Profile: Northwest Bancshares Inc (NWBI.OQ)
23 Sep 2016
Northwest Bancshares, Inc. (Northwest), incorporated on September 8, 2009, is a savings and loan holding company. The Company's principal business consists of attracting deposits and making loans secured by various types of collateral, including real estate and other assets in the markets in which it operates. Its subsidiary, Northwest Bank, is a Pennsylvania-chartered stock savings bank. Northwest Bank is a community-oriented financial institution, offering personal and business banking solutions, investment management and trust services and insurance products. Through a subsidiary, Northwest Consumer Discount Company, it also offers consumer finance loans.
Northwest Bank operates over 180 community-banking offices throughout its market area in central and western Pennsylvania, western New York, eastern Ohio and Maryland. Northwest Consumer Discount Company operates over 50 consumer finance offices in Pennsylvania. Northwest Bank also offers investment management and trust services and through its subsidiaries, actuarial and benefit plan administration services, as well as property and casualty and employer benefit plan insurance. Its principal lending activities are the origination of fixed-rate loans secured by first mortgages on owner-occupied, one- to four- family residences, shorter term consumer loans, and commercial business and commercial real estate loans.
The Bank's retail branch network encompasses approximately 30 counties in Pennsylvania. In addition, through its consumer finance offices, the Bank operates in over 10 additional counties in Pennsylvania. Its western Pennsylvania market has an economy driven by healthcare and education industries, service businesses, technology companies and small manufacturing operations. Its southeastern Pennsylvania market is primarily driven by service businesses but also serves as a bedroom community to the cities of Baltimore, Maryland and Philadelphia, Pennsylvania.
The Bank's principal lending activities are the origination of fixed-rate and, to a lesser extent, adjustable-rate mortgage loans collateralized by one- to four- family residential real estate, shorter term consumer loans and the origination of loans collateralized by multi-family residential and commercial real estate and commercial business loans. The Bank focuses its lending activities in the geographic areas where it maintains offices. The Bank offers residential mortgage loans with terms ranging from 15 to 30 years, with either fixed or adjustable interest rates. Adjustable rate residential mortgage loans totaled approximately $40.1 million. The Bank offers fixed-rate and adjustable-rate residential construction loans primarily for the construction of owner-occupied one- to four- family residences in its market area to builders or to owners who have a contract for construction.
Home equity loans are offered on a fixed rate basis with terms of over 20 years. Home equity lines of credit are offered on an adjustable-rate basis with terms of over 20 years. Its fixed-rate home equity loans totaled approximately $725.10 million. The principal types of other consumer loans it offers are direct and indirect automobile loans, sales finance loans, unsecured personal loans, credit card loans and loans secured by deposit accounts. These loans are offered with maturities of approximately 10 years. Other consumer loans totaled over $510.6 million. Its multi-family commercial real estate loans are secured by multi-family residences, such as rental properties. Its commercial real estate loans are secured by nonresidential properties, such as hotels, commercial offices, manufacturing facilities and retail establishments. The Company offers commercial loans to finance various activities in its market area, some of which are secured in part by additional real estate collateral. Commercial business loans are offered with both fixed and adjustable interest rates.
The Bank purchases debentures and mortgage-backed securities that generally are issued by the Federal Home Loan Bank, Fannie Mae, Freddie Mac or Ginnie Mae. The Bank invests in mortgage-backed securities. Its total residential mortgage-backed securities available for sale totaled approximately $476.90 million; total investment securities available for sale totaled approximately $392.10 million; total residential mortgage-backed securities held to maturity amounted to approximately $25.10 million and total investment securities held to maturity amounted to over $6.60 million.
Sources of Funds
The Bank has deposits through the Certificate of Deposit Account Registry Service (CDARS) program. In addition to the Federal Home Loan Bank of Pittsburgh, the Bank has borrowing facilities with the Federal Reserve Bank, approximately two correspondent banks and the Bank borrows funds, in the form of corporate repurchase agreements, from municipalities, corporations and school districts. Its amount of deposits totaled to over $6,612.60 million.
The Company's sole direct consolidated subsidiary is Northwest Bank. It also owns all of the common stock of over three statutory business trusts: Northwest Bancorp Capital Trust III, a Delaware statutory business trust, Northwest Bancorp Statutory Trust IV, a Connecticut statutory business trust and LNB Trust II, a Delaware statutory business trust (the Trusts). Northwest Bank has approximately 10 subsidiaries: Northwest Settlement Agency, LLC, Great Northwest Corporation, Northwest Financial Services, Inc., Northwest Advisors, Inc., Northwest Consumer Discount Company, Inc., Allegheny Services, Inc., Boetger and Associates, Inc., Northwest Capital Group, Inc., and The Bert Company. Northwest Settlement Agency, LLC provides title insurance to borrowers of Northwest Bank and other lenders. Great Northwest Corporation holds equity investments in Government-assisted, low-income housing projects in various locations throughout its market area. Northwest Financial Services, Inc. provides retail brokerage services. Northwest Advisors, Inc., a federally registered investment advisor (RIA), provides investment management programs and investment portfolio planning services.
Northwest Consumer Discount Company, Inc. operates over 50 consumer finance offices throughout Pennsylvania. Allegheny Services, Inc. is a Delaware investment company that holds mortgage loans originated through its wholesale lending operation, as well as municipal bonds. In addition, Allegheny Services, Inc. funds the operation of the Northwest Consumer Discount Company through an intercompany loan relationship. Boetger and Associates, Inc. (doing business as Northwest Retirement Services) is an actuarial and employee benefits consulting firm that specializes in the design, implementation and administration of qualified and non-qualified retirement plan programs. Northwest Capital Group, Inc's principal activity is to own, operate and divest of properties. The Bert Company (doing business as Northwest Insurance Services) is an employee benefits and property and casualty insurance firm specializing in commercial and personal insurance, as well as retirement benefit plans.
Northwest Bancshares Inc
100 Liberty St
WARREN PA 16365-2411