<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the quarterly period ended September 30, 2000
or
( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the transition period from to
--------- --------
Commission File Number 0-23817
-------
Northwest Bancorp, Inc.
--------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 23-2900888
-------------------------- -----------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
Liberty Street at Second Avenue, Warren, Pennsylvania 16365
----------------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(814) 726-2140
--------------
(Registrant's telephone number, including area code)
Not applicable
-----------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:
Common Stock (.10 par value) 47,373,569 shares outstanding as of September
30, 2000.
<PAGE>
NORTHWEST BANCORP, INC. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION PAGE
<S> <C> <C>
Item 1. Financial Statements
Consolidated Statements of Financial Condition as of
September 30, 2000 and June 30, 2000 (Unaudited) 1
Consolidated Statements of Income for the three months
ended September 30, 2000 and 1999 (Unaudited) 2
Consolidated Statements of Changes in Shareholders' Equity for
the three months ended September 30, 2000 and 1999 (Unaudited) 3
Consolidated Statements of Cash Flows for the three
months ended September 30, 2000 and 1999 (Unaudited) 4
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Item 3. Quantitative and Qualitative Disclosures about Market Risk 18
PART II OTHER INFORMATION
Item 1. Legal Proceedings 19
Item 2. Changes in Securities 19
Item 3. Defaults Upon Senior Securities 19
Item 4. Submission of Matters to a Vote of Security Holders 19
Item 5. Other Information 20
Item 6. Exhibits and Reports on Form 8-K 20
Signature 21
</TABLE>
<PAGE>
ITEM 1. FINANCIAL STATEMENTS
NORTHWEST BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
SEPTEMBER 30, JUNE 30,
ASSETS 2000 (unaudited) 2000
------------------------------------------------- ---------------- ----------
CASH AND CASH EQUIVALENTS $ 59,316 82,305
INTEREST-EARNING DEPOSITS IN OTHER FINANCIAL
INSTITUTIONS 7,138 8,461
MARKETABLE SECURITIES AVAILABLE-FOR-SALE
(AMORTIZED COST OF $386,113 AND $395,830) 380,481 387,983
MARKETABLE SECURITIES HELD-TO-MATURITY (MARKET
VALUE OF $243,958 AND $222,364) 258,607 237,756
------------- ----------
TOTAL CASH, INTEREST-EARNING DEPOSITS AND
MARKETABLE SECURITIES 705,542 716,505
LOANS RECEIVABLE, NET OF ALLOWANCE FOR ESTIMATED
LOSSES OF $18,775 AND $18,260 2,625,621 2,544,630
FEDERAL HOME LOAN BANK STOCK, AT COST 21,269 21,269
ACCRUED INTEREST RECEIVABLE 17,949 15,978
REAL ESTATE OWNED, NET 2,038 2,144
PREMISES AND EQUIPMENT, NET 41,467 40,953
GOODWILL AND OTHER INTANGIBLES 50,764 52,300
OTHER ASSETS 11,402 13,513
------------- ----------
TOTAL ASSETS $ 3,476,052 3,407,292
============= ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
-------------------------------------------------
LIABILITIES:
DEPOSITS $ 2,885,063 2,886,509
BORROWED FUNDS 314,914 239,941
ADVANCES BY BORROWERS FOR TAXES AND INSURANCE 11,238 22,557
ACCRUED INTEREST PAYABLE 1,998 2,352
OTHER LIABILITIES 8,541 8,045
------------- ----------
TOTAL LIABILITIES 3,221,754 3,159,404
SHAREHOLDERS' EQUITY:
COMMON STOCK, $.10 PAR VALUE: 100,000,000 SHARES
AUTHORIZED, 47,373,569 AND 47,360,769 ISSUED
AND OUTSTANDING, RESPECTIVELY 4,737 4,736
PAID-IN CAPITAL 71,020 70,949
RETAINED EARNINGS 182,266 177,371
ACCUMULATED OTHER COMPREHENSIVE INCOME:
NET UNREALIZED GAIN/(LOSS) ON SECURITIES
AVAILABLE-FOR-SALE, NET OF INCOME TAXES (3,661) (5,104)
UNEARNED RECOGNITION AND RETENTION PLAN SHARES (64) (64)
------------- ----------
254,298 247,888
------------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,476,052 3,407,292
============= ==========
See accompanying notes to unaudited consolidated financial statements
1
<PAGE>
NORTHWEST BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED SEPTEMBER 30,
2000 1999
------------------- -------------------
<S> <C> <C>
INTEREST INCOME:
LOANS RECEIVABLE $ 53,009 46,555
MORTGAGE-BACKED SECURITIES 7,260 6,062
TAXABLE INVESTMENT SECURITIES 2,805 2,929
TAX-FREE INVESTMENT SECURITIES 1,080 1,031
INTEREST-EARNING DEPOSITS 112 247
------------------- -------------------
TOTAL INTEREST INCOME 64,266 56,824
INTEREST EXPENSE:
DEPOSITS 32,430 26,462
BORROWED FUNDS 4,005 5,188
------------------- -------------------
TOTAL INTEREST EXPENSE 36,435 31,650
NET INTEREST INCOME 27,831 25,174
PROVISION FOR LOAN LOSSES 1,295 624
------------------- -------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 26,536 24,550
NONINTEREST INCOME:
LOAN FEES AND SERVICE CHARGES 258 358
SERVICE CHARGES ON DEPOSIT ACCOUNTS 1,983 1,228
GAIN (LOSS) ON SALE OF MARKETABLE SECURITIES, NET 0 36
GAIN (LOSS) ON SALE OF LOANS, NET 57 (7)
GAIN (LOSS) ON SALE OF REAL ESTATE OWNED, NET 12 25
INSURANCE COMMISSION INCOME 566 516
OTHER OPERATING INCOME 322 202
------------------- -------------------
TOTAL NONINTEREST INCOME 3,198 2,358
NONINTEREST EXPENSE:
COMPENSATION AND EMPLOYEE BENEFITS 10,732 9,524
PREMISES AND OCCUPANCY COSTS 2,431 2,115
OFFICE OPERATIONS 1,204 1,179
FEDERAL DEPOSIT INSURANCE PREMIUMS 146 295
DATA PROCESSING 650 674
CHECK PROCESSING AND ATM EXPENSE 847 803
BANK SERVICE CHARGES 498 288
ADVERTISING 380 498
LEGAL, AUDIT AND PROFESSIONAL SERVICES 217 292
REAL ESTATE OWNED EXPENSE 113 191
AMORTIZATION OF INTANGIBLES 1,572 1,104
OTHER EXPENSES 625 479
------------------- -------------------
TOTAL NONINTEREST EXPENSE 19,415 17,442
INCOME BEFORE INCOME TAXES 10,319 9,466
FEDERAL AND STATE INCOME TAXES 3,529 3,473
------------------- -------------------
NET INCOME $ 6,790 5,993
=================== ===================
BASIC AND DILUTED EARNINGS PER SHARE $0.14 $0.13
=================== ===================
</TABLE>
See accompanying notes to unaudited consolidated financial statements
2
<PAGE>
NORTHWEST BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Common Stock
---------------------------------------- Paid-in
Shares Amount Capital
------------------ -------------- -------------
<S> <C> <C> <C>
Beginning balance at June 30, 1999 47,355,073 $ 4,736 70,374
Comprehensive income:
Net income - - -
Change in unrealized loss on securities,
net of tax and reclassification adjustment - - -
------------------ -------------- -------------
Total comprehensive income - - -
Exercise of stock options 1,920 - 11
ESOP shares released - - -
RRP shares released - - -
Dividends declared - - -
------------------ -------------- -------------
Ending balance at September 30, 1999 47,356,993 $ 4,736 70,385
================== ============== =============
<CAPTION>
Accum. Unearned
Other Employee
Compre- Stock
Retained hensive Ownership
Earnings Income (Loss) Plan Shares
---------------- --------------------- -------------------
<S> <C> <C> <C>
Beginning balance at June 30, 1999 157,745 1,978 (561)
Comprehensive income: 5,993 - -
Net income
Change in unrealized loss on securities,
net of tax and reclassification adjustment - (2,866) -
---------------- --------------------- -------------------
Total comprehensive income 5,993 (2,866) -
Exercise of stock options - - -
ESOP shares released - - -
RRP shares released - - -
Dividends declared (1,895) - -
---------------- --------------------- -------------------
Ending balance at September 30, 1999 161,843 (888) (561)
================ ===================== ===================
<CAPTION>
Unearned
Recognition
and Total
Retention Shareholders'
Plan Shares Equity
------------------- ---------------------
<S> <C> <C>
Beginning balance at June 30, 1999 (615) 233,657
Comprehensive income:
Net income - 5,993
Change in unrealized loss on securities,
net of tax and reclassification adjustment - (2,866)
------------------- ---------------------
Total comprehensive income - 3,127
Exercise of stock options - 11
ESOP shares released - 0
RRP shares released - 0
Dividends declared - (1,895)
------------------- ---------------------
Ending balance at September 30, 1999 (615) 234,900
=================== =====================
</TABLE>
<TABLE>
<CAPTION>
Common Stock
---------------------------------------- Paid-in
Shares Amount Capital
------------------ -------------- -------------
<S> <C> <C> <C>
Beginning balance at June 30, 2000 47,360,769 $ 4,736 70,949
Comprehensive income:
Net income - - -
Change in unrealized loss on securities,
net of tax and reclassification adjustment - - -
------------------ -------------- -------------
Total comprehensive income - - -
Exercise of stock options 12,800 1 71
ESOP shares released - - -
RRP shares released - - -
Dividends declared - - -
------------------ -------------- -------------
Ending balance at September 30, 2000 47,373,569 $ 4,737 71,020
================== ============== =============
<CAPTION>
Accum. Unearned
Other Employee
Compre- Stock
Retained hensive Ownership
Earnings Income (Loss) Plan Shares
---------------- --------------------- -------------------
<S> <C> <C> <C>
Beginning balance at June 30, 2000 177,371 (5,104) -
Comprehensive income:
Net income 6,790 - -
Change in unrealized loss on securities,
net of tax and reclassification adjustment - 1,443 -
---------------- --------------------- -------------------
Total comprehensive income 6,790 1,443 -
Exercise of stock options - - -
ESOP shares released - - -
RRP shares released - - -
Dividends declared (1,895) - -
---------------- --------------------- -------------------
Ending balance at September 30, 2000 182,266 (3,661) 0
================ ===================== ===================
<CAPTION>
Unearned
Recognition
and Total
Retention Shareholders'
Plan Shares Equity
------------------- ---------------------
<S> <C> <C>
Beginning balance at June 30, 2000 (64) 247,888
Comprehensive income:
Net income - 6,790
Change in unrealized loss on securities,
net of tax and reclassification adjustment - 1,443
------------------- ---------------------
Total comprehensive income - 8,233
Exercise of stock options - 72
ESOP shares released - 0
RRP shares released - 0
Dividends declared - (1,895)
------------------- ---------------------
Ending balance at September 30, 2000 (64) 254,298
=================== =====================
</TABLE>
See accompanying notes to unaudited consolidated financial statements
3
<PAGE>
NORTHWEST BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
9/30/00 9/30/99
------------------- -------------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net Income $ 6,790 5,993
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for loan losses 1,295 624
Net (gain) on sale of assets (69) (54)
Proceeds from sale of marketable securities, trading - 8,822
Amortization of goodwill and other intangible assets 1,572 1,104
Net depreciation, amortization and accretion 1,397 1,138
Decrease (increase) in other assets (468) (72)
Increase (decrease) in other liabilities 142 2,394
Net accretion of discount on marketable securities (364) (111)
Noncash compensation expense related to
stock benefit plans - 378
------------------- -------------------
Net cash provided by operating activities 10,295 20,216
INVESTING ACTIVITIES:
Purchase of marketable securities held-to-maturity (21,388) (8,475)
Purchase of marketable securities available-for-sale (1,592) (105,718)
Proceeds from maturities and principal reductions
of marketable securities held-to-maturity 763 11,154
Proceeds from maturities and principal reductions
of marketable securities available-for-sale 11,447 6,052
Proceeds from sales of marketable securities,
available-for-sale - 15,059
Loan originations (176,076) (188,347)
Proceeds from loan maturities and principal reductions 88,511 113,212
Proceeds from loan sales 4,426 -
Purchase of Federal Home Loan Bank Stock - (3,112)
Proceeds from sale of real estate owned 658 1,012
Net (purchase) sale of real estate owned for investment (166) -
Purchase of premises and equipment (1,575) (3,134)
Acquisitions, net of cash received - 203,319
------------------- -------------------
Net cash provided (used) by investing activities $ (94,992) 41,022
</TABLE>
4
<PAGE>
NORTHWEST BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
9/30/00 9/30/99
------------------- -------------------
<S> <C> <C>
FINANCING ACTIVITIES:
Increase (decrease) in deposits, net $ (1,446) 48,325
Proceeds from long-term borrowings 9,090 9,578
Repayments of long-term borrowings (7,717) (5,621)
Net increase (decrease) in short-term borrowings 73,600 (65,167)
Decrease in advances by borrowers for
taxes and insurance (11,319) (9,827)
Cash dividends paid (1,895) (1,895)
Proceeds from stock options exercised 72 11
------------------- -------------------
Net cash provided (used) by financing activities 60,385 (24,596)
Net increase (decrease) in cash and cash equivalents $ (24,312) 36,642
=================== ===================
Cash and cash equivalents at beginning of period $ 90,766 84,253
Net increase (decrease) in cash and cash equivalents (24,312) 36,642
------------------- -------------------
Cash and cash equivalents at end of period $ 66,454 120,895
=================== ===================
Cash paid during the period for:
Interest on deposits and borrowings (including interest
credited to deposit accounts of $24,367
and $20,555, respectively) $ 36,789 31,523
=================== ===================
Income taxes $ 1,623 563
=================== ===================
Business acquisitions:
Fair value of assets acquired $ - 68,643
Cash received (paid) - 203,319
------------------- -------------------
Liabilities assumed $ - 271,962
=================== ===================
Non-cash activities:
Loans transferred to real estate owned $ 540 419
=================== ===================
Sale of real estate owned financed by the Company $ 122 144
=================== ===================
</TABLE>
See accompanying notes to unuadited consolidated financial statements
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(1) Basis of Presentation
---------------------
The accompanying unaudited consolidated financial statements have been prepared
in accordance with instructions for Form 10-Q and, accordingly, do not include
information for footnotes necessary for a complete presentation of financial
position, results of operations and cash flows in conformity with generally
accepted accounting principles. In the opinion of management, all adjustments,
consisting of normal recurring adjustments, have been included which are
necessary for a fair presentation of financial position and results of
operations. The consolidated statements have been prepared using the accounting
policies described in the financial statements included in Northwest Bancorp,
Inc.'s Annual Report and Form 10-K for the fiscal year ended June 30, 2000.
Certain items previously reported have been reclassified to conform with the
current period's reporting format. The results of operations for the three
months ended September 30, 2000 are not necessarily indicative of the results
that may be expected for the entire year.
(2) Principles of Consolidation
---------------------------
The accompanying unaudited consolidated financial statements include the
accounts of Northwest Bancorp, Inc. and its wholly owned subsidiaries, Northwest
Savings Bank, Jamestown Savings Bank, Northwest Consumer Discount Company,
Northwest Finance Company, Northwest Financial Services, Inc., Northwest Capital
Group, Inc., Rid Fed, Inc. and Great Northwest Corporation. All significant
intercompany items have been eliminated.
(3) Accounting Developments
-----------------------
In June 1998, the Financial Accounting Standards Board ("FASB") released SFAS
133 "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133").
SFAS 133 establishes accounting and reporting standards for derivative
instruments and hedging activities. It requires that an entity recognize all
derivatives as either assets or liabilities in the statement of financial
position and measure those instruments at fair value. The accounting for changes
in the fair value of a derivative (that is, gains and losses) depends on the
intended use of the derivative and the resulting designation. This statement was
to be effective for all fiscal quarters of fiscal years beginning after June 15,
1999. This effective date was changed, however, in June 1999, when the FASB
issued SFAS 137 "Accounting for Derivative Instruments and Hedging Activities -
Deferral of the Effective Date of FASB Statement 133 - an Amendment of FASB
Statement 133", which delayed the adoption of FASB Statement 133 until the first
quarter of the Company's fiscal year 2001. Adoption of this statement had no
effect on the Company's financial position or results of operations as the
Company did not use derivative instruments in the current fiscal quarter.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Forward-Looking Statements
--------------------------
In addition to historical information, this document may contain certain
forward-looking statements, as defined in the Securities and Exchange Act of
1934, as amended, and the regulations thereunder. These forward-looking
statements contained herein are subject to certain risks and uncertainties that
could cause actual results to differ materially from those expressed or implied
in the forward-looking statements. Important factors that might cause such a
difference include, but are not limited to, economic, regulatory and other
factors as discussed herein. Readers are cautioned not to place undue reliance
on these forward-looking statements, as they reflect management's analysis only
as of the date of this report. The Company has no obligation to revise or update
these forward-looking statements to reflect events or circumstances that arise
after the date of this report.
Discussion of Financial Condition Changes from June 30, 2000 to September 30,
-----------------------------------------------------------------------------
2000
----
Assets
------
At September 30, 2000, the Company had total assets of $3.476 billion, an
increase of approximately $68.8 million, or 2.0%, from $3.407 billion at June
30, 2000. This increase was funded primarily by a $75.0 million increase in
borrowed funds and net income of $6.8 million.
Cash and cash equivalents, interest-earning deposits and marketable securities
totaled $705.5 million at September 30, 2000, a decrease of $11.0 million, or
1.5%, from $716.5 million at June 30, 2000 as the Company utilized cash to pay
the third quarter real estate taxes from the escrow accounts of a large number
of mortgage customers. Net loans receivable increased by $81.0 million, or 3.2%,
to $2.626 billion at September 30, 2000 from $2.545 billion at June 30, 2000 as
the Company aggressively sought to invest in advance the cash it anticipates to
receive from the acquisition of nine offices in November, 2000.
Liabilities
-----------
Deposits decreased by $1.4 million, or .05%, to $2.885 billion at September 30,
2000 from $2.887 billion at June 30, 2000. This slight decrease resulted
primarily from higher than normal checking account balances at June 30, as a
result of the timing of governmental direct deposits into customer accounts at
the end of the month. Borrowed funds increased by $75.0 million, or 31.3%, to
$314.9 million at September 30, 2000 from $239.9 million at June 30, 2000 as the
Company utilized short-term borrowings to fund the aforementioned asset growth.
It is anticipated that these short-term borrowings will be reduced when the
Company receives the proceeds from the office purchases mentioned above.
7
<PAGE>
Capital Resources and Liquidity
-------------------------------
Total capital at September 30, 2000 was $254.3 million, an increase of $6.4
million, or 2.6%, from $247.9 million at June 30, 2000. This increase was
primarily attributable to net income for the quarter of $6.8 million which was
partially offset by the declaration of common stock dividends of $1.9 million.
Also affecting capital was a $1.4 million decrease in the net unrealized loss on
securities available-for-sale as the market value of fixed-rate securities
partially recovered in response to a decline in short-term interest rates.
The Company and its subsidiaries are subject to various regulatory capital
requirements administered by the federal banking agencies. Failure to meet
minimum capital requirements can initiate certain mandatory - and possibly
additional discretionary - actions by the regulators that, if undertaken, could
have a direct material effect on the Company's financial statements. Under
capital adequacy guidelines and the regulatory framework for prompt corrective
action, the Company must meet specific capital guidelines that involve
quantitative measures of the Company's assets, liabilities and certain
off-balance sheet items as calculated under regulatory accounting practices. The
Company's capital amounts and classification are also subject to qualitative
judgements by the regulators about components, risk weightings and other
factors.
Quantitative measures established by regulation to ensure capital adequacy
require the Company to maintain minimum amounts and ratios (set forth in the
table below) of Total and Tier I capital (as defined in the regulations) to
risk-weighted assets (as defined), and of Tier I capital to average assets (as
defined).
8
<PAGE>
As of September 30, 2000, all regulatory capital requirements were exceeded. The
actual, required, and well capitalized levels as of September 30, 2000 and June
30, 2000 are as follows: (dollars in thousands)
<TABLE>
<CAPTION>
September 30, 2000
Minimum Capital Well Capitalized
Actual Requirements Requirements
-------------------------------------------------------------------------------------------------------------------
Amount Ratio Amount Ratio Amount Ratio
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Total Capital (to risk weighted assets):
-------------------------------------------------------------------------------------------------------------------
Northwest Bancorp, Inc. $224,910 11.83% $152,052 8.00% $190,065 10.00%
-------------------------------------------------------------------------------------------------------------------
Northwest Savings Bank $211,915 11.50% $147,408 8.00% $184,260 10.00%
-------------------------------------------------------------------------------------------------------------------
Jamestown Savings Bank $8,011 14.13% $4,537 8.00% $5,671 10.00%
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
Tier 1 Capital (to risk weighted assets):
-------------------------------------------------------------------------------------------------------------------
Northwest Bancorp, Inc. $205,059 10.79% $76,026 4.00% $114,039 6.00%
-------------------------------------------------------------------------------------------------------------------
Northwest Savings Bank $192,638 10.45% $73,704 4.00% $110,556 6.00%
-------------------------------------------------------------------------------------------------------------------
Jamestown Savings Bank $7,488 13.20% $2,268 4.00% $3,403 6.00%
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
Tier 1 Capital (leverage) (to average assets):
-------------------------------------------------------------------------------------------------------------------
Northwest Bancorp, Inc. $205,059 6.02% $102,247 3.00%* $170,411 5.00%
-------------------------------------------------------------------------------------------------------------------
Northwest Savings Bank $192,638 5.82% $99,274 3.00%* $165,457 5.00%
-------------------------------------------------------------------------------------------------------------------
Jamestown Savings Bank $7,488 7.45% $3,014 3.00%* $5,024 5.00%
-------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
June 30, 2000
<TABLE>
<CAPTION>
Minimum Capital Well Capitalized
Actual Requirements Requirements
-------------------------------------------------------------------------------------------------------------------
Amount Ratio Amount Ratio Amount Ratio
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Total Capital (to risk weighted assets):
-------------------------------------------------------------------------------------------------------------------
Northwest Bancorp, Inc. $217,398 11.73% $148,279 8.00% $185,349 10.00%
-------------------------------------------------------------------------------------------------------------------
Northwest Savings Bank $204,018 11.33% $144,043 8.00% $180,054 10.00%
-------------------------------------------------------------------------------------------------------------------
Jamestown Savings Bank $7,845 14.21% $4,416 8.00% $5,520 10.00%
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
Tier 1 Capital (to risk weighted assets):
-------------------------------------------------------------------------------------------------------------------
Northwest Bancorp, Inc. $198,417 10.71% $74,139 4.00% $111,209 6.00%
-------------------------------------------------------------------------------------------------------------------
Northwest Savings Bank $185,509 10.30% $72,022 4.00% $108,032 6.00%
-------------------------------------------------------------------------------------------------------------------
Jamestown Savings Bank $7,367 13.35% $2,208 4.00% $3,312 6.00%
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
Tier 1 Capital (leverage) (to average assets):
-------------------------------------------------------------------------------------------------------------------
Northwest Bancorp, Inc. $198,417 5.93% $100,455 3.00%* $167,425 5.00%
-------------------------------------------------------------------------------------------------------------------
Northwest Savings Bank $185,509 5.71% $97,403 3.00%* $162,338 5.00%
-------------------------------------------------------------------------------------------------------------------
Jamestown Savings Bank $7,367 7.57% $2,920 3.00%* $4,867 5.00%
-------------------------------------------------------------------------------------------------------------------
</TABLE>
* The FDIC has indicated that the most highly rated institutions which meet
certain criteria will be required to maintain a ratio of 3%, and all other
institutions will be required to maintain an additional capital cushion of 100
to 200 basis points. As of September 30, 2000, the Company had not been advised
of any additional requirements in this regard.
The Company is required to maintain a sufficient level of liquid assets, as
determined by management and defined and reviewed for adequacy by the FDIC and
the Department of Banking of the Commonwealth of Pennsylvania during their
regular examinations. The Company's internal liquidity requirement is based upon
liquid assets as a percentage of deposits and borrowings ("liquidity ratio").
The Company has always maintained a level of liquid assets in excess of
regulatory and internal requirements, and the liquidity ratio at September 30,
2000 was 22.2%. The Company adjusts its liquidity levels in order to meet
funding needs for deposit outflows, payment of real estate taxes and insurance
on mortgage loan escrow accounts, repayment of borrowings, when applicable, and
loan commitments.
10
<PAGE>
Nonperforming Assets
--------------------
The following table sets forth information with respect to the Company's
nonperforming assets. Nonaccrual loans are those loans on which the accrual of
interest has ceased. Loans are automatically placed on nonaccrual when they are
more than 90 days contractually delinquent but may also be placed on nonaccrual
status even if not 90 days or more delinquent but other conditions exist. Other
nonperforming assets represent property acquired by the Company through
foreclosure or repossession. Foreclosed property is carried at the lower of its
fair value or the principal balance of the related loan. Nonperforming assets
increased by $1.7 million, or 13.7%, to $14.1 million at September 30, 2000 from
$12.4 million at June 30, 2000. Management believes that these low levels of
nonperforming assets are attributable to stringent credit policies, sustained
collection procedures and generally strong economic conditions.
<TABLE>
<CAPTION>
(Dollars in Thousands)
--------------------------------------------------------------------------------------------------------------------
Loans accounted for on a nonaccrual basis: September 30, 2000 June 30, 2000
<S> <C> <C>
--------------------------------------------------------------------------------------------------------------------
One-to-four family residential loans $7,055 $5,753
--------------------------------------------------------------------------------------------------------------------
Multifamily and commercial real estate loans 2,343 1,923
--------------------------------------------------------------------------------------------------------------------
Consumer loans 2,555 2,459
--------------------------------------------------------------------------------------------------------------------
Commercial business loans 153 125
--------------------------------------------------------------------------------------------------------------------
Total $12,106 $10,260
--------------------------------------------------------------------------------------------------------------------
Total nonperforming loans as a percentage of net loans
receivable .46% .40%
--------------------------------------------------------------------------------------------------------------------
Total real estate acquired through foreclosure and other
real estate owned $2,038 $2,144
--------------------------------------------------------------------------------------------------------------------
Total nonperforming assets $14,144 $12,404
--------------------------------------------------------------------------------------------------------------------
Total nonperforming assets as a percentage of total assets .41% .36%
--------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
Comparison of Operating Results for the Three Months Ended September 30, 2000
-----------------------------------------------------------------------------
and 1999
--------
General
-------
Net income for the three months ended September 30, 2000 was $6.8 million, or
$.14 per share, an increase of $797,000, or 13.3%, from $6.0 million, or $.13
per share, for the same quarter last year. This increase in net income resulted
primarily from a $2.6 million increase in net interest income and an $840,000
increase in noninterest income which were partially offset by a $2.0 million
increase in noninterest expense.
Net Interest Income
-------------------
For the three months ended September 30, 2000, total interest income increased
by $7.4 million, or 12.9%, on a taxable equivalent basis, to $64.8 million
compared to $57.4 million for the three months ended September 30, 1999. This
increase resulted primarily from a $277.7 million, or 9.3%, increase in average
interest earning assets to $3.267 billion for the three months ended September
30, 2000 from $2.989 billion for the three months ended September 30, 1999. Also
contributing to this increase in total interest income was an increase in the
yield on average interest earning assets to 7.94% for the three months ended
September 30, 2000 from 7.67% for the same period last year. The substantial
growth in average interest earning assets was primarily due to the investment of
funds received from the acquisition of offices over the last twelve months with
average deposits of approximately $260.0 million combined with continued strong
internal growth in the Company's existing franchise. The increase in the overall
yield on interest earning assets from quarter to quarter resulted primarily from
the aforementioned growth occurring during a period of increased market interest
rates as well as the repricing of variable rate assets at these higher rates.
Interest income on loans receivable increased by $6.4 million, or 13.7%, to
$53.0 million for the quarter ended September 30, 2000 compared to $46.6 million
during the same quarter last year. This increase resulted primarily from a
$266.9 million, or 11.5%, increase in average loans outstanding to $2.593
billion for the quarter ended September 30, 2000 from $2.326 billion for the
same quarter last year. Loan balances increased because of strong loan demand
throughout the Company's market area as well as the purchase of approximately
$47.0 million of loans in September, 1999 as part of the acquisition of eight
retail offices. Also contributing to the increase in interest income on loans
was an increase in the yield on average loans to 8.18% for the quarter ended
September 30, 2000 from 8.00% for the comparable period last year. This increase
in average yield resulted primarily from the growth in the Company's loan
portfolio over the past year at interest rate levels higher than the existing
average portfolio rate.
Interest income on mortgage-backed securities increased by $1.2 million, or
19.7%, to $7.3 million for the three months ended September 30, 2000 from $6.1
million for the same period last year. This increase resulted primarily from an
increase in the average yield to 6.82% for the three
12
<PAGE>
months ended September 30, 2000 from 6.18% for the three months ended September
30, 1999 combined with an increase in the average balance of mortgage-backed
securities by $33.3 million, or 8.5%, to $425.6 million for the current quarter
ended September 30, 2000 from $392.3 million for the same quarter last year. The
average yield on mortgage-backed securities, most of which are variable rate,
increased in response to an increase in market interest rates for short-term
securities. The average balance increased primarily as a result of a decision by
the Company to restructure its portfolio mix by purchasing variable rate
mortgage-backed securities with the funds received from the maturity of
investment securities.
Interest income on investment securities decreased by $106,000, or 2.5%, on a
taxable equivalent basis, to $4.1 million for the three months ended September
30, 2000 from $4.2 million for the three months ended September 30, 1999. This
decrease resulted primarily from an $18.9 million, or 8.1%, decrease in the
average balance of investment securities to $213.8 million for the three months
ended September 30, 2000 from $232.7 million for the three months ended
September 30, 1999. Partially offsetting this decrease was an increase in the
average taxable equivalent yield to 7.59% for the quarter ended September 30,
2000 from 7.15% for the same quarter last year. The decrease in average balance
was primarily due to the change in the overall investment portfolio mix as
mentioned above. The increase in average yield resulted primarily from the
maturity or sale of approximately $45.0 million of U.S. Treasury securities over
the last twelve months, the proceeds of which were invested in higher yielding
securities in an increasing rate environment.
Interest income on interest-earning deposits decreased by $135,000, or 54.7%, to
$112,000 for the three months ended September 30, 2000 from $247,000 for the
three months ended September 30, 1999. This decrease resulted primarily from a
$5.5 million, or 29.6%, decrease in the average balance of interest-earning
deposits to $13.1 million for the three months ended September 30, 2000 from
$18.6 million for the three months ended September 30, 1999 combined with a
decrease in the average yield to 3.42% from 5.30%. The decrease in the average
balance was primarily due to improved efficiencies by the Company in managing
its cash in other institutions. The significant volatility in the average yield
is largely influenced by the timing as to when the Company begins to earn
interest on its daily deposits and the float experienced on checks issued.
Interest expense increased by $4.7 million, or 14.8%, to $36.4 million for the
three months ended September 30, 2000 from $31.7 million for the three months
ended September 30, 1999. This increase resulted primarily from an increase in
the average cost of interest-bearing liabilities to 4.84% for the quarter ended
September 30, 2000 from 4.46% for the quarter ended September 30, 1999. In
addition, the average balance of interest-bearing liabilities increased by
$170.9 million, or 6.0%, to $3.011 billion for the quarter ended September 30,
2000 from $2.840 billion for the comparable period last year. The increase in
average interest-bearing liabilities resulted from an increase of $295.9
million, or 12.1%, in the average balance of deposits, attributed primarily to
the acquisition and opening of new offices along with internal growth of
existing offices. Partially offsetting this increase in deposits was a decrease
of $125.0 million, or 32.6%, in average borrowed funds to $259.0 million for the
quarter ended September 30, 2000 from $384.0 million for the quarter ended
September 30, 1999. This change in mix between deposits
13
<PAGE>
and borrowed funds resulted from the Company utilizing a portion of its deposit
growth to repay borrowed funds. The overall increase in the average cost of
funds was a result of an increase of approximately 150 basis points in
short-term interest rates over the last twelve months which directly effected
the rates the Company pays on interest sensitive liabilities such as
certificates of deposit and overnight borrowings. Partially mitigating the
increase in short-term interest rates, was a decrease in the average interest
rate paid on checking accounts to 1.26% for the quarter ended September 30, 2000
from 1.52% for the quarter ended September 30, 1999. The Company lowered its
checking account rates in response to competitive forces in its market.
Net interest income increased by $2.7 million, or 10.5%, on a taxable equivalent
basis, to $28.4 million for the three months ended September 30, 2000 compared
to $25.7 million for the three months ended September 30, 1999. As previously
summarized, this increase in net interest income was attributable to the
significant increase in net interest earning assets as the Company's interest
rate spread decreased in response to higher short-term interest rates and an
inverted yield curve.
Provision for Loan Losses
-------------------------
The provision for loan losses increased by $671,000, or 107.5%, to $1.3 million
for the quarter ended September 30, 2000 from $624,000 for the quarter ended
September 30,1999. Provisions for losses on the loan portfolio are charged to
earnings in an amount sufficient, in management's judgement, to cover probable
losses based upon the risk in the Company's loan portfolio, current economic
conditions and historical trends. Management believes that credit quality
remains strong.
Noninterest Income
------------------
Noninterest income increased by $840,000, or 35.6%, to $3.2 million for the
three months ended September 30, 2000 from $2.4 million for the three months
ended September 30, 1999. Of this increase, approximately $562,000 was
attributable to increases in fee income relating to the Company's growth in
loans and deposits as well as an increase in overdraft charges. In addition,
debit card transaction income and surcharges for foreign ATM use contributed an
increase of approximately $168,000 and the trust and brokerage lines of business
added new income of approximately $105,000.
Noninterest Expense
-------------------
Noninterest expense increased by $2.0 million, or 11.5%, to $19.4 million for
the three months ended September 30, 2000 from $17.4 million for the three
months ended September 30, 1999. This increase resulted primarily from a $1.2
million, or 12.6%, increase in compensation expense
14
<PAGE>
to $10.7 million for the quarter ended September 30, 2000 from $9.5 million for
the same period last year. This increase in compensation expense was anticipated
as a result of the growth of the Company's network of community banking and
consumer finance offices, along with the expansion of its investment management,
trust and brokerage lines of business. Occupancy costs and bank service charges
combined also increased $526,000, or 21.9%, as a result of the aforementioned
increases in the retail office network. In addition, the expense for the
amortization of intangibles increased by $468,000, or 42.4%, to $1.6 million for
the current quarter compared to $1.1 million the prior year. This was a result
of the additional intangible recorded for the acquisition of eight retail
offices in September of 1999. Partially offsetting these increases in expenses
was a decrease in the FDIC insurance premium of $149,000, or 50.5%, to $146,000
for the current quarter as a result of the last of a series of scheduled
decreases in the FDIC insurance rate. The premium was reduced on January 1, 2000
to $.21 for every $1,000 in deposits from $.58 a year ago.
Income Taxes
------------
The provision for income taxes for the three months ended September 30, 2000
increased by $56,000, or 1.6%, to $3.5 million compared to $3.4 million for the
same period last year. This increase was primarily due to an increase in net
income before tax of $853,000, or 9.0%, to $10.3 million for the quarter ended
September 30, 2000 from $9.5 million for the quarter ended September 30, 1999.
Partially offsetting this increase was a decrease in the effective tax rate to
34.2% for the current fiscal quarter from 36.7% for the same period last year.
The lower effective tax rate is a result of the timing as to when low income
housing federal tax credits are recognized by the Company for its investment in
low income housing projects.
15
<PAGE>
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
monthly averages.
<TABLE>
<CAPTION>
Three Months Ended September 30,
2000 1999
-----------------------------------------------------------------------------------------------------------------------
AVERAGE. INTEREST AVG AVERAGE INTEREST AVG.
BALANCE YIELD/ BALANCE YIELD
COST /COST
-----------------------------------------------------------------------------------------------------------------------
ASSETS:
------
<S> <C> <C> <C> <C> <C> <C>
Interest earning assets:
Loans receivable (a) (b) $2,593,270 $53,009 8.18% $2,326,396 $46,555 8.00%
Mortgage-backed securities (c) $425,643 $7,260 6.82% $392,328 $6,062 6.18%
Investment securities (c) (d) (e) $213,773 $4,054 7.59% $232,653 $4,160 7.15%
FHLB stock $21,269 $387 7.28% $19,318 $331 6.85%
Other interest earning deposits $13,107 $112 3.42% $18,631 $247 5.30%
------- ---- ----- ------- ---- -----
Total interest earning assets $3,267,062 $64,822 7.94% $2,989,326 $57,355 7.67%
Noninterest earning assets (f) $141,018 $183,632
-------- --------
TOTAL ASSETS $3,408,080 $3,172,958
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
-------------------------------------
Interest bearing liabilities:
Savings accounts $424,426 $3,418 3.22% $415,530 $3,411 3.28%
Now accounts $334,862 $1,056 1.26% $350,647 $1,336 1.52%
Money market demand accounts $178,700 $1,630 3.65% $168,593 $1,553 3.68%
Certificate accounts $1,813,701 $26,326 5.81% $1,520,973 $20,162 5.30%
Borrowed funds (g) $258,960 $4,005 6.19% $383,986 $5,188 5.40%
-------- ------ ----- -------- ------ -----
Total interest bearing liabilities $3,010,649 $36,435 4.84% $2,839,729 $31,650 4.46%
Noninterest bearing liabilities $146,349 $98,602
-------- -------
Total liabilities $3,156,998 $2,938,331
Shareholders' equity $251,082 $234,627
-------- --------
TOTAL LIABILITIES AND EQUITY $3,408,080 $3,172,958
========== ==========
Net interest income/Interest rate spread $28,387 3.10% $25,705 3.21%
Net interest earning assets/Net $256,413 3.48% $149,597 3.44%
interest margin
Ratio of interest earning assets to
interest bearing liabilities 1.09 X 1.05 X
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
(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.
(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 is presented on a taxable
equivalent basis.
(e) Average balances include FNMA and FHLMC 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.
16
<PAGE>
Rate/Volume Analysis
(Dollars in Thousands)
The following tables represent the extent to which changes in interest rates and
changes in the volume of interest-earning assets and interest-bearing
liabilities have affected the Company's interest income and interest expense
during the periods indicated. Information is provided in each category with
respect to (i) changes attributable to changes in volume (changes in volume
multiplied by prior rate), (ii) changes attributable to changes in rate (changes
in rate multiplied by prior volume), (iii) changes in rate-volume (changes in
rate multiplied by changes in volume), and (iv) the net change.
Three months ended September 30, 2000 and 1999
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
Rate/
Rate Volume Volume Net Change
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest earning assets:
Loans receivable $998 $5,341 $115 $6,454
Mortgage-backed securities $630 $515 $53 $1,198
Investment securities $252 ($338) ($20) ($106)
FHLB stock $21 $33 $2 $56
Other interest earning deposits ($88) ($73) $26 ($135)
----- ----- --- ------
Total interest earning assets $1,813 $5,478 $176 $7,467
Interest bearing liabilities:
Savings accounts ($65) $73 ($1) $7
Now accounts ($230) ($60) $10 ($280)
Money market demand accounts ($15) $93 ($1) $77
Certificate accounts $1,915 $3,880 $369 $6,164
Borrowed funds $750 ($1,689) ($244) ($1,183)
---- -------- ------ --------
Total interest bearing liabilities $2,355 $2,297 $133 $4,785
Net change in net interest income ($542) $3,181 $43 $2,682
====== ====== === ======
--------------------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
ITEM 3. MARKET RISK
As a bank holding company, the Company's primary market risk is interest rate
risk. Interest rate risk is the sensitivity of net interest income to variations
in interest rates over a specified time period. This sensitivity results from
differences in the time periods in which interest rate sensitive assets and
liabilities mature or reprice. The Company attempts to control interest rate
risk by matching, within acceptable limits, the repricing periods of its assets
and liabilities. Because the Company's interest sensitive liabilities typically
have repricing periods or maturities of short duration, the Company has
attempted to shorten the maturities of its assets by emphasizing the origination
of short-term, fixed-rate consumer loans, one-to-four family residential
mortgage loans with terms of fifteen years or less and adjustable rate mortgage
loans, consumer loans and commercial loans. In addition, the Company has
purchased shorter term or adjustable-rate investment securities and
adjustable-rate mortgage-backed securities.
The Company has a Risk Management Committee comprised of certain members of the
Board of Directors which meets quarterly and reviews interest rate risks and
trends, the Company's interest sensitivity position, the Company's liquidity
position and the market risk inherent in the Company's investment portfolio.
In an effort to assess market risk, the Company utilizes a simulation model to
determine the effect of immediate incremental increases and decreases in
interest rates on net interest income and the market value of the Company's
equity. Certain assumptions are made regarding loan prepayments and decay rates
of passbook and NOW accounts. Because it is difficult to accurately project the
market reaction of depositors and borrowers, the effects of actual changes in
interest on these assumptions may differ from simulated results. The Company has
established the following guidelines for assessing interest rate risk:
Net interest margin simulation. Given a parallel shift of 2% in interest rates,
the estimated net interest margin may not change by more than 30% within a
one-year period.
Market value of equity simulation. The market value of the Company's equity is
the present value of the Company's assets and liabilities. Given a parallel
shift of 2% in interest rates, the market value of equity may not decrease by
more than 50% of total shareholders' equity.
18
<PAGE>
The following table illustrates the simulated impact of a 1% or 2% upward or
downward movement in interest rates on net income, return on average equity,
earnings per share and market value of equity. This analysis was prepared
assuming that interest-earning asset levels at September 30, 2000 remain
constant. The impact of the rate movements was computed by simulating the effect
of an immediate and sustained shift in interest rates over a twelve month period
from the September 30, 2000 levels.
<TABLE>
<CAPTION>
Increase Decrease
------------------- -----------------
<S> <C> <C> <C> <C>
Parallel shift in interest rates over the next 12 months 1.0% 2.0% 1.0% 2.0%
------- -------- ------- -------
Projected percentage increase/(decrease) in net income (2.3%) (8.7%) 0.9% (4.2%)
Projected increase/(decrease) in return on average equity (0.3%) (1.0%) 0.1% (0.5%)
Projected increase/(decrease) in earnings per share ($.01) ($.05) $.01 ($.03)
Projected percentage increase/(decrease) in market value of equity (21.9%) (37.5%) 5.7% 11.2%
</TABLE>
The figures included in the table above represent projections which were
computed based upon certain assumptions including prepayment rates and decay
rates which cannot be accurately predicted. There are no assurances that these
assumptions and the resultant impact on the Company's financial ratios will
approximate the figures presented above.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-------------------------
The Company and its subsidiaries are subject to a number of asserted and
unasserted claims encountered in the normal course of business. Management
believes that the aggregate liability, if any, that may result from such
potential litigation will not have a material adverse effect on the Company's
financial statements.
Item 2. Changes in Securities
-----------------------------
Not applicable.
Item 3. Defaults Upon Senior Securities
---------------------------------------
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
-----------------------------------------------------------
Not applicable
19
<PAGE>
Item 5. Other Information
-------------------------
Business Combinations
---------------------
On April 18, 2000 the Company announced its plan to purchase nine retail office
facilities in Potter and Tioga Counties in northcentral Pennsylvania from
another financial institution. The acquisition includes approximately $127
million in deposits and $53 million in consumer and business loans, along with
the related fixed assets. This transaction is expected to be completed in
November, 2000 and will be accounted for using the purchase method of
accounting.
Item 6. Exhibits and Reports on Form 8-K
----------------------------------------
(a) Exhibit No. 11 Statement re: computation of per share earnings
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
September 30, 2000 September 30, 1999
------------------ ------------------
<S> <C> <C>
Net income applicable to common stock $ 6,790,015 $ 5,992,595
Weighted-average common shares outstanding 47,369,039 47,248,627
Basic earnings per share $ 0.14 $ 0.13
============== ==============
Weighted-average common shares outstanding 47,369,039 47,248,627
Common stock equivalents due to effect of stock options 261,577 377,251
-------------- --------------
Total weighted-average common shares and equivalents 47,630,616 47,625,878
Diluted earnings per share $ 0.14 $ 0.13
============== ==============
</TABLE>
Exhibit No. 27 Financial Data Schedule attached
(b) No Form 8-K reports were filed during the quarter
20
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed by the undersigned thereunto
duly authorized.
NORTHWEST BANCORP, INC.
Date: November 13, 2000 By: /s/ William J. Wagner
--------------------- ------------------------------------
William J. Wagner
Chief Financial Officer and Chief
Operating Officer
(Chief Financial and Accounting Officer
and Duly Authorized Representative)
21
