Maryland | 1-34582 | 27-0950358 | ||
(State or other jurisdiction | (Commission File No.) | (I.R.S. Employer | ||
of incorporation) | Identification No.) |
100 Liberty Street | ||
Warren, Pennsylvania | 16365 | |
(Address of principal executive office) | (Zip code) |
Exhibit No. | Description | |
99.1 | Press release dated January 25, 2016 |
NORTHWEST BANCSHARES, INC. | ||||
DATE: | January 26, 2016 | By: | /s/ William W. Harvey, Jr. | |
William W. Harvey, Jr. | ||||
Chief Financial Officer | ||||
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 | $ | 891,248 | ||||
Interest-bearing demand deposits | 1,080,086 | 874,623 | ||||||
Money market deposit accounts | 1,274,504 | 1,179,070 | ||||||
Savings deposits | 1,386,017 | 1,209,287 | ||||||
Time deposits | 1,694,718 | 1,478,314 | ||||||
Total deposits | 6,612,581 | 5,632,542 | ||||||
Borrowed funds | 975,007 | 888,109 | ||||||
Advances by borrowers for taxes and insurance | 33,735 | 30,507 | ||||||
Accrued interest payable | 1,993 | 936 | ||||||
Other liabilities | 54,207 | 57,198 | ||||||
Junior subordinated debentures | 111,213 | 103,094 | ||||||
Total liabilities | 7,788,736 | 6,712,386 | ||||||
Shareholders’ equity | ||||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued | — | — | ||||||
Common stock, $0.01 par value: 500,000,000 shares authorized, 101,871,737 shares and 94,721,453 shares issued and outstanding, respectively | 1,019 | 947 | ||||||
Paid-in-capital | 717,603 | 626,134 | ||||||
Retained earnings | 489,292 | 481,577 | ||||||
Unallocated common stock of Employee Stock Ownership Plan | (20,216 | ) | (21,641 | ) | ||||
Accumulated other comprehensive loss | (24,535 | ) | (24,370 | ) | ||||
Total shareholders’ equity | 1,163,163 | 1,062,647 | ||||||
Total liabilities and shareholders’ equity | $ | 8,951,899 | 7,775,033 | |||||
Equity to assets | 12.99 | % | 13.67 | % | ||||
Tangible common equity to assets | 10.28 | % | 11.64 | % | ||||
Book value per share | $ | 11.42 | 11.22 | |||||
Tangible book value per share | $ | 8.76 | 9.34 | |||||
Closing market price per share | $ | 13.39 | 12.53 | |||||
Full time equivalent employees | 2,186 | 2,042 | ||||||
Number of banking offices | 181 | 162 |
Quarter ended | ||||||||||
December 31, | September 30, | |||||||||
2015 | 2014 | 2015 | ||||||||
Interest income: | ||||||||||
Loans receivable | $ | 80,882 | $ | 71,182 | 76,087 | |||||
Mortgage-backed securities | 2,301 | 2,357 | 2,230 | |||||||
Taxable investment securities | 1,108 | 1,032 | 1,238 | |||||||
Tax-free investment securities | 836 | 1,467 | 986 | |||||||
FHLB dividends | 499 | 383 | 451 | |||||||
Interest-earning deposits | 13 | 164 | 99 | |||||||
Total interest income | 85,639 | 76,585 | 81,091 | |||||||
Interest expense: | ||||||||||
Deposits | 6,435 | 6,106 | 6,163 | |||||||
Borrowed funds | 8,051 | 7,876 | 7,987 | |||||||
Total interest expense | 14,486 | 13,982 | 14,150 | |||||||
Net interest income | 71,153 | 62,603 | 66,941 | |||||||
Provision for loan losses | 4,595 | 1,078 | 3,167 | |||||||
Net interest income after provision for loan losses | 66,558 | 61,525 | 63,774 | |||||||
Gain on sale of investments | 116 | 381 | 260 | |||||||
Service charges and fees | 10,530 | 9,268 | 9,945 | |||||||
Trust and other financial services income | 3,410 | 3,291 | 3,062 | |||||||
Insurance commission income | 2,490 | 2,181 | 2,398 | |||||||
Loss on real estate owned, net | (156 | ) | (30 | ) | (246 | ) | ||||
Income from bank owned life insurance | 1,251 | 1,057 | 1,166 | |||||||
Mortgage banking income | 208 | 269 | 267 | |||||||
Other operating income | 1,697 | 805 | 1,288 | |||||||
Total noninterest income | 19,546 | 17,222 | 18,140 | |||||||
Noninterest expense: | ||||||||||
Compensation and employee benefits | 32,003 | 31,405 | 31,000 | |||||||
Premises and occupancy costs | 6,403 | 5,516 | 6,072 | |||||||
Office operations | 4,504 | 3,677 | 3,892 | |||||||
Processing expenses | 8,057 | 6,720 | 8,126 | |||||||
Marketing expenses | 1,642 | 1,434 | 1,691 | |||||||
Federal deposit insurance premiums | 1,299 | 1,316 | 1,177 | |||||||
Professional services | 1,933 | 1,970 | 1,529 | |||||||
Amortization of intangible assets | 729 | 331 | 422 | |||||||
Real estate owned expense | 393 | 406 | 471 | |||||||
Acquisition expense | 1,347 | 394 | 7,590 | |||||||
Other expense | 2,917 | 2,043 | 1,834 | |||||||
Total noninterest expense | 61,227 | 55,212 | 63,804 | |||||||
Income before income taxes | 24,877 | 23,535 | 18,110 | |||||||
Income tax expense | 8,684 | 6,190 | 5,238 | |||||||
Net income | $ | 16,193 | $ | 17,345 | 12,872 | |||||
Basic earnings per share | $ | 0.16 | $ | 0.19 | 0.14 | |||||
Diluted earnings per share | $ | 0.16 | $ | 0.19 | 0.13 | |||||
Annualized return on average equity | 5.83 | % | 6.42 | % | 4.54 | % | ||||
Annualized return on average assets | 0.77 | % | 0.88 | % | 0.59 | % | ||||
Basic common shares outstanding | 98,741,393 | 91,741,487 | 95,256,807 | |||||||
Diluted common shares outstanding | 99,500,056 | 92,103,069 | 95,825,798 |
Year ended December 31, | ||||||
2015 | 2014 | |||||
Interest income: | ||||||
Loans receivable | $ | 298,665 | 282,050 | |||
Mortgage-backed securities | 8,823 | 10,320 | ||||
Taxable investment securities | 4,520 | 4,130 | ||||
Tax-free investment securities | 4,313 | 6,281 | ||||
FHLB dividends | 2,828 | 1,809 | ||||
Interest-earning deposits | 431 | 837 | ||||
Total interest income | 319,580 | 305,427 | ||||
Interest expense: | ||||||
Deposits | 24,055 | 25,322 | ||||
Borrowed funds | 32,272 | 31,265 | ||||
Total interest expense | 56,327 | 56,587 | ||||
Net interest income | 263,253 | 248,840 | ||||
Provision for loan losses | 9,712 | 20,314 | ||||
Net interest income after provision for loan losses | 253,541 | 228,526 | ||||
Noninterest income: | ||||||
Gain on sale of investments | 1,037 | 4,930 | ||||
Service charges and fees | 38,362 | 36,383 | ||||
Trust and other financial services income | 12,342 | 12,369 | ||||
Insurance commission income | 9,526 | 8,760 | ||||
Loss on real estate owned, net | (1,989 | ) | (967 | ) | ||
Income from bank owned life insurance | 4,338 | 4,191 | ||||
Mortgage banking income | 933 | 1,022 | ||||
Other operating income | 4,287 | 4,078 | ||||
Total noninterest income | 68,836 | 70,766 | ||||
Noninterest expense: | ||||||
Compensation and employee benefits | 119,818 | 115,967 | ||||
Premises and occupancy costs | 24,641 | 23,455 | ||||
Office operations | 15,584 | 14,721 | ||||
Processing expenses | 30,780 | 26,671 | ||||
Marketing expenses | 8,499 | 8,213 | ||||
Federal deposit insurance premiums | 5,109 | 5,193 | ||||
Professional services | 6,906 | 7,661 | ||||
Amortization of intangible assets | 1,688 | 1,323 | ||||
Real estate owned expense | 2,070 | 2,140 | ||||
Acquisition expense | 9,751 | 394 | ||||
Other expense | 9,031 | 9,797 | ||||
Total noninterest expense | 233,877 | 215,535 | ||||
Income before income taxes | 88,500 | 83,757 | ||||
Income tax expense | 27,960 | 21,795 | ||||
Net income | $ | 60,540 | 61,962 | |||
Basic earnings per share | $ | 0.64 | 0.68 | |||
Diluted earnings per share | $ | 0.64 | 0.67 | |||
Annualized return on average equity | 5.49 | % | 5.69 | % | ||
Annualized return on average assets | 0.73 | % | 0.79 | % | ||
Basic common shares outstanding | 94,314,420 | 91,535,298 | ||||
Diluted common shares outstanding | 94,829,789 | 92,274,997 |
Quarter ended | Year ended | |||||||||||
December 31, | December 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Operating results (non-GAAP): | ||||||||||||
Net interest income | $ | 71,153 | 62,603 | 263,253 | 248,840 | |||||||
Provision for loan losses | 4,595 | 1,078 | 9,712 | 20,314 | ||||||||
Noninterest income | 19,546 | 17,222 | 68,836 | 70,766 | ||||||||
Noninterest expense | 59,880 | 55,212 | 224,126 | 215,535 | ||||||||
Income taxes | 9,111 | 6,190 | 31,239 | 21,795 | ||||||||
Net operating income (non-GAAP) | $ | 17,113 | 17,345 | 67,012 | 61,962 | |||||||
Diluted earnings per share (non-GAAP) | $ | 0.17 | 0.19 | 0.71 | 0.67 | |||||||
Reconciliation of net operating income to net income: | $ | 17,113 | 17,345 | 67,012 | 61,962 | |||||||
Net operating income (non-GAAP) | ||||||||||||
Non-operating expenses, net of tax: | ||||||||||||
Acquisition expenses, net of tax benefit | (920 | ) | — | (6,472 | ) | — | ||||||
Net income (GAAP) | $ | 16,193 | 17,345 | 60,540 | 61,962 | |||||||
Diluted earnings per share (GAAP) | $ | 0.16 | 0.19 | 0.64 | 0.67 |
December 31, 2015 | December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||
Nonaccrual loans current: | ||||||||||||
Residential mortgage loans | $ | 1,393 | 1,169 | 1,361 | 797 | |||||||
Home equity loans | 1,108 | 1,527 | 835 | 635 | ||||||||
Other consumer loans | 140 | 88 | 98 | 44 | ||||||||
Commercial real estate loans | 14,018 | 23,703 | 17,866 | 24,960 | ||||||||
Commercial loans | 4,604 | 5,917 | 13,357 | 5,424 | ||||||||
Total nonaccrual loans current | $ | 21,263 | 32,404 | 33,517 | 31,860 | |||||||
Nonaccrual loans delinquent 30 days to 59 days: | ||||||||||||
Residential mortgage loans | $ | 430 | 1,545 | 427 | — | |||||||
Home equity loans | 375 | 712 | 404 | — | ||||||||
Other consumer loans | 97 | 48 | 15 | — | ||||||||
Commercial real estate loans | 2,192 | 1,128 | 3,468 | 5,549 | ||||||||
Commercial loans | 322 | 9 | 7,650 | 2,002 | ||||||||
Total nonaccrual loans delinquent 30 days to 59 days | $ | 3,416 | 3,442 | 11,964 | 7,551 | |||||||
Nonaccrual loans delinquent 60 days to 89 days: | ||||||||||||
Residential mortgage loans | $ | 2,139 | 784 | 864 | — | |||||||
Home equity loans | 389 | 724 | 280 | — | ||||||||
Other consumer loans | 315 | 234 | 87 | — | ||||||||
Commercial real estate loans | 762 | 763 | 2,036 | 2,802 | ||||||||
Commercial loans | 110 | 131 | 716 | 9,652 | ||||||||
Total nonaccrual loans delinquent 60 days to 89 days | $ | 3,715 | 2,636 | 3,983 | 12,454 | |||||||
Nonaccrual loans delinquent 90 days or more: | ||||||||||||
Residential mortgage loans | $ | 15,810 | 17,696 | 24,625 | 24,286 | |||||||
Home equity loans | 5,650 | 6,606 | 8,344 | 8,479 | ||||||||
Other consumer loans | 2,900 | 2,450 | 2,057 | 1,936 | ||||||||
Commercial real estate loans | 16,449 | 10,215 | 18,433 | 24,550 | ||||||||
Commercial loans | 2,459 | 4,359 | 4,298 | 9,096 | ||||||||
Total nonaccrual loans delinquent 90 days or more | $ | 43,268 | 41,326 | 57,757 | 68,347 | |||||||
Total nonaccrual loans | $ | 71,662 | 79,808 | 107,221 | 120,212 |
December 31, 2015 | December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||
Nonaccrual loans | $ | 71,662 | 79,808 | 107,221 | 120,212 | |||||||
Loans 90 days past maturity and still accruing | 1,334 | 235 | 690 | 1,698 | ||||||||
Nonperforming loans | 72,996 | 80,043 | 107,911 | 121,910 | ||||||||
Real estate owned, net | 8,725 | 16,759 | 18,203 | 26,165 | ||||||||
Nonperforming assets | $ | 81,721 | 96,802 | 126,114 | 148,075 | |||||||
Nonaccrual troubled debt restructuring * | $ | 21,118 | 24,459 | 28,889 | 41,166 | |||||||
Accruing troubled debt restructuring | 29,997 | 37,329 | 50,277 | 48,278 | ||||||||
Total troubled debt restructuring | $ | 51,115 | 61,788 | 79,166 | 89,444 | |||||||
Nonperforming loans to total loans | 1.01 | % | 1.34 | % | 1.86 | % | 2.14 | % | ||||
Nonperforming assets to total assets | 0.91 | % | 1.25 | % | 1.60 | % | 1.86 | % | ||||
Allowance for loan losses to total loans | 0.87 | % | 1.13 | % | 1.23 | % | 1.28 | % | ||||
Allowance for loan losses to nonperforming loans | 85.86 | % | 84.35 | % | 66.12 | % | 60.06 | % |
Pass | Special mention * | Substandard ** | Doubtful | Loss | Recorded investment in loans receivable | |||||||||||||
Personal Banking: | ||||||||||||||||||
Residential mortgage loans | $ | 2,735,164 | — | 14,060 | — | 1,340 | 2,750,564 | |||||||||||
Home equity loans | 1,178,735 | — | 8,371 | — | — | 1,187,106 | ||||||||||||
Other consumer loans | 508,074 | — | 2,543 | — | — | 510,617 | ||||||||||||
Total Personal Banking | 4,421,973 | — | 24,974 | — | 1,340 | 4,448,287 | ||||||||||||
Business Banking: | ||||||||||||||||||
Commercial real estate loans | 2,170,951 | 53,390 | 126,978 | 115 | — | 2,351,434 | ||||||||||||
Commercial loans | 359,403 | 23,730 | 38,157 | 1,110 | — | 422,400 | ||||||||||||
Total Business Banking | 2,530,354 | 77,120 | 165,135 | 1,225 | — | 2,773,834 | ||||||||||||
$ | 6,952,327 | 77,120 | 190,109 | 1,225 | 1,340 | 7,222,121 |
Pass | Special mention | Substandard | Doubtful | Loss | Recorded investment in loans receivable | |||||||||||||
Personal Banking: | ||||||||||||||||||
Residential mortgage loans | $ | 2,507,269 | — | 12,763 | — | 1,424 | 2,521,456 | |||||||||||
Home equity loans | 1,059,525 | — | 6,606 | — | — | 1,066,131 | ||||||||||||
Other consumer loans | 240,947 | — | 1,797 | — | — | 242,744 | ||||||||||||
Total Personal Banking | 3,807,741 | — | 21,166 | — | 1,424 | 3,830,331 | ||||||||||||
Business Banking: | ||||||||||||||||||
Commercial real estate loans | 1,570,649 | 36,908 | 145,502 | 505 | — | 1,753,564 | ||||||||||||
Commercial loans | 333,854 | 23,690 | 46,280 | 2,172 | — | 405,996 | ||||||||||||
Total Business Banking | 1,904,503 | 60,598 | 191,782 | 2,677 | — | 2,159,560 | ||||||||||||
$ | 5,712,244 | 60,598 | 212,948 | 2,677 | 1,424 | 5,989,891 |
December 31, 2015 | * | December 31, 2014 | * | December 31, 2013 | * | December 31, 2012 | * | ||||||||||||||||||||||||||||||||
Loans delinquent 30 days to 59 days: | |||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 349 | $ | 25,943 | 0.9 | % | 377 | $ | 27,443 | 1.1 | % | 374 | $ | 27,486 | 1.1 | % | 430 | $ | 32,921 | 1.4 | % | |||||||||||||||||||
Home equity loans | 173 | 5,806 | 0.5 | % | 161 | 5,752 | 0.5 | % | 213 | 6,946 | 0.6 | % | 224 | 6,534 | 0.6 | % | |||||||||||||||||||||||
Consumer loans | 1,234 | 7,101 | 1.4 | % | 1,193 | 5,572 | 2.3 | % | 1,010 | 4,515 | 2.0 | % | 1,122 | 5,456 | 2.4 | % | |||||||||||||||||||||||
Commercial real estate loans | 48 | 24,877 | 1.1 | % | 56 | 4,956 | 0.3 | % | 73 | 8,449 | 0.5 | % | 87 | 13,001 | 0.8 | % | |||||||||||||||||||||||
Commercial loans | 31 | 2,868 | 0.7 | % | 26 | 2,262 | 0.6 | % | 34 | 9,243 | 2.3 | % | 41 | 3,233 | 0.8 | % | |||||||||||||||||||||||
Total loans delinquent 30 days to 59 days | 1,835 | $ | 66,595 | 0.9 | % | 1,813 | $ | 45,985 | 0.8 | % | 1,704 | $ | 56,639 | 1.0 | % | 1,904 | $ | 61,145 | 1.1 | % | |||||||||||||||||||
Loans delinquent 60 days to 89 days: | |||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 100 | $ | 7,790 | 0.3 | % | 100 | $ | 6,970 | 0.3 | % | 103 | $ | 7,568 | 0.3 | % | 100 | $ | 9,387 | 0.4 | % | |||||||||||||||||||
Home equity loans | 50 | 2,478 | 0.2 | % | 49 | 1,672 | 0.2 | % | 67 | 2,243 | 0.2 | % | 65 | 1,977 | 0.2 | % | |||||||||||||||||||||||
Consumer loans | 521 | 2,521 | 0.5 | % | 525 | 2,435 | 1.0 | % | 507 | 1,866 | 0.8 | % | 448 | 1,830 | 0.8 | % | |||||||||||||||||||||||
Commercial real estate loans | 21 | 8,228 | 0.3 | % | 21 | 2,038 | 0.1 | % | 35 | 3,968 | 0.2 | % | 33 | 4,596 | 0.3 | % | |||||||||||||||||||||||
Commercial loans | 7 | 598 | 0.1 | % | 4 | 209 | 0.1 | % | 16 | 1,555 | 0.4 | % | 17 | 10,158 | 2.6 | % | |||||||||||||||||||||||
Total loans delinquent 60 days to 89 days | 699 | $ | 21,615 | 0.3 | % | 699 | $ | 13,324 | 0.2 | % | 728 | $ | 17,200 | 0.3 | % | 663 | $ | 27,948 | 0.5 | % | |||||||||||||||||||
Loans delinquent 90 days or more: ** | |||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 215 | $ | 16,350 | 0.6 | % | 225 | $ | 17,696 | 0.7 | % | 273 | $ | 24,625 | 1.0 | % | 266 | $ | 24,286 | 1.0 | % | |||||||||||||||||||
Home equity loans | 143 | 6,112 | 0.5 | % | 139 | 6,606 | 0.6 | % | 171 | 8,344 | 0.8 | % | 175 | 8,479 | 0.8 | % | |||||||||||||||||||||||
Consumer loans | 523 | 2,926 | 0.6 | % | 539 | 2,450 | 1.0 | % | 470 | 2,057 | 0.9 | % | 427 | 1,936 | 0.8 | % | |||||||||||||||||||||||
Commercial real estate loans | 113 | 19,031 | 0.8 | % | 102 | 10,215 | 0.6 | % | 124 | 18,433 | 1.1 | % | 146 | 24,550 | 1.5 | % | |||||||||||||||||||||||
Commercial loans | 25 | 2,599 | 0.6 | % | 25 | 4,359 | 1.1 | % | 31 | 4,298 | 1.1 | % | 61 | 9,096 | 2.3 | % | |||||||||||||||||||||||
Total loans delinquent 90 days or more | 1,019 | $ | 47,018 | 0.7 | % | 1,030 | $ | 41,326 | 0.7 | % | 1,069 | $ | 57,757 | 1.0 | % | 1,075 | $ | 68,347 | 1.2 | % | |||||||||||||||||||
Total loans delinquent | 3,553 | $ | 135,228 | 1.9 | % | 3,542 | $ | 100,635 | 1.7 | % | 3,501 | $ | 131,596 | 2.3 | % | 3,642 | $ | 157,440 | 2.8 | % |
Quarter ended December 31, | Year ended December 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Allowance for loan losses | ||||||||||||
Beginning balance | $ | 60,547 | 71,650 | 67,518 | 71,348 | |||||||
Provision | 4,595 | 1,078 | 9,712 | 20,314 | ||||||||
Charge-offs residential mortgage | (171 | ) | (487 | ) | (1,126 | ) | (2,181 | ) | ||||
Charge-offs home equity | (1,097 | ) | (493 | ) | (2,424 | ) | (1,783 | ) | ||||
Charge-offs other consumer | (2,561 | ) | (1,813 | ) | (8,274 | ) | (6,423 | ) | ||||
Charge-offs commercial real estate | (1,216 | ) | (2,931 | ) | (6,326 | ) | (8,422 | ) | ||||
Charge-offs commercial | (508 | ) | (1,070 | ) | (8,183 | ) | (11,936 | ) | ||||
Recoveries | 3,083 | 1,584 | 11,775 | 6,601 | ||||||||
Ending balance | $ | 62,672 | 67,518 | 62,672 | 67,518 | |||||||
Net charge-offs to average loans, annualized | 0.14 | % | 0.35 | % | 0.23 | % | 0.41 | % |
Quarter ended December 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Avg. | Avg. | ||||||||||||||||||
Average Balance | Interest | Yield/ Cost (g) | Average Balance | Interest | Yield/ Cost (g) | ||||||||||||||
Assets: | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Loans receivable (a) (b) (d) | $ | 7,148,603 | 81,428 | 4.52 | % | $ | 5,961,303 | 71,669 | 4.77 | % | |||||||||
Mortgage-backed securities (c) | 519,736 | 2,301 | 1.77 | % | 536,990 | 2,357 | 1.76 | % | |||||||||||
Investment securities (c) (d) | 427,363 | 2,394 | 2.24 | % | 495,554 | 3,289 | 2.65 | % | |||||||||||
FHLB stock | 38,651 | 499 | 5.12 | % | 36,315 | 383 | 4.22 | % | |||||||||||
Other interest-earning deposits | 40,410 | 13 | 0.13 | % | 251,229 | 164 | 0.26 | % | |||||||||||
Total interest-earning assets | 8,174,763 | 86,635 | 4.20 | % | 7,281,391 | 77,862 | 4.28 | % | |||||||||||
Noninterest earning assets (e) | 747,317 | 546,946 | |||||||||||||||||
Total assets | $ | 8,922,080 | $ | 7,828,337 | |||||||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Savings deposits | $ | 1,378,377 | 871 | 0.25 | % | $ | 1,209,117 | 828 | 0.27 | % | |||||||||
Interest-bearing demand deposits | 1,083,524 | 157 | 0.06 | % | 884,542 | 147 | 0.07 | % | |||||||||||
Money market deposit accounts | 1,279,181 | 873 | 0.27 | % | 1,182,041 | 797 | 0.27 | % | |||||||||||
Time deposits | 1,720,895 | 4,534 | 1.05 | % | 1,506,526 | 4,334 | 1.14 | % | |||||||||||
Borrowed funds (f) | 906,574 | 6,730 | 2.95 | % | 894,509 | 6,694 | 2.97 | % | |||||||||||
Junior subordinated debentures | 116,626 | 1,321 | 4.43 | % | 103,094 | 1,182 | 4.49 | % | |||||||||||
Total interest-bearing liabilities | 6,485,177 | 14,486 | 0.89 | % | 5,779,829 | 13,982 | 0.96 | % | |||||||||||
Noninterest-bearing demand deposits | 1,145,276 | 897,082 | |||||||||||||||||
Noninterest bearing liabilities | 133,323 | 79,850 | |||||||||||||||||
Total liabilities | 7,763,776 | 6,756,761 | |||||||||||||||||
Shareholders’ equity | 1,158,304 | 1,071,576 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 8,922,080 | $ | 7,828,337 | |||||||||||||||
Net interest income/ Interest rate spread | 72,149 | 3.31 | % | 63,880 | 3.32 | % | |||||||||||||
Net interest-earning assets/ Net interest margin | $ | 1,689,586 | 3.53 | % | $ | 1,501,562 | 3.51 | % | |||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.26 | X | 1.26 | X |
(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 the effect of unrealized gains or losses on securities held as available-for-sale. |
(f) | Average balances include FHLB borrowings and collateralized borrowings. |
(g) | Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.49% and 4.74%, respectively, Investment securities - 1.82% and 2.02%, respectively, Interest-earning assets - 4.16% and 4.21%, respectively. GAAP basis net interest rate spreads were 3.27% and 3.25%, respectively, and GAAP basis net interest margins were 3.48% and 3.44%, respectively. |
Year ended December 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Avg. | Avg. | ||||||||||||||||||
Average Balance | Interest | Yield/ Cost (g) | Average Balance | Interest | Yield/ Cost (g) | ||||||||||||||
Assets: | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Loans receivable (a) (b) (d) | $ | 6,460,078 | 300,638 | 4.65 | % | $ | 5,883,244 | 284,107 | 4.83 | % | |||||||||
Mortgage-backed securities (c) | 500,797 | 8,823 | 1.76 | % | 581,906 | 10,320 | 1.77 | % | |||||||||||
Investment securities (c) (d) | 469,568 | 11,155 | 2.38 | % | 499,718 | 13,792 | 2.76 | % | |||||||||||
FHLB stock (h) | 37,500 | 1,788 | 4.77 | % | 41,975 | 1,809 | 4.33 | % | |||||||||||
Other interest-earning deposits | 179,201 | 431 | 0.24 | % | 325,201 | 837 | 0.25 | % | |||||||||||
Total interest-earning assets | 7,647,144 | 322,835 | 4.22 | % | 7,332,044 | 310,865 | 4.24 | % | |||||||||||
Noninterest earning assets (e) | 677,449 | 561,107 | |||||||||||||||||
Total assets | $ | 8,324,593 | $ | 7,893,151 | |||||||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Savings deposits | $ | 1,300,102 | 3,387 | 0.26 | % | $ | 1,221,304 | 3,286 | 0.27 | % | |||||||||
Interest-bearing demand deposits | 976,789 | 568 | 0.06 | % | 882,980 | 587 | 0.07 | % | |||||||||||
Money market deposit accounts | 1,202,143 | 3,222 | 0.27 | % | 1,181,235 | 3,174 | 0.27 | % | |||||||||||
Time deposits | 1,540,905 | 16,878 | 1.10 | % | 1,575,595 | 18,275 | 1.16 | % | |||||||||||
Borrowed funds (f) | 925,683 | 27,347 | 2.95 | % | 881,118 | 26,574 | 3.02 | % | |||||||||||
Junior subordinated debentures | 108,507 | 4,925 | 4.48 | % | 103,094 | 4,691 | 4.49 | % | |||||||||||
Total interest-bearing liabilities | 6,054,129 | 56,327 | 0.93 | % | 5,845,326 | 56,587 | 0.97 | % | |||||||||||
Noninterest-bearing demand deposits | 1,001,263 | 864,322 | |||||||||||||||||
Noninterest bearing liabilities | 166,530 | 94,298 | |||||||||||||||||
Total liabilities | 7,221,922 | 6,803,946 | |||||||||||||||||
Shareholders’ equity | 1,102,671 | 1,089,205 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 8,324,593 | $ | 7,893,151 | |||||||||||||||
Net interest income/ Interest rate spread | 266,508 | 3.29 | % | 254,278 | 3.27 | % | |||||||||||||
Net interest-earning assets/ Net interest margin | $ | 1,593,015 | 3.49 | % | $ | 1,486,718 | 3.47 | % | |||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.26 | X | 1.25 | X |
(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 the effect of unrealized gains or losses on securities held as available-for-sale. |
(f) | Average balances include FHLB borrowings and collateralized borrowings. |
(g) | Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.62% and 4.79%, respectively, Investment securities - 1.88% and 2.08%, respectively, Interest-earning assets - 4.17% and 4.17%, respectively. GAAP basis net interest rate spreads were 3.24% and 3.20%, respectively, and GAAP basis net interest margins were 3.43% and 3.39%, respectively. |
(h) | Excludes $1.0 million special dividend paid in February 2015 from the average yield calculation. |
Quarter ended December 31, 2015 | Quarter ended September 30, 2015 | ||||||||||||||||||
Avg. | Avg. | ||||||||||||||||||
Average Balance | Interest | Yield/ Cost (g) | Average Balance | Interest | Yield/ Cost (g) | ||||||||||||||
Assets: | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Loans receivable (a) (b) (d) | $ | 7,148,603 | 81,428 | 4.52 | % | $ | 6,584,664 | 76,583 | 4.61 | % | |||||||||
Mortgage-backed securities (c) | 519,736 | 2,301 | 1.77 | % | 498,757 | 2,230 | 1.79 | % | |||||||||||
Investment securities (c) (d) | 427,363 | 2,394 | 2.24 | % | 482,666 | 2,754 | 2.28 | % | |||||||||||
FHLB stock | 38,651 | 499 | 5.12 | % | 39,552 | 451 | 4.52 | % | |||||||||||
Other interest-earning deposits | 40,410 | 13 | 0.13 | % | 162,041 | 99 | 0.24 | % | |||||||||||
Total interest-earning assets | 8,174,763 | 86,635 | 4.20 | % | 7,767,680 | 82,117 | 4.19 | % | |||||||||||
Noninterest earning assets (e) | 747,317 | 846,439 | |||||||||||||||||
Total assets | $ | 8,922,080 | $ | 8,614,119 | |||||||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Savings deposits | $ | 1,378,377 | 871 | 0.25 | % | $ | 1,324,620 | 865 | 0.26 | % | |||||||||
Interest-bearing demand deposits | 1,083,524 | 157 | 0.06 | % | 1,022,585 | 149 | 0.06 | % | |||||||||||
Money market deposit accounts | 1,279,181 | 873 | 0.27 | % | 1,217,122 | 825 | 0.27 | % | |||||||||||
Time deposits | 1,720,895 | 4,534 | 1.05 | % | 1,577,159 | 4,324 | 1.09 | % | |||||||||||
Borrowed funds (f) | 906,574 | 6,730 | 2.95 | % | 906,410 | 6,713 | 2.94 | % | |||||||||||
Junior subordinated debentures | 116,626 | 1,321 | 4.43 | % | 111,213 | 1,274 | 4.48 | % | |||||||||||
Total interest-bearing liabilities | 6,485,177 | 14,486 | 0.89 | % | 6,159,109 | 14,150 | 0.91 | % | |||||||||||
Noninterest-bearing demand deposits | 1,145,276 | 1,054,270 | |||||||||||||||||
Noninterest bearing liabilities | 133,323 | 275,435 | |||||||||||||||||
Total liabilities | 7,763,776 | 7,488,814 | |||||||||||||||||
Shareholders’ equity | 1,158,304 | 1,125,305 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 8,922,080 | $ | 8,614,119 | |||||||||||||||
Net interest income/ Interest rate spread | 72,149 | 3.31 | % | 67,967 | 3.28 | % | |||||||||||||
Net interest-earning assets/ Net interest margin | $ | 1,689,586 | 3.53 | % | $ | 1,608,571 | 3.50 | % | |||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.26 | X | 1.26 | X |
(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 the effect of unrealized gains or losses on securities held as available-for-sale. |
(f) | Average balances include FHLB borrowings and collateralized borrowings. |
(g) | Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.49% and 4.58%, respectively, Investment securities - 1.82% and 1.84%, respectively, Interest-earning assets - 4.16% and 4.14%, respectively. GAAP basis net interest rate spreads were 3.27% and 3.23%, respectively, and GAAP basis net interest margins were 3.48% and 3.45%, respectively. |