Northwest Bancshares(NWBI)

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7 Sturdy Low-Beta Dividends With Yields Up To 8%
Forbes· 2025-08-09 14:25
Core Viewpoint - The article discusses seven low beta stocks with dividend yields up to 8%, which are considered more stable during market downturns, providing a cushion against volatility [2][3]. Group 1: Low-Beta Dividend Stocks - Getty Realty (GTY) offers a 6.6% yield with a 5-year beta of 0.86 and a 1-year beta of 0.12, indicating lower volatility compared to the market. The company has a stable cash-flowing tenant base, primarily from convenience stores and car washes [5][7]. - AES Corp. (AES) has a 5.5% yield and operates with a 1-year beta of 0.88 and a 5-year beta of 0.96. It combines traditional utility services with renewable energy sales, providing growth potential [9][10]. - Northwest Bancshares (NWBI) offers a 6.8% yield with a 5-year beta of 0.69 and a 1-year beta of 0.80. The company has a solid balance sheet but faces challenges in consistent growth despite a recent merger [11][12]. - Conagra Brands (CAG) has a yield of 7.4% but faces significant challenges, including supply chain issues and food inflation, with a 1-year beta of -0.05 and a 5-year beta of 0.08 [17][21]. - Cal-Maine Foods (CALM) boasts an 8.0% yield and has seen a 60% increase year-to-date, with a 1-year beta of 0.67 and a 5-year beta of 0.19. The company has benefited from rising egg prices but faces income variability [23][24]. Group 2: Market Performance and Trends - The article highlights that low beta stocks tend to attract buyers during market downturns, which can help stabilize their share prices [3]. - The performance of low beta stocks like Kraft Heinz (KHC) and General Mills (GIS) has been disappointing, with low betas reflecting counter-market movements rather than stability [14][15]. - The overall trend indicates that while some low beta stocks have maintained dividends, their growth has been limited, and challenges remain in the current market environment [16][22].
Northwest Bancshares(NWBI) - 2025 Q2 - Quarterly Report
2025-08-05 20:03
PART I FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported increased total assets and significantly higher Q2 2025 net income, with a major merger completed post-quarter Consolidated Statements of Financial Condition (Balance Sheet) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$14,485,107** | **$14,408,224** | | Total cash and marketable securities | $2,181,519 | $2,147,908 | | Loans receivable, net | $11,212,665 | $11,063,195 | | Goodwill | $380,997 | $380,997 | | **Total Liabilities** | **$12,843,039** | **$12,811,368** | | Total deposits | $12,201,029 | $12,144,554 | | Borrowed funds | $198,008 | $200,331 | | **Total Shareholders' Equity** | **$1,642,068** | **$1,596,856** | Consolidated Statements of Income Highlights | (in thousands, except EPS) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $119,444 | $106,841 | $247,262 | $210,079 | | Provision for credit losses - loans | $11,456 | $2,169 | $19,712 | $6,403 | | Noninterest Income | $30,938 | $(8,849) | $59,293 | $19,114 | | Noninterest Expense | $97,540 | $92,420 | $189,277 | $182,444 | | **Net Income** | **$33,675** | **$4,747** | **$77,133** | **$33,910** | | **Diluted EPS** | **$0.26** | **$0.04** | **$0.60** | **$0.27** | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $105,285 | $111,357 | | Net cash used in investing activities | $(135,955) | $87,662 | | Net cash provided by financing activities | $9,367 | $(92,846) | | **Net (decrease)/increase in cash** | **$(21,303)** | **$106,173** | - On July 25, 2025, the Company completed its merger with Penns Woods Bancorp, Inc. for a total estimated consideration of **$234 million**, expected to increase total assets to approximately **$17 billion**[126](index=126&type=chunk)[128](index=128&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail marketable securities, loan portfolio, credit losses, and the impact of the Penns Woods Bancorp merger Marketable Securities Portfolio (June 30, 2025) | (in thousands) | Amortized Cost | Fair Value | | :--- | :--- | :--- | | **Available-for-Sale** | **$1,341,651** | **$1,194,883** | | U.S. government and agencies | $43,461 | $34,930 | | Mortgage-backed securities | $1,199,472 | $1,071,192 | | **Held-to-Maturity** | **$719,561** | **$628,936** | | U.S. government-sponsored enterprises | $124,463 | $113,867 | | Mortgage-backed securities | $595,098 | $515,069 | - Unrealized losses on investment securities totaled **$242.0 million** as of June 30, 2025, primarily attributed to changes in the interest rate environment rather than credit quality, with no intent or requirement to sell before recovery[23](index=23&type=chunk)[24](index=24&type=chunk) Loan Portfolio Composition | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Personal Banking** | **$6,420,921** | **$6,322,750** | | Residential mortgage | $3,052,126 | $3,178,269 | | Vehicle loans | $2,084,500 | $1,870,843 | | **Commercial Banking** | **$4,920,903** | **$4,857,264** | | Commercial real estate | $2,418,992 | $2,495,726 | | Commercial loans | $2,138,499 | $2,007,402 | | **Total Loans Receivable, Gross** | **$11,341,824** | **$11,180,014** | - The allowance for credit losses (ACL) increased to **$129.2 million** at June 30, 2025, from **$116.8 million** at December 31, 2024, with a provision for credit losses of **$19.7 million** for the first six months of 2025[31](index=31&type=chunk) - Nonaccrual loans significantly increased to **$102.4 million** as of June 30, 2025, compared to **$61.4 million** at December 31, 2024, driven by commercial real estate and commercial loans[33](index=33&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant increase in Q2 2025 net income, driven by improved interest and noninterest income, loan growth, and strong capital [Comparison of Financial Condition](index=49&type=section&id=Comparison%20of%20Financial%20Condition) Total assets increased to **$14.5 billion** due to loan growth and deposit increases, while capital ratios remained strong - Gross loans receivable increased by **$162 million** from year-end 2024, led by organic growth in the vehicle loan portfolio (+$214 million) and the commercial and industrial (C&I) loan portfolio (+$131 million)[142](index=142&type=chunk) - Total deposits increased by **$56 million**, driven by a **$145 million** rise in money market accounts and a **$40 million** increase in savings deposits, as customers shifted funds from maturing time deposits[143](index=143&type=chunk)[144](index=144&type=chunk) Uninsured Deposits (June 30, 2025) | (in thousands) | Balance | % of Total Deposits | | :--- | :--- | :--- | | Uninsured deposits per Call Report | $3,274,416 | 26.8% | | Less: Intercompany & Collateralized | $1,727,231 | 14.1% | | **Adjusted Uninsured Deposits** | **$1,547,185** | **12.7%** | Regulatory Capital Ratios (Company) | Ratio | June 30, 2025 | Minimum Requirement* | | :--- | :--- | :--- | | CET1 Capital | 12.84% | 7.00% | | Tier 1 Capital | 14.01% | 8.50% | | Total Capital | 16.32% | 10.50% | | Tier 1 Leverage | 10.55% | 4.00% | *Includes capital conservation buffer [Comparison of Operating Results](index=55&type=section&id=Comparison%20of%20Operating%20Results) Q2 2025 net income surged from increased net interest and noninterest income, despite higher credit loss provisions and acquisition costs - Net income for Q2 2025 was **$34 million**, a **609% increase** from **$5 million** in Q2 2024, primarily due to higher net interest income and the absence of a significant loss on investment sales in the prior year[178](index=178&type=chunk) - Net interest income (FTE) for Q2 2025 increased by **$13 million (12%)** year-over-year, with the net interest margin (FTE) expanding by **36 basis points** to **3.56%**, driven by higher earning asset yields and lower interest expense on borrowings[182](index=182&type=chunk) - The provision for credit losses increased by **$9 million** from Q2 2024, primarily driven by downgrades within the commercial real estate portfolio[208](index=208&type=chunk)[209](index=209&type=chunk) - Noninterest expense increased by **$5 million (6%)** from Q2 2024, mainly due to a **$4 million** increase in acquisition expenses related to the Penns Woods merger[219](index=219&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Interest rate risk is managed by ALCO, with simulations projecting rate change impacts on net income and equity within policy limits Interest Rate Sensitivity Analysis (Simulated 12-Month Impact) | Parallel Rate Shift | % Change in Net Income | % Change in Market Value of Equity | | :--- | :--- | :--- | | +300 bps | (9.1)% | (13.9)% | | +200 bps | (5.7)% | (9.2)% | | +100 bps | (2.5)% | (4.4)% | | -100 bps | (1.3)% | +2.4% | | -200 bps | (11.1)% | +1.2% | | -300 bps | (15.7)% | +1.1% | - The company manages interest rate risk through its ALCO Committee, which monitors the balance sheet structure, pricing, and cash flows, with quarterly oversight from the Board's Risk Management Committee[226](index=226&type=chunk)[227](index=227&type=chunk) [Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - Based on an evaluation as of June 30, 2025, the Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective[233](index=233&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) The company does not anticipate any pending or threatened legal proceedings will have a material adverse effect on its consolidated financial statements - The company does not expect any pending legal proceedings to result in a material adverse effect on its financial statements[235](index=235&type=chunk) [Risk Factors](index=67&type=section&id=Item%201A.%20Risk%20Factors) There have been no material updates or additions to the risk factors previously disclosed in the company's Annual Report on Form 10-K for 2024 - No material changes to the risk factors disclosed in the 2024 Form 10-K have occurred[236](index=236&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares of its common stock during Q2 2025, with **2,261,130** shares remaining available for repurchase - No shares were repurchased during Q2 2025. The company has authorization to repurchase up to **2,261,130** additional shares under its current program[237](index=237&type=chunk) [Exhibits](index=69&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files
Northwest Bancshares: Still A Solid Income Name
Seeking Alpha· 2025-07-30 16:30
Group 1 - The core focus of Quad 7 Capital is to provide investment opportunities through their BAD BEAT Investing platform, emphasizing both long and short trades [1] - The team consists of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, aiming to educate investors on proficient trading [1] - Since May 2020, the company has maintained an average position of 95% long and 5% short, showcasing their strategic approach to market conditions [1] Group 2 - BAD BEAT Investing offers various benefits, including weekly well-researched trade ideas, access to multiple chat rooms, and daily summaries of key analyst upgrades and downgrades [2] - The platform also provides education on basic options trading and extensive trading tools to enhance investor knowledge and execution [2]
Northwest Bancshares(NWBI) - 2025 Q2 - Earnings Call Transcript
2025-07-30 13:30
Financial Data and Key Metrics Changes - The company reported GAAP net income of $33.7 million and earnings per diluted share of $0.26, compared to $0.24 in the same quarter of 2024, reflecting a 10% increase in earnings per share when adjusted for one-time merger-related expenses [8][9][13] - Total revenue for the second quarter was $150 million, representing a 53.5% increase year-over-year, although slightly down from $156 million in the previous quarter [14] - The net interest margin improved to 3.56%, up from an adjusted margin of 3.48% in the prior quarter [14] Business Line Data and Key Metrics Changes - Average commercial and industrial (C&I) loans increased by 19% compared to the same period last year, with average C&I loans growing by $49.1 million or 2.4% compared to the first quarter [10][16] - Non-interest income increased by $2.6 million or 9.1% quarter-over-quarter, driven by improvements in fee income [14][20] - Average loans grew by $72 million quarter-over-quarter, but were $120 million or about 1% lower than in 2024 [15][16] Market Data and Key Metrics Changes - Average deposits increased by $66 million or 0.5% quarter-over-quarter and $67 million or about 0.6% year-over-year [17] - The cost of deposits decreased by four basis points quarter-over-quarter, standing at 1.55%, which is competitive relative to peers [18] Company Strategy and Development Direction - The company is focused on optimizing operations and financial performance following the recent Pennswood acquisition, while also planning to open new financial centers in high-growth areas [7][11] - The strategy includes a shift towards commercial lending and maintaining a balanced approach between consumer and commercial portfolios [16][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a net interest margin of approximately 3.50% for the remainder of the year, with expectations of achieving full cost savings from the Pennswood acquisition by 2026 [25][27] - The company anticipates continued growth opportunities despite current macroeconomic uncertainties, particularly in the commercial lending space [55] Other Important Information - The company declared a quarterly dividend of $0.20 per share to shareholders of record as of August 8, 2025 [11] - The total equity consideration for the Pennswood acquisition was $230 million, which was $30 million less than initially disclosed [12] Q&A Session Summary Question: What are the expected cost savings from the Pennswood acquisition? - Management indicated that they expect to achieve about 40% cost savings from the transaction, with approximately 75% of that expected in 2025 and the remainder in 2026 [29][30] Question: What is the initial estimate of margin accretion from the acquisition? - Management stated they are still working through purchase accounting and could not provide updated margin guidance at this time [32][35] Question: How does the company feel about the adequacy of reserves for potential losses? - Management believes they are adequately reserved for losses and expects to see opportunities for credits to repay over the next six months [45] Question: What are the prospects for deposit growth through year-end? - Management feels confident about deposit growth, especially with the addition of new Pennswood customers [47] Question: Is there a change in strategy regarding home equity and consumer loans? - Management clarified that there is no change in strategy, but they are focusing on consumer lending opportunities as market conditions allow [51][53]
Northwest Bancshares(NWBI) - 2025 Q2 - Earnings Call Presentation
2025-07-30 12:30
Financial Performance - Northwest Bancshares' total assets reached $14.5 billion for the quarter ended June 30, 2025[6] - Diluted EPS was $0.26, with an adjusted (non-GAAP) EPS of $0.30[6] - Net interest margin (NIM) stood at 3.56%[6] - Revenue increased by 53.5% year-over-year (YoY)[18], driven by higher average loan yields and reduced deposit costs[16] Balance Sheet and Loan Portfolio - Total deposits amounted to $12.2 billion[6] - Total loans reached $11.3 billion[6] - Commercial C&I loan growth increased by 19% YoY[16] - Average loans grew by $72 million quarter-over-quarter (QoQ), with a shift towards commercial loans[19] Penns Woods Acquisition - The merger with Penns Woods successfully closed on July 25, 2025[12] - Equity consideration paid for the acquisition was $230.2 million[12] - The acquisition is expected to result in a 23.4% EPS accretion in 2026[12] - Anticipated cost savings from the merger are projected to be $13 million in 2026, representing 40% of Penns Woods' non-interest expense (NIE)[12]
Northwest Bancshares(NWBI) - 2025 Q2 - Quarterly Results
2025-07-29 20:12
[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) [Q2 2025 Performance Summary](index=1&type=section&id=Q2%202025%20Performance%20Summary) Northwest Bancshares reported Q2 2025 net income of **$34 million**, or **$0.26 per diluted share**, a significant increase year-over-year but a decrease from the prior quarter, while maintaining a **3.56%** net interest margin and declaring a **$0.20** quarterly dividend after completing the Penns Woods merger Q2 2025 Key Financial Results | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $34 million | $43 million | $5 million | | Diluted EPS | $0.26 | $0.34 | $0.04 | | Adjusted Net Income (non-GAAP) | $38 million | $44 million | N/A | | Adjusted Diluted EPS (non-GAAP) | $0.30 | $0.35 | N/A | | Net Interest Margin | 3.56% | 3.87% | 3.20% | - The Board of Directors declared a quarterly cash dividend of **$0.20 per share**, marking the **123rd consecutive quarterly dividend**, representing an annualized dividend yield of approximately **6.3%** as of June 30, 2025[4](index=4&type=chunk) - Strategic focus is on optimizing operations and financial performance following the successful completion and systems conversion of the Penns Woods merger, with the company continuing to evaluate acquisition opportunities while also expanding its footprint through new branch openings[2](index=2&type=chunk)[6](index=6&type=chunk) [Detailed Financial Analysis](index=3&type=section&id=Detailed%20Financial%20Analysis) [Balance Sheet Analysis](index=3&type=section&id=Balance%20Sheet%20Analysis) Average loans receivable saw a slight quarterly increase of **0.6%** but a decrease of **1.1%** year-over-year, driven by a strategic shift from personal banking to commercial portfolios, while average deposits grew modestly and average borrowed funds significantly decreased by **35.5%** from the prior year due to strategic pay-downs Average Balance Sheet Highlights (Q2 2025) | Dollars in thousands | Q2 2025 | Change vs. 1Q25 | Change vs. 2Q24 | | :--- | :--- | :--- | :--- | | Average loans receivable | $11,248,954 | 0.6% | (1.1)% | | Average deposits | $12,154,001 | 0.5% | 0.6% | | Average borrowed funds | $208,342 | (7.0)% | (35.5)% | - The decrease in average loans YoY was driven by a **$265 million** decline in the personal banking portfolio, with cash flows reinvested into the commercial portfolio, which grew by **$145 million**, and the commercial and industrial portfolio specifically grew by **$332 million**[11](index=11&type=chunk) [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased by **11.8%** year-over-year to **$119.4 million**, with the net interest margin expanding to **3.56%** from **3.20%**, primarily due to higher loan yields and lower deposit costs, despite a **6.6%** quarterly decrease influenced by a prior quarter's non-accrual loan interest recovery Net Interest Income and Margin Performance | Dollars in thousands | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net interest income | $119,444 | $127,818 | $106,841 | | Net interest margin | 3.56% | 3.87% | 3.20% | - The YoY increase in NII was driven by a **$5 million** increase in interest income from higher loan yields and an **$8 million** decrease in interest expense due to lower cost of deposits and reduced borrowings[12](index=12&type=chunk) - The QoQ decrease in NII was primarily caused by a **$9 million** drop in interest income, stemming from a large **$13.1 million** interest recovery on a non-accrual commercial loan in Q1 2025, and excluding this recovery, the prior quarter's net interest margin would have been **3.48%**[10](index=10&type=chunk) [Provision for Credit Losses](index=4&type=section&id=Provision%20for%20Credit%20Losses) The total provision for credit losses was **$8.7 million** for Q2 2025, a significant increase from the prior year, primarily driven by downgrades and individual assessments within the commercial real estate portfolio, leading to classified loans increasing substantially to **$518 million** or **4.57%** of total loans Provision for Credit Losses Expense | Dollars in thousands | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Provision for credit losses - loans | $11,456 | $8,256 | $2,169 | | Provision for credit losses - unfunded commitments | $(2,712) | $(345) | $(2,539) | | **Total provision for credit losses expense** | **$8,744** | **$7,911** | **$(370)** | - Classified loans rose to **$518 million** (**4.57%** of total loans) at June 30, 2025, up from **$279 million** (**2.49%** of total loans) at March 31, 2025, with this increase driven by a **$195 million** rise in classified commercial real estate loans[15](index=15&type=chunk) [Noninterest Income and Expense](index=4&type=section&id=Noninterest%20Income%20and%20Expense) Total noninterest income was **$30.9 million**, a significant increase from a loss of **$8.8 million** in Q2 2024 due to a prior-year investment securities sale loss, while noninterest expense increased **5.5%** year-over-year to **$97.5 million** driven by higher personnel and merger-related costs - Noninterest income increased by **$40 million** YoY, mainly because Q2 2024 included a **$39 million** loss on the sale of investment securities, and excluding this item, noninterest income was flat YoY[16](index=16&type=chunk) - Noninterest expense rose by **$5.1 million** YoY to **$97.5 million**, due to a **$2 million** increase in personnel expenses and a **$3 million** increase in non-personnel expenses, which included merger and restructuring costs[17](index=17&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Financial Condition](index=6&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) As of June 30, 2025, total assets stood at **$14.49 billion**, with net loans receivable at **$11.21 billion** and total deposits at **$12.20 billion**, contributing to a rise in total shareholders' equity to **$1.64 billion** and tangible book value per share to **$9.85** Key Balance Sheet Items (as of June 30, 2025) | Dollars in thousands | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $14,485,107 | $14,408,224 | $14,385,553 | | Loans receivable, net | $11,212,665 | $11,063,195 | $11,229,294 | | Total Deposits | $12,201,029 | $12,144,554 | $12,087,379 | | Total Shareholders' Equity | $1,642,068 | $1,596,856 | $1,556,598 | | Tangible book value per share* | $9.85 | $9.51 | $9.20 | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) For Q2 2025, the company generated **$119.4 million** in net interest income, resulting in **$33.7 million** net income, while for the six months ended June 30, 2025, net income was **$77.1 million**, more than double the **$33.9 million** earned in the same period of 2024 Income Statement Summary (Quarter ended June 30, 2025) | Dollars in thousands | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net interest income | $119,444 | $127,818 | $106,841 | | Total noninterest income/(loss) | $30,938 | $28,355 | $(8,849) | | Total noninterest expense | $97,540 | $91,737 | $92,420 | | Net income | $33,675 | $43,458 | $4,747 | | Diluted earnings per share | $0.26 | $0.34 | $0.04 | Income Statement Summary (Six months ended June 30) | Dollars in thousands | 2025 | 2024 | | :--- | :--- | :--- | | Net interest income | $247,262 | $210,079 | | Total noninterest income | $59,293 | $19,114 | | Net income | $77,133 | $33,910 | | Diluted earnings per share | $0.60 | $0.27 | [Non-GAAP Financial Measures Reconciliation](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [Reconciliation of Net Income and Key Ratios](index=9&type=section&id=Reconciliation%20of%20Net%20Income%20and%20Key%20Ratios) For Q2 2025, GAAP net income of **$33.7 million** was adjusted for **$6.2 million** in merger-related expenses, resulting in an adjusted net income of **$38.2 million** and an adjusted diluted EPS of **$0.30**, providing a clearer view of operating performance Reconciliation of Net Income to Adjusted Net Income (Q2 2025) | Dollars in thousands | Q2 2025 | | :--- | :--- | | Net income (GAAP) | $33,675 | | Add: merger, asset disposition and restructuring expense | $6,244 | | Less: tax benefit of non-GAAP adjustments | $(1,748) | | **Adjusted net income (non-GAAP)** | **$38,171** | [Supplementary Financial Information](index=11&type=section&id=Supplementary%20Financial%20Information) [Deposit and Capital Analysis](index=11&type=section&id=Deposit%20and%20Capital%20Analysis) As of June 30, 2025, uninsured deposits, excluding intercompany and collateralized accounts, were **$1.55 billion**, representing **12.7%** of total deposits, with the company's regulatory capital ratios remaining well above 'well capitalized' requirements, including a Common Equity Tier 1 (CET1) ratio of **12.84%** for the holding company - Uninsured deposits per the Call Report were **$3.27 billion** (**26.8%** of total deposits), but after excluding intercompany and collateralized accounts, the adjusted uninsured balance is **$1.55 billion**, or **12.7%** of total deposits[39](index=39&type=chunk) Regulatory Capital Ratios (June 30, 2025) | Ratio (Northwest Bancshares, Inc.) | Actual | Minimum Requirement | Well Capitalized | | :--- | :--- | :--- | :--- | | Total capital (to risk weighted assets) | 16.32% | 10.50% | 10.00% | | Tier 1 capital (to risk weighted assets) | 14.01% | 8.50% | 6.00% | | Common equity tier 1 capital | 12.84% | 7.00% | N/A | [Asset Quality Analysis](index=14&type=section&id=Asset%20Quality%20Analysis) Asset quality metrics showed some deterioration during the quarter, with nonperforming loans increasing to **0.91%** of total loans from **0.53%** in the prior quarter, driven by an increase in nonaccrual commercial real estate and commercial loans, and substandard loans nearly doubling [Nonperforming Assets (NPAs)](index=14&type=section&id=Nonperforming%20Assets%20%28NPAs%29) Nonperforming Assets Trend | Dollars in thousands | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total nonaccrual loans | $102,394 | $58,750 | $102,159 | | Nonperforming loans | $102,887 | $59,353 | $104,670 | | Nonperforming assets | $102,935 | $75,535 | $104,744 | | Nonperforming loans to total loans | 0.91% | 0.53% | 0.92% | [Loan Portfolio Credit Quality](index=15&type=section&id=Loan%20Portfolio%20Credit%20Quality) - Substandard loans increased significantly to **$518.2 million** as of June 30, 2025, up from **$279.1 million** at March 31, 2025, with the increase concentrated in the Commercial Banking segment, particularly in commercial real estate loans[51](index=51&type=chunk) [Allowance for Credit Losses (ACL)](index=17&type=section&id=Allowance%20for%20Credit%20Losses%20%28ACL%29) ACL Roll-Forward (Quarter ended June 30, 2025) | Dollars in thousands | Amount | | :--- | :--- | | Beginning balance | $122,809 | | Provision | $11,456 | | Total Charge-offs | $(7,907) | | Recoveries | $2,801 | | **Ending balance** | **$129,159** | - The allowance for credit losses to total loans stood at **1.14%** at the end of Q2 2025, up from **1.09%** in the prior quarter[49](index=49&type=chunk) [Average Balance Sheet and Net Interest Margin Analysis](index=18&type=section&id=Average%20Balance%20Sheet%20and%20Net%20Interest%20Margin%20Analysis) [Quarterly and YTD Average Balance Sheet](index=18&type=section&id=Quarterly%20and%20YTD%20Average%20Balance%20Sheet) The average yield on interest-earning assets for Q2 2025 was **5.11%** (FTE), down from Q1 2025 but up from Q2 2024, while the average cost of interest-bearing liabilities decreased to **2.09%** year-over-year, resulting in a net interest margin of **3.56%** for the quarter and **3.72%** for the first six months of 2025 Quarterly Net Interest Margin Analysis (FTE) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Avg. Yield on Earning Assets | 5.11% | 5.46% | 4.98% | | Avg. Cost of Interest-Bearing Liabilities | 2.09% | 2.15% | 2.40% | | Net Interest Spread | 3.02% | 3.31% | 2.58% | | Net Interest Margin | 3.56% | 3.87% | 3.20% | Six-Month Net Interest Margin Analysis (FTE) | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Avg. Yield on Earning Assets | 5.28% | 4.89% | | Avg. Cost of Interest-Bearing Liabilities | 2.12% | 2.34% | | Net Interest Spread | 3.16% | 2.55% | | Net Interest Margin | 3.72% | 3.15% |
Northwest Bancshares, Inc. Announces Second Quarter 2025 net income of $34 million, or $0.26 per diluted share
Prnewswire· 2025-07-29 20:05
Core Viewpoint - Northwest Bancshares, Inc. reported strong financial performance for the second quarter of 2025, with significant revenue growth and successful integration of the Penns Woods merger, despite a decrease in net income compared to the previous quarter [1][4][5]. Financial Performance - Total revenue increased by 54% year-over-year, with net interest income rising by 12% compared to the prior year quarter [1]. - Adjusted net income for 2Q25 was $38 million, or $0.30 per diluted share, a decrease from $44 million, or $0.35 per diluted share in the prior quarter [2]. - Net income for the quarter ended June 30, 2025, was $34 million, or $0.26 per diluted share, up from $5 million, or $0.04 per diluted share in the same quarter last year, but down from $43 million, or $0.34 per diluted share in the prior quarter [1][2][14]. Interest Income and Margin - Net interest income for 2Q25 was $119.4 million, down 6.6% from the previous quarter but up 11.8% from the same quarter last year [6][21]. - The net interest margin stood at 3.56%, a decrease from 3.87% in the previous quarter but an increase from 3.20% in the same quarter last year [6][21]. Loan and Deposit Growth - Commercial C&I lending showed strong momentum with a 19% growth over the last year [1]. - Average loans receivable decreased by $120 million from the previous year, primarily due to a decline in the personal banking portfolio, while the commercial banking portfolio grew by $145 million [7]. - Average deposits increased by $68 million year-over-year, driven by higher balances in money market and interest-bearing accounts [7]. Noninterest Income and Expenses - Noninterest income grew by 9% over the prior quarter, totaling $30.9 million, with notable increases in service charges and fees [11][21]. - Total noninterest expense increased to $97.5 million, reflecting higher personnel and non-personnel expenses due to merger-related costs [12][13]. Credit Quality - The provision for credit losses was $9 million, primarily due to downgrades in the commercial real estate portfolio [9]. - Classified loans increased to $518 million, representing 4.57% of total loans, up from 2.26% a year ago [10]. Dividends - The Board of Directors declared a quarterly cash dividend of $0.20 per share, marking the 123rd consecutive quarter of dividend payments, with an annualized yield of approximately 6.3% [3].
Northwest Bancshares, Inc. Completes Acquisition of Penns Woods Bancorp, Inc.
Prnewswire· 2025-07-28 11:30
Core Points - The merger between Northwest Bancshares, Inc. and Penns Woods Bancorp, Inc. has been completed as of July 25, 2025, enhancing Northwest's banking presence in Pennsylvania [1][2] - Richard A. Grafmyre, the CEO of Penns Woods, has been appointed to the Board of Directors of Northwest and Northwest Bank following the merger [2] - The merger adds 21 branch locations to Northwest, bringing the total to 151 financial centers across Pennsylvania, New York, Ohio, and Indiana [2][3] - The former Jersey Shore State Bank and Luzerne Bank locations have been rebranded to Northwest Bank after a successful customer and data conversion [3] Company Overview - Northwest Bancshares, Inc. is headquartered in Columbus, Ohio, and operates as a full-service financial institution offering a range of banking products and services [7] - The company was founded in 1896 and currently operates 151 full-service financial centers and eleven drive-up facilities [7] - Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market under the symbol NWBI [7]
What Makes Northwest Bancshares (NWBI) a Strong Momentum Stock: Buy Now?
ZACKS· 2025-07-10 17:06
Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Northwest Bancshares (NWBI) - NWBI currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance [3] Price Performance - Over the past week, NWBI shares increased by 5.14%, outperforming the Zacks Financial - Savings and Loan industry, which rose by 2.97% [5] - In a longer timeframe, NWBI's monthly price change is 7.84%, compared to the industry's 3.23% [5] - Over the last three months, NWBI shares have risen by 19.08%, and by 15.41% over the past year, while the S&P 500 has increased by 15.13% and 13.62%, respectively [6] Trading Volume - NWBI's average 20-day trading volume is 593,881 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, two earnings estimates for NWBI have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $1.17 to $1.24 [9] - For the next fiscal year, two estimates have also moved upwards without any downward revisions [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, NWBI is positioned as a promising investment opportunity with a Momentum Score of A [11]
Northwest Bancshares, Inc. Announces Second Quarter 2025 Earnings Call Details
Prnewswire· 2025-07-09 12:55
Core Points - Northwest Bancshares, Inc. will host a conference call to discuss its second quarter 2025 financial results on July 30, 2025, at 8:30 a.m. EDT [1] - Financial results will be released after market close on July 29, 2025 [1] Conference Call / Webcast Information - The live audio webcast and presentation slides will be available in the Investor Relations section of the company's website [2] - The public can register for the conference call through a provided link and will receive instructions for calendar event download and email reminders [2] Additional Information - Northwest Bancshares, Inc. is headquartered in Columbus, Ohio, and operates as the bank holding company for Northwest Bank, which was founded in 1896 [4] - The bank offers a full range of business and personal banking products, employee benefits, and wealth management services, with 131 full-service financial centers and eleven drive-up facilities across Pennsylvania, New York, Ohio, and Indiana [4] - The company's common stock is listed on the NASDAQ Global Select Market under the ticker "NWBI" [4]