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.
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SOURCE Northwest Bancshares, Inc.