Northwest Bancshares(NWBI) - 2024 Q4 - Annual Results

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].