Northwest Bancshares, Inc. Announces Earnings and Dividend Declaration
WARREN, Pa., Jan. 25 /PRNewswire-FirstCall/ -- Northwest Bancshares, Inc. (Nasdaq: NWBI, formerly NWSB) announced net income for the quarter ended December 31, 2009 of $1.0 million, or $0.01 per diluted share. This represents a decrease of $10.3 million over the same quarter last year when net income was $11.3 million, or $0.10 per diluted share. The annualized returns on average shareholders' equity and average assets for the current quarter were 0.46% and 0.05% compared to 7.27% and 0.65% for the same quarter last year. In making the announcement, the Company emphasized that current quarter earnings were significantly reduced by the establishment of a charitable foundation in the amount of $13.8 million, in conjunction with the Company's second-step stock offering.
During the quarter ended December 31, 2009, the Company converted from a partially-public mutual holding company to a fully-public stock holding company by completing a second-step stock offering and selling 68.8 million shares of common stock at $10 per share. As a part of the conversion, Northwest Bancshares, Inc. contributed $1.0 million of the offering proceeds and issued 1.3 million shares of common stock to a charitable foundation for the benefit of the communities in which it operates. The Company recognized a pre-tax expense of $13.8 million during the quarter as a result of this contribution.
In addition to the 68.8 million common shares sold in the offering, the Company exchanged 40.5 million common shares of Northwest Bancshares, Inc. for the 18.0 million common shares of Northwest Bancorp, Inc. that were owned by the public prior to the conversion. This represents an exchange ratio of 2.25 to 1. As a result, the Company had 110.6 million shares of common stock outstanding as of December 31, 2009.
Also contributing to the decrease in quarterly earnings was a significant increase in the provision for loan losses, which was $14.5 million for the quarter ended December 31, 2009 compared to $10.2 million in the same quarter a year ago. This increase in the provision was considered necessary given current economic conditions and the stress placed on the Company's borrowers. The Company noted, however, that actual loan charge-offs for the quarter were only $11.9 million.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share payable on February 18, 2010, to shareholders of record as of February 4, 2010. This represents the 61st consecutive quarter in which the Company has paid a cash dividend. Shareholders who owned Northwest shares prior to the second-step conversion now own 2.25 new shares for each share they owned prior to the conversion, and the total dividends they will receive from those shares this quarter will be slightly higher than they were last quarter.
In looking at the various components of quarterly income, the Company noted that net interest income decreased by $1.5 million, or 2.5%, for the quarter ended December 31, 2009 compared to the same quarter last year as a result of a decrease in net interest margin to 3.45% from 3.83%. The decrease in net interest margin resulted primarily from the Company carrying, on average, $458.4 million more in overnight funds than in the previous year's quarter earning an average rate of 0.19% compared to an average rate of 0.87% in the previous year. The increase in overnight funds was primarily attributable to the substantial increase in deposits experienced over the past several quarters as well as the additional capital received from the second-step common stock offering. These funds are temporarily being invested in overnight funds until they can be deployed to purchase investment securities and to fund loans.
Noninterest expense increased by $20.8 million, or 47.8%, to $64.2 million for the quarter ended December 31, 2009 from $43.5 million for the quarter ended December 31, 2008 primarily due to increases in compensation and employee benefit costs, FDIC insurance assessments and marketing expenses as well as the funding of the charitable foundation. Compensation and employee benefits increased by $2.2 million, or 9.5%, as the Company made an ESOP contribution of $3.1 million to benefit all Northwest employees in connection with the completion of the second-step conversion offering. Federal deposit insurance premiums increased by $1.1 million, or 110.6%, due to increases in both the Company's deposits and the rate charged by the FDIC. Marketing expenses increased by $2.2 million, or 114.4%, to $4.1 million for the quarter ended December 31, 2009 from $1.9 million for the quarter ended December 31, 2008 as a result of the initiation of a major campaign focused on the acquisition of checking account relationships.
Net income for the year ended December 31, 2009 of $32.7 million, or $0.30 per diluted share, represents a decrease of $15.5 million, or 32.2% compared to net income of $48.2 million, or $0.44 per diluted share, for the year ended December 31, 2008. This decrease resulted primarily from the Company recording a provision for loan losses which was $19.0 million, or 83.1%, higher than the previous year. The increase in the provision was considered necessary given the current economic environment. Also contributing to the decrease in income was the previously mentioned $13.8 million charitable contribution and a $3.3 million special assessment by the FDIC. Partially offsetting these reductions in net income was a $9.3 million, or 4.2%, increase in net interest income and a $14.6 million, or 37.6%, increase in noninterest income. Included in the increase in noninterest income was a $3.5 million gain recognized as part of the acquisition of Keystone State Savings Bank, which occurred October 23, 2009. The annualized returns on average shareholders' equity and average assets were 4.71% and 0.46%, respectively, for the current year compared to 7.75% and 0.70%, respectively, for the prior year.
Founded in 1896 and headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc., through its subsidiary Northwest Savings Bank, currently operates 171 community banking locations in Pennsylvania, New York, Ohio, Maryland and Florida. Northwest Savings Bank is a full-service financial institution offering a complete line of retail and business banking products as well as investment management and trust services. The Company also operates 51 consumer finance offices in Pennsylvania through its subsidiary, Northwest Consumer Discount Company. Northwest Bancshares, Inc.'s stock is listed on the NASDAQ Global Select Market. Additional information regarding Northwest Bancshares, Inc. can be accessed on-line at www.northwestsavingsbank.com.
Forward-Looking Statements - This press release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans that could result from an economic downturn; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses; and (7) increased risk associated with an increase in commercial real-estate and business loans and non-performing loans. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.
Northwest Bancshares, Inc. and Subsidiaries |
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Consolidated Statements of Financial Condition |
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(Dollars in thousands, except per share amounts) |
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December 31, |
December 31, |
||||||||||||
Assets |
2009 |
2008 |
|||||||||||
Cash and cash equivalents |
$ 69,265 |
55,815 |
|||||||||||
Interest-earning deposits in other financial institutions |
1,037,893 |
16,795 |
|||||||||||
Federal funds sold and other short-term investments |
632 |
7,312 |
|||||||||||
Marketable securities available-for-sale (amortized cost of $1,059,177 and $1,144,435) |
1,067,089 |
1,139,170 |
|||||||||||
Total cash, interest-earning deposits and marketable securities |
2,174,879 |
1,219,092 |
|||||||||||
Loans held for sale |
1,164 |
18,738 |
|||||||||||
Mortgage loans - one- to four- family |
2,334,538 |
2,447,506 |
|||||||||||
Home equity loans |
1,067,584 |
1,013,876 |
|||||||||||
Consumer loans |
286,292 |
289,602 |
|||||||||||
Commercial real estate loans |
1,238,217 |
1,071,182 |
|||||||||||
Commercial business loans |
371,670 |
355,917 |
|||||||||||
Total loans receivable |
5,299,465 |
5,196,821 |
|||||||||||
Allowance for loan losses |
(70,403) |
(54,929) |
|||||||||||
Loans receivable, net |
5,229,062 |
5,141,892 |
|||||||||||
Federal Home Loan Bank stock, at cost |
63,242 |
63,143 |
|||||||||||
Accrued interest receivable |
25,780 |
27,252 |
|||||||||||
Real estate owned, net |
20,257 |
16,844 |
|||||||||||
Premises and Equipment, net |
124,316 |
115,842 |
|||||||||||
Bank owned life insurance |
128,270 |
123,479 |
|||||||||||
Goodwill |
171,363 |
171,363 |
|||||||||||
Other intangible assets |
4,678 |
7,395 |
|||||||||||
Other assets |
83,451 |
43,939 |
|||||||||||
Total assets |
$ 8,025,298 |
6,930,241 |
|||||||||||
Liabilities and Shareholders' equity |
|||||||||||||
Liabilities: |
|||||||||||||
Noninterest-bearing demand deposits |
$ 487,036 |
394,011 |
|||||||||||
Interest-bearing demand deposits |
768,110 |
706,120 |
|||||||||||
Savings deposits |
1,744,537 |
1,480,620 |
|||||||||||
Time deposits |
2,624,741 |
2,457,460 |
|||||||||||
Total deposits |
5,624,424 |
5,038,211 |
|||||||||||
Borrowed funds |
897,326 |
1,067,945 |
|||||||||||
Advances by borrowers for taxes and insurance |
22,034 |
26,190 |
|||||||||||
Accrued interest payable |
4,493 |
5,194 |
|||||||||||
Other liabilities |
57,412 |
70,663 |
|||||||||||
Junior subordinated debentures |
103,094 |
108,254 |
|||||||||||
Total liabilities |
6,708,783 |
6,316,457 |
|||||||||||
Shareholders' equity: |
|||||||||||||
Preferred stock, $0.01 par value and $0.10 par value, respectively: 50,000,000 shares authorized, no shares issued |
- |
- |
|||||||||||
Common stock, $0.01 par value: 500,000,000 shares authorized, 110,641,858 shares issued |
1,106 |
- |
|||||||||||
Common stock, $0.10 par value: 500,000,000 shares authorized, 51,244,974 shares issued |
- |
5,124 |
|||||||||||
Paid-in-capital |
828,195 |
218,332 |
|||||||||||
Retained earnings |
508,842 |
490,326 |
|||||||||||
Unallocated common stock of Employee Stock Ownership Plan |
(11,651) |
- |
|||||||||||
Accumulated other comprehensive loss |
(9,977) |
(30,575) |
|||||||||||
Treasury stock of -0- and 2,742,800 shares, at cost |
- |
(69,423) |
|||||||||||
Total shareholders' equity |
1,316,515 |
613,784 |
|||||||||||
Total liabilities and shareholders' equity |
$ 8,025,298 |
6,930,241 |
|||||||||||
Equity to assets |
16.40% |
8.86% |
|||||||||||
Tangible common equity to assets |
14.53% |
6.36% |
|||||||||||
Book value per share* |
$11.90 |
$5.62 * |
|||||||||||
Tangible book value per share* |
$10.31 |
$3.93 * |
|||||||||||
Closing market price per share* |
$11.27 |
$9.50 * |
|||||||||||
Full time equivalent employees |
1,867 |
1,860 |
|||||||||||
Number of banking offices |
171 |
167 |
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* - Adjusted for 2.25 to 1 exchange rate. |
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Northwest Bancshares, Inc. and Subsidiaries Consolidated Statements of Income (Dollars in thousands, except per share amounts) |
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Three months ended |
Year ended |
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December 31, |
December 31, |
||||||||||
2009 |
2008 |
2009 |
2008 |
||||||||
Interest income: |
|||||||||||
Loans receivable |
$ 80,322 |
83,161 |
320,121 |
327,128 |
|||||||
Mortgage-backed securities |
6,405 |
8,830 |
27,263 |
34,694 |
|||||||
Taxable investment securities |
1,246 |
2,102 |
5,384 |
11,828 |
|||||||
Tax-free investment securities |
2,678 |
3,032 |
11,054 |
12,253 |
|||||||
Interest-earning deposits |
226 |
42 |
641 |
2,756 |
|||||||
Total interest income |
90,877 |
97,167 |
364,463 |
388,659 |
|||||||
Interest expense: |
|||||||||||
Deposits |
22,839 |
27,259 |
95,394 |
137,061 |
|||||||
Borrowed funds |
9,994 |
10,405 |
40,412 |
32,232 |
|||||||
Total interest expense |
32,833 |
37,664 |
135,806 |
169,293 |
|||||||
Net interest income |
58,044 |
59,503 |
228,657 |
219,366 |
|||||||
Provision for loan losses |
14,500 |
10,212 |
41,847 |
22,851 |
|||||||
Net interest income after provision |
|||||||||||
for loan losses |
43,544 |
49,291 |
186,810 |
196,515 |
|||||||
Noninterest income: |
|||||||||||
Impairment losses on securities |
(5,920) |
(3,653) |
(12,408) |
(16,004) |
|||||||
Noncredit related losses on securities not expected |
|||||||||||
to be sold (recognized in other comprehensive income) |
5,004 |
- |
6,311 |
- |
|||||||
Net impairment losses |
(916) |
(3,653) |
(6,097) |
(16,004) |
|||||||
Gain on sale of investments, net |
26 |
2,199 |
403 |
6,037 |
|||||||
Service charges and fees |
9,343 |
8,337 |
34,811 |
32,432 |
|||||||
Trust and other financial services income |
1,958 |
1,491 |
6,307 |
6,718 |
|||||||
Insurance commission income |
619 |
619 |
2,658 |
2,376 |
|||||||
Gain/ (loss) on sale of real estate owned, net |
(120) |
11 |
(4,054) |
(428) |
|||||||
Income from bank owned life insurance |
1,195 |
1,213 |
4,791 |
4,797 |
|||||||
Mortgage banking income |
702 |
12 |
5,594 |
665 |
|||||||
Non-cash recovery/ (impairment) of MSRs |
290 |
(2,330) |
1,840 |
(2,165) |
|||||||
Gain on bargain purchase |
3,503 |
- |
3,503 |
- |
|||||||
Other operating income |
695 |
1,366 |
3,581 |
4,324 |
|||||||
Total noninterest income |
17,295 |
9,265 |
53,337 |
38,752 |
|||||||
Noninterest expense: |
|||||||||||
Compensation and employee benefits |
25,637 |
23,408 |
95,594 |
91,129 |
|||||||
Premises and occupancy costs |
5,442 |
5,400 |
21,963 |
21,924 |
|||||||
Office operations |
3,372 |
3,185 |
12,947 |
13,237 |
|||||||
Processing expenses |
5,829 |
4,861 |
21,312 |
18,652 |
|||||||
Marketing expenses |
4,106 |
1,915 |
9,152 |
5,500 |
|||||||
Federal deposit insurance premiums |
2,148 |
1,020 |
8,309 |
3,884 |
|||||||
FDIC Special Assessment |
- |
- |
3,288 |
- |
|||||||
Professional services |
691 |
668 |
2,590 |
2,582 |
|||||||
Amortization of intangible assets |
649 |
848 |
3,020 |
4,387 |
|||||||
Loss on early extinguishment of debt |
- |
- |
- |
705 |
|||||||
Contribution to charitable foundation |
13,822 |
- |
13,822 |
- |
|||||||
Other expense |
2,541 |
2,169 |
8,497 |
8,128 |
|||||||
Total noninterest expense |
64,237 |
43,474 |
200,494 |
170,128 |
|||||||
(Loss)/ income before income taxes |
(3,398) |
15,082 |
39,653 |
65,139 |
|||||||
Income tax (benefit)/ expense |
(4,404) |
3,798 |
7,000 |
16,968 |
|||||||
Net income |
$ 1,006 |
11,284 |
32,653 |
48,171 |
|||||||
Basic earnings per share |
0.01 |
$ 0.10 |
* |
$ 0.30 |
$ 0.44 |
* |
|||||
Diluted earnings per share |
0.01 |
$ 0.10 |
* |
$ 0.30 |
$ 0.44 |
* |
|||||
Annualized return on average equity |
0.46% |
7.27% |
4.71% |
7.75% |
|||||||
Annualized return on average assets |
0.05% |
0.65% |
0.46% |
0.70% |
|||||||
Basic common shares outstanding |
109,286,606 |
108,873,585 |
* |
109,078,129 |
108,815,648 |
* |
|||||
Diluted common shares outstanding |
109,820,238 |
109,346,564 |
* |
109,459,875 |
109,346,454 |
* |
|||||
* - Adjusted for 2.25 to 1 exchange ratio. |
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Northwest Bancshares, Inc. and Subsidiaries |
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Supplementary data |
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(Dollars in thousands) |
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Three months ended |
Year ended |
||||||||
December 31, |
December 31, |
||||||||
2009 |
2008 |
2009 |
2008 |
||||||
Allowance for loan losses |
|||||||||
Beginning balance |
$ 67,775 |
47,924 |
54,929 |
41,784 |
|||||
Provision |
14,500 |
10,212 |
41,847 |
22,851 |
|||||
Charge-offs mortgage |
(137) |
(332) |
(1,437) |
(1,513) |
|||||
Charge-offs consumer |
(2,530) |
(1,739) |
(7,045) |
(6,607) |
|||||
Charge-offs commercial |
(9,633) |
(1,425) |
(19,334) |
(3,490) |
|||||
Recoveries |
428 |
289 |
1,443 |
1,904 |
|||||
Ending balance |
$ 70,403 |
54,929 |
70,403 |
54,929 |
|||||
Net charge-offs to average loans, annualized |
0.91% |
0.25% |
0.51% |
0.19% |
|||||
December 31, |
|||||||||
2009 |
2008 |
2007 |
2006 |
||||||
Nonperforming loans |
$ 124,626 |
99,203 |
49,610 |
40,525 |
|||||
Real estate owned, net |
20,257 |
16,844 |
8,667 |
6,653 |
|||||
Nonperforming assets |
$ 144,883 |
116,047 |
58,277 |
47,178 |
|||||
Nonperforming loans to total loans |
2.35% |
1.91% |
1.03% |
0.91% |
|||||
Nonperforming assets to total assets |
1.81% |
1.67% |
0.87% |
0.72% |
|||||
Allowance for loan losses to total loans |
1.33% |
1.06% |
0.86% |
0.85% |
|||||
Allowance for loan losses to nonperforming loans |
56.49% |
55.37% |
84.22% |
92.92% |
|||||
Northwest Bancshares, Inc. and Subsidiaries |
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Supplementary data |
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(Dollars in thousands) |
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Loans past due schedule |
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(Number of loans and dollar amount of loans) |
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December 31, |
|||||||||||||
2009 |
* |
2008 |
* |
2007 |
* |
||||||||
Loans past due 30 days to 59 days: |
|||||||||||||
One- to four- family residential loans |
350 |
$ 27,998 |
1.2% |
392 |
$ 32,988 |
1.3% |
361 |
$ 27,270 |
1.1% |
||||
Consumer loans |
1,100 |
11,226 |
0.8% |
1,157 |
11,295 |
0.9% |
1,331 |
10,550 |
0.8% |
||||
Multifamily and commercial RE loans |
85 |
16,152 |
1.3% |
99 |
18,901 |
1.8% |
88 |
11,331 |
1.3% |
||||
Commercial business loans |
48 |
3,293 |
0.9% |
86 |
7,700 |
2.2% |
70 |
9,947 |
3.0% |
||||
Total loans past due 30 days to 59 days |
1,583 |
$ 58,669 |
1.1% |
1,734 |
$ 70,884 |
1.4% |
1,850 |
$ 59,098 |
1.2% |
||||
Loans past due 60 days to 89 days: |
|||||||||||||
One- to four- family residential loans |
85 |
$ 6,772 |
0.3% |
101 |
$ 7,599 |
0.3% |
99 |
$ 6,077 |
0.3% |
||||
Consumer loans |
392 |
3,029 |
0.2% |
379 |
2,836 |
0.2% |
437 |
2,676 |
0.2% |
||||
Multifamily and commercial RE loans |
35 |
5,811 |
0.5% |
54 |
8,432 |
0.8% |
41 |
4,984 |
0.6% |
||||
Commercial business loans |
26 |
2,474 |
0.7% |
45 |
3,801 |
1.1% |
34 |
2,550 |
0.8% |
||||
Total loans past due 60 days to 89 days |
538 |
$ 18,086 |
0.3% |
579 |
$ 22,668 |
0.4% |
611 |
$ 16,287 |
0.3% |
||||
Loans past due 90 days or more: |
|||||||||||||
One- to four- family residential loans |
279 |
$ 29,373 |
1.3% |
223 |
$ 20,435 |
0.8% |
193 |
$ 12,542 |
0.5% |
||||
Consumer loans |
727 |
12,544 |
0.9% |
687 |
9,756 |
0.7% |
744 |
7,582 |
0.6% |
||||
Multifamily and commercial RE loans |
199 |
49,594 |
4.0% |
155 |
43,828 |
4.1% |
105 |
24,323 |
2.9% |
||||
Commercial business loans |
124 |
18,269 |
4.9% |
114 |
25,184 |
7.1% |
84 |
5,163 |
1.6% |
||||
Total loans past due 90 days or more |
1,329 |
$ 109,780 |
2.1% |
1,179 |
$ 99,203 |
1.9% |
1,126 |
$ 49,610 |
1.0% |
||||
* - Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding. |
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Northwest Bancshares, Inc. and Subsidiaries |
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Analysis of loan portfolio by geographic location as of December 31, 2009: |
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(Dollars in thousands) |
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Loans outstanding: |
||||||||||||
Mortgage |
(1) |
Consumer |
(2) |
Commercial |
(3) |
Total |
(4) |
|||||
Pennsylvania |
$ 1,913,127 |
81.9% |
1,189,667 |
87.9% |
1,057,995 |
65.7% |
4,160,789 |
78.4% |
||||
New York |
136,729 |
5.9% |
98,870 |
7.3% |
302,145 |
18.8% |
537,744 |
10.1% |
||||
Ohio |
24,973 |
1.1% |
17,048 |
1.3% |
43,338 |
2.7% |
85,359 |
1.6% |
||||
Maryland |
232,146 |
9.9% |
39,227 |
2.9% |
157,262 |
9.8% |
428,635 |
8.1% |
||||
Florida |
28,727 |
1.2% |
9,064 |
0.7% |
49,147 |
3.1% |
86,938 |
1.6% |
||||
Total |
$ 2,335,702 |
100.0% |
1,353,876 |
100.0% |
1,609,887 |
100.0% |
5,299,465 |
100.0% |
||||
(1) - Percentage of total mortgage loans |
||||||||||||
(2) - Percentage of total consumer loans |
||||||||||||
(3) - Percentage of total commercial loans |
||||||||||||
(4) - Percentage of total loans |
||||||||||||
Loans 90 or more past due: |
|||||||||||
Mortgage |
(5) |
Consumer |
(6) |
Commercial |
(7) |
Total |
(8) |
||||
Pennsylvania |
$ 21,683 |
1.1% |
9,571 |
0.8% |
46,649 |
4.4% |
77,903 |
1.9% |
|||
New York |
386 |
0.3% |
230 |
0.2% |
1,040 |
0.3% |
1,656 |
0.3% |
|||
Ohio |
196 |
0.8% |
78 |
0.5% |
496 |
1.1% |
770 |
0.9% |
|||
Maryland |
702 |
0.3% |
1,000 |
2.5% |
11,942 |
7.6% |
13,644 |
3.2% |
|||
Florida |
6,406 |
22.3% |
1,665 |
18.4% |
7,736 |
15.7% |
15,807 |
18.2% |
|||
Total |
$ 29,373 |
1.3% |
12,544 |
0.9% |
67,863 |
4.2% |
109,780 |
2.1% |
|||
(5) - Percentage of mortgage loans in that geographic area |
|||||||||||
(6) - Percentage of consumer loans in that geographic area |
|||||||||||
(7) - Percentage of commercial loans in that geographic area |
|||||||||||
(8) - Percentage of total loans in that geographic area |
|||||||||||
Northwest Bancshares, Inc. and Subsidiaries |
|||||||||
Supplementary data |
|||||||||
(Dollars in thousands) |
|||||||||
Marketable securities available-for-sale as of December 31, 2009: |
|||||||||
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 |
$ 76 |
- |
(1) |
75 |
|||||
Debt issued by government sponsored enterprises: |
|||||||||
Due in one year - five years |
1,977 |
153 |
- |
2,130 |
|||||
Due in five years - ten years |
21,912 |
524 |
- |
22,436 |
|||||
Due after ten years |
52,667 |
1,128 |
(498) |
53,297 |
|||||
Equity securities |
1,054 |
191 |
(118) |
1,127 |
|||||
Municipal securities: |
|||||||||
Due in one year - five years |
3,146 |
68 |
- |
3,214 |
|||||
Due in five years - ten years |
41,170 |
1,163 |
- |
42,333 |
|||||
Due after ten years |
190,812 |
2,774 |
(1,677) |
191,909 |
|||||
Corporate trust preferred securities: |
|||||||||
Due in one year - five years |
500 |
- |
- |
500 |
|||||
Due after ten years |
26,882 |
168 |
(10,549) |
16,501 |
|||||
Mortgage-backed securities: |
|||||||||
Fixed rate pass-through |
145,363 |
6,440 |
(47) |
151,756 |
|||||
Variable rate pass-through |
231,232 |
7,894 |
(85) |
239,041 |
|||||
Fixed rate non-agency CMO |
18,698 |
48 |
(1,567) |
17,179 |
|||||
Fixed rate agency CMO |
19,994 |
982 |
- |
20,976 |
|||||
Variable rate non-agency CMO |
9,296 |
- |
(1,391) |
7,905 |
|||||
Variable rate agency CMO |
294,398 |
2,642 |
(330) |
296,710 |
|||||
Total mortgage-backed securities |
718,981 |
18,006 |
(3,420) |
733,567 |
|||||
Total marketable securities available-for-sale |
$ 1,059,177 |
24,175 |
(16,263) |
1,067,089 |
|||||
Issuers of mortgage-backed securities as of December 31, 2009: |
|||||||||
Fannie Mae |
$ 250,145 |
7,202 |
(366) |
256,981 |
|||||
Ginnie Mae |
124,455 |
1,726 |
(17) |
126,164 |
|||||
Freddie Mac |
315,606 |
9,029 |
(73) |
324,562 |
|||||
Non-agency |
28,775 |
49 |
(2,964) |
25,860 |
|||||
Total |
$ 718,981 |
18,006 |
(3,420) |
733,567 |
|||||
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. |
|||||||
Three months ended December 31, |
|||||||
2009 |
2008 |
||||||
Average |
Interest |
Avg. |
Average |
Interest |
Avg. |
||
Balance |
Yield/ |
Balance |
Yield/ |
||||
Cost |
Cost |
||||||
ASSETS: |
|||||||
Interest-earning assets: |
|||||||
Loans receivable (a) (b) (d) |
$ 5,242,823 |
80,160 |
6.13% |
5,161,835 |
83,554 |
6.42% |
|
Mortgage-backed securities (c) |
744,755 |
6,405 |
3.44% |
761,155 |
8,830 |
4.64% |
|
Investment securities (c) (d) (e) |
349,309 |
5,365 |
6.14% |
421,417 |
6,452 |
6.12% |
|
FHLB stock |
63,216 |
- |
0.00% |
60,969 |
314 |
2.06% |
|
Other interest-earning deposits |
477,269 |
226 |
0.19% |
18,846 |
42 |
0.87% |
|
Total interest-earning assets |
6,877,372 |
92,156 |
5.37% |
6,424,222 |
99,192 |
6.13% |
|
Noninterest earning assets (f) |
669,511 |
496,051 |
|||||
TOTAL ASSETS |
$ 7,546,883 |
6,920,273 |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY: |
|||||||
Interest-bearing liabilities: |
|||||||
Savings accounts |
$ 934,213 |
1,852 |
0.79% |
779,238 |
2,272 |
1.16% |
|
Interest-bearing demand accounts |
755,158 |
434 |
0.23% |
722,807 |
1,305 |
0.72% |
|
Money market accounts |
805,347 |
1,768 |
0.87% |
708,655 |
2,976 |
1.67% |
|
Certificate accounts |
2,604,329 |
18,785 |
2.86% |
2,452,075 |
20,706 |
3.35% |
|
Borrowed funds (g) |
899,711 |
8,558 |
3.77% |
1,009,931 |
9,013 |
3.54% |
|
Junior subordinated debentures |
103,094 |
1,436 |
5.45% |
108,260 |
1,392 |
5.03% |
|
Total interest-bearing liabilities |
6,101,852 |
32,833 |
2.13% |
5,780,966 |
37,664 |
2.58% |
|
Noninterest bearing liabilities |
569,269 |
518,031 |
|||||
Total liabilities |
6,671,121 |
6,298,997 |
|||||
Shareholders' equity |
875,762 |
621,276 |
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 7,546,883 |
6,920,273 |
|||||
Net interest income/ Interest rate spread |
59,323 |
3.24% |
61,528 |
3.55% |
|||
Net interest-earning assets/ Net interest margin |
$ 775,520 |
3.45% |
643,256 |
3.83% |
|||
Ratio of interest-earning assets to |
|||||||
interest-bearing liabilities |
1.13X |
1.11X |
|||||
(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 Fannie Mae and Freddie Mac stock. |
|||||||
(f) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
|||||||
(g) Average balances include FHLB borrowings, securities sold under agreements to repurchase and other borrowings. |
|||||||
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. |
|||||||
Year ended December 31, |
|||||||
2009 |
2008 |
||||||
Average |
Interest |
Avg. |
Average |
Interest |
Avg. |
||
Balance |
Yield/ |
Balance |
Yield/ |
||||
Cost |
Cost |
||||||
ASSETS: |
|||||||
Interest-earning assets: |
|||||||
Loans receivable (a) (b) (d) |
$ 5,199,829 |
321,764 |
6.17% |
5,016,694 |
328,687 |
6.50% |
|
Mortgage-backed securities (c) |
720,683 |
27,263 |
3.78% |
732,281 |
34,694 |
4.74% |
|
Investment securities (c) (d) (e) |
360,620 |
22,390 |
6.21% |
478,933 |
29,250 |
6.11% |
|
FHLB stock |
63,162 |
- |
0.00% |
48,167 |
1,428 |
2.96% |
|
Other interest-earning deposits |
297,228 |
641 |
0.21% |
104,895 |
2,756 |
2.59% |
|
Total interest-earning assets |
6,641,522 |
372,058 |
5.59% |
6,380,970 |
396,815 |
6.18% |
|
Noninterest earning assets (f) |
523,038 |
488,579 |
|||||
TOTAL ASSETS |
$ 7,164,560 |
6,869,549 |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY: |
|||||||
Interest-bearing liabilities: |
|||||||
Savings accounts |
$ 850,707 |
6,501 |
0.76% |
778,341 |
9,159 |
1.18% |
|
Interest-bearing demand accounts |
739,102 |
2,536 |
0.34% |
732,097 |
6,434 |
0.88% |
|
Money market accounts |
752,166 |
8,471 |
1.13% |
720,713 |
14,726 |
2.04% |
|
Certificate accounts |
2,546,867 |
77,886 |
3.06% |
2,716,815 |
106,742 |
3.93% |
|
Borrowed funds (g) |
936,571 |
34,578 |
3.69% |
718,657 |
26,893 |
3.74% |
|
Junior subordinated debentures |
105,672 |
5,834 |
5.45% |
108,287 |
5,339 |
4.86% |
|
Total interest-bearing liabilities |
5,931,085 |
135,806 |
2.29% |
5,774,910 |
169,293 |
2.93% |
|
Noninterest bearing liabilities |
540,536 |
473,410 |
|||||
Total liabilities |
6,471,621 |
6,248,320 |
|||||
Shareholders' equity |
692,939 |
621,229 |
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 7,164,560 |
6,869,549 |
|||||
Net interest income/ Interest rate spread |
236,252 |
3.30% |
227,522 |
3.25% |
|||
Net interest-earning assets/ Net interest margin |
$ 710,437 |
3.56% |
606,060 |
3.57% |
|||
Ratio of interest-earning assets to |
|||||||
interest-bearing liabilities |
1.12X |
1.10X |
|||||
(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 Fannie Mae and Freddie Mac stock. |
|||||||
(f) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
|||||||
(g) Average balances include FHLB borrowings, securities sold under agreements to repurchase and other borrowings. |
|||||||
SOURCE Northwest Bancshares, Inc.
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