Education
About Us
Working with TipRanks
Follow Us
Northwest Bancshares (NWBI)
:NWBI
Top Page
Northwest Bancshares
(NASDAQ:NWBI)
Rating:75Outperform
Price Target:
$14.00
▲(6.30%Upside)
Northwest Bancshares (NWBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.68B
Dividend Yield6.07%
Average Volume (3M)620.99K
Price to Earnings (P/E)14.7
Beta (1Y)0.70
Revenue Growth6.30%
EPS Growth-12.43%
CountryUS
Employees1,996
SectorFinancial
Sector Strength79
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.35
Shares Outstanding127,752,450
10 Day Avg. Volume682,739
30 Day Avg. Volume620,986
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)0.96
Price to Sales (P/S)0.00
P/FCF Ratio9.39
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit3.18
Enterprise Value/Ebitda2.64
Forecast
1Y Price Target
$13.50Price Target Upside2.51% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
Northwest Bancshares Business Overview & Revenue Model
Company DescriptionNorthwest Bancshares, Inc. (NWBI) is a financial holding company headquartered in Warren, Pennsylvania. It operates through its subsidiary, Northwest Bank, providing a range of personal and business banking products and services. The company primarily serves customers in Pennsylvania, New York, Ohio, and Indiana, offering services such as checking and savings accounts, loans, mortgages, insurance, and investment management solutions. Northwest Bancshares is committed to community banking and focuses on delivering personalized customer service and financial solutions.
How the Company Makes MoneyNorthwest Bancshares generates revenue primarily through interest income from its lending activities, which include residential mortgage loans, commercial real estate loans, and consumer loans. Additionally, the company earns non-interest income from fees and service charges related to deposit accounts, loan servicing, and other banking services. Investment management and insurance services also contribute to its revenue streams. Northwest Bancshares benefits from strategic partnerships with financial service providers and local businesses to enhance its product offerings and expand its customer base. The company's focus on community banking helps maintain a loyal customer base, contributing to stable earnings.
Northwest Bancshares Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: 12.95%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance in the first quarter of 2025, with record earnings, strategic growth in commercial lending, and successful merger progress. However, the decrease in non-interest income and economic uncertainties present challenges moving forward.Q1-2025 Updates
Positive Updates
Record Earnings and Revenue Growth
Northwest Bancshares delivered $156 million in revenue and a net income of $43 million, marking a 48% increase compared to the same quarter last year. This is a record for earnings in a first quarter for Northwest Bancshares.
Strategic Shift Towards Commercial Lending
There was a 20% increase in average commercial C&I loans over the last year, reflecting a strategic shift towards commercial lending.
Improved Financial Metrics
The net interest margin expanded by 45 basis points to 3.87%, and the efficiency ratio improved to 57.7% from 59.6% in the prior quarter.
Successful Merger Approval
Regulatory approvals were received for the merger with Penns Woods Bancorp, with the merger expected to close by late July 2025.
Stable and Growing Deposit Base
Total deposits increased by $60 million quarter-over-quarter and grew 1.7% versus the first quarter of 2024, with a cost of deposits at 1.59%.
Negative Updates
Decrease in Non-Interest Income
Non-interest income decreased by $11.7 million from the previous quarter due to the absence of prior quarter transactions such as a $5.9 million gain on the sale of Visa B shares.
Economic Uncertainty
The current operating environment is marked by significant market volatility and economic uncertainty, which could impact future financial performance.
Company Guidance
During Northwest Bancshares Inc.'s First Quarter 2025 Earnings Conference Call, the company reported strong financial performance with $156 million in revenue and a net income of $43 million, a 48% increase from the same quarter last year. Earnings per diluted share rose to $0.34 from $0.23 in the first quarter of 2024. The firm achieved a 20% increase in average commercial C&I loans over the last year and improved its net interest margin by 45 basis points to 3.87%. The cost of deposits was reduced to 1.59%, remaining competitive among peers. The company declared a dividend of $0.20 per share, maintaining a 121-quarter streak. Northwest expects its margin to perform at the high end of its outlook range, assuming one to three Federal Reserve rate cuts later in the year. The company also announced progress on its merger with Penns Woods Bancorp, scheduled to close by late July, which will position Northwest among the top 100 U.S. banks by asset size. Despite market volatility, Northwest remains focused on execution, cost control, and risk management to sustain growth.Northwest Bancshares Financial Statement Overview
Summary
Northwest Bancshares shows strong revenue growth and a robust balance sheet with zero debt and substantial cash reserves. However, declining profitability margins and cash flow challenges indicate areas needing improvement.Income Statement
Northwest Bancshares shows a stable revenue base with a recent revenue growth rate of approximately 27.07% from 2023 to 2024. The gross profit margin remains robust at 100%, typical for the banking industry. However, the net profit margin decreased to 15.00% in 2024 from 25.62% in 2023, indicating reduced profitability. The EBIT margin also decreased to 2.99% in 2024, suggesting pressure on operational profitability.72
Positive
Balance Sheet
The company's balance sheet reflects strong liquidity with significant cash reserves. The equity ratio improved to 11.08% in 2024 from 10.76% in 2023, showing a slight increase in financial stability. The debt-to-equity ratio improved as total debt was eliminated in 2024, reducing financial leverage risk. Return on equity declined to 6.28% from 8.70%, indicating a decrease in shareholder profitability.80
Positive
Cash Flow
Operating cash flow decreased by 32.86% in 2024, reflecting a drop in cash-generating efficiency. The free cash flow also decreased by 26.07% from the previous year. The operating cash flow to net income ratio was 0.62 in 2024, indicating moderate cash flow coverage relative to net income.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 775.19M | 754.09M | 700.05M | 558.36M | 534.14M | 563.06M |
| Gross Profit | 516.87M | 495.96M | 524.94M | 501.41M | 522.68M | 436.74M |
| EBITDA | 165.62M | 150.89M | 199.57M | 179.31M | 207.76M | 97.26M |
| Net Income | 114.57M | 100.28M | 134.96M | 133.67M | 154.32M | 74.85M |
Balance Sheet | ||||||
| Total Assets | 14.45B | 14.41B | 14.42B | 14.11B | 14.50B | 13.81B |
| Cash, Cash Equivalents and Short-Term Investments | 1.51B | 1.40B | 1.17B | 1.36B | 2.83B | 2.14B |
| Total Debt | 441.79M | 444.70M | 642.66M | 924.32M | 391.72M | 411.84M |
| Total Liabilities | 12.82B | 12.81B | 12.87B | 12.62B | 12.92B | 12.27B |
| Stockholders Equity | 1.63B | 1.60B | 1.55B | 1.49B | 1.58B | 1.54B |
Cash Flow | ||||||
| Free Cash Flow | 165.92M | 125.36M | 84.33M | 171.11M | 187.94M | 128.18M |
| Operating Cash Flow | 164.58M | 127.67M | 92.89M | 175.43M | 205.46M | 140.44M |
| Investing Cash Flow | 272.63M | 174.97M | -239.68M | -917.42M | -232.97M | -560.58M |
| Financing Cash Flow | -203.32M | -136.52M | 129.69M | -397.90M | 570.49M | 1.10B |
Northwest Bancshares Technical Analysis
Positive
13.17
Price Trends
12.31
Positive
12.13
Positive
12.63
Positive
Market Momentum
0.17
Negative
68.77
Neutral
83.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWBI, the sentiment is Positive. The current price of 13.17 is above the 20-day moving average (MA) of 12.45, above the 50-day MA of 12.31, and above the 200-day MA of 12.63, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 68.77 is Neutral, neither overbought nor oversold. The STOCH value of 83.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWBI.
Northwest Bancshares Risk Analysis
Northwest Bancshares disclosed 48 risk factors in its most recent earnings report. Northwest Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Northwest Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.89B | 21.57 | 6.03% | 2.09% | -2.00% | -23.83% | |
75 Outperform | $1.68B | 14.72 | 7.19% | 6.07% | 6.30% | -12.43% | |
74 Outperform | $1.96B | 15.62 | 8.14% | ― | -5.67% | -44.11% | |
73 Outperform | $1.75B | 12.37 | 9.91% | 3.33% | 6.42% | -15.95% | |
68 Neutral | $1.63B | 18.20 | 13.44% | 3.25% | 5.03% | -3.19% | |
60 Neutral | C$14.62B | 6.20 | 20.17% | 5.63% | 26.93% | -38.21% | |
52 Neutral | $1.57B | 97.23 | -0.15% | ― | 4.29% | -109.93% |
* Financial Sector Average
Performance Comparison
NWBI
Northwest Bancshares
13.34
2.75
25.97%
FBNC
First Bancorp
46.86
15.64
50.10%
FCF
First Commonwealth
16.98
3.68
27.67%
LKFN
Lakeland Financial
63.65
7.03
12.42%
CUBI
Customers Bancorp
64.55
16.51
34.37%
CLBK
Columbia Financial
15.17
0.73
5.06%
Northwest Bancshares Corporate Events
Executive/Board ChangesM&A Transactions
Northwest Bancshares Appoints New Chairman Timothy M. Hunter
Positive
May 12, 2025
On May 12, 2025, Northwest Bancshares, Inc. announced a leadership transition with Timothy M. Hunter appointed as the new Chairman of the Board, succeeding Timothy B. Fannin, who stepped down in anticipation of his retirement in 2026. The transition marks a significant moment for the company, which is on track to becoming a Top 100 US bank by assets, with a merger with Penns Woods expected to close in late July. This leadership change is seen as a strategic move to continue the company’s growth trajectory, leveraging Hunter’s extensive business experience and previous roles within the company.
The most recent analyst rating on (NWBI) stock is a Sell with a $12.00 price target. To see the full list of analyst forecasts on Northwest Bancshares stock, see the NWBI Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.