SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 17, 2014
Northwest Bancshares, Inc.
(Exact name of registrant as specified in its charter)
|
Maryland |
|
1-34582 |
|
27-0950358 |
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(State or other jurisdiction |
|
(Commission File No.) |
|
(I.R.S. Employer |
|
of incorporation) |
|
|
|
Identification No.) |
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100 Liberty Street |
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|
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Warren, Pennsylvania |
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16365 |
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(Address of principal executive office) |
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(Zip code) |
Registrant’s telephone number, including area code: (814) 726-2140
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
Item 2.02 Results of Operations and Financial Condition
On October 17, 2014, Northwest Bancshares, Inc. issued an earnings release for the quarter ended September 30, 2014. A copy of the release is included as exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed “filed” for any purpose.
Item 9.01 Financial Statements and Exhibits
(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) Exhibits
|
Exhibit No. |
|
Description |
|
99.1 |
|
Press release dated October 17, 2014 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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NORTHWEST BANCSHARES, INC. | ||
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DATE: |
October 17, 2014 |
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By: |
/s/ William W. Harvey, Jr. |
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William W. Harvey, Jr. | ||
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Chief Financial Officer | ||
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., Senior Executive Vice President and Chief Financial Officer (814) 726-2140
Northwest Bancshares, Inc. Announces Third Quarter 2014 Earnings and Dividend Declaration
Warren, Pennsylvania — October 17, 2014
Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2014 of $17.3 million, or $0.19 per diluted share. This represents a decrease of $235,000, or 1.3%, compared to the same quarter last year when net income was $17.6 million, or $0.19 per diluted share, and an increase of $4.6 million, or 36.8%, compared to the quarter ended June 30, 2014 when net income was $12.7 million, or $0.14 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended September 30, 2014 were 6.43% and 0.87% compared to 6.18% and 0.88% for the same quarter last year and 4.77% and 0.64% for the quarter ended June 30, 2014.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.13 per share payable on November 10, 2014, to shareholders of record as of October 27, 2014. This represents the 80th 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 more normal earnings this quarter following a second quarter report that was below expectations. The substantial increase in earnings over the previous quarter resulted almost entirely from continued improvement in credit quality which provided an opportunity to reduce the quarterly provision for loan losses by $4.8 million. All other major components of income remained consistent with the previous quarter. Looking ahead we remain focused on improving shareholder returns by enhancing production and increasing revenues while improving efficiency and controlling operating expense.”
Net interest income decreased by $565,000, or 0.9%, to $61.9 million for the quarter ended September 30, 2014, from $62.5 million for the quarter ended September 30, 2013. Interest income on loans receivable and investment securities decreased by $1.6 million from the prior year which was partially offset by a $1.1 million decrease in interest paid on deposit accounts and borrowed funds. These changes from the previous year were due primarily to the continued low level of market interest rates.
The provision for loan losses decreased by $1.5 million, or 30.6%, to $3.5 million for the quarter ended September 30, 2014, from $5.0 million for the quarter ended September 30, 2013. This decrease is due primarily to the improvement in overall asset quality with loans 90 days or more delinquent decreasing $12.6 million, or 21.5%, and total nonaccrual loans decreasing $33.1 million, or 26.9%, compared to a year ago. Additionally, classified loans and troubled debt restructurings decreased by $35.6 million and $17.5 million, respectively, over the past year
Noninterest income increased by $2.1 million, or 12.9%, to $18.2 million for the quarter ended September 30, 2014, from $16.1 million for the quarter ended September 30, 2013. This increase is due primarily to increases in gain on sale of investments of $743,000 and an increase in other operating income of $787,000, as a result of an increase in the dividends paid on Federal Home Loan Bank stock. Additionally, trust and other financial services income increased by $596,000, due primarily to the acquisition of Evans Capital Management, Inc. on January 1, 2014.
Noninterest expense increased by $3.1 million, or 6.1%, to $53.4 million for the quarter ended September 30, 2014, from $50.3 million for the quarter ended September 30, 2013. This increase was due primarily to a $1.2 million increase in marketing expense relating to an ongoing effort to promote the acquisition of home equity loans and checking accounts. Processing expense increased by $687,000 and professional services increased by $523,000, due primarily to amortization of software upgrades made during the past two years and compliance related consulting engagements designed to enhance and strengthen our compliance management system.
Net income for the nine-month period ended September 30, 2014 of $44.6 million represents a decrease of $1.6 million, or 3.4%, compared to net income of $46.2 million for the nine-month period ended September 30, 2013. Diluted earnings per share for the nine-month period ended September 30, 2014 decreased to $0.48 per share from $0.51 per share in the same period last year. The annualized returns on average shareholders’ equity and average assets were 5.44% and 0.75%, respectively, for the current nine-month period compared to 5.46% and 0.78%, respectively, in the prior year.
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 164 community banking offices in Pennsylvania, New York, Ohio and Maryland and 50 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 Savings 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 an increase in 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.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except per share amounts)
|
|
|
(Unaudited) |
|
|
| |
|
|
|
September 30, |
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December 31, |
| |
|
|
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2014 |
|
2013 |
| |
|
Assets |
|
|
|
|
| |
|
Cash and cash equivalents |
|
$ |
83,994 |
|
98,122 |
|
|
Interest-earning deposits in other financial institutions |
|
209,161 |
|
293,149 |
| |
|
Federal funds sold and other short-term investments |
|
634 |
|
634 |
| |
|
Marketable securities available-for-sale (amortized cost of $928,644 and $1,022,078) |
|
930,913 |
|
1,016,767 |
| |
|
Marketable securities held-to-maturity (fair value of $113,322 and $124,061) |
|
110,214 |
|
121,366 |
| |
|
Total cash, interest-earning deposits and marketable securities |
|
1,334,916 |
|
1,530,038 |
| |
|
|
|
|
|
|
| |
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Residential mortgage loans held for sale |
|
— |
|
221 |
| |
|
Residential mortgage loans |
|
2,511,272 |
|
2,482,783 |
| |
|
Home equity loans |
|
1,071,540 |
|
1,083,939 |
| |
|
Other consumer loans |
|
238,653 |
|
228,348 |
| |
|
Commercial real estate loans |
|
1,732,234 |
|
1,608,399 |
| |
|
Commercial loans |
|
403,402 |
|
402,601 |
| |
|
Total loans receivable |
|
5,957,101 |
|
5,806,291 |
| |
|
Allowance for loan losses |
|
(71,650 |
) |
(71,348 |
) | |
|
Loans receivable, net |
|
5,885,451 |
|
5,734,943 |
| |
|
|
|
|
|
|
| |
|
Federal Home Loan Bank stock, at cost |
|
43,985 |
|
43,715 |
| |
|
Accrued interest receivable |
|
19,505 |
|
19,152 |
| |
|
Real estate owned, net |
|
15,007 |
|
18,203 |
| |
|
Premises and Equipment, net |
|
144,759 |
|
146,139 |
| |
|
Bank owned life insurance |
|
143,306 |
|
140,172 |
| |
|
Goodwill and other intangible assets |
|
176,169 |
|
174,644 |
| |
|
Other intangible assets |
|
3,364 |
|
2,319 |
| |
|
Other assets |
|
60,464 |
|
70,715 |
| |
|
Total assets |
|
$ |
7,826,926 |
|
7,880,040 |
|
|
|
|
|
|
|
| |
|
Liabilities and Shareholders’ equity |
|
|
|
|
| |
|
Liabilities |
|
|
|
|
| |
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Noninterest-bearing demand deposits |
|
$ |
884,804 |
|
789,135 |
|
|
Interest-bearing demand deposits |
|
895,280 |
|
852,809 |
| |
|
Money market deposit accounts |
|
1,180,540 |
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1,167,954 |
| |
|
Savings deposits |
|
1,214,284 |
|
1,191,584 |
| |
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Time deposits |
|
1,532,815 |
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1,667,397 |
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Total deposits |
|
5,707,723 |
|
5,668,879 |
| |
|
Borrowed funds |
|
878,448 |
|
881,645 |
| |
|
Advances by borrowers for taxes and insurance |
|
16,267 |
|
26,669 |
| |
|
Accrued interest payable |
|
880 |
|
888 |
| |
|
Other liabilities |
|
43,793 |
|
43,499 |
| |
|
Junior subordinated debentures |
|
103,094 |
|
103,094 |
| |
|
Total liabilities |
|
6,750,205 |
|
6,724,674 |
| |
|
|
|
|
|
|
| |
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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, 94,994,819 shares and 94,243,713 shares issued and outstanding, respectively |
|
950 |
|
943 |
| |
|
Paid-in-capital |
|
627,748 |
|
619,678 |
| |
|
Retained earnings |
|
476,484 |
|
569,728 |
| |
|
Unallocated common stock of Employee Stock Ownership Plan |
|
(21,798 |
) |
(23,083 |
) | |
|
Accumulated other comprehensive loss |
|
(6,663 |
) |
(11,900 |
) | |
|
Total shareholders’ equity |
|
1,076,721 |
|
1,155,366 |
| |
|
Total liabilities and shareholders’ equity |
|
$ |
7,826,926 |
|
7,880,040 |
|
|
|
|
|
|
|
| |
|
Equity to assets |
|
13.76 |
% |
14.66 |
% | |
|
Tangible common equity to assets |
|
11.73 |
% |
12.70 |
% | |
|
Book value per share |
|
$ |
11.33 |
|
12.26 |
|
|
Tangible book value per share |
|
$ |
9.44 |
|
10.38 |
|
|
Closing market price per share |
|
$ |
12.10 |
|
14.78 |
|
|
Full time equivalent employees |
|
2,044 |
|
2,043 |
| |
|
Number of banking offices |
|
164 |
|
165 |
| |
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
|
|
|
Quarter ended |
| |||||
|
|
|
September 30, |
|
June 30, |
| |||
|
|
|
2014 |
|
2013 |
|
2014 |
| |
|
Interest income: |
|
|
|
|
|
|
| |
|
Loans receivable |
|
$ |
70,820 |
|
71,422 |
|
70,726 |
|
|
Mortgage-backed securities |
|
2,504 |
|
3,113 |
|
2,666 |
| |
|
Taxable investment securities |
|
1,004 |
|
1,030 |
|
1,014 |
| |
|
Tax-free investment securities |
|
1,561 |
|
1,912 |
|
1,598 |
| |
|
Interest-earning deposits |
|
187 |
|
253 |
|
286 |
| |
|
Total interest income |
|
76,076 |
|
77,730 |
|
76,290 |
| |
|
|
|
|
|
|
|
|
| |
|
Interest expense: |
|
|
|
|
|
|
| |
|
Deposits |
|
6,305 |
|
7,150 |
|
6,421 |
| |
|
Borrowed funds |
|
7,882 |
|
8,126 |
|
7,793 |
| |
|
Total interest expense |
|
14,187 |
|
15,276 |
|
14,214 |
| |
|
|
|
|
|
|
|
|
| |
|
Net interest income |
|
61,889 |
|
62,454 |
|
62,076 |
| |
|
Provision for loan losses |
|
3,466 |
|
4,992 |
|
8,285 |
| |
|
Net interest income after provision for loan losses |
|
58,423 |
|
57,462 |
|
53,791 |
| |
|
|
|
|
|
|
|
|
| |
|
Noninterest income: |
|
|
|
|
|
|
| |
|
Gain on sale of investments |
|
852 |
|
109 |
|
349 |
| |
|
Service charges and fees |
|
9,665 |
|
9,282 |
|
9,042 |
| |
|
Trust and other financial services income |
|
2,976 |
|
2,380 |
|
3,055 |
| |
|
Insurance commission income |
|
1,778 |
|
2,019 |
|
2,237 |
| |
|
Loss on real estate owned, net |
|
(240 |
) |
(111 |
) |
(562 |
) | |
|
Income from bank owned life insurance |
|
1,083 |
|
1,178 |
|
1,050 |
| |
|
Mortgage banking income |
|
239 |
|
203 |
|
265 |
| |
|
Other operating income |
|
1,836 |
|
1,049 |
|
1,688 |
| |
|
Total noninterest income |
|
18,189 |
|
16,109 |
|
17,124 |
| |
|
|
|
|
|
|
|
|
| |
|
Noninterest expense: |
|
|
|
|
|
|
| |
|
Compensation and employee benefits |
|
28,047 |
|
27,629 |
|
28,543 |
| |
|
Premises and occupancy costs |
|
5,642 |
|
5,633 |
|
5,740 |
| |
|
Office operations |
|
3,419 |
|
3,497 |
|
3,868 |
| |
|
Processing expenses |
|
6,723 |
|
6,036 |
|
6,639 |
| |
|
Marketing expenses |
|
2,211 |
|
1,032 |
|
2,931 |
| |
|
Federal deposit insurance premiums |
|
1,242 |
|
1,377 |
|
1,338 |
| |
|
Professional services |
|
1,854 |
|
1,331 |
|
1,775 |
| |
|
Amortization of intangible assets |
|
330 |
|
291 |
|
331 |
| |
|
Real estate owned expense |
|
636 |
|
681 |
|
459 |
| |
|
Other expense |
|
3,250 |
|
2,770 |
|
2,182 |
| |
|
Total noninterest expense |
|
53,354 |
|
50,277 |
|
53,806 |
| |
|
|
|
|
|
|
|
|
| |
|
Income before income taxes |
|
23,258 |
|
23,294 |
|
17,109 |
| |
|
Income tax expense |
|
5,926 |
|
5,727 |
|
4,435 |
| |
|
|
|
|
|
|
|
|
| |
|
Net income |
|
$ |
17,332 |
|
17,567 |
|
12,674 |
|
|
|
|
|
|
|
|
|
| |
|
Basic earnings per share |
|
$ |
0.19 |
|
0.19 |
|
0.14 |
|
|
|
|
|
|
|
|
|
| |
|
Diluted earnings per share |
|
$ |
0.19 |
|
0.19 |
|
0.14 |
|
|
|
|
|
|
|
|
|
| |
|
Annualized return on average equity |
|
6.43 |
% |
6.18 |
% |
4.77 |
% | |
|
Annualized return on average assets |
|
0.87 |
% |
0.88 |
% |
0.64 |
% | |
|
|
|
|
|
|
|
|
| |
|
Basic common shares outstanding |
|
91,745,512 |
|
90,760,402 |
|
91,491,654 |
| |
|
Diluted common shares outstanding |
|
92,118,154 |
|
91,824,384 |
|
92,531,142 |
| |
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
|
|
|
Nine months ended |
| |||
|
|
|
September 30, |
| |||
|
|
|
2014 |
|
2013 |
| |
|
Interest income: |
|
|
|
|
| |
|
Loans receivable |
|
$ |
210,868 |
|
216,113 |
|
|
Mortgage-backed securities |
|
7,963 |
|
9,862 |
| |
|
Taxable investment securities |
|
3,098 |
|
2,969 |
| |
|
Tax-free investment securities |
|
4,814 |
|
6,069 |
| |
|
Interest-earning deposits |
|
673 |
|
844 |
| |
|
Total interest income |
|
227,416 |
|
235,857 |
| |
|
|
|
|
|
|
| |
|
Interest expense: |
|
|
|
|
| |
|
Deposits |
|
19,216 |
|
22,368 |
| |
|
Borrowed funds |
|
23,389 |
|
23,989 |
| |
|
Total interest expense |
|
42,605 |
|
46,357 |
| |
|
|
|
|
|
|
| |
|
Net interest income |
|
184,811 |
|
189,500 |
| |
|
Provision for loan losses |
|
19,236 |
|
17,555 |
| |
|
Net interest income after provision for loan losses |
|
165,575 |
|
171,945 |
| |
|
|
|
|
|
|
| |
|
Noninterest income: |
|
|
|
|
| |
|
Gain on sale of investments |
|
4,549 |
|
229 |
| |
|
Service charges and fees |
|
27,115 |
|
27,010 |
| |
|
Trust and other financial services income |
|
9,078 |
|
6,847 |
| |
|
Insurance commission income |
|
6,579 |
|
6,504 |
| |
|
Loss on real estate owned, net |
|
(937 |
) |
(2,526 |
) | |
|
Income from bank owned life insurance |
|
3,134 |
|
3,351 |
| |
|
Mortgage banking income |
|
753 |
|
1,395 |
| |
|
Other operating income |
|
4,699 |
|
3,090 |
| |
|
Total noninterest income |
|
54,970 |
|
45,900 |
| |
|
|
|
|
|
|
| |
|
Noninterest expense: |
|
|
|
|
| |
|
Compensation and employee benefits |
|
84,562 |
|
83,715 |
| |
|
Premises and occupancy costs |
|
17,939 |
|
17,530 |
| |
|
Office operations |
|
11,044 |
|
10,631 |
| |
|
Processing expenses |
|
19,951 |
|
19,279 |
| |
|
Marketing expenses |
|
6,779 |
|
5,025 |
| |
|
Federal deposit insurance premiums |
|
3,877 |
|
4,239 |
| |
|
Professional services |
|
5,691 |
|
4,223 |
| |
|
Amortization of intangible assets |
|
992 |
|
988 |
| |
|
Real estate owned expense |
|
1,734 |
|
1,880 |
| |
|
Other expense |
|
7,754 |
|
7,044 |
| |
|
Total noninterest expense |
|
160,323 |
|
154,554 |
| |
|
|
|
|
|
|
| |
|
Income before income taxes |
|
60,222 |
|
63,291 |
| |
|
Income tax expense |
|
15,605 |
|
17,104 |
| |
|
|
|
|
|
|
| |
|
Net income |
|
$ |
44,617 |
|
46,187 |
|
|
|
|
|
|
|
| |
|
Basic earnings per share |
|
$ |
0.49 |
|
0.51 |
|
|
|
|
|
|
|
| |
|
Diluted earnings per share |
|
$ |
0.48 |
|
0.51 |
|
|
|
|
|
|
|
| |
|
Annualized return on average equity |
|
5.44 |
% |
5.46 |
% | |
|
Annualized return on average assets |
|
0.75 |
% |
0.78 |
% | |
|
|
|
|
|
|
| |
|
Basic common shares outstanding |
|
91,465,986 |
|
90,530,417 |
| |
|
Diluted common shares outstanding |
|
92,333,110 |
|
91,210,040 |
| |
Northwest Bancshares, Inc. and Subsidiaries
Asset quality
(Dollars in thousands)
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
December 31, |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
Nonaccrual loans current: |
|
|
|
|
|
|
|
|
| |
|
Residential mortgage loans |
|
$ |
1,645 |
|
1,112 |
|
1,500 |
|
1,361 |
|
|
Home equity loans |
|
1,542 |
|
1,682 |
|
808 |
|
835 |
| |
|
Other consumer loans |
|
108 |
|
112 |
|
81 |
|
98 |
| |
|
Commercial real estate loans |
|
24,193 |
|
27,905 |
|
30,505 |
|
17,866 |
| |
|
Commercial loans |
|
9,775 |
|
7,524 |
|
22,779 |
|
13,357 |
| |
|
Total nonaccrual loans current |
|
$ |
37,263 |
|
38,335 |
|
55,673 |
|
33,517 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nonaccrual loans delinquent 30 days to 59 days: |
|
|
|
|
|
|
|
|
| |
|
Residential mortgage loans |
|
$ |
27 |
|
107 |
|
339 |
|
427 |
|
|
Home equity loans |
|
355 |
|
75 |
|
183 |
|
404 |
| |
|
Other consumer loans |
|
149 |
|
60 |
|
33 |
|
15 |
| |
|
Commercial real estate loans |
|
2,059 |
|
3,788 |
|
3,198 |
|
3,468 |
| |
|
Commercial loans |
|
485 |
|
162 |
|
366 |
|
7,650 |
| |
|
Total nonaccrual loans delinquent 30 days to 59 days |
|
$ |
3,075 |
|
4,192 |
|
4,119 |
|
11,964 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nonaccrual loans delinquent 60 days to 89 days: |
|
|
|
|
|
|
|
|
| |
|
Residential mortgage loans |
|
$ |
782 |
|
936 |
|
1,131 |
|
864 |
|
|
Home equity loans |
|
585 |
|
274 |
|
255 |
|
280 |
| |
|
Other consumer loans |
|
52 |
|
40 |
|
111 |
|
87 |
| |
|
Commercial real estate loans |
|
1,476 |
|
1,584 |
|
2,534 |
|
2,036 |
| |
|
Commercial loans |
|
660 |
|
122 |
|
572 |
|
716 |
| |
|
Total nonaccrual loans delinquent 60 days to 89 days |
|
$ |
3,555 |
|
2,956 |
|
4,603 |
|
3,983 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nonaccrual loans delinquent 90 days or more: |
|
|
|
|
|
|
|
|
| |
|
Residential mortgage loans |
|
$ |
20,319 |
|
21,994 |
|
25,002 |
|
24,625 |
|
|
Home equity loans |
|
6,802 |
|
7,810 |
|
8,959 |
|
8,344 |
| |
|
Other consumer loans |
|
2,098 |
|
1,966 |
|
1,848 |
|
2,057 |
| |
|
Commercial real estate loans |
|
13,552 |
|
15,290 |
|
16,282 |
|
18,433 |
| |
|
Commercial loans |
|
3,162 |
|
4,214 |
|
6,413 |
|
4,298 |
| |
|
Total nonaccrual loans delinquent 90 days or more |
|
$ |
45,933 |
|
51,274 |
|
58,504 |
|
57,757 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total nonaccrual loans |
|
$ |
89,826 |
|
96,757 |
|
122,899 |
|
107,221 |
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
December 31, |
| |
|
|
|
2014 |
|
2014 |
|
2013 |
|
2013 |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
Nonaccrual loans |
|
$ |
89,826 |
|
96,757 |
|
122,899 |
|
107,221 |
|
|
Loans 90 days past maturity and still accruing |
|
390 |
|
271 |
|
809 |
|
690 |
| |
|
Nonperforming loans |
|
90,216 |
|
97,028 |
|
123,708 |
|
107,911 |
| |
|
Real estate owned, net |
|
15,007 |
|
14,915 |
|
20,173 |
|
18,203 |
| |
|
Nonperforming assets |
|
$ |
105,223 |
|
111,943 |
|
143,881 |
|
126,114 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nonaccrual troubled debt restructuring * |
|
$ |
21,871 |
|
23,949 |
|
37,519 |
|
28,889 |
|
|
Accruing troubled debt restructuring |
|
39,995 |
|
39,844 |
|
41,871 |
|
50,277 |
| |
|
Total troubled debt restructuring |
|
$ |
61,866 |
|
63,793 |
|
79,390 |
|
79,166 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nonperforming loans to total loans |
|
1.51 |
% |
1.65 |
% |
2.16 |
% |
1.86 |
% | |
|
|
|
|
|
|
|
|
|
|
| |
|
Nonperforming assets to total assets |
|
1.34 |
% |
1.42 |
% |
1.82 |
% |
1.60 |
% | |
|
|
|
|
|
|
|
|
|
|
| |
|
Allowance for loan losses to total loans |
|
1.20 |
% |
1.21 |
% |
1.32 |
% |
1.23 |
% | |
|
|
|
|
|
|
|
|
|
|
| |
|
Allowance for loan losses to nonperforming loans |
|
79.42 |
% |
73.63 |
% |
61.33 |
% |
66.12 |
% | |
* Amounts included in nonperforming loans above.
Northwest Bancshares, Inc. and Subsidiaries
Delinquency
(Dollars in thousands)
|
Loan delinquency schedule |
|
September 30, |
|
|
|
June 30, |
|
|
|
September 30, |
|
|
|
December 31, |
|
|
| ||||||||||||
|
(Number of loans and dollar amount of loans) |
|
2014 |
|
* |
|
2014 |
|
* |
|
2013 |
|
* |
|
2013 |
|
* |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Loans delinquent 30 days to 59 days: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Residential mortgage loans |
|
79 |
|
$ |
4,241 |
|
0.2 |
% |
71 |
|
$ |
3,842 |
|
0.2 |
% |
87 |
|
$ |
4,391 |
|
0.2 |
% |
374 |
|
$ |
27,486 |
|
1.1 |
% |
|
Home equity loans |
|
151 |
|
5,856 |
|
0.5 |
% |
123 |
|
4,193 |
|
0.4 |
% |
140 |
|
4,161 |
|
0.4 |
% |
213 |
|
6,946 |
|
0.6 |
% | ||||
|
Consumer loans |
|
1,105 |
|
5,076 |
|
2.1 |
% |
953 |
|
4,355 |
|
1.9 |
% |
992 |
|
4,193 |
|
1.9 |
% |
1,010 |
|
4,515 |
|
2.0 |
% | ||||
|
Commercial real estate loans |
|
69 |
|
5,888 |
|
0.3 |
% |
79 |
|
8,247 |
|
0.5 |
% |
73 |
|
6,536 |
|
0.4 |
% |
73 |
|
8,449 |
|
0.5 |
% | ||||
|
Commercial loans |
|
22 |
|
1,413 |
|
0.4 |
% |
35 |
|
1,146 |
|
0.3 |
% |
28 |
|
1,059 |
|
0.3 |
% |
34 |
|
9,243 |
|
2.3 |
% | ||||
|
Total loans delinquent 30 days to 59 days |
|
1,426 |
|
$ |
22,474 |
|
0.4 |
% |
1,261 |
|
$ |
21,783 |
|
0.4 |
% |
1,320 |
|
20,340 |
|
0.4 |
% |
1,704 |
|
$ |
56,639 |
|
1.0 |
% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Loans delinquent 60 days to 89 days: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Residential mortgage loans |
|
87 |
|
$ |
6,558 |
|
0.3 |
% |
81 |
|
$ |
6,024 |
|
0.2 |
% |
87 |
|
$ |
6,360 |
|
0.3 |
% |
103 |
|
$ |
7,568 |
|
0.3 |
% |
|
Home equity loans |
|
54 |
|
1,727 |
|
0.2 |
% |
45 |
|
1,210 |
|
0.1 |
% |
56 |
|
2,193 |
|
0.2 |
% |
67 |
|
2,243 |
|
0.2 |
% | ||||
|
Consumer loans |
|
467 |
|
1,958 |
|
0.8 |
% |
363 |
|
1,454 |
|
0.6 |
% |
412 |
|
1,646 |
|
0.7 |
% |
507 |
|
1,866 |
|
0.8 |
% | ||||
|
Commercial real estate loans |
|
31 |
|
2,762 |
|
0.2 |
% |
31 |
|
2,267 |
|
0.1 |
% |
29 |
|
3,692 |
|
0.2 |
% |
35 |
|
3,968 |
|
0.2 |
% | ||||
|
Commercial loans |
|
13 |
|
970 |
|
0.2 |
% |
16 |
|
709 |
|
0.2 |
% |
15 |
|
1,242 |
|
0.3 |
% |
16 |
|
1,555 |
|
0.4 |
% | ||||
|
Total loans delinquent 60 days to 89 days |
|
652 |
|
$ |
13,975 |
|
0.2 |
% |
536 |
|
$ |
11,664 |
|
0.2 |
% |
599 |
|
15,133 |
|
0.3 |
% |
728 |
|
$ |
17,200 |
|
0.3 |
% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Loans delinquent 90 days or more: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Residential mortgage loans |
|
251 |
|
$ |
20,319 |
|
0.8 |
% |
251 |
|
$ |
21,994 |
|
0.9 |
% |
265 |
|
$ |
25,002 |
|
1.0 |
% |
273 |
|
$ |
24,625 |
|
1.0 |
% |
|
Home equity loans |
|
159 |
|
6,802 |
|
0.6 |
% |
168 |
|
7,810 |
|
0.7 |
% |
203 |
|
8,959 |
|
0.8 |
% |
171 |
|
8,344 |
|
0.8 |
% | ||||
|
Consumer loans |
|
465 |
|
2,098 |
|
0.9 |
% |
412 |
|
1,966 |
|
0.9 |
% |
401 |
|
1,848 |
|
0.8 |
% |
470 |
|
2,057 |
|
0.9 |
% | ||||
|
Commercial real estate loans |
|
110 |
|
13,552 |
|
0.8 |
% |
118 |
|
15,290 |
|
1.0 |
% |
134 |
|
16,282 |
|
1.0 |
% |
124 |
|
18,433 |
|
1.1 |
% | ||||
|
Commercial loans |
|
25 |
|
3,162 |
|
0.8 |
% |
34 |
|
4,214 |
|
1.0 |
% |
50 |
|
6,413 |
|
1.6 |
% |
31 |
|
4,298 |
|
1.1 |
% | ||||
|
Total loans delinquent 90 days or more |
|
1,010 |
|
$ |
45,933 |
|
0.8 |
% |
983 |
|
$ |
51,274 |
|
0.9 |
% |
1,053 |
|
58,504 |
|
1.0 |
% |
1,069 |
|
$ |
57,757 |
|
1.0 |
% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total loans delinquent |
|
3,088 |
|
$ |
82,382 |
|
1.4 |
% |
2,780 |
|
$ |
84,721 |
|
1.5 |
% |
2,972 |
|
$ |
93,977 |
|
1.6 |
% |
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 September 30, 2014
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Recorded |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
investment |
| |
|
|
|
|
|
Special |
|
|
|
|
|
|
|
in loans |
| |
|
|
|
Pass |
|
mention |
|
Substandard |
|
Doubtful |
|
Loss |
|
receivable |
| |
|
Personal Banking: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Residential mortgage loans |
|
$ |
2,494,746 |
|
— |
|
15,102 |
|
— |
|
1,424 |
|
2,511,272 |
|
|
Home equity loans |
|
1,064,738 |
|
— |
|
6,802 |
|
— |
|
— |
|
1,071,540 |
| |
|
Other consumer loans |
|
237,134 |
|
— |
|
1,519 |
|
— |
|
— |
|
238,653 |
| |
|
Total Personal Banking |
|
3,796,618 |
|
— |
|
23,423 |
|
— |
|
1,424 |
|
3,821,465 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Business Banking: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Commercial real estate loans |
|
1,545,245 |
|
40,655 |
|
144,244 |
|
2,090 |
|
— |
|
1,732,234 |
| |
|
Commercial loans |
|
350,377 |
|
14,391 |
|
35,343 |
|
3,291 |
|
— |
|
403,402 |
| |
|
Total Business Banking |
|
1,895,622 |
|
55,046 |
|
179,587 |
|
5,381 |
|
— |
|
2,135,636 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
$ |
5,692,240 |
|
55,046 |
|
203,010 |
|
5,381 |
|
1,424 |
|
5,957,101 |
|
Northwest Bancshares, Inc. and Subsidiaries
Loans by credit quality indicators as of December 31, 2013
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Recorded |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
investment |
| |
|
|
|
|
|
Special |
|
|
|
|
|
|
|
in loans |
| |
|
|
|
Pass |
|
mention |
|
Substandard |
|
Doubtful |
|
Loss |
|
receivable |
| |
|
Personal Banking: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Residential mortgage loans |
|
$ |
2,464,057 |
|
— |
|
17,626 |
|
— |
|
1,321 |
|
2,483,004 |
|
|
Home equity loans |
|
1,075,595 |
|
— |
|
8,344 |
|
— |
|
— |
|
1,083,939 |
| |
|
Other consumer loans |
|
226,922 |
|
— |
|
1,426 |
|
— |
|
— |
|
228,348 |
| |
|
Total Personal Banking |
|
3,766,574 |
|
— |
|
27,396 |
|
— |
|
1,321 |
|
3,795,291 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Business Banking: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Commercial real estate loans |
|
1,398,652 |
|
46,557 |
|
161,906 |
|
1,284 |
|
— |
|
1,608,399 |
| |
|
Commercial loans |
|
345,612 |
|
12,045 |
|
43,040 |
|
1,904 |
|
— |
|
402,601 |
| |
|
Total Business Banking |
|
1,744,264 |
|
58,602 |
|
204,946 |
|
3,188 |
|
— |
|
2,011,000 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
$ |
5,510,838 |
|
58,602 |
|
232,342 |
|
3,188 |
|
1,321 |
|
5,806,291 |
|
Northwest Bancshares, Inc. and Subsidiaries
Allowance for loan losses
(Dollars in thousands)
|
|
|
Quarter ended |
|
Nine months ended |
| |||||
|
|
|
September 30, |
|
September 30, |
| |||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| |
|
Allowance for loan losses |
|
|
|
|
|
|
|
|
| |
|
Beginning balance |
|
$ |
71,442 |
|
72,590 |
|
71,348 |
|
73,219 |
|
|
Provision |
|
3,466 |
|
4,992 |
|
19,236 |
|
17,555 |
| |
|
Charge-offs residential mortgage |
|
(352 |
) |
(546 |
) |
(1,694 |
) |
(2,002 |
) | |
|
Charge-offs home equity |
|
(325 |
) |
(213 |
) |
(1,290 |
) |
(1,388 |
) | |
|
Charge-offs other consumer |
|
(1,446 |
) |
(1,675 |
) |
(4,612 |
) |
(4,359 |
) | |
|
Charge-offs commercial real estate |
|
(2,199 |
) |
(1,048 |
) |
(5,709 |
) |
(7,734 |
) | |
|
Charge-offs commercial |
|
(360 |
) |
(463 |
) |
(10,646 |
) |
(3,685 |
) | |
|
Recoveries |
|
1,424 |
|
2,228 |
|
5,017 |
|
4,259 |
| |
|
Ending balance |
|
$ |
71,650 |
|
75,865 |
|
71,650 |
|
75,865 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Net charge-offs to average loans, annualized |
|
0.22 |
% |
0.12 |
% |
0.43 |
% |
0.35 |
% | |
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 September 30, |
| ||||||||||||
|
|
|
2014 |
|
2013 |
| ||||||||||
|
|
|
|
|
|
|
Avg. |
|
|
|
|
|
Avg. |
| ||
|
|
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
| ||
|
|
|
Balance |
|
Interest |
|
Cost (g) |
|
Balance |
|
Interest |
|
Cost (g) |
| ||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Loans receivable (a) (b) (d) |
|
$ |
5,912,890 |
|
71,306 |
|
4.78 |
% |
$ |
5,703,527 |
|
71,993 |
|
5.01 |
% |
|
Mortgage-backed securities (c) |
|
569,482 |
|
2,504 |
|
1.76 |
% |
701,510 |
|
3,113 |
|
1.78 |
% | ||
|
Investment securities (c) (d) |
|
488,893 |
|
3,405 |
|
2.79 |
% |
545,005 |
|
3,972 |
|
2.92 |
% | ||
|
FHLB stock |
|
43,986 |
|
452 |
|
4.11 |
% |
47,650 |
|
120 |
|
1.01 |
% | ||
|
Other interest-earning deposits |
|
323,447 |
|
187 |
|
0.23 |
% |
376,699 |
|
253 |
|
0.26 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total interest-earning assets |
|
7,338,698 |
|
77,854 |
|
4.24 |
% |
7,374,391 |
|
79,451 |
|
4.31 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Noninterest earning assets (e) |
|
537,065 |
|
|
|
|
|
551,760 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total assets |
|
$ |
7,875,763 |
|
|
|
|
|
$ |
7,926,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Liabilities and shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Savings deposits |
|
$ |
1,228,105 |
|
834 |
|
0.27 |
% |
$ |
1,209,726 |
|
882 |
|
0.29 |
% |
|
Interest-bearing demand deposits |
|
899,231 |
|
152 |
|
0.07 |
% |
854,600 |
|
144 |
|
0.07 |
% | ||
|
Money market deposit accounts |
|
1,187,024 |
|
802 |
|
0.27 |
% |
1,144,522 |
|
768 |
|
0.27 |
% | ||
|
Time deposits |
|
1,553,867 |
|
4,517 |
|
1.15 |
% |
1,735,898 |
|
5,356 |
|
1.22 |
% | ||
|
Borrowed funds (f) |
|
876,034 |
|
6,700 |
|
3.03 |
% |
864,315 |
|
6,690 |
|
3.07 |
% | ||
|
Junior subordinated debentures |
|
103,094 |
|
1,182 |
|
4.49 |
% |
103,094 |
|
1,436 |
|
5.45 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total interest-bearing liabilities |
|
5,847,355 |
|
14,187 |
|
0.96 |
% |
5,912,155 |
|
15,276 |
|
1.03 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Noninterest-bearing demand deposits |
|
891,842 |
|
|
|
|
|
794,411 |
|
|
|
|
| ||
|
Noninterest bearing liabilities |
|
66,432 |
|
|
|
|
|
91,385 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total liabilities |
|
6,805,629 |
|
|
|
|
|
6,797,951 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Shareholders’ equity |
|
1,070,134 |
|
|
|
|
|
1,128,200 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total liabilities and shareholders’ equity |
|
$ |
7,875,763 |
|
|
|
|
|
$ |
7,926,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net interest income/ Interest rate spread |
|
|
|
63,667 |
|
3.28 |
% |
|
|
64,175 |
|
3.28 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net interest-earning assets/ Net interest margin |
|
$ |
1,491,343 |
|
|
|
3.47 |
% |
$ |
1,462,236 |
|
|
|
3.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Ratio of interest-earning assets to interest-bearing liabilities |
|
1.26 |
X |
|
|
|
|
1.25 |
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 and collateralized borrowings.
(g) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.75% and 4.97%, respectively, Investment securities - 2.10% and 2.16%, respectively, Interest-earning assets - 4.17% and 4.22%, respectively. GAAP basis net interest rate spreads were 3.21% and 3.19%, respectively, and GAAP basis net interest margins were 3.40% and 3.39%, respectively.
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.
|
|
|
Nine months ended September 30, |
| ||||||||||||
|
|
|
2014 |
|
2013 |
| ||||||||||
|
|
|
|
|
|
|
Avg. |
|
|
|
|
|
Avg. |
| ||
|
|
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
| ||
|
|
|
Balance |
|
Interest |
|
Cost (g) |
|
Balance |
|
Interest |
|
Cost (g) |
| ||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Loans receivable (a) (b) (d) |
|
$ |
5,856,940 |
|
212,437 |
|
4.85 |
% |
$ |
5,655,512 |
|
217,799 |
|
5.15 |
% |
|
Mortgage-backed securities (c) |
|
597,042 |
|
7,963 |
|
1.78 |
% |
717,785 |
|
9,862 |
|
1.83 |
% | ||
|
Investment securities (c) (d) |
|
501,120 |
|
10,504 |
|
2.79 |
% |
515,751 |
|
12,307 |
|
3.18 |
% | ||
|
FHLB stock |
|
43,882 |
|
1,425 |
|
4.33 |
% |
47,545 |
|
191 |
|
0.54 |
% | ||
|
Other interest-earning deposits |
|
352,370 |
|
673 |
|
0.25 |
% |
428,395 |
|
844 |
|
0.26 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total interest-earning assets |
|
7,351,354 |
|
233,002 |
|
4.23 |
% |
7,364,988 |
|
241,003 |
|
4.36 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Noninterest earning assets (e) |
|
563,902 |
|
|
|
|
|
574,423 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total assets |
|
$ |
7,915,256 |
|
|
|
|
|
$ |
7,939,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Liabilities and shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Savings deposits |
|
$ |
1,225,411 |
|
2,459 |
|
0.27 |
% |
$ |
1,200,106 |
|
2,676 |
|
0.30 |
% |
|
Interest-bearing demand deposits |
|
882,465 |
|
440 |
|
0.07 |
% |
856,269 |
|
433 |
|
0.07 |
% | ||
|
Money market deposit accounts |
|
1,181,056 |
|
2,376 |
|
0.27 |
% |
1,124,572 |
|
2,258 |
|
0.27 |
% | ||
|
Time deposits |
|
1,598,870 |
|
13,941 |
|
1.17 |
% |
1,791,819 |
|
17,001 |
|
1.27 |
% | ||
|
Borrowed funds (f) |
|
876,606 |
|
19,880 |
|
3.03 |
% |
861,465 |
|
19,728 |
|
3.06 |
% | ||
|
Junior subordinated debentures |
|
103,094 |
|
3,509 |
|
4.49 |
% |
103,094 |
|
4,261 |
|
5.45 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total interest-bearing liabilities |
|
5,867,502 |
|
42,605 |
|
0.97 |
% |
5,937,325 |
|
46,357 |
|
1.04 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Noninterest-bearing demand deposits |
|
853,294 |
|
|
|
|
|
776,087 |
|
|
|
|
| ||
|
Noninterest bearing liabilities |
|
98,877 |
|
|
|
|
|
94,651 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total liabilities |
|
6,819,673 |
|
|
|
|
|
6,808,063 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Shareholders’ equity |
|
1,095,583 |
|
|
|
|
|
1,131,348 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total liabilities and shareholders’ equity |
|
$ |
7,915,256 |
|
|
|
|
|
$ |
7,939,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net interest income/ Interest rate spread |
|
|
|
190,397 |
|
3.26 |
% |
|
|
194,646 |
|
3.32 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net interest-earning assets/ Net interest margin |
|
$ |
1,483,852 |
|
|
|
3.45 |
% |
$ |
1,427,663 |
|
|
|
3.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Ratio of interest-earning assets to interest-bearing liabilities |
|
1.25 |
X |
|
|
|
|
1.24 |
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 and collateralized borrowings.
(g) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.81% and 5.11%, respectively, Investment securities - 2.11% and 2.34%, respectively, Interest-earning assets - 4.15% and 4.27%, respectively. GAAP basis net interest rate spreads were 3.18% and 3.23%, respectively, and GAAP basis net interest margins were 3.38% and 3.43%, respectively.
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 |
| ||||||||||
|
|
|
September 30, 2014 |
|
June 30, 2014 |
| ||||||||||
|
|
|
|
|
|
|
Avg. |
|
|
|
|
|
Avg. |
| ||
|
|
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
| ||
|
|
|
Balance |
|
Interest |
|
Cost (g) |
|
Balance |
|
Interest |
|
Cost (g) |
| ||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Loans receivable (a) (b) (d) |
|
$ |
5,912,890 |
|
71,306 |
|
4.78 |
% |
$ |
5,833,540 |
|
71,266 |
|
4.90 |
% |
|
Mortgage-backed securities (c) |
|
569,482 |
|
2,504 |
|
1.76 |
% |
601,066 |
|
2,666 |
|
1.77 |
% | ||
|
Investment securities (c) (d) |
|
488,893 |
|
3,405 |
|
2.79 |
% |
507,315 |
|
3,472 |
|
2.74 |
% | ||
|
FHLB stock |
|
43,986 |
|
452 |
|
4.11 |
% |
43,944 |
|
697 |
|
6.34 |
% | ||
|
Other interest-earning deposits |
|
323,447 |
|
187 |
|
0.23 |
% |
424,434 |
|
286 |
|
0.27 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total interest-earning assets |
|
7,338,698 |
|
77,854 |
|
4.24 |
% |
7,410,299 |
|
78,387 |
|
4.23 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Noninterest earning assets (e) |
|
537,065 |
|
|
|
|
|
529,095 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total assets |
|
$ |
7,875,763 |
|
|
|
|
|
$ |
7,939,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Liabilities and shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Savings deposits |
|
$ |
1,228,105 |
|
834 |
|
0.27 |
% |
$ |
1,239,563 |
|
821 |
|
0.27 |
% |
|
Interest-bearing demand deposits |
|
899,231 |
|
152 |
|
0.07 |
% |
896,014 |
|
149 |
|
0.07 |
% | ||
|
Money market deposit accounts |
|
1,187,024 |
|
802 |
|
0.27 |
% |
1,182,542 |
|
792 |
|
0.27 |
% | ||
|
Time deposits |
|
1,553,867 |
|
4,517 |
|
1.15 |
% |
1,598,523 |
|
4,659 |
|
1.17 |
% | ||
|
Borrowed funds (f) |
|
876,034 |
|
6,700 |
|
3.03 |
% |
872,653 |
|
6,623 |
|
3.04 |
% | ||
|
Junior subordinated debentures |
|
103,094 |
|
1,182 |
|
4.49 |
% |
103,094 |
|
1,170 |
|
4.49 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total interest-bearing liabilities |
|
5,847,355 |
|
14,187 |
|
0.96 |
% |
5,892,389 |
|
14,214 |
|
0.97 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Noninterest-bearing demand deposits |
|
891,842 |
|
|
|
|
|
852,253 |
|
|
|
|
| ||
|
Noninterest bearing liabilities |
|
66,432 |
|
|
|
|
|
128,072 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total liabilities |
|
6,805,629 |
|
|
|
|
|
6,872,714 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Shareholders’ equity |
|
1,070,134 |
|
|
|
|
|
1,066,680 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total liabilities and shareholders’ equity |
|
$ |
7,875,763 |
|
|
|
|
|
$ |
7,939,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net interest income/ Interest rate spread |
|
|
|
63,667 |
|
3.28 |
% |
|
|
64,173 |
|
3.26 |
% | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Net interest-earning assets/ Net interest margin |
|
$ |
1,491,343 |
|
|
|
3.47 |
% |
$ |
1,517,910 |
|
|
|
3.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Ratio of interest-earning assets to interest-bearing liabilities |
|
1.26 |
X |
|
|
|
|
1.26 |
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 and collateralized borrowings.
(g) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.75% and 4.86%, respectively, Investment securities - 2.10% and 2.06%, respectively, Interest-earning assets - 4.17% and 4.17%, respectively. GAAP basis net interest rate spreads were 3.21% and 3.20%, respectively, and GAAP basis net interest margins were 3.40% and 3.39%, respectively.