Northwest Bancshares, Inc. Announces Fourth Quarter 2013 Earnings and Dividend Declaration - KWES NewsWest 9 / Midland, Odessa, Big Spring, TX: newswest9.com |

Northwest Bancshares, Inc. Announces Fourth Quarter 2013 Earnings and Dividend Declaration

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SOURCE Northwest Bancshares, Inc.

WARREN, Pa., Jan. 24, 2014 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2013 of $20.4 million, or $0.22 per diluted share.  This represents an increase of $4.1 million, or 24.7%, over the same quarter last year when net income was $16.3 million, or $0.18 per diluted share, and an increase of $2.8 million, or 15.7%, compared to the quarter ended September 30, 2013 when net income was $17.6 million, or $0.19 per diluted share.  The annualized returns on average shareholders' equity and average assets for the current quarter were 7.06% and 1.02% compared to 5.65% and 0.81% for the same quarter last year and 6.18% and 0.88% for the quarter ended September 30, 2013. 

For the year ended December 31, 2013 net income was $66.7 million which represents an increase of $3.1 million, or 5.0%, compared to net income of $63.6 million for the year ended December 31, 2012.  Diluted earnings per share for the year ended December 31, 2013 increased to $0.73 from $0.68 for the year ended December 31, 2012.  The returns on average shareholders' equity and average assets were 5.88% and 0.84%, respectively, for the current year compared to 5.48% and 0.79%, respectively, in the prior year.    

The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.13 per share and a special cash dividend of $0.10 per share, both payable on February 13, 2014, to shareholders of record as of February 3, 2014.  This represents the 77th consecutive quarter in which the Company has paid a cash dividend. 

In making this announcement, William J. Wagner, President and CEO, noted, "Given the continued consistency in annual earnings and our robust capital position, we are pleased to return some excess capital to our shareholders in the form of a special dividend of $0.10 per share.  We are also pleased to report positive trends in the most challenging areas of our operation.  While our net interest margin continues to shrink, the rate of contraction has slowed, as we lost only two basis points per quarter over the past two quarters.  We continued to experience solid loan growth with a $75 million increase during the quarter, split proportionately between the personal and commercial portfolios.  Classified and nonaccrual loans continued to decrease which resulted in the recording of the lowest quarterly provision for loan losses since the credit crisis began in 2008."

Net interest income decreased by $4.3 million, or 6.4%, to $62.0 million for the quarter ended December 31, 2013, from $66.3 million for the quarter ended December 31, 2012, as decreases in interest income on loans receivable and investment securities of $5.5 million and $816,000, respectively, were partially offset by a $2.1 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 decreased by $7.2 million, or 88.2%, to $964,000 for the quarter ended December 31, 2013, from $8.2 million for the quarter ended December 31, 2012.  Loans 90 days or more delinquent decreased by $10.5 million, or 15.5%, to $57.8 million at December 31, 2013 from $68.3 million at December 31, 2012.  Additionally, criticized loans decreased by $36.5 million, or 11.0%, to $295.5 million at December 31, 2013 from $332.0 million at December 31, 2012.  At December 31, 2013, the allowance for loan losses was $71.3 million, or 1.23% of total loans, compared to $73.2 million, or 1.28% of total loans, at December 31, 2012.  Net charge-offs were $5.5 million, or 0.38% for the quarter ended December 31, 2013 compared to $6.1 million, or 0.43% for the same quarter last year. 

Noninterest income increased by $6.2 million, or 42.6%, to $20.9 million for the quarter ended December 31, 2013, from $14.7 million for the quarter ended December 31, 2012.  This increase is due primarily to a $5.5 million increase in the gain on sale of investments. Additionally, the loss on the sale of real estate owned decreased by $2.1 million as the portfolio of foreclosed real estate decreased by $8.0 million, or 30.4%, compared to last year.  Partially offsetting these increases was a decrease in mortgage banking income of $1.6 million, due primarily to retaining all new residential mortgage originations. 

Noninterest expense increased by $2.2 million, or 4.3%, to $52.6 million for the quarter ended December 31, 2013, from $50.4 million for the quarter ended December 30, 2012, due primarily to an increase in marketing expense of $1.1 million which was due to the timing of various campaigns in the current and prior year. 

Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Savings Bank.  Founded in 1896, Northwest Savings Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. Northwest operates 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)






















December 31,


Assets


2013


2012


Cash and cash equivalents




$      98,122


88,277


Interest-earning deposits in other financial institutions


293,149


362,794


Federal funds sold and other short-term investments


634


633


Marketable securities available-for-sale (amortized cost of $1,022,078 and $1,053,122)

1,016,767


1,079,074


Marketable securities held-to-maturity (fair value of $124,061 and $161,969)


121,366


155,081



Total cash, interest-earning deposits and marketable securities


1,530,038


1,685,859














Residential mortgage loans held for sale



221


15,441


Residential mortgage loans




2,482,783


2,400,208


Home equity loans 






1,083,939


1,083,654


Other consumer loans





228,348


228,350


Commercial real estate loans



1,608,399


1,585,833


Commercial loans






402,601


388,994



Total loans receivable




5,806,291


5,702,480


Allowance for loan losses




(71,348)


(73,219)



Loans receivable, net




5,734,943


5,629,261














Federal Home Loan Bank stock, at cost



43,715


46,834


Accrued interest receivable




21,821


23,313


Real estate owned, net





18,203


26,165


Premises and Equipment, net



146,139


138,824


Bank owned life insurance




140,172


137,044


Goodwill and other intangible assets



174,463


174,461


Other intangible assets





2,319


3,529


Other assets






72,754


77,310



Total assets






$  7,884,567


7,942,600














Liabilities and Shareholders' equity






Liabilities





Noninterest-bearing demand deposits



$    789,135


755,429


Interest-bearing demand deposits



852,809


851,771


Savings deposits






2,359,538


2,271,311


Time deposits






1,667,397


1,886,089



Total deposits






5,668,879


5,764,600


Borrowed funds






881,645


860,047


Advances by borrowers for taxes and insurance


26,669


23,325


Accrued interest payable




888


888


Other liabilities






43,499


62,177


Junior subordinated debentures



103,094


103,094



Total liabilities






6,724,674


6,814,131














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, 94,243,713 shares






and 93,652,960 shares issued and outstanding, respectively


943


937


Paid-in-capital






619,678


613,249


Retained earnings






571,164


550,296


Unallocated common stock of Employee Stock Ownership Plan


(23,083)


(24,525)


Accumulated other comprehensive loss



(8,809)


(11,488)



Total shareholders' equity



1,159,893


1,128,469



Total liabilities and shareholders' equity


$  7,884,567


7,942,600

















Equity to assets


14.72%


14.21%





Tangible common equity to assets


12.76%


12.24%





Book value per share


$         12.29


12.05





Tangible book value per share


$         10.42


10.15





Closing market price per share


$         14.78


12.14





Full time equivalent employees


2,043


2,042





Number of banking offices


165


165


























 

Northwest Bancshares, Inc. and Subsidiaries


Consolidated Statements of Income


(Dollars in thousands, except per share amounts)


















Quarter ended







December 31,


September 30,







2013


2012


2013


Interest income:









Loans receivable


$            70,849


76,366


71,480



Mortgage-backed securities


2,956


3,697


3,113



Taxable investment securities


1,052


743


1,030



Tax-free investment securities


1,748


2,132


1,912



Interest-earning deposits


249


382


253




Total interest income


76,854


83,320


77,788













Interest expense:









Deposits


6,911


9,042


7,150



Borrowed funds


7,894


7,998


8,126




Total interest expense


14,805


17,040


15,276















Net interest income


62,049


66,280


62,512


Provision for loan losses


964


8,173


4,992




Net interest income after provision










for loan losses


61,085


58,107


57,520













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


5,889


394


109



Service charges and fees


8,874


8,922


9,282



Trust and other financial services income


2,483


2,288


2,380



Insurance commission income


2,131


1,463


2,019



Loss on real estate owned, net


(660)


(2,804)


(111)



Income from bank owned life insurance


1,846


1,589


1,178



Mortgage banking income


228


1,874


203



Other operating income


869


964


1,049




Total noninterest income


20,947


14,690


16,109













Noninterest expense:









Compensation and employee benefits


28,475


28,302


27,629



Premises and occupancy costs


5,652


5,680


5,633



Office operations


3,823


3,419


3,497



Processing expenses


6,269


6,459


6,036



Marketing expenses


1,259


134


1,032



Federal deposit insurance premiums


1,361


1,211


1,377



Professional services


2,044


1,869


1,331



Amortization of intangible assets


222


219


291



Real estate owned expense


557


477


681



Other expense


2,918


2,662


2,770




Total noninterest expense


52,580


50,432


50,277















Income before income taxes


29,452


22,365


23,352



Income tax expense


9,089


6,040


5,752
















Net income


$         20,363


16,325


17,600













Basic earnings per share


$             0.22


0.18


0.19













Diluted earnings per share


$              0.22


0.18


0.19













Annualized return on average equity


7.06%


5.65%


6.18%


Annualized return on average assets


1.02%


0.81%


0.88%













Basic common shares outstanding


90,864,076


92,716,973


90,760,402


Diluted common shares outstanding


92,245,167


92,929,614


91,824,384













 

Northwest Bancshares, Inc. and Subsidiaries


Consolidated Statements of Income


(Dollars in thousands, except per share amounts)
















Year ended 







December 31,







2013


2012


Interest income:







Loans receivable


$            287,289


308,254



Mortgage-backed securities


12,818


16,738



Taxable investment securities


4,021


2,328



Tax-free investment securities


7,817


9,119



Interest-earning deposits


1,093


1,599




Total interest income


313,038


338,038











Interest expense:







Deposits


29,279


43,377



Borrowed funds


31,883


31,822




Total interest expense


61,162


75,199













Net interest income


251,876


262,839


Provision for loan losses


18,519


26,338




Net interest income after provision








for loan losses


233,357


236,501











Noninterest income:







Impairment losses on securities


(713)


(996)



Noncredit related losses on securities not expected








to be sold (recognized in other comprehensive income)


-


665



Net impairment losses


(713)


(331)



Gain on sale of investments, net


6,118


654



Service charges and fees


35,884


35,623



Trust and other financial services income


9,330


8,544



Insurance commission income


8,635


6,264



Loss on real estate owned, net


(3,186)


(5,643)



Income from bank owned life insurance


5,197


4,961



Mortgage banking income


1,623


4,678



Other operating income


3,959


4,154




Total noninterest income


66,847


58,904











Noninterest expense:







Compensation and employee benefits


112,190


111,727



Premises and occupancy costs


23,182


22,409



Office operations


14,454


13,224



Processing expenses


25,548


25,000



Marketing expenses


6,284


7,829



Federal deposit insurance premiums


5,600


5,554



Professional services


6,267


7,005



Amortization of intangible assets


1,210


1,012



Real estate owned expense


2,437


2,620



Other expense


9,962


9,097




Total noninterest expense


207,134


205,477













Income before income taxes


93,070


89,928



Income tax expense


26,331


26,368














Net income


$               66,739


63,560











Basic earnings per share


$                   0.74


0.68











Diluted earnings per share


$                   0.73


0.68











Annualized return on average equity


5.88%


5.48%


Annualized return on average assets


0.84%


0.79%











Basic common shares outstanding


90,626,324


93,912,821


Diluted common shares outstanding


91,470,819


94,201,374











 

Northwest Bancshares, Inc. and Subsidiaries


Asset quality


(Dollars in thousands)
















December 31, 

2013


December 31, 

2012


December 31,

2011


December 31,

2010













Non-accrual loans current:











Residential mortgage loans


$                1,361


797


-


-



Home equity loans


835


635


-


-



Other consumer loans


98


44


-


-



Commercial real estate loans


17,866


24,960


13,057


7,378



Commercial loans


13,357


5,424


13,480


23,317


Total non-accrual loans current


$              33,517


31,860


26,537


30,695













Non-accrual loans delinquent 30 days to 59 days:











Residential mortgage loans


$                   427


-


-


-



Home equity loans


404


-


-


-



Other consumer loans


15


-


-


-



Commercial real estate loans


3,468


5,549


3,274


4,039



Commercial loans


7,650


2,002


90


1,465


Total non-accrual loans delinquent 30 days to 59 days


$             11,964


7,551


3,364


5,504













Non-accrual loans delinquent 60 days to 89 days:











Residential mortgage loans


$                    864


-


-


-



Home equity loans


280


-


-


-



Other consumer loans


87


-


-


-



Commercial real estate loans


2,036


2,802


1,560


10,923



Commercial loans


716


9,652


3,808


848


Total non-accrual loans delinquent 60 days to 89 days


$                3,983


12,454


5,368


11,771













Non-accrual loans delinquent 90 days or more:











Residential mortgage loans


$             24,625


24,286


28,221


29,751



Home equity loans


8,344


8,479


9,560


10,263



Other consumer loans


2,057


1,936


2,667


2,565



Commercial real estate loans


18,433


24,550


44,603


44,965



Commercial loans


4,298


9,096


10,785


12,877


Total non- accrual loans delinquent 90 days or more


$             57,757


68,347


95,836


100,421













Total non-accrual loans


$            107,221


120,212


131,105


148,391



























December 31,


December 31,


December 31,


December 31,





2013


2012


2011


2010













Non-accrual loans


$            107,221


120,212


131,105


148,391


Loans 90 days past maturity and still accruing


690


1,698


510


1,067


   Nonperforming loans


107,911


121,910


131,615


149,458


Real estate owned, net


18,203


26,165


26,887


20,780


   Nonperforming assets


$             126,114


148,075


158,502


170,238













Non-accrual troubled debt restructuring *


$               28,889


41,166


29,575


41,740


Accruing troubled debt restructuring


50,277


48,278


39,854


10,865


Total troubled debt restructuring


$               79,166


89,444


69,429


52,605













Nonperforming loans to total loans


1.86%


2.14%


2.37%


2.70%













Nonperforming assets to total assets


1.60%


1.86%


1.99%


2.09%













Allowance for loan losses to total loans


1.23%


1.28%


1.28%


1.38%













Allowance for loan losses to nonperforming loans


66.12%


60.06%


54.05%


51.13%













* Amounts included in nonperforming loans above.










 

Northwest Bancshares, Inc. and Subsidiaries

Delinquency

(Dollars in thousands)




















































Loan delinquency schedule

















(Number of loans and dollar amount of loans)
















December 31,


December 31,


December 31,


December 31,



2013

*


2012

*


2011

*


2010

*

Loans delinquent 30 days to 59 days:

















Residential mortgage loans

374

$      27,486

1.1%


430

$      32,921

1.4%


427

$      33,671

1.4%


427

$      35,329

1.5%


Home equity loans

213

6,946

0.6%


224

6,534

0.6%


222

7,426

0.7%


230

7,317

0.7%


Consumer loans

1,010

4,515

2.0%


1,122

5,456

2.4%


903

4,854

2.0%


1,008

5,318

2.1%


Commercial real estate loans

73

8,449

0.5%


87

13,001

0.8%


104

10,680

0.7%


82

16,287

1.2%


Commercial loans

34

9,243

2.3%


41

3,233

0.8%


32

2,027

0.5%


48

6,590

1.5%

Total loans delinquent 30 days to 59 days

1,704

$      56,639

1.0%


1,904

$      61,145

1.1%


1,688

58,658

1.1%


1,795

$      70,841

1.3%


















Loans delinquent 60 days to 89 days:

















Residential mortgage loans

103

$         7,568

0.3%


100

$         9,387

0.4%


99

$         8,629

0.4%


106

$         9,848

0.4%


Home equity loans

67

2,243

0.2%


65

1,977

0.2%


47

1,953

0.2%


81

3,249

0.3%


Consumer loans

507

1,866

0.8%


448

1,830

0.8%


412

1,787

0.7%


356

1,331

0.5%


Commercial real estate loans

35

3,968

0.2%


33

4,596

0.3%


38

3,122

0.2%


39

14,365

1.1%


Commercial loans

16

1,555

0.4%


17

10,158

2.6%


25

4,958

1.3%


9

1,678

0.4%

Total loans delinquent 60 days to 89 days

728

$      17,200

0.3%


663

$      27,948

0.5%


621

20,449

0.4%


591

$      30,471

0.6%


















Loans delinquent 90 days or more:

















Residential mortgage loans

273

$      24,625

1.0%


266

$      24,286

1.0%


273

$      28,221

1.2%


275

$      29,751

1.2%


Home equity loans

171

8,344

0.8%


175

8,479

0.8%


177

9,560

0.9%


190

10,263

0.9%


Consumer loans

470

2,057

0.9%


427

1,936

0.8%


456

2,667

1.1%


374

2,565

1.0%


Commercial real estate loans

124

18,433

1.1%


146

24,550

1.5%


131

44,603

3.1%


181

44,965

3.3%


Commercial loans

31

4,298

1.1%


61

9,096

2.3%


66

10,785

2.8%


111

12,877

3.0%

Total loans delinquent 90 days or more

1,069

$      57,757

1.0%


1,075

$      68,347

1.2%


1,103

95,836

1.7%


1,131

$   100,421

1.8%


















Total loans delinquent

3,501

$   131,596

2.3%


3,642

$   157,440

2.8%


3,412

$   174,943

3.2%


3,517

$   201,733

3.7%



















* - 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 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


Loans by credit quality indicators as of December 31, 2012 


(Dollars in thousands)
































Recorded
















investment








Special








in loans






Pass


mention


Substandard


 Doubtful 


 Loss 


receivable


Personal Banking:
















Residential mortgage loans


$         2,395,809


-


18,743


48


1,049


2,415,649




Home equity loans


1,075,200


-


8,454


-


-


1,083,654




Other consumer loans


227,089


-


1,261


-


-


228,350



Total Personal Banking


3,698,098


-


28,458


48


1,049


3,727,653


















Business Banking:
















Commercial real estate loans


1,352,118


68,130


163,751


1,834


-


1,585,833




Commercial loans


320,228


13,077


52,742


2,947


-


388,994



Total Business Banking


1,672,346


81,207


216,493


4,781


-


1,974,827






















$         5,370,444


81,207


244,951


4,829


1,049


5,702,480


































 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for loan losses

(Dollars in thousands)














Quarter ended


Year ended




December 31, 


December 31, 




2013


2012


2013


2012

Allowance for loan losses 










Beginning balance


$    75,865


71,177


73,219


71,138


Provision


964


8,173


18,519


26,338


Charge-offs residential mortgage


(499)


(836)


(2,501)


(4,295)


Charge-offs home equity


(851)


(1,317)


(2,239)


(4,066)


Charge-offs other consumer


(1,696)


(1,592)


(6,055)


(5,919)


Charge-offs commercial real estate


(2,308)


(4,102)


(10,042)


(9,919)


Charge-offs commercial


(1,322)


(1,245)


(5,007)


(6,254)


Recoveries


1,195


2,961


5,454


6,196


Ending balance


$    71,348


73,219


71,348


73,219





















Net charge-offs to average loans, annualized


0.38%


0.43%


0.36%


0.43%





















 

Northwest Bancshares, Inc. and Subsidiaries

Municipal securities portfolio

(Dollars in thousands)














December 31, 2013


As a % of




Market


Amortized


Unrealized


amortized




 value 


cost


gain/ (loss)


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


























December 31, 2012


As a % of




Market


Amortized


Unrealized


amortized




 value 


cost


gain


cost

Municipal securities by state:









Pennsylvania










School districts

$                 96,271


91,951


4,320


46.7%



General obligations

37,205


35,418


1,787


18.0%



Revenue bonds

3,006


2,948


58


1.5%


Total Pennsylvania

136,482


130,317


6,165


66.2%


New York

26,831


25,954


877


13.2%


Ohio

6,390


5,973


417


3.0%


All other states

37,683


34,659


3,024


17.6%




$              207,386


196,903


10,483











































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 December 31, 


2013

2012


 Average 

 Interest 

 Avg. 

 Average 

 Interest 

 Avg. 


 Balance 


 Yield/ 

 Balance 


 Yield/ 




 Cost (g) 



 Cost (g) 

Assets:







Interest-earning assets:







   Loans receivable (a) (b) (d)

$  5,762,308

71,421

4.96%

$  5,709,603

76,944

5.39%

   Mortgage-backed securities (c) 

653,526

2,956

1.81%

717,028

3,697

2.06%

   Investment securities (c) (d) 

528,612

3,740

2.83%

408,925

4,022

3.93%

   FHLB stock

43,715

180

1.65%

46,833

51

0.44%

   Other interest-earning deposits

373,694

249

0.26%

608,772

382

0.25%








Total interest-earning assets 

7,361,855

78,546

4.27%

7,491,161

85,096

4.54%








Noninterest earning assets (e)

541,511



502,514










Total assets

$  7,903,366



$  7,993,675










Liabilities and shareholders' equity:







Interest-bearing liabilities:







   Savings accounts

$  1,191,476

919

0.31%

$  1,145,405

1,019

0.35%

   Interest-bearing demand accounts

851,356

144

0.07%

837,955

145

0.07%

   Money market accounts

1,160,520

783

0.27%

1,115,655

842

0.30%

   Certificate accounts

1,690,251

5,065

1.19%

1,923,699

7,036

1.46%

   Borrowed funds (f)

889,920

6,711

2.99%

864,085

6,562

3.02%

   Junior subordinated debentures

103,094

1,183

4.49%

103,094

1,436

5.45%








Total interest-bearing liabilities

5,886,617

14,805

1.00%

5,989,893

17,040

1.13%








Noninterest bearing checking

808,732



751,164



Noninterest bearing liabilities

64,338



103,622










Total liabilities

6,759,687



6,844,679










Shareholders' equity

1,143,679



1,148,996










Total liabilities and shareholders' equity

$  7,903,366



$  7,993,675










Net interest income/ Interest rate spread


63,741

3.27%


68,056

3.41%








Net interest-earning assets/ Net interest margin

$  1,475,238


3.46%

$  1,501,268


3.63%








Ratio of interest-earning assets to







 interest-bearing liabilities

 1.25X 



 1.25X 










(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 - 4.92% and 5.35%, respectively, Investment securities - 2.12% 

      and 2.81%, respectively, Interest-earning assets - 4.19% and 4.45%, respectively. GAAP basis net interest rate spreads were 3.19% and 

      3.32%, respectively, and GAAP basis net interest margins were 3.38% and 3.54%, 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.










 Year ended December 31, 


2013

2012


 Average 

 Interest 

 Avg. 

 Average 

 Interest 

 Avg. 


 Balance 


 Yield/ 

 Balance 


 Yield/ 




 Cost (g) 



Cost (g) 

Assets:







Interest-earning assets:







   Loans receivable (a) (b) (d)

$  5,682,431

289,547

5.10%

$  5,655,179

310,513

5.49%

   Mortgage-backed securities (c) 

701,589

12,818

1.83%

736,896

16,738

2.27%

   Investment securities (c) (d) 

518,753

16,047

3.09%

353,431

16,357

4.63%

   FHLB stock

46,580

371

0.80%

47,205

87

0.18%

   Other interest-earning deposits

410,022

1,093

0.26%

638,366

1,599

0.25%








Total interest-earning assets 

7,359,375

319,876

4.35%

7,431,077

345,294

4.65%








Noninterest earning assets (e)

572,082



581,429










Total assets

$  7,931,457



$  8,012,506










Liabilities and shareholders' equity:







Interest-bearing liabilities:







   Savings accounts

$  1,197,931

3,595

0.30%

$  1,136,774

4,219

0.37%

   Interest-bearing demand accounts

855,031

576

0.07%

822,626

792

0.10%

   Money market accounts

1,133,584

3,042

0.27%

1,047,894

3,605

0.34%

   Certificate accounts

1,766,219

22,066

1.25%

2,059,702

34,761

1.69%

   Borrowed funds (f)

868,638

26,439

3.04%

850,171

26,105

3.07%

   Junior subordinated debentures

103,094

5,444

5.21%

103,094

5,717

5.47%








Total interest-bearing liabilities

5,924,497

61,162

1.03%

6,020,261

75,199

1.25%








Noninterest bearing checking

784,279



723,666



Noninterest bearing liabilities

87,193



109,483










Total liabilities

6,795,969



6,853,410










Shareholders' equity

1,135,488



1,159,096










Total liabilities and shareholders' equity

$  7,931,457



$  8,012,506










Net interest income/ Interest rate spread


258,714

3.32%


270,095

3.40%








Net interest-earning assets/ Net interest margin

$  1,434,878


3.52%

$  1,410,816


3.63%








Ratio of interest-earning assets to







 interest-bearing liabilities

 1.24X 



 1.23X 










(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 - 5.06% and 5.45%, respectively, Investment securities - 2.28% 

      and 3.24%, respectively, Interest-earning assets - 4.26% and 4.55%, respectively. GAAP basis net interest rate spreads were 3.23% and 

      3.30%, respectively, and GAAP basis net interest margins were 3.43% and 3.54%, respectively.











 

Northwest Bancshares, Inc. and Subsidiaries

Average balance sheet 

(Dollars in thousands)








The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and

average cost of liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of

assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages.










 Quarter ended 

 Quarter ended 


December 31, 2013

September 30, 2013


 Average 

 Interest 

 Avg. 

 Average 

 Interest 

 Avg. 


 Balance 


 Yield/ 

 Balance 


 Yield/ 




 Cost (g) 



 Cost (g) 

Assets:







Interest-earning assets:







   Loans receivable (a) (b) (d)

$  5,762,308

71,421

4.96%

$  5,703,527

72,051

5.05%

   Mortgage-backed securities (c) 

653,526

2,956

1.81%

701,510

3,113

1.78%

   Investment securities (c) (d) 

528,612

3,740

2.83%

545,005

3,972

2.92%

   FHLB stock

43,715

180

1.65%

47,650

120

1.01%

   Other interest-earning deposits

373,694

249

0.26%

376,699

253

0.26%








Total interest-earning assets 

7,361,855

78,546

4.27%

7,374,391

79,509

4.31%








Noninterest earning assets (e)

541,511



553,189










Total assets

$  7,903,366



$  7,927,580










Liabilities and shareholders' equity:







Interest-bearing liabilities:







   Savings accounts

$  1,191,476

919

0.31%

$  1,209,726

882

0.29%

   Interest-bearing demand accounts

851,356

144

0.07%

854,600

144

0.07%

   Money market accounts

1,160,520

783

0.27%

1,144,522

768

0.27%

   Certificate accounts

1,690,251

5,065

1.19%

1,735,898

5,356

1.22%

   Borrowed funds (f)

889,920

6,711

2.99%

864,315

6,690

3.07%

   Junior subordinated debentures

103,094

1,183

4.49%

103,094

1,436

5.45%








Total interest-bearing liabilities

5,886,617

14,805

1.00%

5,912,155

15,276

1.03%








Noninterest bearing checking

808,732



794,411



Noninterest bearing liabilities

64,338



91,385










Total liabilities

6,759,687



6,797,951










Shareholders' equity

1,143,679



1,129,629










Total liabilities and shareholders' equity 

$  7,903,366



$  7,927,580










Net interest income/ Interest rate spread


63,741

3.27%


64,233

3.28%








Net interest-earning assets/ Net interest margin

$  1,475,238


3.46%

$  1,462,236


3.48%








Ratio of interest-earning assets to







 interest-bearing liabilities

 1.25X 



 1.25X 










(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 - 4.92% and 5.01%, respectively, Investment securities - 2.12% 

       and 2.16%, respectively, Interest-earning assets - 4.19% and 4.23%, respectively. GAAP basis net interest rate spreads were 3.19% and 

      3.20%, respectively, and GAAP basis net interest margins were 3.38% and 3.40%, respectively.


















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