Northwest Bancshares announces 2Q report
Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended June 30, 2014 of $12.7 million, or $0.14 per diluted share. This represents a decrease of $763,000, or 5.7%, compared to the same quarter last year when net income was $13.5 million, or $0.15 per diluted share, and a decrease of $1.9 million, or 13.1%, compared to the quarter ended March 31, 2014 when net income was $14.6 million, or $0.16 per diluted share. The annualized returns on average shareholders’ equity and average assets for the quarter ended June 30, 2014 were 4.77% and 0.64% compared to 4.79% and 0.68% for the same quarter last year and 5.16% and 0.75% for the quarter ended March 31, 2014.
The company also announced that its board of directors declared a quarterly cash dividend of $0.13 per share payable on Aug. 14, to shareholders of record as of July 31. This represents the 79th consecutive quarter in which the company has paid a cash dividend.
William J. Wagner, president and CEO, said, “The deterioration of several commercial credits negatively impacted what was otherwise consistent core earnings highlighted by a 2.1% increase in net interest income compared to the previous quarter. This improvement was the result of loan growth of nearly $35 million and an increase in checking accounts of more than $38 million. Looking at the other elements of income, we are pleased to report that noninterest income increased by 27.7 % while noninterest expense was held to just a 1.9% increase over the previous year. Finally, we were excited to be recognized for the fourth time in the last five years by J.D. Power & Associates as the ‘Highest Rated Financial Institution for Customer Satisfaction in the Mid-Atlantic Region’. Further recognition was received from Forbes who named Northwest as ‘One of America’s 50 Most Trustworthy Financial Companies’ and from Keefe, Bruyette & Woods who included Northwest as one of 31 companies on their ‘Bank Honor Roll’.”
Net interest income decreased by $1.2 million, or 1.9%, to $62.1 million for the quarter ended June 30, 2014, from $63.3 million for the quarter ended June 30, 2013, as interest income on both loans receivable and investment securities decreased from the prior year. These decreases were partially offset by a $1.2 million decrease in interest paid on deposit accounts and borrowed funds. These changes from the previous year were due primarily to the continued low level of market interest rates. Net interest income, however, improved by $1.3 million, or 2.1%, over the prior quarter due primarily to growth of $24.7 million, or 1.2%, in commercial loans.
The provision for loan losses increased by $2.9 million, or 53.3%, to $8.3 million for the quarter ended June 30, 2014, from $5.4 million for the quarter ended June 30, 2013 and increased by $800,000 compared to the quarter ended March 31, 2014.
Headquartered in Warren, Northwest Bancshares, Inc. is the holding company of Northwest Savings Bank.