NWSB Northwest Bancorp (MM)

WARREN, Pa., Oct. 22 /PRNewswire-FirstCall/ -- Northwest Bancorp, Inc. (NASDAQ:NWSB) announced net income for the quarter ended September 30, 2009 of $12.1 million, or $0.25 per diluted share. This represents an increase of $2.3 million, or 22.7%, over the same quarter last year when net income was $9.8 million, or $0.20 per diluted share. The annualized returns on average shareholders' equity and average assets for the current quarter were 7.48% and 0.68% compared to 6.31% and 0.57% for the same quarter last year. In making this announcement, William J. Wagner, President and CEO, noted, "We are pleased to report positive earnings when many institutions in our industry are reporting operating losses. In addition, our core earnings components for the quarter were strong with a net interest margin of 3.54% of average assets, non-interest income of 0.79% of average assets, and noninterest expense of 2.53% of average assets. Unfortunately, economic conditions have caused our Company to record higher provisions for loan losses which has greatly impacted earnings over the past year. We also continued to improve our balance sheet, as we experienced significant growth in home equity and commercial loans during the quarter while also realizing good growth in deposits, with an emphasis on checking accounts and savings accounts." The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.22 per share payable on November 12, 2009, to shareholders of record as of November 2, 2009. This represents the 60th consecutive quarter in which the Company has paid a cash dividend. Net interest income decreased by $700,000, or 1.2%, for the quarter ended September 30, 2009 compared to the same quarter last year. Net interest margin for the quarter ended September 30, 2009 was 3.54% compared to 3.71% for the quarter ended September 30, 2008. The decrease resulted primarily from the Company carrying, on average, $298.2 million more in overnight funds than in the previous year earning an average rate of 0.30% compared to an average rate of 2.69% in the previous year. As a result of strong deposit growth combined with a reduction of the Company's mortgage loan portfolio the Company was carrying historically high levels of overnight funds. The provision for loan losses increased by $2.8 million to $9.8 million for the quarter ended September 30, 2009 compared to $7.0 million for the same quarter last year. This increase is primarily the result of continued weakness in economic conditions and the resulting impact on the Company's borrowers. Loans with payments 90 days or more delinquent have increased to $117.1 million at September 30, 2009 from $99.2 million at December 31, 2008 and $94.9 million at September 30, 2008. Loans 90 days or more delinquent were $122.6 million at June 30, 2009. Net losses from loans charged-off were $8.8 million for the quarter ended September 30, 2009 compared to $2.3 million for the quarter ended September 30, 2008. Net losses from loans charged-off were $14.5 million and $6.5 million for the nine-month periods ended September 30, 2009 and 2008, respectively. Noninterest expense increased by $2.3 million, or 5.3%, to $45.0 million for the quarter ended September 30, 2009 from $42.7 million for the quarter ended September 30, 2008 primarily due to increases in FDIC insurance assessments and marketing expenses. Federal deposit insurance premiums increased by $1.4 million, or 133.4%, as the Company was able to use available credits in the prior year to partially offset premiums. Marketing expenses increased by $926,000, or 78.7%, to $2.1 million for the quarter ended September 30, 2009 from $1.2 million for the quarter ended September 30, 2008. The increase is primarily the result of the Company's marketing campaign focused on the acquisition of checking account relationships. Net income for the nine-month period ended September 30, 2009 of $31.6 million, or $0.65 per diluted share, represents a decrease of $5.2 million, or 14.2% compared to net income of $36.9 million, or $0.76 per diluted share, for the nine-month period ended September 30, 2008. This decrease resulted primarily from the Company recording a provision for loan losses which was $14.7 million, or 116.4%, higher than the previous year. The increase in the provision was considered necessary given the current economic environment. Also contributing to the decrease in income was a $3.3 million special assessment by the FDIC. Partially offsetting these reductions was an $11.8 million, or 7.4%, increase in net interest income. The annualized returns on average shareholders' equity and average assets were 6.68% and 0.60%, respectively, for the current nine-month period compared to 7.92% and 0.72%, respectively, in the prior year. Founded in 1896 and headquartered in Warren, Pennsylvania, Northwest Bancorp, Inc., through its subsidiary Northwest Savings Bank, currently operates 170 community-banking locations in Pennsylvania, New York, Ohio, Maryland and Florida. Northwest Savings Bank is a full-service financial institution offering a complete line of retail and business banking products as well as investment management and trust services. The Company also operates 50 consumer finance offices in Pennsylvania through its subsidiary, Northwest Consumer Discount Company. Northwest Bancorp, Inc.'s stock is listed on the NASDAQ Global Select Market. Additional information regarding Northwest Bancorp, Inc. can be accessed on-line at http://www.northwestsavingsbank.com/. Forward-Looking Statements - This press release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancorp, 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 that could result from an economic downturn; (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 an increase in commercial real-estate and business loans and non-performing 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 Bancorp, Inc. and Subsidiaries Consolidated Statements of Financial Condition (Dollars in thousands, except per share amounts) (Unaudited) September 30, December 31, Assets 2009 2008 ------ ---- ---- Cash and cash equivalents $60,308 55,815 Interest-earning deposits in other financial institutions 219,227 16,795 Federal funds sold and other short-term investments 631 7,312 Marketable securities available-for-sale (amortized cost of $1,111,234 and $1,144,435) 1,126,430 1,139,170 --------- --------- Total cash, interest- earning deposits and marketable securities 1,406,596 1,219,092 Loans held for sale 17,871 18,738 Mortgage loans - one- to four- family 2,308,948 2,447,506 Home equity loans 1,041,912 1,013,876 Consumer loans 291,015 289,602 Commercial real estate loans 1,177,722 1,071,182 Commercial business loans 380,128 355,917 ------- ------- Total loans receivable 5,217,596 5,196,821 Allowance for loan losses (67,775) (54,929) ------- ------- Loans receivable, net 5,149,821 5,141,892 Federal Home Loan Bank stock, at cost 63,143 63,143 Accrued interest receivable 26,508 27,252 Real estate owned, net 19,838 16,844 Premises and Equipment, net 123,511 115,842 Bank owned life insurance 127,075 123,479 Goodwill 171,363 171,363 Mortgage servicing rights 8,201 6,280 Other intangible assets 5,024 7,395 Other assets 30,961 37,659 ------ ------ Total assets $7,132,041 6,930,241 ========== ========= Liabilities and Shareholders' equity ------------------------------------ Liabilities: Noninterest-bearing demand deposits $448,853 394,011 Interest-bearing demand deposits 744,596 706,120 Savings deposits 1,609,404 1,480,620 Time deposits 2,584,979 2,457,460 --------- --------- Total deposits 5,387,832 5,038,211 Borrowed funds 896,644 1,067,945 Advances by borrowers for taxes and insurance 13,140 26,190 Accrued interest payable 4,627 5,194 Other liabilities 73,784 70,663 Junior subordinated debentures 103,094 108,254 ------- ------- Total liabilities 6,479,121 6,316,457 Shareholders' equity: Preferred stock, $0.10 par value: 50,000,000 shares authorized, no shares issued - - Common stock, $0.10 par value: 500,000,000 shares authorized, 51,266,340 and 51,244,974 issued, respectively 5,127 5,124 Paid-in-capital 219,831 218,332 Retained earnings 511,792 490,326 Accumulated other comprehensive loss (14,407) (30,575) Treasury stock of 2,742,800 shares, at cost (69,423) (69,423) ------- ------- Total shareholders' equity 652,920 613,784 ------- ------- Total liabilities and shareholders' equity $7,132,041 6,930,241 ========== ========= Equity to assets 9.15% 8.86% Tangible common equity to assets 6.74% 6.36% Book value per share $13.46 $12.65 Tangible book value per share $9.64 $8.84 Closing market price per share $22.84 $21.38 Full time equivalent employees 1,862 1,860 Number of banking offices 170 167 Northwest Bancorp, Inc. and Subsidiaries Consolidated Statements of Income - Unaudited (Dollars in thousands, except per share amounts) Three months ended Nine months ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Interest income: Loans receivable $79,637 82,113 240,400 243,522 Mortgage-backed securities 6,580 9,180 20,858 25,864 Taxable investment securities 1,242 2,660 4,138 9,726 Tax-free investment securities 2,716 3,200 8,376 9,221 Interest-earning deposits 253 208 415 2,714 --- --- --- ----- Total interest income 90,428 97,361 274,187 291,047 Interest expense: Deposits 23,472 30,521 72,555 109,802 Borrowed funds 10,114 9,298 30,418 21,827 ------ ----- ------ ------ Total interest expense 33,586 39,819 102,973 131,629 Net interest income 56,842 57,542 171,214 159,418 Provision for loan losses 9,830 6,950 27,347 12,639 ----- ----- ------ ------ Net interest income after provision for loan losses 47,012 50,592 143,867 146,779 Noninterest income: Impairment losses on securities (3,727) (10,879) (12,417) (12,351) Noncredit related losses on securities not expected to be sold (recognized in other comprehensive income) 2,836 - 7,236 - ----- - ----- - Net impairment losses (891) (10,879) (5,181) (12,351) Gain on sale of investments, net 97 2,867 377 3,838 Service charges and fees 8,883 8,749 24,867 24,540 Trust and other financial services income 1,496 1,696 4,349 5,227 Insurance commission income 731 594 2,039 1,757 Gain/ (loss) on sale of real estate owned, net (62) (98) (3,934) (439) Income from bank owned life insurance 1,208 1,215 3,596 3,584 Mortgage banking income 1,168 147 4,892 818 Non-cash recovery of MSRs 160 - 1,550 - Other operating income 1,195 819 2,886 2,958 ----- --- ----- ----- Total noninterest income 13,985 5,110 35,441 29,932 Noninterest expense: Compensation and employee benefits 23,292 22,755 69,957 67,721 Premises and occupancy costs 5,319 5,481 16,521 16,524 Office operations 3,270 3,532 9,575 10,052 Processing expenses 5,221 4,872 15,483 13,791 Marketing expenses 2,102 1,176 5,046 3,585 Federal deposit insurance premiums 2,381 1,020 6,161 2,864 FDIC Special Assessment - - 3,288 - Professional services 668 584 1,899 1,914 Amortization of intangible assets 701 953 2,371 3,539 Loss on early extinguishment of debt - - - 705 Other expense 2,033 2,366 5,956 5,959 ----- ----- ----- ----- Total noninterest expense 44,987 42,739 136,257 126,654 ------ ------ ------- ------- Income before income taxes 16,010 12,963 43,051 50,057 Income taxes 3,956 3,140 11,404 13,170 ----- ----- ------ ------ Net income $12,054 9,823 31,647 36,887 ======= ===== ====== ====== Basic earnings per share $0.25 $0.20 $0.65 $0.76 Diluted earnings per share $0.25 $0.20 $0.65 $0.76 Annualized return on average equity 7.48% 6.31% 6.68% 7.92% Annualized return on average assets 0.68% 0.57% 0.60% 0.72% Basic common shares outstanding 48,469,337 48,372,190 48,447,944 48,353,864 Diluted common shares outstanding 48,669,298 48,628,776 48,594,860 48,598,407 Northwest Bancorp, Inc. and Subsidiaries Supplementary data - Unaudited (Dollars in thousands) Three months Nine months ended September 30, ended September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Allowance for loan losses Beginning balance $66,777 43,293 54,929 41,784 Provision 9,830 6,950 27,347 12,639 Charge-offs mortgage (417) (433) (1,300) (1,181) Charge-offs consumer (1,679) (2,038) (4,515) (4,868) Charge-offs commercial (7,176)* (647) (9,701) (2,065) Recoveries 440 799 1,015 1,615 --- --- ----- ----- Ending balance $67,775 47,924 67,775 47,924 ======= ====== ====== ====== * - Primarily attributable to three credits. $2.1 million related to a marina in Florida, $1.8 million related to a moving/ storage company in central Pennsylvania and $1.8 million related to a land development in Delaware. Net charge-offs to average loans, annualized 0.68% 0.18% 0.40% 0.22% ------------------- ---- ---- ---- ---- September 30, December 31, 2009 2008 2008 2007 ---- ---- ---- ---- Nonperforming loans $117,138 94,948 99,203 49,610 Real estate owned, net 19,838 8,698 16,844 8,667 ------ ----- ------ ----- Nonperforming assets $136,976 103,646 116,047 58,277 ======== ======= ======= ====== Nonperforming loans to total loans 2.27% 1.85% 1.91% 1.03% Nonperforming assets to total assets 1.92% 1.50% 1.67% 0.87% Allowance for loan losses to total loans 1.32% 0.93% 1.06% 0.86% Allowance for loan losses to nonperforming loans 57.86% 50.47% 55.37% 84.22% ------------------------ ----- ----- ----- ----- Northwest Bancorp, Inc. and Subsidiaries Supplementary data (Dollars in thousands) Loans past due schedule (Number of loans and dollar amount of loans) (Unaudited) September 30, December 31, --------------- ------------------------------------ 2009 * 2008 * 2007 * ---- ---- ---- Loans past due 30 days to 59 days: One- to four- family residential loans 73 $4,185 0.2% 392 $32,988 1.3% 361 $27,270 1.1% Consumer loans 983 9,427 0.7% 1,157 11,295 0.9% 1,331 10,550 0.8% Multifamily and commercial RE loans 77 15,177 1.3% 99 18,901 1.8% 88 11,331 1.3% Commercial business loans 63 7,684 2.0% 86 7,700 2.2% 70 9,947 3.0% -- ----- --- -- ----- --- -- ----- Total loans past due 30 days to 59 days 1,196 $36,473 0.7% 1,734 $70,884 1.4% 1,850 $59,098 1.2% ===== ======= === ===== ======= === ===== ======= Loans past due 60 days to 89 days: One- to four- family residential loans 84 $5,662 0.2% 101 $7,599 0.3% 99 $6,077 0.3% Consumer loans 387 2,702 0.2% 379 2,836 0.2% 437 2,676 0.2% Multifamily and commercial RE loans 60 11,766 1.0% 54 8,432 0.8% 41 4,984 0.6% Commercial business loans 33 3,323 0.9% 45 3,801 1.1% 34 2,550 0.8% -- ----- --- -- ----- --- -- ----- Total loans past due 60 days to 89 days 564 $23,453 0.4% 579 $22,668 0.4% 611 $16,287 0.3% === ======= === === ======= === === ======= Loans past due 90 days or more: One- to four- family residential loans 288 $30,846 1.3% 223 $20,435 0.8% 193 $12,542 0.5% Consumer loans 662 11,551 0.9% 687 9,756 0.7% 744 7,582 0.6% Multifamily and commercial RE loans 202 49,336 4.2% 155 43,828 4.1% 105 24,323 2.9% Commercial business loans 127 25,405 6.7% 114 25,184 7.1% 84 5,163 1.6% --- ------ --- --- ------ --- -- ----- Total loans past due 90 days or more 1,279 $117,138 2.2% 1,179 $99,203 1.9% 1,126 $49,610 1.0% ===== ======== === ===== ======= === ===== ======= * - Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding. Northwest Bancorp, Inc. and Subsidiaries Analysis of loan portfolio by geographic location as of September 30, 2009 - Unaudited: (Dollars in thousands) Loans outstanding: ------------------ Mortgage (1) Consumer (2) -------- -------- Pennsylvania $1,991,846 85.6% 1,202,649 90.2% New York 133,041 5.7% 75,365 5.7% Ohio 15,708 0.7% 13,011 1.0% Maryland 151,961 6.5% 29,794 2.2% Florida 34,263 1.5% 12,108 0.9% ------ --- ------ --- Total $2,326,819 100.0% 1,332,927 100.0% ========== ===== ========= ===== Commercial (3) Total (4) ---------- ----- Pennsylvania 1,030,202 66.1% 4,224,697 80.9% New York 284,845 18.3% 493,251 9.5% Ohio 8,750 0.6% 37,469 0.7% Maryland 173,349 11.1% 355,104 6.8% Florida 60,704 3.9% 107,075 2.1% ------ --- ------- --- Total 1,557,850 100.0% 5,217,596 100.0% ========= ===== ========= ===== (1) - Percentage of total mortgage loans (2) - Percentage of total consumer loans (3) - Percentage of total commercial loans (4) - Percentage of total loans Loans 90 or more past due: -------------------------- Mortgage (5) Consumer (6) -------- -------- Pennsylvania $21,470 1.1% 8,983 0.7% New York 338 0.3% 337 0.4% Ohio 196 1.2% 70 0.5% Maryland 702 0.5% 578 1.9% Florida 8,140 23.8% 1,583 13.1% ----- ---- ----- ---- Total $30,846 1.3% 11,551 0.9% ======= === ====== === Commercial (7) Total (8) ---------- ----- Pennsylvania 47,295 4.6% 77,748 1.8% New York 966 0.3% 1,641 0.3% Ohio 496 5.7% 762 2.0% Maryland 11,931 6.9% 13,211 3.7% Florida 14,053 23.2% 23,776 22.2% ------ ---- ------ ---- Total 74,741 4.8% 117,138 2.2% ====== === ======= === (5) - Percentage of mortgage loans in that geographic area (6) - Percentage of consumer loans in that geographic area (7) - Percentage of commercial loans in that geographic area (8) - Percentage of total loans in that geographic area Northwest Bancorp, Inc. and Subsidiaries Supplementary data - Unaudited (Dollars in thousands) Marketable securities available-for-sale as of September 30, 2009: ------------------------------------------------------------------ Gross Gross unrealized unrealized Amortized holding holding Market cost gains losses value --------- ---------- ---------- ---------- Debt issued by the U.S. government and agencies: Due in one year or less $78 - (1) 77 Debt issued by government sponsored enterprises: Due in one year - five years 1,974 174 - 2,148 Due in five years - ten years 22,175 1,260 - 23,435 Due after ten years 52,525 3,658 (2) 56,181 Equity securities 954 405 (77) 1,282 Municipal securities: Due in one year - five years 2,872 75 - 2,947 Due in five years - ten years 38,744 1,548 - 40,292 Due after ten years 208,558 6,886 (384) 215,060 Corporate trust preferred securities: Due in one year - five years 500 - - 500 Due after ten years 27,176 165 (11,430) 15,911 Mortgage-backed securities: Fixed rate pass-through 156,847 7,698 (5) 164,540 Variable rate pass-through 233,832 7,869 (238) 241,463 Fixed rate CMO 42,750 964 (1,484) 42,230 Variable rate CMO 322,249 1,907 (3,792) 320,364 --------- ---------- ---------- ---------- Total mortgage-backed securities 755,678 18,438 (5,519) 768,597 --------- ---------- ---------- ---------- Total marketable securities available- for-sale $1,111,234 32,609 (17,413) 1,126,430 ========= ========== ========== ========== Issuers of mortgage-backed securities as of September 30, 2009: --------------------------------------------------------------- Fannie Mae $259,653 7,705 (507) 266,851 Ginnie Mae 130,807 1,697 (361) 132,143 Freddie Mac 333,282 9,036 (881) 341,437 Non-agency 31,936 - (3,770) 28,166 --------- ---------- ---------- ---------- Total $755,678 18,438 (5,519) 768,597 ========= ========== ========== ========== Average Balance Sheet - Unaudited (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, -------------------------------- 2009 -------- Average Interest Avg. Balance Yield/ Cost ASSETS: ------- Interest-earning assets: Loans receivable (a) (b) (d) $5,168,204 80,006 6.15% Mortgage-backed securities ( c ) 714,548 6,579 3.68% Investment securities ( c ) (d) (e) 351,741 5,422 6.17% FHLB stock 63,143 - 0.00% Other interest-earning deposits 328,447 253 0.30% ------- --- Total interest-earning assets 6,626,083 92,260 5.54% Noninterest earning assets (f) 512,804 ------- TOTAL ASSETS $7,138,887 ========== LIABILITIES AND SHAREHOLDERS' EQUITY: ------------------------------------- Interest-bearing liabilities: Savings accounts $842,069 1,592 0.75% Interest-bearing demand accounts 746,125 555 0.30% Money market accounts 766,742 1,908 0.99% Certificate accounts 2,578,266 19,418 2.99% Borrowed funds (g) 892,081 8,665 3.85% Junior subordinated debentures 103,094 1,450 5.50% ------- ----- Total interest-bearing liabilities 5,928,377 33,588 2.25% Noninterest bearing liabilities 566,250 ------- Total liabilities 6,494,627 Shareholders' equity 644,260 ------- TOTAL LIABILITIES AND EQUITY $7,138,887 ========== Net interest income/ Interest rate spread 58,672 3.29% Net interest-earning assets/ Net interest margin $697,706 3.54% Ratio of interest-earning assets to interest-bearing liabilities 1.12X 2008 -------- Average Interest Avg. Balance Yield/ Cost ASSETS: ------- Interest-earning assets: Loans receivable (a) (b) (d) 5,082,312 82,655 6.44% Mortgage-backed securities ( c ) 789,144 9,180 4.65% Investment securities ( c ) (d) (e) 490,107 7,187 5.87% FHLB stock 53,187 397 2.99% Other interest-earning deposits 30,234 208 2.69% ------ --- Total interest-earning assets 6,444,984 99,627 6.14% Noninterest earning assets (f) 486,381 ------- TOTAL ASSETS 6,931,365 ========= LIABILITIES AND SHAREHOLDERS' EQUITY: ------------------------------------ Interest-bearing liabilities: Savings accounts 798,662 2,358 1.17% Interest-bearing demand accounts 731,459 1,415 0.77% Money market accounts 730,993 3,122 1.70% Certificate accounts 2,592,183 23,626 3.63% Borrowed funds (g) 854,809 8,140 3.79% Junior subordinated debentures 108,279 1,158 4.18% ------- ----- Total interest-bearing liabilities 5,816,385 39,819 2.72% Noninterest bearing liabilities 492,265 ------- Total liabilities 6,308,650 Shareholders' equity 622,715 ------- TOTAL LIABILITIES AND EQUITY 6,931,365 ========= Net interest income/ Interest rate spread 59,808 3.42% Net interest-earning assets/ Net interest margin 628,599 3.71% Ratio of interest-earning assets to interest-bearing liabilities 1.11X (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, which was not material. ( 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 Fannie Mae and Freddie Mac 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 - Unaudited (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. Nine months ended September 30, ------------------------------- 2009 -------- Average Interest Avg. Balance Yield/ Cost ASSETS: ------- Interest-earning assets: Loans receivable (a) (b) (d) $5,185,359 241,604 6.19% Mortgage-backed securities ( c ) 712,593 20,858 3.90% Investment securities ( c ) (d) (e) 364,437 17,025 6.23% FHLB stock 63,143 - 0.00% Other interest-earning deposits 232,852 415 0.24% ------- --- Total interest-earning assets 6,558,384 279,902 5.67% Noninterest earning assets (f) 491,480 ------- TOTAL ASSETS $7,049,864 ========== LIABILITIES AND SHAREHOLDERS' EQUITY: ------------------------------------- Interest-bearing liabilities: Savings accounts $822,401 4,650 0.76% Interest-bearing demand accounts 733,714 2,102 0.38% Money market accounts 733,956 6,703 1.22% Certificate accounts 2,526,660 59,101 3.13% Borrowed funds (g) 948,981 26,020 3.67% Junior subordinated debentures 106,531 4,398 5.44% ------- ----- Total interest-bearing liabilities 5,872,243 102,974 2.34% Noninterest bearing liabilities 545,623 ------- Total liabilities 6,417,866 Shareholders' equity 631,998 ------- TOTAL LIABILITIES AND EQUITY $7,049,864 ========== Net interest income/ Interest rate spread 176,928 3.33% Net interest-earning assets/ Net interest margin $686,141 3.60% Ratio of interest-earning assets to interest-bearing liabilities 1.12X 2008 -------- Average Interest Avg. Balance Yield/ Cost ASSETS: ------- Interest-earning assets: Loans receivable (a) (b) (d) 4,966,252 245,133 6.53% Mortgage-backed securities ( c ) 722,598 25,864 4.77% Investment securities ( c ) (d) (e) 498,280 22,798 6.10% FHLB stock 43,869 1,114 3.39% Other interest-earning deposits 133,582 2,714 2.68% ------- ----- Total interest-earning assets 6,364,581 297,623 6.20% Noninterest earning assets (f) 489,750 ------- TOTAL ASSETS 6,854,331 ========= LIABILITIES AND SHAREHOLDERS' EQUITY: ------------------------------------- Interest-bearing liabilities: Savings accounts 778,024 6,887 1.19% Interest-bearing demand accounts 735,217 5,129 0.94% Money market accounts 724,775 11,750 2.17% Certificate accounts 2,805,665 86,036 4.11% Borrowed funds (g) 620,970 17,880 3.86% Junior subordinated debentures 108,295 3,947 4.81% ------- ----- Total interest-bearing liabilities 5,772,946 131,629 3.06% Noninterest bearing liabilities 460,172 ------- Total liabilities 6,233,118 Shareholders' equity 621,213 ------- TOTAL LIABILITIES AND EQUITY 6,854,331 ========= Net interest income/ Interest rate spread 165,994 3.14% Net interest-earning assets/ Net interest margin 591,635 3.48% Ratio of interest-earning assets to interest-bearing liabilities 1.10X (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, which was not material. ( 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 Fannie Mae and Freddie Mac 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. DATASOURCE: Northwest Bancorp, Inc. CONTACT: William J. Wagner, President and Chief Executive Officer, or William W. Harvey, Jr., Executive Vice President and Chief Financial Officer, both of Northwest Bancorp, Inc., +1-814-726-2140 Web Site: http://www.northwestsavingsbank.com/

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