Northwest Bancshares, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017
January 22, 2018 at 09:22 pm IST
Share
Northwest Bancshares, Inc. reported Unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company announced net income of $22.1 million, or $0.22 per diluted share. This represents a decrease of $2.4 million, or 9.6%, compared to the same quarter last year when net income was $24.5 million or $0.24 per diluted share. The annualized returns on average shareholders' equity and average assets were 7.31% and 0.94% compared to 8.37% and 1.01% for the same quarter last year. Net interest income increased by $1.3 million, or 1.6%, to $84.2 million for the quarter ended December 31, 2017, from $82.9 million for the quarter ended December 31, 2016. This increase is due primarily to a $1.5 million, or 1.7%, increase in interest income on loans receivable and an $850,000, or 39.2% increase in interest income on mortgage-backed securities. Net interest income after provision for loan losses was $77,715,000 compared to $80,797,000 a year ago. Income before income taxes were $28,724,000 compared to $36,855,000 a year ago. Annualized return on tangible common equity was 10.05% against of 11.73% a year ago.
For the full year, the company’s net income was $94.5 million, or $0.92 per diluted share, which represents an increase of $44.8 million, or 90.2%, compared to the year ended December 31, 2016, when net income was $49.7 million, or $0.49 per diluted share. The returns on average shareholders' equity and average assets were 7.95% and 0.99%, respectively, compared to 4.28% and 0.55% for the same period last year. This increase is due primarily to the sale of the Company's Maryland offices at a profit of $17.2 million during 2017 and also to a $37.0 million penalty incurred from the prepayment of FHLB borrowings during 2016. Non-GAAP net income, which excludes the after-tax impact of the gain on sale of the Maryland offices of $10.3 million and after-tax restructuring expenses of $2.7 million as well as the aforementioned $3.1 million tax benefit, was $83.7 million, or $0.83 per diluted share. Net interest income after provision for loan losses was $311,034,000 compared to $293,793,000 a year ago. Income before income taxes was $135,911,000 compared to $71,315,000 a year ago. Annualized return on tangible common equity was 10.80% compared to 5.98% a year ago. Net operating income (non-GAAP) was $83,735,000 compared to $82,264,000 a year ago. Diluted earnings per share (non-GAAP) were $0.83 compared to $0.82 a year ago. Annualized ROE (non-GAAP) was 7.04% compared to 7.09% a year ago. Annualized ROA (non-GAAP) was 0.88% against of 0.90% a year ago.
Northwest Bancshares, Inc. is a bank holding company of Northwest Bank (the Bank). Northwest Bank is a Pennsylvania-chartered savings bank. The Bank is a community-oriented financial institution offering personal and business banking solutions, investment management and trust services. The Banks principal lending activities are the origination of loans secured by first mortgages on owner-occupied, one-to-four-family residences, shorter term consumer loans, and commercial business and commercial real estate loans. Its principal sources of funds for lending activities include deposits, borrowings, repayments on loans, cash flows from investment and mortgage-backed securities and income provided from operations. It offers other consumer loans, such as direct and indirect automobile loans, sales finance loans, credit card loans, and others. The Bank has approximately 142 community-banking locations throughout its market area in Pennsylvania, western New York, eastern Ohio, and Indiana.