Northwest Bancorp sells $383 million in mortgages
By MortgageDaily.com staff
1/19/2006

A $383 million portfolio of one-to-four-family first mortgages is trading hands.

Northwest Bancorp Inc. said Wednesday it expects a $25,000 after-tax gain from the secondary sale, which is anticipated to be consummated this quarter.

The proceeds from the mortgages, which have an average yield of 5.75% and remaining life of approximately 27 years, will be reinvested in "other types of assets that will most likely have slightly lower average yields but much shorter average lives," according to the announcement.

"Because two year treasury rates and ten year treasury rates are essentially the same, this restructuring allows our company to shorten the average life of our assets at a time when there is little immediate economic benefit to be derived from holding long-term fixed-rate assets," explained William J. Wagner, president and CEO of the Warren, Penn.-based company, in the statement. "We plan to use the additional cash flow generated by the assets we are purchasing to fund the continued growth of our commercial and consumer loan portfolios."

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