Business Segments

3 Months Ended

Mar. 31, 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
March 31, 2015 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	70,928	4,330	219		75,477
Intersegment interest income	575		—	(575	)	—
Interest expense	12,888		575	436		13,899
Provision for loan losses	250		650	—		900
Noninterest income	15,729		270	29		16,028
Noninterest expense	50,440		2,953	318		53,711
Income tax expense (benefit)	7,035		175	(385	)	6,825
Net income	16,619		247	(696	)	16,170
Total assets	$	7,769,901	102,913	17,545		7,890,359

	Community		Consumer
March 31, 2014 ($ in 000’s)	Banking		Finance	All other (1)		Consolidated
External interest income	$	70,068	4,659	323		75,050
Intersegment interest income	606		—	(606	)	—
Interest expense	13,169		606	429		14,204
Provision for loan losses	6,850		635	—		7,485
Noninterest income	17,033		288	2,336		19,657
Noninterest expense	49,862		2,921	380		53,163
Income tax expense (benefit)	4,513		326	405		5,244
Net income	13,313		459	839		14,611
Total assets	$	7,849,806	103,677	19,830		7,973,313

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