8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):    October 24, 2011

Northwest Bancshares, Inc.

(Exact name of registrant as specified in its charter)

Maryland	1-34582	27-0950358
(State or other jurisdiction	(Commission File No.)	(I.R.S. Employer
of incorporation)		Identification No.)

100 Liberty Street
Warren, Pennsylvania	16365
(Address of principal executive office)	(Zip code)

Registrant’s telephone number, including area code:        (814) 726-2140

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Item 2.02 Results of Operations and Financial Condition

On October 24, 2011, Northwest Bancshares, Inc. issued an earnings release for the quarter ended September 30, 2011.  A copy of the release is included as exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed “filed” for any purpose.

Item 9.01 Financial Statements and Exhibits

(a)  Not applicable

(b)  Not applicable

(c)  Not applicable

(d) Exhibits

Exhibit No.	Description
99.1	Press release dated October 24, 2011

SIGNATURES

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

			NORTHWEST BANCSHARES, INC.
DATE:	October 24, 2011	By:		/s/ William W. Harvey, Jr.
				William W. Harvey, Jr.
				Chief Financial Officer

EX-99.1

EXHIBIT 99.1

PRESS RELEASE OF NORTHWEST BANCSHARES, INC.

EARNINGS RELEASE

FOR IMMEDIATE RELEASE

Contact:	William J. Wagner, President and Chief Executive Officer (814) 726-2140
	William W. Harvey, Jr., Executive Vice President and Chief Financial Officer (814) 726-2140

Northwest Bancshares, Inc. Announces Third Quarter

2011 Earnings and Dividend Declaration

Warren, Pennsylvania – October 24, 2011

Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2011 of $16.7 million, or $0.17 per diluted share.  This represents an increase of $1.2 million, or $0.03 per diluted share over the same quarter last year when net income was $15.5 million, or $0.14 per diluted share, and an increase of $1.7 million, or $0.02 per diluted share compared to the quarter ended June 30, 2011 when net income was $15.0 million, or $0.15 per diluted share.  The annualized returns on average shareholders’ equity and average assets for the current quarter were 5.62% and 0.83% compared to 4.72% and 0.76% for the same quarter last year and 4.81% and 0.74% for the quarter ended June 30, 2011.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.11 per share payable on November 17, 2011, to shareholders of record as of November 3, 2011.  This represents the 68th consecutive quarter in which the Company has paid a cash dividend.

In making this announcement, William J. Wagner, President and CEO, noted, “We are pleased to report another solid quarter with fairly significant growth in earnings, earnings per share, loans, and core deposits. Despite the challenges of historically low interest rates and a flat yield curve, our net interest margin remains strong at 3.70% versus 3.63% last year. Finally, we continued our stock repurchase program during the quarter with 5,835,164 shares being purchased at an average price of $11.67. To date, we have repurchased 14,822,153 shares at an average price of $11.95. This has been accomplished with little dilution to tangible book value per share as the value was $10.28 at the start of the program on December 20, 2010 and had decreased to $10.17 as of September 30, 2011. During that time we paid cash dividends of $0.32 per share.”

Net interest income increased by $362,000, or 0.5%, to $67.0 million for the quarter ended September 30, 2011, from $66.7 million for the quarter ended September 30, 2010. This increase was primarily attributable to a decrease in the cost of deposits which was nearly offset by a decrease in the yield earned on loans receivable.  Interest expense on deposits decreased by $2.8 million, or 15.8%, to $15.0 million as a result of a decrease in market interest rates and the continued change in the mix of deposits. Lower-cost transaction and savings accounts grew by $106.2 million, or 3.9%, while higher-cost time deposit accounts decreased by $126.4 million, or 5.1% during the current year.  Interest income on loans receivable decreased by $2.8 million, or 3.4%, to $80.6 million as a result of the re-pricing of adjustable rate loans and increased competition for quality lending opportunities.

The provision for loan losses decreased by $1.8 million, or 18.4%, to $8.1 million for the quarter ended September 30, 2011, from $9.9 million a year ago.  As of September 30, 2011, the allowance for loan losses was $73.2 million, or 1.33% of total loans, compared to $77.2 million, or 1.38% of total loans, as of September 30, 2010. Net loan charge-offs were $10.3 million for the current quarter compared to $8.0 million in the previous year and $9.4 million in the previous quarter. Loans 90 days or more delinquent were $112.2 million as of September 30, 2011, compared to $103.5 million as of September 30, 2010 and $115.8 million as of June 30, 2011.

Noninterest income increased by $682,000, or 4.9%, to $14.5 million for the quarter ended September 30, 2011, from $13.8 million for the quarter ended September 30, 2010. Income from bank owned life insurance increased by $726,000, or 59.9%, to $1.9 million for the quarter ended September 30, 2011, from $1.2 million for the same quarter last year. This increase is the result of the death benefits received on two policies. Losses on real estate owned decreased by $674,000, or 33.5%, to $1.3 million for the quarter ended September 30, 2011, from $2.0 million for the quarter ended September 30, 2010. The loss in the current quarter is the result of further write-downs on properties in Florida and Central Pennsylvania. Trust and other financial services income and insurance commission income increased by $463,000, or 28.9%, and $403,000, or 28.9%, respectively, for the quarter ended September 30, 2011. Partially offsetting these increases was a decrease in service charges and fees of $1.3 million, or 13.5%, to $8.5 million for the quarter ended September 30, 2011. This decrease was primarily the result of lower deposit overdraft revenue.

Noninterest expense increased by $875,000, or 1.8%, to $49.9 million for the quarter ended September 30, 2011, from $49.0 million for the quarter ended September 30, 2010.  This increase is primarily a result of increases in compensation and employee benefits of $1.4 million, or 5.9%, to $26.0 million for the quarter ended September 30, 2011.  This increase is attributable to an increase in health insurance and other employee benefits expense and an increase of 47 full-time equivalent employees when compared to September 30, 2010.  The increase in personnel occurred primarily in the areas of commercial lending, loan servicing and regulatory compliance. Partially offsetting these increases were decreases in office operations expense and federal deposit insurance premiums. Office operations expense decreased by $1.3 million, to $3.2 million for the quarter ended September 30, 2011 which was attributable to a check kiting fraud suffered during the quarter ended September 30, 2010.  Federal deposit insurance premiums decreased $1.0 million, or 42.8%, to $1.4 million for the quarter ended September 30, 2011 from the previous year due to a change in the assessment formula, which now calculates premiums based on assets rather than deposits.

Net income for the nine-month period ended September 30, 2011 of $49.0 million, or $0.48 per diluted share, represents an increase in income of $4.2 million, or 9.4% and $0.07 per diluted share when compared to the previous year.  The annualized returns on average shareholders’ equity and average assets were 5.25% and 0.81%, respectively, for the current nine-month period compared to 4.57% and 0.74%, respectively, in the prior year.

Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Savings Bank.  Founded in 1896, Northwest Savings Bank is a full-service financial institution offering a complete line of business and personal banking products as well as benefits and wealth management services. Northwest operates 169 community banking offices in Pennsylvania, New York, Ohio and Maryland and 52 consumer finance offices in Pennsylvania through its subsidiary, Northwest Consumer Discount Company.  Northwest Bancshares, Inc.’s common stock is listed on the NASDAQ Global Select Market.  Additional information regarding Northwest Bancshares, Inc. can be accessed on-line at www.northwestsavingsbank.com.

#                      #                      #

Forward-Looking Statements - This press release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans that could result from an economic downturn; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses; and (7) increased risk associated with an increase in commercial real-estate and business loans and non-performing loans.  Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(Dollars in thousands, except per share amounts)

	(Unaudited)
	September 30,			December 31,
	2011			2010
Assets
Cash and cash equivalents	$	90,493			40,708
Interest-earning deposits in other financial institutions		579,915			677,771
Federal funds sold and other short-term investments		633			632
Marketable securities available-for-sale (amortized cost of $949,789 and $945,571)		971,543			950,463
Marketable securities held-to-maturity (fair value of $274,803 and $354,126)		268,517			357,922
Total cash, interest-earning deposits and marketable securities		1,911,101			2,027,496
Loans held for sale		926			11,376
Residential mortgage loans		2,349,196			2,386,928
Home equity loans		1,094,609			1,092,606
Other consumer loans		246,188			259,123
Commercial real estate loans		1,420,504			1,350,319
Commercial loans		406,885			433,653
Total loans receivable		5,518,308			5,534,005
Allowance for loan losses		(73,208	)		(76,412	)
Loans receivable, net		5,445,100			5,457,593
Federal Home Loan Bank stock, at cost		51,511			60,080
Accrued interest receivable		25,745			26,216
Real estate owned, net		20,648			20,780
Premises and Equipment, net		126,047			128,101
Bank owned life insurance		133,081			132,237
Goodwill		171,882			171,882
Other intangible assets		2,497			3,942
Other assets		101,731			119,828
Total assets	$	7,989,343			8,148,155
Liabilities and Shareholders' equity
Liabilities
Noninterest-bearing demand deposits	$	643,920			575,281
Interest-bearing demand deposits		819,796			782,257
Savings deposits		2,017,563			1,948,882
Time deposits		2,331,471			2,457,916
Total deposits		5,812,750			5,764,336
Borrowed funds		828,674			891,293
Advances by borrowers for taxes and insurance		12,080			22,868
Accrued interest payable		1,072			1,716
Other liabilities		64,896			57,398
Junior subordinated debentures		103,094			103,094
Total liabilities		6,822,566			6,840,705
Shareholders' equity
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued		-			-
Common stock, $0.01 par value: 500,000,000 shares authorized, 97,576,368 shares and 110,295,117 shares issued, respectively		976			1,103
Paid-in-capital		659,432			824,164
Retained earnings		538,882			523,089
Unallocated common stock of Employee Stock Ownership Plan		(26,258	)		(27,409	)
Accumulated other comprehensive loss		(6,255	)		(13,497	)
Total shareholders' equity		1,166,777			1,307,450
Total liabilities and shareholders' equity	$	7,989,343			8,148,155
Equity to assets		14.60	%		16.05	%
Tangible common equity to assets		12.70	%		14.19	%
Book value per share	$	11.96		$	11.85
Tangible book value per share	$	10.17		$	10.26
Closing market price per share	$	11.91		$	11.78
Full time equivalent employees		1,926			1,881
Number of banking offices		169			171

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income - Unaudited

(Dollars in thousands, except per share amounts)

	Three months ended
	September 30,						June 30,
	2011			2010			2011
Interest income:
Loans receivable	$	80,562			83,372			79,993
Mortgage-backed securities		5,544			6,534			6,073
Taxable investment securities		684			489			594
Tax-free investment securities		2,848			3,090			2,992
Interest-earning deposits		393			524			489
Total interest income		90,031			94,009			90,141
Interest expense:
Deposits		14,958			17,772			15,473
Borrowed funds		8,061			9,587			7,989
Total interest expense		23,019			27,359			23,462
Net interest income		67,012			66,650			66,679
Provision for loan losses		8,057			9,871			8,367
Net interest income after provision for loan losses		58,955			56,779			58,312
Noninterest income:
Impairment losses on securities		-			(1,830	)		(577	)
Noncredit related losses on securities not expected to be sold (recognized in other comprehensive income)		-			1,438			70
Net impairment losses		-			(392	)		(507	)
Gain on sale of investments, net		152			17			45
Service charges and fees		8,499			9,821			9,321
Trust and other financial services income		2,063			1,600			2,185
Insurance commission income		1,796			1,393			1,790
Loss on real estate owned, net		(1,340	)		(2,014	)		(593	)
Income from bank owned life insurance		1,938			1,212			1,716
Mortgage banking income		400			752			290
Other operating income		1,002			1,439			1,015
Total noninterest income		14,510			13,828			15,262
Noninterest expense:
Compensation and employee benefits		26,004			24,565			29,658
Premises and occupancy costs		5,658			5,648			5,650
Office operations		3,209			4,460			3,255
Processing expenses		5,896			5,863			5,687
Marketing expenses		2,788			2,208			2,108
Federal deposit insurance premiums		1,386			2,424			2,355
Professional services		1,238			1,126			1,289
Amortization of intangible assets		475			725			479
Real estate owned expense		483			654			249
Other expense		2,786			1,375			1,760
Total noninterest expense		49,923			49,048			52,490
Income before income taxes		23,542			21,559			21,084
Income tax expense		6,822			6,068			6,081
Net income	$	16,720			15,491			15,003
Basic earnings per share	$	0.17		$	0.14		$	0.15
Diluted earnings per share	$	0.17		$	0.14		$	0.15
Annualized return on average equity		5.62	%		4.72	%		4.81	%
Annualized return on average assets		0.83	%		0.76	%		0.74	%
Basic common shares outstanding		96,918,016			108,340,566			102,216,892
Diluted common shares outstanding		97,124,328			108,914,069			102,536,202

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income - Unaudited

(Dollars in thousands, except per share amounts)

	Nine months ended
	September 30,
	2011			2010
Interest income:
Loans receivable	$	241,012			245,852
Mortgage-backed securities		18,373			19,385
Taxable investment securities		1,676			2,086
Tax-free investment securities		8,914			8,627
Interest-earning deposits		1,289			1,601
Total interest income		271,264			277,551
Interest expense:
Deposits		46,494			58,149
Borrowed funds		24,039			28,991
Total interest expense		70,533			87,140
Net interest income		200,731			190,411
Provision for loan losses		23,668			26,568
Net interest income after provision for loan losses		177,063			163,843
Noninterest income:
Impairment losses on securities		(577	)		(1,994	)
Noncredit related losses on securities not expected to be sold (recognized in other comprehensive income)		70			1,287
Net impairment losses		(507	)		(707	)
Gain on sale of investments, net		201			2,194
Service charges and fees		26,748			28,625
Trust and other financial services income		6,158			5,345
Insurance commission income		4,966			3,828
Loss on real estate owned, net		(1,960	)		(2,293	)
Income from bank owned life insurance		4,820			3,852
Mortgage banking income		887			773
Other operating income		2,785			3,613
Total noninterest income		44,098			45,230
Noninterest expense:
Compensation and employee benefits		81,161			75,381
Premises and occupancy costs		17,499			16,990
Office operations		9,564			10,631
Processing expenses		17,350			17,111
Marketing expenses		6,855			6,945
Federal deposit insurance premiums		6,168			6,720
Professional services		3,783			2,437
Amortization of intangible assets		1,445			2,266
Real estate owned expense		1,163			2,265
Other expense		6,803			5,063
Total noninterest expense		151,791			145,809
Income before income taxes		69,370			63,264
Income tax expense		20,394			18,479
Net income	$	48,976			44,785
Basic earnings per share	$	0.48		$	0.41
Diluted earnings per share	$	0.48		$	0.41
Annualized return on average equity		5.25	%		4.57	%
Annualized return on average assets		0.81	%		0.74	%
Basic common shares outstanding		101,866,461			108,299,515
Diluted common shares outstanding		102,268,927			108,959,585

Northwest Bancshares, Inc. and Subsidiaries

Asset quality

(Dollars in thousands)

	Three months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
Allowance for loan losses
Beginning balance	$	75,455		$	75,417			76,412			70,403
Provision		8,057			9,871			23,668			26,568
Charge-offs residential mortgage		(634	)		(672	)		(2,668	)		(1,947	)
Charge-offs home equity		(588	)		(1,237	)		(3,736	)		(2,958	)
Charge-offs other consumer		(1,307	)		(1,813	)		(3,816	)		(4,747	)
Charge-offs commercial real estate		(3,675	)		(3,488	)		(8,220	)		(6,623	)
Charge-offs commercial		(4,791	)		(1,323	)		(10,706	)		(4,940	)
Recoveries		691			490			2,274			1,489
Ending balance	$	73,208		$	77,245			73,208			77,245
Net charge-offs to average loans, annualized		0.75	%		0.58	%		0.65	%		0.48	%

	September 30,			June 30,			September 30,			December 31,
	2011			2011			2010			2010
Nonperforming loans	$	161,375		$	161,115		$	151,217			148,391
Real estate owned, net		20,648			21,389			22,998			20,780
Nonperforming assets	$	182,023		$	182,504		$	174,215			169,171
Nonperforming loans to total loans		2.92	%		2.94	%		2.70	%		2.68	%
Nonperforming assets to total assets		2.28	%		2.26	%		2.14	%		2.08	%
Allowance for loan losses to total loans		1.33	%		1.37	%		1.38	%		1.38	%
Allowance for loan losses to nonperforming loans		45.37	%		46.83	%		51.08	%		51.49	%

Northwest Bancshares, Inc. and Subsidiaries

Non-accrual loans delinquency

(Dollars in thousands)

	September 30, 2011		June 30, 2011		September 30, 2010		December 31, 2010
Non-accrual loans current:
Residential mortgage loans	$	-		-		-		-
Home equity loans		-		-		-		-
Other consumer loans		-		-		-		-
Commercial real estate loans		17,296		13,572		14,313		7,378
Commercial loans		20,534		26,542		22,335		23,317
Total non-accrual loans current	$	37,830		40,114		36,648		30,695
Non-accrual loans delinquent 30 days to 59 days:
Residential mortgage loans	$	-		-		-		-
Home equity loans		-		-		-		-
Other consumer loans		-		-		-		-
Commercial real estate loans		5,557		2,809		1,470		4,039
Commercial loans		1,238		312		1,052		1,465
Total non-accrual loans delinquent 30 days to 59 days	$	6,795		3,121		2,522		5,504
Non-accrual loans delinquent 60 days to 89 days:
Residential mortgage loans	$	-		-		-		-
Home equity loans		-		-		-		-
Other consumer loans		-		-		-		-
Commercial real estate loans		2,052		1,385		8,120		10,923
Commercial loans		2,471		693		403		848
Total non-accrual loans delinquent 60 days to 89 days	$	4,523		2,078		8,523		11,771
Non-accrual loans delinquent 90 days or more:
Residential mortgage loans	$	31,705		30,594		27,370		29,751
Home equity loans		9,340		9,069		9,231		10,263
Other consumer loans		2,117		1,825		2,887		2,565
Commercial real estate loans		50,395		55,512		41,605		44,965
Commercial loans		18,670		18,802		22,431		12,877
Total non- accrual loans delinquent 90 days or more	$	112,227		115,802		103,524		100,421
Total non-accrual loans	$	161,375		161,115		151,217		148,391

Northwest Bancshares, Inc. and Subsidiaries

Delinquency

(Dollars in thousands)

Loans delinquency schedule

(Number of loans and dollar amount of loans)

	September 30,							June 30,							September 30,							December 31,
	2011				*			2011				*			2010				*			2010				*
Loans delinquent 30 days to 59 days:
Residential mortgage loans		73	$	3,724		0.2	%		84	$	4,627		0.2	%		86	$	6,605		0.3	%		427	$	35,329		1.5	%
Home equity loans		178		7,125		0.7	%		174		5,763		0.5	%		173		6,205		0.6	%		230		7,317		0.7	%
Other consumer loans		857		4,189		1.7	%		825		3,816		1.5	%		831		3,760		1.4	%		1,008		5,318		2.1	%
Commercial real estate loans		57		10,489		0.7	%		58		7,902		0.6	%		76		12,445		0.9	%		82		16,287		1.2	%
Commercial loans		40		2,690		0.7	%		40		2,264		0.5	%		55		5,130		1.3	%		48		6,590		1.5	%
Total loans delinquent 30 days to 59 days		1,205	$	28,217		0.5	%		1,181	$	24,372		0.4	%		1,221	$	34,145		0.6	%		1,795	$	70,841		1.3	%
Loans delinquent 60 days to 89 days:
Residential mortgage loans		85	$	7,430		0.3	%		84	$	8,044		0.3	%		74	$	6,476		0.3	%		106	$	9,848		0.4	%
Home equity loans		45		1,547		0.1	%		60		2,602		0.2	%		44		2,148		0.2	%		81		3,249		0.3	%
Other consumer loans		331		1,337		0.5	%		349		1,195		0.5	%		371		1,560		0.6	%		356		1,331		0.5	%
Commercial real estate loans		19		2,471		0.2	%		23		3,348		0.2	%		36		12,358		0.9	%		39		14,365		1.1	%
Commercial loans		29		4,466		1.1	%		22		3,887		0.9	%		36		2,304		0.6	%		9		1,678		0.4	%
Total loans delinquent 60 days to 89 days		509	$	17,251		0.3	%		538	$	19,076		0.3	%		561	$	24,846		0.4	%		591	$	30,471		0.6	%
Loans delinquent 90 days or more:
Residential mortgage loans		274	$	31,705		1.3	%		268	$	30,594		1.3	%		243	$	27,370		1.1	%		275	$	29,751		1.2	%
Home equity loans		171		9,340		0.9	%		173		9,069		0.8	%		177		9,231		0.8	%		190		10,263		0.9	%
Other consumer loans		407		2,117		0.9	%		314		1,825		0.7	%		431		2,887		1.1	%		374		2,565		1.0	%
Commercial real estate loans		142		50,395		3.5	%		151		55,512		4.0	%		186		41,605		3.1	%		181		44,965		3.3	%
Commercial loans		46		18,670		4.6	%		55		18,802		4.3	%		104		22,431		5.6	%		111		12,877		3.0	%
Total loans delinquent 90 days or more		1,040	$	112,227		2.0	%		961	$	115,802		2.1	%		1,141	$	103,524		1.9	%		1,131	$	100,421		1.8	%
Total loans delinquent		2,754	$	157,695		2.8	%		2,680	$	159,250		2.8	%		2,923	$	162,515		2.9	%		3,517	$	201,733		3.7	%

* - Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.

Northwest Bancshares, Inc. and Subsidiaries

Analysis of loan portfolio by geographic location as of September 30, 2011

(Dollars in thousands)

Loans outstanding:

	Mortgage		(1)			Home equity		(2)			Other consumer		(3)			Commercial real estate loans		(4)			Commercial loans		(5)			Total		(6)
Pennsylvania	$	1,923,966		81.9	%		935,015		85.4	%		224,753		91.2	%		854,125		60.1	%		258,406		63.6	%		4,196,265		76.1	%
New York		157,589		6.7	%		103,656		9.5	%		11,002		4.5	%		331,802		23.4	%		59,079		14.5	%		663,128		12.0	%
Ohio		20,256		0.9	%		11,799		1.1	%		2,768		1.1	%		34,203		2.4	%		9,050		2.2	%		78,076		1.4	%
Maryland		174,977		7.4	%		34,013		3.1	%		1,409		0.6	%		117,844		8.3	%		23,177		5.7	%		351,420		6.4	%
Florida		29,037		1.2	%		8,277		0.7	%		1,673		0.7	%		45,193		3.2	%		17,585		4.3	%		101,765		1.8	%
All Other		44,297		1.9	%		1,849		0.2	%		4,583		1.9	%		37,337		2.6	%		39,588		9.7	%		127,654		2.3	%
Total	$	2,350,122		100.0	%		1,094,609		100.0	%		246,188		100.0	%		1,420,504		100.0	%		406,885		100.0	%		5,518,308		100.0	%

(1) - Percentage of total mortgage loans

(2) - Percentage of total home equity loans

(3) - Percentage of total consumer loans

(4) - Percentage of total commercial real estate loans

(5) - Percentage of total commercial loans

(6) - Percentage of total loans

Loans 90 days or more past due:

	Mortgage		(7)			Home equity		(8)			Other consumer		(9)			Commercial real estate loans		(10)			Commercial loans		(11)			Total		(12)
Pennsylvania	$	19,475		1.0	%		6,384		0.7	%		2,025		0.9	%		22,032		2.6	%		6,035		2.3	%		55,951		1.3	%
New York		1,026		0.7	%		744		0.7	%		70		0.6	%		7,472		2.3	%		8,949		15.1	%		18,261		2.8	%
Ohio		237		1.2	%		69		0.6	%		3		0.1	%		-		0.0	%		-		0.0	%		309		0.4	%
Maryland		4,615		2.6	%		1,673		4.9	%		-		0.0	%		7,718		6.5	%		596		2.6	%		14,602		4.2	%
Florida		5,422		18.7	%		433		5.2	%		19		1.1	%		5,964		13.2	%		2,865		16.3	%		14,703		14.4	%
All Other		930		2.1	%		37		2.0	%		-		0.0	%		7,209		19.3	%		225		0.6	%		8,401		6.6	%
Total	$	31,705		1.3	%		9,340		0.9	%		2,117		0.9	%		50,395		3.5	%		18,670		4.6	%		112,227		2.0	%

(7) - Percentage of total mortgage loans in that geographic area

(8) - Percentage of total home equity loans in that geographic area

(9) - Percentage of total consumer loans in that geographic area

(10) - Percentage of total commercial real estate loans in that geographic area

(11) - Percentage of total commercial loans in that geographic area

(12) - Percentage of total loans in that geographic area

Northwest Bancshares, Inc. and Subsidiaries

Investment portfolio

(Dollars in thousands)

Marketable securities available-for-sale as of September 30, 2011:

			Gross		Gross
			unrealized		unrealized
	Amortized		holding		holding			Market
	cost		gains		losses			value
Debt issued by the U.S. government and agencies:
Due in one year or less	$	61		-		(1	)		60
Debt issued by government sponsored enterprises:
Due in one year or less		1,997		19		-			2,016
Due in one year - five years		54,298		271		-			54,569
Due in five years - ten years		29,898		654		(44	)		30,508
Due after ten years		9,953		-		(34	)		9,919
Equity securities		9,200		667		(325	)		9,542
Municipal securities:
Due in one year or less		460		1		-			461
Due in one year - five years		8,049		281		-			8,330
Due in five years - ten years		30,712		1,303		-			32,015
Due after ten years		143,519		4,015		(321	)		147,213
Corporate trust preferred securities:
Due in one year or less		500		-		-			500
Due after ten years		25,362		349		(4,845	)		20,866
Mortgage-backed securities:
Fixed rate pass-through		108,335		8,514		-			116,849
Variable rate pass-through		141,591		6,995		(4	)		148,582
Fixed rate non-agency CMO		10,544		191		(907	)		9,828
Fixed rate agency CMO		125,821		3,292		-			129,113
Variable rate non-agency CMO		1,389		-		(109	)		1,280
Variable rate agency CMO		248,100		1,964		(172	)		249,892
Total mortgage-backed securities		635,780		20,956		(1,192	)		655,544
Total marketable securities available-for-sale	$	949,789		28,516		(6,762	)		971,543
Marketable securities held-to-maturity as of September 30, 2011:
			Gross		Gross
			unrealized		unrealized
	Amortized		holding		holding			Market
	cost		gains		losses			value
Municipal securities:
Due in five years - ten years	$	2,084		66		-			2,150
Due after ten years		74,604		1,855		-			76,459
Mortgage-backed securities:
Fixed rate pass-through		26,421		1,153		-			27,574
Variable rate pass-through		9,356		66		-			9,422
Fixed rate agency CMO		139,390		2,860		-			142,250
Variable rate agency CMO		16,662		286		-			16,948
Total mortgage-backed securities		191,829		4,365		-			196,194
Total marketable securities held-to-maturity	$	268,517		6,286		-			274,803
Issuers of mortgage-backed securities as of September 30, 2011:
Fannie Mae	$	318,491		11,918		(84	)		330,325
Ginnie Mae		172,840		3,916		(8	)		176,748
Freddie Mac		304,033		9,296		(70	)		313,259
SBA		19,581		-		(14	)		19,567
Non-agency		12,664		191		(1,016	)		11,839
Total	$	827,609		25,321		(1,192	)		851,738

Northwest Bancshares, Inc. and Subsidiaries

Municipal Securities Portfolio

(Dollars in thousands)

	Book		As a %
	Value		of Book
	9/30/2011		Value
Municipal securities by state:
Pennsylvania
School districts	$	121,521		46.8	%
General obligations		48,242		18.6	%
Revenue bonds		12,959		5.0	%
Total Pennsylvania		182,722		70.4	%
New York		33,672		13.0	%
Ohio		6,427		2.5	%
All other states		36,607		14.1	%
	$	259,428

Average Balance Sheet - unaudited

(Dollars in thousands)

The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of 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.

	Three months ended September 30,
	2011								2010
						Avg.								Avg.
	Average					Yield/			Average					Yield/
	Balance			Interest		Cost			Balance			Interest		Cost
Assets:
Interest-earning assets:
Loans receivable (a) (b) (d)	$	5,490,795			81,025		5.86	%		5,569,014			83,753		6.00	%
Mortgage-backed securities (c)		857,898			5,544		2.58	%		853,714			6,534		3.06	%
Investment securities (c) (d)		412,927			5,066		4.91	%		378,145			5,243		5.55	%
FHLB stock		52,336			-		-			63,242			-		-
Other interest-earning deposits		652,958			393		0.24	%		706,829			524		0.29	%
Total interest-earning assets		7,466,914			92,028		4.90	%		7,570,944			96,054		5.06	%
Noninterest earning assets (e)		560,951								591,977
Total assets	$	8,027,865								8,162,921
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings accounts	$	1,081,721			1,157		0.42	%	$	1,071,708			2,203		0.82	%
Interest-bearing demand accounts		798,424			244		0.12	%		778,597			244		0.12	%
Money market accounts		950,113			1,016		0.42	%		903,278			1,301		0.57	%
Certificate accounts		2,338,436			12,541		2.13	%		2,446,317			14,024		2.27	%
Borrowed funds (f)		840,560			6,625		3.13	%		898,618			8,150		3.60	%
Junior subordinated debentures		103,094			1,436		5.45	%		103,094			1,437		5.45	%
Total interest-bearing liabilities		6,112,348			23,019		1.49	%		6,201,612			27,359		1.75	%
Noninterest bearing liabilities		726,173								648,905
Total liabilities		6,838,521								6,850,517
Shareholders' equity		1,189,344								1,312,404
Total liabilities and shareholders' equity	$	8,027,865								8,162,921
Net interest income/ Interest rate spread					69,009		3.41	%					68,695		3.31	%
Net interest-earning assets/ Net interest margin	$	1,354,566					3.70	%		1,369,332					3.63	%
Ratio of interest-earning assets to interest-bearing liabilities		1.22	X							1.22	X

(a) Average gross loans receivable 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 was not material.

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

(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.

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

(f) Average balances include FHLB borrowings, securities sold under agreements to repurchase and other borrowings.

Average Balance Sheet - unaudited

(Dollars in thousands)

The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of 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.

	Nine months ended September 30,
	2011								2010
						Avg.								Avg.
	Average					Yield/			Average					Yield/
	Balance			Interest		Cost			Balance			Interest		Cost
Assets:
Interest-earning assets:
Loans receivable (a) (b) (d)	$	5,496,988			242,262		5.87	%		5,461,244			246,941		6.05	%
Mortgage-backed securities (c)		900,414			18,373		2.72	%		794,691			19,385		3.25	%
Investment securities (c) (d)		387,034			15,390		5.30	%		371,587			15,358		5.51	%
FHLB stock		55,403			-		-			63,242			-		-
Other interest-earning deposits		681,464			1,289		0.25	%		833,157			1,601		0.25	%
Total interest-earning assets		7,521,303			277,314		4.91	%		7,523,921			283,285		5.04	%
Noninterest earning assets (e)		570,231								577,252
Total assets	$	8,091,534							$	8,101,173
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings accounts	$	1,079,718			3,861		0.48	%		1,022,259			6,472		0.85	%
Interest-bearing demand accounts		795,183			722		0.12	%		772,584			962		0.17	%
Money market accounts		932,617			3,231		0.46	%		881,983			4,768		0.72	%
Certificate accounts		2,380,466			38,680		2.17	%		2,492,344			45,947		2.46	%
Borrowed funds (f)		843,366			19,778		3.14	%		898,320			24,728		3.68	%
Junior subordinated debentures		103,094			4,261		5.45	%		103,094			4,263		5.45	%
Total interest-bearing liabilities		6,134,444			70,533		1.54	%		6,170,584			87,140		1.89	%
Noninterest bearing liabilities		712,678								623,875
Total liabilities		6,847,122								6,794,459
Shareholders' equity		1,244,412								1,306,714
Total liabilities and shareholders' equity	$	8,091,534								8,101,173
Net interest income/ Interest rate spread					206,781		3.37	%					196,145		3.15	%
Net interest-earning assets/ Net interest margin	$	1,386,859					3.67	%		1,353,337					3.48	%
Ratio of interest-earning assets to interest-bearing liabilities		1.23	X							1.22	X

(a) Average gross loans receivable 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 was not material.

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

(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.

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

(f) Average balances include FHLB borrowings, securities sold under agreements to repurchase and other borrowings.

Average Balance Sheet - unaudited

(Dollars in thousands)

The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of 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.

	Three months ended								Three months ended
	September 30, 2011								June 30, 2011
						Avg.								Avg.
	Average					Yield/			Average					Yield/
	Balance			Interest		Cost			Balance			Interest		Cost
Assets:
Interest-earning assets:
Loans receivable (a) (b) (d)	$	5,490,795			81,025		5.86	%		5,484,194			80,389		5.86	%
Mortgage-backed securities (c)		857,898			5,544		2.58	%		917,748			6,073		2.65	%
Investment securities (c) (d)		412,927			5,066		4.91	%		392,963			5,196		5.29	%
FHLB stock		52,336			-		-			55,100			-		-
Other interest-earning deposits		652,958			393		0.24	%		705,568			489		0.27	%
Total interest-earning assets		7,466,914			92,028		4.90	%		7,555,573			92,147		4.87	%
Noninterest earning assets (e)		560,951								556,085
Total assets	$	8,027,865								8,111,658
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings accounts	$	1,081,721			1,157		0.42	%		1,093,539			1,275		0.47	%
Interest-bearing demand accounts		798,424			244		0.12	%		813,179			246		0.12	%
Money market accounts		950,113			1,016		0.42	%		933,288			1,059		0.46	%
Certificate accounts		2,338,436			12,541		2.13	%		2,372,039			12,893		2.18	%
Borrowed funds (f)		840,560			6,625		3.13	%		841,835			6,569		3.13	%
Junior subordinated debentures		103,094			1,436		5.45	%		103,094			1,420		5.45	%
Total interest-bearing liabilities		6,112,348			23,019		1.49	%		6,156,974			23,462		1.53	%
Noninterest bearing liabilities		726,173								708,310
Total liabilities		6,838,521								6,865,284
Shareholders' equity		1,189,344								1,246,374
Total liabilities and shareholders' equity	$	8,027,865								8,111,658
Net interest income/ Interest rate spread					69,009		3.41	%					68,685		3.34	%
Net interest-earning assets/ Net interest margin	$	1,354,566					3.70	%		1,398,599					3.64	%
Ratio of interest-earning assets to interest-bearing liabilities		1.22	X							1.23	X

(a) Average gross loans receivable 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 was not material.

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

(d) Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.

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

(f) Average balances include FHLB borrowings, securities sold under agreements to repurchase and other borrowings.