Northwest Bank posts rise in net income

$23.6M in third quarter

The parent company of Northwest Bank announced net income of $23.6 million for the third quarter this year.

Northwest Bancshares Inc. announced the income in its quarterly results Oct. 23.

The net income was up $9.4 million, or 66.2 percent, compared to the same quarter of 2016, according to the bank.

“We are pleased to report normalized earnings this quarter following a two year period during which earnings were impacted by significant restructuring activity,” said William J. Wagner, bank president and chief executive officer.

The restructuring included:

• Acquisition of LNB Bancorp Inc. in August 2015

• Consolidation of 24 offices in April 2016

• Acquisition of 18 offices in the western New York market in September 2016

• Sale of the Maryland region in May 2017

• Closure of Northwest Consumer Discount Co. in July 2017

“These restructuring initiatives have greatly streamlined our operation, resulting in a product and service set that enhances Northwest’s ability to successfully compete within our chosen markets as a mid-sized community bank,” Wagner said. “With that, we were encouraged to see that our efficiency ratio decreased to 60.9 percent in the current quarter, compared to 69.1 percent in

the quarter which last preceded the restructuring initiatives.”

Net income in the prior year period was negatively affected by an additional $4.3 million, after tax, of restructuring costs associated with the acquisition of 18 offices in western New York, as well as $3.1 million, after tax, of expenses related to the termination of the Northwest Bank employee stock ownership plan, or ESOP.

Adjusting both quarters for non core items, net income for the quarter ended Sept. 30, was $24.4 million, or 24 cents per diluted share, an increase of $2.8 million, or 13.2 percent, compared to net income of $21.6 million, or 21 cents per diluted share in the previous year.

The company also announced that its board of directors declared a quarterly cash dividend of 16 cents per share payable Nov. 16 to shareholders of record as of Nov. 2. This is the 92nd consecutive quarter in which the company has paid a cash dividend.

The full announcement is posted online.

“We are pleased to report normalized earnings this quarter following a two year period during which earnings were impacted by significant restructuring activity.” — William J. Wagner, bank president and chief executive office