Northwest Bancshares 8K Results of Operations and Financial Condition | NWBI 25 Jan 11

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 76% Increase in

Annual Earnings and Dividend Declaration

Warren, Pennsylvania – January 25, 2011

Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2010 of $12.7 million, or $0.12 per diluted share. This represents an increase of $11.7 million over the same quarter last year when net income was $1.0 million, or $0.01 per diluted share, and a decrease of $2.8 million compared to the quarter ended September 30, 2010 when net income was $15.5 million, or $0.14 per diluted share. The annualized returns on average shareholders’ equity and average assets for the current quarter were 3.90% and 0.63% compared to 0.46% and 0.05% for the same quarter last year and 4.72% and 0.76% for the quarter ended September 30, 2010.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share payable on February 17, 2011, to shareholders of record as of February 4, 2011. This represents the 65th 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 record annual earnings of $57.5 million during a year when the banking industry continued to be challenged by economic and regulatory issues. Our core earnings for the year increased approximately 32% over the previous year while we grew our loan portfolio by 4.4% and our deposits by 2.5%. Most notably, our checking deposits grew by $102.4 million, or 8.2%. Given the significant strength of our current capital position, we initiated our previously-announced common stock repurchase program on December 20, 2010, and prior to the end of the year purchased 555,000 shares, at an average purchase price of $11.69. Following the completion of these repurchases, our tangible common equity ratio was 14.2%, and all capital ratios were far in excess of regulatory requirements.”

Net interest income increased by $9.2 million, or 15.8%, to $67.2 million for the quarter ended December 31, 2010, from $58.0 million for the quarter ended December 31, 2009, which was primarily attributable to an increase in interest income from loans receivable and a decrease in the cost of deposits. Interest income on loans receivable increased by $2.8 million, or 3.5%, to $83.1 million as the Company’s average loans outstanding increased by $323.2 million, or 6.2%. Interest expense on deposits decreased by $5.8 million, or 25.5%, to $17.0 million as a result of a decrease in market interest rates and continued improvement in the mix of deposits as lower-cost transaction accounts growing more rapidly than other types of deposits.

The provision for loan losses decreased by $582,000, or 4.0%, to $13.9 million for the quarter ended December 31, 2010, from $14.5 million a year ago. As of December 31, 2010, the allowance for loan losses was $76.4 million, or 1.38% of total loans, compared to $70.4 million, or 1.33% of total loans, as of December 31, 2009. Loans 90 days or more delinquent were $100.4 million as of December 31, 2010, compared to $109.8 million as of December 31, 2009. The ratio of nonperforming assets to total assets increased to 2.08%, from 1.81% at the beginning of the year, as the Company was more aggressive in placing troubled, but current, loans on nonaccrual.

Noninterest income decreased by $2.1 million, or 12.3%, to $15.2 million for the quarter ended December 31, 2010, from $17.3 million for the quarter ended December 31, 2009. This decrease was primarily attributable to a $3.5 million bargain purchase gain recorded in the quarter ended December 31, 2009 related to the acquisition of Keystone State Savings Bank. Partially offsetting this decrease were increases in mortgage banking income and insurance commission income. Mortgage banking income increased by $431,000, or 43.4%, to $1.4 million for the quarter ended December 31, 2010, from $992,000 for the quarter ended December 31, 2009 resulting from more favorable pricing in the secondary market. Insurance commission income increased by $743,000, or 120.0%, to $1.4 million for the quarter ended December 31, 2010, from $619,000 for the quarter ended December 31, 2009 due to the acquisition of Veracity Benefits Design, Inc., an employee benefits firm specializing in services to employer and employee groups.

Noninterest expense decreased by $13.5 million, or 21.1%, to $50.7 million for the quarter ended December 31, 2010, from $64.2 million in the prior year. This decrease is primarily due to a $13.8 million non-recurring contribution expense recognized during the quarter ended December 31, 2009 related to the establishment of a charitable foundation in conjunction with our second-step common stock offering. Partially offsetting this decrease were increases in premises and occupancy costs and processing expenses relating to the growth of the company. Premises and occupancy costs increased by $233,000, or 4.3%, to $5.7 million of the quarter ended December 31, 2010, from $5.4 million for the quarter ended December 31, 2009. Processing expenses increased by $212,000, or 3.6%, to $6.0 million for the quarter ended December 31, 2010, from $5.8 million for the quarter ended December 31, 2009.

Net income for the year ended December 31, 2010 of $57.5 million, or $0.53 per diluted share, represents an increase of $24.8 million, or 76.2% compared to net income of $32.7 million, or $0.30 per diluted share, for the year ended December 31, 2009. The annualized returns on average shareholders’ equity and average assets were 4.40% and 0.71%, respectively, for the current year compared to 4.71% and 0.46%, respectively, in the prior year. Year over year, net interest income increased by $29.0 million, or 12.7%, noninterest income increased by $7.6 million, or 14.2%, and noninterest expense decreased by $4.0 million, or 2.0%.

The Company also announced that its Board of Directors authorized the closing of its three offices in the south Florida market, which have combined deposits of $59.0 million and loans of $106.1 million. The offices will be closed in 2011, but the timing of the closings has not been determined.

Founded in 1896 and headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc., through its subsidiary Northwest Savings Bank, currently operates 171 community banking locations in Pennsylvania, New York, Ohio, Maryland and Florida. Northwest Savings Bank is a full-service financial institution offering a complete line of retail and business banking products as well as investment management and trust services. The Company also operates 52 consumer finance offices in Pennsylvania through its subsidiary, Northwest Consumer Discount Company. Northwest Bancshares, Inc.’s 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)

	December 31,
Assets	2010			2009
Cash and cash equivalents	$	40,708			69,265
Interest-earning deposits in other financial institutions		677,771			1,037,893
Federal funds sold and other short-term investments		632			632
Marketable securities available-for-sale (amortized cost of $945,791 and $1,059,177)		950,683			1,067,089
Marketable securities held-to-maturity (fair value of $354,126 and $0)		357,922			-
Total cash, interest-earning deposits and marketable securities		2,027,716			2,174,879

Loans held for sale		11,376			1,164
Mortgage loans - one- to four- family		2,386,928			2,334,538
Home equity loans and lines of credit		1,092,606			1,067,584
Consumer loans		259,123			286,292
Commercial real estate loans		1,350,319			1,238,217
Commercial business loans		433,653			371,670
Total loans receivable		5,534,005			5,299,465
Allowance for loan losses		(76,412	)		(70,403	)
Loans receivable, net		5,457,593			5,229,062

Federal Home Loan Bank stock, at cost		60,080			63,242
Accrued interest receivable		26,216			25,780
Real estate owned, net		20,780			20,257
Premises and Equipment, net		128,101			124,316
Bank owned life insurance		132,237			128,270
Goodwill		171,882			171,363
Other intangible assets		3,942			4,678
Other assets		119,608			83,451
Total assets	$	8,148,155			8,025,298

Liabilities and Shareholders' equity
Liabilities
Noninterest-bearing demand deposits	$	575,281			487,036
Interest-bearing demand deposits		782,257			768,110
Savings deposits		1,948,882			1,744,537
Time deposits		2,457,916			2,624,741
Total deposits		5,764,336			5,624,424
Borrowed funds		891,293			897,326
Advances by borrowers for taxes and insurance		22,868			22,034
Accrued interest payable		1,716			4,493
Other liabilities		57,398			57,412
Junior subordinated debentures		103,094			103,094
Total liabilities		6,840,705			6,708,783

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, 110,295,117 shares
and 110,641,858 shares issued, respectively		1,103			1,106
Paid-in-capital		824,164			828,195
Retained earnings		523,089			508,842
Unallocated common stock of Employee Stock Ownership Plan		(27,409	)		(11,651	)
Accumulated other comprehensive loss		(13,497	)		(9,977	)
Total shareholders' equity		1,307,450			1,316,515
Total liabilities and shareholders' equity	$	8,148,155			8,025,298

Equity to assets		16.05	%		16.40	%
Tangible common equity to assets		14.19	%		14.53	%
Book value per share	$	11.85		$	11.90
Tangible book value per share	$	10.26		$	10.31
Closing market price per share	$	11.78		$	11.27
Full time equivalent employees		1,881			1,867
Number of banking offices		171			171

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income - Unaudited

(Dollars in thousands, except per share amounts)

	Three months ended
	December 31,						September 30,
	2010			2009			2010
Interest income:
Loans receivable		83,096			80,322			83,372
Mortgage-backed securities		5,886			6,405			6,534
Taxable investment securities		428			1,246			489
Tax-free investment securities		3,111			2,678			3,090
Interest-earning deposits		496			226			524
Total interest income		93,017			90,877			94,009

Interest expense:
Deposits		17,025			22,839			17,772
Borrowed funds		8,762			9,994			9,587
Total interest expense		25,787			32,833			27,359

Net interest income		67,230			58,044			66,650
Provision for loan losses		13,918			14,500			9,871
Net interest income after provision for loan losses		53,312			43,544			56,779

Noninterest income:
Impairment losses on securities		(1,841	)		(5,920	)		(1,830	)
Noncredit related losses on securities not expected
to be sold (recognized in other comprehensive income)		1,006			5,004			1,438
Net impairment losses		(835	)		(916	)		(392	)
Gain on sale of investments, net		8			26			17
Service charges and fees		9,296			9,343			9,821
Trust and other financial services income		1,907			1,958			1,600
Insurance commission income		1,362			619			1,393
Loss on real estate owned, net		(279	)		(120	)		(2,014	)
Income from bank owned life insurance		1,228			1,195			1,212
Mortgage banking income		1,423			992			752
Gain on bargain purchase of Keystone State Savings Bank		-			3,503			-
Other operating income		1,058			695			1,439
Total noninterest income		15,168			17,295			13,828

Noninterest expense:
Compensation and employee benefits		25,328			25,637			24,565
Premises and occupancy costs		5,675			5,442			5,648
Office operations		3,233			3,372			4,460
Processing expenses		6,041			5,829			5,863
Marketing expenses		2,930			4,106			2,208
Federal deposit insurance premiums		2,334			2,148			2,424
Professional services		291			691			1,126
Amortization of intangible assets		518			649			725
Real estate owned expense		636			691			654
Acquisition expense		591			-			220
Contribution to Northwest Charitable Foundation		-			13,822			-
Other expense		3,122			1,850			1,155
Total noninterest expense		50,699			64,237			49,048

Income before income taxes		17,781			(3,398	)		21,559
Income tax expense		5,043			(4,404	)		6,068

Net income		12,738			1,006			15,491

Basic earnings per share	$	0.12		$	0.01		$	0.14

Diluted earnings per share	$	0.12		$	0.01		$	0.14

Annualized return on average equity		3.90	%		0.46	%		4.72	%
Annualized return on average assets		0.63	%		0.05	%		0.76	%

Basic common shares outstanding		108,337,001			109,286,606			108,340,566
Diluted common shares outstanding		108,848,189			109,820,238			108,914,069

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Dollars in thousands, except per share amounts)

	Year ended
	December 31,
	2010			2009
Interest income:
Loans receivable		328,948			320,121
Mortgage-backed securities		25,271			27,263
Taxable investment securities		2,514			5,384
Tax-free investment securities		11,738			11,054
Interest-earning deposits		2,097			641
Total interest income		370,568			364,463

Interest expense:
Deposits		75,174			95,394
Borrowed funds		37,753			40,412
Total interest expense		112,927			135,806

Net interest income		257,641			228,657
Provision for loan losses		40,486			41,847
Net interest income after provision
for loan losses		217,155			186,810

Noninterest income:
Impairment losses on securities		(2,741	)		(12,408	)
Noncredit related losses on securities not expected
to be sold (recognized in other comprehensive income)		1,193			6,311
Net impairment losses		(1,548	)		(6,097	)
Gain on sale of investments, net		2,208			403
Service charges and fees		37,921			34,811
Trust and other financial services income		7,252			6,307
Insurance commission income		5,190			2,658
Loss on real estate owned, net		(2,572	)		(4,054	)
Income from bank owned life insurance		5,080			4,791
Mortgage banking income		2,196			7,434
Gain on bargain purchase of Keystone State Savings Bank		-			3,503
Other operating income		4,671			3,581
Total noninterest income		60,398			53,337

Noninterest expense:
Compensation and employee benefits		100,709			95,594
Premises and occupancy costs		22,665			21,963
Office operations		13,864			12,947
Processing expenses		23,152			21,312
Marketing expenses		9,875			9,152
Federal deposit insurance premiums		9,054			8,309
FDIC special assessment		-			3,288
Professional services		2,728			2,590
Amortization of intangible assets		2,784			3,020
Real estate owned expense		2,901			2,461
Acquisition expense		1,229			-
Contribution to Northwest Charitable Foundation		-			13,822
Other expense		7,547			6,036
Total noninterest expense		196,508			200,494

Income before income taxes		81,045			39,653
Income tax expense		23,522			7,000

Net income		57,523			32,653

Basic earnings per share	$	0.53		$	0.30

Diluted earnings per share	$	0.53		$	0.30

Annualized return on average equity		4.40	%		4.71	%
Annualized return on average assets		0.71	%		0.46	%

Basic common shares outstanding		108,308,834			109,078,129
Diluted common shares outstanding		108,931,377			109,459,875

Northwest Bancshares, Inc. and Subsidiaries

Asset Quality

(Dollars in thousands)

	Three months ended						Year ended
	December 31,						December 31,
	2010			2009			2010			2009
Allowance for loan losses
Beginning balance	$	77,245			67,775			70,403			54,929
Provision		13,918			14,500			40,486			41,847
Charge-offs mortgage		(2,550	)		(137	)		(4,497	)		(1,437	)
Charge-offs consumer		(2,789	)		(2,530	)		(10,494	)		(7,045	)
Charge-offs commercial		(10,318	)		(9,633	)		(21,881	)		(19,334	)
Recoveries		906	#		428			2,395			1,443
Ending balance	$	76,412			70,403			76,412			70,403

Net charge-offs to average loans, annualized		1.06	%		0.91	%		0.63	%		0.51	%

	December 31,
	2010			2009			2008			2007
Nonperforming loans	$	148,391			124,626			99,203			49,610
Real estate owned, net		20,780			20,257			16,844			8,667
Nonperforming assets	$	169,171			144,883			116,047			58,277

Nonperforming loans to total loans		2.68	%		2.35	%		1.91	%		1.03	%

Nonperforming assets to total assets		2.08	%		1.81	%		1.67	%		0.87	%

Allowance for loan losses to total loans		1.38	%		1.33	%		1.06	%		0.86	%

Allowance for loan losses to nonperforming loans		51.49	%		56.49	%		55.37	%		84.22	%

Northwest Bancshares, Inc. and Subsidiaries

Delinquency

(Dollars in thousands)

Loans past due schedule
(Number of loans and dollar amount of loans)
	December 31,
	2010				*		2009				*		2008				*
Loans past due 30 days to 59 days:
One- to four- family residential loans		427	$	35,329	1.5	%		350	$	27,998	1.2	%		392	$	32,988	1.3	%
Consumer loans		1,238		12,635	0.9	%		1,100		11,226	0.8	%		1,157		11,295	0.9	%
Multifamily and commercial RE loans		82		16,287	1.2	%		85		16,152	1.3	%		99		18,901	1.8	%
Commercial business loans		48		6,590	1.5	%		48		3,293	0.9	%		86		7,700	2.2	%
Total loans past due 30 days to 59 days		1,795	$	70,841	1.3	%		1,583	$	58,669	1.1	%		1,734	$	70,884	1.4	%

Loans past due 60 days to 89 days:
One- to four- family residential loans		106	$	9,848	0.4	%		85	$	6,772	0.3	%		101	$	7,599	0.3	%
Consumer loans		437		4,580	0.3	%		392		3,029	0.2	%		379		2,836	0.2	%
Multifamily and commercial RE loans		39		14,365	1.1	%		35		5,811	0.5	%		54		8,432	0.8	%
Commercial business loans		9		1,678	0.4	%		26		2,474	0.7	%		45		3,801	1.1	%
Total loans past due 60 days to 89 days		591	$	30,471	0.6	%		538	$	18,086	0.3	%		579	$	22,668	0.4	%

Loans past due 90 days or more:
One- to four- family residential loans		275	$	29,751	1.2	%		279	$	29,373	1.3	%		223	$	20,435	0.8	%
Consumer loans		564		12,828	0.9	%		727		12,544	0.9	%		687		9,756	0.7	%
Multifamily and commercial RE loans		181		44,965	3.3	%		199		49,594	4.0	%		155		43,828	4.1	%
Commercial business loans		111		12,877	3.0	%		124		18,269	4.9	%		114		25,184	7.1	%
Total loans past due 90 days or more		1,131	$	100,421	1.8	%		1,329	$	109,780	2.1	%		1,179	$	99,203	1.9	%

* - 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 December 31, 2010:

(Dollars in thousands)

Loans outstanding:

	Mortgage		(1)			Consumer		(2)			Commercial		(3)			Total		(4)

Pennsylvania	$	1,942,824		81.0	%		1,170,012		86.6	%		1,077,440		60.4	%		4,190,276		75.7	%
New York		162,367		6.8	%		113,153		8.4	%		381,671		21.4	%		657,191		11.9	%
Ohio		20,111		0.8	%		15,222		1.1	%		41,834		2.4	%		77,167		1.4	%
Maryland		194,607		8.1	%		35,248		2.6	%		155,731		8.7	%		385,586		7.0	%
Florida		30,908		1.3	%		12,487		0.9	%		62,673		3.5	%		106,068		1.9	%
All other		47,487		2.0	%		5,607		0.4	%		64,623		3.6	%		117,717		2.1	%
Total	$	2,398,304		100.0	%		1,351,729		100.0	%		1,783,972		100.0	%		5,534,005		100.0	%

(1) - Percentage of total mortgage loans

(2) - Percentage of total consumer loans

(3) - Percentage of total commercial loans

(4) - Percentage of total loans

Loans 90 or more past due:

	Mortgage		(5)			Consumer		(6)			Commercial		(7)			Total		(8)

Pennsylvania	$	17,891		0.9	%		9,673		0.8	%		33,304		3.1	%		60,868		1.5	%
New York		1,463		0.9	%		523		0.5	%		1,940		0.5	%		3,926		0.6	%
Ohio		134		0.7	%		87		0.6	%		-		0.0	%		221		0.3	%
Maryland		4,573		2.3	%		1,169		3.3	%		6,051		3.9	%		11,793		3.1	%
Florida		4,768		15.4	%		1,326		10.6	%		8,145		13.0	%		14,239		13.4	%
All other		922		1.9	%		50		0.9	%		8,402		13.0	%		9,374		8.0	%
Total	$	29,751		1.2	%		12,828		0.9	%		57,842		3.2	%		100,421		1.8	%

(5) - Percentage of mortgage loans in that geographic area

(6) - Percentage of consumer loans in that geographic area

(7) - Percentage of commercial loans in that geographic area

(8) - 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 December 31, 2010:
			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	$	67		-		-			67

Debt issued by government sponsored enterprises:
Due in one year - five years		1,989		93		-			2,082
Due in five years - ten years		6,495		347		-			6,842
Due after ten years		9,948		-		(53	)		9,895

Equity securities		861		86		(1	)		946

Municipal securities:
Due in one year - five years		3,382		125		-			3,507
Due in five years - ten years		37,898		1,023		-			38,921
Due after ten years		173,255		1,158		(8,548	)		165,865

Corporate trust preferred securities:
Due in one year or less		100		-		-			100
Due in one year - five years		500		-		-			500
Due after ten years		25,417		196		(7,353	)		18,260

Mortgage-backed securities:
Fixed rate pass-through		111,581		7,153		(12	)		118,722
Variable rate pass-through		167,685		7,260		(8	)		174,937
Fixed rate non-agency CMO		13,825		91		(843	)		13,073
Fixed rate agency CMO		112,483		1,067		(759	)		112,791
Variable rate non-agency CMO		3,274		-		(379	)		2,895
Variable rate agency CMO		277,031		4,525		(276	)		281,280

Total mortgage-backed securities		685,879		20,096		(2,277	)		703,698

Total marketable securities available-for-sale	$	945,791		23,124		(18,232	)		950,683

Marketable securities held-to-maturity as of December 31, 2010:
			Gross		Gross
			unrealized		unrealized
	Amortized		holding		holding			Market
	cost		gains		losses			value

Debt issued by government sponsored enterprises:
Due in one year - five years	$	26,500		36		-			26,536

Municipal securities:
Due after ten years		80,020		7		(3,940	)		76,087

Mortgage-backed securities:
Fixed rate pass-through		29,820		410		(4	)		30,226
Variable rate pass-through		9,853		79		-			9,932
Fixed rate agency CMO		186,948		924		(1,701	)		186,171
Variable rate agency CMO		24,781		393		-			25,174

Total mortgage-backed securities		251,402		1,806		(1,705	)		251,503

Total marketable securities held-to-maturity	$	357,922		1,849		(5,645	)		354,126

Issuers of mortgage-backed securities as of December31, 2010:
Fannie Mae	$	347,993		8,713		(1,244	)		355,462
Ginnie Mae		219,589		4,880		(638	)		223,831
Freddie Mac		328,754		8,218		(866	)		336,106
SBA		23,094		-		-			23,094
Non-agency		17,851		91		(1,234	)		16,708
Total	$	937,281		21,902		(3,982	)		955,201

Northwest Bancshares, Inc. and Subsidiaries

Investment Portfolio - Continued

(Dollars in thousands)

	Book		As a %
	Value		of Book
	12/31/2010		Value
Municipal securities by state:
Pennsylvania
School district	$	140,162		47.58	%
General obligation		59,725		20.28	%
Revenue bonds		16,664		5.66	%
Total Pennsylvania		216,551		73.52	%
New York		33,920		11.52	%
Ohio		6,426		2.18	%
All other states		37,658		12.78	%
	$	294,555

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 December 31,
	2010							2009
	Average			Interest		Avg.		Average			Interest		Avg.
	Balance					Yield/		Balance					Yield/
						Cost							Cost
Assets:
Interest-earning assets:
Loans receivable (a) (b) (d)	$	5,565,989			83,491		5.99%		5,242,823			80,160		6.13%
Mortgage-backed securities (c)		879,958			5,886		2.68%		744,755			6,405		3.44%
Investment securities (c) (d)		365,003			5,213		5.71%		349,309			5,365		6.14%
FHLB stock		61,042			-		-		63,216			-		-
Other interest-earning deposits		721,174			496		0.27%		477,269			226		0.19%

Total interest-earning assets		7,593,166			95,086		5.00%		6,877,372			92,156		5.37%

Noninterest earning assets (e)		588,945							669,511

Total assets	$	8,182,111							7,546,883

Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings accounts	$	1,058,373			1,695		0.64%		934,213			1,852		0.79%
Interest-bearing demand accounts		786,488			249		0.13%		755,158			434		0.23%
Money market accounts		906,414			1,209		0.53%		805,347			1,768		0.87%
Certificate accounts		2,456,893			13,872		2.24%		2,604,329			18,785		2.86%
Borrowed funds (f)		892,461			7,326		3.26%		899,711			8,558		3.77%
Junior subordinated debentures		103,094			1,436		5.45%		103,094			1,436		5.45%

Total interest-bearing liabilities		6,203,723			25,787		1.65%		6,101,852			32,833		2.13%

Noninterest bearing liabilities		671,412							569,269

Total liabilities		6,875,135							6,671,121

Shareholders' equity		1,306,976							875,762

Total liabilities and shareholders' equity	$	8,182,111							7,546,883

Net interest income/ Interest rate spread					69,299		3.35%					59,323		3.24%

Net interest-earning assets/ Net interest margin	$	1,389,443					3.65%		775,520					3.45%

Ratio of interest-earning assets to
interest-bearing liabilities		1.22	X						1.13	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.

(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)

	Year ended December 31,
	2010							2009
	Average			Interest		Avg.		Average			Interest		Avg.
	Balance					Yield/		Balance					Yield/
						Cost							Cost
Assets:
Interest-earning assets:
Loans receivable (a) (b) (d)	$	5,487,645			330,431		6.03%		5,199,829			321,764		6.17%
Mortgage-backed securities (c)		816,182			25,271		3.10%		720,683			27,263		3.78%
Investment securities (c) (d)		369,858			20,572		5.56%		360,620			22,390		6.21%
FHLB stock		62,688			-		-		63,162			-		-
Other interest-earning deposits		805,161			2,097		0.26%		297,228			641		0.21%

Total interest-earning assets		7,541,534			378,371		5.02%		6,641,522			372,058		5.59%

Noninterest earning assets (e)		578,317							523,038

Total assets	$	8,119,851							7,164,560

Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings accounts	$	1,031,362			8,166		0.79%		850,707			6,501		0.76%
Interest-bearing demand accounts		776,091			1,211		0.16%		739,102			2,536		0.34%
Money market accounts		888,081			5,977		0.67%		752,166			8,471		1.13%
Certificate accounts		2,483,481			59,820		2.41%		2,546,867			77,886		3.06%
Borrowed funds (f)		896,843			32,054		3.57%		936,571			34,578		3.69%
Junior subordinated debentures		103,094			5,699		5.45%		105,672			5,834		5.45%

Total interest-bearing liabilities		6,178,952			112,927		1.83%		5,931,085			135,806		2.29%

Noninterest bearing liabilities		634,119							540,536

Total liabilities		6,813,071							6,471,621

Shareholders' equity		1,306,780							692,939

Total liabilities and shareholders' equity	$	8,119,851							7,164,560

Net interest income/ Interest rate spread					265,444		3.19%					236,252		3.30%

Net interest-earning assets/ Net interest margin	$	1,362,582					3.52%		710,437					3.56%

Ratio of interest-earning assets to
interest-bearing liabilities		1.22	X						1.12	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.

(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)

	Three months ended						Three months ended
	December 31, 2010						September 30, 2010
	Average			Interest		Avg.	Average			Interest		Avg.
	Balance					Yield/	Balance					Yield/
						Cost						Cost
Assets:
Interest-earning assets:
Loans receivable (a) (b) (d)	$	5,565,989			83,491	5.99%		5,569,014			83,753	6.00%
Mortgage-backed securities (c)		879,958			5,886	2.68%		853,714			6,534	3.06%
Investment securities (c) (d)		365,003			5,213	5.71%		378,145			5,243	5.55%
FHLB stock		61,042			-	-		63,242			-	-
Other interest-earning deposits		721,174			496	0.27%		706,829			524	0.29%

Total interest-earning assets		7,593,166			95,086	5.00%		7,570,944			96,054	5.06%

Noninterest earning assets (e)		588,945						591,977

Total assets	$	8,182,111						8,162,921

Liabilities and shareholders' equity:
Interest-bearing liabilities:
Savings accounts	$	1,058,373			1,695	0.64%		1,071,708			2,203	0.82%
Interest-bearing demand accounts		786,488			249	0.13%		778,597			244	0.12%
Money market accounts		906,414			1,209	0.53%		903,278			1,301	0.57%
Certificate accounts		2,456,893			13,872	2.24%		2,446,317			14,024	2.27%
Borrowed funds (f)		892,461			7,326	3.26%		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		6,203,723			25,787	1.65%		6,201,612			27,359	1.75%

Noninterest bearing liabilities		671,412						648,905

Total liabilities		6,875,135						6,850,517

Shareholders' equity		1,306,976						1,312,404

Total liabilities and shareholders' equity	$	8,182,111						8,162,921

Net interest income/ Interest rate spread					69,299	3.35%					68,695	3.31%

Net interest-earning assets/ Net interest margin	$	1,389,443				3.65%		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.

(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.

Northwest Bancshares (NWBI) 8-KResults of Operations and Financial Condition