Financial Data and Key Metrics Changes - Total assets reached $16.4 billion, total deposits were $13.7 billion, and total loans amounted to $12.9 billion [7] - Revenue for the third quarter was a record $168 million, reflecting over 20% year-over-year growth [7][11] - Net interest margin improved by nine basis points quarter-over-quarter to 3.65% [7][10] - GAAP EPS for the nine months ended September 30, 2025, increased by $0.08 or 15%, while adjusted EPS rose by $0.16 or 21% [8] Business Line Data and Key Metrics Changes - Commercial and industrial loan growth exceeded 25% year-over-year [7] - Non-interest income increased by $1.3 million or 4% quarter-over-quarter, driven by service charges [11][19] - Adjusted pre-tax, pre-provision net revenue rose to almost $66 million, an 11.5% increase quarter-over-quarter [12] Market Data and Key Metrics Changes - The company has over 150 financial centers across Pennsylvania, New York, Ohio, and Indiana, with plans to open three new centers in the Columbus market [4][5] - The company was named a top 50 SBA lender nationally by volume [7] Company Strategy and Development Direction - The merger with Penns Woods Bancorp was completed, enhancing balance sheet scale and expected to achieve full cost savings by the second quarter of 2026 [3][25] - The company is focusing on organic growth and de novo branching in high-growth markets, particularly Columbus and Indianapolis [5][54] - Management emphasized maintaining tight cost controls and risk management discipline while pursuing sustainable growth [10][88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining net interest margin levels in the mid-360s and expects to see continued growth in loan pipelines [24] - The company is managing credit risk tightly, with no direct exposure to companies with recent credit issues [8][22] - Future guidance for non-interest income is expected to be between $32 million to $33 million for the fourth quarter [24] Other Important Information - The company declared a quarterly dividend of $0.20 per share, representing an annualized yield of approximately 6.5% [9] - The liquidity position is strong, with available sources covering approximately 250% of uninsured deposits [14] Q&A Session Summary Question: Loan growth expectations and impact of new branches - Management indicated that while the acquisition had a significant impact on loan growth, they expect to hold the balance sheet stable and look for growth opportunities in the fourth quarter [30][31] Question: Expense management and future guidance - Management aims to manage positive operating leverage while investing for growth, with expectations of holding expenses at current levels [34][36] Question: Capital management and targets - The company is comfortable with its capital levels and will consider opportunities for buybacks or acquisitions as they arise [43] Question: Trends in the consumer portfolio and deposit accounts - Management noted elevated delinquencies due to administrative issues from the acquisition but remains comfortable with the overall consumer exposure [50][51] Question: Scaling the bank and future growth strategies - The focus is on maximizing integration and efficiency from the Penns Woods merger while considering both organic growth and M&A opportunities [52][54] Question: Funding loan growth and securities portfolio - Management expressed confidence in their ability to fund loan growth through deposits and securities, with a flexible approach to managing their funding mix [60][64]

Financial Data and Key Metrics Changes - Total assets reached $16.4 billion, total deposits were $13.7 billion, and total loans amounted to $12.9 billion, reflecting significant growth [7][11] - Revenue for the third quarter was a record $168 million, representing over 20% year-over-year growth [7][11] - Net interest margin improved by nine basis points quarter-over-quarter to 3.65% [7][11] - GAAP EPS increased by $0.08 or 15% for the nine months ended September 30, 2025, while adjusted EPS rose by $0.16 or 21% for the same period [8][11] Business Line Data and Key Metrics Changes - Commercial and industrial loan growth exceeded 25% year-over-year, with strong progress in specialty verticals and SBA lending [7][11] - Non-interest income increased by $1.3 million or 4% quarter-over-quarter, driven primarily by service charges [11][19] - Adjusted pre-tax, pre-provision net revenue was nearly $66 million, an 11.5% increase quarter-over-quarter [12] Market Data and Key Metrics Changes - The company has over 150 financial centers across Pennsylvania, New York, Ohio, and Indiana, with plans to open additional centers in high-growth markets [4][5] - The company was named a top 50 SBA lender nationally by volume, indicating strong market positioning [7] Company Strategy and Development Direction - The merger with Penns Woods Bancorp was completed, enhancing the company's scale and operational efficiency [3][13] - The company is focused on sustainable, responsible, and profitable growth, with plans to open new financial centers in key locations [4][5][10] - The management team is actively recruiting for leadership roles to support expansion and enhance service offerings [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining net interest margin levels in the mid-360s and anticipates continued growth in loan portfolios [24] - The company is managing credit risk tightly, with no direct exposure to companies facing significant credit issues [8][22] - Future guidance for non-interest income and expenses was provided, indicating stable expectations for the upcoming quarters [24][25] Other Important Information - The company declared a quarterly dividend of $0.20 per share, representing an annualized yield of approximately 6.5% [9] - The integration of the Penns Woods acquisition is progressing well, with expected cost savings to be fully realized by the second quarter of 2026 [25][86] Q&A Session Summary Question: Loan growth expectations and impact of new branches - Management indicated that loan growth is expected to stabilize, with opportunities for growth in the fourth quarter and beyond, particularly from new branches [30][31][32] Question: Expense management and future guidance - Management emphasized a focus on positive operating leverage while continuing to invest for growth, with expectations for expenses to remain stable [34][35][36] Question: Capital management post-acquisition - Management expressed comfort with current capital levels, indicating a preference for maintaining a strong capital base while exploring growth opportunities [43][44] Question: Consumer portfolio trends and deposit activity - Management noted elevated delinquencies due to administrative issues from the acquisition but remains confident in the overall health of the consumer portfolio [50][51] Question: Scaling the bank and future growth strategies - Management is focused on maximizing integration and efficiency from the Penns Woods merger while considering both organic growth and M&A opportunities for future scaling [52][54] Question: Funding loan growth and deposit strategies - Management indicated strong funding capacity for loan growth, with expectations for deposit growth from new branches and existing customer relationships [61][62] Question: Overall loan yields and competitive landscape - Management reported that overall loan yields are in the low sevens, with expectations for some pressure on yields due to competitive market conditions [78][79]

Financial Data and Key Metrics Changes - Total assets reached $16.4 billion, total deposits were $13.7 billion, and total loans amounted to $12.9 billion [6][10] - Revenue for the third quarter was a record $168 million, reflecting over 20% year-over-year growth [6][10] - Net interest margin improved by nine basis points quarter-over-quarter to 3.65% [6][10] - GAAP EPS for the nine months ended September 30, 2025, increased by $0.08 or 15%, while adjusted EPS rose by $0.16 or 21% [7][10] Business Line Data and Key Metrics Changes - Commercial and industrial loan growth exceeded 25% year-over-year [6] - Non-interest income increased by $1.3 million or 4% quarter-over-quarter, driven by service charges [10][18] - Adjusted pre-tax, pre-provision net revenue rose to almost $66 million, an 11.5% increase quarter-over-quarter [10] Market Data and Key Metrics Changes - The company has over 150 financial centers across Pennsylvania, New York, Ohio, and Indiana, with plans to open three new centers in the Columbus market [4][5] - The company was named a top 50 SBA lender nationally by volume [6] Company Strategy and Development Direction - The merger with Penns Woods Bancorp was completed, enhancing balance sheet scale and expected to achieve full cost savings by the second quarter of 2026 [3][24] - The company is focusing on organic growth through de novo branches and potential M&A opportunities in high-growth markets [45][46] - The strategy includes maintaining tight cost controls and risk management discipline while investing in talent for future growth [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining net interest margin levels in the mid-360s and reaffirmed guidance for the fourth quarter [23] - The company is managing criticized and classified assets, which may impact loan growth but is expected to improve over time [30][39] - Management noted no direct exposure to companies with recent credit issues and emphasized strong risk management practices [7][21] Other Important Information - The company declared a quarterly dividend of $0.20 per share, representing an annualized yield of approximately 6.5% [8] - The liquidity position is strong, with sources covering approximately 250% of uninsured deposits [12] Q&A Session Summary Question: Loan growth expectations and impact of new branches - Management indicated that while the acquisition had a significant impact on loan growth, they expect to hold the balance sheet stable and look for growth opportunities in the fourth quarter [26][27] Question: Expense management and future guidance - Management aims to maintain positive operating leverage while investing for growth, with no significant increase in expenses expected from current levels [31][32] Question: Capital management post-acquisition - The company is comfortable with its capital levels and will consider opportunities for buybacks or acquisitions while maintaining a strong capital base [37] Question: Trends in consumer portfolio and deposit activity - Management noted elevated delinquencies due to administrative issues from the acquisition but remains comfortable with the overall consumer exposure [43][44] Question: Scaling the bank and future growth strategies - The focus is on maximizing integration and efficiency from the Penns Woods merger while pursuing organic growth and potential M&A opportunities [45][46]

Financial Performance - The company's total assets reached $164 billion in 3Q25[9], with total deposits of $137 billion and total loans of $129 billion[6] - Total revenue for 3Q25 was a record $1681 million, a 208% year-over-year increase[9] - Net interest income increased by 222% year-over-year[9], reaching $1360 million in 3Q25, a 139% increase QoQ[12] - Diluted EPS was $002, while adjusted diluted EPS was $029[6]; Year-to-date EPS growth was 15% (GAAP) and 21% (Adjusted)[9] - The net interest margin improved to 365%, benefiting from higher average loan yields and purchase accounting accretion[13] Merger and Acquisition - Successfully completed the merger with Penns Woods on July 25, 2025, adding balance sheet scale with $164 billion in assets, $129 billion in loans, and $137 billion in deposits[19] - Total consideration paid for Penns Woods was $2338 million[18] - The merger is expected to achieve 234% EPS accretion in 2026[18] - Loan marks from the Penns Woods acquisition were $776 million, and core deposit intangibles were $480 million[18] Loan and Deposit Portfolio - Average loans grew by $132 billion QoQ, with commercial loans increasing by $177 million, or 84% QoQ and $460 million, or 253% YoY[30] - Average total deposits grew by $114 billion QoQ[37] - Cost of deposits remained flat at 155%[37] Outlook - The company expects to maintain a net interest margin in the mid-360s bps level in 4Q25, including projected contractual purchase accounting loan accretion of $19 million[89] - Noninterest income is expected to be in the range of $32 million to $33 million in 4Q25[89] - Noninterest expense is expected to be in the range of $102 million to $104 million in 4Q25[89]

Core Insights - Northwest Bancshares (NWBI) reported a revenue of $168.17 million for the quarter ended September 2025, reflecting a year-over-year increase of 20.9% [1] - The earnings per share (EPS) for the quarter was $0.29, up from $0.26 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $167.1 million by 0.64%, while the EPS met the consensus estimate [1] Financial Metrics - Efficiency Ratio stood at 79.4%, significantly higher than the average estimate of 65% based on three analysts [4] - Net interest margin was reported at 3.7%, slightly above the average estimate of 3.5% based on three analysts [4] - Net charge-offs to average loans, annualized, were at 0.3%, matching the average estimate based on two analysts [4] - Average balance of total interest-earning assets was $14.87 billion, compared to the average estimate of $14.76 billion based on two analysts [4] - Total noninterest income was $32.2 million, slightly below the average estimate of $32.47 million based on three analysts [4] - Net Interest Income (FTE) was reported at $136.94 million, exceeding the average estimate of $135.5 million based on two analysts [4] - Mortgage banking income was $1 million, below the average estimate of $1.1 million based on two analysts [4] Stock Performance - Shares of Northwest Bancshares have returned +0.4% over the past month, compared to a +2.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - BAD BEAT Investing, led by Quad 7 Capital, is a team of 7 analysts with nearly 12 years of experience in identifying investment opportunities [1] - The firm is recognized for its February 2020 recommendation to sell everything and go short, maintaining an average position of 95% long and 5% short since May 2020 [1] - The company emphasizes teaching investors to become proficient traders through a structured playbook, focusing on short- and medium-term investments, income generation, special situations, and momentum trades [1] Company Overview - Quad 7 Capital has expertise in various fields including business, policy, economics, mathematics, game theory, and sciences [1] - The firm shares both long and short trades and invests personally in equities discussed within their investing group [1] - The goal of BAD BEAT Investing is to provide in-depth, high-quality research with clear entry and exit targets to save investors time [1] Benefits of BAD BEAT Investing - Investors can learn to understand market dynamics and execute well-researched trade ideas weekly [2] - The service includes access to 4 chat rooms and daily summaries of key analyst upgrades and downgrades [2] - Participants can also learn basic options trading and utilize extensive trading tools [2]

Core Insights - Quad 7 Capital is a team of 7 analysts with nearly 12 years of experience in identifying investment opportunities [1] - The firm is recognized for its February 2020 recommendation to sell everything and go short, maintaining an average position of 95% long and 5% short since May 2020 [1] - The company emphasizes teaching investors to become proficient traders through a structured playbook, focusing on short- and medium-term investments, income generation, special situations, and momentum trades [1] Company Overview - Quad 7 Capital operates under the BAD BEAT Investing brand, which is known for its in-depth, high-quality research and clear entry and exit targets [1] - The team possesses expertise in various fields including business, policy, economics, mathematics, game theory, and the sciences [1] - The firm engages in both long and short trades, investing personally in equities discussed within their investing group [1] Investment Approach - BAD BEAT Investing provides weekly well-researched trade ideas and utilizes four chat rooms for communication [2] - The service includes daily complimentary summaries of key analyst upgrades and downgrades, as well as education on basic options trading [2] - Extensive trading tools are available to enhance the trading experience for investors [2]

Financial Performance - GAAP net income for Q3 2025 was $3 million, or $0.02 per diluted share, a decrease of $31 million from the prior quarter and the same quarter last year [2]. - Adjusted net income (non-GAAP) for Q3 2025 was $41 million, or $0.29 per diluted share, an increase of $3 million from the prior quarter, driven by a $17 million increase in net interest income [3]. - Total revenue reached a record $168 million, representing a 21% growth over the prior year quarter [2]. - Net income for the quarter was $3,167,000, a significant decline from $33,618,000 in the same quarter of 2024, representing a decrease of 90.6% [26]. - Basic and diluted earnings per share for the quarter were both $0.02, down from $0.26 in the same quarter of 2024 [26]. - The annualized return on average equity dropped to 0.69% for the quarter, compared to 8.50% in the same quarter of 2024 [26]. - Total shareholders' equity increased to $1,859,344 thousand as of September 30, 2025, compared to $1,596,856 thousand in the previous quarter [33]. - Net income for the nine months ended September 30, 2025, was $80,300 thousand, with an annualized return on average tangible common equity of 0.90% for the quarter ended September 30, 2025 [36]. Asset and Loan Growth - Average loans receivable increased to $12.57 billion, up 11.7% from Q2 2025 and 12.0% from Q3 2024 [7]. - Total loans receivable rose to $12.94 billion, up 14.7% from $11.29 billion in the same period last year [24]. - Total loans reached $12,940,933 thousand as of September 30, 2025, compared to $11,341,824 thousand a year earlier, marking an increase of 14.1% [50]. - Total assets increased to $16.38 billion from $14.35 billion a year earlier, representing a growth of 14.1% [24]. - Total assets grew to $15,942,440 million, an increase from $14,468,197 million in the previous quarter [58]. Interest Income and Margin - Net interest income for Q3 2025 was $135.97 million, a 13.8% increase from Q2 2025 and a 22.2% increase from Q3 2024 [8]. - Total interest income for the quarter ended September 30, 2025, was $194,678,000, an increase from $171,381,000 in the same quarter of 2024, representing a year-over-year growth of 13.5% [26]. - Net interest income after provision for credit losses was $104,769,000 for the quarter, compared to $106,427,000 in the same quarter of 2024, reflecting a decrease of 1.6% [26]. - The net interest margin improved to 3.65%, up from 3.56% in Q2 2025 and 3.33% in Q3 2024 [9]. - The average yield on loans receivable increased to 5.63% for the quarter ended September 30, 2025, compared to 5.55% in the previous quarter [58]. Credit Quality and Loss Provisions - Total provision for credit losses was $31 million, primarily due to a Day 1 initial provision from the Penns Woods acquisition [11]. - Provision for credit losses on loans increased significantly to $31,394,000 in the September 2025 quarter, up from $5,727,000 in the same quarter of 2024 [26]. - The allowance for credit losses was $157.4 million, reflecting an increase from $125.8 million year-over-year [24]. - The allowance for credit losses to total loans increased to 1.22% as of September 30, 2025, compared to 1.14% in the previous quarter [48]. - Nonperforming loans to total loans ratio rose to 1.00% from 0.91% in the previous quarter, indicating a deterioration in loan quality [48]. Expenses and Efficiency - Noninterest expense increased to $133.50 million, a 36.9% increase from Q2 2025, driven by merger and restructuring expenses [14]. - Total noninterest expense rose to $133,498,000 in the September 2025 quarter, compared to $90,767,000 in the same quarter of 2024, indicating a substantial increase of 47% [26]. - The efficiency ratio for the quarter was 79.38%, significantly higher than 65.24% in the same quarter of 2024, indicating decreased operational efficiency [26]. - The efficiency ratio, excluding loss on sale of investments, was 59.62% for the quarter ended September 30, 2025 [36]. Capital and Deposits - The company maintained a strong capital position with a total shareholders' equity of $1,809,395 million, reflecting a solid growth trajectory [58]. - The company’s total deposits reached $13.70 billion, up 13.0% from $12.07 billion in the prior year [24]. - Noninterest-bearing demand deposits increased to $3.09 billion, a rise of 19.5% compared to $2.58 billion a year ago [24]. - The average deposit account balance was $18,792 as of September 30, 2025, with a total of 728,843 accounts [40]. - Total capital to risk-weighted assets ratio for Northwest Bancshares, Inc. was 15.50%, exceeding the minimum capital requirement of 10.50% [42].

Core Insights - Northwest Bancshares, Inc. reported a net income of $3 million for Q3 2025, a significant decrease from $34 million in the same quarter last year, primarily due to increased provisions for credit losses and merger-related expenses [1][12][13] - The company achieved record total revenue of $168 million for the quarter, reflecting a 21% growth year-over-year, driven by the acquisition of Penns Woods Bancorp [1][4] - Adjusted net income for the quarter was $41 million, or $0.29 per diluted share, an increase from $38 million in the previous quarter, attributed to a rise in net interest income [1][2] Financial Performance - Year-to-date earnings per share (EPS) stood at $0.61, marking a 15% growth from the prior year [1] - The annualized return on average shareholders' equity for Q3 2025 was 0.69%, down from 8.50% in the same quarter last year [1][21] - Net interest income increased by $25 million compared to Q3 2024, driven by higher average yields and an increase in average earning assets due to the Penns Woods acquisition [6][8] Acquisition Impact - The acquisition of Penns Woods added $2.2 billion in total assets, including $1.8 billion in loans and $164 million in investments [2] - The merger integration activities were completed on time, contributing to the company's strategic growth and operational efficiency [4] Balance Sheet Highlights - Average loans receivable increased to approximately $12.57 billion, a 12% increase year-over-year [5] - Average deposits grew to $13.30 billion, reflecting a 9.4% increase from the previous year, primarily due to the addition of Penns Woods deposit accounts [5][7] - Total assets reached $16.38 billion as of September 30, 2025, compared to $14.41 billion a year earlier [18] Dividend Announcement - The Board of Directors declared a quarterly cash dividend of $0.20 per share, representing an annualized dividend yield of approximately 6.5% based on the market value as of September 30, 2025 [3]

Core Viewpoint - Northwest Bancshares (NWBI) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The earnings report is scheduled for release on October 27, and better-than-expected key numbers could lead to a stock price increase, while a miss could result in a decline [2]. - The consensus estimate for quarterly earnings is $0.29 per share, reflecting an 11.5% year-over-year increase, with expected revenues of $167.1 million, up 20.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Northwest Bancshares is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.86%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise History - In the last reported quarter, Northwest Bancshares was expected to post earnings of $0.29 per share but actually delivered $0.30, resulting in a surprise of +3.45% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Comparative Industry Analysis - WSFS Financial, another player in the Zacks Financial - Savings and Loan industry, is expected to report earnings per share of $1.26 for the same quarter, indicating a year-over-year change of +16.7% [18]. - WSFS's revenues are projected to be $267 million, down 0.3% from the previous year, with an Earnings ESP of +2.11%, suggesting a higher likelihood of beating the consensus EPS estimate [19].