Northwest Bancshares in Warren, Pa., reported a quarterly loss after prepaying some Federal Home Loan Bank borrowings.
The $9 billion-asset company said in a press release Monday that it lost $7 million, or 7 cents per share, in the second quarter. Northwest earned $15.3 million a year earlier.
Noninterest expenses rose 87% to $103 million, though it included a $37 million prepayment penalty tied to the FHLB borrowings. Northwest said that moves, which it made in advance of buying 18 First Niagara Financial branches, should lower its annual interest expenses by $24 million.
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KeyCorp has received the Federal Reserve Board's approval to buy First Niagara Financial Group. The $4.1 billion deal is expected to be completed on or about Aug. 1.
July 12 -
Northwest Bancshares in Warren, Pa., has agreed to buy Best Insurance Agency, an employee benefits and property and casualty insurance firm in Butler, Pa.
March 23 -
The $9 billion-asset company said in a press release Monday that it will incur about $5 million in additional expenses during the first half of this year to cover the cost of closing the offices.
January 27
The second quarter also included nearly $3 million in charges tied to the consolidation of 24 branches.
The loan-loss provision quadrupled to $4.2 million after Northwest downgraded three commercial banking relationships.
Net interest income rose 23% to $76.7 million. Total loans rose 18% to $7.2 billion, including $982 million in loans Northwest added from last year's purchase of LNB Bancorp. The net interest margin widened by 37 basis points to 3.82%.
Noninterest income rose 22% to $20.3 million, largely because of a rise in service charges and fees.