Northwest Bancshares(US:NWBI)2025-10-27 20:06Financial 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].