WARREN, Pa., Jan. 20 /PRNewswire-FirstCall/ -- Northwest Bancorp, Inc.
(Nasdaq: NWSB) announced net income for the quarter ended December 31, 2004 of
$13.2 million, or $0.26 per diluted share. This represents a 3.3% increase
over the same quarter last year when net income was $12.7 million, or $0.26
per diluted share. The Company's year-end is June 30 and the earnings
currently released are for its second fiscal quarter.
The Company also noted that net income for the current fiscal quarter
decreased by $1.1 million, or 7.7%, compared to the Company's first fiscal
quarter ending September 30, 2004. This decrease is primarily attributable to
increases in health insurance expense and advertising expense. Advertising
expense has increased due to new market promotions and additional product
advertising campaigns.
Net income for the six-month period ended December 31, 2004 of
$27.4 million, or $0.55 per diluted share represents an increase of
$1.8 million, or 7.2% over the same six-month period last year when net income
was $25.6 million, or $0.53 per diluted share. In comparing the two periods,
the Company noted that the prior year's earnings included gains on the sale of
securities in the amount of $2.0 million, after tax. These gains, which the
Company does not consider core earnings, were recorded when the Company
restructured its balance sheet following the acquisition of Bell Federal
Savings in August 2003. Excluding these gains, net income increased by
$3.8 million, or 16.3%, over the previous year.
In making this announcement, William J. Wagner, President and CEO, noted,
"We are pleased that improvements in both our net interest margin and fee
income have resulted in an increase in earnings for both the three and
six month periods when compared to the previous year. These increases in
income were partially offset by an increase in operating expense which was
primarily attributable to the growth of our franchise. We also incurred
additional advertising expense relating to the promotion of the Northwest
brand."
Wagner continued, "Looking ahead, we believe the most significant issues
facing the banking industry are rising interest rates and credit quality. In
this regard, we believe that our balance sheet is asset sensitive and well-
positioned for a rising rate environment. As to the quality of our assets,
our underwriting has remained disciplined and delinquent loans and
nonperforming assets remain at levels that are low compared to industry
standards. Although we experienced an increase in loans charged off during
the most recent quarter, this increase is primarily attributable to one loan
which has been nonperforming for several years."
The annualized returns on average shareholders' equity and average assets
were 9.47% and 0.83%, respectively for the current quarter compared to 9.86%
and 0.86% for the same quarter last year.
During the current fiscal year, the Company completed the integration of
both Leeds Federal Savings Bank ("Leeds") and First Carnegie Deposit (First
Carnegie") into Northwest Savings Bank. Leeds and First Carnegie were
previously owned by Northwest Bancorp, MHC, the Company's parent. The results
of operations for Leeds are included for reporting periods beginning
January 24, 2003 and the results of operations for First Carnegie are included
for reporting periods beginning May 1, 2004, the dates on which Leeds and
First Carnegie, respectively, were acquired by Northwest Bancorp, MHC. As of
June 30, 2004, Leeds had two offices with assets of $467.5 million, loans of
$234.1 million and deposits of $419.0 million, while First Carnegie had three
offices with assets of $97.7 million and deposits of $86.9 million. In
exchange for the net assets of Leeds and First Carnegie, the Company issued
2,425,759 shares of common stock to Northwest Bancorp, MHC.
During the quarter, the Company announced that it has filed applications
with the FDIC and state regulators to merge Jamestown Savings Bank into
Northwest Savings Bank. Since Jamestown is currently a member of the
Northwest consolidated group and a significant portion of its back-office
operations are performed by Northwest Savings Bank, the merger is not expected
to have a material impact on operations. It is anticipated that the merger
will be completed during the Company's fourth fiscal quarter of 2005.
The Company also announced that its Board of Directors declared a
quarterly cash dividend of $0.12 per share to be paid on February 14, 2005 to
shareholders of record as of January 31, 2005. This represents the forty-
first consecutive quarter that the Company has paid a dividend since
completing its initial public offering in 1994.
Northwest Bancorp, Inc., headquartered in Warren, Pennsylvania, operates
134 banking locations in Pennsylvania, five banking locations in Ohio and two
banking locations in Maryland through its subsidiary, Northwest Savings Bank
and ten banking locations in New York through its subsidiary, Jamestown
Savings Bank. The Company also operates 47 consumer finance offices in
Pennsylvania and two 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 http://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)
DECEMBER 31, JUNE 30,
ASSETS 2004 2004 *
CASH AND CASH EQUIVALENTS $69,027 57,466
INTEREST-EARNING DEPOSITS IN OTHER
FINANCIAL INSTITUTIONS 95,208 174,199
FEDERAL FUNDS SOLD AND OTHER SHORT-TERM
INVESTMENTS 19,870 160,058
MARKETABLE SECURITIES AVAILABLE-FOR-
SALE (AMORTIZED COST OF $717,561 AND $858,569) 725,858 855,679
MARKETABLE SECURITIES HELD-TO-MATURITY
(MARKET VALUE OF $786,866 AND $601,738) 776,437 601,542
TOTAL CASH, INTEREST-EARNING
DEPOSITS AND MARKETABLE SECURITIES 1,686,400 1,848,944
MORTGAGE LOANS - ONE- TO FOUR-FAMILY 2,599,455 2,563,251
COMMERCIAL REAL ESTATE LOANS 484,949 446,675
CONSUMER LOANS 1,004,221 924,786
COMMERCIAL BUSINESS LOANS 146,069 149,899
TOTAL LOANS RECEIVABLE 4,234,694 4,084,611
ALLOWANCE FOR LOAN LOSSES (29,628) (30,670)
LOANS RECEIVABLE, NET 4,205,066 4,053,941
FEDERAL HOME LOAN BANK STOCK, AT COST 35,798 38,884
ACCRUED INTEREST RECEIVABLE 22,809 22,578
REAL ESTATE OWNED, NET 7,274 3,951
PREMISES AND EQUIPMENT, NET 93,753 82,417
BANK OWNED LIFE INSURANCE 102,433 100,090
GOODWILL 142,078 142,078
OTHER INTANGIBLE ASSETS 13,971 16,429
OTHER ASSETS 23,590 33,936
TOTAL ASSETS $6,333,172 6,343,248
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
NONINTEREST-BEARING DEMAND DEPOSITS $245,230 220,667
INTEREST-BEARING DEMAND DEPOSITS 652,719 668,475
SAVINGS DEPOSITS 1,838,178 1,970,303
TIME DEPOSITS 2,451,415 2,332,176
TOTAL DEPOSITS 5,187,542 5,191,621
BORROWED FUNDS 439,236 449,147
ADVANCES BY BORROWERS FOR TAXES AND
INSURANCE 22,487 29,607
ACCRUED INTEREST PAYABLE 4,071 4,280
OTHER LIABILITIES 13,661 16,059
JUNIOR SUBORDINATED DEBENTURES 102,062 102,062
TOTAL LIABILITIES 5,769,059 5,792,776
SHAREHOLDERS' EQUITY:
PREFERRED STOCK, $.10 PAR VALUE:
10,000,000 SHARES AUTHORIZED, NO
SHARES ISSUED - -
COMMON STOCK, $.10 PAR VALUE:
100,000,000 SHARES AUTHORIZED,
50,485,654 AND 47,960,287 ISSUED
AND OUTSTANDING, RESPECTIVELY 5,049 4,796
PAID-IN CAPITAL 199,924 211,545
RETAINED EARNINGS 351,691 336,164
ACCUMULATED OTHER COMPREHENSIVE INCOME:
NET UNREALIZED GAIN/ (LOSS) ON
SECURITIES AVAILABLE-FOR-SALE,
NET OF INCOME TAXES 7,449 (2,033)
564,113 550,472
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $6,333,172 6,343,248
EQUITY TO ASSETS 8.91% 8.68%
BOOK VALUE PER SHARE * $11.17 $11.48
CLOSING MARKET PRICE $25.09 $22.90
FULL TIME EQUIVALENTS 1,660 1,645
NUMBER OF OFFICES 151 149
* - Revised to reflect the acquisitions of Leeds Federal Savings Bank
and First Carnegie Deposit by Northwest Bancorp, Inc.NORTHWEST BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2004 2003 * 2004 2003 *
INTEREST INCOME:
LOANS RECEIVABLE $64,571 61,262 127,998 119,929
MORTGAGE-BACKED SECURITIES 6,590 7,276 13,286 12,327
TAXABLE INVESTMENT
SECURITIES 3,926 4,391 7,688 7,883
TAX-FREE INVESTMENT
SECURITIES 3,070 3,112 6,162 5,922
INTEREST-EARNING DEPOSITS 1,311 745 2,467 1,843
TOTAL INTEREST INCOME 79,468 76,786 157,601 147,904
INTEREST EXPENSE:
DEPOSITS 27,049 26,900 53,326 55,065
BORROWED FUNDS 7,033 7,084 14,056 14,274
TOTAL INTEREST EXPENSE 34,082 33,984 67,382 69,339
NET INTEREST INCOME 45,386 42,802 90,219 78,565
PROVISION FOR LOAN LOSSES 2,164 1,733 4,003 3,478
NET INTEREST INCOME
AFTER PROVISION
FOR LOAN LOSSES 43,222 41,069 86,216 75,087
NONINTEREST INCOME:
SERVICE CHARGES AND FEES 4,044 3,530 8,022 6,874
TRUST AND OTHER FINANCIAL
SERVICES INCOME 1,057 941 2,112 1,849
INSURANCE COMMISSION INCOME 557 192 1,021 359
GAIN ON SALE OF MARKETABLE
SECURITIES, NET 12 583 142 3,897
GAIN/ (LOSS) ON SALE OF
LOANS, NET (56) 115 (135) 401
GAIN ON SALE OF REAL
ESTATE OWNED, NET 127 507 152 1,060
INCOME FROM BANK OWNED
LIFE INSURANCE 1,095 1,152 2,240 2,148
OTHER OPERATING INCOME 665 464 1,557 850
TOTAL NONINTEREST INCOME 7,501 7,484 15,111 17,438
NONINTEREST EXPENSE:
COMPENSATION AND
EMPLOYEE BENEFITS 17,976 17,086 35,009 31,789
PREMISES AND OCCUPANCY COSTS 4,187 3,916 8,318 7,635
OFFICE OPERATIONS 2,984 2,888 5,677 5,445
PROCESSING EXPENSES 2,576 2,346 5,022 4,576
ADVERTISING 1,083 599 1,701 1,172
AMORTIZATION OF
INTANGIBLE ASSETS 1,075 1,705 2,457 1,884
OTHER EXPENSES 2,292 2,139 4,327 3,825
TOTAL NONINTEREST EXPENSE 32,173 30,679 62,511 56,326
INCOME BEFORE INCOME TAXES 18,550 17,874 38,816 36,199
FEDERAL AND STATE INCOME
TAXES 5,384 5,128 11,382 10,601
NET INCOME $13,166 12,746 27,434 25,598
BASIC EARNINGS PER SHARE $0.26 $0.27 $0.56 $0.54
DILUTED EARNINGS PER SHARE $0.26 $0.26 $0.55 $0.53
RETURN ON AVERAGE EQUITY 9.47% 9.82% 9.86% 10.51%
RETURN ON AVERAGE ASSETS 0.83% 0.81% 0.86% 0.83%
BASIC COMMON SHARES
OUTSTANDING 49,946,824 47,760,965 49,114,517 47,735,284
DILUTED COMMON SHARES
OUTSTANDING 50,469,053 48,408,272 49,634,548 48,313,712
* - Revised to reflect the acquisition of Leeds Federal Savings Bank by
Northwest Bancorp, Inc.NORTHWEST BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
SEPTEMBER 30,
2004 ** 2003 *
INTEREST INCOME:
LOANS RECEIVABLE $63,427 58,667
MORTGAGE-BACKED SECURITIES 6,696 5,051
TAXABLE INVESTMENT SECURITIES 3,762 3,492
TAX-FREE INVESTMENT SECURITIES 3,092 2,810
INTEREST-EARNING DEPOSITS 1,156 1,098
TOTAL INTEREST INCOME 78,133 71,118
INTEREST EXPENSE:
DEPOSITS 26,277 28,165
BORROWED FUNDS 7,023 7,190
TOTAL INTEREST EXPENSE 33,300 35,355
NET INTEREST INCOME 44,833 35,763
PROVISION FOR LOAN LOSSES 1,839 1,745
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 42,994 34,018
NONINTEREST INCOME:
SERVICE CHARGES AND FEES 3,978 3,344
TRUST AND OTHER FINANCIAL SERVICES INCOME 1,055 908
INSURANCE COMMISSION INCOME 464 167
GAIN ON SALE OF MARKETABLE SECURITIES, NET 130 3,314
GAIN (LOSS) ON SALE OF LOANS, NET (79) 286
GAIN ON SALE OF REAL ESTATE OWNED, NET 25 553
INCOME FROM BANK OWNED LIFE INSURANCE 1,145 996
OTHER OPERATING INCOME 892 386
TOTAL NONINTEREST INCOME 7,610 9,954
NONINTEREST EXPENSE:
COMPENSATION AND EMPLOYEE BENEFITS 17,033 14,703
PREMISES AND OCCUPANCY COSTS 4,131 3,719
OFFICE OPERATIONS 2,693 2,557
PROCESSING EXPENSES 2,446 2,230
ADVERTISING 618 573
AMORTIZATION OF INTANGIBLE ASSETS 1,382 179
OTHER EXPENSES 2,035 1,686
TOTAL NONINTEREST EXPENSE 30,338 25,647
INCOME BEFORE INCOME TAXES 20,266 18,325
FEDERAL AND STATE INCOME TAXES 5,998 5,473
NET INCOME $14,268 12,852
BASIC EARNINGS PER SHARE $0.30 $0.27
DILUTED EARNINGS PER SHARE $0.29 $0.27
RETURN ON AVERAGE EQUITY 10.26% 11.30%
RETURN ON AVERAGE ASSETS 0.90% 0.86%
BASIC COMMON SHARES OUTSTANDING 48,282,210 47,709,603
DILUTED COMMON SHARES OUTSTANDING 48,800,043 48,264,644
* - Revised to reflect the acquisition of Leeds Federal Savings Bank by
Northwest Bancorp, Inc.
** - Revised to reflect the acquisition of First Carnegie Deposit by
Northwest Bancorp, Inc.NORTHWEST BANCORP, INC. AND SUBSIDIARIES
SUPPLEMENTARY DATA
(DOLLARS IN THOUSANDS)
THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2004 2003 2004 2003
ALLOWANCE FOR LOAN LOSSES
BEGINNING BALANCE 29,999 28,409 30,670 27,166
PROVISION 2,164 1,733 4,003 3,478
CHARGE-OFFS (2,724) (1,236) (5,349) (2,837)
RECOVERIES 189 118 304 292
ACQUISITIONS - - - 925
ENDING BALANCE 29,628 29,024 29,628 29,024
NET CHARGE-OFFS TO AVERAGE LOANS,
ANNUALIZED 0.24% 0.12% 0.24% 0.14%
DECEMBER 31, JUNE 30,
2004 2003 2004
NON-PERFORMING LOANS 32,038 32,812 32,505
REAL ESTATE OWNED, NET 7,274 5,511 3,951
NON-PERFORMING ASSETS 39,312 38,323 36,456
NON-PERFORMING LOANS TO
TOTAL LOANS 0.76% 0.84% 0.80%
NON-PERFORMING ASSETS TO
TOTAL ASSETS 0.62% 0.61% 0.57%
ALLOWANCE FOR LOAN LOSSES TO
TOTAL LOANS 0.70% 0.74% 0.75%
ALLOWANCE FOR LOAN LOSSES TO
NON-PERFORMING LOANS 92.48% 88.46% 94.35%
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 December 31, 2004
Average Interest Avg.
Balance Yield/
Cost
ASSETS:
Interest earning assets:
Loans receivable (a) (b) (d) $4,193,225 $64,889 6.19%
Mortgage-backed securities (c) $753,321 $6,590 3.50%
Investment securities (c) (d) (e) $634,089 $8,495 5.36%
FHLB stock $37,262 $155 1.66%
Other interest earning deposits $297,722 $1,311 1.76%
Total interest earning assets $5,915,619 $81,440 5.51%
Noninterest earning assets (f) $427,617
TOTAL ASSETS $6,343,236
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest bearing liabilities:
Savings accounts $1,095,351 $3,648 1.33%
Now accounts $664,768 $1,234 0.74%
Money market demand accounts $777,265 $3,467 1.78%
Certificate accounts $2,420,583 $18,700 3.09%
Borrowed funds (g) $443,979 $5,035 4.54%
Debentures $102,062 $1,998 7.83%
Total interest bearing liabilities $5,504,008 $34,082 2.48%
Noninterest bearing liabilities $282,922
Total liabilities $5,786,930
Shareholders' equity $556,306
TOTAL LIABILITIES AND EQUITY $6,343,236
Net interest income/ Interest rate
spread $47,358 3.03%
Net interest earning assets/ Net
interest margin $411,611 3.20%
Ratio of interest earning assets to
interest bearing liabilities 1.07X
Three Months Ended December 31, 2003 *
Average Interest Avg.
Balance Yield/
Cost
ASSETS:
Interest earning assets:
Loans receivable (a) (b) (d) $3,866,010 $61,596 6.37%
Mortgage-backed securities (c) $925,180 $7,276 3.15%
Investment securities (c) (d) (e) $749,852 $9,341 4.98%
FHLB stock $38,482 $138 1.43%
Other interest earning deposits $326,546 $745 0.91%
Total interest earning assets $5,906,070 $79,096 5.36%
Noninterest earning assets (f) $401,718
TOTAL ASSETS $6,307,788
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest bearing liabilities:
Savings accounts $1,002,197 $3,485 1.39%
Now accounts $701,347 $1,352 0.77%
Money market demand accounts $903,552 $3,703 1.64%
Certificate accounts $2,390,093 $18,360 3.07%
Borrowed funds (g) $453,173 $5,153 4.55%
Debentures $102,062 $1,931 7.57%
Total interest bearing liabilities $5,552,424 $33,984 2.45%
Noninterest bearing liabilities $235,953
Total liabilities $5,788,377
Shareholders' equity $519,411
TOTAL LIABILITIES AND EQUITY $6,307,788
Net interest income/ Interest rate
spread $45,112 2.91%
Net interest earning assets/ Net
interest margin $353,646 3.06%
Ratio of interest earning assets to
interest bearing liabilities 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.
* - Revised to reflect the acquisition of Leeds Federal by Northwest
Bancorp, Inc.
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.
Six Months Ended December 31, 2004
Average Interest Avg.
Balance Yield/
Cost
ASSETS:
Interest earning assets:
Loans receivable (a) (b) (d) $4,157,376 $128,623 6.19%
Mortgage-backed securities (c) $772,434 $13,286 3.44%
Investment securities (c) (d) (e) $632,350 $16,877 5.34%
FHLB stock $38,073 $291 1.53%
Other interest earning deposits $324,120 $2,467 1.52%
Total interest earning assets $5,924,353 $161,544 5.45%
Noninterest earning assets (f) $423,843
TOTAL ASSETS $6,348,196
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest bearing liabilities:
Savings accounts $1,088,531 $7,325 1.35%
Now accounts $665,356 $2,357 0.71%
Money market demand accounts $832,161 $7,167 1.72%
Certificate accounts $2,384,768 $36,477 3.06%
Borrowed funds (g) $446,854 $10,092 4.52%
Debentures $102,062 $3,964 7.77%
Total interest bearing liabilities $5,519,732 $67,382 2.44%
Noninterest bearing liabilities $272,046
Total liabilities $5,791,778
Shareholders' equity $556,418
TOTAL LIABILITIES AND EQUITY $6,348,196
Net interest income/ Interest rate
spread $94,162 3.01%
Net interest earning assets/ Net
interest margin $404,621 3.18%
Ratio of interest earning assets to
interest bearing liabilities 1.07X
Six Months Ended December 31, 2003*
Average Interest Avg.
Balance Yield/
Cost
ASSETS:
Interest earning assets:
Loans receivable (a) (b) (d) $3,716,365 $120,611 6.49%
Mortgage-backed securities (c) $933,156 $12,327 2.64%
Investment securities (c) (d) (e) $668,102 $16,634 4.98%
FHLB stock $39,810 $348 1.75%
Other interest earning deposits $414,612 $1,843 0.89%
Total interest earning assets $5,772,045 $151,763 5.26%
Noninterest earning assets (f) $388,223
TOTAL ASSETS $6,160,268
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest bearing liabilities:
Savings accounts $1,023,196 $7,150 1.40%
Now accounts $702,835 $3,101 0.88%
Money market demand accounts $821,035 $6,896 1.68%
Certificate accounts $2,316,311 $37,918 3.27%
Borrowed funds (g) $480,392 $10,476 4.36%
Debentures $100,531 $3,798 7.56%
Total interest bearing liabilities $5,444,300 $69,339 2.55%
Noninterest bearing liabilities $228,769
Total liabilities $5,673,069
Shareholders' equity $487,199
TOTAL LIABILITIES AND EQUITY $6,160,268
Net interest income/ Interest rate
spread $82,424 2.71%
Net interest earning assets/ Net
interest margin $327,745 3.03%
Ratio of interest earning assets to
interest bearing liabilities 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.
* - Revised to reflect the acquisition of Leeds Federal by Northwest
Bancorp, Inc.
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, 2004 **
Average Interest Avg.
Balance Yield/
Cost
ASSETS:
Interest earning assets:
Loans receivable (a) (b) (d) $4,121,527 $63,734 6.19%
Mortgage-backed securities (c) $791,546 $6,696 3.38%
Investment securities (c) (d) (e) $630,611 $8,382 5.32%
FHLB stock $38,884 $136 1.40%
Other interest earning deposits $350,517 $1,156 1.32%
Total interest earning assets $5,933,085 $80,104 5.40%
Noninterest earning assets (f) $419,887
TOTAL ASSETS $6,352,972
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest bearing liabilities:
Savings accounts $1,081,711 $3,677 1.36%
Now accounts $665,945 $1,123 0.67%
Money market demand accounts $887,056 $3,700 1.67%
Certificate accounts $2,348,952 $17,777 3.03%
Borrowed funds (g) $449,730 $5,057 4.50%
Debentures $102,062 $1,966 7.71%
Total interest bearing liabilities $5,535,456 $33,300 2.41%
Noninterest bearing liabilities $261,171
Total liabilities $5,796,627
Shareholders' equity $556,345
TOTAL LIABILITIES AND EQUITY $6,352,972
Net interest income/ Interest rate
spread $46,804 2.99%
Net interest earning assets/ Net
interest margin $397,629 3.16%
Ratio of interest earning assets to
interest bearing liabilities 1.07X
* - Revised to reflect the acquisition of Leeds Federal by Northwest
Bancorp, Inc.
** - Revised to reflect the acquisition of First Carnegie Deposit by
Northwest Bancorp, Inc.
Three Months Ended September 30, 2003 *
Average Interest Avg.
Balance Yield/
Cost
ASSETS:
Interest earning assets:
Loans receivable (a) (b) (d) $3,566,719 $59,015 6.62%
Mortgage-backed securities (c) $941,132 $5,051 2.15%
Investment securities (c) (d) (e) $586,350 $7,293 4.98%
FHLB stock $41,137 $210 2.04%
Other interest earning deposits $502,678 $1,098 0.87%
Total interest earning assets $5,638,016 $72,667 5.16%
Noninterest earning assets (f) $374,544
TOTAL ASSETS $6,012,560
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest bearing liabilities:
Savings accounts $1,044,194 $3,665 1.40%
Now accounts $704,322 $1,749 0.99%
Money market demand accounts $738,518 $3,194 1.73%
Certificate accounts $2,242,528 $19,557 3.49%
Borrowed funds (g) $507,612 $5,322 4.19%
Debentures $99,000 $1,868 7.55%
Total interest bearing liabilities $5,336,174 $35,355 2.65%
Noninterest bearing liabilities $221,585
Total liabilities $5,557,759
Shareholders' equity $454,801
TOTAL LIABILITIES AND EQUITY $6,012,560
Net interest income/ Interest rate
spread $37,312 2.51%
Net interest earning assets/ Net
interest margin $301,842 2.65%
Ratio of interest earning assets to
interest bearing liabilities 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.
* - Revised to reflect the acquisition of Leeds Federal by Northwest
Bancorp, Inc.
** - Revised to reflect the acquisition of First Carnegie Deposit by
Northwest Bancorp, Inc.SOURCE Northwest Savings Bank
-0- 01/20/2005
/CONTACT: William J. Wagner, President and Chief Executive Officer, or
William W. Harvey, Jr., Senior Vice President and Chief Financial Officer of
Northwest Savings Bank, +1-814-726-2140/
/Web site: http://www.northwestsavingsbank.com /
(NWSB)
CO: Northwest Savings Bank; Northwest Bancorp
ST: Pennsylvania, Ohio
IN: FIN
SU: ERN DIV
WB-JK
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9200 01/20/200512:06 ESThttp://www.prnewswire.com