Northwest Bancshares (NWBI)
NASDAQ:NWBI
Top Page
Northwest Bancshares
(NASDAQ:NWBI)
Select Model
Select Model
Rating:68Neutral
Price Target:
$14.00
â–²(12.72% Upside)
Action:DowngradedDate:02/26/26
The score is driven by improving earnings and a de-risked balance sheet plus constructive 2026 guidance and cost-savings visibility. This is partially offset by weak/volatile 2025 operating cash flow and credit-related watch items (delinquencies/ACL), while a supportive valuation (moderate P/E and high dividend yield) and modestly positive technicals provide additional support.
Positive Factors
Balance sheet de-risking
Leverage moving to a conservative ~0.24 and materially higher equity provides a durable capital buffer. That stronger capital base supports loss absorption, regulatory flexibility, dividend continuity and measured growth funding without relying excessively on volatile wholesale funding.
Negative Factors
Weak operating cash flow
Sharp decline in operating cash flow and a ~48% drop in free cash flow point to volatility in cash generation versus reported earnings. Persistent cash flow weakness would constrain self-funding for growth, capital returns or reserve builds and raises scrutiny on earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet de-risking
Leverage moving to a conservative ~0.24 and materially higher equity provides a durable capital buffer. That stronger capital base supports loss absorption, regulatory flexibility, dividend continuity and measured growth funding without relying excessively on volatile wholesale funding.
Read all positive factors
Northwest Bancshares (NWBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.82B
Dividend Yield6.48%
Average Volume (3M)1.47M
Price to Earnings (P/E)14.0
Beta (1Y)0.62
Revenue Growth15.86%
EPS Growth16.50%
CountryUS
Employees1,996
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.33
Shares Outstanding146,139,470
10 Day Avg. Volume2,414,414
30 Day Avg. Volume1,474,204
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)0.93
Price to Sales (P/S)2.01
P/FCF Ratio12.42
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue2.31
Enterprise Value/Gross Profit3.38
Enterprise Value/Ebitda12.18
Forecast
1Y Price Target
$13.00Price Target Upside4.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.31
Revenue Forecast (FY)$714.98M
Northwest Bancshares Business Overview & Revenue Model
Company Description
Northwest Bancshares, Inc. operates as the holding company for Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. The company accepts various deposits, including checking, savings, money market de...
How the Company Makes Money
Northwest Bancshares generates revenue primarily through net interest income and non-interest income. The key revenue stream is net interest income, which is derived from the difference between the interest earned on loans and investments and the ...
Northwest Bancshares Earnings Call Summary
Earnings Call Date:Jan 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call highlighted a successful transformational year driven by the Penns Woods acquisition, record full-year revenue, solid quarterly earnings improvement, strong loan and deposit growth, margin expansion, SBA business momentum, and improved efficiency with planned cost savings realized ahead of schedule. Headwinds included an elevated one-time charge-off that pushed quarterly net charge-offs higher, a decline in ACL coverage, a rise in total delinquencies, some year-over-year noninterest income weakness due to nonrecurring prior-year gains, and near-term CD repricing risk (43% maturing in Q1 2026). Management provided a constructive 2026 outlook (revenues $710M-$730M, NIM in low 3.70s, low-to-mid single-digit loan growth) and emphasized disciplined, prudent growth and integration execution. Overall, positive operational and financial momentum appears to outweigh the manageable credit and expense-related headwinds.Positive Updates
Record Full-Year Revenue
Reported record full-year revenue of $655 million for 2025, with total fourth-quarter revenue up $11.8 million or 7% quarter-over-quarter.
Negative Updates
Elevated Q4 Net Charge-Offs and Specific Large Charge-Off
Annualized net charge-offs in the quarter were 40 basis points, elevated by a $9.2 million charge-off of a legacy student housing loan; 2025 full-year net charge-offs were 25 basis points (at the bottom end of the 25-35 bps guidance).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Revenue
Reported record full-year revenue of $655 million for 2025, with total fourth-quarter revenue up $11.8 million or 7% quarter-over-quarter.
Read all positive updates
Company Guidance
For 2026 management provided a full-year outlook calling for loan growth in the low- to mid-single digits and deposit growth in the low single digits; total revenues of $710 million to $730 million; net interest margin in the low 3.70% range (including normal contractual purchase‑accounting accretion and management’s internal view of rate moves); noninterest income of $125 million to $130 million; noninterest expense of $420 million to $430 million (with 100% of merger cost savings expected in Q1 2026); net charge‑offs of 20–27 basis points; and a tax rate roughly flat to 2025 at ~23%, with management expecting to drive positive operating leverage.Northwest Bancshares Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 876.99M | 754.09M | 700.05M | 557.84M | 534.14M |
| Gross Profit | 599.13M | 495.96M | 524.94M | 501.41M | 522.68M |
| EBITDA | 164.77M | 150.89M | 199.57M | 180.14M | 207.76M |
| Net Income | 126.01M | 100.28M | 134.96M | 133.67M | 154.32M |
Balance Sheet | |||||
| Total Assets | 16.77B | 14.41B | 14.42B | 14.11B | 14.50B |
| Cash, Cash Equivalents and Short-Term Investments | 1.82B | 1.40B | 1.17B | 1.36B | 2.83B |
| Total Debt | 446.28M | 444.70M | 642.66M | 924.32M | 391.72M |
| Total Liabilities | 14.88B | 12.81B | 12.87B | 12.62B | 12.92B |
| Stockholders Equity | 1.89B | 1.60B | 1.55B | 1.49B | 1.58B |
Cash Flow | |||||
| Free Cash Flow | 141.78M | 125.36M | 84.33M | 171.11M | 187.94M |
| Operating Cash Flow | 153.41M | 127.67M | 92.89M | 175.43M | 205.46M |
| Investing Cash Flow | -127.35M | 174.97M | -239.68M | -917.42M | -232.97M |
| Financing Cash Flow | -80.79M | -136.52M | 129.69M | -397.90M | 570.49M |
Northwest Bancshares Technical Analysis
Positive
12.42
Price Trends
12.61
Negative
12.26
Positive
12.14
Positive
Market Momentum
-0.05
Negative
48.96
Neutral
74.22
Neutral
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 12.42 is above the 20-day moving average (MA) of 12.36, below the 50-day MA of 12.61, and above the 200-day MA of 12.14, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 74.22 is Neutral, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.91B | 11.28 | 22.83% | 0.27% | 7.80% | 19.38% | |
76 Outperform | $1.71B | 13.12 | 16.68% | 2.65% | 6.09% | 11.49% | |
72 Outperform | $1.76B | 11.38 | 10.05% | 3.11% | 3.80% | -6.23% | |
71 Outperform | $1.73B | 9.31 | 15.21% | 2.73% | 3.98% | 6.75% | |
68 Neutral | $1.82B | 13.97 | 7.18% | 6.48% | 15.86% | 16.50% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
NWBI
Northwest Bancshares
12.42
1.16
10.29%
CHCO
City Holding Company
119.45
5.18
4.53%
FCF
First Commonwealth
17.26
2.22
14.76%
CASH
Pathward Financial
87.97
15.21
20.90%
OFG
OFG Bancorp
40.12
0.65
1.65%
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.