Northwest Bancshares, Inc. Earnings: Streak of Four Straight Profit Rises Snapped

Northwest Bancshares, Inc. (NASDAQ:NWBI) reported its results for the second quarter. Northwest Bancshares Inc MD is a federal savings and loan holding company, which through its subsidiary Northwest Savings Bank offers traditional deposit and loan products.

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Northwest Bancshares Earnings Cheat Sheet for the Second Quarter

Results: Net income for the savings and loan company fell to $15 million (15 cents per share) vs. $16.1 million (15 cents per share) a year earlier. This is a decline of 7.1% from the year earlier quarter.

Revenue: Noninterest income was $15.3 million last quarter.

Actual vs. Wall St. Expectations: NWBI fell short of the mean analyst estimate of 16 cents per share.

Quoting Management: In making this announcement, William J. Wagner, President and CEO, noted, “Absent the impact of the additional stock benefit expense, all other components of earnings exhibited favorable trends: net interest income increased $3.0 million, or 4.6%; income earned from fees, commissions and services increased $189,000; and noninterest expense increased only $1.3 million, or 2.8%. We are also pleased to report that our loan portfolio increased $2.6 million during the quarter while demand deposits grew $8.0 million. Finally, we continued to make progress on our announced stock buyback plan with the repurchase of 5,850,866 shares at an average price of $12.23 per share. To date, we have repurchased 8,986,989 of the 11,000,000 targeted shares at an average price of $12.14 per share.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the first quarter, net income rose 31.2% from the year earlier, while the figure increased 1166.2% in the fourth quarter of the last fiscal year, 28.5% in the third quarter of the last fiscal year and more than twofold in the second quarter of the last fiscal year.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 16 cents versus a mean estimate of net income of 15 cents per share.

Competitors to Watch: New York Community Bancorp, Inc. (NYSE:NYB), Parkvale Financial Corp. (NASDAQ:PVSA), Prudential Bancorp, Inc. of PA (NASDAQ:PBIP), Malvern Federal Bancorp, Inc. (NASDAQ:MLVF), WVS Financial Corp. (NASDAQ:WVFC), Oneida Financial Corp. (NASDAQ:ONFC), Hudson City Bancorp, Inc. (NASDAQ:HCBK), Berkshire Hills Bancorp, Inc. (NASDAQ:BHLB), and Harleysville Savings Financial Corp. (NASDAQ:HARL).

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(Source: Xignite Financials)