Northwest Bancshares, Inc. - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - 8-K - Northwest Bancshares, Inc.	a12-9129_38k.htm

EXHIBIT 99.1

PRESS RELEASE OF NORTHWEST BANCSHARES, INC.

EARNINGS RELEASE

FOR IMMEDIATE RELEASE

Contact: William J. Wagner, President and Chief Executive Officer (814) 726-2140

William W. Harvey, Jr., Executive Vice President and Chief Financial Officer (814) 726-2140

Northwest Bancshares, Inc. Announces Quarterly Earnings and Dividend Declaration

Warren, Pennsylvania — April 23, 2012

Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2012 of $15.2 million, or $0.16 per diluted share. This represents a decrease of $2.1 million, or 12.0%, compared to the same quarter last year when net income was $17.3 million, or $0.16 per diluted share, and unchanged compared to the quarter ended December 31, 2011 when net income was also $15.2 million, or $0.16 per diluted share. The annualized returns on average shareholders’ equity and average assets for the current quarter were 5.29% and 0.76% compared to 5.39% and 0.86% for the same quarter last year and 5.23% and 0.76% for the quarter ended December 31, 2011.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.12 per share payable on May 17, 2012, to shareholders of record as of May 3, 2012. This represents the 70th consecutive quarter in which the Company has paid a cash dividend.

In making this announcement, William J. Wagner, President and CEO, noted, “Although Northwest’s earnings for the most recent quarter remain flat from the previous quarter and lower than a year ago, there are many positive trends to report. We experienced net loan growth of $56 million with commercial and commercial real estate loans increasing by $61 million, or 3.3%. Asset quality experienced the most significant improvement in many years as loans delinquent 60 days or more decreased nearly $17 million, or 14.3% during the quarter and are down $37 million, or 27.1% from a year ago. Despite this improvement in credit quality, our provision for loan losses decreased only $1 million, or 13.2% from the same quarter last year as we remain cautious about the sustainability of the economic recovery. Given the recent trading ranges for our common stock, we did not repurchase shares this quarter as we continue to be opportunistic with our buyback program. Finally, we continue to address the various provisions of the FDIC’s Consent Order, all of which relate to consumer compliance, in an effort to be released from this oversight as soon as possible.”

Net interest income decreased by $1.6 million, or 2.4%, to $65.4 million for the quarter ended March 31, 2012, from $67.0 million for the quarter ended March 31, 2011, which was primarily attributable to decreases in interest income from loans of $2.3 million, or 2.9%, and from investment securities of $2.5 million, or 24.6%. Partially offsetting this decrease was a $3.1 million, or 19.4% decrease in interest expense on deposit accounts. These changes from the previous year were primarily due to decreases in market interest rates.

The provision for loan losses decreased by $957,000, or 13.2%, to $6.3 million for the quarter ended March 31, 2012, from $7.2 million for the quarter ended March 31, 2011. As of March 31, 2012, the allowance for loan losses was $72.9 million, or 1.30% of total loans, compared to $76.5 million, or 1.39% of total loans, as of March 31, 2011. Net charge-offs for the quarter ended March 31, 2012 were $4.5 million, or 0.32% of average loans on an annualized basis, compared to $7.2 million, or 0.52% of average loans on an annualized basis, in the previous year. Nonperforming loans decreased $31.1 million, or 19.9%, and the ratio of nonperforming assets to total assets decreased to 1.91% from 2.16% when compared to last year.

Noninterest income decreased by $686,000, or 4.8%, to $13.6 million for the quarter ended March 31, 2012, from $14.3 million in the prior year due primarily to an increase in the loss on real estate owned of $1.0 million. Our inventory of foreclosed properties, currently valued at $28.9 million, continues to be actively managed and this increase resulted both from losses on the sale of properties and write-downs on some of the remaining properties.

Noninterest expense increased by $1.9 million, or 3.8%, to $51.3 million for the quarter ended March 31, 2012, from $49.4 million in the prior year period due primarily to an increase in compensation and employee benefits expense of $2.3 million, or 9.2%. This increase is the result of the adding employees, primarily in the areas of commercial lending, loan servicing, credit review and regulatory compliance and increases in pension expense and health insurance expense.

Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Savings Bank. Founded in 1896, Northwest Savings Bank is a full-service financial institution offering a complete line of business and personal banking products as well as benefits and wealth management services. Northwest operates 168 community banking offices in Pennsylvania, New York, Ohio and Maryland and 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 and the FDIC Consent Order. 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)
	March 31,			December 31,
	2012			2011
Assets
Cash and cash equivalents	$	85,050		94,276
Interest-earning deposits in other financial institutions	672,887			593,388
Federal funds sold and other short-term investments	952			633
Marketable securities available-for-sale (amortized cost of $894,232 and $885,408)	919,578			908,349
Marketable securities held-to-maturity (fair value of $224,630 and $239,412)	216,956			231,389
Total cash, interest-earning deposits and marketable securities	1,895,423			1,828,035

Loans held for sale	14,222			967
Residential mortgage loans	2,412,711			2,396,399
Home equity loans	1,058,938			1,084,786
Other consumer loans	237,591			245,689
Commercial real estate loans	1,475,576			1,435,767
Commercial loans	408,894			387,911
Total loans receivable	5,607,932			5,551,519
Allowance for loan losses	(72,941		)	(71,138		)
Loans receivable, net	5,534,991			5,480,381

Federal Home Loan Bank stock, at cost	47,090			48,935
Accrued interest receivable	25,072			24,599
Real estate owned, net	28,895			26,887
Premises and Equipment, net	133,599			132,152
Bank owned life insurance	134,615			133,524
Goodwill	171,882			171,882
Other intangible assets	1,828			2,123
Other assets	95,613			109,187
Total assets	$	8,069,008		7,957,705

Liabilities and Shareholders’ equity
Liabilities
Noninterest-bearing demand deposits	$	732,361		658,560
Interest-bearing demand deposits	833,342			800,676
Savings deposits	2,124,269			2,036,272
Time deposits	2,179,789			2,284,817
Total deposits	5,869,761			5,780,325
Borrowed funds	836,410			827,925
Advances by borrowers for taxes and insurance	27,683			23,571
Accrued interest payable	1,119			1,104
Other liabilities	68,466			66,782
Junior subordinated debentures	103,094			103,094
Total liabilities	6,906,533			6,802,801

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, 97,593,396 shares and 97,493,046 shares issued, respectively	976			975
Paid-in-capital	660,933			659,523
Retained earnings	547,352			543,598
Unallocated common stock of Employee Stock Ownership Plan	(25,568		)	(25,966		)
Accumulated other comprehensive loss	(21,218		)	(23,226		)
Total shareholders’ equity	1,162,475			1,154,904
Total liabilities and shareholders’ equity	$	8,069,008		7,957,705

Equity to assets	14.41		%	14.51		%
Tangible common equity to assets	12.52		%	12.60		%
Book value per share	$	11.91		$	11.85
Tangible book value per share	$	10.13		$	10.06
Closing market price per share	$	12.70		$	12.44
Full time equivalent employees	1,975			1,950
Number of banking offices	168			168

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income - Unaudited

(Dollars in thousands, except per share amounts)

	Three months ended
	March 31,					December 31,
	2012			2011		2011
Interest income:
Loans receivable	$	78,159		80,457		79,930
Mortgage-backed securities	4,691			6,756		5,077
Taxable investment securities	573			398		776
Tax-free investment securities	2,446			3,074		2,600
Interest-earning deposits	380			407		423
Total interest income	86,249			91,092		88,806

Interest expense:
Deposits	12,944			16,063		14,227
Borrowed funds	7,899			7,989		8,041
Total interest expense	20,843			24,052		22,268

Net interest income	65,406			67,040		66,538
Provision for loan losses	6,287			7,244		10,502
Net interest income after provision for loan losses	59,119			59,796		56,036

Noninterest income:
Impairment losses on securities	(545		)	—		(1,504	)
Noncredit related losses on securities not expected to be sold (recognized in other comprehensive income)	307			—		1,074
Net impairment losses	(238		)	—		(430	)
Gain on sale of investments, net	44			4		157
Service charges and fees	8,425			8,928		8,630
Trust and other financial services income	2,116			1,910		1,967
Insurance commission income	1,718			1,380		1,582
Loss on real estate owned, net	(1,070		)	(27	)	(466	)
Income from bank owned life insurance	1,117			1,166		1,199
Mortgage banking income/ (loss0	531			197		(29	)
Other operating income	997			768		1,428
Total noninterest income	13,640			14,326		14,038

Noninterest expense:
Compensation and employee benefits	27,838			25,499		25,434
Premises and occupancy costs	5,748			6,191		5,556
Office operations	3,324			3,100		3,286
Processing expenses	6,142			5,767		5,982
Marketing expenses	2,036			1,959		3,098
Federal deposit insurance premiums	1,620			2,427		933
Professional services	1,697			1,256		1,441
Amortization of intangible assets	295			491		374
Real estate owned expense	740			431		462
Other expense	1,836			2,257		1,870
Total noninterest expense	51,276			49,378		48,436

Income before income taxes	21,483			24,744		21,638
Income tax expense	6,302			7,491		6,463

Net income	$	15,181		17,253		15,175

Basic earnings per share	$	0.16		0.16		0.16

Diluted earnings per share	$	0.16		0.16		0.16

Annualized return on average shareholders’ equity	5.29		%	5.39	%	5.23	%
Annualized return on average assets	0.76		%	0.86	%	0.76	%

Basic common shares outstanding	94,115,522			106,571,262		93,675,589
Diluted common shares outstanding	94,665,333			107,258,320		93,972,187

Northwest Bancshares, Inc. and Subsidiaries

Asset Quality

(Dollars in thousands)

	Three months ended					Year ended
	March 31,					December 31,
	2012			2011		2011		2010
Allowance for loan losses
Beginning balance	$	71,138		76,412		76,412		70,403
Provision	6,287			7,244		34,170		40,486
Charge-offs residential mortgage	(1,043		)	(1,205	)	(4,198	)	(4,497	)
Charge-offs home equity	(892		)	(2,255	)	(4,734	)	(4,104	)
Charge-offs other consumer	(1,287		)	(1,232	)	(5,283	)	(6,390	)
Charge-offs commercial real estate	(1,473		)	(2,276	)	(12,508	)	(12,576	)
Charge-offs commercial	(649		)	(1,041	)	(15,641	)	(9,305	)
Recoveries	860			803		2,920		2,395
Ending balance	$	72,941		76,450		71,138		76,412

Net charge-offs to average loans, annualized	0.32		%	0.52	%	0.72	%	0.63	%

	March 31,					December 31,
	2012			2011		2011		2010
Nonperforming loans	$	125,013		156,158		131,105		148,391
Real estate owned, net	28,895			19,682		26,887		20,780
Nonperforming assets	$	153,908		175,840		157,992		169,171

Non-accrual troubled debt restructuring *	$	29,606		37,393		29,575		41,740
Accruing troubled debt restructuring	37,697			23,925		39,854		10,865
Total troubled debt restructuring	$	67,303		61,318		69,429		52,605

Nonperforming loans to total loans	2.23		%	2.85	%	2.36	%	2.68	%

Nonperforming assets to total assets	1.91		%	2.16	%	1.99	%	2.08	%

Allowance for loan losses to total loans	1.30		%	1.39	%	1.28	%	1.38	%

Allowance for loan losses to nonperforming loans	58.35		%	48.96	%	54.26	%	51.49	%

* Amounts included in nonperforming loans above.

Northwest Bancshares, Inc. and Subsidiaries

Non-accrual loans delinquency

(Dollars in thousands)

	March 31, 2012		December 31, 2011	March 31, 2011

Non-accrual loans current:
Residential mortgage loans	$	—	—	—
Home equity loans	—		—	—
Other consumer loans	—		—	—
Commercial real estate loans	18,462		13,057	8,372
Commercial loans	4,232		13,480	15,292
Total non-accrual loans current	$	22,694	26,537	23,664

Non-accrual loans delinquent 30 days to 59 days:
Residential mortgage loans	$	—	—	—
Home equity loans	—		—	—
Other consumer loans	—		—	—
Commercial real estate loans	3,068		3,274	2,472
Commercial loans	6,258		90	3,072
Total non-accrual loans delinquent 30 days to 59 days	$	9,326	3,364	5,544

Non-accrual loans delinquent 60 days to 89 days:
Residential mortgage loans	$	—	—	—
Home equity loans	—		—	—
Other consumer loans	—		—	—
Commercial real estate loans	2,269		1,560	1,422
Commercial loans	534		3,808	691
Total non-accrual loans delinquent 60 days to 89 days	$	2,803	5,368	2,113

Non-accrual loans delinquent 90 days or more:
Residential mortgage loans	$	28,696	28,221	28,587
Home equity loans	9,100		9,560	9,300
Other consumer loans	1,983		2,667	2,914
Commercial real estate loans	34,601		44,603	61,561
Commercial loans	15,810		10,785	22,475
Total non- accrual loans delinquent 90 days or more	$	90,190	95,836	124,837

Total non-accrual loans	$	125,013	131,105	156,158

Northwest Bancshares, Inc. and Subsidiaries

Delinquency

(Dollars in thousands)

Loan delinquency schedule

(Number of loans and dollar amount of loans)

	March 31,					December 31,					March 31,
	2012			*		2011			*		2011			*
Loans delinquent 30 days to 59 days:
Residential mortgage loans	366	$	29,414	1.2	%	427	$	33,671	1.4	%	365	$	30,370	1.3	%
Home equity loans	201	7,086		0.7	%	222	7,426		0.7	%	161	5,607		0.5	%
Other consumer loans	647	2,854		1.2	%	903	4,854		2.0	%	659	2,891		1.2	%
Commercial real estate loans	77	9,275		0.6	%	104	10,680		0.7	%	86	12,669		0.9	%
Commercial loans	29	7,069		1.7	%	32	2,027		0.5	%	60	12,519		2.9	%
Total loans delinquent 30 days to 59 days	1,320	$	55,698	1.0	%	1,688	$	58,658	1.1	%	1,331	$	64,056	1.2	%

Loans delinquent 60 days to 89 days:
Residential mortgage loans	22	$	1,466	0.1	%	99	$	8,629	0.4	%	48	$	4,154	0.2	%
Home equity loans	50	2,313		0.2	%	47	1,953		0.2	%	52	2,355		0.2	%
Other consumer loans	262	1,083		0.5	%	412	1,787		0.7	%	262	1,036		0.4	%
Commercial real estate loans	27	3,203		0.2	%	38	3,122		0.2	%	35	3,322		0.2	%
Commercial loans	16	1,376		0.3	%	25	4,958		1.3	%	15	973		0.2	%
Total loans delinquent 60 days to 89 days	377	$	9,441	0.2	%	621	$	20,449	0.4	%	412	$	11,840	0.2	%

Loans delinquent 90 days or more:
Residential mortgage loans	275	$	28,696	1.2	%	273	$	28,221	1.2	%	260	$	28,587	1.2	%
Home equity loans	167	9,100		0.9	%	177	9,560		0.9	%	188	9,300		0.9	%
Other consumer loans	348	1,983		0.8	%	456	2,667		1.1	%	380	2,914		1.2	%
Commercial real estate loans	120	34,601		2.3	%	131	44,603		3.1	%	177	61,561		4.5	%
Commercial loans	56	15,810		3.9	%	66	10,785		2.8	%	75	22,475		5.2	%
Total loans delinquent 90 days or more	966	$	90,190	1.6	%	1,103	$	95,836	1.7	%	1,080	$	124,837	2.3	%

Total loans delinquent	2,663	$	155,329	2.8	%	3,412	$	174,943	3.2	%	2,823	$	200,733	3.7	%

* - 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 March 31, 2012:

(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	$	2,015,380	83.1	%	902,239	85.1	%	218,386	91.9	%	859,567	58.4	%	287,648	70.4	%	4,283,220	76.4	%
New York	159,926		6.6	%	103,293	9.8	%	10,980	4.6	%	364,810	24.7	%	53,588	13.1	%	692,597	12.4	%
Ohio	19,888		0.8	%	11,423	1.1	%	3,018	1.3	%	38,948	2.6	%	11,076	2.7	%	84,353	1.5	%
Maryland	163,022		6.7	%	32,526	3.1	%	1,414	0.6	%	135,606	9.2	%	22,650	5.5	%	355,218	6.3	%
Florida	26,473		1.1	%	7,733	0.7	%	1,279	0.5	%	40,533	2.7	%	16,083	3.9	%	92,101	1.6	%
All other	42,244		1.7	%	1,724	0.2	%	2,514	1.1	%	36,112	2.4	%	17,849	4.4	%	100,443	1.8	%
Total	$	2,426,933	100.0	%	1,058,938	100.0	%	237,591	100.0	%	1,475,576	100.0	%	408,894	100.0	%	5,607,932	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 days or more delinquent:

	Residential mortgage		(7)		Home equity	(8)		Other consumer	(9)		Commercial real estate loans	(10)		Commercial loans	(11)		Total	(12)

Pennsylvania	$	17,794	0.9	%	5,352	0.6	%	1,943	0.9	%	14,663	1.7	%	5,755	2.0	%	45,507	1.1	%
New York	1,181		0.7	%	1,390	1.3	%	31	0.3	%	6,400	1.8	%	294	0.5	%	9,296	1.3	%
Ohio	390		2.0	%	77	0.7	%	2	0.1	%	88	0.2	%	17	0.2	%	574	0.7	%
Maryland	4,707		2.9	%	1,640	5.0	%	—	0.0	%	5,361	4.0	%	2,531	11.2	%	14,239	4.0	%
Florida	3,894		14.7	%	613	7.9	%	7	0.5	%	412	1.0	%	4,625	28.8	%	9,551	10.4	%
All other	730		1.7	%	28	1.6	%	—	0.0	%	7,677	21.3	%	2,588	14.5	%	11,023	11.0	%
Total	$	28,696	1.2	%	9,100	0.9	%	1,983	0.8	%	34,601	2.3	%	15,810	3.9	%	90,190	1.6	%

(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 March 31, 2012:

			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	$	56	—	—		56

Debt issued by government sponsored enterprises:
Due in one year - five years	26,296		44	—		26,340
Due in five years - ten years	29,163		474	—		29,637
Due after ten years	9,125		—	(35	)	9,090

Equity securities	12,398		4,676	(3	)	17,071

Municipal securities:
Due in one year - five years	8,880		245	—		9,125
Due in five years - ten years	26,427		1,093	—		27,520
Due after ten years	116,529		5,905	(110	)	122,324

Corporate trust preferred securities:
Due in one year or less	500		—	—		500
Due after ten years	25,019		275	(6,135	)	19,159

Mortgage-backed securities:
Fixed rate pass-through	102,152		7,528	(16	)	109,664
Variable rate pass-through	129,112		6,636	(4	)	135,744
Fixed rate non-agency CMO	8,280		178	(307	)	8,151
Fixed rate agency CMO	143,158		3,126	—		146,284
Variable rate non-agency CMO	1,023		—	(135	)	888
Variable rate agency CMO	256,114		2,038	(127	)	258,025

Total mortgage-backed securities	639,839		19,506	(589	)	658,756

Total marketable securities available-for-sale	$	894,232	32,218	(6,872	)	919,578

Marketable securities held-to-maturity as of March 31, 2012:

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding		Market
	cost		gains	losses		value

Municipal securities:
Due in five years - ten years	3,678		171	—		3,849
Due after ten years	69,592		3,649	—		73,241

Mortgage-backed securities:
Fixed rate pass-through	22,815		1,117	—		23,932
Variable rate pass-through	8,649		54	—		8,703
Fixed rate agency CMO	100,008		2,436	—		102,444
Variable rate agency CMO	12,214		247	—		12,461

Total mortgage-backed securities	143,686		3,854	—		147,540

Total marketable securities held-to-maturity	$	216,956	7,674	—		224,630

Issuers of mortgage-backed securities as of March 31, 2012:
Fannie Mae	$	327,066	10,624	(84	)	337,606
Ginnie Mae	132,296		4,012	(8	)	136,300
Freddie Mac	296,401		8,546	(21	)	304,926
SBA	17,744		—	(34	)	17,710
Non-agency	10,018		178	(442	)	9,754
Total	$	783,525	23,360	(589	)	806,296

Northwest Bancshares, Inc. and Subsidiaries

Investment Portfolio - Continued

(Dollars in thousands)

	Book		As a %
	value		of book
	3/31/2012		value
Municipal securities by state:
Pennsylvania
School district	$	107,395	47.7	%
General obligation	37,329		16.6	%
Revenue bonds	4,709		2.1	%
Total Pennsylvania	149,433		66.4	%
New York	33,711		15.0	%
Ohio	6,427		2.9	%
All other states	35,535		15.8	%
	$	225,106

Average Balance Sheet - unaudited

(Dollars in thousands)

The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.

	Three months ended March 31,
	2012					2011
				Avg.					Avg.
	Average		Interest	Yield/		Average		Interest	Yield/
	Balance		(h)	Cost		Balance		(h)	Cost
Assets:
Interest-earning assets:
Loans receivable (a) (b) (d)	$	5,579,071	78,691	5.67	%	$	5,516,254	80,847	5.89	%
Mortgage-backed securities (c)	746,954		4,691	2.51	%	926,349		6,756	2.92	%
Investment securities (c) (d)	343,059		4,336	5.06	%	354,786		5,128	5.78	%
FHLB stock	48,246		—	—		58,845		—	—
Other interest-earning deposits	658,747		380	0.23	%	685,864		407	0.24	%

Total interest-earning assets	7,376,077		88,098	4.80	%	7,542,098		93,138	4.96	%

Noninterest earning assets (e)	615,734					592,981

Total assets	$	7,991,811				$	8,135,079

Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Savings accounts	$	1,100,312	1,106	0.40	%	$	1,063,696	1,429	0.55	%
Interest-bearing demand accounts	785,935		227	0.12	%	773,633		232	0.12	%
Money market accounts	976,194		965	0.40	%	915,768		1,155	0.51	%
Certificate accounts	2,236,823		10,646	1.91	%	2,431,952		13,247	2.21	%
Borrowed funds (f)	833,843		6,477	3.12	%	847,784		6,584	3.15	%
Junior subordinated debentures	103,094		1,422	5.46	%	103,094		1,405	5.45	%

Total interest-bearing liabilities	6,036,201		20,843	1.38	%	6,135,927		24,052	1.59	%

Noninterest bearing liabilities (g)	801,157					701,633

Total liabilities	6,837,358					6,837,560

Shareholders’ equity	1,154,453					1,297,519

Total liabilities and shareholders’ equity	$	7,991,811				$	8,135,079

Net interest income/ Interest rate spread			67,255	3.42	%			69,086	3.37	%

Net interest-earning assets/ Net interest margin	$	1,339,876		3.65	%	$	1,406,171		3.66	%

Ratio of interest-earning assets to interest-bearing liabilities	1.22X					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.

(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 for the periods indicated were: Loans - 5.63% and 5.87%, respectively, Investment securities - 3.52% and 3.91%, respectively, Interest-earning assets - 4.70% and 4.83%, respectively. GAAP basis net interest rate spreads were 3.31% and 3.24%, respectively, and GAAP basis net interest margins were 3.55% and 3.56%, respectively.

Average Balance Sheet - unaudited

(Dollars in thousands)

	Three months ended					Three months ended
	March 31, 2012					December 31, 2011
				Avg.					Avg.
	Average		Interest	Yield/		Average		Interest	Yield/
	Balance		(h)	Cost		Balance		(h)	Cost
Assets:
Interest-earning assets:
Loans receivable (a) (b) (d)	$	5,579,071	78,691	5.67	%	$	5,544,194	80,395	5.79	%
Mortgage-backed securities (c)	746,954		4,691	2.51	%	797,071		5,077	2.55	%
Investment securities (c) (d)	343,059		4,336	5.06	%	376,545		4,776	5.07	%
FHLB stock	48,246		—	—		49,775		—	—
Other interest-earning deposits	658,747		380	0.23	%	615,906		423	0.27	%

Total interest-earning assets	7,376,077		88,098	4.80	%	7,383,491		90,671	4.90	%

Noninterest earning assets (e)	615,734					571,873

Total assets	$	7,991,811				$	7,955,364

Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Savings accounts	$	1,100,312	1,106	0.40	%	$	1,064,533	1,139	0.42	%
Interest-bearing demand accounts	785,935		227	0.12	%	787,674		238	0.12	%
Money market accounts	976,194		965	0.40	%	959,378		1,013	0.42	%
Certificate accounts	2,236,823		10,646	1.91	%	2,308,440		11,837	2.03	%
Borrowed funds (f)	833,843		6,477	3.12	%	836,948		6,604	3.13	%
Junior subordinated debentures	103,094		1,422	5.46	%	103,094		1,437	5.45	%

Total interest-bearing liabilities	6,036,201		20,843	1.38	%	6,060,067		22,268	1.46	%

Noninterest bearing liabilities (g)	801,157					734,898

Total liabilities	6,837,358					6,794,965

Shareholders’ equity	1,154,453					1,160,399

Total liabilities and shareholders’ equity	$	7,991,811				$	7,955,364

Net interest income/ Interest rate spread			67,255	3.42	%			68,403	3.44	%

Net interest-earning assets/ Net interest margin	$	1,339,876		3.65	%	$	1,323,424		3.71	%

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.

(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 for the periods indicated were: Loans - 5.63% and 5.76%, respectively, Investment securities - 3.52% and 3.59%, respectively,Interest-earning assets - 4.70% and 4.80%, respectively. GAAP basis net interest rate spreads were 3.31% and 3.34%, respectively, and GAAP basis net interest margins were 3.55% and 3.60%, respectively.

Attached files

Northwest Bancshares, Inc. Reports

Also read