Northwest Bancorp, Inc. Announces Quarterly Earnings and Dividend Declaration

WARREN, Pa., April 20 /PRNewswire-FirstCall/ -- Northwest Bancorp, Inc.
(Nasdaq: NWSB) announced net income for the quarter ended March 31, 2009 of
$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 returns on average
shareholders' equity and average assets for the current quarter were 7.93% and
0.70% compared to 8.15% and 0.75% for the same quarter last year.

Earnings in the current period were significantly impacted by a $2.4 million
after tax write-down of a parcel of land in Florida that the Company
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 this announcement, William J. Wagner, President and CEO, noted, "We
are pleased to report continued strong earnings during a period of
considerable economic weakness. Our net interest margin remains exceptionally
strong, fee income is increasing and our operating expenses are being
controlled. We were disappointed that quarterly earnings were again
negatively impacted by the write-down of an asset. As the recession grows
longer and deeper, occasional problems may continue to develop with industries
and borrowers that are most significantly impacted by current economic
conditions. However, we have incurred minimal losses in our core markets in
Pennsylvania and New York where real estate values and employment have
generally faired better than national averages. Loans in those two markets
represent over 88% of our portfolio. Loans 90 days or more delinquent in
those 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 May 14, 2009, to shareholders of
record as of April 30, 2009. This represents the 58th consecutive quarter in
which the Company has paid a cash dividend.

Net interest income increased by $9.7 million, or 20.0%, for the quarter ended
March 31, 2009 compared to the same quarter last year. Net interest margin
for the quarter ended March 31, 2009 was 3.71% compared to 3.24% for the
quarter ended March 31, 2008. The increase in net interest margin compared to
the prior year resulted primarily from an improvement in asset mix, with a
greater concentration of assets invested in loans, and an improvement in
funding mix, with a significant reduction in the reliance 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 the
general economic factors used in the formulation of the reserve for loan
losses along with an increase in troubled loans. Loans with payments 90 days
or more delinquent have 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 from loans charged-off were $3.2 million in each of the quarters ended
March 31, 2009 and December 31, 2008 and were $1.4 million higher than the
losses for the quarter ended March 31, 2008.

Noninterest expense 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
March 31, 2008 primarily due to three areas. Compensation and employee
benefits increased by $1.2 million, or 5.3%, as a result of normal annual
merit increases and an increase in pension expense. Processing expenses
increased by $1.1 million, or 26.3%, as a result of the Company's continued
implementation of new technology, including the deployment of a new customer
service platform. FDIC insurance expense increased by $1.1 million as a
result of the FDIC's industry-wide increase in deposit insurance premiums,
which became effective on January 1, 2009. Offsetting these increases in
expense was a decrease in the amortization of intangible assets of $458,000,
or 35.2%, and a decrease in the 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 approved a program to
repurchase an additional 1,000,000 shares of the Company's publicly traded
common stock. This authorization is in addition to 273,600 shares remaining
to be purchased from a previously announced repurchase program. Repurchases
will be subject to availability, general market conditions, the trading price
of the stock, alternate uses of capital and the Company's financial
performance. Repurchased shares will be 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 Northwest Savings Bank, currently operates 168
community-banking locations in Pennsylvania, New York, Ohio, Maryland and
Florida. Northwest Savings Bank is a full-service financial institution
offering a complete line of retail and business banking products as well as
investment management and trust services. The Company also operates 49
consumer finance offices in Pennsylvania through its subsidiary, Northwest
Consumer Discount Company.

Northwest Bancorp, Inc.'s stock is listed on the NASDAQ Global Select Market.
Additional information regarding Northwest Bancorp, Inc. can be accessed
on-line 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 limitations, statements relating
to the earnings outlook of the Company. These forward-looking statements
involve certain risks and uncertainties. Factors that may cause actual results
to differ materially from those contemplated by such forward-looking
statements, include among others, the following possibilities: (1) changes in
the interest rate environment; (2) competitive pressure among financial
services companies; (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 efficiencies; (6) difficulties in the integration of
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 release.

Northwest Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except per share amounts)

March 31, December 31,
Assets 2009 2008
------ ---- ----
Cash and cash equivalents $40,963 55,815
Interest-earning deposits in other financial
institutions 223,714 16,795
Federal funds sold and other short-term
investments 1,043 7,312
Marketable securities available-for-sale
(amortized cost of
$1,078,557 and $1,144,435) 1,074,370 1,139,170
--------- ---------
Total cash, interest-earning deposits
and marketable securities 1,340,090 1,219,092

Loans held for sale 32,666 18,738
Mortgage loans-one-to four-family 2,390,173 2,447,506
Home equity loans 1,004,223 1,013,876
Consumer loans 294,747 289,602
Commercial real estate loans 1,101,141 1,071,182
Commercial business loans 374,756 355,917
------- -------
Total loans receivable 5,197,706 5,196,821
Allowance for loan losses (57,487) (54,929)
------- -------
Loans receivable, net 5,140,219 5,141,892

Federal Home Loan Bank stock, at cost 63,143 63,143
Accrued interest receivable 26,910 27,252
Real estate owned, net 13,848 16,844
Premises and Equipment, net 117,092 115,842
Bank owned life insurance 124,667 123,479
Goodwill 171,363 171,363
Mortgage servicing rights 6,259 6,280
Other intangible assets 6,551 7,395
Other assets 31,709 37,659
------ ------
Total assets $7,041,851 6,930,241
========== =========

Liabilities and Shareholders' equity
------------------------------------
Liabilities:
Noninterest-bearing demand deposits $425,272 394,011
Interest-bearing demand deposits 723,999 706,120
Savings deposits 1,545,974 1,480,620
Time deposits 2,515,769 2,457,460
--------- ---------
Total deposits 5,211,014 5,038,211

Borrowed funds 994,802 1,067,945
Advances by borrowers for taxes and
insurance 25,860 26,190
Accrued interest payable 5,059 5,194
Other liabilities 72,462 70,663
Junior subordinated debentures 108,249 108,254
------- -------
Total liabilities 6,417,446 6,316,457

Shareholders' equity:
Preferred stock, $0.10 par value:
50,000,000 shares authorized, no shares
issued - -
Common stock, $0.10 par value:
500,000,000 shares authorized,
51,251,318 and 51,244,974 issued,
respectively 5,125 5,124
Paid-in-capital 218,830 218,332
Retained earnings 498,677 490,326
Accumulated other
comprehensive (loss)/income (28,804) (30,575)
Treasury stock of
2,742,800 and 2,742,800
shares, respectively, at cost (69,423) (69,423)
-------- --------
Total shareholders' equity 624,405 613,784
------- -------
Total liabilities and shareholders'
equity $7,041,851 6,930,241
========== =========

Equity to assets 8.87% 8.86%
Tangible common equity 6.42% 6.36%
Book value per share $12.87 $12.65
Closing market price per share $16.90 $21.38
Full time equivalent employees 1,859 1,860
Number of banking offices 168 167

Northwest Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)

Three months ended
March 31,
2009 2008
---- ----
Interest income:
Loans receivable $80,871 80,889
Mortgage-backed securities 7,405 7,170
Taxable investment securities 1,546 3,849
Tax-free investment securities 2,932 2,993
Interest-earning deposits 39 1,796
-- -----
Total interest income 92,793 96,697

Interest expense:
Deposits 24,637 42,830
Borrowed funds 10,189 5,557
------ -----
Total interest expense 34,826 48,387

Net interest income 57,967 48,310
Provision for loan losses 5,781 2,294
----- -----
Net interest income after provision
for loan losses 52,186 46,016

Noninterest income:
Service charges and fees 7,708 7,638
Trust and other financial
services income 1,348 1,748
Insurance commission income 549 580
Loss on real estate owned, net (3,879) (87)
Gain on sale of investments, net 42 903
Other-than-temporary impairment of
investments - (320)
Income from bank owned life
insurance 1,187 1,192
Mortgage banking income 1,724 442
Non-cash recovery/(impairment) of
servicing assets 90 (100)
Other operating income 705 1,019
--- -----
Total noninterest income 9,474 13,015

Noninterest expense:
Compensation and employee benefits 23,926 22,722
Premises and occupancy costs 5,978 5,725
Office operations 3,013 3,257
Processing expenses 5,308 4,204
Advertising 929 979
Federal deposit insurance premiums 1,890 824
Professional services 641 735
Amortization of intangible assets 844 1,302
Loss on early extinguishment of debt - 705
Other expense 1,737 1,974
----- -----
Total noninterest expense 44,266 42,427
------ ------

Income before income taxes 17,394 16,604
Income taxes 5,092 3,982
----- -----

Net income $12,302 12,622
======= ======

Basic earnings per share $0.25 $0.26

Diluted earnings per share $0.25 $0.26

Annualized return on average equity 7.93% 8.15%
Annualized return on average assets 0.70% 0.75%

Basic common shares outstanding 48,411,843 48,329,901
Diluted common shares outstanding 48,524,800 48,606,334

Northwest Bancorp, Inc. and Subsidiaries
Supplementary data
(Dollars in thousands)

Three months Year
ended March 31, ended December 31,
2009 2008 2008 2007
---- ---- ---- ----
Allowance for loan losses
Beginning balance $54,929 41,784 41,784 37,655
Provision 5,781 2,294 22,851 8,743
Charge-offs (3,504) (2,291) (11,610) (8,190)
Recoveries 281 468 1,904 1,457
Acquisitions - - - 2,119
-- -- -- -----
Ending balance $57,487 42,255 54,929 41,784
======= ====== ====== ======

Net charge-offs to average loans,
annualized 0.25% 0.15% 0.19% 0.14%

March 31, December 31,
2009 2008 2008 2007
---- ---- ---- ----
Nonperforming loans $105,533 59,153 99,203 49,610
Real estate owned, net 13,848 9,271 16,844 8,667
------ ----- ------ -----
Nonperforming assets $119,381 68,424 116,047 58,277
======== ====== ======= ======

Nonperforming loans to total loans 2.05% 1.21% 1.91% 1.03%

Nonperforming assets to total
assets 1.70% 1.00% 1.67% 0.87%

Allowance for loan losses to total
loans 1.11% 0.87% 1.06% 0.86%

Allowance for loan losses to
nonperforming loans 54.47% 71.43% 55.37% 84.22%

Reconciliation of the GAAP financial measures to non-GAAP measures:

Three months
ended March 31,
2009 2008
---- ----

GAAP net income $12,302 12,622
Excluding (after-tax):
(Gain) on Visa initial public offering - (409)
Impairment write-down on investment
securities - 195
Non-cash write-down of real estate owned 2,356 -
Prepayment penalty on FHLB borrowings - 430
Valuation allowance on MSRs (55) 61
Reversal of tax reserves - (706)
-- ----
Non-GAAP net income $14,603 12,193
======= ======

Non-GAAP diluted EPS $0.30 $0.25
Non-GAAP annualized return on average equity 9.41% 7.87%
Non-GAAP annualized return on average assets 0.84% 0.72%

Northwest Bancorp, Inc. and Subsidiaries
Supplementary data
(Dollars in thousands)

Loans past due schedule
(Number of loans and dollar amount of loans)
March 31, December 31,
--------- ------------
2009 * 2008 *
---- ----
Loans past due 30 days to 59 days:
One- to four- family
residential loans 307 $26,183 1.1% 392 $32,988 1.3%
Consumer loans 854 10,551 0.8% 1,157 11,295 0.9%
Multifamily and
commercial RE loans 104 26,139 2.4% 99 18,901 1.8%
Commercial business loans 72 8,887 2.4% 86 7,700 2.2%
-- ----- --- -- ----- ---
Total loans past due 30
days to 59 days 1,337 $71,760 1.4% 1,734 $70,884 1.4%
===== ======= === ===== ======= ===

Loans past due 60 days to
89 days:
One- to four- family
residential loans 41 $4,520 0.2% 101 $7,599 0.3%
Consumer loans 284 1,981 0.2% 379 2,836 0.2%
Multifamily and commercial
RE loans 45 6,397 0.6% 54 8,432 0.8%
Commercial business loans 31 2,000 0.5% 45 3,801 1.1%
-- ----- --- -- ----- ---
Total loans past due 60 days to
89 days 401 $14,898 0.3% 579 $22,668 0.4%
=== ======= === === ======= ===

Loans past due 90 days or more:
One- to four- family
residential loans 226 $21,004 0.9% 223 $20,435 0.8%
Consumer loans 666 9,617 0.7% 687 9,756 0.7%
Multifamily and
commercial RE loans 180 47,779 4.3% 155 43,828 4.1%
Commercial business loans 120 27,133 7.2% 114 25,184 7.1%
--- ------ --- --- ------ ---
Total loans past due 90
days or more 1,192 $105,533 2.0% 1,179 $99,203 1.9%
===== ======== === ===== ======= ===

December 31,
------------
2007 *
----
Loans past due 30 days to 59 days:
One- to four- family
residential loans 361 $27,270 1.1%
Consumer loans 1,331 10,550 0.8%
Multifamily and commercial
RE loans 88 11,331 1.3%
Commercial business loans 70 9,947 3.0%
-- -----
Total loans past due 30 days
to 59 days 1,850 $59,098 1.2%
===== =======

Loans past due 60 days to 89 days:
One- to four- family
residential loans 99 $6,077 0.3%
Consumer loans 437 2,676 0.2%
Multifamily and commercial
RE loans 41 4,984 0.6%
Commercial business loans 34 2,550 0.8%
-- -----
Total loans past due 60 days
to 89 days 611 $16,287 0.3%
=== =======

Loans past due 90 days or more:
One- to four- family
residential loans 193 $12,542 0.5%
Consumer loans 744 7,582 0.6%
Multifamily and commercial
RE loans 105 24,323 2.9%
Commercial business loans 84 5,163 1.6%
-- -----
Total loans past due 90 days
or more 1,126 $49,610 1.0%
===== =======

* Represents delinquency, in dollars, divided by the respective total
amount of that type of loan outstanding.

Northwest Bancorp, Inc. and Subsidiaries
Analysis of loan portfolio by geographic location as of March 31, 2009:
(Dollars in thousands)

Loans outstanding:
------------------
Mortgage (1) Consumer (2)
-------- --------

Pennsylvania $2,039,087 84.2% 1,138,532 87.6%
New York 134,593 5.6% 71,044 5.5%
Ohio 16,164 0.7% 13,156 1.0%
Maryland 162,045 6.7% 30,878 2.4%
Florida 34,436 1.4% 10,950 0.8%
Other 36,514 1.5% 34,410 2.6%
------ --- ------ ---
Total $2,422,839 100.0% 1,298,970 100.0%
========== ===== ========= =====

Loans outstanding:
------------------
Commercial (3) Total (4)
---------- -----

Pennsylvania 941,395 63.8% 4,119,014 79.2%
New York 274,054 18.7% 479,691 9.2%
Ohio 5,722 0.4% 35,042 0.7%
Maryland 181,705 12.3% 374,628 7.2%
Florida 56,849 3.9% 102,235 2.0%
Other 16,172 1.1% 87,096 1.7%
------ --- ------ ---
Total 1,475,897 100.0% 5,197,706 100.0%
========= ===== ========= =====

(1) - Percentage of total mortgage loans
(2) - Percentage of total consumer loans
(3) - Percentage of total commercial loans
(4) - Percentage of total loans

Loans 90 or more past due:
--------------------------
Mortgage (5) Consumer (6)
-------- --------

Pennsylvania $10,638 0.5% 7,006 0.6%
New York 84 0.1% 371 0.5%
Ohio 108 0.7% 41 0.3%
Maryland 532 0.3% 586 1.9%
Florida 5,549 16.1% 1,087 9.9%
Other 4,093 11.2% 526 1.5%
----- ---- --- ---
Total $21,004 0.9% 9,617 0.7%
======= === ===== ===

Loans 90 or more past due:
--------------------------
Commercial (7) Total (8)
---------- -----

Pennsylvania 41,167 4.4% 58,811 1.4%
New York 1,356 0.5% 1,811 0.4%
Ohio 176 3.1% 325 0.9%
Maryland 9,883 5.4% 11,001 2.9%
Florida 14,943 26.3% 21,579 21.1%
Other 7,387 45.7% 12,006 13.8%
----- ---- ------ ----
Total 74,912 5.1% 105,533 2.0%
====== === ======= ===

(5) - Percentage of mortgage loans in that geographic area
(6) - Percentage of consumer loans in that geographic area
(7) - Percentage of commercial loans in that geographic area
(8) - Percentage of total loans in that geographic area

Northwest Bancorp, Inc. and Subsidiaries
Supplementary data
(Dollars in thousands)

Marketable securities available-for-sale as of March 31, 2009:
--------------------------------------------------------------

Gross Gross
unrealized unrealized
Amortized holding holding Market
cost gains losses value
---- ----- ------ -----

Debt issued by the U.S.
government and agencies:
Due in one year or less $89 - (3) 86
Debt issued by government
sponsored enterprises:
Due in one year or less 991 24 - 1,015
Due in one year -
five years 1,969 179 - 2,148
Due in five years -
ten years 24,839 1,524 - 26,363
Due after ten years 64,030 4,192 (6) 68,216
Equity securities 954 228 (11) 1,171
Municipal securities:
Due in one year -
five years 460 1 - 461
Due in five years -
ten years 40,363 771 (19) 41,115
Due after ten years 210,917 2,408 (6,967) 206,358
Corporate trust preferred
securities:
Due after ten years 21,082 48 (11,907) 9,223
Mortgage-backed securities:
Fixed rate pass-through 176,163 7,813 (6) 183,970
Variable rate pass-through 265,437 5,908 (445) 270,900
Fixed rate CMO 55,667 742 (2,870) 53,539
Variable rate CMO 215,596 170 (5,961) 209,805
------- --- ------ -------

Total mortgage-backed
securities 712,863 14,633 (9,282) 718,214
------- ------ ------ -------

Total marketable
securities
available-for-sale $1,078,557 24,008 (28,195) 1,074,370
========== ====== ======= =========

Issuers of mortgage-backed securities as
of March 31, 2009:
----------------------------------------
Fannie Mae $273,206 6,458 (1,173) 278,491
Ginnie Mae 94,282 1,707 (116) 95,873
Freddie Mac 303,462 6,468 (2,606) 307,324
Non-agency 41,913 - (5,387) 36,526
------ -- ------ ------
Total $712,863 14,633 (9,282) 718,214
======== ====== ====== =======

Average Balance Sheet
(Dollars in Thousands)

The following table sets forth certain information relating to the
Company's average balance sheet and reflects the average yield on assets
and average cost of liabilities for the periods indicated. Such yields
and costs are derived by dividing income or expense by the average balance
of assets or liabilities, respectively, for the periods presented.
Average balances are calculated using daily averages.

Three months ended March 31,
2009 2008
--------------------------- --------------------------
Average Interest Avg. Average Interest Avg.
Balance Yield/ Balance Yield/
Cost Cost
ASSETS:
-------
Interest-earning
assets:
Loans
receivable
(a)(b)(d) $5,208,603 81,291 6.26% 4,858,928 81,400 6.65%
Mortgage-
backed
securities(c) 738,132 7,405 4.01% 574,556 7,170 4.99%
Investment
securities(c)
(d)(e) 386,097 6,057 6.28% 521,948 8,044 6.16%
FHLB stock 63,143 - 0.00% 32,664 411 5.03%
Other interest-
earning
deposits 76,937 39 0.20% 231,010 1,796 3.11%
------ -- ------- ------- ----- ----

Total interest-
earning
assets 6,472,912 94,792 5.87% 6,219,106 98,821 6.32%
--------- ------ --------- ------
Noninterest
earning
assets(f) 515,476 516,356
------- -------

TOTAL ASSETS $6,988,388 6,735,462
========== =========

LIABILITIES AND
SHAREHOLDERS'
EQUITY:
---------------
Interest-bearing
liabilities:
Savings
accounts $790,467 1,453 0.75% 751,939 2,226 1.19%
Interest-
bearing
demand
accounts 709,351 806 0.46% 725,657 2,136 1.18%
Money market
accounts 704,752 2,523 1.45% 704,856 5,265 3.00%
Certificate
accounts 2,469,283 19,855 3.26% 2,995,551 33,203 4.46%
Borrowed
funds(g) 1,043,501 8,699 3.38% 378,191 3,903 4.15%
Junior
subordinated
debentures 108,249 1,490 5.51% 108,312 1,654 6.04%
------- ----- ------- -----

Total interest-
bearing
liabilities 5,825,603 34,826 2.42% 5,664,506 48,387 3.44%

Noninterest
bearing
liabilities 541,899 451,473
------- -------

Total
liabilities 6,367,502 6,115,979

Shareholders'
equity 620,886 619,483
------- -------

TOTAL
LIABILITIES
AND EQUITY $6,988,388 6,735,462
========== =========

Net interest
income/Interest
rate spread 59,966 3.45% 50,434 2.88%

Net interest-
earning assets/
Net interest
margin $647,309 3.71% 554,600 3.24%

Ratio of interest-
earning assets to
interest-bearing
liabilities 1.11X 1.10X

(a) Average gross loans receivable includes loans held as available-for-
sale and loans placed on nonaccrual status.
(b) Interest income includes accretion/ amortization of deferred loan
fees/ expenses, which was not material.
(c) Average balances do not include the effect of unrealized gains or
losses on securities held as available-for-sale.
(d) Interest income on tax-free investment securities and tax-free loans
are presented on a fully taxable equivalent basis.
(e) Average balances include Fannie Mae and Freddie Mac stock.
(f) Average balances include the effect of unrealized gains or losses on
securities held as available-for-sale.
(g) Average balances include FHLB borrowings, securities sold under
agreements to repurchase and other borrowings.

SOURCE Northwest Bancorp, Inc.

William J. Wagner, President and Chief Executive Officer, +1-814-726-2140, or
William W. Harvey, Jr., Executive Vice President and Chief Financial Officer,
+1-814-726-2140