Northwest Bancshares (NWBI) in Warren, Pa., reported lower quarterly earnings because of a lower net interest margin and higher expenses.
The $8 billion-asset company's earnings fell 18% from a year earlier, to $13.5 million. Earnings per share of 15 cents were 3 cents below the average expectation of analysts polled by Bloomberg.
Net interest income fell 4% from the second quarter of 2012, to $63.3 million. The net interest margin contracted 14 basis points from a year earlier, to 3.50%. The loan-loss provision increased 9% from a year earlier, to $5.4 million.
Noninterest income fell 11% from a year earlier, to $13.4 million, primarily because of a $1.9 million write-down on a foreclosed property and a decline in mortgage income.
Noninterest expenses climbed 1.6% from a year earlier, to $52.8 million. Processing expenses jumped 22% from the second quarter of 2012, to $7.3 million, as the company upgraded and replaced ATMs.