EX-99.1 2 l39460exv99w1.htm EX-99.1 exv99w1
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 First Quarter 2010
Earnings and Dividend Declaration
Warren, Pennsylvania — April 21, 2010
     Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2010 of $13.2 million, or $0.12 per diluted share. This represents an increase of $851,000 over the same quarter last year when net income was $12.3 million, or $0.11 per diluted share, and an increase of $12.2 million over the quarter ended December 31, 2009 when net income was $1.0 million, or $0.01 per diluted share. The annualized returns on average shareholders’ equity and average assets for the current quarter were 4.05% and 0.65% compared to 7.93% and 0.70% for the same quarter last year and 0.46% and 0.05% for the quarter ended December 31, 2009.
     The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share payable on May 13, 2010, to shareholders of record as of May 1, 2010. This represents the 62nd consecutive quarter in which the Company has paid a cash dividend.
     In making this announcement, William J. Wagner, President and CEO, noted, “We are pleased to report solid core earnings in our first period as a fully-public company following the completion of our second-step conversion on December 18, 2009. The proceeds we received from the offering assisted in improving net interest income in the current quarter while also enhancing the strength of our capital position during a time of continued economic uncertainty. In our ongoing efforts to enhance profitability, management is focused on using the offering proceeds to significantly increase our loan portfolio while using the new capital to grow all areas of our franchise both organically and through acquisition.”
     Net interest income increased by $2.2 million, or 3.9%, to $60.0 million for the quarter ended March 31, 2010, from $57.8 million for the quarter ended March 31, 2009. The increase in net interest income was primarily a result of decreases in interest expense on both deposits and borrowings, partially offset by a decrease in interest income on investment securities. Interest income on loans receivable remained unchanged from the same quarter last year. Interest expense on deposits decreased by

 

 

$3.2 million, or 13.1%, to $21.4 million as a result of a change in the mix of deposits as lower-cost transaction accounts grew more rapidly than other types of deposits.
     The provision for loan losses increased by $3.0 million, or 52.2%, to $8.8 million for the quarter ended March 31, 2010, from $5.8 million for the quarter ended March 31, 2009. This increase is primarily due to weakness in general economic conditions and its impact on loan charge-offs. Net charge-offs for the quarter ended March 31, 2010 were $4.4 million, or 0.33% of average loans on an annualized basis, compared to $3.2 million, or 0.25% of average loans on an annualized basis, for the quarter ended March 31, 2009. The Company also emphasized that its level of provision for loan losses in excess of net charge-offs has resulted in an increase in the allowance for loan losses which are reserves established to absorb losses inherent in the loan portfolio. As of March 31, 2010, the allowance for loan losses was $74.8 million, or 1.38% of total loans, compared to $57.5 million, or 1.11% of total loans, as of March 31, 2009. Nonperforming loans were $117.2 million as of March 31, 2010, compared to $105.5 million as of March 31, 2009.
     Noninterest income increased by $6.3 million, or 64.5%, to $15.9 million for the quarter ended March 31, 2010, from $9.6 million for the quarter ended March 31, 2009 with most of this change attributable to two events. In the current year, the Company sold approximately $55.0 million of Fannie Mae zero coupon bonds, realizing a gain of $2.1 million and in the prior year, the Company wrote down a foreclosed property in the amount of $3.9 million. Almost all other major components of noninterest income increased from the previous year. Core service charges and fees increased by $1.0 million, or 13.1%, to $8.9 million. Trust and other financial services income increased by $485,000, or 36.0%, to $1.8 million. Insurance commission income of $1.1 million more than doubled from the prior year due to the January 2, 2010 acquisition of Veracity Benefits Design, Inc., an employee benefits firm specializing in services to employer and employee groups, offering group medical, dental, life, accidental death and dismemberment, long term disability, travel accident, and vision insurance plans.
     Noninterest expense increased by $4.3 million, or 9.8%, to $48.6 million for the quarter ended March 31, 2010, from $44.3 million in the prior year. This increase is primarily a result of increases in compensation and employee benefits, marketing expenses and other expenses. Compensation and employee benefits expenses increased by $2.0 million, or 8.1%, to $25.9 million. This increase is primarily attributable to an increase in health insurance expense and the expense of the employee stock ownership plan. In conjunction with the second-step common stock offering completed during December 2009, the Company purchased approximately $28.9 million of common stock for its employee stock ownership plan, which is anticipated to be distributed to employees over 20 years. Marketing expenses increased by $514,000, or 55.3%, to $1.4 million as the Company continued a major campaign focused on the acquisition of checking account relationships.

 

 

     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
Consolidated Statements of Financial Condition
(Dollars in thousands, except per share amounts)
                 
    (Unaudited)        
    March 31,     December 31,  
    2010     2009  
Assets
                
Cash and cash equivalents
   $ 66,351       69,265  
Interest-earning deposits in other financial institutions
     868,361       1,037,893  
Federal funds sold and other short-term investments
     683       632  
Marketable securities available-for-sale (amortized cost of $901,441 and $1,059,177)
     911,231       1,067,089  
Marketable securities held-to-maturity (fair value of $275,114 and $0)
     275,956       —  
 
            
Total cash, interest-earning deposits and marketable securities
     2,122,582       2,174,879  
 
                
Loans held for sale
     181       1,164  
Mortgage loans — one- to four- family
     2,392,899       2,334,538  
Home equity loans and lines of credit
     1,073,925       1,067,584  
Consumer loans
     282,631       286,292  
Commercial real estate loans
     1,288,584       1,238,217  
Commercial business loans
     385,455       371,670  
 
            
Total loans receivable
     5,423,675       5,299,465  
Allowance for loan losses
     (74,836 )     (70,403 )
 
            
Loans receivable, net
     5,348,839       5,229,062  
 
                
Federal Home Loan Bank stock, at cost
     63,242       63,242  
Accrued interest receivable
     27,209       25,780  
Real estate owned, net
     22,182       20,257  
Premises and Equipment, net
     123,274       124,316  
Bank owned life insurance
     129,436       128,270  
Goodwill
     171,682       171,363  
Other intangible assets
     5,900       4,678  
Other assets
     70,284       83,451  
 
            
Total assets
   $ 8,084,630       8,025,298  
 
            
 
                
Liabilities and Shareholders’ equity
                
Liabilities
                
Noninterest-bearing demand deposits
   $ 514,487       487,036  
Interest-bearing demand deposits
     773,613       768,110  
Savings deposits
     1,881,216       1,744,537  
Time deposits
     2,524,132       2,624,741  
 
            
Total deposits
     5,693,448       5,624,424  
Borrowed funds
     903,905       897,326  
Advances by borrowers for taxes and insurance
     25,033       22,034  
Accrued interest payable
     4,559       4,493  
Other liabilities
     52,511       57,412  
Junior subordinated debentures
     103,094       103,094  
 
            
Total liabilities
     6,782,550       6,708,783  
 
                
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, 110,680,962 shares and 110,641,858 shares issued, respectively
     1,107       1,106  
Paid-in-capital
     828,623       828,195  
Retained earnings
     510,932       508,842  
Unallocated common stock of Employee Stock Ownership Plan
     (28,851 )     (11,651 )
Accumulated other comprehensive loss
     (9,731 )     (9,977 )
 
            
Total shareholders’ equity
     1,302,080       1,316,515  
 
            
Total liabilities and shareholders’ equity
   $ 8,084,630       8,025,298  
 
            
 
                
Equity to assets
     16.11 %     16.40 %
Tangible common equity to assets
     14.22 %     14.53 %
Book value per share
   $ 11.76     $ 11.90  
Tangible book value per share
   $ 10.16     $ 10.31  
Closing market price per share
   $ 11.73     $ 11.27  
Full time equivalent employees
     1,869       1,867  
Number of banking offices
     171       171  

 

 

Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income — Unaudited
(Dollars in thousands, except per share amounts)
                         
    Three months ended  
    March 31,     December 31,  
    2010     2009     2009  
Interest income:
                        
Loans receivable
     80,746       80,708       80,322  
Mortgage-backed securities
     6,145       7,405       6,405  
Taxable investment securities
     998       1,546       1,246  
Tax-free investment securities
     2,684       2,932       2,678  
Interest-earning deposits
     565       39       226  
 
                  
Total interest income
     91,138       92,630       90,877  
 
                        
Interest expense:
                        
Deposits
     21,404       24,637       22,839  
Borrowed funds
     9,700       10,189       9,994  
 
                  
Total interest expense
     31,104       34,826       32,833  
 
                        
Net interest income
     60,034       57,804       58,044  
Provision for loan losses
     8,801       5,781       14,500  
 
                  
Net interest income after provision for loan losses
     51,233       52,023       43,544  
 
                        
Noninterest income:
                        
Impairment losses on securities
     (437 )     —       (5,920 )
Noncredit related losses on securities not expected to be sold (recognized in other comprehensive income)
     340       —       5,004  
 
                  
Net impairment losses
     (97 )     —       (916 )
Gain on sale of investments, net
     2,083       42       26  
Service charges and fees
     8,902       7,871       9,343  
Trust and other financial services income
     1,833       1,348       1,958  
Insurance commission income
     1,142       549       619  
Gain/ (loss) on real estate owned, net
     (24 )     (3,879 )     (120 )
Income from bank owned life insurance
     1,166       1,187       1,195  
Mortgage banking (loss)/ income
     (8 )     1,814       992  
Gain on bargain purchase of Keystone State Savings Bank
     —       —       3,503  
Other operating income
     860       705       695  
 
                  
Total noninterest income
     15,857       9,637       17,295  
 
                        
Noninterest expense:
                        
Compensation and employee benefits
     25,856       23,926       25,637  
Premises and occupancy costs
     6,002       5,978       5,442  
Office operations
     3,237       3,013       3,372  
Processing expenses
     5,696       5,308       5,829  
Marketing expenses
     1,443       929       4,106  
Federal deposit insurance premiums
     2,148       1,890       2,148  
Professional services
     728       641       691  
Amortization of intangible assets
     782       844       649  
Real estate owned expense
     899       433       691  
Contribution to charitable foundation
     —       —       13,822  
Other expense
     1,813       1,304       1,850  
 
                  
Total noninterest expense
     48,604       44,266       64,237  
 
                  
 
                        
Income/ (loss) before income taxes
     18,486       17,394       (3,398 )
Income tax expense/ (benefit)
     5,333       5,092       (4,404 )
 
                  
 
                        
Net income
     13,153       12,302       1,006  
 
                  
 
                        
Basic earnings per share
   $ 0.12     $ 0.11 *   $ 0.01  
 
                        
Diluted earnings per share
   $ 0.12     $ 0.11 *   $ 0.01  
 
                        
Annualized return on average equity
     4.05 %     7.93 %     0.46 %
Annualized return on average assets
     0.65 %     0.70 %     0.05 %
 
                        
Basic common shares outstanding
     108,378,245       108,926,647 *     109,286,606  
Diluted common shares outstanding
     109,052,039       109,180,800 *     109,820,238  
 
*   - Adjusted for 2.25 to 1 exchange ratio.

 

 

Northwest Bancshares, Inc. and Subsidiaries
Supplementary data — unaudited
(Dollars in thousands)
                                 
    Three months ended     Year ended  
    March 31,     December 31,  
    2010     2009     2009     2008  
Allowance for loan losses
                                
Beginning balance
   $ 70,403       54,929       54,929       41,784  
Provision
     8,801       5,781       41,847       22,851  
Charge-offs mortgage
     (625 )     (325 )     (1,437 )     (1,513 )
Charge-offs consumer
     (1,911 )     (1,488 )     (7,045 )     (6,607 )
Charge-offs commercial
     (2,334 )     (1,691 )     (19,334 )     (3,490 )
Recoveries
     502 #     281       1,443       1,904  
 
                        
Ending balance
   $ 74,836       57,487       70,403       54,929  
 
                        
 
                                
Net charge-offs to average loans, annualized
     0.33 %     0.25 %     0.51 %     0.19 %
                                 
    March 31,     December 31,  
    2010     2009     2009     2008  
Nonperforming loans
   $ 117,239       105,533       124,626       99,203  
Real estate owned, net
     22,182       13,848       20,257       16,844  
 
                        
Nonperforming assets
   $ 139,421       119,381       144,883       116,047  
 
                        
 
                                
Nonperforming loans to total loans
     2.16 %     2.05 %     2.35 %     1.91 %
 
                                
Nonperforming assets to total assets
     1.72 %     1.70 %     1.81 %     1.67 %
 
                                
Allowance for loan losses to total loans
     1.38 %     1.11 %     1.33 %     1.06 %
 
                                
Allowance for loan losses to nonperforming loans
     63.83 %     54.47 %     56.49 %     55.37 %

 

 

Northwest Bancshares, Inc. and Subsidiaries
Supplementary data — unaudited
(Dollars in thousands)
Loans past due schedule
     (Number of loans and dollar amount of loans)
                                                                         
    March 31,     December 31,  
    2010     *     2009     *     2008     *  
Loans past due 30 days to 59 days:
                                                                        
One- to four- family residential loans
     360     $ 29,720       1.2 %     350     $ 27,998       1.2 %     392     $ 32,988       1.3 %
Consumer loans
     760       8,509       0.6 %     1,100       11,226       0.8 %     1,157       11,295       0.9 %
Multifamily and commercial RE loans
     89       25,273       2.0 %     85       16,152       1.3 %     99       18,901       1.8 %
Commercial business loans
     57       10,456       2.7 %     48       3,293       0.9 %     86       7,700       2.2 %
 
                                                      
Total loans past due 30 days to 59 days
     1,266     $ 73,958       1.4 %     1,583     $ 58,669       1.1 %     1,734     $ 70,884       1.4 %
 
                                                      
 
                                                                        
Loans past due 60 days to 89 days:
                                                                        
One- to four- family residential loans
     35     $ 2,614       0.1 %     85     $ 6,772       0.3 %     101     $ 7,599       0.3 %
Consumer loans
     333       3,641       0.3 %     392       3,029       0.2 %     379       2,836       0.2 %
Multifamily and commercial RE loans
     27       3,622       0.3 %     35       5,811       0.5 %     54       8,432       0.8 %
Commercial business loans
     29       2,536       0.7 %     26       2,474       0.7 %     45       3,801       1.1 %
 
                                                      
Total loans past due 60 days to 89 days
     424     $ 12,413       0.2 %     538     $ 18,086       0.3 %     579     $ 22,668       0.4 %
 
                                                      
 
                                                                        
Loans past due 90 days or more:
                                                                        
One- to four- family residential loans
     248     $ 26,432       1.1 %     279     $ 29,373       1.3 %     223     $ 20,435       0.8 %
Consumer loans
     779       13,638       1.0 %     727       12,544       0.9 %     687       9,756       0.7 %
Multifamily and commercial RE loans
     201       45,764       3.6 %     199       49,594       4.0 %     155       43,828       4.1 %
Commercial business loans
     133       20,159       5.2 %     124       18,269       4.9 %     114       25,184       7.1 %
 
                                                      
Total loans past due 90 days or more
     1,361     $ 105,993       2.0 %     1,329     $ 109,780       2.1 %     1,179     $ 99,203       1.9 %
 
                                                      
 
*   - Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.

 

 

Northwest Bancshares, Inc. and Subsidiaries
Analysis of loan portfolio by geographic location as of March 31, 2010 — unaudited:
(Dollars in thousands)
Loans outstanding:
                                                                 
    Mortgage     (1)     Consumer     (2)     Commercial     (3)     Total     (4)  
Pennsylvania
   $ 1,970,370       82.3 %     1,185,846       87.4 %     1,119,556       66.9 %     4,275,772       78.7 %
New York
     138,091       5.8 %     100,271       7.4 %     310,315       18.5 %     548,677       10.1 %
Ohio
     26,184       1.1 %     17,318       1.3 %     43,873       2.6 %     87,375       1.6 %
Maryland
     230,143       9.6 %     38,154       2.8 %     154,355       9.2 %     422,652       7.8 %
Florida
     28,292       1.2 %     14,967       1.1 %     45,940       2.7 %     89,199       1.6 %
 
                                                
Total
   $ 2,393,080       100.0 %     1,356,556       100.0 %     1,674,039       100.0 %     5,423,675       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
   $ 18,276       0.9 %     10,471       0.9 %     45,741       4.1 %     74,488       1.7 %
New York
     355       0.3 %     219       0.2 %     903       0.3 %     1,477       0.3 %
Ohio
     196       0.7 %     99       0.6 %     502       1.1 %     797       0.9 %
Maryland
     595       0.3 %     1,299       3.4 %     11,678       7.6 %     13,572       3.2 %
Florida
     7,010       24.8 %     1,550       10.4 %     7,099       15.5 %     15,659       17.6 %
 
                                                
Total
   $ 26,432       1.1 %     13,638       1.0 %     65,923       3.9 %     105,993       2.0 %
 
                                                
 
(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 — unaudited
(Dollars in thousands)
Marketable securities available-for-sale as of March 31, 2010:
                                 
            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
   $ 74       —       (1 )     73  
 
                                
Debt issued by government sponsored enterprises:
                                
Due in one year — five years
     1,980       142       —       2,122  
Due in five years — ten years
     8,572       120       —       8,692  
Due after ten years
     1,216       5       (5 )     1,216  
 
                                
Equity securities
     1,054       208       (112 )     1,150  
 
                                
Municipal securities:
                                
Due in one year — five years
     1,866       59       —       1,925  
Due in five years — ten years
     37,295       1,103       —       38,398  
Due after ten years
     187,570       2,420       (1,915 )     188,075  
 
                                
Corporate trust preferred securities:
                                
Due in one year — five years
     500       —       —       500  
Due after ten years
     26,783       218       (8,189 )     18,812  
 
                                
Mortgage-backed securities:
                                
Fixed rate pass-through
     134,331       6,817       (26 )     141,122  
Variable rate pass-through
     218,684       7,089       (68 )     225,705  
Fixed rate non-agency CMO
     17,910       61       (1,770 )     16,201  
Fixed rate agency CMO
     17,730       1,048       —       18,778  
Variable rate non-agency CMO
     8,182       —       (919 )     7,263  
Variable rate agency CMO
     237,694       3,648       (143 )     241,199  
 
                        
 
                                
Total mortgage-backed securities
     634,531       18,663       (2,926 )     650,268  
 
                        
 
                                
Total marketable securities available-for-sale
   $ 901,441       22,938       (13,148 )     911,231  
 
                        
Marketable securities held-to-maturity as of March 31, 2010:
                                 
            Gross     Gross        
            unrealized     unrealized        
    Amortized     holding     holding     Market  
    cost     gains     losses     value  
Debt issued by government sponsored enterprises:
                                
Due in one year — five years
   $ 80,905       14       (83 )     80,836  
 
                                
Municipal securities:
                                
Due after ten years
     32,085       65       (84 )     32,066  
 
                                
Mortgage-backed securities:
                                
Fixed rate pass-through
     15,147       —       (42 )     15,105  
Variable rate pass-through
     10,149       —       (98 )     10,051  
Fixed rate agency CMO
     99,192       —       (955 )     98,237  
Variable rate agency CMO
     38,478       341       —       38,819  
 
                        
 
                                
Total mortgage-backed securities
     162,966       341       (1,095 )     162,212  
 
                        
 
                                
Total marketable securities available-for-sale
   $ 275,956       420       (1,262 )     275,114  
 
                        
 
                                
Issuers of mortgage-backed securities as of March 31, 2010:
                                
Fannie Mae
   $ 331,145       7,897       (635 )     338,407  
Ginnie Mae
     164,911       2,252       (632 )     166,531  
Freddie Mac
     274,579       8,794       (61 )     283,312  
Non-agency
     26,862       61       (2,693 )     24,230  
 
                        
Total
   $ 797,497       19,004       (4,021 )     812,480  
 
                        

 

 

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,  
    2010       2009  
                    Avg.                       Avg.  
    Average             Yield/       Average             Yield/  
    Balance     Interest     Cost       Balance     Interest     Cost  
Assets:
                                                  
Interest-earning assets:
                                                  
Loans receivable (a) (b) (d)
   $ 5,346,962       81,111       6.11 %       5,208,603       81,128       6.26 %
Mortgage-backed securities (c)
     736,904       6,145       3.34 %       738,132       7,405       4.01 %
Investment securities (c) (d)
     359,097       5,127       5.71 %       386,097       6,057       6.28 %
FHLB stock
     63,242       —       —         63,143       —       —  
Other interest-earning deposits
     946,695       565       0.24 %       76,937       39       0.20 %
 
                                          
 
                                                  
Total interest-earning assets
     7,452,900       92,948       5.02 %       6,472,912       94,629       5.87 %
 
                                                  
Noninterest earning assets (e)
     597,320                         515,476                  
 
                                              
 
                                                  
Total assets
   $ 8,050,220                         6,988,388                  
 
                                              
 
                                                  
Liabilities and shareholders’ equity:
                                                  
Interest-bearing liabilities:
                                                  
Savings accounts
   $ 960,034       2,034       0.86 %       790,467       1,453       0.75 %
Interest-bearing demand accounts
     752,109       398       0.21 %       709,351       806       0.46 %
Money market accounts
     840,727       1,836       0.89 %       704,752       2,523       1.45 %
Certificate accounts
     2,582,782       17,136       2.69 %       2,469,283       19,855       3.26 %
Borrowed funds (f)
     900,740       8,295       3.73 %       1,043,501       8,699       3.38 %
Junior subordinated debentures
     103,094       1,405       5.45 %       108,249       1,490       5.51 %
 
                                          
 
                                                  
Total interest-bearing liabilities
     6,139,486       31,104       2.05 %       5,825,603       34,826       2.42 %
Noninterest bearing liabilities
     611,279                         541,899                  
 
                                              
 
                                                  
Total liabilities
     6,750,765                         6,367,502                  
Shareholders’ equity
     1,299,455                         620,886                  
 
                                              
 
                                                  
Total liabilities and shareholders’ equity
   $ 8,050,220                         6,988,388                  
 
                                              
 
                                                  
Net interest income/ Interest rate spread
             61,844       2.97 %               59,803       3.45 %
 
                                                  
Net interest-earning assets/ Net interest margin
   $ 1,313,414               3.32 %       647,309               3.71 %
 
                                                  
Ratio of interest-earning assets to interest-bearing liabilities
     1.21 X                       1.11 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.

 

 

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,       Three months ended December 31,  
    2010       2009  
                    Avg.                       Avg.  
    Average             Yield/       Average             Yield/  
    Balance     Interest     Cost       Balance     Interest     Cost  
Assets:
                                                  
Interest-earning assets:
                                                  
Loans receivable (a) (b) (d)
   $ 5,346,962       81,111       6.11 %       5,242,823       80,160       6.13 %
Mortgage-backed securities (c)
     736,904       6,145       3.34 %       744,755       6,405       3.44 %
Investment securities (c) (d)
     359,097       5,127       5.71 %       349,309       5,365       6.14 %
FHLB stock
     63,242       —       —         63,216       —       —  
Other interest-earning deposits
     946,695       565       0.24 %       477,269       226       0.19 %
 
                                          
 
                                                  
Total interest-earning assets
     7,452,900       92,948       5.02 %       6,877,372       92,156       5.37 %
 
                                                  
Noninterest earning assets (e)
     597,320                         669,511                  
 
                                              
 
                                                  
Total assets
   $ 8,050,220                         7,546,883                  
 
                                              
 
                                                  
Liabilities and shareholders’ equity:
                                                  
Interest-bearing liabilities:
                                                  
Savings accounts
   $ 960,034       2,034       0.86 %       934,213       1,852       0.79 %
Interest-bearing demand accounts
     752,109       398       0.21 %       755,158       434       0.23 %
Money market accounts
     840,727       1,836       0.89 %       805,347       1,768       0.87 %
Certificate accounts
     2,582,782       17,136       2.69 %       2,604,329       18,785       2.86 %
Borrowed funds (f)
     900,740       8,295       3.73 %       899,711       8,558       3.77 %
Junior subordinated debentures
     103,094       1,405       5.45 %       103,094       1,436       5.45 %
 
                                          
 
                                                  
Total interest-bearing liabilities
     6,139,486       31,104       2.05 %       6,101,852       32,833       2.13 %
 
                                                  
Noninterest bearing liabilities
     611,279                         569,269                  
 
                                              
 
                                                  
Total liabilities
     6,750,765                         6,671,121                  
 
                                                  
Shareholders’ equity
     1,299,455                         875,762                  
 
                                              
 
                                                  
Total liabilities and shareholders’ equity
   $ 8,050,220                         7,546,883                  
 
                                              
 
                                                  
Net interest income/ Interest rate spread
             61,844       2.97 %               59,323       3.24 %
 
                                                  
Net interest-earning assets/ Net interest margin
   $ 1,313,414               3.32 %       775,520               3.45 %
 
                                                  
Ratio of interest-earning assets to interest-bearing liabilities
     1.21 X                       1.13 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.