Northwest Bancorp Rejects Funds From Treasury

WARREN, Pa. (AP) — Northwest Bancorp Inc. said Tuesday that it will not participate in the Treasury Department's capital purchase program, based on its decision that the government funding is not necessary.

Unlike many of its peers, the regional bank has remained profitable during the credit crisis and has maintained its dividend.

Northwest Bancorp is the parent company of Northwest Savings Bank, which operates 168 branches in Pennsylvania, New York, Maryland, Ohio and Florida.

The government began buying up preferred shares in banks last fall as part of its $700 billion financial rescue program designed to bolster banks' balance sheets and spur more normal lending amid a debilitating credit freeze.

A handful of regional banks have returned their funds, and many others, including JPMorgan Chase & Co. and Goldman Sachs Group Inc., have expressed a desire to do so as soon as possible.

Banks that have received funds have chafed under greater government scrutiny and restrictions on executive pay.

Shares of the Warren, Pa.-based bank rose 5 cents to close at $17.26 Tuesday.