NORTHWEST BANCSHARES, INC. WARREN, Penn., Jan. 25, 2016 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2015 of $16.2 million, or $0.16 per diluted share. This represents a decrease of $1.1 million, or 6.6%, compared to the same quarter last year when net income was $17.3 million, or $0.19 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended December 31, 2015 were 5.83% and 0.77% compared to 6.42% and 0.88% for the same quarter last year. Earnings for the current quarter include acquisition expenses of $1.3 million relating to the merger of LNB Bancorp, Inc. ("LNB") on August 14, 2015. Excluding the after-tax impact of these expenses, non-GAAP net operating income for the quarter was $17.1 million, or $0.17 per diluted share. The non-GAAP annualized returns on average shareholders' equity and average assets for the quarter ended December 31, 2015 were 6.16% and 0.82%.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.15 per share payable on February 18, 2016, to shareholders of record as of February 4, 2016. This represents a 7.1% increase over the prior quarter and is the 85th consecutive quarter in which the Company has paid a cash dividend.
In making this announcement, William J. Wagner, President and CEO, noted, "2015 was an exciting year for Northwest as we completed the largest acquisition in the history of our company and with that, established a solid foundation for future growth in northeastern Ohio. Our fourth quarter earnings demonstrate the significant impact that this franchise will have on Northwest's core earnings. We also were pleased to continue to realize solid internal growth in our areas of primary focus, with loans growing by 5% and checking balances increasing by 10%. Looking ahead, we will continue to pursue strategies to strengthen our balance sheet by diversifying our loan and deposit mixes while also pursuing opportunities to enhance efficiency in all areas of operations."
Net interest income increased by $8.6 million, or 13.7%, to $71.2 million for the quarter ended December 31, 2015, from $62.6 million for the quarter ended December 31, 2014. This increase was due primarily to an increase in interest income on loans receivable of $9.7 million, or 13.6%, as a result of internal loan growth of $304.1 million over the prior year, while the LNB acquisition provided net loans of $928.1 million. Partially offsetting this increase was a decrease in interest received on tax-free investment securities of $631,000 and an increase in interest expense of $504,000 due primarily to the addition of $1.034 billion in deposits from the LNB acquisition.
The provision for loan losses increased by $3.5 million to $4.6 million for the quarter ended December 31, 2015, from $1.1 million for the quarter ended December 31, 2014. This increase is due primarily to the prior year provision being one of the lowest quarterly provisions over the past seven years. Asset quality improved compared to last year as classified loans decreased $24.4 million, or 11.2%, and total nonaccrual loans decreased $8.1 million, or 10.2%.
Noninterest income increased by $2.3 million, or 13.5%, to $19.5 million for the quarter ended December 31, 2015, from $17.2 million for the quarter ended December 31, 2014. This improvement is due primarily to an increase in service charges and fees of $1.2 million, or 13.6%. This increase was attributable to additional fees earned from the continued growth in checking accounts, as well as from the additional loan and deposit accounts provided by the LNB acquisition. Additionally, other operating income increased by $892,000, or 110.8%, due primarily to recoveries on loans acquired from LNB.
Noninterest expense increased by $6.0 million, or 10.9%, to $61.2 million for the quarter ended December 31, 2015, from $55.2 million for the quarter ended December 31, 2014. This increase was due primarily to a $1.3 million, or 19.9%, increase in processing expenses, due primarily to technology upgrades and the additional costs associated with the 21 offices acquired during the third quarter. Acquisition expense and premises and occupancy costs increased by $953,000 and $887,000, respectively, as a result of LNB merger and the costs associated with the acquired properties.
Income tax expense increased by $2.5 million, or 40.3%, to $8.7 million for the quarter ended December 31, 2015 from $6.2 million for the quarter ended December 31, 2014. This increase relates to the increase in net income before tax and the uncertainty of Pennsylvania's Education Improvement Tax credit program. Due to this uncertainty, the Company did not participate in the program during the current year.
Net income for the year ended December 31, 2015 of $60.5 million represents a decrease of $1.5 million, or 2.3%, compared to net income of $62.0 million for the year ended December 31, 2014. This decrease in annual earnings was due to $9.8 million of acquisition expenses, a $3.9 million, or 3.3%, increase in compensation and employee benefits as a result of the LNB acquisition, a $4.1 million, or 15.4%, increase in processing expense due primarily to recent technology upgrades, and a $6.2 million increase in income tax expense due primarily to a decrease in interest income from tax-free municipal bonds, as well as lower state tax credits. These factors were partially offset by a $14.4 million, or 5.8%, increase in net interest income and a $10.6 million, or 52.2%, decrease in the provision for loan losses. Diluted earnings per share for the year ended December 31, 2015 decreased to $0.64 per share from $0.67 per share last year. The annualized returns on average shareholders' equity and average assets were 5.49% and 0.73%, respectively, for the current year compared to 5.69% and 0.79%, respectively, in the prior year. Excluding the after-tax impact of $9.8 million of acquisition expenses, non-GAAP net operating income for the year was $67.0 million, or $0.71 per diluted share. The non-GAAP annualized returns on average shareholders' equity and average assets for the year ended December 31, 2015 were 6.08% and 0.80%.
The Company also announced plans to optimize its office network. In recent years, the Company has invested heavily in alternative delivery channels such as online and mobile banking, depository ATMs, and automated telephone banking which enables customers to transact business outside of the branch and beyond normal business hours. As a result, the number of transactions conducted in offices has significantly decreased over the past several years and has created an opportunity to improve operating efficiency. Based on these changes in customer preferences, the Company expects by mid-year 2016 to consolidate 24 of its offices into nearby locations and convert two full-service offices into drive-up only facilities. Expenses associated with these changes are expected to be approximately $5.0 million, which will be incurred during the first half of 2016, and the annual reduction in pre-tax operating expenses beginning in 2017 is expected to be between $5.0 million and $6.0 million.
Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest 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 176 full-service community banking offices in Pennsylvania, New York, Ohio and Maryland, five free standing drive-up facilities in Pennsylvania, and 51 consumer finance offices in Pennsylvania through its subsidiary, Northwest Consumer Discount Company. Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Savings Bank can be accessed on-line at www.northwestsavingsbank.com.
Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses; and (7) increased risk associated with 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, December 31,
Assets 2015 2014
------ ---- ----
Cash and cash equivalents $92,263 87,401
Interest-earning deposits in other financial institutions 74,510 152,671
Federal funds sold and other short-term investments 635 634
Marketable securities available-for-sale (amortized cost of $868,956 and
$906,702) 874,405 912,371
Marketable securities held-to-maturity (fair value of $32,552 and $106,292) 31,689 103,695
------ -------
Total cash, interest-earning deposits and marketable securities 1,073,502 1,256,772
Residential mortgage loans 2,750,564 2,521,456
Home equity loans 1,187,106 1,066,131
Other consumer loans 510,617 242,744
Commercial real estate loans 2,351,434 1,801,184
Commercial loans 422,400 358,376
------- -------
Total loans receivable 7,222,121 5,989,891
Allowance for loan losses (62,672) (67,518)
------- -------
Loans receivable, net 7,159,449 5,922,373
Federal Home Loan Bank stock, at cost 40,903 33,293
Accrued interest receivable 21,072 18,623
Real estate owned, net 8,725 16,759
Premises and Equipment, net 154,351 143,909
Bank owned life insurance 168,509 144,362
Goodwill 261,736 175,323
Other intangible assets 8,982 3,033
Other assets 54,670 60,586
Total assets $8,951,899 7,775,033
========== =========
Liabilities and Shareholders' equity
------------------------------------
Liabilities
Noninterest-bearing demand deposits $1,177,256 $891,248
Interest-bearing demand deposits 1,080,086 874,623
Money market deposit accounts 1,274,504 1,179,070
Savings deposits 1,386,017 1,209,287
Time deposits 1,694,718 1,478,314
--------- ---------
Total deposits 6,612,581 5,632,542
Borrowed funds 975,007 888,109
Advances by borrowers for taxes and insurance 33,735 30,507
Accrued interest payable 1,993 936
Other liabilities 54,207 57,198
Junior subordinated debentures 111,213 103,094
------- -------
Total liabilities 7,788,736 6,712,386
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, 101,871,737 shares
and 94,721,453 shares issued and outstanding, respectively 1,019 947
Paid-in-capital 717,603 626,134
Retained earnings 489,292 481,577
Unallocated common stock of Employee Stock Ownership Plan (20,216) (21,641)
Accumulated other comprehensive loss (24,535) (24,370)
------- -------
Total shareholders' equity 1,163,163 1,062,647
Total liabilities and shareholders' equity $8,951,899 7,775,033
========== =========
Equity to assets 12.99% 13.67%
Tangible common equity to assets 10.28% 11.64%
Book value per share $11.42 11.22
Tangible book value per share $8.76 9.34
Closing market price per share $13.39 12.53
Full time equivalent employees 2,186 2,042
Number of banking offices 181 162
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
Quarter ended
-------------
December 31, September 30,
------------
2015 2014 2015
---- ---- ----
Interest income:
Loans receivable $80,882 $71,182 76,087
Mortgage-backed
securities 2,301 2,357 2,230
Taxable investment
securities 1,108 1,032 1,238
Tax-free investment
securities 836 1,467 986
FHLB dividends 499 383 451
Interest-earning
deposits 13 164 99
--- --- ---
Total interest income 85,639 76,585 81,091
Interest expense:
Deposits 6,435 6,106 6,163
Borrowed funds 8,051 7,876 7,987
----- ----- -----
Total interest expense 14,486 13,982 14,150
Net interest income 71,153 62,603 66,941
Provision for loan
losses 4,595 1,078 3,167
----- ----- -----
Net interest income
after provision for
loan losses 66,558 61,525 63,774
Gain on sale of
investments 116 381 260
Service charges and
fees 10,530 9,268 9,945
Trust and other
financial services
income 3,410 3,291 3,062
Insurance commission
income 2,490 2,181 2,398
Loss on real estate
owned, net (156) (30) (246)
Income from bank owned
life insurance 1,251 1,057 1,166
Mortgage banking
income 208 269 267
Other operating income 1,697 805 1,288
----- --- -----
Total noninterest
income 19,546 17,222 18,140
Noninterest expense:
Compensation and
employee benefits 32,003 31,405 31,000
Premises and occupancy
costs 6,403 5,516 6,072
Office operations 4,504 3,677 3,892
Processing expenses 8,057 6,720 8,126
Marketing expenses 1,642 1,434 1,691
Federal deposit
insurance premiums 1,299 1,316 1,177
Professional services 1,933 1,970 1,529
Amortization of
intangible assets 729 331 422
Real estate owned
expense 393 406 471
Acquisition expense 1,347 394 7,590
Other expense 2,917 2,043 1,834
Total noninterest
expense 61,227 55,212 63,804
------ ------ ------
Income before income
taxes 24,877 23,535 18,110
Income tax expense 8,684 6,190 5,238
----- ----- -----
Net income $16,193 $17,345 12,872
======= ======= ======
Basic earnings per
share $0.16 $0.19 0.14
Diluted earnings per
share $0.16 $0.19 0.13
Annualized return on
average equity 5.83% 6.42% 4.54%
Annualized return on
average assets 0.77% 0.88% 0.59%
Basic common shares
outstanding 98,741,393 91,741,487 95,256,807
Diluted common shares
outstanding 99,500,056 92,103,069 95,825,798
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
Year ended
December 31,
------------
2015 2014
---- ----
Interest income:
Loans
receivable $298,665 282,050
Mortgage-
backed
securities 8,823 10,320
Taxable
investment
securities 4,520 4,130
Tax-free
investment
securities 4,313 6,281
FHLB
dividends 2,828 1,809
Interest-
earning
deposits 431 837
--- ---
Total
interest
income 319,580 305,427
Interest expense:
Deposits 24,055 25,322
Borrowed
funds 32,272 31,265
------ ------
Total
interest
expense 56,327 56,587
Net
interest
income 263,253 248,840
Provision
for loan
losses 9,712 20,314
----- ------
Net
interest
income
after
provision
for loan
losses 253,541 228,526
Noninterest income:
Gain on
sale of
investments 1,037 4,930
Service
charges
and fees 38,362 36,383
Trust and
other
financial
services
income 12,342 12,369
Insurance
commission
income 9,526 8,760
Loss on
real
estate
owned,
net (1,989) (967)
Income
from
bank
owned
life
insurance 4,338 4,191
Mortgage
banking
income 933 1,022
Other
operating
income 4,287 4,078
----- -----
Total
noninterest
income 68,836 70,766
Noninterest expense:
Compensation
and
employee
benefits 119,818 115,967
Premises
and
occupancy
costs 24,641 23,455
Office
operations 15,584 14,721
Processing
expenses 30,780 26,671
Marketing
expenses 8,499 8,213
Federal
deposit
insurance
premiums 5,109 5,193
Professional
services 6,906 7,661
Amortization
of
intangible
assets 1,688 1,323
Real
estate
owned
expense 2,070 2,140
Acquisition
expense 9,751 394
Other
expense 9,031 9,797
----- -----
Total
noninterest
expense 233,877 215,535
------- -------
Income
before
income
taxes 88,500 83,757
Income
tax
expense 27,960 21,795
------ ------
Net
income $60,540 61,962
======= ======
Basic
earnings
per
share $0.64 0.68
Diluted
earnings
per
share $0.64 0.67
Annualized
return
on
average
equity 5.49% 5.69%
Annualized
return
on
average
assets 0.73% 0.79%
Basic
common
shares
outstanding 94,314,420 91,535,298
Diluted
common
shares
outstanding 94,829,789 92,274,997
Northwest Bancshares, Inc. and Subsidiaries
Reconciliation of Non-GAAP to GAAP Net Income *
(Dollars in thousands, except per share amounts)
Quarter ended Year ended
December 31, December 31,
------------ ------------
2015 2014 2015 2014
---- ---- ---- ----
Operating results (non-GAAP):
Net interest income $71,153 62,603 263,253 248,840
Provision for loan losses 4,595 1,078 9,712 20,314
Noninterest income 19,546 17,222 68,836 70,766
Noninterest expense 59,880 55,212 224,126 215,535
Income taxes 9,111 6,190 31,239 21,795
----- ----- ------ ------
Net operating income (non-GAAP) $17,113 17,345 67,012 61,962
======= ====== ====== ======
Diluted earnings per share (non-GAAP) $0.17 0.19 0.71 0.67
===== ==== ==== ====
Reconciliation of net operating income to net income: $17,113 17,345 67,012 61,962
Net operating income (non-GAAP)
Non-operating expenses, net of tax:
Acquisition expenses, net of tax benefit (920) - (6,472) -
---- --- ------ ---
Net income (GAAP) $16,193 17,345 60,540 61,962
======= ====== ====== ======
Diluted earnings per share (GAAP) $0.16 0.19 0.64 0.67
===== ==== ==== ====
* - The table summarizes the Company's results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude acquisition expenses, net of tax benefit. The Company believe this non-
GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.
Northwest Bancshares, Inc. and Subsidiaries
Asset quality
(Dollars in thousands)
December 31, December 31, December 31, December 31,
2014 2013 2012
2015
----
Nonaccrual loans current:
Residential mortgage
loans $1,393 1,169 1,361 797
Home equity loans 1,108 1,527 835 635
Other consumer loans 140 88 98 44
Commercial real estate
loans 14,018 23,703 17,866 24,960
Commercial loans 4,604 5,917 13,357 5,424
Total nonaccrual loans
current $21,263 32,404 33,517 31,860
======= ====== ====== ======
Nonaccrual loans delinquent 30 days to
59 days:
Residential mortgage
loans $430 1,545 427 -
Home equity loans 375 712 404 -
Other consumer loans 97 48 15 -
Commercial real estate
loans 2,192 1,128 3,468 5,549
Commercial loans 322 9 7,650 2,002
Total nonaccrual loans
delinquent 30 days to
59 days $3,416 3,442 11,964 7,551
====== ===== ====== =====
Nonaccrual loans delinquent 60 days to
89 days:
Residential mortgage
loans $2,139 784 864 -
Home equity loans 389 724 280 -
Other consumer loans 315 234 87 -
Commercial real estate
loans 762 763 2,036 2,802
Commercial loans 110 131 716 9,652
Total nonaccrual loans
delinquent 60 days to
89 days $3,715 2,636 3,983 12,454
====== ===== ===== ======
Nonaccrual loans delinquent 90 days or
more:
Residential mortgage
loans $15,810 17,696 24,625 24,286
Home equity loans 5,650 6,606 8,344 8,479
Other consumer loans 2,900 2,450 2,057 1,936
Commercial real estate
loans 16,449 10,215 18,433 24,550
Commercial loans 2,459 4,359 4,298 9,096
Total nonaccrual loans
delinquent 90 days or
more $43,268 41,326 57,757 68,347
======= ====== ====== ======
Total nonaccrual loans $71,662 79,808 107,221 120,212
======= ====== ======= =======
December 31, December 31, December 31, December 31,
2014 2013 2012
2015
----
Nonaccrual loans $71,662 79,808 107,221 120,212
Loans 90 days past
maturity and still
accruing 1,334 235 690 1,698
----- --- --- -----
Nonperforming loans 72,996 80,043 107,911 121,910
Real estate owned, net 8,725 16,759 18,203 26,165
Nonperforming assets $81,721 96,802 126,114 148,075
======= ====== ======= =======
Nonaccrual troubled
debt restructuring * $21,118 24,459 28,889 41,166
Accruing troubled debt
restructuring 29,997 37,329 50,277 48,278
Total troubled debt
restructuring $51,115 61,788 79,166 89,444
======= ====== ====== ======
Nonperforming loans to
total loans 1.01% 1.34% 1.86% 2.14%
Nonperforming assets
to total assets 0.91% 1.25% 1.60% 1.86%
Allowance for loan
losses to total loans 0.87% 1.13% 1.23% 1.28%
Allowance for loan
losses to
nonperforming loans 85.86% 84.35% 66.12% 60.06%
* Amounts included in nonperforming loans above.
Northwest Bancshares, Inc. and Subsidiaries
Loans by credit quality indicators as of December 31, 2015
(Dollars in thousands)
Pass Special Substandard ** Doubtful Loss Recorded
mention * investment
in loans
receivable
----------
Personal Banking:
Residential mortgage
loans $2,735,164 - 14,060 - 1,340 2,750,564
Home equity loans 1,178,735 - 8,371 - - 1,187,106
Other consumer loans 508,074 - 2,543 - - 510,617
------- --- ----- --- --- -------
Total Personal Banking 4,421,973 - 24,974 - 1,340 4,448,287
Business Banking:
Commercial real estate
loans 2,170,951 53,390 126,978 115 - 2,351,434
Commercial loans 359,403 23,730 38,157 1,110 - 422,400
-------
Total Business Banking 2,530,354 77,120 165,135 1,225 - 2,773,834
--------- ------ ------- ----- --- ---------
$6,952,327 77,120 190,109 1,225 1,340 7,222,121
========== ====== ======= ===== ===== =========
* - Includes $7.6 million of acquired loans.
** - Includes $18.6 million of acquired loans.
Northwest Bancshares, Inc. and Subsidiaries
Loans by credit quality indicators as of December 31, 2014
(Dollars in thousands)
Pass Special Substandard Doubtful Loss Recorded
mention investment
in loans
receivable
----------
Personal Banking:
Residential mortgage
loans $2,507,269 - 12,763 - 1,424 2,521,456
Home equity loans 1,059,525 - 6,606 - - 1,066,131
Other consumer loans 240,947 - 1,797 - - 242,744
------- --- ----- --- --- -------
Total Personal Banking 3,807,741 - 21,166 - 1,424 3,830,331
Business Banking:
Commercial real estate
loans 1,570,649 36,908 145,502 505 - 1,753,564
Commercial loans 333,854 23,690 46,280 2,172 - 405,996
------- ------ ------ ----- --- -------
Total Business Banking 1,904,503 60,598 191,782 2,677 - 2,159,560
--------- ------ ------- ----- --- ---------
$5,712,244 60,598 212,948 2,677 1,424 5,989,891
========== ====== ======= ===== ===== =========
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, *
2014 2013 2012
2015
----
Loans delinquent 30
days to 59 days:
Residential mortgage 349 $25,943 0.9% 377 $27,443 1.1% 374 $27,486 1.1% 430 $32,921 1.4%
loans
Home equity loans 173 5,806 0.5% 161 5,752 0.5% 213 6,946 0.6% 224 6,534 0.6%
Consumer loans 1,234 7,101 1.4% 1,193 5,572 2.3% 1,010 4,515 2.0% 1,122 5,456 2.4%
Commercial real estate loans 48 24,877 1.1% 56 4,956 0.3% 73 8,449 0.5% 87 13,001 0.8%
Commercial loans 31 2,868 0.7% 26 2,262 0.6% 34 9,243 2.3% 41 3,233 0.8%
Total loans delinquent 30 days to
59 days 1,835 $66,595 0.9% 1,813 $45,985 0.8% 1,704 $56,639 1.0% 1,904 $61,145 1.1%
===== ======= === ===== ======= === ===== ======= === ===== ======= ===
Loans delinquent 60 days to 89 days:
Residential mortgage loans 100 $7,790 0.3% 100 $6,970 0.3% 103 $7,568 0.3% 100 $9,387 0.4%
Home equity loans 50 2,478 0.2% 49 1,672 0.2% 67 2,243 0.2% 65 1,977 0.2%
Consumer loans 521 2,521 0.5% 525 2,435 1.0% 507 1,866 0.8% 448 1,830 0.8%
Commercial real estate loans 21 8,228 0.3% 21 2,038 0.1% 35 3,968 0.2% 33 4,596 0.3%
Commercial loans 7 598 0.1% 4 209 0.1% 16 1,555 0.4% 17 10,158 2.6%
Total loans delinquent 60 days to
89 days 699 $21,615 0.3% 699 $13,324 0.2% 728 $17,200 0.3% 663 $27,948 0.5%
=== ======= === === ======= === === ======= === === ======= ===
Loans delinquent 90 days or more: **
Residential mortgage loans 215 $16,350 0.6% 225 $17,696 0.7% 273 $24,625 1.0% 266 $24,286 1.0%
Home equity loans 143 6,112 0.5% 139 6,606 0.6% 171 8,344 0.8% 175 8,479 0.8%
Consumer loans 523 2,926 0.6% 539 2,450 1.0% 470 2,057 0.9% 427 1,936 0.8%
Commercial real estate loans 113 19,031 0.8% 102 10,215 0.6% 124 18,433 1.1% 146 24,550 1.5%
Commercial loans 25 2,599 0.6% 25 4,359 1.1% 31 4,298 1.1% 61 9,096 2.3%
Total loans delinquent 90 days or
more 1,019 $47,018 0.7% 1,030 $41,326 0.7% 1,069 $57,757 1.0% 1,075 $68,347 1.2%
===== ======= === ===== ======= === ===== ======= === ===== ======= ===
Total loans delinquent 3,553 $135,228 1.9% 3,542 $100,635 1.7% 3,501 $131,596 2.3% 3,642 $157,440 2.8%
===== ======== === ===== ======== === ===== ======== === ===== ======== ===
* - Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
** - Includes $3.7 million of purchased credit impaired loans.
Northwest Bancshares, Inc. and Subsidiaries
Allowance for loan losses
(Dollars in thousands)
Quarter ended Year ended
December 31, December 31,
------------ ------------
2015 2014 2015 2014
---- ---- ---- ----
Allowance for loan losses
Beginning
balance $60,547 71,650 67,518 71,348
Provision 4,595 1,078 9,712 20,314
Charge-offs
residential
mortgage (171) (487) (1,126) (2,181)
Charge-offs
home equity (1,097) (493) (2,424) (1,783)
Charge-offs
other consumer (2,561) (1,813) (8,274) (6,423)
Charge-offs
commercial real
estate (1,216) (2,931) (6,326) (8,422)
Charge-offs
commercial (508) (1,070) (8,183) (11,936)
Recoveries 3,083 1,584 11,775 6,601
----- ----- ------ -----
Ending balance $62,672 67,518 62,672 67,518
======= ====== ====== ======
Net charge-offs
to average
loans,
annualized 0.14% 0.35% 0.23% 0.41%
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,
--------------------------
2015 2014
---- ----
Avg. Avg.
Average Interest Yield/ Average Interest Yield/
Balance Cost (g) Balance Cost (g)
------- ------- ------- -------
Assets:
-------
Interest-earning assets:
Loans receivable (a) (b) (d) $7,148,603 81,428 4.52% $5,961,303 71,669 4.77%
Mortgage-backed securities (c) 519,736 2,301 1.77% 536,990 2,357 1.76%
Investment securities (c) (d) 427,363 2,394 2.24% 495,554 3,289 2.65%
FHLB stock 38,651 499 5.12% 36,315 383 4.22%
Other interest-earning deposits 40,410 13 0.13% 251,229 164 0.26%
------ --- ------- ---
Total interest-earning assets 8,174,763 86,635 4.20% 7,281,391 77,862 4.28%
Noninterest earning assets (e) 747,317 546,946
------- -------
Total assets $8,922,080 $7,828,337
========== ==========
Liabilities and shareholders' equity:
-------------------------------------
Interest-bearing liabilities:
Savings deposits $1,378,377 871 0.25% $1,209,117 828 0.27%
Interest-bearing demand deposits 1,083,524 157 0.06% 884,542 147 0.07%
Money market deposit accounts 1,279,181 873 0.27% 1,182,041 797 0.27%
Time deposits 1,720,895 4,534 1.05% 1,506,526 4,334 1.14%
Borrowed funds (f) 906,574 6,730 2.95% 894,509 6,694 2.97%
Junior subordinated debentures 116,626 1,321 4.43% 103,094 1,182 4.49%
------- ----- ------- -----
Total interest-bearing liabilities 6,485,177 14,486 0.89% 5,779,829 13,982 0.96%
Noninterest-bearing demand deposits 1,145,276 897,082
Noninterest bearing liabilities 133,323 79,850
------- ------
Total liabilities 7,763,776 6,756,761
Shareholders' equity 1,158,304 1,071,576
--------- ---------
Total liabilities and shareholders' equity $8,922,080 $7,828,337
========== ==========
Net interest income/ Interest rate spread 72,149 3.31% 63,880 3.32%
Net interest-earning assets/ Net interest margin $1,689,586 3.53% $1,501,562 3.51%
Ratio of interest-earning assets to interest- 1.26 X 1.26 X
bearing liabilities
(a) Average gross loans
receivable includes
loans held as
available-for-sale
and loans placed on
nonaccrual status.
(b) Interest income
includes accretion/
amortization of
deferred loan fees/
expenses, which was
not material.
(c) Average balances do
not include the
effect of unrealized
gains or losses on
securities held as
available-for-sale.
(d) Interest income on
tax-free investment
securities and tax-
free loans are
presented on a fully
taxable equivalent
basis.
(e) Average balances
include the effect of
unrealized gains or
losses on securities
held as available-
for-sale.
(f) Average balances
include FHLB
borrowings and
collateralized
borrowings.
(g) Shown on a FTE basis.
GAAP basis yields for
the periods indicated
were: Loans - 4.49%
and 4.74%,
respectively,
Investment securities
- 1.82% and 2.02%,
respectively,
Interest-earning
assets - 4.16% and
4.21%, respectively.
GAAP basis net
interest rate spreads
were 3.27% and 3.25%,
respectively, and
GAAP basis net
interest margins were
3.48% and 3.44%,
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,
-----------------------
2015 2014
---- ----
Avg. Avg.
Average Interest Yield/ Average Interest Yield/
Balance Cost (g) Balance Cost (g)
------- ------- ------- -------
Assets:
-------
Interest-earning assets:
Loans receivable (a) (b) (d) $6,460,078 300,638 4.65% $5,883,244 284,107 4.83%
Mortgage-backed securities (c) 500,797 8,823 1.76% 581,906 10,320 1.77%
Investment securities (c) (d) 469,568 11,155 2.38% 499,718 13,792 2.76%
FHLB stock (h) 37,500 1,788 4.77% 41,975 1,809 4.33%
Other interest-earning deposits 179,201 431 0.24% 325,201 837 0.25%
------- --- ------- ---
Total interest-earning assets 7,647,144 322,835 4.22% 7,332,044 310,865 4.24%
Noninterest earning assets (e) 677,449 561,107
------- -------
Total assets $8,324,593 $7,893,151
========== ==========
Liabilities and shareholders' equity:
-------------------------------------
Interest-bearing liabilities:
Savings deposits $1,300,102 3,387 0.26% $1,221,304 3,286 0.27%
Interest-bearing demand deposits 976,789 568 0.06% 882,980 587 0.07%
Money market deposit accounts 1,202,143 3,222 0.27% 1,181,235 3,174 0.27%
Time deposits 1,540,905 16,878 1.10% 1,575,595 18,275 1.16%
Borrowed funds (f) 925,683 27,347 2.95% 881,118 26,574 3.02%
Junior subordinated debentures 108,507 4,925 4.48% 103,094 4,691 4.49%
------- ----- ------- -----
Total interest-bearing liabilities 6,054,129 56,327 0.93% 5,845,326 56,587 0.97%
Noninterest-bearing demand deposits 1,001,263 864,322
Noninterest bearing liabilities 166,530 94,298
------- ------
Total liabilities 7,221,922 6,803,946
Shareholders' equity 1,102,671 1,089,205
--------- ---------
Total liabilities and shareholders' equity $8,324,593 $7,893,151
========== ==========
Net interest income/ Interest rate spread 266,508 3.29% 254,278 3.27%
Net interest-earning assets/ Net interest margin $1,593,015 3.49% $1,486,718 3.47%
Ratio of interest-earning assets to interest- 1.26 X 1.25 X
bearing liabilities
(a) Average gross loans
receivable includes
loans held as
available-for-sale
and loans placed on
nonaccrual status.
(b) Interest income
includes accretion/
amortization of
deferred loan fees/
expenses, which was
not material.
(c) Average balances do
not include the
effect of unrealized
gains or losses on
securities held as
available-for-sale.
(d) Interest income on
tax-free investment
securities and tax-
free loans are
presented on a fully
taxable equivalent
basis.
(e) Average balances
include the effect of
unrealized gains or
losses on securities
held as available-
for-sale.
(f) Average balances
include FHLB
borrowings and
collateralized
borrowings.
(g) Shown on a FTE basis.
GAAP basis yields for
the periods indicated
were: Loans - 4.62%
and 4.79%,
respectively,
Investment securities
- 1.88% and 2.08%,
respectively,
Interest-earning
assets - 4.17% and
4.17%, respectively.
GAAP basis net
interest rate spreads
were 3.24% and 3.20%,
respectively, and
GAAP basis net
interest margins were
3.43% and 3.39%,
respectively.
(h) Excludes $1.0 million
special dividend paid
in February 2015 from
the average yield
calculation.
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, 2015 September 30, 2015
----------------- ------------------
Avg. Avg.
Average Interest Yield/ Average Interest Yield/
Balance Cost (g) Balance Cost (g)
------- ------- ------- -------
Assets:
-------
Interest-earning assets:
Loans receivable (a) (b) (d) $7,148,603 81,428 4.52% $6,584,664 76,583 4.61%
Mortgage-backed securities (c) 519,736 2,301 1.77% 498,757 2,230 1.79%
Investment securities (c) (d) 427,363 2,394 2.24% 482,666 2,754 2.28%
FHLB stock 38,651 499 5.12% 39,552 451 4.52%
Other interest-earning deposits 40,410 13 0.13% 162,041 99 0.24%
------ --- ------- ---
Total interest-earning assets 8,174,763 86,635 4.20% 7,767,680 82,117 4.19%
Noninterest earning assets (e) 747,317 846,439
------- -------
Total assets $8,922,080 $8,614,119
========== ==========
Liabilities and shareholders' equity:
-------------------------------------
Interest-bearing liabilities:
Savings deposits $1,378,377 871 0.25% $1,324,620 865 0.26%
Interest-bearing demand deposits 1,083,524 157 0.06% 1,022,585 149 0.06%
Money market deposit accounts 1,279,181 873 0.27% 1,217,122 825 0.27%
Time deposits 1,720,895 4,534 1.05% 1,577,159 4,324 1.09%
Borrowed funds (f) 906,574 6,730 2.95% 906,410 6,713 2.94%
Junior subordinated debentures 116,626 1,321 4.43% 111,213 1,274 4.48%
------- ----- ------- -----
Total interest-bearing liabilities 6,485,177 14,486 0.89% 6,159,109 14,150 0.91%
Noninterest-bearing demand deposits 1,145,276 1,054,270
Noninterest bearing liabilities 133,323 275,435
Total liabilities 7,763,776 7,488,814
Shareholders' equity 1,158,304 1,125,305
--------- ---------
Total liabilities and shareholders' equity $8,922,080 $8,614,119
========== ==========
Net interest income/ Interest rate spread 72,149 3.31% 67,967 3.28%
Net interest-earning assets/ Net interest margin $1,689,586 3.53% $1,608,571 3.50%
Ratio of interest-earning assets to interest- 1.26 X 1.26 X
bearing liabilities
(a) Average gross loans
receivable includes
loans held as
available-for-sale
and loans placed on
nonaccrual status.
(b) Interest income
includes accretion/
amortization of
deferred loan fees/
expenses, which was
not material.
(c) Average balances do
not include the
effect of unrealized
gains or losses on
securities held as
available-for-sale.
(d) Interest income on
tax-free investment
securities and tax-
free loans are
presented on a fully
taxable equivalent
basis.
(e) Average balances
include the effect of
unrealized gains or
losses on securities
held as available-
for-sale.
(f) Average balances
include FHLB
borrowings and
collateralized
borrowings.
(g) Shown on a FTE basis.
GAAP basis yields for
the periods indicated
were: Loans - 4.49%
and 4.58%,
respectively,
Investment securities
- 1.82% and 1.84%,
respectively,
Interest-earning
assets - 4.16% and
4.14%, respectively.
GAAP basis net
interest rate spreads
were 3.27% and 3.23%,
respectively, and
GAAP basis net
interest margins were
3.48% and 3.45%,
respectively.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-fourth-quarter-2015-earnings-and-increase-in-quarterly-dividend-300209129.html
SOURCE Northwest Bancshares, Inc.
