Northwest Bancshares reports lower net income for Q1 2017 year over year and dividend of USD0.16 per share.
M2 EQUITYBITES-April 25, 2017-Northwest Bancshares reports lower net income for Q1 2017 year over year and dividend of USD0.16 per share
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Northwest Bancshares Inc (NasdaqGS:NWBI) on Monday reported net income of USD17.7m or USD0.17 per diluted share for the first quarter ended 31 March 2017, a decrease of USD238,000 compared to the net income of USD18.0m or USD0.18 per diluted share in the same quarter last year.
The company's first quarter net interest income was USD80.6m, increased by USD9.0m or 12.6% from the net interest income of USD71.6m for the first quarter ended 2016. This increase is due primarily due to a USD6.4m or 84.0% decrease in interest expense on borrowed funds as a result of a the payoff of all Federal Home Loan Bank advances during the third quarter of 2016. Further, the increase in net interest income was the result of a USD2.0m or 2.4% increase in interest income on loans receivable due to a USD438.7 m or 6.1% increase in average loans receivable from the prior year.
Non-interest income in the first quarter was USD21.5m, up by by USD2.1m or 10.6% from the non-interest income of USD19.4m for the same quarter last year. Contributing to this increase was an increase in service charges and fees of USD1.6m or 16.4%, which is attributable to the growth in checking accounts resulting from both recent acquisitions and internal growth initiatives. Also, trust and other financial services income increased by USD1.0m or 32.0% and partially offsetting these improvements was a decrease in income from bank owned life insurance of USD527,000 or 33.0% in the first quarter of 2016.
Additionally, the company's board of directors approved a quarterly cash dividend of USD0.16 per share and this 90th consecutive quarterly payment will be made on 18 May 2017, to shareholders of record date as of 4 May 2017. This represents an annual dividend yield of about 3.8% based on the market value of the company's stock as of 31 March 2017.
Northwest Bancshares is the parent of Northwest Bank and is based in Warren, Pennsylvania. The bank was founded in 1896 and is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfilment of business and personal insurance needs. It operates 167 full-service community banking offices; nine free standing drive-through facilities; and 44 consumer finance offices through its subsidiary, Northwest Consumer Discount Company.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Apr 25, 2017|
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