WARREN, Pa., Oct. 21 /PRNewswire-FirstCall/ -- Northwest Bancorp, Inc.
(Nasdaq: NWSB) announced net income for the quarter ended September 30, 2003
of $12.5 million, or $.26 per diluted share. This represents an increase of
$1.1 million, or 8.9% over the same quarter last year when net income was
$11.4 million, or $.24 per diluted share. The Company noted however, that
income for the current quarter was augmented by profits from the sale of
investment securities which contributed net income after tax of $2.0 million.
These profits related primarily to the sale of approximately $100 million of
municipal bonds acquired on August 31, 2003 when the Company purchased Bell
Federal Savings and Loan. The Company noted that these bonds had maturities
in excess of fifteen years and were sold in conjunction with the Company's
strategy to maintain an acceptable level of sensitivity to changes in interest
rates. As part of this strategy, the Company also prepaid $200 million of
long-term fixed-rate borrowings which were also acquired as part of the Bell
transaction.
Excluding the gains on sale of investments, net income decreased by
approximately $1.0 million, or 8.6%, from the prior year primarily as a result
of an increase in noninterest expense of $2.2 million before tax or $1.3
million after tax, and continued compression in the Company's net interest
margin. The increase in noninterest expense is directly attributable to the
growth of the Company's retail network. Over the past twelve months, the
Company has added fourteen new banking locations.
The annualized returns on average shareholders' equity and average assets
were 11.96% and 0.90%, respectively for the current quarter compared to 14.20%
and 1.03% for the same period last year. The Company's year-end is June 30
and the figures currently released are for its first fiscal quarter.
As previously mentioned, on August 31, 2003 the Company completed the
acquisition of First Bell Bancorp, Inc. and its subsidiary, Bell Federal
Savings and Loan Association of Bellevue, Pennsylvania. Beginning September
1, 2003, the results of Bell's operations have been included herein. The
largest acquisition in the Company's history, Bell had seven offices in
Allegheny County, Pennsylvania with assets of $825 million, loans of $220
million and deposits of $600 million. This acquisition increased the
Company's assets to over $6.0 billion. Bell was integrated with Northwest
Savings Bank on October 17, 2003.
Also during August, the Company completed an incremental stock offering
whereby 7.2 million of its common shares were sold in a public offering for
$115 million, or $15.85 per share. Simultaneously, an equal number of shares
owned by the Company's parent, Northwest Bancorp, MHC, were cancelled. As a
result, this new capital was procured without increasing the number of shares
outstanding or diluting the ownership position of the existing shareholders.
In making this announcement, William J. Wagner, President and CEO noted
that "we were pleased with what Northwest accomplished this past quarter.
Though our earnings were hindered by the current interest environment, we
completed the largest acquisition in the history of the Company and acquired a
significant amount of new capital through an incremental offering which was
the first of its kind. We also announced the proposed acquisition of Skibo
Financial Corp. and its subsidiary, First Carnegie Deposit. The market
reacted quite favorably to these three transactions and we appreciate the
confidence that our shareholders have demonstrated in support of our efforts."
The Company also announced that its Board of Directors declared a
quarterly dividend of $.10 per share to shareholders of record as of October
31, 2003 to be paid on November 14, 2003. This represents the thirty-sixth
consecutive quarter that the Company has paid a dividend since completing its
initial public offering in 1994.
Northwest Bancorp, Inc. is headquartered in Warren, Pennsylvania and
operates 131 banking locations in Pennsylvania and 5 banking locations in Ohio
through its subsidiary, Northwest Savings Bank. In addition, the Company
operates 8 banking locations in western New York through its subsidiary,
Jamestown Savings Bank. The Company also operates 47 consumer finance offices
in Pennsylvania and 2 consumer finance offices in New York through its
subsidiary, Northwest Consumer Discount Company.
Additional information regarding Northwest Bancorp, Inc. can be accessed
on-line at www.northwestsavingsbank.com .
In addition to historical information, this release may contain certain
forward-looking statements that are based on assumptions and information
currently available to management. These forward-looking statements are
subject to various risks and uncertainties including, but not limited to,
economic, regulatory, competitive and other factors affecting the Company and
its operations. Readers are cautioned not to place undue reliance on these
forward-looking statements as actual results may differ materially from those
expressed or implied. 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 BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
SEPTEMBER 30JUNE 30,
ASSETS 2003 (unaudited) 2003
CASH AND CASH EQUIVALENTS $64,208 75,563
INTEREST-EARNING DEPOSITS IN OTHER
FINANCIAL INSTITUTIONS 296,665 244,437
MARKETABLE SECURITIES AVAILABLE-
FOR-SALE (AMORTIZED
COST OF $1,159,914 AND $884,667) 1,165,359 896,631
MARKETABLE SECURITIES HELD-TO-
MATURITY (MARKET
VALUE OF $513,954 AND $486,922) 508,891 477,821
TOTAL CASH, INTEREST-EARNING
DEPOSITS AND
MARKETABLE SECURITIES 2,035,123 1,694,452
MORTGAGE LOANS - ONE- TO FOUR-
FAMILY 2,304,198 2,064,181
COMMERCIAL REAL ESTATE LOANS 391,869 377,507
CONSUMER LOANS 795,108 701,561
COMMERCIAL BUSINESS LOANS 130,469 130,115
TOTAL LOANS RECEIVABLE 3,621,644 3,273,364
ALLOWANCE FOR LOAN LOSSES (27,822) (26,593)
LOANS RECEIVABLE, NET 3,593,822 3,246,771
FEDERAL HOME LOAN BANK STOCK, AT
COST 47,513 33,764
ACCRUED INTEREST RECEIVABLE 23,034 18,714
REAL ESTATE OWNED, NET 3,348 3,664
PREMISES AND EQUIPMENT, NET 69,222 63,190
GOODWILL 129,581 76,206
OTHER ASSETS 135,931 85,606
TOTAL ASSETS $6,037,574 5,222,367
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
NONINTEREST-BEARING DEMAND DEPOSITS $208,517 190,987
INTEREST-BEARING DEMAND DEPOSITS 724,865 670,935
SAVINGS DEPOSITS 1,742,321 1,488,885
TIME DEPOSITS 2,198,651 1,912,749
TOTAL DEPOSITS 4,874,354 4,263,556
BORROWED FUNDS 554,437 465,750
ADVANCES BY BORROWERS FOR TAXES
AND INSURANCE 11,160 21,319
ACCRUED INTEREST PAYABLE 7,521 4,101
OTHER LIABILITIES 14,212 11,709
GUARANTEED PREFERRED BENEFICIAL
INTEREST IN THE COMPANY'S
JUNIOR SUBORDINATED DEFERRABLE
INTEREST DEBENTURES 99,000 99,000
TOTAL LIABILITIES 5,560,684 4,865,435
SHAREHOLDERS' EQUITY:
COMMON STOCK, $.10 PAR VALUE:
100,000,000 SHARES
AUTHORIZED, 47,723,227 AND
47,693,981 ISSUED
AND OUTSTANDING, RESPECTIVELY 4,772 4,769
PAID-IN CAPITAL 185,757 72,787
RETAINED EARNINGS 282,822 271,599
ACCUMULATED OTHER COMPREHENSIVE
INCOME:
NET UNREALIZED GAIN/ (LOSS) ON
SECURITIES AVAILABLE-
FOR-SALE, NET OF INCOME TAXES 3,539 7,777
476,890 356,932
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $6,037,574 5,222,367
EQUITY TO ASSETS 7.90% 6.83%
BOOK VALUE PER SHARE $9.99$7.48
CLOSING MARKET PRICE $18.26$16.03
FULL TIME EQUIVALENTS 1,518 1,489
NUMBER OF OFFICES 144 137
NORTHWEST BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
SEPTEMBER 30,
2003 2002
INTEREST INCOME:
LOANS RECEIVABLE $55,935 57,554
MORTGAGE-BACKED SECURITIES 4,750 6,355
TAXABLE INVESTMENT SECURITIES 3,465 2,359
TAX-FREE INVESTMENT SECURITIES 2,790 1,873
INTEREST-EARNING DEPOSITS 659 870
TOTAL INTEREST INCOME 67,599 69,011
INTEREST EXPENSE:
DEPOSITS 25,729 28,603
BORROWED FUNDS 7,190 6,017
TOTAL INTEREST EXPENSE 32,919 34,620
NET INTEREST INCOME 34,680 34,391
PROVISION FOR LOAN LOSSES 1,727 1,667
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 32,953 32,724
NONINTEREST INCOME:
SERVICE CHARGES AND FEES 3,277 3,406
TRUST AND OTHER FINANCIAL SERVICES
INCOME 908 853
INSURANCE COMMISSION INCOME 167 385
GAIN ON SALE OF MARKETABLE
SECURITIES, NET 3,314 287
GAIN ON SALE OF LOANS, NET 286 509
GAIN ON SALE OF REAL ESTATE OWNED, NET 553 47
INCOME FROM BANK OWNED LIFE INSURANCE 885 752
OTHER OPERATING INCOME 371 433
TOTAL NONINTEREST INCOME 9,761 6,672
NONINTEREST EXPENSE:
COMPENSATION AND EMPLOYEE BENEFITS 14,342 13,050
PREMISES AND OCCUPANCY COSTS 3,649 3,176
OFFICE OPERATIONS 2,081 1,878
PROCESSING EXPENSES 2,081 1,933
ADVERTISING 552 508
OTHER EXPENSES 2,240 2,214
TOTAL NONINTEREST EXPENSE 24,945 22,759
INCOME BEFORE INCOME TAXES 17,769 16,637
FEDERAL AND STATE INCOME TAXES 5,313 5,194
NET INCOME $12,456 11,443
BASIC EARNINGS PER SHARE $0.26$0.24
DILUTED EARNINGS PER SHARE $0.26$0.24
RETURN ON AVERAGE EQUITY 11.96% 14.20%
RETURN ON AVERAGE ASSETS 0.90% 1.03%
BASIC COMMON SHARES OUTSTANDING 47,709,603 47,563,940
DILUTED COMMON SHARES OUTSTANDING 48,264,644 48,058,182
NORTHWEST BANCORP, INC. AND SUBSIDIARIES
SUPPLEMENTARY DATA
(DOLLARS IN THOUSANDS)
THREE MONTHS YEAR
ENDED SEPTEMBER 30, ENDED
JUNE 30,
2003 2002 2003
ALLOWANCE FOR LOAN LOSSES
BEGINNING BALANCE 26,593 22,042 22,042
PROVISION 1,727 1,667 8,431
CHARGE-OFFS (1,596) (1,213) (5,778)
RECOVERIES 173 131 697
ACQUISITIONS 925 1,201 1,201
ENDING BALANCE 27,822 23,828 26,593
NET CHARGE-OFFS TO AVERAGE LOANS,
ANNUALIZED 0.17% 0.14% 0.16%
SEPTEMBER 30, JUNE 30,
2003 2002 2003
NON-PERFORMING LOANS 30,832 19,496 32,613
REAL ESTATE OWNED, NET 3,348 5,041 3,664
NON-PERFORMING ASSETS 34,180 24,537 36,277
NON-PERFORMING LOANS TO
TOTAL LOANS 0.85% 0.60% 1.00%
NON-PERFORMING ASSETS TO
TOTAL ASSETS 0.57% 0.51% 0.69%
ALLOWANCE FOR LOAN LOSSES TO
TOTAL LOANS 0.77% 0.74% 0.81%
ALLOWANCE FOR LOAN LOSSES TO
NON-PERFORMING LOANS 90.24% 122.22% 81.54%
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.
Three Months Ended September 30,
2003
Average Interest Avg.
Balance Yield/
Cost
ASSETS:
Interest earning assets:
Loans receivable (a)(b)(d) $3,380,559$56,283 6.66%
Mortgage-backed securities (c) $908,722$4,750 2.09%
Investment securities (c)(d)(e) $583,817$7,568 5.19%
FHLB stock $38,704$190 1.96%
Other interest earning deposits $296,080$659 0.89%
Total interest earning assets $5,207,882$69,450 5.33%
Noninterest earning assets (f) $344,003
TOTAL ASSETS $5,551,885
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest bearing liabilities:
Savings accounts $1,018,183$3,848 1.51%
Now accounts $688,160$1,746 1.01%
Money market demand accounts $611,997$2,585 1.69%
Certificate accounts $1,994,169$17,550 3.52%
Borrowed funds (g) $507,612$5,322 4.19%
Guaranteed preferred beneficial
interests in the Company's
junior subordinated debentures $99,000$1,868 7.55%
Total interest bearing liabilities $4,919,121$32,919 2.68%
Noninterest bearing liabilities $216,070
Total liabilities $5,135,191
Shareholders' equity $416,694
TOTAL LIABILITIES AND EQUITY $5,551,885
Net interest income/ Interest rate
spread $36,531 2.65%
Net interest earning assets/ Net
interest margin $288,761 2.81%
Ratio of interest earning assets to
interest bearing liabilities 1.06X 1.06X
(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.
(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 FNMA and FHLMC stock.
(f) Average balances include the effect of unrealized gains or losses
on securities held as available-for-sale.
(g) Average balances include FHLB borrowings, securities sold under
agreements to repurchase and other borrowings.
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.
Three Months Ended September 30,
2002
Average Interest Avg.
Balance Yield/
Cost
ASSETS:
Interest earning assets:
Loans receivable (a)(b)(d) $3,059,069$57,916 7.57%
Mortgage-backed securities (c) $548,464$6,355 4.63%
Investment securities (c)(d)(e) $301,937$5,000 6.62%
FHLB stock $23,731$197 3.32%
Other interest earning deposits $209,460$870 1.66%
Total interest earning assets $4,142,661$70,338 6.79%
Noninterest earning assets (f) $284,308
TOTAL ASSETS $4,426,969
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest bearing liabilities:
Savings accounts $720,518$4,751 2.64%
Now accounts $433,313$1,309 1.21%
Money market demand accounts $422,424$2,826 2.68%
Certificate accounts $1,912,725$19,717 4.12%
Borrowed funds (g) $305,791$4,088 5.35%
Guaranteed preferred beneficial
interests in the Company's
junior subordinated debentures $99,000$1,929 7.79%
Total interest bearing liabilities $3,893,771$34,620 3.56%
Noninterest bearing liabilities $210,822
Total liabilities $4,104,593
Shareholders' equity $322,376
TOTAL LIABILITIES AND EQUITY $4,426,969
Net interest income/ Interest rate
spread $35,718 3.23%
Net interest earning assets/ Net
interest margin $248,890 3.45%
Ratio of interest earning assets to
interest bearing liabilities 1.06X 1.06X
(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.
(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 FNMA and FHLMC stock.
(f) Average balances include the effect of unrealized gains or losses
on securities held as available-for-sale.
(g) Average balances include FHLB borrowings, securities sold under
agreements to repurchase and other borrowings.
SOURCE Northwest Bancorp, Inc.
-0- 10/21/2003
/CONTACT: William J. Wagner, President and Chief Executive Officer,
+1-814-726-2140, or William W. Harvey, Jr., Senior Vice President and Chief
Financial Officer, +1-814-726-2140, both of Northwest Bancorp, Inc./
/Web site: www.northwestsavingsbank.com /
(NWSB)
CO: Northwest Savings Bank; Northwest Bancorp
ST: Pennsylvania, Ohio
IN: FIN
SU: DIV ERN
DL-LA
-- CLTU038 --
3876 10/21/200310:53 EDThttp://www.prnewswire.com