Group 1 - Northwest Bancshares reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and up from $0.24 per share a year ago, representing an earnings surprise of 3.85% [1] - The company posted revenues of $154.26 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 9.40%, compared to year-ago revenues of $135.47 million [2] - The stock has underperformed the market with a loss of about 0.1% since the beginning of the year, while the S&P 500 has gained 4% [3] Group 2 - The current consensus EPS estimate for the coming quarter is $0.24 on revenues of $140.65 million, and for the current fiscal year, it is $1.09 on revenues of $625.42 million [7] - The Zacks Industry Rank for Financial - Savings and Loan is currently in the top 12% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Northwest Bancshares has a Zacks Rank of 1 (Strong Buy), suggesting that the shares are expected to outperform the market in the near future [6]

Financial Performance - Northwest Bancshares, Inc. reported a net income of $33 million, or $0.26 per diluted share for Q4 2024, an increase of 13.8% from $29 million, or $0.23 per diluted share in Q4 2023[4]. - Adjusted net income (non-GAAP) for Q4 2024 was $35 million, or $0.27 per diluted share, up from $34 million, or $0.26 per diluted share in the prior quarter[5]. - The net income for the quarter ended December 31, 2024, showed an increase compared to the previous quarter, although specific figures were not disclosed[18]. - Net income for Q4 2024 was $32,750 thousand, slightly down from $29,014 thousand in Q4 2023, resulting in a basic and diluted earnings per share of $0.26[28]. - The company reported a net income of $100,278 thousand for the year ended December 31, 2024, compared to $134,957 thousand in 2023, indicating a decrease of 25.5%[31]. Interest Income and Margin - The net interest margin expanded by 9 basis points to 3.42%, driven by a $13 million increase in interest income due to redeployment into higher-yielding loans[10]. - Total interest income for Q4 2024 was $170,722 thousand, an increase from $157,388 thousand in Q4 2023, representing an 8.5% year-over-year growth[28]. - For the year ended December 31, 2024, total interest income reached $669,196 thousand, up from $587,922 thousand in 2023, reflecting a 13.8% increase[31]. - The average yield on loans improved to 5.56% for Q4 2024, up from 5.19% in Q4 2023, reflecting the impact of higher market interest rates[10]. - The yield on total interest-earning assets improved to 5.00% in 2024, up from 4.42% in 2023, an increase of 13.14%[73]. Loan and Deposit Trends - Average loans receivable decreased by 0.2% from the prior quarter to $11.20 billion, while average deposits declined by 0.6% to $12.03 billion[9]. - Total loans as of December 31, 2024, reached $11,180,014, an increase from $11,056,780 on December 31, 2023, representing a growth of approximately 1.1%[58]. - Total deposits increased to $12,144,554 as of December 31, 2024, compared to $11,979,902 a year ago, reflecting a growth of approximately 1.38%[26]. - The company reported a total loans receivable of $11,180,014 as of December 31, 2024, down from $11,406,041 a year earlier, indicating a decrease of about 1.98%[26]. - Uninsured deposits amounted to $3,131,231 thousand, accounting for 25.8% of total deposits as of December 31, 2024[40]. Credit Losses and Provisions - The total provision for credit losses increased by 239.8% to $16.6 million, primarily due to elevated charge-offs and growth in the commercial lending portfolio[12]. - Provision for credit losses on loans increased significantly to $15,549 thousand in Q4 2024 from $3,801 thousand in Q4 2023, indicating a rise in expected credit losses[28]. - The provision for credit losses for the quarter ended December 31, 2024, was $15,549 million, significantly higher than $5,727 million in the previous quarter[64]. - The ending balance of the allowance for credit losses was $116,819 million as of December 31, 2024, down from $125,813 million in the previous quarter[64]. - Net charge-offs to average loans, annualized, increased to 0.87% for the quarter ended December 31, 2024, compared to 0.18% in the previous quarter[64]. Operational Efficiency - The efficiency ratio improved to 61.8%, reflecting the company's focus on cost management and operational efficiency[3]. - The efficiency ratio for Q4 2024 improved to 61.80% from 66.93% in Q4 2023, suggesting better cost management[28]. - Efficiency ratio, excluding certain expenses, improved to 59.61% for the quarter ended December 31, 2024, down from 64.66% a year earlier[38]. Mergers and Acquisitions - Northwest Bancshares announced an agreement to acquire Penns Woods Bancorp, expected to close in Q3 2025, enhancing its market position[7]. - The company is in the process of a proposed merger with Penns Woods Bancorp, Inc., which is subject to various risks and uncertainties[20]. - The expected cost savings and revenue synergies from the proposed merger may not be fully realized within the anticipated timeframes[20]. Asset and Equity Metrics - As of December 31, 2024, total assets of Northwest Bancshares, Inc. amounted to $14,408,224, a slight decrease from $14,419,105 a year earlier[26]. - Total shareholders' equity increased to $1,596,856 thousand as of December 31, 2024, compared to $1,551,317 thousand a year earlier, reflecting a growth of 2.9%[35]. - The equity to assets ratio stood at 11.08% as of December 31, 2024, slightly up from 10.76% a year earlier[26]. - Tangible common equity to tangible assets improved to 8.65% as of December 31, 2024, up from 8.30% a year ago[35]. - The company reported a tangible book value per share of $9.51 as of December 31, 2024, up from $9.17 a year ago[35].

Core Insights - Northwest Bancshares, Inc. reported an adjusted net income of $35 million, or $0.27 per diluted share for the quarter ended December 31, 2024, reflecting a $1 million increase from the prior quarter [2] - The company declared its 121st consecutive quarterly dividend of $0.20 per share, representing an annualized dividend yield of approximately 6.1% [3] - The company announced an agreement to acquire Penns Woods Bancorp, Inc., expected to close in the third quarter of 2025, which will enhance its market position [5] Financial Performance - Net income for the quarter was $33 million, or $0.26 per diluted share, an increase from $29 million, or $0.23 per diluted share in the same quarter last year [1] - The annualized returns on average shareholders' equity and average assets for the quarter were 8.20% and 0.91%, respectively, compared to 7.64% and 0.80% for the same quarter last year [1] - The efficiency ratio improved to 61.8% [1] Income Statement Highlights - Interest income for the quarter was $170.7 million, with net interest income at $114.2 million, reflecting a 2.6% increase from the prior quarter [7] - The net interest margin expanded to 3.42%, up from 3.33% in the previous quarter [7] - Noninterest income increased to $40.1 million, a 43.9% increase from the previous quarter [12] Provision for Credit Losses - The total provision for credit losses was $16.6 million, significantly higher than $4.9 million in the prior quarter, driven by elevated charge-offs [10][11] - Net charge-offs to average loans, annualized, were 0.87% [10] Balance Sheet Highlights - Average loans receivable decreased by $47 million from the previous year, while average deposits grew by $232 million [8] - Total assets as of December 31, 2024, were $14.4 billion, with total liabilities at $12.8 billion [23] Strategic Initiatives - The company is focusing on commercial banking and deposit growth, which has led to an increase in average commercial and industrial loans [4] - The acquisition of Penns Woods Bancorp is part of the long-term growth strategy to enhance market presence [5]

Group 1 - Northwest Bancshares (NWBI) is expected to report quarterly earnings of $0.26 per share, reflecting a year-over-year increase of 8.3% [1] - Anticipated revenues for the quarter are projected to be $141.01 million, showing a 4.1% increase compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [2] Group 2 - Analysts project the 'Efficiency Ratio' to reach 64.6%, down from 66.9% a year ago [5] - The 'Net Interest Margin' is forecasted to be 3.3%, slightly up from 3.2% in the previous year [5] - The consensus for 'Average Balance - Total interest-earning assets' is $13.43 billion, unchanged from the year-ago value [5] Group 3 - 'Total noninterest (loss)/income' is expected to reach $29.37 million, compared to $29.17 million reported in the same quarter last year [6] - 'Trust and other financial services income' is projected at $8.04 million, up from $6.88 million in the previous year [6] - 'Service charges and fees' are anticipated to be $15.97 million, slightly higher than the $15.92 million reported last year [7] Group 4 - 'Net Interest Income' is forecasted to reach $111.46 million, compared to $106.30 million in the same quarter of the previous year [7] - Shares of Northwest Bancshares have seen a -1.4% change in the past month, compared to a -0.4% move of the Zacks S&P 500 composite [8] - With a Zacks Rank 1 (Strong Buy), NWBI is expected to outperform the overall market in the near future [8]

COLUMBUS, Ohio, Jan. 10, 2025 /PRNewswire/ -- Northwest Bancshares, Inc. (NASDAQ: NWBI) will host a conference call to review fourth quarter 2024 financial results on Friday, January 24 at 10:00 a.m. (EDT). The results are scheduled to be released at approximately 7:30 a.m. (EDT). The live audio webcast and presentation slides will be available on www.northwest.com under Investor Relations, Events & Presentations. Northwest will notify the public that financial results have been issued through a press rele ...

The Future Investor with Albert Anthony is an author concept launched on the Seeking Alpha platform, focusing on growing a diversified portfolio and unlocking future drivers of performance by covering stocks across multiple sectors.Albert Anthony is the pen name of a contributing analyst who has covered over +200 stocks on this platform since 2023, growing to over 1.07K followers. Based on this new article series, he is also working on a new book on Amazon to be called The Future Investor: Growing a Diversi ...

Core Viewpoint - The Zacks rating system provides a reliable method for individual investors to assess stock potential based on earnings estimate revisions, which significantly influence near-term stock price movements [1][4][13]. Company Summary: Northwest Bancshares (NWBI) - Northwest Bancshares has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by an upward trend in earnings estimates [2][3]. - The expected earnings per share for the fiscal year ending December 2024 is $1.03, reflecting a decrease of 6.4% from the previous year [6]. - The Zacks Consensus Estimate for Northwest Bancshares has increased by 6.1% over the past three months, showcasing a positive trend in earnings estimates [14]. Investment Implications - The upgrade to Zacks Rank 1 places Northwest Bancshares in the top 5% of Zacks-covered stocks, suggesting potential for price appreciation in the near term [9][12]. - The Zacks Rank system has a strong historical performance, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988, indicating the effectiveness of the rating system [5]. - The correlation between earnings estimate revisions and stock price movements suggests that tracking these revisions can be beneficial for investment decisions [4][13].

Core Viewpoint - Northwest Bancshares, Inc. will acquire Penns Woods Bancorp, Inc. in an all-stock transaction valued at approximately $270.4 million, enhancing its presence in North Central and Northeastern Pennsylvania [1][2]. Company Overview - Penns Woods Bancorp has approximately $2.3 billion in assets, $1.7 billion in total deposits, and $1.9 billion in total loans as of September 30, 2024 [2]. - The combined company is expected to have pro forma total assets exceeding $17 billion, positioning it among the top 100 largest banks in the nation [2]. Transaction Details - The merger will involve Northwest exchanging shares of its common stock for all outstanding shares of Penns Woods common stock, with a ratio of 2.385 shares of Northwest for each share of Penns Woods [3]. - The transaction consideration is valued at $34.44 per share of Penns Woods, representing a 139.0% multiple of tangible book value and a 12.8x multiple on LTM core earnings [3]. - The merger is expected to qualify as a tax-free reorganization, and Penns Woods shareholders will receive a dividend of approximately $0.48 per share post-merger, which is about 49% higher than their current dividend [3]. Strategic Implications - The merger is seen as a milestone in Northwest's long-term growth strategy, allowing for expansion into new markets and enhanced service delivery [4]. - The combined entity will have over 150 financial centers across four states, increasing its market presence significantly [2][4]. Financial Impact - Excluding one-time transaction costs, the merger is expected to be approximately 23% accretive to 2026 fully diluted earnings per share [5]. - Tangible book value dilution is anticipated to be around 9% at closing, with an earn-back period of under 3 years [5]. Timeline and Approvals - The transaction is expected to be completed in the third quarter of 2025, pending regulatory approvals and shareholder consent from Penns Woods [6].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 001-34582 | --- | --- | --- | |----------------------------------------------------|------------------------------------- ...

Financial Data and Key Metrics Changes - The company reported net income of $33.6 million or $0.26 per diluted share, with a net interest margin (NIM) expansion of 13 basis points to 3.33% [9] - Noninterest income decreased by $3 million due to losses on equity method investments and lower gains on the sale of SBA loans [10] - Noninterest expense decreased by nearly 2% or approximately $2 million from the second quarter, with an efficiency ratio improving to 64.8% [15] Business Line Data and Key Metrics Changes - Commercial and industrial loans grew by 2.8% quarter-over-quarter and 25.7% year-over-year, while residential mortgages declined by $190 million or 5.5% year-over-year [11] - The commercial real estate portfolio shrank by 1% since last quarter, indicating a shift towards a more desirable loan mix [11] - Loan yields increased to 5.6%, reflecting a focus on commercial banking transformation [11] Market Data and Key Metrics Changes - Deposits remained largely flat since last quarter but grew by 3.2% year-over-year, with the cost of deposits increasing by only 2 basis points [12] - The current cost of deposits stands at 1.78%, which is competitive relative to peers [12] Company Strategy and Development Direction - The company is committed to responsible growth, both organically and through acquisitions, with a focus on enhancing performance and financial standing [6][7] - The leadership team is exploring opportunities in fast-growing markets like Columbus and Indianapolis, considering both acquisitions and de novo strategies [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality environment, anticipating normalization towards long-term averages for charge-offs [24] - The company expects low single-digit loan growth and flat deposits, with a focus on managing deposit costs while balancing client expectations [17] Other Important Information - The company declared a quarterly dividend of $0.20 per share to shareholders of record as of November 8, 2024 [7] - The capital position remains strong with an estimated Tier 1 capital to risk-weighted assets of 13.7% [10] Q&A Session Summary Question: Fee income guidance and future expectations - Management indicated that guidance for 2025 will be provided during the fourth quarter results in January, with expectations for a normalized level of fee income [21][22] Question: Credit quality and charge-off guidance - Management clarified that the increase in normalized net charge-off guidance reflects a long-term trend rather than a specific quarter's expectation [24][25] Question: M&A targets and strategies - The company is focused on opportunities within its four-state footprint, looking for highly accretive deals in growth markets [28][29] Question: Commercial loan growth and regional strengths - Management noted that commercial loan growth is broad-based across new verticals, with expectations for continued growth in C&I lending [32][33] Question: NIM guidance and deposit costs - Management expects deposit costs to trend down next quarter, with a reasonable pricing stance in the market [37][38] Question: Balance sheet restructuring and provisioning - No significant restructuring is planned, but management is always evaluating market opportunities [56] - Provisioning for classified loans is not expected to increase materially for the long-term healthcare portfolio [57]