WARREN, Pa., April 21, 2014 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended March 31, 2014 of $14.6 million, or $0.16 per diluted share. This represents a decrease of $658,000, or 4.3%, over the same quarter last year when net income was $15.3 million, or $0.17 per diluted share, and a decrease of $5.8 million, or 28.1%, compared to the quarter ended December 31, 2013 when net income was $20.4 million, or $0.22 per diluted share. The annualized returns on average shareholders' equity and average assets for the current quarter were 5.16% and 0.75% compared to 5.45% and 0.78% for the same quarter last year and 7.06% and 1.02% for the quarter ended December 31, 2013.
The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.13 per share in addition to the $1.00 special dividend announced on April 14, 2014. Both dividends are payable on May 15, 2014, to shareholders of record as of May 1, 2014 with an ex-dividend date, as established by Nasdaq, of April 29, 2014. This represents the 78th consecutive quarter in which the Company has paid a cash dividend.
In making this announcement, William J. Wagner, President and CEO, noted, "Our operating results for the first quarter did not meet our expectations due primarily to the deterioration of two commercial loans. However, core earnings remained relatively consistent with little change in our net interest margin during the quarter, a 6.3% increase in fee-based income from a year ago and a 3.3% year-over-year increase in operating expense. Market reaction to the $1.00 per share special dividend has been positive. We are hopeful that the significant increase in the market value of our shares that followed the announcement will enable Northwest to achieve greater success in pursuing mergers and acquisitions that are beneficial to our shareholders. Finally, we were pleased to learn that Forbes named our company to its list of America's 50 Most Trustworthy Financial Companies."
Net interest income decreased by $3.1 million, or 4.8%, to $60.9 million for the quarter ended March 31, 2014, from $64.0 million for the quarter ended March 31, 2013, as decreases in interest income on loans receivable and investment securities of $3.6 million and $881,000, respectively, were partially offset by a $1.3 million decrease in interest paid on deposit accounts. These changes from the previous year were due primarily to the continued low level of market interest rates.
The provision for loan losses increased by $327,000, or 4.6%, to $7.5 million for the quarter ended March 31, 2014, from $7.2 million for the quarter ended March 31, 2013 and increased by $6.5 million compared to the quarter ended December 31, 2013. This increase is due primarily to two commercial loans requiring reserves of $4.9 million and $1.2 million, respectively. Had it not been for these two extraordinary items, the quarterly provision would have been significantly less as asset quality has improved greatly with loans 90 days or more delinquent decreasing $21.2 million, or 29.2%, from a year ago. At March 31, 2014, the allowance for loan losses was $76.2 million, or 1.30% of total loans, compared to $72.0 million, or 1.28% of total loans, at March 31, 2013. Net charge-offs were $2.6 million, or 0.18% of average loans for the quarter ended March 31, 2014 compared to $8.4 million, or 0.59% for the same quarter last year.
Noninterest income increased by $3.3 million, or 20.0%, to $19.7 million for the quarter ended March 31, 2014, from $16.4 million for the quarter ended March 31, 2013. This increase is due primarily to a $3.2 million increase in the gain on sale of investments. Additionally, trust and other financial services income increased by $843,000, due primarily to our acquisition of Evans Capital Management, Inc. as of January 1, 2014. Partially offsetting these increases was a decrease in mortgage banking income of $707,000, due primarily to the retention of the residential mortgage loans that we originated during the current quarter.
Noninterest expense increased by $1.7 million, or 3.3%, to $53.2 million for the quarter ended March 31, 2014, from $51.5 million for the quarter ended March 31, 2013. This increase was due primarily to a $736,000 increase in processing expense as the result of software upgrades. Additionally, office operations increased by $489,000, due primarily to increased collections costs. Partially offsetting these increases was a decrease in marketing expense of $263,000, which was due to the timing of various campaigns in the current and prior year.
Our effective tax rate of 26.5% during the quarter ended March 31, 2014 is reflective of the expected lower annual tax rate due primarily to the deductibility of dividends paid on the Company's stock held in our Employee Stock Ownership Plan and 401(k) plan.
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 165 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. Additional information regarding Northwest Bancshares, Inc. 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) |
|
|
|
|
|
|
|
|
|
| March 31, |
| December 31, |
Assets |
| 2014 |
| 2013 |
Cash and cash equivalents |
|
|
| $ 81,927 |
| 98,122 |
Interest-earning deposits in other financial institutions |
| 379,765 |
| 293,149 |
Federal funds sold and other short-term investments |
| 634 |
| 634 |
Marketable securities available-for-sale (amortized cost of $1,008,975 and $1,022,078) | 1,009,717 |
| 1,016,767 |
Marketable securities held-to-maturity (fair value of $120,933 and $124,061) | 117,724 |
| 121,366 |
| Total cash, interest-earning deposits and marketable securities | 1,589,767 |
| 1,530,038 |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans held for sale |
|
| - |
| 221 |
Residential mortgage loans |
|
|
| 2,485,688 |
| 2,482,783 |
Home equity loans |
|
|
|
|
| 1,065,988 |
| 1,083,939 |
Other consumer loans |
|
|
|
| 223,045 |
| 228,348 |
Commercial real estate loans |
|
| 1,664,255 |
| 1,608,399 |
Commercial loans |
|
|
|
|
| 412,098 |
| 402,601 |
| Total loans receivable |
|
|
| 5,851,074 |
| 5,806,291 |
Allowance for loan losses |
|
|
| (76,234) |
| (71,348) |
| Loans receivable, net |
|
|
| 5,774,840 |
| 5,734,943 |
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank stock, at cost |
|
| 43,714 |
| 43,715 |
Accrued interest receivable |
|
|
| 22,188 |
| 21,821 |
Real estate owned, net |
|
|
|
| 16,692 |
| 18,203 |
Premises and Equipment, net |
|
| 146,880 |
| 146,139 |
Bank owned life insurance |
|
|
| 141,173 |
| 140,172 |
Goodwill |
|
|
|
|
| 175,988 |
| 174,463 |
Other intangible assets |
|
|
|
| 4,025 |
| 2,319 |
Other assets |
|
|
|
|
| 59,693 |
| 69,663 |
| Total assets |
|
|
|
|
| $ 7,974,960 |
| 7,881,476 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' equity |
|
|
|
|
Liabilities |
|
|
|
|
Noninterest-bearing demand deposits |
|
| $ 844,743 |
| 789,135 |
Interest-bearing demand deposits |
|
| 890,788 |
| 852,809 |
Money market deposit accounts |
|
| 1,176,462 |
| 1,167,954 |
Savings deposits |
|
|
|
|
| 1,236,130 |
| 1,191,584 |
Time deposits |
|
|
|
|
| 1,626,740 |
| 1,667,397 |
| Total deposits |
|
|
|
|
| 5,774,863 |
| 5,668,879 |
Borrowed funds |
|
|
|
|
| 865,621 |
| 881,645 |
Advances by borrowers for taxes and insurance |
| 31,074 |
| 26,669 |
Accrued interest payable |
|
|
| 860 |
| 888 |
Other liabilities |
|
|
|
|
| 41,892 |
| 43,499 |
Junior subordinated debentures |
|
| 103,094 |
| 103,094 |
| Total liabilities |
|
|
|
|
| 6,817,404 |
| 6,724,674 |
|
|
|
|
|
|
|
|
|
|
|
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, 94,464,430 shares and 94,243,713 shares issued and outstanding, respectively |
|
|
|
945 |
| 943 |
Paid-in-capital |
|
|
|
|
| 622,758 |
| 619,678 |
Retained earnings |
|
|
|
|
| 564,580 |
| 571,164 |
Unallocated common stock of Employee Stock Ownership Plan |
| (22,632) |
| (23,083) |
Accumulated other comprehensive loss |
|
| (8,095) |
| (11,900) |
| Total shareholders' equity |
|
| 1,157,556 |
| 1,156,802 |
| Total liabilities and shareholders' equity |
|
| $ 7,974,960 |
| 7,881,476 |
|
|
|
|
|
|
|
|
|
|
|
| Equity to assets |
| 14.51% |
| 14.68% |
|
| Tangible common equity to assets | 12.54% |
| 12.72% |
|
| Book value per share | $ 12.25 |
| 12.27 |
|
| Tangible book value per share | $ 10.35 |
| 10.40 |
|
| Closing market price per share | $ 14.60 |
| 14.78 |
|
| Full time equivalent employees | 2,050 |
| 2,043 |
|
| Number of banking offices | 165 |
| 165 |
|
|
|
|
|
|
|
|
|
|
|
Northwest Bancshares, Inc. and Subsidiaries |
Consolidated Statements of Income |
(Dollars in thousands, except per share amounts) |
|
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|
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|
|
|
|
|
| Quarter ended |
|
|
|
|
| March 31, |
| December 31, |
|
|
|
|
| 2014 |
| 2013 |
| 2013 |
Interest income: |
|
|
|
|
|
|
| Loans receivable |
| $ 69,373 |
| 72,973 |
| 70,849 |
| Mortgage-backed securities |
| 2,793 |
| 3,441 |
| 2,956 |
| Taxable investment securities |
| 1,080 |
| 905 |
| 1,052 |
| Tax-free investment securities |
| 1,655 |
| 2,063 |
| 1,748 |
| Interest-earning deposits |
| 200 |
| 251 |
| 249 |
|
| Total interest income |
| 75,101 |
| 79,633 |
| 76,854 |
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
| Deposits |
| 6,490 |
| 7,814 |
| 6,911 |
| Borrowed funds |
| 7,714 |
| 7,831 |
| 7,894 |
|
| Total interest expense |
| 14,204 |
| 15,645 |
| 14,805 |
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
| 60,897 |
| 63,988 |
| 62,049 |
Provision for loan losses |
| 7,485 |
| 7,158 |
| 964 |
|
| Net interest income after provision |
|
|
|
|
|
|
|
| for loan losses |
| 53,412 |
| 56,830 |
| 61,085 |
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
| Impairment losses on securities |
| - |
| - |
| (713) |
| Noncredit related losses on securities not expected |
|
|
|
|
|
|
|
| to be sold (recognized in other comprehensive income) | - |
| - |
| - |
| Net impairment losses |
| - |
| - |
| (713) |
| Gain on sale of investments, net |
| 3,348 |
| 101 |
| 5,889 |
| Service charges and fees |
| 8,408 |
| 8,691 |
| 8,874 |
| Trust and other financial services income |
| 3,047 |
| 2,204 |
| 2,483 |
| Insurance commission income |
| 2,564 |
| 2,295 |
| 2,131 |
| Loss on real estate owned, net |
| (135) |
| (130) |
| (660) |
| Income from bank owned life insurance |
| 1,001 |
| 1,085 |
| 1,846 |
| Mortgage banking income |
| 249 |
| 956 |
| 228 |
| Other operating income |
| 1,175 |
| 1,176 |
| 869 |
|
| Total noninterest income |
| 19,657 |
| 16,378 |
| 20,947 |
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
| Compensation and employee benefits |
| 27,972 |
| 27,930 |
| 28,475 |
| Premises and occupancy costs |
| 6,557 |
| 6,153 |
| 5,652 |
| Office operations |
| 3,757 |
| 3,268 |
| 3,823 |
| Processing expenses |
| 6,589 |
| 5,853 |
| 6,269 |
| Marketing expenses |
| 1,637 |
| 1,900 |
| 1,259 |
| Federal deposit insurance premiums |
| 1,297 |
| 1,438 |
| 1,361 |
| Professional services |
| 2,062 |
| 1,693 |
| 2,044 |
| Amortization of intangible assets |
| 331 |
| 348 |
| 222 |
| Real estate owned expense |
| 639 |
| 599 |
| 557 |
| Other expense |
| 2,322 |
| 2,289 |
| 2,918 |
|
| Total noninterest expense |
| 53,163 |
| 51,471 |
| 52,580 |
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
| 19,906 |
| 21,737 |
| 29,452 |
| Income tax expense |
| 5,266 |
| 6,439 |
| 9,089 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
| $ 14,640 |
| 15,298 |
| 20,363 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
| $ 0.16 |
| 0.17 |
| 0.22 |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
| $ 0.16 |
| 0.17 |
| 0.22 |
|
|
|
|
|
|
|
|
|
|
Annualized return on average equity |
| 5.16% |
| 5.45% |
| 7.06% |
Annualized return on average assets |
| 0.75% |
| 0.78% |
| 1.02% |
|
|
|
|
|
|
|
|
|
|
Basic common shares outstanding |
| 91,154,998 |
| 90,403,909 |
| 90,864,076 |
Diluted common shares outstanding |
| 92,353,312 |
| 90,878,903 |
| 92,245,167 |
|
|
|
|
|
|
|
|
|
|
Northwest Bancshares, Inc. and Subsidiaries |
|
Asset quality |
|
(Dollars in thousands) |
|
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|
|
| March 31,
2014 |
| December 31,
2013 |
| March 31,
2013 |
| December 31,
2012 |
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|
|
Non-accrual loans current: |
|
|
|
|
|
|
|
|
| Residential mortgage loans | $ 1,064 |
| 1,361 |
| 1,728 |
| 797 |
|
| Home equity loans | 1,771 |
| 835 |
| 1,050 |
| 635 |
|
| Other consumer loans | 136 |
| 98 |
| 87 |
| 44 |
|
| Commercial real estate loans | 26,564 |
| 17,866 |
| 25,203 |
| 24,960 |
|
| Commercial loans | 19,603 |
| 13,357 |
| 9,069 |
| 5,424 |
|
Total non-accrual loans current | $ 49,138 |
| 33,517 |
| 37,137 |
| 31,860 |
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans delinquent 30 days to 59 days: |
|
|
|
|
|
|
|
|
| Residential mortgage loans | $ 741 |
| 427 |
| 1,789 |
| - |
|
| Home equity loans | 155 |
| 404 |
| 222 |
| - |
|
| Other consumer loans | 36 |
| 15 |
| 26 |
| - |
|
| Commercial real estate loans | 4,118 |
| 3,468 |
| 5,105 |
| 5,549 |
|
| Commercial loans | 5 |
| 7,650 |
| 2,631 |
| 2,002 |
|
Total non-accrual loans delinquent 30 days to 59 days | $ 5,055 |
| 11,964 |
| 9,773 |
| 7,551 |
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans delinquent 60 days to 89 days: |
|
|
|
|
|
|
|
|
| Residential mortgage loans | $ 1,914 |
| 864 |
| 1,969 |
| - |
|
| Home equity loans | 485 |
| 280 |
| 330 |
| - |
|
| Other consumer loans | 99 |
| 87 |
| 74 |
| - |
|
| Commercial real estate loans | 902 |
| 2,036 |
| 2,506 |
| 2,802 |
|
| Commercial loans | 95 |
| 716 |
| 1,318 |
| 9,652 |
|
Total non-accrual loans delinquent 60 days to 89 days | $ 3,495 |
| 3,983 |
| 6,197 |
| 12,454 |
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans delinquent 90 days or more: |
|
|
|
|
|
|
|
|
| Residential mortgage loans | $ 20,564 |
| 24,625 |
| 24,416 |
| 24,286 |
|
| Home equity loans | 8,420 |
| 8,344 |
| 7,967 |
| 8,479 |
|
| Other consumer loans | 1,818 |
| 2,057 |
| 1,802 |
| 1,936 |
|
| Commercial real estate loans | 16,098 |
| 18,433 |
| 22,204 |
| 24,550 |
|
| Commercial loans | 4,494 |
| 4,298 |
| 16,246 |
| 9,096 |
|
Total non- accrual loans delinquent 90 days or more | $ 51,394 |
| 57,757 |
| 72,635 |
| 68,347 |
|
|
|
|
|
|
|
|
|
|
|
Total non-accrual loans | $ 109,082 |
| 107,221 |
| 125,742 |
| 120,212 |
|
|
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|
|
|
|
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|
|
| March 31, |
| December 31, |
| March 31, |
| December 31, |
|
|
| 2014 |
| 2013 |
| 2013 |
| 2012 |
|
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|
|
|
|
|
|
|
|
Non-accrual loans | $ 109,082 |
| 107,221 |
| 125,742 |
| 120,212 |
|
Loans 90 days past maturity and still accruing | 709 |
| 690 |
| 781 |
| 1,698 |
|
Nonperforming loans | 109,791 |
| 107,911 |
| 126,523 |
| 121,910 |
|
Real estate owned, net | 16,692 |
| 18,203 |
| 24,035 |
| 26,165 |
|
Nonperforming assets | $ 126,483 |
| 126,114 |
| 150,558 |
| 148,075 |
|
|
|
|
|
|
|
|
|
|
|
Non-accrual troubled debt restructuring * | $ 34,268 |
| 28,889 |
| 46,109 |
| 41,166 |
|
Accruing troubled debt restructuring | 40,243 |
| 50,277 |
| 45,256 |
| 48,278 |
|
Total troubled debt restructuring | $ 74,511 |
| 79,166 |
| 91,365 |
| 89,444 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans | 1.88% |
| 1.86% |
| 2.26% |
| 2.14% |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets | 1.59% |
| 1.60% |
| 1.88% |
| 1.86% |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans | 1.30% |
| 1.23% |
| 1.28% |
| 1.28% |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to nonperforming loans | 69.44% |
| 66.12% |
| 56.91% |
| 60.06% |
|
|
|
|
|
|
|
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|
|
|
* Amounts included in nonperforming loans above. |
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Northwest Bancshares, Inc. and Subsidiaries |
Delinquency |
(Dollars in thousands) |
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Loan delinquency schedule |
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| (Number of loans and dollar amount of loans) |
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| March 31, |
| December 31, |
| March 31, |
| December 31, |
|
| 2014 | * |
| 2013 | * |
| 2013 | * |
| 2012 | * |
Loans delinquent 30 days to 59 days: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Residential mortgage loans | 352 | $ 26,874 | 1.1% |
| 374 | $ 27,486 | 1.1% |
| 410 | $ 33,054 | 1.4% |
| 430 | $ 32,921 | 1.4% |
| Home equity loans | 172 | 5,449 | 0.5% |
| 213 | 6,946 | 0.6% |
| 204 | 6,254 | 0.6% |
| 224 | 6,534 | 0.6% |
| Consumer loans | 749 | 3,412 | 1.5% |
| 1,010 | 4,515 | 2.0% |
| 789 | 3,684 | 1.7% |
| 1,122 | 5,456 | 2.4% |
| Commercial real estate loans | 84 | 26,518 | 1.6% |
| 73 | 8,449 | 0.5% |
| 93 | 12,833 | 0.8% |
| 87 | 13,001 | 0.8% |
| Commercial loans | 41 | 1,375 | 0.3% |
| 34 | 9,243 | 2.3% |
| 49 | 4,620 | 1.2% |
| 41 | 3,233 | 0.8% |
Total loans delinquent 30 days to 59 days | 1,398 | $ 63,628 | 1.1% |
| 1,704 | $ 56,639 | 1.0% |
| 1,545 | 60,445 | 1.1% |
| 1,904 | $ 61,145 | 1.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60 days to 89 days: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Residential mortgage loans | 46 | $ 3,674 | 0.1% |
| 103 | $ 7,568 | 0.3% |
| 54 | $ 4,577 | 0.2% |
| 100 | $ 9,387 | 0.4% |
| Home equity loans | 42 | 1,437 | 0.1% |
| 67 | 2,243 | 0.2% |
| 67 | 2,321 | 0.2% |
| 65 | 1,977 | 0.2% |
| Consumer loans | 330 | 1,289 | 0.6% |
| 507 | 1,866 | 0.8% |
| 302 | 1,145 | 0.5% |
| 448 | 1,830 | 0.8% |
| Commercial real estate loans | 33 | 2,570 | 0.2% |
| 35 | 3,968 | 0.2% |
| 32 | 4,448 | 0.3% |
| 33 | 4,596 | 0.3% |
| Commercial loans | 9 | 473 | 0.1% |
| 16 | 1,555 | 0.4% |
| 19 | 1,654 | 0.4% |
| 17 | 10,158 | 2.6% |
Total loans delinquent 60 days to 89 days | 460 | $ 9,443 | 0.2% |
| 728 | $ 17,200 | 0.3% |
| 474 | 14,145 | 0.3% |
| 663 | $ 27,948 | 0.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90 days or more: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Residential mortgage loans | 236 | $ 20,564 | 0.8% |
| 273 | $ 24,625 | 1.0% |
| 233 | $ 24,416 | 1.0% |
| 266 | $ 24,286 | 1.0% |
| Home equity loans | 176 | 8,420 | 0.8% |
| 171 | 8,344 | 0.8% |
| 179 | 7,967 | 0.8% |
| 175 | 8,479 | 0.8% |
| Consumer loans | 391 | 1,818 | 0.8% |
| 470 | 2,057 | 0.9% |
| 374 | 1,802 | 0.8% |
| 427 | 1,936 | 0.8% |
| Commercial real estate loans | 116 | 16,098 | 1.0% |
| 124 | 18,433 | 1.1% |
| 127 | 22,204 | 1.4% |
| 146 | 24,550 | 1.5% |
| Commercial loans | 33 | 4,494 | 1.1% |
| 31 | 4,298 | 1.1% |
| 51 | 16,246 | 4.1% |
| 61 | 9,096 | 2.3% |
Total loans delinquent 90 days or more | 952 | $ 51,394 | 0.9% |
| 1,069 | $ 57,757 | 1.0% |
| 964 | 72,635 | 1.3% |
| 1,075 | $ 68,347 | 1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans delinquent | 2,810 | $124,465 | 2.1% |
| 3,501 | $131,596 | 2.3% |
| 2,983 | $147,225 | 2.6% |
| 3,642 | $157,440 | 2.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * - 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 March 31, 2014 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Recorded |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| investment |
|
|
|
|
|
|
| Special |
|
|
|
|
|
|
| in loans |
|
|
|
|
| Pass |
| mention |
| Substandard |
| Doubtful |
| Loss |
| receivable |
|
Personal Banking: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Residential mortgage loans | $ 2,469,561 |
| - |
| 14,649 |
| - |
| 1,478 |
| 2,485,688 |
|
|
| Home equity loans |
| 1,057,568 |
| - |
| 8,420 |
| - |
| - |
| 1,065,988 |
|
|
| Other consumer loans |
| 221,776 |
| - |
| 1,269 |
| - |
| - |
| 223,045 |
|
| Total Personal Banking |
| 3,748,905 |
| - |
| 24,338 |
| - |
| 1,478 |
| 3,774,721 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Banking: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial real estate loans | 1,456,037 |
| 54,004 |
| 151,248 |
| 2,966 |
| - |
| 1,664,255 |
|
|
| Commercial loans |
| 357,778 |
| 11,987 |
| 33,515 |
| 8,818 |
| - |
| 412,098 |
|
| Total Business Banking |
| 1,813,815 |
| 65,991 |
| 184,763 |
| 11,784 |
| - |
| 2,076,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ 5,562,720 |
| 65,991 |
| 209,101 |
| 11,784 |
| 1,478 |
| 5,851,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
| Year ended |
|
| March 31, |
| December 31, |
|
| 2014 |
| 2013 |
| 2013 |
| 2012 |
Allowance for loan losses |
|
|
|
|
|
|
|
| Beginning balance | $ 71,348 |
| 73,219 |
| 73,219 |
| 71,138 |
| Provision | 7,485 |
| 7,158 |
| 18,519 |
| 26,338 |
| Charge-offs residential mortgage | (459) |
| (679) |
| (2,501) |
| (4,295) |
| Charge-offs home equity | (372) |
| (370) |
| (2,239) |
| (4,066) |
| Charge-offs other consumer | (1,716) |
| (1,404) |
| (6,055) |
| (5,919) |
| Charge-offs commercial real estate | (932) |
| (3,990) |
| (10,042) |
| (9,919) |
| Charge-offs commercial | (770) |
| (2,680) |
| (5,007) |
| (6,254) |
| Recoveries | 1,650 |
| 755 |
| 5,454 |
| 6,196 |
| Ending balance | $ 76,234 |
| 72,009 |
| 71,348 |
| 73,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to average loans, annualized | 0.18% |
| 0.59% |
| 0.36% |
| 0.43% |
|
|
|
|
|
|
|
|
|
Northwest Bancshares, Inc. and Subsidiaries |
Municipal securities portfolio |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
| March 31, 2014 |
| As a % of |
|
|
| Market |
| Amortized |
| Unrealized |
| amortized |
|
|
| value |
| cost |
| gain/ (loss) |
| cost |
Municipal securities by state: |
|
|
|
|
|
|
|
| Pennsylvania |
|
|
|
|
|
|
|
|
| School districts | $ 74,904 |
| 73,474 |
| 1,430 |
| 46.7% |
|
| General obligations | 28,986 |
| 28,267 |
| 719 |
| 18.0% |
|
| Revenue bonds | 1,080 |
| 1,080 |
| - |
| 0.7% |
| Total Pennsylvania | 104,970 |
| 102,821 |
| 2,149 |
| 65.4% |
| New York | 15,924 |
| 15,668 |
| 256 |
| 10.0% |
| Ohio | 6,183 |
| 5,976 |
| 207 |
| 3.7% |
| All other states | 34,252 |
| 32,837 |
| 1,415 |
| 20.9% |
|
|
| $ 161,329 |
| 157,302 |
| 4,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, 2013 |
| As a % of |
|
|
| Market |
| Amortized |
| Unrealized |
| amortized |
|
|
| value |
| cost |
| gain |
| cost |
Municipal securities by state: |
|
|
|
|
|
|
|
| Pennsylvania |
|
|
|
|
|
|
|
|
| School districts | $ 76,736 |
| 75,767 |
| 969 |
| 47.1% |
|
| General obligations | 28,745 |
| 28,264 |
| 481 |
| 17.6% |
|
| Revenue bonds | 1,071 |
| 1,080 |
| (9) |
| 0.7% |
| Total Pennsylvania | 106,552 |
| 105,111 |
| 1,441 |
| 65.4% |
| New York | 15,857 |
| 15,665 |
| 192 |
| 9.7% |
| Ohio | 5,980 |
| 5,975 |
| 5 |
| 3.7% |
| All other states | 34,828 |
| 34,014 |
| 814 |
| 21.2% |
|
|
| $ 163,217 |
| 160,765 |
| 2,452 |
|
|
|
|
|
|
|
|
|
|
|
|
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 March 31, |
|
| 2014 | 2013 |
|
| Average | Interest | Avg. | Average | Interest | Avg. |
|
| Balance |
| Yield/ | Balance |
| Yield/ |
|
|
|
| Cost (g) |
|
| Cost (g) |
|
Assets: |
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
Loans receivable (a) (b) (d) | $ 5,823,527 | 69,916 | 4.87% | $ 5,638,332 | 73,527 | 5.22% |
|
Mortgage-backed securities (c) | 621,146 | 2,793 | 1.80% | 725,524 | 3,441 | 1.90% |
|
Investment securities (c) (d) | 507,354 | 3,627 | 2.86% | 470,386 | 4,079 | 3.47% |
|
FHLB stock | 43,715 | 275 | 2.52% | 46,868 | 38 | 0.32% |
|
Other interest-earning deposits | 351,615 | 200 | 0.23% | 452,385 | 251 | 0.22% |
|
|
|
|
|
|
|
|
|
Total interest-earning assets | 7,347,357 | 76,811 | 4.23% | 7,333,495 | 81,336 | 4.44% |
|
|
|
|
|
|
|
|
|
Noninterest-earning assets (e) | 584,754 |
|
| 585,516 |
|
|
|
|
|
|
|
|
|
|
|
Total assets | $ 7,932,111 |
|
| $ 7,919,011 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
Savings accounts | $ 1,208,349 | 804 | 0.27% | $ 1,180,487 | 894 | 0.31% |
|
Interest-bearing demand accounts | 851,723 | 139 | 0.07% | 840,264 | 139 | 0.07% |
|
Money market deposit accounts | 1,173,957 | 782 | 0.27% | 1,107,522 | 742 | 0.27% |
|
Time deposits | 1,642,224 | 4,765 | 1.18% | 1,849,782 | 6,039 | 1.32% |
|
Borrowed funds (f) | 881,187 | 6,557 | 3.02% | 853,487 | 6,426 | 3.05% |
|
Junior subordinated debentures | 103,094 | 1,157 | 4.49% | 103,094 | 1,405 | 5.45% |
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities | 5,860,534 | 14,204 | 0.98% | 5,934,636 | 15,645 | 1.07% |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand accounts | 815,117 |
|
| 768,071 |
|
|
|
Noninterest-bearing liabilities | 105,027 |
|
| 77,106 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities | 6,780,678 |
|
| 6,779,813 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity | 1,151,433 |
|
| 1,139,198 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity | $ 7,932,111 |
|
| $ 7,919,011 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income/ Interest rate spread |
| 62,607 | 3.25% |
| 65,691 | 3.37% |
|
|
|
|
|
|
|
|
|
Net interest-earning assets/ Net interest margin | $ 1,486,823 |
| 3.45% | $ 1,398,859 |
| 3.58% |
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets to |
|
|
|
|
|
|
|
interest-bearing liabilities | 1.25X |
|
| 1.24X |
|
|
|
|
|
|
|
|
|
|
|
(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 securities sold under agreements to repurchase. |
(g) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.83% and 5.18%, |
respectively, Investment securities - 2.16% and 2.52%, respectively, Interest-earning assets - 4.16% and |
4.35%, respectively.GAAP basis net interest rate spreads were 3.18% and 3.28%, respectively, and |
GAAP basis net interest marginswere 3.38% and 3.49%, 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 |
|
| March 31, 2014 | December 31, 2013 |
|
| Average | Interest | Avg. | Average | Interest | Avg. |
|
| Balance |
| Yield/ | Balance |
| Yield/ |
|
|
|
| Cost (g) |
|
| Cost (g) |
|
Assets: |
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
Loans receivable (a) (b) (d) | $ 5,823,527 | 69,916 | 4.87% | $ 5,762,308 | 71,421 | 4.96% |
|
Mortgage-backed securities (c) | 621,146 | 2,793 | 1.80% | 653,526 | 2,956 | 1.81% |
|
Investment securities (c) (d) | 507,354 | 3,627 | 2.86% | 528,612 | 3,740 | 2.83% |
|
FHLB stock | 43,715 | 275 | 2.52% | 43,715 | 180 | 1.65% |
|
Other interest-earning deposits | 351,615 | 200 | 0.23% | 373,694 | 249 | 0.26% |
|
|
|
|
|
|
|
|
|
Total interest-earning assets | 7,347,357 | 76,811 | 4.23% | 7,361,855 | 78,546 | 4.27% |
|
|
|
|
|
|
|
|
|
Noninterest-earning assets (e) | 584,754 |
|
| 541,511 |
|
|
|
|
|
|
|
|
|
|
|
Total assets | $ 7,932,111 |
|
| $ 7,903,366 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity: |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
Savings accounts | $ 1,208,349 | 804 | 0.27% | $ 1,191,476 | 919 | 0.31% |
|
Interest-bearing demand accounts | 851,723 | 139 | 0.07% | 851,356 | 144 | 0.07% |
|
Money market deposit accounts | 1,173,957 | 782 | 0.27% | 1,160,520 | 783 | 0.27% |
|
Time deposits | 1,642,224 | 4,765 | 1.18% | 1,690,251 | 5,065 | 1.19% |
|
Borrowed funds (f) | 881,187 | 6,557 | 3.02% | 889,920 | 6,711 | 2.99% |
|
Junior subordinated debentures | 103,094 | 1,157 | 4.49% | 103,094 | 1,183 | 4.49% |
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities | 5,860,534 | 14,204 | 0.98% | 5,886,617 | 14,805 | 1.00% |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand accounts | 815,117 |
|
| 808,732 |
|
|
|
Noninterest-bearing liabilities | 105,027 |
|
| 64,338 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities | 6,780,678 |
|
| 6,759,687 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity | 1,151,433 |
|
| 1,143,679 |
|
|
|
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Total liabilities and shareholders' equity | $ 7,932,111 |
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| $ 7,903,366 |
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Net interest income/ Interest rate spread |
| 62,607 | 3.25% |
| 63,741 | 3.27% |
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Net interest-earning assets/ Net interest margin | $ 1,486,823 |
| 3.45% | $ 1,475,238 |
| 3.46% |
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Ratio of interest-earning assets to |
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interest-bearing liabilities | 1.25X |
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| 1.25X |
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(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 securities sold under agreements to repurchase. |
(g) Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.83% and 4.92%, |
respectively, Investment securities - 2.16% and 2.12%, respectively, Interest-earning assets - 4.16% and |
4.19%, respectively. GAAP basis net interest rate spreads were 3.18% and 3.19%, respectively, and |
GAAP basis net interest margins were 3.38% and 3.38%, respectively. |
SOURCE Northwest Bancshares, Inc.