10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

xQuarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2015

or

oTransition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                      

Commission File Number 001-34582

NORTHWEST BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Maryland	27-0950358
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
100 Liberty Street, Warren, Pennsylvania	16365
(Address of principal executive offices)	(Zip Code)

(814) 726-2140

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  x  No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large Accelerated Filer x Accelerated Filer o Non-Accelerated Filer o Smaller reporting company o

Indicate by check mark whether the registrant is a Shell Company (as defined in Rule 12b-2 of the Exchange Act). Yes  o  No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Common Stock ($0.01 par value) 94,613,110 shares outstanding as of July 31, 2015

NORTHWEST BANCSHARES, INC.

INDEX

		PAGE
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Financial Condition as of June 30, 2015 and December 31, 2014 (Unaudited)	1
	Consolidated Statements of Income for the quarter and six months ended June 30, 2015 and 2014 (Unaudited)	2
	Consolidated Statements of Comprehensive Income for the quarter and six months ended June 30, 2015 and 2014 (Unaudited)	3
	Consolidated Statements of Changes in Shareholders’ Equity for the quarter ended June 30, 2015 and 2014 (Unaudited)	4
	Consolidated Statements of Changes in Shareholders’ Equity for the six months ended June 30, 2015 and 2014 (Unaudited)	5
	Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014 (Unaudited)	6
	Notes to Consolidated Financial Statements (Unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	49
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	66
Item 4.	Controls and Procedures	68
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	68
Item 1A.	Risk Factors	68
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	68
Item 3.	Defaults Upon Senior Securities	69
Item 4.	Mine Safety Disclosures	69
Item 5.	Other information	69
Item 6.	Exhibits	69
	Signature	70
	Certifications

ITEM 1. FINANCIAL STATEMENTS

NORTHWEST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(in thousands, except share data)

	June 30,			December 31,
	2015			2014
Assets
Cash and due from banks	$	84,000		87,401
Interest-earning deposits in other financial institutions	208,311			152,671
Federal funds sold and other short-term investments	637			634
Marketable securities available-for-sale (amortized cost of $854,147 and $906,702)	861,157			912,371
Marketable securities held-to-maturity (fair value of $62,957 and $106,292)	61,464			103,695
Total cash and investments	1,215,569			1,256,772
Personal Banking:
Residential mortgage loans	2,597,170			2,521,456
Home equity loans	1,055,829			1,066,131
Other consumer loans	252,391			242,744
Total Personal Banking	3,905,390			3,830,331
Business Banking:
Commercial real estate loans	1,859,743			1,801,184
Commercial loans	359,524			358,376
Total Business Banking	2,219,267			2,159,560
Total loans	6,124,657			5,989,891
Allowance for loan losses	(59,057		)	(67,518	)
Total loans, net	6,065,600			5,922,373
Federal Home Loan Bank stock, at cost	38,066			33,293
Accrued interest receivable	18,682			18,623
Real estate owned, net	13,864			16,759
Premises and equipment, net	142,302			143,909
Bank owned life insurance	146,283			144,362
Goodwill	175,498			175,323
Other intangible assets	2,759			3,033
Other assets	45,887			60,586
Total assets	$	7,864,510		7,775,033
Liabilities and Shareholders’ equity
Liabilities:
Noninterest-bearing checking deposits	$	962,347		891,248
Interest-bearing checking deposits	928,417			874,623
Money market deposit accounts	1,143,199			1,179,070
Savings deposits	1,262,991			1,209,287
Time deposits	1,397,528			1,478,314
Total deposits	5,694,482			5,632,542
Borrowed funds	899,056			888,109
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities	103,094			103,094
Advances by borrowers for taxes and insurance	41,763			30,507
Accrued interest payable	1,302			936
Other liabilities	56,463			57,198
Total liabilities	6,796,160			6,712,386
Shareholders’ equity:
Preferred stock, $0.01 par value: 50,000,000 authorized, no shares issued	—			—
Common stock, $0.01 par value: 500,000,000 shares authorized, 94,740,749 and 94,721,453 shares issued, respectively	947			947
Paid-in capital	624,321			626,134
Retained earnings	487,150			481,577
Unallocated common stock of employee stock ownership plan	(21,485		)	(21,641	)
Accumulated other comprehensive loss	(22,583		)	(24,370	)
Total shareholders’ equity	1,068,350			1,062,647
Total liabilities and shareholders’ equity	$	7,864,510		7,775,033

See accompanying notes to unaudited consolidated financial statements

1

NORTHWEST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except per share data)

	Quarter ended					Six months ended
	June 30,					June 30,
	2015			2014		2015		2014
Interest income:
Loans receivable	$	70,985		70,726		141,696		140,048
Mortgage-backed securities	2,058			2,666		4,292		5,459
Taxable investment securities	1,604			1,711		4,052		3,067
Tax-free investment securities	1,143			1,598		2,491		3,253
Interest-earning deposits	180			286		319		486
Total interest income	75,970			76,987		152,850		152,313
Interest expense:
Deposits	5,691			6,421		11,457		12,911
Borrowed funds	8,101			7,793		16,234		15,507
Total interest expense	13,792			14,214		27,691		28,418
Net interest income	62,178			62,773		125,159		123,895
Provision for loan losses	1,050			8,285		1,950		15,770
Net interest income after provision for loan losses	61,128			54,488		123,209		108,125
Noninterest income:
Gain on sale of investments	566			349		661		3,697
Service charges and fees	9,228			9,042		17,887		17,450
Trust and other financial services income	3,094			3,055		5,870		6,102
Insurance commission income	2,210			2,237		4,638		4,801
Loss on real estate owned, net	(541		)	(562	)	(1,587	)	(697	)
Income from bank owned life insurance	1,008			1,050		1,921		2,051
Mortgage banking income	218			265		458		514
Other operating income	742			991		1,302		1,890
Total noninterest income	16,525			16,427		31,150		35,808
Noninterest expense:
Compensation and employee benefits	28,920			28,543		56,815		56,515
Premises and occupancy costs	5,899			5,740		12,166		12,297
Office operations	3,508			3,868		7,188		7,625
Processing expenses	7,392			6,639		14,597		13,228
Marketing expenses	3,190			2,931		5,166		4,568
Federal deposit insurance premiums	1,286			1,338		2,633		2,635
Professional services	1,652			1,775		3,444		3,837
Amortization of other intangible assets	269			331		537		662
Real estate owned expense	514			459		1,206		1,098
Acquisition expense	467			—		814		—
Other expenses	2,038			2,182		4,280		4,504
Total noninterest expense	55,135			53,806		108,846		106,969
Income before income taxes	22,518			17,109		45,513		36,964
Federal and state income taxes	7,213			4,435		14,038		9,679
Net income	$	15,305		12,674		31,475		27,285
Basic earnings per share	$	0.17		0.14		0.34		0.30
Diluted earnings per share	$	0.17		0.14		0.34		0.30

See accompanying notes to unaudited consolidated financial statements

2

NORTHWEST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(in thousands)

	Quarter ended					Six months ended
	June 30,					June 30,
	2015			2014		2015		2014
Net Income	$	15,305		12,674		31,475		27,285
Other comprehensive income net of tax:
Net unrealized holding gains/ (losses) on marketable securities:
Unrealized holding gains/ (losses) net of tax of $1,139, $(1,997), $(746) and $(5,576), respectively	(1,788		)	3,123		1,164		8,719
Reclassification adjustment for gains included in net income, net of tax of $179, $130, $222 and $1,348 respectively	(279		)	(204	)	(347	)	(2,108	)
Net unrealized holding gains on marketable securities	(2,067		)	2,919		817		6,611
Change in fair value of interest rate swaps, net of tax of $(263), $(53), $(287) and $(188), respectively	488			98		532		349
Defined benefit plan:
Reclassification adjustment for prior period service costs included in net income, net of tax of $(140), $74, $(280) and $149, respectively	219			(138	)	438		(276	)
Other comprehensive income/ (loss)	(1,360		)	2,879		1,787		6,684
Total comprehensive income	$	13,945		15,553		33,262		33,969

See accompanying notes to unaudited consolidated financial statements

3

NORTHWEST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(dollars in thousands, expect share data)

							Accumulated
							Other		Unallocated		Total
	Common Stock			Paid-in	Retained		Comprehensive		common stock		Shareholders’
Quarter ended June 30, 2014	Shares	Amount		Capital	Earnings		Income/ (loss)		of ESOP		Equity
Beginning balance at March 31, 2014	94,464,430	$	945	622,758	562,933		(8,095	)	(22,632	)	1,155,909
Comprehensive income:
Net income	—	—		—	12,674		—		—		12,674
Other comprehensive income, net of tax of $(1,846)	—	—		—	—		2,879		—		2,879
Total comprehensive income	—	—		—	12,674		2,879		—		15,553
Exercise of stock options	212,635	2		2,167	—		—		—		2,169
Stock compensation expense	272,630	2		1,288	—		—		432		1,722
Dividends paid ($1.13 per share)	—	—		—	(104,569	)	—		—		(104,569	)
Ending balance at June 30, 2014	94,949,695	$	949	626,213	471,038		(5,216	)	(22,200	)	1,070,784

										Accumulated
										Other		Unallocated		Total
	Common Stock					Paid-in		Retained		Comprehensive		common stock		Shareholders’
Quarter ended June 30, 2015	Shares		Amount			Capital		Earnings		Income/ (loss)		of ESOP		Equity
Beginning balance at March 31, 2015	94,553,350		$	946		624,584		484,774		(21,223	)	(21,565	)	1,067,516
Comprehensive income:
Net income	—		—			—		15,305		—		—		15,305
Other comprehensive loss, net of tax of $915	—		—			—		—		(1,360	)	—		(1,360	)
Total comprehensive income/ (loss)	—		—			—		15,305		(1,360	)	—		13,945
Exercise of stock options	60,849		—			632		—		—		—		632
Stock-based compensation expense, including tax benefit of $6	306,350		3			1,316		—		—		80		1,399
Share repurchases	(179,800	)	(2		)	(2,211	)	—		—		—		(2,213	)
Dividends paid ($0.14 per share)	—		—			—		(12,929	)	—		—		(12,929	)
Ending balance at June 30, 2015	94,740,749		$	947		624,321		487,150		(22,583	)	(21,485	)	1,068,350

See accompanying notes to unaudited consolidated financial statements

4

NORTHWEST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(dollars in thousands, expect share data)

							Accumulated
							Other		Unallocated		Total
	Common Stock			Paid-in	Retained		Comprehensive		common stock		Shareholders’
Six months ended June 30, 2014	Shares	Amount		Capital	Earnings		Income/ (loss)		of ESOP		Equity
Beginning balance at December 31, 2013	94,243,713	$	943	619,678	569,547		(11,900	)	(23,083	)	1,155,185
Comprehensive income:
Net income	—	—		—	27,285		—		—		27,285
Other comprehensive income, net of tax of $(4,267)	—	—		—	—		6,684		—		6,684
Total comprehensive income	—	—		—	27,285		6,684		—		33,969
Exercise of stock options	433,352	4		4,459	—		—		—		4,463
Stock-based compensation expense	272,630	2		2,076	—		—		883		2,961
Dividends paid ($1.36 per share)	—	—		—	(125,794	)	—		—		(125,794	)
Ending balance at June 30, 2014	94,949,695	$	949	626,213	471,038		(5,216	)	(22,200	)	1,070,784

										Accumulated
										Other		Unallocated		Total
	Common Stock					Paid-in		Retained		Comprehensive		common stock		Shareholders’
Six months ended June 30, 2015	Shares		Amount			Capital		Earnings		Income/ (loss)		of ESOP		Equity
Beginning balance at December 31, 2014	94,721,453		$	947		626,134		481,577		(24,370	)	(21,641	)	1,062,647
Comprehensive income:
Net income	—		—			—		31,475		—		—		31,475
Other comprehensive income, net of tax of $(1,091)	—		—			—		—		1,787		—		1,787
Total comprehensive income	—		—			—		31,475		1,787		—		33,262
Exercise of stock options	210,746		2			2,065		—		—		—		2,067
Stock-based compensation expense, including tax benefit of $6	306,350		3			2,120		—		—		156		2,279
Share repurchases	(497,800	)	(5		)	(5,998	)	—		—		—		(6,003	)
Dividends paid ($0.28 per share)	—		—			—		(25,902	)	—		—		(25,902	)
Ending balance at June 30, 2015	94,740,749		$	947		624,321		487,150		(22,583	)	(21,485	)	1,068,350

See accompanying notes to unaudited consolidated financial statements

5

NORTHWEST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)

	Six months ended
	June 30,
	2015			2014
OPERATING ACTIVITIES:
Net Income	$	31,475		27,285
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	1,950			15,770
Net gain on sale of assets	(311		)	(3,874	)
Net depreciation, amortization and accretion	2,571			4,937
Decrease in other assets	11,233			4,661
Increase/ (decrease) in other liabilities	1,169			(3,531	)
Net amortization on marketable securities	173			210
Noncash write-down of real estate owned	1,927			1,381
Origination of loans held for sale	(221		)	(758	)
Proceeds from sale of loans held for sale	224			1,023
Noncash compensation expense related to stock benefit plans	2,279			2,961
Net cash provided by operating activities	52,469			50,065
INVESTING ACTIVITIES:
Purchase of marketable securities available-for-sale	(59,980		)	(22,805	)
Proceeds from maturities and principal reductions of marketable securities held-to-maturity	42,409			7,205
Proceeds from maturities and principal reductions of marketable securities available-for-sale	111,630			70,071
Proceeds from sale of marketable securities available-for-sale	1,214			6,048
Loan originations	(996,253		)	(939,594	)
Proceeds from loan maturities and principal reductions	850,823			842,751
Purchase of Federal Home Loan Bank stock	(4,773		)	(271	)
Proceeds from sale of real estate owned	5,704			5,704
Sale of real estate owned for investment, net	304			304
Purchase of premises and equipment	(5,172		)	(5,034	)
Acquistions, net of cash received	(438		)	(2,792	)
Net cash used in investing activities	(54,532		)	(38,413	)

6

NORTHWEST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (continued)

(in thousands)

	Six months ended
	June 30,
	2015			2014
FINANCING ACTIVITIES:
Increase in deposits, net	$	61,940		105,043
Proceeds from long-term borrowings	85,000			—
Repayments of long-term borrowings	(50,026		)	(27	)
Net decrease in short-term borrowings	(24,027		)	(12,283	)
Increase in advances by borrowers for taxes and insurance	11,256			11,008
Cash dividends paid	(25,902		)	(125,793	)
Purchase of common stock for retirement	(6,003		)	—
Proceeds from stock options exercised	2,067			4,463
Net provided by/ (used in) financing activities	54,305			(17,589	)
Net increase/ (decrease) in cash and cash equivalents	$	52,242		(5,937	)
Cash and cash equivalents at beginning of period	$	240,706		391,905
Net increase/ (decrease) in cash and cash equivalents	52,242			(5,937	)
Cash and cash equivalents at end of period	$	292,948		385,968
Cash and cash equivalents:
Cash and due from banks	$	84,000		97,467
Interest-earning deposits in other financial institutions	208,311			287,867
Federal funds sold and other short-term investments	637			634
Total cash and cash equivalents	$	292,948		385,968
Cash paid during the period for:
Interest on deposits and borrowings (including interest credited to deposit accounts of $10,508 and $11,608, respectively)	$	27,325		28,490
Income taxes	$	4,823		14,872
Business acquistions:
Fair value of assets acquired	$	438		2,798
Cash paid	(438		)	(2,792	)
Liabilities assumed	$	—		6
Non-cash activities:
Loans foreclosures and repossessions	$	5,012		3,707
Sale of real estate owned financed by the Company	$	174		330

See accompanying notes to unaudited consolidated financial statements

7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Unaudited

(1)Basis of Presentation and Informational Disclosures

Northwest Bancshares, Inc. (the “Company”) or (“NWBI”), a Maryland corporation headquartered in Warren, Pennsylvania, is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System.  The Company was incorporated to be the successor to Northwest Bancorp, Inc. upon the completion of the mutual-to-stock conversion of Northwest Bancorp, MHC in December 2009.  The primary activity of the Company is the ownership of all of the issued and outstanding common stock of Northwest Bank, a Pennsylvania-chartered savings bank (“Northwest”).  Northwest is regulated by the FDIC and the Pennsylvania Department of Banking.  At June 30, 2015, Northwest operated 161 community-banking offices throughout Pennsylvania, western New York, eastern Ohio and Maryland.

The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiary, Northwest, and Northwest’s subsidiaries Northwest Settlement Agency, LLC, Northwest Consumer Discount Company, Northwest Financial Services, Inc., Northwest Advisors, Inc., Northwest Capital Group, Inc., Allegheny Services, Inc., Great Northwest Corporation, Boetger & Associates, Inc. and The Bert Company. The unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information or footnotes required for complete annual financial statements.  In the opinion of management, all adjustments necessary for the fair presentation of the Company’s financial position and results of operations have been included.  The consolidated statements have been prepared using the accounting policies described in the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 updated, as required, for any new pronouncements or changes.

Certain items previously reported have been reclassified to conform with the current year’s reporting format.

The results of operations for the quarter and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, or any other period.

Stock-Based Compensation

On May 20, 2015, we awarded employees 600,570 stock options and directors 64,800 stock options with an exercise price of $12.37 and grant date fair value of $1.14 per stock option.  On May 20, 2015, we also awarded employees 282,050 restricted common shares and directors 24,300 restricted common shares with a grant date fair value of $12.31.  Awarded stock options and common shares vest over a ten-year period with the first vesting occurring on the grant date.  Stock-based compensation expense of $1.4 million and $1.7 million for the quarters ended June 30, 2015 and 2014, respectively, and $2.3 million and $3.0 million for the six months ended June 30, 2015 and 2014, respectively, was recognized in compensation expense relating to our stock benefit plans.  At June 30, 2015 there was compensation expense of $4.8 million to be recognized for awarded but unvested stock options and $16.3 million for unvested common shares.

Income Taxes- Uncertain Tax Positions

Accounting standards prescribe a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return.  A tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable, based on its technical merits.  The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized

8

upon ultimate settlement with a taxing authority having full knowledge of all relevant information.  At June 30, 2015 we had no liability for unrecognized tax benefits.

We recognize interest accrued related to: (1) unrecognized tax benefits in federal and state income taxes and (2) refund claims in other operating income.  We recognize penalties (if any) in federal and state income taxes.  There is no amount accrued for the payment of interest or penalties at June 30, 2015.  We are subject to audit by the Internal Revenue Service and any state in which we conduct business for the tax periods ended December 31, 2013, 2012 and 2011.  We are currently under audit by the state of New York for the tax periods ended December 31, 2013, 2012 and 2011.

Recent Accounting Pronouncements

In May 2014 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers”. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of this guidance requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and provides five steps to be analyzed to accomplish the core principle. This guidance is effective retrospectively for annual reporting periods beginning after December 15, 2017, including interim periods within those years and early adoption is not permitted.  We are currently evaluating the impact this standard will have on our results of operations and financial position.

In June 2014 the FASB issued ASU 2014-12, “Compensation—Stock Compensation”. This guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Specifically, if the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. Further, the total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. This guidance is effective for annual periods beginning after December 15, 2015, including interim periods within those years and early adoption is permitted.  We do not expect that this standard will have a material impact on our results of operations or financial position.

In February 2015 the FASB issued ASU 2015-02, “Consolidation”. This guidance amends existing standards regarding the evaluation of certain legal entities and their consolidation in the financial statements. The amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities and eliminate the presumption that a general partner should consolidate a limited partnership. The amendments also affect the consolidation analysis of reporting entities that are involved with variable interest entities and provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for annual periods beginning after December 15, 2015, including interim periods within those years and early adoption is permitted.  We do not expect that this standard will have a material impact on our results of operations or financial position.

9

(2)Business Segments

We operate in two reportable business segments: Community Banking and Consumer Finance.  The Community Banking segment provides services traditionally offered by full-service community banks, including business and personal deposit accounts and business and personal loans, as well as insurance, brokerage and investment management and trust services.  The Consumer Finance segment, which is comprised of Northwest Consumer Discount Company, a subsidiary of Northwest, operates 51 offices in Pennsylvania and offers personal installment loans for a variety of consumer and real estate products.  This activity is funded primarily through an intercompany borrowing relationship with Allegheny Services, Inc., a subsidiary of Northwest.  Net income is the primary measure used by management to measure segment performance.  The following tables provide financial information for these reportable segments.  The “All Other” column represents the parent company and elimination entries necessary to reconcile to the consolidated amounts presented in the financial statements.

At or for the quarter ended:

	Community		Consumer
June 30, 2015 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	71,273	4,492	205		75,970
Intersegment interest income	582		—	(582	)	—
Interest expense	12,781		582	429		13,792
Provision for loan losses	850		200	—		1,050
Noninterest income	16,080		411	34		16,525
Noninterest expense	51,682		3,081	372		55,135
Income tax expense (benefit)	7,183		434	(404	)	7,213
Net income	$	15,439	606	(740	)	15,305
Total assets	$	7,740,273	108,348	15,889		7,864,510

	Community		Consumer
June 30, 2014 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	72,061	4,706	220		76,987
Intersegment interest income	591		—	(591	)	—
Interest expense	13,148		591	475		14,214
Provision for loan losses	7,500		785	—		8,285
Noninterest income	15,932		482	13		16,427
Noninterest expense	50,540		2,948	318		53,806
Income tax expense (benefit)	4,489		358	(412	)	4,435
Net income	$	12,907	506	(739	)	12,674
Total assets	$	7,772,277	105,909	22,442		7,900,628

(1)   Eliminations consist of intercompany loans, interest income and interest expense.

10

At or for the six months ended:

	Community		Consumer
June 30, 2015 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	143,604	8,822	424		152,850
Intersegment interest income	1,157		—	(1,157	)	—
Interest expense	25,669		1,157	865		27,691
Provision for loan losses	1,100		850	—		1,950
Noninterest income	30,406		681	63		31,150
Noninterest expense	102,122		6,034	690		108,846
Income tax expense (benefit)	14,218		609	(789	)	14,038
Net income	$	32,058	853	(1,436	)	31,475
Total assets	$	7,740,273	108,348	15,889		7,864,510

	Community		Consumer
June 30, 2014 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	142,405	9,365	543		152,313
Intersegment interest income	1,197		—	(1,197	)	—
Interest expense	26,317		1,197	904		28,418
Provision for loan losses	14,350		1,420	—		15,770
Noninterest income	32,689		770	2,349		35,808
Noninterest expense	100,402		5,869	698		106,969
Income tax expense (benefit)	9,002		684	(7	)	9,679
Net income	$	26,220	965	100		27,285
Total assets	$	7,772,277	105,909	22,442		7,900,628

(1)   Eliminations consist of intercompany loans, interest income and interest expense.

11

(3)Investment securities and impairment of investment securities

The following table shows the portfolio of investment securities available-for-sale at June 30, 2015 (in thousands):

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding		Fair
	cost		gains	losses		value
Debt issued by the U.S. government and agencies:
Due in one year or less	$	21	—	—		21
Debt issued by government sponsored enterprises:
Due in one year or less	500		8	—		508
Due after one year through five years	320,553		466	(1,035	)	319,984
Due after five years through ten years	24,500		—	(28	)	24,472
Equity securities	1,417		515	—		1,932
Municipal securities:
Due in one year or less	1,085		3	—		1,088
Due after one year through five years	6,733		118	—		6,851
Due after five years through ten years	4,651		113	—		4,764
Due after ten years	48,627		1,651	(32	)	50,246
Corporate debt issues:
Due after ten years	17,002		2,324	(396	)	18,930
Residential mortgage-backed securities:
Fixed rate pass-through	65,398		2,693	(321	)	67,770
Variable rate pass-through	60,275		3,182	(8	)	63,449
Fixed rate non-agency CMOs	2,793		320	—		3,113
Fixed rate agency CMOs	201,346		579	(3,684	)	198,241
Variable rate agency CMOs	99,246		578	(36	)	99,788
Total residential mortgage-backed securities	429,058		7,352	(4,049	)	432,361
Total marketable securities available-for-sale	$	854,147	12,550	(5,540	)	861,157

12

The following table shows the portfolio of investment securities available-for-sale at December 31, 2014 (in thousands):

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding		Fair
	cost		gains	losses		value
Debt issued by the U.S. government and agencies:
Due in one year or less	$	25	—	—		25
Debt issued by government sponsored enterprises:
Due after one year through five years	310,172		287	(2,672	)	307,787
Due after five years through ten years	25,746		—	(28	)	25,718
Equity securities	2,591		682	(116	)	3,157
Municipal securities:
Due in one year or less	810		15	—		825
Due after one year through five years	7,878		132	—		8,010
Due after five years through ten years	6,965		115	—		7,080
Due after ten years	51,839		2,391	—		54,230
Corporate debt issues:
Due after ten years	18,267		2,579	(419	)	20,427
Residential mortgage-backed securities:
Fixed rate pass-through	72,852		3,149	(124	)	75,877
Variable rate pass-through	66,140		3,466	(8	)	69,598
Fixed rate non-agency CMOs	3,162		246	—		3,408
Fixed rate agency CMOs	226,413		685	(5,331	)	221,767
Variable rate agency CMOs	113,842		657	(37	)	114,462
Total residential mortgage-backed securities	482,409		8,203	(5,500	)	485,112
Total marketable securities available-for-sale	$	906,702	14,404	(8,735	)	912,371

The following table shows the portfolio of investment securities held-to-maturity at June 30, 2015 (in thousands):

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding	Fair
	cost		gains	losses	value
Municipal securities:
Due after five years through ten years	$	4,641	36	—	4,677
Due after ten years	25,831		544	—	26,375
Residential mortgage-backed securities:
Fixed rate pass-through	7,292		408	—	7,700
Variable rate pass-through	3,927		96	—	4,023
Fixed rate agency CMOs	18,762		392	—	19,154
Variable rate agency CMOs	1,011		17	—	1,028
Total residential mortgage-backed securities	30,992		913	—	31,905
Total marketable securities held-to-maturity	$	61,464	1,493	—	62,957

13

The following table shows the portfolio of investment securities held-to-maturity at December 31, 2014 (in thousands):

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding	Fair
	cost		gains	losses	value
Municipal securities:
Due after five years through ten years	$	10,207	141	—	10,348
Due after ten years	56,545		1,314	—	57,859
Residential mortgage-backed securities:
Fixed rate pass-through	8,236		477	—	8,713
Variable rate pass-through	4,273		122	—	4,395
Fixed rate agency CMOs	23,382		531	—	23,913
Variable rate agency CMOs	1,052		12	—	1,064
Total residential mortgage-backed securities	36,943		1,142	—	38,085
Total marketable securities held-to-maturity	$	103,695	2,597	—	106,292

The following table shows the fair value of and gross unrealized losses on investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2015 (in thousands):

	Less than 12 months				12 months or more			Total
			Unrealized			Unrealized			Unrealized
	Fair value		loss		Fair value	loss		Fair value	loss
U.S. government and agencies	$	101,837	(340	)	125,031	(723	)	226,868	(1,063	)
Municipal securities	750		(32	)	—	—		750	(32	)
Corporate issues	—		—		2,028	(396	)	2,028	(396	)
Residential mortgage- backed securities - agency	18,148		(73	)	166,264	(3,976	)	184,412	(4,049	)
Total temporarily impaired securities	$	120,735	(445	)	293,323	(5,095	)	414,058	(5,540	)

14

The following table shows the fair value of and gross unrealized losses on investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2014 (in thousands):

	Less than 12 months				12 months or more			Total
			Unrealized			Unrealized			Unrealized
	Fair value		loss		Fair value	loss		Fair value	loss
U.S. government and agencies	$	28,878	(67	)	244,828	(2,633	)	273,706	(2,700	)
Corporate debt issues	—		—		2,003	(419	)	2,003	(419	)
Equity securities	506		(116	)	—	—		506	(116	)
Residential mortgage- backed securities - agency	20,832		(79	)	195,505	(5,421	)	216,337	(5,500	)
Total temporarily impaired securities	$	50,216	(262	)	442,336	(8,473	)	492,552	(8,735	)

We review our investment portfolio on a quarterly basis for indications of impairment.  This review includes analyzing the length of time and the extent to which amortized costs have exceeded fair values, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer, and the intent to hold the investments for a period of time sufficient to allow for a recovery in value.  Certain investments are evaluated using our best estimate of future cash flows. If the estimate of cash flows indicates that an adverse change has occurred, other-than-temporary impairment is recognized for the amount of the unrealized loss that was deemed credit related.

Credit related other-than-temporary impairment on all debt securities is recognized in earnings while noncredit related other-than-temporary impairment on available-for-sale debt securities, not expected to be sold, is recognized in other comprehensive income.

The table below shows a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the quarter ended (in thousands):

	2015			2014
Beginning balance at April 1, (1)	$	8,865		10,334
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized	—			—
Reduction for losses realized during the quarter	(16		)	(170	)
Reduction for securities called realized during the quarter	(360		)
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized	—			—
Ending balance at June 30,	$	8,489		10,164

(1) – The beginning balance represents credit losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.

15

The table below shows a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the six months ended (in thousands):

	2015			2014
Beginning balance at January 1, (1)	$	8,894		10,342
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized	—			—
Reduction for losses realized during the six months	(45		)	(178	)
Reduction for securities called realized during the six months	(360		)
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized	—			—
Ending balance at June 30,	$	8,489		10,164

(1) – The beginning balance represents credit losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.

(4)Loans receivable

The following table shows a summary of our loans receivable at June 30, 2015 and December 31, 2014 (in thousands):

	June 30,			December 31,
	2015			2014
Personal Banking:
Residential mortgage loans	$	2,597,204		2,526,240
Home equity loans	1,055,829			1,066,131
Other consumer loans	252,391			242,744
Total Personal Banking	3,905,424			3,835,115
Business Banking:
Commercial real estate	1,986,613			1,874,944
Commercial loans	368,417			419,525
Total Business Banking	2,355,030			2,294,469
Total loans receivable, gross	6,260,454			6,129,584
Deferred loan costs	10,251			6,095
Allowance for loan losses	(59,057		)	(67,518	)
Undisbursed loan proceeds:
Residential mortgage loans	(10,285		)	(10,879	)
Commercial real estate	(126,870		)	(73,760	)
Commercial loans	(8,893		)	(61,149	)
Total loans receivable, net	$	6,065,600		5,922,373

16

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the quarter ended June 30, 2015 (in thousands):

	Balance June 30, 2015		Current period provision		Charge-offs		Recoveries	Balance March 31, 2015
Personal Banking:
Residental mortgage loans	$	4,892	76		(278	)	17	5,077
Home equity loans	3,445		(187	)	(542	)	131	4,043
Other consumer loans	6,244		1,865		(1,759	)	303	5,835
Total Personal Banking	14,581		1,754		(2,579	)	451	14,955
Business Banking:
Commercial real estate loans	30,163		(1,558	)	(3,439	)	1,908	33,252
Commercial loans	14,313		4,832		(6,356	)	724	15,113
Total Business Banking	44,476		3,274		(9,795	)	2,632	48,365
Unallocated (1)	—		(3,978	)	—		—	3,978
Total	$	59,057	1,050		(12,374	)	3,083	67,298

(1) – Due to enhancements in our allowance for loan losses process we allocated the previously unallocated allowance using both qualitative and quantitative factors.

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the quarter ended June 30, 2014 (in thousands):

	Balance June 30, 2014		Current period provision	Charge-offs		Recoveries	Balance March 31, 2014
Personal Banking:
Residental mortgage loans	$	7,767	1,142	(883	)	41	7,467
Home equity loans	6,516		72	(593	)	79	6,958
Other consumer loans	5,626		1,495	(1,450	)	301	5,280
Total Personal Banking	19,909		2,709	(2,926	)	421	19,705
Business Banking:
Commercial real estate loans	35,081		364	(2,578	)	1,086	36,209
Commercial loans	12,106		5,017	(9,516	)	436	16,169
Total Business Banking	47,187		5,381	(12,094	)	1,522	52,378
Unallocated	4,346		195	—		—	4,151
Total	$	71,442	8,285	(15,020	)	1,943	76,234

17

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the six months ended June 30, 2015 (in thousands):

	Balance June 30, 2015		Current period provision		Charge-offs		Recoveries	Balance December 31, 2014
Personal Banking:
Residental mortgage loans	$	4,892	(206	)	(613	)	130	5,581
Home equity loans	3,445		(400	)	(884	)	179	4,550
Other consumer loans	6,244		3,135		(3,699	)	690	6,118
Total Personal Banking	14,581		2,529		(5,196	)	999	16,249
Business Banking:
Commercial real estate loans	30,163		(1,316	)	(4,552	)	2,642	33,389
Commercial loans	14,313		5,102		(7,080	)	2,776	13,515
Total Business Banking	44,476		3,786		(11,632	)	5,418	46,904
Unallocated (1)	—		(4,365	)	—		—	4,365
Total	$	59,057	1,950		(16,828	)	6,417	67,518

(1) - Due to enhancements in our allowance for loan losses process we allocated the previously unallocated allowance using both qualitative and quantitative factors.

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the six months ended June 30, 2014 (in thousands):

	Balance June 30, 2014		Current period provision		Charge-offs		Recoveries	Balance December 31, 2013
Personal Banking:
Residental mortgage loans	$	7,767	1,177		(1,342	)	57	7,875
Home equity loans	6,516		109		(965	)	127	7,245
Other consumer loans	5,626		2,679		(3,166	)	626	5,487
Total Personal Banking	19,909		3,965		(5,473	)	810	20,607
Business Banking:
Commercial real estate loans	35,081		1,685		(3,510	)	1,707	35,199
Commercial loans	12,106		10,436		(10,286	)	1,076	10,880
Total Business Banking	47,187		12,121		(13,796	)	2,783	46,079
Unallocated	4,346		(316	)	—		—	4,662
Total	$	71,442	15,770		(19,269	)	3,593	71,348

18

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at June 30, 2015 (in thousands):

	Recorded investment in loans receivable		Allowance for loan losses	Recorded investment in loans on nonaccrual (1)	Recorded investment in loans past due 90 days or more and still accruing	TDRs	Allowance related to TDRs	Additional commitments to customers with loans classified as TDRs
Personal Banking:
Residental mortgage loans	$	2,597,170	4,892	18,977	6	6,340	1,008	—
Home equity loans	1,055,829		3,445	6,482	—	2,588	276	—
Other consumer loans	252,391		6,244	2,638	358	—	—	—
Total Personal Banking	3,905,390		14,581	28,097	364	8,928	1,284	—
Business Banking:
Commercial real estate loans	1,859,743		30,163	22,640	—	37,028	1,718	141
Commercial loans	359,524		14,313	7,259	21	10,228	787	883
Total Business Banking	2,219,267		44,476	29,899	21	47,256	2,505	1,024
Total	$	6,124,657	59,057	57,996	385	56,184	3,789	1,024

(1)   Includes $15.4 million of nonaccrual TDRs.

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at December 31, 2014 (in thousands):

	Recorded investment in loans receivable		Allowance for loan losses	Recorded investment in loans on nonaccrual (1)	Recorded investment in loans past due 90 days or more and still accruing	TDRs	Allowance related to TDRs	Additional commitments to customers with loans classified as TDRs
Personal Banking:
Residental mortgage loans	$	2,521,456	5,581	21,194	8	6,574	1,133	—
Home equity loans	1,066,131		4,550	9,569	—	2,412	229	—
Other consumer loans	242,744		6,118	2,820	206	—	—	—
Total Personal Banking	3,830,331		16,249	33,583	214	8,986	1,362	—
Business Banking:
Commercial real estate loans	1,801,184		33,389	38,647	—	41,917	4,938	449
Commercial loans	358,376		13,515	7,578	21	10,885	1,095	814
Total Business Banking	2,159,560		46,904	46,225	21	52,802	6,033	1,263
Total	$	5,989,891	63,153	79,808	235	61,788	7,395	1,263

(1)   Includes $24.5 million of nonaccrual TDRS.

19

The following table provides geographical and delinquency information related to the loan portfolio by portfolio segment and class of financing receivable at June 30, 2015 (in thousands):

	Pennsylvania			New York		Ohio		Maryland		Other		Total
Recorded investment in loans receivable:
Personal Banking:
Residential mortgage loans	$	2,223,206		165,217		18,379		133,981		56,387		2,597,170
Home equity loans	897,285			119,459		8,447		25,732		4,906		1,055,829
Other consumer loans	232,797			11,103		3,740		1,396		3,355		252,391
Total Personal Banking	3,353,288			295,779		30,566		161,109		64,648		3,905,390
Business Banking:
Commercial real estate loans	973,777			689,043		24,270		115,796		56,857		1,859,743
Commercial loans	273,771			53,881		16,717		6,080		9,075		359,524
Total Business Banking	1,247,548			742,924		40,987		121,876		65,932		2,219,267
Total	$	4,600,836		1,038,703		71,553		282,985		130,580		6,124,657
Percentage of total loans receivable	75.1		%	17.0	%	1.2	%	4.6	%	2.1	%	100.0	%

	Pennsylvania			New York		Ohio		Maryland		Other		Total
Loans 90 or more days delinquent:
Personal Banking:
Residential mortgage loans	$	11,498		1,553		58		1,820		1,196		16,125
Home equity loans	2,804			766		—		1,046		—		4,616
Other consumer loans	2,082			103		14		—		—		2,199
Total Personal Banking	16,384			2,422		72		2,866		1,196		22,940
Business Banking:
Commercial real estate loans	10,758			1,243		49		271		352		12,673
Commercial loans	1,845			—		13		—		—		1,858
Total Business Banking	12,603			1,243		62		271		352		14,531
Total	$	28,987		3,665		134		3,137		1,548		37,471
Percentage of total loans 90 or more days delinquent	77.3		%	9.8	%	0.4	%	8.4	%	4.1	%	100.0	%

20

The following table provides geographical and delinquency information related to the loan portfolio by portfolio segment and class of financing receivable at December 31, 2014 (in thousands):

	Pennsylvania			New York		Ohio		Maryland		Other		Total
Recorded investment in loans receivable:
Personal Banking:
Residential mortgage loans	$	2,151,361		161,445		18,486		134,228		55,936		2,521,456
Home equity loans	909,139			115,459		9,087		27,203		5,243		1,066,131
Other consumer loans	225,088			9,961		3,132		1,328		3,235		242,744
Total Personal Banking	3,285,588			286,865		30,705		162,759		64,414		3,830,331
Business Banking:
Commercial real estate loans	1,013,632			590,934		24,901		114,850		56,867		1,801,184
Commercial loans	243,159			83,252		15,826		7,817		8,322		358,376
Total Business Banking	1,256,791			674,186		40,727		122,667		65,189		2,159,560
Total	$	4,542,379		961,051		71,432		285,426		129,603		5,989,891
Percentage of total loans receivable	75.8		%	16.0	%	1.2	%	4.8	%	2.2	%	100.0	%

	Pennsylvania			New York		Ohio		Maryland		Other		Total
Loans 90 or more days delinquent:
Personal Banking:
Residential mortgage loans	$	12,282		1,237		710		1,678		1,789		17,696
Home equity loans	4,474			936		35		1,058		103		6,606
Other consumer loans	2,388			55		7		—		—		2,450
Total Personal Banking	19,144			2,228		752		2,736		1,892		26,752
Business Banking:
Commercial real estate loans	8,827			1,072		—		270		930		11,099
Commercial loans	2,659			284		—		207		325		3,475
Total Business Banking	11,486			1,356		—		477		1,255		14,574
Total	$	30,630		3,584		752		3,213		3,147		41,326
Percentage of total loans 90 or more days delinquent	74.1		%	8.7	%	1.8	%	7.8	%	7.6	%	100.0	%

21

The following table provides information related to the composition of impaired loans by portfolio segment and by class of financing receivable at and for the six months ended June 30, 2015 (in thousands):

	Nonaccrual loans 90 or more days delinquent		Nonaccrual loans less than 90 days delinquent	Loans less than 90 days delinquent reviewed for impairment	TDRs less than 90 days delinquent not included elsewhere	Total impaired loans	Average recorded investment in impaired loans	Interest income recognized on impaired loans
Personal Banking:
Residental mortgage loans	$	16,125	2,852	—	5,237	24,214	24,895	433
Home equity loans	4,616		1,866	—	2,127	8,609	10,097	223
Other consumer loans	2,199		439	—	—	2,638	2,645	44
Total Personal Banking	22,940		5,157	—	7,364	35,461	37,637	700
Business Banking:
Commercial real estate loans	12,673		9,967	26,960	16,615	66,215	79,416	1,564
Commercial loans	1,858		5,401	1,736	4,806	13,801	18,232	345
Total Business Banking	14,531		15,368	28,696	21,421	80,016	97,648	1,909
Total	$	37,471	20,525	28,696	28,785	115,477	135,285	2,609

The following table provides information related to the composition of impaired loans by portfolio segment and by class of financing receivable at and for the year ended December 31, 2014 (in thousands):

	Nonaccrual loans 90 or more days delinquent		Nonaccrual loans less than 90 days delinquent	Loans less than 90 days delinquent reviewed for impairment	TDRs less than 90 days delinquent not included elsewhere	Total impaired loans	Average recorded investment in impaired loans	Interest income recognized on impaired loans
Personal Banking:
Residental mortgage loans	$	17,696	3,498	—	5,845	27,039	28,227	817
Home equity loans	6,606		2,963	—	1,706	11,275	11,753	485
Other consumer loans	2,450		370	—	—	2,820	2,383	66
Total Personal Banking	26,752		6,831	—	7,551	41,134	42,363	1,368
Business Banking:
Commercial real estate loans	11,099		27,548	26,400	12,128	77,175	90,187	3,589
Commercial loans	3,475		4,103	5,266	6,026	18,870	27,088	914
Total Business Banking	14,574		31,651	31,666	18,154	96,045	117,275	4,503
Total	$	41,326	38,482	31,666	25,705	137,179	159,638	5,871

22

The following table provides information related to the evaluation of impaired loans by portfolio segment and by class of financing receivable at June 30, 2015 (in thousands):

	Loans collectively evaluated for impairment		Loans individually evaluated for impairment	Loans individually evaluated for impairment for which there is a related impairment reserve	Related impairment reserve	Loans individually evaluated for impairment for which there is no related reserve
Personal Banking:
Residental mortgage loans	$	2,590,038	7,132	7,132	1,221	—
Home equity loans	1,053,241		2,588	2,588	276	—
Other consumer loans	252,294		97	97	2	—
Total Personal Banking	3,895,573		9,817	9,817	1,499	—
Business Banking:
Commercial real estate loans	1,798,992		60,751	30,513	2,117	30,238
Commercial loans	348,670		10,854	7,245	705	3,609
Total Business Banking	2,147,662		71,605	37,758	2,822	33,847
Total	$	6,043,235	81,422	47,575	4,321	33,847

The following table provides information related to the evaluation of impaired loans by portfolio segment and by class of financing receivable at December 31, 2014 (in thousands):

	Loans collectively evaluated for impairment		Loans individually evaluated for impairment	Loans individually evaluated for impairment for which there is a related impairment reserve	Related impairment reserve	Loans individually evaluated for impairment for which there is no related reserve
Personal Banking:
Residental mortgage loans	$	2,514,060	7,396	7,396	1,116	—
Home equity loans	1,063,741		2,390	2,390	246	—
Other consumer loans	242,678		66	66	1	—
Total Personal Banking	3,820,479		9,852	9,852	1,363	—
Business Banking:
Commercial real estate loans	1,734,864		66,320	42,869	6,189	23,451
Commercial loans	343,416		14,960	10,938	1,378	4,022
Total Business Banking	2,078,280		81,280	53,807	7,567	27,473
Total	$	5,898,759	91,132	63,659	8,930	27,473

23

Our loan portfolios include loans that have been modified in a troubled debt restructuring (TDR), where concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include: extending the note’s maturity date, permitting interest only payments, reducing the interest rate to a rate lower than current market rates for new debt with similar risk, reducing the principal payment, principal forbearance or other actions.  These concessions are applicable to all loan segments and classes. Certain TDRs are classified as nonperforming at the time of restructuring and may be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months.

When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, the loan’s observable market price or the current fair value of the collateral, less selling costs, for collateral dependent loans.  If we determine that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance.  In periods subsequent to modification, we evaluate all TDRs, including those that have payment defaults, for possible impairment, using ASC 310-10. As a result, loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan.

Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default.  If loans modified in a TDR subsequently default, we evaluate the loan for possible further impairment. The allowance may be increased, adjustments may be made in the allocation of the allowance, partial charge-offs may be taken to further write-down the carrying value of the loan, or the loan may be charged-off completely.

24

The following table provides a roll forward of troubled debt restructurings for the periods indicated (in thousands):

	For the quarters ended June 30,
	2015				2014
	Number of contracts				Number of contracts
Beginning TDR balance:	242	$	60,645		258	$	74,511
New TDRs	4	386			6	1,343
Re-modified TDRs	1	45			—	—
Net paydowns		(3,617		)		(2,526		)
Charge-offs:
Residential mortgage loans	—	—			—	—
Home equity loans	1	(68		)	1	(130		)
Commercial real estate loans	1	(9		)	—	—
Commercial loans	—	—			7	(8,244		)
Paid-off loans:
Residential mortgage loans	1	(53		)	—	—
Home equity loans	—	—			1	(39		)
Commercial real estate loans	6	(926		)	4	(561		)
Commercial loans	6	(219		)	3	(561		)
Ending TDR balance:	231	$	56,184		248	$	63,793
Accruing TDRs		$	40,741			$	39,844
Non-accrual TDRs		15,443				23,949

The following table provides a roll forward of troubled debt restructurings for the periods indicated (in thousands):

	For the six months ended June 30,
	2015				2014
	Number of contracts				Number of contracts
Beginning TDR balance:	248	$	61,788		262	$	79,166
New TDRs	6	498			13	2,652
Re-modified TDRs	2	130			4	159
Net paydowns		(4,440		)		(7,020		)
Charge-offs:
Residential mortgage loans	—	—			—	—
Home equity loans	3	(99		)	1	(130		)
Commercial real estate loans	2	(23		)	2	(31		)
Commercial loans	2	(387		)	8	(8,251		)
Paid-off loans:
Residential mortgage loans	1	(53		)	—	—
Home equity loans	1	(6		)	1	(39		)
Commercial real estate loans	8	(1,005		)	6	(838		)
Commercial loans	6	(219		)	9	(1,875		)
Ending TDR balance:	231	$	56,184		248	$	63,793
Accruing TDRs		$	40,741			$	39,844
Non-accrual TDRs		15,443				23,949

25

The following table provides information related to troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated (dollars in thousands):

	For the quarter ended June 30, 2015					For the six months ended June 30, 2015
	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Troubled debt restructurings:
Personal Banking:
Residential mortgage loans	2	$	120	119	—	4	$	232	230	1
Home equity loans	1	2		2	—	2	87		85	17
Other consumer loans	—	—		—	—	—	—		—	—
Total Personal Banking	3	122		121	—	6	319		315	18
Business Banking:
Commercial real estate loans	1	12		12	1	1	12		12	1
Commercial loans	1	297		294	29	1	297		294	29
Total Business Banking	2	309		306	30	2	309		306	30
Total	5	$	431	427	30	8	$	628	621	48
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Personal Banking:
Residential mortgage loans	1	$	251	250	—	1	$	251	250	—
Home equity loans	1	23		21	—	1	23		21	—
Other consumer loans	—	—		—	—	—	—		—	—
Total Personal Banking	2	274		271	—	2	274		271	—
Business Banking:
Commercial real estate loans	—	—		—	—	—	—		—	—
Commercial loans	—	—		—	—	1	50		—	—
Total Business Banking	—	—		—	—	1	50		—	—
Total	2	$	274	271	—	3	$	324	271	—

26

The following table provides information related to troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated (dollars in thousands):

	For the quarter ended June 30, 2014					For the six months months ended June 30, 2014
	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Troubled debt restructurings:
Personal Banking:
Residential mortgage loans	3	$	632	575	65	9	$	1,922	1,860	184
Home equity loans	2	376		346	2	2	376		346	2
Other consumer loans	—	—		—	—	—	—		—	—
Total Personal Banking	5	1,008		921	67	11	2,298		2,206	186
Business Banking:
Commercial real estate loans	—	—		—	—	3	89		82	32
Commercial loans	1	335		331	24	3	424		446	35
Total Business Banking	1	335		331	24	6	513		528	67
Total	6	$	1,343	1,252	91	17	$	2,811	2,734	253
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Personal Banking:
Residential mortgage loans	—	$	—	—	—	—	$	—	—	—
Home equity loans	—	—		—	—	—	—		—	—
Other consumer loans	—	—		—	—	—	—		—	—
Total Personal Banking	—	—		—	—	—	—		—	—
Business Banking:
Commercial real estate loans	2	128		126	35	2	128		126	35
Commercial loans	1	7,444		378	—	1	7,444		378	—
Total Business Banking	3	7,572		504	35	3	7,572		504	35
Total	3	$	7,572	504	35	3	$	7,572	504	35

27

The following table provides information as of June 30, 2015 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended June 30, 2015 (dollars in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	2	$	74	—	—	45	119
Home equity loans	1	—		—	2	—	2
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	3	74		—	2	45	121
Business Banking:
Commercial real estate loans	1	—		—	12	—	12
Commercial loans	1	—		—	294	—	294
Total Business Banking	2	—		—	306	—	306
Total	5	$	74	—	308	45	427

The following table provides information as of June 30, 2014 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended June 30, 2014 (dollars in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	3	$	—	—	575	—	575
Home equity loans	2	—		—	346	—	346
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	5	—		—	921	—	921
Business Banking:
Commercial real estate loans	—	—		—	—	—	—
Commercial loans	1	—		—	—	331	331
Total Business Banking	1	—		—	—	331	331
Total	6	$	—	—	921	331	1,252

28

The following table provides information as of June 30, 2015 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the six months ended June 30, 2015 (dollars in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	4	$	74	—	111	45	230
Home equity loans	2	83		—	2	—	85
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	6	157		—	113	45	315
Business Banking:
Commercial real estate loans	1	—		—	12	—	12
Commercial loans	1	—		—	294	—	294
Total Business Banking	2	—		—	306	—	306
Total	8	$	157	—	419	45	621

The following table provides information as of June 30, 2014 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the six months ended June 30, 2014 (dollars in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	9	$	—	—	1,860	—	1,860
Home equity loans	2	—		—	346	—	346
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	11	—		—	2,206	—	2,206
Business Banking:
Commercial real estate loans	3	—		—	58	24	82
Commercial loans	3	—		110	—	336	446
Total Business Banking	6	—		110	58	360	528
Total	17	$	—	110	2,264	360	2,734

29

The following table provides information related to re-modified troubled debt restructurings by portfolio segment and by class of financing receivable for the quarter ended June 30, 2015 (dollars in thousands):

	Number of re-	Type of re-modification
	modified TDRs	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	1	$	—	—	—	45	45
Home equity loans	—	—		—	—	—	—
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	1	—		—	—	45	45
Business Banking:
Commercial real estate loans	—	—		—	—	—	—
Commercial loans	—	—		—	—	—	—
Total Business Banking	—	—		—	—	—	—
Total	1	$	—	—	—	45	45

No TDRs were re-modified during the quarter ended June 30, 2014.

The following table provides information related to re-modified troubled debt restructurings by portfolio segment and by class of financing receivable for the six months ended June 30, 2015 (dollars in thousands):

	Number of re-	Type of re-modification
	modified TDRs	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	1	$	—	—	—	45	45
Home equity loans	1	83		—	—	—	83
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	2	83		—	—	45	128
Business Banking:
Commercial real estate loans	—	—		—	—	—	—
Commercial loans	—	—		—	—	—	—
Total Business Banking	—	—		—	—	—	—
Total	2	$	83	—	—	45	128

30

The following table provides information related to re-modified troubled debt restructurings by portfolio segment and by class of financing receivable for the six months ended June 30, 2014 (dollars in thousands):

	Number of re-	Type of re-modification
	modified TDRs	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	1	$	—	—	77	—	77
Home equity loans	—	—		—	—	—	—
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	1	—		—	77	—	77
Business Banking:
Commercial real estate loans	2	—		—	58	18	76
Commercial loans	1	—		—	—	5	5
Total Business Banking	3	—		—	58	23	81
Total	4	$	—	—	135	23	158

The following table provides information related to loan payment delinquencies at June 30, 2015 (in thousands):

	30-59 Days delinquent		60-89 Days delinquent	90 Days or greater delinquent	Total delinquency	Current	Recorded investment in loans receivable
Personal Banking:
Residential mortgage loans	$	3,250	5,815	16,125	25,190	2,571,980	2,597,170
Home equity loans	3,768		2,090	4,616	10,474	1,045,355	1,055,829
Other consumer loans	5,116		1,767	2,199	9,082	243,309	252,391
Total Personal Banking	12,134		9,672	22,940	44,746	3,860,644	3,905,390
Business Banking:
Commercial real estate loans	3,788		4,919	12,673	21,380	1,838,363	1,859,743
Commercial loans	1,363		159	1,858	3,380	356,144	359,524
Total Business Banking	5,151		5,078	14,531	24,760	2,194,507	2,219,267
Total	$	17,285	14,750	37,471	69,506	6,055,151	6,124,657

31

The following table provides information related to loan payment delinquencies at December 31, 2014 (in thousands):

	30-59 Days delinquent		60-89 Days delinquent	90 Days or greater delinquent	Total delinquency	Current	Recorded investment in loans receivable
Personal Banking:
Residential mortgage loans	$	27,443	6,970	17,696	52,109	2,469,347	2,521,456
Home equity loans	5,752		1,672	6,606	14,030	1,052,101	1,066,131
Other consumer loans	5,572		2,435	2,450	10,457	232,287	242,744
Total Personal Banking	38,767		11,077	26,752	76,596	3,753,735	3,830,331
Business Banking:
Commercial real estate loans	4,956		2,038	11,099	18,093	1,783,091	1,801,184
Commercial loans	2,262		209	3,475	5,946	352,430	358,376
Total Business Banking	7,218		2,247	14,574	24,039	2,135,521	2,159,560
Total	$	45,985	13,324	41,326	100,635	5,889,256	5,989,891

Credit quality indicators:  We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. We analyze loans individually by classifying the loans by credit risk.  Credit relationships greater than or equal to $1.0 million classified as special mention or substandard are reviewed quarterly for deterioration or improvement to determine if the loan is appropriately classified.  We use the following definitions for risk ratings other than pass:

Special mention — Loans designated as special mention have specific, well-defined risk issues, which create a high level of uncertainty regarding the long-term viability of the business. Loans in this class are considered to have high-risk characteristics.  A special mention loan exhibits material negative financial trends due to company-specific or systemic conditions.  If these potential weaknesses are not mitigated, they threaten the borrower’s capacity to meet its debt obligations.  Special mention loans still demonstrate sufficient financial flexibility to react to and positively address the root cause of the adverse financial trends without significant deviations from their current business strategy. Their potential weaknesses deserve our close attention and warrant enhanced monitoring.

Substandard — Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any.  Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.  They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.

Doubtful — Loans classified as doubtful have all the weaknesses inherent in those classified as substandard.   In addition, those weaknesses make collection or liquidation in full highly questionable and improbable.   A loan classified as doubtful exhibits discernible loss potential, but a complete loss seems very unlikely.  The possibility of a loss on a doubtful loan is high, but because of certain important and reasonably specific pending factors that may strengthen the loan, its classification as an estimated loss is deferred until a more exact status can be determined.

32

Loss — Loans classified as loss are considered uncollectible and of such value that the continuance as a loan is not warranted.  A loss classification does not mean that the loan has no recovery or salvage value; instead, it means that it is not practical or desirable to defer writing off all or a portion of a basically worthless loan even though partial recovery may be possible in the future.

The following table sets forth information about credit quality indicators, which were updated during the quarter ended June 30, 2015 (in thousands):

	Pass		Special mention	Substandard	Doubtful	Loss	Recorded investment in loans receivable
Personal Banking:
Residential mortgage loans	$	2,584,438	—	11,362	—	1,370	2,597,170
Home equity loans	1,051,213		—	4,616	—	—	1,055,829
Other consumer loans	250,648		—	1,743	—	—	252,391
Total Personal Banking	3,886,299		—	17,721	—	1,370	3,905,390
Business Banking:
Commercial real estate loans	1,688,449		37,497	133,797	—	—	1,859,743
Commercial loans	301,467		19,793	38,262	2	—	359,524
Total Business Banking	1,989,916		57,290	172,059	2	—	2,219,267
Total	$	5,876,215	57,290	189,780	2	1,370	6,124,657

The following table sets forth information about credit quality indicators, which were updated during the year ended December 31, 2014 (in thousands):

	Pass		Special mention	Substandard	Doubtful	Loss	Recorded investment in loans receivable
Personal Banking:
Residential mortgage loans	$	2,507,269	—	12,763	—	1,424	2,521,456
Home equity loans	1,059,525		—	6,606	—	—	1,066,131
Other consumer loans	240,947		—	1,797	—	—	242,744
Total Personal Banking	3,807,741		—	21,166	—	1,424	3,830,331
Business Banking:
Commercial real estate loans	1,618,269		36,908	145,502	505	—	1,801,184
Commercial loans	286,234		23,690	46,280	2,172	—	358,376
Total Business Banking	1,904,503		60,598	191,782	2,677	—	2,159,560
Total	$	5,712,244	60,598	212,948	2,677	1,424	5,989,891

33

(5)Goodwill and Other Intangible Assets

The following table provides information for intangible assets subject to amortization at the dates indicated (in thousands):

	June 30,			December 31,
	2015			2014
Amortizable intangible assets:
Core deposit intangibles — gross	$	30,578		30,578
Acquisitions	—			—
Less: accumulated amortization	(30,578		)	(30,578	)
Core deposit intangibles — net	—			—
Customer and Contract intangible assets — gross	8,234			6,197
Acquisitions	263			2,037
Less: accumulated amortization	(5,738		)	(5,201	)
Customer and Contract intangible assets — net	$	2,759		3,033

The following table shows the actual aggregate amortization expense for the quarters and six months ended June 30, 2015 and 2014, as well as the estimated aggregate amortization expense, based upon current levels of intangible assets, for the current fiscal year and each of the five succeeding fiscal years (in thousands):

For the quarter ended June 30, 2015	$	269
For the quarter ended June 30, 2014	331
For the six months ended June 30, 2015	537
For the six months ended June 30, 2014	662
For the year ending December 31, 2015	1,074
For the year ending December 31, 2016	835
For the year ending December 31, 2017	597
For the year ending December 31, 2018	429
For the year ending December 31, 2019	260
For the year ending December 31, 2020	92

The following table provides information for the changes in the carrying amount of goodwill (in thousands):

	Community		Consumer
	Banks		Finance	Total
Balance at December 31, 2013	$	173,031	1,613	174,644
Goodwill acquired	679		—	679
Impairment losses	—		—	—
Balance at December 31, 2014	173,710		1,613	175,323
Goodwill acquired	175		—	175
Impairment losses	—		—	—
Balance at June 30, 2015	$	173,885	1,613	175,498

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We are in the process of performing our annual goodwill impairment test as of June 30, 2015 and do not anticipate that goodwill will be impaired.  See the Overview of Critical Accounting Policies Involving Estimates section for a description of our testing procedures.

(6)Guarantees

We issue standby letters of credit in the normal course of business.  Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party.  Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party.  We are required to perform under a standby letter of credit when drawn upon by the guaranteed third party in the case of nonperformance by our customer.  The credit risk associated with standby letters of credit is essentially the same as that involved in extending loans to customers and is subject to normal loan underwriting procedures.  Collateral may be obtained based on management’s credit assessment of the customer.  At June 30, 2015, the maximum potential amount of future payments we could be required to make under these standby letters of credit was $25.0 million, of which $24.3 million is fully collateralized.  At June 30, 2015, we had a liability, which represents deferred income, of $1.2 million related to the standby letters of credit.  There are no recourse provisions that would enable us to recover any amounts from third parties.

(7)Earnings Per Share

Basic earnings per common share (EPS) is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period, without considering any dilutive items. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Stock options to purchase 1,711,080 shares of common stock with a weighted average exercise price of $12.64 per share were outstanding during the quarter ended June 30, 2015 but were not included in the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common shares of $12.32. Stock options to purchase 4,344,225 shares of common stock with a weighted average exercise price of $12.42 per share were outstanding during the six months ended June 30, 2015 but were not included in the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common shares of $12.11. All stock options outstanding during the quarter and six months ended June 30, 2014 were included in the computation of diluted earnings per share because the stock options’ exercise price was less than the average market price of the common shares of $13.72 and $14.09, respectively.

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The computation of basic and diluted earnings per share follows (in thousands, except share data and per share amounts):

	Quarter ended			Six months ended
	June 30,			June 30,
	2015		2014	2015	2014
Reported net income	$	15,305	12,674	31,475	27,285
Weighted average common shares outstanding	91,538,172		91,491,654	91,585,766	91,324,169
Dilutive potential shares due to effect of stock options	459,833		1,039,488	364,450	1,118,462
Total weighted average common shares and dilutive potential shares	91,998,005		92,531,142	91,950,216	92,442,631
Basic earnings per share:	$	0.17	0.14	0.34	0.30
Diluted earnings per share:	$	0.17	0.14	0.34	0.30

(8)Pension and Other Post-retirement Benefits

The following table sets forth the net periodic costs for the defined benefit pension plans and post retirement healthcare plans for the periods indicated (in thousands):

Components of net periodic benefit cost

	Quarter ended June 30,
	Pension benefits					Other post-retirement benefits
	2015			2014		2015	2014
Service cost	$	1,430		1,035		—	—
Interest cost	1,531			1,457		15	17
Expected return on plan assets	(2,593		)	(2,416	)	—	—
Amortization of prior service cost	(581		)	(581	)	—	—
Amortization of the net loss	925			357		15	12
Net periodic (benefit)/ cost	$	712		(148	)	30	29

Components of net periodic benefit cost

	Six months ended June 30,
	Pension benefits					Other post-retirement benefits
	2015			2014		2015	2014
Service cost	$	2,860		2,070		—	—
Interest cost	3,062			2,914		30	33
Expected return on plan assets	(5,186		)	(4,832	)	—	—
Amortization of prior service cost	(1,162		)	(1,162	)	—	—
Amortization of the net loss	1,850			713		30	24
Net periodic (benefit)/ cost	$	1,424		(297	)	60	57

We anticipate making a contribution to our defined benefit pension plan of $4.0 million to $8.0 million during the year ending December 31, 2015.

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(9)Disclosures About Fair Value of Financial Instruments

Fair value information about financial instruments, whether or not recognized in the consolidated statement of financial condition, is required to be disclosed. These requirements exclude certain financial instruments and all nonfinancial instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

Financial assets and liabilities recognized or disclosed at fair value on a recurring basis and certain financial assets and liabilities on a non-recurring basis are accounted for using a three-level hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable.  This hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3).  When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest level input that has a significant impact on fair value measurement is used.

Financial assets and liabilities are categorized based upon the following characteristics or inputs to the valuation techniques:

·Level 1 — Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in actively traded markets.  This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.

·Level 2 — Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets or liabilities that are actively traded.  Level 2 also includes pricing models in which the inputs are corroborated by market data, for example, matrix pricing.

·Level 3 — Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.  Level 3 inputs include the following:

·Quotes from brokers or other external sources that are not considered binding;

·Quotes from brokers or other external sources where it cannot be determined that market participants would in fact transact for the asset or liability at the quoted price;

·Quotes and other information from brokers or other external sources where the inputs are not deemed observable.

We are responsible for the valuation process and as part of this process may use data from outside sources in establishing fair value.  We perform due diligence to understand the inputs used or how the data was calculated or derived.  We also corroborate the reasonableness of external inputs in the valuation process.

The carrying amounts reported in the consolidated statement of financial condition approximate fair value for the following financial instruments: cash on hand, interest-earning deposits in other institutions, federal funds sold and other short-term investments, accrued interest receivable, accrued interest payable, and marketable securities available-for-sale.

Marketable Securities

Where available, market values are based on quoted market prices, dealer quotes, and prices obtained from independent pricing services.

Debt securities — available for sale - Generally, debt securities are valued using pricing for similar securities, recently executed transactions and other pricing models utilizing observable inputs.  The valuation for most debt securities is classified as Level 2.  Securities within Level 2 include corporate bonds,

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municipal bonds, mortgage-backed securities and US government obligations.  Certain corporate debt securities do not have an active market and as such the broker pricing received uses alternative methods. The fair value of these corporate debt securities is determined by using a discounted cash flow model using market assumptions, which generally include cash flow, collateral and other market assumptions.  As such, these securities are included herein as Level 3 assets.

Equity securities — available for sale - Level 1 securities include publicly traded securities valued using quoted market prices.  We consider the financial condition of the issuer to determine if the securities have indicators of impairment.

Debt securities — held to maturity - The fair value of debt securities held to maturity is determined in the same manner as debt securities available for sale.

Loans Receivable

Loans with comparable characteristics including collateral and re-pricing structures are segregated for valuation purposes. Characteristics include remaining term, coupon interest, and estimated prepayment speeds. Delinquent loans are separately evaluated given the impact delinquency has on the projected future cash flow of the loan and the approximate discount or market rate.  Each loan pool is separately valued utilizing a discounted cash flow analysis. Projected monthly cash flows are discounted to present value using a market rate for comparable loans, which is not considered an exit price.

Federal Home Loan Bank of Pittsburgh (“FHLB”) Stock

Due to the restrictions placed on the transferability of FHLB stock it is not practical to determine the fair value.

Deposit Liabilities

The estimated fair value of deposits with no stated maturity, which includes demand deposits, money market, and other savings accounts, is the amount payable on demand. Although market premiums paid for depository institutions reflect an additional value for these low-cost deposits, adjusting fair value for any value expected to be derived from retaining those deposits for a future period of time or from the benefit that results from the ability to fund interest-earning assets with these deposit liabilities is prohibited. The fair value estimates of deposit liabilities do not include the benefit that results from the low-cost funding provided by these deposits compared to the cost of borrowing funds in the market. Fair values for time deposits are estimated using a discounted cash flow calculation that applies contractual cost currently being offered in the existing portfolio to current market rates being offered locally for deposits of similar remaining maturities. The valuation adjustment for the portfolio consists of the present value of the difference of these two cash flows, discounted at the assumed market rate of the corresponding maturity.

Borrowed Funds

Fixed rate advances are valued by comparing their contractual cost to the prevailing market cost.  The carrying amount of collateralized borrowings approximates the fair value.

Junior Subordinated Debentures

The fair value of junior subordinated debentures is calculated using the discounted cash flows at the prevailing rate of interest.

Cash flow hedges — Interest rate swap agreements (“swaps”)

The fair value of the swaps is the amount we would expect to pay to terminate the agreements and is based upon the present value of the expected future cash flows using the LIBOR swap curve, the basis for the underlying interest rate.

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Off-Balance Sheet Financial Instruments

These financial instruments generally are not sold or traded, and estimated fair values are not readily available. However, the fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements. Commitments to extend credit are generally short-term in nature and, if drawn upon, are issued under current market terms. At June 30, 2015 and December 31, 2014, there was no significant unrealized appreciation or depreciation on these financial instruments.

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the consolidated statement of financial condition at June 30, 2015 (in thousands):

	Carrying		Estimated
	amount		fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	292,948	292,948	292,948	—	—
Securities available-for-sale	861,157		861,157	1,932	850,002	9,223
Securities held-to-maturity	61,464		62,957	—	62,957	—
Loans receivable, net	6,065,600		6,389,381	—	—	6,389,381
Accrued interest receivable	18,682		18,682	18,682	—	—
FHLB Stock	38,066		38,066	—	—	—
Total financial assets	$	7,337,917	7,663,191	313,562	912,959	6,398,604
Financial liabilities:
Savings and checking deposits	$	4,296,954	4,296,954	4,296,954	—	—
Time deposits	1,397,528		1,413,605	—	—	1,413,605
Borrowed funds	899,056		925,318	138,687	—	786,631
Junior subordinated debentures	103,094		108,627	—	—	108,627
Cash flow hedges - swaps	5,454		5,454	—	5,454	—
Accrued interest payable	1,302		1,302	1,302	—	—
Total financial liabilities	$	6,703,388	6,751,260	4,436,943	5,454	2,308,863

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The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the consolidated statement of financial condition at December 31, 2014 (in thousands):

	Carrying		Estimated
	amount		fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	240,706	240,706	240,706	—	—
Securities available-for-sale	912,371		912,371	3,157	898,617	10,597
Securities held-to-maturity	103,695		106,292	—	106,292	—
Loans receivable, net	5,922,373		6,240,079	—	—	6,240,079
Accrued interest receivable	18,623		18,623	18,623	—	—
FHLB Stock	33,293		33,293	—	—	—
Total financial assets	$	7,231,061	7,551,364	262,486	1,004,909	6,250,676
Financial liabilities:
Savings and checking accounts	$	4,154,228	4,154,228	4,154,228	—	—
Time deposits	1,478,314		1,498,539	—	—	1,498,539
Borrowed funds	888,109		919,612	162,714	—	756,898
Junior subordinated debentures	103,094		109,435	—	—	109,435
Cash flow hedges - swaps	6,273		6,273	—	6,273	—
Accrued interest payable	936		936	936	—	—
Total financial liabilities	$	6,630,954	6,689,023	4,317,878	6,273	2,364,872

Fair value estimates are made at a point-in-time, based on relevant market data and information about the instrument. The methods and assumptions detailed above were used in estimating the fair value of financial instruments at both June 30, 2015 and December 31, 2014.  There were no transfers of financial instruments between Level 1 and Level 2 during the six months ended June 30, 2015.

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The following table represents assets and liabilities measured at fair value on a recurring basis at June 30, 2015 (in thousands):

						Total
						assets at
	Level 1		Level 2		Level 3	fair value
Equity securities	$	1,932	—		—	1,932
Debt securities:
U.S. government and agencies	—		21		—	21
Government sponsored enterprises	—		344,964		—	344,964
States and political subdivisions	—		62,949		—	62,949
Corporate	—		9,707		9,223	18,930
Total debt securities	—		417,641		9,223	426,864
Residential mortgage-backed securities:
GNMA	—		26,977		—	26,977
FNMA	—		66,057		—	66,057
FHLMC	—		37,566		—	37,566
Non-agency	—		619		—	619
Collateralized mortgage obligations:
GNMA	—		6,832		—	6,832
FNMA	—		124,459		—	124,459
FHLMC	—		157,772		—	157,772
SBA	—		8,966		—	8,966
Non-agency	—		3,113		—	3,113
Total mortgage-backed securities	—		432,361		—	432,361
Interest rate swaps	—		(5,454	)	—	(5,454	)
Total assets and liabilities	$	1,932	844,548		9,223	855,703

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The following table represents assets and liabilities measured at fair value on a recurring basis at December 31, 2014 (in thousands):

						Total
						assets at
	Level 1		Level 2		Level 3	fair value
Equity securities	$	3,157	—		—	3,157
Debt securities:
U.S. government and agencies	—		25		—	25
Government sponsored enterprises	—		333,505		—	333,505
States and political subdivisions	—		70,145		—	70,145
Corporate	—		9,830		10,597	20,427
Total debt securities	—		413,505		10,597	424,102
Residential mortgage-backed securities:
GNMA	—		29,216		—	29,216
FNMA	—		73,497		—	73,497
FHLMC	—		42,119		—	42,119
Non-agency	—		643		—	643
Collateralized mortgage obligations:
GNMA	—		8,329		—	8,329
FNMA	—		139,150		—	139,150
FHLMC			178,698			178,698
SBA	—		10,052		—	10,052
Non-agency	—		3,408		—	3,408
Total mortgage-backed securities	—		485,112		—	485,112
Interest rate swaps	—		(6,273	)	—	(6,273	)
Total assets and liabilities	$	3,157	892,344		10,597	906,098

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The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated (in thousands):

	Quarter ended				Six months ended
	June 30, 2015			June 30, 2014	June 30, 2015		June 30, 2014
Beginning balance	$	10,306		12,391	10,597		12,251
Total net realized investment gains/ (losses) and net change in unrealized appreciation/ (depreciation):
Included in net income as OTTI	—			—	—		—
Included in other comprehensive income	(1,083		)	152	(1,374	)	292
Purchases	—			—	—		—
Sales	—			—	—		—
Transfers in to Level 3	—			—	—		—
Transfers out of Level 3	—			—	—		—
Ending balance	$	9,223		12,543	9,223		12,543

Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as loans measured for impairment and real estate owned.  The following table represents the fair value measurement for nonrecurring assets at June 30, 2015 (in thousands):

					Total
					assets at
	Level 1		Level 2	Level 3	fair value
Loans measured for impairment	$	—	—	43,254	43,254
Real estate owned	—		—	13,864	13,864
Total assets	$	—	—	57,118	57,118

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Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as loans measured for impairment and real estate owned.  The following table represents the fair value measurement for nonrecurring assets at December 31, 2014 (in thousands):

					Total
					assets at
	Level 1		Level 2	Level 3	fair value
Loans measured for impairment	$	—	—	54,729	54,729
Real estate owned	—		—	16,759	16,759
Total assets	$	—	—	71,488	71,488

Impaired loans — A loan is considered to be impaired as described in the Overview of Critical Accounting Policies Involving Estimates, Allowance for Loan Losses section.  We classify loans individually evaluated for impairment that require a specific or TDR reserve as nonrecurring Level 3.

Real Estate Owned — Real estate owned is comprised of property acquired through foreclosure or voluntarily conveyed by delinquent borrowers.  These assets are recorded on the date acquired at the lower of the related loan balance or fair value, less estimated disposition costs, with the fair value being determined by appraisal.  Subsequently, foreclosed assets are valued at the lower of the amount recorded at acquisition date or fair value, less estimated disposition costs.  We classify all real estate owned as nonrecurring Level 3.

The table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at June 30, 2015 (dollar amounts in thousands):

	Fair value		Valuation techniques	Significant unobservable inputs	Range (weighted average)
Debt securities	$	9,223	Discounted cash flow	Discount margin Default rates Prepayment speeds	0.35% to 2.10% (0.69%) 1.00% 1.00% annually
Loans measured for impairment	43,254		Appraisal value (1)	Estimated cost to sell	10%
			Discounted cash flow	Discount rate	3.75% to 6.50% (5.13%)
Real estate owned	13,864		Appraisal value (1)	Estimated cost to sell	10%

(1)  Fair value is generally determined through independent appraisals of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.

The significant unobservable inputs used in the fair value measurement of our debt securities are discount margins, default rates and prepayment speeds.  Significant increases in any of those rates would result in a significantly lower fair value measurement.

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(10)Guaranteed Preferred Beneficial Interests in the Company’s Junior Subordinated Deferrable Interest Debentures (Trust Preferred Securities) and Interest Rate Swaps

We have two statutory business trusts: Northwest Bancorp Capital Trust III, a Delaware statutory business trust and Northwest Bancorp Statutory Trust IV, a Connecticut statutory business trust (“Trusts”).  These trusts exist solely to issue preferred securities to third parties for cash, issue common securities to the Company in exchange for capitalization of the Trusts, invest the proceeds from the sale of the trust securities in an equivalent amount of debentures of the Company, and engage in other activities that are incidental to those previously listed.

Northwest Bancorp Capital Trust III (Trust III) issued 50,000 cumulative trust preferred securities in a private transaction to a pooled investment vehicle on December 5, 2006 (liquidation value of $1,000 per preferred security or $50,000,000) with a stated maturity of December 30, 2035.  These securities carry a floating interest rate, which is reset quarterly, equal to three-month LIBOR plus 1.38%.  Northwest Bancorp Statutory Trust IV (Trust IV) issued 50,000 cumulative trust preferred securities in a private transaction to a pooled investment vehicle on December 15, 2006 (liquidation value of $1,000 per preferred security or $50,000,000) with a stated maturity of December 15, 2035.  These securities carry a floating interest rate, which is reset quarterly, equal to three-month LIBOR plus 1.38%.  The Trusts have invested the proceeds of the offerings in junior subordinated deferrable interest debentures issued by the Company.  The structure of these debentures mirrors the structure of the trust-preferred securities.  Trust III holds $51,547,000 of the Company’s junior subordinated debentures and Trust IV holds $51,547,000 of the Company’s junior subordinated debentures.  These subordinated debentures are the sole assets of the Trusts.  Cash distri-butions on the trust securities are made on a quarterly basis to the extent interest on the debentures is received by the Trusts.  We have the right to defer payment of interest on the subordinated debentures at any time, or from time-to-time, for periods not exceeding five years.  If interest payments on the subordinated debentures are deferred, the distributions on the trust preferred securities are also deferred.  Interest on the subordinated debentures and distributions on the trust securities is cumulative.  To date, there have been no interest deferrals.  Our obligation constitutes a full, irrevocable, and unconditional guarantee on a subordinated basis of the obligations of the trust under the preferred securities.

We are currently a counterparty to three interest rate swap agreements (swaps), designating the swaps as cash flow hedges.  The swaps are intended to protect against the variability of cash flows associated with Trust III and Trust IV.  The first swap modifies the re-pricing characteristics of Trust III, wherein for a ten year period expiring in September 2018, the Company receives interest of three-month LIBOR from a counterparty and pays a fixed rate of 4.61% to the same counterparty calculated on a notional amount of $25.0 million.  The other two swaps modify the re-pricing characteristics of Trust IV, wherein (i) for a seven year period expiring in December 2015, the Company receives interest of three-month LIBOR from a counterparty and pays a fixed rate of 3.85% to the same counterparty calculated on a notional amount of $25.0 million and (ii) for a ten year period expiring in December 2018, the Company receives interest of three-month LIBOR from a counterparty and pays a fixed rate of 4.09% to the same counterparty calculated on a notional amount of $25.0 million.  The swap agreements were entered into with a counterparty that met our credit standards and the agreements contain collateral provisions protecting the at-risk party.  We believe that the credit risk inherent in the contracts is not significant.  At June 30, 2015, $6.1 million of cash was pledged as collateral to the counterparty.

At June 30, 2015, the fair value of the swap agreements was $(5.5) million and was the amount we would have expected to pay if the contracts were terminated.  There was no material hedge ineffectiveness for these swaps.

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The following table shows liability derivatives, included in other liabilities, at June 30, 2015 and December 31, 2014 (in thousands):

	June 30,		December 31,
	2015		2014
Fair value	$	5,454	6,273
Notional amount	75,000		75,000
Collateral posted	6,105		6,805

(11)Legal Proceedings

We establish accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated.  As of June 30, 2015 we have not accrued for any legal proceedings based on our analysis of currently available information which is subject to significant judgment and a variety of assumptions and uncertainties.  Any such accruals are adjusted thereafter as appropriate to reflect changes in circumstances.  Due to the inherent subjectivity of assessments and unpredictability of outcomes of legal proceedings, any amounts accrued may not represent the ultimate loss to us from legal proceedings.

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(12)Changes in Accumulated Other Comprehensive Income

The following table shows the changes in accumulated other comprehensive income by component for the periods indicated (in thousands):

	For the quarter ended June 30, 2015
	Unrealized gains and (losses) on securities available- for-sale			Change in fair value of interest rate swaps		Change in defined benefit pension plans		Total
Balance as of March 31, 2015	$	6,345		(4,034	)	(23,534	)	(21,223	)
Other comprehensive income before reclassification adjustments	(1,788		)	488		—		(1,300	)
Amounts reclassified from accumulated other comprehensive income (1), (2)	(279		)	—		219		(60	)
Net other comprehensive loss	(2,067		)	488		219		(1,360	)
Balance as of June 30, 2015	$	4,278		(3,546	)	(23,315	)	(22,583	)

	For the quarter ended June 30, 2014
	Unrealized gains and (losses) on securities available- for-sale			Change in fair value of interest rate swaps		Change in defined benefit pension plans		Total
Balance as of March 31, 2014	$	459		(4,973	)	(3,581	)	(8,095	)
Other comprehensive income before reclassification adjustments	3,123			98		—		3,221
Amounts reclassified from accumulated other comprehensive income (3), (4)	(204		)	—		(138	)	(342	)
Net other comprehensive income	2,919			98		(138	)	2,879
Balance as of June 30, 2014	$	3,378		(4,875	)	(3,719	)	(5,216	)

(1)Consists of realized gains on securities (gain on sales of investments, net) of $458, net of tax (income tax expense) of $(179).

(2)Consists of amortization of prior service cost (compensation and employee benefits) of $581 and amortization of net loss (compensation and employee benefits) of $(940), net of tax (income tax expense) of $140.  See note 8.

(3)Consists of realized gains on securities (gain on sales of investments, net) of $334, net of tax (income tax expense) of $(130).

(4)Consists of amortization of prior service cost (compensation and employee benefits) of $581 and amortization of net loss (compensation and employee benefits) of $(369), net of tax (income tax expense) of $(74).  See note 8.

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The following table shows the changes in accumulated other comprehensive income by component for the periods indicated (in thousands):

	For the six months ended June 30, 2015
	Unrealized gains and (losses) on securities available- for-sale			Change in fair value of interest rate swaps		Change in defined benefit pension plans		Total
Balance as of December 31, 2014	$	3,461		(4,078	)	(23,753	)	(24,370	)
Other comprehensive income before reclassification adjustments	1,164			532		—		1,696
Amounts reclassified from accumulated other comprehensive income (1), (2)	(347		)	—		438		91
Net other comprehensive income	817			532		438		1,787
Balance as of June 30, 2015	$	4,278		(3,546	)	(23,315	)	(22,583	)

	For the six months ended June 30, 2014
	Unrealized gains and (losses) on securities available- for-sale			Change in fair value of interest rate swaps		Change in defined benefit pension plans		Total
Balance as of December 31, 2013	$	(3,233	)	(5,224	)	(3,443	)	(11,900	)
Other comprehensive income before reclassification adjustments	8,719			349		—		9,068
Amounts reclassified from accumulated other comprehensive income (3), (4)	(2,108		)	—		(276	)	(2,384	)
Net other comprehensive income	6,611			349		(276	)	6,684
Balance as of June 30, 2014	$	3,378		(4,875	)	(3,719	)	(5,216	)

(1)Consists of realized gains on securities (gain on sales of investments, net) of $569, net of tax (income tax expense) of $(222).

(2)Consists of amortization of prior service cost (compensation and employee benefits) of $1,162 and amortization of net loss (compensation and employee benefits) of $(1,880), net of tax (income tax expense) of $280. See note 8.

(3)Consists of realized gains on securities (gain on sales of investments, net) of $3,456, net of tax (income tax expense) of $(1,348).

(4)Consists of amortization of prior service cost (compensation and employee benefits) of $1,162 and amortization of net loss (compensation and employee benefits) of $(737), net of tax (income tax expense) of $(149). See note 8.

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(13)Other Items

As was previously announced on December 15, 2014 the Company entered into an Agreement and Plan of Merger (“Merger Agreement”) by and between the Company and LNB Bancorp, Inc. (“LNB”).  Pursuant to the Merger Agreement, LNB will merge with and into the Company, with the Company as the surviving entity. Immediately thereafter, The Lorain National Bank (“Lorain National Bank”), the wholly owned subsidiary of LNB, will merge with and into Northwest Bank, the wholly owned subsidiary of the Company, with Northwest Bank as the surviving entity.

Under the terms of the Merger Agreement, 50% of LNB’s common shares will be converted into Company common stock and the remaining 50% will be exchanged for cash.  LNB’s shareholders will have the option to elect to receive either 1.461 shares of the Company’s common stock or $18.70 in cash for each LNB common share, subject to proration to ensure that, in the aggregate, 50% of LNB’s common shares will be converted into Company stock.

The transaction has been approved by the Boards of Directors of the Company and LNB as well as LNB’s shareholders and both the FDIC and the Pennsylvania Department of Banking. Additionally, the Federal Reserve Bank has issued a non-objection to a waiver request from the obligation to file an application. Completion of the transaction is subject to customary closing conditions. We anticipate both the closing and data conversion to be completed on the weekend of August 14, 2015.

As of June 30, 2015, LNB had total assets of $1.238 billion (unaudited) and net income of $2.3 million (unaudited) and $4.1 (unaudited) for the quarter and six months ended June 30, 2015, respectively.

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements:

In addition to historical information, this document may contain certain forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995.  These forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.  Readers are cautioned not to place undue reliance on these forward-looking statements, as they reflect management’s analysis only as of the date of this report.  We have no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this report.

Important factors that might cause such a difference include, but are not limited to:

·changes in laws, government regulations or policies affecting financial institutions, including regulatory fees and capital requirements;

·general economic conditions, either nationally or in our market areas, that are different than expected;

·competition among other financial institutions and non-depository entities;

·inflation and changes in the interest rate environment that impact our margins or the fair value of financial instruments;

·changes in the securities markets;

·our ability to enter new markets successfully, capitalize on growth opportunities and our ability to successfully integrate acquired entities, if any;

·changes in consumer spending, borrowing and savings habits;

·our ability to continue to increase and manage our business and personal loans;

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·possible impairments of securities held by us, including those issued by government entities and government sponsored enterprises;

·the impact of the economy on our loan portfolio (including cash flow and collateral values), investment portfolio, customers and capital market activities;

·the impact of the current governmental effort to restructure the U.S. financial and regulatory system;

·changes in the financial performance and/or condition of our borrowers; and

·the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Securities and Exchange Commission, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters.

Overview of Critical Accounting Policies Involving Estimates

Please refer to Note 1 of the Notes to Consolidated Financial Statements in Item 8 of Part II of our 2014 Annual Report on Form 10-K.

Executive Summary and Comparison of Financial Condition

Total assets at June 30, 2015 were $7.865 billion, an increase of $89.5 million, or 1.2%, from $7.775 billion at December 31, 2014.  This increase in assets was due to increases in net loans receivable of $143.2 million and interest-earning deposits in other financial institutions of $55.6 million, which were partially offset by a decrease in marketable securities of $93.4 million. The net increase in total assets was funded by increases in total deposits and borrowed funds of $61.9 million and $10.9 million, respectively.

Total loans receivable increased by $134.8 million, or 2.2%, to $6.125 billion at June 30, 2015, from $5.990 billion at December 31, 2014.  Loans funded during the six months ended June 30, 2015, of $996.5 million exceeded loan maturities, principal repayments and mortgage loan sales of $851.0 million. Our business banking loan portfolio increased by $59.7 million, or 2.8%, to $2.219 billion at June 30, 2015 from $2.160 billion at December 31, 2014, as we continue to emphasize the origination of commercial and commercial real estate loans. Our personal banking loan portfolio increased by $75.1 million, or 2.0%, to $3.905 billion at June 30, 2015 from $3.830 billion at December 31, 2014.  This increase is primarily attributable to an increase in residential mortgage loans of $75.7 million as a result of the success of our wholesale lending division and improvements made to the application and underwriting processes which we implemented in the second half of last year.

Total deposits increased by $61.9 million, or 1.1%, to $5.694 billion at June 30, 2015 from $5.633 billion at December 31, 2014. Noninterest-bearing demand deposits increased by $71.1 million, or 8.0%, to $962.3 million at June 30, 2015 from $891.2 million at December 31, 2014. Interest-bearing demand deposits increased by $53.8 million, or 6.2%, to $928.4 million at June 30, 2015 from $874.6 million at December 31, 2014.  Savings deposits increased by $53.7 million, or 4.4%, to $1.263 billion at June 30, 2015 from $1.209 billion at December 31, 2014.  Partially offsetting these increases was a decrease in time deposits of $80.8 million, or 5.5%, to $1.398 billion at June 30, 2015 from $1.478 billion at December 31, 2014.  Additionally, money market deposit accounts decreased by $35.9 million, or 3.0%, to $1.143 billion at June 30, 2015 from $1.179 billion at December 31, 2014.  We believe the increase in more liquid deposit accounts is due primarily to customers’ continued reluctance to lock in time deposits at these historically low rates.  In addition, our checking account marketing campaign has been successful in attracting new customers.

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Borrowed funds increased by $11.0 million, or 1.2%, to $899.1 million at June 30, 2015, from $888.1 million at December 31, 2014. During the first quarter of 2015 we borrowed $85.0 million from the FHLB with an average maturity of 8.2 years and an average interest rate of 2.40%. Our intention was to lock in long-term, low-cost borrowings before market interest rates increase in order to fund the FHLB advances that mature in 2015. Partially offsetting this increase was a decrease of $24.0 million in collateralized borrowings and the maturities of $50.0 million of FHLB advances.

Total shareholders’ equity at June 30, 2015 was $1.068 billion, or $11.28 per share, an increase of $5.7 million, or 0.5%, from $1.063 billion, or $11.22 per share, at December 31, 2014.  This increase in equity was the result of net income during the six months ended June 30, 2015 of $31.5 million and a decrease in accumulated other comprehensive loss of $1.8 million due to an improvement in the net unrealized gain of the investment securities portfolio. Partially offsetting these increases was the payment of cash dividends of $25.9 million and the repurchase of 497,800 shares of common stock for $6.0 million during the six months ended June 30, 2015.

Financial institutions and their holding companies are subject to various regulatory capital requirements.  Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct material effect on a company’s financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, financial institutions must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting guidelines. Capital amounts and classifications are also subject to qualitative judgments made by the regulators about components, risk-weighting and other factors.

In July 2013, the FDIC and the other federal regulatory agencies issued a final rule that revised their leverage and risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act.  Among other things, the rule establishes a new Common Equity Tier 1 (“CET1”) minimum capital requirement (4.5% of risk-weighted assets) and increases the minimum Tier 1 capital to risk-based assets requirement (from 4% to 6% of risk-weighted assets). The rule limits an organization’s capital distributions and certain discretionary bonus payments if the organization does not hold a “capital conservation buffer” consisting of 2.5% of CET1 capital to risk-weighted assets in addition to the amount necessary to meet its minimum risk-based capital requirements.

The final rule became effective for Northwest on January 1, 2015.  The capital conservation buffer requirement will be phased in beginning January 1, 2016 and ending January 1, 2019, when the full capital conservation buffer requirement will be effective. The final rule also officially implements these consolidated capital requirements for savings and loan holding companies, such as the Company, effective January 1, 2015.

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Quantitative measures, established by regulation to ensure capital adequacy, require financial institutions to maintain minimum amounts and ratios (set forth in the table below) of Total, CET1 and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average assets (as defined).  Capital ratios are presented in the tables below.  Dollar amounts in the accompanying tables are in thousands.

	At June 30, 2015
					Minimum capital			Well capitalized
	Actual				requirements			requirements
	Amount		Ratio		Amount	Ratio		Amount	Ratio
Total capital (to risk weighted assts)
Northwest Bancshares, Inc.	$	1,082,600	20.28	%	427,091	8.00	%	533,864	10.00	%
Northwest Bank	861,704		16.18	%	426,039	8.00	%	532,549	10.00	%
Tier 1 capital (to risk weighted assets)
Northwest Bancshares, Inc.	1,023,404		19.17	%	320,318	6.00	%	427,091	8.00	%
Northwest Bank	802,644		15.07	%	319,529	6.00	%	426,039	8.00	%
CET1 capital (to risk weighted assets)
Northwest Bancshares, Inc.	923,404		17.30	%	240,239	4.50	%	347,011	6.50	%
Northwest Bank	802,644		15.07	%	239,647	4.50	%	346,157	6.50	%
Tier 1 capital (leverage) (to average assets)
Northwest Bancshares, Inc.	1,023,404		13.16	%	310,981	4.00	%	388,726	5.00	%
Northwest Bank	802,644		10.34	%	310,442	4.00	%	388,053	5.00	%

	At December 31, 2014
					Minimum capital			Well capitalized
	Actual				requirements (1)			requirements (1)
	Amount		Ratio		Amount	Ratio		Amount	Ratio
Total capital (to risk weighted assts)
Northwest Bancshares, Inc.	$	1,062,802	20.29	%	—	—		—	—
Northwest Bank	945,652		18.09	%	418,104	8.00	%	522,629	10.00	%
Tier I capital (to risk weighted assets)
Northwest Bancshares, Inc.	997,049		19.04	%	—	—		—	—
Northwest Bank	880,290		16.84	%	209,052	4.00	%	313,578	6.00	%
Tier I capital (leverage) (to average assets)
Northwest Bancshares, Inc.	997,049		12.80	%	—	—		—	—
Northwest Bank	880,290		11.55	%	304,883	4.00	%	381,104	5.00	%

(1) The Federal Reserve did not have formal capital requirements established for savings and loan holding companies at December 31, 2014.

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The following table shows the Basel III regulatory capital levels that must be maintained to avoid limitations on capital distributions and discretionary bonus payments for the periods indicated:

	Basel III Regulatory Capital Requirements
	January 1,		January 1,		January 1,		January 1,
	2016		2017		2018		2019
Common equity tier 1 ratio plus capital conservation buffer	5.125	%	5.75	%	6.375	%	7.00	%
Tier 1 risk-based capital ratio plus capital conservation buffer	6.625	%	7.25	%	7.875	%	8.50	%
Total risk-based capital ratio plus capital conservation buffer	8.625	%	9.25	%	9.875	%	10.50	%

We are required to maintain a sufficient level of liquid assets, as determined by management and reviewed for adequacy by the FDIC and the Pennsylvania Department of Banking during their regular examinations. Northwest monitors its liquidity position primarily using the ratio of unencumbered available-for-sale liquid assets as a percentage of deposits and borrowings (“liquidity ratio”).  Northwest’s liquidity ratio at June 30, 2015 was 11.6%. We adjust liquidity levels in order to meet funding needs for deposit outflows, payment of real estate taxes and insurance on mortgage loan escrow accounts, repayment of borrowings and loan commitments.  At June 30, 2015 Northwest had $1.786 billion of additional borrowing capacity available with the FHLB, including $150.0 million on an overnight line of credit, as well as $210.4 million of borrowing capacity available with the Federal Reserve Bank and $80.0 million with two correspondent banks.

We paid $12.9 million and $104.6 million in cash dividends during the quarters ended June 30, 2015 and 2014, respectively, and $25.9 million and $125.8 million for the six months ended June 30, 2015 and 2014, respectively.  The common stock dividend payout ratio (dividends declared per share divided by net income per share) was 82.4% and 807.1% for the quarters ended June 30, 2015 and 2014, respectively, on regular dividends of $0.14 per share for the quarter ended June 30, 2015 and on regular dividends of $0.13 per share and a special dividend of $1.00 per share for the quarter ended June 30, 2014. The common stock dividend payout ratio was 82.4% and 453.3% for the six months ended June 30, 2015 and 2014, respectively, on regular dividends of $0.28 per share for the six months ended June 30, 2015 and on regular dividends of $0.26 per share and special dividends of $1.10 per share for the six months ended June 30, 2014.  On July 15, 2015, the Board of Directors declared a dividend of $0.14 per share payable on August 13, 2015 to shareholders of record as of July 30, 2015.  This represents the 83rd consecutive quarter we have paid a cash dividend.

Nonperforming Assets

The following table sets forth information with respect to nonperforming assets.  Nonaccrual loans are those loans on which the accrual of interest has ceased.  Generally, when a loan is 90 days past due, we fully reverse all accrued interest thereon and cease to accrue interest thereafter.  Exceptions are made for loans that have contractually matured, are in the process of being modified to extend the maturity date and are otherwise current as to principal and interest, and well secured loans that are in process of collection.  Loans may also be placed on nonaccrual before they reach 90 days past due if conditions exist that call into question our ability to collect all contractual interest.  Other nonperforming assets represent property acquired through foreclosure or repossession.  Foreclosed property is carried at the lower of its fair value less estimated costs to sell, or the principal balance of the related loan.

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	June 30,			December 31,
	2015			2014
	(Dollars in thousands)
Loans 90 days or more delinquent:
Residential mortgage loans	$	16,125		$	17,696
Home equity loans	4,616			6,606
Other consumer loans	2,199			2,450
Commercial real estate loans	12,673			10,215
Commercial loans	1,858			4,359
Total loans 90 days or more delinquent	$	37,471		$	41,326
Total real estate owned (REO)	13,864			16,759
Total loans 90 days or more delinquent and REO	51,335			58,085
Total loans 90 days or more delinquent to net loans receivable	0.62		%	0.70		%
Total loans 90 days or more delinquent and REO to total assets	0.65		%	0.75		%
Nonperforming assets:
Nonaccrual loans - loans 90 days or more delinquent	$	37,471		41,326
Nonaccrual loans - loans less than 90 days delinquent	20,525			38,482
Loans 90 days or more past maturity and still accruing	385			235
Total nonperforming loans	58,381			80,043
Total nonperforming assets	$	72,245		96,802
Nonaccrual troubled debt restructured loans *	$	15,443		24,459
Accruing troubled debt restructured loans	40,741			37,329
Total troubled debt restructured loans	$	56,184		61,788

* Included in nonaccurual loans above.

A loan is considered to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement including both contractual principal and interest payments.  The amount of impairment is required to be measured using one of three methods: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of collateral if the loan is collateral dependent.  If the measure of the impaired loan is less than the recorded investment in the loan, a specific allowance is allocated for the impairment. Impaired loans at June 30, 2015 and December 31, 2014 were $115.5 million and $137.2 million, respectively.

Allowance for Loan Losses

Our Board of Directors has adopted an “Allowance for Loan and Lease Losses” (“ALL”) policy designed to provide management with a systematic methodology for determining and documenting the ALL each reporting period.  This methodology was developed to provide a consistent process and review procedure to ensure that the ALL is in conformity with GAAP, our policies and procedures and other supervisory and regulatory guidelines.

On an ongoing basis, the Credit Administration department, as well as loan officers, branch managers and department heads, review and monitor the loan portfolio for problem loans.  This portfolio monitoring includes a review of the monthly delinquency reports as well as historical comparisons and trend analysis.  In addition, a meeting is held every quarter with each region to monitor the performance and status of loans on an internal watch list.  On an on-going basis the loan officer in conjunction with a portfolio manager grades or classifies problem loans or potential problem loans based upon their knowledge of the lending relationship and other information previously accumulated.  This rating is also reviewed independently by our Loan Review department on a periodic basis.  Our loan grading system for

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problem loans is consistent with industry regulatory guidelines which classify loans as “substandard”, “doubtful” or “loss.”  Loans that do not expose us to risk sufficient to warrant classification in one of the previous categories, but which possess some weaknesses, are designated as “special mention”.  A “substandard” loan is any loan that is 90 days or more contractually delinquent or is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any.  Loans classified as “doubtful” have all the weaknesses inherent in those classified as “substandard” with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions or values, highly questionable and improbable.  Loans classified as “loss” are considered uncollectible so that their continuance as assets without the establishment of a specific loss allowance is not warranted.

Credit relationships that have been classified as substandard or doubtful and are greater than or equal to $1.0 million are reviewed by the Credit Administration department for possible impairment.  A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement, including both contractual principal and interest payments.

If an individual loan is deemed to be impaired, the Credit Administration department determines the proper measure of impairment for each loan based on one of three methods: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent, less costs of sale or disposal.  If the measurement of the impaired loan is more or less than the recorded investment in the loan, the Credit Administration department adjusts the specific allowance associated with that individual loan accordingly.

If a substandard or doubtful loan is not considered individually for impairment, it is grouped with other loans that possess common characteristics for impairment evaluation and analysis.  This segmentation is accomplished by grouping loans of similar product types, risk characteristics and industry concentration into homogeneous pools.  Historical loss ratios are analyzed and adjusted based on delinquency trends as well as the current economic, political, regulatory and interest rate environment and used to estimate the current measure of impairment.

The individual impairment measures along with the estimated loss for each homogeneous pool are consolidated into one summary document.  This summary schedule along with the support documentation used to establish this schedule is presented to management’s Credit Committee on a quarterly basis.  The Credit Committee reviews the processes and documentation presented, reviews the concentration of credit by industry and customer, lending products and activity, competition and collateral values, as well as economic conditions in general and in each of our market areas.  Based on this review and discussion, the appropriate amount of ALL is estimated and any adjustments to reconcile the actual ALL with this estimate are determined.  In addition, the Credit Committee considers if any changes to the methodology are needed.  The Credit Committee also reviews and discusses delinquency trends, nonperforming asset amounts and ALL levels and ratios compared to our peer group as well as state and national statistics.  Similarly, following the Credit Committee’s review and approval, a review is performed by the Risk Management Committee of the Board of Directors on a quarterly basis.

In addition to the reviews by management’s Credit Committee and the Board of Directors’ Risk Management Committee, regulators from either the FDIC or the Pennsylvania Department of Banking perform an extensive review on an annual basis for the adequacy of the ALL and its conformity with regulatory guidelines and pronouncements.  Any recommendations or enhancements from these

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independent parties are considered by management and the Credit Committee and implemented accordingly.

We acknowledge that this is a dynamic process and consists of factors, many of which are external and out of our control that can change often, rapidly and substantially.  The adequacy of the ALL is based upon estimates using all the information previously discussed as well as current and known circumstances and events.  There is no assurance that actual portfolio losses will not be substantially different than those that were estimated.

We utilize a consistent methodology each period when analyzing the adequacy of the allowance for loan losses and the related provision for loan losses.  As part of the analysis as of June 30, 2015, we considered the economic conditions in our markets, such as unemployment and bankruptcy levels as well as changes in estimates of real estate collateral values.  In addition, we considered the overall trends in asset quality, specific reserves already established for criticized loans, historical loss rates and collateral valuations.  As a result of this analysis, the allowance for loan losses decreased by $8.4 million, or 12.5%, to $59.1 million, or 0.96% of total loans, at June 30, 2015 from $67.5 million, or 1.13% of total loans, at December 31, 2014.  This decrease is primarily attributable to the continued improvement in overall asset quality as classified loans and non-accrual loans delinquent 90 days or more decreased by $25.9 million and $3.9 million, respectively, compared to December 31, 2014. Additionally, we have enhanced the procedures for determining environmental reserves and the loss emergence period eliminating the unallocated portion of the allowance for loan losses. This resulted in the allocation of previously unallocated reserves.

We also consider how the levels of non-accrual loans and historical charge-offs have influenced the required amount of allowance for loan losses.  Nonaccrual loans of $58.0 million or 0.95% of total loans receivable, at June 30, 2015 decreased by $21.8 million, or 27.3%, from $79.8 million, or 1.33% of total loans receivable, at December 31, 2014. As a percentage of average loans, annualized net charge-offs decreased to 0.34% for the six months ended June 30, 2015 compared to 0.41% for the year ended December 31, 2014 despite charge-offs in the current year of $6.1 million on a loan to a seed wholesaler and $2.0 million on a loan to a hotel operator.

Comparison of Operating Results for the Quarters Ended June 30, 2015 and 2014

Net income for the quarter ended June 30, 2015 was $15.3 million, or $0.17 per diluted share, an increase of $2.6 million, or 20.8%, from $12.7 million, or $0.14 per diluted share, for the quarter ended June 30, 2014.  The increase in net income resulted from a decrease in the provision for loan losses of $7.2 million, or 87.3%, and an increase in noninterest income of $98,000, or 0.6%. Partially offsetting these improvements were increases in income tax expense of $2.8 million, or 62.6%, and noninterest expense of $1.3 million, or 2.5% and a decrease in net interest income of $595,000, or 0.9%.  Annualized, net income for the quarter ended June 30, 2015 represents a 5.77% and 0.78% return on average equity and return on average assets, respectively, compared to 4.77% and 0.64% for the same quarter last year.  A discussion of significant changes follows.

Interest Income

Total interest income decreased by $1.0 million, or 1.3%, to $76.0 million for the quarter ended June 30, 2015 from $77.0 million for the quarter ended June 30, 2014. This decrease is the result of decreases in both the average balance and average yield on interest earning assets. The average balance of interest earning assets decreased by $67.6 million, or 0.9%, to $7.343 billion for the quarter ended June 30, 2015 from $7.410 billion for the quarter ended June 30, 2014 while the average yield earned on interest earning assets decreased to 4.15% for the quarter ended June 30, 2015 from 4.17% for the quarter ended June 30, 2014.

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Interest income on loans receivable increased by $259,000, or 0.4%, to $71.0 million for the quarter ended June 30, 2015 from $70.7 million for the quarter ended June 30, 2014.  This increase in interest income on loans receivable can be attributed to an increase in the average balance of loans receivable which increased by $240.4 million, or 4.1%, to $6.074 billion for the quarter ended June 30, 2015 from $5.834 billion for the quarter ended June 30, 2014.  This increase is due to continued success in growing business banking relationships and the retention of the residential mortgage loans originated by our wholesale lending function. Partially offsetting this increase was a decline in the average yield which decreased to 4.69% for the quarter ended June 30, 2015 from 4.86% for the quarter ended June 30, 2014.  The continued decline in average yield is due primarily to the historically low level of market interest rates.

Interest income on mortgage-backed securities decreased by $608,000, or 22.8%, to $2.1 million for the quarter ended June 30, 2015 from $2.7 million for the quarter ended June 30, 2014.  This decrease is the result of decreases in both the average balance and average yield. The average balance of mortgage-backed securities decreased by $123.3 million, or 20.5%, to $477.8 million for the quarter ended June 30, 2015 from $601.1 million for the quarter ended June 30, 2014 due primarily to redirecting cash flows from these securities to fund loan growth, repurchase our common stock and to pay dividends over the past year.  The average yield on mortgage-backed securities decreased to 1.72% for the quarter ended June 30, 2015 from 1.77% for the quarter ended June 30, 2014 due primarily to the pay-down of higher rate securities.

Interest income on investment securities decreased by $340,000, or 13.0%, to $2.3 million for the quarter ended June 30, 2015 from $2.6 million for the quarter ended June 30, 2014. This decrease is the result of decreases in both the average balance and average yield.  The average yield of investment securities decreased to 1.88% for the quarter ended June 30, 2015 from 2.06% for the quarter ended June 30, 2014.  This decrease is primarily the result of higher rate, tax-free, municipal securities maturing or being called and when replaced, being replaced by lower yielding, shorter duration government agency securities.  The average balance of investment securities decreased by $24.6 million, or 4.9%, to $482.7 million for the quarter ended June 30, 2015 from $507.3 million for the quarter ended June 30, 2014.  This decrease is due primarily to the maturity or call of municipal and government agency securities and the use of these proceeds to primarily fund loan growth.

Regular dividends on FHLB stock decreased by $222,000, or 31.9%, to $475,000 for the quarter ended June 30, 2015 from $697,000 for the quarter ended June 30, 2014. This decrease is due primarily to the timing of when the FHLB resumed the payment of regular dividends in 2014. As a result, the average yield decreased to 5.35% for the quarter ended June 30, 2015 from 6.34% for the quarter ended June 30, 2014. Additionally, the average balance decreased by $8.3 million, or 19.0%, to $35.6 million for the quarter ended June 30, 2015 from $43.9 million for the quarter ended June 30, 2014. FHLB dividends are included in the taxable investment securities line of the interest income section of our Consolidated Statements of Income.

Interest income on interest-earning deposits decreased by $106,000, or 37.1%, to $180,000 for the quarter ended June 30, 2015 from $286,000 for the quarter ended June 30, 2014.  This decrease is due to a decrease in the average balance of $151.7 million, or 35.8%, to $272.7 million for the quarter ended June 30, 2015 from $424.4 million for the quarter ended June 30, 2014, due to the utilization of cash to fund loan growth, repurchase our common stock and pay dividends over the past year.  The average yield on interest-earning deposits decreased slightly to 0.26% for the quarter ended June 30, 2015 from 0.27% for the quarter ended June 30, 2014.

57

Interest Expense

Interest expense decreased by $422,000, or 3.0%, to $13.8 million for the quarter ended June 30, 2015 from $14.2 million for the quarter ended June 30, 2014.  This decrease in interest expense was due primarily to a decrease in the average balance of interest-bearing liabilities, which decreased by $118.9 million, or 2.0%, to $5.773 billion for the quarter ended June 30, 2015 from $5.892 billion for the quarter ended June 30, 2014. The decrease in average interest-bearing liabilities resulted primarily from a reduction in average time deposits of $188.8 million, or 11.8%, compared to last year, as consumers continue to shift investment priorities to demand deposit products as well as to withdraw funds for living expenses. The decrease in time deposits was partially offset by an increase in the average balance of borrowed funds of $57.1 million, or 6.5%, from the prior year due to $85.0 million of FHLB advances borrowed during the first quarter of 2015 in order to lock-in low rate, long-term funding to replace advances maturing this year. The average cost of interest-bearing liabilities decreased slightly to 0.96% for the quarter ended June 30, 2015 from 0.97% for the quarter ended June 30, 2014 as a result of the change in deposit mix and lower interest rates on new FHLB advances.

Net Interest Income

Net interest income decreased by $595,000, or 0.9%, to $62.2 million for the quarter ended June 30, 2015 from $62.8 million for the quarter ended June 30, 2014.  This decrease is attributable to the factors discussed above. Redirecting existing funds and cash flow from investment securities to fund loan growth helped mitigate overall lower market interest rates as we maintained our net interest spread and margin.  Our net interest rate spread decreased by one basis point to 3.19% for the quarter ended June 30, 2015 from 3.20% for the quarter ended June 30, 2014 and our net interest margin remained unchanged at 3.39% for the quarters ended June 30, 2015 and 2014.

Provision for Loan Losses

The provision for loan losses decreased by $7.2 million, or 87.3%, to $1.1 million for the quarter ended June 30, 2015 from $8.3 million for the quarter ended June 30, 2014.  This decrease is due primarily to continued improvements in overall asset quality as classified loans decreased by $19.5 million, or 9.3%, to $191.2 million at June 30, 2015 from $210.7 million at June 30, 2014.  In addition, total nonaccrual loans decreased by $38.8 million, or 40.1%, to $58.0 million at June 30, 2015 from $96.8 million at June 30, 2014 and loans 90 days or more delinquent decreased by $13.8 million, or 26.9%, to $37.5 million at June 30, 2015 from $51.3 million at June 30, 2014.  Additionally, during the prior years’ quarter two business banking loans required combined provisions of $3.2 million.

In determining the amount of the current period provision, we considered current economic conditions, including unemployment levels and bankruptcy filings, and changes in real estate values and the impact of these factors on the quality of our loan portfolio and historical loss factors.  We analyze the allowance for loan losses as described in the section entitled “Allowance for Loan Losses.”  The provision that is recorded is sufficient, in our judgment, to bring this reserve to a level that reflects the losses inherent in our loan portfolio relative to loan mix, economic conditions and historical loss experience.

Noninterest Income

Noninterest income increased by $98,000, or 0.6%, to $16.5 million for the quarter ended June 30, 2015 from $16.4 million for the quarter ended June 30, 2014. The increase is primarily attributable to increases in gain on sale of investments and service charges and fees. Gain on sale of investments increased by $217,000, or 62.2%, to $566,000 for the quarter ended June 30, 2015 from $349,000 for the quarter ended June 30, 2014. This increase is due primarily to a $360,000 recovery on a called security for which we had previously recorded other-than-temporary-impairment. Service charges and fees increased by $186,000, or 2.1%, to $9.2 million for the quarter ended June 30, 2015 from $9.0 million for the quarter ended June 30, 2014 due primarily to an increase in the number of loan and transaction deposit customers

58

as well as adjustments to deposit account fees made in late 2014.  Partially offsetting these increases was a decrease in other operating income of $249,000, or 25.1% to $742,000 for the quarter ended June 30, 2015 from $991,000 for the quarter ended June 30, 2014 due primarily to an insurance settlement received in 2014.

Noninterest Expense

Noninterest expense increased by $1.3 million, or 2.5%, to $55.1 million for the quarter ended June 30, 2015 from $53.8 million for the quarter ended June 30, 2014.  This increase is primarily the result of increases in processing expenses, compensation and employee benefits and acquisition costs. Processing expense increased by $753,000, or 11.3%, to $7.4 million for the quarter ended June 30, 2015 from $6.6 million for the quarter ended June 30, 2014, due primarily to technology upgrades including the implementation of software that provides our customers with enhanced security for online financial transactions.  Compensation and employee benefits increased by $377,000, or 1.3%, to $28.9 million for the quarter ended June 30, 2015 from $28.5 million for the quarter ended June 30, 2014.  This increase is primarily the result of increased retirement benefit costs during the current year.  Additionally, expenses totaling $467,000 were incurred during the quarter ended June 30, 2015 related to the impending acquisition of LNB Bancorp, Inc. Partially offsetting these increases was a decrease in office operations of $360,000, or 9.3%, to $3.5 million for the quarter ended June 30, 2015 from $3.9 million for the quarter ended June 30, 2014 due primarily to reduced collection costs. Professional services also declined from the prior year by $123,000, or 6.9%, to $1.7 million for the quarter ended June 30, 2015 from $1.8 million for the quarter ended June 30, 2014 as a result of the completion of a third party review of our compliance management system.

Income Taxes

The provision for income taxes increased by $2.8 million, or 62.6%, to $7.2 million for the quarter ended June 30, 2015 from $4.4 million for the quarter ended June 30, 2014.  This increase in income tax expense is primarily the result of an increase in pretax income of $5.4 million, or 31.6%, and a reduction in tax-free income from municipal bonds as well as a lower amount of Pennsylvania state tax credits anticipated for 2015.  Our effective tax rate for the quarter ended June 30, 2015 was 32.0% compared to 25.9% for the quarter ended June 30, 2014.  Additionally, the prior year benefited from the tax deductibility of the special common stock dividend paid on shares held by our benefit plans. We anticipate our effective tax rate to be between 31.0% and 33.0% during 2015.

Comparison of Operating Results for the Six Months Ended June 30, 2015 and 2014

Net income for the six months ended June 30, 2015 was $31.5 million, or $0.34 per diluted share, an increase of $4.2 million, or 15.4%, from $27.3 million, or $0.30 per diluted share, for the six months ended June 30, 2014.  The increase in net income resulted from a decrease in the provision for loan losses of $13.8 million, or 87.6%, and an increase in net interest income of $1.3 million, or 1.0%. Partially offsetting these improvements were increases in income tax expense of $4.3 million, or 45.0%, and noninterest expense of $1.8 million, or 1.8%, and a decrease in noninterest income of $4.6 million, or 13.0%.  Annualized, net income for the six months ended June 30, 2015 represents a 5.97% and 0.81% return on average equity and return on average assets, respectively, compared to 4.97% and 0.69% for the same six month period last year.  A discussion of significant changes follows.

Interest Income

Total interest income increased by $537,000, or 0.4%, to $152.9 million for the six months ended June 30, 2015 from $152.3 million for the six months ended June 30, 2014. This increase is the result of an increase in the average yield earned on interest earning assets to 4.19% for the six months ended June 30, 2015 from 4.17% for the six months ended June 30, 2014 and a special dividend of $1.0 million from the FHLB received in the first quarter of 2015.  Partially offsetting these factors was a decrease in the average

59

balance on interest earning assets of $49.6 million, or 0.7%, to $7.311 billion for the six months ended June 30, 2015 from $7.361 billion for the six ended June 30, 2014.

Interest income on loans receivable increased by $1.7 million, or 1.2%, to $141.7 million for the six months ended June 30, 2015 from $140.0 million for the six months ended June 30, 2014.  This increase in interest income on loans receivable can be attributed to an increase in the average balance of loans receivable of $218.2 million, or 3.7%, to $6.047 billion for the six months ended June 30, 2015 from $5.829 billion for the six months ended June 30, 2014.  This increase is due to continued success in growing business banking relationships and the retention of the residential mortgage loans originated by our wholesale lending function. Partially offsetting this increase was a decline in the average yield which decreased to 4.73% for the six months ended June 30, 2015 from 4.85% for the six months ended June 30, 2014.  The continued decline in average yield is due primarily to the historically low level of market interest rates.

Interest income on mortgage-backed securities decreased by $1.2 million, or 21.4%, to $4.3 million for the six months ended June 30, 2015 from $5.5 million for the six months ended June 30, 2014.  This decrease is the result of decreases in both the average balance and average yield. The average balance of mortgage-backed securities decreased by $118.9 million, or 19.4%, to $492.2 million for the six months ended June 30, 2015 from $611.1 million for the six months ended June 30, 2014 due primarily to redirecting cash flows from these securities to fund loan growth, repurchase our common stock and pay dividends over the past year.  The average yield on mortgage-backed securities decreased to 1.74% for the six months ended June 30, 2015 from 1.79% for the six months ended June 30, 2014 due primarily to the pay-down of higher rate securities.

Interest income on investment securities decreased by $682,000, or 12.8%, to $4.7 million for the six months ended June 30, 2015 from $5.3 million for the six months ended June 30, 2014. This decrease is the result of decreases in both the average balance and average yield.  The average yield on investment securities decreased to 1.93% for the six months ended June 30, 2015 from 2.11% for the six months ended June 30, 2014.  This decrease is primarily the result of higher rate, tax-free, municipal securities maturing or being called and if replaced, being replaced by lower yielding, shorter duration government agency securities.  The average balance of investment securities decreased by $22.9 million, or 4.5%, to $484.4 million for the six months ended June 30, 2015 from $507.3 million for the six months ended June 30, 2014.  This decrease is due primarily to the maturity or call of municipal and government agency securities and the use of these proceeds to fund loan growth.

Dividends on FHLB stock increased by $905,000, or 93.0%, to $1.9 million for the six months ended June 30, 2015 from $973,000 for the six months ended June 30, 2014. This increase is due a $1.0 million special dividend paid in the first quarter of 2015.  Additionally, the average yield, exclusive of the special dividend, increased to 4.71% for the six months ended June 30, 2015 from 4.44% for the six months ended June 30, 2014. Partially offsetting these factors was a decrease in the average balance of $7.9 million, or 18.2%, to $35.9 million for the six months ended June 30, 2015 from $43.8 million for the six months ended June 30, 2014. FHLB dividends are included in the taxable investment securities line of the interest income section of our Consolidated Statements of Income.

Interest income on interest-earning deposits decreased by $167,000, or 34.4%, to $319,000 for the six months ended June 30, 2015 from $486,000 for the six months ended June 30, 2014.  This decrease is due to a decrease in the average balance of $118.1 million, or 31.9%, to $252.2 million for the six months ended June 30, 2015 from $370.3 million for the six months ended June 30, 2014, due to the utilization of cash to fund loan growth, repurchase our common stock and pay dividends over the past year.  The average

60

yield on interest-earning deposits decreased slightly to 0.25% for the six months ended June 30, 2015 from 0.26% for the six months ended June 30, 2014.

Interest Expense

Interest expense decreased by $727,000, or 2.6%, to $27.7 million for the six months ended June 30, 2015 from $28.4 million for the six months ended June 30, 2014.  This decrease in interest expense was due to a decrease in the average balance of interest-bearing liabilities, which decreased by $95.5 million, or 1.6%, to $5.782 billion for the six months ended June 30, 2015 from $5.878 billion for the six months ended June 30, 2014. The decrease in average interest-bearing liabilities resulted primarily from a reduction in average time deposits of $190.8 million, or 11.8%, compared to last year, as consumers continue to shift investment priorities to demand deposit products as well as to utilize funds for living expenses. The decrease in time deposits was partially offset by an increase in the average balance of borrowed funds of $68.3 million, or 7.8%, from the prior year due primarily to $85.0 million of FHLB advances borrowed during the first quarter of 2015 and an increase of $27.0 million, or 0.8%, in non-maturity deposit accounts. The average cost of interest-bearing liabilities remained unchanged at 0.97% for the six months ended June 30, 2015 and 2014.

Net Interest Income

Net interest income increased by $1.3 million, or 1.0%, to $125.2 million for the six months ended June 30, 2015 from $123.9 million for the six months ended June 30, 2014.  This increase is attributable to the factors discussed above. Solid loan growth enabled us to redirect cash flows from lower yielding cash and investments which helped offset overall lower market interest rates and increase our net interest spread and margin.  Our net interest rate spread increased to 3.22% for the six months ended June 30, 2015 from 3.20% for the six months ended June 30, 2014 and our net interest margin increased to 3.40% for the six months ended June 30, 2015 from 3.37% for the six months ended June 30, 2014.

Provision for Loan Losses

The provision for loan losses decreased by $13.8 million, or 87.6%, to $2.0 million for the six months ended June 30, 2015 from $15.8 million for the six months ended June 30, 2014.  This decrease is due primarily to continued improvements in overall asset quality as classified loans decreased by $19.5 million, or 9.3%, to $191.2 million at June 30, 2015 from $210.7 million at June 30, 2014 and total delinquent loans decreased by $15.2 million, or 18.0%, to $69.5 million at June 30, 2015 from $84.7 million at June 30, 2014.  In addition, total nonaccrual loans decreased by $38.8 million, or 40.1%, to $58.0 million at June 30, 2015 from $96.8 million at June 30, 2014 and loans 90 days or more delinquent decreased by $13.8 million, or 26.9%, to $37.5 million at June 30, 2015 from $51.3 million at June 30, 2014. Additionally, during the first half of the prior year two business banking loans required combined reserves of $8.2 million.

In determining the amount of the current period provision, we considered current economic conditions, including unemployment levels and bankruptcy filings, and changes in real estate values and the impact of these factors on the quality of our loan portfolio and historical loss factors.  We analyze the allowance for loan losses as described in the section entitled “Allowance for Loan Losses.”  The provision that is recorded is sufficient, in our judgment, to bring this reserve to a level that reflects the losses inherent in our loan portfolio relative to loan mix, economic conditions and historical loss experience.

Noninterest Income

Noninterest income decreased by $4.6 million, or 13.0%, to $31.2 million for the six months ended June 30, 2015 from $35.8 million for the six months ended June 30, 2014. The decrease is primarily attributable to a decrease in the gain on sale of investments and an increase in loss on real estate owned.  Gain on sale of investments decreased by $3.0 million, or 82.1%, to $661,000 for the six months ended June

61

30, 2015 from $3.7 million for the six months ended June 30, 2014 as a result of the sale of equity securities during the first half of 2014.  Loss on real estate owned increased by $890,000, or 127.7%, to $1.6 million for the six months ended June 30, 2015 from $697,000 for the six months ended June 30, 2014.  This increase is due primarily to the write-down of one commercial property in the first quarter of 2015. Partially offsetting these factors was an increase in services charges and fees of $437,000, or 2.5%, to $17.9 million for the six months ended June 30, 2015 from $17.5 million for the six months ended June 30, 2014. This increase is due primarily to an increase in the number of loan and transaction deposit customers as well as adjustments to deposit account fees made in late 2014.

Noninterest Expense

Noninterest expense increased by $1.8 million, or 1.8%, to $108.8 million for the six months ended June 30, 2015 from $107.0 million for the six months ended June 30, 2014.  This increase is primarily the result of increases in processing expenses, marketing expenses and acquisition costs. Processing expense increased by $1.4 million, or 10.3%, to $14.6 million for the six months ended June 30, 2015 from $13.2 million for the six months ended June 30, 2014, due primarily to software and software amortization expense related to upgrades made during the past two years and the implementation of software that provides our customers with enhanced security for online financial transactions. Marketing expenses increased by $598,000, or 13.1%, to $5.2 million for the six months ended June 30, 2015 from $4.6 million for the six months ended June 30, 2014.  This increase is primarily the result of the timing of loan and checking account campaigns.  Additionally, expenses totaling $814,000 were incurred during the six months ended June 30, 2015 related to the impending acquisition of LNB.  Partially offsetting these increases was a decrease in office operations of $437,000, or 5.7%, to $7.2 million for the six months ended June 30, 2015 from $7.6 million for the six months ended June 30, 2014 due primarily to reduced collection costs. Professional services also declined from the prior year by $393,000, or 10.2%, to $3.4 million for the six months ended June 30, 2015 from $3.8 million for the six months ended June 30, 2014 as a result of the completion of a third party review of our compliance management system during 2014.

Income Taxes

The provision for income taxes increased by $4.3 million, or 45.0%, to $14.0 million for the six months ended June 30, 2015 from $9.7 million for the six months ended June 30, 2014.  This increase in income tax expense is primarily the result of an increase in pretax income of $8.5 million, or 23.1%, and a reduction in tax free income from municipal bonds as well as a lower amount of Pennsylvania state tax credits anticipated for 2015.  Our effective tax rate for the six months ended June 30, 2015 was 30.8% compared to 26.2% for the six months ended June 30, 2014.  Additionally, the prior year benefited from the tax deductibility of the special common stock dividends paid on shares held by our benefit plans. We anticipate our effective tax rate to be between 31.0% and 33.0% during 2015.

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Average Balance Sheet

(Dollars in thousands)

The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on interest- earning assets and average cost of interest-bearing liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages.

	Quarter ended June 30,
	2015					2014
				Avg.				Avg.
	Average			yield/		Average		yield/
	balance		Interest	cost (f)		balance	Interest	cost (f)
Assets:
Interest-earning assets:
Loans receivable (a) (b) (includes FTE adjustments of $460 and $540, respectively)	$	6,073,911	71,445	4.72	%	5,833,540	71,266	4.90	%
Mortgage-backed securities (c)	477,800		2,058	1.72	%	601,066	2,666	1.77	%
Investment securities (c) (includes FTE adjustments of $615 and $860, respectively)	482,670		2,887	2.39	%	507,315	3,472	2.74	%
FHLB stock	35,608		475	5.35	%	43,944	697	6.34	%
Other interest-earning deposits	272,691		180	0.26	%	424,434	286	0.27	%
Total interest-earning assets (includes FTE adjustments of $1,075 and $1,400, respectively)	7,342,680		77,045	4.21	%	7,410,299	78,387	4.23	%
Noninterest earning assets (d)	529,528					528,914
Total assets	$	7,872,208				7,939,213
Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Savings deposits	$	1,263,785	838	0.27	%	1,239,563	821	0.27	%
Interest-bearing checking deposits	920,071		131	0.06	%	896,014	149	0.07	%
Money market deposit accounts	1,147,017		759	0.27	%	1,182,542	792	0.27	%
Time deposits	1,409,740		3,963	1.13	%	1,598,523	4,659	1.17	%
Borrowed funds (e)	929,744		6,929	2.99	%	872,653	6,623	3.04	%
Junior subordinated debentures	103,094		1,172	4.50	%	103,094	1,170	4.49	%
Total interest-bearing liabilities	5,773,451		13,792	0.96	%	5,892,389	14,214	0.97	%
Noninterest-bearing checking deposits	957,912					852,253
Noninterest-bearing liabilities	77,075					128,072
Total liabilities	6,808,438					6,872,714
Shareholders’ equity	1,063,770					1,066,499
Total liabilities and shareholders’ equity	$	7,872,208				7,939,213
Net interest income/ Interest rate spread			63,253	3.25	%		64,173	3.26	%
Net interest-earning assets/ Net interest margin	$	1,569,229		3.45	%	1,517,910		3.46	%
Ratio of interest-earning assets to interest-bearing liabilities	1.27X					1.26X

(a) Average gross loans includes loans held as available-for-sale and loans placed on nonaccrual status.

(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which were not material.

(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(d) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.

(e) Average balances include FHLB borrowings and collateralized borrowings.

(f) Annualized. Shown on a fully tax-equivalent basis (“FTE”). The FTE basis adjusts for the tax benefit of income on certain tax exempt loans and investments using the federal statutory rate of 35% for each period presented. We believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts. GAAP basis yields were: Loans — 4.69% and 4.86%, respectively; Investment securities — 1.88% and 2.06%, respectively; interest-earning assets — 4.15% and 4.17%, respectively. GAAP basis net interest rate spreads were 3.19% and 3.20%, respectively; and GAAP basis net interest margins were 3.39% and 3.39%, respectively.

63

Rate/ Volume Analysis

(Dollars in Thousands)

The following table represents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected interest income and interest expense during the periods indicated.  Information is provided in each category with respect to (i) changes attributable to changes in volume (changes in volume multiplied by prior rate), (ii) changes attributable to changes in rate (changes in rate multiplied by prior volume), and (iii) net change.  Changes that cannot be attributed to either rate or volume have been allocated to both rate and volume. 

Quarters ended June 30, 2015 and 2014
						Net
	Rate			Volume		Change
Interest earning assets:
Loans receivable	$	(2,766	)	2,945		179
Mortgage-backed securities	(77		)	(531	)	(608	)
Investment securities	(416		)	(169	)	(585	)
FHLB stock	(100		)	(122	)	(222	)
Other interest-earning deposits	(4		)	(102	)	(106	)
Total interest-earning assets	(3,363		)	2,021		(1,342	)
Interest-bearing liabilities:
Savings deposits	1			16		17
Interest-bearing checking deposits	(21		)	3		(18	)
Money market deposit accounts	(9		)	(24	)	(33	)
Time deposits	(146		)	(550	)	(696	)
Borrowed funds	(119		)	425		306
Junior subordinated debentures	2			—		2
Total interest-bearing liabilities	(292		)	(130	)	(422	)
Net change in net interest income	$	(3,071	)	2,151		(920	)

64

Average Balance Sheet

(Dollars in thousands)

The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on interest- earning assets and average cost of interest-bearing liabilities for the periods indicated.  Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented.  Average balances are calculated using daily averages.

	Six months ended June 30,
	2015					2014
				Avg.				Avg.
	Average			yield/		Average		yield/
	balance		Interest	cost (f)		balance	Interest	cost (f)
Assets:
Interest-earning assets:
Loans receivable (a) (b) (includes FTE adjustments of $931 and $1,084, respectively)	$	6,046,741	142,627	4.76	%	5,828,500	141,132	4.88	%
Mortgage-backed securities (c)	492,209		4,292	1.74	%	611,050	5,459	1.79	%
Investment securities (c) (includes FTE adjustments of $1,341 and $1,752, respectively)	484,366		6,006	2.48	%	507,334	7,099	2.80	%
FHLB stock (g)	35,872		1,878	4.71	%	43,830	973	4.44	%
Other interest-earning deposits	252,210		319	0.25	%	370,292	486	0.26	%
Total interest-earning assets (includes FTE adjustments of $2,272 and $2,836, respectively)	7,311,398		155,122	4.25	%	7,361,006	155,149	4.25	%
Noninterest earning assets (d)	569,689					573,837
Total assets	$	7,881,087				7,934,843
Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Savings deposits	$	1,247,854	1,651	0.27	%	1,224,042	1,624	0.27	%
Interest-bearing checking deposits	899,260		262	0.06	%	873,972	288	0.07	%
Money market deposit accounts	1,156,079		1,524	0.27	%	1,178,202	1,574	0.27	%
Time deposits	1,430,989		8,020	1.13	%	1,621,745	9,425	1.17	%
Borrowed funds (e)	945,192		13,904	2.97	%	876,897	13,180	3.03	%
Junior subordinated debentures	103,094		2,330	4.50	%	103,094	2,327	4.49	%
Total interest-bearing liabilities	5,782,468		27,691	0.97	%	5,877,952	28,418	0.97	%
Noninterest-bearing checking deposits	936,090					833,750
Noninterest-bearing liabilities	98,992					114,994
Total liabilities	6,817,550					6,826,696
Shareholders’ equity	1,063,537					1,108,147
Total liabilities and shareholders’ equity	$	7,881,087				7,934,843
Net interest income/ Interest rate spread			127,431	3.28	%		126,731	3.28	%
Net interest-earning assets/ Net interest margin	$	1,528,930		3.46	%	1,483,054		3.44	%
Ratio of interest-earning assets to interest-bearing liabilities	1.26X					1.25X

(a) Average gross loans includes loans held as available-for-sale and loans placed on nonaccrual status.

(b) Interest income includes accretion/ amortization of deferred loan fees/ expenses, which were not material.

(c) Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(d) Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.

(e) Average balances include FHLB borrowings and collateralized borrowings.

(f) Annualized. Shown on a fully tax-equivalent basis (“FTE”). The FTE basis adjusts for the tax benefit of income on certain tax exempt loans and investments using the federal statutory rate of 35% for each period presented. We believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts. GAAP basis yields were: Loans — 4.73% and 4.85%, respectively; Investment securities — 1.93% and 2.11%, respectively; interest-earning assets — 4.19% and 4.17%, respectively. GAAP basis net interest rate spreads were 3.22% and 3.20%, respectively; and GAAP basis net interest margins were 3.40% and 3.37%, respectively.

(g) Excludes the $1.0 million special dividend paid in February 2015 from the average yield calculation.

65

Rate/ Volume Analysis

(Dollars in Thousands)

The following table represents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected interest income and interest expense during the periods indicated.  Information is provided in each category with respect to (i) changes attributable to changes in volume (changes in volume multiplied by prior rate), (ii) changes attributable to changes in rate (changes in rate multiplied by prior volume), and (iii) net change.  Changes that cannot be attributed to either rate or volume have been allocated to both rate and volume. 

Six months ended June 30, 2015 and 2014
						Net
	Rate			Volume		Change
Interest earning assets:
Loans receivable	$	(3,833	)	5,328		1,495
Mortgage-backed securities	(105		)	(1,062	)	(1,167	)
Investment securities	(808		)	(285	)	(1,093	)
FHLB stock	1,099			(194	)	905
Other interest-earning deposits	(12		)	(155	)	(167	)
Total interest-earning assets	(3,659		)	3,632		(27	)
Interest-bearing liabilities:
Savings deposits	(5		)	32		27
Interest-bearing checking deposits	(33		)	7		(26	)
Money market deposit accounts	(20		)	(30	)	(50	)
Time deposits	(336		)	(1,069	)	(1,405	)
Borrowed funds	(281		)	1,005		724
Junior subordinated debentures	3			—		3
Total interest-bearing liabilities	(672		)	(55	)	(727	)
Net change in net interest income	$	(2,987	)	3,687		700

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As the holding company for a savings bank, one of our primary market risks is interest rate risk.  Interest rate risk is the sensitivity of net interest income to variations in interest rates over a specified time period.  The sensitivity results from differences in the time periods in which interest rate sensitive assets and liabilities mature or re-price.  We attempt to control interest rate risk by matching, within acceptable limits, the re-pricing periods of assets and liabilities.  We have attempted to limit our exposure to interest sensitivity by increasing core deposits, enticing customers to extend certificates of deposit maturities, borrowing funds with fixed-rates and longer maturities and by shortening the maturities of our assets by emphasizing the origination of more short-term fixed rate loans and adjustable rate loans. We also continue to sell a portion of the long-term, fixed-rate mortgage loans that we originate.  In addition, we purchase shorter term or adjustable-rate investment securities and mortgage-backed securities.

We have an Asset/Liability Committee consisting of members of management which meets monthly to review market interest rates, economic conditions, the pricing of interest-earning assets and

66

interest-bearing liabilities and the balance sheet structure.  On a quarterly basis, this Committee also reviews the interest rate risk position and cash flow projections.

The Board of Directors has a Risk Management Committee which meets quarterly and reviews interest rate risk and trends, our interest sensitivity position, the liquidity position and the market risk inherent in the investment portfolio.

In an effort to assess interest rate risk and market risk, we utilize a simulation model to determine the effect of immediate incremental increases and decreases in interest rates on net income and the market value of equity.  Certain assumptions are made regarding loan prepayments and decay rates of savings and interest-bearing demand accounts.  Because it is difficult to accurately project the market reaction of depositors and borrowers, the effect of actual changes in interest rates on these assumptions may differ from simulated results.  We have established the following guidelines for assessing interest rate risk:

Net interest income simulation.  Given a non-parallel shift of 100 basis points (“bps”), 200 bps and 300 bps in interest rates, the estimated net income may not decrease by more than 5%, 10% and 15%, respectively, within a one-year period.

Net income simulation.  Given a non-parallel shift of 100 basis points (“bps”), 200 bps and 300 bps in interest rates, the estimated net income may not decrease by more than 10%, 20% and 30%, respectively, within a one-year period.

Market value of equity simulation.  The market value of equity is the present value of assets and liabilities.  Given a non-parallel shift of 100 bps, 200 bps and 300 bps in interest rates, the market value of equity may not decrease by more than 15%, 30% and 35%, respectively, from the computed economic value at current interest rate levels.

The following table illustrates the simulated impact of a 100 bps, 200 bps or 300 bps upward or a 100 bps downward movement in interest rates on net income, return on average equity, earnings per share and market value of equity.  This analysis was prepared assuming that interest-earning asset and interest-bearing liability levels at June 30, 2015 remain constant.  The impact of the rate movements was computed by simulating the effect of an immediate and sustained shift in interest rates over a twelve-month period from June 30, 2015 levels.

	Increase									Decrease
Non-parallel shift in interest rates over the next 12 months	100 bps			200 bps			300 bps			100 bps
Projected percentage increase/ (decrease) in net interest income	(1.4		)%	(2.0		)%	(3.2		)%	(4.2		)%
Projected percentage increase/ (decrease) in net income	(2.9		)%	(3.3		)%	(5.2		)%	(13.6		)%
Projected increase/ (decrease) in return on average equity	(2.8		)%	(3.1		)%	(5.0		)%	(13.3		)%
Projected increase/ (decrease) in earnings per share	$	(0.02	)	$	(0.03	)	$	(0.04	)	$	(0.09	)
Projected percentage increase/ (decrease) in market value of equity	(3.7		)%	(8.7		)%	(14.4		)%	(2.4		)%

The figures included in the table above represent projections that were computed based upon certain assumptions including prepayment rates and decay rates.  These assumptions are inherently uncertain and, as a result, cannot precisely predict the impact of changes in interest rates.  Actual results may differ significantly due to timing, magnitude and frequency of interest rate changes and changes in market conditions.

67

ITEM 4.CONTROLS AND PROCEDURES

Under the supervision of and with the participation of management, including the Principal Executive Officer and Principal Financial Officer, we evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this quarterly report (the “Evaluation Date”).  Based upon that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that, as of the Evaluation Date, these disclosure controls and procedures were effective.

There were no changes in the internal controls over financial reporting during the period covered by this report or in other factors that have materially affected, or are reasonably likely to materially affect the internal control over financial reporting.

PART II.OTHER INFORMATION

Item 1. Legal Proceedings

We are subject to a number of asserted and unasserted claims encountered in the normal course of business.  We believe that any additional liability, other than that which has already been accrued, that may result from such potential litigation will not have a material adverse effect on the financial statements.  However, we cannot presently determine whether or not any claims against us will have a material adverse effect on our results of operations in any future reporting period.  See note 11.

Item 1A.  Risk Factors

There are no material changes to the risk factors as previously discussed in Item 1A, to Part I of our 2014 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

a.)Not applicable.

b.)Not applicable.

c.)The following table discloses information regarding the repurchase of shares of common stock during the quarter ending June 30, 2015:

68

Month	Number of shares purchased	Average price paid per share		Total number of shares purchased as part of a publicly announced repurchase plan (1)	Maximum number of shares yet to be purchased under the plan (1)
April	111,300	$	12.18	111,300	195,989
May	5,300	12.40		5,300	190,689
June	63,200	12.51		63,200	127,489
	179,800	$	12.30

Month	Number of shares purchased	Average price paid per share		Total number of shares purchased as part of a publicly announced repurchase plan (2)	Maximum number of shares yet to be purchased under the plan (2)
April	—	$	—	—	5,000,000
May	—	—		—	5,000,000
June	—	—		—	5,000,000
	—	$	—

(1)  Reflects the program for 4,750,000 shares announced September 26, 2011. This program does not have an expiration date.

(2)  Reflects the program for 5,000,000 shares announced December 13, 2012. This program does not have an expiration date.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

Item 6. Exhibits

31.1Certification of the Chief Executive Officer pursuant to Rule 13a-15 or 15d-15 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2Certification of the Chief Financial Officer pursuant to Rule 13a-15 or 15d-15 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INSXBRL Instance Document

101.SCHXBRL Taxonomy Extension Schema Document

101.CALXBRL Taxonomy Extension Calculation Linkbase Document

101.DEFXBRL Taxonomy Extension Definition Linkbase Document

101.LABXBRL Taxonomy Extension Label Linkbase

101.PREXBRL Taxonomy Extension Presentation Linkbase Document

69

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed by the undersigned thereunto duly authorized.

		NORTHWEST BANCSHARES, INC.
		(Registrant)
Date:	August 10, 2015	By:	/s/ William J. Wagner
			William J. Wagner
			President and Chief Executive Officer
			(Duly Authorized Officer)
Date:	August 10, 2015	By:	/s/ Gerald J. Ritzert
			Gerald J. Ritzert
			Controller
			(Principal Accounting Officer)

70

EX-31.1

Exhibit 31.1

Certification

I, William J. Wagner, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Northwest Bancshares, Inc.;

2.Based on my knowledge, this report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 10, 2015	/s/ William J. Wagner
Date	William J. Wagner
	Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification

I, William W. Harvey, Jr., certify that:

1.I have reviewed this quarterly report on Form 10-Q of Northwest Bancshares, Inc.;

2.Based on my knowledge, this report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 10, 2015	/s/ William W. Harvey, Jr.
Date	William W. Harvey, Jr.
	Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification by the Chief Executive Officer and Chief Financial Officer

The undersigned officers of Northwest Bancshares, Inc. (the “Company”) hereby certify that, to the best of their knowledge:

1.The Company’s quarterly report on Form 10-Q for the period ended June 30, 2015 (the “Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 10, 2015	/s/ William J. Wagner
Date	William J. Wagner
	Chief Executive Officer
August 10, 2015	/s/ William W. Harvey, Jr.
Date	William W. Harvey, Jr.
	Chief Financial Officer

The purpose of this statement is solely to comply with Title 18, Chapter 63, Section 1350 of the United States Code, as amended by Section 906 of the Sarbanes-Oxley Act of 2002.

A signed original of this written statement required by Section 906 has been provided to Northwest Bancshares, Inc. and will be retained by Northwest Bancshares, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Investment securities and impairment of investment securities (Details 3) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Marketable securities
Less than 12 months - Fair value	$ 120,735	$ 50,216
Less than 12 months - Unrealized loss	(445)	(262)
12 months or more - Fair value	293,323	442,336
12 months or more - Unrealized loss	(5,095)	(8,473)
Total - Fair value	414,058	492,552
Total - Unrealized loss	(5,540)	(8,735)
U.S. government and agencies
Marketable securities
Less than 12 months - Fair value	101,837	28,878
Less than 12 months - Unrealized loss	(340)	(67)
12 months or more - Fair value	125,031	244,828
12 months or more - Unrealized loss	(723)	(2,633)
Total - Fair value	226,868	273,706
Total - Unrealized loss	(1,063)	(2,700)
Municipal securities
Marketable securities
Less than 12 months - Fair value	750
Less than 12 months - Unrealized loss	(32)
Total - Fair value	750
Total - Unrealized loss	(32)
Corporate debt issues
Marketable securities
12 months or more - Fair value	2,028	2,003
12 months or more - Unrealized loss	(396)	(419)
Total - Fair value	2,028	2,003
Total - Unrealized loss	(396)	(419)
Equity securities
Marketable securities
Less than 12 months - Fair value		506
Less than 12 months - Unrealized loss		(116)
Total - Fair value		506
Total - Unrealized loss		(116)
Residential mortgage-backed securities | Agency CMOs
Marketable securities
Less than 12 months - Fair value	18,148	20,832
Less than 12 months - Unrealized loss	(73)	(79)
12 months or more - Fair value	166,264	195,505
12 months or more - Unrealized loss	(3,976)	(5,421)
Total - Fair value	184,412	216,337
Total - Unrealized loss	$ (4,049)	$ (5,500)

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Guarantees (Details) - Jun. 30, 2015 - USD ($)	Total
Guarantees
Maximum potential amount of future payments	$ 25,000,000
Maximum potential amount of future payments fully collateralized	24,300,000
Liability recognized for the obligations	1,200,000
Recourse provisions for recovery of amounts from third parties	$ 0

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Loans receivable (Details 8) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) item	Jun. 30, 2014 USD ($) item	Jun. 30, 2015 USD ($) item	Jun. 30, 2014 USD ($) item
Troubled debt restructurings
Number of contracts | item	5	6	8	17
Total	$ 427	$ 1,252	$ 621	$ 2,734
Rate
Troubled debt restructurings
Total	74		157
Payment
Troubled debt restructurings
Total				110
Maturity date
Troubled debt restructurings
Total	308	921	419	2,264
Other
Troubled debt restructurings
Total	$ 45	$ 331	$ 45	$ 360
Personal Banking
Troubled debt restructurings
Number of contracts | item	3	5	6	11
Total	$ 121	$ 921	$ 315	$ 2,206
Personal Banking | Rate
Troubled debt restructurings
Total	74		157
Personal Banking | Maturity date
Troubled debt restructurings
Total	2	$ 921	113	$ 2,206
Personal Banking | Other
Troubled debt restructurings
Total	$ 45		$ 45
Personal Banking | Residential mortgage loans
Troubled debt restructurings
Number of contracts | item	2	3	4	9
Total	$ 119	$ 575	$ 230	$ 1,860
Personal Banking | Residential mortgage loans | Rate
Troubled debt restructurings
Total	74		74
Personal Banking | Residential mortgage loans | Maturity date
Troubled debt restructurings
Total		$ 575	111	$ 1,860
Personal Banking | Residential mortgage loans | Other
Troubled debt restructurings
Total	$ 45		$ 45
Personal Banking | Home equity loans
Troubled debt restructurings
Number of contracts | item	1	2	2	2
Total	$ 2	$ 346	$ 85	$ 346
Personal Banking | Home equity loans | Rate
Troubled debt restructurings
Total			83
Personal Banking | Home equity loans | Maturity date
Troubled debt restructurings
Total	$ 2	$ 346	$ 2	$ 346
Business Banking
Troubled debt restructurings
Number of contracts | item	2	1	2	6
Total	$ 306	$ 331	$ 306	$ 528
Business Banking | Payment
Troubled debt restructurings
Total				110
Business Banking | Maturity date
Troubled debt restructurings
Total	$ 306		$ 306	58
Business Banking | Other
Troubled debt restructurings
Total		$ 331		$ 360
Business Banking | Commercial real estate loans
Troubled debt restructurings
Number of contracts | item	1		1	3
Total	$ 12		$ 12	$ 82
Business Banking | Commercial real estate loans | Maturity date
Troubled debt restructurings
Total	$ 12		$ 12	58
Business Banking | Commercial real estate loans | Other
Troubled debt restructurings
Total				$ 24
Business Banking | Commercial loans
Troubled debt restructurings
Number of contracts | item	1	1	1	3
Total	$ 294	$ 331	$ 294	$ 446
Business Banking | Commercial loans | Payment
Troubled debt restructurings
Total				110
Business Banking | Commercial loans | Maturity date
Troubled debt restructurings
Total	$ 294		$ 294
Business Banking | Commercial loans | Other
Troubled debt restructurings
Total		$ 331		$ 336

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Earnings Per Share (Details) - Stock options - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Antidilutive securities excluded from the calculation of earnings per share
Options excluded from the calculation of earnings per share (in shares)	1,711,080		4,344,225
Weighted average share price during the reporting period (in dollars per share)	$ 12.64		$ 12.42
Average share price during the reporting period (in dollars per share)	$ 12.32	$ 13.72	$ 12.11	$ 14.09

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Loans receivable (Details 6) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Evaluation of impaired loans by portfolio segment and by class of financing receivable
Loans collectively evaluated for impairment	$ 6,043,235	$ 5,898,759
Loans individually evaluated for impairment	81,422	91,132
Loans individually evaluated for impairment for which there is a related impairment reserve	47,575	63,659
Related impairment reserve	4,321	8,930
Loans individually evaluated for impairment for which there is no related impairment reserve	33,847	27,473
Personal Banking
Evaluation of impaired loans by portfolio segment and by class of financing receivable
Loans collectively evaluated for impairment	3,895,573	3,820,479
Loans individually evaluated for impairment	9,817	9,852
Loans individually evaluated for impairment for which there is a related impairment reserve	9,817	9,852
Related impairment reserve	1,499	1,363
Personal Banking | Residential mortgage loans
Evaluation of impaired loans by portfolio segment and by class of financing receivable
Loans collectively evaluated for impairment	2,590,038	2,514,060
Loans individually evaluated for impairment	7,132	7,396
Loans individually evaluated for impairment for which there is a related impairment reserve	7,132	7,396
Related impairment reserve	1,221	1,116
Personal Banking | Home equity loans
Evaluation of impaired loans by portfolio segment and by class of financing receivable
Loans collectively evaluated for impairment	1,053,241	1,063,741
Loans individually evaluated for impairment	2,588	2,390
Loans individually evaluated for impairment for which there is a related impairment reserve	2,588	2,390
Related impairment reserve	276	246
Personal Banking | Other consumer loans
Evaluation of impaired loans by portfolio segment and by class of financing receivable
Loans collectively evaluated for impairment	252,294	242,678
Loans individually evaluated for impairment	97	66
Loans individually evaluated for impairment for which there is a related impairment reserve	97	66
Related impairment reserve	2	1
Business Banking
Evaluation of impaired loans by portfolio segment and by class of financing receivable
Loans collectively evaluated for impairment	2,147,662	2,078,280
Loans individually evaluated for impairment	71,605	81,280
Loans individually evaluated for impairment for which there is a related impairment reserve	37,758	53,807
Related impairment reserve	2,822	7,567
Loans individually evaluated for impairment for which there is no related impairment reserve	33,847	27,473
Business Banking | Commercial real estate loans
Evaluation of impaired loans by portfolio segment and by class of financing receivable
Loans collectively evaluated for impairment	1,798,992	1,734,864
Loans individually evaluated for impairment	60,751	66,320
Loans individually evaluated for impairment for which there is a related impairment reserve	30,513	42,869
Related impairment reserve	2,117	6,189
Loans individually evaluated for impairment for which there is no related impairment reserve	30,238	23,451
Business Banking | Commercial loans
Evaluation of impaired loans by portfolio segment and by class of financing receivable
Loans collectively evaluated for impairment	348,670	343,416
Loans individually evaluated for impairment	10,854	14,960
Loans individually evaluated for impairment for which there is a related impairment reserve	7,245	10,938
Related impairment reserve	705	1,378
Loans individually evaluated for impairment for which there is no related impairment reserve	$ 3,609	$ 4,022

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Changes in Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2015

Changes in Accumulated Other Comprehensive Income

Schedule of the changes in accumulated other comprehensive income by component

The following table shows the changes in accumulated other comprehensive income by component for the periods indicated (in thousands):

	For the quarter ended June 30, 2015
	Unrealized gains and (losses) on securities available- for-sale			Change in fair value of interest rate swaps		Change in defined benefit pension plans		Total
Balance as of March 31, 2015	$	6,345		(4,034	)	(23,534	)	(21,223	)
Other comprehensive income before reclassification adjustments	(1,788		)	488		—		(1,300	)
Amounts reclassified from accumulated other comprehensive income (1), (2)	(279		)	—		219		(60	)
Net other comprehensive loss	(2,067		)	488		219		(1,360	)
Balance as of June 30, 2015	$	4,278		(3,546	)	(23,315	)	(22,583	)

	For the quarter ended June 30, 2014
	Unrealized gains and (losses) on securities available- for-sale			Change in fair value of interest rate swaps		Change in defined benefit pension plans		Total
Balance as of March 31, 2014	$	459		(4,973	)	(3,581	)	(8,095	)
Other comprehensive income before reclassification adjustments	3,123			98		—		3,221
Amounts reclassified from accumulated other comprehensive income (3), (4)	(204		)	—		(138	)	(342	)
Net other comprehensive income	2,919			98		(138	)	2,879
Balance as of June 30, 2014	$	3,378		(4,875	)	(3,719	)	(5,216	)

(1) Consists of realized gains on securities (gain on sales of investments, net) of $458, net of tax (income tax expense) of $(179).

(2) Consists of amortization of prior service cost (compensation and employee benefits) of $581 and amortization of net loss (compensation and employee benefits) of $(940), net of tax (income tax expense) of $140.  See note 8.

(3) Consists of realized gains on securities (gain on sales of investments, net) of $334, net of tax (income tax expense) of $(130).

(4) Consists of amortization of prior service cost (compensation and employee benefits) of $581 and amortization of net loss (compensation and employee benefits) of $(369), net of tax (income tax expense) of $(74).  See note 8.

The following table shows the changes in accumulated other comprehensive income by component for the periods indicated (in thousands):

	For the six months ended June 30, 2015
	Unrealized gains and (losses) on securities available- for-sale			Change in fair value of interest rate swaps		Change in defined benefit pension plans		Total
Balance as of December 31, 2014	$	3,461		(4,078	)	(23,753	)	(24,370	)
Other comprehensive income before reclassification adjustments	1,164			532		—		1,696
Amounts reclassified from accumulated other comprehensive income (1), (2)	(347		)	—		438		91
Net other comprehensive income	817			532		438		1,787
Balance as of June 30, 2015	$	4,278		(3,546	)	(23,315	)	(22,583	)

	For the six months ended June 30, 2014
	Unrealized gains and (losses) on securities available- for-sale			Change in fair value of interest rate swaps		Change in defined benefit pension plans		Total
Balance as of December 31, 2013	$	(3,233	)	(5,224	)	(3,443	)	(11,900	)
Other comprehensive income before reclassification adjustments	8,719			349		—		9,068
Amounts reclassified from accumulated other comprehensive income (3), (4)	(2,108		)	—		(276	)	(2,384	)
Net other comprehensive income	6,611			349		(276	)	6,684
Balance as of June 30, 2014	$	3,378		(4,875	)	(3,719	)	(5,216	)

(1) Consists of realized gains on securities (gain on sales of investments, net) of $569, net of tax (income tax expense) of $(222).

(2) Consists of amortization of prior service cost (compensation and employee benefits) of $1,162 and amortization of net loss (compensation and employee benefits) of $(1,880), net of tax (income tax expense) of $280. See note 8.

(3) Consists of realized gains on securities (gain on sales of investments, net) of $3,456, net of tax (income tax expense) of $(1,348).

(4) Consists of amortization of prior service cost (compensation and employee benefits) of $1,162 and amortization of net loss (compensation and employee benefits) of $(737), net of tax (income tax expense) of $(149). See note 8.

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Pension and Other Post-retirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Pension Plans
Components of net periodic pension cost
Service cost	$ 1,430	$ 1,035	$ 2,860	$ 2,070
Interest cost	1,531	1,457	3,062	2,914
Expected return on plan assets	(2,593)	(2,416)	(5,186)	(4,832)
Amortization of prior service cost	(581)	(581)	(1,162)	(1,162)
Amortization of the net loss	925	357	1,850	713
Net periodic (benefit)/ cost	712	(148)	1,424	(297)
Pension Plans | Minimum
Components of net periodic pension cost
Estimated contribution for the current year			4,000
Pension Plans | Maximum
Components of net periodic pension cost
Estimated contribution for the current year			8,000
Other post-retirement benefits
Components of net periodic pension cost
Interest cost	15	17	30	33
Amortization of the net loss	15	12	30	24
Net periodic (benefit)/ cost	$ 30	$ 29	$ 60	$ 57

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Business Segments (Tables)

6 Months Ended

Jun. 30, 2015

Business Segments

Schedule of financial information for reportable segments

At or for the quarter ended:

	Community		Consumer
June 30, 2015 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	71,273	4,492	205		75,970
Intersegment interest income	582		—	(582	)	—
Interest expense	12,781		582	429		13,792
Provision for loan losses	850		200	—		1,050
Noninterest income	16,080		411	34		16,525
Noninterest expense	51,682		3,081	372		55,135
Income tax expense (benefit)	7,183		434	(404	)	7,213
Net income	$	15,439	606	(740	)	15,305
Total assets	$	7,740,273	108,348	15,889		7,864,510

	Community		Consumer
June 30, 2014 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	72,061	4,706	220		76,987
Intersegment interest income	591		—	(591	)	—
Interest expense	13,148		591	475		14,214
Provision for loan losses	7,500		785	—		8,285
Noninterest income	15,932		482	13		16,427
Noninterest expense	50,540		2,948	318		53,806
Income tax expense (benefit)	4,489		358	(412	)	4,435
Net income	$	12,907	506	(739	)	12,674
Total assets	$	7,772,277	105,909	22,442		7,900,628

(1)   Eliminations consist of intercompany loans, interest income and interest expense.

At or for the six months ended:

	Community		Consumer
June 30, 2015 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	143,604	8,822	424		152,850
Intersegment interest income	1,157		—	(1,157	)	—
Interest expense	25,669		1,157	865		27,691
Provision for loan losses	1,100		850	—		1,950
Noninterest income	30,406		681	63		31,150
Noninterest expense	102,122		6,034	690		108,846
Income tax expense (benefit)	14,218		609	(789	)	14,038
Net income	$	32,058	853	(1,436	)	31,475
Total assets	$	7,740,273	108,348	15,889		7,864,510

	Community		Consumer
June 30, 2014 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	142,405	9,365	543		152,313
Intersegment interest income	1,197		—	(1,197	)	—
Interest expense	26,317		1,197	904		28,418
Provision for loan losses	14,350		1,420	—		15,770
Noninterest income	32,689		770	2,349		35,808
Noninterest expense	100,402		5,869	698		106,969
Income tax expense (benefit)	9,002		684	(7	)	9,679
Net income	$	26,220	965	100		27,285
Total assets	$	7,772,277	105,909	22,442		7,900,628

(1)   Eliminations consist of intercompany loans, interest income and interest expense.

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Loans receivable (Details 10) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Loan payment delinquencies
30-59 days delinquent	$ 17,285	$ 45,985
60-89 days delinquent	14,750	13,324
90 days or greater delinquent	37,471	41,326
Total delinquency	69,506	100,635
Current	6,055,151	5,889,256
Total loans	6,124,657	5,989,891
Personal Banking
Loan payment delinquencies
30-59 days delinquent	12,134	38,767
60-89 days delinquent	9,672	11,077
90 days or greater delinquent	22,940	26,752
Total delinquency	44,746	76,596
Current	3,860,644	3,753,735
Total loans	3,905,390	3,830,331
Personal Banking | Residential mortgage loans
Loan payment delinquencies
30-59 days delinquent	3,250	27,443
60-89 days delinquent	5,815	6,970
90 days or greater delinquent	16,125	17,696
Total delinquency	25,190	52,109
Current	2,571,980	2,469,347
Total loans	2,597,170	2,521,456
Personal Banking | Home equity loans
Loan payment delinquencies
30-59 days delinquent	3,768	5,752
60-89 days delinquent	2,090	1,672
90 days or greater delinquent	4,616	6,606
Total delinquency	10,474	14,030
Current	1,045,355	1,052,101
Total loans	1,055,829	1,066,131
Personal Banking | Other consumer loans
Loan payment delinquencies
30-59 days delinquent	5,116	5,572
60-89 days delinquent	1,767	2,435
90 days or greater delinquent	2,199	2,450
Total delinquency	9,082	10,457
Current	243,309	232,287
Total loans	252,391	242,744
Business Banking
Loan payment delinquencies
30-59 days delinquent	5,151	7,218
60-89 days delinquent	5,078	2,247
90 days or greater delinquent	14,531	14,574
Total delinquency	24,760	24,039
Current	2,194,507	2,135,521
Total loans	2,219,267	2,159,560
Business Banking | Commercial real estate loans
Loan payment delinquencies
30-59 days delinquent	3,788	4,956
60-89 days delinquent	4,919	2,038
90 days or greater delinquent	12,673	11,099
Total delinquency	21,380	18,093
Current	1,838,363	1,783,091
Total loans	1,859,743	1,801,184
Business Banking | Commercial loans
Loan payment delinquencies
30-59 days delinquent	1,363	2,262
60-89 days delinquent	159	209
90 days or greater delinquent	1,858	3,475
Total delinquency	3,380	5,946
Current	356,144	352,430
Total loans	$ 359,524	$ 358,376

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Loans receivable (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Changes in allowance for losses on allocated loans receivable
Balance at the beginning of the period	$ 67,298	$ 76,234	$ 67,518	$ 71,348
Provision for loan losses	1,050	8,285	1,950	15,770
Charge-offs	(12,374)	(15,020)	(16,828)	(19,269)
Recoveries	3,083	1,943	6,417	3,593
Balance at the end of the period	59,057	71,442	59,057	71,442
Personal Banking
Changes in allowance for losses on allocated loans receivable
Balance at the beginning of the period	14,955	19,705	16,249	20,607
Provision for loan losses	1,754	2,709	2,529	3,965
Charge-offs	(2,579)	(2,926)	(5,196)	(5,473)
Recoveries	451	421	999	810
Balance at the end of the period	14,581	19,909	14,581	19,909
Personal Banking | Residential mortgage loans
Changes in allowance for losses on allocated loans receivable
Balance at the beginning of the period	5,077	7,467	5,581	7,875
Provision for loan losses	76	1,142	(206)	1,177
Charge-offs	(278)	(883)	(613)	(1,342)
Recoveries	17	41	130	57
Balance at the end of the period	4,892	7,767	4,892	7,767
Personal Banking | Home equity loans
Changes in allowance for losses on allocated loans receivable
Balance at the beginning of the period	4,043	6,958	4,550	7,245
Provision for loan losses	(187)	72	(400)	109
Charge-offs	(542)	(593)	(884)	(965)
Recoveries	131	79	179	127
Balance at the end of the period	3,445	6,516	3,445	6,516
Personal Banking | Other consumer loans
Changes in allowance for losses on allocated loans receivable
Balance at the beginning of the period	5,835	5,280	6,118	5,487
Provision for loan losses	1,865	1,495	3,135	2,679
Charge-offs	(1,759)	(1,450)	(3,699)	(3,166)
Recoveries	303	301	690	626
Balance at the end of the period	6,244	5,626	6,244	5,626
Business Banking
Changes in allowance for losses on allocated loans receivable
Balance at the beginning of the period	48,365	52,378	46,904	46,079
Provision for loan losses	3,274	5,381	3,786	12,121
Charge-offs	(9,795)	(12,094)	(11,632)	(13,796)
Recoveries	2,632	1,522	5,418	2,783
Balance at the end of the period	44,476	47,187	44,476	47,187
Business Banking | Commercial real estate loans
Changes in allowance for losses on allocated loans receivable
Balance at the beginning of the period	33,252	36,209	33,389	35,199
Provision for loan losses	(1,558)	364	(1,316)	1,685
Charge-offs	(3,439)	(2,578)	(4,552)	(3,510)
Recoveries	1,908	1,086	2,642	1,707
Balance at the end of the period	30,163	35,081	30,163	35,081
Business Banking | Commercial loans
Changes in allowance for losses on allocated loans receivable
Balance at the beginning of the period	15,113	16,169	13,515	10,880
Provision for loan losses	4,832	5,017	5,102	10,436
Charge-offs	(6,356)	(9,516)	(7,080)	(10,286)
Recoveries	724	436	2,776	1,076
Balance at the end of the period	14,313	12,106	14,313	12,106
Unallocated
Changes in allowance for losses on allocated loans receivable
Balance at the beginning of the period	3,978	4,151	4,365	4,662
Provision for loan losses	$ (3,978)	195	$ (4,365)	(316)
Balance at the end of the period		$ 4,346		$ 4,346

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Investment securities and impairment of investment securities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Amortized cost
Due in one year or less	$ 500
Total	854,147	$ 906,702
Gross unrealized holding gains
Due in one year or less	8
Total	12,550	14,404
Gross unrealized holding losses
Total	(5,540)	(8,735)
Fair value
Due in one year or less	508
Total Fair value	861,157	912,371
U.S. government and agencies
Amortized cost
Due in one year or less	21	25
Fair value
Due in one year or less	21	25
Debt issued by government sponsored enterprises
Amortized cost
Due after one year through five years	320,553	310,172
Due after five years through ten years	24,500	25,746
Gross unrealized holding gains
Due after one year through five years	466	287
Gross unrealized holding losses
Due after one year through five years	(1,035)	(2,672)
Due after five years through ten years	(28)	(28)
Fair value
Due after one year through five years	319,984	307,787
Due after five years through ten years	24,472	25,718
Equity securities
Amortized cost
Total	1,417	2,591
Gross unrealized holding gains
Total	515	682
Gross unrealized holding losses
Total		(116)
Fair value
Total Fair value	1,932	3,157
Municipal securities
Amortized cost
Due in one year or less	1,085	810
Due after one year through five years	6,733	7,878
Due after five years through ten years	4,651	6,965
Due after ten years	48,627	51,839
Gross unrealized holding gains
Due in one year or less	3	15
Due after one year through five years	118	132
Due after five years through ten years	113	115
Due after ten years	1,651	2,391
Gross unrealized holding losses
Due after ten years	(32)
Fair value
Due in one year or less	1,088	825
Due after one year through five years	6,851	8,010
Due after five years through ten years	4,764	7,080
Due after ten years	50,246	54,230
Corporate debt issues
Amortized cost
Due after ten years	17,002	18,267
Gross unrealized holding gains
Due after ten years	2,324	2,579
Gross unrealized holding losses
Due after ten years	(396)	(419)
Fair value
Due after ten years	18,930	20,427
Residential mortgage-backed securities
Amortized cost
Total	429,058	482,409
Gross unrealized holding gains
Total	7,352	8,203
Gross unrealized holding losses
Total	(4,049)	(5,500)
Fair value
Total Fair value	432,361	485,112
Fixed rate | Pass-through
Amortized cost
Total	65,398	72,852
Gross unrealized holding gains
Total	2,693	3,149
Gross unrealized holding losses
Total	(321)	(124)
Fair value
Total Fair value	67,770	75,877
Fixed rate | Non-agency CMOs
Amortized cost
Total	2,793	3,162
Gross unrealized holding gains
Total	320	246
Fair value
Total Fair value	3,113	3,408
Fixed rate | Agency CMOs
Amortized cost
Total	201,346	226,413
Gross unrealized holding gains
Total	579	685
Gross unrealized holding losses
Total	(3,684)	(5,331)
Fair value
Total Fair value	198,241	221,767
Variable rate | Pass-through
Amortized cost
Total	60,275	66,140
Gross unrealized holding gains
Total	3,182	3,466
Gross unrealized holding losses
Total	(8)	(8)
Fair value
Total Fair value	63,449	69,598
Variable rate | Agency CMOs
Amortized cost
Total	99,246	113,842
Gross unrealized holding gains
Total	578	657
Gross unrealized holding losses
Total	(36)	(37)
Fair value
Total Fair value	$ 99,788	$ 114,462

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Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Amortizable intangible assets:
Amortization expense	$ 269	$ 331	$ 537	$ 662
Estimated amortization expense
For the year ending December 31, 2015	1,074		1,074
For the year ending December 31, 2016	835		835
For the year ending December 31, 2017	597		597
For the year ending December 31, 2018	429		429
For the year ending December 31, 2019	260		260
For the year ending December 31, 2020	92		92
Core Deposits
Amortizable intangible assets:
Intangible asset - gross	30,578		30,578		$ 30,578
Less: accumulated amortization	(30,578)		(30,578)		(30,578)
Customer and Contract
Amortizable intangible assets:
Intangible asset - gross	8,234		8,234		6,197
Acquisitions			263		2,037
Less: accumulated amortization	(5,738)		(5,738)		(5,201)
Intangible asset - net	$ 2,759		$ 2,759		$ 3,033

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Disclosures About Fair Value of Financial Instruments (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Total assets	$ 57,118	$ 71,488
Loans evaluated for impairment
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Total assets	43,254	54,729
Real estate owned
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Total assets	13,864	16,759
Level 3
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Total assets	57,118	71,488
Level 3 | Loans evaluated for impairment
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Total assets	43,254	54,729
Level 3 | Real estate owned
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Total assets	$ 13,864	$ 16,759

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Loans receivable (Details 7) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2015 USD ($) item	Mar. 31, 2015 USD ($) item	Jun. 30, 2014 USD ($) item	Mar. 31, 2014 USD ($) item	Jun. 30, 2015 USD ($) item	Jun. 30, 2014 USD ($) item	Dec. 31, 2014 USD ($) item	Dec. 31, 2013 USD ($) item
Number of contract
FinancingReceivableModificationsNumberOfContract | item	231	242	248	258	231	248	248	262
Number of contracts new TDRs | item	4		6		6	13
Number of re-modified TDRs | item	1				2	4
FinancingReceivableModificationsNumberOfContract | item	231	242	248	258	231	248	248	262
Roll forward of troubled debt restructurings
Beginning TDR balance:	$ 60,645	$ 61,788	$ 74,511	$ 79,166	$ 61,788	$ 79,166	$ 79,166
New TDRs	386		1,343		498	2,652
Re-modified TDRs	45				130	159
Net paydowns	(3,617)		(2,526)		(4,440)	(7,020)
Ending TDR balance:	56,184	$ 60,645	63,793	$ 74,511	56,184	63,793	61,788	$ 79,166
Accruing TDRs	40,741		39,844		40,741	39,844
Non-accrual TDRs	$ 15,443		$ 23,949		$ 15,443	$ 23,949	$ 24,500
Troubled debt restructurings:
Number of contracts | item	5		6		8	17
Recorded investment at the time of modification	$ 431		$ 1,343		$ 628	$ 2,811
Current recorded investment	427		1,252		621	2,734
Current allowance	$ 30		$ 91		$ 48	$ 253
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Number of contracts | item	2		3		3	3
Recorded investment at the time of modification	$ 274		$ 7,572		$ 324	$ 7,572
Current recorded investment	$ 271		504		$ 271	504
Current allowance			$ 35			$ 35
Minimum
Troubled debt restructurings
Period of time to return TDRs included in impaired loans to performing status through the fulfilling of contractual terms					6 months
Residential mortgage loans
Number of contract
Number of contracts paid off | item	1				1
Roll forward of troubled debt restructurings
Amount of contracts paid off	$ (53)				$ (53)
Home equity loans
Number of contract
Number of contracts charged off | item	1		1		3	1
Number of contracts paid off | item			1		1	1
Roll forward of troubled debt restructurings
Amount of contracts charged off	$ (68)		$ (130)		$ (99)	$ (130)
Amount of contracts paid off			$ (39)		$ (6)	$ (39)
Commercial real estate loans
Number of contract
Number of contracts charged off | item	1				2	2
Number of contracts paid off | item	6		4		8	6
Roll forward of troubled debt restructurings
Amount of contracts charged off	$ (9)				$ (23)	$ (31)
Amount of contracts paid off	$ (926)		$ (561)		$ (1,005)	$ (838)
Commercial loans
Number of contract
Number of contracts charged off | item			7		2	8
Number of contracts paid off | item	6		3		6	9
Roll forward of troubled debt restructurings
Amount of contracts charged off			$ (8,244)		$ (387)	$ (8,251)
Amount of contracts paid off	$ (219)		$ (561)		$ (219)	$ (1,875)
Personal Banking
Number of contract
Number of re-modified TDRs | item	1				2	1
Troubled debt restructurings:
Number of contracts | item	3		5		6	11
Recorded investment at the time of modification	$ 122		$ 1,008		$ 319	$ 2,298
Current recorded investment	$ 121		921		315	2,206
Current allowance			$ 67		$ 18	$ 186
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Number of contracts | item	2				2
Recorded investment at the time of modification	$ 274				$ 274
Current recorded investment	$ 271				$ 271
Personal Banking | Residential mortgage loans
Number of contract
Number of re-modified TDRs | item	1				1	1
Troubled debt restructurings:
Number of contracts | item	2		3		4	9
Recorded investment at the time of modification	$ 120		$ 632		$ 232	$ 1,922
Current recorded investment	$ 119		575		230	1,860
Current allowance			$ 65		$ 1	$ 184
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Number of contracts | item	1				1
Recorded investment at the time of modification	$ 251				$ 251
Current recorded investment	$ 250				$ 250
Personal Banking | Home equity loans
Number of contract
Number of re-modified TDRs | item					1
Troubled debt restructurings:
Number of contracts | item	1		2		2	2
Recorded investment at the time of modification	$ 2		$ 376		$ 87	$ 376
Current recorded investment	$ 2		346		85	346
Current allowance			$ 2		$ 17	$ 2
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Number of contracts | item	1				1
Recorded investment at the time of modification	$ 23				$ 23
Current recorded investment	$ 21				$ 21
Business Banking
Number of contract
Number of re-modified TDRs | item						3
Troubled debt restructurings:
Number of contracts | item	2		1		2	6
Recorded investment at the time of modification	$ 309		$ 335		$ 309	$ 513
Current recorded investment	306		331		306	528
Current allowance	$ 30		$ 24		$ 30	$ 67
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Number of contracts | item			3		1	3
Recorded investment at the time of modification			$ 7,572		$ 50	$ 7,572
Current recorded investment			504			504
Current allowance			$ 35			$ 35
Business Banking | Commercial real estate loans
Number of contract
Number of re-modified TDRs | item						2
Troubled debt restructurings:
Number of contracts | item	1				1	3
Recorded investment at the time of modification	$ 12				$ 12	$ 89
Current recorded investment	12				12	82
Current allowance	$ 1				$ 1	$ 32
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Number of contracts | item			2			2
Recorded investment at the time of modification			$ 128			$ 128
Current recorded investment			126			126
Current allowance			$ 35			$ 35
Business Banking | Commercial loans
Number of contract
Number of re-modified TDRs | item						1
Troubled debt restructurings:
Number of contracts | item	1		1		1	3
Recorded investment at the time of modification	$ 297		$ 335		$ 297	$ 424
Current recorded investment	294		331		294	446
Current allowance	$ 29		$ 24		$ 29	$ 35
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Number of contracts | item			1		1	1
Recorded investment at the time of modification			$ 7,444		$ 50	$ 7,444
Current recorded investment			$ 378			$ 378

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
OPERATING ACTIVITIES:
Net Income	$ 31,475	$ 27,285
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	1,950	15,770
Net gain on sale of assets	(311)	(3,874)
Net depreciation, amortization and accretion	2,571	4,937
Decrease in other assets	11,233	4,661
Increase/ (decrease) in other liabilities	1,169	(3,531)
Net amortization on marketable securities	173	210
Noncash write-down of real estate owned	1,927	1,381
Origination of loans held for sale	(221)	(758)
Proceeds from sale of loans held for sale	224	1,023
Noncash compensation expense related to stock benefit plans	2,279	2,961
Net cash provided by operating activities	52,469	50,065
INVESTING ACTIVITIES:
Purchase of marketable securities available-for-sale	(59,980)	(22,805)
Proceeds from maturities and principal reductions of marketable securities held-to-maturity	42,409	7,205
Proceeds from maturities and principal reductions of marketable securities available-for-sale	111,630	70,071
Proceeds from sale of marketable securities available-for-sale	1,214	6,048
Loan originations	(996,253)	(939,594)
Proceeds from loan maturities and principal reductions	850,823	842,751
Purchase of Federal Home Loan Bank stock	(4,773)	(271)
Proceeds from sale of real estate owned	5,704	5,704
Sale of real estate owned for investment, net	304	304
Purchase of premises and equipment	(5,172)	(5,034)
Acquisitions, net of cash received	(438)	(2,792)
Net cash used in investing activities	(54,532)	(38,413)
FINANCING ACTIVITIES:
Increase in deposits, net	61,940	105,043
Proceeds from long-term borrowings	85,000
Repayments of long-term borrowings	(50,026)	(27)
Net decrease in short-term borrowings	(24,027)	(12,283)
Increase in advances by borrowers for taxes and insurance	11,256	11,008
Purchase of common stock for retirement	(6,003)
Cash dividends paid	(25,902)	(125,793)
Proceeds from stock options exercised	2,067	4,463
Net provided by/ (used in) financing activities	54,305	(17,589)
Net increase/ (decrease) in cash and cash equivalents	52,242	(5,937)
Cash and cash equivalents at beginning of period	240,706	391,905
Net increase/ (decrease) in cash and cash equivalents	52,242	(5,937)
Cash and cash equivalents at end of period	292,948	385,968
Cash and cash equivalents:
Total cash and cash equivalents	240,706	391,905
Cash paid during the period for:
Interest on deposits and borrowings (including interest credited to deposit accounts of $10,508 and $11,608, respectively)	27,325	28,490
Income taxes	4,823	14,872
Business acquisitions:
Fair value of assets acquired	(438)	2,798
Cash paid	438	(2,792)
Liabilities assumed		6
Non-cash activities:
Loan foreclosures and repossessions	5,012	3,707
Sale of real estate owned financed by the Company	$ 174	$ 330

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Disclosures About Fair Value of Financial Instruments (Details 5) - Jun. 30, 2015 - USD ($) $ in Thousands	Total
Debt securities
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value	$ 9,223
Debt securities | Discounted cash flow
Quantitative information for Level 3 Fair Value Measurements Assets
Default rates (as a percent)	1.00%
Prepayment speeds (as a percent)	1.00%
Debt securities | Discounted cash flow | Minimum
Quantitative information for Level 3 Fair Value Measurements Assets
Discount margin (as a percent)	0.35%
Debt securities | Discounted cash flow | Maximum
Quantitative information for Level 3 Fair Value Measurements Assets
Discount margin (as a percent)	2.10%
Debt securities | Discounted cash flow | Weighted Average
Quantitative information for Level 3 Fair Value Measurements Assets
Discount margin (as a percent)	0.69%
Loans evaluated for impairment
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value	$ 43,254
Estimated costs to sell (as a percent)	10.00%
Loans evaluated for impairment | Discounted cash flow | Minimum
Quantitative information for Level 3 Fair Value Measurements Assets
Discount margin (as a percent)	3.75%
Loans evaluated for impairment | Discounted cash flow | Maximum
Quantitative information for Level 3 Fair Value Measurements Assets
Discount margin (as a percent)	6.50%
Loans evaluated for impairment | Discounted cash flow | Weighted Average
Quantitative information for Level 3 Fair Value Measurements Assets
Discount margin (as a percent)	5.13%
Real estate owned
Quantitative information for Level 3 Fair Value Measurements Assets
Fair value	$ 13,864
Estimated costs to sell (as a percent)	10.00%

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Loans receivable (Details 3) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Loan portfolio by portfolio segment and by class of financing receivable
Recorded investment in loans receivable	$ 6,124,657		$ 5,989,891
Allowance for loan losses	59,057		63,153
Recorded investment in loans on nonaccrual	57,996		79,808
Recorded investment in loans past due 90 days or more and still accruing	385		235
TDRs	56,184	$ 60,645	61,788	$ 63,793	$ 74,511	$ 79,166
Allowance related to TDRs	3,789		7,395
Additional commitments to customers with loans classified as TDRs	1,024		1,263
Nonaccrual TDRs	15,443		24,500	$ 23,949
Personal Banking
Loan portfolio by portfolio segment and by class of financing receivable
Recorded investment in loans receivable	3,905,390		3,830,331
Allowance for loan losses	14,581		16,249
Recorded investment in loans on nonaccrual	28,097		33,583
Recorded investment in loans past due 90 days or more and still accruing	364		214
TDRs	8,928		8,986
Allowance related to TDRs	1,284		1,362
Personal Banking | Residential mortgage loans
Loan portfolio by portfolio segment and by class of financing receivable
Recorded investment in loans receivable	2,597,170		2,521,456
Allowance for loan losses	4,892		5,581
Recorded investment in loans on nonaccrual	18,977		21,194
Recorded investment in loans past due 90 days or more and still accruing	6		8
TDRs	6,340		6,574
Allowance related to TDRs	1,008		1,133
Personal Banking | Home equity loans
Loan portfolio by portfolio segment and by class of financing receivable
Recorded investment in loans receivable	1,055,829		1,066,131
Allowance for loan losses	3,445		4,550
Recorded investment in loans on nonaccrual	6,482		9,569
TDRs	2,588		2,412
Allowance related to TDRs	276		229
Personal Banking | Other consumer loans
Loan portfolio by portfolio segment and by class of financing receivable
Recorded investment in loans receivable	252,391		242,744
Allowance for loan losses	6,244		6,118
Recorded investment in loans on nonaccrual	2,638		2,820
Recorded investment in loans past due 90 days or more and still accruing	358		206
Business Banking
Loan portfolio by portfolio segment and by class of financing receivable
Recorded investment in loans receivable	2,219,267		2,159,560
Allowance for loan losses	44,476		46,904
Recorded investment in loans on nonaccrual	29,899		46,225
Recorded investment in loans past due 90 days or more and still accruing	21		21
TDRs	47,256		52,802
Allowance related to TDRs	2,505		6,033
Additional commitments to customers with loans classified as TDRs	1,024		1,263
Business Banking | Commercial real estate loans
Loan portfolio by portfolio segment and by class of financing receivable
Recorded investment in loans receivable	1,859,743		1,801,184
Allowance for loan losses	30,163		33,389
Recorded investment in loans on nonaccrual	22,640		38,647
TDRs	37,028		41,917
Allowance related to TDRs	1,718		4,938
Additional commitments to customers with loans classified as TDRs	141		449
Business Banking | Commercial loans
Loan portfolio by portfolio segment and by class of financing receivable
Recorded investment in loans receivable	359,524		358,376
Allowance for loan losses	14,313		13,515
Recorded investment in loans on nonaccrual	7,259		7,578
Recorded investment in loans past due 90 days or more and still accruing	21		21
TDRs	10,228		10,885
Allowance related to TDRs	787		1,095
Additional commitments to customers with loans classified as TDRs	$ 883		$ 814

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share

Schedule of computation of basic and diluted earnings per share

The computation of basic and diluted earnings per share follows (in thousands, except share data and per share amounts):

	Quarter ended			Six months ended
	June 30,			June 30,
	2015		2014	2015	2014
Reported net income	$	15,305	12,674	31,475	27,285
Weighted average common shares outstanding	91,538,172		91,491,654	91,585,766	91,324,169
Dilutive potential shares due to effect of stock options	459,833		1,039,488	364,450	1,118,462
Total weighted average common shares and dilutive potential shares	91,998,005		92,531,142	91,950,216	92,442,631
Basic earnings per share:	$	0.17	0.14	0.34	0.30
Diluted earnings per share:	$	0.17	0.14	0.34	0.30

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2015

Goodwill and Other Intangible Assets

Schedule of intangible assets subject to amortization

The following table provides information for intangible assets subject to amortization at the dates indicated (in thousands):

	June 30,			December 31,
	2015			2014
Amortizable intangible assets:
Core deposit intangibles — gross	$	30,578		30,578
Acquisitions	—			—
Less: accumulated amortization	(30,578		)	(30,578	)
Core deposit intangibles — net	—			—
Customer and Contract intangible assets — gross	8,234			6,197
Acquisitions	263			2,037
Less: accumulated amortization	(5,738		)	(5,201	)
Customer and Contract intangible assets — net	$	2,759		3,033

Schedule of the actual aggregate amortization expense as well as estimated aggregate amortization expense, based upon current levels of intangible assets

The following table shows the actual aggregate amortization expense for the quarters and six months ended June 30, 2015 and 2014, as well as the estimated aggregate amortization expense, based upon current levels of intangible assets, for the current fiscal year and each of the five succeeding fiscal years (in thousands):

For the quarter ended June 30, 2015	$	269
For the quarter ended June 30, 2014	331
For the six months ended June 30, 2015	537
For the six months ended June 30, 2014	662
For the year ending December 31, 2015	1,074
For the year ending December 31, 2016	835
For the year ending December 31, 2017	597
For the year ending December 31, 2018	429
For the year ending December 31, 2019	260
For the year ending December 31, 2020	92

Schedule of the changes in carrying amount of goodwill

The following table provides information for the changes in the carrying amount of goodwill (in thousands):

	Community		Consumer
	Banks		Finance	Total
Balance at December 31, 2013	$	173,031	1,613	174,644
Goodwill acquired	679		—	679
Impairment losses	—		—	—
Balance at December 31, 2014	173,710		1,613	175,323
Goodwill acquired	175		—	175
Impairment losses	—		—	—
Balance at June 30, 2015	$	173,885	1,613	175,498

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Earnings Per Share (Details 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share
Reported net income	$ 15,305	$ 12,674	$ 31,475	$ 27,285
Weighted average common shares outstanding	91,538,172	91,491,654	91,585,766	91,324,169
Dilutive potential shares due to effect of stock options	459,833	1,039,488	364,450	1,118,462
Total weighted average common shares and dilutive potential shares	91,998,005	92,531,142	91,950,216	92,442,631
Basic earnings per share (in dollars per share)	$ 0.17	$ 0.14	$ 0.34	$ 0.30
Diluted earnings per share (in dollars per share)	$ 0.17	$ 0.14	$ 0.34	$ 0.30

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Loans receivable (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Loan delinquencies
Recorded investment in loans receivable	$ 6,124,657	$ 5,989,891
Percentage of total loans receivable	100.00%	100.00%
90 days or greater delinquent	$ 37,471	$ 41,326
Percentage of total loans 90 or more days delinquent	100.00%	100.00%
Pennsylvania
Loan delinquencies
Recorded investment in loans receivable	$ 4,600,836	$ 4,542,379
Percentage of total loans receivable	75.10%	75.80%
90 days or greater delinquent	$ 28,987	$ 30,630
Percentage of total loans 90 or more days delinquent	77.30%	74.10%
New York
Loan delinquencies
Recorded investment in loans receivable	$ 1,038,703	$ 961,051
Percentage of total loans receivable	17.00%	16.00%
90 days or greater delinquent	$ 3,665	$ 3,584
Percentage of total loans 90 or more days delinquent	9.80%	8.70%
Ohio
Loan delinquencies
Recorded investment in loans receivable	$ 71,553	$ 71,432
Percentage of total loans receivable	1.20%	1.20%
90 days or greater delinquent	$ 134	$ 752
Percentage of total loans 90 or more days delinquent	0.40%	1.80%
Maryland
Loan delinquencies
Recorded investment in loans receivable	$ 282,985	$ 285,426
Percentage of total loans receivable	4.60%	4.80%
90 days or greater delinquent	$ 3,137	$ 3,213
Percentage of total loans 90 or more days delinquent	8.40%	7.80%
Other
Loan delinquencies
Recorded investment in loans receivable	$ 130,580	$ 129,603
Percentage of total loans receivable	2.10%	2.20%
90 days or greater delinquent	$ 1,548	$ 3,147
Percentage of total loans 90 or more days delinquent	4.10%	7.60%
Personal Banking
Loan delinquencies
Recorded investment in loans receivable	$ 3,905,390	$ 3,830,331
90 days or greater delinquent	22,940	26,752
Personal Banking | Pennsylvania
Loan delinquencies
Recorded investment in loans receivable	3,353,288	3,285,588
90 days or greater delinquent	16,384	19,144
Personal Banking | New York
Loan delinquencies
Recorded investment in loans receivable	295,779	286,865
90 days or greater delinquent	2,422	2,228
Personal Banking | Ohio
Loan delinquencies
Recorded investment in loans receivable	30,566	30,705
90 days or greater delinquent	72	752
Personal Banking | Maryland
Loan delinquencies
Recorded investment in loans receivable	161,109	162,759
90 days or greater delinquent	2,866	2,736
Personal Banking | Other
Loan delinquencies
Recorded investment in loans receivable	64,648	64,414
90 days or greater delinquent	1,196	1,892
Personal Banking | Residential mortgage loans
Loan delinquencies
Recorded investment in loans receivable	2,597,170	2,521,456
90 days or greater delinquent	16,125	17,696
Personal Banking | Residential mortgage loans | Pennsylvania
Loan delinquencies
Recorded investment in loans receivable	2,223,206	2,151,361
90 days or greater delinquent	11,498	12,282
Personal Banking | Residential mortgage loans | New York
Loan delinquencies
Recorded investment in loans receivable	165,217	161,445
90 days or greater delinquent	1,553	1,237
Personal Banking | Residential mortgage loans | Ohio
Loan delinquencies
Recorded investment in loans receivable	18,379	18,486
90 days or greater delinquent	58	710
Personal Banking | Residential mortgage loans | Maryland
Loan delinquencies
Recorded investment in loans receivable	133,981	134,228
90 days or greater delinquent	1,820	1,678
Personal Banking | Residential mortgage loans | Other
Loan delinquencies
Recorded investment in loans receivable	56,387	55,936
90 days or greater delinquent	1,196	1,789
Personal Banking | Home equity loans
Loan delinquencies
Recorded investment in loans receivable	1,055,829	1,066,131
90 days or greater delinquent	4,616	6,606
Personal Banking | Home equity loans | Pennsylvania
Loan delinquencies
Recorded investment in loans receivable	897,285	909,139
90 days or greater delinquent	2,804	4,474
Personal Banking | Home equity loans | New York
Loan delinquencies
Recorded investment in loans receivable	119,459	115,459
90 days or greater delinquent	766	936
Personal Banking | Home equity loans | Ohio
Loan delinquencies
Recorded investment in loans receivable	8,447	9,087
90 days or greater delinquent		35
Personal Banking | Home equity loans | Maryland
Loan delinquencies
Recorded investment in loans receivable	25,732	27,203
90 days or greater delinquent	1,046	1,058
Personal Banking | Home equity loans | Other
Loan delinquencies
Recorded investment in loans receivable	4,906	5,243
90 days or greater delinquent		103
Personal Banking | Other consumer loans
Loan delinquencies
Recorded investment in loans receivable	252,391	242,744
90 days or greater delinquent	2,199	2,450
Personal Banking | Other consumer loans | Pennsylvania
Loan delinquencies
Recorded investment in loans receivable	232,797	225,088
90 days or greater delinquent	2,082	2,388
Personal Banking | Other consumer loans | New York
Loan delinquencies
Recorded investment in loans receivable	11,103	9,961
90 days or greater delinquent	103	55
Personal Banking | Other consumer loans | Ohio
Loan delinquencies
Recorded investment in loans receivable	3,740	3,132
90 days or greater delinquent	14	7
Personal Banking | Other consumer loans | Maryland
Loan delinquencies
Recorded investment in loans receivable	1,396	1,328
Personal Banking | Other consumer loans | Other
Loan delinquencies
Recorded investment in loans receivable	3,355	3,235
Business Banking
Loan delinquencies
Recorded investment in loans receivable	2,219,267	2,159,560
90 days or greater delinquent	14,531	14,574
Business Banking | Pennsylvania
Loan delinquencies
Recorded investment in loans receivable	1,247,548	1,256,791
90 days or greater delinquent	12,603	11,486
Business Banking | New York
Loan delinquencies
Recorded investment in loans receivable	742,924	674,186
90 days or greater delinquent	1,243	1,356
Business Banking | Ohio
Loan delinquencies
Recorded investment in loans receivable	40,987	40,727
90 days or greater delinquent	62
Business Banking | Maryland
Loan delinquencies
Recorded investment in loans receivable	121,876	122,667
90 days or greater delinquent	271	477
Business Banking | Other
Loan delinquencies
Recorded investment in loans receivable	65,932	65,189
90 days or greater delinquent	352	1,255
Business Banking | Commercial real estate loans
Loan delinquencies
Recorded investment in loans receivable	1,859,743	1,801,184
90 days or greater delinquent	12,673	11,099
Business Banking | Commercial real estate loans | Pennsylvania
Loan delinquencies
Recorded investment in loans receivable	973,777	1,013,632
90 days or greater delinquent	10,758	8,827
Business Banking | Commercial real estate loans | New York
Loan delinquencies
Recorded investment in loans receivable	689,043	590,934
90 days or greater delinquent	1,243	1,072
Business Banking | Commercial real estate loans | Ohio
Loan delinquencies
Recorded investment in loans receivable	24,270	24,901
90 days or greater delinquent	49
Business Banking | Commercial real estate loans | Maryland
Loan delinquencies
Recorded investment in loans receivable	115,796	114,850
90 days or greater delinquent	271	270
Business Banking | Commercial real estate loans | Other
Loan delinquencies
Recorded investment in loans receivable	56,857	56,867
90 days or greater delinquent	352	930
Business Banking | Commercial loans
Loan delinquencies
Recorded investment in loans receivable	359,524	358,376
90 days or greater delinquent	1,858	3,475
Business Banking | Commercial loans | Pennsylvania
Loan delinquencies
Recorded investment in loans receivable	273,771	243,159
90 days or greater delinquent	1,845	2,659
Business Banking | Commercial loans | New York
Loan delinquencies
Recorded investment in loans receivable	53,881	83,252
90 days or greater delinquent		284
Business Banking | Commercial loans | Ohio
Loan delinquencies
Recorded investment in loans receivable	16,717	15,826
90 days or greater delinquent	13
Business Banking | Commercial loans | Maryland
Loan delinquencies
Recorded investment in loans receivable	6,080	7,817
90 days or greater delinquent		207
Business Banking | Commercial loans | Other
Loan delinquencies
Recorded investment in loans receivable	$ 9,075	8,322
90 days or greater delinquent		$ 325

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Pension and Other Post-retirement Benefits (Tables)

6 Months Ended

Jun. 30, 2015

Pension and Other Post-retirement Benefits

Schedule of net periodic costs for the defined benefit pension plans and the post retirement healthcare plans

The following table sets forth the net periodic costs for the defined benefit pension plans and post retirement healthcare plans for the periods indicated (in thousands):

Components of net periodic benefit cost

	Quarter ended June 30,
	Pension benefits					Other post-retirement benefits
	2015			2014		2015	2014
Service cost	$	1,430		1,035		—	—
Interest cost	1,531			1,457		15	17
Expected return on plan assets	(2,593		)	(2,416	)	—	—
Amortization of prior service cost	(581		)	(581	)	—	—
Amortization of the net loss	925			357		15	12
Net periodic (benefit)/ cost	$	712		(148	)	30	29

Components of net periodic benefit cost

	Six months ended June 30,
	Pension benefits					Other post-retirement benefits
	2015			2014		2015	2014
Service cost	$	2,860		2,070		—	—
Interest cost	3,062			2,914		30	33
Expected return on plan assets	(5,186		)	(4,832	)	—	—
Amortization of prior service cost	(1,162		)	(1,162	)	—	—
Amortization of the net loss	1,850			713		30	24
Net periodic (benefit)/ cost	$	1,424		(297	)	60	57

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Disclosures About Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Disclosures About Fair Value of Financial Instruments

Schedule of the carrying amount and estimated fair value of the entity's financial instruments included in the consolidated statement of financial condition

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the consolidated statement of financial condition at June 30, 2015 (in thousands):

	Carrying		Estimated
	amount		fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	292,948	292,948	292,948	—	—
Securities available-for-sale	861,157		861,157	1,932	850,002	9,223
Securities held-to-maturity	61,464		62,957	—	62,957	—
Loans receivable, net	6,065,600		6,389,381	—	—	6,389,381
Accrued interest receivable	18,682		18,682	18,682	—	—
FHLB Stock	38,066		38,066	—	—	—
Total financial assets	$	7,337,917	7,663,191	313,562	912,959	6,398,604
Financial liabilities:
Savings and checking deposits	$	4,296,954	4,296,954	4,296,954	—	—
Time deposits	1,397,528		1,413,605	—	—	1,413,605
Borrowed funds	899,056		925,318	138,687	—	786,631
Junior subordinated debentures	103,094		108,627	—	—	108,627
Cash flow hedges - swaps	5,454		5,454	—	5,454	—
Accrued interest payable	1,302		1,302	1,302	—	—
Total financial liabilities	$	6,703,388	6,751,260	4,436,943	5,454	2,308,863

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the consolidated statement of financial condition at December 31, 2014 (in thousands):

	Carrying		Estimated
	amount		fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	240,706	240,706	240,706	—	—
Securities available-for-sale	912,371		912,371	3,157	898,617	10,597
Securities held-to-maturity	103,695		106,292	—	106,292	—
Loans receivable, net	5,922,373		6,240,079	—	—	6,240,079
Accrued interest receivable	18,623		18,623	18,623	—	—
FHLB Stock	33,293		33,293	—	—	—
Total financial assets	$	7,231,061	7,551,364	262,486	1,004,909	6,250,676
Financial liabilities:
Savings and checking accounts	$	4,154,228	4,154,228	4,154,228	—	—
Time deposits	1,478,314		1,498,539	—	—	1,498,539
Borrowed funds	888,109		919,612	162,714	—	756,898
Junior subordinated debentures	103,094		109,435	—	—	109,435
Cash flow hedges - swaps	6,273		6,273	—	6,273	—
Accrued interest payable	936		936	936	—	—
Total financial liabilities	$	6,630,954	6,689,023	4,317,878	6,273	2,364,872

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table represents assets and liabilities measured at fair value on a recurring basis at June 30, 2015 (in thousands):

						Total
						assets at
	Level 1		Level 2		Level 3	fair value
Equity securities	$	1,932	—		—	1,932
Debt securities:
U.S. government and agencies	—		21		—	21
Government sponsored enterprises	—		344,964		—	344,964
States and political subdivisions	—		62,949		—	62,949
Corporate	—		9,707		9,223	18,930
Total debt securities	—		417,641		9,223	426,864
Residential mortgage-backed securities:
GNMA	—		26,977		—	26,977
FNMA	—		66,057		—	66,057
FHLMC	—		37,566		—	37,566
Non-agency	—		619		—	619
Collateralized mortgage obligations:
GNMA	—		6,832		—	6,832
FNMA	—		124,459		—	124,459
FHLMC	—		157,772		—	157,772
SBA	—		8,966		—	8,966
Non-agency	—		3,113		—	3,113
Total mortgage-backed securities	—		432,361		—	432,361
Interest rate swaps	—		(5,454	)	—	(5,454	)
Total assets and liabilities	$	1,932	844,548		9,223	855,703

The following table represents assets and liabilities measured at fair value on a recurring basis at December 31, 2014 (in thousands):

						Total
						assets at
	Level 1		Level 2		Level 3	fair value
Equity securities	$	3,157	—		—	3,157
Debt securities:
U.S. government and agencies	—		25		—	25
Government sponsored enterprises	—		333,505		—	333,505
States and political subdivisions	—		70,145		—	70,145
Corporate	—		9,830		10,597	20,427
Total debt securities	—		413,505		10,597	424,102
Residential mortgage-backed securities:
GNMA	—		29,216		—	29,216
FNMA	—		73,497		—	73,497
FHLMC	—		42,119		—	42,119
Non-agency	—		643		—	643
Collateralized mortgage obligations:
GNMA	—		8,329		—	8,329
FNMA	—		139,150		—	139,150
FHLMC			178,698			178,698
SBA	—		10,052		—	10,052
Non-agency	—		3,408		—	3,408
Total mortgage-backed securities	—		485,112		—	485,112
Interest rate swaps	—		(6,273	)	—	(6,273	)
Total assets and liabilities	$	3,157	892,344		10,597	906,098

Schedule of reconciliation of debt securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated (in thousands):

	Quarter ended				Six months ended
	June 30, 2015			June 30, 2014	June 30, 2015		June 30, 2014
Beginning balance	$	10,306		12,391	10,597		12,251
Total net realized investment gains/ (losses) and net change in unrealized appreciation/ (depreciation):
Included in net income as OTTI	—			—	—		—
Included in other comprehensive income	(1,083		)	152	(1,374	)	292
Purchases	—			—	—		—
Sales	—			—	—		—
Transfers in to Level 3	—			—	—		—
Transfers out of Level 3	—			—	—		—
Ending balance	$	9,223		12,543	9,223		12,543

Schedule of fair value measurement for nonrecurring assets

The following table represents the fair value measurement for nonrecurring assets at June 30, 2015 (in thousands):

					Total
					assets at
	Level 1		Level 2	Level 3	fair value
Loans measured for impairment	$	—	—	43,254	43,254
Real estate owned	—		—	13,864	13,864
Total assets	$	—	—	57,118	57,118

The following table represents the fair value measurement for nonrecurring assets at December 31, 2014 (in thousands):

					Total
					assets at
	Level 1		Level 2	Level 3	fair value
Loans measured for impairment	$	—	—	54,729	54,729
Real estate owned	—		—	16,759	16,759
Total assets	$	—	—	71,488	71,488

Schedule of quantitative information about assets measured at fair value on a recurring and nonrecurring basis for Level 3 Fair Value Measurements

The table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at June 30, 2015 (dollar amounts in thousands):

	Fair value		Valuation techniques	Significant unobservable inputs	Range (weighted average)
Debt securities	$	9,223	Discounted cash flow	Discount margin Default rates Prepayment speeds	0.35% to 2.10% (0.69%) 1.00% 1.00% annually
Loans measured for impairment	43,254		Appraisal value (1)	Estimated cost to sell	10%
			Discounted cash flow	Discount rate	3.75% to 6.50% (5.13%)
Real estate owned	13,864		Appraisal value (1)	Estimated cost to sell	10%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Other comprehensive income, tax (in dollars)	$ 915	$ (1,846)	$ (1,091)	$ (4,267)
Stock-based compensation expense, tax benefits (in dollars)			$ 6
Dividends paid, per share (in dollars per share)	$ 0.14	$ 1.13	$ 0.28	$ 1.36

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Guaranteed Preferred Beneficial Interests in Company's Junior Subordinated Deferrable Interest Debentures (Trust-Preferred Securities) and Interest Rate Swap Agreements (Tables)

6 Months Ended

Jun. 30, 2015

Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust-Preferred Securities) and Interest Rate Swaps

Schedule of liability derivatives included in other liabilities

The following table shows liability derivatives, included in other liabilities, at June 30, 2015 and December 31, 2014 (in thousands):

	June 30,		December 31,
	2015		2014
Fair value	$	5,454	6,273
Notional amount	75,000		75,000
Collateral posted	6,105		6,805

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Investment securities and impairment of investment securities (Details 4) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Cumulative roll forward of credit related impairment losses recognized in earnings for debt securities held and not intended to be sold:
Beginning balance	$ 8,865	$ 10,334	$ 8,894	$ 10,342
Reduction for losses realized during the period	(16)	(170)	(45)	(178)
Reduction for securities called realized during the period	(360)		(360)
Ending balance	$ 8,489	$ 10,164	$ 8,489	$ 10,164

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Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Changes in the carrying amount of goodwill
Balance at the beginning of the period	$ 175,323	$ 174,644
Goodwill acquired	175	679
Balance at the end of the period	175,498	175,323
Community Banks
Changes in the carrying amount of goodwill
Balance at the beginning of the period	173,710	173,031
Goodwill acquired	175	679
Balance at the end of the period	173,885	173,710
Consumer Finance
Changes in the carrying amount of goodwill
Balance at the beginning of the period	1,613	1,613
Balance at the end of the period	$ 1,613	$ 1,613

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 84,000	$ 87,401
Interest-earning deposits in other financial institutions	208,311	152,671
Federal funds sold and other short-term investments	637	634
Marketable securities available-for-sale (amortized cost of $854,147 and $906,702)	861,157	912,371
Marketable securities held-to-maturity (fair value of $62,957 and $106,292)	61,464	103,695
Total cash and investments	1,215,569	1,256,772
Personal Banking:
Residential mortgage loans	2,597,170	2,521,456
Home equity loans	1,055,829	1,066,131
Other consumer loans	252,391	242,744
Total Personal Banking	3,905,390	3,830,331
Business Banking:
Commercial real estate loans	1,859,743	1,801,184
Commercial loans	359,524	358,376
Total Business Banking	2,219,267	2,159,560
Total loans	6,124,657	5,989,891
Allowance for loan losses	(59,057)	(67,518)
Total loans, net	6,065,600	5,922,373
Federal Home Loan Bank stock, at cost	38,066	33,293
Accrued interest receivable	18,682	18,623
Real estate owned, net	13,864	16,759
Premises and equipment, net	142,302	143,909
Bank owned life insurance	146,283	144,362
Goodwill	175,498	175,323
Other intangible assets	2,759	3,033
Other assets	45,887	60,586
Total assets	7,864,510	7,775,033
Liabilities:
Noninterest-bearing checking deposits	962,347	891,248
Interest-bearing checking deposits	928,417	874,623
Money market deposit accounts	1,143,199	1,179,070
Savings deposits	1,262,991	1,209,287
Time deposits	1,397,528	1,478,314
Total deposits	5,694,482	5,632,542
Borrowed funds	899,056	888,109
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities	103,094	103,094
Advances by borrowers for taxes and insurance	41,763	30,507
Accrued interest payable	1,302	936
Other liabilities	56,463	57,198
Total liabilities	$ 6,796,160	$ 6,712,386
Shareholders' equity:
Preferred stock, $0.01 par value: 50,000,000 authorized, no shares issued
Common stock, $0.01 par value: 500,000,000 shares authorized, 94,740,749 and 94,721,453 shares issued, respectively	$ 947	$ 947
Paid-in capital	624,321	626,134
Retained earnings	487,150	481,577
Unallocated common stock of Employee Stock Ownership Plan	(21,485)	(21,641)
Accumulated other comprehensive loss	(22,583)	(24,370)
Total shareholders' equity	1,068,350	1,062,647
Total liabilities and shareholders' equity	$ 7,864,510	$ 7,775,033

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Loans receivable (Details 5) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans 90 or more days delinquent	$ 37,471	$ 41,326
Nonaccrual loans less than 90 days delinquent	20,525	38,482
Loans less than 90 days delinquent reviewed for impairment	28,696	31,666
TDRs less than 90 days delinquent not included elsewhere	28,785	25,705
Total impaired loans	115,477	137,179
Average recorded investment in impaired loans	135,285	159,638
Interest income recognized on impaired loans	2,609	5,871
Personal Banking
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans 90 or more days delinquent	22,940	26,752
Nonaccrual loans less than 90 days delinquent	5,157	6,831
TDRs less than 90 days delinquent not included elsewhere	7,364	7,551
Total impaired loans	35,461	41,134
Average recorded investment in impaired loans	37,637	42,363
Interest income recognized on impaired loans	700	1,368
Personal Banking | Residential mortgage loans
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans 90 or more days delinquent	16,125	17,696
Nonaccrual loans less than 90 days delinquent	2,852	3,498
TDRs less than 90 days delinquent not included elsewhere	5,237	5,845
Total impaired loans	24,214	27,039
Average recorded investment in impaired loans	24,895	28,227
Interest income recognized on impaired loans	433	817
Personal Banking | Home equity loans
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans 90 or more days delinquent	4,616	6,606
Nonaccrual loans less than 90 days delinquent	1,866	2,963
TDRs less than 90 days delinquent not included elsewhere	2,127	1,706
Total impaired loans	8,609	11,275
Average recorded investment in impaired loans	10,097	11,753
Interest income recognized on impaired loans	223	485
Personal Banking | Other consumer loans
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans 90 or more days delinquent	2,199	2,450
Nonaccrual loans less than 90 days delinquent	439	370
Total impaired loans	2,638	2,820
Average recorded investment in impaired loans	2,645	2,383
Interest income recognized on impaired loans	44	66
Business Banking
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans 90 or more days delinquent	14,531	14,574
Nonaccrual loans less than 90 days delinquent	15,368	31,651
Loans less than 90 days delinquent reviewed for impairment	28,696	31,666
TDRs less than 90 days delinquent not included elsewhere	21,421	18,154
Total impaired loans	80,016	96,045
Average recorded investment in impaired loans	97,648	117,275
Interest income recognized on impaired loans	1,909	4,503
Business Banking | Commercial real estate loans
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans 90 or more days delinquent	12,673	11,099
Nonaccrual loans less than 90 days delinquent	9,967	27,548
Loans less than 90 days delinquent reviewed for impairment	26,960	26,400
TDRs less than 90 days delinquent not included elsewhere	16,615	12,128
Total impaired loans	66,215	77,175
Average recorded investment in impaired loans	79,416	90,187
Interest income recognized on impaired loans	1,564	3,589
Business Banking | Commercial loans
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans 90 or more days delinquent	1,858	3,475
Nonaccrual loans less than 90 days delinquent	5,401	4,103
Loans less than 90 days delinquent reviewed for impairment	1,736	5,266
TDRs less than 90 days delinquent not included elsewhere	4,806	6,026
Total impaired loans	13,801	18,870
Average recorded investment in impaired loans	18,232	27,088
Interest income recognized on impaired loans	$ 345	$ 914

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unrealized holding gains/ (losses), tax	$ 1,139	$ (1,997)	$ (746)	$ (5,576)
Reclassification adjustment for gains included in net income, tax	179	130	222	1,348
Change in fair value of interest rate swaps, tax	(263)	(53)	(287)	(188)
Amortization of prior service costs included in net income, tax	$ (140)	$ 74	$ (280)	$ 149

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Disclosures About Fair Value of Financial Instruments (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	$ 861,157	$ 912,371
Level 1
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	1,932	3,157
Total financial assets	313,562	262,486
Level 2
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	850,002	898,617
Interest rate swaps	(5,454)	(6,273)
Total financial assets	912,959	1,004,909
Level 3
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	9,223	10,597
Total financial assets	6,398,604	6,250,676
Measured on recurring basis
Assets and liabilities measured at fair value on a recurring basis
Total financial assets	855,703	906,098
Measured on recurring basis | Equity securities
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	1,932	3,157
Measured on recurring basis | Debt securities
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	426,864	424,102
Measured on recurring basis | Debt securities | U.S. government and agencies
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	21	25
Measured on recurring basis | Debt securities | Debt issued by government sponsored enterprises
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	344,964	333,505
Measured on recurring basis | Debt securities | Municipal securities
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	62,949	70,145
Measured on recurring basis | Debt securities | Corporate debt issues
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	18,930	20,427
Measured on recurring basis | Mortgage-backed securities
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	432,361	485,112
Measured on recurring basis | Residential mortgage-backed securities | GNMA
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	26,977	29,216
Measured on recurring basis | Residential mortgage-backed securities | FNMA
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	66,057	73,497
Measured on recurring basis | Residential mortgage-backed securities | FHLMC
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	37,566	42,119
Measured on recurring basis | Residential mortgage-backed securities | Non-agency CMOs
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	619	643
Measured on recurring basis | Collateralized mortgage obligations | GNMA
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	6,832	8,329
Measured on recurring basis | Collateralized mortgage obligations | FNMA
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	124,459	139,150
Measured on recurring basis | Collateralized mortgage obligations | FHLMC
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	157,772	178,698
Measured on recurring basis | Collateralized mortgage obligations | SBA
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	8,966	10,052
Measured on recurring basis | Collateralized mortgage obligations | Non-agency CMOs
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	3,113	3,408
Measured on recurring basis | Interest rate swap agreements
Assets and liabilities measured at fair value on a recurring basis
Interest rate swaps	(5,454)	(6,273)
Measured on recurring basis | Level 1
Assets and liabilities measured at fair value on a recurring basis
Total financial assets	1,932	3,157
Measured on recurring basis | Level 1 | Equity securities
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	1,932	3,157
Measured on recurring basis | Level 2
Assets and liabilities measured at fair value on a recurring basis
Total financial assets	844,548	892,344
Measured on recurring basis | Level 2 | Debt securities
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	417,641	413,505
Measured on recurring basis | Level 2 | Debt securities | U.S. government and agencies
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	21	25
Measured on recurring basis | Level 2 | Debt securities | Debt issued by government sponsored enterprises
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	344,964	333,505
Measured on recurring basis | Level 2 | Debt securities | Municipal securities
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	62,949	70,145
Measured on recurring basis | Level 2 | Debt securities | Corporate debt issues
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	9,707	9,830
Measured on recurring basis | Level 2 | Mortgage-backed securities
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	432,361	485,112
Measured on recurring basis | Level 2 | Residential mortgage-backed securities | GNMA
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	26,977	29,216
Measured on recurring basis | Level 2 | Residential mortgage-backed securities | FNMA
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	66,057	73,497
Measured on recurring basis | Level 2 | Residential mortgage-backed securities | FHLMC
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	37,566	42,119
Measured on recurring basis | Level 2 | Residential mortgage-backed securities | Non-agency CMOs
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	619	643
Measured on recurring basis | Level 2 | Collateralized mortgage obligations | GNMA
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	6,832	8,329
Measured on recurring basis | Level 2 | Collateralized mortgage obligations | FNMA
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	124,459	139,150
Measured on recurring basis | Level 2 | Collateralized mortgage obligations | FHLMC
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	157,772	178,698
Measured on recurring basis | Level 2 | Collateralized mortgage obligations | SBA
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	8,966	10,052
Measured on recurring basis | Level 2 | Collateralized mortgage obligations | Non-agency CMOs
Assets and liabilities measured at fair value on a recurring basis
Mortgage-backed securities	3,113	3,408
Measured on recurring basis | Level 2 | Interest rate swap agreements
Assets and liabilities measured at fair value on a recurring basis
Interest rate swaps	(5,454)	(6,273)
Measured on recurring basis | Level 3
Assets and liabilities measured at fair value on a recurring basis
Total financial assets	9,223	10,597
Measured on recurring basis | Level 3 | Debt securities
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	9,223	10,597
Measured on recurring basis | Level 3 | Debt securities | Corporate debt issues
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	$ 9,223	$ 10,597

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Basis of Presentation and Informational Disclosures (Details 2) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended
	May. 20, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock-Based Compensation
Vesting period				10 years
Stock-based aggregate disclosure
Stock-based compensation expense		$ 1.4	$ 1.7	$ 2.3	$ 3.0
Income Taxes- Uncertain Tax Positions
Unrecognized tax benefits liability		0.0		0.0
Accrued amount of payment of interest or penalties		0.0		0.0
Stock options
Stock-Based Compensation
Exercise price (in dollars per share)	$ 12.37
Grant date fair value (in dollars per share)	$ 1.14
Stock-based aggregate disclosure
Compensation expense for unvested common share awards which is yet to be recognized		4.8		4.8
Stock options | Employees
Stock-Based Compensation
Shares awarded	600,570
Stock options | Director
Stock-Based Compensation
Shares awarded	64,800
Restricted common shares
Stock-Based Compensation
Grant date fair value (in dollars per share)	$ 12.31
Stock-based aggregate disclosure
Compensation expense for unvested common share awards which is yet to be recognized		$ 16.3		$ 16.3
Restricted common shares | Employees
Stock-Based Compensation
Shares awarded	282,050
Restricted common shares | Director
Stock-Based Compensation
Shares awarded	24,300

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Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Changes in accumulated other comprehensive income by component
Balance at the beginning of the period	$ (21,223)	$ (8,095)	$ (24,370)	$ (11,900)
Other comprehensive income before reclassification adjustments	(1,300)	3,221	1,696	9,068
Amounts reclassified from accumulated other comprehensive income	(60)	(342)	91	(2,384)
Other comprehensive income/ (loss)	(1,360)	2,879	1,787	6,684
Balance at the end of the period	(22,583)	(5,216)	(22,583)	(5,216)
Income tax expense related to compensation and employee benefits	(140)	74	(280)	149
Unrealized gains and losses on securities available-for-sale
Changes in accumulated other comprehensive income by component
Balance at the beginning of the period	6,345	459	3,461	(3,233)
Other comprehensive income before reclassification adjustments	(1,788)	3,123	1,164	8,719
Amounts reclassified from accumulated other comprehensive income	(279)	(204)	(347)	(2,108)
Other comprehensive income/ (loss)	(2,067)	2,919	817	6,611
Balance at the end of the period	4,278	3,378	4,278	3,378
Realized gains (losses) on securities, net of tax	458	334	(569)	3,456
Tax on realized gains on securities	(179)	(130)	(222)	(1,348)
Change in fair value of interest rate swaps
Changes in accumulated other comprehensive income by component
Balance at the beginning of the period	(4,034)	(4,973)	(4,078)	(5,224)
Other comprehensive income before reclassification adjustments	488	98	532	349
Other comprehensive income/ (loss)	488	98	532	349
Balance at the end of the period	(3,546)	(4,875)	(3,546)	(4,875)
Change in defined benefit pension plans
Changes in accumulated other comprehensive income by component
Balance at the beginning of the period	(23,534)	(3,581)	(23,753)	(3,443)
Amounts reclassified from accumulated other comprehensive income	219	(138)	438	(276)
Other comprehensive income/ (loss)	219	(138)	438	(276)
Balance at the end of the period	(23,315)	(3,719)	(23,315)	(3,719)
Amortization of prior service cost (compensation and employee benefits)	581	581	1,162	1,162
Amortization of net loss (compensation and employee benefits)	(940)	(369)	(1,880)	(737)
Income tax expense related to compensation and employee benefits	$ 140	$ (74)	$ 280	$ (149)

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Changes in Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2015

Changes in Accumulated Other Comprehensive Income

Changes in Accumulated Other Comprehensive Income

(12)Changes in Accumulated Other Comprehensive Income

The following table shows the changes in accumulated other comprehensive income by component for the periods indicated (in thousands):

	For the quarter ended June 30, 2015
	Unrealized gains and (losses) on securities available- for-sale			Change in fair value of interest rate swaps		Change in defined benefit pension plans		Total
Balance as of March 31, 2015	$	6,345		(4,034	)	(23,534	)	(21,223	)
Other comprehensive income before reclassification adjustments	(1,788		)	488		—		(1,300	)
Amounts reclassified from accumulated other comprehensive income (1), (2)	(279		)	—		219		(60	)
Net other comprehensive loss	(2,067		)	488		219		(1,360	)
Balance as of June 30, 2015	$	4,278		(3,546	)	(23,315	)	(22,583	)

	For the quarter ended June 30, 2014
	Unrealized gains and (losses) on securities available- for-sale			Change in fair value of interest rate swaps		Change in defined benefit pension plans		Total
Balance as of March 31, 2014	$	459		(4,973	)	(3,581	)	(8,095	)
Other comprehensive income before reclassification adjustments	3,123			98		—		3,221
Amounts reclassified from accumulated other comprehensive income (3), (4)	(204		)	—		(138	)	(342	)
Net other comprehensive income	2,919			98		(138	)	2,879
Balance as of June 30, 2014	$	3,378		(4,875	)	(3,719	)	(5,216	)

(1) Consists of realized gains on securities (gain on sales of investments, net) of $458, net of tax (income tax expense) of $(179).

(2) Consists of amortization of prior service cost (compensation and employee benefits) of $581 and amortization of net loss (compensation and employee benefits) of $(940), net of tax (income tax expense) of $140.  See note 8.

(3) Consists of realized gains on securities (gain on sales of investments, net) of $334, net of tax (income tax expense) of $(130).

(4) Consists of amortization of prior service cost (compensation and employee benefits) of $581 and amortization of net loss (compensation and employee benefits) of $(369), net of tax (income tax expense) of $(74).  See note 8.

The following table shows the changes in accumulated other comprehensive income by component for the periods indicated (in thousands):

	For the six months ended June 30, 2015
	Unrealized gains and (losses) on securities available- for-sale			Change in fair value of interest rate swaps		Change in defined benefit pension plans		Total
Balance as of December 31, 2014	$	3,461		(4,078	)	(23,753	)	(24,370	)
Other comprehensive income before reclassification adjustments	1,164			532		—		1,696
Amounts reclassified from accumulated other comprehensive income (1), (2)	(347		)	—		438		91
Net other comprehensive income	817			532		438		1,787
Balance as of June 30, 2015	$	4,278		(3,546	)	(23,315	)	(22,583	)

	For the six months ended June 30, 2014
	Unrealized gains and (losses) on securities available- for-sale			Change in fair value of interest rate swaps		Change in defined benefit pension plans		Total
Balance as of December 31, 2013	$	(3,233	)	(5,224	)	(3,443	)	(11,900	)
Other comprehensive income before reclassification adjustments	8,719			349		—		9,068
Amounts reclassified from accumulated other comprehensive income (3), (4)	(2,108		)	—		(276	)	(2,384	)
Net other comprehensive income	6,611			349		(276	)	6,684
Balance as of June 30, 2014	$	3,378		(4,875	)	(3,719	)	(5,216	)

(1) Consists of realized gains on securities (gain on sales of investments, net) of $569, net of tax (income tax expense) of $(222).

(2) Consists of amortization of prior service cost (compensation and employee benefits) of $1,162 and amortization of net loss (compensation and employee benefits) of $(1,880), net of tax (income tax expense) of $280. See note 8.

(3) Consists of realized gains on securities (gain on sales of investments, net) of $3,456, net of tax (income tax expense) of $(1,348).

(4) Consists of amortization of prior service cost (compensation and employee benefits) of $1,162 and amortization of net loss (compensation and employee benefits) of $(737), net of tax (income tax expense) of $(149). See note 8.

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Business Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) item	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) item	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Business Segments
Number of reportable business segments | item			2
Number of consumer finance offices | item	51		51
Interest income	$ 75,970	$ 76,987	$ 152,850	$ 152,313
Interest expense	13,792	14,214	27,691	28,418
Provision for loan losses	1,050	8,285	1,950	15,770
Noninterest income	16,525	16,427	31,150	35,808
Noninterest expense	55,135	53,806	108,846	106,969
Income tax expense/ (benefit)	7,213	4,435	14,038	9,679
Net income	15,305	12,674	31,475	27,285
Total assets	7,864,510	7,900,628	7,864,510	7,900,628	$ 7,775,033
All Other
Business Segments
Interest income	205	220	424	543
Interest expense	429	475	865	904
Noninterest income	34	13	63	2,349
Noninterest expense	372	318	690	698
Income tax expense/ (benefit)	(404)	(412)	(789)	(7)
Net income	(740)	(739)	(1,436)	100
Total assets	15,889	22,442	15,889	22,442
Intersegment
Business Segments
Interest income	(582)	(591)	(1,157)	(1,197)
Community Banks
Business Segments
Interest income	71,273	72,061	143,604	142,405
Interest expense	12,781	13,148	25,669	26,317
Provision for loan losses	850	7,500	1,100	14,350
Noninterest income	16,080	15,932	30,406	32,689
Noninterest expense	51,682	50,540	102,122	100,402
Income tax expense/ (benefit)	7,183	4,489	14,218	9,002
Net income	15,439	12,907	32,058	26,220
Total assets	7,740,273	7,772,277	7,740,273	7,772,277
Community Banks | Intersegment
Business Segments
Interest income	582	591	1,157	1,197
Consumer Finance
Business Segments
Interest income	4,492	4,706	8,822	9,365
Interest expense	582	591	1,157	1,197
Provision for loan losses	200	785	850	1,420
Noninterest income	411	482	681	770
Noninterest expense	3,081	2,948	6,034	5,869
Income tax expense/ (benefit)	434	358	609	684
Net income	606	506	853	965
Total assets	$ 108,348	$ 105,909	$ 108,348	$ 105,909

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Basis of Presentation and Informational Disclosures (Policies)

6 Months Ended

Jun. 30, 2015

Basis of Presentation and Informational Disclosures

Stock-Based Compensation

Stock-Based Compensation

On May 20, 2015, we awarded employees 600,570 stock options and directors 64,800 stock options with an exercise price of $12.37 and grant date fair value of $1.14 per stock option.  On May 20, 2015, we also awarded employees 282,050 restricted common shares and directors 24,300 restricted common shares with a grant date fair value of $12.31.  Awarded stock options and common shares vest over a ten-year period with the first vesting occurring on the grant date.  Stock-based compensation expense of $1.4 million and $1.7 million for the quarters ended June 30, 2015 and 2014, respectively, and $2.3 million and $3.0 million for the six months ended June 30, 2015 and 2014, respectively, was recognized in compensation expense relating to our stock benefit plans.  At June 30, 2015 there was compensation expense of $4.8 million to be recognized for awarded but unvested stock options and $16.3 million for unvested common shares.

Income Taxes - Uncertain Tax Positions

Income Taxes- Uncertain Tax Positions

Accounting standards prescribe a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return.  A tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable, based on its technical merits.  The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information.  At June 30, 2015 we had no liability for unrecognized tax benefits.

We recognize interest accrued related to: (1) unrecognized tax benefits in federal and state income taxes and (2) refund claims in other operating income.  We recognize penalties (if any) in federal and state income taxes.  There is no amount accrued for the payment of interest or penalties at June 30, 2015.  We are subject to audit by the Internal Revenue Service and any state in which we conduct business for the tax periods ended December 31, 2013, 2012 and 2011.  We are currently under audit by the state of New York for the tax periods ended December 31, 2013, 2012 and 2011.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In May 2014 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers”. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of this guidance requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and provides five steps to be analyzed to accomplish the core principle. This guidance is effective retrospectively for annual reporting periods beginning after December 15, 2017, including interim periods within those years and early adoption is not permitted.  We are currently evaluating the impact this standard will have on our results of operations and financial position.

In June 2014 the FASB issued ASU 2014-12, “Compensation—Stock Compensation”. This guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Specifically, if the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. Further, the total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. This guidance is effective for annual periods beginning after December 15, 2015, including interim periods within those years and early adoption is permitted.  We do not expect that this standard will have a material impact on our results of operations or financial position.

In February 2015 the FASB issued ASU 2015-02, “Consolidation”. This guidance amends existing standards regarding the evaluation of certain legal entities and their consolidation in the financial statements. The amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities and eliminate the presumption that a general partner should consolidate a limited partnership. The amendments also affect the consolidation analysis of reporting entities that are involved with variable interest entities and provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for annual periods beginning after December 15, 2015, including interim periods within those years and early adoption is permitted.  We do not expect that this standard will have a material impact on our results of operations or financial position.

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income/ (loss)	Unallocated Common Stock of ESOP	Total
Balance at Dec. 31, 2013	$ 943	$ 619,678	$ 569,547	$ (11,900)	$ (23,083)	$ 1,155,185
Balance (in shares) at Dec. 31, 2013	94,243,713
Comprehensive income:
Net Income			27,285			27,285
Other comprehensive income, net of tax of $915, $(1,846), $(1,091) and $(4,267) for the three and six months ending June 30, 2015 and 2014, respectively				6,684		6,684
Total comprehensive income			27,285	6,684		33,969
Exercise of stock options	$ 4	4,459				4,463
Exercise of stock options (in shares)	433,352
Stock-based compensation expense, including tax benefits of $6 for the six months ended June 30, 2015	$ 2	2,076			883	2,961
Stock compensation expense (in shares)	272,630
Dividends paid ($0.14, $1.13, $0.28 and $1.36 per share for the three and six months ending June 30, 2015 and 2014, respectively)			(125,794)			(125,794)
Balance at Jun. 30, 2014	$ 949	626,213	471,038	(5,216)	(22,200)	1,070,784
Balance (in shares) at Jun. 30, 2014	94,949,695
Balance at Mar. 31, 2014	$ 945	622,758	562,933	(8,095)	(22,632)	1,155,909
Balance (in shares) at Mar. 31, 2014	94,464,430
Comprehensive income:
Net Income			12,674			12,674
Other comprehensive income, net of tax of $915, $(1,846), $(1,091) and $(4,267) for the three and six months ending June 30, 2015 and 2014, respectively				2,879		2,879
Total comprehensive income			12,674	2,879		15,553
Exercise of stock options	$ 2	2,167				2,169
Exercise of stock options (in shares)	212,635
Stock-based compensation expense, including tax benefits of $6 for the six months ended June 30, 2015	$ 2	1,288			432	1,722
Stock compensation expense (in shares)	272,630
Dividends paid ($0.14, $1.13, $0.28 and $1.36 per share for the three and six months ending June 30, 2015 and 2014, respectively)			(104,569)			(104,569)
Balance at Jun. 30, 2014	$ 949	626,213	471,038	(5,216)	(22,200)	1,070,784
Balance (in shares) at Jun. 30, 2014	94,949,695
Balance at Dec. 31, 2014	$ 947	626,134	481,577	(24,370)	(21,641)	1,062,647
Balance (in shares) at Dec. 31, 2014	94,721,453
Comprehensive income:
Net Income			31,475			31,475
Other comprehensive income, net of tax of $915, $(1,846), $(1,091) and $(4,267) for the three and six months ending June 30, 2015 and 2014, respectively				1,787		1,787
Total comprehensive income			31,475	1,787		33,262
Exercise of stock options	$ 2	2,065				2,067
Exercise of stock options (in shares)	210,746
Stock-based compensation expense, including tax benefits of $6 for the six months ended June 30, 2015	$ 3	2,120			156	2,279
Stock compensation expense (in shares)	306,350
Share repurchases	$ (5)	(5,998)				(6,003)
Share repurchases (in shares)	(497,800)
Dividends paid ($0.14, $1.13, $0.28 and $1.36 per share for the three and six months ending June 30, 2015 and 2014, respectively)			(25,902)			(25,902)
Balance at Jun. 30, 2015	$ 947	624,321	487,150	(22,583)	(21,485)	1,068,350
Balance (in shares) at Jun. 30, 2015	94,740,749
Balance at Mar. 31, 2015	$ 946	624,584	484,774	(21,223)	(21,565)	1,067,516
Balance (in shares) at Mar. 31, 2015	94,553,350
Comprehensive income:
Net Income			15,305			15,305
Other comprehensive income, net of tax of $915, $(1,846), $(1,091) and $(4,267) for the three and six months ending June 30, 2015 and 2014, respectively				(1,360)		(1,360)
Total comprehensive income			15,305	(1,360)		13,945
Exercise of stock options		632				632
Exercise of stock options (in shares)	60,849
Stock-based compensation expense, including tax benefits of $6 for the six months ended June 30, 2015	$ 3	1,316			80	1,399
Stock compensation expense (in shares)	306,350
Share repurchases	$ (2)	(2,211)				(2,213)
Share repurchases (in shares)	(179,800)
Dividends paid ($0.14, $1.13, $0.28 and $1.36 per share for the three and six months ending June 30, 2015 and 2014, respectively)			(12,929)			(12,929)
Balance at Jun. 30, 2015	$ 947	$ 624,321	$ 487,150	$ (22,583)	$ (21,485)	$ 1,068,350
Balance (in shares) at Jun. 30, 2015	94,740,749

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
Marketable securities available-for-sale, amortized cost (in dollars)	$ 854,147	$ 906,702
Marketable securities held-to-maturity, fair value (in dollars)	$ 62,957	$ 106,292
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	94,740,749	94,721,453

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Earnings Per Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share

Earnings Per Share

(7)Earnings Per Share

Basic earnings per common share (EPS) is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period, without considering any dilutive items. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Stock options to purchase 1,711,080 shares of common stock with a weighted average exercise price of $12.64 per share were outstanding during the quarter ended June 30, 2015 but were not included in the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common shares of $12.32. Stock options to purchase 4,344,225 shares of common stock with a weighted average exercise price of $12.42 per share were outstanding during the six months ended June 30, 2015 but were not included in the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common shares of $12.11. All stock options outstanding during the quarter and six months ended June 30, 2014 were included in the computation of diluted earnings per share because the stock options’ exercise price was less than the average market price of the common shares of $13.72 and $14.09, respectively.

The computation of basic and diluted earnings per share follows (in thousands, except share data and per share amounts):

	Quarter ended			Six months ended
	June 30,			June 30,
	2015		2014	2015	2014
Reported net income	$	15,305	12,674	31,475	27,285
Weighted average common shares outstanding	91,538,172		91,491,654	91,585,766	91,324,169
Dilutive potential shares due to effect of stock options	459,833		1,039,488	364,450	1,118,462
Total weighted average common shares and dilutive potential shares	91,998,005		92,531,142	91,950,216	92,442,631
Basic earnings per share:	$	0.17	0.14	0.34	0.30
Diluted earnings per share:	$	0.17	0.14	0.34	0.30

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information
Entity Registrant Name	Northwest Bancshares, Inc.
Entity Central Index Key	0001471265
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		94,613,110
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2

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Pension and Other Post-retirement Benefits

6 Months Ended

Jun. 30, 2015

Pension and Other Post-retirement Benefits

Pension and Other Post-retirement Benefits

(8)Pension and Other Post-retirement Benefits

The following table sets forth the net periodic costs for the defined benefit pension plans and post retirement healthcare plans for the periods indicated (in thousands):

Components of net periodic benefit cost

	Quarter ended June 30,
	Pension benefits					Other post-retirement benefits
	2015			2014		2015	2014
Service cost	$	1,430		1,035		—	—
Interest cost	1,531			1,457		15	17
Expected return on plan assets	(2,593		)	(2,416	)	—	—
Amortization of prior service cost	(581		)	(581	)	—	—
Amortization of the net loss	925			357		15	12
Net periodic (benefit)/ cost	$	712		(148	)	30	29

Components of net periodic benefit cost

	Six months ended June 30,
	Pension benefits					Other post-retirement benefits
	2015			2014		2015	2014
Service cost	$	2,860		2,070		—	—
Interest cost	3,062			2,914		30	33
Expected return on plan assets	(5,186		)	(4,832	)	—	—
Amortization of prior service cost	(1,162		)	(1,162	)	—	—
Amortization of the net loss	1,850			713		30	24
Net periodic (benefit)/ cost	$	1,424		(297	)	60	57

We anticipate making a contribution to our defined benefit pension plan of $4.0 million to $8.0 million during the year ending December 31, 2015.

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CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest income:
Loans receivable	$ 70,985	$ 70,726	$ 141,696	$ 140,048
Mortgage-backed securities	2,058	2,666	4,292	5,459
Taxable investment securities	1,604	1,711	4,052	3,067
Tax-free investment securities	1,143	1,598	2,491	3,253
Interest-earning deposits	180	286	319	486
Total interest income	75,970	76,987	152,850	152,313
Interest expense:
Deposits	5,691	6,421	11,457	12,911
Borrowed funds	8,101	7,793	16,234	15,507
Total interest expense	13,792	14,214	27,691	28,418
Net interest income	62,178	62,773	125,159	123,895
Provision for loan losses	1,050	8,285	1,950	15,770
Net interest income after provision for loan losses	61,128	54,488	123,209	108,125
Noninterest income:
Gain on sale of investments	566	349	661	3,697
Service charges and fees	9,228	9,042	17,887	17,450
Trust and other financial services income	3,094	3,055	5,870	6,102
Insurance commission income	2,210	2,237	4,638	4,801
Loss on real estate owned, net	(541)	(562)	(1,587)	(697)
Income from bank owned life insurance	1,008	1,050	1,921	2,051
Mortgage banking income	218	265	458	514
Other operating income	742	991	1,302	1,890
Total noninterest income	16,525	16,427	31,150	35,808
Noninterest expense:
Compensation and employee benefits	28,920	28,543	56,815	56,515
Premises and occupancy costs	5,899	5,740	12,166	12,297
Office operations	3,508	3,868	7,188	7,625
Processing expenses	7,392	6,639	14,597	13,228
Marketing expenses	3,190	2,931	5,166	4,568
Federal deposit insurance premiums	1,286	1,338	2,633	2,635
Professional services	1,652	1,775	3,444	3,837
Amortization of intangible assets	269	331	537	662
Real estate owned expense	514	459	1,206	1,098
Acquisition expense	467		814
Other expenses	2,038	2,182	4,280	4,504
Total noninterest expense	55,135	53,806	108,846	106,969
Income before income taxes	22,518	17,109	45,513	36,964
Provision for income taxes:
Federal and state income taxes	7,213	4,435	14,038	9,679
Net income	$ 15,305	$ 12,674	$ 31,475	$ 27,285
Basic earnings per share (in dollars per share)	$ 0.17	$ 0.14	$ 0.34	$ 0.30
Diluted earnings per share (in dollars per share)	$ 0.17	$ 0.14	$ 0.34	$ 0.30

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Business Segments

6 Months Ended

Jun. 30, 2015

Business Segments

Business Segments

(2)Business Segments

We operate in two reportable business segments: Community Banking and Consumer Finance.  The Community Banking segment provides services traditionally offered by full-service community banks, including business and personal deposit accounts and business and personal loans, as well as insurance, brokerage and investment management and trust services.  The Consumer Finance segment, which is comprised of Northwest Consumer Discount Company, a subsidiary of Northwest, operates 51 offices in Pennsylvania and offers personal installment loans for a variety of consumer and real estate products.  This activity is funded primarily through an intercompany borrowing relationship with Allegheny Services, Inc., a subsidiary of Northwest.  Net income is the primary measure used by management to measure segment performance.  The following tables provide financial information for these reportable segments.  The “All Other” column represents the parent company and elimination entries necessary to reconcile to the consolidated amounts presented in the financial statements.

At or for the quarter ended:

	Community		Consumer
June 30, 2015 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	71,273	4,492	205		75,970
Intersegment interest income	582		—	(582	)	—
Interest expense	12,781		582	429		13,792
Provision for loan losses	850		200	—		1,050
Noninterest income	16,080		411	34		16,525
Noninterest expense	51,682		3,081	372		55,135
Income tax expense (benefit)	7,183		434	(404	)	7,213
Net income	$	15,439	606	(740	)	15,305
Total assets	$	7,740,273	108,348	15,889		7,864,510

	Community		Consumer
June 30, 2014 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	72,061	4,706	220		76,987
Intersegment interest income	591		—	(591	)	—
Interest expense	13,148		591	475		14,214
Provision for loan losses	7,500		785	—		8,285
Noninterest income	15,932		482	13		16,427
Noninterest expense	50,540		2,948	318		53,806
Income tax expense (benefit)	4,489		358	(412	)	4,435
Net income	$	12,907	506	(739	)	12,674
Total assets	$	7,772,277	105,909	22,442		7,900,628

(1)   Eliminations consist of intercompany loans, interest income and interest expense.

At or for the six months ended:

	Community		Consumer
June 30, 2015 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	143,604	8,822	424		152,850
Intersegment interest income	1,157		—	(1,157	)	—
Interest expense	25,669		1,157	865		27,691
Provision for loan losses	1,100		850	—		1,950
Noninterest income	30,406		681	63		31,150
Noninterest expense	102,122		6,034	690		108,846
Income tax expense (benefit)	14,218		609	(789	)	14,038
Net income	$	32,058	853	(1,436	)	31,475
Total assets	$	7,740,273	108,348	15,889		7,864,510

	Community		Consumer
June 30, 2014 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	142,405	9,365	543		152,313
Intersegment interest income	1,197		—	(1,197	)	—
Interest expense	26,317		1,197	904		28,418
Provision for loan losses	14,350		1,420	—		15,770
Noninterest income	32,689		770	2,349		35,808
Noninterest expense	100,402		5,869	698		106,969
Income tax expense (benefit)	9,002		684	(7	)	9,679
Net income	$	26,220	965	100		27,285
Total assets	$	7,772,277	105,909	22,442		7,900,628

(1)   Eliminations consist of intercompany loans, interest income and interest expense.

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Basis of Presentation and Informational Disclosures

6 Months Ended

Jun. 30, 2015

Basis of Presentation and Informational Disclosures

Basis of Presentation and Informational Disclosures

(1)Basis of Presentation and Informational Disclosures

Northwest Bancshares, Inc. (the “Company”) or (“NWBI”), a Maryland corporation headquartered in Warren, Pennsylvania, is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System.  The Company was incorporated to be the successor to Northwest Bancorp, Inc. upon the completion of the mutual-to-stock conversion of Northwest Bancorp, MHC in December 2009.  The primary activity of the Company is the ownership of all of the issued and outstanding common stock of Northwest Bank, a Pennsylvania-chartered savings bank (“Northwest”).  Northwest is regulated by the FDIC and the Pennsylvania Department of Banking.  At June 30, 2015, Northwest operated 161 community-banking offices throughout Pennsylvania, western New York, eastern Ohio and Maryland.

The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiary, Northwest, and Northwest’s subsidiaries Northwest Settlement Agency, LLC, Northwest Consumer Discount Company, Northwest Financial Services, Inc., Northwest Advisors, Inc., Northwest Capital Group, Inc., Allegheny Services, Inc., Great Northwest Corporation, Boetger & Associates, Inc. and The Bert Company. The unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information or footnotes required for complete annual financial statements.  In the opinion of management, all adjustments necessary for the fair presentation of the Company’s financial position and results of operations have been included.  The consolidated statements have been prepared using the accounting policies described in the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 updated, as required, for any new pronouncements or changes.

Certain items previously reported have been reclassified to conform with the current year’s reporting format.

The results of operations for the quarter and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, or any other period.

Stock-Based Compensation

On May 20, 2015, we awarded employees 600,570 stock options and directors 64,800 stock options with an exercise price of $12.37 and grant date fair value of $1.14 per stock option.  On May 20, 2015, we also awarded employees 282,050 restricted common shares and directors 24,300 restricted common shares with a grant date fair value of $12.31.  Awarded stock options and common shares vest over a ten-year period with the first vesting occurring on the grant date.  Stock-based compensation expense of $1.4 million and $1.7 million for the quarters ended June 30, 2015 and 2014, respectively, and $2.3 million and $3.0 million for the six months ended June 30, 2015 and 2014, respectively, was recognized in compensation expense relating to our stock benefit plans.  At June 30, 2015 there was compensation expense of $4.8 million to be recognized for awarded but unvested stock options and $16.3 million for unvested common shares.

Income Taxes- Uncertain Tax Positions

Accounting standards prescribe a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return.  A tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable, based on its technical merits.  The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information.  At June 30, 2015 we had no liability for unrecognized tax benefits.

We recognize interest accrued related to: (1) unrecognized tax benefits in federal and state income taxes and (2) refund claims in other operating income.  We recognize penalties (if any) in federal and state income taxes.  There is no amount accrued for the payment of interest or penalties at June 30, 2015.  We are subject to audit by the Internal Revenue Service and any state in which we conduct business for the tax periods ended December 31, 2013, 2012 and 2011.  We are currently under audit by the state of New York for the tax periods ended December 31, 2013, 2012 and 2011.

Recent Accounting Pronouncements

In May 2014 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers”. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of this guidance requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and provides five steps to be analyzed to accomplish the core principle. This guidance is effective retrospectively for annual reporting periods beginning after December 15, 2017, including interim periods within those years and early adoption is not permitted.  We are currently evaluating the impact this standard will have on our results of operations and financial position.

In June 2014 the FASB issued ASU 2014-12, “Compensation—Stock Compensation”. This guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Specifically, if the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. Further, the total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. This guidance is effective for annual periods beginning after December 15, 2015, including interim periods within those years and early adoption is permitted.  We do not expect that this standard will have a material impact on our results of operations or financial position.

In February 2015 the FASB issued ASU 2015-02, “Consolidation”. This guidance amends existing standards regarding the evaluation of certain legal entities and their consolidation in the financial statements. The amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities and eliminate the presumption that a general partner should consolidate a limited partnership. The amendments also affect the consolidation analysis of reporting entities that are involved with variable interest entities and provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for annual periods beginning after December 15, 2015, including interim periods within those years and early adoption is permitted.  We do not expect that this standard will have a material impact on our results of operations or financial position.

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Other Items

6 Months Ended

Jun. 30, 2015

Other Items

Other Items

(13)Other Items

As was previously announced on December 15, 2014 the Company entered into an Agreement and Plan of Merger (“Merger Agreement”) by and between the Company and LNB Bancorp, Inc. (“LNB”).  Pursuant to the Merger Agreement, LNB will merge with and into the Company, with the Company as the surviving entity. Immediately thereafter, The Lorain National Bank (“Lorain National Bank”), the wholly owned subsidiary of LNB, will merge with and into Northwest Bank, the wholly owned subsidiary of the Company, with Northwest Bank as the surviving entity.

Under the terms of the Merger Agreement, 50% of LNB’s common shares will be converted into Company common stock and the remaining 50% will be exchanged for cash.  LNB’s shareholders will have the option to elect to receive either 1.461 shares of the Company’s common stock or $18.70 in cash for each LNB common share, subject to proration to ensure that, in the aggregate, 50% of LNB’s common shares will be converted into Company stock.

The transaction has been approved by the Boards of Directors of the Company and LNB as well as LNB’s shareholders and both the FDIC and the Pennsylvania Department of Banking. Additionally, the Federal Reserve Bank has issued a non-objection to a waiver request from the obligation to file an application. Completion of the transaction is subject to customary closing conditions. We anticipate both the closing and data conversion to be completed on the weekend of August 14, 2015.

As of June 30, 2015, LNB had total assets of $1.238 billion (unaudited) and net income of $2.3 million (unaudited) and $4.1 (unaudited) for the quarter and six months ended June 30, 2015, respectively.

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Disclosures About Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2015

Disclosures About Fair Value of Financial Instruments

Disclosures About Fair Value of Financial Instruments

(9)Disclosures About Fair Value of Financial Instruments

Fair value information about financial instruments, whether or not recognized in the consolidated statement of financial condition, is required to be disclosed. These requirements exclude certain financial instruments and all nonfinancial instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

Financial assets and liabilities recognized or disclosed at fair value on a recurring basis and certain financial assets and liabilities on a non-recurring basis are accounted for using a three-level hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable.  This hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3).  When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest level input that has a significant impact on fair value measurement is used.

Financial assets and liabilities are categorized based upon the following characteristics or inputs to the valuation techniques:

· Level 1 — Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in actively traded markets.  This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.

· Level 2 — Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets or liabilities that are actively traded.  Level 2 also includes pricing models in which the inputs are corroborated by market data, for example, matrix pricing.

· Level 3 — Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.  Level 3 inputs include the following:

· Quotes from brokers or other external sources that are not considered binding;

· Quotes from brokers or other external sources where it cannot be determined that market participants would in fact transact for the asset or liability at the quoted price;

· Quotes and other information from brokers or other external sources where the inputs are not deemed observable.

We are responsible for the valuation process and as part of this process may use data from outside sources in establishing fair value.  We perform due diligence to understand the inputs used or how the data was calculated or derived.  We also corroborate the reasonableness of external inputs in the valuation process.

The carrying amounts reported in the consolidated statement of financial condition approximate fair value for the following financial instruments: cash on hand, interest-earning deposits in other institutions, federal funds sold and other short-term investments, accrued interest receivable, accrued interest payable, and marketable securities available-for-sale.

Marketable Securities

Where available, market values are based on quoted market prices, dealer quotes, and prices obtained from independent pricing services.

Debt securities — available for sale - Generally, debt securities are valued using pricing for similar securities, recently executed transactions and other pricing models utilizing observable inputs.  The valuation for most debt securities is classified as Level 2.  Securities within Level 2 include corporate bonds, municipal bonds, mortgage-backed securities and US government obligations.  Certain corporate debt securities do not have an active market and as such the broker pricing received uses alternative methods. The fair value of these corporate debt securities is determined by using a discounted cash flow model using market assumptions, which generally include cash flow, collateral and other market assumptions.  As such, these securities are included herein as Level 3 assets.

Equity securities — available for sale - Level 1 securities include publicly traded securities valued using quoted market prices.  We consider the financial condition of the issuer to determine if the securities have indicators of impairment.

Debt securities — held to maturity  - The fair value of debt securities held to maturity is determined in the same manner as debt securities available for sale.

Loans Receivable

Loans with comparable characteristics including collateral and re-pricing structures are segregated for valuation purposes. Characteristics include remaining term, coupon interest, and estimated prepayment speeds. Delinquent loans are separately evaluated given the impact delinquency has on the projected future cash flow of the loan and the approximate discount or market rate.  Each loan pool is separately valued utilizing a discounted cash flow analysis. Projected monthly cash flows are discounted to present value using a market rate for comparable loans, which is not considered an exit price.

Federal Home Loan Bank of Pittsburgh (“FHLB”) Stock

Due to the restrictions placed on the transferability of FHLB stock it is not practical to determine the fair value.

Deposit Liabilities

The estimated fair value of deposits with no stated maturity, which includes demand deposits, money market, and other savings accounts, is the amount payable on demand. Although market premiums paid for depository institutions reflect an additional value for these low-cost deposits, adjusting fair value for any value expected to be derived from retaining those deposits for a future period of time or from the benefit that results from the ability to fund interest-earning assets with these deposit liabilities is prohibited. The fair value estimates of deposit liabilities do not include the benefit that results from the low-cost funding provided by these deposits compared to the cost of borrowing funds in the market. Fair values for time deposits are estimated using a discounted cash flow calculation that applies contractual cost currently being offered in the existing portfolio to current market rates being offered locally for deposits of similar remaining maturities. The valuation adjustment for the portfolio consists of the present value of the difference of these two cash flows, discounted at the assumed market rate of the corresponding maturity.

Borrowed Funds

Fixed rate advances are valued by comparing their contractual cost to the prevailing market cost.  The carrying amount of collateralized borrowings approximates the fair value.

Junior Subordinated Debentures

The fair value of junior subordinated debentures is calculated using the discounted cash flows at the prevailing rate of interest.

Cash flow hedges — Interest rate swap agreements (“swaps”)

The fair value of the swaps is the amount we would expect to pay to terminate the agreements and is based upon the present value of the expected future cash flows using the LIBOR swap curve, the basis for the underlying interest rate.

Off-Balance Sheet Financial Instruments

These financial instruments generally are not sold or traded, and estimated fair values are not readily available. However, the fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements. Commitments to extend credit are generally short-term in nature and, if drawn upon, are issued under current market terms. At June 30, 2015 and December 31, 2014, there was no significant unrealized appreciation or depreciation on these financial instruments.

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the consolidated statement of financial condition at June 30, 2015 (in thousands):

	Carrying		Estimated
	amount		fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	292,948	292,948	292,948	—	—
Securities available-for-sale	861,157		861,157	1,932	850,002	9,223
Securities held-to-maturity	61,464		62,957	—	62,957	—
Loans receivable, net	6,065,600		6,389,381	—	—	6,389,381
Accrued interest receivable	18,682		18,682	18,682	—	—
FHLB Stock	38,066		38,066	—	—	—
Total financial assets	$	7,337,917	7,663,191	313,562	912,959	6,398,604
Financial liabilities:
Savings and checking deposits	$	4,296,954	4,296,954	4,296,954	—	—
Time deposits	1,397,528		1,413,605	—	—	1,413,605
Borrowed funds	899,056		925,318	138,687	—	786,631
Junior subordinated debentures	103,094		108,627	—	—	108,627
Cash flow hedges - swaps	5,454		5,454	—	5,454	—
Accrued interest payable	1,302		1,302	1,302	—	—
Total financial liabilities	$	6,703,388	6,751,260	4,436,943	5,454	2,308,863

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the consolidated statement of financial condition at December 31, 2014 (in thousands):

	Carrying		Estimated
	amount		fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	240,706	240,706	240,706	—	—
Securities available-for-sale	912,371		912,371	3,157	898,617	10,597
Securities held-to-maturity	103,695		106,292	—	106,292	—
Loans receivable, net	5,922,373		6,240,079	—	—	6,240,079
Accrued interest receivable	18,623		18,623	18,623	—	—
FHLB Stock	33,293		33,293	—	—	—
Total financial assets	$	7,231,061	7,551,364	262,486	1,004,909	6,250,676
Financial liabilities:
Savings and checking accounts	$	4,154,228	4,154,228	4,154,228	—	—
Time deposits	1,478,314		1,498,539	—	—	1,498,539
Borrowed funds	888,109		919,612	162,714	—	756,898
Junior subordinated debentures	103,094		109,435	—	—	109,435
Cash flow hedges - swaps	6,273		6,273	—	6,273	—
Accrued interest payable	936		936	936	—	—
Total financial liabilities	$	6,630,954	6,689,023	4,317,878	6,273	2,364,872

Fair value estimates are made at a point-in-time, based on relevant market data and information about the instrument. The methods and assumptions detailed above were used in estimating the fair value of financial instruments at both June 30, 2015 and December 31, 2014.  There were no transfers of financial instruments between Level 1 and Level 2 during the six months ended June 30, 2015.

The following table represents assets and liabilities measured at fair value on a recurring basis at June 30, 2015 (in thousands):

						Total
						assets at
	Level 1		Level 2		Level 3	fair value
Equity securities	$	1,932	—		—	1,932
Debt securities:
U.S. government and agencies	—		21		—	21
Government sponsored enterprises	—		344,964		—	344,964
States and political subdivisions	—		62,949		—	62,949
Corporate	—		9,707		9,223	18,930
Total debt securities	—		417,641		9,223	426,864
Residential mortgage-backed securities:
GNMA	—		26,977		—	26,977
FNMA	—		66,057		—	66,057
FHLMC	—		37,566		—	37,566
Non-agency	—		619		—	619
Collateralized mortgage obligations:
GNMA	—		6,832		—	6,832
FNMA	—		124,459		—	124,459
FHLMC	—		157,772		—	157,772
SBA	—		8,966		—	8,966
Non-agency	—		3,113		—	3,113
Total mortgage-backed securities	—		432,361		—	432,361
Interest rate swaps	—		(5,454	)	—	(5,454	)
Total assets and liabilities	$	1,932	844,548		9,223	855,703

The following table represents assets and liabilities measured at fair value on a recurring basis at December 31, 2014 (in thousands):

						Total
						assets at
	Level 1		Level 2		Level 3	fair value
Equity securities	$	3,157	—		—	3,157
Debt securities:
U.S. government and agencies	—		25		—	25
Government sponsored enterprises	—		333,505		—	333,505
States and political subdivisions	—		70,145		—	70,145
Corporate	—		9,830		10,597	20,427
Total debt securities	—		413,505		10,597	424,102
Residential mortgage-backed securities:
GNMA	—		29,216		—	29,216
FNMA	—		73,497		—	73,497
FHLMC	—		42,119		—	42,119
Non-agency	—		643		—	643
Collateralized mortgage obligations:
GNMA	—		8,329		—	8,329
FNMA	—		139,150		—	139,150
FHLMC			178,698			178,698
SBA	—		10,052		—	10,052
Non-agency	—		3,408		—	3,408
Total mortgage-backed securities	—		485,112		—	485,112
Interest rate swaps	—		(6,273	)	—	(6,273	)
Total assets and liabilities	$	3,157	892,344		10,597	906,098

The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated (in thousands):

	Quarter ended				Six months ended
	June 30, 2015			June 30, 2014	June 30, 2015		June 30, 2014
Beginning balance	$	10,306		12,391	10,597		12,251
Total net realized investment gains/ (losses) and net change in unrealized appreciation/ (depreciation):
Included in net income as OTTI	—			—	—		—
Included in other comprehensive income	(1,083		)	152	(1,374	)	292
Purchases	—			—	—		—
Sales	—			—	—		—
Transfers in to Level 3	—			—	—		—
Transfers out of Level 3	—			—	—		—
Ending balance	$	9,223		12,543	9,223		12,543

Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as loans measured for impairment and real estate owned.  The following table represents the fair value measurement for nonrecurring assets at June 30, 2015 (in thousands):

					Total
					assets at
	Level 1		Level 2	Level 3	fair value
Loans measured for impairment	$	—	—	43,254	43,254
Real estate owned	—		—	13,864	13,864
Total assets	$	—	—	57,118	57,118

Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as loans measured for impairment and real estate owned.  The following table represents the fair value measurement for nonrecurring assets at December 31, 2014 (in thousands):

					Total
					assets at
	Level 1		Level 2	Level 3	fair value
Loans measured for impairment	$	—	—	54,729	54,729
Real estate owned	—		—	16,759	16,759
Total assets	$	—	—	71,488	71,488

Impaired loans — A loan is considered to be impaired as described in the Overview of Critical Accounting Policies Involving Estimates, Allowance for Loan Losses section.  We classify loans individually evaluated for impairment that require a specific or TDR reserve as nonrecurring Level 3.

Real Estate Owned — Real estate owned is comprised of property acquired through foreclosure or voluntarily conveyed by delinquent borrowers.  These assets are recorded on the date acquired at the lower of the related loan balance or fair value, less estimated disposition costs, with the fair value being determined by appraisal.  Subsequently, foreclosed assets are valued at the lower of the amount recorded at acquisition date or fair value, less estimated disposition costs.  We classify all real estate owned as nonrecurring Level 3.

The table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at June 30, 2015 (dollar amounts in thousands):

	Fair value		Valuation techniques	Significant unobservable inputs	Range (weighted average)
Debt securities	$	9,223	Discounted cash flow	Discount margin Default rates Prepayment speeds	0.35% to 2.10% (0.69%) 1.00% 1.00% annually
Loans measured for impairment	43,254		Appraisal value (1)	Estimated cost to sell	10%
			Discounted cash flow	Discount rate	3.75% to 6.50% (5.13%)
Real estate owned	13,864		Appraisal value (1)	Estimated cost to sell	10%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.

The significant unobservable inputs used in the fair value measurement of our debt securities are discount margins, default rates and prepayment speeds.  Significant increases in any of those rates would result in a significantly lower fair value measurement.

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2015

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

(5)Goodwill and Other Intangible Assets

The following table provides information for intangible assets subject to amortization at the dates indicated (in thousands):

	June 30,			December 31,
	2015			2014
Amortizable intangible assets:
Core deposit intangibles — gross	$	30,578		30,578
Acquisitions	—			—
Less: accumulated amortization	(30,578		)	(30,578	)
Core deposit intangibles — net	—			—
Customer and Contract intangible assets — gross	8,234			6,197
Acquisitions	263			2,037
Less: accumulated amortization	(5,738		)	(5,201	)
Customer and Contract intangible assets — net	$	2,759		3,033

The following table shows the actual aggregate amortization expense for the quarters and six months ended June 30, 2015 and 2014, as well as the estimated aggregate amortization expense, based upon current levels of intangible assets, for the current fiscal year and each of the five succeeding fiscal years (in thousands):

For the quarter ended June 30, 2015	$	269
For the quarter ended June 30, 2014	331
For the six months ended June 30, 2015	537
For the six months ended June 30, 2014	662
For the year ending December 31, 2015	1,074
For the year ending December 31, 2016	835
For the year ending December 31, 2017	597
For the year ending December 31, 2018	429
For the year ending December 31, 2019	260
For the year ending December 31, 2020	92

The following table provides information for the changes in the carrying amount of goodwill (in thousands):

	Community		Consumer
	Banks		Finance	Total
Balance at December 31, 2013	$	173,031	1,613	174,644
Goodwill acquired	679		—	679
Impairment losses	—		—	—
Balance at December 31, 2014	173,710		1,613	175,323
Goodwill acquired	175		—	175
Impairment losses	—		—	—
Balance at June 30, 2015	$	173,885	1,613	175,498

We are in the process of performing our annual goodwill impairment test as of June 30, 2015 and do not anticipate that goodwill will be impaired.  See the Overview of Critical Accounting Policies Involving Estimates section for a description of our testing procedures.

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Disclosures About Fair Value of Financial Instruments (Details 3) - Debt securities - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reconciliation of debt securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance at the beginning of the period	$ 10,306	$ 12,391	$ 10,597	$ 12,251
Total net realized investment gains/ (losses) and net change in unrealized appreciation/ (depreciation):
Included in other comprehensive income	(1,083)	152	(1,374)	292
Balance at the end of the period	$ 9,223	$ 12,543	$ 9,223	$ 12,543

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Investment securities and impairment of investment securities

6 Months Ended

Jun. 30, 2015

Investment securities and impairment of investment securities

Investment securities and impairment of investment securities

(3)Investment securities and impairment of investment securities

The following table shows the portfolio of investment securities available-for-sale at June 30, 2015 (in thousands):

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding		Fair
	cost		gains	losses		value
Debt issued by the U.S. government and agencies:
Due in one year or less	$	21	—	—		21
Debt issued by government sponsored enterprises:
Due in one year or less	500		8	—		508
Due after one year through five years	320,553		466	(1,035	)	319,984
Due after five years through ten years	24,500		—	(28	)	24,472
Equity securities	1,417		515	—		1,932
Municipal securities:
Due in one year or less	1,085		3	—		1,088
Due after one year through five years	6,733		118	—		6,851
Due after five years through ten years	4,651		113	—		4,764
Due after ten years	48,627		1,651	(32	)	50,246
Corporate debt issues:
Due after ten years	17,002		2,324	(396	)	18,930
Residential mortgage-backed securities:
Fixed rate pass-through	65,398		2,693	(321	)	67,770
Variable rate pass-through	60,275		3,182	(8	)	63,449
Fixed rate non-agency CMOs	2,793		320	—		3,113
Fixed rate agency CMOs	201,346		579	(3,684	)	198,241
Variable rate agency CMOs	99,246		578	(36	)	99,788
Total residential mortgage-backed securities	429,058		7,352	(4,049	)	432,361
Total marketable securities available-for-sale	$	854,147	12,550	(5,540	)	861,157

The following table shows the portfolio of investment securities available-for-sale at December 31, 2014 (in thousands):

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding		Fair
	cost		gains	losses		value
Debt issued by the U.S. government and agencies:
Due in one year or less	$	25	—	—		25
Debt issued by government sponsored enterprises:
Due after one year through five years	310,172		287	(2,672	)	307,787
Due after five years through ten years	25,746		—	(28	)	25,718
Equity securities	2,591		682	(116	)	3,157
Municipal securities:
Due in one year or less	810		15	—		825
Due after one year through five years	7,878		132	—		8,010
Due after five years through ten years	6,965		115	—		7,080
Due after ten years	51,839		2,391	—		54,230
Corporate debt issues:
Due after ten years	18,267		2,579	(419	)	20,427
Residential mortgage-backed securities:
Fixed rate pass-through	72,852		3,149	(124	)	75,877
Variable rate pass-through	66,140		3,466	(8	)	69,598
Fixed rate non-agency CMOs	3,162		246	—		3,408
Fixed rate agency CMOs	226,413		685	(5,331	)	221,767
Variable rate agency CMOs	113,842		657	(37	)	114,462
Total residential mortgage-backed securities	482,409		8,203	(5,500	)	485,112
Total marketable securities available-for-sale	$	906,702	14,404	(8,735	)	912,371

The following table shows the portfolio of investment securities held-to-maturity at June 30, 2015 (in thousands):

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding	Fair
	cost		gains	losses	value
Municipal securities:
Due after five years through ten years	$	4,641	36	—	4,677
Due after ten years	25,831		544	—	26,375
Residential mortgage-backed securities:
Fixed rate pass-through	7,292		408	—	7,700
Variable rate pass-through	3,927		96	—	4,023
Fixed rate agency CMOs	18,762		392	—	19,154
Variable rate agency CMOs	1,011		17	—	1,028
Total residential mortgage-backed securities	30,992		913	—	31,905
Total marketable securities held-to-maturity	$	61,464	1,493	—	62,957

The following table shows the portfolio of investment securities held-to-maturity at December 31, 2014 (in thousands):

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding	Fair
	cost		gains	losses	value
Municipal securities:
Due after five years through ten years	$	10,207	141	—	10,348
Due after ten years	56,545		1,314	—	57,859
Residential mortgage-backed securities:
Fixed rate pass-through	8,236		477	—	8,713
Variable rate pass-through	4,273		122	—	4,395
Fixed rate agency CMOs	23,382		531	—	23,913
Variable rate agency CMOs	1,052		12	—	1,064
Total residential mortgage-backed securities	36,943		1,142	—	38,085
Total marketable securities held-to-maturity	$	103,695	2,597	—	106,292

The following table shows the fair value of and gross unrealized losses on investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2015 (in thousands):

	Less than 12 months				12 months or more			Total
			Unrealized			Unrealized			Unrealized
	Fair value		loss		Fair value	loss		Fair value	loss
U.S. government and agencies	$	101,837	(340	)	125,031	(723	)	226,868	(1,063	)
Municipal securities	750		(32	)	—	—		750	(32	)
Corporate issues	—		—		2,028	(396	)	2,028	(396	)
Residential mortgage- backed securities - agency	18,148		(73	)	166,264	(3,976	)	184,412	(4,049	)
Total temporarily impaired securities	$	120,735	(445	)	293,323	(5,095	)	414,058	(5,540	)

The following table shows the fair value of and gross unrealized losses on investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2014 (in thousands):

	Less than 12 months				12 months or more			Total
			Unrealized			Unrealized			Unrealized
	Fair value		loss		Fair value	loss		Fair value	loss
U.S. government and agencies	$	28,878	(67	)	244,828	(2,633	)	273,706	(2,700	)
Corporate debt issues	—		—		2,003	(419	)	2,003	(419	)
Equity securities	506		(116	)	—	—		506	(116	)
Residential mortgage- backed securities - agency	20,832		(79	)	195,505	(5,421	)	216,337	(5,500	)
Total temporarily impaired securities	$	50,216	(262	)	442,336	(8,473	)	492,552	(8,735	)

We review our investment portfolio on a quarterly basis for indications of impairment.  This review includes analyzing the length of time and the extent to which amortized costs have exceeded fair values, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer, and the intent to hold the investments for a period of time sufficient to allow for a recovery in value.  Certain investments are evaluated using our best estimate of future cash flows. If the estimate of cash flows indicates that an adverse change has occurred, other-than-temporary impairment is recognized for the amount of the unrealized loss that was deemed credit related.

Credit related other-than-temporary impairment on all debt securities is recognized in earnings while noncredit related other-than-temporary impairment on available-for-sale debt securities, not expected to be sold, is recognized in other comprehensive income.

The table below shows a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the quarter ended (in thousands):

	2015			2014
Beginning balance at April 1, (1)	$	8,865		10,334
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized	—			—
Reduction for losses realized during the quarter	(16		)	(170	)
Reduction for securities called realized during the quarter	(360		)
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized	—			—
Ending balance at June 30,	$	8,489		10,164

(1) – The beginning balance represents credit losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.

The table below shows a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the six months ended (in thousands):

	2015			2014
Beginning balance at January 1, (1)	$	8,894		10,342
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized	—			—
Reduction for losses realized during the six months	(45		)	(178	)
Reduction for securities called realized during the six months	(360		)
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized	—			—
Ending balance at June 30,	$	8,489		10,164

(1) – The beginning balance represents credit losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.

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Loans receivable

6 Months Ended

Jun. 30, 2015

Loans receivable

Loans receivable

(4)Loans receivable

The following table shows a summary of our loans receivable at June 30, 2015 and December 31, 2014 (in thousands):

	June 30,			December 31,
	2015			2014
Personal Banking:
Residential mortgage loans	$	2,597,204		2,526,240
Home equity loans	1,055,829			1,066,131
Other consumer loans	252,391			242,744
Total Personal Banking	3,905,424			3,835,115
Business Banking:
Commercial real estate	1,986,613			1,874,944
Commercial loans	368,417			419,525
Total Business Banking	2,355,030			2,294,469
Total loans receivable, gross	6,260,454			6,129,584
Deferred loan costs	10,251			6,095
Allowance for loan losses	(59,057		)	(67,518	)
Undisbursed loan proceeds:
Residential mortgage loans	(10,285		)	(10,879	)
Commercial real estate	(126,870		)	(73,760	)
Commercial loans	(8,893		)	(61,149	)
Total loans receivable, net	$	6,065,600		5,922,373

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the quarter ended June 30, 2015 (in thousands):

	Balance June 30, 2015		Current period provision		Charge-offs		Recoveries	Balance March 31, 2015
Personal Banking:
Residental mortgage loans	$	4,892	76		(278	)	17	5,077
Home equity loans	3,445		(187	)	(542	)	131	4,043
Other consumer loans	6,244		1,865		(1,759	)	303	5,835
Total Personal Banking	14,581		1,754		(2,579	)	451	14,955
Business Banking:
Commercial real estate loans	30,163		(1,558	)	(3,439	)	1,908	33,252
Commercial loans	14,313		4,832		(6,356	)	724	15,113
Total Business Banking	44,476		3,274		(9,795	)	2,632	48,365
Unallocated (1)	—		(3,978	)	—		—	3,978
Total	$	59,057	1,050		(12,374	)	3,083	67,298

(1) – Due to enhancements in our allowance for loan losses process we allocated the previously unallocated allowance using both qualitative and quantitative factors.

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the quarter ended June 30, 2014 (in thousands):

	Balance June 30, 2014		Current period provision	Charge-offs		Recoveries	Balance March 31, 2014
Personal Banking:
Residental mortgage loans	$	7,767	1,142	(883	)	41	7,467
Home equity loans	6,516		72	(593	)	79	6,958
Other consumer loans	5,626		1,495	(1,450	)	301	5,280
Total Personal Banking	19,909		2,709	(2,926	)	421	19,705
Business Banking:
Commercial real estate loans	35,081		364	(2,578	)	1,086	36,209
Commercial loans	12,106		5,017	(9,516	)	436	16,169
Total Business Banking	47,187		5,381	(12,094	)	1,522	52,378
Unallocated	4,346		195	—		—	4,151
Total	$	71,442	8,285	(15,020	)	1,943	76,234

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the six months ended June 30, 2015 (in thousands):

	Balance June 30, 2015		Current period provision		Charge-offs		Recoveries	Balance December 31, 2014
Personal Banking:
Residental mortgage loans	$	4,892	(206	)	(613	)	130	5,581
Home equity loans	3,445		(400	)	(884	)	179	4,550
Other consumer loans	6,244		3,135		(3,699	)	690	6,118
Total Personal Banking	14,581		2,529		(5,196	)	999	16,249
Business Banking:
Commercial real estate loans	30,163		(1,316	)	(4,552	)	2,642	33,389
Commercial loans	14,313		5,102		(7,080	)	2,776	13,515
Total Business Banking	44,476		3,786		(11,632	)	5,418	46,904
Unallocated (1)	—		(4,365	)	—		—	4,365
Total	$	59,057	1,950		(16,828	)	6,417	67,518

(1) - Due to enhancements in our allowance for loan losses process we allocated the previously unallocated allowance using both qualitative and quantitative factors.

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the six months ended June 30, 2014 (in thousands):

	Balance June 30, 2014		Current period provision		Charge-offs		Recoveries	Balance December 31, 2013
Personal Banking:
Residental mortgage loans	$	7,767	1,177		(1,342	)	57	7,875
Home equity loans	6,516		109		(965	)	127	7,245
Other consumer loans	5,626		2,679		(3,166	)	626	5,487
Total Personal Banking	19,909		3,965		(5,473	)	810	20,607
Business Banking:
Commercial real estate loans	35,081		1,685		(3,510	)	1,707	35,199
Commercial loans	12,106		10,436		(10,286	)	1,076	10,880
Total Business Banking	47,187		12,121		(13,796	)	2,783	46,079
Unallocated	4,346		(316	)	—		—	4,662
Total	$	71,442	15,770		(19,269	)	3,593	71,348

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at June 30, 2015 (in thousands):

	Recorded investment in loans receivable		Allowance for loan losses	Recorded investment in loans on nonaccrual (1)	Recorded investment in loans past due 90 days or more and still accruing	TDRs	Allowance related to TDRs	Additional commitments to customers with loans classified as TDRs
Personal Banking:
Residental mortgage loans	$	2,597,170	4,892	18,977	6	6,340	1,008	—
Home equity loans	1,055,829		3,445	6,482	—	2,588	276	—
Other consumer loans	252,391		6,244	2,638	358	—	—	—
Total Personal Banking	3,905,390		14,581	28,097	364	8,928	1,284	—
Business Banking:
Commercial real estate loans	1,859,743		30,163	22,640	—	37,028	1,718	141
Commercial loans	359,524		14,313	7,259	21	10,228	787	883
Total Business Banking	2,219,267		44,476	29,899	21	47,256	2,505	1,024
Total	$	6,124,657	59,057	57,996	385	56,184	3,789	1,024

(1) Includes $15.4 million of nonaccrual TDRs.

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at December 31, 2014 (in thousands):

	Recorded investment in loans receivable		Allowance for loan losses	Recorded investment in loans on nonaccrual (1)	Recorded investment in loans past due 90 days or more and still accruing	TDRs	Allowance related to TDRs	Additional commitments to customers with loans classified as TDRs
Personal Banking:
Residental mortgage loans	$	2,521,456	5,581	21,194	8	6,574	1,133	—
Home equity loans	1,066,131		4,550	9,569	—	2,412	229	—
Other consumer loans	242,744		6,118	2,820	206	—	—	—
Total Personal Banking	3,830,331		16,249	33,583	214	8,986	1,362	—
Business Banking:
Commercial real estate loans	1,801,184		33,389	38,647	—	41,917	4,938	449
Commercial loans	358,376		13,515	7,578	21	10,885	1,095	814
Total Business Banking	2,159,560		46,904	46,225	21	52,802	6,033	1,263
Total	$	5,989,891	63,153	79,808	235	61,788	7,395	1,263

(1) Includes $24.5 million of nonaccrual TDRS.

The following table provides geographical and delinquency information related to the loan portfolio by portfolio segment and class of financing receivable at June 30, 2015 (in thousands):

	Pennsylvania			New York		Ohio		Maryland		Other		Total
Recorded investment in loans receivable:
Personal Banking:
Residential mortgage loans	$	2,223,206		165,217		18,379		133,981		56,387		2,597,170
Home equity loans	897,285			119,459		8,447		25,732		4,906		1,055,829
Other consumer loans	232,797			11,103		3,740		1,396		3,355		252,391
Total Personal Banking	3,353,288			295,779		30,566		161,109		64,648		3,905,390
Business Banking:
Commercial real estate loans	973,777			689,043		24,270		115,796		56,857		1,859,743
Commercial loans	273,771			53,881		16,717		6,080		9,075		359,524
Total Business Banking	1,247,548			742,924		40,987		121,876		65,932		2,219,267
Total	$	4,600,836		1,038,703		71,553		282,985		130,580		6,124,657
Percentage of total loans receivable	75.1		%	17.0	%	1.2	%	4.6	%	2.1	%	100.0	%

	Pennsylvania			New York		Ohio		Maryland		Other		Total
Loans 90 or more days delinquent:
Personal Banking:
Residential mortgage loans	$	11,498		1,553		58		1,820		1,196		16,125
Home equity loans	2,804			766		—		1,046		—		4,616
Other consumer loans	2,082			103		14		—		—		2,199
Total Personal Banking	16,384			2,422		72		2,866		1,196		22,940
Business Banking:
Commercial real estate loans	10,758			1,243		49		271		352		12,673
Commercial loans	1,845			—		13		—		—		1,858
Total Business Banking	12,603			1,243		62		271		352		14,531
Total	$	28,987		3,665		134		3,137		1,548		37,471
Percentage of total loans 90 or more days delinquent	77.3		%	9.8	%	0.4	%	8.4	%	4.1	%	100.0	%

The following table provides geographical and delinquency information related to the loan portfolio by portfolio segment and class of financing receivable at December 31, 2014 (in thousands):

	Pennsylvania			New York		Ohio		Maryland		Other		Total
Recorded investment in loans receivable:
Personal Banking:
Residential mortgage loans	$	2,151,361		161,445		18,486		134,228		55,936		2,521,456
Home equity loans	909,139			115,459		9,087		27,203		5,243		1,066,131
Other consumer loans	225,088			9,961		3,132		1,328		3,235		242,744
Total Personal Banking	3,285,588			286,865		30,705		162,759		64,414		3,830,331
Business Banking:
Commercial real estate loans	1,013,632			590,934		24,901		114,850		56,867		1,801,184
Commercial loans	243,159			83,252		15,826		7,817		8,322		358,376
Total Business Banking	1,256,791			674,186		40,727		122,667		65,189		2,159,560
Total	$	4,542,379		961,051		71,432		285,426		129,603		5,989,891
Percentage of total loans receivable	75.8		%	16.0	%	1.2	%	4.8	%	2.2	%	100.0	%

	Pennsylvania			New York		Ohio		Maryland		Other		Total
Loans 90 or more days delinquent:
Personal Banking:
Residential mortgage loans	$	12,282		1,237		710		1,678		1,789		17,696
Home equity loans	4,474			936		35		1,058		103		6,606
Other consumer loans	2,388			55		7		—		—		2,450
Total Personal Banking	19,144			2,228		752		2,736		1,892		26,752
Business Banking:
Commercial real estate loans	8,827			1,072		—		270		930		11,099
Commercial loans	2,659			284		—		207		325		3,475
Total Business Banking	11,486			1,356		—		477		1,255		14,574
Total	$	30,630		3,584		752		3,213		3,147		41,326
Percentage of total loans 90 or more days delinquent	74.1		%	8.7	%	1.8	%	7.8	%	7.6	%	100.0	%

The following table provides information related to the composition of impaired loans by portfolio segment and by class of financing receivable at and for the six months ended June 30, 2015 (in thousands):

	Nonaccrual loans 90 or more days delinquent		Nonaccrual loans less than 90 days delinquent	Loans less than 90 days delinquent reviewed for impairment	TDRs less than 90 days delinquent not included elsewhere	Total impaired loans	Average recorded investment in impaired loans	Interest income recognized on impaired loans
Personal Banking:
Residental mortgage loans	$	16,125	2,852	—	5,237	24,214	24,895	433
Home equity loans	4,616		1,866	—	2,127	8,609	10,097	223
Other consumer loans	2,199		439	—	—	2,638	2,645	44
Total Personal Banking	22,940		5,157	—	7,364	35,461	37,637	700
Business Banking:
Commercial real estate loans	12,673		9,967	26,960	16,615	66,215	79,416	1,564
Commercial loans	1,858		5,401	1,736	4,806	13,801	18,232	345
Total Business Banking	14,531		15,368	28,696	21,421	80,016	97,648	1,909
Total	$	37,471	20,525	28,696	28,785	115,477	135,285	2,609

The following table provides information related to the composition of impaired loans by portfolio segment and by class of financing receivable at and for the year ended December 31, 2014 (in thousands):

	Nonaccrual loans 90 or more days delinquent		Nonaccrual loans less than 90 days delinquent	Loans less than 90 days delinquent reviewed for impairment	TDRs less than 90 days delinquent not included elsewhere	Total impaired loans	Average recorded investment in impaired loans	Interest income recognized on impaired loans
Personal Banking:
Residental mortgage loans	$	17,696	3,498	—	5,845	27,039	28,227	817
Home equity loans	6,606		2,963	—	1,706	11,275	11,753	485
Other consumer loans	2,450		370	—	—	2,820	2,383	66
Total Personal Banking	26,752		6,831	—	7,551	41,134	42,363	1,368
Business Banking:
Commercial real estate loans	11,099		27,548	26,400	12,128	77,175	90,187	3,589
Commercial loans	3,475		4,103	5,266	6,026	18,870	27,088	914
Total Business Banking	14,574		31,651	31,666	18,154	96,045	117,275	4,503
Total	$	41,326	38,482	31,666	25,705	137,179	159,638	5,871

The following table provides information related to the evaluation of impaired loans by portfolio segment and by class of financing receivable at June 30, 2015 (in thousands):

	Loans collectively evaluated for impairment		Loans individually evaluated for impairment	Loans individually evaluated for impairment for which there is a related impairment reserve	Related impairment reserve	Loans individually evaluated for impairment for which there is no related reserve
Personal Banking:
Residental mortgage loans	$	2,590,038	7,132	7,132	1,221	—
Home equity loans	1,053,241		2,588	2,588	276	—
Other consumer loans	252,294		97	97	2	—
Total Personal Banking	3,895,573		9,817	9,817	1,499	—
Business Banking:
Commercial real estate loans	1,798,992		60,751	30,513	2,117	30,238
Commercial loans	348,670		10,854	7,245	705	3,609
Total Business Banking	2,147,662		71,605	37,758	2,822	33,847
Total	$	6,043,235	81,422	47,575	4,321	33,847

The following table provides information related to the evaluation of impaired loans by portfolio segment and by class of financing receivable at December 31, 2014 (in thousands):

	Loans collectively evaluated for impairment		Loans individually evaluated for impairment	Loans individually evaluated for impairment for which there is a related impairment reserve	Related impairment reserve	Loans individually evaluated for impairment for which there is no related reserve
Personal Banking:
Residental mortgage loans	$	2,514,060	7,396	7,396	1,116	—
Home equity loans	1,063,741		2,390	2,390	246	—
Other consumer loans	242,678		66	66	1	—
Total Personal Banking	3,820,479		9,852	9,852	1,363	—
Business Banking:
Commercial real estate loans	1,734,864		66,320	42,869	6,189	23,451
Commercial loans	343,416		14,960	10,938	1,378	4,022
Total Business Banking	2,078,280		81,280	53,807	7,567	27,473
Total	$	5,898,759	91,132	63,659	8,930	27,473

Our loan portfolios include loans that have been modified in a troubled debt restructuring (TDR), where concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include: extending the note’s maturity date, permitting interest only payments, reducing the interest rate to a rate lower than current market rates for new debt with similar risk, reducing the principal payment, principal forbearance or other actions.  These concessions are applicable to all loan segments and classes. Certain TDRs are classified as nonperforming at the time of restructuring and may be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months.

When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, the loan’s observable market price or the current fair value of the collateral, less selling costs, for collateral dependent loans.  If we determine that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance.  In periods subsequent to modification, we evaluate all TDRs, including those that have payment defaults, for possible impairment, using ASC 310-10. As a result, loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan.

Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default.  If loans modified in a TDR subsequently default, we evaluate the loan for possible further impairment. The allowance may be increased, adjustments may be made in the allocation of the allowance, partial charge-offs may be taken to further write-down the carrying value of the loan, or the loan may be charged-off completely.

The following table provides a roll forward of troubled debt restructurings for the periods indicated (in thousands):

	For the quarters ended June 30,
	2015				2014
	Number of contracts				Number of contracts
Beginning TDR balance:	242	$	60,645		258	$	74,511
New TDRs	4	386			6	1,343
Re-modified TDRs	1	45			—	—
Net paydowns		(3,617		)		(2,526		)
Charge-offs:
Residential mortgage loans	—	—			—	—
Home equity loans	1	(68		)	1	(130		)
Commercial real estate loans	1	(9		)	—	—
Commercial loans	—	—			7	(8,244		)
Paid-off loans:
Residential mortgage loans	1	(53		)	—	—
Home equity loans	—	—			1	(39		)
Commercial real estate loans	6	(926		)	4	(561		)
Commercial loans	6	(219		)	3	(561		)
Ending TDR balance:	231	$	56,184		248	$	63,793
Accruing TDRs		$	40,741			$	39,844
Non-accrual TDRs		15,443				23,949

The following table provides a roll forward of troubled debt restructurings for the periods indicated (in thousands):

	For the six months ended June 30,
	2015				2014
	Number of contracts				Number of contracts
Beginning TDR balance:	248	$	61,788		262	$	79,166
New TDRs	6	498			13	2,652
Re-modified TDRs	2	130			4	159
Net paydowns		(4,440		)		(7,020		)
Charge-offs:
Residential mortgage loans	—	—			—	—
Home equity loans	3	(99		)	1	(130		)
Commercial real estate loans	2	(23		)	2	(31		)
Commercial loans	2	(387		)	8	(8,251		)
Paid-off loans:
Residential mortgage loans	1	(53		)	—	—
Home equity loans	1	(6		)	1	(39		)
Commercial real estate loans	8	(1,005		)	6	(838		)
Commercial loans	6	(219		)	9	(1,875		)
Ending TDR balance:	231	$	56,184		248	$	63,793
Accruing TDRs		$	40,741			$	39,844
Non-accrual TDRs		15,443				23,949

The following table provides information related to troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated (dollars in thousands):

	For the quarter ended June 30, 2015					For the six months ended June 30, 2015
	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Troubled debt restructurings:
Personal Banking:
Residential mortgage loans	2	$	120	119	—	4	$	232	230	1
Home equity loans	1	2		2	—	2	87		85	17
Other consumer loans	—	—		—	—	—	—		—	—
Total Personal Banking	3	122		121	—	6	319		315	18
Business Banking:
Commercial real estate loans	1	12		12	1	1	12		12	1
Commercial loans	1	297		294	29	1	297		294	29
Total Business Banking	2	309		306	30	2	309		306	30
Total	5	$	431	427	30	8	$	628	621	48
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Personal Banking:
Residential mortgage loans	1	$	251	250	—	1	$	251	250	—
Home equity loans	1	23		21	—	1	23		21	—
Other consumer loans	—	—		—	—	—	—		—	—
Total Personal Banking	2	274		271	—	2	274		271	—
Business Banking:
Commercial real estate loans	—	—		—	—	—	—		—	—
Commercial loans	—	—		—	—	1	50		—	—
Total Business Banking	—	—		—	—	1	50		—	—
Total	2	$	274	271	—	3	$	324	271	—

The following table provides information related to troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated (dollars in thousands):

	For the quarter ended June 30, 2014					For the six months months ended June 30, 2014
	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Troubled debt restructurings:
Personal Banking:
Residential mortgage loans	3	$	632	575	65	9	$	1,922	1,860	184
Home equity loans	2	376		346	2	2	376		346	2
Other consumer loans	—	—		—	—	—	—		—	—
Total Personal Banking	5	1,008		921	67	11	2,298		2,206	186
Business Banking:
Commercial real estate loans	—	—		—	—	3	89		82	32
Commercial loans	1	335		331	24	3	424		446	35
Total Business Banking	1	335		331	24	6	513		528	67
Total	6	$	1,343	1,252	91	17	$	2,811	2,734	253
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Personal Banking:
Residential mortgage loans	—	$	—	—	—	—	$	—	—	—
Home equity loans	—	—		—	—	—	—		—	—
Other consumer loans	—	—		—	—	—	—		—	—
Total Personal Banking	—	—		—	—	—	—		—	—
Business Banking:
Commercial real estate loans	2	128		126	35	2	128		126	35
Commercial loans	1	7,444		378	—	1	7,444		378	—
Total Business Banking	3	7,572		504	35	3	7,572		504	35
Total	3	$	7,572	504	35	3	$	7,572	504	35

The following table provides information as of June 30, 2015 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended June 30, 2015 (dollars in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	2	$	74	—	—	45	119
Home equity loans	1	—		—	2	—	2
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	3	74		—	2	45	121
Business Banking:
Commercial real estate loans	1	—		—	12	—	12
Commercial loans	1	—		—	294	—	294
Total Business Banking	2	—		—	306	—	306
Total	5	$	74	—	308	45	427

The following table provides information as of June 30, 2014 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended June 30, 2014 (dollars in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	3	$	—	—	575	—	575
Home equity loans	2	—		—	346	—	346
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	5	—		—	921	—	921
Business Banking:
Commercial real estate loans	—	—		—	—	—	—
Commercial loans	1	—		—	—	331	331
Total Business Banking	1	—		—	—	331	331
Total	6	$	—	—	921	331	1,252

The following table provides information as of June 30, 2015 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the six months ended June 30, 2015 (dollars in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	4	$	74	—	111	45	230
Home equity loans	2	83		—	2	—	85
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	6	157		—	113	45	315
Business Banking:
Commercial real estate loans	1	—		—	12	—	12
Commercial loans	1	—		—	294	—	294
Total Business Banking	2	—		—	306	—	306
Total	8	$	157	—	419	45	621

The following table provides information as of June 30, 2014 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the six months ended June 30, 2014 (dollars in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	9	$	—	—	1,860	—	1,860
Home equity loans	2	—		—	346	—	346
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	11	—		—	2,206	—	2,206
Business Banking:
Commercial real estate loans	3	—		—	58	24	82
Commercial loans	3	—		110	—	336	446
Total Business Banking	6	—		110	58	360	528
Total	17	$	—	110	2,264	360	2,734

The following table provides information related to re-modified troubled debt restructurings by portfolio segment and by class of financing receivable for the quarter ended June 30, 2015 (dollars in thousands):

	Number of re-	Type of re-modification
	modified TDRs	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	1	$	—	—	—	45	45
Home equity loans	—	—		—	—	—	—
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	1	—		—	—	45	45
Business Banking:
Commercial real estate loans	—	—		—	—	—	—
Commercial loans	—	—		—	—	—	—
Total Business Banking	—	—		—	—	—	—
Total	1	$	—	—	—	45	45

No TDRs were re-modified during the quarter ended June 30, 2014.

The following table provides information related to re-modified troubled debt restructurings by portfolio segment and by class of financing receivable for the six months ended June 30, 2015 (dollars in thousands):

	Number of re-	Type of re-modification
	modified TDRs	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	1	$	—	—	—	45	45
Home equity loans	1	83		—	—	—	83
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	2	83		—	—	45	128
Business Banking:
Commercial real estate loans	—	—		—	—	—	—
Commercial loans	—	—		—	—	—	—
Total Business Banking	—	—		—	—	—	—
Total	2	$	83	—	—	45	128

The following table provides information related to re-modified troubled debt restructurings by portfolio segment and by class of financing receivable for the six months ended June 30, 2014 (dollars in thousands):

	Number of re-	Type of re-modification
	modified TDRs	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	1	$	—	—	77	—	77
Home equity loans	—	—		—	—	—	—
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	1	—		—	77	—	77
Business Banking:
Commercial real estate loans	2	—		—	58	18	76
Commercial loans	1	—		—	—	5	5
Total Business Banking	3	—		—	58	23	81
Total	4	$	—	—	135	23	158

The following table provides information related to loan payment delinquencies at June 30, 2015 (in thousands):

	30-59 Days delinquent		60-89 Days delinquent	90 Days or greater delinquent	Total delinquency	Current	Recorded investment in loans receivable
Personal Banking:
Residential mortgage loans	$	3,250	5,815	16,125	25,190	2,571,980	2,597,170
Home equity loans	3,768		2,090	4,616	10,474	1,045,355	1,055,829
Other consumer loans	5,116		1,767	2,199	9,082	243,309	252,391
Total Personal Banking	12,134		9,672	22,940	44,746	3,860,644	3,905,390
Business Banking:
Commercial real estate loans	3,788		4,919	12,673	21,380	1,838,363	1,859,743
Commercial loans	1,363		159	1,858	3,380	356,144	359,524
Total Business Banking	5,151		5,078	14,531	24,760	2,194,507	2,219,267
Total	$	17,285	14,750	37,471	69,506	6,055,151	6,124,657

The following table provides information related to loan payment delinquencies at December 31, 2014 (in thousands):

	30-59 Days delinquent		60-89 Days delinquent	90 Days or greater delinquent	Total delinquency	Current	Recorded investment in loans receivable
Personal Banking:
Residential mortgage loans	$	27,443	6,970	17,696	52,109	2,469,347	2,521,456
Home equity loans	5,752		1,672	6,606	14,030	1,052,101	1,066,131
Other consumer loans	5,572		2,435	2,450	10,457	232,287	242,744
Total Personal Banking	38,767		11,077	26,752	76,596	3,753,735	3,830,331
Business Banking:
Commercial real estate loans	4,956		2,038	11,099	18,093	1,783,091	1,801,184
Commercial loans	2,262		209	3,475	5,946	352,430	358,376
Total Business Banking	7,218		2,247	14,574	24,039	2,135,521	2,159,560
Total	$	45,985	13,324	41,326	100,635	5,889,256	5,989,891

Credit quality indicators:  We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. We analyze loans individually by classifying the loans by credit risk.  Credit relationships greater than or equal to $1.0 million classified as special mention or substandard are reviewed quarterly for deterioration or improvement to determine if the loan is appropriately classified.  We use the following definitions for risk ratings other than pass:

Special mention — Loans designated as special mention have specific, well-defined risk issues, which create a high level of uncertainty regarding the long-term viability of the business. Loans in this class are considered to have high-risk characteristics.  A special mention loan exhibits material negative financial trends due to company-specific or systemic conditions.  If these potential weaknesses are not mitigated, they threaten the borrower’s capacity to meet its debt obligations.  Special mention loans still demonstrate sufficient financial flexibility to react to and positively address the root cause of the adverse financial trends without significant deviations from their current business strategy. Their potential weaknesses deserve our close attention and warrant enhanced monitoring.

Substandard — Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any.  Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.  They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.

Doubtful — Loans classified as doubtful have all the weaknesses inherent in those classified as substandard.   In addition, those weaknesses make collection or liquidation in full highly questionable and improbable.   A loan classified as doubtful exhibits discernible loss potential, but a complete loss seems very unlikely.  The possibility of a loss on a doubtful loan is high, but because of certain important and reasonably specific pending factors that may strengthen the loan, its classification as an estimated loss is deferred until a more exact status can be determined.

Loss — Loans classified as loss are considered uncollectible and of such value that the continuance as a loan is not warranted.  A loss classification does not mean that the loan has no recovery or salvage value; instead, it means that it is not practical or desirable to defer writing off all or a portion of a basically worthless loan even though partial recovery may be possible in the future.

The following table sets forth information about credit quality indicators, which were updated during the quarter ended June 30, 2015 (in thousands):

	Pass		Special mention	Substandard	Doubtful	Loss	Recorded investment in loans receivable
Personal Banking:
Residential mortgage loans	$	2,584,438	—	11,362	—	1,370	2,597,170
Home equity loans	1,051,213		—	4,616	—	—	1,055,829
Other consumer loans	250,648		—	1,743	—	—	252,391
Total Personal Banking	3,886,299		—	17,721	—	1,370	3,905,390
Business Banking:
Commercial real estate loans	1,688,449		37,497	133,797	—	—	1,859,743
Commercial loans	301,467		19,793	38,262	2	—	359,524
Total Business Banking	1,989,916		57,290	172,059	2	—	2,219,267
Total	$	5,876,215	57,290	189,780	2	1,370	6,124,657

The following table sets forth information about credit quality indicators, which were updated during the year ended December 31, 2014 (in thousands):

	Pass		Special mention	Substandard	Doubtful	Loss	Recorded investment in loans receivable
Personal Banking:
Residential mortgage loans	$	2,507,269	—	12,763	—	1,424	2,521,456
Home equity loans	1,059,525		—	6,606	—	—	1,066,131
Other consumer loans	240,947		—	1,797	—	—	242,744
Total Personal Banking	3,807,741		—	21,166	—	1,424	3,830,331
Business Banking:
Commercial real estate loans	1,618,269		36,908	145,502	505	—	1,801,184
Commercial loans	286,234		23,690	46,280	2,172	—	358,376
Total Business Banking	1,904,503		60,598	191,782	2,677	—	2,159,560
Total	$	5,712,244	60,598	212,948	2,677	1,424	5,989,891

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Guarantees

6 Months Ended

Jun. 30, 2015

Guarantees

Guarantees

(6)Guarantees

We issue standby letters of credit in the normal course of business.  Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party.  Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party.  We are required to perform under a standby letter of credit when drawn upon by the guaranteed third party in the case of nonperformance by our customer.  The credit risk associated with standby letters of credit is essentially the same as that involved in extending loans to customers and is subject to normal loan underwriting procedures.  Collateral may be obtained based on management’s credit assessment of the customer.  At June 30, 2015, the maximum potential amount of future payments we could be required to make under these standby letters of credit was $25.0 million, of which $24.3 million is fully collateralized.  At June 30, 2015, we had a liability, which represents deferred income, of $1.2 million related to the standby letters of credit.  There are no recourse provisions that would enable us to recover any amounts from third parties.

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Guaranteed Preferred Beneficial Interests in Company's Junior Subordinated Deferrable Interest Debentures (Trust-Preferred Securities) and Interest Rate Swap Agreements (Details 2) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust-Preferred Securities) and Interest Rate Swaps
Hedge ineffectiveness for swaps	$ 0
Interest rate swap agreements
Liability Derivatives, Included in Other Liabilities
Fair value	5,454	$ 6,273
Notional amount	75,000	75,000
Collateral posted	$ 6,105	$ 6,805

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Other Items (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Other Items
Total assets	$ 7,864,510	$ 7,900,628	$ 7,864,510	$ 7,900,628	$ 7,775,033
Net Income	$ 15,305	$ 12,674	$ 31,475	$ 27,285
LNB
Other Items
Percent of shares to be converted into Company common stock			50.00%
Percent of shares to be exchanged for cash			50.00%
Shares of Company's common stock, per share			1.461
Cash, in dollars per share	$ 18.70		$ 18.70
Total assets	$ 1,238,000		$ 1,238,000
Net Income	$ 2,300		$ 4,100

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Guaranteed Preferred Beneficial Interests in Company's Junior Subordinated Deferrable Interest Debentures (Trust-Preferred Securities) and Interest Rate Swap Agreements (Details)	1 Months Ended	6 Months Ended
	Dec. 31, 2006	Jun. 30, 2015 USD ($) item	Dec. 31, 2014 USD ($)	Dec. 15, 2006 USD ($) $ / shares shares	Dec. 05, 2006 USD ($) $ / shares shares
Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust Preferred Securities) and Interest Rate Swaps
Number of statutory business trusts owned | item		2
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities		$ 103,094,000	$ 103,094,000
Interest rate swap agreements
Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust Preferred Securities) and Interest Rate Swaps
Number of agreements | item		3
Northwest Bancorp Statutory Trust IV | Interest rate swap agreements
Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust Preferred Securities) and Interest Rate Swaps
Number of agreements | item		2
Trust preferred investments
Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust Preferred Securities) and Interest Rate Swaps
Maximum period for which interest payment on the subordinated debentures can be deferred		5 years
Interest deferral		$ 0
Trust preferred investments | Northwest Bancorp Capital Trust III
Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust Preferred Securities) and Interest Rate Swaps
Cumulative trust preferred securities issued (in shares) | shares					50,000
Cumulative trust preferred securities issued, liquidation value per preferred security (in dollars per security) | $ / shares					$ 1,000
Total value of cumulative trust preferred securities issued					$ 50,000,000
Variable rate basis	three-month LIBOR
Spread on variable rate basis (as a percent)	1.38%
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities		$ 51,547,000
Trust preferred investments | Northwest Bancorp Capital Trust III | Swap 1 | Interest rate swap agreements
Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust Preferred Securities) and Interest Rate Swaps
Original term of swaps		10 years
Fixed rate (as a percent)		4.61%
Notional amount		$ 25,000,000
Trust preferred investments | Northwest Bancorp Statutory Trust IV
Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust Preferred Securities) and Interest Rate Swaps
Cumulative trust preferred securities issued (in shares) | shares				50,000
Cumulative trust preferred securities issued, liquidation value per preferred security (in dollars per security) | $ / shares				$ 1,000
Total value of cumulative trust preferred securities issued				$ 50,000,000
Variable rate basis	three-month LIBOR
Spread on variable rate basis (as a percent)	1.38%
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities		$ 51,547,000
Trust preferred investments | Northwest Bancorp Statutory Trust IV | Swap 2 | Interest rate swap agreements
Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust Preferred Securities) and Interest Rate Swaps
Original term of swaps		7 years
Fixed rate (as a percent)		3.85%
Notional amount		$ 25,000,000
Trust preferred investments | Northwest Bancorp Statutory Trust IV | Swap 3 | Interest rate swap agreements
Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust Preferred Securities) and Interest Rate Swaps
Original term of swaps		10 years
Fixed rate (as a percent)		4.09%
Notional amount		$ 25,000,000

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Basis of Presentation and Informational Disclosures (Detail)	Jun. 30, 2015 item
Nature of Operations
Number of banking locations	161

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Loans receivable (Details 11) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Credit quality indicators
Total loans	$ 6,124,657	$ 5,989,891
Pass
Credit quality indicators
Total loans	5,876,215	5,712,244
Special mention
Credit quality indicators
Total loans	57,290	60,598
Substandard
Credit quality indicators
Total loans	189,780	212,948
Doubtful
Credit quality indicators
Total loans	2	2,677
Loss
Credit quality indicators
Total loans	1,370	1,424
Special mention or substandard | Minimum
Credit quality indicators
Total loans	1,000
Personal Banking
Credit quality indicators
Total loans	3,905,390	3,830,331
Personal Banking | Pass
Credit quality indicators
Total loans	3,886,299	3,807,741
Personal Banking | Substandard
Credit quality indicators
Total loans	17,721	21,166
Personal Banking | Loss
Credit quality indicators
Total loans	1,370	1,424
Personal Banking | Residential mortgage loans
Credit quality indicators
Total loans	2,597,170	2,521,456
Personal Banking | Residential mortgage loans | Pass
Credit quality indicators
Total loans	2,584,438	2,507,269
Personal Banking | Residential mortgage loans | Substandard
Credit quality indicators
Total loans	11,362	12,763
Personal Banking | Residential mortgage loans | Loss
Credit quality indicators
Total loans	1,370	1,424
Personal Banking | Home equity loans
Credit quality indicators
Total loans	1,055,829	1,066,131
Personal Banking | Home equity loans | Pass
Credit quality indicators
Total loans	1,051,213	1,059,525
Personal Banking | Home equity loans | Substandard
Credit quality indicators
Total loans	4,616	6,606
Personal Banking | Other consumer loans
Credit quality indicators
Total loans	252,391	242,744
Personal Banking | Other consumer loans | Pass
Credit quality indicators
Total loans	250,648	240,947
Personal Banking | Other consumer loans | Substandard
Credit quality indicators
Total loans	1,743	1,797
Business Banking
Credit quality indicators
Total loans	2,219,267	2,159,560
Business Banking | Pass
Credit quality indicators
Total loans	1,989,916	1,904,503
Business Banking | Special mention
Credit quality indicators
Total loans	57,290	60,598
Business Banking | Substandard
Credit quality indicators
Total loans	172,059	191,782
Business Banking | Doubtful
Credit quality indicators
Total loans	2	2,677
Business Banking | Commercial real estate loans
Credit quality indicators
Total loans	1,859,743	1,801,184
Business Banking | Commercial real estate loans | Pass
Credit quality indicators
Total loans	1,688,449	1,618,269
Business Banking | Commercial real estate loans | Special mention
Credit quality indicators
Total loans	37,497	36,908
Business Banking | Commercial real estate loans | Substandard
Credit quality indicators
Total loans	133,797	145,502
Business Banking | Commercial real estate loans | Doubtful
Credit quality indicators
Total loans		505
Business Banking | Commercial loans
Credit quality indicators
Total loans	359,524	358,376
Business Banking | Commercial loans | Pass
Credit quality indicators
Total loans	301,467	286,234
Business Banking | Commercial loans | Special mention
Credit quality indicators
Total loans	19,793	23,690
Business Banking | Commercial loans | Substandard
Credit quality indicators
Total loans	38,262	46,280
Business Banking | Commercial loans | Doubtful
Credit quality indicators
Total loans	$ 2	$ 2,172

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Legal Proceedings

6 Months Ended

Jun. 30, 2015

Legal Proceedings

Legal Proceedings

(11)Legal Proceedings

We establish accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated.  As of June 30, 2015 we have not accrued for any legal proceedings based on our analysis of currently available information which is subject to significant judgment and a variety of assumptions and uncertainties.  Any such accruals are adjusted thereafter as appropriate to reflect changes in circumstances.  Due to the inherent subjectivity of assessments and unpredictability of outcomes of legal proceedings, any amounts accrued may not represent the ultimate loss to us from legal proceedings.

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Investment securities and impairment of investment securities (Tables)

6 Months Ended

Jun. 30, 2015

Investment securities and impairment of investment securities

Schedule of the portfolio of investment securities available-for-sale

The following table shows the portfolio of investment securities available-for-sale at June 30, 2015 (in thousands):

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding		Fair
	cost		gains	losses		value
Debt issued by the U.S. government and agencies:
Due in one year or less	$	21	—	—		21
Debt issued by government sponsored enterprises:
Due in one year or less	500		8	—		508
Due after one year through five years	320,553		466	(1,035	)	319,984
Due after five years through ten years	24,500		—	(28	)	24,472
Equity securities	1,417		515	—		1,932
Municipal securities:
Due in one year or less	1,085		3	—		1,088
Due after one year through five years	6,733		118	—		6,851
Due after five years through ten years	4,651		113	—		4,764
Due after ten years	48,627		1,651	(32	)	50,246
Corporate debt issues:
Due after ten years	17,002		2,324	(396	)	18,930
Residential mortgage-backed securities:
Fixed rate pass-through	65,398		2,693	(321	)	67,770
Variable rate pass-through	60,275		3,182	(8	)	63,449
Fixed rate non-agency CMOs	2,793		320	—		3,113
Fixed rate agency CMOs	201,346		579	(3,684	)	198,241
Variable rate agency CMOs	99,246		578	(36	)	99,788
Total residential mortgage-backed securities	429,058		7,352	(4,049	)	432,361
Total marketable securities available-for-sale	$	854,147	12,550	(5,540	)	861,157

The following table shows the portfolio of investment securities available-for-sale at December 31, 2014 (in thousands):

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding		Fair
	cost		gains	losses		value
Debt issued by the U.S. government and agencies:
Due in one year or less	$	25	—	—		25
Debt issued by government sponsored enterprises:
Due after one year through five years	310,172		287	(2,672	)	307,787
Due after five years through ten years	25,746		—	(28	)	25,718
Equity securities	2,591		682	(116	)	3,157
Municipal securities:
Due in one year or less	810		15	—		825
Due after one year through five years	7,878		132	—		8,010
Due after five years through ten years	6,965		115	—		7,080
Due after ten years	51,839		2,391	—		54,230
Corporate debt issues:
Due after ten years	18,267		2,579	(419	)	20,427
Residential mortgage-backed securities:
Fixed rate pass-through	72,852		3,149	(124	)	75,877
Variable rate pass-through	66,140		3,466	(8	)	69,598
Fixed rate non-agency CMOs	3,162		246	—		3,408
Fixed rate agency CMOs	226,413		685	(5,331	)	221,767
Variable rate agency CMOs	113,842		657	(37	)	114,462
Total residential mortgage-backed securities	482,409		8,203	(5,500	)	485,112
Total marketable securities available-for-sale	$	906,702	14,404	(8,735	)	912,371

Schedule of the portfolio of investment securities held-to-maturity

The following table shows the portfolio of investment securities held-to-maturity at June 30, 2015 (in thousands):

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding	Fair
	cost		gains	losses	value
Municipal securities:
Due after five years through ten years	$	4,641	36	—	4,677
Due after ten years	25,831		544	—	26,375
Residential mortgage-backed securities:
Fixed rate pass-through	7,292		408	—	7,700
Variable rate pass-through	3,927		96	—	4,023
Fixed rate agency CMOs	18,762		392	—	19,154
Variable rate agency CMOs	1,011		17	—	1,028
Total residential mortgage-backed securities	30,992		913	—	31,905
Total marketable securities held-to-maturity	$	61,464	1,493	—	62,957

The following table shows the portfolio of investment securities held-to-maturity at December 31, 2014 (in thousands):

			Gross	Gross
			unrealized	unrealized
	Amortized		holding	holding	Fair
	cost		gains	losses	value
Municipal securities:
Due after five years through ten years	$	10,207	141	—	10,348
Due after ten years	56,545		1,314	—	57,859
Residential mortgage-backed securities:
Fixed rate pass-through	8,236		477	—	8,713
Variable rate pass-through	4,273		122	—	4,395
Fixed rate agency CMOs	23,382		531	—	23,913
Variable rate agency CMOs	1,052		12	—	1,064
Total residential mortgage-backed securities	36,943		1,142	—	38,085
Total marketable securities held-to-maturity	$	103,695	2,597	—	106,292

Schedule of the fair value and gross unrealized losses on investment securities, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position

The following table shows the fair value of and gross unrealized losses on investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2015 (in thousands):

	Less than 12 months				12 months or more			Total
			Unrealized			Unrealized			Unrealized
	Fair value		loss		Fair value	loss		Fair value	loss
U.S. government and agencies	$	101,837	(340	)	125,031	(723	)	226,868	(1,063	)
Municipal securities	750		(32	)	—	—		750	(32	)
Corporate issues	—		—		2,028	(396	)	2,028	(396	)
Residential mortgage- backed securities - agency	18,148		(73	)	166,264	(3,976	)	184,412	(4,049	)
Total temporarily impaired securities	$	120,735	(445	)	293,323	(5,095	)	414,058	(5,540	)

The following table shows the fair value of and gross unrealized losses on investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2014 (in thousands):

	Less than 12 months				12 months or more			Total
			Unrealized			Unrealized			Unrealized
	Fair value		loss		Fair value	loss		Fair value	loss
U.S. government and agencies	$	28,878	(67	)	244,828	(2,633	)	273,706	(2,700	)
Corporate debt issues	—		—		2,003	(419	)	2,003	(419	)
Equity securities	506		(116	)	—	—		506	(116	)
Residential mortgage- backed securities - agency	20,832		(79	)	195,505	(5,421	)	216,337	(5,500	)
Total temporarily impaired securities	$	50,216	(262	)	442,336	(8,473	)	492,552	(8,735	)

Schedule of the cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold

The table below shows a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the quarter ended (in thousands):

	2015			2014
Beginning balance at April 1, (1)	$	8,865		10,334
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized	—			—
Reduction for losses realized during the quarter	(16		)	(170	)
Reduction for securities called realized during the quarter	(360		)
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized	—			—
Ending balance at June 30,	$	8,489		10,164

(1) – The beginning balance represents credit losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.

The table below shows a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the six months ended (in thousands):

	2015			2014
Beginning balance at January 1, (1)	$	8,894		10,342
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized	—			—
Reduction for losses realized during the six months	(45		)	(178	)
Reduction for securities called realized during the six months	(360		)
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized	—			—
Ending balance at June 30,	$	8,489		10,164

(1) – The beginning balance represents credit losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.

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Loans receivable (Details 9) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015 USD ($) item	Jun. 30, 2015 USD ($) item	Jun. 30, 2014 USD ($) item
Troubled debt restructurings by type of modification
Number of re-modified TDRs | item	1	2	4
Total	$ 45	$ 128	$ 158
Rate
Troubled debt restructurings by type of modification
Total		83
Maturity date
Troubled debt restructurings by type of modification
Total			135
Other
Troubled debt restructurings by type of modification
Total	$ 45	$ 45	$ 23
Personal Banking
Troubled debt restructurings by type of modification
Number of re-modified TDRs | item	1	2	1
Total	$ 45	$ 128	$ 77
Personal Banking | Rate
Troubled debt restructurings by type of modification
Total		83
Personal Banking | Maturity date
Troubled debt restructurings by type of modification
Total			$ 77
Personal Banking | Other
Troubled debt restructurings by type of modification
Total	$ 45	$ 45
Personal Banking | Residential mortgage loans
Troubled debt restructurings by type of modification
Number of re-modified TDRs | item	1	1	1
Total	$ 45	$ 45	$ 77
Personal Banking | Residential mortgage loans | Maturity date
Troubled debt restructurings by type of modification
Total			$ 77
Personal Banking | Residential mortgage loans | Other
Troubled debt restructurings by type of modification
Total	$ 45	$ 45
Personal Banking | Home equity loans
Troubled debt restructurings by type of modification
Number of re-modified TDRs | item		1
Total		$ 83
Personal Banking | Home equity loans | Rate
Troubled debt restructurings by type of modification
Total		$ 83
Business Banking
Troubled debt restructurings by type of modification
Number of re-modified TDRs | item			3
Total			$ 81
Business Banking | Maturity date
Troubled debt restructurings by type of modification
Total			58
Business Banking | Other
Troubled debt restructurings by type of modification
Total			$ 23
Business Banking | Commercial real estate loans
Troubled debt restructurings by type of modification
Number of re-modified TDRs | item			2
Total			$ 76
Business Banking | Commercial real estate loans | Maturity date
Troubled debt restructurings by type of modification
Total			58
Business Banking | Commercial real estate loans | Other
Troubled debt restructurings by type of modification
Total			$ 18
Business Banking | Commercial loans
Troubled debt restructurings by type of modification
Number of re-modified TDRs | item			1
Total			$ 5
Business Banking | Commercial loans | Other
Troubled debt restructurings by type of modification
Total			$ 5

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Loans receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Loans receivable
Total loans receivable, gross	$ 6,260,454		$ 6,129,584
Deferred loan costs	10,251		6,095
Allowance for loan losses	(59,057)	$ (67,298)	(67,518)	$ (71,442)	$ (76,234)	$ (71,348)
Total loans, net	6,065,600		5,922,373
Residential mortgage loans
Loans receivable
Undisbursed loan proceeds	(10,285)		(10,879)
Commercial real estate loans
Loans receivable
Undisbursed loan proceeds	(126,870)		(73,760)
Commercial loans
Loans receivable
Undisbursed loan proceeds	(8,893)		(61,149)
Personal Banking
Loans receivable
Total loans receivable, gross	3,905,424		3,835,115
Allowance for loan losses	(14,581)	(14,955)	(16,249)	(19,909)	(19,705)	(20,607)
Personal Banking | Residential mortgage loans
Loans receivable
Total loans receivable, gross	2,597,204		2,526,240
Allowance for loan losses	(4,892)	(5,077)	(5,581)	(7,767)	(7,467)	(7,875)
Personal Banking | Home equity loans
Loans receivable
Total loans receivable, gross	1,055,829		1,066,131
Allowance for loan losses	(3,445)	(4,043)	(4,550)	(6,516)	(6,958)	(7,245)
Personal Banking | Other consumer loans
Loans receivable
Total loans receivable, gross	252,391		242,744
Allowance for loan losses	(6,244)	(5,835)	(6,118)	(5,626)	(5,280)	(5,487)
Business Banking
Loans receivable
Total loans receivable, gross	2,355,030		2,294,469
Allowance for loan losses	(44,476)	(48,365)	(46,904)	(47,187)	(52,378)	(46,079)
Business Banking | Commercial real estate loans
Loans receivable
Total loans receivable, gross	1,986,613		1,874,944
Allowance for loan losses	(30,163)	(33,252)	(33,389)	(35,081)	(36,209)	(35,199)
Business Banking | Commercial loans
Loans receivable
Total loans receivable, gross	368,417		419,525
Allowance for loan losses	$ (14,313)	$ (15,113)	$ (13,515)	$ (12,106)	$ (16,169)	$ (10,880)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net Income	$ 15,305	$ 12,674	$ 31,475	$ 27,285
Net unrealized holding gains/ (losses) on marketable securities:
Unrealized holding gains/ (losses) net of tax of $1,139, $(1,997), $(746) and $(5,576), respectively	(1,788)	3,123	1,164	8,719
Reclassification adjustment for gains included in net income, net of tax of $179, $130, $222 and $1,348, respectively	(279)	(204)	(347)	(2,108)
Net unrealized holding gains on marketable securities	(2,067)	2,919	817	6,611
Change in fair value of interest rate swaps, net of tax of $(263), $(53), $(287) and $(188), respectively	488	98	532	349
Defined benefit plan:
Reclassification adjustment for prior period service costs included in net income, net of tax of $(140), $74, $(280) and $149, respectively	219	(138)	438	(276)
Other comprehensive income/ (loss)	(1,360)	2,879	1,787	6,684
Total comprehensive income	$ 13,945	$ 15,553	$ 33,262	$ 33,969

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF CASH FLOWS
Interest on deposits and borrowings, interest credited to deposit accounts	$ 10,508	$ 11,608

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Disclosures About Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Disclosures About Fair Value of Financial Instruments
Significant unrealized appreciation or depreciation in financial instruments	$ 0	$ 0
Financial assets:
Securities available-for-sale	861,157	912,371
Securities held-to-maturity	62,957	106,292
Accrued interest receivable	18,682	18,623
Financial liabilities:
Borrowed funds	899,056	888,109
Junior subordinated debentures	103,094	103,094
Assets transferred between Level 1 and Level 2	0
Liabilities transferred between Level 1 and Level 2	0
Level 1
Financial assets:
Cash and cash equivalents	292,948	240,706
Securities available-for-sale	1,932	3,157
Accrued interest receivable	18,682	18,623
Total financial assets	313,562	262,486
Financial liabilities:
Savings and checking accounts	4,296,954	4,154,228
Borrowed funds	138,687	162,714
Accrued interest payable	1,302	936
Total financial liabilities	4,436,943	4,317,878
Level 2
Financial assets:
Securities available-for-sale	850,002	898,617
Securities held-to-maturity	62,957	106,292
Total financial assets	912,959	1,004,909
Financial liabilities:
Cash flow hedges - swaps	5,454	6,273
Total financial liabilities	5,454	6,273
Level 3
Financial assets:
Securities available-for-sale	9,223	10,597
Loans receivable, net	6,389,381	6,240,079
Total financial assets	6,398,604	6,250,676
Financial liabilities:
Time deposits	1,413,605	1,498,539
Borrowed funds	786,631	756,898
Junior subordinated debentures	108,627	109,435
Total financial liabilities	2,308,863	2,364,872
Carrying amount
Financial assets:
Cash and cash equivalents	292,948	240,706
Securities available-for-sale	861,157	912,371
Securities held-to-maturity	61,464	103,695
Loans receivable, net	6,065,600	5,922,373
Accrued interest receivable	18,682	18,623
FHLB Stock	38,066	33,293
Total financial assets	7,337,917	7,231,061
Financial liabilities:
Savings and checking accounts	4,296,954	4,154,228
Time deposits	1,397,528	1,478,314
Borrowed funds	899,056	888,109
Junior subordinated debentures	103,094	103,094
Cash flow hedges - swaps	5,454	6,273
Accrued interest payable	1,302	936
Total financial liabilities	6,703,388	6,630,954
Estimated fair value
Financial assets:
Cash and cash equivalents	292,948	240,706
Securities available-for-sale	861,157	912,371
Securities held-to-maturity	62,957	106,292
Loans receivable, net	6,389,381	6,240,079
Accrued interest receivable	18,682	18,623
FHLB Stock	38,066	33,293
Total financial assets	7,663,191	7,551,364
Financial liabilities:
Savings and checking accounts	4,296,954	4,154,228
Time deposits	1,413,605	1,498,539
Borrowed funds	925,318	919,612
Junior subordinated debentures	108,627	109,435
Cash flow hedges - swaps	5,454	6,273
Accrued interest payable	1,302	936
Total financial liabilities	$ 6,751,260	$ 6,689,023

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Loans receivable (Tables)

6 Months Ended

Jun. 30, 2015

Loans receivable

Summary of loans receivable

The following table shows a summary of our loans receivable at June 30, 2015 and December 31, 2014 (in thousands):

	June 30,			December 31,
	2015			2014
Personal Banking:
Residential mortgage loans	$	2,597,204		2,526,240
Home equity loans	1,055,829			1,066,131
Other consumer loans	252,391			242,744
Total Personal Banking	3,905,424			3,835,115
Business Banking:
Commercial real estate	1,986,613			1,874,944
Commercial loans	368,417			419,525
Total Business Banking	2,355,030			2,294,469
Total loans receivable, gross	6,260,454			6,129,584
Deferred loan costs	10,251			6,095
Allowance for loan losses	(59,057		)	(67,518	)
Undisbursed loan proceeds:
Residential mortgage loans	(10,285		)	(10,879	)
Commercial real estate	(126,870		)	(73,760	)
Commercial loans	(8,893		)	(61,149	)
Total loans receivable, net	$	6,065,600		5,922,373

Schedule of the changes in the allowance for losses on loans receivable

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the quarter ended June 30, 2015 (in thousands):

	Balance June 30, 2015		Current period provision		Charge-offs		Recoveries	Balance March 31, 2015
Personal Banking:
Residental mortgage loans	$	4,892	76		(278	)	17	5,077
Home equity loans	3,445		(187	)	(542	)	131	4,043
Other consumer loans	6,244		1,865		(1,759	)	303	5,835
Total Personal Banking	14,581		1,754		(2,579	)	451	14,955
Business Banking:
Commercial real estate loans	30,163		(1,558	)	(3,439	)	1,908	33,252
Commercial loans	14,313		4,832		(6,356	)	724	15,113
Total Business Banking	44,476		3,274		(9,795	)	2,632	48,365
Unallocated (1)	—		(3,978	)	—		—	3,978
Total	$	59,057	1,050		(12,374	)	3,083	67,298

(1) – Due to enhancements in our allowance for loan losses process we allocated the previously unallocated allowance using both qualitative and quantitative factors.

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the quarter ended June 30, 2014 (in thousands):

	Balance June 30, 2014		Current period provision	Charge-offs		Recoveries	Balance March 31, 2014
Personal Banking:
Residental mortgage loans	$	7,767	1,142	(883	)	41	7,467
Home equity loans	6,516		72	(593	)	79	6,958
Other consumer loans	5,626		1,495	(1,450	)	301	5,280
Total Personal Banking	19,909		2,709	(2,926	)	421	19,705
Business Banking:
Commercial real estate loans	35,081		364	(2,578	)	1,086	36,209
Commercial loans	12,106		5,017	(9,516	)	436	16,169
Total Business Banking	47,187		5,381	(12,094	)	1,522	52,378
Unallocated	4,346		195	—		—	4,151
Total	$	71,442	8,285	(15,020	)	1,943	76,234

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the six months ended June 30, 2015 (in thousands):

	Balance June 30, 2015		Current period provision		Charge-offs		Recoveries	Balance December 31, 2014
Personal Banking:
Residental mortgage loans	$	4,892	(206	)	(613	)	130	5,581
Home equity loans	3,445		(400	)	(884	)	179	4,550
Other consumer loans	6,244		3,135		(3,699	)	690	6,118
Total Personal Banking	14,581		2,529		(5,196	)	999	16,249
Business Banking:
Commercial real estate loans	30,163		(1,316	)	(4,552	)	2,642	33,389
Commercial loans	14,313		5,102		(7,080	)	2,776	13,515
Total Business Banking	44,476		3,786		(11,632	)	5,418	46,904
Unallocated (1)	—		(4,365	)	—		—	4,365
Total	$	59,057	1,950		(16,828	)	6,417	67,518

(1) - Due to enhancements in our allowance for loan losses process we allocated the previously unallocated allowance using both qualitative and quantitative factors.

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the six months ended June 30, 2014 (in thousands):

	Balance June 30, 2014		Current period provision		Charge-offs		Recoveries	Balance December 31, 2013
Personal Banking:
Residental mortgage loans	$	7,767	1,177		(1,342	)	57	7,875
Home equity loans	6,516		109		(965	)	127	7,245
Other consumer loans	5,626		2,679		(3,166	)	626	5,487
Total Personal Banking	19,909		3,965		(5,473	)	810	20,607
Business Banking:
Commercial real estate loans	35,081		1,685		(3,510	)	1,707	35,199
Commercial loans	12,106		10,436		(10,286	)	1,076	10,880
Total Business Banking	47,187		12,121		(13,796	)	2,783	46,079
Unallocated	4,346		(316	)	—		—	4,662
Total	$	71,442	15,770		(19,269	)	3,593	71,348

Schedule of information related to the loan portfolio by portfolio segment and by class of financing receivable

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at June 30, 2015 (in thousands):

	Recorded investment in loans receivable		Allowance for loan losses	Recorded investment in loans on nonaccrual (1)	Recorded investment in loans past due 90 days or more and still accruing	TDRs	Allowance related to TDRs	Additional commitments to customers with loans classified as TDRs
Personal Banking:
Residental mortgage loans	$	2,597,170	4,892	18,977	6	6,340	1,008	—
Home equity loans	1,055,829		3,445	6,482	—	2,588	276	—
Other consumer loans	252,391		6,244	2,638	358	—	—	—
Total Personal Banking	3,905,390		14,581	28,097	364	8,928	1,284	—
Business Banking:
Commercial real estate loans	1,859,743		30,163	22,640	—	37,028	1,718	141
Commercial loans	359,524		14,313	7,259	21	10,228	787	883
Total Business Banking	2,219,267		44,476	29,899	21	47,256	2,505	1,024
Total	$	6,124,657	59,057	57,996	385	56,184	3,789	1,024

(1) Includes $15.4 million of nonaccrual TDRs.

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at December 31, 2014 (in thousands):

	Recorded investment in loans receivable		Allowance for loan losses	Recorded investment in loans on nonaccrual (1)	Recorded investment in loans past due 90 days or more and still accruing	TDRs	Allowance related to TDRs	Additional commitments to customers with loans classified as TDRs
Personal Banking:
Residental mortgage loans	$	2,521,456	5,581	21,194	8	6,574	1,133	—
Home equity loans	1,066,131		4,550	9,569	—	2,412	229	—
Other consumer loans	242,744		6,118	2,820	206	—	—	—
Total Personal Banking	3,830,331		16,249	33,583	214	8,986	1,362	—
Business Banking:
Commercial real estate loans	1,801,184		33,389	38,647	—	41,917	4,938	449
Commercial loans	358,376		13,515	7,578	21	10,885	1,095	814
Total Business Banking	2,159,560		46,904	46,225	21	52,802	6,033	1,263
Total	$	5,989,891	63,153	79,808	235	61,788	7,395	1,263

(1) Includes $24.5 million of nonaccrual TDRS.

Schedule of geographical and delinquency information related to the loan portfolio by portfolio segment and class of financing receivable

The following table provides geographical and delinquency information related to the loan portfolio by portfolio segment and class of financing receivable at June 30, 2015 (in thousands):

	Pennsylvania			New York		Ohio		Maryland		Other		Total
Recorded investment in loans receivable:
Personal Banking:
Residential mortgage loans	$	2,223,206		165,217		18,379		133,981		56,387		2,597,170
Home equity loans	897,285			119,459		8,447		25,732		4,906		1,055,829
Other consumer loans	232,797			11,103		3,740		1,396		3,355		252,391
Total Personal Banking	3,353,288			295,779		30,566		161,109		64,648		3,905,390
Business Banking:
Commercial real estate loans	973,777			689,043		24,270		115,796		56,857		1,859,743
Commercial loans	273,771			53,881		16,717		6,080		9,075		359,524
Total Business Banking	1,247,548			742,924		40,987		121,876		65,932		2,219,267
Total	$	4,600,836		1,038,703		71,553		282,985		130,580		6,124,657
Percentage of total loans receivable	75.1		%	17.0	%	1.2	%	4.6	%	2.1	%	100.0	%

	Pennsylvania			New York		Ohio		Maryland		Other		Total
Loans 90 or more days delinquent:
Personal Banking:
Residential mortgage loans	$	11,498		1,553		58		1,820		1,196		16,125
Home equity loans	2,804			766		—		1,046		—		4,616
Other consumer loans	2,082			103		14		—		—		2,199
Total Personal Banking	16,384			2,422		72		2,866		1,196		22,940
Business Banking:
Commercial real estate loans	10,758			1,243		49		271		352		12,673
Commercial loans	1,845			—		13		—		—		1,858
Total Business Banking	12,603			1,243		62		271		352		14,531
Total	$	28,987		3,665		134		3,137		1,548		37,471
Percentage of total loans 90 or more days delinquent	77.3		%	9.8	%	0.4	%	8.4	%	4.1	%	100.0	%

The following table provides geographical and delinquency information related to the loan portfolio by portfolio segment and class of financing receivable at December 31, 2014 (in thousands):

	Pennsylvania			New York		Ohio		Maryland		Other		Total
Recorded investment in loans receivable:
Personal Banking:
Residential mortgage loans	$	2,151,361		161,445		18,486		134,228		55,936		2,521,456
Home equity loans	909,139			115,459		9,087		27,203		5,243		1,066,131
Other consumer loans	225,088			9,961		3,132		1,328		3,235		242,744
Total Personal Banking	3,285,588			286,865		30,705		162,759		64,414		3,830,331
Business Banking:
Commercial real estate loans	1,013,632			590,934		24,901		114,850		56,867		1,801,184
Commercial loans	243,159			83,252		15,826		7,817		8,322		358,376
Total Business Banking	1,256,791			674,186		40,727		122,667		65,189		2,159,560
Total	$	4,542,379		961,051		71,432		285,426		129,603		5,989,891
Percentage of total loans receivable	75.8		%	16.0	%	1.2	%	4.8	%	2.2	%	100.0	%

	Pennsylvania			New York		Ohio		Maryland		Other		Total
Loans 90 or more days delinquent:
Personal Banking:
Residential mortgage loans	$	12,282		1,237		710		1,678		1,789		17,696
Home equity loans	4,474			936		35		1,058		103		6,606
Other consumer loans	2,388			55		7		—		—		2,450
Total Personal Banking	19,144			2,228		752		2,736		1,892		26,752
Business Banking:
Commercial real estate loans	8,827			1,072		—		270		930		11,099
Commercial loans	2,659			284		—		207		325		3,475
Total Business Banking	11,486			1,356		—		477		1,255		14,574
Total	$	30,630		3,584		752		3,213		3,147		41,326
Percentage of total loans 90 or more days delinquent	74.1		%	8.7	%	1.8	%	7.8	%	7.6	%	100.0	%

Schedule of the composition of impaired loans by portfolio segment and by class of financing receivable

The following table provides information related to the composition of impaired loans by portfolio segment and by class of financing receivable at and for the six months ended June 30, 2015 (in thousands):

	Nonaccrual loans 90 or more days delinquent		Nonaccrual loans less than 90 days delinquent	Loans less than 90 days delinquent reviewed for impairment	TDRs less than 90 days delinquent not included elsewhere	Total impaired loans	Average recorded investment in impaired loans	Interest income recognized on impaired loans
Personal Banking:
Residental mortgage loans	$	16,125	2,852	—	5,237	24,214	24,895	433
Home equity loans	4,616		1,866	—	2,127	8,609	10,097	223
Other consumer loans	2,199		439	—	—	2,638	2,645	44
Total Personal Banking	22,940		5,157	—	7,364	35,461	37,637	700
Business Banking:
Commercial real estate loans	12,673		9,967	26,960	16,615	66,215	79,416	1,564
Commercial loans	1,858		5,401	1,736	4,806	13,801	18,232	345
Total Business Banking	14,531		15,368	28,696	21,421	80,016	97,648	1,909
Total	$	37,471	20,525	28,696	28,785	115,477	135,285	2,609

The following table provides information related to the composition of impaired loans by portfolio segment and by class of financing receivable at and for the year ended December 31, 2014 (in thousands):

	Nonaccrual loans 90 or more days delinquent		Nonaccrual loans less than 90 days delinquent	Loans less than 90 days delinquent reviewed for impairment	TDRs less than 90 days delinquent not included elsewhere	Total impaired loans	Average recorded investment in impaired loans	Interest income recognized on impaired loans
Personal Banking:
Residental mortgage loans	$	17,696	3,498	—	5,845	27,039	28,227	817
Home equity loans	6,606		2,963	—	1,706	11,275	11,753	485
Other consumer loans	2,450		370	—	—	2,820	2,383	66
Total Personal Banking	26,752		6,831	—	7,551	41,134	42,363	1,368
Business Banking:
Commercial real estate loans	11,099		27,548	26,400	12,128	77,175	90,187	3,589
Commercial loans	3,475		4,103	5,266	6,026	18,870	27,088	914
Total Business Banking	14,574		31,651	31,666	18,154	96,045	117,275	4,503
Total	$	41,326	38,482	31,666	25,705	137,179	159,638	5,871

Schedule of the evaluation of impaired loans by portfolio segment and by class of financing receivable

The following table provides information related to the evaluation of impaired loans by portfolio segment and by class of financing receivable at June 30, 2015 (in thousands):

	Loans collectively evaluated for impairment		Loans individually evaluated for impairment	Loans individually evaluated for impairment for which there is a related impairment reserve	Related impairment reserve	Loans individually evaluated for impairment for which there is no related reserve
Personal Banking:
Residental mortgage loans	$	2,590,038	7,132	7,132	1,221	—
Home equity loans	1,053,241		2,588	2,588	276	—
Other consumer loans	252,294		97	97	2	—
Total Personal Banking	3,895,573		9,817	9,817	1,499	—
Business Banking:
Commercial real estate loans	1,798,992		60,751	30,513	2,117	30,238
Commercial loans	348,670		10,854	7,245	705	3,609
Total Business Banking	2,147,662		71,605	37,758	2,822	33,847
Total	$	6,043,235	81,422	47,575	4,321	33,847

The following table provides information related to the evaluation of impaired loans by portfolio segment and by class of financing receivable at December 31, 2014 (in thousands):

	Loans collectively evaluated for impairment		Loans individually evaluated for impairment	Loans individually evaluated for impairment for which there is a related impairment reserve	Related impairment reserve	Loans individually evaluated for impairment for which there is no related reserve
Personal Banking:
Residental mortgage loans	$	2,514,060	7,396	7,396	1,116	—
Home equity loans	1,063,741		2,390	2,390	246	—
Other consumer loans	242,678		66	66	1	—
Total Personal Banking	3,820,479		9,852	9,852	1,363	—
Business Banking:
Commercial real estate loans	1,734,864		66,320	42,869	6,189	23,451
Commercial loans	343,416		14,960	10,938	1,378	4,022
Total Business Banking	2,078,280		81,280	53,807	7,567	27,473
Total	$	5,898,759	91,132	63,659	8,930	27,473

Schedule of roll forward of troubled debt restructurings

The following table provides a roll forward of troubled debt restructurings for the periods indicated (in thousands):

	For the quarters ended June 30,
	2015				2014
	Number of contracts				Number of contracts
Beginning TDR balance:	242	$	60,645		258	$	74,511
New TDRs	4	386			6	1,343
Re-modified TDRs	1	45			—	—
Net paydowns		(3,617		)		(2,526		)
Charge-offs:
Residential mortgage loans	—	—			—	—
Home equity loans	1	(68		)	1	(130		)
Commercial real estate loans	1	(9		)	—	—
Commercial loans	—	—			7	(8,244		)
Paid-off loans:
Residential mortgage loans	1	(53		)	—	—
Home equity loans	—	—			1	(39		)
Commercial real estate loans	6	(926		)	4	(561		)
Commercial loans	6	(219		)	3	(561		)
Ending TDR balance:	231	$	56,184		248	$	63,793
Accruing TDRs		$	40,741			$	39,844
Non-accrual TDRs		15,443				23,949

The following table provides a roll forward of troubled debt restructurings for the periods indicated (in thousands):

	For the six months ended June 30,
	2015				2014
	Number of contracts				Number of contracts
Beginning TDR balance:	248	$	61,788		262	$	79,166
New TDRs	6	498			13	2,652
Re-modified TDRs	2	130			4	159
Net paydowns		(4,440		)		(7,020		)
Charge-offs:
Residential mortgage loans	—	—			—	—
Home equity loans	3	(99		)	1	(130		)
Commercial real estate loans	2	(23		)	2	(31		)
Commercial loans	2	(387		)	8	(8,251		)
Paid-off loans:
Residential mortgage loans	1	(53		)	—	—
Home equity loans	1	(6		)	1	(39		)
Commercial real estate loans	8	(1,005		)	6	(838		)
Commercial loans	6	(219		)	9	(1,875		)
Ending TDR balance:	231	$	56,184		248	$	63,793
Accruing TDRs		$	40,741			$	39,844
Non-accrual TDRs		15,443				23,949

Schedule of troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable

The following table provides information related to troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated (dollars in thousands):

	For the quarter ended June 30, 2015					For the six months ended June 30, 2015
	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Troubled debt restructurings:
Personal Banking:
Residential mortgage loans	2	$	120	119	—	4	$	232	230	1
Home equity loans	1	2		2	—	2	87		85	17
Other consumer loans	—	—		—	—	—	—		—	—
Total Personal Banking	3	122		121	—	6	319		315	18
Business Banking:
Commercial real estate loans	1	12		12	1	1	12		12	1
Commercial loans	1	297		294	29	1	297		294	29
Total Business Banking	2	309		306	30	2	309		306	30
Total	5	$	431	427	30	8	$	628	621	48
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Personal Banking:
Residential mortgage loans	1	$	251	250	—	1	$	251	250	—
Home equity loans	1	23		21	—	1	23		21	—
Other consumer loans	—	—		—	—	—	—		—	—
Total Personal Banking	2	274		271	—	2	274		271	—
Business Banking:
Commercial real estate loans	—	—		—	—	—	—		—	—
Commercial loans	—	—		—	—	1	50		—	—
Total Business Banking	—	—		—	—	1	50		—	—
Total	2	$	274	271	—	3	$	324	271	—

The following table provides information related to troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated (dollars in thousands):

	For the quarter ended June 30, 2014					For the six months months ended June 30, 2014
	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Troubled debt restructurings:
Personal Banking:
Residential mortgage loans	3	$	632	575	65	9	$	1,922	1,860	184
Home equity loans	2	376		346	2	2	376		346	2
Other consumer loans	—	—		—	—	—	—		—	—
Total Personal Banking	5	1,008		921	67	11	2,298		2,206	186
Business Banking:
Commercial real estate loans	—	—		—	—	3	89		82	32
Commercial loans	1	335		331	24	3	424		446	35
Total Business Banking	1	335		331	24	6	513		528	67
Total	6	$	1,343	1,252	91	17	$	2,811	2,734	253
Troubled debt restructurings modified within the previous twelve months that have subsequently defaulted:
Personal Banking:
Residential mortgage loans	—	$	—	—	—	—	$	—	—	—
Home equity loans	—	—		—	—	—	—		—	—
Other consumer loans	—	—		—	—	—	—		—	—
Total Personal Banking	—	—		—	—	—	—		—	—
Business Banking:
Commercial real estate loans	2	128		126	35	2	128		126	35
Commercial loans	1	7,444		378	—	1	7,444		378	—
Total Business Banking	3	7,572		504	35	3	7,572		504	35
Total	3	$	7,572	504	35	3	$	7,572	504	35

Schedule of troubled debt restructurings (including re-modified TDRs) by type of modification by portfolio segment and by class of financing receivable

The following table provides information as of June 30, 2015 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended June 30, 2015 (dollars in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	2	$	74	—	—	45	119
Home equity loans	1	—		—	2	—	2
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	3	74		—	2	45	121
Business Banking:
Commercial real estate loans	1	—		—	12	—	12
Commercial loans	1	—		—	294	—	294
Total Business Banking	2	—		—	306	—	306
Total	5	$	74	—	308	45	427

The following table provides information as of June 30, 2014 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended June 30, 2014 (dollars in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	3	$	—	—	575	—	575
Home equity loans	2	—		—	346	—	346
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	5	—		—	921	—	921
Business Banking:
Commercial real estate loans	—	—		—	—	—	—
Commercial loans	1	—		—	—	331	331
Total Business Banking	1	—		—	—	331	331
Total	6	$	—	—	921	331	1,252

The following table provides information as of June 30, 2015 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the six months ended June 30, 2015 (dollars in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	4	$	74	—	111	45	230
Home equity loans	2	83		—	2	—	85
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	6	157		—	113	45	315
Business Banking:
Commercial real estate loans	1	—		—	12	—	12
Commercial loans	1	—		—	294	—	294
Total Business Banking	2	—		—	306	—	306
Total	8	$	157	—	419	45	621

The following table provides information as of June 30, 2014 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the six months ended June 30, 2014 (dollars in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	9	$	—	—	1,860	—	1,860
Home equity loans	2	—		—	346	—	346
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	11	—		—	2,206	—	2,206
Business Banking:
Commercial real estate loans	3	—		—	58	24	82
Commercial loans	3	—		110	—	336	446
Total Business Banking	6	—		110	58	360	528
Total	17	$	—	110	2,264	360	2,734

Schedule of re-modified troubled debt restructurings by portfolio segment and by class of financing receivable

The following table provides information related to re-modified troubled debt restructurings by portfolio segment and by class of financing receivable for the quarter ended June 30, 2015 (dollars in thousands):

	Number of re-	Type of re-modification
	modified TDRs	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	1	$	—	—	—	45	45
Home equity loans	—	—		—	—	—	—
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	1	—		—	—	45	45
Business Banking:
Commercial real estate loans	—	—		—	—	—	—
Commercial loans	—	—		—	—	—	—
Total Business Banking	—	—		—	—	—	—
Total	1	$	—	—	—	45	45

The following table provides information related to re-modified troubled debt restructurings by portfolio segment and by class of financing receivable for the six months ended June 30, 2015 (dollars in thousands):

	Number of re-	Type of re-modification
	modified TDRs	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	1	$	—	—	—	45	45
Home equity loans	1	83		—	—	—	83
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	2	83		—	—	45	128
Business Banking:
Commercial real estate loans	—	—		—	—	—	—
Commercial loans	—	—		—	—	—	—
Total Business Banking	—	—		—	—	—	—
Total	2	$	83	—	—	45	128

The following table provides information related to re-modified troubled debt restructurings by portfolio segment and by class of financing receivable for the six months ended June 30, 2014 (dollars in thousands):

	Number of re-	Type of re-modification
	modified TDRs	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residental mortgage loans	1	$	—	—	77	—	77
Home equity loans	—	—		—	—	—	—
Other consumer loans	—	—		—	—	—	—
Total Personal Banking	1	—		—	77	—	77
Business Banking:
Commercial real estate loans	2	—		—	58	18	76
Commercial loans	1	—		—	—	5	5
Total Business Banking	3	—		—	58	23	81
Total	4	$	—	—	135	23	158

Schedule of loan delinquencies

The following table provides information related to loan payment delinquencies at June 30, 2015 (in thousands):

	30-59 Days delinquent		60-89 Days delinquent	90 Days or greater delinquent	Total delinquency	Current	Recorded investment in loans receivable
Personal Banking:
Residential mortgage loans	$	3,250	5,815	16,125	25,190	2,571,980	2,597,170
Home equity loans	3,768		2,090	4,616	10,474	1,045,355	1,055,829
Other consumer loans	5,116		1,767	2,199	9,082	243,309	252,391
Total Personal Banking	12,134		9,672	22,940	44,746	3,860,644	3,905,390
Business Banking:
Commercial real estate loans	3,788		4,919	12,673	21,380	1,838,363	1,859,743
Commercial loans	1,363		159	1,858	3,380	356,144	359,524
Total Business Banking	5,151		5,078	14,531	24,760	2,194,507	2,219,267
Total	$	17,285	14,750	37,471	69,506	6,055,151	6,124,657

The following table provides information related to loan payment delinquencies at December 31, 2014 (in thousands):

	30-59 Days delinquent		60-89 Days delinquent	90 Days or greater delinquent	Total delinquency	Current	Recorded investment in loans receivable
Personal Banking:
Residential mortgage loans	$	27,443	6,970	17,696	52,109	2,469,347	2,521,456
Home equity loans	5,752		1,672	6,606	14,030	1,052,101	1,066,131
Other consumer loans	5,572		2,435	2,450	10,457	232,287	242,744
Total Personal Banking	38,767		11,077	26,752	76,596	3,753,735	3,830,331
Business Banking:
Commercial real estate loans	4,956		2,038	11,099	18,093	1,783,091	1,801,184
Commercial loans	2,262		209	3,475	5,946	352,430	358,376
Total Business Banking	7,218		2,247	14,574	24,039	2,135,521	2,159,560
Total	$	45,985	13,324	41,326	100,635	5,889,256	5,989,891

Schedule of credit quality indicators

The following table sets forth information about credit quality indicators, which were updated during the quarter ended June 30, 2015 (in thousands):

	Pass		Special mention	Substandard	Doubtful	Loss	Recorded investment in loans receivable
Personal Banking:
Residential mortgage loans	$	2,584,438	—	11,362	—	1,370	2,597,170
Home equity loans	1,051,213		—	4,616	—	—	1,055,829
Other consumer loans	250,648		—	1,743	—	—	252,391
Total Personal Banking	3,886,299		—	17,721	—	1,370	3,905,390
Business Banking:
Commercial real estate loans	1,688,449		37,497	133,797	—	—	1,859,743
Commercial loans	301,467		19,793	38,262	2	—	359,524
Total Business Banking	1,989,916		57,290	172,059	2	—	2,219,267
Total	$	5,876,215	57,290	189,780	2	1,370	6,124,657

The following table sets forth information about credit quality indicators, which were updated during the year ended December 31, 2014 (in thousands):

	Pass		Special mention	Substandard	Doubtful	Loss	Recorded investment in loans receivable
Personal Banking:
Residential mortgage loans	$	2,507,269	—	12,763	—	1,424	2,521,456
Home equity loans	1,059,525		—	6,606	—	—	1,066,131
Other consumer loans	240,947		—	1,797	—	—	242,744
Total Personal Banking	3,807,741		—	21,166	—	1,424	3,830,331
Business Banking:
Commercial real estate loans	1,618,269		36,908	145,502	505	—	1,801,184
Commercial loans	286,234		23,690	46,280	2,172	—	358,376
Total Business Banking	1,904,503		60,598	191,782	2,677	—	2,159,560
Total	$	5,712,244	60,598	212,948	2,677	1,424	5,989,891

XML

Label	Element	Value
Interest-bearing Deposits in Banks and Other Financial Institutions	us-gaap_InterestBearingDepositsInBanks	$ 152,671
Interest-bearing Deposits in Banks and Other Financial Institutions	us-gaap_InterestBearingDepositsInBanks	208,311
Interest-bearing Deposits in Banks and Other Financial Institutions	us-gaap_InterestBearingDepositsInBanks	287,867
Cash and Due from Banks	us-gaap_CashAndDueFromBanks	84,000
Cash and Due from Banks	us-gaap_CashAndDueFromBanks	87,401
Cash and Due from Banks	us-gaap_CashAndDueFromBanks	97,467
Federal Funds Sold and Other Short-term Investments	nwbi_FederalFundsSoldAndOtherShortTermInvestments	634
Federal Funds Sold and Other Short-term Investments	nwbi_FederalFundsSoldAndOtherShortTermInvestments	634
Federal Funds Sold and Other Short-term Investments	nwbi_FederalFundsSoldAndOtherShortTermInvestments	$ 637

XML

Investment securities and impairment of investment securities (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Amortized cost
Total	$ 61,464	$ 103,695
Gross unrealized holding gains
Total	1,493	2,597
Fair value
Total	62,957	106,292
Municipal securities
Amortized cost
Due in five years - ten years	4,641	10,207
Due after ten years	25,831	56,545
Gross unrealized holding gains
Due in five years - ten years	36	141
Due after ten years	544	1,314
Fair value
Due in five years - ten years	4,677	10,348
Due after ten years	26,375	57,859
Residential mortgage-backed securities
Amortized cost
Total	30,992	36,943
Gross unrealized holding gains
Total	913	1,142
Fair value
Total	31,905	38,085
Fixed rate | Pass-through
Amortized cost
Total	7,292	8,236
Gross unrealized holding gains
Total	408	477
Fair value
Total	7,700	8,713
Fixed rate | Agency CMOs
Amortized cost
Total	18,762	23,382
Gross unrealized holding gains
Total	392	531
Fair value
Total	19,154	23,913
Variable rate | Pass-through
Amortized cost
Total	3,927	4,273
Gross unrealized holding gains
Total	96	122
Fair value
Total	4,023	4,395
Variable rate | Agency CMOs
Amortized cost
Total	1,011	1,052
Gross unrealized holding gains
Total	17	12
Fair value
Total	$ 1,028	$ 1,064

XML

Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust-Preferred Securities) and Interest Rate Swaps

6 Months Ended

Jun. 30, 2015

Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust-Preferred Securities) and Interest Rate Swaps

Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures (Trust-Preferred Securities) and Interest Rate Swaps

(10)Guaranteed Preferred Beneficial Interests in the Company’s Junior Subordinated Deferrable Interest Debentures (Trust Preferred Securities) and Interest Rate Swaps

We have two statutory business trusts: Northwest Bancorp Capital Trust III, a Delaware statutory business trust and Northwest Bancorp Statutory Trust IV, a Connecticut statutory business trust (“Trusts”).  These trusts exist solely to issue preferred securities to third parties for cash, issue common securities to the Company in exchange for capitalization of the Trusts, invest the proceeds from the sale of the trust securities in an equivalent amount of debentures of the Company, and engage in other activities that are incidental to those previously listed.

Northwest Bancorp Capital Trust III (Trust III) issued 50,000 cumulative trust preferred securities in a private transaction to a pooled investment vehicle on December 5, 2006 (liquidation value of $1,000 per preferred security or $50,000,000) with a stated maturity of December 30, 2035.  These securities carry a floating interest rate, which is reset quarterly, equal to three-month LIBOR plus 1.38%.  Northwest Bancorp Statutory Trust IV (Trust IV) issued 50,000 cumulative trust preferred securities in a private transaction to a pooled investment vehicle on December 15, 2006 (liquidation value of $1,000 per preferred security or $50,000,000) with a stated maturity of December 15, 2035.  These securities carry a floating interest rate, which is reset quarterly, equal to three-month LIBOR plus 1.38%.  The Trusts have invested the proceeds of the offerings in junior subordinated deferrable interest debentures issued by the Company.  The structure of these debentures mirrors the structure of the trust-preferred securities.  Trust III holds $51,547,000 of the Company’s junior subordinated debentures and Trust IV holds $51,547,000 of the Company’s junior subordinated debentures.  These subordinated debentures are the sole assets of the Trusts.  Cash distri-butions on the trust securities are made on a quarterly basis to the extent interest on the debentures is received by the Trusts.  We have the right to defer payment of interest on the subordinated debentures at any time, or from time-to-time, for periods not exceeding five years.  If interest payments on the subordinated debentures are deferred, the distributions on the trust preferred securities are also deferred.  Interest on the subordinated debentures and distributions on the trust securities is cumulative.  To date, there have been no interest deferrals.  Our obligation constitutes a full, irrevocable, and unconditional guarantee on a subordinated basis of the obligations of the trust under the preferred securities.

We are currently a counterparty to three interest rate swap agreements (swaps), designating the swaps as cash flow hedges.  The swaps are intended to protect against the variability of cash flows associatedwith Trust III and Trust IV.  The first swap modifies the re-pricing characteristics of Trust III, wherein for a ten year period expiring in September 2018, the Company receives interest of three-month LIBOR from a counterparty and pays a fixed rate of 4.61% to the same counterparty calculated on a notional amount of $25.0 million.  The other two swaps modify the re-pricing characteristics of Trust IV, wherein (i) for a seven year period expiring in December 2015, the Company receives interest of three-month LIBOR from a counterparty and pays a fixed rate of 3.85% to the same counterparty calculated on a notional amount of $25.0 million and (ii) for a ten year period expiring in December 2018, the Company receives interest of three-month LIBOR from a counterparty and pays a fixed rate of 4.09% to the same counterparty calculated on a notional amount of $25.0 million.  The swap agreements were entered into with a counterparty that met our credit standards and the agreements contain collateral provisions protecting the at-risk party.  We believe that the credit risk inherent in the contracts is not significant.  At June 30, 2015, $6.1 million of cash was pledged as collateral to the counterparty.

At June 30, 2015, the fair value of the swap agreements was $(5.5) million and was the amount we would have expected to pay if the contracts were terminated.  There was no material hedge ineffectiveness for these swaps.

The following table shows liability derivatives, included in other liabilities, at June 30, 2015 and December 31, 2014 (in thousands):

	June 30,		December 31,
	2015		2014
Fair value	$	5,454	6,273
Notional amount	75,000		75,000
Collateral posted	6,105		6,805