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25.01.2016 22:04
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Northwest Bancshares, Inc. Announces Fourth Quarter 2015 Earnings and Increase in Quarterly Dividend
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PR Newswire
WARREN, Penn., Jan. 25, 2016
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 Werbung Mehr Nachrichten zur Northwest Bancshares Aktie kostenlos abonnieren
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