Northwest Bancshares, Inc. (NWBI) has reported 10.29 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $14.20 million, or $0.14 a share in the quarter, compared with $12.87 million, or $0.13 a share for the same period last year. On an adjusted basis, earnings per share were at $0.22 for the quarter compared with $0.19 in the same period last year.
Revenue during the quarter grew 14.66 percent to $93.93 million from $81.91 million in the previous year period. Net interest income for the quarter rose 17.49 percent over the prior year period to $78.65 million. Non-interest income for the quarter rose 14.76 percent over the last year period to $20.82 million.
Northwest Bancshares, Inc. has made provision of $5.54 million for loan losses during the quarter, up 74.87 percent from $3.17 million in the same period last year.
Net interest margin improved 38 basis points to 3.88 percent in the quarter from 3.50 percent in the last year period. Efficiency ratio for the quarter deteriorated to 67.14 percent from 65.58 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
However, the adjusted operating income for the quarter stood at $22.50 million compared to $17.86 million in the prior year period. At the same time, adjusted operating margin improved 216 basis points in the quarter to 23.96 percent from 21.80 percent in the last year period.
William J. Wagner, president and chief executive officer, noted, "The $4.6 million, or 26%, increase in non-GAAP quarterly earnings over the previous year primarily reflects the impact of the merger of Lorain National Bank, which occurred in August 2015, and the refinancing of $700.0 million of fixed-rate FHLB advances, which occurred in May 2016. Since the purchase of the Buffalo branches occurred late in the current quarter, there was limited impact on earnings. However, we anticipate the full impact from this transaction to be realized in the fourth quarter of 2016."
Liabilities outpace assets growth
Total assets stood at $9,714.61 million as on Sep. 30, 2016, up 8.73 percent compared with $8,934.91 million on Sep. 30, 2015. On the other hand, total liabilities stood at $8,551.80 million as on Sep. 30, 2016, up 10.01 percent from $7,773.57 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $7,735.32 million as on Sep. 30, 2016, up 9.09 percent compared with $7,091.07 million on Sep. 30, 2015. Deposits stood at $8,202.80 million as on Sep. 30, 2016, up 23.45 percent compared with $6,644.74 million on Sep. 30, 2015.
Noninterest-bearing deposit liabilities were $1,496.57 million or 18.24 percent of total deposits on Sep. 30, 2016, compared with $1,127.86 million or 16.97 percent of total deposits on Sep. 30, 2015.
Investments stood at $913.27 million as on Sep. 30, 2016, down 10.81 percent or $110.70 million from year-ago. Shareholders equity stood at $1,162.80 million as on Sep. 30, 2016, up 0.13 percent or $1.47 million from year-ago.
Return on average assets moved up 4 basis points to 0.63 percent in the quarter from 0.59 percent in the last year period. At the same time, return on average equity increased 35 basis points to 4.89 percent in the quarter from 4.54 percent in the last year period.
Nonperforming assets moved up 15.50 percent or $12.24 million to $91.22 million on Sep. 30, 2016 from $78.98 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.94 percent in the quarter, up from 0.88 percent in the last year period.
Equity to assets ratio was 11.97 percent for the quarter, down from 13 percent for the previous year quarter. Book value per share was $11.48 for the quarter, up 0.53 percent or $0.06 compared to $11.42 for the same period last year.
