12,576	)
Charge-offs commercial			(4,935	)			(4,365	)			(15,641	)			(9,305	)
Recoveries			646				906				2,920				2,395
Ending balance		$	71,138				76,412				71,138				76,412
Net charge-offs to average loans, annualized			0.91	%			1.06	%			0.72	%			0.63	%

 

		December 31,
		2011				2010				2009				2008
Nonperforming loans		$	131,105				148,391				124,626				99,203
Real estate owned, net			26,887				20,780				20,257				16,844
Nonperforming assets		$	157,992				169,171				144,883				116,047
Non-accrual troubled debt restructuring *		$	26,908				41,740				2,908				—
Accruing troubled debt restructuring			39,854				10,865				18,177				—
Total troubled debt restructuring		$	66,762				52,605				21,085				—
Nonperforming loans to total loans			2.36	%			2.68	%			2.35	%			1.91	%
Nonperforming assets to total assets			1.99	%			2.08	%			1.81	%			1.67	%
Allowance for loan losses to total loans			1.28	%			1.38	%			1.33	%			1.06	%
Allowance for loan losses to nonperforming loans			54.26	%			51.49	%			56.49	%			55.37	%
* Amounts included in nonperforming loans above

 

 

Northwest Bancshares, Inc. and Subsidiaries
Non-accrual loans delinquency
(Dollars in thousands)

		December 31, 2011				December 31, 2010				December 31, 2009
Non-accrual loans current:
Residential mortgage loans		$	—				—				—
Home equity loans			—				—				—
Other consumer loans			—				—				—
Commercial real estate loans			13,057				7,378				—
Commercial loans			13,480				23,317				13,141
Total non-accrual loans current		$	26,537				30,695				13,141
Non-accrual loans delinquent 30 days to 59 days:
Residential mortgage loans		$	—				—				—
Home equity loans			—				—				—
Other consumer loans			—				—				—
Commercial real estate loans			3,274				4,039				—
Commercial loans			90				1,465				—
Total non-accrual loans delinquent 30 days to 59 days		$	3,364				5,504				—
Non-accrual loans delinquent 60 days to 89 days:
Residential mortgage loans		$	—				—				—
Home equity loans			—				—				—
Other consumer loans			—				—				—
Commercial real estate loans			1,560				10,923				1,705
Commercial loans			3,808				848				—
Total non-accrual loans delinquent 60 days to 89 days		$	5,368				11,771				1,705
Non-accrual loans delinquent 90 days or more:
Residential mortgage loans		$	28,221				29,751				29,134
Home equity loans			9,560				10,263				10,008
Other consumer loans			2,667				2,565				2,775
Commercial real estate loans			44,603				44,965				49,594
Commercial loans			10,785				12,877				18,269
Total non- accrual loans delinquent 90 days or more		$	95,836				100,421				109,780
Total non-accrual loans		$	131,105				148,391				124,626

 

Northwest Bancshares, Inc. and Subsidiaries

Delinquency

(Dollars in thousands)

Loan delinquency schedule

(Number of loans and dollar amount of loans)

		December 31,
		2011								*				2010								*				2009								*
Loans delinquent 30 days to 59 days:
Residential mortgage loans			427			$	33,671				1.4	%			427			$	35,329				1.5	%			343			$	27,913				1.2	%
Home equity loans			222				7,426				0.7	%			230				7,317				0.7	%			184				7,014				0.6	%
Other consumer loans			903				4,854				2.0	%			1,008				5,318				2.1	%			923				4,297				1.6	%
Commercial real estate loans			104				10,680				0.7	%			82				16,287				1.2	%			85				16,152				1.3	%
Commercial loans			32				2,027				0.5	%			48				6,590				1.5	%			48				3,293				0.9	%
Total loans delinquent 30 days to 59 days			1,688			$	58,658				1.1	%			1,795			$	70,841				1.3	%			1,583			$	58,669				1.1	%
Loans delinquent 60 days to 89 days:
Residential mortgage loans			99			$	8,629				0.4	%			106			$	9,848				0.4	%			77			$	6,657				0.3	%
Home equity loans			47				1,953				0.2	%			81				3,249				0.3	%			52				1,719				0.2	%
Other consumer loans			412				1,787				0.7	%			356				1,331				0.5	%			348				1,425				0.5	%
Commercial real estate loans			38				3,122				0.2	%			39				14,365				1.1	%			35				5,811				0.5	%
Commercial loans			25				4,958				1.3	%			9				1,678				0.4	%			26				2,474				0.7	%
Total loans delinquent 60 days to 89 days			621			$	20,449				0.4	%			591			$	30,471				0.6	%			538			$	18,086				0.3	%
Loans delinquent 90 days or more:
Residential mortgage loans			273			$	28,221				1.2	%			275			$	29,751				1.2	%			265			$	29,134				1.2	%
Home equity loans			177				9,560				0.9	%			190				10,263				0.9	%			195				10,008				0.9	%
Other consumer loans			456				2,667				1.1	%			374				2,565				1.0	%			546				2,775				1.0	%
Commercial real estate loans			131				44,603				3.1	%			181				44,965				3.3	%			199				49,594				4.0	%
Commercial loans			66				10,785				2.8	%			111				12,877				3.0	%			124				18,269				4.9	%
Total loans delinquent 90 days or more			1,103			$	95,836				1.7	%			1,131			$	100,421				1.8	%			1,329			$	109,780				2.1	%
Total loans delinquent			3,412			$	174,943				3.2	%			3,517			$	201,733				3.7	%			3,450			$	186,535				3.5	%

 

* - Represents delinquency, in dollars, divided by the respective total amount of that class of loan outstanding

 

Northwest Bancshares, Inc. and Subsidiaries

Analysis of loan portfolio by geographic location as of December 31, 2011:

(Dollars in thousands)

Loans outstanding:

 

		Residential Mortgage				(1)				Home equity				(2)				Other consumer				(3)				Commercial real estate loans				(4)				Commercial loans				(5)				Total				(6)
Pennsylvania		$	1,978,512				82.5	%			925,368				85.3	%			225,827				91.9	%			849,702				59.2	%			258,775				66.7	%			4,238,184				76.3	%
New York			159,389				6.6	%			104,194				9.6	%			11,191				4.6	%			356,868				24.9	%			56,128				14.5	%			687,770				12.4	%
Ohio			19,895				0.8	%			11,677				1.1	%			3,022				1.2	%			35,882				2.5	%			10,072				2.6	%			80,548				1.5	%
Maryland			168,247				7.0	%			33,816				3.1	%			1,417				0.6	%			114,839				8.0	%			25,942				6.7	%			344,261				6.2	%
Florida			27,551				1.1	%			8,057				0.7	%			1,473				0.6	%			40,904				2.8	%			17,340				4.5	%			95,325				1.7	%
All other			43,772				1.8	%			1,674				0.2	%			2,759				1.1	%			37,572				2.6	%			19,654				5.1	%			105,431				1.9	%
Total		$	2,397,366				100.0	%			1,084,786				100.0	%			245,689				100.0	%			1,435,767				100.0	%			387,911				100.0	%			5,551,519				100.0	%

 

(1) - Percentage of total mortgage loans

(2) - Percentage of total home equity loans

(3) - Percentage of total other 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:

 

		Residential Mortgage				(7)				Home equity				(8)				Other consumer				(9)				Commercial real estate loans				(10)				Commercial loans				(11)				Total				(12)
Pennsylvania		$	16,971				0.9	%			6,559				0.7	%			2,537				1.1	%			17,753				2.1	%			5,075				2.0	%			48,895				1.2	%
New York			1,358				0.9	%			1,031				1.0	%			54				0.5	%			8,625				2.4	%			281				0.5	%			11,349				1.7	%
Ohio			305				1.5	%			23				0.2	%			23				0.8	%			88				0.2	%			—				0.0	%			439				0.5	%
Maryland			4,436				2.6	%			1,496				4.4	%			—				0.0	%			6,573				5.7	%			2,514				9.7	%			15,019				4.4	%
Florida			4,312				15.7	%			422				5.2	%			53				3.6	%			4,407				10.8	%			2,915				16.8	%			12,109				12.7	%
All other			839				1.9	%			29				1.7	%			—				0.0	%			7,157				19.0	%			—				0.0	%			8,025				7.6	%
Total		$	28,221				1.2	%			9,560				0.9	%			2,667				1.1	%			44,603				3.1	%			10,785				2.8	%			95,836				1.7	%

 

(7) - Percentage of total mortgage loans in that geographic area

(8) - Percentage of total home equity loans in that geographic area

(9) - Percentage of total other 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 December 31, 2011:

						Gross				Gross
						unrealized				unrealized
		Amortized				holding				holding				Market
		cost				gains				losses				value
Debt issued by the U.S. government and agencies:
Due in one year or less		$	59				—				—				59
Debt issued by government sponsored enterprises:
Due in one year - five years			36,295				134				—				36,429
Due in five years - ten years			29,557				638				(61	)			30,134
Due after ten years			9,665				—				(49	)			9,616
Equity securities			12,080				644				(259	)			12,465
Municipal securities:
Due in one year - five years			10,633				291				—				10,924
Due in five years - ten years			27,817				1,336				—				29,153
Due after ten years			124,041				5,350				(180	)			129,211
Corporate trust preferred securities:
Due in one year or less			500				—				—				500
Due after ten years			25,036				233				(4,635	)			20,634
Mortgage-backed securities:
Fixed rate pass-through			110,364				8,201				(1	)			118,564
Variable rate pass-through			135,103				6,679				(4	)			141,778
Fixed rate non-agency CMO			9,521				188				(735	)			8,974
Fixed rate agency CMO			112,670				3,466				—				116,136
Variable rate non-agency CMO			1,104				—				(154	)			950
Variable rate agency CMO			240,963				1,991				(132	)			242,822
Total mortgage-backed securities			609,725				20,525				(1,026	)			629,224
Total marketable securities available-for-sale		$	885,408				29,151				(6,210	)			908,349

 

Marketable securities held-to-maturity as of December 31, 2011:

 

						Gross				Gross
						unrealized				unrealized
		Amortized				holding				holding				Market
		cost				gains				losses				value
Municipal securities:
Due in five years - ten years			3,677				174				—				3,851
Due after ten years			71,015				3,615				—				74,630
Mortgage-backed securities:
Fixed rate pass-through			24,160				1,099				—				25,259
Variable rate pass-through			9,066				94				—				9,160
Fixed rate agency CMO			108,881				2,761				—				111,642
Variable rate agency CMO			14,590				280				—				14,870
Total mortgage-backed securities			156,697				4,234				—				160,931
Total marketable securities held-to-maturity		$	231,389				8,023				—				239,412
Issuers of mortgage-backed securities as of December 31, 2011:
Fannie Mae		$	324,439				11,487				(73	)			335,853
Ginnie Mae			139,901				4,050				—				143,951
Freddie Mac			272,095				9,034				(51	)			281,078
SBA			18,637				—				(13	)			18,624
Non-agency			11,350				188				(889	)			10,649
Total		$	766,422				24,759				(1,026	)			790,155

 

Northwest Bancshares, Inc. and Subsidiaries

Investment Portfolio - Continued

(Dollars in thousands)

 

		Book				As a %
		Value				of Book
		12/31/2011				Value
Municipal securities by state:
Pennsylvania
School district		$	114,699				48.4	%
General obligation			41,766				17.6	%
Revenue bonds			4,709				2.0	%
Total Pennsylvania			161,174				68.0	%
New York			33,679				14.2	%
Ohio			6,426				2.7	%
All other states			35,904				15.1	%
		$	237,183

 

 

 

 

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 December 31,
		2011												2010
		Average				Interest				Avg.				Average				Interest				Avg.
		Balance				(h)				Yield/				Balance				(h)				Yield/
										Cost												Cost
Assets:
Interest-earning assets:
Loans receivable (a) (b) (d)		$	5,544,194				80,395				5.79	%			5,565,989				83,491				5.99	%
Mortgage-backed securities (c)			797,071				5,077				2.55	%			879,958				5,886				2.68	%
Investment securities (c) (d)			376,545				4,776				5.07	%			365,003				5,213				5.71	%
FHLB stock			49,775				—				—				61,042				—				—
Other interest-earning deposits			615,906				423				0.27	%			721,174				496				0.27	%
Total interest-earning assets			7,383,491				90,671				4.90	%			7,593,166				95,086				5.00	%
Noninterest earning assets (e)			571,873												588,945
Total assets		$	7,955,364												8,182,111
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings accounts		$	1,064,533				1,139				0.42	%			1,058,373				1,695				0.64	%
Interest-bearing demand accounts			787,674				238				0.12	%			786,488				249				0.13	%
Money market accounts			959,378				1,013				0.42	%			906,414				1,209				0.53	%
Certificate accounts			2,308,440				11,837				2.03	%			2,456,893				13,872				2.24	%
Borrowed funds (f)			836,948				6,604				3.13	%			892,461				7,326				3.26	%
Junior subordinated debentures			103,094				1,437				5.45	%			103,094				1,436				5.45	%
Total interest-bearing liabilities			6,060,067				22,268				1.46	%			6,203,723				25,787				1.65	%
Noninterest bearing liabilities (g)			734,898												671,412
Total liabilities			6,794,965												6,875,135
Shareholders' equity			1,160,399												1,306,976
Total liabilities and shareholders' equity		$	7,955,364												8,182,111
Net interest income/ Interest rate spread							68,403				3.44	%							69,299				3.35	%
Net interest-earning assets/ Net interest margin		$	1,323,424								3.71	%			1,389,443								3.65	%
Ratio of interest-earning assets to
interest-bearing liabilities			1.22	X											1.22	X

 

(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status

(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material

(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale

(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis

(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale

(f) Average balances include FHLB borrowings, securities sold under agreements to repurchase and other borrowings

(g) Average balances include non-interest bearing demand deposits (checking accounts)

(h) Shown on a FTE basis. GAAP basis yields were: Loans - 5.76% and 5.96%, respectively, Investment securities - 3.59% and 3.88%, respectively,

Interest-earning assets - 4.80% and 4.89%, respectively. GAAP basis net interest rate spreads were 3.34% and 3.24%, respectively,

and GAAP basis net interest margins were 3.60% and 3.54%, respectively

 

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

 

		Year ended December 31,
		2011												2010
		Average				Interest				Avg.				Average				Interest				Avg.
		Balance				(h)				Yield/				Balance				(h)				Yield/
										Cost												Cost
Assets:
Interest-earning assets:
Loans receivable (a) (b) (d)		$	5,508,790				322,656				5.85	%			5,487,645				330,431				6.03	%
Mortgage-backed securities (c)			874,366				23,450				2.68	%			816,182				25,271				3.10	%
Investment securities (c) (d)			384,389				20,166				5.25	%			369,858				20,572				5.56	%
FHLB stock			53,985				—				—				62,688				—				—
Other interest-earning deposits			665,074				1,712				0.25	%			805,161				2,097				0.26	%
Total interest-earning assets			7,486,604				367,984				4.91	%			7,541,534				378,371				5.02	%
Noninterest earning assets (e)			570,888												578,317
Total assets		$	8,057,492												8,119,851
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings accounts		$	1,075,890				5,000				0.46	%			1,031,362				8,166				0.79	%
Interest-bearing demand accounts			793,287				960				0.12	%			776,091				1,211				0.16	%
Money market accounts			939,317				4,243				0.45	%			888,081				5,977				0.67	%
Certificate accounts			2,362,313				50,518				2.14	%			2,483,481				59,820				2.41	%
Borrowed funds (f)			841,748				26,381				3.13	%			896,843				32,054				3.57	%
Junior subordinated debentures			103,094				5,699				5.45	%			103,094				5,699				5.45	%
Total interest-bearing liabilities			6,115,649				92,801				1.52	%			6,178,952				112,927				1.83	%
Noninterest bearing liabilities (g)			718,434												634,119
Total liabilities			6,834,083												6,813,071
Shareholders' equity			1,223,409												1,306,780
Total liabilities and shareholders' equity		$	8,057,492												8,119,851
Net interest income/ Interest rate spread							275,183				3.39	%							265,444				3.19	%
Net interest-earning assets/ Net interest margin		$	1,370,955								3.68	%			1,362,582								3.52	%
Ratio of interest-earning assets to
interest-bearing liabilities			1.22	X											1.22	X

 

(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status

(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material

(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale

(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis

(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale

(f) Average balances include FHLB borrowings, securities sold under agreements to repurchase and other borrowings

(g) Average balances include non-interest bearing demand deposits (checking accounts)

(h) Shown on a FTE basis. GAAP basis yields were: Loans - 5.82% and 6.00%, respectively, Investment securities - 3.63% and 3.85%, respectively,

Interest-earning assets - 4.80% and 4.92%, respectively. GAAP basis net interest rate spreads were 3.29% and 3.09%, respectively,

and GAAP basis net interest margins were 3.57% and 3.42%, respectively

 

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
		December 31, 2011												September 30, 2011
		Average				Interest				Avg.				Average				Interest				Avg.
		Balance				(h)				Yield/				Balance				(h)				Yield/
										Cost												Cost
Assets:
Interest-earning assets:
Loans receivable (a) (b) (d)		$	5,544,194				80,395				5.79	%			5,490,795				81,025				5.86	%
Mortgage-backed securities (c)			797,071				5,077				2.55	%			857,898				5,544				2.58	%
Investment securities (c) (d)			376,545				4,776				5.07	%			412,927				5,066				4.91	%
FHLB stock			49,775				—				—				52,336				—				—
Other interest-earning deposits			615,906				423				0.27	%			652,958				393				0.24	%
Total interest-earning assets			7,383,491				90,671				4.90	%			7,466,914				92,028				4.90	%
Noninterest earning assets (e)			571,873												560,951
Total assets		$	7,955,364												8,027,865
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings accounts		$	1,064,533				1,139				0.42	%			1,081,721				1,157				0.42	%
Interest-bearing demand accounts			787,674				238				0.12	%			798,424				244				0.12	%
Money market accounts			959,378				1,013				0.42	%			950,113				1,016				0.42	%
Certificate accounts			2,308,440				11,837				2.03	%			2,338,436				12,541				2.13	%
Borrowed funds (f)			836,948				6,604				3.13	%			840,560				6,625				3.13	%
Junior subordinated debentures			103,094				1,437				5.45	%			103,094				1,436				5.45	%
Total interest-bearing liabilities			6,060,067				22,268				1.46	%			6,112,348				23,019				1.49	%
Noninterest bearing liabilities (g)			734,898												726,173
Total liabilities			6,794,965												6,838,521
Shareholders' equity			1,160,399												1,189,344
Total liabilities and shareholders' equity		$	7,955,364												8,027,865
Net interest income/ Interest rate spread							68,403				3.44	%							69,009				3.41	%
Net interest-earning assets/ Net interest margin		$	1,323,424								3.71	%			1,354,566								3.70	%
Ratio of interest-earning assets to
interest-bearing liabilities			1.22	X											1.22	X

 

(a) Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status

(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material

(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale

(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis

(e) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale

(f) Average balances include FHLB borrowings, securities sold under agreements to repurchase and other borrowings

(g) Average balances include non-interest bearing demand deposits (checking accounts)

(h) Shown on a FTE basis. GAAP basis yields were: Loans - 5.76% and 5.82%, respectively, Investment securities - 3.59% and 3.42%, respectively,

Interest-earning assets - 4.80% and 4.79%, respectively. GAAP basis net interest rate spreads were 3.34% and 3.29%, respectively,

and GAAP basis net interest margins were 3.60% and 3.59%, respectively