WARREN, Pa. (AP) - Community bank company Northwest Bancshares Inc. on Monday said its third-quarter profit rose 8 percent, as it cut the amount it set aside to cover bad loans even while the total loan amount written off rose.
The parent of Northwest Savings Bank said its net income rose to $16.7 million, or 17 cents per share, in the three months ended Sept. 30. That compares with $15.5 million, or 14 cents per share, in the year-ago quarter.
Total revenue rose 1 percent to $81.5 million, from $80.5 million a year ago.
There were 11 percent fewer shares outstanding in the most recent quarter, reflecting the bank's buy-back program, which had the effect of boosting earnings per share.
Analysts, on average, were expecting profit of 17 cents per share on revenue of 83.2 million, according to data provided by FactSet.
Net interest income, or money earned on traditional banking activities like deposits and loans, edged up to $67 million, from $66.7 million last year. Non-interest income, or earnings from fees and charges, rose to $14.5 million, from $13.8 million a year ago.
The bank set aside $8.1 million to cover loans deemed uncollectible, down 18 percent from $9.9 million a year ago. It wrote off a total of $10.2 million in unpaid lending for the quarter, up from $8 million last year.
Northwest said total loans past due by 90 days or more, those most at risk of default, rose to $161.4 million, up 8 percent from last year but down 3 percent since the June quarter.
In morning trading, Northwest shares slipped 4 cents to $12.44. The stock has traded between $10.24 and $13.36 in the past year.