Northwest Bancorp, Inc. Announces Quarterly Results and Declaration of Dividend

Northwest Bancorp, Inc. (Nasdaq: NWSB) announced net income for the quarter ended 31 March 2009, 12.3 million, or $ 0.25 per diluted share. This represents a decrease of $ 320,000, or 2.5% over the same quarter last year when net income was $ 12.6 million, or $ 0.26 per diluted share. The annualized return on average equity and average assets for the current quarter were 7.93% and 0.70% from 8.15% and 0.75% for the same quarter last year last.

Earnings for the current year were significantly impacted by $ 2.4 million after tax, impairment of a parcel of land in Florida, the company has previously acquired through foreclosure. Excluding this item, earnings for the quarter ended March 31, 2009 were $ 14.7 million, or $ 0.30 per diluted share.

In making the announcement, William J. Wagner, President and CEO, noted: "We are pleased to report strong earnings during a period of economic weakness. Our net interest margin remains strong, is more and more fee income and our operating expenses are to be controlled. We were disappointed that the quarterly results were further affected by the depreciation of an asset. As the recession longer and deeper, occasional problems in May continue to develop with the industry and borrowers that are most affected by current economic conditions. However, we have a minimum of losses in our major markets in Pennsylvania and New York, where real estate values and employment have generally faired better than the national average. loans to these two markets represent over 88% of our portfolio. Loans 90 days or more delinquent in these two states are only 1.3% of the loans we made in those states. "

The Company also announced that its Board of Directors declared a quarterly cash dividend of $ 0.22 per share, payable on 14 May 2009, to shareholders of record as of April 30, 2009. This represents the 58th consecutive quarter in which the Company paid a cash dividend.

Net interest income increased by $ 9.7 million or 20.0% for the quarter ended 31 March 2009, compared to the same quarter last year. Net interest margin for the quarter ended March 31, 2009 was 3.71% from 3.24% for the quarter ended March 31, 2008. The increase in net interest margin compared to the prior year due primarily to an improvement in asset mix, with a greater concentration of assets invested in loans and an improvement in financing mixture, with a significant reduction of dependence on high cost certificates of deposit.

The provision for loan losses increased by $ 3.5 million to 5.8 million for the quarter ended March 31, 2009, compared to $ 2.3 million for the same quarter last year. This increase is primarily attributable to a decline in general economic factors used in the formulation of the reserve for loan losses and increased difficulty in loans. Loans with payments 90 days or more delinquency had increased to $ 105.5 million at March 31, 2009 from $ 99.2 million at December 31, 2008 and $ 59.2 million at March 31, 2008 . Net losses on loans were charged-off $ 3.2 million in each of the quarters ended March 31, 2009 and December 31, 2008 and $ 1.4 million more than the losses for the quarter ended March 31, 2008 .

Noninterest increased by $ 1.9 million, or 4.3%, to $ 44.3 million for the quarter ended March 31, 2009 from $ 42.4 million for the quarter ended 31 March 2008, mainly due to three areas. Compensation and employee benefits increased by $ 1.2 million, or 5.3%, due to normal annual merit increases and increased pension expense. Treatment expenditures increased by $ 1.1 million, or 26.3%, due to the Company of the continued application of new technologies, including the deployment of a new service platform to customers. FDIC insurance increased by $ 1.1 million as a result of the FDIC of the total industry increase premiums for deposit insurance, which became effective January 1, 2009. Compensation of these increases was a decrease in amortization of intangible assets of $ 458,000, or 35.2%, and decrease in loss on early extinguishment of debt, which was $ 705,000 less than it was in 2008.

The Company also announced that its Board of Directors has approved a buyback program of another 1000000 shares of the Company's publicly traded shares. This authorization is in addition to 273,600 shares remaining to purchase a buyback program previously announced. Redemptions will be subject to availability, general market conditions, share prices, alternative uses of capital and the financial performance of the company. Shares repurchased are held as treasury shares and will be available for general corporate purposes.

Founded in 1896 and headquartered in Warren, Pennsylvania, Northwest Bancorp, Inc., through its subsidiary savings bank of the North West, currently operates 168 community banking locations in Pennsylvania, New York , Ohio, Maryland and Florida. Savings Bank North-West is a full service financial institution offering a full range of retail and business banking products as well as investment management and trust services. The Company also operates 49 offices in consumer credit in Pennsylvania, through its subsidiary, the North West Company Discount consumers.

Northwest Bancorp, Inc. s is listed on the NASDAQ Global Select Market. Additional information regarding Northwest Bancorp, Inc. can be found online at www.northwestsavingsbank.com.

Forward Looking Statements - This press release May contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancorp, Inc., including without limitation, statements regarding revenue outlook of the Company. These forward-looking statements involve risks and uncertainties. Factors that May results to differ materially from those contemplated by these forward-looking statements include, among others, the following possibilities: (1) changes in interest rate environment, (2) competitive pressure among companies Financial Services (3) general economic conditions, including an increase in non-performing loans that could result from an economic downturn (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiency, (6) difficulties in integrating acquired businesses and (7) increased risk associated with an increase in commercial real estate and business loans and non-performing loans. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this press release. (source)