Core Viewpoint - Northwest Bancshares (NWBI) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Investor Sentiment - The upgrade reflects an improvement in Northwest Bancshares' underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. - Over the past three months, the Zacks Consensus Estimate for Northwest Bancshares has increased by 15%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, highlighting their potential for market-beating returns [9][10]. - Stocks rated Zacks Rank 1 have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of the rating system [7].

Leadership Transition - Northwest Bancshares, Inc. announced a change in its board of directors as part of a leadership transition, with Timothy B. Fannin stepping down as Board Chair and being succeeded by Vice Chair Timothy M. Hunter [1][2] - Timothy B. Fannin has been with the board since 2013 and served as Non-Executive Chairman since 2022, while Timothy M. Hunter joined the board in 2015 and was appointed Vice Chair in 2023 [2] Company Progress and Strategy - The company is on track to become a Top 100 US bank by assets following its merger with Penns Woods, expected to close in late July [3] - Fannin highlighted the company's significant progress on its strategic growth plan, including the largest acquisition in its history, and emphasized the importance of transitioning board leadership at this time [3] - Hunter expressed his commitment to continue the company's progress and capitalize on opportunities for sustainable, responsible, and profitable growth [3] Executive Experience - Timothy M. Hunter has extensive business experience, having served as President and CEO of McInnes Rolled Rings from 2003 to 2024, and has held various positions on business and philanthropic boards [3] - Hunter is a CPA and has a background with Ernst & Young, holding a bachelor's degree in accounting from Villanova University [3] Company Overview - Northwest Bancshares, Inc. is headquartered in Columbus, Ohio, and is the bank holding company for Northwest Bank, which was founded in 1896 [4] - The bank offers a complete line of business and personal banking products, as well as employee benefits and wealth management services, operating 130 full-service financial centers and eleven drive-up facilities across Pennsylvania, New York, Ohio, and Indiana [4]

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section details the company's unaudited consolidated financial statements and management's analysis of financial performance [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, income, and cash flow statements, reflecting financial growth [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to $14.45 billion, driven by growth in cash and net loans, with deposits and shareholders' equity also rising Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $14,453,727 | $14,408,224 | $45,503 | 0.3% | | Loans receivable, net | $11,093,636 | $11,063,195 | $30,441 | 0.3% | | Total Deposits | $12,174,156 | $12,144,554 | $29,602 | 0.2% | | Total Liabilities | $12,824,772 | $12,811,368 | $13,404 | 0.1% | | Total Shareholders' Equity | $1,628,955 | $1,596,856 | $32,099 | 2.0% | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net income significantly increased to $43.5 million for Q1 2025, primarily driven by a substantial rise in net interest income Quarterly Income Statement Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $127,818 | $103,238 | $24,580 | 23.8% | | Provision for credit losses - loans | $8,256 | $4,234 | $4,022 | 95.0% | | Noninterest Income | $28,355 | $27,963 | $392 | 1.4% | | Noninterest Expense | $91,737 | $90,024 | $1,713 | 1.9% | | Net Income | $43,458 | $29,163 | $14,295 | 49.0% | | Diluted EPS | $0.34 | $0.23 | $0.11 | 47.8% | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased, while investing activities used less cash, resulting in higher cash and equivalents Cash Flow Summary (in thousands) | Activity | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $107,612 | $70,701 | | Net cash used in investing activities | ($45,936) | ($143,587) | | Net cash provided by financing activities | $3,149 | $69,945 | | **Net increase/(decrease) in cash** | **$64,825** | **($2,941)** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes disclose accounting policies, financial statement line items, and significant subsequent events, including merger approval - The company's marketable securities portfolio, totaling **$1.9 billion**, consists of available-for-sale (**$1.15 billion**) and held-to-maturity (**$0.74 billion**) securities. Unrealized losses on these securities are primarily attributed to changes in the interest rate environment, not credit quality deterioration[21](index=21&type=chunk)[22](index=22&type=chunk)[24](index=24&type=chunk) - The total loan portfolio was **$11.2 billion**, with Personal Banking loans at **$6.3 billion** and Commercial Banking loans at **$4.9 billion**. The allowance for credit losses (ACL) stood at **$122.8 million** as of March 31, 2025[28](index=28&type=chunk) - The company utilizes various derivative instruments, primarily interest rate swaps, to manage interest rate risk and for customer accommodation. As of March 31, 2025, the notional amount of derivatives designated as hedging instruments was **$175 million**[101](index=101&type=chunk)[102](index=102&type=chunk)[108](index=108&type=chunk) - All regulatory and shareholder approvals for the merger with Penns Woods Bancorp, Inc. have been received. The merger is expected to close in the **third quarter of 2025**[120](index=120&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and operating results, highlighting net income growth, asset expansion, and strong capital adequacy [Comparison of Financial Condition](index=45&type=section&id=Comparison%20of%20Financial%20Condition) Total assets increased to **$14.5 billion**, driven by growth in cash and gross loans, with deposits and equity also rising - Total assets grew by **$46 million** to **$14.5 billion**, primarily from increased cash and loans[132](index=132&type=chunk) - Gross loans increased by **$36 million**, with the commercial and industrial (C&I) portfolio growing by **$72 million (4%)** since December 31, 2024, reflecting success in new commercial lending verticals[135](index=135&type=chunk) - Total deposits rose by **$30 million**, with a shift from time deposits (down **$81 million**) to money market (up **$117 million**) and savings accounts (up **$51 million**)[137](index=137&type=chunk) - As of March 31, 2025, uninsured deposits, excluding intercompany and collateralized accounts, were **$1.54 billion**, representing **12.7%** of total deposits[140](index=140&type=chunk) [Regulatory Capital](index=46&type=section&id=Regulatory%20Capital) The company and Northwest Bank continue to exceed all regulatory capital requirements, maintaining a 'well-capitalized' status Regulatory Capital Ratios (Company) | Ratio | March 31, 2025 | Minimum Requirement (with buffer) | Well Capitalized Requirement | | :--- | :--- | :--- | :--- | | CET1 Capital Ratio | 12.94% | 7.00% | N/A | | Tier 1 Capital Ratio | 14.13% | 8.50% | 6.00% | | Total Capital Ratio | 16.46% | 10.50% | 10.00% | | Tier 1 Leverage Ratio | 10.51% | 4.00% | N/A | [Nonperforming Assets](index=48&type=section&id=Nonperforming%20Assets) Total nonperforming assets decreased to **$75.5 million**, with nonaccrual loans also declining, indicating improved asset quality Nonperforming Assets (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total nonperforming loans | $59,353 | $62,057 | | Other nonperforming assets | $16,102 | $16,102 | | **Total nonperforming assets** | **$75,535** | **$78,194** | | Nonaccrual loans to total loans | 0.52% | 0.55% | [Comparison of Operating Results for Q1 2025 and Q1 2024](index=51&type=section&id=Comparison%20of%20Operating%20Results) Net income for Q1 2025 significantly increased by **49%**, driven by a substantial rise in net interest income and improved return on equity - Net income increased by **$14 million (49%)** YoY, with diluted EPS rising from **$0.23** to **$0.34**[168](index=168&type=chunk) - Net interest income (FTE) increased by **$25 million**, and net interest margin (FTE) expanded by **77 basis points** to **3.87%**, driven by higher earning asset yields and an interest recovery of **$13.1 million** on a non-accrual loan payoff[172](index=172&type=chunk)[174](index=174&type=chunk) - The provision for credit losses increased by **$4 million** from Q1 2024, reflecting growth in the commercial loan portfolio and changes in economic forecasts[186](index=186&type=chunk) - Noninterest expense rose by **$2 million (2%)**, mainly due to a **$3 million** increase in compensation and benefits, partially offset by a **$1 million** decrease in professional services[197](index=197&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk through simulations, projecting the impact of rate changes on net income and equity value Simulated Impact of Interest Rate Shifts over 12 Months | Parallel Shift in Interest Rates | Projected % Change in Net Income | Projected % Change in Market Value of Equity | | :--- | :--- | :--- | | +300 bps | (7.9)% | (14.8)% | | +200 bps | (4.9)% | (9.7)% | | +100 bps | (2.0)% | (4.6)% | | -100 bps | (2.5)% | 2.7% | | -200 bps | (14.4)% | 2.1% | | -300 bps | (20.6)% | 2.6% | [Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[209](index=209&type=chunk) - No **material changes** were made to the internal controls over financial reporting during the quarter[210](index=210&type=chunk) [PART II OTHER INFORMATION](index=61&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information, including legal proceedings, risk factors, equity sales, and other disclosures [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company does not anticipate any material adverse effects from pending or threatened legal proceedings on its financial statements - The company does not expect any pending legal proceedings to have a **material adverse effect** on its financial statements[211](index=211&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) No material updates or additions to the previously disclosed risk factors were reported for the quarter - No **material changes** to risk factors were reported for the quarter[212](index=212&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased under the company's stock repurchase program during the quarter, with shares remaining available - No shares of common stock were repurchased during the quarter ended March 31, 2025[213](index=213&type=chunk) - There are **2,261,130 shares** remaining that can be purchased under the current stock repurchase program, which has no expiration date[213](index=213&type=chunk) [Other Information](index=62&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading arrangements during the first quarter of 2025 - No directors or officers adopted or terminated any **Rule 10b5-1 trading arrangements** during the three months ended March 31, 2025[216](index=216&type=chunk) [Exhibits](index=63&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

Core Viewpoint - Northwest Bancshares (NWBI) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook that may continue to drive stock performance [1][10]. Estimate Revisions - The upward trend in earnings estimate revisions reflects increasing analyst optimism regarding Northwest Bancshares' earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, the earnings estimate is $0.28 per share, representing a 3.7% increase from the previous year, with a notable 11.84% rise in consensus estimates over the last 30 days [6]. - For the full year, the earnings estimate stands at $1.17 per share, marking a 12.5% increase from the prior year, with a consensus estimate increase of 8.72% due to three upward revisions and no negative changes [7][8]. Zacks Rank - Northwest Bancshares currently holds a Zacks Rank 2 (Buy), supported by favorable estimate revisions, which historically correlate with strong stock performance [9]. - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500, indicating a positive investment outlook for Northwest Bancshares [9]. Stock Performance - The stock has experienced a 7.7% gain over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects, suggesting it may be a timely addition to investment portfolios [10].

Group 1 - The Q1 regional bank earnings are being closely monitored as they provide insights into local economies [1] - Key metrics indicate little cause for concern despite market selloff [1] - The company has identified areas for investment during the market correction [1] Group 2 - A money-back guarantee is offered to ensure customer satisfaction with the service [3] - The company promotes a proven track record of successful investment ideas [3]

Financial Data and Key Metrics Changes - The company reported revenue of $156 million and net income of $43 million, an increase of $14 million or 48% compared to the same quarter last year, with earnings per diluted share rising to $0.34 from $0.23 [5][6] - The net interest margin improved by 45 basis points from the prior quarter to 3.87%, marking the fourth consecutive quarter of margin improvement [11][12] - Non-interest income decreased by $11.7 million due to prior quarter transactions, but overall revenue grew by 19% compared to Q1 2024 [12][16] Business Line Data and Key Metrics Changes - Average commercial loans increased by $121 million or 6.2% compared to the fourth quarter, reflecting a strategic shift towards commercial lending [13] - The consumer non-brokered average deposits increased by $68 million quarter over quarter, while brokered deposits decreased by $8 million [14] - The loan yields increased by 44 basis points to 6%, benefiting from an interest recovery [13] Market Data and Key Metrics Changes - Average total deposits increased by $60 million quarter over quarter and grew by 1.7% or $200 million compared to Q1 2024 [14] - The cost of deposits decreased by 9 basis points quarter over quarter, with the current cost standing at 1.59% [14][15] - The overall coverage ratio is at 1.09%, reflecting prudent risk management amid market concerns [19] Company Strategy and Development Direction - The company continues to focus on sustainable, responsible, and profitable growth, with a strategic shift towards commercial lending and enhancing retail banking [6][7] - Integration activities for the merger with Pennswoods Bancorp are underway, expected to close by late July, which will position the company among the top 100 banks in the U.S. by asset size [8][9] - The company is also exploring de novo branch opportunities, particularly in Columbus and Indianapolis [7] Management's Comments on Operating Environment and Future Outlook - The current operating environment is characterized by significant market volatility and economic uncertainty, but the company remains focused on managing controllable factors [10][11] - The company expects to maintain its margin performance at or above the high end of its range, depending on future Fed rate cuts [22] - Loan growth will depend on the broader economic environment, which remains unpredictable [22] Other Important Information - The company declared a quarterly dividend of $0.20 per share to shareholders of record as of May 8, 2025 [6] - Non-interest expense declined by 3.8% compared to the prior quarter, driven by disciplined expense management [12][18] Q&A Session Summary Question: Margin guidance and future expectations - Management indicated a core margin of 3.48% and expects to be at the high end of the range, with potential impacts from future rate cuts [30] Question: Deposit growth drivers - The company is transitioning from CDs to more liquid products, with new money market rates around 3.75% [34][38] Question: Credit trends and tariff impacts - Management noted minimal current impact from tariffs, with exposure to manufacturing, transportation, and hospitality sectors being monitored [45] Question: Commercial loan build-out and market share - The company continues to take share in newer verticals and has seen stronger pipelines compared to the previous year [46][54] Question: Competitive landscape and yield trends - New commercial loan yields are at 7.26%, with roll-off yields at 6.76%, indicating competitive pressure [61] Question: Future M&A activity - Management remains open to future M&A opportunities but is currently focused on internal efficiencies and execution [81]

First Quarter 2025 Earnings Conference Call April 29, 2025 Forward-looking Statements and Additional Information The information contained in this presentation may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words "believe," "anticipate," "estimate," "expect," "project," "target," "goal" and similar expressions are intended to identify forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the ...

Northwest Bancshares, Inc. (NASDAQ:NWBI) Q1 2025 Earnings Conference Call April 29, 2025 9:00 AM ET Company Participants Michael Perry - Managing Director, Corporate Strategy and Development and Investor Relations Louis Torchio - President and CEO Doug Schosser - Chief Financial Officer Thomas Creal - Chief Credit Officer Sean Morrow - Treasurer Conference Call Participants Tim Switzer - KBW Daniel Tamayo - Raymond James Matthew Breese - Stephens, Inc. Manuel Navas - D. A. Davidson Operator Thank you for st ...

Financial Performance - The company reported revenue of $156 million and net income of $43 million, marking a 48% increase in net income compared to the same quarter last year [5][11] - Earnings per diluted share increased to $0.34 from $0.23 in the first quarter of 2024 [5] - The net interest margin expanded by 45 basis points to 3.87%, attributed to lower cost of funds and increased asset yields [10][11] - Non-interest income decreased by $11.7 million due to prior quarter transactions but showed a 19% increase year-over-year [11][15] Business Line Performance - Average commercial loans increased by $121 million or 6.2% compared to the previous quarter, reflecting a strategic shift towards commercial lending [12] - The consumer loan segment saw modest growth, capitalizing on stronger demand for indirect loans [12] - The commercial real estate (CRE) portfolio declined by 3.5%, while residential mortgage and home equity portfolios decreased by 1.9% and 1.3%, respectively [13] Market Data - Average total deposits increased by $60 million quarter-over-quarter, with consumer non-brokered deposits rising by $68 million [13] - The cost of deposits decreased by nine basis points to 1.59%, maintaining a competitive position relative to peers [14] Company Strategy and Industry Competition - The company is focused on sustainable, responsible, and profitable growth, with a renewed emphasis on enhancing its retail banking franchise [6][7] - A merger with Pennswoods Bancorp is underway, expected to close by late July, which will position the company among the top 100 banks in the U.S. by asset size [8][9] - The company is actively pursuing de novo branch opportunities, particularly in Columbus and Indianapolis [7] Management Commentary on Operating Environment and Future Outlook - The current operating environment is characterized by significant market volatility and economic uncertainty, but the company remains focused on managing controllable factors [9][10] - The company expects to maintain its margin performance and is cautious about loan growth due to unpredictable economic conditions [20][21] Other Important Information - The adjusted efficiency ratio improved to 57.7%, reflecting disciplined expense management [16] - The company has a stable credit risk profile, with non-performing loans and assets at five-quarter lows [18] Q&A Session Summary Question: Margin guidance and economic outlook - Management indicated a core margin of 3.48% and expects to be at the high end of the range, with potential impacts from future Fed rate cuts [27][28] Question: Deposit growth drivers - The company is transitioning from CDs to more liquid products, with new money market rates around 3.75% [30][32] Question: Credit trends and industry exposure - Management noted potential impacts from tariffs on industries like manufacturing and transportation, with aggregate exposure at about 8% of the loan portfolio [42][43] Question: Commercial loan build-out - The company continues to take share in newer verticals and has seen stronger pipelines compared to the previous year [44][51] Question: Impact of Pennswoods acquisition on financial metrics - Management refrained from providing specific guidance on tangible book value dilution or purchase accounting due to market volatility [40][72] Question: Future M&A activity - The company remains open to future acquisitions but is currently focused on internal efficiencies and execution due to market conditions [76][78]

For the quarter ended March 2025, Northwest Bancshares (NWBI) reported revenue of $156.17 million, up 19% over the same period last year. EPS came in at $0.35, compared to $0.23 in the year-ago quarter.The reported revenue represents a surprise of +8.88% over the Zacks Consensus Estimate of $143.43 million. With the consensus EPS estimate being $0.25, the EPS surprise was +40.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to dete ...