NORTHWEST BANCSHARES, INC. 
By WARREN, Pa., Jan. 23, 2012 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2011 of $15.2 million, or $0.16 per diluted share. This represents an increase of $2.5 million, or 19.1%, over the same quarter last year when net income was $12.7 million, or $0.12 per diluted share, and a decrease of $1.5 million compared to the quarter ended September 30, 2011 when net income was $16.7 million, or $0.17 per diluted share. The annualized returns on average shareholders' equity and average assets for the current quarter were 5.23% and 0.76% compared to 3.90% and 0.63% for the same quarter last year and 5.62% and 0.83% for the quarter ended September 30, 2011.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.12 per share, an increase of $0.01 per share, or 9.1%, payable on February 16, 2012, to shareholders of record as of February 2, 2012. This represents the 69th consecutive quarter in which the Company has paid a cash dividend.
In making this announcement, William J. Wagner, President and CEO, noted, "We were pleased with most areas of our operations for the most recent quarter and the 2011 calendar year. Compared to prior year periods, net interest income remained at historically strong levels and all other sources of income remained relatively consistent as a reduction in service charges on deposits was offset by an increase in fee income from trust and insurance services. Increases in operating expense resulted primarily from additional compensation expense and professional fees that were incurred in conjunction with initiatives to strengthen our compliance management system. Although delinquency continues to improve, loan loss provisions and loan charge-offs remain at elevated levels as we continue to work through the credit challenges that have accumulated over the past three years. Stock repurchases were curtailed in the most recent quarter with only 170,000 shares purchased, as the market value of our stock increased substantially. Given our strong capital position, the Board of Directors elected to increase the dividend by $0.01 per quarter for the third consecutive year, resulting in a dividend yield of approximately 3.8%."
Net interest income decreased by $692,000, or 1.0%, to $66.5 million for the quarter ended December 31, 2011, from $67.2 million for the quarter ended December 31, 2010, which was primarily attributable to a decrease in interest income from loans of $3.2 million, or 3.8%, to $79.9 million. Partially offsetting this decrease was a decrease in interest on deposits of $2.8 million, or 16.4%, to $14.2 million. Both of these decreases were primarily due to decreases in market interest rates.
The provision for loan losses decreased by $3.4 million, or 24.5%, to $10.5 million for the quarter ended December 31, 2011, from $13.9 million a year ago. As of December 31, 2011, the allowance for loan losses was $71.1 million, or 1.28% of total loans, compared to $76.4 million, or 1.38% of total loans, as of December 31, 2010. Nonperforming loans decreased $17.3 million, or 11.6%, to $131.1 million at December 31, 2011, from $148.4 million at December 31, 2010. The ratio of nonperforming assets to total assets decreased to 1.99% at December 31, 2011 from 2.08% at December 31, 2010.
Noninterest income decreased by $1.2 million, or 7.4%, to $14.0 million for the quarter ended December 31, 2011, from $15.2 million for the quarter ended December 31, 2010 primarily due to a decrease in mortgage banking income of $1.5 million, or 102.0%. This reduction resulted from the Company retaining most of the mortgage loans originated rather than selling those loans into the secondary market.
Noninterest expense decreased by $2.3 million, or 4.5%, to $48.4 million for the quarter ended December 31, 2011, from $50.7 million in the prior year due primarily to a decrease in federal deposit insurance premiums of $1.4 million, or 60.0%, to $933,000 as the assessment formula was changed to calculate premiums based on assets rather than deposits.
Net income for the year ended December 31, 2011 of $64.1 million, or $0.64 per diluted share represents an increase of $6.6 million, or 11.5% compared to net income of $57.5 million, or $0.53 per diluted share, for the year ended December 31, 2010. The annual returns on average shareholders' equity and average assets were 5.24% and 0.80%, respectively, for the current year compared to 4.40% and 0.71%, respectively, in the prior year. Year over year net interest income increased by $9.6 million, or 3.7%, and the provision for loan losses decreased by $6.3 million, or 15.6%. Partially offsetting these improvements was a decrease in noninterest income of $2.3 million, or 3.7%, and an increase in noninterest expense of $3.7 million, or 1.9%.
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 as well as benefits and wealth management services. Northwest operates 168 community banking offices in Pennsylvania, New York, Ohio and Maryland and 52 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. 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 31,
------------
Assets 2011 2010
------ ---- ----
Cash and cash equivalents $94,276 40,708
Interest-earning deposits in other financial institutions 593,388 677,771
Federal funds sold and other short-term investments 633 632
Marketable securities available-for-sale (amortized cost of $885,408 and $945,571) 908,349 950,463
Marketable securities held-to-maturity (fair value of $239,412 and $354,126) 231,389 357,922
------- -------
Total cash, interest-earning
deposits and marketable
securities 1,828,035 2,027,496
Loans held for sale 967 11,376
Residential mortgage loans 2,396,399 2,386,928
Home equity loans 1,084,786 1,095,953
Other consumer loans 245,689 255,776
Commercial real estate loans 1,435,767 1,350,319
Commercial loans 387,911 433,653
------- -------
Total loans receivable 5,551,519 5,534,005
Allowance for loan losses (71,138) (76,412)
------- -------
Loans receivable, net 5,480,381 5,457,593
Federal Home Loan Bank stock, at cost 48,935 60,080
Accrued interest receivable 25,502 26,216
Real estate owned, net 26,887 20,780
Premises and Equipment, net 132,152 128,101
Bank owned life insurance 133,524 132,237
Goodwill 171,882 171,882
Other intangible assets 2,123 3,942
Other assets 107,203 119,828
------- -------
Total assets $7,956,624 8,148,155
Liabilities and Shareholders' equity
------------------------------------
Liabilities
Noninterest-bearing demand deposits $658,560 575,281
Interest-bearing demand deposits 800,676 782,257
Savings deposits 2,036,272 1,948,882
Time deposits 2,284,817 2,457,916
--------- ---------
Total deposits 5,780,325 5,764,336
Borrowed funds 827,925 891,293
Advances by borrowers for taxes and insurance 23,571 22,868
Accrued interest payable 1,104 1,716
Other liabilities 66,782 57,398
Junior subordinated debentures 103,094 103,094
------- -------
Total liabilities 6,802,801 6,840,705
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, 97,493,046 shares
and 110,295,117 shares
issued, respectively 975 1,103
Paid-in-capital 659,523 824,164
Retained earnings 543,598 523,089
Unallocated common stock of Employee Stock Ownership Plan (27,047) (27,409)
Accumulated other comprehensive loss (23,226) (13,497)
------- -------
Total shareholders' equity 1,153,823 1,307,450
Total liabilities and
shareholders' equity $7,956,624 8,148,155
Equity to
assets 14.50% 16.05%
Tangible
common
equity to
assets 12.59% 14.19%
Book value
per share $11.83 $11.85
Tangible
book value
per share $10.05 $10.26
Closing
market
price per
share $12.44 $11.78
Full time
equivalent
employees 1,950 1,897
Number of
banking
offices 168 171
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
Three months ended
------------------
December 31, September 30,
2011 2010 2011
---- ---- ----
Interest income:
Loans receivable $79,930 83,096 80,562
Mortgage-backed
securities 5,077 5,886 5,544
Taxable investment
securities 776 428 684
Tax-free
investment
securities 2,600 3,111 2,848
Interest-earning
deposits 423 496 393
Total interest
income 88,806 93,017 90,031
Interest expense:
Deposits 14,227 17,025 14,958
Borrowed funds 8,041 8,762 8,061
Total interest
expense 22,268 25,787 23,019
Net interest
income 66,538 67,230 67,012
Provision for loan losses 10,502 13,918 8,057
------ ------ -----
Net interest
income after
provision
for loan losses 56,036 53,312 58,955
Noninterest income:
Impairment losses
on securities (1,205) (1,841) -
Noncredit related
losses on
securities not
expected
to be sold
(recognized in
other
comprehensive
income) 775 1,006 -
--- ----- ---
Net impairment
losses (430) (835) -
Gain on sale of
investments, net 157 8 152
Service charges and
fees 8,630 9,296 8,499
Trust and other
financial services
income 1,967 1,907 2,063
Insurance
commission income 1,582 1,362 1,796
Loss on real estate
owned, net (466) (279) (1,340)
Income from bank
owned life
insurance 1,199 1,228 1,938
Mortgage banking
income/(loss) (29) 1,423 400
Other operating
income 1,428 1,058 1,002
Total
noninterest
income 14,038 15,168 14,510
Noninterest expense:
Compensation and
employee benefits 25,434 25,328 26,004
Premises and
occupancy costs 5,556 5,675 5,658
Office operations 3,286 3,233 3,209
Processing expenses 5,982 6,041 5,896
Marketing expenses 3,098 2,930 2,788
Federal deposit
insurance premiums 933 2,334 1,386
Professional
services 1,441 291 1,238
Amortization of
intangible assets 374 518 475
Real estate owned
expense 462 636 483
Acquisition expense - 591 -
Other expense 1,870 3,122 2,786
Total
noninterest
expense 48,436 50,699 49,923
------ ------ ------
Income before
income taxes 21,638 17,781 23,542
Income tax expense 6,463 5,043 6,822
Net income $15,175 12,738 16,720
======= ====== ======
Basic earnings per share $0.16 0.12 0.17
Diluted earnings per share $0.16 0.12 0.17
Annualized return on average shareholders' equity 5.23% 3.90% 5.62%
Annualized return on average assets 0.76% 0.63% 0.83%
Basic common shares outstanding 93,675,589 108,337,001 96,918,016
Diluted common shares outstanding 93,972,187 108,848,189 97,124,328
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
Year ended
----------
December 31,
2011 2010
---- ----
Interest income:
Loans receivable $320,942 328,948
Mortgage-backed
securities 23,450 25,271
Taxable investment
securities 2,452 2,514
Tax-free
investment
securities 11,514 11,738
Interest-earning
deposits 1,712 2,097
Total interest
income 360,070 370,568
Interest expense:
Deposits 60,721 75,174
Borrowed funds 32,080 37,753
Total interest
expense 92,801 112,927
Net interest
income 267,269 257,641
Provision for loan losses 34,170 40,486
------ ------
Net interest
income after
provision
for loan losses 233,099 217,155
Noninterest income:
Impairment losses
on securities (1,782) (2,741)
Noncredit related
losses on
securities not
expected
to be sold
(recognized in
other
comprehensive
income) 845 1,193
--- -----
Net impairment
losses (937) (1,548)
Gain on sale of
investments, net 358 2,208
Service charges and
fees 35,378 37,921
Trust and other
financial services
income 8,125 7,252
Insurance
commission income 6,548 5,190
Loss on real estate
owned, net (2,426) (2,572)
Income from bank
owned life
insurance 6,019 5,080
Mortgage banking
income 858 2,196
Other operating
income 4,213 4,671
Total
noninterest
income 58,136 60,398
Noninterest expense:
Compensation and
employee benefits 106,595 100,709
Premises and
occupancy costs 23,055 22,665
Office operations 12,850 13,864
Processing expenses 23,332 23,152
Marketing expenses 9,953 9,875
Federal deposit
insurance premiums 7,101 9,054
Professional
services 5,224 2,728
Amortization of
intangible assets 1,819 2,784
Real estate owned
expense 1,625 2,901
Acquisition expense - 1,229
Other expense 8,673 7,547
Total
noninterest
expense 200,227 196,508
------- -------
Income before
income taxes 91,008 81,045
Income tax expense 26,857 23,522
Net income $64,151 57,523
======= ======
Basic earnings per share $0.64 0.53
Diluted earnings per share $0.64 0.53
Annualized return on average shareholders' equity 5.24% 4.40%
Annualized return on average assets 0.80% 0.71%
Basic common shares outstanding 99,801,783 108,308,834
Diluted common shares outstanding 100,177,564 108,931,377
Northwest Bancshares, Inc. and Subsidiaries
Asset Quality
(Dollars in thousands)
Three months ended Year ended
December 31, December 31,
------------ ------------
2011 2010 2011 2010
---- ---- ---- ----
Allowance for loan losses
Beginning balance $73,208 77,245 76,412 70,403
Provision 10,502 13,918 34,170 40,486
Charge-offs residential
mortgage (1,530) (2,550) (4,198) (4,497)
Charge-offs home equity (998) (1,146) (4,734) (4,104)
Charge-offs other consumer (1,467) (1,643) (5,283) (6,390)
Charge-offs commercial real
estate (4,288) (5,953) (12,508) (12,576)
Charge-offs commercial (4,935) (4,365) (15,641) (9,305)
Recoveries 646 906 2,920 2,395
Ending balance $71,138 76,412 71,138 76,412
Net charge-offs to
average loans, annualized 0.91% 1.06% 0.72% 0.63%
-------------------------- ---- ---- ---- ----
December 31,
------------
2011 2010 2009 2008
---- ---- ---- ----
Nonperforming loans $131,105 148,391 124,626 99,203
Real estate owned, net 26,887 20,780 20,257 16,844
------ ------ ------ ------
Nonperforming assets $157,992 169,171 144,883 116,047
======== ======= ======= =======
Non-accrual troubled debt
restructuring * $26,908 41,740 2,908 -
Accruing troubled debt
restructuring 39,854 10,865 18,177 -
------ ------ ------ ---
Total troubled debt
restructuring $66,762 52,605 21,085 -
======= ====== ====== ===
Nonperforming loans to
total loans 2.36% 2.68% 2.35% 1.91%
Nonperforming assets to
total assets 1.99% 2.08% 1.81% 1.67%
Allowance for loan losses
to total loans 1.28% 1.38% 1.33% 1.06%
Allowance for loan losses
to nonperforming loans 54.26% 51.49% 56.49% 55.37%
* Amounts included in
nonperforming loans
above.
---------------------
Northwest Bancshares, Inc. and Subsidiaries
Non-accrual loans delinquency
(Dollars in thousands)
December 31, December 31, December 31,
2011 2010 2009
---- ---- ----
Non-accrual loans
current:
Residential mortgage loans $ - - -
Home equity loans - - -
Other consumer loans - - -
Commercial real estate loans 13,057 7,378 -
Commercial loans 13,480 23,317 13,141
Total non-accrual
loans current $26,537 30,695 13,141
======= ====== ======
Non-accrual loans
delinquent 30 days to
59 days:
Residential mortgage loans $ - - -
Home equity loans - - -
Other consumer loans - - -
Commercial real estate loans 3,274 4,039 -
Commercial loans 90 1,465 -
Total non-accrual
loans delinquent 30
days to 59 days $3,364 5,504 -
====== ===== ===
Non-accrual loans
delinquent 60 days to
89 days:
Residential mortgage loans $ - - -
Home equity loans - - -
Other consumer loans - - -
Commercial real estate loans 1,560 10,923 1,705
Commercial loans 3,808 848 -
Total non-accrual
loans delinquent 60
days to 89 days $5,368 11,771 1,705
====== ====== =====
Non-accrual loans
delinquent 90 days or
more:
Residential mortgage loans $28,221 29,751 29,134
Home equity loans 9,560 10,263 10,008
Other consumer loans 2,667 2,565 2,775
Commercial real estate loans 44,603 44,965 49,594
Commercial loans 10,785 12,877 18,269
Total non- accrual
loans delinquent 90
days or more $95,836 100,421 109,780
======= ======= =======
Total non-accrual
loans $131,105 148,391 124,626
======== ======= =======
Northwest Bancshares, Inc. and Subsidiaries
Delinquency
(Dollars in thousands)
Loan delinquency schedule
(Number of loans and dollar amount of loans)
December 31,
------------
2011 * 2010 * 2009 *
---- ---- ----
Loans delinquent 30 days to 59 days:
Residential mortgage loans 427 $33,671 1.4% 427 $35,329 1.5% 343 $27,913 1.2%
Home equity loans 222 7,426 0.7% 230 7,317 0.7% 184 7,014 0.6%
Other consumer loans 903 4,854 2.0% 1,008 5,318 2.1% 923 4,297 1.6%
Commercial real estate loans 104 10,680 0.7% 82 16,287 1.2% 85 16,152 1.3%
Commercial loans 32 2,027 0.5% 48 6,590 1.5% 48 3,293 0.9%
--- --- ---- --- ---- --- ----
Total loans delinquent 30 days to 59 days 1,688 $58,658 1.1% 1,795 $70,841 1.3% 1,583 $58,669 1.1%
===== ======= === ===== ======= === ===== ======= ===
Loans delinquent 60 days to 89 days:
Residential mortgage loans 99 $8,629 0.4% 106 $9,848 0.4% 77 $6,657 0.3%
Home equity loans 47 1,953 0.2% 81 3,249 0.3% 52 1,719 0.2%
Other consumer loans 412 1,787 0.7% 356 1,331 0.5% 348 1,425 0.5%
Commercial real estate loans 38 3,122 0.2% 39 14,365 1.1% 35 5,811 0.5%
Commercial loans 25 4,958 1.3% 9 1,678 0.4% 26 2,474 0.7%
--- --- ---- --- ---- --- ----
Total loans delinquent 60 days to 89 days 621 $20,449 0.4% 591 $30,471 0.6% 538 $18,086 0.3%
=== ======= === === ======= === === ======= ===
Loans delinquent 90 days or more:
Residential mortgage loans 273 $28,221 1.2% 275 $29,751 1.2% 265 $29,134 1.2%
Home equity loans 177 9,560 0.9% 190 10,263 0.9% 195 10,008 0.9%
Other consumer loans 456 2,667 1.1% 374 2,565 1.0% 546 2,775 1.0%
Commercial real estate loans 131 44,603 3.1% 181 44,965 3.3% 199 49,594 4.0%
Commercial loans 66 10,785 2.8% 111 12,877 3.0% 124 18,269 4.9%
--- --- ---- --- ---- --- ----
Total loans delinquent 90 days or more 1,103 $95,836 1.7% 1,131 $100,421 1.8% 1,329 $109,780 2.1%
===== ======= === ===== ======== === ===== ======== ===
Total loans delinquent 3,412 $174,943 3.2% 3,517 $201,733 3.7% 3,450 $186,535 3.5%
===== ======== === ===== ======== === ===== ======== ===
* - Represents delinquency, in dollars, divided by the respective total amount of that class of loan outstanding.
Northwest Bancshares, Inc. and Subsidiaries
Analysis of loan portfolio by geographic location as of December 31, 2011:
(Dollars in thousands)
Loans outstanding:
------------------
Residential Mortgage (1) Home equity (2) Other consumer (3) Commercial real estate loans (4) Commercial loans (5) Total (6)
-------------------- ----------- -------------- ---------------------------- ---------------- -----
Pennsylvania $1,978,512 82.5% 925,368 85.3% 225,827 91.9% 849,702 59.2% 258,775 66.7% 4,238,184 76.3%
New York 159,389 6.6% 104,194 9.6% 11,191 4.6% 356,868 24.9% 56,128 14.5% 687,770 12.4%
Ohio 19,895 0.8% 11,677 1.1% 3,022 1.2% 35,882 2.5% 10,072 2.6% 80,548 1.5%
Maryland 168,247 7.0% 33,816 3.1% 1,417 0.6% 114,839 8.0% 25,942 6.7% 344,261 6.2%
Florida 27,551 1.1% 8,057 0.7% 1,473 0.6% 40,904 2.8% 17,340 4.5% 95,325 1.7%
All other 43,772 1.8% 1,674 0.2% 2,759 1.1% 37,572 2.6% 19,654 5.1% 105,431 1.9%
---- --- ---- --- ---- --- ---- --- ---- --- ----
Total $2,397,366 100.0% 1,084,786 100.0% 245,689 100.0% 1,435,767 100.0% 387,911 100.0% 5,551,519 100.0%
====== ===== ====== ===== ====== ===== ====== ===== ====== ===== ======
(1) - Percentage of total mortgage loans
(2) - Percentage of total home equity loans
(3) - Percentage of total other consumer loans
(4) - Percentage of total commercial real estate loans
(5) - Percentage of total commercial loans
(6) - Percentage of total loans
Loans 90 or more past due:
--------------------------
Residential Mortgage (7) Home equity (8) Other consumer (9) Commercial real estate loans (10) Commercial loans (11) Total (12)
-------------------- ----------- -------------- ---------------------------- ---------------- -----
Pennsylvania $16,971 0.9% 6,559 0.7% 2,537 1.1% 17,753 2.1% 5,075 2.0% 48,895 1.2%
New York 1,358 0.9% 1,031 1.0% 54 0.5% 8,625 2.4% 281 0.5% 11,349 1.7%
Ohio 305 1.5% 23 0.2% 23 0.8% 88 0.2% - 0.0% 439 0.5%
Maryland 4,436 2.6% 1,496 4.4% - 0.0% 6,573 5.7% 2,514 9.7% 15,019 4.4%
Florida 4,312 15.7% 422 5.2% 53 3.6% 4,407 10.8% 2,915 16.8% 12,109 12.7%
All other 839 1.9% 29 1.7% - 0.0% 7,157 19.0% - 0.0% 8,025 7.6%
--- --- --- --- --- --- ----- ---- --- --- -----
Total $28,221 1.2% 9,560 0.9% 2,667 1.1% 44,603 3.1% 10,785 2.8% 95,836 1.7%
==== === ==== === ==== === ==== === ==== === ====
(7) - Percentage of total mortgage loans in that geographic area
(8) - Percentage of total home equity loans in that geographic area
(9) - Percentage of total other consumer loans in that geographic area
(10) - Percentage of total commercial real estate loans in that geographic area
(11) - Percentage of total commercial loans in that geographic area
(12) - Percentage of total loans in that geographic area
Northwest Bancshares, Inc. and Subsidiaries
Investment Portfolio
(Dollars in thousands)
Marketable securities
available-for-sale
as of December 31,
2011:
---------------------
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 $59 - - 59
Debt issued by
government sponsored
enterprises:
Due in one year - five years 36,295 134 - 36,429
Due in five years -ten
years 29,557 638 (61) 30,134
Due after ten years 9,665 - (49) 9,616
Equity securities 12,080 644 (259) 12,465
Municipal securities:
Due in one year - five years 10,633 291 - 10,924
Due in five years -ten
years 27,817 1,336 - 29,153
Due after ten years 124,041 5,350 (180) 129,211
Corporate trust
preferred securities:
Due in one year or less 500 - - 500
Due after ten years 25,036 233 (4,635) 20,634
Mortgage-backed
securities:
Fixed rate pass-through 110,364 8,201 (1) 118,564
Variable rate pass-through 135,103 6,679 (4) 141,778
Fixed rate non-agency CMO 9,521 188 (735) 8,974
Fixed rate agency CMO 112,670 3,466 - 116,136
Variable rate non-agency CMO 1,104 - (154) 950
Variable rate agency CMO 240,963 1,991 (132) 242,822
Total mortgage-backed
securities 609,725 20,525 (1,026) 629,224
Total marketable securities
available-for-sale $885,408 29,151 (6,210) 908,349
Marketable securities
held-to-maturity as
of December 31, 2011:
----------------------
Gross Gross
unrealized unrealized
Amortized holding holding Market
cost gains losses value
---- ----- ------ -----
Municipal securities:
Due in five years -ten
years 3,677 174 - 3,851
Due after ten years 71,015 3,615 - 74,630
Mortgage-backed
securities:
Fixed rate pass-through 24,160 1,099 - 25,259
Variable rate pass-through 9,066 94 - 9,160
Fixed rate agency CMO 108,881 2,761 - 111,642
Variable rate agency CMO 14,590 280 - 14,870
Total mortgage-backed
securities 156,697 4,234 - 160,931
Total marketable securities
held-to-maturity $231,389 8,023 - 239,412
Issuers of mortgage-
backed securities as
of December 31, 2011:
----------------------
Fannie Mae $324,439 11,487 (73) 335,853
Ginnie Mae 139,901 4,050 - 143,951
Freddie Mac 272,095 9,034 (51) 281,078
SBA 18,637 - (13) 18,624
Non-agency 11,350 188 (889) 10,649
Total $766,422 24,759 (1,026) 790,155
Northwest Bancshares, Inc. and Subsidiaries
Investment Portfolio - Continued
(Dollars in thousands)
Book As a %
Value of Book
12/31/2011 Value
---------- -----
Municipal
securities by
state:
Pennsylvania
School district $114,699 48.4%
General obligation 41,766 17.6%
Revenue bonds 4,709 2.0%
Total Pennsylvania 161,174 68.0%
New York 33,679 14.2%
Ohio 6,426 2.7%
All other states 35,904 15.1%
$237,183
========
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 December 31,
2011 2010
---- ----
Average Interest Avg. Average Interest Avg.
Balance (h) Yield/ Balance (h) Yield/
Cost Cost
---- ----
Assets:
-------
Interest-earning assets:
Loans receivable (a)
(b) (d) $5,544,194 80,395 5.79% 5,565,989 83,491 5.99%
Mortgage-backed
securities (c) 797,071 5,077 2.55% 879,958 5,886 2.68%
Investment
securities (c) (d) 376,545 4,776 5.07% 365,003 5,213 5.71%
FHLB stock 49,775 - - 61,042 - -
Other interest-
earning deposits 615,906 423 0.27% 721,174 496 0.27%
------- --- ------- ---
Total interest-
earning assets 7,383,491 90,671 4.90% 7,593,166 95,086 5.00%
Noninterest earning
assets (e) 571,873 588,945
------- -------
Total assets $7,955,364 8,182,111
========== =========
Liabilities and shareholders' equity:
-----------------------------------
Interest-bearing liabilities:
Savings accounts $1,064,533 1,139 0.42% 1,058,373 1,695 0.64%
Interest-bearing
demand accounts 787,674 238 0.12% 786,488 249 0.13%
Money market
accounts 959,378 1,013 0.42% 906,414 1,209 0.53%
Certificate accounts 2,308,440 11,837 2.03% 2,456,893 13,872 2.24%
Borrowed funds (f) 836,948 6,604 3.13% 892,461 7,326 3.26%
Junior subordinated
debentures 103,094 1,437 5.45% 103,094 1,436 5.45%
------- ----- ------- -----
Total interest-
bearing liabilities 6,060,067 22,268 1.46% 6,203,723 25,787 1.65%
Noninterest bearing
liabilities (g) 734,898 671,412
------- -------
Total liabilities 6,794,965 6,875,135
Shareholders' equity 1,160,399 1,306,976
--------- ---------
Total liabilities
and shareholders'
equity $7,955,364 8,182,111
========== =========
Net interest income/ Interest rate spread 68,403 3.44% 69,299 3.35%
Net interest-
earning assets/
Net interest margin $1,323,424 3.71% 1,389,443 3.65%
Ratio of interest-earning assets to
interest-bearing
liabilities 1.22X 1.22X
---------------- ----- -----
(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.
(g) Average balances include non-interest bearing demand deposits (checking accounts).
(h) Shown on a FTE basis. GAAP basis yields were: Loans - 5.76% and 5.96%, respectively, Investment securities - 3.59% and 3.88%, respectively,
Interest-earning assets - 4.80% and 4.89%, respectively. GAAP basis net interest rate spreads were 3.34% and 3.24%, respectively,
and GAAP basis net interest margins were 3.60% and 3.54%, respectively.
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.
Year ended December 31,
2011 2010
---- ----
Average Interest Avg. Average Interest Avg.
Balance (h) Yield/ Balance (h) Yield/
Cost Cost
---- ----
Assets:
-------
Interest-earning assets:
Loans receivable (a)
(b) (d) $5,508,790 322,656 5.85% 5,487,645 330,431 6.03%
Mortgage-backed
securities (c) 874,366 23,450 2.68% 816,182 25,271 3.10%
Investment
securities (c) (d) 384,389 20,166 5.25% 369,858 20,572 5.56%
FHLB stock 53,985 - - 62,688 - -
Other interest-
earning deposits 665,074 1,712 0.25% 805,161 2,097 0.26%
------- ----- ------- -----
Total interest-
earning assets 7,486,604 367,984 4.91% 7,541,534 378,371 5.02%
Noninterest earning
assets (e) 570,888 578,317
------- -------
Total assets $8,057,492 8,119,851
========== =========
Liabilities and shareholders' equity:
-----------------------------------
Interest-bearing liabilities:
Savings accounts $1,075,890 5,000 0.46% 1,031,362 8,166 0.79%
Interest-bearing
demand accounts 793,287 960 0.12% 776,091 1,211 0.16%
Money market
accounts 939,317 4,243 0.45% 888,081 5,977 0.67%
Certificate accounts 2,362,313 50,518 2.14% 2,483,481 59,820 2.41%
Borrowed funds (f) 841,748 26,381 3.13% 896,843 32,054 3.57%
Junior subordinated
debentures 103,094 5,699 5.45% 103,094 5,699 5.45%
------- ----- ------- -----
Total interest-
bearing liabilities 6,115,649 92,801 1.52% 6,178,952 112,927 1.83%
Noninterest bearing
liabilities (g) 718,434 634,119
------- -------
Total liabilities 6,834,083 6,813,071
Shareholders' equity 1,223,409 1,306,780
--------- ---------
Total liabilities
and shareholders'
equity $8,057,492 8,119,851
========== =========
Net interest income/ Interest rate spread 275,183 3.39% 265,444 3.19%
Net interest-
earning assets/
Net interest margin $1,370,955 3.68% 1,362,582 3.52%
Ratio of interest-earning assets to
interest-bearing
liabilities 1.22X 1.22X
---------------- ----- -----
(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.
(g) Average balances include non-interest bearing demand deposits (checking accounts).
(h) Shown on a FTE basis. GAAP basis yields were: Loans - 5.82% and 6.00%, respectively, Investment securities - 3.63% and 3.85%, respectively,
Interest-earning assets - 4.80% and 4.92%, respectively. GAAP basis net interest rate spreads were 3.29% and 3.09%, respectively,
and GAAP basis net interest margins were 3.57% and 3.42%, respectively.
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 Three months ended
December 31, 2011 September 30, 2011
----------------- ------------------
Average Interest Avg. Average Interest Avg.
Balance (h) Yield/ Balance (h) Yield/
Cost Cost
---- ----
Assets:
-------
Interest-earning assets:
Loans receivable (a)
(b) (d) $5,544,194 80,395 5.79% 5,490,795 81,025 5.86%
Mortgage-backed
securities (c) 797,071 5,077 2.55% 857,898 5,544 2.58%
Investment
securities (c) (d) 376,545 4,776 5.07% 412,927 5,066 4.91%
FHLB stock 49,775 - - 52,336 - -
Other interest-
earning deposits 615,906 423 0.27% 652,958 393 0.24%
------- --- ------- ---
Total interest-
earning assets 7,383,491 90,671 4.90% 7,466,914 92,028 4.90%
Noninterest earning
assets (e) 571,873 560,951
------- -------
Total assets $7,955,364 8,027,865
========== =========
Liabilities and shareholders' equity:
-----------------------------------
Interest-bearing liabilities:
Savings accounts $1,064,533 1,139 0.42% 1,081,721 1,157 0.42%
Interest-bearing
demand accounts 787,674 238 0.12% 798,424 244 0.12%
Money market
accounts 959,378 1,013 0.42% 950,113 1,016 0.42%
Certificate accounts 2,308,440 11,837 2.03% 2,338,436 12,541 2.13%
Borrowed funds (f) 836,948 6,604 3.13% 840,560 6,625 3.13%
Junior subordinated
debentures 103,094 1,437 5.45% 103,094 1,436 5.45%
------- ----- ------- -----
Total interest-
bearing liabilities 6,060,067 22,268 1.46% 6,112,348 23,019 1.49%
Noninterest bearing
liabilities (g) 734,898 726,173
------- -------
Total liabilities 6,794,965 6,838,521
Shareholders' equity 1,160,399 1,189,344
--------- ---------
Total liabilities
and shareholders'
equity $7,955,364 8,027,865
========== =========
Net interest income/ Interest rate spread 68,403 3.44% 69,009 3.41%
Net interest-
earning assets/
Net interest margin $1,323,424 3.71% 1,354,566 3.70%
Ratio of interest-earning assets to
interest-bearing
liabilities 1.22X 1.22X
---------------- ----- -----
(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.
(g) Average balances include non-interest bearing demand deposits (checking accounts).
(h) Shown on a FTE basis. GAAP basis yields were: Loans - 5.76% and 5.82%, respectively, Investment securities - 3.59% and 3.42%, respectively,
Interest-earning assets - 4.80% and 4.79%, respectively. GAAP basis net interest rate spreads were 3.34% and 3.29%, respectively,
and GAAP basis net interest margins were 3.60% and 3.59%, respectively.
SOURCE Northwest Bancshares, Inc.
