Northwest Bancshares(US:NWBI)2026-01-26 21:06Financial Performance - Northwest Bancshares, Inc. reported a net income of $46 million for Q4 2025, or $0.31 per diluted share, representing a 39.4% increase from $33 million, or $0.26 per diluted share in Q4 2024[2]. - Adjusted net income for Q4 2025 was $49 million, or $0.33 per diluted share, up from $41 million, or $0.29 per diluted share in the prior quarter, driven by a $6 million increase in net interest income and a $6 million increase in noninterest income[3]. - The company achieved record total revenue of $180 million in Q4 2025, reflecting a 17% growth compared to the same quarter last year[2]. - Net income for Q4 2025 was $45.713 million, significantly higher than $32.750 million in Q4 2024, marking an increase of 39.5%[28]. - Basic earnings per share for Q4 2025 were $0.31, compared to $0.26 in Q4 2024, showing a 19.2% increase[28]. - The annualized return on average equity for Q4 2025 was 9.70%, up from 8.20% in Q4 2024[28]. - The company reported an adjusted net income of $48.708 million for Q4 2025, compared to $34.802 million in Q4 2024, representing a 39.9% increase[34]. Revenue and Income Sources - Total interest income for Q4 2025 reached $202.825 million, up from $170.722 million in Q4 2024, representing an 18.8% year-over-year increase[28]. - Net interest income after provision for credit losses for Q4 2025 was $134.442 million, compared to $97.632 million in Q4 2024, reflecting a 37.6% increase[28]. - Noninterest income for Q4 2025 totaled $37.8 million, a 17.3% increase from $32.2 million in Q3 2025, driven by higher income from bank-owned life insurance[15]. - Noninterest income for Q4 2025 totaled $37.777 million, an increase from $40.063 million in Q4 2024, indicating a decrease of 5.7% year-over-year[28]. Asset and Loan Growth - Average loans receivable increased to $12.98 billion in Q4 2025, a 15.9% increase from $11.20 billion in Q4 2024, primarily due to the acquisition of Penns Woods Bancorp[6]. - Total loans receivable reached $13.01 billion, a slight increase from $12.94 billion in the previous quarter and a significant increase from $11.18 billion year-over-year[26]. - Total assets increased to $16.77 billion as of December 31, 2025, up from $14.41 billion a year earlier, representing a growth of 16.4%[26]. - Total loans reached $13.007 billion as of December 31, 2025, up from $12.940 billion in the previous quarter, representing a quarterly growth of 0.5%[54]. Credit Quality and Provisions - The total provision for credit losses decreased to $7.7 million in Q4 2025, down 75.2% from $31 million in Q3 2025, indicating improved credit quality[9]. - The allowance for credit losses was $150.21 million, compared to $116.82 million a year ago, indicating a rise in provisions for potential loan defaults[26]. - Provision for credit losses on loans for Q4 2025 was $5.743 million, a significant increase from $15.549 million in Q4 2024[28]. - Nonperforming loans to total loans ratio improved to 0.83% from 1.00% in the previous quarter, indicating a decrease in nonperforming loans[51]. - The allowance for credit losses to total loans ratio was 1.15% as of December 31, 2025, compared to 1.04% a year earlier, showing a slight increase in reserves[51]. Expenses and Efficiency - Total noninterest expense for Q4 2025 was $113.521 million, compared to $95.326 million in Q4 2024, reflecting an increase of 19.1%[28]. - Personnel expenses rose to $65.1 million in Q4 2025, a 22.5% increase from $53.2 million in Q4 2024, largely due to the integration of Penns Woods employees[16]. - The efficiency ratio for Q4 2025 improved to 63.09% from 61.80% in Q4 2024[28]. - The efficiency ratio, excluding loss on sale of investments, was 59.52% for the quarter ended December 31, 2025, showing a slight improvement from 59.62% in the previous quarter[38]. Dividends and Shareholder Equity - The company declared a quarterly cash dividend of $0.20 per share, marking the 125th consecutive quarter of dividend payments, with an annualized yield of approximately 6.7%[4]. - Total shareholders' equity increased to $1,890,424 thousand as of December 31, 2025, up from $1,855,736 thousand in the previous quarter and $1,596,856 thousand year-over-year[35]. - Book value per share increased to $12.94, compared to $12.52 a year earlier, indicating a growth of 3.4%[26]. Market and Operational Metrics - The company reported a total of 161 banking offices, maintaining the same number as the previous quarter and an increase from 141 offices a year ago[26]. - Full-time equivalent employees numbered 2,169, a decrease from 2,190 in the previous quarter but an increase from 1,956 a year ago[26]. - The closing market price per share was $12.00, down from $13.19 a year earlier, reflecting a decline of 9.0%[26]. Future Outlook - The company anticipates continued revenue growth in 2026 as it expands its consumer franchise in Columbus and deepens relationships in existing markets[5].