NORTHWEST BANCSHARES, INC. 
By 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 61(st) 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
Consolidated Statements of Financial Condition
(Dollars in thousands, except per share amounts)
December December
31, 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
* -Adjusted for 2.25 to 1
exchange rate.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
Three months ended
December 31,
2009 2008
---- ----
Interest income:
Loans receivable $80,322 83,161
Mortgage-backed securities 6,405 8,830
Taxable investment securities 1,246 2,102
Tax-free investment securities 2,678 3,032
Interest-earning deposits 226 42
Total interest income 90,877 97,167
Interest expense:
Deposits 22,839 27,259
Borrowed funds 9,994 10,405
Total interest expense 32,833 37,664
Net interest income 58,044 59,503
Provision for loan losses 14,500 10,212
Net interest income after
provision
for loan losses 43,544 49,291
Noninterest income:
Impairment losses on securities (5,920) (3,653)
Noncredit related losses on
securities not expected
to be sold (recognized in other
comprehensive income) 5,004 -
----- ---
Net impairment losses (916) (3,653)
Gain on sale of investments, net 26 2,199
Service charges and fees 9,343 8,337
Trust and other financial
services income 1,958 1,491
Insurance commission income 619 619
Gain/ (loss) on sale of real
estate owned, net (120) 11
Income from bank owned life
insurance 1,195 1,213
Mortgage banking income 702 12
Non-cash recovery/ (impairment)
of MSRs 290 (2,330)
Gain on bargain purchase 3,503 -
Other operating income 695 1,366
Total noninterest income 17,295 9,265
Noninterest expense:
Compensation and employee
benefits 25,637 23,408
Premises and occupancy costs 5,442 5,400
Office operations 3,372 3,185
Processing expenses 5,829 4,861
Marketing expenses 4,106 1,915
Federal deposit insurance
premiums 2,148 1,020
FDIC Special Assessment - -
Professional services 691 668
Amortization of intangible assets 649 848
Loss on early extinguishment of
debt
Contribution to charitable
foundation 13,822 -
Other expense 2,541 2,169
Total noninterest expense 64,237 43,474
(Loss)/income before income
taxes (3,398) 15,082
Income tax (benefit)/ expense (4,404) 3,798
------
Net income $1,006 11,284
======
Basic earnings per share 0.01 $0.10 *
Diluted earnings per share 0.01 $0.10 *
Annualized return on average
equity 0.46% 7.27%
Annualized return on average
assets 0.05% 0.65%
Basic common shares outstanding 109,286,606 108,873,585 *
Diluted common shares outstanding 109,820,238 109,346,564 *
Year ended
December 31,
2009 2008
---- ----
Interest income:
Loans receivable 320,121 327,128
Mortgage-backed securities 27,263 34,694
Taxable investment securities 5,384 11,828
Tax-free investment securities 11,054 12,253
Interest-earning deposits 641 2,756
Total interest income 364,463 388,659
Interest expense:
Deposits 95,394 137,061
Borrowed funds 40,412 32,232
Total interest expense 135,806 169,293
Net interest income 228,657 219,366
Provision for loan losses 41,847 22,851
Net interest income after provision
for loan losses 186,810 196,515
Noninterest income:
Impairment losses on securities (12,408) (16,004)
Noncredit related losses on securities
not expected
to be sold (recognized in other
comprehensive income) 6,311 -
----- ---
Net impairment losses (6,097) (16,004)
Gain on sale of investments, net 403 6,037
Service charges and fees 34,811 32,432
Trust and other financial services income 6,307 6,718
Insurance commission income 2,658 2,376
Gain/ (loss) on sale of real estate
owned, net (4,054) (428)
Income from bank owned life insurance 4,791 4,797
Mortgage banking income 5,594 665
Non-cash recovery/ (impairment) of MSRs 1,840 (2,165)
Gain on bargain purchase 3,503
Other operating income 3,581 4,324
Total noninterest income 53,337 38,752
Noninterest expense:
Compensation and employee benefits 95,594 91,129
Premises and occupancy costs 21,963 21,924
Office operations 12,947 13,237
Processing expenses 21,312 18,652
Marketing expenses 9,152 5,500
Federal deposit insurance premiums 8,309 3,884
FDIC Special Assessment 3,288
Professional services 2,590 2,582
Amortization of intangible assets 3,020 4,387
Loss on early extinguishment of debt 705
Contribution to charitable foundation 13,822
Other expense 8,497 8,128
Total noninterest expense 200,494 170,128
(Loss)/ income before income taxes 39,653 65,139
Income tax (benefit)/ expense 7,000 16,968
Net income 32,653 48,171
Basic earnings per share $0.30 $0.44 *
Diluted earnings per share $0.30 $0.44 *
Annualized return on average equity 4.71% 7.75%
Annualized return on average assets 0.46% 0.70%
Basic common shares outstanding 109,078,129 108,815,648 *
Diluted common shares outstanding 109,459,875 109,346,454 *
* - Adjusted for 2.25 to 1 exchange ratio.
Northwest Bancshares, Inc. and Subsidiaries
Supplementary data
(Dollars in thousands)
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
Supplementary data
(Dollars in thousands)
Loans past due schedule
(Number of loans and
dollar amount of loans)
December 31,
------------
2009 * 2008 *
---- ----
Loans past due 30 days
to 59 days:
One- to four- family
residential loans 350 $27,998 1.2% 392 $32,988 1.3%
Consumer loans 1,100 11,226 0.8% 1,157 11,295 0.9%
Multifamily and
commercial RE loans 85 16,152 1.3% 99 18,901 1.8%
Commercial business
loans 48 3,293 0.9% 86 7,700 2.2%
--- ----- --- --- ----- ---
Total loans past due 30
days to 59 days 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 85 $6,772 0.3% 101 $7,599 0.3%
Consumer loans 392 3,029 0.2% 379 2,836 0.2%
Multifamily and
commercial RE loans 35 5,811 0.5% 54 8,432 0.8%
Commercial business
loans 26 2,474 0.7% 45 3,801 1.1%
--- ----- --- --- ----- ---
Total loans past due 60
days to 89 days 538 $18,086 0.3% 579 $22,668 0.4%
=== ======= === === ======= ===
Loans past due 90 days
or more:
One- to four- family
residential loans 279 $29,373 1.3% 223 $20,435 0.8%
Consumer loans 727 12,544 0.9% 687 9,756 0.7%
Multifamily and
commercial RE loans 199 49,594 4.0% 155 43,828 4.1%
Commercial business
loans 124 18,269 4.9% 114 25,184 7.1%
--- ------ --- --- ------ ---
Total loans past due 90
days or more 1,329 $109,780 2.1% 1,179 $99,203 1.9%
===== ======== === ===== ======= ===
Loans past due schedule
(Number of loans and
dollar amount of loans)
December 31,
------------
2007 *
----
Loans past due 30 days
to 59 days:
One- to four- family
residential loans 361 $27,270 1.1%
Consumer loans 1,331 10,550 0.8%
Multifamily and
commercial RE loans 88 11,331 1.3%
Commercial business
loans 70 9,947 3.0%
--- -----
Total loans past due 30
days to 59 days 1,850 $59,098 1.2%
===== =======
Loans past due 60 days
to 89 days:
One- to four- family
residential loans 99 $6,077 0.3%
Consumer loans 437 2,676 0.2%
Multifamily and
commercial RE loans 41 4,984 0.6%
Commercial business
loans 34 2,550 0.8%
--- -----
Total loans past due 60
days to 89 days 611 $16,287 0.3%
=== =======
Loans past due 90 days
or more:
One- to four- family
residential loans 193 $12,542 0.5%
Consumer loans 744 7,582 0.6%
Multifamily and
commercial RE loans 105 24,323 2.9%
Commercial business
loans 84 5,163 1.6%
--- -----
Total loans past due 90
days or more 1,126 $49,610 1.0%
===== =======
* -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 December 31,
2009:
(Dollars in thousands)
Loans outstanding:
------------------
Mortgage (1) Consumer (2)
-------- --------
Pennsylvania $1,913,127 81.9% 1,189,667 87.9%
New York 136,729 5.9% 98,870 7.3%
Ohio 24,973 1.1% 17,048 1.3%
Maryland 232,146 9.9% 39,227 2.9%
Florida 28,727 1.2% 9,064 0.7%
------ --- ----- ---
Total $2,335,702 100.0% 1,353,876 100.0%
========== ===== ========= =====
Loans outstanding:
------------------
Commercial (3) Total (4)
---------- -----
Pennsylvania 1,057,995 65.7% 4,160,789 78.4%
New York 302,145 18.8% 537,744 10.1%
Ohio 43,338 2.7% 85,359 1.6%
Maryland 157,262 9.8% 428,635 8.1%
Florida 49,147 3.1% 86,938 1.6%
------ --- ------ ---
Total 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)
-------- --------
Pennsylvania $21,683 1.1% 9,571 0.8%
New York 386 0.3% 230 0.2%
Ohio 196 0.8% 78 0.5%
Maryland 702 0.3% 1,000 2.5%
Florida 6,406 22.3% 1,665 18.4%
---- ----
Total $29,373 1.3% 12,544 0.9%
======= === ===
Loans 90 or more
past due:
----------------
Commercial (7) Total (8)
---------- -----
Pennsylvania 46,649 4.4% 77,903 1.9%
New York 1,040 0.3% 1,656 0.3%
Ohio 496 1.1% 770 0.9%
Maryland 11,942 7.6% 13,644 3.2%
Florida 7,736 15.7% 15,807 18.2%
---- ----
Total 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
---
Average Interest Avg.
Balance Yield/
Cost
----
ASSETS:
-------
Interest-earning assets:
Loans receivable (a) (b) (d) $5,242,823 80,160 6.13%
Mortgage-backed securities (c) 744,755 6,405 3.44%
Investment securities (c) (d) (e) 349,309 5,365 6.14%
FHLB stock 63,216 - 0.00%
Other interest-earning deposits 477,269 226 0.19%
------- ---
Total interest-earning assets 6,877,372 92,156 5.37%
Noninterest earning assets (f) 669,511
-------
TOTAL ASSETS $7,546,883
==========
LIABILITIES AND SHAREHOLDERS'
EQUITY:
-----------------------------
Interest-bearing liabilities:
Savings accounts $934,213 1,852 0.79%
Interest-bearing demand accounts 755,158 434 0.23%
Money market accounts 805,347 1,768 0.87%
Certificate accounts 2,604,329 18,785 2.86%
Borrowed funds (g) 899,711 8,558 3.77%
Junior subordinated debentures 103,094 1,436 5.45%
------- -----
Total interest-bearing
liabilities 6,101,852 32,833 2.13%
Noninterest bearing liabilities 569,269
-------
Total liabilities 6,671,121
Shareholders' equity 875,762
-------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $7,546,883
==========
Net interest income/ Interest
rate spread 59,323 3.24%
Net interest-earning assets/
Net interest margin $775,520 3.45%
Ratio of interest-earning assets
to
interest-bearing liabilities 1.13X
---------------------------- -----
Three months ended December 31,
2008
---
Average Interest Avg.
Balance Yield/
Cost
----
ASSETS:
-------
Interest-earning assets:
Loans receivable (a) (b) (d) 5,161,835 83,554 6.42%
Mortgage-backed securities (c) 761,155 8,830 4.64%
Investment securities (c) (d) (e) 421,417 6,452 6.12%
FHLB stock 60,969 314 2.06%
Other interest-earning deposits 18,846 42 0.87%
------ ---
Total interest-earning assets 6,424,222 99,192 6.13%
Noninterest earning assets (f) 496,051
-------
TOTAL ASSETS 6,920,273
=========
LIABILITIES AND SHAREHOLDERS'
EQUITY:
-----------------------------
Interest-bearing liabilities:
Savings accounts 779,238 2,272 1.16%
Interest-bearing demand accounts 722,807 1,305 0.72%
Money market accounts 708,655 2,976 1.67%
Certificate accounts 2,452,075 20,706 3.35%
Borrowed funds (g) 1,009,931 9,013 3.54%
Junior subordinated debentures 108,260 1,392 5.03%
------- -----
Total interest-bearing
liabilities 5,780,966 37,664 2.58%
Noninterest bearing liabilities 518,031
-------
Total liabilities 6,298,997
Shareholders' equity 621,276
-------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 6,920,273
=========
Net interest income/ Interest
rate spread 61,528 3.55%
Net interest-earning assets/
Net interest margin 643,256 3.83%
Ratio of interest-earning assets
to
interest-bearing liabilities 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
---
Average Interest Avg.
Balance Yield/
Cost
----
ASSETS:
-------
Interest-earning assets:
Loans receivable (a) (b) (d) $5,199,829 321,764 6.17%
Mortgage-backed securities (c) 720,683 27,263 3.78%
Investment securities (c) (d) (e) 360,620 22,390 6.21%
FHLB stock 63,162 - 0.00%
Other interest-earning deposits 297,228 641 0.21%
------- ---
Total interest-earning assets 6,641,522 372,058 5.59%
Noninterest earning assets (f) 523,038
-------
TOTAL ASSETS $7,164,560
==========
LIABILITIES AND SHAREHOLDERS'
EQUITY:
-----------------------------
Interest-bearing liabilities:
Savings accounts $850,707 6,501 0.76%
Interest-bearing demand accounts 739,102 2,536 0.34%
Money market accounts 752,166 8,471 1.13%
Certificate accounts 2,546,867 77,886 3.06%
Borrowed funds (g) 936,571 34,578 3.69%
Junior subordinated debentures 105,672 5,834 5.45%
------- -----
Total interest-bearing
liabilities 5,931,085 135,806 2.29%
Noninterest bearing liabilities 540,536
-------
Total liabilities 6,471,621
Shareholders' equity 692,939
-------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $7,164,560
==========
Net interest income/ Interest
rate spread 236,252 3.30%
Net interest-earning assets/
Net interest margin $710,437 3.56%
Ratio of interest-earning assets
to
interest-bearing liabilities 1.12X
---------------------------- -----
Year ended December 31,
2008
---
Average Interest Avg.
Balance Yield/
Cost
----
ASSETS:
-------
Interest-earning assets:
Loans receivable (a) (b) (d) 5,016,694 328,687 6.50%
Mortgage-backed securities (c) 732,281 34,694 4.74%
Investment securities (c) (d) (e) 478,933 29,250 6.11%
FHLB stock 48,167 1,428 2.96%
Other interest-earning deposits 104,895 2,756 2.59%
------- -----
Total interest-earning assets 6,380,970 396,815 6.18%
Noninterest earning assets (f) 488,579
-------
TOTAL ASSETS 6,869,549
=========
LIABILITIES AND SHAREHOLDERS'
EQUITY:
-----------------------------
Interest-bearing liabilities:
Savings accounts 778,341 9,159 1.18%
Interest-bearing demand accounts 732,097 6,434 0.88%
Money market accounts 720,713 14,726 2.04%
Certificate accounts 2,716,815 106,742 3.93%
Borrowed funds (g) 718,657 26,893 3.74%
Junior subordinated debentures 108,287 5,339 4.86%
------- -----
Total interest-bearing
liabilities 5,774,910 169,293 2.93%
Noninterest bearing liabilities 473,410
-------
Total liabilities 6,248,320
Shareholders' equity 621,229
-------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 6,869,549
=========
Net interest income/ Interest
rate spread 227,522 3.25%
Net interest-earning assets/
Net interest margin 606,060 3.57%
Ratio of interest-earning assets
to
interest-bearing liabilities 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.
