Northwest Bancorp Inc. in Warren, Pa., said Monday that its fourth-quarter earnings fell nearly 34% from a year earlier, to $9.8 million.
Earnings per share fell 31%, to 20 cents.
The $6.5 billion-asset thrift company attributed the drop to a $3.1 million expense relating to the redemption of $99 million of trust-preferred securities and a 6.2% drop in net interest income, to $42.9 million, as a result of a contracting interest rate spread.
With its cost of funds rising faster than its yield on assets, Northwest said, its fourth-quarter return on assets fell 32 basis points, to 0.6%, and its return on equity decreased by over a third, to 6.42%.
For the full year, Northwest's net income decreased 9.3%, to $51.5 million, or $1.03 a share.
William J. Wagner, Northwest's president and chief executive, said in a press release that his company continues to increase its volume of commercial and consumer loans and has added a "significant number of new business bankers to assist with future efforts in this area."
