Join        Login             Stock Quote

Northwest Bancshares (NWBI) Posts Lower-Than-Expected Q1

 April 23, 2012 12:37 PM

(By Balaseshan S) Northwest Bancshares Inc. (NASDAQ:NWBI) reported a 12% decline in first quarter earnings due to a decrease in interest income from loans and investment securities. Earnings and revenue missed Street's expectations.

Earnings for the first quarter were $15.18 million or $0.16 per share, compared to $17.25 million or $0.16 per share last year.

Net interest income for the quarter declined 2.4% to $65.41 million, primarily due to decrease in interest income from loans of $2.3 million, or 2.9%, and from investment securities of $2.5 million, or 24.6%. Partially offsetting this decrease was a $3.1 million, or 19.4% decrease in interest expense on deposit accounts.

Analysts had expected a profit of $0.17 per share on revenue of $66.91 million.

Total non-interest income decreased to $13.64 million from $14.33 million, due primarily to an increase in the loss on real estate owned of $1.0 million.

Non-interest expense increased 3.8% to $51.3 million, due primarily to an increase in compensation and employee benefits expense of $2.3 million, or 9.2%. This increase is the result of the adding employees, primarily in the areas of commercial lending, loan servicing, credit review and regulatory compliance and increases in pension expense and health insurance expense.

The annualized returns on average shareholders' equity for the latest quarter decreased to 5.29% from 5.39%, while annualized returns on average assets declined to 0.76% from 0.86%.

Net charge-offs were $4.5 million, or 0.32% of average loans on an annualized basis, compared to $7.2 million, or 0.52% of average loans on an annualized basis, in the previous year. Nonperforming loans decreased $31.1 million, or 19.9%, and the ratio of nonperforming loans to total assets decreased to 1.91% from 2.16% last year.

The company also said its board of directors declared a quarterly cash dividend of $0.12 per share, payable on May 17 to shareholders of record as of May 3. This represents the 70th consecutive quarter in which the company has paid a cash dividend.

The current dividend offers yield of 3.80%, whereas the average 5-year dividend yield is 3.60%. The latest dividend payout ratio is 67.0%.

NWBI is trading down 1.08% at $12.40 on Monday. The stock has been trading between $10.74 and $13.36 for the past 52 weeks.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageWorld Growth: Mediocre or Pathetic?

The recent disappointing performance of the world economy has been labelled as the "new mediocre" by read on...

article imageSurvey Data For US Services Sector Hint At Mild Q2 Rebound

Yesterday’s discouraging numbers on job growth in April via the ADP Employment Report raise doubts about a read on...

article imageADP: US Job Growth Stumbled In April

Employment growth at US companies slowed in April to the weakest gain in three years, according to this read on...

article imageBogle Says Indexing Destined To Win The Battle Of The Quants

Vanguard founder John Bogle gave a powerful speech last month at the Q Group’s Spring Seminar that lays out read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Recent Articles by Balaseshan
More Articles on: Finance

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.