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Northwest Bancshares Inc. prepays FHLB long-term advances

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Northwest Bancshares Inc. prepays FHLB long-term advances

Warren, Pa.-basedNorthwest Bancshares Inc.repaid $675.0 million of its $715.0 million long-term Federal Home Loan Bank advances,with a weighted-average cost of 3.56%, with overnight borrowings at 0.54%.The repayment was completed May 6, according to a Form 8-K filed May 10.

The transactionentailed a $37.0 million prepayment penalty, which, the company said, will be expensedin the quarter ending June 30. But Northwest Bancshares expects $23.0 million inannual interest expense savings from repaying part of its FHLB borrowings.

The companypreviously announcedits plan to repay the $715.0 million with lower-cost deposits, in connection withthe acquisition of Buffalo,N.Y.-based First Niagara FinancialGroup Inc.'s 18 branches.