WARREN, Pa. - Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended June 30 of $16.4 million, or $0.17 per diluted share.
This represents an increase of $1.4 million, or 9.1 percent, over the same quarter last year when net income was $15.0 million, or $0.15 per diluted share, and an increase of $1.2 million, or 7.8 percent, over the quarter ended March 31 when net income was $15.2 million, or $0.16 per diluted share. The annualized returns on average shareholders' equity and average assets for the current quarter were 5.63 percent and 0.82 percent compared to 4.81 percent and 0.74 percent for the same quarter last year and 5.29 percent and 0.76 percent for the quarter ended March 31.
The company also announced its Board of Directors declared a quarterly cash dividend of $0.12 per share payable on Aug. 16 to shareholders of record as of Aug. 2. This represents the 71st consecutive quarter in which the company has paid a cash dividend.
"In the most recent quarter we continued to see many positive trends in our operations," William J. Wagner, President and CEO, said. "We were pleased with the stability of our margin despite the continued challenges of the interest rate environment and competitive pricing pressures. During the quarter we experienced net loan growth of approximately $65 million, while asset quality continued to improve. Delinquent and non-accrual loans at the end of the quarter were at the lowest levels since the second quarter of 2008. Finally, through the hard work and dedication of our Board of Directors and employees in strengthening our compliance management system, we were pleased to announce the termination of the FDIC Consent Order on July 6, 2012."
Net interest income decreased by $718,000, or 1.1 percent, to $66.0 million for the quarter ended June 30 from $66.7 million for the quarter ended June 30, 2011, which was primarily attributable to a decrease in interest income from loans of $2.6 million, or 3.2 percent, and from investment securities of $2.5 million, or 25.9 percent. Partially offsetting this decrease was a $4.3 million, or 27.7 percent decrease in interest expense on deposit accounts. These changes from the previous year were primarily due to decreases in market interest rates.
The provision for loan losses decreased by $3.4 million, or 40.7 percent, to $5.0 million for the quarter ended June 30 from $8.4 million for the quarter ended June 30, 2011. As of June 30, the allowance for loan losses was $70.1 million, or 1.24 percent of total loans, compared to $75.5 million, or 1.37 percent of total loans, as of June 30, 2011. Loans 90 days or more delinquent decreased to $84.7 million as of June 30, compared to $90.2 million as of March 31 and $115.8 million as of June 30, 2011. Net charge-offs for the quarter ended June 30 were $7.8 million, or 0.55 percent of average loans on an annualized basis, compared to $9.4 million, or 0.68 percent of average loans on an annualized basis, in the same quarter last year.
Non-interest income decreased by $425,000, or 2.8 percent, to $14.8 million for the quarter ended June 30 from $15.3 million for the quarter ended June 30, 2011, due primarily to a decrease in service charges and fees of $619,000. This decrease is primarily attributable to changes in overdraft fees assessed on transactional deposit accounts.
Non-interest expense decreased by $524,000, or 1.0 percent, to $52.0 million for the quarter ended June 30, from $52.5 million for the quarter ended June 30, 2011, due primarily to a decrease in compensation and employee benefits of $2.3 million. This decrease is primarily the result of a relatively high level of stock benefits being granted in the previous year. Partially offsetting this decrease was an increase in marketing expense of $1.7 million, which was due to the timing of several campaigns designed to increase lending activity and promote brand awareness.
Net income for the six-month period ended June 30 of $31.5 million, or $0.33 per diluted share, represents a decrease of $714,000, or 2.2 percent compared to net income of $32.3 million, or $0.31 per diluted share, for the six-month period ended June 30, 2011. The annualized returns on average shareholders' equity and average assets were 5.44 percent and 0.79 percent, respectively, for the current six-month period compared to 5.07 percent and 0.79 percent, respectively, in the prior year.
Headquartered in Warren, Pa., Northwest Bancshares, Inc. is the holding company of Northwest Savings Bank. Founded in 1896, Northwest Savings Bank is a full-service financial institution offering a complete line of business and personal banking products as well as benefits and wealth management services. Northwest operates 167 community banking offices in Pennsylvania, New York, Ohio and Maryland and 52 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. Additional information regarding Northwest Bancshares, Inc. can be accessed on-line at www.northwestsavingsbank.com.