Northwest Bank parent to pay fine, restitution
Northwest Bancshares Inc. agreed to a regulatory order that it pay up to $700,000 in fines and restitution "in the near future," said a securities filing on Monday.
The Warren-based bank said it would pay $325,000 in civil penalties to the Federal Deposit Insurance Corp., plus as much as $375,000 to depositors to whom the bank allegedly underpaid interest.
The FDIC also ordered Northwest to formalize and improve regulatory compliance programs. Bank officials could not be reached for comment.
In November, Northwest's agreement to acquire NexTier Bank, Butler, was withdrawn because regulators, citing compliance issues, would not approve the transaction.
Separately, Northwest yesterday reported quarterly net income of $15 million, or 15 cents a share, down from $16.1 million, or 15 cents a share, a year earlier.
Northwest Bank operates 169 branches in four states, including 29 branches in Western Pennsylvania.