Business Segments |
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 (in thousands): | | | | | | | | | | | | | | | | | Community | | Consumer | | | | | September 30, 2016 | | Banking | | Finance | | All other (1) | | Consolidated | External interest income | | $ | 81,597 |
| | 4,264 |
| | 239 |
| | 86,100 |
| Intersegment interest income/ expense | | 645 |
| | — |
| | (645 | ) | | — |
| Interest expense | | 6,338 |
| | 645 |
| | 471 |
| | 7,454 |
| Provision for loan losses | | 4,276 |
| | 1,262 |
| | — |
| | 5,538 |
| Noninterest income | | 20,424 |
| | 372 |
| | 22 |
| | 20,818 |
| Noninterest expense | | 71,932 |
| | 2,908 |
| | 192 |
| | 75,032 |
| Income tax expense (benefit) | | 5,147 |
| | (74 | ) | | (376 | ) | | 4,697 |
| Net income | | $ | 14,973 |
| | (105 | ) | | (671 | ) | | 14,197 |
| Total assets | | $ | 9,590,487 |
| | 109,601 |
| | 14,519 |
| | 9,714,607 |
|
| | | | | | | | | | | | | | | | | Community | | Consumer | | | | | September 30, 2015 | | Banking | | Finance | | All other (1) | | Consolidated | External interest income | | $ | 76,357 |
| | 4,517 |
| | 217 |
| | 81,091 |
| Intersegment interest income/ expense | | 618 |
| | — |
| | (618 | ) | | — |
| Interest expense | | 12,991 |
| | 618 |
| | 541 |
| | 14,150 |
| Provision for loan losses | | 2,666 |
| | 501 |
| | — |
| | 3,167 |
| Noninterest income | | 17,756 |
| | 362 |
| | 22 |
| | 18,140 |
| Noninterest expense | | 59,793 |
| | 3,151 |
| | 860 |
| | 63,804 |
| Income tax expense (benefit) | | 5,617 |
| | 250 |
| | (629 | ) | | 5,238 |
| Net income | | $ | 13,664 |
| | 359 |
| | (1,151 | ) | | 12,872 |
| Total assets | | $ | 8,805,421 |
| | 111,109 |
| | 18,378 |
| | 8,934,908 |
|
| | (1) | Eliminations consist of intercompany loans, interest income and interest expense. |
At or for the nine months ended (in thousands): | | | | | | | | | | | | | | | | | Community | | Consumer | | | | | September 30, 2016 | | Banking | | Finance | | All other (1) | | Consolidated | External interest income | | $ | 244,572 |
| | 12,831 |
| | 689 |
| | 258,092 |
| Intersegment interest income | | 1,918 |
| | — |
| | (1,918 | ) | | — |
| Interest expense | | 27,943 |
| | 1,918 |
| | 1,347 |
| | 31,208 |
| Provision for loan losses | | 8,854 |
| | 2,543 |
| | — |
| | 11,397 |
| Noninterest income | | 59,278 |
| | 1,152 |
| | 111 |
| | 60,541 |
| Noninterest expense | | 231,983 |
| | 8,715 |
| | 870 |
| | 241,568 |
| Income tax expense (benefit) | | 10,144 |
| | 335 |
| | (1,192 | ) | | 9,287 |
| Net income | | $ | 26,844 |
| | 472 |
| | (2,143 | ) | | 25,173 |
| Total assets | | $ | 9,590,487 |
| | 109,601 |
| | 14,519 |
| | 9,714,607 |
|
| | | | | | | | | | | | | | | | | Community | | Consumer | | | | | September 30, 2015 | | Banking | | Finance | | All other (1) | | Consolidated | External interest income | | $ | 219,961 |
| | 13,339 |
| | 641 |
| | 233,941 |
| Intersegment interest income | | 1,775 |
| | — |
| | (1,775 | ) | | — |
| Interest expense | | 38,660 |
| | 1,775 |
| | 1,406 |
| | 41,841 |
| Provision for loan losses | | 3,766 |
| | 1,351 |
| | — |
| | 5,117 |
| Noninterest income | | 48,162 |
| | 1,043 |
| | 85 |
| | 49,290 |
| Noninterest expense | | 161,915 |
| | 9,185 |
| | 1,550 |
| | 172,650 |
| Income tax expense (benefit) | | 19,835 |
| | 859 |
| | (1,418 | ) | | 19,276 |
| Net income | | $ | 45,722 |
| | 1,212 |
| | (2,587 | ) | | 44,347 |
| Total assets | | $ | 8,805,421 |
| | 111,109 |
| | 18,378 |
| | 8,934,908 |
|
| | (1) | Eliminations consist of intercompany loans, interest income and interest expense. |
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