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Northwest Bancshares, Inc. Announces First Quarter 2015 Earnings and Quarterly Dividend

NWBI

WARREN, Pa., April 20, 2015 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2015 of $16.2 million, or $0.18 per diluted share. This represents an increase of $1.6 million, or 10.7%, compared to the same quarter last year when net income was $14.6 million, or $0.16 per diluted share.  The annualized returns on average shareholders' equity and average assets for the quarter ended March 31, 2015 were 6.17% and 0.83% compared to 5.15% and 0.75% for the same quarter last year. 

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.14 per share payable on May 14, 2015, to shareholders of record as of April 30, 2015.  This represents the 82nd consecutive quarter in which the Company has paid a cash dividend. 

In making this announcement, William J. Wagner, President and CEO, noted, "The first quarter of 2015 was highlighted by solid loan growth of $75 million, further improvement in asset quality and continued consistency in our interest rate spread and margin. We also continued to demonstrate success in increasing checking and fee-based products while controlling operating costs through enhanced efficiency. The management of capital remains a focal point, and we were pleased this quarter to utilize excess capital by paying an attractive regular dividend and repurchasing 318,000 of our shares at an average share price of $11.92." 

Net interest income increased by $732,000, or 1.2%, to $61.6 million for the quarter ended March 31, 2015, from $60.8 million for the quarter ended March 31, 2014. This increase was due primarily to an increase in interest income on loans receivable of $1.4 million and a decrease in interest paid on deposit accounts of $724,000.  Partially offsetting these factors was a decrease in interest received on investment securities of $901,000 and an increase in interest paid on borrowed funds of $419,000.  The favorable changes from the previous year were due primarily to loan growth of more than $200.0 million and continued success in increasing low-cost deposits.  

The provision for loan losses decreased by $6.6 million, or 88.0%, to $900,000 for the quarter ended March 31, 2015, from $7.5 million for the quarter ended March 31, 2014. The minimal provision for loan losses reflects continued improvements in asset quality as loans 90 days or more delinquent decreased $18.5 million, or 36.0%, compared to a year ago while total nonaccrual loans decreased $35.8 million, or 32.8%.

Noninterest income decreased by $3.7 million, or 18.5%, to $16.0 million for the quarter ended March 31, 2015, from $19.7 million for the quarter ended March 31, 2014.  This decrease is due primarily to decreases in gain on sale of investments of $3.3 million and an increase in loss on real estate owned of $911,000. The prior year gain on sale of investments resulted from the sale of $6.1 million of bank stocks while the loss on real estate owned was due primarily to the write-down of one commercial property. Partially offsetting these factors was an increase in other operating income of $788,000, due primarily to a special dividend of $1.0 million from the Federal Home Loan Bank of Pittsburgh. 

Noninterest expense increased by $548,000, or 1.0%, to $53.7 million for the quarter ended March 31, 2015, from $53.2 million for the quarter ended March 31, 2014. Processing expenses increased by $616,000 due primarily to amortization of software upgrades made during the past two years. Marketing expenses increased by $339,000 due primarily to the timing of various campaign costs. Additionally, expenses totaling $347,000 were incurred during the quarter ended March 31, 2015 which related to the proposed acquisition of LNB Bancorp, Inc.

On December 15, 2014, the Company announced that it had entered into a definitive merger agreement to acquire LNB Bancorp, Inc. and its wholly-owned subsidiary, Lorain National Bank which operates 20 community banking offices in northeast Ohio and, as of December 31, 2014, had assets of approximately $1.2 billion.  The acquisition is expected to close during the third quarter of 2015.

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, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. Northwest operates 161 community banking offices in Pennsylvania, New York, Ohio and Maryland and 51 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 ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwestsavingsbank.com

Forward-Looking Statements - This 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; (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 commercial real-estate and business 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. 

Important Additional Information and Where to Find It
In connection with the proposed acquisition of LNB Bancorp, Inc. on March 9, 2015 the Company filed a Registration Statement on Form S-4 with the SEC that includes a preliminary Proxy Statement of LNB Bancorp, Inc. and a preliminary Prospectus of Northwest Bancshares, as well as other relevant documents concerning the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. SHAREHOLDERS OF LNB BANCORP ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

A free copy of the Proxy Statement/Prospectus, as well as other filings containing information about Northwest Bancshares and LNB Bancorp, may be obtained at the SEC's Internet site (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from Northwest Bancshares at www.northwestsavingsbank.com under the heading "Investor Relations" and then under "SEC Filings" or from LNB Bancorp by accessing LNB Bancorp's website at www.4lnb.com under the heading "Investor Relations" and then under "SEC Filings." Copies of the Proxy Statement/Prospectus can also be obtained, free of charge, by directing a request to Northwest Bancshares, Inc., 100 Liberty Street, Warren, Pennsylvania 16365, Attention: Investor Relations, Telephone: (814) 726-2140 or to LNB Bancorp, Inc., 457 Broadway, Lorain, Ohio 44052, Attention: Investor Relations, Telephone: (440) 244-7317.

LNB Bancorp and Northwest Bancshares and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of LNB Bancorp in connection with the proposed merger. Information about the directors and executive officers of LNB Bancorp and their ownership of LNB Bancorp common stock is set forth in the proxy statement for LNB Bancorp's 2014 annual meeting of shareholders, as filed with the SEC on Schedule 14A on March 11, 2014. Information about the directors and executive officers of Northwest Bancshares is set forth in the proxy statement for Northwest Bancshares' 2015 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 4, 2015.  Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the proposed merger. Free copies of this document may be obtained as described in the preceding paragraph.

 

Northwest Bancshares, Inc. and Subsidiaries



Consolidated Statements of Financial Condition



(Dollars in thousands, except per share amounts)
























March 31,


December 31,



Assets


2015


2014



Cash and cash equivalents




$                      83,970


87,401



Interest-earning deposits in other financial institutions


212,496


152,671



Federal funds sold and other short-term investments


635


634



Marketable securities available-for-sale (amortized cost of $906,028 and $906,702)

916,423


912,371



Marketable securities held-to-maturity (fair value of $92,989 and $106,292)


90,825


103,695




Total cash, interest-earning deposits and marketable securities


1,304,349


1,256,772
















Residential mortgage loans




2,543,870


2,521,456



Home equity loans 






1,055,739


1,066,131



Other consumer loans





239,956


242,744



Commercial real estate loans



1,856,574


1,801,184



Commercial loans






368,725


358,376




Total loans receivable




6,064,864


5,989,891



Allowance for loan losses




(67,298)


(67,518)




Loans receivable, net




5,997,566


5,922,373
















Federal Home Loan Bank stock, at cost



36,292


33,293



Accrued interest receivable




19,753


18,623



Real estate owned, net





15,346


16,759



Premises and Equipment, net



142,481


143,909



Bank owned life insurance




145,275


144,362



Goodwill 






175,498


175,323



Other intangible assets





3,027


3,033



Other assets






50,772


60,586




Total assets






$              7,890,359


7,775,033
















Liabilities and Shareholders' equity







Liabilities






Noninterest-bearing demand deposits



$                  944,937


891,248



Interest-bearing demand deposits



898,945


874,623



Money market deposit accounts



1,151,971


1,179,070



Savings deposits






1,257,446


1,209,287



Time deposits






1,428,768


1,478,314




Total deposits






5,682,067


5,632,542



Borrowed funds






943,842


888,109



Advances by borrowers for taxes and insurance


34,998


30,507



Accrued interest payable




1,336


936



Other liabilities






57,506


57,198



Junior subordinated debentures



103,094


103,094




Total liabilities






6,822,843


6,712,386
















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, 94,553,350 shares







and 94,721,453 shares issued and outstanding, respectively


946


947



Paid-in-capital






624,584


626,134



Retained earnings






484,774


481,577



Unallocated common stock of Employee Stock Ownership Plan


(21,565)


(21,641)



Accumulated other comprehensive loss



(21,223)


(24,370)




Total shareholders' equity



1,067,516


1,062,647




Total liabilities and shareholders' equity


$              7,890,359


7,775,033





















Equity to assets


13.53%


13.67%








Tangible common equity to assets


11.53%


11.64%








Book value per share


$                         11.29


11.22








Tangible book value per share


$                           9.40


9.34








Closing market price per share


$                         11.85


12.53








Full time equivalent employees


2,041


2,042








Number of banking offices


161


162
















 

Northwest Bancshares, Inc. and Subsidiaries



Consolidated Statements of Income



(Dollars in thousands, except per share amounts)




















Quarter ended








March 31,


December 31,








2015


2014


2014



Interest income:










Loans receivable


$                    70,711


69,322


71,182




Mortgage-backed securities


2,234


2,793


2,357




Taxable investment securities


1,045


1,080


1,032




Tax-free investment securities


1,348


1,655


1,467




Interest-earning deposits


139


200


164





Total interest income


75,477


75,050


76,202















Interest expense:










Deposits


5,766


6,490


6,106




Borrowed funds


8,133


7,714


7,876





Total interest expense


13,899


14,204


13,982

















Net interest income


61,578


60,846


62,220



Provision for loan losses


900


7,485


1,078





Net interest income after provision for loan losses


60,678


53,361


61,142















Noninterest income:










Gain on sale of investments


95


3,348


381




Service charges and fees


8,659


8,408


9,268




Trust and other financial services income


2,776


3,047


3,291




Insurance commission income


2,428


2,564


2,181




Loss on real estate owned, net


(1,046)


(135)


(30)




Income from bank owned life insurance


913


1,001


1,057




Mortgage banking income


240


249


269




Other operating income


1,963


1,175


1,188





Total noninterest income


16,028


19,657


17,605















Noninterest expense:










Compensation and employee benefits


27,895


27,972


31,405




Premises and occupancy costs


6,267


6,557


5,516




Office operations


3,680


3,757


3,677




Processing expenses


7,205


6,589


6,720




Marketing expenses


1,976


1,637


1,434




Federal deposit insurance premiums


1,347


1,297


1,316




Professional services


1,792


2,062


1,970




Amortization of intangible assets


268


331


331




Real estate owned expense


692


639


406




Acquisition expense


347


-


394




Other expense


2,242


2,322


2,043





Total noninterest expense


53,711


53,163


55,212

















Income before income taxes


22,995


19,855


23,535




Income tax expense


6,825


5,244


6,190


















Net income


$                    16,170


14,611


17,345















Basic earnings per share


$                          0.18


0.16


0.19















Diluted earnings per share


$                          0.18


0.16


0.19















Annualized return on average equity


6.17%


5.15%


6.42%



Annualized return on average assets


0.83%


0.75%


0.88%















Basic common shares outstanding


91,634,064


91,154,998


91,741,487



Diluted common shares outstanding


91,902,071


92,353,312


92,103,069



























 

Northwest Bancshares, Inc. and Subsidiaries



Asset quality



(Dollars in thousands)


















March 31,  2015


December 31, 
2014


March 31,  2014


December 31, 
2013















Nonaccrual loans current:












Residential mortgage loans


$                1,322


1,169


1,064


1,361




Home equity loans


1,910


1,527


1,771


835




Other consumer loans


114


88


136


98




Commercial real estate loans


18,465


23,703


26,564


17,866




Commercial loans


9,429


5,917


19,603


13,357



Total nonaccrual loans current


$             31,240


32,404


49,138


33,517















Nonaccrual loans delinquent 30 days to 59 days:












Residential mortgage loans


$                     951


1,545


741


427




Home equity loans


380


712


155


404




Other consumer loans


92


48


36


15




Commercial real estate loans


3,907


1,128


4,118


3,468




Commercial loans


144


9


5


7,650



Total nonaccrual loans delinquent 30 days to 59 days


$                5,474


3,442


5,055


11,964















Nonaccrual loans delinquent 60 days to 89 days:












Residential mortgage loans


$                1,892


784


1,914


864




Home equity loans


507


724


485


280




Other consumer loans


129


234


99


87




Commercial real estate loans


1,045


763


902


2,036




Commercial loans


107


131


95


716



Total nonaccrual loans delinquent 60 days to 89 days


$                3,680


2,636


3,495


3,983















Nonaccrual loans delinquent 90 days or more:












Residential mortgage loans


$             15,068


17,696


20,564


24,625




Home equity loans


5,646


6,606


8,420


8,344




Other consumer loans


2,045


2,450


1,818


2,057




Commercial real estate loans


8,233


10,215


16,098


18,433




Commercial loans


1,921


4,359


4,494


4,298



Total nonaccrual loans delinquent 90 days or more


$             32,913


41,326


51,394


57,757















Total nonaccrual loans


$             73,307


79,808


109,082


107,221






























March 31,


December 31,


March 31,


December 31,






2015


2014


2014


2013















Nonaccrual loans


$             73,307


79,808


109,082


107,221



Loans 90 days past maturity and still accruing


310


235


709


690



   Nonperforming loans


73,617


80,043


109,791


107,911



Real estate owned, net


15,346


16,759


16,692


18,203



   Nonperforming assets


$             88,963


96,802


126,483


126,114















Nonaccrual troubled debt restructuring *


$             19,843


24,459


34,268


28,889



Accruing troubled debt restructuring


40,802


37,329


40,243


50,277



Total troubled debt restructuring


$             60,645


61,788


74,511


79,166















Nonperforming loans to total loans


1.21%


1.34%


1.88%


1.86%















Nonperforming assets to total assets


1.13%


1.25%


1.59%


1.60%















Allowance for loan losses to total loans


1.11%


1.13%


1.30%


1.23%















Allowance for loan losses to nonperforming loans


91.42%


84.35%


69.44%


66.12%















* Amounts included in nonperforming loans above.

















 

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,



December 31,






2015

*


2014

*


2014

*


2013

*



Loans delinquent 30 days to 59 days:



















Residential mortgage loans

336

$      25,586

1.0%


377

$      27,443

1.1%


352

$      26,874

1.1%


374

$      27,486

1.1%




Home equity loans

128

3,737

0.4%


161

5,752

0.5%


172

5,449

0.5%


213

6,946

0.6%




Consumer loans

912

4,374

1.8%


1,193

5,572

2.3%


749

3,412

1.5%


1,010

4,515

2.0%




Commercial real estate loans

50

5,497

0.3%


56

4,956

0.3%


84

26,518

1.6%


73

8,449

0.5%




Commercial loans

36

1,480

0.4%


26

2,262

0.6%


41

1,375

0.3%


34

9,243

2.3%



Total loans delinquent 30 days to 59 days

1,462

$      40,674

0.7%


1,813

$      45,985

0.8%


1,398

$      63,628

1.1%


1,704

$      56,639

1.0%






















Loans delinquent 60 days to 89 days:



















Residential mortgage loans

40

$         3,397

0.1%


100

$         6,970

0.3%


46

$         3,674

0.1%


103

$         7,568

0.3%




Home equity loans

34

1,404

0.1%


49

1,672

0.2%


42

1,437

0.1%


67

2,243

0.2%




Consumer loans

352

1,515

0.6%


525

2,435

1.0%


330

1,289

0.6%


507

1,866

0.8%




Commercial real estate loans

21

2,351

0.1%


21

2,038

0.1%


33

2,570

0.2%


35

3,968

0.2%




Commercial loans

5

136

0.0%


4

209

0.1%


9

473

0.1%


16

1,555

0.4%



Total loans delinquent 60 days to 89 days

452

$         8,803

0.1%


699

$      13,324

0.2%


460

$         9,443

0.2%


728

$      17,200

0.3%






















Loans delinquent 90 days or more:



















Residential mortgage loans

193

$      15,068

0.6%


225

$      17,696

0.7%


236

$      20,564

0.8%


273

$      24,625

1.0%




Home equity loans

123

5,646

0.5%


139

6,606

0.6%


176

8,420

0.8%


171

8,344

0.8%




Consumer loans

440

2,045

0.9%


539

2,450

1.0%


391

1,818

0.8%


470

2,057

0.9%




Commercial real estate loans

84

8,233

0.4%


102

10,215

0.6%


116

16,098

1.0%


124

18,433

1.1%




Commercial loans

16

1,921

0.5%


25

4,359

1.2%


33

4,494

1.1%


31

4,298

1.1%



Total loans delinquent 90 days or more

856

$      32,913

0.5%


1,030

$      41,326

0.7%


952

$      51,394

0.9%


1,069

$      57,757

1.0%






















Total loans delinquent

2,770

$      82,390

1.4%


3,542

$   100,635

1.7%


2,810

$   124,465

2.1%


3,501

$   131,596

2.3%























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







































 

Northwest Bancshares, Inc. and Subsidiaries



Loans by credit quality indicators as of March 31, 2015



(Dollars in thousands)


































Recorded

















investment









Special








in loans







Pass


mention


Substandard


 Doubtful 


 Loss 


receivable



Personal Banking:

















Residential mortgage loans


$         2,531,595


-


10,851


-


1,424


2,543,870





Home equity loans


1,050,092


-


5,647


-


-


1,055,739





Other consumer loans


238,381


-


1,575


-


-


239,956




Total Personal Banking


3,820,068


-


18,073


-


1,424


3,839,565




















Business Banking:

















Commercial real estate loans


1,671,331


43,874


141,369


-


-


1,856,574





Commercial loans


305,632


22,651


31,243


9,199


-


368,725




Total Business Banking


1,976,963


66,525


172,612


9,199


-


2,225,299
























$         5,797,031


66,525


190,685


9,199


1,424


6,064,864





































Northwest Bancshares, Inc. and Subsidiaries



Loans by credit quality indicators as of December 31, 2014



(Dollars in thousands)


































Recorded

















investment









Special








in loans







Pass


mention


Substandard


 Doubtful 


 Loss 


receivable



Personal Banking:

















Residential mortgage loans


$         2,507,269


-


12,763


-


1,424


2,521,456





Home equity loans


1,059,525


-


6,606


-


-


1,066,131





Other consumer loans


240,947


-


1,797


-


-


242,744




Total Personal Banking


3,807,741


-


21,166


-


1,424


3,830,331




















Business Banking:

















Commercial real estate loans


1,618,269


36,908


145,502


505


-


1,801,184





Commercial loans


286,234


23,690


46,280


2,172


-


358,376




Total Business Banking


1,904,503


60,598


191,782


2,677


-


2,159,560
























$         5,712,244


60,598


212,948


2,677


1,424


5,989,891





































 

Northwest Bancshares, Inc. and Subsidiaries



Allowance for loan losses



(Dollars in thousands)


















Quarter ended


Year ended






March 31,


December 31,






2015


2014


2014


2013



Allowance for loan losses 












Beginning balance


$             67,518


71,348


71,348


73,219




Provision


900


7,485


20,314


18,519




Charge-offs residential mortgage


(335)


(459)


(2,181)


(2,501)




Charge-offs home equity


(342)


(372)


(1,783)


(2,239)




Charge-offs other consumer


(1,940)


(1,716)


(6,423)


(6,055)




Charge-offs commercial real estate


(1,113)


(932)


(8,422)


(10,042)




Charge-offs commercial


(724)


(770)


(11,936)


(5,007)




Recoveries


3,334


1,650


6,601


5,454




Ending balance


$             67,298


76,234


67,518


71,348



























Net charge-offs to average loans, annualized


0.07%


0.18%


0.41%


0.36%



























 

Northwest Bancshares, Inc. and Subsidiaries


Average balance sheet 


(Dollars in thousands)










The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and


average cost of liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of


assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages.












 Quarter ended March 31, 



2015

2014



 Average 

 Interest 

 Avg. 

 Average 

 Interest 

 Avg. 



 Balance 


 Yield/ 

 Balance 


 Yield/ 





 Cost (g) 



 Cost (g) 


Assets:








Interest-earning assets:








   Loans receivable (a) (b) (d)

$  6,019,250

71,182

4.80%

$  5,823,527

69,865

4.87%


   Mortgage-backed securities (c) 

506,778

2,234

1.76%

621,146

2,793

1.80%


   Investment securities (c) (d) 

486,078

3,119

2.57%

507,354

3,627

2.86%


   FHLB stock (h)

36,139

363

4.07%

43,715

275

2.55%


   Other interest-earning deposits

246,296

139

0.23%

351,615

200

0.23%










Total interest-earning assets 

7,294,541

77,037

4.28%

7,347,357

76,760

4.23%










Noninterest earning assets (e)

595,425



583,122












Total assets

$  7,889,966



$  7,930,479












Liabilities and shareholders' equity:








Interest-bearing liabilities:








   Savings deposits

$  1,231,745

813

0.27%

$  1,208,349

804

0.27%


   Interest-bearing demand deposits

878,230

131

0.06%

851,723

139

0.07%


   Money market deposit accounts

1,165,159

765

0.27%

1,173,957

782

0.27%


   Time deposits

1,452,476

4,057

1.13%

1,642,224

4,765

1.18%


   Borrowed funds (f)

960,812

6,975

2.94%

881,187

6,557

3.02%


   Junior subordinated debentures

103,094

1,158

4.49%

103,094

1,157

4.49%










Total interest-bearing liabilities

5,791,516

13,899

0.97%

5,860,534

14,204

0.98%










Noninterest-bearing demand deposits

914,025



815,117




Noninterest bearing liabilities

121,121



105,027












Total liabilities

6,826,662



6,780,678












Shareholders' equity

1,063,304



1,149,801












Total liabilities and shareholders' equity

$  7,889,966



$  7,930,479












Net interest income/ Interest rate spread


63,138

3.31%


62,556

3.25%










Net interest-earning assets/ Net interest margin

$  1,503,025


3.51%

$  1,486,823


3.45%










Ratio of interest-earning assets to








 interest-bearing liabilities

 1.26X 



 1.25X 












(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 and collateralized borrowings.






(g) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.76% and 4.83%, respectively, Investment securities - 1.97% 


      and 2.16%, respectively, Interest-earning assets - 4.21% and 4.15%, respectively. GAAP basis net interest rate spreads were 3.24% and 


      3.17%, respectively, and GAAP basis net interest margins were 3.44% and 3.37%, respectively.




(h) Excludes a $1.0 million special dividend paid in February 2015.






 

Northwest Bancshares, Inc. and Subsidiaries


Average balance sheet 


(Dollars in thousands)










The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and


average cost of liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of


assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages.












 Quarter ended 

 Quarter ended 



March 31, 2015

December 31, 2014



 Average 

 Interest 

 Avg. 

 Average 

 Interest 

 Avg. 



 Balance 


 Yield/ 

 Balance 


 Yield/ 





 Cost (g) 



 Cost (g) 


Assets:








Interest-earning assets:








   Loans receivable (a) (b) (d)

$  6,019,250

71,182

4.80%

$  5,961,303

71,669

4.77%


   Mortgage-backed securities (c) 

506,778

2,234

1.76%

536,990

2,357

1.76%


   Investment securities (c) (d) 

486,078

3,119

2.57%

495,554

3,289

2.65%


   FHLB stock (h)

36,139

363

4.07%

36,315

383

4.22%


   Other interest-earning deposits

246,296

139

0.23%

251,229

164

0.26%










Total interest-earning assets 

7,294,541

77,037

4.28%

7,281,391

77,862

4.28%










Noninterest earning assets (e)

595,425



546,946












Total assets

$  7,889,966



$  7,828,337












Liabilities and shareholders' equity:








Interest-bearing liabilities:








   Savings deposits

$  1,231,745

813

0.27%

$  1,209,117

828

0.27%


   Interest-bearing demand deposits

878,230

131

0.06%

884,542

147

0.07%


   Money market deposit accounts

1,165,159

765

0.27%

1,182,041

797

0.27%


   Time deposits

1,452,476

4,057

1.13%

1,506,526

4,334

1.14%


   Borrowed funds (f)

960,812

6,975

2.94%

894,509

6,694

2.97%


   Junior subordinated debentures

103,094

1,158

4.49%

103,094

1,182

4.49%










Total interest-bearing liabilities

5,791,516

13,899

0.97%

5,779,829

13,982

0.96%










Noninterest-bearing demand deposits

914,025



897,082




Noninterest bearing liabilities

121,121



79,850












Total liabilities

6,826,662



6,756,761












Shareholders' equity

1,063,304



1,071,576












Total liabilities and shareholders' equity

$  7,889,966



$  7,828,337












Net interest income/ Interest rate spread


63,138

3.31%


63,880

3.32%










Net interest-earning assets/ Net interest margin

$  1,503,025


3.51%

$  1,501,562


3.51%










Ratio of interest-earning assets to








 interest-bearing liabilities

 1.26X 



 1.26X 












(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 and collateralized borrowings.





(g) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.76% and 4.74%, respectively, Investment securities -1.97% 


      and 2.02%, respectively, Interest-earning assets - 4.21% and 4.21%, respectively. GAAP basis net interest rate spreads were 3.24% and 


      3.25%, respectively, and GAAP basis net interest margins were 3.44% and 3.44%, respectively.




(h) Excludes a $1.0 million special dividend paid in February 2015.






 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-first-quarter-2015-earnings-and-quarterly-dividend-300067925.html

SOURCE Northwest Savings Bank



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